Should you fix up your home to get it sold, or sell it as-is?

Now that it comes time to sell your home, you realize that there are some things that you should have done over the years, but chose to do others for one reason or another.  You may have focused on the interior, and now your home is missing curb appeal, or you may have focused on the exterior, and the inside needs updating. So what do you do?

The answer will depend greatly upon a number of variables including your available funds, estimated time frame of completion of any work to be performed and whether or not that work can be completed while the home is on the market, the likelyhood of the return on your investment, the current real estate market climate and the number of competing homes in your price range. Your agent should be able to guide you as to what would make the most sense in your situation.

If fixing up your home seems to be the best choice: Make a list of everything that needs attention, whether it is defective, broken or worn out. Don't be afraid to ask your agent for assistance on this. It is important that buyers do not spot problems or issues before you do. If a buyer sees a number of minor issues, they may think that there are more issues that have gone undetected, and pass on your house.

Here are a few improvements to make before selling your home:

Remove and replace dated light fixtures and make sure EVERY light in the home is working properly, and that there are no dim areas.
Remove excess furniture, clutter and personal effects. (see staging articles )
Paint walls that need it, and if any room color is dark, paint it a neutral color.
Make sure that your heating and cooling systems are operating properly.
Note any plumbing issues and repair (including leaky faucets)
Replace worn or outdated carpeting. (If there is hardwood underneath your carpet  in good condition, just remove the carpet)
Replace broken windows, rotted wood, and make sure all doors and locks are working properly.

Weigh the cost of individual proposed improvements against the home's estimated market value after the repairs or upgrades are completed. See my prior post on Return on Investment for Home Repairs.  Improvements should not be warranted if the cost of that improvement outweighs the return. Before you decide to change the carpet, or re-roof your home, look at this prior post regarding return on investment percentages. You may also want to view a few homes that your  home will be competing with- if most of these homes have amenities or upgrades that yours does not, take that into consideration as well. If the kitchens are upgraded, you may want to consider an improvement, just don't overdo it. If you will be replacing appliances, there is no need to go top-of-the-line. Mid-range is fine. Remember, those appliances would be brand new, and that's a bonus within itself.

Selling your home in as-is condition: If you are considering  selling  as-is route, just make sure you have carefully thought out the following: Is it that cumbersome, or costly to do any repairs whatsoever?
Have you priced it correctly for the repairs, improvement that it needs?

Fixer-uppers have some appeal to  a general market, it just depends on the scope of repairs, or improvements that are needed. Minor cosmetics won't scare a number of buyers away who are willing to do some work by themselves, however when the minor repairs or cosmetics get to be too much to handle, they, too will pass. Limiting your market if you don't absolutely have to is not the best idea.  Remember, if an upgrade or repair costs $3,000 for example, you can expect the buyer to want to reduce the price by about $4,500 , just for the inconvenience of doing the work themselves. It's not a rule of thumb, it just seems to be a pattern that I have seen. When you price your home, and your agent creates marketing materials for the home,  you may want to note that you have reduced the price accordingly to offset the work needed, and hopefully that will head off any lowball offers.

Truly, you need expert guidance in any circumstance, and the advice that I would give you  is going to be different than the advice that I may give your neighbor. You have twoo different houses, and two different sets of circumstances regarding yoru proposed sale. When you are ready to make a move, and need a professional, call me. I'll be right to the point, and guide you in the best direction possible.

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Antique or Historic Homes in Connecticut- Do you know what to look for?

If you are thinking about buying an antique home, there are a number of unique factors that should go into your decision. Remember, that one day you will be a seller of that antique home.

Connecticut  has many "antique" homes, which are also commonly called "historic homes", however the two terms are not truly interchangeable. An antique is classified as a home that is greater than one hundred years of age.  An historic home does not necessarily have to be 100 years or older. It could be that a special event took place at the home,  that it housed a famous resident at one time, or was built by a renowned architect. An example would be "FallingWater" which was designed and built by Frank Lloyd Wright. While not an antique, this home was built between 1936 and 1939 and certainly has much historical significance.

If you are interested in purchasing an historic home, there are certain things that make your purchase more unique than others, and having an experienced team of professionals on your side is crucial to making a good decision.

First, and very important! Is the home on the local, Statewide, or National Register of Historic Places? Depending on what your intentions are  for the home, it could be a good thing, or a bad thing. A home on any of these "Registers", will have a continued appeal to a certain number of buyers, however  you must make sure and do your due diligence- If the home is listed in any of these places, there will aso be certain guidelines as to what you can change  or remodel in the house. There may even be a color restriction on the exterior, for historic preservation purposes.

Historical integrity, even if not listed in any registers, can be a concern for many buyers who are interested in this type of property. For example, your upgrades should  pay special attention to period details, and for example, a whirlpool in the bath or steam shower with glass enclosure doors would be inappropriate because these features are not indicative of the time that the home was built,  Sure, it's your home, and you can do what you want to with it, just remember that you have a limited buyer pool for resale, and you would limit it even further.

Major components of the home including heating, plumbing, electrical and air conditioning- When the  home was built, there were no building codes, so you may need to upgrade  or revamp the electrical, which may have already  been done once, but in need of updating again. Take special care to  look at the number of electrical outlets in the home, and if there are not enough outlets, woud it be reasonable and feasible to add more.(Speak with a licensed electrican on this) There could be galvanized plumbing and cast iron pipes, and it may be time to consider replacement (Speak with a licensed plumber)

Some  fun things to look for when purchasing an antique home:

Chestnut wood- American Chestnut, although once plentiful and used primarily  in the upper end antique homes. A severe blight nearly made this species extinct, and even now, the Chestnut that you see is usually imported from Europe. (Yes, you'll pay dearly for it)

The Front Door- Depending on the age and location of the home, if you are lucky  enough to find a home with its original front door, look for the amount of nails. The amount of nails in the door was to denote the wealth and rank of the occupant. .. and while we are on the subject of nails, rose-head nails  in the home is of value to its historical  integrity as well.

One last thing to add of a general nature is knowing the homes specific history. I really appreciate antique homes, (as if you couldn't tell)  Whenever I list a historic home, I contact the Historical Society and get  as much history on that home as I can for the incoming buyers as well as the outgoing sellers, if they do not have a complete history on the property. Finding out who built the home, who lived there, what they did,  and when certain improvements were made is all part of the charm of an antique  and historic home.

So if you are thinking of buying  or selling an antique home, you will need your experienced professional team to assist you, and you can start with me as your real estate agent :) 

Connecticut Homesellers take note! Conveyance tax increase to begin July 1, 2011

ALERT:  The Biennium Budget Bill for 2012-2013 (Senate Bill #1239, Section 102) was just signed into law by Connecticut Governer Dannel P. Malloy. The Bill includes a .25 percent increase to the Real Estate Conveyance tax .

A synopsis of the new State Conveyance tax as of July 1, 2011 is as  follows (This is when you SELL your home) : ALSO NOTE: Your homeowner property taxes will change as of July 1, 2011 through June 31, 2012. Read this article to find your new mill rate.

• Residential property (and vacant land) will  be taxed at .75 percent or .0075 (instead of one half of of one percent).
• Residential property that is conveyed for more than $800,000  will be taxed at .75 percent or .0075 up to $800,000, and the balance of the sales price at 1.25 percent .
• Non-residential property will be   taxed at 1.25 percent, instead of one percent.
• Property conveyed by a delinquent mortgagor to a financial institution of property on which mortgage payments have been delinquent for not less than six months will be taxed at .75 percent or .0075.

Excerpted from OLR Bill Analysis  SB 1239-§§ 102 & 103 — REAL ESTATE CONVEYANCE TAX

"The real estate conveyance tax has two parts: a state tax and a municipal tax. The applicable state and municipal rates are added together to get the total tax rate for a particular transaction. The combined rate is applied to the sale price.

The current state tax is 0. 5% of (1) the first $ 800,000 of the sale price of a residential property and (2) the full sale price of unimproved land and certain bank foreclosures for mortgage delinquencies. A 1% rate applies to (1) sales of nonresidential property other than unimproved land and (2) any portion of the sale price of a residential dwelling that exceeds $ 800,000 (the so-called “mansion tax”). The bill increases these rates to 0. 75% and 1. 25%, respectively.
In addition to the state tax, a seller must pay a state-specified conveyance tax to the municipality where the property is located. The current municipal tax rate is 0. 25% for all towns plus an additional tax of up to 0. 25% in 18 eligible towns that choose to impose the increased rate. Thus, under current law, the municipal tax rate can range from 0. 25% to 0. 5%, depending on where the property is located."

It is somewhat unclear in the bill as to when the conveyance will be deemed to have occurred. I would advise speaking to your attorney for clarification as to which specific date would be accurate-  contract,  deed,  closing or recording, as it WILL MAKE A DIFFERENCE.  

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And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

Can a home seller change his/her mind after accepting your offer?

You've made an offer, the seller accepted it, and all of a sudden, your agent calls you to say that the seller is accepting another offer instead of yours. Can this really happen? .... Unfortunately, yes.

This is a frequent question where the answer  can fall into a gray area depending on how far along you are in the transaction. First of all, if you happen to be in this particular situation now, contact your attorney immediately. I am not an attorney, nor will I, or can I offer legal advice.

Let's say you place an offer with the seller, and after some negotiating, you come to an agreement on all terms. In order for the offer to be valid, it must be signed by both parties. A verbal contract is virtually unenforceable. (again, contact your attorney)  

In our area of Fairfield County, most offers are written on binder forms (which are not considered contracts). The sellers attorney will prepare a contract based upon the terms and conditions as set forth in the fully executed  binder agreement.

If the seller has not signed the binder, and another offer comes in, that seller can accept that offer, and not even give you the option, or the opportunity to change your already verbally accepted offer. A verbal acceptance means virtually nothing until you have an authorized agreement.

As a matter of fact, ALL offers must be presented to the seller up until the time of closing. The seller may choose not to accept another offer, depending on a variety of factors, including first and foremost, his attorney's advice which will most certainly take into account how far along course the transaction is, and what damages may be incurred if the seller chooses to take that offer.

The best thing to do is to perform as per your agreement as outlined in your agreement. Your agent will guide you to stay within the guidelines that are set forth and hopefully avert this kind of thing from happening. .... and I just happen to know a great agent! Contact me when you are ready to buy, and I will be your advocate. Here are a few testimonials.

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All about Westport, Connecticut

 A charming and wealthy coastal town, Westport Connecticut is located on Long Island Sound in affluent Fairfield County. Semi-rural areas and privately situated homes create a tranquil, yet easily commutable location for anyone needing or wanting close proximity to New York City. Many residents utilize both train stations in town, and have the ability to get to NYC in record time.  

One of the wealthiest towns in the country, this diversified and cosmopolitan town also boasts coastal beauty and rustic woodland scenery. Sherwood Island State Park is the towns 'gift' to state residents, and is one of the largest designated picnic and beach grounds in all of Fairfield County.

At the same time, the small town ambience is evident, and residents enjoy a vast array of boutique shopping in the trendy downtown shopping district, which draws a sophisticated and affluent clientele. Westport's Main Street businesses are a pleasant mix of boutiques and well known upper end stores, with newer store fronts and quaint colonial facades adorning this mini-mecca. Walk into one of the shops on Main Street and exit through the back, and you've just entered Parker Harding Plaza, with beautiful views of the Saugatuck River.  

Some of the late 19th century buildings still remain here, have been restored to better than new condition, and house a variety of different businesses and shops. The library and the Levitt Pavilion are just a short walk away. The Westport Country Playhouse is closeby, too. Westport is chock full of superb cultural, recreational and educational facilities.  

Local residents support the school system, and their support and involvement helps to create a very tight knit community. Westport's School system is well known throughout the area, and education has always been a priority for local government.

It has been said that Westport had literally been 'Adopted' in the 1920's by many artists and writers as a peaceful retreat for inspiration in their works. Long considered an 'artsy' type of community, this town is also home to many celebrities. A charming landscape and beautiful oceanfront scenery add to the appeal, which has made this town a favorite in Fairfield County.

Westport Connecticut
Incorporated in 1835
20 square miles
27,000 Residents
9800 Households
82% Owner Occupied
31.7% of homes built prior to 1950

2011 FIRST QUARTER REAL ESTATE MARKET STATISTICS for Westport, Connecticut in .pdf format are here! KEY- (SF-Single Family Homes, CN-Condominiums, RN-Rentals, MU- Multi-Families, LA-Land)  Click Here!

Search for homes in Westport                    Sell your home in Westport

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