Thinking of moving? Now is a great time to repurpose Covid Fatigue to Prepare Your Home.

The real estate market is HOT in suburban and non-urban areas particularly since the onset of the covid-19 pandemic. This is a great time to sell or at least prepare your property if you are thinking of a near future move.  Since most of us are homebound over the next few months I thought I would share some steps you can take to get started.  Instead of succumbing to Covid fatigue perhaps this project will re-energize you.  

Take this opportunity to declutter, organize and fix up your space if needed. The goal will be to present the property as being well maintained. While it may be tempting to do a renovation or remodel, a renovation should only be done if the seller plans to stay in the home longer term to enjoy it. In general this cost will not be recuperated from the buyer. 

I always recommend minimal spending on home renovations unless there is a repair that will become a potential issue during an inspection.   Spend money wisely on cosmetic items that will give the home a fresh feel. 

If you have structural repairs that are of concern these should always be addressed as they will need to be disclosed by a seller.  While most of us are at home this is a great time to get estimates on needed repairs. You may be able to schedule these while working from home.  (Of note, Coldwell Banker offers a unique program called RealVitalize that allows sellers the opportunity to make needed repairs without upfronting the payment.  The settlement of the cost will be taken out of the proceeds of the sale.)  

More often than not there are many simple things a seller can do to prepare the property for sale on his or her own. Keep in mind that there is only one opportunity for a first impression, so you want to make it a good one. Why not take advantage of the time you have now to get started?

Curb appeal is key.  A seller should spruce up landscaping as well as exterior home features.  Touch up paint on home trim, door, outside lighting and the mail box will signal that the outside is well maintained.  Also it may be a good idea to buy a new welcome mat and check the foundation, steps, walkways, walls and patios for cracks and crumbling, and reseal if possible as well. .

Depending on the season or where you live you may want to trim hedges, clean the yard and plant bright flowers during spring time, keep lawn well watered in the summer, rake leaves in fall and keep outside walks clear during winter months.   

Inside the most important first step will be to declutter.  I recommend going through each room and determine which items you no longer need. The key is to show the property in the best possible light without distractions. Once decluttered go through each room and look for cosmetic items you can easier fix up to make the home feel fresh and clean.  

Some easy ideas may include cleaning all appliances, replacing any old worn or broken cabinet knobs and door fixtures. Also you may want to buy new guest towels and a a shower curtain to spruce up the bath.  Remember first impressions count and you want to do what you can to make a best first look.  Need more suggestions?  Feel free to reach out.

Wendy is a Realtor with Coldwell Banker Needham. She is available to help sellers prepare for the prospect of selling a home either virtually or in person.  For more information please email her at wendy.bornstein@nemoves.com or check her website at www.wendybcb.com.

The impact of the new tax bill on home ownership

The new proposed tax bill is being marketed as a plan to boost the economy and the middle class. Although I profess not to be an economist or tax expert I am quite nervous about its impact on most Americans who are not in the billionaire class.  Full Tax Plan (500 plus pages) click here.  According to the GOP this is a Christmas gift to all Americans but there are clearly differing perspectives as outlined in yesterdays New York Times article winner or loser?

As a realtor in a blue district I am on the loser list and can ascertain that this bill will not be helping me personally or the real estate market I serve.  For a brief understanding of the plan's impact click Overview.  This highlights the areas to be hit most and I can say for sure that this is a direct way to hurt those of us who live in markets with high costs of living, limited housing and state and local income taxes. 

I predict Home Ownership will likely decrease as it becomes prohibitive to finance a mortgage where the average home exceeds the cap on the new allowable principal.  Existing home owners will be reluctant to move up if they are currently within the allowable mortgage amount as the amount goes from $1M to $750K for new loans after December 15.  The homes that exceed the $1M cap will more likely start to drop in Price as buyers won't be able to deduct mortgage interest.    As noted in the WSJ the plan will hit NY and similiar higher cost regions like a dagger.

The areas where homeowners will be hit specifically include the Mortgage Interest and local property tax deduction.  Home owners will be able to deduct interest up to the first $1M basis of a home for an existing mortgage.  This mortgage had to be on record as of  December 15, 2017.  New loans will be subject to a maximum basis of $750K.  Home equity loan mortgage deductions currently allowed up to $100K will no longer be deductible.  In an area such as Dover and Needham where the median home price exceeds $900K this will surely hurt saleability.   Areas that invest significant tax dollars into public schools and other social services will be further penalized by higher local taxes and less deductibility.  Because the federal government will not have adequate money to fund many "social" programs I fear we may be hit twice.   State and local income tax will be reduced to $10K maximum.

For a brief idea of how the new tax bill will impact you click here.  For those who do benefit from the new plan I will say "Merry Christmas".  For the rest of us I will say may you not feel the burden too significantly in days to come.

Please note that I will continue to post relevant articles to the new tax bill below:



Wendy is a realtor with Coldwell Banker in Needham, Mass.  She loves helping local area buyeres and sellers and also has a national referral base.  Please visit her at wendybcb.com or on facebook @wendybcb.

Relevant articles
click here for estimated Tax Calculator - this was posted today 12/20/17 as result of final bill

Boston Globe 12/19/17 impact on Home Equity
NAR 12/20/17 Tax-reform/the-tax-cuts impact on Homeowners
WSJ 12/27/17 Property tax prepayment
Boston Globe 12/28/17 How to pay if escrow account for Property tax

Which do you value more Time or Money?

There is often an interesting paradigm when I ask this question to my friends and family members.  On one hand it may seem more practical to do something yourself as it would save you money but on the other hand, it could end up costing you more time than expected.  Perhaps this would have been time you could have spent at work or vacationing.  If you factor in the amount you are paid per hour, perhaps this is lost income and it would have been more effective to hire someone to do the job.  This can be a common dilemma when it comes to smaller household projects and it may come down to the pleasure factor, if in fact, you enjoy cleaning your home, mowing your lawn or assembling a piece of IKEA furniture.  

When you get to projects on a larger scale usually it is more cost effective to hire a professional to get the job done.  For example,  a tax accountant may be able to put together your return in a few hours and save you money by locating tax deductions you were unaware of.  You could alternatively spend a full weekend doing a return and end up missing some key deductions.

The old saying that "A penny saved is a penny earned" is not relevent when one is making a large monetary or life changing decision.  I have learned the hard way that in the long run it is always best to hire the person who will do the best job to get something I need done.   Even with IKEA furniture,  we have had to deal with the long lines at the store in the midst of putting a dresser together only to realize a critical piece was missing.  For a small amount more we could have paid someone to assemble and deliver a comparable piece of furniture and be done in an hour vs spending a good Sunday afternoon to get to the same point.  

In the real estate business it is always best to work with someone who knows the local area and market conditions.  A realtor will interview the buyer or seller to gain an understanding of their specific needs.  Their sole job is to work for the interest of the client to help them buy or sell a house.  They do not get paid until this job is complete.  It is recommended to do your research upfront but to work with an expert to guide you through the search or sell process.   

Too many times have I seen first time buyers spend months trying to search for a property, only to be unprepared or well positioned when ready to make an offer.  They often lose out to the buyer working with a realtor negotiating on their behalf to seal the deal.  The buyer needs to be in a competitive position with financing and readiness to understand the best terms when making an offer.  A buyers agent works on their behalf to help them be positioned and find the best property.  The cost for this service is most often paid through the sellers commission to the buyer and seller agents.  For the buyer,  there is no real logic for doing this on their own.  

Sellers often think they may save money by going about their property sale by themselves.  How many times do you drive by a house that says  FSBO "For Sale by Owner" one day and then see it hasn't sold a month later.    In the longer run,  the house hasn't had full market exposure, may not be well staged or may be overpriced.  

A seller agent would have guided the seller to best prepare this property for the optimal market exposure.  The commission fee they tried to avoid will be covered if they can sell their home quickly and for a competitive market price vs having the price driven down by keeping it on the market too long.   For the seller side to answer the true question of "Why"  one must also look at sales statistics.  Typically the home sold through a professional sells for 10-15% more therefore offsetting the commission cost.  On the time side, the seller who sells on his own will need to be available whenever a showing is requested.  In addition, once the home is sold often the buyer needs access to the property for inspections and follow up items.  A sellers agent will be there to help with these appointments and follow up on some time consuming things that may need to be handled along the way.

A well trained agent will advocate and help a buyer search for a property.  They will be able to walk a buyer or seller through any issues that may arise and refer the client to appropriate professional services as needed. In addition,  it is a real estate agents job to provide relevant  buyer information to a prospective buyer that may influence the buying decision.  The agent has a wealth of knowledge about the area and can refer the buyer to well known vendors or service professionals already well vetted.  

Beyond mandatory disclosures a seller is not obligated to disclose every issue about a property unless asked.  An experienced agent will lead the buyer to ask the right questions or prompt the buyer to have the appropriate professional inspect the property if he or she senses some concern.    Someone who tries to purchase a property without a professional runs the risk of being mislead.  On the seller side, an agent will advise the seller on which information must be shared with prospective buyers.  Someone who misinforms a buyer may be subject to liability.  Laws are constantly changing and both the buyer and seller have an increased risk of errors and liability if they are not properly guided through the transaction process.  I encourage both buyers and sellers to seek out professional services to help them save money and time in the long run.  This is when the saying "Time is Money" can be true.

Wendy recently joined Coldwell Banker Needham.  She has been a realtor for over 8 years and knowing the area quite well can share a hands on local perspective.  She has also recently earned the SRES  designation and looks forward to helping other baby boomers as they approach their next transitions.  Feel free to contact her directly or click here http://www.wendybcb.com if you would like to learn more.  

Buying local

I was at Legacy Place last week and saw signs for the newly to be opened Amazon Book Store.  When Legacy first opened there was a Borders Book Store.  This quickly went out of business as have many smaller and more local bookshops in malls and suburban shopping centers.  It is ironic that when Amazon came to the market the primary goal was to be an online resource to buy and sell books and it is now reestablishing itself with a storefront bookstore.  This store will be opening soon.

In the travel industry, for example. for a while consumers only booked travel through online sites.  I. for one used hotels.com until I ran into an issue with an overbooked hotel in NYC and had a difficult time reaching a real person to relocate us to a comparable hotel.  This was not a successful venture and I now book my hotels directly when I can.

In the real estate market, internet sites such as Trulia, Redfin and many others had for awhile made buyers think everything could be done online for real estate transactions.  Several small realtors have either lost market share or have merged with the larger players.  After going through a do-it-yourself phase clients have come to realize the value that a realtor can add to become an advocate and help with details required for a smooth transaction flow.  Realtors provide many services that cannot be done online.

The same phenomenon has been happening to other businesses as well.  Many online and cyber business have effectively hurt the local economy.  Many small mom and pop stores have a hard time facing the competition of online vendors who undersell their products.  Although the cost may be lower, I try to think about keeping the local vendors in business when I can.

Perhaps the internet and cyber transactions have expanded too quickly and consumers are now realizing the value of human contact for their business transactions.  Why else would Amazon be opening a storefront venue?  Although I am now with a larger real estate firm,  each office specializes in the local community and places high value in providing services that will benefit the community.  Next time you think about cyber Monday or going online think about the importance of human interaction and supporting the local businesses near you.

Wendy recently joined Coldwell Banker Needham.  She has been a realtor for over 8 years and knowing the area quite well can share a hands on local perspective.  She has also recently earned the SRES  designation and looks forward to helping other baby boomers as they approach their next transitions.  Feel free to contact her directly or click here http://www.wendybcb.com if you would like to learn more.