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How to Sell an Urban Home

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | March 1st, 2017

After a young woman in her 20s landed a dream job with a finance firm in Los Angeles, she made the same choice as an increasing number of millennials: to live walking distance from her workplace in downtown.

This true story doesn’t surprise Jeff Speck, a city planner and author of “Walkable City.” That’s because property in redeveloping urban centers is increasingly popular.

“Seventy-seven percent of millennials say they want to live in America’s urban cores,” says Speck.

The increasing popularity of walkable city neighborhoods with many amenities is good news for those with a property to sell in one of those areas, says Geoff Anderson, the president and CEO of Smart Growth America, a nonprofit group promoting city living.

“The closer you are to amenities, the higher the prices for city property,” he says.

Do you have a property to sell, whether a condo apartment or a detached house, in a vital urban core? If so, these pointers could prove of value:

-- Stress the value of road access.

Granted, most homebuyers wouldn’t relish living near the noisy entrance to a major highway. But a location just a mile from that ramp could be a plus for those who work in suburban areas but want to live downtown, says James W. Hughes, a housing expert and dean of the Rutgers University’s school of planning and public policy.

If your city location leads directly to an important thoroughfare, without being too close, he says this point should be emphasized in your marketing materials. Also, if the home is a short walk to mass transit, you should stress this point as well.

Sid Davis, a long-time real estate broker and author of “A Survival Guide to Selling a Home,” says that the majority of buyers with young children still prefer green suburban living to an in-town setting. But he notes that recent immigrants are often less resistant to life on a bustling street than those who’ve always lived in America.

To encourage interest, Davis says your agent should attach a map to the flier prepared to promote your property, pinpointing your home as well as popular sites nearby, such as the local cafe, a public library or a city park. This map should emphasize the advantages of your location.

-- Underscore access to improving urban schools.

Is the community where you live served by quality schools, whether public, charter or private? And are many would-be purchasers people with young children?

If so, Davis says it would be a smart idea to promote the purchase of your home as a way to gain easy access to good schools for your kids.

“Assuming your price is realistic and your schools are well regarded, this could be a genuine plus for your sale. Remember that many young families with a preference for city living are working diligently to improve the quality of the urban schools their kids attend,” Davis says.

-- Explore the cost of fencing your urban yard.

Some urban roadways seem particularly risky for children and pets. These include avenues traveled by many commercial vehicles. If you own a detached house along this sort of roadway, Davis says you might wish to fence your yard in hopes of lessening the fears of potential buyers.

“Fences aren’t cheap, there’s a lot of labor involved in their installation. But the expense could be justified if it helps unload a hard-to-sell property,” he says.

Your listing agent should be able to advise you on whether the fencing of your yard would constitute a justifiable pre-sale expenditure. As one money-saving option, the agent might recommend that you fence your backyard only, creating a protected area where small children and pets could play.

If you decide to invest in a fence, the choices may seem daunting.

“When selecting your fencing, choose something in wood or vinyl. Stay away from one of those chain-link fences that looks like a military installation,” Davis says.

-- Consider a price cut if your home won’t sell otherwise.

Suppose you’re attempting to sell a home on the noisier side of an urban community. But while comparable homes in more tranquil parts of your urban community are selling swiftly, your place continues to languish unsold.

In this case, Davis says one of your few remaining options is to take a slight price cut below what’s being asked for comparable properties on calmer streets nearby.

“Many sellers in popular city centers don’t need a discount. But if you’re selling in a still-up-and-coming area with an unusually high volume of construction noise, you might need a small price cut to move that property,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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How to Buy a Big House

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | February 22nd, 2017

Real estate agents often joke that the bigger the house, the smaller the family. And there's some truth to this.

“Your peak earning years typically don’t occur until your 50s or 60s. That’s when you can finally afford that ‘last hurrah’ house and enjoy the fruits of your labor,” says John Rygiol, a long-time real estate broker who specializes in luxury property.

Rygiol contends that for couples who can afford the elbow room and prestige of a big house, the ideal time to make that purchase is when their children are young and can make good use of the extra space.

James W. Hughes, a housing analyst and dean of the School of Planning and Public Policy at Rutgers University, says Americans have a long-standing preference for huge houses.

“There’s something beguiling about big houses. Bigger is always better in America, assuming you can afford it,” Hughes says.

Do you have solid reasons for buying a large house -- along with the financial means to support its mortgage, utility and upkeep costs? If so, these few pointers could prove helpful:

-- Select the strongest neighborhood you can afford.

The U.S. economy is still in an expansionary phase. But housing analysts say another real estate downturn is nearly certain. That means it’s wise to buy the sort of property most likely to retain value in bad times as well as good.

“Affluent areas with strong amenities are usually on the leading edge of any recovery,” Hughes says.

Foreclosures are far less common than they were during the financial crisis. But even if you spot one that seems too good a deal to pass up, it could be a perilous choice if the property is located in an area where foreclosures are still numerous.

“Even during a strong period of recovery, it can take a long time for a neighborhood like that to regain its reputation,” Hughes says.

His rule of thumb: It’s better to compromise and buy a smaller house in a stronger neighborhood than a much bigger one in a weaker area.

-- Choose a community with a reasonable commute.

In the past, many people seeking a huge house willingly accepted a lengthy commute in exchange for the space.

But even at a time when gas prices are moderate, it can be unwise to invest in a property in a distant suburb or exurban area.

“Buying a house that requires its owners to make a one-hour-plus commute is a significant financial risk, particularly if you have to sell within five to 10 years,” Hughes says.

-- Screen for top-rated public schools.

It’s widely believed that strong neighborhood schools help keep property values high and Hughes supports this view. Indeed, he contends that school quality is becoming increasingly important.

How can you check out school quality? Real estate agents typically decline to characterize schools in terms of quality, for fear their remarks might be taken as discriminatory. Yet your agent should be willing to provide you a large volume of statistics that compare schools on test scores, high school graduation rates and other quantitative factors. Then, too, you can make an appointment to visit schools to see how they fare on the intangibles, like the warmth and receptivity of teachers and staff.

In addition, for a fee you can buy detailed online reports on local schools through a service such as SchoolMatch (schoolmatch.com), a research organization focused on comparative school quality.

-- Give priority to the needs of your household.

Fred Meyer, a real estate broker and appraiser who sells property near Harvard University, says many parents of school-age children want a house with a large master suite that’s segregated from the cluster of bedrooms where their kids reside. This is especially likely if their offspring are teenagers with noisy electronic devices.

If both spouses operate a home-based business or do a substantial amount of telecommuting, there's that to consider as well.

“It’s common nowadays for buyers to ask for ‘his and her’ home offices that are separated from the main living areas of the house. This requires lots of space,” Meyer says.

At this point in the economic cycle, relatively few buyers of any age can afford to buy and maintain a big house in a desirable neighborhood. But if you are the lucky exception and big house ownership is a priority for you, Meyer sees no reason to postpone this goal.

“Buyers who want the social status of a large home and are well-positioned financially can make out very nicely in any market,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Change Your House, Change Your Life

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | February 15th, 2017

A couple in their mid-30s, parents of three boisterous boys, felt cramped in their tiny suburban house. Because they longed for more elbow room and loved animals, they dreamed of moving to a small farm outside their city.

The couple’s real estate broker, Sid Davis, found them just such a property. But the night before they were to submit an impulsive offer, they couldn’t sleep. All night, they fretted about the implications of living on a farm. As they ruminated, it occurred to them that caring for animals would seriously hinder their plans to travel with the kids, and they backed off.

Davis, the author of “A Survival Guide for Buying a Home,” says the couple avoided a potentially disastrous move, but that many buyers fare better when they thoroughly investigate the consequences of a major lifestyle change.

“Sit down and really look at the reality of any significant move well before you finalize your decision. One way to do this is to take a weeklong vacation and hang around the new area, to get a good feel for what it would be like to live there,” Davis says.

Of course, many people who methodically plan a major housing move turn out to be very pleased with their decision.

Take the case of Sheree Bykofsky, a writer who left a pricey Manhattan neighborhood for the Atlantic City area of New Jersey. There, after a thorough investigation into all her options, she found a brand-new apartment with large windows that overlooked the ocean and a picturesque lighthouse for much less money than her New York City place.

Here are a few pointers for those seeking a more fulfilling existence through a housing transition:

-- Examine your larger life plan before making a major housing decision.

Inevitably, making a lifestyle change involves trade-offs, says Bykofsky.

“You have to ask yourself questions, focusing on your needs and desires and figuring out which ones are strongest,” says Bykofsky, author of “Me: Five Years from Now,” a step-by-step approach to lifestyle change.

She recommends the use of visualization techniques to picture how your ideal future would look. In doing so, she says you should take into account not only your housing preferences, but also your professional and financial situation, along with health concerns.

“It’s not just about the money,” says Eric Tyson, a personal finance expert who also advocates taking a holistic approach to real estate decisions.

Though financial planners can help, Tyson says many tend to overlook non-financial variables when they advise clients on housing choices.

-- Take into account your savings for retirement.

Before you upgrade your housing, Tyson urges you to review your preparations for retirement, especially if you’re nearing retirement age.

“Even though your dreams of upgrading your real estate may seem pretty modest, if you’re facing retirement in the near term you may need to postpone these dreams until you’ve saved more for retirement,” Tyson says.

To gauge how well prepared you are for retirement, he suggests you use the free planning calculators provided on the websites of such mutual funds as Vanguard and T. Rowe Price.

-- Remember that a bigger property will consume more upkeep time.

Suppose you'd like a bigger house complete with elaborate landscaping, such as a topiary garden, in the backyard. If a financial analysis shows you can afford it, should you go ahead on that basis alone?

Not without considering the implications for your time of owning a much larger property, Tyson says.

“Maintaining a really big home can be draining, both emotionally and physically,” he says.

Of course, if you relish gardening and are willing to expend much of your free time maintaining your grounds or overseeing the contractors who do the work, the purchase of a property with extensive landscape requirements may seem less of a burden.

Tyson, who co-authored “Home Buying for Dummies,” suggests people carefully review their personal priorities before taking on ownership of a property that will tax their time.

“You may want to rethink your dream if it involves a high-maintenance home that means you’ll have much less time to spend with friends and family. People can be house poor in time as well as in money,” he says.

-- Factor relative property costs into your moving decisions.

As a self-employed writer and literary agent, Bykofsky is free to live anywhere she likes. If you’re in the same position or are on the verge of retirement, you, too, could upgrade your lifestyle at a lower expense by moving to a new area.

As Tyson says, a disparity in property valuations means you might get a home you like much better at a lower price, just by changing venues.

“The truth is that property costs are intensely location specific. Someone leaving a high-cost area is often stunned by how much more house they could own for the same money in a cheaper city,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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