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Townhouse Tips for Easy Living

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | August 29th, 2018

When it comes to housing trends, two are in near-perfect sync right now. Homebuyers suffering from sticker shock are increasingly interested in the price-per-square-foot advantage of choosing a townhouse over a detached property. Meanwhile, builders struggling with rising costs are increasingly favorable to townhouse construction.

Although townhouses now represent just 13 percent of all new single-family homes, their market share is gaining steadily, says Danushka Nanayakkara, a senior economist for the National Association of Home Builders (nahb.org).

“Millennials want median-density residential neighborhoods in walkable environments, where townhouses are more common. This is now the largest population cohort of homebuyers,” Nanayakkara says.

Though she notes that townhouses typically come with smaller yards than detached homes, this is acceptable to many first-time buyers in their 20s or early 30s. At the same time, developers save money when they build on the smaller lots that townhouses require.

Tom Early, a past president of the National Association of Exclusive Buyer Agents (naeba.org), says people pondering the purchase of a townhouse should seriously think through the trade-offs.

“Most townhouses are very vertical, and that translates to loads of stairs,” Early says.

And though townhouses often come with far less maintenance and upkeep demands than detached homes, there is a downside.

“Face it, because of all the rules, townhouses aren’t great for rugged individualists. For example, you’ll be barred from painting your front door fluorescent orange,” he says.

Here are a few tips for those contemplating a townhouse purchase:

-- Place a premium on location.

It can be tiring to hear that location should beat all other factors when it comes to choosing a home. But this principle remains true, says Eric Tyson, a personal finance expert and co-author of “Home Buying for Dummies.”

Tyson urges you to look for a neighborhood served by high-quality schools, even if you have no plans for children. Also, he encourages you to seek easy access to such popular amenities as movie theaters, cafes and stores. In addition, look for an area near well-rated public transit.

“Already, we’re seeing close-in communities appreciate faster than those far outside metro areas. This trend will only accelerate in the future,” Tyson says.

Even people who would prefer a detached house might consider buying a townhouse in a coveted neighborhood if that’s all they can afford there. That’s because over time, as Tyson says, you can anticipate that the townhouse in the premier area will be a better investment than a traditional detached home in a weaker area.

-- Look for a townhouse with an expansive interior.

Nowadays, most buyers strongly favor an open, airy, bright house. But many townhouses have relatively few windows, are narrow from side to side and deep from front to back.

“To get a more open feeling, try to find a townhouse that’s wider than average. Also, look for one where the rooms are square rather than rectangular and one with larger-than-average windows. But remember that big windows typically mean higher energy costs,” Early says.

Another way to obtain a more open, airy feeling in a townhouse is to buy one with high ceilings.

“Luckily, lots of new townhouses have ceilings that are at least 10 feet high or higher. That way, the rooms seem larger and people feel less cramped,” Early says.

-- Don’t trade off adequate parking.

New townhouses are typically built to give each unit a one- or two-car garage. That means your own parking needs should be met. But what about visitors to your home?

“Many people are unhappy after moving to any place that forces their friends and family to hunt and hunt for parking,” Early says.

He tells clients the best way to scope out the parking situation near a townhouse complex is to ask those already living there about their experience with parking in the common areas of the community.

-- Look for a harmonious community.

In nearly all townhouse communities, residents are bound together through a residents' association. As Early says, the quality of leadership in that group can make a major difference for residents there.

"Search for a community where people can reach consensus harmoniously rather than through arguments and petty disagreements,” he says.

Well-functioning associations set aside money for major expenses, like the replacement of a roof or renovation of a pool house. Otherwise, everyone living in the community could be hit with a special assessment -- which could mean a steep increase in your monthly association fees.

To investigate the operations of a townhouse association, Early suggests you ask for minutes of its last three meetings to see if major disputes are pending within the organization.

“Don’t move to a place where neighbors are squabbling or you’re at risk for a bad case of buyer’s remorse,” he says.

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

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The Do's and Don'ts of Downsizing

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | August 22nd, 2018

A couple in their 60s -- a psychiatrist married to an attorney -- began daydreaming about retirement the day their youngest child graduated from high school. They wished for the freedom to travel abroad and enjoy waterfront living in a low-upkeep condo overlooking Baltimore’s Inner Harbor.

After selling their large, upkeep-heavy colonial and buying a waterfront condo, the couple was pleased with their new digs and relished the freedom from maintenance chores, says Ashley Richardson, their real estate agent. What’s more, their downsizing maneuver yielded the pair a tidy profit, which is hastening their plans to retire.

“Older people who are open to change about moving are happier in the long run than people who can’t bear to move,” says Richardson, who’s affiliated with the Residential Real Estate Council (crs.com).

Natalie Conrad, a professional organizer and author of “Organize to Downsize,” a step-by-step workbook for those seeking to scale back, says many triggers prompt older owners to sell. One common impetus is a health setback, such as the need for a knee or hip replacement. This forces many owners to face their need for a one-level property that doesn’t require them to climb stairs to reach their bedroom or take a shower.

“Once people start having physical limitations, they begin seeing their big houses differently. Many people wish to live closer to their grown children or go to a retirement community,” Conrad says.

Some housing economists say an increasing number of older homeowners are now rushing to sell due to rising mortgage rates and economic uncertainty as to whether the current strong market is sustainable.

Lawrence Yun, chief economist for the National Association of Realtors (realtor.org), says the current picture for sellers is a mixed one.

“As long as economic conditions maintain current levels, there’s still a chance for sales to break out this year. However, with mortgage rates trending higher, it will only happen if supply levels improve enough to cool the speedy price growth in a majority of the country,” Yun says.

Here are a few other pointers for downsizers:

-- Search for a location that feels right to you for positive reasons.

Lin Schreiber, a life coach for retirees, says, “There comes a point in many lives when there’s a yearning to reorder priorities. People downsize for the chance to pursue other options.”

As they head toward retirement, many people focus primarily on the annoyances and aggravations they’ll escape once they’re liberated from their job. But in addition, Schreiber urges clients to concentrate on the options that await them as they reinvent their lives.

“For example, if you think you’d like to live in Costa Rica, travel there and talk to retired people about what life is like in that country. Give yourself permission to explore all the possibilities that interest you before making a decision,” Schreiber says.

-- Think through whether you’d like to live in a community with lots of rules.

Schreiber and her husband, a software specialist, once lived in a planned community where the homeowners association dictated many lifestyle rules. But after just three years there, they were so rattled by all the dictates that they moved to a more modest townhouse with friendly and easygoing neighbors.

Looking back on their experience, the couple wishes they’d investigated further before buying into the planned community, where Schreiber says neighborhood leaders proved bothersome and intrusive.

“People there were always quibbling over small disputes about the appearance and operation of the community,” she recalls.

Though she allows that some people appreciate a strict neighborhood association that can help protect their property values, she says others find life in such a community unpleasant.

Schreiber urges those making a major housing transition to ask questions about the internal culture of a community before they buy a home there -- to ensure that it’s in accord with the lifestyle they have in mind.

-- Think through the role you want your adult children to play going forward.

Lots of downsizers approaching retirement have children in their 20s or older. And according to Conrad, these retirees vary widely on the role they’d like their offspring to play in the next phase of their life.

“As they get older, some people become weary of the child-raising thing. Yet other empty-nesters feel a void in their lives and wish to see more of their grown kids and grandkids,” she says.

Those who want their adult offspring to play a major role in their lives are likely to be happier moving to a property with enough bedrooms to accommodate their kids during overnight visits. But those who wish to discourage their children from lengthy stays -- or from moving back home -- might prefer a small condo with just one or two bedrooms.

“This is a very personal choice, but one you should think through before moving,” Conrad says.

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

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Staging Tips for a Quality Sale

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | August 15th, 2018

The house was a bland, 1980s McMansion in the suburbs with nothing special to make it stand out. Even so, its owners, both senior-level financial consultants in their early 60s, wanted to sell quickly to take job offers overseas. Hence, they accepted their real estate agent’s advice and hired a home stager to make their place show-worthy.

“A professional stager can hand-over-fist get sellers more money than they could get for an unstaged home,” says Stacy Berman, the seasoned real estate agent who represented the couple.

Berman, who’s been selling property since 2002, says talented stagers can give a nondescript, older home “that wow factor” -- making it more appealing to younger buyers.

In the case of the financial consultants’ home, all the rooms had been painted in a hodgepodge of different colors, including one bedroom in purple. Wall-to-wall carpet was hiding handsome hardwood floors. And the entire property was crammed with excess furniture.

The whole staging process -- painting, ripping up the carpet, etc. -- was completed in a few weeks for a couple of thousand dollars. Once done, the property sold quickly and for $50,000 over list. Indeed, it fetched the highest price ever recorded for a house in the couple’s neighborhood.

Sid Davis, a real estate broker and author of “A Survival Guide to Selling a Home,” says savvy sellers realize that even in hot markets where demand is very strong, sellers are very picky.

Of course, not all sellers can afford the services of a professional stager beyond a single one- or two-hour consultation. Here are a few tactics for sellers to keep their presale expenses under control:

-- Grasp the power of a paint brush in your hand.

Davis says home sellers can recoup at least three dollars for every dollar spent on paint and supplies for an interior redo. What’s more, a freshly painted property will change hands more quickly than one without such a cosmetic uplift.

Obviously, you can always hire a painting firm to do the work. But Davis contends that most homeowners can become competent painters with a little effort.

Davis recommends that novice painters seek out guidance from a local home center store or paint company retailer. Also, the websites of major paint companies can be helpful.

-- Donate excess belongings to charity.

“Decluttering is absolutely vital because buyers can’t picture themselves living in a crowded house, and most will automatically reject such a place,” Davis says.

But the reality is that many homeowners have great difficulty ridding themselves of items they no longer use. For such sellers, the clearing-out process is easier if they’re assured their surplus items will be put to good use.

Besides giving your extra belongings to charities, you can find willing recipients through The Freecycle Network (freecycle.org), a service for those seeking to “gift” items to others in the same area. (Membership is free and it also allows you to pick up items from others who live nearby.)

-- Place large pieces of furniture in a neighbor’s garage or a storage unit.

“If you’re still living in the house you’re selling, make sure you take away as much furniture as possible so people can see how large your rooms are. Big furniture distorts the look and scale of any house,” Davis says.

To make a dining room seem larger, he suggests that sellers remove china cabinets, along with extra leaves from the dining room table. Also, eliminate all but four dining room chairs.

In the living room, a few basics are sufficient for home showings: one sofa, one loveseat, a couple of end tables and lighting. Ideally, you’ll also remove a television with an exceptionally large screen -- at least temporarily.

“One of those huge TVs can really overwhelm a living room or den. The same goes for a giant bedroom suite that can dwarf your master bedroom,” Davis says.

Keeping furniture to a minimum makes it easier for would-be buyers to picture how their own furnishings would look in your space.

-- Ask your listing agent to conduct open houses for other local agents.

Davis believes traditional open houses offer few advantages for sellers.

“Honestly, the big winners from most classic open houses are the agents who hold them. That’s because they often pick up new clients during open houses,” he says.

A real estate broker since 1984, Davis recalls just two cases in which he found a buyer for a property through a traditional open house.

“Usually it’s just curiosity seekers and unqualified buyers who come through the average public open house,” he says.

Davis says a better way for your agent to promote your property is through special events designed solely for real estate pros, not the general public. Such “brokers' opens” can be very helpful in spreading the word about your property.

“The more agents who troop through your property, the better. If your home shows beautifully, they’ll spread the word and bring in their own home-buying clients,” he says.

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

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