home

Pointers for Those Pondering a Move to a Faraway Suburb

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 19th, 2021

Once her divorce was final, a health policy analyst in her 50s began earnestly seeking new housing. Her quest? To leave her petite urban apartment for a spacious place surrounded by lush greenery and gardens. Hence, she went house shopping in an exurban village far from Washington, D.C., where her office is based.

“This buyer wanted out of the city. She was sick of throwing money away on the cramped rental where she’d suffered through the pandemic,” says Stacy Berman, the real estate agent who helped the analyst navigate her housing search.

Given that buyers greatly outnumber sellers in her region, the woman faced fierce competition to beat out five rivals for the house she chose -- a 3,000-square-foot property with all her favored features. Her bid even included a generous “escalator clause” promising to exceed the next highest offer.

This analyst is hardly alone in her quest to live in a large way -- miles away from an urban core. Many who’ve been teleworking in tight quarters through the worst of COVID-19 long for the pleasures of semi-rural living.

But as the country begins emerging from the pandemic, real estate specialists recommend that many with city jobs consider the implications of living far from their places of employment.

“What if you’re called back to the office full-time or even just a few days per week? Are you really ready to accept a long and tiring commute to get back to your leafy paradise?” says Eric Tyson, the co-author of “Home Buying Kit for Dummies."

Tyson notes, however, that for many purchasers, the benefits of country living are well worth the potential hardships of a long commute.

“Big families especially relish the joys of having plenty of bedrooms and yard space for the kids to play. And there are obvious cost savings when choosing to live in an outlying area,” Tyson says.

Here are a few pointers for buyers considering the purchase of an exurban home:

-- Avoid communities that are logistically challenged.

Buyers seeking large homes often consider outer suburbs, where property is more affordable. The idea, real estate agents say, is to “drive until you qualify.”

But James W. Hughes, a housing analyst, says worsening traffic congestion has caused some buyers to question the desirability of living in an outer suburb.

Perhaps you imagine that you’d be willing to endure a long commute. Still, for work/life balance in the long run, Hughes advises against buying a house that’s more than a 30-minute drive from an employment center. Remember that those who choose a closer-in suburb also stand a better chance of selling well when it’s their turn to move.

-- Choose a neighborhood with an excellent elementary school.

Much has been made of the power of strong neighborhood schools to hold up real estate values over the long run. Hughes, a professor at Rutgers University, says a top-rated elementary school is especially important.

“Even more than the middle or high school, an excellent elementary is something families seek out when they’re moving,” he says.

How can you be sure the house you buy will be served by a high-performing elementary? Real estate agents are reluctant to characterize schools with descriptive adjectives. But they can quickly assemble reams of statistics, such as test scores, that will let you compare one school to another. Or you can find such information yourself by going to the local school system’s website.

-- Look for a solidly built house if you’re buying brand-new.

Abraham Tieh, a real estate broker in Houston, notes that the homebuilding industry is dominated by small to mid-sized entrepreneurial companies. And these firms vary widely in the quality of their workmanship.

How can you identify subdivisions where the builders took extra care? One way is to closely examine the interior detailing in a house.

“You can’t see behind the walls of a house that’s already built. However, you can see if the cabinetry and wood trim were well finished. Also, you can judge whether the builder used long-lasting roofing materials or the cheapest available shingles,” says Tieh, a past president of the National Association of Exclusive Buyer Agents (naeba.org).

To further assess construction quality, he recommends you go door-to-door in any new subdivision you’re considering, to ask questions of residents.

“People already living in the neighborhood will tell you straight out if there have been lots of problems with the builder or if major construction flaws have surfaced,” Tieh says.

While you’re at it, he says you should survey the neighbors on the energy efficiency of their homes. For instance, ask them how much they must typically pay monthly for gas and electric service and whether their homes were outfitted with airtight, energy efficient windows.

“Utility costs should be of critical concern to anyone moving into a very large home,” Tieh says.

-- Think through your reasoning for seeking an oversized place.

Families with young children typically favor large houses because of all the advantages they offer in terms of lifestyle.

But Hughes says even as the pandemic fades, it’s only a minority of buyers who are willing to accept a property in a deep suburb in exchange for extra space. Still, if you’re among them, you can probably count on the appreciation potential of your large property, so long as it’s solidly built.

“A segment of the population will always prefer big houses -- just as they’ll prefer big cars if they can afford them. In America, bigger is nearly always better,” Hughes says.

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

home

Aspiring Homebuyers: Should You Persevere or Back Off?

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 12th, 2021

It’s an unnerving, disorienting time for would-be homebuyers. In many popular neighborhoods, prices are still rising, and competition for scarce properties remains intense. This is causing some to postpone a purchase.

Take the true story of an income-limited couple in their late 20s who desperately want to move from a fourth-floor apartment to a detached house with a fenced yard for their dog. Indeed, they recently found a place to their liking and put in an offer. Yet after losing out to seven other bidders, they felt so discouraged they dropped out of the market entirely.

“These buyers have moved to the sidelines for six months at least,” says Ashley Richardson, the Long & Foster real estate agent representing the couple.

Is it wise for most motivated buyers to step back from the market in hopes that prices will at least plateau for a while? Richardson thinks not.

She reasons that given demographic trends -- and the reality that millennials are now in their peak homebuying years -- demand for property will remain strong and prices should continue to advance, even if currently low mortgage rates rise.

“Yes, the market is super-tight, but more listings should be available this summer for those who hold out,” says Richardson, who is affiliated with the Residential Real Estate Council (crs.com).

Economists who track housing markets are uncertain whether price gains will ease somewhat as inventory levels gradually begin to improve. One such economist is Danielle Hale of Realtor.com, the home listing company.

“Prices are still continuing to rise, and homes are selling quickly, thanks to still-limited inventory,” Hale says.

Given the conflicting trends in the overall housing market, it’s not surprising that aspiring buyers are conflicted in their own assessments as to whether now is a good time for a purchase.

According to a Gallup Poll conducted this spring, 71% of U.S. adults expect the average price of houses will increase by next year. Only 10% believe home values will decrease.

At Fannie Mae, the national mortgage company, a survey index that tracks homebuyer sentiment reflects a recent decline in optimism

“Unsurprisingly, respondents overwhelmingly cited the lack of supply and high home prices as primary reasons for their pessimism,” says Doug Duncan, Fannie Mae’s chief economist.

Of course, all buying decisions are personal, and market conditions vary depending on the target community where you hope to buy. That’s why real estate specialists urge would-be purchasers to factor in their own preferences before deciding when to seek a home and how much to spend.

Here are a few pointers for buyers:

-- Consider your household economics before setting buying plans.

Would buying a well-priced home in a strong neighborhood be a good financial bet for your household if your monthly mortgage payments are more than you can afford? Absolutely not, says Eric Tyson, a personal finance expert and co-author of “Home Buying for Dummies.”

Despite stiff lending standards, he says it’s still possible for many buyers to qualify for a larger mortgage than their family finances warrant, thereby placing them at risk of a future default. That’s because your lender knows less about your obligations and spending habits than you do.

Before committing to any home purchase, it’s always smart to review your budget and assess your level of employment security. Is your current job at risk? Do you have easily marketable skills that would allow you to quickly get another job if you had to?

-- Investigate the area where you’d like to buy.

As good as they are, national forecasts are of less value to you as a would-be buyer than is information that helps you assess the relative strength of the area where you’re contemplating a purchase.

To locate the parts of your metropolitan area that have the best prospects for future appreciation, Tyson suggests you start with a regional map. On this, pinpoint major employers -- such as corporate headquarters and military bases -- where jobs are expanding. Locate communities with top public schools. Also, identify neighborhoods served by public transit lines.

-- Scope out neighborhood property values before you bid.

Researching relative property values before you put in an offer on a home is critically important in the current market environment, says Fred Meyer, a veteran real estate appraiser and broker.

“As always -- but especially now, with home prices changing dynamically -- it’s imperative you develop a knowledge of price trends in your area, including the most recent sales,” Meyer says.

But data on comparable sales won’t give you the whole story. These days, you also need numbers to track the direction of the market -- whether prices are heading up, down or sideways. Ask your agent to give you data on the median price of a home sold this past month versus the month prior. Also ask for median price comparisons on an annual and yearly basis. These statistics should give you a good feel for the trend. Use these data when crafting a bid for a property you like.

“No matter how competitive the market, it’s always worth the effort to do your research,” Meyer says.

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

home

Prepping a Home for Sale While the Market Is Still Hot

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 5th, 2021

Last year, a couple in their 30s -- a professional puppeteer married to a graduate student -- moved to a two-bedroom city condo. The purchase by the income-tight couple was largely thanks to the couple’s parents, who doted on their 2-year-old grandson.

The young family had planned to stay in the condo for years. But that was before COVID-19 and the birth of their second child. Suddenly, the condo felt extremely crowded.

“Quarantine taught us we really need a whole lot more space. For months we’ve been smashed together and dreaming of a house with a big kitchen and a yard where we could raise puppies,” the husband says.

Again with a promise of help from their parents, the couple recently began laying plans to sell their city condo in favor of a suburban property with at least 2,500 square feet of living space. Their first step involved calling a trusted real estate broker for advice.

“The broker told us there has literally never been a better time in history to sell residential property because right now there’s a pitiful shortage of available homes. But she also told us that to get top dollar, we’d have to hurry to prep our condo for market while sellers still rule,” the husband says.

Danielle Hale, chief economist for Realtor.com, the home listing service, doesn’t know the family in this true story. But she understands their urge to sell promptly, given the dramatic rise in property prices. Indeed, median list prices for homes are now 18.7% higher than last year, marking 35 consecutive weeks of double-digit price growth.

“For sellers, getting in early optimizes odds of a quick sale at a good price before there’s too much competition,” Hale says.

Still, the family in this example has plenty of work to do to ready their 90-year-old condo for market. Their floors need refinishing, and their kitchen cabinets need repainting. But a still more laborious task awaits the family: decluttering their place, which is crammed with children’s toys, baby items, books, kitchen gear and other possessions.

Virginia Barkley, a professional organizer and author of “Clutter Busting for Busy Women,” recommends that would-be sellers call in reinforcements to help make their property show-worthy.

“It makes a huge difference to get outside help with such a big undertaking,” she says.

Barkley, who previously worked in the deadline-oriented field of film and television production, says the key to a successful home-streamlining project is to plan ahead and maintain a positive attitude.

“You have to set a drop-dead deadline for yourself. And every single day you have to remind yourself of your vision for the future,” she says.

Here are a few tips for sellers:

-- Face the reality that decluttering is essential.

Eric Tyson, co-author of “House Selling for Dummies,” says would-be sellers who fail to downsize their possessions are at risk for substantial penalties.

“Even now, buyers are tremendously resistant to any place loaded with too much stuff because they can’t picture themselves living there,” Tyson says.

Many people are still living in their home while it’s on the market. Still, Tyson says it’s critically important that they pack away excess belongings until the property is sold.

If you need more motivation, Tyson recommends you call in a moving company for an estimate on the cost of hauling all your unsorted belongings to your new location.

“The cost to transport all your stuff should be enough to motivate you through the purging process,” he says.

-- Don’t attempt to declutter more than one room at a time.

Martha Webb, an expert on home staging, says you’ll go crazy if try to battle clutter on several fronts simultaneously. Instead, she counsels you to take on just one space at a time, starting with your master bedroom and clearing out closets in this room first.

“Having ample storage, including large closets, is a huge issue for contemporary buyers. ... Once you’ve cleared out enough, you should be able to see the back wall of your closets,” says Webb, the author of “Dress Your House for Success.”

-- Dedicate special attention to your kitchen.

Webb says most home shoppers won’t routinely look inside the furniture that stores your clothes. But many will open your kitchen cabinets.

“The last thing you want is for buyers to see a kitchen so crammed with items that they’ll think it lacks sufficient space for their own dishes and food,” she says.

After you’ve removed all the superfluous items from your kitchen storage areas, clean out the cabinets and replace only those pieces you absolutely need for everyday use.

-- Show respect when clearing children’s bedrooms.

Young children feel an understandable sense of alarm at the notion that many of their toys will be packed up and put away until your move is complete.

How can you calm your children’s fears? Webb suggests you transform the process into a game.

“Tell the children they can choose a few special toys and books to keep in their rooms until the move occurs. Mention that they can use these items -- along with the ones you’re putting in boxes -- for a ‘toy party' in the new house,” she says.

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

Next up: More trusted advice from...

  • Amid Recent Bank Failures, Are You Worried?
  • Wills: Should You Communicate Your Wishes With Your Children?
  • IRS Offers Additional Protection Against ID Theft
  • Botox Injections One Way To Treat Hyperhidrosis Sweating
  • Donating Kidney Does Not Affect Life Expectancy
  • Exposure to Rabies Comes From Contact With Saliva
  • Your Stars This Week for March 19, 2023
  • Your Stars This Week for March 12, 2023
  • Your Stars This Week for March 05, 2023
UExpressLifeParentingHomePetsHealthAstrologyOdditiesA-Z
AboutContactSubmissionsTerms of ServicePrivacy Policy
©2023 Andrews McMeel Universal