Archive for April, 2007
Really, Really, Really Bad Tenants
April 30th, 2007 categories: Investors/Landlords
I’ve been lucky so far with my tenants but my in-laws have not. They just moved out tenants they’ve had for a couple of years and it isn’t pretty. If you want to be a landlord, look at these photos. While I can’t share with you the before pictures, I can tell you that the house was built in 1974 and was mostly remodeled 4-5 years ago, before these tenants moved in.
Luckily for all of you, the Internet is not capable of bringing you the full experience of all the senses. On the cat urine smell-o-meter scale, this house was a 10 on a scale of 1-10. (Remarkable, since the tenants were not allowed to own cats!)
Ta da! Here’s the stunning entry into the house. What you can’t see is me holding my nose - this was the cats toilet room. Cat pee and plywood - not a good combo. All of the plywood and sheet-rock will have to be removed because it is swollen with liquid.
At least they tried to fix the hole in the wall with some Spackle or is that toothpaste? This is one of many holes.
The tenants really had a thing for punching and kicking holes into the walls and doors. Every single door has to be replaced.
This was one of many closets filled with garbage. Under and among all of it and on all the carpeting were little petrified kitty poo packages. The yard was also littered with trash and the basement was full of more garbage, and you guessed it, petrified kitty poo.
Proof that the tenants owned a vacuum cleaner (it’s the little yellow thing on the floor) but just decided to never actually use it.
Amazingly enough, the tenants were very sure they were going to get their security deposit back. I don’t think so - the repair, cleaning and trash removal expenses for this house will cost thousands of dollars.
PS- They also left 9 cats behind. The neighbors are feeding them until I can trap them, bring them to a vet, spay/neuter them and find them homes. Anybody want a cat?
| Discussion: 11 Comments »
Vacancy Rates in the Northeast - What the numbers mean for the real estate market
April 29th, 2007 categories: Real Estate Market
According to Inman News,
The homeowner vacancy rate, a gauge of the number of unoccupied units for sale vs. the total homeowner inventory, was 2.1 percent (the national average) in first-quarter 2006 and has risen for seven consecutive quarters. A high vacancy rate can indicate an oversupply of housing units while a low vacancy rate can indicate a shortage in supply of housing units.
The homeowner vacancy rates in the Northeast are the best in the nation, at 1.9% for the first quarter of 2007, compared to 3.2% in the South, according to a recent report by the US Census Bureau. 1.9% represents an increase from the first quarter of 2006 when the rate was 1.7%.
While we are certainly in a buyer’s market in the Northeast, the homeowner vacancy rate seems to indicate that our buyer’s market is not as deep as it is elsewhere.
The rental vacancy rate in the Northeast was 7.1% in the first quarter of 2007, a decrease of .2% from the first quarter of 2006. The South had the highest vacancy rates, at 13.1% and the West had the lowest at 6.5%. This means that rentals will be a little more difficult to find and rental rates are likely to continue to edge up higher.
| Discussion: 1 Comment »
How’s the Neighborhood and Why Swear Words Don’t Sell Houses
April 27th, 2007 categories: Home Buyers
Last week, I was driving to an appointment to show a young couple a property in the Rockville section of Vernon. It’s a beautiful Saturday - I’ve got my sunroof open, windows down in my car. If you’re familiar with Vernon at all, it’s a relatively affordable suburban community next to several pricier towns like Ellington and South Windsor. Rockville is the old commercial/downtown part of Vernon that has been trying to reinvent itself as the historic district.
We drive past a few police cars, then a very loud and lively house party, then more police, then more people out in the street yelling and then we pull up to the property.
As we’re getting out of the car at the house, several streets away from the previous police activity, people are everywhere - yelling at each other, at their kids, at the dogs, at themselves, who knows. We look around the house and we can hear sirens, music blaring and several police cars go speeding by. As we’re leaving the house, a naked kid runs through the neighbor’s back yard and a neighbor yells to another neighbor, “What the F&%! is going on!?”
I love a good swear word just as much as the next person but swears don’t sell houses.
No offense to Rockville residents but R.E.M. did a song called “Don’t Back to Rockville,” and I’m beginning to think that they had this Rockville in mind when writing the chorus.
My clients didn’t need to ask, “How’s the Neighborhood?” They are from the area and know Rockville. And, our showing didn’t do anything to improve their perception.
But when I have someone ask me about a neighborhood, I can’t and shouldn’t say what I really think, whether it’s good or bad. While my clients are seeking out my opinion, I cannot legally say anything that may be perceived as steering or discriminatory. In addition, tastes are completely subjective. My perception of a neighborhood may be based on some experience that has nothing to do with actual facts and figures.
The right thing for me to do is to direct my clients to finding out the answers for themselves, since legally I can’t say very much.
- —Drive through and around the neighborhood at peak activity times - during the week around 6 PM and weekends.
- -Pay attention to the condition and types of properties in the immediate vicinity. Are neighbors mowing their lawns? Are there a lot of kids playing in the street? Does the property conform to its surroundings? If it’s the only single-family on a street of multi-families, then the value of the single-family is negatively impacted by the properties around it.
- —Call the local police station and ask to speak with someone about getting crime statistics for the neighborhood. I did this before buying a property and the officer I spoke to was very helpful, explaining why certain figures were high or low and what they meant. He also told me that their department almost never gets calls for this information by prospective homeowners and he was pleasantly surprised that I had called. This information helped me to make an informed decision about buying property in a neighborhood that concerned me.
- —Sites like Family Watchdog and the CT Sex Offender Registry can give you information about sex offenders in the area.
- —The EPA can give you information on the environmental conditions of an area.
- —For demographics information, you can visit the US Census site or CT has a site where you can view town profiles.
- —For school information, the CT Department of Education has a site with school profiles by district as well as by individual school. Great Schools also has some good information and features parent reviews.
| Discussion: 6 Comments »
March 2007 MLS Statistics for Greater Hartford
April 26th, 2007 categories: Real Estate Market
Here are the most recent statistics for the Greater Hartford region, from the Greater Hartford Association of Realtors.
As you’ll see in the data, single-family housing inventory is up. The time it takes to sell a home is increasing. But, the average home sales price and median sales price are still moving upward.
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Home Buying 101 - Step 11: Shop for Homeowners Insurance
April 23rd, 2007 categories: Home Buyers
This is the eleventh post in a series of twelve on buying a home. Click here for other posts in this series.
Once the home/condo has passed inspection and any repair items have been negotiated, you can begin to shop for homeowners insurance. Lenders require that you carry homeowners insurance but you can still shop around for the best rate and coverage. You will need to have proof of an insurance binder at closing. Here are some things to consider:
According to the Federal Citizen Information Center, you may be able to save money using some of these tips.
- –Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
- –Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material. Persons over 55 years of age or long-term customers may also be offered discounts.
- –Insure your house NOT the land under it.After a disaster, the land is still there. If you don’t subtract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.
- –Don’t wait till you have a loss to find out if you have the right type and amount of insurance.
- –Make certain you purchase enough coverage to replace what is insured. “Replacement” coverage gives you the money to rebuild your home and replace its contents. An “Actual Cash Value” policy is cheaper but pays only what your property is worth at the time of loss-your cost minus depreciation for age and wear.
- –Ask about special coverage you might need.You may have to pay extra for computers, cameras, jewelry, art, antiques, musical instruments, stamp collections, etc.
- –Remember that flood and earthquake damage are not covered by a standard homeowners policy. The cost of a separate earthquake policy will depend on the likelihood of earthquakes in your area. Homeowners who live in areas prone to flooding should take advantage of the National Flood Insurance Program at www.floodsmart.gov.
For more detailed information, you can visit this link at Federal Citizen Information Center’s website, which will give you additional tips on how to save on your homeowners insurance.
Lastly, one question I’m asked often is whether shopping around for insurance will hurt a buyer’s credit score. The answer is probably not. Your lender will recognize the fact that you need to buy homeowners insurance before you can close and that the insurance companies will runa credit check on you. As long as the inquiries are of a similar nature and are made within a limited period of time, buyers should see no negative impact on their credit.
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