Real Estate • Selling • December 24, 2020

What Factors Does a Seller Control?

by Doug McNeilly

What leads to a successful sale for a Seller? In short, working with the factors the Seller can control and working those factors to the Seller’s advantage: Condition, Marketing, Pricing, and Ease of Showing are the main factors that the Seller controls.

Condition – The more attractive your place – the greater the chance of attracting buyers. Challenging, is the best word to describe getting your home ready to sell. Ideally, you can move out. Paint the entire inside and stage the house to look like a Crate & Barrel furniture showroom. Sadly, myself included, that is not in the budget and not logistically possible for most Sellers. Next best option is to have your Agent go through your home with you to identify items that should be repaired or improved prior to going to market. Your Agent should be a local expert that knows what the market considers important (and what really doesn’t matter) and can help you get the repairs done reasonably and painlessly to help you prepare your home to show at its best.

Marketing – The better the marketing, the more attention the property will receive. At DougMcNeillyHomes all our properties have a Comprehensive Marketing Plan regardless of price. The most important elements are professional photographs, a virtual tour, and a customized social medial campaign. These items should be offered at all price points in today’s market place by Real Estate Agents. For vacant homes, strategies such as virtual staging should be a cost covered by the Agent. Depending on the price point of the home, the Agent might share in the cost of physical staging of vacant homes.

Pricing – The more compelling the price – the more attention you will get and a greater chance of attracting buyers. There are several factors that impact the selling price of a home. Conditions in the local, regional, and national real estate markets impact price. Unchangeable factors such as lot size, age and overall condition of the home, and square footage impact price. Value added items such as property features and amenities impact price. And, the listing and selling prices of comparable homes. And, most important, the Seller’s level of interest, energy, and motivation in preparing the property for market. Well priced homes generate immediate interest among buyers and agents. And, an offer within 14 to 30 days (or sooner). Which is exactly what you want!

Ease of Showing – Showings are typically scheduled in advance within a certain timeframe. However, there are no strict guidelines on how much notice an agent provides; sometimes they will call the day before; sometimes one hour before. When your home first hits the market, it is not atypical to have numerous showing requests that first week to ten days. Can you turn down showings? Of course, it’s your home. However, understand how buyer agents work with their clients. If that time slot is inconvenient for you, and you turn down the showing, chances are that the buyer will never see your home. Try not to risk losing the potentially perfect buyer be declining a showing unnecessarily.

If you maximize all four, you maximize your chances of success. The marketing launch is key to grabbing buyers already in the market. A key element of that is coming on market with a price that gets attention and excites Buyers. When you are selling your home, you are entering a beauty contest and a price war. Your Agent’s job is to help you win both!

Doug McNeilly is a REALTOR® with Coldwell Banker Residential Brokerage in Wayland, Massachusetts. He specializes in Wayland, Sudbury and the Greater Boston Metro West Area. He can be reached at doug.mcneilly@nemoves.com or www.dougmcneillyhomes.com

Buying • Real Estate • Selling • November 11, 2020

Lesser Known Massachusetts Residential Tax Credits

by Doug McNeilly

While Energy rebates are well known and tax credits for Solar are also well known, the tax credits for Lead Paint Removal and for Septic Repair or Replacement are not as well known.

Lead Paint Removal – Bottom line, lead paint is dangerous, especially to children. Much of our housing stock was built prior to 1978 when lead paint was banned. You can get a tax credit if you own residential property in Massachusetts and paid for de-leading (removing or covering lead paint). Nonresidents and part-year residents only qualify for this credit if the property is residential and located in Massachusetts. It does not need to be a principal residence in Massachusetts. That is good news for those with second homes or investment properties. There are several steps you need to adhere to with regard to properly identifying lead paint, testing, and removal. It is a regulated process. The tax credit can be as much as $1,500. If the credit is greater than the tax due, you can carry the excess credit forward for up to 7 tax years. Search on the State website site for Lead Paint Tax Credit. A house that is de-leaded or certified treated is worth more. Especially, investment properties.

Repair or Replacement of a Septic System or Cesspool – For this tax credit, you must own the residential property and it must be your primary residence. You’re allowed a tax credit for expenses to repair or replace a “failed” cesspool or septic system to comply with state requirements or to connect to a municipal sewer system. Part-year residents qualify for the full credit if the property is an owner-occupied principal residence in Massachusetts. As with any tax credit and dealing with the State, there are rules and steps you need to take. The good news? The credit is 40% of the cost (not to exceed $15,000) and the total amount of the credit cannot exceed $6,000. You can claim the credit for the year the repair or replacement work is completed. If the credit is greater than the tax you owe, you can carry forward the excess credit for up to the next 5 tax years. For Sellers thinking to sell a few years out and know that they need to replace the Cesspool or Septic System you might want to think ahead and take advantage of this tax credit. Search on the State website site for Septic Tax Credit.

Doug McNeilly is a REALTOR® with Coldwell Banker Realty in Wayland, Massachusetts. He specializes in Wayland, Sudbury, Natick, Framingham and the Greater Boston Metro West Area. He can be reached at doug.mcneilly@nemoves.com or www.dougmcneillyhomes.com

Real Estate • Selling • September 28, 2020

INDICATIONS THAT YOUR HOME IS OVERPRICED

by Doug McNeilly

There are typically five prices for a home. The price you want to get. The price you list at. The price at which you get showings. The price at which you get offers. And, the final sales price. My goal as a Realtor is to set expectations from the start so that the difference between the price the Sellers want and the final sales price is relatively narrow.

It is true that some homes take longer to sell than other homes for a variety of reasons, although if your home has been on the market longer than other comparable homes in the marketplace and has no factors that make it unique or limit the buyer pool (leading to a longer marketing time) you may be overpriced.

Most Sellers want to achieve the highest sales price the market will allow. This is only natural. If your property starts to linger on the market, you might start asking yourself if there is something wrong with your home, the marketing, or the agent you selected. The reason might not be straightforward or it may just be the price. Below are several common indications that your home may be overpriced.

You Selected the Agent that Provided the Highest Price – It is normal (and expected) that a Seller wants to obtain the highest price possible for their home. All Agents know this. Some Agents use this tactic to get the listing. That is their strategy. They get their sign out on the street and then slowly and continually ask for price reductions. Experienced Agents provide a realistic price and then back the pricing recommendation with examples of sold homes and current market level trends. At DougMcNeillyHomes, we provide Sellers with a range – often a 10% to 12% range – this provides Sellers with a price likely to get strong intertest to a price that is pushing the market.

You are Priced Higher (Much Higher) than other Homes in your Neighborhood – This is usually the first indicator you have a pricing issue. If you are priced – more than the house across the street, the house down the street, the house the next street over – then you are fighting an uphill battle. Active Buyers are often actively seeing homes and often have a better sense of current market value than Sellers have. Sellers should view homes currently on the market so they can see what Buyers are seeing. Often renovations or Sellers personal touches (which might have been expensive) often don’t return at 100%. If Buyers think your price is unreasonable, they might not even schedule a showing. Homes on the market over 6 months often sell at 85% of the original listing price – which probably was the correct listing price.

Other Homes in your Neighborhood have Sold – Removing other factors such as location, size, floorplan, and décor, you can blame the market, buyers, your Agent, maybe the dog that barks only during showings that lives across the street, although if other homes are selling that are similar to your home and at lower selling prices it might be that your pricing is off. Despite what reality real estate television may portray, even excellent agents can’t sell overpriced listings (unless they sell their own listings to their own buyers).

Lack of Showings, Lack of Internet Traffic / Social Media Response – Most homes get the majority of their interest in the first few weeks on the market – after that, active buyers in the market have passed your home by and you are chasing buyers new to the market. Homes need to have a comprehensive market plan – such as we offer at DougMcNeillyHomes. If the initial interest is lackluster – only a few calls, few or no showings, open houses with few to no attendees the price may be pushing buyers away. If buyers feel they need to make an offer at 90% or less of asking price, they likely will not bother to even make an appointment to view your home.

Related to actual showings are the number of hits your home is getting – viewings on the Multiple Listing Service, open rates to emails and social media posts, clicks on the single property website, views of the 3D tour or video tour of your home. Your Agent can track all this activity and report back to you. Initial activity is always high. Lack of initial activity might point towards a pricing issue. If the price is too high, it might be outside the search parameters of your target buyer pool.

No Offers – This is fairly clear, but when you have had lots of showings – say 25+, and the market has a low to average days on market or days to offer, then your price may be too high. All Sellers and Buyers expect to negotiate, but if Buyers feel their offer needs to be 90% or less of the asking price, they might not even bother to write an offer, feeling the Seller is unreasonable or will be offended by the offer. In hot markets, a few weeks might indicate a pricing issue, other markets it may be 3 months. This varies by market, but a longer time on market is not normally a positive. Vintages are for wine, not for homes.

You Have Received Offers, but Low Offers – You have received an offer; better yet, a few offers, but they are much lower than the asking price – say 90% or less of the asking price. This shows consistency in offers. And, if other similar homes are selling for less, Buyers are indicating that you might be priced too high. While a Seller might get offended by low offers, Buyers can’t and shouldn’t be expected to pay more than market value for a property.

Your Home has been on the Market Forever – Okay, maybe forever is too strong, although if you have been on the market longer than most homes, Buyers will notice. And, they will start to wonder why and then start to think that something is wrong with the property. Some homes take longer to sell – that is a fact – but that should be accounted for in the asking price. If you are priced higher than other homes, Buyers will pass you by and focus on homes that are priced to market.

Price is always paramount. Buyers have more information than ever. Trying to test the market or leave room for negotiation often does not work in the Seller’s best interest. A Sellers best option to get their home sold is to hire an experienced local agent and price the home correctly from the start.

Buying • Real Estate • Uncategorized • August 30, 2020

WHAT IS IN A CONDO FEE

by Doug McNeilly

To start….buying a condominium can be a great way to get more square footage compared to a single family home, although in the Greater Boston housing market, condominiums can be just as expensive as a single family home and have equivalent square footage. Condominiums are appealing for those who want maintenance-free living. In the end, having a condominium is a decision to live where you agree to use common funds for the betterment of the community. You pay into those common funds via a condo fee. Buyers often ask about the main components of the condo fee.

Condo fees vary both in cost and what they cover from association to association. Generally, they relieve the homeowner from exterior and yard maintenance. All owners must pay the fee – which is normally paid monthly. The fee is usually determined based on the size of the unit and amenities offered in the complex – amenities such as a pool, clubhouse, elevators, etc. – can add to the cost and are set annually by a Board of Directors that are also owners in the complex. Fees typically go up over time as expenses increase. There are two main areas the condo fee goes towards – ongoing / recurring expenses and reserves

Ongoing / Recurring Expenses
These are expenses that are paid weekly, monthly, and annually. They are normally ongoing expenses that are planned. Items such as seasonal landscaping maintenance / grass cutting, snow removal, cleaning of the common areas, utilities (for the common areas), annual inspections / maintenance, garbage / recycling, association insurance and liability insurance, taxes on the common elements, management fees, and more depending on the complex.

Reserves
Reserves are for items that are not ongoing or recurring but are generally planned and are larger expenditures. Funds are put aside each month little by little so when the funds are needed, the funds are available. These are typically known expenses that can be planned for. Items such as a roof replacement, painting, repaving, and other items would be included here. Also, reserves cover variances on planned expenses such as an excessively snowy winter or unplanned expenses such as an insurance deductible.

Special Assessment
The association may charge additional fees if there are insufficient funds to cover major improvements. Ideally, the condo fee should reflect planned future expenses, as these are known. An association with a history of special assessments might reflect less than ideal management practices. Ideally, there should be no special assessments other than extraordinary events such as a natural disaster or a large increase in scope to a planned project.

What Condo Fees Don’t Cover
Unit owners are responsible for the repair and replacement and upkeep of everything inside the condo unit and sometimes the windows and doors. The Association often covers insurance for the building and common area, but not for the personal contents of the units and the fixtures inside the units. Your insurance professional should review the master policy to ensure there are no coverage gaps between the master and individual policies.

This is meant to be a high-level overview of the different parts of the condo fee. Upcoming articles will go into more detail. Overall, the condo fee, other than the management fee, reflect what most home owners pay out on their own properties – day to day expenses are covered by the monthly budget and larger expenses are budgeted for over time.

Buying • Real Estate • July 30, 2020

SHOULD YOU WAIVE THE HOME INSPECTION?

by Doug McNeilly

The market around Metro West Boston is starting to heat up again in certain price segments. And, bidding wars are starting to emerge again in those certain price segments. And, Buyers are starting to drop some contingencies when making offers. So, should a Buyer waive the Home Inspection? The sort answer is NO. Unless the Buyer has experience and is knowledgeable in the structural and mechanical systems that comprise a house, they should defer to a licensed Home Inspector.

The average Home Inspection costs about $800 to $1,200 currently. That costs increases with additional items such as pest, radon, lead, water, soil, and other associated tests.

What is the average Home Buyer to do?

First, get knowledgeable.
You don’t have go get your Contractors License, but do gain an understanding of the major structural and mechanical systems. The book – The Confident House Hunter – by Dylan Chaulk is a great resource to get acquainted with the various types of homes and systems. This will allow you to view a home, looking past the new Kitchen and gleaming hardwood floors, to what really matters.

Do a Little Research
Get an idea on the age and condition of the furnace, hot water heater, air conditioning unit, roof, windows, etc. Spend ample time at the Open House or Showing. See if there are manufacture dates on the furnace, hot water heater, windows, etc. Bring a flashlight and poke around in the basement and attic. Look for cracks in the foundation, signs of current or past water penetration. Outside, is there any rotted wood? Visit the Town Hall and review the file for the home at the Building Department. This all helps to make a more educated guess as to the condition of the property.

Waive the 1st $10,000 or $20,000 of Inspection Items
If you are in a multiple offer situation, the Seller is unlikely to fix anything or offer a concession unless it is a major structural / mechanical / safety issue. Thus, waiving the 1st $10,000 or $20,000 really does not matter, but it sends an important message to the Seller that you will not use the Inspection to get the price back down. And, it allows you to back out if the issues with the home are insurmountable. You might just beat out a higher offer that has a full inspection contingency.

Conduct a Pre-Inspection
Prior to submitting an Offer, conduct a Pre-Inspection. The Seller will need to agree to this. Depending on timing, this might not be possible. This can allow the Buyer to make an Offer waiving the Home Inspection. The Seller may be more at ease because they do not need to worry about the outcome of the Inspection. The Buyer does incur the cost of the Inspection though.

While I never recommend a Buyer waive the Home Inspection, using some of the items listed above may help in a situation were a Buyer feels pressure to waive the Home Inspection but elects not to.

Buying • Real Estate • June 30, 2020

WHAT EXACTLY IS A CHEF’S KITCHEN?

by Doug McNeilly

Often you see listings that describe the Kitchen as being a Gourmet Kitchen or as being a Chef’s Kitchen. What exactly does this mean? Real Estate Agents have a knack for using descriptive wording. Too often, these words are used to describe a Kitchen that is perfectly nice, updated, and looks great – but falls short of the level of what is considered gourmet or chefs caliber.

What is a nice Kitchen, but not gourmet or chef’s caliber? Updated in the last few years. Solid surface counters – quartz, granite, etc. Stainless Steel appliances, and ample Counter Space. Nice, but not what is considered gourmet or chef’s caliber.

What is a gourmet or chef’s caliber kitchen? There is no one definition, but should offer everything a professional chef – or at least a very committed amateur – would need to reach their cooking goals.

Home Professional Range – There are several brands. Major brands include: Thermador, Wolf Viking, etc. Gas is normally considered the standard. These ranges are larger than the normal 30” range being a single 36” oven range or 48” double oven range up to a 60” range. These larger ranges will have multiple burners plus a grill or griddle (or both with 60” ranges). Over the range should be a professional hood to get cooking smells and smoke out of the house effectively. Some Kitchens will have a Range Top and Wall Ovens versus just the Range. Both meet the criteria of gourmet or chef’s caliber. Multiple ovens, including convection or steam for quicker, more efficient cooking can be expected.

Refrigeration – Typically you will see Refrigerator or Freezer Columns. Sometimes multiple column units. Wine refrigeration or Beverage refrigeration is also common. In islands, secondary Refrigerator or Freezer Drawers are common. Typically, higher end brands such as Sub-Zero, Thermador, Liebherr are seen.

Islands, Ample Work Space, Work Zones – One or two islands are common. Dedicated work zones are also common. Prep, cooking, and clean-up zones are well definded. Multiple sinks – prep/cooking and clean-up are required. Often two dishwashers can be found.

Warming Drawers, Other Appliances – Other built in appliances are common such as Warming Drawers, secondary Wall Oven, Microwave Drawers versus having the microwave above the range. The microwave may also be above or below a wall oven.

Pantry – A dedicated walk-in pantry can be expected. Also, in the pantry can be located secondary appliances -such Refrigeration (refrigerator or freezer), Dishwashers, maybe a 3rd small sink, and 3rd Oven.

The term “chef’s kitchen” is used loosely, so not all of these features are included in every kitchen and there are some appliances and amenities not listed above. In general, you should expect to see upscale brands, ample space and something more than just stainless steel appliances and granite countertops.

Buying • Real Estate • May 28, 2020

WHY YOU SHOULD USE A BUYER’S AGENT

by Doug McNeilly

Today we tend to do everything on the internet. The internet is an excellent source of information and a great starting point. It can’t replace the knowledge of a skilled professional. After reading a few articles, you might be lead to believe you can buy a house by yourself using the internet or some other method. You potentially could do so, but that might not be the best course of action.

Fact is, if you are a licensed Real Estate Agent in the Commonwealth of Massachusetts you can sell residential real estate anywhere in the Commonwealth. Should you? That is a topic of debate. Before getting into the multitude of reasons to use a Buyer’s Agent, we should first discuss the importance of using a local Real Estate Agent. Unless you are moving from out of the area, you probably have a decent idea of the Towns you want to target. Then go find an Agent that does business in those Towns, knows the Towns, maybe lives in one of the Towns. Having street level knowledge of a Town makes a huge difference, as does an Agent that proactively takes the time to preview inventory. In most Towns, Agents have days where they get to preview new listings (in my area it is Tuesdays and Thursdays). If I am not out with a client on a Tuesday or Thursday, I am previewing property – I am not golfing, not at the gym, not getting my car serviced, I am out doing my job – keeping up with my product (homes). So first and foremost, find a Local Agent.

For most people, the purchase of a home is one of the largest financial commitments they will undertake and often involves saving up that 20% down payment which in the Boston Market can easily push $150,000, plus a sizeable mortgage to go along with the sizeable down payment. Before you get to the point of using the down payment, an experienced Real Estate Agent should be working for you.

There are a few main reasons to use a Buyer’s Agent:

The Buyer’s Agent Works for You – Going directly to the Listing Agent is almost never a good idea. The Listing Agents job is to get the best price and best terms for the Seller. Please reread that sentence again. Your Buyer’s Agent job is to get the best price and best terms for you. While price is important, so are the terms – contingencies, dates, etc. There is give and take throughout the entire process from Offer to Closing. You need someone acting on your behalf the entire time. What happens, if your Buyer’s Agent wants to show you one of their own Listings? Be very cautious. Okay, maybe be very, very cautious. You have an Agent that is representing both the Seller and the Buyer in the same transaction. Whose interests are they representing best? Probably their own, rather than either the Buyer or Seller.

Experience – A Buyer’s Agent job is to help Buyers and to assist Buyers. This is what they do. They view homes all the time. They attend Inspections all the time. They write up Offers all the time. Most people purchase a house only a handful of times in their lives. An experienced and active Buyer’s Agent does this all the time. Narrowing down the correct property and the correct neighborhood takes time, lots of time, a good Buyer’s Agent can save you time and effort on this. And, when you find the right home, a good Buyer’s Agent will save you money in negotiating the Offer and potentially Inspection items. Plus, a good Buyer’s Agent should know the local market. I personally, have been in over 1,417 (and counting) homes in my local market in the last four years.

There is NO Cost to You – Typically, the Buyer’s Agent fee is paid by the Seller. The fee charged to the Seller is usually split equally between the Listing Agent and the Buyer’s Agent. Now, that Buyer’s Agent is not paid until you actually buy a house. A Buyer’s Agent may want some sort of commitment that you agree to use them if they will be working on your behalf. This is fair. If you are asking a professional to take you on as a Buyer and commit time and resources against you to work for you, agreeing that you will use them is reasonable.

Do You Know the Area? – If you are relocating from out the area, then this is so very important. Even if you are local, you might not have much knowledge, just a few Towns over. An Agent with street level knowledge is important. Most Agents know a few Towns extremely well and other Towns in the area decently. Don’t be afraid to use two different Agents if you have not narrowed things down. But, do tell them. Any good honest Agent should respect this. I do. A good Buyer’s Agent will ensure the things that are important to you are nearby – be it schools, parks, recreation, restaurants, etc.

Money, Your Money – This is a big one! A good Buyer’s Agent knows the area, knows the neighborhoods. Knows what is not in the pictures. They will help you to craft a solid Offer that represents a fair market Offer. If you get into a competitive situation they can help craft a winning offer. If your offer has more than the normal amount of contingencies (a home sale contingency, for example), they can help you craft an Offer to account for that. One of the most important skills is the Buyer’s Agents ability to suggest the proper purchase price.

Your Personal Assistant – Scheduling and viewing homes takes time. There is often back and forth with the Listing Agent and your Buyers Agent often can work out a viewing schedule especially if you want to see several homes in a day. A Buyer’s Agent has direct and easy access to information and documents or they can easily get them. You don’t want to be chasing ten Listing Agents for information. Let your Buyer’s Agent do that.

Your Project Manager – The goal is to get to the Closing. Numerous things can go wrong, a Buyer’s Agent job is to minimize turbulence and keep the momentum going. A good Buyer’s Agent will track the Milestones and provide you with a list of Key Dates. A good Buyer’s Agent will be the communications hub between all parties when appropriate – Buyer, Seller, Attorneys, Banks, Inspectors, Appraisers, etc. A good Buyer’s Agent will employ their office team to help make the process as smooth as possible. At Coldwell Banker Realty, we have a dedicated administrative staff and a dedicated non-selling management team to assist us. Sorry, I had to put in a plug for one of Coldwell Banker’s many points of differentiation.

Connections – A Buyer’s Agent has great connections in the real estate world. Has a readily available list of home improvement contractors (heating, roofing, structural, electrical, painting, plumbing etc.), one or two good handypersons, a cleaning service, legal referrals and lawn service providers. You should never have to go to Google or the phone book to find help.

Your Negotiator – Most of us don’t like to negotiate. Plus, you might be bad at it. Get your Buyer’s Agent to do it for you. They will know when to push the Seller some and when not to. Your Buyers Agent has the knowledge, skill, confidence to help negotiate the deal. They can act as a buffer and keep things at a professional level. If you deal with a Listing Agent directly, things can get personal quickly.

In Summary…

A good Buyer’s Agent is your proponent at all times. You have a business relationship with each other. The reasons above make it clear as to the benefits of using a Buyer’s Agent. There are really few, if no reasons, not to use a Buyers’ Agent. Do take the time to interview a few different Agents. Once it is all over, and you are in your new home, you will be pleased an Agent did all of these things for you.

Real Estate • April 22, 2020

COST EFFECTIVE WAY TO UPDATE THAT PINK TILED BATH

by Doug McNeilly

Need to sell your home? Have one of those Bathrooms that is off putting to Buyers? You know, the 1950s Bathroom tiled in Pink, Baby Blue, Yellow or any other combination of 1950s or 1960s colors. Better yet, 1970s Avocado Green. While some Buyers like the retro look, they like a new retro look, not actual retro.

What should you do? Updated Kitchens and Bathrooms sell homes. A completely remodeled basic bathroom can cost almost $20,000. Why so much? There are a few factors that go into that $20,000. Often this level of remodel takes the Bathroom down to the studs and at this point code updates are often required. You might need to update the electric, plumbing, add insulation, add an exhaust fan, and for sure pull permits. Permits have a cost and require the local Town to inspect the work at a few stages – normally rough and final inspections. Those add steps to the process and cost.

Assuming the tile is in good condition…meaning not cracked, solidly adhered to the wall and floor, and not soft to the touch (indicating water damage behind the tile) then you might be a good candidate for the what I call a “Soft Refresh.” While I speak to tile, even some fiberglass tubs and shower surrounds can be refinished.

So, what is in a “Soft Refresh?” Re-glazing the Tile (Tub, Tub Surround, and Floor), New Vanity, New Toilet, and New Fixtures for the Tub/Shower and Sink and new Lighting.

Re-Glaze – There are companies that specialize in re-glazing tile. This can be done in a variety of colors – best to stay neutral with a white or off white and add color with accessories. The cost to re-glaze a tub, tile shower surround, and the tile floor for an average sized Bathroom is currently about $1,500. While not the same as a new tile job, the re-glazing can make a huge difference and make a bathroom appear more updated than a tub that screams – 50 years of bathing has happened here!

Vanity – Most Bathrooms have vanities in standard sizes. Home Depot and Lowes and other stores all offer Bathroom Vanities with Solid Surface Tops and Sinks in one unit for under $1,000. Since these units are all one piece, switching the old vanity with a new vanity is a fairly straightforward job.

Toilet – Who doesn’t like a new toilet? This is a cheap item to change out and Buyers like the idea of a toilet that is new and has not seen years of use. This can be done for under $500.

Fixtures – New faucets, shower controller, shower head that all match complete the new look. You can go crazy here, but don’t go cheap. A decent set that matches is around $500.

Lighting – New lighting for the ceiling, wall, or both also completes the look. Much like with the plumbing fixtures, no need to go crazy, but don’t go cheap.

Switches / Plugs – Don’t forget to switch out the plug, light switch, and the plate covers. That also completes the look. If the plug is not GFCI then have an Electrician update that.

In theory, any work you do likely requires a permit. It is best to check with your local Town. Some of the items above can be completed by the Home Owner or a Handy Person. Other items, such as updating the outlets to GFCI or new drain pipes for the sink (between the sink and wall) are best handled by a licensed Electrician and/or Plumber that pulls the appropriate permits.

The items above should total about $5,000. Well shy of the $20,000 for an all new Bathroom. Will Buyers be fooled? No. Will the refreshed Bathroom compete better than the house with the original 1950s bathroom? Yes.

Bathrooms and Kitchen sell homes. If you can’t afford a complete remodel, there is a cost effective way to make quick updates that will appeal to Buyers.

Buying • Real Estate • March 23, 2020

WHAT TO KNOW ABOUT THE LOT THE HOUSE IS ON

by Doug McNeilly

Most Buyers have heard the saying, “location, location, location.” Every Buyer has budget limitations. Depending on where you want to live, and your budget, you will likely need to make compromises – size of house, proximity to amenities and work, neighborhood location versus busy road, and more. You also need to have a good piece of land and that starts with a great lot.

What about the lot itself? The actual piece of land you are purchasing? Take a minute (okay, several minutes, if not more); look around outside and then do a little research about the land your potential new home sits on. Often, we get taken in by the new Kitchen or Bathroom, gorgeous hardwood floors, huge walk-in closet or even the furniture (remember, you are not buying the furniture). Here are some things to consider.

Is the area fully developed? Meaning, can the land on any side of the lot (side, rear, across the street) be developed or could that small house next door be torn down? Altering your view and enjoyment. Areas with private septic might limit how large a home can be. Areas with municipal sewer might allow a huge two-story home to be built that will loom over your backyard and your perfect little ranch style home. Consider the characteristics of the lot. Proximity to neighbors? Views from the house?

Is the lot level or sloped or both? Think about it. How do you like to use the backyard? Play soccer with the kids? Relax on the patio built into a hill with tons of shade? Since we are talking about slope; let’s talk drainage and water run-off. Poor drainage can lead to water issues. And, if your neighbor makes major changes – building and/or landscaping, will more water run towards you?

What is under that lush green lawn? Nice soil? Ledge? If you plan to expand your home or do any major landscaping, knowing if you need to blast is helpful. Is there gas on the street, but ledge between the house and the street? That gas line just got way more expensive.

Elevation? Say what? Jon Gorey wrote an article all home owners should read: The Super Important Home Factor You’re Probably Not Considering. As climate change takes hold, Flood Maps are constantly being redrawn. Know where the 100-year floor zone is? Better yet, the 500-year flood zone? How many 1,000-year floods have occurred in the last 10 years?

Visit the Town Building. Have a quick conversation with the Building Department, Town Planner and Conservation. These departments all go by slightly different names in different Towns, but they can provide current information about what is happening.

If you think you might want to expand your home in the future also speak with the Building Department. I’m sure they have a detailed chart on what you can and can’t do. Know what you can do before, not after you purchase. That might also mean a conversation with the Board of Health (if there is private septic) and Conservation (if you are near water or wetlands). That’s another point – just because the land looks dry in the August heat wave, doesn’t mean it is not nice and soft in the Spring and considered Wetlands.

Who else might have access to your property? What? Someone else might have access to your property? Yep! It is called an easement. The normal cast of characters include oil / utility / natural gas companies, the Town (conservation, drainage, etc.) and neighbors for access to their own properties. Easements can have a major effect on what you can do with your home and/or land, it is critical to know their exact location.

Are there are possible environmental hazards? Old unknown underground oil tanks often come to mind. But, take a birds-eye view. Is the lot located near any old environmental sites? Easy information to find out.

No lot is perfect. Just like with a house, most Buyers need to make some level of comprise given their budget. Knowing details about the characteristics of the lot will help you make the best decision possible.

Real Estate • Selling • February 28, 2020

THE PRE-SALE INSPECTION? BAD IDEA or GOOD IDEA?

by Doug McNeilly

Most Agents have a strong view on whether a Seller should conduct a pre-sale home inspection. Most would advise a Seller against conducting a pre-sale home inspection. My opinion is that the pre-sale inspection is a prudent course of action. It does have two costs for the Seller. The actual cost of the Inspection itself and the cost in that the Seller now has to disclose what they know to any potential Buyer. In Massachusetts, Sellers are only required to disclose any knowledge of Lead Paint (if the home was built prior to 1978).

Most home sales have a few milestones – Offer, Inspection, Purchase & Sale, Mortgage Commitment, and Closing. A deal can fall apart at any juncture. Most negotiations take place at the Offer and Inspection phases. The Inspection phase is an easy place for the deal to fall apart. Getting a pre-sale inspection helps to eliminate any, if not all, issues around the Inspection. A poor Inspection result leaves the Buyer wondering how much more is wrong that they can’t see. A good Inspection result has the opposite effect. Either way, Inspection issues will have to be dealt with regardless, it is best to get ahead of it.

Benefits of a Pre-Sale Inspection

A pre-sale inspection allows the Seller to understand the condition of their home from an Inspectors point of view (and the Buyers). The inspection allows the Seller to use the results when setting the list price. The more issues the Seller can eliminate beforehand, the better the eventual “real” Inspection outcome will

Now that we have covered the main benefit of conducting the pre-sale inspection, lets move on to the “why.”

Eliminates Unknowns

The Home Inspection is always the huge unknown in the sales process. The Home Inspection can uncover issues the Seller is not aware of. Many deals fall apart at the Inspection. Numerous issues can leave the Buyer feeling that the house is not well maintained. And, some Inspectors have poor “bed-side manner” and can create unnecessary alarm. This can create an overly negative impact on 1st time Buyers who are not familiar with home ownership. The delivery of the message can be worse than the issue itself. Having few issues to report offsets a bad messenger. Houses that come “Back on Market” after Inspection are perceived as having something wrong with the house. Often, Offers the second time around are lower and the issues from Inspection will still need to be addressed or accounted for in the list price.

Fix Issues Before Listing

Conducting a pre-sale inspection allows the Seller to fix any issues before the house goes on market and make repairs in a cost effective manner. Repair issues almost always cost more if they need to be addressed during the contract process. Or, the Buyer may want a Sellers credit to address the issue(s) and will likely ask for extra money to eliminate any potential scope creep.

Price to Account for any Issues or Lack Thereof

If the house is well maintained, it can command a higher price – especially if the Inspection Report is provided. If the Seller elects not to complete repairs, they can disclose the items and have that reflect in the price. Knowing the exact condition of the house allows your Real Estate Agent to price the house as accurately as possible.\

No Renegotiation

Just getting that Offer in and then agreeing to a price and other terms takes effort and patience. Having to renegotiate over Inspection items can aggravate both the Seller and the Buyer, each who often feel they gave up too much getting that offer agreed to. Having nothing to negotiate over after the Inspection makes the transaction progress smoothly towards the Purchase and Sale. Many deals fall apart at inspection over items – from a dollar standpoint – don’t make sense in relation to the purchase price. Letting a deal fall apart over $5,000 on a $1,000,000 purchase happens more often than it should.

Even though you have conducted a pre-sale inspection, the Buyer will (and should) conduct their own Inspection. All Inspectors will identify the same major issues/concerns, but each Inspector will hone in on different items. So while there should be no surprises, the results might be slightly different. Thus, while a Buyer request is unlikely, it may happen. I always attend Inspections. I want to hear what the Inspector says (in their own words) versus what ends up on the report.

What are the Disadvantages of the Pre-Sale Inspection?

What you know, you have to disclose (in Massachusetts and most states). What you don’t know, you can’t disclose, because you don’t know it. Most states have language around issues that “a reasonable buyer would find material when making an offer” need to be disclosed. Your Agent has to adhere to more strict disclosure requirements. If you can’t afford to fix a lot of issues, then having the pre-sale inspection means you likely will not be able to fix any issues, but at least you can price for them

In Summary

A pre-sale inspection is not required, and most Sellers do not conduct a pre-sale inspection. They should. For most Sellers, a home sale involves selling the largest financial asset they own. Not knowing the condition of that asset and then allowing an Inspector and/or Buyer to dictate or have the upper hand in the negotiation process seems almost crazy, but that is the norm. Allowing a Buyer to make a fully informed decision benefits all parties, I would argue it benefits the Seller the most.