Real Estate • Selling • January 31, 2020

WHAT SHOULDN’T HAPPEN DURING A LISTING APPOINTMENT

by Doug McNeilly

The Listing Appointment is an interview of sorts – for the Seller to understand what a particular Real Estate Agent has to offer and the firm that the Agent is associated with has to offer as well. The Agent is also interviewing the Seller to understand the Seller’s objectives.

I normally follow a two-step process. The first step normally entails a shorter visit where I view the property and also spend time talking about the market and the Sellers main objectives. The second visit – a few days to a week later – is where we sit down – discuss the marketing plan and discuss similar properties that have sold in the last few months (sold comparables) and the current competition (active comparables) and review a suggested listing price – I actually provide a range that gives the Seller some flexibility based on their objectives.

While I may well have an idea of the property value at that initial meeting, I prefer to sit down with pictures of sold and active comparables and talk through each comparable. I never pressure or even ask the Seller to sign a Listing Agreement at either meeting. I do ask the timeframe for when the Seller will be making a decision and what is important to them in making that decision. And, of course, I do tell the Seller, I would love to earn their business. I don’t use scripts or tactics to get a Seller to sign then and there. Too many Real Estate Agents are trained to never leave without a signed contract. Not my style. A Seller should feel they are making a fully informed decision when hiring a Real Estate Agent. Selling and Buying a home happens for most people only a handful of times during their lives and involves a sizeable asset. Your Real Estate Agent should treat that decision that way. Moment of honesty – do I have a contract ready to go? Yes. Where is it? Out in my car. I am prepared. If the Seller tells me they are ready to sign, I am ready as well.

While it is obvious that competence is critical when hiring a Realtor, it is also important that the “fit” between Seller and Agent is a good one. Selling a house is funny that way – you have an intense relationship with someone who may be a total stranger one day and then becomes a big part of your life the next. It is important that it feels right. It is also important that the Seller and Agent are up front and direct with each other. A home goes from being a home to a product on the market – so in a sense hiring a Realtor is a business decision.

When you hire an employee, you read resumes, interview at least once if not more, check references and more. You should be allowed and allow yourself the same due diligence when hiring a Real Estate Agent to sell your home.

Doug McNeilly is a REALTOR® with Coldwell Banker Residential Brokerage 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 • October 8, 2019

Why Get a Permit?

by Doug McNeilly

Let’s first tackle the reasons why some homeowners do not obtain permits. Three main reasons come to mind. First, the homeowner is not aware that a permit needs to be pulled. This assumes the homeowner is performing the work themselves. Second, the Contractor performing the work does not pull the permit and the homeowner is unaware it is required. Third, the homeowner does not want their property assessment to increase which ultimately increases their taxes.

So, why pull a permit if work is being done?

* It is required – that is a simple reason.

*When you eventually sell your home, if you want to highlight all those wonderful updates and renovations, any good Buyers Agent and Buyer should take themselves down to the Town Hall and review the file for your property at the Building Department and make sure all applicable permits were pulled and signed off on. I do this for any Buyers I am working with. Now, in a competitive market, that favors Sellers, Buyers may need to overlook this or risk losing a property, but the Buyer should at least know if permits were pulled

*It creates a record that the work was done and when it was done. Often helpful when memories get fuzzy. Exactly, when was that roof replaced or that water heater replaced?

*It protects you, the homeowner. If the work needs to be inspected, it gets inspected. Sometimes, Contractors do not want to deal with the extra steps of pulling permits and having the work inspected. Fair enough. Does this make those Contractors less reputable? Most likely not. Might a Contractor charge more for the extra steps and time involved in pulling permits and having the work inspected? They should.

*If you have an insurance claim and the insurance company determines there was unpermitted work they can deny your claim.

*When a house is new to the market, the Assessors Office and Building Department sometimes cross reference the Listing Details against their records. If Assessor’s Office sees a discrepancy, they may increase the assessed value. If the Building Department finds unpermited work then may require you to pull a permit and have the work inspected or work case scenario have the work torn out.

Pulling permits keeps everyone honest. There is a record that the work was done. The work gets inspected and signed off on. When the homeowner eventually sells, the buyer can know the work was done appropriately. Can this be a hassle? Yes. Although not pulling permits in the long run often causes more issues than it solves

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

Real Estate • Selling • August 2, 2019

WHAT IS IN A COMPREHENSIVE MARKETING PLAN?

by Doug McNeilly

A competitive price will always be paramount to enticing Buyers to make an offer. Outside of that, a Comprehensive Marketing Plan is crucial, and I would argue a required base level in today’s crowded marketplace. None of the marketing strategies below sells a home in isolation, although together they form a Comprehensive Marketing Plan.

Pricing Competitively – While this may not seem to be a marketing strategy, it is. Buyers ready to purchase often have been looking for months, and usually have a good pulse on the market. A good Sellers Agent has previewed the homes recently sold and currently on the market and should be providing a highly personalized analysis – the analysis should go much deeper than just reviewing print outs from the MLS (Multiple Listing Service).

Staging – Staged homes sell for a higher amount and faster than homes that are not staged. Buyers love homes that look like a Crate & Barrel or Pottery Barn showroom. Even just investing in staging advice and the editing of pieces can pay dividends. Your Agent should have resources at different levels of the staging spectrum. Selling and living in homes are different, listen to your Agent and try not to be offended. Personal note, if I need to sell my home, I would remove ALL my furniture and stage the entire house. This cost is normally absorbed by the Sellers.

Professional Photography – Of all the marketing strategies, this is a cost of entry marketing to be a Real Estate Agent. Almost all searches start online, anything less than high resolution, clear and crisp photography is unacceptable from my perspective.

Floor Plans – When buyers attend numerous Open Houses or set up several showings, they do not remember the exact floor plan or the dimensions of a room. Make it easy for the Buyer and have a Floor Plan available.

Virtual Tour – I use the Matterport technology. It allows Buyers to walk through your home via their mobile device or computer. It is interactive allowing Buyers to pick the order of the rooms, when to zoom in, go upstairs or downstairs. Unlike photography, the Buyers can see everything – which makes staging all the more important. It hides nothing, for better or worse. This gives Buyers a true sense of what the home offers.

Social Media Exposure – This can and should vary based on the objectives, the goal is to place your home in front of a wider audience than traditional marketing methods. The key social media mediums are Facebook, Instagram, Linked In, Pinterest, Google Business, and Twitter. I personally do not Tweet or even have an account. Most of these are low cost, high impact approaches.

Single Property Website – This gives your home its own website – 123MainStreet.com – it is great for social media posts since it brings in both a picture and link to the website which directs Buyers back to your Agent. For Buyers driving by, they don’t need to remember an Agent’s name and Brokerage – just the street address. The goal is to make it easy for Buyers to find the details on your home.

Talk Up the Area – Highlight the key aspects of the location – commuting access, public transportation, recreation, schools or other local amenities – Buyers are buying both a house and into the local community as well.

High Quality Print Materials – Brochures and Flyers should be on thick glossy stock and highlight those professional photographs. And, Floorplans and Neighborhood details should also be available and at the home.

Public & Broker Open Houses – Broker Open Houses, preferably even before the Public Open Houses allow other Agents to preview the property so they can preview it for their Buyers. Pubilc Open Houses should also have the Printed Materials mentioned above. While most homes do not sell at the Public Open House, the Open House allows Buyers a pressure free way to view the home.

Informing Their Network – This a low cost, easy way to get exposure and your Agent should be letting everyone in their network know about their newest listings. This can be done via Social Media and/or an email campaign. It has links back to the Single Property Website which allows your Agent’s network to share the listing with their network.

Just Listed Postcards – Let’s be honest, they get recycled almost immediately – but Just Listed Postcards are a great way to get your home in front of neighbors – not all neighbors drive each street in the area on a regular basis or look at what is for sale each day – but they may know someone that is looking to buy.

A marketing plan should be comprehensive and include items such as the ones outlined above. Each item is an article in itself. Several of the elements are interconnected and build off each other. Many Agent don’t invest in the marketing strategies (and others) mentioned here – they should. Why? Many Agents don’t want to absorb any more initial costs than needed. I would argue, and I view, a Comprehensive Marketing Plan, as a cost of doing business. You hire an Agent to get your home sold. A Comprehensive Marketing Plan should be an essential part of what your Agent offers.

Buying • Real Estate • April 16, 2019

CAN I ADD ON TO THAT HOUSE?

by Doug McNeilly

You love the neighborhood! You love the lot! You would love the house, but just with a little more space! Don’t just assume you can expand. It is time to pause. While expanding your home in most instances can be accomplished, you need to do a little more research about the process to verify you can in fact expand to make your dream home a reality.

If the home you are looking at is on municipal sewer, generally you can expand. You should confer with the local Building Department on set backs and other requirements. If the lot is non-conforming or near wetlands, there may be additional steps.

If the home you are considering is on private septic, you may likely be able to expand, but there are several more factors that may impact your ability to expand and how large of an addition you can build. The factors can vary by Town so this list is not exhaustive, but representative of some main items to consider to gain approval to expand a residential property.

Adding a Bedroom – If you are adding a bedroom you will likely need to upgrade your septic in most instances. Most septic systems are rated for a certain number of bedrooms (not bathrooms). If you have a three-bedroom house with a three bedroom septic, adding a fourth bedroom will require a new four bedroom septic system. But upgrades to septic systems are often treated like new construction, so depending on the size of the lot, upgrading to a four-bedroom septic may not even be possible since you need space both for a leech field and a reserve leech field. A new septic system can easily cost $25,000+. If all that may seem mind numbing, your Buyers Agent can explain it in more detail, or better yet, speak with the local Board of Health – the experts in such matters.

Adding Square Footage – If you are adding a certain amount of square footage (say, 59% or greater to the existing house) you may also be required to upgrade the size of your septic system. Which depending on your lot size you may or may not be able to do. The huge caveat is that the Town may include in that percentage % calculation “any” space added since the house was “originally” built….so that finished basement from the 1970s may need to be included in that calculation further limiting the size of the expansion before a new septic system is required.

Adding Several Rooms – If you are adding a certain number of rooms – that may also require a septic upgrade. Some towns take the number of rooms, divide by 2 and round down. So that eight room, four-bedroom home, with a four-bedroom septic gets the following calculation (eight rooms/2 = 4.0). You have a four-bedroom septic so you are fine. Add one room (nine rooms/2 = 4.5, round down to 4.0 you are fine. Add two rooms (10 rooms / 2 =5, you have a four bedrooms septic, and you may need to upgrade to a five bedroom septic.

What does all this mean for the Home Buyer? Don’t assume you easily expand any home. ‘

You need to have conversations (preferably in-person) with the local Board of Health and Building Department (or other parties). Add in the Conservation Department if you are near anything resembles water – meaning actual water, wetlands, seasonally wet, etc. This can be near impossible to do in the heat of a multiple offer situation. If you have your two or three Towns narrowed down, it might be prudent to have preliminary conversations to understand how each Town approaches this. In the Greater Boston area we have an older housing stock, which means many homes are smaller than Buyers will eventually want or will eventually need.

A modern home with an extension being built

Buying • Real Estate • January 30, 2019

Focus on the House, not the Couch

by Doug McNeilly

Often when I am hosting an Open House, I hear buyers talking about how their furniture will fit or be placed in the home. The rooms of most concern are mainly the Living Room, Dining Room and Master Bedroom. Furniture does represent a substantial investment for most home owners. A sofa, dining table, or bedroom furniture is likely to be swapped out maybe once (if at all) during the ownership period of the typical home owner (which is less than 10 years nationwide). For those that stay in their home longer, we might swap out the couch once or twice during a 20 year or 30 year period.

I have seen buyers not make an offer based on their furniture not fitting in the house. In the Metro Boston area I serve, the average home is easily in the $750,000 range. If the average new couch is $2,500, do you want to base your decision on less and 1% of the purchase price – or 0.3% in this example? It can difficult to get rid of perfectly good furniture that is not all that old. Family piece aside, looking at the bigger picture is important. A house is a place to call home, but it is also an asset, the largest asset most people have or will ever have

Look at the flow of the house, the size of the rooms, the location, the lot, proximity to things important to you. The last three can’t be changed. The first two can be, but at a cost. A cost much higher than new furniture. Really look at the home as if you have no furniture. If your furniture fits, great! You saved some money. If it does not fit, you get to go shopping or you may need to live with an awkward furniture placement for a while. I would argue it is better to curse your furniture in short-term over your house in the long-term.

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.

Buying • Real Estate • November 13, 2017

SO, YOU ARE BUYING A HOME WITH A SEPTIC SYSTEM…

by Doug McNeilly

If you are coming from a location with a Sewer this may be a whole new world to you and the thought…or fact…that waste (from your toilet, sink, and shower) ends up in your yard may be frightening and a little disgusting.

First Things First:
This is not about how Septic Systems work or Septic System maintenance. It is about what you need to know if you are buying a home with a Septic System.
This pertains to Massachusetts only, but applies to other areas of the country where septic systems are in use.

I am NOT a Septic Engineer; this is my view point as a Realtor.

For a home to sell, it must have a “Passing” Title 5 Report – which means all the components are in working order and meet State guidelines. If the Septic System “Failed” Title 5, or if the Title 5 Inspection has yet to be completed, just know this could delay the Closing (or worse cause the deal to fall apart). Why? If the Septic System has not / does not “Pass” Title 5, the repairs need to be done before Closing or funds will be held in Escrow from the Seller’s proceeds. Not all Lenders want to deal with this as it is messy….no pun intended.

So, if the Septic System passes Title 5 you are golden, right? Well, not so fast. There are some important things to know and do:

How old is the system? Systems last 30 years +/-. If you are buying an Older System that “Passed,” just know when you sell, say 10 or 15 years down the road……do not be surprised if the Septic System needs to be replaced and you are responsible for installing a new Septic System. Currently, systems can easily cost $25,000+. The Home Inspection reveals the age of the roof, boiler, etc. You also need to know the age of the Septic System.

How often has the Septic System been pumped? Annual is best. Currently, that costs about $400. Some say if only one person is in a house, versus four, then less often is OK. If you drive 1,000 miles a year, would you change your oil every 3 years? Visit the Board of Health and verify the Pumping Records.

While at the Board of Health, verify that the size of the Septic System matches the Listing. Septic Systems are rated by number of bedrooms. So, a 4 bedroom house, with a 3 bedroom Septic System, is and should be listed as a 3 bedroom house.

Is there a Garbage Disposal? This is a huge “NO…NO,” with a Septic System. If the house has one it probably has caused premature aging of the Septic System.

If the House is on a small lot, near Wetlands, etc……could you fit the same size replacement system in? You do not want to find out down the road, that 4 bedroom house you bought is now a 3 bedroom because of limitations on the placement of a Septic System.

When was the Title 5 Inspection done? It must be completed and “Passed” within two years of the date of the Closing. Key word is Closing, not Offer Acceptance, not Purchase & Sale. In some instances a passing Title 5 Certificate can be extended 1 additional year.

TO RECAP….you need to know:
Age of System
Pumping Frequency
Size of System Design
Is there / was there a Garbage Disposal

This is not meant to scare….just make one more aware. If the Septic System is older, it is highly unlikely the Seller will give up $$$ if the Septic System “Passed.” The Buyer just needs to be aware that if the Septic System is older, much like an older Roof or Boiler, it may need replacing during the Buyer’s ownership. The price tag of a new Septic System is one of the largest repair costs a Home Owner will likely face.

Doug McNeilly is a REALTOR® with Coldwell Banker Residential Brokerage in Wayland, Massachusetts. He specializes in Wayland, Sudbury and the Greater Boston Metrowest Area.