Wednesday, December 15, 2004

Greenwich Real Estate News - Ask for performance related data when hiring a listing agent

As consumers of a particular type of service, you have the right to and should do your own due diligence before hiring someone to sell your home. I, like most consumers, am a firm believer in getting the most for my money. That is why I advocate that home sellers ask the relevant questions which get to the heart of the matter. Don’t be shy.

Ask performance related questions, you are not imposing or digging too deeply if you inquire about data to support an agent’s assertions, especially if they are claiming to be experts or are other wise claiming to be better than their competition. The details of their marketing plan and what they are going to do to bring a tremendous amount of buyers through the door, or to have your house listed on all the different real estate related websites with videos and nice music, etc…, and how they are going to stage your home to make sure it looks the best that it possibly can becomes secondary to the two most important questions for most sellers: how quick and for how much?

Don’t get me wrong, it is important to understand how your property will be marketed and what amount of resources of the commission being paid will be applied towards the marketing efforts of your home. After all, you want to see where your commission money is going. However, from my own experience at listing presentations, for most sellers, those types of details become far less important than those two simple questions.

If a Realtor cannot answer those two questions for you, then there is something wrong. Trust me when I tell you that any Realtor worth their weight in salt knows or should know these performance data. These numbers are tracked by the MLS and are referred to as DOM (days on market) and percentage to list price. Because this data can measure our efficacy, many of us use these numbers in our marketing material aimed at home sellers. And as it is also the end of the year, many of us are reviewing our performance numbers anyway.

Finding a good Realtor to sell your home should be an interactive experience with the sellers asking relevant questions as a part of their due diligence as much as the Realtor’s claims about how they can sell your home better than their competitor. If they do not provide data, ask for them. The decision to engage should not be based solely on receiving pretty post cards or receiving nice little writing pads with the Realtor’s pretty mug staring back at you; it should be all about how they can bring value to your transaction.

Friday, November 12, 2004

Greenwich Real Estate News - Tips for Coping with Home Buying Stress


When searching for the right home and buying a home, this can be a very stressful process because this is a major purchase and there is much to consider. However, home buying should also be an enjoyable, rewarding, happy experience. Here are some basic tips for coping with the stress of buying a home. This will help you and your family to worry less, have more peace of mind and just be able to enjoy your new home and future.

Purchase Offer Stress
Stress can start during a purchase offer or when signing a purchase agreement. You may start to worry and wonder whether or not they will accept the offer, what will happen when you find a home you like and more. This is where your agent will be a major help. Discuss your concerns with your agent, and make sure you get everything explained well and all your questions answered.

Stress waiting for Acceptance
Stress can happen and increase while waiting for a seller to accept your offer. You may worry if they will accept it, if they will get angry about the offer, if they will have a counter offer and more. To help you relax and cope, call a friend or family member, or get out of the house and keep yourself busy while you wait. This will help keep your mind of it for a while.

Counter offer stress
Stress can grow if a seller does not accept the offer and gives a counter offer. This can cause worries about being able to afford the home, and more. The best thing to do is to discuss these worries and concerns with your agent and family and friends. Also, remember that there are still other options and this is not your only chance to buy a home. This will help you relax and be more at ease.

Stress During Closing
There is usually much stress during closing because there is so much to do and consider. One way to cope with this stress is to ask your agent about the whole process so you can be more prepared and then more relaxed. Always ask questions if you have them.

These tips for coping with the stages of buying a home can help the process be more enjoyable, rewarding and more important to the buyer. This will help the home buyers to be able to relax and just enjoy their new home more than ever before.

Saturday, October 2, 2004

Country Estates And Manors - Why Choose Our Firm

Country Estates And Manors offers our clients the professional skills necessary to achieve maximum results in the Greenwich real estate experience. Our expertise encompasses educated market analysis, strategic property pricing, strong negotiating skills, creative marketing and exceptional personal service.

We are a resource of professional and social connections throughout town and provide a wealth of local knowledge and information to our clients. Committed to our community, we are dedicated volunteers in organizations and causes throughout town.

  • Professional Skills
  • Educated Market Analysis
  • Strategic Property Pricing
  • Strong Negotiating Skills
  • Creative Marketing
  • Exceptional Personal Service
  • Professional and Social Connections
  • Knowledgeable about Greenwich
  • Licensed in Connecticut and New York
  • Global Affiliate of Luxuryrealestate.com
  • Committed to Organizations and Causes
  • Welcoming to All

Friday, July 2, 2004

Greenwich Real Estate Market Explained

Real estate exchange helps secure 'dream condo'

By Robert J. Bruss

DEAR BOB: I currently own a rental condo. If I move into it for 24 months, I believe I will not be liable for any capital gains tax. But I would like to sell the rental condo and purchase another rental property using the Internal Revenue Code 1031 tax-deferred exchange you often discuss. How long would I have to rent the condo I purchase before I can convert it into my personal residence? – Richard W.

DEAR RICHARD: If I understand your e-mail correctly, instead of moving into your rental condo to convert it into your principal residence after 24 months of occupancy, to claim up to $250,000 tax-free sale profits under Internal Revenue Code 121, you instead want to make an IRC 1031 tax-deferred trade for your ultimate dream condo.

That's feasible. To make a qualified tax-deferred trade, presumably a Starker IRC 1031(a)(3) exchange, you must meet the requirements. These include having the sales proceeds for your old condo held by a qualified third-party intermediary accommodator, designating the replacement property within 45 days, and completing the acquisition within 180 days.

The property you acquire in a tax-deferred trade must be held as a rental at the time of acquisition. There is no exact answer to how long it must be rented before you can convert it into your personal residence. To show rental intent at the time of acquisition, most tax advisers suggest at least 6 to 12 months. For more details, please consult your tax adviser.

Wednesday, June 2, 2004

Greenwich Real Estate Market Explained

Protect Your Property In a Rent-Back Situation

By PATRICK BARTA

Question: We offered the asking price on a home recently and received a counteroffer from the sellers in which they asked to "rent back" the home for a month following the closing. My agent said she has had some bad experiences with rent-back situations, so she thinks we should counter by suggesting the sellers get a bridge loan for a month. The market is hot in our area, and we really want this house. What should we do?

-- Elizabeth

Elizabeth: It's fairly common for sellers to ask to "rent back" their home for a short period of time while they wait to move into their new house. Some real-estate agents dislike the practice because they worry that something could go wrong with the property while the sellers are staying on as renters.

But most agents view rent-backs as perfectly acceptable, and as long as you take a few steps to protect yourself, everything should work out fine.

First, establish a fair rent for the property before you get to the closing table, and collect the money up front. There's no need to try to milk the home sellers for every penny they can afford -- doing so will only breed ill will -- but it is important to charge enough to cover all your expenses as the new owners. That includes your monthly mortgage, plus taxes and insurance. Also, be sure to settle who will be responsible for maintenance and utility expenses.

Second, ask the sellers to set aside a damage deposit that can be tapped in the unlikely event that problems arise. In some cases, real-estate agents insist that sellers set aside 2% of the sales price of the property. Other agents believe it's not necessary to demand that much; either way, you want to make sure the sellers have some serious money at stake so that they won't treat the place like a hotel room.

Third, set a departure date for your new renters, and establish a daily penalty if they fail to vacate on time. Some real-estate agents believe the daily penalty should total 10% of the deposit; others believe a simple $100 a day is sufficient (assuming the house is not a million-dollar mansion).

Finally, you should be sure to do a rigorous inspection of the house before the rental period begins, taking note of any dings you find. That way, you'll have a record of the house's condition in case there's any damage to the property when the old owners vacate.

Arranging the rent-back terms might seem like a hassle, but many real-estate agents have standardized contracts available that can make the process a lot easier. And in today's strong housing market, buyers often have little choice. The sellers own the commodity, and therefore get to choose the rules.

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Greenwich Real Estate - Buying A Home - Find Homes In Greenwich At InsideGreenwichRealEstate.com

BUYING A HOME:


1. Making the Decision to Buy:
The decision to purchase a home is often driven by the need for more space, the need to move to a new location or simply the desire to change one's life style. If you are unfamiliar with the area to which you are moving, the REALTOR you choose must make an effort to introduce you to the characteristics of the community and help you decide if this is a good match for your needs. Within any community there are variations by neighborhood, and these should become clear to you as you are shown properties in the community. By giving your REALTOR feedback, you can make the search process more efficient. If your REALTOR learns that you do not want to buy in a particular neighborhood, he or she will not show you properties there and will concentrate instead on those areas which interest you.


2. Selection of a REALTOR:
The selection of a REALTOR in a community such as Greenwich is made easier by the presence of the Greenwich Multiple Listing Service. Almost every real estate agent in the community is a member of the Greenwich MLS, which gives each REALTOR access to every property listed by every office in the membership. Therefore, it is not necessary to seek the services of more than one REALTOR.

In your selection of a REALTOR, you should look for someone with whom you are compatible. When you initially meet with a REALTOR, whether this is someone to whom you have been referred or someone you have randomly chosen, you will be asked to sign a buyer authorization form. Required by state law in order for the REALTOR to show you properties, provide you with information, and negotiate on your behalf, this agreement will state the time frame during which the agreement is in effect, the kind of property it covers, and the area of Connecticut in which it is effective. If you are uncomfortable making a commitment to a REALTOR, ask that the time frame be limited to a day, a week, a month or any time frame which you feel you need to determine whether you would like to work with this person. When you ascertain that the relationship is compatible, you can sign an extension of the time frame.

Since every REALTOR has access to the same properties through the Greenwich Multiple Listing Service, there is no need to use the services of more than one REALTOR concurrently. In fact, doing so can cause confusion to you and your REALTOR. Be sure that you have specifically described what you are looking for in a property and ask your REALTOR to introduce you to properties which most closely meet your criteria. Give feedback on properties that you are shown, so that your REALTOR can continue to refine the picture of what you need. If your criteria changes, communicate this to your REALTOR. For example, if you decide that a particular style of house does not fit your needs, let your REALTOR know so that houses of that style are no longer shown to you.

It is a REALTOR's responsibility to inform you of any material facts about a property which he or she knows. These facts would be things such a condition of roof, presence of wetlands on a property, a known change to a road which will impact the property, etc. It does not include information about the seller's reason for selling, who the neighbors are, etc. Your REALTOR may not know everything about the property's condition; that is why you will have a building inspection done before signing the contract to purchase.

When you have developed interest in a particular property, your REALTOR will be able to provide information about comparable sales in the area to help you determine value. Your REALTOR can arrange for you to visit the local schools, obtain information about programs available in the area and help you select the appropriate property.


3. Mortgage Pre-Approval:
You will contact a mortgage company or banking institution to understand what purchase price might be correct for you. Further understanding of your financial situation will allow the lender to issue you a "Pre-Approval" letter which stipulates that you have been approved for a mortgage up to a specific dollar value. This is a valuable asset for you during the negotiation process. If you are not familiar with the names of lenders in Greenwich, your REALTOR will be able to provide you with that information.


4. Finding the Right Property:
The search for your new home is truly a joint effort between you and your REALTOR. Be as open with your REALTOR as possible about your likes and dislikes. It is very important to tell your REALTOR what you like about each house you visit so he/she will begin to understand what you are looking for in the home you wish to buy. Between your input and your REALTOR's professional skills, the search will narrow until you ultimately find the "right" property for you.


5. Making an Offer to Purchase:
Once you have focused on one or two properties, your REALTOR will be able to provide you with market data on recently sold properties. This information will help both you and your REALTOR formulate your offer. Working with your REALTOR, you will be able to determine where you would initially like to start with your offer price. You should then develop a set of strategies, each dependent upon how the seller responds to your offer, so you do not end up "reacting" to any counter offer made by the seller.
The offer may include, but is not limited to the following:
  1. The Opening Offer Price that you are willing to pay.
  2. Financial Contingency requirements, amount of your mortgage and date by which you will receive a written commitment.
  3. The Closing Date upon which you will take ownership of the property.
  4. Inspection Contingencies (building, radon, lead paint, termite, well, septic, survey, etc.) usually termed "all physical inspections".
  5. Other Contingencies, if any, that are to be identified and included in a Contract of Sale along with dates if appropriate.
  6. Identification of the Inclusion and/or Exclusion of any "personal property" (washer/dryer, etc.).
  7. The date you will sign the contract and give 10% of the purchase price as earnest money.

This complete offer is then presented by your REALTOR to the Listing Agent for the property. The seller may respond in any one of the following manners:
  1. The seller may totally reject your offer without giving any counter offer.
  2. The seller may counter your offer with one of their own.
  3. The seller may accept your offer as it was presented.

Once a verbal agreement has been reached, a written "Offer to Purchase" is prepared by your REALTOR outlining the terms agreed to by you and the seller. This document is then transmitted to the Listing Broker and the attorneys of record.


6. Finalizing your Financing:
After an offer has been accepted by the seller the lending institution you have chosen will require an appraisal on the property to be mortgaged. The institution will send one or sometimes two appraisers to do a thorough inspection of the property to determine whether the property will qualify for the desired mortgage. Once the institution agrees to finance a particular property, they will issue a commitment letter whereby they agree to provide a certain dollar mortgage at a specific rate for a specific time and the buyer is assured the financing is in place.


7. Utilities and other details:
Your REALTOR will remind you about two weeks prior to closing that the appropriate utilities and services need to be notified in order to transfer the accounts to your name. These include, electric, gas, oil, propane, telephone and refuse. They may also include pool services, yard maintenance and more. During the same period the seller will be contacting the same providers to discontinue the same services. This transition needs to go smoothly to protect you from having to pay a "connection or hook up fee" because the service was completely terminated. Your REALTOR can help you with this, but the companies now require the new homeowner to initiate requests for service.


8. The Contract:
The seller will instruct their attorney to draw the Contract of Sale to include the terms agreed upon. Your agent will ensure that, at the same time, your attorney receives the necessary information so that he/she can begin their work and be prepared to receive and review the contract. Your attorney will review the contract from your perspective and insure that your interests are protected (such as including stipulations for delays, searching of Title, type of Title to be conveyed, cleanliness of the premises at the time of closing, etc.) The timing of this, dependent upon the complexity of the terms, should all take between five to ten days from accepted offer to signed contracts. You will normally be expected to submit an escrow check in the amount of 10% of the total purchase price (made out to the seller's attorney) with the signed contract.


9. Closing Day:
On the day of your closing, you and your REALTOR need to perform one last walk through of the premises. Together you will look to insure the property is in the condition is was when you signed the Contract of Sale. You will verify that the items to be included are present. You want to make sure the house and grounds are as specified within the contract and most important that there are no defects visible now which were previously hidden.

You (or in your absence, you power-of-attorney) will attend the closing - primarily to sign appropriate documents and deliver checks for appropriate amounts. If your situation dictates, you may actually meet with your lender immediately prior to the time of the closing to sign your mortgage papers. Between your REALTOR, your attorney and your lender you will be advised ahead of time of all the costs and fees associated with your closing.


10. Typical Home Purchase Costs:
  1. Points or loan origination fee.
  2. Adjustment of interest on loan from date of closing.
  3. Title Insurance (one-time fee required by banks).
  4. Credit check.
  5. Bank appraisal.
  6. Attorney's fee.
  7. Survey fee: If the property has not been surveyed, the lender to Title Insurance company may require a registered survey or plot plan showing the location of the dwelling(s) and the boundaries of the property, as well as easements and rights of way.
  8. Recording Fees: The buyer usually pays the fee for legally recording the new deed and mortgage.
  9. Homeowners Insurance: Proof of a current policy is necessary at closing. Adjustment costs paid to the seller at closing (where applicable)
    1. Buyer's share of pre-paid property taxes.
    2. Heating oil or gas remaining in tank(s).
    3. Association dues.
    4. Sewer service charge.
  10. Inspections made of the property (normally incurred prior to closing) which may have been performed at the request of the buyer, pest, structural, radon, lead based paint, well, septic, etc.
  11. Private Mortgage Insurance (PMI) if financing more than 80%. Tax escrow, if necessary.

Greenwich Real Estate - Selling A Home - Greenwich Homes For Sale At Inside GreenwichRealEstate.Com

SELLING A HOME:


1. Selecting a REALTOR:
Choosing a REALTOR is the first step in the home selling process. The selection of a REALTOR in a community like Greenwich is made easier by the presence of the Greenwich Multiple Listing Service. Almost every real estate agent in the community is a member of the Greenwich MLS, giving each REALTOR access to all properties listed in the MLS. You could start the search by asking your friends or your attorney to recommend a good candidate for you. Although a Real Estate company's reputation is important, your relationship will be with the Agent himself/herself. The REALTOR you choose should be a full time agent with broad experience and total knowledge of the market.



2. Preparing Your Home for Sale:
Everything in your home needs to be looked at through the "eyes" of the buyer. Your REALTOR should be able to help you with this. They will suggest things to be done to the property to ensure the highest price, such as painting (interior and exterior), removing valuable objects and "decluttering", having the windows washed, gutters cleaned and making other minor repairs that may be necessary. You should expect your Agent to be very frank with you about what your home may need to facilitate a timely sale.


3. Documents and Marketing Program:
Once you select a REALTOR you will be requested to sign a listing contract, a Greenwich MLS data input form, a State of Connecticut "Residential Property Condition Disclosure Form", and a U.S. Environmental Protection Agency Disclosure Form regarding lead based paint hazards (for properties built prior to 1978). Your Agent will review these documents with you, and if you care to seek legal advice, then do so before signing. Selling your house is disruptive and can be intrusive into your every day life, but your agent will work hard to minimize this.


4. Broker Open House:
The listing REALTOR of your property will schedule an Open House for the other REALTORS who are members of the Greenwich MLS so they may preview it. This helps REALTORS determine which of their customers might be interested in viewing your house. The Open House schedule in Greenwich is specific to certain times and sections of town allowing REALTORS to see as many Open Houses as possible in the given time frame. At the Open House the listing REALTOR will provide information, such as the listing itself and plot plans, and is available to answer questions about the properties.


5. Showing the Property:
The REALTOR will acquaint you with the various means by which a property can be shown. First, there is the installation of a keybox. This method allows the greatest access, because the only scheduling required is for the REALTOR showing the property to confirm with the homeowner that it is convenient to bring a prospective buyer over for a showing.

Somewhat more restrictive is the method by which the listing REALTOR alerts MLS members that a key to the property will be held at the listing office and a confirmed appointment would need to be made through the office.

The most restrictive method of showing is to require the listing REALTOR be present at the showing. This requires more scheduling between the homeowner, the listing REALTOR and the REALTOR who wishes to show the property to a client.


6. Considering an Offer:
When someone is interested in your property they will make an offer to purchase through their REALTOR. Your REALTOR will take you through this process. Some terms which may be included in the buyer's offer are:
  1. The offer price the buyer is willing to pay.
  2. The mortgage contingency requirements, amount of mortgage they are seeking and the date by which they will receive a written commitment removing the contingency.
  3. The closing date upon which Title and ownership of the property will be transferred to the buyer.
  4. A list of the inspection contingencies and when they will be lifted.
  5. Other contingencies (i.e. sale of home, etc.)
  6. Inclusions and/or exclusions of any "personal property" which may be a condition of the purchase.
  7. The date by which the contract will be signed and the buyer will provide 10% of the purchase price.
Once you and the buyer reach an agreement of the "terms and conditions" for the purchase, an "Offer to Purchase" is prepared by your REALTOR outlining the agreed upon terms. This document is then transmitted to the attorneys for buyer and seller.


7. The Contract Process:
The seller is responsible for having the attorney draw the Contract for Sale which will include the agreed terms and conditions. The buyer will normally be expected to submit an escrow check (made out to your attorney) with the signed contract, usually in the amount of ten percent of the total purchase price. The contract is typically a Greenwich Bar Association contract which will contain every detail and a schedule of inclusions and exclusions as agreed upon by both parties. The Seller Disclosure Form is also delivered as part of this package. After the buyers have signed the contract, it is returned to your attorney with the escrow check. Your attorney will then go over the contract with you and you will sign it.


8. Before Closing Day:
Near to the date of your closing the buyer's REALTOR and the buyer need to perform one last walk-through of the premises. Together they will ascertain that the property is in the condition it was when the Contract of Sale was signed. They will verify the items which were to be included are present. They will determine whether there are any defects visible now which were previously hidden. If any of these are found, you may need to be prepared to adjust for these costs at closing.


9. Closing Day:
You (or in your absence, your power-of-attorney) will attend the closing - primarily to sign appropriate documents and deliver checks for appropriate amounts. Between your REALTOR and your attorney you will be advised of all the costs and fees associated with your closing.


10. Costs Associated with Selling a Home:
Attorney's fee:
  1. Town of Greenwich Conveyance Tax ($2.50 per $1,000 of Sale Price). State of Connecticut Conveyance Tax ($5.00 per thousand up to $800,000 and $10.00 per thousand of $800,00).
  2. Survey Fee: If the property has not be surveyed, the Lender or Title Insurance Company may require a registered survey or plot plan showing the location of the dwelling(s) and the boundaries of the property, as well as easements and rights of way. This might fall on the seller's shoulders.
  3. Adjustment costs paid to the seller at closing (where applicable):
    1. Buyer's share of pre-paid property taxes.
    2. Heating Oil or Gas remaining in tank(s).
    3. Association Dues.
    4. Sewer Service Charge.