Ben Anton, Residential Real Estate Brokerage » benanton

All Used Up

benanton — Tue, 03 Apr 2012 20:55:20 +0000

I had a thought today and said to myself I should have a blog and write about that. I guess it has been a while since I “blogged”.

I was asked to value a rental property from the hip. I made some assumptions and with the aid of my spreadsheet I gave a pretty tight range in minutes. Then I walked past it and thought, well, that place is all used up.

One of my assumptions was that the home had been cared for, that is was a healthy asset. This really goes back to my a home is an investment (bucket with a hole in it) that requires maintenance and care both to keep from depreciating (leaking, to fill and to keep full.)

If you own a property, and have milked it of too much value, by collecting rent, living in it care free, not being a good steward, letting things go, then your home may be nearly used up. How much is it worth? How much have you not used up?

Don’t think your short cuts and indifference were decisions made with no cost. Make it a parenting example or whatever is easiest for you to relate to. If you were not a present and active parent, don’t expect your child to put you in the best nursing home, or to cash in on huge gains in real estate. In this market, you’ll be lucky if they go to a good school and move out of the house by the time they are 20.

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Good Hands

benanton — Thu, 30 Jun 2011 21:13:53 +0000

This AM I was pulling up to the parking lot of my office when my path was blocked by a squad car and a menacing traffic officer. It seems the lot was now a victim staging area. I had to ask, “Victims of what?” I was then told there was a really big fire.

As it were, an historic 24 unit apartment building on Webster, that also housed the Underground Food Collective and a salon was ablaze.

As a landlord I imagined myself in that predicament. First I would be relived to know that no one was hurt or even worse died. As of now, I believe that it the case with the fire today.

Second I would pray it was not my fault. Certainly it could not be my negligence, but what if the fire came from the building, the electrical, the furnace?

Then I would hope the cause was found, and almost that blame could be laid somewhere, why, I’m not sure. Comfort, closure, someone for my insurance company to sue?

Then I thought not only about the people that lived there, but those that planned on moving out or in this coming August, as the student rental season begins.

Every time I sign a lease, I read aloud the suggestion that a renter get insurance to cover their belongings. A landlords disaster insurance policy will insure the home, but not the contents. Generally only about 100$ a year for thousands of dollars of coverage, you can certainly see the cost/value equation this would have for the residents of the 24 now vacant units on Webster.

So get in some good hands, call that Salamander, whoever you care to. Losing your home could be just the start of a bad day.

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Good Fences

benanton — Fri, 15 Apr 2011 17:15:40 +0000

The last week has been a hectic one, it seems everybody is “getting back to work”. Fencing, not sword play but the screening and privacy type, came up several times with both current clients and a few that have already bought. When I shop with buyer’s we are always looking at the houses next door to get a feel for the neighbors and how much value they add or detract from our love of the potential new home. Sometimes the best solution is keep looking and sometimes the best solution is a fence.

I took a call yesterday about the specific rules and regulations regarding fences. There are a couple resources people in Madison can turn to. I would first locate your boundaries. A look at the City of Madison’s Assessor website is the place to start. Look up your home, find the frontage dimension, and have a look at the plat map. You should be able to use the lot area, map and frontage to figure out the dimensions and give you a good idea as where to look for the lot stakes.

Once you have decided where the fence will go, then you need some guidelines. You will not need a permit for a fence but you should know the rules. The city has compiled this pamphlet with all you need to know. As far as best practices in building the actual fence, well, you’ll have to have me over for a beer. I have built quite a few and they are all still standing. Good luck and for your sake I hope your neighbors like your new fence too.

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What if?

benanton — Thu, 27 Jan 2011 00:20:42 +0000

I often wonder what would have happened if insight or experience had not told me to make the call, or second guess. I was half way through negotiating a counter offer on a near east side home for a client. We were hung up on some inspection language. They had checked yes in the c21 line of the condition report, something to the effect that conditions exist that by state or local law require repairs.

There was no mention of citations or violations, just that the electrical was not up to code. Technical language from a lay person is not uncommon in my business and I accepted it as that. This home was in such sad shape even a lay person would know that it is not up to code.

So this AM I decided to call the city and negate the need for additional language. “Are there any work orders or citations?”‘ I asked. That was my only real concern, let’s make this simple.

I was transferred to Al, the guy who had already planned to visit tomorrow after a complaint was made. (That complaint probably came from some agent that showed the house. Sad but true they are mucking up my deal.)

So there were, or at least will be citations against the home. Had I called a day earlier they would have said there were none. The lesson here is call the building inspector and see what the deal is, maybe even twice.

Next step, decide how to best use the information. Post sale to-do list or bargaining power?

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The Title Company, a necessary evil?

benanton — Thu, 13 Jan 2011 22:12:07 +0000

Maybe this only happens to me, but every once in a while people will get down on the title company, calling them vultures of the real estate industry with their nickel and dime fees, added costs and perceived bureaucracy. I had never called them all those names but they do sell title “Insurance”, which as Ned Flanders the devout Christian on “The Simpson’s” will tell you is a form of gambling. Title Insurance as we know it today replaced the previous practice of a lawyers review of a properties abstract. So let me tell you what I just did. At the advice of several folks in the insurance, tax and real estate industry I am transferring ownership of the two rental properties my wife and own to an LLC. Anton Homes LLC to be exact. The quit claim deed can be used in this circumstance. It allows and individual to transfer whatever right they have, limited or total, whatever they are to another party. As Sandy and I will transfer it to ourselves, we did not need a title search or insurance, just a deed with our signatures, and our signatures.

Simple, Right? Wrong, you forgot about the government and taxes. We will not be taxed on the transfer as we are married but are still required to file a transfer return. This tedious process can only be done on-line and was clearly not designed to be consumer friendly. It was ridiculous. I gave up 2/3rds of the way through and called Jeanie the title lady. It was that poorly designed difficult to work with. So while a title company does have all sorts of fees and costs and perceived layers of bureaucracy, they also specialize in dealing with and creating a buffer between the consumer and other agencies, governmental and/or financial that have even greater costs, fees, and countless layers of bureaucracy.

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1.5 volts and 30 degrees

benanton — Sun, 19 Dec 2010 20:31:05 +0000

What costs about 3$ is keeping your home from filling with water? One, maybe 2 AA (double a) batteries.
Most homes these days have a digital thermostat. They can often be programmed to drop the temp when you are sleeping or away. This can mean big savings annually on your heating bill. This technology does however create a risk. Without a double A battery or two you can’t heat your home (there are ways but they mean paper clips and tape MacGyver style).
In the last week I have talked to two homeowners with a low battery. One owner of a just purchased home was left cold, puzzled and concerned. The other, a vacant listing. That vacant listing would have had the opportunity to advertise a lower level swimming pool had it not been found in time.
No batteries means no heat and with temps in the single digits that can mean frozen pipes in days. Sure they won’t leak until they unfreeze but still.
For your own home you may be fine simply replacing the batteries every year or so. If you have a home that is often vacant or you are away for long spells, I would consider a second mechanical back-up thermostat. It could be set at safe but lower temp in case of failure or something as simple as low batteries.
Be prepared and know that the solution to your no heat situation could be as simple as new batteries. Also know that keeping your home safe and dry could be that simple too.

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The Zip Strip Drain Cleaner

benanton — Mon, 22 Nov 2010 20:35:22 +0000

I might have made this up or heard it somewhere. “A hammer tends to address all it’s problems like they are nails.” Sometimes I make the same mistake. I can disassemble a sink’s drain assembly and I have a snake attachment for my power drill so when I have a clogged drain, I get to it. It is usually messy, takes longer than I thought it would but the result, a clean smooth running drain follows shortly after. I am also generally leery of impulse items at the store or things sold on TV. Until now…

I paid 3 bucks or so for a Zip-It clean drain cleaner. It was so easy and cool I am making my experience a part of history with this blog entry. Stuck it in, pulled it out. Done. It was still gross but it was done. After being blown away by the ease of use I Googled it and found that that raunchy web highlights show, Tosh.0 had recently featured home videos of people cleaning their drains. So I’m no early adopter but I don’t care, neither does Sandy who can now shower without wading in water up to her ankles.

http://zipitclean.com/

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The Neighborhood Networker

benanton — Sun, 26 Sep 2010 17:22:46 +0000

I shy away from networking events. They seem fake and forced. The ability to show up, drink average beer, and pass out cards is not an indicator of excellence in any industry I am familiar with. That being said I love making connections. If you know me well you have probably heard me say “I know a guy.” When Isthmus reporter David Medaris asked around his office about where to start an article about neighborhood handy-people, someone said, “I know a guy.”. That guy was me. Have a read of this Isthmus Abode feature story.

thedailypage.com/isthmus/article.php?article=30560

Unlike my last few brushes with media fame, David did ask and include in the piece what I do for a living. Good job David.

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White house, blue house, old house, new house?

benanton — Thu, 05 Aug 2010 15:40:16 +0000

“Depreciates $2000 the minute you drive it off the lot.” We’ve all heard this justification for buying a used car versus a new one but how well does this relate to housing. Unlike cars, homes are supposed to appreciate. It was not until the most recent years that we have seen the opposite, or at least the less than stellar appreciation of years past. So which does offer a better value, older homes or newer?

Don’t think just about the house but the whole package. An older home is generally going to be in a more established part of town. There will be little guessing what the neighboring properties will look like, what local businesses thrive and what people and amenities the area has to offer. Making a bet or taking a risk on this neighborhood can be done with far more information backing up your decision.

To the contrary, or even the extreme opposite, if you buy a brand new home in a brand new subdivision you have far less information to back up your decision. How well does the neighbor take care of their lawn? You may not know for years. How large will the neighboring homes be? How long will it take for the developer to fill the subdivision? Will changes in the market affect these plans? If you see value in information and an ability to better predict the outcome of your purchase, then an older home may offer more value. If you see value in crisp finishes, walk in closets, integrated technology and a theater room you may find more value in a newer home.

The most important thing is that you see value and that you feel those values are shared by many. It is easy to pick a house you want to buy but few people remember they are also choosing the house they will someday have to sell.

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The Coop Scoop

benanton — Mon, 02 Aug 2010 15:12:07 +0000

You may or may not know that I keep some chickens in the yard so if that is a pre-requisite for your next real estate agent, we’re all set. If it is merely and added benefit that your agent can advise you on coop design and the suitability of your yard for poultry raising then that is okay too.

Recently our coop was featured in the Madison Magazine. The print version featured a photo of my lovely girls (Lola and Evelyn) so the on-line version is far less attractive but here it is.

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