Ben Anton, Residential Real Estate Brokerage » buying a home

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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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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Paying The Piper

benanton — Sun, 11 Apr 2010 18:39:29 +0000

From an early age we learn lessons about our behavior and it’s consequences. Losing allowance for the household treasure you lost or broke, losing your car insurance because you drive like a teenage idiot boy are decisions that cost you money and teach you lessons. Why then is it so hard for people to understand that if you make a poor choice in buying, maintaining, renting, remodeling, or selling a home you may have to pay the price (or often more appropriately lose the money)? Have we been spoiled for so long and treated with kid gloves regarding housing that the idea of losing money in real estate is inconceivable? If there is a potential gain, there is also a risk. We all knew the growth real estate had seen could not last forever. Why then is the final end of the ride so surprising and disruptive?
If your decision turned out to be a bad one, don’t be the victim, address your hurdle and overcome it. If you lose now, you’ll appreciate winning even more next time. Learn from it and move on.
If you are going to buy a home working with a trusted partner, someone who values you and the deal equally, and who will someday proudly help you sell that home will help minimize your risk. It will still be there, but you will have protections and advantages others do not. I can be that guy.

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The List Price

benanton — Thu, 01 Apr 2010 18:03:47 +0000

Yesterday I showed a home on the Isthmus with a list price of 141k. It sold just a few years back and had seen some recent updates but was priced below what the current owner paid and was languishing on the market. The home also had a list, as in the eastern edge of the home was probably 6 inches lower than the western edge. Other than the obvious difficulty of frying a decent egg on a stove that was not level, it was a fine house. Keep in mind that in hot markets or even in areas perceived as hot, you may feel forced to accept less than the ideal. Make sure that whatever you buy will be acceptable to the next buyer in a potentially less attractive market and you’re covered.

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Do you need an agent to buy a home?

benanton — Fri, 26 Mar 2010 16:12:54 +0000

I pulled this from one of the local FSBO websites in Madison. I thought I might do some point, counterpoint.

Do I need an agent?

No! If you’re buying a FSBO or a Flat fee property they diminish the sellers ability to bargain.

Yes, working a commission into your offer could eat up some of the seller’s wiggle room. Your not working with an agent could just as easily allow you to pay too much. Will the seller of this home critically review recent sales and help ensure you are not paying a premium. In my experience, most fsbo sellers anticipate the likelihood of compensating an agent and make allowances. Keep in mind that even though this seller has chosen to go without representation, they will see some value in the involvement of a professional, if for no other reason to facilitate and see the home to close. This does not even take into account the problems that can arise during an inspection or appraisal. It might be nice to have someone around that does this kind of thing for a living.

No! They get paid when you close so they want to close, close, close!

That’s just stupid. They get paid when you close, fine. It will come.

No! When you pay too much they get paid more!

I get 3% if you pay too much, once. If you get a sweet deal, I get a commission from your buying a home, your selling a home, your co-worker buying a home, your grandmother, you get the idea.

These two just seem like playground taunts. The sooner you close the better for them. The more discerning you are the worse for them. Sure, if your agent is a lousy, then yes.

This is when they think it is a good idea and I guess I agree.

If you’re buying a “full service” MLS listed property you should have an agent, but only if you have a buyer agency (BA) agreement. Without BA “your” agent works for the seller. With BA the agent must legally represent your best interests.

If an agent shows you a property they’re “your” agent for that property. If you don’t have a BA with them you’ll be locked into representation with an agent who is legally obligated to put the interests of the seller above yours.

For the seasoned real estate purchaser there are arguably benefits for working directly with the listing agent but a buyer’s agent is always a safe bet. It appears to me that working with an agent, in particular a buyers agent, triumphs. I know a decent one if you are in the market.

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Fixer Uppers

benanton — Tue, 02 Feb 2010 18:38:57 +0000

So you’re interested in a fixer-upper but you have not owned a house before. Consider these points as you begin your search:

1) Buy in the best neighborhood you can – This point sounds obvious but buying right will be the single most important item in determining whether you are financially successful or not. Location is so important. Take your time to find the right house.

2) Make sure the house has the basics 3 bedrooms, 2 bathrooms and a minimum amount of square feet (determined by neighborhood norms). Also, consider things like lot size, lot location and whether there is a garage. If these are things that are norms for the neighborhood, your house should have those as well.

3)Find the home with good mechanical systems – Find a dated house that has good systems. The furnace, A/C, water heater, electrical, plumbing, basement/foundation and roof. These are things that every buyer wants to be acceptable at a minimum level. You won’t get a whole lot extra when you sell for redoing these components, but you might spend a lot extra if you have to improve them. These components are also the ones that you will more than likely have to hire out for. If you go into a house that has systems that are ancient, look closer at the rest of the house and definitely take into account what it will take to get these systems up to an acceptable level.

4) Look for the potential – When I look at a house, the first thing that I look for are unfinished spaces that can be finished inexpensively that will directly add value to the house. These are usually unfinished attics and basements. When you finish an attic or basement, you directly add value to your house for a minimum price. It could also propel the house into a new price category, if for example, you can make a 2 bedroom house a 3 bedroom house.

5) Strongly consider the kitchens and bathrooms – Kitchens and bathrooms sell houses. If you have a house that has a floor plan where the kitchen may always be small or dysfunctional, you might want to reconsider the whole house. With bathrooms, try to get a least 1-½ bath. If you buy a house with just one, you need to figure out how to get that second bath in. Many people will not even consider a house with only one bathroom.

6) Be realistic with your budget – Most of the time, fixer-uppers always have a few surprises in store for you. So when you are looking for that right fixer-upper, plan that it will take more than your budgeted amount and will take more time to finish as well.Even the this old house people take an itemized budget and add about 20% more to it.

7) Work with the right buyer’s agent – Buying a fixer-upper is different than buying a regular house. Having an agent that knows what is involved in projects and remodels is one step better. The seller may be the last person to know (or admit) the house is a fixer-upper and thinks it is just as nice as the nice house that sold down the block. Even when you settle on a price, you are not done. The inspections will be more difficult, there could be defects and you’ll might even have to get reputable bids quickly to get seller concessions. A transaction like this is where a buyer’s agent really earns his/her money.

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The Bachelor and House Shopping

benanton — Wed, 20 Jan 2010 21:49:19 +0000

…and then Tyra said, I hate group dates. A recent Tyra show featuring one of the discarded bachelorettes sharing why she felt she was not the “chosen one.” She was never able to shine, to show her stuff. There was too much going on and she was unable to sell herself through all the chatter. I have never been on reality television but like this bachelorette, I too have suffered at the hand of the group date. When viewing home, especially occupied ones, it is easy to be distracted by photos, bad decorating. Even generally quiet folks are often willing to make a comment or remark about an odd style choice or dated feature. The more people on an outing, the more the comments and commentary can spiral and take over. I too am guilty of the occasional quip, it’s my nature.

In my years of helping buyers find a home I not had too many group dates but some buyers prefer to make the shopping experience a family affair or one for friends and loved ones to share in. You must be careful when doing so, it is so easy to get caught up in the joking and fun that you could easily overlook a gem in disguise or miss shortcomings. Enjoy the visit but make sure you stay centered, keep on task, follow a plan or the house your viewing could end up on Tyra, discarded for no reason. I too need to remind myself to do this, the more people on the outing the easier it is to get caught up in being charming and making certain to pay attention to the comments and questions of each person, making little to no time for me to work my craft. Yeah, that sounds cheesy but you get the idea. I just went back now to highlight the 8 or so important words in this post.

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Lawyers, Guns and Money?

benanton — Tue, 19 Jan 2010 19:27:15 +0000

For a moment yesterday I was contemplating what it means to have a lawyer draft an offer to purchase rather than a real estate agent, broker or Realtor. (You can ask me later how those are all three very different things.) I think I can sum it up by saying: A lawyer can get so bogged down in covering your ass that it may take some time for your ass to get an accepted offer. If you are buying a house from another attorney this may not matter but chances are you are not.

There are all sorts of little nuances that go into writing an offer. Expectations that need to be met, unwritten rules and standards. A lawyer will generally not know that a pre-approval letter should accompany an offer and that it has become expected and the lack of one could mean a counter offer. Do they know that an inspection contingency of 10 days or more may raise a red flag. Do they step back and ask what the terms of the offer will mean to the seller and their ability to accept it, or do they move forward with a single goal that has nothing to do with making a deal happen. In my own dealings with lawyers, after the offer was accepted and the deal underway, subsequent deadlines were often ignored or missed. If real estate is not their primary business, a single deal can easily get lost in the shuffle.

I am reluctant to suggest that lawyers go too far to protect their clients interest, as it might suggest that I stop short of that ultimate protection. I don’t. Years of experience and learning the nuances of the dance allow me to help a client achieve a goal while at the same time protecting their interests. If you just do one or the other you will be protected from risk, but not from the rain.

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The New Year

benanton — Tue, 05 Jan 2010 20:22:00 +0000

The new Real Estate year started yesterday, the 4th of January, 2010. The first business day of the year was a cold one, the low temperature was the same as the date, 4. By the days end I would see as many as 20 new listings in the area surrounding my home. These few square miles blossomed like a spring garden even though the sun only shone for 13 hours. What’s the rush you ask? Here is how I see it. The extended tax credit, $8000 for first time buyers and $6500 for move-up buyers, has a sunset of April 30th. That’s just 4 months away and I don’t think any sellers want to miss this opportunity. The new credit it written that there must be ab accepted offer by that date, and the closing will need to happen in the subsequent 60 days. I am certain the first few months of 2010 will be busy ones. My fear is that it will be busy like a be hive is busy, lots of buzzing, bumping, flying, and constant activity. The real story I want to know is how much honey will they make.

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