Merrimack Valley Magazine

Home Beat – Maintain Warmth and Comfort Inside Your Home

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New England winters can deliver heavy snow and bitter cold, which means discomfort for us and potential problems for our apartments, condos and houses. Issues often arise when cold air creeps into our homes. Here are some ideas for winter-proofing your residence in order to keep it warm and comfortable, allowing you to focus on the holidays and grandma’s top-secret cookie recipe, rather than having to call a contractor to fix your pipes. 

Lock your windows – According to Boston landlord and real estate agent Phillip Robertson, locking your windows prevents drafts. “My tenants will often call me and ask for newer windows,” he says. “They’re always amazed when I stop by and simply ensure that both sides [of their windows] are shut and locked. It makes a huge difference.” Locking your windows seals up spaces and gaps, especially in older models. This can stop cold air from penetrating your home, causing heating costs to skyrocket.

Regularly check exterior vents and chimneys – A common reason heating systems stop working is a buildup of snow or ice that blocks the vents around the exterior of the home. Most heating systems have sensors for carbon monoxide. If a heating system’s vents are blocked by snow, causing carbon monoxide to reenter the home, the heating unit will automatically turn off. If your heating system stops working during the winter, it makes sense to check the vents before making a service call. 

Update your thermostat – Older thermostats aren’t as energy-efficient as current models. You may be spending more money on heat than necessary if you have an older thermostat that isn’t providing an accurate temperature reading. Newer models have many functions that can make your heating system run more smoothly and therefore cost you less money. Many smart thermostats come with deals or discounts with heating companies and/or Mass Save. If you plan to change your thermostat, a quick search online can help you get the best deal.

Maintain your heating system – If you have neglected your heating system, it might be time to bring in a professional to service it. Required maintenance can vary depending on your system, but in general, changing filters and cleaning heating vents around your home can help keep your system working efficiently and your home warm and comfortable. 

Vincent Forzese, broker/owner at Realty ONE Group — NEST, says, “Simply put, your number-one priority in the winter is ensuring that your heating system is operating safely and effectively.” Forzese also stresses safety measures. “Even if your heating system is working, take safety precautions like ensuring you have carbon monoxide detectors and clearing flammable materials away from your furnace,” he says. 

Winterize outdoor irrigation systems – If you have invested in outdoor sprinklers or another irrigation system, don’t forget to winterize it before the snow begins to fall. These systems are prone to break or cause other issues if you forget to service them before the bitter cold sweeps in. 

 “Keeping a checklist is crucial,” Forzese says. “Homeowners should keep a list of activities they must complete [before] every winter. I suggest my clients use [the end of] daylight savings as an indicator to break out their checklists and begin preparing for the winter season.”

No matter how cold or snowy it gets this winter, these tips will help you enjoy the season.  

Home Beat – MAXIMUM Value, minimum Fuss

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Making the Most of a Sellers Market.

Merrimack Valley home sellers can’t help but smile as lines of prospective buyers pile in front of their for-sale signs. It’s no secret that we are experiencing historical shifts in the real estate market. During this period, homeowners hold remarkable leverage, but there are still numerous factors that can impact prospective sellers.

Currently, many sellers are receiving dozens of offers within the first few days of listing their home, but this is still dependent on certain factors. Homeowners whose asking price is unrealistic may experience significantly less traction than sellers who have used more conventional metrics to price their homes. Matt Swierk of Legacy Star with Keller Williams Merrimack Valley makes clear the dangers of overpricing, saying, “My sellers all want to sell their homes for the most money possible, but listing the price higher is actually counterproductive. Generally, if you list at a fair market value, you’ll generate competing offers, and that competition will ensure a better price for a home seller along with better terms.”

The terms Swierk’s talking about embody an essential element for the modern-day home seller to consider. Terms in a contract can range from a buyer waiving their home inspection contingency to a buyer depositing hundreds of thousands of dollars as a nonrefundable deposit. 

Home sellers enjoy a significant advantage, because many homebuyers, in addition to offering well above asking price, are also waiving contingencies that would allow them to easily walk away from the deal during specific periods of the transaction. Some sellers are sacrificing the highest monetary offer in exchange for one that has more attractive terms, such as no home inspection contingency or no appraisal contingency. Ultimately, this offers more closure for a seller because there will be less room for negotiation from the buyers through the duration of the transaction.

 

Many homebuyers are looking for turnkey properties — move-in-ready homes. Homeowners benefit from having their big ticket items and major systems in good shape. Some of these include roofs, heating systems, siding and septic systems. Homebuyers may have more room for negotiation if there is something like an obvious need for a new roof, which could easily cost them thousands of dollars after purchasing the property. 

Homeowners shouldn’t necessarily invest in costly repairs and replacements of their big systems for the sake of selling their property. It is important for a prospective home seller to consult with a real estate professional to ensure that a big-ticket item is worth replacing to maximize their home’s value. “Due to the high demand,” Swierk says, “I would advise many sellers to hold off on any major overhauls on systems. They’re better off keeping that money in their pockets to help them purchase their next home.”

Cosmetic touch-ups consist of more manageable projects that significantly boost the curb appeal of a home. Grab some paint and a roller and get ready to transform that ugly beige wall into a light French-gray masterpiece. Rip out that old carpet and replace it with vinyl planks. Homeowners can even do something as simple as painting or replacing their front door to help aid the overall look of the home. These smaller projects can go a long way and may cost significantly less than renovating the major systems. 

According to Vincent Forzese, broker owner of Realty One Group Nest, “It’s very important for a seller to reach out to a licensed real estate professional at least one month before listing their home.” And he adds: “Many sellers are underestimating how quickly homes are selling. Along with the usual decluttering recommendations, creating a game plan of where you’re going to stay is essential. It is not always possible to sell and buy at the same time in this market.”

We are experiencing one of the strongest seller markets in American history, but the question remains: Where are you going next? That question looms over many potential sellers.  

 

Home Beat – The Middle Market

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Although times are tough for homebuyers at every price point, those in the middle market face perhaps the most daunting challenge in the current climate.

Amid the pandemic, interest rates sank to historic lows, and that sparked a high demand from buyers. According to the Massachusetts Association of Realtors (MAR), median February prices for single-family homes and condos surged past figures for February 2020. Meanwhile, inventory reached new record lows. According to MAR, “Inventory is again hitting record lows as single-family homes are down 68.4% over February 2020, and condo inventory is down 33.6%, a remarkable jump from January 2021’s 64.0% and 26.1% respectively.”

Most frustrated by this change are the middle-market buyers who may be caught somewhere between lower-priced condos and single-family homes nearing the $1 million mark. Jarad Gagnon is a buyer’s real estate agent for Team Correia with Keller Williams Merrimack Valley. As of this writing, he is currently assisting over a dozen buyers in their home searches, many of whom are navigating through the middle market. “I cannot believe some of the things I am seeing out there,” Gagnon says. “Obviously, there is a major industry shortage, but that has changed a lot of the mechanics behind our process, especially when writing an offer to purchase contract for a home.” 

Gagnon’s concerns stem from recent practices that are becoming commonplace. “I dislike the trend of homebuyers waiving their home inspection contingencies,” he says. “We always advise our buyers not to give away the ever-important inspection [and ability to back out if problems arise].”

 

Home Beat Middle Market Mat 2021

The current market stretches a buyer’s willingness to waive home inspections, as well as the buyer’s finances. The vast majority of homes in today’s market are attracting offers well over the asking price. Some receive offers that are tens of thousands of dollars over asking, which can be problematic when it comes to a mortgage since mortgages require appraisers to determine a home’s value. If the home is considered overvalued by the appraiser, the bank will not fund the full amount that was initially offered by the buyer. “We actually haven’t had many of our offers run into appraisal issues,” Gagnon says, “but that certainly is a threat as the market continues to become increasingly competitive. If it becomes more prevalent, this could make the market even more challenging for middle-market homebuyers who are still counting on a lender to purchase a home.” 

Purchasing a middle-market home can be vexing for buyers who are generally reliant on a lender to afford their new (or first) home, but find themselves buying in a market where they are pressured to push the limits of what they can spend. Generally, a lender or mortgage broker will give buyers hard “ceilings” where their ability to borrow will be cut off. As home prices continue to skyrocket, the market increasingly favors those with large cash reserves since they do not require an appraisal. We may see a shift in which affluent homebuyers decide to search far below their price range to generate more leverage in order to generate more leverage through cash offers, a development that would be detrimental for middle-market buyers. 

Gagnon urges homebuyers to remain patient during this process, noting, “Just understand going into this that you are likely to experience rejection. Things are competitive, and you cannot guarantee anything, but keep your feelings of desperation at bay; that’s when things can become dangerous with the biggest investment of your life.” 

My advice? Potential homebuyers should ask themselves what they truly need in a home, and what they expect through the homebuying process. Once this is defined, they shouldn’t compromise their objectives solely because of the market of the moment.  

Source: MArealtor.com/press-releases/#1597514523793-c0408ec7-1c37

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