Real Estate Information

There are a number of Greenwich, CT real estate bloggers out there today.  Some are famous, some are infamous, and others are trying to get noticed.  I don't know exactly where I stand in the crowd, but the intent of my blog is simply to present the facts---I figure most of you are smart enough to draw your own conclusions.

This approach is based on my past journalism college courses taken 100 years ago.  Once upon a time, journalists were revered for presenting the true facts without "spin."  Just the who, what, when, where and how info.  Those where the days, my friend!  I find most of the journalists/bloggers today all too busy wondering how they look on camera and how their expose will benefit the author, not the subject matter.  You won't find me revealing the names of buyers or their addresses.  There is such a thing as respect for one's privacy and frankly, I won't put someone's family in peril by disclosing their new address as some other bloggers have recently done.

So here's my thought for today---it's one of those wordy math problems about if the train is traveling 30 miles an hour and Chicago is 300 miles west of....

If there are 883 properties for sale in Greenwich, CT today and year to date in 2009, there have been a total of 36 closings and tnow 30 homes are under contract, how many years will it take to sell the current inventory at the current rate of sale? 

Answer:   Just over 3 years, if no other homes come on the market!

Here are the Top 5 Things That Buyers Don't Like About Your House:

1.  SMELL...Believe it or not, the #1 complaint among prospective buyers were unpleasant odors in the home.  The major offenders were smoke, pet odors, and strange cooking aromas.  Some in the discussion said they turned right around and walked out because they found the smells so oppressive.  Most of us are unaware of the 'peculiar' odors of our homes because we become immune to the smells - the buyers are not immune to these same odors.

2.  CLEANLINESS...This is simply incomprehensible---I've had sellers unwilling or unaware of the need to clean thoroughly before a showing.  I'm not talking about home staging (which will help) or even unrealistic expectations of the home being spotless - just simple old-fashioned cleaning.  Selling your home can be a bit inconvient, but when you have advance notice that a buyer is coming to view your home - clean it up!!!  At the very least, remove the pile of dirty dishes from the sink.  Call me for "How to get ready for a showing in 10 minutes or less!"  

3.  SELLER AT HOME...Most buyers felt very uncomfortable with the seller is present during a showing.  Many said they could/would not take the time to really look at the features of the home because they were in such a hurry to get away from the seller.  This is a real problem homes for sale by owner, as they are usually the ones showing their own home. 

4.  CLUTTER...This isn't the same as cleanliness.  We have all seen it on the home shows, many buyers have a hard time seeing your home because of all the stuff.  Just remember, buyers only know what they see, not what "can be".

5.  UNFINISHED PROJECTS...If you are planning on selling your home, finish up any on-going home improvement projects before placing it on the market.  Homes with half-finished painting, flooring, trim, etc. gave buyers a bad overall impression.  "Unfinished projects" translates into "poor maintenance" in the buyer's mind!

But, none of these matter if your home is overpriced.  Buyers really hated it when the homes were priced above what the market indicates.  An obviously overpriced home discourages offers because the buyer believes it is an indication of an unrealistic and unreasonable seller.  The more out-of-line your price is with the current market, the longer your home will sit unsold and the more inconvenient the process is for you (the seller).

If your home is priced correctly and you have addressed all these items above, it will "cut to the front of the line" of possible buyer choices by comparison to the other homes on the market. 

This great article was written by Pam Simpson, a realtor in Mississippi (http://www.mshomeinfo.com/)  Read what this "steel magnolia" has to say carefully!

   Disclaimer:  All information provided by this author may be  based on information collected from several sources and is believed accurate but not guaranteed.

If your portfolio isn't looking so good, maybe it's time to consider investing in Greenwich real estate. 

Today's turmoil has clouded our memory about how well the long term ROI on residential real estate has been for American families.  Even with the current economic downturn, we've enjoyed an impressive track record over the past 30+ years or more.  Those buyers who purchased since 2005 may be disappointed that they can't expect the same continuation of rapid increases in home prices, and some may experience a decline in their home's value.

This highlights the normal cycles in any market.  Timing when to buy or sell in the housing market is very tricky.  Many potential homebuyers today say that "I'm waiting for home price to bottom out before I buy."  But if you take a long term view, you'll see that buying a home at its absolute lowest possible price isn't realistic or even IMPORTANT.  Of course, none of us is wise enough to know when housing prices will completely bottom out, and waiting on the fence can be costly, especially if you lose the house you love.  Remember, a home is not a commodity, it's where you live your life, have a family and build memories---it's where you'll take those birthday party photos that you'll treasure for a lifetime!    

So buyers are best advised to take a long-term view of homeownership.  Remember, housing has been a sound way to build long-term wealth even without the explosive increase in home prices we saw between 2000 and 2006.  Homeowners are getting something in return for their monthly mortgage that renters never get:  increased home equity.  Assuming that the homebuyer is able to ride out the down cycles---that is, doesn't have to sell the proeprty after housing prices have fallen ---then that bargain gets better over time.  Rents normally rise over time while principal and interest payments on a fixed rate mortgage stay constant.  And that's before adding in the tax advantage of homeownership, including mortgage interst deducitibility and exclusions from capital gains taxes.   

We've all heard repeatedly about the President's new stimulus package but I, for one, didn't know exactly how it would impact me or my Greenwich clients.  Many of us are wondering "what's in it for me?"  As Greenwich property owners with "jumbo" mortgages, most of us won't qualify for any assistance, but we'd all like to know the facts, and it's hard to get answers if you're on the go as much as I am (and I suspect you are, too!).

This article clearly defines the newly announced details.  It's a well written "primer" on the newly announced mortgage bailout stimulus package.  I'd recommend it to anyone who is wondering whether or not there's help on the horizon.  Even you you can't use it, you may be able to help someone else by passing the info along.   

http://money.cnn.com/2009/03/04/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009030414

The 2009 Greenwich real estate market has thus far slowed dramatically compared to 2008:

INVENTORY RECAP YTD thru 2009 vs. 2008

Please note that not only did the number of units decline, but the median price is also diminished.  Lack of consumer confidence, job insecurities and mortgage difficulties all contribute to the problems facing today's Greenwich real estate market. 

If you can qualify for a mortgage, it's an incredible time to buy.  Please recognize the perfect storm that this market represents:  the lowest prices we've seen in years, lowest mortgage rates in 30 years and for first time buyers, an $8000 tax credit! 

We've seen recently that the national, regional and now the local media is filled with the negativity that fuels the panic now paralyzing the real estate markets.  Of course they are hyping anything that will sell their valuable air time & newspapers,  What they aren't telling you is that in certain markets, home sales are actually picking up.

What's that got to do with Greenwich?  Greenwich single family home sales have only been affected slightly by the overall downturn until Wall Street layoffs began to take their toll on local residents.  Now we're seeing home foreclosures and bankruptcies being reported in Greenwich.

Home prices will stabilize and increase in years to come.  Buying a home isn't just an investment.  It's where you LIVE, raise your family and create memories that should outlast any ecomonic trend.   If you can buy a home in this market, you definitely should take advantage of the unusual confluence of low prices, low interest rates and highly motivated sellers.  please don't regret not buying if you can, especially if you are a first time home buyer who can also benefit from the tax credit now offered in the economic stimulus package now offered.

I've said it all before, but don't listen to me.  Take a lesson from history.  Greater minds than mine seem to be on the same page.  Check out this article that better illustrates my point:  http://rismedia.com/2009-02-19/commentary-house-prices-will-rise-greatly-over-the-next-few-years-buy-now/#

For many years now, I have created a weekly report called the Lewis Report, which lists all Greenwich single family home activity.  It's now located in the Suggested reading area of this website, now available without a "gate" requiring any signup or exchange of info such as your email address. 

I have considered whether or not the same type of info would be of interest on condos and/or rentals and perhaps broken down by area (even though the areas are noted on the report itself)?  Does anyone have a preference?  I do this for my readers, not for my own edification, so please let me know your thoughts and watch for changes in the next few weeks.

In a few weeks (Tuesday, March 3 7pm at GHS), I'll be conducting a course at Greenwich Continuing Education about downsizing, a topic that's on the minds of many Greenwich homeowners right now. 
Take advantage of the $500,000 per couple capital gains credit ($250,000 for a single person) and enjoy a simpler, easier and new lifestyle. Thinking about downsizing?  An empty nester?  Want to cut your expenses without forfeiting your lifestyle?

Join Kaye Lewis of Sotheby’s International Realty and a panel of experts to discuss the pros and cons of downsizing your home.  You will learn about the real estate process, current local market information and the best strategies for buying and selling in the current market conditions, from a panel of experts including an accountant, real estate attorney, mortgage lender and insurance experts who will be available to address your concerns. 

This will be a lively and interactive discussion, so come prepared with your questions. Email any questions in advance to hKaye@KayeLewis.com to ensure your concerns are addressed. We’ll take additional questions as time allows. 

You can register for the class by clicking on this link:

http://www.greenwichace.org/CourseCatalog/classView.asp?id=6537

This information from MoveAdvocate could be useful if you moved in 2008...

It seems that 2008 is over and now is the time that you are beginning to think about taxes. Many of us are getting our records in order in preparation for tax day, April 15, 2009. If you have made a move this year, deducting moving expenses may be on your mind. But are all expenses allowable tax deductions?

The IRS does allow tax deductions for some of the costs associated with a move to accommodate a job in a new location. There are, however, two tests which must be met in order to qualify for deductions.

Test 1 - Distance Test
To qualify for a deduction, your new principal workplace must meet a 50 mile test. The distance between the old home and old work minus the distance between the old home and the new work must be greater than 50 miles. In other words, if the commute to the old workplace was 3 miles, a commute from the previous home to the new workplace must be at least 53 miles. If the person did not have a job before moving, then the new job must be at least 50 miles from the previous home.

Test 2 - Time Test
A person must work full time in the general area of the new workplace for at least 39 weeks during the 12 months right after the move. There are exceptions to the time test and other rules apply for those that are self-employed.

If you are not sure if you meet the requirements to deduct your moving expenses, it is best to check with a tax advisor or visit the IRS website, Publication 521, and Form 3903 for more details.

If both tests are passed then some expenses may be deductible:

• Costs for packing, crating and movement of your household goods
• Up to 30 days of storage and insurance for household goods
• Transportation and lodging expenses (not meals) while traveling to new location

PLEASE...check with a tax advisor before deducting these expenses to make sure that they take the right deductions. According to Forbes, one of the top reasons for IRS tax audits is claiming too much for itemized deductions, including the deduction of moving expenses.