Life expectancy and the number of homes we own

I love listening to Public Radio every morning while I get ready to go to work.

Recently, I tuned in to Kara Miller’s Innovation Hub on WGBH. Kara was interviewing Andrew Scott, co-author of The 100-year life: Living and working in an Age of Longevity.

One of the main takeaways from their conversation was one astonishing fact that children born in wealthy countries since 2000 have got a more than 50 percent chance of living to 100.

To put things in perspective, less than a century ago, the lifespan for women in the U.S was 54 and for men a mere 50.

Our lifespan is directly tied to the number of homes we will own and live in during our lifetime.

Statistics show that most people purchase their starter home in their late 20’s. The next move usually correlates with marriage and children and gears towards schools, community and family living.

The third move takes place when the kids are all grown-up and empty nesters seek a smaller home to suit their golden years.

Andrew Scott indicates in his book that our longer lives are already transforming our society and that people are getting married later and having children later.

According to the author, the increased lifespan in the 20th already “led to the creation of two entirely new stages of life: the teenage years and retirement”.

Which brings me to my question – How will this influence the number of homes we own during our lifetime?

Will longer lifespan potentially create an additional step or two in which we purchase and sell before we settle down with the family or retire?

If we are to stay single later, marry later, have children later and retire later, there is a high probability that we will purchase and sell more homes in our lifetime. However, it is also possible that the initial stage prior to purchasing our first home will be extended and we will settle for moving from one rental to another during that time, pushing out the purchase of our first home to a later age.

These trends can greatly influence the housing market and the economy as a whole.

As for the prospect of living longer – when I shared the longevity prediction with my 14-year-old boy he shrugged and showed no interest. Aging and owning real estate are two subjects he has no interest discussing. Yet.

Will a “property love letter” make sellers fall in love with you?

Representing buyers or sellers in this low inventory market is challenging, to say the least. When representing buyers, there is frustration with the limited options and increased competition for available properties. When representing sellers, the frustration is from the many brokers and buyers who end up on the losing end of a bidding war. 

No broker wants to be the bearer of bad news to those hoping to purchase their dream home.

With this low inventory, ultra-competitive market came what I call “the property love letter”.

On Mother’s Day weekend, I hosted two open houses in a lovely two-bedroom condo in Boston’s South End. More than 130 people attended over two days. By offer deadline, I had six strong offers, each one accompanied by a “property love letter” to the seller. 

Some of the letters were passionate and heartfelt. Others combined an emotional plea while itemizing their financial strength and their ability to provide a smooth transaction. All included smiling photographs.

This got me to thinking.  Do sellers care about a “property love letter”? Do they appreciate the fact that a potential buyer takes the time to share how much they love their home and who they are? Do they even want to know who takes possession of their home after they leave?

The answer is…it depends.

If one offer is far superior to others, the transaction is usually cut and dry. The seller will choose the more lucrative option and move quickly to seal the deal.

But what happens in cases where offers are on par in price and terms? Will a property love letter tip the balance one way or another?

Even the more pragmatic sellers carry some emotional feelings towards the home they have lived in for years. A well-crafted letter in a very competitive bid situation might make the difference and convince a seller to choose one buyer over another.

Until our market returns to some sense of normalcy, buyers should explore all options, including the property love letter, to better their offer. Sometimes, a one-page plea, on good quality paper, can be the difference between securing your dream home and continuing the search.

Is your property ready for winter?

Fall is here and winter is just around the corner. This is a good time to pay attention to your property and make sure it is winter-ready.  Whether you own a single family home or a condo, there are many things to be mindful of before snow and freezing temperatures hit our region.

1.  Heating system – have a licensed plumber/electrician service your furnace or air pump prior to its activation. Such inspection should also measure Carbon Monoxide leakage. If you have baseboard heat, it might be a good idea to check if your system needs to be purged or bled. In this process, trapped air in radiators/baseboards is removed, allowing for much more efficient (and quieter) operation. The contractor should follow the protocol for ACCAs “national standard for residential maintenance” (or the QM, short for “quality maintenance”).

2.  Windows – leaky windows can bring not only physical discomfort (brrr…) but also expensive, and sometimes exorbitant, heating bills. The worst your windows are, the higher the chances you will compensate by reaching to your thermostat. If you are not planning on replacing your windows, make sure to weather strip each of them to minimize heat escaping and cold air penetrating your home. Issues such as condensation can be addressed by a window repair company for a reasonable cost. To learn more about window replacement and energy efficiency, I find Masssave.com a very informative site.

3.  Water heater – water heaters work extra hard during the winter when the need for hot water is greater. The last thing you need is a water heater leak and the need for a replacement during the winter months. Finding a plumber and an electrician will be much harder and priced accordingly. If your water heater is reaching its life expectancy, be pro-active and initiate replacement. New tankless water heaters offer much more energy efficiency while taking very little space. If you live in a condo, such replacement can free room for additional storage.

4.  Roof – a healthy roof should be a concern for you even if your primary home is a condo and your unit placement is not the Penthouse. Most water issues begin at the top but neglect can allow water and melting snow to travel down and cause much damage. If you own a single family home, contact a roofer to inspect your roof and gutters before winter begins. Make sure to check your chimneys for cracks in masonry. Every homeowner association should have a plan in place to inspect roof, gutters, chimneys and masonry before mother nature bares her winter teeth.

5.  Exterminator – it doesn’t make a difference if you live in nature surrounded by woods and vegetation or in the city surrounded by restaurants and cafes. When temperatures go down, rodents are looking for a warm place inside. Make sure to hire an exterminator for a pre-winter visit and be vigilant about sealing all possible entry points. In city dwellings, exterminators can use a variety of tools, inside and outside  your condo, to decrease the possibility of pest intruders. Make sure to emphasize if pets and children reside in the building prior to an exterminator visit.

6.  Ventilation – the coming of winter is a good time to inspect all vents in a house or building. Make sure kitchen, laundry and heating system vents are cleaned carefully.

7.  Ceiling fans – ceiling fans are not only useful on hot summer days. Check your fan to see if it has a reverse switch. Use it to run the fan’s blades in a clockwise direction once the heat is on. The fan will produce an updraft and push heated air down into the room from the ceiling (hot air rises). This flick of a switch is especially beneficial in rooms with very high ceilings and should allow you to dial down the thermostat and reduce your heating bills.

8.  Keep water away from the house – Make sure to inspect your home or building downspouts so that water runs at least 3 to 4 feet away from the foundation. Downspout extensions are very inexpensive and can prevent serious water-related issues.

9.  Exterior faucets – undrained water in pipes can freeze, causing the pipes to burst as the ice expands. Have a plumber disconnect all garden hoses and drain the water that might still be in pipes. Make sure to turn off the shut-off valve.  This item often goes unnoticed by many city dwellers with deck faucets. A burst pipe can become an expensive repair when it causes damage to other neighbors as well. Homes that are more than 10 or 15 years old might not have frost-proof faucets.

1o.  Sump pump – many homes and buildings have sump pumps in order to address rising water levels. Check your sump pump (especially if you have a basement or live in a lower level condo) and make sure it works properly. Pour a few gallons of water into the sump pit to see whether the pump turns on. It is highly recommended to check your sump pump every few months, but especially after the summer is over and the rainy season approaches.

It is also very important to check all your exterior drainage spots and make sure they are clean and not clogged. Do this often throughout the winter.

Lastly, make sure you have all winter essentials stocked up in your basement or in a closet in your condo. It is not fun running to Home Depot during a snowstorm only to find they have sold out of snow shovels.

 Prepare now and free your mind for a cozy winter with your family.

Home improvement – did you consult with your real estate broker before renovating your home?

Recently, a seller listed his triplex condo in Boston’s Back Bay neighborhood for sale.  On the surface, it had all that buyers look for – three spacious bedrooms, two and a half bathrooms, great natural light, an outdoor space and even a coveted parking space.  Knowing that the market was strong and inventory was scarce, the seller demanded a high price per square foot and expected much interest and multiple offers.  

The first open house was very busy and his listing broker reported many private viewings.  To his great surprise, the first weekend on the market came went with no offers presented.  As the first week came to a close, it was clear to him that something was not right.

Asking his broker for buyer’s feedback the broker replied:  “Most visitors commented that your renovation was very specific and that they would need to remodel what had already been done in order to enjoy the space, requiring them to spend money above the already high asking price.”

Two price reductions later the seller was finally able to find a willing and able buyer.

You’d be surprised how many homeowners decide to renovate their home without first consulting with their real estate broker.  There are many reasons for that – excitement, forgetfulness, a strong feeling of “knowing what is right”, not seeing their broker as an authority when it comes to renovation and home improvement. In many cases, not asking for a broker’s opinion on renovations can be a big mistake, often causing a place to linger on the market longer than it should and selling for less.

As an experienced broker, I have found one of the most important question to ask yourself before you contemplate any renovation is “How long am I planning to live in this home?”.

The answer to this very basic question can help guide you in evaluating and recommending how far you should go with a renovation.

Once you have answered that question, these are other important questions to consider:

1. How personal should I go with kitchen and bathroom finishes?

2. What about choices in paint colors?

3. Should I remove or introduce new partitions within the house?

4. How important is a tub versus a standing shower?

5. Should I spend money on “invisible” improvements that will make my living more pleasant – insulation, sound-proofing, etc. – but most likely will not be viewed by future buyers as significant?

6. Is it worth it to replace old windows which often involves much more than the window itself and can be very expensive?

7. Should I make changes to my flooring – hardwood, carpeting, other?

These questions might be answered differently depending on each buyer’s situation and the local market.  That’s where an experienced real estate broker can be a valuable asset.

Improvements I consider as “additions” are usually the most lucrative for homeowners.  Adding a room, finishing an attic, adding a full bathroom or powder room, enclosing an existing deck or building a new deck are all in the safe ‘cost versus value ratio’ column.  Such improvements, if done properly, should not only bring you enjoyment but are sure to add equity to your home.

Other improvements such as kitchen and bathroom renovation, new flooring, painting, central air conditioning, sound, and window replacement are a bit more tricky and should be examined carefully before committing to a project.  

My opinion is this – if your horizon is short, make sure to improve your home in a simple and less personal manner.  If your horizon is long, you have more freedom with personal choices though use some judgment in order to accommodate the unforeseen.

Every seller should know that there is a direct link between DOM (days on market) and the final sale price.  The more days on the market the lower the sales price.  Renovations done wisely are sure to influence a quick sale and bring about a better sale price.

Make your real estate broker your first stop once you begin the process.  An experienced professional will be able to guide you while keeping all aspects of your property in mind (neighborhood, specific market, price to sell, personal taste & horizon).  With that initial advice in mind you will be able to better approach your architect, designer and builder.

Moshe

Luxury Building Condos Go No Smoking: Smokers Need Not Apply

Smoking is becoming more and more out of fashion. According to the Centers for Disease Control and Prevention, the number of smokers in the country has dropped from 20.9% of adults in 2005 to 19.3% of adults in 2010.

With high-end homeowners and renters expecting luxury and top of the line accommodations, the odor left behind by smokers tend to deflate the high standard many buildings aim for. Following the trend of the times, luxury building condos are now becoming smoke-free environments.

Many buildings already do not allow smoking in the common areas both in and out of doors, but would not place any smoking restrictions within the owner’s unit. This is changing as buildings become smoke free, meaning no smoking on the premises, including in individual condos. One reason for banning smoking within someone’s property is the effects of second-hand smoke. Even if smoking is restricted to one condo, the vents are common throughout the building and the smoke from one unit will travel through the vent and into other units. This will affect the air quality in everyone’s condo.

Another reason is not every smoker keeps their cigarette butts in an ashtray or trashcan. Some (but not all) smokers have a habit of flicking their finished cigarette outside. Entering a luxury building littered with cigarette butts along the street does not make the impression these buildings (or condo owners) want.

It seems strange to put restrictions on what an owner can or cannot do within the unit they own. However, the condos are part of a community and share ventilation systems, common areas, and amenities. With the majority of the population being smoke free, more luxury building condos will continue to become smoke free. This will be positive when considering the value when it comes time to sell the property and also if you are considering buying a condo in a luxury building as an investment property. Smoking does cause damage to a property and will turn off potential tenants.

Although people will try to get around the rules and continue to smoke in condos in many creative ways, such as Lucille Bluth in Arrested Development, it will ultimately not work.