The Allstate Blog » Lindsay Listanski, Coldwell Banker

Am I Ready to Buy a Vacation Home? 3 Questions to Ask

Lindsay Listanski, Coldwell Banker — Mon, 17 Jun 2013 11:00:05 +0000

You may be dreaming of buying a vacation home to escape from the daily grind, where the only thing to do is enjoy quality time with friends and family. Of course, buying a vacation home can be a significant investment, and you may be on the fence about buying a home strictly for summer or winter seasons. However, taking several financial and personal factors into consideration may help you decide. Here are three questions to ask to better determine whether buying a vacation home is right for you.

1) Would the home get a lot of use?

If you don't plan to rent out the vacation home, you should consider how often you might actually use the property before deciding to buy it. For example, if you're like many Americans with a busy work schedule, family obligations and other circumstances, you may find that you can only get away two weeks out of the year. In this case, you may decide that owning a second home that's not used as an investment property may not be in your best financial interest. On the other hand, if you already spend weeks at a time at your favorite vacation spot, you may find that owning a property there will give you more freedom and flexibility when it comes to planning family trips. Other factors that come into play are distance and convenience. For example, you should determine if you are willing to drive or fly a long distance for seasonal upkeep and home maintenance. Will you be able to get to your home quickly, or can you hire out a professional to deal with emergencies? Determining how to manage a property that is a great distance away can ease your stress.

2) Is it affordable?

Interest rates and down payment requirements for a second home differ based on how you plan to use the property, according to Kiplinger.com. If you plan to use a second property as a residence, financing rates and requirements will likely be similar to those of your first home. However, if you plan to use your second home as a rental property, you will likely take on a higher interest rate and may be required to make a larger down payment, sometimes ranging between 20 and 25 percent. That's because mortgage insurance typically isn't available on an investment property, and lenders mitigate their risk on a loan by requiring more from the borrower up front. For these reasons, it's important to consider the financial implications.

3) Would I consider sharing the home?

In some cases, it may be wise to consider fractional ownership. Unlike timeshares, fractional ownership properties have a smaller number of buyers, which, in theory, offers increased access to the property. And, by sharing ownership, the financial and maintenance responsibilities may become less of a burden as you share the risks of home-ownership with others. Of course, that also means you'll be sharing access, so fractional ownership only makes sense if you want occasional access to a property, not a summer-long retreat. Either way, property contracts should be carefully considered. Another important factor to consider is how you will actually conduct your search. Working with a local real estate agent can be crucial during the search for a vacation home. An experienced agent will be more familiar with local laws, customs, and building codes, and can walk you through the home buying process, provide insight into the community and help negotiate a purchase price that's in line with local property values. Guest blogger Lindsay Listanski is the social media manager for Coldwell Banker Real Estate , a leader in full service real estate sales. Recommended by the editors:

How to Do a Final Walkthrough Before Closing on a House

Lindsay Listanski, Coldwell Banker — Tue, 30 Apr 2013 11:16:49 +0000

When the home buying process is nearly complete, many buyers start relaxing and focusing on other details, such as purchasing new furniture and looking at paint samples.

But there is one more crucial step to take before closing on the house: a final walkthrough. This is the last chance before closing to make sure everything is in working condition. A final walkthrough can not only help you feel more confident about your purchase and avoid buyer's remorse, it can also pinpoint any last-minute problems that should be taken care of before settlement.

When to Schedule a Walkthrough

A house walkthrough should take roughly 30 minutes to complete, enough time for you to be extremely thorough. During this assessment, you should check for new issues that may have come up since the last time you viewed the home.

This is especially important if a major event, like a severe storm, occurred during that time period. Once you close on the home, previous owners are not obligated to fix new damages that may have occurred.

Be sure to schedule a timely walkthrough, about 24 hours before closing on a home, to address any potential problems.

What to Look For

At this time, you should check all major appliances to ensure they are in working condition. For example, consider turning on the dishwasher and washing machine, checking outlets and light switches and testing other basic operations. You might also request warranties and owners' manuals for appliances.

Look to see whether any fixtures the seller agreed to leave behind (a chandelier, for instance) are missing. Check to make sure any previously agreed-upon repairs have been made. Then, look over the general condition of the property, inside and out: Are there damages like scratched walls or floors that occurred when the homeowner moved out? Did they leave unwanted furniture or other things behind? Is the yard and overall property in good shape (or, rather, the condition it was when you last saw the home)?

Many industry professionals recommend that buyers bring a home inspector with them to seek out any problems, and to confirm that repairs were made as requested and to their satisfaction. For this kind of service, home inspectors will typically charge much less than their original inspection costs.

Take Action Quickly

If you do identify problems, you have a few options. First, you may choose to walk away from the deal altogether. However, most professionals encourage buyers to consider how significant the problem is before walking away. Is avoiding a $500 fix worth losing your dream home?

In other cases, you may choose to postpone the closing until the sellers fix the problem. If sellers balk at having the problem fixed, and the repair was agreed upon during negotiations, you do have legal recourse -- although it may be a good idea for the buyers and sellers to try to reach an amicable agreement to make the closing go more smoothly.

Take your time during a final walkthrough to ensure there are no surprises after the closing. Once this important last step is complete, take a deep breath, relax and smile: You are about to be the proud owner of a new home!

Guest blogger Lindsay Listanski is the social media manager for Coldwell Banker Real Estate , a leader in full service real estate sales.

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How to Approach Home Sellers About Repairs

Lindsay Listanski, Coldwell Banker — Thu, 14 Mar 2013 11:20:23 +0000

When looking for a new home, it's important to see beyond paint colors and decor that may not be your taste and, instead, focus on the floor plan, structural design and other physical elements of the house. Replacing carpets or changing light fixtures are typically simple and affordable changes you can make once you move in. But if certain areas of the residence require repairs, like the foundation or the roof, purchasing a property could become costly. Don’t let the fear of having to pay for repairs deter you from buying a house, though. In some cases, home sellers may be willing to pay for repairs if it will help them close the deal and sell their property. Here's how to make the ask:

Reasonable Requests

There are certain types of fixes that are generally OK for home buyers to request sellers make before they agree to purchase the home. Getting a home inspection is a must. Once this is complete and specific parts of the home have been identified by an inspector as needing essential upgrades (electrical wiring, for instance), you can approach the sellers to see if they would be willing to pay for the repairs. Conversely, it is not acceptable for home buyers to make non-essential requests for fixes in a home for sale. This might include painting the house simply because you prefer a different color, or making other aesthetic alterations.

Timely Requests

In addition to making appropriate repair requests, it is also important for home buyers to petition fixes in a timely fashion. Making requests days before closing may halt a home sale altogether, as the sellers may not be willing to alter their agreement at the last second. This means you will want to ask the sellers to upgrade certain parts of their home early on in the negotiating process. In certain circumstances, home sellers may be willing to pay for home repairs after the sale is complete. To ensure the sellers follow through on their intent to do so, you might want to hire a lawyer to draw up a contract stating the seller’s intention to make the fixes within a predetermined period.

Decide What You Can Live With

There is a chance that a home seller may be unwilling to pay for repairs. According to Inman News columnist Barry Stone, you should determine how willing you would be accept the home as-is, without repairs paid for by the sellers. If the majority of the home is in quality shape (make sure the defects won't impact your ability to get insurance on the property) and you like most features, you just might want to worry about making fixes after the sale goes through. The key to approaching home sellers about repairs? Communication. For more home buyer tips, check out the coldwellbanker.com learn section. Guest blogger Lindsay Listanski is the social media manager for Coldwell Banker Real Estate , a leader in full service real estate sales. Recommended by the editors:

How Home Buying and Selling has Changed in the Recession

Lindsay Listanski, Coldwell Banker — Tue, 31 Jul 2012 10:00:27 +0000

The phrases “cutting back,” “downgrading” and “settling” seem to be all too common at home, work and across the media today. While scaling back on shopping and staying in for dinner several nights a week have become the norm for many, Coldwell Banker Real Estate wondered if the same held true for homebuyers and their home buying “must haves.” In the past, conventional must-haves often included a spacious kitchen, beautiful backyard for entertaining and, for many, an open floor plan. But with the turn of the economy, people have been reevaluating what the true value of a home is.

The idea of home has shifted

There has been a definite shift in the emotional value homeowners and buyers are placing on their homes. This shift is critical as we return to the idea of home serving as an investment in our lifestyles, where the emotional and psychological benefits are of at least equal value to the pure economic investment. This change was clearly demonstrated in a recent survey of more than 600 Coldwell Banker Real Estate professionals in the United States that revealed home buyers and sellers are adjusting expectations and “getting real” about real estate in 2012.

Sellers working harder to entice buyers

More than half (51 percent) reported sellers are more willing to price their homes more competitively than this time last year, and 45 percent said sellers are more willing to change the appearance of their homes to entice buyers than they were one year ago. Of those Coldwell Banker professionals surveyed:

94 percent say their sellers are getting rid of clutter and making cosmetic updates, such as fresh paint and minor repairs.
78 percent agree clients are willing to de-personalize the home.
59 percent say sellers are even bringing in new home decorations or furniture to help make the home more appealing.

“De-personalizing and making it easy for a buyer to imagine him or herself living in the property is crucial, especially when there are many homes on the market,” says Jessica Edwards, Coldwell Banker Real Estate Consumer Specialist. “Within the past year, sellers were more willing to price their homes competitively and took my advice to make their home inviting and appealing to a broad cross-section of potential buyers.”

Home buying preferences go back to basics

Sellers, take note: when it comes to selecting a home, buyers are going back to the basics. They’re putting renewed priority on classic demands: new or updated kitchens and bathrooms, and open floor plans:

33 percent of surveyed agents say a new/updated kitchen is the most important feature to homebuyers.
14 percent say the most important feature to homebuyers is an open floor plan, while 12 percent say it is a new or updated bathroom.
Only 1 percent of the real estate professionals surveyed say they believe that entertainment rooms or finished basements are the most important feature.

Are you considering buying a home? How has the recession altered the features that are important to you? Guest blogger Lindsay Listanski is the social media manager for Coldwell Banker Real Estate, a leader in full service real estate sales.

Understanding the Differences Between Older and Younger Baby Boomer Home Buyers

Lindsay Listanski, Coldwell Banker — Tue, 03 Jul 2012 10:00:19 +0000

Like most people, baby boomers are anxious about how the current economy will impact their later years—and their living arrangements during that time. But while the oldest members of this 79-million-strong generation have just reached the traditional retirement age of 65, the youngest members skew as young as 47. With a nearly 20-year age difference among those making up the ‘bookends’ of the group, and because boomers have been driving trends for decades, Coldwell Banker Real Estate recently enacted a survey of 1,300 agents to gain a unique understanding of the home-buying differences between older and younger boomers. The results revealed a dynamic picture of the real estate market. While 87 percent of the agents and brokers polled agreed that the economy has delayed boomers’ plans to sell their homes, the survey revealed a clear division between the types of homes older boomers want and those that younger boomers desire. Younger boomers (ages 47 to 55) are in their prime earning years, with strong lifestyle implications that impact their housing decisions. They may be moving for a job, perhaps making an investment on a second home, or downsizing as empty nesters. Older boomers (ages 56 to 65), on the other hand, are either moving into or beginning to think about their retirement years, and they’re seemingly focused on smaller homes with simpler lifestyles near their children and/or lifelong passions. Here are some additional findings on the home buying differences between older and younger baby boomers:

Purchasing second homes?

Younger boomers: More than one-third of agents (34 percent) say younger boomers are interested in purchasing a second home. Older boomers: Just 22 percent of agents say older boomers are interested in purchasing a second home.

Shopping for larger homes?

Younger boomers: 31 percent of respondents said that their younger boomer clients are selling their current homes and looking for larger homes. Older boomers: Only six percent of agents reported that older boomers are selling their existing homes for larger ones.

Looking to downsize? (and the reason behind a downsize)

Younger boomers: 52 percent of respondents said younger boomers are more likely to want to downsize, and 49 percent of agents reported the primary reason as the desire for a simpler lifestyle. Older boomers: While 80 percent of agents reported that older boomers are more likely to want to downsize, 28 percent of respondents said saving money is behind older boomers’ desire to downsize.

Searching for a single family home?

Younger boomers: 82 percent of agents reported that younger boomers are much more likely to prefer a single family home. Older boomers: Just 47 percent of agents agree that older boomers are much more likely to prefer a single family home. Agents reported that about half (47 percent) are looking for a townhome or condo; and 27 percent said their older boomer clients prefer an active adult community.

Guest blogger Lindsay Listanski is the social media manager for Coldwell Banker Real Estate, a leader in full service real estate sales.

The Need-to-Know Truth about Home Improvements and Resale Value

Lindsay Listanski, Coldwell Banker — Mon, 28 May 2012 13:06:34 +0000

Let’s face it. Selling a home today is much different than it was five or six years ago. Prices have likely come down and the competition among homes on the market could be intense. It’s common for homeowners to consider renovation projects prior to putting their home on the market. But if the sole purpose of your home improvements are for resale, your money could be better spent. Unless—and this is a big point—the home needs to be updated in order to compete.

Low Impact on Home Resale Value

According to Realsimple.com, a majority of the most common home renovations offer a payback that is lower than the original investment: Kitchen renovation: $43,860 (national average cost) Kitchen payback: $39,920 ($91%) New roof: $11,160 Roof payback: $9,460 (85%) New windows: $9,680 Window payback: $8,680 (90%) Bathroom renovation: $10,500 Bathroom payback: $10,730 (102%) Before embarking on a renovation, you should consider finding a full-service real estate agent. Putting time and effort toward making a home look clean and crisp could be all you need to substantially improve your chances of getting a property off the market sooner.

Professional Advice

For instance, Coldwell Banker agents are typically well schooled in the art of homestaging: the practice of presenting a property in the best possible light to buyers so they can envision themselves living in the home. An agent can also identify which major upgrades might be necessary (or not), recommend cosmetic updates that can help the resale potential of your home, and provide a valuable understanding of what other homes in the competing market look like to suggest affordable ways to modernize your home. Your agent might advise you to update cabinetry hardware or faucets in a bathroom. Rooms that are completely antiquated may take extra work, of course, but often a few fixture upgrades, a new coat of paint and a few other subtle changes will frequently get the job done. Check out this 'How to Stage Your Home for Sale' video: “Buyers have ample options when it comes to homes to consider for purchase,” says Diann Patton, broker/owner of Coldwell Banker in Grass Valley, California. “This means home owners need to be that much more on top of taking care of their home, so that it is in top shape when they decide to put in on the market.” Patton cites a consumer survey from Coldwell Banker that found 87 percent of recent first-time home buyers said a move-in ready home was important to them, which shows just how crucial these issues are.

Interior Fast Fixes

Below, Patton identifies some of the key issues that can seriously affect a home’s value, but can also be taken care of rather easily. Consider interior first impressions of the home:

Paint and walls. If you have faded paint and dirty interior walls, you’ll want to patch any holes and throw on a fresh coat of paint (note that dark or robust paint may turn a buyer off and can make a room feel gloomy or smaller than it actually is). Have your real estate professional or a staging professional give you an opinion on your current color scheme. Sometimes you’re too close to your own home to realize others may find your colors just too much—it’s ok to let go!
Lighting. Update your light fixtures. Beautiful options can be found inexpensively at places like Lowes and Home Depot these days. You’ll notice a world of difference with new, modern and brightly lit fixtures.
Tubs and sinks. Get rid of those unruly stains. If you have chipping, seek the help of a tub refinishing company. They can repair cracks, chips and holes so that you don’t have to replace the entire units. Dirty tile grout? Clean it up! White vinegar is a simple, inexpensive option for cleaning grout.
Clutter. Clean up and clear out clutter. Rent a storage unit while your home is on the market to get all those extras off the property (not stuffed into your basement or garage). You’re going to have to move after all, why not pack it up and move it out now?

Pre-Inspections

Another suggestion Coldwell Banker makes is to have your home pre-inspected. While the traditional home buying process has the inspection occurring just prior to closing, many homeowners are now conducting a home inspection ahead of listing their home to learn what might be wrong, and then have it fixed. These are all powerful statements to make to potential home buyers who might have a lot of options to choose from. Your home essentially becomes “buyer ready” while others might have blemishes that could readily come to light.

Guest blogger Lindsay Listanski is the social media manager for Coldwell Banker Real Estate, a leader in full service real estate sales.

Energy-Efficient Home Improvements That Might Help Sell Your House

Lindsay Listanski, Coldwell Banker — Thu, 19 Apr 2012 13:09:44 +0000

While updated kitchens, open floor spaces and beautiful backyards remain at the top of home buyers’ wish lists, eco-friendly home features are beginning to make an appearance.

We polled Coldwell Banker Real Estate Facebook fans, who are primarily real estate agents, with the question: “Has a buyer ever asked you about any 'green features' a prospective home may have?” 20 percent responded yes. On coldwellbanker.com, there are currently 129 homes with the term “eco friendly” in the listing description. Clearly, green living is something buyers and sellers are talking about, and we expect that it will continue to grow with time. However, to some homeowners, the idea of going green is fraught with concerns about spending more as first thoughts often turn to the installation of expensive items like solar panels. And, in some cases, they are correct; not all green updates make sense.

What buyers will pay for

Before making any improvements, it is important to understand what prospective buyers want and, even more so, what they are willing to spend more on. Buyers value green improvements that make a home healthier, more comfortable and—here’s the kicker—they’re highly interested in upgrades that will save on operating costs. While the average U.S. household spends nearly $1,900 a year on utility bills, water and energy-efficiency are tangible benefits that are easy to measure. In fact, the U.S. Department of Energy says a green home can cut consumers’ bills by 25 percent! Buyers might be more willing to spend on an energy-efficient home because they know that they’ll be saving money on operating costs in the long run.

Where to start

Energystar.gov is a valuable resource for homeowners and sellers looking to make a start. This website suggests ways of making a home more energy efficient with products and appliances that can help to reduce high energy bills, improve comfort and lessen the environmental impact.

Big ticket upgrades, big impact

As much as half of the energy used in your home goes to heating and cooling. An inefficient heating system not only leaves your pockets empty, it leaves your family shaking during the winter months. If a heating system is 25 years or older, it’s time to replace it. And while a high-efficiency furnace with installation could run upwards of $3,000, it’s an update that buyers will appreciate as it isn’t generally a favorite on their “to do” list when they first move in.

Small improvements, still important

There are many other smaller green improvements that, over time, can make a big difference. For instance, installing a programmable thermostat is an inexpensive green improvement that can save up to $150 annually. Another competitive edge a seller can give their home against other homes on the market is upgrading showerheads, toilets and sinks that are 20 years or older. According to Frontdoor.com, federal standards now require that these fixtures use less water. An upgrade to a low-flow toilet can also trim about $90 a year off a water bill.

Energy audit

Prior to putting a home on the market, you might also consider getting your home audited by the HERS Index, a rating system that verifies a building’s energy performance and is recognized by the federal government for tax incentives, mortgage loans and investor certifications. Having a good score on the HERS index can improve the value of your home to green-minded buyers. Of course, there are many other energy-efficient improvements to consider:

Plant trees near windows to provide shade, reduce the need for interior cooling
Replace old light bulbs with ENERGY STAR-qualified bulbs (this can save more than $40 over each bulb’s lifetime)
Seal air leaks around windows and doors to prevent energy losses

If your home is currently on the market, or if you’re getting ready to put it on the market, it is important to do everything you can to give it a competitive edge. Selecting some, or all, of these eco-friendly home improvements can give buyers peace of mind knowing they won’t have to invest time and money in putting together and operating a more efficient, lower impact, more comfortable home.