Archive for the 'Moving' Category
Old Paint in the Basement
Most homes that I show to my buyers have a corner of the basement with cans of old paint. Amy and I probably have more than most in our own home, just in case we need to touch up any one of the rainbow of colors that adorn our walls. We also have a couple of cans containing colors that are no longer in use.
While homeowners may feel comfortable stockpiling reserves, they can become a problem during the sale of a home. Sellers are supposed to clean everything out of the property. Including the old paint. Buyers may ask for certain colors to be left, but sellers should assume that they need to dispose of it all.
Paint is considered a hazardous material, and should not be thrown into the trash. The MDC has a hazardous materials collection program that includes paint and other chemical waste. Check out their complete guide to the program. They list the items that they can accept in addition to those that they cannot.
Oil based paint can be collected by the MDC. Latex paint cannot, which is unfortunate since most household paints are now latex. Their guide suggests cracking the lids on the cans to let the paint dry out. For cans containing a meaningful amount of paint, they suggest using kitty litter to speed the drying process. Once everything is dry, we are allowed to throw the cans (with the lids off) in the regular garbage can.
Collections are held on Saturdays at different sites each week. This Saturday (June 6, 2009) they will be in Windsor from 8:00 to 1:00 at the Poquonock Water Pollution Control Facility. Next week they’ll be in Hartford at Fox Middle School, and the following week they’ll be in Wethersfield at the High School. After those three collections there is a break until August.
I don’t know anyone that enjoys dealing with their old paint. I know that I don’t. But I think it is important to dispose of paint, and other hazardous materials, properly to protect our environment. We’re fortunate to have a collection program in place, even if our opportunities to participate are limited to Saturday mornings. The program is open to residents of most towns in Greater Hartford (see the site for the complete list) and residents of the participating towns can visit any collection site.
Don’t miss your opportunity, especially if you’re considering selling your home.
West Hartford Sales Contracts
Real estate activity in West Hartford feels like it has really picked up over the past few weeks. Agents are buzzing around like busy bees, and houses are going under contract. We’re seeing some homes sell very quickly after they are offered for sale, and we’re seeing multiple buyers compete for properties. There is clearly still broad interest in living in West Hartford.
I was curious to see if the data supported our “feel” for the market, so I decided to try to look at the number of homes that went under contract in the town of West Hartford since the beginning of the year. My initial plan was to plot the number of contracts written on a week-by-week basis and then compare that to last year. Unfortunately, I was foiled by the MLS data source. We are only allowed to see the date on which a property went under contract after the listing agent moves it to “Deposit” status.
Properties flow through five standard categories in the MLS during the sales process. They go from “New” to “Active” to “Show” to “Deposit” to “Closed.” The “New” status helps flag new inventory for agents and lasts for a maximum of 7 days before a property is automatically moved to “Active.” Homes that are considered “for sale” are in either “New” or “Active” status. Once an offer has been accepted, the listing agent sets the status to “Show,” which means that buyer’s agents can still show the home to other potential buyers just in case the current deal falls apart. Since most deals stay together, we don’t typically show properties in “Show” status. There are no formal rules about when a property moves to “Deposit” status, but most agents wait until the mortgage commitment contingency has been satisfied.
Which brings me back to my data problem. Most of the recent contracts have not achieved “Deposit” status, so I’m not allowed to see the date on which it went under contract. All I can see is that of the 176 contracts that have been accepted so far in West Hartford in 2009, that 52 have closed already, 53 have reached Deposit status, and the remaining 71 are in Show status. Circumstantial evidence that there has been a flurry of deals, but nothing concrete.
The research got me thinking about the number of contracts written each month versus the number of closings during that month. Agents do a lot of work in the spring, but the results don’t show up until later when the closings actually happen. And West Hartford in particular seems like a town where people like to close during school summer vacation. Below is the number of contracts written versus the number of closings for each month in 2008.
From January through May, the number of contracts exceeded the number of closings by a considerable margin. In June, the number of closings nearly doubles, setting the stage for more closings than contracts through September. Contracts written has a final hurrah in November, followed by a spike in December closings.
The real estate market is busiest when buyers and sellers are agreeing to contracts. That’s when the action is for the agents too - we have to be able to keep up with all of our buyers and sellers. Once the contract is in place, the focus shifts to the inspection, mortgage and legal team members as buyers work through their purchase contingencies on their way to closing.
The time between a buyer and seller signing a purchase contract and the actual closing can vary considerably. What’s hidden in the chart above is that contracts written earlier in the spring tend to close more slowly than average. And contracts written over the summer tend to close more quickly than average.
Although every situation is different, contracts written during March, April and May take noticeably longer to close than those written in July and August. There’s not really any way to prove motive, but the trend seems to support the hypothesis that closings are intentionally scheduled within the summer school vacation if possible. Deals negotiated in the spring extend the closing, while deals negotiated during the summer accelerate it. Deals negotiated when the summer school vacation is not in play cluster around 40 days to close.
So there we have it - a meander through real estate purchase contracts, MLS statuses and days to close. The data seems to support my mental models about both when the real estate market is most active and that West Hartford buyers and sellers tend to work around the summer school vacation. Hopefully I’ll remember to look into my initial question once the 2009 data is available…
Negotiating Your Relocation Package- Buy Side
Last week I wrote about various benefits you may get in a corporate relocation package when you need to sell a house. Today we’ll cover benefits you may receive if you’re buying a home in your new location.
In all cases, you’ll work with a real estate agent to find your new home. If you know of a specific agent that you’d like to work with, tell your relocation company that agent’s name and their brokerage firm and that you want to work with them specifically. Otherwise you will be assigned to whatever agent is next on the relocation call list at whatever brokerage firm is next on the list.
Your new employer may provide a lump sum amount to cover your (and your family members) airfare to the new location, lodging during your visit, rental car and gas costs, and meal costs. Or they may have you submit an expense report with receipts for your trip costs, which will be reimbursed after your visit.
Once you’ve found a home, closing costs may be covered. This benefit may include all or some of the following; mortgage application fee, appraisal fee, home inspection fee, closing attorney fee, first year of homeowner’s insurance, tax escrows, and adjustments for water, oil, and condo fees (if applicable). These benefits may be good up to 18 months after you move. So if you do decide to rent for the first year in your new location, you typically have another 6 months or so to find a house and close so that you can still take advantage of your closing benefits.
The mortgage application fee, appraisal fee, and home inspection fee are typically provided only on the first home you find. If for some reason the transaction does not go through (most commonly related to an unsatisfactory home inspection or appraisal issue), you are usually expected to pick up these fees for the next house you decide to purchase.
Coverage of your moving expenses for one move may be provided. The relocation company will give you information on the moving company that will be responsible for moving your belongings. Typically, if you decide to rent for the first year and then buy at a later time period, you’ll be responsible for your moving costs when you actually buy because the relocation company will have moved your belongings to your rental.
If you are unable to find the right home immediately, your new employer may provide a temporary housing allowance for a furnished rental. This benefit comes in two forms. Potentially you’d be given a lump sum amount in which you’d choose the hotel where you stay. Or you’d be provided accommodations for a specified number of days at a certain location selected by the relocation company. Three popular temporary housing locations that relocation companies use in the Hartford area are Hartford 21 and 55 on the Park in Downtown Hartford , and the Homewood Suites in Farmington near the UConn Health Center. This benefit is simply to give you more time to find a home to purchase.
Remember, each of these options may or may not be offered to you by your new employer. Your relocation package is something that you may be able to negotiate. If you find there is a benefit that you’d like that isn’t being offered, ask for it. If you don’t ask, you may be leaving money on the table.