Thanks to Kerri Provost from the Real Hartford blog for providing this inspiring story.

Have you thought about which town you might want to move to – where to put down roots? Greater Hartford is made up of lots of small towns that each have their own character, strengths and weaknesses. The challenge is that what may be a strength to one buyer is a weakness to another.

If you have a job lined up, then I’m sure that your future coworkers have been generous about sharing their views on where you should live. People are very opinionated on that subject. You’ll quickly realize that they’re advocating for the town/area that they live in. And that they’re also warning you about towns/areas that they know very little about other than what “people say.” Unless they know you pretty well, it’s probably best to do your own research – how do they know what you will like?

How do you research different towns? I’m glad you asked. We help people relocation to Greater Hartford regularly and have some suggestions.

The best way to check out a town is to come visit.

Drive around the business district(s) and neighborhoods to get a sense of what they are like. Walk the streets at different times of the day to see how you feel. It’s interesting to see how people respond to the different towns when we take them on a tour. Most have a mental image of what kind of town they want to live in – they don’t know how to articulate it well but they know it when they see it.

Another important step is to investigate the expenses and amenities of each town.

On the expense side, how do the property taxes compare to other towns? Almost all the towns in the area can be compared on an apples to apples basis using mill rates. The City of Hartford cannot because it uses a dramatically different tax system than everyone else. The Town of West Hartford, at the time of this writing (Jan 2012), is also tricky because of a frozen phase-in that will hopefully be resolved by Jul 2012.

Connecticut has motor vehicle taxes at the town level. So you will be taxed on the value of your car in addition to the value of your home.

On the amenities side, you can check out the parks and libraries they have, whether they do curbside trash, recycling, and/or leaf collection, how the schools are organized and perform. You can also research crime statistics for the community.

Finally, you’ll need to figure out if the town has the kind of housing you’re looking for.

To get there, you’ll need to do some thinking on your own.
- What kind of environment you like – urban, suburban, rural?
- Do you want a single-family home, or would you consider a condo or multi-family?
- Are you interested in historic, or more architecturally ornate homes?
- Would you prefer a newer, more energy efficient home?
- What are you hoping to have for a commute?
- Are there other criteria that are very important to you?

Greater Hartford has just about everything out there. Knowing what you would ideally like to find will help narrow the options quickly since each individual town has different housing types.

The quick way to sort through the different towns is to work with a real estate agent, like us. We’re happy to take some time to tour the different towns with you – show you the highlights and provide some commentary. We can also tell you which towns to look in for your preferred type of home.

Congratulations on moving to Greater Hartford … just let us know if we can help!

I hear this often. My job puts me in the position where people are sharing personal information with me. A lot. They’re asking for advice based on difficult decisions that they may be making. I hear about very happy and sad situations all of the time. A marriage. A new child. A better job. An impending divorce. Family sickness. Death of a loved one. Financial distress.

These are all reasons why people move. Depending on a particular situation, different advice needs to be given. This all requires listening. And empathy. Hence why folks often vocalize that they feel like they’re talking to a therapist when I have conversations with them.

I don’t really mind this. I left my job in corporate America because I felt that I wasn’t making a difference. In my role now I help people solve problems that they’re having. Sometimes their situations are happy, sometimes not. But I’m assisting them with moving on in most cases. I appreciate that my clients trust me enough to let me into their worlds. And I respect them by keeping our conversations confidential.

I guess the point is that you want to have an agent you feel you can trust with personal information, because there’s a good chance something sensitive will be shared along the way. And better yet, you want an agent who is trustworthy and actually cares about your situation.

The basic thesis is that a confluence of trends will lead to more large houses for sale in the suburbs than buyers who will be interested in purchasing them. Supply will come from the Baby Boomer generation downsizing to smaller, lower-maintenance housing options.

However, demand for their properties may not materialize. Household size is increasing as multiple generations of a family are more frequently living together. Financially marginal buyers struggle to get a mortgage in the current environment, preventing them from being homeowners. Factors like smaller home sizes, walkable neighborhoods, mixed-use environments, and shorter commutes are creeping up to the top of buyer wish lists.

Many interesting questions could be asked using this thesis as the set-up. The first one that jumps to my mind is this, which areas of Greater Hartford will benefit most from these trends?

Some of the winners are obvious. West Hartford Center offers exactly the mix of features that Mr. Condon describes. It is an established mixed-use community with smaller homes, in a walkable setting, that is convenient to just about everything in the region. Slam dunk. The Center is currently one of the hottest real estate markets in the area with basically no inventory available. If you want to buy there, then you need to have your act together.

Other areas seem like logical winners, but there is still considerable work to be done. I see Downtown Hartford as a long-term winner. Right now there is a core group of residents excited about Downtown as a neighborhood. Seven recent apartment developments (The Hollander, The Metropolitan, The Lofts at Temple & Main, 915 Main, Bushnell on the Park, 55 on the Park, and Hartford 21) are generally considered successes. Active planning is underway to rehab another building, the former hotel on Constitution Plaza. There are many additional opportunities to add residents in smaller, apartment-style, homes that are in a mixed-use community with major established businesses and legitimate public transit.

Really, the whole Farmington Avenue corridor from Downtown Hartford through West Hartford Center seems like it has a chance to win big in the coming decades. Asylum Hill and the West End have a lot to offer on the Hartford side of the line. Residential density continues on the West Hartford side of Prospect Avenue with numerous apartment buildings and commercial areas transitioning to single-family housing just off the main road.

In the real estate market, we are already seeing buyers from the Farmington Valley come over the mountain to look at our listings in the Elizabeth Park neighborhood of West Hartford and in Hartford’s West End. If Mr. Condon is right, then this could be the beginning of a trend that will play out for years to come.

In our auto-centric culture, it’s very easy to zoom right past the West End without even realizing it’s there. And it’s also very easy to gather opinions about the City of Hartford, in which the neighborhood is located. The constant conversation about Hartford in the media, and in the workplace, makes people feel confidant that they understand the City … that they get it.

But do they really “get it?” I find that perceptions about Hartford’s West End neighborhood are often quite different from the reality. My solution – pictures! Lots and lots of pictures. If people don’t have time to visit the West End, then let’s bring the West End to them.

The page that follows is a photo mosaic of pictures all taken in the West End. It’s just my initial version, and will continue to evolve as I take more and more pictures of the neighborhood and what goes on in it. As a real estate website, there’s an obvious focus on houses, including the ones for sale. I think this is appropriate since the West End has some of the most architecturally interesting homes in the region, most built between 1890 and 1930. Hopefully the pictures also show that it’s a true mixed-use community with terrific restaurants and a world-renowned park all within walking distance.

Please consider passing this link along to family, friends, co-workers, and anyone else you think might appreciate this sort of community. Who knows, maybe they’ll be inspired to visit, and decide the West End would be a nice place to call home. Thanks!

PS – Feedback is also encouraged!

We sat down in front of the warm fire last night and came up with four ideas for getting ready for the spring. These suggestions are definitely important if you’re considering a home sale, but may also be valuable to those who are looking forward to enjoying their home for years to come.

Start Decluttering

Advice to declutter a home before putting it on the market is so pervasive that it’s become cliché. At the same time, buyers consistently respond better to homes that are sparsely decorated than to those that are densely decorated. They need to see just enough furniture to show them how to use a space, and just enough decorations to make it feel complete. So take a few minutes to pare back, especially in the first few rooms buyers will see.

A home sale is an excellent excuse to declutter, but just about everyone can thin out their collections and displays. Homeowners seem to have a natural tendency to collect things over time, and are often hesitant to part with their possessions. From our own experience, cleaning out our home office to the bare essentials has made it feel much larger, and more inviting.

Take an extra moment to consider the next location for your stuff as you go through things. Most people pack it all into a box destined for either the attic or basement, but that’s just a stopgap. Eventually you’ll have to go through it all again as you clean out your storage areas. We’re not suggesting you part with family heirlooms and items of personal significance, but not everything needs to be saved. Common alternatives to storage are setting items aside for a tag sale, donating them to a charitable organization, or just throwing them away. Freecycle and CraigsList are also great resources.

Take on that Smaller Inside Project

Since it’s cold outside, winter is a great time to take on an inside project. Think about your home from a buyer’s perspective … is there anything that stands out as needing an update? This is another opportunity to improve a buyer’s perception of your property without too much of an expense.

Focus on first impressions and on highly personalized design choices when making a list of potential projects. Wallpaper and paint are the easiest to do, and can usually be done in a weekend. More ambitious homeowners might consider projects in bathrooms, the kitchen, or even the basement.

Each January we find ourselves energized by all the possibilities and good intentions associated with the beginning of a new year. Painting and redecorating a room is a great outlet for some of that energy since it allows us to feel productive and improve the look of our home.

Lay Groundwork for Major Projects

At this point in the real estate market it’s difficult to recommend that owners undertake major renovations before putting their home up for sale. Move-in ready homes are definitely in higher demand than those that need a little work, but the headache and cost involved in a major project is often not recovered in the sales price.

That being said, we can certainly imagine situations in which a targeted professional renovation would more than pay for itself and help a home sell more quickly. One example would be updating an original bath in a home that is otherwise move-in ready.

Contractors are less busy during the winter. They are more likely to have time to come out and give a quote for your job. The earlier you sign someone up for a project, the sooner you can get on their schedule. And they may even be willing to cut you a bit of break on the price if you help them keep their crew working through the winter.

In their most recent survey of home improvements, Remodel magazine found that most projects in the metro Hartford area return far less than their cost, typically between 50% and 80%. One of the most cost effective improvements that had a budget of at least $20,000 was what they call a “Midrange Minor Kitchen Repair,” with a 79% cost recovery. Basically this is a refresh of an existing kitchen with new appliances, cabinet doors, countertops, and sink.

Another category of improvements that homeowners begin to notice at this time of year is energy efficiency. New windows, insulation, and furnaces are valuable additions to any home even though they are not as flashy as a new kitchen or a perfectly decorated space. We highlight energy saving features when showing properties, and have noticed more buyers asking about them recently.

Talk to a Mortgage Professional

Finally, if you are considering a sale in the spring, then this may be the ideal time to reach out to a mortgage professional — especially if you are planning to also buy a home in the area. The first issue you should talk through is your credit score and ability to qualify for a loan. If you’re in poor financial shape you want to know that as soon as possible so that you can begin to fix any credit problems.

Another important topic is whether you need to sell your current home before you can qualify for a mortgage for a property at the price point you’re targeting. (And while we’re here, are you targeting the correct price point for your income and assets?) Coordinating a sale with a purchase is obviously more complicated than treating the two transactions separately, but people do it all the time. You just have to make sure you understand the various steps at the beginning and keep the larger picture in mind.

Stay warm this winter! And remember that we’re happy to help with any questions you may have.

But real estate isn’t always as glamorous as it may seem. We not only have to find our clients, but we also have to demonstrate the expertise and provide the level of service that we advertise. Most agents work on their own. They have to follow the activity in the markets, keep track of numerous dates for each transaction, and make sure all their paperwork is in order. At the same time, they have to be available to show houses to buyers and market their listings. There’s a lot of grunt work involved to make the overall experience seem effortless.

We feel we have an advantage in working together, and think we’ve done a pretty good job building the operations of our business. However, it can always be better. This summer, Kyle and I are going to make a fresh start. We’re going to keep everything that is working well, and we’re going to improve everything else. Most of the changes will be behind-the-scenes, and not visible to our clients.

For example, one task is to make our home office workspace more efficient. Right now we’re a little cluttered with files and marketing materials that have built up over the years. Do we need folders for deals that closed three years ago next to our desk? No, they can move to the basement. Do we need 37 copies of a glossy marketing sheet from a sold listing? No, those can be recycled. What about all of these blank contracts and forms? Let’s go electronic and get rid of them all. We can get our workspace set up so that we have exactly what we need, and only what we need, close at hand. I know, yet another example of us being dorks. But the faster we can get our paperwork done, the more time we can spend with clients.

Another task is to take a close look at the expense side of the equation. Are we getting the support services we need for the best possible price? This leads to a change that will be visible to clients. As of today, July 1, we’ve switched to a different broker, RE/MAX Premier, REALTORS based in West Hartford Center. Because we think of ourselves as entrepreneurs, we end up doing a lot of things differently than other agents. We don’t rely on our broker in the same way that many agents do. RE/MAX is more supportive of the specific ways we run our business and a better fit for us.

Contrary to common perception, brokers work for agents, not the other way around. They provide office space in which we can work and hold meetings. They provide legal and business support so that we don’t have to launch and run our own company. They provide educational opportunities. They sometimes generate leads based on their brand. Some brokers offer more services than others. In all cases, the agents pay for these services.

By moving to a different broker, we’re getting only what we need and not paying for extras that we don’t use. We’ll still be providing the same level of service that we have since we started in the business. The change really doesn’t impact our buyer clients at all. And the only difference our seller clients will see is a different color sign in their front yard – our marketing program for listings does not change at all. It may seem like a big deal, but it’s really not.

The final phase of the Fresh Start is looking for new opportunities. As we go through the summer, we’re going to be searching for ways to work smarter and better. Are there new technologies or techniques to advertise our listings so that our seller clients get more offers and better offers? Are there different ways to communicate with our buyer clients so that they have a better understanding, and more confidence, in the search process? What can we do to improve this blog so that the general public understands more about the local residential real estate markets?

We’re going to wipe the slate clean and take a fresh look at how best to be a residential real estate agent in Greater Hartford. Every now and then it feels good to press the reset button.

Barry Ritholz is one economist we follow regularly, through his posts on The Big Picture blog. Right now, he has a strong negative view on the future of the US housing markets. One of yesterday’s posts broke down his views in more detail.

Looking back at how we got to where we are today, Mr. Ritholz notes that that low interest rates throughout the 2000s caused a credit bubble, which in turn caused a housing boom. Lots of people bought houses they couldn’t afford because poor lending standards and very low mortgage rates allowed them to jump into the real estate markets. Five million homeowners have been foreclosed upon, and he expects five million more foreclosures to come.

His forward-looking thesis is that even after a 33% fall from the peak, prices are still too high when looking at traditional valuation metrics like prices vs income and the cost of owning vs renting. Supply is high, with more waiting in the wings. Demand is well below the inflated peak levels, caused by tighter credit and high unemployment. And when markets correct from severe imbalances, they usually move well below the mean.

How does his thesis translate to Greater Hartford?

Our markets did not appreciate nearly as much as markets in some other parts of the country, which has also meant that we have not seen as severe a correction. However, housing in the northeast is generally more expensive than it is/was in the boom areas, so there is more room to fall. And there is no guarantee it will always be more expensive up here.

Inventory: Real estate inventories in Hartford County checked in at just over 6 months of sales activity at the end of the first quarter. That’s right on the boundary between a neutral market and one that favors buyers, so we’re not seeing any major warning signs here. The number at the end of the second quarter should be comparable, or even better, since the tax credit created a huge spike in deals that will close by the end of June.

Foreclosures: The number of foreclosures has increased dramatically in the past few years. A recent Hartford Courant article focusing on the amount of money marshals earn indicates that “five or six years ago there were 3,000 or 4,000 foreclosures” per year in the state. Compare that to a statistic later in the article stating that 20,000 foreclosures were filed in 2009, which was 40% more than 2008.

Employment: The employment situation in Greater Hartford has improved over the past year. People we talk with say that companies are adding employees, though many positions remain unfilled and may never be filled. We are also seeing more relocation buyers coming from out of town, which of course means that they have jobs waiting for them. That’s the short-term view. The long-term view is more negative. One of our major employers has gone on the record saying that they want to move jobs anywhere outside of Connecticut. The comment made headlines, but nobody seemed especially surprised by the news. The housing market depends on buyers with steady income, which depends on employment.

Credit and Mortgage Rates: Buyers with good credit are able to get mortgages, and are currently seeing very low rates. However, buyers with poor credit are having trouble financing a purchase and often have to sit out of the market for a year or two to repair their credit. We know of numerous buyers in this situation – all of whom are gainfully employed.

Overall, the environment in Greater Hartford is trending in the same direction as the national picture for three out of four areas that Mr. Ritholz identifies as concerns. It’s difficult to know how severe our readings are relative to the national average, but it seems like we may be at risk for falling prices if his analysis turns out to be correct.

Agents get their business from anywhere and everywhere. There are thousands of deals each year in Greater Hartford, each with a buyer and seller. Which is important since there are hundreds, perhaps even thousands, of agents in the area. We estimate that there are over 400 real estate agents based out of West Hartford offices alone.

For the majority of listing opportunities, the sellers reach out to the agent(s) they want to work with. In some cases, the client will call a local real estate office to find help. The client controls the most important piece of information – that they are planning to sell their home – and has reasonable control over how many agents are considered.

In this case, news of an individual leaving the area made the paper, which means that lots and lots of agents know about the opportunity. Some may even call Mr. Wilson to pitch their services. Hopefully, for his sake, he knows this may happen and is comfortable turning people away.

If you’re planning to move, our recommendation is to put some time and thought into who you pick as your agent. Something along these lines:

1. Gather a list of agents that friends, family, and co-workers have had good experiences with.

2. Research the agents on your own. Who are they? Where do they work? How much business do they do? Do they seem knowledgeable?

3. Offer 2 – 3 agents the chance to interview for the opportunity to list your home. This will allow you to get multiple pricing opinions and see a range of personalities and business styles.

4. Choose the one that you feel most comfortable working with, and who can articulate a concrete plan for marketing your home.

Real estate is an individual sport – you are hiring a specific agent to work for you. They may pitch the support services of their broker in their presentation, but at the end of the day the service you get is whatever they commit to provide. There are large differences between agents, both between companies and within a single broker office. It’s worth your time to talk to a few of us. And of course we would love to be included on that list.

It’s very important that home buyers understand this fact during their home search. Where are the towns or neighborhoods they’re interested in compared to their jobs? Are they comfortable making the drive every day? Everyone has different views on how long a drive is acceptable, so we simply recommend that they drive their future route once or twice to get a feel for the distances and times.

Some drives are just difficult to do. My introduction to the Greater Hartford road system came during a summer I spent at UConn Storrs during college. One of my frequent destinations that summer was Amherst, where Amy was spending the summer. Amazingly, the fastest way from Storrs to Amherst is to stay on the highways and drive through Hartford. The route is almost 50% longer, 73 miles vs 50, but the speed limit is quite a bit higher. I usually took the more direct route through the back roads since I hated the uncertainty of traffic more than the guaranteed extra 5 minutes that came from passing through a half dozen town centers.

The hub-and-spokes transportation model works best for those who are traveling one direct route, either to or from Hartford. In addition to driving, those who travel to the city also have the option of the CT Transit Express Bus system. Commuters who start in the city and travel out usually have the best commute. They miss most of the Hartford congestion and get a straight shot to their destination. Hartford residents don’t get the option of the Express Buses, though they can take jobs anywhere in the region without worrying too much about how it will impact their commute.

Whether home buyers are new to the area or lifelong Nutmeggers, it’s important that they think about their commute. And the first step in the process is understanding that all roads lead to Hartford.