Dear Pat,
We've been working on our house for months, but now we're not sure we can sell. We notice the signs are staying up much longer; even our neighbors weren't able to get the asking price on their home. Has the bubble burst?
---Anxious
Dear Anxious,
Relax. There is no bubble; you're simply watching the normal market cycle. In spite of the lowest interest rates in decades, we're experiencing our typical seasonal cooling of the market--which usually has more to do with school years, job transfers and a general reluctance to move in winter than it does with any perceived economic conditions. So we have fewer new sellers, and fewer buyers, in the mix than we saw in the spring and summer. Add the holdover listings from earlier months that didn't sell for a variety of reasons--perhaps overpriced, or poorly maintained, or badly located--and you have the recipe for a slower market.
What does a slower market mean for a buyer? A chance to take more time to choose wisely, for one thing, and a chance to get a thorough inspection before the contract is completed (something which should always be done, in my opinion). The fall is always a good time for the savvy buyer who is willing to climb the snowdrifts on moving day!
And what does a slower market mean for sellers like you, Anxious? Well, of course, when a truly special or unique home in a wonderful location comes along, we often still see multiple offers above the asking price. But most sellers need to plan for longer selling times, and they need to pay extra attention to details in order to make their house stand out from the competition. Here are three important areas I have pointed out previously, but which bear repeating:
---Remove objections before buyers see your house. Tour open houses, visit friend's houses, get a fresh perspective. Then look at your house as if you were seeing it for the first time. Funny how those pet odors and junky, filled-up rooms just felt like home, isn't it? Get to work on repairs and problem spaces by thinking like a choosy buyer.
---Spark the imagination of potential buyers. Rip out your carpeting, sand those lovely wood floors, throw colorful rugs on them, decorate with flowers and interesting objects, paint your walls with dramatic popular colors. Store away the furniture and other stuff which makes your home useful to you but possibly crowded to others.
---Price your home competitively. This above all! In the fall, or at any time when the demand is less than feverish, your house should be in the top three homes on the market. This means that the price and condition together add up to make it one of the best three candidates for any given buyer in its price range.
Thursday, November 7, 2002
Wednesday, October 2, 2002
Do Agents Set Prices?
Dear Pat,
I have a bone to pick with you. You Realtors have made the prices go so high that now many of my friends can't afford to buy in their own neighborhood. This isn't fair, since they have been part of this community for a long time. Why don't you try to help, instead of just leading the parade of yuppies who can still afford to buy?
---Steamed
Dear Steamed,
I've heard variations of your question (or accusation) several times this year, and I'm sure many other Realtors have, as well. This seems like a good time to address your concerns, as we turn the corner on another year of double-digit increases. Let me say that I am also concerned when prices rise so fast that the people renting in a community are unable to purchase a home when they're ready. And let me say that I would slow it if I could. Prices rising too fast, for too long, will ultimately create a harsh world for us all: renters who can't find anything to buy, sellers who can't afford to move up unless they get a record price, and Realtors who can't move their too-expensive listings. In a word, gridlock. We're not there yet, largely because low interest rates still make it possible for so many first-time buyers to get in the game.
So who's responsible for these rising prices? First, let's look at how an agent determines value. Agents use the same methods as an appraiser to arrive at the right selling price for a home. They look at similar homes that have sold recently in an area, then they calculate the value of the individual features and amenities, plus or minus, that differ from the sold comparable. Thus, they recommend a market price to the seller based on precedent. Precedent is pushed up a bit from January through March, when it is assumed that a buyer might pay more than the previous year; after that most pricing falls in line with the prices established during those early months.
Sounds orderly, does it not? No runaway inflation here, just a healthy optimism that things are going to be worth a little more each year. So why is the real market so much goofier than the sane picture I've just painted? One word: demand. For example, let's say I price a home to go on the market in January at a price perhaps 5% higher than it might have sold for in the previous year. And by the end of the first day I might be surprised to receive in my office some three offers, the highest being 10% over the asking price-that's a 15% increase over the previous year. Am I responsible for that, or is it the product of rabid demand stemming from great interest rates and a small supply of available homes in January?
And so it goes: agents might price similar homes the rest of the year based on that sale; sellers expect at least that price for their home (which of course is much nicer!). For-sale-by-owners with nothing but their own high opinion of their property as a measure of value, out-of-the-area agents who haven't done their homework properly, a few agents who "buy" a listing, sellers who are caught up in a gold-rush mentality-all these can have some influence on the market, but buyer demand is the real price-setter. You'll be cheered to know, Steamed, we've seen the market make its normal seasonal transition the past few months, and a slowing of demand has created a bigger inventory and eased the prices a bit. Tell your friends, it's a great time to buy!
I have a bone to pick with you. You Realtors have made the prices go so high that now many of my friends can't afford to buy in their own neighborhood. This isn't fair, since they have been part of this community for a long time. Why don't you try to help, instead of just leading the parade of yuppies who can still afford to buy?
---Steamed
Dear Steamed,
I've heard variations of your question (or accusation) several times this year, and I'm sure many other Realtors have, as well. This seems like a good time to address your concerns, as we turn the corner on another year of double-digit increases. Let me say that I am also concerned when prices rise so fast that the people renting in a community are unable to purchase a home when they're ready. And let me say that I would slow it if I could. Prices rising too fast, for too long, will ultimately create a harsh world for us all: renters who can't find anything to buy, sellers who can't afford to move up unless they get a record price, and Realtors who can't move their too-expensive listings. In a word, gridlock. We're not there yet, largely because low interest rates still make it possible for so many first-time buyers to get in the game.
So who's responsible for these rising prices? First, let's look at how an agent determines value. Agents use the same methods as an appraiser to arrive at the right selling price for a home. They look at similar homes that have sold recently in an area, then they calculate the value of the individual features and amenities, plus or minus, that differ from the sold comparable. Thus, they recommend a market price to the seller based on precedent. Precedent is pushed up a bit from January through March, when it is assumed that a buyer might pay more than the previous year; after that most pricing falls in line with the prices established during those early months.
Sounds orderly, does it not? No runaway inflation here, just a healthy optimism that things are going to be worth a little more each year. So why is the real market so much goofier than the sane picture I've just painted? One word: demand. For example, let's say I price a home to go on the market in January at a price perhaps 5% higher than it might have sold for in the previous year. And by the end of the first day I might be surprised to receive in my office some three offers, the highest being 10% over the asking price-that's a 15% increase over the previous year. Am I responsible for that, or is it the product of rabid demand stemming from great interest rates and a small supply of available homes in January?
And so it goes: agents might price similar homes the rest of the year based on that sale; sellers expect at least that price for their home (which of course is much nicer!). For-sale-by-owners with nothing but their own high opinion of their property as a measure of value, out-of-the-area agents who haven't done their homework properly, a few agents who "buy" a listing, sellers who are caught up in a gold-rush mentality-all these can have some influence on the market, but buyer demand is the real price-setter. You'll be cheered to know, Steamed, we've seen the market make its normal seasonal transition the past few months, and a slowing of demand has created a bigger inventory and eased the prices a bit. Tell your friends, it's a great time to buy!
Sunday, September 8, 2002
New Public Enemy #1: Mold
Dear Pat,
We'll be going on the market soon, so we want to get our basement in selling shape. We took your advice, and got our furnace cleaned and tested. We cleared everything away from the walls, and the dehumidifier is running full blast. But the basement still smells musty, and the corners show mildew stains. It's discouraging. How far should we go with this?
---Dampened spirits
Dear Damp,
First let's look at our Rogue's Gallery of home menaces over the past thirty years: formaldehyde, lead, radon, asbestos-each has taken its turn as the condition most likely to destroy health and real estate value. Yet none of these will give a buyer pause today (what ever happened to radon tests?), largely because common sense lifestyle practices can usually avoid the dangers posed, and when necessary, abatement or containment is fairly straightforward. One particularly insidious menace, mold, has largely managed to escape official scrutiny up to now, even though it probably accounts for more actual health problems than all the others combined.
But it's a new day, and high time, in my opinion, for mold to land atop this public enemies list. The new state-mandated Seller's Disclosure form devotes a full page to water intrusion and mold growth. It lists many sources of moisture, both exterior and interior (not enough space to list here-but some would surprise you), and it suggests that buyers may want to have the property inspected for moisture problems before entering into a purchase agreement, especially if they observe staining or musty odors on the property.
So what does this mean for you, Damp? Just as you were smart to head off furnace questions by getting it ready in advance, so you would be wise to eliminate mold sources now, to avoid problems with a potential buyer later.
First, do your best to stop water intrusion from outside: install good gutters and downspouts with adequate extenders, landscape to promote drainage away from the house, and if necessary, drain tile the basement. Next, make sure you're not adding moisture (from plants, humidifier, long showers, etc.) to be trapped inside due to inadequate ventilation.
I've discovered, to my dismay, that most people in south Minneapolis never open their basement windows, thus forgoing the cheapest and easiest way of alleviating mold and musty odors. It's the first thing I ask sellers to do, and they are usually reluctant because of security, or they have no screens, or the windows are stuck tight (no surprise, in a basement with tropical humidity levels!). This is why I'm such a big proponent of glass block windows with vents: around $200 for an average window, they offer light, security, ventilation-and they can pay for themselves by saving the use of a dehumidifier.
Finally, try an ionizer machine to kill existing mold and mildew, even behind walls. I've had astonishing results in my own home, and reports of huge improvement from other people as well. Prices vary; mine cost about $300. So the short answer to your question, Damp: go as far as your wallet will let you--mold needs to be taken seriously.
We'll be going on the market soon, so we want to get our basement in selling shape. We took your advice, and got our furnace cleaned and tested. We cleared everything away from the walls, and the dehumidifier is running full blast. But the basement still smells musty, and the corners show mildew stains. It's discouraging. How far should we go with this?
---Dampened spirits
Dear Damp,
First let's look at our Rogue's Gallery of home menaces over the past thirty years: formaldehyde, lead, radon, asbestos-each has taken its turn as the condition most likely to destroy health and real estate value. Yet none of these will give a buyer pause today (what ever happened to radon tests?), largely because common sense lifestyle practices can usually avoid the dangers posed, and when necessary, abatement or containment is fairly straightforward. One particularly insidious menace, mold, has largely managed to escape official scrutiny up to now, even though it probably accounts for more actual health problems than all the others combined.
But it's a new day, and high time, in my opinion, for mold to land atop this public enemies list. The new state-mandated Seller's Disclosure form devotes a full page to water intrusion and mold growth. It lists many sources of moisture, both exterior and interior (not enough space to list here-but some would surprise you), and it suggests that buyers may want to have the property inspected for moisture problems before entering into a purchase agreement, especially if they observe staining or musty odors on the property.
So what does this mean for you, Damp? Just as you were smart to head off furnace questions by getting it ready in advance, so you would be wise to eliminate mold sources now, to avoid problems with a potential buyer later.
First, do your best to stop water intrusion from outside: install good gutters and downspouts with adequate extenders, landscape to promote drainage away from the house, and if necessary, drain tile the basement. Next, make sure you're not adding moisture (from plants, humidifier, long showers, etc.) to be trapped inside due to inadequate ventilation.
I've discovered, to my dismay, that most people in south Minneapolis never open their basement windows, thus forgoing the cheapest and easiest way of alleviating mold and musty odors. It's the first thing I ask sellers to do, and they are usually reluctant because of security, or they have no screens, or the windows are stuck tight (no surprise, in a basement with tropical humidity levels!). This is why I'm such a big proponent of glass block windows with vents: around $200 for an average window, they offer light, security, ventilation-and they can pay for themselves by saving the use of a dehumidifier.
Finally, try an ionizer machine to kill existing mold and mildew, even behind walls. I've had astonishing results in my own home, and reports of huge improvement from other people as well. Prices vary; mine cost about $300. So the short answer to your question, Damp: go as far as your wallet will let you--mold needs to be taken seriously.
Thursday, August 1, 2002
Raising the Dickens Over Replacement Windows (Again)
Dear Readers: Although it's not my normal practice to recycle old columns, I wanted to harp again on one of my favorite pet peeves. This column from two years ago said it best-and judging from the many responses both pro and con, we uncovered a bit of a controversy. I'd like to know what you think…
Dear Pat,
We plan to add on to our bungalow in the future, but we need to get our house in better shape first. Our concern for now is the windows: they rattle in the wind and leak cold air all winter. Most of the sash cords are missing, so we keep them raised with sticks in the summer. You mentioned in a past column that window replacement doesn't get a high return when selling, but we'd like to get your thoughts on our situation, especially since we plan to stay here.
---Counting the Kids' Fingers
Dear Counting,
First things first: close your windows right now! Go to the hardware store, buy the little metal thingies (called window controls or sash controls) which, when slipped judiciously between sash and frame, will prevent your windows from cleaving the fingers of the innocent. It's true, I have voiced misgivings in the past about the oft-unnecessary installation of replacement windows, yet I don't want to be known as the Madame DeFarge of real estate!
Now, on to the long-term problem. Your least expensive option is to reglaze and refinish the windows, install new sash cords and weather stripping. Along with decent-quality storm windows, this rehabilitation may well leave you nearly as comfortable as new thermopanes could. Big bonus: by preserving the original windows you may be actually enhancing your real estate value. Today, buyers reward the restorer's efforts more than ever before, with original materials held in high regard, as housing and furniture tastes look back to sturdy Craftsman and Mission styles.
It's hard to keep smiling when I walk into a lovely old bungalow, rich with natural wood, and see its simple coherence marred by new white vinyl windows. But new windows have their advantages; and if you can afford them, the better grades of new windows offer architectural integrity and beauty as well as functionality. True divided lights (very expensive) or simulated divided lights (look similar, less expensive) can very nearly duplicate the windows you are replacing-but in all cases, you must use wood, not vinyl. Wood can be stained and varnished on the inside, so it conforms to the rest of your millwork as it acquires the patina of age. Outside, you can paint it to create an accent of color, and change it over the years-just like we've always been able to do-but without the job of re-glazing since there is no putty to deteriorate.
So if you're willing to dig deep, Counting, a quality new wood window can keep you warm and your children whole-but if you're willing to spend the time learning how to recondition your present windows, you can accomplish most of the same things, at a fraction of the expense. I'm sure you'll do the right thing. Good luck!
Dear Pat,
We plan to add on to our bungalow in the future, but we need to get our house in better shape first. Our concern for now is the windows: they rattle in the wind and leak cold air all winter. Most of the sash cords are missing, so we keep them raised with sticks in the summer. You mentioned in a past column that window replacement doesn't get a high return when selling, but we'd like to get your thoughts on our situation, especially since we plan to stay here.
---Counting the Kids' Fingers
Dear Counting,
First things first: close your windows right now! Go to the hardware store, buy the little metal thingies (called window controls or sash controls) which, when slipped judiciously between sash and frame, will prevent your windows from cleaving the fingers of the innocent. It's true, I have voiced misgivings in the past about the oft-unnecessary installation of replacement windows, yet I don't want to be known as the Madame DeFarge of real estate!
Now, on to the long-term problem. Your least expensive option is to reglaze and refinish the windows, install new sash cords and weather stripping. Along with decent-quality storm windows, this rehabilitation may well leave you nearly as comfortable as new thermopanes could. Big bonus: by preserving the original windows you may be actually enhancing your real estate value. Today, buyers reward the restorer's efforts more than ever before, with original materials held in high regard, as housing and furniture tastes look back to sturdy Craftsman and Mission styles.
It's hard to keep smiling when I walk into a lovely old bungalow, rich with natural wood, and see its simple coherence marred by new white vinyl windows. But new windows have their advantages; and if you can afford them, the better grades of new windows offer architectural integrity and beauty as well as functionality. True divided lights (very expensive) or simulated divided lights (look similar, less expensive) can very nearly duplicate the windows you are replacing-but in all cases, you must use wood, not vinyl. Wood can be stained and varnished on the inside, so it conforms to the rest of your millwork as it acquires the patina of age. Outside, you can paint it to create an accent of color, and change it over the years-just like we've always been able to do-but without the job of re-glazing since there is no putty to deteriorate.
So if you're willing to dig deep, Counting, a quality new wood window can keep you warm and your children whole-but if you're willing to spend the time learning how to recondition your present windows, you can accomplish most of the same things, at a fraction of the expense. I'm sure you'll do the right thing. Good luck!
Sunday, July 7, 2002
Duplex Simplex
Dear Pat,
We're moving to another state and need to sell our duplex. I've kept it in great shape, so I don't expect any trouble getting a buyer, but a fellow at work said that the value of our building will be determined by the rents we get. Now that's a big concern, since we think of our long-time tenants as friends, and we've kept the rents really low. Do we need to raise the rents in order to get a good selling price? Of course I want a good price, but I want to be a…
---Fair Landlord
Dear Landlord,
Where were you during my renting years? Hey, keep the building, have it managed. The city needs more landlords like you! All right, if that's not a practical option, let's move on to the heart of your question: will the value of your duplex be determined by the rents you currently get?
The short answer is no. There is a small caveat, which we'll get to in a minute. But there is no need to base your sale price on a rent "multiplier" in today's market. There is an "income approach" to pricing and appraising which was frequently used before the mid 1980's, when many of the tax incentives to owning income property disappeared. It is still used in selling larger multiple unit buildings but not duplexes, since number-crunching investors buy relatively few of them. In my experience, most duplexes sold in Seward/Longfellow today are being bought by homeowners, often by two family members or friends who want to live closely in the same building. I've even heard of a married couple who say they're getting along much better since they've each taken their own space in a duplex!
But there may be one small price to pay for your generous ways, Landlord. If you have signed low-rent leases with one or both of your tenants, then the buyer-whether homeowner or investor-will have to honor that rental price for the duration of the lease. Thus, a buyer who can easily see what today's rents should be would likely offer slightly less to cover the temporary "loss" of full market rental value. Remember, if you're on a month-to-month basis with your tenants, this doesn't apply.
So don't worry about the low rents, Landlord. Spend your time making your building a great place to live. Your highest price will come from someone who wants to call it "home."
We're moving to another state and need to sell our duplex. I've kept it in great shape, so I don't expect any trouble getting a buyer, but a fellow at work said that the value of our building will be determined by the rents we get. Now that's a big concern, since we think of our long-time tenants as friends, and we've kept the rents really low. Do we need to raise the rents in order to get a good selling price? Of course I want a good price, but I want to be a…
---Fair Landlord
Dear Landlord,
Where were you during my renting years? Hey, keep the building, have it managed. The city needs more landlords like you! All right, if that's not a practical option, let's move on to the heart of your question: will the value of your duplex be determined by the rents you currently get?
The short answer is no. There is a small caveat, which we'll get to in a minute. But there is no need to base your sale price on a rent "multiplier" in today's market. There is an "income approach" to pricing and appraising which was frequently used before the mid 1980's, when many of the tax incentives to owning income property disappeared. It is still used in selling larger multiple unit buildings but not duplexes, since number-crunching investors buy relatively few of them. In my experience, most duplexes sold in Seward/Longfellow today are being bought by homeowners, often by two family members or friends who want to live closely in the same building. I've even heard of a married couple who say they're getting along much better since they've each taken their own space in a duplex!
But there may be one small price to pay for your generous ways, Landlord. If you have signed low-rent leases with one or both of your tenants, then the buyer-whether homeowner or investor-will have to honor that rental price for the duration of the lease. Thus, a buyer who can easily see what today's rents should be would likely offer slightly less to cover the temporary "loss" of full market rental value. Remember, if you're on a month-to-month basis with your tenants, this doesn't apply.
So don't worry about the low rents, Landlord. Spend your time making your building a great place to live. Your highest price will come from someone who wants to call it "home."
Saturday, June 1, 2002
Pet Etiquette: Fluffy in the Slammer
Dear Pat,
We're just about ready to sell, but we're concerned about our neighbor's dog. She's a great dog when you get to know her, and she never barks at us, but she can sound pretty threatening to strangers. What if she barks at everyone who walks around our home during the open house? We have a dog, too, and a cat. What about them?
----Too Many Animals
Dear Animalized,
It's true that prospective buyers may not understand that your neighbor's dog is just doing her job: barking at strangers and protecting her home (and yours). Make sure your Realtor meets the dog and makes friends-this can go a long way to solve your problem during the open house and any private showings your agent arranges. Your agent can also leave helpful dog info in the listing database for other MLS agents who arrange to show the home.
Ideally, you can get your neighbors to keep the dog inside during the open house, and once "Fluffy" gets to know the new owners, peace can return. If you actually have doubts about this quiet outcome, it would be best to tell the buyers about the dog at the time of purchase to avoid hard feelings later.
Your own pets present other challenges. Many people arrange to have their dogs out of the home for the first few days on the market (during the heaviest showing activity). Cats are easier, and usually stay in the house. We often use signs requesting that agents make sure the cats remain inside during showings. Another note about cats: you must locate the litter box in the basement, away from the living spaces, and keep the box meticulously clean at all times. Remember, most homes sell quickly, so this radical lifestyle change won't have to last unbearably long!
A final word on pet etiquette: most sellers are pretty scrupulous about cleaning away all traces of pet odor, dander and yard droppings during the time on the market. But all too many buyers are dismayed to find their new yard is full of doggie housewarming "gifts" by move-in day. Good luck, I'm sure you'll do the right thing!
We're just about ready to sell, but we're concerned about our neighbor's dog. She's a great dog when you get to know her, and she never barks at us, but she can sound pretty threatening to strangers. What if she barks at everyone who walks around our home during the open house? We have a dog, too, and a cat. What about them?
----Too Many Animals
Dear Animalized,
It's true that prospective buyers may not understand that your neighbor's dog is just doing her job: barking at strangers and protecting her home (and yours). Make sure your Realtor meets the dog and makes friends-this can go a long way to solve your problem during the open house and any private showings your agent arranges. Your agent can also leave helpful dog info in the listing database for other MLS agents who arrange to show the home.
Ideally, you can get your neighbors to keep the dog inside during the open house, and once "Fluffy" gets to know the new owners, peace can return. If you actually have doubts about this quiet outcome, it would be best to tell the buyers about the dog at the time of purchase to avoid hard feelings later.
Your own pets present other challenges. Many people arrange to have their dogs out of the home for the first few days on the market (during the heaviest showing activity). Cats are easier, and usually stay in the house. We often use signs requesting that agents make sure the cats remain inside during showings. Another note about cats: you must locate the litter box in the basement, away from the living spaces, and keep the box meticulously clean at all times. Remember, most homes sell quickly, so this radical lifestyle change won't have to last unbearably long!
A final word on pet etiquette: most sellers are pretty scrupulous about cleaning away all traces of pet odor, dander and yard droppings during the time on the market. But all too many buyers are dismayed to find their new yard is full of doggie housewarming "gifts" by move-in day. Good luck, I'm sure you'll do the right thing!
Wednesday, May 1, 2002
A Realtor’s Dream
Dear Pat,
My neighbor is just putting her house on the market. She worked a long time getting it ready to sell, which it needed, but she did one thing I just don't understand: she actually had her basement drain tiled. My basement is often wet, too, but I'm not going to spend thousands extra when it's my turn to sell. I know you are always talking about fixing houses before they go on the market, but this seems too extreme. What do you think? I say she's…
---Going Too Far
Dear Going,
We'll get to the real estate aspects of your question in a minute, but first I want to share a dream with you: imagine a world where we all can laugh when the spring storms deluge our yards, where little girls and boys have dry rec room space to ride their trikes, where grandma can retrieve her fall canning without wearing hip boots…this is my dream, a drain-tiled world! OK, so it's not a lofty MLK dream, or even a John Lennon. But it's a dream shared by Realtors everywhere (except maybe in the desert Southwest), who suffer panic calls every April and May when their new listings start springing leaks!
For the dry-minded, here's a quick primer: drain-tile is not really tile at all, but is a perforated, 6-inch-wide plastic tube set around the base of the building foundation, collecting moisture and sending it to a sump pump, which pumps the water up and away from the house. All new construction and fully excavated additions are required by local codes to be drain-tiled, and it's a cheap and easy installation before the concrete floor is poured. Old-house dwellers will have to pay much more-typically $3000-$4000 for an average basement-to have a drain-tile contractor break out the existing floor around the perimeter, install the tile and sump pump, and re-pour the concrete needed. Too pricey, you say? Consider these dollar arguments for drain-tiling:
1. What would you pay to add an extra room or two to your home, say an additional 500 square feet? A one-story addition, with crawlspace (no basement) would cost between $30,000-$50,000. For the cost of drain-tiling, you gain 500 feet of dry space in your basement, with additional interior finishing costs ranging from $3000-$10,000.
2. When the roof is bad, virtually every sane person shrugs and shells out the $5000-
$7500 it takes to re-roof if a tearoff is required. Remember, half that amount could
bring the same peace of mind about water coming in from below, and create lifestyle
options for you (see #1).
3. While drain-tiling is a last-resort solution for water problems (after soil contouring and improved gutters and downspout extenders), in many cases it is the only way to a dry basement. Buyers are aware of this, too, and will often factor a wet basement into their offering price.
My neighbor is just putting her house on the market. She worked a long time getting it ready to sell, which it needed, but she did one thing I just don't understand: she actually had her basement drain tiled. My basement is often wet, too, but I'm not going to spend thousands extra when it's my turn to sell. I know you are always talking about fixing houses before they go on the market, but this seems too extreme. What do you think? I say she's…
---Going Too Far
Dear Going,
We'll get to the real estate aspects of your question in a minute, but first I want to share a dream with you: imagine a world where we all can laugh when the spring storms deluge our yards, where little girls and boys have dry rec room space to ride their trikes, where grandma can retrieve her fall canning without wearing hip boots…this is my dream, a drain-tiled world! OK, so it's not a lofty MLK dream, or even a John Lennon. But it's a dream shared by Realtors everywhere (except maybe in the desert Southwest), who suffer panic calls every April and May when their new listings start springing leaks!
For the dry-minded, here's a quick primer: drain-tile is not really tile at all, but is a perforated, 6-inch-wide plastic tube set around the base of the building foundation, collecting moisture and sending it to a sump pump, which pumps the water up and away from the house. All new construction and fully excavated additions are required by local codes to be drain-tiled, and it's a cheap and easy installation before the concrete floor is poured. Old-house dwellers will have to pay much more-typically $3000-$4000 for an average basement-to have a drain-tile contractor break out the existing floor around the perimeter, install the tile and sump pump, and re-pour the concrete needed. Too pricey, you say? Consider these dollar arguments for drain-tiling:
1. What would you pay to add an extra room or two to your home, say an additional 500 square feet? A one-story addition, with crawlspace (no basement) would cost between $30,000-$50,000. For the cost of drain-tiling, you gain 500 feet of dry space in your basement, with additional interior finishing costs ranging from $3000-$10,000.
2. When the roof is bad, virtually every sane person shrugs and shells out the $5000-
$7500 it takes to re-roof if a tearoff is required. Remember, half that amount could
bring the same peace of mind about water coming in from below, and create lifestyle
options for you (see #1).
3. While drain-tiling is a last-resort solution for water problems (after soil contouring and improved gutters and downspout extenders), in many cases it is the only way to a dry basement. Buyers are aware of this, too, and will often factor a wet basement into their offering price.
Tuesday, April 2, 2002
Preserving Your Memories
Dear Pat,
We're selling my grandmother's home, which has been in the family for 65 years. It's hard for us, but we all have homes of our own. We've been thinking about keeping the dining room chandelier and two matching wall sconces in the living room. I've always loved these treasures, and I know that keeping them will help us let go of her house. Should we take them out before we show the house, or leave them in and give an allowance for replacement?
---Hard Letting Go
Dear Hard,
I'll tackle your real estate question in a minute, but first let me implore you: please don't destroy the integrity of your grandmother's beautiful home by taking out parts of the original structure. I can't tell you how often I've seen lovely old light fixtures stored away in dusty basements, waiting the day when a suitable home can be found for them. (I suspect most never light a dinner table again.) Sadly, my own experience still serves as a lesson: a few years ago, full of romantic notions about memories and continuity, I took the chandelier from our beloved former home to the new one we were renovating. But, while perfect in our old house, it seemed wrong in the new space; a month later it was gone.
Remember that your memory of the home is with everything intact. You might try taking pictures throughout the interior with the furniture looking the way it did when you were visiting your grandmother. When we left the home we raised our children in, I made a nice album of interior and exterior pictures, and found it really helped me to say good-bye…
(sniff…) OK, Hard, here's the real estate answer. If you're determined to take an original light fixture, it's always best to replace it before going on the market, since a buyer is sure to fall in love with it. Pre-market replacement with a lesser fixture may lower the home's appeal, but a frustrated buyer can cost you both money and emotional distress. (Think of the old WW I song: "how you gonna keep 'em down on the farm/ after they've seen Paree…") However, it's common for sellers to take a special plant or two from the garden (like grandma's rose bush), or some cutting of perennial flowers. Do this before market if possible, or be sure to state your intention in the purchase agreement if you need to come back in the spring. Meanwhile, please consider my suggested option regarding the light fixtures. I know you'll do the right thing!
We're selling my grandmother's home, which has been in the family for 65 years. It's hard for us, but we all have homes of our own. We've been thinking about keeping the dining room chandelier and two matching wall sconces in the living room. I've always loved these treasures, and I know that keeping them will help us let go of her house. Should we take them out before we show the house, or leave them in and give an allowance for replacement?
---Hard Letting Go
Dear Hard,
I'll tackle your real estate question in a minute, but first let me implore you: please don't destroy the integrity of your grandmother's beautiful home by taking out parts of the original structure. I can't tell you how often I've seen lovely old light fixtures stored away in dusty basements, waiting the day when a suitable home can be found for them. (I suspect most never light a dinner table again.) Sadly, my own experience still serves as a lesson: a few years ago, full of romantic notions about memories and continuity, I took the chandelier from our beloved former home to the new one we were renovating. But, while perfect in our old house, it seemed wrong in the new space; a month later it was gone.
Remember that your memory of the home is with everything intact. You might try taking pictures throughout the interior with the furniture looking the way it did when you were visiting your grandmother. When we left the home we raised our children in, I made a nice album of interior and exterior pictures, and found it really helped me to say good-bye…
(sniff…) OK, Hard, here's the real estate answer. If you're determined to take an original light fixture, it's always best to replace it before going on the market, since a buyer is sure to fall in love with it. Pre-market replacement with a lesser fixture may lower the home's appeal, but a frustrated buyer can cost you both money and emotional distress. (Think of the old WW I song: "how you gonna keep 'em down on the farm/ after they've seen Paree…") However, it's common for sellers to take a special plant or two from the garden (like grandma's rose bush), or some cutting of perennial flowers. Do this before market if possible, or be sure to state your intention in the purchase agreement if you need to come back in the spring. Meanwhile, please consider my suggested option regarding the light fixtures. I know you'll do the right thing!
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