Archive for the 'Living in Montclair' Category

I’ve been reading a lot lately about our national housing crisis, and there are definitely some sobering statistics out there. According to a recent article in The Wall Street Journal, home ownership is falling at the fastest rate since the Great Depression. There is a silver lining, though: now is a really good time for renters to buy a home.

Jack Hough, the author of the WSJournal article, explains that because house prices have fallen so dramatically since 2005, the ratio of house prices to yearly rents is shifting in favor of buying. He compares a house’s price/rent ratio to a stock’s price/earnings ratio; in both cases a lower ratio means that more income can be generated for the price paid. And the price/rent ratio has been dropping steadily over the past several years.

Most first-time home buyers are primarily concerned with getting a  mortgage, and here too, the numbers are in their favor. The 30-year mortgage rate is currently just over 4%, almost a record low. Mortgages are not as easy to obtain as they were during  the housing bubble, but qualified applicants (those with a job, a good credit rating and enough cash for a down payment) will be rewarded with low monthly payments.

Here’s a current example of a 2 bedroom “rent” option in Montclair vs. a 2 bedroom “buy” option.

• RENT: 18 Baldwin Street. 2 bedrooms, 2 bathrooms. Rent: 2300/month
• BUY: 50 Pine Street. 2 bedrooms 2.5 bathrooms.  Mortgage: $1050, property tax $695, HOA fee $225 = $1970/month

The bottom line for renters: now is the time to take the plunge.

Driving around town this past week, I’ve seen a huge number of Montclair homes that were hit hard by the snowstorm of October 29. Drooping power lines and downed trees are unfortunately a common sight these days. Power lines are obviously a matter for PSE&G to deal with; trees, however, may be your responsibility.

If one of your trees falls on your own property, it is your responsibility to get it to the curb; the town of Montclair will then remove it for you. Any damage to your home is also your responsibility–call your insurance company.

But what if a neighbor’s tree falls on your property? In an article on the website Houselogic.com,  DC-area author Ann Cochran explains that you should still contact your own insurance company.  The cost of removing it is your neighbor’s responsibility only if you can prove that he knew that the tree was at risk of falling (due to disease, e.g.) and did nothing about it. In the case of a freak snowstorm, this is unlikely.

The same logic applies if one of your trees falls onto your neighbor’s property. Cochran recommends doing nothing until you hear from your neighbor’s insurance company. Removing the tree is your responsibility only if your neighbor can prove that you knew it was a hazard and did nothing about it.  Having said that, it’s always neighborly to offer to remove the branches – even if legally, it’s not your responsibility.

Property damage is very upsetting. Knowing your rights and responsibilities as a homeowner is a good way to prevent it from escalating into a neighborhood dispute.

For all homeowners tired of advice  from realtors on how to sell your home, here is something different–a list on how not to do so.

Ten Things Not to Do When Selling Your Montclair Home

1. Price your home with “room to negotiate.” Sellers think that the more they ask for, the more they will get; study after study has shown that this is not the case. It is ultimately the buyer, not the seller, who decides the price. Pricing your home “slightly higher than what it’s worth” will only serve to keep potential buyers from even looking at your house.

2. Take too long to respond to an offer. Potential buyers read a lot into your actions; they will think you are not interested in their offer and thus turn their attention to other prospects.

3. Refuse to counter a low-ball offer. You can’t take it personally; this is a business transaction. Come down a little bit in your asking price just to keep a dialogue going. And if another offer happens to come in, you now have some leverage on both ends.

4. Follow buyers around, pointing out your house’s charms. Buyers need to be able to visualize themselves and their belongings in your house. They need to make an emotional connection first; your chatter is a distraction.

5. Contact buyers directly. There are too many opportunities for miscommunication and misunderstanding if you do so. This is what real estate agents and lawyers are for.

6. Convince yourself that it’s not worth painting the house because the buyers will want their own colors. This is a classic case of being penny-wise, pound-foolish. If your goal is to sell your house, remember that you only get one chance to make a good first impression. A neutral color and a fresh coat of paint are always best.

7. Refuse to address home inspection issues because your house is “as-is.” If  problems such as mold, asbestos or termites are discovered during an inspection, the buyers will expect you to fix them; In this market, with so much inventory to choose from, buyers do not have to accept a house with major a safety issue. Moreover, once a problem is discovered, you are legally required to disclose it to all potential buyers in the future.

8. List your house as an “office exclusive.” Unscrupulous agents may try to convince you that only the agents in their particular office are trustworthy; this is an attempt to keep other agents from getting the sale (and the commission). Obviously, the more agents trying to sell your house, the better – go with an agent who will “multiple list” your house.

9. Make your house difficult to show. Many homeowners are conflicted about selling, so they limit the days/hours that agents can get into their home. If agents can’t show your house, they can’t sell it.  Your house must be competitive not only in price and condition but also in ease of showing.

10. Try to conceal problems you know exist. First of all, this is fraud. Secondly, whatever the problem is, it will ultimately be found. A freshly-painted basement, for example, immediately suggests to a home inspector an attempt to cover up water damage.

Walkablilty makes no sense unless we have somewhere interesting to walk to. Walking around the neighborhood in loops is only valuable if you’re looking for an exercise regimen. Destination walking is where it’s at and shops, stores and restaurants are at the top of the list. Have you ever tried to find parking in downtown Montclair on a Friday or Saturday night? Well, it takes some strategic planning to score a prime spot across from your favorite haunt. Imagine those lucky ducks who just stroll out their front door, walk a few blocks and BAM!- they’re in the hub of Montclair’s dynamic restaurant scene with 130 of New Jersey’s most fabulous places to eat.

Well guess what? It turns out commercial real estate benefits from walkability too.  Not that I’m surprised.  According to The Harvard Business Review, an increase of 10 points in walkability out of a score of 100 increases the value of the property by 9%.  What does this say to me?  That houses and retail have a symbiotic relationship and it’s good when they’re not too far away from each other.

Montclair NJ is a great example of how well this works.  Montclair has 5 thriving business districts all of which are nicely nestled among our neighborhoods.  From north to south there’s Upper Montclair Village, Watchung Plaza, Walnut Street, Montclair Central and South End Village. If you live in Montclair, what restaurant do you walk to?

I’ve always liked the idea of solar energy: it’s non-polluting, infinitely renewable, and available domestically. Now, thanks to a 30 % federal tax credit  and the ability to sell SRECs (solar renewable energy certificates) to power companies, it’s also financially feasible. So I am having solar energy panels installed on my roof.

As part of the solar panel system, I also needed to install 3 inverters in my home. Inverters convert the solar energy produced into usable voltages; Call me weird, but I really enjoy going down to my basement to watch them count up the kilowatts of energy being generated.

The panels are just about done; once I have the final approvals in place, they will generate around 1/3 of the electricity I need to run my house. This project has not been cheap, but I expect to recoup the cost in around four years. After that,  it will provide me with an annual cash flow of several thousand dollars. Putting solar panels up is a win-win situation: I will ultimately save money while I do my small part to save our planet. It’s something that anyone with a south facing roof can do – There are even free options if you don’t have the cash to pay for the panels.  If you’d like to know more about it email me or read more on the piece from Baristanet.

Some of my seller clients spend several months and thousands of dollars upgrading a home before putting it on the market.  But for homeowners who are short on time and cash, there are some very effective smaller  projects that will increase value and reduce time-on-market.

1. Expose hardwood floors..  There is a decided preference for hardwood floors in Montclair. Worn carpet is a real turn off to buyers and they often fret about what might be underneath.  With a hammer and a sharp knife,  carpet removal is an easy and free DIY project to raise the value of your home.

2. Paint rooms in a light neutral color with white or off-white trim. Montclair’s 1920s colonials look fresh and modern with this simple combination. Wall paper and dark colors can be an obstacle for some buyers and a new coat of paint is one of the best investments you can make for $25.

3. Hire a professional cleaning service right before the home goes on the market.  Even if you’re a clean freak and consider your home to be spotless, a professional cleaner will do things that are not part of your routine and make you home sparkle like never before. Cost: $100 to $300.

4.  Have the windows washed by a professional.  Most services will do inside and out as well as the storm windows.  Have them remove the screens from windows that you usually don’t open.  Shiny windows and a clear view let in more light and make a world of difference. The cost should be about $6 per window.

5. Power wash your house, front steps and deck- and the gutters too. Moss and dirt make a house look uncared for.  You can buy a small washer for under $200 or rent one for $50/day.  Or hire a professional for about $500.

6.  Remove dark, heavy drapes and vertical blinds and replace with wood blinds or sheer curtains – or just leave the windows bare if privacy is not an issue.  Let as much natural light in as possible.

7. Spruce up the bathroom with a new, high quality, white shower curtain. Recaulk the shower and tub.  Replace the toilet seat if it is yellowed or worn.

8. Refresh the front door with a new coat of paint in a complementary accent color.  Replace the mailbox, house number and door hardware to update the look.

9. Hire a landscaper to do a “spring clean-up” of the yard, even if it’s summer or fall.  Professional crews employ equipment and skills that most homeowners don’t have. It’s like doing a deep cleaning of your front yard. Having last season’s sticks, leaves and yard debris removed will boost your curb appeal and your home’s value.