Ask The Tough Questions!

Real Estate ConceptThis week’s post is courtesy of negotiation consultant and blogger, Chad Ellis.

During a recent family visit my father reminded me of an unusual house near where I grew up.  It was a lovely house with a good-sized yard next to a pond.  Perfect for a family, and many families happily bought it.  In fact, the house was bought by a new family almost once a year, for what always seemed a bargain price.  Most families sold the house within a year of moving in.

Nothing was wrong with the house, per se.  The problem was that the yard and pond were the summer home for a large flock of geese.  During the warm season they would arrive and spend the next few months defecating all over the yard, turning what looked like a dream into something quite less pleasant.  When the geese had gone, the new owners would look at their mess of a yard, clean things up as best they could, and put their lovely house on the market.

In my last post we discussed the importance of information.  Clearly the buyers of this home lacked a key piece of information.  But why?  Buying a home is a big deal — for most of us it’s the biggest purchase we’ll ever make.  Paying 10% more than you have to is a huge loss as is buying a house you decide you can’t keep.  Even without the Internet making research fairly easy, it would have been relatively easy for home buyers to learn about the history of the Goose House.  So why didn’t they?

In my experience, there are two reasons people enter negotiations without key information.  First, we don’t make a list of what information we’d like to have.  Second, we become extremely reluctant to ask questions.

If anything, this problem escalates with major purchases.  The same person who will check movie reviews before putting $10 and an evening at risk will do little or no preparation when buying a house or negotiating salary at a new position.  Having more at stake sometimes makes us less willing to prepare, perhaps because it’s more frightening to admit a lack of knowledge when it comes to something important.  If this sounds like you, make extra certain that you commit to asking the sorts of questions we discussed last time.  Then, when you consider about how you might go about acquiring that information, be aware of the options that make you uncomfortable — and spell out the costs and potential gains of that option.  An experienced buyer’s agent you trust can help you to identify the tough questions you need to ask and will know how to ask and where to look to get the answers.

If the buyers of the Goose House had done that, they might have learned about the house’s history…and avoided a costly mistake.

Chad Ellis
Check out my Negotiations Blog:
www.negotiatewithchad.blogspot.com

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A Tale of Three Roofs

In the course of a day or a week, how many houses do you think you pass and observe? Homes can be unique in their style and architecture, but roofs generally fall into one of three broad categories: gabled, hipped and flat.

The type of house usually referred to as “Gambrel” or “Dutch Colonial,” is a prime example of a house with a gabled roof. The gabled roof is characterized by two or more sloping planes supported at each end by triangular wall extensions, known as gables, which occur at varying angles. The actual “gable” is the part of the wall between the sloping roof lines.

Side Gable Roof
Cross Gabled Roof
Front Gable Roof

 

The key to recognizing a hipped roof is that all the roof surfaces slope downward to the walls.  It usually results in the roof having a pyramid-like appearance.


A hip roof on a rectangular plan

A square hip roof (also known as
a “pyramid roof”)

Flat roof with parapet walls

 

The last major type of roof is the flat roof.  This roof is fairly self-explanatory and is evident in so many of the triple deckers found locally. Flat roofs are normally built with parapet walls or eaves. A parapet wall is a continuation of the side walls, or a separate structure around the perimeter of the roof that rises higher than the roof.

Italianate eave with brackets

Eaves are simply that part of the roof that over hang the supporting walls:

Although there are many variations and combinations of these three roofs, if you look closely at any building, you can easily deduce the basic roof type from which it originates.

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Making The Most Of Your Real Estate Agent

chalkI recently spoke with a man whose parents owned a residence in Boston. His parents were considering selling their home and he indicated that, once they made a decision, they would contact me. This approach is a great example of a missed opportunity. If his parents already have a relationship with an agent they trust, they have an excellent opportunity to get some high quality free advice and consultation. If his parents don’t have an agent, they can evaluate the agent’s services on a trial basis and possibly get free advice and consultation.

The greatest value of having a relationship with a real estate agent you can trust is that you can consult with him or her regarding major real estate decisions. For a seller, what decision is more important than the initial decision to sell? Even a seemingly simple situation can actually be quite complex. For example, suppose you are transferred to the west coast. Do you need the equity out of your home so you can purchase in California? Should you rent out there first? What are the implications of renting your home here? How solid is the current market and how confident are you that the real estate market will get better for sellers, stay the same, or get worse? And how does all of this factor in to your decision?

Consulting with an agent regarding your decision to sell reveals the ability of your agent to objectively analyze your situation and offer sound advice. A good agent with a consultative approach can assist in fully analyzing and synthesizing all the different factors to help you make a powerful choice that furthers your goals.

Many people, however, make these decisions without expert advice, because they are uncomfortable bringing in an agent to help them. This is understandable. They don’t have a real estate agent they can trust. Because agents work on commission, they naturally have a bias in favor of wanting you to sell. It is difficult for them to be completely objective in their analysis and advice. However, at some level, almost all professionals have a personal financial bias. It all comes down to trust. Can you trust that your real estate agent has enough integrity to keep your interests truly in mind and be as objective as possible?

Your agent’s trustworthiness will be put to the test by consulting with him or her regarding the decision to buy or sell. The primary piece of information that you probably need, if you are thinking of selling, is an accurate picture of the value of your home. Most agents offer this analysis without charge. Not surprisingly, the raw data is subject to interpretation and the final value is more art than science.  Agents are often overly optimistic about the value of your property. You want the home to be worth as much as possible, and the agent wants the business. An experienced agent, who understands the market, and is good with the numbers, is the starting point. Only an agent you trust, and one who really understands the value of a long term agent-client relationship, can give you a truly honest appraisal of your home’s value. If you already have an agent you trust then this information will be very valuable. If you are working with an agent who is new to you, vigilantly check your agent’s references and consider how much you trust the agent before making any decisions. If you feel that the agent has genuinely assisted you in the decision-making process, and there is a foundation of trust, even if you decide not to sell in the current market, you have found the right agent. {Please Comment Here}

More Real Estate Eye Candy

I fully intend to blog on some more serious subjects other than just real estate “eye candy,” but, I couldn’t help but comment on another ultra-high-end property that just hit the market today.  I am speaking, of course, about the Penthouse atop the Albert A. Pope building at 221 Columbus Ave.  This is the building developed by Paul Roiff in the late 1990s. The Penthouse built on the roof, which you have probably seen from the Mass. Pike, is his personal residence. similar sites It is now on the market for the first time (a mere $7.2M).  The restaurant Mistral is on the street level. Check it out:

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A Peek at the Ultra High-End

Hi. Welcome to my new blog. If you are reading this you are also reading the very first entry.

Did you happen to read the Boston Globe on Friday July 8th? You might have caught the front page article entitled “What price luxury.” See the Boston.com article here. In a nut shell, the 6,829 square foot Penthouse at the Mandarin on Boylston Street in the Back Bay just sold for $13.2M (Hey you do get 4 parking spaces for your $10,000+ per month condo fee, and 3000 sqft of deck space). The sellers paid about $13.1M about 3 years ago, and never even moved in. secure server . Interestingly, these same sellers put it on the market for $16.99M and it took 32 months for it to sell.

This appears to me to be the most expensive condominium ever sold in the city of Boston. Second Place goes to another Mandarin unit that recently sold for $12.2M and 3rd place to a Penthouse Unit at 51 Comm. Ave. that sold last year for $10.8M. That unit took 4 years to sell. Currently there two other off-the-charts Penthouses available. One at the new Clarendon for $6.75M and the other at the Four Seasons for $8M. If you’re really interested in the Clarendon unit, ask me about as I saw it a couple of weeks ago.

New York has had $10M+ apartments for a long time so why not Boston? I don’t think it says too much about the real estate market in general. One, it means that Boston is attracting some of the super rich. That is good as it helps maintain Boston’s reputation as a world class city. And two, no matter what the price range, overpricing your property is still a bad strategy.

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