The Greenwich Home Blog
People often ask whether they should buy a home now or wait. Recently released data suggests that waiting may not make sense as prices seem to again be on the rise. Let’s take a look at some of the data and commentary on the subject:
Ed Stansfield, chief property economist at Capital Economics:
“The current tightness of supply conditions would normally be consistent with much faster price growth. The continued steady growth in home sales that we expect this year will only add to this upward pressure on prices.”
“The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a 4.1% annual gain in March 2015 … with a 0.8% increase for the month.”
Anand Nallathambi, CEO of CoreLogic
“All signs are pointing toward continued price appreciation throughout 2015… Tight inventories, job growth and the impact of demographics and household formation are pushing price levels in many states toward record levels.”
Danielle Hale, Director of Housing Statistics at NAR
“Even without further acceleration, the pace of price growth remains too high. Strong buyer demand and low inventories coupled with relatively low new construction are helping to push prices up, keeping the housing market tipped in favor of sellers.”
FHFA Principal Economist Andrew Leventis
"The first quarter saw strong and widespread home price growth throughout most of the country. Home prices are now, on average, roughly 20 percent above where they were three years ago. This run-up has been historically exceptional and is particularly notable in light of the limited household income growth and modest rate of overall inflation observed during that same time period."
Bottom Line
If you are planning on buying a home in the near future, waiting probably doesn’t make sense from a purely pricing standpoint.
Even though the record-breaking snow fall and frigid winter didn’t slow down a strong start to the Greenwich real estate market in 2015, you still need to make sure you are partnered with an experienced and adept agent. If you are a buyer or a seller it is important to know that the Realtor you decide to work with has the necessary knowledge to complete a successful transaction. The following are some of the Realtors tools that come with experience, motivation and education.
LOGISTICS:
A realtor must know how to navigate the town hall and the departments that have vital information about the property that is being bought or sold.
The Assessor’s office has the tax cards that represent the lot size, square footage of the improvements, the assessment, property taxes and much more. Don’t forget your quarters as these cost .50 cents -- any good realtor could tell you this is the best deal at town hall.
The Records Room is an excellent source of information. If a renovation or addition was done the work needs permits and inspections with a final sign off by the Building Department. Permitted plans for any work that was done to the house are kept on file in the Records Room. This is also where a survey of the property may exist. There are two stamps that need to be placed on the architectural plan. One is blue and says “Plans Reviewed for Zoning Compliance” with a date and a signature of the zoning officer. The other is the final approval which is red and reads “DIV.BUILDINGS. APPROVED. GREENWICH, CONN. with the date of the approval.
HOW WETLANDS IMPACTS GREENWICH RESIDENTIAL REAL ESTATE:
There are major restrictions that the Wetlands Department enforces such as a 35 foot setback, run off, drainage, rain gardens, etc. The G.I.S. Department has the maps on every property in town. These maps show wetlands and contours on the property. This map is a must have both for marketing purposes and buyers knowledge. Not all properties have updated maps so if you’re not sure if wetlands type soils exist on the property it is inexpensive to have a Soil Scientist do a simple study.
GREENWICH HEALTH DEPARTMENT:
There are two of these departments within Greenwich's town hall. The 3rd floor is where you can find the file for the property's septic plan. If not on town sewer, then the home uses a septic system to dispose of waste water. It is crucial to understand the age of the system, its size, condition and design. The amount of bedrooms a house can have is determined by the size of the septic. The amount of bathrooms does not count but access to a bathroom determines what is considered to be a bedroom. For example an attic can’t be finished if it has access to a 2nd floor hall bath and the septic isn’t large enough to support it. If a reserve area is discovered by an engineer by doing “perk tests” then additional bedrooms can potentially be permitted. The reserve doesn’t need to be installed just discovered, designed, and approved by the health department. There are setbacks to a septic tank and leaching fields that can hinder the installation of a swimming pool or expansion of a structure.
FLOOR AREA RATIO (FAR) IN GREENWICH:
A realtor needs to be able to calculate what the F.A.R. is on a property. This determines how many square feet can be built on the lot. The Greenwich Municipal Code has a multiplier for each zone in town that is used to multiply against the lot size. How do you find how many square feet the lot is? You multiply the lot size by a square acre which is 43,560. For example if the lot is .25 and you multiply that number by 43,560 you will discover the lot size is 10,890 sq. ft. The multiplier for the R-12 zone is .315 so the amount of F.A.R. on this particular lot is 3,430 square feet. This includes garage space but does not include finished space that is below grade. To be below grade the first floor cannot be more than three feet above ground. This is discovered by doing a grade plane study with an engineer. The height is calculated on average ten feet away from the foundation around the circumference of the structure. Why is this important to know? Most buyers ask if there is any F.A.R. left on house so it is helpful to give a rough estimate if there is room to expand or is the structure at its maximum potential. Just because there is additional F.A.R. that does not ensure expansion potential.
RESIDENTIAL GREEN SPACE IN GREENWICH:
There is a new restriction on every property in town which is called Green Space. This regulates how much coverage the property is allowed to have which includes patios, driveways, eaves on the roof line of the house, swimming pools and more. The Realtor must know how much coverage there is and the percentage that remains. Thankfully the town hall has supplied the information on their website. One of these days, I'll cover how to navigate GreenwichCT.org the website that hosts many layers of information.
A Realtor must know what their client is buying or selling. Having this knowledge upfront can save a lot of time while searching for the right property or preparing to market a home. To know the market and your future real estate investment you need to know your realtor!
Having the opportunity to market and show Milbank Court, a wonderful in-town community of 17 town homes located in downtown Greenwich CT, I have learned that many of today’s buyers are looking to simplify their lives and homeownership responsibilities.
Some of the buyers I have met are interested in downsizing out of a larger home, stating they are “empty nesters” as their children have moved on. They still need a guest room or two for out-of-town visitors. Some have grand children who need play space. Many of these buyers are also interested in lowering their property taxes so I encounter a lot of people coming from New York State. Some of them are multiple homeowners and will only spend part of the year in Greenwich. Everyone wishes to lose the property maintenance that a larger home with land requires.
Milbank Court has many solutions for the downsizing buyer, offering easy living in a community close to downtown Greenwich and all that has to offer. As most of you know, downtown Greenwich has a multitude of restaurants, shops, parks with tennis courts, a ferry that takes passengers to the local islands and beaches, Metro North train to NYC, local gym’s including the new YMCA -- all within walking distance.
Each unit is delivered complete with a fresh renovation offering the best in today’s interior finishes. Each home is an end unit featuring light and bright interior spaces. The buyers are pleased to find the brand new bathrooms and fresh clean kitchen exhibiting honed marble counter tops and stainless steel professional grade appliances. Three to four bedroom units include a finished lower level space with a full bathroom and laundry. Multiple windows bring in natural light. This turn key offering allows the buyer to move right without the hassle of costly updates.
Unique to the townhouse marketplace, Milbank Court offers private outdoor space. Buyer’s have been delighted to find a covered front porch that makes a nice sitting area and a separate patio ideal for a table and grill. Mature landscaping and gardens throughout the grounds create a lush presentation.
Importantly, the property taxes are about $10,000 a year and common charges only around $500 a month based on the size of the unit which takes care of the landscaping, snow removal, refuse collection, some building maintenance and more. This allows the home owner freedom to travel and enjoy their second home.
Low property taxes and common charges coupled with a turn-key renovation and low maintenance makes for an easy solution for those interested in downsizing and simplifying.
The price point is attractive compared to the Greenwich real estate marketplace with units priced from $1,795,000 to $2,050,000. First Republic Bank has a loan package for qualified buyers. Find more information and view the various floor plan options at www.milbankcourt.com.
From the SOUND OFF column in the Greenwich Time, February 6th, 2015
Q: What renovations would not increase the value of a home for sale?
A: When considering undergoing a home renovation, it is important to weigh many factors that will determine the return on investment.
Is the intention of the renovation to sell in the near future, or does the owner plan on staying in the home for years? If an owner’s aim is to sell in the near future, it is important to consider the current trends in the market. Making personal choices that are not in style with these trends may be a costly mistake. If the owner’s outlook is to stay for a long period after the renovation, then using timeless finishes is best. Today’s style may no longer be acceptable to the market when it’s time to sell. Choices on finishes such as flooring, tile, countertops and light fixtures influence a buyer’s perception of value.
Cutting corners, or trying to save money in the wrong places, can also be a costly mistake when doing a renovation. For example, buying cheap tile and having it turn color when it is exposed to the wet thinset used when applied to the wall or floor can hurt.
Keeping up with technology is also a factor. In today’s world of Bluetooth and wireless electronics, it may not pay to have the house hard-wired for a sound system or security cameras. Lighting and thermostats can now be controlled remotely from a smartphone.
Lastly, specialty renovations are also a subject of concern. For instance, elaborate wine cellars are an expense that the next homeowner may not be interested in. I previewed a home today that had a 2,000-bottle climate-controlled wine cellar that the next buyer replaced with a sound studio for band practice. Put simply, be aware of the “personal touch” choices when renovating a home.
A closing thought: It is important not to be the most expensive house in the neighborhood because the value of a home is dependent on the market, therefore, the cost of the renovation should not exceed the value of the home.
See link to original article here
Let me give you an example with regards to choosing materials for your counter tops.
There are many choices when it comes to counter tops such as granite, marble, soapstone, wood, stainless steel, laminate, quartz and more. However, If you decide to use marble your decision is only half way complete.
In addition to what type of marble you will choose, you will also have to decide what the finish is going to be. Honed or shiny?
What is Honed? Honed is a matte finish that is applied to the stone. The dull finish is created by using a machine or an acid bath. This is a soft look versus the shiny polished version. The Honed finish is more prone to etching. What is an Etch? An Etch is a mark created in the stone.
Marble is a very soft stone and is prone to etching. Acidic products cause this effect by actually eating away a minute portion of the stone’s surface. A drop of red wine, lemon juice, tomato sauce or even a wet margarita glass can cause this effect. The calcium carbonate in the stone allows this to happen as it reacts with the acid found in most of the foods we eat every day. An etch is not damaging, it’s character building and can only be slightly seen at certain angles. Etching occurs mainly when a honed finish treatment is applied to the counter top.
Etching is part of the reason some homeowners decide to go with honed counter tops as it has a classic look to it with character that tells a story about the enjoyment of the use of the kitchen’s past.
At Milbank Court in downtown Greenwich all the marble kitchen counter tops are designed with a honed finish which has been very well received by the buyers who have toured the complex. With 70% of the units sold, it’s clear the designer made the right design decision based on today's taste.
Carrera marble is one of the most economical choices within the marble family, priced around $60 per square foot. New counter tops are an easy and affordable upgrade to any kitchen or bath and Carrera marble is one of those timeless materials that will be in style when you decide to sell.
So as you look at an investment in Greenwich residential real estate, thinking about the little things can make a big difference in the quality of the time you spend there, and the price you earn when you sell.
