The Holidays are a Great Time to Sell!

Sometimes sellers decide to take their homes off the market for the holidays. This is a mistake!

Any buyers who are looking right now are very motivated. They might have just become preapproved and are anxious to get started. If your house is on the market, they will see it and your house may be the perfect one for them! Take it off the market and they will miss it.

As a seller, you can decorate your house for the holidays (but don't clutter it). Light a fire in the fireplace for ambience. Bake cookies and leave them on the counter. Play holiday music! It's a great time to sell. Sure, you're busy, but go out during a showing and look at the lights in neighborhoods, go see a movie, or go to a local coffee house for a latte or hot chocolate.

Remember that "curb appeal" is still important in the winter. Dig out the old dead annuals from the window boxes and replace them with greenery and battery operated mini-lights. Put electric candles in the windows that will come on automatically at sundown. My favorite decoration is to wrap up big moving boxes with wrapping paper, tie ribbon around the boxes -- the kind that you get in big rolls at Michael's - and place them on your front steps. Shine a spot light on the boxes and your door. Hang the wreath and you're all set! When we lived in Grand Isle, people complimented us on our oversized presents on our front steps. The scale was just right for our big house!

So, while it's hard to keep the house picked up during the holidays, do your best, because the buyers are out there, they are motivated to buy, and it just might be your house they fall in love with!

Home Inspections

We recommend that any home that is purchased go through a home inspection with a professional inspector. The cost is approximately $400 and given the cost of your investment, this is a small sum. There may be extra costs involved for additional inspections that we will discuss at the end.

A professional inspection takes about three hours depending on the size of the home. Multifamilies take longer and cost more because there are at least two "properties" to inspect. The inspector will look at the home from top to bottom, inside and out, and especially focus on the major aspects of the home: structural, mechanical, and electrical. He will also teach you about the workings of the home so you understand how to maintain your future home.

The inspector will tell you how old the roof, the furnace, and the windows are (approximately) and tell you when you might anticipate replacing those items. He will test appliances and flush toilets while running the water in the sink to see if the water pressure diminishes.

The building inspection is not designed to find small issues to use as renegotiation. It is designed to find major defects which the home owner might not know even exist. It is also designed to find safety issues such as ungrounded outlets, no GFCI outlets in the kitchen, bathroom, basement or garage.

At a recent inspection where we were representing the seller, the inspection showed a loose electrical receptacle. We thought this was a loose outlet that was not seated properly in the outlet opening. When the electrician came to repair it, he could not find a problem. The outlet was properly installed. We called the agent only to find out they were referring to the outlet cover. The screws were loose. A butter knife... a screwdriver.. or a long fingernail could have secured the screws in the outlet plate. The inspection is not designed to focus on issues like this.

Have inspections caused deals to fall through? Yes. Sometimes the issues are great and the seller is unwilling to address them or to give a concession on the sales price. We had an inspection where the furnace was at the end of its life and to replace it when it died would cost nearly $8,000. The seller said the furnace was currently in good working condition. The inspector said it could stop working at any time -- and there was only one plumbing company that worked on these particular boilers. The buyers wanted a concession. The seller said no. The contract was terminated and the sellers eventually found another buyer.

More often though, there are small repairs that need to be made and the buyer and seller find a way to make the deal work. Buyers want to buy and sellers want to sell. It is our job to find a way to bring parties together in a win-win arrangement. That is our goal and that is out usual outcome.

What other inspections need to take place? We usually recommend a radon test. Check out this link from the epa site http://www.epa.gov/radon/pubs/hmbyguid.html

If the house is on a well, we recommend water testing for potability. Rural development loans require several water tests. http://healthvermont.gov/enviro/ph_lab/water_test.aspx

If the house is on a septic system, we recommend that the system is pumped and shown to be in satisfactory condition. This is not a test that a home inspector does but can be done separately by a local septic company. http://www.epa.gov/owm/septic/pubs/homeowner_guide_long.pdf

Getting to the Closing Table

You've decided you want to buy a home -- condo, single family, multifamily -- the process is the same with some variations.

We start by searching for the right home. When that is found, we write an offer and if the price, terms and conditions are acceptable to all parties, the offer is signed and becomes a contract. We usually have a house inspection by a professional inspector and if the inspection is good, we move forward with the transaction. The contract has been sent to the bank, the bank orders an appraisal, puts together all financial information and produces a commitment to loan the money.

A few days before closing, the buyers' attorney will tell the buyers how much money to bring to the closing. This should not come as a surprise to the buyers as they will have been given a "Good Faith Estimate" by their lender at the beginning of the loan process. On the day of closing, the buyers and sellers meet at the closing table. Typically, what happens in this area of Vermont is we meet at the buyers' attorney's office. The buyers' attorney is representing the lending institution but typically acts as a representative of the buyer also. The sellers can hire their attorney to be present but the attorney is not usually there.

The attorney goes over the HUD Settlement statement with the buyers and sellers to make sure the money that is exchanging hands is correct. There is a buyers' side and a sellers' side. The bottom line on the buyers' side is the amount they have brought to closing. The bottom line for the sellers is the amount they are taking home after the closing is over.

After everyone agrees on the HUD Settlement statement, the buyers start to sign a pile of closing papers with their attorney. They will sign the note that promises to pay back the loan. There are many disclosures that the bank will provide. The buyers will also either give over a bank check for the amount they are to bring to closing unless the money has already been wired into the attorney's trust account. After all the paperwork has been signed, the sellers produce the deed to the property that has been written by the sellers' attorney. It is signed and handed over to the new buyers.

Keys are given from sellers to buyers and now we have new homeowners! The process takes about one hour barring any complications. At the end, everyone is happy (well, usually!) and we REALTORS feel great because we were able to facilitate the buyers and sellers coming together in a win-win transaction. It is really an honor to be a part of such an important part of people's lives!

Recent Rural Development Loan

We represented a buyer who bought a home in Fairfax on a Rural Development (RD) loan. She was able to finance 100% of the purchase price AND get closing costs from the sellers. Keep in mind that all negotiations are specific to a property and that a sales price is specific to what a seller will sell a house for and a buyer will pay for the house.

The buyer and seller agreed on the price, terms and conditions. We did a building inspection and there were minor repairs that needed to be done. But the house had one major problem that we knew ahead of time would come up in the appraisal. In RD loans, safety is all-important. This house had a sliding glass door to... nowhere. I mean, it was to somewhere, and that somewhere was an eight foot drop. There used to be a deck there, but now there wasn't.

We determined from the lender that if the seller put up an adequate barrier, that would suffice. The seller put up an attractive lattice barrier but it was not high enough. A carpenter put in a board at the top of the slider and screwed it in place. That door was not opening.

The bank hires an appraiser to determine the value of the house for the bank and to also evaluate the condition. He was satisfied with the sliding door repair.

What did not satisfy him was the vinyl in the kitchen that was torn and missing in areas. He did not like the leaking sink in the bathroom, and he wanted GFCI outlets in the kitchen and bathroom. He especially didn't like the peeling paint on the exterior. We understood the electrical repairs and leaky sink. The appropriate tradespeople were hired and the repairs were made. The seller reluctantly scraped and painted the outside. But the missing vinyl? The buyer was going to replace the entire floor as soon as she closed on the house, so she didn't want to spend money repairing missing vinyl.

The solution that worked for everyone was a bit ridiculous: the ripped pieces were cut out so there were missing 12x12" square areas. The completely missing areas were trimmed neatly to make open square areas. Then peel and stick 12x12" tiles were put in the missing spots. The main color of the kitchen floor was yellow so they put in yellow peel and stick tiles. Unfortunately, they ran out before finishing. So, we stuck in black tiles! Black and yellow tiles -- it looked like the Yellow Brick Road! Ugly, but the appraiser was satisfied.

In an RD loan, the appraiser is not only appraising the property for value compared to recent sales and other properties on the market, but is creating a report indicating what repairs must be done to satisfy the lender. The buyer gets a safe house and the lender knows the house has gone through stringent requirements. But sometimes the requests seem ridiculous, like covering the openings in the kitchen floor in this house.

We are happy that RD loans exist. In this case, the buyer did not have enough for an FHA downpayment which is 3.5% and she did not have sufficient cash for closing. The buyer and sellers came to agreement on price, terms and conditions that worked for everyone. The buyer is thrilled with her new home and the sellers loved that she loved the home they had owned for years.

Even if she moved in with a yellow and black kitchen floor.

Post Tropical Storm Irene Appraisals

Many properties under deposit and past the appraisal process recently had to be reappraised - a reinspection, really -- to determine that the properties were not damaged in Tropical Storm Irene. Given the pictures of Vermont devasatation in newspapers and online, it's understandable that banks would want reassurance that the properties they were about to lend money on were in good shape.

In most cases, the appraiser went back to the property and did an exterior inspection to see if the location was near a body of water and if the exterior looked to be in good condition. This did not take long but appraisers were doing inspections for many properties in addition to their current work load. In most cases, we had to delay closings until the inspection could be completed and underwriters sign off on the inspection.

With more stringent guidelines for lending in general, closings are taking longer. Underwriters are often out of state and are not aware of subtle differences in Vermont requirements vs other states. (For instance, we don't have termites in Vermont but they want to see termite inspection reports.) Buyer and sellers (and their agents) have to be patient with requests for different verifications. And recently, we've had to be patient and leave time for last minutes snags. Like flooding!

All the properties we had under deposit during the storm have closed, but we are now suggesting that closings are scheduled farther out than in the past. If we can move the closings up to earlier dates, that is much better than asking for extensions.

Should I Pack Away My Photos When Selling?

Sellers want to know whether they should remove personal photos when selling their home. Many REALTORS feel all photos should all come down because buyers want to picture themselves in the new house, not the current owners.

Here's my opinion: Leave some pictures so the buyers know it's a wonderful family, or couple or individual selling. Let buyers know a little about you through your photos. Buyers want to konw if this is a happy home and your picture can show that. But don't make your home a gallery of every photo ever taken.

When buyers walk through a home, if there are photos on the walls, photos in frames on living room tables, bedside tables, on refrigerators, etc, it's too much for a variety of reasons. One, it's distracting. We stop at every wedding picture and think, oh, what a lovely couple or worse, I don' like the color of those bridesmaid dresses! Or at each baby picture we stop and say, "what a cute baby." We see pictures of every trophy won and we try to read what it was for. We wonder whether we know the owners or their children. Basically, it disrupts the flow of the tour and we are looking at the photos and not at the home. Everyone once in awhile there is an inappropriate picture.... and being human, we make judgements. Those judgements can subconsciously transfer over to the home.

Secondly, buyers DO want to picture themselves living there and too many seller photos establish the home as the sellers' home, not their possible new home. Too much history to erase, they can't picture themselves living there, can't picture making memories of their own.

My suggestion is to keep the photos that are your absolute favorites and put them on one table in the living room or den. Pack the rest in boxes. Take a cross section of the ones that mean the most to you. The buyers will stop once and glance, get an idea of the kind of good house karma that exists through your photos, and move on to see the the rest of the house.

The bonus? You've already packed one box and are that much closer to moving!

Lead Your Buyer Through Your House by Staging Outside to Inside

If your house or condo is for sale, remember that first impressions are very important. Buyers talk about curb appeal -- they look at your house from the curb and you have about 10 seconds to make a good first impression. When they open the front door and walk in, you have another 10 seconds. Make those seconds count! You want to lead your buyers through your house with your staging.

Now that we are almost at the first day of autumn, here are some ideas.

Most houses and condos have a walkway from the drive to the front door. Put a pot of chrysanthemums on either side of the walk way. Put pumpkins and/or gourds on the steps going up to the front door and put at least one more pot of flowers. At this time of the year, you can get some inexpensive flowers at Home Depot or Lowe's. To get great flowers that are full, try Claussen's in Colchester Village.

On the door, place a wreath of autumn silk flowers.Wreaths are not too expensive at Michael's but if you are crafty at all, they are easy to make. Buy a ring of grape vines and two strands of silk leaves. Wrap the strands around the front of the grape vine wreath and secure with thin wire, or wrap them in a spiral around the wreath. Add a couple of dried seed pods that are on picks that stick into open spaces on the wreath. And voila, all done! Hang it on the door.

If you have a large house with columns, you can get corn stalks and attach them to the columns on either side of the front steps. The pumpkins can be placed at the bottom of the corn stalks. Be careful not to overdo the stalks. They can look corny (oops, no pun intended!) if you put up too many.

As your buyers walk in the door, place a small table that has a couple of chunky, fall colored candles, some more gourds and some dried corn. Have fun!

On the dining room table is another place to decorate a little. Again, small gourds or baby pumpkins, cranberry or burnt orange candles in holders, a couple of scattered silk leaves. These leaves come in a bag and nice to drop on the table. Place a bowl of candy corn for buyers to eat and put a simple sign that says, Please eat the candy!

Total investment with pumpkins, silk garlands, flowers, etc, will be less than $75 and well worth it.

Underwriting is Getting Tricky!

We have about eight sales pending and all but one have had challenges with underwriting. It's not that the underwriters are denying loans, but they ask for more and more information and substantiation before approval. Underwriters ask for banking and deposit information to assure the lender that buyers are not borrowing down payments and that there are sufficient funds to close, and then ask for the information again later. Pay checks have to show 30 days and one of our clients showed 28 days... She is paid every two weeks. 14 + 14 = 28. Not good enough.

Water tests, septic pumping, reinspection after the storm, repairs made to properties with receipts and certification of repairs. The list goes on and on and on!

What is the solution? Keep giving the loan officers what they are asking for; plan that they will ask for the same thing more than once; and plan a realistic period from contract to closing. Especially be realistic about the time it takes to get full approval from the lender. Have faith that if your lender has given the buyer a preapproval; that nothing big changes in your financial picture; that if the house/condo appraises and buyers and sellers are working together to make it a win-win, then the loan will eventually get approved. DON'T buy a car or boat or charge furniture on your credit cards!

It is frustrating for buyers and sellers, but REALTORS are here to help. We've even scraped and painted a house to get the loan approved! Hang in there and have a Plan B -- which is that the loan approval date might need an extension and the closing date might need to be moved also. In the end, you'll be able to move into a great home -- or sell a home and start a new chapter in your life.

After the Hurricane

I'm feeling really blessed these days because in Burlington, where I live, we just got some moisture in our basement in the aftermath of the hurricane. All we need is a dehumidifier to take care of the dampness. But we are seeing and hearing about such terrible destruction, that I feel very lucky that we didn't have damage.

Tonight, a friend from Waterbury said houses in the South Main area were pulled off foundations. Houses that were for sale a year ago -- houses I showed buyers -- were devastated. Water throughout the first floor, belongings now strewn on front lawns. Another family had water in the back yard, moving toward the house. In five minutes, it was on the front lawn. She grabbed her kids and in the time it took to get their coats on, the water was so high she had to carry the two of them and slog through thigh deep water!

All of our loans are going through an appraisal reinspection to make sure the hurricane did not destroy the house that banks were about to loan money on! I understand the reason why but most of our loans are closing late because of the reinspection. We are now telling buyers and sellers to expect delays.

I guess if it's a delay versus losing a house, I'll take the delay. And I am very thankful that all I have is a damp basement.

Curb Appeal on a Dime

I saw a house the other day that was a simple cape style with no dormers. Instead of the typical cape with a center door on the front, this door was on the side of the house. When you entered the yard, you saw the broad side of the house with two windows and nothing else. There were stairs on one side that brought you to the main (side) door and a small deck just before the door.

In front there were remnants of a flower garden but they were more weeds than flowers. Nothing much grew on that side of the house.

Here's what I suggested: 1. At the bottom of the stairs going to the door, put pots of chrysanthemums. Put more at the top of the stairs on the deck for a total of four. Claussens on Rte 2A in Colchester Village has great chrysthanemums every year.2. Edge the garden in front of the house and get hostas from neighbors -- everyone has hostas to share at this time of the year. Plant hostas in the front of the house and mulch the heck out of the area around the plants. Mulch anywhere they want to create more beds. 3. Then put window boxes under the two windows and fill them with annuals -- over plant because there isn't much time left before a frost so they won't grow.

Cost:
Chrysanthemums: About $60
Window Boxes: He can make out of scrap lumber so they are free
Flowers for window boxes: Go to Lowe's and buy annuals on sale: $15
Mulch: $50
Hostas: Free
Total: $125
What will the return be? This small investment could mean the difference of someone wanting to buy the house or not!

Easy to turn a plain Jane house into a fabulous house with a little money and imagination!

Walk Through Before Closing

The standard Vermont Purchase and Sale contract allows for buyers to do a walk through of the property they are buying within 24 hours of closing. What happens at the walk through?

First, the contract calls for the house to be broom clean and free of occupants and personal property. So, that is the first thing to check for. If there is stuff in the house, we'll call the other agent to see what the seller's plan is to remove the belongings. We might give them a little time to come back to get their things, or at closing, money can be put aside to insure the belongings are moved.

If any work needed to be done for the contract, we confirm that it has been completed. We check appliances to make sure they are working. We flush toilets, run water in the sinks and showers, and make sure there are no leaks. We turn on the heat and make sure there is hot water.

Strange stories in walk throughs: The refrigerator didn't work and it was full of food. Yuck. The garage was full of paint cans that were supposed to be moved. They had to come get them. A box of vinyl siding that was to be left was removed. The sellers brought it back. The electricity had been shut off prematurely and so the house was not cleaned. The sellers were charged for cleaning fees.


The walk through is the final opportunity to see the property you are going to buy and make sure everything is working. If the refrigerator breaks after closing, you have a broken refrigerator. That's why we check to make sure before closing!

Referrals Through Real Estate

One of the benefits of being in real estate is finding trades people to refer to clients and customers. I am currently looking for a good sheet rocker and put out a voice mail in our office and received two names. I also called a contractor I used in Grand Isle and he gave me a third name. I have painters, plumbers, electricians, fine carpenters, rug layers and general contractors. It is great to be able to refer clients to trusted trades people.

In addition, I enjoy using clients and customers for jobs or services. I have a great stock broker who has referred me to many buyers and sellers. I love giving his name out. I have given out the name of a good chimney mason who does great work lining chimneys and fixing problems with crumbling bricks. He referred me to his sister when she was selling her house. I have a local carpet store that I work with all the time. One of my friends and clients does decorative painting. The list goes on.

These people will practically drop what they are doing and find time to help a client of mine or to help me. They know they receive a lot of referrals from me and I know they do great work. We are mutually loyal to one another!

Would you like names? Just let me know. And please send me the names of people you have used. It's always better to have a personal referral. It's a great benefit to my clients and customers.

To Landlord or Not to Landlord

We bought a duplex in St. Albans in 2005 for $155,000. It seemed like a good idea -- buy a house that needed a lot of work, buy it at a low price, fix it up and rent it. We put in $15,000 in the first few months, rented it and made a positive cash flow of about $300 each month.

The house was in rough shape but not terrible. When we bought it, there was a goat in the living room. Yes, a goat. When the goat was gone, we refinished the wood floors, painted walls, fixed holes in the plaster, and put in new carpet.

With each changeover of tenants, we had to go in and do varying amounts of work. One set of tenants left the apartment so disgusting, we had to rip up all the carpet and put down new, put new floors in the bathrooms, and hire someone to clean it for about 8 hours.

One set of tenants stopped paying and we had to go to court to evict them. We lost $3,000 in rent and legal fees, not to mention a lot of sleep. It was very scary because I built the situation up to being a horror movie in my mind and thought the tenants would come kill me! Dramatic, I know, but I had no other experience and so my mind went to a dark place.

The last tenants did $1100 in damages with a $750.00 damage deposit. Worse, the police came to the apartment often, my neighbor called constantly complaining about the noise, and the fire department came for an oil fire that happened by accident.

I thought this duplex would be a great investment but real estate in St. Albans has gone down . We would break even on the price we paid but not for all that we have invested in repairs and updates. Plus, we have to get new tenants nearly every year. This is taxing and expensive.

Would I do it over again? No, I wouldn't. I don't think I have the personality anymore for being a landlord. I don't know how people who own multiple properties do it.

So, as soon as the market recovers in St. Albans, we're putting a for sale sign up!

Life Long Friends Through Real Estate

I first met Joe and Cheryl when I helped them find a home in Vermont. We had lots of lunches together and enjoyed seeing houses until we eventually found the perfect home. We just clicked. And we became friends.

I met one of their daughters, Jessica, during the house buying process. I loved her wise cracking personality and her love of life! Then I found out she was in recovery from breast cancer that she discovered at 21. When she found out she had cancer, she was an undergraduate at UNH and went through chemo and radiation and then graduated in the nursing department.

Jess became a nurse at Fletcher Allen in Burlington, ran a marathon to show she had beaten cancer, and married Riley. She and Riley enrolled in Nurse Anesthetist School in Maine. Then her cancer came back.

This past Saturday, July 23, I ran in the Susan G. Komen Race for the Cure in Manchester, VT. This race encourages participants to raise money to help cure breast cancer. This was the 8th year I participated. Last year, I ran in honor of Jessica. This year I raced in memory of Jessica. She passed away last November at 26.

In real estate we sometimes have relationships that are only professional. We help people buy or sell homes. And sometimes we become friends and they let us into their lives and we in ours. Cheryl and Joe will always be my friends.

This is why I love what I do every day.

The "I gotta have it" Factor

Most buyers want a market analysis to determine the value of the house they want to buy. The analysis looks at similar sold properties and properties that are actively for sale or pending sale. We adjust for square footage, number of bedrooms and baths, size of the lot, condition of the property and more. Sometimes the property is priced just right, sometimes it is underpriced (really!) and sometimes -- much of the time -- it is overpriced.

We bought a slightly overpriced house because we fell in love with it, were going to live here for many years to come, were buying in a down market, and saw the opportunity ahead of us to make a profit in the future. The other reason? I said "I gotta have it!"

When we walked in the front door, we knew this was the one. The house had great character from the warm color of the aged hardwood floors, to the fir woodwork, glass door knobs, and wainscoting. We bought the house and are still living in it. We LOVE it!

We understand that most buyers do not want to overpay for a house, and your mortgage company wants to loan you money on the value of the house. But if you are not sure if the house is worth the asking price but you "gotta have it", let the appraiser determine the value. Awhile ago, appraisals seemed to come in exactly at the purchase price, but not so much anymore. Appraisers have to justfy their appraised value to the banks. Then the underwriters get a chance to review the appraisal. Usually, if an appraisal comes in lower than the purchase price, the sellers will lower the sales price to meet the appraised value.

So, get a market analysis, discuss comparables with your REALTOR, and decide on the price that works FOR YOU. If there is an "I gotta have it" factor, so be it.

2010 vs 2011 -- The First Six Months

We have been busy in 2011 and our sense has been that the market is improving. But until we actually ran the numbers and compared average and median home sales prices from year to year, we had no confirmation.

Good news! The average and median prices for both single family homes and condos has gone up when comparing the period of January to June of 2010 to the same period in 2011. This data is taken from the Multiple Listing Service.

In 2011, the average sales price for a single family home in Chittenden County was up from $304, 229 in 2010 to $315,156 in 2011. This represents a 3.5% increase. The median price was up also, from $267,250 to $275,000 in 2011, or a 3% increase. Condo prices were up 2% on average and the median sales price was up 1.2%.

Days on market increased slightly in single family home sales from 94 average days on market in 2010 to 102 in 2011. Selling condos took significantly longer in 2011 -- 103 days compared to 79 days in 2010. It is important to remember that the tax incentive for first time buyers was in effect in 2010 and people were scrambling to make the buying deadline. Although the average and median prices increased in 2011, there was a decrease in number of sales compared to 2010, but that could possibly be attributed to the tax incentive.

There is also good news for Grand Isle County. Average sales price is up a whopping 14% from $247,356 in 2010 to $288, 459 in 2011. Median price is up 8.5% from $215,000 in 2010 to $234,900 in 2011. Interestingly, the average days on market increased significantly. It took 130 days average in 2010 and 185 in 2011. Of note is that the data is taken from 33 sales in 2010 and 37 sales in 2011. In 2006, there were 50 sales during the first six months and the number diminished through 2009. Currently, there are 199 homes listed in Grand Isle County, priced between $39,900 and $3,900,000!

For our friends in Franklin County, we looked at the following towns: Fairfax, Georgia, Highgate, St. Albans town and city, and Swanton. The average price was up 4% and the median was up 5%.

All in all, we are feeling good about the market. Sellers still need to pay close attention to pricing and have property showing ready. We say, "It's a price war and a beauty contest!" Buyers have many properties to choose from so it is important for property to look its best.

"Spider Tai Chi" in Old Basements

First of all, I've lived in old houses most of my life. I live in a 1927 house in Burlington right now and it has its faults but I love it just the same. This was a record wet spring in 2011 and in our basement, we had riverlets of water running from the back wall to a depression in the floor on the front wall. We pumped it out, ran a dehumidifier, and mopped the floor. That's just the way it was. And we accept that. We want our buyers to go into a house with eyes wide open too.

We see a lot of basements. Frankly, I think in an old house, it might make sense to go straight to the basement. Our buyers can fall in love with an old house and all its charm, details, nooks and crannies, and then the basement sinks the deal. So, why not find out up front? But this is not the way buyers want to see the house, looking at the ugly aspects first. So, we go all around the first floor and then to the second, all ooh-ing and ahh-ing.

Then it's time for the basement.

Here's how it can go with any one or all of the following scenarios: We open the basement door and we are hit with a musty smell. We crinkle our noses anticipating what we are going to find. "Smells wet," the buyer says. We cautiously go down stairs that are at an angle and have no railing to hold onto. The basement is dirt and muddy. Or there is a concrete floor and standing water. The foundation is stone and stones are falling out with crumbling mortar. There are signs of dry rot. We walk into a seldom used area and walk straight into a face full of spider webs. Yuck!

Here's how I deal with the spider/cob webs because I really hate getting them in my face. I take my hands and I wave them in front of my face. I "wave hands like clouds" as if I am doing Tai Chi but I do the waving in front of my face as I walk forward, not sideways like the Tai Chi movement. My clients think it is hysterical. I call it Spider Tai Chi. And it works. I actually prefer to do it with a file folder or paper in my hand as that catches the spider webs and not my hands. Cobwebs can be removed, but it sure gives us a creepy feeling when we walk into an invisible wall of them!

I love old houses, but I do not like old houses with wet basements, dry rot, standing water, or spider webs that wrap around my face when I walk through them!

Sellers -- check your basements for spider webs. Here's how to get rid of them: Take a broom and cover the bristle end with panty hose after cutting off the legs. Brush the broom around the basement ceiling, walls, and into what may appear like empty space. Then fold the panty hose over itself and take it off the broom and throw the hose away.

Buyers -- try to see past the spider webs and look at the most important parts of a basement: structure, electrical, plumbing and heating,and dryness. Your inspector will give you a good evaluation of the systems and structure if you choose to buy the house. Don't let the spider webs discourage you.

And check out the internet for Wave Hands Like Clouds -- spider Tai Chi works!

Seeing Old Clients -- Competitive Water Skier!

I love seeing old clients in social occasions.

In a client relationship, we look for houses or condos, sometimes for months, and our experience is built around buying a new home. We crunch numbers, look in damp corners of basements and the tops of hot attics, check out wells and septic systems, and put in offers to buy. We often get a lunch or two out, but our relationship is business. We often find out important personal details of their lives, but not always, since we are focusing on buying a home. Don't get me wrong -- we have lots of fun -- but we are assisting people in the largest investment of their lives, so we must always retain a professional relationship first.

After the home is purchased, we stay in touch with emails, letters and calls. But occasionally, we get to see our clients at parties and other social events. And we often find out interesting facts that we didn't know when selling them a home.

Last night we saw our clients Susyn and Denis at a party. They bought their home in Essex five years ago. Over the years we've talked about improvements to their home, gardens planted, rooms painted. They love their home and it was a great move. Then last night I found out that Susyn was a competitive water skiier! Not only did she compete, she competed in pyramid skiing! Yes, she climbed on the legs and then shoulders of her brother and father and skied around the lake! She can do trick skiing too -- spinning around in circles while on skis or on one ski. Wow! What a great fact to learn about a client. It brings us closer together because now we know more about Susayn and we can enjoy our relationship in a brand new dimension!

This is what I love about real estate. It is a business, yes, but it is an opportunity to make new, life long relationships. And every once in a while, find out that a client was a competitive water skiier!

Water in the basement? I'm Grateful.

Today there was a terrible downpour with a scary dark sky and lightning. All the time we were driving through the rain, I wondered if our basement was getting wet again. But then I realized I have a home and it is for the most part dry. The poor people living by the lake have been dealing with waves splashing against their homes (I saw this in Alburgh) and mold growing on sheetrock. This has been going on for months. So if I have a wet basement, I'll cope. The important items are up high. I'm grateful that it's just a wet basement.

Floor Plan Thoughts

I showed a property today that was a hillside ranch. The first floor was open and spacious with a master bedroom and fabulous bath with tiled floor, jacuzzi style tub and tiled shower. The problem was that the other bedrooms and full bath were on the lower level. Not only were they on the lower level, you had to walk through the living room, kitchen and hallway to get to the door to the lower level! This is a great floor plan for people who want their guests or teenage children far away, but not so great if someone has small children.

It made me think that when building a house, builders and designers should make the floor plan as flexible as they can for as many different household configurations. Masters on the main floor are very popular but I think there should always be the potential for a really nice master on the other floor also. Makes for more options.

For the same reason, having a bedroom on a third floor makes for a difficult floor plan unless it is for teens and guests. It's hard to think of all scenarios when designing a house, but be sure to ask your REALTOR about floor plans that sell.

Curb Appeal Made Simple -- or Complicated!

Here's the complicated way to create curb appeal:

I love my little cottage-style house in Burlington, VT. One of the reasons we left Grand Isle was the size of the property we had to take care of. We had 1.5 acres in Grand Isle and now .09 acres in Burlington. Not a misprint. It is really small.

I wanted to have as many flowers as I could on this property and make a good first impression to people visiting. First, we cut down the huge crabapple in the front yard that hid the beautiful lines of the house. ( I hated rolling around on the apples) Then all the scrubby bushes that hid the house were dug out. We rototilled all the grass and removed the turf. Then we dumped compost onto the front yard. A contractor installed a white picket fence and an arbor to walk through.

Then I planted the heck out of the yard.

Pathways meander through the small front yard and pass an herb garden. The path has creeping thyme growing between each bluestone step. Roses climb over the arbor and along the picket fence. there is a butterfly garden with bee balm, butterfly bush, and milk weed. Close to the house we planted a tree hydrangea, a bush hydrangea, and a variety of other interesting shrubs.

How did I do this on a budget? I asked everyone I knew to give me plants. Gardeners are happy to share and they always have to split their plants. I received an enormous number from my friend Marcia who lives in Jericho, VT. She has an acre of gardens and has many unusual species. She amazes me -- she knows the Latin names of flowers as well as the common names. She also knows to plant in odd numbers of three or more. So she gave me three of everything. I also bought flowers at Lowe's. The prices are low (no pun intended!) and easy on the budget.

Plant close together the first year as the garden will look full. You can share with others at year three. That's what I am doing now.

That is the complicated version of curb appeal.

The simple version? Put pots of geraniums lining either side of your walk way and more pots of annuals going up the stairs to the front door. Add hanging pots of annuals -- as big and full as you can find them -- from hooks by the front door. On either side of the front steps, plant some big, showy annuals. And then as soon as chrysanthemums are in the store, substitute the biggest ones you can find. If the front yard is large, put a nice chair under a tree and place a little table next to it. You can find these at a yard sale. Set this up as a little reading area.

The flowers will lead the buyer to the door and the chair and table under a tree will make them feel this is home. Think flowers, flowers, flowers! There can never be too many flowers!

Easy version or complicated? You decide!

I Cried When I Didn't Get the House I Wanted

In 1982 when I heard we lost the house we wanted in Marshfield, MA, I threw myself on my bed and - I hate to admit it - pounded my fists into the mattress and kicked my feet up and down. I really did.

After looking at 25 houses, we finally decided on a house to buy, a yellow raised ranch with a lovely back yard. Then the agent called us with bad news. Someone just put in an offer that was accepted.

I was pregnant with our second child and my nesting instinct was very strong. I needed a place to bring my baby home to and *sob, sob* I wanted that house!

The next day, the owners of a house we REALLY wanted but decided was too expensive, called to say they would give us an interest free second mortgage for $10,000 due and payable in three years. (That was being done in 1982 when interest rates were 11%!) My father did a quick calculation, told us what that meant in dollars saved, and we accepted! I loved that house much more than the one we just lost. "It was meant to be," I told Dave, who didn't believe in that kind of 'hocus pocus'.

Years later, we wanted to buy a special house in Grand Isle, Vermont. The house was brick, built in 1845, and was on the Vermont Historic Registry. It had 400' of shared lake frontage with killer western views. It was a huge house with decks overlooking the lake, an enormous kitchen, two fireplaces and a paneled library. We were in love with this house. This was the house I would live in for the rest of my life, I said.

Our agent wrote up an offer and called the listing agent with the details. Our agent's face dropped and we knew it was bad news. Someone had put an offer in the day before and it was accepted! Not again, I cried. And cried and cried. We tried to find another house but could not. We decided to stay put.

Then, we heard through the grapevine that the buyers of the brick house had a contingeny of selling their house first, and they hadn't sold it yet. We put our house back on the market. When the buyers' of the brick house's contingency expired, we bought it!

"It was meant to be!" I told Dave. He was starting to believe.

We lived there for 9 years and it will always be my favorite house. But it started to feel too big and the grounds were getting harder to take care of. We sold the house to Karl Lagerfeld of Chanel, to his real estate holding company. The rest of that story will come later!

Now, the story about our present house that we bought when we sold the brick house. We learned our lessons with the house lost in Marshfield and the better one found; with the house in Grand Isle that came back to us. So when we found the perfect house in Burlington, VT and we hadn't sold the Grand Isle house yet, we were sure someone else would snatch it up. And someone did. We said, "Well, it just wasn't meant to be!" We accepted it and were sure a better house was waiting for us. Then, six weeks later, the listing agent called to say the buyer's financing fell apart and the house was coming back on the market. Enter Karl Lagerfeld. We had a contract on our house, we put an offer in on the house in Burlington, and we've been here three years. It was meant to be!

Now, when buyers are upset, throwing their bodies on the bed and pounding fists and feet -- okay, no one has done that but me -- I tell them these stories and assure them that a better house will come along. It has for us -- three times -- and it will for them too.

Our story of a Fixer Upper

We bought a fixer upper in 2005 when the market was hot and we were gung-ho to buy an investment property. It was a duplex apartment building with good rents.

I first showed it to some clients who said it was way too much work for them to fix up. The linoleum floors in the bedrooms (not vinyl, but old sheet linoleum) were rolling on the edges and the space between the linoleum and the wall was full of dog hair, cat hair and general filth. One bathroom had a claw foot tub and an old toilet. The floor was a repeat of the bedroom floors but with bathroom filth added to the mix. There were dirty diapers and old pizza boxes on the kitchen table. You get the picture.

We saw potential in the hardwood and softwood floors, in the new roof and new boilers, and in the deep yard. The price was low in a hot market. If we sunk $15,000 in carpets, paint, bathroom updates, we thought it was a good investment.

When we walked into the inspection, the same dirty diapers that that were there the week before were still sitting on the kitchen table. So, no cleaning up for the inpsection. There was a new resident who hadn't vacated for the inspection -- a baby goat! It was bleeting sadly, huddled in a wire cage in the living room. Whenever I left the room to follow the inspector, the goat cried. "I'll sit with the goat," I told the inspector, "tell me when you need me." Luckily, the goat was gone at closing.

In the past six years, we've added refrigerators, jacked up one floor that sagged, upgraded the knob and tube electrical circuits, refinished the floors, put in new kitchen floors, new carpets, new shower, and an assortment of other repairs and additions. New, wonderful tenants have removed layers of wallpaper and have painted all the rooms. The house is being treated well.
Did I mention we hired everything out because we are not handy? Well, we can paint, but that's about it.

Over the years, we've invested about $30,000. We have a small cash flow every month. And I mean small. Until our current tenants, we've had problems even though we've vetted the tenants carefully. If we sold the place today, we wouldn't break even. And we haven't had a lot of fun!

Of note is the fact that we have a write-off on our taxes because of depreciation and repairs. We'll be seeking accounting advice when it comes time to sell.

Was it worth it? We'll see in about five years when Franklin County, Vermont has recovered more from the housing decline.

Personally, I think the best buyer of a Fixer Upper is someone who can personally fix it up. Or someone who has enough cash to pay someone else to fix it up. And, most importantly, buy it at a price that makes it a good investment.

Buyers Gather Information from Satellite Photos

Greg and Jess know what they want in a house and have been looking for about two months. They want a yard - but not too big - and they want a nice setting. They have to think of resale down the road, so they know location is key. We looked at a house yesterday in Franklin county.

"There's pasture behind this house," Greg said.

I looked out the back yard and all I saw were trees and more trees.

"I looked at the satellite picture," he added.

So much information is available today that was not available just a few years ago. Buyers view satellite photos of houses and check out the surrounding properties before even making an appointment to see a home.

"We were interested in one house," Jess said, "and when we looked at the satellite picture, there was a junk yard behind the house and junk on either side." Needless to say, they didn't add that house to their "favorites." It saved us all time by checking the satellite photos.

Buyers can "google" an address and see if there are any issues that come up. I once had a buyer search an address and it was near a Super Fund clean up site. Buyers are savvy and will use technology to help them.

Google maps are a great way to "walk down a street" and see what is around the house you are interested in. Not all streets have been mapped, but many have. You can get a street view of your potential house and decide if it's the neighborhood for you. Remember, your walking tour is not always from recent photos, but it's a good tool.

So, Jess, Greg and I won't have to get on our hiking boots and spray ourselves with insect repellent to find out what is on the other side of the trees. We can lean back in our chairs at our desks and see lovely pastures!

Finding a home is a Team Effort

All buyers have different styles for searching. For some of my buyers, they want me to call them as soon as a new house comes on the market. So, every morning, I check the new listings, search for sale by owner sites, and listen to voice mails from office REALTORS to determine if there are new office listings. Then I call with a description.

These same buyers ask me to drive around certain neighborhoods that they've targeted, in case a "For Sale by Owner" sign or an office exclusive listing pops up. I also check the newspaper for ads. I once helped clients who wanted Burlington south end, exclusively, look for about nine months. One Sunday, I looked at the real estate section and found a For Sale by Owner advertised. I called the seller up, we went to see the house, and we wrote up an offer. After nine months of looking, we all knew it was the perfect house for them.

Other buyers want to be placed on an automatic email service of new listings so as soon as new homes come on the market, the listing shoots into their email with photos and details. The address is there so the buyers can drive by. The computer savvy ones just put the address into Google, choose the street view and voila (a scary voila) they can see the house on street view. There is a little Google man that can be placed on the street and with the drag of the mouse or the press of an arrow, he walks down the street. Wow! I practically expect someone to walk out the door and get the morning paper, but trust me, this is not a live feed!

The best combination is team work. Most of my buyers these days search the internet constantly. And I mean constantly. Employers beware, if the monitor is facing away from your watchful eyes, your employee searching for a house is possibly on Realtor.com or even better, on Ericsonteam.com! As soon as a new listing comes on, they see it. Here's the conversation: "Karin, a house just came on in Burlington on XYZ Street. I saw the pictures and it looks great. When can we go see it?"

"Let me open my MLS," I say, "and see what it looks like." I access my MLS, and there it is, sometimes 1 day on the market. "I just checked 30 minutes ago," I say, "and it wasn't there."

"I checked five minutes ago." they say, "and it wasn't there, but now it is."

We go see it at lunch and it's perfect. We're the first ones in. And since they've been looking for awhile and have compared houses and prices, they know if the asking price is fair.

Sometimes I see the perfect house, sometimes my buyers see the perfect house. It's all about style and results. It's team work!

HGTV Generation

I love my 25 to 35 buyers and sellers. Not that I don't love all my buyers and sellers, but in this age group, I call them the "HGTV Generation". You know the shows I'm talking about: Property Virgins, Design on a Dime, House Hunters. They watch the shows, absorb the ideas, discuss what they would do differently.

As buyers, when we walk up to the property, they first talk about curb appeal. "They should totally put flowers on hooks out front and weed in between these stones. The front door needs to be painted and that shutter is crooked." We walk into the front door and living room. "This is so cluttered. They should have put away half these books. The fireplace is the focal point. They should have arranged their furniture around the fireplace. And all they had to do was put on a coat of new paint to make this room pop!" I don't have to say a thing. They are reading my mind.


They look at cluttered closets, they comment that all the counters in the kitchen are nicely cleaned off, they love the stainless steel appliances. "And look," they add, "they went the extra mile and put on all the lights and have soft music playing."


When Sellers bring me over for the first look at their home, they give me a tour and if the planned work is not done already, they tell me what they are going to do. Take Shana and Neal who got a contract on their condo in South Burlington in 13 days. When I walked in, their kitchen walls were a great brick orange, formica front cabinets with oak horizontal trim on the bottom, were painted a striking black. The hood over the stove was painted black with special auto paint, the counter tops were replaced, and the floors had great peel and stick vinyl that looked like tile. They had new black appliances. The kitchen was totally modern looking even though the condo was built in the 80's. The living room had new carpet and the walls were sage green -- two walls one green and two a slightly different green to create interest.


"I'm going to change all the lights to brushed nickel," Shana said, "and we're changing the door knobs too. We're taking out this large sectional and borrowing and buying some furniture that doesn't make the room look so crowded. We'll put a couple of artsy things on the book case over here, flowers on the table. I'll set the deck up with lawn furniture and set the table to let people know this is a great place to eat in the summer. Anything else we should do?"


There was nothing for me to say! She hit it all. Upstairs it was the same. She suggested we stage the office to look like a bedroom so people know its function. There would still be an office area in that room but it would primarily show as a bedroom. They bought a new bedspread and window treatments for the bedroom -- black and white with red accent pillows. There were black IKEA styled shelves on the walls with red art objects. In the bathroom, they found a product to coat the inside of the sink and with changed faucets, it looked new!

A buyer walked in, said this was where she had to live, and paid full price!


New carpet... new appliances... modern colors... design changes without much cost to the sellers... decluttering... correct furniture proportions... creating a mood... staging the inside and outside...

I love the HGTV generation!

New Beginnings -- Real Estate and Discipline

We all set goals. The question is whether we meet them. It's easy to make a long "to do" list but the challenge is actually doing the items on the list.

At The Ericson Team at RE/MAX North Professionals, we are great at brainstorming creative ideas. And we're great at follow through -- if we say we're going to do something, you can count on us. Trouble is, we want to do so much! And the balance of work and personal time is difficult but crucial. Because if we can't create balance, everyone suffers.

We work with Kim DuBrul as our business coach, which means we have someone we are accountable to. This is important to us because it helps us live on purpose both in our real estate business and in our personal lives. They are often too closely entwined, and quite frankly, the real estate can take over. So, our coach has us set goals, check in with her when we meet those goals, and continually work to improve ourselves and our business model.

This creates a benefit to our buyers and sellers also. We focus on what their needs are and set aside specific times to work on marketing, on ways to better present properties for sale, and on market analyses for properties our clients are selling or buying. We make calls to people who we think might like a property we have for sale and we call back agents who have brought buyers to our properites. If we stay on task, we have time for ourselves personally.

What is #1 for Karin today? Getting up early and practicing discipline. To start, I looked again at the video by Robin Sharma http://youtu.be/z6hsOLVwFc
I also put aside time this morning to write. It's a passion that has been relegated to "if I have time" status. Not okay anymore. Funny that the day after the longest day of the year is the day I decided to start getting up early. I am a night owl, so it's hard for me to change a lifetime of habits, but one day at a time, I'm going to do it. It's about discipline. If I really focus on my goals and discipline myself, anything is possible.

The more I discipline myself personally, the more work I get done because I schedule activities instead of activities scheduling me. I stay on task.

And our clients and customers benefit from extra time we can focus on their needs. Win-win has always been the best outcome.