Boston Real Estate Observer

5 Simple Boston Home Staging Tips

2010-09-04T14:05:49Z

When it comes to getting your home sold, you need to do everything possible to set it apart from other homes that are on the market. Furthermore, you need to present your home in the best light possible, which means adding a few extra touches that will make your home more appealing to potential buyers. This process of creating a more appealing home is known as staging and here are 5 simple things you can do to help your home sell.

Home Staging Tip #1: Create Curb Appeal

The first time a potential buyer drives by or up to your home, you want it to leave a good impression. Therefore, you should take steps to make the exterior of your home stand out and look great. To do this, you might need to make a few minor repairs, such as applying a fresh coat of paint if the current paint has become faded or chipped or repainting the shutters, door and trim to create a neutral color scheme. You should also remove any clutter from your driveway and yard while also making certain the lawn is neatly mowed and edged. Adding fresh mulch to your flower beds and placing some potted plants outside of your front door will also make your home seem more inviting.

Home Staging Tip #2: Make the Entryway Welcoming

Your entryway, which is the area the potential buyer will first see when opening the door to your house, will also play a strong part in creating a first impression. Therefore, care should be taken to make certain it is both attractive and inviting. To accomplish this goal, you should keep the entryway free of clutter while also making certain it is well-lit. This way, your home will appear larger while also feeling warm and inviting.

Home Staging Tip #3: Depersonalize the Space

Personal knick-knacks and portraits scattered throughout the house make it difficult for potential buyers to visualize anyone other than you living in the home. Remember, you want the buyer to be able to picture him or herself living in the home, so you should remove those personal touches before your Realtor takes the buyer for a tour of the home. In addition to removing personal belongings, you should also paint walls with a neutral color so the buyer can more easily envision the colors that he or she might like.

Home Staging Tip #4: Update and Upgrade

Spending a little money in order to upgrade or update parts of your home, particularly your kitchen and bathrooms, is always a good idea. If your cabinets are outdated, simply purchasing modern knobs and handles can go a long way toward making your home more attractive to potential buyers. Similarly, upgrading to a water-efficient faucet will appeal to today’s eco-friendly buyers.

Home Staging Tip #5: Create a Comfortable Space

As part of the staging process, you want to make every room in the house appears as comfortable as possible. You can accomplish this by limiting the amount of furniture placed in rooms such as the living room and bedrooms while also arranging the furniture in a way that is easy to walk around and is conducive to conversation.

John C. Allen is the broker of Allen Real Estate Services, Inc., a 30 year Sarasota real estate brokerage. He represents buyers and sellers of fine residential real estate including downtown Sarasota condos, luxury properties and waterfront homes.

W Hotel Boston Foreclosure

2010-09-04T14:18:54Z

“The debtor has demonstrated no ability to mount a fresh sales campaign to rehabilitate its business or otherwise reorganize nor does it have any prospects for such reorganization on the horizon.”

Those are the words of Prudential Insurance Co., the main debt holder of the W Boston, and foreshadow their desire to foreclose on the Boston W Hotel and the developer behind it SW Boston Hotel Venture LLC, doing business as Sawyer Enterprises.

Sales velocity at the now-bankrupt W Boston has been slow, a trait not uncommon to other new luxury condo developments that were delivered during the US’ great recession (see Ultra Luxury Condo Sales Velocity Low). Prudential has been unimpressed, to say the least, with what Sawyer is doing about that trend.

Sawyer’s idea of renting out units in the high-end development located in the Theatre District of Boston appears to be laughable by Prudential. Much like the rough stigma of the neighborhood itself, which has arguably gotten better since the W broke ground, Prudential doesn’t want a transient rental base to taint a fresh product, leaving it difficult to ultimately sell.

Prudential Wants Their Money Back from Boston W

All of this foreshadows the ultimate goal of Prudential, which simply put, is to get their money back. Renting out a select set of units in the building may provide short term cash flow, but does little if anything to bolster Sawyer’s ability to make its balloon payment, and some would say, would ultimately detract from it.

Inevitably, if a significant cash infusion does not come quickly, the public is going to see another Boston condo auction. Should Prudential take back the deed to this property, they’ll have no desire to hold it, and will attempt to liquidate as quickly as possible. The few current owners in the building will, unfortunately, be stuck in the same position that those at Nouvelle at Natick have faced since they originally bought at high price per square foot values, only to see that price significantly diminished by an auction that was forced in the wake of the property developer’s bankruptcy proceedings.

Where is Otis & Ahearn in all of this? O&A being the exclusive sales and marketing firm that is responsible for selling the W Boston units into the market. They have had a relatively unblemished track record of selling out buildings across the downtown market, including a complete sell out of 285 Columbus Lofts, a development that sits on the border between the South End and the Back Bay, in quick order. Undoubtedly, if they continue on point with the project, buyers will see creative and fresh approaches to speeding up sales velocity.

City of Boston’s $10.5 Million Loan to Boston W Hotel

The City of Boston infused $10.5 million into the project during 2009 to ease completion, and almost regardless of where they stand in the debt stack where there are different classes of debt, called tranches, that public money will take a long time to return home. However, there’s little debate that bringing the structure to market that replaced the former parking lot and hole in the ground, and new jobs, was a positive addition to the city of Boston, and depending on how the debt repayment goes, a good investment.

First Time Boston Homebuyer Tips

2010-08-29T14:35:04Z

Are you considering purchasing a Boston area home for the first time? If so, you are probably both excited and nervous about your decision. After all, purchasing a home is a major transaction and you are getting ready to embark upon a major change in your life. To ensure the process goes as smoothly as possible and to make certain you are making a sound financial decision, it is important to keep a few tips in mind when purchasing your first home.

Tip #1: Know What to Expect

Before you contact a Boston real estate agent, it is a good idea to get a clearer picture of how much home you should expect to get at what price, and how the buying process works. While your real estate agent will certainly help guide you through this process, the better prepared you are beforehand, the easier it will be for you to work with your agent. To get a general idea of what you can expect to pay for a home in your area, visit Websites such as Zillow.com and Homegain.com.

Tip #2: Determine What You Can Afford

It is also in your best interest to have a good idea of what you can afford to pay for a home. In this way, you can give your agent an idea of the price range of homes to look at. To help get a better idea of how much you can afford to spend on a home, you might want to use one of the many mortgage calculators that are available on the Internet. Also, keep in mind that Fannie Mae recommends spending no more than 28% of your gross income on your housing costs. You can follow this up by speaking with a mortgage broker, a resource that can provide significantly more detailed information about the lower and upper bands of home prices you should be considering.

Tip #3: Decide What You Are Looking for in a Home

By assessing your current and future needs, you will be better able to determine the type of house and features you are looking for. The better you communicate these needs to your real estate agent, the better he or she will be able to narrow down your options to those that are the most likely to suit your needs.

Tip #4: Don’t Be Afraid to Negotiate

One of the benefits of working with a real estate agent is that he or she should have great negotiating skills. Don’t be afraid to speak up about what you want from the transaction, including extras such as having the furniture included in the price or having the seller pick up the cost of certain inspections and repairs. The more you communicate your desires to your Boston agent, the better prepared he or she will be to negotiate a great deal on your behalf. Bear in mind that almost everything is negotiable in real estate, including inspection items that come up during the standard inspection process.

About the Author: Brian Kinkade is a broker and team lead with Brokers Guild – Cherry Creek Ltd, one of Denver’s fastest growing full service Denver real estate firm. Brian’s team of Internet savvy agents service the Denver Metro area while specializing in Denver luxury homes, Colorado horse property and International sales. They invite you to visit their advanced real estate website today to search for homes, gather local information, and learn about Denver neighborhoods. Brian and his team are standing by and ready to assist with your home purchase, property sale or relocation needs.

Renting Rooms to Stop Foreclosure

2010-08-27T12:45:08Z

Are you among the many people trying to figure out a way to pay their mortgage and stop foreclosure? Across the country, times aren’t easy right now and more people than ever are losing jobs, leading to other financial problems like keeping up on house payments. Everywhere you look there are companies offering to stop foreclosure. Before you resort to using specialty foreclosure help services, consider some of the other options out there. One option gaining popularity that can be done without the help of third party servicers is renting a room and flipping that income directly into a mortgage payment.

If this sounds like something you’d be interested in, you have to make sure you plan accordingly and do your research. Consider first that you may be able to refinance to better fit your payments to your current situation – with mortgage rates at extreme lows right now, this may be a very realistic option for many, but admittedly harder for those where home values have dropped significantly. If refinancing isn’t a viable option, and renting a room seems like the solution, here are some things to do before you start placing your ads to find a renter.

Is it Legal?
If you own your own single-family home then this probably doesn’t apply to you. But if you’re buying an apartment, condo, duplex or other kind of home that has multiple tenants then you should check with your homeowner’s association (HOA) to see if it’s ok to rent a room for extra income. There may be stipulations in the rules and regulations of your condominium association that preclude you from renting, or preclude leases that are under a certain duration – increasing the number of residents in a building or unit could be considered by some to detract from the quality of life available in the building, one of the many reasons residents pay HOA fees to regulate such situations.

Insurance & Taxes
Parts of your home owners insurance policy may have rules about having extra tenants in the home. Before you rent out a room, make sure that you’re covered. If you go against the terms of your policy, even if done in innocent error, you could up with a canceled policy. In addition, you’ll have to inform the IRS about the extra income you receive from your tenant. Be sure to check with the IRS and understand what this will mean to you.

Functionality
Ideally, you want the room you’re renting to have its own bathroom and its own entrance. Even a kitchen or small kitchenette, separate from your own personal living space, would be nice. This isn’t a requirement, but you can charge more if it has these features and you don’t have to worry as much about privacy for either you or the tenant.

Credit & Rates
When you’re determining how much to charge, be sure to include the added cost of utilities. There are many calculators you can find online to estimate utility costs. Before you let anyone rent a room in your home, you should run a credit check and criminal check. CriminalSearches.com is a good starting point for the criminal check.

These simple steps will help you figure out if renting a room is right for you and if so, how to get started on doing so. It could very well be a way to stop foreclosure without having to bring in much outside help.

No One Should Park for Free

2010-08-26T22:27:30Z

With UCLA professor Donald Shoup continuing to garner further exposure for his ideas around the perils of free parking and what it costs residents of cities across the US, the merits of parking spot ownership also continue to gather steam.

In a recent NY Times article, Shoup states that 99% of automobile trips end in a free parking space. The law of averages is no doubt in play here, as Boston has little to no free parking if you consider neighborhood resident parking areas “paid” parking. The South End neighborhood is a good example of Boston’s lack of free parking spaces, where perhaps the only free parking available is on Columbus Avenue in between Massachusetts Avenue and Dartmouth Street. Residents and visitors alike in this area circle Columbus Avenue like hawks pouching on available spots, only to many times leave cars sitting until they must be moved several days later for street sweeping.

Beacon Hill, similar in nature, is made up almost entirely of resident parking spaces, and the significant demand, outstripping supply by leaps and bounds, has continued to push up average resale parking space prices at the exclusive Brimmer Street Garage to approximately $250,000 per space.

The heart of this topic is the concept that the availability of free parking spaces propagates the use and possession of cars, driving, congestion, and pollution. Shoup suggests that a free parking space is in essence a subsidy. The trend towards decreasing congestion and cars in city centers, and increasing the use of public transportation, is not new. London serves as a great example of a city that has taken significant and proactive steps to curb automobile use in its city center through the use of economic means, a traffic congestion charge.

These trends place increasing amounts of wood behind the arrow of Boston parking spot ownership. An increasing number of investors and analysts are digging deeper into the concept of leveraging Boston parking spaces as investment vehicles by assembling a portfolio of income producing parking spots. Boston has been ahead of the curve in this realm, and should the trends evangelized by Shoup continue to gain steam, the economics of supply and demand will move even further in favor of owning a parking space in downtown Boston.

Four Ways to Make Bathrooms Greener

2010-08-29T14:35:33Z

Going green, or eco-friendly, is more than just a passing trend in the real estate industry. Rather, it is the wave of the future and Boston condo developers and current owners alike are taking notice. In fact, a growing number of homebuyers are looking for homes with eco-friendly designs and construction. Therefore, if you are looking for a way to increase the value of your home, or if you are simply trying to reduce your carbon footprint, you might want to consider implementing these four ways to make your bathroom greener.

Tip #1: Improve Water Efficiency

One way to make your bathroom more eco-friendly is to replace the toilet with a low-flow model and to install low-flow showerheads. You might also want to look for bathroom appliances with the WaterSense label, as those appliances that earn this label must be 20% more water efficient than their less efficient counterparts while still performing as well or better than those without the WaterSense label.

Tip #2: Choose Green Construction Materials

When remodeling your bathroom, there are many green material options to select from. Not only will these options reduce your carbon footprint, but many are quite attractive as well. For example, recycled glass tiles look great in the shower and green flooring options such as linoleum made from natural raw materials and bamboo will add flare to the room. Products carrying eco-friendly labels such as Green Seal and EcoLogo are also good construction options.

Tip #3: Install an Exhaust Fan

Installing an exhaust fan is a great way to get the air moving in your bathroom. Not only will this help keep your bathroom fresh, exhaust fans also help remove dampness from the room. By keeping dampness at bay, you reduce the risk of developing mold. This, in turn, reduces the need for using environmentally harmful chemicals to get rid of the mold.

Tip #4: Install Eco-Friendly Shower Curtains

Display your eco-friendly mindset by doing away with PVC shower curtains and replacing them with a “green” option. Eco-friendly shower curtain material options include coated nylon, hemp, linen, and organic cotton

By taking these four simple steps, you will save energy, water and money in the long run.

Boston Apartment Rental Market Breaks from Norm

2010-08-24T12:54:07Z

I hate to say it, but summer is winding down and September 1st is just around the corner, Boston’s biggest apartment turnover day. Every year, thousands of college students and professionals move to new apartments on the 1st of September, but with the economy on edge, this year’s market is far from normal.

Typically, students start looking for their September 1st apartments beginning in January. Over the years, landlords have grown accustom to this trend and the expectation is that the majority of their apartments will be rented by June. This year, the apartment rental market has been strong, but it has been apparent that renters have really been doing their homework and taking their time. Renters have been looking at more apartments and spending more time weighing options. Early in the season, this left landlords worried, and when July hit and they still had excess inventory, some landlords were starting to worry that their apartments would be left vacant for the next leasing year.

Thankfully (for landlords), the market has been very busy over the last month and Boston apartments are renting at a record pace. After speaking to several prominent area landlords and real estate professionals in the Back Bay, South End, and Fenway, it appears that they are all on pace to meet their historical vacancy rates of sub 5%. Despite the break from routine, landlords are happy with the last minute rush.

For those still scrambling to find a unit for September 1, 2010, don’t worry, some (picked over) inventory still remains, and with landlords anxious to fill units, Boston renters are in a position to negotiate fees and other items.

Transit Score Determines Home’s Transportation Costs

2010-08-23T12:45:52Z

When it comes to the public transportation system, the United States is slacking. A well-developed transportation system can take the nation a long ways when it comes to becoming green, and Walk Score’s newly launched Transit Score offering allows homebuyers to evaluate long term transportation costs associated with a potential home.

According to a study conducted by the Texas Transportation Institute, commuters waste 4.2 billion hours and 2.8 billion gallons of gas sitting in traffic each year. This is a lot of waste. Today’s commuters are very interested in a public transportation system that will help cut back on this waste of time.

Walk Score’s over 4,000 websites has been helping house-hunters find the perfect address for years. Walk Score has now introduced a tool that will help calculate commuting costs into the cost of purchasing a home. This tool is called Transit Score. It is designed to provide buyers with an effective solution to this driving issue.

Walk Score, developed by Front Seat, is based in Seattle. This product has been helping customers make housing decisions based on proximity to nearby amenities. These amenities include grocery stores, restaurants, schools, and public transportation. Walk Score has found that walkable neighborhoods offer tremendous value in terms of the economy, environment, and health benefits. A study conducted by the Center for Neighborhood Technology shows that traditional suburb dwellers can spend up to 32% of their income on the cost of transportation. That’s a lot of money going down the drain! Those living in more walkable neighborhoods only spend up to 12 percent.

Walk Score helps house hunters meet their transportation requirements with Transit Score. This service provides buyers with custom commute reports and a transportation calculator. Before you buy, whether buying Chicago luxury homes or a condo in Boston, you can know your transportation costs as well as proximity to public transportation and other essentials. This project is partially funded by The Rockefeller Foundation’s transportation initiative. It allows for third parties to easily add public transit information to its website.

Walk Score’s transportation ratings are currently available in Boston, Chicago, Los Angeles, San Francisco, Seattle, and Washington D.C.

10 Reasons to Buy with a Realtor’s Help

2010-08-20T20:11:15Z

When it comes to buying a home, some buyers might be tempted to cut out the middleman and attempt to do all of the work on their own. While this is certainly one possible option, there are actually many reasons why a buyer should seek out the assistance of a Realtor when purchasing a home. So, why use a Realtor? Here is a look at the top 10 reasons to buy a home with the help of a Realtor.

Reason #1: Taking Advantage of Expertise

The simple truth is that Realtors are experts at what they do and buying a home can be more overwhelming and complex than many think. By working with a buyer’s agent when purchasing a home, homebuyers can take advantage of the expertise they bring with them. As a result, they are more likely to find the home they are looking for at a price they can afford in a much timelier manner.

Reason #2: Tapping into Connections

Since Realtors have experience working in the industry, they have already formed a number of connections that can help homebuyers save money and time. From mortgage loan officers to home improvement contractors, Realtors know who to work with and who to stay away from within the industry.

Reason #3: Determining Your Buying Power

Realtors know how to sit down with their clients in order to help them determine just how much they can truly afford to spend on a home. By helping the homebuyer narrow down options, the Realtor can help save time and money while preventing unnecessary headaches.

Reason #4: Saving Time

Because they are already familiar with the properties that are available on the market, Realtors can help homebuyers save a significant amount of time when it comes to finding the houses that suit their needs as well as their budgets.

Reason #5: Locating Rare Gems

Sometimes, homes that are on the market are not actively advertised. As such, buyers who choose to go it alone are likely to miss out on these rare gems. Those who work with a Realtor, on the other hand, are far more likely to learn about homes that may require a bit more investigation to find.

Reason #6: Comfort through Expectations

While you have been through the buying process at most probably 3-4 times, a Realtor does this for a living, and has been through countless transactions. A Realtor knows the timeline and major transaction markers for home purchases in your market and can set expectations with you early on as to what to expect during the transaction process, putting your mind at ease.

Reason #7: Offering an Objective Eye

When searching for available homes, it is easy for a buyer to get caught up in the things he or she loves about a home without seeing the big picture. Since Realtors have access to a variety of different informational resources, however, they can provide objective input into the buying process that will help the buyer make a smarter decision.

Reason #8: Enjoying Increased Negotiation Power

When purchasing a home, there are many aspects that can be negotiated. This includes the price, the date of possession, the financing terms and more. With the experience of a Realtor at his or her side, the buyer will have the best chance of negotiating a favorable deal.

Reason #9: Choosing the Right Financing

Due to the experience and connections the Realtor has to offer, he or she can also help the homebuyer sort through the various financing options while also helping the buyer find the best lenders to suit their needs.

Reason #10: Knowing Someone Has Your Back

Perhaps the most important reason a homebuyer should work with a Realtor is simply because he or she can take comfort in knowing that someone has his or her back. Realtors provide due diligence during the evaluation of the property and can assist with having it inspected for asbestos, dry rot, faulty structure, termites and more. In addition, the Realtor can provide information regarding access rights and other concerns that might need to be addressed before a deal is made.

Why Use a REALTOR®?

Samuels & Associates Pitch New Fenway Developments

2010-08-19T13:57:12Z

The Fenway neighborhood has always held a special place in the hearts of Bostonians. The smell of hot dog and peanut vendors, the nostalgia of the run down buildings and worn streets, a stroll on them is almost like taking a page from a history book. However, a local developer has a new vision for the Fenway, one that will affect Boston real estate drastically.

Samuels & Associates of Boston filed a letter of intent earlier this month for its plan of two mixed-use buildings in the Fenway neighborhood. If approved, the builders will be renovating 132 Brookline Avenue at the corner of Brookline Avenue and Kilmarnock Street, and another building at the corner of Boylston Street and Van Ness Street. The proposal calls for the Brookline Avenue location to hold 170 high end apartments and ground floor retail, and the Boylston / Van Ness location to house a 150-unit luxury apartment building with over 400,000 square feet of retail and office space included. They also plan to build a parking lot underground at the Van Ness location that would accommodate up to 500 parking spaces. Steven Samuels of Samuel & Associates has a vision to make the Fenway more similar to a neighborhood such as the Back Bay.

This wouldn’t be Samuels’s first venture into the Fenway. His company already owns 11 buildings in the area, including luxury apartments. According to Mayor Thomas M. Menino, “This is further proof that developers are still bullish on Boston”.

Boston is one of the nation’s oldest cities but developers with a new vision of these old streets are bringing new ideas and possible revenue to the city. Retailers such as Whole Foods and Target have also discussed moving into this up and coming neighborhood, part of a continued effort known as the Fenway Triangle development that has been evolving the Fenway neighborhood into a revitalized urban village. Samuels believes that “What will make the Fenway great is good, consistent, pedestrian-friendly retail that becomes unbroken in effect”.

Bostonians pride themselves on tradition, but the city does seem to be developing with the times. And according to this article, change can be a good thing. John F. Palmieri, director of the Boston Redevelopment Authority, released a statement concerning these changes and is quoted saying,“We’re excited that the Samuels & Associates team wants to redevelop these parcels as it will further enliven the district with a mix of uses ensuring a thriving 24-hour neighborhood”.

24 hour neighborhoods and trendy stores will certainly increase foot traffic for the Fenway area. As the economy and real estate market begins to pick up once again, these developers are giving new life to the Fenway district.