Home Improvement Projects: Maximizing Your Investment

It is widely accepted that in this area, with our frigid winters, adding a pool is generally not something that will increase the value of a home. Neither, according to to Remodeling Magazine’s Cost vs Value Report, does adding a sunroom. Of course, if the benefit of hosting never-ending pool parties on hot summer days is important to the homeowner, these projects can be well worth the cost.

But there are plenty of other home improvements that can both appeal to the owner and add to the resale value of the home. In the Boston area projects that add the most value are a minor kitchen remodel, which retains an average of 89% of its cost at resale, a wood deck and upscale siding, both recouping 86%, and installing a new steel entry door, which retains 81% of its cost. Interestingly, the report showed that a midrange basement finishing project would only preserve 62% of its value. However sales seem to show that a basement finished to the point that it adds livable square footage to an otherwise small home can be an excellent investment.

The averages are very useful, but in deciding whether a project is worth the expense, there are more specific considerations. Improving a home to make it similar in size and condition to others in the neighborhood will generally provide a very good return on investment, and will help it sell more quickly. If a property is in terrible condition and renovated to meet or slightly exceed the standards of the neighborhood, the renovations can easily bring more than their full cost to the value of the house.

However, overimproving and adding high end features to a starter home that buyers in a particular price range don’t expect will not increase the value of the home by the amount spent on renovations. Making a remodeling project too personal can also do more to turn off future buyers than appeal to them. If a home already has a reasonably modern, neutral kitchen, for example, installing expensive custom hardware or a stainless steel backsplash may look great, but should not be done as an investment in the value of the home.

Whatever spring or summer project you may decide to undertake, it’s important to do your research and make selections carefully. Always get several prices and ask contractors for references and examples of their work. Finally, be sure to get everything in writing, and then, having done all your homework, enjoy either the results or a fast sale of your home!

Multi-Family Properties in Natick, Wellesley, and Newton

With sale prices and mortgage rates at a low and rents on the increase, more and more people are buying rental properties. While it can be difficult for a new investor to get financing on a property that is not a primary residence, cash buyers, owner-occupants, and those with a history of rental income or sufficient income to qualify for more than one mortgage if necessary, can do very well both in the short term and long term with multi-family homes. Rental income can provide immediate cash flow, while buying at the bottom of the market, particularly a property that has room for improvement, can generate a profit when sold years later.

In Natick, Wellesley, and Newton, the average sale price of a multi-family property increased 8% from an average of $528,000 in 2010 to $571,000 in 2011 (not accounting for sales that could take place during the 23 days left of the year). Still, there are good deals out there, particularly for anyone with the resources to handle a fixer-upper. 36 multi-families are currently on the market in these towns, from 2-family homes to mixed use buildings.

The following is a great calculator to determine return on investment, taking several factors into account: http://www.goodmortgage.com/Calculators/Investment_Property.html

For more information, please find my contact information as well as search for properties at www.torykeithrealestate.com.

Recent Metrowest home sales: October 2011

Lots of people have mentioned how interested they are in seeing recent sales, so I'll focus on that a bit more than my regular market updates. If you're interested in any other information or sales for other towns in the area, please email me and I'll get you what you need. Of course, you can always do your own searches here (or if you're on a smart phone, here).

Single family home sales in the last week for a few Metrowest cities and towns (10/17/11-10/24/11) - prices shown are sale prices:

Natick
17 Belmore Rd (3 bed Cape): $335,000
12 Oak Knoll (3 bed Ranch): $336,800

Wellesley
22 Elm St (3 bed Colonial): $825,000
40 Whittier Rd (4 bed Colonial): $842,000
50 Woodlawn Ave (4 bed): $1,000,000
56 Temple Rd (4 bed Multi-Level): $1,100,000
81 Maugus Ave (4 bed Contemporary): $1,500,000
37 Garrison Rd (6 bed Colonial): $1,690,000

Newton
6 Philbrick Rd (3 bed Colonial): $504,000
12 Roosevelt Rd (3 bed Colonial): $526,000
106 Brookline St (3 bed Cape): $542,000
23 Hemlock Rd (3 bed Cape): $537,000
23 Marcellus Dr (3 bed Colonial): $725,000
186 Lincoln St (3 bed Colonial): $923,000
76 Cotton St (5 bed Colonial): $1,337,000

Needham
14 Hazel Ln (4 bed Split): $507,500
672 Chestnut St (5 bed Colonial): $2,040,000

Wayland
19 Oak/Timber (4 bed Cape): $374,000

Recent Home Sales in Natick and Wellesley September 2011

In addition to overall market data (September Update), it can be interesting to see more specifics on recent sales, especially for those considering buying or selling. Here are Natick and Wellesley's sales in the last week (only single family homes are included here):


Natick


25 Virginia Rd (4 bed cape) Sold: $256,500
19 Lacosta Dr (3 bed raised ranch) Sold: $435,000
16 Strawberry Hill Rd (4 bed cape) Sold: $531,000
10 Clover Ln (4 bed split) Sold: $540,000

Wellesley


676 Worcester St (5 bed colonial) Sold: $385,000
389 Worcester St (5 bed colonial) Sold: $515,000
361 Linden St (4 bed garrison) Sold: $655,159
25 Glen Rd (4 bed colonial) Sold: $710,000
30 Oakridge Rd (5 bed colonial) Sold: $820,000

Metrowest September 2011 Market Update - Natick, Wellesley, and Newton

The fall housing market is well underway! Here are the key facts, with comparisons from last month, for Natick, Wellesley, and Newton:

In Natick, there are currently 85 single family homes on the market for an average list price of $599,000. 26 homes have sold in Natick in the past month for an average of $488,500 (up 7% from last month) after 69 days on the market (faster than an average of 95 days last month).

In Wellesley, there are currently 146 single family homes on the market for an average list price of $1,751,000. 16 homes have sold in Wellesley in the past month for an average of $1,170,000 (down 14% from last month) after 99 days on the market (faster than an average of 126 days last month).

In Newton, there are currently 193 single family homes on the market for an average list price of $1,188,000. 52 homes have sold in Newton in the past month for an average of $893,000 (down 2% from last month) after 80 days on the market (slower than an average of 70 days last month).

5 Lies & 3 Truths from Real Estate Reality TV

There is no shortage of addictive real estate reality tv - House Hunters, Flipping Out, Property Virgins, Million Dollar Listing, Selling New York, Flip This House (to name a few!) - but how much from these shows can be applied to real life? Well, some. But here are 5 real estate un-realities that always seem to come up on reality tv:

1. The house should sell at the open house.
Of course, it's great when that happens, and you can get good feedback this way (especially if you're on a show that puts hidden cameras out and you have smelly old carpet in every room). But, most of the time, the home sells after a regular scheduled showing, so don't stress too much if it's not under agreement after the first Sunday it's on the market.

2. To flip a house, your only expenses are the cost of the house plus repairs.
If only the profits shown at the end of these shows were real! They don't usually factor in carrying costs like taxes, insurance, utilities, and interest, closing costs, or commission. It's still possible to do very well but if you're getting any ideas, remember to account for ALL the expenses.

3. You need lots of help, experience, and power tools to stage a home on a budget.
Sure, these things help, but just because you aren't a carpenter and don't have access to one who will work for free doesn't mean you can't make your home look like it should be featured in the Pottery Barn catalogue. Anyone can de-clutter, store too-big furniture, do a halfway decent job painting, and buy fresh flowers. And, don't forget to close the toilet seat.

4. Real estate agents regularly make six-figure commissions.
Shows like Million Dollar Listing and Selling New York show the potential commission agents make from each sale, but what they don't clarify is that the listing agent and buyers' agent split that commission 50/50 and split it again (this amount varies) with their brokerage, and also pay marketing costs. So neither your favorite tv agent nor the one selling your home will be walking away with the whole 5% of the sale price.

5. Buyers are supposed to see three homes and then buy the one of those three that they like the best. 
This makes a good structure for a 30 minute show, but it's rarely the case. Some buyers will look for months (and sometimes years) before they find just the right property, and others will make a purchase sight unseen from across the country. Somehow I don't think giving each client three homes to choose from would get me much repeat business.

For when you just can't stop watching, there are SOME parts to these shows that you can believe. The best three:

1. Look at houses similar to yours that have sold recently. Maybe even in person.
If you're selling a house, your agent should give you "comps", or homes that are close to yours in size, condition, and location. This will support the price you list at and give you an idea of features you might need to improve upon. If you're hesitant to just accept a list price - or a list of work to do - go check them out in person and see what you think.

2. Clean!
Some shows like Designed to Sell will bring in professionals to do some updating, but they also emphasize the importance of cleaning. If you're selling your home, have it spotless before the first picture is taken. For some who are vacuum-challenged or just don't have time, spend a little cash and hire a cleaning person for a one time clean.

3. De-personalize.
Yes, your kids are adorable, and your wedding pictures are beautiful, but it is true that personal photos will not help prospective buyers envision themselves in your home. So, just for now, pack up the pictures and get ready to hang them at your new home. At the same time, if you're a buyer, it will help if you can try to see past someone else's photos, artwork, and car in the driveway (unless, of course, it's a really nice one).

Metrowest August 2011 Market Update

The following information covers Natick, Wellesley, and Newton for 7/21/11-8/20/11. There haven't been significant price changes since last month, aside from the typical mid-summer slow down, but it remains clear that to avoid a long time on the market, sellers must have their homes priced right and marketed well. In some cases, even in the current market, this leads to a sale price above the listing price in a short period of time.


In Natick, there are currently 91 active single family homes on the market for an average list price of $579,000, having been on the market for an average of 119 days.
There are 37 homes under agreement, with an average list price of $496,000. These homes were on the market for an average of 61 days.
In the past month, 27 homes sold for an average of $457,000 (list prices averaging $468,000), after 95 days on the market.

In Wellesley, there are currently 140 active single family homes on the market for an average list price of $1,811,000, having been on the market for an average of 157 days.
There are 23 homes under agreement, with an average list price of $1,373,000. These homes were on the market for an average of 104 days.
In the past month, 43 homes sold for an average of $1,367,000 (list prices averaging $1,451,000), after 126 days on the market.

In Newton, there are currently 185 active single family homes on the market for an average list price of $1,245,000, having been on the market for an average of 126 days.
There are 72 homes under agreement, with an average list price of $981,000. These homes were on the market for an average of 83 days.
In the past month, 72 homes sold for an average of $908,000 (list prices averaging $937,000), after 70 days on the market.


Although they aren't included here, condos and multi-family properties are excellent investments right now, as there is a very strong rental market. Owners can benefit from cash flow and tax deductions if they are able to finance the purchase of a rental property.


For more information, please visit my website: www.torykeithrealestate.com

Family Friendly Events & Activities in Natick and Wellesley August-September 2011

Even if your vacation is already over, there's still plenty to do to make the most of the rest of summer in Natick and Wellesley!

Courtyard Fun, Linden Square, Wellesley: Movie Nights every Thursday until 9/1 and Saturdays for Kids from 2-5 until 8/27. http://www.shoplindensquare.com/

Natick Concerts on the Common every Monday at 7pm until 8/22

Natick Farmers Market every Saturday on the Common from 9-1

Natick Days 9/10 11-4 Natick Center http://www.natickdays.org/

Wellesley Summer Concerts, Town Hall Green - last one tonight, 8/3 from 7-8:30  http://www.wellesleyma.gov/pages/wellesleyMA_Recreation/Special%20Events

Morses Pond Beach Movie: Finding Nemo, 8/11 7:50 http://www.wellesleyma.gov/pages/wellesleyMA_Recreation/Special%20Events

Swimming and sandcastles at Morses Pond Beach in Wellesley and Memorial Beach at Dug Pond in Natick

What are your favorite local late summer activities?

Natick & Wellesley July Market Snapshot

In Natick, there are currently 92 active single family homes on the market for an average list price of $593,000, having been on the market for an average of 108 days.
There are 43 homes under agreement, with an average list price of $498,000. These homes were on the market for an average of 69 days.
In the past month, 40 homes sold for an average of $500,000 (list prices averaging $517,000), after 65 days on the market.

In Wellesley, there are currently 142 active single family homes on the market for an average list price of $1,804,000, having been on the market for an average of 146 days.
There are 52 homes under agreement, with an average list price of $1,431,000. These homes were on the market for an average of 99 days.
In the past month, 40 homes sold for an average of $1,317,000 (list prices averaging $1,399,000), after 152 days on the market.

Sale prices in both towns are up from last month. See last month's market update to compare other data: 
http://torykeithrealestate.blogspot.com/2011/06/metrowest-market-snapshot-61911.html



http://www.realestateclipart.com/

Home Improvements When Selling: Most Bang for Your Buck

To gain an edge in the current real estate market, many homeowners are choosing to improve some aspects of their home. Often, this money can be well spent and will attract buyers who are willing to pay more for the home. In other cases, improvements are too personal or too costly to make much of a difference. Addressing major problems or very dated cosmetic aspects of a home will almost always bring a good return, while building an addition or upgrading things that don't necessarily need fixing could be a waste of money.

Based on Remodeling Magazine's '09-'10 Cost vs Value report, the top five projects for return on investment in New England are:

1. Front door replacement
2. Siding replacement
3. Deck addition
4. Attic bedroom
5. Window replacement

Kitchen remodels were next on the list, and when considering taking on this kind of project, as with others, it is important to compare your home to similar homes in order to create an appealing space without "over-improving". For anyone planning on staying in their homes, they will want to remodel with both themselves and potential buyers in mind, making changes that they will be able to enjoy while they remain in the home, but that aren't overly personal.

Metrowest Market Snapshot 6/19/11

In Natick, there are currently 77 active single family homes on the market for an average list price of $621,000, having been on the market for an average of 110 days.
There are 62 homes under agreement, with an average list price of $529,000. These homes were on the market for an average of 65 days.
In the past month, 27 homes sold for an average of $430,000 (list prices averaging $442,000), after 73 days on the market.

In Wellesley, there are currently 138 active single family homes on the market for an average list price of $1,677,000, having been on the market for an average of 133 days.
There are 37 homes under agreement, with an average list price of $1,404,000. These homes were on the market for an average of 150 days.
In the past month, 40 homes sold for an average of $1,145,000 (list prices averaging $1,210,000), after 88 days on the market.

In Newton, there are currently 217 active single family homes on the market for an average list price of $1,282,000, having been on the market for an average of 101 days.
There are 123 homes under agreement, with an average list price of $975,000. These homes were on the market for an average of 63 days.
In the past month, 63 homes sold for an average of $905,000 (list prices averaging $929,000), after 68 days on the market.