Property Condition Disclosure Exemptions in Connecticut

Tip-of-the-Week:

The following situations are exempt from using the Property Disclosure Form (click here to view) per the State of Connecticut Real Estate Laws and Regulations section 20-327b:

"The following shall be exempt from the provisions of this section:
(1) Any transfer from one or more co-owners solely to one or more of the co-owners;
(2) transfers made to the spouse, mother, father, brother, sister, child, grandparent or grandchild of the transferor where no consideration is paid;
(3) transfers pursuant to an order of the court;
(4) transfers of newly-constructed residential real property for which an implied warranty is provided under chapter 827;
(5) transfers made by executors, administrators, trustees or conservators;
(6) transfers by the federal government, any political subdivision thereof or any corporation, institution or quasi-governmental agency chartered by the federal government;
(7) transfers by deed in lieu of foreclosure;
(8) transfers by the state of Connecticut or any political subdivision thereof;
(9) transfers of property which was the subject of a contract or option entered into prior to January 1, 1996; and
(10) any transfer of property acquired by a judgment of strict foreclosure or by foreclosure by sale or by a deed in lieu of foreclosure."

If you have any other questions about CT real estate laws or regulations please click here to view the State Of Connecticut Real Estate Laws and Regulations Concerning the Conduct of Real Estate Brokers And Salespersons.

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Why Your Home is Worth More than the One Down the Street.

Your home can be the exact same style and square footage as the one down the street, even be on the same sized lot, and still be worth more money than the other home.

Now that you actually see that in writing, and it's not just a thought in your head, it doesn't sound right, does it?

Suppose it's YOUR home that is the one down the street that's exactly the same in every way as the other house, and the Realtor says that  YOUR house is worth less? .... that doesn't sound right, either.

Your own emotional attachment to your home doesn't make it worth any more money. If an exact replica of your home was built right next door to you, your home would still be worth more "emotionally" to you. The house next door is somebody else's, and even though it's the same layout,  it just isn't your home, period.  One thing for certain is that your home is worth more TO YOU.

Sentimental attachments are not worth anything to the buyer, though. They have not created an emotional bond by looking at your home for twenty minutes, and just because your home is special to you doesn't mean that it's worth more in the marketplace to any buyer. That's a hard truth, and unfortunately, that's a fact.

How can an agent say your  house is worth LESS than the same house down the street? Why wouldn't it at least be the same?

There are a few reasons that this might actually be the case. One, and it's something that you've heard before-  is the location. If your home is on a corner lot, it WILL be worth less than the house down the street that isn't, and the reason has to do with privacy. If your home is on a main road, the exact same house that's next door to you will be worth more, if it's on a side street. By the way, the towns tax assessor rates your home in accordance with these principles as well.

If neither of those instances fit for your circumstance,, there is probably something else within that house that makes it worth more. It may be maintained better, may be updated in a more marketable way, or it  just shows better than your house does.

If the market is not increasing in value, your home should not be listed for more money than that house sold for, and for some, that's hard to swallow. It all comes down to the emotional attachment and sentimental value of your home TO YOU, and remembering that todays buyers are not willing to pay extra for it.

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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Could Your Vacant Home Be Disadvantaged in the Connecticut Real Estate Market?

Sometimes, selling a vacant home is the best choice, but it all depends on individual circumstances.  While most sellers live in their home while it is on the market,  some homeowners have the luxury of entertaining  a few different options when they sell.

When the seller vacates prior to marketing the home for sale, or while the property is on the market but not sold due to a relocation, they can choose to leave the home fully furnished, partially furnished, or vacant. Depending on the house and property, one may be a better option for some homeowners  than another.  

As a general rule, you should try and avoid selling an absentee or vacant home if at all possible, but there are some exceptions. 

Why You Should Reside in Your Home While it is On The Market, Even if you Have the Option Not To.

*Overall Home Security
*MOST homes "show" better furnished
*Buyers can envision themselves living at your home more easily.
*Minor cosmetic imperfections or flaws are not easily noticed
*Maintenance and Upkeep
*The buyers will have an example as to how to furnish a difficult room.

Why a Vacant Home Can Put Marketing Efforts  at a Disadvantage.

*Invitatation to potential break-ins
*Perceived desperation invites lower offers from buyers
*Tendency for some homesellers to forget to maintain the outside of home
*If you turn the electricity off, your home can only be shown during daylight hours
*If you set the thermostat to less than 65 degrees in the winter, it can become uncomfortable for buyers to even view your home for any length of time.
*If you choose to winterize your home instead,  it will be VERY cold in the winter, and not inviting to buyers.

The Middle Ground - Leaving Some Items of Furniture Rather Than a Whole Houseful.

If you must take most of your furniture with you, try and leave a few choice pieces behind, or if you have the means, rent some furniture short-term with expert guidance from your Realtor, or a professional stager.  If you are on a tight budget, focus on the living room, kitchen and just one bedroom. Additionally, you can purchase pre-owned furniture very cheaply, and it's very easy to find in the local paper or a few local online sources. Going this route can cost much less than renting individual pieces for a few months. Just something to consider.

When is Selling a Vacant Home Preferable to Selling a Furnished Home?

When a home's furnishings are far from neutral, are in very poor condition, or tattered and dirty, even though it's just furniture, it will detract from the home's marketability. Under these circumstances, and almost exclusively under these circumstances would I ever suggest that selling the home vacant would be a better idea.

If you are experiencing a market or particular condition in your marketplace where there is an influx of buyers who need to purchase and close quickly, a vacant home will give you a distinct advantage.

A few relevant articles on staging:

Proper Staging and Guidelines for Home Showings

Staging the Outside of Your Home

How Much Does it Cost to Stage Your Home

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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Winterizing Your Vacant Connecticut Home

Winterization is the process of preparing a home for the harsh conditions of winter. It is usually performed in the fall before snow and excessive cold have arrived. Winterization protects against damage due to bursting water pipes, and from heat loss due to openings in the building envelope.

Plumbing System

Water damage caused by bursting pipes during cold weather can be devastating. A ruptured pipe will release water and not stop until someone shuts off the water. If no one is home to do this, an enormous quantity of water can flood a house and cause thousands of dollars' worth of damage. Even during very small ruptures or ruptures that are stopped quickly, water leakage can result in mold and property damage. Broken water pipes can be costly to repair.

• All exposed water pipes in cold areas, such as attics, garages, and crawlspaces, should be insulated. Foam or fiberglass insulation can be purchased at most hardware stores.  Insulation should cover the entirety of a pipe.
• Plastic is more tolerant of cold expansion than copper or steel. Houses in colder climates might benefit from the exclusive use of approved plastic plumbing. 
• Water supply for exterior pipes should be shut off from inside the house and then drained.
• Sprinkler systems are particularly vulnerable to cracking due to cold-weather expansion. In addition to turning them, it helps to purge the system of any remaining water with compressed air.
• Homeowners should be aware that much of the plumbing system travels through areas that are significantly colder than the rest of the house. Because it is impossible to monitor the temperature of every portion of the plumbing system, indoor air temperature should be kept high enough throughout the winter to keep pipes in any unheated places from freezing.

Leaks in the Building Envelope

Leaky window frames, door frames, and electrical outlets can allow warm air to escape into the outdoors.

• Windows that leak will allow cold air into the home. Feeling for drafts with a hand or watching for horizontal smoke from an incense stick are a few easy ways to inspect for leaks. They can be repaired with tape or caulk.
• On a breezy day, a homeowner can walk through the house and find far more leaks than they knew existed. Leaks are most likely in areas where a seam exists between two or more building materials.

Insulation

• Because hot air rises into the attic, a disproportionately larger amount of heat is lost there than in other parts of the house. Like a winter hat that keeps a head warm, adequate attic insulation will prevent warm indoor air from escaping. Attic insulation should be 12 inches thick in cold climates.
• Storm doors and windows should be installed to insulate the house and protect against bad weather.

Heating Systems

 

The heating system is used most during the winter so it’s a good idea to make sure that it works before it’s desperately needed. The following inspection and maintenance tips can be of some help to homeowners:

• Test the furnace by raising the temperature on the thermostat. If it does not respond to the adjustment quickly it might be broken.
• Replace the air filter if it’s dirty.
• If the furnace is equipped with an oil or propane tank, the tank should be full.

Cooling Systems

• Use a hose to remove leaves and other debris from the outdoor condensing unit, if the home is equipped with one. Protect the unit with a breathable waterproof cover to prevent rusting and freezing of its components.
• Remove and store window air conditioners when they are no longer needed. Cold air can damage their components and enter the house through openings between the air conditioner and the windowpane.
• Ceiling fans can be reversed in order to warm air trapped beneath the ceiling to recirculate. A fan has been reversed if it spins clockwise.

Chimneys and Fireplaces

• The chimney should be inspected for nesting animals trying to escape the cold. Squirrels and raccoons have been known to enter chimneys for this reason.
• The damper should open and close with ease. Smoke should rise up the chimney when the damper is open. If it doesn't, this means that there is an obstruction in the chimney that must be cleared before the fireplace can be used.
• A chimney-cleaning service professional should clean the chimney if it has not been cleaned for several years.
• The damper should be closed when the fireplace is not in use. An open damper might not be as obvious to the homeowner as an open window, but it can allow a significant amount of warm air to escape.
• Glass doors can be installed in fireplaces and wood stoves to provide an extra layer of insulation.

Roofs

• If debris is left in gutters, it can get wet and freeze, permitting the formation of ice dams that prevent water from draining. This added weight has the potential to cause damage to gutters. Also, trapped water in the gutter can enter the house and lead to the growth of mold. For these reasons, leaves, pine needles, and all other debris must be cleared from gutters. This can be done by hand or with a hose.
• Missing shingles should be replaced.

Landscape

• Patio furniture should be covered.
• If there is a deck, it might need an extra coat of sealer.

Adequate winterization is especially crucial for homes that are left unoccupied during the winter. This sometimes happens when homeowners who own multiple properties leave one home vacant for months at a time while they occupy their summer homes. Foreclosed homes are sometimes left unoccupied, as well. The heat may be shut off in vacant homes in order to save money. Such homes must be winterized in order to prevent catastrophic building damage.

 

In addition to the information above, InterNACHI advises the following measures to prepare an unoccupied home for the winter:

• Winterize toilets by emptying them completely. Antifreeze can be poured into toilets and other plumbing fixtures.   
• Winterize faucets by opening them and leaving them open.
• Water tanks and pumps need to be drained completely.
• Drain all water from indoor and outdoor plumbing.
• Unplug all non-essential electrical appliances, especially the refrigerator. If no electrical appliances are needed, electricity can be shut off at the main breaker. 
  

 

In summary, home winterization is a collection of preventative measures designed to protect homes against damage caused by cold temperatures. These measures should be performed in the fall, before it gets cold enough for damage to occur. Indoor plumbing is probably the most critical area to consider when preparing a home for winter, although other systems should not be ignored.

by Nick Gromicko, Rob London and Kenton Shepard

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV

 

 

Shadow Real Estate Inventory in Fairfield County CT Looming for 2012 and Beyond

You may have heard a lot about Shadow Inventory from the top real estate and financial  analysts, who are predicting a less than stellar real estate market for the next few years. From what I can see here in Fairfield County, we are caught up in its backlog as well.

The increasingly common term describing our real estate market is "Shadow Inventory", and it refers to the houses that will be on the market predominantly due to one of the following: they are pending foreclosure, homes that have already been foreclosed  and not yet sold, properties that are caught in the clogged foreclosure process, and lastly- homes that owners are delaying putting on the market until prices improve. Shadow inventory creates uncertainty about the best time to sell (for owners) and will dictate when a local market can expect full recovery.

None of this even takes into account the homes that were listed on the market and didn't sell during the listing contract, and those homes will also come back on the market at some point, too.

According to the National Association of Realtors, Arizona, California, Florida and Nevada account for 42 percent of the nation's foreclosure inventory today, and Florida tops the list with over 441,000 properties.  It is estimated that this type of inventory in Connecticut exceeds 26,000 homes.

There are approximately 3.5 million houses for sale nationwide, but millions more are not on the market yet, and may not be for months, even years. Standard & Poor's estimates that the shadow inventory of homes is worth $405 billion nationally and estimates that  the inventory will take four years to clear.

According to the GFC-CMLS, which may have up to a 30-60 day delay in reporting, there are currently  over 10,200 properties in distressed status in Fairfield County alone, while less than 940 are bank owned. That's an awfully large backlog of properties that is going to take some time to sell.

The hardest hit areas in the twenty three towns and cities in Fairfield County are its four most populous communities. Bridgeport, Stamford, Norwalk and Danbury comprise over 6,400 or nearly 63 percent of the  looming inventory. Also just as troubling is that just over 600 properties are showing current ownership by banks or financial institutions. It appears that we have a long, long way to go before this gets corrected and the market can return to some state of normalcy.

The Fairfield County towns with the fewest foreclosures and amount of Shadow inventory in the wings are Sherman, Easton, Redding and Darien with a four town total of 240 properties either in some stage of foreclosure or bank owned.

The fact that 90 percent of these homes have not even hit the market yet is cause for concern over the next few years. Even though interest rates are at all time lows, credit has tightened for the few buyers that are out there and wanting to purchase. These current conditions of the real estate market  are not leaving us anytime very soon, and unfortunately may, in fact get just a little worse before it gets better.

SEE UPDATED ARTICLE ON SHADOW INVENTORY DATED 3/15/2012

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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