It just so happens that there is a Senate bill being reintroduced that is going to have a direct impact on the borrowing capacity of home buyers based on the energy efficiency of their new prospective home. If you ask me (which you didn’t) this sort of thing is long overdue.

The theory behind the bill, is that a home’s energy efficiency translates into direct savings to the home owner. That savings, in turn, would put more money in the pocket of said home owner and therefore allow them to afford more “home”. Now, before anybody freaks out and starts throwing “yeah-buts” my way, we all know that there is more to mortgage affordability than the electric bill. But let’s review some of the meat of this story.

The bill would give lenders the flexibility to calculate the projected energy savings derived from the energy-efficient features or upgrades in the home. The lenders would, as usual, measure the borrower’s income against expenses and the value of the home. This additional “factor” would not only give borrowers the capacity for a larger mortgage, but would potentially lower their interest rates! Ahh, I have your attention now. (Did someone say “money-savings”?)

There are already some programs in place for “energy-efficient” mortgages under a HUD program (Department of Housing and Urban Development), but this new legislation would require the lenders to take the “projected savings” into account whenever they were presented with a qualified energy report. This program would be farther reaching and offer this benefit to a whole new group of buyers.

The bill was originally introduced back in 2011, but didn’t get the legs to make it very far. This time they have removed the penalties for older, less efficient homes and are making deeper appeals to the real estate industry. (Smart move.) Our very own Democratic Senator, Jeanne Shaheen is introducing a more comprehensive energy bill intended to lessen energy use, lower greenhouse gas emissions and bolster the market for conservation upgrades. If this mortgage bill can ride along on those coat-tails, it actually has a good chance of passing.

According to Senator Michael Bennett, a Democrat from Colorado and co-author of this bill, the average household’s energy costs typically total around $70,000 over the life of a 30-year loan. That is more than real estate taxes (usually) and insurance payments that are already taken into account during the origination and underwriting of the loan. It stands to reason that we should be taking a closer look at those factors that actually SAVE the homeowner money.

When a homeowner installs better windows, doors, insulation and other energy-reducing upgrades, the average reduction in energy costs are around 30%. A few weeks ago we talked about what today’s buyers want when shopping for a home, and an energy-efficient home is at the top of the list. The National Association of Realtors reported that 4 of the top ranked home features wanted by buyers were related to energy savings. 94% of buyers stated they wanted energy-star rated appliances, 91% wanted the whole structure to be energy-star rated and 89% wanted (at least) energy-star rated windows.

The key has been convincing buyers to actually PAY for those upgrades. Proponents of this bill are hoping it will help bridge that gap between “wanting” an energy-efficient home and “buying” one. They are expecting this bill will not only promote energy conservation and provide a boost to the construction industry, but also generate over $1 billion a year in consumer savings by 2021.

To put this in perspective, the average borrower could expect to gain about 5% more borrowing power. Clearly this is not going to get you that 3-car garage you were hoping for. But, of the $2 trillion in mortgage loans originated every year, this will have a significant impact. “Considering there are disclosures for termites and radon and that you have an inspector check out your entire home for structural defects, this significant factor has been living in a proverbial blind spot for too long,” noted Badger Realty agent Lee Phillips.

I’m encouraged by this bill. Not just for the financial benefit to potential buyers or even for the indirect benefit to home owners who have made the effort and incorporated these upgrades into their homes already. I’m mostly encouraged that there is legislation in progress that is rewarding energy conservation. I’ll admit, I tend to be a bit of a tree-hugger, but the overall benefit is global, not local. We’re excited about our new solar panel installation and are looking forward to seeing more of this type of upgrade throughout the Valley.

For some reason, the universe (if you subscribe to that sort of thing), has been teaching me the lesson that there are always two sides to every story. Be it the anti-fracking folks trying to retain their potable drinking water or the anti-Monsanto groups working for food that has not been through Frankenstein’s lab. This week I’d like to talk about the flip-side of the simple offer. Granted, minimal contingencies might make your offer easier for the sellers to accept, it could also leave you exposed, and even forced to buy the home regardless.

One of the more common contingencies is used by buyers who are also selling their home. This allows for the sale of the home to occur before the new deal is finalized. As a seller, this would be a bit of a turn-off for that particular offer, but from the buyer’s side, it is essential. Of course, there are folks out there who don’t need to finance their homes and for them the risk is far less. There are also tax implications for the sale of a home and ways in which buyers can mitigate their tax burden from the apparent proceeds. These are all important to consider.

I have always encouraged my buyers to include some sort of financing contingency as well. Most sellers would not even consider an offer that did not include proof of financing. Having this text in the offer protects the buyer in the off-chance that something goes awry with their mortgage. Although I’ve never heard of this actually happening, without this in place the sellers could actually sue for “specific performance”. Clearly not a position you want to be in.

An appraisal contingency is very similar to the financing contingency since if the property in question does not appraise, the bank won’t lend you the money anyway. This is more common with homes that are not being fully financed and for investment properties. While it may lean in favor of the buyers, you normally don’t want to be “upside down” on your home before you even sign the paperwork. It is best to have a professional evaluate the home and give you the peace of mind you deserve.

A few of my friends have purchased “fix-er-uppers” throughout New Hampshire. Even though they were fully (or mostly) aware of the project in front of them, there were still a few items that needed to be taken care of prior to closing. Don’t be afraid to include these repairs on your offer. While it might gum-up the contract, it is far better to have it in writing than to expect a mutual understanding based on a verbal conversation.

Having a professional evaluate the home is also important with inspections as well. Unless you are a professional contractor or builder, having an inspection contingency just makes good sense. On most purchase and sales agreements, the inspection contingencies are standard. It is simply up to you to make sure the correct boxes are checked.

When you are going through the closing process, you are typically offered title insurance. My advice would be to get a little ahead of the game and include some sort of title contingency. This will simply ensure that the seller is, in fact, the actual owner of the home. “Certainly in New England and New Hampshire, there were lots of transactions that went down with not much more than a hand-shake”, notes Badger Realty agent, Ed O’Halloran. He continued, “If I were in the process of buying an older home or even a tract of land, I would ensure that there was some sort of paper trail. It just makes good business sense.”

As I mentioned above, there has to be a balance in this whole process. As a buyer, I want to be sure that I’m covered and I’m protecting myself throughout this process. Can I get insurance? Can I get financing? Is that hole in the roof fixed? But from the seller’s perspective, they are going to take the simplest and least complex offer that comes their way. The seller is going to be looking for the contract that is least likely to fall apart. This typically means having the fewest contingencies. The trick is to find the appropriate balance so both sides of the deal are content.

Before you head down the road to buy your first home, you really need to consider how long you intend to stay there. I promise you, your financial advisor will offer the same advice. Not only is the process of moving expensive, but the financing end of things is stacked against you if you have to re-locate in under 5 years. The same is true for re-financing (unless your APR is in the double digits!).

If you are unsure about your future plans because of job instability, actually liking the area or even just because you are thinking of seeing different parts of the country or world, buying a home might not be right for you. At least not right now. There are lots of great rentals out there and there are still going to be a few overall “rules” for real estate that will apply to both renters and buyers. In fact, if you are purchasing a home for the purpose of renting it, these factors will apply regardless of who is calling this house their home.

One of the first considerations is the local employment market. When there is little unemployment in an area, that is typically an indication that the home prices are going to remain stable and/or go up. The more jobs in an area, the more desirable it will be to people like yourself who are looking to relocate. People are trending towards wanting to live closer to where they work. Whether for convenience or to save a little pollution for the rest of us. (Either way, it is a great trend and one I hope continues.) You can always check out the Bureau of Labor Statistics to get the low-down on any given area.

Going hand-in-hand with the unemployment rate, which points to an area’s desirability, is the residential vacancy rate. If you find there are lots of unoccupied homes and apartments in an area, that is a bit of a red flag. If your goal is to rent the property, you are going to be faced with immediate competition and will likely have a home sitting vacant for long periods of time. Even if you are buying the home to live in yourself, too many vacant homes will not bode well for the strength of the real estate market and your ability to sell when the time comes. There is no real secret to this one, just spend some time in the classifieds or driving around the area looking for “For Rent” signs. That will tell you all you need to know.

Of course, wouldn’t we all like to find that area that has lots of vacancies now, but is about to turn a corner and become a hot area. These are difficult to find, but great opportunities for good deals and even for flipping homes. “For investors and the more discerning buyers, an area’s occupancy rate is pretty high on their list of criteria,” notes Badger Realty agent Norman Head. He continued, “This is critical for both residential and commercial real estate since both rely on people’s desire to live and work in that area”.

On the heels of the last few natural disasters we have experienced or watched on TV, knowing what a given area is prone to should be an important component to your decision. Granted, some people love an area or a home so much that they will live there despite the dangers or super-high insurance rates (I’m looking at you New Orleans). But when considering stress-free living and resale potential, I would encourage you to keep looking for a home that does not sit below sea level (just sayin’). Everyone is different and has different tolerance for these kinds of situations. Many people think we are crazy for living in a “frozen tundra” for 5 months of the year. For most of us, the challenge is worth the reward. (Even when it snows on Memorial day!!)

As much as I hate to admit it, simply because I tend to think the best of everyone, a visit to the local police station is always a good idea. If you have traveled to a few different cities in your days, you know that crime rates are not always obvious right away. An area that looks neat, clean and safe could simply have more savvy criminals. If you can have a few conversations with the locals, you might find out that they don’t lock their doors or their cars. This is certainly more typical in smaller towns, but without asking you wouldn’t know. You can also get crime-rate information about most towns right online.

Nobody will argue that location plays a key role in a home’s desirability as well as its resale value. But take some time to broaden your scope and consider these other factors as well. The weight you place on each criteria is up to you. But at least you will have explored the area thoroughly and have a few less surprises along the way. Happy Shopping!

The ray of light in this story is that we are starting to see these appraisals catch up to, what appear to be, rising home values. Lawrence Yun, chief economist for the National Association of REALTORS®, notes that “…appraisers are valuing homes at or above their selling prices as home prices nationwide climb and inventories of homes decrease.” This is great news for home buyers and great news for agents who have been burned by low-ball appraisals in the past couple years.

“It’s one thing to have the two parties of a deal be unable to come to an agreement, but when the appraisal is the proverbial ‘wrench in the works’, it tends to be a little more frustrating” comments Badger Realty agent, Nubi Duncan. Thankfully that trend is heading in the other direction.

Before you get to the appraisal, especially in an increasingly competitive market such as we are currently heading into, how do you help your offer stand out above the crowd. I don’t think we are in a market where there will be dozens of competing offers for any given property (wouldn’t that be nice!), but we are certainly seeing multiple offers on properly priced listings. Aside from wiggling around in your chair, waving your hand like a goon and saying “ooh, ooh, ooh, pick me, pick me” and short of offering double the asking price, how can you make your offer stand out?

Making use of the “K.I.S.S.” mentality is a great idea. When making an offer on a competitive property, keeping the terms of your offer as simple as possible is nearly always the best policy. I recall a purchase and sales agreement that I delivered a few years ago, that included 16 contingencies. Sixteen! This particular situation had a couple fairly strong personalities and neither party was budging on their side of the deal. Miraculously it came together and everyone walked away (relatively) happy. This is not always the case and is certainly not encouraged in today’s market.

The fewer “extras” you include in your contract, the more attractive it will be. Putting yourself in the shoes of the seller makes this rather obvious. If you had the choice between 2 contracts, but one of them included a full-page addendum to hold all of the contingencies, which one would you be more inclined to accept? Don’t include those tiny repairs or other items that, in the grand scheme of things, don’t impact your out-of-pocket expenses a great deal. The goal here is to make it easy for the sellers to say “yes”.

I would also highlight that this does not preclude the financing contingency. Granted, no agent with a hint of integrity would encourage you to make an offer without this contingency in place. But, looking at this from the seller’s side again, why would they tie up their potential sale with a contract that hinges on the buyer’s credit score and financing capacity. If they get an offer, even for a lower amount, that does not require them hold out for approvals, they will likely accept it. The only exception would be if the buyer could afford to pay for the home in cash. In that particular situation, the risk is not so great.

Right along those lines, I have often encouraged my buyer’s loan officer to make a follow-up phone call to the listing agent once the offer has been submitted. Along with a pre-approval, this is a big statement to the sellers that your buyer is serious about their house. No other details need to be relayed at this time, but this act will simply convey that this is the house these buyers want and they are motivated to close the deal. Eliminating the possibility of a long drawn-out closing is attractive to both sides of the table!

One of the old stand-by techniques in real estate (actually in sales overall) is the hand-written thank-you note. In this digital world of e-cards, e-mails and online status updates, this personal gesture gets great mileage with anyone over the age of 20. When it comes to presenting your offer, I always encourage the in-person delivery. Granted, here at Badger Realty, we tend to deal with lots of vacation homes and long-distance buyers. That aside, the personal touch of a hand-delivered offer is quite powerful.

Real estate, like many things in life, is all about relationships. While email and fax are clearly more efficient with this type of delivery, they are still cold and distant. The personal delivery gives the buyer’s agent another opportunity to “talk-up” his buyer and the offer to the listing agent. This provides the listing agent with a good impression and some good information to pass along to his sellers.

If you and I are walking through the woods and we get chased by an angry bear, I don’t have to outrun the bear. I just need to outrun YOU! I learned, long ago, that in order to be successful in most any business, you don’t necessarily have to be the absolute “best” at what you are offering. You just need to be a smidge better than your competition. When you are considering making an offer this spring, take the extra time to put yourself in the seller’s shoes and craft an offer that you yourself would accept. Chances are you’ll escape the angry bear and get the deal.

My earliest (coherent) childhood memories are from the earliest days of grade-school. We lived in an apartment in Amesbury, MA filled with lots of similar-aged kids. I have visited that location a few times since those early days and was immediately refreshed with loads of fond memories. Skateboarding down the hill to the lower lot, putting baseball cards in the spokes of the bike tires and running around playing tag and dodge ball until the streetlights came on or until we got the call (via voice, not phone!) from mom.

In a similar way, a visit to the beaches of Wells, Maine brings back memories of our house on Ocean Pines Circle. Dad wearing a pumpkin on his head for Halloween, Ben, our black lab, dragging his entire dog house across the street in the name of “love”, and the awful-tasting orange marmalade sandwiches the baby-sitter across the street would serve to my brother and I for lunch. Even a drive along the street that connects to Ocean Pines Circle brings back a flood of great memories and fond feelings of “home”.

After having been away from where I called home for a significant amount of time, the return was bitter-sweet. The familiar faces brought an immediate smile and a sense of belonging that I had not enjoyed in a long time. The relationships themselves, though altered now by distance, are still strong. I’m convinced that this sense of familiarity has the power to bring a smile to our face and even an easing of present stresses. Even if specific memories are not recalled or old stories not re-hashed, the collective snippets in time, from years of shared experiences, make us feel welcome and provide that sense of belonging and comfort. The “bitter” part of the visit was knowing that in a few days those familiar faces would become memories, only to be re-lived in my mind.

There is no question, that same phenomenon is what gives us that immense feeling of relief, relaxation and melted-away stress when we arrive back to our actual home after an extended absence. Even walking through the front door after a long, particularly exhausting day at the office can bring a smile to your face and cause an immediate relieving of the tension throughout the body. The feeling of being “home” is unequalled in its power to make us feel at ease.

They say our sense of smell has the strongest memory “database”. A smell from 20 or 40 years ago can immediately bring back a very specific experience or location. Whether you are aware of it or not, you and your family have a distinct “presence” in your home. This becomes apparent when, after a long absence, you first open the front door and are met with that familiar aroma.

Perhaps that is why real estate agents are taught to bake cookies or light a “cookie” candle when having an open house or a showing. What better way to encourage an offer on a home than to immediately associate with the buyer’s fond memories of fresh cookies or family holidays. “I have found that lots of people, first-time buyers in particular, really tend to relax a bit when I use scents in my showings,” commented Badger Realty agent Karla Badger. She continued, “It simply helps them feel more at ease and allows them to more easily imagine themselves making this house their home.”

I’ll leave you today with two thoughts. First of all, be sure and appreciate those around you. The next time you see a familiar face in the market or on the street, make the extra effort to walk over and say hello. I promise you they will be excited to see you (unless they owe you money!) and you both will feel better for the rest of the day. The feeling of connectedness we share with friends and family simply cannot be replaced.

Second, just take a minute to appreciate that place you call home. It does not make any difference if your “home” is a 4,000 square foot mansion at the summit of Mt. Washington (wouldn’t that be cool?!) or a camper in the parking lot of a big-box store. Your home is (ideally) your respite from the world and a place to be completely at ease. If it’s not, I encourage you to take a few steps to create this rejuvenating environment for yourself and your family. You deserve it.

I’ll see you on the sidewalk.

But beyond the normal increase in sales, how do you increase the amount of money you can get (ask?) for your home? In other words, what are those items that buyers are willing to pony up the extra cash for when they are reviewing homes? There are quite a few on our list and a couple that we mentioned a few weeks back when talking about getting the most bang for your buck when doing a remodel. The numbers are from the National Association of REALTORS and represent the average “extra” amount buyers are willing to pay to have that feature already present in a home they are buying.

Central air conditioning topped the list as the most popular item with buyers. Central air is one of those items that are not necessarily a DIY project and not one that many home buyers would be willing to invest in after just buying a home. It makes sense they would be willing to pay more up front to have this great amenity included. While, in NH, we may only “need” air conditioning for those 2 or 3 weeks in August, it is still a treat to flip a switch and stop sticking to the couch.

New kitchen appliances ($1,840) and master bath suites ($2,030) also rose to the top of the heap. Similar to central air, these are not always “simple” DIY projects and buyers would love to have them taken care of prior to moving in. Even if the appliances are not exactly what they may have chosen on their own and the style of the master bath suite is not exactly what they would have picked out, the fact that these are in place and “one less thing” to worry about is apparently worth the extra money.

Speaking of suites, the presence of a walk-in closet in the master bedroom is worth an additional $1,350 to most buyers. Having lived without a closet and subsequently experiencing the bliss of a walk-in closet in my bedroom, I can see the logic here. Since we all tend to have 2 (or more) different “wardrobes”, having access to all of your clothes in one spot is a worthwhile luxury for sure. Even if you don’t have THAT many clothes, the ability to spread out what you do own is great. Coming from a guy who color-coordinates (and hangs) his t-shirts, you can imagine how much I miss that closet!

“We all know that kitchens and baths sell houses, but my experience has also taught me that people love their closets, and that goes for both men and women”, notes Badger Realty agent Maureen Garrette. She continued, “I can’t tell you how many times people have gone right to the master bedroom to inspect the amount of closet space available before walking through the rest of the home. It is certainly a top priority for lots of people.”

Swinging back to the kitchen, we have Stainless steel appliances at $1,850, granite countertops at $1,620 and a kitchen island at $1,370. I can relate to having these already present in a kitchen. The savings of time, energy and mess alone is worth almost any cost. But I’m surprised they made the list considering they are simply “styles” right now and who knows what is coming down the pike. Wouldn’t it be great if those pea-green appliances come back in fashion! All those folks lamenting their 60′s and 70′s era kitchens, all across NH, will be stylish once again!

Lastly were hardwood floors at $2,080. This one makes a lot of sense. Having laid the floor in my house, I can appreciate the amount of work that goes into this project. The strain on the back and knees alone is worth two thousand dollars! And don’t get me started on the mess. Thankfully, I did not have carpet or appliances yet in the house, so the mess was easily cleaned up. I would not want to undertake that project in a fully furnished home while trying to contain the ensuing haze of dust. That sawdust gets everywhere.

The one that tops the list for value, at $5020, is a home less than 5 years old. While this stands far above the rest of the other features in value, it certainly makes lots of sense. The amount of maintenance issues and other potential problems in a newer home are far fewer than those that have seen 10 or more years of weathering or wear and tear. About 40% of buyers noted they would be willing to pay extra for a newer home.

Obviously all of these are subjective. In fact, only the central air conditioning and new appliances ranked as important for more than 60% of respondents. As a seller, it is great information to have and gives you and your agent some data for which items to highlight in your home. As a buyer, you might be able to scoop up a better deal on a home that does not include lots of these items. A basic supply/demand formula will tell you that if you sacrifice a few of these amenities, you might save yourself some money or competition.

One of the hardest parts of big changes like these are the social and personal ramifications. Leaving a group of friends, neighbors and family that have known you for years can be an emotional and trying time. This also tends to play into the final decision to move and can sometimes be enough of a draw to keep you home. The comfort and confidence of familiar faces and the warm feeling of being “known” around town can even keep some from making the decision to move on at all. Others will push through and revel in the opportunity to make new friends and new connections.

Making this type of major decision is not unlike the decision to sell your home and buy a new/different one. Granted, this part of most “moves” is inevitable, but the decision making process still holds some of the very same factors. The surroundings of your home have become familiar and have given you and your family that sense of “home” for as long as you have been there. Uprooting that, even temporarily, is not a small undertaking.

My friend has also taken this opportunity to “cull the fat” in his life. This includes many (most?) of those items, that we all have stored somewhere, that clearly do not fall into the necessity column. I tend to go through this process every Summer and Fall. I love going through my closet and removing those items that I have not worn for the past 12 months. The trick is to go through the same process with the “things” in your basement, garage and other storage spots.

If you have ever moved, which most of us have, you have had the chance to really see and feel all of the stuff you have accumulated over the years. What better time to eliminate those things that have not been touched in a year… or two… or five. While going through this process, my friend found old tools, random hardware, obsolete exercise equipment, “straight” skis! and even a few pieces of furniture that had never made it into the house. All of these items were either sold or given to friends or charity as part of his “cleansing” process.

Don’t get me wrong. I have enough of that “pack-rat” mentality to hear the voice in my head saying “you never know when you might need that”. But at the end of the day, the feeling of cleansing and organizing far outweigh the “what ifs”. The other advantage to this cathartic flushing is you end up with both less stuff to move and less space needed in the new home.

I remember moving from my 300 square foot cabin to my 2 story cape a couple years ago. The most amazing thing was the home did not feel “empty” with my very limited amount of furniture and “stuff”. In fact, it felt clean, open and spacious. A feeling that I thoroughly enjoy both inside and outside the home. Badger Realty agent Kevin Killourie comments “I find families that have filtered through their belongings, prior to their home going on the market, tend to be more prepared for this change. They are beginning to emotionally detach themselves from the house and it makes the transition much more smooth for everyone.”

If this Spring is a time for new beginnings for you and a move is in your future, I’m excited for you. This is a great opportunity for you and your family to re-evaluate your priorities and apply those to all the stuff in your lives. Embrace the change and the opportunity for a new, fresh beginning. You will likely be less stressed during the process and more mentally ready for the big move. Happy Spring and Happy Cleansing!

The NARI (National Association of the Remodeling Industry) has indicated a sharp increase in the number of inquiries and bid requests in the past 12 months. This points to an increased level of consumer confidence in the housing industry. The logic being that an upgrade will either increase the enjoyment of the home for themselves, or increase the sale-ability of the home once it hits the market. According to the NARI, the biggest drivers behind the increased activity was a reviving of postponed projects as well as the continually improving home prices.

There are countless websites and experts available to highlight the projects with the greatest ROI (Return on Investment) as well as those that today’s buyers are most interested in. This weekend, since I’m in the spring sort of mood, we’ll highlight those “green” projects for your home. These are the upgrades and renovations that will increase the efficiency of the home and lessen your consumption of the world’s resources.

One of the easiest steps to take, which even the least mechanical of us can tackle, is to swap out your light bulbs. Going the way of CFL bulbs provides a huge increase in energy efficiency (Using 75% less than traditional incandescent) and longevity (CFLs last up to 6 times longer). Even if you don’t have the motivation to swap out all of your bulbs this weekend, at least go buy a box or two so you are able to start the exchange as the old bulbs burn out. This is a great way to take this step and be easy on the wallet at the same time.

Installing a programmable thermostat is the next great way to not only save yourself some money (about $180/year according to Energy Star), but also offer some convenience. As the days start to warm up a bit and the mornings are not as frosty, you can eliminate the heat altogether. But, waking up to and coming home to a warm house can be achieved with a little adjusting and some quality time with the instructions.

While we’re on the subject of heating (and cooling), I always encourage home builders to install a few ceiling fans around the home. Once you have them, you’ll never want to go without. The obvious benefits of pushing heat back down to the living area in colder months and circulating the hot air in the summer months are reason enough to install these throughout the home. I found, especially with a forced hot air heating system, the ceiling fans were indispensible to a more stable and consistent heat.

Moving from the air to the water, it might be time to replace your tired, old water heater. I will warn you ahead of time, there are loads of options available in order to get hot water to spray out of the faucet. These include tankless units, heat pump water heaters and of course traditional gas or electric “storage” water heaters. The former two are typically about twice as efficient as the latter choice simply because they are only heating the water as you need it. They are not trying to maintain 50 gallons of water at a certain temperature. It is well worth some research on your part and be sure to consider the energy savings each month as you are evaluating them for price.

The last thing to consider are the appliances. I understand this can be a costly endeavor, but this is a great place to increase your home’s efficiency as well as score huge points with the next potential buyers that walk through the door. “Everyone knows kitchens and baths sell the house. If the appliances are upgraded and new it becomes a selling point or, at the very least, they are not a stumbling block for the buyers,” comments Badger Realty agent Kathleen Sullivan Head. She continued, “If they are energy efficient and can save the buyers money in the long-run, that’s just an added bonus.”

As we’ve talked about before, doing any type of upgrade to your home is a great idea. Not only will you increase the likelihood of selling in a timely manner, but you also get the benefit of enjoying the remodeling work for as long as you live there.

You have heard me say this on multiple occasions, but knowledge is key. The more “homework” you do before signing on the proverbial dotted line, the more confidence you will have in your decision. My brother is a car fanatic. Before he purchased his last car, he researched all the vehicles in that class to ensure that this particular model was “the one”. While this is certainly time consuming and, in the end, there really is no “perfect” car, at least he can sleep at night knowing he made the best decision for his particular goals.

That right there, I believe, is one of the most important factors in having confidence in your decision. Knowing what you want. When looking for a new home, it is imperative that you make your list of “must-haves” before you begin your search. This not only relieves some of the post-purchase jitters, but also gives you the confidence to eliminate properties that don’t meet those demands. I also encourage buyers to make this list as concise and specific as possible. If you need or “must-have” a 2-car garage, then don’t settle for a home without one. If you have dogs and they need a back yard to play, don’t assume you will just take them for walks every day and bring them to the park. Set your minimum standard and stick to your guns.

While Ross and Rachel’s infamous “checklist” for dating didn’t work out too well for them, when it comes to your next home purchase, keep emotions out of it as much as possible. Someone’s feelings are not at stake here. This is a big wooden box with a roof within which to store all of your stuff and your family. That’s it. As you are going through this process, make use of the expertise of the agents at Badger Realty and let them help you with your list. Having a third party involved in the process helps you keep a bit of distance between you and the property. If a given house doesn’t make the cut, move on.

It is equally important to take some time to review the finances as well. This may seem like an obvious step, but unfortunately first-time home buyers are frequently surprised at the “true” cost of ownership. With all the computer programs and experts available today, you will have no trouble getting some very accurate numbers regarding the mortgage, taxes, insurance, etc.

Beyond these “fixed” figures, it is also very helpful to get estimates on how you can directly impact your monthly payments. What if you pay an extra $50 per month? What if you come into some money and are able to pay $1,000 directly on the principal. If you utilize an adjustable rate mortgage, how will the fluctuations of the interest rates impact your payments. Getting a handle on all of these variables will help you rest easier in the years following your purchase.

Get a handle on what type of local, not national, real estate market you working within. I have talked at length about the importance of knowing your local real estate market. While nationally, the foreclosure rate might be dwindling and home sales are starting to pick up, what is happening in North Conway, NH? What about Madison or Albany? Every region and every town have their own “micro” real estate market and it is important to understand what is happening on that level. There are even differences between condo complexes in the same town. Get to know your local market and the direction it is heading. This will increase your confidence that you are making the right decision and will also help you in the negotiation process.

Slow down a bit during the buying process and take a closer look at your home inspector. Granted, they are now going to be required to be licensed but not all inspectors are the same. Get some recommendations from trusted friends, relatives or co-workers and make sure you are comfortable with your choice. Also, much like the advice we get when going to the doctor for a check-up, make a list for your inspector before they get there. As you are walking through the home for the first time, you are going to have specific areas of concern. Make note of these and highlight them during the inspection. (You ARE going to be there for the inspection, right?) Also, if you plan to make any renovations, try to coordinate your contractor’s availability during the inspection. What a great opportunity to have two professionals offering insight on the current and future condition of your home.

Lastly, I would simply encourage you to get back in and view the home more than once and bring a second set of eyes with you. A trusted friend or even your contractor can offer a more objective perspective than yours, especially if you have already “fallen” for the home. Typically a second viewing of the home will expose areas of concern that you overlooked the first time through. While this may not be convenient, particularly for vacation home buyers, it is an important step to boost the confidence in your decision.

You have the choice. Hastily make a huge decision and gamble with remorse after the papers are signed, or do your homework up front and move forward with confidence in your choice. Compared to the years of enjoyment in your beautiful new home, the up front work will be quick and painless.

The first mistake we see lots of buyers make (in our humble opinion) is the assumption they don’t need an agent. It is no secret all the pertinent information about a listing can be found online by a 4 year old with a smart phone. Long gone are the days of the MLS “book” and agents hording the listing information like Gollum and his “precious” ring. The value of an agent is clearly not in this data.

Experienced, local agents, like those roaming the halls of Badger Realty, offer so much more than pictures and room dimensions. As your agent better understands your needs and desires they are able to evaluate the homes in your target area and help you focus on the best overall choices. Having walked through many of these homes, the agent can highlight items that don’t necessarily stand out on paper. Because they live, work and play in the Mount Washington Valley, they understand the neighborhoods, traffic patterns and seasonal changes that all have a direct impact on the enjoyment of your new home.

One of the biggest misconceptions we hear from new buyers is they don’t need to pay someone to search the internet for them. This is so true. But if searching the web for homes in your price-range is the only service your agent is providing you, it’s time to find yourself a new agent. The way real estate works in New Hampshire and Maine means that, unless you arrange a “Buyer’s Agency” agreement, the services of an agent, in helping you find your dream home, will not cost you a dime. Having this conversation as soon as you sit down with your agent will put you both at ease (not to mention, it’s the law).

Speaking of dimes, get your “dimes” stacked and counted before you start the buying process. One of the scariest phrases we hear from new buyers is: “Trust me, I have the money”. Typically, those are the folks who really don’t. From the shoes of the seller, when faced with two offers for their home and only one of those has been pre-qualified, which one do you think they will choose? Take the time to get your finances in order and get yourself pre-qualified. It makes the process flow so much more smoothly and shows the seller that you mean business and are not just “kicking tires”.

Another hiccup we see in many new buyers is simply waiting for that “perfect home”. Experienced buyers have learned, long ago, that the perfect home only exists in movies (and real estate commercials!). An experienced agent will counsel their buyers to establish lists of “wants” and “needs”. If they can find a home with the majority of their “needs” satisfied, it might just be time to act. Short of designing and building your own home, there will always be things you will change once you get the keys in your hand. And coming from someone who took that route, there are things you’ll want to change even if you designed the thing yourself. (Hindsight is….well, you know.)

The last item, as always, deals with money. Buyers often assume they can always start low and come up later in the negotiation. This goes hand-in-hand with those new buyers who wrongly assume they should never offer full price. The seller’s emotional attachment to their home is often overlooked by new buyers. They forget that a low offer could be interpreted as insulting and often triggers defensive behavior on the part of the seller. This inevitably leads to a tougher negotiation process and, more often than not, another deal down the drain.

Badger Realty agent, Kevin Killourie, notes “Inexperienced buyers often disregard the perspective of the seller. This is a home in which they have likely raised their children and have lots of great memories. Offering a seemingly insulting price for the home typically brings these deals to a screeching halt.”

While we are on the subject, it is important to note the same error is made by new sellers and inexperienced agents. Asking too high of a price, right out of the gate, will not necessarily offend anyone, but it will certainly eliminate those buyers that know the home is over-priced and likely lead to a home sitting on the market for far too long. Offer a fair price and list your home appropriately. Those are the two best ways to get started on a successful transaction.

Buying a home is a fantastic and rewarding experience. I’m certainly excited to start my home search this Spring and get back into the game. I encourage you to get yourself an experienced agent and make the most of their knowledge. It won’t cost you a thing and you’ll be far more prepared to make a good, solid offer when the time is right. See you out there!