Rethinking Home

Stay Home, Stay Home, Stay Home.  We’ve all heard this a lot over the past few months.  Many of us have been doing our best to cut down on our constantly moving lifestyles.  We are in unchartered territory, and most of us don’t like it.  We don’t like not having control, not knowing exactly what’s going on or what to believe, and not knowing when this will end.  Many mornings I’ve awoken thinking the world is the way it was only to discover it isn’t just a bad dream – it’s the new reality.  And there are some scary predictions out there that we haven’t experienced the last of an errant virus.  The last two months of the new normal has led many homeowners to rethink the way they live in their home.  It has now become an office for working at home; a school for children; a gym to stay in shape; and a place for recreation.

This repurposing of our homes has people evaluating whether their home still meets their needs or if some changes are necessary.  In some cases, adult children have moved back home, and, in others, there are aging parents who have moved in for the first time.

Staying at home and sheltering in place has been deemed necessary, but how much togetherness can one family take and how long is it going to last?   I’m not much of an alcoholic drinker, but if my three kids were still living at home right now, I’d be YouTubing how to make alcoholic beverages that taste like soda pop. “Temporary” is stretching into longer than expected and even when vaccines and treatments are discovered, will things really go back to the way they were?  As states begin to open, are we doing that right?  Will we be needing to go back “home” again if Covid-19 cases start to spike a second time around?

Home is a place to call your own; to raise your family, share with your friends and to feel safe and secure.  Covid-19 has changed the scope of feeling safe and secure at home and may now be considered a sanctuary of safety more than ever before.

Many of the chief economists in the country feel that real estate will likely lead the country out of this recession.  The housing market is experiencing low inventory and has for almost a decade.  Building has not kept up with demand and prices of existing homes have continued to go up.

With 30-year mortgage rates at close to 3.0% and prices expected to continue to rise, an investment in a home can fit your needs and show returns in satisfaction, comfort, enjoyment, and monetary value.

If you are going to be spending more time in your home for all the reasons mentioned, maybe now is the time to consider finding a home that better suits your needs. It can be done in a responsible and safe manner using property videos to screen, masks, hand sanitizer, removal of shoes, driving in separate cars, and using paper towels when touching anything inside of another person’s home.  We don’t want to take germs in and we don’t want to take germs out.  People still have to move to and from, and real estate has been a very reliable investment while the stock market has wildly fluctuated.

The upside to all of this is that many have rediscovered their children, spouses, gardening, pets (adoptions are literally through the roof – pun intended), writing, visiting by phone, reading, TV, walking, biking, hiking, and themselves.  At the center of all this is the HOME.  It’s a very important place right now because you are important to many.  Take care!

Finally! I don’t have to hide my dirty dishes!

The Closed Kitchen Makes a Comeback
By KAYA LATERMANMAY 20, 2016

Jennifer McAllister-Nevins and her family in their TriBeCa loft’s enclosed kitchen.CreditLinda Jaquez for The New York Times

During a New Year’s Eve dinner party several years ago, fun and laughter quickly turned to anguish for Jennifer McAllister-Nevins. The pipes in her kitchen were suddenly blocked. And because she lived in a TriBeCa apartment with an open kitchen, all the guests got to witness each chaotic moment as the sink backed up.
It’s no surprise that Ms. McAllister-Nevins, who loves to entertain, now lives in a different TriBeCa loft, one with an enclosed kitchen.

“Sometimes I’m not as organized as I hoped, and other times there’s just a mess,” she said. Her next event at home is a party next month for Savor, a company she owns with a friend, which makes stylish keepsake boxes. “I like having the option of having your kitchen be a private or public space.”

Open-kitchen floor plans have dominated home design for years, especially in new construction, and kitchen size has expanded as a result. Reviewing average kitchen size in a dozen new developments and apartment building conversions before 2000, the real estate firm Engel & Völkers found that the average kitchen accounted for about 6 percent of the total square footage of the apartment. But in comparable developments after 2010, the agency found that as kitchens have been opened up to adjoining dining or living rooms, the average kitchen now takes up about 8 percent of the entire apartment.
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Pocket doors separate the kitchen from the rest of the entertaining space at an apartment in the Greenwich Lane, a new condominium complex in Greenwich Village. CreditLinda Jaquez for The New York Times
Kitchen size aside, the pendulum has started to swing back toward enclosed kitchens. Several new residential buildings in Manhattan have offered separated kitchens — a nod to prewar apartment design, but also to the growing demand from potential buyers looking for separate cooking and entertaining spaces.

“I grew up in the Upper East Side and never saw an open kitchen,” said Edward Yedid, a partner of Grade New York, an interior design and architecture firm.
When designing the Twenty 1, a nine-unit condominium at 117 West 21st Street in Chelsea, Mr. Yedid decided to separate the kitchens because the units were all floor-through, with space to incorporate walls and hallways. He chose to use sliding solid oak doors in the kitchen in six units, so the residents would have “control on how they used the kitchen,” he said.

Many units at 30 Park Place will have separate kitchens, as seen in the sales gallery.CreditLinda Jaquez for The New York Times
Mark Kolodziejczak, a partner of Studio Tractor Architecture, a firm hired by Ms. McAllister-Nevins to renovate her current TriBeCa loft, said he has long discussions with clients about how they foresee using the kitchen. Do they prefer having a kitchen that will be the social center of the home or something more muted?

While the kitchen in Ms. McAllister-Nevins’s new apartment was separate from the entertaining space, it did not have doors, so she decided to install two large pocket doors, a design accent that seems to be gaining popularity. Of the roughly 450 respondents to a recent survey by the National Kitchen and Bath Association, a trade group made up of kitchen and bath designers and suppliers, about 70 percent said they used pocket doors as part of a kitchen remodeling or new construction project in 2015.

Bryan Cho, an executive vice president of the Related Companies, said his company had not built a residential building with a closed-kitchen floor plan since the 1990s. But demand for larger rental apartments for families was high, he said, so Related included 45 three- and four-bedroom apartments in the Easton, a high-rise rental at 205 East 92nd Street with 230 units. All these larger units will have closed kitchens. Some will have open entries; others will have space for a small table, or a dining alcove attached.
“I think some people are attracted to a more formal way of life, so maybe the trend is shifting between having a big open space to cook and entertain to having some separation,” Mr. Cho said.

At an Easton model unit, there is a separate eat-in kitchen. CreditScott Frances
The ability to have a closed kitchen often is dictated by the available amount of space, said David Penick, the managing director of Hines, a developer. If you live in a small studio or one-bedroom, it is wise to put the refrigerator and stovetop on one wall, and incorporate a pass-through or island as extra countertop or dining space.
But if you have more room, you can get creative, said Mr. Penick, whose company is a developer of 53W53, a condominium tower that is rising next to the Museum of Modern Art. More than 90 percent of the units in the building will have separate kitchens that can be closed by a floor-to-ceiling automatic sliding door, he said.
The extra wall space created by enclosing a kitchen opens up more design options, Mr. Penick said. “There’s more storage, more counter space and room to populate kitchen-specific designs.”

Closed kitchens also work well for those who entertain a lot and hire caterers and private chefs. “You don’t want your dinner party guests to walk through the kitchen and see what’s being served,” said Phillip Mendlow, a senior vice president of Bluerock Real Estate, which developed the Charles, a 27-unit condominium on the Upper East Side where all apartments come with closed kitchens.
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Most kitchens at 53W53 can be closed by floor-to-ceiling sliding doors, like this one in the sales gallery.CreditLinda Jaquez for The New York Times
Some developers are also testing out hybrid kitchen floor plans. Ian Schrager, a developer who recently broke ground on 160 Leroy, said all of the 49 condo units will have two fully equipped kitchens. The 300-square-foot enclosed chef’s kitchen can be closed off by a sliding door, while the adjacent open “social kitchen” is anchored by a large marble island and countertop.

He said he took the idea from his own home, where he custom-installed a second, “dirty” kitchen. “I personally don’t mind when people cook and wash dishes in front of me,” Mr. Schrager said. “I like the social aspect of an open kitchen. But some people don’t like that.”
The two-kitchen concept isn’t new. Many farms and suburban homes traditionally had second kitchens, often called summer kitchens, so the heat from the stove didn’t raise the temperature in the entire house during the summer. In a stand-alone hut on the property, or in a small room in the back of the house or in the basement, they were used for butchering meat and making and preserving jams.

Other architects are creating closed kitchens that are adjacent to family rooms, not formal dining rooms. When designing the residences at 30 Park Place, Daniel Lobitz, a partner of Robert A.M. Stern Architects, said incorporating flexibility into a floor plan was important. “We tend to like clearly defined rooms, like a large foyer, hallways and rooms you can’t walk through,” he said. “But it’s important that different families can live in the same building.”

Of the 157 units in this downtown building, only 10 homes will have open kitchens; 55 will have kitchens that open up to family rooms; 72 units will have separate kitchens without an eat-in component; and 20 units will have separate eat-in kitchens.
Julie McAllister recently moved into a four-bedroom apartment at theGreenwich Lane, a condominium complex in Greenwich Village. She likes the option of closing the kitchen off from an adjacent office, but the kitchen also opens onto a family room, an area used often by her two young children.

“It’s great to keep the noise and smells inside the kitchen, especially when my husband is using the office,” she said, “but I like the fact that I can see my kids play in the family room.”
A version of this article appears in print on May 22, 2016, on page RE1 of the New York edition with the headline: Keeping the Dirty Dishes Hidden.

Homeowner’s Insurance – things to consider

 

If you took out a mortgage on your home, the lender required that you carry homeowner’s insurance.  If your home is in a flood zone, they also required you carry flood insurance.

But something often NOT mentioned is taking out riders on your homeowner’s policy, specifically sewer backup and sump pump or earthquake.  The cost to add these riders is not expensive, and given some of the torrential rains we’ve had recently, with folks experiencing electric outages (causing sump pump failure if no battery backup) and/or sewage backups through the basement drains, if you do not have this rider on your homeowner’s policy, the likelihood of your homeowner’s policy covering the damage is low to non existent.  Costs for each rider vary by policy, but I’ve heard they can be as low as $15 – $60 per year.

Here in Iowa, we are north of an earthquake fault line, the New Madrid Fault Line (https://en.wikipedia.org/wiki/New_Madrid_Seismic_Zone).  But should a major earthquake occur on this fault line, we will certainly feel the effects here in Iowa.

Insurance is a balancing of risks, with the lower the risk or misfortune, the lower the premium.  Sump pump failure and sewer backups, however, do not carry high premium costs, but the clean up can be expensive and icky.  Contact your homeowner insurance company and see about adding this coverage if you’d like to minimize this risk.

To Remodel or Not? That ’tis the Question!

All the DIY shows on TV can give some homeowners the itch to make changes to their own home, because not everyone is up for flipping or flopping.  (Most prefer to fix and then flop in their newly remodeled home!)  In the Iowa City area, we have a shortage of build-able lots for people to build on where they can select their own builder.  With the high cost of land and developing that land for building homes on, the developers tend to hold onto the lots/land so they can recoup their initial development costs.  The down side is that you are not able to buy a lot and pick your own builder.  We’ve seen a lot of frustration with this from people who’d like to build a new home.  And so – remodeling a current or older home has become much more prevalent.

One common experience most homeowners can agree upon after completing a remodeling project is that it costs more and takes longer than expected. It doesn’t really matter that you researched, planned, and received multiple bids, it will, invariably, cost more and take longer than you originally anticipated.96303159-250.jpg

Replacing floor coverings or painting is a project that a homeowner can easily get bids and contract with the workmen directly. A new level of complexity occurs when the project involves more specialized work for a remodeled kitchen, bath, wet bat, home theater room, retaining walls sheltering a cool new pond, four season rooms, etc.  Then you’re looking at city inspections, electricians, plumbers, drywallers, etc.

When you start tearing out some things, you may encounter some unexpected construction that needs to be corrected/fixed in order for you to proceed.   Another common occurrence to anticipate is that once things are torn up, you get another great idea which will change the process a bit more.  Be prepared for the ride-

But your home is your investment.  And in order to get the best return on your money, you do need to maintain said investment.  Bit by bit, you can change out light fixtures, flooring, paint, dented garage doors, and sand and restain/paint dog damaged window sills.  (Maybe that’s only in my house…)  Each day we’re usually so eager to “just go home” that we don’t look at our homes with a critical buyer’s eye.  And that’s ok.  But every so often, we need to critically look at our homes and see/smell what others see and smell.

Talk with others, and try to see some remodeling results when you think about who you want to use for your project.  Some contractors will run the remodel as if it were a new home construction, and take over the job so you don’t have to do all the scheduling.  Some of you are handy enough that you can contract out the licensed jobs, but take care of other aspects.  Either way, remodeling looks as if it’s here to stay.

Who Sold My Home?

“Who, exactly, sold my home?” is a question many sellers have asked. There are probably two people both claiming to have sold the house: the listing agent (who worked with the sellers) and the selling agent (who worked with the buyers).

Technically speaking, the selling agent sold the house as they wrote the purchase agreement and it was their clients who submitted the accepted offer. The listing agent worked with the sellers who signed the listing agreement. Two separate actions, two separate contracts.

In the real estate agent world, both sides will claim to have sold the property. The statistics compiled by our Iowa City local Multiple Listing Service (MLS) give credit to both sides for the sale of home. So if a home sells for $350,000, the listing agent as well as the selling agent will both receive $350,000 credit when the statistics are compiled for the listing and selling volume.

Personally, however, I tend to draw the line regarding bragging rights. I think listing agents shouldn’t claim that “they sold” the home when referring to that house. They should say they were the listing agent – which as any listing agent can attest – is no small feat. There is so much work that goes into listing a property to market it to its full advantage: from staging to pictures, to text descriptions, to promotional materials, to open houses, to providing neighborhood covenants, to having complete paperwork, to negotiations, to getting everything done in order to bring the transaction to a successful close. It’s a lot of work to list a home. And if it’s not done well, the sale of the home is hampered. So a good listing agent will take care of so many details (that no one is really aware of) so the home will be positioned to sell.

The selling agent, however, has often worked with his/her buyers extensively, having shown them many. many homes. The selling agent should be listening to their buyers, trying to find just the right home – the agent should have no personal agenda. Many hours can be spent trying to sort through the homes on the market in order to find the right fit. After the contract is written and accepted, the agent guides the process through inspections and financing. There is a considerable amount of work that the agent must perform to make sure the buyer is protected and their interests are represented and negotiated.

Knowing the housing territory in and around the Iowa City area is the job of both real estate agents. In order to properly list a home, the listing agent should know what the heck is going on. In order to advise the buyer correctly, the selling agent needs to know what the heck is going on. That’s the agent’s job – to keep the train on the right track, making sure that there are no derailments.

If you have any questions, please let me know. We real estate agents learn something new every day, as no two homes or home sales are ever the same. That’s the beauty and complexity of our world – and we love it!

Springing into Spring!

With the new year just beginning, many are gearing up to buy and/or list this spring of 2016. And now is the time to start preparing! Getting ready to sell a home is, for most, a royal pain. We do not live in our homes in the condition they need to be in when we sell our homes. While the Iowa City market is strong, it is still a competitive selling market – you will have competition for buyers.

Here are some helpful hints to get your home ready to sell.
1. Clean, clean, clean. This includes closets, inside cupboards, cold air returns, the tracks of sliding doors, the caulk around tubs and showers. Every little nook and cranny will be noticed.
2. Make sure your home is in good repair. If you’re selling because you think you need a new roof, then the buyer and their lender will also wonder about your roof. Most every buyer has a home inspection. So head off the issue with a roof inspection of your own first. If the roofer says you need a new roof, get a second opinion. If the second roofer says you need a new roof, ask how much life is left on your roof. If the life span is less than 3 years, any buyer’s lender will also ask for a new roof to be put on before the buyer is allowed to buy. Every lenders major premise is that the buyer will default and they’ll get the home back. They do not want a home back which needs a new roof.
3. If you have a wood burning fireplace, get it cleaned and inspected. If you haven’t had your furnace and cooling systems recently serviced, get that done. These are simple maintenance items every home owner should be checking. With regular maintenance, most HVAC systems (heating and cooling) can last a long time.
4. Touch up paint, or repaint. Grab a recent copy of a Pottery Barn, Crate and Barrel, or Better Homes and Gardens. Look at what color schemes are current. Buyers like “fresh.”

The above are a start – I could go on and on about what buyers are looking for. If you’d like me to continue and help you get your home ready for the spring market – give me a call or message me.

If you’re a buyer looking to purchase a home in 2016, there are some things you can also do to make the process as smooth as possible.
1. Visit with a lender and get pre-approved. If you’re not sure who to use, send me an email at stlarson77@gmail.com and I’ll see where you currently bank and make a recommendation. My first advice will be to use a local lender – you’ll find other interest rate deals out there, but high closing costs will eat up the difference between internet financing and local financing. I’ve never had a client say, “I wish I hadn’t gone local.” but I have had many wish they had.
2. Start to think about your wish list for a home, and divide your thoughts into what you “need” and what you “want.” There is a difference. smile emoticon
3. When the world is your oyster, it’s hard to make a decision. When you don’t have to move but think you might want to move, it’s hard to make a decision. One simple rule I believe in when it comes to home buying is: if you feel like you’re hitting your head against a brick wall trying to make something happen, you’re hitting your head against a brick wall and should stop. When everything just seems to be falling into place, and you’re nervous and not sure why, go with the flow. I guess I’m a bit of a fatalist, but my 20 years of experience has proven this philosophy over and over again.
4. It won’t make any difference to me what home you buy – I have no agenda other than … it needs to be the right house for YOU. The more you say, the more I’ll hear what it is that you want. Sometimes buyers aren’t sure what they want. They think they know, but after listening to them, I find out what it really is that they want. Read my reviews on Zillow.com.

I work very hard in this real estate profession, because I really love what I do. I’ve met some of the most amazing people and have helped them either sell their homes and move forward, or buy a home and settle down. When you’re ready, I’ll do the same for you.

Take care,

Terri

To Rent or to Buy? That is a great question!

 

As a young pup REALTOR®, I watched and helped parents from Chicago, in particular, buy properties for their children to live in as they attended school.  I’ve also watched and tried to assist adults get out of the renting cycle.  For some reason, it seems so much safer to rent than to buy.  When I ask what makes a first time buyer so nervous, they generally say the same thing:  I’m afraid I’ll lose money when it’s time to sell.  So let’s take an honest dollar to dollar look at the renting versus owning proposition.

 

Let’s suppose a person is paying $750 per month in rent for a two bedroom condo, with plans to live in the rental unit for at least three years.  The total amount paid in rent is $27,000 over that three year period.  There are no property tax or interest payment deductions.  At the end of the lease period, the renter walks away free and clear after paying $27,000 in rent.

 

Contrast this to a person who purchases a 2 bedroom condo for $110,000.  At 4.0% interest and a 100% mortgage, the monthly payment breaks down as follows:

$525 Principal and Interest

$103 Property Taxes

$ 67  Homeowner’s Insurance

$ 90  Mortgage Insurance

$785/month  x 36 months equals $28,260 spent in house payments

At the end of the third year, the principle balance will be $103,948, and the approximate interest deducted on income taxes each of the three years would be $4,272 per year, for a total of $12,816 over the three year period.  You’d also be able to deduct property taxes each year, roughly $1236 per year, $3,708 for the three year period.

 

The difference between three years of rent and three years of house payments is ($1,260).  Adding together the interest and taxes paid over the three year period, $16,524 times 25% tax bracket equals a savings of $4,131 in Federal Income Taxes paid.

 

Safely assuming the seller sells in three years for $115,000, minus the principle still owed of $103,948, the difference is $11,052.  Approximate costs to sell, including the REALTORS® commission equals $7490, and difference from $11,052 is $3,562.  Add that to the $4,131 in income tax savings and over three years (and subtracting the $1,260 difference between rent and house payments) and the benefit to own is approximately $6,433 compared to having spent $27,000 in rent with no benefits.  Using this apple to apple scenario, there’s a $33,433 swing between owning and renting.  The housing market would have to turn so upside down to lose $33,000 on a $110,000 condo, that selling a condo would be the least of anyone’s problems.  Even in the down market of the last five years we didn’t see that type of decline.  And there’s plenty of room in this swing for minor household repairs or improvements.

 

Housing is an emotional subject, but as a REALTOR® it’s my job to look at real estate from the perspective of you investing your dollars.  Just as we look at what is the best use of the land, which is under us all, we also look at real estate as an investment – an investment in normal times that does not depreciate but typically appreciates.

 

My business survives because of you:  your kind words and your wonderful referrals.  If you personally know of anyone thinking of buying or selling, send them my way and I’ll take good care of them!  If you are in contact with people at your workplace who are in contact with people newly moving to town, I’d appreciate you putting my name out there.  I work hard to earn your trust and respect, and like anyone else, I appreciate loyalty.  You’ve been great!

 

As always,

 

Terri

Referral for Realtor Terri Larson

Terri was a great help when I was moving to the Iowa City area! She was professional and very knowledgeable about the area and homes. I was looking for an older home and she knew an amazing amount of information on how the homes in the area were built. She knew what to look for structurally and was aware of problems, particularly in basements. I had to handle a lot of the process long distance and every t was crossed and i was dotted before closing. It was by far the easiest closing I have ever been a part of. I would highly recommend Terri Larson for you real estate needs!

Sincerely,  Janet D.