DO HOMES EXPIRE? UNDERSTANDING FUNCTIONAL OBSOLESCENCE

Can a perfectly useful home “expire”? The answer is yes. If you’ve never heard of “functional obsolescence,” now’s a good time to familiarize yourself with the term.

Sometimes a perfectly nice home in fine shape simply won’t sell. Fresh paint, fine curb appeal, a solid neighborhood… and no offers. Sellers are baffled and irritated. “But I’ve been living in this home ten years! There’s nothing wrong with it!”

Often the culprit is “functional obsolescence.”

Never heard of it? You’re not alone. Investopedia defines it this way: “A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed. The term is commonly used in real estate, but has a wide application.”

Functional obsolescence can creep up on a home owner, as when a built-in technological feature is no longer useful. Some homes in the 1970s and 80s had old solid-state intercom systems for communicating between rooms. What was cutting edge then is a retro eyesore now. Built-in entertainment center kiosks or furniture are also a good example of this.

Home owners can introduce functional obsolescence with poor renovation choices. Renovations should always be made with an eye on the possibility that a home will be sold down the line, but occasionally an owner will ignore this. Take, for example, the massive kitchen renovation which takes an unreasonable bite out of the living room.

Inconveniences an owner has put up with over the years can be classified as functional obsolescence as well. If you have a second floor without bathrooms or a bedroom which must be accessed by walking through another bedroom? That’s a design flaw that can bite you when it’s time to sell.

Neighborhoods can introduce a degree of functional obsolescence as well. When an smaller, older home on a large lot is dwarfed by modern homes with more space, the home itself may lose appeal or value in buyers’ eyes.

If you’re thinking of selling or buying, you should be familiar with the idea of functional obsolescence. Either you’ll want to eliminate the problem or you’ll need to realize the problem will be an issue for you should you choose to sell one day.

I can help buyers and sellers see homes with an objective perspective. If you're curious about where your home fits in this market, contact a REALTOR® today.

REASONS TO BUY A NEW BUILD HOME

Like most of the real estate industry, there’s been major growth in new home construction. Here are five great reasons to consider a brand new home.

Design your dream home 

When you’re in on the home building process from the very start, you get to pick the floor plan that ‘s perfect for you and your family. It’s the best way to get the exact home you want.

Save on energy costs

While older homes can have inefficient heating, cooling, insulation, and appliances, new homes are typically built for energy efficiency from the very start. Your utility bills could be dramatically lower.

Community amenities

If your new home is part of a planned community, you can take advantage of amenities like swimming pools, fitness centers, and other recreation areas that might not be available otherwise.

Fewer worries, fewer surprises

With a new build, it’s less likely that you’ll run into maintenance and repair issues compared to what you might experience with an existing home.

Enjoy it from the start

No need to endure the frustration that might come with a fixer-upper. With a new home, you can enjoy your new space the day you move in.

5 ESSENTIAL QUESTIONS TO ASK BEFORE YOU RENOVATE

Upgrading your home can upgrade your life… but how do you know when renovating is the right choice? Ask yourself these important questions before picking a project.

Over time, almost any home could use an upgrade. Not only is wear and tear an issue, but our needs change as we do. Birth, death, marriage, the kids going off to college… all can have a profound impact on the utility of our home and the pleasure we take in it. Home renovation can be an excellent way to improve your quality of life, but is it always the best choice? 

By asking yourself these five essential renovation questions, you can gain real insight into the right decision.

1. What are your renovation priorities?

Yes, if you could do it all, it would be great. But odds are you won’t be able to do it all. So brainstorm all of your renovation desires and write them down. Next, rank them by order of importance. Some will be large and some will be small. Consider your budget. Would you be happier with one large revision, or would several small ones be better? Prioritize to clarify!

2. How disruptive will the renovation be to living in your home?

Understanding your appetite for disruption is important. Some renovation projects are minor and may take a day or two. Others could drag on for months and months. What are you willing to tolerate?

3. How will the renovation impact the home’s balance?

Major renovation projects can throw a home’s feel, flow, or look out of line. If you put a commercial-grade, ultramodern kitchen, will the nearby living room look shabby or antiquated? What if you add a bedroom but you only have one bathroom?

4. How long will you enjoy the renovation?

People typically renovate when they’re planning on staying in their home. Which direction is your neighborhood heading? Are you planning to downsize in a couple of years? A renovation may be overkill if you don’t think you’ll stick around long.

5. Will you recoup your investment?

Happiness with your home should be your top priority, but before you renovate you should understand that a major renovation isn’t a guarantee that you’ll get your money out when it’s time to sell. This may or may not be a factor for you.

Your REALTOR® will be perfectly happy to walk through these questions with you. Renovating may be the right choice, but sometimes only a move will do. Either way, your agen is here to help.

SPACE HEATER SAFETY TIPS

Many people write-off space heaters as dangerous, expensive, inefficient appliances for keeping warm. In truth, they can be a good idea from time to time when used well.

The humble space heater gets a bad rap, but when used correctly it can actually represent a good option for taking the edge off the winter chill. 

Here are some tips about how to safely use a space heater and when it’s a good choice:

Are you heating a whole house when the family is concentrated in the living room? Turn down the central heat and use a modern space heater rather than heat the empty rooms.

• A space heater can be a wise choice when you live in an uninsulated or poorly insulated home.

• Avoid unvented combustion space heaters. Instead, look for electric space heaters, preferably with a fan to circulate the hot air.

• Never plug a space heater into an extension cord.

• Maintain three feet of clear space around the heater in all directions. Be aware of loose rugs, blankets, or other potentially flammable objects nearby.

• Unplug your space heater when no one is around to keep an eye on it.

• Do not use a space heater in a damp room (i.e. bathroom!) unless it is specifically designed for outdoor or bathroom use.

• Don’t hide the space heater electrical cord where it might get torn or degraded under foot. Run it where it is visible, but does not create a tripping hazard.

• If you’re shopping for a space heater, consider this handy Consumer Reports buying guide: http://www.consumerreports.org/cro/space-heaters/buying-guide.htm

By the way: Heating and cooling a large home after the kids have moved out can be a waste of your retirement dollars. If you’re thinking it might be time to downsize (or right size!) your home, get in touch with a REALTOR® today!

SUPERIOR WAYS TO LOWER YOUR HOME INSURANCE PREMIUMS

Did you know there are simple, proven ways to lower your home insurance premiums? If you’re looking for ways to trim your budget this year, consider these tips.

Homeowners insurance is vital for protecting your investment. It’s also required by lenders holding the mortgage on your home. For some reason many homeowners overlook ways they can save money on their premiums. 

Shopping around is a good idea, but much like auto insurance, there are many simple things you can do to impact how much you pay annually to protect your home.

Raise your deductible.

Do you really need a low deductible on your insurance policy? Many people can absorb the hit if they go from a $500 deductible to a $1000 deductible, and in some cases this simple move can reduce rates up to 25%. Deductible can have a dramatic impact on your premium, so ask your company rep to quote you the difference.

Don’t insure for your home’s purchase price.

Remember, you don’t have to re-buy the land your home is on if you have to rebuild. If you’ve asked for coverage which includes the land cost as well as the structure cost, you could be paying far more than you need to pay to protect your home.

Retired? Seek a discount.

If you’re over 55 and you’re retired, your insurance company may be willing to drop your rate by as much as 10%. Retired folks are home more often. This can help reduce burglaries and provide an early warning system for fires.

Ask for a loyalty discount.

If you’ve been with your insurance company for at least three years, call them up and bring this to their attention. Let them know you’re considering shopping for a new policy, and you’re curious if they can extend you a discount for being a loyal customer. Savings can range from five to ten percent.

Adjust your coverage for possessions.

You may be insuring for more than you own. Certain high-end computers and other luxury goods may depreciate over time. If the limits on your policy far exceed the value of your possessions, make changes to your policy. The difference can add up. (Do this every year.)

Factoring in insurance costs is an important part of determining how much home you can afford. For more information on how different types of homes can have different insurance costs, talk to a REALTOR® today!