Home owners who wish to sell their homes have little problem finding good representation. They simply select the agent and/or company they feel will best market their property. There are few "open listings" accepted today, so the home seller usually signs an "Exclusive Right to Sell" agreement with the listing office. This means that the company will represent the sellers' interest and obtain the best possible price and terms for them.

Traditionally, representation has been hard to find for home buyers. Usually, they have walked into a real estate office or called about an ad or yard sign NOT knowing that the company already was under contract to represent the sellers of those listed properties, They worked with an agent as the agent's customers and received no representation or services to help them obtain a good deal.

This changed, somewhat, a few years ago when state laws began to require real estate agents to disclose to consumers exactly whom they represent. The Agency Disclosure Form must be signed by the consumer as early as is reasonably possible. Many, however, are eager to get out and view homes or condos and accept the fact that the agent showing them properties represents the sellers of all the properties they will be shown.

Some local offices are now beginning to offer limited Buyer Representation. This process can work if they are showing property listed by other real estate companies. In that case, they can provide a variety of services and help the consumer buy the property at the best possible price and terms. The best trained Buyer Representatives hold the Accredited Buyer Representative (ABR) designation.

However, if agents wishes to show properties that are listed by their own companies, then they become "Disclosed Dual Agents", Both the sellers and buyers are informed of the dual agency situation and the agent from that point on is not allowed to give help to either party which would potentially harm the position of the other. So both the buyers and sellers become responsible for representing themselves.

One of the more recent, and fastest growing trends in real estate is the concept of Exclusive Buyer Agency Membership in New Hampshire. The New Hampshire Association of Exclusive Buyer Agents (http://www.nhaeba.org) and the National Association of Exclusive Buyer Agents (http:www.naeba.org) has grown steadily since 1994. The member companies offer Exclusive Buyer Agency services and accept no listings. The buyer is assured of full representation 100% of the time, no matter which company has listed the property, or, if the property is being sold directly by the owner.

Attorneys and title companies can provide valuable services when it comes to reviewing the purchase and sale agreement, performing a title search, obtaining title insurance, and handling the paperwork required at closing. They also forward the state transfer taxes, supply consumers with a complete closing statement, and record the new deed. However, attorneys are sometimes not familiar with the real estate market and might not be able to tell the buyer if he/she were paying $20,000 over market value for a given property. In the State of New Hampshire, unless you specifically hire an attorney to represent your interests, the attorney or title company is hired by the lender to represent the lender's interest not those of the buyer.

A new book on the market: Bought, Not Sold by Ray Wilson is an in-depth study of the real estate industry as it has traditionally operated and how it is now changing to provide quality service to consumers. Some contents may not apply to all areas but it is a good tool in general. This book is available at the library, White Birch Booksellers, and the Buyer Representatives office. It is highly recommended to anyone who is contemplating buying real estate. Unfortunately, the old saying, "let the buyer beware" still applies to real estate. So, who is representing you? Be aware!

Many of you who are reading this are thinking, "I just can't afford insurance". Well, even if you just rent, you probably have personal property which would be expensive to replace if your place was destroyed by fire. Most of us can't afford to be without basic insurance coverage. Several years ago, I had a friend who was renting a cabin from another friend. He left one morning to find out later that everything he had in this world was lost in a fire that completely destroyed his cabin. He was a music teacher and among his possessions were a collection of music, not to mention, all of his clothing, except what he wore to work that day. The "landlord" lost a beautiful cabin, as well. Neither individual was insured. I'm sure that many of you know of a family that has lost everything.

Many of us who purchase a home are required to have insurance coverage from the moment we sign the papers at closing. The premiums are often paid from our mortgage company's escrow account. There are choices that we can make, though, beyond purchasing a basic homeowner's policy. If you are willing to accept a higher deductible of say, $500, or even $1000, you can save money by lowering your premium. The typical deductible is now around $250. You should know what is, and is not, cover by your policy. For example, most policies cover the addition of a detached shed or outbuilding. But what if you add a room to your house? You should check with your agent to be sure and advise him/her of any change to your property.

Condominiums have master policies which cover the buildings and provide liability coverage for the common areas. If you own a condo, you should have a policy to cover your personal property and the inside of your unit in compliance with your association's bylaws. The usual practice is to purchase the individual policy from the same provider which has the master policy. This way, should a loss occur, there isn't a dispute about which company or policy applies.

The coverage on personal property has definite limits. You recently inherited a house full of antiques and sold your old furniture at a yard sale. The coverage on your current policy may not be adequate for the antiques. Suppose you have jewelry valued at $20,000 or a collection of porcelain figurines, or maybe a gun collection? Many of these items of personal property are limited to $500 or $1000 in your insurance policy and to cover everything you have may require a "rider". Personal items are even covered away from home if lost or stolen.

You may have heard of "Replacement Coverage". This is more expensive insurance but provides you with a new kitchen range, even if the one destroyed was 15 years old (minus your deductible). With conventional coverage, you would only receive the actual value of item lost.

Liability coverage is a part of every homeowner's and renter's policy. It covers others for bodily injury and property damage that you can be held liable for, at your home. Situations such as your dog biting the neighbor's kid would fall into this category. In many ways, this can be the most important part of your coverage. You only need to check the paper or watch the news on TV to know how many people are being sued for personal action or inaction. So, you may want to think of anything on your property which may cause harm to others.

If you have a loss, it is a major help to have a list of your personal items. Receipts, serial numbers, descriptions, appraisal certificates are important when working with an insurance adjuster. It's a good idea to keep these documents in a fire-proof container, a safe-deposit box, or at another location. The high-tech approach to this is to use a video camera to make a tape of your home and all of its contents or keep a computer file on a floppy disk. This can be a tremendous help in remembering everything, especially after tragedy has struck. If you have damage to your home, it's also your responsibility to help prevent further loss, for example, by turning off the water if there is a broken pipe.

To sum up, it may be a good idea to contact your insurance agent for a review if you haven't had one in a couple of years. This way, you can rest assured that you have adequate coverage for both your home and personal possessions. You also might get out your policy and read it. I plan to read mine one of these days, if I ever get the time!

(Help in preparing this column was graciously accepted from Ellen MacDonald of Pike Conway Dahl Insurance Agency and my brother, Roger "Hurricane" Davis of North Carolina).

In the November issue of Realtor magazine featured the "1999 Cost vs. Value Report" for home remodeling. It contains some very interesting information, which I felt would be helpful to both buyers and sellers. The report was a cooperative effort with Remodeling magazine that focused on 11 of the most popular remodeling projects and estimated the expected resale value of each.

When selling in a hot real estate market, the owners may need to do little more than give the house a really good cleaning and set a realistic price. But when interest rates edge up and a property languishes on the market, owners wonder if remodeling the kitchen, bathroom, or investing in some other project, will sell their house. The report revealed that the return on investment depends on the house, neighborhood, and region.

As in past years, it was reported that minor kitchen remodels and bathroom additions provided the highest return on investment. In Nashua, for example, a kitchen remodel that cost $8136 had an estimated resale value of $7121, or an 88% return on investment. These figures were based on a project which included: refinishing existing cabinets, installing an energy efficient wall oven and cooktop, laminating countertops, installing a mid-priced sink and faucet, new wall covering, resilient floor covering, repainting, and installing new raised panel wood doors on the cabinets. Such a project may be the factor that finally sells a house.

Overall, remodeling projects do not pay back dollar-for-dollar at the time the house is sold. Homeowners should make the decision to remodel or add a room with the idea of enjoying the addition or upgrade, themselves. Deciding to plow large sums of money into the home with the expectation of selling, should be made after consulting with an experienced real estate agent.

Maureen Westrick, a local architect who specializes in remodeling projects says, "the older the house the less likely I would be to recommend remodeling". Many who are buying antique structures are looking to restore and might actually be undoing the recent work. However, if the house is less than 40 years old, that dated or inefficient workspace may need real help. In that case, it may need more than just new cabinets and surfaces. She points out that a thorough review of the "overall plan" of the kitchen or bath and adjacent spaces may lead to exciting new layouts which enhance today's lifestyles. Maureen may be reached at 356-4899 for a consolation.

The full report includes statistics for kitchen remodel, bathroom addition, bathroom remodel, family-room addition, major kitchen remodel, master suite addition, attic bedroom, two-story addition, window replacement, deck addition, and home office. Each section of the report also includes helpful hints for each project.

Space in the Realtors Corner is limited, and reprinting the report is forbidden. However, I will gladly order published reprints of the full report for you at cost. Reprints are available at $7.95 plus shipping and handling. Discounts are available on orders of ten or more copies.

I can remember just graduating from college and filling up my new Volkswagen for three dollars. Those days are long gone and so are inexpensive oil prices for home heating. A featured article in the June, 2004, issue of National Geographic Magazine, "The End of Cheap Oil", portrayed a future of concern for oil consuming and developing nations. The article came before our current $50 per barrel oil prices which are now filtering down to consumers as higher prices for gasoline and heating oil. Local dealers are now quoting prices of $2.15 for oil, $2.25 for propane for home heating, as prices continue to rise. Added to this, is the fact that we all use thousands of products manufactured from oil-based polymers and manufacturers are vying for their "share" of the oil production "pie"..

If the trend in energy costs continues, I can see mortgage companies including heating costs in their monthly evaluations of owning a home, just like principal and interest payments, taxes, and insurance. We recently viewed a home on the market that consumed 1000 gallons of heating oil, in addition to four cords of wood last year! To put this into perspective, an automobile driven 15,000 miles a year, getting only 20 miles to the gallon, uses 750 gallons of gas. So, some of the larger, inefficient homes are beginning to resemble large gas-guzzling SUVs!

Energy Efficient Homes

The good news is that architects and contractors have been designing and building energy efficient homes for decades. So, it’s best to shop around for a house that was built with energy conservation in mind and avoid paying for excessive fuel consumption and repair bills in the future. A home inspection can provide a lot of useful information for buyers. There are houses out there that have light shining through their foundations at the sills, drafts from cracks around windows and doors, and little or no insulation in their walls, or attics. Buying a new house usually insures that you are getting a building which is well insulated, has energy efficient windows, and a good heating system, but you have to do your homework to make sure. You should also look to see how the house is situated on the lot. Is most of the glass facing to the south for passive solar gain in the winter? Are there large deciduous trees on the south side to help shade the house in the summer? Is there any natural barrier or a garage, to block the cold northwesterly winds in winter months?

Many older homes have been renovated and are actually tighter and more energy efficient than homes built during the 1970's and 1980's when the quality of construction was not up to today’s standards. Besides a visual inspection, buyers can have their agent obtain electric and fuel bills for recent years. These are always helpful in appraising the energy efficiency of a home except when the owners only used the place for weekends and vacations.

The size of your new home makes a big difference in energy consumption. Nationwide, the trend is toward much larger homes, even as family size is decreasing. Just a few of decades ago, the average size of a single-family home was about 1200 square feet as opposed to homes today that are 2500-3000 square feet, or more. Besides using considerably more resources in construction, the on-going maintenance and energy costs of the larger dwelling add up over the lifetime of the home. For singles, couples, empty-nesters, and small families, a condominium or townhouse may be the best choice. These residences offer the best choice in energy savings as there is often a common wall of a unit above or below which helps separate a unit from the outside weather. With limited exposure and good construction, energy expenses can be much lower for condos.

Lets suppose you have already purchased your home and want to save on your fuel and electric bills this winter. Here are some ideas, which may help you save energy:

When most people go shopping for real estate, they usually have a particular type of property in mind. In a few cases, I am directed to look for both single-family residences and condos for a client who haven't decided what to purchase. For the purpose of this article, we are going to examine some of the different forms of condominium development one may encounter and the advantages and disadvantages of condominium ownership.

This past summer, I had a client who wanted to sell his condo on the coast and purchase a single-family home for himself in the Valley. I happened to be in the area and visited his place near Portsmouth and was more than a bit surprised by how beautiful his present home was. It was a rare end unit, which looked over the water in an exclusive development. The only problem was that he just couldn't stand the "Association" rules and restrictions. I've heard this complaint many times before from clients who want to be able to garden and decorate outside as they please. There are some freedoms one must part with for condominium living.

On the positive side, most people enjoy owning condominiums because they have far less responsibility for maintenance and upkeep. There are often amenities such as a swimming pool, tennis, golf, and clubhouse. Although there is a condo fee to cover painting, plowing, landscaping, and so on, owners are free to leave for days, weeks, or months without a great deal of concern. No wonder that condo are the top choice for second and vacation homes, particularly for seniors. Because one is not purchasing land, and, only part of the whole structure, the price tag is more affordable, as well.

Investment or lifestyle?
Uncle Sam will allow you to use a condominium purchased as an investment, two weeks per-year for personal use. The rest of the time it may be rented out by an on-site manager or one of several rental and management companies specializing in vacation property. One may write off numerous related expenses including trips to check on the property (don't forget your skis!). Be sure to check with your accountant concerning your particular tax position. Investment property such as a condo may also be sold and 'exchanged' for another investment property under the 1031 Tax Deferred Exchange section of the IRS Code.

Most condominium owners are more interested in the lifestyle benefits of their purchase. The second home, with little maintenance, may be a meeting place for friends and family or a place to escape on weekends and holidays. Renting the place out is more profitable if done through friends and associates at work. Long-term rentals are also easy to set up through rental agencies and the tenant usually pays the utilities during the lease period.

Many of the people I have worked with over the years have been confused as to what exactly is a condominium as compared to a townhouse. A condominium is defined as a structure of two or more units, the interior spaces of which, are individually owned; the balance of the property (both land and building called 'common property') is owned in common by the owners of the individual units. A townhouse used to be a house in the city as opposed to the country but now usually refers to two or more units attached on the side(s). Townhouses may be owned as single-family residences, condominiums, or as PUD's. A PUD or "Planned Unit Development" is defined as a subdivision of five or more individually owned lots with one or more other parcels owned in common or with reciprocal rights in one or more other parcels. The lots are generally small, being the exact size of the house or townhouse, or slightly larger.

With this in mind, what should one know before purchasing a condominium? First, it is helpful to have an idea of value. There are many ways to determine this and when working with your agent, you should obtain a report of what similar condos have sold for, recently. Buyers need to review the Association bylaws, covenants, restrictions, and budgets (both current and for previous year(s). This information should explain what the condo fees cover and the individual owner's responsibilities. If you have several pets with four legs, you may want to read this carefully! Your lawyer will want to review a statement from the association or management company, which will include whether there are any major improvements, repairs, lawsuits, debts, etc. that may affect the association.

As with any other real estate purchase, it pays to shop around and become familiar with the market. Your agent can be a great asset in helping you sort out the advantages and disadvantages of condos in general, and various developments, in particular. Keep in mind that this is more likely to be a lifestyle decision to make with your future in mind.

There is often a personal feeling of violation for the victim of a home burglary. Valuable possessions may be stolen and the premises might be damaged severely in the process. I know that it was quite a shock for my parents to return home and find that someone had been in their home, from one end to the other. Our Great Dane happened to be on the back porch at the time. My folks' home was in the woods at the end of a cul-de-sac and they decided to purchase an alarm system shortly thereafter. That was some thirty years ago. There haven't been any more incidents and my mother, now a widow, likes the security of the alarm system.

Sargent Jeff Dicey of the Conway Police Department told me that homes in isolated areas (like my parents?) are more likely to be vandalized. "People think that they don't need to lock their houses because there up here in New Hampshire", said Dicey. "The fact is that we have all the crimes that occur in the big cities, just fewer of them". The veteran policeman traces more than 90% of break-ins to drugs and alcohol. Thieves take money, guns, electronics, and most anything of value that can be quickly removed from a home and converted to cash.

While walking down the hall to Dicey's office I asked if this seemed to be a busy time for the police department. "It really comes in cycles", he stated. "But the spring is often a time when there is an increase in burglaries". It is interesting that in 1992-1994 there were about 150 break-ins per year. By 1998, the average was down to just 50 per year. These figures included both residences and businesses.

It seems that no property is immune to crime. Lower priced homes are as likely to be hit as high-priced "executive" homes. The typical perpetrator is usually a male between the ages of 11 and 30. Sargent Dicey suggested having a neighbor or retired person check your house on a regular basis, particularly if it's a vacation property or a second home.

According to the police department, there are several suggestions for home security:

• Know your neighbors and make them aware of when you're out-of-town. Let the police department know that you're going to be on vacation.
• Stop your mail delivery and newspaper if you are on vacation. Have a timer turn on lights, automatically.
• Alarm systems are recommended. They automatically notify the security company if there is a problem and the police are contacted. Wire new homes for alarm systems.
• Dogs can be a deterrent if no one is at home.
• Since most burglaries occur at night, motion activated, and quartz area lights are helpful.
• If one is to use a firearm for personal or home security, definitely get training and keep guns in a secure place. Metal gun vaults are suggested for avoiding misuse and theft.
• Use dead-bolt locks on entry doors and place sticks in sliding glass doors.
  
  

I asked Sargent Dicey what his advice was about opening the door to strangers. He said that once you've opened your door, you've done exactly that, give up your security. It is recommended that the elderly, single persons, children, or anyone vulnerable be very cautious to opening the door to someone they don't know.

Finally, it's always a good idea to keep records on all your personal property, on paper, videotape, computer disk, or whatever, in case there is a loss due to theft or fire. It will make the items easier to identify or claim as insurance losses. Be prudent, be safe.

A few weeks ago, I had a client who viewed several condominiums with me. They were all in the same development and were all similar except for the furniture, appliances, carpet, and condition. None of the units had any material advantage over the others, so I wasn't completely surprised when he asked if he could make offers on two of the condos, at once. My mind raced back to early real estate training in which agents were warned not to expose a client or customer to liability by making two offers which may both be accepted. This is sound advice. On the other hand, I still believe that the client is almost always right, so I agreed to put together two offers to be presented, simultaneously.

The sellers' agents don't like this much because it's a twist on the usual scenario of multiple offers on one property. In that situation, the seller gets to choose the best offer, or, more likely, asks all bidders to come back with their "highest and best offer". As was mentioned recently, in a Sun article, the offered amounts then usually increase, sometimes above the listed price, and terms becomes weighted toward the sellers side. Often inspection and financing contingencies are dropped.

Getting back to the story, I decided to check with the New Hampshire Association of Realtors' Legal Hotline. Chuck Solmes, one of the foremost real estate attorneys in the state told me that simultaneous, multiple offers from a buyer were certainly legal, but that the agent should be careful in drawing up the Sales Agreements so that the buyer did not become obligated to both/all sellers. What eventually happened was a counter offer from each of the sellers and my client chose the most desirable.

It may seem odd that that multiple offers can be made to sellers in a "sellers" market?, but all it takes is a buyer who is willing to accept one property or another. Offers could supposedly be made on dissimilar properties, although the process would seem to lend itself to similar properties, such as condos.

This is certainly not recommended for the person or young couple who want to purchase their first home. I recommend that buyers hire an experienced agent to represent them and seek legal advice, as well. Remember, no one can force a seller to sell his/her property for less than they are willing to accept, just as no one can force a buyer to pay more for a property than they are willing to pay.

John and Louise Abbott phoned me a couple of weeks ago, asking for information on smaller Inns or B&B's to purchase. It seems that they have had their fill of the traffic and other stresses of living in a metropolitan area and are ready to sell their home and invest the equity in a bed and breakfast. The Abbotts plan to use some of their savings to get through the first year start-up/transition into the hospitality business. John wants to do some consulting work for his employer after he leaves his current position. Neither have had any experience in managing this type of business or preparing meals for others on a regular basis. The image of the innkeeper, for many people, comes from TV's most famous innkeeper, Bob Newhart who spends his time merrily chatting with the inn's staff and guests.

According to a local lender, the Abbotts are not alone. There are hundreds, if not thousands, of professional people across the country who want to drop out and operate their own B&B. The banker, who asked not to be identified, said, "It's like the Wizard of Oz. The Wizard is behind the curtain making things happen and the B&B guest has no idea how much work is required on a daily basis." There is a "burn-out" rate that probably exceeds most all other owner-operated businesses because of the vast amount of labor intensive tasks that go along with the operation.

There are basically two types of people who are looking for rooms: people who want a clean, quiet, room with a TV and lots of privacy (such as that found in a motel}, and, people who want to socialize with the owner. The latter ask lots of questions about the inn, the owner's travels, family, and what activities are available in the Valley. If you are not the type of person who likes to tell the same stories over and over, you might think about purchasing a motel rather than a B&B.

A few months, ago, I was visiting with an innkeeper who lives nearby. During the time we were talking, there were interruptions to answer the phone to discuss rates and the various rooms, then checking for available dates. People were coming and going like it was "Grand Central Station". If one spends a little time with an owner, the variety of tasks begins to reveal themselves. There is the late night preparation for the morning's breakfast, early rise to have everything ready for the guests. Next, there's cleaning up the morning's dishes and making up rooms so they will be ready for the next visitors. Along with this is shopping, paying bills, coordinating marketing with the chamber and/or other B&B owners, and so on. There are many tasks to keep the Wizard busy.

On a more positive note, there are many benefits to operating an inn/B&B. One can plan to take time off, particularly during the spring, to take a vacation. There is the pride of owning one's own business and being the boss. Because the operation is home-based, there are a lot of "deductible expenses" that may be applied to one's income taxes. During slow periods, there may even be time for friends, family, and hobbies.

If you want to be an innkeeper, you might consider taking a course in hospitality management. There are several organized specifically for small operations. A business plan is a must, so you'll know where you're going and will be prepared to discuss financing with the bank. Purchasing an existing B&B has the advantage of one being able to step into an operating business. Starting from scratch can mean buying furniture and linens, remodeling, including adding bathrooms, and putting a marketing plan to work. Established businesses will likely be more expensive and will require commercial loans, with higher interest rates, and often, higher down payments. Usually, customers who are experienced, can be approved for financing with lower down payments.

When shopping for an inn, like any other real estate, it's important to look at as many properties as possible. Determine how many guestrooms you want to operate. Hire a real estate agent that is going to represent you rather than one who is trying to sell you a specific property. Talk to a commercial lender before you begin viewing property, so you know what price range is realistic. And finally, start thinking like a Wizard and stop watching reruns of Bob Newhart!