Degradation of The American Dream

The real estate market is heating up, in many areas, it’s becoming a sellers’ market place. I am watching many homes come on the market and have several offers being made within thirty days, if they are ready to move into. Then there are those homes which have languished on the market for months as sellers question their real estate agent; why? They watch homes, in other communities as well as their neighborhood, come to market and quickly sell, as their home sits idle. Many sellers have learned, all too quickly, the importance of curb appeal, price and location. What I find, regularly, many home owners bought more than they should have afforded. The idea of living, “the American dream”, soon became an unaffordable nightmare. Many home owners bought homes, before the real estate correction, watched their property values rise and fall dramatically and decided to forgo those small maintenance issues, because of their physiological loss of value of their home. Many homeowners figured on the cost of their monthly principle and interest payment, taxes and insurance but failed to set aside enough money for maintenance and the ever increasing utility bills. Faded paint, deteriorated roof, an HVAC system over fifteen years old, appliances original to the home being built and the list goes on and on of why their home sits idle. What I’m witnessing now, many of the owners are having to invest into the repairs, (out of pocket or on credit cards), in order to get their homes sold. Then there are those home owners who have meticulously maintained their home for the past twenty years and wonder why their home isn’t receiving any offers and those that do come are well below the listing price and the reason is, everything about the home is original, (even though it has been maintained meticulously). Here are a few factors that need to be taken into consideration when buying or selling a home; a shingle roof when properly installed and the attic is properly ventilated should have a useful life of 18-23 years. HVAC equipment has a useful life of up to 15 years and many older units are not energy efficient. Water heaters may last 8-10 years as well as appliances. There is always painting, general repairs, landscaping issues, flooring upgrades, light fixtures, window and plumbing fixture replacement. I often suggest setting aside 2% of the home value, annually, for future repairs and general maintenance in a savings account, for all those repairs that seem to pop up at them most inconvenient times. You can’t stop your home from aging, but you can prepare for the future and not let your home become a degradation of the American dream.