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Real Estate Title Insurance Rates in Connecticut

by Rob Giuffria

Title Insurance Costs In Connecticut (edit/delete)

By: Rob Giuffria, GMS; 1-860-796-4555; rob@tourrealtors.com; http://www.robgiuffria.com/

Title insurance (TI) protects a home buyer against claims to the title of their home. A TI policy is generally a good idea, but a home buyer should understand their options when purchasing a policy. The easiest method is to purchase a policy offered through the buyers' attorney. The largest group offering policies in Connecticut is CATIC. See table below for rates.

Sale Price Fee Percent
 $        100,000  $       440 0.44%
 $        200,000  $       825 0.41%
 $        300,000  $     1,155 0.39%
 $        400,000  $     1,485 0.37%
 $        500,000  $     1,815 0.36%
 $        600,000  $     2,090 0.35%
 $        800,000  $     2,640 0.33%
 $     1,000,000  $     3,190 0.32%

These rates are approximate, but should give you a good idea of the cost of a policy. Also, you should know that your attorney gets paid 60% of the premium cost and remits the remaining 40% to the insurer.

Rob Giuffria, GMS Top 1% Certified Tour Agent ERC Appraisal Certified Vice President - Relocation Prudential Northwest Realty   c 860 796-4555 o 860 677-1122 f  860 760-6850 tf 1-800-837-2750  Rob@TourRealtors.com http://www.robgiuffria.com/ http://www.tourrealtors.com/   This message is intended only for the use of the individual or entity to which it is addressed, and may contain information including trademarks (logos) service marks or copyrighted information that may be privileged, confidential and exempt from disclosure under applicable law. All content included herein is the property of the sender.  If you have received this message in error or if you are the not the intended recipient, contact the sender and delete it from your records and your computer immediately.

West Hartford Home Flip or Flop?

by Rob Giuffria

By: Rob Giuffria, GMS; 1-860-796-4555

I believe the case study method is one of the most effective vehicles for learning and I would like to begin a new series for home seller and buyers. This is the first in a series of real world real estate examples that includes actual stories and the associated outcomes. Names might be changed and figures amended to protect the innocent/guilty client. However, these stories are real! Please email me at Rob@TourRealtors.com for questions regarding this series or visit me on-line at www.RobGiuffria.com. Thanks for visiting!

Client

During an open house, I was approached by gentleman who said that he was an investor and that he regularly bought homes, updated them, and resold them at profit. I later learned that he was a professional (doctor/lawyer) and had a sizable commercial real estate portfolio. 

Opportunity

The house in question was in need of updating and was located in a top West Hartford neighborhood. It lacked curb appeal, but was large (more than 5 bdrms) and was set on a wonderful wooded lot. The seller was facing foreclosure and a job transfer. The home could be purchased below market value, and if updated appropriately, an above average return on investment could be earned. Trends in normal macro-economic risk factors were trending downward and timing was critical to the rehab. 

Recommendation

I recommended that the buyer purchase the home at $250K (figures notional/ratios accurate), invest no more than $125K, and resell the home at $550K. The rehab plan included a new kitchen, floors, updated bathrooms, and painting the house. Finally, I asked that the rehab be complete within 90 days in order to be able to market the home during the prime selling season.  

Outcome

The investor over-spent on items that he liked in a house and assumed that a buyer would value. This exceeded the recommendation for the cap on the capital budget. In addition, the project timeline was not managed effectively and the home was not ready for the prime selling season.  Currently, the home is listed for sale above market value and has not been sold.

Lesson Learned

Market timing can be critical to selling homes. This investor did not consider changing market conditions and also overspent on the house. This was a result of the investor assuming that a buyer for this house would value all the same amenities as he/she did. This was not the case. The investor lives in a $2M+ house and his desires/likes in a home are totally different from a buyer in the market for a $600 - 900K house.

Effects of Overpricing Home for Sale, Avon CT

by Rob Giuffria

Seller Case Study 2007 #2: 1 Sconsett Point, Avon CT 06001

By: Rob Giuffria, GMS; 1-860-796-4555

I believe the case study method is one of the most effective vehicles for learning and I would like to begin a new series for home seller and buyers. This is the first in a series of real world real estate examples that includes actual stories and the associated outcomes. Names might be changed and figures amended to protect the innocent/guilty client. However, these stories are real! Please email me at Rob@TourRealtors.com for questions regarding this series or visit me on-line at http://www.robgiuffria.com/. Thanks for visiting!

Client

A mid-level executive at a local Fortune 100 company. This client said they were familar with quantitative analysis and would like to apply econometric principles and the rigor of six sigma in the valuation model to evaluate their home.

Opportunity

Customer wanted to get a better understanding of the value of his home. He was considering a job change that would require an interstate move.

Recommendation

List price recommendation was $639,000. This would result in a sale price 98% of list (~$626,000) in <= 36 days.

Price Recommendation and Results

Outcome

Seller did not accept recommendation and chose to list with a competeting broker. Initial list price was set at $667,000 on 6/14/07. Price was reduced to $649,900 on 8/8/07 and $639,900 on 10/8/07. Home was sold on 11/8/07 for $620,000. The seller held the asset for approximately 90 days longer than required for sale at a cost of ~$7,800. (Assest holding costs = Cost of Capital X Asset Value)

Lessons Learned

Effectively pricing a residential home based on the same sales approach is possible if assumptions are made regarding macro economic variables and those assumptions are based in fact, but do not include inherent biases from the sellers.

How to Calculate CT Conveyance Tax-|-CTROB

by Rob Giuffria

How To Calculate Connecticut Conveyance Tax (edit/delete)

The state of Connecticut charges a conveyance tax (1/2% on first $800K and 1% on additional value) on the sale of a home. Also, the local town charges 1/4% and can charge an additional 1/4% if they are in an economic development zone. The tax is paid by the seller and is collected by the town clerk when the deed is filed. Here's the formula for calculating the tax due:

Sale Price: 0-$800,000, then (SP*.005) + 1% of the value >$800,000.

Example: Sale price of $475,000 (.005+.0025) = $3,562.50

Contact Rob via email at Rob@CTRob.com or by phone at 860.796.4555 for questions regarding real estate tax issues.

NAR Misrepresents Data

by Rob Giuffria

NAR Continues to Misrepresent Data: Days on Market Calculation is Understated

By: Rob Giuffria, GMS; Farmington, CT | 1-860-796-4555; rob@tourrealtors.com; http://www.robgiuffria.com/; Prudential Premier Homes

Our number #1 trade group continues to publish inherently flawed data. The latest example, the Days on Market (DOM) calculation, does not include time on market for listings that were previously listed, but not sold. How can a trade group that supposedly has our best interest in mind keep publishing patently false data? These inaccuracies perpetuate NAR's image of a real estate cheerleader, instead of a source for objective data.

Please let me know your thoughts on what you think of the NAR's job during the last year representing us in the media.

Happy selling and let's have a great 2008!

Rob

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Rob Giuffria, GMS |Top 1% Certified Tour Agent |ERC Appraisal Certified| Vice President - Relocation| Prudential Northwest Realty   c 860 796-4555 o 860 677-1122 f  860 760-6850 tf 1-800-837-2750  Rob@TourRealtors.com http://www.robgiuffria.com/ http://www.tourrealtors.com/   This message is intended only for the use of the individual or entity to which it is addressed, and may contain information including trademarks (logos) service marks or copyrighted information that may be privileged, confidential and exempt from disclosure under applicable law. All content included herein is the property of the sender.  If you have received this message in error or if you are the not the intended recipient, contact the sender and delete it from your records and your computer immediately.

Displaying blog entries 1-5 of 5