Dana Voelzke, Danbury CT Residential Lending

Yesterday on Trulia, a popular real estate website, a consumer from the area asked what's so great about Brookfield CT? Read the discussion thread here.

Here's some reasons why you might consider relocating to Brookfield, CT:

1) Brookfield is a small town that has lower real estate prices than the area to its south yet is commutable to areas with a wide availability of jobs such as lower Fairfield County and Westchester, and has easier access than many of the other surrounding towns to I-84 and Route 7.

2) More proximity to the Federal Rd./Newtown Rd. shopping hub on the Brookfield/Danbury line with numerous restaurant and entertainment options, and everything from furniture stores to Costco to Stew Leonards.

3) Comparatively low taxes

4) A small town feel

5) A well regarded school system (public, private, religious, etc.)

6) It's picturesque with lots of stone walls and has many opportunities for recreation with Candlewood Lake and Lake Lillinonah within its borders. Many parks, hiking trails, recreation, a senior center under contsruction, and many childrens activities, too.

Looking for real estate statistics on Brookfield, CT? You've come to the right place. Here is the market snapshot for the month of October 2010. Our average home price is around $440,000, but starter homes begin around $250,000 and we also have fabulous luxury homes and estates too. In recent months our average home price has shown statistical appreciation simply because more higher priced homes have been selling this year as compared to last year.

Brookfield sold 13 homes last month, about in line with our average for the past year, and the number of pending sales expected to close in the next 45 days is about the same. The inventory of homes on the market is 11.4 months overall, down from its peak, but still a buyer's market, although the inventory in homes priced under $350,000 AND homes in the middle at $450,000 to $550,000 is lower at "only" 8 months (a balanced market is 6 months). The average market time of the homes that sold in the past year was 105 days, but only about one third of the homes that are put on the market sell at all.

In the last year the first time home buyers dominated the market with the first time home buyer tax credit, but this month we see that the number of pending sales in the $700,000+ highest end of the market is greater than the number of pending sales in the starter home segment.

What you need to know about investing in a Multi-Family in Danbury CT

I've had a number of questions recently about my listing at 20 Griffing Ave. I figured it might be useful for someone thinking about dipping their toe into real estate investing. Here's some things you need to know about the world of multi-family homes in Danbury CT:

About 90% of our multi-family inventory was built between 1880 and 1930. Our inventory is older and unless you are lucky enough to find one who has has a contractor for an owner who did a major remodel at some point, there may be structural work involved. Even if the structural condition of the home is good, it will probably require some work. There are exceptions, but I'm generalizing.

67% of all multi-family homes sold between January and June 2010 were Bank Foreclosures.

The average prices have come down because these sales are distressed, but also because rents have really come down. Even though they have come down, Danbury still has a reasonably stable employment picture - better than most areas of the country- and rents are really high. I have had people from NY City come to Danbury and complain about how expensive it is to rent here. A small two bedroom usually rents for at least $1,000, but can easily reach $1,300.

• About 1 in 4 of the sales in the last 6 months are cash. And when the seller is a bank, they prefer cash. I have had clients who bid $30k more loose because the competition had cash.
• About 1 in 6 of the properties approximately have sold for more than the asking price, so it is important to know your prices.
• There is a lot of inconsistency in the status of some of these homes (is it a legal two family or a legal four family?). This takes time to sort out and requires a good attorney.
• An insect inspection should be a part of any multi-family purchase because I am hearing more and more stories about bedbugs and other fun stuff (yuck, I know!). Bedbugs are coming back across the Tri-State area if you watch the NY news!

Many times buyers think they can contact the homeowner directly to purchase a home that is being foreclosed on. Most multi-family foreclosures in Danbury are owner occupied, not investors. Unless the seller has agreed to cooperate with a short sale, they have little to no control over anything except how long they stay in the house (the priority in many cases is either to modify their loan to lower the payment and stay in the home, or simply to stay as long as possible). Most multi-families that are bank owned are listed with Realtors. I have seen some cases where the buyer has waited 2 years for the property.

List of multi-family homes for sale in Danbury CT

If you think you might like to purchase a multi-family in the Danbury/Bethel CT area, I'd be glad to answer your questions.

First Time Home Buyer Trends in Danbury CT - Plan for the Unexpected

First time home buyers in Danbury CT have a lot more going for them now that at any time during the last ten years: low interest rates, a buyers market with 12+ months of inventory, lots of homes to chose from. But before you write this blog post off as just another cheerleader pitch for "it's a great time to buy," it's important to think about planning for the unexpected when comitting to a long term investment like a home purchase.

Here are few recent examples of this that really drive home this point:

1. A tree fell on this recent home buyer's house (need I say more?)

2. A recent home buyer was the victim of a horrible hit and run car accident in broad daylight disabling him from working for at least three months.

3. Despite dilligent efforts to do their homework and inspect the property, a recent home buyer couple who purchased a foreclosure home uncovered some unexpected electrical problems that will cost more than budgeted.

The point here is simple: life happens! In addition to making sure you can comfortably afford the monthly payment, finding a home that fits your needs, and figuring out the best commuting routes from Danbury to work, take the time to make sure you are ready for a long term investment and plan for the unexpected. Make sure you have enough reserves or an emergency fund for 3-6 months of living expenses. Make sure you have budgeted for home maintenance and your insurance coverage is sufficient. Here is a recent question I answered on Trulia about this same topic for a first time home buyer who is considering purchasing a home for the first time with a low down payment. Be honest with yourself and don't stretch too much...because life happens, so be prepared for the unexpected!!