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Otogawa-Anschel
Ask our broker
QandA WITH PETER G. MILLER

How to Figure Future Traffic

Flow into Price of a Home
Q: I’m buying an apartment
condo. In one of the areas I’m
looking the government is build-
ing a new museum, a move that’s
likely to increase area traffic. How
would this affect the property
value of the apartment condo?

A: More traffic and a unique, desirable attraction

should increase the pool of potential buyers and thus
enhance the value of the property.Alternatively, more
traffic might also lead to parking problems and related
issues.The larger question should be:Where would you
prefer to live? Your chief concerns should be price,
unit size, location, monthly fees and the like.

Q: We’re selling a single-family home on a

large lot. The market here is hot and the day the
sign went up our broker received many
inquiries. One agent asked if we would sign a
full-price offer today, with one week for inspec- Inside an award-winning remodel: great communication between client and Minneapolis design/build firm Otogawa-Anschel and a resourceful mix of the luxuri-
tions and such. Our agent said that all offers ous (a soaking tub for two) and the thrifty (a scrap granite sink surround) made for a spectacular remake of a master bath.
would be considered in a few days when we
return from a trip. Was the agent right or should
we have immediately accepted the offer? Bathroom Basics
A: By instantly accepting a written offer you would
have gotten the full list price, a good result by any stan-
dard. However, you’re in a hot market.The sign just
Eight Tips from an Award-Winning Renovator
went up and you immediately have calls.The agent
wants to get you the best possible price and terms, so BY MARY CONNORS tion costing less than $30,000. says Michael Anschel, owner and principal
Content That Works You don’t have to spend that much to designer.“It’s a relationship, and if it isn’t
it makes sense to let buyers compete for the property.
Within a few days you’ll get the original offer if the remodel a bathroom, of course.According to there the entire process is miserable.”

buyer was serious and you may also get other offers –
perhaps including offers for more than the asking
price.
Q: I want to make an offer on a property
already under contract. The first contract
requires certain financing, but if that require-
ment is not met the buyer can withdraw from
the sale without penalty. I have made a back-up
offer on the property. Can the owner accept my
back-up offer instead, with no financing clause
and a better price?
A: No doubt the seller would prefer your offer, but
before accepting a back-up proposal the owner must
honor the current agreement. It’s a “contingent” con-
tract; that is, certain requirements must be satisfied
before the agreement is finalized. It may happen that
See ASK OUR BROKER, Page 2
W
hat does it take to create an award- NARI, the average homeowner will spend in His success with the award-winning bath-
winning bath? For Otogawa- the neighborhood of $10,000 for a typical room remodel started with clients who were
Anschel, a resourceful design-build redo. By careful consideration of what’s open to suggestion.“There are two types of
firm, the formula was pretty simple: $28,000, important to you, working with design assis- clients,” he notes.“There are those who have
four weeks and an innovative, open plan. tance tuned in to your budget and goals, it’s researched and thought through what they
One of 25 companies honored with a possible to craft something really special. want and those who watch TV shows and lis-
2005 national COTY award from the National Chemistry and communication between ten to their friends.”
Association of the Remodeling Industry homeowner and the designer and builder are Is there a bathroom-remodeling project in
(NARI), the Minneapolis company took top essential.To succeed with your renovation,
honors this year for a residential bath renova- “find a remodeler you like and who listens,” See BATH MAKEOVER, Page 2
Rules of the Road for First-Time Renters
BY CHARLES SCUTT thing. ally kept in check by the pres- Starting Out or Starting Over,
Content That Works It’s a great time to rent, says ence of a lot of rental housing on (Sphinx Publishing, 2004).You
Alexander E. Hamilton, real estate the market.” can usually rent an apartment,
Owing your own home may attorney with Benjamin,Weill & First-time renters should make condo or single-family home less
be the great American dream. But Mazer in San Francisco.“More it their business to understand money than is required for own-
renting a residence also offers and more people have invested the differences between renting ership, but a renter obtains no
practical benefits, provided you in rental property rather than the and owning and the tradeoffs equity or growth potential and
do your homework, choose a stock market,” says Hamilton. involved, says Jim Kramon, part- no tax relief.A tenant also must
rental unit carefully and read the “Tenants have more choices than ner in the Baltimore law firm
fine print before signing any- ever before, and rents are gener- Kramon & Graham and author of See FIRST-TIME RENTER, P. 2

© 2005 Content That Works – All Rights Reserved • contact us at 866-6CONTENT or CONTENTTHATWORKS.com for licensing information.
 FIRST-TIME
RENTER
CONTINUED FROM PAGE 1
follow the rules of the lease,
which may mean a more restric-
tive lifestyle, and must be toler-
ant of neighboring renters in the
building.
THREE RULES FOR RENTERS
Three criteria make for a
good rental deal, according to
Hamilton.
• Is the space suitable for
your needs? Says Hamilton,“Ask
yourself: Is it big enough? Does it
have amenities that improve
your standard of living such as
cable TV, high-speed Internet
service, storage facilities, or new
appliances? Has it been well
maintained?”
• Consider the location. Is it
convenient to public transit? Is
the neighborhood safe? Will traf-
fic noise be a problem? Is it close
to grocery stores and restau-
rants? Are there any nuisances,
such as low flying aircraft? Is the
weather good? Who are the
neighbors, and what hours do
they keep?
• Scrutinize the terms of the
lease. Is the rent in line with
other units in the area? Who is
obligated to fix things when
they break? Is there a manage-
ment company or are you
required to deal directly with the
landlord? Can you decorate with-
out the landlord’s consent?
UNDERSTANDING THE LEASE
It’s vital for first-time renters
to understand the contractual
nature of a lease, notes Hamilton.
Unlike a rental agreement, which
is normally on a month-to-month
Renter’s Checklist
• Determine your priorities. Consider location, affordability, apartment size and style.
• Research prospects. Use newspaper classifieds, drive-by searches, word-of-mouth recommendations.
• Interview owners/landlords by phone.
• Schedule a tour. Document the unit’s condition and indicate repairs needed to the landlord. Assess the appear-
ance and condition of the entire building.
• Talk to neighbors. Knock on a few doors and ask how satisfied tenants are.
• Examine the lease. Consider a review by a lawyer.
• Consider renter’s insurance.
• Photograph or videotape the apartment before moving in, as proof of the unit’s condition.
BATH
MAKEOVER
CONTINUED FROM PAGE 1
your future? Perhaps it’s time to
turn off the T.V. makeover shows
and get down to the practical
business of planning a great bath-
room.Anschel offers the follow-
ing tips:
1. DON’T LET YOUR TIMELINE DRIVE
THE PROJECT
“Don’t call a firm in the
spring and say, I want it done this
summer,” says Anschel.“Truth is,
the companies that are good are
typically booked out a little
ways.” Finding the right people
to do your job may be the single
most important factor in under-
taking a successful remodel.“If
you have to wait six months, so
what? Be leery of the person
who can start next week.”
2. ESTIMATES ARE OVERRATED
Unless you have drawn up a
set of plans specifying all aspects
of the job right down to the door
pulls on the vanity, asking for
three estimates and choosing,
say, the one in the middle, is not
a smart strategy,Anschel says.
“Instead, hold three interviews
with remodelers and keep your
ears open. Find a remodeler you
like, one who listens to you and
who you like listening to.”
3. SWEAT EQUITY CAN MAKE A
BUDGET GO FURTHER
As long as they respect the
project timeline,Anschel is
happy to accommodate clients
© 2005 Content That Works – All Rights Reserved • contact us at 866-6CONTENT or CONTENTTHATWORKS.com for licensing information.
basis, a lease obligates the tenant
to pay rent for an extended peri-
od, normally 6 months to a year.
“A good lease is one that pro-
vides the tenant with the premis-
es at a reasonable rent for a rea-
sonable amount of time, permits
the tenant to do everything rea-
sonable he or she wants to do in
the apartment, such as have a
pet, and provides a renewal
option at a small increase in
rent,” says Kramon.
Lease terms are not set in
stone. It’s possible to negotiate
with a landlord to meet your
needs, Hamilton says. Rather
than negotiating to revise a cer-
tain lease term, it may be easier
to add a term, he says, such as
one that allows you to get out of
a lease early if you can find a
suitable replacement tenant.
Consider the time frame of
the lease; if you don’t have a rea-
sonable expectation that the res-
idence will suit your needs for
the full term of the lease, don’t
sign it.“If you anticipate chang-
ing jobs, getting married, or hav-
ing children, you should plan
accordingly,” Hamilton says.
Be prepared to provide credit
references or find a family mem-
ber willing to cosign the lease if
you don’t have sufficient credit
history to satisfy the landlord,
says Hamilton.
Read and understand all terms
of the lease. Don’t skip the fine
print.“Be certain you understand
everything in it,” Kramon says.“It
is very useful to have a checklist
of your requirements before you
review your lease.This will
enable you to be certain that
everything you need in your
lease will be there.”
If you’re unsure of any aspect
of the lease, ask a knowledgeable
relative, real estate agent or attor-
who want to complete parts of a
job themselves.“Their involve-
ment gives them real ownership
of a project.”
In his recent award-winning
bath remodel, the homeowners
handled the painting, using col-
ors Anschel chose and following
his painting plan. Other clients
have stained floors and wood-
work; qualified homeowners or
their family members have han-
dled plumbing and electrical
work.“Our goal is not to monop-
olize the project,” he says.
4. CONSIDER HIRING A DESIGN-
BUILD FIRM
Anschel is biased, obviously.
Otogawa-Anschel is a “design-
build” firm.The company plans
and executes a project, and is
responsible for the whole nine
yards, from conception, to blue
print to project completion.
Architects and interior designers
can deliver a design plan, but
they operate at a remove from
real-world issues of construction
and cost, he says.
“When we encounter a prob-
lem with a design, we can
address it instantly.”When a con-
struction contractor working
from a designer’s plan hits the
same snag, he must stop work
and put in a call for design help,
which may or may not be avail-
able quickly.
5. DON’T BE AFRAID OF COLOR
Look for full, rich, deep colors
that contain hints of other col-
ors.“Avoid flat colors. Go for
those that are a little warmer, a
little richer.These are more pleas-
ing, and will resist looking dated.
ney to explain it to you.
RENT INCREASES
Generally, a landlord cannot
increase your rent during your
lease term unless your lease
allows for it. Once the lease
expires, the landlord can usually
increase your rent as much as he
or she wants, as long as there are
no limits imposed under rent
control laws or your original
lease.
To increase your rent, a land-
lord must give you proper
notice. State law may require
your landlord to provide written
notice and serve it personally to
you.
SECURITY DEPOSIT
Many landlords require a
security deposit up front, a lump
sum (often a month or two of
rent) held in an escrow account
and returned to the tenant when
he or she moves out.The land-
lord is allowed to deduct
amounts from the security
deposit for legitimate reasons,
such as damage to the property,
unpaid rent or cleaning.
In some states, a landlord who
requires a security deposit is
legally obligated to provide a
new tenant with a statement
detailing the condition of the
premises before that tenant
moves into the property.Walk
through the apartment with
your landlord or the property
agent before signing the lease, to
ensure that you agree on the
condition of the unit. Keep a
copy of the description in a safe
place, along with your lease
paperwork, so that you can refer
to it when you move.
© Content That Works
They’ll last longer.” In his award-
winning bath,Anschel used 19
different colors of paint, creating
visual effects to expand the
space and add drama. Deep red
tile next to the soaking tub
added richness and drama.
6. IF SPACE ALLOWS, PUT THE
STOOL IN ITS OWN ROOM
This gives the bathroom more
utility.“A separate water closet is
a fact of life in Europe and Asia,”
says Anschel.“It’s more and more
common here, too. I think it’s
here to stay.” Separate showers
and tubs are more common, too,
he says.“If you have the space,”
says Anschel,“I recommend
doing it.” In his award-winner,
two rectangular cutouts in the
wall of the shower enclosure let
light spill through the space.
7. THINK LOW-IMPACT DESIGN
Make ecologically sound
choices where you can,Anschel
urges.“Our clients like the idea
of green design and we do, too.”
Typically, going “green” means
using a better quality product, so
you don’t need to redo the room
for a long time, conserving all
sorts of construction material
and energy. His firm often opts
for bamboo rather than tile or
hardwood floors, non-toxic, low-
or no-VOC (volatile organic com-
pounds) paints, now available in
a full range of colors, and rem-
nant granite.
Green products are easier on
the environment and using them
doesn’t mean abandoning a
quest for high style.“All the cut-
ting edge stuff we see coming
out these days has some green to
Ask our broker
CONTINUED FROM PAGE 1
the buyer will withdraw the contingency because the
financing terms have been met or just because the
buyer wants the property; or it may be that the financ-
ing terms cannot be met and therefore the buyer will
back out.
In this situation it would be good to know the precise
terms of the financing contingency. For example, it may
be that the buyer must get be able to get a $300,000
mortgage at 5.75 percent to close the purchase, and it
may also be that the seller has a 24-hour “kick-out”
clause.This means if the buyer cannot get financing
upon the seller’s demand within 24 hours, the deal is
finished, the buyer gets back the deposit and the seller
can look at other offers. For details, speak with your
broker.
Q: I want to buy a home for less than the asking
price. Can I make a reduced offer that requires
the broker to lower his commission and thus
leaves more for the seller?
A:When a home is put up for sale through a broker,
the broker and owner create a “listing” agreement that
establishes the marketing price for the property, various
sale terms and the broker’s compensation.This is an
agreement between the owner and the broker, no buyer
is involved, and it’s an agreement established before any
purchaser makes an offer. Upon seeing a written pur-
chase offer which includes a commission reduction, the
broker can refuse to accept a pay cut.After the transac-
tion, whether the bidder wins or not, the broker might
also ask a lawyer if the buyer has engaged in “tortuous
interference,” essentially the effort by an outside party
to disrupt an existing contractual relationship. Please
see an attorney for details.
As a buyer your goal is to pay as little as possible for
the property and get the best terms. Submit an offer
reflecting what you want to pay and what terms your
require.Whatever you propose, the seller might then
accept your offer, reject it or make a counter-offer.As to
what the seller pays for brokerage services, that’s a pri-
vate matter between the owner and the broker.
Alternatively, imagine if you had a buyer brokerage
agreement.Your buyer brokerage agreement, like a list-
ing arrangement, would also be a private matter
between you and your broker. Its terms and fees are not
something a seller could change.
© Content That Works
Do you have a question or a quandary about buying, sell-
ing or renting? Peter G. Miller, author of The Common-Sense
Mortgage, specializes in providing real solutions to real estate
dilemmas. E-mail your questions to
peter@contentthatworks.com.
it,”Anschel says.
8. BLEND THE PRACTICAL WITH THE
FANCIFUL
Anschel’s project stars a 21”
soaking tub – with room for two
– and a light dimmer.The tub is
fiberglass, which is less costly
than cast iron. Sunk in a well-
built deck with concrete, fiber-
glass delivers the same perform-
ance,Anschel believes. Instead of
a chunky vanity or a pedestal
sink with no counter space, the
firm installed a $600 piece of
remnant granite, carved and pol-
ished into a pleasing organic
shape, and fitted with a stainless
under-mount sink.
As for the painting,Anschel
selected the 19 colors, carefully
plotted what shade went where,
and let the homeowners handle
the application.“I like when
clients handle an aspect of a
project,”Anschel says.“It gives
them ownership.And then, when
at some point a project isn’t pro-
gressing as fast as they seem to
on TV’s Extreme Makeover show,
they understand why.”
©Content That Works