Wall Street Journal Advice for Sellers

Jul. 17, 2008

With all the negative news in the headlines, about the struggling real estate market, it was somewhat refreshing to me, to see an absolutely fabulous, accurate, and worthwhile article that appeared in the Wall Street Journal, this past Monday, titled, "How to Sell a House when you Have to Sell in Now".  http://online.wsj.com/article_email/SB121553612650836199-lMyQjAxMDI4MTE1NjUxMzY2Wj.html

Contrary to what you might suspect, reading the headlines, there are houses selling in our market, every day of the week.  There are sellers who have to move, generally for traditional reasons, such as job transfers, outgrowing homes, downsizing, family circumstances, etc. There are buyers out looking at homes, every day, as well.  The article offered 7 steps to consider, in order to effect a sale in today's market.

Those 7 steps include the following:

1.  Don't wait around.  Basically the advice is that because the time on the market has increased, if you have to sell, don't sit around trying to sit out the market.  If you want to sell, the best, and only way to make that happen, is to put it up for sale.

2.  Fix it up and clean it up.  The advice in the article is not to spend a lot of money on big ticket renovations, but to make sure that everything is in good repair, including paint, etc.  Please note, that this won't necessarily give you a pricing advantage, it will just ensure that your property stands out from the competition.

3.  Price it Cheaply.  Note the language that David Crook, the author, used.  He advised to be realistic, in setting the price from day 1. Don't let the house hang on the market for month after month.  Remember that your house is worth what it is worth today, not 3 years ago.  Buyers are looking for, and buying, those homes that they perceive to be bargains.  Your price has to stand out.

4.  Although I am obviously biased, this one is my favorite!  Hire a Top Real Estate Agent.  The author's advice is to, "Get the best, most aggressive selling (listing) agent you can find."  This is self explanatory, but basically the point is, that with the market being as challenging as it is, sellers need to take advantage of every possible activity to maximize the properties exposure to the market.

5.  Promote, Promote, Promote.  This is a follow up to the above suggestion.  As a seller, the article suggests that you should have a hand in making sure that your property is exposed everywhere possible.  Make sure your house is on all of the leading web portals, including Trulia, Zillow, Cyberhomes, Realtor.com, to name a few. Get really creative.  Perhaps you can promote the property in your own corporate newsletter, and intranet listings.  If you are part of an organization, put it in your organization newsletter, or bulletin.

6.  Play the banker.  If you are fortunate enough to have lots of equity, or perhaps no mortgage, consider offering the buyer some kind of creative financing.  Might be the difference between a buyer purchasing your house, rather than some else's.

7.  Take the Offer.  I can't emphasize this enough.  I can't tell you the number of times that sellers won't take an offer, and then regret it, months later.  Negotiate the best you can, but be practical and realistic. If the offer is reasonable, and I understand that is a magical word, be prepared to accept it. Remember, that as much as you love your house, it is only worth what someone is willing to pay for it.  That will, in all  probability, in today's market, be less than what you think.

As I said at the beginning of this post, I think the Wall Street Journal did sellers everywhere, at great service with this article.  Obviously the Journal has a great deal of credibility.  I have been trying to get this basic advice to sellers, for some time.  It makes a lot more sense coming from the Wall Street Journal, than from me.  If you are a seller in this market, do yourself a favor, and think very seriously about this advice.

 

 

View more entries tagged with: Yardley, Upper Makefield, Newtown, Solebury, Buckingham, New Hope, Real Estate Sales Advice

Jim Gillespie presenting Martin Millner with the top team at Coldwell Banker Hearthside

May. 14, 2008

I was very proud, recently, to have received an award from Coldwell Banker Hearthside, as the top producing team in the entire company, for the second consecutive year.  The award was presented to me, in front of the whole company, by the CEO of Coldwell Banker, Jim Gillespie.  Jim delivered a wonderful address, which I will speak of, in a minute. 

 

I don’t like to spend too much time talking about my real estate accomplishments, but this award was particularly meaningful.  Obviously 2007 was a very challenging year for most realtors.  My team and I,  had a very strong year in 2007, despite the markets challenges.  We constantly strive to deliver service that is better than expected, and to search for tools that enhance our ability to expose our listings to the market.

 

Jim Gillespie, as the CEO of Coldwell Banker, is a highly respected and knowledgeable expert on real estate.  You can see Jim often, on many of the financial news stations, commenting on what is happening in the real estate market.  These comments were taken directly from his presentation to our company, at our awards celebration, recently.

 

As I have posted about several times, the overall real estate market is not as bad as the press would have us all believe.  According to Jim, and all of these statistics are completely documented, of the 75 million homeowners in the US, 35% have no mortgage.  50% have fixed rate mortgages, 6% have a government loan and only 9% have subprime loans!  We also don’t learn from the press reports, that according to NAR (The National Association of Realtors) the average median price increase in real estate from 1972 through 2007 was 6.2% per year. 

 

When reporting about the so called foreclosure crisis, the press does not dig into the real numbers, rather they play up the percentages without noting the true effect on our industry.  According to RealtyTrac, which is a leading source for tracking foreclosures in the US, last year there were 1.2 million foreclosure filings, but there were actually 405,000 homes lost to foreclosure.  This year  they are suggesting that the filing number may jump to 1.5 million filings, which the press uses as the number of homes actually lost to foreclosure.  History tells us that the number will be well under half of the foreclosure filings.  In 2006 there were around 268,000 homes lost to foreclosure.  In 2007 that number jumped 51% to 405,000 according to RealtyTrac.   While playing up the 51% increase in foreclosures, the press does not look at how those actual numbers affect the real estate industry.  In reality, there were less than 140,000 more homes lost to foreclosure during that one year period, which represents less than a week’s worth of sales in 2007 when we saw 5.6 million re-sales and approximately 800,000 new home sales.  This is not meant to negate the tragic impact that home owners face, when losing their home to foreclosure.  It is only meant to point out that we are not getting the true picture of the real estate industry, from the press.  As I have repeatedly pointed out, real estate is local, local, local!

 

In Jim’s presentation to us, he went on to point out a number of extremely encouraging demographic trends that bode well for real estate, in general.  There are 78-79 million baby boomers, who are still in their prime and will be purchasing real estate for decades to come.  They are purchasing second homes, retirement homes and have discovered real estate as an investment.

 

The kids of baby boomers, 73 million strong, will fuel real estate for the next 5 decades.
Legal immigrants is the third demographic that will continue to drive real estate.  There are between a million and a million and a half legal immigrants, depending on the source, who arrive in this country and add value to our nation.  These people want and deserve the American Dream of homeownership.
Finally, there has been a dramatic increase in home ownership among minorities.  According to Nar, the homeownership rate of minorities has grown from 40% to 50% in the past the years, and this percentage will continue to increase.

 

People buy real estate, in general, for lifestyle.  According to NAR there have been 4 million jobs created,  4 million marriages and 8 million babies born in the last two years.  These are lifestyle changes that many times, trigger a home purchase.

 

The long term outlook for real estate is extremely strong as our population grows from 300 million today, to over 400 million by the 2040’s.  According to two major studies, there will be a long term imbalance of supply and demand.  The Brookings Institute issued a report in December, 2004 stating that by the year 2030 we would need 58.9 million additional residential units to meet the countries demand.  The Arthur C. Nielsen Institute at Virginia Tech recently did a similar study looking out to 2040 and predicted we would need 70 million additional residential units built by that year.   These studies bode very well for the long term appreciation for real estate.

 

Finally, according to NAR there will be 15 million households formed between now and the year 2015 outpacing the past 10 years of household formations.

 

I apologize for such a long post, this time around.  I thought it was very important to let readers understand that there is a lot about the state of the current real estate industry and market that we don’t get by listening to the press.  Jim Gillespie did a great job of creating some balance in analyzing the numbers and what they mean to all of us.

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Bucks County Basketball Charity Event - Philadelphia Eagles

Apr. 30, 2008

I had to write a blog entry about a recent basketball experience that I had.  As anyone who knows me can attest, I am a bit of a sports nut.  I love to watch sports, and have coached and played many sports over the years.  I play basketball several times a week, locally.  If anyone wants to know where there is basketball played in the Yardley-Newtown area, just ask me. 

My daughter, Rachel, recently won a bid at a local charity auction to gift to me that related to my love for basketball.  She was the top bidder for an opportunity to play in a basketball game with the Philadelphia Eagles, travelling basketball team.  The Eagles have a group of players, that plays a 7 or 8 game schedule in the off-season.  They do it as a fund raising effort, for local charities. 

As a result, on Friday evening, my wife Jane, Rachel and myself, travelled to a high school in Downingtown, so that I could play with the Eagles.  What a great experience for me!  It definitely brought back memories of my high school and college days, playing a variety of competitive sports.  I was given a uniform, warm up shirt, and shorts, and suited up with the Eagles.  We played 10 minute quarters, and for those interested, I did hit a couple of jump shots.  The gym was packed, and it was incredible fun!  The Eagle players who participated, were AJ Feeley, Hank Baskett, Juqua Thomas, Omar Gaither and Quintin Mikell.  All could play!  They were extremely supportive of my participation, and constantly encouraged me to shoot.  I had a great workout, and really enjoyed myself.  It was an event that I will not soon forget.

I realize this has nothing to do with real estate, other than to make anyone who plays basketball, aware of the fact that I can help find games, for those interested. 

View more entries tagged with: Bucks County Charity Event, Yardley Real Estate, Bucks County Real Estate, Martin Millner, Coldwell Banker, Yardleynewton Real Estate

Bucks County Real Estate Trends

Apr. 16, 2008

First quarter statistics are in, so we are able to begin to develop a better indication of where things are with regards to real estate in the communities I serve, in Bucks County.  I have written many posts in the past, explaining that the market in Bucks County, is nowhere near as depressed as it is in some markets in the country.  I will address that issue, in another post to follow shortly. 

Here in Bucks County, looking at first quarter statistics, there is no question that we are continuing to experience a buyers market.  That means that there are lots of things on the market, not as many buyers.  One point of emphasis though, is that contrary to what the press would have everyone believe, foreclosures in our area, are still not influencing the market significantly.  I still have buyers who are under the impression that every house currently on the market, is being sold by a desperate seller, who is facing imminent foreclosure.  That is simply not the case.  Virtually every single seller in the market, that I am aware of, is selling for life style, or job transfer reasons.  I have sellers moving up, downsizing, and selling becuase of job transfers.  All of those reasons, are completely normal.

Here is what the statistics show.  The volume of sold/closed units through the first quarter was noticeably lower than last year, in virtually all of our markets.  Lower Makefield Township was actually down almost 30%, and Upper Makefield was down almost 50%.  Newtown Township was actually the exception, in that Newtown showed an increase of approximately 4% in closed first quarter units.

Inventory is trending as one would expect in a buyers market.  Inventory is up from February in all markets.  If you compare inventory levels at the end of March 2008, with March 2007, the results vary from market area to market area.  For example, Lower Makefield's inventory of homes was lower at the end of March this year, than last year, by almost 22%.  Newtown, Upper Makefield and Solebury are higher, as is Buckingham and Northampton. 

Average days on the market are higher over a year ago, reflecting tougher market conditions for sellers. 

Looking at sold/list ratios, shows slighly increasing discounts of between 6 & 10 percent in most markets.

Despite all of the above, the market contines to be extremely price sensitive.  There are still many examples of houses selling quickly, and selling for close to the asking price.  For example, I recently had a listing right in Yardley Boro, on the main street.  It sold in 2 days, for almost exactly the asking price.  Where is the press when that happens!

The message from looking at all of these statistics is that houses are selling every day of the week.  If it is priced correctly, and marketed correctly, it will sell.  It is still a buyers market, but there are still buyers looking, and buyers are making offers. 

In future posts, I will delve into the statistics a little deeper, and I will also reflect on some additional observations about the current market.

 

View more entries tagged with: Yardley, Upper Makefield, Newtown, Solebury, Buckingham, New Hope

Trenton Public Education Foundation Receives Grant For OutStanding Performance

Apr. 7, 2008

 Today's Featured Property

 I have been extremely blessed over the years, to have been able to develop a very successful, and busy real estate career.  Those who know me, know that I am also very committed to giving back to the community.  One of the areas that I feel incredibly passionate about, is education.  I can’t emphasize enough, how strongly I feel about the value of education, as a tool to solve many problems, both here in the United States, as well as problems across the globe.  Because I feel so passionate about education,  I am a board member of the Trenton Public Education Foundation. (http://www.TPEF.org)  For those who are not familiar with the area, the Trenton school district, is pretty much, a poor, inner city, district.  Despite what is often found in the newspaper, there are amazing students, faculty and administrators, in the district.  Our organizations mission is to broker, foster and leverage resources that enhance and promote educational opportunities for the students in the Trenton School District. 

At one of our events, I met am incredibly dynamic and committed teacher at Trenton High, who was teaching a course at Trenton High in media technology. We as a foundation, are trying to provide high school students with an opportunity to see life outside of their neighborhoods, and to get an idea of a future career path. This particular class is apparently very popular, at the school. Our foundation awarded the teacher, a 1000 dollar mini grant for her program. She elected to use the money to upgrade the software she was using. She wanted to purchase the latest version of Adobe photoshop, which is basically an industry standard, for anyone looking to get into any design related field. This all sounded great, except that the computers in the school were so old, that the new Adobe software would not run on them, which gets me to the point of my current blog post. Having met this teacher, and having met students, it was driving me crazy that here was a dynamic teacher, who could make a real difference in the lives of her students, who was being thwarted in her efforts, by outdated tools. The teacher reached out to our foundation, to seek our help in trying to find a way to upgrade the computers at the school. I am extremely proud of the fact that, through a contact that I have with a very large foundation, I was able to secure a grant for 10,000 dollars, so that we could buy 6 completely new, IMacs for the school. The teacher is able to enhance her program, and the students will be completely familiar with industry standard equipment, should they decide to embark on careers in any design type of work. I know that this class is extremely popular with the students. The teacher told me that because of the interest in the class, the students are often not ready to leave the class room, when the class ends. I have seen some of their work, and it really is amazing.

I was really proud of my involvement in securing this grant, and creating such a wonderful educational opportunity for the students.

 I understand that this post may not be directly related to real estate, but in a sense, all of our communities can be better places, if we try and make a positive difference in the lives of others. These kinds of efforts mean a great deal to me.

I have been extremely blessed over the years, to have been able to develop a very successful, and busy real estate career. Those who know me, know that I am also very committed to giving back to the community. One of the areas that I feel incredibly passionate about, is education. I can’t emphasize enough, how strongly I feel about the value of education, as a tool to solve many problems, both here in the United States, as well as problems across the globe. Because I feel so passionate about education, I am a board member of the Trenton Public Education Foundation. (http://www.TPEF.org) For those who are not familiar with the area, the Trenton school district, is pretty much, a poor, inner city, district. Despite what is often found in the newspaper, there are amazing students, faculty and administrators, in the district. Our organizations mission is to broker, foster and leverage resources that enhance and promote educational opportunities for the students in the Trenton School District.

View more entries tagged with: Martin Millner, Trenton Public Education Foundation, Coldwell Banker, Community Services, Grants Education

Bucks County, PA Market Update

Mar. 24, 2008

With the so-called spring market, upon us, I wanted to take an opportunity to review some market trends and statistics for our area.  I do a complete review and analysis, of all pertinent statistics on a monthly basis, for all the major markets in Bucks County, that I work in.  As I have noted in previous posts,  Bucks County has held up reasonably well, compared with other areas in the country.  Real estate markets are extremely local.  Even within the communities that I serve, in Bucks County, there  are always statistical differences in the real estate market, from month to month.

Click here to view the Inventory by month

Lets take a look at where things were, at the end of February.  Please keep in mind, that looking only at January and February of 2008, does not necessarily create a trend.  About in the middle of April, I will have complete first quarter results, so we will be able to see a true trend, for the first quarter of the year. 

Click here to view the Pending Inventory by month

Generally speaking, January was actually a strong month, compared with January of 2007.  In virtually every market area of Bucks County, February was generally lighter than last year.  As a result, the volume of closed units for most parts of Bucks County was lower than the prior year, through February, as compared with 2007.  This should come as no surprise, since we all recognize that it is a buyers market.  More houses for sale, and fewer buyers to buy those homes, results in a buyers market.

Click here to view the Sold Inventory by month

As an example of the differences from market to market, closed units in Lower Makefield Township are off 17.5%, Upper Makefield Township is off 11.1% and Solebury is off 21%.  Buckingham is flat and Northampton is down 9.4%.

More importantly, inventory changes from January are up in Upper Makefield, Solebury and Northampton, while Lower Makefield, Newtown and Buckingham, actually saw a decrease in inventory from January levels.  If you compare current inventory levels to February of 2007, Lower Makefield, and Buckingham are down, while Newtown, Upper Makefield, Solebury and Northampton are all up, meaning those townships had more homes on the market at the end of February 2008, than at the end of February 2007.

Interestingly, the average asking price of homes in inventory as of February 2008, in all of Bucks County, is slightly higher than it was in February of 2007.  I believe that there is still somewhat of a disconnect between market realities, and what sellers are anticipating selling for.  Unfortunately, I think there are times when we, as realtors, play a part in that by providing false expectations.  There is no question that it is a tough market, for sellers.

The last important statistic, is the sold to asking price ratio.  We continue to see slightly increasing discounts off the asking price, ranging from 4 to 11%.  Overall, buyers are achieving approximately a 6-7% discount range from the asking price in our principal markets.

The important observation from all of this is that the market remains challenging for sellers.  It is absolutely critical that a home be priced correctly in order to sell.  It is still possible to sell quickly in this market.  I recently had a home on the main street coming into Yardley, that sold for about the asking price,  in a couple of days.  If you are looking to buy, it does appear to be a great time for that.  Lots of inventory, motivated sellers, and low mortgage rates. 

I will update further, once we have the complete first quarter results.

 

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Bucks County community events

Mar. 13, 2008

I wanted to let everyone know of a wonderful opportunity to hear Juliard performers, in Bucks County. As many of you know, I am passionate about music, of all genres.  I listen to WXPN, which is the radio station at the University of Pennsylvania.  They play the most eclectic mix of music that you can find, anywhere. (http://www.xpn.org) 

I just learned that violist Victoria Voronyansky will perform a delightful concert, "Inspired by Spring: a musical homage." (http://www.redviola.com) For this performance, Ms. Voronyansky will be joined by Evan Solomon, a superb pianist who has collaborated with the likes of Itzhak Perlman and Sarah Chang.

The performance will take place on Friday, March 14th at 8PM in Anchor Presbyterian Church, located at 980 Durham Road, Newtown, Pa. 18940. 

With tickets priced at $20 for adults and $10 for senior citizens, students and children this is a great opportunity to hear world class music, right here in Bucks County. 

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The Truth About Real Estate In Bucks County

Mar. 6, 2008

I have written a few posts recently, about the state of the real estate market in Bucks County.  In those posts, I have consistently pointed out that our local market, is not doing all that badly.  That is especially the case when you compare what is happening in Bucks County, with what is happening in many parts of the county.   If you listen to the national press, you would assume that the bottom is falling out of the real estate market in Bucks County.  I have been extremely frustrated with our local  press, because until recently, there have been very few articles that accurately portray the state of the local market.  In case anyone has not told you, real estate is, and always has been, local.  What is happening in Florida, Arizona and California, has nothing to do with what is happening in Bucks County.

The chart actually documents, from data taken directly from our MLS system, that there were more closed units in Lower Makefield Township in 2007, than in 2006.  You would certainly not know this, from reading the local newspapers.  This is not to suggest that our market is not a, “buyers market”.

I found a couple of very well written articles, in local publications, that very accurately portray the state of our local market.  First, the current issue of Philadelphia Magazine, has on its cover, the following headline, “Philadelphia, Smile.  Your house is worth more than you think.” 

In the article, the author points out that the general Philadelphia metropolitan area, of which Bucks County is included, is holding up quite well, compared with other parts of the country.  The article explains why the Philly area market is better than you are being told.  He points out that the area economy is still strong.  Another point made, is that we are a primary residence market, for the most part.  There was never a lot of speculative buying, during the hectic, appreciating years.  As a result, although prices appreciated nicely in the Bucks County area, they did not appreciate as much as they did in more speculative areas.  Conversely, as other parts of the country have crashed, our landing has been much smoother.  The article dispels several other myths about the local real estate market.  I highly recommend getting a copy of the article.  If you are reading this, and would like a copy, please let me know, and I can send it via email.

The second article, was a column in the Philadelphia Inquires, this past Sunday, by the papers real estate columnist, Alan J. Heavens.  Alan talks in his column, about real estate from a historic perspective.  He says, “Real estate is local as local as a block.  Forget the web nuts and NBC nightly news.  There is no national housing market.”  Further, he observes that if you are thinking of selling but worried that the housing market is glutted.  Forget it, he says.  Houses linger because they aren’t priced right for the market.  How true!

Interest rates are low, and there is mortgage money available, despite the challenges of the sub-prime lending fiasco.

In a nutshell, as I have been saying recently, the real estate market in Bucks County is not as bad as the press would have us all believe.  Houses are selling every day.  The spring market is upon us and I will report on how the first quarter faired, once we get through March. 

In another post, I will provide some additional statistics for other Bucks County markets. 

View more entries tagged with: Bucks County Real Estate, Pennsylvania Real Estate, Philadelphia Real Estate, Martin Millner, Real Estate

Bucks County Market trends

Feb. 27, 2008

I finally saw an article in the local press, yesterday (Feb 26th) that accurately described our local market.  Here is a link to the entire article, which appeared on the front page of the Philadelphia Inquirer. (http://www.philly.com/inquirer/real_estate/Houses_still_find_eager_buyers.html)  Basically, the article said that there are still situations in our current real estate market, where houses attract more than one buyer.  Essentially, it comes down to price.  If a house is priced appropriately, it will get shown, and it will sell.  According to the article, for all of 2007, the median price of houses sold in Bucks County, was down 0.3%, in 2007, which represents a pretty insignificant drop.  Even in terms of units, for the entire county, Bucks was off 4.4% for the previous year.  Again, if you read all of the national articles, you would presume that Bucks County is experiencing a real estate depression.  That is simply not the case.

Looking at the statistics locally, from January, some of our local markets, are actually ahead of last year.  Lower Makefield Township is up by more than 15%, and is Newtown Township.  Solebury and Buckingham Township are down.  Inventory has increased in virtually of our markets, in January, from December.  However, if you compare inventory this January, with last January, most markets are actually showing less inventory than a year ago.  Again, this varies on a township by township basis.  Sales discounts still continue to average around 5% or so, from the asking price. 

What all of the statistics mean from a local perspective, is that the market in Bucks County is nowhere nearly as weak as it is in some parts of the country.  Although it is still a buyers market, homes that are priced correctly can and do sell, and they can sell for pretty close to the asking price.  I recently had a listing in Yardley Boro, that was priced right, showed well, and sold the second day on the market, for virtually the asking price.  (http://101nmainstreet.com/)

 

 

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Bucks County Real Estate, to open house, or not?

Feb. 17, 2008

I came across a very interesting article in one of our local newspapers, last week, regarding open houses.  http://www.nj.com/starledger/stories/index.ssf?/base/news-13/120253533995340.xml&coll=1#continue

The article focused on a 72 year old resident of a New Jersey town, who spends about half the year in Florida, and claims that he and his wife have been visiting open houses for decades.  They say in the article, rather proudly, that they never go with any intent to buy anything, they are just nosy and curious.  So, the question is, although realtor open houses are a long time staple of the industry, do they work?

I was very fortunate, early in my real estate career, to have met a motivational speaker/trainer, by the name of Mike Ferry, who was extremely opposed to open houses.  I have continued to follow that training, for the most part.  As the article referenced above points out, very few buyers actually ever buy the house they came to the open house, to see.  More often than not,  I have found that visitors to open houses are nosy, and the least motivated buyers.  What most realtors don't tell their seller clients, is that realtors do open houses, to find clients.  That's great, except it doesn't do the job that the seller has hired us to do, which is to sell their house.  I have always felt that an open house was perhaps the most passive marketing strategy available to a realtor.  You don't have any way of qualifying the buyer, or to find out if they are serious about buying a house, or not.

With statistics showing that more than 90% of actual buyers in my market place, find that the Internet is the most important place for them to find the house they ultimately buy, along with information from their realtor, to me, those places are the most productive way to market properties. 

I don't mean to ruffle any feathers, for those realtors that do focus on doing open houses, but if you are a seller, and ask those realtors for an honest and open assessment of why they are holding open houses, Sunday after Sunday, most will admit that they are using the sellers house as a tool to attract clients, in the hope of selling them something else.  Again, this is a very personal perspective, and I know that there are many, successful agents, who might not agree with me, but it is an interesting conversation to have.  I have found that the overwhelming majority of my clients, when told that I am not a big believer in the open house strategy, are relieved, and tell me that they hated the idea of doing open houses, anyway. 

As always, your comments are welcome.

View more entries tagged with: Bucks County, Yardley, Newtown Real Estate

Yardley Pa weekends

Feb. 11, 2008

I could write pages and pages about all the wonderful ways to spend weekends in Bucks County, and specifically, ways to enjoy the Yardley area , which is where I live.  One of the things that makes this area so fantastic, besides the area itself, is where we are, relative to great cities like Philadelphia and New York. To make this point, I will describe, what I consider to be, an almost perfect weekend, and from this, you will get an idea about some of the things we love to do.

Friday evening, my wife and I, had dinner at a wonderful bar/restaurant in Philadelphia, called GiGi. http://www.gigiphilly.com/ The food was wonderful, and since we dinning with our middle daughter, Lauren, and her friend, the company was wonderful as well.  Following dinner, we enjoyed a show at a small theater, called the Painted Bride. http://www.paintedbride.org/ The Painted Bride is an old theater, and is located in Old City, at 2nd & Vine. 

The reason this relates to Yardley, and Bucks County is that, center city Philadelphia, is only about a 30 minute drive from Yardley.  Philadelphia is very manageable, and is a great city.

On Saturday, after working for part of the day, my wife and I took the train into New York.  For those who don't know, New York City is only about an hour on the train, from either Trenton or Hamilton, which is only 15 or 20 minutes from Yardley.

Saturday night in New York, we went to hear an amazing singer-songwriter, Kristin Hoffmann http://www.kristinhoffmann.com/ at a club in the Village. http://www.caffevivaldi.com/ Kristin plays the piano and guitar, and her voice is incredibly beautiful.  Music is definitely one of my passions, and it was an amazing experience to be able to enjoy such a great performance, especially in such a cool environment.  Almost all of what Kristin sang, was her own music, but she sang a Sam Cooke song, "A change is gonna come", which is just a great song, and she also did a wonderful version of Amazing Grace. 

On Sunday, we enjoyed brunch at Marseilles http://www.marseillenyc.com/index.php and saw the play, "39 Steps", on Broadway. http://roundabouttheatre.org/39steps/index.htm

It was a great weekend, and again, relevant to Bucks County, because all of these wonderful opportunities, are within an easy drive or train, from our home.

 

View more entries tagged with: Bucks County, Weekend Plans, New York, Philadelphia

Recognize stroke symptoms for quick treatment

Feb. 5, 2008

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Super Bowl Sunday in Bucks County

Feb. 3, 2008

The big day has finally arrived.  It is Super Bowl Sunday!  Here in Bucks County, I have to say, it does not feel like an early February, Super Bowl day.  The temperature is in the 50's, and the local golf courses are doing an incredible business, considering it is mid-winter.  http://www.makefieldhighlands.com/layout9.asp?id=133&page=1869

I think the biggest challenge for our Philadelphia area, is who to root for.  Bucks County is right on the edge of the Philadelphia metropolitan area, but also close enough to New York, that there are many avid New York supporters.  For most sports, I am a Philly sports phanatic.  I root for the Sixers in basketball, and the Eagles in football.  My rooting interest in baseball is somewhat odd, considering where we live.  I have been a Chicago White Sox fan, since I was about 7 years old.  As a topic for another post, I do remember the White Sox days of Nellie Fox and Luis Aparicio. 

The challenge for today, though, being an Eagles fan, is to try and figure out who to root for in the Super Bowl.  Personally, I am rooting for the Giants.  I did not come to this position easily.  If you root for the Eagles, it is almost sacreligious, to root for the New York Giants.  The only thing worse, would be to root for Dallas.  I view this process as choosing the lesser of two evils.  I have had enough of the New England Patriots, Tom Brady and their coach.  I am sure part of that is jealousy, since it has been decades since Philadelphia has won anything.  I admire how the Giants have reached this spot, considering where they started from.  The problem is, I will have to deal with listening to the gloating New York fans, who call into Philly sports talk radio. http://www.610wip.com/

The Philly-NewYork thing, really makes for an interesing rivalry.  Both cities have incredibly passionate, supportive fans.  However, for today, I am a Giants fan.  I will deal with the consequences should they win.  In the meantime, my kids might ask me to sit on the other side of the room from them.  They are of the mindset, that you can't be a true Philadelphia fan, and cheer for the Giants.  It should all be fun!

Enjoy the day.

 

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Bucks County Real Estate trends

Jan. 28, 2008

In an interesting article this morning, the Bucks County Courier Times,  finally acknowledged what I have been discussing with buyers and sellers for all of 2007, which is that, although we in Bucks County are experiencing a difficult market for sellers, things are nowhere nearly as bad here, as they are in many parts of the country.  As the article states (http://www.phillyburbs.com/pb-dyn/news/111-01282008-1478346.html) "Bucks County fared better than the region and the nation, in home sales last year. "  For all of Bucks County, according to market statistics, the number of home sales declined by about 4%, for all of 2007, from 2006.  To put that in perspective, nationally, home sales dropped 13%, between 2006 and 2007.

Even within Bucks County, individual Townships and Boro's, did not necessarily perform exactly the same as the county as a whole.  For example, according to our MLS statistics, Lower Makefield Township actually had an increase in the number of units that sold in 2007, as compared with 2006.  (439 units closed in 2006, 460 closed in 2007)  Upper Makefield actually saw a 12% drop in the number of sold units from 2006 to 2007. (125 sold in 2006, while 110 sold in 2007)

Interestingly enough, despite the tough market conditions, inventory of homes actually declined in virtually all of the Bucks County markets, from November 2007, to December 2007.  This was the case in Lower Makefield, Morrisville, Newtown, Soleburry, Buckingham and Northampton.   What this all means, is that in terms of months of inventory, several markets are actually trending towards a more balanced condition.  For example, Lower Makefield had approximately 5 months of inventor, Newtown Township had 6 months of inventory, as did Northampton Township.  Upper Makefield and Solebury remained solidly in a, buyers market, scenario.  Upper Makefield and Solebury, each have approximately 14 months of inventory.

What all of this means to buyers and sellers in Bucks County, is that it is a mistake to presume that nothing is selling.  Buyers are making offers every day, and sellers are accepting offers every day.  Interest rates have dropped to almost historic low levels, and there are still lots of choices for buyers.  Buyers are actually seeing an average of 5% discount from the list price.  As always, price is critically important.  Overpriced listings will stay on the market and get stale.  Listings that are priced correctly, given the current market conditions, do get shown, and will attract offers. 

For those reading this post, who are in Bucks County in Pennsylvania, or Mercer County, in New Jersey, I have a program that allows a consumer to track from their own computer, sales activity in their neighborhood, and the program will actually show how long homes stay on the market, and it will also track discounts from list price.  In addition to that, it will track pricing trend lines, so you can really see what prices are doing, in  your specific neighborhood.  If you are interested in that, just drop me an e-mail, and I will set it up for you.

 

 

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New year's post

Jan. 10, 2008

Since this is my first post of the new year, I wanted to wish everyone a very happy, healthy, peaceful and prosperous, new year.  In whatever way, or whatever holiday you celebrated, I hope that you had a chance to spend time with your family and loved ones. 

I always love the holiday's because, although real estate activity tends to slow down, I have the opportunity to spend more time with my wife, Jane, and our children.  We have 3 children, and are fortunate that we are so much a part of their lives.  Our oldest daughter, Rachel, is a practicing psychologist with offices in Yardley, and Lawrenceville.  She is also on the staff of Einstein Medical Center, in Philadelphia.  Our middle child, Lauren, owns a Coldstone Creamery Ice Cream store, just outside of Princeton, and our youngest, Michael, who graduated from the University of Maryland a couple of years ago, is tending bar in Philadelphia, while he figures out what he wants to do with the next chapter of his life. 

Every year, at our annual family new year celebration, we go around the room and ask every participant to express what they were thankful about from the past year, and to also say what they are passionate about for the upcoming year.  In my case, I feel incredibly fortunate to have such a great family.  We are close to all of our kids, and their significant others.  We have fun together, and most importantly, we are all healthy!  On a personal note, one of my goals for 2007, was to start to learn how to play the guitar.  I love music, and it is something that I have wanted to do for years.  As each year passed, I got a year older, but still could not play the guitar.  About 6 months ago, I finally started to take lessons. I absolutely love it, and practice virtually every day.  Who knows, maybe by the end of this year, I will be ready for public consumption.

Besides my family, music, and basketball (which I play about 3 times a week) I am very passionate and committed to giving back to the community that has been so good to us.  I am still involved with the Trenton Public Education Foundation.  I am working on an exciting project that I was introduced to by a wonderful teacher at Trenton High, who is offering a program to students, called, "From snapshots to the workplace: using industry standard software to engage students in a career focused course."  The Trenton school district is a very poor district, and unfortunately, their computers are so old and outdated, that they actually will not run current industry standard software.  I am working, through a foundation that my daughter is involved with, on getting new Mac computer systems into the school, so that the teacher can offer this exciting opportunity to her students.  I passionately believe that many of the worlds problems can be solved through education and economic opportunity.  I believe that people who are educated and have an economic future, don't generally blow themselves up, or shoot their neighbors.

Another charity that I am happy to have supported, is CARE. (http://www.Care.org)  This outstanding organization helps disadvantaged women all over the globe.  A wonderful group of women, called, "The Web Women's Giving Circle", (http://www.realtown.com/caremoregivingcircle/blog) re-introduced me to this outstanding charity. 

So I realize that this post included nothing specific about real estate.  In future posts, I intend to offer some very interesting observations from the National Association of Realtor's (NAR) profile of home buyers and sellers, which I just received for 2007.  I will also update everyone, statistically, with what is happening in our local market. 

As I end for now, I just wanted to thank again, all of the buyers and sellers who have honored me by trusting me with their real estate business.  All the best to everyone, in 2008!

 

 

 

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September market trends

Nov. 2, 2007

One of the things that I have found extremely frustrating, regarding the local real estate market, is that, although our market in the general Bucks County area has clearly become a, "buyers market", it is not as bad as most local press reporting would indicate. A farily common question that I get from sellers recently, is whether any houses are selling? The answer is that houses sell in our area, every day. The market is extremely price sensitive, so that it is more important than ever, to price a house correctly. Overpriced homes will stay on the market for a very extended period of time, in this market. It is also important to be pro-active in responding to the way the market responds to the price.

From a statistical standpoint, in most of our markets in Bucks County, the year to date sales pace continues to track below 2006. There are a few acceptions, notable Lower Makefield Township is actually about 2% ahead of last year, and Upper Makefield is about 8% ahead of last year, based on units. (This is for single family homes) With regards to inventory units, there were also differences from market to market, within Bucks County. For example, inventory in Lower Makefield declined sequentially from August of 2007, while many markets added inventory in September. Upper Makefield was about even month to month, while Buckingham increased inventory by approximately 13%, and Solebury added about 4% to their inventory. Newtown was down by almost 12%. In terms of translating that to months of inventory, Lower Makefield currently has about a little over 7 month supply, Newtown shows a 6 plus month supply, while Upper Makefield and Solebury actually show a 14 plus month inventory supply.

Average list prices of homes in inventory as of September in all of Bucks County remains up somewhat over last year, while the sold/list ratios in most markets show continued greater discounts versus last year. Overall, buyers are achieving approximately 5% discount from list price. This number is extremely property specific. I have recently had sevearl situations both with listings and with buyers, where homes sold for almost exactly, if not exactly at the asking price.

Please contact me if you are interested in seeing the specific spread sheet reflecting all of the numbers. We track this every month.

Hope you find this information helpful in analyzing the market. I will be more diligent in posting this information every month.

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Staging Advice

Jul. 5, 2007

In a recent post, I had a home inspector with whom I work on a regular basis, post an article about the entire home inspection process.  Considering the fact that the market for sellers is very weak right now, I can't emphasize enough how important it is for sellers to give themselves the best possible opportunity to make sure that their home shows as well as it possibly can.  To help with this process, I frequently recommend a process we call "staging".  Essentially, staging is a step we take to maximize the emotional appeal of the house to prospective buyers as the house is shown.  To elaborate on the benefits and explain how staging works I asked Wendy Kokinda of Larsen Redesigns, (http://www.LarsenReDesigns.com) to write a post describing what her company does.  From personal experience working with Wendy and her partner Colleen, I can say that they do a fabulous job.  My thanks to Wendy for her help with this.

 

STAGING . . . The New Buzz Word in Real Estate                     

As I go forward with my business, I find it incredibly amazing that the concept of staging has not truly penetrated the real estate industry on the East Coast as extensively as it has on the West Coast.   In this very difficult selling market, there is an elevated inventory from which a buyer can shop. Presently buyers, in essence, have “the pick of the litter,” and that is exactly the issue at hand. How does one make their listing stand out from the rest? As you know, buyers purchase most everything on emotion. They buy things they like or even things they fall in love with. Real estate property is not differentiated from other things that buyers purchase, it’s just more expensive than a pair of jeans or a car. If the house doesn’t create an emotional bond with the perspective buyer, the buyer will “walk” and they will just look at the next house on the list. Notice I am referring to the “house” not the “home.”  One thing I always encourage my staging clients to do is to realize that they need to consider that their “home” becomes a “house” and this “house” is now a product.  Our objective is to market that product the best way that we possibly can.

How do you do that . . . you ask? STAGE your listings!

Visual appeal creates an emotional bond between the buyer and the “house.”  You only have one chance to make a good first impression. The expression is so true. From the front curb to the back property line, it is imperative that the entire property display itself in the best possible manner. A house with a well maintained lawn and trimmed trees is going to translate a subconscious message that the “house” is well maintained and will lure the buyer to the next step . . . to see the inside of the “house.”

Creating better visual appeal is the ultimate goal of a Real etate staging professional. De-cluttering and de-personalizing are all natural and obvious changes that need to be made to a home to help the sale of a property. But it goes much deeper than that. Furniture placement, adding decorative elements and creating a model home effect are just a few things Stagers can do to make a difference in a “house” that needs some esthetic help.

Staging a house can make a tremendous impact in the success of a timely sale of a property in this present climate. Staging statistically increases the profit $$ to not only the seller but also to the real estate agent as well. In addition, staging will help to decrease the days the house is on the market. The fact is, a staged house is more desirable than one that has not been staged.

For a reasonable fee, the staging professional will do an initial evaluation of the property by gathering important information and taking numerous pictures of the house. A report is then produced and presented to the homeowner defining the issues that exist in the property that may inhibit a timely sale. A “to do” list is given to the homeowner along with a proposal and contract to have the staging professional return to stage the property. The staging fees are extremely variable and dependent upon the amount of work to be done and time invested by the staging professional. Rental furniture can be obtained for vacant homes as well.

The time period in which this entire process will occur can be a week or two. It is advisable to bring the staging professional in after the listing agreement has been signed but before all multiple listing pictures have been taken. Wouldn’t you want the photos to have the best possible appeal and your listing to display itself the best manner possible?

Staging can make a tremendous impact on the increased salability of a home. Staging = a quick sale & higher profits = a happy seller = more referrals = future business! You come out a winner! Staging works!

Wendy Kokinda is an Interior Redesign Industry Specialist and a Certified Interior Staging Specialist. Colleen Stasinchak is an Accredited Staging Professional. They are partners in Larsen Redesigns, an Interior Redesign and Staging company located in Bucks County, PA  www.larsenredesigns.com  215.752.9021 

 

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Inspection follow up

Apr. 16, 2007

I have to apologize for the long delay in following up with another post to my blog.  I will make a concerted effort to post more frequently.  

Although the weather does not feel like it, we are now officially in the "spring market" stage of the real estate calendar.  Many buyers and sellers are looking for settlements after the close of the school calendar in June.  If you are in that category, just a quick word of advice regarding planning for your move:  The end of June and end of July are the two busiest moving times of the year.  Movers get booked for those dates very quickly.  Once your real estate transaction is secure -- meaning that the inspections, etc., have been completed satisfactorily -- call to book your mover as soon as possible.  That should prevent you from not being able to work with the mover of your choice.  If you are reading this blog and looking for good movers, please contact me so I can forward the name and phone number of an outstanding mover who can handle moves just about anywhere in the world.

The spring market is the busiest real estate season of the year.  As a follow up to my last post about finding a home inspector  my friend, a home inspector, offered the following brief suggestions for buyers and sellers:

Three Tips for Buyers

1.   New is not always nice!   There have been a lot of newcomers to the “building or rehab business" in this last boom.   The quality of the workmanship for many of these newcomers can be incomplete, improper, or not up to current standards.  Beware that many problems that will result will not manifest themselves for many months or even a few years.  Also, the warranty is only as good as the person who issues it.  Look for reputable, experienced contractors.

2.  What did they say!   Check info from sellers.   When did the roof leak?  How often did they say the basement gets went?  Who did that plumbing repair?  When did the stream in the rear yard flood?  Look at the Sellers Disclosure.  Ask for an explanation and an update before closing.  Be clear and be sure that you understand what is being presented.

3.  Is it straight!  Walls and ceilings that are not straight and level may just indicate normal settling or may never be explained.   But these can also represent major structural failures.  Beware and get a qualified opinion.

 Three Tips of Sellers

1.   Tell It All!   Today’s legal standard is “Seller Beware”!  To save  potential conflicts or lawsuits, be sure to disclose all known defects or repairs to any potential buyers.   Show and document everything.  

2. Patience!   Be patient with all of the new contingencies and inspections people will ask for.  Remember you may be doing the same to the sellers of next house you buy.

3. Avoid “Let’s make a deal again”!  The house is finally under agreement;  It hard enough in this market to get your deal.   But then along comes the buyer’s home inspection.  Now the buyer wants this and did not realize that.  Avoid the renegotiation surprises by getting a home inspection done before you put the house on the market.   This can also be part of your disclosure.

The above comments were posted by Vince Tecce of the Building Inspector of America.  Vince can be reached at 215-321-3151.  I have personally worked with Vince for years and he does comprehensive and excellent home inspections.  His website is at the following URL: http://www.TheBuildingInspectorofAmerica.com.

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Home Inspection

Mar. 13, 2007

In today's real estate environment, it is almost unheard of to buy a house without having the sale contingent on a home inspection.  After many years in the business -- and having been through hundreds of home inspections -- I have worked through a variety of inspection issues for both buyers and sellers. In that time I have seen many different types of home inspectors, some of whom I would recommend and others I would not.

What makes a good home inspector?
In Pennsylvania, the home inspector has to be a member of one of the national home inspector organizations.  One of those is ASHI, which stands for the American Society of Home Inspectors (http://www.ashi.org/). The standards for becoming a home inspector have changed over the years.  Today, it is tougher to become an inspector than it was 10 years ago.  To be a member of an organization like ASHI, the inspector has to subscribe to their standards and meet the necessary cirteria to become certified.  

What to look for in an inspector
I believe that it is essential for a home inspector to be able to communicate clearly and effectively to the buyer or seller in which they are representing.  The inspector's report must be clear, ledgible and detailed.  In looking for an inspector, I would suggest requesting a sample report so that you can decide whether the report is clear, concise and understandable. The inspector must be be thorough and be willing to stand behind his report. I have seen reports where the home inspector does nothing more than suggest having qualified professionals evaluate almost every component in the house.  You could have done that yourself! You didn't need to pay a professional a few hundred dollars to tell you to contact a plumber, an electrician, a roofer, etc. If the inspector is not able to inspect the condition of the systems and components in the house, why use them?  I recently reviewed a report where the inspector recommended a roofing contractor to evaluate the roof, an electrician to evaluate the electrical system in the house, an HVAC contractor to evaluate the heating and air conditioning system, and a plumber to look at some plumbing questions.  Why bother with the home inspector in the first place if they are not able to evaluate these systems and clearly state what the issues are?

When an inspector provides estimates in his report
Even though it is a bit controversial when the inspector provides estimates in his report, I personally like this approach because it quantifies the magnitude of the problem that the inspector is citing. Without estimates, it means that the buyer and/or seller are going to have to call out contractors to evaluate every issue in the inspection report.  Under no circumstances, should the home inspector or his/her company be involved with doing any of the repairs. 

Be careful when using a real estate agent's inspector recommendation
While it is ok to ask your real estate professional for a recommendation for a home inspection company, be very careful because this may pose a conflict of interest. Some home inspectors get most of their business from real estate agents who refer to them and this can cause an inherent conflict. You see, if the home inspector consistently finds problems with houses, they get a bad reputation with some agents.  They then worry that the real estate community will stop referring business to them.  Many times I have seen less-than-honorable agents refer only those inspectors who they think will overlook things in order to get the transaction to work.  

In fact, here's a recent example of this type of transaction: I represented a buyer who was purchasing a fairly new home (about 8 years old). This was an $800,000 sale and the house was built by a very reputable builder.  The inspector that I recommended has a reputation for being extremely thorough and detailed.  The agent for the seller actually expressed her dismay that I was using this particular home inspector.  While walking around the exterior of the house, the inspector explained to the buyer that there were issues with some flashing and, more importantly, suggested that every single window was failing.  The agent for the seller pulled me aside and rather nastily explained that this was exactly why she did not like this particular home inspector. 

A couple of days later -- after reviewing the inspection report with the sellers -- the agent very apologetically called to tell me that the sellers were in fact aware that the windows failed and that many houses in the development were experiencing the same thing.  The windows were still under a 10-year warranty so prior to closing all 60 windows in the house were replaced.  Had the inspector not noticed this issue, there would have been major water problems. In all likelihood, this would not have happened for several years at which point the warranty would have expired, thus leaving my client with the expense of replacing all 60 windows. 

The home inspection process is a critically important part of the home buying process.  Make sure that you don't ever take this step lightly.

 

 

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Make an Offer

Feb. 23, 2007

We, in the real estate business, say that the so-called "spring market" starts right after the Super Bowl.  Since the Super Bowl is now over, from a realtor perspective, the spring market is underway albeit in the very early stages.  If you are new to the market, or have not bought or sold real estate in Bucks County for a long time, I thought it might be helpful to disucss the process of making an offer so that you can be better prepared, once you reach that point in the buying process.

So lets presume that you have spent an appropriate amount of time getting educated about the market and the areas that you, as a buyer, are considering.  You have found the house of your dreams and wonder, what now?

It is time to write an offer 
The offer you sign contains all the terms and conditions which, if accepted by the seller, will allow you to purchase the house.  It is critically important to understand that in Pennsylvania the offer to purchase residential real estate will become a fully binding contract once signed by the seller.  You will be bound by all of the elements of that contract once it is fully executed by all parties. 

What is involved in making the offer? 
Once you have found the right house, your realtor -- assuming you are working with a realtor -- will help you answer all the necessary questions that go into the actual offer.  The first, and most obvious, is to determine what price you are offering.  Your realtor agent should discuss comparable properties as well as things like how long the property has been on the market.  Other factors that determine the price include the state of the market in general.  Is it a buyers market or a sellers market?  (The whole concept of pricing strategy could be a subject for a separate post.)  For the purpose of explaining the offer process you need to determine your offering price as the initial step in preparing the contract.

Establish a settlement date
Your settlement date is the day you go to closing and take title to your home.  The settlement date is often a very important element of the offer and can sometimes create an insurmountable obstacle.  The seller may require a long lead time if they are building a house, for example, and they are not willing to consider a temporary move. The buyer, on the other hand, may be relocating and need a very quick closing.  As an agent for the buyer, I try to find out in advance exactly what the seller is looking for so I can see whether this is going to be an issue.  When representing the seller, I try to encourage the seller to be flexible, if possible, so they don't create obstacles for buyers making offers.

How will you finance your new home?
Once you have established the price and closing dates, you need to specifiy how you will pay for the house.  It will be necessary to submit a check with your offer as an initial good faith deposit. In my contracts, the most common initial deposit paid by the buyers is $1,000.00.  Again, in general, if the property is listed with a real estate broker the deposits are held by the office representing the seller.  The deposit or deposits paid by the buyer towards the purchase price are called "escrow" deposits.  The purpose of the escrow deposit is to provide some assurance to the seller that the buyer will not walk away from the transaction for a frivulous reason.  It is important to note that the amount held in escrow is completely negotiable.  In most contracts in Bucks County, the buyer will be expected to make a second, and more significant , deposit into the escrow account aproximately 14 days following the full execution of the contract.  This must be structured into the agreement at the time the offer is written.  The only way that the buyer would forfeit the escrow deposit is if they default.  A default would occur if all of the contingencies in the contract are met but the buyer failed to go to closing.

The next step in the process of preparing the offer is to determine the mortgage amount, if any, and the acceptable terms of the mortgage.  The mortgage contingency clause is extremely important; it basically says that if the buyer is not able to obtain a mortgage for the amount and terms specified in the contract they can cancel the contract based on this contingency.

Next is to determine whether the sale will be contingent on a home inspection, radon inspection and wood destroying insect inspection.  These are the most common, but not the only, inspection-related contingencies.  Some additional inspection type contingencies are swimming pool inspections, septic inspections and well water inspections.  There are a couple of different ways to structure the inspection contingencies and they must be spelled out at the time of preparing the offer.

The actual contract that you will sign in making your offer will define in detail how all of these contingencies work.  As a buyer, you will be asked to review and sign the actual sales agreement.  There are a couple of additional documents that are expected when making an offer on a house.  The one that is often the most confusing to buyers is the Buyers Financial Statement.  While not a legal requirement, the agent for the seller will expect the buyer to complete a statement the details the assets and liabliities of the buyer along with their employment information.  The realtor representing the seller will also expect the buyer to have at least a mortgage pre-qualification letter from a lending institution.  It is a good idea to get these things together before you start the process of looking for homes.  That way, you will be fully prepared if you find the right house.

I hope that this brief overview of the offer process is helpful.  The standard Pennsylvania Association of Realtors (PAR) contract is extremely thorough and well thought out.  There are several options in completing many of the clauses; some are biased towards the seller and some towards the buyer.  It is critically important that your realtor be able to fully explain all aspects of the agreement to you.  As I indicated previously, once you sign the agreement it is fully binding when signed by the seller.  In another post, I will review the sales agreement and will explain all aspects of the agreement in greater detail.  In the meantime, you can review a blank copy of the agreement on my website at www.MartinMillner.com.

 

 

 

 

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