I recently completed 2 very smooth real estate transactions, in Lower Makefield Township, just minutes from Yardley, in Bucks County, Pa.

I represented a buyer in one of the transactions, and the seller in another.

Both the buyer and seller, had very similar comments following the transaction.  They both said that although they had been warned by family and friends, that real estate transactions these days are always difficult and extremely stressful, they found their transactions to be very smooth, and without much of the stress they anticipated.

They both attributed their experience to the fact that they followed my advice, and also that they worked with people that I recommended.

I thought it might be helpful to share with you the names of the people who help make me look good, and who contribute towards  such smooth real estate experiences.

Vince Tecce, of the Building Inspector of America, did the home inspection for the buyer.  As a result of his inspection, the buyer was able to negotiate a credit of more than 2,000 towards inspection repairs.

Lisa Stump of Mnet Mortgage, provided the mortgage for the buyer.  We received our mortgage committment right on time, and Lisa was there at closing, to be sure that the buyer understoond every document they were signing.

Kathy Weber, of the Laureson Agency, provided the buyer with insruance for the house they were buying.  Kathy took the time to explain, in detail, various coverage options, so that the buyers could make informed decisions about their home owners insurance policy.

On the sellers side, we were asked to make several repairs to the house, as a result of the home inspection on their house.

Ed Sutter, of Sutter House HVAC, certified that their HVAC system was in proper working order.

Ed Kaplan of EZ Bears Handyman Services, completed several, small, general repairs prior to closing. (215-300-4700)

Dominic Mormando, of Mormano’s Plumbing, took care of a couple of plumbing issues.

Rich Kohn, of SBS Electrical Services, solved a couple of electrical issues. (215-499-2255)
Isaac Pressley, of Isaac’s Cleaning Service, thoroughly cleaned the buyers house before they moved in, and the sellers house, before the new owners moved in.    Cleaner houses you will never see (215-431-1879)

Finallly, Rich Crocker of Broaday Moving and Storage provided a stress free move.

I greatly appreciate the hard work that all of the above people do, which helps me provide such wonderful support for my real estate clients.

Every one of the people who helped with the transactions that I referred to, have worked in my house, at one time or another.  This is just another way that I try and provide the best possible real estate experience.

The end of April, represented a pretty important milestone, with regards to how real estate will perform, in the coming months.  As everyone probably knows, the tax credit expired at the end of April.  I also mentioned, in a previous post, that April for myself and my team, was extremely busy. 

In my own personal experience, of the 10 or 11 transactions that we were invloved with in April, there was really  only 1 that was particularly driven by the tax credit.  Having said that, all of the national real estate statistics, are showing that April, like November last year, was extremely busy. 

So where is the market heading, as we move into May, and into what is traditionally the height of the spring selling market in real estate?

My feeling about the real estate market in Bucks County, and specifically for the purpose of today’s post, in Yardley & Lower Makefield Township, is that we will continue to see relatively strong activity, at least in terms of the number of units that are sold.  If you look at the charts that I have created, for the single family home market in Yardley & Lower Makefield, you can see how the buyer activity of the past couple of months, has impacted the average days on the market.

It appears from the charts, that median pricing is remaining stable, but there has been a very clear, downward trend in the amount of time that it is taking homes to sell. 

I think that buyers today, are motivated by concern over the potential of rising interest rates.  For those buyers who are on the fence, there is very real worry, that if they wait until next year, interest rates could be higher than where they are, currently.  In the Lower Makefield and Yardley market, we are still seeing an inventory backlog of significantly more than 6 months, which means that conditions still favor buyers.  I have seen neighborhoods where a couple of months ago there were 3 and 4 homes for sale, and now they are all sold.  One of those neighborhoods, is Arborlea, in Lower Makefield.  We had a couple of listings in Arborlea that sold in just days. 

I think what the chart is showing, since inventory levels seem to be rising, is that there are a number of homes that are on the market, that are overpriced.  They remain on the market for months and months and months, in many cases.  Those sellers who are realistic, and want to sell, price their homes competitively, given current market conditions, and they often get strong offers, very quickly.

Check out the charts, and let me know what  you think.

Yardley, Lower Makefield Township real estate inventory & days on market

Median price VS. Days on Market for Lower Makefield Township/Yardley

This is a classic story that reinforces my belief that buyers of real estate are so much better off using a local mortgage company, than going direct to a large, national lender, or finding a lender on-line.

Check out the video for the story, but basically, the lender these buyers chose, was a very well known, enourmous national, bank. 

The bank was completely clueless as to how we work in Pennsylvania.  As amazing as it sounds, they didn’t even understand that in Pennsylvania, we fund loans the day of closing.  The buyers were selling a house in North Jersey, the day before their purchase, and the lender refused to do anything, including even preparing documents, until they had the copy of the HUD, (the closing statement) from the New Jersey settlement.  We sent the Hud 4 times, before they even acknowledged receiving it.

Most banks will send documents, etc, and just make that a final condition.

Although closing was scheduled for 9:00 AM, we never received anything from the bank, until almost 4:00, and all we got at 4:00, was a mortgage.  Didn’t get the note, didn’t get funding, and could not ever get anyone on the phone. 

The complete ineptitude, was absolutely amazing! 

This is not the first time I have experienced this.  If you use a local mortgage broker, you will have a local contact.  Generally that person will be at the closing, or if not, will at least be in control of what is happening.

Again, generally the rates are comparable, so you are not paying anything extra, for having the benefit of a local contact. 

The local contact will understand how our local market works. 

Please do yourself a favor, and work with a reputable, local mortgage broker.

Please feel free to share your thoughts and comments.

What this article explained, is consistent with what I have been telling people ever since the real estate bubble burst, which is, that our area has not been impacted anywhere nearly as badly as many other parts of the country.

Based on a report by IHS Global Insight, median real estate prices in the Philadelphia region, in the 4th quarter of 2009, were almost exactly where they were in the 4th quarter of 2005.  ($228,300 in 2009, vs. 227,300 in 2005)

The following were comparisons in other major metropolitan areas:

• Los Angeles 525,100 in 2005 Vs. 368,600 in 2009
• Las Vegas 287,000 in 2005 vs. 123,000 in 2009
• Miami 281,300 in 2005 vs. 180,500 in 2009
• Boston 359,300 in 2005 vs. 315,400 in  2009
• New York 496,800 in 2005 vs. 456,300 in 2009
• Chicago 294,400 vs. 210,700 in 2009
• Detroit 113,200 in 2005 vs. 71,800 in 2009
• Washington 399,000 in 2005 vs. 326,600 in 2009
• Phoenix 242,100 in 2005 vs. 146,500 in 2009

Iwould suggest, that real estate values in most parts of Bucks County, including Yardley and Newtown, are consistent with pricing trends in the Philadelphia metropolitan area. 

I believe that our area did not experience as wild an upswing, when the market was rising, as some of the more speculative areas in the country, like Florida and Arizona, and as a result, as prices have fallen, our drop has not been as dramatic, either.

I also agree with the article, that mentioned that Philadelphia is a stable area, where people grow up and remain.  I think the same is true of Bucks County. 

We also have a diverse, and relatively stable job market.  From a logistical perspective, folks in Yardley and Newtown,  commute in many different directions, so if a job is lost in one city, it is possible to find something in another city, without requiring a move.  Many people commute to both New York and Philadelphia from Bucks County.

If you have a chance, check out the article and let me know what you think.  Click this link to the Inquirer article.

For example, unless you are qualified, can you really tell whether the roof is in good shape, just by looking at it.

As I observe in the video, there is certainly nothing wrong with making a complete and thorough evaluation of the house, as a buyer, try not to lose sight of the fact that there will be a home inspection that will cover all major systems and mechanicals in the house.

Check out this video, which should make the process clear.

Had a buyer today, who is very motivated.  House is sold, and they need to find a home in Yardley, Newtown or close by, by the end of March.  Had 7 houses to show them today. 

Sellers of 4 houses of the 7, decided that this was a bad weekend, bad time, bad morning, bad afternoon, bad month….you get the idea.  Here is a memo to sellers.  No one will buy your house, unless they are allowed in to see it.  I realize that it is not fun, to sell your house.  Why not price it right, make sure it shows as well as possible, improve the condition, wherever possible, and encourage showings.  That way, you won’t prolong the agony. 

As a postscript, to my video rant, the buyers did find something they liked, and we wrote an offer.  To the 4 sellers who were too busy, they lost a chance with a very motivated, and realistic buyer.  Is it any wonder that homes are often on the market for months and months and months.

As always, let me know your thoughts.

I have pointed our in previous posts, that the statistics showed that the first time home buyer tax credit, that expired on November 30th, last year, clearly had an effect on the number of transactions that occured in November.

Here is a summary of the new and updated provisions of the tax credit, that was approved following the expiration of the original tax credit provision.

8,000 credit for first time home buyers who have a contract by April 30, 2010, and who close by June 30, 2010

6,500 credit for homebuyers who have lived in their current home for at least 5 years, and who wish to sell their home in order to purchase another primary residence.  This provision is new.   As above, the contract must be in place by April 30, 2010 and closing must occur on or before June 30, 2010.

Income limits have increased, so that couples earning as much as $225,000, and individuals earning up to 125,000 can quailify.  For single buyers with incomes between 125,000 and 145,000, the credit decreases, and for those filing jointly, it decreases with incomes between 225,000 and 245,000.

Homes purchased above 800,000, do not qualify.

If 2 or more unmarried individuals buy a primary residence, they can allocate the credit among the owners using any reasonable method.  The total amount allocated cannont exceed the 8,000.  A reasonable method is any method that does not allocate all of part of the credit to a co-owner who is not eligible to claim that part of the credit.  If you have questions about this, or any other provision in the tax credit rules,  you should speak with an accountant or attorney who is familiar with the tax credit provisions.

I think the most important element to keep in mind, is that in order to claim the credit, you must be under contract to purchase a home, by April 30th, 2010, and close by June 30, 2010.  I know this provision is impacting some of my clients, both buyers and sellers, who do want to be able to take advantage of the credit.  We are seeing houses come on the market sooner, and buyers looking for homes sooner than what is normally expected, at this time of the year.

Let me know what you think of the tax credit, and whether you think it will help the real esate market.