Marty Millner

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Realtor weekend in Yardley, Bucks County, Pa.

Thought it would be fun spending some time,  letting  you know how I am spending the last weekend in February.

Last night, we had wonderful Indian food, at the Indian Garden restaurant, in Lower Makefield Township .  Indian Garden has become one of our favorite, local restaurants.  They offer a wide selection of traditional Indian dishes, and everything we have had, has been delicious.  I highly recommend that you try it.

Today, Saturday, I played basetball for about 3 hours this morning.  I normally get to play basketball 3 times a week.  I do try and stay in shape, so in addition to basketball, my wife and I work out with an incredible personal trainer, Dr. Kareem Samhouri, at his gym, Global Fitness, LLC, in Bucks County.  Kareem has a doctorate in physical therapy, so he can address any sports injuries I develop, as well as helping us stay in shape.

Obviously weekends are busy times, for realtors.  This weekend is no different for me.   I spent the afternoon showing a couple of first time home buyers, houses in both Bucks County, and Mercer County. 

Tomorrow, I am meeting with a client at 10:00 AM, to review a home inspection report, so we can draft a reply to the seller.  Following that, I will be spending several hours with another first time home buyer. 

The houses that I have listed, are getting some activity this weekend, so I am hopeful that I may have to negotiate an offer. 

I also listed a house yesterday, so I am in the process of entering all the information in the MLS, and arranging for professional photography, and getting started with the various websites, that feature my listings.

All in all, not a bad weekend, considering we survived another major snow storm in the east.

I think most of us, here in Yardley, and all over Bucks County, are ready for spring!

If you are in the real estate market, please don’t forget that there are just over 60 days, until the tax credit expires.  To qualify, you must have a contract in place, by April 30th, and close by June 30th.

10 steps to success for first time home buyers in Bucks County

As I write this post, here in Yardley, Pa, I am enduring the 4th major snow storm of the winter.  If you are not from the area, we have already set the record for the most snow, since the weather people started keeping records! 

Supposedly, the spring real estate market starts, just after the superbowl.  Because of the tax credit, which requires that a contract to purchase a home must be in place by April 30, 2010, and the closing occur by the end of June, 2010, while the weather permits, I have definitely noticed an increased level of activity.

As a way of thinking of the spring selling season, I thought it would be helpful to review 10 steps that can help first time home buyers, make sense out of the home buying process and decision.  In future posts, I will expand on each of these steps.

Establish Your Budget early

I suggest that before you even start looking at houses, you should have a clear understanding of what you can afford to pay each month.   When working with first time home buyers,  I want them to be aware that there are a couple of issues in this first step.  First, is what the lender will quailify you for, and more importantly, is what you are comfortable paying each month.  They are often not the same.  It is quite possible that you can obtain a mortgage for an amount that is more than what you are comfortable paying.  Set your budget realistically, before you start talking to lenders. 

Get Pre-Approved for a mortgage

This is another critical step that should be taken care of early in the process.  There is no sense in looking at homes, before you understand what you are comfortable paying, as well as knowing what sort of loan amount you will quailify for.  There should be no cost for this service, and it can be done by phone with a lender.  The lender will review all aspects of your financial situation, including income, debt, credit score, etc in order to determine what you can qualify for.  I can write an entire post on this process, but I will leave that for future posts.

Research Neighborhoods and Home Prices

Thanks to  the internet, this is a fairly easy thing to do.  You can search home prices, school districts, etc, on a variety of websites.  I also suggest actually driving through potential areas, to get a sense of how they feel to you.  Do you perfer being in a town, for example, or a more suburban location? 

Find a Local Realtor

Obviously I am biased, but I believe that it is extremely beneficial to buyers, to use the services of an experienced real estate professional.  I recently represented a client who actually called me to set up an interview with me, before he commited to doing anything.  As it turned out, he was looking to buy a house in the Yardley area, and also had a house to sell in New Jersey.  I think it is a good idea to interview agents first.  You should ask questions, and make sure that you are comfortable with the agent.  Often times buyers will walk into an open house, not realizing that the agent sitting the open house is there as an agent of the seller, actually representing the sellers best interests.  By interviewing agents before you start actually looking, you can help ensure that you will have a qualified professional looking at protecting your interests.  In general, the fee is paid by the seller, from the proceeds of the sale.

Start House Hunting

Now comes the exciting and fun part!  When working with buyers, I feel that buyers learn something with each house we see.  It is important to understand the market, values, etc.  The only way that happens, is to look at houses.  Again, it is easy for buyers to search for houses on-line, and as your realtor begins to understand your tastes, he or she should also suggest homes that are worth visiting.  It will not take you long to begin to get a good sense of what houses are priced realistically, and what houses are not priced realistically.  A common question that I am asked, especially by first time home buyers, is how many homes they should see.   Usually once we start the process, the answer becomes clear, when we find the right house.  First time home buyers tend to look at more homes, than buyers who re-locate all the time.  As I said, this is part of the learning process.  Generally your tastes become clearer the longer you look, and the more you see.

Focus on the Permanent Features of the House

Remember, cosmetic changes are generally easy to make.  This like paint and carpet can ultimately be changed.  Focus on the things that you feel that you must have.  For example, if a basement is important to you, don’t compromise.  You can’t realistically add a basement.  Pay attention to the lot, the view, style of house, square footage, etc. 

Ask Plenty of Questions.

I can’t emphasize this point enough.  I really love working with first time home buyers, and I encourage them to ask every question they can think of.  There is no such thing as a stupid question, in my mind.  Becuase, as realtors, we go through this process every day, we can overlook things that to us are obvious.  I love answering questions, and feel that my experience and knowledge should be a resource for those that I work with.

Make a Smart Offer

Again, with the help of an experienced agent, you should make smart offers.  You should expect to review other recent sales in the neighborhood in which you are buying, so you can feel comfortable that you are making a fair offer.  A fair offer has nothing to do with what the seller paid, or even in some cases, what the seller is asking.   In general, your offer will be based on several contingencies.  The most important of those contingencies are the mortgage, and home inspection contingincies.  That means that if you are not satisfied with the home inspection, you will have the right to cancel the contract, and any deposit money you have paid will be returned to you. 

Be Prepared to Negotiate

You should have a plan in mind, in the event the seller does not accept your initial offer, which is very common.  How much will you ultimately pay for the house?  Be prepared to walk away if the seller is not realistic.  At the end of the day, you must be comfortable with the outcome, or move on.  Right now it is a buyers market, which means that conditions are favorable for buyers.  There are more houses on the market, than there are buyers for those houses.  In most cases, buyers are in a strong negotiating position.

Home Inspection

I mentioned this briefly, earlier.  It is critical to get a good home inspection.  This happens after your offer has been accepted, and the cost will range from 500 to 600, depending on exactly what components of the inspection are required.  The inspector will evaluate the foundation, roof, electrical system, plumbing, HVAC, among other things.  Following the inspection, you have the right to cancel the contract, or negotiate with the seller, as to who will pay for any repairs, if there are things wrong with the house.  You should feel comfortable with this process, as well.

I believe that by following these steps, you will help ensure that you will understand the home buying process and will make smart decisions.

These steps were compliments of the HomeBuyingInstitute.  Check out the website for great information about the home buying process.

Guess how long its taking to sell expensive homes, in Lower Makefield Township, Bucks County, Pa.

Selling houses in Yardley and Lower Makefield Township.

The single most important discussion I ever have with a seller, is the discussion about price. I always try and impress upon sellers, how absolutely critical it is, to price a home correctly.

I have also reported previously, that the market for higher priced homes, is more challenging than the market for homes priced more moderately. The reason for that, among other things, is becuase of the first time home buyer tax credit.

To drive home the point I have been making, I started with homes for sale in Lower Makefield Township, in Bucks County. I compiled a list of all homes for sale in Lower Makefield, priced from 600,000 to whatever the most expensive listings were. As you can see from the chart that follows, there are 29 homes for sale, priced between 600,000 & 1,495,000.

I charted the total number of days on the market for each home.

I eliminated any new construction, since they tend to skew the statistics because of how long new construction homes remain on the market.

107 Shelly Lane	$619,000	75
1505 Pownal	$619,900	104
837 Sandy Run	$625,000	11
1340 Jacob Dr.	$629,000	138
4 Houston	$639,900	208
704 Long Acre	$645,000	129
1023 Victory	$649,500	5
361 Twig	$649,900	271
2200 Yardley Rd.	$649,900	29
2117 Stackhouse	$649,900	751
1277 Clearview	$649,900	601
919 Hunt Drive	$658,000	263
621 Grindan	$669,000	19
1353 Heller	$679,500	22
660 Grindan	$694,900	18
1485 Brookfield	$695,000	131
1440 Windrow	$699,900	285
1241 Briddle Ests.	$715,000	477
1083 S. Kimbles	$717,000	247
778 Mill Road	$729,900	268
1743 Jockey’s Way	$759,900	152
1561 Quarry Rd.	$799,000	117
1623 Makefield Rd	$835,000	225
2014 Silverwood	$849,900	832
1644 Powderhorn	$899,900	240
2061 Silverwood	$974,900	638
175 Mt. Eyre Rd	$1,185,000	68
1995 Timber Lakes	$1,295,000	24
1509 Quarry Rd.	$1,495,000	299

What I found was, that the average days on the market of the 29 homes for sale, was 230! That is a sobering statistic, especially for a seller who is motivated, and really wants to move. If I eliminate the 3 houses that have been on the market the longest, the average days on the market, for houses priced above 600,000 in Lower Makefield Township, is 171. Still, quite a long time.

I can examine similar stats from other communities, like Upper Makefield Township and Newtown Township, but the results will be somewhat similar.

There have been a total of 46 homes that have closed, in the past 12 months, priced above 600,000 in Lower Makefield Township. This represents more than 8 months of inventory, based on the current rate of absorption.

So, the critical message to sellers, is to be as realistic as possible, in pricing your home. There are buyers, but as you can see, there are many homes that have been on the market for a long time. Price your house correctly, make sure it shows as well as possible, market it properly, and it will sell in a reasonable time frame.

I always welcome your thoughts and comments.

Yardley, Newtown, Bucks County sellers, for goodness sake, let the agents in!

My most recent video rant, about sellers who make it difficult to show their home. 

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.

What are the top 10 home repair tips, for home owners in Yardley, Newtown & Bucks County.

I write this post from my home in Yardley, Pa,  Bucks County, waiting for the arrival of the third major snow storm of the season.  I came across this wonderful video, that details the top ten home repair tips, for home owners in Yardley, Newtown and all over Bucks County.  Hope that you find this video helpful.

Snow day in Yardley, Bucks County

If you live anywhere near Bucks County, Pa. then you know that today was a snow day.  All over the East Coast, travel, and plans were disrupted, with anywhere from about a foot to 2 feet of snow.  Not very conducive to real estate, but it did create a beautiful, quiet, and serene setting from Yardley, to Newtown, and all over Bucks County.  Just a couple of quick, snow day pictures.

Home buyers & sellers 2009; Yardley, Newtown, Bucks County, Pa.

The National Association of Realtors (NAR) recently released their report of home buyers and sellers, for 2009.  Thought it would be interesting, to review some of the highlights of the report, with you.

Characteristics of Home Buyers

• 47 percent of recent home buyers were first time home- buyers.
• The typical first-time home buyer was 30 years old, while the typical repeat buyer was 48.
• The 2008 median household income of buyers was $71,300.  The median income was $61,600 among first time buyers and $88,100 among repeat buyers.
• Twenty-One percent of recent home buyers were single females and 10 percent were single males.
• For one-thhird of recent hohme buyers, the primary reason for the recent home purchase was a desire to own a home.

Characteristics of Homes Purchased

• New home purchases were at the lowes level in eight years-down to 18% of all recent home purchases.
• The typical home purchased was 1800 sq. ft and was built in 1991
• Seventy-eight percent of home buyers purchased a detached single-family home.
• The median price of home purchased was $210,000 in the Northeast, $158,000 in the Midwest, $175,000 in the South, and $240,000 in the West.
• When considering the purchase of a home, commuting coosts were considered very or somewhat important, by 78 percent of buyers.

The Home Search Process

• For more than one-third of home buyers, the first step in the home buying process was looking online for properties.
• 94% of home buyers used the internet to search for homes.
• Real Estate agents were viewed as a very useful information source by 81% of buyers who used an agent while searching for a home.
• The typical home buyer searched for 12 weeks and viewed 12 homes.

Home Buying and Real Estate Professionals

• Seventy-seven percent of buyers purchased their home through a real estate agent or broker.
• Ten percent of buyers purchased a home in foreclosure, up from 3% in 2008.
• Forty-Four percent of buyers found their agent through a referral from a friend or family member.

Financing the Home Purchase

• Ninety-two percent of home buyers financed their home purchase.
• The percentage of first-time buyers who financed 100 percent of the purchase price with a mortgage, dropped to 15% from 23% last year.
• Nearly half of home buyers reprted they have madae some sacrifices such as reducing spending on luxury items, entertainment or clothing.
• One-fifth of first-time home buyers reported their mortgage application and approval process was somewhat more difficult than they expected, and one-in-ten reported it was much more difficult than expected.

Home Sellers and Their Selling Experience

• About half of home sellers traded up to a larger size and higher priced home and slightly more than one-fifth traded down to a smaller and less expensive home.
• Eighty-five percent of sellers were assisted by a real estate agent when selling their home.
• Recent sellers typically sold their home for 95 percent of the asking price and 60 percent reported they reduced the asking price at least once.
• Forty-two percent of sellers offererd incentives to attract buyers, most often assistance with home warranty policies and closing costs.

Home Selling and Real Estate Professionals.

• Forty percent of sellers who used a real estate professional found their agents through a referral by friends or family, and 26 percent used the agent they previously worked with.
• Ninety percent of sellers reported that their home was listed or advertised on the internet.
• Among recent sellers who used an agent, 81 percent reported they would definitely or probably use that real estate agent again or would recommend that person to others.

For Sale By Owner (FSBO) Sellers.

• The share of home sellers who sold their home without the assistance of a real estate agent was 11 percent.  About half of them, 45 percent, knew the buyer prior to home purchase.
• The primary reason that sellers choose to sell their home without the assistance of a real estate agent to a buyer they did not know was that they did not want to pay a fee.
• Nearly one-third of FSBO sellers took no action to market their home, and 57 percent did not offer any incentives to attract buyers.
• Eighteen percent of FSBO sellers reported preparing or fixing upu the home for sale was their most difficult task, while 15 percent reported getting thte price right and and additional 15 percent reported understanding and performing paperwokr was the hardes part of selling their home.

So how does all of this compare with our market in Yardley, Newtown and throughout Bucks County?  A couple of quick observations.  Our prices tend to be higher than the National median, for sure.   In most of the areas I cover, our median income is higher than the national average.  It is certainly true that there were more first-time home buyers in 2009, than in previous years.  I expect that trend to continue, for at least as long as the first-time home buyer tax credit exists.  Also, for most of the markets that I cover, the number of foreclosures and distressed property transactions is higher than I ever remember, it is not as high as the national averages. 

Hope you found this information helpful.  Wonder what we will be saying about 2010, this time next year.  Please feel free to share your thoughts.

Real Estate Update From Yardley, Pa., Bucks County-My recent experience with Multiple offers!

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My video recap of a recent experience with a listing where we had 2 offers within  one week of listing the property.  How and why? what can you do to sell you house faster?

Writing from Yardley, Bucks County; 5 critical cell phone tools.

Pretty much everyone has a cell phone these days. However, I received a note today, from a client of mine, with information about 5 things a cell phone can do, that some of you may find really helpful. Most of these, I was not aware of. Here goes:  

1. Emergency

According to the information I received, the Emergency Number worldwide, for cell phones is 112. If you find yourself out of coverage and there is an emergency, dial 112 and the cell phone will search any existing network to establish the emergency number for you. This number can even be dialed if the phone is locked.

2. If you locked your keys in the car?

If you find that you have locked the keys in your car, and you have a spare set at home, call someone at home on their cell phone, from your cell phone. Hold your cell phone about a foot from your car door and have the person at your home, press the unlock button, holding near their cell phone. Your car will unlock. Much easier than having someone drive keys to you! You could be hundreds, even thousands of miles away from someone who has a spare set of keys, yet if you can reach them, you can unlock your car door.

3. Hidden Battery Power

Imagine that your cell battery is really low. (Happens to me all the time, which is why I have a car charger, and basically charge my I phone, wherever I am) To activate this feature, press the keys *3370#. Your cell phone will restart with the reserve and the phone will show a 50% increase in battery. This reserve will get charged, the next time you charge your cell phone.

4. How to disable a stolen cell phone.

First, you need to know the phone’s serial number. To find that out, if you don’t have a record of it, key in the following on the phone: *#06#. You will see the 15 digit code. Save this number. Should your phone get stolen or lost, you can phone your service provider and give them this code. They will be able to block your phone, so that even if someone takes the SIM card and installs it in a new phone, the phone will be useless. I guess if everyone did that right away, there would be no point in stealing cell phones.

5. Free Directory Service.

Cell phone companies generally charge between $1.00 to 1$1.75 for 411 information. If you need to find a number, instead of using 411, as an option, simply dial (800)FREE411, or 800-373-3411. Program this into your phone, and never pay for information assistance from the cell phone company.

As I mentioned, I was not aware of any of this, so I hope that you find this helpful. If so, pass it along to family and friends.

Back to real estate, with my next post.

Christmas in Yardley, Newtown & Bucks County.

Writing this post on Christmas eve, I thought I would take a break from talking about the real estate market, and focus on the holiday season in Yardley, Newtown, and all over Bucks County, Pa.

As you can see from the few photos that I have posted, with snow on the ground, Bucks County presents a beautiful picture, at this time of the year.

To all who celebrate Christmas, I wanted to say, that I hope you enjoy a very merry Christmas, with your loved ones. I hope that the holiday season finds you and your families, in good health, and that you enjoy the spirit of the season, together.

One of my favorite columnists, Nicholas D. Kristoff , who writes in the New York Times, had a wonderful list in his column today, of relatively unknown charaties, that do amazing work, all over the world. I realize that there are so many, worthwhile charaties, and that it is always difficult to single out a few, but I thought that the work that these particular charaties do, often in relative obscurity, was worth mentioning, espcically this time of the year.

So here is the list:

Acumen Fund - They bring a venture capital sensibility to aid work by investing money in for profit businesses that treat the poor as customers. This reflects a trend of using business mechanisms to fight poverty.

Afghan Institue of Learning - This is an aid group run by Afghan women. They now serve 350,000 Afghan women and children annually. They focus on education and self reliance.

BRAC – This is an antipoverty organization in Bangladesh, which is branching out to Afghanistan and Africa. It emphasizes organizing village women and promoting education, health and microfinance.

Developments in Literacy - This group builds modern schools in Pakistan, particularly for girls.

Deworm the World - This group takes on a problem that we, in America don’t even think about. Most kids in poor countries, have intestinal worms. The sad part of this issue is that it takes one pill a year, which costs 50 cents, to protect a child!

 SOIL - This groups aim is to improve sanitation and public health in Haiti. It is run by two American women.

Sustainable Health Ventures - This is a group whose mission is to help girls in poor countries, with sanitary products and medicine.

The Worldwide Fistula fund - This group is dedicated to correcting a chlidbirth injury that basically subjects a women to a life of pain and misery. A $450.00 surgicalk repair generally solves the problem, but for most of the developing world, that is a sum that is way beyond the reach of virtually everyone.

So, there you have it. Lesser known charaties that are tackling global poverty in innovative ways. Giving, is a wonderful way to recognize the spiritual nature of this holiday season.

Merry Christmas, to all who celebrate.