Marty Millner

Archive for the 'Selling Real Estate' Category

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.

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?

Brokers Open house in Yardley, Pa., Bucks County

Whenever I put a house on the market, one of the first things we schedule, is an open house for realtors, called a brokers open house.  I created a short video, showing what goes on, at a typical brokers open house.

Realtors attend brokers open houses, so that they are familiar with what is on the market.  Often they are trying to determine whether a particular house will suit the needs of their client. 

My brokers open houses are generally catered, but will always include food.  We invite realtors to join me for lunch, while previewing the house.  This strategy ensures a strong turnout.  Realtors love to eat, and I find that the better the food, the more people come.  The interaction with agents, gives me a good opportunity to get a sense from other realtors, about their reaction to the price, and also to get feedback about any suggestions for improving the way the house shows.  I can often get a very strong indication, just from the brokers open house, whether or not it will take a long time for the house to sell. 

The video was taken at a brokers open house at 225 Arborlea Ave, in Lower Makefield Township.  We had almost 50 agents join us, which is a great response, and actually had 4 agents bring buyers with them! 

Overall,  I got just what I was hoping for, from this brokers open house. 

Thoughts and comments are welcome.

So you’re thinking of selling your house in Yardley, or Newtown, Bucks County.

I just uploaded a new video, discussing the best time to put your house on the market, given current market conditions.

A lot of people are not aware, that the current tax credit for both first time homebuyers, and those buyers who already own a house, but are looking to move, requires that a contract be in place by April 30th, and that closing occur on or before June 30, 2010.  What effect will that have on sellers this year?

Should the seller pay to have house inspected, in Yardley & Newtown, Bucks County?

Should seller pay to inspect before house is on the market?

I realize that this may strike some real estate sellers as odd, but when I meet with clients who are considering selling their house, I often suggest that they pay for a home inspection, as part of the process of selling?

Why would a seller decide to do that?  Isn’t the home inspection part of what the buyer pays for?

The answer is, yes, the buyer will most likely hire their own inspector, and will make their offer contingent on the outcome of that inspection.

The normal course of a real estate transaction, here in Yardley, Newtown and all over Bucks County, is that after the contract is signed, the buyer conducts a home inspection.  The home inspection includes a complete and thorough evaluation of all systems and mechanical components of the house, including the roof, HVAC system, plumbing, etc. 

Unfortunately, it is very common, that following the home inspection, there is another round of negotiations, covering who will pay for what repairs.  In fact, the most likely cause of a real estate transaction not getting to closing, is the inability of the buyer and seller to negotiate the outcome of the inspection.

That gets me to my original point, which is that I often suggest to the seller, that they have a home inspection completed prior to putting their house on the market.

Here is the point.  By doing their own inspection, the seller can make a calm decision as to what, if anything, they are going to fix.  They are able to disclose those issues that come up that they are not going to fix.  By doing that up front, they are often able to remove those elements from further negotiation, after a contract is presented.  This can often save a great deal of stress, and in many cases, enables the seller to have a much smoother path to closing. 

Although asking the seller to have a home inspection completed, prior to presenting the house to the market, may appear a bit counterintuitive, it is often a very succesful strategy, that gives the seller a much better chance to control the inspection process.

I would love to hear thoughts or comments.

Does it make sense to sell or buy first, in Yardley, Newtown, Upper Makefield, Lower Makefield, Bucks County?

Just spoke with a client of mine, who purchased a town house several years ago.   They would like to take advantage of the market right now, to buy a larger, single family home.  They realize that interest rates are incredibly low, and there is a lot of inventory, since it is such a buyer’s market.  So, their question is, do we buy first or sell first?

This is a very common question, so I created this video blog, addressing the various options.

Check it out, and let me know what you think.

National Real Estate Update-Nationwide housing affordability up!

Nationwide housing affordability, bolstered by affordable interest rates and low house prices, hovered for the third consecutive quarter near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.

The HOI showed that 70.1 percent of all new and existing homes sold in the third quarter of 2009 were affordable to families earning the national median income of $64,000, down slightly from a near-record 72.3 percent during the previous quarter and up from 56.1 percent during the third quarter of 2008.

 ”At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices.”

It is a great time locally, to take advantage of these programs.  Please email or call me if you have any questions or would like to take advantage of the federal tax credit or low interest rates.

Is inventory of houses for sale in Newtown, heading up or down?

As you probably know by now, I do keep track of statistics in the market, on a regular basis.

A couple of interesing developments, in the housing market, in Newtown, Upper Makefield Township, and everywhere, in 18940 zip code.

On the table below, I have charted inventory levels for the entire 18940 zip code, for single family houses, agains the days on the market.  What the chart shows, quite clearly, is that inventory is falling, but houses are staying on the market longer.  When inventory falls, generally you would expect to see homes selling at a faster pace. 

I believe that what is happening, is that there are a great deal of houses on the market, that are overpriced, given the current market conditions.  When inventory levels fall, there is less competition.  Less competition, should mean a better opportunity for sellers to get their home sold! 

Look at inventory, compared with days on the market for 18940

If you are currently selling, take a careful look at your price point, and how long your house has been exposed to the market.  Ask yourself whether you are happy with the activity level?  It may be a critical time to take a look at pricing, given where the market is.

If you have any questions, please feel free to contact me.

6 Reasons to list your house now, in Yardley, Newtown, Lower Makefield Township & Upper Makefield Township, Bucks County.

I want to sell my house, but should I put it on the market this time of the year?   Aren’t the holidays, a bad time of year to sell?