I have worked with buyers, who erroneously feel as though the real estate market in Yardley is similar to the real estate market in Arizona. Those buyers often think that they can take an asking
price and immediately knock off 15% because in their mind, sellers are desperate.

I have represented sellers who are on the receiving end of these low ball offers.

So, the question for today is, if you are selling your house in Yardley and you get what you perceive to be a low ball offer, what should you do about it?

1. Leave your emotions at the door! I can’t emphasize this enough. I have been involved with successful transactions, where the initial offer was literally tens of thousands of dollars lower than what we ended up agreeing to. Part of my job as an agent representing a seller, is to try and take the emotion out of the process. An offer means that someone wants to buy your house. Considering the competition, that is a good thing.

2. Counter! Again, as I mentioned before, I have seen Bucks County real estate transactions go to closing, where the initial offer was thousands of dollars less than what was ultimately accepted. Without a counter offer, you never really know what the buyer is willing to do. There are buyers in today’s real estate climate who feel as though they are expected to make very low offers. As long as buyers and sellers are communicating, and getting closer to an agreed-upon price, progress is being made. Don’t close the door, by refusing to counter.

3. Consider more than just the price. Make sure, when evaluating an offer, that you consider the terms. Is the closing date good for you? Is the buyer bringing a lot of cash to the transaction, so that the appraisal may be less of a factor? Although it doesn’t always seem so, there is a lot more to an offer than just the price.

4. Evaluate comps. As a seller, if you get what you consider to be a low ball offer, use the offer as an opportunity to re-evaluate what we refer to as comps. Basically that means taking a look at other houses in your neighborhood which may compare with the house you are selling to try and make sure that your asking price is realistic.

5. Don’t be desperate. Sometimes, buyers take signs like an empty house as an indication of desperation. If your house is empty, you may want to consider staging, or leaving some furniture and clothes, so the house doesn’t look empty.

If you have reviewed the comps with your agent, and you are confident that your price is realistic, given the market, then you should make your best effort at negotiating the low offer, but if it isn’t realistic, be prepared to move on.

I think everyone would agree that the worst investing advice in the world would be to buy high, sell low!  To me, that is the very definition of losing money on an investment.  Not too smart, if you can help it, right?

So, my question for those considering buying real estate in Yardley, or Newtown, or anywhere in Bucks County,  is why would you wait for the housing market to improve, before buying a house?  Seriously, I understand that there is a lot of uncertainty out there right now.  Job security is still questionable, unemployment is too high, and there is general fear about getting approved for a mortgage.  it can be scary.  But, here’s the thing.  In my opinion, letting fear dictate your financial stragegy for the future is a guaranteed way to pay too much for a house in years to come.

Put fear aside for just a moment, and consider:

• Interest rates are at or close to all time historic lows.
• Prices for homes have plunged to the lowest levels we have seen in a generation.
• There are distressed property sales.
• Rents are rising, and in most cases, rental inventories are shrinking, which limits rental options

Shouldn’t you, rather than a landlord, be the one who benefits from owning a home?  In my opinion, right now is the “buy low/sell high cycle!  I love helping renters and first time home buyers explore their purchasing power.  People are often surprised at just how qualified they are for home ownership.

If you are curious, simply email me at Marty@MartinMillner.com or call me at 215-519-1399, and I would be happy to discuss your home buying options with you.

Don’t know where the year went.

For me, it was a productive and successful real estate year.  For that,  I am totally grateful and thankful for the buyers and sellers who trusted me to handle their real estate transactions, and I am also extremely thankful and appreciative of the colleagues, friends and clients who referred real estate business to me.  I work really hard at what I do, and feel truly blessed to have so many people allow me to be a part of their lives during the real estate process, and beyond.

My personal outlook for real estate in the Yardley and Newtown area, and for all of Bucks County, is cautiously optimistic.  I have written previously about the fact that we have a lot less distressed property sales in Yardley and Newtown,  and in most of Bucks County, than in many other parts of the country.  There is clear evidence right now that prices for non-distressed homes are holding very steady.

While I don’t envision a sudden shift in the market, I do think that we will see, in 2012, in Bucks County, a market that becomes more balanced than it has been.  I think that sellers who are realistic about pricing will not have difficulty selling in 2012.  I think that there will continue to be excellent value in the market for buyers of homes in Yardley and Newtown in 2012, but I also think that buyers need to be realistic about our market, as well.  What I mean by that is that I know that there are buyers who feel as though they can make virtually any offer they want, and often expect that sellers will take anything.  Remember, the average discount from original asking price in Bucks County is about 8%.

More sellers are becoming more realistic about the market, and I think that will continue in 2012.  If sellers price homes realistically, given the current market conditions, then it will take a much shorter period of time to sell, and it will reduce opportunities for low ball offers, as well.

I have been able to enjoy a bit of down time over the holidays, which I always appreciate.  I have gotten in some basketball, which I do all year long.  We have seen a number of movies, including, “The Girl With the Dragon Tattoo,”  “We Bought a Zoo,” and “Young Adult.”  I loved “The Girl With the Dragon Tattoo,” although I thought the books were better because they went deeper than is possible with a movie.  We also totally loved, “We Bought a Zoo.”

Also had a chance to get into New York to see a show and have dinner.  We saw Priscilla, Queen of the Desert, which was wonderful.  Amazing costumes, great acting and music.  I love being so close to both Philadelphia and New York.  It is one of the great aspects of living in Yardley.

Finally, I wanted to wish you all a very happy, healthy and prosperous new year!  Enjoy New Year’s Eve celebrations, but stay safe, and I will see you in 2012!

Hard to believe that we are just a week away from Christmas!

From a Yardley real estate perspective, we are now 11 months into data for 2011. Let’s see where we are, both with Yardley real estate and Bucks County real estate.

Bucks County real estate

Units Sold: Looking at numbers for all of Bucks County, the number of units sold this year is about 4% lower than a year ago at this time. For those who suggest that no real estate sells in Bucks County, although the number of houses sold is a bit lower, there have been 4,052 homes that have closed through November this year!

Pricing: The average price of a home for sale in Bucks County is down by 5.5% from last year at the same time.

Pending Sales: This is the best forward indicator of real estate activity, and the number of pending sales has trended up for several months.

Inventory: This is also an extremely important metric, when considering Bucks County real estate market conditions. The number of houses for sale in Bucks County is 7% less this month than last month, and more than 11% lower than it was at the same time last year! This still represents more than 11 months of inventory in Bucks County. We consider a market to be balanced when there is about a six month inventory, so you can see that factors are still favoring buyers. It is important to note, that the average days on market has also increased this year, from 88 to 101.

Observations for Bucks County real estate market

My observation from all of these statistics is that the market, while still favoring buyers, has stabilized a bit in Bucks County. I posted an article the other day comparing distressed and non-distressed real estate sales. In the article, I pointed out that both locally and nationally, prices of non-distressed properties appear to have stabilized. In looking at Bucks County real estate, it is important to note that we have far fewer distressed property sales than in many other parts of the country. Houses can and will sell, if they are priced correctly, marketed properly, and if appropriate steps are taken to ensure that they show as well as possible.

Yardley Real Estate Information

As I have pointed out many times in the past, real estate markets are very local, often varying from neighborhood to neighborhood. Let’s look at what is happening in the Yardley and Lower Makefield Township real estate market.

Inventory

• Inventory of homes Nov 2011 204
• Inventory of homes Oct 2011 226
• Inventory of homes Nov 2010 194

Although inventory is a bit less this month, compared with last month, it is higher by almost 10% from the same time last year. This is a bit of a contrast to the County as a whole.

Pricing

• Average price of a home for sale Nov 2011 489,000
• Average price of a home for sale Nov 2010 499,000

Asking price of a house for sale in Yardley/Lower Makefield Township is about 2% lower this year.

Units sold

• 261 homes sold through November this year
• 291 homes sold at the same time last year

It is also interesting to note that homes selling this year sold at an average of 92% of the list price, while they sold at an average of 93% of list price last year. Please note that when comparing the sold price to list price, we use the original asking price, where the price is reduced.

There is currently about a nine month inventory of homes for sale in Yardley. This is actually a bit better than for all of Bucks County.

Observations

There is no question that, looking at all of this information, it is still a buyers market. However, whether you are a buyer, seller, or just curious about real estate in Bucks County, or Yardley, houses are selling. Interest rates are at historic lows. Despite public perception, buyers are getting mortgages, and real estate is selling. If you are a potential seller, it is critical that you be realistic about pricing. It has never been more important to make sure that your house shows as well as it possibly can, and that it is marketed properly and thoroughly. I have a real sense that, especially for non-distressed homes, the market is a bit more stable right now, than it has been in quite a while.

If you think wiping down counters and fluffing a few pillows in advance of the guest onslaught will land you on Santa’s “nice” list this holiday season, maybe you should check that to-do list twice. You

Scrub your entryway. Wipe down your front door, give the doormat a good shake, and make sure dust and dirt haven’t collected on floors and furniture legs. These are the first things guests will see when they arrive, so keeping them clean will guarantee a good first impression.

Focus on the kitchen. People tend to gather around the food during the holidays, so make sure your kitchen looks and smells nice. Don’t forget to dust the light fixtures and flush sink drains with boiling water.

Whatever you do, don’t neglect the loo. Don’t just wipe surfaces; break out the stiff-bristled brush and scouring powder to really scrub things clean.

Sniff out bad smells. If you clean your home and something still doesn’t smell quite right, brew some coffee. The aroma will cover it up.

Give your garbage disposal some love, considering how much it will “consume” this season. To cut down on odors, chop up a whole lemon — rind and all — and let the disposal gobble it up. Throw in ice cubes to sharpen the blades.

Make sure you can see the guests coming. Keep windows clean and streak-free on the cheap with an easy mixture of vinegar and water in a spray bottle. Wipe down windows with a reusable microfiber cloth.

With all your holiday cooking, stove tops and ovens are bound to get dirty. Baking soda and water make a simple scouring solution that can scrub off that baked-on gunk.

What are your tips for keeping your Yardley home guest-ready during the holiday season? Leave your comments below!

From a Bucks County perspective, why is this article so interesting?

There are always articles written that talk about how bad the real estate market is.  I have written pretty extensively about the real estate market in and around Yardley and Newtown, and all over Bucks County.  I have pointed out on numerous occasions, that our market is nowhere near as dire, as in other parts of the country, like Arizona, Florida, etc.

This Journal article is the first article that I have seen that makes a distinction between distressed sales, and non-distressed sales.  I think this could be a critically important distinction, because, as the article points out, according to CoreLogic, an important emerging trend is that home prices are actually stabilizing after excluding distressed sales.  If you are not familiar with the term, “distressed sale”, it essentially refers to bank owned properties, and/or short sales, etc.

It is clear, according to the statistics, that prices of non-distressed properties are actually stabilizing, even as the prices of distressed properties are still falling.

The reason this becomes so important to the real estate market in Bucks County, is because for Bucks County real estate, the percentage of distressed property sales, is very significantly lower than the national average.  In fact, for all of Bucks County, the percentage of distressed property sales is about 13% or so, while the national percentage is 28 to 30%.  I would actually suggest that in the Yardley, Newtown, Washington Crossing real estate market, that percentage is even lower.

In fact, many people are really surprised to learn that for the entire real estate market in Bucks County, following the height of the market, which was in 2007, prices fell by 6.7% in 2008, they dropped by 6.8% in 2009 and believe it or not, they actually went up by 4.3% in 2010.  Those statistics are based on the change in the average sold price, each year.

So, if you live in or are interested in real estate in Bucks County, spread the word!

 I am a dog lover. My family has virtually always had dogs. Over the years, we have had Golden Retrievers, Burmese Mountain dogs, and we currently own an American Eskimo, Quincy. That is Quincy in the picture.

I subscribe to a magazine called Your Dog, which is a wonderful newsletter published by the Cummings School of Veterinary Medicine at Tufts University. The current issue had a very helpful article, called “10 Steps to Tame the Chaos of a Move.” Considering what I do, this could not be more appropriate to share with people.

So, here are the ten steps to tame the chaos of moving with your pet:

1. Prepare for home invaders. The article suggests asking your realtor, or friends, to actually do a test run of showings. Put your dog in a place that you feel would be the best for showings, leave the house, and have your realtor or a friend actually come to the house as though they were a prospective buyer. If the dog was fine, you are probably good to go. If not, try and develop a Plan B. Perhaps a dog walker for showings, or something of that sort.

2. Secure your dog in a safe place. If workers are coming to the house, put your dog in a safe, secure place, while the work is being done. Exercise him/her well, before the workers arrive, and consider leaving a radio on.

3. Condition your dog to the presence of moving boxes. The article suggests conditioning your dog to the fact that good things happen when boxes are around. For instance, if UPS delivers a box, offer the dog treats. You can actually move boxes around, along with providing treats, to get your dog used to being around moving boxes.

4. Take advantage of the dog’s crate. If used properly, crates provide a sanctuary for dogs. Don’t forget to take advantage of this when moving.

5. Introduce your dog to his new home gradually. This works if you are moving locally, and have access to the house, before actually moving in.

6. Introduce your dog to new family members. It is helpful to introduce your pet to new family members, human or otherwise, so that they are allowed to develop a positive relationship before the move, if at all possible.

7. Let your dog play the packing game with you. Although packing for a move is stressful for you, it can also be stressful for your dog. You can make a game of packing by tossing a toy for him/her to fetch while you are packing, and using treats to reward the dog. It will create a more positive environment for your dog.

8. Practice car trips. This definitely makes sense, and it is something we did not do a very good job of with Quincy. About the only time Quincy gets in the car is for a trip to the vet. As a result, he doesn’t like getting in the car at all! Get the dog used to the car before you move.

9. Plan your trip. If you are doing a fairly long distance move, make sure you plan for regular stops, and keep your driving times reasonable, so you can take the dog on walks each evening.

10. Consider medication. According to the article, if your dog is particularly stressed and reacts badly to change, it is perfectly acceptable to speak with your vet about medication.

If you would like a copy of the actual article, please contact me by phone or email, and I will email you a copy of the full article.

Spring market in Yardley Real Estate

As we wind our way through February, and with temperatures supposed to reach the mid 60′s by the end of the week, it is time to think about the spring market in Yardley Real Estate. 

This past Sunday, one of my favorite real estate writers, Alan Heavens, wrote a column in the Philadelphia Inquirer, titled, “What is the right price for a house?”

The column actually points out how important proper pricing is to get the market moving.  Alan mentions a prospective buyer, who has been looking for a long time, and observed how few homes he thought, actually fell into the category of being properly priced.  According to a recent Coldwell Banker survey of online consumers, the most important criteria for buyers, is a, “move-in ready” home.  If a home is not move in ready, then sellers must price to reflect deficincies. 

Within our Bucks County, real estate market, there is a feeling within the real estate community, that there is a shortage of well priced, attractive homes.  Notice that I said well priced, attractive homes.  Unfortunately, there are still lots of homes on the market, but many of them have been on the market for a long time, in many cases for month and months.  Many of these homes are still priced today, as they were 6 months ago.  I believe that the average days on the market is extremely skewed, because there are homes that sell within weeks of going on the market.  Those situations are off-set by the many homes that stay on the market for 6 months to 2 years.

It really is all about pricing correctly, to reflect current, and I mean current, market conditions.  Unlike the days of the rapidly appreciating real estate market, it is entirely possible,  that a seller will get less for their house than their neighbor received when they sold a few months earlier. 

As a seller, for your house to sell given the current market conditions, it is absolutely imperative that it be priced correctly.  For today’s market enviornment, that means that buyers must perceive it to be a bargain, based on other homes on the market.  It has to stand out. 

As the spring market approaches, there will be more homes coming on the market.  As always, sellers who understand pricing reality, will sell their homes relatively quickly, and will be able to move forward with their real estate goals and objectives.  Unrealistic sellers will encounter long delays, and much frustration with the market dynamics. 

So, the question is, what is the right price for a home in the Yardley and Newtown real estate market?  It is the price that will generate lots of activity, early in the sale process, and a realtively quick offer.  Remember, the chances of getting close to the asking price, is really inversely proportional to how long the house is on the market.  The longer its on the market, the larger the discount the buyer will expect.

Curious about pricing in your neighborhood?  As to have my market snapshot emailed to you.  It will show you all market activity within about a 5 mile radius of your home, including active listings, pending sales, and homes that have closed.  It includes days on market, and will show you discounts from the asking price.