Gary Mercer Group | West Chester , Delaware PA Area - Real Estate Agents

1st Quarter Real Estate Market Recap West Chester, PA

2011-04-26T07:34:00.000-07:00

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How to Successfully Buy and Sell in Today’s Housing Market

The housing market has been on quite a ride since 2008. The first quarter of 2011 has shown an uneven but notable improvement. Pending home sales have posted an overall gain of 24% and demonstrate the market is recovering on it's own. High inventory, declining prices, and record low interest rates make the market challenging for sellers and lucrative for buyers. The good news is that the post-bubble fears have evaporated and buyers are venturing out, but it takes more market savvy and sense than ever to skillfully and successfully buy or sell in this rebuilding marketplace.

Sellers

The name of the game for sellers is activity. You need to generate traffic and buzz if you are going to generate offers. The three main things to pay attention to in this market are price, staging, and marketing. When so many homes are for sale, you have to make your home stand out in the crowd.

Pricing. The first way that potential buyers will find your house is by doing a search for homes in their price range. They will compare the statistics, location, and appeal of your home based on the bang they get for their dollar. Be sure to research homes that have sold recently and others that are for sale to compare square footage, room sizes, neighborhood, and perks and amenities to see how you compare. This is a price-driven market, so presenting a great value to home shoppers is the first way to get their attention. Sacrificing a few thousand dollars up front may cut your market time in half, which is worth a lot.

Also, if people are looking for a house from $200K to $250K, they won’t find your listing for $199,900. Sometimes you might want to consider rounding the price up to a nice round number that may get your home included in more searches. In this example, a $200K listing will be found by the people looking for $150K to $200K as well as the ones looking for $200K and above.

In any case, make very sure that you are priced right. Basing your price on the realities of today’s competitive market is not always easy, but it is the most important first step toward a successful sale.

Marketing. Only a real estate professional has access to all of the inside channels for marketing a home – and remember, almost all of your competition has enlisted the services of a professional. Making sure your home shows up in all of the databases that people search is vital, and having plenty of professional-quality photos in the listing is key as well. You will also want to have a nice fact sheet with photos, hold open houses, and get the word out to as many real estate agents and home buyers as possible. It takes more than a sign in the yard to sell a home, so make sure you don’t forget about the marketing piece.

Staging. You’ve built a nice fire with the right pricing and strategic marketing, and now the pot is starting to boil. People are coming to look at your house. Their impression of your home is the make-or-break part of their decision-making process. Your real estate agent can show you how to make the house ready for home shoppers.

Less is more, when it comes to staging. Less furniture, less personal memorabilia, less of a “lived-in” look will make the home feel warm and welcoming. Getting them emotionally hooked is a big step in getting an offer.

You should also consider doing some updates and cosmetic improvements that will make your home sparkle, both inside and out. Most people aren’t looking for a home improvement project. Get rid of the wallpaper and the purple paint in the kids’ bedroom and replace it with a warm and neutral paint. A carpet allowance is nice so people can pick out their own new carpeting, but a nice new neutral carpet can be very eye-catching and appealing to people too.

Fix the doors and knobs and screens, and do a little landscaping or painting outside. Depending on the price bracket your home is in, you may even want to redo the bathroom, get new appliances, or even put on a new roof if people are likely to reject the home because of those outdated features. Give people something to fall in love with about your home that will give you a competitive edge.

Buyers

It is still a buyer’s market in real estate these days. There is a huge inventory of homes for sale, lots of bargains and distressed properties to consider, and all-time low interest rates. But, even though the deck is stacked in your favor if you’re a buyer, you still need to take a systematic approach to this major investment. For buyers, success in this market depends on credit, proper budgeting, and rational expectations.

Credit. There may be a lot of homes to choose from, and interest rates may be low; but lending is not as free and easy as it was a few years ago. Banks are shy of risk and are looking for solid buyers with a history of good credit. Get pre-qualified before you shop if you want sellers to take your offer seriously. Pay your bills on time and fix any blemishes on your credit rating before you fall in love with the house of your dreams.

Stay rational. Better yet, don’t let emotions control your home purchase at all. If you let yourself become emotionally attached to a home, you are more likely to over-spend and make a poor financial choice for your family. Remain logical and realistic, and base your purchase on sound economics.

Budgeting. Set a price range based on what you can afford, and remember to factor in your property taxes, insurance, utilities, commute time and expense, and maintenance of the new home. You should become very familiar with your household budget and track all of your expenses for the past several months before you set a budget for a new home. Your household budget and your home-buying budget have to work together.

Try to put together a good down payment, and over-estimate the probable interest rate and property taxes you will have to pay in order to leave yourself a buffer of safety. Then, based on the amount of the loan you will need, you can “reverse engineer” the comfortable price range of your new affordable home.

Whether you are buying or selling, today’s fluid market has plenty of perks and potholes, so plan ahead, make smart decisions, and employ the help of a real estate professional.

Make a Practical Choice, Not an Emotional One

2011-04-08T11:59:00.000-07:00

Buying a home is the the biggest investment most of us will ever make, and it should be based on an informed and rational decision. With so many available possibilities these days, it just doesn’t make sense to rush into something with your eyes wide shut. Remain detached and logical. Forget the “ooohs” and “ahhhs” and and make a list of the “pros” and “cons” for every house you want to consider. Sometimes those fabulous “got to have it” features don’t stack up when you take your time to consider the drawbacks. Features are great, but don’t forget about your budget, the neighborhood, the commute, the schools, the crime rate…well, let’s go through the whole list together.

Be Realistic and Objective

Keep your mind open and your head cool. Don’t start salivating over that great pool you’ve been waiting for, and don’t rule out the well-built, but boring traditional home right away. Look at the age, the builder, the roof, quality of construction, room sizes, as well as the floor plan, taxes, and the street on which it’s located. Tell yourself ahead of time that you are going to reserve judgment and consider each house on all of its merits and demerits alike. It’s very easy to overlook vitally important factors when your head is clouded by a couple of amazing features. Take a step back and get a good look at the big picture. Then put all of the great features into context and see if they still seem so perfect.

Don’t Overspend

Well, of course the house that’s $30,000 above your budget is just perfect. And guess what? The house that’s $200,000 above your budget is even better. The worst mistake you can make is to get in even a little bit over your head. “Just a little bit drowned” is still deadly. The days of piling on tons of bubble equity every year to pull you out of a hole are gone. If you need to get more house, try a cheaper neighborhood or a smaller lot – or try a lowball offer. But be prepared to walk away if they counter it with a number that’s still too high. Set a practical, manageable and comfortable budget before you begin, and then stick to it. If it’s not in your budget, it’s not the house for you. Move on.

Don’t Take a Chance – Have it Inspected

Once you’ve done your due diligence, it’s time to make sure that the house is really what it appears to be. The only way to know for sure is to hire a certified home inspector. For about $400 (plus or minus $100) an inspector will evaluate all of the physical and mechanical aspects of the structure itself, The overall structural integrity of the foundation and walls will be scrutinized, as will the roof, siding, windows, concrete, and drainage. Signs of mold, dry rot, infestation, and water damage in the home's history will be assessed. The plumbing and electrical systems will be put to the test, as will the heating and cooling equipment.

You’ll get a full report indicating problems that need immediate attention, and well as deferred maintenance items you may need to deal with in the future. This gives you the opportunity to negotiate for repairs, obtain discounts with the seller or even to back out of the deal before you give your final commitment. An inspection can be a lifesaver, and you should always add an inspection contingency to any offer.

Look Before You Leap

Never let your decision to buy come ahead of any of the steps, considerations, and safeguards in the purchasing process. Go through the whole checklist before you decide. Don’t make the decision to buy – even if it’s just an emotional decision and not a contractual one – until you’ve looked under every rock, checked out the schools and the commute, talked to the neighbors, checked with the police department – the whole nine yards. Once you let the appeal of the house get under your skin, it may be too late.

The best way to make sure that you have all of your bases covered is to hire an experienced real estate agent. He will keep you on the right track, help you dig up all of the information you need to make the right decision, show you all of the great possibilities available to you, and keep you grounded in the reality of the situation. Remember, he’s been through the process dozens of times, he’s a skilled negotiator and knows the area and the market, and he knows all of the little things to watch out for that you might never consider. With a decision this important, don’t leave anything to chance.

Hiring a Real Estate Agent – the Smart Way to Go

2011-03-15T07:06:00.000-07:00

What’s the big deal? You set a price, put a sign in your front yard and sell your own house, saving thousands of dollars in commissions. Right? Not so fast. Homes sold by professional real estate agents sell faster, for a higher price, and with fewer problems than “FSBO’s.” There is a reason that all 50 states believe in the need for licensed real estate agents. You wouldn’t attempt to draw up your own articles of incorporation for your business, so why drag your most valuable asset into the spinning, crazy world of today’s housing market without the guidance and expertise of a real estate professional? Here are some things for you to consider before trying to do it on your own.

Knowledge is Power

Perhaps the number one thing that will determine if and when your home sells is the price at which you first list it. Arriving at this magic number has nothing to do with how much you love your house, how much your mortgage balance is, or for how much you are willing to sell it. The right agent can position your home to be a great buy at the right market price. The first two weeks on the market are crucial to the sale of a home, and the wrong price can leave it languishing for months with little activity – or it can be snapped up at a bargain price that has you leaving thousands of dollars on the table. In order to do a professional job on the most important sale of your life, you will need to emotionally detach yourself from your home and take the time and effort to study the market in your area. An agent is already an expert in the real estate market. Whether you are buying or selling, you can depend on us to know the trends and the latest information that can make a world of difference in allowing you to make an informed decision.

Every real estate agent is a skilled intermediary and has spent dozens of hours learning the ins and outs of the industry and real estate law, and may have years of experience with homes in your neighborhood. We can filter out the unqualified prospects so that you only have to deal with serious qualified buyers – and you won’t have to worry about being spammed with a ton of worthless emails every time you click on an online site. Agents will provide you with the customized data you really want and need.

You can spend hours trying to find sales of comparable houses nearby, but your agent can give you instant access to everything that has been bought, listed, delisted, and sold in the past years. He has access to the original listing prices, price reductions, days on the market, and if part of the sale price was given to the buyer in concessions. He knows the competition in nearby neighborhoods, school rankings, public transportation, churches, shopping, and commute times. He also knows if prices are rising or falling on your block and what city and private projects are coming that might affect the value of your property for better or worse. In addition, he has shown homes to dozens of buyers and knows what they are saying and why they’re buying the homes that they finally choose.

If you want access to the best information, insider knowledge, advice, and guidance then you will want to use a real estate agent.

Marketing

If you don’t list your home on the multiple listing service, then most people shopping for homes will never know that your house is for sale. If you do list it and put a sign up in your yard, then you have probably already given up about a third of the commission you wanted to save. But listing a home is just the beginning and the easiest part of the effort. Now you have to market it.

First, you have to get it ready for the marketplace. A good realtor will help you stage your home to appeal to potential buyers, so that they can picture their family living there and not feel like they are intruding on someone else’s space when they come through. An agent may suggest some new paint, repairs, or landscaping that will make your home more appealing, based on feedback he has recently gotten from buyers. An agent also knows the strengths and weaknesses of your property, and they often are not the things you’d expect.

Your agent will take photos, or perhaps hire a professional photographer, and put several pictures that show off the strong points of your home in the listing. They will print up marketing materials with the best photos, room sizes, and other important information and list your home on most all of the websites that people often search. Agents tell many other hometown agents about your home at sales meetings and through email, telling them exactly how it may appeal to buyers they are working with. He may mail or email a hundred buyers that he has worked with and send flyers to hundreds of homes in your area. They will also hold an open house for real estate agents and another for buyers on the weekends. Agents will invest hundreds of dollars of his own money and dozens of hours of his time trying to sell your property.

He will also get feedback from other professionals and everyone who views the property regarding price and other issues that he can use to guide you in refining your listing, and the property itself, toward the goal of a prompt sale.

Process, Problems, and Paperwork

Selling a home can be a complicated procedure which is often confusing without a Realtor. The information and knowledge you receive from your Realtor can guide you through the detailed paperwork and process of disclosures and other documents, some required by the state and different municipalities. The disclosures and paperwork include, but are not limited to sellers disclosures, lead based paint disclosures, mold and radon information and notices, use and occupancy certificates, and association resale certificates, to name a few. There are a several landmines that you need to watch out for, and your real estate agent knows them all.

Agents have connections with government offices, contractors, repairmen, inspectors, appraisers, title companies, senior agents, and a whole network of people who can help you or cut through red tape, all at the best prices available. They’ve experienced every kind of problem and know how to prevent those little bumps in the road from slowing down or sabotaging your sale. Not to mention, they can help you find exactly what you’re looking for and negotiate the best possible deal on the next home you buy.

So, you see, there’s a lot more to it than pounding a sign into your front lawn. A real estate agent works harder and smarter for you than you can probably work for yourself. As your representative, a real estate agent is committed to getting you the highest price and the quickest, cleanest sale possible. His own success depends on it.

Top Home Improvement Projects; Understanding How Enhancements Impact Your Bottom Line ROI (Return On Investment)

2011-02-21T14:46:00.000-08:00

Everyone needs to value and protect his or her assets, especially with the current economic situation. One of the best ways to do this is to maintain, manage and make strides toward constant betterment. In a house this can mean any number of things. Whether you choose to enhance an existing bedroom, extend your kitchen, install new flooring in the basement or even replace the garage door – all these and significant others – are excellent ways to strengthen the value of your property. With these home improvement projects, you will enjoy continued returns on the investment that you make in your most cherished asset.

How Does ROI Work?

In real estate it is the formula that is used to compare the cost of remodeling projects with the value those projects will retain at resale. With a little time, energy and effort, you will undoubtedly get back lasting value, increased enjoyment and an enhanced return on your investment. In terms of home improvements, making adjustments to outdated areas of your home, will not only make the space more enjoyable to live in, but it will also increase the resale value of the property. So while it may seem costly to redo the entire kitchen cabinetry and countertops, the chance that you will recover most of the monies spent on the improvement are very high.

Home Improvement Projects Yield Great Returns
Kitchens

Since the kitchen is usually the area in a home that gets the most traffic, it is often one of the first aspects of a home that is judged during evaluation by buyers. Updated, modern and functional kitchens are an important selling feature. If yours is lacking in any of these areas, by embarking on a kitchen remodel project you will could see significant ROI. While the cost of improving a kitchen can be relatively high, the returns of as high as 72% make the initial investment bearable.

Doors and Windows

One of the easiest ways to change the look of a home while increasing its value at the same time is to update the doors and windows. Considering the growing penchant for energy-efficiency in homes, the installation of doors and windows with high-end, energy-efficient sealing and construction will be a welcome addition to any home. When you look at the amount of money saved each year on energy bills, that alone makes the decision to update this aspect of your house an easy one.

Also with the growing security concerns many people are feeling these days, the confidence level of homeowners (and prospective buyers) will soar with the inclusion of solid, quality entry-exit points and windows. While there is a fluctuation based on the type of doors and windows on costs recouped from the initial expense, in general the returns are significant.

A new and improved garage door is a significant change for the better in most homes and one that has seen a ROI of as much as 84%.

Systems Upgrades

In many cases the core systems of a house, like the heating/cooling system or plumbing – tend not to be changed until they break down. When considering ways to improve a property, examine the condition of these systems and, if applicable, maintain or manage them to a level of improved function. If possible, replace parts or entire ensembles. The returns on these investments will be impressive.

Cosmetic Changes

A fresh coat of paint can do more than just spruce up the look of your home. If you are in the market to sell your house, a simple yet highly impacting project like repainting the walls or installing new flooring in your home, can have an immediate impact on prospective buyers. The additional bargaining power you will get from making such adaptations will be more than worth it.

Outdoor Elements

Not surprisingly, many people give great important to the quality and condition of decks and other outdoor spaces in a home. Whether this means your patio and recreation area, the landscaping or even the type and style of boundary fence – an often underestimated aspect of properties is outdoor care. According to Realtor Magazine, a deck addition can yield as much as nearly 73% return on investment.

Structural Enhancements

This is an often overlooked part of a home since it’s not really visible as much as the elements inside the house. As is the case with system-wide functions, the structural aspects are usually tended to when there is a need for major repairs. Prevention is one way to keep a roof, for example, in top condition and ready for any sudden burdens that may arise such as a storm. Siding is also important when determining a home's overall condition and one that cannot be ignored, especially when you plan to put your house on the market. The difference between having quality vinyl siding installed versus a less-than-desired state can be significant. With an ROI of as much as 70-80%, there is an excellent financial incentive to improve these areas as well.

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No matter which area of your home you decide to improve, the results are unmistakable. Not only will the quality of your life be greatly enhanced but also when it does come time to sell, the value of your home will be significantly increased, giving you an exceptional ROI as a result of those home improvements.

Remodeling Your Bedroom; More Than Just Repainting The Walls But Well Worth It

2011-02-09T13:49:00.000-08:00

When most people consider remodeling their bedroom, they usually have a few things in mind; adding new bedding, changing the drapes and painting the walls a new color. But if you really want to grab the attention of potential buyers or ramp up the value of your home, it will take more than just a few cosmetic changes. Revamping a bedroom can involve a few major and several minor enhancements that, when done, will change the entire face of the space. We’ve put together some key areas that add a great deal of charm while influencing the likes of future buyers.

Flooring

One of the most significant changes you can make when remodeling any space, especially a bedroom, is the flooring. Depending on your goals and end use, decide whether installing a hardwood floor will enhance the space or if adding carpet will soften the room and make it more comfortable. Consider the following essentials: price, time and usage. If the room you are looking to remodel is a kids’ playroom, then installing hardwood flooring may be a smart decision. If you’re changing the master bedroom after years of having a hard surface floor maybe the idea of a soft, wool carpet is appealing. No matter what your choice, changing your flooring will have the single most impact on the new look of your room.

Lighting

Often overlooked, lighting plays a vital role in the design and décor of a space, especially one as personal and private as a bedroom. Some homeowners opt to install skylights during major remodeling efforts. Others choose to change the lighting fixtures themselves. Even if you are working with a tight budget, a simple maneuver like changing a lampshade and placing it in a different spot in the space can make all the difference. If your bedroom has an attached bathroom, remember to keep any new lighting fixtures consistent throughout, including the bathroom.

Fixtures and Hardware

Lightings fixtures aren’t the only fixtures in a room that can have a noticeable impact on the look of a redesigned area. Simple things like door handles or knobs, furniture pulls on dressers, desks and tables, or the things like ceiling fans can dramatically change the décor and ambiance of your room. By remaining consistent in terms of finish (brushed nickel, brass, wood) and size – everything will pull together very nicely, ultimately enhancing the entire home.

Space Enhancements

Who doesn’t want or need extra closet space? When are the windows in our bedrooms large enough to bring in the perfect amount of light and small enough to block out unwanted attention? Usually, there is almost always room for improvement in these areas.

Closets

As families grow and more time is spent in a home, the need to increase the physical storage volume of a space skyrockets. Closet additions are one of the most sought-after remodeling projects undertaken by homeowners. Ranging from some mild demolition and the rebuilding of a new, bigger and better closet – to adding a foot of depth or new doors, updating your closet will not only enhance the quality of your life but it will also make your home more appealing to potential buyers.

Windows

Chances are that unless you built your home in the first place, you had little or no choice in the matter as to how the existing windows were. If your heart was set on bay windows but the house you were buying only had the casement style, the windows were probably not what tipped the scales toward your buying another home. So when it comes to remodeling your bedroom, here’s your opportunity. While it can be an expensive undertaking, new and improved windows are one of the most attractive aspects of a home to potential buyers. They are also one of the easiest ways to transform a space into an entirely new look.

Color

Color does matter. Considering the overall color scheme of your remodeled bedroom, keep in mind that the walls will be semi-permanent. Opt for shades that work well with your furniture, appeal to the rest of your house’s décor and generally make happy the person who will be using the space the most.

Aesthetics

The finishing touches are, for most people, the most fun part of the entire process. Investing in a few new accessories, treating yourself to new and luxurious bedding, laying a fresh rug and making small changes – all are things that will perfect your new design.

When you factor in the benefits one reaps after a remodel job, especially for a bedroom – it becomes crystal clear that whatever the investment, it is well worth it in the long run. Whether or not your goal is to sell the property, offer it for rent or to enjoy lasting use of your home – remodeling the bedroom will enhance the experience. Since a crucial aspect of home ownership is to keep your home maintained and up-to-date, doing so will undoubtedly be useful no matter what the goal.

Spruce Up Your Basement With a Remodel For a Lasting and Positive Effect – in More Ways Than One

2011-01-27T12:54:00.000-08:00

The opportunity that exists in basements is huge – and it’s simply a matter of availing it to the fullest. Many property owners neglect to realize the hidden potential in all that extra space which can offer a whole host of added benefits. Whether you have a teenager who could benefit from his own space, would like a recreation/bar area for entertaining, or if you regularly have guests and want to offer a private living space for them – there are myriad reasons to remodel a basement. A quality remodeling project will address five areas so that you are left with a usable, livable and comfortable space in your basement.

Floors

One of the most noticeable differences in any space, especially basements, is flooring. Most basements have unfinished flooring, so even if you were to install a less expensive industrial-grade carpet it would be an improvement. However, in the spirit of being economical and utilizing all resources, homeowners often upgrade to higher quality carpet or rugs to soften the seemingly harsh or rough basement finish. Wood floors are usually not recommended, since there is a potential for flooding or water leakage from heating/cooling systems. However there are several options that are practical and without compromise on quality. Tiling, linoleum or carpeting are the popular choices these days. Keeping in mind your end use, choose wisely. For families with small children, a solid Berber carpet works very well, whereas empty nesters can get away with tile.

Walls

Like the floors, basements walls are also usually unfinished. Though for several years paneling received considerable slack for being “too seventies”, there has been a recent revival but with an updated style. Instead of the standard plywood paneling we’ve seen in many finished basements in homes built in the 70s and 80s, now there is an influx of walls covered with drywall, architectural panels and even synthetic siding. If budget is a concern, you can get creative with simple tension rods and simple curtain panels, strings of beads or other hanging wall/window coverings.

Bathroom

The inclusion of a bathroom in a basement is a must. Many homeowners who have some experience in Do-It-Yourself projects attempt to do this portion of the basement on their own. If managed properly the workings of a bathroom building/remodeling project, very closely monitored by you, can result in a beautiful addition to the space. Not only will adding a bathroom to your basement significantly increase the value of your home, it will also add a tremendous about of comfort and convenient. Depending on the end purpose plus how the rest of the basement is finished – choose fixtures and other permanent bathroom elements accordingly.

Finish

A lot of basements are used as an extra entertaining space, particularly if you are avid entertainers and enjoy having groups of people over for recreation. Some popular choices are to set up a bar or game room, secondary lounge and relaxation space, an activity space for kids or a library/study or work area as a home office. With just a few finishing touches like putting up wall hangings, decorating with a cohesive style or including some essential furniture items, you will complete the space. For game rooms, installing appropriate elements such as a cork wall for darts or a table tennis area and a wet bar space preferably located near a plumbing set-up are also finishing touches that will perfect the rooms.

Storage

There is hardly a basement that isn’t used for storage purposes – and chances are that even if you already have a finished basement there is probably a space set aside for storage. One of the most popular things to do during a remodel is to get organized – literally. By setting up proper storage systems in terms of the structural aspect, you can minimize space wastage and maximize your basement’s usage. Utilizing the space behind and under staircases, for example, is a very convenient method of using otherwise dead space. By installing simple, durable shelves you can get miles of use out of the area setting it aside for those smaller storage items like tools or garden supplies.

When a home on the market has a finished basement, the basement is usually one of the first things that generate buyers’ interest. Many prospective buyers may not have even had a finished basement in mind at first but when they see an updated, modern and usable space that increases the live-in space by as much as 30%, their interest is piqued.

No matter what your final purpose is in having your basement remodeled, it is undoubtedly a great decision and one that will reap benefits for years to come. So if you can do it, don’t hesitate!

Carpets in Excellent Condition are a Sure-Fire Way to Attract Attention

2011-01-06T10:26:00.000-08:00

Many homeowners underestimate the need for perfect carpeting when it comes time to sell their home. Stains, rips or excessive wear-and-tear are all signs of a home that was not maintained with much care and the last thing you want to do is to create a negative impression. One of the simplest and easiest ways to spruce up the value of your home is to care for your carpets, regardless of whether you have maintained them all along or let them go by the wayside.

When your home is on display during an open house or when it’s been put up for sale, a key factor is to maintain as neutral a look as possible. So, as far as carpets in the home are concerned, they should not indicate whether or not you have had pets, the high level traffic of young children or where you might have had your furniture housed for years on end. When a buyer enters your home for the first time, they should be able to visualize it as their own and the very first thing they will notice, perhaps without even consciously noticing it, is the carpet and how their things will look in the space. Here are some sure-fire tips on how to make the carpet in your home appealing and even inviting to the next hopeful occupant of your home.

Brand New is Best

|If you can afford it, installing new carpet is a great way to lean buyers toward purchasing your home. Just the new carpet smell alone will be a good selling point, since they will most likely breathe a sigh of relief knowing that they can start fresh. Even if they plan to change the carpet soon after moving in, it can make or break their decision of whether to buy your home – making installing new carpet a viable investment for you to make.

Steam Away the Past

Carpets tend to absorb everything around them from pet hair to cigarette smoke and even atmospheric dust and grime. To rid your flooring of the unsightly stains and discolor in general that will result from years of such wear and tear, a thorough steam cleaning from a reputable vendor is an essential step to take prior to putting your home on the market. Additionally, since you will have to remove all furnishings to have the space steam cleaned, this is also a good time to rearrange your furniture in a way to accommodate typical buyers’ tastes, that is, setting things up in a user-friendly and uncluttered way.

Buyers Don’t Like Stains

Though an overall steam clean should be considered an essential aspect of preparing your home for sale, if this is something you cannot or choose not to spend much money on, then it is absolutely vital that you remove all visible stains. No stain is too small to be removed since chances are your potential buyers will be scrutinizing the space very carefully for any flaws. The best way to go about removing the stains on your carpets is to rent a steam cleaner or portable carpet cleaner from a hardware store and do it yourself.

Fresh and Updated

No matter which option(s) you choose, be sure to display your carpet in an updated and fresh way. Old and outdated carpet will not only be unattractive but it will serve as a deterrent since anyone considering moving in to the space may not be able to visualize their own possessions on a badly maintained or unappealing carpet. If you are planning on replacing your existing flooring, do so by choosing neutral colors and/or relatively simple carpet designs like Berber or Sisal, since they are universally attractive and versatile.

There are many opportunities to improve and increase the value of your home by simply cleaning, changing or updating the carpets in your home. With all the other aspects of home maintenance to worry about, this is the easiest and most affordable way to almost instantly attract and keep buyers’ attention and interest in your home.

Good News & Bad News

2010-12-27T08:12:00.000-08:00

The Bad News… Case-Shiller's* September housing report came out worse than expected, confirming to any doubters that the housing double dip is here.

National home prices dropped 1.5% in September. The new data will worsen Case-Shiller's already bearish outlook for the housing market. Earlier this month, it forecast a 7.1 percent drop in prices from Q2 '10 to Q2 '11, with price stagnation through Q2 '12.

This is a brutal forecast, which would have wide economic consequences. Five years after the housing peak, markets in Florida, Nevada and California would remain down around 60 percent.

The Good News… TREND’s MLS coverage area shows that Average Home Sale Prices increased 6.1% when comparing October 2010 to October 2009, prices increased in eight counties with the highest increases in:

Chester County – 22.2% Delaware County – 19.1%

The Bad News… TREND indicated that the Actual Homes Sold decreased when comparing October 2010 to October 2009 as follows:

Chester County – 35.6% Delaware County – 44.5%

The Good News… TREND shows that the Median Home Price increased in our area as follows:

Chester County – 10.7% Delaware County – 10%

The Bad News… TREND also shows Pending Home Sales dropped by 33% overall when comparing October 2010 to October 2009. Sales were 3,900 in October 2010 and 5,867 in October 2009. The decreases in our area were:

Chester County – 22.3% Delaware County – 39%

THE GOOD NEWS… If you have the desire, motivation, the want or need to sell, we can help you to stay ahead of the curve. This market is not at the bottom, but we shouldn’t wait until the “spring market” as some figures will continue to decline. Call me to discuss what we can do to sell your property for the most money TODAY!

*The S&P/Case-Shiller Home Price Indicates measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States.

Your Garage's Hidden Home Value!

2010-12-08T13:15:00.001-08:00

By nature, garages are places where we store many things that don’t want or need in the house. Garages tend to store toys, mementos and many other items that, at one time we thought were vitally important. They are also places where oil and gasoline are spilled due to cars, mowers, snow blowers, etc.

Well, as you can guess, all those boxes, stains, smells, unorganized tools, etc., can add up to an unsightly mess in the eyes of potential buyers. So that means it’s time for a cleanup and, just as important, a rigorous re-organization of the garage to make it “shine” in the eyes of buyers.

First:
Go through all those boxes in your garage and sort out the items. Be ruthless and toss out anything that no longer has any use or meaning. Even better, donate items that are still useful to your favorite charity. You’ll feel great and it will make somebody else happy at the same time. By clearing out all the clutter, you’ll make it easier to take the next step.

Second:
Clean the garage as thoroughly as possible. Get rid of dust and dirt anywhere you find it. If you have minor oil/gas stains on the floor, you may be able to pressure wash them away. However, if they are large and/or long-standing stains, then you’ll need to find a cleanser like TSP (trisodium phosphate) or specially-made cleansers like “Gunk,” “Swab,” etc. that can be found at paint/automotive stores or in sections of “big box” stores like Wal-Mart.

Third:
Consider a “garage organization” system. Usually, the cheapest ones consist of storage bins and wall hooks. But, if you want to spend the money, there are also organizers available with wall panels and flooring. Depending on your needs, an organization system can range from approximately $40 to thousands of dollars.

Simply Google “garage organization systems”, and you’ll find plenty of links to companies selling these products. No matter what system you choose, it will definitely give your garage a clean and professional look. I can’t stress how impressive it is to potential buyers to have a well-organized garage.

This tells them that you’re a person who takes care of every detail of your home and property. And that, in turn, lets them know that buying your home will be a great investment on their part and well worth the asking price.

Want to Add Value to Your Home? Get Into the Kitchen and the Bathroom!

2010-12-01T15:08:00.000-08:00

When buyers come to look at your home, they pay immediate attention to two areas – the kitchen and the bathroom. They know they’re heavily-used areas and also the most expensive to upgrade. Buyers want to know that they are in good in great shape or, at most, need only minor improvements. So, naturally, you want those two areas to shine because they can give you the greatest payback in terms of sale price. By some estimates, you can earn back 80 to 90 percent of your money in resale value! Depending upon the condition of these rooms, improvements don’t have to be all that expensive!

Making Your Kitchen Shine!

The first piece of advice for you actually applies to both the kitchen and the bathroom – use paint! In fact, use high-quality paint. It’s a fact of life that kitchen walls get spattered with grease and bathroom walls get battered with steam and moisture. So, the first thing to do is to take a look at the walls, clean them and then paint them. You should consider the color carefully, as it should be a color that’s relaxing and tends toward a neutral tone.

Once you’ve chosen a color, spend the money on good paint. It will look better and buyers will appreciate the fact that it is washable and easier to take care of and it will give the impression that you’ve taken good care of your home.

An inexpensive “fix” you can do yourself is, replacing the faucet. A visit to a “big box” store like Home Depot or Lowe’s will cost you little money and all you have to do is invest some “sweat equity.” In addition, updating the cabinet hardware can make a huge difference in the overall appearance. Of course, fresh curtains always spruce up a kitchen and warm, friendly lighting can also impact upon a buyer’s first impression.

Another area to look at is the kitchen floor. If it’s worn, I’d recommend that you replace it with a hard-wearing material. Everyone knows the kitchen is a high-traffic area so they’ll look closely at the floor to see if they’ll have to bear the expense of replacing it. Again, if you have handyman abilities, you can do this yourself. There are many inexpensive materials available today that are relatively easy to install, such as quality tile and/or laminate floors that clean up easily.

As for kitchen cabinets and counters, you may want to consider refinishing them or replacing them if they’re in bad shape. This can be rather expensive, of course, but it also might make the difference between a sale and your home staying on the market.

Moving on up in terms of expenditures, buyers today expect modern appliances in the kitchen – stoves, refrigerators and dishwashers, etc. These are big ticket items, of course, but if your appliances are worn or out-of-date, think about replacing them, especially if you’re having trouble selling your home.

Today’s buyers look for spacious kitchens that open on to another room and have a window over the sink. Obviously, if your kitchen doesn’t have these features, it would be far too expensive to put them in. However, you can make your kitchen look as open as possible by making sure the counters are clear, visible pots and pans are ordered neatly, and the floor is free of clutter.

Making Your Bathroom Shine!

If your bathroom is in good to great shape, then it’s a simple matter of paint, as I mentioned before, and a good all-round clean up. Since we’re dealing with sanitary issues, you want this area to sparkle as much as possible.

In addition to fresh paint, if the shower, tub or sink or are not in good condition, I’d recommend that you have them re-surfaced. It is probably not a homeowner job, but a professional can come in and get the job done in about a day and for less money than it would cost to replace them.

Another change that you can make is replacing the sink and tub faucets and update any hardware on the cabinetry, this can help to give an updated look and make the bathroom look as unified and appealing as possible.

Here’s one last suggestion. It’s an expensive one but it’s been proven to add value to your home – add a second bathroom! One-bathroom houses are simply harder to sell and sell for less than ones with two or three bathrooms.

So, if you have the financial wherewithal, consider adding one. A good place for a second bathroom is right off the master bedroom. This will appeal to buyers with children since they’ll have a space separate from the kids. Also, if for some reason, you decide not to sell, a second bathroom will ultimately make life easier for you.

How Do I Find the Property Value Trends in My Area?

2010-10-18T07:20:00.000-07:00

Knowing property value trends can be very helpful to you as a buyer, seller or investor.

As a buyer, you can pinpoint bargains in areas that are trending upward (or downward) in price. As a seller, you can use the information as part of the bargaining process to get the maximum price from the sale.

As an investor, you can use the latest forecasts and trends to determine whether or not you want to invest, when you want to invest, and how much to put into a property.

Remember that trends are not a guarantee of future performance; they are an educated guess as to which way the market is moving. Whatever your real estate goals, you want the latest and best information and you want it from experienced professionals. In terms of your neighborhood and/or city, your local real estate agent is the best source for weekly and monthly trends. After all, it's their job to stay on top of such trends in the markets they serve.

Other organizations provide state, regional and national forecasts. They're often updated on a monthly or quarterly basis.

Sources of Information

Thanks to the Internet, there are many, many sources for data on real estate property value trends. For state trends, go to the Federal Housing Finance Agency website at (http://www.fhfa.gov/Default.aspx?Page=215).

Click on ‘Pennsylvania’ to get the Housing Price Index (HPI).

If you're wondering exactly what the HPI measures and how it's calculated, here's what the site says:

"The HPI is a broad measure of the movement of single-family house prices. The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or re-financings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975. The HPI serves as a timely, accurate indicator of house price trends at various geographic levels. Because of the breadth of the sample, it provides more information than is available in other house price indexes."

So, if you want property value trends for Pennsylvania from the FHFA site, click on "State HPI Summary" and scan down the list of states until you find Pennsylvania. The handy table gives rankings and trends in Quarterly, 1 year, 5 year and "Since 1991 Q1" columns.

On the same site, you can also click on "Research and Analysis," and you'll get a list of government and industry sites which will provide you with information on property trends.

Note: The FHFA site does not provide predictions; it simply reports data.

To get analysis and predictions, try the respected RealtyTimes.com. It reports on current market conditions and provides advice to consumers as well. Another site for information on residential properties is Zillow.com. To find local information, fist click on the "Local Information" tab. That takes you to the page where you'll find the "State," "City," and "Nearby Neighborhoods" tabs. Click on the appropriate names, and you have local information!

There are many, many other websites from which you can gather property value information. I don't have the space to list them all, so here's a partial list of major industry and governmental agencies:

• National Association of Realtors
• Freddie Mac
• National Association of Home Builders
• Census Bureau

Of course, the network, cable, and satellite channels such as CNN and MSNBC report many of the findings from the sources listed above on a national level.

But, if you want local information, I recommend you work with your local real estate agent! He or she is best positioned to give you the latest information on property value trends. To see what I can do for you in that regard, please contact me.

WHO Determines the Value of Your Home?

2010-09-27T13:40:00.000-07:00

It's the job of the real estate appraiser. His or her job is to evaluate a property and tell you, the buyer, what condition it is in and the value. Of course, as a seller, you can also have your home appraised so you get an objective "third party" view of your property.

Real estate appraisers are licensed by the state. Regulations vary, however, so I recommend you contact either me or a bank for information on qualified and ethical appraisers (more on this later). Often, they are independent contractors associated with appraisal firms headed by a Certified Appraiser or the equivalent.

What are the Benefits of Using an Appraiser's Services?

When you are a buyer, appraisers can provide you with two great benefits:

First of all, they can uncover hidden problems that could end up costing you a lot of money down the line. Their appraisal can help you to either avoid the property all together or negotiate a lower price to compensate for future costs.

Second, appraisers can do the opposite -- uncover hidden opportunities for you! For example, you might be considering a home that doesn't look all that wonderful on the outside, but is actually in solid shape as far as its structure is concerned. So, through an appraiser's efforts, you may end up with an outstanding bargain.

From the seller's viewpoint... an appraisal can uncover items that need to be fixed before you put your home on the market. This ensures that your property is in the best shape possible before prospective buyers ever look at it.

What Kind of Report Will I Receive from an Appraiser?

A certified appraiser should provide you with a written report. These reports generally consist of the following nine items:

1. A description of the property and its location based on a visit to the property by the appraiser. The appraiser evaluates the condition, overall livability based on design, layout, and appeal to the market, and other external factors).

2. An evaluation of the “highest and best use” of the land; that is, the use for a piece of land, or property in general, that maximizes its net present value.

3. An evaluation of sales of comparable properties (usually three) as similar to the appraised property as possible.

4. Information regarding current real estate activity and/or market area trends.

5. An evaluation of the overall real estate market in the area.

6. Statements about items the appraiser feels are detrimental to the property's value, such as poor access to the property.

7. Notations about seriously flawed items, such as a crumbling foundation, leaking roof, etc.

8. An estimate of the average sales time for the property.

9. What type of area the home is in (a development, stand alone acreage, etc.).

How Do I Find a Certified Real Estate Appraiser?

I can direct you to very qualified appraisers, or you can find one through your bank, as it too should have a list of approved appraisers. If you decide to find an appraiser on your own, check his or her background carefully. As with any profession, there are always a few scam artists who inflate appraisal amounts in order to make more money.

Check with the Better Business Bureau and the Pennsylvania State Appraisal Board. You can also check with your bank to make sure an appraiser is not blacklisted.

How Much Does An Appraisal Cost?

Generally speaking, an appraisal runs from $300 to $500. However, fees do vary with location.

If you need more information on real estate appraisers or any other real estate topic, be sure to call me. I would love to discuss these matters with you!

WHAT Exactly Determines the Value of Your Home?

2010-09-16T10:25:00.001-07:00

Basically, a home's worth is determined by its market value. How is "market value" determined? Most often, it's figured by a comparison ("comp") with homes similar to yours in the surrounding area. So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the same range. But market value is also determined by a number of factors including the following:

External Factors

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers. A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc.

Internal Factors

The condition of a home's interior also has a huge influence on prospective buyers. When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them. Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc.

Supply and Demand

This simply refers to the number of homes for sale versus the number of buyers. When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing fewer homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell. Location... More than likely, you already know the old saying, "There are three main factors in real estate - location, location, location." While that is not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc.

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood

Aren't Allowances Made for This? Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So dollar adjustments are made for the differences between your home and comparable properties.

Where Do I Find Sales Comparison Information?

The easiest source to access is your Realtor. After all, it's his or her business to know that information! But there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. ) The Local Assessor's Office

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll. Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service.

2.) Online Private Companies

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee. If you wish to get more specific, you can Google "real estate database" and type in "Pennsylvania" to get additional property information.

3.) Your Local Newspaper

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections.

The Key to Getting the Price You Want (or Close To It) for Your Home

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the Realtor! He or she should work hard to qualify those buyers upfront so the right people are viewing your property! In other words, the Realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you. See how I do that for you by calling me today!