How much should you offer for that home?

You’ve found a home you want to buy, but how much should you offer to pay for it?

One of the most perplexing points in the home-buying process is the decision of how much to offer for the home you want to buy. If you offer “too much,” you might experience buyer’s remorse or feel the house was “overpriced.” Yet if you offer “too little,” you might infuriate the seller and lose your opportunity to purchase the property.

So, what’s the right amount?

To answer that question, you’ll need to do some homework and give some serious thought to how sincerely you want to buy that particular home.

Your agent can make offer recommendations
Don’t rely on the listing agent who represents the seller to help you decide how much to offer for the home you want to buy. Rather, ask your own real estate agent about the asking and selling prices of other homes in the area and market conditions that might indicate whether you should offer more or less than the seller’s asking price.

If the market is characterized by multiple offers and strong demand relative to the supply of for-sale homes, you might want to offer more than you would if the market were characterized by price reductions and weak demand relative to supply.

You also might want to offer more if the home has certain features that are must-haves for you, but aren’t widely available on other comparable homes in the area.

Time pressure could be another reason to offer a higher price if your current home is already on the market or you need to move by a certain date due to school schedules, employment or other reasons.

Some buyers try to anticipate the direction of home prices and build that expectation into their offer. Future prices may be important if you intend to sell the home within a few years, but market cycles may be less relevant if you plan to stay put for a while. Moreover, sellers may be loath to discount their asking price simply because you think prices might be lower in the future.

Offers that are contingent upon an appraisal, financing, the sale your current home or other conditions are less attractive to the seller than are offers that don’t include such requirements. If your offer contains contingencies, you may wish to offer a higher price as an inducement to the seller to accept those conditions on the sale.

Be cautious about online estimates
Automated valuation services on real estate Web sites are a popular resource for home price estimates. These estimates are not appraisals; rather, they rely heavily on historical home-sales data. Consequently, they might not be a reliable indicator of a home’s current value, especially if the market is on a turning point.

A similar resource is local multiple-listing services data about homes that are currently on the market. This data may be available on local MLS or brokerage company Web sites.

Don’t exceed your budget
Never offer more for a home than you actually can afford to pay. Get a pre-approval letter from your lender that states how much you can borrow and an estimate of your closing costs. Be honest with your agent about how much you’re willing and able to spend and what features you must have in your home.

For more information go to www.phillyrealestateinformation.com

Help Your Buyer Daydream

Getting your home ready for a potential sale can be a bit of a nerve wracking task. You have to clean your home immaculately, light it properly, make sure your fixtures sparkle and basically get your home in a condition that you would never live in just to have a stranger walk throughout your house.

While all of that may be true, getting a potential buyer to see your home as you do is a crucial step in marketing your property. The better you convey the unique and wonderful nature of your home, the more likely you are to receive a full offer on the property in short order. Homes that show well have the tendency to sell quickly, meaning that you will never have to clean that particular home so thoroughly ever again.

That is all well and good but for most people, the time and energy it takes to make a home sparkle simply isn’t available. So, to help cut through a bit of that tedium, there are some tips you can use to make sure that your effort is spent in the right area, maximizing the effect on a potential buyer will ensuring that your effort is used in a smart way.

Go On Clutter Patrol
The simple fact is that most buyers will envision your home not in a way that they would decorate it, but in the way it looks when they see it. If your home is full of random toys on the ground or an unmade bed or two, that is the impression the buyer will take away from your entire home. A sloppy, cluttered look is simply not a good image to have attached to your property.

Organization of your home is a great thing to aspire to but not everyone has the time or money to invest in elaborate shelving systems or a clever series of drawers to hold excess items. Instead, be practical about what you pick up and how you arrange it. Your kids’ toys can be out, just not thrown all over the floor. A toy bin is a simple way to get them out of the way of a buyer without calling for excessive effort.

Minimize Your Personal Items
Leaving furniture out that you have purchased to accent your home shows off your personality and is a fine way to give a property a home-like feeling. Leaving out that fun vacation picture you took of your family where everyone is making a funny face might show a little bit too much personality and give the buyer a notion of you that can color how they feel about your property.

Getting a buyer to envision living in the property is the ultimate goal of a showing and with your life dominating picture frames and walls all around the home, that can be a difficult phenomenon to accomplish. Do what you can to remove yourself from the home’s surroundings and instead make it as easy as possible for a buyer to start daydreaming about how the home will fit them, not how it fit you.

Certainly, showing a home can be a daunting prospect at first. Though cleaning is an important part of the showing process, going beyond that without spending too much time and effort through removing clutter and storing away the majority of your most personal items will make the showing of your home more effective. Do what you can to highlight your home instead of your life through your showing and you will achieve better results. Cleaning 10 hours a day is simply not practical. Instead, focus on what you can change quickly to show off the beauty of your home.

For more information go to www.phillyrealestateinformation.com

About As-Is Offers

To make an “as-is offer” is to state that you, the buyer, will take the property in the condition it is in as of the date you make the offer, and will not ask the seller to do any work or repairs to the home. You can see why these offers are so attractive to sellers; they love the idea of being able to mentally move on from this home to the next one as soon as they accept your offer. In the olden days, many states required that certain basic condition standards be met by every property sold, whether or not the buyer asked the seller to do any work: no broken windows, no termites, etc. Today, “as-is” is the default under the contract in many states; unless Buyer and Seller specifically agree that Seller will do something, the property will pass to Buyer in the same condition as when the contract was affirmed. Other states have remained old-school and maintain standards that the Seller will have to — or is expected to — meet prior to closing. Before you spend time agonizing over whether to make an as-is offer, check in with your Realtor. In some markets, sellers expect to have to complete some repairs, so the issue is, well, a non-issue!

If You’re Thinking of Making an As-Is Offer
The ideal property to offer to take in as-is condition is one where:

• The property is new or appears to be well-maintained;
• The seller has prepared their property-related disclosures and shared them with you before your offer (e.g., in a binder at the property or online); and
• The seller has had a pest or “termite” inspection (also known as a Wood Destroying Organism inspection or WDO for short), and/or property inspections prior to listing the home, has given you the opportunity to read the reports, and you feel comfortable taking on the responsibility for the repairs recommended therein.

Whether or not all the above-listed ducks are in a row, you’ll need to weigh the pros and cons of making an as-is offer on a property — and situation — specific basis. Do you have cash to do repairs later? Do you not want the seller to do repairs so you can hire the contractors and choose the supplies yourself? Depending on the severity of needed repairs, are you okay with living in the home and taking care of those gradually over time? Or are you simply unable or unwilling to either have repairs done or live with items needing repair — period?

If you do make an as-is offer, make sure to have your inspections as early as possible and get repair cost estimates prior to removing your contingencies. This way you don’t get yourself in over your head, and you will know whether or not you need to back out or renegotiate with the seller.

Making an as-is offer is essentially your promise that you won’t ask the seller to do any more work to the property. That promise is not set in stone, though, because most sellers would prefer to close the deal with you than to put the property back on the market if major hidden repairs come to light after your inspections. However, you shouldn’t make an as-is offer with the intention to approach the seller and ask for repairs or credits later. Only make one if you’re prepared to handle all obvious needed repairs and some degree of non-obvious repairs that your inspectors might uncover.

If you know from the first moment you see the place that you are planning to ask the seller to fix things or that you are unwilling to take the property if the inspectors find almost anything wrong, then don’t make an as-is offer. (Realtors whose buyer-clients frequently make as-is offers, then try to renegotiate, lose credibility among listing agents. This sort of reputation makes it harder for their buyer clients’ offers to be accepted in the future.) However, if you do make an as-is offer you also shouldn’t hesitate, in the event the inspector comes back with truly major non-obvious and undisclosed items, to issue the ultimatum that you will either need Seller’s help with the work (monetarily or otherwise), or to back out of the deal.

For more information go to www.phillyrealestateinformation.com

Avoiding Closing Derailment

Like a train, a transaction can get derailed at any point on the track. A closing can be hit by a clouded title, a home not appraising for value, a rapid change in interest rates, an undisclosed credit or income issue, or one of countless other unanticipated issues.

Choke points cause delays and delays cause all kinds of problems for buyers, sellers, and agents. Moving plans get thrown into disarray. Interim housing or early-possession requests become necessary. Contingency plans need to be thrown together. Nerves get jangled. The resulting situation can be a nightmare even for the most seasoned agent, and a productivity killer as well.

Eighty percent of the problems in closing transactions fall into three basic areas. Stay on the lookout for these problems and solutions to steer your transactions clear of as much trouble as possible:

1. Documentation and verification: Lenders needs to assemble considerable paperwork and complete dozens of documents based on information submitted by the loan applicants. Then they need to verify all information for accuracy by checking the applicant’s employment status, funds on deposit, and income level. The document preparation and information verification process takes time. Counsel your buyers that if they fail to submit the required information on a timely basis, or if they turn it in piecemeal and bit-by-bit, delays are certain to result.

2. Repairs, repairs, repairs: This is a chokepoint that good advance planning can avert. When you are representing the seller, state clearly in writing that only lender-required repairs will be done. If you don’t, you leave the sellers open to the risk that the buyer will come back with a laundry list of items.

A lender-required note usually limits repairs to structural, mechanical, or health and safety issues – with not a word about nicks in a wall or non-matching door knobs.

Also consider writing a dollar limit for repairs into the initial contract. The number isn’t etched in stone, but it will help keep a lid on the potential amount for which your seller is responsible. The buyers may still refuse to lift the home inspection contingency until additional lender-required issues are dealt with, but the limit will help most of your sellers most of the time.

3. Underwriting of the buyer’s loan: This is the stickiest of all closing choke points because the underwriter has complete power to approve the loan, approve the loan with additional conditions, or suspend the file until certain conditions are met, in which case the borrower starts the underwriting process all over again.

Underwriters check to make sure that the loan meets guidelines for debt ratio, loan-to-value ratio, credit score, employment history, and other qualifications. They also evaluate the loan based on whether it can be bundled with others in a big loan package that can be sold to Fannie Mae, Freddie Mac, or another entity that buys mortgages.

Very few lending institutions hold their loans to maturity. Most write loans, realize profits through origination fees, document preparation fees, and margins on basis points, and then sell the loans within 30 to 60 days, recouping the loan amount to sell again as part of the next loan deal.

If the underwriter approves a loan that can’t be resold, then the lending institution has to keep the loan in its portfolio. If that situation occurs too often, and too many loans can’t be resold, the lending institution runs out of money to loan, driving it out of business.

Of all the choke points in a transaction, the underwriting process can cause the biggest delays. Expect that there will be times when underwriters slow things down with requests for second appraisals or additional documentation of value, especially if the home is in a high price range. Once you clear the hurdle, the documents can be drawn and sent to closing.

For more information go to www.phillyrealestateinformation.com

What Makes First-Time Buyers Tick?

Last winter, when the housing market had cooled and it seemed the only real estate news was bad news, the experts said the market recovery would be lead by first-time buyers.

Like stalled credit, the cycle of buyers and sellers grinds to a halt when first-time buyers disengage. It’s like sand in the gears of the real estate market.”

But then came what’s been called “the perfect storm” for first-timers: houses became more affordable and interest rates dropped to near historically low levels. And first-time buyers came back to the market.

By March, Coldwell Banker reported that entry-level purchasers are now the engine driving home-buying activity in almost every major area in the US. All markets from coast-to-coast are ripe for a reawakening as the weather warms up. First-time buyers seem more acclimatized to economic factors, even though the barrage of bad news continues to flow. Those who are secure in their jobs, have accumulated good down payments, and have acceptable credit ratings are continuing to venture forward, undeterred by tighter lending criteria.

In May, first-time buyers were back in force and with them the beginning of the market recovery. While these consumers appreciate government incentives such as tax credits, greater Registered Retirement Savings Plan deduction limits and rebates on home renovations, it is markedly improved affordability that is proving to be the powerful drawing card.

Coldwell Banker correctly predicted that the activity at the low end of the housing market would kick-start sales in the mid and upper levels of the market as well, to the point that now it looks like 2010 will be one of the best years on record for resale real estate in the US.

So first-time buyers are getting credit for helping the country avoid a longer real estate slump, which has prompted some companies in the financial services industry to take a closer look at what first-timers are thinking about these days. According to a TD Bank study, there is a “marked difference” between the attitudes of today’s 18-34 year-old buyer and that of people aged 55+ when they were first-time buyers of the same age.

Just over half of today’s first-time buyers say they feel financially ready to buy a home, while only 37 percent of the other generations felt ready when they made the decision to buy. However, more than a third of today’s buyers say they couldn’t buy a home without the help of their family (compared to 16 percent of those 55+), and 27 percent of the 18-34 year-olds said they received money as a gift or borrowed from friends and family to buy their home. Only 10 percent of the older generations had financial help from friends and family.

For those 55 and older, paying off the mortgage was the top priority after moving in, but only 49 percent of the new generation of first-timers cites it as the top priority. Renovation work may be top of mind, because 48 percent of new first-time buyers are purchasing houses that are more than 21 years old, and 35 percent said they intend to renovate them.

When shopping for a mortgage, younger buyers shop around more. The older generations tended to stick with their own bank where they were already customers (62 percent), compared to 36 percent of the 18-34 group.

There are so many different options available now, and easier access to information with the use of the Internet, that it’s no wonder today’s first-time homebuyer shops around a bit more. Thirty years ago when people were looking for financing, they usually had limited choices. Now there are many options to explore with your bank including a variety of fixed-rate mortgages, variable-rate mortgages, and even green mortgages for buyers who want to lessen their footprint on the environment. Most of the recent first-timers bought a home in the city (64 percent, compared to 50 percent of the 55+ group), and most bought a house rather than a condo, even in the city.

About a third of the 18-34 year-olds ended up paying more for their home than they initially planned, while just 18 percent of the older generations said they spent more than they intended.

A different survey, highlights the real reason why first-time buyers are motivated to buy. Eighty-four percent of first-timers agreed with the statement that owning a home provides a greater sense of emotional well-being and security.

Eighty-five percent said that even though homeownership may mean more work and effort, they would rather own than rent. Eighty-eight percent in the survey said they would feel more financially secure owning their own home.

For more information go to www.phillyrealestateinformation.com

10 Factors Most Likely to Influence Your Sale

Every one of these items you get on your side of the ledger moves you closer to a sale. Every item on which an owner is unwilling or unable to make a concession on moves you further away from a sale. Just remember whose side you are on!

1. Price the property between WHOLESALE and RETAIL.

2. Be willing to consider offers based on VA/FHA terms. Government terms can give buyers a head start on the ability to afford a home.

3. Allow the property to be shown without an appointment! That’s a nuisance,
but not as bad as being on the market unsold!!

4. Please be gone whenever a prospective buyer– accompanied by a Realtor wants to see the house. And STAY gone until there gone! Buyers need to “try it on for size”, but they can’t do that as long as you’re there. If you are at home, try to keep a low profile. Be friendly but do not force conversation.

5. Eliminate any barrier to a free flow of traffic in the property: Bulky or extra furniture, house plants that stick out into traffic ways, toys or clothes not put away or beds not made, etc. This all slows down traffic and makes rooms look smaller and darker. Turn down televisions and stereos. Let the sun shine in! Pull back curtains and drapes, open up shades. Turn on lights in the evening both inside and outside!

6. Watch dogs that provide so much security that no one can see the property without a death wish are a problem. How much security do you really need? Try to keep them out of the way.

7. Your Realtor is on your side and won’t get paid until you get happy. Advice from a professional is useless unless you take it!

8. Look at the front of your house. Size it up objectively and critically (that’s asking a lot of any homeowner!) QUESTION: if a buyer who didn’t already love you pulled up in front, would the appearance pull them inside?

9. Make any and all recommended improvements with an eye toward neutral marketing (won’t clash with anyone’s taste or furniture color).

10. Be willing to consider ANY offer at ANY time. Remember, you are always the final judge of what’s accepted and what’s not.

Age from the Buyer’s Perspective

From your perspective, your home has grown with you over time, standing with you through all of the major milestones in your life and evolving with your own lifestyle. That evolution might be seen through the changes in the interior design of your home. It might be seen in a new addition or new renovation to the property.

However, how will a prospective buyer view the advanced age of your property? Will they see the love and care you’ve put into your property or will they see the way age has affected the exterior of your property? Will they see a well-decorated property with the feeling of home that you feel or will they see chips in the paint and a crack in the foundation?

As with any step in the real estate process, having the answers a prospective buyer is looking for before the buyer asks will help you convey a sense of professionalism and preparation in your home sale. As a buyer sees your home, perhaps a property that was built in the 1950s, they will of course have that in mind as they look through the state of the home.

The best thing you can do as a seller of the property is keep that in mind when you construct your marketing materials and formulate a strategy for talking to a prospective buyer. When a potential buyer goes through the process of determining whether a home is right or not, they will want to know how age has affected the property. More concretely, they want to know how long the home will last and what kind of care it might need in the future.

While your word might be good enough for your friends and family, it’s probably not going to be good enough for a potential buyer. Yes, you can claim that your home might last another 20 years but without some kind of proof, a potential buyer will disregard your claim as mere marketing fluff to convince someone to buy the property.

To get some proof for your claim, contact a licensed contractor to look at some critical portions of your property that might draw the interest of a prospective buyer concerned about the age of a home. Common things to look at include the roof, furnace, foundation and ventilation system for the property. By getting a contractor to look at these pieces of your home before buyers come through, you can include their estimates in your marketing materials.

These estimates will include the duration each part of the home will last as well as what might have to be done to each component as the home ages further. It might surprise a buyer to know that your home built in 1942 has a longer projection than another one down the street built in 1980. Without the effort put in to find these estimates, a buyer would have never guessed that to be the case.

Anything you can do to give accurate information backed up by evidence to a prospective buyer that makes your home look like a better fit will ultimately help you sell the property quicker and for the price you aim for. While you may think that the beauty of your home might speak for itself, it can never hurt to put additional information in the buyer’s hands. The goal is to help a buyer see your home in the same light you do.

As your home ages, you will see the gradual morphing of your home through the various stages of your life. A potential buyer will see a 20 year old furnace in a home that has a roof that needs to be inspected. Allay those fears with professional estimates and you will go along towards helping a buyer feel as comfortable with your home as you do.

For more information go to www.phillyrealestateinformation.com

Buyers: Price Reduction Not Always a Red Flag

Several years ago, a home listed for sale developed a stigma if it didn’t sell within a month or two. Today, many sellers have homes listed that have been on the market for six months or longer. In fact, it’s so commonplace for it to take a significant time to sell a house that it is no longer a disgrace if a listing doesn’t sell right away.

It’s an irony of the current market that with all the homes offered for sale, many serious buyers can’t find a home to buy. There are often certain types of homes, in certain areas, that just aren’t on the market. These are usually prime properties in excellent condition that have broad-based appeal. When these listings come on the market, they are usually snapped up quickly, despite the otherwise slow housing market.

Many buyers are sitting on the fence at this point, watching the market and waiting for a better time to buy. It’s impossible to time the housing market, so you won’t know precisely when the market will next correct until that correction has already occurred. A market correction can be verified only through hindsight.

Although most buyers feel more comfortable buying in a hot market — even though it may mean paying more — there are some buyers who see a slow market as a good buying opportunity. If you are one of these buyers and you’re having difficulty finding a home to buy, consider the following options.

 

HOUSE HUNTING TIP: Get to know the inventory of homes available in your target area. Some of these listings will never work for you, either because they aren’t large enough or because they have defects you might not be able to live with, like a lot of stairs to the front door. You can drop these listings from your radar.

Find an agent who specializes locally and who will keep you well informed on local market conditions. Ask your agent to sign you up for a listing alert program that will send you information directly from the multiple listing service when new listings come on the market or when the status of a listing changes.

Of particular interest are listings that are back on the market, and ones that have had a price reduction. If a house that’s back on the market is one you were interested in, find out why the deal fell apart. In the past, it was commonly assumed that if a transaction failed it was due to inspection-related issues, not financing. Today, we’re seeing more transactions fall apart because the buyers were unable to secure financing. A seller who just lost a deal because the buyer couldn’t perform could be receptive to a reasonable offer from a better-qualified buyer.

Don’t assume there’s something wrong with the house if it’s back on the market, or if it has been unsold and on the market for a long time. In a changing market, it’s often difficult to select a list price that will bring about a speedy sale. Keep an open mind about listings that have had price reductions. These could have been mispriced to begin with. If the sellers are motivated, they will reduce the price until it is in line with the market.

Some unsold listings haven’t moved because they need too much work. In today’s market, the most salable listings are those that are in move-in condition. Properties that need work should be priced to account for the work that will need to be done.

 

THE CLOSING: Fixer homes may be more difficult to sell in the current market. But, at the right price, a buyer with vision will step up to the plate.

To learn more go to www.phillyrealestateinformation.com

Fitting Into Your New Neighborhood

Here’s some advice on making a new city feel like your hometown

Congrats! You’ve found a new place to live. The next step is turning your new town into your hometown. How do you connect and feel at home in your new community? How can you find a place to “belong”? The road to easy acclimation will depend on three main things:

• What you value most;
• What your local community has to offer;
• What the greater area has to offer.

 

Over the years I’ve lived in a variety of places: a tiny apartment two blocks from the beach in Southern Delaware, a quiet apartment in the middle of New York, and a townhome 20 minutes walking distance to downtown Philadelphia, PA.

Here’s how to acclimated to each new place.

Southern Delaware

The ocean reigns in Southern Delaware, explaining my “two blocks from the beach” location. After driving on the freeway all day for my sales job, I wanted to be able to park my car at the end of the day and walk or ride my bike everywhere. Living in a small beach community in Bethany Beach allowed me this luxury. Taking sailing classes through a community college and the Learning Annex helped me connect with fun, like-minded people in my neighborhood as did attending nearby church services and events.

Jogging on the boardwalk that snaked 3 miles along the ocean to the Navy lighthouse was a way to meet fellow joggers and neighbors. I also frequented a fantastic seafood bar for good music and wine on a Friday night, and I stopped in at a neighborhood cafe for cappuccino and muffins on a Sunday, where I’d interact with folks.

New York

I moved to New York without knowing a soul and spent my first year living in a quirky apartment house with 80 tenants from all walks of life as my neighbors. These Tenants ranged in age from 18 to 85. This incredibly rich experience helped me make friends quickly, leading to volunteer and career opportunities. Soon, I landed an ideal apartment in the Japatown neighborhood.

From day one, I asked myself, “Who do I want to connect with, and what do I enjoy doing or learning? This led me to join my grad school alumni group, take self defense classes and learn massage techniques. I looked in the paper for fun events, like the neighborhood block parties around the city. I ran in the “Bay to Breakers” race and jogged through the city streets, stopping at a smoothie place for a shake. I’d walk instead of taking the bus, and I spent time in my “hood,” whether sitting at an outdoor cafe or hanging out in the park.

Philadelphia, PA

After I relocated to Philadelphia, caring colleagues took me under their wing, introducing me to their friends and hangouts. I gathered information on local events at the Visitors Information Center, took a trolley tour through neighborhoods, and rented before buying to get a feel of what part of town felt most like home.

Through joining the Chamber of Commerce, Business Networking International, Toastmasters and the Philadelphia Track Club, it was easy for me to get connected. I also joined a book club, which I’m still part of, 5 1/2 years later. Last, I took classes at a community college. Through friends, community newspapers and bulletin boards found at coffee shops and organic food stores around town, I keep up on the latest changes in my area.

In my experience, to feel at home anywhere, it’s important to connect with your community and find “your people.” Whether this means joining a ski or chess club, inviting a neighbor over for coffee, or volunteering with Meals on Wheels or at hospice, it’s up to you. The key is simply to take the first step of reaching out. If you find that one activity doesn’t energize you, try something else, until you find your niche.

To learn more go to www.phillyrealestateinformation.com

Real Estate Marketing

Your home should be listed, whenever possible, in the local Multiple Listing Service (MLS) and on other websites, which have a huge online database of homes and virtually 100% of potential buyers who look for property on the Internet.

 

Advertising

The largest expense for a real estate agent has traditionally been classified advertising in local newspapers. However, today properties are also exposed through popular Internet home search/listing services and real estate guides.  Utilizing print advertising together with maximum internet exposure is critical to a successful marketing campaign.

Even with these additional advertising venues, a real estate “For Sale” sign on the front lawn are still remarkably effective. Many realtors use brochure boxes along with these signs to market the property. When appropriate, and with your permission, your agent may send a mailing about your property to neighbors. Sometimes one of them has a friend or relative who always wanted to live in the same neighborhood.

 

Showings and open houses

To prepare your home for viewing, make it as light, cheerful and serene as possible. Your realtor will probably find a tactful way to suggest that you not be present while the house is being shown to prospective buyers. This is done because your presence will inhibit their actions and conversations. They won’t feel free to open closets and cabinets, test out the plumbing, and discuss their observations objectively as they walk through. It goes without saying that your children and pets should not be on the premises either.

If your realtor has scheduled an open house, you may want to notify the neighbors, and assure them that they’ll be welcome. They’ll appreciate the chance to look around in your house, and sometimes they can turn up a buyer among their friends. In preparing for an open house, you should:

• Pull the drapes back
• Light lamps
• Simmer a few drops of vanilla on the stove
• Light your fireplace
• Set the dining room or kitchen table if you have particularly nice linen or china
• Put fresh towels in the bathroom
• Leave the house so your realtor is free to deal with prospective buyers in a professional manner.

 

When preparing your home, think about the techniques that are used to show builders’ model homes. You want your home to look like a model home.

 

How long has your house been on the market?

Professional appraisers sum up their entire body of knowledge in three words — “Buyers make value.” Your home is worth as much as some member of the buying public will come forth and pay for it. After it’s been on the market for months, you’ve been given a clear message that the property may not be worth what you’re asking for it. This is particularly true if there haven’t been many prospects coming to see it. What you do at that point depends on whether you really need to sell, and whether you’re working with a time limit. If you’re not really motivated to move soon, you can always wait – years if necessary – and hope inflation will catch up with the price you want. Buyers become suspicious of a house that’s been for sale for a long time.

If, however, you do need or want to sell, discuss with your realtor a schedule for reducing your price gradually until you find a level that attracts buyers. There’s no point in saying, “We simply can’t sell our house.” Homes sell — if the price is right.

 

If you’re buying another home

Don’t spend a great deal of time worrying about what will happen when you’re selling one home and buying another. You’re not alone. Realtors, lawyers, title and escrow companies have had plenty of experience in arranging contracts and loans so that the two transactions work together smoothly. In today’s real estate market it’s best to list your present home for sale first.

Selling and buying a home is a very emotional event and if you create a “race” by locating your replacement property before you sell your current home, you may lose it to another buyer, who does not need to sell in order to buy. If you do find just the house you want, you can always put in a purchase offer contingent (dependent) on selling your present one. However, in a hot market you will have difficulty getting the house you want this way.

Sometimes the seller will sign a contract agreeing to wait a certain period of time while you find a buyer for your house – sometimes not. What would you do if you were presented with such a proposal, from a buyer who also has a house to sell? If you do find that you need to buy the next house before you’ve received the proceeds from the present one, lending institutions can sometimes make you a short-term “bridge” loan to tide you over between the two transactions. Make sure you fully understand the exposure and emotional investment before proceeding with this type of loan.

For more information go to www.phillyrealestateinformation.com