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