Susan Ringer's Lehigh Valley PA Real Estate Blog

Check out this Salisbury Township Upgraded Two Story Home $319,000

Susan Ringer (Keller Williams Real Estate, Bethlehem PA) — Wed, 23 Jun 2010 15:41:21 -0400

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Susan Ringer, Realtor/Owner

PA License #RS280053

Keller Williams Real Estate

Bethlehem, PA

direct: 484-767-6193

Front Desk: 610-867-8888

sueringer@kw.com

www.palistings.org

Should I sell first or buy first?

Susan Ringer (Keller Williams Real Estate, Bethlehem PA) — Sun, 28 Feb 2010 17:37:14 -0500

This is the age old question in real estate. Kind of like the chicken and the egg. A real catch 22! As a real estate agent specializing in Nazareth, PA homes for sale, I get this question all the time. There is no right answer to this one, however, there are some grave mistakes that can be made if you don't protect yourself with the right contingencies.

The ideal scenario is to get your house in top shape and ready to sell - then we'll list it and sell it. After your home is sold, I help you with purchasing home number two. This scenario gives you the most buying power than any other, however, the obstacles are obvious. You need to find a place to live in the interim and/or you need to store your things. If you have an obliging relative, you can camp out with them for the time it takes to identify your next home and then go to settlement and rent a storage facility relatively inexpensively for your things. The whole process, after you move out of your current home can be accomplished in about 60-90 days if you are diligent, and if your purchase criteria is fairly open. Of course, if you are looking for a log cabin on 4 acres with a south facing sunroom...well...you get the picture - then it will take much longer! A cursory review of existing homes on the market by using my "property search" tool on my website: www.palistings.org will give you an idea of whether or not you should be able to find your next home fairly easily.

Because many people don't want to go the route of imposing on family or finding a short term rental, the second best option is to get your home on the market, under contract with a buyer and once that buyer has gone through the mortgage underwriting and inspections process, etc. and the transaction looks solid, identify your next home. We would execute an agreement of sale "contingent upon the settlement of your existing home". This way, you are protected from having to go through with the next purchase if your first home sale falls through. Of course there are further nuances in the contract that we need to go through, but this is the general idea. You still maintain some good, strong buying power - but the key is that your home needs to be solidly under contract for the seller of your second home to agree with this.

The least desirable scenario, yet one that most sellers seem to want, is the one where you identify your new home first and seek to execute an agreement of sale with a seller of home number two "contingent upon the sale and settlement of your current home". Obviously, sellers do not like this because now they are taking on your home sale as an issue they must rely on in order to move forward in their own life. Many sellers are only willing to entertain this if you pay top dollar for their home, thereby impacting the negotiation of price - and they will put a deadline on when you must have your current home under contract. This means you need to price your current home aggressively to get it sold. Furthermore, in this scenario, the seller of the home you are buying will most likely counter your contingency with one of their own: The "right to continue marketing" which means they can still seek to attract a buyer with no contingencies. If they find one, they could cancel the contract with you and you are back to square one - uggh!

This third type of sales agreement scenario is financially the weakest scenario for a seller/buyer because you may leave money on the table in your home sale and may end up paying much more in the purchase than you need to. My advice to my sellers is to camp out with the relatives for a couple of months if at all possible, or second resort, as mentioned above - get your home under contract first. Although the fear is that you may not find your dream home after yours is sold and then what? I have found that once the decision is made to move, most people are able to find quite readily what they are looking for, so it's not usually a problem. Of course, with the changes in mortgage underwriting, make sure you will qualify for that new mortgage before you do any of this. Relying on your real estate professional and/or a good real estate attorney is always a good way to go as this can get complicated!

Hope you enjoyed this blog post. Feel free to add your comments and questions or email me at sueringer@kw.com. My website, www.palistings.org has alot of good information for buyers and sellers also. I can also send you information on homes sold in Nazareth or other surrounding Lehigh Valley areas.

Susan Ringer, Realtor/Owner

PA License #RS280053

Keller Williams Real Estate

Bethlehem, PA

direct: 484-767-6193

Front Desk: 610-867-8888

sueringer@kw.com

www.palistings.org

Nazareth Area Real Estate

Susan Ringer (Keller Williams Real Estate, Bethlehem PA) — Thu, 25 Feb 2010 22:21:00 -0500

Hi Everyone,

Welcome to my Lehigh Valley Real estate blog - specializing in Nazareth and Surrounding Areas!

If you are looking for some tips on getting your home on the market in the Nazareth PA communities of Bushkill Township, Upper Nazareth, Lower Nazareth, Tatamy, Stockertown or in-town Nazareth, you have come to the right place! As with many markets, properties are still selling here, contrary to what your friends and neighbors or media may be saying. Although you will hear the words "buyers market", don't despair if you are a Nazareth Area seller. Buyer's market simply means that buyers have more options with higher levels of inventory. It does not necessarily mean it's a bad time to sell! A good time to sell is when you want to make a lifestyle change from a housing standpoint. Sure, buyers with more options are going to be a bit choosier about what they buy and what they pay...but if you follow these simple guidelines, you will have a sucessful sale for the highest price in the least amount of time.

There are two basic factors in selling real estate - price and condition. Location is another blog post, but just know this, if you are priced right for your particular neighborhood market, and in the best condition offering the most appeal, your home will sell for the highest possible price in the shortest period of time. Properties always sell, everywhere - there is no "right" location.

Price:

When I do a market analysis for my Nazareth area sellers, I take a three prong approach and review recently sold properties as well as current offerings on the market and expired listings. Breaking it down, of course you want to make sure your price is comparable with homes recently sold in the neighborhood, since the buyer's mortgage lender will be using some of those sales for comparison during the appraisal of your property as part of the buyer's loan underwriting process. However, there is more to it than that. Another rule of thumb is, for example, if you are selling your Bushkill Township home, your comparisons should be other Bushkill Township sales, not Lower Nazareth or Upper Nazareth homes. Each neighborhood can have its own unique qualities, valuations, etc. that must be considered.

Current Nazareth Area properties for sale are very important to consider in your market analysis because it will help you price your home as the best option/value in the market. Again, if you are selling your home in, say, Lower Nazareth, you want to use Lower Nazareth homes for sale in comparison, not homes in Bushkill Township. It is common for sellers to review what others are selling for and think they should price accordingly, however, if those other sellers have overpriced according to recent sales, then following their lead will result in both of your homes sitting on the market, and ultimately yours selling for less (that issue is a different blog post for another day!). Pricing above neighboring properties without justification just to "test the market" is another huge mistake. Studies have proven time and again that doing this will net you less in the end. You never want to be the house that helps a neighbor's house sell by highlighting why theirs is the better option, so don't price above the market, always price yourself "in" the market!

Also, reviewing expired, unsold listings in the process of pricing helps my Nazareth home sellers determine which properties the market has rejected altogether, thereby helping you further evaluate how you will line up in the market.

Condition:

I will do another more comprehensive blog post on how to prepare your home for sale, but will offer you some quick tips here:

Buyers of resale homes in our Nazareth area market are looking for the best value. Value refers to the most/best features, size and amenities for the price. Trying to list your home "as is" can be a huge mistake. You will receive offers far less than if you just took a couple of steps to prepare your home for sale.

In my experience, Nazareth Area buyers are looking for that modern yet warm feel in a home, ie: Pottery Barn style decor and colors. Using stark white on the walls is too sterile. Soft, warm beige and taupe style neutrals are a much better choice. Flooring should be in excellent condition - replacing tired carpeting will result in a return on investment several times over. Updated appliances are another key factor to buyers. If you have an outdated kitchen set up, why not re-paint a modern color, update the hardware and install new counters and appliances for a less expensive upgrade. The same ideas can be applied to bathrooms. Roofing, exterior, etc. should all be in very good repair and the house should be "que-tip clean".

Buyers tend to add zeros on the cost of any repair or upgrade left undone by the sellers, resulting in lowball offers. Think of it like selling a used car. You get it detailed, put new hubcaps on, shine up the leather, fix the scratches, etc. to make it look newer to get the highest level of the book value. Preparing your home for sale is the exact same concept!

Hope you found this article informative. Would love to hear your feedback! If you are considering selling your Nazareth PA home in the areas of Bushkill Township, Upper Nazareth, Lower Nazareth, Tatamy, Stockertown, etc. please contact me either by phone or email! I look forward to partnering with you in the sale of your home!

Susan Ringer, Realtor/Owner

PA License #RS280053

Keller Williams Real Estate

Bethlehem, PA

direct: 484-767-6193

Front Desk: 610-867-8888

sueringer@kw.com