You scroll through the multiple listing information, watch virtual tours, click on Google Earth to check out the street view and everything about the home fits your needs.  Then, you see that number, the "Days on Market" number, and find out the home has been on the market for 160 days!  Your mind races, what's wrong with this house, is it priced too high, why hasn't anyone snagged this great deal?  

Its amazing the perceptions that can be created from the number of days a home has sat on the market.  As a buyer its easy to assume the worst, I do it myself.  However, the truth behind this number is much more complex than one might think.  Here's a seasonal and general guide on how to interpret "Days on Market":

End of Winter/Early Spring:

Expect longer days on Market.  Because winter is usually the slowest time of year in colder climates like the Philadelphia Region, less buyers are actively looking and most would prefer to settle on a home in warmer more favorable weather.  Additionally, homes look their worst in the winter.  Everything is dreary, gray and cold.  Rather, when Spring roles around, bright colors of leaves, grass and flowers can make a huge difference on the emotions of buyers.  Also, expect larger homes to sit a little longer through this period.  Typically, larger families aren't going to move in the middle of a school year if they can help it.  

My Advice:  Give sellers a bit of a break.  If a house looks good online, definitely check it out.  I've seen some great homes sell for good prices in our market during this period.  Overall, don't be thrown by the days on market.

Late Spring/Early Summer:

High numbers of "Days on Market" is a little more concerning.  May and June historically have the most settlements of any other months during the year.  If a home is pushing 4 - 5 months at this time of year (in an active real estate market), its a pretty good indication that the price is not appropriate for the location, condition and style of home.

My Advice:  Do your research.  Your real estate agent, and some websites, can provide historic pricing information on listing homes.  If the seller looks to be actively adjusting the price through these months, it would suggest the are motivated to sell, maybe just started at too high of sales price.  If the pricing has had little change over the period, make sure you have your agent contact the selling agent.  You might find out that the seller is willing to negoitate, but doesn't want to show a lower price on the listing.  Overall, if you have interest, don't dismiss a home.

Fall/Winter:

Higher days on market is expected.  Depending on your location, the Fall can be great or slow.  The end of Summer typically has buyers a bit distracted by things like school and getting back from vacation.  There's about a 2 month window from September to October where we typically see a bump in sales, but once into November, the holidays take over. 

My Advice:  Give a house a chance, you might be surprised the kind of deals you'll find this time of year.  Seller's start to get motivated to be out of there homes and moved before the holidays begin.

Other things to keep in Mind

- Days on market numbers have creeped up with the slow down of the economy

- If the average days on market for sold properties is much less the current active listings average, this means buyers are jumping when the right homes pop on the market at the right price.  For example, there is a gap of about over 50 days between homes sold (94 days average in the last 6 months) and homes on the market (151 days average) in Haverford Twp.  The good homes are selling quick. 

- If a home is way over the average of the local market, several months, its priced incorrectly. 

- If a home has sat on the market for a long time and the pictures online are bad, you might want to check that one out.  Poor marketing can kill the sale of a good home.

- If you like the house, forget about the Days on Market.  Everyone has different taste and the right home for one person is the wrong home for the next.

Up in Smoke

Several days ago I was out with clients showing an attractive looking colonial home.  The moment we opened the door the smell of smoke smacked me and my client right in face.  Other than a moment of nostalgia, reminiscing of my grandparents old home, my clients started speaking funny without breathing through their noses and began racing through the home.  Not even attempting the second floor, we were out of the home in less than 5 minutes. 

10 years ago the smell of cigarette smoke was commonplace as you walked into a restaurant, bar, or home.  Today, other than the local hole in the wall bar, smoke is a smell of the past!  The days of coming home smelling like you smoked a pack of cigarettes are limited!

With all the laws prohibiting smoking in public places, it almost seems as if the potency of cigarette smoke has strengthened exponentially, especially for buyers in a buyers market.

What to do?

Smoke gets into everything but can be cured.  If your a buyer and find a home you love but smells of smoke, plan on priming all the walls and pulling up all carpets.  I actually had to put on 2 coats of primer prior to painting my walls in my first house. The great thing is, you'll mostly get the home at a discount, because major of buyers don't want to deal with this curable problem. 

If your a seller if you can paint great, if not hears a couple things you can do:

1) Wash Everything - Don't forget curtains, floors, baseboards, walls, clothes, furniture, change light bulbs and even wash your pets. 

2) Air Purification Machines - There are several on the market that will help absorb the smoke in a matter of days.  Its not perfect but does help.

3) After researching several websites (www.howtodothings.com, www.helium.com, www.getridofthings.com, www.howtogetridofstuff.com) it seems that baking soda, vinegar, orange peels, and charcoal are your friends when it comes to removing the smell of smoke.  There's definitely some other wacky ways so check out those links.

4) Open your Windows - Its simple, but its effective

5) Replace filters and get duct work cleaned - Its another service that you might forget.

What not to do

Don't use heavy scented candles and sprays!  Everyone is different when it comes to smell.  Some love it, some despise it. There are some products on the market that do a better job than others, but stay away from those heavy lavenders!  

Bottom Line:  Don't let your house go up in smoke!

Ah, La, Peanut Butter Sandwiches!  I'm not one for predicting the future, but something tells me you might read this headline when November 2010 real estate sales reports come flying at us in the first weeks of December:

"NOVEMBER HOMES SALES DROP (insert any percentage greater than 25%) FROM LAST YEAR!!" 

If there's anything I can say about this prediction, its DON'T PANIC!  Like back in July 2010, when the media had a field day with the news that sales dropped off significantly from June to July, little was initially mentioned that the government incentive programs had run out as of June 30th, 2010.  These programs pushed buyers to purchase homes prior to June 30th in order to take advantage of both the first time home buyer tax credit of $8,000.00 and the $6,500.00 tax credit for existing home owners.  As it caused for an artificial blip in home sales, the media both jumped on the numbers when they went up in June and when they fell off a cliff in July's housing reports. 

If we rewind a little further back to the 2009, you may recall that the original 8,000 Tax credit was offered to first time homebuyers who settled on homes prior to the end of November 2009.  Again, the government incentive drove many home buyers, who were on the fence, to purchase homes sooner rather than later.  Residential sales numbers spiked as expected, however, as the economy continued to lag behind.  Hoping the large tax credits would help jump start the economy and clear out a lot of the incredible housing inventory, legislation in December of 2010 was passed to continue and expand the program into 2010.

So where does that leave us?

My goal is to manage expectations.  The housing news has been fair over the last couple months.  October saw a decent sales numbers but the truth is the holidays are right around the corner and we just got done watching political ads! We're a bit worn out and there aren't any big market motivators to buy before the new year.  In general, my impression of the market is that things will begin to pick up in 2011 as the far swinging pendulum has now had a little time to become less extreme.  My advice is to try not to get upset when the media plays the numbers game in December and let people know why.  Sales haven't spiked and weren't expected to.

My Local Market Numbers of November:

In Havertown (Haverford Township) real estate sales, we saw an incredible increase from November 2008 (23 sold units) to November 2009 (51 sold units, 55% increase).  However looking at trendmls data as of 11:57AM, November 16th, there have been just 13 units sold in November 2010.  As I'm sure we will see this number jump as people will be settling both this week and the week after Thanksgiving, I believe we will see sales numbers in the 20s rather than the 50s.  So could a 50% drop occur...yes, when comparing apples to oranges.

Opportunities come and go, but it's crunch time in the world of Real Estate!  I can't say it enough, its the best opportunity we've ever seen to buy a house.  Low interest rates, large inventories of homes, and motivated sellers.  What could $8,000 dollars do for you?  How could $6,500 help you buy that home with the extra bedroom and bath?

Of course I bought my house 2 years ago and am part of the very small percentage of people who do not qualify for these credits.  But as I dare to dream about Ways I would take advantgage of the tax credit, this is what I came up with:

1. Buy smart - Look for the good location, find out the average sales price in the neighborhood, and find a home below that average.  The only thing you can't change is location, so make sure that's your number one priority.  TAX CREDIT ADVANTAGE: Buy the dated house and use your Tax credit to give the kitchen and baths a modest facelift and repaint the first floor.  You'll build instant equity if its done right and never pull a dime out of your savings.
2. Buy the bigger home - If your buying a new primary residence, you can receive a 6,500.00 tax credit.  With prices soft in the market, you'll not only save big due to the percentage decrease in sales prices of the next home, but get $6,500 towards moving costs and new furniture...come on, everyone loves a new sofa. 
   
3. Save the Money - I know, I know, this is tough one, but these days, its nice to have a rainy day fund.  If you've been prepared enough to make sure your financially ready to purchase, then throw this check right back into the savings account.
4. Use the Credit for another Credit - Take your home buyer Tax credit and put it towards some energy efficient upgrades.  You get a third of your monies spent back (up to $1,500) as a tax credit.  Max out this credit with a $4,500 of windows and you just saved on your energy bills as well.  I think that's a Win-Win-Win. (make sure you check the qualifying specifications of the windows, insulation, etc. before installation)  One other thought, wait until the end of the year so your out of pocket expense can be regained as quickly as you get your tax return submitted the next year.
   
5. Jump Start Your Mortgage Payoff - Start paying down that principal.  Take a look at your amortization schedule and start knocking out future principal payments.  I like to print out the full schedule and cross off every payment I make.  It will save you tons of interest and will cause an quicker increase in the amount of equity you build in your home. 
6. Take a Vacation - Get out out of town and refresh.  This kind of credit could take you really fair once or cover you for the next 5 years. 
   
7. Buy a new Full Suspension Mountain Bike, Flowers for the Wife, Swingset for the Kids...Okay, I think you get the point.
   

All I ask is that you think about it and if you have any questions about qualifying, let me know.  $8,000 is a lot of money.

Take Care & Advantage,

Tyler

Wanna buy a nice house in Havertown (Haverford Township)?  If you don't see a newly listed home in the first 2 days, it might be gone.  Just this past weekend, I found myself in the middle of 3 different deals where there were multiple bids within 5 days of homes being listed on the market.  All three homes were well taken care of, priced well and received great offers.  Get prepared!

What can you do to make sure you don't miss out?

1.) Line up your financing with a reputable mortgage lender.  I can't stress enough that if your not prepared financially, sellers will look onto other offers.  Recently, I've found smaller local mortgage companies to be much more in the know, highly efficient, and the industry experts.  With all of the mortgage changes in the last couple months, the big players in the market are having a really hard time catching up and adjusting.  Financing needs to be strong and you should have confidence in whoever you choose to put together your loan.  Don't just shop rates, ask any real estate agent who's active in the market they will tell you how difficult deals become when your not working with a good mortgage/loan officer.

2.) Find an reputable real estate agent who knows the local Market and has their pulse on the latest listings.  One day could cost you a house.  It seems a bit neurotic, especially when you have national news discussing troubled housing markets, but a good local agent will be quick to communicate which homes will sell quick and which ones you need to be see immediately.  

3.) Drive the Neighborhoods Beforehand!  When a great house pops up, its easy for a real estate agent to say that its a good deal, but its best if you are familiar with the neighborhoods ahead of time so that you jump at the right deals with confidence.  A delay due to second guessing could loose you the house.  I've recently been working on information in regards to Havertown highlights and continue to develop them in further detail.  Certainly if have questions, just ask.  Additionally, if you're looking in Haverford Township and new to the area, I'd be happy to send you a local Township map that shows all of the local establishments, parks, schools, etc.

Don't be discouraged, just be prepared.  With the frenzy that could be caused with the First time Home Buyers Credit ($8,000.00) and Existing Home Owners Credit ($6500.00) expiring as of April 30th, 2010, you can't afford not to make well educated decisions.

Lastly, don't forget that you can actually take advantage of receiving those credits in 2009 by filing the appropriate paper work with your 2009 Tax Returns, after the settlement of your home.  If your settling after April 15th, it would be well worth filing an extension to get the credit.  Make sure to talk to your tax account.

Good Luck!

Its been a very exciting week for me.  We just replaced our original windows on our 75 year old house! 

Okay, it might not be that exciting to you but when everyone in my family is walking around the house with 4 layers of clothing on, new windows are a big deal.  We finally caved in after I'd placed a thermometer on one of the window sills in our bedroom.  With the thermostat reading 64 degrees, my thermometer read 54 degrees!  Even with some old aluminum storm windows, it was a 10 degree difference. 

So we decided to take advantage of the $1,500 tax credit for energy efficiency improvements and purchased new Simonton Energy Star windows.  Knowing that new windows are always a great feature when it comes to the resale of older homes in the Havertown, Pa area, it made sense all around.

One thing that I learned is to make sure that the windows, doors, heating systems, etc. meet the necessary requirements of the energy efficiency tax credit.  Make sure the windows have a U-Factor of .30 or greater.  It might cost you a couple extra bucks, but its completely worth it in the end.

Check out EnergyStar.gov for more details.

The Swell Bubble Gum Factory could become the next site of a YMCA!  While talks are in the preliminary stages, Haverford Township, through eminent domain, has been working on acquiring the existing property and setting up a long term lease with the YMCA.  

I personally think it could be a great addition to the area.  I've heard awesome things about the new YMCAs in the region, from great programming for families to reasonable membership costs.  Also, as I'd love to have access to a local indoor swimming facility, this could be a great centrally located option.  We'll see.

Check out this Delco Times Article for the lastest: 

http://delcotimes.com/articles/2009/06/24/news/doc4a41976fc9b1c225979227.txt

Havertown homes are selling!  With 67 units sold at an average sales price of $292,716, June 2009 marks the highest number of units sold in one month since June 2008 (according to Trend Multiple Listing Service Statistics run on July 1, 2009)

We've not only seen the the most sales in one month (27 more units sold then May 2009) but also the highest average sales price and the least number of Days on Market (68) for 2009.  While June is typically one of the strongest months for residential sales in our area, this information is encouraging in that the trends still exist in our changed economy.

What's Driving the Havertown Market? 

1. First time Home Buyers - 70% of my sales this year have come from first time home buyers taking advantage of great prices, great rates, and the $8,000 tax credit.  
2. Location and Price - Havertown fits the right price range at the right location.  With great neighborhoods, great schools, and great location, their are very few alternative locations that offer all Haverford Township with home selling on average just under $300,000.00.  
3. Trading Up - With the draw of first time home buyers, homeowners looking for more space are finding great deals for less while being able to sell their own homes.  With rates in the low and affordability being the highest its been in years, homeowners are realizing the advantages in this market.

More to come and lots to look forward to.

I'll Keep You Posted!

Watch out, the Mortgage Crisis has just gone Hollywood!  I was in my car listening to our local Philadelphia Morning Show, Preston & Steve, when I heard the hysterical movie promo for "Drag Me to Hell", quite the inventive name for a horror flick.  When a loan officer makes of tough decision to deny the extension of a mortgage payment, the denied borrower casts a horrifying spell onto the loan officer...sending her to hell of course.  

I'm going to put this in the worst case scenario category for things that can happen to loan officers.  

I heard this is based on true events:)

Check out the movie trailer for yourself (its even better then the radio spot):  Drag Me to Hell

Let's all keep smiling.

Cheers,

Tyler