Selling a Home in Montgomery County PA – Reasons to be Optimistic if You Can Lure First Time Buyers

Here’s some up-to-date information on home sales in Montgomery County PA and neighboring Bucks County.  Like most areas of the nation, our region has seen declines in both the number of homes sold and in their prices.  Thanks to a robust and very diverse local economy, however, we have weathered this correction much better than most by many measures.  For example, our average selling prices year-to-date are down by approximately 10% (8.9% in Montgomery and 11.7% in Bucks) compared to the same period last year.  Not exactly the doom and gloom of some particularly hard hit areas of the country which the media love to emphasize.

Typical of market downturns, the lower price ranges have actually held up the best while the higher prices ranges struggle a bit more.  I believe this is especially the case in our current downturn due to purchase incentives (like the $8,000 tax credit) for first time buyers.  If your home is in a price range that is likely to attract this market segment, there’s reason for optimism.  Consider these facts…

Number of Homes Pended* – January through May, 2009

*Homes Pended is the number of homes listed for sale that went under contract with a buyer.

As you can see, there is significantly more activity in the $201-$300k price range and prospects for a sale can be quite good if your home is in this range or closer to it.  In our area, this is a market segment that is largely comprised of first time buyers.  Between now and December 1^st, 2009, these buyers may be eligible for an $8,000 tax credit if they purchase a home before that deadline.  That incentive along with attractive interest rates and reduced prices has spurred the first timers into action.

If your home is in a higher price range, you should be prepared to compete with more listings and for a smaller pool of buyers.  But even in these higher ranges, there are still active buyers.  More than anytime in the last two decades, your home will now need to compete for these buyers in three main areas: Location, Condition, and Price.  Despite the current market, homes that show well, are priced appropriately, and have good locations will sell (and often within a relatively short time).  If any one of these three factors is sub-par, however, it could lead to an extended time on market and an ultimately lower selling price.  If you have a less than desirable location, be prepared to price the home more aggressively (lower) to generate a sale.  If your home has outdated features or deferred maintenance, be prepared to address those areas (this will typically result in a quicker sale and higher net proceeds even considering the costs of improvements).  Click here for some helpful information about the home selling process and about preparing you home for sale.

Copyright © 2009, The Scott Loper Team, All rights reserved.  Selling a Home in Montgomery County PA – Reasons to be Optimistic if You Can Lure First Time Buyers