Real Estate Information Archive

Unfortunately, selling your Chester County PA home in the current real estate market can be both difficult and frustrating.  As much value as you may feel your home has, the current conditions might say differently. In this buyer’s market, accurate pricing of your home is imperative in getting your property sold quickly and for the best price possible. While this might sound simple enough, correctly pricing your property is far from easy and is a decision which requires time and effort on your part.  The following tips should help make the pricing process a smooth and beneficial one for you.

1. Do your research: It’s important to know what other homes in your area are selling for right now in order to get an idea of a price point for your own property, but you shouldn’t rely on that alone. An Automated Valuation Model, better known as an AVM, is a web-based technology that immediately generates home values based on data analysis of recent area comparable sales, tax assessments and price trends. Click here for free sites.
    
2. Find the right Realtor: Hiring the listing agent who quotes you the highest price isn’t always wise.  Interview at least 3 Realtors familiar with the area around your Chester County PA home and choose the agent who supports a suggested price with comparative market data. It is the job of your Realtor to know the current market and market trends inside and out, to be closely connected to the real estate market at large, and to be aware of other properties currently for sale in your particular neighborhood.
    
3. Cast emotions aside:   It’s important to remain as realistic and objective as possible when pricing your property. Although your home will most likely be invaluable to you, focus on the statistics from your research and on the advice given to you by your real estate agent for a satisfactory sale.
    
4. Avoid overpricing at the outset.  Because your property has the best chance of selling within its first seven weeks on the market, the longer it stays on the market, the less it will ultimately sell for.  In addition, you will lose out on savvy potential buyers who won’t even come by to look, and fewer knowledgeable Realtors will preview your Chester County PA home.  Lowering your price later will only result in delays and suspicions that something is wrong with the property.

There are many reasons to consider downsizing your present living quarters—retirement, an empty nest situation, financial pressures, a desire to have more free time, health conditions, etc.—but it is not a decision to be made without first doing extensive research, examining your finances, and evaluating the emotional impact of such a move.  As with any major change which affects your life, there are both pros and cons to be recognized and analyzed before taking—or not taking—the final step.  It is wise to consult a Realtor who specializes in downsizing and to read this article on the subject from Smart Money magazine as you investigate the possibility of leaving your Chester County PA home for a smaller residence.

Reasons to stay where you are might include:

• Needing the room you have in your current Chester County PA home for guests and visits from family, especially grandchildren!
• Being unable to part with so many treasured items or large furniture pieces
• Requiring a great deal of storage space
• Feeling comfortable in a large home where you have room to move around
• Belonging to a familiar neighborhood surrounded by friends
• Finding the task of packing and moving too daunting to consider
• Paying high HOA fees and living with restrictions in a condo or townhouse community.

Reasons to downsize include:

• Increasing your monthly cash flow.  Downsizing will result in a smaller mortgage payment; lower utility bills, maintenance costs, and property taxes; and less expensive insurance on your new home.
• Having extra free time once spent on cleaning, doing yard work, and maintaining a larger home.
• Enjoying an easier, less stressful lifestyle with fewer responsibilities.
• Moving to a neighborhood of like-minded individuals—a golf or tennis community, e.g.
• Planning ahead for unforeseen health problems and aging.

If, after weighing both the pros and cons, you decide to downsize your Chester County PA home, there are many sites on the Internet that can help you analyze your finances, estimate moving costs, deal with the emotional factor, and organize the downsizing process itself.  RISMedia offers five solid tips for efficiency, and About.com deals with market timing and when to sell your current home (answer: before you buy a smaller one!)

It is also helpful to personally talk with others who have downsized, Those who decided not to, a Realtor, and your accountant.  This is, after all, a major step in your life, and the more input you receive, the easier it will be to make an intelligent decision.

Yes, you realize that the economy is tough, and, yes, you’re well aware that it is a buyers’ market in the real estate world.  But your Chester County PA home has been for sale for a long time now, and similar houses in the area have been selling.  You’re asking what you consider a fair price for the property, and you allow your Realtor to have periodic open house showings, so what is going on?

Generally the problem lies in one of four areas:  price, condition, availability, and location.

• Price:  In today’s economy everyone is looking for a bargain. With access to so much information on the internet, buyers cannot be fooled because it is very easy for them to compare prices. Many people won’t even bother looking at a house if they believe it is overpriced. Therefore, you should make sure your Chester County PA home is not priced higher than similar homes on the market. However, if you are looking to sell your home quickly, you should set the price even lower than the competition.  For more help with pricing, visit RIS Media and Realtor.com
   
• Condition:  The condition of your home inside and out is critically important to making a sale. If your home doesn’t show well, a potential buyer is going to head elsewhere. Because most buyers are looking for a house they can move into without a ton of small repairs and cleanup, you should make any interior or exterior repairs on your Chester County PA home that may be noticeable. While some buyers may be willing to negotiate on the price when there are repairs that need to be done, there are many who are looking for a home with a “move in worry free” condition. Clean and de-clutter thoroughly, and eliminate all odors  For staging suggestions, go to About.Com
   
• Availability:   Getting as many people as possible to view your home is important. Too much restriction on viewing times will naturally lessen the chance of selling the house quickly. Also, restrictions on viewing times may make a buyer may feel that the seller is not flexible and would not be willing to negotiate on anything else.
   
• Location:  When it comes to buying a house location is everything. No matter how beautiful a home is, if it is in a bad location, it will be hard to sell.  To compensate for a bad location, you may reduce the price of your Chester County PA home substantially if it needs to be sold quickly. Click here for possible solutions to a location concern.

If you are one of the millions of Americans whose home has lost value in recent years, despair not.  Whether you’re trying to spiff up your Chester County PA real estate for resale, to raise its appraisal, or just to keep current with updating and maintaining what you currently have, there are many relatively easy and budget-worthy steps you can take.   Some of these minor projects designed to increase value are quick fixes while others may require a weekend’s worth of work, but all will certainly revive the look of your property.

Exterior improvements:

• Keep shrubs and trees neatly pruned.  Plant new trees for energy savings and aesthetic value.
• Add low-voltage lighting for pathways
• Pay attention to the front door of your Chester County PA real estate.  Does it need new weather stripping?  A fresh coat of paint? Updated (or at least polished) hardware—knockers, knobs, hinges, and light fixtures?
• Spend $10 to test your lawn for needed nutrients.
• Attend to the garage door.  Use a mixture of one part bleach to three parts water and a soft-bristled brush to give it a thorough cleaning.  Still dirty or stained?  Rent a power washer for about $60.
• Check for faded or peeling paint.  Sand and apply a fresh coat.

Interior improvements:

• If you can’t replace the water heater in your Chester County PA real estate with a tankless model, wrap the one you have in fireproof insulation.
• Install modern light switches and outlets throughout your home.  Add dimmer switches.
• Insulate windows.  (Easy-to-follow instructions.)
• In bathrooms replace dated towel racks, light fixtures, sinks, toilet seats, and hardware.  Purchase a low flow toilet.  Re-grout where needed.  Display matching towels.  If the floor is in poor shape, consider putting easy-to-install vinyl tiles right over the old one.
• Add crown moldings, wood trim, and/or cornices to give room a look of quality.
• Update your kitchen inexpensively by replacing fixtures, faucets, and hardware.  Consider pendant lighting.  Refinish cabinets rather than replacing them.
• Clean and organize all closets. 

For years the idea of a starter home has usually meant a property that may need some work, but a recent survey by Caldwell Banker discovered  that most first-time buyers aren’t in the market for those kinds of houses. According to the poll, 87 percent of recent first-time buyers said that finding a move-in ready home was important to them. These buyers, who accounted for 33 percent of existing home sales in December, stated that the condition and quality of the Chester County PA real estate they purchased mattered a great deal. One Realtor has referred to these folks as “HGTV buyers.’

Nearly all Realtors will tell you that a house which has been well maintained and needs few, if any, repairs, even cosmetic ones, will sell faster than others. While some renovations/repairs may be relatively expensive, such as installing a new roof, repaving the driveway, or upgrading appliances, most agents advise a seller not to undertake major renovations, especially in the kitchen or bathrooms. They advise not spending more than you’ll recoup in the sales price and understanding that major renovations are generally a matter of personal taste..

Remodeling is for buyers, not sellers. Major renovations usually don’t pay for themselves, let alone add enough value for you to make a profit. So why would you want to go through the hassle and the expense right before you move? Concentrate instead on smaller fixes with bigger impact and let your buyers remodel to suit themselves. In addition to removing all clutter from your Chester County PA real estate, thoroughly cleaning the whole house, and downsizing in regards to furniture and personal items, you should also seriously consider:

• Adding a fresh coat of paint (in a neutral shade) where needed
• Presenting a well-tended yard
• Fixing dripping faucets and checking all caulking

If you are prepared to invest some money to improve your home’s presentation, start with the most cost-effective projects and remember to keep a journal of jobs and receipts. Home improvement costs are often deductible (when costs are incurred 90 days before the sale and paid within 30 days after the sale). While lawn-mowing and  weekly cleaning bills do not qualify according to IRS regulations, new paint, a new water heater, or new gutters usually do apply. Some hints:

• Replace broken gutters and shutters.
• New paint indoors or out is usually approved by the IRS for deduction if completed and paid for near the time of sale.
• New floor coverings (in neutral shades) on kitchen and bathroom floors may be another affordable investment which can speed a sale by appealing to buyers’ desire for a property that is ‘ready to move in,’ particularly if the current style of colors are dated.
• Repair broken woodwork, loose planks, and creaky stairs. No buyer wants a home that needs structural repairs.
• Hardwood floors are a plus. If you have hardwood floors, consider removing anything covering, them up, especially if the carpet is worn. Refinish the wood if necessary.

So if you want a quick sale and hope for top dollar, take steps in advance of listing to convince potential buyers that your home is move-in ready and definitely one worthy of an “HGTV” buyer!

For the latest Chester County PA real estate market conditions in your neighborhood, please call me at 610-564-SCOT or visit ChesterCountyHomeSource.com.

In recent years of ever-increasing fees by service repair companies and continued belt-tightening by home buyers, the provision of home warranty protection plans by sellers has become a rather common--and even expected--incentive. The knowledge that they won’t be hit by unexpected repair bills in the first year after purchasing their Chester County PA home is reassuring to buyers, especially first-timers who have no experience in home maintenance.

A home warranty plan is essentially a service contract that covers a major housing system, for example, plumbing or electrical wiring -- for a set period of time from the date a house is sold. The warranty guarantees repairs to the covered system and is renewable.

How Much Does a Home Warranty Cost?

They are fairly inexpensive, typically ranging from $250 to $400, depending on coverage. Home warranty companies sometimes run special sales and either discount policy prices or offer additional coverage for the same price. The policies are prepaid for a year in advance, at which time they expire or can be renewed.

How Do They Work?

Although specific plans provide for specific types of coverage, most operate the same way.

• If a home system or appliance breaks or stops working, the home owner calls the home warranty company.
• The home warranty company calls a provider with which it has a business arrangement.
• The specific provider calls the home owner to make an appointment.
• The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.
• The home owner pays a small trade service fee (less than $100).　

Types of Coverage

Because all plans differ, you will want to ask specifically what is covered. Ask your real estate agent to recommend a proven plan and inquire if upgrades are available for your Chester County PA home. Pay close attention to whether the home warranty company will pay for repairs to make certain types of systems or appliances compliant with new regulations and be aware that they won’t pay for pre-existing conditions. Usually covered are heating and cooling systems, water heaters, appliances, electrical systems, inside plumbing stoppages, ductwork, ceiling fans, and garbage disposals.

Advantages Of Offering a Warranty Plan

Home warranty companies profess that in addition to providing buyer peace of mind, the protection plan you provide for your Chester County PA home prevents many post-sale disputes, speeds up the sale, and helps to bring in a higher price. They also suggest that you take out such a policy during the listing period to provide peace of mind to you, the seller, too!

For years the idea of a starter home has usually meant a property that may need some work, but a recent survey by Caldwell Banker discovered  that most first-time buyers aren’t in the market for those kinds of houses. According to the poll, 87 percent of recent first-time buyers said that finding a move-in ready home was important to them. These buyers, who accounted for 33 percent of existing home sales in December, stated that the condition and quality of the Chester County PA real estate they purchased mattered a great deal. One Realtor has referred to these folks as “HGTV buyers.’

“This is absolutely the story of the market, “ says real estate agent Beth Freed. “It seems buyers will pay a premium , engage in a bidding war, and even overpay just to avoid buying a ‘project’ house.” So what does this mean for you as a seller of Chester County PA real estate? Nearly all Realtors will tell you that a house which has been well maintained and needs few, if any, repairs, even cosmetic ones, will sell faster than others. While some renovations/repairs may be relatively expensive, such as installing a new roof, repaving the driveway, or upgrading appliances, most agents advise a seller not to undertake major renovations, especially in the kitchen or bathrooms. They advise not spending more than you’ll recoup in the sales price and understanding that major renovations are generally a matter of personal taste..

Remodeling is for buyers, not sellers. Major renovations usually don’t pay for themselves, let alone add enough value for you to make a profit. So why would you want to go through the hassle and the expense right before you move? Concentrate instead on smaller fixes with bigger impact and let your buyers remodel to suit themselves. In addition to removing all clutter from your Chester County PA real estate, , thoroughly cleaning the whole house, and downsizing in regards to furniture and personal items, you should also seriously consider:

• Adding a fresh coat of paint (in a neutral shade) where needed
• Presenting a well-tended yard
• Fixing dripping faucets and checking all caulking

If you are prepared to invest some money to improve your home’s presentation, start with the most cost-effective projects and remember to keep a journal of jobs and receipts. Home improvement costs are often deductible (when costs are incurred 90 days before the sale and paid within 30 days after the sale). While lawn-mowing and weekly cleaning bills do not qualify according to IRS regulations, new paint, a new water heater, or new gutters usually do apply. Some hints:

• Replace broken gutters and shutters.
• New paint indoors or out is usually approved by the IRS for deduction if completed and paid for near the time of sale.
• New floor coverings (in neutral shades) on kitchen and bathroom floors may be another affordable investment which can speed a sale by appealing to buyers’ desire for a property that is ‘ready to move in,’ particularly if the current style of colors are dated.
• Repair broken woodwork, loose planks, and creaky stairs. No buyer wants a home that needs structural repairs.

Hardwood floors are a plus. If you have hardwood floors, consider removing anything covering, them up, especially if the carpet is worn. Refinish the wood if necessary.

So if you want a quick sale and hope for top dollar, take steps in advance of listing to convince potential buyers that your home is move-in ready and definitely one worthy of an “HGTV” buyer!

Yes, there are still qualified buyers out there, but the supply of Chester County homes for sale is far greater than the demand for them, and today’s buyers can afford to be very selective. Your house may have excellent curb appeal and be beautifully staged, but if you really want to sell in this market, you must be realistic, flexible, and creative when it comes to pricing, availability, flexibility, and motivating the buyer to purchase your property.

PRICING: A few years ago, you probably could have sold your home for what you think it is worth today--or even more--but that is most likely no longer the case. Of course, the thought of taking a loss is a bitter pill for you to swallow, but if that’s what the recent sales in your neighborhood indicate, you may have no choice. It is important that you and your Realtor, after reviewing comparables, be objective and set a realistic price that will draw buyers. Keep in mind that the buyer is looking for the best possible deal and will avoid even looking at an overpriced house.

AVAILABILTY/FLEXIBILITY:

• Exposure and showings. Since so many potential buyers go first to the internet to scout out homes, make sure that your Realtor has your listing on his website. Also make certain that your Chester County home is always available (and ready to tour) for showings. A Realtor’s lockbox is a good way to ensure unrestricted entry for agents.
  
  
• Closing dates: Again, you need to be as accommodating as possible. Many buyers want a closing date as quickly as possible, and it is helpful if you are prepared to at least consider such a request.
  
  
• Negotiating terms of the contract: If you have a solid offer from a qualified buyer, resist the temptation to quibble over relatively unimportant matters. If refusing to leave the drapes or an appliance is going to kill the deal, you may well regret your inflexibility later.
• Timeliness: In the current market conditions, you no longer have the freedom to take a few days to think about an offer made on your Chester County home. Buyers will expect a response (preferably one with few, if any, counters) within 24 hours. Waiting longer than that too often results in a withdrawal of the offer.

INCENTIVES: Today’s sellers are turning more and more to finding ways to create interest in their property and motivate hesitant buyers. Since builders of new homes offer such incentives, it is becoming commonplace for other sellers to do the same. Examples of incentives include:

• Paying points will reduce the buyer’s upfront cost and appeals to the cash-conscious.
• Buying down the interest rate: Offering to pay discount points to lower the buyer’s interest rate will make your home more affordable, and thus more appealing.
• Paying for some or all closing costs: By doing this you are once again decreasing the amount of upfront cash needed by a buyer. You can specify the amount you will contribute or the items you will cover.
• Offering upgrades: Rather than replacing the carpet or appliances ahead of the sale, you can allow the buyer to choose colors, designs, etc., and decorate in their own taste. Other upgrades can apply to bathroom fixtures or landscaping.
• Providing a home warranty: If you are competing with newer properties, a home warranty will give the buyer some insurance against costly repairs during the first year or two. Such an offering is relatively inexpensive but is appealing to a concerned consumer.

Note: if you do offer incentives of any kind, make sure that they are included in your real estate listing.