Seller Information

As A Seller Time Is Not On Your Side

January 9, 2015 by admin

The 1964 song Time Is On My Side by the Rolling Stones is a ballad that buyers can embrace. Time is the enemy of sellers and a friend of buyers when it comes to the number of days a home has been on the market.

One of the most frequently asked questions among prospective buyers is, how long has the house been on the market? Days On Market, commonly referred to by it’s acronym DOM, is a key statistic in real estate measuring the length of time a listing has been on the market before an agreement of sale for the property is accepted.

Using the 208 closed transactions in Wallingford, PA during 2014 the chart above measure the percentage of the original asking price of a home that was realized by sellers in relation to the DOM (Days On Market). It exhibits the correlation between the selling price of a listing and the time it is on the market.

In the top performing group of 2014 20 out of 36 sellers, 55.6%, sold their homes in 7 days or less and realized 100.0% of their asking price or above. Overall this group garnered 99.71% of their original asking price. It is also noteworthy that not one listing in this group had a price reduction, they sold so fast that it was not necessary. When a home is properly priced for the market buyers take notice and act quickly.

Homes that sold within 15 to 30 days saw the percentage of original asking drop to 95.85%. Only 23.0% of this group received 100.0% or more of their asking price. Again there were no price reductions in the original asking price in this segment. For the fortunate 91 sellers that sold their homes in 30 days or less they saw on average 96.84% of their original asking price.

Time steadily erodes the value of a home, the longer it stays on the market the less a seller can expect to realize from the sale. The 151 to 180 day segment was a bit of an data anomaly as it registered an increase over the 121 to 150 day segment, but the overwhelming trend is a downward one from day one.

The first price reduction appears in the 15 to 31 day group and price cutting steadily increase as Days On Market increase.

Homes that were on the market 6 months were the poorest performers only garnering 83.90% of the original selling price.

The underscoring theme here is that time is money. The initial price of a listing is a crucial decision that ultimately impacts a seller’s bottom line, price it incorrectly from the start and there is a price to be paid.

The honeymoon for a new listing is a brief lasting 3 weeks at most. During that time a listing will get the most views online, the most visitors through the door, and the most interest by prospective buyers. Once the new listing aura has worn off it becomes increasingly difficult to attract attention, especially if the home is not priced correctly.

Many sellers will say they want to “try” a higher price for a while and reduce it later after seeing what happens. They are oblivious to what peril that strategy entails. The listing is only new once, and the proper pricing from the start is the only way a seller can realize the most financially from a sale. Successive price reductions over the course of a listing is not a viable strategy to produce the most favorable outcome.

Remember it is all about the price, and comparable sales of homes in your area can not be ignored when setting a listing price for your home. Buyers are not interested in what you paid for the home or what you want to realize dollar wise from it’s sale. They are the one who set the market price for your home.

Price it properly from the start and you will reap the most reward, price it too high and the buyers will be like sharks sensing blood in the water as they watch your Days On Market creep higher and higher and offering prices sink lower and lower.

Wallingford PA Real Estate – Wallingford, PA 19086

Who Owns The Oil In The Tank?

December 23, 2014 by admin

You have just filled your oil tank and are heading to settlement on your home at the end of the week. Do you expect to be reimbursed by the buyer for the 500 gallons of heating oil you just purchased?

Did your agent inform you that under the Pennsylvania Agreement Of Sale any heating oil stored on the property is included in the sale of the property? If not you are probably surprised that the buyer will not be reimbursing you for the oil you just had delivered and is not obligated to do so unless you have made specific provision in the contract for them to do so.

There exists specific verbiage in the contract regarding the inclusion of heating oil at settlement:

Any remaining heating and cooking fuels stored on the Property at the time of settlement

When your house is listed during the winter it is advisable that you cancel any automatic delivery of oil to your home and arrange for delivery of smaller amounts of oil as needed.

Wallingford PA Real Estate – Wallingford, PA 19086

Should I Take My Home Off The Market For The Holiday Season?

December 2, 2014 by admin

There are always buyers who need to purchase a home regardless of the time of the year. What varies is the number of buyers in the market at any given time. It is true that buyer activity will slow during the Holidays, but it will not stop. During this time of the year home sellers will ask – Should I take my home off the market for the Holidays?

In my opinion if you are serious about selling your home it should remain on the market during the Holiday season. The bottom line is your home will not sell unless it is available for buyers to see!

Here are some of the reasons that your home should remain on the market in the upcoming weeks:

– Did you know that more corporate relocation takes place in January than any other time of the year? Relocating families often don’t have a choice in when they can leave for their new destination. The majority of these families have children and are more motivated to get their families settled in before either before the January semester begins, or to arrange for the move during spring break.

– At Christmastime, our culture focuses on family and the home. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in a festive environment

– Inventory is at a low point – there is less competition from other sellers which increases the probability a home will sell

– Buyers who are looking during the Holidays are serious and motivated

– Most people take time off during the Holidays, giving them the opportunity to see homes

– Your home will probably never look as warm and inviting as when it is decorated for the Holidays. It is a great time to show it off to potential buyers

Wallingford PA Real Estate – Wallingford, PA 19086

NAR 2014 Profile Of Home Buyers And Sellers

November 11, 2014 by admin

The National Association Of Realtors (NAR) conducts an annual survey of home buyers and sellers evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers. The 2014 Profile Of Home Buyers And Sellers survey was conducted with recent buyers and sellers who bought or sold a home between July 2013 and June 2014. NAR sent out over 72,000 questionnaires in order to compile the data in the survey

Some highlights from the recent 2014 NAR report.

Characteristics Of Home Buyers:

– 33% of recent home buyers were 1st time buyers, trending down from the historical norm of 40%

– First time home buyers averaged 31 years of age – repeat buyers were 53 years old on average

– Median income of buyers was $84,500. The median was $68,300 for 1st time home buyers, and $95,000 for repeat buyers

– 65% of recent home buyers were married

– The typical buyer searched for 10 weeks for a new home, and viewed 10 homes

– Homes purchased averaged 12 miles from past residences, with 50% being located in the suburbs and 16% in urban areas

– 88% of buyers financed their recent home purchase with an average of 10% down

– 12% of al buyers cited saving for a down payment as the most difficult task in the purchasing process

Characteristics Of Homes Purchased:

– New homes accounted for 16% of purchases

– The typical home purchased was 1,870 square feet in size, built in 1993, had 3 bedrooms and 2 baths

– 79% of the homes purchased were detached single family homes

– Buyers expect to live in their home for 12 years after buying

– 79% of buyers believe their home is a good financial investment

Characteristics Of Home Sellers:

– 40% of sellers traded up to a larger size, 47% bought a higher priced home, and 53% purchased a new home

– The typical seller lived in their home for 10 years. In 2007 the typical tenure was only 6 years

– Sellers typically sold their home for 97% of the listing price, and 45% reduced their price at least once

– 17% of sellers delayed selling their home because the value of their home was lees than the mortgage owed

– 36% of sellers offered incentives to buyers, such as seller assists and home warranties

– 9% of home sellers were For Sale By Owners (FSBOs) – on average they sold their homes for 13% less than an agent assisted home sale

Wallingford PA Real Estate – Wallingford, PA 19086

Determining A Home’s Square Footage

July 18, 2014 by admin

Wallingford PA Real Estate - wallingford PA - Tape Measure And Floor Plans

Not All Space In A Home Is Included In A Home’s Square Footage

Size does matter! The square footage of a home is one of the most important factors in pricing a home and is critical input to an appraiser who is establishing the value of a home. Sometimes there is a great deal of confusion by sellers, buyers and agents as to what constitutes valid square footage from an appraiser’s perspective.

What Is The Source Of Square Footage Data For Listings?

The most common source of a home’s square footage is the data contained in Public Records. A countywide assessment undertaken from 1999 to 2000 established the square footage for exiting homes and the assessed value for taxing purposes. Homes built since the countywide assessment have their size and value recorded several months after the home is sold.

In the Multiple Listing Service (MLS) the square footage of a home can be sourced from one of three categories – Public Records which is indicated as an A next to the square footage number, from the seller which is indicated by a S adjacent to the square footage, and by the listing agent which is indicated by a L. The one thing I can comment on is caveat emptor – let the buyer beware – to the listings that have square footage that has been determined by the seller or listing agent. It is most likely an inflated number that includes interior space that will not be counted by an appraiser.

How Is Square Footage Determined?

The square footage of a home is determined by measuring the exterior of a home and then deducting any areas that are not living spaces, such as a 2 story entry foyer and attached garages.

So why is there so much confusion surrounding the determination of how big a home is? It looks like it would be an pretty easy number to determine right? Not so – let’s review some common misconceptions concerning a home’s square footage.

– Any living space that is below grade is not included in an home’s square footage. That’s right – for all of those who have spent thousands of dollars on a finished basement that space it is not going to be included as square footage by an appraiser. Now this is probably the most commonly debated area regarding a home’s living space, but “living space” is defined as an area above grade with finished walls, ceilings, and heat. There are homes whose basements are above grade due the topography of the lot, but in the vast majority of homes a basement fails the above grade test. Recently Fannie Mae changed the guidelines regarding below grade living space stipulating that 100% of the space must be above grade to be included in a home’s square footage calculation

Below grade space can add significant value to a home but will not count as what an appraisers refers to Gross Living Area (GLA) which is their term for interior square footage.

– Below grade space will typically be valued less than above grade living space

– Basement bedrooms do not qualify as a bedroom from an appraisers standpoint and should not be included in the count of the number of bedrooms when listing a home

– A common error in the MLS is the listing of the lower level of a Split Level style home as the basement. It is not a basement it is just the natural lower level of a Split Level design. A true basement is a Split Level would be a below grade basement below the Family Room.

– Interior space that does not have sufficient head room for an adult to stand up in – i.e. the second floor of a Cape Cod style home where the sloping roof lacks adequate head room to stand – is not included in the GLA calculation.

Wallingford PA Real Estate – Wallingford, PA 19086

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Characteristics Of Home Buyers:

Characteristics Of Homes Purchased:

Characteristics Of Home Sellers:

S. Clark Kendus