Estate Owned Homes

Grown children frequently have fond memories of growing up in a property and remember all the hard work their parents did to maintain it.  Their parents may have paid $50,000 for a property that is now worth $500,000 and would have been thrilled by the appreciation. The children are more likely to focus on  recent home sales and may view their childhood home with rose colored glasses. 

I recently became executor of my mother's estate.  My mother wasn't particularly wealthy, but it's still a big job to gather information and complete required paperwork.  I'm relieved she didn't have any real estate to sell.

I have acted as a agent for both buyers and sellers for estate owned home sales, and have concluded that  it may be harder for the children of deceased parents to sell a home than it would have been for the parents to do so themselves. 

I once represented a young couple buying their first house which was an estate owned property. The price they paid was fair, but the seller thought it was a little low. He decided to sell his parent's home to the couple because they wanted to restore the tiered backyard flower garden that once was magnificent.  That flower garden was his mother's pride and joy and he was pleased by their plans to restore it.  At settlement, the seller broke down and cried.  He was saying goodbye to his childhood home and his memories, but trusted the buyers to take good care of his family home.

When I took the Senior Real Estate Specialist (SRES) course, I found that my instructor specialized in estate home sales.  At first that sounded like a great specialty.  Business is referred to him by attorneys trying to settle estates in which the heirs are disinterested or uninvolved.   As the agent, he is able to set the price at a saleable level  and, because the properties are empty, there is no problem with potential buyers being able to schedule appointments.

At first that sounded like a great specialty, but nothing is as easy as it first appears. My instructor went on to explain that he sometimes has to get homes fumigated because the owner is found dead in the property.  Elderly people sometimes are unable to maintain or clean their properties; so, he sometimes has to deal with unsanitary situations including removal of  insects and rodents.  Because he has been able to handle these types of situations quickly and effectively, he has developed a reputation with estate attorneys. and continues to get referrals.

My only suggestion for buyers who are interested in an estate owned property in which a family member is the executor, is that it may be hard for the sellers to let go.  If the executor thinks you appreciate and maintain the property, you are more likely to come to terms with him or her on price and conditions.

For sellers of estate properties, try to be realistic about your childhood home.  To maximize the eventual sale price, make sure it is clean and  in good repair.  It's still a tough market and you are likely to be competing for buyers with sellers of newer properties. Your realtor can help you  price the home correctly, but if it have doubts about the proper price, or if the home doesn't sell in a reasonable amount of time, consider getting an appraisal and list the price close to the appraisal level.

Has the Real Estate Market Bottomed Out?

Whenever I go to a social event, I am asked, "How's the market?" or, "Has the real estate market bottomed out?"

Nobody has a crystal ball that can precisely predict a turn in the real estate market, but the national press has been publishing articles that view the market more favorably than it has in years.  Among other sources, the National Association of Realtors is guardedly optimistic.  CNBC recently published a positive article, http://www.cnbc.com/id/45816002/, citing encouraging signs in the housing market.

No one would suggest that you start flipping houses, but today's market with it's low mortgage interest rates and historically affordable prices, may offer opportunities for home buyers who are likely to stay in a property for seven to ten years. 

The housing market gets a lot of attention in the national press, but, for us in Bucks County, it is the local market that  matters.  While home prices did continued to deteriorate in 2011, there were some positive signs such as a noticeable decrease in the number of homes on the market in Bucks County in November, 2011 compared to November 2010.  We'll have to wait a few months to see whether positive trends continue.

Pricing Homes For Sale in Bucks County

Sometimes I feel like the Grinch that stole Christmas. It's especially true when I have to tell home sellers that their home is not worth nearly as much as they thought it was.

I'm a homeowner, myself, who bought in 2007 so I feel the sting.  Most people who purchased homes in Bucks County since 2004 are not going to break even if they sell soon.  Sellers who have spent money on expensive upgrades that are not generally appealing to sellers may also be in the hole.

Last week I met with a nice home owner who had built his home and has lived in it for over forty years.  There were some expensive features in his home, but it was in a flood plain and had flooded in the past.  With so many houses to choose from, I was pretty sure his property would not sell easily.  When I told him 
what I thought the market value was, he responded. "Honey, if you think I would sell it for that you are crazy."  While I felt bad for him and could see many positives in his home, I think he was viewing his home through rose colored glasses.  Consequently,  I referred him to a home appraiser so he could seek a comprehensive evaluation of his home

We in Bucks County are more fortunate than homeowners in many parts of the country.   On average, home sale prices here have decreased about 21% off their highs; whereas, homes in many areas of the country have had a 50% decrease in value. The fact is, homes were never worth what they were selling for in 2006.  This isn't much of a consolation to homeowners that will be selling their homes at a loss, but they need to be realistic about market facts if they really want to sell. Now that the boom is over, homes should be viewed as domiciles, rather than as a key element of retirement plans.

The good news is that homes in Bucks County are selling if they are priced correctly and marketed aggressively.

Wonderful Restaurant in New Hope

If you are in New Hope, you might want to try one of my favorite restaurants, the Inn at Phillips Mill.  The food is wonderful and, if you enjoy old inns and romantic settings, this place is a winner. http://theinnatphillipsmill.com/ It's located on River Road, about a mile north of New Hope Boro.

The restaurant is a BYOB.  My husband and I dined their Sunday night.  Appetizers, entrees and coffee will run around $80.00 for two including tax.  Your tip will be extra.

This is just one of the wonderful restaurants in New Hope and the surrounding area.  Bucks County has many good restaurants to choose from.

Newtown Township, Bucks County, Home Sales Statistics

Newtown Township Home Sales Statistics through November 30, 2011 are now in.  Here are facts in a nutshell for single family home sales:

·      The number of homes on the market increased 2.5% in the past year from 122 in November, 2010 to 125 in November, 2011.

·      The average price of homes for sale decreased 10.6% from $458,000 in November, 2010 to $410,000 in November, 2011.

·      The number of homes sold during the first eleven months of 2011 decreased 18.8% from 191 in 2010 to 155 in 2011. 

·      The average sold price to original listing price was 93% during the past year.

Comparing current data with Newtown Township Home Sales Statistics for prior years, it's  apparent we are still in a buyer's market.

	2011	2010	2009	2008	2007
JAN	13	7	7	13	11
FEB	5	9	6	17	16
MAR	11	11	13	21	22
APR	10	25	15	13	14
MAY	15	21	17	28	31
JUNE	23	42	30	34	37
JULY	24	18	29	31	27
AUG	14	19	30	21	36
SEPT	15	15	21	13	16
OCT	8	15	22	19	17
NOV	16	9	19	7	19
DEC		11	14	10	13

Source:  Coldwell Banker Hearthside Realtors market research based on Trend MLS Data

New home construction is still taking place in Newtown Township, and new homes are generally  priced above the average sale price of resale homes in the township.  When one or more new homes sell, the average home sales data can be distorted by the higher prices; so, in Newtown, the trend from year to year is more relevant than the data for any given month or year.

Homeowners wishing to sell their homes should understand current market conditions and not expect to sell their homes for prices of homes that sold in their neighborhoods at the peak of the housing bubble. Most buyers will not make an offer on a home they feel is significantly overpriced; so homes that are realistically priced have a better chance of selling.

Buyers now have the opportunity to purchase homes at attractive prices and at record low mortgage interest rates. No one can totally predict the market, but for people planning to stay in the same area for several years, it may be a good time to buy.

Lower Makefield Township Home Sales Statistics

Lower Makefield Township Home Sales Statistics through November 30, 2011 are now in.  Here are facts in a nutshell for single family home sales:

·         The number of homes on the market increased 5.2% in the past year from 194 in November, 2010 to 204 in November, 2011.

·         The average price of homes for sale decreased 2.2% from $499,000 in November, 2010 to $489,000 in November, 2011.

·         The number of homes sold during the the first eleven months of 2011 decreased 10.3% from 291 in 2010 to 261 in 2011. 

·         The average sold price to original listing price percentage was 93% for the first eleven months of 2011 and 92% for the first eleven months of 2011.

The statistics indicate we are in a buyer's market as compared to Lower Makefield Home Sales Statistics for prior years.

	2011	2010	2009	2008	2007
JAN	15	16	14	21	18
FEB	13	11	8	12	22
MAR	22	23	12	14	28
APR	16	28	14	18	25
MAY	23	29	18	23	23
JUNE	38	57	31	39	46
JULY	26	24	34	30	56
AUG	31	39	36	31	37
SEPT	36	26	24	23	30
OCT	15	16	24	19	35
NOV	24	22	25	7	31
DEC		14	15	14	28

 Source:  Coldwell Banker Hearthside Realtors Market Research and TRend MLS Data

  Homeowners wishing to sell their homes should understand current market conditions and not expect to sell their homes for prices that homes sold in their neighborhoods at the peak of the housing bubble. For buyers, home prices and interest rates make homes quite affordable compared  to prior years.