Showing posts with label Bucks County Home Sale Facts. Show all posts
Showing posts with label Bucks County Home Sale Facts. Show all posts
Monday, April 3, 2017
Will NJ Retirees Continue to Move to PA?
Realtors who sell homes near the Delaware River in Bucks County are accustomed to New Jersey residents seeking to retire and buy homes in Pennsylvania. Historically, their tax burden would be less on this side of the river. This flight to PA may not continue.
In the fall of 2016, Governor Christy signed into law a bill that would significantly reduce the tax burden for New Jersey's retired residents. The state income tax exclusion on sources of retirement income such as pensions, annuities, 401(k) and IRA withdrawals will gradually be increased from $20,000 to $100,000 in 2020 for joint filers. The income tax reduction and the repeal of the NJ estate tax in 2018 make NJ a far more retiree friendly state than it has been in the past.
Property taxes are still higher in NJ than in PA, but that will become a less significant factor now that income and estate taxes have been reduced. While NJ has the highest property taxes in the country, PA has the twelfth highest. Financially, it may no longer make sense for many NJ retirees to move to PA.
Friday, November 18, 2016
How Does Staging Differ From Interior Decorating?
Realtors hesitate to suggest to sellers who have beautifully decorated homes that their homes might sell faster and for higher prices if they did a little staging.
So, what is the difference between interior design and staging?
Interior design involves customizing the décor of a house to fit the individual lifestyle and taste of the homeowners. Objects that evoke positive feelings for the owners make a house a home. It is highly personal.
Staging is Marketing, and just the opposite of interior design. The purpose is to create an impersonal space that focuses on the flow and architectural features of a home. It involves making a home look spacious and bright. Décor should appeal to as many buyers as possible and deter few. It often involves minimizing the amount of furniture and accessories.
When buyers view your home, you want them to remember your beautiful floors, your welcoming fireplace or your sunlit windows, not your Hummel or sword collection. Those items that are not for sale should not distract from the property itself.
It’s upsetting to have relative strangers suggest that you should pack away furniture and beloved objects, but remember, don’t take it personally, it’s just Marketing. Buyers need to imagine their furnishings and treasures in your home and are best able to do so when a home is depersonalized. When you list your home for sale, it is competing with others on the market. Staging is all about making buyers feel like your home will fit their personalities and lifestyles. It works!
So, what is the difference between interior design and staging?
Interior design involves customizing the décor of a house to fit the individual lifestyle and taste of the homeowners. Objects that evoke positive feelings for the owners make a house a home. It is highly personal.
Staging is Marketing, and just the opposite of interior design. The purpose is to create an impersonal space that focuses on the flow and architectural features of a home. It involves making a home look spacious and bright. Décor should appeal to as many buyers as possible and deter few. It often involves minimizing the amount of furniture and accessories.
When buyers view your home, you want them to remember your beautiful floors, your welcoming fireplace or your sunlit windows, not your Hummel or sword collection. Those items that are not for sale should not distract from the property itself.
It’s upsetting to have relative strangers suggest that you should pack away furniture and beloved objects, but remember, don’t take it personally, it’s just Marketing. Buyers need to imagine their furnishings and treasures in your home and are best able to do so when a home is depersonalized. When you list your home for sale, it is competing with others on the market. Staging is all about making buyers feel like your home will fit their personalities and lifestyles. It works!
Saturday, November 29, 2014
The Home Inspection
After a purchase price is agreed on and the agreement of sale is signed, a buyer will generally have a home inspected. Depending on the results of the inspections, the buyer may accept the property as is, cancel the sales agreement, ask the seller to make repairs, or ask the seller for a monetary concession.
The buyer is responsible for scheduling and paying for the home inspections. The seller must allow access to the property. Inspections in Bucks County usually include a general home inspection, termite inspection, and radon test. When the home is not serviced by public water and sewer, water and septic inspections are usually performed. If the home has a stucco exterior, it is likely that a buyer will have the stucco inspected as well. Mold testing and chimney inspections are sometimes performed.
The buyer must act quickly in scheduling inspections. In Pennsylvania, the sales agreement sets deadlines for their completion, and most inspections are completed within ten to fourteen days after the agreement of sale is signed.
Once the inspection results are received, the buyer has the right to ask the seller to address issues raised in the inspection reports. The buyer can ask the seller to make repairs or provide a monetary credit. The seller must then respond to the buyer’s. request. A second round of negotiations may result if the seller does not agree to comply with all of the buyer’s requests. If both sides cannot come to an agreement, the sale will be cancelled.
If a sale is cancelled due to inspection issues, the buyer and seller will sign a release and the buyer’s deposit money will be returned to him. If the seller puts the home back on the market, the seller is required by law in Pennsylvania to update the Seller’s Disclosure to document material defects of which he was previously unaware.
The buyer is responsible for scheduling and paying for the home inspections. The seller must allow access to the property. Inspections in Bucks County usually include a general home inspection, termite inspection, and radon test. When the home is not serviced by public water and sewer, water and septic inspections are usually performed. If the home has a stucco exterior, it is likely that a buyer will have the stucco inspected as well. Mold testing and chimney inspections are sometimes performed.
The buyer must act quickly in scheduling inspections. In Pennsylvania, the sales agreement sets deadlines for their completion, and most inspections are completed within ten to fourteen days after the agreement of sale is signed.
Once the inspection results are received, the buyer has the right to ask the seller to address issues raised in the inspection reports. The buyer can ask the seller to make repairs or provide a monetary credit. The seller must then respond to the buyer’s. request. A second round of negotiations may result if the seller does not agree to comply with all of the buyer’s requests. If both sides cannot come to an agreement, the sale will be cancelled.
If a sale is cancelled due to inspection issues, the buyer and seller will sign a release and the buyer’s deposit money will be returned to him. If the seller puts the home back on the market, the seller is required by law in Pennsylvania to update the Seller’s Disclosure to document material defects of which he was previously unaware.
Wednesday, October 29, 2014
What is a Seller's Assist?
A sellers assist is frequently included in offers to purchase a home.
A sellers assist is a credit that the seller pays towards the buyer’s closing costs. It is sometimes requested by a buyer when an offer is made on a property in order to reduce the amount of cash the buyer is required to pay at settlement for closing costs. Requesting a seller's assist will make a property more affordable for some buyers. If the down payment and closing costs on a $200,000 property are $25,000, a buyer might ask the seller to pay $5,000 towards closing costs, thus reducing the cash needed to purchase the property by $5,000.
A seller’s assist will reduce the proceeds paid to a seller, and, for the seller, it is equivalent to a reduction in the sale price. On the property with the $200,000 sale price, the net sale price would be $195,000.
A seller’s assist may also result from a buyer’s request for repairs due to issues raised during property inspections. In lieu of a seller making requested repairs before settlement, some buyers and sellers will agree that the seller will provide a credit to cover the cost of repairs. This credit will be labeled as a “seller’s assist “ on the final sale proceeds sheet.
Mortgage lenders set limits on the amount that sellers can pay in the form of a seller's assist; so, the amount should be approved by the lender early in the mortgage application process.
A sellers assist is a credit that the seller pays towards the buyer’s closing costs. It is sometimes requested by a buyer when an offer is made on a property in order to reduce the amount of cash the buyer is required to pay at settlement for closing costs. Requesting a seller's assist will make a property more affordable for some buyers. If the down payment and closing costs on a $200,000 property are $25,000, a buyer might ask the seller to pay $5,000 towards closing costs, thus reducing the cash needed to purchase the property by $5,000.
A seller’s assist will reduce the proceeds paid to a seller, and, for the seller, it is equivalent to a reduction in the sale price. On the property with the $200,000 sale price, the net sale price would be $195,000.
A seller’s assist may also result from a buyer’s request for repairs due to issues raised during property inspections. In lieu of a seller making requested repairs before settlement, some buyers and sellers will agree that the seller will provide a credit to cover the cost of repairs. This credit will be labeled as a “seller’s assist “ on the final sale proceeds sheet.
Mortgage lenders set limits on the amount that sellers can pay in the form of a seller's assist; so, the amount should be approved by the lender early in the mortgage application process.
Monday, June 16, 2014
The Best Time of Year to Sell a Home
Spring is generally the most active time of year for the sale of single family residences. Many people move during the summer so children can start school in a new district in September. That doesn't mean that homes don't sell at other times of the year. Not everyone has school age children that are affected by a move. People move for many reasons and may have little control over the timing of their move.
Some sellers delay listing their homes until spring. Doing so doesn't necessarily result in a higher sales price. More buyers may shop for homes in the spring, but there are also more homes to choose from at that time, and sellers have more competition. The summer and early fall are great times to sell a home as well.
Some sellers delay listing their homes until spring. Doing so doesn't necessarily result in a higher sales price. More buyers may shop for homes in the spring, but there are also more homes to choose from at that time, and sellers have more competition. The summer and early fall are great times to sell a home as well.
Monday, March 3, 2014
How's the Bucks County Housing Market Doing?
The real estate market in Bucks County improved in 2013. Demand increased significantly with 38% more homes selling in 2013 than in 2011.
While demand has increased considerably, prices have been fairly stable with an increase of 2.5% over the past two years. The following chart illustrates these trends:
Year Number of
Homes Sold Price Increase or (Decrease)
2013 6,106 2.4%
2012 5,117 .1%
2011 4,423 (5.5%)
2010 4,560 4.3%
2009 4,829 (6.8%)
2008 4,806 (6.7%)
2007 6,048 .6%
2006 6,408 4.1%
2005 7,454 11.6%
2004 7,470 13.1%
2003 6,893 10.0%
2002 6,429 15.6%
Source: MLS Trend
The reason for the prices not increasing relative to the demand is that buyers and lenders are being cautious. The real estate bubble was created by over optimistic predictions of future home values and loose lending practices. Through the internet, buyers have access to information regarding past sales and are able to compare values. They are reluctant to pay more for a home than were recently paid for comparable homes, and lenders are being more cautious in financing those purchases.
The prevailing sentiment of the early 2000’s was that home values will always rise and homes are always an excellent investment has been discredited. Buyers today are less likely to buy a home that they do not consider a good value.
Wednesday, January 8, 2014
Tuesday, November 26, 2013
Bucks County Home Sales Through October, 2013
The first ten months of 2013 showed continued improvement in the Bucks County home sales market. Spring and summer sales were robust, but some of the pent up demand has worked its way through the market and the number of pending sales in October, 2013 were about equal to those in October, 2012.
Tuesday, September 17, 2013
Bucks County Home Sale Facts Through August, 2013
There was a significant increase of 20.5%.in the number of homes sold in Bucks County during the first eight months of 2013 compared to the first eight months of 2012.
Earlier in the year, buyers who were waiting for the market to bottom out decided the time was right to take the plunge. The spring market was busy and some buyers found themselves in bidding wars with other buyers. The increased demand for homes has caused a decrease of 9.3% in the number of homes for sale at the end of August, 2013 compared to the end of August, 2012.
With the increase in demand for homes, sellers expect sale prices to have increased more significantly than they actually have. On average, prices have increased by 2.4% this year.
Interest rates have increased over the last few months. Time will tell whether the increase will have a significant effect on the rate of home sales.
Earlier in the year, buyers who were waiting for the market to bottom out decided the time was right to take the plunge. The spring market was busy and some buyers found themselves in bidding wars with other buyers. The increased demand for homes has caused a decrease of 9.3% in the number of homes for sale at the end of August, 2013 compared to the end of August, 2012.
With the increase in demand for homes, sellers expect sale prices to have increased more significantly than they actually have. On average, prices have increased by 2.4% this year.
Interest rates have increased over the last few months. Time will tell whether the increase will have a significant effect on the rate of home sales.
Saturday, May 18, 2013
Homes Are Selling Again in Bucks County!
What a difference a year makes!
Last year, agents in Bucks County were commenting that there were too few serious buyers and homes were taking quite awhile to sell. This year, sellers of the most desirable homes are frequently receiving multiple offers on their properties. I've had two instances in the past month in which buyers I have been working with have made excellent offers, but were out bid by other buyers.
The figures are striking. The number of Pending Sales as of April 30, 2013 is up 46% compared to Pending Sales on the same day a year ago. Pending sales are the number of homes under contract that have not yet been settled.
Last year, agents in Bucks County were commenting that there were too few serious buyers and homes were taking quite awhile to sell. This year, sellers of the most desirable homes are frequently receiving multiple offers on their properties. I've had two instances in the past month in which buyers I have been working with have made excellent offers, but were out bid by other buyers.
The figures are striking. The number of Pending Sales as of April 30, 2013 is up 46% compared to Pending Sales on the same day a year ago. Pending sales are the number of homes under contract that have not yet been settled.
Monday, April 22, 2013
Market Conditions Update Through March, 2013
The housing market has picked up and realtors are busy. The number of homes sold in Bucks County has increased compared those sold in the prior year, and fewer homes are available for sale.
Most sellers expect prices to have increased, but the statistics do not yet show that to be the case. As demand increases, prices are likely to follow, but sellers who are hoping for significant price increases are likely to be disappointed.
Price increases over the next few years in Bucks County are not expected to increase at the double digit rates they did between 2000 and 2006.
The chart below shows an increase in home sales, but a decrease in prices compared to a year ago. Homes generally go under contract two to three months before they are considered sold. Therefore, statistics for homes that went under contract during the Spring, 2013 market will not be available for a couple of months.
Most sellers expect prices to have increased, but the statistics do not yet show that to be the case. As demand increases, prices are likely to follow, but sellers who are hoping for significant price increases are likely to be disappointed.
Price increases over the next few years in Bucks County are not expected to increase at the double digit rates they did between 2000 and 2006.
The chart below shows an increase in home sales, but a decrease in prices compared to a year ago. Homes generally go under contract two to three months before they are considered sold. Therefore, statistics for homes that went under contract during the Spring, 2013 market will not be available for a couple of months.
Sunday, February 17, 2013
Bucks County Home Values 2001 through 2013
Homes are now selling faster than they were a year ago and prices have stabilized.
The average sale price of single family homes in Bucks County in 2012 was $324,000. This represents no change in prices compared to 2011 and is comparable to sale prices in 2004.
Newer homes commanded relatively higher prices than older homes. Buyers tend to pay more for homes with certain amenities. Homes with open floor plans, hard wood floors,and newer kitchens and baths command higher prices than others. Buyers also value curb appeal and will pay more for homes with newer exterior features such as siding, windows and roofs.
The average sale price of single family homes in Bucks County in 2012 was $324,000. This represents no change in prices compared to 2011 and is comparable to sale prices in 2004.
Newer homes commanded relatively higher prices than older homes. Buyers tend to pay more for homes with certain amenities. Homes with open floor plans, hard wood floors,and newer kitchens and baths command higher prices than others. Buyers also value curb appeal and will pay more for homes with newer exterior features such as siding, windows and roofs.
Tuesday, February 12, 2013
Home Improvements That Pay Off
The 2013 Remodeling Cost vs.Value Report has been released.
The report suggests that keeping your home's exterior looking good is the best way to maintain the value of your home.
In the Philadelphia metropolitan area, the home improvements that resulted in the greatest increase in home value are deck additions, new entry doors, garage doors and siding.
Most buyers express a strong preference for updated kitchens and baths, but the the return on investment is actually greater on improvements that maximize a homes curb appeal.
The report suggests that keeping your home's exterior looking good is the best way to maintain the value of your home.
In the Philadelphia metropolitan area, the home improvements that resulted in the greatest increase in home value are deck additions, new entry doors, garage doors and siding.
Most buyers express a strong preference for updated kitchens and baths, but the the return on investment is actually greater on improvements that maximize a homes curb appeal.
Tuesday, November 27, 2012
Market Trends
The past several years have been tough for homeowners who were trying to sell their homes or hoping to increase their equity. Will the next few years be any better?
No one has a crystal ball, but the predictions made by Fiserv's chief economist are in line with the opinions I've heard from others in the field.
According to an article in the December issue of Money magazine, Fiserv predicts a choppy real estate market in 2013 with prices increasing 3.4% from midyear 2013 to midyear 2014. That trend should continue with an annual increase in values of about 3.3% over the next five years. Keep in mind that these are national projections and local markets will vary.
The predicted annual increase of 3.3% may seem modest compared to the double digit increases between 2000 and 2006, but those increases were caused by loose mortgage lending practices and real estate speculation.
Many older homeowners have been spoiled by the rapid increase in home values since the 1970's when the Baby Boomers entered the housing market. Much of the rise in home prices between the 1970's and 2000 was due to the increased demand for housing by this large demographic group. Now that the Baby Boomers are settled in homes, or are downsizing, demand for housing should more closely match the supply, and prices are likely to appreciate more slowly than they did during that period.
No one has a crystal ball, but the predictions made by Fiserv's chief economist are in line with the opinions I've heard from others in the field.
According to an article in the December issue of Money magazine, Fiserv predicts a choppy real estate market in 2013 with prices increasing 3.4% from midyear 2013 to midyear 2014. That trend should continue with an annual increase in values of about 3.3% over the next five years. Keep in mind that these are national projections and local markets will vary.
The predicted annual increase of 3.3% may seem modest compared to the double digit increases between 2000 and 2006, but those increases were caused by loose mortgage lending practices and real estate speculation.
Many older homeowners have been spoiled by the rapid increase in home values since the 1970's when the Baby Boomers entered the housing market. Much of the rise in home prices between the 1970's and 2000 was due to the increased demand for housing by this large demographic group. Now that the Baby Boomers are settled in homes, or are downsizing, demand for housing should more closely match the supply, and prices are likely to appreciate more slowly than they did during that period.
Friday, October 26, 2012
Monday, October 15, 2012
Bucks County Home Sale Statistics Thru 9/30/12
What a difference a year makes!
The number of single family homes sold in Bucks County during September, 2012 was significantly higher than for September, 2012. The number of homes for sale decreased by 10.3%. The following chart, provided by TrendMLS shows the statistics
It is still a buyers' market, but sellers are gaining more leverage with the decrease in the number of homes on the market.
Prices have not risen. In fact the average sale price of single family homes in Bucks County during the first nine months of 2012 was $275,000 compared to $280,000 during the same period in 2012.
The number of single family homes sold in Bucks County during September, 2012 was significantly higher than for September, 2012. The number of homes for sale decreased by 10.3%. The following chart, provided by TrendMLS shows the statistics
Prices have not risen. In fact the average sale price of single family homes in Bucks County during the first nine months of 2012 was $275,000 compared to $280,000 during the same period in 2012.
Saturday, August 18, 2012
Newtown Township Home Sale Statististics
The number of homes sold this year in Newtown Township through July, 2012 has significantly increased. There was a dip in July but the overall trend is positive. In fact, there were 32% fewer homes for sale in July, 2012 compared with the number for sale in July, 2011.
Average prices in the township fluctuate considerably due to the sales of new construction homes that are priced above the average sale price of existing homes within the township.
A better indication of home sale prices for existing homes in Newtown Township is the statistics for Bucks County. Prices in Bucks were up 1.5% if the average price of sold homes for July, 2012 is compared to the average price of sold homes in July, 2011. However, if home prices for the first seven months of 2012 are compared to the first seven months of 2011, prices were down 1.9%.
It is too soon to tell whether prices have bottomed out, but statistics indicate prices are relatively stable as compared the declining prices experienced since 2006.
This chart shows the month by month and year by year fluctuations in home sales over the last few years.
Average prices in the township fluctuate considerably due to the sales of new construction homes that are priced above the average sale price of existing homes within the township.
A better indication of home sale prices for existing homes in Newtown Township is the statistics for Bucks County. Prices in Bucks were up 1.5% if the average price of sold homes for July, 2012 is compared to the average price of sold homes in July, 2011. However, if home prices for the first seven months of 2012 are compared to the first seven months of 2011, prices were down 1.9%.
It is too soon to tell whether prices have bottomed out, but statistics indicate prices are relatively stable as compared the declining prices experienced since 2006.
This chart shows the month by month and year by year fluctuations in home sales over the last few years.
Subscribe to:
Posts (Atom)