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.

How Have Home Sales in Upper Makefield Differed by Price Range?

It has been a challenging year for home sales in Upper Makefield.  Luxury priced homes priced over $1 million were particularly affected. Luxury priced homes stayed on the market longer and sold at deeper discounts than homes in other price ranges. 

Homes in Washington Crossing with prices from $400,000 to $600,000 fared much better.  If they were in good condition, had been updated and priced correctly, they sold reasonably quickly and for prices closer to the listing price than homes in other price ranges.

   

Price Range	# Listed	# Sold	% Sold/Listed	Average List Price*	Average Sold Price	% Sold Price/List Price	Average # Days on Market**
$10,000-$400,000	18	16	88.9%	$380,012	$331,812	87.3%	147
$401,000-$600,000	63	32	50.8%	$549,992	$498,290	90.6%	108
$601,000-$800,000	19	8	42.1%	$761,500	$688,462	90.4%	163
$801,000-$1,000,000	24	14	58.3%	$1,006,985	$893,035	88.7%	176
$1,001,000+	51	16	31.4%	$1,873,682	$1,447,120	77.2%	266
Source: MLS TRenD
*  Average List Price is the price when the home was first put on the market under the listing agreement that was in effect at time of sale.  Often the list price is reduced during the contract period. If the list price were reduced, it would not be reflected in this number.  If the home were previously listed with a different agent, the listing price with the former agent would not be provided.
** # Days on the Market indicates the average number of days homes were listed under the listing agreement that was in effect at time of sale.  If a home were previously listed, but off the market for 30+ days, the prior marketing period would not be included in this number.  If you are thinking of selling your home, it is important to be realistic.  Home prices have come down and buyers are well educated when it comes to home values.  Pricing your home competitively  is crucial in this market if you wish to sell a home.

Selling Home in a Tough Market

A friend of mine is selling her mother's home in North Jersey.  The home is out of my sales area, but  she asked for my advise on how to sell a condominium in a community in which there are many similar properties for sale.

My advise to her was that the home must look better than the others on the market and be priced a little lower than the competition.  If that is the case, as long as her agent markets the property correctly, it should sell.

 Desirable homes are selling if priced correctly, but sellers are frequently reluctant to price the home at a competitive level.  In a declining market, looking at the prices at which homes sold for few months ago is not enough. The seller should ask to see comparables of similar homes on the market.  If there are ten similar homes on the market and only two or three can be expected to sell within the next couple of months,  the homeowner should price his home at the low end of the competition. Buyers put a high value on updated kitchens and baths, so if a property has not been updated, the seller should price his property below others that have been.

How the home is presented can make a difference. Many buyers react emotionally to the ambiance of a property. They have a hard time visualizing what a property would look like if changes were made or what their furnishings would look like in the home.  Decluttering and neutralizing a property can make a difference.  Most Realtors can make suggestions on cost effective ways to improve the appeal of a property.

 My friend's mother's home is likely to be decorated in a manner attractive to older people.  The  buyer is likely to be a younger person or couple with "Pottery Barn" taste.  Simplifying the decor and adding a few trendy accessories can make a difference.

Some agents are skilled in staging and others work with professional stagers to make a home that is for sale attractive to the likely buyer.  When choosing a realtor, ask what they will do to help you present your property in a way that will make it most attractive to buyers.