Low Ball Offer? That's Great!

RECEIVED A LOW BALL OFFER?  TURN THAT OFFER AROUND!   Receiving a low offer on your home can be a disappointment. You have planned well, staged your home, provided great curb appeal, have many updates and have priced it correctly. But you can turn that low offer into something fantastic if you do not take the offer personally and look at it in a business sense. This is why it is very important to hire a Realtor to sell your home. The Realtor will take the emotion out of the process and act as a buffer between the Seller and Buyer or Seller and Buyer's Agent. It cannot be an emotional process as so much will be overlooked. So let's look at the positives of a low offer. You HAVE an offer! Someone is interested. Someone likes your house and someone thought enough of your house to take the time to write an entire Agreement of Sale! That's great news! Now that you have the offer it's negotiation time! I cannot tell you how many times I have seen low ball offers only to bring them right back up to where the Seller wanted to be. In one instance the initial offer was off by $30,000.00. A few Buyers haven't realized that the market has leveled out and that the Sellers are definately back to true market values when listing their homes. That's okay it can be worked with and eventually you may get the outcome you originally wanted. When you receive a low ball offer let the Realtor speak for you. He or She will take the disappointment out of the situation, they can take the anger out of the situation and the disbelief we sometimes see as well. Without those emotions they can then turn a low ball offer into an offer the Seller will be happy receiving. Jennifer Daywalt, Realtor RE/MAX Results Realty Phoenixville's Home Town Realtor Top Realtor 2004-2011 www.JenniferDaywalt.remax.com Author of "Ask The Realtor" in The Phoenix RE Blogger for The Phoenix 610-489-7355 Main - 610-999-7693 Direct

Phoenixville Living!

Phoenixville Living...   Everyone knows that the Real Estate Market across the Nation has suffered in the past 2 years. Phoenixville was no exception. However we did not take the plunge that many other areas have seen such as California, Arizona and Florida. The market seems to change on a weekly basis. One week lots of showings, one week none. But I have to say the past few weeks have been great for our local Real Estate Market. Homes are selling quickly and for a good price. Five of my listings sold quickly and within 3% of the list price, one in 13 Days, one in 3 Days, one in 23 Days, one in 17 Days and just recently one under agreement in 5 Days. This is a very good indication that our market is rebounding and that the rebound may be quick. This does not mean homes are going to rise quickly in market value however we are on our way, we did not lose much in terms of market value compared to other areas surrounding Phoenixville and the market does seem stable. And why not? Phoenixville is such a great place to live with lots to offer. We are central to so many different areas, close to the train station in both Paoli and Norristown and we are located right outside of a National Park. We have beautiful trails, calm streams and relaxing waterfalls. When you live in Phoenixville you have the ability to enjoy a morning bike ride, relax with friends and coffee downtown, shop in the afternoon or picnic in the Park, walk or bike the many trails, BBQ in your yard surrounding by great neighbors or enjoy a great dinner in one of the many tempting restaurants downtown, all without getting into your car. Living in Phoenixville provides you with access to the Library, Schools, Parks, Shopping, walking and bike trails surrounded by nature, a Hospital and local major routes that can connect you to wherever you want to venture. We live in a great town with festivals and great community involvement. We come together when one in our community is in need without a second thought. It only makes sense that our Real Estate Market would rebound quickly and steadily. With so much to offer it's a great place to live.   Jennifer Daywalt, Realtor RE/MAX Results Realty Phoenixville's Home Town Realtor Top Realtor 2004-2011 www.JenniferDaywalt.remax.com Author of "Ask The Realtor" in The Phoenix RE Blogger for The Phoenix 610-489-7355 Main - 610-999-7693 Direct

WHY SHOULD YOU HIRE A BUYER'S AGENT?

Why Should You Hire a Buyer's Agent? The first obvious reason is that it doesn't cost you a cent to do so. Many buyers have the misconception that if they do not hire a Buyer's Agent they will pay less for the home or they will get a special break that doesn't exist. Remember the commission structure has already been established and negotiated with the Seller by the Listing Agent. Whether or not a buyer hires a Buyer's Agent has no effect on that negotiated amount.

The work for the Buyer's Agent actually begins AFTER they have shown a buyer homes and written the Agreement of Sale. There are inspections to be set up and replies to be made. They work closely with the Mortgage Lender to be sure all is in order and they make sure that the Listing Agent/Seller has all of the certifications and payoffs as well as inspections completed prior to the settlement.

A Buyer's Agent will also be sure that a buyer is notified immediately when a home comes onto the market and matches the buyer's criteria, will schedule the showings and take the time to comp the property for the buyer. There are numerous contingencies involved in the Agreement of Sale therefore it is important to have an experienced Buyer's Agent looking out for you, the Buyer.

Hiring a Buyer's Agent is just as important for New Construction as it is for resale properties. As a buyer you should not step foot on the property of new construction, even just to gather a brochure, without your Buyer's Agent. Doing so will eliminate your ability to have your own representation and the Site Agent on New Construction represents the builder. Many situations can arise and without your (Buyer) own representation you could be in for major headaches.

Buyers - Align yourself with an Experienced Buyer's Agent who will take the time to answer all of your questions throughout the entire process and will work for you. Be sure they are Experienced and a FULL-TIME Realtor. Can you only see homes in the evenings and on weekends? Let the Buyer's Agent know this and be sure they are available for you!

 

Jennifer Daywalt, Realtor
RE/MAX Results Realty
Phoenixville's Home Town Realtor
Top Realtor 2004-2011
www.JenniferDaywalt.remax.com
Author of "Ask The Realtor" in The Phoenix
RE Blogger for The Phoenix
610-489-7355 Main - 610-999-7693 Direct

Flipping Homes

FLIPPING HOMES, MAKE A PROFIT

 

Many investors may feel that this is not a good market to flip homes. It is. Any market is a good market. If the investor is educated and knows the area in which he/she is flipping, it can be lucrative in any type of market.

Sometimes investors want to brag about the fact that they offer the best homes in a particular area or they put more money into flipping homes than any other investor. While this may sound great to some, the truth is many investors are "overflipping" homes. They are over improving and doing much more than what needs to be completed and at a great expense.

In an earlier Blog I stated that appraisers do not take into account that a kitchen has top of the line faucets, custom kitchen cabinets or granite countertops. A new kitchen to an appraiser is a new kitchen. The extras are not making a difference to them. Therefore when flipping a home, although extra improvements may sell the home quicker as the buyer is visual, it will not add more market value. Here are a few ideas to get investors started...

• Do not tear down walls if not necessary. Much of the Charm in our area are the old plaster walls. If you can salvage them do so and avoid the expense of new drywall;
• You do not have to re-wire the entire home unless you feel the wiring is dangerous. Instead upgrade the panel box;
• When renovating the kitchen be careful not to blow your entire budget. Inexpensive cabinets can work just as well as custom cabinets especially if the hardware is appealing. Very nice countertops exist, granite and corian are not necessary;
• Do not change the water service in the house to a PEX system. Most do not even know what it is and although it's a great feature, it adds no value to your home;
• Hardwood flooring can add some value to a home however exotic hardwoods will not. Stay with the normal hardwoods, oaks, etc. and do not waste your budget on more expensive flooring;
• Tiling the kitchen and the bath floors will add value; expensive custom tile will not add any more value, save your budget.
• Adding a full bath or 1/2 bath will also bring you a profit; adding a 3rd bath, when not the norm in the area, or adding a full bath to the 1st floor will not. Many buyers view a 1st floor full bath as a glorified 1/2 bath as most will not use it as a full. You will realize the same profit with a one piece tub surround as you will with a tile surround. Do not customize the tile surround in a bath.

Do not make the mistake of over improving. There is money to be made with this type of investing if you can hold your ego at bay and complete the renovations correctly. Fresh paint, a nice, but not overly ridiculously improved kitchen and bath, hardwood floors and a few accents will make you a nice profit.

I have seen investors put over 100,000 into a home and lose any profit when all that was needed was perhaps $40,000 in improvements. That is a loss of $60,000! Pay attention to the comps in the area. Pay attention to the homes that are selling more quickly. Are they under $200,000? $300,000? It is very important to have all the data at your fingertips to make an educated decision on the type of flip you will be doing.

Remember an experienced Realtor will be able to tell you where the house will sell when all is said and done. Be sure they show you the comps that are available. Do not let a Realtor tell you it will be worth much more than the current comps, it will not. Do your homework. Do not comp a twin to a single or vice versa. Many investors make the mistake of adding for this and taking away for that not realizing that appraisers do not work this way.

 

Jennifer Daywalt, Realtor
RE/MAX Results Realty
Phoenixville's Home Town Realtor
Top Realtor 2004-2011
www.JenniferDaywalt.remax.com

Sellinghomesjenn@aol.com
Author of "Ask The Realtor" in The Phoenix
RE Blogger for The Phoenix
610-489-7355 Main - 610-999-7693 Direct

Choosing a Home Inspector

CHOOSING A HOME INSPECTOR   Choosing a home inspector is no different than choosing anyone else to represent you.  You want to be sure they have experience in inspecting the type of home you are purchasing especially if it is an older home.  There are many issues that are "normal" for the older homes and you want an inspector who can and will take the time to explain all of that to you.   You should also hire an inspector who will provide you with a full typed report with numerous photos AT the inspection...not days later.  There is no reason why in this day and age an inspector is not able to do so.  It will keep your memory fresh about the inspection that just took place and the photos will help you identify problems.   A home inspection on a home 1400-2000 sq. ft. should take no less than 3 hours depending on the condition of the home.  Larger homes will take longer and smaller homes will take a shorter amount of time.   Ask your Realtor or friends/family members if they have any recommendations regarding a home inspector.  Word of mouth from those that have had a good experience is a great way to locate one.  Call that inspector and have a conversation.  Make sure they make you feel comfortable. Jennifer Daywalt, Realtor Phoenixville's Home Town Realtor RE/MAX Results Realty Licensed in PA since 2001- Collegeville  Top Realtor 2004, 2005, 2006, 2007, 2008, 2009, 2010  www.JenniferDaywalt.remax.com Author of "Ask The Realtor" Saturday The Phoenix Newspaper Main Office 610-489-7355 Direct Line 610-999-7693 Follow me on Facebook   Read my Real Estate Blogs

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FHA Limits May Be Reduced

FHA Limits May Be Reduced on October 1, 2011   Buyers currently in the market to purchase or those on the fence about purchasing should make note that as of October 1, 2011, if Congress does not pass a bill to keep limits at current standards, FHA loan limits will be decreased.  All counties in our area will be affected.  This can greatly affect your purchasing power with FHA Financing by reducing the amount of the loan you are able to obtain.   The potential changes for loans originated on or after October 1, 2011 are as follows:   Berks County from $300,000 to $271,050; a decrease of $28,350.00 Bucks County from $420,000 to $379,500; a decrease of $40,500.00 Chester County from $420,000 to $379,500; a decrease of $40,500.00 Delaware County from $420,000 to $379,500; a decrease of $40,500.00 Lancaster County from $383,750 to $271,050; a decrease of $112,700.00 Montgomery County from $420,000 to $379,500; a decrease of $40,500.00 Philadelphia County from $420,000 to $379,500; a decrease of $40,500.00   If you plan on purchasing a home now may be the time to move from the thought process to the action process.  Rates are still very low and homes are affordable.  For more information regarding the possible limits above contact me at Sellinghomesjenn@aol.com.    Jennifer Daywalt, Realtor Phoenixville's Home Town Realtor RE/MAX Results Realty Licensed in PA since 2001- Collegeville  Top Realtor 2004, 2005, 2006, 2007, 2008, 2009, 2010  www.JenniferDaywalt.remax.com Author of "Ask The Realtor" Saturday The Phoenix Newspaper Main Office 610-489-7355 Direct Line 610-999-7693 Follow me on Facebook   Read my Real Estate Blogs