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* See bottom of article for MLS Statistics.
How to Successfully Buy and Sell in Today’s Housing Market
As usual, there’s a lot of activity here in Bucks County, PA – and I’m here to keep you informed. This year so far, we’ve seen lots of swing in terms of value determined by the sellers in our market. We’re looking at a ten percent drop in sales so far but that’s countered by a strong inventory of over 4,000 homes at the moment. A total of 770 homes have sold in 2011 AND you can still grab those super low interest rates before they disappear.
As usual, there’s a lot of activity here in Bucks County, PA – and I’m here to keep you informed. This year so far, we’ve seen lots of swing in terms of value determined by the sellers in our market. We’re looking at a ten percent drop in sales so far but that’s countered by a strong inventory of over 4,000 homes at the moment. A total of 770 homes have sold in 2011 AND you can still grab those super low interest rates before they disappear.
Sellers
The name of the game for sellers is activity. You need to generate traffic and buzz if you are going to generate offers. The three main things to pay attention to in this market are price, staging, and marketing. When so many homes are for sale, you have to make your home stand out in the crowd.
Pricing. The first way that potential buyers will find your house is by doing a search for homes in their price range. They will compare the statistics, location, and appeal of your home based on the bang they get for their dollar. Be sure to research homes that have sold recently and others that are for sale to compare square footage, room sizes, neighborhood, and perks and amenities to see how you compare. This is a price-driven market, so presenting a great value to home shoppers is the first way to get their attention. Sacrificing a few thousand dollars up front may cut your market time in half, which is worth a lot.
Also, if people are looking for a house from $200K to $250K, they won’t find your listing for $199,900. Sometimes you might want to consider rounding the price up to a nice round number that may get your home included in more searches. In this example, a $200K listing will be found by the people looking for $150K to $200K as well as the ones looking for $200K and above.
In any case, make very sure that you are priced right. Basing your price on the realities of today’s competitive market is not always easy, but it is the most important first step toward a successful sale.
Marketing. Only a real estate professional has access to all of the inside channels for marketing a home – and remember, almost all of your competition has enlisted the services of a professional. Making sure your home shows up in all of the databases that people search is vital, and having plenty of professional-quality photos in the listing is key as well. You will also want to have a nice fact sheet with photos, hold open houses, and get the word out to as many real estate agents and home buyers as possible. It takes more than a sign in the yard to sell a home, so make sure you don’t forget about the marketing piece.
Staging. You’ve built a nice fire with the right pricing and strategic marketing, and now the pot is starting to boil. People are coming to look at your house. Their impression of your home is the make-or-break part of their decision-making process. Your real estate agent can show you how to make the house ready for home shoppers.
Less is more, when it comes to staging. Less furniture, less personal memorabilia, less of a “lived-in” look will make the home feel warm and welcoming. Getting them emotionally hooked is a big step in getting an offer.
You should also consider doing some updates and cosmetic improvements that will make your home sparkle, both inside and out. Most people aren’t looking for a home improvement project. Get rid of the wallpaper and the purple paint in the kids’ bedroom and replace it with a warm and neutral paint. A carpet allowance is nice so people can pick out their own new carpeting, but a nice new neutral carpet can be very eye-catching and appealing to people too.
Fix the doors and knobs and screens, and do a little landscaping or painting outside. Depending on the price bracket your home is in, you may even want to redo the bathroom, get new appliances, or even put on a new roof if people are likely to reject the home because of those outdated features. Give people something to fall in love with about your home that will give you a competitive edge.
Buyers
It is still a buyer’s market in real estate these days. There is a huge inventory of homes for sale, lots of bargains and distressed properties to consider, and all-time low interest rates. But, even though the deck is stacked in your favor if you’re a buyer, you still need to take a systematic approach to this major investment. For buyers, success in this market depends on credit, proper budgeting, and rational expectations.
Credit. There may be a lot of homes to choose from, and interest rates may be low; but lending is not as free and easy as it was a few years ago. Banks are shy of risk and are looking for solid buyers with a history of good credit. Get pre-qualified before you shop if you want sellers to take your offer seriously. Pay your bills on time and fix any blemishes on your credit rating before you fall in love with the house of your dreams.
Stay rational. Better yet, don’t let emotions control your home purchase at all. If you let yourself become emotionally attached to a home, you are more likely to over-spend and make a poor financial choice for your family. Remain logical and realistic, and base your purchase on sound economics.
Budgeting. Set a price range based on what you can afford, and remember to factor in your property taxes, insurance, utilities, commute time and expense, and maintenance of the new home. You should become very familiar with your household budget and track all of your expenses for the past several months before you set a budget for a new home. Your household budget and your home-buying budget have to work together.
Try to put together a good down payment, and over-estimate the probable interest rate and property taxes you will have to pay in order to leave yourself a buffer of safety. Then, based on the amount of the loan you will need, you can “reverse engineer” the comfortable price range of your new affordable home.
Whether you are buying or selling, today’s fluid market has plenty of perks and potholes, so plan ahead, make smart decisions, and employ the help of a real estate professional.
Monthly Statistics for the Date Range Selected
Date
|
Units Listed
|
Listed Volume
|
Listed Average
|
Pended
|
Units Sold
|
Sold
Volume
|
Apr 2011
|
979
|
408,720,872
|
417,488
|
359
|
256
|
76,998,116
|
Mar 2011
|
1038
|
400,832,145
|
386,158
|
449
|
329
|
103,255,485
|
Feb 2011
|
699
|
254,540,087
|
364,148
|
314
|
253
|
72,645,309
|
Jan 2011
|
688
|
242,118,486
|
351,916
|
305
|
264
|
81,235,991
|
Dec 2010
|
394
|
136,045,786
|
345,293
|
283
|
362
|
112,038,581
|
Nov 2010
|
521
|
187,893,498
|
360,640
|
329
|
350
|
112,690,821
|
Oct 2010
|
735
|
263,315,137
|
358,251
|
355
|
328
|
105,176,863
|
Sep 2010
|
837
|
318,847,658
|
380,941
|
341
|
399
|
140,820,578
|
Aug 2010
|
865
|
317,330,464
|
366,856
|
379
|
434
|
153,115,696
|
July 2010
|
814
|
303,583,676
|
372,952
|
405
|
431
|
158,459,449
|
June 2010
|
928
|
367,885,352
|
396,428
|
406
|
743
|
257,491,435
|
May 2010
|
908
|
373,257,869
|
411,076
|
390
|
534
|
173,166,612
|
Apr 2010
|
1271
|
530,896,792
|
417,700
|
783
|
535
|
162,658,201
|
Totals:
|
10677
|
4,105,267,822
|
384,496
|
5098
|
5218
|
1,709,753,137
|
Inventory Accumulation for the Last 12 Full Months
Current Inventory *
|
Inventory Volume
|
Current Average
|
Average Monthly Sales**
|
Inventory Accumulation ***
|
4109
|
1,872,145,518
|
455,620
|
382
|
10
|
*Current Inventory is based on the actual available properties on the date this report was created.
**Average Monthly Sales is the average sales for the last 12 full months
***Inventory accumulation (in months) = Current Inventory Units / Average Monthly Sales
Pricing Details of Sold Units for the Date Range Selected
Minimum Prices
|
Maximum Prices
|
Average Prices
|
Original List Price : $49,900
|
Original List Price: $4,395,000
|
Original List Price: $357,691
|
Sold Price : $33,500
|
Sold Price: $3,400,000
|
Sold Price: $327,664
|
Inventory Accumulation figures are only calculated when Report End Month is the current month
Market Statistics Criteria Used
| |
Date Range:
|
4/2010 to 4/2011
|
Price Range:
|
$9,000 to $9,999,000
|
Property Category:
|
Residential
|
Area:
|
All Bucks County
|
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