Brigita's Blog: Brigita McKelvie - Lehigh Valley, PA, Residential, Rural & Horse Properties (Keller Williams Real Estate)

Home sellers have an emotional attachment to their homes, which is understandable.  Some feel their home is worth more than the market value because of all that was put into the home. 

What the home seller must understand is that if they are to sell the home, it must be priced competitively at market value.  Buyers will not look at a home if they are able to find a comparable one for a lower price.  In essence, you are selling your neighbor's home by overpricing yours. 

Here are some tips to help price your home:

Tips for Pricing Your Home

•·          Consider comparables.  What have other homes in your neighborhood sold for recently?  How do they compare to yours in terms of size, upkeep, and amenities?

•·          Consider competition.  How many other houses are for sale in your area?  Are you competing against new homes?

•·          Consider your contingencies.  Do you have special concerns that would affect the price you'll receive?  For example, do you want to be able to move in 4 months?

•·          Get an appraisal.  For a few hundred dollars, a qualified appraiser can give you an estimate of your home's value.  Be sure to ask for a market-value appraisal.  To locate appraisers in your area, contact The Appraisal Institute (www.appraisalinstitute.org) or ask your REALTOR® for some recommendations.

•·          Ask a lender.  Since most buyers will need a mortgage, it's important that a home's sale price be in line with a lender's estimate of its value.

•·          Be accurate.  Studies show that homes priced more than 3 percent over the correct price take longer to sell.

•·          Know what you'll take.  It's critical to know what price you'll accept before beginning a negotiation with a buyer.

Overpriced homes increase the inventory and sit on the market for long periods of time and become "stale".  The buyers now think there is something wrong with the house because it hasn't sold.  Does it make sense to place a home on the market if it isn't going to sell?

Price your home according to market value and your home will sell, not your neighbor's.

Here is what's happening in the Parkland and Northwestern Lehigh Area School Districts in Pennsylvania  for October 2009 in Real Estate:

Recommendation:

If you're buying a home, it is important that you work closely with a highly-motivated agent who understands what's going on with the real estate market and local economy.  He/She will be able to advise you on how to get the most for your money and what homes you may want to avoid, as there are homes on the market that are not priced at their fair market value.

If you're selling your home, it's also important that you work closely with a highly-motivated agent who understands what's going on with the market and local economy.  Your goal is to net top dollar - which you may not achieve if you overprice or underprice your home.

Here is what's happening in the Pen Argyl and Bangor Area School Districts in Pennsylvania for October 2009 in Real Estate:

Recommendation:

If you're buying a home, it is important that you work closely with a highly-motivated agent who understands what's going on with the real estate market and local economy.  He/She will be able to advise you on how to get the most for your money and what homes you may want to avoid, as there are homes on the market that are not priced at their fair market value.

If you're selling your home, it's also important that you work closely with a highly-motivated agent who understands what's going on with the market and local economy.  Your goal is to net top dollar - which you may not achieve if you overprice or underprice your home.

Here is what's happening in the Nazareth Area School District and Northampton Area School District in Pennsylvania for October 2009 in Real Estate:

Recommendation:

If you're buying a home, it is important that you work closely with a highly-motivated agent who understands what's going on with the real estate market and local economy.  He/She will be able to advise you on how to get the most for your money and what homes you may want to avoid, as there are homes on the market that are not priced at their fair market value.

If you're selling your home, it's also important that you work closely with a highly-motivated agent who understands what's going on with the market and local economy.  Your goal is to net top dollar - which you may not achieve if you overprice or underprice your home.

Looking at the Market Update for October 2009, the real estate market seems to be improving in the Lehigh Valley in Pennsylvania.  Here are the statistics:

During October 2009, 537 sales were reported, which is up about 2.1% from September 2009 at 526.

The average sales price for October 2009 decreased about 4% at $190,000 as compared to September 2009 at $198,000.

The median sales price for October 2009 was recorded at $173,000, which is a decrease compared to September 2009 with a median of $177,000.

The average time on the market for properties sold during October 2009 was 78 days, which is an increase compared to September 2009 at 74 days.

Ten new construction properties sold during October 2009, while only 7 sold in September 2009.  The average sales price for newly constructed homes with 4 bedrooms and 2 1/2 baths in October 2009 was $451,000 while in September 2009 the average sales price was recorded at $379,000.  The median sales price for October 2009 for new construction was $410,000 as compared to $356,000 in September 2009.  That's good news for new construction in the Lehigh Valley.

October Sales Distribution

Sale Price                                         Number of Sales
Under $70,000                                           56
$70,001 - $100,000                                    31
$100,001 - $150,000                                 120
$150,001 - $200,000                                 142
$200,001 - $250,000                                  84
$250,001 - $300,000                                  41
$300,001 - $350,000                                  25
$350,001 - $400,000                                  17
$400,001 - $450,000                                   5
$450,001 - $500,000                                   4
$500,001 - $600,000                                   6
$600,001 - $700,000                                   3
$700,001 - $800,000                                   2
$800,001 and above                                    1

YEAR IN REVIEW

Comparison of Activity from October 2008 to October 2009

During October 2009, 537 sales were reported, up about 30% from October 2008 at 413.

The average sales price for October 2009 was recorded at $190,000, down about 10.4% from October 2008 when the average sales price was recorded at $212,000.

The median sales price for October 2009 was recorded at $173,000 which was a decrease compared to October 2008 with a median price of $182,000.

The average time on the market for properties sold during October 2009 was 78 days, an increase from 71 days in October 2008.

The homebuyer tax credit extension has been approved by Congress.  The modifications will be effective when President Obama signs the bill. 

Below you will find the modifications and the changes to the tax credit bill.  This information is hot off the press released by the National Association of REALTORS Government Affairs Division.

THE YANKEES DID IT!! 

27th WORLD SERIES WIN!!

Wow!!  The Phillies put up a good fight and gave it their best, which made the series a really exciting one.  There was never a dull moment in the games.

What better place to win than in your own brand new stadium to end the year. 

That's the way to do it!

GO YANKEES!!!  2009 WORLD SERIES CHAMPS!!!

The senate is expected to vote today or tomorrow on a bill that extends the $8,000 tax credit for first-time homebuyers.

The credit is due to expire on November 30, and would be extended until April 30 and expanded to include more affluent homebuyers. People who have owned a home for at least five years would also be eligible for a $6,500 credit if they move!

This is great news for the real estate market when the bill passes.  The good part is it will include ALL homebuyers.

As I scan the Multiple Listing Service (MLS) on a daily basis, to see what is available for my buyers and to see what listings have expired, I find incomplete and incorrect information.

About half of my clients are looking for horse properties.  When I search for a horse property, I scan under the category of farms.  Did you know that 1 acre is a farm?  I wonder what they are raising on an acre.  Maybe guinea pigs? 

A buyer called me and wanted to see a farm that sounded like a great deal: 14,530 acres for $200,000.  WOW!!  That is a great deal!  Looking up the listing, I find it is located in town.  I don't think there are 14,530 acres available in town.  You think maybe it is 14,530 square feet??

How about properties that are listed with 0 square feet or 0 acres of property.  In all honesty, I haven't seen a house around that has no land whatsoever around it. 

Or how about a description like this:  "Impeccable condition!  Owner sad to leave this house."  This doesn't tell me a thing about the house.  Is there anything in the house?

When I scan through the expired listings, I notice some of the homes that I come across I had buyers that may have had an interest in it.  So why did the listing expire?  It was no where to be found when searched.

I guess there was no interest in selling these listings that have incomplete and incorrect information.  If there was an interest, the information would have been double checked to make sure all was correct and complete so that it can be found. 

So the next time a listing does not sell, it might not be because of price or location.  It could be because no one was able to find it.