6 Tips for Homebuyers Navigating a Seller’s Market

As a homebuyer, how do you find a home in a seller’s market? I have six tips to help you today.

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Right now, the market conditions are somewhat difficult for buyers, as Bucks County is in a seller’s market. Our market is not as crazy as the market in other counties, but inventory levels are down and some homes are selling with multiple offers.

If you are out there actively looking for a home, here are a few tips to help you navigate the market:

1. Make your initial offer your best offer. This may seem counter-intuitive since buyers had more control in the past few years. It used to be that you could initially offer a lower number with the understanding that you would negotiate with the seller. However, making your first offer your best and highest offer can mean the difference between getting the house you want or not.

2. Don’t overanalyze the purchase price. We are seeing some appreciation in the market, which we haven’t really seen in past years. Prices aren’t wildly escalating, but they are on the rise. So, if a home sells for a certain price in a given neighborhood and you’re looking at a similar home, that seller will probably ask for a little more money than the previous sale. If you are serious about buying, that is something you should expect given current market conditions.

3. Work with an experienced agent. Every agent has to start somewhere, but it can be risky for homebuyers to work with an inexperienced agent in today’s market. Work with an agent who has a good working relationship with other agents in the market. Virtually every other agent in Bucks County knows who I am because I’ve been in real estate for a long time. In a lot of transactions, that really does help. Even in multiple offer situations, my buyer may get picked over the others because I have an established connection with the listing agent.

Your first offer should be your best offer.

4. Get pre-approved before you start looking for homes. Talk to a mortgage lender early on in the process and get pre-approved so that you’re prepared to buy when you find the house you want. It will save you a lot of stress and frustration down the road.

5. Be prepared for a multiple offer situation. Multiple offer situations are not uncommon right now. It doesn’t happen with every house and there are many factors that lead to a multiple offer situation, but know that it’s a possibility. Don’t be shocked if someone else makes an offer on the home you want.

6. Learn from the process. I take a lot of pride in my ability to educate buyers so that they understand exactly what’s happening at every step of the process. Even if you make an offer and don’t get the home, step back and learn from it. Don’t frantically chase after a house that you didn’t get and end up overpaying for it; just learn from the process.

If you are looking to buy in the current market or if you have any other real estate questions, give me a call or send me an email. I would be happy to help you!

Why You Need to Avoid Zillow When Selling in Bucks County

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As a real estate professional, I'm continually bombarded by the question, "Why does Zillow price my home in Bucks County differently?"
If we go on Zillow's website, this is how they explain it: The Zestimate is created by an automatic software process designed by statisticians, and there is no ability for humans to manually alter the Zestimate for a specific property.

To make that more clear, let's say a home is estimated to be worth $500,000. If the Zestimate is off by 10%, that's a difference of $50,000! If the home is under-priced, you're missing out on tens of thousands of dollars. If your home is overpriced by 10%, it will sit on the market for awhile, and you might have to drop the price, causing buyers to wonder what's wrong with the home.

It's been estimated that Zillow's home estimates are only right 7% of the time. That means that they are wrong 93% of the time! That is a terrible success rate.

Remember, Zillow can't take features or upgrades on your property and compare them to other recently closed homes in your area, even though doing so gives you a more updated value on your property. Zillow doesn't walk through your home, and that's where my team can come in and place an accurate value on your home.

Ultimately, if you want the most accurate price for your home, make an appointment with a real estate professional. We will go over your home and the local market data in order to give you the most accurate home value.

If you have any questions, or if you're interested in a home valuation, give us a call or send us an email. We look forward to hearing from you!

What Should You Know About Title Insurance in Bucks County?

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Today I’m with Robin Mancuso DeLuna. She’s the President of Cross Keys Abstract & Assurance, Inc. I’ve done a lot of work with Robin and her team, and I rely on them for their title services. We’re going to learn as much about title insurance as possible.

To start, title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Basically, it ensures that you’re buying the home from the proper owner, and it makes sure that there are no debts or liens against the property. You don’t want someone coming to your home years down the road making a claim to the title of your property.

So, why should a buyer obtain an owner’s policy that’s different from the lender’s policy? The owner’s policy is based off the sale price, and the lender’s policy is based off the loan amount. If you bought a $500,000 home, the owner’s policy would cover you for claims up to that amount. The lender’s policy would cover the amount of your mortgage, or about $250,000. Often times a lender’s policy is required before getting a mortgage.

 

What do you gain by purchasing an enhanced policy? This is something for the owner of the home and usually costs about 10% more, and this covers future issues like zoning or other encumbrances.

The price of title insurance in Pennsylvania is regulated. Many of the fees are regulated, and really the only thing separating Robin from others is her dedication to customer service.

One thing to know is that title claims are rare and they really don’t occur often. However, when they do happen, they can get expensive very quickly and you don’t want to finance your own defense. Robin says that what can make a big difference is the amount of research that the title company goes through. Robin has advised buyers not to purchase homes because of murky claims that could cause trouble down the road.

If you have any questions, please don’t hesitate to contact myself or Robin. We look forward to hearing from you!
 

During Your Final Walkthrough, What Should You Be Looking For?

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I have a lot of home buyers that have the impression that the final walkthrough is a chance to inspect the home one last time. You do have the right to bring the inspector back for the final walkthrough, but it is really meant to verify more trivial things.

One thing that I always ensure when I do a final walkthrough is that the heat or air conditioning is on. I turn on all of the appliances, run the water, and check for other minor issues with the home.

Prior to closing, if you find something wrong that's not consistent with what the home looked like when you made the offer, you have the right to ask the seller to address the issues. Once you sign the papers and the house is yours, the problems with the home become yours.

I've had a situation before where it had rained the night before a final walkthrough. The basement ended up flooding and if we had not done a final walkthrough, we never would have noticed it and the buyer would have had to pay for the repairs.

I know the final walkthrough can be a point in time where you as a buyer might just want the transaction to finally be over with, but be very careful to make sure there are no lingering issues with your home. Once you sign the documents, the home is yours, and so are any problems that come along with it.

If you have any questions about this issue, please don't hesitate to contact me!

Are You at Risk of Losing the Bucks County Home of Your Dreams?

Buying a Bucks County area homes?  Perform a full home search

Selling your Bucks County home? Get a free Home Price Evaluation

Recently, Bucks County has been hot! In fact, there is so much activity right now that we're seeing something we haven't seen in years: multiple offer situations! 

While sellers love receiving multiple offers, these situations can be very stressful for buyers. However, there are strategies that can help you make your offer stand out in a crowded market. Here are some quick tips:

• Don't go crazy: No house is worth overextending yourself for, especially if it's going to put a substantial financial burden on you. 
• Escalation clauses: If you really love the home, you can include an escalation clause in your offer. This clause states that you will pay the amount of any competitive offer plus, say, $1,000 more. There is typically a cap that can be reached in an escalation clause, so you limit the amount of money you'll pay and sacrifice some negotiating leverage. 
• Write a letter to seller: A better option than an escalation clause, or one you can use in tandem with it, is writing a personal letter to the seller. Letting them know how much you like their home and how important it is to you and your family could go a long way toward making your offer look a whole lot more appealing.
• Complete pre-approval: Make sure your mortgage lender is as tight and thorough as possible. This will show the seller you are a serious and qualified buyer. Offering to put a lot of money down up front is also a great way to improve the look of your offer.
• Match seller's conditions: If you can match the seller's preferred closing date and other conditions, you can make your offer look better than the competition without having to offer the highest price. Coordinating conditions with the seller is huge!
• Work with a good agent: If you don't know how to negotiate and read market trends and conditions, you might find yourself missing out on the home of your dreams. In a competitive market like the one we're currently in, working with someone with experience could truly make the difference when trying to secure your dream home!

If you want to learn more about getting your offer accepted, or if you would like to learn more about how our team can help you, give us a call or shoot us a quick email. We would love to hear from you!