Harleysville-Lansdale Real Estate and More

If you live in Towamencin Township, PA and plan to sell your house, be prepared for the Use & Occupancy inspection that is required by the township.

We personally live in Towamencin Township and have sold many homes here over our years in real estate.  The U&O inspection by the township has always been strict and required sellers to make many changes (i.e. installation of GFCI outlets, smoke detectors, handrails, re-routing of sump pump discharges, inspections and certifications of chimney flues, egress from finished basements, etc). 

The problem with the inspection is that the requirements have changed every few years and there has been little consistency in what the township has chosen to look for.  For a while, the township hired an outside engineering firm to conduct the inspections and the action list for each inspection varied depending upon which engineer came out to perform the inspection (one time one of our sellers had to ensure all the bedroom doors closed and locked properly, another time one of our sellers had to install drywall below the stairwell in a finished basement closet for fire separation).

Last fall, the township has once again changed their U&O.  GFCI's, handrails, chimney inspections, and locking bedrooms doors are now out.  These are the new requirements:

1. The seller must personally certify that smoke detectors are in place and operating properly.
2. The seller must pay a Master Plumber to inspect the property and certify that no storm water is entering the public sewer system.
3. The township performs a visual inspection of the curbs and sidewalks.

Number 3 is the big issue now.  The township is requiring complete replacement of any curb or sidewalk that is uneven or has any cracks or chips whatsoever (nevermind that it is the township snow plows that chips everyone's curbs to begin with).  We are seeing it time and again now.  Sidewalks in minor disrepair are being ripped out and replaced.  This is costing sellers in Towamencin Township thousands of dollars.

The worst case of this abuse of township power is a seller that we currently are working with.  This homeowner has blacktop sidewalks and a blacktop driveway all in good condition.  The township "code" says sidewalks and driveway aprons must be concrete.  The township is requiring the replacement of the entire sidewalk and apron.  This is costing our seller ~$4,000 to make this change.  This is a real family with kids in college paying to replace perfectly good sidewalks.

The worst part is that we sold their neighbor's home exactly one year ago with exactly the same blacktop sidewalks and driveway apron and no change was required by the township at that time.

There are several blacktop sidewalks through some communities in the township and throughout some township parks.  When questioned about this inconsistency, the township says those are "paths" not "sidewalks" and therefore perfectly legitimate.  There are brick sidewalks and cracked concrete at the township building - but we suppose that is OK because unfortunately, the township isn't moving.

If you live in Towamencin Township and plan to sell anytime in the future (or your lifetime), we encourage you to contact the Board of Supervisors and express your concerns over the inconsistency in the U&O process.  While it is not affecting you now, what will be the requirements when you decide to make a move?

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Towamencin Township U&O's - Sellers Beware Copyright © 2010, The Scott Loper Team, All rights reserved.

We seem to be hearing it a lot from sellers these days...

"But I've done so much work to this house..." 

This is usually in response to our estimate of the probable selling price of the home as sellers try to convince us to list their home at a higher price.  But sometimes as sellers are proclaiming the level of blood, sweat and tears poured into their homes, we can't help but look around and think, "Really?"

It got us thinking about how people are so different - their tolerance for hard work, their handiness around the house, how meticulous they are in the upkeep of their home, their attention to detail, their ability to do the finishing work, etc.

What may be a simple task for one person can a monumental task for another.

For one seller, it can take an entire weekend to replace a kitchen faucet and a ceiling fan.  A different seller might be able to take wallpaper down in the dining room and repaint it in one weekend.  Another can add a whole new deck in that same weekend.  Another can replace a roof.  Another might be lucky just to scrub down their bathrooms and do some recaulking.  No matter what the project, for all of them, "It was a lot of work."

Routine maintenance and upkeep of a home is expected not necessarily rewarded.  If you lived in a home for ten years and had to replace some deteriorating siding or soffits, you can't expect that to automatically translate into a higher selling price.  If you installed hardwood floors yourself but did a crappy finishing job around the edges, it might actually cost you when you go to sell.

Not all work is created equal and will have the same impact on a seller's bottom line. 

Across the board, this holds true for the weekend warrior, the guy who hires the lowest bidder or the guy who goes "top of the line" contractor and materials for everything they do.

Case In Point - A True Story

I decided last fall to finally do away with the ugly wallpaper in our hall bath.  I will be the first to admit, I am not that handy.  I am better at things like cooking, cleaning, planning, organization, creativity but not so good at household "projects" per say.  Usually we leave those to Scott and I assist with getting him what he needs, keeping him company, holding the light, making sure an awesome dinner awaits him, keeping beer on ice, etc.

Scott wanted no part of this wallpaper removal (it was the kids' bathroom, who cares?) and the only thing he asked was, "Please be careful.  Don't mess up the walls."  Well to make a long story short, it was a horrible, grueling, painstaking task.  The previous owners had glued wallpaper to the walls and ceiling (what idiot puts wallpaper on a ceiling?) with no primer, nothing.  I even developed a little tendinitis in my upper right arm from the continuous overhead scraping motion.  Originally, I thought I would have the wallpaper down within a few days, but it took several weeks.

Then to make matters worse, I trashed the walls in the process.  Scott stepped in and it took him a full weekend to skim coat the walls (suffice it to say, he was not happy about it - I had to be especially nice to him that week).  After the skim coating, I could finally paint the room.  I also tore down the ugly glass shower doors and Scott put up a pretty rod and curtain I had picked out.  My mini bathroom transformation that I started in September was finally done by Christmas.  Ho ho ho!  Hallelujah!

Bottom line:  That bathroom was a lot of work.  It resonates in our minds as our worst house project ever.  But someday when we go to sell our house, will it add to the value of our home?  Not especially.  Buyers these days expect ugly wallpaper to be gone and bathrooms to be pretty colors.  Nobody cares how long it took us or how painful it was to take down the wallpaper. 

P.S.  At the time I started on our bathroom, my good friend Renee started a similar wallpaper removal project in her master bedroom.  She was done well before Halloween.  Such a showoff!

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Not All Work is Created Equal Copyright © 2010, The Scott Loper Team, All rights reserved.

Evidently, a California man purchased a box of glass negatives at a garage sale about ten years ago for $45.  Talk about the phrase, "One man's junk is another man's treasure."  The glass negatives have been deemed to be the work of famous nature photographer Ansel Adams.  The negatives were long thought to be lost during a fire at Adams' studio.  The negatives are considered to be worth approximately $200,000,000!

So if you are selling a home that appears to have a pretty good collection of junk in it, you may want to take a moment to sift through the junk.  You just may find a treasure!

This seems like especially good advice for sellers in our historically rich areas of Montgomery, Bucks, and Philadelphia Counties of Pennsylvania.

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

A Garage Sale Gem - Ansel Adams Glass Negatives Worth $200M Copyright © 2010, The Scott Loper Team, All rights reserved.

If you are getting ready to sell, preparing your home for sale can be a daunting task.  "Everyone" says to neutralize the house, white wash the walls and get rid of your family photos.  In our opinion, that advice is not all that accurate or helpful.  If in any doubt, have a Realtor out to tour your home well ahead of time to make recommendations on where to spend your money, time, and effort to net you the most from the sale.

While neutral fresh paint will dramatically add to the appeal of your home to buyers, we do NOT recommend painting all the walls white.  White walls throughout a home leave the home with a "sterile" feeling.  Neutral colors are actually warm and softer shades of brown, gray, yellow, green and blue.  We don't recommend shades of pink, purple, red or orange as they appeal to a smaller segment of the buyer population. 

If you have an accent wall with a strong or deep color on it; that is okay as long as it works well with the décor of the home.  And even if you do have an entire room that is deep navy blue or crimson red, if it is well done and shows well, you may be better off leaving it be.  This is where the experienced "neutral" eye of a Realtor can help make that decision.

While there are certain aspects of your home that you cannot change for the sale (such as the location, lot size, layout), there are things you can do to maximize your sale price.  While we don't recommend a complete remodeling to sell a home, there are changes/improvements that will be worthwhile and will get your home sold faster and at a higher price. 

We always recommend that sellers take care of repairs before making cosmetic changes.  Neglected repairs are a red flag to buyers that the home is not properly maintained.  What other problems have been ignored?

In addition to fresh paint, buyers respond well to:

1. Carpeting that is new or in excellent condition (also neutral in color)

2. Updated kitchens and bathrooms

3. Sunny rooms with abundant natural light

4. Very clean and uncluttered surfaces

5. Updated systems (HVAC, roof, water heater, kitchen appliances)

6. Cosmetic upgrades (such as granite countertops, ceramic tile floors, freshly painted 6-panel doors with modern hardware)

The items that quickly turn off buyers:

1. Wallpaper (no one wants to have to remove it)

2. Unfinished rooms (especially trim work and spackle/drywall)

3. Odors (especially pet, cooking, or musty odors)

4. Evidence of moisture/water issues in the basement area

5. Evidence of a leaking roof and ceiling stains

6. Old windows

7. Flooring stains and scratches

8. Stains in tubs, sinks and toilets

A strategic investment of $3K to $5K can easily net $5K to $10K or more in the eventual selling price of a home.  Time after time, our experience has been the sellers who go "above and beyond" in preparing a home for sale are the ones who are the happiest with the net proceeds and time on the market.

On the question of family photos, we think some are good.  A home should convey an impression of good memories, security and happiness.  A few photos strategically placed can convey that message and not leave the buyers wondering, "Who the heck lives here?"

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Preparing to Sell Your Home - What is Neutral Paint Anyway? Copyright © 2010, The Scott Loper Team, All rights reserved.

Are you the type of person who cuts their own hair?  If so, then going FSBO (for sale by owner) may be for you.  However, if you give yourself a bad haircut, you can always go to a salon or barber to fix the mess and in the long run, your hair will grow back.  But what happens if you mess up the sale of your house?  Will the money you lost grow back?

National statistics indicate that a FSBO's average selling price is 16% less than transactions using a professional real estate agent and take twice as long to sell.¹  So even if a seller pays a 5-6%² commission, they still may net 10-11% more at the settlement table by using an agent.  Face it, to sell for top dollar requires professional preparation, marketing strategies, experience, and skillful negotiations. 

Plus by using professionals, sellers avoid:

• Buyers who are looking to take advantage of unrepresented sellers, (i.e. It's a big game in the FSBO market.  Buyers want FSBO's to knock some percent off the sales price because they know the seller doesn't have to pay a real estate commission.)
• The self-inflicted pressure sellers feel to lower the asking price by a corresponding percentage, (Why would you ever sell FSBO and knock the commission off the price?  It is crazy but FBSO's do it ALL THE TIME, they take on all the risk and work involved in selling their house but don't end up saving the commission anyway.)
• Entering into agreements where they end up paying a buyer's agent anyway and have no representation, (Most buyers want and need professional Realtors when purchasing a home, especially first time buyers.  So many FSBO's agree to pay a certain percentage to a buyer's agent anyway.  The FSBO ends up unrepresented with an agent who is strictly loyal to the buyer and negotiates the best terms and conditions for the buyer.  All to save a few percent?)
• Making an error in the pricing of the home, (too high and the property won't sell and suffer from market stagnation in the long run - too low and the buyer wins and the seller loses).
• Other pitfalls and unknowns, (i.e. settlement delays, disputes, unqualified buyers, mortgage contingencies, home sale contingencies, resolution of home inspection issues, contract language and timelines, certifications, Use & Occupancy permits.  Realtors don't get paid until a property goes to settlement and FSBO's don't sell their home until they successfully make it to the settlement table.  Is it really worth the risk to go it alone?)

Bottom line:  Good Realtors are worth their commissions.  They can achieve better results than the average seller trying to go it alone.  Plus a good Realtor can make the process as headache-free as possible when sellers have enough stress and other things to worry about.  Sure not all sales with Realtors are perfect or bump-free, but the likelihood of a positive outcome for the seller is far better.  If you really want to go FSBO or cut your own hair, go ahead.  We just don't recommend it.

¹ Data from the National Association of Realtors (Yes, they are on the "side" favoring Realtors but the numbers don't lie and there is no national organization of FSBO's tracking this type of information.  All you hear are the cocktail party stories of the guy with the bad haircut who sold his house himself, saved big (or so he says or actually believes) but might have forgetten to mention a few key details.)

² Real estate commissions are a negotiated item.  The commissions indicated are for example only.  Neither we or any association has set or recommended a specific commission.

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Selling Without a Realtor is Like Cutting Your Own Hair, Copyright © 2010, The Scott Loper Team, All rights reserved.

This past June, I wrote a blog targeted towards home sellers and their Reasons to be Optimistic if You Can Lure First Time Buyers.  Within that post, I pointed out that the current market requires sellers (regardless of which type of buyer they are targeting) to compete more for buyers in three main areas: Location (can’t feasibly change), Condition, and Price.  In this post, I want to specifically address the relationship between Condition and Price with some real life examples.

For these examples, I’m using the five most recent sales (within 6 months) in our local neighborhood of Stonegate.  Stonegate is a beautiful, yet affordable, townhouse community in the Lansdale, PA area.  Its popularity stems from a great combination of features; modern construction and styling, centrally located to job centers and major commuting routes, reasonable price point, low association fees, well kept grounds, close to great schools, shopping, parks – the list goes on.

Here’s a summary of the five sales:

The main features (#bedrooms, #baths, garage, etc) of all these homes are identical.  There are some differences in base square footage between the interior and end-units, but they’re relatively small differences.   Nevertheless, end-units historically sell for higher prices (I would say on the order of $5,000) than comparably appointed interior units.

Having shown four and sold two of the above homes (the exception being Hill Dr), I can speak firsthand about their showing condition.

The Cosmetically Challenged - In the case of Hillcrest Ct, the home showed okay but nothing more than that.  The kitchen and baths were very basic and showed some wear.  The carpets and paint also showed wear and the décor was a hodge-podge in terms of color and style.  Home #2 on Bloomfield Cir was challenging; very basic kitchen and baths, worn carpets, a partially completed/partially demo’d finished basement, a whiff of pet odor, and the décor (nearly 100% pink interior walls).  From what I remember of home #3 on Bloomfield, it was also very basic and worn, but the original hunter green carpets are what really stick in my mind about this one.

The Cosmetically Enhanced - Now for the homes that sold for an average of about $20k more.  I didn’t personally tour Hill Dr, but from the photos it looked quite nice.  The kitchen and baths had some moderate upgrades as did much of the flooring in the home.  It also had a neutral yet warm décor, new carpets in many rooms, crown moulding and chair rail accents, etc.  Valley drive had a similar décor and upgraded flooring (hardwood) in much of the first level.   The kitchen and baths weren’t really upgraded in terms of the cabinetry and counters, but they were in good condition and again had that warm, neutral décor (get the idea here).  Both of the higher priced homes did have nicely finished basements which accounts for some of the price difference, but that’s probably limited to around $5,000-$7,500 on resale for these particular finishing jobs.  I also want to point out that these homes did not have extensive kitchen/bath upgrades; no granite, cherry cabinets, high-end ceramic flooring, etc.  In fact, I believe the kitchen cabinetry material was a very similar oak in all five homes.

In my estimation, the price differences were largely a result of how the homes showed.  And the better showing conditions were really achieved with a few moderate upgrades and attention to cosmetic basics such as carpet and paint.

The points are these:

1)      If you spend a modest amount money (or time and energy) improving the showing condition of your home, you can reap significant benefits when you sell.  Plus, you’ll get to enjoy those improvements up until the time you do sell your home.

2)      If your home is lacking in terms of its showing condition, you need to be realistic about pricing relative to homes that have upgrades or have been recently improved.  You home will still sell even in the current market, but you should be prepared to list at and accept a significantly lower price compared to those “improved” homes.

One other interesting note is that the homes on Bloomfield Circle were both bought by investors as opposed to owner occupants; perhaps suggesting that a seller will alienate much of the larger “owner occupied” market with poor showing condition.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 to buy or sell a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Copyright © 2009, The Scott Loper Team, All rights reserved.  The Condition-Price Conflict.

Here’s some up-to-date information on home sales in Montgomery County PA and neighboring Bucks County.  Like most areas of the nation, our region has seen declines in both the number of homes sold and in their prices.  Thanks to a robust and very diverse local economy, however, we have weathered this correction much better than most by many measures.  For example, our average selling prices year-to-date are down by approximately 10% (8.9% in Montgomery and 11.7% in Bucks) compared to the same period last year.  Not exactly the doom and gloom of some particularly hard hit areas of the country which the media love to emphasize.

Typical of market downturns, the lower price ranges have actually held up the best while the higher prices ranges struggle a bit more.  I believe this is especially the case in our current downturn due to purchase incentives (like the $8,000 tax credit) for first time buyers.  If your home is in a price range that is likely to attract this market segment, there’s reason for optimism.  Consider these facts…

Number of Homes Pended* – January through May, 2009

*Homes Pended is the number of homes listed for sale that went under contract with a buyer.

As you can see, there is significantly more activity in the $201-$300k price range and prospects for a sale can be quite good if your home is in this range or closer to it.  In our area, this is a market segment that is largely comprised of first time buyers.  Between now and December 1^st, 2009, these buyers may be eligible for an $8,000 tax credit if they purchase a home before that deadline.  That incentive along with attractive interest rates and reduced prices has spurred the first timers into action.

If your home is in a higher price range, you should be prepared to compete with more listings and for a smaller pool of buyers.  But even in these higher ranges, there are still active buyers.  More than anytime in the last two decades, your home will now need to compete for these buyers in three main areas: Location, Condition, and Price.  Despite the current market, homes that show well, are priced appropriately, and have good locations will sell (and often within a relatively short time).  If any one of these three factors is sub-par, however, it could lead to an extended time on market and an ultimately lower selling price.  If you have a less than desirable location, be prepared to price the home more aggressively (lower) to generate a sale.  If your home has outdated features or deferred maintenance, be prepared to address those areas (this will typically result in a quicker sale and higher net proceeds even considering the costs of improvements).  Click here for some helpful information about the home selling process and about preparing you home for sale.

Copyright © 2009, The Scott Loper Team, All rights reserved.  Selling a Home in Montgomery County PA – Reasons to be Optimistic if You Can Lure First Time Buyers

What is a Short Sale?

A short sale occurs when the sales price of a property is too low to pay off the mortgage balance(s) and all other necessary selling expenses (closing costs, other liens or judgments, etc). In this case, a lender may agree to accept less than what they are owed to allow the sale to proceed. Although there are exceptions, lenders will usually require some proof of a financial hardship before agreeing to discount the outstanding mortgage balance. There are also many other criteria that lenders consider in the decision to approve a short sale and that approval must be received for a sale to occur. Approvals are usually obtained by communicating and negotiating with a bank's loss mitigation department. If approved, the lender receives the proceeds from the short sale. Although the sellers receive no proceeds, they are usually relieved of at least a sizable portion (and many times all) of the mortgage debt.

What is Foreclosure?

A short sale is not foreclosure. In fact, a short sale is a means to prevent foreclosure. In Pennsylvania, foreclosure is the legal process that banks must follow in order to have a property sold at a Sheriff’s Sale to recoup the debt owed to them by a defaulting borrower. The Sheriff’s sale is the ending event of the foreclosure process and often takes 4 months or more from the initial filing of a foreclosure complaint by the lender. Because of the legal fees, filing fees, Sheriff’s fees, and months of accruing mortgage interest, foreclosure is a very expensive process for the lender. In many cases, a bank would rather take a smaller loss via a short sale rather than risk an even greater loss after foreclosure. This is especially true if a short sale can be completed before foreclosure is initiated and foreclosure costs start to accumulate onto the debt owed to the bank.

If you are a home buyer interested in purchasing short sales, foreclosures, or other distressed properties, click here to search for these specific properties.

If you are facing financial difficulty, would like to avoid foreclosure, and would like to consider a short sale, Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for assistance in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania.