My New Blog

With the fed cutting 3/4 point today and markets sinking, do we have an opportunity to make money?  I don't know for sure.  Here is what I do know.  The local economy is still good.  Oil is coming down and most people have lost about 20% in the stock market in the past couple of months. 

Relatively speaking, real estate has been doing well.  Chester County is still vibrant.  Sales are happening at a slower pace but with great deals for the buyer and great rates.  Remember, long term should be the focus when buying your primary residence.  Now is a great time to buy if you don't own.

Could we see a resurgence in real estate this spring?  We will have to see. Tell me what you think? 

1. Selection, selection, selection.
Regardless of price range, there are plenty of houses from which to choose. There's a great selection of attached homes, condos and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. You have many options. When resale inventories are low, buyers are forced to make compromises. Not today.

2. No bidding wars.
In 2005, we knew one family who made offers on 10 homes. They lost the first nine to the feeding frenzy that existed in the market - other buyers bid the properties up substantially from the original listing prices. There were even escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There's no competitive bidding in the buyer's market of today.

3. You can make an offer.
A few years ago when you made an offer, the only question was how high above the list price you should reach in hopes of being the best offer on the table. Today the sell price vs. list price ratio is about 96 percent. Sellers won't be insulted if you "make them an offer they can't refuse."

4. Patience is tolerated.
In the hot seller's market, everything was rushed. You had to find a house before other buyers did, then hurry up and make the offer. Today, buyers can take their time. They can look at several homes and think about their decision for a while.

5. Due diligence is welcomed.
In this market, a buyer is encouraged to obtain a home inspection, termite inspection and appraisal. In 2005, many buyers waived these contingencies in order to gain an advantage.

6. Plenty of specs.
Buyers sometimes had to play games if they wanted a newly built home. There were lotteries and waiting lists. Some buyers even slept in their cars in order to get to the head of the line.

7. Repair requests are accepted.
After buyers complete a home inspection, they're allowed to submit a repair request to the sellers. But in the past, sellers often insisted the home be sold as-is. Many times, there were back-up buyers waiting for the primary buyers to upset the sellers, whose home was increasing in value almost daily.

8. Few, if any investors.
It's estimated that one third of all sales in 2005 were to investors. These buyers caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.

9. Location, location, location.
Today's buyers can find homes closer to work. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines and relatives.

10. Real financing is available.
The "wink, wink" zero-down, no-doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first-time homeowner bond programs, and special loans for teachers or police officers are back in business. The bottom line: It's a great time to buy real estate!

Copyright © 2008 RE/MAX International Inc. 1/22/08

Whether or not you are buying or selling, there is a lot going on.  Right now the seller has a great opportunity to sell and move up!  You always move up in a down market because you are spending more.  (your house is worth 5% less, your next house is worth 5% less but of a bigger number)

Here we are right now in January. Most of us in our back into our groove after the holidays. 

We are approaching the Superbowl and that is the end of the winter doldrums as far as real estate goes.  As soon as that game is over, you need to put your house up.  Of course with a competitive price and in sparkling condition. 

Rates are low, low, low, low.  I repeat, low!  You can get a good 30 year fixed in the 5's right now.  Yes, the 5's!  High 5's but 5's none the less.  The 10 year treasury yield is on the ropes with talk of a national recession.  However, Chester County is still doing great!  Our businesses are still diverse, our location is still great and jobs are relatively easy to find. 

So, what is happening in Chester County?  One of the best opportunities to buy real estate in the last 7 years! 

Call me today for a free analysis of your buying or selling needs.  I will show you how to get the best out of this market!

Visit  www.kirksimmon.com  to sell all listings by any agent or agency!