My New Blog

Lately, I have been seeing the home inspection period being used as a load em up renegotiation of the original purchase price.

Below are some tips to counteract this as a seller:

Get your home pre inspected

Correct any repairs before listing

Price correctly up front and get the most you can in round 1 knowing the inspections are coming

Mentally prepare yourself for this step and know you will be asked for concessions

Disclose any known issues up front in order to keep your buyer from thinking you have been dishonest

Hire a good Realtor that is trained in negotiation and is a full time participant in today's market

House glut? What?  Lately, I have seen very low inventory of good homes available in the West Chester area.  It seems like the news has hit and there are a lot of sellers with good homes that they are sitting on.

I am having trouble finding the good homes.  Inventory is still up but there are a lot of homes that are vacant and outdated. 

This is a positive turn for the market along with national construction numbers coming down.

If you would like to sell and your home is updated and in tip top shape, you will still do well.  In fact, the last homes I have sold averaged 5.3 days on the market.

For more info on real estate and to search listings, go to www.kirksimmon.com

• Location: Churchville
• it's NOT ok to contact this poster with services or other commercial interests

Here we are in the Spring market.  As the weather gets better and baseball Spring training starts, home buyers come out to see what is on the market. Sellers are hopeful and begin to consider what they can get for their homes. 

Some are more hopeful than others and start to price their home at the high end.  They say things such as, "there is nothing on the market" and my flowers and shrubbery are about to bloom.  Puff, puff, puff, the list price goes up.

Soon after they list the showings slow down.  The weather gets better and more neighbors decide to list based on the high price of the first listing.

What happens next is a seller hires me and we discuss the market.  We see recent sold homes, we discuss the price and we go over Bulls eye pricing.  Bulls eye pricing is the best concept in a competitive market.  I have blogged about it before. 

Next thing you know we have 3 listings in the neighborhood sitting and 1 sold.  You guess which one is SOLD!

Call me today if you would like to see SOLD on your house.  I will show you how to get the best of the competition without a fire sale. 

See all my listings and more info at www.kirksimmon.com

My major theory on pricing in this market is called Bulls Eye Pricing.  This isn't my original idea but one I did get from real estate expert David Knox. 

The idea works like this.

The bulls eye is the price and each subsequent ring represent higher prices.  As you move away from the bulls eye the price gets higher.  Each ring lowers your chances of showings and offers.

The trick is knowing where the bulls eye is because it can move.  If a competing home that is similar sells for more or less, that moves the bulls eye.

With a quick changing market in either up or down, the eye moves and it can cost you.  The only thing to do is get it right the first time and peg that sale.

Check out www.kirksimmon.com for more information on me and my services.  When you work with me, I will mark the spot and help you get it right!

$484900 1300 Stuart Drive/ Windsor Ridge

When selling your home you have a bunch of things to do.  One very important one is cleaning out the stuff!  This is frightening to most because nobody likes to go through the closets. 

Much has been said about this issue. However, there is another issue.  What if you don't have much.  Some of us are truly minimalists.  This is a good thing!

Spread out the furniture to encompass the room.  Spread out some things on shelves. Make areas look purposeful.  If you have an empty room with a treadmill, break out your barbells and ad cruncher from the closet and make a gym.  Even if someone might not use the room for that, you have at least made it into something. 

See all the listings at www.ksimmon.mainlinerealty.com

The economic stimulus plan looks like it is making its way through the House again and hopefully will be on the President’s desk soon.

Besides the checks, the big thing is going to be raising the limit for Jumbo Mortgage Loans from 417,000 to 730,000. This is good news for larger borrowers. Jumbo rates will now be conventional in that aspect.

Right now mortgages over 417,000 are about a point higher than those under 417,000.  If you are looking to buy a luxury home, this is going to be a big help to get payments down.

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