The Timing is The Thing

Happy New Year my friends!

The time has come to put 2009 behind us once and for all, and what a year it's been! Financial tumult and market buckling have continued to haunt many of us and has persisted to dampen consumer confidence. Thankfully the housing stimulus package did well to, well, stimulate housing. Due to its success, it has been not only extended but expanded (see entry below for details). As the economy seems to be stabilizing a bit, with some industries being more or less out of the woods, others bracing for a late hit, now can be a phenomenal time to buy or sell a home in specific price points.

If you're buying your first home, or maybe a second or third move up, you have a great opportunity for savings. Understanding in what form those savings are going to come, though, will make you a more prepared and realistic consumer. Because the market has not hit these sub-$300k properties the way the high dollar values have dropped, and because the stimulus package has brought so much activity to the area, you are simply not going to have much luck with well-below-market offers. We have experienced clients who want to offer 10-20% below asking on homes that are already accurately priced and need few repairs. While the scuttlebutt may lead you to think in a buyers market, anything goes, this simply isn't going to be true.

Consider taking a look at the public records. When did the subject property get purchased by the current owners? How much did they pay, and how long ago? As you will probably observe if they purchased after 2002, their asking price is probably not much more than what they paid. In some cases it will be less. This will significantly impact the negotiating leverage you will have. Remember also that from their "profit" they also must pay their Realtor and yours, as well as transfer tax and possibly repairs (based on a home inspection contingency). The truth is, if you really believe in low-balling because the asking price is out of line, by all means, proceed with swagger. However if you're low-balling only because you've heard from friends or family that you should be able to get whatever you want "in this market" you may want to soften your stance.

How can you get a great deal if you don't get a deeply discounted price?

Location. Consider how accessible the areas are where you may actually WANT to live. In recent years --during the "go-go times" of real estate-- a first time buyer in a sub $200k price range was forced to look in rural areas or poorly ranked school districts. Because of the price adjustments and short sales available, this is no longer true. This is a huge bonus and absolutely cannot be overlooked. I have a client who is purchasing a condo in Unionville-Chadds Ford school district for $125k. Not a typo. That's an amazing investment, and was a full price offer. Sometimes it pays to look at the big picture.

Interest Rate. My generation is somewhat spoiled with interest rates. We weren't old enough to be securing credit lines when things were sky high back in the 80s and early 90s. But money is still very cheap, especially for housing. Even if your credit is less than perfect, if it's good enough to get approved, you're still going to get a relatively good rate. Fill out a pre-approval here to get some ideas of what you're working with: http://larryflick.tridentmortgage.com/apply.cfm Larry and his team will provide prompt feedback and guidance for you first-timers especially if you mention I referred you.

Tax Credit. Maybe it takes hitting hard times for someone to realize that the government does not actually hand out money like it's going out of style. That all the things we hear about public assistance being easy to come by is complete bologna, especially for honest people who don't exploit the system. This housing package is probably one of the only times you and I are going to squeeze a dime out of the government, and I think it would be foolish not to seize that. If they're projecting an end of social security and the US being knocked out of first place as financial super power, this could realistically be the last chance for us to milk the cow. Reach out and start squeezing baby, get that money!

Activity. As a seller this is the single most important aspect of today's market. People are looking, people are buying, people are going to open houses. And if there's one thing I learned from my time in new home sales, it's that activity begets activity. You've never seen people more anxious to put a deposit down on a new home than when there are other families in the model home at the same time. It may be oversimplifying, but this argument is true: No one wants to look like an idiot. We conform so that we have a sense of security that our decisions aren't dumb, because other people are making the same decisions. This is the biggest key to consumer confidence, and will be, in the stable Greater Philadelphia area, the key to re-building the real estate market.

People see their friends looking at new homes, going through the open house listings in the classifieds and they get excited. "Honey, if Jess and Chris can do it, we can do it." The excitement spreads throughout their social network and just like that, Lisa, Sam, Brian and Tim....they're all thinking they can do it, too. This is why you need to get your home listed NOW. You want to catch that building sense of enthusiasm and urgency before some other unforeseen financial hailstorm hits the media and scares everybody right back into their apartments. To understand more about the ebb and flow of consumerism and what drives people to buy, read The Tipping Point by Malcolm Gladwell. The Division President of my former employer recommended it years ago, and I strongly urge all of my associates to check it out. As someone who intrinsically "gets" trends and patterns, it was all second nature to me, but the thoughts were well-constructed and helped me identify certain trending signals I would have once missed.

If you have specific questions about listing your home or buying in this market, I'm happy to answer them. Whether you're ready to make a move now or you're just feeling curious, I never consider client education a waste of my time! sarah.alderman@prufoxroach

NEW!!!! Tax Credit Details!!!

Homebuyer Tax Credit Update!

On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

TAX CREDIT OVERVIEW
Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000 Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?
The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed. According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
They do not use the home as your principal residence.
They sell their home before the end of the year.
They are a nonresident alien.
They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.

Get in touch with me today if you have any questions!!

Thanks Matt, that reminds me: The SSP Factor

SSP. Shameless. Self. Promotion. Hands down the most uncomfortable aspect of real estate for me. For someone as extroverted and seemingly confident as I am, who enjoys public speaking and marketing, you'd think I could self-promote without breaking a sweat. But that's definitely not the case.

As my Facebook friends can attest, I am regularly posting links to my real estate blog, pictures of my listings, status updates mentioning my team. And I feel SOO gross doing it. Seriously I prefer more of a subtle ninja marketing technique. But ninja marketing doesn't work in real estate, and I have kiddos to feed and roots to touch-up. Ain't no time to be a ninja.

When you are an agent, whether it's with Prudential, Keller Williams, Century 21, etc, no one is going to promote YOU -- the individual agent-- except YOU. And you will quickly understand why I spam the shit out of you on the interwebs at every opportunity. Who do you think is gonna send you leads? Your broker of record? Other agents? Santa?

The first obstacle you've gotta tackle is that your friends and family will not think of you as an agent when you first start. They will think of you as their child, a teacher/waiter/IT support tech/scientist....whatever you were before you got into real estate. You might laugh but I'll offer two true stories as proof. My mom's co-worker told her she wanted to sell her house, and asked if she knew a good realtor. She was half-joking...she remembered I was a realtor and was just sorta waiting for my mom to say "Why yes, my daughter is an agent". Instead my mom forgot that her only child, who talks about real estate ad nauseam, was not working for a builder anymore and said no. Her co-worker, perplexed and unsure if maybe she'd misremembered, went home and googled, and found another agent. My mom recounted this story to me still not realizing her mistake. I kept counting to 3, willing my arm to stay glued to my side so as to not, well, bitch-slap my mother. That brain fart just cost me a potential $6,000 commission. Ouch. THEN my step-grandfather decided to sell his house. He had always insisted realtors were "crooks" and he would never ever use one. So imagine my surprise as I drove past his house and saw a Re/Max sign in his front yard. I honestly almost barfed on my steering wheel. My face got hot, I broke out in a cold sweat and I started to cry. I mean really?? My own family didn't even use me to list their home? How humiliating!!! He said he "forgot". He forgot that I had my own real estate team, and I guess forgot that I had been selling houses for four years, and I guess forgot I had two babies to feed all on my own. Hmm. I had to chalk it up to his age, brush it off, and move on undeterred. But it is still awkward whenever I see him.

You can laugh, but all of these things will happen to you when you first get started. You are your own marketing department, PR rep, advertising campaign, etc. What did I have to blame these two mishaps on? I had to blame them on myself for letting my own family forget what it is I do for a living. Go ahead and be embarrassed to self-promote, go ahead and be shy, laid back and all zen about letting it 'come to you'. Perhaps you'll make enough to keep you in the business. Perhaps you won't. But you're definitely not going to have abundance until you get over it and spread the word.

Easy Money? That's news to me.

A lot of people I have met over the years have told me about their plans to enter into the real estate profession after hearing what I do for a living. "It's such easy money" they tell me. I try not to choke, or worse laugh in their face, when I hear this. It's actually sort of adorable. I'm going to turn my pockets inside out for your benefit, so if you are considering getting into the business, wrap your brain around these numbers.

Immediately after getting my license (classes $600 + licensing fee $83 + exam $56) I was hired as a licensed assistant for Re/Max Classic in St. David's. I liked the office because I would be working for someone I knew and it was in an area with high property values. The downside was that I lived about an hour from the office and with no hourly pay, gas money was not instantly reimbursed and Blue Rt traffic was killing me. So I chose to go in another direction, but of course there was lag time in figuring out what direction exactly... so back to bartending for awhile.

After a grueling FOUR interviews, I was hired by a luxury home builder as a Sales Associate. This felt like the brass ring of real estate jobs: a base salary + commission + benefits? Amazing! Prior to signing on I received an offer letter for my base salary (about $30k-ish) and was told that my commission would be "about $10k", but didn't see it in writing. So I had no idea what this meant...did it mean I'd make $10k per house?!?!? Because I would be selling $800k-$1M homes, that didn't seem impossible, but maybe unlikely. Or did they mean $10k total? Just a small difference. I was confused but so excited for the opportunity that I accepted the job. It turned out that they meant about $10k total. (I was promoted to a Sales Manager fairly quickly, about a year and a half later, and the money got a lot better.) Still, very exciting stuff and I would go on to stay there for a few great years, until the twins were about 10 months old.

I started to feel really restricted by having to sit in a model home day in and day out, whether there were any prospects coming in our not. I began to resent that had I sold one of our homes on the other side, as a Realtor, I would be making about $20k/house versus $2k/house....base salary or not. And so as it happens, the grass on the other side started looking pretty green and off I went. Back to being a free agent.

I started at a company I'll call XYZ Realty, just to be fair. I transferred my license ($25) after taking some continuing education ($150), bought business cards ($50 + photographer fee $75) and a for sale sign ($50). I knew I'd be working from home but this particular company required even at-home agents to pay a monthly fee ($55). We also paid for any photocopies we made. I joined Trend MLS so I could publish my listings and search for them (this isn't exactly optional, it's our lifeline...a $226-up-front- $126/year-lifeline).

For the listing I had with XYZ, I had to pay for my own For Sale sign, my own color copies for the brochures I made for prospects ($86 for 20 copies of the brochure), food for the broker's open house ($30), food for the public open house ($30). For my buyer, my biggest expense was gas. They were looking in Delaware County, about an hour from my house, so the back and forth wasn't as nominal as it might've been if I was working in my area. In the end, my listing was priced too high and didn't sell --but did cost me a couple hundred bucks. My buyer successfully purchased a home in Aston. Out of my $3800 commission I had to pay E & O insurance ($400). So from January-March I grossed $3800 and my net was about $2000 give or take. Yikes. Ultimately, the culture of XYZ as well as the monthly fees/operating expenses were not for me. Next!

I decided on Prudential Fox & Roach, where I am now, after a lot of research on Coldwell Banker, Long and Foster, and Weichert. To be fair, I will say some of my friends in the business have not liked PFR; they've felt it was too corporate and structured. For me, coming from a publicly traded builder, this was music to my ears! For every marketing piece I could need to create there are templates to help, beautiful pieces already made and free for my use, and photocopies are free, too. I have a desk at the office as does my teammate Greg and we do not pay monthly fees. We don't pay for signs. I was able to negotiate some other perks since I have been in the business and have a large Sphere of Influence. Greg is new to real estate, so he has had more out of pocket expenses: business cards, announcements, and a very in-depth training program ($200). I should mention XYZ offered free training, however none of the sessions I attended offered me anything of value. I can see though that a brand new agent probably would benefit, but it was fairly basic stuff. The PFR training is much more in-depth and technical than focused on sales. And in my opinion you can either "sell" or you can't. It's more of a natural gift, not something that can be taught.

As an agent for PFR you are expected to join the National, PA, and Suburban West Realtor Associations. This certifies you to be a certified REALTOR. A REALTOR is a Real Estate Salesperson who has received additional ethics training. To become a REALTOR isn't cheap: $150 application fee + $373 up front, $373/year.

I've been at Prudential since June. I started working with a buyer pretty immediately and their settlement did not occur until September 15th. So from March 28th (buyer at XYZ settles) to Sept 15th (buyer at PFR settles) I made $0, but I spent quite a bit. From my first commission check, I gave my teammate a cut, paid for a new E & O policy ($400...again) and was left with about $1700.

Because I am extremely well-connected and Greg is no wallflower himself, my team will be headed into November with 2 new listings, a possible sale of our Reading listing, 2 investors, a renter and a potential buyer. All of these leads were generated by our friends and my past clients. But for a typical new agent, you will also need to spend some dollars and time prospecting. Flyers, floor time, internet based lead generation, mailing lists, direct mailings...and all of those things cost money.

So. Is there money in real estate? ABSOLUTELY. Lots of it. Is it easy? Not even a little. If you're passionate about people and investments, dislike static environments and predictability, and have about $15k-30k at your disposal I fully encourage you to go for it. And although I have my own opinions about most of the companies out there I will never, ever try to recruit and will offer as unbiased an opinion as possible.

Keep the faith, if you're already in it right now. As my buddy Dave Hopkins says, good things happen to good people who work hard. Simple advice really, but it's gotten me through some very lean times and on my way to the f-a-t.

Grab that cash with both hands and make a stash.

A word on finances as a homeowner

DON'T take out a home equity loan unless you plan on staying in your home for 5-10 years with no chance of relocation
DON'T use a home equity loan for anything that won't increase the value of your home (furniture, wedding, car, vacation)
DON'T gloss over the financing terms of your mortgage simply because you're excited to own a home; that home will quickly own YOU.
DON'T forget how many items you will need to make the house a home...avoid being 'house poor'

DO act now if you want to be eligible for the $8000 first time home buyers tax credit
DO remember why homeownership is made out to be such a big deal-- because it IS. If you have one month's pay in savings and credit card debt equal to or in excess of that amount, you're not ready to buy. Just because you CAN get a mortgage doesn't mean you SHOULD.

Investing in homeownership is just that: making an investment. As such it takes preparation, research, dedication, and resources to make it work. If you have specific questions about your finances with regards to purchasing a home, please let me help! All inquiries are confidential and I always have time to help a friend. sarah.alderman@prufoxroach.com

Turnin' Down the House

Buyers, this little nugget of wisdom is for you as well as your agent. Did you know that for every property you see, your agent will be expected to provide feedback to the listing agent in the areas of price, appearance, and your interest level? Although your agent uses your reaction to the home as the basis for their feedback they often input their own opinion as well. This feedback is invaluable for the sellers of the home. It can affect their willingness to reduce price, to make repairs, or simply rearrange some furniture. But let us remember the Golden Rule when giving feedback: Do unto others as you would have them do unto you. A.K.A. put down the Hater-ade before providing your feedback.

First, it can be very frustrating when your realtor says: "Price- Good, Home Showed- Excellent, Client Interested?- No"...and that's it. What is it you didn't like about the home? Was it the size, location, feng shui, building materials? Was it just a matter of taste?

Second, and exponentially more frustrating, is the feedback that seems to scream "the person who completed this feedback form is having the worst day ever". The buyer is not interested, because of a large element-- let's say they wanted a bigger yard. Then it would seem a bit unnecessary to go on and on about all of the perceived shortcomings of the home. "Paint colors are tacky, strange layout, floors should be refinished, unusual landscaping." Now see...them there fightin words. Don't forget what a tremendous amount of emotion the sellers have tied into their home. This is the place they scrounged every dime they could find to buy, and spent years pouring bits of themselves into. They picked that paint color together...as a matter of fact that is the first thing they ever bought for their home as a married couple. They've raised their children there and taught them about gardening. So what if the result looks a bit 'unusual'? You're just going to tear it up to build a deck anyway! When you and your buyers agent are walking through the home alone, certainly be as candid as you like. But when providing feedback, be as gracious as possible while still giving an honest explanation of your level of interest. There's no need to gloss over huge defects, but if it's clearly a matter of taste, just let it go.

The other thing you want to steer away from is letting your agent giving the seller's agent a diluted impression of your intent to purchase. Until you are pretty sure you're going to write an offer, be sure your agent isn't giving the green light to the sellers. This will ultimately get everyone's hopes up for nothing.

I had an agent schedule an appointment for one of my listings late one evening. In her appointment remarks, which went to my sellers as well as myself, she said "Buyers are anxious to purchase this home!!". Naturally we were all jumping up and down and basically staring at the fax machine all day waiting for the offer to come in. After two unreturned calls, hours later, I was able to reach the buyer's agent at home. "They didn't like it. It was really much too small. And they thought it the lights were strange. And the yard was......"(by now she's sounding like Charlie Brown's teacher, drowned out by the sound of my high hopes deflating). I was dumbstruck. How anyone could be so insistent that this was their clients' dream home only to be blowing smoke. In the words of Full House's own Stephanie Tanner, how rude!

So remember and please remind your agents that the feedback you give them in private should be filtered and passed on appropriately. That rejection stings enough and there is no need to add extra barbs. And that somebody actually really loves that "funky layout", and someone else will, too.

It only takes one!

Open up!

Today is one of those quintessential September days here in the Delaware Valley when you can smell the excitement of Fall in the autumn air. People everywhere are gearing up for the first day of E-A-G-L-E-S madness, flanked by a Phillies double header. Non-sports fans may be switching out their summer and fall wardrobes, doing home improvement projects to prepare for the winter months, or enjoying the sunshine by spending the day outside. As an agent hosting an Open House today, I'm hoping at least ONE person is also shopping for a home, making the most of the crunch time between now and the deadline to qualify for the First Time Buyers Tax Credit. And I'm hoping I have reached that person with my internet ads, signage, and let us not forget, balloons.

So....do Open Houses sell houses? The resounding answer is "they can't hurt". Convincing, huh? So you may ask "Are they worth it?". This is how the magic happens:

1. Nosey Neighbors

The first question every neighbor has when they see that For Sale sign pop up in your yard is "how much are you asking?". They instantly start comparing their property to yours, trying to imagine what features you've got that they don't and vice versa. So the moment they know they have opportunity to be unabashedly nosey-- a la the public open house-- they are in like Flynn. How's that going to help you sell? They're going to tell their friends about it. Their friends that may have always loved your neighborhood but never had a chance to buy. They're going to tell their co-workers, their fellow parishioners, their relatives. That's our hope, at least.

2. Destiny drives by...........

The signs, the balloons, maybe some flags thrown in there. All part of the sticky web we Realtors weave to draw the unsuspecting prospect to your home. More than any other media, signs are the biggest draw when selling a house, whether it be new construction or resale. If you put a balloon on it, they will come. You never know who could be driving around aimlessly and be sucked in by your jewel-box of a home and it's amazing curb appeal.

3. Real Estate agents doing their homework

If I'm listing a home for sale, I like to take the week before to preview the other homes for sale in the area. There's no better way to do this than to attend an open house. The seller isn't inconvenienced by my appointment with the hopes that the showing will result in a sale, and the listing agent is available to answer all of my questions face to face. And guess what will happen if I like it? My big, Realtor mouth will gab about it to all my other connected real estate friends, and pretty soon that buzz is going to generate at least one showing for you. And one showing is all it takes to make a sale.

Coming from a new construction background, I entertained people traipsing through my model home every weekend, usually just for shits & giggles and often for the free cookies. I know that very often having an open house is something I'm doing primarily to give my sellers peace of mind. After all, if the price isn't right and the location isn't right, even weekly open houses aren't going to help. But the possibility of finding a buyer with a little bit of meeting & greeting, and of course those balloons-- well that is priceless.

$124,500. Buy it.

Putting the "F" in FHA

I know FHA loans have many redeeming qualities.
I know the headache I'm experiencing is from the back and forth with the seller, not necessarily because of the loan.
I knew to be prepared for potential hiccups even after home inspections, until the appraisal was done.

But. At the end of this deal, I am going to know that I earned each and EVERY penny of this commission!! And thanks to the FHA my buyer will have a nice, dry, water tight basement and not a hint of peeling paint in the joint.

Weeping for Willow

How do you get over the one that got away? How do you get past having lost an opportunity because you simply didn't move fast enough, when it seemed you had all the time in the world? The same way you get over a relationship: time, putting yourself out there again and again, and tequila.

After the cream puff on Willow Rd slipped through my buyer's fingertips, even I went through a bit of mourning. After all, from the moment my heels clicked across the ceramic tile floors I wanted to move my things in and start painting. I could see my buyer's family growing in this house, could see them laughing in the bedrooms, cooking dinner together in the kitchen, playing with the dogs in the backyard. Now it was time to go back to pounding the pavements.

We viewed one property in Rox-a-roni (aka hilly, silly Roxborough) and I was happy to leave the borough quickly...if you could see my suburban ass trying to navigate the should-be-one-way-but-aren't streets, you'd understand. The Rox property was perfect for a single young professional. If anyone's interested let me know, we can check it out. Super pricey paver patio, nice layout, neat details, quiet street,

Anyway after I managed to not sideswipe any parked cars on my way out of Roxborough, we headed to Wallingford. The first home we saw ("distinctive", so said the flyer) was a duplex with a great backyard. The sellers had so graciously left every light on in the home, as if to demonstrate the place was so affordable you could just run up the utility bills with blatant disregard. They also left the stereo on for us, and there was a car in the driveway. I was half-expecting to startle someone as they emerged from the shower, having forgotten they had a showing scheduled. And yet, we were alone. Ultimately the home fell short when it came to the basement ceiling height, but could have been good nonetheless.

Then we have 211 Ash Street, which my buyer has nicknamed Ass St. Ass St. is one block over from the beloved Willow, and has the same street number but pales in comparison. Hence the new moniker. The overgrown roses on the bush out front are a cheerful yellow. So is the siding. So are the awnings. That much cheerfulness just seems, IDK, a little too much? Just a lil. I think the faux-wood contact paper covered tiles in the bedroom did it for me, but it was fun playing bus stop/train station/telephone booth in the oddly constructed back porch area. I wish I'd had my roller skates, because this home took me right back to 1989, being a little girl bored at my grandmom's house, skating back and forth on the walkway through her rowhome's backyard. Well...at least it gets point for nostalgia.

For all my skillful maneuvering through the snaky hills of Manayunk, it was backing out of this driveway that I clipped my passenger side mirror. I almost had a heart attack!! Do you know how much it costs to replace electronic side view mirrors with integrated turn signals? It ain't cheap! Luckily a few minor scratches were the extent of the damage and we were on our way.

Treating my clients to only the best is important to me. That's why when we hit up the drive through at McD's for tap water and a meatless cheeseburger, I made sure I took care of the $6 bill. I don't want other agents to be intimidated by my red-carpet service so keep that on the low....

I became so preoccupied with my crispy chicken ranch snack wrap that I took a wrong turn and we ended up on the main drag of Brookhaven. I remembered an awesome home I had shown there months ago, and surprisingly enough there was still a for sale sign in the yard. Oh my gosh! Could this be a sign? Could this be the one? We made a bold move...we pulled into the driveway with no appointment, prepared to knock on destiny's door. The homeowners pulled in seconds after us, creating an awkward parking scenario on top of the already ballsy ambush. Sadly, the home had sold and they just hadn't gotten around to removing the for sale sign. BUT it was worth a shot and good for a little rush.

We're back at it in a few nights. Hopefully we'll find a spot so great that they'll be thinking Willow Schmillow. For now, I'm listening to 'Weeping Willow' by the Verve on repeat and eating my feelings via Ben & Jerry's, hoping their offer falls through after the home inspection. I just can't believe it's over, waaaaaa!!!!

The delicate art of getting what you want for what you can afford

It doesn't have to be this way!! Later tonight (or as Matt would point out, days and days later) I will explain how to prioritize your wish list to get the biggest bang for your buck.

AND WE'RE BACK.......

The key to compromising without feeling like you're giving up on your dreams is simple in theory, but can be overwhelming in application. P-r-i-o-r-i-t-i-z-e. It sounds almost elementary. But anyone who's ever been forced to "settle" will tell you it's not easy when you're in it, especially when "it" is a home buying decision.

Priority numero uno: Location
Anyone who knows the first bit about real estate knows that location is paramount. Location is what gives value to the land. It determines school district, proximity to public transportation, playgrounds, cultural institutions, and the overall structure of the community. This should be one of the clearest decisions to make. If you had to choose between a home with all of the interior features of your dreams in Affordable Valley or maybe move into a home with yellow shag carpeting to get you into Prestigious Place, which would you choose? Folks, you can change the carpet but you can never (realistically) pick the home up and move it. Will you be forever embarrassed to say you live in the 19555 zip code? Or would you rather live in a more affordable zip but have a hot tub and finished basement to entertain your friends in?

Priority number two: Lifestyle
I hate to speak in generalities but if you drive through my community I feel it's evident than the majority of homeowners have financially stretched to get into their homes. How can I tell? Well for one there have been an underwhelming number of improvements made to the houses. Some additions put on here and there, some new shutters, pressure treated lumber decks, minimal landscaping. But nobody's added a pool, or a paver driveway, or an in-law suite...because these folks bought the most house they could comfortably afford. There are also the homes that haven't even been maintained at the average level: mildew on the siding, stained roof shingles, no landscaping or curb appeal. Those folks are obviously living beyond their means (or perhaps just have no pride of ownership, who knows).

Think about the life you want to live. Is spending every expendable penny to get more square footage the route you want to take? Or would you prefer to sacrifice granite counter tops and hardwood floors for the immediate future to know you will have a slush fund for vacations and shopping trips, mulch and flower bed installations, curtains and mattresses? No one can answer that question but you, however it can be a difficult question to answer truthfully when weighing such a life-changing purchasing decision. A third party or your Realtor can be a great sounding board to help you see things more clearly.

This goes back to Location a bit, but think about the impact the home's geography will have on your lifestyle: would it mean a long drive vs. railways access; if specialty food markets and dining/nightlife are important to you, do the areas in questions both offer the same number of possibilities; are the places of worship and cultural institutions you're accustomed to convenient or even accessible; will the new home require you to switch doctors, dentists and hair stylists? If so are you willing to make those changes?

Trois. That certain je ne sais quois....
Ladies you'll feel me on this....Wedding dress shopping. Picture this-- every dress you try on is one of a kind. Impossible to be duplicated. Once someone buys it, it's gone, not an option, you won't be getting it. You're in that fitting room, and you slip into a dress that instantly brings tears to your eyes. The one. Crazy.... the skirt isn't the style you had pictured, the neckline is completely opposite of what you've always wanted and yet, there is a certain intangible quality that makes this dress perfect. What would you do? You'd buy the dress, no questions asked, right? Because you know you will never be able to find that dress again if it's bought out from under you.

That's real estate. If you find a home that appeals to you in this manner, regardless of whether it meets every tic on your checklist of must-haves, you owe it to yourself to go with your gut. You can not put a dollar amount on the value of that emotional response, of walking into a stranger's house and feeling suddenly as though you've found your home. Until Zillow.com offers a search criterion for "That certain je ne sais quois" it will be difficult to find another place that makes you feel that way.

And buyer beware if you pass it up for no reason other than feeling like you SHOULD shop around. Because there is another bride just waiting to walk down the aisle in your hous-, er, dress. While throwin 'bows might help you win back a dress from the enemy bride, it isn't going to help wrestle the sales agreement out of the seller's hands so you can get your offer in.

When a house feels like home, it probably is.

Finalmente, numero quatro: Total cost of living
Equal list prices making it even harder to decide between two homes? Look past this apparent bottom line to the cost of living:
Heating and cooling- system type? windows new or old? any two story spaces? any large unfinished spaces to take into account?
Water- public or well?
Waste- sewage or septic?
Taxes- school, real estate, city wage?
Commuting costs- tolls? gas? train?
Homeowner's association or condo fee?
Exterior maintenance- large yard to maintain, need new riding mower?

If you are struggling with a unique purchasing dilemma that I haven't touched on, I'm happy to offer individualized consultation.

EL FIN.

If by short sale you mean looooooooooooong sale...

Let's get educated on today's hottest real estate buzzwords: Short Sale.

What it means for a seller. A short sale occurs when the total liens against the home (mortgage, 2nd mortgage, home equity loans) exceed the final sales price of the home. Kind of like being "upside down" on a car loan-- you want to sell your '05 Mazda, but you owe more on it than you can get. In the case of a short sale, the seller is requesting that the lender(s) take less than what they're owed, because they lack the funds to make up the difference. Why would a lein holder accept less? Well, it's a hell of a more attractive proposition for them than a foreclosure. It will have an impact on the borrower's credit, however the credit reporting bureaus are characteristically vague on what specific impact it will carry.

For a buyer, the term "short sale" could not carry a more contradictory implication. Short sales can actually take quite a long time to get to settlement. This occurs as the lender(s) mull over the offer before them, evaluate the impact acceptance of the offer will have on their institution, and continue to seek other (re: higher) offers. A short sale can take 30-120 days to clear lender approval. In a typical environment, this may not be a huge problem. Unless it's a relocation scenario, typically the buyer has a place to live for that duration of time, and though they may be antsy to get into their new digs, it's not a desperate situation. However with the clock ticking on the First Time Home Buyer's tax credit, there is a new objection to overcome in the short sale market. In order to be eligible for the +/-$8000 credit, settlement must occur prior to December 1. So if you write an offer today, August 17, on a short sale, you should be able to get in under the wire....but you may not.

That's not to say a short sale should be avoided. There are distinct advantages to purchasing a short sale. Since the seller's agenda and emotions have been largely removed from the decision to accept an offer or not, there is sometimes an opportunity to get the home for a lower price than you may have been able to otherwise. To the contrary if the seller is on the edge of a potential short sale and wants to avoid it in favor of settling quickly, there may be little to no room for negotiating on price.

As usual, the best route is to consult a Realtor to assist in determining what is best for your unique situation.

20,20,24 hours to go; I need to be sedated.

This is it: the last day of our contingency period for the Phoenixville sale scheduled for settlement Sept 15. What an emotional time for the buyer and seller! The seller is anxious to see what will be uncovered, feeling surprisingly exposed to the scrutiny of inspectors and contractors, not to mention the buyer and their agent and sometimes the buyer's family. The buyer's similarly wary, but with an element of pitched excitement. Trying not to get ahead of themselves until the keys are in their hand while simultaneously wanting to dance with elation that they've found their home...but what will the inspector find in their home?!

Then there's the agent (me) who is as emotionally vested in the process as both purchaser and seller and has a paycheck riding on the whole affair. What will the inspection uncover, how will further negotiating be received, will the contractor PLEASE hurry up and get us the estimate in writing before I have a coronary?!?!?! Etcetera.

It is a new day in the lending market, so I would be remiss to insinuate all stress is relieved after inspections and home sale contingencies are met. In this environment there is always a chance that loan programs could disappear between signing and closing, for the lender to go belly up, for the home not to appraise. But at the close of business today there will be one less bullet point on the "Things I Have No Control Over But Can't Stop Dwelling On" list.

Now, we just wait for seller's reply. Please put five more days on the clock. Tick. Tock. Tick.......

UPDATE: Proposal accepted!! Next step, appraisal.

Buyer Tour du Jour: San Francisco hills, Ghost Hunters night vision foreclosure, and a family we'll see on Intervention or Obsessed

House #1, Mt. Airy, Condo: Great style but super small, instant veto. I got to drive through Chestnut Hill on the way and I must say, I haven't been there since I was a kid and taking a look through adult eyes I see the appeal. As a matter of fact, I liked it so much that I'm adding it to the list of places I'd like to move to myself. Right below Doe Run but above Wallingford-Swarthmore. (No. There are no commonalities between the three, I'm just all over the place.)

Houses #2-5, Roxborough
#2- We arrive and the sellers greet us at the door. This is such a Gilbert Grape house. As in, a family with a very high level of dysfunction, so high a level in fact that the home has fallen into utter neglect right beneath their noses, seemingly unnoticed by the residents. They were kind enough to clear a walkway through their hoarder cattle-chutes, and the piles we were seeing were AFTER the UHaul had come. I'd venture to say things had been even worse before the truck got packed up. Someone had been smoking with all the windows shut for years. Delish. The appointment was scheduled for a 30 minute time slot. We lasted 30 seconds. See ya!

#3- Josephine and Harold Elderpeople had a lovely row home where time had stood still through many decorating trends. Interestingly enough, they had a glittery disco-ball style switchplate in the dining room, right next to the obligatory Last Supper painting hanging above the sideboard. Bert & Ernie twin beds pushed next to one another in the master, Mr. Elderpeople's pajamas laid out for the night. Crocheted tissue box covers. Lovin it. What? Why yes there was powder blue tile in the bathroom. How did you know?

#4- Do you smell the rice-a-roni? Because according to these hills, this is the San Fran section of Roxborough. Country bumpkin, distance-running Sarah deduces the next showing is "right around the corner" because I have no concept of how many feet are in an hour of walking and my Blackberry map makes it look super close. So with three dogs in tow, we go up and down, up and down, the neighborhood changing dramatically with each peak and valley. Thankfully after all the exertion this house gets the highest rating of the night, a 6 out of 10. No grass in the backyard but a nice first floor. The neighbor sends us the stink eye, but we kinda deserved it. If you're walking down Pechin Street in the Rox and you have three dogs with you and a Nalgene water bottle, and those dogs need a drink, here's what you don't do, apparently:
a) you don't dip the bottle into the neighbor's (above ground) pool (in their front yard) because they'll think you're tampering with their (chlorinated) water.
b) do not, I repeat, do NOT ask the blonde at Rich's water ice to fill the Nalgene bottle with tap water. It will just confuse her. They have tap water policies at Rich's Water Ice.

.........Creamsicle flavored water ice break........more walking..........

#5- We're now almost an hour late for this appointment due to the Breast Cancer 3-Day Walk I just led us on, but the property is vacant so I have the agent's okay to show whenever. Well. It wouldn't have killed him to mention utilities are not running. We enter this amazing old building through the 'gorilla cage' of a front porch, after some lengthy admiration of the grapevines growing there, to discover we'll be touring this home by the light of our cell phones. It's pitch black outside, and pitch blacker inside. It looks like we're filming an episode of Ghost Hunters. I keep expecting a ghost or squatter or for some reason a menacing pirate (?) to step out of the shadows and into the greenish light cast by my Blackberry. While I'm busy admiring the backyard with buyer 1, buyer 2 shines his light upwards and voila-- we realize the kitchen ceiling is falling in and there is mold EVERYwhere. Buyers 1 & 2 freak out and rush to leave; I in turn freak out because I'm terrified of the dark and have been left to fend for myself against the squatters/ghosts/pirates. It totally sucks. If it weren't for the hundreds of thousands of dollars worth of work this place needs to be livable, it coulda been the one.

In conclusion, no winners tonight but progress comes from the misses as much as the hits. I'm starting to question my personal life as I found this to be one of the most enjoyable Friday nights I've had in a long time. Anyone free next week?

It's like a bad Chumbawumba song.

I get knocked down
But I get up again
No you're never gonna keep me down

Having a background in food service and bartending, I made an analogy for Greg (my teammate) about people's perceptions of Realtors and how we're paid. It's just like when you're a waiter or waitress: unless your customer has walked in those shoes, they don't get how it works. They don't get that you are making $2.83/hour ($0 after taxes) and that you're at the mercy of their tips for survival. And sometimes, frankly, they don't care.

Being a new agent is, well, a financial feat. Did you know that your agent is paid $0/hour and receives no health insurance benefits from their employer? That all the reports he or she has poured over to prepare for your appointments, the childcare accommodations that have been made to get you to your appointments, the gas money spent to get him or her to all ends of the earth for you: that is all 100% absolutely, completely not reimbursed by anyone unless you buy a home. I bet you could never tell by the way your realtor (if you've picked a good one) is ready to go at it day after day with a huge smile plastered on their face, as if their pockets were lined so fat they didn't care if they ever got paid.

It's hard out here for a pimp, riding a rollercoaster of emotion almost everyday. This morning I was whistling and practically leaping with joy as I walked through the halls of our office. I was writing an offer at 11, we had a buyer tour lined up for this evening. Floor duty (answering the phone at the office = chance to pick up new clients) at 2:30-4:30. It was a day full of promise. So explain what drove Greg and I to heavy drinking this evening? That's the thing...just a few hours can make or break your day, week, or month in this business. The offer was too slow, the buyer tour got cancelled, and no real prospects called in during floor time. Suddenly an 8 hour day had actually cost us money and set us back. Beer me.

Here's what will make or break an agent though: what do you do next? What do you do when you get beaten down? It's easy, as an independent contractor who receives ZERO compensation for going into the office, to say "$!%@ it, I'm staying in my jammies and blogging about Michael Vick all day", pop some Ellio's in the toaster oven and hang out with the dog. You can expect then, with that effort, to continue making $0 gross and net.

The agent who's going to make it is the one who, whether it takes them an after work martini binge or not, wakes up the next morning refreshed and genuinely ready to go at it again. Who gets excited when their phone starts ringing at 7 a.m. Who will meet the clients who have cancelled a zillion times and not hold a grudge, because maybe this is the time we'll find "the one" and there's only one way to find out.

He drinks a whiskey drink
He drinks a vodka drink
He drinks a lager drink
He drinks a cider drink

So you agents that are tuning in, let's all brush off the disappointments of today in favor of the opportunities tomorrow is bringing. If your brain is too cluttered with yesterday's shortcomings, you're gonna miss out on the sale staring you right in the face, or the chance to take floor calls, or you may be too bitter to give that sporadic appointment keeper another chance--the very day they decide to buy. I'm not UNICEF....when I want to do charity work I'll go back to Big Brothers, Big Sisters full time. That's why I'm skipping the Ellio's and PJs and getting geared up for another ride on the 'coaster.

We'll be singing
When we're winning

Apparently I set my DeLorean to 2004, because this can't be the "dead" market of today. Can it??

The first myth I need to dispel is this: the market sucks. False! There is one market that, even amidst dismal news of the national housing market at large, is booming. You got it-- the FIRST TIME HOME BUYER market. If you're looking at a home in the Greater Philadelphia area for under $250k, here are some further myths I'd like to dispel.

1) We can take our time, the market's dead.

Tell this to my buyer who, just this morning, lost a condo in Willistown because we sat down to write the offer at 11 a.m. only to discover the seller accepted an offer at dawn. What could we have done faster? We saw the property for the first time last night at 5 but the third buyer couldn't accompany, so we scheduled a second showing for the next day. Less than 24 hours of consideration and still we didn't move quickly enough. Then take into account a client in Kimberton who on four separate occasions had decided to write an offer...the same 4 days 4 other buyers decided to do the same, most only hours before us. Because of the climate that's been created for sellers, many listing agents seem to be shying away from entering multiple offer scenarios and sellers are taking their first offer, so long as it's marginally sound. Wow. Which brings me to my next myth busta'....

2) We've got 'em by the balls. I want to bid $70k under asking on this $180,000 single family home.

Sellers are very aware that to be positioned to attract the most showings and sell within a decent time frame they need to be priced correctly. I'm finding many properties currently listed in the $250k and below category are priced to move quickly. Much like buyers, sellers want to take advantage of the $8000 FTHO tax credit (settlement must occur prior to December 1) so they are not wasting time with a "high apple pie in the sky" opening price. Where you can probably roll up to a $2.6M estate in Villanova that's been on the market for 456 days and find a lot more room for negotiation, the leveraging position to take a seller over your lap just may not be there in the lower price points.

So can it hurt to lowball? In the case of my above example, had we been able to present our offer, yes, it could have definitely hurt our chances of reaching a deal. Depending on the other contingencies in the agreement, the sellers may not have even LOOKED at our 85%-of-asking-offer for more than a second before tossing it. At the end of the day this is your decision to make, and you need to consult your real estate professional instead of just taking my word for it. There are ways to sex up an offer that may fall short on price, but makes up for it in lack of contingencies. God created contingencies to keep Realtors up at night; I'm convinced he's in cahoots with the good people over there at the Ambien factory. Anyway, some extra flexibility in the inspections, settlement dates, and no home to sell are gonna help balance out a low price. Again, talk to a pro (a.k.a. shoot me an e-mail)....every deal is oh so different.

3. No one is getting approved for mortgages right now./Everyone is getting approved for mortgages right now.

The simple truth is this: if you have good credit and adequate money for a down payment and closing costs, you shalt fear not when applying for a loan. If you have horrendous credit and $2000 to your name (and that's before paying rent and Comcast), it's probably not the time to buy. If you've been self-employed for under 2 years and don't have documentation of income as reported to the IRS, it could be a long shot. If you have that documentation but have been, ahem, less than forthcoming about your income, now's not the time to think your "word" is going to be enough to woo the lender. These days proof of income is the thing to have. Remember, once you're pre-approved, you need to make application. Then you need a mortgage commitment. Then you want to be sure the deal is going to make it to settlement before you've sent out the Open House announcements to all your loved ones-- being sure you're financially prepared for this investment can only benefit you. If today isn't the right day, a mortgage lender, financial advisor, and Realtor can help get you ready for tomorrow.

If you're finding it hard to get above the doom and gloom messages so many people are spewing in your direction, but you're ready to get your house on the market, my number one piece of advice would be to find an agent who has energy, spunk and an optimistic outlook. The value those intangible qualities will bring to your selling process is priceless. Professionalism, knowledge, and integrity are qualities none of us forget to look for, but attitude is just as key and will open (or close) many a door.

As the Market Turns: A behind the scenes look at the soap opera that is the real estate biz

The intention behind this blog is manifold. First, my goal as a Realtor is to educate my clients and set their expectations for the buying or selling process. I want them to understand what agents do and how it should be done, why they do things the way they do them, and how they get paid. Second, to be a source of information for those considering finding an agent who may not know what to expect and want the real scoop before they get swept up with someone who may not be a great match for them. Ezra and Skye Kimbertonian may not be too keen on Johnny Bluetooth, showing up at their biodynamic farm in his Hummer, but they may get stuck with him if they sign before they think. And third, for my fellow Realtors out there, because sometimes we see things so crazy and rich, the stories just NEED to be shared.

My humor is dry and sarcastic and is not meant to offend. I strive to be real, unpretentious and relatable, and I hope that will be conveyed in my blog. Mean spirited comments or harmful identifying information will be removed. The purpose is to entertain and educate but not to publicly humiliate. Self deprecation and low blows at the stereotypical realtor? Those fly, so if you can't take the heat get your ass out of the Newly Remodeled State of the Art Kitchen!!