Looking for less worry in your 2012 real estate dealings? Here's some advice from the professionals at Kurfiss Sotheby's International Realty whether you are buying or selling a home.


Ask your agent for data. Whether you want to know what homes in your zip code have sold for, or how much they've settled for vs. their list prices, how long they were on the market, what their square footage and finishes are -- ask your realtor for the numbers. They will happily run reports to show you what market conditions are in your area, and perhaps even more helpful, many agents have seen the houses that are competing with yours and are plugged in to deals that are under agreement but not yet closed, which can give you a more up-to-the-minute sense of market activity.

Don't obsess about timing the market. Just as with the stock market, there's only so much analysis you can do to try and buy low and sell high. Right now, everyone knows that home prices are depressed and interest rates are low (and are probably going to remain low for quite some time.) However, the inventory of homes available has fallen, so don't be surprised if home prices stabilize or start a slooooow climb in 2012. The message is: Now is a good time to buy a home, especially if you do not have one to sell. Some homes that are well priced are seeing a lot of activity and multiple bids. If you sit on the sidelines worrying about buying at the most rock-bottom price possible, you may miss out on the home you really want.   

Control your emotions. There are few transitions in life that trigger emotions more than buying or selling a property, especially if the seller is underwater, selling because of a divorce or death or feels bullied by the buyer. Adding to the drama, buyers these days often feel like they have been cut open and dissected by lenders when applying for a mortgage, with loan officers seeking for more and more information. Open lines of communication between agents and clients can be key to remaining calm, finding compromise and keeping a transaction moving forward. Let your agent know how you prefer to communicate, by phone, email, text, or all three. That way you can be the first to know whether there's good news or bad, and all parties can work together to bring a deal to settlement.

 

Today's "Developments" page on The Wall Street Journal Online suggests that there will be no bounce in home prices after they hit bottom. This is certainly true in communities where there is an oversupply of homes for sale or an overhang of foreclosure and short sale properties available. For a local perspective on the market, the Trend MLS data comparing November 2011 against November 2010 for southeastern Pennsylvania and southern New Jersey markets have just been published. Here's a summary provided by Trend:

 

RESIDENTIAL

County	Sold			Average Price			Median Price			Pending
	Nov. '11	Nov. '10	% Chg	Nov. '11	Nov. '10	% Chg	Nov. '11	Nov. '10	% Chg	Nov. '11	Nov. '10	% Chg
Berks	244	226	7.96%	$148,627	$168,022	-11.54%	$141,000	$155,000	-9.03%	241	239	0.84%
Bucks	364	351	3.70%	$303,165	$321,060	-5.57%	$263,000	$280,000	-6.07%	357	333	7.21%
Burlington	256	265	-3.40%	$212,629	$238,283	-10.77%	$200,000	$230,000	-13.04%	255	273	-6.59%
Camden	254	219	15.98%	$170,197	$185,447	-8.22%	$158,000	$170,000	-7.06%	234	219	6.85%
Chester	338	312	8.33%	$349,470	$337,288	3.61%	$312,000	$296,000	5.41%	349	327	6.73%
Delaware	308	290	6.21%	$238,841	$265,517	-10.05%	$193,000	$197,000	-2.03%	312	255	22.35%
Gloucester	152	137	10.95%	$194,480	$207,686	-5.07%	$180,000	$195,000	-7.69%	151	137	10.22%
Kent	101	75	34.67%	$176,980	$203,107	-12.86%	$178,000	$206,000	-13.59%	118	81	45.68%
Mercer	196	197	-0.51%	$319,694	$347,807	-8.08%	$230,000	$255,000	-9.80%	215	191	12.57%
Montgomery	559	493	13.39%	$281,460	$331,647	-15.13%	$249,000	$265,000	-6.04%	511	462	10.61%
New Castle	390	308	26.62%	$198,485	$236,857	-16.20%	$191,000	$210,000	-9.05%	438	316	38.61%
Philadelphia	734	663	10.71%	$180,010	$169,068	6.47%	$124,000	$119,000	4.20%	803	763	5.24%
Salem	26	28	-7.14%	$146,077	$154,536	-5.47%	$150,000	$150,000	0.00%	17	30	-43.33%
Total	3922	3564	10.04%	$233,740	$253,012	-7.62%	$196,000	$210,000	-6.67%	4001	3626	10.34%

 

For an additional perspective on the market, here is a November video market report from Kurfiss Sotheby's International Realty Chairman Donald D. Pearson.

The Philadelphia Inquirer reports that, according to the 2010 census, "in-migration" from New Jersey to Pennsylvania is a burgeoning movement that accounted for 80% of the Keystone State's net gain last year of 25,770 residents from other states. In interviews with demographers, real estate agents, financial planners, and the recently relocated, tax savings, quality-of-life choices, and new commuting patterns emerged as the driving forces behind the influx. In terms of population increases, Pennsylvania is the undisputed leader in the Northeast. All but three states in the region – Pennsylvania, Vermont and New Hampshire – saw more people move out than in. In 2010, Pennsylvania's population was 12,577,555. That year, 235,580 out-of-staters arrived and 209,810 residents moved out, for an in-migration gain of 25,770 - the eighth-largest nationwide. The Pennsylvania counties most benefiting from state-to-state moves are: Pike and Monroe, within commuting distance of the New York metropolitan labor market; Northampton, Bucks, and Lehigh, within proximity to New Jersey's labor market; and York, Adams, and Franklin, within the Baltimore/Hagerstown metropolitan market.

 

If you are a New Jersey resident considering Bucks, Lehigh or Northampton counties for your next home, please call our New Hope office at 215-794-3227, and if the Philadelphia area is beckoning, our associates there would be happy to help you find the right neighborhood. That office number is 215-735-2225.  

This is hot off the desk of our mortgage expert Celeste Spadaccini of Centennial Lending Group: The Federal Housing Administration (FHA) is changing loan limit guidelines to $420,000 for the following counties: Philadelphia, Bucks, Chester, Delaware, Montgomery, Carbon, Lehigh and Northampton!!  As you know, effective October 1^st they lowered the loan limits to $379,250 but have elevated the limits from January 1, 2012 until September 30, 2012.  This is for single family residences only.

If you would like additional information about FHA loans or other types of mortgages, please contact Celeste directly by email or phone: 215.962.7735.

For more information about all things FHA, visit the official U. S. Department of Housing and Urban Development (HUD) web site.

Well-placed, well-managed trees definitely add value to a property, but after last weekend's off-season snowstorm pummeled eastern Pennsylvania and parts of New Jersey, no doubt many homeowners would be happy with open lawns without a tree in sight. The storm certainly heightened many people's awareness of the danger of trees close to roofs and power lines. During the height of the wet snow and wind on Saturday, one needed only to stand outside to hear branches and trees coming down from seemingly all directions. We turned to the International Society of Arboriculture, based in Champaign, Ill., for some tips on managing trees. The organization's web site, treesaregood.org, is an excellent resource to bookmark.

The ISA site offers a tree-hazard checklist for homeowners to use to review the trees on their properties. Home buyers should also refer to such a list as they are looking at potential properties to buy -- the cost of pruning or removing large trees can be a significant expense that many people don't consider as they focus on the condition of the house itself.

If your trees are damaged by storms or by human activity such as construction, the ISA provides some treatment advice on its site. Of course, it's far less risky and expensive to avoid such damage in the first place. 

Is all of this fuss worth it? See for yourself with the ISA's National Tree Benefit Calculator.