Jennifer LeBow

Post-Pandemic Home Buyer Preferences

June 8, 2021 by Jennifer LeBow Leave a Comment

What home buyers wanted during COVID

During COVID, we saw an exodus from large cities and buyers looking for more space, in less expensive areas. The sudden ability (for many) to work remotely had people considering areas that previously were not options. The ability to host extended family and have outdoor entertaining space also became key criteria. Convertible space was also in great demand. Now that the pandemic, at least in the US, is considered “under control”, how are those buyer preferences affected? “Home” has become much more than just a place to sleep for a large portion of the population. Real estate predictions suggest that many of those new found values will remain strong home buyer priorities. In some cases, home remodels or additions may reflect some of these new demands. In others, it may make more sense to move. For more on this topic, click here.

An eye to the future

Now that we know that workplaces, restaurants and entertainment venues are reopening, some buyers are a bit cautious about trading the city for the suburbs. While living in a small space with little or no private outdoor area drove many people to seek a more spread out, suburban lifestyle, some people wonder if that preference will continue. Especially considering the spike in home prices, some people are pausing to consider the long term investment value of a suburban property. Will the trend toward non-city living continue? Or will they soon tire of not being close to dining, shopping, museums, public transportation, etc. and find that they can’t easily sell their suburban homes?

Hybrid work model

While some employers may require a return to work with no flexibility, the expectation is that most will allow some kind of hybrid model. Therefore, a large percentage of people who left cities may never move back. The cost of living is often lower and once you’ve become used to having extra space (guest room, office space, home gym, closet space, etc.), it can be challenging to go back. Even if commuting a day or two a week is necessary, most people are willing to travel further if it’s not everyday. It seems unlikely that we will see a boomerang effect where lots of people move back to large, expensive cities.

Trends to watch

Not everyone moved to suburbia during the pandemic. One trend, which is expected to continue, is a move from expensive large cities to less expensive smaller ones. These cities, for many, proved a perfect fit. They were still cities, with plenty of services and activities but with lower costs of living and somewhat larger homes for the same dollar. We also saw more people make “nearby” moves, within about 150 miles, than major, cross-country moves. Moving nearby is less disruptive as far as culture shock and local friends and family aren’t suddenly hundreds or thousands of miles away. Staying connected (and not only virtually) has emerged as an important consideration in home buying. For more on what to expect, click here.

If you are relocating to the Philadelphia/Main Line area, please go to my blog page and search for posts using the relocation tag. Contact me to discuss your Philadelphia area relocation! jen@jenniferlebow.com/610 308-5973

Concierge Philadelphia Relocation Service

June 1, 2021 by Jennifer LeBow Leave a Comment

Philadelphia area relocation service concierge — If you’re considering a move the Philadelphia/Main Line are, you will need a concierge-level guide.

Relocating to Philadelphia?

If you are considering relocating to the Philadelphia area/Main Line, you’re going to have a lot of questions. You’re certain to do plenty of googling and will find a lot of information. That said, you will have some questions that will remain. Things like “Which neighborhoods would be the best fit for my family?” and “How do I make sense of these school district boundaries?”. In my experience, some of the most important questions will be ones non-locals don’t even know to ask, because they are founded in the idiosyncracies of the region. So what should you do?

Insist on concierge relocation service

Just like the concierge at a fine hotel, a Philadelphia concierge relocation service is your one-stop shop for everything related to your Philadelphia area move. Whether you are looking for help understanding the public transit system or learning which Facebook groups you should join to acclimate more easily to the Main Line, you need a trusted advisor who can help. Of course, many people expect to use their Realtor in this capacity, and I agree that you should start there. If you find your agent is providing you with the concierge service you are looking for, you are ahead of the game.

Identifying a concierge relocation provider

How do you find this elusive service person? You can also google some of the questions you have and see if there is a website/blog that consistently addresses some of your questions and concerns. If you are considering using a Realtor, read that person’s reviews on Zillow, etc. Contact a few agents and note who answers the phone or calls you back quickly. Don’t be shy: explain what you are looking for and evaluate who appears to have the right focus, responsiveness and area knowledge. Ask for referrals from past clients and call them to ask about their experiences moving to Philadelphia or the Main Line. Find out what those people found to be the most useful resources.

Service continues after closing

When you move to a new area, finding a home is the most immediate goal. However, it takes a while to find your way around. You won’t yet have a cadre of service people (who is a great plumber or electrician?) and what about the best orthodontist or veterinarian? Philadelphia is a large metropolitan area with very distinct neighborhoods. Where should you send your daughter for dance class or a great hair cut? You’ll need someone with wide area knowledge that crosses town boundaries in order to have the best breadth of options. Be sure that your relocation concierge service, especially if it is your real estate agent, plans to continue supporting you “after the sale”.

Why you might want to move to Philadelphia’s Main Line

Should you move to the Philadelphia area?

Why move to Philadelphia’s Main Line?

May 23, 2021 by Jennifer LeBow Leave a Comment

relocating to the Main Line — Should I move to Philadelphia’s Main Line?

Moving to the Main Line

This post is a corollary to one I wrote entitled Should I move to Philadelphia? The Main Line is what we call the suburbs immediately to the west of Center City Philadelphia. Therefore many of the advantages of relocating to Philadelphia equally apply to moving to the Main Line. (Lower Merion Township, contained within the Main Line, made Money Magazine’s top 50 Places to Live. In November of 2022 Money named it #2 in the nation for best places to live for people who work remotely.) For example, you will have easy access to the sporting events, arts and entertainment, dining and history of the city. You’ll also benefit from the location between Boston, New York and Washington and the proximity of the beach, Poconos, Lancaster County and more.

Schools

However, there are additional reasons to relocate specifically to the Main Line. High on the list are the excellent schools. Not only are some of the highest rated public schools in the state located in this area, but the number and variety of private school options is impressive. For many relocating families, the ability to have these great school options while still being easily able to commute to Philadelphia is a big draw. To read more about local public and private schools, go to the schools tab at jenniferlebow.com.

Landscape

While many suburbs tout green spaces as a reason to live outside the city, the Main Line offers more than most. While there are lots of parks (from fields and playgrounds to wooded areas, walking trails, arboreta, state parks, etc.), the region is known for its trees. Remember, the Main Line is an old, established community, so mature trees and perennial plantings are the norm. “I love all the trees” is one of the most common exclamations I hear from relocating buyers. This topography allows proximity to a very large city with a distinctly non-urban feel.

Established neighborhoods

Just as the trees and general physical landscape reflect the age of the Main Line, the buildings, too, remind you of its history. This area is the antithesis of cookie cutter developments. While there are some neighborhoods with HOAs comprised of houses that have more a of planned community feel, those are less common and tend to be on the periphery of the Main Line. The organic nature of how the area grew means that there is more variety and individuality to the buildings. When the region was being developed, the rocky soil proved conducive to quarrying and most older structures are built of stone. The traditional, solid stone facades are another local feature of the Main Line that often appeals to relocating buyers.

Lifestyle

While “lifestyle” is a broad term that can be interpreted in many different ways, there are some generally accepted ways to describe a Main Line lifestyle.

Convenience is one of the top reasons given by people who live here. This area is not only convenient to the city, and destinations like NYC and Washington, but also to dining, retail and services. The Main Line is a string of smaller towns that flow into each other fairly seamlessly. As a result, there aren’t long stretches with no commercial offerings. You are never far from a drug store, gas station, bank, salon, coffee shop, etc.).
Safety is another reason people give for choosing to buy homes on the Main Line. While adjacent to a large city, the crime rate is relatively low and people report feeling safe walking in their neighborhoods and being in their homes.
Work-life balance often receives high scores as well. In addition to great schools, proximity to work (often in Center City) and having the indoor and outdoor space Main Line properties offer, there is plenty to do. For people who love the outdoors, there are trails and parks, but also opportunities to kayak or canoe on the Brandywine River and Marsh Creek State Park to name a few. Skiing in the Poconos or heading to the beach are reasonable day trips and there are plenty of events and destinations for the family as well (like the Kennett Square Mushroom Festival, Mercer Museum, Linvilla Orchards, the Chester County Hot Air Balloon Festival.)

No region is a perfect fit for everyone and every place will have its negatives. So, wherever you are considering moving, do your homework and gather as much information as you can. Decide which characteristics are non-negotiable and evaluate your options carefully. For more reasons to move to the Philadelphia metro area, click here and here. If you think that the Philadelphia metro area, specifically the Main Line, might suit you, please give me a call!

Waiving inspections

May 18, 2021 by Jennifer LeBow Leave a Comment

Relocation to Philadelphia's Main Line — In a competitive real estate market, should you waive the home inspections to get the house?

In today’s extremely competitive real estate market, many buyers who are successfully winning bidding wars for houses have opted to waive inspections. Should you or shouldn’t you? There is no easy answer. On one hand, remember that you are buying a used house (like a used car) and you shouldn’t expect every hinge to be tightened and perfect baseboards with no signs of wear. What you should be concerned about are safety issues (like unsafe stairs or a heater that is building up carbon monoxide) or material defects (like a roof that leaks, electrical problems or a leaking plumbing waste pipe).

To state the obvious, there is a substantial risk to buying a house and forgoing the professional home inspection. There are, however, some circumstances in which you might consider it.

If you or someone you know (and can bring through the house) is knowledgeable about construction, systems and other things a home inspector would examine
If the home seller has had a pre-listing inspection report done and is willing to share it. Then you can see what the issues are and what the seller will or won’t address.
If you have the time and receive permission to get an inspector to do an inspection PRIOR to submitting an offer. That way, your offer reflects whatever issues are discovered and you can plan accordingly.
If it’s new construction, in which case you almost always have a year to make a punch list of items for the builder to rectify. You might, in that case, choose to have an inspection done once you’ve moved in, in the event there are things you might not notice.
If you plan on doing a major renovation, in which case you’ll be redoing the roof and electrical, plumbing, etc. Since you’ll be replacing a lot of those systems, their current state is relatively unimportant.
If the risk-reward equation justifies waiving them. If your worst-case scenario of what you could discovered balanced against the possibility of losing the house to a better offer is manageable, you might choose to skip inspections.

The discussion above applies to the traditional home inspection. When it comes to termite inspections, septic, well or stucco inspections, those need to be evaluated individually. Significant termite damage can affect the structural integrity of the house, so you might want to consider inspecting for wood-boring insects. Septic systems can be upwards of $30,000 to replace, so that’s another inspection you should think carefully about before waiving it. Stucco, too, can be a tremendously expensive repair, if it has failed. You may have to replace doors and windows in addition to the stucco, so consider the potential cost of remediation compared with how much you want the house if you are opting out of a stucco inspection.

If you are relocating to the Philadelphia/Main Line area, please go to my blog page and search for posts using the relocation tag

This market is not a bubble

May 8, 2021 by Jennifer LeBow Leave a Comment

When will this bubble burst?

The most common question buyers ask me about the current real estate market is “When is this bubble going to burst?” They want to know when the intense competition for houses and over-asking, non-contingent offers is going to abate. And even though I’m not trying to buy a house at the moment, I can tell you it’s no fun having to call buyers who have put a seriously competitive offer on a house only to tell them that the seller chose another one. We are all wondering how long this situation will continue. The unwelcome news (unless you’re a seller who doesn’t have to buy another property) is: no time soon.

How is it different than last time?

So how is this market different than the one that preceded the 2008 crash? First of all, the factors driving the increase in prices are markedly different. Then, mortgages were so easy to get, you barely had to have an income to qualify. Now, lenders are much stricter about whom they qualify. Even the type of loans are different. Back then, roughly 35% of mortgages were adjustable rate loans. Often, when those rates adjusted, borrowers were ill-prepared for appreciably higher payments and defaulted. Now, less than 2.5% of new mortgages are adjustable.

Why is there no inventory?

Second, and probably most important, there was more inventory then. In 2007, there were plenty of homes available, which negatively affected value and contributed to tumbling prices. We have been experiencing a housing shortage consistently for the last six years or so. New home construction, which has been lagging behind demand for several years, has been incredibly hard hit by COVID. The delay in supply change and labor shortages due to the virus has made the build time almost double. And unless you’ve been living under a rock, you’ve probably heard how building supply costs have skyrocketed during COVID, further reducing the availability of new homes.

Why is there so much demand?

Along with the reduction in supply, we are now seeing increased demand. Now, with incredibly low mortgage rates, people who might not have otherwise been in the market are actively looking for houses. Additionally, the (substantially large) millennial cohort is buying at an earlier age and with more cash in savings. The impact of such a large group entering the market sooner and with more money is significant. Of course, we can’t forget how COVID has spurred an exodus from expensive cities as people no longer have to live where they work. Wanting a lower cost of living, more interior and exterior space, many people are making lifestyle changes beginning with a move. The demand for suburban homes has increased sharply.

Don’t expect a crash

No one can predict with certainty when the market will come back into balance. However, the most basic principles of supply and demand indicate that it won’t be in the immediate future. An analysis of situation and the contributing factors illustrates how different our current market is than just before the crash in 2008. That artificially high market was a bubble and it did, indeed, burst. What we are seeing now, though, is no bubble. In the next couple of years, as supply and demand realign, we should start to see a reduction in the intense level of competition, but it is unlikely prices will fall drastically. For a recap/summary, click here.

Understanding listing prices in this real estate market

March 26, 2021 by Jennifer LeBow Leave a Comment

Main Line relocation home prices — Making sense of today’s list prices isn’t easy. Learn why they are so high and how it affects buying strategy.

High listing prices

If you are shopping for a home today, you’ll notice that the listing prices seem high–that’s because they are. Understand why. It’s the simplest reason: supply and demand. Why the supply is so limited and the demand is so high is beyond the scope of this post but to read more on that, click here as well as here. For statistics on this market, click here.

Should I expect to pay list price?

In most markets, most of the time, sellers list their homes and expect to receive offers slightly below their asking price. Today, unless a property is not attractive to buyers (regardless of the price), that scenario is exceptionally rare. Now, almost every desirable property is purchased at a much higher price. One article suggested that you look at the list price like an auction reserve price: the lowest the seller will go, but not what he expects to get. How high should you go? Click here.

What else besides offer price matters?

In low supply markets today (which is most of the country), the offers sellers are choosing are not only often the highest purchase price, but the ones with the fewest contingencies. People are waiving inspection contingencies. Be aware that choosing to waive inspections may mean that you discover problems once you own the house that require expensive repairs. Many winning offers are also waiving appraisal contingencies.

Why the appraisal is so important

Remember that your lender will only lend a percentage of appraised value. When a property appraises for less than the purchase price, the loan amount decreases. That situation leaves a gap between the amount you were planning to spend as a down payment (for example, 20% of purchase price) and the amount you’ll have to add in to make up for the reduced amount of mortgage money.

While the agreement of sale provides the right for buyers to terminate in the event of a low appraisal (to avoid this potential unpredictable out-of-pocket expense), sellers these days are looking for, and getting, offers that waive this appraisal contingency.

The non-obvious negative of a high offer

Obviously, if you agree to pay above the asking price, you are spending more on your down payment and more on your mortgage than you would have at list price. However, there are significant financial implications beyond that one. Beware the appraisal trap.

Recognize that the appraisal trap issue should be resolved in another few months once properties that are selling now at inflated numbers settle and are recorded. Then those properties will raise the bar as far as appraisal values on new properties. Once the appraisals catch up, there shouldn’t be such a gap between purchase prices and appraised values which means the additional out of pocket cash expense will decrease.

Structure your offer carefully

List prices in many markets are up to 10% higher than they were a year ago, and are selling for higher than list in many cases. If you are considering making an offer on a property at this volatile time, do so from an educated position. If you understand why the prices have increased so steeply (reduced supply and increased demand), you can better predict what kind of offers are winning these properties and use that information to decide upon your own offer strategy.

Jen LeBow’s Candied Nut Recipe

March 8, 2021 by Jennifer LeBow Leave a Comment

Jen LeBow’s Candied Nuts

In a large frying pan, bring to a boil over medium high heat:

½ cup water (or just a tad less)

3/8 cup sugar

Add and stir constantly until water is almost entirely gone (5 minutes):

4 cups pecans/almonds/walnuts

Add and stir about 2 minutes:

1 T cinnamon

½ t salt

Pour out onto large cookie sheet and cool entirely before storing in air-tight container.

Not selling your home? Be prepared, just in case…..

February 15, 2021 by Jennifer LeBow Leave a Comment

selling a house Main Line — Even if you have no intention of selling your house, it’s good to be prepared for the unexpected.

You’re not selling your home

Congratulations! You are happy in your home and not planning on making a move. I don’t blame you; moving can be a hassle. That said, we all know (hello COVID?) that we can’t predict the future and, sometimes, the best laid plans change. As the Boy Scouts say: Be Prepared.

Preparing to sell when you aren’t selling

Obviously, my advice in this circumstance will stick to no-cost or very, very low-cost activities. Outside of the normal maintenance or remodeling you would do for your own benefit, under the assumption of remaining in your home, you don’t want to spend money on an unlikely eventuality of selling. I get it. So what can/should you do?

Take pictures of your yard at its best.

Got a pool? Take pictures of it when it’s open (and clean!) during the warmer months.
If you have any flowering trees, shrubs or perennials, photograph your property when they are in bloom. Be sure to take some shots of what the home looks like from the curb, too. Landscaping can make all the difference in a buyer’s first impression, so, even if it won’t look like that if you end up listing in January, at least a buyer can see the potential.
Patio? Deck? Porch? You won’t see them under a blanket of snow, so take some shots when those outdoor entertaining spaces are looking good.
Outdoor kitchens are very popular–if you have one, make sure you have the pictures to prove it!
Gazebos or any other outdoor structures can elevate the backyard into an oasis and differentiate it from other properties. Snap some pictures when the weather allows you to show them off to their best advantage.

Keep track of repairs

Buyers are interested in knowing how systems (like heaters and air conditioning ) have been maintained and when they were installed. They feel more confident that the home has been well-cared for when the seller can provide documentation. So if you replace your roof, keep the receipts. If you upgrade the electric service, don’t lose the paperwork. If you do ever list your house, I recommend you prepare a sheet listing the improvements/repairs along with the dates and the cost. (When you can demonstrate how much you’ve spent, it can help justify your list price.)

Clean out your closets

Whether you’re selling or not, it’s wise to clean out your closets every so often. First of all, you discover things you might want to wear or use that you’d forgotten about. Second, by giving things away, you clear out space which makes it easier to find things, opens up additional storage and (in the event you do decide to sell) makes the closets neater. Finally, giving things away that you no longer use is always a good thing to do. Someone else will be very glad to have those items.

Keep a home repair list

Disclaimer: I’m not saying you have to address any of the things on the list. However, it’s not a bad plan to have a running list of repairs or “areas of concern” in your house and on your property. Your home is an asset, but will lose value if not maintained. So this list is not just for the eventuality of a move. Once you identify the potential projects, you can determine where (if anywhere) you want to put your money and effort. Making a list of them may also help you budget for repairs so you aren’t blindsided with lots of things that break at the same time. Noting when systems (roof, windows, appliances, heat, a/c, etc.) are nearing the end of their useful life spans can reduce unpleasant surprises.

So plan to stay put!

As I said at the beginning of this post, planning to remain in your home is a wonderful thing. Being prepared for unexpected (and often uncontrollable) changes in the plan is also smart. The good news is that you can do both at the same time. So, plan to stay; prepare to sell.