Main Line Real Estate | Jennifer LeBow, Realtor
Helping You Relocate to Philadelphia's Main Line
Jen LeBow’s Apple Cheddar Salad Recipe
For salad, combine:
12 oz greens of your choice (mixed, spinach, romaine, arugula)
2 peeled, cubed Granny Smith apples
7 oz cubed cheddar cheese
½ cup candied pecans
For dressing, combine:
¼ cup reduced balsamic vinegar
3 T maple syrup
3 T EVOO
Salt and pepper to taste
When you look at houses for sale online, you will find a detailed description and lots of pictures of the house itself. There are usually a few pictures of the exterior and, if the lot offers in-demand features like a patio, lots of privacy, mature perennials, etc., a good listing agent highlights them as well. However, what many agents don’t do is take a step back to consider what advantages the neighborhood or larger community offers. No house exists in a vacuum. My advice to home sellers is: make sure your agent is marketing the hyper local-aspects of your neighborhood that are likely to appeal to buyers.
Think about this: if your house/lot were located elsewhere, you might never have bought it. Whether you are conscious of it or not, there were location/community/neighborhood features that contributed to the appeal of the property. Because you don’t just live in your house–you need to commute to work/school, shop, have access to entertainment, etc. Just as certain characteristics drew you to the property when you bought it, the same holds true for prospective buyers (especially those less familiar with the area), so be sure to highlight them!
With all the documentation required to purchase a property, including (in PA) a 14-page Agreement of Sale in 9 pt. font, you’d think every possibly eventuality would be addressed. You’d be wrong. There are unlimited scenarios that can arise when a property is being sold and no way to detail what should happen in every event. So how do you know whether a certain situation merits a buyer delaying settlement? It’s not always easy and the listing and buying sides often disagree.
Now that I’ve thoroughly bashed the incompleteness of the Agreement of Sale, I am going to seemingly contradict myself by encouraging you to read it carefully. Why? Because it does, indeed, specify certain requirements. For example, the document says:
Possession is to be delivered by deed, existing keys and physical possession to a vacant Property free of debris, with all structures broom-clean, at day and time of settlement…
For example, many buyers think the seller needs to have cleaned the house, including wiping out the oven and the (empty) refrigerator. Sorry buyers–as long as there are no dishes/food/pots and pans left in the oven or the refrigerator, it is considered “free of debris”.
The section that describes what is included/excluded deserves careful reading.The majority of issues surrounding buyers wanting to (and thinking they have the right to) delay settlement revolve around this topic.
So, while buyers and sellers often don’t pay attention to the details of the document, it does, indeed address many of these points.
Another area of contention involves this language:
Seller will maintain the Property (including, but not limited to, structures, grounds, fixtures, appliances, and personal property)
specifically listed in this Agreement in its present condition, normal wear and tear excepted.
While the previous examples are actually fairly clearly explained in the Agreement of Sale, interpretation of condition is more open to interpretation. Here are some common issues that fall under this category that suggest a buyer could delay settlement:
Is the buyer within her rights to delay settlement until repairs have been made? Should she only expect to delay until she and the seller agree on how the repair will be done/paid for? Remember, from a legal perspective, nothing in the Agreement of Sale survives settlement. What that means is that once buyer and seller go to settlement and the property has legally changed ownership, the buyer relinquishes any leverage over the seller. Settlement effectively ends any further negotiations or interactions between the parties and terminates any responsibilities the seller has to the buyer. This finality is why buyers often want to delay settlement–until they pay the seller, they still have leverage over him. That leverage disappears once closing is completed.
If there has been an inspection and the parties have agreed that the seller will make repairs prior to settlement, what happens if those repairs have not been made? Well, then the buyer has a strong case for delaying settlement. But, what if they have been made, but the buyer isn’t satisfied with the repair? Or what if the seller cannot provide documentation that all repairs were done “in a workmanlike manner”, as stipulated on the Reply to Inspection document? And what, exactly, does that mean? Could the buyer hold up settlement in any/all of these situations?
Now you may understand why it’s not always clear whether a buyer does or doesn’t have the right to delay settlement. So what should a buyer do when there’s an issue like some of the ones mentioned above? The first line of defense is to read the Agreement and any Reply to Inspection/Addenda forms as some of the questions might be answered there. For less defined questions, I’d advise discussing with your agent the best course of action. Sometimes, even though the sales paperwork doesn’t survive closing, people can have an attorney draw up some kind of agreement stipulating who is responsible for what. Sometimes, buyer and seller may agree to a monetary remedy–the seller writes the buyer a check for an amount both agree to and the matter is considered closed. Sometimes, settlement is delayed a day or two to allow time for a repair or correction to be made.
If the parties can’t come to an agreement, they may have to get lawyers involved, which is the least desirable outcome as it costs everyone money and sours what should be a positive transaction. However, a home purchase is a significant investment and if you need to go that route, so be it. On the positive side, rarely do things escalate to that point. Usually, both parties want to find a way to figure it out and go to closing.
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
The first question prospective home sellers usually ask me is “What is my home worth?” The answer to that question is never a specific number, but rather a range. And that range reflects this truth: value is in the eye of the beholder. The value of certain features of the property may be of more or less value depending on the buyer.
Certain buyers may place more emphasis than others on aspects including square footage, layout, number beds and baths, convertibility/flexibility of space, storage, parking, size/shape/privacy of the lot and more. Someone with four kids who wants a guest room might be willing to bid higher on a 6-bedroom house than a family of four people. Those extra bedrooms carry less value to the second buyer than the first. Similarly, someone who wants a swimming pool will pay much more for a house with a pool than a buyer who either doesn’t want one or could take it or leave it.
Many buyers are looking for a turnkey property that requires no remodeling nor replacement of systems (like a roof, windows, or HVAC system). Others don’t mind some updating (particularly if money doesn’t need to be spent inmmediately and a kitchen or bath renovation could wait a few years). For people in the first group (who from either a financial or time perspective can’t easily buy a house and update it in the near future), a turnkey house is worth more than it would be to someone who is hoping to put their personal stamp on the house.
Location affects several important facets of a property
“Wildcards” is the term I use to describe this situation: “My best friend lives in the house next door!” or “My grandmother used to live in this house.” or “This is the same street name and number of the house I lived in as a kid in another state.” Believe it or not, I’ve heard comments like these and for “wildcard” buyers, the value of the property very likely exceeds what a typical buyer might pay for the house.
Another crucial factor in how high someone will bid for a house is what I call the buyer desperation quotient. To illustrate this idea, consider these two buyers: Buyer #1 has just begun looking for a house and has the luxury of being able to move any time in the next 15 months. They don’t have to sell to buy and have flexibility as far as staying with relatives if they do sell before they find a place. Buyer #2 is a family of seven, with two rottweilers. They are moving here to start a job and need to move in somewhere within 60 days. No one will rent to them because of the dogs, and, besides, they haven’t seen a single rental with five or more bedrooms. They have already bid on and lost four houses. Buyer #2 is much more likely to bid higher on a six bedroom house in good condition and in a nice neighborhood than buyer #1.
While every property has certain characteristics which help determine its value, that value will always be a range, because various buyers will care more about specific aspects of that property than other. From the size to the commutability, condition and school district, there will be buyers who ascribe more or less value to each of those features. Throw in less tangible property traits like “neighborhood feel” or one of the wildcards and you can easily see why there is a range. Now add in the fact that different buyers are in different situations and that idea of a range of value makes even more sense.
For additional information on this topic, 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
Parnsip Fry Recipe
Preheat oven (or air fryer) to 400°
Place in resealable plastic bag and shake/combine:
3 parsnips, cut into ¼” thick fries
1 T EVOO
1 ½ t cardamom
1 t rosemary
½ t paprika
¼ t Kosher salt
Line cookie sheet/baking pan with foil sprayed lightly with cooking spray.
Spread parsnip fries out in single layer on cookie sheet.
Cook 15 minutes.
Stir/flip.
Cook 10-15 minutes longer, or until deeply browned.
If you are considering putting an offer on a house, you need to determine what it is worth to you. Any property usually has a market value within a range–for example, you may be looking at a house, which, based on comparable sales, is worth between $600,000 and $675,000. Those “comps” are the primary basis for determining value. You and your agent will compare similar properties in the same neighborhood, if possible and try to add and subtract for their differences. The idea is to compensate for variables like square footage, property condition, amenities like a garage, air conditioning or a finished basement. Evaluating the subject property in relation to the comps is the first step in assessing that property’s value.
Comps are a great place to start when you are establishing value. However, they cannot take into account individual situations. They can’t reflect differences in people’s specific needs, whatmight be meaningful or important to them or their specific situations.
What some buyers might describe as “must have” features, others might call “bonuses”. I had a buyer who had looked at several homes, some three bedroom (all she really needed) and some four bedroom. Across the board, they all had at least some bedrooms that were quite small. When I took her to see a property that had four truly enormous bedrooms, we absolutely noticed and appreciated that feature. It also had a finished basement. This particular buyer is a single woman whose kids are out of college and living on their own, though they do visit sometimes. When we were discussing an offer, seated in my car outside the house, several other interested buyers arrived for showings. Clearly, there was a great deal of interest. When she told me what she was comfortable bidding, I explained to her that I respected her decision, but thought it would go for more. When she asked why, here is what I said:
The bedroom sizes and the fact that there are four that big? That finished basement? While you see them as bonuses, for many families, those are necessities. Furthermore, we have looked a lot of houses and haven’t seen bedrooms the size of these. If you have a guest, their room doesn’t really need to accommodate much more than a bed, a night stand or two and a small dresser. For a larger family, with kids who have desks and dressers and other furniture, the number of bedrooms and their large size is more valuable to them than it is to you. If you had three kids living at home and were looking in this price range that we’ve been looking in, is there a home that we’ve seen that you’d buy before this one?
When I posed the question that way, she understood why a different buyer might consider some of the homes features more valuable than she would and, therefore, offer a higher price. The age-old concept of “supply and demand” for a scarce commodity cannot be ignored!
When I say to consider location on a personal level, I mean that there are certain characteristics of a street or locaiton that will be more valuable to one buyer than another. I had a client who was used to walking her three high-energy kids to school every morning. It was time spent together that was important to them and help the kids shed some of their excess “sillies” to be ready for school. That buyer said that being able to walk to school was crucial. Well, in our area, we have few sidewalks. Therefore, they were willing to spend more than other buyers might on a home that met their families other needs AND allowed for them to safely walk to school.
Location can also affect value when it has a bearing on your social life and/or your work life. What if a house you are looking at would allow you to have a 7 minute walk to commute to work? Or what if your best friend lives three doors down? Suddenly, that property is worth more to you than to another buyer.
When a buyer client asks, “How much should I bid on this; what do I need to do to get it?”, I respond that those are not the same questions. How much you should bid depends on its value to you. Then I explain what I call the “desperation factor” If there are other buyers out there who are more desperate than you to own it, they are likely to present stronger offers.
What do I mean by desperate? Let me paint a picture for you. Imagine a buyer who is moving to the area and whose house is under contract and settling in six weeks. It is July and the buyer has two children whom she needs to register for public school. This family has three dogs.
That is an example of a desperate buyer. Beyond the value of the house itself, there is value to that buyer to securing a property. Any property. So that buyer is going to write a more competitive offer than you might.
Obviously, the comps provide a solid starting point for evaluation what a property is worth. However, specific features may hold more value for certain buyers than others. A first floor office may be a nice extra for you, but a necessity for someone else. The location may be considered generally convenient and a nice neighborhood by anyone’s standards, but if it borders the nature trail that you love to walk on every week, you might be willing to pay more for the house. Finally, your level of desperation comes into play as well. If you don’t have to move, but will for a property that meets your needs and fits your budget, you might not bid as aggressively as someone who feels that their back is against the wall as far as getting a home under contract ASAP. For all of these reasons, the value of any property varies depending on who is looking at it; it’s in the eye of the beholder.
For more on this topic, 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
If you are house shopping, you may already be looking at DOM (days on market) when researching listings. Why is that data important? Well, if it’s new to the market, it means the seller is not likely to take a low bid. It hasn’t been available long enough to be “sitting”. Alternatively, if a house has been on the market for 48 days, the assumption is that the public is not valuing that property at its list price. That is why it hasn’t sold. If the seller is realistic and actually wants to sell the property, he or she should be prepared to accept a lower offer. As a rule, old listings are more likely to sell below list price than at or above it.
Another piece of information you can learn from days on market is how quickly you, as a home buyer, need to get in to see the property. If it has been on the market for a while, it probably means the intitial buzz has died down and it’s unlikely there are lots of showings. If it’s brand new to the market, it’s bound to have lots of showings, so if you think it might be a good fit for you, be sure to make an appointment as soon as possible so it’s not gone before you’ve had a chance to see it.
Another MLS entry you might see is CDOM. It represents cumulative days on market. Here’s what it means: sometimes, a property is for sale and then it’s taken off the market and relisted. If fewer than 60 days have elapsed since it was removed and relisted, the number of days it had previously been on the market are added to the current days on market so buyers can see it is not exactly “brand new” to the market. Then your agent can help you learn about the pricing history, when it was originally listed and other specifics that can help you obtain a clearer picture of the scenario. This information may enable you to make a more strategic offer.
The moral of the story is that people often pay no attention to the number of days a property has been on the market, but that metric can provide valuable insight into how competitive an offer needs to be. In a perfect world, your real estate agent should not only be monitoring days on market as well as other ancillary entries for any MLS listings you are considering, but also explaining to you how and why they matter and what they can tell you.
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
Sellers tend to focus on the sales price of their homes, but what they should really be concerned about is their net proceeds. That figure is the amount they actually walk away with, once all fees are paid and all reimbursements have been made. Please talk to your listing agent for a full list of fees. I can tell you that, in PA, they include (but are not limited to):
So when you are discussing the list price, or when you are negotiating an offer, be sure to ask your agent to estimate your net proceeds, since that is the number you should care most about.
