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Home buyers deciding not to buy

May 4, 2022 by Jennifer LeBow Leave a Comment

Should home buyers not buy? — In this market, many people who were planning to buy homes are changing course. Find out why and what other options there are.

There’s no way to avoid the fact that it’s a hard time to buy a home. Prices are high, but, more challenging is the level of competition for the limited number of properties available. With multiple over-asking bids in most cases, many buyers are discouraged. Several of my buyers have suggested just “waiting until the market balances out and it’s not so competitive”. While I understand that sentiment, my response is always, “Ok, what are your other options?”

While some decisions can be tabled temporarily or even long term, securing housing is rarely one of them. My advice to my buyers is intended to help them identify what housing choices they have, if they choose not to buy.

Stay where we are. This may be a totally viable option and, if it is, deserves strong consideration. If you cannot work remotely and need to move for a job, or your lease is ending and you can’t renew, for example, you may not be able to stay.
Rent–what’s available? This is one I hear a lot. And it’s not a bad idea….unless there are no rentals available that meet your basic requirements. Pets, for example, can be an issue. If you have a large family and can’t find an apartment that can accommodate you, you may well discover that there are very few single family homes available. If you have children in public school, moving into a rental in another school district will necessitate a change in school. The other thing to keep in mind about renting is the cost. Just as housing prices have soared the last couple of years, residential rents, on average in this country have increased year on year by 22%, which followed a year of similar increases. That steep hike means that the monthly cost of renting may be more than what a would-be-buyer-turned-renter can afford. Additionally, you should carefully consider the total amount of dollars in rent that will no longer be available to use toward a down payment or closing costs if it is spent on rent.
Stay with family or friends. This choice falls under the category “If you’re lucky enough to have this option”, think about it. Clearly, deciding to move in with people you love can be a mixed bag; wearing out your welcome or trying to manage different habitation styles can put a strain on relationships. Additionally, there may be some monetary contribution as food, utilities and other costs will increase for your host.

Again, this housing market is not for the faint of heart (or weak of finances). It’s perfectly understandable that some buyers would not have the stomach or ability to compete in it. However, deciding you don’t want to pursue a purchase means you have to do something else to be sure you have a place to live. While buying may not be a lot of fun, it may still be the best choice. You can’t make a choice in a vacuum–instead of couching it as “I don’t want to buy right now”, reframe it as a question: “If I don’t buy, now, what will I do for housing?” Then you will be making a decision from an informed position.

How pre-approvals can hurt home buyers

March 21, 2022 by Jennifer LeBow Leave a Comment

A pre-approval can be a negative — Sellers have so many offers to choose from these days, they seldom consider any with mortgage contingencies.

Pre-approvals

The newest barrier to prospective home buyers highlights just how competitive the market has become. In the past, the very first step in the home buying process was to get pre-approved for a mortgage. That way, not only would you know what you could qualify for (so you would be looking in the appropriate price range), but that piece of paper would demonstrate to the seller that you were a strong buyer. Of course, the more money you were putting down, the better. Sellers preferred people with 80% loans to those with 90% or 95% loans. However, buyer agents were always pleased when their clients provided a pre-approval letter.

Now, we groan when we see that letter. Why? Because offers that are contingent on mortgages are rarely being accepted! There is so much competition for the few listings available, that the people who have the ability to submit non-contingent offers are winning the bids.

Why don’t sellers want mortgage contingencies?

To understand why sellers prefer cash offers (those not contingent on a loan), here’s a brief explanation: When a buyer’s offer is contingent on a mortgage, he has the ability to terminate the contract and get his deposit money back in three ways.

The first is if the property appraises for less than the agreed-to purchase price. That appraisal doesn’t usually come in until about three weeks after the contract has been signed. So the property has been off the market for a while and, if the deal falls through, the seller has lost valuable time.
If the best interest rate available to the buyer at the time of closing exceeds the maximum rate designated in the mortgage section of the contract, the buyer can terminate.
If, for some reason, once the lender does its due diligence (which occurs after the contract is signed) and determines that the buyer does not actually qualify for the loan, the buyer can terminate.

Conversely, if the purchase is not contingent on a loan, the buyer cannot terminate for any of the reasons above. While this preference has always held true, non-contingent offers have historically been the exception, not the rule.

Today’s landscape

Currently, though, non-contingent offers are virtually the only ones that are being accepted, at least in my market. When I say “non-contingent”, I don’t only mean not contingent on financing, but also not contingent on any inspections! Waiving inspections is a choice that every buyer can make, but the ability to waive the mortgage contingency is not. Buyers who cannot demonstrate that they have the money to make the purchase in cash are unable to compete for the limited inventory.

When will things change?

I am asked this question several times a week. I wish I knew the answer. To see a shift, we will need additional listings and/or a dwindling of the number of buyers who can write offers that are not contingent on financing. Meanwhile, the big question is what will the buyers who are being shut out of the market do? Rentals are scarce as it is; but my (unpleasant) prediction is that the rental market will become even tighter and more expensive due to the same supply and demand issue. Sellers are riding high at the moment, but I, for one, am hoping for a more balanced market in the near future. Only time will tell….

Choosing a Main Line REALTOR©

March 7, 2022 by Jennifer LeBow Leave a Comment

Relocating to the Main Line — If you’re considering moving to the Main Line, here’s what you need to know in order to choose a Realtor.

What to look for in a Realtor©

There are specific skills and abilities that any good buyer’s agent should possess. Knowledge of the local marketplace, experience and strong negotiation skills are some of the obvious ones.

If your agent is not familiar with the neighborhoods you are considering, he or she is less likely to be able to answer your questions or understand the nuances of value there. Furthermore, you will probably not receive much “insider intel” which can often be important. For example, if a new development around the corner is planned, the construction and traffic associated with it could significantly affect you and the value of property in that area. Or what if the school district boundaries are under review and may soon change? If your agent is not familiar with the neighborhood, you could be at a major disadvantage as a buyer, not being armed with as much information as possible.

If your agent is inexperienced, while it might not negatively affect you, it very well could. Your agent’s ability to write a very strong offer, know what questions to ask (and whom to ask) and knowing the ins and outs of these complicated transactions can be crucial. Being able to craft a strong offer, which sometimes requires creativity, is a requirement. While it can be hard to determine, do your best to confirm that your agent has been around the block a time or two.

The most difficult characteristic for a consumer to gauge is how strong a negotiator an agent is. The best method, in my opinion, is to ask if you can speak to past clients. Conversations with them can also shed some light on other qualities that matter like how attentive an agent is, how successfully he or she identified properties that were of interest to the buyer and generally what kind of personality he or she has. For more on how to choose an agent, click here.

I’m moving to Philadelphia’s Main Line suburbs.

What do I need to look for in a real estate agent?

While certain attributes in a real estate agent are universally sought, your Main Line Realtor© buyer’s agent needs to go a few steps further.

1. Provide lightning fast responsiveness

In this market, properties that are listed on the Main Line are lasting an average of around 17 days (with many going in a day or two) before they are snapped up. If your agent doesn’t send you new potential matches within a few hours of their being listed, that’s a red flag. Additionally, if your agent is not responsive to your tour requests or questions about any properties, you are not receiving the service you deserve or need to win a house in this market. Final word on this subject: responses shouldn’t be vague–your agent may need to contact the listing agent or the township in order to provide a definitive answer to your questions. Don’t tolerate laziness in your agent; it will hurt your chances of securing a home.

2. Use technology

Your agent should use the technology available to search for, send you and engage in discussion about properties. He or she should provide active listings as well as information on sold properties, which helps assess value. If you are trying to buy from out of town, your agent needs to be comfortable Facetiming/Zooming and/or taking video for you to remotely tour you through houses. Similarly, paperwork that needs to be signed or sent should be easily done with on line signatures, etc. There are so many great tools out there, designed to enhance the buyer experience that if you don’t believe an agent is taking full advantage of them, that person might not be best equipped to help you.

3. Introduce you to the towns of the Main Line

As a relocation specialist, I figured out years ago that there was very little useful information available about the Main Line towns and their specific personalities. I was frequently fielding questions from frustrated long-distance buyers asking questions like, “What’s the difference between Wynnewood and Bryn Mawr and Berwyn?” and “What is the vibe like in Wayne?” So I decided to fill that void, by creating the Main Line Neighborhood Guide. To my knowledge, there is no other compendium of information like it. As a result, no other agent will be able to provide that specific resource, but if you are trying to understand the difference between the many Main Line towns, be sure to ask whichever agent you are considering for a description/summary.

4. Explain the buying process

The buying process varies from state to state, even if much of it is similar. For example, NJ has something called attorney review and a contract is not final until that step has been made. That is not the way it works in PA. We don’t need attorneys for real estate transactions. Another important piece of information: closing costs, which are not financeable, are high in PA. Depending on exactly where you purchase, they usually run roughly 4-5% of the purchase price. And that’s cash. It’s also good to know what to expect as far as how inspections work, when deposits are due, what enable a buyer to terminate without penalty, etc. Ask any agent you are interviewing to summarize the buying process for you. For a complete overview, in both written and video formats, click here.

5. Explain school district boundaries

Having been born and raised here, it took me a few years of working with relocating buyers to understand that the way our school district boundaries work is not like how they work in most other places. In most areas, if you live in a particular town, you are districted to that town’s schools. Simple. Not here. Here, the township, not the town, is what determines school district. While certain towns do lie completely within one school district, others, like Haverford, Bryn Mawr, Villanova, Wayne and Malvern, among others, do not. Portions of each of those towns are districted to one school district while other sections are districted to another. For more on this topic, click here, here and here for an interactive school boundary map.

6. Discuss the relationship of township, taxes and school districts

As I mentioned above, school district is tied directly to township. Similarly, the tax rate is tied directly to the township. Some townships, like Radnor, tend to have higher taxes than other, like Tredyffrin-Easttown (don’t worry about pronouncing it; everyone just refers to it as T-E). Additionally, a few townships have higher transfer tax, which doesn’t affect your annual tax bill, but does increase your closing costs. It is important to understand how school district, township and taxes relate to each other as your search parameters may need to reflect your preferences. For more on taxes, click here.

7. Educate you about local idiosyncracies

There are unique local customs and issues in every area. The Main Line is no exception.

Ever heard of knob and tube wiring?

Do you know what radon is?

Do you understand why stucco can have “issues” here?

Would you have asked whether a basement got wet or might that not have occurred to you?

Looking to add a pool or independent dwelling unit?–our impervious surface allowances (and other zoning laws) may thwart that plan.

Are you familiar with oil heat? Or radiators?

Do you think a septic system means you have raw sewage in your yard?

Above are just a few examples of the hyper-local specifics that your agent needs to understand in order to best serve you. Ask “what questions should I be asking” and inquire about some of the more common idiosyncracies that tend to surprise buyers coming from other areas.

One more thing…

One important feature of an agent I didn’t mention above, but which is key, is feeling a connection. You don’t have to be best friends, but you do want to feel like your agent “gets” you and what you’re looking for. Remember that you’re going to be spending a lot of time with this agent and the process of looking for a home is the penultimate personal experience–your individual preferences, budget and situation are unique. Be sure to choose to work with someone with whom you are comfortable being yourself and communicating with easily and honestly.

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

What to expect on the walk through

February 27, 2022 by Jennifer LeBow Leave a Comment

What to expect during the walk through — When you walk through the house you’re about to buy, here’s what to expect.

What is the walk through?

The purpose of the walk through visit when you are just about to settle on a home is designed to ensure that:

The house is in the same condition as when you bought it (minus normal wear and tear). That means no leaks have developed, no windows have broken, the toilets are still flushing properly, etc.
Any repairs that the seller was to have done have been completed.

Some walk through surprises

Unfortunately, there are frequently unexpected (and often unwelcome) surprises for the buyer at the walk through. Here are some of the most common misconceptions about what sellers are legally required to do:

“Don’t they have to have it professionally cleaned”? Nope. The only stipulation is that the house be swept clean of debris. The seller is not obligated to clean the oven or the refrigerator or even mop the floors.

“There is a big dark section of wood where they had an area rug and the surrounding rectangle is faded. They didn’t disclose that.” While there is a section on the seller’s disclosure asking if there are imperfections or staining in the floor coverings, most sellers will claim to not be aware as they only moved the rugs upon moving out of the house. This is not a material defect, so it’s not something you can require them to “fix”.

“They took the grill!” Remember, if it’s not attached to the house, it is personal property. If you want a grill, free-standing planters, outdoor furniture or even the shed, be sure your agent specifies those items as being included in contract.

“There are all these nails/picture hangers on the walls. Don’t they have to remove them and patch the holes?” No, they don’t. Consider that if time allowed (remember, sellers are often moving out the day before settlement) and they were to spackle holes, those areas would stand out against the rest of the walls, especially if the wall paint was something other than white. If your new home looked like it had the measles, you would feel compelled to paint which you may or may not have previously planned on doing. The hope is that many of the areas where there are nails or picture hangers will be covered by things you put on the walls. If not, you can decide when/how to repair them so you’re not faced with having to paint the entire house whether you’d planned to or not.

“Why are the tv brackets there but not the tv?” Because the contract expressly says that brackets and any other hardware that is installed (including curtain hanging hardware) remains with the property unless excluded by the agreement. The tv technically hangs on the bracket, but is not attached to the wall itself. So, if you want the tv (or you want the bracket removed), specify that. Keep in mind that removing the bracket will leave a hole to be repaired.

Know what to expect

If you know what to expect and what to look for, you will be better prepared at the walk through. Being forewarned about some of these particulars means you will be less likely to be disappointed by inaccurate assumptions. If you do have questions about what will remain or be taken out of the property, be sure to ask your agent (preferably before you submit your offer!). For more, click here.

Trends in senior living facilities

February 14, 2022 by Jennifer LeBow Leave a Comment

what is happening in assisted living care — There are many changes coming to senior living communities. Read about the new developments.

Types of senior living

Whether you are considering moving into a senior living facility or you are researching this topic for a parent or other relative, there is a lot to learn. While there are still options that are reminiscent of the traditional nursing home, that model is no longer the only game in town. Some offer step down units which may or may not include independent living, help with housekeeping/meal prep/personal care, memory care, full time nursing and hospice. There are typical high rise buildings, pod/cottage style homes, low rise, sprawling buildings and just about everything in between.

Trends in the new senior housing

New patterns are developing as far as the facilities themselves, as well as the services provided and how care and amenities are delivered. Those in the know expect there to be a diversification in the types of buildings designed for senior living. Several factors contribute to the new trends, including COVID, an aging baby boomer population, costs, lifestyle choices and advances in technology. Here’s how they may affect the spaces that accommodate older people.

COVID-driven effects

As most people know, the hardest hit communities when COVID began to spread was nursing homes. Not only were the residents often at high risk for infection, but they were in very close quarters as well. As a result, more small, neighborhood-based facilities are popping up. Interestingly, the opposite is also true and another by-product of COVID: some assisted living facilities are eyeing what has become deeply discounted real estate in the form of hotels/office buildings that have not been able to withstand the economic effects of the drop in hotel stays over the last two years.

Aging baby boomer population

There will be a surge in the need for housing for the elderly as the baby boomers continue to age. This increase in demand will likely create not just more housing, but more variety in what is available. The fastest growing sector is in memory care, which is expected to continue to grow.

The cost of care

With labor, insurance and material costs all on the rise, senior living costs will increase, as well. Part of the industry response in order to stay in business is to offer more customized pricing for residents. Expect fewer one-size-fits-all options and more a la carte services. This model will capture a larger pool of residents.

Lifestyle choices

There has been a great shift in the role of senior living facilities from just providing food, shelter and skilled nursing to creating vibrant, active communities. Programming will continue to evolve and include field trips, arts, exercise, lectures, games/clubs and more. As people live longer and medicine continues to develop, many seniors are living more active lifestyles.

Choice continues to be the driving force in elder care. Historically, most facilities have either served the luxury market or the lower end of the economic scale. The luxury market is booming with some facilities nearly indistinguishable from resorts. However, the middle market, which has been ill-served, is growing. are we are seeing more facilities targeted toward people in the moderate income bracket.

Technology benefits

Just like in every other sector, technology is being incorporated in senior living facilities, allowing for more independent living and better monitoring of important data. We are seeing a huge increase in voice recognition technology and devices which detect falls and allow for calls for help. There is already a customizable version of Alexa available to help senior residents easily make maintenance requests or find out about available activities.

More on-site health care

One of the most exciting trends in assisted living communities is a move to have more on-site medical care. Not only does this change make it easier for residents to have access to care, but, as a result, the likelihood is that they will remain healthier. If simply getting to the doctor is not a barrier, people will be more likely to address health issues sooner rather than later.

Writing a competitive offer in a Main Line bidding war

February 7, 2022 by Jennifer LeBow Leave a Comment

Writing an offer in a competitive bid situation — In this real estate market, buyers are frequently in multiple bid situations. Find out how to make sure your offer is as appealing to the seller as possible.

Competitive home buying market

Unless you’ve been living under a rock for the last couple of years (arguably, not a bad idea), you’ll know that there is much more demand for houses than available listings. This imbalance has led to a common headache for buyers: the multiple bid situation. Sellers are smiling ear-to-ear, as they are inundated with strong offers, with terms designed to appeal to their preferences–waived inspections, cash deals with no appraisal contingencies, seller-designated settlement dates and more. Many buyers are discouraged and frustrated, understandably.

Be prepared

As obvious as it sounds, one of the simplest and most vital steps you can take to increase the likelihood of winning in a competitive bid climate is to have your ducks in a row. Sure, I’m talking about having your pre-approval in place. I also insist my clients have already filled out their Buyer Financial Information form. You’ll need to make sure you have enough funds liquid to make your deposits. Click here for a list of suggestions to be well prepared.

Make your offer as strong as possible

Beyond those concrete tasks, your agent should be sure to explain the different ways you can strengthen your offer. Can you offer the seller a flexible settlement date? Some sellers put a premium on having some leeway with the exact settlement date. Do you understand the appraisal component of an offer and how your lender uses it? You might consider covering a certain amount of gap between the purchase price and a low appraisal, but be sure you understand your risk and the worst case scenario. Your agent should explain what an escalation clause is and how it is used (as well as the pros and cons of using one). What about absorbing a certain amount of inspection items and the different options you have to do that? Is there a scenario in which you might waive inspections altogether? You may have the ability to write an offer that is NOT contingent on a mortgage, even if you don’t have enough cash to purchase it outright without a loan. Again, your agent should address all of these points and more.

Be prepared, part 2

All of the above topics should be discussed before you are bidding on a house. I have worked with a few clients who have terminated their relationships with other agents because they felt that they were not receiving the best possible advice/education in this highly competitive market. In some cases, buyers felt that they had not been apprised of all of their options. In others, they didn’t fully understand them and there was no time to ask questions or make informed choices because their agents mentioned them as they were writing offers (which were due in mere hours).

Advocate for yourself

While I firmly believe it is your agent’s job to educate you about anything and everything involving the home buying process (including the specifics of writing a compelling offer), don’t be passive in this process. Ask questions. Be sure the answers are clear. Pose different scenarios so you are certain you understand. Also discuss how high you should bid. While, clearly, there will never be an exact answer to this question, you should consider how to arrive at your offer price. For more on this topic, click here.

Unfortunately, a common refrain among realtors regarding buyers they’ve had who have lost offers is “Sometimes they just have to lose a few to understand how aggressive they need to be.” While I have said this myself, I understand that not all buyers CAN bid more than a certain amount or waive a mortgage contingency, etc. So it’s important to recognize that you may be outbid because another buyer is simply in a stronger position and can (and did) write an offer that was superior. You can only put your best foot forward. Sometimes, someone else’s foot is just better than yours. You can’t change that, but you can and should do everything you can to make your offer as appealing to the seller as possible.

Main Line Philadelphia: Schools

January 5, 2022 by Jennifer LeBow Leave a Comment

Philadelphia Main Line Relocation school — Philadelphia’s Main Line has so many school options; how do you know which to choose for your child?

Main Line Philadelphia school rankings

If you are considering relocating to Philadelphia’s Main Line and you have children who will be attending school, you are in luck. Why do I say that? Because the Philadelphia suburbs has several very highly rated school districts. That said, it’s important to understand how these rankings are determined. There are several different website that rate schools (with some only rating public schools and others examining private schools as well). Greatschools.org uses a 1-10 system and focuses most on four weighted categories: student progress, equity, college readiness and test scores. For more, click here. Schooldigger.com uses only state test scores. Niche.com uses an A-D grading system based on data in addition to less quantitative information like student and parent reviews. Click here to learn more. There are other ranking websites, including publicschoolreview.com and US News and World Report.

Local school options

On the Main Line, you have choices. There are public schools, parochial schools and a large number of independent schools. For specific information and website links, click here. Also, you should educate yourself (or call me and I’ll explain it to you!) how school district boundaries work in this area. Unlike in many other regions, you cannot assume that two people living in the same town, with the same zip code, will be districted to the same schools. Click here to learn more and here to see which towns are districted to which schools.

How to choose a good school

Define good

First, recognize that low ranked schools still boast students who perform well academically as well as in sports/arts/music, etc. Similarly, high ranked schools have their share of unhappy and underperforming students. The point is that, while the school’s curriculum, teachers, programs, extra-curriculars and test scores certainly contribute to student experience, other factors influence it as well. The child’s individual personality, background, family emphasis on education, all matter, too.

So how do you choose a school that will be a good fit for your child? I’d recommend making a list of the attributes that matter most to you. Maybe it’s college readiness, measured by SAT/ACT scores. Maybe it’s class size, diversity, music education. It could be variety of course options or level of support services. Whatever is most important to your child’s success should be your focus.

Do the research

To get the most accurate idea of how different schools you are considering measure up, you’ll need to do two things. The first is to speak to someone at each of the schools and ask them about the things concerning you. Request to be shown (in person or through data) any corroborating evidence; school representatives are likely to paint a very rosy picture of their schools and may not portray a realistic version. Second, see if you can talk to any parents. One way to connect to local parents is to search Facebook for parent groups in the communities you are considering. Simply pose your questions as straightforwardly as possible. You’ll be pleasantly surprised at the responsiveness. (Note: virtually meeting some of these people is a great way to develop a bit of a network/friend group ahead of your arrival.)

Keep your perspective

Remember, as I mentioned above, a school ranking does not guarantee a certain level of performance or happiness. So don’t approach your school search as a way to define the “right” or “best” school. In all likelihood. there are several schools on the Main Line that would be a good fit for your child. Remember, too, that, no matter which school you choose, there will be days your student has a bad day. A tedious assignment, a poor grade on a test, a soccer game loss, an art project that did not come out well–these are all parts of life. They are not only character-building, but unavoidable, regardless of the specific school. So definitely do your due diligence, but remember there is no single right choice. For more (with some overlap) on the topic of choosing a school on the Main Line, click here and here. For additional information on school district boundaries, click here and here. To see an interactive Main Line school district boundary map, click here.

Jennifer LeBow’s Quiche Recipe

January 2, 2022 by Jennifer LeBow Leave a Comment

Jen LeBow's quiche recipe Jen LeBow’s Quiche

You can either make your own crust or use a store-bought one. Either way, once the crust is ready:

Preheat oven to 425°.

Mix:

6 large eggs

2/3 cup heavy cream

1 cup whole milk

5 oz shredded cheddar (or muenster or Monterey Jack)

2 oz shredded Gouda

2 oz. shredded Gruyere

½ cup diced broccoli

¼ cup chopped tomato

3 T sauteed onions, diced

¼ t nutmeg

salt and pepper to taste