Main Line Homes Blog

Last week Trudy and I decided one evening after dinner to get out of the house and grab a cup of coffee somewhere. We had to pick up some photo prints from our local Walgreens for Jeremy our son who is in Iraq. Anyway our local town has one Starbucks, which Trudy does not like, as she often feels the coffee is burnt. so we were hunting around and decided to see if a local bar/restaurant might have somewhere to sit and grab a coffee. We drive in to the parking lot and whilst we are parking notice this new store.

It is a new pet store, only a few have opened in our area and the plan we learnt is to open them elsewhere. it was great, brightly lit, and when we entered the store we were greeted by a cheery and happy member of the staff. It did not look like a pet store, it looked like a boutique, with bright primary colors and gifts of all sorts for the loves of your life.

We had no intention of spending any money, we went in simply to look. within minutes we were gathering things in our arms to buy for our cat, for our son's dog and i even bought things for client's dogs. It was a great experience, the store is really different and worht a visit. it is located in Paoli next door to the Post Office.

But this is what amazed me. I wanted to blog about this store, it was so unusual, and so much fun I went back to see if I could take some photographs to share the experience with you and encourage customers and frineds to visit and enjoy. So I ask one of the sales staff explaining I am a local Realtor and that I want to blog about the store and share my experience and can I take some photographs. I mean this is the best advertising you can get, word of mouth bragging about your store. "I have to call head office," was her response. After several minutes she says, "No. We are such an unusual store and there is no where else like this we don't want any photographs taken." So I am sorry, no photos to share with you.

So all weekend, I have been thinking about this. I cannot understand this mentality. I mean a competitor can walk in and see for themselves what the store looks like. So I was not going to blog about this great store, but frankly it is a great store, worth a visit and even if the store cannot understand marketing it should not hold you back from visiting and enjoying the place, It is called Cutter's Place in the Paoli village Shops next door to the Post office. I am not sure of the hours but we stopped by one evening as I said and they were open.

We never did get a coffee because the bar/restaurant just did not look like the place where we wanted be and we had our new pet toys to take home. Oh and my client's dogs loved their treats, a great hit and a perfect reason for stop by and say hi.

 As many of you know our son Jeremy is in Iraq. you can read his emails at Iraq Diaries. They see a lot of kids as you may have noticed from his photos. Recently Iraq did really well in an Asian soccer competition and for a brief moment it united the country as you may have seen or read on the news.

Well the kids ask Jeremy if he has any soccer balls.

So Trudy, has decided to collect soccer balls and small pumps to send them over to Jeremy to give out. Used balls are great and many people have some sitting in their garages. If you can deflate them and send them to us wonderful. Our office address is Long & Foster Real Estate, 92 Lancaster Avenue, Devon, PA 19333. Mark your box for the attention of Trudy Vandekar and we will get them shipped to Jeremy.

If you are attending the Active Rain get together being organized by Jeff Belonger in Philadelphia you can bring them there as well and we will collect them and thank you in person.

Thanks to all in advance.

PA Agreement of Sale part 5

Part 1

Part 2

Part 3

Part 4

Part 6

Part 7

Part 8

Part 9

Page 5 of the Agreement of Sale is quite simple. I always find that pages 1 thru 4 take the longest to complete, after that it moves much faster.

Paragraph 12 handles Wood Infestation inspection contingency. Obviously this can be waived or elected. If waived our usual paragraph 27 the Release is agreed upon as well.

If elected the number of days is selected again running from the execution of the contract. Paragraph A says the inspection is at the buyer's expense and will be carried out within the contingency period selected. It is limited to all readily visible and accessible areas of all structures on the property except fences and any structures which are identified. If there is active infestation Paragraph B states buyer can at their own expense obtain within the contingency period a proposal for treatment. Paragraph C states buyer again at his own expense may obtain a written report and proposal for repair if there is any damage from active or previous infestation dealing with repairs limited to that damage caused by the infestation all to be done in the contingency period. Paragraph D handles the options if the buyer is not satisfied with the report and again within the contingency period selected, they proceed according to the choice they make from our friends from earlier Option 1 and Option 2.

Paragraph 13 is dealing with the Status of Radon. Paragraph 13 A allows any information the seller knows about previous tests and results to be entered. Or if the seller has no knowledge this choice can be selected. This information can be found and entered from the sellers disclosure form or can be completed by the seller on receipt and as part of their response to the agreement of sale. Paragraph B handles the inspection contingency, again waived with the usual acceptance of the release in paragraph 27 or elected with a number of days chosen for the contingency period. Tests are done again at the expense of the buyer and need to be carried out by a certified inspector. If seller performs any remediation they will provide certification it was performed by a properly licensed and certified radon mitigation company. However, if the test reads 4 picoCuries per liter or less the Buyer accepts the property. If the reading is above 4 picocuries per liter then the buyer will proceed according to their choice between Option 1 and Option 2.

This page is completed by Paragraph 14 dealing with Status of Water and allowing a water inspection contingency. Paragraph A indicates what service the seller represents  the property is served by, Public Water, On site Water, Community Water, None or space is left for other options. Paragraph B handles the water service inspection contingency. Again buyer can choose to waive and accept the release in paragraph 27, or elects to inspect stating the contingency period. Tests are performed at buyer's expense by a properly licensed or otherwise qualified water/well testing company and may test quantity and quality. Seller is required at his expense to locate and provide access to the on-site or individual water system. Seller also agrees to restore the property at sellers' expense prior to settlement. If buyer is not satisfied with the results, within the contingency period they will proceed according to the option they choose between Option 1 and Option 2.

It is always interesting to study home sales market statistics.

As any economist will tell you statistics don't lie, they just can be manipulated to say what you want. The numbers below are for all home sales in the Tredyffrin Easttown School district irrespective of price. I have taken the identical period of 10 months January thru October for 2006 and 2007 to see if recent home sales in T/E are really suffering as the newspapers will have us believe.

  Inventory Accumulation for the Last 12 Full Months

*Current Inventory is based on the actual available properties on the date this report was created.

**Average Monthly Sales is the average sales for the last 12 full months

***Inventory accumulation (in months) = Current Inventory Units / Average Monthly Sales

These first numbers show the actual moment in time that I prepared this report which is November 15^th. There are 267 homes for sale in T/E at all prices. These homes total $233,828,505 which gives you an average price of $875, 762. Over the last 12 months the average number of homes selling per month is 51 which means that if no homes were to come on to the market from today onwards, and there being no reason why a house would not sell it will take 5 months before all the homes in T/E will sell.

January to October 2006

January to November 2007

The numbers above are a direct comparison of the ten months January to the end of October 2006 on 2007. We see fewer homes have been listed over the same period and therefore the listed volume is less. The average listed price has dropped, the number of homes that went under contract dropped, but only 11 homes less sold this year to last year which means that proportionately more homes sold as there were fewer homes on the market. The average sold price dropped and the average number of days on market increased by about 25%. Not a bad picture overall.

But what does it mean? These numbers can change if you look at smaller price ranges, and you need to do that to really find the truth about the market for a specific price range. If your home is priced in the $550,000 range for example you need to look at the range of prices that bracket that. I personally would look at both $525-575,000 as well as $500-600,000 to see if there was any difference and if there was try to understand why. If you are considering selling your home contact me and we can look at the market for your home specifically.

As I have said consistently over this year, our particular market is not as bad as the national papers have made the housing market out to be.  There are a lot of strengths in this area. That does not mean that it is wonderful, as we can see with the rise in days on market, but every market is local.

What it does mean is you cannot presume your home will sell. You need to take the correct steps to prepare it for sale.

• Have your home inspected before you put it on the market; remove the fears that something may be unearthed by finding out ahead of time.
• De-clutter and stage the home, if you cannot do this yourself maybe hiring a professional stager will be worth the investment or find a friend or Realtor who is talented. Read Staging Hints to Help by Linda Sticklin 
• Market it correctly, either yourself if that is what you wish to do, or using a professional full time Realtor.

Obviously on this last point I have a biased opinion, but with the days on market rising, having a professional on your side that understands marketing, communicates clearly and often and works on your behalf alleviating some of the stress, especially when problems arise is worth the cost. If the statistics are correct they will also get you more money for your home.  Some will also help you to see the big picture and keep you motivated and having fun through the home selling process as well.

PA Agreement of Sale Part 4

Part 1

Part 2

Part 3

Part 5

Part 6

Part 7

Part 8

Part 9

Paragraph 10 headed Inspection Contingency Options is the controlling paragraph for the 4 following paragraphs. It describes the 2 options available between the buyer and seller and the possible results under these options.

Option 1 applies within the contingency period as selected and stated in paragraphs 11-15. There are three possible results of the inspections.  1) The buyer can accept the property as it is and release all parties under paragraph 27. 2) If the buyer is not satisfied with the inspections the buyer can terminate the agreement by written notice with all monies returned to the buyer as per the terms of paragraph 30 of the agreement. 3) The buyer enters into a mutually acceptable agreement with the seller in relation to repairs or credits towards closings costs that are acceptable to the mortgage lenders if the agreement is conditional upon a mortgage.

If the buyer and seller cannot reach mutually acceptable terms within the time stated for the inspections in paragraphs 11-15 and the buyer does not terminate the agreement in writing and give it to the seller within the time specified, the buyer will accept the property and agree to the release in paragraph 27. THIS IS VERY IMPORTANT. Even if you are in the process of negotiating a mutually acceptable deal, if the period has not been extended by an addendum and signed by all parties, as the buyer you MUST terminate the agreement before the inspection period expires. Option 1 is often thought as a more buyer friendly option, however, some sellers prefer option 1 as there is a shorter time period with the various options. It gives the buyer the option to pull out of the deal if they do not like the results of the inspections.

Option 2 like option 1 applies within the period defined for the inspections in paragraphs 11-15.  Here you have two possible results. 1) The buyer as in option 1 can accept the property. 2) If the buyer is not satisfied will present the report to the seller with a written proposal of corrections or credits desired by the buyer. It also goes into details of what the proposal can include, such as names of professionals selected by the buyer but is not required. This is where the major difference arises between the two options. If the seller accepts the buyer cannot terminate the agreement. The seller also has a specific number of days as selected by the buyer and stated in the agreement to reply to this proposal, to give them time to get their own estimates. The seller notifies the buyer of the sellers choice in writing; to either agree, or to credit the buyer at settlement for the costs to satisfy the buyer's proposal, as acceptable to the mortgage lender, or to not agree to the buyers proposal.

If the seller agrees to the proposal or to credit the buyer at settlement the buyer accepts the property and accepts the release in paragraph 27.

However the buyer has three options if the seller chooses not to accept the terms of the buyer's proposal or not to offer a credit or does not respond within the time specified then the buyer will within a state number of days 1) accept the property as per their inspection reports and accept the release in paragraph 27; 2) Terminate the agreement in writing and notify the seller with all deposit monies returned to the buyer according to the terms of paragraph 30. 3) Or enter into a mutually acceptable written agreement between the buyer and seller which is acceptable to any mortgage company.

Like Option 1 if no agreement is reached within the time period as stated in option 2.2.c and buyer does not terminate the agreement in writing it is the same as if the buyer is accepting the property and agrees to the release of paragraph 27.

As you are probably already seeing, many paragraphs use similar language and repeat choices stated in other paragraphs as well as making reference to paragraphs 27 and 30, so you need to make sure you understand those paragraphs particularly.

The page continues with paragraph 11 which relates to the Property Inspection Contingency.  There is a long description of what you can have inspected and by whom whilst not limiting you to those mentioned; and there are suggestions about what you should investigate such as deed and use restrictions plus many others that may apply to the property.

The buyer then selects to waive this option and agree to the release in paragraph 27, or to elect to make inspections within a specific specified time which runs from the date of execution of the agreement, not the date it is written. All inspections are carried out at the buyer's expense, and the inspector must be a full member in good standing of a national home inspection association or a person supervised by a member, or be a properly licensed or registered engineer or architect. The contingency can state if any existing conditions are exempt from the contingency.

It then continues by defining what the buyer's options are if they are not satisfied with the results of the inspection. Paragraph 10 is referenced as explained above, Option 1 with no further explanation and Option 2. Under Option 2 on the property inspection contingency there is also the choice of entering a deductible where if the repairs specified in the report are equal to or less than this amount, the buyer will accept the property and accept the release of paragraph 27. If the repairs are greater than deductible all the terms as stated above under Option 2 apply. If the seller accepts the proposal from the buyer, it is considered that he has satisfied these terms if any uncorrected or uncredited amounts equal the deductible.

PA Agreement of Sale Part 3

Part 1

Part 2

Part 4

Part 5

Part 6

Part 7

Part 8

Part 9

A short post today to complete Page 3.

Page continues with Paragraph 7 revised in September 2005 which is a warning about meeting deadlines. If the agreement is contingent upon inspections and/or repairs, insurability, environmental conditions etc, if these are not carried out by the times stated in the agreement it is the same as if the contingency has been waived and the Buyer accepts the property and agrees to the RELEASE stated in Paragraph 27. This is one of the duties of the Buyers agent to make sure you are staying within your time lines and if extensions are needed as a result of discoveries negotiating those or terminating the contract so that the buyer is protected.

Paragraph 8 added in September 2005 deals with Property Insurance Availability. Option is to waive or elect. This paragraph allows the buyer to make sure the property is insurable with conditions that are reasonably acceptable to the buyer. As stated above this is a new paragraph and has not seen a courtroom as yet. It most likely will get tightened up as a result of a lawsuit as the language is too loose and allows a buyer room to get out of a contract if they wish. Sub paragraphs deal with steps as a result of the findings, A is acceptance; B Termination in writing with all monies returned to buyer according to the terms of paragraph 30; C enter into a mutually acceptable written agreement. If the buyer and seller do not reach a mutually written agreement during the contingency period and buyers does not terminate the agreement then as stated above in Paragraph 7 buyer accepts the property and agrees to the Release in paragraph 27.

Paragraph 9 revised in September 2005 deals with Inspections. There are five sub paragraphs. Paragraph A states that the seller will provide access to those who are making inspections. This also applies if the buyer is obtaining a mortgage. If the mortgage contingency is not elected make sure your agent specifies that access is given to appraisers if you are going to get a mortgage but the agreement is not contingent upon that. Buyers may also attend any inspections. Paragraph B allows the buyer to make a pre-settlement walk through inspection, even if all other contingencies are waived. Paragraph C states that seller will have heating and all utilities including fuel on for all inspections. Paragraph D allows any of those professionals making inspections to provide a copy of the inspection to the broker for the buyer. Paragraph E allows the seller to obtain without cost a copy of any inspection report from the party for whom it was prepared. Often if a deal falls apart it is important to now the reasons. Buyers usually resent handing over their inspection reports as they have paid for them, but this paragraph is clear in its wording that sellers can ask for it without charge.