Bright MLS November 2019 Housing Report

Bright MLS has released their Residential Market Statistics for single family homes through November  2019.  In today’s podcast I will discuss YTD results for Delaware County Pennsylvania.  If you would like information about this or any other County or any specific municipalities in the Delaware Valley, please contact me.

The report compares current results to one-year ago, same time period.  As with all Real Estate statistics, two things are true.  First, the performance within individual zip-codes can and will vary significantly from the overall County.  Real Estate is local and results can vary from neighborhood to neighborhood and even block to block.  There is no such thing as a “national” Real Estate market so, whether you may be looking to buy or sell, please contact me for details about your areas of interest.  I can provide current information and keep you informed about the evolving market.  Deciding whether it is the right time to sell or buy is a personal decision typically involving a number of variables.  I can provide the knowledge and insight to help you decide what works for you.

My second point is that, unfortunately, all Real Estate statistics involving sold data is stale.  While a sale may be settled or closed today, the real question is when was the offer negotiated?  Typically sales take 45 to 60 days to close so the market today may be different.  Up-to-date information is important!

As far as the statistics, there were 8608 units listed through November compared to 8485 last year with an end-of -month inventory level of 626 compared to 1481 with a monthly supply of inventory or MSI of 1.2 compared to 2.8.  6397 properties have been settled with an average “selling price” of $290,331 and a “median” selling price, meaning that half of the sales were higher and half were lower, of $225,000 compared to 6555 settled last year, same time period, at an average price of $271,960 and a median selling price of $210,000.  The year-to-year change in settled properties is down 2.4% while the average selling price is up 6.8%.  The DOM or “days on the market” for settled properties was 42 days compared to 51 one year ago.  The MSI suggests a seller’s market overall with 3-month supply of available inventory generally considered a “balanced market”.  The underlying data shows a wide range of results in all categories among the 49 different municipalities in Delaware County.

We can debate whether averages or medians are more important but what really matters is how your property or one that interests you compares to those appraised and settled with similar location, features and condition.  Appraisers rely on nearby settled properties so average or median pricing loses some validity but may provide insight for both the short term and the long term.

What about the properties that did not sell?  Many came off the market and remain unavailable.  This happens more often as the holidays and year end approaches which I find fascinating.  I tell my clients that I cannot guarantee that their house will sell if it is on the market but am fairly certain that it won’t if they take it off the market.  Anyone trying to sell now will have less competition and houses tend to show their best this time of year.  I understand that showing and selling a house during the holidays can interfere with enjoying the season but buyers out looking now tend to be serious.  Of course, if a seller needs to buy their next house, the inventory level is much lower than normal.

Generally speaking, houses may get showings without generating offers unless buyers think they are priced within the range of their perceived “worth”.  Most property listings whose contracts are canceled or allowed to expire have asking prices considered high for their market and/ or they were poorly marketed, meaning that some buyers and agents may not have even known that a house was available to purchase.  Of course this may well depend on the ratio of buyer and sellers so there is more to this than raw statistics.  If a market has a lot of inventory, some buyers may not be willing to look at houses priced high compared to the rest of the market and try to negotiate the price down so many sellers open to negotiating their price may never get the chance.  I will happy to discuss specifics with you.

The overall economy is doing well with some adjustments here and there.  Statistics aside, what are you planning to do?  Real Estate is generally a long-term investment unless you are looking to fix and flip it or planning to move within a short period of time.  There are opportunities out there.  As with the stock market, it is very difficult to pick the best time to make a move.  All you can do is get the best available information, determine what is in your best interests and then start the process.  I am a phone call or email away and getting started is easy once you take action.

Have a great holiday season and a happy and healthy new year!

There is no time for inexperience, empty promises or false expectations! 

HIRE WISELY:  We are not all the same!

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51 Things a Buyer’s Agent Should NOT Do, Even If Their Client Accepts Them

Real Estate agents are licensed by the state.  I am in Pennsylvania.  Once approved to represent or “work for” clients, they are bound by RELRA, our Real Estate Licensing and Registration Act, which is enforced by the state Real Estate Commission.  If an agent becomes a REALTOR, which means they belong to national, state and local REALTOR Associations, they are bound by a Code of Ethics which is very similar to RELRA although enforcement is handled through a local Association in most cases.

Once a REALTOR is “hired” to represent a buyer-client they owe them certain “fiduciary duties” which are spelled out in the rules and regulations.  They should review and discuss them with their buyer-client to ensure that they are committed to working together.  Here is a list of things NOT to do even if the buyer-client asks you to do them or if they accept your doing them.  Most of this list comes from real-life examples, fortunately not my own.  I have been mediating buyer-seller and client-agent disputes since 2002.  In addition, I have served on all levels of our Association’s Professional Standards Committee which means I have heard, reviewed, evaluated and resolved many ethics complaints.  As I like to say when I teach ethics to my fellow agents, you can’t make this stuff up.

Here are some examples of what NOT to do when representing a client buying Real Estate:

• Do not ask how they found you or if they have spoken to or worked with any other agents;
• Do not ask if they have seen or know of any specific properties that interest them;
• Do not ask how they may have learned about any specific properties that interest them;
• Do not spend a lot of time preparing for the initial conversation. Personality wins every time;
• Do not explain the buying process, your respective “roles” and how you earn your fee;
• Do not tell them what you are going to do for them and why they should hire you;
• Do not discuss the overall market and how it is performing, specifically in areas they like;
• Do not discuss how using the Internet for “shopping” may distract them;
• Do not ask if they are financially pre-qualified to buy or discuss what a seller may expect or require before responding to an offer;
• Do not recommend a proven, local lender. Let them use any lender they want without question;
• Do not explain different financing alternatives or what a “seller assist” is;
• Do not clarify what the buyer is looking for in terms of their “wants” and “needs”;
• Do not ask if they own any Real Estate or if they have a property to sell;
• Do not ask about their current living situation, their sense of urgency or their timeframe;
• Do not ask if they know anyone else interested in buying or selling Real Estate;
• Do not discuss how pricing correlates with location, features, condition and their competition;
• Do not review the Consumer Notice with them or ask them to sign it. In fact, do not discuss or document your “business relationship” with them or explain your “fiduciary duties” to them.  If “dual agency” becomes a possibility, you can always discuss it later;
• Assume you know what is best for them and let them assume you know what you are doing;
• Do not sign a representation contract, explain your fee, how you are paid or that a seller typically pays your fee. If something comes up, you will figure it out later;
• If you have no exclusive contract or if you have a “non-exclusive” contract, hope they want to see properties where the listing broker will pay you what you think you are “worth”;
• Do not tell them that the length or term of the contract and your fee are negotiable by law;
• Do not explain how the “protection period” works if you use one;
• Do not tell them to call you about any property that may interest them or that they find on their own such as any with a “For Sale” or “Coming Soon” sign or any properties they find online;
• Do not explain how “cooperation” with other Real Estate agents works or that you can show them any property in the MLS;
• Do not discuss what may cause them to owe you money;
• Do not trust the buyer to be able to determine the best areas for them to consider. Assume you know what is best and tell them what to do.  What could possibly go wrong?;
• Do not suggest having them drive by properties first to evaluate the neighborhood and whatever else may impact their buying decision before taking the time to see inside;
• Do not review MLS printouts or call listing agents to make sure that properties meet their needs and expectations;
• Do not discuss scheduling showings or tell them that getting a confirmation may take time;
• Do not explain the Agreement of Sale to them. In fact, make sure all paperwork is done electronically so you can save them time by not having to meet with you in person;
• Do not discuss what may happen between the time an offer is presented to a listing agent and when it is signed or what typically happens before settlement;
• Do not ask a listing agent if a property is still available before showing it;
• Do not ask a listing agent if they have any other offers or interest or have turned anything down;
• Do not ask a listing agent if the seller has any requirements such as a preferred settlement date;
• Do not discuss a potential “range of values” for an offering price or discuss negotiating;
• Do not discuss a strategy for making a competitive offer or for competing with other buyers;
• Do not discuss what personal property is or could be included, excluded or negotiable;
• Do not review the disclosure statements before asking them to initial and sign them,
• Do not explain the contingencies in the Agreement of Sale, especially the inspections, or what could possibly go wrong;
• Do not stay on top of the timeframes in the Agreement of Sale or provide ongoing updates;
• Do not discuss any concerns that a seller, an inspector or an appraiser might have which could affect the buying process and possibly end it unsuccessfully;
• Do not offer to attend inspections. Let the inspectors manage the buyer’s concerns;
• Do not explain the mediation clause or what it means should a problem arise;
• Do not discuss a home warranty or offer them an opportunity to include one with a sale;
• Do not document changes to any contracts or provide them with copies of everything they sign;
• Do not explain how deposit money is handled if a sale falls through;
• Do not discuss what may happen if they fail to do what is required to complete a sale;
• Do not promote or protect their interests above yours. Assume that “confidentiality” is not important if it gets in your way.  The acronym, OLD CAR, which describes our “fiduciary duties”, only makes you remember the first car you owned;
• Do not let them make all of the decisions. Why bother them when you know what is best?;
• Do not suggest they contact a professional, such as a lawyer, when they have a question;
• Do not stay in touch after a sale! They will remember the spectacular service you provided!

Of course, this list is really intended to show you most of what we are expected to do, even if actual performance may vary from one agent to another.  Our “fiduciary duties” require that we obey your lawful instructions, be loyal to you, disclose what we know, keep your business confidential, account for any monies we handle and that we provide reasonable care and due diligence to you.  There is so much more to working for buyer and sellers than simply doing the paperwork.  Even if you have bought or sold Real Estate before, we have knowledge and insight gained through experience, training and education.  We are expected to protect and promote your interests throughout the process and to be knowledgeable and competent in what we do.  Our clients have the right to expect nothing less.

When it comes to buying what is typically a person’s largest asset:

There is no time for inexperience, empty promises or false expectations!

HIRE WISELY:  We are not all the same!