Andrew Wetzel's Musings

November 11, 2022

Sellers, Does Disclosing Multiple Offers on Your Property Make Sense?

That depends. What is your strategy, meaning what do you think will happen?

The Pennsylvania Association of REALTORS Listing Contract has a clause that states in part, “Unless prohibited by Seller, if Broker is asked … Broker will reveal the existence of other offers …”. Broker could mean Agent since the contract is really with the Broker.

This “conversation” should take place at the time the listing contract is being signed so that there is no misunderstanding about what the parties have agreed to do. Frankly, I am not sure that all agents really discuss what the seller is signing, that all agents completely understand the listing contract or that every seller really understands what they are signing or that they really care as long as their property gets sold. My experience as a mediator and serving on Professional Standards hearing panels has shown time and again that a number of sellers and buyers claim that they did not understand what they signed. The agents may have done their job or not. Electronic signing can make this more problematic as people rush to execute contracts and get properties on the market and under contract. How sad! Real Estate is typically our biggest asset and largest investment. Mistakes can be very costly!

At the very least, this MUST be discussed before there is any interest in a property or there could be a problem especially if the seller thinks their agent acted unethically. Absent discussing the paragraph, the “default” position as stated is that the agent has been “authorized” to disclose whether or not there are multiple offers. If asked, the answer could be yes or no.

Many buyer agents will call to ask if there are offers “in hand” or “other interest” in a property before preparing an offer; some will even call to ask before scheduling a showing. In “hot” seller’s markets these instances will increase. Why is this a concern at all?

From a buyer or buyer agent’s perspective, they may not want to waste their time pursuing a house that may be unattainable as doing so may result in their missing out on their “second choice” if a seller has or is about to sign another offer. Our multiple listing service requires that the listing status be changed within one business day of executing a contract but a lot can happen in that time. Listing agents may have advertised a due date for offers that others assume valid only to find that something was signed sooner than expected. Real Estate sales are a “moving target”. Even if I answer your question now, the answer could change.

As far as the disclosure, some buyers may be willing to “compete” so thinking that there is competition may cause them to make their “highest and best” offer at the outset. On the other hand, some may decide not to compete. Are they entitled to know anything short of an agreement of sale being signed? No they are not unless the seller grants that permission.

What should a seller do?

As far as how to respond to inquiries about “multiple offers”, a listing agent MUST have a conversation with their seller client about how to handle inquiries. We cannot lie and we cannot divulge the answer without our seller client’s permission. We can tell others that we are not authorized to answer the question, which may make others think there is competition. How they handle our response is up to them.

I do not like to disclose that we have other offers but I believe that there is a time and place for doing that. Telling others that there are no offers makes no sense, does it? Whatever other agents and sellers do, throughout any given year, I see MANY listings expire, meaning that the listing contract ran out before getting an offer signed, or get canceled, meaning that the seller and agent decided to stop working together such as when the seller decides not to sell, that advertised in their “remarks” section that there was a “multiple offer situation”. That adds a “twist”:  the listing agent is answering the question without being asked. Did the seller authorize that? The fact that these houses did not go “under contract” and sell can mean that multiple buyers thought them priced too high. Did that disclosure help the seller? Did it deter any serious buyers who may have offered enough to convince a seller to sign a purchase offer? There is no “one size fits all” answer.

There is no guarantee that, regardless of the type of market or the amount of competition, a buyer will have a “second” chance when making an offer to buy Real Estate. If they really like a house they may want to consider making their best offer at the outset. Should a buyer offer “more” if there is real or perceived competition or “less” if there isn’t? Shouldn’t they base their offer on HOW MUCH they like and want to own a house and what they can manage financially?

A market analysis is helpful as is concern about an eventual appraisal if financing is involved but why should a house be “worth more” because someone else may like it? Suppose money is “no object”? Here is the underlying question:  what is the point of making an offer on Real Estate? I believe that the goal should be to lock it up to exclude other buyers. A buyer can do a number of inspections to see if there are any “material defects”. If their interest changes, they can request repairs or credits or even terminate a sale. I do not take any of these lightly but I do feel for buyers who misjudge the market and miss out on what may have been the best house for their needs and wants.

One interesting point of contrast is that a seller may entertain any number of offers, of course they can only sign one, but a buyer can really only pursue one house. I have heard of buyers making multiple offers but that can blow up if not handled properly.

My job as a listing agent is to “protect and promote” my seller client’s best interest. They rely on my experience, training and education even if we disagree about how to manage this specific topic. As I mentioned, I do NOT like to disclose the existence of other offers generally speaking but that can change when it suits our strategy. Let me share the possibilities.

Let’s assume we have a buyer agent with a buyer interested in making an offer. When the agent calls me to ask if there are any offers, which I presume to mean “in writing” and not a mere expression of “interest” which means nothing and does not always result in an offer being written and presented, if I do not know my seller client’s thinking, absent this paragraph in the contract, I would have to say that I have not discussed that with my client, which may lead some to think there are offers or not. Either of those could hurt my client.

Suppose I have at least one offer in hand and I disclose that. Will their buyer decide not to compete or could that make them try to win? Who knows? However, having one or more offers in hand does not guarantee that a seller will sign one or even be interested in what they may have offered. Suppose I have multiple offers but all are well below the stated asking price or have contingencies or conditions that concern the seller? While that could help me convince the seller that the price is too high, what sense does it make to tell buyer agents that we have offers in hand if none are going to be signed?

The life of a listing agent would be easier if every listing had quality multiple offers to review and if telling someone that they have competition compelled them to do their best to “win” but

human beings are unpredictable. In reality, an offer can even be retracted before being signed and returned, which we call “execution and delivery”. As I often say. It is never over until the seller has the buyer’s money and the buyer has the seller’s house keys.

Here is what I suggest and my seller clients have generally agreed with my thinking:

First, I do not want to disclose whether or not we have other interest or offers in hand.

Second, when I receive an offer, after doing what I need to do before presenting it to my seller, I will look at the recent and upcoming showing activity and review any feedback I may have received. I need to think about whether anything else might be coming in. If I think there is, we need to stall to allow that to develop. However, purchase offers have expiration dates and I never assume they are flexible. Waiting for an offer that does not materialize and letting one “in hand” expire makes no sense. Some buyers will just move on to another house, especially in a competitive market.

Third, if I have received at least one offer that a seller is strongly considering signing and someone inquires about the existence of any offers in hand, I will ask my seller for permission to report that we do have other offers. I won’t specify the number or disclose the details. Worst case, the caller does nothing and we are no worse off. Best case, they bring us an offer that is better than what we already have in hand. Absent a concern about an “appraisal”, before signing the latest offer, to be fair, I ask my seller for permission to let the other agents know that there is competition and ask for their buyer client’s “highest and best” offer. My thinking is that it would only be fair to let everyone now know since the latest offer was prepared with that knowledge. I have heard complaints about agents who were led to believe that a seller was going to sign their offer but changed their mind when a better one came in. We need to be conscious of what we say and do to avoid any misunderstandings. A buyer may be selling their house and have an offer they would sign if they knew they had a house to buy. Imagine signing an offer only to learn that the house you wanted to buy was sold to someone else!

Do I have to go back to those who took the initiative and brought offers in already? I don’t think so. If none of those agents ever asked the question, that is on them. If they did ask, regardless of how I answered, they should not assume or expect me to keep them up-to-date as the situation changes. Again, Real Estate is a moving target. The seller is my client and I work for them.

As I often say, this is NOT a “retail” environment. The asking price is not necessarily the final price and the purchase of Real Estate typically requires several steps allowing either party the opportunity to “change their mind”. It can be like a “roller coaster” and that aspect can wear on the parties or their agents.

This is especially true when the market is not “in balance”, meaning that sellers or buyers have a decided or perceived advantage. Our REALTOR Code of Ethics requires us to be honest, meaning that we cannot lie although our not being permitted to disclose something could adversely affect another agent’s client. I try to be “fair” meaning that I am treating all parties “consistently”. The public, including my fellow agents, deserve nothing less regardless of what they “expect”.

There is NO TIME for inexperience, empty promises OR false expectations!

HIRE WISELY: We are NOT “all the same”!


May 22, 2021

The Type of Market and How it Affects Searching for Price

I recently wrote a blog on “Multiple Offers” and how two different agents viewed them.  I want to explore one of their comments further.  One agent said that multiple offers are the result of pricing a property too low.  While I don’t agree, I do feel that there is something to this.  Let me explain.

Suppose an agent is working with a buyer “pre-qualified” and comfortable spending up to $300,000 on a house.  Pick any price.  What “price range” should they search?  I say “range” because no one would search for one specific price.  You can start at a certain number or go up to a certain number.  This is why pricing is different than before we had the Internet.  Agents have to “factor in” what a consumer may be thinking rather than trying to interact with the mindset of an experienced, trained and educated agent.  Let’s start with the minimum first.

For some buyers, such as investors, I do not set a minimum.  They may be open to considering whatever is in their search results and open to driving by or studying what I send them to eliminate houses that do not appeal to them.  Buyers looking for their next home, especially if they are financing the sale, may need to pick a starting point to meet their needs and abilities as well as the requirements of their financing.  Some houses simply need too much work.  How far they look below their “top number” depends.  Sometimes the areas that interest them or the features they include will provide some guidance.  Otherwise, they may evolve into “knowing” that anything below $x is a waste of time.

What about the top end?  They are “pre-qualified” and comfortable spending “up to $300,000” so why wouldn’t that be the number?  This is where it gets tricky.  The market will suggest or dictate what you should do if you want to succeed.  In a buyer’s market, if houses are getting less than full price, you can search higher than their top number.  That does not guarantee success as there may be competition even in “slower” moving markets.  A seller may still want full asking price.

In a seller’s market, when houses are getting more than full price, you may want to search lower than $300,000, expecting to have to raise your offer, if given the chance.  In a hot market every house will not sell so this is not a blanket statement but you may not succeed by offering full price.

The MLS offers data comparing the selling price to the opening and final asking prices.  However, “data integrity” may be lacking if incorrect information is entered, possibly impacting the overall report.  An agent has to look “within the numbers” to see what is really happening with pricing.

A buyer needs to know their financials, including their comfort level, and an agent needs to interpret the market so that they can properly advise their client.  How much to offer is still the buyer’s decision.  In some markets, offering “full price” will get a house “under contract”.  In other markets, the “asking price” is where the bidding starts.  The price is either a ceiling or a floor.  Ultimately, prices have to appeal to buyers, agents and appraisers.   Even cash sales have some parameters.  Sellers set the asking price and buyers determine the value.

That being said, some sellers and their agents purposely underprice a house to expose it to more people in the hope of generating multiple offers.  As I often say,  Real Estate is not retail!

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

HIRE WISELY:  We are not all the same!

May 15, 2021

Multiple Offers: Two Different Opinions

Competition and multiple offers seem normal these days.  Your opinion about them probably depends on whom you represent and your personal experiences.  They do not guarantee success for a seller but make it harder for buyers and their agents.  I recently heard two very different opinions about them.

A buyer’s agent, frustrated by losing yet another bidding war, told me that multiple offers are the result of pricing a property too low.  I guess that makes some sense, pricing it higher might reduce the amount of competition but is that best for a seller?  Would that result in their seeing the highest and best possible offer?  Who knows?  There are a few things I think I can say in general:

  • Competition tends to produce the “highest and best” offer, even if it is not what a seller wants.  When there is only one offer a seller may think a better one will come later.  They often do not.
  • Looking at and comparing multiple offers can get tedious, especially if they seem repetitive.  I have had several listing agents tell me that, at some point, their seller stopped reviewing additional offers.  Presumably, they had at least one they liked but that concerns me.  A buyer agent who shows a house and takes the time and effort to prepare an offer should be able to trust that their buyer’s offer was considered.  We have forms to confirm that but the bigger picture is that offers not presented may be better than what a seller accepts and that those that “appear” uncompetitive may just be a starting point for a buyer who really likes a house.
  • Some agents actively encourage a flood of showings hoping for multiple offers and a quick sale.  There is nothing wrong with that but it creates an environment that must be managed.  What is the goal?  I assume it is to shorten the marketing time and to get the “highest and best” offer that will appraise and close.  The real dilemma may be knowing whether to accept an offer or question whether it will appraise.  What if it doesn’t?  Having a pre-listing appraisal may help but may not be ideal, especially if the market is rising.
  • While there is nothing wrong with multiple offers, I think it places some responsibility on everyone involved.  Our clients must be advised of the advantages and disadvantages.

This agent was frustrated with writing offers that failed and having to start showings again.  Imagine being a buyer who loses your preferred new or “next” home to competition, especially if it happens again and again.  We are in perhaps the best sellers’ market I have ever seen and its major attribute, if you  want to call it that, is that the number of buyers far exceeds the number of available properties.  While this does not mean that every property will sell, every buyer will not get a house.

Another agent posted on social media that a buyer’s agent who writes offer after offer is not doing their job.  I would love to have these two agents in the same room.  While I do agree that some agents do not adequately prepare their clients, both buyers and sellers, for what is likely to happen in this market, every buyer will not be able to buy a house.  There is a supply problem.  Buyers can adjust their needs and wants and pursue a house that is not selling but will they?  If multiple buyers want the same house, only one buyer will get to own it.  Does that mean that every agent who represented an unsuccessful buyer failed to do their job?  NO, but it could.  In a multiple offer situation, a buyer  may want or need to make their “highest and best” offer rather than assuming they will get a second chance.  A buyer agent has to present what they are given but the buyer decides their terms.  Doing the same thing over again is not a formula for success but let’s not assume that the buyer’s agent did anything wrong.

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

HIRE WISELY:  We are not all the same.

April 5, 2021

My New Audio Course is LIVE on

I received an email from the staff at Listenable.  They provide an online platform that offers “powerful, bite-sized audio courses authored by well‑loved experts”.  They said:  “Congratulations on launching your first course on Listenable!  We’re excited to have you on board!  We sincerely appreciate the work you’ve done to create such an outstanding course and we are proud to have you on the Listenable team.”

I am happy and excited to add my content to their impressive lineup of courses.  The title of my course is “The Basics of Selling Residential Real Estate”.  Why did I create it?

My passion for Real Estate led to my writing blogs and recording podcasts.  Someone at Listenable heard my podcasts and contacted me to ask if I would be interested in creating an audio course for them.  The subject matter was up to me and this topic seemed an obvious choice.

As I have learned over the course of my career as well as through my involvement in various roles within the Real Estate community, Real Estate is not rocket science by any means although many make it far more complicated than necessary.  The process of selling or buying residential Real Estate generally involves a number of basic steps that must be completed in order to succeed.  Hiring a professional should increase your chances for success.  Our experience, training and education can provide the knowledge and insight typically needed to navigate the home selling or buying process.

My course consists of 13 lessons averaging about 8 minutes each.  I break the steps of selling Real Estate down into “the basics” and explain what we do and why we do it.  My goal is to take some of the mystery out of what people think we do and clarify it so that the typical listener will be more comfortable with the process.  I discuss the entire selling process from hiring an agent through settlement/ closing.  I hope that you will listen to it and recommend my course to people you know.

Here are the lessons:  The “Five Steps to Selling Real Estate”; Hiring an Agent; Preparing Your House for Sale; Marketing Your House to Sell; Pricing Your House to Sell; The Listing Contract; Your House is on the “Active” Market; Congratulations, You Have an Offer; Contingencies; Closing the Sale.  I included two “bonus” lessons:  Andrew’s Time-Tested Real Estate One Liners and The Code of Ethics and Standards of Practice of the NATIONAL ASSOCIATION OF REALTORS.

Here is a direct link:   To enjoy14 free days of Listenable, use this link:

I have an extensive catalog of blogs and podcasts posted on several websites including my primary site  If you haven’t followed them, I encourage you to give them a try.  If you have read and listened to my material, thank you.  I will keep adding new content.

Best wishes and thank you for listening and reading!  As always, I am a phone call, email or text away if you have any questions.

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

HIRE WISELY:  We are not all the same.

October 3, 2020

Data Integrity: How Accuracy Impacts Searches and Profits

“Data integrity” ensures that reported information is accurate and can be relied upon.  In Real Estate this could be the status of a property, the price, the type of property and its features.  The importance of accurate information cannot be overstated as people make costly decisions based on what is reported.

A seller needs a “ready, willing and able” buyer to complete a sale.  Buyers “acquire” Real Estate information from a variety of sources.  They expect that all properties matching their search criteria will be in their search results so that they can evaluate them and decide whether to take any action.  Suppose they get wrong information or they do not know that a property is available?  They may never get to see it so they cannot buy it.  Houses may sit on the market unsold causing the listing agents to ask the sellers for an unnecessary and costly price reduction which reduces their proceeds but does not make it any easier for buyers to find their property in their search results.  Think Google search.

Errors will affect a market analysis for both sellers and buyers.  Sellers looking to price their property according to its location, features and condition may rely on bad information causing them to overprice or underprice their property.  Their house could sit on the market unsold or they could accept less than they should have.  Buyers need accurate information when deciding how much to offer a seller.

Houses that do not sell typically have a pricing or a marketing problem.  By marketing I mean wrong or missing “searchable” property features, missing or poor-quality pictures and missing or poorly written property descriptions/ remarks sections.  In addition to excluding properties that really matched their search criteria, poor marketing may cause buyers to dismiss properties because they “look” bad.

Bad information can also impact the mortgage appraiser.  They evaluate selling prices based on reported comparable sales.  They rely on and verify what is reported but how would they know if something is missing?  Appraisers rely on pictures, features and the public remarks to try to identify the prior sales most similar to the house they are appraising.  What is the cost of inaccurate or missing information?  If relying on bad information makes it appear that a buyer paid too much, their sale may stop unless the seller lowers their asking price OR the buyer comes up with more money OR they somehow work it out.  Mortgages are based on a percentage of the appraised value so errors matter.

To conclude, data integrity is a BIG deal.  Many sellers have wasted months or even years on the market when they really had little chance of selling given the inaccurate information.  I call these “fatal errors”.  Marketing exposes property information to potential buyers, their agents and anyone else who may need or want to rely on what they hope is accurate information.  Garbage in; garbage out!

The Internet has made this more complicated.  Most buyers “shop” online, many even after hiring an agent.  The MLS syndicates property information to the major search engines.  If the MLS information is inaccurate, this magnifies the problem because the information is going directly to the consumer, unfiltered. Your printout is literally like a resume.  Unless your house is on a well-traveled street exposing your “For Sale” sign to lots of traffic, the MLS and Internet may be the only ways anyone will know you want to sell.  Does that make you feel comfortable?  What is the cost of delaying your plans or being asked to accept less money than you should?  What does your printout look like?

I recently met two couples looking to work with me, one to buy and the other to sell Real Estate.  Both plans involved my searching the market to identify comparable properties.  Let me briefly discuss my experiences with both.

First let me discuss the buyers.  They are ready to buy their first home, have saved the necessary funds, done a little exploring on their own and are ready to conduct their search.  We discussed their budget, their “needs” and their “wants”.  Fortunately, my experience enabled me to share how the best search can get messed up because listing agents or those they utilize to upload the details of their property listings often enter incorrect information or, just as bad, incomplete information.

These buyers had two specific “wants”:  a porch and a yard.  I performed a search without those features, found 26 “results” and sent them to my clients.  Then I did two additional searches, adding the two specific “wants” separately.  I found only 3 listings that showed there being a porch and only 3 showing some yard.  I knew that seemed low but never expected the results to be so wrong.

I looked at the more basic search with 26 results and identified an additional 17 properties with porches, raising the real total to 20, and found an additional 21 properties with a yard, raising that total to 24.  How pathetic!  If I wanted to take the time I might review the pricing history to see how long the incorrect listings had stayed on the market and then to see how many took price reductions.  The bottom line is that I assume nothing:  porches and yards are salable features but not present on every home so not entering them when they are present can be costly.

The other couple is looking to sell a 4-unit building.  It features a large lot with a detached 2-car garage and ample parking so nothing is truly comparable.  However, determining a range of potential pricing should not be as difficult as it was.

Using my experience, I knew that I had to start my analysis by looking at multi-unit properties without specifying the number of units.  When I do this I often find “commercial” properties, meaning they offer more than 4 living units, but that did not happen here.

My search identified 22 properties.  7 were listed as offering 2 units; 1 was listed as 3 units; 1 was listed as a 4 unit.  All were correct but there were 22 in the search results?  13 properties were listed as only having ONE UNIT!  So sad and so avoidable!  My best guess is that the people who uploaded the data thought “unit” referred to “buildings” and not leased, income-producing units.  Who entered the information?  Did the property owners know?

Of the 13 errors, 11 offered 2 units and 2 offered 3 units.  Had I been searching specifically by number  of units and not known better, I would have missed information that could be helpful to these sellers.  I wonder if any buyers missed these 13?

One additional point.  Only 7 of the 22 showed annual income, an important measure used by investors.  I understand that some of these buildings had vacant units but think it important to enter “projected rent” rather than assuming that every investor knows the area they are searching.  Many investors own Real Estate located far from where they live.  One agent actually had the monthly rent instead of the annual rent.

The bottom line is that buying and selling residential or investment Real Estate can be challenging enough without hiding property from people.  Data integrity issues can cause buyers to miss the best listings and some sellers may take needless price reductions when price may not be an issue. 

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

HIRE WISELY: We are not all the same!

Delaware County PA August 2020 Local Real Estate Market Insight

Bright MLS has released their Local Market Insight statistics for single family homes in Delaware County Pennsylvania through August 2020.  If you would like more detailed information about this or any other County or any specific municipalities in the Delaware Valley, please contact me.  I am only a text, email or phone call away!  I respond promptly to all inquiries.

The overall market continues to be affected by the pandemic and resulting economic impact.  However, generally speaking, the results in many areas are encouraging and, as always, your experience may differ depending on your location and how you have been personally impacted.  As I always say, the decision to buy or sell Real Estate is a personal one and the current environment typifies that.

The report compares current year-to-date 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 any more than there is a national weather forecast so, if you are thinking about selling or buying, 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 are stale.  This is especially true if you are relying on Internet valuation models which use recorded data rather than up-to-date MLS information.  Even then, while a sale may be reported as 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, even if not perfect, is important!

As far as the statistics, there were 5533 units listed for sale through August 2020 compared to 6532 listed through August 2019, a decrease of 15.3%.  Low inventory levels can have a major impact on the Real Estate market, depending on how many buyers are competing.  There were 4141 closed sales through August 2020 compared to 4682 through August 2019, a decrease of 11.6%.  Compare units listed to closed sales and it is obvious that many houses did not sell.  The median selling price through August 2020 was $249,900 compared to $234,000 through August 2019, an increase of 6.8%.  Interestingly enough, statistics just for August 2020 are much improved over August 2019, suggesting that the spring market was delayed and not completely lost.  Again, these numbers vary throughout the County:  the underlying data shows a wide range of results in all categories among the 49 different municipalities in Delaware County.

Generally speaking, low inventory levels in some areas have produced multiple offers and a frenzy among buyers, some of whom may live to regret a hasty decision to get a property under contract.  I still see people who regret decisions they made or did not make during the last boom.  During the shutdown when “in-person” Real Estate activity was not permitted, many buyers made offers “sight unseen” or without inspections.  The effects of that remain to be seen but Real Estate, perhaps with the exception of properties acquired strictly as “investments” with documented income, is generally not something given its expense and complexity that the typical buyer would want to purchase without an in-person showing and inspections.  Technology, however advanced, has its limitations.

What about the properties that did not sellMany came off the market and still remain unavailable.  As the pandemic has evolved, some properties did come back on the market but many have not.  Did owners delay, change or give up their plans?  Buying activity has been strong but the sellers may be reluctant to allow showings or may have other issues they are dealing with.  My main concern is whether people are making an informed decision or reacting to what they “think” is happening in the market.  As always, some opinions are just that.

For example, I am sitting on the Auxiliary Property Reassessment Appeal panel in Delaware County and to date have heard well over 400 appeals by owners questioning whether the new assessed value assigned to their property is realistic or not.  While I understand the concern about how the new values based on July 2019 market values will affect next year’s tax bills, many are saying that the pandemic has lowered selling prices which is a very debatable statement.  Whether true or not is easily demonstrated but, regardless, the new assessed values are based on July 2019 long before the current pandemic was known.  If 2020 numbers were used, many would see even higher numbers.

Buyers need to do the same planning and preparation that buying always requires.  Selling involves the same planning and preparation as in the past.  Anyone looking to sell or buy just needs to understand their local market and decide how to react to the pandemic as a “variable” that was not here last year and, hopefully, will be gone in the near future.  The reassessment has another dimension of uncertainty.  As always, the effects of buying and selling remain for years.

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 may have less competition and more offers to consider.  Buyers may have more competition and fewer houses to consider.  Hiring an experienced, trained and educated professional is more important than ever.

Despite the pandemic, every house will not sell.  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 property was available to look at or purchase.  I have created a new blog and podcast on that very subject based on two very recent experiences, one with a seller and the other with a buyer.  Some buyers may even make “full price” offers just to control the process only to have remorse later as inspection results are revealed. 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:  why try to negotiate a price down when other similar properties are available at more competitive prices?  Many sellers open to negotiating their price will never get the chance.  I will happy to discuss specifics with you.

The overall economy is coming back but many are still hurting financially.  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.  An educated consumer faces better odds than a lucky one!  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.

If you want or need to sell any type of Real Estate, now or in the future, whether you tried and did not succeed before or are doing it for the first time, it is never too early to start the planning and preparation.  Please do not wait for what you think is a better or the best time to start.  Buyers look all year long and can only see and buy properties that are available to see.

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

HIRE WISELY:  We are not all the same!

July 16, 2020

Delaware County Residential Property Reassessment 2020

On July 1, 2020, property owners in Delaware County PA were mailed letters advising them of their new “assessed values” to be used starting with the 2021 tax year.  This began the formal tax appeal process.  I have heard from many, especially on social media, concerned that their taxes may skyrocket given how much their “assessed value” had risen.  I empathize and ask people to remain calm.  There are additional steps to follow.

Taxation has ALWAYS been a point of contention for Americans going back to our founding.  However, I am finding that, with the combination of the pandemic, social protests, the economy and the upcoming election, some may not have been paying much attention as the reassessment process moved forward and they are now shocked as it starts to “get real”.  Reading both sides of the mailing should provide some comfort but many focus only on their assessed value and what it could mean.  Let me provide some background.  There is ample information available for anyone who wants to learn more and now is certainly the time to get engaged with the process.

Delaware County was last reassessed in 2002.  That was a major undertaking.  The current process seems easier because the information is more current and technology has improved.  There are over 203,000 parcels to assess so every property could not be visited.  Property owners have had two opportunities to appeal the new valuation.

The reassessment was court-ordered after two families filed lawsuits alleging that the system of determining assessments was not fair.  As a REALTOR I am very familiar with the complexity of trying to be uniform in determining assessments, especially across municipalities and with respect to new construction.  The judge ruled that assessments were so inconsistent that they violated the state constitution.  Property taxes are an “ad valorem” tax, meaning that they should be uniformly levied in proportion to property value.  The goal was to make the process more transparent by using “market value”, while specifically preventing a tax windfall to the County.  That is unlike what happened in Philadelphia and differs from what happened in the County in 2002.

Several steps were taken to determine a property’s value as of July 2019.  Owners were mailed initial paperwork to review to see if the County “knew” what they actually owned.  There was an “appeal” process if there was a disparity.  Now that the “final” values have been mailed there is a second, formal “appeal” process.   The last day to appeal is September 1 with all appeal hearings to be concluded no later than October 31 so that the new assessment rolls can be certified no later than November 15.  Only then can they can determine the millage and the actual taxes.

The “burden of proof” rests with the property owner to provide competent and credible evidence that their valuation is incorrect.  An appraisal is not required but can be very helpful as far as meeting the “burden of proof” standard necessary and an owner may wish to hire an attorney.  Absent an appeal, or if someone does not report for their hearing, the assessor’s value is presumed correct.   I have heard some say that they do not feel comfortable with the appeal process and I can appreciate that but that is how the system works.  Facts, not presentation skills, will determine the outcome.  If your value “appears” reasonable, you may decide to do nothing.  That is your choice.

The goal is to arrive at a County-wide assessment total.  Once that is established, the County will need to link that with their budget by determining the “millage”.  Only then will individual property owners have the opportunity to know their tax liability.  NOTE:  this article pertains only to residential properties.  While all parcels are part of the process, valuing non-residential properties follows different guidelines.

Two final points.  First, the new assessment is based on market value which explains why it “rose”.  The last assessment was based more on generalities such as square footage meaning that two similar properties could be assessed and taxed similarly even though one was “distressed”.  I have seen that in my Real Estate business.

Second, appeals are permitted every year based on an advertised schedule.  If a property owner misses an opportunity they will have another one but will risk overpaying until then.  I respectfully encourage everyone to remain patient, follow the deadlines and let the process play out.

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

HIRE WISELY:  We are not all the same!

Selling Real Estate: Three Scenarios

Selling Real Estate in and of itself, as an “independent act”, can be interesting enough.  Contracts and paperwork aside, it has to be marketed/ exposed, identified as matching someone’s needs, visited, negotiated, inspected and eventually survive several steps proving that both parties can and want to complete the deed transfer.  Every one of these steps can be lengthy.

I have found that there are really three basic scenarios possible when someone wants to sell a property.  While similar at their core, the different scenarios each add their own dimension to the process and an agent and their client need to know the scenario and what makes them different.

The least complicated sale is one where a seller simply wants to sell a piece of Real Estate.  “Least complicated” does not always mean simple or easy.  The agent needs to know the seller’s motivation, is it a matter of time or money?  Do they want a quick sale or require a certain “return”?  Are their liens?  What is the condition?  What is the “fair market value”?  What is the local market like?  How easy is it to schedule showings?  Over time these may change and more questions may arise.  It takes an experienced, trained, educated and knowledgeable agent to properly advise their client as there is so much more to this than uploading the information to the MLS and Internet, installing a “For Sale” sign and waiting for a stampede of anxious buyers.  This is not a “retail transaction” and often gets more complicated once buyers and their agents start to express interest.  Experience will allow a professional to better prepare their seller-client for what the seller does not know might or will happen.

Many sellers need to sell to buy something else, even if not another piece of Real Estate.  The biggest difference here is that they “attach” a number to the sale that they think has to be met or the process does not make sense for them.  Even if they simply want to achieve a certain level of proceeds that changes the basic sale and may well end it before it starts.  If they want to buy another property that connects one evolving process to another and, at times, synching two evolving processes can become challenging.  For example, can a seller move into their next home when they need to or will they own two properties at the same time or will they need a place to stay for a short time?  Sometimes a sale happens without a seller knowing what happens next.  Sometimes they find their “next home” without having sold their present home.  While these situations often work out nicely, there are times where sellers who become buyers do not have any idea how juggling two evolving processes can possibly work out but history suggests that it does.  However, it requires more than luck.

Some sellers are looking to sell and buy but do not “need” to coordinate both  processes.  They can carry two properties and are willing to do that which makes both aspects easier to manage.  This does not mean that they are comfortable doing that or that their thinking won’t change later so a professional must ask enough detailed questions to avoid later surprises.

Not to minimize the time, effort and training required, it is relatively easy to get a listing contract signed and upload the information to the MLS and Internet.  Technology has made the marketing so much easier but we are paid more for what happens next and throughout the process, likely earning nothing if a property does not sell or if a sale falls though.

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

HIRE WISELY:  We are not all the same!

June 3, 2020

How Buyers Bought Real Estate in 2019:  Who is the Typical Buyer?  Part 2 of 2.

Today I want to discuss the 2019 NAR or National Association of REALTORS Profile of Buyers and Sellers.  The report comes from a survey using 125 questions mailed to over 159,750 recent home buyers who purchased a primary residence between July 2018 and June 2019.  This was a national survey so your market may be quite different.  Real Estate is local:  there is no national Real Estate market so please contact me for information about your local market.

This is Part 2 of 2.  In Part 1, I focused on buyer characteristics, meaning who is the typical buyer.  In Part 2, I will focus on the process the typical buyer used to find their home, the results they achieved and how they felt about the experience.  There will be some overlap between the parts.

As I learned years ago, buying a home is an emotional decision justified with logic.  This is what can make it fun or not.  The process can be interesting enough when there is only one buyer involved.  People have different ways of making decisions and we all handle challenges and stress differently.  Buying a home typically offers plenty of both.  When more than one buyer is involved, there can be quite a negotiation between the parties and they often seek my opinion.  Purchasing a home is typically the largest financial transaction anyone will ever make and it involves many lifestyle factors.  It is a serious process.  Here are some highlights:

  • 87% purchased existing homes; 13% bought new construction;
  • Nationally, buyers typically paid 98% of the asking price;
  • 55% of buyers said that finding the “right property” was the most difficult part of the process; 26% mentioned financing (including saving for a down payment (13%), getting a loan (8%) and the appraisal (5%)), 19% cited the paperwork and 18% mentioned understanding the process. And yet, buyers often avoid or delay seeking professional assistance.  Given 24/7 access to the Internet, some may find this interesting.  I am not surprised as it supports my belief that Realtors bring value to the process of buying Real Estate above and beyond simply providing houses to look at.  While that is obviously important, buyers need to arrange financing and determine what they want and need in a house so that they can evaluate their options and make the best choice for themselves, keeping in mind that they may have serious competition.  Some houses sell quickly.  Buying a home takes time and effort.  For example, I have worked with many buyers during my career and have been able to identify houses for them to consider that they did not or could not find on their own.  My experience working with sellers, especially those whose properties other agents could not sell, has taught me a great deal about marketing homes to ensure that they appear in buyer’s search results.  Think “Google search”.  This knowledge helps me with buyers.  I will be happy to explain this in detail;
  • 86% financed their purchase, typically financing 88% of the purchase price with first-timers financing 94% and repeat buyers financing 84%;
  • The median down payment was 12% for all buyers with 6% for “first-time” and 16% for “repeat”;
  • 9% found the mortgage application process to be much more difficult than expected with only a 1% difference between first-time and repeat buyers. This explains why so many wait to do this, perhaps to their detriment.  Sellers tend to focus on three parts of any agreement:  the amount of the offer, the buyer’s financing and the terms and conditions of the offer.  Sellers want to avoid or minimize the risk of a failed sale;
  • 13% reported that saving for a down payment was the most difficult step with 51% of those citing student loans. This is a problem that has been well reported.  It delays many aspects of life;
  • 50% of buyers found the home they purchased online; 28% through an agent; 7% from a “For Sale” or an open house sign. There is no doubt that the Internet has displaced agents as a valuable source of property listings.  No one can or should dispute that.  However, it has clearly NOT displaced the need for us to assist with the numerous tasks that are necessary to buying a house regardless of where or how it was identified.  One final point here is that it is important that a buyer provide accurate information as far as what is important for them.  Having a buyer search online for one set of criteria while their buyer-agent searches for something different can and will cause problems.  We should be finding the same possibilities!  Communication is critical;
  • 94% were “satisfied” with the process but only 63% reported being “very satisfied” while 7% were somewhat or very dissatisfied. Buying a house or investment property can be very frustrating.  Trying to justify the emotion of a home purchase with logic can be a challenge.  I have met a number of owners who told me that they made a mistake when they bought their home; some realized that sooner than others.  While their situations may have varied, this often meant that they would have some difficulty selling or achieving what they wanted or needed to make a move.  I can share some stories;
  • 61% were given agency disclosures at some point with 27% at the first meeting, 23% when the contract was written and 11% at some other time. In PA you may know this as the Consumer Notice form that we are required to use.  The purpose of this disclosure is to offer a buyer choices as far as how we are to work together.  Historically many buyers assumed we were representing “their best interests” even though they had not formally committed to using our services.  Prior to buyer agency all agents worked for the seller’s best interests!  The good news is that 61% received it, even if late.  20% say they never received it and 20% said they did not know.  In addition to being a REALTOR and Associate Broker, I am a Mediator and have spent years working on our Professional Standards Committee.  In those roles I have been involved in many situations where the consumer, meaning a buyer or seller, had quite a different perception of their relationship with an agent than their agent had.  Trust me when I tell you that this can cause problems;
  • Continuing with that thought, 39% said they had a written representation agreement with their agent; 19% said it was oral; 28% had no agreement and 15% did not know;
  • Buyers ranked a number of agent qualities as “very important”: 97% want honesty and integrity; 93% want them to be knowledgeable about the process; 93% want them to be responsive; 88% want communication skills, 83% want them to be able to negotiate and 46% mentioned technology skills.
  • The top three benefits Real Estate agents provided were: 61% said helping buyers understand the process, 60% said pointing out features or faults with properties, 48% said negotiating better terms, 47% said providing a list of service providers, 37% said negotiated a better price and 30% said shortened the home search.

Buying Real Estate is a unique purchase:  not only is it much less frequent than other purchases, it typically involves multiple steps, each offering their own challenges.  If you would like to discuss buying or selling or if you have any thoughts about this, please contact me.  Please look for Part 1.

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

Remember:  HIRE WISELY!  We are not all the same.

May 20, 2020

PA Governor Amends Covid-19 Executive Order:  Real Estate is Now “Essential”!

Since March 19, 2020, the PA Real Estate market has been in a form of suspended animation.  For those agents who followed the law, business stopped on a dime.  Properties that went “under contract” prior to that date were allowed to move forward although many municipalities and contractors were not willing or able to help complete the sale.  Even then, many of those owners were frustrated in their efforts to buy their “next home”.  Some ended up paying two mortgages.


Otherwise, agents were not allowed to conduct business “in person”, owners with “active” listings could not have actual showings and buyers could not visit properties to see inside.  Business could be conducted “virtually” which likely worked better with “under contract” properties since those prospective buyers had likely seen the interior of their intended purchase.  Properties that had been inspected were in the best position although getting to settlement had its issues especially if a municipal inspection needed to be done since many of those departments stopped doing business.


Owners still looking for buyers had issues.  Most buyers are reluctant, even in a competitive market, to make an offer without actually being able to see the interior.  Buying “sight unseen” happened but I liken it to “online dating” where someone tells or shows you what they want you to “know”.  What could go wrong?  At least that was better than going on a “blind date”!


While I respect different “business models” and understand that some buyers and sellers needed a “creative” solution to work past our being the only state where Real Estate was considered “non-essential”, buying “sight unseen” is risky.  For a few hundred dollars a buyer could use a property inspection as a way out.  While not intended as legal advice, it happens.  Some buyers cannot afford to waste any money so this may not have been an option for them.  What about a seller who risks this happening to them?  If the listing agent follows the rules, the property history may stigmatize the property if others thought there were issues with the house whereas the problem was really the buyer.


Fortunately, there is a new “dawn” albeit with some restrictions.  Some sellers and buyers will jump at the opportunity; others may choose to wait to see what happens.  How many are currently unemployed and unable to get financing?  How many sellers need to buy their “next home” and are not ready to compete or who feel that the “right one” is not yet on the market?  If possible, some sellers may want to get their house sold even if it means renting for a short time.  At least their purchase won’t be tied to a sale and they may be able to determine if they really like an area they were considering.


As I always say, you cannot “time the market” so I encourage buyers and sellers to determine what is in their best interests.  I am an experienced, trained and educated REALTOR and can offer the knowledge and insight to help you evaluate what is best for you.  Assuming that people follow the guidelines and requirements for resuming Real Estate activity, my hope is that PA continues to improve so that we can avoid a set-back.  Time will tell.  Either way, I can help you now or later!  I do suggest doing some planning and preparation so we can do an effective and efficient campaign when you are ready.  That could make all the difference.


In the meantime, please visit my web site, listen to my podcasts and read my blogs.


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


HIRE WISELY:  We are not all the same!

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