Vol. 5 No. 2, February 2008
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The Price is Right…
But is it the right time to buy a home?
The nationwide real estate slump that’s caused a decline in prices has also presented a real opportunity for buyers.
Is the time right to buy? If it is, what’s the right price?
House Hunting
Let’s start with the fun part: looking for a house. While you might fall in love with one place, it’s essential to shop around, because it gives you leverage with sellers.
Take notes (location, neighborhood, square footage, lot size and amenities, and, oh yes—price). Look at “comps,” or comparable homes in the area, to discover whether a home is reasonably priced for the neighborhood; if it’s higher, what amenities set it apart? If it’s lower, find out why. Sometimes there’s something wrong with the house; other times the owner will price low to sell quickly.
Price Points
Information is ammunition. Study the pros and cons, and find out if you have a motivated buyer. If you really like a house, make a reasonable first offer. It’s rare that someone would accept an offer more than 20 percent below asking price. If you low-ball, the seller might not counter-offer, which is your goal. If you have to re-bid without a counter, your leverage has significantly decreased.
Add two important contingencies: the house must pass inspection by an independent professional inspector, and (unless you’re paying cash) you get adequate financing from your lender. If the inspector finds something seriously wrong and the owner won’t fix it, submit a new counter-offer and discuss the situation with your lender. Haggle if you must. In some instances, your lender may not approve a mortgage on a home with serious deficiencies.
Even if your offer is accepted and you’re headed toward closing, you’re not out of the woods. No deal is final until your lender actually commits to your loan. Meantime, someone else can come in with an offer to trump yours.
You can then re-bid up, but don’t be afraid to walk. There’s always another house out there.
Negotiating Tactics for Homebuyers
• Don’t accept the first offer. The owner may worry he’s priced it too low and re-price higher.
• Don’t be calm. Flinch when you first hear the price. Appear shocked and dismayed. Staying calm can work against you when you want the best price.
• Put the squeeze on. Tell the seller, “You’re going to have to do better than that,” then shut up. A better price could be forthcoming.
• Never offer to split the difference in any negotiation. Let the seller do it, then split the difference after splitting the difference. That way, you win.
• You really want the house? Save one small concession for the end to give everyone the feeling they won.
BY DESIGN
To make a small bathroom seem larger, use a light-colored paint on the walls to better reflect existing natural light, then add colorful accessories—towels, a throw rug, framed art, flowers—to introduce deeper or more vibrant tones. You can also add mirrors for an illusion of spaciousness, but don’t overdo it. Wall-to-wall mirrors that reflect back the entire room just confuse the eye (and besides, few of us are prepared for a full-length view each time we step out of the bath!). Finally, choose a clear-glass shower door or tie-back shower curtains for more openness.
REAL ESTATE 101
Q&A with Shari Tomasini, Sellstate Innovative Realty LLC
1) How do you determine if it's a buyer's market or a seller's market?
It’s simple supply and demand. If there are more houses for sale than buyers, it’s a buyer’s market. If there are more buyers and fewer houses, it’s a seller’s market. A seller must be more flexible about price in a buyer’s market.
2) How do you make the initial offer on a house?
Approach your initial offer by doing your homework on the value. Determine real market value based on comparable sales of similar houses in the same general location within the last 60 days. Then make an offer. A realtor with great negotiating ability is essential. Personally, I’d offer below-list price right now, to allow room for further market correction.
3) How important is the home inspection? How do you find a good inspector?
A home inspection is extremely important and strongly recommended! The best resource is your realtor or referral, but shop around and compare before hiring to determine services and guarantees. To eliminate any problems, sellers can also have the home inspected before selling.
OPEN HOUSE
Woods at Blue Heron Pines: close to everything, away from it all
The clubhouse at The Woods at Blue Heron Pines is a study in comfort. The look is pure Arts and Crafts, with a wide-open great room, wooden floors and cabinets, a two-story barrel ceiling and big banks of windows that let the sunlight pour in. Oversized leather sofas, caramel-colored walls, simple polished tables and fat pottery lamps complete the cozy Craftsman look.
Residents clamor to book private parties at the clubhouse, which also features a billiard room, fitness center and business center. Outside, there are two pools (one with a fountain) and a cabana house for summer.
But of all the benefits of living at this six-year-old, 330-unit Galloway apartment community, the most important is—you guessed it—location, location, location.
The Woods at Blue Heron Pines is tucked between the rolling Blue Heron Pines Golf Course and a wooded preserve. For residents, that means utter peace and quiet just minutes from the hurly burly of the White Horse and Black Horse Pikes, the Expressway and Atlantic City. Hamilton Mall is close by. Cherry Hill and Philadelphia are an easy commute away.
The community’s website touts its “luxury, lifestyle and convenience.” It lives up to those claims, says property manager Norma Meyer, who lives on the premises.
“You definitely feel like you’re living in your own home,” says Meyer. “From my patio overlooking the woods I watch the birds. It’s just spectacular, and very serene. I have a family above me, and I rarely hear them.” Each apartment has a private entrance and garage with direct access.
“We are considered low-density, with just six units to the acre,” says director of property management Anne Macy, who adds that the apartments are “beautifully contemporary, with free-flowing floor plans, nine-foot ceilings, electric fireplaces.”
Kitchens feature pristine white-on-white appliances, 42-inch cabinets for maximum storage and a dove-grey breakfast bar.
Says Meyer, “The bathrooms are so large, you could comfortably put a large piece of furniture (armoire, sideboard, vanity) in there—it’s like having an extra room.” Bathrooms also include garden soaking tubs for luxurious lolling.
The one-to-three-bedroom apartments rent from $1,295 and are up to 2,226 square feet. Short-term leases are available.
“We have all the amenities with none of the maintenance,” says Macy. “Best of all, we have these unique surroundings. There is no other community in South Jersey so convenient to everything, but with the luxury of overlooking a golf course.”
