Buyer and Seller "Don'ts"

It is tough to get to closing these days.  I previously blogged about the lender obstacles, but Money magazine points out the difficulties caused by buyers and sellers having unrealistic expectations.  This chart dispels the myth that you will get the property for far below asking.  

Here are a few of the key "don'ts":

Don't say: "I'll pay 85% of your asking price and not a penny more."

Instead: Look for homes that are fairly priced and make a reasonable offer. "Coming in about 10% below list is a good starting place for negotiations now," says Denver real estate broker Jeff Fogler. Yes, you have the upper hand in most markets, but the average homebuyer is paying only 2.7% below list price (see the chart). Set your expectations accordingly. You can always ask if the seller is willing to bridge a price gap in other ways -- for example, by picking up your closing costs (which can run $7,500 on a $300,000 house).

Don't say: "You're offering how much? Forget you!"

Instead: When bidders lob low-balls at you, thank them for their interest -- and ask that they come back with earnest offers. "If you become offended, enraged, or unreasonable, you've blown any chance at negotiation," says Warwick, R.I., real estate agent Ron Phipps. These days many buyers are just testing you to see how big a discount they can get. Point the bidder to comparable recent sales that support your list price. (Received several super-low offers? Check the comps to make sure your price isn't too high.)

Don't say: "I haven't put my own place on the market yet."

Instead: List your current home before you start shopping seriously for the next one. Because it takes almost three months to move a house these days, sellers are loath to write home-sales contingencies into purchase contracts. You'll have far more leverage if you've gotten rid of your house before you start negotiating: Sellers know there's less chance of the deal falling apart. (Prequalifying for a mortgage helps too.) What's more, you'll know exactly how much money you can put into your new digs.

The Church of the Assumption In Danger of Demolition

Plan Philly Photo.
I have often wondered what is happening with the beautiful church at 11th and Spring Garden.  Plan Philly featured The Church on it's website in an article about the possible plans to tear the building down.  Alan Jaffe describes the plans "Siloam, a social service agency for people living with HIV/AIDS, owns the church building and the adjacent rectory and convent.  It had sought a demolition permit for the church in order to rebuild on the site or create more parking space.  On Aug. 24, Siloam will go before Philadelphia Historical Commission to argue that it has not been able to find a buyer for the building and can't afford the cost of restoration"  Apparently it will costs upwards of $5 million to restore the building and interested buyers over the years have decided against the purchase because owners have dismantled many of the interior features.  Below are two more striking photos from the Plan Philly website.

Comprehensive List of Who to Call with your Philly Home Problems

The Bella Vista United Civic Association has a great list of phone numbers for neighborhood problems.

Problems (Who Can Help)

• General block cleanup
• Phila. More Beautiful 215-685-3969
• Overflowing dumpsters, illegal dumping, leaflets on doors & car windshields
• Environmental Response Unit of Police Dept. 215-686-3082
• Potholes or hazardous sidewalks
• Streets Dept. 215-686-5560
• Uncollected trash or recyclables
• Streets Dept. 215-686-5560
• Damaged mailbox
• U.S. Postal Service, Maintenance 215-895-8331
• Tree limbs in contact with electrical wires
• PECO emergency services 215-841-4141
• Gas leak
• PGW emergency line 215-235-1212
• Open fire hydrant, flooded intersection, trash in streams or abandoned car in river
• Water Dept. 215-685-6300
• Damaged bus shelter
• Outdoor Systems 215-568-5517
• Collapsed street due to water or sewer main break
• Water Dept. 215-685-6300
• Missing manhole covers (depending on whose manhole cover is missing)
• Water Dept. 215-686-3300
• Phone company 611 
• PGW 215-235-2050
• PECO 215-841-4141
• Public buildings that are firetraps or contain dead animals
• L&I 215-686-2463
• Dead animal in your house
• Streets Dept. 215-686-5560
• Rats
• Health Dept., Vector Control 215-685-9719
• Dog doo doo
• Environmental Response Unit 215-686-3082
• Broken traffic light or missing/broken street sign
• Streets Dept. 215-686-5560
• Broken street light
• Streets Dept. 215-686-5560;
• after hours call 215-697-8844
• Trash-strewn lot, abandoned/dangerous buildings, auto repair in public street
• L&I Services & Operations 215-686-2463
• Loud noise, oar and building alarms, foul odor
• Air Management Div. of the Health Dept. 215-823-7583
• Graffiti
• Phila Anti-Graffiti Network 215-685-9900
• Murals 
• Mural Arts Program 215-683-3689
• Abandoned car; call local police districts abandoned car officer
• For number in your neighborhood 215-686-3000
• Nuisance bar, underage drinking
• State Police Liquor Control Enforcement Squad 215-560-4111

Frozen Yogurt Shop Opening in Former Ritz Camera at 9th and South

It looks like a Berry Sweet Frozen Yogurt plans to open up in the shop formerly occupied by Ritz Camera.  I haven't been able to find any more details, but the shop should be a welcome addtion to the busy intersection.

Philly Has a Tool Library

The Greater Philadelphia Urban Affairs Coalition opened a shop in 2008 where homewoners can check out the tools they need to do basic home repairs and maintenance.  For just $20 annually members have access to over 2100 tools.  The Library is open evenings during the week and during the day on Saturday.  Check out their website and blog at http://www.westphillytools.org/.

CNN Model Does Remarkably Well in Housing Market Predictions

In 2006, CNN Money did a story ranking the top 299 housing markets according to how overvalued they were.  It could be inferred that those markets would see significant downward price adjustments these last few years.

Many Florida markets topped the 2006 list.  Las Vegas also ranked high on the list with a prediction of being overvalued about 50 Percent.  Florida and Vegas are now notorious for the steep housing declines that happened over the past four years.  In the 2006 report Philly was predicted to be overvalued about 15%.

This year CNN released new rankings showing the adjustments to the 300 or so markets and new average home values.  Many of the Florida markets did adjust down roughly the amounts they were predicted to be overpriced.  The same happened with Las Vegas.  Many Florida markets and Las Vegas are actually now undervalued.  Philly is also now on the undervalued list with a prediction of the market being undervalued about 3 percent.  The new rankings are great news, for many markets, if they are as good a predictor as they were in 2006.  While five years ago people would have been disappointed to be told their home values would only increase a few percent over the next few years, I think many Philly homeowners would now be happy with a slight increase in their home value.

 The new 2010 report did have bad news for homeowners in some markets.  As I blogged last week, attention is on Atlantic City.  This report predicted a 30% overvalue in its home values.  Ocean City, NJ was also on the list and predicted to be around 25 percent overvalued.

Philly Condo Market Booming

There was a large increase in condo sales during the last quarter.  The inquirer did a recent story on the Philly condo market in which they said "Condo sales in Philadelphia nearly doubled from the first quarter of this year to the second, and the numbers were better than at any time since the housing downturn began here in August 2007."

Most people think of first time home buyers as the one's buying condos in the big city, but in Philly, many of the new condo owners are retirees choosing Philly as the destination for their carefree years.