Kristin's Advice Column
Homebuying and selling in this unpredictable market can be a frustrating and confusing process. Kristin Daly and her dedicated staff understand how to help our clients make sense of the trends and avoid the pitfalls. We will be posting advice for everyone's benefit on these pages and in our newsletter, "Your Philly Realty Connection."Networking for real estate: Our local and national approach!
Fall 2011The market changes on a minute by minute basis, and many of these changes are due to split second interactions online, over the phone, and through various networking groups. We appreciate the opportunity to keep in touch with our clients and partners all over the nation. If we're not connected now, let's reconnect! Here are our current hot topics in networking:
- Linkedin.com - From a polished profile page to connections and updates, we work on brokering our sales through our over 500+ connections on this professional networking site. We welcome the opportunity to connect!
- Contributions to online Groups - Whether it's an investor group or a new home buyer group, we contribute as much as possible to educate our audience and potential buyers and sellers about value, content, process, and return!
- Facebook - Personally and professionally, we expose our listings to thousands of accounts and promote them in unique ways through this social media.
- Our own Newsletter - As you can see, we want to know what's going on with you and how we can be of service.
Selecting Representation: What to look for in your Real Estate Agent!
December 7th, 2010
You are waiting until after the holidays, and then...you are going to BUY...or SELL...or BOTH! The Spring market can start as early as mid-February! Now is a great time to think about who you would like to work with on your real estate project and why. Consider discussing the 10 following topics with your selected real estate professionals:
- How do you manage a client relationship and how does your approach differ from that of your peers?
- What kind of year did you have in 2010? What types of transactions are you working on now?
- How do you communicate with your clients?
- What recommendations do you have for me over the holidays?
- Give me examples of surprises you have seen in recent transactions so I can avoid them.
- Who would you refer me to for financing and why?
- How do most of your clients find you?
- Are you a specialist or a generalist? What types of transactions do you like to work on most?
- How should I best prepare my project for sale?
- How do you stay informed and up-to-date on City and Industry knowledge?
Finding your Perfect Home & Finding its Imperfections: Ask the Right Questions before you buy!
August 25th, 2010
On the surface, this property appears to be a perfect match for you! But is it, really? Dig deeper with your Real Estate Professional to ensure you are buying a property history that is as appealing as its interior and exterior! Here are some good questions and scenarios to consider as you move forward:
- Do the current property owners owe any taxes on the property? This info is easily accessed through the Bureau of Revision of Taxes (BRT). Any offer you make should include the contingency for the Seller to pay off these taxes by settlement.
- If buying new construction or a rehab, have the owners submitted a tax abatement application to the BRT? If yes, what is its status? Has it been sent to the Department of Revenue for review and approval? It may take 6 months or longer to approve a tax abatement, so it may not be possible to deliver the approved abatement by settlement.
- Are there any City violations on the property or liens filed? Request a City Certificate or the Use and Occupancy Permit to review for any violations. You will want to make offers contingent on the Seller satisfying any violations that appear by settlement.
- For new construction or renovation work, you may want to request copies of the building permits filed for the projects, for your records, and for the peace of mind that your property has followed proper guidelines for development.
- Take advantage of all warranties, including Builder Warranties that cover all major systems of the home and water penetration. Obtain a roof warranty, typically good for 15-20 years. If buying a resale, you or the Seller can easily provide a $400 home warranty at settlement that will cover appliances and many repairs with a small deductible.
How to Stay Cool in the Summer Market!
July 29th, 2010
With temperatures at or above the 100 degree mark, distracted buyers are at the shore on vacation seeking relief from the heat. Unfortunately, they may likely be far away from your City property listings and potentially great summer deals! Here are some tips to help you stay focused on your real estate goals this summer, whether you are buying or selling.
For Buyers:
- Maintain a close relationship with your real estate professional and communicate when you will be away in advance. This will allow you to compare schedules and coordinate time to review the market together. Depending on travel schedules, this may need to be done months in advance!
- Take advantage of your flexibility during the weekdays. Are you free in the early morning hours before work and when the afternoon temperatures soar? Are you free over the lunch hour to review the market? How about meeting in the evening, from 6-8PM? Extra effort during the week will allow you to stay on top of your real estate goals and allow you to enjoy your weekends in the sun!
- Acknowledge your leverage at this time. If you have your eyes on a particular property, what are you waiting for? Sellers would be happy to entertain offers, and you can use the slower, summer market to your advantage to get a great deal on a property. Settlements are already lining up for September and October, so keep in mind you can still take that August vacation! You have nothing to lose. Make that offer!
For Sellers:
- Conduct a thorough listing review and market update with your real estate professional. Closely review the feedback from showings and understand the competitive market for your property. How many similar properties are on the market right now? What are the strengths and weaknesses of yours versus the others? How many similar properties have sold in the last month or two? At what price did they close?
- Emphasize your property's strengths and take action to handle any obstacles that may be preventing buyers from moving forward with your property. Does your property lack green space? Make sure you mention the location and proximity to parks and recreation areas in the listing description. Is your space small? Would adding a strategically placed mirror help buyers perceive an open the room? Does your property lack curb appeal? Add some eye-catching summer flowers to enhance the buyers' experience at their first showing.
- Consider initiating an offer to a buyer. You know who they are: they've seen your property three, maybe four times; they've brought their parents in from CT, MA, TX, or wherever, to look at it and offer a second opinion; and they linger at open houses. Rather than waiting for them to make the first move, take action, and make them an agressive offer!
Take a closer look: Managing your Property Inspection!
June 25, 2010
You've scoured the market in your price range, you've haggled with the other party over price, dates, and other terms, and now, you are under contract to buy it...or sell it! Consider the following key points to expect with your property inspection, whether you are buying or selling!
If you are Buying the property:
- Seek referrals to a qualified Home Inspector. Your friends, family, co-workers, and Real Estate Professional are great sources for these referrals. Consider at least 2-3 candidates with positive recommendations.
- During the Inspection, expect the unexpected and ask questions. No property is perfect, and there will likely be several items you will wanted to fix before or after settlement. If the property is new construction, all of these items, for the most part, should be completed by the builder by settlement or within 30 days of settlement. Pay close attention to the age of the roof, the condition and age of the major systems (especially hot water tanks and heating and air conditioning). Identify the source of any moisture or previous repair work.
- Determine what items are most critical for you to fix after the Inspection, in order to move forward with the transaction. In the "Reply to Inspection" Agreement, ask the Seller to fix these items or if preferred, offer you an appropriate credit for repairs after settlement. Also, consider a combination of repairs and credit!
- Consider ordering your own Home Inspection before you list the property. With the Inspection Report and a minimal investment of $360-$500, depending on the type and size of property, you will know in advance what any Buyer will likely find with their inspection.
- Repair any major items of concern after the home inspection that might affect Buyer interest in your property. Does the roof need to be patched or recoated with a protective coating? Does your heating system need to be cleaned and reviewed by a professional? Have your changed your filters lately? Addressing these items in advance will help create stronger Buyer confidence as you go under contract and move forward to settlement.
- Negotiate the "Reply to Inspection" Agreement wisely. Double check the Buyer requests for accuracy. Obtain your own quotes to ensure you are paying an appropriate amount for repair work or offering the appropriate amount of credit. Consider splitting the credit with the Buyer so both parties contribute to the forward movement of the sale. Ask what is critical to the sale and what is personal preference of the Buyer?
So, you wanna buy a condo!
May 28, 2010
There are thousands of condominiums in the Center City area, offering plenty of amenities, from balcony views, spas, and coffee shops to covering parking and gyms. With Kristin Daly, the sometimes complex process of buying a condo becomes much more straightforward. Here are several points you will want to consider when you buy yours:
- Page 7, line 427, in the Agreement of Sale, must be checked where it says, "Applicable: Condominium." This will confirm that according to the Uniform Condominium Act of Pennsylvania, the Seller must, "furnish Buyer with a Certificate of Resale and copies of the condominium declaration, the bylaws and the rules and regulations of the association."
- It is important to understand defining terms. A Certificate of Resale, also known within the industry as a "3407" is a document issued by the Association stating the Seller has no unpaid fines or assessments. The declaration, bylaws and rules and regulations consist of a set of documents, which could be hundreds of pages long, describing how the building is run, percent ownership and associated condo fees, and current and future financials of the Association. More current associations will provide these condo documents to Buyers electronically on a CD.
- Soon after agreeing to terms in the Agreement of Sale, the Seller will furnish the documents mentioned above, and according to the Uniform Condominium Act, and mentioned on Page 8, line 443, "Buyer may declare this Agreement VOID at any time before Buyer receives the association documents and for 5 days after receipt."
- Special attention must be given to shared common areas and building maintenance. Upon review of the condo documents, seek answers to questions about how these areas are managed, how much do they cost to maintain, and if there are plans to renovate or upgrade these areas over time. These areas can include the roof, grounds, and parking facilities. We may suggest to engage a real estate attorney to review the condo documents, too, in certain transactions.
- Financing condominiums can be more difficult these days, as the market has changed. Work with a local lender who has closed loans on condos in the building before to ensure for a smooth transaction. Our team can provide referrals to many qualified and reliable mortgage experts.
In short, the ammenities of condo living make the lifestyle very attractive. Work with Kristin Daly and her team to achieve it!
All About Timing
April 27, 2010
Timing during this unpredictable market is critical after helping clients conduct a thorough evaluation of their real estate options. Once our clients identify the property they want to buy, our team does not waste any time. We do everything to minimize competition and work quickly so that our clients can purchase their ideal property without skewing their pricing strategy. We keep the following dates in mind for our clients as we progress toward the purchase:
- Date of Initial Offer. Depending on demand, we may meet early in the morning or late at night to draft an offer on a desired property with our client.
- Date of Acceptance. We want to gain acceptance on any offer by both Buyers and Sellers quickly and efficiently to increase security of the agreement.
- Settlement Date. In a Buyer's market, clients may want to suggest a settlement date within 30 days, as the Seller may likely see this as an attractive settlement date.
- Inspection Contingency Date. Within 10 days of receipt of the fully executed Agreement of Sale by both Buyer and Seller, we will help our clients conduct an inspection and agree to any repair or credit.
- Mortgage Commitment Date. The Mortgage Commitment is an actual document or letter issued by the Buyer's lender which guarantees the Buyer's loan. This is a very important document to the Sellers, as it helps stabilize the agreement as it moves closer to settlement. Upon receipt of the signed Agreement of Sale, it is a good idea for Buyers to start sending the lender all pertinent information (W-2's, pay stubs, gift letters, bank account statements) so that this commitment date can be met.