by rtdosen | Jun 15, 2015 | Ryan Dosen Real Estate Articles
Less Than Two-Thirds of Real Estate Contracts Settle on Time By Ryan Dosen According to a recent survey, the National Association of Realtors (NAR) is reporting that less than two-thirds of real estate contracts actually settle on time. When selling your home, getting a signed contract is the first and most important hurdle to cross. However, many potential pitfalls await after this key first step. Selling a house can be like navigating an obstacle course, so it’s best to know what you could be facing and to be well-prepared and well-represented. Delayed or Terminated Contracts “In the past 3 months, think of your most recent sales contract that either went into settlement or terminated. Please explain how the deal concluded.” This request was recently made of over 1500 Realtors in an effort to determine what types of issues agents are facing and how often settlements are being delayed or even terminated. Answers to this question have remained fairly consistent this year. NAR is reporting that approximately 26 percent of contract settlements were delayed, while 10 percent of contracts were terminated. Contract Problems NAR’s survey revealed that about 60 percent of real estate contracts faced some sort of problem while progressing toward settlement. Many potential problems were uncovered, but the usual suspects remained the most common. Financing The most common problem faced by Realtors related to financing. 12 percent of agents reported issues settling a contract due to difficulties with buyers obtaining financing. In Pennsylvania, agents are required to have their clients complete a Buyer Financial Information (BFI) disclosure. The BFI is a form of agent...
by rtdosen | Jun 8, 2015 | Ryan Dosen Real Estate Articles
Chester County Townships Fare Well in National Ranking By Ryan Dosen The Pennsylvania suburbs, specifically those in Chester County and Montgomery County, rank among the very best places to buy a home in America. The exciting news is brought to us by Niche (http://www.niche.com), a large content start-up that specializes in providing students, families, and professionals with helpful information for choosing a neighborhood, college, or school. Factors for Ranking America’s Suburbs Niche considered 11 different factors when comparing America’s suburbs. The factors receiving the most weight (12.5 percent) were home value to income ratio (the ratio of the median home value to the median family income), median home value, monthly housing cost, monthly housing cost to income ratio, and percentage of residents aged 25-44. Other factors of note included education grade (10 percent), crime and safety grade (7.5 percent), and median effective property tax (percent of the median property taxes paid on homes over the median home value). According to Niche, “a high ranking indicates that a suburb attracts residents with a good housing market where property taxes and housing costs are in line with value.” The Top Suburbs in America Pennsylvania is home to 16 of Niche’s top 60 suburbs and Chester County actually features 5 of Niche’s top 60 suburbs. One of fifty states having over 25 percent of the top places to buy a home is pretty impressive. Even more impressive is the concentration of top spots right here in our backyard. West Conshohocken, Montgomery County, PA (Ranked 1 of 3,238) West Conshohocken, PA is ranked by Niche to be the top...
by rtdosen | Jun 1, 2015 | Ryan Dosen Real Estate Articles
Radon: The Silent But Very Manageable Killer By Ryan Dosen Radon gas poses a real, yet easily managed threat to homeowners and homebuyers in Pennsylvania. However, the threats posed by radon gas, as well as the means for dealing with elevated levels of radon gas are often misunderstood by the general public. To help clear up the mysteries surrounding this silent killer, I sat down with local home inspection expert John Kerrigan of Reliable Home Inspection Service. What is Radon? Radon is naturally-occurring, odorless, tasteless gas. The Pennsylvania Citizen’s Guide to Radon states that radon “comes from the natural decay of uranium that is found in nearly all soils. It typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. ” As radon moves up from the ground into your home, it can get trapped inside, where it can build up over time. Therefore, whether new or old, or with or without a basement, any home may have a radon problem, depending upon the soil upon which it sits. The Environmental Protection Agency (EPA) estimates that radon causes about 21,000 lung cancer deaths per year and recommends remediation if radon levels are 4.0 picocuries per liter (pCi/L) or higher. Sub-4.0 levels are still said by the EPA to pose a risk, and in many cases may be reduced using radon mitigation systems. Testing for Radon If you are buying a home in the State of Pennsylvania, there is a designated section of the standard Agreement of Sale reserved for invoking the right to do a due diligence...
by rtdosen | May 25, 2015 | Ryan Dosen Real Estate Articles
It’s a Seller’s Market–Not a Name-Your-Price Market By Ryan Dosen Speaking at the Residential Economic Issues & Trends Forum at the Realtors Legislative Meetings & Trade Expo earlier this month, National Association of Realtors, or NAR, Chief Economist Lawrence Yun laid out a generally positive forecast for the economy and real estate market. Based upon Yun’s projections and other important economic data and market indicators, we expect to see a strong housing market that continues to outpace last year’s market, leading to an even stronger 2016. Small Slip in April NAR reported on Thursday that “despite properties typically selling faster than at any time since July 2013, existing-home sales slowed in April but remained above an annual sales pace of five million for the second straight month.” Yun’s takeaway from the 3.3 percent decline in total existing-home sales was that the setback was “the result of a lagging supply relative to demand and the upward pressure it’s putting on prices.” Empowered Sellers and Stubborn Buyers Indeed, we are still seeing frustratingly low inventory numbers in many of our local areas. We are also seeing many situations where sellers, apparently feeling empowered by the low inventories, are pricing their homes too aggressively. Many areas certainly are seeing seller’s market conditions. However, nowhere are we seeing “name your price” seller’s market conditions. There are lots of buyers out there and many aren’t even in deal-only mode. They are willing to pay market price for a home. That said, few buyers in today’s market are willing to overpay for a house. NAR reports that inventories were up 10.0 percent at the...
by rtdosen | May 22, 2015 | Ryan Dosen Real Estate Articles
The Appraiser’s Party Foul By Ryan Dosen When we were young, my brother Chris and I collected sports cards. My parents encouraged it somewhat, as it seemed a better use for report card money than candy or plastic toys. The cards at least had some hope of holding future value. We subscribed to these monthly price guides that would tell us the supposed value of the cards, and we believed the guides. We had nothing else to go on. I mean, these were ancient times. Before eBay. One day I was telling my father about all these “valuable” cards I had and he asked me how I knew that they were so valuable. I quoted him the guide. He said, “Son, something is only worth what someone is willing to pay you for it.” Eventually the Internet came along, and message boards came along, and we quickly found out that Dad was right and that our cards were worth far less than we thought. Fast forward to today. Shift your focus from the baseball card market to the real estate market. And now kindly stand on your head. The Home Price Perception Index Quicken Loans’ Home Price Perception Index (HPPI) tracks the difference between appraiser opinions and homeowner perceptions of home values. The most recent HPPI revealed that “homeowners rated their home values higher than appraisers did for the third straight month, with the gap widening to 0.69 percent from 0.4 percent in March.” While it may not be particularly surprising that homeowners think their homes are worth more than they actually are, that’s not where the story gets interesting,...
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