Nick & Trudy's Blog

West of Philadelphia Market update: Prices drop in last two months

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Tue, 18 Nov 2008 06:50:19 -0600

Until recently Pennsylvania was doing alright overall in regard to house prices and the Philadelphia area was not suffering along with the rest of the country with sliding prices. Yes, prices had leveled, listings were taking longer to sell and there were less buyers willing to make a decision, but overall this was an adjustment the market needed, to cool off after a very active period, with buyers being pulled into the market early by offers of easy financing.

These buyers have now suffered, and there is a gap in the market as later buyers are not ready to buy due to the new financing requirements of many lenders that buyers need increased deposits to put down on their homes.

What this has done in the last one to two months has been to slow the market down locally even more and put pressure on sellers to reduce prices. We have seen this over a longer period in markets with very high inventories, such as Lower Merion where price cutting has been going on significantly over the whole summer. But only in the last two months with the financial crisis deepening has it really reached across the board to most neighborhoods. We are seeing sales off about 33% and prices dropping by 15-20% or more in different townships.

Buyers are reluctant to make offers, waiting for price reductions rather than making an offer. Those houses that are selling are the ones that require little or no work and have been well maintained. New construction sites are offering large incentives to buyers who are qualified and able to move ahead.

So if you are ready to buy and have financing lined up, check it and make an offer. Why check your financing? Because lenders are changing the rules all the time, if you were qualified a month ago or even two weeks ago, you may not qualify right now. I had a buyer of a listing of mine be rejected by the mortgage broker after being given a pre-approval letter the day before. So keep checking with your mortgage company and reach out to others to make sure you have options, there is financing available with good credit and if you have some money to put down, with FHA loans it can be as little as 3% this year, in January that will increase to 3.5%.

Want something to do this weekend?

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Mon, 17 Nov 2008 19:37:08 -0600

If you like or love antiques and live close to the Main Line in Philadelphia then this weekend November 22nd and 23rd visit the Main Line Antiques Show and support Surrey Services for Seniors by attending. You also will have the chance to buy some great pieces and have the opportunity to listen to me as I give booth tours on both Saturday and Sunday at 11 am and 2 pm. the show is held in Mellon Hall at Valley Forge Military Academy and College, there is plenty of parking and a shuttle bus if the weather is chilly to take you from the parking lot to the show entrance.

There are a great collection of dealers with a wonderful mix of porcelains, jewelry, paintings, furniture and some 20th century pieces as well. You can access the show site at www.mlas.org for full details of dealers and photos from the 2007 show. There is a very nice preview party on Friday evening with a special rate for collectors 35 and under. But what helps the most is if you come and spend some money with the dealers who have come from all over the East coast to exhbit. My brother Paul Vandekar is coming from New York with a great collection of pieces which you can see more of at www.Vandekar.com. Paul exhibits at many shows across america including the HUP Philadelphia Antique Show which this year was held at the Navy Yard for the first time.

Hope to see you there.

Berwyn Devon Business & Professional Association launches First Fridays in Berwyn

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Wed, 05 Nov 2008 11:54:53 -0600

Steve Lake of TD Bank Devon, with Gina Galli owner of beadeologie in Berwyn and Linda Sticklin of Staging and Organizing based in Berwyn all members of the Berwyn Devon Business and Professional Association who helped me, Nick Vandekar with the distribution of flyers to members of the business community in Berwyn today announcing the launch of First Friday's in Berwyn beginning this Friday November 7th. Each month more shops, and restaurants will become involved as they see the growth and desire of customers to shop locally.

Already Surrey Services for Seniors will have their consignment shops open later, Beadeologie will hold a special class for those who wish to attend, Pattymacs will offer $10.00 off a dinner to those who mention it, Framestation in the Berwyn Station will be open and holding a special event for the evening. Easttown Library will during 2009 stay open and host special events.

I believe that First Fridays offer owners of the stores and businesses in Berwyn and Devon many opportunities to offer customers enhanced services such as seminars, tastings and a great night out. So stay local or come from afar and help our local businesses.

Now I can vote....

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Tue, 04 Nov 2008 14:33:43 -0600

Yes after living here for almost 19 years this will be the first presidential election in which we can both vote since becoming citizens. Now rather than being bystanders we are participants. I cannot understand those who feel they are not part of the process and refuse to vote allowing others to determine their future without a say.

As we have seen in the past few elections every vote counts and it is important to cast your vote even if you believe the election is already determined because until the votes are counted the result is not known for sure.

So with pride, both Trudy and I voted today and we hope you took the opportunity to cast your vote, if not you still have some time as it is only 3.30 and you can still vote today till 8 pm.

Berwyn PA First Friday

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Tue, 04 Nov 2008 06:29:28 -0600

The Berwyn Devon Business and Professional Association is helping to organize the start of First Friday events in Berwyn starting this coming Friday when various stores and restaurants will be open till 9 PM hosting special events to celebrate First Friday. As momentum builds more stores will participate.

More information can be obtained from Gina Galli of Beadeologie located on Lancaster Avenue in Berwyn telephone 610-240-7760.

Other events organized by the business and professional association can be found on their website at www.BerwynDevonBusiness.com as can details of membership and past events.

Quick Trip

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Thu, 30 Oct 2008 07:18:46 -0500

Well, I just got back from the UK after a quick trip to celebrate my mother's 80th birthday. Following my sister's death this year I wanted to be there for my mom. Trudy came with me and Jeremy our son who was in the Marines till June. It was a wonderful time visiting my neice who had twins just before my sister died and my nephew as well. We also got in one day to do some sightseeing as well.

We watched the news whilst we were over there, it was liking watching the news here, prices for real estate are expected to drop by 25% in the next 18 months, banks are collapsing with depositors money being lost. Many of the same loan products used here found their way into the UK market as well and 100% mortgages were common. Not anymore as owners are evicted and house prices fall renting becomes an option for many if they can find a tenant to ride out the storm.

The system for buying and selling in the UK is very different to the States with long chains of buyers and sellers being created, if there is a problem at the lower end of the chain it is felt throughout and deals can fall apart at the last moment as money stops flowing up the chain. Sellers and buyers love homes not involved in chains. I have not saeen these problems in Pennsylvania but maybe elsewhere this can be a problem.

There is no MLS and each real state company owns the listing, it usually is not shared between agencies, there is no buyers agency although some American companies are trying to introduce it. The agent represents the seller and can offer you the listings they have, not those that belong to other agencies meaning to find a home you have to visit several agencies to make sure you know about everything. Very different to the States.

What to do with antiques when selling a home?

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Fri, 03 Oct 2008 12:15:55 -0500

Photo courtesy of Earle D. Vandekar Antiques

When you have antiques in your home and want to sell your home what do you do with your antiques? Well it depends on the situation. Are you going to keep your antiques and move them? If so do they stay in the house or do you pack them up? Is this an estate, how many antiques are there, do you want to keep the antiques?

If you are keeping your antiques and this is simply a move to another house your next steps depend on the fragility of the pieces. If you have porcelains and other ceramics that are not in cabinets you may want to remove them from the home before allowing showings. Furniture and paintings are different as they are not so fragile. Other items that are small and portable you may decide to remove. In cases where collections are worth significantly more than the home, you may request the listing agent to be present at all showings as a precaution.

If it is an estate there are several steps. Firstly you need an appraisal for estate taxes etc. Secondly you need to decide what you will do with the antiques at this stage. Are you able to donate them to a museum? If the collection is important enough a museum may be willing to accept them with certain conditions. Preferably if this was the case in an estate this should be worked out ahead of time as donations to museums can take a long time to arrange and agree upon terms.

If you decide to sell the antiques the decision of what to do with the antiques and the house may be decided on location. If the home lends itself to an on-site auction and the number of antiques is sufficient it may be suitable to auction not just the antiques but the home as well. Even if the home is not auctioned, the antique auction can bring a lot of good publicity to the house enabling it to sell more quickly.

If the home does not lend it self to an on-site auction you need advice on where and how to sell the antiques you wish to dispose of. Not all items should go to New York for sale, but also not all items need be sold locally either. There are also alternatives to selling at auction, private sales can be arranged with other collectors, dealers or even museums for single or multiple important pieces.

I have advised several clients on the way forward, soome pieces being sold at local auctions, some pieces being sent to one of the major auction rooms in New York and even connecting clients with dealers who are willing to help the collector sell their collection over time through exhibitions. There are many options and each client has different needs depending on their situation.

For more advice or if you have a question feel free to contact me direct at Nick@VandekarTeam.com

Getting ready to buy a home.

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Thu, 02 Oct 2008 11:42:53 -0500

Buying a home is one of the largest financial purchases many of us will make in our lives. Even during this present situation there are things you can be doing to prepare yourself to buy a home.

Lenders at the moment, have tightened credit, and even if there is a rescue plan it is likely that some if not all of these lenders are going to working with much stricter guidelines. So you need to start doing several things to get ready.

America is a society that loves to spend money, but you need to use some restraint and start saving so you will have funds for a deposit and also for closing costs when you buy. Closing costs are transfer taxes, repayment of taxes the current owner has already paid, deposit of taxes that the mortgage company is going to pay on your behalf later, fees for recording the deed and a host of other fees related to your mortgage and your purchase. As one financial advisor said you need to pay yourself first and live on the rest.

On top of saving you also need to work at improving your credit score, pay all your bills on time, look at your expenses and cut back where you can so you are able to pay on time and also have funds to save. Do not over extend yourself with multiple credit cards switching funds around between cards. It is far better to use one card and only put on the card what you can pay off. As you pay your bills on time it will improve your credit score. As lenders are now using tighter credit controls, make sure you know your credit score and what is on your own credit report. Don't wait till you apply for a mortgage to discover there are problems. You can obtain a copy of your credit report form any one of the three main credit agencies for free once a year. You can obtain this online and it is well worth checking your report to make sure that all the information is correct, such as your address, accounts open under your name and what is due on each.

When you have prepared in advance it is time to make an appointment with a mortgage borker or banker and discuss what you can afford, and what you are comfortable paying. Often you can qualify for a larger mortgage, but you may not be comfortable with the monthly repayments. So make sure you discuss this with your proposed lender. They should also give you a good faith estimate that shows all the fees as well as the rate including all these fees. Often, unscrupulous mortgage brokers will hide fees, but they have to be disclosed on the good faith estimate. if you do not understand something ask, no question is stupid except the one not asked. And if you feel the broker or banker is going too fast ask him or her to slow down. Repeat back what you think they said to qualify you understand exactly what is being proposed. You should never have to pay for a pre-approval for a mortgage, if asked for funds in advance move on. Once you make a full application, you may have to pay a deposit, but this should be refundable at settlement and this may be used to lock a rate, pay for the appraisal for example. Some fees such as the appraisal you will have to pay and depending on the lender this may vary.

We had a client in the last year who had arranged a laon through a family member and when we looked it over we thought the fees were very high. We got another broker to look over the fee structure and he found $6000 of fees padded into the loan. Needless to say they obtained the loan from soneone else.

Only after all this when you know your price range are you ready to start looking at homes, and a good place to start is the internet, there are many good search sites such as www.realtor.com, and www.trulia.com for example just to name a couple. Our own brokerage has a search engine as do we on our own website that you can use to search for homes. This allows you to look without commiting and without being bothered by follow up. Sunday opens give you an opportunity to see some homes without pressure. It also allows you to see some agents in action and see if you clcik with any of them. Using a Realtor is the next step. A Realtor acting as a Buyers agent represents you and puts your interests above the sellers and even themselves because of the code of ethics they operate under. This is the difference between a Realtor and just a licensed agent. The code of ethics actually hold Realtors to a higher level than the law in many states.

For more information or if you have a question feel free to contact us.

Are you ready to move?

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Mon, 29 Sep 2008 10:01:29 -0500

Moving home always seems to be a stressful decision whatever time in our lives we make the decision for several reasons. But as we age, or if we have remained in a home for a long time much of the worry seems to be what to do with all the stuff.

It is not easy but the there are some simple methods to reduce if not remove the stress this "stuff" brings with it so you can be ready when it is time to move.

First you need to break the whole move down into manageable parts so it is not overwhelming. To begin with sort out what you have. If you have collections or antiques are you going to take these with you, give them to children, donate them to a museum or simply try to sell them? Do you have a catalog of these pieces and receipts for these items as well. If so this all needs to be organized, if it is not already, so that a plan can be implemented with what to do with each piece and so the pieces can be adequately insured. These are all small decisions. If selling you also need to know where you will sell what you have, some pieces can be sold at local auctions but better pieces may demand higher prices and therefore a better return for you by being sent to a major auction house in New York or elsewhere. If you need advice in this area please contact me as with my background in antiques both as a dealer and in auctions I can offer advice.

Secondly, the things you have held onto for years that are not worth anything and have no emotional value either, need to be disposed of. This can be done in several ways, from the simple dumpster, to calling someone who may see some value in it to take it away.

You need to decide what furniture you need in your new home, maybe you have large pieces and your new home will not hold such large pieces, maybe you just have too many pieces of furniture, again you need to decide what you will do with these. There are many charities that will give you tax receipts for unwanted furniture that will help others who are just starting out.

Are you going to use a mover or are freinds and family helping you? If using a mover get some reccomendations and ask for estimates. Many companies will estimate over the phone without coming to see what needs to done, avoid these, you need a representative to come and see what needs moving so you get an accurate price without surprises on moving day. Make sure all boxes are labeled, good moving companies will do this, but add your own labels if needed. Unmarked boxes often get left unpacked.

Obtain adequate insurance coverage for your pieces, if you have antiques check with your home owner policy or agent to make sure you are covered for a move so you dont end up with a problem later.

If you have questions, or need advice feel free to contact me at Nick@VandekarTeam.com. I have several contacts in move management services as well who can help with the whole process.

Have we reached bottom?

Nick & Trudy Vandekar (Long & Foster Real Estate Inc) — Sun, 28 Sep 2008 11:30:18 -0500

I attended the quarterly meeting of the Pennsylvania Association of Realtors in Harrisburg this week. One of the sessions was given by Lawrence Yun the chief economist for the National Association of Realtors and it was very interesting. Admittedly the situation right now is VERY fluid as each week seems to bring some news of another challenge to the economy and with the election ahead none of us truly know what lies ahead.

But Alan greenspan has said he believes that the bottom of the market will happen in early 2009, eight hundred economists have said they believe that the housing market will stabilise in mid-2009. Now recent events may push those forecasts back a little but how does that affect you in your market?

What came through very strongly is that all real estate is not just local, BUT very local. Just as the market can be different in Scranton to Philadelphia or Pittsburgh, it is different between Devon and Media or Exton and Downingtown. It can even be different between developments in a township. So the market is very local and depends on a whole host of factors.

What are some of these factors? Well determing the market is a matter of looking at regional statistics and then narrowing them down. As you may know, an appraiser wants to use stats from the same development where possible and only if these are not available will they look outside to support a price. So we may look at township, then local area and then development to see what prices are doing to truly know what the market is for your home.

Another point to come out is that whilst Pennsylvania has weathered the real estate storm fairly well with stable prices, stable employment and even employment growth, it has not remained unaffected. We have seen this over the last few months with prices dropping, sales taking longer and buyers being affected in their ability to obtain mortgages. Now it still has not affected us as drastically as Nevada, Florida or California where prices had shot up dramtically in previous years so the rebound may not be as dramatic either. It is all about postioning your self and your property correctly to take advantage of the current situation.

So it is ot easy to answer the question without knowing some details about your location. For more information about your home and market feel free to contact us.