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On the House

First-time buyers lift home sales

Today's real estate market certainly differs from the not-so-long-ago boom years. Sales volume is still down, for the most part, as are prices.

But the basics of buying and selling houses haven't really changed much. Properties at the lower end of any market move faster, so if you have a house to sell below $350,000 or are looking to buy one, go ahead.

A lot of first-time buyers are in the market. One reason is that they don't have to sell a house to buy one. Another is the $8,000 tax credit for qualified first-timers, now due to expire Nov. 30.

The credit has meant a lot to the current market. So far, more than 350,000 sales nationally can be attributed to it, although economists Kevin Gillen of Econsult and Patrick Newport of IHS Global Insight suggest that what it has done is shift to this year sales that would have occurred in 2010 anyway.

Though a lot of first-timers appreciate whatever part of the $8,000 they will be getting, others say the money is beside the point.

Jackie Dettrick will settle on her Penn Wynne house Nov. 9, in time to get the credit. But, she says, "finding the right house was way more important."

"With a mortgage close to $2,000 a month, that $8,000 won't even last me six months, it won't change my life, and, most importantly, it certainly won't pay my mortgage," says Dettrick, who bought the house with her husband, Mike.

In good times as well as slow ones, pricing a house properly for the market often means a quicker sale.

Patricia Martin's father died in December 2008, leaving her the house in Somerton he had owned for 54 years. It was a perfect starter home, about 1,000 square feet and with a garage.

After spending the winter clearing out a half-century of "stuff," as Martin put it, she had her real estate agent list the house for $174,900.

It was sold in 30 days after 31 showings. The successful buyer offered $174,900, but asked for assistance with settlement.

"The assistance was $9,000," Martin says. "Rather generous; however, I did not want to run the risk of having it on the [market] for a long time.

"I truly believe that having the right Realtor, pricing it right, and appearance is key," she says.

In any market, going without an agent can be iffy at best - although when homes are practically selling themselves, it is possible.

In this market, "for sale by owner" might not be the best move. But Lisa and Matt Portadin, who have to relocate from Collingswood to Boston, are giving it a shot.

"Our friends sold their house in Collingswood in just 27 days, and so they gave us the information and courage to do it ourselves," Lisa Portadin says, observing that "access to the Internet has made it easier."

Marketing for the house, listed at $273,500, is a combination of Internet sites, a yard sign, and fliers.

There has been lots of activity but no contract yet, Portadin says, since "anything under $250,000 is flying off the market."

"Over $250K has been sitting a bit longer."

 


Inquirer real estate writer Alan J. Heavens is the author of "Remodeling on the Money" (Kaplan Publishing). His columns appear Fridays in Home & Design. "On the House" appears Sundays in The Inquirer. Contact Alan J. Heavens at 215-854-2472 or aheavens@phillynews.com.

 

Comments   
Posted 11:02 AM, 11/04/2009
cityspaceestates
I agree with the above assessment: this really is a buyer's market. Also to note, by encouraging people to purchase their first home, they are helping to nurture the economy back to health. And with all the perks in place (the $8,000 tax credit, which has been extended for first-time home buyers till April 10, and repeat buyers will receive a total of $6,500, a new amendment which was made Wednesday last week) it will be easier for buyers not only to stay in their new homes, but also to build credit, and even purchase and maintain investment properties. And while it's true that the tax credit, in some cases, won't last various home buyers, its the fact that any house in one's possession is a huge asset; and in this market, significantly appreciate, if we are, in fact, experiencing the tail end of the housing slump. I work for a relatively new company called CITYSPACE. We've been trying to educate neophyte and veteran home buyers on the present state of the market, with healthy community development in our sites. You should check out our web site at www.philadelphiarealestatehub.com. I'll be looking forward to reading more posts like these. Thanks for the update, Al.
1 comments
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