Courtesy Charter Homes
Smart people are moving now.”
Homeowners are itching to move, say Susquehanna Valley real estate professionals such as Charter Homes and Neighborhoods’ president Rob Bowman. After three years of hesitation and making do, they’re ready to make the plunge.
And luckily for them, area real estate is looking up. Sure, there are challenges, but with the right mindset and the right realtor, families might find that a home they truly love is just around the corner.
The Wait is Over
“Prices have come down, and the interest rates have come down, as well,” says Anne M. Lusk, Lancaster-based realtor for Prudential. “And I think people are sick of waiting.”
Ignore the gloom and doom from places like Florida and Las Vegas, says Lusk. “Las Vegas is a train wreck, but Las Vegas is going to be a train wreck for the next 15 years.”
Central Pennsylvania’s boring old stability is good.
“There are phenomenal homes on the market, and people are buying because they expect to be there the next eight to ten to twenty years,” Lusk says. “What better time to buy?”
The days when a home purchase was a buy-and-flip investment are gone, “and never should have been here in the first place,” notes Bowman, whose firm builds communities in York, Dauphin, and Lancaster counties.
Since the economy turned sour, many homeowners have compromised, holing up in homes that no longer suit their circumstances, he says. But it’s time to consider the advantages available in a perfect storm of real estate.
“When people look at the dynamics of the real estate market, sure there’s some bad news, but central Pennsylvania is by far a better housing market than most of the places we’re reading about,” Bowman says. “When people look at their options, between interest rates and housing values and improving their lifestyles, they’re getting what they want.”
For instance, first-floor master bedrooms are increasingly popular. Homeowners who don’t like their second-floor master bedrooms—and haven’t for the last three years—are saying, “I’ve had it. I’m done, and I’m ready to move,” Bowman says. “If they’ve got three kids in two bedrooms, they’re ready to move. If they’re driving 45 minutes to work instead of 25 minutes, they’re ready to move.”
Fears about doomsday scenarios shouldn’t trap people in unsuitable homes, says Joy Daniels, realtor of Joy Daniels Real Estate Group, Harrisburg. “You cannot just say this is how it is and have everybody fit into that mold. It’s a very personalized mold, and you have to look at your location, your home, your price. You have to take everything into the whole picture.”
The Right Location
Even in the worst of times, the old rule of real estate applies. As always, it’s location, location, location.
“People are becoming very practical,” says Bowman. “Most people want to be near where they’re living, where they’re working, where they’re playing. It’s easy to get to and clearly within their world.”
In Lancaster County, mid-range homes in some school districts, such as Manheim, are in short supply, says Lusk. “There’s not a lot of inventory in the $300,000 to $500,000 range,” she says. But beautiful homes are available throughout the county, and homes in the higher end over $300,000 are selling, she says. “Even sales from $500,000 to $1 million are doing well.”
In the Harrisburg-Hershey area, sales of higher-end homes “have slowed down,” says Daniels, but for the value-seeker, there’s a nice selection of townhomes.
“It really has to do with condition and pricing,” Daniels says. “Buyers want to feel like they are getting a deal.”
Charter Homes is opening neighborhoods around York, Lancaster, and Harrisburg, at carefully chosen sites, Bowman says. “We have to be in the right location, we have to be priced correctly, and we have to offer people the value and confidence of a new home.”
The Right Home
Do the drop-in prices and interest rates mean that homebuyers can purchase bigger houses? Or is it a way to buy nicer amenities?
Both, say realtors. It depends on what the buyer—first-timer, growing family, or empty nester—wants.
“I’m tired of saying historically low interest rates,” says Bowman. “You can’t go back 60 years and find interest rates like we have today. There’s nothing that affects affordability like the interest rates. People can buy the same house for less. They can buy more house for less. They’re really able to put a lot more into their monthly payment than they ever have been able to do before.”
Don’t be afraid to seek credit, but be prepared for whole new levels of red tape.
“There is a shining light,” says Lusk. “There are still banks willing to give loans. Are there a lot more hoops to jump through? Yes. However, money is still available.”
One client told Lusk he would love to buy a high-end home but assumed he couldn’t get a jumbo loan. “I looked at him and said, ‘Sir, you have an 800 credit score. You can get a loan.’”
Selling the Existing Home
Realtors don’t have magic solutions for selling an existing home in order to make the move to a new home. In large part, they advise attitude adjustment.
“What you’re doing is transferring equity,” says Bowman. “Even if you have to sell your home for less than you were hoping to sell it for, you’re going to buy a new home for less than you thought you were going to pay for it. You’re not buying low and selling high. You’re selling at a lower price, but you’re also buying at a lower price than you would have just several years ago. What people get caught in is that they want to sell high and buy low. I don’t know how you do that in real estate.”
When sellers understand that pricing to sell is in their best interest, “then selling their existing home doesn’t become much of an issue,” Bowman adds.
Price is “a huge issue,” says Daniels. Bridge loans are difficult to obtain for anyone but a homeowner with “significant equity,” so selling promptly is essential. Sellers shouldn’t overprice in the hope of getting a high bid or in the belief that the right price is negotiable. Those sellers “will end up sitting and sitting and sitting.”
“The buyer’s first question is always, ‘How many days has this home been on the market?’” Daniels says. “If it’s been on the market a while, they’re going to offer lower.”
Daniels’ tip for establishing an appropriate price: “You need to start thinking of this not as your home but as someone else’s. It has to be more of a business decision and less of an emotional decision, and sometimes that’s very difficult.”
Build new or move?
For some, real estate conditions mean that it’s time to consider building new instead of buying an existing home.
“What people don’t realize is that building new is also a good investment, even though costs are more,” says Lusk. “You get what you want.”
Calculate the costs of renovating an existing home to your liking, she adds. “If you don’t like the kitchen in an $800,000 home, the kitchen you want could be $100,000 or $200,000. You need to decide what’s important to you. Some people are perfectly happy moving into a home and not changing a thing. Other people have very specific needs and desires and wants. They’re going to spend a lot to get what they want, especially if it’s a 10- or 20-year stay.”
Daniels adds that low interest rates make new builds tempting, but she repeats the admonition about higher costs. “Construction rates are not going down. If someone is looking for a value they’ll get more value with a resale, but with new construction, they can get their selection and choices.”
Charter Homes’ new builds are attracting buyers “moving for better finishes,” such as stone countertops and wood floors, or those who want homes “that are designed in a way that’s timeless but really live differently,” says Bowman.
“I’m convinced we sell lots of new homes for natural light,” he says. “People are addicted to bringing the outside in. That continues to move people from older to newer homes.”
Charter’s homes that “live differently” are energy-efficient, so money isn’t “flying out the window.” They also feature efficient laundry spaces, family rooms integrated into kitchens, and “substantive islands in the kitchen.”
“It’s like 20-minute vacations,” Bowman says. “People don’t have lots of time to spend together. When they are in the home, we make it as easy as possible to find time together.”
Susquehanna-region homebuyers who choose to build new can do so with confidence, Bowman says.
“Most of the new home builders are local. In the past, a lot of people bought homes from builders who were here yesterday and gone today. People are carefully choosing their builder now.”
Making the Move
Even if your mind’s not made up about a move, realtors say they don’t mind sharing their time to help answer all the questions—and there are many—that affect the decision to buy or sell.
“We have an initial consultation and find that person’s goals, wants, and needs,” says Lusk. “Are they going to stay in this home five years, 10 years, or 20 years? Buying a house is just part of the financial picture. You really need to guide them and help them look forward and know what’s most important to them.”
Think ahead, she adds. Are more children possible in the future? Are the kids going off to college? Is retirement closer than you think?
“I find that even clients in their forties are saying, ‘Maybe I should make a purchase with a first-floor bedroom, because in twenty years, I won’t have to move.’ It’s just a different mindset than it was a few years ago.”
Market conditions impact the home-buying process, but don’t lose sight of the real reason for moving, realtors say.
“Everybody’s life changes, and time marches on,” says Lusk. “Yes, people want to look at purchasing a new home as an investment, and now is a smart time. But the fact of the matter is, the home is where you live, and people want to live in a place that fits their lifestyles.”
Or as Bowman puts it, “People want to love their home.”