R5Realty News and Notes

Market Snapshots and Commentary on Value and Quality of life along the former Main Line of the Pennsylvania Rail Road, up until recently called the R5 Line, and now officially known as the Paoli /Thorndale line. R5Realty runs from Center City Philadelphia through the walkable, Westward outlying Towns & Townships.

Wednesday, October 26, 2011

Low Balls are Long Shots in Western Philly Burb

Clients house-hunting in the Bryn Mawr to Wayne area recently asked if I knew of any properties listed at $500,000-$600,000 that could be bought for $385,000. In 2006 this would have been an absurd question..
But given the 2011 buyer's market and the National Headlines, it's completely fair. Frankly, not to ask would be akin to ignoring the Purple Elephant tap-dancing in the middle of the room.

So: Can you buy a single family home priced at 500k at more than 20% off list price on the upper Main Line? My gut reaction was No, but it'd be a damn shame to miss out on a great deal because my gut was incorrect.So I ran the numbers - for Radnor Township at least - and it turns out the gut was indeed correct this time.

Sellers of 500k-priced single homes in Radnor Twp. are definitely Not accepting low-ball offers which are greater than 20% off list price. In fact, in the past 18 months,  nearly 60 Radnor Township singles have sold between 300-400k, and only 1 sold at a 20% discount.  And  that sale was a cash deal for an investment, fixer-upper property that was eventually flipped and sold for more than $550,000.
On average, nearly all the sales in this price range and class in Radnor Twp. were discounted only about 6-8%, which is in line with common historical averages for typical List Price to Sold Price ratio.

Bottom line, is that  to pry a $500,000 single from a Radnor Twp seller of late, you would need to spend between $450-$475,000. We're very willing to write up a low-ball offer and couch it in terms that won't alienate a seller, but the odds of it coming to quick fruition are about one-in-a-hundred based on the figures indicated below.

What's a bargain hunter to do? Focus on a particular market, and begin watching homes that are significantly above (+20%) what you are willing or able to pay. Develop a relationship with a Realtor who monitors your target market daily, so he/she can alert you to price reduction as soon as they appear. By watching and waiting as Sellers come-down gradually in list price, you can be poised to strike once the price is within about 10% of your Final Buy Number.

Deep discounts happen, but they evolve over  time and are not coming in one big low-ball bite.

Discount Off List Price: Radnor Twp Singles Homes Sold for 300-400k Past 18 Month
Single HomeTownBedBathLast PriceSold Fordiff%off
580 Sinkler DrWayne42$415,000 $335,000 80k20.0
9 Radnor WayWayne42.1$400,000 $345,000 55k13.7
644 S Devon AveWayne42.1$359,900 $320,000 40k11.1
534 Sproul RdVillanova42.1$420,000 $385,000 35k8.3
939 Glenbrook AveBryn Mawr41.1$339,000 $307,650 32k9.4
307 W Eagle RdWayne31.1$360,000 $330,000 30k8.3
117 Fairfax RdRosemont31.1$389,000 $360,000 29k7.4
343 Sugartown RdWayne62$375,000 $347,000 28k7.4
413 S Devon AveWayne42.1$409,000 $382,500 26k6.3
4 Harrow CirWayne42.1$425,000 $400,000 25k5.8
108 Barcladen RdRosemont42$375,000 $350,000 25k6.6
101 Quaker LnVillanova43$399,000 $365,000 35k8.7
123 Lowrys LnRosemont51$399,999 $375,000 25k6.2
1553 County Line RdBryn Mawr32$359,900 $335,000 24k9.4
412 Grange RdWayne31.1$399,000 $377,000 23k5.7
344 Rockland RdWayne32.1$387,900 $375,000 13k3.3
338 Overhill RdWayne41.1$410,000 $390,000 20k4.8
589 S Devon AveWayne52$399,000 $380,000 19k4.7
446 Upper Gulph RdRadnor42$399,000 $380,000 19k4.8
162 Morningside CirWayne41.1$384,000 $365,000 20k5.2
347 Oak TerWayne32.1$420,000 $400,000 20k4.7
100 Morningside CirWayne41.1$319,000 $300,000 19k5.9
445 Iven AveWayne42.1$399,000 $380,000 19k4.7
119 Fairfax RdBryn Mawr31.1$410,000 $392,500 18k4.3
3 Rockland CirWayne31.1$399,000 $382,500 17k4.3
110 Petrie AveBryn Mawr51$375,000 $360,000 15k4.0
125 Fairfax RdWayne32$415,000 $400,000 15k3.6
614 Kirsch AveWayne41.1$373,000 $358,000 15k4.0
129 Fairfax RdBryn Mawr32$364,900 $350,000 15k4.1
149 Eaton DrWayne42.1$349,900 $334,900 15k4.2
121 Debaran LnBryn Mawr32.1$410,000 $395,000 15k3.6
170 Wentworth LnRosemont22.1$349,900 $335,000 15k4.3
241 Barcladen CirBryn Mawr31.1$330,000 $318,000 12k4.0
1565 County Line RdBryn Mawr32$324,900 $315,000 10k3.1
112 Locust Grove RdBryn Mawr42$379,900 $370,000 10k2.6
13 Devonwood RdWayne32$399,999 $387,500 11k2.7
2 Black Friar RdBryn Mawr32.1$359,000 $350,000 9k2.5
131 Conestoga RdWayne41.1$379,000 $370,000 9k2.4
2 Beatrice DrRadnor31.1$399,999$394,000 6k1.5
7 Devonwood RdWayne42$373,000 $370,000 3k0.8
127 Barcladen RdBryn Mawr31$347,500 $344,000 3k0.9
37 Devonwood RdWayne42$349,000 $349,000 00.0
236 Barcladen CirRosemont31$380,000 $390,000 00.0
172 Brooklea RdRadnor31.1$319,900 $320,000 00.0
78 Oakford RdWayne52.1$349,000 $349,000 00.0
334 West AveWayne32$372,000 $372,000 00.0
304 Rockingham RdRosemont32$360,000 $360,000 00.0
201 N Wayne AveWayne32$375,000 $375,000 00.0
520 Crestview RdWayne42$360,000 $360,000 00.0
133 Fairfax RdRadnor31.2$374,500 $378,000 00.0
101 Drakes Drum DrBryn Mawr32.1$399,000 $399,000 00.0
17 Longwood DrWayne42$370,000 $370,000 00.0
428 Saint Davids AveWayne32$320,000 $325,000 00.0
603 Kirsch AveWayne42$339,900 $339,900 00.0
207 Highland AveWayne31$385,000 $385,000 00.0
11 Rockland CirWayne31.1$360,000 $365,000 00.0
365 Sugartown RdWayne32.1$325,000 $326,000 00.0