Real Estate Information Archive

The news this year has been filled with reports of hurricanes, tornadoes, floods, and fires, each of which has resulted in untold loss of lives, homes, and possessions.  As we watch with horror the impact these disasters have on those affected, it is only natural that we ask ourselves,” Would I be able to sustain such losses?  Would my insurance policy cover the costs of rebuilding my Chester County PA real estate?

The National Association of Insurance Commissioners (NAIC)) recommends that you use your annual renewal notice or any improvements to your home as a reminder to touch base with your agent or insurer to recheck how much insurance you really need.  Do you have sufficient coverage for rebuilding and replacement? Amy Bach, executive director of United Policyholders, a consumer advocacy group, urges homeowners not to blindly trust that their home insurer has all the bases covered.

With fluctuations in the Chester County PA real estate market, coverage equal to the current replacement cost (excluding land), is advisable.  The first step in getting adequate coverage is to establish your policy’s dwelling limit. Your target number is the full-replacement cost of your home and its possessions. The dwelling limit bears no relation to your property’s market value, its appraised value, or its assessed tax value. And don’t mistake the cost of new construction for the cost to rebuild, which is more expensive because of factors such as debris removal and higher demand for materials and labor after a catastrophe,

(You can get a pretty good idea of what it would cost to rebuild your home by using an online calculator, available at sites such as HMFacts.com ($7) and AccuCoverage.com ($8).

It’s a good idea to purchase guaranteed replacement coverage, meaning the insurer will pay whatever it costs to rebuild your home with materials of like kind and quality, without deducting for wear and tear. Avoid actual cash value coverage, which pays only the depreciated value of your Chester County PA real estate.

Check also on your need for flood insurance, even if you don’t live near a body of water, since policies vary in their coverage of many types of water damage.

And lastly, it goes without saying that you need to update the inventory of your possessions at least annually since it is not only a record of the contents of your house and their value, but also a good indicator of whether you have enough coverage.

Each year around 65% of all household moves take place between May and September, so obviously you need to plan ahead if you’re moving to a new Chester County PA home this summer.

While the act of relocating a new place can certainly be exciting, there are, of course, challenges to be met, especially during a hot, busy summer season.  Although there are no foolproof ways to make the experience totally stress-free, there are, thankfully, actions you can take to make your “adventure” a more positive one.

Sage advice to heed includes:

• Plan ahead!  Contact moving companies or truck rental firms at least six weeks in advance if possible. Try to schedule your move for a weekday and at a time when traffic is less heavy.  . Make prior arrangements for the care of young children and pets on moving day—for their sake and yours!  Line up commitments from friends and family if you’ll need their assistance for the move.
   
• Be strategic about packing.  Gather necessary supplies and start packing early.  Whether it’s one room, one cabinet, or a drawer at a time, weed through what may be years of accumulation.  Decide what to donate to charity, give to a friend, recycle, trash, pack now, or keep handy until moving day.  Label boxes as to contents and intended room in the new Chester County PA home.
   
• Take care of logistics in advance.  Ideally, you should contact your future utilities provider at least two weeks before you move regarding turning on your electricity, gas, phone, cable, and internet before your arrival, if possible.  Contact any new school for a list of documents needed for registration.  Do not pack these materials away it’s better to hand carry them for easy retrieval.  If you’re going to need to spend a night in a hotel, make those arrangements early.
   
• Make life simple.  Keep all small parts labeled, in plastic bags, and all together in one box.  Likewise, take pictures of electronic hook-ups for future use.
   
• Consider the heat.  Dress appropriately, stay hydrated, and refrain from placing certain items in a hot truck—candles or wine, e.g.  Click here for tips on packing cleaning products and toxins.
   
• Stay calm.  Relax, whistle, smile, and anticipate the pleasure of living in your new Chester County PA home. 

If you’ve ever been involved in a theatrical production, you are well aware of the many hours of planning, practice, and preparation that precede the actual performance.  You hope to gain rave reviews from your audience and will thus be sure to put forth much energy and effort in order to do so.to be successful. 

In much the same way, you, as the seller of your Chester County PA home, have aspirations of wowing potential buyers with your stellar presentation and being rewarded by appreciative applause in the form of a quick sale.  Just practice the following script and stage directions for dramatic results…

The curtain opens on a tastefully furnished room with adequate, but not overcrowded, furniture.  There is ample room to walk between the moderately-sized pieces, and doors and windows are not blocked.  Flowers and bowls of fresh fruit add color and a pleasant scent.  Personal photos and memorabilia are not present, and the few paintings that adorn the walls contribute to the overall light and airy atmosphere.

ACT I:

• Clean, clean, clean and de-clutter even more!  Create an impressive stage set by buffing floors and washing walls. This is the time to donate, throw away, and organize the many items that take up too much room, distract from positive features, make your Chester County PA home appear smaller, and create a feeling of chaos.  Let your granite countertops, roomy closets, and ample cabinet space take center stage for potential buyers.

Intermission:

Audience members will now be milling about the area

outside your theatre, so be sure that you have taken steps to

make it attractive and appealing.

ACT II:

• Concentrate on stage lighting.  Wash windows, open curtains and drapes, illuminate darker spaces. Put away winter bedding, accessories, and area rugs. Bring in spring with soft colors. Consider investing in inexpensive staging items like towels, throw pillows, candles and table settings in lavender, yellow, sage green and pale blue.   

Final curtain:

Time to take a bow, accept the flowers, bask in the applause, and enjoy

the accolades. Your presentation has been a complete success, and you

 will soon be entertaining offers for your Chester County PA home.

If you're thinking about investing in a rental property, experts say low home prices combined with low interest rates make this the best time in years to become a real-estate investor.  Couple this with the increase in potential renters due to foreclosures and the recent shaky economy, and you may well decide to become a first-time investor in Chester County PA real estate. 

It isn’t difficult to get into the real estate investing world. In fact, it’s rather easy. But it does require being smart and dedicated—and avoiding easy-to-make mistakes. These tips for a first time real estate investor should be beneficial in helping you become more knowledgeable and competent in sidestepping common pitfalls.

• Tip 1:  Educate yourself:  Visit numerous online sites, consult with seasoned investors of Chester County PA real estate, become familiar with terms and jargon, investigate lending procedures, explore possible locations, and analyze your personal financial situation.  Carefully researched knowledge will keep unpleasant surprises at bay.
   
• Tip 2:  Formulate a plan:  Most experts advise first-timers to limit their initial investments to residential Chester County PA real estate (many recommend concentrating on foreclosures) and to know in advance how much of a “fixer-upper” they want to take on.  Predetermining preferred locations (think in terms of schools, insurance rates, job availability, taxes, amenities, etc.) is also essential, as is deciding whether you will manage the property yourself.
   
• Tip 3:  Get your ducks in a row:  Speak to potential lenders or even a financial planner about whether you have enough assets to handle the ups and downs that could come with investing. Even if you plan to rent out the property, count on paying the mortgage whenever there's a vacancy.  It’s certainly a good idea to get pre-approved for an investment property loan.  It’s also useful to line up individuals/companies who can take care of various maintenance needs before you need their services for your Chester County PA investment real estate.
   
• Tip 4:  Be patient, but persevere:  As the market recovers, finding the “perfect” property is becoming more difficult, but it is not impossible.  Once you figure out where to look, you’ll be able to find them more easily, and you’ll start making money!  Be forewarned: there will be numerous high and low points in your stint as an investor, but if you are confident about your plan and are determined to work towards it, odds are you’ll succeed!

Every article, video, and home-themed television show which deals with selling your Chester County PA home will contain oodles of information/suggestions/tips/hints/advice on how best to achieve your goal in a short period of time.  You already know that in a buyer’s market, potential purchasers can afford to be picky and that sometimes even a small “defect” can become a deal breaker, so you dutifully heed instructions to de-clutter, de-personalize, and de-emphasize anything that could be perceived as a negative.  You even bake cookies before an open house to provide a warm and welcoming atmosphere!

But….are you aware of the importance of eliminating, not just masking, all interior odors?  No, the answer is not to spray tropical-scented commercial products all around your Chester County PA home, for that is only a temporary fix and may even provoke an allergic reaction from a potential buyer.  There are, however, natural solutions to persistent smells of all types.  Making your house smell spring-fresh is a great way to invoke the buying mood this year.

Besides opening windows and letting fresh air flow freely throughout your Chester County PA home, there are many steps you can take to identify odor-prone areas and do away with the stench.  Read on:

• Use fabric softener sheets in linen closets, vacuum bags, and pillowcases.
• Take advantage of the fact that baking soda, unused coffee grounds, imitation vanilla, houseplants, tea tree oil, vinegar, cat litter, and a boiling of cinnamon and cloves absorb odors.
• Understand that potential buyers will open drawers and closets, inspect the freezer and refrigerator, tour the basement, look carefully at bathroom and kitchen fixtures and appliances, and check out washers and dryers.
• Treat your garbage disposal to rinds of citrus fruits every so often.
• Fight the smell of tobacco smoke smell with gusto!   Place small bowls of pine-sol or baking soda in the affected areas to absorb the odor. Often a heavy duty cleaning and wall washing will be required to stop the odor once and for all.
• Recognize the fact that erasing all pet odors is mandatory.  These are stubborn smells resulting from dander, bedding, and accidents, and they require diligence and sometimes even detective skills to find the source.  Click here for an effective (and eco-friendly) homemade urine stain and odor removal solution and procedure.

Rest assured that your fresh-smelling interior will appeal to potential buyers and hasten the sale of your Chester County PA home!

Whether you are thinking about leaving your because of employment, health, a desire for a change of scenery, retirement, etc., a move to a new location is not to be undertaken lightly and requires research on your part to be successful.  While most potential transplants are aware of the need to check out housing costs, air quality, job market prospects, available health care, specific amenities, and school ratings, not all fully comprehend the economic impact relocation may have on their lives.

Areas worth investigating:

• Moving expenses:  Inquire about an employee relocation package which covers all or part of the costs of your move.  Even if your new employer doesn’t offer any financial assistance, you might be eligible for partial reimbursement at tax time, which can definitely ease some of your financial stress. (Click here to see which expenses qualify.)  Remember to include the cost of your travel from your Chester County PA home, lodging, and food in addition to the cost of moving your possessions as you calculate expenses.  (Take advantage of sites such as www.Upack.com or Moving Guru.com to assist you.)
   
• Job market:  While you may have secured a well-paying job, what are the prospects for your spouse?  What is the salary range for that field?
   
• Transportation:  What is the cost of public transportation, fuel, tolls, and parking?  Will you require a second car?  What is the personal property tax rate for autos in your new location?
   
• Municipal fees:  Are there additional costs particular to your new municipality?  What is the average rate of utilities?  Are parks, playgrounds, and museums free?  Contact the Chamber of Commerce in your new city for this type of information.
   
• Overall cost of living:  Since you will need to compare the average cost of living you had in your Chester County PA home with that of your new surroundings, you will want to take advantage of sites such as Best Places for actual facts and figures related to food, housing, utilities, transportation, health costs, and salaries in each location.  For even more detailed information about these categories, you can’t go wrong with that supplied by Numbeo.com.

The purpose of real estate assessments is to fairly distribute a municipality’s tax burden among all property owners based on the market value of their property.  Chester County PA real estate is assessed (generally annually) so that the costs associated with area schools, fire and police protection, and other necessary services and infrastructure can be allocated in proportion to the market value of individual properties.

Even as property values are on the decline, property taxes are on the rise nationwide, and, according to the National Taxpayers Union, as many as 60 percent of properties across the country are over-assessed.

So what is the owner of Chester County PA real estate to do?  According to those “in the know”, there are steps you can take to reduce the assessment of your property’s value.  Since the evaluation process begins in the spring, you would be wise to begin to take action in the following ways now:

• Request Your Property and Tax Record: you can request copies of your tax records at any time to check for a poorly conducted assessment or misinformation. To obtain a copy of your property tax records, simply visit your local planning board.
   
• Don't Build:  Any structural changes to a home or property will increase your tax bill.
   
• Limit Curb Appeal:  in spite of strict guidelines for the actual evaluation process, the assessment still contains a certain amount of subjectivity. Thus, more attractive homes often receive a higher assessed value than comparable Chester County PA real estate that is less physically appealing.
   
• Research Comparable Properties: you have the right to know what similar homes and lots are being assessed for each year. (Check your municipality’s public records,)  If you see a major difference in the amount you are paying, it’s time to find out why.
   
• Appeal any Discrepancies in Your Tax Bill:  check measurements, location, property value, or structures of your home and lot. Take the time to legally appeal your bill and request that it be adjusted if you find errors.
   
• Investigate exemption eligibility:  many states offer generous property tax exemptions to both older homeowners and the disabled.  Certain military veterans and owners who install energy-efficient systems may also qualify.  It pays to check with your local tax assessor’s office for other exemption categories.

The bottom line.  Don't assume that your tax bill is set in stone. A little homework and due diligence can help reduce the burden.

On January 1, 2013 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill will be signed shortly by President Barack Obama.

Below is a summary of real estate related provisions in the bill as summarized by the National Association of Realtors:

Real Estate Tax Extenders

• Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
• Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
• 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012
• 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012

Permanent Repeal of Pease Limitations for 99% of Taxpayers

Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by three percent. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.

These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.

Capital Gains

Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return. After that, any gains above those amounts will be taxed at 20 percent. The $250,000/500,000 exclusion for sale of principle residence remains in place.

Estate Tax

The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index found that a full 36% of Americans would consider “strategic default”—another term for walking away from your mortgage—if they were underwater (owed more on their home than what it was worth).

Now that more than one in four American homeowners is “underwater,” I feel that it’s important for the community to know the truth about strategic default.

The truth is the foreclosure process carries with it credit issues, current and future employment challenges, issues with security clearance and possible debt collections.

That’s why it is vital to explain the 3 reasons why the term “strategic default” is misleading:

1. There’s nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage modifications, and refinance (just to name a few) that may keep you from foreclosure.
2. The waiting periods to apply for a new mortgage loan are at least five years less in a short sale vs. a foreclosure.
3. A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.

If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and our community.

If you have any questions about what steps you or someone you care about should take next, contact me today, [email protected] or 610-594-7268!

No, this isn’t just another timely spooky story, although it just may have to do with ghosts!  Be you a believer or a scoffer, the fact is that there are pieces of Chester County PA real estate on the market which are purported to be haunted and thus are more difficult to sell.  Known as “stigmatized” properties, these houses have the reputation of being haunted or are the site of a previous violent crime--and the perception of ghosts and gore is not easy to erase.

So what to do?  First, make yourself (and your Realtor) familiar with state laws regarding disclosure. Contact the PA Real Estate Commission to see if you’re required to disclose information about the stigma attached to your Chester County PA being upfront about your home’s paranormal guests or ghoulish histories is always the best moral policy.  

Then what?  Pay attention the appearance of your property—inside and out.  To minimize any thoughts of ghosts, your home needs to look spirit-free and inviting on the outside. Avoid a dark, forbidding atmosphere by clearing away dead trees and hanging branches; replacing rusty iron gates with a white fence, and getting rid of unwanted residents like stray cats and spiders. On the inside, think warm, bright, and clutter-free. Doing away with darkness and gloom that could promote the idea of spirits may require removing outdated, musty furniture, antique rugs, old pictures of ancestors, and any other items that contribute to an “eerie atmosphere” so that you can alleviate any pre-conceived notions in potential buyers.

If you simply cannot dispel persistent beliefs about the “dark side” of your Chester County PA real estate, you may have to resort to bringing in a Ghostbuster.  David Frankin Farkas, owner of HouseHealing.com, makes a full-time living ridding properties of specters and/or negative energy.  Click here to find groups who will investigate paranormal

And finally, pricing your Chester County PA real estate to sell is another strategy you must consider.  By lowering your price 20-25%, you may make your property more attractive to potential buyers, especially investors.