Real Estate Information Archive

Most people, when told that both good and bad news awaits them, will opt to hear the bad tidings first.  Although they dread receiving unpleasant news, their hope is that the ensuing good news will erase, or at least soften, what they heard earlier.  In the assumption that owners of Chester County PA real estate share this approach, the FHA has recently announced bad news/good news regarding their mortgage interest premiums (MIP) and fees.

The Bad News:  As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, a new premium structure for FHA-insured single family mortgage loans on Chester County PA real estate was announced. 

• FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. 
• Upfront premiums (UFMIP) will also increase by 0.75 percent. This change is effective for case numbers assigned on or after April 1, 2012.  
• FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500.  This change is effective for case numbers assigned on or after June 1, 2012.

FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month.  These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan.  Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the new pricing changes.

So, if you are FHA qualified and have been sitting on the fence, NOW is the time to become a Chester County PA real estate owner while you can save money!

The Good News:  In a bid to make its Streamline Refinance Program more affordable to U.S. homeowners the FHA has introduced a new concept in mortgage insurance premiums. Going forward, the amounts the owner of Chester County PA real estate will pay for FHA mortgage insurance will depend on the age of existing FHA mortgage.  The longer you've had your mortgage, the less you're going to pay for MIP.  Certainly a reason to smile for many people!

In December of 2007, Congress signed into law the Mortgage Debt Relief Act to aid distressed homeowners.  Under regular circumstances, when a lender chooses to forgive all or part of a borrower’s debt, that amount is considered income and the borrower is liable to be taxed on it.  However, this law offers relief to the owner of Chester County PA real estate in that debts discharged through calendar year 2012 are not taxable.  Limited to primary residences only, the amount of forgiven mortgage debt allowed to be excluded from income tax is $2 million per year.  Debts reduced through mortgage restructuring as well as mortgage debts forgiven in connection with foreclosure qualify for this relief.

On the fence about selling your underwater Chester County PA real estate as a short sale?  Consider this: if your home isn’t sold before January 1, 2013, and you owe $50,000 more than its market value, you could realistically end up paying more than $12,000 in taxes in 2013 if you’re in the 25% tax bracket! Once you decide on going the short sale or foreclosure route—and remember, short sales often take a long time to sell--the first thing you need to do is to request that your lender officially and in writing  waive any deficiency connected with your Chester County PA real estate.  If this waiver is not granted, the lender has 20 years to obtain repayment from you via collection agencies, garnishments, and/or liens.

Because of the impending deadline and the length of time required for short sales and foreclosures, many real estate and financial gurus stress the importance of acting now to set wheels in motions.  They urge distressed owners of Chester County PA real estate to realize that there is no tax exclusion allowed on pending closings/foreclosures.  Only transactions completed by December 31, 2012, are eligible for income tax relief—and there are no indications that the current deadline will be extended!

If you are one of the millions of Americans whose home has lost value in recent years, despair not.  Whether you’re trying to spiff up your Chester County PA real estate for resale, to raise its appraisal, or just to keep current with updating and maintaining what you currently have, there are many relatively easy and budget-worthy steps you can take.   Some of these minor projects designed to increase value are quick fixes while others may require a weekend’s worth of work, but all will certainly revive the look of your property.

Exterior improvements:

• Keep shrubs and trees neatly pruned.  Plant new trees for energy savings and aesthetic value.
• Add low-voltage lighting for pathways
• Pay attention to the front door of your Chester County PA real estate.  Does it need new weather stripping?  A fresh coat of paint? Updated (or at least polished) hardware—knockers, knobs, hinges, and light fixtures?
• Spend $10 to test your lawn for needed nutrients.
• Attend to the garage door.  Use a mixture of one part bleach to three parts water and a soft-bristled brush to give it a thorough cleaning.  Still dirty or stained?  Rent a power washer for about $60.
• Check for faded or peeling paint.  Sand and apply a fresh coat.

Interior improvements:

• If you can’t replace the water heater in your Chester County PA real estate with a tankless model, wrap the one you have in fireproof insulation.
• Install modern light switches and outlets throughout your home.  Add dimmer switches.
• Insulate windows.  (Easy-to-follow instructions.)
• In bathrooms replace dated towel racks, light fixtures, sinks, toilet seats, and hardware.  Purchase a low flow toilet.  Re-grout where needed.  Display matching towels.  If the floor is in poor shape, consider putting easy-to-install vinyl tiles right over the old one.
• Add crown moldings, wood trim, and/or cornices to give room a look of quality.
• Update your kitchen inexpensively by replacing fixtures, faucets, and hardware.  Consider pendant lighting.  Refinish cabinets rather than replacing them.
• Clean and organize all closets. 

The end of summer brings an opportunity for a new home maintenance to-do list. Of particular importance at this time is the checking of the exterior of your Chester County PA real estate while good weather permits close inspection.

One practical suggestion from All Surface Clean Company is that it is wise to begin your inspection from the top of your piece of your house and work your way down to ground level, gravity being what it is. Thus, to avoid the need for re-cleaning, remember to start at the roof and gutters, proceed to windows, siding, decks, and fences; then go on to the pavement/driveway of your Chester County PA real estate.

1. ROOFS AND GUTTERS:

Strong winter winds may well have loosened a shingle or two on your roof, and they certainly have deposited unwanted leaves, twigs, etc., in the gutters. Here is expert advice on how to properly clean out that residue and inspect your roof like a professional.

2. EXTERIOR MATERIALS:

No matter the type of material used on the outside of your Chester County PA real estate, you want to check it carefully to preserve the integrity of the house.

• Vinyl siding: Look for loose or missing siding, cracks, or breakage; deterioration or fading; mold/mildew; and punctures. It is generally best to replace any damaged piece.
• Brick: Cracked mortar and/or crumbling or cracked bricks are what you’re looking for.
• Stucco: Cracks, crumbling, and water damage are three problems for which you’ll want to check.
• Wood: Be on the lookout for signs of rot, peeling/blistering paint, mold, and termite damage.  While some of these conditions may be minor and can be fixed by you, other more serious problems may require the assistance of a professional

*Note: If you are considering power washing the exterior of your Chester County PA real estate, consult the above-mentioned website for tips on doing that job.

3. WINDOWS:

Make sure your windows (and doors) are tightly sealed to prevent air leakage. Also repair/replace caulk and weather stripping and repaint trim as needed.

4. DECKS:

Secure loose nails/fasteners. If replacing them, use galvanized or stainless steel deck screws. Reinforce loose stairs and railings and check to make certain that the deck has not pulled away from your house. Clean the deck with a biodegradable detergent and a brush to remove debris and stains and apply a preservative if needed.

5. FENCES:

Ascertain that posts are firmly implanted and that no wood is showing signs of rot or termites. Think about treating fence wood with a fresh coat of preservative.

6. DRIVEWAYS AND PAVEMENT:

Check for cracks, crumbling, and erosion and remove moss and debris. Here are excellent tips for cleaning the driveway of your Chester County PA real estate, be it concrete, asphalt, brick, or pavers.

For years the idea of a starter home has usually meant a property that may need some work, but a recent survey by Caldwell Banker discovered  that most first-time buyers aren’t in the market for those kinds of houses. According to the poll, 87 percent of recent first-time buyers said that finding a move-in ready home was important to them. These buyers, who accounted for 33 percent of existing home sales in December, stated that the condition and quality of the Chester County PA real estate they purchased mattered a great deal. One Realtor has referred to these folks as “HGTV buyers.’

Nearly all Realtors will tell you that a house which has been well maintained and needs few, if any, repairs, even cosmetic ones, will sell faster than others. While some renovations/repairs may be relatively expensive, such as installing a new roof, repaving the driveway, or upgrading appliances, most agents advise a seller not to undertake major renovations, especially in the kitchen or bathrooms. They advise not spending more than you’ll recoup in the sales price and understanding that major renovations are generally a matter of personal taste..

Remodeling is for buyers, not sellers. Major renovations usually don’t pay for themselves, let alone add enough value for you to make a profit. So why would you want to go through the hassle and the expense right before you move? Concentrate instead on smaller fixes with bigger impact and let your buyers remodel to suit themselves. In addition to removing all clutter from your Chester County PA real estate, thoroughly cleaning the whole house, and downsizing in regards to furniture and personal items, you should also seriously consider:

• Adding a fresh coat of paint (in a neutral shade) where needed
• Presenting a well-tended yard
• Fixing dripping faucets and checking all caulking

If you are prepared to invest some money to improve your home’s presentation, start with the most cost-effective projects and remember to keep a journal of jobs and receipts. Home improvement costs are often deductible (when costs are incurred 90 days before the sale and paid within 30 days after the sale). While lawn-mowing and  weekly cleaning bills do not qualify according to IRS regulations, new paint, a new water heater, or new gutters usually do apply. Some hints:

• Replace broken gutters and shutters.
• New paint indoors or out is usually approved by the IRS for deduction if completed and paid for near the time of sale.
• New floor coverings (in neutral shades) on kitchen and bathroom floors may be another affordable investment which can speed a sale by appealing to buyers’ desire for a property that is ‘ready to move in,’ particularly if the current style of colors are dated.
• Repair broken woodwork, loose planks, and creaky stairs. No buyer wants a home that needs structural repairs.
• Hardwood floors are a plus. If you have hardwood floors, consider removing anything covering, them up, especially if the carpet is worn. Refinish the wood if necessary.

So if you want a quick sale and hope for top dollar, take steps in advance of listing to convince potential buyers that your home is move-in ready and definitely one worthy of an “HGTV” buyer!

For years the idea of a starter home has usually meant a property that may need some work, but a recent survey by Caldwell Banker discovered  that most first-time buyers aren’t in the market for those kinds of houses. According to the poll, 87 percent of recent first-time buyers said that finding a move-in ready home was important to them. These buyers, who accounted for 33 percent of existing home sales in December, stated that the condition and quality of the Chester County PA real estate they purchased mattered a great deal. One Realtor has referred to these folks as “HGTV buyers.’

“This is absolutely the story of the market, “ says real estate agent Beth Freed. “It seems buyers will pay a premium , engage in a bidding war, and even overpay just to avoid buying a ‘project’ house.” So what does this mean for you as a seller of Chester County PA real estate? Nearly all Realtors will tell you that a house which has been well maintained and needs few, if any, repairs, even cosmetic ones, will sell faster than others. While some renovations/repairs may be relatively expensive, such as installing a new roof, repaving the driveway, or upgrading appliances, most agents advise a seller not to undertake major renovations, especially in the kitchen or bathrooms. They advise not spending more than you’ll recoup in the sales price and understanding that major renovations are generally a matter of personal taste..

Remodeling is for buyers, not sellers. Major renovations usually don’t pay for themselves, let alone add enough value for you to make a profit. So why would you want to go through the hassle and the expense right before you move? Concentrate instead on smaller fixes with bigger impact and let your buyers remodel to suit themselves. In addition to removing all clutter from your Chester County PA real estate, , thoroughly cleaning the whole house, and downsizing in regards to furniture and personal items, you should also seriously consider:

• Adding a fresh coat of paint (in a neutral shade) where needed
• Presenting a well-tended yard
• Fixing dripping faucets and checking all caulking

If you are prepared to invest some money to improve your home’s presentation, start with the most cost-effective projects and remember to keep a journal of jobs and receipts. Home improvement costs are often deductible (when costs are incurred 90 days before the sale and paid within 30 days after the sale). While lawn-mowing and weekly cleaning bills do not qualify according to IRS regulations, new paint, a new water heater, or new gutters usually do apply. Some hints:

• Replace broken gutters and shutters.
• New paint indoors or out is usually approved by the IRS for deduction if completed and paid for near the time of sale.
• New floor coverings (in neutral shades) on kitchen and bathroom floors may be another affordable investment which can speed a sale by appealing to buyers’ desire for a property that is ‘ready to move in,’ particularly if the current style of colors are dated.
• Repair broken woodwork, loose planks, and creaky stairs. No buyer wants a home that needs structural repairs.

Hardwood floors are a plus. If you have hardwood floors, consider removing anything covering, them up, especially if the carpet is worn. Refinish the wood if necessary.

So if you want a quick sale and hope for top dollar, take steps in advance of listing to convince potential buyers that your home is move-in ready and definitely one worthy of an “HGTV” buyer!

Want New Windows and Doors For Your Chester County PA Real Estate?

In addition to chasing away the winter blues, spring also brings with it exciting times for gardeners who anticipate floral beauty and healthy plants for the grounds of their Chester County PA real estate. To fulfill your gardening hopes, however, you need to prioritize your time in order to tend to all the tasks necessary for blooms and blossoms.

• Prune

For early blooming shrubs such as forsythia and viburnum, prune them as soon as blooms have passed. Early spring is also an ideal time to prune your roses.

• Deadhead

Remove spent flowers from bulbs, but leave the rest of the plant as is for the time being.

• Weed

Pull weeds from your beds and borders before they have a chance to take hold and spread.

• Compost

Tend to your compost if it has been neglected over the winter. If you do not have a compost bin, spring is a great time to start one.

• Prepare tools

Spring is a good time to prepare your tools for the oncoming gardening season and to make any necessary repairs or new purchases. You will be happy you have done so when summer sets in.

• Plant

Spring is a great time to add new plants to your garden. Be sure, however, that all threat of frost has past. Plant such things as trees, shrubs, hardy annuals, and summer blooming bulbs.

• Fertilize & Mulch

Fertilize and mulch beds and borders. Spring is also a good time to fertilize fruit trees. If you applied heavy winter mulch for protection from the cold, you will need to clear it away.

• Stake

Stake plants that may be prone to wind damage during the unpredictable spring weather.

One type of gardening which appeals to many environmentalists is organic gardening, the incorporation of the entire landscape design and environment to improve the soil and maximize plant production without using synthetic materials.

Another gardening philosophy which is gaining in popularity is “no till” planting. Proponents of this system insist that not tilling the soil of your Chester County PA real estate improves the quality of the dirt by not disturbing it and thus not bringing buried weeds, bacteria, and carbon to the surface. Layers of mulch and other organic materials not only “feed” the soil, but also control weed growth.

Whatever method you select, may your gardening days be happy and your blooms rewarding!