Thinking About Co-Ownership With A Friend? February 22, 2012
Posted by chipplumley in Moving.add a comment
Friends often share holidays, vacation together and are there for all the important moments in life. So, why not buy a home together?
An increasing number of consumers are considering joint ownership. Such a transaction makes sense, as it can help those who may not have been able to afford a home on their own, it gives each owner a real estate investment, and it can even strengthen the friendship.
But the opposite could happen as well. Friends can feud over the most trivial of things, placing the long-term housing investment at risk.
Here are some tips for surviving co-ownership with a friend.
1. Be sure before agreeing to this life-altering decision that all parties are willing to disclose their financial information, agree upon the type of home and location they are after, and are truly comfortable with living with one another.
2. Consult with an attorney: A contract between the parties is vital, as is listing each person’s name on the deed and the mortgage papers. The percentage of ownership must be clearly stated in the contract, including details of each person’s share of the down payment and the way in which mortgage payments will be divided. This sets the stage for deciding each one’s share upon sale.
3. Get pre-approved for a mortgage: Mortgage companies aren’t always thrilled with lending to two unmarried or unrelated people. Odds are those buying a home will need to jointly qualify as co-borrowers on a single mortgage in order to purchase a property held in tenancy in common or joint tenancy.
4. Understand each other’s wants and needs: House options, mortgage rates and contract terms will be contingent on each individual’s credit history, financial health and both short-term and long-term obligations, so it is smart to discuss all of this ahead of time. During the house-hunting stage, the friends may have different ideas on what they are looking for. It’s always a smart idea to sit down and list the most important features to each and figure out what each is willing to give up.
5. Have an exit strategy: Jobs change or a surprising romance could evolve where marriage will soon be in the picture. What happens to the house then? This is something that should be agreed upon before the house is bought.
Once everything is agreed to and a mortgage commitment is in hand, things still aren’t easy. It’s hard enough finding the perfect home, but to have to find the perfect home for two is even tougher.
Friendships can stand the test of housing issues, so don’t be scared off; just make sure that when buying any real estate with friends that you don’t let the friendship cloud your judgment.
Prudential Fox & Roach is an independently owned and operated member of
BRER Affiliates Inc. Used under license with no other affiliation with Prudential.
Equal Housing Opportunity.
January 2012 Local Real Estate Market Report. February 14, 2012
Posted by chipplumley in Market Statistics.add a comment
ALL REAL ESTATE MARKETS ARE LOCALIZED!
Chester County
- 367 homes went under contract in January which is up 26.1% over last year.
- 274 homes actually went through with settlement. An increase of 13.2% over January 2011.
- Those 274 homes that sold totaled $88,000,000 is sales! Unfortunately that’s about a 2.7% decrease over last year.
- Only 3,124 homes are currently for sale which is about a 9.1 month’s supply of inventory.
- The Average Settled Price to Original Listing Price was about 90.7%. So if you listed your home for $100,000, this says you may sell it for around $90,700. All-in-all, it was a good way to start off 2012! The winter didn’t slow us down as everyone usually predicts. A buyer’s market generally has a 6-12 month supply of homes, so we are still within that range. However, homeowners are selling there homes! Don’t believe the media when they tell you things are getting worse.
New Castle County
- 426 homes went under contract in January which is up 71.8% over last year.
- 296 homes actually went through with settlement. An increase of 28.7% over January 2011.
- Total volume of those homes that sold totaled $56,000,000 is sales! That’s an increase of 1.1%!
- Only 2,755 homes are currently for sale which is about a 7.6 month’s supply of inventory.
- The Average Settled Price to Original Listing Price was about 88.6%. So if you listed your home for $100,000, this says you may sell it for around $88,600.
WOW NEW CASTLE COUNTY! Old Man Winter didn’t slow us down at all! Remember, a buyer’s market generally has a 6-12 month supply of homes, but a balanced market generally has 4-5 month’s worth of inventory. Homeowners are selling there homes! Are we possibly heading for a balanced market once again?
I strongly urge you to take a look at the reports straight from TrendMLS (the area’s Multiple Listing Service) and determine your own opinion of what the market is truly like. The numbers speak for themselves!
Please click on your County below for the detailed PDF of your market area.
Interest rates are starting to climb a little. A 30 year fixed rate is about 3.875% and a 15 year fixed rate is around 3.5%. There is a possibility of getting a lower rate with points too. Great time to buy and sell!
Tri-State Area Year-To-Date Market Snapshot
Marketwatch Report – 2011:Q4 Report
Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635.
Prudential Fox & Roach is an independently owned and operated member of
Prudential Real Estate Affiliates, Inc., a Prudential Financial company.
Equal Housing Opportunity.
The Trouble With Vacant Homes February 8, 2012
Posted by chipplumley in Successful Homeselling.add a comment
Today’s housing market makes it tougher to get the price for a home and, often, sellers can’t wait around while their homes are on the market. They may have a new job in a different location, may have already bought their next house or need to move to their new location so the kids can start at their new schools.
If sellers already have a new home, it’s likely that they’ll take all their furniture and leave the property empty during selling process. The U.S. Census Bureau’s most current data shows that more than 2.2 million for-sale houses in the U.S. were vacant in 2008, and that number has risen over the last few years as more homes fell into foreclosure or short-sale status.
Yet it all comes down to perception for buyers, who understand that vacant homes can suffer from a wide variety of ills due to neglect and deferred maintenance. Moreover, vacant houses pose unique challenges for showcasing and selling because many buyers cannot see beyond an empty home. They’re looking to buy a “home,” as opposed to a “house,” and without furniture, wall art, rugs, lighting and décor, there are few emotional connections.
Plus, with no furnishing to focus on, a potential buyer will be on the lookout for imperfections, such as floor scratches, nail pops, chipped grout and other imperfections.
The easiest fix for a vacant home is to bring in a home stager, who can give the property a comfortable, lived-in look, enabling potential buyers to better visualize how they would use the home.
When a home buyer perceives flaws and can’t see a home’s potential, there will be fewer offers, greater price reductions, more days on the market, higher carrying costs and less profit.
A vacant home can also hurt your negotiating power. If buyers know that you are already out and most likely paying another mortgage, they will figure you are more motivated to sell and will likely present a low-ball offer.
By staging a vacant home, you will create a proper vision for the property and achieve a quicker and hopefully more profitable outcome.
Prudential Fox & Roach is an independently owned and operated member of
BRER Affiliates Inc. Used under license with no other affiliation with Prudential.
Equal Housing Opportunity.
Home Theaters: Great for the Family, Desired by Home Shoppers February 1, 2012
Posted by chipplumley in Real Estate.add a comment
One of the most in-demand requests that real estate agents are getting from those looking for new homes concerns home theaters, or at least the space to add such a multi-media room.
With home-theater technology evolving and prices lowering over the last decade, the concept has evolved from luxury to near necessity for many households. It’s the place where the family comes together to be entertained, and is the most occupied room in the house after the kitchen and family room. It’s become the focal point for entertaining and showcasing expansive, crystal clear flatscreens and impressive components. It’s why many homebuyers are looking for houses with home-theater spaces or extra rooms to create one.
Real estate experts agree that home theatres add value to a home. According to the Home Builders Association, most new homes with a $250,000-plus price come with a home theater or media room.
“Home theater is a way for the homeowner to bring all these cool new pieces of technology together and fit them seamlessly into their lifestyle,” said David Start, vice president of Sacramento, Calif.-based theater-furniture manufacturer California House. “You have Apple, Netflix and now Amazon—all these big tech companies with really fantastic products. Home theater allows you to integrate these products into the way you live.”
There are several ways one can make the home theatre room more appealing prior to showing a home.
Start by cleaning all surfaces, keeping wiring as discrete as possible and storing electronics that may look sloppy due to wires or size. Also, although having lots of seating space is practical in a media room, it may be a good thing to reduce the number of sofas to give a spacious look to the room.
“I think a media room does add value, however, it is truly a personal preference based upon what the buyer wants and/or is looking for in a home,” said Teresa Cwik of Showcase Staging Houston, Houston, Texas. “I have seen a lot of these rooms staged and in my professional opinion I believe the room should be staged with appropriate media room furniture, such as theater seating.”
There are a number of smart furniture choices to make the room look better and create the movie environment that so many desire.
“Customers are looking for furniture that will present their TV in style while concealing many of the other components—DVDs, gaming consoles, speakers—neatly out of sight,” explained David Adams, marketing director for home-theater furniture manufacturer BDI of Chantilly, Va. “Unique features that are integrated into better home theater furniture include hidden wheels, flow-through ventilation, adjustable shelves, built-in media or speaker storage, and integrated cable management systems.”
Indeed, we’re in the golden age of gadgets and components. Rooms focused on technology can be just as appealing to today’s home buyer as a large bathroom or walk-in closet.
Prudential Fox & Roach is an independently owned and operated member of
BRER Affiliates Inc. Used under license with no other affiliation with Prudential.
Equal Housing Opportunity.
VA Loans Are Opening Homeownership Doors for More Veterans January 25, 2012
Posted by chipplumley in Mortgage & Financing, Mortgages and Financing.add a comment
Past and current military personnel looking for financing in today’s more stringent mortgage environment can take advantage of the VA loan program, which has been available for more than six decades to help members of the military own their own homes.
The program, established in 1944 as part of the Servicemen’s Readjustment Act, is available for any individual who has served in active duty in any branch of the U.S. military for a minimum of 90 days.
“The beauty of this loan is that it allows financing without requiring a down payment,” said Eric Kandell, founder of lowvarates.com. “It also doesn’t allow the mortgage lender to charge the veteran private mortgage insurance.”
A VA loan does require the borrower to pay a one-time funding fee on their purchase, which can be paid up front or financed into the total cost of the loan. The funding fee for regular military members is 2.15% of the loan. Reservists pay a fee of 2.40%.
Non-active duty personnel, such as individuals in the Army Reserves or National Guard, may apply for a VA-backed mortgage provided they have completed six years of service. Spouses of deceased or missing military members are also eligible if they have not remarried. Those who were dishonorably discharged from any military branch are not eligible.
“I’ve closed more VA loans in the past two years than in the past decade,” said Steve Thorne, area manager for First Financial Services, Inc. in Raleigh, N.C. “It really is a great benefit to the veteran in the ‘New Mortgage World.’ The key to getting more veterans to take advantage of this benefit is simply an awareness of the benefit.”
Statistics provided by the Department of Veteran’s Affairs show that roughly 25 million people are eligible for a VA loan yet only 10-15 percent of those have taken advantage of it when buying or refinancing.
One reason is that for many years leading up to the mortgage crisis, there were many conventional mortgage products that were easier or more economical to the veteran than the VA loan.
“In the wild, wild west of mortgage lending from the early 2000s to 2008, 100% financing was common,” Thorne said. “So why pay the VA funding fee just to have 100 percent financing? Not to mention the VA control of the appraisal process, understanding residual income and all the additional disclosures. It was just a more cumbersome process then the ‘come on down, everybody gets a loan’ of the conventional arena.”
Many veterans, especially those not so recently discharged, aren’t sure of VA loan benefits or that the program even exists. With the VA loan the veteran can buy a home with little to no money out of pocket.
“In the past, veterans were told about other financing on the market and people were more inclined out of ignorance to use non-VA loan financing,” Kandell said. “[The VA loan] is a great loan and you are going to see a massive shift in numbers going forward.”
Prudential Fox & Roach is an independently owned and operated member of
BRER Affiliates Inc. Used under license with no other affiliation with Prudential.
Equal Housing Opportunity.
A Glance at Green Benefits January 18, 2012
Posted by chipplumley in Real Estate.add a comment
The U.S. Green Business Council recently reported that single-family homes are responsible for a little over 20% of the country’s greenhouse gas emissions. By living in a green home, people can help reduce the causes of climate change and studies show that more homebuyers are looking to purchase homes that have eco-friendly features.
“We put out a homebuyer and seller survey annually and studies show people are more interested in buying green improved homes,” said Michelle Wardlaw, Public Affairs Associate for the National Association of Realtors. “NAR research has consistently shown that there is a considerable growing market for green homes. Many of the consumers today, we find, want homes that are sensitive to the environment.”
Many who think about going green in a home envision solar panels, but those aren’t the best investment for everyone. With solar panels, a home must be in an area with sufficient sunshine and it must be in a location that is eco-friendly minded.
“Solar Panels require an up-front investment but because they are clearly visible from the street they are likely to command a price premium,” said Matthew E. Kahn, Professor at UCLA Institute of the Environment in the Department of Economics. “In preliminary work using data on home sales in Sacramento County [California] I have found that with all else being equal, that homes with solar panels sell for a 6% higher price.”
If you were selling a home in the Midwest, that probably wouldn’t be the case.
While solar panels are clearly seen by a potential homebuyer, this can be the tip of the iceberg in determining whether a home can offer energy efficient savings.
“While a potential buyer will notice whether the home has a swimming pool or a great kitchen, the home’s energy efficiency and ‘greenness’ is harder to see,” said Kahn. “The seller who owns such a home should recognize this point and make his home’s green features well known.”
There are more inexpensive things a seller can do to make their home green prior to putting a house on the market.
Justin Barnes, a policy analyst for the Database of State Incentives for Renewables & Efficiency, funded by the U.S. Department of Energy, said the easiest green fixes deal with appliance replacements.
“There are all kinds of incentives for these and that makes a home attractive,” he said. “Other measures are cost effective and advisable as well, such as replacing windows and doors and finding ways to insulate the home more effectively.”
Some upgrades have more appeal and return on investment than others. Energy-efficient appliances can reduce monthly utility bills, tankless water heaters mean less time and water wasted waiting for water to warm up, and replacing old furnaces can lower a heating bill.
These eco-friendly upgrades may not be a top priority for most buyers, but when pointing it out, you can pique their interest.
“In terms of resale price maximization, the best green initiatives to help sell hinges on whether potential buyers value energy efficiency and are aware of the home’s energy efficiency,” Kahn said. “If the seller believes that his home is highly energy efficient due to his past investments and the architecture of the home, then the seller should produce 12 months of past electricity bills to signal to potential buyers that the home has this added bonus.”
Remember, anytime you need to replace something in your home, it’s an opportunity to make an eco-friendly choice, which can help in the resale value later on.
Prudential Fox & Roach is an independently owned and operated member of
BRER Affiliates Inc. Used under license with no other affiliation with Prudential.
Equal Housing Opportunity.
2011 Real Estate Market Year In Review January 16, 2012
Posted by chipplumley in Market Statistics, Real Estate.add a comment
ALL REAL ESTATE MARKETS ARE LOCALIZED!
- Chester County
Settled UnitsYear over Year was down 3.5%, a difference of 12 homes, but only down 1.9% for the entire year!
That’s only 79 less homes sold the entire year and remember the tax credit boosted sales in the beginning of 2010. So being down only 1.9% is actually not bad at all!
Total Settled Volume
Year over Year is down 10%, a difference of $12M, and only down 4.55% in 2011. $1,457,716,000 in total sales for 2011, which is down $69,418,000.
7 months showed an increase in prices but because of that tax credit, April, May and June hurt the overall yearly amounts. September and December were the only other 2 months that had declines which has been the case since 2006.
- New Castle CountySettled Units
Year over Year is up 19.8%, an increase of 67 more homes, and up 4.25% for the entire year. 174 more homes sold in 2011 than 2010.
Total Settled Volume
Year over Year is up 8.7% but down 6.84% over 2010. $928,952,000 worth of homes sold in 2010 compared to $997,137,000 in 2010. $681,850,000 difference over 2010 but the 2010 tax credit had a lot to do with the decrease in sales volume. There was a decrease in sales volume for the first 6 months of the year and again April, May and June were the biggest sales dollar losers. Just the opposite of 2010 where the last 6 months of the years were all down.
I strongly urge you to take a look at the reports straight from TrendMLS (the area’s Multiple Listing Service) and determine your own opinion of what the market is truly like. The numbers speak for themselves!
Please click on your County below for the detailed PDF of your market area. REMEMBER that some of the numbers before June are skewed because of the Federal Tax Credit offered in the first 6 months of 2010.
Interest rates are starting to climb a little. A 30 year fixed rate is about 3.875% and a 15 year fixed rate is around 3.375%. There is a possibility of getting a lower rate with points too. Great time to buy and sell!
Tri-State Area Year-To-Date Market Snapshot
Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635.
Prudential Fox & Roach is an independently owned and operated member of
Prudential Real Estate Affiliates, Inc., a Prudential Financial company.
Equal Housing Opportunity.
Technology and Home Sales January 11, 2012
Posted by chipplumley in Successful Homeselling.add a comment
Today’s home buyers are often thinking about a home’s technology advantages as much as they are its floorplan, square footage and location.
A recent survey by the Consumer Electronics Association of real estate agents showed that home-theater systems, home security systems, home automation management systems and energy management systems are selling faster than they ever have.
“There is a strong relationship between home technologies and the real estate market,” said CEA’s Rhonda Daniel in a recent press release. “While the market needs to recover before home technologies play a more important role in home sales, the industry can help prepare real estate agents to be comfortable in discussing these types of systems with their clients.”
According to the survey, the number of real estate agents who have been involved in buying, selling or showing a plugged-in home equipped with technology has risen greatly during the last two years. Those showing established systems such as monitored security were calculated at 93%; home theater or home theater-wired systems were 89%; home automation and management systems were 54%; and energy-management systems were 51%.
The survey also shows that 68% of REALTORS® believe home technologies will play a more important role in the success of home sales within five years. “Manufacturers and electronic systems contractors should be laying the ground work now to take advantage of the eventual upswing in the real estate market,” Daniel said. “Educating rREALTORS® on the benefits, value and functionalities of installed technologies now will demonstrate that the CE industry can be a trusted partner to equip them with knowledge.”
Nearly two-thirds of real estate agents surveyed offered that their clients are excited to see technologies in homes. That means current homeowners looking to sell should consider upgrading their home with some sort of home technology system.
“The ideal goal for the consumer electronics industry is to have knowledgeable real estate agents who are excited and open to promoting technology as a selling feature of homes,” Daniel said.
A less expensive way to appeal to technology enthusiasts is to simply make sure there are enough outlets, cable lines and phone jacks at the ready so that someone coming with their own equipment will have an easy time installing them. A home with only one outlet in the family room or media room and no place for a fiberoptic line to be added can be a turnoff.
Thinking of the future may help you sell your home faster in the present.
Prudential Fox & Roach is an independently owned and operated member of
BRER Affiliates Inc. Used under license with no other affiliation with Prudential.
Equal Housing Opportunity.
Fireplaces Provide a Warm Glow to a Home on the Market January 4, 2012
Posted by chipplumley in Successful Homeselling.add a comment
With winter weather gripping most of the country the fireplace takes on greater importance in the sale of a home.
The National Association of REALTORS® recently conducted a survey that found nearly two-thirds of homebuyers had a fireplace on their wish list. The fireplace has become a coveted amenity and homes boasting this feature see its benefits during resale.
“The fireplace is a focal point when people come to see your home,” said Hillary Staats, an interior designer for Sanctuary on Church in Vienna, Va.
That’s why it’s important to make sure that the look of your fireplace has been updated and is working properly. An older looking fireplace that seems an eye-sore can be easily updated.
“There is a lot you can do to enhance the fireplace before a sale. A lot of times, if it has older brick, I will re-stone a fireplace. Other times it could be as simple as changing mantels, adding a fancier screen or placing a beautiful piece of art above it.”
Transformation materials that are inexpensive and easy to work with are tile, manufactured stone, granite, marble and wood. Sometimes even painting over old, ugly brick will make a huge improvement.
“A masonry fireplace can really set a home apart from the rest and significantly improve resale value,” said Larry Kett, owner of Kett’s Hearth and Home in Grand Rapids, Mich. “Adding a mantel also helps. An engaging fireplace and mantel can provide grandeur for an otherwise ho-hum room.”
Keeping the mantel clean and uncluttered is also a must. “You want the fireplace to look inviting but not cluttered, so keep the mantel clear of all photos and knickknacks,” Staats said. “It’s fine to decorate with accessories, but they shouldn’t distract from the fireplace itself.”
If you want to add a fireplace to improve your home’s resale value, consider an electric fireplace as it’s often the least expensive option and reasonably easy to install.
Gas fireplaces are more common today and easy to use, plus they can be installed just about anywhere. There is no need for a chimney, wood or even matches with this type of fireplace and there is no mess to clean up either. Ceramic log kits are efficient and look like the real deal, without ashes to clean up.
Finally, regardless of the season, a fireplace should be kept clean and in working order. “You want your buyer to go home feeling really great about that room and knowing they can move in and sit in front of that wonderful fireplace and hearth,” Staats said. “There are few things as warm and inviting as a burning fire on a wintry day.”
Prudential Fox & Roach is an independently owned and operated member of
BRER Affiliates Inc. Used under license with no other affiliation with Prudential.
Equal Housing Opportunity.
The Pros and Cons of Home Selling During the Holidays December 28, 2011
Posted by chipplumley in Real Estate.add a comment
One of the great debates in real estate concerns the prospect of keeping a house on the market during the holiday season. Some argue that the time between Thanksgiving and New Year’s Eve is busy enough without the worry of buying a home, while proponents like the prospects since those shopping are generally more serious about buying.
A downside for the seller is that the hectic time of year makes it harder to get your home ready at the drop of a hat if a call comes in. People are busy making food, wrapping presents and preparing for a house-full of guests.
However, your house will also be decorated with beautiful lights and decorations and will create a festive elegance to a home that will attract buyers.
Some agents believe that keeping your house on the market will have you appealing to a much smaller inventory of buyers who have very specific needs that your home might not match. Others counter that less inventory over the holidays means less competition and since more people have vacations this time of year, they actually have more time to search for their ideal home.
The holidays can provide a breather for homes that have been on the market awhile, as some use the time to remove property from the market in favor of a fresh start in January. However, you risk losing the buyer who may have been looking in December to capture tax benefits that many consider with their need to buy a home.
What’s the best solution? Of course it’s up to individual homeowners and their respective circumstances. Prospective sellers should discuss their holiday prospects in detail with their Prudential Real Estate agent. Working together, they can make holiday wishes come true.
Prudential Fox & Roach is an independently owned and operated member of
BRER Affiliates Inc. Used under license with no other affiliation with Prudential.
Equal Housing Opportunity.
