Real Estate Information

In recent years of ever-increasing fees by service repair companies and continued belt-tightening by home buyers, the provision of home warranty protection plans by sellers has become a rather common--and even expected--incentive. The knowledge that they won’t be hit by unexpected repair bills in the first year after purchasing their Chester County PA home is reassuring to buyers, especially first-timers who have no experience in home maintenance.

A home warranty plan is essentially a service contract that covers a major housing system, for example, plumbing or electrical wiring -- for a set period of time from the date a house is sold. The warranty guarantees repairs to the covered system and is renewable.

How Much Does a Home Warranty Cost?

They are fairly inexpensive, typically ranging from $250 to $400, depending on coverage. Home warranty companies sometimes run special sales and either discount policy prices or offer additional coverage for the same price. The policies are prepaid for a year in advance, at which time they expire or can be renewed.

How Do They Work?

Although specific plans provide for specific types of coverage, most operate the same way.

• If a home system or appliance breaks or stops working, the home owner calls the home warranty company.
• The home warranty company calls a provider with which it has a business arrangement.
• The specific provider calls the home owner to make an appointment.
• The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.
• The home owner pays a small trade service fee (less than $100).　

Types of Coverage

Because all plans differ, you will want to ask specifically what is covered. Ask your real estate agent to recommend a proven plan and inquire if upgrades are available for your Chester County PA home. Pay close attention to whether the home warranty company will pay for repairs to make certain types of systems or appliances compliant with new regulations and be aware that they won’t pay for pre-existing conditions. Usually covered are heating and cooling systems, water heaters, appliances, electrical systems, inside plumbing stoppages, ductwork, ceiling fans, and garbage disposals.

Advantages Of Offering a Warranty Plan

Home warranty companies profess that in addition to providing buyer peace of mind, the protection plan you provide for your Chester County PA home prevents many post-sale disputes, speeds up the sale, and helps to bring in a higher price. They also suggest that you take out such a policy during the listing period to provide peace of mind to you, the seller, too!

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!

Although the housing market has been unpredictable in recent months, the existence of a seller’s market and the availability of low interest rates are providing incentives for potential buyers. Obtaining a mortgage, especially one which is attractive to you, is not as easy as it was a few years ago. As a result of the extreme increase in the number of foreclosures, banks have raised their lending standards for all borrowers, and there is little reason to believe that these stringent requirements will lessen anytime soon. This tight credit situation affects would-be buyers of Chester County real estate in numerous ways, among them down payments, credit scores, documentation, debt-to-income ratio, and appraisals.

        1. Down payments: Requirements will be higher. Generally speaking, to get the best interest rate you need to put down at least 20% of the purchase price of the Chester County real estate. FHA loans are available for a down payment of only 3% to 5% but these loans will include additional costs for insurance and a slightly higher interest rate.

        2. Credit scores: You will most likely need a score of 730 for the best rates, whereas the average score for an FHA borrower is about 690. Financial advisors strong urge you to obtain a copy of your credit report six months before loan shopping (you are entitled to one free report from each of the three bureaus annually at www.annualcreditreport.com) and examine it carefully to detect any errors/misinformation.

        3. Documentation: Be prepared! Lenders will ask for a great deal of documentation regarding your salary, savings, job stability, debts, and the like. You will need to provide pay stubs for the past 30 days; W-2 forms for the past two years; bank, retirement, and investment account statements; and a listing of debts and monthly expenses. Monthly housing expenses should not exceed 28% of your gross monthly income, and total debt should be less than 37% of that amount. If you are self-employed, you will also have to submit two years of tax returns and possibly a profit-loss statement.

        4. Appraisals: Gone are the days of a sure-thing, easy appraisal. Lenders today want a thorough inspection of both the interior and exterior or your Chester County real estate, and the less money put down, the more extensive the scrutiny of the home’s market value. It is wise to include an appraisal contingency in your offer so that your earnest money deposit will be returned to you if the appraisal fails to meet the negotiated price.

How can you find the best rates? Check out available interest rates daily and discloses the best “par rate.” In addition, if you provide contact information, the site will forward that information to the local lender offering the best rate.

If you are considering refinancing your Chester County real estate, take advantage of this calculator to help determine if this is a good financial move for you.

You should also avail yourself of the consumer-friendly good faith estimates (GFE) that lenders are required to give you and with which you can compare offerings. (Search online for “HUD + good faith estimate” for an example.) This form clarifies the type, rate, and features of the loan for which you’re applying. These rates are guaranteed, and if the charges are underestimated, the lender, not you, if responsible for the difference.