Displaying blog entries 121-129 of 129
Sweep out the dust bunnies. Clear away the clutter. Time to put wasted space beneath the staircase to work with customized storage solutions. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Whether you’re buying or selling, it’s important to choose representation that meets your needs in the transaction. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Make your home warm and inviting to boost your home’s value and speed up the sale process. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Here’s how to clean up your credit so you get the least-expensive home loan possible. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Yes, there are still qualified buyers out there, but the supply of Chester County homes for sale is far greater than the demand for them, and today’s buyers can afford to be very selective. Your house may have excellent curb appeal and be beautifully staged, but if you really want to sell in this market, you must be realistic, flexible, and creative when it comes to pricing, availability, flexibility, and motivating the buyer to purchase your property.
PRICING: A few years ago, you probably could have sold your home for what you think it is worth today--or even more--but that is most likely no longer the case. Of course, the thought of taking a loss is a bitter pill for you to swallow, but if that’s what the recent sales in your neighborhood indicate, you may have no choice. It is important that you and your Realtor, after reviewing comparables, be objective and set a realistic price that will draw buyers. Keep in mind that the buyer is looking for the best possible deal and will avoid even looking at an overpriced house.
AVAILABILTY/FLEXIBILITY:
INCENTIVES: Today’s sellers are turning more and more to finding ways to create interest in their property and motivate hesitant buyers. Since builders of new homes offer such incentives, it is becoming commonplace for other sellers to do the same. Examples of incentives include:
Note: if you do offer incentives of any kind, make sure that they are included in your real estate listing.
In our present economic situation, many people are currently facing the loss of their homes. However, because foreclosure is expensive for lenders, mortgage insurers, and investors, the FHA, HUD, Freddie Mac, Fannie Mae, and private companies are being required to work with borrowers who are experiencing money problems. As a result, lenders do have workout options to help you keep your Chester County home. Warning: Do not mistakenly assume that your mortgage situation will correct itself; you must take the steps suggested below to avoid, or at least forestall, foreclosure.
1. ACT NOW! Time is of the essence. Do not ignore letters or calls from your lender. If you do, chances are that action to foreclose will begin quickly.
2. CONTACT YOUR LENDER: When you reach the lender, you should be prepared to provide him/her with your account number; a brief explanation of your circumstances; income documents or evidence of unemployment, public assistance, or business losses; and a list of your household expenses. Ask about a reduced interest rate, refinancing, lengthening the term of the loan, and a repayment plan for missed payments. In all probability, the lender will mail you a loan workout package. It is important that you complete and return these forms quickly.
3. DO RESEARCH; Reread your loan documents to determine what is said about unpaid mortgage payments. Learn about specific foreclosure laws in your state Get in touch with the government housing office where you live.
4. CONSIDER SELLING: Lenders will most likely suspend foreclosure proceedings while your Chester County home is on the market and possibly even eliminate mortgage payments during this time. Explore a short sale. If the market value of your house is less than you owe, your lender may consider taking the sale proceeds and forgiving the rest of the debt. Or you might give your deed to the lender in return for the loan balance being cancelled. Check with an attorney or housing counselor before taking these actions.
5. BEWARE OF SCAMS! Avoid “foreclosure prevention” companies who offer to negotiate with your lender, will cost you thousands of dollars, and may even “rescue” your home away from you. Do not sign anything from these firms!
6. SET PRIORITIES: Pay the mortgage on your Chester County home before paying credit card debts, doctor bills, or the like. Can you sell a second car or other assets? Could you take a second job to ease the situation? Your lender needs to know that you are serious about trying to find a solution to your financial problems and are willing to make sacrifices to do so.
7. EXPLORE ALL OPTIONS:
a. Get legitimate help. Contact a HUD approved housing counselor (1-800-569-3287) or 1-888-995-HOPE) for free or low-cost guidance. Help is also available from the National Foundation of Credit Counselors (1-866-557-2227). Also, check with your local bar association or a neighborhood legal services program for pro bono legal representation.
b. Look into government benefits such as fuel assistance, food stamps, or property tax abatements to help you through this difficult period.
It is important that you be both aware and proactive in your fight to keep your Chester County home!
Congress recently extended the home buyer tax credit closing date to September 30. The measure would give more time to thousands of qualified home purchasers, who through no fault of their own are unable to meet the current closing deadline of June 30; however the measure would not extend the deadline for home buyers to qualify for the tax credit. The deadline extension applies only to homebuyers who have ratified contracts in place as of April 30, 2010, but could not close before June 30.
The April 30 deadline created a surge of home sales in April. Let’s take a look at the local Chester County real estate market for June.
Downingtown Area School District saw a 8% increase in sold listings in June 2010, compared to June 2009. Pending listings have decreased by 36% and active listings have decreased by 29%. There was a 2% increase in average sales price to $339,082, while market times decreased by 8 days.
|
Downingtown |
Active |
Pending |
Sold |
Average |
Average |
|
June 2010 |
82 |
43 |
79 |
$339,082 |
63 |
|
June 2009 |
115 |
67 |
73 |
$333,783 |
71 |
In the West Chester Area School District, there was an increase in Sold listings of 27% when compared to June 2009. While pending sales decreased by 31% in June 2010 when compared to June 2009. Average sales price increased by 4% to $375,664 and active listings decreased by 9% from June 2009. Market times have decreased by 7 days.
|
West Chester |
Active |
Pending |
Sold |
Average |
Average |
|
June 2010 |
150 |
75 |
136 |
$375,664 |
69 |
|
June 2009 |
165 |
109 |
99 |
$360,876 |
76 |
Sold listing have increased by 11% in the Coatesville Area School District in June 2010 when compared to June 2009. The average sales price increased by 2% to $233,785 and active listings decreased by 15%. The number of pending home sales decreased by 60% when compared to June 2009, while homes were on the market on average 23 days more than in June 2009.
|
Coatesville |
Active |
Pending |
Sold |
Average |
Average |
|
June 2010 |
112 |
28 |
70 |
$233,785 |
99 |
|
June 2009 |
132 |
70 |
62 |
$230,159 |
76 |
A word of caution...markets within a school district can be very different from neighborhood to neighborhood. For the latest Chester County PA real estate market conditions in your neighborhood, please call me at 610-564-SCOT or visit ChesterCountyHomeSource.com.
Scott Darling Earns Prestigious Designation to Help
Homeowners in Danger of Foreclosure
Scott Darling of RE/MAX Action Associates in Exton, PA has earned the prestigious Certified Distressed Property Expert® (CDPE) designation, having completed extensive training in foreclosure avoidance, with a particular emphasis on short sales. At a time when millions of homeowners are struggling with the possibility of foreclosure, the skills and education accumulated by Darling will help benefit Chester County area 
residents and communities.
Short sales allow the distressed homeowner to repay the mortgage at the price that the home sells for, even if it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
Today, more than 13 percent of homeowners are delinquent on their mortgage or in the foreclosure process. This is occurring across all price ranges, and the fastest-growing category of homes in foreclosure is the luxury home market.
“The CDPE designation has been invaluable as I work with homeowners and lenders on complicated short sales,” said Darling. “It is so rewarding to be able to help families save their homes from foreclosure.”
Alex Charfen, co-founder and CEO of the Distressed Property Institute in Austin, Texas, said that agents such as Darling with the CDPE Designation have valuable perspective on the market, and training in short sales that can offer homeowners real alternatives to foreclosure, which can be devastating to credit ratings.
“These experts better understand market conditions than the average agent, and can help sellers through the complications of foreclosure avoidance,” he said.
The Distressed Property Institute provides live and online courses to train real estate professionals how to help homeowners in distress, with a particular emphasis on handling short sales.
“Our goal is to help as many homeowners as possible, by educating as many real estate professionals as possible,” Charfen said. “Darling has demonstrated a commitment to the struggling homeowners, and will provide much-needed assistance in stabilizing the community.”
Are you or someone you know behind on mortgage payments? Don't delay! Contact Scott for a personal consultation. He may be able to help you save your home and your family!
Something to consider when selling your home is the Capital Gains ramifications. Will you owe Uncle Sam money after the sale of your Chester County home? Capital Gains are calculated as the difference between what you paid for your property and what you sell it for. Here is how you calculate your Capital Gains.
Calculating Capital Gains
(+) PURCHASE PRICE - Price paid for property
(+) COST OF PURCHASE - Transfer fees, attorney fees, inspections
(+) COST OF SALE - Repairs, commissions, attorney fees, inspections
(+) COST OF IMPROVEMENT - Room additions, deck, for example, though not replacing existing
(=) ADJUSTED COST BASIS OF YOUR HOME
(-) AMOUNT YOU SELL YOUR HOME
(=) CAPITAL GAIN
A Special Real Estate Exemption for Capital Gains
Even though the above calculation may indicate you owe Capital Gains, there is a special real estate exemption. Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a Chester County home is exempt from taxation if you meet the following criteria:
NOTE: As of 2003, you may also qualify for this exemption if you meet what the IRS calls "unforeseen circumstances" such as job loss, divorce, or family medical emergency.
Learn more about selling your Chester County home by visiting ChesterCountyHomeSource.com.
Search all Chester County homes for sale.
Always consult a tax attorney regarding current tax laws.
Displaying blog entries 121-129 of 129
