Real Estate Information

The death of one partner in a marriage can have significant consequences for a mortgage.  Exactly what effect it has will depend on whether it is a single or joint mortgage, what balance remains on the mortgage, and other debts and assets of the deceased.

• In the case of a couple having a joint mortgage, the death of one spouse will simply mean the other spouse becomes the sole mortgage-holder. As long as she can continue making the payments, the property will be unaffected.  Federal law prohibits the lender from calling the entire mortgage due because one spouse has passed away.
   
• If the mortgage is only in the name of the deceased and she had more assets than debts, then the state will pay off the mortgage as part of the probate process. The worst-case scenario is that the house may have to be sold to pay the mortgage off if there aren’t enough other assets to cover the outstanding amount. However, when there is no will and assets are distributed to heirs according to the intestacy laws of the state, the surviving spouse is always one of the first in line to receive the remainder of the deceased’s assets after debts, taxes, and funeral expenses are paid. If the mortgage can be paid off through other assets, in many cases, the spouse would receive the paid-off home as his share of the estate.
   
• If the surviving spouse sells the house within two years of the death, has not remarried prior to the sale, and meets required conditions, she has the right to exclude up to $500,000 of her profit from the transaction.  For further information read US Government Publication 523.
   
• If the surviving and now sole-owner of the home realizes he is not going to be able to continue make mortgage payments for a long period of time, he may want to look into a reverse mortgage.  A reverse mortgage is a loan for senior homeowners that uses a portion of the home’s equity as collateral.  The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance.

Information provided by Chester County PA Realtor Scott Darling.

There are many factors that go into the decision to buy a home. One of those factors is how long you expect to stay in the home. This applies whether you are a first time homebuyer or stepping up to a larger home. The length of time you stay in a home affects the financial outcome of that ownership.

Here’s a summary of some thoughts from moneyning.com and the 5-year rule for buying a home. There is a tendency for younger buyers to go through 3-year upgrade cycles. Why? Newer and younger buyers typically experience significant increases in income in their younger years.

As income increases their ability to afford a larger mortgage increases and the desire for a larger house sets in. There seems to be an assumption that buying is more cost effective than renting. Click here for a perspective on ownership costs vs. rent. That thought process occurs, on average, every three years.

The 5-year rule states that generally you should plan to stay in a home you’re buying for at least five years. That is for two primary reasons…

• The first reason is closing costs. Every time a home changes hands both the buyers and the sellers put money on the table just to make the transaction happen. These costs can easily add up to thousands of dollars. Those dollars provide no real financial benefit to the buyers or sellers except to allow the transaction to happen.
   
• The second reason is the payment of interest on the mortgage. A mortgage payment has two components – payback of the principal of the loan borrowed and interest on the amount borrowed. Because typical mortgage payments remain the same during the life of the loan the proportion paid on the two components changes. In the early years the payment is almost all going to pay interest and very little to principal. As the principal is gradually paid down the portion going to interest diminishes and the portion going to the principal increases.

According to author Thursday Bram “it isn’t until you’re about five years into paying down your mortgage that you’ve made enough progress on the principal to make it a better deal than paying rent each month.”

Here’s how to beat that average…don’t buy the biggest house you can just because a lender tells you what you can afford. Instead, consider buying smaller and then adding extra money to your monthly payments. That extra money will go entirely to paying down the principal loan – that means you will pay less interest over the life of the loan and you will create more equity because you are diminishing the principal balance faster.

However, if you’re not going to stay in your home five years you should probably consider renting.

Information courtesy of Chester County PA Realtor Scott Darling!

The big move - it should be in all-caps and announced with a deep, authoritative voice. THE BIG MOVE. And it's coming to your family soon. It might be from one house to another across town, or it might involve crossing many state lines. No matter the distance, amount of belongings or number of people, your big move is going to be a big deal.

There are ways to plan for your move so the big event doesn't overwhelm you. Here are five moving tips you with your big move.

1. Less is better –

The less you have to move, the easier your move will be on your body and your wallet. It will also be easier to fit everything into your new house. While packing, create three piles. The first is your "must-go" pile. The second is your "must-sell" pile, which includes anything you haven't used in the last year, anything you have multiples of and anything you just don't want any more. The third is the "must-throw" pile, and it contains anything that can't be sold at a garage sale or donated. Start creating these piles now, and it will make moving day much easier.

2. Stock up on supplies –

Big boxes might seem like a great idea because they can hold so much stuff, but what happens when you try to lift one and carry it down a flight of steps? Stock up on boxes of multiple sizes, but keep in mind that smaller is much easier to carry. Also stock up on foam and bubble wrap to protect your fragile items, a good supply of packing tape and bold markers for labeling boxes. You'll also want to have moving blankets and hand trucks to make it easier to transport your items.

3. Rent a truck –

One trip makes the big move simple, even if you're just moving across town. Most movers find the 12- or 16-foot truck perfect for moving a few large items or the contents of a small condo or apartment.

4. Pack smart –

Load the heaviest items on the truck first. When you've got a sturdy base of the heaviest items, you can start stacking on top. This is when it's handy to list a box's contents on its side. If you have friends and family helping, they'll know not to set books on top of your china.

5. Safety and security -

Trucks are taller, wider, heavier and require more stopping distance than the vehicle you are used to driving. Take extra precaution, especially when the truck is loaded. Watch out for low-hanging tree branches and building overhangs, and use extra caution when cornering. To protect your belongings, park in well-lit areas and padlock the rear door. To make sure you've got everything you need on moving day, create a travel bag for keeping important paperwork, credit cards, identification, a change of clothes, drinks and snacks close at hand.

As you cross days off on the calendar and the big day approaches, these tips will help you sail through the event with few conflicts. Before you know it, you'll be settled in your new home. (BPT)

Those winter chills are finally history and it's time focus on outdoor fun again. Your lawn is the perfect spot for family gatherings, sports competitions, barbecues and relaxing afternoons, so why not make it the best it can be? Before your calendar fills up, apply these five tips and your lawn will be in great shape for the entire season.

• Clean up. Whether it was packed under the snow or blown in by the wind, the winter season leaves more than its fair share of debris behind. Grab a rake and get started raking up all of this garbage. Once the lawn is clean, apply a thin layer - about a quarter-inch thick - of compost to give your lawn a boost and start it in the right direction.
   
• Reseed the bare patches. Your travels around your lawn to rake up debris will probably reveal some bare patches. If you do happen upon a patch of barren ground, loosen the top 2-4 inches. Level the soil with your garden rake and cover the area with a mixture of grass seed and fertilizer. You could also replace the fertilizer with compost. Pat the surface with the flat end of the rake when finished to ensure the seed remains in place. Water as necessary.
• Aerate your lawn. Aerating allows oxygen, water and other nutrients to reach your grass's roots, and it's one of the best things you can do to support your lawn. Travel across your yard with a manual or gas-powered aerator, punching holes in the ground. Make sure to pass over each area only once. After you've finished aerating, spread compost, fertilizer or peat moss over your yard. The fertilizer will be absorbed quickly through the holes created by the aeration.
   
• It's time to mow. Optimal grass length is 2.5-3.5 inches, so cut your grass as frequently as needed to achieve this length without cutting more than third of each grass blade. Mowing high and often will produce a heartier lawn that is more adept at keeping weeds away, as well as making it less susceptible to heat and drought.
   
• Add color and contrast. Landscaping adds immediate scenic interest to your space and allows you to showcase your creativity as well. If you choose to add annuals or perennials to your space, plant them in odd numbers and in tiny pockets around the yard - this produces a more natural appearance. You can also add a centerpiece to your yard, such as a sculpture, fountain, fire pit or horseshoe pit. Any of these focal points provides a gathering place and an excuse to enjoy relaxing afternoons on your beautiful lawn all season long. (BPT)

You probably already know that you can invest your IRA money in stocks and bonds and even in mutual funds if you so desire, but did you know that you can also invest those IRA funds in real estate?  Doing so, however, is a bit complicated, and IRS rules concerning such purchases must be followed to the letter.  

Usually, when you take money out of an individual retirement account before you reach age 59 1/2, the IRS considers these premature distributions. In addition to owing any tax that might be due on the money, you'll face a 10 percent penalty charge on the amount.  This is not the case, however, when you use the money to buy your first investment real estate.  (Note: Technically, you don't have to be purchasing your very first home or building. You qualify under the tax rules as long as you, or your spouse, didn't own a principal residence at any time during the previous two years.)  You can use up to $10,000 in IRA funds toward this purchase. If you're married, and you and your spouse are both first-time buyers, you can each pull from retirement accounts, giving you $20,000 to use.

The restrictions are many (and perhaps time-consuming) and include the following:

• You will need to find an IRS custodian who handles these investments (and the options are currently limited).  Generally banks and brokerage firms do not handle IRA distributions for real estate transactions.
   
• Only the custodian may handle your IRS funds.
   
• The type of property you buy must be for investment only and may not be used by you or by relatives. 
   
• All proceeds from the investment will go back into your IRA fund.  Likewise, however, all expenses must be paid from that fund, so you must have enough liquidity in your IRA to cover such costs.
   
• You must let the IRS know that you used the retirement money early for a tax-acceptable purpose by filing Form 5329.
   
• You must use the IRA funds within 120 days of withdrawal to pay qualified acquisition costs. This includes the costs of buying, building or rebuilding a home, along with any usual settlement, financing or closing costs.

The above information applies only to traditional IRSs.  To learn about the procedure for an Roth IRA, click here.

Information courtesy of Chester County PA Real Estate Expert Scott Darling.

For much of the country, winter woes are forgotten as the literal “greening of America” begins, and warmer weather, blossoming trees, chirping birds, and colorful flowers signal a time of rebirth and renewal.  Life is good…

…and demanding.  Spring requires much of a homeowner, and home maintenance checklists remind the often-harried proprietor  that it’s time to inspect the roof, repair the deck, check for cracks in concrete, repaint exterior trim, recondition lawn mowers, grills, and garden tools, and refurbish outdoor furniture.

Not quite ready to tackle such large, time-consuming chores?  Consider, then, easing into the requisite activities by initially taking on smaller, non-time-consuming tasks that generate a feeling of accomplishment while providing a gradual transition into the big jobs.

Granted, the majority of these items are for the interior of your home, but they’re important, too, and a far cry from the annual rug-beating, wall-scouring spring cleaning of yesteryear.

A sample of the” start-off-small” responsibilities includes the following:

• Shut off the water to the washing machine, remove the water supply hoses and examine them and the washers. Replace worn and damaged ones.
• Dust ceiling fan blades.
• Change or washing bathroom shower curtain liners.
• Test the pressure and temperature relief valve on the water heater by opening it and allowing some water to flow out. If little or no water flows out or it doesn't shut off, replace it. Bad valves can cause explosions.
• Clean the garbage disposal. Grind two trays of ice cubes made from a mixture of one cup white vinegar to one gallon of water.
• Check fire extinguishers to make sure they are not outdated, have lost pressure, or are damaged.
• Move throw rugs, mats, and area carpets and clean underneath them.
• Remove mineral deposits from faucets and shower heads.
• Thoroughly clean the refrigerator—one section at a time.  After six or seven mini-sessions, the entire job will be complete.

Finished?  Ready to take on tasks requiring a bit more time, know-how, and energy but guaranteed to bring peace of mind and the satisfaction of knowing your home is well-maintained?  Check out Princeton Online for monthly suggestions.

Information courtesy of Chester County PA Realtor Scott Darling.

Selling your home can sometimes be a daunting task; however we are going to talk about a few ideas of how to make selling your home a little bit easier.      

• One way to make your home stand out when you put in on the market is to stage it.  By this I mean make it look like a model home by taking down your family photos and adding a few decorations to match whatever season it may be at the time. 
• While your Realtor is showing your house, be sure to have a few candles lit and some relaxing music playing in the back ground for the potential buyer to enjoy.   Little things such as this will help to make a buyer much more at ease and to feel at home. 
• Be sure to have the yard looking nice and neat when you have a potential buyer coming to tour your home.  If you have kids and they have toys or bikes in and around the yard, be sure to put them up where they will not be seen.  Keep in mind you want the potential buyer to be able to envision themselves living in the home and if there are too many reminders of you and your family they may have a hard time doing this. 
• If you really want to make your potential buyer feel at home, leave a plate of warm cookies out for the showing.  Leave a little note out offering for the people touring your home to take one or two cookies and to enjoy them.  Your Realtor may have other ideas of what types of snacks you can leave out. 
• Be sure to clean from top to bottom and to put away anything that may be lying around.  Do not leave laundry lying around.  Even clean laundry laying on the floor or bed can make a home look messy and uninviting.  Remember you want your potential buyer to feel calm and at ease when touring your home and we all know that laundry usually makes us feel anything but calm and at ease. 

Hopefully these tips will get you started in the right direction for selling your home without much hassle.  A good Realtor can go a long way towards selling your home but you can do your part to help out and make sure your home stands out above all the others.  You want your buyer to remember your house and it’s my guess if you make them feel comfortable and relaxed while there, they WILL be back!

Information courtesy of Chester County PA Real Estate Expert Scott Darling.

Take a look at February​’s real estate sales broken down by school district.

Downingtown School District

The number of homes selling in the Downingtown school district in February 2015 dropped by 23.26% when compared to February 2014. The average selling price decreased by 4% to $368,749. The median selling price dropped by 10.95% while the average market time decreased by 8 days.

West Chester School District

The number of homes selling in the West Chester school district in February​ 2015 decreased by 3.7% when compared to February​ 2014. The average selling price increased by less than 1% to $329,940. The median selling price increased by 2.08% while the average market time increased by 13 days.

Coatesville School District

The number of homes selling in the Coatesville school district in February 2015 increased by 26.67% when compared to February​ 2014. The average selling price decreased 2.23% to $222,607. The median selling price decreased 4.2% while the average market time grew by 2 days.

Great Valley School District

The number of homes selling in the Great Valley school district in February 2015 increased by 18.18% when compared to February​ 2014. The average selling price decreased less than 1% to $497,492. The median selling price dropped by 15.58% to $369,450, while the average market time decreased by 12 days.

Unionville School District

The number of homes selling in the Unionville school district in February 2015 increased by 50% when compared to February​ 2014. The average selling price increased 5.72% to $451,083. The median selling decreased 2.52% while the average market time dropped by 45 days.

Tredyffrin-Easttown School District

The number of homes selling in the Tredyffrin-Easttown school district in February​ 2015 increased by 20.83% when compared to February​ 2014. The average selling price decreased by 9.54% to $496,004. The median selling price rose less than 1% while the average market time increased by 12 days.

Owen J Roberts School District

The number of homes selling in the Owen J Roberts school district in February 2015 increased by 53.85% when compared to February​ 2014. The average selling price increased by 20.73% to $385,152. The median selling price increased 49.79% while the average market time decreased by 9 days.

Phoenixville School District

The number of homes selling in the Phoenixville school district in February​ 2015 decreased by 28.57% when compared to February​ 2014. The average selling price decreased 8.49% to $261,651. The median selling price increased by 4.45% while the average market time decreased by 35 days.

Curious about the value of your home? Get your home's value here!

Information provided by Chester County Realtor Scott Darling.

Whether you are remodeling your home to get it ready to go on the market or you are making some changes to the home you just moved into, it doesn’t have to be a nightmare.   In this blog post I will give you a few tips on how to make your next remodeling project a good experience.

1. Get hold of a set of plans for your home so that you will be able to take accurate measurements  of doorways in small areas such as the bathroom.  This will insure that you don’t end up with a door that is positioned in a way that is inconvenient for everyone.
    
2. Make sure that you place outlets in areas in which they will be easily accessible.  Also be sure not to place outlets in wet areas where you may be at risk for electric shock. 
    
3. When remodeling your kitchen be sure to place your appliances in an area that will have adequate clearance.  There is nothing worse than opening the dishwasher and realizing that you cannot open it all the way because there is a wall in the way. 
    
4. When moving light fixtures over to make them fit in the center of your table, be sure that you have enough excess chain to make it look pretty and that it won’t end up looking like it was not intentional.  If you are a little OCD, this kind of thing will bother you immensely if you do it wrong.
    
5. Test your new paint color on the wall before you paint an entire room.  Paint is not always the color on the swatch once it is dry.  If you can get away with only purchasing one color and stick with that one color you will save yourself a lot of money and time. 

Keep these helpful tips and ideas in mind for your next remodeling project and you should come away from it feeling as if you have accomplished something great rather than feeling like you never want to tackle that type of thing ever again. 

Information courtesy of Chester County Realtor Scott Darling.