Thanksgiving Treat: Lower Mortgage Rates

It’s pretty amazing that mortgage rates are near record lows while home prices are down.   It’s true, though, and it’s a little something extra to be thankful for this time of year.

Lancaster County PA real estate has not seen the ridiculous fluctuations that have hurt so many areas of the United States.  Yes, we’ve felt the impact of the “real estate bubble” of last decade but we have also been fortunate that the result in our area hasn’t been quite so tragic.  Helping matters is the fact that mortgage rates remain very, very low.

For example, it’s possible to get a 30-year fixed-rate home loan in most areas with an interest rate between 3.875% and just over 4%.   Mortgage payments including both principal and interest are around $477 for each $100,000 on the loan.

If you want to see what the mortgage would be for a property or properties you’re interested in, Google has a nice free mortgage calculator page that also compares rates from numerous financers as well:  Google Mortgage Calculator/Mortgage Comparison.   It’s very easy to use, too!

Rents have risen nationwide over the past few years to where the tables have turned and buying a home is a better option than renting in this economy.  In fact, Trulia has reported that buying a home is cheaper than renting in a whopping 74% of major U.S. cities.  Obviously this is different from market to market, but the above mortgage calculator will help you decide for yourself and your personal situation:)

A recent article on Lancaster Online has more details about this and also offers some basics to remember so you’re not blinded by what appears to be a “good deal’:

• Safety and quality schools help home values in general.
• Spend no more than 25% to 30% of your pretax income on housing and no more than 36% of your pretax income on debt payments (that means your mortgage plus credit card, auto, student and other loan payments).
• Have a significant rainy day fund to cover home repairs, household emergencies and possible unemployment.

For more tips and hands-on help with Lancaster County PA real estate , give me a call at (717) 413-2749

Help for Unemployed Homeowners

This past August, HUD introduced a revamped version of last year’s Home Affordable Unemployment Program.  In that original program, unemployed homeowners could get a three-month forbearance on their mortgage payments while they looked for a job.

Unfortunately, the program was not a resounding success.   In fact, the number of people who qualified for this aid was shockingly low.  Only 10,000 of the 13,000,000 (million) unemployed in the United States qualified for the aid, which was also only a three month forbearance…not much when you consider that nearly half of those who are unemployed have been unemployed for at least 6 months.

The new and improved version of the program increased the three months significantly to twelve months, a very welcome relief to homeowners dealing with unemployment. If you are an unemployed homeowner, the program is worth checking out.

If you want to find out if you’re eligible for the program, according to the MakingHomeAffordable.gov website, the following criteria must be met:

• You are unemployed and eligible for unemployment benefits
• You occupy the house as your primary residence.
• You make your request for help before you’ve missed three payments.
• You have not previously received an UP forbearance or HAMP modification.
• You obtained your mortgage on or before January 1, 2009.

Visit the website for more information or simply call your lender, as many lenders are participating in the program.  If you have an FHA loan, your lender is automatically participating.

For more tips and hands-on help with Lancaster County homes and real estate, give me a call at (717) 413-2749

October is Fire Prevention Month

October is National Fire Prevention Month, and with that in mind here are some resources to help you with fire prevention and safety in your Lancaster county home.

One of the best things about the Internet is that so many information resources that used to be difficult to obtain or just flat out unattainable are now at our fingertips.  The fire safety checklist below is compiled from some of these resources, and I’ve included some links to those resources as well for your convenience.

• When you’re cooking, always stay in the kitchen.
• Keep dishtowels, paper or plastic bags, curtains and anything that can burn at least three feet away from the range top.
• Keep grills at least 10 feet away from all other objects, including the house.
• Store lighters and matches in a locked cabinet to make them unattainable to children.
• Keep space heaters at least 3 feet away from things that can burn, such as curtains or stacks of newspaper.  Always turn off heaters when leaving the room or going to bed.
• Have chimneys, fireplaces, wood and coal stoves and central furnaces inspected once a year and cleaned when necessary.
• Make a fire escape plan for your family with two exits out of every room.  Pick a meeting place outside.  Hold a family fire drill at least twice each year.
• Install smoke alarms on every level of your home.  There are two kinds of smoke alarm sensors – photoelectric and ionization.  Try to buy some of each kind or get “combination” smoke alarms with both kinds of sensors.
• Put smoke alarms inside or near every bedroom.  Test monthly to make sure they work. Replace batteries once a year.

You can find more information on fire safety for your home at www.homesafetycouncil.org.

More resources:

FREE fire safety toolboxes for kids and adults

Home Fire Safety powerpoint

For more tips and hands-on help with Lancaster County homes and real estate, give me a call at (717) 413-2749

 

Making The Most of The Space In Your Home

When friends and relatives come by to visit you, you want everyone to be comfortable. With a little forethought and ingenuity even a smaller home can be more spacious than you could have imagined.

Rather than just a bunch of rooms that are only used for their originally-intended purpose, your home can be a reflection of your personality and a flexible extension of your lifestyle.

Rooms can serve a dual purpose if you have limited space in your home, and these tips will help you open up your thinking and make the most of the space you have:

Your living room can be the best multi-purpose room in your home. A simple drop-front style secretary with shelves and drawers can turn your living room into a craft or hobby area by day, while you can close everything up for dinner parties or entertaining in the evening.

If you don’t really have formal dinner parties, your dining room can be used as a home office. If you have a fireplace, a coffee table with cushions in front of it can make a very fun and cozy dining area. Of course, if you use a dining room table for your workspace, you can store your work materials in another room if you need the table for guests.

Your bedroom can be a quiet retreat with the addition of built-in or freestanding shelves. Add a recliner or other comfortable chair and a nice lamp and you can easily turn part of your bedroom into a “library.”

Click here for a nice post on even more ways to create space in your home.

For more tips and hands-on help with Lancaster County homes and real estate, give me a call at (717) 413-2749

Safety and Security After The Sale

So, your move is over and you have unpacked the many boxes and are arranging furniture and such.  Now is a great time to do a safety and security check of your new Lancaster County home.

Here’s a checklist to get you started:

• Check your home for loose floorboards and/or tiles
• Check the smoke alarms. Are there smoke alarms on each floor? Put fresh batteries in each smoke alarm when you move in.
• Check all handrails. Are they secure and sturdy?
• Put all of your transaction records in a safe place where you can easily access them for tax time, etc. These records probably include:- Closing documents and any loan papers
  – Property deed
  – Warranty information
  – Repair receipts and home improvement receipts
  – Insurance policies

  Taking care of these details right when you move in will ease your stress and make settling into your new home a much more smooth, easy and enjoyable process:)  Click the picture above for a checklist you can print out.

  For more tips and hands-on help with Lancaster County homes and real estate, give me a call at (717) 413-2749

Do Those Home Improvements REALLY Add Value To Your Home?

Many years ago, there were home owners who had a swimming pool added in their back yard.  They believed that while they certainly would enjoy many hours swimming, the pool would actually add value to their home.   Still today there are many misconceptions about what adds true value to your Lancaster county home and can make it sell for a higher price.

Some sellers have found out the hard way that modifications they perceived as adding value actually do the opposite, especially in today’s market.   The aforementioned swimming pool has been a common culprit in past years.

NAR (National Association of Realtors) releases reports periodically that clarify what adds value and what doesn’t.  Here is a checklist from some of those NAR reports to help you determine what improvements you really want to make for your home:

• Security systems, as well as  family rooms and dining rooms tend to add the most value
• Central AC can add up to 12% to the price of a home.
• Adding an extra bedroom adds only about 4% to your home’s market value.
• Remodeling to add additional living area isn’t as “value-added” as you might think.  In fact, adding up to 1,000 square feet of living area increases market value by as little as about 3%.
• Having a finished basement, on the other hand, can increase market value by about 9%.
• Adding an additional bathroom, on the other hand, can add 24% to your home’s value.
• Having a garage can increase your home’s value by about 13%.
• Advertising your home as a “fixer-upper” can decrease market value by 24%.

If you’re thinking about remodeling your Lancaster county home (or wherever you are located), use these guidelines to help you be smart with your money and manage realistic expectations.  If you’ve already invested in remodeling, these guidelines will help you understand what you’ve done that actually adds value and what doesn’t.

Contact me if you would like help in making the right home improvement decision or if you would like a clearer picture of what to expect when you put your home on the market:)

For more tips and hands-on help with Lancaster County homes and real estate, give me a call at (717) 413-2749

Home Values Are Ever-Changing, Especially New Construction

“More value for less money.”
“More for less.”It’s what we all want whenever we spend money on anything.    We want to feel like we spent our hard earned money wisely…especially when we’re committing to a large purchase such as a home.

There’s an insightful article on Lancaster Online which really shows how competitive the buyers market has become.If you’re a home owner with your home on the market or are even thinking of selling your home, it’s important to remember that your home is competing with new construction.  Many people don’t stop to think about that and unfortunately many real estate professionals don’t spend enough time explaining this to their clients.

It has never been more true than in today’s market, as the “bigger better faster more” mentality of builders in the past has given way to a more stripped-down mentality of creating new floor plans for homes that will price at $200,000 or less.   Here is an excerpt of the Lancaster Online article:

“Ryan McMinn thought the first home he bought would be a town house.  Until he realized he could purchase a new, single-family residence for not much more than he’d pay for a town house.  Before beginning his search, “I honestly didn’t think” that would be possible, said McMinn, who rents an apartment in Mount Joy’s Florin Hill development.”

With the residential construction boom of the previous decade only a memory, builders have been forced to adjust to a very different market. And while the so-called McMansion era may not quite be over, today’s buyers tend to be less interested in oversized foyers and other bells and whistles.

Some contractors have adapted by offering single-family floor plans priced at less than $200,000 — a prospect that was unheard of in Lancaster County a few short years ago.

Larry Wisdom, president of Keystone Custom Homes, said nearly 25 percent of th e 200-plus Keystone houses that have sold or gone under agreement this year are singles priced at less than $200,000.”

There are a few points to remember as a buyer or a seller:

1)  Builders are coming down on their floorplan prices because they have to in order to compete with the existing home prices which have plummeted over the past decade.

2)  Let’s face it…most new construction lacks the creativity, uniqueness and forethought of homes built 15 years ago or more.  There, I said it.  The price of a new home was lower and homes were more unique and less “cookie cutter.”

3)  To sell your home on the creativity and uniqueness of its design still requires you to do proper maintenance and put fresh coats of paint on the walls, etc.  No matter how nice and unique your home may be, it still has to feel like a great value for the money to the buyer.  The more fresh and new your home looks, the better you will compete with new construction.

Closing Time (And Beyond)

The “Real Estate Bubble” – it’s a term we’ve all become quite familiar with in the past 5 years, referring to the upward acceleration of home values (in our case, Lancaster county home values) at the time.

In the wake of the real estate bubble bursting, it has become apparent that the majority of buyers and sellers are not exactly sure of what real estate professionals actually do in the transaction process.  There’s often a perception that agents basically put a sign in your yard and wait, perhaps because during the boom that’s all many agents actually did across the nation.

Real estate professionals wear many hats…pricing, marketing, negotiating and consulting (just to name a few).   The reason my slogan is “Celebrating 22 years of guiding people home” is because  once the purchase and sale agreements have been signed, my work for you is far from over.   There are still more steps to close the transaction:

Removing contingencies, such as financing and the sale of the buyer’s current home.   The sale can’t close until these conditions are removed or waived.

Property appraisal.  The buyer’s lender requires a formal appraisal confirming the value of the home, which will be used as collateral to secure the loan.

Preparing the closing documents.  Usually a real estate attorney prepares documents to confirm the transaction, pro-rate funds, etc.

Signing the closing documents.  The sale may take a few more days to close, even after both parties have signed the closing documents and deposited funds.

Recording of the deed and disbursing of funds.

Receiving the proceeds and welcoming the moving van.

Turning the keys over to the buyer.

There are many opportunities for surprises or delays in a real estate transaction.  The more you understand what it is that I do for you in your Lancaster County real estate transaction, the better we can work together.  Part of my work for you is troubleshooting problems that arise in the closing process and with communication, to ensure that you have the best experience possible:)

For more tips and hands-on help with Lancaster County homes and real estate, give me a call at (717) 413-2749.