Be Eco-Wise with LED Lighting.

Chip Plumley

Prudential Fox & Roach REALTORS®


With more and more people concerned about the environment, building and decorating green has never been more popular. One of the easiest ways for homeowners to limit their environmental impact is to consider replacing the lighting inside their home.

Incandescent bulbs waste energy and burn out quickly, and when the more energy-efficient fluorescent bulbs outlive their usefulness, they pollute the earth with the toxic mercury they contain. A new lighting revolution is giving homeowners an innovative option.

The LED Difference

Light Emitting Diode (LED) technology provides homes with beautiful illumination while reducing the negative environmental impact of traditional bulbs. Here's why it is fast becoming the leading eco-friendly choice:

* LED lights are long lasting: 20 Years.

LED provides uncompromising light that will last 20 times longer than a traditional incandescent bulb and 5 times longer than a compact fluorescent bulb (CFL). You may never have to change your bulb again because each light is estimated to last 50,000 hours.

* LED lights use less energy: 85 percent less.

Incandescent and fluorescent bulbs consume substantially more energy than LED's. You can easily observe this based on the amount of heat they give off. LED options generate almost no heat and consume a whopping 85 percent less energy than incandescents and 50 percent less than flourescents. For example, 8 LED retrofit recessed replacement bulbs consume only 96 Watts and provide enough light for an entire room.

If every U.S. homeowner replaced one incandescent bulb with an LED, it would have the same effect as having 4 million fewer cars on the road.

* LED lights produce less waste: No hazardous toxins in your home.

Because the LED lights last so long, there is less waste going into landfills. Unlike compact fluorescent bulbs, these lights do not contain dangerous mercury. You won't have to worry about disposing of the bulbs properly or having toxins within your home.

What are the best LED options for retrofit recessed can lighting?
Because the technology is still new and options vary widely, no industry standards currently exist. Replacement bulbs are cost efficient even with a price point of $129 each.

Adding LEDs to Your Home.
Homeowners are using LED lights anywhere they have 6-inch recessed cans installed. LED retrofit replacements are easy to install and can be screwed into existing recessed lighting fixtures. Some existing fixtures or housings may require minor modification. Although you may want to hire a handy man to help with installation, many homeowners are able to complete the task themselves. An expensive electrician should not be required.

The eco-friendly LED replacement costs vary on different Web sites. This is a small price to pay considering the average cost to replace incandescent bulbs over 20 years is $166 at current prices, plus there's the added energy savings of $265 or more based on current energy costs.

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. All information is guaranteed reliable but should be personally verified by you and/or your representative.

ChipPlumley.com

The Home Selling Process From Start to Finish.

Chip Plumley

Prudential Fox & Roach REALTORS®


You’ve made the decision to sell your home. Even if you’ve sold a house before, this process can be daunting because it is a major financial transaction that involves many steps from selecting a sales professional and marketing the home, to negotiating with buyers and finally receiving funds at the closing. Yet, the home-selling process doesn’t have to be intimidating if you know what to expect. The process can be divided in nine steps.

Step 1: List your property with a real estate professional.
Select someone who is knowledgeable, listens carefully, and with whom you feel comfortable. Interview at least three real estate professionals. Use their listing presentations to compare their preparation and professionalism. Don’t base your selection solely on selling price or commission. It’s probably best to avoid working with someone who promises you the moon—in this case, an unrealistically high price—then has to make price reductions until the property sells. Instead, focus on marketing plans, service and past results.

Step 2: Establish price and time frame.
Determining a fair asking price is crucial in this market. Price the property too high and it could languish on the market. Of course you could always decrease the price later, yet you’ve lost potential buyers. Your real estate professional can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. Supply and demand, craftsmanship, amenities, condition and any special circumstances can also impact price. For instance, a relocation move might necessitate a quick sale.

Step 3: Develop and implement a marketing strategy.
To get the most exposure for your home, you should have a marketing plan with clear objectives and an outline of specific resources to be used. Your plan should include a mixture of conventional and online marketing to optimize your reach to potential buyers.

Step 4: Get Your Home in Show Condition.
Remember, you only get one chance to make a first impression. So make sure your home is in tip-top shape inside and out. Eliminate clutter and remove personal items. Refresh the paint, clean the carpets and make minor repairs. Keep the grass trimmed and add color to your landscape. You may also want to consider hiring a professional to stage your home. A home in move-in condition is much more attractive to buyers in a competitive market.

Step 5: An offer is submitted.
Once your home is on the market, a buyer will make an offer through his/her real estate sales professional. The buyer’s sales professional will present the offer to your representative, who will promptly relay it to you and help you evaluate the offer.

Step 6: The negotiation process begins and eventually an offer is accepted.
One of the most critical roles played by your real estate professional is in the negotiation phase. Negotiations over the terms of a home-purchase contract can be extremely sensitive. The process of offer and counter-offer may go on until parties arrive at an acceptable contract, which can go very quickly or take days, even weeks.

Step 7: Buyers submit a loan application and home inspections are scheduled. Most often, the loan approval is contingent upon a satisfactory appraisal and various inspections.

Step 8: The loan is approved and the closing process begins.
Once the buyer’s home loan has been approved, preparations begin for the closing. The closing, also referred to as settlement or close of escrow, is the final step toward completing the sales transaction between the buyer and seller. During this process, your sales professional will funnel all the necessary closing documents to the escrow agent. This may include the deed, mortgage, tax receipts, a Certificate of Occupancy and other documents. A final walk-through will also be scheduled. Once the escrow agent receives the paperwork and the funds pertaining to the sale of the property, the escrow is closed.

Step 9: Time to move!

Of course this is a simplification of what is otherwise a complex transaction. As you are going through each stage of the process, look to your real estate professional to provide guidance so that you feel comfortable every step of the way.

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. All information is guaranteed reliable but should be personally verified by you and/or your representative.

ChipPlumley.com

Owning A Home Has Its Benefits

Chip Plumley

Prudential Fox & Roach REALTORS®


Opportunity is knocking for those considering homeownership for the first time. Historically low interest rates, lower home prices in most markets and the first-time homebuyer tax credit – part of the American Recovery and Reinvestment Act of 2009 – brought first-timers to the market in droves during the first half of the year.

In fact, these consumers represented about half of home sales logged during much of 2009’s first two quarters, according to the National Association of REALTORS®, a significant increase from historic levels. And the favorable conditions that prompted many of these buyers are likely to continue. Even the first-time homebuyer tax credit – set to expire now on April 30th, 2010 – got a second wind as legislation passed in both houses to extend it into the new year and expand it to help repeat buyers.

Today’s opportunities aside, here are eight time-honored reasons why those considering homeownership for the first time should make their move.

1. Pride of Ownership
Owning your own home adds to your own sense of self-esteem and personal pride. The satisfaction that comes from feeling connected to the land you occupy and the home in which you live is ages-old.

2. Security of Tenancy
With homeownership comes stability. When renting, you never know when you may have to move because of new ownership, rent increases or other changes. As a homeowner, you decide when and if you want to move.

3. Privacy
While there are usually some limits on the access landlords have to property, almost all landlords can access your property for necessary inspections and maintenance. For many renters, this lack of privacy is a significant discomfort. Homeowners on the other hand generally have much stronger property rights and experience an increase in perceived and actual privacy.

4. Decorating
Homeowners are free to decorate, remodel and accessorize a home any way they want. Not only do you have the right to make improvements, but the value of those improvements becomes yours as well. Having your living space and exteriors just the way you want them can significantly increase your satisfaction with your living environment.

5. Financial Predictability
When you buy a home with a fixed-rate mortgage, you have more predictability over future housing costs. Because your interest rate never changes, the amount of your payment never changes. Financial planning and credit are more easily managed with a fixed-rate mortgage compared to renting.

6. Building Equity
When you own your own home, you pay rent to yourself instead of a landlord. Most homeowners pay for their purchase by obtaining a mortgage. As you pay off that mortgage, your equity builds and you gain an increasingly larger share in a valuable asset. Over time, that asset can work for you in many ways, such as home equity lines of credit. And of course, a home is a wonderful asset to pass along in an estate.

7. Investment Appreciation
There are certainly no guarantees of property value appreciation. In the long-term, however, real estate valuations almost always increase. This means that when you decide to sell your home, its value may be significantly higher than when you purchased it. The difference in value is called appreciation. You can reinvest that appreciation in other real estate or you may wish to downsize and keep the value of that appreciation for retirement or other purposes.

8. Tax Benefits
In the United States, the cost of home mortgage interest and property taxes are usually tax-deductible. Depending on your circumstances, thousands of dollars in taxes can be saved each year. These tax savings are not limited to federal taxes either. Many states and localities either base their tax system on the federal system or offer similar incentives to homeownership. Some additional benefits are designed specifically for first-time homebuyers. See your tax advisor for additional information.

If you still have doubts, contact a real estate professional in your community. He or she can answer questions you may have about homeownership and explain the buying process to you.

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. All information is guaranteed reliable but should be personally verified by you and/or your representative.

ChipPlumley.com

The Updated Federal Tax Credit for Housing Part 2: The Repeat Home Buyers

Chip Plumley

Prudential Fox & Roach REALTORS®


The Repeat Home Buyer…The Basics.

Ever wonder if the first time home buyers are buying, what happened to the people that were selling them their homes? Obviously they moved, but the majority of the time it was either a “move up/down” purchase or they relocated.

Now for the good news. I guess someone in Congress asked the same question and now they are giving you an incentive to purchase a home and qualify for up to $6,500. Even if your next home is less expensive!

How is this tax credit different than the last one?
The prior tax credits only applied to first time home buyers and not repeat buyers. You need to purchase and occupy a home by April 30th, 2010 or have a binding contract IN FULL FORCE and settle before June 30th, 2010.

Who is eligible for the $6,500 tax credit?
The definition of a “qualified move-up buyer or repeat buyer” is a home owner who has owned and resided in a home for at least 5 consecutive years out of the last 8 years prior to the purchase.
WHAT?
If you have owned a home for more than 5 years and have lived in it for 5 continuous years out of the last 8, then you qualify. Let’s say you lived in a home consecutively for 10 years but for the past 2 years you have been renting it out. If you sell that home and purchase a new one as your primary residence, you may qualify for the tax credit. Married taxpayers need to show the history of both people.

Are their income limits?
Yes. $125,000 for a single taxpayers or $225,000 for married taxpayers filling jointly. There is also a chance to qualify for a prorated amount if you MAGI (Modified Adjusted Gross Income) is respectively $145,000/$245,000.

What homes qualify for the tax credit and does it include new construction?
Just like the first time home buyers, most homes under $800,000 and will be used as a primary residence, will qualify for the tax credit. This includes single-family detached homes, townhouses/row homes, condos, manufactured homes (aka mobile homes), and even houseboats.
A home that is constructed and occupied by the time periods above will be considered purchased on the date you first occupy the home. Even if you already owned the land and just hired a contractor to construct a home, you still may qualify. Also the home cannot be purchased from a family member.

I really want to buy a larger/small home, but I just don’t have the extra money for closing costs or a down payment.
Here is a little encouragement and don't worry, you are not alone. HUD is allowing buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes. These funds may be used for certain down payment and closing cost expenses.

What is a tax credit and how does it apply to my income tax return?
The best example would be if you owed $5,000 on your income tax return and qualified for the full $6,500 tax credit…you will get back $1,500!
Keep in mind that the tax credit is 10% of the purchase price with a maximum credit of $6,500. If you buy a $50,000 property, then you may only qualify for up to $5,000.

This is just the basics of the new tax credit for repeat buyers. I would HIGHLY recommend that you work with a qualified real estate agent, mortgage representative, accountant or financial advisor, attorney and anyone else you need to in order to make an informed decision. Also remember that everyone and every situation is a little different. Something that happened to a friend might not work best for you!

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. All information is guaranteed reliable but should be personally verified by you and/or your representative.

ChipPlumley.com

The Updated Federal Tax Credit for Housing Part 1: First Time Home Buyers

Chip Plumley

Prudential Fox & Roach REALTORS®


The First Time Home Buyer…The Basics.

If you have purchased a home before November 6th, 2009 and you qualified for the Federal Tax Credit, you have nothing new to know about. However, if you will be purchasing a home after that, there is great news for everyone!

What has changed since last time?
The major differences are the income limits have increased, the deadline was extended, and the documentation required has tightened to prevent fraud.

How do I qualify and what does “up to” $8,000 mean?
First, the “up to” $8,000 is related to the purchase price of the home. The bill states that you will receive a 10% tax credit based on the purchase price of the home, up to a maximum of $8,000. As an example if you purchase a home that is $50,000 you would only get back $5,000 or 10% and not the full $8,000. Now, if you purchase a home for $500,000 you may qualify to get the full $8,000 instead of $50,000 since the maximum is set at $8,000.

To qualify as a first time home buyer you need to fall under all the following categories:

1. A first time home buyer may not have owned a home as their primary residence in the past 3 years. If you are married and one of you has owned a home in the past 3 years, you will not qualify as a first time home buyer. However, unmarried joint purchasers can allocate the credit amount to any buyer who qualifies.
2. You must purchase a home between January 1, 2009 and on or before April 30th, 2010. However the law also allows home sales occurring by June 30th, 2010 to qualify IF they are due to a binding sales contract IN FORCE on or before April 30th, 2010.
3. The income limit is set at $125,000 for a single person or $225,000 for a married couple. IF your limits are $145,000/$245,000 you may qualify for a portion of the tax credit based on a Modified Adjust Gross Income scale.

What homes qualify and does it include new construction?
Most homes, under $800,000 and will be used as a primary residence, will qualify for the tax credit. This includes single-family detached homes, townhouses/row homes, condos, manufactured homes (aka mobile homes), and yes even houseboats.
A home that is constructed and occupied by the time periods above will be considered purchased on the date you first occupy the home. Even if you already owned the land and just hired a contractor to construct a home, you still may qualify.

I really want to buy a home, but I just don’t have the money for closing costs or a down payment.
That is a very popular response and you are not alone! Here is a little encouragement. HUD is allowing buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes. These funds may be used for certain down payment and closing cost expenses.

What is a tax credit and how does it apply to my income tax return?
The best example would be if you owed $5,000 on your income tax return and qualified for the full $8,000 tax credit…you will get back $3,000!

This is just the basics of the new tax credit for first time home buyers. I could probably type forever just to answer all the questions we face every day. I would HIGHLY recommend that you work with a qualified real estate agent, mortgage representative, accountant or financial advisor, attorney and anyone else you need to in order to make an informed decision. Also remember that everyone and every situation is a little different. Something that happened to a friend might not work best for you!

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. All information is guaranteed reliable but should be personally verified by you and/or your representative.

ChipPlumley.com

5 Tips For A Greener Home.

Chip Plumley

Prudential Fox & Roach REALTORS^®

Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we've become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being "green" with these five tips:

Change Your Light Bulbs

By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.

Buy ENERGY STAR® Appliances

ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.

Seal Up

Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won't shrink or crack, creating less waste.

Use Less Water

Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.

Adjust the Thermostat

When adjusting your home's thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.

Going green doesn't have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a "greener" place.

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.

ChipPlumley.com

Green & Budget Friendly Ways to Improve Your Garden.

Chip Plumley

Prudential Fox & Roach REALTORS^®

Landscaping evokes visions of dollars and debt, but it doesn't have to leave you pining away for a nicer yard. With just a little bit of cash and good weekend or two of hard work, you can transform your outdoor spaces. Rethink what it takes to make your yard more hospitable, because it really doesn't take as much as you think.

You'll make the most impact in your yard by simply cleaning up what's already there. This will take some time, but doesn't have to be expensive. Rake up stray twigs and leaves, put all the rocks back in their place, and trim the bushes and trees. With the excess growth out of the way, you can take a fresh look at your yard and decide what to do from there.

Use "people-powered" tools
What are the costs of yard clean-up? It doesn't have to be that bad. Rather than buying the power leaf blower, hedge trimmer and weed whacker, invest in a good set of manual tools that can cost much less. They just require a little work -- consider it your weekend workout. A good pair of hand trimmers can make quick work of those overgrown shrubs, and tidy up the borders of your grass. Believe it or not, you can still get a hand edger at any hardware store; the first time might take a bit more work, but if you stay on top of it, edging can be a simple bi-weekly touch-up.
The best part about using people-powered tools is the impact on the environment, or lack of impact. Even electric leaf blowers have their carbon footprint because so much electricity is still supplied by power plants that aren't as green as they can be.

Plant inexpensive annuals
By now, most garden centers have a great supply of impatiens, marigolds and begonias. While some varieties can be pricey, like New Guinea Impatiens, select the hardier "base model" impatiens instead. Keep it simple to make a positive impact on your budget.
Not sure what flowers to choose? Take a look at your yard. Where will you put the flowers? Next, take a day to check out how much sun that spot gets. If it's sunny all day long, stick with the marigolds. If it's shady all day, the impatiens are your best bet. Somewhere in the middle? Begonias.
When planted in the right areas - meaning getting the right amount of sunlight - these plants don't require large amounts of water to stay healthy. However, there are some perennials that require even less water -- check out daisies, day lilies and peonies.
Planting a flower bed doesn't have to be hard, either. Once you figure out where you want the flowers to go, you know you have to get out the shovel and remove the grass that's already there. Shake out any excess dirt from the clumps of grass, and put the grass in a yard waste bag. Loosen up the soil, then smooth it back out with a plain old garden rake. It should be loose enough so that you can use a hand trowel (a tiny shovel) to make holes for the plants. After taking the individual plants out of the temporary containers, pull a little at the roots to loosen them up. By "tickling the roots," you encourage them to spread out after planting. Plop them in the hole and backfill the hole with dirt. Water well, and you're done.

Use "natural stuff" to feed your yard
Composting isn't hard at all and it takes very little cash. Some people designate an area by simply calling it their compost pile. Gather leaves and other dead organic matter from your yard in one pile. Add some kitchen scraps, like fruit and vegetable peels (never meat or dairy), mix it all up and let it bake. After a few weeks, mix it up again. You can use a shovel, a garden rake, or spring for a pitch fork for this job. Keep a casual eye as you turn it every few weeks. Soon you'll see moist, dark soil emerging. Once you have a good mound of compost, add it to your flower beds in a thick layer. You can even get that garden rake out again and mix the compost in with the soil already in the flower bed. The compost will provide beneficial nutrients to the plants, and you avoid chemical fertilizers.

Here's your list of tools so far:
* Shovel
* Pruners
* Hand loppers
* Hand trimmer
* Garden rake
* Yard rake
* Pitchfork, if you feel like splurging

Check out your yard. By now you've purchased some gardening tools that you'll use for years to come. You've purchased some annuals and maybe some perennials. So far, you haven't spent more than a couple hundred bucks. You got some exercise, and reduced carbon emissions by not using power tools. Next, take a look at your finances and see if you have the cash to do more. From here, you're adding things to your yard that make you happy, and improve the look of your yard and add value to your home.

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.

ChipPlumley.com

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