End of home buyer tax credit unlikely to deter local real estate buyers.

The expiration of the 2010 Home Buyer Tax Credits on April 30 is unlikely to put off residents looking to purchase homes, according to Prudential Real Estate.



Trends in local markets underscore national survey data showing consumers more concerned about home prices, interest rates and unemployment.

This reflects the results of a new Prudential Real Estate and Relocation Services, Inc., a Prudential Financial, Inc. [NYSE: PRU] company, national survey which reveals that consumers believe now is a good time to buy and are confident that home prices will rise. The survey of 1,000 Americans between the ages of 25-64 with at least $35,000 household income was conducted during April 15-20, 2010.

In the national survey more than 90 percent of consumers believe that the home buyer tax credits have helped both first-time home buyers and the U.S. housing market overall. Among consumers actually shopping for homes, 65 percent believe that the end of the tax credits will have little or no effect on their interest in purchasing a home.

While consumers remain unsure about the direction of the housing market, the survey reveals that they are optimistic about real estate values with 46 percent of consumers expecting real estate prices in their area to increase over the next year. Just 12 percent expect prices will decline. Over the next five years, 79 percent expect real estate prices to increase, with 20 percent expecting that prices will increase substantially.

The federal home buyer tax credits clearly played an important role on a national and local level. The survey data shows that overall consumers believe the market has hit bottom and are more optimistic about the future.

Survey respondents identified concerns about rising mortgage interest rates and unemployment as the most important factors affecting their decision to purchase a home, along with more stringent lending criteria and fewer mortgage-backed securities purchased by the Federal Reserve. The expiration of the tax credits placed lowest on their list of concerns. Among those who have recently purchased a home, 61 percent cited low mortgage interest rates as “very important” to their decisions – an amount greater than either the tax credit or even cheaper prices. The 66 percent expecting interest rates to rise underscores potential headwinds for the market.

Despite the significant downturn in the real estate market, the survey underscores that the dream of home ownership and the perception that owning a home is a good investment remain intact. Among current renters, 75 percent still believe owning their home is a better long-term choice for their needs than renting. The majority of consumers also believe that homeownership is a better investment than individual stocks or bonds (75%), mutual funds (72%), or savings accounts (74%).

While the tax credits clearly helped stimulate the market, the more pressing concerns of people looking at homes in Chester & New Castle Counties is the availability and cost of financing, as well as if they will have a job. Despite the market downturn, consistent with the national survey data, the majority of our clients are more confident and, importantly, continue to believe that owning a home is a good investment.

The Prudential Real Estate Outlook Survey was conducted online. The margin of error is+/- 3 percent. A more detailed breakdown of the data is also available with supporting Charts and Visuals.

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

Successful Homeselling - 7 Tips For Staging Your Home.

Make your home warm and inviting to boost your home's value and speed up the sale process.

The first step to getting buyers to make an offer on your home is to impress them with its appearance so they begin to envision themselves living there. Here are seven tips for making your home look bigger, brighter, and more desirable.

1. Start with a clean slate

Before you can worry about where to place furniture and which wall hanging should go where, each room in your home must be spotless. Do a thorough cleaning right down to the nitpicky details like wiping down light switch covers. Deep clean and deodorize carpets and window coverings.

2. Stow away your clutter

It's harder for buyers to picture themselves in your home when they're looking at your family photos, collectibles, and knickknacks. Pack up all your personal decorations. However, don't make spaces like mantles and coffee and end tables barren. Leave three items of varying heights on each surface. For example, place a lamp, a small plant, and a book on an end table.

3. Scale back on your furniture

When a room is packed with furniture, it looks smaller, which will make buyers think your home is less valuable than it is. Make sure buyers appreciate the size of each room by removing one or two pieces of furniture. If you have an eat-in dining area, using a small table and chair set makes the area seem bigger.

4. Rethink your furniture placement

Highlight the flow of your rooms by arranging the furniture to guide buyers from one room to another. In each room, create a focal point on the farthest wall from the doorway and arrange the other pieces of furniture in a triangle around the focal point. In the bedroom, the bed should be the focal point. In the living room, it may be the fireplace, and your couch and sofa can form the triangle in front of it.

5. Add color to brighten your rooms

Brush on a fresh coat of warm, neutral-color paint in each room. Ask your real estate agent for help choosing the right shade. Then accessorize. Adding a vibrant afghan, throw, or accent pillows for the couch will jazz up a muted living room, as will a healthy plant or a bright vase on your mantle. High-wattage bulbs in your light fixtures will also brighten up rooms and basements.

6. Set the scene

Lay logs in the fireplace, and set your dining room table with dishes and a centerpiece of fresh fruit or flowers. Create other vignettes throughout the home-such as a chess game in progress-to help buyers envision living there. Replace heavy curtains with sheer ones that let in more light.


Make your bathrooms feel luxurious by adding a new shower curtain, towels, and fancy guest soaps (after you put all your personal toiletry items are out of sight). Judiciously add subtle potpourri, scented candles, or boil water with a bit of vanilla mixed in. If you have pets, clean bedding frequently and spray an odor remover before each showing.

7. Make the entrance grand

Mow your lawn and trim your hedges, and turn on the sprinklers for 30 minutes before showings to make your lawn sparkle. If flowers or plants don't surround your home's entrance, add a pot of bright flowers. Top it all off by buying a new doormat and adding a seasonal wreath to your front door.

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

Consumers Are Returning to the Real Estate Market with an Age-old Question: Buy or Sell First?

Chip Plumley

Prudential Fox & Roach REALTORS^®

Residential real estate is gaining stability in concert with the recovering U.S. economy. Consumers, drawn by one of the most attractive buyers’ markets on record marked by historically low interest rates and lower home prices in many areas, are returning to the market to move up, trade down, improve location and otherwise enhance their share of the American Dream.

When it comes to home buying, the ideal situation would be to find a new home, just as you receive an offer on your existing home. You would then be able to close concurrently and move into your new home a few days prior to closing on your previous home. This does happen more often than not, but anyone looking to buy a new home needs to consider all the possible scenarios.

Should you buy or sell first? There are many schools of thought on this subject. Ultimately, it depends on you and your situation. For instance, can you afford to pay two mortgages in the event your previous home does not sell by the time you move? Would you consider a bridge loan (a short-term, high-interest loan that lets you borrow against the value of your old home to covers the bills until you secure the new, larger loan)? Are you willing to move twice to find the home of your dreams if you sell first and can't find the dream home fast enough?

This is where the advice of a real estate sales professional is invaluable. Real estate sales professionals know the current market conditions. They are trained and experienced in working with home buyers and sellers to determine an ideal time to buy and sell.

It is generally less stressful to sell your home first, because you won't have to worry about owning two homes at one time. The market will dictate how long it will take for your home to sell, as will the property’s location and the time of year. As a rule of thumb, it is a good idea to put your home of the market as far in advance as possible when purchasing a new one. But, since interest rates are low and confidence is returning to the market, there’s a good change your home will sell faster if priced properly. (Again, your real estate professional’s advice is critically important here.) In that case, you may want to purchase a new home first.

What if your present home sells before you find a new one, putting pressure on you to find the right house more quickly? You may then decide to make an interim move or request to rent back your home for a specified amount of time as you continue to look for your new home. Those may be worthwhile options if you have your heart set on a specific location or type of home or if you are purchasing a home that is under construction.

If you buy a home before selling your present home, you may end up with two mortgages. Under those circumstances, you may be able to apply for a bridge loan to assist you in making two mortgage payments until you sell your first home. Your real estate sales professional can assist you in finding a lender.

So should you buy or sell first? This is a challenging question regardless of real estate cycles, yet your own circumstances and a knowledgeable real estate professional will help you make the right decision.

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

FHA 203(k) - Popular Loan Program That Your Typical Lender Won't Tell You About

Chip Plumley

Prudential Fox & Roach REALTORS^®

Have you been searching for the right home, but all you can find are homes that need work? Homes that are in a great location selling at a reduced price because they need a little repair shouldn't deter you away!

Unfortunately, most mortgage loan programs require most repairs to be done before the money is released for settlement. A typical first time homebuyer doesn't have the upfront cash to invest into the work that needs to be done. Maybe the home only needs minor repairs like upgrading windows or new carpet. Maybe the home needs to be completely gutted down to the studs. Either way, it is hard for someone to have enough in savings to invest in a home of this nature.

HOWEVER, there is a highly popular program that is rarely talked about and used. The FHA 203K Rehab Loan is an excellent alternative to turn a "fixer upper" into your dream home. This loan is designed for buyers that can afford to finance the cost of the improvements into one loan.

The entire FHA 203K loan is made up of the purchase price as well as the pre-determined improvements you are either required to complete or want to complete. Think of it as a construction loan.

The best part for the seller, they WILL receive all the money they are entitled to at settlement. The extra money is put into an escrow account that will be used to pay for the repairs and/or renovations.

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD) offers the loan program to owners of a primary residence that includes condominiums, town homes, and single family homes. They can also be a single family dwelling up to a maximum of 4 units. NO INVESTORS looking to flip or rent properties.

There are two types of FHA 203K Loan Programs (Explained quickly in a nut shell):

Streamlined K:
If you're looking to make minor changes to a home and the total costs must be between $5,000 and $35,000.

The process is simple. Find the right home for you and submit an offer. If the offer is accepted, make sure it states you are getting an FHA 203K loan, you then meet with contractors to determine what work is being done. You WILL need to submit the contractors estimate to the lender.

Now the lender will order an appraisal. The appraisal will determine what the home's value is once the work has been completed. Keep in mind that you need to qualify for the final value of the home since you are financing the home and work.

After that, you go to closing like normal and the money for the repairs are put in an escrow account. As the work is completed, the money is paid to the contractor from that escrow account.

Standard FHA 203(k):
Allows you to make substantial structural improvements, repairs, renovations and even build a new one! You can enlarge a house, build a new one (on the existing foundation) or even move the home! Luxury items are not permitted though.

This process is a "little bit" more involved and require an actual HUD Consultant that you choose. They must be approved by HUD and are typically paid based on the amount of work being done.

They meet you at the property and discuss the anticipated improvements. They will do a feasibility study, property inspection report, discuss renovations, prepare a work write up, draw inspections, change orders and final inspection, be a liaison between you, the lender and contractor, insure timeliness and professionalism of work, and to watch over the monies spent on behalf of you and the lender.

That is it in a nut shell! As you can see there is a huge difference between the two and you need to choose wisely.

Obviously the home needs to be safety and codes compliant first, then everything else can be taken care of.

If you are interested in finding the right home you can make "your own" please talk about these programs with you real estate professional and mortgage lender.

This ISN'T a new program and has been around for a long time. However, it's not talked about often because of the amount of work involved. It's "not fast money" for someone who is supposed to be working in your best interest.

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