Winter Is Approaching....Is Your Home Ready?

Autumn winds blow a chilly reminder that winter is fast approaching. Perform the following maintenance tips each fall to protect your property's value and prevent major repairs.

Roof, Gutters and Downspouts
Rain, ice, snow and wind can all cause damage to your roof and gutters. Now’s the time to trim back all tree limbs and vegetation away from the roof. You also should remove debris, such as leaves and sticks from your gutters and downspouts. Clogged gutters don’t allow water to properly drain away from the home, which can cause seepage in your ceilings and walls. You can also invest in gutter guards, a screen that prevents debris from entering the gutter and directs the flow of water away from the house and into the ground.

Water Heater
You don’t want to find out that your water heater isn’t operating properly when you need it most. So use this time to perform an annual inspection, which includes having your tank’s pressure and temperature relief valve checked. In addition, remove sediment from the bottom of the tank by draining two gallons of water to improve heat transfer and the efficiency of your heater.

Heating and Cooling System
If you have a forced warm-air heating system, you should check the exhaust vent and air shutter openings for dirt and dust. Clean any lint and dirt from the blower blades, motor and burner (if you have a gas heater). Vacuum air passages and check and replace, if necessary, fan belts. To prevent airborne dirt from circulating throughout your home, wash out your reusable filter or replace it if it’s disposable.

Doors and Windows
To help control heating costs, make sure your doors and windows are properly sealed. Now is the time to repair or replace weather stripping around door bottoms and jambs and window frames. Check for loose or missing glazing putty and caulking for deterioration. If you have storm windows, install them.

Water Pipes
Frozen or burst pipes can cause major damage to your home and be expensive to remedy. Before frigid weather hits, protect your pipes in unheated areas from freezing by adding insulation, which reduces heat loss from hot-water pipes and condensation on cold water pipes. This can be accomplished by wrapping the pipes with heating tape or blanket insulation and duct tape or by encasing the pipes with preformed plastic foam. In addition, examine your pipes for cracks and leaks.

Fireplace
Before you light the logs and get ready to settle in front of a cozy fire, make sure that your fireplace is in good working order. Clean the chimney flue and, if needed, have it inspected and repaired. Check the seal on your flue, which is designed to keep out drafts. Replace the seal if it is loose or damaged.

If you decide to perform the fall maintenance yourself, disconnect the power for any electrical or gas systems. In addition, before inspecting, cleaning or making any repairs refer to your owner’s manual for all equipment for proper instructions, which should be the final authority on any maintenance.

Outdoor Surfaces and Landscaping
Fall is also a great time to seal your driveways, wood patios and other hardscape surfaces. In addition, prune tree branches away from your home and electrical wires. Plant spring flower bulbs and move sensitive potted plants indoors.

Although this list is merely a guide, it can help you keep your home in good shape and have a winter free of major repairs.

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

Pre-Approved Today, May Not Be Tomorrow!

If you are pre-approved for a mortgage today, you may be surprised when you’re not next month!

Interest rates, along with income and debt, are used to show how much buying power you qualify for. This affects both buyers and sellers in the market. If interest rates go up, buyers can’t afford as much and sellers may be marketing their home to buyers who were originally looking at homes in a higher price range.

According to John Gamlin of Trident Mortgage Company interest rates, as of November 5^th, 2010, were at 4.25% for a 30 year fixed rate and 3.75% for a 15 year fixed rate.

Let’s assume that a first time buyer qualifies for a $250,000 FHA mortgage at 4.25%. By putting down only 3.5% ($8,750) the monthly principal and interest payment is $1,186.80.

Here’s what happens when interest rates go up:

Interest Rate	New Monthly Payment
4.5%	$1,222.38
4.75%	$1,258.47
5.0%	$1,295.08
6.0%	$1,446.42

Yes, I have had clients who could afford up to a certain amount and all of a sudden, get turned down when the interest rate went up .25%!

Now look at the difference of how much money you can afford and
still keep the $1,186.80 principal and interest payment:

Interest Rate	New Home Value
4.5%	$242,426
4.75%	$235,472
5.0%	$228,816
6.0%	$204,876

Don’t forget that in April of 2010, interest rates were at 5.25% and in October they were at 4.125%. In this same scenario, the April P&I payments would have been $1,332.19 and the October P&I payments were $1,169.22. $163.97 a month cheaper!

Will interest rates be at 6% next month…I don’t think so, but it is possible for them to go above 5% by the end of the year. Many economists don’t foresee rates going lower and are predicting a significant increase just in time for the spring market.

Another major factor, according to the National Association of REALTORS^®, is that a typical home owner lives in their home for an average of 7 years. If appreciation goes up a modest 1% year of year, you could build up almost $60,000 in equity!

End Of Year Mortgage Balance	Year over Year Appreciation	Equity Amount
$237,182.91	$252,500	$15,317.09
$232,939.54	$255,025	$22,085.46
$228,512.30	$257,575	$29,062.7
$223,893.20	$260,151	$36,257.8
$219,073.92	$262,752	$43,678.08
$214,045.77	$265,380	$51,334.23
$208,799.72	$268,033	$59,233.28

Just imagine if the year over year appreciation went up 2% or you made an extra principal payment each year!

Out of all the reasons to purchase a home, especially during this time of the year, interest rates are probably the most important of them all.

If you’re a buyer who is “sitting on the fence” and waiting for something spectacular to happen, you may miss one of the biggest opportunities to take advantage of the lowest rates in history! It could mean the difference of buying a $250,000 home today or a $200,000 home tomorrow.

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

Home Not Selling? It's Not Personal, It's Probably Something Else.

Home sellers face a new reality as they look to move up, down, in or out of their American dream in today’s market. Consumers, particularly those who purchased their homes within the last five years, often find their options limited by a lack of equity. Those who can sell are sometimes numbed by deflated home prices and find it difficult to justify yesterday’s valuations with today’s reality.

Many home sellers have dug in on price hoping to lose no additional ground. Others seem to have taken this market personally, letting emotions override analysis when setting price. Buyer sentiment has shifted as well, centered on maximum value with abundant amenities – resulting in stalemates and homes languishing on the market. Both sides should be realistic as comparable sales and local-market dynamics still determine fair-market value.

And there are compelling reasons to be realistic and make a move now. Sellers, assuming their objective is to buy another home, can capitalize on some of the lowest mortgage interest rates on record and an inventory of homes at attractive prices. So while they will sell for less, they will also buy for less and with significantly cheaper borrowing costs.

Of course, professional sales representation is essential this transitioning market or any other. The Prudential Real Estate Network, recently recognized for “Highest Overall Satisfaction for Home Sellers Among National Full Service Real Estate Firms” in J.D. Power and Associates’ 2010 Home Buyer/Seller Study sm, is composed of true, local-market experts whose experience, analysis and consultation generate results in all market conditions.

As the local experts, they’ll help set fair-market prices using factual reference points, such as an appraisal, comparables sales and personal knowledge to help estimate market value. Today, a house priced at or slightly below market value will attract the interest of real estate professionals and buyers, while overpricing chases them away. Even if the sellers adjust their prices later, it’s difficult to recapture buyer interest.

Sales professionals develop comprehensive marketing strategies to sell a home. They generally use open houses, yard signs, Internet exposure, MLS, newspaper ads, brochures and other means to market properties.

Beyond that, they counsel sellers on other conditions that may keep sellers’ homes on the market, including:

• Condition and appearance.

Sellers shouldn’t rely on buyers to use their imagination; they need to capture it. Remember that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious, and the most cheerful. This invariably means rearranging and eliminating furniture, removing excess knickknacks and so on, to create an open, uncluttered look. Outside, do a visual check of the front of the house from across the street. Does it have curb appeal? It should look inviting, with a trimmed lawn and a freshly painted front door. A real estate professional can offer some guidance in this area.

• Terms/conditions.

Even if the home is accurately priced, and the buyer is delighted with what he or she sees, if the buyer can’t live with the terms of the sale, he or she may walk away. Keep an open mind on terms and conditions and evaluate how they may affect a potential sale.

• Incentives.

Offering incentives can be just the impetus a potential buyer needs a buyer needs to choose your property over others. Consider offering a carpet or paint allowance. If the buyer knows up front there is allowance for the worn carpet or paint, then may overlook those cosmetic flaws. You could pay for a professional home inspection or a home warranty, or pay closing costs.

Indeed, real estate opportunities abound for sellers and buyers who can come to terms with today’s market conditions. A qualified real estate professional will help you navigate the market, protect your interests and keep you moving toward your housing dreams.

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