Start a Bartering Coop and Save Money!

I recently came across an article on starting a neighborhood bartering coop. I had never even heard of such a thing before however due to the current economy I believe it is catching on as I have been hearing this term more and more.

The concept is simple; sharing your skills, talents and services by trading tasks instead of money. This can be within a geographic neighborhood or a members only type group.

A great article with details on "how to" is:

http://www.houselogic.com/articles/start-bartering-co-op/

5 Home Exterior Projects, Ranked.....


Which adds more value to your home: New windows or an upgraded roof? Find out which exterior update brings the best return on investment.

http://www.frontdoor.com/Sell/Home-Exterior-Projects-Expert-Tips-And-Advice-To-Add-Home-Value/55696/?nl=FD_v128_5Exterior

A single family home for the price of a townhome! Come see this lovely 3 bedroom colonial on a quiet side street in very desirable Sturbridge. This home boasts an updated kitchen, an updated main bath and powder room, fresh neutral paint and new carpet throughout as well as ceramic flooring in the foyer, kitchen and dining rooms. Some other features include a large family room with wood burning stove and a master bedroom with dressing area and walk in closet. Entertaining will be a breeze with the expanded drive for extra parking, private fenced yard, new deck with hot tub and paver patio. Located in the award winning Neshaminy School District and convenient to most major roadways. ~Proudly offered at $329,900~

Beautiful Horse Farm in Newtown Township!

Peace and tranquility best describe this 6+ acre property located in a hide-away setting of Newtown
Township. This roomy 4 bedroom, 3 bath colonial offers a large covered front porch, random width hardwood flooring throughout, a first floor den/office with pocket doors, large country kitchen and a master suite that includes a sitting area/office area with built in bookcases as well as a private covered balcony looking down to the in-ground pool & gazebo. The additional 3 bedrooms are a nice size and have ample closet space. One of the homes best features is a wall of windows in the family/sun room that overlook the mature & heavily landscaped grounds with winding pathways, a deck and Koi pond. Some extras are a full basement w/ access to the oversized garage and a large mud room. The equestrian facilities include a 4 stall barn with water & electric, a tack room, pasture and lighted riding ring. With rural charm and a convenient location that is only minutes away from schools, shopping & dining. Proudly offered at $825,000 ~ Call me today to make this gorgeous property yours!

12 Daffodil Place, Newtown Grant

This rarely offered Orleans built Princeton Model is located on a cul de sac in highly sought after Newtown Grant and boasts over 3,000 square feet of living space as well as some unique features that include 2nd floor dormers, an expanded drive trimmed in Belgian block, a custom rear deck with Pergola, paver walkways, a grand front entry with Portico and stained glass transoms on some windows. The dramatic 2 story foyer has hardwood flooring and glass paned French doors accessing the private study/library. The oversized, sunken family room has vaulted ceilings, a floor to ceiling stone fireplace, 2 skylights and a convenient 2nd staircase. A large kitchen with center island offers abundant cabinet space, ceramic tile flooring, a pantry and built in desk. Entertain in the formal Dining Room and Living Room while enjoying the bonus of a 2nd fireplace adorned with a beautiful wood mantle. The master suite has double doors, a dressing area, 2 walk in closets and a private bath with Whirlpool tub, a stall shower, dual vanities and a skylight. Newer roof, HVAC, water heater, appliances and a One Year Home Warranty for peace of mind complete this package!
Check out this property in person at the Open House on Sunday, April 11th, 1 - 3pm!

Pre-Approval vs. Pre-Qualification

If you're shopping for a home, it can be difficult to determine how much you can afford. Your bank might tell you that you've pre-qualified for a loan but what does that mean? How does it differ from being pre-approved? Understanding these terms is essential to figuring out your home-buying budget.

Pre-Qualification
If your bank tells you that you pre-qualify for a loan, it means that they've used your reported income and debt levels to make a general estimate about the size of mortgage you could afford. It's not a comprehensive assessment, and the bank won't seek out information to prove that the figures you provided are accurate.

While pre-qualification can give you a good ballpark range, it doesn't guarantee a mortgage in that amount. Without a full assessment and credit check, the bank can't tell you up front if you qualify. Additionally, when your bank pre-qualifies you, they assume you have excellent credit. This could be a problem, since your credit score impacts your interest rate which will have a large impact on your monthly mortgage payments (and how much you will be approved for).

Pre-Approval
The pre-approval process is more comprehensive and a bit more time-consuming. To get pre-approved, your lender will run a full credit check, and might speak with your employer. You may also need to provide tax returns, bank statements, your W-2 forms and proof of social security or pension payments.

If you are pre-approved, the lender will tell you exactly how much they are willing to loan you. At this time, they will also discuss interest rates and loan types that will best suit your lifestyle.

Which one is best?
Both pre-qualification and pre-approval have their advantages. However, if you're serious about buying a home, take the time to get pre-approved. Many realtors won't work with you unless you are, and the process itself can save you from surprises down the road.

For example, if you pre-qualify, your lender is making an estimate based on your own reported income. The type of income, however, might not meet the standards that your lender has in place. The pre-approval process will tell you this; a pre-qualification will not.

Another advantage of pre-approval is the credit check that your lender will run. Credit reports often include inaccuracies or missed payments you don't even know about. The earlier you discover these discrepancies, the more time you'll have to clear them up.

Pre-qualifications do have some advantages. If you're just starting to consider home ownership and have no idea how much you can afford, a pre-qualification can give you an idea. However, the more serious you are about buying a home, the more you should consider applying for pre-approval. Not only will it give you a better sense of your true buying power, but it will move you one step closer to home ownership.

10 Rookie Home Buyer Mistakes

Great Article from Yahoo Finance................

http://finance.yahoo.com/news/10-Rookie-Home-Buyer-Mistakes-usnews-655381171.html?x=0&.v=1

I agree with all 10 points on this list!

Buyer Representation, A MUST!

When buying a home, it's in your best interest to have your own representation!

In the state of Pennsylvania, if a home buyer is shopping for homes with a real estate agent and that buyer has not signed a Buyer's Representation Agreement with the agent, that agent actually is a subagent of the seller.
In other words, the agent isn't working for the buyer at all and is obligated to act in the best interest of the seller.

Some buyers think they can do all their own research. Some think they can save money by not working with an agent and some think that if they buy a home using the listing agent they will get a much better deal. This simply is not true.

A buyer's agent represents you, the buyer, not the seller, and has full fiduciary duties, including loyalty to you. By definition, the buyer's agent has your best interests in mind throughout the transaction. The percentage of homebuyers with buyer representation has grown significantly in the past decade. According to a recent National Association of Realtors® survey, nearly half (46%) of home buyers used the services of a buyer's agent last year, and four out of every five buyer's agent agreements were in writing.

The benefit of buyer representation is the dedication of a buyer's agent to the home buyer. The buyer's agent and homebuyer establish a mutual agreement, known as a buyer agency agreement that will entitle the homebuyer to, but is not limited by:

•Loyalty
The real estate agent must act in the best interest of the buyer.

•Disclosure
All material facts such as relationships between agent and other parties, existence of other offers, status of earnest money, seller's financial condition, property's true worth, commission split with other brokers, and legal effect of important contract provisions.

•Confidentiality
Any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties.

•Accounting in dealings
Reporting of where any money placed in the hands of the broker is kept.

•Reasonable Skill and Care
Arriving at a reasonable purchase price and advising the buyer of such, affirmatively discovering material facts and disclosing them to the buyer, investigating the material facts related to the sale. With a buyer agency, the interests of the homebuyer will be represented in the purchase of the home. This scenario is different from a typical transaction where the buyer is not technically represented.

For most of us, buying a home is the biggest single investment we're likely to make – and we're only likely to do it maybe once or twice in a lifetime. The process is, by nature, filled with checks and balances - and many complex details. Having your own representation is not just and option, it is a MUST!

Mortgage News, the Good, the Bad and the Ugly!

The good news is that rates are still low; as of the first week of March on a 30 year fixed conforming loan the rate is 5.00% and a 30 year FHA rate it at 5.125%. If you are willing to pay 1/2 a point either loan could possibly be obtained at a low 4.875%!

The bad news is that just weeks before the deadline for the First Time Home Buyer Tax Credit the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA). Starting on April 5th the cost of closing on a home will cost more money! Possibly thousand of dollars more!

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance on FHA loans will jump from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

It is important to note that in order to be eligible for the lower cost up-front mortgage insurance, a lender has to order a case number from the FHA before April 5, 2010. A case number can only be generated for loan applications where a property is involved and a fully executed purchase contract exists. Home buyers who have been pre-approved but are not under contract will not be eligible for the reduced premium effective April 5th.

A great detrimental change is in the amount of money that a seller can return to the buyer from their sale proceeds. Effective April 5, 2010 it will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

For most first time home buyers, the only reason they can even afford to close escrow on a home purchase is because of the seller assistance allowance.

If you have been casually shopping for a home thinking that you have plenty of time to meet the April 30th deadline for the tax credit, it is now time to speed up your game plan.......especially if you were counting on seller paid closing costs!

These changes will certainly make the difference in being able to buy a home or not for some shoppers.

Having grown up in Newtown it is no surprise to me that it's an awesome place to live, but great to know that Philadelphia Magazine has agreed!

Check out this article for yourself!

http://www.phillymag.com/articles/real_estate_2010_10_awesome_neighborhoods_to_call_home/

New Construction Seduction

I have been talking about New Construction Seduction for years. I actually just googled the phrase to see if anyone else was using it. I am pleased to say I may be the inventor of this term!

But what is New Construction Seduction you ask?

New Construction Seduction is when home shoppers become so in love with the process of purchasing a new home that they completely overlook the the number 1 rule of real estate..........LOCATION, LOCATION, LOCATION.

How else can you explain people purchasing new homes that are next to a water tower, facing the back of the Home Depot or in the shadow of that mini, fenced-in utility station, etc.

People seem to get so caught up in choosing carpet, cabinets and fixtures as well as the builder incentives of "free" upgrades, that they neglect to consider the inevitable....a resale nightmare! I see it time and time again, the "flaw" that the new buyer is willing to look past is usually the largest hurdle when they try to sell. Imagine the home being 6, 7 or 8 years old........all that new stuff is now used stuff and one thing remains the same.........that lovely view of the water tower, home depot, utility station.

Always remember, you can change anything about a home except it's location!

Everyone Starts Somewhere

Early on in my real estate career I asked a handful of past clients for testimonials that I could use in my marketing. One of my favorite responses came from a young, first time buyer who said "Your TIME, EFFORT and HONESTY spent on helping me find a
home was your number one priority. You made me feel like I was your only client".

I giggle each time I stumble across this testimonial because truth be told, at that time she was my only client!

The number of years you have under your belt in the real estate business, or lack there of, can be such a sensitive subject. You will usually be able to guess the answer just by the look on the agents face when presented with the question. I would try my best to get away with dodging this question with statements such as, "oh, feels like forever!"

Lets face it, clients don't like to hear that your in you're first year of selling real estate and that your first three deals were your brother, sister and parents! They want to hear that you are highly experienced, seasoned, have closed over a thousand deals and are the top producer of your office.

There are advantages to using a new agent. They have something great to offer you that some experienced agents have lost, TIME! This can be one of the most valuable aspects of your relationship with your agent. Educating you about the home buying process, holding your hand through the pre-approval process, searching for and showing you homes and communicating all through the transaction in a timely manner are all things that take time.

Many newer agents come from other careers altogether such as teaching, paralegal, insurance, business and marketing. They are able to bring skills from these jobs to the table. Selling real estate is rarely a first career for agents.

A new agent is also more likely to have recently completed very extensive training that most large Brokers offer today to their agents. They are more likely to be well informed and up to date on market changes as well as changes in real estate law.

I am not saying that all seasoned agents are too busy to give you the service you deserve or that experience is not important. I am suggesting that when you find a Realtor that feels like a good match and is someone you like and trust, don't cast them aside just because they are newer to the business. You will be pleased when you get their undivided attention and great service!

Home Sales Down in January

The latest report from the National Association of Realtors says that existing homes sales were down 7.2 percent in January 2010.

Hmmm.... I think I may know why.............a picture is worth a thousand words!

Being one of the snowiest winters on record certainly has an effect on the real estate market.

The good news is that they were up 11.5 percent compared to January 2009.

Come on Spring Time!

Home Buyer Tax Credit, the Countdown is on!

With a mere 60 days left to find your dream home and enter into a written contract to purchase it's "game on"!

I can't imagine that this far into the program there would be anyone that doesn't know the details, but just in case, I'll recap.

$8,000 First-time Home Buyer Tax Credit

•The $8,000 tax credit is for first-time home buyers only; someone who has not owned a principal residence during the three-year period prior to the purchase.

•The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years of the purchase.

•The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

•The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. In cases where a sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

•For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit

•To be eligible to claim this tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

•The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

•The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

•The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. In cases where a sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

•Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Also worth mentioning, you will not have to wait to file your 2010 return to receive your credit. Home purchases in 2010 may be claimed on an amended 2009 income tax return.

For additional details please visit the following site brought to you by the National Association of Home Builders:

http://www.federalhousingtaxcredit.com/home

The Risk of a Lease Purchase

I have noticed a recent rise in the number of buyers who ask me about the possibility of a lease purchase. Usually people who are not quite ready to commit to a purchase due to bad credit or lack of funds.

The truth of the matter is that there is an unmanageable level of risk involved with entering into a lease purchase contract.

While the specifics of every lease purchase may differ, the concept remains the same; the buyer/lessee moves into the property while the seller/lessor continues to "own" the property. Rent is paid monthly and normally a designated portion of that rent is set aside toward the purchase. The contract includes a date on which the renter/lessee will complete the purchase, usually one year or the end of the lease term. This type of contract is really a hybrid of an Agreement to Purchase and a Lease Agreement. In Pennsylvania there is no approved form by the Association or Realtors for such a transaction. In my opinion, creating a Lease-Purchase agreement is really beyond the scope of what any licensed real estate agent is qualified to do and I always recommend that the client consult with an attorney.

Maybe so far this doesn't sound too bad..........but what if during your occupancy of the property the seller has stopped paying their mortgage, what if that seller is in serious default and the property is headed for foreclosure or sheriff sale? What if all of this is happening and you are completely unaware of the situation and continue to hand over a rent check month after month, a rent check that is not paying the mortgage or taxes on the home which you are living in and preparing to purchase.

In an effort to try and offer some degree of protection, the attorney who drafts the contract will include wording stating that the seller must immediately make you aware of pending legal action on the property, etc. However, is this really protection? Lets face it, if a home owner is not paying his mortgage he most likely has huge financial problems. You will probably not learn of any problems until the sheriff slaps a notice on the door! You can always hire an attorney and file suit against the home owner, but the likelihood of recouping any of your money is slim.

When it comes to a lease purchase proceed with CAUTION, especially in the current economic climate where so many home owners are headed into foreclosure everyday due to job loss and loans that they just cannot afford.

You are better off working hard to save and spending your money on cleaning up your credit!