Greater Philadelphia Real Estate Podcast with Scott Irvin

Here we are at the end of 2018! Today we’ll be discussing our 2019 real estate predictions. As we all know, in 2018, the markets were very, very good. In the past few weeks, we’ve seen a shift in the market, and we expect that to remain a continuing trend moving into 2019. The driving forces behind that shift are mortgage rates, which were changed by the Fed fund rate. Rates were increased a couple of times in 2018, and by the time this article gets to you, they might have increased yet another time. Rates are also expected to increase as 2019 progresses. What effect will these rate increases have on the market? We expect that they will continue to slow down the markets. Right now, we’re at 5%, which is an eight-year high in terms of interest rates; however, rates in general are still historically low. For 2019, we expect that buyers are going to continue to try to enter the market before those rates rise even more. One thing that could slow that process down is if unemployment rates start to increase. We’re still at historically low unemployment rates, as well, but if that number increases, it will have a negative impact on the market. We don’t have any reason to anticipate that happening in the coming year. Inventory levels are also at an all-time low. This coming year, we’ll likely see inventory rates pick up as well. That means we’ll likely see our days on market increase compared to where it is now. “All in all, we don’t expect any huge increases or decreases in 2019. Likely, we’ll just be riding the highs and lows, but staying overall steady throughout the year.” Additionally, we expect to see a balancing of the market in 2019. We’re coming out of a seller’s market at the moment, so we’ll probably see buyers having more opportunities to get into the market. This will affect sellers, especially those trading up for another home. Since inventory is low, they might be hesitant to list their current home for fear of being unable to find another to buy. They won’t want to take the chance of buying a home while thinking that we’re at the top of the market, which is what many people went through back in the 2008 housing crisis. All in all, we don’t expect any huge increases or decreases in 2019. Likely, we’ll just be riding the highs and lows, but staying overall steady throughout the year. If you have any questions or are thinking of buying or selling in 2019, feel free to reach out to us. We look forward to seeing you in the new year!

Our team is so thankful for you this holiday season. We hope your season is as merry and bright as ours. Happy Holidays! In the spirit of the season, our team would like to extend our warmest thanks to all of you for the amazing year we’ve had. Your continued support means so much to us. The success we achieved in 2018 wouldn’t have been possible without you. We look forward to continuing to serve our community, and are excited to work with you all in the new year to come. Merry Christmas, Happy Holidays, and Happy New Years! 

Today I want to talk about six home safety tips to employ if you want to keep your home safe from burglars. There are six things that house burglars don’t want you to know: 1. Nighttime burglaries aren’t common. Burglars prefer to do it during the day when they will usually find the home’s occupants out of the house. Many of these crimes take place between 12:30 p.m. and 2:30 p.m. 2. They know you’re not home. When it comes to social media, don’t post where you are at all times; a lot of burglars watch social media and track your movements so they can strike when they know you’re not home. Wait until you get home to update all of your friends and family about your vacations, trips, etc. 3. They don’t like your security practices. A home with an alarm or some type of dog is less likely to get burglarized than homes without. In fact, an alarm makes a burglary 300 times less likely; burglars want an easy target. 4. It’s not helpful to advertise that you have guns. Besides the fact that the burglar will then know to expect such a thing, it might also further incentivize them to rob your home, since guns sell well on the secondary market. “Many burglaries take place between 12:30 p.m. and 2:30 p.m.” 5. Your shrubs and architectural items make it easier for burglars to hide. Make sure you trim your shrubs and that you don’t have large objects obscuring your windows, or else burglars will exploit this to hide and get closer to your home. 6. They look for valuables left in open spaces.  Don’t leave your valuables out in the open, especially in places where they can be seen from windows, including technology like computers and laptops. This makes for easy targets. If you have any other questions about home safety tips or real estate in general, don’t hesitate to reach out to me. I’d be glad to be of service to you.

Are you making any of these 10 common but costly homeownership mistakes? If so, we’ll explain how you can mitigate them. In real estate, people often talk about how much it costs to buy a home, but what about the cost associated with simply living in a home? As most homeowners already realize, owning a property can be an expensive ordeal.  Today, we’ll cover 10 expensive homeownership mistakes. For each point, we’ll also discuss a money-saving alternative. Let’s dive right in: 1. Using incandescent light bulbs. These bulbs can cost about $180 per year. Using LED bulbs instead will cost you 87% less, making these bulbs the far more cost-effective option.  2. Ignoring leaky faucets. A leaky faucet can waste up to 3,000 gallons of water in a year, racking up a hefty water bill all the while. Fixing leaks as soon as you notice them is essential.  3. Using dirty or incorrectly sized filters. To keep your heating and air conditioning units working smoothly, you will need to regularly replace filters—making sure that, when you do, you use the correct size.  4. Excessively adjusting your thermostat. Programmable thermostats can save you a lot of money.  5. Not adjusting your vents. There’s no sense in leaving vents open to empty rooms. You should only heat and cool the areas you actually plan to be in.  6. Overwatering your lawn. If you have a sprinkler or irrigation system, you need to make sure it’s working properly.  7. Setting a water heater’s temperature too high. Adjusting the temperature of your hot water heater according to the season can save you a lot of money on your utility bill.  8. Ignoring leaky windows. If you feel any air coming into your home on windy days, it may be time to recaulk around your windows to ensure that they’re properly sealed and are not leaking air. “In the age of the internet, almost anyone can tackle most minor repairs without the help of a professional.” 9. Paying a handyman to take care of small projects. In the age of the internet, almost anyone can tackle most minor repairs without the help of a professional.  10. Neglecting your roof. If you have any curling or cracked shingles, your roof may leak and cause costly damage. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

You’ve probably been hearing a lot about the future of our market in the news lately, and today, we’re going to get to the bottom of what may lie ahead by reviewing some projections, as well as some recent market trends. On a national level, average home prices have appreciated 5.5% since this time last year. Locally, however, appreciation levels haven’t been quite so high, with average Pennsylvania home prices seeing an increase of just 3.6% year over year. Of course, these numbers only reflect the statistical average on a broad scale. Real estate trends vary between different counties, and even between different neighborhoods. Also, according to findings by CoreLogic, August 2018 had the slowest appreciation rate in nearly two years. This may be part of why we’ve seen affordability issues lately. Buyers and sellers alike have been hesitant to enter our market as a result of recent trends, with buyers holding out for greater affordability and sellers waiting for greater appreciation. “Real estate trends vary between different countries, and even between different neighborhoods.” Everything in our market is connected. As such, everything we’ve mentioned so far has also had an impact on supply. We’re still currently experiencing low inventory, and with mortgage rates beginning to climb, this trend is likely to continue. Now at approximately 5%, the current average interest rate for 30-year fixed mortgages is higher than we’ve seen in the past eight years. With all this in mind, you may be wondering what we can expect from the coming year. In terms of appreciation, forecasts predict that we’ll see an average national growth of 4.7% and an average growth in Pennsylvania of 5.5% between August of this year and August 2019. As we’ve already mentioned, interest rates will continue to rise as we move into next year. The bottom line is this: Buyers and sellers alike should make their move as soon as possible. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What’s going on with mortgage rates in our market? Right now, the average 30-year fixed rate is about 4.77%, which is the highest it’s been in the past seven years. Experts predict that it will continue to creep closer toward 5%, but it’s still at a historically low level. Is this really affecting our market? Not right now. I think what’s actually affecting the market is the dramatic price increases we’ve seen the past two years. Home prices are significantly higher now than they were when the market crashed in 2008. Additionally, inventory levels are still really low. “It’s still a good time to buy and take advantage of these historically low rates.” Low inventory, price increases, and rising mortgage rates have produced a little bit of a slowdown, but our market’s still extremely good right now. We’re heading into a time of year where more homes are expected to come onto the market, so it’s still a good time to buy and take advantage of these historically low rates. If you have any more questions about our current market or you’re thinking of buying or selling a home, don’t hesitate to get in touch with us. My team and I would love to help you.

If you’ve put your home on the market and it is not selling, there are a couple of key factors you need to examine and steps you need to take to rectify the situation. The first factor you need to look at is timing. What is the average days on market for listed homes in your area right now and where does your home fall within that average? This can vary depending on what price point your home’s in. The second factor is how your home compares to other homes on the market and what kind of activity they’re getting. Your real estate agent can help you with this by pulling some numbers from the MLS. “Remember to discuss these points with your real estate agent.” After that, you need to determine whether your home is priced appropriately based on those factors. If your home has spent more than a month on the market but it’s still getting decent showing activity, be patient and see what happens. If it’s not getting decent showing activity, look at how your home compares to other similar homes on the market in terms of showings and online views. A lack of showings could mean one of two things—either there aren’t a lot of buyers in your price point and the market’s slow in general, or buyers are eliminating your home from consideration in favor of other comparable homes. If it is the latter case, it is usually because of price. This is why, when putting your home on the market, you never want to overprice it. This can cause it to sit on the market, become stale, and prevent you from getting market value for it. Remember to discuss these points with your real estate agent. If you need help selling your home or you have any other real estate questions for me, please feel free to call or email me anytime. My team and I would love to help you.

Should you buy or sell first? This is a common question asked by sellers when they have to sell their home and also purchase a new one. The first thing you will want to do is look at your finances and get pre-qualified. You need to talk to a lender who can tell you whether you qualify for one of the following three options: You can buy first and then sell, sell first and then buy, or simultaneously buy and sell. Each one has its advantages and disadvantages. If you qualify to buy a new home before you sell your current home, you should know that after you purchase your new home, you will have to carry two mortgages. You need to make sure that you feel comfortable doing this. Also, you will now know exactly how much equity you are going to get out of your current home. Meanwhile, an advantage of selling first is that you do not have to worry about a home sale contingency. This puts you in a much stronger negotiating position as a buyer because it gives the seller one less contingency to worry about. “The most common option is to buy and sell simultaneously by putting your home on the market at the same time you are looking.” If you decide to sell first and then buy, this obviously puts you in a great position because you know exactly how much equity you are getting from your home. This can give you stronger negotiating power when buying because you are already going to have the cash in your pocket. However, you will have to make arrangements for short-term living. This may mean that you will have to stay with friends or relatives, or even get a short-term rental in the meantime. The most common route that sellers take is to buy and sell simultaneously. Once you find a home and it goes under contract, you then have what is called a home settlement contingency. This means that the home you are buying is contingent upon the settlement of your current home. In this case, you will know exactly how much equity you will get out of your current home as well as the closing costs and what money they are carrying forward. However, it can be a very stressful day when you are trying to settle your current home in the morning and then settle on your new property in the afternoon. A recommendation I make for that is that you wait a day in between selling and buying and stay in a hotel or a friend’s house overnight and keep everything in a moving truck overnight. If you have any additional questions about this or are interested in buying or selling, please feel free to reach out to me by phone or email. I look forward to speaking with you soon.

There’s a lot of conflicting information out there about open houses. Specifically, people often debate whether or not they’re effective. Well, statistically speaking, open houses do not generally work. But this may be partially due to the fact that most agents don’t know how to properly host one. If you do want to hold an open house, there are a few things you must do to make them as effective as possible. Open houses are an easy, non-formal way of bringing buyers in to look at your home. But this arrangement also presents the concern of security issues. To reduce the risk of security problems, it’s a good idea to have all potential buyers coming through the door fill out a sign-in sheet. This will let you know who was in your home and at what time they were there. “The more signs you have up, the more traffic your open house is likely to see.” Another way to host an open house more effectively is to prepare. Make sure you’ve advertised the event properly. This can be done by putting up signs throughout the week and putting up even more signs the day of the open house. The more signs you have up, the more traffic your open house is likely to see. And more traffic means more potential buyers. Also, don’t hesitate to let the neighbors know you’re selling. Even if they aren’t looking themselves, they may know someone who is. Whether you’re planning on hosting an open house on your own or with the help of an agent, these tips will be crucial to making the most of the event. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What are the differences between individual agents and teams? Today I am going to tell you about the advantages and disadvantages of both. Most agents work individually. They work for a brokerage and run their business by themselves. The brokerage provides support for paperwork, answering phones, making appointments, and more. Teams, however, normally have an admin or two who focuses on those kinds of tasks. When you hire an agent from a team, you are hiring that entire group or professionals. Also, you will pay the same commission regardless of whether you are hiring a team or an individual agent. “The advantage of a team is that they have people hired specifically to make appointments and do paperwork, allowing agents time to do their specific roles.” With only so many hours in the day, an individual agent may have trouble providing enough attention where needed. They may also lack the necessary expertise on all various subjects within the transaction for it to go smoothly. Working with an individual agent will most likely afford you more one-on-one time, but it will also cause you to lose out on the level of service a team could provide. You wouldn’t expect to see a doctor or a lawyer answering their own phones and scheduling appointments. You would expect that to fall under the responsibilities of other professionals on their team. This is also true in real estate, where everyone has a specific role to play. While you can see that there are a lot of advantages to hiring a real estate team as opposed to an individual, the decision is still yours. If you think that a team setting is what you are looking for and would like to speak with me about my team buying or selling your home, please feel free to call or email. I look forward to speaking with you soon.

Home prices are rising and we’re in a strong seller’s market all across the country. There are signs that we’re in for a bit of a slowdown, though. Over the last six years, home prices have risen. In the last two years, they’ve risen significantly. With that, mortgage rates are starting to rise right alongside them. Right now, the average 30-year fixed rate mortgage is up almost a full percentage point compared to where it was in September 2017. This has put a lot of pressure on the market, and we’re starting to see a lot of first-time homebuyers back out of the market due to both low inventory and low affordability levels. “If you’re thinking of putting your home on the market, now’s the time to do it.” What’s driving prices right now isn’t the same cause that was driving them during our last real estate boom. During our last boom, the rise in prices was caused by easy money. What’s driving prices now is basic supply and demand—there are too many buyers and not enough houses. Compared to the last boom, this is a good thing. We’re seeing lower default rates on mortgages, which is indicative of a stronger, more sustainable market. The reason many economists are starting to take issue with this market and predict a coming slowdown, though, is wages aren’t keeping up with rising home prices. There’s a large gap between these two things, and that’s usually a warning sign of things to come. When this expected slowdown is going to happen is hard to say, but these experts are in agreement that it will occur in the near future. This means if you’re thinking of putting your home on the market, now’s the time to do it—before things start to take a turn. If you want to get started on selling your home, you’re thinking of buying a home, or you have any other real estate questions, don’t hesitate to reach out to me. My team and I would be happy to help you.

Even though temperatures aren’t quite cooperating, our spring market is in full swing. We’ve all been hearing on the news lately how great the market has been so far this year. You’ve probably also heard about the extreme shortage in inventory we’re seeing. Well, this is still definitely the case. There are too few houses right now to match the number of available buyers, and prices are being driven up as a result. At the same time, the level of activity in our market is being driven down. Of course, different locations will see different trends reflected within their own markets. So if you want to learn more about what’s going on in your area, specifically, I’d be happy to meet with you for a no-cost consultation. “There are too few houses right now to match the number of available buyers, and prices are being driven up as a result.” But let’s look at the big picture for now. There’s currently 30% less inventory than there was at this time last year in our market. And while rising prices are having a big impact, so are rising mortgage rates. Experts predict we’ll actually see rates go as high as 5% by the end of 2018. With all these conditions at play, many of today’s buyers are making their moves as soon as possible. But first-time homebuyers are facing some difficulties, as lower price ranges are seeing significant appreciation. Homes in the range between $200,000 and $350,000 have appreciated by an average of 9% in the last 12 months. Thankfully, inventory levels are likely to rise a bit over the course of our spring market. They may not go up as much as we’d like, but hopefully this upward trend can make it easier for the buyers out there. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today, I’ll be going over eight things that can make your home appear messy, as well as what you can do to fix them. Simple cleaning projects will make a big difference, especially if you’re going to list your home. 1. Cluttered shelving. Make sure the shelving in your home is clean and free of clutter. 2. Tangled wires and cords. Cleaning up tangled cords can be as simple as using a wire tie. This will be especially important around computers and home entertainment systems. 3. Too much wallpaper. If you’ve got a lot of patterned wallpaper in your home, you’ll want to get rid of it. Your walls should look fresh and neutral. “Simple cleaning projects will make a big difference, especially if you’re going to list your home.” 4. Sloppy entryways. If you’re putting your home on the market, a tidy entryway will be critical. This space provides the first impression of your home for buyers and guests alike, so make sure it’s clean and well-maintained. 5. Unmade beds. Making the beds, and perhaps even adding some decorative pillows, is a small task that can really make a difference in the way a bedroom looks. 6. Cluttered floors. There shouldn’t be anything left out on the floors of your home if you want it to look clean. Make sure everything is picked up for a tidier appearance. 7. Dirty laundry. Your home will look much messier if you’ve got laundry sitting out, so make sure everything is washed and put away. 8. Crowded countertops. This is especially problematic in kitchens. If you’re trying to show off counter space, make sure the surfaces are clean and free of clutter. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today I want to give you some insider tips on what you should demand of your real estate agent. These tips can save you tens of thousands when buying or selling a home, so it’s something you’re going to want to pay attention to. 1. Make sure your agent is truthful about the price of your home. Having an agent come in and give you a price just because they want to get the listing or just because it’s what you want to hear will not be beneficial in the long run. Many studies have shown over many years that when you overprice a property, it can quickly become stale. The longer it sits on the market, the less likely you are to get a good price. Being truthful about your home’s value is an invaluable quality for an agent to have. 2. Make sure you know what their list-to-sale price ratio is. The higher the number, the more likely you are to get a good price. Our market’s average is around 94% right now, but our team is hovering at 98%. That’s extra money for our sellers and a quicker home sale, too. “Don’t hire an agent without making these demands.” 3. Know what their home searching strategies are. Other than an automated search in the MLS, you wanna make sure your agent is active and out in the market looking for homes for you. You don’t want an agent who will haul you around and hope you buy a home. You want an agent who is looking for the exact type of home you want via circle prospecting, door knocking, and even cold calling. We’ll be able to tell you about homes before they hit the market. 4. Alleviate as many roadblocks as possible. We refer to this in our business as the “88 types of turbulence.” We have found 88 different roadblocks that most commonly derail transactions. We make our buyers aware of these to make the process less stressful. 5. You need a full-time agent. Another big question you should be asking right off the bat is, “Are you a full-time or part-time agent?” Anybody can be a part-time agent. You want a full-time agent working for you. An agent that sells a lot more than the four or five home average. These are just a few demands you should be making of your real estate agent. If you want to learn more or if you have any questions, give me a call or send me an email. I look forward to hearing from you.

How will the new tax laws impact homeownership in 2018? There have been some significant changes to the tax reform bill since it was originally proposed. For this reason, we highly recommend you speak with your accountant about how you may be personally affected. On a wider scale, though, there are some things we should all be aware of. “We highly recommend you speak with your accountant about how you may be personally affected.” The No. 1 rule change people have been talking about is the one pertaining to interest deduction. Now, interest deduction will be capped at $750,000. So if you’re purchasing a home in 2018, keep in mind that you won’t be able to deduct interest on any property priced above that cap. If you are buying a second home, then the $750,000 cap pertains to the combined value of the two homes. Another important change is that you can now no longer deduct interest corresponding to finances such as tuition. Moving expenses are also no longer deductible. However, you can still reduce moving costs if you are an active duty military member. Also, deductions from real estate taxes are now capped at $10,000. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Did you know that there are five things you can do to reduce your energy costs this winter? We’ve seen some record-low temperatures these past couple of weeks, and these tips can help you save money on your bills for the rest of the season. 1. Reverse the direction of your ceiling fans.This will draw the cool air upwards and push the hot air down. Make sure that the fan is on a low speed, not high speed. 2. Check your doors for drafts. If you feel air coming through, especially on a windy day, get a door sweep to block that air flow. Also be sure to check your weather stripping. “These tips can help you save money on your bills for the rest of the season.” 3. Make sure that your air filters are clean to help hot air flow. If the filter is blocked, it will reduce the amount of warm air that reaches each room and increase the amount of energy it will take to heat your house. 4. Insulate your outlets. This will require an electricians help, but you can remove the covers on your outlets, install insulators, and then put the cover back on. This is another area where cool air from the outdoors can seep in. 5. Check your ductwork and insulation. You can purchase special tape and sealants at most hardware stores that you can use to cover voids in your ducts to promote flow so that warm air isn’t just leaking into your basement. Try to stay warm this winter! If you have any questions about this or other topics, feel free to reach out to us. We’ll help you any way we can.

Today I’m going to give you a market update of where we’ve been in 2017 and where we’re headed in 2018. As we all know, the real estate market and the financial market have been doing very well over the past 12 months. The numbers continue to back this up. In Bucks County alone, we’ve seen a 5% increase in median home prices in the last year. When it comes to inventory, we’ve seen a 15% drop in the past year. This is what’s driving prices up. More homes sold and fewer homes on the market equals rising prices. “Right now is a great time to sell.” In Montgomery County, we’ve also seen about a 4.5% median increase in sale prices over the past year. If you’d like to get any more specific market data on your neighborhood, your township, or your school district, we’d be happy to provide you with those. Just give us a call or send us an email. A lot of people also ask me around this time of year if it’s a good idea to sell their home. Right now, I’d say yes. There are not many homes on the market right now, but low interest rates are still driving buyers in the market. I think December is going to be a great month for us in the end. If you’re thinking about moving, getting your home on the market now will allow you to beat the rush of sellers that will list when the spring hits. If you have any other questions for me or need any real estate advice, don’t hesitate to give me a call or send me an email. I would love to hear from you.

Today, I just want to take a moment to wish you a happy holiday season. Thank you for the tremendous success we’ve had in 2017. It was a record-breaking year here at The Scott Irvin Team, and we couldn’t have done it without you. We look forward to seeing you in 2018, and wish you a safe, healthy, and happy New Year. For my full holiday message, watch this short video.

The moving process can be very stressful. Thankfully, you can simplify it using these four tips. 1. Get ready now. Whether you’re moving in six months or six years, get started as soon as possible. Taking some time to prepare will mean you aren’t stressing out about getting things done at the last minute. The first thing you’re going to want to do is organize things into four piles: the keep pile, the giveaway pile, the maybe pile, and the trash pile. If you aren’t moving for at least a year, put the maybe pile into boxes and then put them away. If you don’t touch the boxes for 12 months, it’s probably safe to donate or get rid of the items. “Don’t make things stressful for yourself right before your moving date by putting off these tasks.” 2. Try to be patient while you go through everything. There are a lot of things you’re going to be looking through. Photos, documents, and more will all need to be sorted. Make sure you give yourself adequate time to do so. Once things are sorted, it helps to put them into clear plastic bags or into marked boxes. 3. Get rid of old magazines and documents. A lot of people keep too much paper. These things have likely been sitting around for too long, so it may be time to see what can be let go of. Shred things you don’t keep, and organize the rest. 4. Do it now. This is best and most valuable of all these tips. Don’t make things stressful for yourself right before your moving date by putting off these tasks. Take care of important tasks now, instead of later. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

In a real estate transaction there are many types of agency, but today we’re going to focus on buyer agency. When you first meet with a real estate agent, you will be provided with a consumer notice. This consumer notice will help explain the different agencies in Pennsylvania. Next, the agent will go over any questions you may have and will eventually ask you to sign a buyer agency contract. But before you sign this contract, make sure you are comfortable with the agent. This contract does bind you to working with them, so it’s important you feel secure moving forward with your decision. Also, pay attention to the length of time the contract commits you for. The amount of time you’re locked in for could be fairly short, but it can also be a maximum of one year. Never rush into a contract you aren’t comfortable with. “Never rush into a contract you aren’t comfortable with.” You may want to think about interviewing multiple agents before committing to a specific professional. If you do work with an agent before signing a contract, it’s important to realize they are then working for the seller. Without any agency established on your behalf, you aren’t being represented. My team and I understand what an important decision this is. For this reason, we provide a loyalty agreement with a cancellation guarantee when you work with us. We do this so that you don’t feel pressured into signing any long-term contracts. We hope to perform to a standard that you’re happy with but if this isn’t the case for any reason, it’s important to us that you have peace of mind in knowing you can cancel anytime. If you have any other questions or would like more information feel free to give me a call or send me an email. I look forward to hearing from you soon.

When selling your home, it is very important that you price it properly. The success of many other facets of your home sale boils down to whether you price your home properly or not. Studies show time and time again that if you overprice your property, you’ll likely sell it for below its market value. “Overpricing your home will cause it to sit on the market longer.” Overpricing your home will cause it to sit on the market longer, which will force you to go through several different price reductions. These price reductions will make the home look stale, and the longer your home stays on the market, the more apt buyers are to think there’s something wrong with it. Furthermore, they’ll assume they’ll be able to lowball you due to the perceived lack of interest in the home. This is why I advise all sellers to sit down with their agent and set an appropriate price for their home. Not doing so can cost you up to tens of thousands of dollars. If you have any questions, you’d like to know the market value of your home, or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to me. I’d love to help you.

A lot of homebuyers fail to realize that their home expenses don’t start and stop with their mortgage payment. There’s much more to being a homeowner than that. Here are five expenses that all homeowners have in addition to their mortgage: 1. Closing costs. When you decide on a home, you’ll get an estimate of the closing costs. The estimate will break down what you need to bring to closing and what the mortgage company is giving you. 2. Maintenance costs. This can vary depending on the home, but you should budget for at least 1% to 2% of the home’s value each year to be used on maintenance costs. “The average American spends $3,000 per year on utilities” 3. Utilities. The national average is nearly $3,000 per year. If you want to get a better idea of what the utilities will cost in the home you’re interested in, you can always ask your agent to get that information from the seller. 4. Taxes. These will be escrowed into your mortgage. 5. Homeowners insurance. The national average for homeowners insurance is around $1,100 per year. Check with your insurance agent regarding the coverage you have. I hope you find these tips useful. If you have any questions or would like any more tips, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

If you’ve sold your house, how can you have a stress-free move and be prepared on the day of the actual settlement? There are a few things you need to remember. First, you have to find the right moving company. When looking for a moving company, you want to make sure you protect yourself. You can follow one of your Realtor’s recommendations, but you also want to get more than one bid. When accepting bids, beware of any lowball offers. If a company tells you they can move your things for a lot less than the competition, it will usually end up costing you more if you hire them. “When looking for a moving company, make sure you protect yourself.” Also, make sure the company you’re considering hiring is licensed and insured. Go online and check for reviews of their service and see if there are any complaints against them. Once the movers are set in place, have a contingency plan in place. What happens that day if the truck doesn’t show up? If—for whatever reason—the movers can’t move that day, what will you do? If you follow these tips, your move should go smoothly. If you have any questions about finding the right moving company or the moving process in general, don’t hesitate to give me a call or shoot me an email. I’d be glad to help.

A recent study found that 4.5 million homeowners are still eligible to refinance their mortgage. With that amount of homeowners, they’ve estimated that about $1 billion in total savings have been left on the table that homeowners aren’t taking advantage of. Many homeowners are saying the reason they haven’t is that they’re not sure if the value of their home would support a refinance. This is certainly something to look into. The average homeowner does save about $260 a month when they refinance. “About $1 billion in total savings have been left on the table that homeowners aren’t taking advantage of.” In other words, seeing if you are eligible for refinancing is well worth thinking about. Mortgage rates are currently hovering around 4% or slightly less, and homes have been appreciating significantly in the past year or two in the market. So, what better time to find out whether you could be missing out on savings? We at Scott Irvin & Associates would be glad to help by giving you an analysis of your home to determine value. If you have any other questions or would like more information, feel free to give us a call or send an email. We look forward to hearing from you soon.

What is the difference between a pre-qualification letter and a pre-approval? As a buyer, which one is stronger? As a seller, which one will make you more comfortable about your home sale? If you get pre-qualified, the lender simply looks through your finances for things like your credit score, assets, income, and liabilities. Then, based on whatever information you tell the lender, they will give you a pre-qualification letter. A pre-approval is a lot strong stronger than pre-qualification. The lender will verify your financial information by looking through bank statements, W-2s, tax returns, and pay stubs. That way, when you submit your offer, the seller knows that there won’t be any financial roadblocks in the way of closing. “I strongly recommend getting pre-approved when buying in today’s market.” A pre-approval letter gives the seller one less thing to worry about. As a buyer, a pre-approval letter can set you apart from the competition in a multiple offer situation. Even if you are the only buyer submitting an offer, you are more likely to get the home. You may even be able to get a better price on the home. Ultimately, in today’s market, a pre-approval can be the difference between getting a house or not getting a house. So, when you talk to your lender, make sure that you get pre-approved, not pre-qualified. If you have any other questions or would like to get in touch with a lender, give us a call. We would be happy to help you!

As we head into the summer months and the third quarter, it’s a good time to look back and see how the market is doing so far this year, as well as look at what is driving the market now. Demand is incredibly strong right now, as is demonstrated by the low inventory in certain price points. Interest rates are still at historic lows, which is driving a lot of the buyer demand. Overall, inventory in our market is down 29% from this time last year. In the higher price points, those statistics changed. Demand is strongest for homes under $300,000. Inventory in this price point has dropped by 54% year over year. Multiple offer situations are incredibly common in this price point. “The market is very strong overall.” In the $300,000 to $600,000 price point, inventory has dropped 23% compared to this time last year. This market is still strong. When you look at the $600,000 to $900,000 price range, the market is not as strong as it is in those lower price points. Inventory dropped 14% year over year, but this is still a good market. We should start to see inventory creep up over the next few months, as buyers tend to slow down a bit in the summer. However, the market is still doing very well overall. If you have any more questions about our current market or would like to learn more details about your specific area, give me a call or send me an email. I would be happy to help you.

One of the questions I get asked quite often by sellers when giving their home a valuation is why their real estate taxes are different from their neighbor’s when their neighbor’s home is similar to theirs or is located in the same development. Your real estate taxes can affect the value of your home when you sell it because they’re added to the buyer’s monthly payment in purchasing the home. Your real estate taxes may differ from your neighbor’s because they’re determined by your home’s assessed value. In Bucks and Montgomery counties, they don’t do an assessment every year. Your neighbor, for example, could’ve appealed their real estate taxes two years ago and had them reduced. “Appealing your real estate taxes may save you money over time.” The deadline to appeal your real estate taxes is August 1st of every year. If you wish to do so, you can visit the Board of Assessment’s website where they’ll have forms available for you to fill out and notify you of what fee you have to pay. You can include comparable properties when submitting your appeal, but we usually recommend getting an appraisal done on your property. Getting a valuation from an independent third party may help get your taxes in line with your neighbor’s. If you have any questions about appealing your taxes or any other real estate topic, please feel free to give me a call or send us an email. We look forward to hearing from you.

The number one question I’m asked by home sellers is about the kind of taxes they’re going to have to pay to close their transaction. First off, I’m not an accountant, and you should consult with yours before you make any financial decisions. However, I do want to talk to you a little bit about capital gains taxes. Capital gains refers to the difference between the purchase price of a home and what you end up selling it for. Let’s say, for example, you purchased a $250,000 house and sold it for $500,000. The capital gains on that property would be $250,000. You can reduce your capital gains by keeping track of your cost basis, aka how much money you put into improving the home. Let’s say you put $50,000 of improvements into that same $250,000 home and end up selling it for $500,000. With a new cost basis of $300,000, the capital gains would only be $200,000. This is important because as an individual, you can become exempt for up to $250,000 in capital gains taxes. If the home is your primary residence and you’ve lived there for two of the last five years, you qualify. If you’re a married couple, you’re exempt for up to $500,000 in capital gains taxes. The only caveat is that you can’t have sold a home within the last two years and used the capital gains exemption. There are a few exceptions to that rule as well. “Consult your tax professional before making any decisions.” I know this topic can get a little confusing. If you have any additional questions, I advise you to seek out a tax professional. We’d be more than happy to connect you with one if you just want to give us a call. If you have any other real estate-related questions, we are always here to help. We look forward to hearing from you soon.

When you get a home inspection, your first step is to make sure you properly pick a home inspector by checking that they’re a member of the National Association of Certified Home Inspectors, or NACHI. They have standards for practice as well as a code of ethics that members must follow. Inspectors only have to be licensed in the state, so there’s no additional training they have to go through. Being a member of the NACHI makes a big difference in the way they carry themselves and conduct your inspection because of the standards of practice. Home inspections seek to find what we call ‘material defects,’ which means anything that adversely affects the value of a home. Home inspections don’t look for cosmetic flaws like stains in the carpet or cracked drywall, though. Material defects will occur with things like the mechanical systems, the roof, window, or electrical systems, among many others. These things can adversely affect the value of your home, which is why they want to address them. “Inspections will identify material defects and safety issues, not material defects.” We also recommend that you attend the home inspection. That way, you’ll understand what the inspector is going over at the end when you get the inspection report. They can even answer questions during or immediately after the inspection. The inspector also looks for safety items like fire hazards or electrical issues. Once you get the report, you want to review it to see if there’s anything you need to address as a buyer or seller. As a buyer, you can ask the seller to fix material defects or ask for a credit. All in all, we strongly recommend inspections because they can help you avoid a lot of issues down the road. If you have any questions about home inspections or you’re thinking about selling your Philadelphia home, give me a call or send me an email. I’d be glad to help!