Berks County Real Estate Blog

Frigid temperatures put the deep freeze on Berks Real Estate

2011-02-10T13:53:00.000-08:00

If you think real estate was slow this week because of weather, you would be right. Starting out on Sunday with the Super Bowl, most clients were having parties; not open houses. Agents were inwardly relieved because they wanted to watch the game too. But sinking temperatures took their toll. Icy roads get showings cancelled, and new appointments are not made. It’s dead of winter folks, and Mother Nature doesn’t care if we have settlements scheduled, buyers anxious to see that perfect house, and sellers hoping for scheduled showings to take place – it snows anyway and the roads ice over despite our fervent prayers for sun and clear skies. Mid February – the bane of my existence. This weekend, though, we expect 50 degrees and melting snow, so take heart real estate lovers in Berks County. Better weather, more showings, more open houses and more sales are coming.

When picking a lender, listen to your Agent

2011-02-02T10:48:00.000-08:00

As if our industry isn't challenged enough right now, agents are dealing with the most stringent banking requirements in a very long time. This is good on the one hand, because we needed the mortgage business to discipline itself, but getting a loan approved, getting all the conditions removed, and getting everyone to the settlement table on time has become a herculean task. For some reason, some lenders do not think the dates on an Agreement of Sale matter. Sellers can terminate the agreement of sale if the lender does not meet the mortgage commitment date, yet some lenders scoff at the fact that this is of any importance. Agents, having grown the broadest shoulders and thickest skins over the last several years, have learned to deal with that, but when lenders don't make the settlement date, the gloves come off. REALTORS know which lenders understand the multitude of mortgage programs available to buyers today, and they know which lenders make settlement dates, keep clients informed, and don't issue pre-qualification letters that have no weight behind them. So, if your agent recommends a lender to you, there is nothing in that recommendation for the agent in most cases other than CONFIDENCE that the lender can get the job done. Isn't that what you really want - to actually be sitting at the settlement table, documents signed, funding available, and keys in your hand for the home of your dreams? Surely that interest rate you found on the internet or that out of the area lender nobody knows who promises you he can "fix" everything is not worth ending up with "no deal" when your moving van is packed!

Why are all those REALTORS smiling?

2010-08-05T07:53:00.001-07:00

I need to make a public amends for neglecting my Blog for several months, but I’m back and ready to start in again keeping you all up to date on what is happening in and around the Berks County real estate market. Ok, now that I got that off my chest, I can smile too!

So, how is the market right now? A lot better. CENTURY 21 Advance Realty’s data shows our listings sold and sales are up 22% over this time last year, and almost triple what they were in 2008. That has to make you smile; sure makes us smile!

Are all niches of the industry “up”? Almost. Sure, the tax credit first-time home buyers are gone, but the first-time home buyers are not. Savvy buyers know that interest rates are under 5%, properties are at extremely attractive prices, there is still a selection to choose from, and sellers, equally well informed, are realistic about their home’s value in this correcting market. There are a great many bank repossessed properties for sale, and buyers willing to take on the “as is” bank repo can make a great buy Builders are starting to stick a toe (or should I say steel-tipped boot) back in the water again, and we are seeing developments back in the planning stages and spec homes being constructed. Anything “green” is hot, but overpriced properties are not. The high-end market has activity, and the suburbs are coming alive. That gives us lots to smile about.

The weather may be hot, but the agents are out there, showing properties. You’ll recognize them by the smiles on their faces!

ANNA SAYS ACT-BUY IN BERKS COUNTY NOW

2010-02-04T07:35:00.000-08:00

My friend, Anna Christy, is an experienced loan officer with Fulton Mortgage Company, and she recently shared some news with me about changes in FHA financing. I thought you all could benefit from this information, so here it is - direct from Anna:

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase 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.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds 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.

There is only one way to avoid being affected by all of these costly changes that lie ahead – submit all FHA mortgage applications by the last week of March.

610-960-7482 or 717-336-8040
achristy@fultonmortgagecompany.com

I left Anna's contact information on this blog, because she said I could, and because she is certainly a trusted mortgage consultant that I recommend to my own clients.

All the information we are getting reinforces the position of the Berks County real estate community that now is the time to buy. It won't get any easier in the Spring, so waiting for the "Spring Market" is not the prudent decision this year.

BETTER BUY IN BERKS COUNTY NOW!

2010-01-22T14:04:00.000-08:00

There are a lot of reasons to buy a home in Berks County right now. Here are a few ideas to think about:

If you are a first-time home buyer, you have to be under contract by 4/30/10 and to the settlement table by 6/30/10. That’s $8,000 folks, so why not take advantage of that?

If you are a current home owner, you have that delicious little $6,500 treat waiting for you as a tax credit . Same rules; same reasons.

FHA is changing its guidelines in the spring, at least that is what we hear now. Instead of a 6% seller assist, you might only be able to get 3%. That’s a lot of money. Why wait?

There is still a lot of inventory available at great prices. Why wait?

There are still unbelievable 30 year, fixed-rate, low interest rates available. Why wait?

Prices might not go lower, and (from my computer to God’s ear) they might even start to go back up in some areas. Why wait?

Owning your own home can change things. Lots of costs become tax deductions. Talk to your accountant; you might just get the nudge you need to start looking.

Berks County, PA is a great place to Buy. Better Buy Now. Why wait?

New Agents in Berks County Worth a Try

2009-12-22T08:25:00.000-08:00

I heard a startling statistic several weeks ago. Of the thousands of agents who belong to a huge multiple listing service, 50% of them had 1 or less real estate transactions for the year in 2009.

That is pretty disconcerting for consumers – how do they know the agent they choose is any good? Has any experience? Will be around by the time their transaction goes to settlement? Valid concerns all.

What I want to address today, though, is brand new agents coming into this market with no experience at all. New agents are great for consumers – if they have the proper backing from their company and the proper support from experienced administrators within the company.

When you work with a new agent you get the benefit of that person having the newest ideas in education and marketing, the best grasp on technology and how it can benefit the consumer, and unbridled enthusiasm. Furthermore, new agents have the time to devote to you to give you the service you need in this market place.

We love when new agents join our company, whether experienced or brand new, because of the energy they bring, the ideas they have, and the depth they add to our current staff because of what they might have done professionally or as volunteers in the civic environment prior to their involvement in the real estate industry.

Give new agents a chance! If you have any concerns, ask them to team up with an experienced professional in their company, but don’t dismiss them. It could be the beginning of the best professional relationship you ever have

SENIORS - ARE YOU READY FOR A LIFESTYLE CHANGE?

2009-11-12T12:04:00.000-08:00

I had the pleasure today of listening to Lisa Tiger, REALTOR, and Master’s Level award winning agent with CENTURY 21 Advance Realty, give a presentation to members of the Senior community in Berks County, PA., relative to the right time to consider a lifestyle change.

Ms. Tiger, who gave her presentation as part of an event at The Highlands in Wyomissing, PA., addressed the concerns of the Senior community when considering selling the family home and moving forward in their lives. Some of those concerns were the fear of losing money when they sell, leaving the home where their children grew up, having nowhere to go after their home is sold, the process of sorting through their personal belongs, the fear of losing their independence, and how to begin the process.

The choices available to this demographic are active adult communities, assisted living, smaller, one-story homes, condominiums, apartments, or moving in with a family member. Ms. Tiger stressed the localized Berks County market and its stable economic analysis (the number of homes sold in Berks County in the 2nd quarter of 2009 is actually up 3.5%, the prices are up 2.9% and homes generally sell at 95.8% of list price as per Trend). Ms. Tiger recommended Seniors first consult their family members to discuss their decision, then get expert advice from their attorney, financial planner, accountant, and, of course, their REALTOR.

My personal opinion is the worst mistake a Senior can make is waiting too long to make that decision to take that next step in a lifestyle change. Each stage holds a certain charm and relevance, so why linger too longer in the stage that has passed?

If you are a Senior, and you are Ready, begin the process. Get the information, weigh your options, consult the professionals and Begin. Lifestyle changes are not endings but new Beginnings!

MAKE SURE YOUR $8,000 TAX CREDIT PURCHASE IS A TREAT!

2009-10-22T16:49:00.000-07:00

As the deadline approaches (at least for now) on the $8,000 first-time home buyer tax credit, home buyers in Berks County need to be aware of a few suggestions.

1. If you haven’t found a house yet, you better do it. Take the advice of your REALTOR if he or she tells you the home you like can’t settle by the 11/30/09 deadline. They are not out to “trick” you. If your agent has a buyer agency contract with you, they are working for you and want to help you.

2. Forget about buying a short sale, HUD home or bank-repo property. Delays are common, and you can’t take that chance. According to Tom Bitler, an agent with Century 21 Advance Realty and a bank repossession specialist, a bank repossession would be a bad choice. “A lot of these properties have delays with documents being ready for settlement. If you are buying a home for the purpose of getting the tax credit, buying a bank repo would not be a good course of action”, Bitler said.

3. Work with a local lender. Get your loan officer the information asked of you by the deadline the lender sets. If your loan package isn’t ready, you won’t make the settlement deadline.

4. Don’t schedule your settlement for November 30th (or the 28th or 29th for that matter). If you hit any snags, encounter any delays, or the mortgage company underwriter asks for any additional documentation, you might not settle until sometime in December. Patty Hoffman, a title officer from Spectrum Settlement Agency, said, “based on my years of experience doing closings, it is better to schedule a settlement a few days in advance of a deadline like the tax credit. If you schedule for the 30th and you need the tax credit, you are playing with fire”.

This is the “trick or treat” season, and the tax credit is a wonderful “treat”, so don’t be “tricked” by not heeding the cautions in this blog. Get your new home, settle on time, get the tax credit – what a treat that will be!

GIRLS LIKE GUYS WHO OWN HOUSES!

2009-10-15T10:05:00.001-07:00

Is there a generation of men out there afraid to commit? In this case we are talking about committing to the purchase of a home!

One of my Generation Y agents, Jess Harding, who lives in the Exeter Township area but sells home in Berks County, gave me some interesting input into what women would like in a Gen Y male – a house! Apparently, younger women respect men who already own a home. Sounds pretty much like Boomers and Gen X women to me, but the conversation got really interesting when we began to discuss why Gen Y men don’t buy homes more frequently – fear of commitment. So all you Gen Y guys out there, better call your REALTOR and start shopping for a house! Jess says, “that is the best way for my generation to build wealth”. Pretty smart girl, that Jess.

On the other hand, the single women are a huge demographic in the home buying statistics. They have made the commitment and are ready to buy, and Jess has thrown out the challenge to the reluctant Gen Y males to start buying homes in Berks County before the savvy female buyers beat you to them.

WHO COMES TO OPEN HOUSES?

2009-10-09T11:23:00.000-07:00

Be prepared to have lots of company if you visit an open house held by a Century 21 office in the Berks County area during the month of October. October Open House Month is a national promotion, and our agents at Century 21 Advance Realty are hoping to meet lots of people from the Berks County communities at their listings.

So you thought open houses were just to “trap” buyers didn’t you? Open houses definitely give potential buyers a chance to see the inside of properties of interest, but they can do that now with Visual Tours and multi-photo exposure in Trend or any other multiple listing service.

People come to open houses to get a feel for a neighborhood, to get decorating ideas, to see if the agent hosting the open house would make a good listing agent, and sometimes even to see if that is the right house for them to buy. Agents get a lot of information to tell the sellers about how people at the open houses relate to their property. We recognize the hot spots that excite the guests at the open house, and it helps us show that property in the best possible light. REALTORS learn as much as they teach about homes in their inventory when properties are held open. Nosy neighbors are welcome to REALTORS and should be to sellers, because statistics show that buyers come from contact with people who live in close proximity to the listing. Picking your neighbors, so to speak!

Jim Fawcett, a REALTOR with our company, Century 21 Advance Realty, says “I like twilight open houses, because the homes look welcoming with the properties lit from within – especially during the fall. I always believed people would like to stop by on their way home from work rather than come out on the weekends”. We love this idea, so watch for twilights closer to Halloween.

A word of caution to potential buyers – don’t panic if the host agent mentions the Consumer Notice, the infamous “green form”. It’s not a contract, just a disclosure, and absolutely for the benefit of the buying public.

Which brings me to a great place to stop for this blog. Agency law is way too serious for a late Friday afternoon blog.

No More Money!

2009-10-01T13:42:00.000-07:00

Who knew my initial blog for BerksCountyRealEstate blog would be breaking news!

There is no more funding available for the Tax Credit Advance Loan Program. So you never heard of that? Well, buyers who could take advantage of the $8,000 first time home buyer credit had the opportunity to borrow up to $5,000 to use right at the settlement table. This was called the Tax Credit Advance Loan (TCA), and the consumers loved it. Maybe too much, since PHFA just advised us that there is no longer funding for this program.

Don’t lose heart, though, as the tax credit is still in place, and we hope Congress will extend it. If they do, PHFA (Pennsylvania Housing Finance Agency) might offer the loans again.

If you have a settlement coming, and you are expecting this loan, call your lender right away. As with anything involving the sale of real estate, go to the professional with whom you have been working, and get the correct information right from them. If you listen to rumors, not only will there be no money, there will be no sanity for you either!