Pennsylvania is #7 out of 10 in Most Expensive Closing Costs

The housing market may be slow but closing costs are still going up.  Is it surprising that PA is near the top in costs?  Ask your real estate professional for an estimate of closing costs early in the buying process so there are no suprises!

According to a survery by bankrate.com the 2007 average closing cost of $2,736 has gone up to an average of $3,118 in 2008, a 14 percent increase. New York City at $4,016 is the most expensive place to close. North Carolina is the least expensive area with an average fee of $2,650.

Here are the top 10 most expensive states to pay closing costs.

1. New York: $4,016
2. Texas: $3,975
3. Florida: $3,683
4. Oklahoma: $3,558
5. New Mexico: $3,465
6. New Jersey: $3,432
7. Pennsylvania: $3,411
8. Alaska: $3,409
9. Colorado: $3,358
10. California: $3,321

Source: Bankrate.com (08/07/08)
excerpted from Realtor.com

WSJ Economist Poll Results for Fannie Mae & Freddie Mac

Wall Street Journal Poll indicates many economists feel government is going to need to help Fannie Mae & Freddie mac to keep them afloat.  Follow the link for more -

http://www.inman.com/news/2008/08/15/poll-feds-likely-aid-fannie-freddie

Housing Bill Tax Credit A Big Plus for 1st Time Buyers

When all you hear is bad news on the housing market, it’s nice to hear a positive spin for a change.  According to this article, “Using history as a guide, Lawrence Yun, chief economist of the National Association of Realtors believes the Housing Act could represent a boost of 10% in the number of homes sold.”

http://rismedia.com/wp/2008-08-11/housing-bill-creates-great-environment-for-first-time-buyers-says-industry-leader/

Have we hit bottom?

Interesting summary of what various economists are looking at to determine whether the housing market has hit bottom in various parts of the country.  For the whole story: 

 http://www.nytimes.com/2008/08/09/business/economy/09bargain.html?ref=business

Should You Appeal Your Taxes?

With housing prices continuing to slide one question I’ve heard is “Should I appeal my taxes?  Your taxes are based on the assessment of your home and in Chester County all property owners have the right to appeal if they don’t agree with their assessment.   The process is relatively easy but you need to be well prepared.  There are annual deadlines when you can appeal and the revised rate only takes effect the year after.  For a comprehensive explanation of what, why and how? in Chester County, check out this link: 

http://dsf.chesco.org/chesco/cwp/view.asp?a=1413&q=573702

Ludwig’s Corner Horse Show & Country Fair

The 65th annual Ludwig’s Corner Horse Show and Country Fair  – August 30 – September 1, 2008 offers non-rated competition, large crowds and old fashioned country fair feel.  See you there!

More info here: http://www.ludwigshorseshow.org/

Find an Undervalued Asset. Fix It Up. Flip It. (Now It’s Web Sites, Not Houses)

By ABHA BHATTARAI

Dave Hermansen did not own a bird or a cage when he bought bird-cage.com, an online store, for $1,800 three years ago. He simply saw a Web site that was “very, very poorly done,” and begged the owners to sell it to him. He then redesigned the site, added advertising and drove up traffic. Last December, he sold it for $173,000.

Mr. Hermansen, 30, is among the latest wave of entrepreneurs who, like the day traders and real estate investors before them, are looking to make a lot of money without much effort.

They use little more than home computers and free software to buy Web sites that appeal to a small and specific niche. Then they fix up the sites with hopes of reselling them for far more than they paid.

But while their dreams are fueled by high-profile Internet deals — Condé Nast’s $25 million purchase of Wired News, People.com’s acquisition of Celebrity Baby Blog and, most recently, a deal this month between Guardian News and Media and the owner of PaidContent for a reported $30 million — these entrepreneurs have smaller ambitions for their sites. Many end up settling for just hundreds, sometimes thousands of dollars.

“Everyone with a site is saying, ‘If I can get it to the right value, I’m out,’ ” said Gene Alvarez, vice president for research at Gartner, a technology consulting firm. “I call it the burger-flipping model: You build up volume, you build a community and then you try to sell it while it’s still hot.”

 

 

Buying a 10+ Acre property and Act 319

If you are considering purchasing a property of over 10 acres, and no intention of subdividing it or developing it is worth taking a closer look at Act 319 and the future tax savings you could enjoy.  Act 319 of 1974 is commonly referred to as the Clean and Green Act.  The enrollment period is from March – June 1 each year so do your research early and decide if this is something that would benefit you.  As an agent in this area who deals with larger land parcels I’ve personally put one property in Act 319 and enjoyed the reduced tax benefits.  Should you sell the property at some later point to someone who has different use and goal who wants to take the property out of Act 319, that can be done through the payment of 7 years of rollback taxes.  Here are some general rules and a link to take you to the specifics on the Chester County program:

• 10 Acres minimum or $2,000 gross agricultural income.
• Only land assessment is affected.
• Land assessment is based on the agricultural use value of the land according to the productivity of the soil.
• Act 319 assessment remains on property in perpetuity or until a change in use occurs.
• Owner may include more than one deeded parcel under an application – parcels must be held in common ownership and must be contiguous.
• The entire tax parcel must be enrolled in the program. No exclusions of any portion from any tax parcel are permitted.

Link to Chester County program:         http://dsf.chesco.org/chesco/cwp/view.asp?a=1484&q=573695

Timing The Market?

Trying to time the market has always been a risky proposition in the stock market and is equally risky in the Real Estate Market.  Do you want to put your life on hold while you wait for the market to make the decision for you?  Personally if I were a Buyer or Seller today I’d worry less about the market conditions and more about my own personal needs.  Clearly this is a Buyers market.  There is a lot of inventory out there in all price points high and low.  So if you are in the market for a house then it is a great time to buy.  If you are a potential Seller, ask yourself these questions:  Do I have a compelling reason to sell? (i.e. job relocation, change of schools, growing family, etc.) and if so take the plunge.  Find an agent you are comfortable with, price your property correctly so it is attractive to Buyers and won’t languish on the market and get ready to move forward with your life!

 

Links:

http://rismedia.com/wp/2008-08-04/has-the-market-bottomed-out/

http://homebuying.about.com/od/marketfactstrends/qt/080307-timemrkt.htm

http://www.bankrate.com/brm/news/realestateguide2008/first-time-home-buyers-a1.asp

Philly Folk Fest

August 15/16/17

More Info here: http://www.pfs.org/