Buyer Information

Wallingford Swarthmore Board Proposes 1.4% Tax Hike

May 10, 2011 by admin

During its most recent meeting, the school board backed a proposed 2011-2012 final budget, which contains a 1.4 percent tax increase, by a vote of 8-0. This vote reaffirms the plans to operate within the state mandated cap on spending. A final vote on the $65.8 million spending plan will take place in June.

The tax hike adheres to the Act 1 spending cap for the district which is a ceiling set by the state, using a formula tied to the rate of inflation. It also represents the lowest increase in recent memory and is part of steadily declining pattern of tax boosts in the district.

Superintendent Richard Noonan listed Wallingford-Swarthmore tax hikes dating back the previous five fiscal years.

2006 – 2007 8.0%

2007 – 2008 6.0%

2008 – 2009 5.8%

2009 – 2010 2.8%

2010 – 2011 2.9%

The district could have taken more than $1.9 million in exceptions to Act 1, but opted not to do so. Areas that qualify for these waivers include retirement contributions and special education expenses.

Board member Michael Rinaldi also said it was a “real accomplishment” for Wallingford-Swarthmore to stay below the index considering many other districts are struggling to do so.

In March, Noonan discussed how a reduction in state funding would impact the district. He cited those cuts again, pointing out the cuts would include a roughly $240,000 drop in the Basic Education Subsidy; about $200,000 less in Accountability Block Grant funds; and a reduction of nearly $200,000 in Social Security reimbursements for workers hired after July 1, 1994.

In addition, the spending plan would eliminate partial reimbursements for students who live in the district but attend charter schools. That would equate to a decrease of about $46,000.

One way the district plans to cope with the cuts will be to end an extended-day kindergarten program, which sought to target special-needs students at an early age, since it was paid for with Accountability Block Grant funds.

Many Home Buyers Lack Basic Mortgage Knowledge

May 5, 2011 by admin

In a recent a recent Zillow Mortgage survey a staggering number of home buyers demonstrated the lack of basic knowledge concerning home mortgages. When queried regarding mortgage basics, nearly half of the survey participants – 46 percent – did not know the correct answers about mortgage fundamentals. In fact, 44 percent admitted they are not confident in their knowledge of mortgages or the mortgage process.

57 percent of prospective home buyers who were polled do not understand how adjustable rate mortgages (ARMs) work. When asked if interest rates on 5/1 ARMs always reset higher after five years, the majority of home buyers answered yes. In fact, the interest rate will adjust to the prevailing rate after five years, even if rates have declined. Currently, many borrowers whose ARMs have recently reset have lower interest rates than they did when they took out the loan.

34 percent of the respondents who are prospective home buyers do not understand that lender fees are negotiable and that they vary by lender. They believe lenders are required by law to charge the same fees for credit reports and appraisals, when in fact home buyers can save money by shopping for the lowest fees.

Additional Survey Findings

• 45 percent of polled prospective home buyers believe that they should always buy mortgage discount points when obtaining a mortgage. However, because mortgage discount points are simply prepaid interest, the decision should depend on how long you intend to own the home. In some cases, you may not plan to remain in the house for long enough to break even after buying points.

• 55 percent of prospective home buyers in the study do not understand that mortgage rates vary throughout the day. In reality, mortgage rates can change rapidly, similar to how stock prices can change throughout the day. To get the optimum rate, it is important to monitor rates closely.

• 37 percent of prospective home buyers who were polled believe that pre-qualifying for a loan means they have secured financing. In fact, “pre-qualification” is used to describe the earliest step in the process when a lender approximates how much you can afford, performs a credit check, but does not request any sort of documentation to verify the information you provide. Although there is not a reliable industry standard definition of pre-qualification, it is not until a lender has approved your loan application without conditions that you can rest assured that the lender has committed to financing your loan.

• 42 percent of the polled prospective home buyers did not understand that Federal Housing Administration (FHA) loans are available to ALL buyers. Instead, they believe only first-time buyers qualify. FHA loans can cost less for many buyers, including repeat buyers with low to average credit scores and with down payments of less than 20 percent. FHA loans can provide many prospective home buyers the opportunity to achieve their goal of home ownership.

Your best plan of action for getting a better understanding of mortgage facts is to meet with a Realtor who can explain the basics and then put you in touch with a mortgage lender who can guide you through the mortgage process. There is much to gain by being an informed buyer.

Wallingford Real Estate Review – April 2011

May 3, 2011 by admin

: Spring Blooms In Wallingford

WALLINGFORD REAL ESTATE

There were 14 Wallingford homes sold during the month of April 2011.

Address	Bed	Bath	Price	Settled
123 Westminster Drive	4	1.1	$232,750	04/08/11
800 Avondale Road 6Q	1	1.0	$103,500	04/15/11
27 Green Valley Road	4	2.1	$278,000	04/20/11
510 Maple Road	2	1.1	$113,000	04/21/11
503 Bickmore Drive	4	2.1	$362,000	04/22/11
213 Maple Road	4	2.0	$262,000	04/25/11
803 Pine Road	4	3.0	$270,000	04/25/11
213 Martroy Lane	4	2.0	$410,000	04/26/11
1 Sharpless Lane	4	2.1	$325,000	04/27/11
227 Sykes Lane	4	2.1	$290,000	04/29/11
780 Pennsylvania Avenue	3	1.0	$115,000	04/29/11
17 Chestnut Parkway	3	1.0	$155,000	04/29/11
1013 Putnam Blvd	3	3.1	$189,900	04/29/11
503 Morris Lane	4	2.1	$370,000	04/29/11

These homes were on the market an average of 119 days, with the average settled price representing 89.46% of the original asking price, and 93.67% of the last asking price.

One seller was priced to sell, being on the market for only 2 days – 1013 Putnam Blvd. It took slightly over one year, 369 days, for the home at 27 Green Valley Road to go under contract.

Conventional financing was used in 9 of the transactions, followed by 4 homes using FHA financing, and 1 home sold for cash. There were no Short Sales or Foreclosures reported.

April 2010 Activity vs April 2011

	*UNITS*	*AVERAGE*	*DOM*	*STL TO ORIG*	*STL TO LAST*
2010	6	$226,733	100	92.29%	95.84%
2011	14	$248,296	119	89.46%	93.67%
	133.3.%	9.5%	19.0%	-2.83%	-2.17%

There were 4 Swarthmore homes sold during the month of April 2011.

SWARTHMORE REAL ESTATE – APRIL 2011

Address	Bed	Bath	Price	Settled
732 Yale Avenue	5	3.1	$355,000	04/04/11
801 Yale Avenue – #206	0	1.0	$32,000	04/08/11
613 N.Swarthmore Avenue	3	2.0	$223,100	04/08/11
415 South Chester Road	5	4.1	$424,500	04/15/11

These 4 Swarthmore homes were on the market an average of 250 days, average settled price representing 77.32% of the original listing price, and 88.27% of the last listing price.

3 Chatham Place – Open House – Sunday May 1 From 1 Until 3

April 29, 2011 by admin

: 3 Chatham Place

3 Chatham Place, Wallingford, PA – $347,200

OPEN HOUSE SUNDAY MAY 1 FROM 1 TO 3

Last weekend’s Open House was so well received that Weichert Realtors, Media again presents the opportunity to see one of Wallingford’s stately older homes. This 5 bedroom 3.5 bath home is located on a cul-de-sac, awaits a buyer who appreciates the potential in the restoration of this 83 year old treasure. It’s 4,300 square feet features the craftsmanship of a bygone era – 5 bedrooms 3.5 baths, back staircase, 2 fireplaces, hardwood floors, generous room sizes – a 15′ x 28′ living room for example. There is also a 2 car garage, full basement, and a large attic that is ready for finishing. Stop in at the Open House – Sunday May 1 from 1 until 3 PM – while you still have the chance!

Listing Agent: Carolyn Sabatelli

Phone: 610-566-3532

3 Chatham Place Back

3 Chatham Place

PA Sprinkler Law Repealed

April 21, 2011 by admin

Sprinkler Requirements Repealed

The mandate that required sprinkler system installation in new homes in Pennsylvania will be repealed by the end of the month via HB 377.

The mandate which required mandatory sprinkler systems in new one and two family homes was part of the Uniform Construction Code (UCC) which became law on January 1. Concern about the increased costs of the systems in a struggling new construction market was the driving force behind the repeal.

The National Association of Home Builders estimated that a sprinkler system could add as much as $5,573 to the price of a new home. Under the new law builders will be required to offer sprinkler system installation as an option to new home buyers.

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