Seller Information

Replacement Projects Can Pay Off For Homeowners

January 21, 2012 by admin

According to Remodeling magazine’s 2011-2012 “Cost vs. Value Report,” replacement projects perform better in resale value than other types of remodeling projects. In fact, seven out of the top 10 projects were siding, window and door replacement projects.

The good news for cost-conscious homeowners is that investing in your home in a way that pays off at resale does not have to cost a lot. The high value of most replacements can be contributed to the relatively low cost of these projects. What’s more, the majority of replacement projects immediately improve curb appeal, making the home more attractive to buyers.

Based on interviews with real estate professionals throughout the country, the Remodeling report found that the top project is fiber-cement siding, which typically recoups 78 percent of costs. Fiber-cement siding has been in the No.1 spot for six of the seven years since it was added to the report.

Moving up two spots in the rankings is the minor kitchen remodel, now coming in at fourth place at 72 percent. Considered an “interior replacement” project, this is the least expensive way to give an existing kitchen a complete face lift. It is typically done by adding new cabinet door and drawer fronts and hardware, new counter tops and new appliances.

The right remodeling project, when done well, also has the potential to make for a quicker sale and reduce negotiations with buyers over perceived shortcomings. Review the Cost vs. Value data, which has information for all regions of the country.

Wallingford Real Estate – Wallingford, PA 19086

Real Estate ABC’s – Strategic Default

January 5, 2012 by admin

Many homeowners across the country faced with plummeting home values, are choosing to pursue the path of strategic default on their mortgage. The debt owed on the property is substantially greater than the home’s market value and the property is “underwater”, and they conclude their home’s value will not recover in the foreseeable future. By definition a strategic default occurs when a borrower has the ability to pay the mortgage on a home, but chooses to “walk away” from the home and let the lender foreclose on the property. There has been a term coined “jingle mail” , describing the sound of house keys in an envelope as they are mailed to the lender.

Nationally, 34 percent of foreclosures are the “strategic” variety, according to a September 2011 survey conducted by the University of Chicago. Approximately 10.9 million, or 22.5 percent of all residential properties with a mortgage had negative equity at the end of the second quarter of 2011. Nevada had the highest negative equity with 60 percent of all of its mortgaged properties underwater, followed by Arizona (49 percent), Florida (45 percent), Michigan (36 percent) and California (30 percent). In addition, 75 percent of homes with negative equity have above market interest rates.

While walking away from your home may seem like a simple solution, the process of recovering from a strategic default takes time. The wait to be considered for a home loan can be anywhere from three to seven years after a foreclosure has been completed. While there are a number of factors that lenders consider when evaluating a request for a home loan, this has to go hand in hand with the applicant proving they have been able to manage their debt since the foreclosure. For most people, their credit score is severely impacted once a foreclosure shows up on their credit report. On average, a foreclosure will stay on a credit report for up to seven years after the initial reporting date.

In general, as the foreclosure rating gets older, it has less and less impact on the person’s credit score. However, the time it takes for a credit score to rebound can be enhanced substantially if a person follows some credit best practices in managing his or her debt and simply pays his or her bills on time. According to the Federal Housing Administration, if a person with a past foreclosure has waited three years, has at least a 620 credit score and meets other lending requirements for debt and income, they can qualify for an FHA home loan. Conventional loans, which often have more desirable interest rates, have a waiting period of seven years, and VA loans, two years. In other cases, lenders may not be willing to consider a loan for some time if the reason for the foreclosure was simply because the homeowner chose not to make a payment or because they had too much other debt.

Wallingford Real Estate – Wallingford, PA 19086

Wallingford PA Home Profile – Traits Of Homes Sold In 2011

January 3, 2012 by admin

We welcomed 136 new Wallingford PA homeowners to our community this year during 2011. This represents an increase in 10 sales when compared to 2010. Overall these 136 new owners paid an average price of $301,741, a 6.6% decrease compared to 2010.

What constitutes an “average” home sold in Wallingford during the past year?

88% of the homes sold during 2011 were single detached family homes -115, townhomes accounted for 12 sales – 7%, and there were 8 condominium transactions – 5%.

Single family homes sold for an average price 0f $320,034, and sellers had to endure 148 days on the market before going under contract. Townhouse buyers paid an average of $254,233, and condominium buyers paid an average of $118,250. Sellers paid out an average Seller Assist of $3,357 in 44% of local transactions, one seller had the net selling price reduced by a $19,350 assist.

Wallingford homes sold in 2011 have reached middle age – the average age was 51.5 years old. Single homes had 3.66 bedrooms, 1.95 full bathrooms, and .73 half baths.

On the price spectrum, one new homeowner paid $38,000 on the low end of the scale, while the high price topped out at $872,500.

Colonials were all the rage accounting for 81 single homes sold, followed by 19 Cape Cods, and 13 ranchers. On one of the first cold nights of winter 91 homes have a fireplace, 21 have two, and 4 even have 3 fireplaces. For primary heating 71 homes have gas heat, and 48 utilize oil heat for warmth.

Meals are prepared in a kitchen ranges fueled by natural gas in 40% of homes, but electric cooking was in the majority of homes – 57%. Dishes are washed with hot water heated by gas in 75 homes, and with oil in 18 homes.

Central air cooled 107 homes with an average of 2,124 square feet. The largest home had 5,738 square feet of interior space, while the smallest came in at 635.

68% of new Wallingford homeowners have a garage in their new abode and should be avoiding cleaning snow off of at least one car, 4 homes sold have a 3 car garage. Basements will likely be full of moving boxes in 121 of the homes sold – 89%.

The foreclosure crisis did not avoid the area. Data from the Multiple Listing Service (MLS) indicates that 9 homes sold in Wallingford PA last year were Bank Owned properties – just slightly over six percent – coming in at 6.6%.

Alas our new neighbors would have inherited an average 2011 tax bill of $7,826 – so much for being average. One lucky buyer is paying a budget busting tax bill of $23,508!

Take a look at all 136 Wallingford homes or Wallingford towhouses/condos that sold last year.

Wallingford Real Estate – Wallingford, PA 19086

Wallingford PA Real Estate – December 2011

December 31, 2011 by admin

WALLINGFORD PA REAL ESTATE – DECEMBER 2011

We end the year on a positive note with December sales posting a doubling of same month of the previous year, with 10 Wallingford PA homes sold in December 2011 as opposed to 5 sales in December 2010. However the average sales price took a sharp 16.8% decline.

There were 10 Wallingford PA homes sold in December 2011.

WALLINGFORD PA HOMES SOLD – DECEMBER 2011

Address	Bed	Bath	Price	Settled
401 Trenton Court	2	1.0	$38,000	12/08/2011
612 Morris Lane	4	2.5	$263,500	12/09/2011
606 Morris Lane	3	2.5	$290,000	12/09/2011
742 Windsor Place	5	3.5	$347,500	12/12/2011
404 Christian Lane	4	2.5	$303,450	12/15/2011
100 Brent Drive	4	3.5	$370,000	12/15/2011
103 Garnet Lane	4	2.5	$245,000	12/16/2011
7 Strathmore Court	4	3.5	$715,000	12/20/2011
130 Dundee Mills Lane	3	3.5	$358,000	12/21/2011
402 Sheffield Drive	4	2.2	$359,000	12/21/2011

These 10 Wallingford PA homes were on the market an average of 185 days, with the average sold price representing 87.94% of the original asking price, and 94.99% of the last asking price.

For the short and long of it, Christian Lane was on the market for 24 days, while 7 Strathmore Court was on the market 470 days.

Financing Methods

Conventional – 8
Cash – 1
FHA – 1

A Seller Assist was utilized in 4 of the 10 Wallingford PA homes sold.

612 Morris Lane – $15,810
742 Windsor Place – $10,000
2 Strathmore Court $5,000
402 Sheffield Drive – $1,000

Wallingford December 2011 Activity vs December 2010

	*SALES*	*AVERAGE*	*DOM*	*STL TO ORIG*	*STL TO LAST*
2010	5	$389,600	231	84.12%	95.84%
2011	10	$324,035	185	87.94%	94.99%
	100.0%	-16.8%	-19.9%	3.82%	-0.85%

Looking forward to January there are 5 settlements scheduled for the month.

SWARTHMORE REAL ESTATE – DECEMBER 2011

: Christmas Wreaths – Swarthmore Presbyterian Church

2 Swarthmore homes sold during the month of December 2011.

SWARTHMORE HOMES SOLD – DECEMBER 2011

Address	Bed	Bath	Price	Settled
301 Dartmouth Avenue	3	1.5	$270,000	12/06/2011
550 Walnut Lane	6	2.5	$193,000	12/09/2011

These 2 Swarthmore homes sold for an average price of $231,500, and were on the market an average of 107 days, fetching 80.5% of original asking price, and 93.27% of last asking price.

301 Dartmouth Avenue was on the market 109 days, and 550 Walnut Lane was on the market 105 days.

550 Walnut Lane was a Bank Owned Property.

Swarthmore December 2011 Activity vs December 2011

	*SALES*	*AVERAGE*	*DOM*	*STL TO ORIG*	*STL TO LAST*
2010	1	$134,500	275	84.12%	92.76%
2011	2	$231,500	107	80.50%	93.27%
	100.0%	72.1%	-61.1%	-3.62%	0.51%

Looking ahead to projected activity for January, there are 6 settlements scheduled.

Wallingford Real Estate – Wallingford, PA 19086

Sproul Estates – Wallingford, PA – 2011 In Review

December 29, 2011 by admin

Wallingford PA - Sproul Estates - 110 Cameron Drive

Sproul Estates Top Price In 2011 -110 Cameron Drive – $309,900

Sproul Estates activity during the year of 2011 mirrored the general trend in the Wallingford market – the number of sales increased, but sale prices decreased.

Ten homes sold in Sproul Estates during 2011, compared with 5 during 2010. The average price was $249,955 – median price was $241,375. In 2010 the average sales price was $283,000, and the median sales price was $275,000. This translates into a 11.7% decrease in the average sales price between 2010 and 2011.

Seller’s Assists were very popular with buyers in the community this year. Seven homes had a Seller’s Assist, a rate that is much higher than the local market in general. Assist amounts ranged from $5,000 to $13,500, which drove the net amount to the seller down even further. Factoring in the average Seller’s Assist of $6,126, the average net selling price was $243,829.

As a resident of thhis community I have an keen interest in keeping in close touch with neighborhood real estate activity. I have visited all the listings that have been on the market in Sproul Estates this past year, and I have two observations pertaining to home values in our community. In my opinion prices were adversely affected by two factors this past year – Bank Owned properties – aka Foreclosures, and long time owners who sold this year.

Bank Owned properties accounted for 3 neighborhood sales in 2011. These foreclosures sold for an average price of $216,883 compared to the average price of non-foreclosure homes at $264,271 – a -17.9% difference in selling price. Appraised values take into account recent neighborhood sales, and foreclosures contribute in part to a lower valuation of homes in the community, especially when they comprise 30% of the housing stock that has sold. The sale price 0f the bank owned property at 103 Micahels dipped below the $200,000 mark – selling at $198,000. Prior to this transaction the last sale in our community that was below the $200k mark was in December 2001.

Another factor depressing community prices this year were 3 homes being sold by long time residents. In my view these home were “tired” and in need of updating to bring them in line to what today’s buyers are looking for. To get top dollar in this neighborhood the biggest value add changes that you can undertake is the removal of the wall between the dining room and kitchen, and updating of the kitchen.

Wallingford PA - Sproul Estates - 110 Cameron Drive Kitchen

110 Cameron Drive – Updated Kitchen

Both top price selling homes this year featured these changes.

I had the listing at 110 Cameron Drive on the market for 3 days, and the first people through the home purchased it for full asking price, largely in part to the remodeled kitchen and dining room.

SPROUL ESTATES HOMES SOLD – 2011

Address	Bed	Bath	Price	Settled
118 Governors Drive	3	1.5	$268,000	01/27/2011
110 Canterbury Drive	3	1.5	$250,000	02/22/2011
123 Westminster Drive	4	1.5	$232,750	04/08/2011
130 Westminster Drive	4	1.5	$298,500	05/20/2011
116 Cameron Drive	4	2.0	$278,500	05/31/2011
114 Governors Drive	3	1.5	$227,000	01/27/2011
110 Cameron Drive	4	2.5	$309,900	08/03/2011
209 Stanford Drive	3	1.5	$219,900	09/23/2011
103 Sharlow Drive	4	1.5	$217,000	11/14/2011
103 Michaels Lane	3	1.5	$198,000	11/21/2011

These 10 Sproul Estates homes sold for an average price of $249,955, and were on the market an average of 81 days, fetching 94.76% of original asking price, and 97.07% of last asking price.

Days On Market

119 Governors Drive – 170 days

110 Canterbury Drive – 48 days

123 Westminster Drive – 42 days

130 Westminster Drive – 5 days

116 Cameron Drive – 283 days

114 Governors Drive – 49 days

110 Cameron Drive – 3 days

209 Stanford Drive – 54 days

103 Sharlow Drive – 119 days

103 Michaels Lane – 36 days

Sproul Estates Sales – 2010 vs 2011

	*SALES*	*AVERAGE*	*DOM*	*STL TO ORIG*	*STL TO LAST*
2010	5	$283,000	82	91.36%	95.50%
2011	10	$249,955	81	94.76%	94.76%
	100.0%	-11.7%		3.4%	-0.74%

At year’s end there are currently 2 homes on the market in our community at an average asking price of $307,400.

Wallingford Real Estate – Wallingford, PA 19086

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WALLINGFORD PA REAL ESTATE – DECEMBER 2011

WALLINGFORD PA HOMES SOLD – DECEMBER 2011

SWARTHMORE REAL ESTATE – DECEMBER 2011

SWARTHMORE HOMES SOLD – DECEMBER 2011

S. Clark Kendus