PA Residents Strike Gold in Their Golden Years

A recent Forbes article placed Pennsylvania second only to Georgia on the list of the states that offer the best deals for residents older than 65, according to tax experts. PA seniors benefit from an income tax system designed to be favorable to retirees. Social Security benefits, formal pension plans and IRAs are not subject to state income tax – and many older residents also qualify for tax forgiveness, so they don’t have to make estimated payments on interest or dividends from investments. Many PA seniors also take advantage of property tax and rent rebate programs.

Tax advantages are just part of the pluses that attract seniors to PA – resulting in the third highest percentage of older residents in the nation. To enhance the quality of life for these older Pennsylvanians, a wide range of special programs and benefits are offered through a variety of public entities: Pace and PaceNet prescription drug programs, free and reduced-fare transportation, senior centers and hot-meal programs, as well as unique employment, social, educational and volunteer opportunities.

Many of these “senior specials” are funded by the Pennsylvania Lottery – the only U.S. Lottery whose proceeds are dedicated solely to the benefit of older residents. The various county Area Agencies on Aging provide first-source clearinghouses for senior benefits and programs:

• Monroe County Area Agency on Aging
• Pike County Area Agency on Aging
• Carbon County Area Agency on Aging
• Wayne County Area Agency on Aging
• Northampton County Area Agency on Aging

East Stroudsburg University is a great resource for Pocono seniors. In addition to a variety of lectures, arts events, and other activities that are free to the public, ESU invites senior citizens to enroll in courses tuition-free – though they are responsible for any class fees. Students must be legal residents of Pennsylvania and must be retired (not presently engaged in full-time employment). The program allows a maximum of six credits (usually two courses) per semester in non-degree status, and registration is done on a “space available” basis. Click here to find out more.

Pocono Family YMCA has senior-friendly features including special pricing for older adults and programs including general fitness, arthritis excercise and aquatics. Check it out by clicking here.

Monroe County Transit Authority offers expanded routes and reduced fares for seniors through the Shared Ride program. For more info visit their website.

Retired and Senior Volunteer Program (RSVP) of Monroe County is a terrific place for older residents to use their experience and talents to help others, while making friends and having fun, too. You can reach RSVP of Monroe County at (570) 420-3747

For a detailed explanation of Pennsylvania’s senior-friendly advantages, contact me for a printable copy of the brochure, “Benefits & Rights for Older Pennsylvanians”.

Super Summer Road Trip Sites

Attention Summer Road Tripsters – there’s much more to auto travel than Mapquest, Google, or your handy GPS! Check out these sites for some dandy trip-planning tools and tips:

AAA.com – You don’t even have to be a member to take advantage of AAA’s famous Trip-tics, and now they’re interactive! You can not only map out your travel, but check out attractions, notable events – and of course, food and lodging options along the way. I got so detailed that I even checked out a menu for a restaurant we’re considering in Pittsburgh. Clicking on the “I” icons on the map will take you to online AAA Travel Guides, complete with city guide info. There’s even a handy demo to help you make the most of their cool travel tools.

GasBuddy.com – This site helps you find the cheapest gas around by taking user reports from all around the country. (You can get points and prizes for participating.) PLUS, if you enter your car’s year, make and model, it has a link you can use to calculate round trip gas costs, including tips on the cheapest stops along the way. It’ll even calculate your carbon footprint. PS – Cost2Drive.com will also calculate your trip costs, and it’ll automatically check discount travel site Kayak to see if it’s cheaper to fly.

If you’re looking for suggestions on where to go or what to do when you get there, try RandMcNally.com. Yup, the road atlas people. They have all kinds of preplanned road “Best of the Road” travel ideas (like Philly to the Poconos), including attractions and events, and they’re coming up with more all the time. If you have a particular destination in mind, you can search for things to do in the vicinity. You’ll also find City Guides, National Parks, and more. For lots of user reviews, browse through the trip plans and journals at Yahoo Travel.

Is the Market Heading for a Turnaround?

“So how’s the market doing?”

In the past week alone I’ve had that question from complete strangers who noticed my Realtor® pin, as well as the deli clerk, the veterinarian, family, friends, and clients — and my enthusiastic answer these days is “Much better!” – based on several factors:

Home Sales

Pocono home sales were up a whopping 27% in April. While the April 30 tax credit deadline certainly helped to goose homebuyers off the fence and into action, the most recent local stats show that year-to-date sales are up by 13% — suggesting an overall turnaround that’s very good news indeed.

Our local market is even outpacing national stats out this week, which show a year-over-year increase of 22.8%.  National Association of Realtors Chief Economist Lawrence Yun is optimistic. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy, and mortgage interest rates that remain historically low,” he said.

Yun called the homebuyer tax credit “a resounding success” as a component of “underlying trends that point to a broad stabilization in home prices.”

“This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure,” he noted.

“Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears essentially over,” Yun said.

Amen to that!

Home Prices

Home prices are another factor motivating today’s buyers – and if you’re a seller, it’s an area of our local market with room for improvement. While the national median home price was up 4 percent from April 2009, year-to-date median home prices in the Poconos are down 5.6% over last year. The good news is that Pocono median prices took a definite upswing from March to April – we’ll just keep our fingers crossed that the trend continues. The number of foreclosures seems to have dropped – at least for now. As the schools let out and buyer activity picks up, now is definitely the time to make sure your home is attractively priced and in the spotlight!

Interest Rates

Speaking of upward trends, despite a few brief upticks in recent weeks, last week’s average national mortgage interest rates were at historically low levels of just 4.8%. Why are these rates so motivating? According to some predictions, rates could approach 5.45% or higher by November. On a 30-year $200,000 loan, this would cost buyers over $14,000 in buying power. With a full-point hike the same buyers would lose over $21,000 in buying power. Simply put, market-smart buyers would rather spend that on a home than give it to the bank — so they are anxious to lock in these great rates while they last!

Four Reasons To Buy – Even After The Tax Credit Ends

The Homebuyer Tax Credit is in its final days (buyers must be under contract by the end of April). But even after this incentive ends, there will still be plenty of reasons to buy a home.

In fact, despite the challenges in the market has faced, a recent Fannie Mae housing survey shows that 65 percent of Americans would still rather own a home than rent – and 70 percent say the believe that buying a home is still one of the safest investments available.

Here are just a few of the reasons why owning a home remains a smart choice:

1)   For those of us who just sent our annual greetings to good ol’ Uncle Sam, property tax and mortgage interest tax deductions are often our biggest tax breaks. And for most Americans, our home itself is our biggest asset – the foundation of our financial security. According to the Federal Reserve Board’s Survey on Consumer Finance, the average homeowner’s net worth is 47 TIMES that of a renter’s. Even homeowners who have seen the value of their property slip have told me “at least I’m not renting with nothing to show for it.”

2)   Profit Protection: There’s even more good news from the tax man when you sell your home. Did you know that if you’ve owned your primary residence for 2 of the last 5 years, any gains that you make from selling it can be tax free? (Ask your tax advisor about the specifics.)

3)   Despite recent upticks (after the Fed stopped buying mortgage-backed securities), mortgage interest is back at all-time low levels. When I was a young newlywed we had a mortgage at around 12%. In fact, over the past 30 years, mortgage interest has averaged at around 9.2%. I couldn’t have imagined the rates would be hovering under 5% like they are now. And there are still some great opportunities to help today’s first-time buyers make the transition to homeownership!

4)   The second-home market is sizzling. We’re finding amazing deals in the Poconos’ hottest vacation and resort areas, and inventory is on the rise. Motivated sellers have gotten the message that they have to price aggressively to get results – and second-home bargain hunters are lining up to take a look. I’ve also seen a number of pre-retirement buyers who took advantage of the equity in their current home to purchase a Pocono getaway now. In a few years when prices go back up, they’ll sell their primary home, pay off that equity loan and start living the Pocono lifestyle year-round!

Bottom line: You may never see this “perfect storm” of low rates, low prices and great selection again. So maybe there will be a new tax credit — or if you listen to the Wall Street Journal, maybe there won’t. Either way, now is a terrific time to buy your Pocono home. Contact me now and we’ll start shopping while the market is hot!

Home staging on a budget

Making your home attractive to potential buyers doesn’t have to be left to a professional stager. There are plenty of things you can do on your own to encourage a quick, “top-dollar” sale. The key is objectivity. Think FRESH, BRIGHT, and OPEN – and walk through your home like you’ve never been there before.

The First Impression

Studies have shown that buyers start to make up their minds about a property within the first 15 seconds — so pay particular attention to your home’s approach and entry. This is a great time of year to give your entry a fresh coat of paint; trim landscaping and/or add a few container plants to enhance curb appeal. And remember, clean windows make a huge difference, inside and out!

Interior Tips

Throughout your home, décor and furnishings should be simplified. Especially if you’ve lived there for several years, you should “thin out” your furnishings and cut your décor by half. Yes, that includes family photos – they take attention from the home’s features, which is what we want buyers to focus on. Sparsely furnished rooms appear larger and allow for easier traffic flow from room to room. And simple decor makes it easier for buyers to mentally ‘move in’ and picture their own belongings in the home.

PS – Don’t forget to patch and touch-up walls where you’ve removed pictures – and be sure to clean/touch up those light switches. We don’t look at them because we know where they are, but our buyers see them every time!

In the kitchen, remove everything possible from countertops and other surfaces. Boxes on top of the fridge and snacks on the counter make it look like you don’t have enough cabinet space. And if you know me, you know that my pet peeve is ‘refrigerator art.’ Marketing your home means it’s time to put away those special photos, adorable drawings, take-out menus, etc. so your buyers can focus on a sleek and uncluttered kitchen.

Dress up your dining table with your nicest dishes, napkins and rings, and a tasteful centerpiece. If your hutch dominates the room, consider packing it up – just leave the sideboard for storage. Consider fresh flowers in the entry, dining area, and/or living room.

Bedroom closets should be cleared out and organized – believe it or not, buyers look at spaces like closets, garages and basements as a clue to how well your home is maintained; if you’re neat and organized in the places that don’t show, they have more confidence that your home is well maintained overall.

Bathroom clutter is easy to overlook – make sure your ‘get ready’ supplies are tucked away each day, and don’t forget to clear out the shower as well. Remove unnecessary furnishings and limit the décor – it’s so easy to make a bathroom appear tiny with an extra chair here and a tchotchke there.

Once you’ve started packing, if you don’t want to rent a storage building just keep boxes and furniture in the garage or in one “staging” room, rather than throughout the house.

Preparing for a showing…

When preparing your home for a showing or an open house, you want to appeal to all of the senses. Remember – think FRESH, BRIGHT, and OPEN. Turn on interior and exterior lights to provide a cozy, welcoming glow. Play quiet instrumental music, light classical or jazz (Blue Ridge Digital Cable has some nice digital music channels up in the 800’s, or you can have some CD’s ready.) Open up all the curtains and blinds. Pay attention to the temperature of the room – turn on ceiling fans or air conditioning in warmer weather, or just open up some sliding doors and windows if it seems a bit stuffy. And consider using a SUBTLE, “cooking” fragrance like apples and cinnamon or vanilla. But don’t leave candles or stovetop on – safety hazard!

Staging an “empty” house

Even unoccupied properties can be inexpensively staged using low-cost, low-maintenance tricks and a few things that can be “borrowed” from your primary home.

Consider silk hanging baskets or container plants at the entry to give a welcoming impression with no maintenance. In fact, larger silk plants can be used throughout the home to create an attractive focal point or draw attention to special features.

For empty bedrooms, use one of those inexpensive air mattresses on a platform, or take a cue from department stores and create a “fake bed” from moving boxes. Cover with a nice comforter and some decorative pillows, use TV trays with fabric toppers to create bedside tables, put a (silk) tree in the corner and presto, an instant bedroom!

For living areas, consider a second-hand sofa and chairs dressed up with attractive slipcovers. And some nice patio furniture (with table settings of course) can make an empty dining area feel inviting and spacious. Bathrooms and kitchens can be dressed up with decorative linens and silk floral arrangements.

Seeing your home through a buyer’s eyes can be challenging, especially if you’ve owned the home for a number of years. Contact me for a free consultation with customized tips on how to stage your property for “top dollar” results. If you’d like to hire a staging professional, I can also provide some excellent local resources. And for even more spring clean-up and staging tips, click here.

Top 10 Features on Today’s Buyer Wish List

As most remodelers know, it’s always a good idea to consider the resale value of any project you are considering. For instance, you may want to use neutral colors for major items like flooring, tile and counters, bringing your personal touch and splashes of color via accessories and textiles.

 

Sources at the recent International Builders Show report that today’s buyers are seeking cost-effective features and rejecting things that don’t have lasting value. “It’s all about family togetherness – casual living, entertaining and flexible spaces,” says Carol Lavender, president of the Lavender Design Group in San Antonio. 

1.   Large kitchens with islands
2.   Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
3.   Home offices
4.   Main-floor master suite
5.   Outdoor living space
6.   Ceiling fans
7.   Soaking tub in the master suite and/or an oversize shower with a seating area
8.   Stone and brick exteriors rather than stucco or vinyl
9.   Community walking paths and playgrounds
10.  Two-car garages, but three-car garages are even more desirable

For advice on the features & finishes most popular with today’s Pocono buyers, contact me today!

In their annual survey of buyer preferences, Avid Ratings identified these must-haves in new homes:

Smart Pocono Homebuying: Step by Step

 There’s simply no better time to buy a Pocono home than right now! Record-low interest rates are saving today’s buyers tens of thousands over the life of their loan. Buying before April 30 means primary-home buyers will get thousands more in dollar-for-dollar tax credits. Plus, low home prices overall mean you’re getting a great deal, too.

So buying a Pocono home today is definitely smart – but there are smarter ways to go about it. Here are some tips:

1)      Start Smart: Despite what you may have heard about today’s market, the best bargains sell quickly, so you need to be prepared. If you think you’ll need financing, start with a preapproval from a lender with Pennsylvania resources. With this preapproval in hand, you’ll be confident that you’re shopping within your comfort zone. And sellers will know that you’re a qualified, serious buyer – so they’ll be much more likely to negotiate favorably with you.

Have at least $1000 in a checking account so you can get a certified deposit check quickly. If you’re a cash buyer, have your funds in an easily accessible account, and have a copy of your bank statement(s) so you can show proof of funds for the purchase.

2)      Do a Smart Search. Despite what you may have heard in those “get rich quick” info-mercials, foreclosures and short sales are not the only bargains in the market. The median residential sale price for the Pocono MLS in 2009 was just $145,000 – yet only 27% of the sales were foreclosures, and just 1% were short sales (properties in which the market value is less than the mortgage balance). So nearly 3 out of every 4 sales in this bargain market were privately owned homes.

More points to consider: Foreclosures can be terrific deals, especially for buyers who can do some fix-up work. But if you need low-downpayment financing such as FHA or Rural Housing, it may be challenging to find a foreclosure thats in good enough condition to pass the inspection requirements. And short sale negotiations with financial institutions can tie up your purchase – and your deposit – for literally months, with little chance of success. With so many other homes on the market, that may not be the wisest investment of your time and money.

 3)      Make a Smart Offer. There’s certainly nothing wrong with looking for a bargain property that’s priced low for its area. But contrary to another info-mercial fantasy, offering pennies on the dollar is NOT a formula for success. In fact, in the 2009 Pocono MLS the average sold price vs. list price ratio was 94%. Prices are already low, and bargain-priced properties still sell very quickly. Wasting time and effort with “lowball” offers will most likely leave you outbid – and out of luck.

If you’re serious about buying smart, be ready with your preapproval from a PA lender in hand and your deposit money in the bank. Look at ALL well-priced properties, not just foreclosures and short sales. And be ready to make a reasonable offer so you won’t lose out to someone else while you’re busy pitching “lowballs.” Add it all up, and you’ve got a Smart Plan for cashing in on the red-hot Pocono home market now. So let’s get started - contact me today!