Chip Plumley

Prudential Fox & Roach REALTORS®


Opportunity is knocking for those considering homeownership for the first time. Historically low interest rates, lower home prices in most markets and the first-time homebuyer tax credit - part of the American Recovery and Reinvestment Act of 2009 - brought first-timers to the market in droves during the first half of the year.

In fact, these consumers represented about half of home sales logged during much of 2009's first two quarters, according to the National Association of REALTORS®, a significant increase from historic levels. And the favorable conditions that prompted many of these buyers are likely to continue. Even the first-time homebuyer tax credit - set to expire now on April 30th, 2010 - got a second wind as legislation passed in both houses to extend it into the new year and expand it to help repeat buyers.

Today's opportunities aside, here are eight time-honored reasons why those considering homeownership for the first time should make their move.

1. Pride of Ownership
Owning your own home adds to your own sense of self-esteem and personal pride. The satisfaction that comes from feeling connected to the land you occupy and the home in which you live is ages-old.

2. Security of Tenancy
With homeownership comes stability. When renting, you never know when you may have to move because of new ownership, rent increases or other changes. As a homeowner, you decide when and if you want to move.

3. Privacy
While there are usually some limits on the access landlords have to property, almost all landlords can access your property for necessary inspections and maintenance. For many renters, this lack of privacy is a significant discomfort. Homeowners on the other hand generally have much stronger property rights and experience an increase in perceived and actual privacy.

4. Decorating
Homeowners are free to decorate, remodel and accessorize a home any way they want. Not only do you have the right to make improvements, but the value of those improvements becomes yours as well. Having your living space and exteriors just the way you want them can significantly increase your satisfaction with your living environment.

5. Financial Predictability
When you buy a home with a fixed-rate mortgage, you have more predictability over future housing costs. Because your interest rate never changes, the amount of your payment never changes. Financial planning and credit are more easily managed with a fixed-rate mortgage compared to renting.

6. Building Equity
When you own your own home, you pay rent to yourself instead of a landlord. Most homeowners pay for their purchase by obtaining a mortgage. As you pay off that mortgage, your equity builds and you gain an increasingly larger share in a valuable asset. Over time, that asset can work for you in many ways, such as home equity lines of credit. And of course, a home is a wonderful asset to pass along in an estate.

7. Investment Appreciation
There are certainly no guarantees of property value appreciation. In the long-term, however, real estate valuations almost always increase. This means that when you decide to sell your home, its value may be significantly higher than when you purchased it. The difference in value is called appreciation. You can reinvest that appreciation in other real estate or you may wish to downsize and keep the value of that appreciation for retirement or other purposes.

8. Tax Benefits
In the United States, the cost of home mortgage interest and property taxes are usually tax-deductible. Depending on your circumstances, thousands of dollars in taxes can be saved each year. These tax savings are not limited to federal taxes either. Many states and localities either base their tax system on the federal system or offer similar incentives to homeownership. Some additional benefits are designed specifically for first-time homebuyers. See your tax advisor for additional information.

If you still have doubts, contact a real estate professional in your community. He or she can answer questions you may have about homeownership and explain the buying process to you.

Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635. Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity. All information is guaranteed reliable but should be personally verified by you and/or your representative.

ChipPlumley.com

Chip Plumley

Prudential Fox & Roach REALTORS^®

Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we've become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being "green" with these five tips:

Change Your Light Bulbs

By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.

Buy ENERGY STAR® Appliances

ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.

Seal Up

Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won't shrink or crack, creating less waste.

Use Less Water

Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.

Adjust the Thermostat

When adjusting your home's thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.

Going green doesn't have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a "greener" place.

Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635. Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

ChipPlumley.com

Chip Plumley

Prudential Fox & Roach REALTORS^®

Chip Plumley

Prudential Fox & Roach REALTORS^®

You’ve just toured the home of your dreams and are ready to make an offer. You can already envision upgrades you would like make: a pool in the back yard, window shutters and a black picket fence to match. You’re even excited that your boat will fit in the driveway. Yet, what you may not be aware of is that there are restrictions that dictate what can and cannot be done to or on the property.

Homebuyers, especially first-timers, may not think of asking about restrictive covenants, yet when you purchase property governed by restrictive covenants, you are consenting to abide by those provisions.

A restrictive covenant, which is a type of deed restriction, regulates a group of new and existing homes or building lots. Developers use them to preserve a development or subdivision as a model community and control its use and appearance. Buyers agree to the sometimes-rigid restrictions in order to maintain the aesthetic standard set by the developer and to safeguard the value of their homes.

Restrictive covenants should not be confused with local zoning and government regulations. Some covenants and zoning regulations overlap; for instance, either can limit the height of a building. But, restrictive covenants tend to exert greater control over a homeowner’s lifestyle. In addition to standard clauses, which may stipulate a home’s minimum size, height, architectural style, and color schemes, covenants often ban practices that could be regarded as aesthetically objectionable--such as parking RVs, boats and non-running vehicles on the property.

Covenants may additionally regulate grass height; window treatments; holiday decorations; walls, fences and hedges; as well as pets--some limit number and type of pets allowed. Very often, owners are required to make repairs within a specified number of days of the initial notification. Depending on a community’s location and other unique features, restrictions may be applied to the use of pesticides, herbicides and fertilizers and removal of dirt and trees. Owners can be prohibited from installing solar panels, building an enclosed patio or adding a swimming pool. Restrictive covenants can also prevent owners from renting the home or operating a home business, including music lessons and daycare. Condo and townhouse owners sometimes face even more rigid restrictions.

What happens when a violation occurs? It’s up to the homeowner’s association or individual property owners to enforce a covenant. Local authorities cannot enforce contractual agreements. Instead, it’s likely that a committee would review the complaint, then notify the homeowner. If the homeowner ignores the initial notice, he or she might receive a notice from an attorney. Legal action would be a last resort.

Before You Buy
While most homeowners enjoy the quality of life resulting from restrictive covenants, some covenants may prevent you from living the life you planned. Before committing yourself to a property, be certain you can live with all the restrictions.

Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635. Prudential Fox & Roach is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

ChipPlumley.com

1013

6 First-Time Homebuyer Tips