Nick & Trudy Vandekar

A short video of Berwyn Pennsylvania, located in Tredyffrin and Easttown Townships it is a great place to live with First Friday Events and lots of places to eat and enjoy life from the library to our very own theatre.

I am indebted this week to John Abbbott of Abbott Law Offices in Berwyn who has written a follow up article for me on the new contractor registration law.

In just a few weeks the Commonwealth of Pennsylvania will begin registering over 80,000 home improvement contractors. This is just the first of a two-phase law that was passed in October 2008 and goes into effect this July 1^st.

The registration phase is being handled by the Attorney General's Office so you know it is important. All contractors must apply (most likely thru a web site) in order to obtain a registration number. The key factors in the registration process are:

• You are a "contractor" if you do any kind of work (with a couple exceptions) over $500 inside or outside a residence.
• The application will include social security numbers, home addresses, all prior business names, street address of business (no post office box addresses permitted), home phone number, some criminal records, bankruptcy filings, etc.
• Proof of liability insurance and property damage insurance.

The second phase of the law applies to the contracts that are signed with the homeowner. The law requires all contracts after July 1st to provide for the following:

• All estimates, proposals, contracts and even advertisements must contain the contractor's new license number.
• The contract must be in writing, signed by the contractor and the home owner, dated, and legible.
• The contract must contain an approximate starting and completion date, a description of the work and materials to be used and a set of specifications.
• The contract must contain the names, addresses and phone numbers of all subcontractors.
• All contracts will contain a right to rescind them within 3 days.
• Deposit amounts will be limited.

......and the list of contract provisions goes on even further.

What does all this mean? Well, even though we do not yet have the Attorney General's rules for the application process, come July 1^st the contracting process will get much more complicated in light of all the new contract provisions and requirements. Hopefully this law will have the desired effect of eliminating the bad contractors in Pennsylvania. For further information feel free to contact John Abbott at his offices in Berwyn.

By: John R. Abbott, Esq.
Abbott Law Offices, LLC
1231 Lancaster Avenue
Berwyn, PA 19312
(610) 647-4777

With the new stimulus bill having been signed into law what effect is it likely to have on our home prices in Tredyffrin Easttown School district? Many agents are seeing increased activity among first time home buyers throughout the country and this is reflected locally as well. This being a more built up area our first time home buyers find it harder to afford homes in this district but Chesterbrook, Drummers Lane, Old Forge Crossing and Devon Green offer good alternatives for many first time buyers looking for smaller homes and willing to live in condo or home owner association developments with alternatives of one, two or three bedroom homes. There are also several twins and smaller single family homes available as well.

What needs to be realized is that many banks have tightened their qualifications and this is causing many to believe that they cannot obtain financing. Many buyers are challenged finding finance, but there are several different alternatives including FHA loans that require only 3.5% for down payments and closing costs can be paid through a sellers assist as well. Feel free to contact us to find help, we have lots of sources for finance, including loans that will alow you to do repairs and renovations where necessary.

So as these first time buyers find homes and make purchases this will filter through the market allowing sellers who need to sell first to move up. This may take time to filter through but it will eventually happen.

So how is this going to affect home prices? Currently the financial stress has caused prices to drop in some areas of the school district by as much as 25-30% over 2007 prices and sometimes even 2005 prices. We have seen many homes selling for less than they sold as far back as 2005. Prices have dropped, this will slowly stabalize that drop and many believe that we are close to bottom but prices will not rise for probably the next two years at least. What is important for the banks to maintain and even increase their lending. Whilst their criteria was very loose for several years now these criteria are too tight choking finance, as confidence returns these criteria will improve allowing funds to flow.

What about foreclosures? Our area has been relatively free of foreclosures, but this does not mean that there are not distressed sales in our area that have also affected prices in general and affect buyers attitude as well. As buyers begin to realize that there are less foreclosures in our area they are more prepared to move ahead. But whilst local companies have not been laying off large numbers of staff there has been some cutting back and this has created a nervousness among buyers who are holding back from purchasing a home out of fear of the future. So once again we need to see buyer and consumer confidence to rise for us to see consumers purchasing homes, removing excess inventory and prices rise as inventory drops.

For information on a specific development or home contact us to get a free market analysis that covers nine or ten points in selecting a price point for your home so it will sell quickly and for as much as possible.

In about five months you will be able to check out that contractor you are going to allow loose in or on your home. The new PA Home Improvement Consumer Protection Act of 2008 will go into effect. It will apply to just about any contractor doing work inside or outside a residence. All contractors will have to register with the State and provide personal and company information to obtain a state registration number. Their contracts with consumers will have to contain certain provisions relative to insurance coverage amounts, amount of any deposit, specific address of the contractor, billing procedures etc. In addition the registration number will have to appear on all estimates, advertising, invoices and contracts.

So you can now have a better picture of that contractor and his professionalism whether he is doing roofing, landscape improvements, painting, carpentry, electrical or heating and air conditioning. Local registration is no longer good enough, make sure you ask for his State registration details as well. But remember this won't go into effect for about another five months.

Last week we held a seminar at Easttown Library at which we covered some recent market stats for Tredyffrin and Easttown Township homes.

There are currently 140 homes on the market priced between $350,000 and $1.5 million. Average price of these listings is $691,238. The average days on market to sell a home last month were 106. That means that of all the homes sold in January the average time it took was 106 days. there are currently about 32 homes selling a month in the two townships so it will take about 4 months to sell the current inventory if no other homes are listed. And over the last 12 months there were 148 homes that did not sell and their listings either were withdrawn or expired without being relisted.

Now each market segment will vary by price segment and if you would like more detailed stats relative to your own home or a home you are considering purchasing please contact us.

Overall we have seen prices ease in our area, but homes are selling when priced correctly. There are buyers out looking spurred on by the low interest rates but they really need motivation to act and take the next step. Homes need to be in good condition, with updated bathrooms and kitchen, adjusting the price for older kitchens and baths is not causing buyers to move. Further buyers are being selective following home inspections, so maintenance is important as well. This all being said we are having success with homes selling and reaching settlement.