Upper Darby Township Market Statistics

Here's Upper Darby Township's Market Statistics. This represents all of the data collected on our local Multiple Listing Service.

If you click on the picture it will enlarge the data. Also, DOM stands for Days on Market.



Interesting Stuff...let me know what you think??

Check out www.TalktoTyler.com and I'll keep you posted.

Haverford Township Market Statistics

Let's take a look at this Year's market in Haverford Township. This represents all of the data collected on our local Multiple Listing Service. Take a look, the numbers might surprise you.

If you click on the picture it will enlarge the data. Also, DOM stands for Days on Market.



Let me know what you think??

For more info go to www.TalktoTyler.com.

I'll keep you posted.

Incredible New Listing

Welcome to 920 Wootton Road, Bryn Mawr, Pa

Located on a premier 1.59 acre site, this elegant design by McIntyre, Capron & Associates P.C., blends into the beautiful countryside of Bryn Mawr. Featuring a timeless stone and stucco exterior, graceful roof line, and the unique touches of a country colonial, Millbrook combines utility and beauty with an awareness of its surroundings. Please note that the square footage does not include the additional 2500 sq/ft walk out basement.

* 5 Bedrooms, 4 Full Baths, 2 Half Baths

* 1st Floor - 2,686 sq/ft

* 2nd Floor - 2,806 sq/ft

* Full Unfinished Walkout Basement - 2500 sq/ft

* 3+ Car Garage

* 1.59 Acre Site

* Stone & Stucco Exterior w/ Full Stone Front

* Custom Kitchen Cabinetry & Lighting w/ Commercial Grade Appliances

* Butler's Pantry

* Breakfast Nook w/ Vaulted Ceiling

* Family Room w/ Vaulted Ceiling & Fireplace

* Dining Room w/ Tray Ceiling

* Living Room w/ Coffered Ceiling & Fireplace

* Study w/ Fireplace

* Master Bedroom w/ Tray Ceiling & Sitting Room

* 2nd Floor Laundry

For floorplans, elevation drawings and more details checkout http://www.920woottonroad.com/ & http://www.talktotyler.com/.

Please contact Tyler Wagner to schedule an appointment with the builder.

Calling New Investors!

I recently sent an email detailing several areas of real estate investment and thought it might be helpful to share this with everyone. As this was a response to several different inquiries, it jumps around but covers a lot of basic information should start to learn about if your thinking of investing in real estate.

U & O

Township U & O (Use & Occupancy) is required by most townships and is typically paid (in Southeastern Pennsylvania) by the seller. In properties where the owners are either short on funds, going through foreclosure proceedings, or when dealing with bank owned properties, seller’s often require that the buyer pay for the township’s inspection and make any necessary repairs to the property. Each township has different requirements that must be met in order for the seller to convey the property to a buyer. It’s the townships’ way of trying to keep properties to certain level of quality.

In Upper Darby Township and Haverford Township, they require that all curbing and sidewalks are in good condition, that address numbers are visible on the property, and that there are smoke detectors on all floors and bedrooms of residential properties. On commercial properties, which include commercially zoned properties and properties with 4 or more units, township inspectors often go through the properties and can basically point out anything they feel is a safety hazard. This could include out dated electrical systems, GFCI outlets near water sources, repairs to roofs, tripping hazards, etc. The cost of their inspection is about $100.00 and then any further repair all depends on contractors and the extent of repairs. The nice thing about dealing with row home properties is that typically a row is only 16’ or 18’ so even if you had to replace some curbing and sidewalks, its not that big of an area.


Other Inspections:

Whenever you have a rental property, most townships require that you get a renter’s license. This cost depends on the number of units but its annual and I just paid about 75.00 for my license in Upper Darby Township. Additionally, the townships want to come through and inspect the property, whether there is a tenant occupying the property or prior to their occupancy. For rental inspections, they are looking for any safety hazards. You are required to correct any items pointed out within 90 days.

Small Commercial vs. Residential

There are positive sides to each type of investment but here’s a run down for both:

Positive:

Commercial
- Often you have tenants looking for long term leases, b/c small businesses often hope to continue there business through the several years.
- You can require commercial tenants to pay all utilities, utility maintenance, insurance, even taxes if they are willing. It’s not always the case, but if a business wants a location, they are willing to spend more.
- You can set up long term leases that include set rent schedules that increase. This allows you to calculate your return on investment more accurately.

Residential
- Everyone needs a house and residential is open to any qualified renter.
- Residential doesn’t require specific changes to a property.
- If the property has the necessities and things work, usually you find someone to live there
- You don’t have to deal with zoning issues or change of use

Negative:

Commercial
- Zoning may not allow certain tenants to use the space. Any change of use has to be approved by the township. If a store front is being used as an accountant’s office and then wants to be changed to retail, you have to see if this use is allowable.
- When a commercial tenant leaves, you may have to undue changes they’ve made to the property…you can sometimes reduce this by putting certain wording into a lease.
- B/c of special use, a commercial property may take longer to rent then residential.

Residential
- Renters may not take care of the property and cause damage
- Quality of renters can often be lower
- Finding the tenant when payments are over due can be more difficult


Properties with Existing Leases

Whenever you buy a property with a current tenant, the lease remains with the property. This means that the terms and conditions which the tenant agreed to will remain in effect. You will actually have to sign off on the leases prior to settlement. There’s good and bad here too. If the lease does not allow for a “kick out” clause, and the rent is below market, you might be stuck with a tenant ‘til the end of the term of the lease. On the other hand, if the rents are strong and the property looks to be well taken care of, you could be in an excellent situation.


Multi units

Multi units lower your risk of having 100% vacancy, as typically all units won’t be vacant during the same period of time. There are definitely multi units available with & without renters in the area…it’s more of trying to find ones that aren’t overpriced.

When owning a multi unit property, you want to make sure that the utilities have been separated. If not, often times the landlord takes on the burden of paying heat, electric and hot water. Additionally, if utilities have been separated, landlord still pays for cold water to the property, b/c that’s not typically separated as it comes into the house.

Market Overview:

Residential (excluding sales over 1 million)

Upper Darby 2004 2005 2006 2007
Average Sales Price 127,344 142,223 158,157 165,818
Days on Market 32 30 38 50


Havertown 2004 2005 2006 2007
Average Sales Price 276,644 304,679 307,452 308,832
Days on Market 30 36 47 52


Commercial & Multi Unit Properties (excluding sales over 1 million)

Upper Darby 2004 2005 2006 2007
Average Sales Price 127,344 142,223 158,157 165,818
Days on Market 32 30 38 50


Havertown 2004 2005 2006 2007
Average Sales Price 276,644 304,679 307,452 308,832
Days on Market 30 36 47 52

You can see that the Days on Market (DOM) have increased which is a strong indicator that the market has slowed down over the last couple years. This also causes for me inventory to build up on the market.

Rental Data

While this data takes a little more mining, it is very neighborhood specific. I would recommend when we find a property that we research what landlords are asking by going onto Craigslist.org. While I have some data on the Multiple Listing Service, most landlords rent privately or through property management companies which advertise in newspapers and online sites like craig’s list. In the northern sections of Upper Darby Township, 3 bedroom, 1 bath rows typically rent anywhere from $1100 to $1300, one bedroom units around $600 and 2 bedroom units between $700 & $800.

I always like to take a conservative perspective when it comes to potential rental income. Another big factor that has be taken into consideration is the condition of the property and what has to be fixed and how soon. A property in good overall condition is worth a lot, even if the rent is a bit on the low side.

Last thought, b/c rental data is less abundant; the market place remains less of an exact. If your property happens to be the nicest available at the time, people will be willing to pay a little more.

Financing to Consider

The goal is to put as little money down as possible with the highest returns. When you’re looking at properties you want to make sure and look at the full picture. This includes:

Cost of Purchase – An easy way to get an idea of this is by figuring about 5% of the sales price. This will cover items such as mortgage fees, title insurance, tax reimbursements, tax escrows, insurance escrows, and 1 % transfer tax
Down Money – Most banks require at least 10% down on an investment property and often times more when it comes to commercial investing. 20% down is probably most common.
Renting Fees – Usually a license is about $75.00 a year + the inspection costs which might be another $50.00. If you wanted our office to rent the property for you, advertise in local newspapers, show the property and pre qualify renters, we charge one month’s rent. If you’d like us to manage the property for you, which includes collecting rents, providing you with a monthly statement and acting as a go between when renters have maintenance requests, we charge 6% of the monthly fee.


There are no dump questions. Please ask and I will share my knowledge. Also, check out all my listings and other cool features on www.talktotyler.com

I'll keep you posted.

How is the Fed helping?

So the Fed decided to drop interest rates a .5%!? Should we start to get excited?? Probably not too excited, but it's moving interest rates in the right direction for consumers. The Fed's action represents their concern for the real estate and mortgage markets around the country.

So how does the system work?

The Federal Reserve's interest rate represents that cost of lending money for banks. For example, if the Federal Reserve's interest rate is 5%, it costs banks 5% for any money borrowed. Because banks are in the business of making money, they add their margin on top of the Fed's rate and then offer that combined rate to the consumer. In this example, if the Bank's margin was 2.5%, they would be offering mortgages at 7.5% to the consumer.

So when the Federal Reserve says they are lowering interest rates, it is saving banks money. While it seems like this savings should be reflected to the consumer, this may take a while, depending on each banks situation. If the bank has remained conservative and didn't have too many high risk loans in their portfolio, they might be able to give consumers a break sooner then later. The key here is that the banks should be able to recover some of the their losses and therefore help out their consumers in the long run.

Will we see any immediate changes?

If you have a floating rate on a Home Equity Line of Credit, and the rate is based off an index that is directly effected by the Fed's rate, your rate should have adjusted. Otherwise, mortgage rates seem to be pretty steady at this point. If the Fed continues to drop rates, we'll see a more direct effect on mortgage rates.



Thanks for checking in and make sure to check out http://www.talktotyler.com/ for my newest listings. I'll keep you posted.

Let's Not Get Too Excited

For the last couple of weeks, if you've been tuned into the news, you've probably heard at least three stories about the declining housing market and problematic mortgage market. If you've really been tuned in, you've heard about 100 stories. As I've been listening and discussing the situation with many, I'd like to try and put things into perspective. Bad news sells and I believe the abilities of the media to sensationalize these issues could actually be causing more damage then the actual issues themselves.

What has caused these problems?

Over the last couple of years, the real estate market appreciated at an incredible rate; far beyond inflation, the consumer price index, salaries and basically any salable product. While home values began to rise, financial lending institutions recognized this opportunity and promoted less restrictive financing products that fueled housing's appreciation rates. Buyers who were once required to put down at least 20% on a home could now purchase with 100% financing, and in some cases 107% financing, therefore needing significantly less funds to close a deal. Further, you could get these loans paying interest-only and with great introductory rates that would last anywhere from 1 to 7 years. For example, when I purchased my home in 2003, while I choose a more traditional loan, paying principal and interest, my introductory rate on my adjustable mortgage was 4 1/8 % for 3 years...an incredible rate.

With these changes in mind, a buyer who could once afford a home for $100,000 now has the ability to qualify for a home over $200,000 if they had good credit and a decent job. The buyers purchasing power increased over 100%!!! With this type of funding available, buyers were willing to pay more and sellers could ask for more.

Why the Doom and Gloom Stories??

While this housing boom worked great over the last 5 years, home values can only appreciate to a value that people can afford. Once you reach that point, the housing market has nowhere to go but down. If you live in New York, San Francisco or anywhere where the appreciation went completely through the roof, pardon the pun, you're experiencing depreciation and the easiest way to tell is by looking at the inventory of homes. When prices are too high, homes will not sell and therefore remain on the market.

To make matters worse, interest rates have increased over the last couple of years and home owners carrying mortgages that adjust are experiencing large increases in their monthly payments. What used to be a payment of $1000.00 per month could be $1400.00 with just two years of adjustment. That's a 40% increase!! Because of this situation, its no wonder why we've seen foreclosure rates soar. Homeowners can't afford their mortgage payments!

The Chain Reaction

Once the homeowner defaults on the loan, financial institutions begin their foreclosure process, hoping to recoup the amount borrowed by the homeowner. While this isn't a big problem in a growing market, as the property should maintain its value, the financial institutions have huge problems when the property's value declines. Additionally, if the lender has been closing lots of higher risk loans at 100% loan-to-value, any decline in price will have an impact on that lenders bottom line. This in turn has caused many sub-prime lenders and major lenders go completely out of business.

Just last month American Home Mortgage, employer of over 5,000 people and 8th largest mortgage lender in the United States, is gone with no warning. Ameriquest is done. Even Countrywide Home Loans, the largest mortgage lender in the country, announced that is was borrowing over 11 billion dollars to fund its loans!!

The Result

With all of these issues occurring, it has resulted in mortgage companies rewriting there policies and restricting different types of loans. In particular, you'll have a very hard time finding any 100% financing in the market place and you'll pay a premium interest rate for a Jumbo Loan (loans over $417,000). The bottom line is that financing has become less available.

The Bright Side

The areas in the country that are suffering the most from these recent developments are those areas where prices exploded. We don't happen to be in one of these areas. The Philadelphia region, while it did experience quite a bit of real estate appreciation, was more conservative then New York and most of the West Coast. While our region won't be untouched, the market adjustment should not be as extreme.

Finally, if you were financially prepared to buy your home, whether it was last year or 5 years ago, and don't plan on moving for a couple of years, these circumstances may have little, if any, impact on your equity position. Real Estate markets rise and fall all of the time.

What if I want to Sell?

For those of you who might want to sell or need to sell, don't get too worked up. It might take a little longer and you won't get quite as much as you might like, but the home your purchasing should also reflect the lowering of prices in the current market.


Of course, this is a lot to digest. If your interested in more details please check out my website at http://www.talktotyler.com/ or email me at tyler@wagnerrealestate.com

I'll keep you posted.

What is PMI?

PMI is Private Mortgage Insurance and is often attached to a mortgage that is greater then an 80% Loan to value. It can be expensive, but it can also be removed if your property has appreciated in value. Here's the facts that I found on http://www.mortgagequestions.com/:

Can Your PMI Be Removed?
The Homeowners Protection Act of 1998 gives you the right to request cancellation of the private mortgage insurance (PMI) premium that is added to your loan payments. If you do not request cancellation, the law also provides rules for automatic termination of PMI. The law applies to mortgage loans on single family, primary residences originated on or after July 29, 1999 where the borrower is paying the cost of the PMI.For loans closed prior to July 29, 1999, different requirements may exist. To learn about these requirements, email us below.
What is Mortgage Insurance (MI)?
For loans insured by the Veteran's Administration (VA), mortgage insurance ("MI") is typically required on all loans, regardless of down payment. It cannot be cancelled until the loan is paid in full. For loans insured by the Federal Housing Authority after July 1, 1991 mortgage insurance is typically required on all loans based on your **original Loan to Value (LTV) and must remain on the loan until FHA requirements are met. Effective for all loans closed on or after January 1, 2001, most FHA loans will have a provision, which will allow for automatic cancellation of MI when the Loan to Value reaches 78%. For more information regarding your FHA guidelines please contact your local FHA Homeownership center.Mortgage insurance is different from other types of insurance purchased by a borrower and should not be confused with credit life, property, or casualty insurance. Homeowners cannot file a claim against the policy.
What is Private Mortgage Insurance (PMI)?
PMI stands for Private Mortgage Insurance. It is required for all conventional loans when the home buyer puts less than a 20 percent down payment against the **original value of the home. PMI protects the lender against the possible default or foreclosure of the mortgage. This type of insurance is different from other types of insurance purchased by a borrower and should not be confused with credit life, property, or casualty insurance. Homeowners cannot file a claim against the policy. How can I remove PMI from my monthly payments?PMI may be cancelled when certain conditions are met; however, these conditions are specific to your loan, state statutes and lender investor agreements. Some conditions that may determine whether PMI can be dropped from a loan are as follows:
Your Loan To Value Ratio (LTV) Typically this is the loan amount divided by the original value of the property. The lender may allow for current value to be used for PMI removal in some cases.
Age of Loan There is no minimum aging requirement for PMI removal when the original value is used in determining the appropriate LTV.*
Delinquency Your loan must reflect a good payment history and should be current.
Written Removal Request Your request for cancellation must be in writing.

If you have more questions let me know by visiting www.TalktoTyler.com

What Should I Fix First?

Whether we are in a booming market or a slow market, keeping your real estate in good condition can make all the difference. Everyone has different styles and tastes but here are a couple things you might want to consider if your renovating your home or looking to sell in the near future.

First of all, the beauty of home ownership is that the home is yours and you can do whatever you want to with it. When I purchased my current residence in Havertown, the place was a disaster. When I first walked in the front door to this center hall colonial, I looked down to find a 4 ft by 6ft hole in the floor with a piece of plywood laying over top. I soon found out that the current owner had actually cut a hole through the floor so that their relative, and soon to be tenant, could fit his couch into the basement. Beyond this small flaw, the center hall was painted blood red, dark army green and pink. While I could see the incredible potential the home had, I wouldn't recommend going to these extremes with your own home. With this in mind, here are a few suggestions that can make your home both very attractive to you and the general public.

Start Cheap

If you've just bought a home or are thinking of selling, the last thing most people want to do is spend a lot of money. You want to maximize your dollars potential and easiest way to do this is by cleaning and painting.

Cleaning
Yes, as simple as it sounds, people don't realize the power of a clean house. Wipe down the floors, baseboards, stairs...you name it. Don't forget the light switch covers and radiator covers. If your home has old rugs, pull up a corner and see what the floors look like underneath. You might be surprised to find some great looking hardwood with inlays of walnut, especially if the home was built in the early 1900s. Pulling up carpets and shining the floors is in style and can really change the appearance of a room.

Painting
If you've just moved into a house a fresh coat of paint does wonders. Make sure to use a good primer first, (Kils works really well) especially since it will seal out any funky smells that may be lingering in the home.

If your preparing to sell your home, painting will also have a dramatic effect. No matter what your style, neutral earthy colors are in. Shades of tan, yellow, sage green, all look great and keep the rooms bright and looking big. Go with a flat finish on the walls and glossy white finish on the trim work. When your done you'll probably want to stay another couple years.

Also, don't be afraid to switch it up from room to room. Most paint stores have three color combinations that look great. It will give your home a designer feel with very little effort.

Kitchens & Baths
If there are two areas that can really improve the value of you home, its your kitchens and baths. They are typically the most expensive rooms to renovate, but if done right, they will pay off. While high quality cabinetry is often very expensive, anaylze your situation before you purchase. If this a starter home and your only planning on being there for a couple of years, don't go nuts. I priced out my kitchen at a specialty cabinet store and they came up with a price of $16,000.00 just for the cabinets!! Then I went over to Lowes, I found identical cabinets that priced out to $4,800! Its not cheap, but if your diligent, you can really save a lot without loosing the look you want. Another secret, if your thinking short term, is to check out Ikea. While I'm not a big fan of the stores products, their cabinetry is excellent and very inexpensive. They have a bunch of contempary styles, but if you go with a more traditional look, you won't be disapointed. I recently renovated this kitchen to the right with Ikeas white cabinetry.



That's all for now but if you're looking for more tips check out http://www.talktotyler.com/

The Right Price Sells

205 N. Lexington Ave., Havertown, Pa 19083

Welcome to the Beautiful N. Aronimink Section of Haverford Township

• Listing Price: $405,000.00
• 3 Bedrooms (including Master)
• 2 full baths
• Large Detached 2 Car Garage
• Family Room
  

2401 Pennsylvania Ave. 20 B-22, Philadelphia
Welcome to the Philadelphian's 20th Floor

• Listing Price: 279,900
• Large 1 bedroom Condo in the Art Museum Area
• Renovated Kitchen
• New Windows and HVAC System

For more details please visit my website at http://www.talktotyler.com/

One of the questions I get all of the time is "How's the real estate market?" As my blog is it just beginning to grow, I hope that you'll find my market anaylsis clear and correct. As my main market is located in Havertown (Haverford Township), many of my references will come from my home town, however my work extends throughout the region and I'm happy to answer any specific questions on any area around the Philadelphia Region, East of the Delaware River.

Buyers Market

The hot summer days have brought many homes onto the market, placing buyers in a strong position. With plenty of homes to choose from, buyers are taking their time and hoping to see home prices fall. However, when beautiful homes come onto the market, they don't seem to last more then 30 days. Like in most markets, its tough to keep anything on the market that's priced right.

For sellers, the story remains that many are attempting to find a value that is beyond their neighborhood's sales. While we all love our own homes, a good realtor will help you establish the correct value for your home, as it will save you time and money in our current market. Buyers have so many options that they know when a home is overpriced and when its priced to sell.

Here are a few recent examples:

739 Hathaway Lane, Ardmore, Listed by Tyler Wagner
Listing Price: $244,900
Sold Price: $240,000
Days on Market: 21 days





















1507 Robinson Ave., Havertown, Listed by Tyler Wagner
Listing Price: $289,900
Sold Price: $286,000
Days On Market: 18 days

Is Spring Coming or Going?!

With the recent rain and snow we received this past weekend, I'm hoping the weather begins its warming trends for the real estate market and my weekends. While there seems to be quite a few buyers looking for homes, the weather has definitely delayed many from making their way out to open houses.

Here is a look at Haverford Townshp's 2007 Real Estate market (provided by Trend Multiple Listing Service). This information is based on sales between $0 and $999,000 over the 1st Quarter of 2007:

Average Listed Price: $351,083.00

Average Sold Price: $286,268.00

Average # of Days on Market: 63

Compare this information to Haverford Township's 2006 Real Estate Market (provided by Trend Multiple Listing Service). This information is based on sales between $0 and $999,000 over the 1st Quarter of 2006:

Average Listed Price: $324,608.00

Average Sold Price: $294,705.00

Average # of Days on Market: 51


As seen above, it seems that the average sold price and average listing price have gone in opposite directions, spreading the gap by $64,797.00. Additionally, you can see that homes, on average, are sitting on the market 12 more days then this time last year.


Here is a comparison of the first quarters over the last couple of years:


1st Quarter ----Sold Homes---Percentage(+/-) --Days on Market
2003------------- $233,472 -------------------------------- 35
2004------------- $267,836----------- 15% ---------------- 37
2005------------- $301,136----------- 12% ---------------- 46
2006------------- $294,705----------- -2% ---------------- 51
2007------------- $286,286----------- -3% ---------------- 63



So what does this mean??

While the newspapers and media would like to make you think that the sky is falling, Haverford Township's market has remained fairly steady. From the numbers above, the net value of homes has increased 22% over the past 4 years. You can see that the market shot up between 2003 & 2005 and has been re-adjusting since. Homes are sitting on the market a little longer and prices have fallen, but within reason when considering the slow down of the economy.

So, if you've owned a home for 3 or more years you've enjoyed quite a bit of appreciation. If you've improved your home, you should enjoy an even larger amount of appreciation.

Now, on the flip side, if you are a buyer, we're seeing that prices have come down a bit from the spike in 2004. With the spread of listing price and sold price increasing, it seems seller's have not come to a full realization of the market, however are accepting offers below their asking prices. Additionally, with the increase of days on the market, sellers are becoming more willing to consider lower offers. Finally, there is a larger inventory of homes on the market, placing further pressure on sellers to price their homes appropriately. All of these market conditions place buyers in a much stronger position for purchasing a home.

Therefore, while good values still remain in Haverford Township, it seems that the buyers currently have the edge on the market. However, when seller's price their homes appropriately we still continue to see multiple offers.

I'll Keep You Posted

Questions or Comments? Please send me an email or post. For more information and all of the local available homes check out www.TalktoTyler.com

Launching www.talktotyler.com

As of this Friday, March 16th, you will be able to learn a little bit more about my world of Real Estate with the launching of my new website at www.talktotyler.com. As I hope to provide insightful information on my blog, talktotyler.com will be a great resource to search for all listed homes throughout the Southwestern Region of Pennsylvania, as well as links to client testimonials, school information, home value information and real estate news.