Real Estate Information Archive

If you watch home-and-garden cable channels, it looks like everyone is flipping houses. i.e. buying a piece of real estate, making minor repairs, and quickly selling it at a substantially higher price.  Basic investing 101: Buy low, sell high.

Certainly sounds appealing--and you may be tempted to join the ranks of those who have been successful in this field.  Be forewarned, however, that like most money-making endeavors, real estate flipping requires time, money, patience and skill.

For tips on how to begin, steps to follow, and advice on how to avoid pitfalls, read on…

Do your research and be knowledgeable well in advance:

• Talk to (and learn from) successful flippers, read up on the subject, follow real estate deals in the newspaper, use the Internet as a teaching resource, attend open houses and auctions.
   
• Identify possible house locations, size, and style.  Educate yourself on how to recognize promising properties and how to spot a lemon.
   
• Familiarize yourself with current prices, taxes, utility rates, HOA fees, municipal and restrictions in each area you are considering.   Study your market. Get to know it as well as you possibly can. Understand the trends, the kinds of houses, the neighborhoods, the streets.
   
• Visit the potential homes and neighborhoods in person.  Talk to residents, Realtors, and repair companies who are familiar with the area.

Set up a budget, a time line, and financing:

• Figure out how much money you have (or can put your hands on using investors) without borrowing.
   
• Calculate the cost of repairs, taxes, utilities, materials, contractor/labor expenses, and the like.  Professional contractors advise flippers to add an extra 10% to their repair estimate.  Also, to be on the safe side, make sure that you’ll be able to hold on to the home as a rental property for a while, if need be.
   
• Experts suggest factoring in the flip time into your budget and your potential profit before you purchase the home. According to investors, a successful flip is one that makes you around a 15% profit.

Be prepared:

• When you find the right house, you must act quickly to buy it.
   
• Have appraisers, agents, contractors, skilled laborers lined up so they can start work immediately upon your purchase.  Remember, in flipping, time is money!
   
• Be ready to make quick decisions, devote a great deal of time (and possibly sweat equity) to this project, and face unexpected expenses.

Two major caveats:  Be patient and don’t get greedy!

Information courtesy of New Castle County DE Realtor Tucker Robbins.

Curious about your home's current value? Get an instant market valuation here!

Information courtesy of New Castle County Realtor Tucker Robbins.

Most sellers have been advised to be aware of the importance of curb appeal in heightening the interest of potential buyers.  To that end, they keep the lawn mowed and bushes trimmed.  They also adorn the outside entrance way with colorful potted flowers, updated light fixtures and hardware, and a freshly-painted door—all invitations to potential buyers to go inside.

An effective selling strategy, of course, but the invitations and positive impressions need to continue when prospective buyers actually come into your home.  Be it large, small, or cleverly created, the interior entryway to your house serves as the transition from outdoors to indoors and can set the tone and expectations for the rest of the home.

Some tips to creating a welcoming and attractive foyer or hallway include the following:

• Use one piece of size-appropriate furniture to anchor the space (and possibly provide room for storage).  Think desk, chest, bookcase, etagere, bench, or comfortable chair, e.g.  Consider function as well as appearance.
   
• Stress neatness.  Not only does an entryway set the tone of a home, but it can also keep the rest of your home tidy.  Attaching attractive hooks or other hardware to the wall next to the doorway can be an excellent place to hang coats, purses, bags, and keys.  A coat rack and umbrella stand can also be useful items.
   
• Utilize color to introduce the style of your home and/or to make a statement.  Some designers recommend using bright (red) or dark (chocolate brown) hues to mask the dimensions of a small space.  Others favor neutral shades such as grey, ecru, or white to make the furnishings the central focus.  Still others promote the use of yellow to add light or shades of green to bring the outside in.
   
• Be aware of lighting and size proportion.  Include a table lamp or sconces—even a chandelier if the area warrants it.  The addition of a mirror helps to reflect light and expand the space.
   
• Utilize accessories tastefully.   Add a colorful area rug, a favorite painting or poster, and plants, perhaps even a ficus or palm tree if space permits. Display a few pieces from one of your collections.  Include a variety of textures, shapes, and colors in your selections.  Remember that fresh flowers, in addition to pleasantly scenting the foyer, always send a welcoming message.to would-be buyers of your home.

Information courtesy of New Castle County Realtor Tucker Robbins.

If you are considering a divorce or are currently going though one, it is important that you learn as much as you can about divorce laws and how they can impact your real estate holdings.  To learn about those laws in Delaware, click here.

Although a divorce eventually involves the distribution of all of a couple’s assets, generally the most pressing issue (other than child custody) is the division of your real estate. To make this potentially complicated and emotion-laden process work as smoothly and civilly as possible,  consider the following suggestions to help combat volatile issues and strong feelings:

• Consult with your divorce attorney.  A well-crafted settlement agreement can help to avoid many types of disputes. The agreement should be quite detailed, including all potential issues that could arise during the sales process.  The agreement should ensure that the interests of both parties are aligned towards selling your real estate so that you both can move on with your lives.  Have the property sold or refinanced into one name, while all of the other details of the divorce are being negotiated.  Even if your divorce decree assigns possession of those assets to one party, or if one of you voluntarily transfers title to the other, the liability for the loan will remain for both if you do not sell or refinance the asset.
   
• Find a real estate agent who specializes in selling property for divorcing couples.  With divorce rates continuing to rise, many Realtors are beginning to market themselves as specialists in selling homes for couples who are divorcing.  These agents understand the complexities of a pending divorce case and will work with you on an individual basis.

Before you can decide how your real estate is to be divided, you must first determine its value.  If both parties are unable to agree on the current market value, there are several valuation methods that can be used, including current tax assessed value, request for a new appraisal, or an evaluation by a Realtor.  Determining equity in order to equitably divide assets is a complex process which can become quite complicated.  For more information about this topic, click here.

Information courtesy of Tucker Robbins, Wilmington DE Realtor.

Each year around 65% of all household moves take place between May and September, so obviously you need to plan ahead if you’re moving to a new home this summer.

While the act of relocating to a new place can certainly be exciting, there are, of course, challenges to be met, especially during a hot, busy summer season.  Although there are no foolproof ways to make the experience totally stress-free, there are, thankfully, actions you can take to make your “adventure” a more positive one.

Sage advice to heed includes:

• Plan ahead!  Contact moving companies or truck rental firms at least six weeks in advance if possible. Try to schedule your move for a weekday and at a time when traffic is less heavy. Make prior arrangements for the care of young children and pets on moving day—for their sake and yours!  Line up commitments from friends and family if you’ll need their assistance for the move.
   
• Be strategic about packing.  Gather necessary supplies and start packing early.  Whether it’s one room, one cabinet, or a drawer at a time, weed through what may be years of accumulation.  Decide what to donate to charity, give to a friend, recycle, trash, pack now, or keep handy until moving day.  Label boxes as to contents and intended room in the new home.
   
• Take care of logistics in advance.  Ideally, you should contact your future utilities provider at least two weeks before you move regarding turning on your electricity, gas, phone, cable, and internet before your arrival, if possible.  Contact any new school for a list of documents needed for registration.  Do not pack these materials away it’s better to hand carry them for easy retrieval.  If you’re going to need to spend a night in a hotel, make those arrangements early.
   
• Make life simple.  Keep all small parts labeled, in plastic bags, and all together in one box.  Likewise, take pictures of electronic hook-ups for future use.
   
• Consider the heat.  Dress appropriately, stay hydrated, and refrain from placing certain items in a hot truck—candles or wine, e.g.  Click here for tips on packing cleaning products and toxins.
   
• Stay calm.  Relax, whistle, smile, and anticipate the pleasure of living in your new home. 

Information courtesy of New Castle County Realtor Tucker Robbins.

The New Castle County real estate market was HOT in March 2015 with sales and home prices increases in the double digits. Here's the detailed info...

Information courtesy of  New Castle County Realtor Tucker Robbins, Berkshire Hathaway HomeServices.

Not to be confused with homeowner’s insurance, which covers the structure and contents of your  home, a warranty service contract is designed to cover systems and appliances that stop working due to normal usage.  Basic coverage generally includes the repair and replacement of major appliances such as heating/cooling system, water heater, refrigerator, dishwasher, stove, etc.  Plumbing and electrical systems are also usually covered, and some companies include washer, drier, microwave, and roof maintenance in the basic tier.

Gaining in popularity with both buyers and sellers, warranty service contracts serve to reassure owners that they won’t face major repair/replacement costs.  Sellers use them to protect the home while it’s on the market and as an incentive to attract buyers.  Buyers rely on them to protect them from unexpected and expensive repairs.  Even Freddie Mac will offer a $500 home warranty credit to home buyers who purchase a qualified, foreclosed single-family home, townhouse, or condominium through their HomeSteps® division.

A warranty plan is fairly inexpensive, typically ranging from $250 to $400, depending on coverage. The policy is prepaid for a year in advance, at which time it expires or can be renewed.  The usual procedure for service needs is as follows:

• If a home system or appliance breaks or stops working, the home owner calls the home warranty company.
• The home warranty company calls a provider with which it has a business arrangement.
• The specific provider calls the home owner to make an appointment.
• The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.
• The home owner pays a small trade service fee (less than $100) for each service call.

Most home warranty companies offer a variety of plans, each providing different levels of coverage, so be sure to read the details of any contract before buying. If you choose to renew the contract from year-to-year, double-check the details of your plan each time since coverage can change annually.

According to the Service Contract Industry Council, 32 states require home warranty companies to register or obtain a license with that state's department of insurance and comply with applicable laws and financial standards. Membership lists are available at their website.

Information courtesy of Wilmington DE Real Estate Expert Tucker Robbins.

For much of the country, winter woes are forgotten as the literal “greening of America” begins, and warmer weather, blossoming trees, chirping birds, and colorful flowers signal a time of rebirth and renewal.  Life is good…

…and demanding.  Spring requires much of a homeowner, and home maintenance checklists remind the often-harried proprietor  that it’s time to inspect the roof, repair the deck, check for cracks in concrete, repaint exterior trim, recondition lawn mowers, grills, and garden tools, and refurbish outdoor furniture.

Not quite ready to tackle such large, time-consuming chores?  Consider, then, easing into the requisite activities by initially taking on smaller, non-time-consuming tasks that generate a feeling of accomplishment while providing a gradual transition into the big jobs.

Granted, the majority of these items are for the interior of your home, but they’re important, too, and a far cry from the annual rug-beating, wall-scouring spring cleaning of yesteryear.

A sample of the” start-off-small” responsibilities includes the following:

• Shut off the water to the washing machine, remove the water supply hoses and examine them and the washers. Replace worn and damaged ones.
• Dust ceiling fan blades.
• Change or washing bathroom shower curtain liners.
• Test the pressure and temperature relief valve on the water heater by opening it and allowing some water to flow out. If little or no water flows out or it doesn't shut off, replace it. Bad valves can cause explosions.
• Clean the garbage disposal. Grind two trays of ice cubes made from a mixture of one cup white vinegar to one gallon of water.
• Check fire extinguishers to make sure they are not outdated, have lost pressure, or are damaged.
• Move throw rugs, mats, and area carpets and clean underneath them.
• Remove mineral deposits from faucets and shower heads.
• Thoroughly clean the refrigerator—one section at a time.  After six or seven mini-sessions, the entire job will be complete.

Finished?  Ready to take on tasks requiring a bit more time, know-how, and energy but guaranteed to bring peace of mind and the satisfaction of knowing your home is well-maintained?  Check out Princeton Online for monthly suggestions.

Information courtesy of Wilmington De Realtor Tucker Robbins.

It's the time of year when Americans gather their financial documents and anxiously await news of a tax refund or debt. While many hope to get money back, Time Magazine recently reported that the IRS paid an estimated $5 billion plus in false tax refunds in 2013, and according to Bloomberg Business that number could potentially grow to $21 billion by 2017.

"Technology has changed the way we live, offering consumers more convenient ways to take care of common activities like filing taxes," says Jean Vernor, senior vice president at MetLife. "However, taxpayers should be aware that these technological advances have also made it easier for criminals to commit identity theft. Consumers need to be aware of how and where they divulge personal information and take steps to monitor the data that must be shared."

Identity thieves commonly use a person's real Social Security number to claim fraudulent wages and file taxes, accepting that individual's deserved refund. Taxpayers bear responsibility for accuracy of submitted tax returns, regardless of whether the return was prepared by an individual taxpayer or a tax preparer. Unfortunately for many, this means spending a lot of time and money to rectify the situation and minimize the long-term effects caused by identity theft.

Avoid the scams

Criminals use an array of tactics to steal personal information and file a false tax return. Know the common scams and take steps to avoid them.

• Phone scams: The IRS reports that 2015 has seen a surge in phone scams from criminals impersonating authorities to obtain personal information. Phone scams are often aggressive and may threaten police arrest, deportation and license revocation, among other things, in order to scare victims into handing over information. Do not entertain a conversation with a hostile "IRS representative" and hang up immediately if the call seems suspicious.
• Phishing: As daily activities continue to move online, cybercriminals are finding ways to take advantage of the Internet. Criminals may send consumers fake emails or to websites that look official, but are really designed to steal personal information. The IRS will not send taxpayers emails about bills, refunds or personal information and following insecure links from these sources may lead to identity theft.
• Return preparer fraud: The IRS reports that about 60 percent of taxpayers seek assistance when submitting their taxes, but some tax preparers are actually criminals in disguise. Never sign a blank tax form and avoid tax preparers who claim they can deliver a higher refund than others. Choose a well-known tax preparer and ensure that he or she will be available even after the return is filed to answer outstanding questions. (BPT)

Information courtesy of New Castle County Realtor Tucker Robbins, Berkshire Hathaway HomeServices.

New listings in New Castle County increased 6.36% in February compared to February 2014. The average sales price increased 7.30% compared to Feb 2014 and homes were on the market an average of 82 days.

Information courtesy of New Castle County Realtor Tucker Robbins, Berkshire Hathaway HomeServices.