Real Estate Information

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.

Wilmington DE Home for Sale:

101 Lastrada Lane, Wilmington DE
MLS# 6542031

Lovingly Cared For!

Beautiful home in much sought after neighborhood! Lovingly cared for by original owner and it shows! Walk in to two story foyer with skylights. Entertaining dream is awaiting with this huge living and dining room featuring cathedral ceiling, hardwood floors, large windows flanking wood burning fireplace, and two sliding doors out to deck. Open kitchen and family room. Kitchen features plenty of cabinets, island, skylights, built in shelving, and huge pantry/laundry room. Eat in area between the kitchen and family room. Warm and inviting family room with stone fireplace and cathedral ceiling. Three sliding doors off kitchen and family room to deck. First floor master suite with two walk in closets and luxurious private bath. Upstairs landing with alcove for study/den. Three additional bedrooms upstairs. One bedroom with private bath and a Jack and Jill bathroom divides the other two bedrooms. Lower level has a climate controlled wine room and plenty of room for storage or game rooms. Minutes away from shopping, restaurants, and schools. Put this on your must have list for spring!

Marketed by Wilmintgon DE Realtors The Robbins Team.

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.

Landscaping can add tens of thousands of dollars to the value of your property. In fact, it is one of the few home improvements that not only adds value immediately, but also increases in value as the years go by. Although the term is typically associated with lawns, trees, bushes, and flowers, items such as fire pits, decks, patios, waterfalls, stone walls, gazebos, arbors, and outdoor lighting can also add to your landscape design and increase the value of your home by as much as 7% to 15%.

Research has found that the number-one thing that buyers are looking for in landscaping is a sophisticated design. Close behind is plant size and maturity. A lesser factor, but one still worth considering, is the diversity of plant life within the landscaping design.

Landscaping gurus offer the following advice for your yard:

• Have a coherent plan/design before you begin.  Consider factors such as use, cost, climate, color, ecological advantages, environmental effectiveness, variety, and maintenance.  Scour the Web for landscaping ideas and sample designs, consult with professionals in the field, peruse magazine articles, and/or check out what your neighbors have done to enhance their yards.
   
• Avoid common landscaping mistakes.  Don’t plants tress in tight spaces--or too close to your house--or introduce invasive plants because both will result in expensive removal labor eventually. It is also important to heed the information re: watering, sunlight, soil, and climate needs of the plants you purchase.
   
• Perform regular yard maintenance.  Mow, edge, prune, trim, weed, and mulch as needed to keep your curb appeal at its best.  According to the Appraisal Institute, a home with lackluster or overgrown landscaping will likely be unappealing to both prospective buyers and an appraiser and could definitely affect the home’s potential resale value in a negative way.
   
• Add a splash of color.  Plant a border of bright blossoms. Dig a flowerbed by the mailbox and add some pansies. Place a brightly colored bench or Adirondack chair on the front porch and put colorful pots on the steps.  Select bushes and trees that will lend different hues to your overall design.

Information courtesy of Wilmington DE Realtor Tucker Robbins, Berkshire Hathaway HomeServices.

If you're looking to sell in today’s real estate market, you have most likely already read numerous articles advising you to set a realistic price, pay attention to curb appeal, thoroughly clean and de-clutter, remove large pieces of furniture, repaint in neutral colors, remove personal mementos, and the like.  All of this information is valid and useful, but there are other, less-publicized ways to appeal to potential buyers.  Read on for some creative tips on how to generate interest and get the best price possible.

1. Arrange for a pre-listing home inspection.  In addition to facilitating the sale of your home by reassuring potential buyers, an inspection helps you comply with full-disclosure real estate laws.  You can also have a termite inspection done.
    
2. Use online venues and your personal networks to market your house.  Put an ad on Craigslist, use sites like Zillow.com or Trulia.com, get your own URL with the house’s address, promote the house through social media like Facebook and Twitter, and send out a copy of your listing to people on your email list.  Sometimes word of mouth is one of the best ways to market a house.
    
3. Replace all brass fixtures.  Today’s buyers dislike this “cheap” look that may have been fashionable a couple of decades ago, but it has to go if it’s in your home today.  Switch out each light fixture, switch plate, door hinge, knob, and faucet with for ones with a modern oil-rubbed bronze or nickel finish.
    
4. Add power outlets with USB ports in rooms that lack them, especially in the kitchen, bathrooms, and bedrooms where they’re most needed.  Also, find a place for a wireless router for use with the Internet and flat-screen TVs.
    
5. Offer more unusual incentives.  Paying a buyer’s closing costs, taking care of HOA fees for the first year,  giving a “redecorating” credit, or providing a home warranty for a set time period have become almost expected perks, but you can consider landscaping services, personalized gift certificates (home supply store or a plant nursery, e.g.) or a flexible closing date.

• For equally effective, but more expensive buyer magnets, look into outfitting closets for extra storage (top contenders are an entry closet, a kitchen pantry, and a linen closet) or removing much-maligned “popcorn” ceilings.  Click here for DIY instructions or get estimates from a professional.

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

You probably already know that you can invest your IRA money in stocks and bonds and even in mutual funds if you so desire, but did you know that you can also invest those IRA funds in real estate?  Doing so, however, is a bit complicated, and IRS rules concerning such purchases must be followed to the letter.  

Usually, when you take money out of an individual retirement account before you reach age 59 1/2, the IRS considers these premature distributions. In addition to owing any tax that might be due on the money, you'll face a 10 percent penalty charge on the amount.  This is not the case, however, when you use the money to buy your first investment real estate.  (Note: Technically, you don't have to be purchasing your very first home or building. You qualify under the tax rules as long as you, or your spouse, didn't own a principal residence at any time during the previous two years.)  You can use up to $10,000 in IRA funds toward this purchase. If you're married, and you and your spouse are both first-time buyers, you can each pull from retirement accounts, giving you $20,000 to use.

The restrictions are many (and perhaps time-consuming) and include the following:

• You will need to find an IRS custodian who handles these investments (and the options are currently limited).  Generally banks and brokerage firms do not handle IRA distributions for real estate transactions.
   
• Only the custodian may handle your IRS funds.
   
• The type of property you buy must be for investment only and may not be used by you or by relatives. 
   
• All proceeds from the investment will go back into your IRA fund.  Likewise, however, all expenses must be paid from that fund, so you must have enough liquidity in your IRA to cover such costs.
   
• You must let the IRS know that you used the retirement money early for a tax-acceptable purpose by filing Form 5329.
   
• You must use the IRA funds within 120 days of withdrawal to pay qualified acquisition costs. This includes the costs of buying, building or rebuilding a home, along with any usual settlement, financing or closing costs.

The above information applies only to traditional IRSs.  To learn about the procedure for an Roth IRA, click here.

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

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

Buying or selling real estate is a complex procedure, so it’s important to select a competent, honest agent who will skillfully represent your best interests throughout the entire process.  As you begin your search for property or for a new owner of your home, keep your eyes and ears open.  Notice the names on real estate signs in your neighborhood, ask friends and relatives for referrals, attend open houses in your target area to meet the agent on duty, and check the real estate section of your community newspaper,

Once you have compiled a list of names, you will next want to determine if the person is a Realtor, agent, or broker.  A Realtor is someone who is licensed by the National Association of Realtors (NAR), is bound by a Code of Ethics, and has access to the Multiple Listing Service (MLS). 

As you prepare to interview the New Castle County real estate agents on your list, be sure to discuss the following topics:

• The price range of most of their transactions.  Some agents specialize in high-end properties and won't give their best effort on properties under a set value. If they usually deal in fixer-uppers, they may not have the experience to navigate "Millionaire's Row".
   
• Their familiarity with and experience in your target area.  If you're buying, a Realtor should be able to provide you with information on the community, the schools, taxes, traffic, nearby amenities .and other facts. If you're selling, you want your agent to be able to talk to prospective buyers about these details.
   
• The amount of time they can give you—and availability to meet at your convenience.  If you need someone on weekday evenings or can meet only in the morning, will the agent be able to accommodate you?
   
• What services can you expect from them? In addition to helping you buy or sell real estate, interviewing potential clients, previewing and showing property, discussing sales conditions, drawing up and presenting offers, holding open houses, and writing contracts—all the while meeting deadlines and hand-holding when necessary—you should also expect your agent to be current on marketing strategies, federal/state programs, and area real estate trends and comps.
   
• References from previous clients.  Listen to what their past customers have to say. Google their names, too, and check the state for any licensing or disciplinary information.

Information courtesy of New Castle County Real Estate Expert Tucker Robbins.