Please – don’t rely on Zillow!

It can be fun to go to Zillow and check to see what they say your Tamaqua home is worth in today’s market. It can also be fun to check and see what they have to say about a Tamaqua house you’re considering as a purchase.

 

But please – be aware that their numbers are only somewhere within a very large ballpark. Their Zestimates can be as much as 30% off – one way or the other.

How can they be so far off?

Easily – because they don’t know the difference between neighborhoods and they have never been in the home.

 

You know that there are huge differences in value between neighborhoods – even those that are geographically near each other. It might be the school district or it might be the general upkeep of the other homes nearby, but there can be tens of thousands of dollars difference between homes of a similar size and age in two neighborhoods just a half mile apart.

 

Similarly, the difference between a house that has had careful maintenance is worth more than one that has had none. And… a house with recent updates and expensive finishes is worth much more than one with plywood floors and 1960’s appliances.

 

Zillow doesn’t know which has which, so all Tamaqua homes of a similar size get lumped together for averages.

 

The inaccuracy of Zillow Zestimates has become such a problem that one homeowner has sued them for putting a roadblock in her efforts to sell her home. They undervalued it, so buyers hesitated to make market value offers. Indications are that this may become a class-action suit.

 

In other cases, sellers see a 20 or 30% over-valued estimate on Zillow and insist on an unrealistic price – causing their homes to sit on the market unsold.

 

If you want to know the true value of your home, call your real estate professional and ask for a market analysis.

We know the market here in Tamaqua and we know the difference between values in various neighborhoods. We’ve also been inside the homes we use for comparison, so we won’t compare a home that was updated in 2017 with one that was last updated in 1990.

 

The bottom line: Zillow is a toy, not a tool. If you want accuracy, call your agent. 

How to destroy your chances of owning a new Tamaqua home

No – you don’t want to destroy your chances of owning a new home here in Tamaqua, but so many would-be homeowners do it each year that it seems like a good idea to mention just how they go about it.

 

Here’s one couple’s story:

 

Mr. & Mrs. Smith had been married for several years and dreamed of moving out of their apartment and into a home of their own. They were tired of living by the landlord’s rules. They wanted a buy a puppy. They wanted to hang some family photos. They really wanted to stop living with that ugly mustard-colored paint in the living room.

 

So, they worked on their credit, being careful to pay every bill on time, pay down their credit cards, and put a few dollars in the bank.

 

When they thought they were ready, they went to see a lender and learned about the programs available with the down payment they’d saved. They found out how much they could spend on a house under the interest rate the lender offered.

 

All was well. They were pre-approved for a mortgage loan and they went shopping. After some trial and error, they got an offer accepted and were well on their way. The inspection report came back fine, as did the appraisal.

 

They were one week from closing, and then…

 

They decided that they could afford a monthly payment on new furniture for the new house, so they went shopping. And that was the end of the dream.

 

When the lender re-checked their credit the day before closing, there was a new account, with $4,000 in charges and a new $200 per month payment. The loan was denied.

That’s just one way that would-be homeowners “kill” their loans at the last minute.

You can also do it by:

• Making any large purchase – as many have learned after buying a car.
• Making application for a new credit card.
• Going on a spending spree with a current credit card.
• Signing up for a new cell phone.
• Emptying out a savings or retirement account.
• Using a current credit card to reserve an airline ticket, rental car, or hotel room.
• Quitting a job or changing jobs.
• Co-signing a loan for a friend or family member.
• Forgetting to pay a bill on time.
• Letting a retailer, car dealer, or ANYONE access your credit report, even if you don't make a purchase. *Hint: You can "window-shop," but DON'T give out your social security number.

The moral of this story: When your lender and your real estate agent tell you not to do anything to change your financial picture before closing – pay attention!

 

If you're not sure whether some action will harm you, ask your lender before you do it.

Do you really need that home inspection?

Tamaqua home buyers on a budget are often tempted to skip the home inspection. Either they’ve looked the house over carefully themselves and see nothing wrong or it’s a new house and they assume that all will be well.

 

Unfortunately, that’s not enough. Saying “no” to the inspection on your new Tamaqua home is a false economy that could cost thousands.

 

The problems that could be hiding behind the walls, in the attic, or in a crawl space  could cost far more than a few hundred dollars for a home inspection.

 

A home inspector will look at all of it. He or she will test the electrical outlets, check the water pressure, test to see that the furnace and air conditioner are working properly, check any appliances that will stay with the house, and then begin looking behind the scenes.

 

Home inspectors are trained to notice where there has been water damage that may have been repaired or may have been covered up. Then they investigate.

 

Home inspectors go up into attics to see that all the vent connections are secure and that the insulation is adequate. They’ll also look for insect infestations and mold.

Then they go under the house looking for the same kinds of problems.

 

Inspectors find things that you might never dream of. For instance, one inspector found the shut-off valve for a hot water tank wedged behind a newly installed furnace – in a spot where it could not be reached without removing the furnace.

 

An inspector will also alert the buyer to safety hazards such as a loose deck railing, missing GFI outlets in kitchen or bath, or an inadequate electrical panel.

 

New construction isn’t immune to problems.

Even honest, conscientious contractors can run into problems if they get in a hurry or trust a subcontractor who got in a hurry. For instance, in one home the light fixture over the kitchen island didn’t work – and the homeowner assumed it was a faulty light fixture. No – it simply had never been connected to electricity.

 

Home inspectors don’t make such assumptions – they investigate and find the answers.  

 

Do some inspectors go overboard with “nit-picking?”

Sure, some do. But you and your agent can go over the report with the inspector and learn which issues are trivial and which need attention before you finalize that Tamaqua home purchase.

 

One more thing…

If you’re about to put your home on the market, it can’t hurt to have your own inspection done. Then you can address problems in advance and avoid delays that could cost you a sale.

 

Call me – I’ll be happy to refer you to a few excellent Tamaqua home inspectors who will be glad to alert you to any repairs that should be completed before you list your home.  

Are you still renting your home in Tamaqua?

 

If so, have you considered the disadvantages and the dangers?

 

You already know some of the disadvantages:

• You can’t repaint to suit your taste – you might not even be allowed to hang a picture.
• You have rules to live by – things like not owning a dog or cat; not being able to put up a basketball hoop for the kids; not making any noise after a certain time of night; not being able to let visitors park a motor home out front if they come to visit; or not being able to park your own boat or RV at your home.
• If you’re in a house, there’s no sense in planting shrubs or perennials because they won’t belong to you. If you’d like to have a vegetable garden, it may or may not be allowed.

How about the dangers?

• Supply and demand dictates rental prices, so the next time you renew your lease or rental agreement, the monthly price may be higher.
• You have no assurance that your lease will be renewed – the landlord’s children might want that space.
• You could be evicted because the landlord is insolvent. With so many people in financial difficulty today, it’s not impossible that your own landlord might be one of them. That house or apartment could be repossessed right out from under you.
• You could be evicted because the house or apartment building has been sold.

Why not consider owning your own home?

Yes, that does come with disadvantages:

• You’ll be responsible for all upkeep.
• If something needs repair, it will be up to you.
• If you decide to move to another community, it could take a little time to sell the house.

But it comes with better advantages:

• Being master of your own space – doing as you please, decorating as you please, owning pets if you please, etc.
• Resting easy knowing no one can tell you to leave – unless you fail to make the payments, of course.
• Knowing that if you’ve obtained a fixed rate mortgage, the only way your payments will go up is if property tax or insurance rates rise.

I’d be glad to meet with you and show you homes here in Tamaqua that are available for the same monthly payment that you’re now paying in rent. I can also introduce you to lenders who will help you even if you’ve had financial difficulties in the past or are short on down payment funds.

 

So call – in a few weeks you could be a happy homeowner.

Planning to sell your Tamaqua home? Start gathering this information.

Today’s Tamaqua home buyers have plenty of questions, and if you’re like most of us, it could take you a bit of time to find the answers.

 

For instance: “When was the furnace installed, and is it still under warranty?” Unless it was installed within the past year or so, you probably don’t remember. And unless you keep an organized file for such information, you may need to do a search.

 

Since people will want to know, go ahead and get that information gathered now. Think about the furnace, the air conditioner, the water heater, any appliances that will convey with the house, and even your roofing and siding.

 

Next, gather up your utility bills for the past year, because buyers will want to know the average costs. Think of heating fuel and electricity, plus fees for water, sewer, cable TV, and garbage collection. If you’ve installed any energy-saving features, such as LED light fixtures, be sure to let your agent know.

 

They’ll also want to know what you pay for homeowner’s insurance, and whether that policy could be transferred to them. Are you paying an additional premium due to location – or due to the presence of a dog or an above-ground pool that will be removed? Be sure to point out those facts.

 

If you’re covered by a Homeowners’ Association, get a copy of the bylaws and fees.

 

What about property taxes? Your agent will access public records, but do take time to make sure those records are accurate. Do they include special assessments that will expire in a few years? Do they reflect exemptions that a new homeowner might not be allowed?

 

You know you’ll be filling out a property disclosure form, so think back over any repairs or alterations you’ve made. If repairs were of a serious nature, such as a water leak in the roof or the foundation, gather documentation to show that those repairs were made.

 

If you’ve made alterations to the house that required a permit, make copies of the permit(s) to give to your agent for documentation. And… if you were supposed to get a permit but didn’t, warn your agent so he or she can begin helping you solve that issue.

 

Gathering all of this information now will save you time and stress later, so have it ready to hand to your Tamaqua real estate agent the same day that you sign the listing agreement.