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May 23, 2018

Be Careful…You Might Just Get What You Pay For

Filed under: Center City Real Estate,For Buyers,Of Interest to Buyers — Center City Philadelphia Real Estate Agent @ 2:13 pm

There are two key distinctions that every buyer should know when purchasing insurance for their Philadelphia condo or home: “replacement cost” versus “market value.”  Here is some helpful info from our friends at Trident Insurance Agency:

Replacement Cost vs. Market Value
Replacement Cost and Market Value are two different things, and it’s important to understand both when you’re a homeowner. The former impacts your home insurance policy, while the latter comes into play when you put your home on the market.

Market Value
Your home’s market value is the amount for which it would sell in the current marketplace in its current condition. Market value changes and can be difficult to predict, but it’s based on your home’s location, internal and external characteristics, and how the homes are selling in that area.

In most cases, it’s not a good idea to insure your home based on its market value. Your home’s market value might not cover the cost of rebuilding if your house is destroyed by fire or another disaster. Materials and labor may cost more now than when it was built, and special features could be more expensive to replace.

Replacement Cost
This is how much it would cost to rebuild – or replace – your home if it were completely destroyed.

Why is this figure important? It’s how much you should insure your home for. Replacement cost, or reconstruction cost, coverage insures your home for the cost to repair damage to your home or rebuild it completely at equal quality — at current prices.

Replacement cost calculations can vary depending on the home insurance company you’re working with, but it typically covers plans and permits, labor and materials, and fees and taxes. Land value is not included in replacement value, as it does not factor into the cost to rebuild a structure. Keep in mind that costs for these things at the time of your appraisal will affect your replacement cost value. If supply and demand change, those costs may have increased significantly at the time you actually need them.

Insuring Your Home
You should insure your home based on its replacement cost, not its market value, as the cost of building a home often exceeds its market value. Because it is difficult to predict the future, it’s important to choose a policy to help account for unforeseen circumstances — and to regularly review your home’s current replacement cost in case you need to update your coverage.

Updating Your Policy
Remodeling your home will affect its replacement value, so it’s a good idea to review and update your homeowners’ insurance policy after remodeling. Be aware of fluctuating costs of labor and materials in your area so you can update your replacement cost as necessary. Review your policy annually and update it to reflect any changes in replacement value.  (Info provided by Safeco Insurance Company)

If you need help finding the best homeowner’s insurance coverage to fit your needs, email Jessica.Nydick@FoxRoach.com

Fox & Roach / The Trident Group LP
A HomeServices of America, Inc Company and a Berkshire Hathaway Affiliate

• • •

May 16, 2018

How Much Waiting to Buy Can Cost You

Filed under: For Buyers,Of Interest to Buyers,Real Estate: Condominiums,State of Marketplace — Center City Philadelphia Real Estate Agent @ 4:26 pm

By now you know the Fed has raised interest rates three times already this year. The forecast is that we will have a few more bumps upward in 2018 and early 2019.

Our friends at Trident Mortgage shared this fancy chart with us to show just how much you could save over the life of your loan by locking in at a lower rate now.

Here is the scoop on rates this week:

Conventional Loan with a 30 Year Fixed – 4.625% (4.71 APR) – 60 day lock – 0 Points
FHA/VA Loan – 4.5% (4.91 APR) – 60 day lock – 0 Points
Jumbo Loan ($453,100+) – 4.375%  (4.43 APR) – 60 day lock – 0 Points

Conventional ARMS
7/1 – 4.0% (4.09 APR)
5/1 – 3.75% (3.82 APR)

Jumbo ($424,100+) ARMS
7/1 – 4.0% (4.08 APR)
5/1 – 3.875% (3.93 APR)

If you are sittin’ on the fence, now is a good time to hop off, lock in that rate, and make an offer on that Philly condo you have been considering…

Mark Wade
BHHS Fox & Roach Realtors
530 Walnut St. | Phila., PA 19106
www.CenterCityCondos.com

• • •

May 1, 2018

The Top Things I Really Dislike About Center City Real Estate

Filed under: For Buyers,For Sellers,General Real Estate,State of Marketplace — Center City Philadelphia Real Estate Agent @ 1:21 pm

I’ve been selling Philly Real Estate for 29 years… so yeah, I’m going to vent…especially when I come across the following:

1) When the MLS says the unit has parking, only to discover that it really doesn’t and the seller is giving “one-year free rental parking.”

2) Late Sunday afternoon appointments…in the rain.

3) “Fact” Sheets about condos that are anything but facts.

4) Poor common area maintenance in any given Philly condo building. Nothing kills value better than a building that is not kept up!

5) Buyers that have never stepped foot in Philadelphia, but know more about the Center City condo market than I do.

6) Being late for an appointment- be it a buyer, a seller, or another agent. I just don’t get it. And if I’m the late party, then it really doesn’t matter because hell just froze over.

7) Suburban agents who drag my butt to the suburbs to settle on a condo in Center City. No offense, but I’m not interested in a drive to Havermore…or wherever.

Mark Wade
www.CenterCityCondos.com
BHHS Fox & Roach Realtors
Mark@CenterCity.com | 215.521.1523

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530 Walnut Street, Suite 480
Philadelphia, PA 19106
Direct: 215.521.1523 ~ Office: 215.627.6005
Fax: 215.627.3142
Email: Mark@CenterCity.com
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