Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Watch Out - Lehigh Valley School Tax Hikes

In the past week, Bethlehem and Allentown have both released news about possible school tax hikes.

Allentown is contemplating an 8% tax hike or an increase of 3.435 mils for a total of 46.377 mils. State law prohibits increasing the Allentown tax rate by more than 5% without filing for a referendum exception. The Allentown school district is still reviewing all the numbers in order to determine how to proceed.

Bethlehem is considering a 4.1% increase or an increase of 1.5 mils. This is the largest increase Bethlehem is allowed without getting into the same problem as Allentown (needing a referendum due to state law).

Moore Township is experiencing some financial problems and is considering doubling the township tax rate from 1 mil to 2 mils.

The above is just some of the highlights. Take into account that a rumor is going around that Lehigh County is considering a property re-assement and pushing Northampton County to do the same the only guarantee is that your property taxes will be going up. It is just a matter of how much.

 

Bethlehem Awarded Casino on Steel Site

Well, after a few years of wondering where the Lehigh Valley's slot machine casino was going to be developed the decision was made on Wednesday and Bethlehem was awarded the one available license.

For the past few years, Allentown and Bethlehem were in heavy competition to get the only license that was going to be issued (state law says only one license can be issued within a 20 mile radius). Both cities had valid arguments why they should be the one given the license.

Bethlehem, with its acres of run-down Bethlehem Steel properties wanted the license to develop all of that run-down area into a thriving retail area. Allentown's proposal was for a vacant area located near Agere Systems but claimed they needed the revenue more than Bethlehem. The licensing board was  not able to find anything that stated hardship justified the licensing.

The new Bethlehem casino is scheduled to be opened in mid-2008 and will have 3000 slot machines. It is expected to create more than 2000 jobs and generate more than 347 million in revenue. Along with the Casino, many of the old Bethlehem Steel buildings will be renovated.

What does this mean for the future of Bethlehem? The answer is unknown. The casino will be located in the southside of Bethlehem close to Lehigh University. This is an area of Bethlehem that has been in need of something but is a casino the answer?

Today, a homeowner in Bethlehem Township asked me how it is going to affect him. I truly don't believe it will affect Township owners except with possibly an increase in needed housing for the future casino employees. Although the city of Bethlehem and Bethlehem Township abut each other, they are two distinct municipalities and most of Bethlehem Township is adjacent to North Bethlehem.

I believe that the Casino will have the most impact on the Southside of Bethlehem. Will home sales in that area increase or decrease in value? Will it become a haven for boozers and gamblers as some suggest or reap the benefits of the increased revenue?  I guess time will tell!

"Helping Those Who Serve" Homeownership Program!

Long & Foster has created the "Helping Those Who Serve" Homeownership program. This beneficial program was created to help vital public servants buy their first home. These very special members of the community include: state and local police, firefighters, military, school teachers, and certified health care providers.

What are the features and benefits of this program?

By using a Long & Foster real estate agent who will spearhead and coordinate the program for the public servant, and by obtaining an advantageous mortgage from Prosperity Mortgage, homeowners insurance from Long & Foster Insurance, and Long & Foster settlement services the homebuyer will get:

• A certificate worth $500 credit at closing
• Up to 100% financing
• Flexible credit guidelines
• Lenient credit standards
• Expanded qualifying ratios up to 50%
• Discounts on a variety of Home Service Connections vendor services for moving and storage
• Special home warranty pricing

If this program interests you contact me today!

New Years Eve First Night in Bethlehem PA!

December 31, 2006 is First Night in Bethlehem PA. Throughout the city there is multiple entertainment venues. You can see bands, jugglers, clowns and magic shows. It is a great way to spend the day and night in Lehigh Valley with your family.

To access the events, you need a First Night button. These can be purchased at multiple stores throughout the city. These buttons can also be purchased at the venues. The complete First Night schedule of events is available here.

Easton Planners Approve Proposal for Townhouse Complex

The Easton Planning Commission approved a preliminary plan last week for Ashley Development Corp. of Bethlehem to build a townhouse complex.  The 74-unit development will be at the former Lincoln Textile Products Co. site on Easton's South Side at Philadelphia Road and St. John Street, just north of Interstate 78 in Williams Township.

Ashley proposes to demolish the Lincoln Textile warehouse and construct 37 buildings with two, two-story townhouses in each unit. The unit on each first floor would have two bedrooms, and each second-floor unit three bedrooms. Source:  The Morning Call – 12/12/06

New Tax Deduction Will Make Lehigh Valley Housing More Affordable!

A new tax law taking affect next year allows the home buyer to deduct premiums for PMI insurance (private and government mortgage insurance) from their federal taxes. The deduction is available for any households having a total annual income of $100,000 or less.

PMI kicks in when you need to borrow greater than 80% of the purchase price (you don't have 20% to put down on the house). The monthly PMI payment also varies dependent on your credit score. The lower the score, the greater the risk, the higher the PMI payment.  PMI is included in your debt ratio and can have an impact on the loan.

This new tax law will now allow you to deduct this insurance premium. Make sure to check with your tax professional.

MICA (Mortgage Insurance Companies of America) has a press release about the new law.

Don't Lehigh Valley Home Sellers Understand?

Today, I was making arrangements to take a potential home buyer out to look at a set of houses. Out of the 45 houses that seemed like possibilities, we narrowed the list down to 7. I then started making the appointments to go view the houses giving the standard 24 hour notice.

I ran into two problems with the home sellers. With the first one, the home owner had to be there since there was no lockbox on the property. (the lockbox allows agents to access a key to one of the doors)

With the other property, they had set times that showings were allowed. No showings were allowed until later in the day...way too late to accommodate the possible buyer.

Both of these scenarios hurt the home seller.

As inconvenient as it is, access to the property for sale should be as easy as possible. Home buyers sometimes call on the spur of a moment and want to see a property as soon as possible. I feel 24 hours notice is acceptable with even the most spontaneous buyer. A home seller who stipulates showing conditions risks the chance that the buyer will see and purchase another property and never reschedule the showing.

Only once, have I sold a home when the home seller was present. The owner was not there for the first showing. On the second showing, the seller and buyer hit it off and things went very smooth.

For the most part, what I typically see is that both the home seller and the home buyer put up a wall. The home seller sometimes attempts to pitch the sale of the house. "This house is the only house in the neighborhood with $100.00 nails."

Also, home sellers can disclose information that will hurt the sale. About a year ago, a home seller made comments that turned out to be untrue. As a result, the buyer backed out because if the seller "lied" about that what else did they lie about.

Home Buying can be very emotional. When the home seller intervenes, I believe it can hurt more then help. Home Sellers need to give buyers the room they need to make one of the largest financial decisions in their life.

Time Equals Money

With rates at a 10 month low, Terri Volini, from Prosperity Mortgage, provided me with the following table comparing the difference in payments between a 6.375% mortgage versus a 7.000% mortgage over a 10 year period.

The table also shows how much you'll save over a 10 year period and the difference in the monthly payments between the two percentages.

 

Triple Play - Real Estate Convention

Today, I was in Atlantic City NJ at the Triple Play REALTOR Convention and Expo. The convention is a great way to see what is new and cool in the world of real estate.

For Home Buyers and Home Sellers, the emphasis was on providing more information via the internet.

There were multiple companies providing Virtual Tour technology. Virtual Tours provide a 360 degree picture of the property and depending on the technology may allow a user to simulate walking through the house (ref: 360 Degree Virtual Tours!).

Another popular item was website providers of unique domain names for the property listing (i.e. www.145FrontStreet.com). The domain name is used on all marketing material and makes it easy for a potential buyer to get information about the house.

I ended up with multiple versions of the most popular item. The stressball <grin>.

Condo versus Townhouse - What's the Difference?

A Condo is dependent on ownership. If you own a Condo you own a share in the community. Everything outside of the interior of the house is owned by all of the community members and the members have to approve any changes.

The LVAR MLS lists a Condo deed ownership as being: Fee with HOA (Home Owner Association).

A Townhouse is a style of house. Townhouse ownership may be Fee with HOA or Fee Simple.

If ownership is Fee Simple, you own the interior and exterior. If it is Fee with HOA, ownership is part of a Condominium Assocation.

What makes things confusing is that a Townhouse that has Fee Simple ownership (so it's not a Condo) may be part of a PUD (Planned Urban Development) Community. The PUD with it's rules and regulations and possible monthly charges...things very similar to a Condo...gives the appearance that you are purchasing a Condo.

In each case, the PA Agreement of Sale has a section to protect the buyers and sellers. The seller is required to obtain a Certificate of Resale (if a Condo) or the PUD (if applicable) plus all other pertinent docs. The buyer has the ability to walk away from the sale if any of these are not provided in the required time period.