Archive for February, 2009

Philadelphia Home Buyers: Facts About Mold

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Photo by: Dr. David Midgley University of Sydney, Australia

Mold! Now What?

 

A while back I showed a home to my client. The home was a total renovation and my client was a first time homebuyer. He was really looking forward to seeing the house. The price was right, there was a tax abatement, and everything was new. We walked in, so far so good. As we walked further into the house there was this damp odor. As we walked down to the basement the odor got stronger and sure enough we saw it – MOLD – growing at the base of the wall. Needless to say my client wasn’t interested in that house anymore.

I think it’s important for people to understand the real story about mold. What it is, how to recognize it and most importantly, how to deal with it.

Molds occur naturally in our environment. They reproduce by means of tiny spores. When a person touches or inhales mold or mold spores, sensitive individuals may have an allergic reaction. It’s impossible to get rid of all mold and mold spores indoors; some mold spores will be found floating through the air and in house dust. The mold spores will not grow if moisture is not present. Controlling moisture reduces the threat of mold problems. A water leak or high humidity can lead to mold, mildew, or other biological growth. Depending on the severity, conditions can lead to rot, structural damage, premature paint failure, and a variety of health problems. Water can seep into your house from the outside through a leak in your roof, foundation, or small gaps around windows or doors. Water can also come from inside your house from a leaking water pipe, toilet, shower or bathtub. High indoor humidity caused by normal activities of everyday living such as showering, cooking, and drying clothes, can also be a source of mold, mildew or musty odors. Indoor humidity levels between 30% and 50% are ideal. For more information consult EPA’s Brief Guide to Mold in your home.

If there is mold growth in your home, you must clean it up and fix the water problem. If you clean up the mold, but don’t fix the water problem, then, most likely, the problem will come back. Stop water leaks immediately to minimize the potential mold growth. Increased ventilation and frequent cleaning helps to prevent mold from growing in areas where completely eliminating moisture is difficult, such as bathrooms. Use ventilation fans in kitchens and baths to control moisture. Check to make sure ventilation fans are venting directly outside. In some cases the vent fan may have been installed to vent into the attic or become disconnected or blocked.

How can you tell if it is mold?

Discoloration — Mold may be any color: black, white, red, orange, yellow, blue or violet. Dab a drop of household bleach onto a suspected spot. If the stain loses its color or disappears, it may be mold. If there is no change, it probably isn’t mold.

Smell/Odor — Sometimes molds are hidden and cannot be seen. A musty or earthy smell often indicates the presence of molds. But a smell may not be present for all molds. Even when you don’t notice a smell, wet spots, dampness or evidence of a water leak are indications of moisture problems and mold may follow.

When should you seek professional help?


**You may need professional help when:
**There is a lot of mold
**The home is very damp and moist
**Mold comes back after repeated cleaning
**A family member suffers from asthma or respiratory problems or other health problems that appear to be aggravated inside the  home.

If you are in the process of buying a home and you’re worried about a mold problem, ask your home inspector if he notices any dampness that you should be aware of. Where mold is already a problem, you must clean it up. Testing can be costly but is worth it if you have a concern. Qualified mold mitigation contractors can be very helpful in cleaning up mold problems and preventing costly damage and/or adverse health reactions. Be sure to get bids from two or three (or more) experienced mold mitigation contractors. Multiple bids will allow you to gain immediate perspective on a fair cost for quality mold mitigation. Mold remediation can be negotiated with the seller if it’s necessary.

Remember – your health and the health of your family is a very important part of home buying.

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carolyn perlow_author posted by carolyn       SEARCH the Philadelphia MLS. No Registration Required!

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Phila. Real Estate: 4th Quarter Housing Round-Up

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TREND is the Multiple Listing Service (MLS) for more than 32,000 real estate professionals in and around the Philadelphia metropolitan region. The report is a compilation of TREND data, government data and NAR (National Association of Realtors) analysis. The home sale statistics come from TREND, while the labor and industry data comes from government sources. All of the analysis is written by NAR economists. Complete 2008, 4th quarter report: Economic and Market Watch Report (pdf).

This information has been reprinted from the Economic and Market Watch Report with permission from TREND.

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Phila. Real Estate: Still a Strong Buyers Market
Phila. Real Estate: Market Data 2nd Q 2008
 

FIND YOUR 1st HOME IN PHILLY AND GET YOUR TAX CREDIT  

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Philly Mortgage Market View: Time to Refinance?

Time to Refinance? Here are the Reasons…

If there is any silver lining to the slow economy and housing market slump, it is that mortgage rates moved to their lowest levels in almost 50 years at the close of 2008. The slump in the real estate market has served to help move the economy into this recession and the government knows that the real estate market must lead us out of recession. Real estate is our most important industry. The government has acted to support the economy and real estate by bringing rates down to historically low levels. Now the question is—how can you take advantage of these lower rates?

If you are in the market to purchase a Philadelphia home, now may be the time. Home prices are down and so are rates. This combination makes ownership more affordable. But what if you already have a home and don’t want to move or purchase an investment property? Serious consideration should be made to refinance your mortgage.

Here are some goals of a refinance…

Lower your payment. Lower rates mean lower payments. A one percent drop in interest rate on a $300,000 mortgage can lower your payment approximately $200 monthly. Let’s say the cost of a refinance is $3,000. This means that you will have paid back the cost in 15 months and in 10 additional years; the “profit” would be $24,000. It should also be noted that these costs do not have to come “out-of-pocket” for many, especially if they have equity in their home.

Pay off your mortgage more quickly. With houses not appreciating as fast, many have realized that the road to retirement can still start with their homes. However, instead of maximum leverage, you can build equity through an accelerated payoff of your mortgage. In the previous example, the homeowner was able to achieve a lower payment of $200. The homeowner could also choose to keep their payment the same or even raise it slightly but opt for a 15-year to 20-year mortgage. What would the savings be on a 20-year mortgage? Let’s say your payment is $2,000 for principal and interest. The savings would be $240,000 over the 10 year period you are not making payments. A home can be a forced savings account!

Take cash out for other purposes. Even with lenders’ tighter guidelines there are still programs that will let you use the equity in your home, especially for those who have good credit. While it may make sense for some to use their home as a savings account to build-up equity, others would benefit from using their
equity for other purposes.

You could fund your retirement plan. If you can’t afford to make contributions to your retirement plan, you are missing out on the second most important tax advantage available to you, after ownership of a home.

You could consolidate debts. Your payment could be lowered even further by converting short-term debt into long-term mortgage debt. Let’s say you have $50,000 of consumer debt that is costing you $1,200 per month. Adding $50,000 to your mortgage at these low rates may lower the payments to approximately $300 monthly. There may be further savings because this new debt could be tax-deductible. Of course, spreading out the debt means you are making the payments over a longer period of time. But you could still invoke the strategy of reducing the term of the mortgage and save money in the long-run as well as the short-run.

You could fund home improvements. Another way of building equity is improving the value of the home. You could add a room, finish a basement or remodel the kitchen.

You could invest the proceeds of the equity.With lower stock and home prices, your financial advisor may help you decide that now is the time to make investments for your future.

You could move from an adjustable to a fixed rate. Many saw their payments rise during rate adjustments in the past few years. Adjustable mortgages can help you achieve lower payments in some eras, but they come at a risk of higher payments at other times. Lower rates represent the ideal time to convert an adjustable mortgage into secure fixed rate mortgage. This is especially true if you feel you will be staying in your home for a long time or keeping the home as a rental property if and when you move.

There are plenty of reasons to refinance and record low rates make the timing right for many. Please contact me to determine if you qualify and for what rate based upon your credit score. I could even help you boost your score.

APPLY FOR A MORTGAGE ONLINE

Brought to you by our favorite mortgage broker:

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Carina Marchese
Center City Mortgage
267.238.5785

email Carina
email Carina for today’s rate

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Philadelphia Home Buyers: Facts About Radon

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Radon is a problem a lot of Philadelphians think they don’t have to worry about. Unfortunately that is not true. Radon can be a problem and I can only recommend that buyers get their prospective home radon tested as part of their inspections. Buyers and sellers need to know what radon is and how it can affect their lives. Here is some info that is important to know:

UNITS / TERMS:

**Picocuries per liter (pCi/L) – Radon is measured in Picocuries per liter. One curie (named for Marie Curie, the person who discovered metallic radium) is the amount of radiation given off by one gram of radium. The Environmental Protection Agency (EPA) recommends radon mitigation for levels of 4 pCi/L or higher. Remember, there is a difference between a recommendation and a standard. A recommendation is the suggestion or endorsement of something, or a favorable reference about somebody or something. A standard is a requirement established by law.

BACKGROUND FACTS:

**Radon is a cancer-causing, radioactive gas that comes from the natural breakdown of uranium in soil, rock, and water. Radon gets in the air we breathe. You cannot see, smell, or taste radon.

**Radon from soil is the main cause of radon problems in homes and buildings. Typically, radon gas moves up through the ground into a building through cracks and holes in the foundation, and the building traps radon gas. Radon can also be found in well water and in a small number of cases, building materials can emit radon gas.

**Pressure differences between soil, buildings, and the atmosphere dictate the flow of radon gas from higher pressures to lower pressures.

**Radon levels are unpredictable and vary from neighborhood to neighborhood, from block to block, from home to home, and even within an individual home. Radon levels in a home can vary during different times of the year, and even different times of the same day.

The EPA recommends the following:

**If you are buying or selling a home, have it tested for radon.

**For a new home, ask if radon-resistant construction features were used and if the home has been tested.

**Fix the home if the radon level is 4 Picocuries per liter (pCi/L) or higher.

**Radon levels less than 4 pCi/L still pose a risk, and in many cases, may be reduced.

For more information on radon in your area or state by state radon maps visit the EPA website. Or call us and we can recommend a couple of certified radon experts for you to call  to come out and test your home.

Be Safe—Get Tested!

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Philadelphia First Time Home Buyers: Federal Tax Credit Final Cut

Philly 1st time home buyer get your tax creditThe American Recovery and Reinvestment Act originally had a $15,000 housing grant to anyone that bought a house this year. It was cut at the last minute and replaced with an $8,000 first-time home buyer tax credit. Buy a home, for the first time before December 1, 2009, and you can claim an $8,000 credit on your 2010 taxes.

This is a nice extension over the former “tax credit” which required repayment, however this does have a three-year ownership requirement if you claim the credit.

In addition, the bill reinstated the HUD purchase limits to their 2008 levels, after they were rolled-back to the 2007 mark earlier this year.

Home Buyer Tax Credit Cliff Notes:

**The tax credit is for first-time home buyers only

**The tax credit does not have to be repaid

**The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000

**The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009

**Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit

Frequently asked questions about the home buyer tax credit.

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Philadelphia First Time Home Buyers: Federal Tax Credit Update
Philadelphia First Time Home Buyers: Federal Tax Credit

FIND YOUR 1st HOME IN PHILLY AND GET YOUR TAX CREDIT  

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