Erie Real Estate

Market comparison 2011 -vs- 2012

How is the market this year compared with last year?  Here is some data showing the first 4 months of 2011 and 2012.  This is for SFR properties only.  I am comparing the City of Erie, Millcreek and Fairview.

City of Erie:    413 Active Listings    -    Avg Days n Market    125

                      117 Pending Listings  -    Avg Days on Market  108

2011 Sold        190 Sales    -    Avg Days on Market    104

2012 Sold        196 Sales    -    Avg Days on Market    102

Millcreek:        217 Active Listings    -    Avg Days on Market    112

                      103 Pending Listings  -    Avg Days on market    83

2011 Sold        116 Sales    -    Avg Days on Market    118

2012 Sold        135 Sales    -    Avg Days on Market    90

Fairview:         61 Active Listings    -    Avg Days on Market    127

                       25 Pending Listings  -    Avg Days on Market    66

2011 Sold         30 Sales    -    Avg Days on Market    103   

2012 Sold         41 Sales    -    Avg Days on Market    84

The biggest difference that I noticed is the D.O.M. for Active Listings compared to the Sold and Pending Listings.  Would you like to know information for any other area?  I can provide this.  Also, high/low/avg sale price is available if it would be helpful to you.  Just let me know.  

3.8% Sales Tax - included in the US Health Care Reform Bill

Beginning 1/1/13, a new 3.8% tax on some investment income will take effect. This new tax will affect some real estate transactions, NOT ALL.  It’s a complicated tax, so it won’t effect every buyer or seller the same.

The NATIONAL ASSOCIATION OF REALTORS® has developed this informational brochure.  Many examples are available.

There is a 3.8% real estate “sales tax” or a transfer tax created in health care bill, correct? No.  the tax applies to a limited group of taxpayers.

The new 3.8% tax will apply to the "unearned" income of "High income" taxpayers.  They are those whose tax filing status is “single” will be subject to the new unearned income taxes if they have Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is $125,000.) 

Does the tax apply to the yearly appreciation of an asset?  No. Capital gains are subject to this new tax only in the year when the asset is sold.

This was passed by Congress in 2010 with the intent of generating an estimated $210 billion to help fund President Barack Obama’s health care and Medicare overhaul plans.

Will you be affected by this Tax?  Please contact your accountant in advance if you think that you maight be subject to the tax.  That way you can make an informed decision.

Harborcreek Mall - Senior Citizen Housing

To the delight of Harborcreek Supervisors and               

neighboring residents, work has begun on the

120 unit senior citizen apartment building on the

site of the former Harborcreek Mall.

40 of the units have reportedly already been

spoken for even before the building takes

shape.                                                               

Top 10 Questions for Buyers

When a buyer starts into the market to purchase a home, they typically have many questions.  They talk to friends, family, co-workers, etc.  At some point they might begin to work with a REALTOR and engage their services as a Buyer's Agent. 

Among the many questions you may have, I suggest you consider asking yourself the 10 qusetions below.   It could help simplify the process, save you time, money and possibly avoid the heartache of missing your dream home.

1. If I could live anywhere, where would that be?
2. Why?
3. If I find the right home today, what will I do?
4. How soon would I like to be moved?
5. Am I able to buy another home without selling my present home?
6. What are the 3 things in a home that I can't live without?
7. Understand the process I went through to find this home?
8. Can I see myself living in this home?
9. If Congress passed a law and I had to buy one of the homes that I've looked at today, which one would it be?
10. If this home sells tonight while I'm thinking about it, will that be OK with me?

Alternative to #3 above:  If I fournd a home today, that meets all of my expectations, am I in a position to own it?

Are you prepared to start your home search?  Are you pre-approved for a mortgage?  Have you experience the disappoint of finding out the home you liked is now SOLD?  Don't let this happen to you.

 

 

LERTA for Union City

UNION CITY -- Union City is offering tax incentives for residential, commercial and industrial development.

In an effort to bring new businesses after loosing its largest manufacturer, Ethan Allen Global Inc., which employed almost 250 workers, mostly from Union City and neighboring towns.

LERTA, or the Local Economic Revitalization Tax Assistance program, allows local governments to offer temporary tax exemptions to encourage economic and community growth in depressed areas. The Union City Borough Council , Union City Area School Board and Erie County Council  approved the new LERTA program, for all the borough, this spring.

The program took effect on Monday.

Under the program, anyone building a new home or business in Union City will pay no property taxes for one year, then 20 percent, 40 percent, 60 percent and 80 percent of their tax bills over the second through fifth years respectively.  More details are available here.

The same tax breaks are available for substantial improvements to existing homes and businesses. Improvements must raise a home's value by $15,000 and a business's value by $25,000 to be eligible.

City of Erie - Residential Rental Property Inspection Program

earlier this week, I had the opportunity to attend a presentation by Andy Zimmerman, Buildong Code official for the City of Erie.  He gave us an update on the enforcement of the property maintenance, fire, zoning and building codes.

He gave an overivew as to how the process was progressing, the good and bad.  We sent quite a bit of time discussing what the inspectors were looking at and how the problems are being dealt with and resolved.  Below is a partial list of what the inspectors are looking at.  They have a 4 page Property Checklist.  If you'd like the complete Property Checklist, please let me know and I'll send to you.

EXTERIOR:    

• Roofs -    damaged / in disrepair
• Gutters/Downspouts -    missing / need repair
• Exterior Walls -    deteriorated soffit, peeling paint
• Foundation Walls -    mortar joints loose/deteriorating
• Steps, Handrails -    broken/missing steps, missing handrails
• Windows & Doors -   provide screens, broken glass, inadequate locks
• Exterior Yard -    accumulaiton of rubbish, overgrown weeds/grass

INTRERIOR:

• Interior Rooms -    defective walls/ceilings/floors, hazardous use of electrical extension, defective windows, defective/missing smoke detectors
• Bathroom -    GFCI needed, dective drains, inadequate ventilation
• Basement -    impropert gas shut-off valve, improper use of 30 amp fuses, illegal basement sleeping rooms, uninspected electrical service, unsanitary condition (sewage)

  Have you registered your rental properties?  How was your experience?

EMTA - $32 Million Expansion Project

The project -- a 10-year plan that involves 9 acres in the center city and includes the expansion of EMTA's headquarters, bus garage and parking areas -- requires the closing of Division Street and a walkway between East 14th Street and the CSX railroad tracks.  Do you think the street should be closed?  What about students that walk to and from Pfeiffer-Burleigh?   

City Council tabled a first vote on an ordinance to close German Street between East 14th Street and East 15th Street, Division Street between East 14th and the CSX right of way, and East 15th Street between German and Parade streets.

The vote to table  followed a public hearing on rezoning parcels of land for the project. During the hearing, two residents said the street closures would affect public access in the area.  Council is expected to vote on whether to rezone certain parcels of land for the project at its next meeting on April 18.

The project involves 28 parcels in a 9-acre area bounded by French and Parade streets and East 14th Street and the CSX railroad tracks. The expansion will give the EMTA a new 129,000 sq ft bus garage, a bus-washing and bus-fueling building, a maintenance garage and administrative offices.

Where is the money coming from?  The state and federal governments (you and me) are funding the project.

A large eight-story warehouse at East 15th and German streets, a cold-storage facility formerly known as Hersch Cold Storage and Union Storage Co. of Erie.  URS Corp. is a Pittsburgh-based company overseeing the demolition and new construction work.

 

 

 

 

The former Taylor Funeral Home building at 127 E. 14th St., have already been torn down.

 Are you going to the City Council meeting on 4/18 at 7:30 PM?

 

 

Programmable thermostat cuts energy costs

What if you it could save an extra $180 this year -- and every year after that -- and have a more comfortable home at the same time? That should be worth a trip to the home center, right?

A savings of $180 a year is what the U.S. Department of Energy esimates the average homeowner can achieve by installing and maintaining the settings on a programmable thermostat. And the great thing is, once the settings are programmed in, you can forget about them, so your house stays more comfortable, day and night, all year long.

Programmable thermostats are simple to understand. They control your home's heating and/or cooling systems by adjusting them to specific preset temperatures at specific preset times. No more fiddling with temperatures or forgetting to turn the heat down when you go to bed or leave for work. Just set it and forget it.

Programmable thermostats have four different time and temperature modes programmed in, and that's what makes them so convenient and easy to use:

Wake: This mode is used to select the time that you normally get up in the morning, and what temperature you want the house to be at that time.

Day: If you leave for work at a specific time, this setting will lower the heat down to a specific temperature and hold it there while you're away. For air conditioning, it will raise the temperature setting and hold it there.

Evening: This setting is for when you return from work in the evening, and the thermostat will bring the temperature in the house back up to a comfortable level (or, in the case of air conditioning, down) before you get home.

Sleep: Set this time for when you normally go to bed. The thermostat will set the temperature down (or up for AC) to whatever level you set and hold it there until the Wake cycle kicks in again the following morning.

In addition to these four basic modes, there are overrides as well. You can tell the thermostat to temporarily override the program and raise or lower the heat or the air conditioning until the next cycle starts, for those times when you're home and you want it a little warmer or cooler. There's also a "hold temperature" mode for use when you're on vacation, so you can set a higher- or lower-than-normal temperature while you're gone and the thermostat will hold that indefinitely, regardless of the four different cycles.

Four different models fit your lifestyle 

Do you have a programmable thermostat?  What has been your experience?

7 Killer Ways to Get Rid of Weeds

Nothing ruins your garden or yard like weeds, those uninvited guests that rob your plants of space and nutrients. So murder those weeds, but without harmful chemicals that can do you in, too.

Who says you need standard weeding tools to kill weeds? Here are 7 ways to kill weeds with weapons you already have around your house.

How to kill weeds 

1. Newspaper: A carpet of newspaper, which blocks sunlight and oxygen from reaching the soil, will smother weeds already sprouted and prevent new ones from growing. Throw down newspaper in 10-sheet layers, wet to hold it down, and cover with an inch or two of mulch. If weeds begin to grow in the mulch, add more layers, making a mulch-newspaper lasagna, which eventually will decompose and nourish the soil.

2. Old shower curtains and carpet samples: Spreading these useless items in garden paths or between rows will keeps weeds from ever showing their unwanted heads. Cover with mulch.

3. Corn gluten meal: This corn by-product stops seeds from growing into weeds. Since the meal will prevent germination, spread it around established plants, and after seedlings and transplants have taken hold in the soil. After harvest, spread the meal to prevent late-season weeds.

4. Vinegar: The acetic acid in 5% vinegar is a desiccant that sucks the life out of plant leaves. It’s most destructive to young plants with immature roots, though it just rolls off weeds with waxy leaves, like pennywort or thistle.

Make sure you cover desirables before spraying, because vinegar is an equal opportunity killer. Keep your spray on-target by removing the bottom from a 2-liter plastic soda bottle, and placing it over the weed. Spray vinegar into the mouth of the bottle, which will keep it from splattering on your vegetables.

5. Vodka: Don’t know if vodka makes weeds fall down dead or drunk, but 1 ounce mixed with 2 cups of water and a couple of drops of dish soap will dry out weeds that live in the sun. Doesn’t work that well on shade-loving weeds. Protect desirables, because vodka will dry them out, too.

6. Soap: The oil in soap can break down waxy or hairy weed surfaces, making them vulnerable to desiccants. So add a few drops of liquid dish detergent to vinegar or vodka sprays to keep the solution on leaves. The soap also makes leaves shiny, which will help you keep track of what you’ve sprayed.

7. Boiling water: After you’ve made yourself a cup of tea, take the kettle outside and pour the boiling water on weeds, which will burn up. This is a particularly good way to whack driveway and walkway weeds, because the boiling water can run off impervious surfaces and cool before it reaches border plants.

FHA Minimum Property Standards

These are items that the appraiser will be looking for to make sure the property meets HUD minimum property standards.  While this list may not be all inclusive, being aware of these items may help reduce your time in wondering if the FHA appraisal will 'flag' certain property conditions.

 

• Peeling and chipping paint
• Any signs of mold or mildew
• All windows freely open and close
• Missing electrical fixtures, switches/outlets/and switch/outlet plates
• Handrails if there are more than 3 steps
• Approximate remaining life of roof (at least 2 years)
• Signs of termite damage
• Missing screens on windows
• Exposed wiring
• Missing gutters
• Damage to exterior - including soffit, fascia and siding
• Dampness or water in basement
• Missing door knobs
• Hot water heater - make sure it has a relief valve
• Utilities must be turned on and checked for operation
• Missing built in appliances
• Water stains on wall and ceilings

What has been your experience with FHA appraisals?  Were they easy to resolve?