How will you know if the Home is a "great deal"?

I often have home buyers looking for a 'great deal'.  My Zillow client reviews show 5 stars for Negotiation, and at our very first meeting I am often told, we want a Realtor who will get us the "best deal"  So the question that begs to be asked is - What is a good deal? and how will you know when you get the Best Deal? 

Price of home -  is determined by external Market conditions, essentially supply and demand.  The negotiating difference in a typical real estate transaction is about 2-3%.  The assumption being, the seller would prefer to drop the price to attract other buyers, before they will agree to a home buyer's aggressive low ball offer.  What is Market value?

Multiple bids - The whole point of a successful negotiation is, to GET the dream house after all is said and done.  Aggressive lowball offers are often rejected - so are they really helping?  Idea is to try for a win win, understand the market, compare recent sales and offer a price that will get accepted or encourage a reasonable counter offer, eventually leading to the sale.

Speculation - You want a home that will retain its value, and hopefully even appreciate in the long run, but something you love, that meets your family's needs. It is more of an investment in lifestyle and family, rather than just a financial investment.  If you want to speculate - the stock market may be a better option.  

So I urge my buyers to switch focus slightly.  

What then is a good deal?

- Is a low price the best indication of a great deal?
- Is it still a good deal if that home is in poor condition, or at a compromised location?

- Could snagging the best home in a desirable community with low turnover, be a great deal?

- Is winning a multiple bid, snatching it away from other buyers....a great deal? 

- Buying a well-maintained, move-in-ready home that needs no updating would be a great deal for a busy family right?

- Being able to negotiate at Inspections, when you were unable to budge the Purchase Price due to competition, is awesome!

- Buying now, instead of throwing away money on rent for another year - that's incredible savings right?

- Locking in low interest rate over the life of your loan is an incredible saving right?
- House hunting for years, willing to wait until you get your perfect home  is fair enough.  But the kids do needs that space or school district now -  that would be a great deal right?

All just a matter of perspective.  I bring these up in my conversations with home buyers all the time. 

The idea is to find the best home within your criteria, at the right time, at the best possible price!  

Some more info and food for thought before you start house hunting click here. 

Click here to see what your Home Worth? 

Search for Homes at BelaVoraHomes.com  

Bela Vora, REALTOR®,

Coldwell Banker Preferred 

390 Waterloo Blvd, Exton, PA 19341.

Cell: (484) 947 3127

Office: 610 363 6006

Success Story - Location and lot trumps fancy kitchen and baths

Here is a special success story. When buying his dream home in 2013, location and a large lot were a important for my client.  The newer cookie cutter homes or townhomes in the Garnet Valley area did not appeal. The older single family homes had dated interiors which were not too exciting.  The price stretched only so far - and he ended up buying an older home, that was the perfect location for his work, and in the school district he wanted for his son. While we all love the idea of moving into a home with nice interiors, it is important to make some sacrifices in order to stay within budget.  He and I had discussed these pros and cons, and he was very comfortable with the choice he made. 

Fast forward to 2020.  In some of my recent back and forth with him - he mentioned that he had done a major overhaul to his home. When I saw photos he sent me with all the renovations, it is quite a transformation, the home looks amazing. The photos show a fabulously redone kitchen and bathroom, he moved the laundry room downstairs to make it a full bath, with some nice newer decor provided by his wife (another fantastic change in his life!) he is so happy with his updated home. Check out the before and after pics!

This is exactly what I refer to, when I tell my buyer clients - you cannot change lot and location later-but you can always update the kitchen and baths. Understand how much the big ticket updates will cost you and price the home accordingly.  Prioritize based on your current needs - and plan for enhancements later.  Above al - do not stretch the budget beyond a level of comfort.

Not only does this buyer now own his dream home, he has also increased his property value significantly with his customized renovations what a great win-win situation.  Love this story!


Call me to help create one of your own!

Click here to see what your Home Worth? 

Search for Homes at BelaVoraHomes.com  

Bela Vora, REALTOR®,

Coldwell Banker Preferred 

390 Waterloo Blvd, Exton, PA 19341.

Cell: (484) 947 3127

Office: 610 363 6006

Financial Tips & Buying a House Tips that Fit on an Index Card

There are countless personal finance books and blog articles that offer advice on investing, savings, retirement and taxes. 

You could read all those books, or you can listen to University of Chicago professor Harold Pollack.Professor Pollack advice, he believe that you can fit all the investment advice you'll ever need on a single index card.

In 2013, professor Harold Pollack did an online video chat with personal finance writer Helaine Olen about her book, Pound Foolish. The topic was how regular people get steered into bad investments  by financial advisers. 

During the interview Pollack said "The best personal finance advice can fit on a 3-by-5 index card, and is available for free in the library," "So, if you are paying someone for advice, almost by definition, your're probably getting the wrong advice because the correct advice is so straight forward.

After Pollack posted the video, he started receiving emails asking where to find this index card and what was the advice. The index card didn't exist.

So, Pollack grabbed an index card from his daughter wrote several personal finance principles, snapped a photo with his phone and posted it online. The result, the photo went viral ( image above is of the index card).

Here are Pollack's 9 personal finance tips from his original index card:

1. Max your 401(k) or equivalent employee contribution.

2. Buy inexpensive, well-diversified mutual funds such as Vanguard Target 20xx funds.

3. Never buy or sell an individual security. The person on the other side of the table knows more than you do about this stuff.

4. Save 20% of your money.

5. Pay your credit card balance in full every month.

6. Maximize tax-advantaged savings vehicles like Roth, SEP and 529 accounts.

7. Pay attention to fees. Avoid actively managed funds.

8. Make financial advisers commit to the fiduciary standard.

9. Promote social insurance programs to help people when things go wrong.

The index card was widely criticized for not including "buy a home" so he wrote an entire article later called Buying a Home? Here are 10 things you should know.

See the photo below of the housing index card - a handy resource to use as you look at houses or think about buying one, plus some additional advice as you contemplate making the big decision.

Click here to see what your Home Worth? 

Search for Homes at BelaVoraHomes.com  

Bela Vora, REALTOR®,

Coldwell Banker Preferred 

390 Waterloo Blvd, Exton, PA 19341.

Cell: (484) 947 3127

Office: 610 363 6006

Tips for Selling or Renting your home

  Sellers and landlords have to be selective about where they spend their money and what exactly should be done. Here is the order....based on current local market trends in northern Chester County and surrounding areas. With all the competition from new construction in the area...Buyers don’t want honey do list as soon as they move in and if they accept it - you will certainly get beat up on price. Which upgrades give biggest bang for buck? 

Basic level is to declutter and deep clean - often forgotten things - appliances (oven), baseboards, windows, screens, power wash exterior an deck/patio, take care of weeds and overgrown landscaping.

Next - fix everything broken (floor tiles, kitchen cabinet hinges & handles),leaking (faucets,toilets) stained (carpet) creaking (doors) missing (light bulbs, door knobs) peeling paint, plumbing issues shaky railing etc etc. for a well maintained home. Make sure everything is up to code - make sure appliances are working fine. 

Inexpensive updates like faucets, mirrors, light fixtures, paint colors, window treatments that date a property - modernize them to make them appear move in ready. Check local trends, nickel finish versus gold finish faucets, beige neutrals versus warm grey neutral paint colors. 

The above can apply to any home whatever the price range - for rental or for sale.  If what buyers can see on their visit needs work - total turn off.  If everything appears neat and well maintained - they will assume what cannot be seen is also well maintained. When renting - if a clean and well maintained property is handed to tenant - you are likely to get tenants who are more cleanliness and maintenance conscious - and they are likely to maintain it in that condition as well. 

Flooring - stained carpet is a no - if steam cleaning doesn't get stains out replacing is inexpensive relative to value of home.Consider modern better quality laminates for rentals - re-engineered hardwoods that are more long term upgrades. 

Non visible expensive upgrades - septic, well, roof, HVAC, windows - these are big ticket and whether they are needed Depends on location of property - age - level of competition, nature of visible problems -  timing for sale - this decision would have to be customized to each home.  I might recommend pre-inspections - and prefer repairs to replacement as far as possible. Call me - for a customized assessment and plan of action. 

Click here to see what your Home Worth? 

Search for Homes at BelaVoraHomes.com  

Bela Vora, REALTOR®,

Coldwell Banker Preferred 

390 Waterloo Blvd, Exton, PA 19341.

Cell: (484) 947 3127

Office: 610 363 6006

Home Moving Tips- Chester County-PA

If you have a move coming up, here a few  tips to help your move go smoothly.

1.  Research movers ratings thoroughly. We’ve all heard horror stories about movers stealing, losing or recklessly damaging belongings, make sure you’re choosing a reputable, licensed company with ample experience. Check reviews, Better Business Bureau ratings and references before committing to hire. It’s also a good idea to purchase appropriate insurance for your belongings if you have a lot of expensive items, just in case.

2. Don’t wait till the last minute to book your movers. Moving companies do book up, especially during the busy summer months, so don’t leave this decision until the last moment. Start looking for a company early and get on its schedule.

3. Toss or donate unwanted belongings before getting a quote. So you don't end up paying to have these item moved, or run out of room in the moving truck — If you pare down your belongings a great deal between the time of your quote and moving day, you can save yourself some money.

If you do require flexibility in truck space for your move, be upfront about it. Some companies allow you to pay by the foot, which means you pay only for the space you end up using. Usually this involves sharing space with another customer, in which case your belongings will be divided with a locked partition inside the truck.

4. Label your boxes. If you’re planning to hire professional packers, it’s smart to ask about their policy for labeling boxes. If they don’t label (surprisingly common), plan to be present while the packers work (a good idea anyway) and make it your job to label each box as it’s completed.

Packing tip: Label your boxes with your last name as well as the name of the room in your new home where you want the box to end up. When labeling rooms, use language that will make sense to the movers: Instead of “Madison’s room,” you could label a box “Upstairs small bedroom.”

5. Block out close parking in advance . If your movers can’t park the truck close to your home, you’ll probably get stuck with what’s known as a long-carry fee — and the farther the movers have to walk to bring each item, the longer it will take. To avoid this, do whatever you can to ensure there’s a close place to park the truck at both your old home and new. You may want to notify neighbors in advance, park your cars in the closest spaces to hold them, or put cones and signs in the space in front of your house on the day of the move.

6. Remember to measure openings at your new home. After one harrowing experience attempting to get a giant sofa through a narrow stairway (our movers eventually gave up), I now know the value of measuring doorways and stairwells in advance. If bulky furniture doesn’t fit, you may be forced to leave treasured pieces behind, or — if you simply can’t do without an item — you may need to ask for hoisting services, which aren’t cheap and may not be available right away.

7. Take the time to read the fine print. Before the movers leave at the end of the day, you’ll be asked to sign off on the inventory sheet and bill — and you’ll be exhausted when this happens. It’s easy to breeze through these last steps and just sign whatever papers they thrust in front of you, but it’s important that you take the time to actually read what you’re signing.

Double check that everything that went into the truck has actually arrived. Look over the bill carefully and be sure there are no extra charges.It’s a good idea to take a look inside the truck before it pulls away. And look close: Tiny (but necessary) items like drawer knobs and shelf brackets can easily get overlooked on the floor of a big truck.

8. Just get the big stuff into position at your new home; the rest can wait. Think rugs and major (read: heavy) furniture pieces — anything you can’t easily move on your own — are the things that should be put into position by the movers. Ideally, you’ll already be armed with a floor plan of the new space with furniture positions marked out. But if you didn’t get anything that elaborate organized, no worries. Just station yourself in the new place as early as possible before the movers arrive and make some decisions about where things will go.

Then locate the box with your bedding, because you’re going to be ready for a good night’s sleep!

For more tips or recommendations call Bela Vora at 484 947 3127 

To learn more about me visit Zillow and read my reviews -                               https://www.zillow.com/profile/Bela-Vora/ 

Bela Vora, REALTOR®,
Coldwell Banker Preferred - Exton Real Estate.
Office: 610 363 6006; Cell: (484) 947 3127
Website  |  Facebook  |  Blog

These smiles after settlement pretty much say it all - what a success story!

These are the smiling faces of my wonderful clients who just bought their first home!  Buying a home can be daunting - but this couple did it just right in my opinion.  Did their research, engaged a knowledgeable local Realtor, asked a lot of questions, weighed all options, waited for the right home....and when they saw one they fell in love with, never hesitated a bit! 

We had to fight other buyers over multiple bids and deal with the appraisal that came in short, yet they never lost their unwavering faith in me through it all.  Always tried to understand pros and cons and trusted my advice as to the next steps.  It was a textbook case, of how a seasoned agent who is strong at negotiation, understands paperwork/contracts and is fiercely protective of the client's interests, can not only hold the deal together, but save the home buyers big $$$$! 

Yes, in a multiple bid we managed to bid just the right amount to be the winning bid, and ofcourse managed to negotiate a failed appraisal to the buyers' advantage.  The trust that these buyers had in me was truly very humbling.  You can tell I had to be on top of my game,  I just couldn't let them down.  Yet another perfect example of how you can save a lot more with the right Realtor! 

This was extra special to me because as I with with young couples like them, I see in them, my own kids a few years down the line, possibly with their significant others, going thru the same house hunting process.  So Abhi mentioned her dad is a Realtor in India... likewise, my kids may be looking for a home in another state or even another country.  I hope their experience is awesome as well, and they have such happy faces at settlement! 

I cannot tell you exactly how I will make a difference to your real estate transaction, because each transaction is unique, with different set of players and circumstances.  But I will confidently tell you, I am customer service oriented and fiercely loyal to my client's interests, so there will be a noticeable difference.  Read about my other Success stories here.

To learn more about me visit Zillow and Linkedin and read my reviews.

Bela Vora, R3ALTOR

Top 1% of all Realtors in Chester County 2016, 2017.

#1 Agent, Coldwell Banker Preferred Exton 2016, 2017.

Coldwell Banker Preferred - Exton

Office: 610 363 6006
Cell: (484) 947 3127

Downsizing And Moving Toward A More Sustainable Lifestyle

De-clutter: downsizing and moving toward a more
sustainable lifestyle

Multigenerational, not just empty nesters

The American ideal of the big house, a family showplace full of accumulated belongings, has
gradually eroded and is steadily being replaced by a more economical and environmentally
conscious mindset. It’s a new paradigm that crosses generations, from millennials to empty
nesters, who want to simplify their lives and be shed of the physical encumbrances typical of an
acquisitive culture. It’s tempting to chuckle at the fashionable “mini” houses, extreme
manifestation of this movement, but it’s a symptom of a deep-seated conviction that “bigger” no
longer means “better.”

Sustainable & Environmental Friendly
Reduce

Downsizing isn’t just a reference to moving from a large, suburban house to a compact, more
efficient use of space. It also means getting rid of all the things you don’t need anymore, and
doing it in an environmentally friendly, socially responsible way.

Donate

Members of Gen X and the millennial generation have led the way in this revolution of reduction,
donating clothing and other items to charitable organizations or thrift stores, and using the
opportunity to make a little money. All in all, an inspired form of recycling.

Communicate with your family
Empty nesters are of a similar mind, though their motivation is considerably different. These are
people looking to get their children to take as much “stuff” with them when they move away from
home. Whether they do or not, it’s not necessary to throw things away without any forethought.
Instead, try choosing an item to get rid of every time you acquire something new. Don’t assume
that your kids will want objects just because you think they should. They have their own ideas
about what’s useful and important. Talk to your children about what they’d like to take with them
rather than trying to foist your excess on a young person who may not have room.

Timing
Be Proactive

For aging couples, a good rule of thumb is to move when you’re able, not when you have to
move. If your children have left the nest, it might be an ideal time to begin looking for a s

Location
People in their 50s are increasingly interested in having the freedom to walk to shops, theaters
and restaurants in a more urban setting, without the burdens and cost of home maintenance. It
makes sense to make such a move when you’re still young enough to enjoy the benefits.
Consider the potential cost of remodeling when you consider purchasing a smaller home. Bear
in mind that the costliest upgrades will be in the kitchen and bathrooms.

How to
Three Categories
As you begin to weed through your belongings, divide them into three categories : donate, give
away, or throw away. This will help you begin the process of parting, emotionally and
intellectually, with things you no longer need or want. It also applies a rationale to your actions,
making it a little easier to part with things you may have owned for a lifetime.

Ask For Help
You may consider hiring a professional organizer, someone who can help you downsize in ways
that make sense from a financial and logistical standpoint. According to HomeAdvisor, on
average, it costs about $483 to retain an organizer, though in many areas you may be able to
find one for as little as $100. A professional can help you clean out closets and overstuffed
drawers and provide guidance on de-cluttering before you move.

Simplifying one’s life is a natural and desirable goal. Today, it’s the objective of both young and
old. A growing sense of personal responsibility to the environment and the unsustainability of
our throwaway culture have encouraged new generations of Americans to “de-clutter” every
aspect of their lives.

"Thanks to Gene Ramsey for this article!" For more information on downsizing you can visit Gene's website, http://downsizingdad.com/category/posts/

Bela Vora, REALTOR®,
Coldwell Banker Preferred - Exton Real Estate.
Office: 610 363 6006; Cell: (484) 947 3127
Website  |  Facebook  |  Blog 

6 Reasons why the kickback isn't worth it - Expensive or cheap, choose wisely!

Let me begin by defining a "Discount Agent" - A buyer's agent who will 'kickback' to their buyers, a portion of their Realtor fees, as offered to them by the seller's Listing agent. 

Here are 6 Reasons why the kickback isn't worth it -

1. Buyer agent fees
Firstly, hiring a good buyers agent costs you, the buyer, nothing.  The agent fees are paid by the seller - so why not take advantage of a knowledgeable, professional Realtor to assist you with the purchase of your home.  It is a decision that you are involved with financially, personally and emotionally...potentially for decades.  A home where you raise a family and make memories.

2. Knowledge and Education
Barriers to entry in the real estate business are quite low. All you have to do is pass 2 exams and you can get licensed.  The monetary investment in the business can be pretty minimal, so anyone can become a real estate agent easily.  The question then is, what separates one Realtor from another.  In this profession more than any other, experience and learning matters. Does your Realtor understand contracts? Do they educate you on the market? Are they knowledgeable about local neighborhoods? Are they available to answer your questions, or follow up with related parties to the transaction?

3. Wal Mart home shopping
Realtor fees are predetermined, so why do these agents decide to share them with the buyers?  When asked, the reason the agents discount give is  "We would not get any business otherwise"  Literally, discounting is the only way they get business.  These agents are essentially the "Wal-Mart" analogy in real estate, competing on price alone.  Would you really buy a business suit, for your most desired job interview, or a wedding dress at WalMart?   Would you trust a discount agent with the most expensive thing you will ever buy or sell? Some things deserve the attention of an expert - and buying a home is certainly one of them.

4. Real Savings
The question is - are you really "saving" money?  The kickback from the agent helps reduce a specified amount in your settlement costs - but that is completely wiped out, if they unable to protect your best interests.  You may not be aware of issues in the home you are buying, and only find out when its too late - or worse, at resale.  You may need the contractual skills to protect your interests, in case an issue arises during the transaction, but they are not qualified or skilled enough.  You miss the house you really really wanted because they were simply not answering your phone call, or didn't have time to show it to you.  How effective would those savings be under these circumstances?

5. Negotiation Skills
Would a discount agent negotiate strong for you.  An agent who does not have the negotiation skills to protect their own fees, how well will they negotiate on your behalf?  Negotiation not only happens at time of putting in an offer - it may happen during Inspections, it may happen during the walk thru or when an appraisal come in short.  I have several instances where I easily saved way more money for my buyers, that the possible credit they could have got from a discount agent. 

6. Multiple bids 
In a hot market it is essential to "win" the house from competing buyers.  Agent reputation and professionalism matters a lot in such situations.  The discount agents are not respected, and in fact perceived as highly unprofessional, and seen as diluting the professionalism standards, so most listing agents prefer to not work with them.  

In my experience over the years, I have encountered many incidents where all of the above was true - the clients involved knew it - and really appreciated they went with a full time, knowledgeable, reputed and professional Realtor like myself.  As the graphic suggests - Expensive or Cheap - choose wisely. 

Every transaction is different and has different set of players and circumstances,  Every house is different, even in cookie cutter neighborhoods.  Hire a Realtor who makes a difference, every single time, someone who looks out for your best interests and is willing to put in the time and effort.  Read some of my success stories here 

To learn more about me visit Zillow and read my reviews - https://www.zillow.com/profile/Bela-Vora/

Bela Vora, REALTOR®,
Coldwell Banker Preferred - Exton Real Estate.
Office: 610 363 6006; Cell: (484) 947 3127
Website  |  Facebook  |  Blog 

Researching School Districts before you Buy a House - Chester County, PA

School district in one of the most important criteria for most buyers looking to buy real estate. Real estate agents are not allowed to steer clients towards or away from any school districts, so we cannot give our opinion on which school districts are good in Chester County or which ones to avoid.

We highly encourage home buyers to do their own research before purchasing a home.
Below are some links you may find helpful in comparing local school districts.

QUICK LINKS TO SCHOOL DISTRICT HOMEPAGES

Downingtown Area School District - https://www.dasd.org/

Owen J. Roberts School District-https://www.ojrsd.com/

Great Valley School District-https://www.gvsd.org/

Phoenixville Area School District-http://www.pasd.com/

West Chester Area School District-https://www.wcasd.net/

Tredyffrin/Easttown School District-https://www.tesd.net/

Coatesville Area School District-https://www.casdschools.org/

Unionville Chadsford School District-http://www.ucfsd.org/

Avon Grove School District -https://www.avongrove.org/

Oxford Area School District-https://www.oxfordasd.org/

Twin Valley School District-http://www.tvsd.org/

Spring-Ford Area School District-http://www.spring-ford.net/

Kenneth Consolidated School District-https://www.kcsd.org/

Octorara School District-https://www.octorara.k12.pa.us/

LINKS TO COMPARE SCHOOL RANKINGS

https://www.greatschools.org/

PA Department of Education SAT & ACT Scores,http://www.education.pa.gov/K-12/Assessment%20and%20Accountability/Pages/SAT-and-ACT.aspx#tab-1

NICHE 2018 best school districts in Pennsylvania, https://www.niche.com/k12/search/best-school-districts/s/pennsylvania/?page=2

U.S News - Best Public High Schools in Pennsylvania -  https://www.usnews.com/education/best-high-schools/pennsylvania

School Digger- Pennsylvania Middle School Rankings -https://www.schooldigger.com/go/PA/schoolrank.aspx?level=2

School Digger - Pennsylvania Elementary School Rankings - https://www.schooldigger.com/go/PA/schoolrank.aspx


Bela Vora, REALTOR®,
Coldwell Banker Preferred - Exton Real Estate.
Office: 610 363 6006; Cell: (484) 947 3127
Website  |  Facebook  |  Blog 

7 Benefits of Buying or Selling your Home in the Fall Season.

Many many advantages to selling or buying your home in the Fall Season - here goes...

1. Home for the Holidays - We all want to enjoy the holiday season with our loved ones in this cosy place we call home!  When you buy or sell in Fall - you are all settled in your new house before the holiday season.  Make lots of memories!

2. Less Competition - Home Sales peak in June/July.   As a result, there are fewer homes on the market in the Fall - which means less competition for the sellers!  Also, the buyers who are looking at this time are more motivated,  you won't get too many 'just looking' buyers.  Buyers tend to be less picky - because there aren't that many confusing choices.  We currently have a good inventory of homes in Chester county to choose from.

3. Tax break  - Property taxes and mortgage interest are deductions home buyers can claim on their taxes.  If you manage to close before Dec 31, you get a neat little tax write off.  As a seller - capital gains and home improvements are an important calculation and your closing costs will help determine those.  Consult your tax advisor regarding how you may take advantage of this.

4. Right Price - As a seller, your Realtor has a much easier job of finding comparable sales for appraisals.  There have been many recent sales to choose from - which is not true for a home listed in Early Spring.  So if you have a well maintained upgraded home, it can fetch the premium price you were hoping for.   Even for buyers - with less competition, you can avoid multiple bid scenarios and negotiate a good price on a home, because sellers don't want it sitting on the market thru the winter months.

5. Shopping season - The upcoming holiday season is the perfect time to get good deals and "Holiday Sales" to furnish and decorate your home.  You could get good bargains this tie of the year.  Watch out for those Black Friday sales ad have the goods delivered to your new home instead of paying to move them.

6. Condition of property - Most homeowners have done maintenance on the house during the Spring and Summer months.  Bug ticket additions like decks and patios, window, roof replacements possibly or regular maintenance like power washing, window screens, landscaping, painting etc have just been made to the home.  If you are a seller - home is ready to list with minimal work.  If you are a buyer, move in without a long to-do list!

7. Colors - Seasonal colors and smells make the home look really inviting!  Who doesn't like the rusts oranges and olives - warm crisp colors of this season!  The pumpkin spice smells of candles burning and pies in the oven - that's what home is all about!

Picture credit - Coldwell Banker Preferred.

Bela Vora, REALTOR®,
Coldwell Banker Preferred - Exton Real Estate.
Office: 610 363 6006; Cell: (484) 947 3127
Website  |  Facebook  |  Blog  

Homestead Tax Relief - Chester County, PA

Homeowners may not realize that they can avail themselves of annual tax savings, through the Homestead/Farmstead Exclusion Program.  The Homeowner Tax Relief Act, Act 72 of 2004, was signed into law by Governor Rendell on July 5, 2004, to allow school districts to reduce property taxes by lowering your property tax bill; the legal term for this is a “homestead or farmstead exclusion.”

What many homeowners don't know is, that when you buy a property in Chester County, PA, even if the current seller was getting that tax savings, it is not automatically transferred to the buyer.  The buyer has to fill out a form and send it in, to get those tax savings. 

This link has all the FAQs regarding this program.  

Get more info on Chester County Tax Assessment and appeals here.   Call me for more info if needed.  

Always making a difference...

Bela Vora, REALTOR®,
Coldwell Banker Preferred - Exton Real Estate.
Office: 610 363 6006; 
Cell: (484) 947 3127
Website - Search Homes
Read my Reviews on Zillow  |  Facebook  |  Linkedin

Property Tax Assessment Appeals in Chester County

The property tax is used as a revenue source by county government, 14 school districts and most of the 73 municipalities in Chester County. It is the responsibility of the County Assessment Office to place a value on each parcel of land and any improvements (structures) thereon. Assessments are derived by assessors who are state certified under Pennsylvania law.

New Construction Assessment
The county assesses the value of a home when it is built.  They send an inspector to all new construction properties to determine the assessed value of the property.  The homeowner gets the first Tax bill (called the Interim bill) a few months after Settlement.  As all my new construction clients know, you definitely want to appeal the tax assessment when you get this bill, because new construction is always assessed too high. The letter you get from the county has the info on how to make the interim appeal, but you can also get more info here.  http://www.chesco.org/255/Assessment-Appeals.  Remember there is a time limit to making this appeal - and your letter will state what it is.

Resale Homes Appeal 
You don't just appeal taxes for new construction homes.  In a recessive market, when home values have fallen, it definitely makes sense to appeal the assessment, in order to lower the tax bill.  The process is very similar - go to http://www.chesco.org/255/Assessment-Appeals which answers a lot of frequently asked Questions.  The time frame to appeal in Chester county is May-July, they will not accept the appeals throughout the rest of the year.

The Process
The form is pretty easy to fill, you can download from the website.  There is a $25 fee, and you are required to give 3 comparable sales or a recent appraisal.   The form asks what you think the current Market value of your home is.  It does not have to be your purchase price.  Call or email me, and I will be able to provide you with 3 comparable properties required for the appeal.  No need to pay for an appraisal.  Ofcourse you only want to appeal taxes if your appeal is likely to lower your taxes.  If property market values have risen, you do not want to bring that to the attention of county officials.

Relation between Assessed value and Market value
How do you know if your property assessment is too high?  The county decides on a Common Level ratio (CLR) which determines the relationship between the Market value and Assessed value of a property.  Currently,  in March 2017, the Chester county CLR is 53.8%.  Which simply means that if the assessed value of your property (building and land) is $100k, its fair market value is about $186k. (100,000/53.8%)  Once you know the fair market value, it is easy to calculate the assessed value and vice versa.  All taxes are a % of the Assessed value, the Chester county millage rates are available here, so it is easy to determine if you are paying too much tax relative to your neighbors, simply do the math.

Hope that was helpful.  Look out for my next blog article regarding the savings thru the Homestead Tax relief.

Always making a difference...

Bela Vora, REALTOR®,
Coldwell Banker Preferred - Exton Real Estate.
Office: 610 363 6006; Cell: (484) 947 3127
Website - Search Homes

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