Interest Rates Post-Election
I don't know who thought it was a good idea to lump the election, daylight savings, and Halloween all into the same week, but I am tired. And I know you are too; sending a little extra love to everyone out there today.If you've been keeping an eye on the market and mortgages this week, you'll notice the markets roared and mortgage rates increased. But if the Fed cuts rates, doesn't that mean interest rates go down too? Not exactly. The two are mutually exclusive. Despite how often mortgage and interest rates are discussed together, they aren’t directly linked. The interest rate is more so tied to the 10-year treasury yield. And the 10-year spiked this week in response to the election outcome with fear of future inflation. The average rate for a 30-year fixed mortgage was 6.79% as of yesterday, according to Freddie Mac. Also, is it a seller’s or buyer’s market? Neither. And I wouldn't hold your breath for lower rates unless a miracle happens. Economists anticipate rates staying the sale or inching up a little higher. With that said, I wish I had better news on the mortgage front. I'll continue to keep everyone abreast. If you want to talk more about interest rates, homeownership, or what it looks like to sell your home in this climate, attend our upcoming virtual workshop on 11/20 at 6 PM. RSVP here!
How to Appeal Your Property Taxes in Philadelphia (and beyond)!
If you’ve just received your property tax bill for the upcoming year and it’s higher than you expected, don’t worry. You can appeal your property taxes! Let's walk through the process of appealing your property taxes, step by step. Check your assessment notice First things first, take a good look at your assessment notice. This document shows how much your local county thinks your property is worth. If you think they've overvalued your home, it's time to consider an appeal. Do your homework Before you jump into the appeal process, do some digging: Look up recent sale prices of similar homes in your area. You can do this easily on our website or reach out to us directly for comparables (comps). Check if there are any mistakes in your property's description (like date built, an extra bathroom or a finished basement that you don't actually have, square footage, etc.). If there is, then you have a good case for appealing the newly estimated property tax. Consider getting an independent appraisal to compare with the city’s/township’s. If you want to go this route, reach out to us and we’ll provide our contact. It’s important to note that since property tax assessment appeals provide more information than your county has, there’s always a chance that your property is reassessed at an even higher value. If that happens, you’ll need to pay more in property taxes than you do, which is why it’s important to weigh all the information first. File your first level review or appeal If you wish to proceed, the next step is to file your appeal. This may sound overwhelming, but we promise it’s as straightforward as it can be. To file your appeal with your county's Board of Assessment Appeals, you should: Fill out the form you received in the mail to file a First Level Review of your property valuation OR Go to the PA Department of Revenue’s website. Find your county's appeal form Gather evidence to support your claim (comps, a rececnt appraisal, etc.) Fill it out completely Submit everything before the deadline (which is usually September or October of the respective year). Note that this may require a small fee If you are not satisfied with the outcome of your first review, file a second appeal Once you file your second appeal, the board will schedule a hearing. To get ready, make sure you have all your documents organized, practice a brief statement about why you think your assessment is too high, and have multiple copies of everything just in case you need to share them with others. You may hire an attorney to represent you on your behalf. We personally love Nochumson P.C. Once you’re there, present your case and answer any questions the board may have for you. The board will make a decision within a few weeks, so all that’s left to do is wait! Good luck, and may the property tax gods be ever in your favor! Remember, while this process is similar across Pennsylvania, some details might vary by county. Always check with your local assessment office for the most up-to-date information. If you have any questions about appealing your property taxes, feel free to reach out at brittany@nettlesandco.com.
Navigating the NAR Settlement: Sellers
A less vibrant, but very necessary "help me help you" blog about some upcoming consumer changes within the real estate industry. The Context: in March 2024, the National Association of Realtors® (NAR) announced a settlement agreement that would resolve litigation brought on behalf of home sellers related to broker commissions. The terms of the settlement agreement require covered MLSs to adopt and enforce a new set ofrules described in the terms of the settlement agreement. NAR took the opportunity to further improve its policies and communications to comply with the settlement, while also enhancing and clarifying options for consumers. The Change: while our team has always been transparent in our practices (professionally and contractually - PA is one of the states LEAST impacted by the NAR lawsuit), we're adding a brief two-pager to our Listing Guide, summarized below, to explain the "new" standards and structures. They go into effect formally on August 14th. However, we're putting them into practice now. Our summary applies to buyers too! You want professional representation! Any questions, please reach out! We love love to talk about this with our clients. OK, so Cooperative Compensation: The premise of Cooperative Compensation is an agreement between a listing broker and seller to incentivize cooperating brokers to write offers and to reward an accepted offer on a property. If offered, Cooperative Compensation will be paid by either the listing broker or the seller. Cooperative Compensation is not required by law or practice, or by Keller Williams. Cooperative Compensation must be openly discussed with the seller and approved in writing before it is offered. If approved, the amount of the offer is fully negotiable. 13 Reasons Why a Seller wants a Buyer Represented by a Professional Realtor: The seller and listing agent will work with a buyer’s agent who has been fingerprinted and undergone background checks. The buyer’s agent will serve as an intermediary, which gives the seller the best chance of reaching agreement and closing. A buyer’s agent can work with the listing agent to problem solve and help bridge differences between clients that could otherwise derail a positive transaction for the seller and buyer. The buyer’s agent will work to safeguard the seller’s home during showings. The buyer’s agent will work to ensure that the buyer is qualified to purchase the home. The buyer’s agent will work to ensure that the buyer has the cash available for down payment and closing costs. The buyer’s agent can provide feedback to the seller regarding price and condition that will help them sell their home. Where available, the buyer’s agent will use promulgated forms that protect all parties. The seller and listing agent will work with the buyer’s agent who has agreed to a code of ethics. The buyer’s agent is highly likely to be properly insured, which protects all parties. The buyer's agent will advise the buyer to write an offer that reflects current market conditions. The buyer ’s agent will provide a list of the best professional vendors to choose from to keep the transaction as smooth as possible. The buyer’s agent will guide the buyer through all the steps from inspection to closing. The buyer’s agent will work tirelessly to ensure that the buyer maintains their creditworthiness until they arrive for the closing and the transaction is funded. If you've made it this far, we appreciate you. Keep reading! Let's talk Coopertive Compensation and/or Seller Concession options: Three fundamental choices for sellers: 1. Authorize it. 2. Don’t authorize it, but be willing to consider it. 3. Don’t authorize it, and don’t consider it. Authorize to offer it. I want to generate the widest pool of buyers that brings me the best price and terms with the least amount of hassle. I accept the potential risk that I could be offering more compensation than the buyer has agreed to pay the buyer’s agent because I want to attract the largest pool of buyers. It’s estimated as much as 40% of the market would be challenged to pay the buyer’s agent out of pocket. Many first-time buyers and move-up buyers would be challenged, and anyone using a VA loan would currently be denied that option. Don’t authorize it, but be willing to consider it in an offer. I am willing to keep my options open to paying it or not. I accept the potential risk of exposing my property to a smaller pool of buyers because some buyers who need it may not ask if it’s available and may assume it’s not. Additionally, I accept the potential risks, if a buyer doesn’t have representation, of encountering more hassles and more delays. Don’t authorize it, and don’t consider it. I am unwilling to pay it. I accept the potential risk of exposing my property to a smaller pool of buyers because a buyer who needs it may not make an offer. Additionally, I accept the potential risks, if a buyer doesn’t have representation, of encountering more hassles and more delays. These strategies are designed to produce the highest seller net, but seek to do it in two different ways: increase the pool of buyers or decrease the cost of sale expenses. Increase the pool of buyers: the first aims to net the most amount of money by creating the largest pool of buyers. A larger pool creates the opportunity for the most demand. The most demand for the home should deliver the highest price. Decrease the cost of sale expenses: the second and third aim to net the most amount of money by trying to lower the cost of sale fees associated with the sale.
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