fbpx

Tag: home ownership

Start Your Home Search for the New Year

Posted on by Stephanie Aviles

Get a head start on finding the home of your dreams in the New Year! January and February are the ideal months to research the market, define your priorities, set a budget, and be ready to spring into action when availability blossoms in the Spring. We want to share insider tips on navigating Philly’s real estate market.

Timing is everything. It’s no surprise that housing prices tend to be lowest in January, as well as inventory availability. Both are at their highest come April. But that doesn’t mean you should wait until Spring to begin researching prices, locations, and availability.

If you are a first-time buyer, you want to focus on your ability to secure a mortgage first. Without that first step, going to open houses is like asking to see the menu in restaurants where you can’t afford the tab! Another reason to line up a mortgage first? You want to know how much house you can afford before you start to look.

According to Realtor.com, the median sale price of a Philly home was $260K and the median listing price was $270K in November 2024. However, Zillow reports that the average home value in the Philadelphia-Camden-Wilmington area stands at $343,102. When you think about price, think of location. While there are row houses in an affordable price range in Pennsport, Greys Ferry, and West Philly, prices are higher closer to Center City and in trendy neighborhoods such as Fishtown, Kensington, and East Passyunk. If you work remotely, the best values are just outside Center City where you can get more houses (and yards) for your money such as Lansdowne, East Falls, Germantown, Roxborough, etc. For instance, a BelLa Vista 3 bed, 3.5 bath home with a roof deck and yard is asking $739,900 while the median purchase price in Roxborough is $249,267.

A Philly home in the winter. Image: Cara Stapleton for Solo Real Estate.
A Philly home in the spring. Image: Cara Stapleton for Solo Real Estate.

Once you know how much house you can afford, cast a wide net to start. Look at listings in various neighborhoods. If you are unfamiliar with an area, go there during the day, at night, and also on weekends to get a feel for the community. Is it quiet, noisy, well-lit, or dark? Engage homeowners in conversation. 

On the other hand, if you are currently renting in a neighborhood you love and are ready to buy, you’ve saved a lot of time. In Philly, the cost of renting is higher than the cost of buying a home (and building equity). 

Knowing what kind of community you prefer is key. Condo owner Stephen Tenner moved here from Brooklyn. “I made my way specifically to West Mt. Airy. It has a progressive, liberal feel just like Park Slope where I lived. I love the old houses, Weavers Way Coop, and that it’s interracial and inclusive. Wissahickon Park is nearby and I walk miles every day.” When he doesn’t want to walk, a SEPTA train station is around the corner.

Howard Silver, on the other hand, has no regrets about his two-bedroom condo at William Penn House. “Everything I want is here. Di Bruno’s is across the street. Rittenhouse Square is a block away. I walk to the Kimmel, Wilma, and Suzanne Roberts. What’s not to like?”

Before you talk to a realtor, make a list of your priorities. What are some musts and what are some things that would be a nice-to-have?

  • Number of bedrooms and bathrooms
  • Garage or off-street parking
  • Roof Deck
  • Energy-efficient appliances or sustainability features
  • Yard
  • Access to Public Transportation
  • Walkability
  • Closeness to dog parks, schools, eateries, cafes, etc.
  • A fixer-upper or in perfect condition?

Remember, not every house will be “staged” like a reality TV show!  Unless you are looking only at newly renovated, unfurnished homes, be prepared for furnishings, rugs, and light fixtures that may not be your style. Or a bathroom that reminds you of your grandmother. The ability to re-imagine the house with the changes you require (and their cost) will save you money and time.

The City of Philadelphia’s Philly First Home Program offers a grant of up to $10,000 (or 6% of home price) to help first-time, home buyers with down payments and closing costs. You may also ask your lender about state grant programs.

Rather than chatting with mortgage lenders or Nerd Wallet on your cellphone, start with a financial institution with which you have a relationship. That could be your credit union or bank. They will walk you through your options, including conventional mortgages, VA mortgages,  FHA Home Loans, and USDA Mortgages. They will also introduce you to mortgage calculators.
For instance, current mortgage rates in Philadelphia, PA are 6.692% for a 30-year fixed, 5.785% for a 15-year fixed, and 7.164% for a 5-year adjustable-rate mortgage (ARM). 

Finally, working with a qualified real estate agent – one who knows the neighborhoods that interest you –  will make the process of buying your first or second home easier. Reach out to one our agents to get started!

Mortgage rates are falling. Should you consider refinancing?

Posted on by Stephanie Aviles

It’s Fall and interest rates are dropping with the autumn leaves. So, does this mean you should refinance your mortgage? That depends on several factors. Let’s take a look at them and see how they add up for your particular situation.

Forbes says if your mortgage rate is 7% or above, refinancing makes sense, but if your current rate is 6.5% or lower you should hold on until 2025 when rates are expected to drop even lower. However, the change in interest rate shouldn’t be the only factor to consider, the cost of refinancing includes the following:

  • Government recording costs.
  • Appraisal fees
  • Credit report fees.
  • Lender origination fees.
  • Title services.
  • Tax service fees.
  • Survey fees.
  • Attorney fees.
  • Underwriting fees.

Because of all these costs and fees, many mortgage experts say refinancing only makes sense if you can get a rate that’s at least 1% lower than your current rate. Not just half a percent. A recent article in the Washington Post agrees. “In most cases, it doesn’t make sense to refinance a mortgage until the rate has dropped a full percentage point below your current rate. Once that happens, you can compare the amount your mortgage payment will drop against the closing costs you’ll have to pay to refinance.” 

Here are some steps you can take to lower your refinance rate:

  • Get rate quote estimates from three to five lenders
  • Ask lenders about waiving or reducing closing costs
  • Negotiate with your lender to match the best deal
  • Take steps to strengthen your credit score
  • Save for a larger down payment
  • Choose a shorter-term loan

However, if you got your mortgage during the pandemic when rates dropped to a historic low of 2.65% in 2021, consider yourself lucky and stay put. But if your current rate is over 6%, you need to consider how much time it will take for your savings to outweigh the refinancing costs. If your monthly payments cover those costs for two years or less, it’s probably worth it. On the other hand,  if you’re thinking about moving in a year or two, it might not be worth it. 

Another consideration is the increase in home values. For example, if your home’s value increases, you may qualify for a better rate.  If your credit score has improved since your original mortgage, you might qualify for more favorable terms. Even a small boost in your score could translate to big savings over your loan’s lifetime. 

“If rates continue to come down there could be a lot of additional buyer competition in the market, which could drive up prices,” said Solo agent, Alejandro Franqui. “That suggests that there is a sweet spot where rates are now more manageable, but prices haven’t started to accelerate yet.”

Headshot of Solo agent Alejandro Franqui
Solo agent Alejandro Franqui suggests it could be a good time to refinance while mortgage rates are down and before home prices increase. Image: Happy Hour Headshot.

No one has a crystal ball, but economic forecasters predict we’re in the early stages of a rate-dropping cycle. The Federal Reserve could continue to drop rates for the next 12 months or longer. On the other hand, waiting comes with risks. If you bought at peak rates and have a sizable loan, refinancing now could start saving you money. Waiting may lead to better rates — but future market conditions are uncertain so we recommend weighing your options to make an informed decision based on what makes sense for you now. 

From Renting to Buying

Posted on by Solo Team

Renting is an excellent option until it is not. Your one or two-bedroom apartment suddenly no longer fits your lifestyle due to marriage, the birth of a child, or the realization that working from home opens the possibility of living just about anywhere. Perhaps in a neighborhood where parking does not require divine intervention, or simply because you want more amenities and a strong community like Rebecca, a longtime renter of 14 years, who made the switch to homeowner when she found a perfect fit in Kensington Yards, Solo’s condo project. Whatever your reason for making the transition from renting to buying, an experienced real estate agent can help guide you through the process and ensure everything runs smoothly.

How much house can you afford?

“First-time buyers in Philadelphia have many options in the $250,000-350,00 range,” said Solo Real Estate agent Alejandro Franqui. “In your late twenties, a two-bedroom, two-story house in Fishtown or Point Breeze will work for you. When you outgrow it, you can sell it and buy a larger house or it can become a very rentable investment property.” Unlike rent payments, monthly payments towards a mortgage can become a good long-term investment, generating passive income when you decide to find another home. 

An example is a two-bedroom house listed for sale at 1491 East Wilt Street in Fishtown/East Kensington listed by Solo agent Jeff Carpineta. The living room has great natural light and the kitchen features new appliances including a granite wrap-around counter and stainless fridge. But the real selling point is the great neighborhood within walking distance of trendy restaurants, yoga studios, and parks.

Get pre-approved

To find out your price range, including your down payment, start by reviewing your credit report on Experian, TransUnion, or Equifax.  Next, talk to lenders to determine the mortgage rate for which you qualify. Be prepared. Banks will ask for your W2s, your last couple of years of tax returns, bank statements, and pay stubs. The goal? To be pre-approved for a mortgage before you start looking at houses. Pre-approval doesn’t mean you’re applying for a mortgage — just getting an idea of what you’re approved for. 

Now ask yourself, how much of your monthly income are you planning to spend on your home? Make sure your answer isn’t dependent on factors over which you have no control, such as fluctuations in the stock market, the economy, job loss, or inheritance that could go into litigation or simply evaporate. 

To get an idea of what you can afford, try Nerd Wallet’s Online Calculator. It uses basic questions – household income, credit score, expenses, desired Zip Code – to compute how much you can spend on a house and what your monthly mortgage payments will be. Transunion recommends keeping your total housing payment under 28% of your gross monthly income. (i.e. Say your family’s monthly gross income is $7,000, you want to keep your total housing payment including taxes under $1,960). Down payments are another factor. 20% is standard but buyers often put down 10% or less. FHA borrowers might put down as little as 3.5%. 

Select an Agent

Ideally, you want an agent with a solid track record in the neighborhoods you are considering, as well as one who is familiar with your current location. With 70 years experience in Philadelphia, the agents at family-owned Solo Real Estate have the inside track on the City’s best values and neighborhoods. 

As a result, Solo agents know a lot more than you see online. They know which areas have already peaked in home value and which are on their way up. They have also built relationships in neighborhoods across the city and can sometimes find homes before they hit the market, giving you a leg up in a competitive sellers’ market. More importantly, they have access to MLS (a Multiple Listing Service that provides information about properties for sale) and to “comps,” the history of sale prices in the area in which you want to buy. When it comes to negotiating with the seller, your agent will get you the best possible price. 

Inspection

Think of inspection as bringing the person you love home to meet your parents for the first time. You are head over heels with the house of your dreams. It has everything on your wishlist. Hardwood floors, good lighting, a modern kitchen, roof deck, and parking space. Then comes the inspection to point out all its hidden flaws. Trust your agent to analyze the information. It may be a dealbreaker. Or an opportunity to ask the owner to make improvements and/or lower the price.

Closing

The closing process begins when you have signed a purchase and agreement of sale. From the signing date to the closing date can take four to six weeks. During this time, purchasing funds are held in escrow, where your money is safe until the deal is officially done. Within 24 hours prior to settlement, you and your agent will do a final walk-through to make sure the seller has completed all of the repairs required and there are no additional repairs needed. This is your cue to flush toilets, run garbage disposals, and exhaust fans, open garage doors, etc.  On settlement day, you’ll either sign your paperwork electronically or safely meet with your agent and a representative from the title company to sign and get the keys. 

Once your paperwork is done, and you have the keys, pop open that bottle of Champagne and celebrate. Your new home awaits! 

Looking to make the transition from renter to homeowner? We can help! Learn more about our buying services here, and contact us for more information.

A Guide to Your Philadelphia Home’s History

Posted on by Solo Team

Does your home have an intriguing history? Would you like to know who were its first tenants? If so, the City of Philadelphia makes it easy to trace your house’s past via maps and archival documents, including deeds that go back to 1683. Below is a list of local resources you can use to find more information about the history of your home.  

Philadelphia City Archives

If your house was built prior to 1955, start with Philadelphia City Archives at 548 Spring Garden Street. There, archivists will conduct a detailed search for historical materials relating to the address you provide and present you with the appropriate files. You never know what you will find. The records may contain handwritten deeds, transfers of property, or architectural renderings. If you are a fan of Finding Your Roots, the PBS program that delves into genealogy, you will love the City Archives. To schedule a visit, call 215-685-9401.

Besides recording deeds, the City Archives maintain a Photo Archive of two million photographs, dating from the late 1800s, including images of the City’s architecture, industry, and culture. Tap into this fascinating resource to trace the changes in your neighborhood.

Philadelphia Department of Records

If your home was constructed between 1956 and the present, go to City Hall Dept. of Records. Since this office also contains records of births, deaths, and marriages, it may involve a longer wait than the City Archives. However, if you are nimble with technology, you can access digital property deeds online from 1683 through 1974 at the Philadelphia Dept of Records. Be prepared to buy a subscription to conduct a search and wade through a complex system of deed books. 

These deed books provide a wealth of information regarding the ownership and use of real estate in Philadelphia. The standard deed includes information on the date of the transaction, the names, residences, and occupations of the buyer and seller, the sale price, a survey description of the property usually with an indication of whether there is a building on the property, a description, called a recital, of how the seller acquired the property.

Free Library Interactive Digital Mapping Tool

If you want to see how your block or neighborhood has changed over the years, the Free Library offers an interactive digital mapping tool, dating back as far as 1843. These are no ordinary maps! They include 19th-century maps of whiskey warehouses, Fairmount Park, horse car routes, and atlases of the City by wards.

Philadelphia Historic Commission

To find out if your property is registered as historic, to nominate a property, or to apply for a historic plaque, contact the Philadelphia Historic Commission. Besides designating individual properties, the Commission also lists Historic Districts and offers manuals for homeowners in those neighborhoods. Besides the usual suspects, Philadelphia’s Historic Districts include West Girard Avenue, Diamond Street, Parkside, and many other architecturally significant areas.

Looking for a home with a history? 171 Poplar Street is an 1843 Federal-Style Townhouse in Northern Liberties available for sale through Solo Real Estate.
171 Poplar Street is an 1843 Federal-Style Townhouse in Northern Liberties available for sale through Solo Real Estate.

Philadelphia Architects & Buildings

Philadelphia Architects & Buildings is also a helpful online tool to learn about the architect who designed your home. Hosted by the Atheneum, you simply enter the property’s address or the name of the architect. If there’s a match, you will have access to the architect’s resume, along with the locations of other properties he designed with dates and photos. To gain access without signing up for a subscription, sign in as a guest. 

Whether you have an old home or are looking to purchase a new place to call home, researching the property’s history can be an important step in determining its value and preserving its architectural integrity.

Fall Home Maintenance Checklist

Posted on by Solo Team

It’s officially the first day of fall –  the perfect time for pumpkin spice lattes, haunted hayrides, and fall home maintenance. While it might take a little more time for the weather to start cooling down, winter is just around the corner, and being prepared can save you time and money. We know managing the care and upkeep of a property is no easy task. Homes require ongoing supervision and maintenance to ensure that everything is working properly but there are some simple things you can do to prevent unexpected and costly repairs during the winter months. Our fall home maintenance checklist includes simple tips to ensure you’re prepared and your home runs smoothly during the winter months ahead.

 

Schedule Furnace or Boiler Maintenance

Schedule Furnace or Boiler Maintenance

Home heating systems involve many complex components. Just like you would change the oil or air filters in a car before a long trip across the country, homeowners should start the winter with a serviced heating system. We recommend contacting a certified heating contractor. An annual service visit usually runs around $100 in the Philadelphia area, while the peace of mind that comes with knowing that a trained professional has given one of your most expensive home mechanical systems a passing grade is priceless. However, for the intrepid DIY-er, we recommend at a minimum, changing the filters for a forced-air heating system, bleeding the radiators for a boiler system, and checking the batteries on your digital thermostat.

Apply Caulk and Weatherstripping to Prevent Drafts

Apply Caulk and Weatherstripping to Prevent Drafts

Keep the warm air inside and the cold air outside by checking to ensure that the weatherstripping around your doors is in good shape. Repair or replace damaged caulk or weatherstripping. Even small gaps can bring in a good amount of cold air. Installing door sweeps in your home this fall can also prevent chills from entering the home through the slim space beneath the door. If you have older windows in your home, you may want to consider picking up a window insulation kit and covering them with plastic insulation. The process takes about ten minutes, a pair of scissors, and a hairdryer, and can keep you feeling cozy all winter long.

Drain the Hose and Shut off the Water Line

Drain the Hose and Shut off the Water Line 

For homeowners with gardens, it’s important to prevent freezing the pipes which supply the hose line. Shut off the access to the hose (in Philadelphia, most water lines are accessed in the basement). Then drain the remaining water and disconnect the hose and bring it inside for the winter.

Empty Flower Pots and Prune Trees

Empty Flower Pots and Prune Trees 

While you’re outside, take some time to empty the soil from your ceramic pots. Rapidly cooling and rising temperatures, which are common during Philadelphia winters, can cause cracking in all sorts of things (roads especially). Protect your pots so you can use them for spring flowers by clearing out the soil and trimming your trees one last time before the winter months.

Clear Gutters and Drains

Clear Gutters and Drains 

For homeowners living in neighborhoods with even a moderate amount of tree cover, it’s important to make sure that gutters are cleared of leaves and debris. A buildup in your gutters can cause issues with the roof (flat roofs in particular) or cause water to spill over the gutter and freeze on the sidewalk, creating a tripping hazard. Also, for homeowners with drains in their front or back yards, it’s important to look and make sure they’re clear of debris. A blocked yard drain can turn your backyard into a skating rink and contribute to clogs in the drain line. You may also want to consider installing gutter guards. While it won’t completely eliminate the need to clean your gutters, they prevent larger items from falling in and can reduce the frequency in which you’ll need to clear them.

Inspect and Replace Winter Supplies

Inspect and Replace Winter Supplies 

Don’t forget to replace old snow shovels, ice scrapers and purchase ice melt before the snowy weather arrives. We recommend seeking out a pet-safe ice melt as some can cause irritation and other issues for our furry friends. If you use a snowblower during the winter, now is the perfect time to inspect it and make sure it’s running smoothly.