Philadelphia Rent Growth Slows Down

The Rent trend data in Philadelphia, Pennsylvania

Philadelphia Average Rent

As of October 2017, average rent for an apartment in Philadelphia, PA is $1580 which is a 15.38% decrease from last year when the average rent was $1823 , and a 0.44% decrease from last month when the average rent was $1587.

One bedroom apartments in Philadelphia rent for $1404 a month on average (a 17.95% decrease from last year) and two bedroom apartment rents average $1738 (a 21.35% decrease from last year).

Beds Rent
All beds 1,580
1 beds 1,404
2 beds 1,738

Philadelphia Average Rent By Neighborhood

Neighborhood Rent
Fairmount-Spring Garden 2,193
City Center West 2,109
Riverfront 2,073
City Center East 2,056
North Central 1,851
Poplar-Ludlow-Yorktowne 1,835
Wharton-Hawthorne-Bella Vista 1,823
Cobbs Creek 1,623
Fishtown 1,588
Schuylkill Southwest 1,557
South Philadelphia 1,532
Hartranft 1,524
Chestnut Hill 1,520
Kensington 1,464
Pennsport-Whitman-Queen 1,436
Wynnefield 1,410
Manayunk 1,395
Belmont 1,384
Roxborough 1,311
East Falls 1,305
Brewerytown 1,300
Point Breeze 1,261
Girard Estates 1,215
Alleghany West 1,208
Marconi Plaza-Packer Park 1,195
Holmesburry-Torresdale 1,160
Mount Airy 1,152
Eastwick 1,075
Torresdale 1,074
Richmond 1,022
Germantown 1,006
Academy Gardens 1,006
Summerdale 1,000
Strawberry Mansion 975
Bustleton 965
Morris Park 947
Somerton 944
Cedar Brook 924
Oxford Circle 917
Mayfield 912
Grays Ferry 899
Tioga-Nicetown 882
Byberry 880
Haddington-Carroll Park 877
Fox Chase 873
Rhawnhurst 859
Oak Lane 824
Wissanoning 798
Hunting Park 794
Logan-Fern Rock 794
Fairhill 789
Olney 767
Frankford 761

The most expensive Philadelphia neighborhoods to rent houses in are Fairmount-Spring Garden, City Center West, and Riverfront.

The least expensive Philadelphia neighborhoods to rent houses in are Frankford, Olney, and Fairhill.

Can I Sell My House Without a Real Estate Agent?

Selling your house in Philadelphia can be emotional and stressful, as you’re likely selling your most valuable asset. If you’re thinking about selling your home in the Philadelphia, PA area without the professional guidance of a real estate agent, you could be adding an additional level of complexity to the  process — or streamlining the overall experience. You can sell your house without using a licensed agent, but it’s best to learn the pros and cons of selling a home by yourself, and which option is best for your situation.

The advantages of Selling a House by Yourself In Philadelphia.

Selling your house is perhaps a match for you in the event you have an up to date home, stay in a strong market and aren’t in an enormous hurry to leave. Below are the highest execs of promoting your home by your self.

  • Potential worth financial savings. One of many main causes Sellers select to sell their properties by themselves is to save lots of on the fee an actual property agent makes from the sale, which is normally between 5 to seven %. In line with Zillow, the median Philadelphia residence worth is $219,600, that means a possible fee financial savings of roughly $13,336.
  • Inherent property information. As home-owner, you recognize the home higher than an actual property agent ever will. You may spotlight the property’s finest options and tackle how they may profit the subsequent homeowners. Moreover, you don’t have to fret about any amenity highlights getting misplaced in translation between you and a list agent.
  • Full management of the promoting course of. Should you promote your house by your self, you’ve got full management all through the promoting course of, together with setting the worth, controlling displaying availability, deciding when to listing, how you can stage and extra. Additionally, you will be straight concerned within the negotiation and may set up the phrases of the deal, first-hand.
  • Skill to cost competitively. With the financial savings from the fee, promoting your house by proprietor can present the flexibleness to cost your house decrease than an actual property agent would. This financial savings may be the deciding issue between a purchaser selecting your house over a home with related comps that’s listed by an actual property agent. This additionally provides you extra room to barter closing prices.

Negatives of Selling a House by Yourself.

Selling your house is a gigantic endeavor, and is a course of that would considerably profit from the skilled steerage of licensed  real estate agent.  Brokers research the native market, perceive the comps and have a powerful understanding on pricing. Under are the highest cons of promoting your home by your self.

  • Emotional attachment. Should you’re promoting your house by your self, it’s necessary to separate your self emotionally from the home all through the promoting course of. If may be straightforward to be offended by low gives and be tougher to supply concessions through the negotiation course of. An actual property agent may be your finest ally through the promoting course of and negotiate as a impartial occasion, whereas holding your finest pursuits at stake.
  • Time Savings. Between advertising the home, organising showings, negotiating and shutting the deal, promoting your house could be a important time funding. Enlisting the assistance of an actual property agent within the Phoenix space can guarantee all these steps are dealt with professionally.
  • Lack of Buyers. Actual property brokers have entry to a mess of selling assets to assist your house attain goal patrons. Brokers can publish properties on the A number of Itemizing Service (MLS), which permits different native brokers to entry property info to share with their patrons, and can normally develop a complete advertising marketing campaign particularly designed to promote your home, comparable to customized collateral, on-line advertising, social media promotion, open homes, entry to skilled residence stagers, pictures, digital excursions and extra.
  • Lack of market information. Promoting your house by your self requires you to have a powerful information of the native market and how you can worth your house. Not having a complete understanding of the present residence values could lead to you overpricing your house and being unable to promote, or underpricing your home and promoting for too little.

    Relying in your promoting motivations, promoting your house by your self comes with many various execs and cons. Fastidiously weigh each choices and decide which works finest together with your way of life earlier than selecting to promote by your self, or to enlist an actual property agent.

When Is The Best Time to Sell Your Home in Philadelphia?

When Is The Best Time to Sell Your Home in Philadelphia?

 

When is the best time to reach the most prospective buyers in YOUR market? And when will it be the easiest on you? In our latest post, we will help you figure out when it’s the best time to sell your house!

The Best Time to Sell Your Home in Philadelphia

What the stats say:

Nationally, homes listed between May 1 and May 15 sold around nine days faster and for nearly 1% more than the average listing, according to Zillow.com

Saturday is the most popular day of the week, as that is when people have the time to look for a new home. And since listings often appear with the newest ones first, getting yours at the top of the list will help you to get more views.

Is there a particular time of year that is better? 

They always say people are buying in the spring and summer. School is over, relocating is easier and the weather is conducive for going house hunting. Statistics show more people are buying in the Summer, so you will likely have MORE buyers! Start with cleaning to stage your home, and get ready to list it sometime in Spring.

Of course, if you are selling a home you own that is located in a warmer climate, cold weather isn’t as much of a factor.

Are you ready to sell your Philadelphia house?

Ask yourself, “Am I financially ready to sell.” There are costs associated with selling your home such as repairs, clean-up, staging and making it look sharp. Do you need to move in a hurry? Or be able to get financing for a new home? If so, this can add pressure which will stress you out and sometimes make you sell.

Are you and your family emotionally ready? If the move isn’t necessary, make sure it’s really the best time to go. Are your kids almost out of school? Are you certain you want to leave your friends, job, and community? Make sure you are making the right choice before making such a big decision for your family.

 

Are you interested in selling your Philadelphia home? If so, we can help you sell your house fast! Send us a message now or give our team a call! We are ready to answer all your questions so you can sell your Philadelphia home fast! (215.650.7403)

 

Do I Have To Pay Inheritance Tax When I Sell My House In Philadelphia

As of 2016, only 8 states still charge inheritance tax. Even if you live in one of those states, some beneficiaries to an inheritance are exempt from paying it. Do you have to pay tax on an inherited property in Philadelphia? The following will help determine if you do.

What is inheritance tax?

Once the executor ( Person who has been appointed to manage the cash. Can be a family member or not) of the estate has divided the assets up and distributed them to the beneficiaries, the inheritance tax comes into play. The tax amount is calculated individually for each individual beneficiary, and the tax must be paid by the beneficiary. For example, a state may charge a 7 percent tax on all bequests larger than $2 million. Consequently, if your friend leaves you $5 million in his will, you just pay tax on $3 million, which is $210,000. The state would require you to report this information on an inheritance tax form.

The executor or administrator of an estate typically fills out the inheritance tax return forms on behalf of the beneficiaries. He or she only needs to complete one form, even if multiple people owe the inheritance tax. The tax form can be very complex; working with an experienced attorney will help you know for sure that the proper tax is paid.

After the form is completed, the executor usually pays the tax from the estate before the remaining amount is distributed to the beneficiaries. The executor or administrator has nine months from the date of death to pay the tax. Otherwise, a late penalty may be assessed.

The Difference Between Inheritance Tax & Estate Tax

The major difference between estate taxes and paying tax on an inheritance depends on who’s responsible for paying it. An estate tax is imposed on the value of property and a deceased person’s money and is paid out of the decedent’s assets before any distribution to beneficiaries.

Before an estate tax is due, the value of the assets must exceed certain thresholds that change yearly, but usually it’s at least $1 million. Because of this high threshold, Roughly only 2 percent of citizens will ever have to pay this tax.

how does inheritance tax work

 

States with an inheritance tax

The federal government does not collect inheritance tax. It IS ONLY AT THE STATE LEVEL – The eight states that collect inheritance tax are Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania and Tennessee. All state laws are subject to change at anytime, so always check with your state’s tax bureau. The tax rates   can be as low as 1 % or as high as 21% of the value of property and cash you are inheriting. Please check the chart for your state.

 

Inheritance and estate taxes are one of the most hindering taxes for economic growth and have been shown to suppress entrepreneurship, and have heavy compliance costs.

 

The Stepped-Up Basis Rules Change Those Who Inherit Property

Step up in basis is the readjustment upon inheritance of the worth of an appreciated asset for tax purposes, discovered to be the higher market value of the asset at the time of inheritance. When a house is passed on to a beneficiary, its worth is usually more than when the previous owner bought it. “Basis” means the asset’s price used for tax purposes. To ascertain whether you’ve a gain or less when you sell an advantage, its basis is subtracted by you from the sale cost. You’ve got a gain if you’ve got a positive number. You’ve got a loss, if you’ve got a negative number.

The basis of a dwelling you construct or purchase is its price, plus any improvements you make while you possess it.

Nevertheless, the tax basis of a home’s is established after the owner dies otherwise when someone inherits a house. This implies that the price for tax purposes of the home’s isn’t what the -deceased earlier owner paid for it. This will typically be more than the earlier owner’s basis.

The bottom line is that if you after sell it and inherit property, you pay capital gains tax based just on the worth of the property as of the date of death.

Example: Jean inherits a house from her dad John. He paid $100,000 for it over 20 years past. John made $20,000 in progress over the years, so his ‘s tax basis in his house just before died was $120,000. However, when the house is inherited by Jean its basis is stepped-up to its fair market value on the date of the departure of John. Jean has the house appraised and this value is set at $300,000. The house is sold by jeans for $310,000 a few months after she inherits is inherited by her. $300,000 is her tax-basis on the house. She subtracts this amount from the sales price to establish her gain that is taxable: Sold price of 310,000 – $300,000 = $10,000 gain.

If you sell an inherited dwelling for less than its stepped-up basis, you’ve got a capital loss that can be deducted (assuming you do not use the dwelling as your private residence).

However, there is a max of $3,000 of total losses can be deducted against your income every year. Any excess must be spread out and deducted on future tax years until the total amount is deducted.

 

Inheritance tax exemptions in Philadelphia, PA

Depending on your own relationship to the decedent, you may receive an exemption or decrease in the amount of inheritance tax you must pay. For example, Philadelphia, Pennsylvania exempt a partner from the tax when the property is inherited by them from their partner. ( Husband or Wife – Up to the First $30,000) 

The tax rate for Pennsylvania inheritances depends upon how close the familial connection is between the deceased person and the person receiving the inheritance. No inheritance tax will be owed if the beneficiary is:

  • A surviving spouse of the deceased
  • A parent of a deceased adult child
  • A charitable organization

There are also classes of people deemed to be close familial relations of the deceased; however, they do owe an inheritance tax. These individuals include children of the deceased and parents of a minor; they are considered “Class A heirs,” and they owe a 4.5% inheritance tax on the amount they receive.

“Class B heirs,” such as siblings of the deceased, owe a 12% tax rate. All other beneficiaries pay the collateral tax rate of 15 percent.

Rates for Inheritance Tax

 

The rate of tax imposed on transfers to or for a surviving spouse are based on the date of death of the decedent and taxed as follows:

 

Dates of Death Rate
Prior to July 1, 1994 6%
July 1, 1994 through December 31, 1994 3%
January 1, 1995 and after 0%

http://secureprod.phila.gov/wills/inheritancetax.aspx

 

  • We are not Attorney’s and this is not to be accepted as legal advise, we always recommend seeking counsel from an experienced Attorney to assist with your inheritance. 

New Philly Housing Market Data

We have been waiting for new “Accurate Date” on the Philadelphia housing  market and received the following from Philly.com. This is great data to base your investment strategy on!

 

“You may have noticed that this section has not posted monthly data on rent trends in Philadelphia since April.

We explained the reason why in our April 11 post reporting on rental trends as reported by the three major apartment search sites: Zumper, Apartment List and Abodo. Put bluntly, there was no way of knowing whether the data sources were any good, as all three based their reports on data available only to them.

This state of affairs apparently caused some concern over at Apartment List, because in late May, the San Francisco-based apartment search site announced a complete revision of its methodology.

What Apartment List did was change the source of its data to reduce sample bias. The proprietary databases used by all three of the major search sites rely mainly on apartment listings posted online, which tend to skew towards the upper end of the market. And because the listings posted vary widely from month to month, without some sort of correction to remove the noise those variations produce, the changes — especially year-over-year ones — will swing wildly.

So Apartment List opted to take a hybrid approach by combining Census data from the American Community Survey, which collects data on a wider range of units, with its own same-unit analysis of listings in its database to extrapolate changes in rent from month to month and year to year.

 

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This approach produces noticeably lower rent figures in the cities the site surveys. In some of the more expensive markets, the difference is dramatic; here, it’s not quite as great — about $500 per month — but it’s still noticeably closer to the figures based on Census data, which the Department of Housing and Urban Development (HUD) also uses to determine rent subsidies.

“We spent roughly six months researching and implementing the methodology changes that we rolled out last month, and are making ongoing efforts to continuously refine our methodology and improve the accuracy of our estimates,” said Apartment List data scientist Chris Salviati. “We now use data from the Census Bureau’s American Community Survey (ACS) as the base for our estimates – we chose to use this data because the survey methodology used by Census results in a broad sample that is representative of all property types and geographic locations within a city, instead of skewing toward the luxury units and trendy neighborhoods which are overrepresented in private listing data.

“As a result, our new estimates are notably lower than previous estimates in most cities, but we’re confident that we’re now presenting a more complete and accurate picture of the rental markets in each city.”

Last month, according to the new methodology, rents in Philadelphia increased 0.3 percent from the previous month and 2.1 percent from the previous year. Both figures are below the national figures of 0.5 and 2.9 percent, respectively. The median rent for a two-bedroom apartment in this market stands at $1,160, a figure slightly above the national median of $1,150 but more affordable than in many other large cities, according to Apartment List.”

Taken from  http://www.phillymag.com/property/2017/07/19/at-last-more-accurate-rent-data/#F8PBu7vsA2ByBpJ1.99

Vacant Land For Sale By Owner Philadelphia

Vacant Land For Sale By Owner Philadelphia

If you’re thinking about buying land, you have a couple of options. You could try to acquire raw land by watching for t in a listing service and buying through an agent, or you could buy vacant land for sale by owner Philadelphia directly. In this blog post, you’ll read about 3 reasons why you should buy raw land from the owner directly.

 1. More Inventory

If you buy raw land through an agent, you’re stuck with whatever land the agent can find, which they’ll usually find by accessing a listing service like the MLS. This severely limits the amount of raw land that you can choose from.

However, if you change your perspective and start looking around for vacant land for sale by owner Philadelphia , you’ll have so much more land to choose from. In fact, you might be surprised at the amount of choice vacant land available!

2. Quick Purchase

If you take the “buy & hold” approach to buying vacant land only through an agent, you’re going to be stuck with whatever land is listed. Sure you might get lucky and find raw land right away but you’ll often end up waiting months for the “perfect” investment to come along.

However, if you take a different approach and buy vacant land for sale by owner Philadelphia you’ll have the confidence to move off of the limited listing service and instead find land owners yourself who are eager to sell their land but who chose not to list. That way, you can find more properties, faster.

3. Seller Financing 

Buying land through an agent usually means the selling agent will require proof of funds and will demand that you have a mortgage or cash in place before you buy. This can severely limit how much raw land you can buy at one time.

However, if you invest in vacant land for sale by owner Philadelphia , you often have a greater amount of choice when it comes to financing. In fact, you might even be able to get seller financing directly from the seller. (This won’t always be the case but it’s far more likely when you buy from the owner directly).

Summary

Many vacant land investors don’t want to get caught up in all of the annoying hassles and hoops that they have to go through in order to buy vacant land through a real estate agent. They’d rather just buy the land and start using it or developing it the way they want to. If that describes how you want to invest, then buying vacant land for sale by owner Philadelphia might be the right choice for you.

Click here now and fill out the form to see what’s available in terms of vacant land for sale by owner Philadelphia. Or, call our office at 215.279.4315 and speak to us directly

 

Don’t Sell Your Philadelphia Property Without It

Don’t Sell Your Philadelphia Property Without It

For most individuals, the prospect of selling their Philadelphia house may be positively daunting. To start with, there are often loads of issues to do exactly to get it prepared for the market. Moreover the normal clean-up, paint-up, fix-up chores that invariably wind up costing greater than you deliberate, there are at all times the overriding considerations about how a lot the market will bear and the way a lot you’ll ultimately wind up promoting it for.

Will you get your asking worth, or will you need to drop your worth to make the deal? In any case, your private home is a significant funding, little question a reasonably massive one, so with regards to promoting it you wish to get your highest attainable return. But despite everybody’s want to get the highest greenback for his or her property, most individuals are extraordinarily uncertain as to the way to go about getting it. Nevertheless, some savvy sellers have lengthy recognized somewhat monetary approach that has helped them to get high greenback for his or her property. In reality, on some uncommon events, they’ve even bought their properties for greater than they have been value utilizing this highly effective financing device. Though that is likely to be the exception reasonably than the rule, you’ll be able to definitely use this method to get essentially the most cash attainable when promoting your property.

Vendor carry-back, or take-back financing, has confirmed to be a straightforward approach for closing offers. Regardless that most individuals don’t take into consideration with regards to promoting a property, they actually ought to think about using it. Based on the Federal Reserve, there are at the moment over 100 Billion of vendor carry-back (vendor take-back) loans in existence. By any normal, that’s some huge cash. However most significantly, it is usually a really clear indication that extra individuals are beginning to use vendor take-back financing methods as a result of it provides many monetary advantages to each sellers and patrons. Mainly, vendor take-back financing is a comparatively easy idea. A seller-take again mortgage is created when a property is bought and the vendor performs like a lender by aiding in financing all or a part of the overall transaction. In impact, the vendor is definitely lending the client a sure sum of money towards the acquisition worth, whereas a standard mortgage firm often funds the stability of the acquisition worth. A vendor take-back mortgage is secured with the property. The mortgage then turns into the first mortgage and is absolutely secured by the property. In most vendor take-back financing transactions, the client repays the vendor with curiosity in accordance to mutually agreed phrases over a time period. Normally, the phrases name for the client to ship the funds, consisting of principal and curiosity, on a month-to-month foundation. That is advantageous as a result of it creates a gradual month-to-month money movement for the word holder. And if the word holder decides to money out, she or he can at all times promote the word for a lump sum money cost.

No matter market situations, vendor take-back financing makes sound monetary sense; whereas, it gives each purchaser and vendor with versatile financing choices, makes the property simpler to promote at increased worth and shortens the gross sales cycle. It additionally has the added benefit of being a superb funding that generates a gradual money movement and excessive return. If you happen to ever want rapid money, you’ll be able to at all times promote the word via our workplace. In case you are planning to promote a property, then think about the numerous advantages of vendor take-back financing.