Columnist Stacey McCarthy has the week off. Today, we’re running her post from this time last year.

Q: I am so excited! I make settlement on my first home in Holme Circle on Friday and I don’t know how to get the bills in my name. I want to make sure I have all my bases covered, so I want to call the utility companies asap. Who do I need to call? And will the seller’s bills already be paid off?

A: Congratulations! Owning your first home is very exciting. One thing you shouldn’t have to worry about is the seller’s utility pay-offs. The title company you use to make settlement will make sure the seller’s utility bills are paid up. continue reading »

To Roth or not to Roth?

As part of the process, I get to see how people are preparing for the eventual retirements. When it comes to retirement savings, many people are still saving exclusively on a pre-tax basis. This may not be the most advisable strategy, especially if you are in your 20s or 30s.

Contributing to retirement accounts on a pre-tax basis has become the most common approach to saving for retirement, whereby you get a current year tax break on the income you are saving in your 401k, 403b or traditional IRA. Then down the road – 20, 30 or 40 years from now – you will pay taxes when you begin withdrawing the money during retirement. This money would grow tax deferred over all these years. The only trouble is that you could be paying taxes at a much higher rate when the money is withdrawn.

If instead you were to make your retirement plan contributions with after-tax dollars, you could be helping yourself immensely. You would forfeit a current year tax benefit but your eventual withdrawals would be completely tax- free. This means that all the growth you could experience would be tax-free. continue reading »

Q: I just bought a house in Rhawnhurst on Horrocks Street for more than $150,000 and I just found out another house listed on Horrocks Street just sold for $40,000! Is my house worth less now?

A: The average sold price in Rhawnhurst is $155,000 right now. Of the 43 homes sold in the last four months, the lowest priced home was a two-bedroom bank-owned property for $85,000, so $40,000 would be a steal in Rhawnhurst. continue reading »

Q: I made an offer on a short sale in Morrell Park. I backed out of the deal because the sellers were using a short sale negotiator who wanted to charge me extra money just for negotiating their short sale. Shouldn’t it be the sellers’ responsibility to pay this person? After all, they are the ones who are benefitting.

A: The seller is not the only party who benefits from a short sale. Short sales are considered “bargains” in the real estate world because these homes can be acquired for up to 20 to 30 percent less, or more, than the average price of a regular, non-distressed home. continue reading »

With so many baby boomers moving into retirement, this is a good time to get the conversation started around Medicare. Unfortunately, this area of retirement planning can be complex and results in a lot of confusion.

First, boomers who reach age 65 are required to sign up for Medicare unless they are covered by a qualified employer plan. If you do not sign up during the designated period, you may have to pay higher premiums for the remainder of your life. This is important to keep in mind, because many people may be delaying taking Social Security until 66, but they still may need to register for Medicare.

Second, Medicare is broken down into four key parts: continue reading »

Q: I tried to sell my condo in Bustleton and I signed an agreement of sale on it, but the sale never went through. I was told it is because I am “not FHA approved.” What does that even mean?

A: It means your buyer was approved for an FHA loan but your condominium does not meet FHA requirements. If your condominium complex is not approved by the Federal Housing Authority, homebuyers will be unable to use an FHA loan to secure financing for your unit. continue reading »

Q: A few months ago I found a house in Somerton that I wanted to buy, but it was overpriced by about $20,000 and over my budget. I made an offer on the house for the price I thought I could afford and we sent comps with the offer. But I was turned down flat. I am still looking for a home, but I noticed the house I made the offer on is still for sale but at a lower price than I offered. I don’t want it now, but why didn’t they just take my offer? They would have made more than they’ll make now. It doesn’t make sense.

A: Unable to accept the fact that their home was overpriced, the sellers apparently needed the extra time on the market to see if it would sell at the price they wanted first before reducing to a more realistic price. They are probably kicking themselves now for turning down your offer. continue reading »

There have been a number of stories in the news for months about the issues that Greece is facing.

The country has been living way beyond its means for years. The impact of spending more than they bring in and creating a system of entitlement programs is having a horrific impact on the economy there. Unemployment has soared, wages have fallen, pension program benefits have been restructured and a result there is significant unrest in the country.

Similar things are going to happen in some of the other European Union countries like Italy, Spain, Portugal and France. The European Union is trying to deal with this with Germany leading the way. Germany has the largest economy in all of Europe and is in the best financial shape. The trouble is that the German citizens do not want to be the backstop for all the countries in the Union.

The reason I bring all this up is that we are headed down the same disastrous path as Greece and the other countries if we do not start making some difficult decisions. The challenge is that these decisions will have an impact on our economy in the short run. Here is a summary of the things that we have deal with. Regardless of your political affiliation, these things must be dealt with – and soon – so that our kids and grandkids do not have to pay for 60 year’s worth of mistakes. continue reading »

Q: I wanted to rent a house in Castor Gardens, but the owner turned me down flat because I have had a past eviction. I never got the chance to explain the eviction, but it was not my fault. How can I find a rental that won’t care about the eviction?

A: In this economy and housing atmosphere, rentals are in high demand these days so landlords can afford to be picky about their tenants. Job stability is a concern. A low credit score may be a problem. And any past evictions will definitely be a deterrent in finding a rental. continue reading »

Q: If I want to sell my home in Holmesburg, how much do you think I can get for it now? It is a three-bedroom and one-bathroom row. It is in good condition, but needs some updating. I was thinking about replacing the rugs, but have little money to do much else. Thanks for any info you can give me.

A: Holmesburg is known for its nice mix of singles, twins and row homes. Of the 11 homes sold in the last four months, eight of those were row homes. Of the 10 sales currently pending, half are row homes. continue reading »