The Consumer Financial Protection Bureau issued a rule Tuesday to slash credit card late fees in a move the agency says should save millions of credit card users an average of $220 per year. The decision drew immediate objection from banking trade groups.
The government agency reduced the typical credit card late fee from $32 to $8, which should translate to more than $10 billion in annual savings among the roughly 45 million consumers who are charged late fees.
“For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers,” said CFPB Director Rohit Chopra in a statement, asserting that the new rule will end these practices.
The lower fees are expected to take effect within three months, which would give card issuers time to update their disclosures and systems. It’s unclear how possible challenges to the rule could affect the timing.
Rule halts late fees’ steady climb since 2010
The rule, which was proposed in 2023, closes a loophole in the Credit Card Accountability Responsibility and Disclosure Act of 2009.
The CARD Act banned credit card companies from charging higher late fees than needed to cover the companies’ costs associated with the late payment. But in 2010, the Federal Reserve Board of Governors voted to include a provision in the CARD Act that allowed banks to charge no more than $25 for the first late payment and $35 for subsequent late payments, with both of those figures being adjusted for inflation each year.
Today, those figures have swelled to $30 and $41, respectively, despite credit card companies having adopted cheaper business practices in recent years, the CFPB said in a statement. The average credit card late fee was $32 in 2022, up from $23 in 2010.
“Almost all of the credit card giants have been hiking these fees every year using automatic inflation adjustments as an excuse,” Chopra said in a call Monday announcing the CFPB’s new rule. “Today, the credit card industry hauls in more than $14 billion in late fee revenue, which our research shows is more than five times the companies’ associated costs.”
The rule applies to large credit card companies with more than 1 million open accounts. These companies hold more than 95% of open credit card balances, the CFPB said in the statement.
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Industry trade groups speak out against the rule
Banking industry executives slammed the new rule. Rob Nichols, president and CEO of the American Bankers Association (ABA) said in a statement that the new CFPB rule “relied on flawed assumptions and a mischaracterization of the important role late fees play in promoting responsible consumer behavior.”
Adding that the ABA will try to challenge the new policy, Nichols said, “This rule should not be allowed to go into effect.”
Lindsey Johnson, president and CEO of the Consumer Bankers Association, said in a statement that the new rule is “normalizing being late on credit card payments” and ultimately puts consumers’ financial health at risk.
A crackdown on junk fees
The CFPB’s latest announcement follows a similar move earlier in the year on overdraft fees, signaling a concerted crackdown on junk fees from federal officials and regulators.
In January, the agency proposed restrictions that could lower the average overdraft fee from $35 to $3 per transaction. Banking industry advocates spoke out fiercely against this proposal too. The restriction is currently expected to go into effect in October 2025.
The Biden administration will soon announce a “strike force” intended to “hold companies accountable when they engage in unfair and illegal practices that keep prices high,” Lael Brainard, director of the National Economic Council, said on the Monday call with Chopra.
The force is part of the administration’s efforts to lower the cost of groceries, prescription drugs and health care, banking, housing, airfare and basic utilities. It’ll be jointly led by the Federal Trade Commission and the Department of Justice.
In conjunction with those efforts, the Federal Communications Commission will also tackle “bulk billing,” in which people living or working in a building are charged by landlords or building owners for internet, cable or satellite service, whether they want the service or not.
Joaquin Arambula, a Democratic assemblyman from California, introduced Assembly Bill 1840 earlier this year, which could create an alternative way for illegal immigrants to achieve homeownership.
The bill is set to expand eligibility criteria for a state loan program to expand these loans to include undocumented migrants that are first-time buyers.
Arambula’s update to the bill states, “an applicant under the program shall not be disqualified solely based on the applicant’s immigration status.”
BILL MELUGIN: ‘WHAT HAPPENS AT THE BORDER NO LONGER STAYS HERE’
Migrants attempt to cross in to the U.S. from Mexico at the border on December 17, 2023 in Jacumba Hot Springs, California. Asylum seekers are stuck in makeshift camps in the extreme climate of the US-Mexico border. (Photo by Nick Ut/Getty Images)
“It’s that ambiguity for undocumented individuals, despite the fact that they’ve qualified under existing criteria, such as having a qualified mortgage [that] underscores the pressing need for us to introduce legislation,” Arambula told the LA Times.
The bill focuses on the California Dream for All Shared Appreciation Loans program, which launched spring of 2023 to give qualifying first-time home buyers a loan that covers up to 20% of a property’s purchase price that will not accumulate interest or have required monthly payments. Loanees are instead expected to pay back the original loan amount in addition to 20% of the increase in the home’s value when the property’s mortgage is refinanced or resold.
First introduced on January 16th, Bill 1840 was originally intended to “provide shared appreciation loans” to low and middle income citizens. Under Arambula’s new proposal, the legislation would expand to allow the program to include illegal immigrants into the eligibility pool.
Arambula sent Fox News Digital a statement saying how the bill will address the uncertainty of the eligibility for undocumented indviduals.
“The California Dream for All program already exists – it was established to assist low- and middle-income individuals to purchase homes. But the program hasn’t been clear about eligibility for undocumented individuals, and AB 1840 addresses that issue. Let me be clear: anyone who meets the program’s criteria can apply for this loan program. And, to qualify, you must secure a bank loan or mortgage,” the statement said. “AB 1840 is about providing an opportunity for homeownership, which we know allows families to secure financial security and stability. The ability to do this strengthens local economies, and that benefits all people who call California home.”
TRUMP: ‘THIS IS A JOE BIDEN INVASION’
A U.S. Border Patrol agent talks with asylum-seekers waiting between the double fence along the U.S.-Mexico border near Tijuana, Mexico, Monday, May 8, 2023, in San Diego. The migrants wait between the fences to be processed by U.S. Border Patrol agents. (Denis Poroy)
The LA Times reported the California loan program garnered 2,300 applicants in less than two weeks last year before the program’s applications were halted, and that “the program will replace its first-come, first-serve basis with a lottery.”
Concerns continue to rise across the country as the migrant crisis continues to grow and overpower different states’ available resources.
The new Senate border bill that was introduced earlier this month before subsequently failing to gather enough support, was at the forefront of Biden’s priorities during his recent visit to the border.
“Folks, the bipartisan border security bill is a win for the American people and a win for the people of Texas, and it’s fair for those who legitimately have a right to come here,” Biden stated.
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President Joe Biden and National Border Patrol Council President Brandon Judd.(Getty Images)
National Border Patrol Council (NBCP) President Brandon Judd, who was present at former President Trump’s visit to the border in Eagle Pass, TX, relayed his sentiments towards the ongoing migrant crisis.
“Border patrol agents are upset that we cannot get the proper policy that is necessary to protect human life, to protect American citizens, to protect the people that are crossing the border illegally. We can’t do that because President Biden’s policies continue to invite people to cross here,” Judd said.
The artic was updated to include a statement from State Rep. Arambula.
Alba Cuebas-Fantauzzi is a freelance production assistant at Fox News Digital.
Capital One’s $35.3 billion all-stock deal to purchase Discover could make it the largest credit card issuer in the country, in addition to expanding both its digital banking presence and Discover’s global payment network.
The deal arrives as consumers are struggling to keep up with inflated prices — and they’re carrying more credit card debt than before the pandemic. A report by the Federal Reserve Bank of New York, released on Feb. 6, found that Americans held a collective $1.129 trillion in credit card debt at the end of 2023. By comparison, by the end of 2019, Americans held $930 billion in credit card debt.
The report also showed that borrowers are having trouble repaying their debt. Serious delinquencies among credit card borrowers rose 6.36% in the fourth quarter of 2023 compared with a 4.01% increase at the same time in 2022. Both Capital One and Discover show an increase in delinquency rates, but Discover’s fourth-quarter results reported a larger spike in consumer card delinquencies than Capital One’s.
After a Capital One call for investors on Tuesday morning, the markets responded: Discover’s stock rose while Capital One shares dipped slightly.
In the call, Capital One indicated it expects the deal to be complete by the end of 2024 or early 2025 — that is, if federal regulators allow it. The acquisition is expected to face close scrutiny in the coming year.
Here’s what you need to know about Capital One’s Discover acquisition.
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1. Capital One would be a formidable credit cards competitor
The deal opens the door for Capital One to become the nation’s largest credit card issuer by outstanding debt, outpacing JPMorgan Chase and Citigroup, according to the payment industry trade journal the Nilson Report. The company will remain based in McLean, Virginia, while maintaining a significant presence in Chicago, where Discover is based.
In the call with investors on Tuesday, Richard Fairbank, CEO and chairman of Capital One, touted the benefits of acquiring Discover’s global payment network, which will allow Capital One to more directly deal with merchants as opposed to a network intermediary. The more merchants Capital One can reach, the more money it stands to make over time.
While Capital One still holds contracts with Visa and Mastercard for many of its credit products, it will move at least some of its cards onto the Discover network over time, thus keeping a larger slice of the lucrative merchant fees its customers generate.
By owning a payment network, Capital One is poised to compete with its most direct competitor, American Express, and reduce its dependency on the two biggest players in global payments: Visa and Mastercard.
Fairbank says the company is also hoping to expand Discover’s network deeper into the global market.
2. Capital One hopes to expand its digital banking reach
Capital One is the ninth-largest bank in the U.S. with both physical branches and an online presence. Meanwhile, Discover’s banking presence is overwhelmingly online. But both are credit card-first, banking-second companies. The acquisition won’t change that, but it will enable Capital One to expand further into banking.
The deal would accelerate Capital One’s banking business by allowing the company to tap in to Discover’s network for banks. In the call with investors, Fairbank said Capital One plans to move its debit card business over to the Discover Signature debit network to help Discover compete with the other three networks.
Fairbank said that branding for Discover’s banking network would remain Discover. “Capital One as the network might not be as ideal a thing for other banks to choose as the Discover brand,” he said.
3. Discover would remain its own brand
Discover will remain its own brand in the combined company. In the investor call, Fairbank said Capital One will keep Discover’s branding and continue to market it. “Over time, customers would understand this is part of Capital One,” he said.
Fairbank indicated that it was unrealistic to convert the Discover brand into Capital One. “Think about all those stickers that are out there at every point of sale and all the real estate that’s now on every online checkout page and so on,” he said. “It would be a really big lift to convert that to the Capital One brand.”
Fairbank noted that while Discover is accepted nearly universally in the U.S., it has an image problem that Capital One hopes to change. He said, “Our research confirms that customers are very satisfied with acceptance, but the perception of acceptance among noncustomers lags the reality.”
Fairbank says Capital One plans to move some of its credit card volume to Discover’s network in order “to enhance its scale.” He also said the company “will lean hard into further building the brand and the perceived acceptance of the credit card network here in the United States.”
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4. The deal faces regulatory hurdles
Consumers won’t see any changes from the acquisition anytime soon. That’s because the deal won’t be complete until shareholders and regulators approve it.
The Justice Department, banking regulators and the Federal Deposit Insurance Corp. are likely to scrutinize the proposed deal. The Biden Administration has toughened its approach to mergers and acquisitions, including those still underway like the Kroger and Albertsons grocery chain merger and Alaska Airlines’ takeover of Hawaiian Airlines. And last month, a federal judge blocked JetBlue’s buyout of Spirit Airlines under antitrust laws.
The U.S. Office of the Comptroller of the Currency has also said it plans to institute a more complex, and ultimately slower, process for bank acquisitions. Capital One’s Discover proposal faces standard regulatory procedures, so it’s unclear whether these stricter requirements would apply to this acquisition.
Fairbank noted in the call with investors that both Capital One and Discover will be filing approval applications with the federal government in the next few months and said “we believe that we are well-positioned for approval.”
5. The bigger the company, the higher the interest rates
Credit card interest rates are now much higher than in recent years, mirroring the broader rate environment. The average APR among credit cards that incurred interest was 22.75% in the fourth quarter of 2023, according to data from the Federal Reserve.
When it comes to interest rate offers, bigger companies aren’t always better, at least not for consumers. An analysis of 2023 credit card interest rate data by the Consumer Financial Protection Bureau, released on Feb. 16, found that the largest credit card issuers offer high interest rates — a maximum APR over 30% among nearly half of those issuers.
The report found a broad disparity between the median APRs on credit cards offered by large and small financial institutions based on credit scores. The biggest difference is among customers with good credit scores (620 to 719 in this report): Large card issuers offer a median APR of 28.2% — a difference of 10.02 percentage points compared with the median APR offered by smaller card issuers.
Big companies are also more likely to include an annual fee, and those fees are 70% higher than at small banks and credit unions, according to the CFPB report.
Still, big companies do tend to offer more generous rewards and discounts, like cash back and travel points, with their credit cards compared with small institutions. But the best perks are offered to the wealthiest customers, who make the most money through frequent and larger spending at merchants.
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Selling your house is often one of the largest financial transactions you’ll make in your life. It can be complex and emotionally challenging, especially if it’s your first time dealing with a home sale or if the house is full of family memories.
Despite these challenges, millions of people successfully sell their homes each year. The process is well-trodden, but each sale has its unique circumstances and can come with many curveballs.
Whether you’re downsizing, upgrading, relocating, or just ready for a change, selling your house is a big step. The task might seem daunting, but remember, you’re not alone. Many resources can guide you through this process, providing advice and support along the way.
This guide aims to simplify the process and provide you with step-by-step instructions to help sell your house.
From setting your objectives to finally handing over the keys, we’ll walk you through each stage. We will address common challenges and offer expert insights to ensure you’re well-prepared for the journey ahead. Our goal is to help you sell your house at the best possible price within your desired timeline, while minimizing stress and maximizing satisfaction.
Understand Your Selling Objectives
The first step in any successful real estate transaction is understanding your motivations and objectives for selling. Be clear about your goals and timeline to create a selling strategy that will get you the price you want for your home within the timeframe desired.
Why are you selling?
Your motivations for selling might be tied to lifestyle changes, financial circumstances, or relocation for work. Perhaps you’ve outgrown your current house, or maybe it’s become too big after the kids have moved out. You might need to relocate for a new job or prefer a change in scenery as you approach retirement. By identifying your reasons for selling, you’ll have a clearer idea of what you want to achieve with the sale.
What’s your timeline?
Your timeline can significantly influence your selling strategy. If you’re in a rush due to reasons like a job relocation or closing on another home, you may have to price your property more competitively to attract a faster sale. However, if you have the luxury of time, you can afford to be patient and wait for an offer that matches your ideal price.
Evaluate Your Financial Position
Understanding your financial situation is essential in the home-selling process. A realistic view of your finances will help you make informed decisions, particularly in setting a reasonable asking price.
Understand Your Home Equity
Equity refers to the portion of your property that you truly “own” – it’s the difference between the current market value of your home and the remaining balance on your mortgage. Knowing your equity can give you an idea of your potential profits from the sale.
Consider Your Outstanding Mortgage
The amount left on your mortgage is another critical factor. If your outstanding balance is more than your home’s sale price, you may need to consider a short sale, which requires your lender’s approval and can affect your credit score.
Estimate Closing Costs
Closing costs are the fees and expenses you pay to finalize your home’s sale, excluding the commission for the real estate agent. They may include title insurance, appraisal fees, and attorney fees, among other costs. These are usually about 2-5% of the purchase price. Understanding these costs is crucial as they directly impact your net proceeds from the sale.
Taking the time to clarify your selling objectives and understanding your financial position will pave the way for a more streamlined and successful home-selling experience. These factors are not just critical for setting a realistic asking price but also for aligning your home sale with your larger financial or life goals.
Prepare Your House for Sale
Once you’ve identified your selling objectives, the next step is to prepare your house for the market. A well-prepared home can catch the attention of more prospective buyers and even command a higher sale price.
Home Improvements and Necessary Repairs
Before you list your home, assess its overall condition. Some minor upgrades and necessary repairs can significantly enhance your home’s appeal, often leading to a faster sale or higher selling price.
Deep Cleaning and Carpet Cleaning
Begin with a deep clean to ensure your home looks its best. Pay attention to often-overlooked areas, such as baseboards, window sills, and ceiling fans. If you have carpets, consider hiring a professional carpet cleaning service to remove any stains or odors. Cleanliness can significantly influence a buyer’s first impression.
Minor Upgrades and Fixes
Next, tackle minor upgrades and repairs that could deter potential buyers. This could include painting walls with a fresh, neutral color, fixing any plumbing or electrical issues, and ensuring all appliances are in working order. Although these tasks may seem small, they can make a big difference to potential buyers.
Stage Your House
Staging your house involves preparing it for viewing by potential buyers. It can significantly impact how quickly your home sells and the price.
Hire a Professional Stager
A professional stager, although an extra cost, can be a worthwhile investment. For a few hundred dollars, they can transform your space and make it appealing to as many potential buyers as possible. They use strategies like optimal furniture placement, accentuating natural light, and choosing neutral decor to make your home attractive and inviting.
Depersonalize Your Home
Part of effective staging involves depersonalizing your home. This means removing personal items like family photos, collections, and mementos. The aim is to create a neutral space where potential buyers can easily envision themselves and their own belongings. It’s all about helping buyers picture your house as their future home.
In the competitive real estate market, first impressions count. By investing time, money and effort in staging your house for sale, you can stand out from the competition and make a great impression on prospective buyers. These preparations could translate into a quicker sale and potentially a higher price.
Set the Right Price
One of the most critical decisions in the home-selling process is determining the right asking price. Setting a competitive price can help attract more prospective buyers, shorten the time your home spends on the market, and potentially yield a higher sale price.
Understand the Importance of Pricing
Choosing the right price is not just about the amount you’d like to receive. It’s also about understanding buyer psychology and local market trends. Pricing your home correctly can result in more interest, more showings, and ultimately, more offers.
Get a Comparative Market Analysis
A key tool for setting the right price is a Comparative Market Analysis (CMA). A CMA provides information about recent home sales in your area, adjusted for differences in features and conditions, giving you a good idea of what buyers might be willing to pay for your home.
Hire a Great Real Estate Agent
A great real estate agent can provide an accurate and comprehensive CMA. They have the experience and local market knowledge to understand which homes are truly comparable to yours and how various features and upgrades impact pricing.
Consider Comparable Sales
Comparable sales, or “comps,” are recent home sales in your area that are similar to your property in size, condition, and features. Your real estate agent will look at these comps, adjust for differences, and use the information to guide you towards a fair and attractive list price.
Adjust for Features and Conditions
Every home is unique, and its features and condition will impact its value. Your real estate agent will consider these factors when setting your home’s list price. For example, if your home has a new roof or a remodeled kitchen, it might command a higher price compared to a similar home without these upgrades.
Setting the right price is both an art and a science. It requires an understanding of the local real estate market, an evaluation of comparable sales, and an assessment of your home’s unique features. By enlisting the help of a great real estate agent and leveraging their expertise, you can set a competitive price that will attract serious buyers and maximize your profits.
Market Your House
Once your house is ready for sale and priced right, the next step is to get the word out to prospective buyers. Effective marketing can attract more interest and lead to quicker, more competitive offers.
Use High-Quality Professional Photos
Professional photography plays a crucial role in marketing your house. High-quality photos can showcase your home’s best features and give potential buyers a good first impression. Homes listed with professional photos tend to receive more views online, which can lead to faster sales and often at higher prices.
Craft a Compelling Listing Description
A well-written listing description can spark interest and invite potential buyers to learn more. Highlight your home’s unique features, recent upgrades, and what makes it special. Remember, you’re not just selling a property, you’re selling a lifestyle. Allow your real estate agent to offer feedback and help you create an enticing, optimized listing that will also show up in search results when people are looking for a home like yours.
Host Open Houses and Private Showings
Open houses and private showings are opportunities for potential buyers to experience your home in person. Be flexible with your schedule and make your house available for viewing as often as you can. The more people who walk through your door, the better your chances of receiving an offer.
The Role of a Good Real Estate Agent in Marketing
Marketing a house involves a significant time commitment and a specific set of skills. This is where a good real estate agent comes into play.
Leverage the Multiple Listing Service (MLS)
A good real estate agent can list your property on the Multiple Listing Service (MLS), a database of homes for sale that’s used by real estate professionals. An MLS listing can increase your home’s visibility, attracting other real estate agents and their clients.
Find a Realtor with A Proven Track Record
Choose a real estate agent with a proven track record of sales in your area. Their experience and local market knowledge can be invaluable in promoting your home effectively and attracting serious buyers.
In a crowded real estate market, standing out is key. By leveraging professional photography, crafting a compelling listing description, and utilizing the expertise of a good real estate agent, you can market your home effectively, attracting more potential buyers and increasing your chances of a successful sale.
Evaluate Offers and Negotiate
Once your marketing efforts start paying off and offers begin to come in, it’s time to shift focus to negotiation. The goal here is to achieve the best possible terms that align with your selling objectives.
How to Evaluate Offers
When you receive an offer, it’s essential to look beyond the offered price. While the highest offer might seem the most appealing, it’s not always the best choice.
Consider the Buyer’s Lender
Understanding where the buyer’s financing comes from is important. Offers from buyers who are pre-approved by a well-known lender may carry less risk than those from buyers who are not pre-approved or who are using a less established lender.
Assess the Down Payment
The size of the buyer’s down payment can indicate their financial stability. A larger down payment may suggest that the buyer has solid finances and is serious about purchasing your home.
Understand the Buyer’s Timeline
A buyer’s timeline can be just as important as their offered price. A qualified buyer who can close quickly might be more attractive than a higher offer that’s contingent on selling a current house.
How to Manage Multiple Offers
Receiving multiple offers can be exciting, but it can also be overwhelming. Your real estate agent can help you with this process.
Consult with Your Real Estate Agent
Your real estate agent’s experience can be invaluable in this situation. They can guide you through your options, help you compare offers side by side, and give advice based on their understanding of the current real estate market and the specifics of each offer.
Make the Best Decision Based on Your Needs
When reviewing multiple offers, it’s important to consider your own needs and priorities. For example, if you need to sell quickly, you might prioritize a buyer who can close sooner, even if their offer is not the highest.
Negotiating and accepting offers can be a complex part of the selling process. It’s not just about accepting the highest offer, but understanding the nuances of each proposal and making the best decision for your circumstances. With the right real estate agent by your side, you can handle this process confidently and successfully.
Close the Sale
After you’ve accepted an offer, the next step is to finalize the transaction. The closing process involves several stages, including a home inspection, title search, potential repair negotiations, and final paperwork signing. Here’s what to expect:
The Due Diligence Period
The due diligence period allows the buyer to further investigate the property after their offer has been accepted. During this time, the buyer’s agent will arrange for a home inspection.
Home Inspection and Report
A professional home inspector will thoroughly examine your property and generate an inspection report. This document details the condition of the house and outlines any potential issues, from minor maintenance concerns to significant structural problems.
Negotiating Repairs
If the inspection report reveals necessary repairs, there may be further negotiations. Buyers might ask you to handle the repairs, reduce the sale price, or offer a credit at closing to cover the repair costs.
The Title Search and Insurance
As part of the home buying process, the buyer’s lender will work with a title company to conduct a title search. This ensures the house is free from liens or claims and that you have a clear title to transfer to the new owners.
Understanding Title Insurance
Buyers might also negotiate for you to pay for title insurance as part of the closing costs. Title insurance protects the buyer and their lender from future property ownership claims, unexpected liens, or undisclosed property heirs.
Sign the Final Paperwork
The last step in the home sale process is the closing meeting. Here, you’ll sign the final paperwork, which includes key documents such as:
The Bill of Sale
This document transfers the ownership of personal property (like appliances or furniture) included in the home sale.
The Deed
This legal document transfers ownership of the property from you, the seller, to the buyer.
Documents Prepared by a Real Estate Attorney or Real Estate Brokerage
The closing process involves many legal documents. These might be prepared by a real estate attorney or real estate brokerage to ensure everything is in order.
Closing the sale of your house can be a complex process. However, understanding each step can help you proceed with confidence and reach a successful conclusion to your home sale journey.
Post Sale Considerations
Even after the final paperwork has been signed, and the new owners have the keys, there are a few additional factors to consider. The sale of your house doesn’t just end at the closing table. Let’s delve into these post-sale considerations.
Understand the Tax Implications
Selling your house can have significant tax implications. The application of taxes largely depends on the profit you make from the sale and how long you’ve lived in the house.
Capital Gains Tax Exemption
If the house was your primary residence for at least two of the last five years before selling, you might qualify for a capital gains tax exemption. This can significantly reduce your tax liability.
Consult with a Tax Professional
However, tax laws can be complex, and every situation is unique. Consult with a tax professional or a certified public accountant to fully understand the potential tax impacts. They can provide guidance tailored to your specific circumstances.
The Move to Your New Home
Moving to your new home involves logistical and financial considerations. Plan ahead for moving costs, including professional movers, moving supplies, and potential temporary housing.
Keep Records of Your Home Sale Expenses
It’s wise to keep a comprehensive record of all home sale-related expenses. This includes real estate agent commissions, home improvements made before the sale, and any fees or costs associated with closing. These records can be crucial for your future tax returns or financial planning.
Some of your moving costs may be tax-deductible if you or a member of your household is in the military, and you are moving due to a military order. Previously, moving costs were tax-deductible for many people who were relocating due to a job. After 2025, these deductions may return.
Conclusion
Selling your house is a significant event, and educating consumers about the process can reduce stress and result in a better outcome. By preparing your home, pricing it right, and working with a competent real estate agent, you can complete the transaction smoothly and efficiently.
The selling process might seem overwhelming, but with thorough preparation and the right team on your side, it can be an exciting time. Remember, every house can sell, it just requires the right strategy, a competitive price, and a bit of patience.
Frequently Asked Questions
What should I do if my house isn’t selling?
If your house isn’t attracting buyers, various factors could be at play. The asking price may be too high, marketing efforts might be insufficient, or the house’s condition could be deterring potential buyers. Consult with your real estate agent to pinpoint potential problems and devise solutions. You may need to reduce the price, enhance your marketing strategy, or invest in necessary home improvements.
Can I sell my house myself instead of using a real estate agent?
Yes, selling your house yourself is an option. This is known as “For Sale By Owner” (FSBO). However, selling a house involves complex tasks like pricing, marketing, negotiating, and handling legal paperwork. Real estate agents possess the expertise and experience to deal with these challenges. If you opt for FSBO, be prepared for a significant time commitment and be ready to handle these tasks yourself.
How long does it usually take to sell a house?
The timeline for selling a house can vary greatly and depends on numerous factors, such as local market conditions, the home’s condition and price, and even the time of year. On average, it can take anywhere from a few days to a few months. Your real estate agent can give you a better estimate based on local trends and your specific situation.
What is a seller’s market, and how can it impact my home sale?
A seller’s market occurs when the demand for homes exceeds the current supply. This often results in homes selling more quickly and at higher prices. If you’re selling your house in a seller’s market, it can be an advantage as you may get multiple offers and a higher sale price.
Should I make repairs before selling my house?
Whether to make repairs before selling your house often depends on the type and extent of the repairs and the overall condition of your house. Small repairs and improvements, like painting or fixing leaky faucets, can make a good impression on buyers. If your home has more more substantial issues, discuss the repairs with your real estate agent to weigh the cost against the potential return on investment.
A bill introduced in the New Jersey Senate would require face-to-face counseling for the state’s reverse mortgage transactions and would void any loans executed without proof of such counseling having taken place. The bill is currently awaiting deliberation in the state Senate’s commerce committee.
The bill, S2520, would also offer a seven-day right of rescission on any reverse mortgage transaction, allowing a borrower to cancel the loan within that window without a penalty.
Bill proposal, lawmaker concerns
The current version of the bill was introduced earlier this month by state Sen. Shirley Turner (D), who represents New Jersey’s 15th district encompassing Hunterdon and Mercer counties. Turner originally introduced a similar bill in 2016, she told RMD in an interview.
Turner explained that her primary concern when initially introducing the bill came from a distressed constituent whose elderly mother lost her home after taking out a reverse mortgage without fully understanding the requirements of the loan, the senator said.
“His mother had taken out a reverse mortgage unbeknownst to him and he was very distraught because he didn’t learn of the reverse mortgage until it was too late for him to intervene,” Sen. Turner explained to RMD. “That was when he contacted me and he also contacted the state attorney general. We both investigated and found out that there was nothing that we could do because it was too late in the process.”
The constituent had hired his own lawyer, but his mother ended up having to leave the home after falling behind on associated taxes.
“She just fell further and further behind, and did not tell [her son] until it was too late, when she was getting the notices threatening to evict her from the house,” Turner said. “And she was then, of course, extremely upset because that was the house that she had lived in — and thought she would die in — because she had lived there for 60 years.”
The home, Turner added, had been built by the woman’s late husband in the mid-1950s. That made the senator concerned about the reverse mortgage industry’s marketing activities to borrowers, particularly those who might be dealing with the recent loss of a spouse.
Industry response
Turner’s bill would have a “chilling” effect on reverse mortgage business in the state of New Jersey, according to a letter submitted to the lawmaker’s office on Feb. 13 by the National Reverse Mortgage Lenders Association (NRMLA).
When asked if she had seen the letter, Turner said it had not yet arrived at her office as Friday.
NRMLA contends that the in-person requirement would dampen reverse mortgage availability in the state, primarily since most reverse mortgages originated in New Jersey are Federal Housing Administration (FHA)-sponsored Home Equity Conversion Mortgages (HECMs).
FHA’s HECM program already requires counseling prior to the closing of a reverse mortgage from agencies approved by the U.S. Department of Housing and Urban Development (HUD), and HUD requirements dictate that “clients may receive telephone counseling unless such counseling is prohibited in their state.”
“[W]e further note that, as of today, it appears that only […] six counseling agencies in New Jersey are approved by HUD to provide reverse mortgage counseling,” NRMLA wrote.
NRMLA also points out that an in-person counseling requirement is not imposed by FHA or HUD for HECM loans, and that such a requirement in New Jersey would “have the unintended consequence of decreasing the availability of reverse mortgage counseling while simultaneously imposing unnecessary hardships on New Jersey seniors seeking a reverse mortgage loan,” the letter stated.
Turner explained that she would be happy to meet with NRMLA or any other organization that either supports or opposes any legislation she introduces.
“I always meet with everybody,” she said. “Not just those who support my bill but also those that oppose it. And hopefully, we can find common ground and everybody wins.”
In-person hurdles
An in-person counseling requirement remains law in Massachusetts, which contributed to the halting of reverse mortgage business throughout the state at the onset of the COVID-19 pandemic due to stay-at-home orders handed down by then-Gov. Charlie Baker (R) in an effort to arrest the spread of the virus.
Soon afterward, an emergency bill passed by the Massachusetts Legislature relaxed the in-person counseling requirement, particularly due to the susceptibility of older people to the effects of illness caused by COVID-19. Since that point, the legislature has considered permanently rescinding the in-person counseling requirement, citing post-pandemic challenges and a limited supply of HUD-approved counselors who serve the full state.
A permanent solution has not yet materialized, however, with the legislature instead opting for temporary extensions of the relaxed rule. The current extension is scheduled to expire at the end of March 2024.
Comparisons to Massachusetts
Reverse mortgage industry veteran George Downey of The Federal Savings Bank in Braintree, Massachusetts, has been a key figure in the industry’s efforts to change the law within that state. He offered his personal opinion on the New Jersey matter.
“Clearly, this is another well-intended but misguided initiative,” Downey said an interview, comparing the proposed New Jersey bill to the in-person provision in his state. “But in addition to the logistical reasons, attorneys I’ve spoken with agree with my opinion that the issue of disparate impact under the American Disabilities Act and Fair Credit Reporting Act (FCRA) could be a consideration.”
Disparate impact provisions in U.S. law refer to practices that may adversely affect one group of people within a protected class more than another, even though rules applied are ostensibly or formally neutral.
“As you bear down on this in-person counseling issue, it puts a protected class at a distinct disadvantage by requiring them to assume additional cost,” Downey said, primarily referring to transportation. Downey has had personal experience with disabled clients who had to shoulder high costs to reach an in-person counseling appointment.
“Just as easily, the counseling could have been accomplished with a phone call,” he said.
While a recession never materialized in 2023, it was still a tough year financially. Interest rates and costs continued to climb, leaving many consumers turning to their credit cards — and taking on more debt — to make ends meet. According to NerdWallet’s 2023 American Household Credit Card Debt Study, total credit card debt in U.S. households increased by 15.6% from 2022 to 2023. Here’s what we saw happen with credit cards last year:
The credit card industry took a cautious approach, pulling back on those targeted credit card offers you get in the mail or your email inbox, according to Competiscan, a company that tracks and analyzes direct marketing activity.
Consumers sought lower-interest loan products, opting for buy now, pay later plans and borrowing against their credit limits at lower rates. “What I like about that is it’s giving people more options on how to manage their money and what works best for them,” says Beth Robertson, managing director of Keynova Group, a financial services intelligence firm. “I think that will continue regardless of interest rate fluctuations.”
Credit card rewards remained important to consumers who were looking to get more value out of their purchases at a time when costs increased.
Here are some trends we may see in 2024.
1. Interest rates could go down
Interest rates have increased 11 times since the beginning of 2022. The average APR charged for credit card accounts that incurred interest peaked at 22.77% in the third quarter of 2023, according to the Federal Reserve (the average rate as of November 2023 went down just a smidgen to 22.75%). Because inflation is cooling off, the expectation is that the Fed will lower interest rates in 2024.
Regardless, credit cards charge higher interest rates compared with other types of loans. It’s worth considering ways to reduce spending on interest payments, such as using a balance transfer credit card or consolidating debt with a personal loan. Some cards allow you to borrow a portion of your credit limit at a low-interest rate. You can also call your credit card company to see whether you’d be eligible for a lower interest rate.
2. All eyes are on the Credit Card Competition Act
When you make a purchase with a credit card, a payment network like Visa or Mastercard serves as the intermediary between the merchant and the credit card company. For their services, these networks charge an interchange fee, a small percentage of the purchase price. If you use a card that runs on the Visa network — that is, a card that features the Visa logo — then, the merchant must go through Visa to process that transaction and pay whatever fee is charged. The same is true of Mastercard: Present a credit card bearing that logo, and the merchant must run the payment through Mastercard and pay that fee.
The Credit Card Competition Act is a bipartisan measure that would require large credit card-issuing banks to allow merchants more choice in which payment network can be used for processing transactions. The idea is that introducing competition might drive down some of those interchange fees, which many merchants consider excessive. Proponents say merchants may pass those lower costs to consumers, or reinvest in their businesses, leading to an improved customer experience.
Opponents of the proposal, however, point out that it doesn’t require merchants to lower their prices, so there’s nothing stopping business owners from simply pocketing those earnings. They also argue that if credit card issuers lose out on interchange fee revenue, they may diminish their rewards programs to make up for the shortfall.
But for now, at least, all of these possible outcomes are just theories. No one knows for sure what progress the bill could make this year, if any, or what exactly its consequences might be.
3. Rewards will continue to be reimagined
Earning cash back or travel rewards when you use your card for groceries, gas, restaurants and travel expenses is certainly nice, albeit a little unimaginative at this point. To attract and retain millennial and Generation Z consumers, credit card issuers are continuing to rethink rewards.
According to Jacqueline White — president of i2c Inc., a global provider of banking and payment solutions — more personalization helps younger consumers feel seen by the credit cards they carry. “It comes down to marketing specifically to you as an individual, knowing your age, stage of life, financial goals,” White says.
Matthew Goldman, founder of Totavi, a financial technology consulting firm, says that financial technology companies will continue to bring unusual credit cards to the market. “A lot have failed, but that won’t stop people from trying.”
Expect more cards that earn rewards in relatively new categories that appeal to the next generation, like electric vehicle charging, online shopping and rent payments. “The innovation is exciting, because a more personalized card for what you need is going to be a better card for you,” Goldman says.
4. Issuers want to keep cardholders close
One way card issuers are keeping their customers loyal is by welcoming them into a complete ecosystem, according to Jessica Duncan, assistant vice president of research and insights at Competiscan. Travel rewards cards do this by encouraging cardholders to use brand-specific portals to book upcoming trips, as opposed to booking directly with airlines and hotels. Duncan says you also see this with credit-building cards that require users to open a bank account within the same institution to fund the card’s credit limit.
Short-term promotions that allow cardholders to earn more rewards are another way to keep card use higher, Robertson says. For example, there was a recent limited-time promotion for select Chase cards that offered a statement credit if you used your card to pay for certain bills, including utilities, internet, transit or gym memberships.
5. Magnetic stripes are going extinct
Beginning this year, newly issued Mastercard credit and debit cards will no longer be required to include a magnetic stripe, with a plan to completely phase them out by 2033. With so much valuable real estate getting freed up on the backs of cards, their designs could look quite different.
Meg Cipperly, vice president of client services at Competiscan, says this could pave the way for additional cards with vertical designs, which are more in line with how people hold their cards when inserting them into chip readers.
Thankfully, wallets with vertical card slots already exist.
The interest rate freeze proposal has just been unveiled by the Bush Administration, a plan which could help as many as 1.2 million borrowers stay in their homes.
“There is no perfect solution,” President Bush said Thursday as he announced the agreement reached among a slew of mortgage industry players. “The homeowners deserve our help. The steps I’ve outlined today are a sensible response to a serious challenge.”
Bush was quick to explain that the plan wasn’t a bailout, claiming the proposed interest rate freeze would only benefit responsible homeowners.
“We should not bail out lenders, real estate speculators or those made the reckless decision to buy a home they knew they could never afford,” Bush said after meeting with industry leaders at the White House. “But there are some responsible homeowners who could avoid foreclosure with some assistance.”
He also noted that thousands of borrowers have been sent letters about their options, and that aid would only come to those who asked for it, urging at-risk homeowners to call the new telephone hotline at 1-888-995-HOPE.
The president had originally given out the wrong phone number for the hotline, which was later corrected by White House staff.
Bush also played a bit of the blame game, saying the Democratic-controlled Congress “has not sent me a single bill to help homeowners.”
Hillary Clinton called Bush’s plan “too little, too late”, referring to the fact that it would exclude the 400,000 homeowners whose mortgage rates have or will reset in the final three months of 2007.
Fed Chief Ben Bernanke released a statement saying, “The streamlined process for refinancing and modifying sub-prime adjustable rate mortgages announced today is a welcome step in helping Americans protect their homes and communities from the consequences of unnecessary foreclosures.”
Meanwhile, the S&P said the mortgage freeze plan may lead to more downgrades on mortgage bonds because loan modifications will lead to reduced payments to investors.
Shares of the top U.S. mortgage lender, Countrywide Financial (CFC), rose $1.68, or 16.12%, to $12.10 on the news.
That said, here are the details regarding the “interest rate freeze proposal” unveiled today:
In order to qualify for an interest-rate freeze, you must have received your mortgage sometime between January 1, 2005 and July 31, 2007, and you need to be facing an interest rate reset sometime between January 1, 2008 and July 31, 2010.
If you fall within this range, you may be eligible to have your interest rate frozen for five years, though you won’t qualify if you are able to make payments at the higher adjustable rate, or if you can’t make payments at the original teaser rate.
The plan is focused on first-lien, 2/28 and 3/27 ARMs for borrowers who are no more than 30 days behind on their mortgage payment.
It only applies to owner-occupied properties, so investment property owners need not apply.
According to a source briefed on the plan, borrowers who have 3 percent or more home equity would also not be eligible for the freeze, and borrowers with credit scores below 660 will be first in line.
The plan identifies three classes of at-risk borrowers:
– Strong borrowers facing an interest-rate reset will be helped into FHA fixed-rate mortgages, and won’t be eligible for an interest rate freeze.
– Borrowers with credit scores below 660 that have not increased by 10 percent since the origination of the mortgage in question will be fast-tracked for a loan modification, though borrowers with higher scores may also qualify.
– And finally struggling borrowers who aren’t able to afford even a modified loan will end up facing foreclosure.
It looks like the proposal will only help a small group of homeowners, though others will receive assistance from individual mortgage lenders and through other government agencies like the FHA.
According to a CreditSights report released Tuesday, the Bush Administration’s recent mortgage interest rate freeze proposal will likely create more problems than solutions for most homeowners.
The report claims the freeze plan will undermine the viability of the secondary market that has played a key role in providing mortgage loans, and will set in place similar expectations for Alt-A borrowers who face resets in coming years.
Creditsights analyst Christian Stracke noted that fifty percent of mortgage loans since 2002 have been made available via lending from the securitization markets, and said loan modifications would reduce the value of residential mortgage backed securities (RMBS).
“The potential contagion into the broader RMBS market could jeopardize the extension of credit through the securitization market, further undermining the benefits generated from the modification plan,” said Stracke.
He also argued that Alt-A mortgage resets could turn out to be just as bad as their subprime brethren, forcing the government to step in yet again to assist another set of at-risk borrowers.
“The combination of option adjustable rate mortgages and traditional Alt-A adjustable rate mortgage resets will be just as bad, if not worse, in terms of the absolute par loan dollar amount as the subprime reset problem, although it is not set to peak until 2010-2011,” Stracke said.
“Assuming the housing market has not shaken off the current slump by 2010, the wave of resets could create yet another wave of foreclosures among a class of homeowners that is going to remember the forbearance offered to subprime borrowers all too vividly,” he added.
Stracke also believes homeowners will lie about their income, and/or intentionally damage their credit scores to attain eligibility for the loan modification program.
“We find it hard to believe that borrowers who have too much income and/or too high credit scores to qualify for the modification will not find some way to convince their mortgage servicers that they do in fact qualify,” he wrote.
“The incentive to lie, or even to damage one’s own credit score, is too high,” he added.
RICHLAND TWP., Pa. – Eagles, Flyers, 76ers and Phillies fans will soon have a new spot to score jerseys, hats and other fan gear in upper Bucks County.
Rally House, a specialty sports store chain offering an expansive selection of apparel, gifts, home decor and other types of merchandise representing local NCAA, NFL, NBA, MLB, NFL and MLS teams, is planning to open a new location in a few months at 244 N. West End Blvd. in Richland Township.
The new store will fill the space previously occupied by Tuesday Morning, a home goods retailer, in the Trainer’s Corner shopping center, just outside Quakertown.
“We are opening a new Rally House location in Quakertown and excited to get it open to residents and fans,” stated Colin Novick, Rally House’s media and production manager. “We are aiming to have this store open in early spring in April.”
Rally House traces its origins to 1989, when Tim and Mabel “Peg” Liebert started “Mabel’s Kitchen,” a catalog featuring Kansas-related apparel, gifts and other merchandise.
Mabel’s Kitchen evolved into another business, “Kansas Sampler,” which featured five Kansas City area stores selling Kansas Jayhawks, Kansas State Wildcats, Kansas City Chiefs and Kansas City Royals gear.
The company experienced great success, and the Lieberts eventually decided to expand the business to other markets under the “Rally House” name in 2008, according to a company description.
Today, Rally House has more than 180 locations across 18 states. The new Quakertown area store will supplement more than a dozen other regional locations, including a Lehigh Valley shop in Lower Macungie Township, two other Bucks County stores and several locations in Montgomery County.
Rally House stays true to its roots by providing “an impeccable selection of local and team-related apparel and gifts, including exclusive designs available only at Rally House,” according to the company’s website.
Regional stores offer a wide array of merchandise, including clothing, blankets, glassware and signs, featuring logos and designs of Philadelphia and surrounding area teams.
Customers at the Lehigh Valley store, for example, can shop plenty of Philadelphia Eagles, Flyers, 76ers and Phillies items, along with merchandise showcasing designs of various regional universities, including Lehigh, Kutztown, Penn State, Temple, Villanova, Drexel, St. Joseph’s and West Chester.
Other area sports teams, including Lehigh Valley IronPigs and Philadelphia Union, are also represented.
Philadelphia area teams are primarily featured, but there is also a selection of merchandise featuring other popular teams such as the New York Yankees, Pittsburgh Steelers and New York Giants.
Customers can browse apparel such as T-shirts, sweatshirts, coats and shorts, along with footwear and fashion accessories such as slippers, hats, scarves and jewelry.
A wide variety of other gifts and home décor include items such as glassware, coasters, garden gnomes and flags, foam fingers, stuffed animals, keychains, pens, pennants, ornaments, cornhole boards, trash cans, calendars and umbrellas.
“Much like each person, no two Rally House stores are identical,” a message on the company’s website reads.
“They each carry merchandise customized and tailored to the specific collegiate and professional teams in that area. In additional to team apparel, Rally House offers a wide selection of local styles. This includes our very own exclusive line of RALLY Brand™ merchandise. The same items we have in our stores can also be found online at any time. We want to make things as easy and seamless as possible for fans who want to show their unique team spirit, regardless of wherever they live or shop.”
In addition to selling items relating to local sports teams, Rally House also works in conjunction with local sports stars and celebrities. These partnerships manifest themselves in the form of ticket giveaways, autograph sessions, radio remote contests and meet-and-greet events.
For the latest Rally House updates, follow the business’ pages on Facebook and Instagram. Info: rallyhouse.com.
Allentown updates
New Wawa could take Brass Rail’s spot next to Sheetz
ALLENTOWN, Pa. – The Allentown Planning Commission discussed a preliminary/final land development plan for a proposed Wawa convenience store Tuesday afternoon at city hall.
The proposal is offered for 3015 Lehigh St., the site of the former Brass Rail property. The plan involves consolidating two of the three existing lots, demolishing existing features on the consolidated lot and constructing the convenience store.
Should the proposed Wawa come to fruition, it would operate about 100 yards away from a Sheetz convenience store and gas station. Sheetz opened in August 2023 at the southeast corner of Lehigh Street and 29th Street, near Auto Zone. Additional nearby convenience stores and gas stations include a Turkey Hill on the other side of Sheetz and another Wawa about a mile north on Lehigh Street. Full story here.
Downtown Allentown Market welcomes new food vendor, says goodbye to another
ALLENTOWN, Pa. – The new year is bringing more changes to the Downtown Allentown Market, with one food vendor recently setting up shop and another bidding farewell.
Joining the 27 N. Seventh St. market is Randevoo, offering a twist on traditional Asian fusion cuisine.
Randevoo held a soft opening on Jan. 5 in space that was previously occupied by two other Asian concepts, Shinsen and Honmono Sushi, the latter of which closed in June following the owner’s move to Florida. Read more here.
Lower Macungie news
Lower Macungie planners recommend approval for Topgolf
L. MACUNGIE TWP., Pa. – The Lower Macungie Township Planning Commission recommend approval of a preliminary/final plan of an open-air entertainment facility Tuesday night at the administration building.
The plan, offered by Jaindl Land Co., involves the proposed Topgolf facility at the Lehigh Valley Town Center, slated for 361 Schantz Road and 4511 Cedarbrook Road. The proposed Topgolf and Town Center have already received conditional use approval.
Tuesday night’s recommendation involved the Topgolf facility, which includes a 72-bay golf driving range with a two-story, 20,460-square-foot building and associated parking on 11.5 acres within the Lehigh Valley Town Center. Topgolf will have site access from a private drive in association with the Town Center development. Read more.
New Lehigh County car wash to open later this month, joining 2 sister locations
LOWER MACUNGIE TWP., Pa. – Drivers looking to keep their vehicles in tip-top shape will soon have a new car wash to frequent in the Lehigh Valley.
The Car Wash on Hamilton, committed to providing customers with a “seamless and efficient car wash experience,” is expected to open by the end of January at 6794 Hamilton Blvd. in Lower Macungie Township.
The newly constructed car wash, totaling around 4,000 square feet, will supplement two sister locations: The Car Wash on Broadway, which opened in 2015 at 4540 Broadway in South Whitehall Township, and The Car Wash on West Main, which opened in October at 200 W. Main St. in Macungie. Full story here.
Bethlehem area buzz
Bethlehem restaurant closes, but owners continuing to serve customers via food trailers
BETHLEHEM, Pa. – The owners of a Bethlehem restaurant, serving up burgers, ice cream and more, have closed their eatery to focus on mobile operations.
Husband and wife Norman and Jill Matthews of Bangor have decided to shutter their 3.5-year-old south Bethlehem eatery, Dinky’s Ice Cream Parlor & Grill, and transition to a “completely mobile” business model, according to a post on Dinky’s Facebook page.
“That means we have two trailers, one that is just purely ice cream and the other is a food/ice cream truck,” they announced on the business’ Facebook page. “We will be going to different events, fairs, parties, food truck gatherings and hopefully breweries in the in the surrounding areas. Then we can get caught up with our loyal customers. Read more here.
Family-run restaurant rebrands with new name, look in Bethlehem
BETHLEHEM, Pa. – A popular fast-casual eatery, serving “gourmet quality comfort food,” is kicking off the new year with some changes in Northampton County.
Hummus House, a family-run restaurant known for its fresh sandwiches, salads, wraps and more, has rebranded to HandHeldz at 518 E. Third St. on Bethlehem’s South Side.
New signage was installed on Monday, and the business’ first day as HandHeldz was on Tuesday. Read more.
New expansive facility offers prime training space for athletes, teams in Northampton County
BETHLEHEM TWP., Pa. – A new indoor training facility is helping sports teams, clubs and athletes stay at the top of their game in the Lehigh Valley.
Powerballers Athletic Center, offering year-round training opportunities and a top-tier environment where youth and individuals of all ages can passionately pursue and enjoy their sport, opened in late November at 2550 Brodhead Road in Bethlehem Township.
The 14,000-square-foot facility features 10,000 square feet of flexible turf space, over 1,200 square feet of strength training space, batting cages, certified coaches and a climate-controlled environment. Full story here.
Expanding businesses
HiJinx Brewing Company to bring ‘fun and friendly’ vibe to 2nd Lehigh Valley location
A popular Allentown brewery is expanding its footprint in Lehigh County.
HiJinx Brewing Company, producing a wide array of craft beers that include IPAs, pilsners, porters and stouts, on Thursday announced plans to open an additional location at Sports Factory of the Lehigh Valley, 6616 Ruppsville Road, Upper Macungie Township.
The new location will supplement HiJinx’s original taproom and production facility, a 4,000-square-foot venue that opened in 2014 at the Allentown Economic Development Corporation’s Bridgeworks Enterprise Center, 905 Harrison St., Allentown. The brewery is in Suite 111. Read more here.
A-Treat Birch Beer expands as a fountain soda option at more Lehigh Valley restaurants
A month after announcing a partnership with Lehigh Valley hot dog shop chain Yocco’s, Jaindl Beverage Company – owner of A-Treat soda brand – has announced more local venues carrying A-Treat soda on tap.
In addition to being served at all five Yocco’s locations, A-Treat Birch Beer is now available as a fountain drink at Westside Grill in Upper Macungie Township, Wild Turkey Grill (at The Club at Twin Lakes) in North Whitehall Township and Moselem Springs Golf Club in Richmond Township, Berks County.
Westside Grill, Wild Turkey Grill and Moselem Springs Golf Club are owned by Jaindl Land Development. Read more.
Odds and ends
‘The store of the future’: Dave & Buster’s gears up for grand reopening after remodel
WHITEHALL, Pa. – A popular entertainment facility is ready to level up its services in Lehigh County.
Dave & Buster’s, the entertainment and dining chain that invites guests to “eat, drink, play and watch,” on Friday debuted its reimagined Lehigh Valley location on Friday.
The Whitehall Township location, at 1491 MacArthur Road, opened in October 2020 at a Lehigh Valley Mall outparcel, which was previously home to Friendly’s and Wendy’s restaurants as well as an office building. Full story here.
The Promenade Shops welcomes new tenant, hosting ‘Wonderland on Main’ event
UPPER SAUCON TWP., Pa. – The new year has brought a new tenant to The Promenade Shops at Saucon Valley.
Fulton Bank, offering a broad array of financial products and services in Pennsylvania, New Jersey, Maryland, Delaware and Virginia, on Monday opened its newest Lehigh Valley branch at 3060 Center Valley Parkway, Suite 839, Upper Saucon Township.
The branch offers a variety of services, including deposits, loans, check cashing and safe deposit boxes. Read more here.
Schuylkill County winery earns ‘best white wine’ in Pa. distinction from prominent wine critic
WEST PENN TWP., Pa. – A Schuylkill County winery is making a splash in 2024, with high praise on a well-known wine media platform.
Galen Glen Winery, at 255 Winter Mountain Drive in the Andreas section of West Penn Township, earlier this week received acclaim on JamesSuckling.com, a prominent wine media platform and events company with offices in Hong Kong.
Senior Editor Stuart Pigott labeled the Galen Glen Riesling Lehigh Valley Stone Cellar 2022 as “the best white wine he has ever tasted from Pennsylvania,” according to a Weekly Tasting Report. Read more.
Berks buzz
‘Stay and sip a while’: Folino Estate owners open 2nd Vintner’s Table wine bar and restaurant
WYOMISSING, Pa. – The owners of Folino Estate Winery near Kutztown have opened another tasty venue in Berks County.
Husband and wife Marco and Andrea Folino, who opened Folino Estate in Greenwich Township in 2015, on Tuesday opened a second location of Vintner’s Table – a wine bar and restaurant serving up Folino’s hand-crafted, award-winning wines along with charcuterie and light bites – at 945 Hill Have. Suite 100 in Wyomissing.
“We welcome you to reserve a seat at our table,” an announcement on Vintner’s Table’s Facebook page reads. “Our menu was a labor of love carefully curated to bring you an elevated dining experience full of rustic Italian flavors paired with our award winning wines in a chic and cozy atmosphere that invites you to stay and sip a while.” Full story here.
New golf simulator at Sly Fox has golfers hitting the virtual links
WYOMISSING, Pa. – There’s a new gathering place inside an already familiar spot in Wyomissing that can transport you to dozens of golf courses around the world.
While it’s winter outside, the basement of Sly Fox Brewing, dubbed the Foxskeller, features a whole different vibe.
Golfers are teeing up and taking their swings on brand new golf simulators. Read more here.
Vinyl enthusiasts to descend on Leesport Farmers Market this weekend for ‘Record Riot’
ONTELAUNEE TWP., Pa. – It’s about the search for something special.
“Number one, I’m a collector. All these guys that sell records they all are interested in records, so I’m looking at his records saying ‘What does he have?’ And I saw something I want to buy,” said Record Riot event organizer Stephen Gritzan.
Thumbing through crates of creative work put to vinyl is a physical interaction that seems increasingly rare. Read more.
‘Heavy heart’: Moe’s Southwest Grill location to close after 10 years in Berks County
EXETER TWP., Pa. – An eatery serving up made-to-order burritos, quesadillas, nachos and tacos is ending operations this weekend in Berks County.
A location of Moe’s Southwest Grill, a fast-casual restaurant franchise serving “high quality and fresh southwestern food,” will close on Sunday at 4725 Perkiomen Ave. in Exeter Township.
The restaurant is located in the Exeter Commons, between a Fine Wine & Good Spirits store and L.A. Nails Day Spa. Full story here.
Closing notes
Rite Aid closes Bethlehem store, with another Lehigh Valley location set to shutter on Jan. 15
Two Rite Aid stores in the Lehigh Valley are ceasing operations this month, joining several other regional locations of the pharmacy chain that closed in 2023.
First, a Rite Aid store at 104 E. Third St. on Bethlehem’s South Side shuttered on Wednesday, Jan. 10, according to storefront signage, addressed “Attention: store closure.” Read more here.
American Eagle Outfitters closing Lehigh Valley store
PALMER TWP., Pa. – A well-known clothing retailer is reducing its brick-and-mortar footprint in the Lehigh Valley.
American Eagle Outfitters, a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products, will close its American Eagle store at the Palmer Park Mall in Palmer Township on Jan. 20, a store manager said.
The manager could not comment on the reasons surrounding the upcoming closure. Read more.
Discount variety store closes in Easton area
PALMER TWP., Pa. – A destination for affordable snacks, household items, party supplies and more has closed in Northampton County.
One Dollar Zone!, a discount variety store “where you can find trusted brands and thousands of great quality items for as low as $1.00,” closed a couple of weeks ago at 785 S. 25th St. in Palmer Township.
It’s unclear what led to the store’s closure. A company representative did not return a message seeking more information, and a sign on the door simply reads, “WE ARE CLOSED.” Full story here.
Deciphering annual rent hikes so you don’t have to.
Embarking on the journey of a renter involves more than just finding a comfortable living space; it requires a nuanced understanding of the factors influencing the annual ritual of rent increases. As you navigate the rental landscape with a wealth of experience, delving into the intricacies behind why rent consistently rises becomes essential.
Why does rent increase every year?
Before we dive into the intricacies of annual rent increases, it’s crucial to understand the fundamental factors that typically govern the calculation of rent prices. Rent is generally determined by a combination of market forces, property-specific considerations and the financial goals of landlords. Market dynamics play a pivotal role, with supply and demand influencing rental rates in a given area.
According to The Rent Report, for the month of December, rent was actually down .57% month-over-month and also down 2.09% year-over-year. Just because these numbers reflect a downward trend in rent prices, doesn’t mean rent increases are unlikely.
Landlords or property managers take into account various costs associated with property ownership, such as property taxes, insurance, maintenance and utilities, to ensure that rent covers these expenses while allowing for a reasonable return on investment.
Property upgrades and amenities also contribute to the perceived value of a rental unit, influencing its rental price. Understanding this holistic approach to rent calculation provides a foundation for comprehending why rent adjustments occur annually, particularly for renters familiar with the cyclical nature of the rental market.
Market dynamics
The delicate dance between supply and demand, coupled with economic factors, significantly impacts landlords’ and property managers’ decisions to adjust rental prices. For the seasoned renter, gaining insight into local market trends, economic indicators and neighborhood developments is crucial for anticipating and responding to annual rent adjustments.
Property upgrades and maintenance
Renters recognize that maintaining and upgrading rental properties is an ongoing process. Property maintenance continually invests in enhancing the value of their assets through renovations, repairs and the integration of modern amenities.
As a renter, there should be a balance of understanding and appreciating the correlation between these property enhancements and the incremental uptick in rent. Understanding the motivations behind such improvements provides a nuanced perspective on the annual cost of living adjustments.
Operating costs
Behind the scenes, property management incurs a myriad of operational costs, including property taxes, insurance and utilities. Renters who have rentended many a time before, understand that rent adjustments often mirror the rising operational expenses faced by landlords.
Inflation’s influence
The impact of inflation on everyday expenses is a familiar concept, and rent is no exception. As the cost of living rises, landlords are compelled to raise the rent prices to align with economic realities. Dive into the broader economic context by exploring inflation rates and their implications on the housing market across different regions. Take a look at the handy chart below to see just how rents are changing regionally and nationally.
Regional and National Rent Asking Rent Changes Over Time
Understanding the variables in annual rent adjustments
In the dynamic landscape of rental housing, the expectation of an annual rent increase is not universal, but it is a possibility influenced by various factors previously discussed. Market conditions, property improvements and operating costs are among the key contributors to rental adjustments.
While some renters may experience consistent year-over-year increases, others may find their rents stabilize for extended periods. The predictability of rent hikes often hinges on regional market trends and the individual strategies of landlords. Tenants can mitigate surprises by staying informed about local housing markets, understanding the terms of their lease agreements and being aware of the legal parameters governing rent adjustments in their area.
Proactive communication with landlords can also play a role in negotiating reasonable terms that align with both parties’ expectations. Ultimately, while annual rent increases are a reality for some, the frequency and magnitude depend on a combination of external factors and the particulars of the lease agreement.
Legal considerations
If you’re a veteran renter, you most likely understand that the legality of rent increases is a crucial aspect of the renters process. Landlords must adhere to local and state laws when adjusting rent prices, and awareness of these regulations empowers renters to navigate the rental landscape confidently. In many jurisdictions, landlords are generally allowed to increase rent, but the specific rules vary. For month-to-month leases, there are often legal limitations on how much landlords can raise rent.
Familiarize yourself with the tenant protection laws in your area, as they may stipulate the frequency and maximum percentage by which rent can be increased. Understanding your rights as a tenant ensures you can advocate for fair and legal rent adjustments during lease negotiations.
Negotiation strategies as a renter
Armed with a deep understanding of market dynamics, property upgrades, operating costs and inflation, there are ways to approach lease negotiations with confidence. We recommend keeping a track record of being a good tenant so you have the opportunity to present your case against rent increases should a property manager raise rent to a price you’re uncomfortable with.
If you’ve consistently paid your rent punctually and exhibited good conduct with no noise complaints, the landlord may find the advantages of retaining you outweigh the prospect of additional income. Enhance your proposal by suggesting an extended lease duration, perhaps opting for a two-year commitment to show your value to the property.
Remember to keep the communication open and transparent to reach a mutually beneficial agreement that acknowledges the value you bring as a long-term, reliable tenant.
If you’re worried about increased rent with your current lifestyle, utilize a rent calculator to determine what you’re able to truly afford.
Navigating the rental landscape with expertise
In a renter’s journey, the annual rent increase is not merely a routine occurrence but a multifaceted puzzle to solve. By delving into the world of the rental market, you elevate your ability to navigate the rental landscape with astuteness and finesse. Stay informed, negotiate wisely and ensure that your experience as a renter remains both enriching and economically sound.
If you’re still on the hunt for the perfect rental property, search available properties with Rent. to find the best home for you.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.