by Kathe Barge | Mar 17, 2023 | Blog
DO WE REALLY HAVE TO HAVE OUR HOME PROFESSIONALLY DEEP CLEANED BEFORE PUTTING IT ON THE MARKET?
The short answer is yes, but here is why! When we live in our homes, we don’t see the dirt and the grime build up. Even if you have your home cleaned every week, it is impossible for a weekly cleaning to keep up with the little things. And when you want to sell your home, to achieve top dollar, it is important that your home sparkles at the highest possible level. We are no longer in a market where buyers are happy to get any house. We have moved back to a more traditional market and that means that sellers must take the time and incur the expense of a deep cleaning to make sure your home is squeaky clean and showing its very best.
Deep cleans are expensive and when done properly take many days of work. It is unlikely that your weekly housekeeper (if you have one) is going to have the time to clean at this level. Should you choose to take on the task yourself, you will soon see why deep cleans are costly and time consuming. So what is involved? In every room of your home, every surface must be thoroughly cleaned. Light switches and plugs should have all grime completely removed and restored to new, all vent covers (heating, ceiling fans, appliances) must be removed and washed (some may need to be repainted), all lighting fixtures must be carefully cleaned (including removing any glass bowls to clean inside) and should sparkle, all cabinets and drawers should be cleaned inside and out, windows should be washed inside and out including screens and tracks, carpets should be steam cleaned, shower grout needs to be cleaned, mineral build-up should be removed from shower/bath glass and all plumbing fixtures (try CLR and a scrub brush, or Stanley Steamer if the deposits wont budge), fireplaces need to be swept out and scrubbed down (if you burn wood in them, call a chimney sweep for a professional cleaning). All wood work needs to be washed down or repainted as needed to look fresh. Any smudging on walls needs to be cleaned or painted away.
Outside your home be sure that all doors are clean and fresh, that your porch/deck is clean (power wash if needed), that all lighting fixtures sparkle and that all patios and walkways are freshly power washed.
You may of course find it helpful to employ additional service providers, such as a power washer, carpet cleaner and window washer to get the job done right! It’s a big task cleaning up after years of enjoying a home, but it will absolutely pay dividends when you go to sell.
by Kathe Barge | Mar 17, 2023 | Blog
OUR HOME IS ON THE MARKET – IS IT OK TO SHOW IT DECORATED FOR THE HOLIDAYS?
Decorating for the holidays while your home is on the market is not a bad idea – homes often look their best decorated for the holidays – as long as a few basic guidelines are followed. Briefly stated, when decorating this holiday season, keep your decorations more neutral and reasonably simple.
Start by taking a more minimalist approach. You may have bins and bins of holiday decorations like I do, but when your home is on the market, its best to leave some of those decorations packed away. Choose decorations that have less of a religious theme. Snowmen, evergreen wreaths, poinsettias and nutcrackers, for example, have broad appeal. Be careful that the decorations that you do choose compliment your décor. You may have changed the color scheme in your home since buying your holiday decorations and it’s important that they don’t clash! Don’t over-decorate the exterior of your home either. A few well placed, tasteful strands of lights or an attractive evergreen wreath can add sense of warmth to your home, but keep your inflatables packed up!
If you bring in a tree, make sure it doesn’t overwhelm the room. This year a tall, skinny tree might be the best choice so that the room doesn’t feel small. And of course, consider using decorations to highlight some of your home’s special architectural features, such as using candles to draw attention to an attractive fireplace.
When showings are scheduled, a brewing pot of mulled cider or a plate of freshly baked cookies is not only seasonably appropriate but will go along way toward creating an inviting feel for your buyers. And don’t forget – even if you normally keep your thermostat down, be sure to turn it up for showings so that buyers are comfortably warm!
by Kathe Barge | Mar 17, 2023 | Blog
WE WOULD LIKE TO BUY A NEW HOME SOON BUT INTEREST RATES SEEM VERY HIGH – WE SEE ADVERTISEMENTS FOR INTERNET LENDERS OFFERING WHAT SEEM TO BE BELOW MARKET RATES. IS THIS TOO GOOD TO BE TRUE?
If you were simply refinancing an existing mortgage debt, you MAY be ok choosing an internet lender. You would just need to be very careful that, before you apply to refinance your loan, you receive from the lender a full disclosure of all the costs and not just the rates. Often times I see lenders have exorbitantly high fees connected with low rates. In a sense, you would be buying down your rate by paying high fees upfront. You would want tompare them on the same day to a couple of local lenders and understand what you are paying to get the quoted rates. The reason you must compare rates on a singular date is because rates go up and down continuously and a rate may seem lower simply because you called a particular lender on a date rates dropped.
Since you are buying a new home rather than refinancing, I do NOT recommend that you use an internet lender. They do not tend to be familiar with area norms and that can cause you more headaches than you can imagine. There is a long list of particularities to PA Agreements of Sale and the last thing you want to do is have your closing delayed (while your movers are standing at the curb) while you wait for your lender (who does not have a local presence that you can visit personally to address any issues) to sort things out. As they are not familiar with our Agreements and processes, internet lenders may also impose requirements on you that are not requirements generally imposed by local lenders that may disadvantage you later. Finally, internet lenders often do not understand that PA Agreements of Sale declare “time is of the essence” inside the contract – what that means to you is that if you miss your closing date because the lender isn’t ready to close, the seller does have the legal right to declare you in default, keep your hand money and sell the home to someone else.
When buying, why take a risk? Rely on your trusted Realtor to help you find a local lender who offers the most competitively priced loan products and delivers exceptional customer service. Realtors cannot accept referral fees from lenders, so you can be sure we are motivated only by knowing you will have an outstanding transaction. Feel free to reach out to me for help finding you the best local lender to meet your financing needs!
by Kathe Barge | Dec 1, 2022 | Blog, Buyers, Buying Conditions, Contracts, Helpful Tips, Interest Rates, Market Trends, Mortgage, Property Value, Real Estate
We would like to buy a new home soon but interest rates seem very high – we see advertisements for internet lenders offering what seem to be below market rates. Is this too good to be true?
If you were simply refinancing an existing mortgage debt, you MAY be ok choosing an internet lender. You would just need to be very careful that, before you apply to refinance your loan, you receive from the lender a full disclosure of all the costs and not just the rates. Often times I see lenders have exorbitantly high fees connected with low rates. In a sense, you would be buying down your rate by paying high fees upfront. You would want to be sure to compare them on the same day to a couple of local lenders and understand what you are paying to get the quoted rates. The reason you must compare rates on a singular date is because rates go up and down continuously and a rate may seem lower simply because you called a particular lender on a date rates dropped.
Since you are buying a new home rather than refinancing, I do NOT recommend that you use an internet lender. They do not tend to be familiar with area norms and that can cause you more headaches than you can imagine. There is a long list of particularities to PA Agreements of Sale and the last thing you want to do is have your closing delayed (while your movers are standing at the curb) while you wait for your lender (who does not have a local presence that you can visit personally to address any issues) to sort things out. As they are not familiar with our Agreements and processes, internet lenders may also impose requirements on you that are not requirements generally imposed by local lenders that may disadvantage you later. Finally, internet lenders often do not understand that PA Agreements of Sale declare “time is of the essence” inside the contract – what that means to you is that if you miss your closing date because the lender isn’t ready to close, the seller does have the legal right to declare you in default, keep your hand money and sell the home to someone else.
When buying, why take a risk? Rely on your trusted Realtor to help you find a local lender who offers the most competitively priced loan products and delivers exceptional customer service. Realtors cannot accept referral fees from lenders, so you can be sure we are motivated only by knowing you will have an outstanding transaction. Feel free to reach out to me for help finding you the best local lender to meet your financing needs!
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by Kathe Barge | Nov 14, 2022 | Blog, Design, Helpful Tips, Listings, Marketing, Sellers, Selling Conditions
Our home is on the market – is it ok to show it decorated for the holidays?
Decorating for the holidays while your home is on the market is not a bad idea – homes often look their best decorated for the holidays – as long as a few basic guidelines are followed. Briefly stated, when decorating this holiday season, keep your decorations more neutral and reasonably simple.
Start by taking a more minimalist approach. You may have bins and bins of holiday decorations like I do, but when your home is on the market, its best to leave some of those decorations packed away. Choose decorations that have less of a religious theme. Snowmen, evergreen wreaths, poinsettias and nutcrackers, for example, have broad appeal. Be careful that the decorations that you do choose compliment your décor. You may have changed the color scheme in your home since buying your holiday decorations and it’s important that they don’t clash! Don’t over-decorate the exterior of your home either. A few well placed, tasteful strands of lights or an attractive evergreen wreath can add sense of warmth to your home, but keep your inflatables packed up!
If you bring in a tree, make sure it doesn’t overwhelm the room. This year a tall, skinny tree might be the best choice so that the room doesn’t feel small. And of course, consider using decorations to highlight some of your home’s special architectural features, such as using candles to draw attention to an attractive fireplace.
When showings are scheduled, a brewing pot of mulled cider or a plate of freshly baked cookies is not only seasonably appropriate but will go along way toward creating an inviting feel for your buyers. And don’t forget – even if you normally keep your thermostat down, be sure to turn it up for showings so that buyers are comfortably warm!
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by Kathe Barge | Sep 13, 2022 | Blog, For Sale By Owner, Helpful Tips, Home Improvements, Home Staging, Listings, Market Trends, Marketing, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
Do we really have to have our home professionally deep cleaned before putting it on the market?
The short answer is yes, but here is why! When we live in our homes, we don’t see the dirt and the grime build up. Even if you have your home cleaned every week, it is impossible for a weekly cleaning to keep up with the little things. And when you want to sell your home, to achieve top dollar, it is important that your home sparkles at the highest possible level. We are no longer in a market where buyers are happy to get any house. We have moved back to a more traditional market and that means that sellers must take the time and incur the expense of a deep cleaning to make sure your home is squeaky clean and showing its very best.
Deep cleans are expensive and when done properly take many days of work. It is unlikely that your weekly housekeeper (if you have one) is going to have the time to clean at this level. Should you choose to take on the task yourself, you will soon see why deep cleans are costly and time consuming. So what is involved? In every room of your home, every surface must be thoroughly cleaned. Light switches and plugs should have all grime completely removed and restored to new, all vent covers (heating, ceiling fans, appliances) must be removed and washed (some may need to be repainted), all lighting fixtures must be carefully cleaned (including removing any glass bowls to clean inside) and should sparkle, all cabinets and drawers should be cleaned inside and out, windows should be washed inside and out including screens and tracks, carpets should be steam cleaned, shower grout needs to be cleaned, mineral build-up should be removed from shower/bath glass and all plumbing fixtures (try CLR and a scrub brush, or Stanley Steamer if the deposits wont budge), fireplaces need to be swept out and scrubbed down (if you burn wood in them, call a chimney sweep for a professional cleaning). All wood work needs to be washed down or repainted as needed to look fresh. Any smudging on walls needs to be cleaned or painted away.
Outside your home be sure that all doors are clean and fresh, that your porch/deck is clean (power wash if needed), that all lighting fixtures sparkle and that all patios and walkways are freshly power washed.
You may of course find it helpful to employ additional service providers, such as a power washer, carpet cleaner and window washer to get the job done right! It’s a big task cleaning up after years of enjoying a home, but it will absolutely pay dividends when you go to sell.
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by Kathe Barge | Jun 9, 2022 | Blog, Buyers, Buying Conditions, Contracts, Helpful Tips, Inspections, Listings, Property Updates, Property Value, Real Estate
We find the inspection process confusing – do we have to fix everything in the inspection report before we sell our home or just the repairs the buyer requested?
The home inspection report is the document from which your buyer works to make their repair requests of you. Some buyers will ask for everything and others will ask for only those items that they think are important. They may let some things go, for example, if they are planning on renovating an area and anticipate fixing those items as a part of the renovation.
Once you and your buyer agree on a list of repairs, these are memorialized on an addendum. It is that addendum, called a Change in Terms Addendum (“CTA”), from which you work when completing your repairs. You need not refer to the inspection again unless the CTA references it. You do, however, need to make sure that you do everything on the CTA exactly as specified, so be sure to read it carefully and provide a copy to your contractor(s). For example, if the CTA says that you will have GFCI outlets installed by a licensed electrician then you need to make sure you hire a licensed electrician, and not your favorite handyman, to make the repair! If the CTA says you must paint to match existing then you need to take a sample of the existing paint to the paint store and color match it – don’t rely on old paint in cans – paint fades with age and it won’t match. Be very careful to be sure you are complying with the terms of the CTA – if you do not, or if your contractor does not, your closing may be delayed or postponed until the work is done as specified. Along those lines, be sure to review your contactor’s work when complete and make sure that he actually did what you agreed to do on the CTA. If not, request that he return before it becomes a walk-through issue.
And of course, be sure to get paid receipts from all contractors, or if they have not been paid, notify the closing company so that they can be paid at closing. All repairs must be paid for before ownership changes hands so be sure to stay on top of your bills, and provide receipts to the buyers agent.
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
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by Kathe Barge | May 2, 2022 | Blog, Buyers, Buying Conditions, Contracts, Helpful Tips, Interest Rates, Listings, Market Trends, Mortgage, Property Value, Real Estate, Selling Conditions
With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offers?
Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value. If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home. Your bank will need your new home to appraise so that your debt percentage is not greater than 80%. If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.
If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price. While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.
There is a definite risk that in a hot market you could overpay for a home. Homes are in some circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home. Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.
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by Kathe Barge | Feb 10, 2022 | Blog, Buyers, Buying Conditions, Contracts, Investment Properties, Listings, Market Trends, Mortgage, Property Value, Real Estate
What impact do you think rising interest rates will have on the real estate market?
I can’t tell you how many years the Fed has been warning us that they are going to raise the interest rates, and then nothing happened. But now, it looks like it is finally happening. Less than one year ago, conforming loans with good credit could be procured at rates below 3% fixed. Now they have inched up to 3.75% for conforming loans. While these are still historically great rates, the days of mortgage interest rates in the 3% range appear to be gone and we are slowly inching upward.
What impact will this have on the market? Typically, when rates increase the market slows. Buying power decreases – a buyer will qualify for a smaller mortgage amount when rates are higher. Even if a buyer qualifies for a loan amount, they may not want to pay the added amount each month attributable to the higher rate. Many buyers are cognizant of how much they don’t have available to spend on quality of life purchases, such as dinners out, when they have larger mortgage payments. This boils down to the fact that they may be unwilling or unable to buy at a price they could have last year, and this could depress housing prices.
However, this is counterbalanced by the fact that we are in a market with record low levels of inventory, so it is highly unlikely that interest rates will have any effect on housing prices in the short run. If anything, rising rates should cause buyers to move quickly and lock in homes and mortgages before rates continue to climb. And this would be the most sensible short-term response to rising rates. Buyers – rates are actually going up! The time to act is now!
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by Kathe Barge | Jan 27, 2022 | Blog, Buyers, Buying Conditions, Contracts, Investment Properties, Market Trends, Mortgage, Property Value, Real Estate
We are interested in diversifying our portfolio and purchasing rental properties – any thoughts?
The first thing to keep in mind when considering a rental property is how you intend to pay for it. Rental properties are investment properties and subject to different lending rules than the home that you live in. Therefore, a lender will expect that you put more down as a down payment on a rental property and you will pay a higher rate of interest. Typically, lenders are looking for no less than 20% down on your purchase. And of course until you establish yourself as a successful landlord, your income is going to need to be sufficient to support the mortgage on your primary residence as well as any debt on your rental investments.
The second thing you need to think about is what kind of tenant you are interested in renting to. If you are hoping to rent to a family who might be in town for a couple of years with a temporary job assignment, then purchasing an apartment building with one and two bedroom apartments is unlikely to attract the type of tenant you hope to find. In that scenario, you would be looking for a single-family home in all likelihood (or possibly a townhome) in a good school district such as Quaker Valley. If you are hoping to find young professionals, you might look for something closer to downtown that has a trendier vibe to it.
You also need to take a look at the return on investment that you are seeking from the property. You will need to consider how much you are putting down on the property, how much you were paying in interest on any mortgage that you take out, your property taxes, maintenance of the building, any homeowners association fees, and any utilities that might be the responsibility of the landlord (these are typically utilities that are not separately divided in the particular structure, such as water). Putting together a spreadsheet with all of the expenses and your expected income will help you to determine whether or not the anticipated net income is worth the risk of investment to you. Be sure to build in some vacancy months – most properties are not leased 100% of the time.
Finally, you need to give some thought to how you will manage the property. Are you going to hire a property management company to handle that for you, or will you be more hands-on? Who is going to handle maintenance requests when something goes wrong? The beauty of being a tenant is that if something breaks, it’s not your responsibility to get it fixed. But as the landlord, are you going to be taking care of the repairs and if not, do you have a reliable handyman on-call that is willing to handle those items for you. If you are planning for others to manage the property on your behalf, you will need to build those costs into your financial projections as well. If investment properties are something you would like to consider, feel free to reach out to me and we can discuss these opportunities further.
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by Kathe Barge | Jan 17, 2022 | Blog, Market Trends, Property Value, Sellers
We are in the middle of remodeling and want to make sure we create a home the market will embrace on resale. Any suggestions?
The number one requested item from buyers nationally is a dedicated laundry room – a place where they can spread out and get laundry done (rather than a stackable in a closet). If you have space to include a cute laundry room in your plans, that would be a great investment (and don’t forget to choose energy star rated appliances – younger buyers highly value energy efficiency). Exterior lighting is the most desired outdoor feature – not only will this make your home look phenomenal for twilight photos, but it provides added safety to a home.
Buyers these days are very concerned about energy efficiency, so if you are making changes, be sure to choose energy efficient mechanicals (furnaces, water heaters…), appliances, lighting fixtures and windows.
Your outdoor space will be very important as well. Buyers are very accustomed to seeing gorgeous outdoor spaces on their favorite HGTV shows and if they find one at your home, that will go a long way to driving in top dollar on your sale.
If you are renovating a kitchen, white cabinets remain the gold standard, paired with lighter tops. Double bowl sinks are now considered a must, and a walk-in pantry is a big plus.
Finally, other popular features include a main level full bath, storage in the garage and a walk-in closet (or two) in the owners’ suite. I am more than happy to help guide you on your choices to help insure that they will yield you a great return – reach out anytime!
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by Kathe Barge | Nov 24, 2021 | Blog
Thanksgiving is a great time to reflect on all that we have to be grateful for! Despite remaining in the grips of a pandemic for what feels like a very long almost 2 years, we are fortunate to have excellent medical care, three tremendous vaccines and new treatments for those who do get sick. Blessed we are!
2021 has been another record setting year in real estate despite the ups and downs that the year has otherwise delivered, and I personally have so much to be thankful for. My appreciation goes out to all of the people I work with every day that make real estate transactions so seamless for my clients – from the best mortgage brokers and closers to incredible home inspectors .and handymen, contractors, electricians, roofers… that I can count on to give their best to my clients. With them by my side (or on speed dial) I have been able to provide the highest level of service to those I work with, and for that I am grateful.
I am also grateful to forces I can’t control but that benefit my clients in their transactions. We have been very fortunate to have historically low interest rates for a very long period of time, and a taxing structure that still favors home ownership as an investment vehicle.
Are you taking advantage of all that is available to you? It’s hard to imagine that there will ever be a better time to increase the size of your nest egg in real estate – it just doesn’t get any cheaper to buy than it is today. If you’re ready to downsize and cash in your nest egg, it’s an absolutely ideal time – inventory is low, interest rates are low, and we have buyers waiting in line for Sewickley homes.
In fact, the lines of buyers are so long that if you would consider selling your home, I would be even more grateful! The spring market starts in January – the time to sell is now! Before we say goodbye to 2021, even with all that has been so challenging this year, lets take a minute to appreciate all that we have to be thankful for this holiday season!
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by Kathe Barge | Nov 8, 2021 | Blog, Buyers, Mortgage, Real Estate
We are eager to buy a new home but worry that we may not make a good choice. Any advice?
Surveys have shown that 33% of baby boomer and 64% of millennial home buyers have some level of regret when buying a home, and given the fast-paced market we have been in this year, it is easy to understand why. The leading regrets center around financials – buyer often worry they may not be able to afford the home. Other concerns include the house being mis-sized for their needs, or the location not being ideal. In this market it is important to strike a balance between achieving your dreams and actually getting a house. Inventory is very limited and has been for nearly two years, so holding out for your perfect location, or the precisely correct amenities, may keep you waiting on the sidelines for a very long time. However, there are many things you can do to avoid having financial doubts. Before you enter into a contract to purchase a new home, start with your budget. Make sure you have a realistic idea of how much cash you have available each month after income taxes. Even if a lender can “qualify” you for a mortgage, you may not feel the payments are affordable, depending on how much you need for your monthly “lifestyle” outside of housing. Ask your lender to do a deep dive into your financials and really understand what your monthly payment will be – this number will vary depending on your interest rate, taxes… As you consider whether or not to view a home, look at the taxes, including what they might increase to after you buy the home. Also consider the cost of property insurance as well as some of the costs lenders don’t look at such as utility costs, maintenance costs (this can be grounds, pools, or general household upkeep) and homeowner association fees. Finally, when considering a specific home, consider any deferred maintenance that will need to be attended to in the next 5 years, such as replacing old roofs or heating systems – these items all need to be added into your current budget. Once you have a good sense of what the actual monthly cost of a home will be, make sure that you are comfortable with what is left over. Being “house poor” for a very short term, such as if you are expecting a major promotion, is one thing. Stretching to your maximum affordability long term with no significant income adjustment, however, might start to feel tiresome when you can’t afford the vacations or entertainment that you have come to enjoy. Take the time to do the hard work up front and educate yourself on these factors and you will be far less likely to regret the home choice you ultimately make.
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by Kathe Barge | Nov 1, 2021 | Blog, Buying Conditions, Contracts, Listings, Market Trends, Mortgage, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
Senior couple having finance problems,they are using laptop for online payments.
We are planning for retirement and thinking of paying off our mortgage – is this a good idea?
When it comes to personal finances, there is never a one size fits all answer. Financial advisors will often tell you that investing in the market will, over the long run, yield you a greater return than the interest rate you are paying on your mortgage (this has certainly been true in recent years what interest rates have been historically low). However, markets are unpredictable and unless you are leaving your funds in a savings account at a bank, there is no guarantee you will not have a negative return in the market (see, for example, 2008). Additionally, if you pay off your mortgage, you are not getting the tax benefits of the mortgage deduction (available for mortgages up to $750,000 in size).
However, the counter argument is equally, if not more, compelling for many people. Without a mortgage, you are freed from having to worry about whether you have enough cash each month to pay your mortgage. Without a mortgage, your monthly expenses will likely be significantly lower. This not only allows you peace of mind, but would also allow you more monthly cash to spend on things you want to spend on, whether they be trips, gifts, or just more “experiences.” If you ever sell your home, you will have a much larger nest egg to move to your next residence, whether it is to be closer to children or grandchildren in another location or whether it is into a retirement community (many of which do you have substantial deposit requirements). Finally, there is no “risk” to the return you will get by paying off your mortgage. You know what your interest rate is on your mortgage and how much of a savings you will get each month when you pay it down.
However, it is never advisable to completely deplete your savings just to pay off a mortgage. If paying off your mortgage would substantially reduce or eliminate your emergency fund, then it is not a good idea. If, however, you still have a few years until you retire and are able to pay down the mortgage at a significantly faster pace by increasing your monthly payment or by making a lump sum payment each year (perhaps designating a portion of a bonus that you receive toward your mortgage payment), tell me this is absolutely an option you should give some serious consideration to.
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by Kathe Barge | Oct 11, 2021 | Blog, Buyers, Buying Conditions, Contracts, Market Trends, Mortgage, Real Estate
Do you have any tips on how to get through the mortgage process as smoothly as possible?
I certainly do! Below are a few pointers on what you should not do if you want your mortgage to move smoothly through the process! This is critically important these days when competition is more intense for homes!
- Don’t quit your job
- Don’t change your job
- Don’t get a promotion
- Don’t buy any large ticket items (like five hundred dollars or more!)
- Don’t make David Copperfield deposits (all funds need to be traceable)
- Don’t forget to tell anyone making a funds gift to you that you will probably need a gift letter and some proof (usually a bank statement) that they had the money to give
- Don’t forget to tell the lender about child support, alimony, wage garnishments or any other payroll reduction
- Don’t co-sign for even a candy bar!
- Don’t schedule a vacation before we close (especially a cruise)
- Don’t order Direct TV, Cable, Telephone or any utility that will pull a credit report unless you want to write a letter of explanation about the credit report to the mortgage company
- Don’t change your name during the mortgage process
- Don’t go window shopping and let people pull your credit
Assuming that seems pretty straight forward to you, below are a few more choices some buyers make that make the process more difficult than it needs to be:
- Not being up-front with your loan officer (hiding information)
- Finding a lender on the internet that offers an unbelievable low interest rate
- Using a 100% Online Lender
- Not using the name on drivers licenses for mortgage docs (use Jr. and Sr. if required)
- Not telling your lender if you lose your job before you close
- Not shopping for the lowest costs and best rates
- Delaying paperwork because you are irritated by the frequency and number of requests from the mortgage company
Take these pointers to heart and you will greatly simplify your mortgage process!
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by Kathe Barge | Oct 5, 2021 | Blog, Buying Conditions, Home Staging, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers
We are moving toward retiring and downsizing. Is there anything we should be thinking about as we move toward this goal?
One very important thing for you to consider is how you plan to pay for your retirement home. If you are thinking you want to finance your home with a mortgage, you are going to need an income stream that the lender can use to qualify you for the loan. Simply having a large bank account is not enough – the lender will need to see that your assets are generating enough income to pay for the mortgage and associated home ownership costs. You may not have your assets invested in income producing investments and may instead be invested in appreciating assets. Lenders will not consider capital gains when qualifying you for a mortgage, although they will generally look at your social security income if you are receiving that. Many buyers are surprised by this issue, and find themselves retired with no regular income stream and unable (probably for the first time ever) to get a mortgage.
You do have options of course! You could plan your downsize move BEFORE you retire so that you still have your employment income stream that can be used to qualify for a mortgage. It is very important that you have not announced your retirement before purchasing the retirement home, however. The lender will verify your continued employment right up to your closing date, and if they hear from your employer that you are retiring, you may lose your loan.
You could also plan to pay cash for your retirement home. If you plan to go this route, you will want to make sure you have saved sufficient funds. If you are planning to use your equity in your current home to buy your retirement home, you will need to consider how to bridge the gap between selling your existing home and buying the next one – there are many options available to you. If you are planning a retirement and a move, please reach out to me in advance – I can help you strategize for a successful transition on all fronts.
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by Kathe Barge | Sep 29, 2021 | Blog, Market Trends, Property Updates
Both our bathrooms have claw-foot tubs which I am thinking of replacing with walk-in showers. What is the value of having a tub in the bathroom in place of a shower or in addition to a shower?
Every home must have at least one bathtub. A prospective buyer might have kids or just like a good soak and many will reject a home if there isn’t a tub available. More often than not, if there is only one tub in a home it is in a kid’s bathroom, and this is most commonly configured as a tub/shower combination. There could be a tub in the master bathroom as well, but only if there is abundant space. If you have to choose between a large, luxurious (spacious) shower in the master or a tub/shower, ditch the tub and go for a pure shower. If there are multiple kids bathrooms, then only one needs to have a tub. Typically, that tub is not a claw foot tub unless it has a shower ring (which is not tremendously appealing). When claw foot tubs remain, they are typically in a bathroom that has plenty of room for both a shower and a tub. Re-glazed, these antique tubs can be the focal point of a remodeled luxury bath.
As far as value goes, value is really only recouped if you remodel the entire bathroom. In other words, if you put in a new shower but leave the old floor tile and old vanity, you really have added no value. If you redo the whole bathroom, you will likely recoup more that what you pay to remodel the bathroom, as long as you shop smartly when doing your remodel and sell your home while the bathroom still feels current (under 15 years). It is also very important to make choices that are classic and stand the test of time if you don’t want your home to feel dated sooner rather than later. I suggest, given the age of your home, that you make classic choices — Carrera marble, white subway tile, and silver-tone fixtures would all be timeless choices appropriate for an historic home.
Of course, I am available to provide on-site advice if that would be helpful to you as you have many options – give me a call – I’m happy to provide my free advice!
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by Kathe Barge | Sep 17, 2021 | Blog, Buyers, Buying Conditions, Listings, Market Trends, Property Value, Real Estate, Sellers, Selling Conditions
Are you starting to see the market cool down at all yet?
The answer to that question is both yes and no. In part it depends upon the price range that you are looking in or are selling in. Our homes priced under $500,000 are still selling quite readily and often with multiple offers. However, the buyer pool is definitely smaller right now. And at the higher end, while offers are still being received, the pool is much smaller than it was a couple of months ago.
This does not mean that sellers are not doing well with their proceeds – they are. But if you are a buyer, what this means is that there is an opportunity for you to be able to buy a new home without having to compete with a dozen people. You may still be competing with a couple of other buyers. It’s still very important that you be fully preapproved for your home purchase so that you present yourself in the best possible light to the seller, but you have a much better chance of winning at this point in the year. So if you’ve been sitting on the fence waiting for a chance to buy a new home in a more manageable market, this would be that market. At this point we are definitely expecting another busy spring market so if you are hoping to buy, the fall market will be your very best opportunity to do so without the overwhelming crowds that a spring market brings.
If on the other hand you have been sitting on the fence hoping to see a downturn in the market so that you can jump in and get a buy, I wouldn’t hold your breath. There is absolutely nothing to suggest that we are going to see a downturn in our market. I have watched the market carefully for many many years now and just when I think that the housing prices are ridiculous and there has to be a softening coming, another selling season opens and prices are even higher. Excepting 2008, which there are no indicators to suggest will happen again in the near future, our prices continue to steadily climb (and even in 2008 we did not see a housing crash – we just remained stable for a year or two with no additional appreciation).
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
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by Kathe Barge | Sep 14, 2021 | Blog, Home Staging, Listings, Market Trends, Real Estate, Sellers, Selling Conditions
We are thinking about selling the home we have lived in for 25 years but it seems like such a daunting task. Do you have any advice?
If you are like most people who live in their homes for multiple decades, you have undoubtedly collected a lot of treasured memories in the form of physical objects. Your son’s first “big boy bed,” your daughters first bike. The furniture from your first apartment that you saved, certain one of your children would want it some day. Whatever it is, a move to a smaller home means that you are going to have to part with much of what you have collected.
For starters, you need to give some thought to how much you will be downsizing. If you are planning to move from a 4000 SF home to a 1500 SF condo, you have a lot of clean-out to do. If you are moving from 3800SF to 3000SF, you will not need to dispose of as much. I do recommend that you start your clean-out right away. Your home will show much better if it is emptied of your “collections” and presents in a more minimalist way.
If you need help, a professional home organizer is your best first step. An organizer can help you break down the process into manageable pieces and formulate a plan for the coming months. You should anticipate that the process will take several months, maybe even a year. Whether you use a professional or not, you should review all of your belongings to determine what you really NEED for your next adventure, and discard the rest. If you have items that hold treasured memories, consider photographing them and creating a “Memories” book.
Even if your move is years away, now is a good time to get started on those areas of your home that you don’t regularly use anymore, such as adult children’s rooms. Pack up their favorite things in Rubbermaid bins that you can easily send to their new residences someday and re-home the rest! For all of your “no longer needed” items, there are so many wonderful charities that will take them, and in addition to getting a home ready to sell and easily moved, you will get a tax deduction as well for your benevolence! If you need help finding these organizations, or a professional organizer to get you started, feel free to give me a call!
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
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by Kathe Barge | Sep 7, 2021 | Blog, Buyers, Buying Conditions, Contracts, Inspections, Listings, Market Trends, Marketing, Mortgage, Property Value, Real Estate, Sellers, Selling Conditions
We hear selling a home can be a trying process. Any annoyances a seller should be expecting?
Below is a short list of many of the “joys” sellers might experience during the listing process. Being aware that these are possibilities will hopefully help you take them in good humor if they happen to you!
- The agent showing your home will miss appointments and not call or show up.
- Appointments will be made and cancelled at the last minute.
- Some showings will last about five minutes and some will last 3 hours.
- There will be a day when I call you and say someone wants to see your house, and you are going to ask me when. And I will say: “Look out your windows, they are sitting outside now”!
- Agents are going to knock on your door or even drive by, see you in the yard and ask if can they see you house.
- Agents showing your home will forget to turn lights off.
- Agents showing your home will let your pets out (best to remove them from your home for showings) or your neighbor’s pet in.
- Agents will provide unhelpful feedback – buyers buy homes when they attach emotionally to a home and when they don’t, their feedback is often nonsensical.
- Agents will not provide any feedback – incredibly annoying, I know.
- Expect lowball offers (at least it is a starting point). If your home has been on the market for more than a month, there is a reasonable chance that you priced it too high – maybe the lowball isn’t as low as you think.
- Things will come up on the inspection that you had no idea were wrong with your home and you will be sure the inspector made a mistake. A pre-inspection is a great way to protect yourself against this!
- The buyer will make ridiculous inspection requests.
- The buyer will ask to bring in contractors for estimates for work they want to do after the closing at the seemingly most inconvenient times.
- The property might not appraise at what you are selling it for. In a hot market like this one, this is a real risk. Be prepared to adjust your price if your sales price is over the listing price and it doesn’t appraise.
- The closing date on the contract may change. Lenders and closing companies remain swamped right now – be open to the possibility of a delay.
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by Kathe Barge | Aug 18, 2021 | Blog, Buyers, Buying Conditions, Contracts, Listings, Market Trends, Mortgage, Property Updates, Real Estate, Sellers, Selling Conditions
We have been sitting on the sidelines for a while now waiting for a home that meets our wish list to come on the market – what’s coming this fall?
You might be surprised to find out, you are one of dozens of prospective buyers sitting on the sidelines waiting for their ideal home to come on the market. Nationally we are at a 20-year low in available housing inventory. What is going on you might ask?
Many blame it on the Baby Boomers! Seventy-eight percent of Boomers own their own homes, and 85% of them have no intentions to move within the next year. This is tying up a significant portion of potentially available housing inventory. Why aren’t Boomers moving? Stated reasons range from being happy where they live and not wanting to uproot their lives, to having inadequate choices in empty nester inventory to escalating prices that make scale down homes more and more expensive. Boomers are reportedly less interested in destinations like Florida and Arizona these days and are choosing to stay in the homes and communities where their family and friends are.
In Sewickley, we have very few opportunities for scale down housing, and so Boomers are remaining in their homes. As a result, our inventory continues to dwindle and there are very few new introductions. There will likely be a few relocations, but with the low inventory and large backlog of buyers, I expect pricing will be high and bidding wars will continue.
To be successful in this housing market, if you define success as actually getting a home and moving, you are going to have to accept a few key premises. First, you need to reevaluate your wish list and see what compromises you are willing to make. We still have many nice homes on the market – they may not be a perfect match for you, but could you make one work? You are more likely to receive a discount on a home that has been on the market. Second, if you decide to wait and a home comes on the market that is a good fit for you, be prepared to act fast and bid high. Complete the preapproval process now so that your offer is as strong as possible.
Our market is a steady one and I do expect we will see some new introductions as we move into fall, but your best recipe for success is one that includes reevaluation of the current inventory, compromise, fast action and generous, well crafted offers.
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by Kathe Barge | Jul 21, 2021 | Blog, Buyers, Buying Conditions, Contracts, Home Staging, Inspections, Listings, Marketing, Property Updates, Property Value, Real Estate, Sellers, Sellers-Contracts, Selling Conditions
Our home went under agreement quickly! When we moved in we installed expensive hardware that we really love (door knobs, switch plate covers, towel rods, etc.). We would like to take it with us. Can we substitute other items before we close?
Absolutely not! First of all, with a quick sale you likely got a high price or your home and when a buyer is paying top dollar, it is not appropriate to start pulling things out of your home! Additionally, any item that is affixed to your home with a screw, nail, etc. must convey with your home unless you have specifically excluded it from your agreement of sale. Unless you raise this question during negotiations and your buyer agreed prior to signing the agreement, the items must remain with your home.
About 20 years ago I represented a buyer of a home that was remodeled with high-end Restoration Hardware items – cabinet knobs, towel bars… After we agreed on a price but before closing, we returned to the home to discover that the sellers had removed the expensive Restoration Hardware items and installed baseline builder items from Lowes. This was not what my client had seen when they toured the home and not what they had agreed to purchase. The seller ended up providing a $7000 reduction in the purchase price to make up for the items that had been switched. I’m not sure if the buyer ever replaced the items – what is relevant was that the removal of the high end items made the home less valuable.
If you find yourself heading toward a closing and you are just realizing that there is something affixed to your home that has sentimental value that you forgot to exclude, you can certainly ask your buyer if they would agree to a substitution – most buyers will allow removal of a sentimental item if you replace it with a like value item. Absent buyer consent or upfront exclusion, all affixed items must stay. Items that are occasionally inappropriately removed include: appliances, doorknobs, switch covers, towel bars, curtain rods, mailboxes, attached shelving and TV wall mount brackets. Mirrors that are attached must stay. Those hanging on hooks can be removed if you have to have them (although most buyers do expect them to remain).
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by Kathe Barge | Jul 6, 2021 | Blog, Buyers, Buying Conditions, Listings, Market Trends, Property Updates, Property Value, Real Estate, Selling Conditions
It seems like there have not been very many new homes coming on the market. Why do you think there is such an inventory shortage and when do you think it might change?
In my professional opinion, there have been many factors that have led to the current inventory shortage. The first dates back to the recession of 2008. At that time many homebuilders got stuck carrying their spec homes for lengthy periods of time, which cut into or eliminated all of their profits. In order to hang on during this challenging period, builders cut back significantly on what they were building for the market, and to this day have not recovered to 2008 levels. With fewer homes being built, there are fewer opportunities for people to make moves. The pandemic has only compounded this problem. There are many shortages in electronic component parts that are causing shortages in appliance availability, for example. The cost of raw materials also skyrocketed during the pandemic, making it almost unreasonably expensive to build a new home.
On top of this, we have a very large generation, the millennials, entering the home buying market for the first time. The millennials as a generation are comprised of 88 million individuals (as compared to the 80 million individuals that comprised the baby boomer generation), many of whom delayed buying a home until a bit later in life. This very large generation, many of whom have double incomes, is now surging into our home buying market. However, the baby boomers, the youngest of whom are now 56 years old, are often not ready to downsize, and when they are, they are often finding that there aren’t many acceptable alternatives to move to. Most boomers, when asked to describe their ideal Sewickley down-size opportunity, would describe a village patio home with a main level master suite and a small spot to be able to garden. We have very few homes that fit this bill. Often their mortgages on their current homes are paid off making it reasonably affordable to stay put in their current homes and so many boomers are simply electing to age in place. The lack of affordable and appealing scale-down opportunities is a pervasive theme across our market generally (not just Sewickley) and is contributing to the chokehold on inventory availability.
Unfortunately, I do not see any of these factors changing in the short term. To release the chokehold on area inventory, we are going to need to see builders jumping back into construction (which will require a decrease in materials pricings and an increase in the willingness of laborers to show back up to the job). We are also going to need to see some of the baby boomers moving out of their bigger homes, whether it be to a local down-size community or to warmer weather! In the meantime, buyers are going to have to adjust their expectations and be more willing to accept homes that may not check all of their boxes, and will probably have to allocate more funds to get into these homes as sellers are well aware of the captive market buyers are in.
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by Kathe Barge | Jun 28, 2021 | Blog, Buying Conditions, Home Staging, Market Trends, Property Updates, Property Value, Sellers
We would like to start cleaning out our home but don’t know what to do with all of our stuff – any ideas?
The first thing you need to assess before you begin your clean out is whether you have any collectibles – anything of real value. Generally speaking, this does not include your furniture, unless you have some very high-end antique pieces. Used furniture is very hard to rehome unless it is a trendier Pottery Barn, Restoration Hardware, West Elm or Arhaus piece. Yes, we all have a few of those solid mahogany pieces, such as the Chippendale dining room chairs, and it’s just not what people are looking for these days. If you have a trendier brand name, you may be able to get some money for it but if not, you will probably be lucky to give the pieces away or resell them at a very small profit.
To the extent that you have high value items, if they are extremely high value, then there are a few auction houses that would handle that for you and get you the top dollar possible with their online auctions.
Assuming you don’t have any very high value items, the next decision you will want to make is how much effort you want to put into selling your items. The easiest option is to donate the items to charity. There are many organizations that will come and pick them up at your home (although I have noticed some organizations are charging a pick up fee these days). Of course, you can always drop the pieces off at the organizations. The Presbyterian Church is also planning to run their Day on the Lawn again this year and have drop off days scheduled throughout the summer.
If you were hoping to get some money for your items, then you will need to think about how much effort you want to put into this endeavor. The most cost-effective alternative to sell your own things is to sell them through either craigslist, ebay or Facebook marketplace. However, this does take a time commitment on your part. If you really do not want to expand any effort, then there are several organizations locally that will pick up your items and auction them online. Typically they will keep 30 to 40% of the proceeds, but that may be worth it to you to not have to “lift a finger.”
Finally, if you have items that are just not salable (for example, old car seats) there are also local organizations that will come and haul the items away for a small charge. There is even one local organization which will haul everything away for you and then separate out what is salable (and will sell them for you), donatable (and will donate them for you) and simply trash. If you would like more information on how to connect to any of these organizations, feel free to reach out to me anytime! Good luck with your clean out!
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
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by Kathe Barge | Jun 18, 2021 | Blog, Buyers, Buying Conditions, Contracts, Inspections, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers
It seems buyers can be very picky on home inspections. What should a seller expect?
What a Seller needs to be prepared for on a home inspection needs to be evaluated in the context of the entire deal! Both buyers and sellers need to keep things in perspective. If a Buyer got a great deal on a home, then the inspection should be more about major things that the Buyer could never have known about. If a Seller got top dollar for a home, the Seller should expect to be very generous on the inspection resolution with the buyers. Sellers do need to expect that a buyer paying asking price or above will expect the inspection items to be addressed by the Seller unless the Seller had disclosed them on the Disclosure.
The Disclosure is a Seller’s friend. What a Seller discloses is supposed to be outside the scope of inspection requests. These are items that the Buyer should be taking into account when making their initial offer. Therefore, when filling out the Disclosure, Sellers will want to review it carefully to be sure it is thorough. Inspectors do not miss anything these days, so it will be far less of a financial blow to a seller if all possible issues are noted up front.
Of course, a pre-inspection may be a Seller’s best approach for a smooth transaction for all parties. While a seller will spend approximately $400 up front, it gives you a chance to repair or disclose the issues before they possibly destroy a deal. Remember, if buyers and sellers can’t come to a resolution about inspection concerns, the deal is terminated and both parties move on. Sellers, you obviously want to sell or you wouldn’t be undergoing the joy of preparing your home for showings. Keep the big picture in mind and understand that unless you are giving your home away, your buyer will expect you to fix what you didn’t disclose. Don’t like the sound of that? Pre-inspect so you know what you will have to address upfront.
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by Kathe Barge | Jun 16, 2021 | Blog, Buyers, Buying Conditions, Contracts, Listings, Market Trends, Mortgage, Property Value, Real Estate, Sellers, Sellers-Contracts, Selling Conditions
With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offer?
Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value. If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home. Your bank will need your new home to appraise so that your debt percentage is not greater than 80%. If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.
If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price. While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.
There is a definite risk that in a hot market you could overpay for a home. Homes are in many circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home. Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.
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by Kathe Barge | Apr 20, 2021 | Blog, Buyers, Buying Conditions, Listings, Market Trends, Marketing, Property Value, Real Estate, Sellers, Selling Conditions
How exactly do we know what our home is worth?
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
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by Kathe Barge | Feb 21, 2021 | Blog, Buyers, Buying Conditions, Home Staging, Inspections, Market Trends, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
Sometimes it seems like everything is breaking around our house and we get behind on repairs. Isn’t there some level of wear and tear buyers of “previously enjoyed” homes are expecting to have to accept?
The process of selling and buying a home involves many fine lines. How far do you take preparing your home for sale? Do you really need to address all of the items suggested by your agent, the home stager or the home inspector who did a pre-inspection? Do you really have to attend to everything your family has broken or worn out over the years? Anything that could come up on an inspection, if you know about it, really must be repaired or disclosed. My vote is repair. Even with items that are very obvious, when an inspector gets involved, he may blow the issue out of proportion and something that might have cost you $1000 to repair before you listed ends up costing you $3000 on the inspection request. If it’s something an inspector might find, you can bet he will find it and you will be expected to cover the cost of repair anyhow, so you might as well repair upfront.
Many buyers actually get quite nervous during the home inspection (also known as buyers remorse). If you happen to get one of these buyers, it is possible that they could walk away from your deal if the inspection concerns feel too weighty to them. After you actually receive and negotiate the offer, the last thing you want to do is lose the buyer over items that you could have fixed but that you didn’t think anyone would notice or care about! In today’s market, they notice, they care. Sometimes they are willing to let you pay for the repair. Sometimes they just walk. Don’t take any chances. If you suspect it is likely someone would seek a repair, get it done!
Buyers, as much as I advocate for sellers to take care of the wear and tear items on their homes, it is important for you to be reasonable on your inspection requests as well. If you see an item that needs to be fixed while you are touring the home, take that into account when you make your offer and do not revisit it on the inspection. Inspection requests are supposed to be for items you didn’t know about and didn’t have a chance to adjust for in making your offer. Again, it’s a fine line buyers also walk in deciding what are fair and appropriate inspection requests of a seller.
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by Kathe Barge | Nov 30, 2020 | Blog, Buyers, Buying Conditions, Home Staging, Inspections, Market Trends, Property Updates, Property Value, Real Estate, Sellers
If there was one thing you would advise us to do to our home as we continue our months “at home,” in this global pandemic, what would that be?
Whether you are planning to sell your home this coming year or not, the best thing you can do to your home is a home inspection! We all live in our homes but rarely take the time to stop and give them a careful look. Weather beats up the outside of our homes year round. Caulking fails, flashing fails, paint peels and exposes wood to rot. We forget to clean our gutters on a regular basis – gutters and downspouts fill with decaying debris, causing water to back up into our homes and cause mold problems. We forget to have our furnaces serviced and fittings loosen and cause condensate to leak and rust our furnaces. The list goes on and on. Simply living in and not doing a regular check up on your home, you are leaving it open to the possibility of major repair bills later and major depreciation in your investment’s value. A home inspection will give you a to do list of projects to tackle throughout the year to keep your home in great shape and maintain its value!
You may not think about this until you go to sell your home. Some of the wear and tear may be obvious to a buyer, who will typically have checked out every available home, be able to see signs of your “benign neglect,” and pass on yours because of its comparatively negative condition. Even if a buyer doesn’t’ notice at first, there is no doubt that a home inspector will notice! After working hard to get your home sold, you may find yourself in the all too common situation of being presented with a long list of inspection requests that you need to complete in order to hold your deal together, or worse yet, a buyer who backs out of your deal because the house needs “too much work,” leaving you in the position of having to fix everything and start all over again. A homeowner should expect simply keeping a home in acceptable condition will cost them $3,000 – $10,000 a year, depending on the size of the home – some years will be more if its time for a major project, and some less. If you’re not investing this, chances are someday you will when you are faced with a long list of inspection issues.
So while you remain “at home” waiting for the day the vaccine arrives, why not give your home a check up and attend to its needs! Give me a call if you need the names of reputable local inspectors.
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by Kathe Barge | Nov 23, 2020 | Blog, Buying Conditions, Home Staging, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
We need to replace our appliances. Any recommendations?
It’s a great time of year to be buying appliances – you may be able to grab a great black Friday deal! However, do be prepared for a wait – the pandemic has brought on an “appliance shortage” and you may need to wait several months for yours!
When choosing new appliances, my first recommendation is that you choose Energy Star certified appliances for several reasons. First – check with your electric supplier before you shop, but rebates are available from many electric companies when you purchase designated Energy Star appliances. Second – you will save money every month on your electric bills. Third – and most important from my perspective – younger buyers tend to be concerned about energy efficiency and often ask for utility bill information on homes they are considering. Energy efficient appliances are a selling point and will enhance the value of your home (don’t forget to point that out when you list!) As more young buyers enter our buying market (and they are buying across all price ranges), this could be an important differentiator for your home.
I still recommend that you choose stainless appliances. While there are many options out there including some pretty interesting colors, I still see buyers responding most favorably to stainless. Sure, they might be harder to care for (you will need a can of stainless polish in your cleaning cupboard), but the look is still quite appealing and “professional.” There is, however, one circumstance when I do not recommend stainless for replacement appliances. If your kitchen has another color appliance (white or black, for example) I do not recommend replacing only one appliance with stainless. If there is one thing buyers uniformly dislike it is mismatched appliances (unlike color, mixing brands is fine). So if you currently have white appliances and don’t think you will be replacing the other appliances soon, stick with white. Even though white (or black) does not have the same appeal that stainless does, a kitchen with two white (or black) appliances and one stainless is the least appealing of all!
Finally, it is worth noting that it is more the look than the brand that is important to buyers. As much as we all like to think the high-end brands are important to people it’s not what I am seeing on the selling side. If the appliance has a good look, buyers are not stopping to ask what the brand name is! So choose the brand that appeals to you – be it a budget decision or a features decision – and enjoy it while you are still in the home!
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by Kathe Barge | Nov 10, 2020 | Blog, Home Staging, Listings, Market Trends, Marketing, Real Estate, Sellers
How important do you think it is to have a visual tour as part of marketing a home in today’s home selling environment?
Visual tours are an essential part of every home sale. National Association of Realtor studies show that the majority of all home buyers start their search online, and almost all buyers will ultimately make online shopping a part of their home buying process. So while print media remains an important piece of any marketing campaign, it is critical that your online presence be top notch.
A premier online marketing campaign begins of course with professional quality photos. Wondering how important this really is? Spend an hour perusing the local listings online and check out the difference between the photography of agents who clearly employ a professional and those who do not – those with professional photos really stand out!
Once online, the more time a buyer spends viewing your home, the greater likelihood they will develop an interest in coming to see it. We consider every online viewing the same as an in-person showing – it is the initial visit by which a buyer will give your home a preliminary thumbs up or thumbs down. A visual tour is an important piece of that online viewing – with a visual tour available, a buyer will spend more time considering your home. I personally narrate all of my visual tours, giving the buyer even more information about your home, which will hopefully peak their interest in coming to take a look. Visual tours are also easily shared with friends and family. These days, buyers are eager to know what their most trusted circle thinks – and having a beautifully presented visual tour will make it easy for them to solicit that support.
The internet is a tremendous asset to home sellers when used effectively. Not only does it allow you to cast a wider net and be seen by exponentially more prospective buyers than ever before, but it allows the buyers to make an initial decision about whether your home is a contender, which saves everyone a lot of time. When done well, a visual tour can help put your home on the list of contenders, and ultimately help make it the chosen one!
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by Kathe Barge | Oct 30, 2020 | Blog, Buyers, Home Staging, Listings, Market Trends, Marketing, Property Value, Sellers, Selling Conditions, Sewickley
Our home is on the market – is it ok to show it decorated for the holidays or should we take it off the market?
Buyers who are shopping during the holidays are some of the most serious buyers we see each year – most people don’t bother spending their precious holiday time looking at homes unless they have a need to buy. So keeping your home on the market over the holidays is generally a good idea!
Decorating for the holidays while your home is on the market is also not a bad idea – homes often look their best decorated for the holidays – as long as a few basic guidelines are followed. Briefly stated, when decorating this holiday season, keep your decorations more neutral and reasonably simple.
Start by taking a more minimalist approach. You may have bins and bins of holiday decorations like I do, but when your home is on the market, its best to leave some of those decorations packed away. Choose decorations that have less of a religious theme. Snowmen, evergreen wreaths, poinsettias and nutcrackers, for example, have broad appeal. Be careful that the decorations that you do choose compliment your décor. You may have changed the color scheme in your home since buying your holiday decorations and it’s important that they don’t clash! Don’t over-decorate the exterior of your home either. A few well placed, tasteful strands of lights or an attractive evergreen wreath can add sense of warmth to your home, but keep your inflatables packed up!
If you bring in a tree, make sure it doesn’t overwhelm the room. This year a tall, skinny tree might be the best choice so that the room doesn’t feel small. And of course, consider using decorations to highlight some of your home’s special architectural features, such as using candles to draw attention to an attractive fireplace.
When showings are scheduled, a brewing pot of mulled cider or a plate of freshly baked cookies is not only seasonably appropriate but will go a long way toward creating an inviting feel for your buyers. And don’t forget – even if you normally keep your thermostat down, be sure to turn it up for showings so that buyers are comfortably warm!
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by Kathe Barge | Oct 26, 2020 | Blog, Buyers, Buying Conditions, Home Staging, Listings, Market Trends, Marketing, Property Value, Schools, Sellers, Selling Conditions
I’ve heard a lot about having my home professionally staged – I think my home is well decorated – is it something I need to do?
Home staging is more about marketing a home and less about interior design. Your home could be beautifully decorated and poorly staged. The distinction is critical if your main focus is getting your home sold. Interior design is often about creating a home that reflects you personally and showcases your personal effects. Home staging is about decluttering, neutralizing and showing off your home’s best qualities. It is after all, your home that you are selling, and not your stuff!
Home staging consultations generally cost less than $400 and are well worth the investment when you consider the size of the asset you are selling and your hoped for gains. Home stagers often stage hundreds of homes each year and are very familiar with how to tweak a home to make it as appealing as possible to today’s buyers. We’ve all heard stories about home sellers in California who pack their entire homes up and bring in a new home of rented furniture to stage the home to sell. Home staging does not have to involve renting expensive furniture. It is sometimes an excellent idea however—if you bought your “dream home” and didn’t have time to furnish it with furniture appropriate to the home’s value, for example, renting furniture is likely a sound investment and will give the home the feeling that it is of a higher caliber. Most of the time, however, a home stager will work with what you have, although some of it may find its way into storage for the duration!
Offended at the concept of stripping your decorating from your home? It is important to keep your end goal in mind – you are moving. This is not about impressing your friends. It’s about showcasing your home so that prospective buyers appreciate all that it has to offer. A home’s positive attributes are often missed buyers when they are too busy focusing on your stuff. Whether they like your stuff or not, you want them admiring your home – not what you have in it. Home staging is designed to make your home – that which you intend to leave behind – sparkle – a stager eliminates, rearranges and augments to enhance the impression buyers have of your home. So yes, no matter how beautiful your décor, I strongly recommend a home stager, and working with your agent as you implement what she recommends!
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by Kathe Barge | Oct 20, 2020 | Blog, Buyers, Buying Conditions, For Sale By Owner, Listings, Market Trends, Marketing, Pittsburgh, Property Value, Real Estate, Schools, Sellers, Selling Conditions, Sewickley
Do you think living in a top ten school district adds value to our homes?
Absolutely! There is no doubt in my mind that living in the Quaker Valley School District, ranked in the top ten in Western Pennsylvania, adds both value and sale-ability to our homes. We are fortunate to live in a district with well state-of-the-art elementary and middle schools and a hard-working board that continue to work to keep the caliber of our schools at a very high level.
How do these impressive rankings translate into more money for you? Families moving into Pittsburgh have been a significant force behind our home sales for decades. Buyers with children almost universally start their home search considering school districts. Our school district not only offers top numbers, but it is small and can afford more personal interactions between families and faculty. This personal touch makes Quaker Valley both unique and a highly sought-after school district for people moving to Pittsburgh.
Relocation buyers are not our only customers. We see dozens of home sales each year to families living in other Pittsburgh communities where the school districts are not as acclaimed looking to improve the educational opportunities for their children. Pittsburgh neighborhoods that seemed fun and exciting to DINKS give way to sensible communities with outstanding schools like Quaker Valley once kids come along.
And yet we are a small community, with limited housing options. As our educational performance continues to shine, living in Quaker Valley continues to be a strong draw for buyers coming from both near and far, and yet we only have so many places to house these buyers. The increased demand for housing in the District has continued to push our housing prices up, and that has become particularly evident in some of our more affordable price brackets, which are feeling less affordable each year.
So yes, absolutely – living in such a highly acclaimed school district is a very important component of housing value and driving more and more families to explore the possibility of living here. Despite our new construction, the very limited nature of our housing inventory, when combined with the strong demand resulting from the excellent reputation our school district has maintained, is continuing to put strong upward pressure on our housing values.
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by Kathe Barge | Oct 9, 2020 | Blog, Home Staging, Listings, Market Trends, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley
Now that fall is here, do you have any tips for presenting our home well in the fall market?
Fall can be such a wonderful season here in Pittsburgh, but sometimes sellers forget that they need to take a fresh look at their home to make sure it is still presenting at its best as summer ends. Start with your yard. It’s the first thing a buyer sees! Make sure you have trimmed away all of Summer’s dead blooms and that your garden beds are looking ready for their long winter’s nap. Put down fall fertilizer so your yard looks great again this coming spring! Be sure to give your lawn its final mow, and as we move into fall, keep your leaves raked!
Don’t forget to keep your gutters clean – if your home is actively on the market, you may need to do it more than once – you don’t want a buyer to see clogged gutters and mini-trees emerging! Give porches and patios a final thorough cleaning. If your windows aren’t really clean, get that done too – as we go into our grayer time of the year, its really important to get as much sunshine inside as possible!
Inside, check all of your lightbulbs and make sure they are all at the maximum possible wattage and in good working order. As days grow shorter, it will be important for your home to be bright and cheerful inside. Clean out your garage. You will need it once snow flies, and you won’t want to be out there in 30 degree weather! Be sure that if you choose seasonal decorations like mums or wreaths, that you remember to rotate them as we move through the season so that you reflect the current season!
And of course, if you know now that you want to list in the coming Spring season, which kicks off in January, give me a call now so we can get photography done while there are still leaves on the trees!
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by Kathe Barge | Sep 29, 2020 | Blog, Buyers, Contracts, Listings, Market Trends, Mortgage, Real Estate, Sellers-Contracts
With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offer?
Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value. If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home. Your bank will need your new home to appraise so that your debt percentage is not greater than 80%. If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.
If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price. While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.
There is a definite risk that in a hot market you could overpay for a home. Homes are in some circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home. Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.
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by Kathe Barge | Sep 23, 2020 | Blog, Buyers, Contracts, Listings, Marketing, Sellers
We have been waiting for a while for some new homes to come on the market –are you anticipating more listings soon?
It has in fact been a very active summer season and it sure does feel like inventory is very low. In fact, we currently have ONLY 82 listings available for sale in the Quaker Valley School District – in most years that number would be approximately 200! So when we say that we need listings, we mean it!
Yes, we do expect that there will be more homes coming on the market in the new year. While March & April tend to be our largest listing months every year, we have had a few introductions recently and as a general rule they have flown off the market. We have a tremendous amount of pent up demand. There are dozens of buyers in every price range sitting on the fence waiting for their “perfect” listing. If you are one of those buyers, you should expect that you will have some stiff competition as we are seeing bidding wars with multiple offers in many price ranges. So make sure you have your financing in order and be prepared to move quickly if you see something that looks like it could work.
If you are one of the many Village dreamers we have out there, start thinking now about what compromises you might be willing to make to get a home. As Pittsburgh grows, our inventory is not keeping up with housing demands and we will continue to see a tighter and tighter housing market and increasing prices. Compromise will be necessary to even get into a home here.
Finally, if you are thinking of selling your home, I have said it many times before, but PLEASE reach out to me! I offer completely confidential consultations and strategic plans to maximize your returns, with a nearly 22-year proven track record. There is no better time to be selling your home!
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by Kathe Barge | Sep 14, 2020 | Blog, Buyers, Contracts, Listings, Market Trends, Pittsburgh, Property Updates, Real Estate, Sellers, Sewickley, Sewickley Herald
We are looking to buy a new home – where is the market these days? Do you have any advice for buyers?
We have had an unbelievably strong summer market – unlike anything I have seen in my nearly 22 years in business. Homes are often selling with multiple cash offers in a day or two for over the asking price. If you want to buy now, you need to go into every home with the assumption that you will pay asking price at a minimum – unless you are willing to sit on the sidelines for a week or two and see if the market feels the price is too high.
Why is this happening? We have had an extreme shortage of inventory for years now and its only getting worse – we simply don’t have enough homes available for sale. Interest rates have never been lower and people who have rented are taking the opportunity to jump into the market and lock in a 30 year mortgage at an unheard of rate.
Does this mean you will overpay? Quite possibly, if you need to sell in the next 1-3 years, you might be challenged to return 100% of your investment. But none of us has a crystal ball, so you never know.
Is it better to wait out this surge? Probably not. There is no end in sight, nothing that suggests that we will see a sudden influx of inventory. If you want a new home, you are just going to have to jump into the market.
So how do you win? First, you must be fully preapproved by a reputable local lender. Once you are fully preapproved, it is possible to waive your mortgage contingency so that you can compete with cash deals. You also have to have confidence in the price you are paying so that you can waive the appraisal contingency. You need to anticipate that you will pay at least asking price and may have to bid over the asking price of the home in order to get the home. Finally, you will want to consider whether you are willing to waive your inspections. The vast majority of buyers who are winning in bidding wars right now are waiving all inspections. The best place to start is with an experienced buyers agents such as myself who can give you the very best, up to the minute advice on how to approach each house in its individual neighborhood.
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by Kathe Barge | Jun 23, 2020 | Blog, Buyers, Mortgage
With all that is going on in the world, why should we consider a move now?
I know it might seem counter-intuitive, but local market indicators suggest there has never been a better time to be in the market for a move. Why buy now? Here are my top reasons!
- Interest rates are unbelievably low! Fixed 30 year loans under 3%? Yes! You can buy more and spend less!
- We have some very nice homes available to purchase – its been a long time since I have seen so many nice choices.
- Some buyers are concerned about economic uncertainty right now and sitting on the fence. However, the economic factors associated with the housing crash in 2008 are not present now, so while the economy may slow down, we are not anticipating housing prices to drop. Take advantage of other buyers’ hesitation and buy now before you find yourself in a multi-party bidding war.
- Housing prices have continued to rise in our local markets despite the pandemic and economic uncertainty. If you are sitting on the sidelines, there is a good chance you will pay more at a later date!
I have outstanding opportunities across all price brackets. Why buy now? Check out more reasons below!
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by Kathe Barge | Mar 16, 2020 | Blog, Buyers, Market Trends, Pittsburgh, Sellers
What impact do you think the recent economic downturn will have on our local real estate market?
This is the million-dollar question right now. There seems to be no doubt that real estate consumers are a little less confident this week. But will we see an actual downturn in our market?
My hope is that this will simply result in a temporary delay in our spring season. Before the most recent events, we had an incredible amount of excess demand and low inventory, resulting in frequent bidding wars and many disappointed families who lost out on yet another home. I have personally experienced that on several of my listings – several offers but only one home to sell. Those buyers are still out there – maybe focused on other things, but still out there. If you are a buyer, I would encourage you to press forward in your search for a home. The reality is that much of your competition may be focusing on other aspects of their lives right now and you may have a better chance of actually succeeding in buying a home without having to compete with multiple bidders. Interest rates are low – it remains a great time to buy!
I do not expect values to plummet, so if you are planning on sitting on the sidelines waiting to see how low they go, you are probably going to lose out on some great homes. When we saw our economy falter in 2008, we did not see a drop in housing prices. We also did not see continued appreciation, but we were very stable. Pittsburgh has historically been a very stable real estate market—we don’t have a spike in values – just a steady climb – so we are unlikely to see a significant drop.
Sellers, I encourage you to continue to ready your homes for sale. Our spring market surge may happen slightly later this year – and that will be good news for those of you who are still organizing your closets, attics, basements and garages. You only have one chance to make a great first impression – now is your chance to make sure you are doing just that!
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by Kathe Barge | Mar 3, 2020 | Blog, Real Estate, Sellers
What advice do you have for pet owners hoping to sell their homes?
I am a pet lover. In fact, there are two canine members of my family. 60% of Americans own a pet, and 40% are dog owners. As a pet owner and lover I am aware that not everyone loves pets. If I am a home seller, this is particularly important to keep in mind. It is critical when selling your home to remove any and all evidence of your pets!
What exactly does this entail? Smell should be your first concern. If you live with a pet you are probably used to the smell and don’t notice it, but your buyer will. Carpets should be professionally cleaned and deodorized to remove any possible smell. If any smell lingers after that, you probably need to change the furnace filter and quite possibly have the ducts cleaned. If you are still living in the home it is critical to keep all your pet things clean – launder blankets regularly, keep crates wiped down, empty litter boxes every day and give your dog a weekly bath. I can’t stress this enough. Any smell at all could kill your chances at an offer.
Cleanliness should be your next concern. If your home is vacant, after you move out make sure there is no evidence of a pet having lived there. Make sure there are no hair balls hiding in corners or behind doors. Clean or replace air return grills as they have likely become laden with pet hair and dander, resulting in a dirty look. Clean the vent cover on the bottom of refrigerators as well – they are often clogged with pet hair. If you are still living in the home, you must address all of the above on a regular basis as well as making sure that physical evidence of a pet disappears during a showing. Pack up toys and beds and tuck them in a discrete location.
Finally, if at all possible, remove the pets themselves for all showings for the best chance of selling the home. While your pets are likely cute as can be, many people are either fearful or allergic – why take any chances?
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by Kathe Barge | Feb 19, 2020 | Blog, Sellers
My mother recently passed leaving me and my brother a well-maintained but not updated house built in 1960. It’s full of furniture that is clean but bulky and out of style and almond-colored appliances that work fine but are 20-30 years old and don’t match. We plan to sell the house. My brother thinks the house will sell better if it has some furniture and appliances in it; I think it would sell better with empty rooms (it has beautiful hardwood and tile floors that have been covered with carpet since the day they were built) and the distracting appliances removed. What would you advise?
First, you absolutely must empty the home – these days young buyers want Pottery Barn, not grandma and grandpa’s house. Buyers also do not respond well when personal effects of a decedent remain behind after they are gone – so it’s important that it be completely empty before anyone tours the home.
Second, any old carpet should be removed. If there are hardwood floors underneath, that is what buyers want these days and you will do far better in your realized price if the floors are fully exposed. If they are not in good shape, it is possible to buy a Bruce product at the hardware store that does an acceptable job making them look presentable and is easily mopped on.
You must have a stove in the house in order for the buyer to get a mortgage. Therefore, you either need to keep the old one or buy a new one. Refrigerators, however, do not need to be retained and you may be able to get a credit for turning an inefficient old refrigerator in.
I would also recommend that you and your brother have the home pre-inspected and appraised in order to make the selling process as smooth as possible!
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by Kathe Barge | Feb 10, 2020 | Blog, Buyers, Real Estate, Sellers
We are planning to buy a second home in another location. How can we find a great agent to work with there?
You might be surprised to learn that I can help you with this! No, I am not licensed in other states, but I can help you find a great agent wherever you are thinking of buying (or selling) a home. And yes, I do have access to resources not easily available to the general public to do that for you and have done it for many others!
It is a daunting task when you are looking at a real estate market from afar to figure out which agent will best serve your needs, and yet you know from your experience here how important that is! Here’s how I can help! First, I would want to chat with you about what you are looking for in your new location. Understanding your goals with respect to that home will help me refine the agent selection process. Then I will get to work finding you the best match for a buyer’s (or seller’s) agent. I can do this by utilizing networking communities I have developed through the certifications that I have earned over the years, including my ABR (Accredited Buyers Representatives), CRS (Certified Residential Specialists), CNE (Certified Negotiation Experts) and SRES (Senior Real Estate Specialists), all nationwide groups to which other highly-qualified agents belong throughout our country.
Once I identify a few candidates for you, I will do the screening work for you, reviewing their experience both online and with an over-the-phone interview. In a short interview I will be able to get a quick sense of whether the agent will be a good fit for you! Because I do this every day, I am able to quickly cut through all of the online noise, such as the paid Zillow ads where you will see not necessarily the most qualified agents but instead the ones most willing to pay to get themselves in front of you, and find you the best agent for your specific needs. Additionally, most websites hide the identity of the listing agent in order to be able to sell your lead to agents willing to pay for them, so simply going online and contacting who appears to be the listing agent on homes that you like will likely be unhelpful.
So why hassle with trying to sort through all of the online information on your own when I can easily sort this all out for you! If you need a Realtor in another location, reach out to me – I’m happy to help you!
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by Kathe Barge | Jan 28, 2020 | Blog, Home Staging, Sellers
The job of getting our home ready for market seems so overwhelming. How does anyone get it all done?
You are correct – there is quite a bit to do to get your home ready for market. We have HGTV to thank for high buyer expectations. Gone are the days when you could just turn over the keys and have your home sell. Today’s buyers handsomely reward sellers who present perfectly conditioned and staged homes. But there is a long list of to dos to accomplish to successfully present a home for resale. Closets, garages, basements, attics and the rooms we live in must all be decluttered. Often off-site storage facilities need to be procured or charities contacted to haul away the items we no longer need. Most have a list of minor repairs that need to be attended to. Sometimes more significant improvements should be undertaken. Many need to ameliorate the wear and tear our children and pets bring to our homes. The lists can seem endless. And of course there is the staging – its often a good idea to bring in fresh towels and bedding to make your home look particularly fresh, for example – those all need to be shopped for! If you have read my columns you are likely aware that I offer no-charge consultations to help you develop your to do list. But then what?
I recommend bullet journaling as your attack method for your to do list. If you aren’t familiar with bullet journaling, check out the how to videos on you tube. You can use any journal or notebook and it has far greater usefulness than just your to do list for getting your home sold. I recently listed a home and was so impressed with my seller. I wondered how they had managed multiple remodeling projects and handled all of their to do lists with ease and efficiency – and then I spotted the bullet journal. The seller had actually paired the bullet journaling with the Trello app, something I have yet to try, and by which both partners could access the to do lists and progress. In their bullet journal and in coordination with Trello they had broken each part of their process down into micro tasks that they could effectively check off their lists. The journal allowed them to keep track of all of their conversations, progress and updated to-dos, all in one easy-to-access location. Gone are all of the sticky notes and important numbers scribed on scraps of paper. As things arose, they were added to the journal and through bullet journaling and its systems of pagination and moving items forward, easily tracked.
So if you are considering a home sale or other large project, consider bullet journaling. Its easy to use and very effective in helping you tackle the most challenging projects on your list!
544 Academy, Sewickley
New Listing!! Prime Village location with 4 finished levels of living space! Four bedrooms including a brand new 3rd floor bath, plus a great room, on the upper levels. Remodeled kitchen. New convenient many level laundry. Finished lower level media room with bar. Incredible new outdoor “living room” with pizza oven. Incredible large fenced flat yard. Two car attached garage. $1,250,000. Please join me for my open house Sunday 2/2, 2-4pm.
314 Myrtle Lane, Edgeworth
New Listing!! Incredible remodel of this surprisingly spacious Village home with 2.5 new baths and recently remodeled kitchen plus newer roof, flashings, skylights. Main level features living room, dining room, family room open to kitchen and mudroom/main level laundry plus convenient two-car attached garage. Upstairs are three bedrooms, two baths and a home office. Beautifully landscaped yard with patio. $650,000. Please join me for our open house Sunday 2/2, 11am-1pm.
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by Kathe Barge | Jan 20, 2020 | Blog, Buyers, Inspections, Mortgage
We’re first time home buyers. Where do we begin? (continued from last week)
For those of who just picking up the conversation today, check out my blog at www.askkathe.com to read the past two weeks’ introduction to the home buying process. If you are following along, so far you have gotten pre-approved for your mortgage, researched and chosen a buyer’s agent to be your advocate, saved money for your down payment, shopped for a home and gotten one under agreement. Now the fun continues!
Once you have a home under agreement and have deposited your hand money, you will be ready to schedule your inspections. Your buyer’s agent should provide you with guidance in finding reputable home inspectors. You will want to consider scheduling a general home inspection as well as inspections for radon, wood boring insects (termites), mold, and possibly of the sewer lines. If the home has a septic system you will absolutely want to fully inspect the system – they are quite costly to replace. If there is a well on the property, you will want to test both the water quality and the capacity of the well. You may also need to have specialists evaluate aging components such as the roof. You generally have 10 – 14 days to complete your inspections and at the end of that period, you will need to make a request of the seller if you would like any items addressed. To reach a successful conclusion of inspection negotiation, it’s a good idea to keep some simple tips in mind. First, anything on the disclosure should have been considered when you were making the offer – its not a great idea to revisit disclosed items. For example, if the seller disclosed that the roof is at the end of its useful life, asking for money toward a new roof is unlikely to be well received. The same can be said for items you could have easily seen. If the inspector notes that the driveway is cracked and you should have seen it while visiting the home, asking for the seller to pay for a new driveway will also not be well received. So when deciding what, if anything, to request of the seller, eliminate disclosed items and things you noticed when visiting the home and then turn your focus to the items that concern you most. Of course, if there were multiple offers and you were the winner in a bidding war, you may not be able to ask for much if anything as there is likely another buyer on standby! Ultimately, you and your seller will need to reach a compromise on the inspection issues and that agreement will be formalized in a written addendum to your Agreement of Sale.
At the same time you are working through inspections, you will also need to make application for your financing. This must be complete (in other words, you must have all of your paperwork to your lender) within 7 days of the final Agreement of Sale. Applying for a mortgage these days can seem quite challenging – be prepared for the lender to ask for what will seem like a mountain of documents. And do NOT make any major purchase until after you close on your home – changes to your outstanding debt at this point could affect your ability to qualify for a loan at all! Once you get through inspections and mortgage application, it should be smooth sailing. We will cover the final step in the process next week!
307 Grant Street, Sewickley – NEW LISTING!
Incredible central Village home in a phenomenal neighborhood with flat, fenced yard, 2 car garage. Newly remolded kitchen and baths. Upstairs features 3 bedrooms, 2 baths. The main level includes living, dining and family rooms, eat-in kitchen and den. Charming covered back porch. $725,000. Join me for our open house Sunday, 1-3pm.
213 Chestnut Road
Beautifully remodeled Sewickley Village Victorian with high ceilings, open floorplan and fabulous original architectural detailing. Wonderful newer master suite with stylish newer bath. Four finished levels of living space including lower level gameroom. Flat backyard, two car detached garage. In a wonderful Village neighborhood, within a very easy walking distance to Village shops and restaurants. $795,000
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by Kathe Barge | Jan 7, 2020 | Blog, Buyers
We’re first time home buyers – where do we begin?
Buying a home is one of the best choices you can make. Rather than paying money to your landlord so that he can be closer to owning an asset outright each month, when you make your monthly payment each month a portion actually goes to your benefit – when you sell the home someday, as long as the market is in a good place, that money is refunded to you (called equity) and you can use it to buy again. It is, in effect, a forced savings plan and over time you can amass quite a large amount of savings while you are simply doing what you would have done otherwise – paying for housing each month.
To buy a home, however, you must have two things to start: a down payment and good credit. There a host of specialty loan products for first time home buyers far too extensive to review here, but figure on saving no less than 2.5% of the purchase price for a down payment if you are able to use an FHA product or 10% if you are going to use a typical mortgage. Credit scores are also key. Again, there are many things you can do to help or hurt your credit as you prepare to buy your home. Do not open any new credit – don’t buy any new cars. Pay all bills on time.
When you think you are ready, start by finding a full-time buyers agent. We now have Buyer’s Agency in this state and you need someone looking out for you from the outset. Check the agent’s website, review references, interview if you wish. Make sure you understand what the agent will do for you and be sure you have done your homework and are selecting the best agent for your needs. Once you select an agent, you will need to sign two documents: a Consumer Notice, informing you of your rights, and a Buyer Agency Agreement, whereby you actually hire the agent to work for you. While the seller still pays the commission, an Agreement is still required to create the legal relationship whereby the agent is working for you and not the seller.
Your agent should then refer you to a mortgage broker for a pre-approval. The broker will review your assets, liabilities and credit and give you a written statement of how much you can afford to buy. This step cannot be skipped. There is no sense looking at homes you can’t afford.
With pre-approval in hand and agent on board, you are now ready to begin the home buying process…stay tuned next week and I will continue to walk you through the process…its when the fun begins!
141 Beech Ridge Drive
Beautifully remodeled newer high-end custom construction home nestled on 8 private acres in Sewickley. Newly painted interior. New carpeting. New lighting. Newer designer kitchen. Updated/new baths. Half-court indoor basketball court, full racquetball/squash court, complete locker room facilities including sauna, 60’x30’ heated in-ground concrete salt water pool w/ stone waterfalls, patio w/ outdoor fireplace, 6 bedrooms, 5 full & 4 half baths, 9 fireplaces, 6 garage spaces, two kitchens, wine room, roof-top observation deck, new home theater. Simply remarkable! $3,500,000
321 Merriman Road, Sewickley Heights
An exceptional opportunity to live on 42 gently rolling acres in very desirable Sewickley Heights. Beautifully remodeled, this classic historic colonial perfectly blends sophisticated living, modern amenities, and stunning architectural details throughout! Featuring 6 bedrooms, 7 full and 2 half baths, this home boasts a grand entry hall, large open kitchen and inviting two-story family room, well-cabineted butler’s pantry, two mudrooms, handsome private den, spacious formal rooms, main-level gameroom with three walls of windows, large bedrooms and fabulous master suite with dressing room. Glass doors open to charming patios which spill out onto the sprawling lawns! Wonderful pool, outdoor kitchen and living space with impressive outdoor fireplace offer ideal venues for warm-weather entertaining and fun! Four car garage. $4,250,000
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by Kathe Barge | Jan 2, 2020 | Blog, Buyers, Home Staging, Inspections, Sellers
Sometimes it seems like everything is breaking around our house and we get behind on repairs. Isnt there some level of wear and tear buyers of “previously enjoyed” homes are expecting to have to accept?
The process of selling and buying a home involves many fine lines. How far do you take preparing your home for sale? Do you really need to address all of the items suggested by your agent, the home stager or the home inspector who did a pre-inspection? Do you really have to attend to everything your family has broken or worn out over the years?
Anything that could come up on an inspection, if you know about it, really must be repaired or disclosed. My vote is repair. Even with items that are very obvious, when an inspector gets involved, he may blow the issue out of proportion and something that might have cost you $1000 to repair before you listed ends up costing you $3000 on the inspection request. If its something an inspector might find, you can bet he will find it and you will be expected to cover the cost of repair anyhow, so you might as well repair upfront.
Many buyers actually get quite nervous during the home inspection (also known as buyers remorse). If you happened to have gotten one of these buyers, it is possible that they could walk away from your deal if the inspection concerns feel too weighty to them. After you actually receive and negotiate the offer, the last thing you want to do is lose the buyer over items that you could have fixed but didn’t think anyone would notice or care about! In today’s market, they notice, they care. Sometimes they are willing to let you pay for the repair. Sometimes they just walk. Don’t take any chances. If you suspect it is likely someone would seek a repair, get it done!
Buyers, as much as I advocate for sellers to take care of the wear and tear items on their homes, it is important for you to be reasonable on your inspection requests as well. If you see an item that needs to be fixed while you are touring the home, take that into account when you make your offer and do not revisit it on the inspection. Inspection requests are supposed to be for items you didn’t know about and didn’t have a chance to adjust for in making your offer. Again, its a fine line buyers also walk in deciding what are fair and appropriate inspection requests of a seller.
321 Merriman Road, Sewickley Heights
An exceptional opportunity to live on 42 gently rolling acres in very desirable Sewickley Heights. Beautifully remodeled, this classic historic colonial perfectly blends sophisticated living, modern amenities, and stunning architectural details throughout! Featuring 6 bedrooms, 7 full and 2 half baths, this home boasts a grand entry hall, large open kitchen and inviting two-story family room, well-cabineted butler’s pantry, two mudrooms, handsome private den, spacious formal rooms, main-level gameroom with three walls of windows, large bedrooms and fabulous master suite with dressing room. Glass doors open to charming patios which spill out onto the sprawling lawns! Wonderful pool, outdoor kitchen and living space with impressive outdoor fireplace offer ideal venues for warm-weather entertaining and fun! Four car garage. $4,250,000
49 Woodland Road
Boasting newer kitchen and baths in a sought after Village neighborhood, 49 Woodland offers a unique opportunity for newer construction in the heart of Sewickley Village. The main level master offers hard-to-find convenience – with 3-5 additional bedrooms upstairs. The beautifully remodeled white kitchen opens to family room and sunroom, with 3 walls of windows overlooking the private backyard. The three car attached garage offers another hard-to-come buy amenity in the Village, as does the finished lower level! $1,625,000.
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by Kathe Barge | Dec 26, 2019 | Blog, Market Trends, Sellers
We are planning to sell our house this spring. We have invested a lot in our home and know what we want to sell our home for. How can we make that happen?
The answer here is really quite simple. You are not the first home seller to have a clear idea of what you think your home should be worth and what you are willing to sell it for. And the easy to remember answer to your question is: if you want what you want, you must give the market what it wants!
So what exactly does this mean? If you are fixated on a particular price, then unless you happen to be one of the 5% of sellers who are not trying to push the market on value, you must do your work upfront to present your home as what the market is looking for. This is not the time to ready the home as you would prefer it – you are moving and must detach from your own personal style and preferences.
So what does the market want exactly? Well, that will vary depending on your price point. When you are ready to speak to a Realtor, I am more than happy to help you fine tune the specifics for your home. My past articles, which are archived on my blog, AskKathe.com, have a lot of this information easily accessible to you! Here are a few pointers I have shared in the past! The market does not want wallpaper! No matter what the designers say, it needs to come down, unless you just put it up (and please be minimal in your choice of wallpaper if you are redecorating). The market does not want colored carpets, or worn carpets, or bold jewel tones painted on the walls, or swag curtains, or deferred maintenance, or wear and tear on walls and cabinetry, or cluttered rooms. If you take the time to meet the market preferences, you have a much higher likelihood of getting what you want. But if you don’t want to address market preferences and just want to enter the market “as is” then unless what you want happens to be well below market value, you will need to adjust what you want!
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by Kathe Barge | Dec 13, 2019 | Blog, Sellers
We’re getting ready to put our home on the market this spring and have read all of your prior articles on staging – any new do-it-yourself ideas to maximize sale-ability?
Now is the perfect time to be readying for Spring – our Spring market starts in January so you have some time to make final preparations. I cannot say often enough how important it is to stage your home – those that are staged sell quickly and for top dollar. For those of you who have completed the primer course in home staging and have de-wallpapered, de-cluttered… here are a few more great ideas!
Expose your windows. Pittsburgh can be gray enough. Take down window treatments (yes, even custom ones unless they are less than 5 years old) and always show your home with the blinds up. It’s important that your home feel light and bright to prospective buyers and not dark and cave-like.
Expose your wood floors. Buyers love hardwood floors. If you have old wall-to-wall carpeting over hardwood floors, remove it and expose the wood. If you have area rugs, unless they are the latest trend and are measurably adding to your design, roll them up and store them.
Do a “super quickie” on your kitchen and baths. Even replacing old lighting fixtures and cabinet hardware will go a long way to making a space feel more updated. The big box stores have a large selection of reasonably priced choices. The safest choice these days is silver tones, but champagne/ brushed gold is also well-liked.
Buy new white towels and other white accessories for your baths (and don’t use them so they stay fluffy). White brings a sense of cleanliness to a bathroom.
Finally, when you have a showing scheduled, leave all of your lights on in anticipation of the showing. Light, bright & squeaky clean is a great formula for getting your home sold!
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by Kathe Barge | Dec 9, 2019 | Blog, Sellers, Sellers-Contracts
We were approached by someone who is interested in buying our home. The buyer has provided us with an unsigned sales agreement as their offer. They are offering 1.5% of the purchase price as their hand money and we assume they have the money – its a cash offer. Are we wasting our time with these buyers?
The very short answer is yes! For starters, to be a valid offer, it must be in writing and signed. Without a signed contract, you have absolutely nothing to bind the buyer should you decide to proceed. What you received is not an offer at all and you should not give it serious consideration until the paperwork is signed by the buyer.
Hand money equal to 1.5% of the offer may or may not be sufficient depending on the individual circumstances. Sometimes that is all a buyer can afford. However, this buyer is supposedly paying cash so there should be no problem with them providing a more substantial deposit. Look for a minimum of 5% in this type of scenario. The hand money is your consolation prize should the buyer decide not to close after all contingencies have been satisfied – if you have moved out, you will need at least that much to compensate you for all of your moving costs.
As far as assuming they have the money to buy it, I would recommend that you not engage in any substantive negotiations until the buyer has proven that they do have the cash available to close. Talk is cheap, but if they really do have the cash, they will have no problem producing copies of statements showing the cash or a letter from their banker that they have the needed funds.
Your question addresses just a few of the hundreds of complexities involved in getting a home sold and highlight why it’s really important to engage a full-time real estate expert when buying or selling a home. Most buyers expect the seller to discount a home 6% when there is no Realtor involved, so there is rarely a benefit to a seller from being unrepresented.
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by Kathe Barge | Dec 2, 2019 | Blog, Buyers, Real Estate
We’re hoping to move in the New Year and are beginning our search online – is there anything we should keep in mind?
The majority of buyers will shop online during their search for a new home, and many will actually begin their search there, like yourselves! The real estate industry has come such a long way in the 20+ years since I started in this business. Back in what feels like a different century (perhaps because it was), we used bulky multilist books that were delivered every other week to find homes for our clients. If you were in good with your agent, she might lend you a coveted book to take home and peruse! Now you can access the entire nation’s real estate inventory on national websites such as realtor.com in the comfort of your own home!
The internet has made it incredibly easy for buyers to do some preliminary research for a new home. It does have its limitations, however, which is where your expert real estate agent can fill in the gaps.
Online listings, if managed by a good agent, will always look amazing. Wide-angle lenses and professional photographers are employed, as well as photo-editing software, to make a home look as attractive as possible online. It’s worth keeping in mind that pictures may lie – be careful not to screen out potential homes just because the photos aren’t fabulous – rely instead on the wisdom of your agent. If she has listened to your feedback and is familiar with the inventory, she will be your best screen for which homes are better than they appear, and which may be worse.
Online listings also don’t give you much of a sense of location. While google earth may help with some of this, until you actually drive by a property, you may not be able to tell physical lot characteristics that may be a positive or a negative to you. Online listings also can do little to convey a sense of neighborhood or community. Again, that is where your real estate professional should be able to fill in the picture for you.
Finally, online listings are only as good as the agent who enters the data – there may be information about the property that is not entered into the MLS, either by agent oversight or by simple lack of space, that might make a home more desirable to you. Information such as camera security systems, water softener and purification systems, high-efficiency mechanicals and smart home systems may have real value to you and is rarely listed online. Online shopping is a great way to familiarize yourself with the market, but a local real estate expert is your best course of action once your curiosity grows more serious.
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by Kathe Barge | Nov 25, 2019 | Blog, Buyers, Home Staging, Sellers
Our home is on the market – is it ok to show it decorated for the holidays or should we take it off the market?
Buyers who are shopping during the holidays are some of the most serious buyers we see each year – most people don’t bother spending their precious holiday time looking at homes unless they have a need to buy. So keeping your home on the market over the holidays is generally a good idea!
Decorating for the holidays while your home is on the market is also not a bad idea – homes often look their best decorated for the holidays – as long as a few basic guidelines are followed. Briefly stated, when decorating this holiday season, keep your decorations more neutral and reasonably simple.
Start by taking a more minimalist approach. You may have bins and bins of holiday decorations like I do, but when your home is on the market, its best to leave some of those decorations packed away. Choose decorations that have less of a religious theme. Snowmen, evergreen wreaths, poinsettias and nutcrackers, for example, have broad appeal. Be careful that the decorations that you do choose compliment your décor. You may have changed the color scheme in your home since buying your holiday decorations and it’s important that they don’t clash! Don’t over-decorate the exterior of your home either. A few well placed, tasteful strands of lights or an attractive evergreen wreath can add sense of warmth to your home, but keep your inflatables packed up!
If you bring in a tree, make sure it doesn’t overwhelm the room. This year a tall, skinny tree might be the best choice so that the room doesn’t feel small. And of course, consider using decorations to highlight some of your home’s special architectural features, such as using candles to draw attention to an attractive fireplace.
When showings are scheduled, a brewing pot of mulled cider or a plate of freshly baked cookies is not only seasonably appropriate but will go along way toward creating an inviting feel for your buyers. And don’t forget – even if you normally keep your thermostat down, be sure to turn it up for showings so that buyers are comfortably warm!
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by Kathe Barge | Nov 18, 2019 | Blog, Buyers, Market Trends, Mortgage
We would like to move to Sewickley. Are there any affordable homes anymore?
Of course there are! But Sewickley, particularly in affordable price ranges, has become a very competitive market. It seems the secret is out – many people know about our very unique combination of a highly rated school district and a charming, walkable shopping district. Every agent I know has a list of buyers waiting for affordable homes to become available!
What does this mean for you as a home buyer? First, its critical to make sure you are fully pre-approved for a mortgage. If you are fully pre-approved (having submitted all of the supporting documents to your lender), you may be confident in your ability to get a mortgage and feel comfortable waiving your mortgage contingency, which will make you a much more competitive buyer if there are multiple offers.
Second, keep your offer as “clean” as possible. Try not to add in special requests or inclusions that sellers don’t usually leave with a home (such as furniture). Keep your inspection period as short as possible, or consider waiving inspections altogether if it is a newer home.
Third, keep your offer prices up. If you love a home, that is no time to lowball a seller. Even if a home has been on the market for a while, we often receive multiple offers at the same time. You don’t save anything when you make a low offer and you don’t get the home.
Finally, be open to compromise. If a home meets 7 out of 10 of your wish list items, consider it a home run. In a tight market like we are in, if you hold out waiting for your perfect 10, you will likely find yourself sitting on the sidelines. To get a Sewickley home, you may have to give up a garage, or a two car garage. You may need to take on a few projects. You may need to accept that there is no master bathroom or no main level family room. You may need to accept that the basement ceilings are lower and so any “game room” is a little more basic. You may have to accept a less open floorplan or a longer distance to the center of town. But remember, once you close you will make it your home, flaws and all, and will absolutely love being a part of this vibrant community!
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by Kathe Barge | Nov 11, 2019 | Blog, Buyers, Mortgage, Sellers
We are planning to buy a new home soon – we see advertisements for internet lenders offering what seem to be below market rates. Is this too good to be true?
If you are simply refinancing an existing mortgage debt, you MAY be ok choosing an internet lender. You just need to be very careful that, before you apply to refinance your loan, you receive from the lender a full disclosure of all the costs and not just the rates. Oftentimes I see lenders have exorbitantly high fees connected with low rates. In a sense, you are buying down your rate by paying high fees upfront. Be sure to compare them on the same day to a couple of local lenders and understand what you are paying to get the quoted rates. The reason you must compare rates on a singular date is because rates go up and down continuously and a rate may seem lower simply because you called a particular lender on a date rates dropped.
If you are buying a home rather than refinancing, I do NOT recommend that you use an internet lender. They do not tend to be familiar with area norms and that can cause you more headaches than you can imagine. There is a long list of particularities to PA Agreements of Sale and the last think you want to do is have your closing delayed (while your movers are standing at the curb) while you wait for your lender (who does not have a local presence that you can visit personally to address any issues) to sort things out. As they are not familiar with our Agreements and processes, internet lenders may also impose requirements on you to “fund your loan” that are not requirements generally imposed by local lenders that may disadvantage you later. Finally, internet lenders often do not understand that PA Agreements of Sale declare “time is of the essence” inside the contract – what that means to you is that if you miss your closing date because the lender isn’t ready to close, the seller does have the legal right to declare you in default, keep your hand money and sell the home to someone else.
When buying, why take a risk? Rely on your trusted Realtor to help you find a local lender who offers the most competitively priced loan products and delivers exceptional customer service. Realtors cannot accept referral fees from lenders, so you can be sure we are motivated only by knowing you will have an outstanding transaction. Feel free to reach out to me for help finding you the best local lender to meet your financing needs!
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by Kathe Barge | Nov 5, 2019 | Blog, Home Staging, Real Estate
We’d like to jazz up our house a bit in time for the holidays but would also like to make choices that would help resale when we are ready to sell! Your thoughts?
The fastest, easiest way to give your home a fresh, new look is through paint! I like to think of paint colors inside a home as a creamsicle – make sure whatever you choose blends well with what you have, unless you are planning on repainting everything. And make sure your choices blend well with your existing trim and floor colors. For example, you do not want to choose cool gray tones for your walls if your trim paint is a creamier shade of white – keep your wall color more in the greige family if that is the case! Yes, gray and greige are still popular. If you prefer warmer colors it is possible to choose shades of gray that have warmer undertones. Tired of gray? It is also possible to choose colors in the blue and green families that have undertones of gray, so they still feel current! Despite what you read, do avoid wallpaper. While I understand it is making a “comeback,” it is very personal and if there is any chance you are moving sooner rather than later, painting an accent wall would be a better choice than wallpaper. If you just have to have wallpaper, choose a small space that is easy to remove if need be, such as a powder room.
The next easiest and affordable way to create a new look is through your lighting. Check out high end lines such as Visual Comfort or Currey and Company for some of the latest trends and then search for similar styles from more affordable brands on websites such as Wayfair and Lighting Direct. There are so many trendy, affordable fixtures available these days – let your imagination run wild. Do keep in mind that you should try to keep metals consistent throughout your home – so if you have been carrying silver tones through your home, keep new fixtures in silver tones. If your home is predominantly brass, consider the newer brushed brass look which is quite popular. If you want to save money month after month, be sure to choose LED bulbs to light your fixtures with and dispose of your old incandescent bulbs.
Depending on your budget, flooring can also make a big impact, which could include refinishing or just buffing and recoating hardwoods, and replacing tired or colored carpeting. Countertops can be pricey, but they are a relatively easy way to make a fresh statement in your kitchen. Granite, quartz and marble and all equally popular, although the lighter shades are definitely where trends are at these days. Finally, evaluate your window treatments. Draperies are reasonably out of vogue unless you are talking about new designer panels. Consider removing drapes you have had up for 10 or more years and letting the beauty of your windows shine through. This is a super-affordable way to give your home a lighter, brighter look. Simple blinds are likely the best choice if you need privacy.
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by Kathe Barge | Oct 28, 2019 | Blog, Sellers, Sellers-Contracts
We had some prior water leakage in our basement but its been dry for years – do we need to disclose that in our disclosure?
We live in a community of older homes and there are likely skeletons hanging in most of our closets (if not on our front porch this time of year), and yes, it is important to fully disclose the history of your home. In some cases, prior water leaks may lead to mold development that you may or may not be able to see and it is important for buyers to be able to evaluate this possibility. But in any event, the problem could recur and if you fail to disclose and the problem recurs, you could find yourself in the middle of a lawsuit for fraud.
Required disclosures are of course not limited to water issues. The disclosure is going to want to know about the history of your roof and gutters, the history of any wood-boring insects that have affected your property, the history of any structural issues or issues with your driveway…, the history of any fire or ice damage, the history of your remodeling, the history of any property flooding, the history of any hazardous substance testing (mold, radon, lead), and of course the current status of all elements of the property.
The disclosure is your friend. Properly worded, even the most scary problems can be disclosed and managed. And if you are aware of the issue (past or present), properly disclose it and take it into account when pricing your home, you can sell your home knowing that the issue is not going to raise its ugly head in the future! I am more than happy to help you with that when you are ready to list your home! Not thinking about moving any time too soon? Be sure to keep a file of all of the repairs you have made over the years so when you eventually do sell you can refer back to your file and easily disclose the items you have repaired over the years. Keep in mind, the more of the skeletons in your closet that you disclose, the lower the bills from inspection related items will be and the lower the risk will be of the buyer calling you later with undisclosed historic issues!
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by Kathe Barge | Oct 24, 2019 | Blog, Property Updates
We are thinking of remodeling our kitchen. Any advice for us if we want to be making good choices for resale?
As much as we would all like to be creative, when it comes to the “hardscapes” of your home – the things that are difficult to change – if resale is even a remote possibility for you, or if you want to be sure to get a high return on your investment (most people expect 100% which is not always realistic), its important to make “mainstream” choices that the buying public as a whole loves! How do you figure that out? Pay attention to what sells quickly in our market. Watch some HGTV. Check out Pinterest! Here are some easy rules to follow!
The most popular cabinet color by far is white! Yes, I know, everyone has been saying for the past two decades that white is on its way out, and that is just not true! Can you choose natural woods? Sure. Will it generate the same excitement on resale? It will not. Yes, it will resell, but probably not as fast or for as much as white. Colored cabinets? If you pick the right (think trendy) color and are selling soon, that can work well. But if you stay in your home for 10 more years, the color you chose may no longer be in vogue and may be a challenge to resell.
The most popular flooring in a kitchen is hardwood. Can you choose tile? Yes, but it will feel dated more quickly, so choose carefully. Bamboo, cork and upscale vinyls are far less popular but can be good choices, depending on the price point.
Countertops? Either granite or quartz are the most popular choices – either will sell well, but choose the color carefully. Right now lighter color palates are in style for countertops. Avoid Formica unless the property is lower end.
Appliances? Choose stainless. Brand is less important. It is the look that is key.
Lighting? Here is where you can show some of your personal style. Buy economically but not cheap. Lights are very easy to change, so if styles change, it’s a very simple way to give your kitchen a facelift before you sell. The same is true for paint, although wallpaper should be avoided. Yes, the design industry claims wallpaper is back in style, but as far as buyers are concerned, nothing has changed. Asking someone to buy your wallpaper is as personal as asking them to wear your wedding dress. Don’t do it! If you must, confine wallpaper to a small accent here or there.
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by Kathe Barge | Oct 14, 2019 | Blog, Buyers
We would like to buy an investment property – something that we can fix up and then rent. Any tips?
Real estate rental properties can be a great way to diversify your investment portfolio and create an income stream for retirement, if you hold your properties long enough! During your ownership, if you have invested properly, the tenant’s rent should be covering your mortgage and taxes and maybe even generating some cash. Over time, the rent will have purchased you a home and the income stream becomes cash in your pocket, or the home an asset you can sell and invest in something else (Retirement home? Child’s education?)
However, before you run out and start buying investment properties, there are a few things you should consider beyond the financial aspects. First, consider where you want the property to be. Lower priced properties may not be in our best school districts, and while there are always people looking to rent, the rents will be lower. Also consider the risk of non-payment. The lower rent properties may also bring tenants with riskier jobs which could increase the possibility of having to evict tenants.
Consider your own location as well. Do you want a long drive to the property if there is an issue? Are you planning to stay local or might you be transferred, raising the question of whether you should sell the property? If you are not planning to manage the property yourself, how much will property management cost you and how will that impact your profits?
Finally, and most importantly, consider how much “fixing up” you are willing to do. Investors frequently underestimate the amount of time and money it will take to create a property that is actually desirable to renters. You need to anticipate dedicating a significant amount of your personal time if it is a project. The concept of calling a general contractor will deeply erode your profits – the best investments are the ones you are personally involved in at a high level. Also keep in mind when making your improvements, this is not going to be your personal home. Your choices should be what the mainstream market wants and should be the least expensive choices that still convey an appropriate level of quality. Investment properties should not be your opportunity to put your personal stamp on a home – save that for the home you plan to stay in! If you would like to consider an investment property further, give me a call – I can help you with that! 412.779.6060
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by Kathe Barge | Oct 7, 2019 | Blog, Listings, Sellers
Should we get a survey in connection with our new home purchase or can we rely on the seller’s old survey?
Often buyers do not order a survey of their new home and while this saves a buyer at least $400 – $500, ordering a new survey when you buy a home is a good investment. Surveys are valuable because they will show you whether there are any boundary issues with the property that might be expensive to fix later. For example, the neighbor may have built his new shed slightly over the property line. Getting that fixed might strain neighbor relations and cost you money. Better to let the current owner handle it before closing. Surveys can also reveal undisclosed easements across your property. You might find out that the neighbor has the legal right to have their driveway on a piece of your property or that the neighbor has a right to use your driveway to get to their property. While you may be ok with shared use, it is certainly something you want to make an informed decision about and not something you want to find out after the fact.
Surveys are also valuable because they show you where you can build and where you can install items such as decks, patios, pools and sheds. These can be expensive to undo if you make a mistake and end up on your neighbor’s property – better to make an upfront investment in a survey and get it right the first time. Surveys are essential if you are planning to install a fence or invisible fence. In these situations its actually an excellent idea to have the surveyor return to “stake” the property line so that you are certain you don’t put your fence on your neighbor’s land.
Finally, without a survey, at closing your title insurance company will issue a policy with “survey exceptions,” meaning that if you later find out there is an issue, the title insurance policy will not pay to resolve the issue. In order to get the best possible title insurance coverage, it is important to get a new survey.
When you are moving toward closing on your new home your settlement company will ask you whether you want a survey and I recommend that you respond yes!
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by Kathe Barge | Sep 17, 2019 | Blog, Inspections, Sellers
We want to sell our home “as is.” Is this possible?
If everything comes together perfectly, then yes, it is possible to sell your home “as is” — here is what you will need to do to make that happen!
First, you must start by having your home pre-inspected. Very few buyers would consider waiving inspections if the home has not been a qualified home inspector, with reports provided to prospective buyers. You will then need to take the inspection and use it to thoroughly complete the disclosure, making sure that you clearly identify all deficiencies that you aren’t planning to repair. If there are larger items such as a high radon reading, suspected mold or knob and tube wiring, you should at a minimum get estimates for the repairs. All of these things, the disclosure, the inspection reports, and the estimates, all need to be provided to prospective buyers.
The second step to a successful “as is” sale is to price the home for the condition you now know it to be in. The advantage to this approach is being able to tell buyers that the price reflects known condition. You will be far less likely to have requested price adjustments later for unknown issues. It is very important that your chosen price reflect the condition you now know your home to be. For example, if your home has knob and tube wiring, you can’t expect to receive the same price as a similar home that had been rewired. Rewiring is generally speaking a $20,000 – $40,000 project.
Finally, a great marketing strategy is key. To truly achieve an “as is” sale your agent will need to drive in significant traffic and generate multiple offers so that the bidding buyers are willing to waive all inspections in order to be the winning bidder.
I just orchestrated this approach on one of my listings and it worked perfectly. A seller I represented wanted an “as is” sale, did the pre-inspections, obtained estimates and priced very well. We ended up with 4 offers, inspections waived, and ended up selling at nearly 10% over list price! The up-front effort was well worth the end-result!
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by Kathe Barge | Sep 10, 2019 | Blog, Sellers
We plan to move out of our home before we put it on the market. Any thoughts on selling an empty home?
Some homes definitely sell more readily vacant – my last home was one of them – and so I definitely do not dissuade sellers from emptying their homes before selling them, but there are some important tips to keep in mind!
If you are emptying your home, then empty it. Do not leave behind the items you don’t want. Do not leave behind soaps, shampoos, chemicals, lawn fertilizers… Empty is empty. So please plan on a complete clean out. If you need help finding people to help dispose of items, give me a call!
It is critical to be sure that once your home is empty, you bring in a handyman to make sure that everything is in good order. Holes should be patched and touch-up painted, scuffs eliminated, carpets and windows cleaned, all light bulbs working … When there is no furniture to look at, the condition of the home is all the more important.
Make sure you have a plan for upkeep of your empty home. The yard must be regularly maintained, including weeding, leaf and snow removal. The interior tends to be easier to keep up, but do be sure you arrange for a periodic quick clean. It is also a good idea to hire a neighbor or friend to check your home regularly to make sure that there has been no crisis at your home (such as a broken water pipe).
Be sure to keep your home properly conditioned (warm enough in the winter and cool enough in the summer). I have actually seen mold grow inside a home when sellers do not keep the air conditioning running in warm weather in their vacant homes – this will cost far more to clean up than the air conditioning bill! Finally, consider putting lights on timers so when buyers drive by in the evening, your home does not appear dark and unloved!
Selling a vacant home is not a bad thing, but it is important that you follow these tips to be sure your home is presenting well to prospective buyers!
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by Kathe Barge | Aug 26, 2019 | Blog, Home Staging, Sellers
We are finding the process of decluttering to get our home ready to sell very challenging – any suggestions on what to do with all this stuff?
If you’ve lived in your home for a while, it’s easy to accumulate a lot of “stuff,” yet we all know from HGTV and my weekly columns how important it is to present a more minimal home to the market to maximize your price and minimize your days on the market. And yet, more often than not, cleaning out is easier said than done!
I’d like to start with a reminder that once you have committed to moving, be it now or in 5 years, its key to adjust your mindset. Moving all of the “stuff” that you have accumulated to your new home is going to rack up your movers bill, and movers are surprisingly expensive. If you wait until your home is under agreement to address your accumulations, you are going to feel like you are in crisis mode having to address it all in a short time frame! So start now, and think about what you really are going to want/need in your next residence and then get rid of everything else! Below are some suggestions on what to do with your stuff. I’ve had to come to the difficult realization that my kids don’t want the basement full of stuff I saved – you may have some of the same processing to do.
Take advantage of your waste management program and call for the free hazardous waste disposal bags and start getting rid of old paints and other toxic substances. Most garbage contractors will also haul away at no additional charge one larger item per week, such as an old mattress and box spring set (which counts as one item). You would also be surprised, if you put unwanted items on the curb a full day ahead of trash pickup, how many of them will be gone overnight. Drop off old, broken or unwanted appliances for recycling at the Appliance Warehouse on the South Side. Left over items from renovation projects can be donated to Construction Junction in Point Breeze. Clothes can be donated to a myriad of local charities including the Sewickley Academy Clothesline Sale coming up in September. And all of the household items and furniture you don’t need or want anymore can be donated to the Day on the Lawn Fundraiser at the Presbyterian Church, Sewickley – the last two drop off times this year are this Friday, 8/30, 9am-noon and Saturday, 8/31, 9am-noon! If you have items of higher value that you don’t want to just give away, there are many options for selling these items – give me a call and I can connect you to valuable outlets for selling your treasures. If there are items that you want to hold onto them but they are not being incorporated into the home staging, I recommend moving them to an off-property storage facility or using a storage pod that you can load in your driveway and have taken to a storage facility. I would be happy to chat with you personally about how to orchestrate it all – just give me a call! 412.779.6060
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by Kathe Barge | Aug 19, 2019 | Blog, Sellers, Sellers-Contracts
I spent a lot of money on my lighting fixtures and really don’t want to leave them in my home when I sell it – can I take them with me?
This question comes up more often than you might think! Sometimes the fixture is a family heirloom or was a gift for a special occasion. Maybe it has followed you from home to home and you can’t imagine a home without it. Maybe you just absolutely love it. Or maybe it was very expensive and you just don’t want to leave it behind.
Whatever the reason, you absolutely can take a favorite fixture, keeping in mind some important guidelines. First, the best thing you can do is to remove the fixture before listing your home and replace it with a stylish but not to pricey replacement. If you are like nearly every seller out there, you will want top dollar for your home and that will be much harder to achieve, so be sure to find something that is stylish – I can help with that. It is far better that the buyer never see the fixtures you want to keep – they might attach to them and removing them after the buyer has seen them could jeopardize the entire deal.
Sometimes, however, it is not possible to remove the fixture before listing the home. Occasionally fixtures are too big or fragile and require special crating to move them. If this is the case with your fixture and there is no way it can be removed in advance of listing your home, it is critical that you disclose this upfront. It should be listed as an exclusion in the MLS and in the property brochure. Hopefully with upfront disclosure the buyer will not attach and you will be able to remove them before you close. You will need to cap the fixture outlet of course – you cannot simply leave the wires hanging out of the ceiling! Be certain before you sign an Agreement of Sale that the fixture is clearly listed as exclusion.
Leaving the lights up and listing them as exclusions is clearly easiest for you, but keep in mind that if you are expecting a premium price for your home, a buyer may balk at you stripping lights from the home. For this reason, removing the lights pre-listing and replacing them with stylish choice is the best alternative!
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by Kathe Barge | Aug 12, 2019 | Blog, Buyers, Sellers
I’m superstitious and want to avoid buying a haunted house. Does a seller have to disclose that information?
We live in an old town, with homes dating back to the early 1800s. With old homes comes a lot of history, and sometimes a ghost story or two. While approximately half of our states do require disclosure of paranormal activity, Pennsylvania is not one of those states. Pennsylvania also does not currently require a seller to disclose if someone has died in a home, although they cannot affirmatively lie if asked.
Many other states have adopted far more comprehensive disclosure laws. In our neighboring New York, paranormal activity must be disclosed. In California, any death in a home in the preceding three years must be disclosed. And in Massachusetts, the law is even more comprehensive, requiring disclosure of paranormal activity, as well as whether the home was ever the site of a felony, suicide or homicide or whether someone with HIV ever lived in the home.
Our disclosure simply asks whether there are any material defects, which is defined as anything that could significantly impact value. Material defects would clearly include any major problems with the physical structure, as well as pending tax assessments and disputes over property boundaries with adjoining landowners. But what about those ghostly apparitions or eerie cries in the night? According to a well-known California appraiser who specializes in diminution of value, a well-publicized murder can reduce value by 15% – 35%. Does a ghost reduce a home’s value and need to be disclosed? Right now, the answer is no in Pennsylvania, although sellers wishing to avoid lawsuits would be well advised to disclose anything that could be seen as stigmatizing a property, including paranormal activity and deaths in the home. For some buyers, value actually increases with the prospect of living among ghosts. But before disclosing the ghost in your attic, be sure there isn’t a rational explanation for what you are experiencing.
Buyers, if you don’t want to move into a haunted home, what can you do to protect yourself in the absence of required disclosure? You can start with the internet – do a thorough search of the property address and sellers’ names. That will likely turn up information on any more recent concerns with the property. You can also pay for a property report at Diedinhouse.com, but I can’t vouch for its accuracy. Some recommend burning sage to rid the home of spirits, and if all else fails, you can always call Ghostbusters!
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by Kathe Barge | Jul 31, 2019 | Blog, Home Staging, Listings, Property Updates
We’ve lived in our current home for 20 years and have kept up with maintenance but haven’t done much else – how much remodeling do we really have to do before putting it on the market?
You’ve lived in your home long enough that you have probably “used up” a lot of the value that you bought with your home and will need to restore some of that value if you hope to protect your original investment.
Carpeting is a really good example. I’m sure you are aware that colored carpeting must be replaced with neutrals, but even the most neutral of carpets should be replaced if they are 20 years old. After 20 years your carpets will have had more than a lifetime of use and the value that might have been there when you bought the home is long gone. In fact, the old carpets might even have a negative impact on price, even if there are not visible stains. The buyers will assume that they need to be replaced and will deduct their view of what that will cost from what they are willing to pay you for the home. Several of the “big box” stores have affordable neutral carpets in stock for quick delivery and installation, making this aspect of prepping a home for market reasonably straightforward.
You should also consider whether you have used up all of the realistic useful life that might have remained in your mechanicals. For example, if you haven’t replaced the water heater in 12 or more years, you have used up all of its value – it has outlived its expected useful life. It would probably be a good idea to replace it with a new water heater. The same can be said for furnaces – while their useful life is longer than a hot water heater, if its pushing past 20 years old, buyers are not going to look favorably on it. In fact, as you can imagine, this thought process can be applied to anything with a predictable useful life, such as kitchen appliances and roofs.
How much remodeling you will need to do after living in the home for 20 years will depend on how quickly you want to sell it and how aggressive you want to be on price, but the higher the price you hope to achieve, the more “pre-listing” remodeling you will need to do, returning old systems to a full life expectancy for the new owner. Of course, if you are willing to discount the price upfront to allow for more than enough room for the needed updates, you can skip the remodeling and move straight toward listing your home!
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by Kathe Barge | Jul 22, 2019 | Blog, Buyers, Sellers
We are thinking of renovating our master bathroom – is that a good investment to make? 
If you are thinking of remodeling a portion of your home, it is important to first consider what is currently going on inside your home from a design perspective. It is not possible to overstate the importance of consistency in design when selling a home. Buyers uniformly respond favorably when a home flows in a consistent “theme” through the home. What does this really mean? In an ideal world, your color palate would move smoothly from room to room. Every room does not have to be the same color, but the colors should harmonize. In other words, you should not be using both the 1980s burgundy & green palate along with today’s grays and browns in the same home. As soon as you begin to move a newer color palate in, the old one must disappear completely. Smaller details must also blend seamlessly. If you like the nickel and chrome (silver based) colors, use them throughout for cabinet knobs, lighting and bathroom/kitchen fixtures. Do not choose nickel for one bath and brass for the next. Buyers will subconsciously feel the home needs work as they will sense the lack of consistency. The same is true for the bathrooms themselves. If you decide to renovate your master bath, that does not mean you need to renovate every bath, but you would be well-advised to plan your master bath so it also harmonizes with what is already in your home. If the “hardscapes” in your baths (counters, floors) are in the beige family, it would be a bad idea to do your master in white carerra marble, no matter how “in” that might be, unless you are prepared to update all baths. Choose instead travertine, beige granite or a beige based marble that will blend more smoothly with your existing baths. The impact to a buyer of “wonderful new master bath” will have the added benefit of helping to harmonize the entire home and will make the entire home feel more updated. So yes, renovating bathrooms are an excellent investment, as long as your investment harmonizes with the rest of your home and does not make everything else look dated. If that happens, you may be walking down a slippery slope where you need to take on more than just the master bath in order to recoup your investment!
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by Kathe Barge | Jul 16, 2019 | Blog, Inspections
What kinds of items would be viewed as “hot buttons” for home buyers on inspections?
If you are a home seller, there is an ever increasing list of items that you will be expected to address if any are discovered on your home inspection. Given that, if you are thinking about selling your home, it would be a good idea to determine if any of these conditions exist at your home and remedy them prior to listing your home. Items that sellers are generally expected to address these days include:
Radon: if your home exceeds 4.0pCi/l, you will be expected to remediate the radon, even if it was a low reading when you bought the home. Radon varies over time. The estimated cost for a system is approx.. $1000.
Mold: If there is mold anywhere at all, you will be expected to have it remediated. Basements and attics are the most obvious places mold hides out, but be sure to check showers and under sinks.
Electrical: If you have knob and tube wiring, you will likely be paying for it to be removed and replaced, unless you price your home with a rewire in mind and disclose its presence. If your home has any Pushmatic brand electrical panels, buyers will also expect those to be replaced.
Broken seals: if you have thermopane windows, doors or skylights in your home, buyers will expect you repair the broken thermo seals. This is evident because the windows have a cloudy look to them. There are a few companies in Pittsburgh that can do this reasonably affordably. If you disclose the broken seals and price accordingly, you might be able to avoid repair.
Septic/sewer: Sewer lines are the newest “must do” inspection. If a buyer finds roots in your sewer line, at a minimum you will be expected to clear the roots from the line, but if they are bad you will be expected to line or replace the line. This can be extremely costly so I highly advise that you camera your own lines in advance of selling and get them in good shape.
You can be certain that if any of these conditions exist in your home, you will be expected to remedy the condition unless you disclose its presence and price accordingly.
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by Kathe Barge | Jul 9, 2019 | Blog, Buyers, Real Estate
Dear Kathe:
You often write about making sure to price our home correctly for a better chance of a successful sale. How do we do that?
We all know the story of Goldilocks – be it the porridge being too hot, too cold or just right, or the beds being too big, too small or just right, or the chair being too hard, too soft or just right, the winning combination was not an extreme but the “just right” spot in between.
The same is true when pricing homes, and in particular, Signature homes. Price them too low, and they fly off the market, most likely far below a price you could have achieved. Price them too high and they sit for months or years. The trick is finding that sweet spot in the middle that will drive in an offer in a reasonable time, maximizing your return.
But how to find this sweet spot? If I could invent an App for that, I would be rich! Zillow has tried, but their Zestimates are often hopelessly flawed for unique communities like Sewickley, and particularly for our Signature homes. A computer in a remote location simply cannot translate all of the high-end amenities you may have added to your home into a realistic number. Human judgment is required. And yet your agent may not have the most objective opinion – you may be friends, for example, and he may not want to hurt your feelings. And it is certainly not wise to rely on your own opinion – we are least objective about our own homes!
That is where the appraiser comes in. Having your home pre-appraised may be your very best course of action. For approximately $450, you can have an objective analysis that will not only allow you to most accurately price your home but will allow you to say to buyers “this home was priced based on an independent appraisal.” That will carry a lot of weight when buyers are assessing how realistic your price is and usually drives in a price close to the appraisal. Please do note, this appraisal must be independent of a refinance – it must simply be done for pricing guidance for it to be truly objective. But if you take the time to get it “just right” out of the gate, after the buyers have tried on all the “too highs” yours will be the one they pick!
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by Kathe Barge | Jul 2, 2019 | Blog, Sellers
It seems prices are all over the board these days. How do we figure out what our home is worth?
There are many factors that go into determining a home’s value. The first, most important thing to keep in mind, however, is that it’s not what you think. To rephrase, what you think the value should be, or what you think you need to get for the home to either recoup your investment, reimburse you for time spent renovating, or get you what you need to move to your next home is not a factor in determining value. A home will sell for what a buyer thinks the home is worth – not what a seller thinks its worth. So how do you determine that number?
Value is determined first and foremost by comparable sales. What other homes have recently sold for is the most relevant gauge of what the market will bear for your home. If you haven’t been in the homes, however, you will need to rely on a professional to make the comparison for you. Factors to be considered include size of lot, usability of lot (flat is better) and location of the property both in town and as it relates to other homes (currently, closer to the center of the Village will bring more money, across the street from a home in disrepair, less). Also considered are above-grade square footage on the main two floors (finished lower levels and third floors add some value but generally not at the same square footage price as the main two levels) and configuration of rooms (do you have an eat-in kitchen, a family room open to the kitchen, a dedicated master bath). Finally amenities are considered. How many garages do you have and are they detached, integral or attached (the most valuable)? How long ago was your kitchen and bath updated? Under 10 years? Do you have stainless and granite? Have you removed all of your wallpaper? All of your old brass? All of your colored carpets? Homes sell every day with dated amenities, but their existence definitely affects price. When looking at other homes that have sold, it is important to have a realistic understanding of how your home really compares to those homes.
The investment you have made in the home also has some relevance. If you have made significant improvements (beyond a fresh coat of paint and new carpeting), there is a high likelihood that you will be able to recoup some of your investment. It is important to prepare a detailed list of those improvements to substantiate value to potential buyers.
Other homes currently available for sale, however, are not a particularly relevant factor to look at. Many of our homes sell for substantially less than the sellers were originally asking, and while our average community realization is 89% of asking price, there are homes that have sold at nearly half of their original asking price. Competing listings are only relevant to determine how much competition you will have – not how much your home will sell for.
In the end, its what a buyer thinks, based on where other homes are selling and how yours compares, that will determine where your home will sell, and all of the marketing in the world will not change that reality!
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by Kathe Barge | Jun 24, 2019 | Blog, Listings, Sellers
How long should a seller wait to reduce the price of their home? Is it ok to start at a higher price and reduce the price later? 
There are many “rules of thumb” in real estate that provide suggestions as to when a price reduction is appropriate. One of the most common is after “13 weeks or 13 showings.” In other words, if your home has been on the market for at least 13 weeks, or if it has had at least 13 showings, and you haven’t received an offer, there is a good possibility that it is priced too high and should be adjusted. However, there are many scenarios in which a price reduction is not warranted. First, you need to consider whether there are any buyers in your market segment. If other homes are selling readily and your home is not, then you need to re-evaluate your price. However, if nothing is selling and there are just no serious buyers in the market, then reducing your price is unlikely to spur on a sale. You also have to consider whether there are factors that are holding back your sale that could be corrected for less money than you would lose by reducing your price. For example, if your home has dated carpeting or wallpaper, it may be more cost effective to change the carpet or remove the wallpaper. Reducing the price is unlikely to incent a buyer to take down your wallpaper or change out the carpeting — no one wants to do the work these days, so it might just fall on you in order to draw the offer. Additionally, if your home is in need of a more significant renovation, such as a new kitchen, reducing the price is not necessarily solving the problem – you are just putting your home in a pool of less qualified buyers who also probably don’t want to take on the project. In this scenario your two best options are either to reduce to below market so a buyer senses a deal and is willing to take on the project, or be patient and wait (the months or years) for a buyer to come along who appreciates your house as it is. Generally speaking, it’s a far better plan to price correctly out of the gate than to push the market and have to reduce later. If you take a more conservative approach to pricing, you also have a good chance of a bidding war. Reducing later is highly unlikely to bring buyers who have previously considered your home back to the table – they have moved on. Even the 13 weeks may be too long if there are strong market signals that you came on too high. My best advice is to trust the judgment of a local real estate professional when it comes to pricing – you only have one chance to make a first impression!
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by Kathe Barge | Jun 17, 2019 | Blog, Mortgage
My friend’s closing on her existing home was delayed and she ended up having to delay her closing on her new home, and was stuck with all of her stuff on a moving van and unable to move in to her new home. How can these major inconveniences be avoided?
Back-to-back closings do raise the possibility of delayed closings and moving vans sitting curbside waiting to unload. When there are multiple transactions lined up on top of each other, if one in the line-up fails to close on time, it will affect everything in line behind it. Ideally, transactions would not be back-to-back, but this only works if buyers are paying cash out of existing accounts or have sufficient resources to carry two homes, so that the new home can be closed independently of the closing on the old home. But even if transactions are not stacked, closing delays can still occur, causing unhappy buyers and sellers, because lenders aren’t ready.
So how can these inconveniences be avoided? Selection of your lender and closing agent are absolutely critical. There are a lot of people out there who would like your mortgage and closing business. Many may even be your friends, neighbors or family members. But the relevant question, in addition to rates and fees, is whether they close on time every time. This is where you really need to rely on your agent’s expertise. Even consumers who move frequently only engage in the mortgage process once every few years. A busy agent is dealing with lenders daily. We know who stands behind their word and will not let you down, and who will not. A well-intentioned but poor performing lender can cost you significant unhappy delays – make a careful choice up front.
It is also crucial that you get your lender all of the documentation that he needs immediately at the time of mortgage application. You don’t want to be part of any delay. Finally, even once you have turned in all of your paperwork, its important to check in with your lender weekly, daily the week before closing, until they tell you that they have the “clear to close.” The old saying “the squeaky wheel gets the grease” is never truer than when it comes to closing your mortgage loan – stay in close touch with your lender!
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by Kathe Barge | Jun 11, 2019 | Blog, Buyers, Sellers
We’ve lived in our current home for 16 years and have kept up with maintenance but haven’t done much else – how much remodeling do we really have to do before putting it on the market?
You’ve lived in your home long enough that you have probably “used up” a lot of the value that you bought with your home and will need to restore some of that value if you hope to protect your original investment.
Carpeting is a really good example. I’m sure you are aware that colored carpeting must be replaced with neutrals, but even the most neutral of carpets should be replaced if they are 16 years old. Even if you don’t have pets and absolutely never eat or drink outside the kitchen, avoiding spills that could stain, after 16 years your carpets will have had more than a lifetime of use and the value that might have been there when you bought the home is long gone. In fact, the old carpets might even have a negative impact on price, even if there are not visible stains. The buyers will assume that they need to be replaced and will deduct their view of what that will cost from what they are willing to pay you for the home. Several of the “big box” stores have affordable neutral carpets in stock for quick delivery and installation, making this aspect of prepping a home for market reasonably straightforward.
You should also consider whether you have used up all of the realistic useful life that might have remained in your mechanicals. For example, if you haven’t replaced the water heater in 16 years, then even if it was new when you bought it, you have used up all of its value – it has outlived its expected useful life. It would probably be a good idea to replace it with a new water heater – you benefited from 16 years of use from the old one – when you replace it you should think of it as simply restoring the home to its functionality before you used its systems for the past 16 years. The same can be said for furnaces – while their useful life is longer than a hot water heater, if its pushing past 20 years old, buyers are not going to look favorably on it. In fact, as you can imagine, this thought process can be applied to anything with a predictable useful life, such as kitchen appliances and roofs.
How much remodeling you will need to do after living in the home for 16 years will depend on how quickly you want to sell it and how aggressive you want to be on price, but the higher the price you hope to achieve, the more “pre-listing” remodeling you should do, returning old mechanical systems to a full life expectancy for the new owner.
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by Kathe Barge | Jun 4, 2019 | Blog, Buyers, Inspections, Real Estate, Sellers
My home has so many special features. I think it would be best if I were at showings so I could explain them to prospective buyers. Is that ok?
When you are selling your home, its normal to think that only you can fully convey your home’s fine qualities to a buyer. This leads some sellers to consider the possibility of being home for showings, so that they can make sure that the buyer prospects appreciate all of the home’s amenities. While this may seem sensible to a seller, nothing could be further from the truth!
When buyers visit your home, it is important that they be allowed the space to imagine the home as their own. This starts, of course, with home staging, so that the home is not overly personal when the buyers arrive. But it extends to allowing them to tour the home alone with their buyer agent. For buyers to buy a home, they must bond to a home. For buyers to bond to a home, they need to be free to relax in your home and chat with their agent about what they would do to make the home their own. This will not happen if you are present. So what can you do to make sure they appreciate your home’s qualities? Hire a listing agent who will design a custom brochure for your home that is available when buyers visit your home. Such a brochure is your best ammunition – they can take it home and recall all of your home’s wonderful features and get their questions answered as well.
Giving the buyers their space extends to the home inspections as well. The period during the home inspection is one of normal buyer remorse. Did we buy the right home? Will a better home become available? Allowing buyers the freedom to return to your home alone will allow them to bond again to your home and stay committed to it during the sometimes difficult inspection process.
In fact, the only time you should interact with your buyer is at the closing. From initial showing to return visits, inspections and walk-throughs, you should always vacate your home and give the buyers their space!
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by Kathe Barge | May 28, 2019 | Blog, Buyers, Home Staging, Sellers
Everyone says we need to “neutralize” our home before we try to sell it, but what does that mean?
If you watch HGTV or read my weekly articles, you likely know how important it is to neutralize your home before you sell. But what exactly does that entail? Paint color is obvious. Your home is far more likely to sell for top dollar if its painted in a neutral color palate. This does not mean your home must be nothing but white. It does, mean, however, that you should remove most strong colors in favor of “colored” neutrals – colors such as greige or light gray. A colorful room or two is fine as long as the color was chosen in the past couple years (trends in color change quickly, but when you live with a color daily and are not in the design business, you probably don’t realize when a color is no longer “in”).
Neutral colors in floor coverings is also key. Colored carpets are extremely difficult to sell. Be careful with ceramic tile –when it goes out of style, it is painfully obvious that you have dated tile and its expensive to replace. However, neutralizing a home goes beyond paint color and floor coverings. Consider the age of your most likely buyer. Buyers these days in their 20s, 30s and 40s as a general rule favor clean lines to florals. If you have floral drapes, silk flower arrangements or large floral prints on your upholstery, this could be a real turn off to a buyer even though these items do not convey with the home. The impression says dated even if the structure itself is not. This is pretty simple to address, however. Pack these things up – you are moving – get a head start. Drapes are great for decorating but unless they are very recently installed, they are unlikely to help your sale – most buyers prefer to see your windows. Slipcover furniture if it’s fabric trends toward yesteryear’s design styles.
Neutralizing also goes to removing personal effects – family photos being the most obvious. And of course, its important to neutralize odor. If you have pets, keep litter boxes perfectly clean and pet beds, blankets and toys frequently laundered. Have a friend double check – you should not be able to tell you have a pet when you enter your home. If you smoke, don’t smoke inside. If you like to cook with spicy food, avoid it while your home is on the market. If musty odors emanate from your basement, run a dehumidifier 24/ 7. If your refrigerator stays with your home, make sure it is clean and smells fresh.
A neutralized home may seem impersonal to you, but try to remember, you are moving! While it may not be your style, it is far more likely to attract a buyer and a good price!
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by Kathe Barge | May 21, 2019 | Blog, Mortgage
I have a friend who just had a terrible time closing on his mortgage loan because he moved some money into his checking account right before closing. Any tips om making sure the mortgage process is a smooth one?
Mortgage rates remain low, but the process of obtaining a mortgage is more complex than most buyers appreciate. Underwriters are extremely detailed in their review of mortgage applications – one small “mistake” could derail your entire application. Take the time before you buy to understand the possible pitfalls, and then steer clear for a smooth mortgage process.
First, don’t make large undocumented deposits into your bank accounts. Mortgage guidelines require that underwriters review all deposits reflected on bank account statements. If there are deposits present on a bank statement and the underwriter cannot tell where the funds came from, then the underwriter may ask for you to provide a “paper trail” to document the source of the funds used for the deposit. When making a deposit, keep the associated paperwork (i.e. the “paper trail”) you may have received that would show where the funds came from for the deposit (i.e. check stub, copy of check, receipt for liquidation of another account, etc…). Try not to make cash deposits if at all possible as it is difficult to show where “cash” came from. Try not to move your money around between accounts. There will be plenty of time to consolidate funds if you desire after you’ve closed on your new home. Be sure to save ALL pages of your bank statements. Do not throw them away or shred them.
Second, strive to have ‘boring’ bank statements – no NSF charges, no unusual deposits, not a lot of moving around of money between accounts. Achieving this will definitely make your mortgage process go smoother.
Finally, don’t open new credit and don’t take on new debts. Unless advised to do so by your mortgage professional, you should try to avoid having your credit checked by anyone or taking on any new debt (i.e. credit cards, car loans, lines of credit, etc…). Numerous credit inquiries may impact your credit score which in turn could affect your mortgage loan and interest rate quote. In addition, underwriters may require that you write a letter explaining the inquiries on your credit report stating if you did or did not acquire any new debts as a result of the inquiry. While it’s tempting to take advantage of an extra 10% off at a department store if you open a new credit card with them, it may be best in the long run to pass on those offers and use one of your existing credit cards.
Check back next week for more tips on making your mortgage application process a smooth one!
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by Kathe Barge | May 14, 2019 | Blog, Inspections, Listings, Sellers
Selling our homes seems like it will be a very stressful endeavor. Is there any way to make it any easier on us?
Once you have lived long enough, you realize that if there is something to be done, there is usually an easy way and a hard way. When it comes to selling your home, why not make it easy? If you make it easy, you are far likelier to have a successful transaction.
First and foremost, make access to your home easy for buyers. Use a lockbox and always be ready to show. Busy agents with serious buyers don’t have time to track down keys held by listing agents, or worse yet, schedule showings around your listing agent’s schedule. You can’t sell if you don’t show – make it easy with lockbox access (which notifies your agent immediately every time it is accessed) and be ready to accommodate last minute showing requests.
Make negotiations easy. When you do receive an offer, do not get upset or offended. Every buyer approaches negotiations differently. Some will need to give you long letters explaining their analysis of value. Don’t take it personally – just understand that it is a unique opportunity to understand how buyers perceive your home. If one buyer is bold enough to tell you, the chances are there are others with the same concerns. While you likely put your heart into the home, you are leaving and need to detach. Be pleasant and non-defensive in your response and try to focus on the one or two points in the offer that concern you the most. The more flexible and good-natured you appear, the easier it will be to get and keep the buyer in the deal. Be easy to reach during negotiations as well. The more protracted the negotiations, the greater the chance the buyer’s interest will wane and you will lose the deal.
Make inspections easy. I have said this many, many times, but if there are conditions that exist that are called out by the inspector and they were not on your disclosure, you should expect to pay for them or lose your deal. You can make this very easy on both you and the buyer – have your home pre-inspected – then a buyer can make an offer knowing the condition at the time of offer and you should sail through the inspection.
Sound easy? It is! Keeping these simple concepts in mind will make your home sale much easier.
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by Kathe Barge | May 6, 2019 | Blog, Buyers, Inspections, Sellers
I’ve heard that agreements on many homes have fallen through lately from home inspections – why is that?
Our market has traditionally been one where buyers know they are buying old homes and allow the seller some leeway in not presenting a “perfect” home from an inspection standpoint. However, in many parts of the country, this is not the case. Sellers are expected to remedy all issues noted by home inspectors prior to closing. As more and more people migrate here from other parts of the country, our prices are going up, but so are the buyers’ expectations as to a seller’s responsibility for concerns discovered on a home inspection. At the same time, inspectors are getting significantly more particular. And so yes, it is absolutely possible to have purchased a home only two years ago and have new concerns arise that clearly existed and were overlooked when you bought your home. And yes, it is equally possible that you will be expected to fix them and if you refuse, your sale might fall through.
This can often leave a seller feeling like they are the unlucky one who got stuck holding the “hot potato.” As the years pass, the list of “hot button” issues mounts and if you are the owner when the issue is discovered, you will be the one paying the bill even though the home was bought and sold many times in advance of your ownership. These hot button issues include items such as old sewer lines, radon, mold, damp basements, lead water lines, asbestos (fireplace inserts, duct tape, pipe wrap or flooring) knob and tube wiring and pushmatic electric panels. If your home has any of these issues, you should figure you will be the one footing the bill and address them before they become an issue on a home inspection.
The best way to prevent an inspection fall through or an unexpected bill for defects is to have your home inspected before you put it on the market. A pre-inspection will allow you the opportunity to fix those items that can be fixed and disclose the rest to save yourself from a laundry list of requests. Be sure not to ignore the small stuff that comes up or that you know is wrong. For example, when I list a home, I specifically ask sellers if all of their windows open, stay open, shut and lock, and if any are cracked or have broken seals. Sellers more often than not disclose no issues with their windows and yet it is one of the most frequent inspection deficiencies. Take the time to do your homework – get your home inspected – repair or disclose any possible concerns – and save yourself from a long last-minute repair list and potentially even from losing your sale.
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by Kathe Barge | Apr 30, 2019 | Blog, Buyers, Home Staging, Sellers
What do you think about all of the TV shows that focus on home buying and selling homes?
If you follow my column, you have undoubtedly noted me mentioning for what seems like years now that our market is hot and our inventory has never been lower. It certainly couldn’t be a better time to sell. You may in fact have just heard that your neighbor’s home sold for top dollar in record time. How do you make that happen? Start by watching more TV!
Surprising advice, perhaps, but TV sets our style expectations and our aspirations of how we want to live our lives. Your potential buyers are watching TV and then coming to your home and expecting to see what they saw on TV. Want to make the most money? Meet their expectations!
This is easy to do if you also watch a healthy dose of HGTV. There you will quickly find the latest trends and tips on how to achieve them in a cost-effective manner. You will see what home designers are pushing and know what buyers will be looking for in your home. House Hunters is a particularly good show to learn from. You will get insight into buyers’ thought processes – you can listen in on their conversations and take note of the factors that affect them in both positive and negative ways. Armed with this information, you will be ready to spring into action and create a home that buyers are instantly attracted to. And why are they attracted? Because they saw it on TV!
As a full-time real estate broker, every day my job lives like an episode on House Hunters. Through countless hours listening to my clients as they evaluate potential homes, I am easily able see how HGTV has greatly impacted the home selling process. Those sellers who choose to take to heart the lessons espoused on HGTV are rewarded with more money in less time. They create instant attraction by making their homes appear as if they were pulled straight from an episode of HGTV. So whether you plan to sell next month or next year, start watching more TV, put the advice into action and pocket more money when you sell! And if you’re not a fan of these shows, give me a call and I will come out and give you an abbreviated version as it applies to your home!
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by Kathe Barge | Apr 25, 2019 | Blog, Buyers, Inspections, Mortgage, Sellers
Is the highest offer always the best offer in a multiple offer situation?
For those of you looking for a quick answer, the answer is a resounding no! For those of you wondering why, read on!
There are many important components to an offer, and price is only one of them! First is financial ability to perform. An offer is worth nothing if the buyer is unable to pay for the home. A cash offer with proof of funds is your best bet, but most buyers take mortgages. If the offer is contingent upon the buyer getting a mortgage, make sure you receive a pre-approval letter from a local, well-reputed lender (and not an internet lender).
Second, make sure you receive a substantial amount of hand money. Hand money is all you have if a buyer backs out of the deal. Sometimes buyers just change their minds. Maybe a house they like better comes on the market. Maybe they figure out that the home needs more work thab they originally imagined and the remodeling costs get too high. Maybe they take a new job that is too far from your home. There are many reasons why buyers change their minds and if you lose your buyer, you will want to be sure you have a decent amount of hand money to compensate you for the loss.
Finally, some buyers will offer more for a home with the expectation that they will “beat you up on your home inspection.” Your best line of defense against these tactics is to make sure that you have been exceptionally thorough in your disclosure so that there is nothing (or almost nothing) wrong that you haven’t already told them about. A pre-inspection is a great way to make sure that your home is in great shape and that all issues are disclosed – it will save you money in the long run. Some buyers will even waive inspections if you provide a pre-inspection from a quality home inspector, which is the best scenario of all!
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by Kathe Barge | Apr 16, 2019 | Blog, Buyers, Pittsburgh, Sellers, Sewickley
What is going on with the high-end market in Sewickley? Why don’t there seem to be many high-end sales?
Our high-end market has been slower than normal for over a year now. Speculation abounds as to why that is the case, but it doesn’t seem that we are alone – sales of higher end homes in many pockets of this country have slowed. Many attribute that to the fact that our tax system was restructured to allow for a larger standard deduction and lower marginal rates but at the cost of limiting the deduction for property and income taxes to a combined total of $10,000. For high property tax jurisdictions such as our own, many commentators believe this has caused a slow-down in high-tax (i.e., high priced) home sales. I have held out hope that when people filed their taxes this past Monday, maybe they would discover that they are better off under the new system despite the deduction limitation and we would see the property tax fear fade into the background. I must admit that even as a former tax lawyer I have found the new forms a bit confusing, so I am really hoping we will see some favorable spin coming from tax preparers this week.
We may however need a general mindset adjustment. As a whole, our income taxes in PA are lower than the majority of states. Our earned income tax here in Sewickley is only 1%, compared to 3% in the city of Pittsburgh. We do not have sales tax on clothes or food as many states do. So while our property taxes may be on the high side, we are in a far better position overall than many residents of metropolitan areas with similar advantages to Pittsburgh. Property taxes are just a cost of living, and if your bucket list includes the amenities of a higher-end home, the taxes are what they are. The sooner our marketplace accepts this reality, the sooner our higher end homes will start selling again!
In the meantime, our middle and lower end market segments are moving fast and often with many offers. Homes in these segments that are priced appropriately for condition and amenities are often selling with multiple offers, and in a very short amount of time. These market segments are accelerating quickly in their pricing. Waiting for the home to show up on your Zillow search is likely going to be too late. If a move is something you’ve been considering, give me a call and we can strategize on how you can best meet your needs in this complex market we find ourselves in! 412.779.6060
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by Kathe Barge | Apr 9, 2019 | Blog, Buyers, Sellers
What advice do you have for pet owners hoping to sell their homes?
I am a dog lover. In fact, there are two canine members of my family. 60% of Americans own a pet, and 40% are dog owners. As a dog lover and owner I am aware that not everyone loves pets. If I am a home seller, this is particularly important to keep in mind.
It is critical when selling your home to remove any and all evidence of Fido!
What exactly does this entail? Smell should be your first concern. If you live with a pet you are probably used to the smell and don’t notice it, but your buyer will. Carpets should be professionally cleaned and deodorized to remove any possible smell. If any smell lingers after that, you probably need to change the furnace filter and quite possibly have the ducts cleaned. If you are still living in the home it is critical to keep all your pet things clean – launder blankets regularly, keep crates wiped down, empty litter boxes every day and give your dog a weekly bath. I can’t stress this enough. Any smell at all could kill your chances at an offer.
Cleanliness should be your next concern. If your home is vacant, after you move out make sure there is no evidence of a pet having lived there. Make sure there are no hair balls hiding in corners or behind doors. Clean or replace air return grills as they have likely become laden with pet hair and dander, resulting in a dirty look. Clean the vent cover on the bottom of refrigerators as well – they are often clogged with pet hair. If you are still living in the home, you must address all of the above as well as making sure that physical evidence of a pet disappears during a showing. Pack up toys and beds and tuck them in a discrete location.
Finally, if at all possible, remove the pets themselves for all showings for the best chance of selling the home. While Fido is likely cute as can be, many people are either fearful or allergic – why take any chances?
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by Kathe Barge | Apr 2, 2019 | Blog, Buyers, Sellers
April 15th always reminds me of taxes, and how high our taxes are here. Is this a disadvantage when it comes to selling homes in this area?
I always counsel my new clients relocating here from other states that property taxes are something that need to be viewed as part of an entire budget. Yes, our property taxes seem much higher than in many other regions of this country, and yes, upon first look, it can be a deterrent. But my advice to out-of-towners is to consider how much they pay each year in all forms of tax.
In Pennsylvania, we only pay a 3.08% income tax rate and here in Sewickley, we add on top of that an additional 1% on earned income only. We currently have no sales tax on food and clothing. We also have very low car registration fees at only $36/car. In some states, income tax alone can be as much as 8% – 9%, car registration fees/yearly taxes can exceed $550+/car and they do impose sales tax on food and clothing. If buyers are counseled to look at the big picture, more often than not they find that they are actually saving money when they move to Western PA, despite our high property taxes, but it does take a skilled realtor to get them over this hump.
When dealing with local buyers, property taxes are a much bigger issue. When moving up, buyers definitely have to consider taxes – they won’t be getting any new income tax breaks by just moving across town. Recently, the federal tax law changed and there is a $10,000 cap on the deductibility of the combined total of income and property taxes. Nationwide, this seems to have created a softening in the sale of high-end homes as there is little to no subsidy for your property taxes anymore (depending on how much you pay in state and local income taxes and whether they, on their own, move you above the $10,000 threshold). The expectation is that the lower federal tax rates will offset the reduced deduction, but for many who haven’t filed their 2018 returns yet, it’s too early to tell. My sense is that this will all settle out over the next year or two as we all adjust to the new tax rules.
In any event, whether buying or selling, it’s important to take the time to make sure that your taxes are in line with the market value of your home – if they are not you should appeal them so that inappropriately high taxes don’t become an even larger deterrent to a purchaser.
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by Kathe Barge | Mar 26, 2019 | Blog, Buyers, Listings, Marketing, Sellers
We are ready to put our home on the market but are private people and would prefer not to have the home in the MLS. Could you just show it if you hear of a prospective buyer?
I may be repeating myself here, but in this hot spring market, it really is an important message. There is simply nothing more powerful for driving in a high offer for your home than listing it with a real estate agent who is fully engaged in the marketing and selling of your home! Yes, you did ask a realtor, so you probably expected that answer, but here’s why.
First, Sewickley loves a secret sale. Everyone loves knowing what no one else knows yet, and buyers feel really special if they get the first chance at your home. But that secret sale is unlikely to drive in your best offer. What credibility do you as a seller have for pricing your own home? All homeowners love their homes and most feel they are worth more than the comparable sales. A real estate agent with a proven track record for pricing homes correctly is going to add an air of credibility to your asking price.
Buyers at secret sales will also automatically go for the “you don’t have a realtor” discount. In other words, you are saving nothing by not listing your home with an agent – the buyers will discount their offer to you based on what they think you would have spent in commissions. So your net will be the same (at best) as if you did have a realtor and yet you don’t have an advocate on your side helping you through all of the tricky scenarios that come up in selling a home.
Secret sales are also just that – they are not publicized city wide. There could be a buyer in the South Hills waiting for a home like yours and without a full market press, they will probably never find your home and may buy another, frustrated that “nothing” is on the market.
But most important of all – buyers at secret sales don’t feel the market pressure that a real estate agent can bring to your home. If there is a potentially interested buyer and they see your home marketed absolutely everywhere, they will assume that there are many other buyers out there and they are more likely to succumb to the pressure of the market and perceived competition and pay you more. If it is a secret sale, they can take their time, think carefully, and ultimately will either talk themselves out of buying altogether or talk themselves down in price. Neither is a good answer for you.
So don’t take any chances – if you are serious about selling, list your home with an experienced full time agent and engage the power of our larger market to drive in your best deal. Give me a call today and we can develop a strategy that is tailored to your specific needs and goals!
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by Kathe Barge | Mar 19, 2019 | Blog, Market Trends, Real Estate, Sellers
We are thinking of moving and want to make our home as perfect as possible for the market. How would you describe the “perfect” home that buyers today are looking for?
The warm weather is waking up the dreamer in all of us it seems! Thankfully, we all have a different idea of the perfect home, which keeps our market moving twelve months a year. Buyers are not all waiting for that one special home. They are waiting for their special home – but special comes in so many different shapes and sizes. Nonetheless, when thinking of selling, you will have a much better chance of selling your home quickly and at a higher price if you improve and decorate your home in a way that appeals to more buyers. Most homeowners settle into their cozy homes and forget all about trends and what’s hot in the market, and so it often comes as a shock when its time to sell and they have fallen behind the times in either amenities or style.
Want to know what’s in style with today’s home buying crowd? Pick up a Pottery Barn or Restoration Hardware catalog and that will give you a quick lesson on color palates and designs that are “in.” Of course, the lower you price your home, the further you can stray from current trends and still capture a buyer. But assuming you are like most of my clients, it’s sometimes easier to inventory what’s “out.” As realtors, this is a difficult message to share with your clients – the message is not that you do not have a lovely home. But in selling homes, one must first accept that you are leaving that home and then seek to minimize potential buyer objections while maximizing the “wow” factor.
With that in mind, here is my 2019 short list of the “gotta gos” – if you have these in your home, you are well advised to invest to sell: non-neutral carpeting, shag carpeting, wallpaper (unless applied sparingly and in the last 5 years), bold paint colors, stained woodwork (except in dens), paneling, dated lighting fixtures, non-neutral bathroom tiles and tubs, wooden toilet seats, linoleum flooring (except in lower price brackets) and formica countertops (except in lower price points).
Some wonder if offering the buyer a decorating credit is a good alternative to making changes pre-marketing. My experience suggests that credits are not effective. Buyers often screen homes online and never have the opportunity to find out about a credit. It’s best to make the updates. Some sellers believe that it is better to leave things the way things are and let the buyer make the changes to suit their tastes. This works, but only if you keep your price down. If you are looking to take advantage of possible market premiums. Not sure where to start? Give me a call and I can help connect you to the resources you need to get your home market ready!
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by Kathe Barge | Mar 11, 2019 | Blog, Buyers, Market Trends, Real Estate, Sellers
What is going on with the more expensive homes in Sewickley? It doesn’t seem like many are selling.
Sewickley’s high end market, defined for these purposes as homes listed above $1 Million, can be a very fickle thing indeed. I recently took a look at 6 years of data in this market segment and the results were fascinating. The fact that you sense the high end market may be less robust than in years past might be because we only sold 6 high end homes from May 1st to December 31st, 2018 (an eight month period). This was quite a surprise as we had sold 9 high end homes in the first four months of 2018. So far in 2019 we have seen three high end homes go under agreement – exactly the same number as sold in the same period last year. We are all hoping that we can return to a cycle in line with our 2017 numbers – in that year we sold an additional 17 homes after February 28th! If you look at long-term patterns its evident that these ebbs and flows are quite common in our high end. In 2014 we recorded an impressive number of high end sales. In 2015 that number was a bit more anemic.
What stands out in looking at the data, however, is that in the past six years the number of high end buyers coming to us through relocations to Pittsburgh is dropping. This may be because there are other high-end neighborhoods that have been built across the region and Sewickley is no longer one of the only communities you can move to if you want to buy a high end home. Buyers can choose a home in the north hills, for example, with the latest and greatest everything for less than they would have to spend in Sewickley. This may also be because some employers who anticipate faster turn around do not want their employees buying – our rental market is doing quite well as a result.
What to do if you are living in a high-end Sewickley home? First and foremost, we must keep our schools and community strong. What we have is unique – there are very few walking communities in the area and fewer that are in a top school district. Support our local stores, attend community events, give of your time and finances to our schools and non-profits. This helps to keep Sewickley wonderful and will help protect your investment. Don’t rely on everyone else – we are all busy but we all need to do our part to keep Sewickley appealing to new families. Second, be sure when you are ready to put your home on that market that you have taken the time to really prep it for market and that it shows fabulously. Remember, you aren’t just competing with the other homes in town – you are also competing with new construction in adjacent communities and those usually present as move-in ready!
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by Kathe Barge | Mar 4, 2019 | Blog, Buyers, Market Trends, Real Estate, Sellers
I am wondering if you could give an update on how the spring market is looking so far?
The spring market is off to an incredibly strong start, from a seller’s perspective, IF a home is listed under $1million. New introductions are selling, often with multiple bids, and sometimes in less than 24 hours. Homes that have been on the market for many months are also selling, and even they sometimes have more than one offer! It is exactly what we all expected – a vibrant market, and its only early March!
Buyers are understandably frustrated! While houses are coming on the market, the lines of buyers in the more affordable price ranges would look like the black Friday lines at Best Buy when they are selling TVs for $100! New introductions are selling fast and for more than a simple analysis of the comps would suggest is a market price. But if you have been waiting for 6-12 months, this may be your best chance at a home that could work for you, so you may have to pay more to beat out other buyers and get in the door!
How do you win in a market like this? Buyers, you MUST be pre-approved for your financing. You need to know exactly what you can afford and be able to prove that, in writing, to the sellers you are trying to convince to pick you. Yes, there is some up-front work involved, but this is what it takes to win in today’s market! You should also have chosen and signed on with a buyer’s agent – waiting for homes to hit Zillow or to have an open house is not an effective way to win in a hot market. You need a full-time agent dedicated to getting you home options as soon as they are available. If you really want to win, you also need to spend some time assessing the compromises you are willing to make – 20 years in this business and I can state with confidence that the perfect home is just not out there!
Sellers, we have a huge inventory shortage that has been going on for two market cycles but this is not reflective of the norm in Western PA. The tables will turn at some point back to a buyer’s market. If a move is on your radar screen, now would be the absolute best time to call me to develop a strategy to get your home on the market and give you the best return on its sale!
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by Kathe Barge | Feb 27, 2019 | Blog, Buyers, Market Trends, Mortgage, Real Estate
We’ve been out of school for a few years, have been great savers and are thinking about buying our first home, but with the recession not so far behind us, it seems like a risky proposition. Any advice?
The millennials, as they are known, are a very risk adverse generation, having watched first-hand as many family members lost their jobs and/or their homes in the last recession. It’s not hard to understand why they have been the slowest generation to embrace home ownership as part of the American dream. But as scary as it might seem to take that first big step, home ownership remains one of the best investments you can make, and the sooner you get in the game, the sooner you will start making measurable progress toward achieving your financial goals.
Keep in mind that most of the housing losses from the 2008 recession were due to the immediately proceeding banking practices that are now far behind us. People were allowed to borrow without proof of ability to pay, to start with, and many used their homes as ATM machines, financing cars, vacations and college educations on their presumed housing appreciation. Today the lending laws are much stricter in an effort to prevent another crisis, and so you can be assured that if a lender has qualified you for a particular loan amount, you have passed some of the strictest standards and are more than well qualified by any objective standard to get in the housing game.
Owning a home will always be a far better choice than renting. It’s a rare day that owning what you are renting wont cost you less every month, and you are building equity (money you get back when you sell someday) with each payment. If you compare how much it costs you to own a home over 30 years, versus how much it would cost you to rent that home over 30 years, you will always have spent less money and in the end, you will have an asset that you own and can resell if need be. In addition, owning a home gives you certain federal tax breaks that renters don’t get, which further reduces the actual cost to you of owning a home. Home owners also lock in their housing cost for as long as they own that home. So while your $2000 rental payment will go up each year as your landlord increases the rent, how much you spend for a mortgage is locked in for as long as you own your home. Stay there 30 years and you will still be paying the same mortgage payment that you are paying today! No landlord will give you that deal!
This is complex, no doubt, and I would be happy to meet with you to go over the numbers in person, but there is no doubt that its never too early to get into the home ownership game!
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by Kathe Barge | Feb 12, 2019 | Blog, Inspections, Listings, Market Trends, Real Estate
Our neighbor just had to replace their sewer line – is that a common home inspection repair?
Sewer lines have become as radon was 20 years ago – today’s hot button for home buyers. In some boroughs (Mt Lebanon, for example) the borough now requires that before a home seller can transfer ownership, the sewer line must be scoped and must be without issues. Here in the Sewickley area, we do not have any boroughs imposing any such requirement on home sellers, but many buyers today do have a scope performed of the sewer line as part of their home inspection. And yes, if issues are discovered, they do expect the seller to remedy them. If a sewer line needs to be replaced, the cost will likely be between $5,000 and $10,000.
Sewer lines are not something we think about on a daily basis. As long as we don’t have back-ups, we assume that all is well with the line. But this is not necessarily the case. With older homes, sewer lines were made of terracotta pipe and this can break easily and can also be easily infiltrated by tree roots. If you live in an older home and haven’t replaced your sewer line, there is a good chance you have some issues.
Paying for a sewer camera test is not anyone’s idea of a good time, but if you are contemplating a sale of your home, it is probably a smart, pro-active thing to do. If you discover a problem in advance, there may be some cost-effective options for you to solve the problem without a full replacement of the line. Sewer lines can often by lined with a plastic liner. Tree roots can often by removed by hydrojetting. If you wait for a buyer to perform the test, you may get stuck with a full new line — the buyer might not accept one of the compromise options. So its best to explore the sewer line now, before it becomes an issue, and make any needed corrections.
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by Kathe Barge | Feb 5, 2019 | Blog, Pittsburgh, Real Estate, Sewickley
The polar vortex has left us wondering if there is anything we should be doing to our home to help it survive these cold snaps?
Last week’s incredibly low temperatures left many homeowners in the region with unexpected frozen pipes. It seems in Pittsburgh we may not build with as much attention to cold air defense as they do in historically colder regions of our country, and these unusually low temperatures catch us off guard. As we rebound a bit from the extreme cold, however, it is a great time to think about how your home responds to super cold temperatures. If enough cold leaks in to freeze pipes when we are at single digit temperatures, chances are you are spending a lot of money heating and cooling the great outdoors year round! A quick energy audit might save you hundreds of dollars in energy bills.
A really cold day is a great time to canvas your home for air infiltration – there is no easier time to find your leaky areas then when cold air is coming into a really warm space. Caulk cracks around windows and doors to eliminate drafts. Add weather stripping to doors and windows, and gaskets to plugs and switches on outside walls. Be sure to check your fireplaces if you live in an old home – decorative fireplaces can be a direct vent out for all of your heat and may require a cap or some insulation if they are never used (I personally love the spring-loaded top-down dampers – they are super easy to use and keep you air tight when your fireplace is not in use).
If your home’s windows are still single pane, replacing them with a good quality double pane window will also reduce your bills, and assuming you choose a better window (wood clad interior), greatly enhance the value of your home. At a minimum make sure you have storm windows in place.
There are several other things you can do to prevent cold weather damage to your home. Keep your furnace filters clean so that your furnace operates efficiently and can keep your house up to temperature. Clean your gutters to avoid ice dams that can cause water to infiltrate and damage the interior of your home. Make sure all of your water supply pipes are wrapped to help prevent freezing, particularly in colder areas of your home, such as pipes that run through the garage and unheated portions of the basement or crawlspace. And if we do hit single digit temperatures again, don’t forget to leave the water dripping in the sink at night to prevent water from freezing while sitting in your pipes and open cabinet doors under sinks to keep the warmth of your rooms heating the supply lines! Enjoy the warmer weather this week – I won’t last forever!
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by Kathe Barge | Jan 30, 2019 | Blog, Buyers, Listings, Market Trends, Mortgage, Pittsburgh, Real Estate, Sewickley
We’ve been thinking about starting our search for a new home but were wondering if we should wait until more homes come on the market this spring?
The spring market is here (although with the forecasted low temps for this week it may slow things down a bit)! Buyers are definitely buying right now, so if you think a move is in your future, despite the cold temperatures, the time to get started is now! We have seen homes that have been sitting for months go under agreement in the past couple of weeks, some with multiple offers, and our inventory is dwindling. We still have many nice options available for you to consider, and this is a far better time to buy than March, April or May.
Why, you may wonder? We have such a severe inventory shortage with lines and lines of buyers waiting for homes to come on the market. Many homes are selling in just a couple of days, before many buyers have a chance to get out and take a look. As we head into spring this will only get worse. While none of us have crystal balls, there does not appear to be an avalanche of inventory coming on the market in the coming weeks. I expect by March 1st the bidding wars will begin in earnest for well-conditioned, well-priced homes. (As a side note, even with the inventory shortage that we have now had for well over a year, this is Pittsburgh and not California – buyers still exercise a healthy dose of common sense in making their buying choices and don’t tend to overpay – it is still important to price based on historic sales and not exceed recommended pricing by sizeable amounts). If you don’t want to end up in a bidding war, where there can only be one winner and it may not be you, shop now and avoid the crowd! You may very well get a better deal than you could on the same house in another month!
In doing so, be sure to follow the advice passed on in prior columns (you can refresh your memory on my blog where these columns are posted each week –see www.AskKathe.com). Be SURE that you are pre-approved so that when you are ready to buy, you don’t have to waste precious time with this necessary step. When you do this, be sure your credit is good or clean up any issues and reestablish good credit. Give me a call so we can get you set up to be notified of all new listings immediately! And if you might consider selling your home, call me today! We have lines and lines of buyer prospects for your home!
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by Kathe Barge | Jan 23, 2019 | Blog, Buyers, Mortgage, Real Estate
I know you don’t have a crystal ball, but what do you think about mortgage rates right now?
The short answer: I think they will only go up! We just had a slight drop in the rates this past week, but that is not expected to hold. If you are considering buying, now is definitely the very best time to take out a loan – by next month rates could have bounced back up again! There is really only one problem I see with this otherwise sage advice – inventory is very limited right now! You may not find anything that you want to buy!
The good news is we do have a new mortgage product that will allow you to lock the rate for 60 days, even if you haven’t found a home! The process is quite simple. The loan application is processed just like if you had found a home – you make full application and turn in your paperwork. You then have 30 days to get a home under agreement and the remaining 30 days to close. For those of you who are committed to buying in the short term, this is a very good option to guarantee you the lower rate while still giving you time to shop. If you don’t find a home within 30 days, you do lose the rate lock but you would have still completed the paperwork for your future loan application!
Prospective sellers, lower rates are good news for you too! Buyers can afford more when rates are lower and home prices therefore tend to be a little higher. We are officially in the long-awaited spring market, rates have dropped a bit AND we have a scarcity of inventory – the perfect trifecta if you are contemplating a sale! Give me a call and we can develop a strategy to maximize your return in this favorable climate!
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by Kathe Barge | Jan 15, 2019 | Blog, Buyers, Mortgage, Real Estate
We are interested in viewing homes but have been told that before doing so, we need to provide a pre-approval letter or proof of funds letter. Is this really necessary?
Getting yourself pre-approved to buy before you start viewing homes is an excellent idea. You will have to have a pre-approval letter to submit an offer (sellers are going to want assurances from an independent third party that you can afford the home before they take their home off the active market to sell to you). And you certainly don’t want to start looking at homes that you think you can afford, or that you were told you could afford last year, before interest rates increased, only to be disappointed to find out that the home you love is outside your price range. Getting a pre-approval upfront is the most sensible approach – in this hot market, you could easily lose out on a home while you wait for a lender to pull your information together and get you the letter. It is best to get it done up front.
Necessary? That depends on the agent you are working with and the sellers of the homes you are viewing. Some agents simply will not put a buyer in their car until they have completed the pre-approval process. On reflection, this makes sense. Realtors are one of the only professions that don’t charge for their time as it is expended – they are paid for their time only when (and if) you actually close on a property. Getting pre-approved upfront shows that you are serious about buying a home and not just out for a house tour! Some sellers also require pre-approvals be provided before they will allow their homes to be shown. As you might imagine, there are some homes that many people would like to see, just for fun, such as very expensive homes or homes of celebrities/ sports stars. However, selling a home is not about providing entertainment to the general public. One would hope that buyers would understand that sellers do not want to take the time to prepare for a showing to a buyer who is just out for fun – and hence, for those homes that might be a curiosity to many, it is important for sellers to require a pre-approval in advance.
If you are serious about a move, then financing, whether through a loan or with cash you have saved, is a necessary part of the buying process. My best advice is to go ahead and line up your financial ducks before you start the home search process. If you need help finding an excellent lender, give me a call!
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by Kathe Barge | Jan 8, 2019 | Blog, Buyers, Home Staging, Inspections, Listings, Market Trends, Property Updates, Real Estate
We last updated our home twenty years ago and are now ready to downsize. Does it make sense to put it on the market at a lower price or do we have to make updates before we list?
You absolutely do not need to update your home before you list! I’m sure that comes as a relief to you. However, if the last significant updates you made were twenty years ago, you must price accordingly. Even if your bath tiles are white, for example, and not a turn off, the size and style of tiles has changed in two decades and the baths, although neutral, will feel dated to buyers. One of the biggest mistakes sellers make is to note what their neighbor’s home sold for and price theirs accordingly. If the neighbor had new baths (as opposed to neutral baths) or a new kitchen, or new paint colors… they will get significantly more money for their home. The key to selling with no updates is to get a likely value in “as is” condition from a local expert – I can help you with that! It is important to be clear when pricing, however, what you intend to do before listing – some sellers have projects planned but not completed and that would be important to take into account. As long as you price your home right, your home will sell without updates.
Before deciding to list “as is,” however, it is a good idea to consider what the cost of recommended updates would be and what they might yield you if you make the investment. Usually, when updates are made right before a sale and are in line with current design preferences, your home will sell faster and the higher price you receive will be far greater than the cost of the updates. If this is something you would like to consider, I would be happy to meet with you to discuss what you might update and how the updates might increase your value. You could then make an informed decision about whether or not to list “as is” or update.
In the end, you may decide that you value the simplicity of an “as is” listing and the increased price realized is not worth your time and the stress of a project. Even in that case, it’s a good idea to still stage the home for sale by decluttering and giving it a good scrub down (including windows and carpets). Homes that are clutter free and have been recently deep cleaned will also sell faster and yield a higher sales price, even if they are not as updated as buyers might prefer.
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by Kathe Barge | Jan 3, 2019 | Blog, Buyers, Contracts, Listings, Market Trends, Mortgage, Real Estate, Sellers
It’s a new year and we’re ready for a new home! What should we do first?
Well, you are asking a Realtor that question, so the answer is probably expected! The first thing you should do is call me! Once you have done that, here is a look at what comes next! First, we will meet and determine the likely value of your home in the current market. The market is quite fluid and values move up and down depending on supply. Currently we have had very low inventory for an extended period of time and buyers are getting very frustrated, so it is possible that we may see an uptick in values again this spring. When we meet we will also review all of the many ways I will be marketing your home and the timetable for rolling out the marketing to optimize your result.
Once we set a timetable that works for you, you will want to spend some time “staging” your home. At the most fundamental level, this would involve you “de-cluttering” your home. It’s amazing how quickly we will our closets, basements and attics! Movers are not cheap – you do not want to move more than you know you will want to keep. So now is the ideal time to start the clean-out. In fact, we sometimes have closings as quickly as 3 weeks after an offer is presented, so it is best to assume that you will not have much time to pack later and do the clean-out up-front. This will also help your home show off its spaciousness and storage capabilities! If you are saving things for others (such as the pile of furniture I have stored in my basement for my adult children who I am sure are going to want my 30 year old furnishings someday!), then it would be advisable to find an off-site storage facility and move those items from your home (or more realistically, I would be happy to connect you to charities to come pick them up and give you a tax deduction in exchange – the reality is that those we save for probably really don’t want our stuff anyhow!) If this all seems incredibly overwhelming to you (and you’re thinking you would rather stay put than face the inevitable clean out), I would be happy to connect you to a home organizer that can take on as little or as much as you don’t want to do!
Once you feel you are “de-cluttered,” the next step toward selling your home would be to determine whether any repairs or improvements are needed or recommended. I am happy to walk through your home with you in advance of your listing date and discuss what you might consider addressing and its likely impact on your bottom line. Not ever seller wants to make repairs and improvements and ultimately that choice is yours, but the market data I will provide to you will help you decide whether its worth it to you to make the additional investment in your home. If repairs are not possible, we will work on using the disclosure to make sure you are sharing the items upfront with the buyer and pricing accordingly. This will protect you later from costly repairs if the inspector is the one to raise the issues.
It’s a lot to do, but together we can make your 2019 real estate goals a reality!
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by Kathe Barge | Dec 27, 2018 | Blog, Buyers, Listings, Market Trends, Pittsburgh, Real Estate, Sellers, Sewickley
Now that Christmas is behind us, we are thinking about making a housing change in 2019. What is the optimal timing?
The strength of our early spring market is always weather dependent here in sunny Pittsburgh! In a “normal” winter our spring market starts in earnest in mid-January. Certainly by February you would want your home on the market if you are seeking a spring sale. Our early spring buyers (January, February and March) tend to be our best, especially following a period of such unheard of inventory lows. There is currently a long line of buyers eagerly waiting for new market introductions – the competition will likely be great in the early months of our new year, maybe even driving in more of the bidding wars we saw this past fall.
Of course, the interest rates have climbed steadily throughout 2018 and that may put a bit of a damper on rising prices in 2019 – but if inventory remains as low as it has been in 2018, the impact should be minimal. And if we have a rough winter, as some predict, it may slow the start of our spring market. But of course, we won’t know that until we are in the thick of it.
All things considered, my best advice to you is to give me a call today so that we can design a strategy that is best for your family and your personal goals. Being ready to go in the spring market as soon as it starts to show signs of life, be it January, February or March, will inure to your benefit!
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by Kathe Barge | Dec 11, 2018 | Blog, Home Staging, Market Trends, Sellers
The holidays are here and our home is on the market – any tips for selling during the holidays?
The holidays can be a challenging time to sell your home – the number of people looking for a home is much lower than almost any other time of year. But those who do look around the holidays are usually very serious buyers and so it is worth making sure that your home presents as well as possible.
Start with a good fall cleanup! It’s definitely time to put your yard to bed! Make sure your yard is well raked and all dead plants removed. Curb appeal is even more important in colder months when the landscaping is less lush and appealing to a buyer. Make sure gutters are cleaned and everything outside is looking crisp.
Make sure you keep your thermostat up for showings – walking into a cold house for a showing can be a real turn-off. Warmer homes will cause buyers to linger when its cold outside – which will allow them time to admire your home’s wonderful amenities. And of course, with as gray as Pittsburgh can be in the winter, be sure all of your lights are on for showings (and that you have working lightbulbs in all of the lights). Its also a good idea to put a few lights on timers if you are away so the home always looks cheerful from the street.
Holiday decorations always add cheer to a home, but be careful not to overdo it! Keep your decorations this year on the more minimal side, and try to avoid religious themed decorations. Be sure that you de-clutter BEFORE you decorate and also be sure that your decorations coordinate well with your décor scheme. And of course, avoid large inflatables in your yard!
Finally, don’t forget that if it snows, you must keep your driveway and walk clear of snow so that the buyers can easily get inside!
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by Kathe Barge | Dec 5, 2018 | Blog, Buyers, Marketing, Pittsburgh, Real Estate, Sellers
We’re hoping to move in the New Year and are beginning our search online – is there anything we should keep in mind?
The majority of buyers will shop online during their search for a new home, and many will actually begin their search there, like yourselves! The real estate industry has come such a long way in the 20 years since I started in this business. Back in what feels like a different century (perhaps because it was), we used bulky multilist books that were delivered every other week to find homes for our clients. Now you can access the entire nation’s real estate inventory on national websites such as realtor.com in the comfort of your own home!
The internet has made it incredibly easy for buyers to do some preliminary research for a new home. It does have its limitations, however, which is where your expert real estate agent can fill in the gaps.
Online listings, if managed well by the listing agent, will always look amazing. Wide-angle lenses and professional photographers are employed, as well as photo-editing software and virtual staging, to make a home look as attractive as possible online. It’s worth keeping in mind that pictures may lie – be careful not to screen out potential homes just because the photos aren’t fabulous – rely instead on the wisdom of your agent. If she has listened to your feedback and is familiar with the inventory, she will be your best screen for which homes are better than they appear, and which may be worse.
Online listings also don’t give you much of a sense of location. While google earth may help with some of this, until you actually drive by a property, you may not be able to tell physical lot characteristics that may be a positive or a negative to you. Online listings also can do little to convey a sense of neighborhood or community. Again, that is where your real estate professional should be able to fill in the picture for you.
Finally, online listings are only as good as the agent who enters the data – there may be information about the property that is not entered into the MLS, either by agent oversight or by simple lack of space, that might make a home more desirable to you. Information such as camera security systems, water softener and purification systems and high-efficiency mechanicals may have real value to you and is rarely listed online.
Online shopping is a great way to familiarize yourself with the market, but connecting with a Realtor who is an expert in the area of interest to you is your best course of action once your curiosity grows more serious.
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by Kathe Barge | Nov 26, 2018 | Blog, Buyers, Contracts, For Sale By Owner, Mortgage, Real Estate, Sellers
We were approached by someone who is interested in buying our home. The buyer has provided us with an unsigned sales agreement as their offer. They are offering 1.5% of the purchase price as their hand money and have not included proof of funds (it is a cash offer). Are we wasting our time with these buyers?
The very short answer is yes! For starters, to be a valid offer, it must be in writing and signed. Without a signed writing, you have absolutely nothing to bind the buyer should you decide to proceed. What you received is not an offer at all and you should not give it serious consideration until the paperwork is signed by the buyer. If there are no agents involved, the buyer needs to hire an attorney to prepare an offer and you will need to hire your own attorney to review it.
Hand money equal to 1.5% of the offer may or may not be sufficient depending on the individual circumstances. Sometimes that is all a buyer can afford. However, this buyer is supposedly paying cash so there should be no problem with them providing a more substantial deposit. Look for a minimum of 5% in this type of scenario. The hand money is your consolation prize should the buyer decide not to close after all contingencies have been satisfied – if you have moved out, you will need at least that much to compensate you for all of your moving costs.
As far as proof of funds, I would recommend that you not engage in any substantive negotiations until the buyer has proven that they do have the cash available to close. Talk is cheap, but if they really do have the cash, they will have no problem producing copies of statements showing the cash or a letter from their banker that they have the needed funds.
Your questions address just a few of the hundreds of complexities involved in getting a home sold and highlight why its really important to engage a full-time real estate expert when buying or selling a home. Selling your home yourself may sound like a great idea in the abstract but the “for sale by owner” sellers that I have spoken to have regretted not engaging a Realtor to represent them as selling a home is far more complicated than it looks and most ended up feeling like they got the short end of the stick at the end of the day!
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by Kathe Barge | Nov 20, 2018 | Blog, Buyers, Contracts, Market Trends, Mortgage, Real Estate, Sewickley
This time of year we all take the time to give thanks for all of the wonderful things in our lives. I have much to be thankful for. The obvious chart toppers are good health, wonderful family and friends, and a warm home to come home to each day (which I particularly appreciate on these chilly November days!) My gratitude extends much further, however, to all of the people I work with every day that make real estate transactions so seamless for my clients – from the best mortgage brokers and closers to incredible home inspectors and handymen, contractors, electricians, roofers… that I can count on to give their best to my clients. With them by my side (or on speed dial) I have been able to provide the highest level of service to those with whom I work, and for that I am grateful.
My gratitude, however, extends even further – to forces I can’t control. We have been very fortunate to have historically low interest rates for a very long period of time (and even though they have been inching up, they are still comparatively quite low), and a taxing structure that has favored home ownership as an investment. I am always reminded that Uncle Sam, through the mortgage interest deduction, effectively pays a portion of my mortgage every month. Through the system as structured, we are not only able to own homes for less than we could pay to rent them, but at the same time we are building equity which will be there for us when we retire and are seeking that nest egg to purchase our retirement home with.
Are you taking advantage of all that is available to you? It’s hard to imagine that there will ever be a better time to begin or increase the size of your nest egg in real estate. If you’re ready to downsize and cash in your nest egg, it’s an absolutely ideal time – inventory is low, interest rates are still on the historically low side and we have buyers waiting in line for Sewickley homes. The spring market starts in January – the time to sell is now! Enjoy your holiday, and give thanks for all that is wonderful in your life!
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by Kathe Barge | Nov 5, 2018 | Blog, Buyers, Listings, Pittsburgh, Real Estate, Sellers, Sewickley
We need to replace appliances – any recommendations?
When choosing new appliances, my first recommendation is that you choose Energy Star certified appliances for several reasons. First – check with your electric supplier before you shop, but rebates are available from many electric companies (Duquesne Light is one) when you purchase designated Energy Star appliances. Second – you will save money every month on your electric bills. Third – and most important from my perspective – younger buyers tend to be concerned about energy efficiency and often ask for utility bill information on homes they are considering. Energy efficient appliances are a selling point and will enhance the value of your home (don’t forget to point that out when you list!) As more young buyers enter our buying market (and they are buying across all price ranges), this could be an important differentiator for your home.
I still recommend that you choose stainless appliances. While there are many options out there including some pretty interesting colors, I still see buyers responding most favorably to stainless. Sure, they might be harder to care for (you will need a can of stainless polish in your cleaning cupboard), but the look is still quite appealing and “professional.” There is, however, one circumstance when I do not recommend stainless for replacement appliances. If your kitchen has another color appliances (white or black, for example) I do not recommend replacing only one appliance with stainless. If there is one thing buyers uniformly dislike it is mismatched appliances (in color – mixing brands is fine). So if you currently have white appliances and don’t think you will be replacing the other appliances soon, stick with white. Even though white (or black) does not have the same appeal that stainless does, a kitchen with two white (or black) appliances and one stainless is the least appealing of all!
Finally, it is worth noting that it is more the look than the brand that is important to buyers. As much as we all like to think the high end brands are important to people its not what I am seeing on the selling side. If the appliance has a good look, buyers are not stopping to ask what the brand name is! So choose the brand that appeals to you – be it a budget decision or a features decision – and enjoy it while you are still in the home!
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