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 | Aug 26, 2022 | Buyers, Buying Conditions, Contracts, For Sale By Owner, Helpful Tips, Home Improvements, Inspections, Listings, Property Updates, Property Value, Real Estate, Sellers, Sellers-Contracts
We find the inspection process confusing – do we have to fix everything in the inspection report before we close on 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.
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by Kathe Barge | Aug 15, 2022 | Buyers, Buying Conditions, Helpful Tips, Listings, Market Trends, Marketing, Property Updates, Property Value, Real Estate
We’re hoping to move in 2023 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 internet has made it incredibly easy for buyers to do preliminary research for a new home. It does have its limitations, however, which is where your expert real estate advisor 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 advisor 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. Thus, while online is a great place to start, it’s a great idea to choose your real estate advisor early (and you can also research qualifications on his/her individual website)!
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by Kathe Barge | Aug 8, 2022 | Buyers, Buying Conditions, Design, Downsizing, Helpful Tips, Home Improvements, Home Staging, Inspections, Market Trends, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
We aren’t ready to move but want to update our home – what are the best choices for paint colors and flooring changes, assuming we may want to move in the next few years?
New paint colors must harmonize with the rest of your home, unless you plan to repaint the entire interior of your home, so any suggestions need to be taken in the context of what else is going on inside your home. My best suggestion for a currently fairly timeless paint color is Benjamin Moore’s Edgecomb Gray.
This color blends with virtually every shade of white that might be on your trim and nearly every color flooring that might be in your home. It is really more of a greige than a gray and, like a chameleon, changes color a bit depending on what is in the space and what kind of light is filtering in through the windows. However, if your home is a palette if golds, for example, this color might not be the right choice! Trending now is white on white (with trim and walls painted the same or nearly the same shade of white), but this is a design style that is best incorporated throughout the entire home, and not just a singular room. If you have wallpaper in your space, then it’s a very good investment to have it removed (do not paint over it, no matter what the painter tells you) and painted in a color that coordinates with your design aesthetic. Wallpaper overall remains a difficult sell.
As to flooring, real wood floors remain the best investment you can make. They are timeless and easy to refinish if they become worn or if the buyer prefers a different color. I highly recommend choosing a medium tone brown, not too yellow, red or dark and preferably in ¾” thickness. If engineered wood floors are what your budget requires, choose one that the manufacturer indicates can be refinished at least once, and keep a few extra pieces on hand in case you damage any through normal wear and tear. Bamboo is another great option and there are on-line suppliers that offer a variety of shades in ¾” planks – it is very resilient, environmentally friendly and installed can look like hardwood. I do not recommend that you choose the latest trend, “LVL” (luxury vinyl flooring), for anything beyond the basement level of your home. These are plastic floors, and if your home will likely sell for over $500,000, these floors will not be appreciated on the main or upper levels. Finally, carpet in a neutral tone plush (no berber, no mixed colors) is acceptable as long as they are clean and stain free. If you stain them during the remaining time in your home, you would need to replace them again before you sell your home.
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by Kathe Barge | Aug 1, 2022 | Buyers, Helpful Tips, Home Staging, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
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!
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by Kathe Barge | Jul 4, 2022 | Buyers, Buying Conditions, Helpful Tips, Home Staging, Listings, Market Trends, Marketing, Property Updates, Sellers
Is it necessary to neutralize our home to sell it and what exactly 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 harvest beige 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 litterboxes 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 smells fresh. Whatever the source of odors, remove them — your home should be odor free.
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 | Jun 23, 2022 | Downsizing, Helpful Tips, Interest Rates, Listings, Market Trends, Mortgage, Property Updates, Property Value, Real Estate, Schools, Sellers, Selling Conditions
We are thinking of downsizing, but can’t find a place to go. Any ideas on how to approach this transition?
If you’ve been sitting on the sidelines this spring waiting for your downsizer to come on the market, you may be feeling disappointed right now. We continue to have an extreme lack of inventory, and have for years in this particular category. Here are some options for those of you who want to downsize to consider:
If you are looking for patio homes, we have a limited inventory in Sewickley, with Elmhurst (one available) and Sewickley Ridge (nothing available). However, we do have nearby communities that have wonderful patio homes including options off Nicholson Road in Franklin Park and Ohio Twp, all still in “15143” including Diamond Run, The Fields of Nicholson and Traditions Sewickley Ridge. We also have townhomes in Sewickley Village (one currently available), some with elevators, townhomes in Sewickley Heights manor, townhomes in Moon overlooking Sewickley and townhomes in Ohio township (still “15143”). If you are looking for that illusive Village ranch, you may be waiting a while and looking at a large project to bring it up to modern standards, or paying a high dollar amount, as some of our smallest but well done homes are selling in the 700,000s. We often have ranch opportunities outside the Village however. We also have a nice selection of condos. If you are hoping to spend a lot of your time traveling, while a condo may seem on the small side at first, it may be all you need if you won’t be in Sewickley all year. For those with larger budgets, the new condos on Centennial are a very nice option. 316 Beaver Street and the Linden have undergone a smart remodels and offers stylish in-town condos. The Brittany and Normandy provide additional options.
Perhaps you would consider a new adventure for your downsize? We have had many local families move into the city, with some cool options to choose from. If you are really looking to shake up your life, and don’t have a need for our school district, moving into the city might be a fun avenue to explore.
Early fall can be a very strong market. We are encouraging homeowners who are considering a move to list this fall! If your buyer is out there and we can’t find your ideal downsizer, there are the options of a delayed closing to give you more time, as well as an interim rental. Give me a call if you would like to explore this further!
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by Kathe Barge | Jun 23, 2022 | Helpful Tips, Market Trends, Property Updates, Property Value
After renovating our home, all that remains is our basement. How important is it (or worth it) to clean this space up and how far should we go? Would I get the return on my money?
A basement often reveals more about a home than any other part of your home. It is therefore, more important than you might think that your basement present well. Most of what needs to be done to basements doesn’t need to be very expensive. Your basement should be easy to access. Whether you are staying or selling, excess clutter is not your friend –if you have a damp basement, it will harbor mold. Clean out now while the weather is nice! Your basement must be dry. If your basement just feels humid, then you must run a dehumidifier 24/7. If you have ever had water seepage in your basement, you will need to solve the problem. The quickest, easiest and most common fix is to make sure your gutters are kept clean, your downspouts are properly diverted at least 3 feet away from your foundation and that when it rains, water does not drain toward your home (in which case you would need to add soil to change the slope around your home). If that doesn’t work, you will need to invest in a professional waterproofing company.
Your basement should be light and bright – adding a few extra bulbs to the ceiling is something easily done inexpensively that will dramatically improve the feel of your basement. A fresh coat of paint on the floor will also help and is cheap to do (use porch floor paint). Glass block windows are a good investment – they are not very expensive and they add extra security and protection against termites and water intrusion to your home (I recommend including a vent block in each window so you still have the ability to circulate some air). Cleaning up old and unused wiring and plumbing is also a good idea if you have a handyman who can do it cheaply for you – it will certainly make inspections go more smoothly.
Getting your basement up to basic safety and code standards will also save you on inspections down the road. You should have a smoke detector near the furnace, any plugs should be GFCI outlets and if your basement connects to the garage, the door connecting them should be a steel door. Some of the more expensive fixes are unlikely to yield much of a return. Some people choose to spray their ceilings black – it’s a fun effect but unless the basement is being finished, it is unlikely to yield dividends. Others choose to parge their walls – this actually makes a sandstone foundation look much better, but unless you can do it yourself, it can be expensive.
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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 | Mar 30, 2022 | Buyers, Buying Conditions, Contracts, Helpful Tips, Inspections, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers
The market is so hot right now and we aren’t having any luck getting a home – should we waive home inspections?
You are correct –the market under $1million is very fast paced right now, and in many instances, the winning bidder has waived home inspections. That does seem to be what it may take to “win” right now but I cannot recommend that you make that choice. Now several months into the “waive inspections” craze we are starting to hear stories about the expected fallout from this hasty decision.
From the seller’s perspective, I highly recommend that you have your home pre-inspected and repair or disclose the relevant items. While an inspection might cost you upwards of $500, it is money well spent toward a smooth closing. If you have pre-inspected your home and provide the report to prospective buyers, you are doing your part to make sure your buyer is well-informed. In the absence of a pre-inspection, I do not recommend that you accept an offer from a buyer who has not inspected your home. I have started hearing from home inspectors that disgruntled buyers are seeking post closing inspections to find problematic items and sue the sellers for failure to disclose. You don’t want that to be you. If you have not pre-inspected, we can discuss strategies to allow a buyer’s inspection and still protect you.
From a buyer’s perspective, as we all imagined would happen, the post-closing stories are starting to mount about buyers who purchased without an inspection and are now having all sorts of forseeable issues – roofs leaking, furnaces failing… If you are going to make this risky choice, you need to do so knowing that you will be assuming the risk of potentially tens of thousands of dollars of issues The contract specifically states that your inspection is your opportunity to find issues – if you waive that, you will be fighting an uphill battle to recover against anyone. Before you make an offer without an inspection contingency, you really do need to ask yourself if you are prepared to absorb those costs!
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by Kathe Barge | Feb 2, 2022 | Buyers, Buying Conditions, Inspections, Listings, 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 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.
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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 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 | 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 30, 2021 | Buyers, Buying Conditions, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
We have read that the real estate market is beginning to cool down – is that the case locally?
We have been in an incredible sellers market for the past six months now like nothing we have ever seen. In prior articles I have written about the why: more millennials entering the home buying market (and at higher prices than you might guess for first time home buyers), boomers downsizing at a later and later age (whether advisable to delay or not), and new construction starts never having rebounded from 2008 are among the many reasons. And while these factors have not changed overnight, it’s expected that the market will eventually be able to meet the demand and it is in fact starting to do so.
What we are seeing now is still multiple offer situations in the moderately priced and lower priced housing brackets, but rather than receiving 8 to 10 offers, sellers are typically receiving three or four offers and prices may still exceed the asking price but may not be quite as high as they were in May. Even with three or four offers, buyers are still having to compete strongly for the homes they want, and many are resorting to tactics such as waiving appraisal contingencies, mortgage contingencies and in some cases (while probably inadvisable if the home hasn’t been pre-inspected), inspection contingencies. In the million dollar market, we have started to clear some of our inventory but I would not describe the buying pool as “robust.” And in the ultra-high end market, we are seeing almost to no serious buyer traffic right now. In these higher-end brackets, buyers do not have the same urgency that we see in the middle and lower-end brackets. They remain very picky about what they are looking for in a home and if the home does not meet their exact expectations, they will just sit on the sidelines and wait for the perfect match for them.
So yes, I would say that the housing market has cooled since May, as we all expected it would. However, if you are a home seller planning to introduce a middle or lower-end home to our market this fall, I still anticipate that your home will be well received provided that you take the time to condition it well for the market (and, I highly recommend, pre-inspect your home). If you have a higher dash and home to sell, then it’s imperative to develop a plan and a longer-term strategy to maximize your return – it is possible to still reap an excellent price at all levels of our market. Reach out and I am happy to meet with you to discuss a strategic plan, at any price point!
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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 | May 25, 2021 | Buying Conditions, Home Staging, Listings, Market Trends, Marketing, Property Updates, Real Estate, Sellers
We are hoping to put our home on the market soon. Any ideas for quick fixes that will help sell it fast?
The easiest and least expensive thing to do when getting your home ready to put on the market is to start packing and decluttering your space. You’re going to have to do this anyhow in order to move and so you might as well get ahead of the game and start before your home goes on the market. Take a few minutes to consider whether you actually want to pay to move the items you are boxing up. If there our items you haven’t used in years (or maybe haven’t even taken out of the box since your last move), this might be a great time to donate them to a local charity. Otherwise, create more space by packing items that do not otherwise add to the “magazine appeal” of your home. If you have room in the basement or garage to make a small neatly piled stack of these boxes, that is OK. If not, or if the stack gets too large, I recommend getting an offsite storage facility. Be sure to put away any particular personal items. These would include religious items, political items and most family pictures.
Once you have the cluttered (and be sure to leave a few items for decorative interest – it should not look like a stripped down shell of a home), take the time to do a deep clean of your home. Even if you have a weekly cleaning, the chances are there are many areas they just don’t have time to clean every week, such as HVAC return air vent covers, bathroom vent fan covers, baseboards, lighting fixtures… Online there are many resources for what not to miss in a deep-clean and this is a great place to start!
This time of year, another inexpensive yet wonderful way to increase the appeal of your home is to add annuals to your landscaping. Pots of well-watered, beautiful and colorful flowers go a long way in making a home feel inviting. Be sure to keep your lawn well mowed, weeds out of your landscaping beds, beds mulched and shrubs nicely trimmed. The outside of your home is visible 24/7 and so it’s important to always keep it looking great. A fresh coat of paint on the front door and surrounding trim is also some thing you will not want to overlook. This is a very simple item to address and yet it is the first thing a buyer sees when they approach your home. It’s very easy for front doors to get tired looking, so take a look at yours and make sure the paint is fresh.
These simple and inexpensive steps will go a long way to adding value to your home!
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by Kathe Barge | Apr 14, 2021 | Buyers, Buying Conditions, Listings, Market Trends, Property Updates, Real Estate, Sellers, Selling Conditions
We continue to look at homes on the Howard Hanna website and have noticed there doesn’t seem to be many homes coming on the market. Just wondering if we’ve missed the peak of the spring real estate season? Have you found that there are typically more houses coming on the market in early summer as school ends?
Historically, our market peaks in April, so if you have been watching our market all spring, you would have noticed the surge in April and the much more modest introductions in May. We will continue to have properties come on the market during the summer months, but fewer than we see in the spring months. The late summer is not a typical time to see new introductions, but they will pick back up after Labor Day.
However, if you are one of the many buyers sitting and waiting for their perfect Village home, this may be a good time to reevaluate your priorities. Inventory is at an all time low and if your goal is to move into our community, you may need to start making compromises. With our continued Village development and all of the exciting new amenities as well as the top-ranked school district, Sewickley has become an extremely popular community choice for buyers. Homes have been selling like hotcakes! Not because they are perfect homes but because buyers are making compromises on their wish list and choosing homes that will work despite their imperfections. Some might need updates. Some might not have the desired lot size or configuration. Some might not have enough garages or even a garage. Some might have too few bathrooms or a less than typical bedroom configuration. Some might be in a noisier location. Some might check every box but be a slight drive “up the hill” where we still have a wonderful selection of fantastic homes available. If Sewickley is your dream, it may be time to start thinking about how to work with one of the many wonderful homes still available rather than sitting on the sidelines as values continue to increase and you get even less for more.
Considering a move outside Sewickley? It is true that the North Hills have a larger selection of inventory due to the larger population base, but the prices are no lower and they are struggling with an equally tight inventory.
One final thought: If you are a seller and you have been sitting on the fence about selling your home, now is the time to call me!
- We have a severe inventory shortage across many price ranges and many eager buyers.
- This spring market will yield your very best possible price.
- The fall market is much more typically a buyers market, so lets get your home on the market today!
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by Kathe Barge | Apr 5, 2021 | Buyers, Buying Conditions, Inspections, Market Trends, Property Updates, Real Estate, Selling Conditions
The market is very hot right now and we are having no luck winning a bidding war. Should we waive inspections?
It’s certainly true that waiving inspections will make your offer much stronger than a competing offer in which the buyer is inspecting the home. Most sellers would gladly choose an offer waiving inspections over one that is not. However, before you make such a bold choice, you do need to consider the consequences.
If the seller has pre-inspected the home, then you have a reasonably limited amount of exposure should you choose to buy without inspections. Most home inspectors are pretty thorough and so while there are always things that a home inspector misses, a pre-inspection should give you a good sense of what you are buying. After reviewing the report, if you feel that the report is thorough, it may be a reasonable risk to waive inspections, understanding that doing so may open you up to unanticipated expenses. However, this may be a way to help you win a home that is receiving multiple offers.
If the home has not been pre-inspected, then it’s quite risky to make an offer without planning to inspect the home. If you happen to be a contractor and you feel comfortable assessing a home on your own, that’s one thing. But if you don’t have any experience with contracting or any experience with being involved in the maintenance of your own current home such that you feel very comfortable assessing the conditions of homes, you may be poorly equipped to get a handle on the condition of the home you’re buying. You could be looking at tens of thousands of dollars of unexpected expenses, depending on the size of the home. This is something you would need to weigh in deciding whether or not that’s an acceptable risk to you in order to be the successful bidder. It’s not a course of action I would recommend, but you may decide it’s the only way you’re ultimately going to get the house you want. If that’s the case and you do move forward waving inspections, you do need to keep in mind that if you later find problems with the home, the only person responsible for taking care of the cost of related repairs is you – not the prior owner, and not the Realtors. So do proceed with caution!
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by Kathe Barge | Mar 9, 2021 | Buyers, Buying Conditions, Listings, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
Why don’t we see new inventory hitting the market – has spring not sprung?
The freeze is over and our real estate market should be opening with new introductions as I write. In fact, I have new introductions coming this week! That said, there is a glut of buyers looking for homes in our market across nearly every price range. We have been starved for inventory for quite a long time now. Forecasters are predicting that we will see greater mobility from baby boomers in the coming year, and that will undoubtedly bring more inventory into our market. However, it seems that natural fallout from the pandemic has included some potential sellers hunkering down and preferring to just stay put for the time being, and others who might be in homes that are probably too big for them at this stage of life appreciating, at least for now, the additional space that their larger home offers.
I expect this will be a very tight year for inventory because even though I suspect we will see introductions, the buyer competition is going to be fierce. To every potential seller out there I would note that if you are considering a move in the not too distant future, this particular market is one in which you could extract a premium, and I would be more than happy to meet with you to help you strategize how to take advantage of this unique blip in our market. We will ultimately see more inventory introduced and that will cause prices to level out again so this would be the ideal time to take advantage of premium prices generated by our lack of inventory. To those buyers out there sitting on the fence, I would suggest that there are some very nice homes currently on the market and this would be a great time to lock in one of those homes. If I had a crystal ball, I suspect it would tell you that we are not going to see an excessive amount of introductions in this spring market and homes that have been sitting on the market for longer periods of time will surprisingly end up with multiple offers. Why not buy one of those homes now and avoid the unpleasantness associated with a bidding war?
This is definitely a market in which strategic planning, whether as a buyer or a seller, is key. If a real estate move is in your future, I would be more than happy to meet with you confidentially to develop a plan for your success!
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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 | Jan 25, 2021 | Buyers, Buying Conditions, Contracts, Listings, Market Trends, Pittsburgh, Property Updates, Property Value, Real Estate, Schools, Sellers, Selling Conditions
Why does it seem like there are no new homes coming on the market!
Your perceptions are correct! We have less than one half of the homes we had on the market at this time last year. At the time of this writing, we have only 61 homes actively available in the Quaker Valley School District, with only 34 of those being priced at 1million or less! In 2020, we sold 252 homes in the Quaker Valley School District with 225 under 1million. I suspect the reason you are not seeing more inventory is because people who are willing to sell their homes have no where to go. Unless you are leaving the region or moving into a retirement community such as Masonic Village or Sherwood Oaks, you might be interested in taking advantage of this market that is yielding record prices but can’t figure out how to make it happen! If you are one of those potential sellers who has a plan to depart, give me a call so we can devise a strategic plan to drive in the best price and terms for you! Now is NOT too early — right now buyers are shopping for late spring/ early summer closings! Its been an exciting spring market so far — as you will see below, my first three spring opportunities sold the first day they were available and for top dollar! NOW is the time to join this exciting market!
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by Kathe Barge | Jan 14, 2021 | Buyers, Buying Conditions, Listings, Market Trends, Marketing, Pittsburgh, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions, Sewickley
We’ve been cooped up in our house for nearly a year now with this pandemic and are feeling like it’s time for a change. Your thoughts?
We are in the absolute best sellers market I have seen here in western PA in my 22 years in the business! We have less than one half of the inventory in our MLS right now than we had last year, which was also a historic low. Prices are rising faster than the algorithms that predict price can keep up with. This is fueled in part by historically low interest rates, which we do anticipate will hold through this selling season – but I would not count on 2.5% interest rates being the norm forever. Buyers are able to afford more with these low rates, which is supporting the increasing prices. We are also seeing an influx of coastal buyers – most of these people have a prior connection to our region – many of them are returning “home” to be closer to family. I honestly have lists and lists of buyers seeking a home for their families in our area. So YES! If the pandemic has caused you to reassess your home or your lifestyle, there is no better time to reach out to me than TODAY to discuss the possible sale of your home. Sadly, my crystal ball is out for service so I can’t predict 2022 or forward, but what I can tell you is that now is a great time to be a seller.
The big question is of course where are you going to go? If you have dreamed of moving to a warmer location, now is the time to dive deeper into that dream and make it a reality. If you want to move to be closer to your family in another city, also a great time to make that happen! If you are working in another city remotely and just sticking around Pittsburgh and waiting for the pandemic to end, now is the ideal time to pack up and make that move. If you own multiple homes and aren’t in the Pittsburgh region too often anymore, now is a great time to liquidate your Pittsburgh area housing investment and invest elsewhere. If however you aren’t leaving the area and you don’t own another home to move to (at least temporarily until the housing market changes courses and becomes a buyers market again – and yes, the market ebbs and flows – we will see another buyers market in the future), then we should chat about what options might work for you here in Pittsburgh! Please reach out to me and lets start a conversation about how I can help you achieve the highest possible price for your home and make your real estate dreams a reality!
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by Kathe Barge | Dec 8, 2020 | Buyers, Buying Conditions, Home Staging, Inspections, Listings, Market Trends, Marketing, Property Updates, Real Estate, Sellers, Selling Conditions
If our home is on the market, how long is it ok to keep our decorations up?
In this incredibly dark time of the year, and even more so in this difficult holiday season as we continue to muddle through this global pandemic, festive holiday décor certainly helps to brighten everyone’s day, so if your home is on the market, it is certainly a good idea to tastefully decorate for the holidays. This year might be the year to embrace an inflatable (maybe a large Santa for example) to bring a little extra levity to the neighborhood! Even if your home is vacant, a seasonal wreath on the front door is a nice touch to welcome guests. We have been unusually busy this fall, so presentation remains important, even when its cold and snowy outside.
Once we start 2021 (and yes, we are all quite eager to put an end to 2020), if your home is on the market, it is important to have your holiday decorations down and stored as quickly as possible, ideally by January 2nd! Our spring market should jump into high gear as soon as we hit mid-January. Buyers themselves will have put the holidays behind them and will enter the new year with a new sense of urgency to find their new home. Once the holiday celebrating has past, decorations quickly look tired, so take them down and store them for another year. If you enjoy door wreaths, that could remain as long as it is more “wintery” and less holiday.
And don’t forget my other wintertime showings tips – lights on for showings, and use the highest acceptable wattage. Keep walks and driveways free of snow and ice. If you’re not going to be out or too long, a fire in the fireplace is also a nice idea. Thermostat at a warm, cozy temperature (Buyers will not embrace a home if it feels chilly). Boot mats by the front door to save your floors.
Enjoy the holidays – stay warm and safe!
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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 13, 2020 | Buyers, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers, 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 of course, a warm home to come home to each day.
My gratitude extends much deeper, 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 I work with, 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 a taxing structure that still favors home ownership as an investment vehicle to some extent. 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 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 too 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!
2020 has been a year we would all love to forget, but before we say goodbye to 2020, even with all that has been so challenging this year, we have much to be thankful for this holiday season!
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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 | 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 | 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 | 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 | Oct 10, 2018 | Home Staging, Inspections, Listings, Market Trends, Pittsburgh, Property Updates, Real Estate, Sewickley
We have been searching for our new Sewickley home for about 9 months with no luck – there doesn’t seem to be much of a selection and we cant find our perfect home – any advice for a family of weary home lookers?
Sewickley is a small town which makes it a unique and wonderful place to live, but with it’s small town appeal comes a definitely smaller number of homes to begin with and yes, in some price brackets, inventory has been far tighter than it has been in the past. It is beginning to feel like Sewickley is such a great place to live that no one wants to move!
When we moved here 25 years ago from D.C., we had a long list of “must haves” that we searched the greater Pittsburgh area for. Our real estate agent showed us only one home in Sewickley – that’s all that was available in our price range at that time! It met very few of our must haves – it did not have a master bedroom, it did not have a two car garage, it did not have central A/C and it did not have a family room. But it did have tree lined streets and sidewalks to everywhere and that was our #1 criteria, so we bought the home despite all of its perceived shortcomings.
In the intervening years (and in the two Sewickley home purchases we have made since then), I have learned that if one wants to live in Sewickley, he or she will ultimately need to bend on the must haves a bit. Price will not help – no matter what the price point, there are simply no perfect homes. It is important to evaluate each home through a slightly different lens. Consider how close a possible home comes to meeting your needs. If it meets about 80% of your “hope to haves” and if you could change another 10% over time to be much closer to what you hope to have, with the remaining 10% being things you wish you could change but realistically cant and will have to learn to live with, then the home is likely a home run and one you should seriously consider buying. I call this the 80/10/10 rule – and I have observed that once buyers come to terms with this concept, they can finally find their place to call home. Those that hold out for “perfect” – looking for the home that meets 90%+ of their hope to haves – will find themselves sitting on the sidelines as one home after another sells – that needle in the haystack simply does not exist.
And so, for example, if you have found a great home with the space you need that is in terrific condition in a nice neighborhood and with a great yard, but you don’t love the kitchen and you think it is a bit too far from Starbucks, give it another look. 80% is likely a yes. The kitchen (10%) can be changed over time. And you can learn to adjust to the extra ½ mile to Starbucks – its still walkable! My best advice to you is to start looking at homes through this 80/10/10 lens – you may be surprised to find that “perfect enough” has been waiting for you all along!
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by Kathe Barge | May 1, 2018 | Blog, Home Staging, Inspections, Market Trends, Property Updates, Sellers
The information on Zillow is incorrect about our home. Should we address this?
Zillow is relied upon by millions of consumers for their real estate information and so it is important, if you plan to sell your home, that the information be correct. Incorrect information can lead to poor buying decisions on a buyer’s part and might also adversely impact your Zestimate. On their website, in the very fine print, Zillow itself admits that its Zestimate reliability in Pittsburgh is not particularly good, but most people don’t read the fine print. So before you list your home for sale, take the time to check it out with Zillow and correct the errors you see by clicking on the “Correct Home Facts” tab, setting up an account and submitting the requested error corrections. It is possible to dispute the Zestimate as well, so if you are listing your home for sale and the number is significantly lower than you anticipate it is worth, it may also be worth your time to do this before you list.
It is important, however, to be aware that whatever you post to Zillow stays there. As tempting as it might seem to try a “For Sale By Owner” to “save” the real estate commission (and I say this with emphasis because it is the buyer, and not the seller, who is paying the commission – if you are a FSBO they expect you to deduct the realtor fees you are not paying from your price, so the savings is theirs), I do NOT recommend listing FSBOs on Zillow. Once they are there, they become part of a price history on the home, and if you ultimately employ an agent and try to raise the price, the buying public will be able to see online your earlier price and you will struggle to get traction at the higher price point.
Zillow is a popular online tool for many consumers (my preference is howardhanna.com as it is not owned by a publicly traded company reporting to shareholders and is not selling space to make money for shareholders, which in some instances may not be in a consumer’s best interests). Given that many consumers use Zillow, I do recommend you take the time to get the information about your home correct before listing!
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by Kathe Barge | Jul 27, 2017 | Blog, Buyers, Home Staging, Inspections, Listings, Market Trends, Property Updates, Real Estate, Sellers
In your May 11th column, you also mentioned that updates may not affect a home’s value but may affect the chances of getting it sold. Can you clarify what you mean by that?
Upon reflection, that statement, which I quoted for a real estate website, may be a little broad. I meet with many sellers who are simply in shock with what this market requires to generate a sale. In many cases, its not a case of the updates being required to increase the chances of a home selling quickly – they are required for a home to draw an offer at all. Do the updates increase the value of the home? Technically yes, because without them the home is almost unsalable, except at perhaps the deepest of discounts.
This era of home buyers simply do not want to do any work at all. Perhaps my generation of parents did it all wrong when we handed our children life on a silver platter! They watch too much HGTV and expect to see that when they walk into a home. I have been on my soapbox many times before about many of these topics, stressing the importance of addressing them, but not from the perspective that updates are important to even generate an offer. Buyers really don’t want your wallpaper no matter how stylish. Nor do they want your colored carpets or shiny brass, to name a few other deal killers. They aren’t going to do the “few projects” you left behind for them – they are just going to move on to another home.
A recent case in point is a listing I sold after just over a month on the market. It had been on the market previously for two years with no offers. It is a fantastic home in a great location on a great piece of property, but it just didn’t sell. The sellers removed wallpaper and draperies, painted the interior in my favorite ‘greige‘, updated plumbing and lighting to a silver palate and were rewarded for their efforts with a quick offer. As frustrating and costly as this sounds, unless you remodeled your home within the past ten years, this is the price you may have to pay to get a home sold in today’s competitive market, unless you are willing to price it at, or accept, a deeply discounted price.
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As an Associate Broker at HOWARD HANNA REAL ESTATE SERVICES, Kathe Barge, CRS, ABR, CNE, is ready to answer any questions you may have regarding your real estate needs. Feel free to contact her at the office (412) 741-2200 x238, or on her mobile phone (412) 779-6060.
