Our home is on the market – is it ok to show it decorated for the holidays?
Decorating for the holidays while your home is on the market is not a bad idea – homes often look their best decorated for the holidays – as long as a few basic guidelines are followed. Briefly stated, when decorating this holiday season, keep your decorations more neutral and reasonably simple.
Start by taking a more minimalist approach. You may have bins and bins of holiday decorations like I do, but when your home is on the market, its best to leave some of those decorations packed away. Choose decorations that have less of a religious theme. Snowmen, evergreen wreaths, poinsettias and nutcrackers, for example, have broad appeal. Be careful that the decorations that you do choose compliment your décor. You may have changed the color scheme in your home since buying your holiday decorations and it’s important that they don’t clash! Don’t over-decorate the exterior of your home either. A few well placed, tasteful strands of lights or an attractive evergreen wreath can add sense of warmth to your home, but keep your inflatables packed up!
If you bring in a tree, make sure it doesn’t overwhelm the room. This year a tall, skinny tree might be the best choice so that the room doesn’t feel small. And of course, consider using decorations to highlight some of your home’s special architectural features, such as using candles to draw attention to an attractive fireplace.
When showings are scheduled, a brewing pot of mulled cider or a plate of freshly baked cookies is not only seasonably appropriate but will go along way toward creating an inviting feel for your buyers. And don’t forget – even if you normally keep your thermostat down, be sure to turn it up for showings so that buyers are comfortably warm!
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Interest rates jumped up again. Is it time for us to just wait until spring and hope they start to come back down?
If you are a buyer, the real estate market offers you a great opportunity right now! Don’t be fooled by the higher interest rates – this is an awesome market for you to buy in! Why? Because all of the people who you would have been competing with are afraid of the interest rates and sitting by the sidelines. This allows you to have a competition – free opportunity to buy a home! Just six months ago, buyers would have been overjoyed to have an opportunity to buy a home without competition, to have had an opportunity to have had an offer accepted on the first home they offered on instead of their seventh, to have been able to purchase a home at asking price rather than asking price plus 10 percent! Do not miss this golden opportunity – there are some very nice homes available right now. You can refinance later with a convenient no cost refinance loan – get the house now! Once rates start to come back down, the buyers (who have all been sitting by the sidelines with you) will come racing back into the market, and bidding wars will be back. Make the smart move – buy now.
And as a side note, I do not feel we will see a “crash” in prices. Inventory remains at record lows and those homes that are selling continue to increase in their sales prices to new record highs, despite the increasing rates. This is not 2008 – I am not anticipating any “deals” to be had this spring – if anything the natural increase in the buyer pool we see every spring will boost prices because of the extreme lack of inventory. Feel free to reach out to me and we can strategize on how you can take the most advantage of the current real estate market while you still can!
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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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We see recent projections forecast a housing downturn. What do you think?
You are correct – Goldman Sachs recently released a paper forecasting that the US housing market will see a downturn. Their reports predicts that new home sales will drop 22%, existing home sales will drop 17% and the housing GDP will drop 8.9% this year and that the decline will continue in 2023. This downturn is attributed to rising interest rates that were implemented to combat inflation. They have also noted that pandemic trends for second homes are fading. That said, the report does not anticipate a downturn in prices – just demand – and suggests given other economic factors at play that the market will remain flat for most regions.
What does this mean for home sellers? It means a return to traditional marketing. In other words, home sellers need to anticipate that they will need to take the time to condition their homes for market, stage their homes, and present their homes in an appealing way for buyers. Gone are the days, at least for now, when buyers are so desperate that they are going to buy homes in any condition just to get a home. Sellers also need to anticipate that it may take longer to find a buyer for their home — typically in Pittsburgh most homes would take between 120 and 150 days to sell in traditional market. Home sellers need to adjust their expectations and not anticipate that their home will likely be sold in one week. It will also be very important to price your home correctly and not take giant stabs at the market just to see if it might stick. It probably won’t stick. Appraisers are starting to doubt valuations on homes and we are starting to see some appraisal failures. For you sellers out there, it will be very important for you to pay greater attention to whom you choose as your listing agent. Marketing techniques and agent experience will become all the more important in generating a successful sale of your home. Take the time to do your research and choose an agent with great experience in all kinds of markets.
Buyers – I seriously doubt that this is going to become a buying a free-for-all like we saw back in 2009. There is no anticipation that there is going to be a downturn in pricing in Pittsburgh. But the good news is you may be able to buy a home with less competition and you may even be able to get a small discount. You still need to plan on being well qualified when you go in with your offer. And again, choosing a buyers agent with significant experience who can help you to understand market trends and where you should be offering will be critical to a successful home purchase.
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We plan to move out of our home before we put it on the market. Any thoughts on selling an empty home?
Some homes definitely sell more readily vacant – my last home was one of them – and so I definitely do not dissuade sellers from emptying their homes before selling them, but there are some important tips to keep in mind!
If you are emptying your home, then empty it. Do not leave behind the items you don’t want. Do not leave behind soaps, shampoos, chemicals, lawn fertilizers… Empty is empty. So please plan on a complete clean out. If you need help finding people to help dispose of items, give me a call!
It is critical to be sure that once your home is empty, you bring in a handyman to make sure that everything is in good order. Holes should be patched and touch-up painted, scuffs eliminated, carpets and windows cleaned, all lightbulbs working … When there is no furniture to look at, the condition of the home is all the more important.
Make sure you have a plan for upkeep of your empty home. The yard must be regularly maintained, including weeding, leaf and snow removal. The interior tends to be easier to keep up, but do be sure you arrange for a periodic quick clean. It is also a good idea to hire a neighbor or friend to check your home regularly to make sure that there has been no crisis at your home (such as a broken water pipe).
Be sure to keep your home properly conditioned (warm enough in the winter and cool enough in the summer). I have actually seen mold grow inside a home when sellers do not keep the air conditioning running in warm weather in their vacant homes – this will cost far more to clean up than the air conditioning bill! Finally, consider putting lights on timers so when buyers drive by in the evening, your home does not appear dark and unloved!
Selling a vacant home is not a bad thing, but it is important that you follow these tips to be sure your home is presenting well to prospective buyers!
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
How do home sellers protect themselves from big walk through bills from a buyer?
Buyers conduct a final walk through right before they close on a home. This is probably the first time they have seen your home vacant. If they find conditions they aren’t expecting, you can expect a bill at the closing or a last minute request to remedy the condition.
What kinds of things might come up? There are many things that can cost you money at a walk through. Here are a few. If you have any damage to your floors (even if it was there when you bought the home) and you failed to list the damage on your disclosure, and it wasn’t obvious when you walked through your occupied home (under rugs or furniture), you can expect that the buyer will expect you to pay for the repair/replacement when he discovers the issue, which could be a significant expense. What should you do? Disclose. Disclose. Disclose! When you list your home, take the time to make sure your disclosure lists every possible condition issue with your home.
If you leave anything behind that isn’t attached or specifically included, you should anticipate you may be required to call a last minute hauler to remove the items. If the items were there when you bought the home, that’s no excuse. The house must be empty when you leave unless you have the buyers’ specific consent to leave the items behind.
Forget to cut the grass in a few weeks? You could be asked for a credit to have the lawn mown. Forget to clean the house? If its not at least “broom swept clean” you could be paying a cleaning fee. Forget to complete your inspection repairs or forget to check the work and make sure it’s done correctly? You can’t rely on the contractors to get it right – you must check the work – if they didn’t finish or did the wrong thing, you will likely have to pay for the repair again. Accidentally remove an inclusion such as the TV wall mount bracket? You may have to pay for a new one.
Take the time to make sure the home is exactly as you would want it were you moving in and be pro-active with your buyers if you discover any issues on your move out to avoid any closing table surprises.
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
What kinds of items would be viewed as “hot buttons” for home buyers on inspections?
If you are a home seller, there is an ever increasing list of items that you will be expected to address if any are discovered on your home inspection. Given that, if you are thinking about selling your home, it would be a good idea to determine if any of these conditions exist at your home and remedy them prior to listing your home. Items that sellers are generally expected to address these days include:
Radon: if your home exceeds 4.0pCi/l, you will be expected to remediate the radon, even if it was a low reading when you bought the home. Radon varies over time. The estimated cost for a system is approx.. $1300.
Mold: If there is mold anywhere at all, you will be expected to have it remediated. Basements and attics are the most obvious places mold hides out, but be sure to check showers and under sinks.
Electrical: If you have knob and tube wiring, you will likely be paying for it to be removed and replaced, unless you price your home with a rewire in mind and disclose its presence. If your home has any Pushmatic brand electrical panels, buyers will also expect those to be replaced.
Broken Seals: if you have thermopane windows, doors or skylights in your home, buyers will expect you repair the broken thermo seals. This is evident because the windows have a cloudy look to them. There are a few companies in Pittsburgh that can do this reasonably affordably.
Septic/Sewer: Sewer lines are the newest “must do” inspection. If a buyer finds roots in your sewer line, at a minimum you will be expected to clear the roots from the line, but if they are bad you will be expected to line or replace the line. This can be extremely costly so I highly advise that you camera your own lines in advance of selling and get them in good shape.
You can be certain that if any of these conditions exist in your home, you will be expected to remedy the condition unless you disclose its presence and price accordingly.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offers?
Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value. If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home. Your bank will need your new home to appraise so that your debt percentage is not greater than 80%. If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.
If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price. While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.
There is a definite risk that in a hot market you could overpay for a home. Homes are in some circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home. Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
It seems that high end home sales continue to lag as compared to the rest of the market. Thoughts?
Our high-end market in the Quaker Valley School District is moving more slowly than the rest of the market, and this is particularly apparent when homes under $1 million are selling fast and at premium prices. Speculation abounds as to why that is the case. Many attribute that to the fact that our tax system was restructured several years ago to allow for a larger standard deduction and lower marginal rates but at the cost of limiting the deduction for property and income taxes to a combined total of $10,000. Our property taxes are high in Western PA as compared to many parts of the country and that will impact expensive homes, with the possibility of the highest taxes, the most.
Buyers may need a general mindset adjustment. As a whole, our income taxes in PA are lower than the majority of states. Our earned income tax here in Sewickley is only 1%, compared to 3% in the city of Pittsburgh. We do not have sales tax on clothes or food as many states do. So while our property taxes may be on the high side, we are in a far better position overall than many residents of metropolitan areas with similar advantages to Pittsburgh. Property taxes are just a cost of living, and if your bucket list includes the amenities of a higher-end home, the taxes are what they are. The sooner our marketplace accepts this reality, the sooner our higher end homes will start selling again!
However, other high-end Pittsburgh markets are selling more readily than ours and while this article is not a political commentary, the reason most often cited by high-end buyers choosing against Quaker Valley is the school situation. No one likes controversy – why move into it if you don’t have to? If we can make unified forward progress, that may buoy our high-end market.
In the meantime, our middle and lower end market segments are moving fast and often with many offers. Homes in these segments that are priced appropriately for condition and amenities are often selling with multiple offers, and in a very short amount of time. These market segments are accelerating quickly in their pricing. Waiting for the home to show up on your Zillow search is likely going to be too late. If a move is something you’ve been considering, give me a call and we can strategize on how you can best meet your needs in this complex market we find ourselves in! 412.779.6060
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
How do you guard against overpaying in this competitive market?
You have a good reason to worry about prices in the market that we are in. Currently it seems that prices have risen at least 10% in some price brackets since the new year. That’s an incredible amount for the Pittsburgh market which typically appreciates at the rate of 1 to 2% per year. That increase is not being seen a crossed all price brackets – the million dollar plus market has as a general rule seen less. However, the majority of our homes are still seeing multiple offers and the prices are still coming in over the asking price.
Given the current state of the market, there is a high likelihood that those participating in some of the more intense bidding wars going on right now are going to end up overpaying for their homes. If they remain in their homes for 5 to 7 years, however, that should not be an issue. We should see enough market appreciation in a 5 to 7 year period to make up for any premium that might be paid in the current market.
If you are getting a mortgage, the appraisal required by the mortgage company provide some level of protection. However, most appraisers are trying to make their appraisals come in where the market is presently, so that doesn’t exactly protect you from the “bubble” we may be experiencing. Additionally, if you are involved in a multiple offer situation, to be the winning bidder you will probably have to offer some level of “appraisal gap coverage” meaning that you agree to accept the appraisal at a lower number than the purchase price, should that occur. So, you will not benefit from the typical protections afforded by an appraisal.
In the end, the answer to your question is that if you are buying in this market, you are just going to have to come to peace with the fact that you may need to do what appears to be overpaying in order to get a home for you and your family. However, in the end, even if the market does settle down a bit, as long as you are not planning to move in the near future, the market will eventually catch up with any premium you might have to pay.
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Our neighbor just had to replace their sewer line – is that a common home inspection repair?
Sewer lines have become as radon was 20 years ago – today’s hot button for home buyers. In some boroughs (Mt Lebanon, for example) the borough now requires that before a home seller can transfer ownership, the sewer line must be scoped and must be without issues. Here in the Sewickley area, we do not have any boroughs imposing any such requirement on home sellers yet, but many buyers today do have a scope performed of the sewer line as part of their home inspection. And yes, if issues are discovered, they do expect the seller to remedy them. If a sewer line needs to be replaced, the cost will likely be between $5,000 and $10,000.
Sewer lines are not something we think about on a daily basis. As long as we don’t have back-ups, we assume that all is well with the line. But this is not necessarily the case. With older homes, sewer lines were made of terracotta pipe and this can break easily and can also be easily infiltrated by tree roots. If you live in an older home and haven’t replaced your sewer line, there is a good chance you have some issues.
Paying for a sewer camera test is not anyone’s idea of a good time, but if you are contemplating a sale of your home, it is probably a smart, pro-active thing to do. If you discover a problem in advance, there may be some cost-effective options for you to solve the problem without a full replacement of the line. Sewer lines can often by lined with a plastic liner. Tree roots can often by removed by hydrojetting. If you wait for a buyer to perform the test, you may get stuck with a full new line — the buyer might not accept one of the compromise options. So its best to explore the sewer line now, before it becomes an issue, and make any needed corrections.
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We have security cameras in our home – is it ok to leave them on when we show our home?
Video recording is permitted, except in areas where people have a reasonable expectation of privacy, such as a bathroom. In those areas, you may not record. Audio recording is much trickier, and most security cameras these days record video and audio. In the state of Pennsylvania, audio recording requires the consent of all parties being recorded. Therefore, the best practice, to protect yourself from any legal consequences, is to disable audio recordings of your showings. This does not mean that you cannot listen in – you can! It means you cannot make an audio recording of the showing.
Some sellers are just curious and want to know what people are saying about their homes. Some won’t be able to figure out how to disable the audio recording component of their system. In those cases, it is important that you prominently disclose that the property has video and audio surveillance. This needs to be done in a conspicuous way – you should post a notice at your entry door as well as someplace immediately visible on entry – I create a fun little sign with a smiley face that says “smile – you’re being recorded. Property is protected by audio/video surveillance.” When people enter your property having viewed the signage, it is deemed implied consent to the recording. It is also important that you make sure that your Realtor clearly indicate that there is audio and video surveillance in the MLS Realtor comments as well as in the lockbox instructions, if applicable. Do not forget to fully disclose your cameras to your agent (this should be done the first time your Realtor comes over, as recording anyone without their consent is illegal – not just the prospective buyers!) Over-disclosure is a good thing when it comes to recordings!
If you are a buyer, you should of course assume that every property you view is protected by audio and video recording and be sure to keep your comments to yourself until you are back in your car (many homes have extensive exterior surveillance as well as interior surveillance, so talking near the home is generally not a good idea!) Keep interior conversations positive, but don’t say more than you would want to say directly to the seller in advance of submitting an offer!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
What impact do you think rising interest rates will have on the real estate market?
I can’t tell you how many years the Fed has been warning us that they are going to raise the interest rates, and then nothing happened. But now, it looks like it is finally happening. Less than one year ago, conforming loans with good credit could be procured at rates below 3% fixed. Now they have inched up to 3.75% for conforming loans. While these are still historically great rates, the days of mortgage interest rates in the 3% range appear to be gone and we are slowly inching upward.
What impact will this have on the market? Typically, when rates increase the market slows. Buying power decreases – a buyer will qualify for a smaller mortgage amount when rates are higher. Even if a buyer qualifies for a loan amount, they may not want to pay the added amount each month attributable to the higher rate. Many buyers are cognizant of how much they don’t have available to spend on quality of life purchases, such as dinners out, when they have larger mortgage payments. This boils down to the fact that they may be unwilling or unable to buy at a price they could have last year, and this could depress housing prices.
However, this is counterbalanced by the fact that we are in a market with record low levels of inventory, so it is highly unlikely that interest rates will have any effect on housing prices in the short run. If anything, rising rates should cause buyers to move quickly and lock in homes and mortgages before rates continue to climb. And this would be the most sensible short-term response to rising rates. Buyers – rates are actually going up! The time to act is now!
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We would like to move to Sewickley. Are there any affordable homes anymore?
Of course there are! But Sewickley, particularly in affordable price ranges, has become a very competitive market. It seems the secret is out – many people know about our very unique combination of a highly rated school district and a charming, walkable shopping district. Every agent I know has a list of buyers waiting for affordable homes to become available!
What does this mean for you as a home buyer? First, its critical to make sure you are fully pre-approved for a mortgage. If you are fully pre-approved (having submitted all of the supporting documents to your lender), you may be confident in your ability to get a mortgage and feel comfortable waiving your mortgage contingency, which will make you a much more competitive buyer if there are multiple offers.
Second, keep your offer as “clean” as possible. Try not to add in special requests or inclusions that sellers don’t usually leave with a home (such as furniture). Keep your inspection period as short as possible, or consider waiving inspections altogether if it is a newer home.
Third, keep your offer prices up. If you love a home, that is no time to lowball a seller. Even if a home has been on the market for a while, we often receive multiple offers at the same time. You don’t save anything when you make a low offer and you don’t get the home.
Finally, be open to compromise. If a home meets 7 out of 10 of your wish list items, consider it a home run. In a tight market like we are in, if you hold out waiting for your perfect 10, you will likely find yourself sitting on the sidelines. To get a Sewickley home, you may have to give up a garage, or a two car garage. You may need to take on a few projects. You may need to accept that there is no master bathroom or no main level family room. You may need to accept that the basement ceilings are lower and so any “game room” is a little more basic. You may have to accept a less open floorplan or a longer distance to the center of town. But remember, once you close you will make it your home, flaws and all, and will absolutely love being a part of this vibrant community!
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Everything you could ever need, in one home, to live an exclusive life of leisure, luxury, convenience and privacy. This spectacular 11 acre Sewickley Heights estate is less than 1 mile from the heart of Sewickley Village and yet here, you will feel in a world all your own! 6 bedrooms, 7 full & 2 half-baths. Fully equipped chef’s kitchen, expansive family room. 2 home offices. Main level owners’ suite with private den and outdoor patio, spa-bath. Main level laundry, mudroom, attached 3 car garage, home gym, wine room. In warmer months, enjoy poolside entertaining with the walk-out lower level gathering space with kitchenette and two locker rooms that opens onto the lush lawns, heated inground salt-water pool with poolside terrace and sport court. Entertaining is magical on the expansive stone terraces, with covered outdoor living room and outdoor built-in kitchen. Easy access to the Allegheny Country Club, Pittsburgh region luxuries, easy access to I-79 and the Pittsburgh airport. $3,750,000.
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We are planning to sell our home but have an opportunity to sell it before it goes into the MLS – what are your thoughts?
Many people often think that it’s a great idea to sell before their home hits the MLS – you certainly save yourself the hassle of having to get your home completely ready for what could be a large number of showings. However, in this market, the multi list is really a sellers best friend for many reasons and I do not advise any seller to sell their home “quietly.”
Many homeowners have been bombarded with love letters this fall letting them know that, should they decide to sell, there is an eager buyer waiting to buy. Any realtor who is actively involved in our market will also likely have at least one buyer for just about every price category out there. All of these people would absolutely love the opportunity to be able to purchase a home without competition from other agents and buyers. But this is highly unlikely to be in a seller’s best interests.
The multi list is a very powerful tool when selling your home. It, and all of the attendant publicity, gives you the opportunity to cast a very wide net for buyers. With the extensive publicity, any serious buyer is going to be highly likely to produce an outstanding offer. They will not waste time trying to decide whether or not your home is the right home for them. You are also far more likely to get a higher offer from multi list exposure as buyers feel the pressure from the market and will produce higher offers to inure they get the home. It is true that some people simply do not need every last dollar out of their home and may be comfortable leaving what could be tens of thousands of dollars on the table in order to get a quick sale, and you may be that benevolent home owner that wants to give somebody a break, but that isn’t most home sellers I speak to. Additionally, without multi list exposure, should you put your home under agreement with a buyer through a “secret sale” you are much more likely to get a long list of inspection requests. Therefore, I highly advise that you select an agent experienced at handling the intricacies of multiple offer situations and get your home in the MLS!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Are you starting to see the market cool down at all yet?
The answer to that question is both yes and no. In part it depends upon the price range that you are looking in or are selling in. Our homes priced under $500,000 are still selling quite readily and often with multiple offers. However, the buyer pool is definitely smaller right now. And at the higher end, while offers are still being received, the pool is much smaller than it was a couple of months ago.
This does not mean that sellers are not doing well with their proceeds – they are. But if you are a buyer, what this means is that there is an opportunity for you to be able to buy a new home without having to compete with a dozen people. You may still be competing with a couple of other buyers. It’s still very important that you be fully preapproved for your home purchase so that you present yourself in the best possible light to the seller, but you have a much better chance of winning at this point in the year. So if you’ve been sitting on the fence waiting for a chance to buy a new home in a more manageable market, this would be that market. At this point we are definitely expecting another busy spring market so if you are hoping to buy, the fall market will be your very best opportunity to do so without the overwhelming crowds that a spring market brings.
If on the other hand you have been sitting on the fence hoping to see a downturn in the market so that you can jump in and get a buy, I wouldn’t hold your breath. There is absolutely nothing to suggest that we are going to see a downturn in our market. I have watched the market carefully for many many years now and just when I think that the housing prices are ridiculous and there has to be a softening coming, another selling season opens and prices are even higher. Excepting 2008, which there are no indicators to suggest will happen again in the near future, our prices continue to steadily climb (and even in 2008 we did not see a housing crash – we just remained stable for a year or two with no additional appreciation).
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We are thinking about selling the home we have lived in for 25 years but it seems like such a daunting task. Do you have any advice?
If you are like most people who live in their homes for multiple decades, you have undoubtedly collected a lot of treasured memories in the form of physical objects. Your son’s first “big boy bed,” your daughters first bike. The furniture from your first apartment that you saved, certain one of your children would want it some day. Whatever it is, a move to a smaller home means that you are going to have to part with much of what you have collected.
For starters, you need to give some thought to how much you will be downsizing. If you are planning to move from a 4000 SF home to a 1500 SF condo, you have a lot of clean-out to do. If you are moving from 3800SF to 3000SF, you will not need to dispose of as much. I do recommend that you start your clean-out right away. Your home will show much better if it is emptied of your “collections” and presents in a more minimalist way.
If you need help, a professional home organizer is your best first step. An organizer can help you break down the process into manageable pieces and formulate a plan for the coming months. You should anticipate that the process will take several months, maybe even a year. Whether you use a professional or not, you should review all of your belongings to determine what you really NEED for your next adventure, and discard the rest. If you have items that hold treasured memories, consider photographing them and creating a “Memories” book.
Even if your move is years away, now is a good time to get started on those areas of your home that you don’t regularly use anymore, such as adult children’s rooms. Pack up their favorite things in Rubbermaid bins that you can easily send to their new residences someday and re-home the rest! For all of your “no longer needed” items, there are so many wonderful charities that will take them, and in addition to getting a home ready to sell and easily moved, you will get a tax deduction as well for your benevolence! If you need help finding these organizations, or a professional organizer to get you started, feel free to give me a call!
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We hear selling a home can be a trying process. Any annoyances a seller should be expecting?
Below is a short list of many of the “joys” sellers might experience during the listing process. Being aware that these are possibilities will hopefully help you take them in good humor if they happen to you!
The agent showing your home will miss appointments and not call or show up.
Appointments will be made and cancelled at the last minute.
Some showings will last about five minutes and some will last 3 hours.
There will be a day when I call you and say someone wants to see your house, and you are going to ask me when. And I will say: “Look out your windows, they are sitting outside now”!
Agents are going to knock on your door or even drive by, see you in the yard and ask if can they see you house.
Agents showing your home will forget to turn lights off.
Agents showing your home will let your pets out (best to remove them from your home for showings) or your neighbor’s pet in.
Agents will provide unhelpful feedback – buyers buy homes when they attach emotionally to a home and when they don’t, their feedback is often nonsensical.
Agents will not provide any feedback – incredibly annoying, I know.
Expect lowball offers (at least it is a starting point). If your home has been on the market for more than a month, there is a reasonable chance that you priced it too high – maybe the lowball isn’t as low as you think.
Things will come up on the inspection that you had no idea were wrong with your home and you will be sure the inspector made a mistake. A pre-inspection is a great way to protect yourself against this!
The buyer will make ridiculous inspection requests.
The buyer will ask to bring in contractors for estimates for work they want to do after the closing at the seemingly most inconvenient times.
The property might not appraise at what you are selling it for. In a hot market like this one, this is a real risk. Be prepared to adjust your price if your sales price is over the listing price and it doesn’t appraise.
The closing date on the contract may change. Lenders and closing companies remain swamped right now – be open to the possibility of a delay.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
In your articles you often write “when it is priced right, it will sell.” Our home is on the market, has not sold and we feel it is priced right. Is this maxim always true?
The short answer is that it is not always true. Some homes just take longer to sell than others. If your home is “quirky” in its market, then it may take longer to sell, even if it is priced correctly. By quirky I do not mean dated décor or with deferred maintenance you have not yet completed. What I mean by quirky is, for example, if you are trying to sell a 2 bedroom home in a market that is nearly uniformly 3+ bedroom homes, that could slow down its resale.
However, if your home has been on the market for several months and is under $1.5M and has not sold, it is likely it is overpriced. We have a tremendous backlog of buyers looking for homes in our area. It does take time for buyers to view and assess the possibilities of a home, but certainly not months. As a general rule of thumb we like to say that if a home has had 13 showings with no offer or if it has been well-marketed for 13 weeks without an offer, an adjustment must be made to draw an offer. In this hot market, it should take less time than that! Sellers currently have expectations that the market should yield them tremendous premiums, and 2021 has certainly been the year of increasing prices, but it is overall still grounded in reality. In the end, in this market if your home has not sold in the first month, you are likely aiming too high with your listing price. The three time-tested factors that determine sale-ability of a home are price, condition, and location. Location cannot be changed but does have a big impact on price. In Sewickley, even a block can dramatically impact whether a home sells quickly or not. Condition can be adjusted and I suggest you read some of my prior articles on my Ask Kathe blog at www.kathebarge.com for important information on what buyers expect in today’s market.
The final factor is of course price. Depending on the price range your home is in, even a small adjustment can result in renewed interest in the home. Additionally, if you have received constructive feedback regarding either deferred maintenance of dated décor, you will either need to adjust your condition or your price. In the end, price is the key and if this market is not yielding you an acceptable offer, in all likelihood it comes down to one factor – it is not priced correctly and should be repositioned in the market.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
What should we expect from the Buyer’s walkthrough?
Buyers conduct a final walk through right before they close on a home. This is probably the first time they have seen their new home vacant. If they find conditions they aren’t expecting, a seller can expect a bill at the closing or a last minute request to remedy the condition. What kinds of things might come up? There are many things that can cost a seller money at a walk through. Here are a few.
If there is any damage to floors (even if it was there when a seller bought the home) and the damage was not listed on the disclosure, and it wasn’t obvious when the buyer walked through the occupied home (under rugs or furniture), a seller can expect that the buyer will expect the seller to pay for the repair/replacement when he discovers the issue, which could be a significant expense. What should a seller do? Disclose. Disclose. Disclose! When listing a home, sellers should take the time to make sure the disclosure lists every possible issue with the home.
If a seller leaves anything behind that isn’t attached or specifically included, a seller should anticipate they may be required to call a last minute hauler to remove the items. If the items were there when the seller bought the home, that’s no excuse. The house must be empty unless you have the buyers’ specific consent to leave the items behind.
Forget to cut the grass in a few weeks? A seller could be asked for a credit to have the lawn mowed. Forget to clean the house? If its not at least “broom swept clean” a seller could be paying a cleaning fee. Forget to complete inspection repairs or forget to check the work and make sure it’s done correctly? A seller can’t rely on the contractors to get it right – they must check the work – if its incomplete or incorrect, a seller will likely have to pay for the repair again. Accidentally remove an inclusion such as the TV wall mount bracket? A seller may have to pay for a new one.
Take the time to make sure the home is exactly as you would want it were you moving in and be pro-active with your buyers if you discover any issues on your move out to avoid any closing table surprises.
If BUYING or SELLING real estate is in your future, please get in touch with me and put my expertise to work for you!! As YOUR REAL ESTATE ADVOCATE, I will help you avoid pitfalls like those mentioned above. 412.779.6060
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offer?
Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value. If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home. Your bank will need your new home to appraise so that your debt percentage is not greater than 80%. If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.
If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price. While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.
There is a definite risk that in a hot market you could overpay for a home. Homes are in many circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home. Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Is there a preferred style that is more desirable to buyers?
Six months ago, I would have told you that buyers overwhelming preferred the gray and white aesthetic. You know the look. White as the base color for “hardscapes” like tile, countertops and cabinetry with gray as the primary color (and perhaps a few pops of color reflected in easy to change items such as throw pillows).
How times have changed! Today, the answer is – buyers just want a home, and if the home is well-conditioned, they seem to be looking past style and focusing on whether their baseline needs, such as the number of bathrooms, bedrooms and garages are met. Design aesthetic and color schemes have become much less important in this sellers’ market.
The next obvious question then would be does that mean that any home will sell in this market? And the answer is yes, as long as it is properly priced for condition. What we are seeing in this market is some homes are coming on priced as if they were completely remodeled and in perfect condition when they may in fact not be. Buyers are paying seemingly ridiculous prices for many homes on the market. However, the common thread amongst homes that are being snapped up quickly and achieving market high prices are that they are perfectly conditioned and well remodeled or are priced in line with the condition and updates that they do have.
In the end, this is an extremely strong sellers’ market in which sellers are receiving more money for their homes and they would have even six months ago. However, while the prices that are realized may not be a function of the design aesthetic of the home as it perhaps was last year, it is still a function of how recently and fully updated the home is and how pristine the condition is, both mechanically and from a cleanliness perspective.
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We are planning to update the color palette in our home. What are the “in” colors these days?
Gray (and its many shades including greige) have been in-style for so long now that its hard to imagine it ever going out of style. Gray is still quite popular with buyers – homes painted in a gray/greige and white color palette almost universally fly off the market. However, the incoming trend is strongly leaning towards the whites. White comes in so many shades – and even straight out of the can white is quite a nice and refreshing color. In some cases, white is being combined with an accent wall in a gray tone or other neutral, and this can work quite well.
Of course, like any other color, it is critical that you choose the correct shade of white to compliment your trim. It is easy to end up with the walls clashing with the trim if you are not careful! An easy solution is to paint the walls the same color white as your trim! Don’t let the shades of white fool you – there are so many hues of white, and before you paint be sure to look at the undertones in the white to determine which undertone you prefer – a tiny hint of gray? Pink? Green? Unless you use the white straight out of the can, there will always be an undertone.
White is also a very popular base for countertops and tile. Ideally, they are not pure white – most popular are those that use white as the base color and then include other neutrals such as the grays and browns.
Where to start your painting? Strong colors are not currently where the market is, so it’s best to begin repainting the rooms that are currently wallpapered (also not popular with buyers unless the wallpaper is pretty new and very trendy) and rooms that are painted the strongest colors. In an ideal world, you will ultimately create an interior aesthetic that, while every room does not need to be the same, the colors blend nicely together.
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
What are the most popular “must haves” in higher end homes?
The pandemic has certainly shifted the most sought after features on a buyer wish list a bit, and it will be interesting to see how this continues to evolve as we achieve higher percentages of full vaccination and start moving back to “normal.” Right now, pools are at the very top of the wish list for high end buyers. As people have migrated away from larger social scenes and toward family-only or small group events, pools have skyrocketed in their popularity, which is not typical in climates like ours where pools have such a short season.
Other sought-after features in higher end homes include large kitchens. The appliance selection is less critical as long as they are stainless or panel-front. Commercial grade ranges are always a hit, but if the home has a cooktop and double ovens, that will work as well. The brands are less important than the look. White kitchens remain our most popular, but whatever the cabinet color, the trend has definitely swung toward lighter countertops.
A complete wish list would also include a home gym, a home office (two is even better), at least three garage bays (more is better in this case), a large walk-in closet in the owners’ bedroom (two walk-ins are strongly preferred), and a luxury owners bath with large shower, separate free-standing soaking tub and double vanities. Other popular items include upper level laundry rooms, lower level movie rooms, wine cellars and covered outdoor patio spaces (and outdoor kitchens and/or fireplaces). As more boomers enter their retirement years, main level owners’ suites have also become quite popular (and very hard to find in this area).
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We keep reading that now is a seller’s market. Do you agree?
YES! We currently have the perfect storm for a seller! We have been experiencing historically low inventory for several months. It has been suggested that as a great portion of our population is fully vaccinated, we may see an influx of inventory. Some sellers, who may have been on the fence about having prospective buyers in their home because of COVID may start to feel more comfortable once we achieve higher vaccination levels and may be more willing to put their homes on the market. Some homeowners have seen COVID as an opportunity to retreat to homes they own elsewhere and, returning to Pittsburgh, are deciding they would prefer to remain in their alternate location on a permanent basis. Some have simply taken a longer vacation to a new location and decided to make that home – with the rise of telecommuting it is now possible to work in remote locations. Whatever the reason, we are expecting a return to more normal inventory levels as we move through 2021, and with that will likely come a cooling in demand – so if you are a seller, NOW is your chance to get your best price from our market.
Also in a seller’s favor are the low interest rates. Rates have creeped up a bit and have seemed to stabilize again – still at historically low rates. Low rates allow a buyer to afford more home, while still paying the same each month. This supports the increasing prices we have seen. If rates continue to climb, that will likely soften the prices a buyer is willing to pay.
It is worth noting, however, that the perfect storm is really happening in our middle market and below. High end homes have not been experiencing the same demand this spring, and are not as affected by interest rate fluctuations. Our high end market is its own entity – yes, it is fair to assume that if you were ever going to achieve your desired price, it would be in this very robust market. But we simply don’t have the same influx of buyers in this price range, and those that we do have tend to be very exacting about what they want in their new home. If yours is a high end home, then its important to be patient – the market does surge in the high end as well – its just less predictable!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We have noticed that several homes have sold lately before they have hit the MLS. Are these “pocket listings” a good way to sell your home?
If a home sells before it hits the MLS, as a “pocket listing” as they are often called, it is highly likely that the seller could have sold the home for significantly more money, particularly in this market. The MLS exposes a home to a large number of prospective buyers in a very short amount of time. This widespread exposure is what has the potential to drive the price up for the seller.
A “pocket listing” is more like a secret sale. The agent you are dealing with may have a buyer that is willing to buy your home, but if it’s that easy, chances are you could have received more money if the general public had a chance at your home, and a bidding war could have possibly ensued. If an agent is being straightforward with the seller and discusses the strategies involved with using the market pressure of the MLS to drive in a higher price, it’s a rare seller who will willingly leave money on the table.
So why do we occasionally see these seemingly “secret sales” taking place? Some sellers perceive these pocket listings as a good thing – some don’t want to be hassled with multiple showings, some don’t want the general public to know their home is available for sale. If a seller’s goal is to maximize financial return, however, a pocket listing, or accepting an agreement of sale before the home is marketed in the MLS, is rarely the best strategy.
So no, my 22 years experience indicates that a pocket listing is usually not in a seller’s best interests. The highest returns I have seen sellers achieve occur in scenarios when they have used strategies to maximize the excitement within the buying community through proper pricing, excellent conditioning and staging and full MLS exposure.
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Now that 2020 is coming to a close, do you have any reflections on the year in real estate?
2020 is a year we will all be happy to see in the rear view mirror, and that day is coming soon! In March, we were all worried that the pandemic would result in a major down turn in real estate, and for a couple of months, the market barely had a pulse. But when we moved out of the “red” zone, the market came crashing back like nothing we have ever seen before. While there was a huge influx in inventory that resulted from the near zero level of new listings in the “at home” months, there was an even larger crush of buyers looking for a new home, and the summer months were plagued with bidding wars at many price points. The lower price ranges saw significant appreciation as buyers vied for an opportunity at an affordable home in our school district, but even the two million dollar market saw more sales than it had in several years. In most years, our market slows down in August, but not this year. As we head toward the holidays, we don’t have the extreme over-supply of buyers that we saw this past summer, but many homes are still selling fast and for top dollar.
As we move into the new year, buyers are getting anxious. We are seeing minimal new inventory (not unusual this time of year) and they are justifiably anxious about whether there will be a nice selection in the spring. Being “stuck” at home, many homeowners have taken the opportunity to fix up the home they live in, and there is a real possibility that more people may be staying put for 2021 and enjoying the fruits of their labors. In the coming months, buyers will need to be prepared to compromise on their must haves and act fast if they see something that meets most of their wish list. And of course sellers, please reach out to me right away if you are thinking of selling this spring. Interest rates are low, prices are up and demand is high – there has never been a better time to sell.
As 2020 comes to a close, I wish you all a fabulous holiday season. It has been my great pleasure to work with so many in our community during this unusual pandemic year and I am looking forward to continuing to do so in 2021, a year we all have high hopes for! The Herald will not be published over the holidays, but you can check out my website, www.AskKathe.com, for continued real estate advice every week!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
How important do you think it is to have a visual tour as part of marketing a home in today’s home selling environment?
Visual tours are an essential part of every home sale. National Association of Realtor studies show that the majority of all home buyers start their search online, and almost all buyers will ultimately make online shopping a part of their home buying process. So while print media remains an important piece of any marketing campaign, it is critical that your online presence be top notch.
A premier online marketing campaign begins of course with professional quality photos. Wondering how important this really is? Spend an hour perusing the local listings online and check out the difference between the photography of agents who clearly employ a professional and those who do not – those with professional photos really stand out!
Once online, the more time a buyer spends viewing your home, the greater likelihood they will develop an interest in coming to see it. We consider every online viewing the same as an in-person showing – it is the initial visit by which a buyer will give your home a preliminary thumbs up or thumbs down. A visual tour is an important piece of that online viewing – with a visual tour available, a buyer will spend more time considering your home. I personally narrate all of my visual tours, giving the buyer even more information about your home, which will hopefully peak their interest in coming to take a look. Visual tours are also easily shared with friends and family. These days, buyers are eager to know what their most trusted circle thinks – and having a beautifully presented visual tour will make it easy for them to solicit that support.
The internet is a tremendous asset to home sellers when used effectively. Not only does it allow you to cast a wider net and be seen by exponentially more prospective buyers than ever before, but it allows the buyers to make an initial decision about whether your home is a contender, which saves everyone a lot of time. When done well, a visual tour can help put your home on the list of contenders, and ultimately help make it the chosen one!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Our home is on the market – is it ok to show it decorated for the holidays or should we take it off the market?
Buyers who are shopping during the holidays are some of the most serious buyers we see each year – most people don’t bother spending their precious holiday time looking at homes unless they have a need to buy. So keeping your home on the market over the holidays is generally a good idea!
Decorating for the holidays while your home is on the market is also not a bad idea – homes often look their best decorated for the holidays – as long as a few basic guidelines are followed. Briefly stated, when decorating this holiday season, keep your decorations more neutral and reasonably simple.
Start by taking a more minimalist approach. You may have bins and bins of holiday decorations like I do, but when your home is on the market, its best to leave some of those decorations packed away. Choose decorations that have less of a religious theme. Snowmen, evergreen wreaths, poinsettias and nutcrackers, for example, have broad appeal. Be careful that the decorations that you do choose compliment your décor. You may have changed the color scheme in your home since buying your holiday decorations and it’s important that they don’t clash! Don’t over-decorate the exterior of your home either. A few well placed, tasteful strands of lights or an attractive evergreen wreath can add sense of warmth to your home, but keep your inflatables packed up!
If you bring in a tree, make sure it doesn’t overwhelm the room. This year a tall, skinny tree might be the best choice so that the room doesn’t feel small. And of course, consider using decorations to highlight some of your home’s special architectural features, such as using candles to draw attention to an attractive fireplace.
When showings are scheduled, a brewing pot of mulled cider or a plate of freshly baked cookies is not only seasonably appropriate but will go a long way toward creating an inviting feel for your buyers. And don’t forget – even if you normally keep your thermostat down, be sure to turn it up for showings so that buyers are comfortably warm!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
I’ve heard a lot about having my home professionally staged – I think my home is well decorated – is it something I need to do?
Home staging is more about marketing a home and less about interior design. Your home could be beautifully decorated and poorly staged. The distinction is critical if your main focus is getting your home sold. Interior design is often about creating a home that reflects you personally and showcases your personal effects. Home staging is about decluttering, neutralizing and showing off your home’s best qualities. It is after all, your home that you are selling, and not your stuff!
Home staging consultations generally cost less than $400 and are well worth the investment when you consider the size of the asset you are selling and your hoped for gains. Home stagers often stage hundreds of homes each year and are very familiar with how to tweak a home to make it as appealing as possible to today’s buyers. We’ve all heard stories about home sellers in California who pack their entire homes up and bring in a new home of rented furniture to stage the home to sell. Home staging does not have to involve renting expensive furniture. It is sometimes an excellent idea however—if you bought your “dream home” and didn’t have time to furnish it with furniture appropriate to the home’s value, for example, renting furniture is likely a sound investment and will give the home the feeling that it is of a higher caliber. Most of the time, however, a home stager will work with what you have, although some of it may find its way into storage for the duration!
Offended at the concept of stripping your decorating from your home? It is important to keep your end goal in mind – you are moving. This is not about impressing your friends. It’s about showcasing your home so that prospective buyers appreciate all that it has to offer. A home’s positive attributes are often missed buyers when they are too busy focusing on your stuff. Whether they like your stuff or not, you want them admiring your home – not what you have in it. Home staging is designed to make your home – that which you intend to leave behind – sparkle – a stager eliminates, rearranges and augments to enhance the impression buyers have of your home. So yes, no matter how beautiful your décor, I strongly recommend a home stager, and working with your agent as you implement what she recommends!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Do you think living in a top ten school district adds value to our homes?
Absolutely! There is no doubt in my mind that living in the Quaker Valley School District, ranked in the top ten in Western Pennsylvania, adds both value and sale-ability to our homes. We are fortunate to live in a district with well state-of-the-art elementary and middle schools and a hard-working board that continue to work to keep the caliber of our schools at a very high level.
How do these impressive rankings translate into more money for you? Families moving into Pittsburgh have been a significant force behind our home sales for decades. Buyers with children almost universally start their home search considering school districts. Our school district not only offers top numbers, but it is small and can afford more personal interactions between families and faculty. This personal touch makes Quaker Valley both unique and a highly sought-after school district for people moving to Pittsburgh.
Relocation buyers are not our only customers. We see dozens of home sales each year to families living in other Pittsburgh communities where the school districts are not as acclaimed looking to improve the educational opportunities for their children. Pittsburgh neighborhoods that seemed fun and exciting to DINKS give way to sensible communities with outstanding schools like Quaker Valley once kids come along.
And yet we are a small community, with limited housing options. As our educational performance continues to shine, living in Quaker Valley continues to be a strong draw for buyers coming from both near and far, and yet we only have so many places to house these buyers. The increased demand for housing in the District has continued to push our housing prices up, and that has become particularly evident in some of our more affordable price brackets, which are feeling less affordable each year.
So yes, absolutely – living in such a highly acclaimed school district is a very important component of housing value and driving more and more families to explore the possibility of living here. Despite our new construction, the very limited nature of our housing inventory, when combined with the strong demand resulting from the excellent reputation our school district has maintained, is continuing to put strong upward pressure on our housing values.
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Now that fall is here, do you have any tips for presenting our home well in the fall market?
Fall can be such a wonderful season here in Pittsburgh, but sometimes sellers forget that they need to take a fresh look at their home to make sure it is still presenting at its best as summer ends. Start with your yard. It’s the first thing a buyer sees! Make sure you have trimmed away all of Summer’s dead blooms and that your garden beds are looking ready for their long winter’s nap. Put down fall fertilizer so your yard looks great again this coming spring! Be sure to give your lawn its final mow, and as we move into fall, keep your leaves raked!
Don’t forget to keep your gutters clean – if your home is actively on the market, you may need to do it more than once – you don’t want a buyer to see clogged gutters and mini-trees emerging! Give porches and patios a final thorough cleaning. If your windows aren’t really clean, get that done too – as we go into our grayer time of the year, its really important to get as much sunshine inside as possible!
Inside, check all of your lightbulbs and make sure they are all at the maximum possible wattage and in good working order. As days grow shorter, it will be important for your home to be bright and cheerful inside. Clean out your garage. You will need it once snow flies, and you won’t want to be out there in 30 degree weather! Be sure that if you choose seasonal decorations like mums or wreaths, that you remember to rotate them as we move through the season so that you reflect the current season!
And of course, if you know now that you want to list in the coming Spring season, which kicks off in January, give me a call now so we can get photography done while there are still leaves on the trees!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We hear that selling a home can be a trying process. They say forewarned is forearmed. Any annoyances a seller should be expecting?
Below is a short list of many of the “joys” sellers might experience during the listing process. Being aware that these are possibilities will hopefully help you take them in good humor if they happen to you!
The agent showing your home will miss appointments and not call or show up.
Appointments will be made and cancelled at the last minute.
Some showings will last about five minutes and some will last 3 hours.
Agents showing your home will forget to turn lights off.
Agents showing your home will let your pets out (best to remove them from your home for showings) or your neighbor’s pet in.
Agents will provide unhelpful feedback – buyers buy homes when they attach emotionally to a home and when they don’t, their feedback is often nonsensical.
Agents will not provide any feedback – incredibly annoying, I know.
Expect lowball offers (at least it is a starting point).
Things will come up on the inspection that you had no idea were wrong with your home and you will be sure the inspector made a mistake or the buyer will make ridiculous inspection requests. Remember this easy rule of thumb – if the requests total less than 1% of the sales price, its usually best to agree to the requests, regardless of how ridiculous they might be.
The buyer will ask to bring in contractors for estimates for work they want to do after the closing at the seemingly most inconvenient times.
The property might not appraise at what you are selling it for – with the hot market we are in and with homes often selling in bidding wars with multiple offers, there is a risk you might have to make a downward adjustment in your sales price.
The closing date on the contract may change. Again, lenders are overwhelmed right now and \many closings have been delayed, sometimes for a week or more. This does not mean that your buyer cannot buy your home – it just means lenders are overwhelmed and missing deadlines – be prepared to be patient.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offer?
Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value. If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home. Your bank will need your new home to appraise so that your debt percentage is not greater than 80%. If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.
If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price. While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.
There is a definite risk that in a hot market you could overpay for a home. Homes are in some circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home. Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We have been waiting for a while for some new homes to come on the market –are you anticipating more listings soon?
It has in fact been a very active summer season and it sure does feel like inventory is very low. In fact, we currently have ONLY 82 listings available for sale in the Quaker Valley School District – in most years that number would be approximately 200! So when we say that we need listings, we mean it!
Yes, we do expect that there will be more homes coming on the market in the new year. While March & April tend to be our largest listing months every year, we have had a few introductions recently and as a general rule they have flown off the market. We have a tremendous amount of pent up demand. There are dozens of buyers in every price range sitting on the fence waiting for their “perfect” listing. If you are one of those buyers, you should expect that you will have some stiff competition as we are seeing bidding wars with multiple offers in many price ranges. So make sure you have your financing in order and be prepared to move quickly if you see something that looks like it could work.
If you are one of the many Village dreamers we have out there, start thinking now about what compromises you might be willing to make to get a home. As Pittsburgh grows, our inventory is not keeping up with housing demands and we will continue to see a tighter and tighter housing market and increasing prices. Compromise will be necessary to even get into a home here.
Finally, if you are thinking of selling your home, I have said it many times before, but PLEASE reach out to me! I offer completely confidential consultations and strategic plans to maximize your returns, with a nearly 22-year proven track record. There is no better time to be selling your home!
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Should we get a survey in connection with our new home purchase or can we rely on the seller’s old survey?
Often buyers do not order a survey of their new home and while this saves a buyer at least $400 – $500, ordering a new survey when you buy a home is a good investment. Surveys are valuable because they will show you whether there are any boundary issues with the property that might be expensive to fix later. For example, the neighbor may have built his new shed slightly over the property line. Getting that fixed might strain neighbor relations and cost you money. Better to let the current owner handle it before closing. Surveys can also reveal undisclosed easements across your property. You might find out that the neighbor has the legal right to have their driveway on a piece of your property or that the neighbor has a right to use your driveway to get to their property. While you may be ok with shared use, it is certainly something you want to make an informed decision about and not something you want to find out after the fact.
Surveys are also valuable because they show you where you can build and where you can install items such as decks, patios, pools and sheds. These can be expensive to undo if you make a mistake and end up on your neighbor’s property – better to make an upfront investment in a survey and get it right the first time. Surveys are essential if you are planning to install a fence or invisible fence. In these situations its actually an excellent idea to have the surveyor return to “stake” the property line so that you are certain you don’t put your fence on your neighbor’s land.
Finally, without a survey, at closing your title insurance company will issue a policy with “survey exceptions,” meaning that if you later find out there is an issue, the title insurance policy will not pay to resolve the issue. In order to get the best possible title insurance coverage, it is important to get a new survey.
When you are moving toward closing on your new home your settlement company will ask you whether you want a survey and I recommend that you respond yes!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
How long should a seller wait to reduce the price of their home? Is it ok to start at a higher price and reduce the price later?
There are many “rules of thumb” in real estate that provide suggestions as to when a price reduction is appropriate. One of the most common is after “13 weeks or 13 showings.” In other words, if your home has been on the market for at least 13 weeks, or if it has had at least 13 showings, and you haven’t received an offer, there is a good possibility that it is priced too high and should be adjusted. However, there are many scenarios in which a price reduction is not warranted. First, you need to consider whether there are any buyers in your market segment. If other homes are selling readily and your home is not, then you need to re-evaluate your price. However, if nothing is selling and there are just no serious buyers in the market, then reducing your price is unlikely to spur on a sale. You also have to consider whether there are factors that are holding back your sale that could be corrected for less money than you would lose by reducing your price. For example, if your home has dated carpeting or wallpaper, it may be more cost effective to change the carpet or remove the wallpaper. Reducing the price is unlikely to incent a buyer to take down your wallpaper or change out the carpeting — no one wants to do the work these days, so it might just fall on you in order to draw the offer. Additionally, if your home is in need of a more significant renovation, such as a new kitchen, reducing the price is not necessarily solving the problem – you are just putting your home in a pool of less qualified buyers who also probably don’t want to take on the project. In this scenario your two best options are either to reduce to below market so a buyer senses a deal and is willing to take on the project, or be patient and wait (the months or years) for a buyer to come along who appreciates your house as it is. Generally speaking, it’s a far better plan to price correctly out of the gate than to push the market and have to reduce later. If you take a more conservative approach to pricing, you also have a good chance of a bidding war. Reducing later is highly unlikely to bring buyers who have previously considered your home back to the table – they have moved on. Even the 13 weeks may be too long if there are strong market signals that you came on too high. My best advice is to trust the judgment of a local real estate professional when it comes to pricing – you only have one chance to make a first impression!
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Selling our homes seems like it will be a very stressful endeavor. Is there any way to make it any easier on us?
Once you have lived long enough, you realize that if there is something to be done, there is usually an easy way and a hard way. When it comes to selling your home, why not make it easy? If you make it easy, you are far likelier to have a successful transaction.
First and foremost, make access to your home easy for buyers. Use a lockbox and always be ready to show. Busy agents with serious buyers don’t have time to track down keys held by listing agents, or worse yet, schedule showings around your listing agent’s schedule. You can’t sell if you don’t show – make it easy with lockbox access (which notifies your agent immediately every time it is accessed) and be ready to accommodate last minute showing requests.
Make negotiations easy. When you do receive an offer, do not get upset or offended. Every buyer approaches negotiations differently. Some will need to give you long letters explaining their analysis of value. Don’t take it personally – just understand that it is a unique opportunity to understand how buyers perceive your home. If one buyer is bold enough to tell you, the chances are there are others with the same concerns. While you likely put your heart into the home, you are leaving and need to detach. Be pleasant and non-defensive in your response and try to focus on the one or two points in the offer that concern you the most. The more flexible and good-natured you appear, the easier it will be to get and keep the buyer in the deal. Be easy to reach during negotiations as well. The more protracted the negotiations, the greater the chance the buyer’s interest will wane and you will lose the deal.
Make inspections easy. I have said this many, many times, but if there are conditions that exist that are called out by the inspector and they were not on your disclosure, you should expect to pay for them or lose your deal. You can make this very easy on both you and the buyer – have your home pre-inspected – then a buyer can make an offer knowing the condition at the time of offer and you should sail through the inspection.
Sound easy? It is! Keeping these simple concepts in mind will make your home sale much easier.
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[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We are ready to put our home on the market but are private people and would prefer not to have the home in the MLS. Could you just show it if you hear of a prospective buyer?
I may be repeating myself here, but in this hot spring market, it really is an important message. There is simply nothing more powerful for driving in a high offer for your home than listing it with a real estate agent who is fully engaged in the marketing and selling of your home! Yes, you did ask a realtor, so you probably expected that answer, but here’s why.
First, Sewickley loves a secret sale. Everyone loves knowing what no one else knows yet, and buyers feel really special if they get the first chance at your home. But that secret sale is unlikely to drive in your best offer. What credibility do you as a seller have for pricing your own home? All homeowners love their homes and most feel they are worth more than the comparable sales. A real estate agent with a proven track record for pricing homes correctly is going to add an air of credibility to your asking price.
Buyers at secret sales will also automatically go for the “you don’t have a realtor” discount. In other words, you are saving nothing by not listing your home with an agent – the buyers will discount their offer to you based on what they think you would have spent in commissions. So your net will be the same (at best) as if you did have a realtor and yet you don’t have an advocate on your side helping you through all of the tricky scenarios that come up in selling a home.
Secret sales are also just that – they are not publicized city wide. There could be a buyer in the South Hills waiting for a home like yours and without a full market press, they will probably never find your home and may buy another, frustrated that “nothing” is on the market.
But most important of all – buyers at secret sales don’t feel the market pressure that a real estate agent can bring to your home. If there is a potentially interested buyer and they see your home marketed absolutely everywhere, they will assume that there are many other buyers out there and they are more likely to succumb to the pressure of the market and perceived competition and pay you more. If it is a secret sale, they can take their time, think carefully, and ultimately will either talk themselves out of buying altogether or talk themselves down in price. Neither is a good answer for you.
So don’t take any chances – if you are serious about selling, list your home with an experienced full time agent and engage the power of our larger market to drive in your best deal. Give me a call today and we can develop a strategy that is tailored to your specific needs and goals!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Our neighbor just had to replace their sewer line – is that a common home inspection repair?
Sewer lines have become as radon was 20 years ago – today’s hot button for home buyers. In some boroughs (Mt Lebanon, for example) the borough now requires that before a home seller can transfer ownership, the sewer line must be scoped and must be without issues. Here in the Sewickley area, we do not have any boroughs imposing any such requirement on home sellers, but many buyers today do have a scope performed of the sewer line as part of their home inspection. And yes, if issues are discovered, they do expect the seller to remedy them. If a sewer line needs to be replaced, the cost will likely be between $5,000 and $10,000.
Sewer lines are not something we think about on a daily basis. As long as we don’t have back-ups, we assume that all is well with the line. But this is not necessarily the case. With older homes, sewer lines were made of terracotta pipe and this can break easily and can also be easily infiltrated by tree roots. If you live in an older home and haven’t replaced your sewer line, there is a good chance you have some issues.
Paying for a sewer camera test is not anyone’s idea of a good time, but if you are contemplating a sale of your home, it is probably a smart, pro-active thing to do. If you discover a problem in advance, there may be some cost-effective options for you to solve the problem without a full replacement of the line. Sewer lines can often by lined with a plastic liner. Tree roots can often by removed by hydrojetting. If you wait for a buyer to perform the test, you may get stuck with a full new line — the buyer might not accept one of the compromise options. So its best to explore the sewer line now, before it becomes an issue, and make any needed corrections.
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We’ve been thinking about starting our search for a new home but were wondering if we should wait until more homes come on the market this spring?
The spring market is here (although with the forecasted low temps for this week it may slow things down a bit)! Buyers are definitely buying right now, so if you think a move is in your future, despite the cold temperatures, the time to get started is now! We have seen homes that have been sitting for months go under agreement in the past couple of weeks, some with multiple offers, and our inventory is dwindling. We still have many nice options available for you to consider, and this is a far better time to buy than March, April or May.
Why, you may wonder? We have such a severe inventory shortage with lines and lines of buyers waiting for homes to come on the market. Many homes are selling in just a couple of days, before many buyers have a chance to get out and take a look. As we head into spring this will only get worse. While none of us have crystal balls, there does not appear to be an avalanche of inventory coming on the market in the coming weeks. I expect by March 1st the bidding wars will begin in earnest for well-conditioned, well-priced homes. (As a side note, even with the inventory shortage that we have now had for well over a year, this is Pittsburgh and not California – buyers still exercise a healthy dose of common sense in making their buying choices and don’t tend to overpay – it is still important to price based on historic sales and not exceed recommended pricing by sizeable amounts). If you don’t want to end up in a bidding war, where there can only be one winner and it may not be you, shop now and avoid the crowd! You may very well get a better deal than you could on the same house in another month!
In doing so, be sure to follow the advice passed on in prior columns (you can refresh your memory on my blog where these columns are posted each week –see www.AskKathe.com). Be SURE that you are pre-approved so that when you are ready to buy, you don’t have to waste precious time with this necessary step. When you do this, be sure your credit is good or clean up any issues and reestablish good credit. Give me a call so we can get you set up to be notified of all new listings immediately! And if you might consider selling your home, call me today! We have lines and lines of buyer prospects for your home!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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.
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
It’s a new year and we’re ready for a new home! What should we do first?
Well, you are asking a Realtor that question, so the answer is probably expected! The first thing you should do is call me! Once you have done that, here is a look at what comes next! First, we will meet and determine the likely value of your home in the current market. The market is quite fluid and values move up and down depending on supply. Currently we have had very low inventory for an extended period of time and buyers are getting very frustrated, so it is possible that we may see an uptick in values again this spring. When we meet we will also review all of the many ways I will be marketing your home and the timetable for rolling out the marketing to optimize your result.
Once we set a timetable that works for you, you will want to spend some time “staging” your home. At the most fundamental level, this would involve you “de-cluttering” your home. It’s amazing how quickly we will our closets, basements and attics! Movers are not cheap – you do not want to move more than you know you will want to keep. So now is the ideal time to start the clean-out. In fact, we sometimes have closings as quickly as 3 weeks after an offer is presented, so it is best to assume that you will not have much time to pack later and do the clean-out up-front. This will also help your home show off its spaciousness and storage capabilities! If you are saving things for others (such as the pile of furniture I have stored in my basement for my adult children who I am sure are going to want my 30 year old furnishings someday!), then it would be advisable to find an off-site storage facility and move those items from your home (or more realistically, I would be happy to connect you to charities to come pick them up and give you a tax deduction in exchange – the reality is that those we save for probably really don’t want our stuff anyhow!) If this all seems incredibly overwhelming to you (and you’re thinking you would rather stay put than face the inevitable clean out), I would be happy to connect you to a home organizer that can take on as little or as much as you don’t want to do!
Once you feel you are “de-cluttered,” the next step toward selling your home would be to determine whether any repairs or improvements are needed or recommended. I am happy to walk through your home with you in advance of your listing date and discuss what you might consider addressing and its likely impact on your bottom line. Not ever seller wants to make repairs and improvements and ultimately that choice is yours, but the market data I will provide to you will help you decide whether its worth it to you to make the additional investment in your home. If repairs are not possible, we will work on using the disclosure to make sure you are sharing the items upfront with the buyer and pricing accordingly. This will protect you later from costly repairs if the inspector is the one to raise the issues.
It’s a lot to do, but together we can make your 2019 real estate goals a reality!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Now that Christmas is behind us, we are thinking about making a housing change in 2019. What is the optimal timing?
The strength of our early spring market is always weather dependent here in sunny Pittsburgh! In a “normal” winter our spring market starts in earnest in mid-January. Certainly by February you would want your home on the market if you are seeking a spring sale. Our early spring buyers (January, February and March) tend to be our best, especially following a period of such unheard of inventory lows. There is currently a long line of buyers eagerly waiting for new market introductions – the competition will likely be great in the early months of our new year, maybe even driving in more of the bidding wars we saw this past fall.
Of course, the interest rates have climbed steadily throughout 2018 and that may put a bit of a damper on rising prices in 2019 – but if inventory remains as low as it has been in 2018, the impact should be minimal. And if we have a rough winter, as some predict, it may slow the start of our spring market. But of course, we won’t know that until we are in the thick of it.
All things considered, my best advice to you is to give me a call today so that we can design a strategy that is best for your family and your personal goals. Being ready to go in the spring market as soon as it starts to show signs of life, be it January, February or March, will inure to your benefit!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We need to replace appliances – any recommendations?
When choosing new appliances, my first recommendation is that you choose Energy Star certified appliances for several reasons. First – check with your electric supplier before you shop, but rebates are available from many electric companies (Duquesne Light is one) when you purchase designated Energy Star appliances. Second – you will save money every month on your electric bills. Third – and most important from my perspective – younger buyers tend to be concerned about energy efficiency and often ask for utility bill information on homes they are considering. Energy efficient appliances are a selling point and will enhance the value of your home (don’t forget to point that out when you list!) As more young buyers enter our buying market (and they are buying across all price ranges), this could be an important differentiator for your home.
I still recommend that you choose stainless appliances. While there are many options out there including some pretty interesting colors, I still see buyers responding most favorably to stainless. Sure, they might be harder to care for (you will need a can of stainless polish in your cleaning cupboard), but the look is still quite appealing and “professional.” There is, however, one circumstance when I do not recommend stainless for replacement appliances. If your kitchen has another color appliances (white or black, for example) I do not recommend replacing only one appliance with stainless. If there is one thing buyers uniformly dislike it is mismatched appliances (in color – mixing brands is fine). So if you currently have white appliances and don’t think you will be replacing the other appliances soon, stick with white. Even though white (or black) does not have the same appeal that stainless does, a kitchen with two white (or black) appliances and one stainless is the least appealing of all!
Finally, it is worth noting that it is more the look than the brand that is important to buyers. As much as we all like to think the high end brands are important to people its not what I am seeing on the selling side. If the appliance has a good look, buyers are not stopping to ask what the brand name is! So choose the brand that appeals to you – be it a budget decision or a features decision – and enjoy it while you are still in the home!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Now that the holiday’s are approaching, should we take our home off the market and give it a rest until spring?
It’s a well established myth that our market slows down over the holidays! While it might be true that we (happily) transact very little business on Thanksgiving Day or Christmas Day, the fall and winter months are no less vibrant than most other months!
An historic review of our market here in the Quaker Valley School District reveals, as you might have guessed, that March, April and May are our strongest months for homes going under agreement. However, when it comes to the remaining nine months, when reviewing a multi-year cross section of data it is clear that they are nearly even in the number of sales that happen each month. Yes, there are occasionally months like this past September when very few sales are transacted, and we are never really sure why that happens (anxiety over impending midterms perhaps?) But taking a long term view of the market it is clear that the market is just as strong in November as it is in July.
Additionally, while there are more home sales in March, April and May, there will also be significantly more competition. We have yet to abolish the notion that spring is the best time to list your home, and so many sellers (who don’t read my articles) are shooting for a “spring” market entry (and often miss the mark as spring means coming on in February, not May!) If your home is currently on the market, my best advice is to stay the course – there is very little for buyers to choose from right now and there will be offers made on homes in the next few months – yours could be the one that sells!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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
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!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
As a home seller, are there inspection type items that we are simply going to be stuck addressing?
Who can forget the old childhood game – pass the hot potato? The object, of course, was to not be holding the hot potato when the music stops. We have our fair share of “hot potatoes” in real estate too, and just like in the childhood game, someone always gets stuck holding the hot potato.
You may wonder, what are these hot potatoes of which I write? Years ago, it was radon. If you were selling your home and it had radon levels in excess of the EPA limit of 4.0 pCi/L, you got stuck paying the remediation bill (usually less than $1000) because a buyer isn’t going to agree to buy a home with a radon problem. That hasn’t changed, but if a home has sold in recent years and ever had radon, chances are it has been remediated.
Next, the media exploded with stories of illness caused by mold in homes and suddenly, sellers were faced with mold inspections. There is the very bad black mold (Stachybotrs), but honestly, all molds have the potential to make you sick. As you can imagine, buyers aren’t going to buy a home with a mold problem either, and once again, the seller bears the cost of remediation and often, the cost to solve the cause of the mold problem as well. The cost can be several hundred to several thousand dollars.
These days, the hot potatoes have expanded to include two tricky electrical issues. Pushmatic electrical panel boxes are very expensive to maintain and the manufacturer is no longer in business. Most buyers will require a seller to replace these panel boxes – the cost per panel is generally $1500+. Knob and tube wiring is the other big hot potato for homes built before 1930. Rewiring an entire home can range between $10,000 – $20,000 and so many homes retain this original wiring. Most insurance companies will no longer issue new insurance policies on homes with this antiquated wiring. Therefore, if knob and tube wiring is discovered on an inspection, the cost of the rewire also generally falls to the seller – very few buyers are willing to buy a home (at least not unless they are getting a substantial discount) if it has knob & tube wiring present.
If you own a home with one of these hot potatoes – radon, mold, pushmatic panel or knob & tube wiring – things that years ago wouldn’t have raised an eyebrow – you should expect that when you go to sell your home, you will be stuck with the cost of getting rid of the hot potato, if you haven’t already done so!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
After renovating our 100+ year home inside and out, all that remains is our basement. Our stone foundation is in decent shape. 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 still 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. I do not recommend painting walls with dryloc, however. Paint is food for mold and this might only cause more problems!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We’ve noticed interest rates are rising on mortgages. What effect do you think that will have on our market?
You are correct – the fed raised the interest rates AGAIN this year, and have indicated that we need to be prepared for two more rate increases in 2018. Those increases are expected in September and December and many forecasters are expecting that rates will be over 5% by 2019. The economy has been incredibly strong and unemployment is lower than it’s been since the 1960s (excepting one month in 2000). With a surging economy, the fed is forced to raise rates in an attempt to keep investors interested in mortgages, control inflation and avoid a possible future economic crash. Rates are ¾ point higher than they were last year. Nonetheless, historically 6% is considered an excellent interest rate and they are still well below that!
With all of that in mind, today is as good as its going to get for years to come for mortgage interest rates. So don’t procrastinate any longer! If you are thinking of a move, there is no better time than now to find a new home and lock in your interest rate. In September you will likely pay more for the same house over the life of your loan than you would if you bought it roday. What impact will these rising rates have on the market? Some buyers will not be able to afford a home that they could have afforded previously – as rates rise all borrowers will qualify to borrow less and that lower number may or may not be enough for you to be able to buy the home of your dreams. All buyers will pay more for their homes over the life of the loan than the could have had they purchased earlier. Ultimately, higher rates could depress home values as buyers can afford less, but I do not see that happening in this market. We just do not have enough inventory for rising rates to depress home prices…yet. But if we ever bring supply in line with demand again, we may see rising rates soften home values.
Of course, as rates rise it becomes very important to shop your loan product. Those who get two lender estimates save on average $1500 upfront and those that get 5 save $3000 upfront on average. Most buyers will take the time to shop around for a new car, so why not take the same approach toward your mortgage. With rising rates, you will appreciate the upfront savings!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
I’ve heard that agreements on many homes have fallen through lately from home inspections – why is that?
Our market has traditionally been one where buyers know they are buying old homes and allow the seller some leeway in not presenting a “perfect” home from an inspection standpoint. However, in many parts of the country, this is not the case. Sellers are expected to remedy all issues noted by home inspectors prior to closing. As more and more people migrate here from other parts of the country, our prices are going up, but so are the buyers’ expectations as to a seller’s responsibility for concerns discovered on a home inspection. At the same time, inspectors are getting significantly more particular. And so yes, it is absolutely possible to have purchased a home only two years ago and have new concerns arise that clearly existed and were overlooked when you bought your home. And yes, it is equally possible that you will be expected to fix them and if you refuse, your sale might fall through.
This can often leave a seller feeling like they are the unlucky one who got stuck holding the “hot potato.” As the years pass, the list of “hot button” issues mounts and if you are the owner when the issue is discovered, you will be the one paying the bill even though the home was bought and sold many times in advance of your ownership. These hot button issues include items such as radon, mold, damp basements, lead water lines, asbestos (fireplace inserts, duct tape, pipe wrap or flooring) knob and tube wiring and pushmatic electric panels. If your home has any of these issues, you should figure you will be the one footing the bill and address them before they become an issue on a home inspection.
The best way to prevent an inspection fall through or an unexpected bill for defects is to have your home inspected before you put it on the market. A pre-inspection will allow you the opportunity to fix those items that can be fixed and disclose the rest to save yourself from a laundry list of requests. Be sure not to ignore the small stuff that comes up or that you know is wrong. For example, when I list a home, I specifically ask sellers if all of their windows open, stay open, shut and lock, and if any are cracked or have broken seals. Sellers more often than not disclose no issues with their windows and yet it is one of the most frequent inspection deficiencies. Take the time to do your homework – get your home inspected – repair or disclose any possible concerns – and save yourself from a long last-minute repair list and potentially even from losing your sale.
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We’ve been patiently waiting for a home in the Village – prices seem to be going up and we still haven’t found anything. Any advice? Should we consider Wexford?
We are in the middle of a very long inventory shortage. April is almost here and we may see more homes come on the market (I sure hope so), but it would take 100+ homes to hit he market in the next few weeks to even begin to address our inventory shortage. That shortage is region wide – there is no magic to looking in other areas – inventory is low across our entire area right now. That said, why not give some serious consideration to homes in Sewickley that are not in the Village?
Sewickley homes located “up the hill” offer many of the same advantages as Village homes! Their owners feel a part of our community and can take advantage of our exceptional school district. But “up the hill homes offer many benefits that are harder to find in Village homes.
“Up the hill” homes are typically on significantly larger lots than those in the Village – more space for Fido and the kids to play!
As a result of the larger lots, “up the hill” homes typically offer much more privacy – you won’t know your neighbor’s every move!
“Up the hill” homes tend to be much newer, which means they have more updated floor plans, larger closets, more and larger garages.
Because they are newer, “up the hill” homes tend to require far less maintenance as their plumbing, wiring and HVAC are modern, which means more money for fun things like vacations!
In an “up the hill” home your kids can’t wander off into the Village without you being aware!
“Up the hill” homes usually offer a much better value – you will get a bigger home on a bigger lot in more updated condition for less money than you could buy in the Village!
Don’t give up on Sewickley – we have many wonderful homes—just broaden your horizons and take a look “up the hill.” Check out the two below, or call me if you would like to know more! 412.779.6060
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
With the weather starting to warm up outside, any tips for selling our home?
Spring is in fact on it’s way! The bright sunshine and warming temperatures will unlock our yards from their winter nap soon and it’s a great time to be focused on making sure the outside of your home looking great for prospective buyers. Curb appeal is critical to attract buyers – if your home doesn’t look great from the street, buyers (who often drive by before making an appointment to see a home) may decide they aren’t interested before stepping inside. Start with the front of your home and work your way back to your non-public spaces. On our sunny days, head outside and make sure you have cleaned out your beds from the fall. Rake out any leaves, trim back shrubs. Order fresh mulch to be delivered the first week in April. Keep an eye out for pansies when you are at the store and add them to planters out front. In early April review your lawn and make sure it is in good shape. If there are bare spots, have them reseeded. If you have large trees on your property, make sure they are all healthy and any dead limbs are removed.
This is also a great time to make sure your gutters are clean – gutters full of leaves suggest a homeowner isn’t up on their maintenance. Also be sure to have your windows cleaned inside and out. With the sun streaming in through the windows, squeaky clean windows are very appealing to a buyer. Take the time to put out your outdoor furniture and any warm weather yard items (such as planters). Be sure patios and porches are well swept. Step back from your home and see whether your paint is in good shape- – if there are areas that are peeling, have the scraped and repainted. Be sure the front door is clean and nicely painted. Remove all seasonal décor (Christmas wreaths and lights). Ask a friend to stop by and do a quick walk-around for any areas that need attention – a fresh eye is always likely to catch those things you have gotten used to and overlook.
The spring market is in full swing! Take advantage of the next few weeks and make sure your home is well-prepared for the strongest market of the year! If I can be of any service answering any of your real estate needs, please feel free to get in touch with me. Real estate is what I do!! Kathe Barge, Call or Text 412.779.6060
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
What rights do sellers have to keep buyers in a home sale agreement, once they put a home under agreement? If the buyer back’s out, do we get to keep their hand money?
Assuming the standard Pennsylvania Agreement of Sale is used to sell a home, a home seller has very few rights to keep a buyer in that agreement. First, any home inspection contingencies must be satisfied. Unfortunately, unless modified, buyers have the absolute right to terminate the agreement if there is anything at all on the home inspection that they are dissatisfied with, even if a seller is willing to repair that item or items. Nothing is more disheartening for a home seller than to put their home under agreement, only to lose the deal because of inspection concerns. This is a result that can be mitigated by home sellers. All home sellers can, and should, have their homes pre-inspected to help avoid the inspection termination scenario. Yes, if the inspector finds issues, they need to be repaired or disclosed. But this will be the case anyhow once the buyer finds them, and they will! All too many home sellers adopt the position “we’ll address that if the buyer asks.” The problem with that approach is that a seller may never get the ask – they may just get the termination letter.
Once the inspection hurdle is overcome, there may be additional contingencies that buyers have to overcome before a seller is close to having a secure agreement. A buyer may have to get financing, and if they place a mortgage contingency in the agreement and a lender refuses to give them a loan for any reason, they can terminate the deal. The most frequent cause of mortgage issues is a failure to appraise. An appraisal contingency can be a contingency in its own right, and if a home fails to appraise, the buyer will have the right to terminate the agreement. In this market of low supply and high demand, some sellers of premium properties are extracting market high prices for their homes and appraisal failures are a real risk. If this happens, a seller will need to consider whether to reduce the price or put the home back on the market.
Whenever a buyer terminates under a contingency contained in an agreement, the buyer receives a full return of the hand money and the seller’s only recourse is to put the home back on the market. So sellers, do yourself a favor, pre-inspect your homes. The $500 you will spend is the best insurance policy your money can be in maximizing your chances for a successful sale!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
What is going on in our market? It seems things are selling fast!
A very brief update on the status of our housing market: as predicted, our low inventory for the past several months has created a log jam in our housing market. As of today we have only 66 homes in our active inventory, while the norm this time of year is closer to 200! Dozens of buyers are lined up in every price range waiting for their perfect home to come on the market. As a result, new introductions in the Village are selling close to or at asking price, and more often than not, without a mortgage contingency. Many are receiving multiple offers. Buyers participating in this market feel like it is the California market here in Sewickley!
Why is this happening? It’s hard to say. The inventory shortage extends across most of the communities in our area that sit in a top rated school district. People are just not moving out. This could be caused by the fact that there are extremely limited options for “downsizing” if you are in your empty nester years. It could be that Pittsburgh has been steadily growing for years and it is just catching up to us. It could be that we cut new housing starts too sharply after the recession and we aren’t keeping up with demand.
What should a buyer do in today’s market? First, get yourself fully pre-approved (not just prequalified) if you need a mortgage. You need to get comfortable with the fact that you might have to waive your mortgage and appraisal contingencies. Second, be ready to make a very fast decision if a home comes on the market – do not expect that you will have more than a day to decide. It is very much a seller’s market and not a good market at all if you are buying, but if you need a house, it’s the market you are in. Consider looking “up the hill” – we have some amazing homes available offering great living space at significantly better values.
And once again, if you are thinking of selling, give me a call right away and lets design a strategy to maximize your return in this amazing seller’s market! Put my 19 years of full-time experience and dedication selling Sewickley’s wonderful homes to work for your personal benefit!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We have been waiting for a while for some new homes to come on the market –are you anticipating more listings soon?
It has in fact been a long, dry winter when it comes to new listings. In fact, we currently have ONLY 71 listings available for sale in the Quaker Valley School District – in most years that number would be approximately 200! So when we say that we need listings, we mean it!
Yes, we do expect that there will be more homes coming on the market in the next couple of months. March & April tend to be our largest listing months every year, and we hope this year will be no different. However, if the past couple of weeks have been an indicator, you should expect it to be a fast moving spring market. We have had a few introductions recently and as a general rule they have flown off the market. We have a tremendous amount of pent up demand. There are dozens of buyers in every price range sitting on the fence waiting for their “perfect” listing. If you are one of those buyers, you should expect that you will have some stiff competition. So make sure you have your financing in order and be prepared to move quickly if you see something that looks like it could work.
If you are one of the many Village dreamers we have out there, I encourage you to take a look “up the hill” where we currently have many wonderful options with more on the way. Sure, the theoretic walkability of the Village is nice, but we live a couple of blocks to Starbucks and can count on our hands how many times per year that we actually walk! “Up the hill” you will get larger yards & homes at better prices, and they are all 5-10 minutes to Starbucks! If you are adamant on the Village, start thinking now about what compromises you might be willing to make to get a home. As Pittsburgh grows, our inventory is not keeping up with housing demands and we will continue to see a tighter and tighter housing market. Compromise will be necessary to even get into a home here.
Finally, if you are thinking of selling your home, I have said it many times before, but PLEASE reach out to me! I offer completely confidential consultations and strategic plans to maximize your returns, with a 19-year proven track record. There is no better time to be selling your home! CALL or TEXT 412.779.6060
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We are buying a new home. Can we skip the home inspection and save a few bucks?
I do not recommend that you skip a home inspection, even with a new home. Please keep in mind if buying a new home that no matter how nice and reassuring the builder or his realtor representative are, they do not represent you! I have on many occasions witnessed a builder trying to gloss over obvious deficiencies with new homes. You need a home inspector to carefully assess your new home so that you aren’t burdened with repair bills later for improper conditions that existed at the time of your closing. While the inspector is there, it’s a good idea to get a pest and radon inspection in addition to a general home inspection. Both pests and radon are commonplace and can be significant – its wise to know what you are dealing with before you move in.
However, do not make the mistake of assuming that all home inspectors are equally skilled at their profession. Some inspectors gloss over many areas of concern and take a VERY big picture approach, which, while generally not alarming, can also be very unhelpful as you plan for your future improvements to the home. Others can be incredibly harsh and point out flaws that are inaccurate or irrelevant, leading you to over-react. Before booking a home inspector, do your due diligence – make sure they are ASHI certified and read their online reviews (as you I am sure you did when you chose your Realtor).
Finally, once you move in, keep in mind that it is recommended that homeowners have their homes professionally inspected once every ten years. The mere passage of time can take a toll on a home, and better that you find problems and correct them before they become big problems. Repeating pest and radon inspections at that time is also a good idea – they are also best addressed sooner rather than later. If you have any questions about whether you should be getting your home inspected, please give me a call! 412.779.6060
RECENTLY SOLD — represented buyers. Click the photo to see more of my past sales history!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
What impact do you think the proposed federal tax legislation will have on homeowners?
For those of you who are unaware, the proposed tax legislation makes several changes to itemized deductions that will impact many homeowners. First, the property tax deduction will be limited to $10,000. In Sewickley borough, if your tax assessment is above approximately $350,000, you will see an increase in your federal income tax as a result of this itemized deduction limitation. Additionally, while existing mortgages are grandfathered, interest will only be deductible on new mortgages of less than $500,000.
The National Association of Realtors believes these new changes could put home ownership out of the reach of many and nullify the home ownership incentive for all but the top 5% of our nation. Home ownership is already at a 50 year low nationwide. For many Americans, a home is the largest investment they will ever own. Studies have also shown that at the end of the day, the net worth of a homeowner is, on average, a shocking 45 times greater than that of a renter, demonstrating how important it is to incentivize home ownership so that Americans have the needed nest egg when they retire.
My predicted impact on our local housing market is that it will soften prices over $350,000. Without the benefit of the tax deductibility of property taxes over $10,000, mid-market buyers will qualify to buy less than they can today, and it will have a downward pressure on prices overall. With the severe inventory shortage we have right now, this is not likely to be immediately evident, but it will likely impede the long-term growth rate. The cap on the deductibility of interest on new mortgages over $500,000 will have a much larger impact on the market overall. Homeowners with large mortgages will be disinclined to make the “choice” moves we are so accustomed to here in Sewickley, because a move will mean they lose the deductibility of a significant amount of interest on their grandfathered mortgage. This will only exacerbate our inventory shortage as homeowners will be likely to just “stay put” and take advantage of the deductibility of interest on grandfathered mortgages. Additionally , for homes priced over $550,000, buyer affordability will drop further as carrying mortgages over $500,000 will be noticeably more expensive, with the potential of exerting further downward pressure on market appreciation. Its hard to know how any of this will help us, but then, I am not an economist – I must be missing something!
[contact-form-7 id="115311" title="Get More Information Form"]
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA
REAL ESTATE SERVICES 401 Broad Street
Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Selling a home can be a trying process. They say forewarned is forearmed. Any annoyances a seller should be expecting?
Below is a short list of many of the “joys” sellers might experience during the listing process. Being aware that these are possibilities will hopefully help you take them in good humor if they happen to you!
The agent showing your home will miss appointments and not call or show up.
Appointments will be made and cancelled at the last minute.
Some showings will last about five minutes and some will last 3 hours.
There will be a day when I call you and say someone wants to see your house, and you are going to ask me when. And I will say: “Look out your windows, they are sitting outside now”!
Agents are going to knock on your door or even drive by, see you in the yard and ask if can they see you house.
Agents showing your home will forget to turn lights off.
Agents showing your home will let your pets out (best to remove them from your home for showings) or your neighbor’s pet in.
Agents will provide unhelpful feedback – buyers buy homes when they attach emotionally to a home and when they don’t, their feedback is often nonsensical.
Agents will not provide any feedback – incredibly annoying, I know.
The agent on the sign will be in witness protection and not return any phone calls.
Expect lowball offers (at least it is a starting point).
Things will come up on the inspection that you had no idea were wrong with your home and you will be sure the inspector made a mistake.
The buyer will make ridiculous inspection requests.
The buyer will ask to bring in contractors for estimates for work they want to do after the closing at the seemingly most inconvenient times.
The property might not appraise at what you are selling it for.
The closing date on the contract may change.
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Fall is upon us! Any tips for presenting our home well in the fall market?
Fall can be such a wonderful season here in Pittsburgh, but sometimes sellers forget that they need to take a fresh look at their home to make sure it is still presenting at its best as summer ends. Start with your yard. It’s the first thing a buyer sees! Make sure you have trimmed away all of Summer’s dead blooms and that your garden beds are looking ready for their long winter’s nap. Put down fall fertilizer so your yard looks great again this coming spring! Be sure to give your lawn its final mow, and as we move into fall, keep your leaves raked!
Don’t forget to keep your gutters clean – if your home is actively on the market, you may need to do it more than once – you don’t want a buyer to see clogged gutters and mini-trees emerging! Give porches and patios a final thorough cleaning. If your windows aren’t really clean, get that done too – as we go into our grayer time of the year, its really important to get as much sunshine inside as possible!
Inside, check all of your lightbulbs and make sure they are all at the maximum possible wattage and in good working order. As days grow shorter, it will be important for your home to be bright and cheerful inside. Clean out your garage. You will need it once snow flies, and you won’t want to be out there in 30 degree weather! Be sure that if you choose seasonal decorations like mums or wreaths, that you remember to rotate them as we move through the season so that you reflect the current season!
And of course, if you know now that you want to list in the coming Spring season, which kicks off in January, give me a call now so we can get photography done while there are still leaves on the trees!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We just completed a home inspection and submitted our requests to the seller. They did not respond well and felt we were too comprehensive in our list of requests, although they were all items the home inspector pointed out as issues in his report? What are we to expect?
The home inspection process is as individualized as the people buying the homes. Some sellers are so eager to sell their homes that they will gladly cede to your every demand. Some homes are so well priced and so well received by the market that the sellers are willing to do virtually nothing with respect to inspection requests. How your sellers respond will likely depend on how badly they want to sell to you, balanced with what they think their chances are of a sale to another buyer in the near future. But there are a few guidelines to keep in mind when evaluating what to ask for on the home inspection and how to weigh the seller’s response.
Anything the seller has called out on the disclosure should not be part of your inspection requests – you should have taken these conditions into account when you were making your offer. For example, if the seller has disclosed that the furnace is at the end of its useful life, it is not appropriate to ask for the seller to pay for a new furnace.
If the condition was easily observed when you visited the home, you should also have taken it into account when making your offer and not be raising the issue now. For example, if you noted that the front sidewalk was badly cracked when you saw the home, that should have been addressed in your offer and you should not try to renegotiate price based on that condition after the inspection.
Finally, you should use some materiality standard for your requests. Some buyers use a health and safety standard and focus on items that could put their health or safety in danger, such as electrical or radon problems. Some use a major defects threshold and focus on items that are expensive to repair. But as a general rule, it’s a good idea to let small items and maintenance items go, such as caulking bathtubs, tightening loose toilets and installing handrails on basement stairs (which no one except the home inspector cares about anyhow!) If you focus on what really matters, you are more likely to establish a positive dialog with your seller and end up with a positive result.
I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
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We recently viewed a home that is on the market, only to find out the seller was taping the showing – we were stunned. Is this common?
Welcome to the age of cheap technology! If you are viewing a home, whether at an open house to at a private showing, these days you must assume that you are being filmed. There are many systems that are available, from ring to nest to cameras installed as part of a home security system. They are fairly inexpensive, are often not recognizable as cameras and frequently record sound as well as video. Sellers typically install them as part of a home security or doorbell system – they are not usually installed just to spy on buyers and their agents. Typically homeowners have security in mind when they install these systems. But when their home goes on the market, these systems do provide a handy way to see firsthand what people are saying about their home. So yes, it has become reasonably commonplace to be filmed at a minimum around the doors of a home, but often inside as well. The owners can usually access these videos in live time on their tablet or phone, and they are also recorded for later review.
Knowing this, I would suggest that you simply revert to old-fashioned good manners when viewing homes. Don’t say anything near or in someone else’s home that you wouldn’t want to see on YouTube! Don’t criticize the seller’s décor choices or the condition of the home – it may come back to haunt you if, after reviewing the inventory, you decide that it was in fact the best option for you, only to find out that you unintentionally offended the sellers. Sure its ok to make factual observations, but you should refrain from judging. Save all commentary for when you are back in the car with your agent.
If you are viewing the home with children, be mindful of their behavior as well. Keep them with you at all times. Be sure that they are not running or jumping inside of someone else’s home or touching their things. Have a hard time managing high energy children at an open house or showing? Schedule a babysitter so that you can view the home without having to worry about monitoring their every move.
In this day of minimal privacy and cheap technology, the best approach is to assume you could very well be on Candid Camera!
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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.
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. USA Today recently reported (as shared on my Facebook business page, Kathe Barge Howard Hanna Sewickley) that we are nationally at a 20 year low in available housing inventory. What is going on you might ask?
USA Today reports that the Baby Boomers are to blame! 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 as we move into the spring market, but with the low inventory and huge backlog of buyers, I expect pricing will be high and bidding wars probable. 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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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.
Is it a good idea to pay down the principal on your mortgage if you have extra cash?
I have no doubt that my friends in the financial services industry would tell you that you should invest your money in the market rather than paying down the principal on your mortgage – debt is cheap right now and the stock market has been hitting all-time highs, so if you are comfortable with the risk, investing your excess cash in the market might yield you a higher return than pre-paying your mortgage.
However, possible appreciation is for many only one of several factors that should be considered. For some, eliminating debt provides a feeling of security. Having little to no debt can be a great comfort if you lose your job, choose a new, lower paying career or simply retire. For this reason, some choose to pay down their mortgage as quickly as possible so that they have a significantly lower monthly need for cash.
There is also a significant savings to those who pay off their mortgage early. Simply making one additional payment each year (for a total of 13 payments instead of 12) can make a notable difference in your total cash outlays. For example, if you add an extra 1/12 payment onto your monthly payment and if you have a $200,000 30 year loan at 4.5%, you will pay your debt off 4 years and 3 months earlier than expected and save yourself $27,000 in interest as well!
Finally, the more you pay down your mortgage principal, the faster you build equity in your home, which will put you in a great position when you want to buy a new home. In essence, paying down principal early works as a sort of forced savings plan – before you know it you will have amassed an impressive nest egg!
[contact-form-7 id="115311" title="Get More Information Form"]
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.
In your May 11th article your Tip #12 was “when it is priced right, it will sell.” Our home is on the market, has not sold and we feel it is priced right. Is this maxim always true?
The short answer is that it is not always true. Some homes just take longer to sell than others. If your home is “quirky” in its market, then it may take longer to sell, even if it is priced correctly. By quirky I do not mean dated décor or with deferred maintenance you have not yet completed. What I mean by quirky is, for example, if you are trying to sell a 2 bedroom home in a market that is nearly uniformly 3+ bedroom homes, that could slow down its resale. In Sewickley, if you have a home “up the hill” it will always take longer to sell than the same home in the Village or the same home in the North Allegheny School District. When buyers think Sewickley the overwhelming majority think “Village” and it takes longer for them to discover and understand the value of living “up the hill.”
However, if your home is located in the Village, has been on the market for several months and is under $1.5M and has not sold, it is likely it is overpriced. We have a tremendous backlog of buyers looking for homes in the Village. It does take time for buyers to view and assess the possibilities of a home, but certainly not months. As a general rule of thumb we like to say that if a home has had 13 showings with no offer or if it has been well-marketed for 13 weeks without an offer, an adjustment must be made to draw an offer. The three time-tested factors that determine sale-ability of a home are price, condition, and location. Location cannot be changed but does have a big impact on price. In Sewickley, even a block can dramatically impact whether a home sells quickly or not. Condition can be adjusted and I suggest you read some of my prior articles on my Ask Kathe blog at www.kathebarge.com for important information on what buyers expect in today’s market.
The final factor is of course price. Depending on the price range your home is in, even a small adjustment can result in renewed interest in the home. Additionally, it is important to consider where your competition is priced and selling, and this is a continually moving factor. Other home owners may underprice to be “the chosen one” and you may be faced with the choice of either reducing to match their price or understanding that theirs will likely sell first. Additionally, if you have received constructive feedback regarding either deferred maintenance of dated décor, you will either need too adjust your condition or your price.
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.
There are so very many favorite stories I could share! My favorites are the ones that are incredibly stressful in the moment and too funny to be believed after the fact! Most arise in the moments before closing when tensions are already high. I’ll never forget my first year in real estate, now eighteen years ago, when I hadn’t yet figured out how important it is to specifically tell a seller what is expected for closing. One seller was quite shocked to discover that they were actually required to remove the 20 pairs of snow tires they had stored in their garage, and none too happy to incur the significant haul away charge. Given the large fee associated with their removal, I could certainly understand why they hadn’t previously parted with the tires, but I never figured out what they thought the new buyers were going to do with them. Now I tell all sellers: you must remove all items that are not affixed to the home and not specifically included in the sale from the home prior to closing. And yes, that includes all of the old paint that has been in your basement for the past 50 years!
I have at times encountered sellers who are confused about what condition they must leave a home in for closing. So confused it seems that homes have been presented with trash strewn around, cookie crumbles all over the floor and filthy appliance interiors. I will never forget the closet smoker seller who scattered an entire coffee can of cigarette butts on the walk on her way to closing, unhappy with the price she had agreed to, only to have to leave the closing to go home and clean up. Another rule for sellers: the home and property need to be clean – broom swept at a bare minimum.
The most confusion centers around inclusions and here I really have seen it all. The seller who removed all lightbulbs from all lighting fixtures was certainly going too far! My absolute favorite was the seller who removed the toilet from the master bathroom, leaving nothing but a hole in the floor, stating that a toilet was a “personal hygiene device” and that they didn’t understand why the buyer would want it! As you can imagine, the seller had to pay to replace the toilet. Which brings me to one final rule for seller: if it’s attached to the property, be it by nail, screw, glue… it stays!
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.
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.
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.
In your May 11th article, your first item you noted about real estate is that a home is worth what a buyer is willing to pay. I thought a home is worth what it appraises for?”
In my May 11th article (available to those of you who missed it on my website), I did list 12 important things everyone should know about real estate, the first being that yes, a home is only worth what a buyer is willing to pay.
Appraisals are typically done in conjunction with a mortgage application, although they are sometimes done as part of an estate administration or by a homeowner who wants to get a better sense of what a home is worth. Many appraisers are not experts in the neighborhood they are trying to appraise a home in and miss the block by block nuances that greatly affect value. However, even if they are well versed in a particular area, they may not have been in every home and may not understand the special circumstances surrounding why one buyer may have paid a premium and another buyer may have purchased at a discount. Appraisers often don’t have their finger on the pulse of buyer expectations – unlike Realtors, they do not interact directly with buyers and don’t have the opportunity to hear them complain about wallpaper, colored carpets, dated lighting and outdated kitchens and baths. They don’t see firsthand how eager buyers are to purchase newly remodeled homes and the premiums they will deliver for those homes and they aren’t privy to the conversations Realtors have trying to convince a buyer to take on a project. So sometimes they are just too high and that price will not be achievable absent a sizable remodel.
It is also irrelevant how much money a seller has invested in a home. It is important to keep in mind unless renovations were made in conjunction with a home-staging professional in an effort to sell your home, improvements were made for the homeowner’s enjoyment and may not carry any value for a home buyer.
In the end, Buyers in 2017 America are quite savvy. Most view all inventory for many months before choosing a home. They probably know better than a home seller how a home stacks up against what has recently sold. If they don’t, it is all readily available online. So in the end, the price is determined by how convinced a buyer is that the value is in the home.
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Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Why have so many deals fallen apart this spring? We watch the market and see homes that sell and then come back on the market – what is happening?
You have unknowingly picked up on one of the flaws in the Pennsylvania Standard Agreement for the Sale of Real Estate. In the inspection contingency contained in this agreement, the buyer has the unilateral right to terminate the agreement of sale if they find any condition in a home inspection unsatisfactory to them. It does not have to be a major defect as it did in prior years. It does not have to be a safety related concern. It does not have to rise to a particular threshold of cost to repair. ANY condition whatsoever that they find unsatisfactory – a scratch on a floor, a dented garage door, a stain on a carpet — and they can terminate. They do not need to give a seller an opportunity to repair the item – they can just say “sorry, we don’t want your house.” They get their hand money back and the home is back on the market.
Unfortunately, this year buyers have begun to abuse this right to terminate, treating it like an option to buy a home. And when they do this, it stigmatizes the home for future buyers. I have seen deals terminated for items as simple as non-operational dimmer switches and puddles in the driveway, without giving the sellers the opportunity to repair. In other words, these are not serious buyers, and something they liked more probably came on the market. They terminate, wasting everyone’s time and energy.
This is a terrible trend, but sellers, you don’t need to sit back and let this happen. When negotiating an offer on your home, you can negotiate any term, and you would be well advised to indicate that buyer’s right to terminate before even asking the seller to repair should be stricken from the agreement. The buyer is still protected because they retain the right to terminate if the seller refuses to make the desired repairs, but this solution provides a more appropriate playing field for all parties.
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Why don’t realtors use plain language to advertise their listings? How are we to be able to translate what they write so that we know what a home really has to offer?
The first step in selling a home is marketing that home, and sometimes the brutal truth is just not going to attract a buyer. We figure that if we can at least get you to explore the possibilities, that there is a chance of a sale. “Cozy” sounds much more appealing than “small”, “motivated seller” is less alarming than “the seller needs a sale now” and “awaits your vision” is far more intriguing than “this place needs a complete overhaul.” I’ve included a translation guide to some of our more popular phrases to aid you in understanding “realtor-speak” as you peruse our listings!
Complete Renovation: the home has had a top to bottom overhaul and nearly everything is new within the past few years
Mature Landscaping: large trees, but it could border on overgrown
Secluded: there is no one anywhere to be found
Historic: old, with windows that don’t open, don’t stay open, don’t shut or don’t lock
Original: everything is at least 50 years old
Investment Opportunity: you’re going to need to gut this one to the studs
Needs TLC – another complete rehab needed
Custom Window Treatments: early 90s, expensive, teal or rose colored draperies
Must see Inside: zero curb appeal
Bonus Room – no one knows what to do with this space
One Car Garage – you might get your Suburban in, but forget about opening the doors once inside
Up & Coming Neighborhood – this home is next to the train tracks
Desirable Neighborhood – you’ll be paying more for this house because people love the neighborhood
As Is – inspect before making your offer – the seller won’t be fixing anything
Unique – you might have a hard time reselling this one
Close to the Village – a 10 minute drive by car
Walk to Village Shops – might be possible, but who has time?
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
We have been looking for our dream home for a long time in the Village and we cant seem to find the right combination of features in a home – either the yard is too small or the home needs too much work or its too close to the neighbors or there is no garage – any advice?
Yes! Look “up the hill”! I have yet to understand why more buyers don’t look outside the Village. Yes, the walkability to the Village center is nice, but realistically how often do you do that? I live in the Village, and am usually in a big hurry and drive where I am going! And I see many residents who live up the hill who drive down, park and enjoy the Village by foot more than I do! There are many many advantages to buying “up the hill” that make it worth considering this option.
First, yard sizes are almost always larger. There is generally far more room for the kids or pets to play, more room for gardens, more room for a pool, sport court or auxiliary garage for overflow cars. Larger lots mean there is more space between the homes, so while you still have neighbors, you cant hear them sneeze inside their home, which is the case for some Village residents!
Homes “up the hill” universally give you more value for the dollar. They are generally larger homes in better shape for notably less money. You can spend less, have a smaller monthly mortgage payment, and get more space! Homes “up the hill” are also generally newer homes, so if they require updating, the scale of the project is usually smaller and more of a cosmetic nature. And because you are dealing with newer homes, the cost of any projects is usually less because you are not having to deal with old wiring and plumbing or structural problems. And the overwhelming majority of “up the hill” homes have garages.
You might also be interested in knowing that the tax millage charged in the “up the hill” boroughs is notably lower than the millage in Sewickley borough – there is a real premium paid on a daily basis in property taxes for the privilege of being within ½ mile of Village center.
It’s hard to imagine what’s not to love about our wonderful “up the hill homes.” Larger, newer homes on larger lots with peace and tranqulity. So you have to drive 5 minutes to the Giant Eagle as compared to the 3 minutes Village dwellers drive. It seems like a more than sensible trade-off for all of the advantages offered by our “up the hill” communities.
Step outside the box and venture “up the hill” this Sunday when we will have many of our listings open! You may be surprised at how enticing the “up the hill” homes are!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
It’s true! Bidding wars are back in some neighborhoods! The extremely tight inventory, coupled with the influx of spring buyers has made the competition sometimes fierce for well-conditioned homes in great neighborhoods. The first thing you should do to set yourself up for success in a hot market is to get a pre-approval from a reputable local lender.
The pre-approval process is more than a pre-qualification. It involves submitting all documentation to your lender long before you actually make an offer. This includes tax returns, bank statements… The lender will underwrite your loan subject only to the appraisal of your new home once you find it. This makes you an incredibly strong buyer – you could choose to remove the mortgage contingency altogether and insert only an appraisal contingency, but even short of that, knowing that you have taken the time to get fully approved will impress the seller and give you some advantage over other buyers.
Pre-approval (as opposed to pre-qualification) is also important so that you don’t find out 75% of the way through the home buying process that you cant afford the home. Sometimes lenders miss some of the critical pieces of your puzzle during the pre-qualification process that an underwriter will pick up. For example, it is possible that your gross income is high, and that you reported that figure to the lender, but when the underwriter reviews your tax return they see that your AGI (adjusted gross income) is lower due to alimony. Child support payments will also lower the amount of the loan you can qualify for. You may have co-signed student loans or car loans for a child, or a mortgage for a family member. Any debt you have co-signed for, whether it is an asset you use personally or not, will lower the loan size you can qualify for. And of course, pending actions for divorce, as well as dings on your credit you were unaware of (such as doctors bills you forgot to pay) will affect your ability to borrow. Better to take the time to figure this out up front and target homes you know you can afford, rather than being tempted by those out of your price range!
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I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES Associate Broker HOWARD HANNA REAL ESTATE SERVICES 401 Broad Street Sewickley, PA 15143 Cell: 412-779-6060 Office: 412-741-2200 x238 kbarge@howardhanna.com
Now that fall is here, do you have any tips for presenting our home well in the fall market?
We hear that selling a home can be a trying process. They say forewarned is forearmed. Any annoyances a seller should be expecting?
We have been waiting for a while for some new homes to come on the market –are you anticipating more listings soon?
We are looking to buy a new home – where is the market these days? Do you have any advice for buyers?
Often buyers do not order a survey of their new home and while this saves a buyer at least $400 – $500, ordering a new survey when you buy a home is a good investment. Surveys are valuable because they will show you whether there are any boundary issues with the property that might be expensive to fix later. For example, the neighbor may have built his new shed slightly over the property line. Getting that fixed might strain neighbor relations and cost you money. Better to let the current owner handle it before closing. Surveys can also reveal undisclosed easements across your property. You might find out that the neighbor has the legal right to have their driveway on a piece of your property or that the neighbor has a right to use your driveway to get to their property. While you may be ok with shared use, it is certainly something you want to make an informed decision about and not something you want to find out after the fact.
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.
I may be repeating myself here, but in this hot spring market, it really is an important message. There is simply nothing more powerful for driving in a high offer for your home than listing it with a real estate agent who is fully engaged in the marketing and selling of your home! Yes, you did ask a realtor, so you probably expected that answer, but here’s why.
Sewer lines have become as radon was 20 years ago – today’s hot button for home buyers. In some boroughs (Mt Lebanon, for example) the borough now requires that before a home seller can transfer ownership, the sewer line must be scoped and must be without issues. Here in the Sewickley area, we do not have any boroughs imposing any such requirement on home sellers, but many buyers today do have a scope performed of the sewer line as part of their home inspection. And yes, if issues are discovered, they do expect the seller to remedy them. If a sewer line needs to be replaced, the cost will likely be between $5,000 and $10,000.
The spring market is here (although with the forecasted low temps for this week it may slow things down a bit)! Buyers are definitely buying right now, so if you think a move is in your future, despite the cold temperatures, the time to get started is now! We have seen homes that have been sitting for months go under agreement in the past couple of weeks, some with multiple offers, and our inventory is dwindling. We still have many nice options available for you to consider, and this is a far better time to buy than March, April or May.
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.
Well, you are asking a Realtor that question, so the answer is probably expected! The first thing you should do is call me! Once you have done that, here is a look at what comes next! First, we will meet and determine the likely value of your home in the current market. The market is quite fluid and values move up and down depending on supply. Currently we have had very low inventory for an extended period of time and buyers are getting very frustrated, so it is possible that we may see an uptick in values again this spring. When we meet we will also review all of the many ways I will be marketing your home and the timetable for rolling out the marketing to optimize your result.
I still recommend that you choose stainless appliances. While there are many options out there including some pretty interesting colors, I still see buyers responding most favorably to stainless. Sure, they might be harder to care for (you will need a can of stainless polish in your cleaning cupboard), but the look is still quite appealing and “professional.” There is, however, one circumstance when I do not recommend stainless for replacement appliances. If your kitchen has another color appliances (white or black, for example) I do not recommend replacing only one appliance with stainless. If there is one thing buyers uniformly dislike it is mismatched appliances (in color – mixing brands is fine). So if you currently have white appliances and don’t think you will be replacing the other appliances soon, stick with white. Even though white (or black) does not have the same appeal that stainless does, a kitchen with two white (or black) appliances and one stainless is the least appealing of all!
It’s a well established myth that our market slows down over the holidays! While it might be true that we (happily) transact very little business on Thanksgiving Day or Christmas Day, the fall and winter months are no less vibrant than most other months!
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”)
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.
Who can forget the old childhood game – pass the hot potato? The object, of course, was to not be holding the hot potato when the music stops. We have our fair share of “hot potatoes” in real estate too, and just like in the childhood game, someone always gets stuck holding the hot potato.
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 still 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.
You are correct – the fed raised the interest rates AGAIN this year, and have indicated that we need to be prepared for two more rate increases in 2018. Those increases are expected in September and December and many forecasters are expecting that rates will be over 5% by 2019. The economy has been incredibly strong and unemployment is lower than it’s been since the 1960s (excepting one month in 2000). With a surging economy, the fed is forced to raise rates in an attempt to keep investors interested in mortgages, control inflation and avoid a possible future economic crash. Rates are ¾ point higher than they were last year. Nonetheless, historically 6% is considered an excellent interest rate and they are still well below that!
