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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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
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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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
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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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
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 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
What is going on with the high-end market in Sewickley? Why don’t there seem to be many high-end sales?
Our high-end market has been slower than normal for over a year now. Speculation abounds as to why that is the case, but it doesn’t seem that we are alone – sales of higher end homes in many pockets of this country have slowed. Many attribute that to the fact that our tax system was restructured to allow for a larger standard deduction and lower marginal rates but at the cost of limiting the deduction for property and income taxes to a combined total of $10,000. For high property tax jurisdictions such as our own, many commentators believe this has caused a slow-down in high-tax (i.e., high priced) home sales. I have held out hope that when people filed their taxes this past Monday, maybe they would discover that they are better off under the new system despite the deduction limitation and we would see the property tax fear fade into the background. I must admit that even as a former tax lawyer I have found the new forms a bit confusing, so I am really hoping we will see some favorable spin coming from tax preparers this week.
We may however need a general mindset adjustment. As a whole, our income taxes in PA are lower than the majority of states. Our earned income tax here in Sewickley is only 1%, compared to 3% in the city of Pittsburgh. We do not have sales tax on clothes or food as many states do. So while our property taxes may be on the high side, we are in a far better position overall than many residents of metropolitan areas with similar advantages to Pittsburgh. Property taxes are just a cost of living, and if your bucket list includes the amenities of a higher-end home, the taxes are what they are. The sooner our marketplace accepts this reality, the sooner our higher end homes will start selling again!
In the meantime, our middle and lower end market segments are moving fast and often with many offers. Homes in these segments that are priced appropriately for condition and amenities are often selling with multiple offers, and in a very short amount of time. These market segments are accelerating quickly in their pricing. Waiting for the home to show up on your Zillow search is likely going to be too late. If a move is something you’ve been considering, give me a call and we can strategize on how you can best meet your needs in this complex market we find ourselves in! 412.779.6060
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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
The polar vortex has left us wondering if there is anything we should be doing to our home to help it survive these cold snaps?
Last week’s incredibly low temperatures left many homeowners in the region with unexpected frozen pipes. It seems in Pittsburgh we may not build with as much attention to cold air defense as they do in historically colder regions of our country, and these unusually low temperatures catch us off guard. As we rebound a bit from the extreme cold, however, it is a great time to think about how your home responds to super cold temperatures. If enough cold leaks in to freeze pipes when we are at single digit temperatures, chances are you are spending a lot of money heating and cooling the great outdoors year round! A quick energy audit might save you hundreds of dollars in energy bills.
A really cold day is a great time to canvas your home for air infiltration – there is no easier time to find your leaky areas then when cold air is coming into a really warm space. Caulk cracks around windows and doors to eliminate drafts. Add weather stripping to doors and windows, and gaskets to plugs and switches on outside walls. Be sure to check your fireplaces if you live in an old home – decorative fireplaces can be a direct vent out for all of your heat and may require a cap or some insulation if they are never used (I personally love the spring-loaded top-down dampers – they are super easy to use and keep you air tight when your fireplace is not in use).
If your home’s windows are still single pane, replacing them with a good quality double pane window will also reduce your bills, and assuming you choose a better window (wood clad interior), greatly enhance the value of your home. At a minimum make sure you have storm windows in place.
There are several other things you can do to prevent cold weather damage to your home. Keep your furnace filters clean so that your furnace operates efficiently and can keep your house up to temperature. Clean your gutters to avoid ice dams that can cause water to infiltrate and damage the interior of your home. Make sure all of your water supply pipes are wrapped to help prevent freezing, particularly in colder areas of your home, such as pipes that run through the garage and unheated portions of the basement or crawlspace. And if we do hit single digit temperatures again, don’t forget to leave the water dripping in the sink at night to prevent water from freezing while sitting in your pipes and open cabinet doors under sinks to keep the warmth of your rooms heating the supply lines! Enjoy the warmer weather this week – I won’t last forever!
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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!
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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 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!
[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
This time of year we all take the time to give thanks for all of the wonderful things in our lives. I have much to be thankful for. The obvious chart toppers are good health, wonderful family and friends, and a warm home to come home to each day (which I particularly appreciate on these chilly November days!) My gratitude extends much further, however, to all of the people I work with every day that make real estate transactions so seamless for my clients – from the best mortgage brokers and closers to incredible home inspectors and handymen, contractors, electricians, roofers… that I can count on to give their best to my clients. With them by my side (or on speed dial) I have been able to provide the highest level of service to those with whom I work, and for that I am grateful.
My gratitude, however, extends even further – to forces I can’t control. We have been very fortunate to have historically low interest rates for a very long period of time (and even though they have been inching up, they are still comparatively quite low), and a taxing structure that has favored home ownership as an investment. I am always reminded that Uncle Sam, through the mortgage interest deduction, effectively pays a portion of my mortgage every month. Through the system as structured, we are not only able to own homes for less than we could pay to rent them, but at the same time we are building equity which will be there for us when we retire and are seeking that nest egg to purchase our retirement home with.
Are you taking advantage of all that is available to you? It’s hard to imagine that there will ever be a better time to begin or increase the size of your nest egg in real estate. If you’re ready to downsize and cash in your nest egg, it’s an absolutely ideal time – inventory is low, interest rates are still on the historically low side and we have buyers waiting in line for Sewickley homes. The spring market starts in January – the time to sell is now! Enjoy your holiday, and give thanks for all that is wonderful in your life!
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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
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!
[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 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. 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 (nothing available) and Sewickley Ridge (in Aleppo – one 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 (none 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. 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 Sewickely all year. 316 Beaver Street has just undergone a smart remodel and offers stylish in-town condos. The Linden, 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! 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, 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
[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 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, on a good day, at rates below 3% fixed. Now they have inched up to 4.25% for conforming loans and 4.75% for jumbo 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 toward 5%.
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!
[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
If there are so many buyers out there, why aren’t we seeing more sales?
The average time between a first showing and an offer is 3 weeks. Buyers here are historically slow to get going, although some of the fast sales lately are driving home the point that if you like a home, you are well advised to move quickly in making an offer. That said, there are four primary reasons that hold buyers back from buying a home, according to a 2017 REBAC survey. The first and most applicable right now? Seventy-seven percent of buyers aren’t buying because of our inventory – they can’t find what they want. This has been a recurring theme in my articles – we need inventory! I know it’s early in the spring market, but if we don’t start to see homes coming on the market soon it will be a disappointing spring market for buyers.
The second hold back? Fifty-five percent of buyers have unrealistic expectations! If you know anyone looking for a home right now you have probably heard a lot about what is wrong with our homes. Right now, if buyers actually want to get in a home, they are going to have to adjust their expectations. You might have to do some work to make a home work for you. You may have to give up some of the things on your wish list.
Forty-nine percent of buyers hold back from buying for affordability reasons. Often this is price – our prices are increasing, and may be pricing some buyers out of the market. Our property taxes are also quite high here as compared to many other states, and some buyers simply can’t afford the monthly payment once taxes are added in.
Finally, thirty-three percent of buyers have difficulty obtaining financing. This is why it is very important to do the hard work up front! Seek a full pre-approval before you start your home search so that you aren’t disappointed later!
As always, feel free to give me call if I can be of any assistance with your real estate needs. Call or Text 412.779.6060
QUICK SEARCH
[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 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
The new tax legislation seems to be on everyone’s mind these days, and seems to be crowding out Christmas cheer a bit. While I do need to advise you to consult your personal tax accountant, I will tell you I have been busy prepaying my 2018 property taxes. Under the new legislation, taxpayers will only be able to deduct a grand total of $10,000 of property and income taxes combined. In our area, property taxes are higher than in many parts of the country, so many people will easily exceed that limit. Paying 2018 property taxes in 2017 helps to insure the full value of their deductibility. Of course, 2018 tax bills have not been issued yet, but if you find your 2017 bills and make a couple of calls, they will be able to tell you how to proceed if this interests you. The taxing bodies are likely thrilled right now with the new legislation – rather than chasing late payers they are receiving their money well ahead of schedule! Of course, if your bank escrows your taxes for you, this may not be an option you can take advantage of.
I’ve also taken the time to pay my 2017 4th quarter Pennsylvania and local income taxes now, for the same reason. While not due until January 15th, the $10,000 limit on the deductibility of property taxes and state/local income taxes combined will result in lost deductions for many. This tax planning is only useful right now, when the old limits (or lack thereof) still apply through 2017.
As far as the legislation itself, I am pleased that congress raised the mortgage deductibility limit to interest on mortgage debt up to $750,000. Interest on debt on second homes is no longer deductible (unless you use it as an investment property, in which case it can offset your rental income), and interest on home equity lines of credit will no longer be deductible. This will definitely affect the way consumers choose to structure their home buying financing. We will be thoroughly digesting the bill so that we can help consumers make the best financing decisions to take advantage of the tax breaks we do have left.
The $10,000 limit on the deductibility of property and state/local income taxes is not ideal, particularly because of the higher property taxes we have in the region. There is a possibility that the limitation will make higher end homes harder to sell, but I doubt that. In the end, consumers will have to have a mindshift and think less of their personal residences as tax breaks and see them for what they really are – a home for their family to come home to every day – their personal sanctuary from what can sometimes feel like a crazy world. And when we see our homes that way, the small piece of our property taxes that Uncle Sam no longer “pays” will seem far less important than it does in the abstract.
[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
When we buy a new home, when can we expect to be able to move in?
The answer to your question varies from state to state. In Pennsylvania, possession transfers immediately at closing! How does this impact the buyers and sellers?
Sellers, you must be completely moved out before closing day. The latest day your movers should come is the day before closing. You need to be sure to leave enough time to clean the home after they leave. If you don’t already own your new home and plan to close on it immediately after closing on your old home, you need to plan for your movers to store your things on the moving van overnight. However, it is generally smart to move out a couple of days before closing, to make sure that you have time to clean and dispose of any items the movers didn’t take. Its not acceptable to leave things you don’t want behind for the new buyers – if you don’t dispose of them yourself, there is a good chance you will have to provide funds to the buyer at closing to get any remaining items removed.
Buyers, you can start your move in as soon as you pay for the home and finish signing your closing documents! It is not, however, ok to start moving in before closing or to start making repairs and improvements before closing. Both of these scenarios create insurance (and other) issues for the seller. Please plan accordingly – if you need time to renovate before moving in, plan for storing your items with your mover until your work is complete. Properly advise your movers of the closing time so that they are not counting on starting the move-in early.
Your one hour closing is the time that everything transfers – keys, responsibilities for upkeep, taxes… Sellers must be completely out as of that moment and Buyers may enter once that moment has passed!
[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!
[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
If you are building new, then absolutely yes! You should choose a metal and use it consistently throughout the home. Typical choices include chrome, nickel, oil rubbed bronze, and most recently, platinum brass. If you choose a silver tone, its acceptable to mix silver tones, such as brushed nickel and stainless steel. Your choice should apply to all metal in your home, including lighting, door knobs and hinges, and plumbing fixtures.
If you are renovating a room, it’s important to think about where you see your renovations going in the coming years (before you sell). If you have silver tones and you really love oil rubbed bronze but only see yourself renovating one bathroom ever, then my vote would be to stick with the silver tones. But if you plan to ultimately renovate all baths and the kitchen, its fine to make the switch. It is absolutely imperative, however, that metals match in a room. If your faucet breaks and all of your bathroom fixtures are brass and you prefer silver, it is not a good idea to replace one faucet with silver and keep the rest of the brass in that bathroom. Better to replace the broken faucet with brass, or to use the broken faucet as a chance for a mini-update of your bathroom to silver.
I have written before about the general dislike in our market of grandma’s shiny brass. Little has changed. If you have a home filled with shiny brass, one possible solution is to replace as much as possible with the new, trendy platinum brass. This has the advantage of blending well with any shiny brass you may have left in your home. Oil rubbed bronze also tends to blend well with shiny brass (but silver does not). Brass doorknobs and hinges do not necessarily need to be replaced. As long as the fixtures and lighting have been replaced throughout, buyers don’t tend to notice brass doorknobs and hinges as much.
So ideally, yes, in the perfect scenario, all of your metals should match, helping your home sing one song, which is always well received by buyers. However, there are acceptable degrees of mismatch. Call me – I’m happy to come over for a free consultation and help you determine the best way to address the metals in your home! 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 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
Do you have any tips on how to get through the seemingly daunting mortgage process with as few headaches as possible?
I certainly do! Below are a few pointers on what you should not do if you want your mortgage to move smoothly through the process!
Don’t quit your job
Don’t change your job
Don’t get a promotion
Don’t buy any large ticket items (like five dollars or more!)
Don’t make David Copperfield deposits (all funds need to be traceable)
Don’t forget to tell anyone making a funds gift to you that you will probably need a gift letter and some proof (usually a bank statement) that they had the money to give
Don’t forget to tell the lender about child support, alimony, wage garnishments or any other payroll reduction
Don’t co-sign for even a candy bar!
Don’t schedule a vacation before we close (especially a cruise)
Don’t order Direct TV, Cable, Telephone or any utility that will pull a credit report unless you want to write a letter of explanation about the credit report to the mortgage company
Don’t change your name during the mortgage process
Don’t go window shopping and let people pull your credit
Assuming that seems pretty straight forward to you, below are a few more choices some buyers make that make the process more difficult than it needs to be:
Not being up front with your loan officer (hiding information)
Finding a lender on the internet that offers a 0.001 interest rate
Finding a lender on the internet that offers a 000000.1 interest rate and is from outside of the area
Using a 100% Online Lender
Not using the name on drivers license for mortgage docs (use Jr. and Sr. if required)
Not telling your lender if you lose your job before you close
Not shopping the Good Faith Estimate
Delaying paperwork because you are irritated by the frequency and number of requests from the mortgage company
Take these pointers to heart and you will greatly simplify your mortgage process!
[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 distressed about the property taxes in the Sewickley area. We are qualified to buy well above a price point that comes with a level of property taxes we are comfortable affording. Any thoughts to share?
You are not alone in your concern about our local property taxes. They are high when compared to same value homes in many states. But they are commensurate with property taxes on same priced homes in the other top Pittsburgh area school districts. If you want great schools, its just a cost of being in a top district. And if you don’t use our schools, being in a top school district will still provide steady appreciation of what is likely one of your largest assets – your home.
If you are not from Pennsylvania, it might help to frame property taxes as part of your larger tax picture. Our PA state income tax rate on individuals is only 3.08% — much lower than most states. We also do not have sales tax on food or clothes here, which adds up to even more savings. Our yearly vehicle fee is also only $41 – also far lower than most states. Yes, property taxes in highly rated school districts can be high, but overall this is a lower cost area to live in.
Additionally, if you itemize deductions on your federal tax return, there may be a tax savings for you associated with the deductions of your property taxes – they might not actually cost you as much as you think – your tax advisor can help with this.
In the end, most people spend a lot of time in their homes. Your home should be something you love coming home to, love spending time with family and friends in. I suggest you do not isolate out property taxes as the bad guy keeping you from the home you love, but rather look at your entire cost of ownership – mortgage, taxes, insurance, utilities, maintenance — and if the overall package looks manageable for a home you love, go for it!
[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 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!
[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.
Our home is under agreement. 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! 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 15 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).
[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.
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.
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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[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 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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[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
The Real Estate Advisor gives me the opportunity to share with you, our community, information that frequently arises in real estate transactions that I hope will help you have a smoother, more successful real estate transaction of your own. No two transactions are alike and the more you, the consumer, know about the process and possible pitfalls, the more likely it is that you will complete your transaction without any major obstacles to overcome.
If a Realtor is a practiced professional, the buying or selling of a home should look like something anyone could do. I’m here to tell you, after 18 years in the business, that making the process seem smooth and hassle free is far more challenging than you might imagine. There are so many possible pitfalls. Questions abound. How to choose an agent that will best represent you in the purchase or sale of what may be your largest asset. How to price your home to maximize your value while not losing market interest. How to prepare your home for market. How to stage your home for a successful sale. What to expect when a buyer views your home. What kind of financing should you consider? How to present an offer that is most likely to result in a sale. What to expect from the negotiation process. How to protect yourself from a bad inspection. How to handle the details leading to closing. How to prepare your home for closing.
The list is seemingly endless. I write The Real Estate Advisor to help you, the consumer, get a better understanding of the process just like I advise my clients daily. I share market information, stories, anecdotes and give advice to keep you well informed and up-to-date. And while it is not possible for me to cram into one article what you need to know to be successful, all of my past articles are posted on my blog at www.kathebarge.com where they are available to refer to at anytime, 24/7. And of course, I am always right here in Sewickley should you prefer to work with me personally! I hope you enjoy the column as much as I enjoy writing it!
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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 frustrated because we have made a couple of offers on homes and our offers are not being accepted. What are we doing wrong?
There is nothing more frustrating than choosing a home for your family, only to find out that you won’t be living in it. But I have to wonder – are you positioning yourself for success? Why are your offers being rejected? Are you presenting yourself well financially? Do you have a preapproval letter for the seller? If not, you need to make that a top priority! If you have a home to sell, is it sold? Or are you asking the seller to take their home off the market while you try to sell yours? That is unlikely to happen in a hot spring market, so price your home realistically, get it sold and represent your offer. Or get approved to buy their home without selling yours and remove the contingency!
The most likely reason offers are rejected, however, is that buyers have unrealistic expectations as to price. There are many out there who feel that Sewickley is “overpriced” and when buying here they need to get a “deal.” This is inaccurate – I have frequently reviewed the market in the other top school districts and Sewickley’s pricing is certainly not more expensive and occasionally less expensive. The relevant inquiry is not how much a seller deserves to recoup out of a major renovation or what you or your agent thinks is a “fair” price. The only relevant inquiry is how much the house is worth, and to determine that your agent needs to determine the comparable sold homes, compare square footage pricing and condition of all of these homes and provide you with data to show you why the seller’s price is or is not in an appropriate range. However, we do not provide square footage pricing in our MLS so you will need to request that your agent prepare this analysis for you. It is truly amazing when you reduce homes to the data and remove the emotion, how sensible our pricing really is. If your hoped for home, for example, is priced at $302/SF and all comparably sized, conditioned and sited homes have sold in excess of $350/SF, the house is a deal at the asking price. If you offer $260/SF, it’s no wonder your offer was rejected! While it might seem “fair” to you, it is not grounded in the reality of our market.
There is always a possibility that the seller’s agent has not educated the seller as to how their home falls in the greater scheme of this data driven analysis, in which case you should ask your agent to present that information along with your offer in an effort to educate the seller. Of course, if you negotiate to within 1% of the asking price, you really need to ask yourself whether that amount of money is meaningful over the life of the loan – it’s probably more sensible to go ahead and pay the price to get into a home that you love. In the end, if you want to win, you are going to provide an offer price grounded in data and backed with reason and being willing to compromise a bit if that’s what it takes to be victorious!
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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 an opportunity to buy a home that we have often admired directly from the owner– any advice?
There are many possible pitfalls to purchasing a home directly from owner that you need to be aware of before proceeding with this opportunity. The most obvious one is determining the value of the home. In my eighteen year career, I don’t think I have yet encountered a seller who has undervalued their home – the emotions we all attach to our homes after years of loving them make it difficult to be objective about fair market value. Establishing the market value of any home is a complex process – there are block by block variations in price and many factors that impact value cannot be changed, such as a less advantageous location. An appraisal is the logical place to start in establishing market value, except that in the absence of an agreement of sale or application for financing, the appraiser is shooting in the dark and will often miss critical differences between homes, such as new baths and kitchens. Additionally, for sale by owners present an unusual opportunity for emotionally attracted buyers to overpay for a home as there is no market response balancing their attraction – they have a fear-based response that if the home actually hits the market, they will lose out (which rarely happens). This predictable buyer response is what typically causes unrepresented buyers of for sale by owner homes to overpay for the home.
Should you feel secure that the seller is realistic in the price they are asking for their home (and feel that you have the skills needed to make that determination), you will need to engage an attorney who will represent your interests in the contract drafting process. There are many terms in an agreement of sale that are relevant to you as you move through the process – it is not advisable to use internet forms or forms provided by the seller – you need your own representation. You need to anticipate paying $250-$400 per hour for this assistance. Because this represents a significant upfront investment on your part that is not required when you engage a Realtor, it would be advisable before reaching an agreement to have the home inspected. Failed home inspections are the number one reason that any home sale falls apart. Without Realtor representation on either side, you may quickly learn that the seller’s view of what is an acceptable condition is not acceptable to you. It is also not realistic to expect your attorney to negotiate with the seller the way a Realtor would – you will be on your own to work out any issues with the seller and the attorney will simply memorialize that in writing for you.
There are many other ways that we Realtors add tremendous value to our buyer clients through the home buying process that are too lengthy to elaborate on here. It is unlikely that were you to need a surgery that you would perform it on yourself. In fact, for most of us it is unlikely we would take on something as simple as a haircut and turn to our trusted stylists to make that a success. Buying or selling a home is not the easy process we Realtors make it look like – there are many steps along the way that require targeted education and experience to navigate to the best result for you, the buyer – and this service is paid for from the seller’s proceeds, so there is simply no reason not to demand your right to buyer representation!
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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
Will there be more homes coming on the market soon? We’ve been looking for a while and it doesn’t seem like there are many homes available.
Our inventory of available homes has never been lower! And yes, there will be more homes coming on the market soon. I have many wonderful homes almost ready to enter the spring market – sellers working hard to make their home appealing to you. But don’t expect an avalanche – I fully anticipate that there will be fewer than usual homes coming on the market this spring. And with the coming of the spring market there will be many more buyers, much more competition, and a rise in the prices realized by sellers. The window is almost closed for buyers to be able to get a good deal this spring from a seller anxious to sell. Buyers will soon find themselves in bidding wars, in many cases for homes they could have purchased a month earlier at a discount.
Will your perfect home be one of the ones coming on the market in the coming weeks? There is always that chance, but if you are looking for that historically charming Village home that has 4 bedrooms, 3.5 baths, a two car garage with modern kitchen and baths, a gray/greige color palette, and a yard big enough for fun… get in line! There is a large crowd of people waiting for that product and you are well advised to be pre-approved by a lender and ready to put in a strong offer very quickly, with no guarantee you will be the winner. Another reasonable alternative is to reconsider what we have on the market – there are many terrific homes that with a little effort, could be your dream home.
Why is inventory so low? Here in Sewickley, our community’s popularity is growing every year. The school district continues to garner accolades and rank highly and the secret is out – this is a super cool and fun place to live that is really close to both Pittsburgh and the airport. Why not Sewickley? So as more people try to find a spot here and fewer people depart, fewer and fewer homes are available for sale. The scarcity of homes will continue to put upward pressure on prices. And of course, if your priority is a home in Sewickley, you may just need to consider where you can compromise to make your dream 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
What financing options exist for transitioning between homes if we don’t have to sell our current home to buy our new one and our objective is to remain debt free when the transition is complete?
The process of selling one home and buying another often feels like there are many moving pieces. If you are fortunate enough to be able to buy a new home before you sell your old home, you have put yourself in a wonderfully strong position as a buyer to be able to make an offer on a new home that is not contingent on your old home selling. As we enter what will be a very strong spring market, that will be a big advantage for you!
You have a variety of options on how to pay for your new home. Perhaps you have cash – but with the recent run up in the stock market, this may not be the best time to liquidate your investments.
A particularly affordable alternative might be to put a home equity line of credit (“HELOC”) on your current home, IF you have enough equity in your current home to provide the cash you need to buy your new home. HELOCs tend to involve very low costs to the borrower up-front. They can also remain untapped until you need the money, so you are not paying any interest charges while you are searching for your new home. You can pay the HELOC off as soon as your old home sells, leaving you with less debt (or possibly none) on your new home. Finally, it is something you can arrange for now and be well positioned to jump on a great home when one comes on the market.
Of course, being able to buy without selling may mean you can qualify for a traditional mortgage on your new home. Whether this is the right choice for you will depend on whether and how much debt you want to end up with in the end. If you need a large amount of cash upfront but ultimately would prefer to carry a smaller mortgage (or no mortgage) once your old home sells, consider financing through a combination of loans and pay the second loan off when your old home sells, leaving your with only the first mortgage in the smaller amount. If you intend to carry no debt, there are products with low upfront costs that you can pay off as soon as your home sells.
There are many options to consider when creating a plan that to achieve your long term financial goals – give me a call and I can connect you to trusted financing providers who can help you develop a solid strategy before you find your dream 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
Can we choose a buyer’s agent even if we have seen homes with the listing agents?
The answer is an unequivocal yes! As a buyer, you are absolutely entitled to choose your own representation in a transaction. It might be that the listing agent is in fact the individual that you feel will best represent you – approximately 1/3 of my transactions involve dual agency, and they proceed smoothly for all parties. But if you have been looking at homes or going to open houses and find the perfect agent for you in that process, it is fine to engage that agent as your representative even if you have seen homes with other agents.
It is of course in your best interests to ultimately select and work exclusively with a buyer’s agent. Your buyer’s agent should provide a personalized high level of service to you. When viewing homes, you should expect your buyer’s agent to provide you with information about the home, neighborhood and community to help you in your decision making process. You should expect your buyer’s agent to provide you with an analysis of comparable sales, develop a negotiating strategy and help you analyze and negotiate the home inspection. These are important benefits that you will receive when you engage a buyer’s agent that cannot be provided in the absence of that relationship.
Many buyers use open houses and viewings with listing agents as their opportunity to interview agents and determine who will best represent them as a buyer’s agent. This makes complete sense if you do not have a prior agency relationship that you were pleased with. Transitioning between homes is a very personal process that can, for some, also be very stressful. For many of us, it also involves the purchase and/or sale of our largest asset. The importance of due diligence, reference checking and interviews cannot be overstated when choosing your real estate representative, and once you have made that decision, it is important to communicate that to other real estate agents when interacting with them. I will be hosting an open house this Sunday, 1-3pm, at 30 Wilson Drive in Ben Avon Heights and next Sunday, February 5, 1-3 pm at 1008 Beaver Street in Sewickley – stop by, check out these amazing homes, and if you don’t already know me, I would love the opportunity to meet 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
If there was one thing you would advise us to do to our home this year, what would that be?
Whether you are planning to sell your home this year or not, the best thing you can do to your home this year is a home inspection! We all live in our homes but rarely take the time to stop and give them a careful look. Weather beats up the outside of our homes year round. Caulking fails, flashing fails, paint peels and exposes wood to rot. We forget to clean our gutters on a regular basis – gutters and downspouts fill with decaying debris, causing water to back up into our homes and cause mold problems. We forget to have our furnaces serviced and fittings loosen and cause condensate to leak and rust our furnaces. The list goes on and on. Simply living in and not doing a regular check up on your home, you are leaving it open to the possibility of major repair bills later and major depreciation in your investment’s value. A home inspection will give you a to do list of projects to tackle throughout the year to keep your home in great shape and maintain its value!
You may not think about this until you go to sell your home. Some of the wear and tear may be obvious to a buyer, who will typically have checked out every available home, be able to see signs of your “benign neglect,” and pass on yours because of its comparatively negative condition. Even if a buyer doesn’t’ notice at first, there is no doubt that a home inspector will notice! After working hard to get your home sold, you may find yourself in the all too common situation of being presented with a long list of inspection requests that you need to complete in order to hold your deal together, or worse yet, a buyer who backs out of your deal because the house needs “too much work,” leaving you in the position of having to fix everything and start all over again. A homeowner should expect simply keeping a home in acceptable condition will cost them $3,000 – $10,000 a year, depending on the size of the home – some years wil be more if its time for a major project, and some less. If you’re not investing this, chances are someday you will when you are faced with a long list of inspection issues.
The first thing on my household resolution list this new year is a home inspection and I suggest you add it to the top of your list as well. Give me a call if you need the names of reputable local inspectors.
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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
The holidays are here and our home is on the market – any tips for selling during the holidays?
The holidays can be a challenging time to sell your home – the number of people looking for a home is much lower than almost any other time of year. But those who do look around the holidays are usually very serious buyers and so it is worth making sure that your home presents as well as possible.
Start with a good fall cleanup! It’s definitely time to put your yard to bed! Make sure your yard is well raked and all dead plants removed. Curb appeal is even more important in colder months when the landscaping is less lush and appealing to a buyer. Make sure gutters are cleaned and everything outside is looking crisp.
Make sure you keep your thermostat up for showings – walking into a cold house for a showing can be a real turn-off. Warmer homes will cause buyers to linger when its cold outside – which will allow them time to admire your home’s wonderful amenities. And of course, with as gray as Pittsburgh can be in the winter, be sure all of your lights are on for showings (and that you have working lightbulbs in all of the lights). Its also a good idea to put a few lights on timers if you are away so the home always looks cheerful from the street.
Holiday decorations always add cheer to a home, but be careful not to overdo it! Keep your decorations this year on the more minimal side, and try to avoid religious themed decorations. Be sure that you de-clutter BEFORE you decorate and also be sure that your decorations coordinate well with your décor scheme. And of course, avoid large inflatables in your yard!
Finally, don’t forget that if it snows, you must keep your driveway and walk clear of snow so that the buyers can easily get inside
Do you have any thoughts as to how the election will affect our housing market?
That is the million dollar question these days!
The quick answer: in the long run, I don’t expect it will have any effect. Real estate is very local. What happens in one part of the country often has nothing to do with what happens elsewhere. Pittsburgh tends to be a more cautious market. Our prices don’t escalate quickly and they also didn’t plummet after the recession. We have seen a very slow and steady upswing in our prices and I expect that to continue – because it is slow and steady, as Pittsburgh has always been.
Our sales have, however, came to a near standstill in recent weeks. But the elections are over and we have a new President elect – so where does that leave us?
When it comes to the real estate market, it really doesn’t matter who you voted for or what you think of the election results – it is common when there is an anticipated change in leadership for our real estate market to slow down. And so I expect, as has happened in prior leadership change years, that our real estate sales will be very slow from now until after Inauguration Day. Cautious Pittsburghers will be interested to see who is chosen to fill cabinet positions and what plans are laid out for the coming years. Home purchases are a big event in most people’s lives and they will want a greater sense of certainty before they make a big change like a new home. And then I fully expect, as has been the case with other elections, that normalcy will return to our market.
Because I expect the next three months to be slow in real estate sales, I do expect that will lead to a pent up demand and a strong spring market. If you are thinking of selling, now is the perfect time to put together a plan for selling your house this spring. The election is over and you can be certain one thing will not change – I will still be here selling houses for you!
Why should we consider buying now? Isn’t it better to wait until spring?
This fall, the market has been a bit sluggish, perhaps led by election anxiety, and now the holidays are quickly approaching. We are, however, expecting a very strong spring market. The millennials are expected to make a huge impact on our housing market this spring. Over 50% of home purchases are projected to come from first time home buyers. Many millennials are moving into their first homes, many are moving out of apartments and/or out of cities to a more “family friendly” environment. Sewickley , a walking community that has become so very popular in millennium America, is well positioned to see the impact of that surge.
This expected demand is going to put incredible pressure on our spring market. It is anticipated that prices will be increasing and bidding wars will become commonplace. All of this suggests that now is the absolute best time to buy if you are thinking of moving! There are very few people who buy this time of year, as most are too preoccupied with getting ready for the holidays. While inventory is lower than it will likely be come spring, the absence of many buyers gives you a much better chance to strike a good deal. Why pay over asking price in a bidding war come March when you could negotiate a discount now? Rather than putting yourself at a competitive and financial disadvantage, start the home search process now.
And of course, if you are thinking of selling, carve out some time this fall to prepare yourself for a spring introduction in January/February. Market trends show that the sale surge happens in March, not April, so you should be getting ready now! If you will be selling a starter home (which here can be up to $500,000) and are well prepped and well priced, you should expect a positive market response and maybe even a bidding war!
We may move out and leave our home vacant and for sale – is there anything special we should know?
First and most importantly, you must consider your insurance coverage. If you have a loss and you have not notified your insurance company that you have vacated the home, they may deny coverage for your loss. Some companies may not provide coverage for your vacant home and you will need to switch insurers. Some will provide coverage for a limited amount of time, and some will provide coverage as long as you leave your furniture in place. However, most will deny coverage for any loss related to water, so whenever you leave a home vacant for any amount of time, its important to turn the water off at the main. If its winter time, you should consider having a plumber professionally winterize your home.
Second its rarely a good idea to leave a home totally empty. Some homes do show better without the owner’s furniture, but even in those cases its important to leave bathrooms, the kitchen, fireplace mantles… staged so that the home feels loved and inviting to prospective buyers. Be sure to have a few lights on timers – buyers often drive by homes at night and you don’t want yours looking haunted! Of course, there are professional home stagers that can help you with any level of staging, whether its working with your existing furnishings, accessorizing bathrooms and the kitchen, or bringing in new furniture to fill the empty space.
You should have a house keeper who comes monthly to keep the home fresh and bug free and a yard service to keep the yard freshly mown and free of weeds, as well as leaves rank and snow shoveled. Finally, you should be sure to keep the temperature set at a comfortable temperature – in the winter no lower than 60 degrees and preferable 65 degrees.
Leaving a home vacant certainly makes showings easier, but it does require some extra attention to make sure the home does not feel abandoned and remains appealing to prospective buyers!
What assurances are there to a seller that if they enter into a contract to sell their home, it will actually close?
Reaching an agreement on the sale of your home is an important first step to getting your home closed. However, before a seller has any assurance that a home will actually close, several hurdles must be overcome. First, the inspections have to be completed. In most instances, the buyer has the right to terminate a transaction if they learn anything on the inspection that they are uncomfortable with, and in almost every instance, the buyer has the right to terminate if the seller does not agree to make the buyer’s requested repairs. So a seller has no assurances at all that their home will close until the inspection period is complete, which generally takes 21 days.
The same thinking would apply if the Agreement includes an appraisal contingency – until the appraisal is complete (which also takes 21-30 days), there is a risk that the home will fail to appraise and the transaction will not close.
If the buyer has a mortgage contingency, then there is a risk until a “clean” commitment letter is received from the lender that the buyer will not get their loan approved, in which case the transaction will not close. Usually it takes about 45 days from the date of agreement to know with any certainty that the buyer has received a loan commitment.
There is also the rare instance where a buyer never provides the contractually specified deposit money or second deposit money. This is a breach of agreement and if this happens, it’s reasonably unlikely that the buyer will cure that breach and close.
Finally, very rarely there are buyers who complete all of the steps in the process and just refuse to close. In those instances, the seller is often entitled to the deposit money, but that may seem like a small consolation prize when their home is empty and back on the market.
Working with a skilled real estate professional will help you to manage the risks and move toward a successful closing. So while the short answer is that there is never a guarantee until the home actually closes, with proper management of the details the risk to a seller of moving out and leaving behind an empty home can be minimized.
We have our home listed with another agent and are unhappy with the service we are receiving. We can’t help but wonder what process we should have gone through to find the right agent. Any ideas?
When choosing a Realtor, it’s important to do more research than asking a colleague, friend or service provider who they would recommend. I often help my clients find an agent in the new city they are moving to, and I start online.
First, I look for agents who do a lot of business in the area my client is moving to. How many listings does the agent have? I look at her sold listings on Zillow and see how many she has sold, both in the area and in the price range my clients will be buying into to make sure she has the experience they will need.
I then look at her individual website for her certifications and qualifications. These credentials require extensive commitment to training by the agent, and training means the agent is best equipped to achieve the very best result for you. Much of this training requires years of dedication to learning and excellence. All agents are not brokers, for example. An Associate Broker’s license takes a minimum of three years commitment to additional learning and hands on experience. If you are buying or selling a Signature home, there is an even higher level of training available to an agents such as Distinctive Homes Specialist. Christie’s Great Estates Specialist. These programs add yet another level of skill and expertise to an agent’s repertoire.
I like to say “a monkey can stick a sign in your yard.” It takes years of training and experience though to sell real estate while making it look smooth and easy. By earning credentials, we learn how to price optimally, how to market strategically, how to use the latest technology for your benefit, the complex ins and outs of our lengthy Agreement of Sale (the intricacies of which are just waiting to ensnare the inexperienced), how to negotiate for success, how to navigate the rough seas of inspections and how to close on time. Every one of these skills inures directly to your benefit and your bottom line.
I also look to see how developed her website is (is it more than a simple blurb) and how many reviews/ quality of reviews she has on Zillow. This gives a sense of how committed the agent is to the business.
Finally, I interview the prospective agents to determine marketing plans, detailed knowledge of the area and their personal market statistics. So take the time – get to know our credentials – and make an educated decision when choosing your next real estate agent.
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!
We want to downsize but are not sure how to go about that process – do we buy our new home first or sell our current one first?
Your question touches on one of the trickiest scenarios in real estate – sell first or buy first? The answer is different depending on an individual’s circumstances. Buying first is usually the best choice – you can take your time finding the perfect next house. And you can move out of your current home before listing it for sale, which will allow you to stage and present the home without clutter and without the hassle of having to tidy up for showings. However, buying first requires a few things. You must qualify to own two homes at once. You must have a down payment for your new home in a savings account, or an existing home equity line in place on your current home that will allow you to pull out the cash you need for a down payment. And you must be okay with the concept that you may be carrying two homes for an undefined amount of time.
If you do not qualify to own two homes at one time, do not have the required down payment for the new home, or are just too nervous about owning two homes for an undefined amount of time, then your only option is to sell first. It’s a good idea before putting your home on the market to get pre-approved for your new home purchase (you want to be sure you qualify before selling yourself out of your existing home) and to start looking online for new home possibilities. When you get an offer, you may need to act quickly. The buyer for your home is unlikely to be able to wait for you to figure out what you are going to do next. If you need to wait to figure that out, you may lose the buyer. Additionally, to purchase a new home, that seller is likely going to expect that you have already moved through inspections on your current home and have a solid deal. Therefore, you will want to agree to a longer closing date on your current home to give you time to get through the inspection negotiations and select a new home. Of course, there is always the option of renting if you cant find the right home!
It is tricky, but with proper strategic guidance it can be accomplished smoothly and successfully.
We have a very old (25 years) furnace.. It is still working well and we don’t have the cash to replace it. We are planning to sell our home next year. What advice do you have?
A 25 year old furnace is a very old furnace, well beyond the useful life expected of such equipment. If a buyer makes an offer on your home and then finds out how old your furnace is, there is a very high likelihood that they will be asking you to buy a new furnace as part of their inspection response. There are a few things you can do to set yourself up for a positive outcome.
First, when you complete your seller disclosure, be sure to write on the document that the furnace is past the end of its useful life and may need to be replaced soon. Price your home accordingly and be sure that your agent highlights to buyers agents that you have priced your home at a lower price point because of its older mechanicals. This will prevent the buyer from expecting you to buy them a new furnace – they should take the age of the furnace into account when making their offer.
Second, put a home warranty on your home when you list it. This will provide coverage to you should the furnace break while you own the home and will give the buyer 12 months of coverage should anything happen in their fist year of ownership (and it is renewable).
Finally, consider buying a new furnace. Many contractors are willing to accept payment at closing if you make arrangements for this upfront. With a new furnace you can ask more for your home and are more likely to draw more enthusiasm form the buyers who do see your home.
Our home has been on the market for a while – we are getting a fair amount of traffic but so far, no offers. We are concerned that others are selling and ours is not. What are your thoughts?
Selling a home is a partnership – a realtor cannot waive a magic wand and make a home sell. An agent’s initial primary job is to make sure that your home is well advertised and to provide honest advice and feedback about condition. If you are getting a reasonable amount of showings, then that’s a good sign that the marketing is working well. Hopefully, you have gotten feedback from these showing and have taken steps to overcome any perceived drawbacks. Some things can’t be overcome – if a buyer needs an extra bedroom or garage, there isn’t much to do about that, but if there are concerns that you can address, be sure that you do.
Take a quick tour of your home, invite a neighbor over for a look or visit other open houses to make sure your home is presenting as well as your competition. Take staging to a new level. If you have checked all of the typical boxes (no wallpaper, neutral carpets throughout, neutral paint, no clutter, removing personal items such as family photos and religious décor…) take the time to consider what else YOU can do to help improve the chances of an offer. If your rooms don’t look open and spacious, remove more items to a storage facility. Did you remember to clean your windows this spring? Dirty windows can make a home very dull inside. In this heat, have you been watering your landscaping so that it is alive and thriving? How about your lawn? Green or dead? Have you removed the signs of your own wear & tear – are switch plates and walls clean and smudge free? Have you de-cluttered too much making your home sterile? Pottery Barn is still the easiest look to sell—make sure that while your home is reasonably free of personal items such as family photos, it has some warmth – fluffy white towels in the bathrooms, attractive throw pillows on couches and beds… Unsure of what you need? Bring in a home stager for some professional advice. Remember, selling a home is team work – you need to be doing your part!
Finally, price must constantly be evaluated. Keep in mind the oldest rule of thumb in the book – 13 weeks or 13 showings – if you still don’t have an offer, its probably price. Yes, improving condition can improve price. But if you are getting the showings and you aren’t drawing an offer and can’t make significant changes to the home to overcome objections, you must reduce your price, or be very patient waiting for what could be years for that one buyer to come along.
Friends of mine just had the sale of their home fall through because of a home inspection. How can that be prevented?
Yes – sellers should have their home pre-inspected before listing to prevent these kinds of issues! Finding a buyer and agreeing on a purchase price is only one small component of a real estate transaction and yet it is often all that sellers focus on. What happens between then and closing, however, is often the more difficult part of the process. Issues with a home uncovered on an inspection often cost a seller thousands in unexpected repairs and when sometimes even result in a terminated transaction. Inspectors are incredibly thorough (sometimes even finding problems that aren’t problems) and so every home seller should anticipate that the home inspector will find deficiencies and that the buyer will expect correction.
All home sellers should seriously consider having their homes pre-inspected. For as little as $250 – $500 for a basic pre-inspection you will quickly have an insiders view of how a buyer’s inspector will assess your home. Use the inspection as a maintenance check list – find a handyman to come in and fix all of the little things so that they don’t come up again on a buyer’s inspection. If there are larger items that you do not have the ability to repair, such as a roof nearing the end of its useful life, get an estimate or two for the repair or replacement. Note the issue on your disclosure and include a copy of the estimate. This should prevent you from having to credit the buyer for the repair later – buyers are supposed to review the disclosure and take any disclosed items into account in making their offer to you.
Of course, if your inspection is good or just has a lot of little items that a handyman can fix, attach the handyman’s receipt showing the repair provide a copy of the inspection in the house for buyers to see with a note indicating that the home has been pre-inspected and repaired and that they buyer can buy with confidence knowing that they are buying a house in great shape! In a town full of older and aging homes, this will really help your marketing!
So before you list your home – consider a pre-inspection. It will give buyers the confidence they need to move ahead with a purchase, may combat concerns that there are likely problems that would lower their initial offer to you, and will hopefully result in a smooth transaction once you do have your home under agreement.
How much more “life” do you think our spring market has left in it?
My crystal ball is out being repaired so I’m afraid my response will need to be a best guess, without it’s reliable aid! In all honesty, what the market is or is not doing in a given week or season is never more than a guess. There are certain norms that we have come to count on: the spring market is stronger than the fall market; homes in the Village sell faster than homes “up the hill,” which often require more patience. But being able to predict how long buyers will continue buying in any season, or how many buyers companies may transfer in, or how many buyers will accept the jobs they are offered and actually come to Pittsburgh, choosing Sewickley as their home base, is impossible to predict with any certainty.
And of course, there is the added uncertainty of what impact a Presidential election has on our market – historically it often slows around election time. It’s been a strong spring market. Buyers have come in waves – there was a huge surge in the March. Sales have been strong in certain brackets and not in others, but that could change on a dime. We saw a small surge “up the hill” but that market has quieted again.
To answer your question, I expect sales to continue along their usual patterns, with a reasonable number of sales in June and some in July as well. We are in our final push of families who need to be in for the school year. I expect that things will slow as they always do in August when most people desert Sewickley! Usually things pick back up again in October. If your home hasn’t sold yet, there is still a chance it could sell this spring, particularly if its well conditioned and priced perfectly. If you are thinking about listing in the future, it’s the perfect time to give me a call and develop a strategic plan for entering the market in the months to come!
Why does it seem that almost every home we view online is so neutral? What happened to all the color?
I recently reviewed a portion of a local market in the mid-price ranges and interestingly, almost every home that is under agreement has zero wallpaper and is painted in a neutral color palate (including beiges, grays, greiges and a few other nearly neutral tones). Only one of these homes had any true color on its walls, and that home took nearly a year and several price drops to go under agreement.
Professional home stagers have been counseling for years to remove all wallpaper before putting your home on the market –asking someone to buy a home with wallpaper is as personal as asking them to buy someone else’s wedding dress. No matter how beautiful, it’s rarely done and appeals to very few. Stagers are also quick to recommend neutralizing your paint palate. While there are some warmer neutrals, these days the cooler neutrals like gray and greige are the more popular tones with the buying public. Even having a more colorful child’s room can be a big turnoff.
It seems the selling public has in large part heeded this advice. The homes that are actually selling for the most part have been stripped of their wallpaper and painted in a more current, more neutral paint palate. Absent a compelling reason to choose a home that is not “sale ready” such as a severely discounted price, buyers are far more likely to overlook other “road blocks” to a sale such as a lack of a garage than they are to look past a personalized and colorful decorating scheme.
Does this mean that we must all live in color-free homes? Of course not! Your home should reflect your personality and your personal furnishings undoubtedly tie your color choices together. But it is important when we move toward a customized design scheme to remember that when its time to sell, part of the cost of selling will be repainting these spaces back to a more neutral palate!
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. 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. Some agents choose this strategy because they want to keep all of the commission for themselves and that only happens if their own buyer is the successful bidder. 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 17 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.
Why do some homes seem to fly off the market and others take years to sell?
Location. Price. Condition. These are the three most important factors that go into how long a home is on the market. Unique attributes and depth of market segment would be fourth and fifth!
Location is really where it all begins. If your home is in an easy to sell location, the market will be far more tolerant of imperfections in other areas, such as wallpaper or a slightly aggressive price. Location is sometimes relative to a particular buyer – their work address may make one part of town more desirable than another, but generally speaking, buyer excitement about properties rises and falls with address.
Condition is also a very important factor in pricing. Homes that look like they are straight from the pages of a Pottery Barn catalog tend to sell more quickly, and tend to bear higher prices than are sometimes warranted. Those that are dated, with older wallpaper and carpeting, for example, tend to sit – unless, of course, they are in a hot location and deeply discounted, in which case our stable of “flippers” will be ready to buy with cash and close quick for the opportunity at a profit when they renovate.
Price is the easiest of all factors to change. If priced well, even less popular locations and homes that have condition challenges can sell quickly. But if you are trying to match the price of competing sales that were in better locations, better condition or with more amenities, you may find your home takes far longer to sell.
Finally, you may have a home with unique features. A home with no off-street parking can be a challenge to sell at any price point, and it is a matter of being patient and waiting for the right buyer who appreciates the home’s other attributes. You may not have a master bathroom. You may not have any green space in your “yard.” You may have a kitchen barely big enough for one. You may have only two bedrooms. There are many factors that could lengthen time on the market even with perfect condition and price. And of course, depth of the market segment is relevant as well. The higher you go in price, the fewer qualified buyers there will be and the longer your home will take to sell.
Our home is on the market and not sold – where are the buyers this spring? How can we get it sold?
Our spring market has seen some very unusual fluctuations.In some weeks there have been surges, with several houses going under agreement in a week, and other weeks have been quiet.The one million dollar price range has been hot for the first time in a couple of years.The under $300,000 market is also moving very well.If you’re home is in the “middle” then yes, it’s been slower than expected and it’s hard to know why.Speculation has included the election, of course, as well as cutbacks in some oil and gas companies.
Sadly, real estate agents don’t have magic wands that we can wave to make a buyer appear for your home.If it’s been on the market for more than a few weeks it’s likely the local prospects have seen it and determined that its not a fit for them.The most likely buyer is someone currently outside the area, and there is just no predicting when a company is going to relocate someone who might be looking for a home.
Therefore, what you must do is make sure it is the best choice in the price range when a buyer does arrive on the scene.It is important to make sure that it shows perfectly – there is a lot of competition – other sellers who really want a buyer as well.I have written many articles that you can find on my blog at www.kathebarge.com that cover critical topics like de-cluttering and staging, and updating your home.It might be time to bring in a professional stager.It might be time to update paint colors, freshen any dated carpets, update lighting fixtures or baths. Many of these things can be done very cost effectively and could give your home the edge with the next buyer through town.
It may also be time to have a professional appraisal done of your home, both to check to make sure that you have it priced competitively and to give any buyer prospects confidence that the value is there.
In the end, homes with completely updated features and current design palates continue to be the first ones to sell.If that’s not your home and changes aren’t possible, then review price, do the best you can to stage and de-clutter, and then be patient.Buyers can be very fickle – your buyer will come!
How much negotiation should we expect when buying a home?
Some homes sell for 100% of asking price, even months after they have come on the market. Others sell for 25% off ask. How does a buyer even begin to know how much to expect to “negotiate off” the asking price of a home?
Community practices are a good place to start. In the North Hills, for example, homes typically sell for very close to asking price – if a home is priced too far above what the market will bear, buyers simply sit and wait for sellers to reduce. In Sewickley Heights, on the other hand, large discounts are commonplace.
It’s also important to consider how long a home has been on the market since it’s last price reduction. If it’s been a few months, there may be more room to negotiate.
The time of year and market activity and other important factors. In the spring market, homes are far more likely to yield higher realizations. This has been a very hot spring market – if you are buying this time of year and looking for a large discount, you may be disappointed.
Listing agent pricing styles are also relevant – some agents price to allow for large amounts of negotiation and others prefer to choose a price very close to market value in an effort to engender more enthusiasm about a home –knowing the agent’s average realization will help you determine the best approach to take if you actually want to be successful in your negotiations.
Finally, and most importantly, its important to review and understand the comparable homes, including price per square foot and neighborhood particularities. If a home is priced at or below the price at which comparable homes in similar locations have sold, it’s highly unlikely a deep discount offer will succeed.
Before you determine how much to offer and how you will approach your negotiations, ask yourself how much you want to own the home. If you are dreaming about raising your family there and your goal is to actually own the home, take a realistic look at the above factors before diving too deep with your offer.
Is it possible to buy a new home contingent on selling our current home?
It certainly is possible to make an offer on a new home contingent on selling your current home! However, an offer with a home sale contingency is not a strong offer. You are asking the seller to stop marketing their home in the hopes that you will sell yours, which can feel like a big gamble to the seller. If this is the direction you need to go in, there are some important tips to keep in mind.
Sellers are more likely to consider your home sale contingency if their home has been on the market for a long time with no other interest, if we are in a slow market season (fall) and they are unlikely to have any other serious interest in the short term, and/or if you are offering them a very high price which makes it worth taking a chance on you. If you want your offer with a home sale contingency to succeed, make them an offer at or close to asking price.
Sellers are more likely to consider your home sale contingency if your home is already on the market and you can show that it is priced well for a quick sale and is getting significant showings. If you want your offer with a home sale contingency to be accepted, don’t list your current house at a top-of-the-market price.
Sellers are more likely to consider your home sale contingency is you choose the type of contingency that allows them to actively market the home to other buyers. Of course, from your perspective you would prefer to lock the house up, but that is unlikely to happen. The right to continue marketing contingency at least allows you to know that you can buy the home at an agreed upon price as long as you get yours sold before another buyer comes along.
Of course, two better options include getting your home on the market and sold so that you can make an offer contingent only upon it’s closing, or exploring options with a mortgage broker that would allow you to make a non-contingent offer.
Dear Kathe, Is a seller expected to help pay for the buyer’s closing costs and if so, how much?
Sellers often contribute to buyers’ closing costs in lower price ranges and in first time home buyer situations. Typically buyer closing costs are not less 3% of the cost of the home and may be as much s 6%. Buyer closing costs include expenses such as transfer taxes (1%), lender fees, title insurance, property tax proration, homeowners’ insurance premiums and pre-paid mortgage interest. These fees can add up quickly. Sometimes buyers do not have enough cash saved to be able to pay their required down payment and their closing costs as well. They may be very well qualified to buy in that their salary is high enough to afford the monthly payment, but they just don’t have enough cash saved.
When this happens, buyers will look to sellers for help in paying the closing costs that the buyer would normally have paid. This is normally expressed as a percentage of the purchase price. For example, the buyer might ask the seller to pay 3% of the purchase price toward their closing costs. The seller is automatically netting 3% less in this scenario, before they pay their own closing costs which normally range between 7% – 8% of the sales price.
Before you jump to the conclusion that sellers often won’t agree to contribute toward a buyer’s closing costs, stop and look at the greater picture. Normally sellers who help with closing costs are receiving 100% (or very close to that) of their asking price. On the other hand, it’s a rare day that any listing sells for 100% of its asking price, and the average “realization” before seller expenses in Quaker Valley School District is less than 90%. So paying 3% in closing cost assistance but getting a 100% (or close) offer might be your best deal!
Dear Kathe:
When you buy a house, what sorts of things can you paper separately so it doesn’t show up as purchase price? I know of a $1.5M sale that was recorded for $1.3M, for example.
There are times when a buyer may want to reflect a lower price on their deed than what they may initially be willing to pay for a home. There are several ways that this can be done if that is your goal. One option for a buyer wishing to reflect a lower deed price is for the buyer to offer to pay the seller’s commission. For example, if the seller of the home you seek to buy is offering a 6% commission and you are planning to offer $500,000, if you offered to pay the real estate commission of $30,000, you could reduce your offer price, which is reflected on your deed, to $470,000.
At the time of closing, a buyer and a seller each pay a 1% transfer tax in our area. You could also offer to pay the transfer tax that the seller would otherwise have paid, in my example being $5,000, and reduce your offer accordingly, in this case to $465,000.
Finally, if you are planning to buy any of the personalty with the home, you can schedule that separately as well. For example, you may have asked the seller to include in the sale their pool and ping pong tables as well as all of their custom draperies and central vac equipment. You may feel these items are worth $20,000 and offer to buy these items separately from the seller, thereby reducing the offer price in this case to $445,000.
With these three cost allocation methods, you will have reduced your deed price from the $500,000 you were willing to pay to $445,000 offer price which will be reflected on your deed, plus $55,000 in allocated costs. Of course, to do this you would have to have the cash on hand to pay for the allocated costs plus your planned down payment – banks will not consider the amount you pay for any such allocated costs as part of your down payment. In this case, you would likely need at least $150,000 cash on hand to utilize these cost allocation strategies. Accordingly, these strategies only work for homeowners who have saved large sums of cash that they are willing to invest in their homes.
How do we decide how to price our home? We know buyers like to negotiate!
Deciding on an asking price is a challenging task, particularly in Sewickley. Interestingly, in Pittsburgh’s North Hills, sellers realize much closer to their asking price, often 97% and higher. However, if a property is overpriced in the North Hills, buyers will simply write the property off – low-ball offers are not made. In Sewickley, however, we have developed the unique tradition of negotiating fairly heavily on the sale of a home. In prior years, the average realization was only 89% and offers often start as low as 80% below asking price. So how is a seller to price a property? If a seller prices 20% over the price a home is likely to sell for to allow for negotiating, it is likely to be seen as “overpriced.” If the seller prices only 2% over likely sales prices, many buyers will factor in the large discounts we often see and bring in inappropriately low offers. Developing a strategy for both pricing and marketing is therefore critical to make sure that a home is both well received and does not sit and get stale on the market.
If you’re facing a deadline due to job relocation or other reasons, then you need to price competitively, even more competitively than expected in today’s market. You’ll need to list at significantly less than your competition. And keep your commission higher as an incentive for a quicker offer. That may seem tough to stomach, but it’s better than continuing your monthly loan payments or the hassle of trying to find tenants to rent your home and of being a landlord for a year or more.
If your home has been listed for some time, but not generating interest, you may need to lower your price. Of the three elements that sell a home – price, location, and condition – price is the one you’ll have the most control over. Review your listing company’s programs and marketing, making sure that you are taking advantage of all of them.
Make sure your home shows better than its competition. Its condition should outshine all of the other listings in its price range. Take time to de-clutter, store off site what you can live without, stage and make sure you attend to all of the little maintenance projects you may have been putting off.
In the end, Sewickley statistics show that if your home does not have an agreement on it within 75 days of the listing date, you will not achieve 90% or more of your original asking price. This makes the original list price a critical decision and also makes it clear that after 75 days, it is absolutely essential to reevaluate your price in light of market feedback and price.
At this point in our journey to your new home, hopefully you have resolved any home inspection issues that you have and your financing is in process.
There are many pieces to the home financing puzzle that you will not see and some that you will. Financing has gotten quite tight now and you will need to be prepared for a high level of documentation required by the lender. They may ask you to document sources of deposits. They may ask you to document other expenses you are responsible for. They may need copies of letters of employment or bonus guarantee letters. Be prepared to respond quickly to any and all requests. While you are addressing these requests, the lender will order an appraisal to confirm value of the home. There is a range of reasonable in which a home may sell – the lender is simply trying to make sure that you are in that range.
Once your loan is approved you begin the long wait until closing. If you had a particularly delayed closing, you will begin to wonder if you are supposed to be doing something else. The next steps happen right before closing. You will set up your insurance coverage on the home with your insurance agent a few weeks in advance. Coverage options vary widely so you will want to work with an insurance agent who will thoroughly review all of your options with you. About a week before, you will need to call the utility companies to move the utility bills to your name. If you forget to do this, the utilities will simply be turned off and it will cost you more to get them turned back on again. For water and sewer, you will need to show up in person to get them connected, so be sure to schedule that in to your work schedule. Finally, the day before closing you will do your walk through to make sure the home is as you expected it would be. If the seller accidentally removed something you thought was to remain or forgot to make a requested repair, now is the time to raise those issues. Once you close, so does your window of opportunity to resolve any last minute concerns with the seller.
On the day of the closing, you will spend about an hour signing many documents and presenting a cashier’s check for any balance you owe above and beyond the mortgage. Once that is completed, you will receive the keys and may begin the happy process of unpacking into your new home!
If you’re following along each week, by now you have been pre-approved for a loan, selected a Buyer’s Agent, looked at and selected a Property, made an offer and are negotiating for your new home!
The process of negotiating for a home is one of give and take. Your Buyer’s Agent should be able to explain negotiating norms in the areas in which you are interested. For example, in our North Hills communities, Sellers price their homes more tightly and they generally sell in the range of 98% of list price. If you bring an offer at 90% of list price, you may not even get a response. In Sewickley, there is often a bit more flexibility. Keep in mind, however, that price isn’t the only concern. Closing date is important – if you can’t get the date you want, you may need to pay for temporary housing and storage of your things. Inclusions are important – if a Seller starts removing things from the home, they are things you may need to spend money to replace and this may affect what you are willing to pay for the home. You must keep all of this in mind as you try to negotiate to a final Agreement to purchase the home.
Once you and the seller reach a deal, both parties sign the Agreement and you are officially “under agreement.” At this point, the contract takes over and specifies exactly what you must do next. Your Buyer’s Agent should lay all of this out for you in easy-to-use timelines. This is absolutely critical – if you miss deadlines, you could lose your deposit money in some scenarios. You generally have 1-2 weeks to apply for a mortgage. Do not delay. The lending process is quite complex these days – there will be a lot of detailed information requested – this will take you time to compile.
At the exact same time that you are applying for your mortgage, you will also be inspecting your new home (yes, it will be very busy for a few weeks). More on inspections next week…
Hopefully after reading my article last week, you were motivated to get serious about buying a home and began the process. As I discussed last week, you should be saving your down payment, keeping your credit in excellent shape, getting pre-approved by a recommended lender and researching and selecting a Buyer’s Agent. So what’s next.? The fun begins!
Your Buyer’s Agent should set you up to receive new listings via email as soon as they become available. To streamline the process, it is a good idea for you to pre-screen these homes before going to see them. Check them out online and on google earth, do a drive by to make sure there is nothing that you would object to that is readily apparent. Once you have done your initial screening, go to see the home as soon as possible. Our inventory is at record lows. If you love a home you can be sure that there are at least a dozen other buyers considering the home and you will need to be ready to make an immediate offer. Along these lines, it is important that you have developed a relationship with your Buyer’s Agent and trust her judgment. When the right home becomes available you may have to pay full price to get it, and you need to be working with someone you feel you can trust on those decisions. In this market there is rarely time to test out the seller if it is a great house and is well priced.
When making the offer, allow about 2 hours to go over the contract with your Buyer’s Agent. You will want your agent to review the details with you and there are many decisions you will need to make when writing the offer.
You will need to work with your agent to decide how much to offer initially, how much hand money to put down, a closing date, the mortgage terms you plan to apply for and time periods for inspections. You will list the items that are in the house that you expect to stay there, such as dishwashers, refrigerators and window treatments. There are many other custom terms you may want to include – you may want to include an appraisal contingency. You may be looking for the seller to address certain deficiencies that you noted while walking through, such as cleaning gutters. All of the things that are important to you about the home must be written into the contract or they will not happen in the future. Oral agreements are not binding when it comes to the sale of property. Your Buyer’s Agent has hopefully paid close attention to everything you noted while viewing the home and will make sure that the Offer reflects all of your wishes.
Once you have signed the offer (and no, you can’t just make a verbal offer – as mentioned above, everything concerning land must be in writing) the offer will be presented to the seller and you will begin negotiations with your seller. Stay tuned as the process of buying your home continues to unfold next week…
Buying a home is one of the best choices you can make. Rather than paying money to your landlord so that he can be closer to owning an asset outright each month, when you make your monthly payment each month a portion actually goes to your benefit – when you sell the home someday, as long as the market is in a good place, that money is refunded to you (called equity) and you can use it to buy again. It is, in effect, a forced savings plan and over time you can amass quite a large amount of savings while you are simply doing what you would have done otherwise – paying for housing each month.
To buy a home, however, you must have two things to start: a down payment and good credit. There a host of specialty loan products for first time home buyers far too extensive to review here, but figure on saving no less than 2.5% of the purchase price for a down payment if you are able to use an FHA product or 10% if you are going to use a typical mortgage. Credit scores are also key. Again, there are many things you can do to help or hurt your credit as you prepare to buy your home. Do not open any new credit – don’t buy any new cars. Pay all bills on time.
When you think you are ready, start by finding a full-time buyers agent. We now have Buyer’s Agency in this state and you need someone looking out for you from the outset. Check the agent’s website, review references, interview if you wish. Make sure you understand what the agent will do for you and be sure you have done your homework and are selecting the best agent for your needs. Once you select an agent, you will need to sign two documents: a Consumer Notice, informing you of your rights, and a Buyer Agency Agreement, whereby you actually hire the agent to work for you. While the seller still pays the commission, an Agreement is still required to create the legal relationship whereby the agent is working for you and not the seller.
Your agent should then refer you to a mortgage broker for a pre-approval. The broker will review your assets, liabilities and credit and give you a written statement of how much you can afford to buy. This step cannot be skipped. There is no sense looking at homes you can’t afford.
With pre-approval in hand and agent on board, you are now ready to begin the home buying process…stay tuned next week and I will continue to walk you through the process…its when the fun begins!
We are planning on buying a new home in 2016 and are waiting to see what comes on the market this spring. Is there anything we should be doing while we wait?
With such little inventory and so many buyers in the market, when a property comes on that you are interested in, you must be really ready to buy. Bidding wars will become commonplace this spring and if you want to win, you must be the strongest buyer the seller considers. What does this mean?
First and foremost, it means having your financing in order. Contact your mortgage broker today, before you start looking at homes. But do more than just run your salary and social security number by him. Ask him to start the approval process and trouble shoot in advance any issues he might see. Don’t make the mistake of assuming that just because you have a good job and pay your bills on time, getting a mortgage will be easy. Lenders have tightened up on their lending ratios – you may be surprised to find out that you have too much debt outstanding and need to pay off car loans or old student loans before you will be approved for a mortgage. Do that before you enter into a contract to buy a home.
What if you have a home to sell? Sit down with the mortgage broker and see if there is anyway that you can buy without selling. Home sales contingencies are rarely accepted by sellers and when they are, they are highly unlikely to work out. Putting a home sale contingency on a home just marks the home to the public as a “wanted” home making it more likely that your offer will drive in another offer from a buyer. Why do all the work so someone else can buy your dream home? Strategize to find a way to buy without selling, even if it means eating macaroni and cheese. Sound too risky to you? Then get your home on the market right away and be prepared to rent for a few months if the home you love isn’t on the market when you are ready to buy.
There are many strategies we can use to make you a strong buyer in our unusually strong seller’s market. Give me a call and we can put an action plan in place for you to be the winning buyer when your dream homes comes on the market!
I’m not an interior designer, but yes, after many years of all silver, all the time, brass is starting to come back. However, the brass that is “in” is not the shiny brass from 15 years ago. The new brass color that is gaining popularity has a softer, non-shiny texture, not the glossy brass of days gone by. Does this mean we all need to run out and change our silver out for the new “soft” brass? Absolutely not! Silver tones are still fashionable, but if you have a house full of shiny brass, it may be possible to replace some of it with the newer brass finish and blend the new with the old to create a harmonious look, for a more trendy look without a total overhaul.
The important take away here is that more than anything, consistency sells. When working on your home, whether it is to prepare it for market or remodeling just to live in with a possibility of a sale some day, choose a theme and stick with it. Home buyers always respond more positively when an entire home “sings the same song.” For example, if you use silver tone metals, use them everywhere – in the lighting, faucets… throughout the whole home. If its burnished bronze, make it all that. Selling difficulties start when one bath is silver and the next is brass.
If you have hardwood floors, unify the stain color. One room should not be light and the next dark. Unify carpet colors (its fine to use a berber in one area and plush in another, as long as the color tones are the same). Every room does not have to be painted the same color, but the colors should complement each other and flow together. If you use grays and greiges, for example, then having a gold living room might feel out of place. Having an overriding design theme that carries through your entire home, whatever it is, will make your home more appealing to buyers, and bring you a faster sale for more money. And so yes, its true, brass is making a come back and if done correctly, can be used to create a trendy feel in your home.
A friend of ours lost in a bidding war for a home – if we find ourselves interested in a home that everyone else is also interested in, how can we win?
Our market is getting hot right now and bidding wars are starting to happen once more. Buyers, there are a lot of important lessons to be learned here. The first and most important is that it is always better to avoid a bidding war! If you see a home that you like, do not delay! Our inventory levels are at historic lows and there are too many buyers entering the buying pool. Don’t sit by the sidelines over-analyzing. Make an offer!
Lesson two: if you find yourself in the unenviable position of being in a bidding war, ask yourself: What price is it at which, when you see the home sale amongst the sold transactions in the Sewickley Herald, will you say “darn, I would have paid that price.” If that’s the way you feel, that’s what you should be offering. Consider at what price, when you read the Sewickley Herald, you can sleep at night, knowing you “would never have paid that much for that house.” Offer just below that price, and know that you gave it your all and will, in fact, be able to sleep at night if someone else wins.
Lesson three: do know that a request from the seller for your “final and best offer” does in fact mean your final and best offer. There will probably be no second chances. Refer to step two above in determining that price, and then do not pull back thinking you will be leaving money on the table if you offer significantly more than the other bidder. You will be enjoying the home for years to come and it just won’t matter when you are the one inside and not the one driving by outside, pining about the one that got away! So give it your very best shot! Do not assume that you will be given a second opportunity to improve your offer either – offer your best offer out of the gate to increase your chances of success.
Sellers, a special message for you: bidding wars are starting to happen once again, but if you want to be the subject of one, you must still prep your home perfectly and price it realistically. Today’s buyers are very savvy and while prices are inching up, it’s a slow and steady rise and sellers who prepare their homes (see my blog for advice on what to do) are the most highly rewarded!
When it comes to selling a home, success is in the detail. Attention to details in the contract is critical. But so is attention to detail in the preparing your home for sale. Last week I focused on the type of details you don’t want to overlook in prepping your bathrooms for a buyer’s eye. Today I turn my focus to the kitchen. Your kitchen is absolutely key to the sale of your home. A buyer may not decide definitively that he will buy your home on the main level, buy he very well may decide he won’t buy your home on the main level. That’s why it’s so important that the main level of your home sparkle, and the kitchen is the most anticipated component of that level.
Like bathrooms, the kitchen should be as clean and updated as possible. Again, a good detail cleaning is where you should start. Clean inside of cabinets and drawers (buyers do open them). Get rid of or store items you don’t use all of the time – it is important that it appear that you have plenty of storage space – crowded cupboards give the wrong impression. Clean the outside of cabinets as well. Polish all stainless appliances with stainless steel polish and keep them that way throughout the listing. A can on stainless steel wipes will make this very easy for you. Make sure floors (including corners) are squeaky clean – if your floor is tile, be sure the grout looks clean. Kitchens are high traffic areas, so be sure your woodwork is in great shape. Double check baseboards and touch-up paint anything that is beginning to look dingy. It goes without saying that any wallpaper needs to come down. Any walls reflecting wear and tear should also be repainted.
Be sure your light bulbs are the highest wattage possible so that your kitchen looks great on even our grayest of days. Dust off all light fixtures and of course, replace all burned out bulbs. Clean your refrigerator and your oven. Remove everything from your countertop except a few decorative type items. It’s a great idea to clean out a cabinet or a drawer so you have a place to stash things when you find out you are having a showing. Take everything off the front of the refrigerator and from its top as well. If you have very old appliances and you live in a higher-end home, replacing those appliances may be worthwhile to fully maximize the value of your home. Another item to evaluate in higher end homes are countertops. These days granite is typically found in any home listed over $450,000. If your home has ceramic or Formica tops, granite will likely aid in selling your home faster and for more money. Less expensive improvements that can also pay dividends include updating cabinet knobs and lighting fixtures. This should get you off to a great start in creating a kitchen every buyer will love – if you would like a custom evaluation of your own kitchen, please feel free to give me a call!
It’s snowing outside – hard to imagine this is a good time to list our home. When is it a good time to get our home on the market? Any last minute pointers?
The holidays are behind us and we are ready to start a new and exciting year. Just two weeks old, the 2016 real estate market is already abuzz — ahead lies the promise of another great year. If you thought we were in the slow real estate season then you thought wrong! This couldn’t be further from the truth. Pittsburgh’s inventory levels have never been lower for longer and there has never been a greater opportunity to sell your home. Homes that are coming on the market now are moving fast. In prior articles I have discussed the importance of readying your home for sale and there could be no better time to dig out those articles and start getting your home ready to sell. The spring market has started — there is no doubt and there is no time to lose! In the next few articles, I will focus on the details of getting your home ready to sell, so be sure to check in each week. This week I will address your bathrooms.
Bathrooms are a key component to selling a home. It is critical that they be both clean and as updated as possible. Clean is less obvious than you might think. In addition to the basics, grout should be clean (consider renting a steamer), tubs and showers should be caulked. Everything should be in good working order. Commodes should be firmly bolted down, lids should match the toilet, sinks should not drip, drain stoppers on sinks and tubs should properly close and all plumbing hardware should be in good condition and should not be significantly tarnished or corroded (if they are, you can replace them with a reasonably inexpensive fixture).
The bathrooms should also be as updated as possible. It doesn’t have to cost a lot to give a bathroom a fresh look. Remove all wallpaper and paint in a color that is reasonably neutral and brings out the best in the tile. Change lighting fixtures (there is a huge selection of inexpensive bathroom lights online) and cabinet hardware if it is dated. Consider painting old cabinetry either a shade of white or black. Replace old mirrors, or repaint their frames for an easy update. New tile and granite tops may be necessary to bring out the full value in your home if it is in a higher price bracket, but for many homes this level of expense is not necessary to create a fresh, updated and welcoming look. Take the time to take this list into each of your bathrooms for a detailed review (or call me and I will be happy to walk through with you and help you with this review) and it will pay dividends this spring in a fast and lucrative sale.
We’re hoping to move in the New Year and are beginning our search online – is there anything we should keep in mind?
The majority of buyers will shop online during their search for a new home, and many will actually begin their search there, like yourselves! The real estate industry has come such a long way in the 17 years since I started in this business. Back in what feels like a different century (perhaps because it was), we used bulky multilist books that were delivered every other week to find homes for our clients. If you were in good with your agent, she might lend you a coveted book to take home and peruse! Now you can access the entire nation’s real estate inventory on national websites such as realtor.com in the comfort of your own home!
The internet has made it incredibly easy for buyers to do some preliminary research for a new home. It does have its limitations, however, which is where your expert real estate agent can fill in the gaps.
Online listings, if managed by a top agent, will always look amazing. Wide-angle lenses and professional photographers are employed, as well as photo-editing software, to make a home look as attractive as possible online. It’s worth keeping in mind that pictures may lie – be careful not to screen out potential homes just because the photos aren’t fabulous – rely instead on the wisdom of your agent. If she has listened to your feedback and is familiar with the inventory, she will be your best screen for which homes are better than they appear, and which may be worse.
Online listings also don’t give you much of a sense of location. While google earth may help with some of this, until you actually drive by a property, you may not be able to tell physical lot characteristics that may be a positive or a negative to you. Online listings also can do little to convey a sense of neighborhood or community. Again, that is where your real estate professional should be able to fill in the picture for you.
Finally, online listings are only as good as the agent who enters the data – there may be information about the property that is not entered into the MLS, either by agent oversight or by simple lack of space, that might make a home more desirable to you. Information such as camera security systems, water softener and purification systems, high-efficiency mechanicals and timered vacation/Christmas lighting may have real value to you and is rarely listed online.
Online shopping is a great way to familiarize yourself with the market, but a local real estate expert is your best course of action once your curiosity grows more serious.
We were approached by someone who is interested in buying our home. The buyer has provided us with an unsigned sales agreement as their offer. They are offering 1.5% of the purchase price as their hand money and have not included proof of funds (it is a cash offer). Are we wasting our time with these buyers?
The very short answer is yes! For starters, to be a valid offer, it must be in writing and signed. Without a signed writing, you have absolutely nothing to bind the buyer should you decide to proceed. What you received is not an offer at all and you should not give it serious consideration until the paperwork is signed by the buyer.
Hand money equal to 1.5% of the offer may or may not be sufficient depending on the individual circumstances. Sometimes that is all a buyer can afford. However, this buyer is supposedly paying cash so there should be no problem with them providing a more substantial deposit. Look for a minimum of 5% in this type of scenario. The hand money is your consolation prize should the buyer decide not to close after all contingencies have been satisfied – if you have moved out, you will need at least that much to compensate you for all of your moving costs.
As far as proof of funds, I would recommend that you not engage in any substantive negotiations until the buyer has proven that they do have the cash available to close. Talk is cheap, but if they really do have the cash, they will have no problem producing copies of statements showing the cash or a letter from their banker that they have the needed funds.
Your questions address just a few of the hundreds of complexities involved in getting a home sold and highlight why its really important to engage a full-time real estate expert when buying or selling a home.
Our home is on the market – is it ok to show it decorated for the holidays or should we take it off the market?
Buyers who are shopping during the holidays are some of the most serious buyers we see each year – most people don’t bother spending their precious holiday time looking at homes unless they have a need to buy. So keeping your home on the market over the holidays is generally a good idea!
Decorating for the holidays while your home is on the market is also not a bad idea – homes often look their best decorated for the holidays – as long as a few basic guidelines are followed. Briefly stated, when decorating this holiday season, keep your decorations more neutral and reasonably simple.
Start by taking a more minimalist approach. You may have bins and bins of holiday decorations like I do, but when your home is on the market, its best to leave some of those decorations packed away. Choose decorations that have less of a religious theme. Snowmen, evergreen wreaths, poinsettias and nutcrackers, for example, have broad appeal. Be careful that the decorations that you do choose compliment your décor. You may have changed the color scheme in your home since buying your holiday decorations and it’s important that they don’t clash! Don’t over-decorate the exterior of your home either. A few well placed, tasteful strands of lights or an attractive evergreen wreath can add sense of warmth to your home, but keep your inflatables packed up!
If you bring in a tree, make sure it doesn’t overwhelm the room. This year a tall, skinny tree might be the best choice so that the room doesn’t feel small. And of course, consider using decorations to highlight some of your home’s special architectural features, such as using candles to draw attention to an attractive fireplace.
When showings are scheduled, a brewing pot of mulled cider or a plate of freshly baked cookies is not only seasonably appropriate but will go along way toward creating an inviting feel for your buyers. And don’t forget – even if you normally keep your thermostat down, be sure to turn it up for showings so that buyers are comfortably warm!
We’re getting ready to put our home on the market this spring and have read all of your prior articles on staging – any new do-it-yourself ideas to maximize saleability?
Now is the perfect time to be readying for Spring – our Spring market starts in January so you have a couple of months to make final preparations. I cannot say often enough how important it is to stage your home – those that are stage sell quickly and for top dollar. For those of you who have completed the primer course in home staging and have de-wallpapered, de-cluttered… here are a few more great ideas!
Expose your windows. Pittsburgh can be gray enough. Take down window treatments (yes, even custom ones unless they are less than 5 years old) and always show your home with the blinds up. It’s important that your home feel light and bright to prospective buyers and not dark and cave-like.
Expose your wood floors. Buyers love hardwood floors. If you have old wall-to-wall carpeting over hardwood floors, remove it and expose the wood. If you have area rugs, unless they are the latest trend and are measurably adding to your design, roll them up and store them.
Do a “super quickie” on your kitchen and baths. Even replacing old lighting fixtures and cabinet hardware will go a long way to making a space feel more updated. The big box stores have a large selection of reasonably priced choices. The safest choice these days is silver tones, but burnished bronze is also well-liked.
Buy new white towels and other white accessories for your baths (and don’t use them so they stay fluffy). White brings a sense of cleanliness to a bathroom.
Finally, when you have a showing scheduled, leave all of your lights on in anticipation of the showing. Light, bright & squeaky clean is a great formula for getting your home sold!
With Halloween approaching, I am wondering what tips you might have about selling a vacant home – it seems they can be a little spooky?
It is certainly important, whether your home is inhabited or not, that you keep your home from looking like a haunted house, at Halloween and throughout the rest of the year! Most buyers are driven to buy by their emotions – a scary looking house from the curb is not going to create a warm feeling for your buyer prospects. Keep your lawn mowed and your shrubbery trimmed – winter is approaching so its definitely time to do your final mow and yard clean-up. Beware of faded or chipping exterior paint – if your home suffers from this problem now is definitely the time to book a painter for spring. Also make sure that your windows are clean and in good repair and your sidewalk and driveway are also in well-maintained condition. These are important tips for all homes, and will go a long way to create a warm feeling from the curb.
Vacant homes do need additional thought if they are going to present well to buyer prospects. They must always be clean – dead bugs should not be apparent – a quick clean twice a month should be adequate. All light bulbs should be working, bright and not the kind that are slow to warm up. Leaving a light on a timer in a couple of rooms is a good idea – if a buyer has a strong interest they will often drive by at night and you don’t want your home to look dark and scary. Keep your home at a reasonable temperature – walking into a 55 degree home is not the least bit appealing on a cold day – programmable thermostats can help you keep your bills down. Condition is absolutely key in a vacant home — if buyers aren’t distracted by your things, they are far more likely to notice everything wrong with your home. If you have moved out, be sure you have moved everything out – it can be disturbing to a buyer to see that you have moved out but have left closets or cabinets full of your things. Finally, ask your agent whether you should have your home professionally staged – its not cheap, but professional staging helps to make a house feel more like a home to your prospective buyers.
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It’s an age-old adage in real estate – your first buyer is always your best buyer. How true is this, and what does it mean for you, the home seller?
As much as we all love our homes and are absolutely certain they are worth more than a buyer is often willing to pay, it is almost always true that your first buyer is your best buyer, and well worth trying to make it work with. After sixteen+ years in real estate, I can share experiences all day of sellers who let buyers move on, only to ultimately take a lower offer. For example, I had a listing priced at $350,000. The first offer, received in only one week, was for $325,000. The seller wouldn’t budge. 60 days later, a remarkably short period of time, the second offer came in an topped out at $320,000. Again, the seller wouldn’t budge, now holding out for the earlier $325,000. Another 60 days passed – at this point both the first and second deals would have been closed and the seller happily freed from his mortgage obligations. This time, the buyer topped out at $317,000 and this time, the seller had the good sense to grab it, netting $8000 less and closing 120 days later than he would have had he gone with his first buyer.
This scenario is all too common, and yet, despite the sound advice from those of us who do this every day, history continues to repeat itself. If you have an offer out of the gate, it doesn’t mean that you priced your home too low. There is a certain energy that surrounds a new listing. Buyers panic a bit when a new home enters the market, certain that if they like it so does everyone else. This panic will drive them to pay more and keep their terms cleaner than a buyer who comes along later. If you are one of the lucky sellers who gets this early offer, do not second guess yourself or your agent – a better price is never found than one that happens as soon as a home comes on the market. Grab it and be happy that your home is sold!
Working with your buyer is also important during the home inspection. Inspectors are extremely thorough these days and buyers have high expectations about condition. If you are lucky, the buyer will let some issues go. But many buyers will require that you address 100% of inspection issues. If you have to put your home back on the market because you don’t want to make repairs, you will be required to disclose all issues and can be almost guaranteed of a lower offer next time around.
So yes, it is true. Your best offer is most likely from your first buyer – do what you need to do in order to make the deal work!
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. In fact, if you missed the news, US News and World Report recently ranked Quaker Valley High School as the #6 high school in the entire state! That’s an impressive ranking for our small town and equally small school district.
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 driving more and more families to explore the possibility of living here, and despite our new construction, the very limited nature of our housing inventory, when combined with the strong demand, is continuing to put strong upward pressure on our housing values.
What is reasonable to expect a real estate agent to do for you when selling your home, and what is not?
This is an outstanding question posed by a recently closed home seller. Clarifying listing agent responsibilities up front is an outstanding way to keep the consumer/agent relationship a happy and productive one. Homes don’t always sell quickly and the relationship can be lengthy!
It is reasonable to expect your agent to be well versed in the market you are in. She should be familiar with all comparable sales and competing listings and should have visited most of them personally. She should be able to describe their differences to you so that you can understand how your home realistically compares to others. She should also have an understanding of our market cycles and be able to explain when your home is most likely to sell, and how many days on average it takes to sell a home like yours.
It is reasonable to expect that your agent keep your home well advertised. You should expect professional quality photos and a full saturation of the internet, which drives most home sales these days. It should appear in print media as well and be occasionally open to the public, although sales from open houses are rare. It is reasonable to expect periodic market updates and feedback reports – monthly is the most common that I see among my colleagues.
If your home is vacant, it is reasonable to expect periodic property checks. Bi-weekly is appropriate, but I do provide weekly checks for my vacant listings. It is also reasonable to expect your agent to have enough community connections to be able to provide referrals for work that needs to be done.
It is important to remember that an agent’s job is to market your home, and ultimately, to negotiate a contract for the sale of the home. The home does remain your home, however. Therefore, it is important for you to be a continued partner in its sale. A real estate agent cannot maintain the property for you and cannot contract for you to have it done, but hopefully can refer you to service providers. Additionally, as much as we wish we did, a real estate agent does not have a magic wand to miraculously produce a buyer for you or a crystal ball to know when that buyer will come along, although sometimes we are able to sell homes so quickly that you might think we do. We must all work within the market that we are in and stay the course with consistent advertising, price reviews and condition adjustments as needed to get a home sold.
We’re getting our home ready for the spring market – we don’t want to do too much to get it ready because we’re sure the buyers will want to do projects to make it their own. What do you think?
Recently I was showing a lovely home that was, for the most part, picture perfect, in my professional opinion. And yet when my client walked into a room with a cream colored carpet on the floor, she couldn’t miss the glaring rust stain on the carpet. At that moment, the positive vibes she had been feeling instantly turned negative and the home was surprisingly crossed off her list.
This drove home the point once again of how critically important it is for sellers to make sure their homes really are picture perfect and if at all possible, to not leave obvious projects for the buyers. Buyers really are this critical these days and so unless you have a hot commodity that you are willing to sell at an obviously low price, it is well worth your time to make sure there is nothing that could turn a buyer off. If you were buying a used car and saw a big scratch on the side panel, would you stop and wonder what else is wrong with the car? Would you dig deeper than you otherwise might, searching for other deficiencies? Would you expect the dealer to give you a big discount because of the glaring issue? Would you be thinking that you would prefer to repair the scratch so that its done to your satisfaction? What if the dealer had taken the time to repair the scratch, so the car looked good as new? Would it have affected your perception of the car and its desirability to you, the used car buyer?
The same analysis applies to the sale of used homes and yet sometimes, sellers don’t seem to see it that way. Experience shows that your home will sell faster and for more money if it is properly conditioned for the market before it hits the market. This does not mean leaving projects for the next owner. Yes, they will want to make the home their own and yes, they may undo some of what you have just done. But they wont even consider making it their own home if they start off feeling like there is work that must be done.
So do yourself and your bank account a favor. Hire the agent who walks carefully through your home and makes a “to do” list for you of what you need to do to get your home sold, not the one who sweetly glosses over all those things you have seen on HGTV are “no nos” for home sales. Hire a home stager (they are quite reasonably priced). And then, take their advice and eliminate all of the objections possible before a buyer walks in the door. Don’t be the place that “needs a lot of work” — be the one that is “wow, they have really done a lot of work.”
Dear Kathe, What impact will the new lending laws have on us as future home buyers?
This is a huge topic that I have attended day long seminars on! On October 1st, new laws will take effect that will impact the way that we all buy and sell homes. Its complex and will take some getting used to, but its important to keep in mind that all buyers and sellers should plan to close their transactions in no less than 60 days, unless the buyer is a cash buyer. Stacked closings, where the sellers close on their home and immediately close on their new home, will, at least until we adjust to the new rules, become much trickier.
To start, much of the terminology has changed. Lenders are now called Creditors. Borrowers are called Consumers. The Good Faith Estimate is no more – it has been replaced by the Loan Estimate – this is what your Creditor gives you to set forth the loan terms. The HUD-1 is also gone. It has been replaced by the Closing Disclosure. And the closing/settlement is now called the Consummation!
The most cumbersome change is that the Consumer must receive their Closing Disclosure 3 days prior to closing. It is generally considered that this requires sending the Closing Disclosure 7 days in advance of closing. To meet these deadlines, Consumers will need to be very prompt in making their loan application and all of getting their documents to the Creditor. If documents are delayed, underwriting will be delayed and the above notice requirements may not be met. If these requirements are not met, your closing will be delayed.
It is recommended that walk-throughs go to a two-step process. A preliminary walk through is recommended 7 days in advance of closing to make sure the seller has complied with all terms of the Agreement of Sale. Sellers – this means that you will need to make your inspection repairs well in advance of closing. Buyers, your agents will need to remind Sellers through their agents to be sure they leave all appliances, clear all personal effects and debris from the home… A second walkthrough is recommended for immediately before closing, but if there are any issues that affect value (such as an appliance that was removed from the home), this will cause a lengthy delay in the closing. Therefore it is critical that all parties know and understand their obligations under the contract.
The new laws are complex – be sure to choose a real estate professional who is well educated on these changes to make your real estate transaction is as smooth as possible. Check back next week for more information on how these new laws are affecting all of us.
August is typically a quiet time in our real estate market, and this August is proving to be no exception. Buyers are distracted with last minute vacations or getting their kids back to school! However, a quiet market is not a dead market. For new introductions, there is still a reasonable number of buyers looking for homes. Just last week I listed a home and sold it in 3 days! The buyers had been looking for months and this home checked all their boxes!
If you’re ready, market entry is typically best right after Labor Day, once we really have closed the book on summer. I would not wait for the spring market to roll around. There are more buyers in the spring market, but there are more homes on the market to compete with. Our inventory is at a record low in most price ranges. Homes that are market ready will continue to sell well through the fall.
Market ready is the key, as it always is. I cannot overstate the importance of doing your homework upfront. If you’re new to my column, check out my blog on my website for back columns about readying your home for sale. Briefly, low cost must do’s include decluttering (and storing off-site if possible), repairing all damage/wear and tear, and giving the house a top-to-bottom (including basement and garage) scrub down. The next level of preparedness includes removing wallpaper, repainting in a current color palate and replacing worn or colored carpets with new neutral carpeting. If you’re not ready, you will either need to discount the price or take the time to prepare your home. If you’re not ready now, plan for a spring market entry in February and get to work! If you are ready now, give me a call and let’s get going – its been an exceptionally strong year! Interest rates remain low –it’s a great time to make your move!
My friend’s closing on her existing home was delayed and she ended up having to delay her closing on her new home, and was stuck with all of her stuff on a moving van and unable to move in to her new home. How can these major inconveniences be avoided?
Back-to-back closings do raise the possibility of delayed closings and moving vans sitting curbside waiting to unload. When there are multiple transactions lined up on top of each other, if one in the line-up fails to close on time, it will affect everything in line behind it. Ideally, transactions would not be back-to-back, but this only works if buyers are paying cash out of existing accounts or have sufficient resources to carry two homes, so that the new home can be closed independently of the closing on the old home. But even if transactions are not stacked, closing delays can still occur, causing unhappy buyers and sellers, because lenders aren’t ready.
So how can these inconveniences be avoided? Selection of your lender and closing agent are absolutely critical. There are a lot of people out there who would like your mortgage and closing business. Many may even be your friends, neighbors or family members. But the relevant question, in addition to rates and fees, is whether they close on time every time. This is where you really need to rely on your agent’s expertise. Even consumers who move frequently only engage in the mortgage process once every few years. A busy agent is dealing with lenders daily. We know who stands behind their word and will not let you down, and who will not. A well-intentioned but poor performing lender can cost you significant unhappy delays – make a careful choice up front.
It is also crucial that you get your lender all of the documentation that he needs immediately at the time of mortgage application. You don’t want to be part of any delay. Finally, even once you have turned in all of your paperwork, its important to check in with your lender weekly, daily the week before closing, until they tell you that they have the “clear to close.” The old saying “the squeaky wheel gets the grease” is never truer than when it comes to closing your mortgage loan – stay in close touch with your lender!
The rules surrounding lending and closing mortgages is about to change again, in October. In an effort to protect consumers, the process will be getting even more cumbersome and delays should be anticipated. Your careful choice of your service providers will become even more critical!
My home has been on the market for quite a long time and has not sold. Should I take it off the market and give it a rest so that it doesn’t seem so stale?
The best course of action to take when a home has been on the market for a long time and hasn’t sold depends on why it hasn’t sold to begin with. For example, if you have a very unique home, it may take a long time to find the buyer looking for your unique features. If you take your home off the market, you may miss out on that one buyer seeking a home like yours.
If your home is located in a challenging location, such as next to a perceived detriment, then taking your home off the market may cause you to miss out on the one buyer who doesn’t perceive the neighboring feature as a detriment. If, however, the buying public perceives your price to be too high, then removing it from the market for a rest is highly unlikely to change that perception, unless your “rest” spans several market cycles! The risk with waiting for the market to “catch up” with what you “need” out of your home is that you don’t have a crystal ball –prices could go up or down and you could end up waiting a long time for the same price you could get today.
And of course, if your home has not sold because of condition, the passage of time isn’t going to change that and may even make it worse. Consider how large a renovation you are willing to take on in order to get your price. Stripping wallpaper and repainting, for example, might be a good start, but if you have dated kitchens and baths, it’s not going to do much to change the buyer perception of a “dated” home.
In the end, there is rarely a scenario when taking a home off the market for a “rest” ultimately yields a better result for a seller than staying the course. In fact, we have many examples of recent sellers who tried to do just that and have ended up with lower offers than they had just a couple of years ago. So my best advice to you is to reevaluate your home for possible problems that are easy to fix like too much stuff, reevaluate price to make sure it is realistic and in line with recent sales (consider an appraisal to be sure), stay the course and then work with the offer that you do get.
What about this year’s spring market has surprised you?
I have been surprised by an interesting trend in real estate this year – I have actually had buyers choose homes based on how clean they are! And we aren’t talking about whether the home is broom swept clean. In these homes you could literally eat off the floors! There is no doubt that Mr. & Mrs. Clean live in these homes. Buyers have actually looked past their “must haves” and have chosen homes because they are so incredibly clean!
So what is incredibly clean to today’s discerning buyers? Decluttering is step one. Renting a storage facility or getting a pod is a great first step. After that, every inch of a home needs a good scrub down. Every light needs to be cleaned, every baseboard scrubbed, air returns and bath vent fans cleaned, carpets professionally cleaned (or replaced if they don’t look new again after cleaning), every smudge on the walls and cabinets removed (which may require repainting – and please make sure any touch-ups are NOT noticeable). Check every light switch – make sure they are crisp – if they are dingy looking, have them replaced. Air filters on furnaces should be changed. Worn floors need to be touched up or refinished. Grout must be completely clean – if you cant get it to look like new, hire a professional steaming company to steam your grout and then reseal it with grout sealant. Refrigerators and ovens should be spotless. Closets should be tidy and well staged. Light bulbs should all be working. Crystal chandeliers should be polished.
And of course outside, all landscaping should be well trimmed. Walks and driveways should be edged. Porches and patios should be swept and in great shape. Windows and futters should be clean. Garages should be swept out and well organized.
Sound like a lot of work? It is – super deep cleaning is no fun. But this spring we have certainly seen sellers who have taken their cleanliness to the next level rewarded for their efforts!
We are in the process of buying a new home, and had agreed with the seller for a credit of $5000 for repairs related to inspection issues. Now our lender is asking what the credit is for and sending an appraiser back out. What is going on – this didn’t happen the last time we bought a home?
As the years pass post-2008, it seems that lenders are getting more and more restrictive with their lending rules. At first, they just didn’t want to know about repairs, so buyers and sellers started moving repairs to side addendums and providing un-named credits for items the seller didn’t want to fix. Lenders seem to have caught on. They now want to know why money is being credited back post-agreement – it’s a fair question.
From a lenders perspective, they are financing a home that has an appraised value. For example, if you are buying a $500,000 and it appraises for $500,000, the lender agrees to loan you money with the assumption that if you default, that is what the house is worth. If there is something wrong with the house (a failed roof, for example), and you get a credit for it, then the house (with its failed roof) really isn’t worth $500,000 after all, and there are no guarantees that you will take the credit and put on a new roof. If a credit is being offered to a buyer to cover inspection issues, the lenders now want to know why so that they can assess whether the items affect value, and they want to send an appraiser back out to make sure that the home is worth what he said it was worth now that the deficiencies have been revealed.
This is not only going to slow transactions down and possibly delay closings, but it raises the possibility of appraisal failures. For example, if the roof really is bad, the house may no longer appraise. It is probable that our ability to offer credits for inspection issues is coming to an end.
All of this might sound complicated, but there is one very easy take-away. Inspection issues will need to be fixed prior to closing by the seller. Sellers, its important to keep this in mind — if there are inspection deficiencies, you are probably going to have to actually fix them. Don’t want to be blindsided by a long list of issues four weeks before closing? For many reasons, the best course of action is to pre-inspect your home and make repairs upfront.
We are remodeling our kitchen – what type of flooring should we install?
The most important thing to consider when choosing a new floor for your kitchen is what is going on on the rest of your main level of your home. It is a critical and yet often overlooked rule-of-thumb that the most easily sold homes do not have more than two types of floor coverings per level. The trend decades ago was to customize flooring to the room. The living room might have been green carpet to coordinate with the living room furniture, the dining room might have been blue carpet to work with the custom drapes. Today that is no longer in vogue and for a home to feel updated, and not subject to the “dated home discount” it’s important to unify the floor coverings within the home. Floors are no longer considered an important opportunity for you to express your sense of style – that is better done with area rugs and other items that are easily removed from the home. So when you are choosing a new floor for your kitchen, first consider whether you have the opportunity to unify (or move toward unifying) the flooring in your home.
Hardwood floors are by far the best choice you can make for your kitchen floors. There are two basic types – finished in place and factory finished. Factory finished floors are the easiest – they come out of the box pre-finished and just need to be installed. However, finished-in-place hardwood floors have far greater durability and a much more classic look. You do have to endure the sanding & staining process inside your home, but the costs are roughly equal and in the end you have a far more saleable floor. Avoid trendy choices in wood – while hand scraped or hickory may be trendy today, it will quickly feel dated. Stick with traditional oak floors (of any board width), as styles change the most you will have to do is update the stain color – a far easier task than completely replacing the floors.
Many people choose tile for their kitchen floors. This is not a choice I would recommend however. Tile is the quickest floor covering to feel dated and the hardest to change once it is dated. Its also cold on your feet, anything you drop is likely to break and it can be a challenge to keep grout clean and crisp looking. Other trendy choices include cork and laminate. Laminate in particular is not a good choice for a higher end home.
In the end, finished in place oak remains the best choice for your kitchen (and for the rest of your home!)
If its such a hot market this spring, why are so many homes still on the market?
In some parts of our country, a hot market is defined by homes that hit the market and sell almost instantly with multiple offers in excess of the asking price. That is not how a hot market is characterized here in Sewickley. Here, when we have a few homes that sell in the first week of their listing, and when those sellers realize in excess of 95% of their asking price, we consider the market to be “hot.” In a Sewickley “hot” market, not every home will sell quickly or for a high realization.
Even in our best market, Pittsburgh is a very value-driven city. In other words, buyers here are concerned about whether a seller establishes value and whether the data suggests that the value will be there should they resell the property in the next 2-3 years. Value can be conveyed in many ways. Establishing your basis in the property by providing detailed information about your improvements will help a buyer understand the value you are offering. Correct pricing will also help establish value – its very important to price your home by applying the proper dollar per square foot range to your documentable square footage.
For example, if your home needs some updating, applying a square foot value that has been established for a totally redone home is not going to convey value to a buyer. There are many other factors that will influence a buyer’s perception of value, such as quality of work completed at the property (a handyman special is not only obvious, but likely devalues your home) and the quality of the amenities (higher end appliances will create a higher feeling of value, for example).
In the end, even in a hot market, Pittsburgh buyers keep a level head about themselves and are going to be looking for value before they prepare an offer on a home. If a home has been on the market for the entire spring and has not sold, or if it has received offers that were below what the seller feels the home is worth, there is a high likelihood that buyer perception of value does not align with the asking price and some kind of an adjustment will be required.
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.
It seems like its been a busy spring market – why hasn’t my home sold? Any advice?
At Howard Hanna, we have just finished the busiest May that we have seen in the history of our company! If your home has been on the market for the entire spring cycle (at least since April 1st) and has not sold, then its time to review the listing and develop a new plan going forward.
The first factor in selling a home is location, and it’s the one you can’t do anything about. Currently, Village homes are in higher demand than those outside the Village, and certain locations in the Village are perceived to be more desirable than others. But you can adjust condition and price to account for location.
Condition and price go hand in hand and, if your home hasn’t sold, one or both probably need to be adjusted. You can read many past articles on my website about how to condition your home so that it actually sells – remove all wallpaper, paint in a current color palate, neutralize/freshen carpet, update lighting and plumbing fixtures, remove signs of wear and tear, declutter (pack in advance what you plan to move with you and donate the rest) and stage your home for success. It’s a simple formula and yet it always surprises me how often I show homes where this basic formula for success has not been followed. Yes, it often requires a home seller to invest even more money into their home to recoup their original investment. But you have likely used and enjoyed your house for several years and it’s a rare day that a buyer wants to be a product that feels well used, at least not without an appropriate “used” discount. If you can’t be objective, and who can be about their own home, calling in a home stager is the fastest way to unbiased advice on what it takes to get your home sold. A home stager doesn’t just move your furniture around — she can give advice on paint and carpet colors, what needs to be packed up and what wear and tear needs to be repaired.
Price is the easiest thing to adjust, and if you aren’t in a position to adjust condition, adjusting price may be your only option. There is a price at which every house will sell, even one that is not well conditioned for the market. Finding the right price can be a challenge. It’s hard to know how much to discount for a challenging location, a challenging feature (or lack thereof, such as no garage) or updates that buyers perceive are required. Touring competing listings at open houses will help you to understand your competition, but the most valuable data comes from understand the homes that have actually sold and why. Having an independent appraisal done is another excellent way to get an objective opinion on value.
If your home hasn’t had an offer this spring, then its well worth your time to take a serious look at condition and pricing and make any suggested improvements before the slow days of summer set i!
How important is it that we get preapproved before we begin our home buying process? Couldn’t we wait until we find a home and then meet with a lender?
Preapproval is an important first step in the home buying process, for many reasons.
First, before you consider any homes, its very important to know not just what you can afford, but what that will cost you each month, and whether you are comfortable with that payment. There are many people who qualify for far more than they want to afford, and there is no sense getting your heart set on something, only to realize that the monthly payment feels much too steep to you. Additionally, you may qualify for more (or less) than you had assumed – it is a far more efficient use of your time to shop in the range you know you can afford and are most comfortable being in.
Second, sometimes the preapproval process will reveal credit issues that will prevent you from getting a mortgage, yet. No credit issues that you know of? Best to double check. With reporting errors and identity theft, you would be surprised how many people have glitches on their credit that they didn’t know about. Its best to be sure upfront – when you start the pre-approval process, the lender will check your credit and this will give you some time if there is any “clean-up” work that needs to be done.
Finally, when you make an offer on a home, the seller will expect your agent to provide a pre-approval letter. In the spring market, there are many buyers out there and another buyer could end up getting an offer in and accepted before you even have your pre-approval letter back.
Prepare yourself for success in this spring market – after you hire your buyer’s agent, get your pre-approval and you will be ready to buy your new home.
As we prepare to close on our home, can you give us a road map of how we need to present the home to the buyer for closing?
Its important that when you vacate the home, you leave it as the buyer saw it, minus your personality, of course. A quick checklist would include:
Leave nothing behind that isn’t attached, unless it is specifically included in the agreement of sale. This includes paint, old building supplies, gardening supplies and garage/basement appliances. If you don’t have written permission to leave it, it needs to be removed prior to the buyers’ walk through.
Leave everything that is attached. If you forgot to exclude in the agreement of sale something that is attached, it stays. This would include the obvious, such as the toilets and lighting fixtures, and the less obvious, such as mirrors anchored to walls (those on hooks can go unless specifically included) and other decorative objects that are actually screwed or bolted to the wall. Draperies can go (unless specifically included), but their rods stay. If you are unsure, check with your real estate agent.
Your home must be free of debris and “broom swept clean” which means that while it doesn’t need to be disinfected from top to bottom, it cant have any dirt or debris that could be removed with a broom. To be courteous, you should also leave the lawn freshly mown and the yard reasonably tidy (and free of 1’ weeds!)
Your property must remain in the condition it was in at the time the buyer saw the home. If something breaks between the time of the inspection and the time you close, it is your responsibility to repair it.
Finally, be mindful that the disclosure does ask you if there are any conditions that would materially affect value, and also asks you whether there are any defects in floor coverings. If, when you are removing area rugs, you find that the floors below are badly worn (or perhaps you have plywood infill under an area rug) and you failed to disclose this, the buyer may view this as a failure to disclose and expect a last minute check from you to pay for the repair. If you had a large piece of furniture in a room and did not paint behind it, and when you remove it the room is suddenly two different colors, you should repaint the room or be prepared for a buyer request for a check for the cost to repaint as this might also be viewed by the buyer as a failure to disclose a material condition.
Before you leave take a quick look at your home and ask yourself if the home presents in a condition that, were you buying, you would be happy to be closing on. If the answer is yes without reservation, you are probably ready to close!
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 home 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.
I heard my neighbor’s home is sold and the sign never went up. Is the market really that hot? How does this happen?
The short answer is yes, the market really is that hot! We absolutely are selling some homes before the sign installer can get to the house! In fact, just this weekend, that happened to one of my listings! I would like to congratulate my clients (and column readers) Krista & Ryan on their one day sale of their home on Thorn Street! They didn’t just call 1-800-Ask-Kathe, but they actually took my advice, which was probably a little shocking out of the gate. They installed two completely new bathrooms and removed all of the old carpet from their home before entering our spring market. And they were handsomely rewarded for their hard work with a lucrative sale to the first buyer prospect who viewed their home!
I have to admit, I have been falsely accused on rare occasion of “strong arming” my sellers into investing money that may not need to be invested to get a home sold. Like many of you, I pay careful attention to our market and what I see is that those who don’t do the hard work up front are those who languish on our market. Prepping for market is not a guarantee of a one day sale – there still has to be a buyer out there looking for a home like yours. But not prepping is almost a guarantee of no sale, unless you price at a deep discount (or happen to own that rare home with a main level master on a prime street that I am always in a desperate search of).
So what did Ryan and Krista do so right? They started by calling me to get a road map! They decluttered. They staged. They installed two completely new bathrooms just weeks before coming on the market. They removed everything dated and presented a home that was clean, crisp and in a current design palette. There were no signs of wear and tear. There were no unfinished projects for the next owner to complete. And then they priced their home exactly in the range of reasonable.
Those of you who read my column each week could probably write it by now! What is the recipe for achieving a fast, lucrative sale in this market? Declutter. Stage. Update. Eliminate signs of wear and tear. Eliminate wall paper, worn or colored carpet. Choose a current design scheme if at all possible. Its hard work, but Ryan & Krista are the proof, yet again, that it works!
Now that fall is here, do you have any tips for presenting our home well in the fall market?
We are looking to buy a new home – where is the market these days? Do you have any advice for buyers?
Our high-end market has been slower than normal for over a year now. Speculation abounds as to why that is the case, but it doesn’t seem that we are alone – sales of higher end homes in many pockets of this country have slowed. Many attribute that to the fact that our tax system was restructured to allow for a larger standard deduction and lower marginal rates but at the cost of limiting the deduction for property and income taxes to a combined total of $10,000. For high property tax jurisdictions such as our own, many commentators believe this has caused a slow-down in high-tax (i.e., high priced) home sales. I have held out hope that when people filed their taxes this past Monday, maybe they would discover that they are better off under the new system despite the deduction limitation and we would see the property tax fear fade into the background. I must admit that even as a former tax lawyer I have found the new forms a bit confusing, so I am really hoping we will see some favorable spin coming from tax preparers this week.
Last week’s incredibly low temperatures left many homeowners in the region with unexpected frozen pipes. It seems in Pittsburgh we may not build with as much attention to cold air defense as they do in historically colder regions of our country, and these unusually low temperatures catch us off guard. As we rebound a bit from the extreme cold, however, it is a great time to think about how your home responds to super cold temperatures. If enough cold leaks in to freeze pipes when we are at single digit temperatures, chances are you are spending a lot of money heating and cooling the great outdoors year round! A quick energy audit might save you hundreds of dollars in energy bills.
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.
This time of year we all take the time to give thanks for all of the wonderful things in our lives. I have much to be thankful for. The obvious chart toppers are good health, wonderful family and friends, and a warm home to come home to each day (which I particularly appreciate on these chilly November days!) My gratitude extends much further, however, to all of the people I work with every day that make real estate transactions so seamless for my clients – from the best mortgage brokers and closers to incredible home inspectors and handymen, contractors, electricians, roofers… that I can count on to give their best to my clients. With them by my side (or on speed dial) I have been able to provide the highest level of service to those with whom I work, and for that I am grateful.
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!
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.
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. Here are some options for those of you who want to downsize to consider: