by Kathe Barge | Dec 1, 2022 | Blog, Buyers, Buying Conditions, Contracts, Helpful Tips, Interest Rates, Market Trends, Mortgage, Property Value, Real Estate
We would like to buy a new home soon but interest rates seem very high – we see advertisements for internet lenders offering what seem to be below market rates. Is this too good to be true?
If you were simply refinancing an existing mortgage debt, you MAY be ok choosing an internet lender. You would just need to be very careful that, before you apply to refinance your loan, you receive from the lender a full disclosure of all the costs and not just the rates. Often times I see lenders have exorbitantly high fees connected with low rates. In a sense, you would be buying down your rate by paying high fees upfront. You would want to be sure to compare them on the same day to a couple of local lenders and understand what you are paying to get the quoted rates. The reason you must compare rates on a singular date is because rates go up and down continuously and a rate may seem lower simply because you called a particular lender on a date rates dropped.
Since you are buying a new home rather than refinancing, I do NOT recommend that you use an internet lender. They do not tend to be familiar with area norms and that can cause you more headaches than you can imagine. There is a long list of particularities to PA Agreements of Sale and the last thing you want to do is have your closing delayed (while your movers are standing at the curb) while you wait for your lender (who does not have a local presence that you can visit personally to address any issues) to sort things out. As they are not familiar with our Agreements and processes, internet lenders may also impose requirements on you that are not requirements generally imposed by local lenders that may disadvantage you later. Finally, internet lenders often do not understand that PA Agreements of Sale declare “time is of the essence” inside the contract – what that means to you is that if you miss your closing date because the lender isn’t ready to close, the seller does have the legal right to declare you in default, keep your hand money and sell the home to someone else.
When buying, why take a risk? Rely on your trusted Realtor to help you find a local lender who offers the most competitively priced loan products and delivers exceptional customer service. Realtors cannot accept referral fees from lenders, so you can be sure we are motivated only by knowing you will have an outstanding transaction. Feel free to reach out to me for help finding you the best local lender to meet your financing needs!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Nov 4, 2022 | Buyers, Buying Conditions, Contracts, Helpful Tips, Interest Rates, Investment Properties, Listings, Market Trends, Mortgage, Property Value, Real Estate
Interest rates jumped up again. Is it time for us to just wait until spring and hope they start to come back down?
If you are a buyer, the real estate market offers you a great opportunity right now! Don’t be fooled by the higher interest rates – this is an awesome market for you to buy in! Why? Because all of the people who you would have been competing with are afraid of the interest rates and sitting by the sidelines. This allows you to have a competition – free opportunity to buy a home! Just six months ago, buyers would have been overjoyed to have an opportunity to buy a home without competition, to have had an opportunity to have had an offer accepted on the first home they offered on instead of their seventh, to have been able to purchase a home at asking price rather than asking price plus 10 percent! Do not miss this golden opportunity – there are some very nice homes available right now. You can refinance later with a convenient no cost refinance loan – get the house now! Once rates start to come back down, the buyers (who have all been sitting by the sidelines with you) will come racing back into the market, and bidding wars will be back. Make the smart move – buy now.
And as a side note, I do not feel we will see a “crash” in prices. Inventory remains at record lows and those homes that are selling continue to increase in their sales prices to new record highs, despite the increasing rates. This is not 2008 – I am not anticipating any “deals” to be had this spring – if anything the natural increase in the buyer pool we see every spring will boost prices because of the extreme lack of inventory. Feel free to reach out to me and we can strategize on how you can take the most advantage of the current real estate market while you still can!
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Aug 15, 2022 | Buyers, Buying Conditions, Helpful Tips, Listings, Market Trends, Marketing, Property Updates, Property Value, Real Estate
We’re hoping to move in 2023 and are beginning our search online – is there anything we should keep in mind?
The majority of buyers will shop online during their search for a new home, and many will actually begin their search there, like yourselves! The internet has made it incredibly easy for buyers to do preliminary research for a new home. It does have its limitations, however, which is where your expert real estate advisor can fill in the gaps.
Online listings, if managed well by the listing agent, will always look amazing. Wide-angle lenses and professional photographers are employed, as well as photo-editing software and virtual staging, to make a home look as attractive as possible online. It’s worth keeping in mind that pictures may lie – be careful not to screen out potential homes just because the photos aren’t fabulous – rely instead on the wisdom of your agent. If she has listened to your feedback and is familiar with the inventory, she will be your best screen for which homes are better than they appear, and which may be worse.
Online listings also don’t give you much of a sense of location. While google earth may help with some of this, until you actually drive by a property, you may not be able to tell physical lot characteristics that may be a positive or a negative to you. Online listings also can do little to convey a sense of neighborhood or community. Again, that is where your real estate advisor should be able to fill in the picture for you.
Finally, online listings are only as good as the agent who enters the data – there may be information about the property that is not entered into the MLS, either by agent oversight or by simple lack of space, that might make a home more desirable to you. Information such as camera security systems, water softener and purification systems and high-efficiency mechanicals may have real value to you and is rarely listed online. Thus, while online is a great place to start, it’s a great idea to choose your real estate advisor early (and you can also research qualifications on his/her individual website)!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jul 19, 2022 | Buyers, Buying Conditions, Helpful Tips, Home Staging, Listings, Market Trends, Marketing, Property Value, Real Estate, Sellers, Selling Conditions
We plan to move out of our home before we put it on the market. Any thoughts on selling an empty home?
Some homes definitely sell more readily vacant – my last home was one of them – and so I definitely do not dissuade sellers from emptying their homes before selling them, but there are some important tips to keep in mind!
If you are emptying your home, then empty it. Do not leave behind the items you don’t want. Do not leave behind soaps, shampoos, chemicals, lawn fertilizers… Empty is empty. So please plan on a complete clean out. If you need help finding people to help dispose of items, give me a call!
It is critical to be sure that once your home is empty, you bring in a handyman to make sure that everything is in good order. Holes should be patched and touch-up painted, scuffs eliminated, carpets and windows cleaned, all lightbulbs working … When there is no furniture to look at, the condition of the home is all the more important.
Make sure you have a plan for upkeep of your empty home. The yard must be regularly maintained, including weeding, leaf and snow removal. The interior tends to be easier to keep up, but do be sure you arrange for a periodic quick clean. It is also a good idea to hire a neighbor or friend to check your home regularly to make sure that there has been no crisis at your home (such as a broken water pipe).
Be sure to keep your home properly conditioned (warm enough in the winter and cool enough in the summer). I have actually seen mold grow inside a home when sellers do not keep the air conditioning running in warm weather in their vacant homes – this will cost far more to clean up than the air conditioning bill! Finally, consider putting lights on timers so when buyers drive by in the evening, your home does not appear dark and unloved!
Selling a vacant home is not a bad thing, but it is important that you follow these tips to be sure your home is presenting well to prospective buyers!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jun 9, 2022 | Blog, Buyers, Buying Conditions, Contracts, Helpful Tips, Inspections, Listings, Property Updates, Property Value, Real Estate
We find the inspection process confusing – do we have to fix everything in the inspection report before we sell our home or just the repairs the buyer requested?
The home inspection report is the document from which your buyer works to make their repair requests of you. Some buyers will ask for everything and others will ask for only those items that they think are important. They may let some things go, for example, if they are planning on renovating an area and anticipate fixing those items as a part of the renovation.
Once you and your buyer agree on a list of repairs, these are memorialized on an addendum. It is that addendum, called a Change in Terms Addendum (“CTA”), from which you work when completing your repairs. You need not refer to the inspection again unless the CTA references it. You do, however, need to make sure that you do everything on the CTA exactly as specified, so be sure to read it carefully and provide a copy to your contractor(s). For example, if the CTA says that you will have GFCI outlets installed by a licensed electrician then you need to make sure you hire a licensed electrician, and not your favorite handyman, to make the repair! If the CTA says you must paint to match existing then you need to take a sample of the existing paint to the paint store and color match it – don’t rely on old paint in cans – paint fades with age and it won’t match. Be very careful to be sure you are complying with the terms of the CTA – if you do not, or if your contractor does not, your closing may be delayed or postponed until the work is done as specified. Along those lines, be sure to review your contactor’s work when complete and make sure that he actually did what you agreed to do on the CTA. If not, request that he return before it becomes a walk-through issue.
And of course, be sure to get paid receipts from all contractors, or if they have not been paid, notify the closing company so that they can be paid at closing. All repairs must be paid for before ownership changes hands so be sure to stay on top of your bills, and provide receipts to the buyers agent.
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 11, 2022 | Buyers, Buying Conditions, Contracts, Helpful Tips, Interest Rates, Listings, Market Trends, Pittsburgh, Property Value, Real Estate, Sellers, Selling Conditions
How do you guard against overpaying in this competitive market?
You have a good reason to worry about prices in the market that we are in. Currently it seems that prices have risen at least 10% in some price brackets since the new year. That’s an incredible amount for the Pittsburgh market which typically appreciates at the rate of 1 to 2% per year. That increase is not being seen a crossed all price brackets – the million dollar plus market has as a general rule seen less. However, the majority of our homes are still seeing multiple offers and the prices are still coming in over the asking price.
Given the current state of the market, there is a high likelihood that those participating in some of the more intense bidding wars going on right now are going to end up overpaying for their homes. If they remain in their homes for 5 to 7 years, however, that should not be an issue. We should see enough market appreciation in a 5 to 7 year period to make up for any premium that might be paid in the current market.
If you are getting a mortgage, the appraisal required by the mortgage company provide some level of protection. However, most appraisers are trying to make their appraisals come in where the market is presently, so that doesn’t exactly protect you from the “bubble” we may be experiencing. Additionally, if you are involved in a multiple offer situation, to be the winning bidder you will probably have to offer some level of “appraisal gap coverage” meaning that you agree to accept the appraisal at a lower number than the purchase price, should that occur. So, you will not benefit from the typical protections afforded by an appraisal.
In the end, the answer to your question is that if you are buying in this market, you are just going to have to come to peace with the fact that you may need to do what appears to be overpaying in order to get a home for you and your family. However, in the end, even if the market does settle down a bit, as long as you are not planning to move in the near future, the market will eventually catch up with any premium you might have to pay.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 3, 2022 | Buyers, Buying Conditions, Helpful Tips, Interest Rates, Investment Properties, Market Trends, Mortgage, Property Value, Real Estate
How are rising interest rates impacting home sales?
Rising interest rates are definitely impacting buyers. Many buyers are having to step down their affordability levels and focus on homes that are less expensive homes than those they might have considered three months ago. If you are a buyer and have been looking for more than a month, it’s a good idea to check in with your lender and request a new pre-approval and cost estimate so that you can be comfortable with what your payments will look like at the higher rates.
For most sellers, however, the rising interest rates are not impacting home prices. We continue to sell homes astonishingly quickly and at record prices. The pool of buyers considering a home may be different, but their number is not less. At the present time, it does not appear that the notable increase in interest rates has impacted our market in the “affordable” ranges at all.
However, the high-end market (over $1.5M) has always been much more susceptible to broader market factors such as interest rate increases. There has been a notable (and hopefully temporary) decrease in high-end activity in recent months and rising interest rates may be playing a key role in that decline (along with the volatile stock market and other concerning world events). If your home falls into our high-end market, you may need to exercise patience with our market as your time on the market will likely be more in line with historic norms as compared to the current “flash sale” market we are experiencing in the $1.3M market and below.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Mar 30, 2022 | Buyers, Buying Conditions, Contracts, Helpful Tips, Inspections, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers
The market is so hot right now and we aren’t having any luck getting a home – should we waive home inspections?
You are correct –the market under $1million is very fast paced right now, and in many instances, the winning bidder has waived home inspections. That does seem to be what it may take to “win” right now but I cannot recommend that you make that choice. Now several months into the “waive inspections” craze we are starting to hear stories about the expected fallout from this hasty decision.
From the seller’s perspective, I highly recommend that you have your home pre-inspected and repair or disclose the relevant items. While an inspection might cost you upwards of $500, it is money well spent toward a smooth closing. If you have pre-inspected your home and provide the report to prospective buyers, you are doing your part to make sure your buyer is well-informed. In the absence of a pre-inspection, I do not recommend that you accept an offer from a buyer who has not inspected your home. I have started hearing from home inspectors that disgruntled buyers are seeking post closing inspections to find problematic items and sue the sellers for failure to disclose. You don’t want that to be you. If you have not pre-inspected, we can discuss strategies to allow a buyer’s inspection and still protect you.
From a buyer’s perspective, as we all imagined would happen, the post-closing stories are starting to mount about buyers who purchased without an inspection and are now having all sorts of forseeable issues – roofs leaking, furnaces failing… If you are going to make this risky choice, you need to do so knowing that you will be assuming the risk of potentially tens of thousands of dollars of issues The contract specifically states that your inspection is your opportunity to find issues – if you waive that, you will be fighting an uphill battle to recover against anyone. Before you make an offer without an inspection contingency, you really do need to ask yourself if you are prepared to absorb those costs!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 19, 2022 | Buyers, Helpful Tips, Listings, Market Trends, Real Estate, Security, Sellers, Selling Conditions
We have security cameras in our home – is it ok to leave them on when we show our home?
Video recording is permitted, except in areas where people have a reasonable expectation of privacy, such as a bathroom. In those areas, you may not record. Audio recording is much trickier, and most security cameras these days record video and audio. In the state of Pennsylvania, audio recording requires the consent of all parties being recorded. Therefore, the best practice, to protect yourself from any legal consequences, is to disable audio recordings of your showings. This does not mean that you cannot listen in – you can! It means you cannot make an audio recording of the showing.
Some sellers are just curious and want to know what people are saying about their homes. Some won’t be able to figure out how to disable the audio recording component of their system. In those cases, it is important that you prominently disclose that the property has video and audio surveillance. This needs to be done in a conspicuous way – you should post a notice at your entry door as well as someplace immediately visible on entry – I create a fun little sign with a smiley face that says “smile – you’re being recorded. Property is protected by audio/video surveillance.” When people enter your property having viewed the signage, it is deemed implied consent to the recording. It is also important that you make sure that your Realtor clearly indicate that there is audio and video surveillance in the MLS Realtor comments as well as in the lockbox instructions, if applicable. Do not forget to fully disclose your cameras to your agent (this should be done the first time your Realtor comes over, as recording anyone without their consent is illegal – not just the prospective buyers!) Over-disclosure is a good thing when it comes to recordings!
If you are a buyer, you should of course assume that every property you view is protected by audio and video recording and be sure to keep your comments to yourself until you are back in your car (many homes have extensive exterior surveillance as well as interior surveillance, so talking near the home is generally not a good idea!) Keep interior conversations positive, but don’t say more than you would want to say directly to the seller in advance of submitting an offer!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 10, 2022 | Blog, Buyers, Buying Conditions, Contracts, Investment Properties, Listings, Market Trends, Mortgage, Property Value, Real Estate
What impact do you think rising interest rates will have on the real estate market?
I can’t tell you how many years the Fed has been warning us that they are going to raise the interest rates, and then nothing happened. But now, it looks like it is finally happening. Less than one year ago, conforming loans with good credit could be procured at rates below 3% fixed. Now they have inched up to 3.75% for conforming loans. While these are still historically great rates, the days of mortgage interest rates in the 3% range appear to be gone and we are slowly inching upward.
What impact will this have on the market? Typically, when rates increase the market slows. Buying power decreases – a buyer will qualify for a smaller mortgage amount when rates are higher. Even if a buyer qualifies for a loan amount, they may not want to pay the added amount each month attributable to the higher rate. Many buyers are cognizant of how much they don’t have available to spend on quality of life purchases, such as dinners out, when they have larger mortgage payments. This boils down to the fact that they may be unwilling or unable to buy at a price they could have last year, and this could depress housing prices.
However, this is counterbalanced by the fact that we are in a market with record low levels of inventory, so it is highly unlikely that interest rates will have any effect on housing prices in the short run. If anything, rising rates should cause buyers to move quickly and lock in homes and mortgages before rates continue to climb. And this would be the most sensible short-term response to rising rates. Buyers – rates are actually going up! The time to act is now!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 2, 2022 | Buyers, Buying Conditions, Inspections, Listings, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
Sometimes it seems like everything is breaking around our house and we get behind on repairs. Isn’t there some level of wear and tear buyers of “previously enjoyed” homes are expecting to have to accept?
The process of selling and buying a home involves many fine lines. How far do you take preparing your home for sale? Do you really need to address all of the items suggested by your agent, the home stager or the home inspector who did a pre-inspection? Do you really have to attend to everything your family has broken or worn out over the years
Anything that could come up on an inspection, if you know about it, really must be repaired or disclosed. My vote is repair. Even with items that are very obvious, when an inspector gets involved, he may blow the issue out of proportion and something that might have cost you $1000 to repair before you listed ends up costing you $3000 on the inspection request. If its something an inspector might find, you can bet he will find it and you will be expected to cover the cost of repair anyhow, so you might as well repair upfront.
Many buyers actually get quite nervous during the home inspection (also known as buyers remorse). If you happened to have gotten one of these buyers, it is possible that they could walk away from your deal if the inspection concerns feel too weighty to them. After you actually receive and negotiate the offer, the last thing you want to do is lose the buyer over items that you could have fixed but didn’t think anyone would notice or care about! In today’s market, they notice, they care. Sometimes they are willing to let you pay for the repair. Sometimes they just walk. Don’t take any chances. If you suspect it is likely someone would seek a repair, get it done!
Buyers, as much as I advocate for sellers to take care of the wear and tear items on their homes, it is important for you to be reasonable on your inspection requests as well. If you see an item that needs to be fixed while you are touring the home, take that into account when you make your offer and do not revisit it on the inspection. Inspection requests are supposed to be for items you didn’t know about and didn’t have a chance to adjust for in making your offer. Again, its a fine line buyers also walk in deciding what are fair and appropriate inspection requests of a seller.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jan 27, 2022 | Blog, Buyers, Buying Conditions, Contracts, Investment Properties, Market Trends, Mortgage, Property Value, Real Estate
We are interested in diversifying our portfolio and purchasing rental properties – any thoughts?
The first thing to keep in mind when considering a rental property is how you intend to pay for it. Rental properties are investment properties and subject to different lending rules than the home that you live in. Therefore, a lender will expect that you put more down as a down payment on a rental property and you will pay a higher rate of interest. Typically, lenders are looking for no less than 20% down on your purchase. And of course until you establish yourself as a successful landlord, your income is going to need to be sufficient to support the mortgage on your primary residence as well as any debt on your rental investments.
The second thing you need to think about is what kind of tenant you are interested in renting to. If you are hoping to rent to a family who might be in town for a couple of years with a temporary job assignment, then purchasing an apartment building with one and two bedroom apartments is unlikely to attract the type of tenant you hope to find. In that scenario, you would be looking for a single-family home in all likelihood (or possibly a townhome) in a good school district such as Quaker Valley. If you are hoping to find young professionals, you might look for something closer to downtown that has a trendier vibe to it.
You also need to take a look at the return on investment that you are seeking from the property. You will need to consider how much you are putting down on the property, how much you were paying in interest on any mortgage that you take out, your property taxes, maintenance of the building, any homeowners association fees, and any utilities that might be the responsibility of the landlord (these are typically utilities that are not separately divided in the particular structure, such as water). Putting together a spreadsheet with all of the expenses and your expected income will help you to determine whether or not the anticipated net income is worth the risk of investment to you. Be sure to build in some vacancy months – most properties are not leased 100% of the time.
Finally, you need to give some thought to how you will manage the property. Are you going to hire a property management company to handle that for you, or will you be more hands-on? Who is going to handle maintenance requests when something goes wrong? The beauty of being a tenant is that if something breaks, it’s not your responsibility to get it fixed. But as the landlord, are you going to be taking care of the repairs and if not, do you have a reliable handyman on-call that is willing to handle those items for you. If you are planning for others to manage the property on your behalf, you will need to build those costs into your financial projections as well. If investment properties are something you would like to consider, feel free to reach out to me and we can discuss these opportunities further.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Sep 7, 2021 | Blog, Buyers, Buying Conditions, Contracts, Inspections, Listings, Market Trends, Marketing, Mortgage, Property Value, Real Estate, Sellers, Selling Conditions
We hear selling a home can be a trying process. Any annoyances a seller should be expecting?
Below is a short list of many of the “joys” sellers might experience during the listing process. Being aware that these are possibilities will hopefully help you take them in good humor if they happen to you!
- The agent showing your home will miss appointments and not call or show up.
- Appointments will be made and cancelled at the last minute.
- Some showings will last about five minutes and some will last 3 hours.
- There will be a day when I call you and say someone wants to see your house, and you are going to ask me when. And I will say: “Look out your windows, they are sitting outside now”!
- Agents are going to knock on your door or even drive by, see you in the yard and ask if can they see you house.
- Agents showing your home will forget to turn lights off.
- Agents showing your home will let your pets out (best to remove them from your home for showings) or your neighbor’s pet in.
- Agents will provide unhelpful feedback – buyers buy homes when they attach emotionally to a home and when they don’t, their feedback is often nonsensical.
- Agents will not provide any feedback – incredibly annoying, I know.
- Expect lowball offers (at least it is a starting point). If your home has been on the market for more than a month, there is a reasonable chance that you priced it too high – maybe the lowball isn’t as low as you think.
- Things will come up on the inspection that you had no idea were wrong with your home and you will be sure the inspector made a mistake. A pre-inspection is a great way to protect yourself against this!
- The buyer will make ridiculous inspection requests.
- The buyer will ask to bring in contractors for estimates for work they want to do after the closing at the seemingly most inconvenient times.
- The property might not appraise at what you are selling it for. In a hot market like this one, this is a real risk. Be prepared to adjust your price if your sales price is over the listing price and it doesn’t appraise.
- The closing date on the contract may change. Lenders and closing companies remain swamped right now – be open to the possibility of a delay.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jun 1, 2021 | Buyers, Buying Conditions, Home Staging, Listings, Market Trends, Marketing, Property Value, Real Estate, Sellers, Selling Conditions
Is there a preferred style that is more desirable to buyers?
Six months ago, I would have told you that buyers overwhelming preferred the gray and white aesthetic. You know the look. White as the base color for “hardscapes” like tile, countertops and cabinetry with gray as the primary color (and perhaps a few pops of color reflected in easy to change items such as throw pillows).
How times have changed! Today, the answer is – buyers just want a home, and if the home is well-conditioned, they seem to be looking past style and focusing on whether their baseline needs, such as the number of bathrooms, bedrooms and garages are met. Design aesthetic and color schemes have become much less important in this sellers’ market.
The next obvious question then would be does that mean that any home will sell in this market? And the answer is yes, as long as it is properly priced for condition. What we are seeing in this market is some homes are coming on priced as if they were completely remodeled and in perfect condition when they may in fact not be. Buyers are paying seemingly ridiculous prices for many homes on the market. However, the common thread amongst homes that are being snapped up quickly and achieving market high prices are that they are perfectly conditioned and well remodeled or are priced in line with the condition and updates that they do have.
In the end, this is an extremely strong sellers’ market in which sellers are receiving more money for their homes and they would have even six months ago. However, while the prices that are realized may not be a function of the design aesthetic of the home as it perhaps was last year, it is still a function of how recently and fully updated the home is and how pristine the condition is, both mechanically and from a cleanliness perspective.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 6, 2021 | Buyers, Buying Conditions, Listings, Market Trends, Property Value, Real Estate, Sellers, Selling Conditions
We keep reading that now is a seller’s market. Do you agree?
YES! We currently have the perfect storm for a seller! We have been experiencing historically low inventory for several months. It has been suggested that as a great portion of our population is fully vaccinated, we may see an influx of inventory. Some sellers, who may have been on the fence about having prospective buyers in their home because of COVID may start to feel more comfortable once we achieve higher vaccination levels and may be more willing to put their homes on the market. Some homeowners have seen COVID as an opportunity to retreat to homes they own elsewhere and, returning to Pittsburgh, are deciding they would prefer to remain in their alternate location on a permanent basis. Some have simply taken a longer vacation to a new location and decided to make that home – with the rise of telecommuting it is now possible to work in remote locations. Whatever the reason, we are expecting a return to more normal inventory levels as we move through 2021, and with that will likely come a cooling in demand – so if you are a seller, NOW is your chance to get your best price from our market.
Also in a seller’s favor are the low interest rates. Rates have creeped up a bit and have seemed to stabilize again – still at historically low rates. Low rates allow a buyer to afford more home, while still paying the same each month. This supports the increasing prices we have seen. If rates continue to climb, that will likely soften the prices a buyer is willing to pay.
It is worth noting, however, that the perfect storm is really happening in our middle market and below. High end homes have not been experiencing the same demand this spring, and are not as affected by interest rate fluctuations. Our high end market is its own entity – yes, it is fair to assume that if you were ever going to achieve your desired price, it would be in this very robust market. But we simply don’t have the same influx of buyers in this price range, and those that we do have tend to be very exacting about what they want in their new home. If yours is a high end home, then its important to be patient – the market does surge in the high end as well – its just less predictable!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 28, 2021 | Buyers, Buying Conditions, Contracts, Market Trends, Property Value, Real Estate, Selling Conditions
Are you still seeing multiple offers on homes these days?
Yes, we are, depending on location, condition and price range. Multiple offers are primarily coming in the under $500,000 market. If your home is in a higher price range, that does not mean that you won’t get an offer, and it doesn’t mean that it won’t be a good offer – but you may only get one, and you may need to wait for it – the market does not always offer instantaneous results. The market is still strong, just not as crazy as it was a few weeks ago – more homes are coming on the market and the buyer demand is starting to be satisfied.
Multiple offers, over-asking-price offers and full-price offers are also far more likely in our hottest neighborhoods and historically most popular locations. Additionally, sellers who have conditioned their home for market, both in staging and making changes to meet current buying trends, are most likely to be those with multiple and/or full price offers. It is very important, however, to keep in mind that your initial asking price will dictate whether or not you receive a high offer. If you choose to challenge the market with your asking price, and are at the top of your neighborhood, it’s unlikely your home will be snapped up or will receive an asking price offer – you may need to be patient and wait for a buyer who sees the value as you do. On the other hand, if you price with last year’s prices, or shoot below market, you are far more likely to spur a bidding war. Yes, we are selling at premium pricing on premium products, but this typically happens because the asking price feels a little on the low end to buyers to begin with. So my best advice to sellers is to take the time to condition your home to meet market expectations and then price carefully – no one wants to give their home away, but do be careful not to overshoot the market’s historic guidance on pricing.
Buyers – you still have a lot of competition out there. If you are looking for a historically hot property (based on size, location or price range), you still need to plan to be very aggressive with your offers if you want to win!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 20, 2021 | Blog, Buyers, Buying Conditions, Listings, Market Trends, Marketing, Property Value, Real Estate, Sellers, Selling Conditions
How exactly do we know what our home is worth?
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 14, 2021 | Buyers, Buying Conditions, Listings, Market Trends, Property Updates, Real Estate, Sellers, Selling Conditions
We continue to look at homes on the Howard Hanna website and have noticed there doesn’t seem to be many homes coming on the market. Just wondering if we’ve missed the peak of the spring real estate season? Have you found that there are typically more houses coming on the market in early summer as school ends?
Historically, our market peaks in April, so if you have been watching our market all spring, you would have noticed the surge in April and the much more modest introductions in May. We will continue to have properties come on the market during the summer months, but fewer than we see in the spring months. The late summer is not a typical time to see new introductions, but they will pick back up after Labor Day.
However, if you are one of the many buyers sitting and waiting for their perfect Village home, this may be a good time to reevaluate your priorities. Inventory is at an all time low and if your goal is to move into our community, you may need to start making compromises. With our continued Village development and all of the exciting new amenities as well as the top-ranked school district, Sewickley has become an extremely popular community choice for buyers. Homes have been selling like hotcakes! Not because they are perfect homes but because buyers are making compromises on their wish list and choosing homes that will work despite their imperfections. Some might need updates. Some might not have the desired lot size or configuration. Some might not have enough garages or even a garage. Some might have too few bathrooms or a less than typical bedroom configuration. Some might be in a noisier location. Some might check every box but be a slight drive “up the hill” where we still have a wonderful selection of fantastic homes available. If Sewickley is your dream, it may be time to start thinking about how to work with one of the many wonderful homes still available rather than sitting on the sidelines as values continue to increase and you get even less for more.
Considering a move outside Sewickley? It is true that the North Hills have a larger selection of inventory due to the larger population base, but the prices are no lower and they are struggling with an equally tight inventory.
One final thought: If you are a seller and you have been sitting on the fence about selling your home, now is the time to call me!
- We have a severe inventory shortage across many price ranges and many eager buyers.
- This spring market will yield your very best possible price.
- The fall market is much more typically a buyers market, so lets get your home on the market today!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Mar 15, 2021 | Buyers, Buying Conditions, Contracts, Listings, Real Estate, Sellers
We have noticed that several homes have sold lately before they have hit the MLS. Are these “pocket listings” a good way to sell your home?
If a home sells before it hits the MLS, as a “pocket listing” as they are often called, it is highly likely that the seller could have sold the home for significantly more money, particularly in this market. The MLS exposes a home to a large number of prospective buyers in a very short amount of time. This widespread exposure is what has the potential to drive the price up for the seller.
A “pocket listing” is more like a secret sale. The agent you are dealing with may have a buyer that is willing to buy your home, but if it’s that easy, chances are you could have received more money if the general public had a chance at your home, and a bidding war could have possibly ensued. If an agent is being straightforward with the seller and discusses the strategies involved with using the market pressure of the MLS to drive in a higher price, it’s a rare seller who will willingly leave money on the table.
So why do we occasionally see these seemingly “secret sales” taking place? Some sellers perceive these pocket listings as a good thing – some don’t want to be hassled with multiple showings, some don’t want the general public to know their home is available for sale. If a seller’s goal is to maximize financial return, however, a pocket listing, or accepting an agreement of sale before the home is marketed in the MLS, is rarely the best strategy.
So no, my 22 years experience indicates that a pocket listing is usually not in a seller’s best interests. The highest returns I have seen sellers achieve occur in scenarios when they have used strategies to maximize the excitement within the buying community through proper pricing, excellent conditioning and staging and full MLS exposure.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 21, 2021 | Blog, Buyers, Buying Conditions, Home Staging, Inspections, Market Trends, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
Sometimes it seems like everything is breaking around our house and we get behind on repairs. Isn’t there some level of wear and tear buyers of “previously enjoyed” homes are expecting to have to accept?
The process of selling and buying a home involves many fine lines. How far do you take preparing your home for sale? Do you really need to address all of the items suggested by your agent, the home stager or the home inspector who did a pre-inspection? Do you really have to attend to everything your family has broken or worn out over the years? Anything that could come up on an inspection, if you know about it, really must be repaired or disclosed. My vote is repair. Even with items that are very obvious, when an inspector gets involved, he may blow the issue out of proportion and something that might have cost you $1000 to repair before you listed ends up costing you $3000 on the inspection request. If it’s something an inspector might find, you can bet he will find it and you will be expected to cover the cost of repair anyhow, so you might as well repair upfront.
Many buyers actually get quite nervous during the home inspection (also known as buyers remorse). If you happen to get one of these buyers, it is possible that they could walk away from your deal if the inspection concerns feel too weighty to them. After you actually receive and negotiate the offer, the last thing you want to do is lose the buyer over items that you could have fixed but that you didn’t think anyone would notice or care about! In today’s market, they notice, they care. Sometimes they are willing to let you pay for the repair. Sometimes they just walk. Don’t take any chances. If you suspect it is likely someone would seek a repair, get it done!
Buyers, as much as I advocate for sellers to take care of the wear and tear items on their homes, it is important for you to be reasonable on your inspection requests as well. If you see an item that needs to be fixed while you are touring the home, take that into account when you make your offer and do not revisit it on the inspection. Inspection requests are supposed to be for items you didn’t know about and didn’t have a chance to adjust for in making your offer. Again, it’s a fine line buyers also walk in deciding what are fair and appropriate inspection requests of a seller.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Nov 23, 2020 | Blog, Buying Conditions, Home Staging, Listings, Market Trends, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
We need to replace our appliances. Any recommendations?
It’s a great time of year to be buying appliances – you may be able to grab a great black Friday deal! However, do be prepared for a wait – the pandemic has brought on an “appliance shortage” and you may need to wait several months for yours!
When choosing new appliances, my first recommendation is that you choose Energy Star certified appliances for several reasons. First – check with your electric supplier before you shop, but rebates are available from many electric companies when you purchase designated Energy Star appliances. Second – you will save money every month on your electric bills. Third – and most important from my perspective – younger buyers tend to be concerned about energy efficiency and often ask for utility bill information on homes they are considering. Energy efficient appliances are a selling point and will enhance the value of your home (don’t forget to point that out when you list!) As more young buyers enter our buying market (and they are buying across all price ranges), this could be an important differentiator for your home.
I still recommend that you choose stainless appliances. While there are many options out there including some pretty interesting colors, I still see buyers responding most favorably to stainless. Sure, they might be harder to care for (you will need a can of stainless polish in your cleaning cupboard), but the look is still quite appealing and “professional.” There is, however, one circumstance when I do not recommend stainless for replacement appliances. If your kitchen has another color appliance (white or black, for example) I do not recommend replacing only one appliance with stainless. If there is one thing buyers uniformly dislike it is mismatched appliances (unlike color, mixing brands is fine). So if you currently have white appliances and don’t think you will be replacing the other appliances soon, stick with white. Even though white (or black) does not have the same appeal that stainless does, a kitchen with two white (or black) appliances and one stainless is the least appealing of all!
Finally, it is worth noting that it is more the look than the brand that is important to buyers. As much as we all like to think the high-end brands are important to people it’s not what I am seeing on the selling side. If the appliance has a good look, buyers are not stopping to ask what the brand name is! So choose the brand that appeals to you – be it a budget decision or a features decision – and enjoy it while you are still in the home!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Oct 30, 2020 | Blog, Buyers, Home Staging, Listings, Market Trends, Marketing, Property Value, Sellers, Selling Conditions, Sewickley
Our home is on the market – is it ok to show it decorated for the holidays or should we take it off the market?
Buyers who are shopping during the holidays are some of the most serious buyers we see each year – most people don’t bother spending their precious holiday time looking at homes unless they have a need to buy. So keeping your home on the market over the holidays is generally a good idea!
Decorating for the holidays while your home is on the market is also not a bad idea – homes often look their best decorated for the holidays – as long as a few basic guidelines are followed. Briefly stated, when decorating this holiday season, keep your decorations more neutral and reasonably simple.
Start by taking a more minimalist approach. You may have bins and bins of holiday decorations like I do, but when your home is on the market, its best to leave some of those decorations packed away. Choose decorations that have less of a religious theme. Snowmen, evergreen wreaths, poinsettias and nutcrackers, for example, have broad appeal. Be careful that the decorations that you do choose compliment your décor. You may have changed the color scheme in your home since buying your holiday decorations and it’s important that they don’t clash! Don’t over-decorate the exterior of your home either. A few well placed, tasteful strands of lights or an attractive evergreen wreath can add sense of warmth to your home, but keep your inflatables packed up!
If you bring in a tree, make sure it doesn’t overwhelm the room. This year a tall, skinny tree might be the best choice so that the room doesn’t feel small. And of course, consider using decorations to highlight some of your home’s special architectural features, such as using candles to draw attention to an attractive fireplace.
When showings are scheduled, a brewing pot of mulled cider or a plate of freshly baked cookies is not only seasonably appropriate but will go a long way toward creating an inviting feel for your buyers. And don’t forget – even if you normally keep your thermostat down, be sure to turn it up for showings so that buyers are comfortably warm!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Oct 20, 2020 | Blog, Buyers, Buying Conditions, For Sale By Owner, Listings, Market Trends, Marketing, Pittsburgh, Property Value, Real Estate, Schools, Sellers, Selling Conditions, Sewickley
Do you think living in a top ten school district adds value to our homes?
Absolutely! There is no doubt in my mind that living in the Quaker Valley School District, ranked in the top ten in Western Pennsylvania, adds both value and sale-ability to our homes. We are fortunate to live in a district with well state-of-the-art elementary and middle schools and a hard-working board that continue to work to keep the caliber of our schools at a very high level.
How do these impressive rankings translate into more money for you? Families moving into Pittsburgh have been a significant force behind our home sales for decades. Buyers with children almost universally start their home search considering school districts. Our school district not only offers top numbers, but it is small and can afford more personal interactions between families and faculty. This personal touch makes Quaker Valley both unique and a highly sought-after school district for people moving to Pittsburgh.
Relocation buyers are not our only customers. We see dozens of home sales each year to families living in other Pittsburgh communities where the school districts are not as acclaimed looking to improve the educational opportunities for their children. Pittsburgh neighborhoods that seemed fun and exciting to DINKS give way to sensible communities with outstanding schools like Quaker Valley once kids come along.
And yet we are a small community, with limited housing options. As our educational performance continues to shine, living in Quaker Valley continues to be a strong draw for buyers coming from both near and far, and yet we only have so many places to house these buyers. The increased demand for housing in the District has continued to push our housing prices up, and that has become particularly evident in some of our more affordable price brackets, which are feeling less affordable each year.
So yes, absolutely – living in such a highly acclaimed school district is a very important component of housing value and driving more and more families to explore the possibility of living here. Despite our new construction, the very limited nature of our housing inventory, when combined with the strong demand resulting from the excellent reputation our school district has maintained, is continuing to put strong upward pressure on our housing values.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Oct 5, 2020 | Contracts, Inspections, Listings, Real Estate, Sellers
We hear that selling a home can be a trying process. They say forewarned is forearmed. Any annoyances a seller should be expecting?
Below is a short list of many of the “joys” sellers might experience during the listing process. Being aware that these are possibilities will hopefully help you take them in good humor if they happen to you!
- The agent showing your home will miss appointments and not call or show up.
- Appointments will be made and cancelled at the last minute.
- Some showings will last about five minutes and some will last 3 hours.
- Agents showing your home will forget to turn lights off.
- Agents showing your home will let your pets out (best to remove them from your home for showings) or your neighbor’s pet in.
- Agents will provide unhelpful feedback – buyers buy homes when they attach emotionally to a home and when they don’t, their feedback is often nonsensical.
- Agents will not provide any feedback – incredibly annoying, I know.
- Expect lowball offers (at least it is a starting point).
- Things will come up on the inspection that you had no idea were wrong with your home and you will be sure the inspector made a mistake or the buyer will make ridiculous inspection requests. Remember this easy rule of thumb – if the requests total less than 1% of the sales price, its usually best to agree to the requests, regardless of how ridiculous they might be.
- The buyer will ask to bring in contractors for estimates for work they want to do after the closing at the seemingly most inconvenient times.
- The property might not appraise at what you are selling it for – with the hot market we are in and with homes often selling in bidding wars with multiple offers, there is a risk you might have to make a downward adjustment in your sales price.
- The closing date on the contract may change. Again, lenders are overwhelmed right now and \many closings have been delayed, sometimes for a week or more. This does not mean that your buyer cannot buy your home – it just means lenders are overwhelmed and missing deadlines – be prepared to be patient.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Sep 29, 2020 | Blog, Buyers, Contracts, Listings, Market Trends, Mortgage, Real Estate, Sellers-Contracts
With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offer?
Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value. If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home. Your bank will need your new home to appraise so that your debt percentage is not greater than 80%. If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.
If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price. While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.
There is a definite risk that in a hot market you could overpay for a home. Homes are in some circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home. Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Sep 23, 2020 | Blog, Buyers, Contracts, Listings, Marketing, Sellers
We have been waiting for a while for some new homes to come on the market –are you anticipating more listings soon?
It has in fact been a very active summer season and it sure does feel like inventory is very low. In fact, we currently have ONLY 82 listings available for sale in the Quaker Valley School District – in most years that number would be approximately 200! So when we say that we need listings, we mean it!
Yes, we do expect that there will be more homes coming on the market in the new year. While March & April tend to be our largest listing months every year, we have had a few introductions recently and as a general rule they have flown off the market. We have a tremendous amount of pent up demand. There are dozens of buyers in every price range sitting on the fence waiting for their “perfect” listing. If you are one of those buyers, you should expect that you will have some stiff competition as we are seeing bidding wars with multiple offers in many price ranges. So make sure you have your financing in order and be prepared to move quickly if you see something that looks like it could work.
If you are one of the many Village dreamers we have out there, start thinking now about what compromises you might be willing to make to get a home. As Pittsburgh grows, our inventory is not keeping up with housing demands and we will continue to see a tighter and tighter housing market and increasing prices. Compromise will be necessary to even get into a home here.
Finally, if you are thinking of selling your home, I have said it many times before, but PLEASE reach out to me! I offer completely confidential consultations and strategic plans to maximize your returns, with a nearly 22-year proven track record. There is no better time to be selling your home!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Oct 14, 2019 | Blog, Buyers
We would like to buy an investment property – something that we can fix up and then rent. Any tips?
Real estate rental properties can be a great way to diversify your investment portfolio and create an income stream for retirement, if you hold your properties long enough! During your ownership, if you have invested properly, the tenant’s rent should be covering your mortgage and taxes and maybe even generating some cash. Over time, the rent will have purchased you a home and the income stream becomes cash in your pocket, or the home an asset you can sell and invest in something else (Retirement home? Child’s education?)
However, before you run out and start buying investment properties, there are a few things you should consider beyond the financial aspects. First, consider where you want the property to be. Lower priced properties may not be in our best school districts, and while there are always people looking to rent, the rents will be lower. Also consider the risk of non-payment. The lower rent properties may also bring tenants with riskier jobs which could increase the possibility of having to evict tenants.
Consider your own location as well. Do you want a long drive to the property if there is an issue? Are you planning to stay local or might you be transferred, raising the question of whether you should sell the property? If you are not planning to manage the property yourself, how much will property management cost you and how will that impact your profits?
Finally, and most importantly, consider how much “fixing up” you are willing to do. Investors frequently underestimate the amount of time and money it will take to create a property that is actually desirable to renters. You need to anticipate dedicating a significant amount of your personal time if it is a project. The concept of calling a general contractor will deeply erode your profits – the best investments are the ones you are personally involved in at a high level. Also keep in mind when making your improvements, this is not going to be your personal home. Your choices should be what the mainstream market wants and should be the least expensive choices that still convey an appropriate level of quality. Investment properties should not be your opportunity to put your personal stamp on a home – save that for the home you plan to stay in! If you would like to consider an investment property further, give me a call – I can help you with that! 412.779.6060
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jun 4, 2019 | Blog, Buyers, Inspections, Real Estate, Sellers
My home has so many special features. I think it would be best if I were at showings so I could explain them to prospective buyers. Is that ok?
When you are selling your home, its normal to think that only you can fully convey your home’s fine qualities to a buyer. This leads some sellers to consider the possibility of being home for showings, so that they can make sure that the buyer prospects appreciate all of the home’s amenities. While this may seem sensible to a seller, nothing could be further from the truth!
When buyers visit your home, it is important that they be allowed the space to imagine the home as their own. This starts, of course, with home staging, so that the home is not overly personal when the buyers arrive. But it extends to allowing them to tour the home alone with their buyer agent. For buyers to buy a home, they must bond to a home. For buyers to bond to a home, they need to be free to relax in your home and chat with their agent about what they would do to make the home their own. This will not happen if you are present. So what can you do to make sure they appreciate your home’s qualities? Hire a listing agent who will design a custom brochure for your home that is available when buyers visit your home. Such a brochure is your best ammunition – they can take it home and recall all of your home’s wonderful features and get their questions answered as well.
Giving the buyers their space extends to the home inspections as well. The period during the home inspection is one of normal buyer remorse. Did we buy the right home? Will a better home become available? Allowing buyers the freedom to return to your home alone will allow them to bond again to your home and stay committed to it during the sometimes difficult inspection process.
In fact, the only time you should interact with your buyer is at the closing. From initial showing to return visits, inspections and walk-throughs, you should always vacate your home and give the buyers their space!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 28, 2019 | Blog, Buyers, Home Staging, Sellers
Everyone says we need to “neutralize” our home before we try to sell it, but what does that mean?
If you watch HGTV or read my weekly articles, you likely know how important it is to neutralize your home before you sell. But what exactly does that entail? Paint color is obvious. Your home is far more likely to sell for top dollar if its painted in a neutral color palate. This does not mean your home must be nothing but white. It does, mean, however, that you should remove most strong colors in favor of “colored” neutrals – colors such as greige or light gray. A colorful room or two is fine as long as the color was chosen in the past couple years (trends in color change quickly, but when you live with a color daily and are not in the design business, you probably don’t realize when a color is no longer “in”).
Neutral colors in floor coverings is also key. Colored carpets are extremely difficult to sell. Be careful with ceramic tile –when it goes out of style, it is painfully obvious that you have dated tile and its expensive to replace. However, neutralizing a home goes beyond paint color and floor coverings. Consider the age of your most likely buyer. Buyers these days in their 20s, 30s and 40s as a general rule favor clean lines to florals. If you have floral drapes, silk flower arrangements or large floral prints on your upholstery, this could be a real turn off to a buyer even though these items do not convey with the home. The impression says dated even if the structure itself is not. This is pretty simple to address, however. Pack these things up – you are moving – get a head start. Drapes are great for decorating but unless they are very recently installed, they are unlikely to help your sale – most buyers prefer to see your windows. Slipcover furniture if it’s fabric trends toward yesteryear’s design styles.
Neutralizing also goes to removing personal effects – family photos being the most obvious. And of course, its important to neutralize odor. If you have pets, keep litter boxes perfectly clean and pet beds, blankets and toys frequently laundered. Have a friend double check – you should not be able to tell you have a pet when you enter your home. If you smoke, don’t smoke inside. If you like to cook with spicy food, avoid it while your home is on the market. If musty odors emanate from your basement, run a dehumidifier 24/ 7. If your refrigerator stays with your home, make sure it is clean and smells fresh.
A neutralized home may seem impersonal to you, but try to remember, you are moving! While it may not be your style, it is far more likely to attract a buyer and a good price!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 21, 2019 | Blog, Mortgage
I have a friend who just had a terrible time closing on his mortgage loan because he moved some money into his checking account right before closing. Any tips om making sure the mortgage process is a smooth one?
Mortgage rates remain low, but the process of obtaining a mortgage is more complex than most buyers appreciate. Underwriters are extremely detailed in their review of mortgage applications – one small “mistake” could derail your entire application. Take the time before you buy to understand the possible pitfalls, and then steer clear for a smooth mortgage process.
First, don’t make large undocumented deposits into your bank accounts. Mortgage guidelines require that underwriters review all deposits reflected on bank account statements. If there are deposits present on a bank statement and the underwriter cannot tell where the funds came from, then the underwriter may ask for you to provide a “paper trail” to document the source of the funds used for the deposit. When making a deposit, keep the associated paperwork (i.e. the “paper trail”) you may have received that would show where the funds came from for the deposit (i.e. check stub, copy of check, receipt for liquidation of another account, etc…). Try not to make cash deposits if at all possible as it is difficult to show where “cash” came from. Try not to move your money around between accounts. There will be plenty of time to consolidate funds if you desire after you’ve closed on your new home. Be sure to save ALL pages of your bank statements. Do not throw them away or shred them.
Second, strive to have ‘boring’ bank statements – no NSF charges, no unusual deposits, not a lot of moving around of money between accounts. Achieving this will definitely make your mortgage process go smoother.
Finally, don’t open new credit and don’t take on new debts. Unless advised to do so by your mortgage professional, you should try to avoid having your credit checked by anyone or taking on any new debt (i.e. credit cards, car loans, lines of credit, etc…). Numerous credit inquiries may impact your credit score which in turn could affect your mortgage loan and interest rate quote. In addition, underwriters may require that you write a letter explaining the inquiries on your credit report stating if you did or did not acquire any new debts as a result of the inquiry. While it’s tempting to take advantage of an extra 10% off at a department store if you open a new credit card with them, it may be best in the long run to pass on those offers and use one of your existing credit cards.
Check back next week for more tips on making your mortgage application process a smooth one!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 14, 2019 | Blog, Inspections, Listings, Sellers
Selling our homes seems like it will be a very stressful endeavor. Is there any way to make it any easier on us?
Once you have lived long enough, you realize that if there is something to be done, there is usually an easy way and a hard way. When it comes to selling your home, why not make it easy? If you make it easy, you are far likelier to have a successful transaction.
First and foremost, make access to your home easy for buyers. Use a lockbox and always be ready to show. Busy agents with serious buyers don’t have time to track down keys held by listing agents, or worse yet, schedule showings around your listing agent’s schedule. You can’t sell if you don’t show – make it easy with lockbox access (which notifies your agent immediately every time it is accessed) and be ready to accommodate last minute showing requests.
Make negotiations easy. When you do receive an offer, do not get upset or offended. Every buyer approaches negotiations differently. Some will need to give you long letters explaining their analysis of value. Don’t take it personally – just understand that it is a unique opportunity to understand how buyers perceive your home. If one buyer is bold enough to tell you, the chances are there are others with the same concerns. While you likely put your heart into the home, you are leaving and need to detach. Be pleasant and non-defensive in your response and try to focus on the one or two points in the offer that concern you the most. The more flexible and good-natured you appear, the easier it will be to get and keep the buyer in the deal. Be easy to reach during negotiations as well. The more protracted the negotiations, the greater the chance the buyer’s interest will wane and you will lose the deal.
Make inspections easy. I have said this many, many times, but if there are conditions that exist that are called out by the inspector and they were not on your disclosure, you should expect to pay for them or lose your deal. You can make this very easy on both you and the buyer – have your home pre-inspected – then a buyer can make an offer knowing the condition at the time of offer and you should sail through the inspection.
Sound easy? It is! Keeping these simple concepts in mind will make your home sale much easier.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 6, 2019 | Blog, Buyers, Inspections, Sellers
I’ve heard that agreements on many homes have fallen through lately from home inspections – why is that?
Our market has traditionally been one where buyers know they are buying old homes and allow the seller some leeway in not presenting a “perfect” home from an inspection standpoint. However, in many parts of the country, this is not the case. Sellers are expected to remedy all issues noted by home inspectors prior to closing. As more and more people migrate here from other parts of the country, our prices are going up, but so are the buyers’ expectations as to a seller’s responsibility for concerns discovered on a home inspection. At the same time, inspectors are getting significantly more particular. And so yes, it is absolutely possible to have purchased a home only two years ago and have new concerns arise that clearly existed and were overlooked when you bought your home. And yes, it is equally possible that you will be expected to fix them and if you refuse, your sale might fall through.
This can often leave a seller feeling like they are the unlucky one who got stuck holding the “hot potato.” As the years pass, the list of “hot button” issues mounts and if you are the owner when the issue is discovered, you will be the one paying the bill even though the home was bought and sold many times in advance of your ownership. These hot button issues include items such as old sewer lines, radon, mold, damp basements, lead water lines, asbestos (fireplace inserts, duct tape, pipe wrap or flooring) knob and tube wiring and pushmatic electric panels. If your home has any of these issues, you should figure you will be the one footing the bill and address them before they become an issue on a home inspection.
The best way to prevent an inspection fall through or an unexpected bill for defects is to have your home inspected before you put it on the market. A pre-inspection will allow you the opportunity to fix those items that can be fixed and disclose the rest to save yourself from a laundry list of requests. Be sure not to ignore the small stuff that comes up or that you know is wrong. For example, when I list a home, I specifically ask sellers if all of their windows open, stay open, shut and lock, and if any are cracked or have broken seals. Sellers more often than not disclose no issues with their windows and yet it is one of the most frequent inspection deficiencies. Take the time to do your homework – get your home inspected – repair or disclose any possible concerns – and save yourself from a long last-minute repair list and potentially even from losing your sale.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 30, 2019 | Blog, Buyers, Home Staging, Sellers
What do you think about all of the TV shows that focus on home buying and selling homes?
If you follow my column, you have undoubtedly noted me mentioning for what seems like years now that our market is hot and our inventory has never been lower. It certainly couldn’t be a better time to sell. You may in fact have just heard that your neighbor’s home sold for top dollar in record time. How do you make that happen? Start by watching more TV!
Surprising advice, perhaps, but TV sets our style expectations and our aspirations of how we want to live our lives. Your potential buyers are watching TV and then coming to your home and expecting to see what they saw on TV. Want to make the most money? Meet their expectations!
This is easy to do if you also watch a healthy dose of HGTV. There you will quickly find the latest trends and tips on how to achieve them in a cost-effective manner. You will see what home designers are pushing and know what buyers will be looking for in your home. House Hunters is a particularly good show to learn from. You will get insight into buyers’ thought processes – you can listen in on their conversations and take note of the factors that affect them in both positive and negative ways. Armed with this information, you will be ready to spring into action and create a home that buyers are instantly attracted to. And why are they attracted? Because they saw it on TV!
As a full-time real estate broker, every day my job lives like an episode on House Hunters. Through countless hours listening to my clients as they evaluate potential homes, I am easily able see how HGTV has greatly impacted the home selling process. Those sellers who choose to take to heart the lessons espoused on HGTV are rewarded with more money in less time. They create instant attraction by making their homes appear as if they were pulled straight from an episode of HGTV. So whether you plan to sell next month or next year, start watching more TV, put the advice into action and pocket more money when you sell! And if you’re not a fan of these shows, give me a call and I will come out and give you an abbreviated version as it applies to your home!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 16, 2019 | Blog, Buyers, Pittsburgh, Sellers, Sewickley
What is going on with the high-end market in Sewickley? Why don’t there seem to be many high-end sales?
Our high-end market has been slower than normal for over a year now. Speculation abounds as to why that is the case, but it doesn’t seem that we are alone – sales of higher end homes in many pockets of this country have slowed. Many attribute that to the fact that our tax system was restructured to allow for a larger standard deduction and lower marginal rates but at the cost of limiting the deduction for property and income taxes to a combined total of $10,000. For high property tax jurisdictions such as our own, many commentators believe this has caused a slow-down in high-tax (i.e., high priced) home sales. I have held out hope that when people filed their taxes this past Monday, maybe they would discover that they are better off under the new system despite the deduction limitation and we would see the property tax fear fade into the background. I must admit that even as a former tax lawyer I have found the new forms a bit confusing, so I am really hoping we will see some favorable spin coming from tax preparers this week.
We may however need a general mindset adjustment. As a whole, our income taxes in PA are lower than the majority of states. Our earned income tax here in Sewickley is only 1%, compared to 3% in the city of Pittsburgh. We do not have sales tax on clothes or food as many states do. So while our property taxes may be on the high side, we are in a far better position overall than many residents of metropolitan areas with similar advantages to Pittsburgh. Property taxes are just a cost of living, and if your bucket list includes the amenities of a higher-end home, the taxes are what they are. The sooner our marketplace accepts this reality, the sooner our higher end homes will start selling again!
In the meantime, our middle and lower end market segments are moving fast and often with many offers. Homes in these segments that are priced appropriately for condition and amenities are often selling with multiple offers, and in a very short amount of time. These market segments are accelerating quickly in their pricing. Waiting for the home to show up on your Zillow search is likely going to be too late. If a move is something you’ve been considering, give me a call and we can strategize on how you can best meet your needs in this complex market we find ourselves in! 412.779.6060
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 9, 2019 | Blog, Buyers, Sellers
What advice do you have for pet owners hoping to sell their homes?
I am a dog lover. In fact, there are two canine members of my family. 60% of Americans own a pet, and 40% are dog owners. As a dog lover and owner I am aware that not everyone loves pets. If I am a home seller, this is particularly important to keep in mind.
It is critical when selling your home to remove any and all evidence of Fido!
What exactly does this entail? Smell should be your first concern. If you live with a pet you are probably used to the smell and don’t notice it, but your buyer will. Carpets should be professionally cleaned and deodorized to remove any possible smell. If any smell lingers after that, you probably need to change the furnace filter and quite possibly have the ducts cleaned. If you are still living in the home it is critical to keep all your pet things clean – launder blankets regularly, keep crates wiped down, empty litter boxes every day and give your dog a weekly bath. I can’t stress this enough. Any smell at all could kill your chances at an offer.
Cleanliness should be your next concern. If your home is vacant, after you move out make sure there is no evidence of a pet having lived there. Make sure there are no hair balls hiding in corners or behind doors. Clean or replace air return grills as they have likely become laden with pet hair and dander, resulting in a dirty look. Clean the vent cover on the bottom of refrigerators as well – they are often clogged with pet hair. If you are still living in the home, you must address all of the above as well as making sure that physical evidence of a pet disappears during a showing. Pack up toys and beds and tuck them in a discrete location.
Finally, if at all possible, remove the pets themselves for all showings for the best chance of selling the home. While Fido is likely cute as can be, many people are either fearful or allergic – why take any chances?
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 2, 2019 | Blog, Buyers, Sellers
April 15th always reminds me of taxes, and how high our taxes are here. Is this a disadvantage when it comes to selling homes in this area?
I always counsel my new clients relocating here from other states that property taxes are something that need to be viewed as part of an entire budget. Yes, our property taxes seem much higher than in many other regions of this country, and yes, upon first look, it can be a deterrent. But my advice to out-of-towners is to consider how much they pay each year in all forms of tax.
In Pennsylvania, we only pay a 3.08% income tax rate and here in Sewickley, we add on top of that an additional 1% on earned income only. We currently have no sales tax on food and clothing. We also have very low car registration fees at only $36/car. In some states, income tax alone can be as much as 8% – 9%, car registration fees/yearly taxes can exceed $550+/car and they do impose sales tax on food and clothing. If buyers are counseled to look at the big picture, more often than not they find that they are actually saving money when they move to Western PA, despite our high property taxes, but it does take a skilled realtor to get them over this hump.
When dealing with local buyers, property taxes are a much bigger issue. When moving up, buyers definitely have to consider taxes – they won’t be getting any new income tax breaks by just moving across town. Recently, the federal tax law changed and there is a $10,000 cap on the deductibility of the combined total of income and property taxes. Nationwide, this seems to have created a softening in the sale of high-end homes as there is little to no subsidy for your property taxes anymore (depending on how much you pay in state and local income taxes and whether they, on their own, move you above the $10,000 threshold). The expectation is that the lower federal tax rates will offset the reduced deduction, but for many who haven’t filed their 2018 returns yet, it’s too early to tell. My sense is that this will all settle out over the next year or two as we all adjust to the new tax rules.
In any event, whether buying or selling, it’s important to take the time to make sure that your taxes are in line with the market value of your home – if they are not you should appeal them so that inappropriately high taxes don’t become an even larger deterrent to a purchaser.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Mar 26, 2019 | Blog, Buyers, Listings, Marketing, Sellers
We are ready to put our home on the market but are private people and would prefer not to have the home in the MLS. Could you just show it if you hear of a prospective buyer?
I may be repeating myself here, but in this hot spring market, it really is an important message. There is simply nothing more powerful for driving in a high offer for your home than listing it with a real estate agent who is fully engaged in the marketing and selling of your home! Yes, you did ask a realtor, so you probably expected that answer, but here’s why.
First, Sewickley loves a secret sale. Everyone loves knowing what no one else knows yet, and buyers feel really special if they get the first chance at your home. But that secret sale is unlikely to drive in your best offer. What credibility do you as a seller have for pricing your own home? All homeowners love their homes and most feel they are worth more than the comparable sales. A real estate agent with a proven track record for pricing homes correctly is going to add an air of credibility to your asking price.
Buyers at secret sales will also automatically go for the “you don’t have a realtor” discount. In other words, you are saving nothing by not listing your home with an agent – the buyers will discount their offer to you based on what they think you would have spent in commissions. So your net will be the same (at best) as if you did have a realtor and yet you don’t have an advocate on your side helping you through all of the tricky scenarios that come up in selling a home.
Secret sales are also just that – they are not publicized city wide. There could be a buyer in the South Hills waiting for a home like yours and without a full market press, they will probably never find your home and may buy another, frustrated that “nothing” is on the market.
But most important of all – buyers at secret sales don’t feel the market pressure that a real estate agent can bring to your home. If there is a potentially interested buyer and they see your home marketed absolutely everywhere, they will assume that there are many other buyers out there and they are more likely to succumb to the pressure of the market and perceived competition and pay you more. If it is a secret sale, they can take their time, think carefully, and ultimately will either talk themselves out of buying altogether or talk themselves down in price. Neither is a good answer for you.
So don’t take any chances – if you are serious about selling, list your home with an experienced full time agent and engage the power of our larger market to drive in your best deal. Give me a call today and we can develop a strategy that is tailored to your specific needs and goals!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Mar 19, 2019 | Blog, Market Trends, Real Estate, Sellers
We are thinking of moving and want to make our home as perfect as possible for the market. How would you describe the “perfect” home that buyers today are looking for?
The warm weather is waking up the dreamer in all of us it seems! Thankfully, we all have a different idea of the perfect home, which keeps our market moving twelve months a year. Buyers are not all waiting for that one special home. They are waiting for their special home – but special comes in so many different shapes and sizes. Nonetheless, when thinking of selling, you will have a much better chance of selling your home quickly and at a higher price if you improve and decorate your home in a way that appeals to more buyers. Most homeowners settle into their cozy homes and forget all about trends and what’s hot in the market, and so it often comes as a shock when its time to sell and they have fallen behind the times in either amenities or style.
Want to know what’s in style with today’s home buying crowd? Pick up a Pottery Barn or Restoration Hardware catalog and that will give you a quick lesson on color palates and designs that are “in.” Of course, the lower you price your home, the further you can stray from current trends and still capture a buyer. But assuming you are like most of my clients, it’s sometimes easier to inventory what’s “out.” As realtors, this is a difficult message to share with your clients – the message is not that you do not have a lovely home. But in selling homes, one must first accept that you are leaving that home and then seek to minimize potential buyer objections while maximizing the “wow” factor.
With that in mind, here is my 2019 short list of the “gotta gos” – if you have these in your home, you are well advised to invest to sell: non-neutral carpeting, shag carpeting, wallpaper (unless applied sparingly and in the last 5 years), bold paint colors, stained woodwork (except in dens), paneling, dated lighting fixtures, non-neutral bathroom tiles and tubs, wooden toilet seats, linoleum flooring (except in lower price brackets) and formica countertops (except in lower price points).
Some wonder if offering the buyer a decorating credit is a good alternative to making changes pre-marketing. My experience suggests that credits are not effective. Buyers often screen homes online and never have the opportunity to find out about a credit. It’s best to make the updates. Some sellers believe that it is better to leave things the way things are and let the buyer make the changes to suit their tastes. This works, but only if you keep your price down. If you are looking to take advantage of possible market premiums. Not sure where to start? Give me a call and I can help connect you to the resources you need to get your home market ready!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Mar 11, 2019 | Blog, Buyers, Market Trends, Real Estate, Sellers
What is going on with the more expensive homes in Sewickley? It doesn’t seem like many are selling.
Sewickley’s high end market, defined for these purposes as homes listed above $1 Million, can be a very fickle thing indeed. I recently took a look at 6 years of data in this market segment and the results were fascinating. The fact that you sense the high end market may be less robust than in years past might be because we only sold 6 high end homes from May 1st to December 31st, 2018 (an eight month period). This was quite a surprise as we had sold 9 high end homes in the first four months of 2018. So far in 2019 we have seen three high end homes go under agreement – exactly the same number as sold in the same period last year. We are all hoping that we can return to a cycle in line with our 2017 numbers – in that year we sold an additional 17 homes after February 28th! If you look at long-term patterns its evident that these ebbs and flows are quite common in our high end. In 2014 we recorded an impressive number of high end sales. In 2015 that number was a bit more anemic.
What stands out in looking at the data, however, is that in the past six years the number of high end buyers coming to us through relocations to Pittsburgh is dropping. This may be because there are other high-end neighborhoods that have been built across the region and Sewickley is no longer one of the only communities you can move to if you want to buy a high end home. Buyers can choose a home in the north hills, for example, with the latest and greatest everything for less than they would have to spend in Sewickley. This may also be because some employers who anticipate faster turn around do not want their employees buying – our rental market is doing quite well as a result.
What to do if you are living in a high-end Sewickley home? First and foremost, we must keep our schools and community strong. What we have is unique – there are very few walking communities in the area and fewer that are in a top school district. Support our local stores, attend community events, give of your time and finances to our schools and non-profits. This helps to keep Sewickley wonderful and will help protect your investment. Don’t rely on everyone else – we are all busy but we all need to do our part to keep Sewickley appealing to new families. Second, be sure when you are ready to put your home on that market that you have taken the time to really prep it for market and that it shows fabulously. Remember, you aren’t just competing with the other homes in town – you are also competing with new construction in adjacent communities and those usually present as move-in ready!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Mar 4, 2019 | Blog, Buyers, Market Trends, Real Estate, Sellers
I am wondering if you could give an update on how the spring market is looking so far?
The spring market is off to an incredibly strong start, from a seller’s perspective, IF a home is listed under $1million. New introductions are selling, often with multiple bids, and sometimes in less than 24 hours. Homes that have been on the market for many months are also selling, and even they sometimes have more than one offer! It is exactly what we all expected – a vibrant market, and its only early March!
Buyers are understandably frustrated! While houses are coming on the market, the lines of buyers in the more affordable price ranges would look like the black Friday lines at Best Buy when they are selling TVs for $100! New introductions are selling fast and for more than a simple analysis of the comps would suggest is a market price. But if you have been waiting for 6-12 months, this may be your best chance at a home that could work for you, so you may have to pay more to beat out other buyers and get in the door!
How do you win in a market like this? Buyers, you MUST be pre-approved for your financing. You need to know exactly what you can afford and be able to prove that, in writing, to the sellers you are trying to convince to pick you. Yes, there is some up-front work involved, but this is what it takes to win in today’s market! You should also have chosen and signed on with a buyer’s agent – waiting for homes to hit Zillow or to have an open house is not an effective way to win in a hot market. You need a full-time agent dedicated to getting you home options as soon as they are available. If you really want to win, you also need to spend some time assessing the compromises you are willing to make – 20 years in this business and I can state with confidence that the perfect home is just not out there!
Sellers, we have a huge inventory shortage that has been going on for two market cycles but this is not reflective of the norm in Western PA. The tables will turn at some point back to a buyer’s market. If a move is on your radar screen, now would be the absolute best time to call me to develop a strategy to get your home on the market and give you the best return on its sale!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 27, 2019 | Blog, Buyers, Market Trends, Mortgage, Real Estate
We’ve been out of school for a few years, have been great savers and are thinking about buying our first home, but with the recession not so far behind us, it seems like a risky proposition. Any advice?
The millennials, as they are known, are a very risk adverse generation, having watched first-hand as many family members lost their jobs and/or their homes in the last recession. It’s not hard to understand why they have been the slowest generation to embrace home ownership as part of the American dream. But as scary as it might seem to take that first big step, home ownership remains one of the best investments you can make, and the sooner you get in the game, the sooner you will start making measurable progress toward achieving your financial goals.
Keep in mind that most of the housing losses from the 2008 recession were due to the immediately proceeding banking practices that are now far behind us. People were allowed to borrow without proof of ability to pay, to start with, and many used their homes as ATM machines, financing cars, vacations and college educations on their presumed housing appreciation. Today the lending laws are much stricter in an effort to prevent another crisis, and so you can be assured that if a lender has qualified you for a particular loan amount, you have passed some of the strictest standards and are more than well qualified by any objective standard to get in the housing game.
Owning a home will always be a far better choice than renting. It’s a rare day that owning what you are renting wont cost you less every month, and you are building equity (money you get back when you sell someday) with each payment. If you compare how much it costs you to own a home over 30 years, versus how much it would cost you to rent that home over 30 years, you will always have spent less money and in the end, you will have an asset that you own and can resell if need be. In addition, owning a home gives you certain federal tax breaks that renters don’t get, which further reduces the actual cost to you of owning a home. Home owners also lock in their housing cost for as long as they own that home. So while your $2000 rental payment will go up each year as your landlord increases the rent, how much you spend for a mortgage is locked in for as long as you own your home. Stay there 30 years and you will still be paying the same mortgage payment that you are paying today! No landlord will give you that deal!
This is complex, no doubt, and I would be happy to meet with you to go over the numbers in person, but there is no doubt that its never too early to get into the home ownership game!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 12, 2019 | Blog, Inspections, Listings, Market Trends, Real Estate
Our neighbor just had to replace their sewer line – is that a common home inspection repair?
Sewer lines have become as radon was 20 years ago – today’s hot button for home buyers. In some boroughs (Mt Lebanon, for example) the borough now requires that before a home seller can transfer ownership, the sewer line must be scoped and must be without issues. Here in the Sewickley area, we do not have any boroughs imposing any such requirement on home sellers, but many buyers today do have a scope performed of the sewer line as part of their home inspection. And yes, if issues are discovered, they do expect the seller to remedy them. If a sewer line needs to be replaced, the cost will likely be between $5,000 and $10,000.
Sewer lines are not something we think about on a daily basis. As long as we don’t have back-ups, we assume that all is well with the line. But this is not necessarily the case. With older homes, sewer lines were made of terracotta pipe and this can break easily and can also be easily infiltrated by tree roots. If you live in an older home and haven’t replaced your sewer line, there is a good chance you have some issues.
Paying for a sewer camera test is not anyone’s idea of a good time, but if you are contemplating a sale of your home, it is probably a smart, pro-active thing to do. If you discover a problem in advance, there may be some cost-effective options for you to solve the problem without a full replacement of the line. Sewer lines can often by lined with a plastic liner. Tree roots can often by removed by hydrojetting. If you wait for a buyer to perform the test, you may get stuck with a full new line — the buyer might not accept one of the compromise options. So its best to explore the sewer line now, before it becomes an issue, and make any needed corrections.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jan 30, 2019 | Blog, Buyers, Listings, Market Trends, Mortgage, Pittsburgh, Real Estate, Sewickley
We’ve been thinking about starting our search for a new home but were wondering if we should wait until more homes come on the market this spring?
The spring market is here (although with the forecasted low temps for this week it may slow things down a bit)! Buyers are definitely buying right now, so if you think a move is in your future, despite the cold temperatures, the time to get started is now! We have seen homes that have been sitting for months go under agreement in the past couple of weeks, some with multiple offers, and our inventory is dwindling. We still have many nice options available for you to consider, and this is a far better time to buy than March, April or May.
Why, you may wonder? We have such a severe inventory shortage with lines and lines of buyers waiting for homes to come on the market. Many homes are selling in just a couple of days, before many buyers have a chance to get out and take a look. As we head into spring this will only get worse. While none of us have crystal balls, there does not appear to be an avalanche of inventory coming on the market in the coming weeks. I expect by March 1st the bidding wars will begin in earnest for well-conditioned, well-priced homes. (As a side note, even with the inventory shortage that we have now had for well over a year, this is Pittsburgh and not California – buyers still exercise a healthy dose of common sense in making their buying choices and don’t tend to overpay – it is still important to price based on historic sales and not exceed recommended pricing by sizeable amounts). If you don’t want to end up in a bidding war, where there can only be one winner and it may not be you, shop now and avoid the crowd! You may very well get a better deal than you could on the same house in another month!
In doing so, be sure to follow the advice passed on in prior columns (you can refresh your memory on my blog where these columns are posted each week –see www.AskKathe.com). Be SURE that you are pre-approved so that when you are ready to buy, you don’t have to waste precious time with this necessary step. When you do this, be sure your credit is good or clean up any issues and reestablish good credit. Give me a call so we can get you set up to be notified of all new listings immediately! And if you might consider selling your home, call me today! We have lines and lines of buyer prospects for your home!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jan 23, 2019 | Blog, Buyers, Mortgage, Real Estate
I know you don’t have a crystal ball, but what do you think about mortgage rates right now?
The short answer: I think they will only go up! We just had a slight drop in the rates this past week, but that is not expected to hold. If you are considering buying, now is definitely the very best time to take out a loan – by next month rates could have bounced back up again! There is really only one problem I see with this otherwise sage advice – inventory is very limited right now! You may not find anything that you want to buy!
The good news is we do have a new mortgage product that will allow you to lock the rate for 60 days, even if you haven’t found a home! The process is quite simple. The loan application is processed just like if you had found a home – you make full application and turn in your paperwork. You then have 30 days to get a home under agreement and the remaining 30 days to close. For those of you who are committed to buying in the short term, this is a very good option to guarantee you the lower rate while still giving you time to shop. If you don’t find a home within 30 days, you do lose the rate lock but you would have still completed the paperwork for your future loan application!
Prospective sellers, lower rates are good news for you too! Buyers can afford more when rates are lower and home prices therefore tend to be a little higher. We are officially in the long-awaited spring market, rates have dropped a bit AND we have a scarcity of inventory – the perfect trifecta if you are contemplating a sale! Give me a call and we can develop a strategy to maximize your return in this favorable climate!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jan 15, 2019 | Blog, Buyers, Mortgage, Real Estate
We are interested in viewing homes but have been told that before doing so, we need to provide a pre-approval letter or proof of funds letter. Is this really necessary?
Getting yourself pre-approved to buy before you start viewing homes is an excellent idea. You will have to have a pre-approval letter to submit an offer (sellers are going to want assurances from an independent third party that you can afford the home before they take their home off the active market to sell to you). And you certainly don’t want to start looking at homes that you think you can afford, or that you were told you could afford last year, before interest rates increased, only to be disappointed to find out that the home you love is outside your price range. Getting a pre-approval upfront is the most sensible approach – in this hot market, you could easily lose out on a home while you wait for a lender to pull your information together and get you the letter. It is best to get it done up front.
Necessary? That depends on the agent you are working with and the sellers of the homes you are viewing. Some agents simply will not put a buyer in their car until they have completed the pre-approval process. On reflection, this makes sense. Realtors are one of the only professions that don’t charge for their time as it is expended – they are paid for their time only when (and if) you actually close on a property. Getting pre-approved upfront shows that you are serious about buying a home and not just out for a house tour! Some sellers also require pre-approvals be provided before they will allow their homes to be shown. As you might imagine, there are some homes that many people would like to see, just for fun, such as very expensive homes or homes of celebrities/ sports stars. However, selling a home is not about providing entertainment to the general public. One would hope that buyers would understand that sellers do not want to take the time to prepare for a showing to a buyer who is just out for fun – and hence, for those homes that might be a curiosity to many, it is important for sellers to require a pre-approval in advance.
If you are serious about a move, then financing, whether through a loan or with cash you have saved, is a necessary part of the buying process. My best advice is to go ahead and line up your financial ducks before you start the home search process. If you need help finding an excellent lender, give me a call!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jan 8, 2019 | Blog, Buyers, Home Staging, Inspections, Listings, Market Trends, Property Updates, Real Estate
We last updated our home twenty years ago and are now ready to downsize. Does it make sense to put it on the market at a lower price or do we have to make updates before we list?
You absolutely do not need to update your home before you list! I’m sure that comes as a relief to you. However, if the last significant updates you made were twenty years ago, you must price accordingly. Even if your bath tiles are white, for example, and not a turn off, the size and style of tiles has changed in two decades and the baths, although neutral, will feel dated to buyers. One of the biggest mistakes sellers make is to note what their neighbor’s home sold for and price theirs accordingly. If the neighbor had new baths (as opposed to neutral baths) or a new kitchen, or new paint colors… they will get significantly more money for their home. The key to selling with no updates is to get a likely value in “as is” condition from a local expert – I can help you with that! It is important to be clear when pricing, however, what you intend to do before listing – some sellers have projects planned but not completed and that would be important to take into account. As long as you price your home right, your home will sell without updates.
Before deciding to list “as is,” however, it is a good idea to consider what the cost of recommended updates would be and what they might yield you if you make the investment. Usually, when updates are made right before a sale and are in line with current design preferences, your home will sell faster and the higher price you receive will be far greater than the cost of the updates. If this is something you would like to consider, I would be happy to meet with you to discuss what you might update and how the updates might increase your value. You could then make an informed decision about whether or not to list “as is” or update.
In the end, you may decide that you value the simplicity of an “as is” listing and the increased price realized is not worth your time and the stress of a project. Even in that case, it’s a good idea to still stage the home for sale by decluttering and giving it a good scrub down (including windows and carpets). Homes that are clutter free and have been recently deep cleaned will also sell faster and yield a higher sales price, even if they are not as updated as buyers might prefer.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jan 3, 2019 | Blog, Buyers, Contracts, Listings, Market Trends, Mortgage, Real Estate, Sellers
It’s a new year and we’re ready for a new home! What should we do first?
Well, you are asking a Realtor that question, so the answer is probably expected! The first thing you should do is call me! Once you have done that, here is a look at what comes next! First, we will meet and determine the likely value of your home in the current market. The market is quite fluid and values move up and down depending on supply. Currently we have had very low inventory for an extended period of time and buyers are getting very frustrated, so it is possible that we may see an uptick in values again this spring. When we meet we will also review all of the many ways I will be marketing your home and the timetable for rolling out the marketing to optimize your result.
Once we set a timetable that works for you, you will want to spend some time “staging” your home. At the most fundamental level, this would involve you “de-cluttering” your home. It’s amazing how quickly we will our closets, basements and attics! Movers are not cheap – you do not want to move more than you know you will want to keep. So now is the ideal time to start the clean-out. In fact, we sometimes have closings as quickly as 3 weeks after an offer is presented, so it is best to assume that you will not have much time to pack later and do the clean-out up-front. This will also help your home show off its spaciousness and storage capabilities! If you are saving things for others (such as the pile of furniture I have stored in my basement for my adult children who I am sure are going to want my 30 year old furnishings someday!), then it would be advisable to find an off-site storage facility and move those items from your home (or more realistically, I would be happy to connect you to charities to come pick them up and give you a tax deduction in exchange – the reality is that those we save for probably really don’t want our stuff anyhow!) If this all seems incredibly overwhelming to you (and you’re thinking you would rather stay put than face the inevitable clean out), I would be happy to connect you to a home organizer that can take on as little or as much as you don’t want to do!
Once you feel you are “de-cluttered,” the next step toward selling your home would be to determine whether any repairs or improvements are needed or recommended. I am happy to walk through your home with you in advance of your listing date and discuss what you might consider addressing and its likely impact on your bottom line. Not ever seller wants to make repairs and improvements and ultimately that choice is yours, but the market data I will provide to you will help you decide whether its worth it to you to make the additional investment in your home. If repairs are not possible, we will work on using the disclosure to make sure you are sharing the items upfront with the buyer and pricing accordingly. This will protect you later from costly repairs if the inspector is the one to raise the issues.
It’s a lot to do, but together we can make your 2019 real estate goals a reality!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Dec 27, 2018 | Blog, Buyers, Listings, Market Trends, Pittsburgh, Real Estate, Sellers, Sewickley
Now that Christmas is behind us, we are thinking about making a housing change in 2019. What is the optimal timing?
The strength of our early spring market is always weather dependent here in sunny Pittsburgh! In a “normal” winter our spring market starts in earnest in mid-January. Certainly by February you would want your home on the market if you are seeking a spring sale. Our early spring buyers (January, February and March) tend to be our best, especially following a period of such unheard of inventory lows. There is currently a long line of buyers eagerly waiting for new market introductions – the competition will likely be great in the early months of our new year, maybe even driving in more of the bidding wars we saw this past fall.
Of course, the interest rates have climbed steadily throughout 2018 and that may put a bit of a damper on rising prices in 2019 – but if inventory remains as low as it has been in 2018, the impact should be minimal. And if we have a rough winter, as some predict, it may slow the start of our spring market. But of course, we won’t know that until we are in the thick of it.
All things considered, my best advice to you is to give me a call today so that we can design a strategy that is best for your family and your personal goals. Being ready to go in the spring market as soon as it starts to show signs of life, be it January, February or March, will inure to your benefit!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Dec 11, 2018 | Blog, Home Staging, Market Trends, Sellers
The holidays are here and our home is on the market – any tips for selling during the holidays?
The holidays can be a challenging time to sell your home – the number of people looking for a home is much lower than almost any other time of year. But those who do look around the holidays are usually very serious buyers and so it is worth making sure that your home presents as well as possible.
Start with a good fall cleanup! It’s definitely time to put your yard to bed! Make sure your yard is well raked and all dead plants removed. Curb appeal is even more important in colder months when the landscaping is less lush and appealing to a buyer. Make sure gutters are cleaned and everything outside is looking crisp.
Make sure you keep your thermostat up for showings – walking into a cold house for a showing can be a real turn-off. Warmer homes will cause buyers to linger when its cold outside – which will allow them time to admire your home’s wonderful amenities. And of course, with as gray as Pittsburgh can be in the winter, be sure all of your lights are on for showings (and that you have working lightbulbs in all of the lights). Its also a good idea to put a few lights on timers if you are away so the home always looks cheerful from the street.
Holiday decorations always add cheer to a home, but be careful not to overdo it! Keep your decorations this year on the more minimal side, and try to avoid religious themed decorations. Be sure that you de-clutter BEFORE you decorate and also be sure that your decorations coordinate well with your décor scheme. And of course, avoid large inflatables in your yard!
Finally, don’t forget that if it snows, you must keep your driveway and walk clear of snow so that the buyers can easily get inside!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Dec 5, 2018 | Blog, Buyers, Marketing, Pittsburgh, Real Estate, Sellers
We’re hoping to move in the New Year and are beginning our search online – is there anything we should keep in mind?
The majority of buyers will shop online during their search for a new home, and many will actually begin their search there, like yourselves! The real estate industry has come such a long way in the 20 years since I started in this business. Back in what feels like a different century (perhaps because it was), we used bulky multilist books that were delivered every other week to find homes for our clients. Now you can access the entire nation’s real estate inventory on national websites such as realtor.com in the comfort of your own home!
The internet has made it incredibly easy for buyers to do some preliminary research for a new home. It does have its limitations, however, which is where your expert real estate agent can fill in the gaps.
Online listings, if managed well by the listing agent, will always look amazing. Wide-angle lenses and professional photographers are employed, as well as photo-editing software and virtual staging, to make a home look as attractive as possible online. It’s worth keeping in mind that pictures may lie – be careful not to screen out potential homes just because the photos aren’t fabulous – rely instead on the wisdom of your agent. If she has listened to your feedback and is familiar with the inventory, she will be your best screen for which homes are better than they appear, and which may be worse.
Online listings also don’t give you much of a sense of location. While google earth may help with some of this, until you actually drive by a property, you may not be able to tell physical lot characteristics that may be a positive or a negative to you. Online listings also can do little to convey a sense of neighborhood or community. Again, that is where your real estate professional should be able to fill in the picture for you.
Finally, online listings are only as good as the agent who enters the data – there may be information about the property that is not entered into the MLS, either by agent oversight or by simple lack of space, that might make a home more desirable to you. Information such as camera security systems, water softener and purification systems and high-efficiency mechanicals may have real value to you and is rarely listed online.
Online shopping is a great way to familiarize yourself with the market, but connecting with a Realtor who is an expert in the area of interest to you is your best course of action once your curiosity grows more serious.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Nov 20, 2018 | Blog, Buyers, Contracts, Market Trends, Mortgage, Real Estate, Sewickley
This time of year we all take the time to give thanks for all of the wonderful things in our lives. I have much to be thankful for. The obvious chart toppers are good health, wonderful family and friends, and a warm home to come home to each day (which I particularly appreciate on these chilly November days!) My gratitude extends much further, however, to all of the people I work with every day that make real estate transactions so seamless for my clients – from the best mortgage brokers and closers to incredible home inspectors and handymen, contractors, electricians, roofers… that I can count on to give their best to my clients. With them by my side (or on speed dial) I have been able to provide the highest level of service to those with whom I work, and for that I am grateful.
My gratitude, however, extends even further – to forces I can’t control. We have been very fortunate to have historically low interest rates for a very long period of time (and even though they have been inching up, they are still comparatively quite low), and a taxing structure that has favored home ownership as an investment. I am always reminded that Uncle Sam, through the mortgage interest deduction, effectively pays a portion of my mortgage every month. Through the system as structured, we are not only able to own homes for less than we could pay to rent them, but at the same time we are building equity which will be there for us when we retire and are seeking that nest egg to purchase our retirement home with.
Are you taking advantage of all that is available to you? It’s hard to imagine that there will ever be a better time to begin or increase the size of your nest egg in real estate. If you’re ready to downsize and cash in your nest egg, it’s an absolutely ideal time – inventory is low, interest rates are still on the historically low side and we have buyers waiting in line for Sewickley homes. The spring market starts in January – the time to sell is now! Enjoy your holiday, and give thanks for all that is wonderful in your life!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Nov 5, 2018 | Blog, Buyers, Listings, Pittsburgh, Real Estate, Sellers, Sewickley
We need to replace appliances – any recommendations?
When choosing new appliances, my first recommendation is that you choose Energy Star certified appliances for several reasons. First – check with your electric supplier before you shop, but rebates are available from many electric companies (Duquesne Light is one) when you purchase designated Energy Star appliances. Second – you will save money every month on your electric bills. Third – and most important from my perspective – younger buyers tend to be concerned about energy efficiency and often ask for utility bill information on homes they are considering. Energy efficient appliances are a selling point and will enhance the value of your home (don’t forget to point that out when you list!) As more young buyers enter our buying market (and they are buying across all price ranges), this could be an important differentiator for your home.
I still recommend that you choose stainless appliances. While there are many options out there including some pretty interesting colors, I still see buyers responding most favorably to stainless. Sure, they might be harder to care for (you will need a can of stainless polish in your cleaning cupboard), but the look is still quite appealing and “professional.” There is, however, one circumstance when I do not recommend stainless for replacement appliances. If your kitchen has another color appliances (white or black, for example) I do not recommend replacing only one appliance with stainless. If there is one thing buyers uniformly dislike it is mismatched appliances (in color – mixing brands is fine). So if you currently have white appliances and don’t think you will be replacing the other appliances soon, stick with white. Even though white (or black) does not have the same appeal that stainless does, a kitchen with two white (or black) appliances and one stainless is the least appealing of all!
Finally, it is worth noting that it is more the look than the brand that is important to buyers. As much as we all like to think the high end brands are important to people its not what I am seeing on the selling side. If the appliance has a good look, buyers are not stopping to ask what the brand name is! So choose the brand that appeals to you – be it a budget decision or a features decision – and enjoy it while you are still in the home!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Oct 3, 2018 | Blog, Buyers, Inspections, Listings, Real Estate, Sellers
As a home seller, are there inspection type items that we are simply going to be stuck addressing?
Who can forget the old childhood game – pass the hot potato? The object, of course, was to not be holding the hot potato when the music stops. We have our fair share of “hot potatoes” in real estate too, and just like in the childhood game, someone always gets stuck holding the hot potato.
You may wonder, what are these hot potatoes of which I write? Years ago, it was radon. If you were selling your home and it had radon levels in excess of the EPA limit of 4.0 pCi/L, you got stuck paying the remediation bill (usually less than $1000) because a buyer isn’t going to agree to buy a home with a radon problem. That hasn’t changed, but if a home has sold in recent years and ever had radon, chances are it has been remediated.
Next, the media exploded with stories of illness caused by mold in homes and suddenly, sellers were faced with mold inspections. There is the very bad black mold (Stachybotrs), but honestly, all molds have the potential to make you sick. As you can imagine, buyers aren’t going to buy a home with a mold problem either, and once again, the seller bears the cost of remediation and often, the cost to solve the cause of the mold problem as well. The cost can be several hundred to several thousand dollars.
These days, the hot potatoes have expanded to include two tricky electrical issues. Pushmatic electrical panel boxes are very expensive to maintain and the manufacturer is no longer in business. Most buyers will require a seller to replace these panel boxes – the cost per panel is generally $1500+. Knob and tube wiring is the other big hot potato for homes built before 1930. Rewiring an entire home can range between $10,000 – $20,000 and so many homes retain this original wiring. Most insurance companies will no longer issue new insurance policies on homes with this antiquated wiring. Therefore, if knob and tube wiring is discovered on an inspection, the cost of the rewire also generally falls to the seller – very few buyers are willing to buy a home (at least not unless they are getting a substantial discount) if it has knob & tube wiring present.
If you own a home with one of these hot potatoes – radon, mold, pushmatic panel or knob & tube wiring – things that years ago wouldn’t have raised an eyebrow – you should expect that when you go to sell your home, you will be stuck with the cost of getting rid of the hot potato, if you haven’t already done so!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Aug 27, 2018 | Blog, Buyers, Contracts, Inspections, Sellers
How do home sellers protect themselves from big walk through bills from a buyer?
Buyers conduct a final walk through right before they close on a home. This is probably the first time they have seen your home vacant. If they find conditions they aren’t expecting, you can expect a bill at the closing or a last minute request to remedy the condition.
What kinds of things might come up? There are many things that can cost you money at a walk through. Here are a few. If you have any damage to your floors (even if it was there when you bought the home) and you failed to list the damage on your disclosure, and it wasn’t obvious when you walked through your occupied home (under rugs or furniture), you can expect that the buyer will expect you to pay for the repair/replacement when he discovers the issue, which could be a significant expense. What should you do? Disclose. Disclose. Disclose! When you list your home, take the time to make sure your disclosure lists every possible condition issue with your home.
If you leave anything behind that isn’t attached or specifically included, you should anticipate you may be required to call a last minute hauler to remove the items. If the items were there when you bought the home, that’s no excuse. The house must be empty when you leave unless you have the buyers’ specific consent to leave the items behind.
Forget to cut the grass in a few weeks? You could be asked for a credit to have the lawn mowed. Forget to clean the house? If its not at least “broom swept clean” you could be paying a cleaning fee. Forget to complete your inspection repairs or forget to check the work and make sure it’s done correctly? You can’t rely on the contractors to get it right – you must check the work – if they didn’t finish or did the wrong thing, you will likely have to pay for the repair again. Accidentally remove an inclusion such as the TV wall mount bracket? You may have to pay for a new one.
Take the time to make sure the home is exactly as you would want it were you moving in and be pro-active with your buyers if you discover any issues on your move out to avoid any closing table surprises.
If BUYING or SELLING real estate is in your future, please get in touch with me and put my expertise to work for you!! As YOUR REAL ESTATE ADVOCATE, I will help you avoid pitfalls like those mentioned above. 412.779.6060
RECENT SALES
To see these and other recent sales, visit HERE
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Aug 22, 2018 | Blog, Buyers, Market Trends, Pittsburgh, Sellers, Sewickley
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"]
by Kathe Barge | Aug 14, 2018 | Blog, Buyers, Pittsburgh, Real Estate, Sellers
A friend asked me how to pick a Realtor to work with. Any advice you could share?
Selecting the best realtor for your needs is a very personal process. Surprisingly, however, some real estate consumers don’t know where to begin. The internet is such an easily accessible tool for doing your homework before you commit to an agent, and yet so many people fail to take advantage of all that is available to them, and then months or in some cases years later are still complaining at cocktail parties or book clubs about how they are not satisfied with their choice of agent.
In this age of technology, there is no reason not to do some homework upfront, before committing to an agent to handle what is likely your largest business transaction. You can begin by looking at the qualifications and experience of the agent you are considering. What certifications do they have? Certifications such as ABR (Accredited Buyer’s Representative) and CRS (Certified Residential Specialist) 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, which can only enhance your experience with the agent.
Check out their online marketing next. The majority of Buyers start their search online these days. How does the agent market her homes? Check out sites like realtor.com, Trulia and Craig’s List. Are there visual tours? What do you think of the photography? Would you buy the home, or even take a second look? Be sure to check out online recommendations while on these sites.
Finally, when meeting with the agent, ask for statistics. How many days does it take her to sell a home on average and how does that compare to the market generally. How correct is her pricing? How often does she have to reduce the price of a home before it sells? Reflect on how she calculated this data. Is it a guess or does she have the data to back up the numbers? This will all help you determine the value of the advice you are receiving.
Each of these factors inures directly to your benefit and your bottom line. So take the time – get to know our credentials, marketing, past performance and recommendations – and make an educated decision when choosing your next real estate agent.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jul 30, 2018 | Blog, Contracts, Real Estate, Sellers
We received an offer on our home but would like time to figure out where we are going next before we respond.
Is that reasonable?
Momentum is important in life. We learn this lesson early on. As a child, you learn that the likelihood of a getting that candy bar in the grocery store is at its peak the moment after you ask. You are willing to give more to get in those initial moments – you might have offered to clean your room if you could just have that candy bar. The parent also knows that she can get more initially in exchange for that candy bar – your interest will wane if she doesn’t take advantage of your interest at that moment. That lesson continues throughout life.
And so it is with real estate. Sellers who respond and negotiate quickly to offers are far more likely to catch a buyer in the heat of the moment and achieve a higher price. If a buyer is given too much time between the time their offer (or later counter offer) is made and the time they hear from the seller, they are far more likely to rethink their willingness to pay more, or perhaps even their interest in buying at all. By dragging their feat in responding, in over-analyzing whether they will achieve a higher offer later, or whether they can live with the buyers terms as proposed, many sellers leave thousands of dollars on the table that they could have captured if they had just negotiated with haste.
A failure to respond quickly also increases the risk that a buyer will be distracted by another listing. One of my favorite true stories is the buyer who signed an offer on a Saturday – the seller was too busy to meet with their agent and review the offer until Monday evening. As luck would have it, another property came on the market Monday morning and by the time the seller responded (on Monday evening) to their Saturday offer, the buyer had made an offer on and fully negotiated the purchase of a different property. That seller waited 9 more months for the offer they finally accepted at $55,000 less than the offer they were too busy to hear. Sellers, don’t make these mistakes! When you are fortunate enough to get an offer, respond and negotiate quickly for your best chance at a good result. If you are not sure where you will go next, there is always the possibility of a rental, which is likely a better option than losing a good buyer.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jun 13, 2018 | Blog, Buyers, Contracts, Inspections, Real Estate, Sellers
We closed on our new home recently and when we went on the walk through, the seller had not completed the inspection repairs that they had agreed to do and didn’t seem to think was an issue. Your thoughts?
I have noticed a trend lately away from respecting contracts. I’m not sure if its because consumers don’t understand what they are signing, are too busy to keep everything straight or just don’t care. Whatever the reason, the real estate contract and its addendums are what makes a real estate transaction work. If you want to sell your home, you need some kind of document that binds the buyer to your home so that they don’t just walk away, leaving you holding a home you just moved out of and unable to close on your new home. It is equally important to the buyer – they need a document by which a seller is actually bound to sell their home so that the buyer is also not sitting on the curb waiting to unload the moving van and unable to get the seller out (and yes, real estate is specific performance – if you sign a contract to sell, you must sell).
There are some basic principles to keep in mind that apply to all contracts. Sellers, if you include something on your disclosure, it is important that you actually leave it behind for the buyer. The stove and dishwasher are obvious, but what about garage door openers? When you are listing your home, take the time to be sure that you correctly list what is included – misplace a garage door opener and you are contractually required to buy a new one for the buyer.
If you agree to fix something during an inspection negotiation, then yes, you must actually get it fixed. Its not ok to have the buyer show up for the walk through and find out you haven’t taken care of the agreed upon repairs. What you signed is legally binding – do what you said you will do or be prepared to give a hefty last minute credit to the buyer. If you do get the items fixed, be sure to pay your bill before closing! These repair bills are not the buyers’ responsibility and its also not ok to agree to make a repair and then stick the buyer with the bill.
And remember, the contract requires that your home be in the same condition it was in when the buyer made you the offer. If you break something, you will need to fix it prior to closing. At 13 pages, it is a lengthy document but it is important that you understand what you have agreed to do. We can’t all be attorneys, so be sure to hire a realtor that you have confidence will thoroughly explain what you have signed and help you to be a good seller and honor all of its terms!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jun 5, 2018 | Blog, Buyers, Inspections, Real Estate, Sellers
From what we hear, it seems buyers are very picky on home inspections these days. What should a seller expect?
What a Seller needs to be prepared for on a home inspection needs to be evaluated in the context of the entire deal! Both buyers and sellers need to keep things in perspective. If a Buyer got a great deal on a home, then the inspection should be more about major things that the Buyer could never have known about. If a Seller got top dollar for a home, the Seller should expect to be very generous on the inspection resolution with the buyers. Sellers do need to expect that a buyer paying close to asking price will expect the inspection items to be addressed by the Seller unless the Seller had disclosed them on the Disclosure.
The Disclosure is a Seller’s friend. What a Seller discloses is supposed to be outside the scope of inspection requests. These are items that the Buyer should be taking into account when making their initial offer. Therefore, when filling out the Disclosure, Sellers will want to review it carefully to be sure it is thorough. Inspectors do not miss anything these days, so it will be far less of a financial blow to a seller if all possible issues are noted up front.
Of course, a pre-inspection may be a Seller’s best approach for a smooth transaction for all parties. While a seller will spend approximately $400 up front, it gives you a chance to repair or disclose the issues before they possibly destroy a deal. Remember, if buyers and sellers can’t come to a resolution about inspection concerns, the deal is terminated and both parties move on. Sellers, you obviously want to sell or you wouldn’t be undergoing the joy of preparing your home for showings. Keep the big picture in mind and understand that unless you are giving your home away, your buyer will expect you to fix what you didn’t disclose. Don’t like the sound of that? Pre-inspect so you know what you will have to address upfront.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 31, 2018 | Buyers, Contracts, Inspections, Listings, Real Estate, Sellers
I’ve heard that agreements on many homes have fallen through lately from home inspections – why is that?
Our market has traditionally been one where buyers know they are buying old homes and allow the seller some leeway in not presenting a “perfect” home from an inspection standpoint. However, in many parts of the country, this is not the case. Sellers are expected to remedy all issues noted by home inspectors prior to closing. As more and more people migrate here from other parts of the country, our prices are going up, but so are the buyers’ expectations as to a seller’s responsibility for concerns discovered on a home inspection. At the same time, inspectors are getting significantly more particular. And so yes, it is absolutely possible to have purchased a home only two years ago and have new concerns arise that clearly existed and were overlooked when you bought your home. And yes, it is equally possible that you will be expected to fix them and if you refuse, your sale might fall through.
This can often leave a seller feeling like they are the unlucky one who got stuck holding the “hot potato.” As the years pass, the list of “hot button” issues mounts and if you are the owner when the issue is discovered, you will be the one paying the bill even though the home was bought and sold many times in advance of your ownership. These hot button issues include items such as radon, mold, damp basements, lead water lines, asbestos (fireplace inserts, duct tape, pipe wrap or flooring) knob and tube wiring and pushmatic electric panels. If your home has any of these issues, you should figure you will be the one footing the bill and address them before they become an issue on a home inspection.
The best way to prevent an inspection fall through or an unexpected bill for defects is to have your home inspected before you put it on the market. A pre-inspection will allow you the opportunity to fix those items that can be fixed and disclose the rest to save yourself from a laundry list of requests. Be sure not to ignore the small stuff that comes up or that you know is wrong. For example, when I list a home, I specifically ask sellers if all of their windows open, stay open, shut and lock, and if any are cracked or have broken seals. Sellers more often than not disclose no issues with their windows and yet it is one of the most frequent inspection deficiencies. Take the time to do your homework – get your home inspected – repair or disclose any possible concerns – and save yourself from a long last-minute repair list and potentially even from losing your sale.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 22, 2018 | Blog, Buyers, Inspections, Real Estate, Sellers
Can you explain how Buyer Agency Agreements work?
The State of Pennsylvania does not recognize oral buyer agency – if you want the representation of a Realtor in your real estate transaction, you must sign a written Buyer Agency Agreement with that Realtor. If you do not, the Realtor you are trusting to help you with the purchase of your new home must by law represent the interests of the Seller. This means that the Realtor cannot advise you on anything that could be against the Seller’s interests, including property condition, neighborhood factors, and valuation advice and cannot provide negotiation or inspection strategies. You are on your own! I can’t imagine why any buyer would choose not to enter into a Buyer Agency Agreement – the Seller is still paying the commission and you get a Professional’s advise at no added cost to you! Buyers are well advised to enter into such an Agreement so that they are getting advice on the homes they are seeing, from the perspective of their best interests.
There is one caveat. You an only enter into one Buyer Agency Agreement at a time, or you could end up owing more than one Realtor a commission. Therefore, you need to be sure that you disclose to other Realtors (such as those you meet at open houses) that you have a Buyer’s Agent (so you don’t end up signing more than one Buyer Agency Agreement by accident). As long as you buy a home that is in the MLS, you will not owe a commission at the time you buy your home – that is included in the listing price of the home. Real estate can be a tricky business – in small towns like Sewickley, there is always an undercurrent of “quiet listings.” In these situations, it is important to disclose any “off-the-market” opportunities to your Realtor – most “for sale by owner” (FSBO) sellers are only trying to save the listing side of the commission, acknowledge that qualified buyers are usually working with a Buyer’s Agent and will gladly pay the Buyer’s Agent fee as long as they are approached by your Realtor and this is discussed up-front.
Some Realtor’s require you to sign a Buyer Agency Agreement at an initial meeting, therefore it is important to have done your research up-front and be sure the Realtor you are choosing is a good match for your needs. Check online testimonials, review credentials and even ask to interview past clients if you would find that to be helpful. Other Realtors may give you a “courtesy” day where they will show you homes, you can get to know them and they you before deciding to work together. Once you choose your Realtor, you will sign the Agreement and at that point will be entitled to full Buyer representation.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 7, 2018 | Blog, Buyers, Contracts, Market Trends, Mortgage, Real Estate
With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offer?
Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value. If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home. Your bank will need your new home to appraise so that your debt percentage is not greater than 80%. If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.
If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price. While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.
There is a definite risk that in a hot market you could overpay for a home. Homes are in some circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home. Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 1, 2018 | Blog, Home Staging, Inspections, Market Trends, Property Updates, Sellers
The information on Zillow is incorrect about our home. Should we address this?
Zillow is relied upon by millions of consumers for their real estate information and so it is important, if you plan to sell your home, that the information be correct. Incorrect information can lead to poor buying decisions on a buyer’s part and might also adversely impact your Zestimate. On their website, in the very fine print, Zillow itself admits that its Zestimate reliability in Pittsburgh is not particularly good, but most people don’t read the fine print. So before you list your home for sale, take the time to check it out with Zillow and correct the errors you see by clicking on the “Correct Home Facts” tab, setting up an account and submitting the requested error corrections. It is possible to dispute the Zestimate as well, so if you are listing your home for sale and the number is significantly lower than you anticipate it is worth, it may also be worth your time to do this before you list.
It is important, however, to be aware that whatever you post to Zillow stays there. As tempting as it might seem to try a “For Sale By Owner” to “save” the real estate commission (and I say this with emphasis because it is the buyer, and not the seller, who is paying the commission – if you are a FSBO they expect you to deduct the realtor fees you are not paying from your price, so the savings is theirs), I do NOT recommend listing FSBOs on Zillow. Once they are there, they become part of a price history on the home, and if you ultimately employ an agent and try to raise the price, the buying public will be able to see online your earlier price and you will struggle to get traction at the higher price point.
Zillow is a popular online tool for many consumers (my preference is howardhanna.com as it is not owned by a publicly traded company reporting to shareholders and is not selling space to make money for shareholders, which in some instances may not be in a consumer’s best interests). Given that many consumers use Zillow, I do recommend you take the time to get the information about your home correct before listing!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 12, 2018 | Blog, Buyers, Real Estate
Are rising property taxes and the cap on the ability to deduct property taxes on our federal tax returns going to hurt real estate sales?
Unfortunately, the changes in the federal tax laws may already be impacting our housing market – the higher end market, most impacted by the $10,000 cap on the deductibility of taxes, has shown noticeable slowing over last year. Rising tax millage rates are only going to exacerbate the problem, but rising costs have long been a reality of the world we live in and are to be expected.
What we need is a mindset shift, which will be slow in coming. We all need to step back and look at our tax package as a whole. Pennsylvania is a comparatively low taxing state when it comes to income tax. Our state income tax rate is only 3.07% — this is impressively low when compared to many other states (note our neighbors in New York at 8.82%, West Virginia at 6.5% and Ohio at 4.997%, and the top taxing state of CA at 13.3%). What we are saving in income tax, we are paying in part in property taxes and this needs to be kept in perspective before making bold statements about how much property tax one will or will not pay. Additionally, the $10,000 cap on deductibility of taxes as a cap on the combined sum of property and income taxes, so those in higher income tax states will be hit much harder by this. We really do still have it pretty good in PA!
When considering property taxes, rather than focusing on what one is not getting, buyers would be well advised to think about what you are getting. On a $500,000 assessment, the taxes in Sewickley borough would be approximately $41/day. On a million dollar assessment, they would be approximately $82/day. Compare this to the cost of hotels that you stay in on vacation! If you enjoy coming home everyday to a home that feels inviting and relaxing to you, if it is a home that your family thrives in and that provides shelter and sanctuary that you love, that seems like a small price to pay, even without the tax breaks. There is a cost to living – the food we eat (a dinner out can cost more than the daily property tax rate), the gas we burn to heat our homes in these unseasonable chilly Aprils, the cell phone bills to stay in touch with family and friends. Property taxes are just another one of those costs of living. I think it will be a long time (if ever) before we see that tax break return. Reframing our thinking about property taxes, keeping in mind the otherwise low taxing state we live in and the intangible benefits that you and your family receive from living in a home that you love, is my recommended course of action!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 4, 2018 | Blog, Buyers, Pittsburgh, Sellers
We have been reading about fraud in real estate transactions – is this a real issue we should be concerned about here in Pittsburgh?
Fraud has become a rampant issue in the real estate industry. In the past 6 months I had several transactions where the parties received what appeared to be legitimate emails from their lenders attempting to reroute funds needed for a closing. Fortunately, I had educated my clients on the risks and all of them were quick to recognize the possible fraud and no money was lost. Not all real estate consumers are this lucky, however. Unfortunately, money lost in these scams is almost never retrievable so its important to educate yourself to the risks and exercise extreme caution around all money transfers in real estate transactions.
The typical scam is one in which the buyer receives what appears to be a legitimate email about their closing requesting information, with the ultimate goal to lure the buyer into wiring the money due at closing to a fraudulent account. There have been instances where scammers have actually hacked into a lender’s server and are sending emails from a legitimate account. Many consumers nationwide have fallen prey to these scams.
How can you avoid being victimized? First, be aware that there is a risk of fraud any time a wire transfer is involved. If you are planning to use a wire either to send funds or receive proceeds, extreme caution is warranted. Second, send and receive emails to your lender and closing company through a secure email only (and this is not the case with your standard gmail account – lenders and closers have specially protected servers for these purposes). If you don’t have access to one, ask your lender or closer to send you an email from theirs that you can you to respond to. Third, always independently verify phone numbers you are calling , either by looking at a business card or prior written document that you received or searching online for a number—do not just call the number you see in an email. It is preferable to provide and confirm wire instructions over the phone with a trusted human rather than sending them off into cyber space. Finally, if it seems fishy, it probably is. Anything requesting partial payments or making last minute changes is a definite red herring – stop and verify – involve your agent and make sure that what you are responding to is legitimate before making a hasty mistake you might soon regret!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Mar 22, 2018 | Blog, Buyers, Listings, Market Trends, Pittsburgh, Sewickley
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"]
by Kathe Barge | Mar 13, 2018 | Blog, Buyers, Home Staging, Listings, Market Trends, Real Estate, Sellers
With the weather starting to warm up outside, any tips for selling our home?
Spring is in fact on it’s way! The bright sunshine and warming temperatures will unlock our yards from their winter nap soon and it’s a great time to be focused on making sure the outside of your home looking great for prospective buyers. Curb appeal is critical to attract buyers – if your home doesn’t look great from the street, buyers (who often drive by before making an appointment to see a home) may decide they aren’t interested before stepping inside. Start with the front of your home and work your way back to your non-public spaces. On our sunny days, head outside and make sure you have cleaned out your beds from the fall. Rake out any leaves, trim back shrubs. Order fresh mulch to be delivered the first week in April. Keep an eye out for pansies when you are at the store and add them to planters out front. In early April review your lawn and make sure it is in good shape. If there are bare spots, have them reseeded. If you have large trees on your property, make sure they are all healthy and any dead limbs are removed.
This is also a great time to make sure your gutters are clean – gutters full of leaves suggest a homeowner isn’t up on their maintenance. Also be sure to have your windows cleaned inside and out. With the sun streaming in through the windows, squeaky clean windows are very appealing to a buyer. Take the time to put out your outdoor furniture and any warm weather yard items (such as planters). Be sure patios and porches are well swept. Step back from your home and see whether your paint is in good shape- – if there are areas that are peeling, have the scraped and repainted. Be sure the front door is clean and nicely painted. Remove all seasonal décor (Christmas wreaths and lights). Ask a friend to stop by and do a quick walk-around for any areas that need attention – a fresh eye is always likely to catch those things you have gotten used to and overlook.
The spring market is in full swing! Take advantage of the next few weeks and make sure your home is well-prepared for the strongest market of the year! If I can be of any service answering any of your real estate needs, please feel free to get in touch with me. Real estate is what I do!! Kathe Barge, Call or Text 412.779.6060
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 28, 2018 | Blog, Buyers, Market Trends, Mortgage, Pittsburgh, Sellers, Sewickley
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"]
by Kathe Barge | Feb 15, 2018 | Blog, Buyers, Contracts, Inspections, Market Trends, Pittsburgh
We’ve been watching realtor.com and calling listing agents about new listings. Agents keep asking me if I have a buyer’s agent. Why would I want one?
It ‘s a good idea to recognize exactly what a buyer’s agent is to you – essentially an almost free invaluable resource to you in the buying process. You might think you will save money if you don’t have an agent that needs to be paid, but in reality that’s not how it works. The sellers have signed a listing agreement obligating them to pay a commission to the listing brokerage house of an agreed percentage and that percentage does not get adjusted if a buyer does not have an agent. So there is simply no advantage to not doing your research and choosing your own advocate before you begin the buying process.
In a recent study done by the National Association of Realtors, the #1 benefit all buyers put forth for having a buyer’s agent? A buyer’s agent helps her buyer understand the process of buying a home (74% of millennials found this to be true). Buying a home is a significantly more complex process than you might imagine, and if you have a well-trained agent, she should make it look simple. However, if you don’t buy and sell real estate everyday, there are many traps for the unwary.
The #2 ranked benefit of a buyer’s agent? A buyer’s agent points out unnoticed property faults or failures. A full-time agent is in and out of homes on a daily basis and after years of experience has developed a fine-tuned ability to pick up issues that most buyers would never notice, and will hopefully be able to suggest proposed solutions as well. This is no substitute for a home inspection, of course. Third on the list of benefits? The buyer’s agent negotiated better sales contract terms than the buyers could have negotiated on their own. Again, years of full-time experience coupled with a dedication to staying educated in the profession should hone an agent’s ability to give you excellent negotiation advice.
The #4 ranked benefit? Buyers reported that their buyers’ agents improved their knowledge of search areas. This is particularly helpful when you are looking to move to an area you are not very familiar with. Finally, the 5th ranked benefit of a buyer’s agent is that she can connect you to a better (and hopefully more reputable) list of service providers than you might have access to on your own. All of these benefits can be yours without the fee of the commission – all a buyer pays is the small “broker fee” (which is charged to both buyer and seller) of approximately $325! This is a small price to pay for a long list of benefits and expert advice on what may be your largest investment! My question is, why wouldn’t you want one?
Call me!! I can help! 412.779.6060
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 8, 2018 | Blog, Buyers, Mortgage, Real Estate, Sellers, Sewickley
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
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jan 29, 2018 | Buyers, Listings, Market Trends, Mortgage, Pittsburgh, Sewickley
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"]
by Kathe Barge | Jan 17, 2018 | Buyers, Listings, Market Trends, Sellers, Sewickley
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"]
by Kathe Barge | Dec 26, 2017 | Blog, Buyers, Mortgage, Sellers, Sewickley
Any updated thoughts on the new tax legislation?
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"]
by Kathe Barge | Dec 13, 2017 | Blog, Buyers, Contracts, Sellers, Sewickley
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"]
by Kathe Barge | Nov 15, 2017 | Blog, Buyers, Listings, Mortgage, Real Estate, Sewickley
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"]
by Kathe Barge | Nov 9, 2017 | Blog, Buyers, Market Trends, Real Estate, Sellers
Both our bathrooms have claw-foot tubs which I am thinking of replacing with walk-in showers. What is the value of having a tub in the bathroom in place of a shower or in addition to a shower?
Every home must have at least one bathtub. A prospective buyer might have kids or just like a good soak and many will reject a home if there isn’t a tub available. More often than not, if there is only one tub in a home it is in a kid’s bathroom, and this is most commonly configured as a tub/shower combination. There could be a tub in the master bathroom as well, but only if there is abundant space. If you have to choose between a large, luxurious (spacious) shower in the master or a tub/shower, ditch the tub and go for a pure shower. If there are multiple kids bathrooms, then only one needs to have a tub. Typically, that tub is not a claw foot tub unless it has a shower ring (which is not tremendously appealing). When claw foot tubs remain, they are typically in a bathroom that has plenty of room for both a shower and a tub. Re-glazed, these antique tubs can be the focal point of a remodeled luxury bath.
As far as value goes, value is really only recouped if you remodel the entire bathroom. In other words, if you put in a new shower but leave the old floor tile and old vanity, you really have added no value. If you redo the whole bathroom, you will likely recoup more that what you pay to remodel the bathroom, as long as you shop smartly when doing your remodel and sell your home while the bathroom still feels current (under 15 years). It is also very important to make choices that are classic and stand the test of time if you don’t want your home to feel dated sooner rather than later. I suggest, given the age of your home, that you make classic choices — Carrera marble, white subway tile, and silver-tone fixtures would all be timeless choices appropriate for an historic home.
Of course, I am available to provide on-site advice if that would be helpful to you as you have many options – give me a call – I’m happy to provide my free advice!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Oct 25, 2017 | Blog, Contracts, Inspections, Listings, Market Trends, Real Estate, Sellers
Selling a home can be a trying process. They say forewarned is forearmed. Any annoyances a seller should be expecting?
Below is a short list of many of the “joys” sellers might experience during the listing process. Being aware that these are possibilities will hopefully help you take them in good humor if they happen to you!
- The agent showing your home will miss appointments and not call or show up.
- Appointments will be made and cancelled at the last minute.
- Some showings will last about five minutes and some will last 3 hours.
- There will be a day when I call you and say someone wants to see your house, and you are going to ask me when. And I will say: “Look out your windows, they are sitting outside now”!
- Agents are going to knock on your door or even drive by, see you in the yard and ask if can they see you house.
- Agents showing your home will forget to turn lights off.
- Agents showing your home will let your pets out (best to remove them from your home for showings) or your neighbor’s pet in.
- Agents will provide unhelpful feedback – buyers buy homes when they attach emotionally to a home and when they don’t, their feedback is often nonsensical.
- Agents will not provide any feedback – incredibly annoying, I know.
- The agent on the sign will be in witness protection and not return any phone calls.
- Expect lowball offers (at least it is a starting point).
- Things will come up on the inspection that you had no idea were wrong with your home and you will be sure the inspector made a mistake.
- The buyer will make ridiculous inspection requests.
- The buyer will ask to bring in contractors for estimates for work they want to do after the closing at the seemingly most inconvenient times.
- The property might not appraise at what you are selling it for.
- The closing date on the contract may change.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Oct 18, 2017 | Blog, Buyers, Contracts, Inspections, Real Estate
Why should we use a buyers agent when buying a new home? We thought it was better to just call the listing agent.
It’s always a better idea to use a buyer’s agent who is focused on your home search rather than calling each listing agent of every property that you might be interested in. First and foremost, a buyers agent is essentially no additional fee to you. Buyers do pay a very small “broker fee” (at Howard Hanna, that fee is comparatively quite low, at $325), but the commissions are paid by the seller. So there is no financial reason for you not to have Buyer representation!
Having a buyer’s agent offers a long list of advantages to you. The agent will get to know your personal needs and wishes and be able to screen houses more effectively as well as target houses that might be a great match. The agent will be able to compare the various homes that you see, helping you to objectively address the positives and negatives of each home as they relate to each to other. You should expect a buyer’s agent to be able to do a detailed analysis of the comparable sales for you so that you can feel good about any offers you are making. Your buyers agent will also be able to guide you through the inspection process, which can be very tricky these days with home inspectors being unusually critical of the homes they are inspecting.
Does this mean that you should sign a buyer agency agreement with the first agent you meet? Absolutely not! The internet offers a wealth of information about Realtors these days. Before choosing a buyer’s agent, check their online presence. Look at their qualifications – do they have certifications or other professional credentials? Check out their online reviews on websites such as Zillow, Trulia, realtor.com, yelp and Facebook. Do they have a personal website where you can learn further information about their business and services to you? Feel free to request personal interviews of past clients if that is helpful to you. Once you feel you have chosen the best match for your needs, engage that Realtor as your buyer’s agent and move forward, knowing that you are in good hands!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Oct 12, 2017 | Blog, Home Staging, Listings, Market Trends, Pittsburgh, Real Estate, Sellers
Fall is upon us! Any tips for presenting our home well in the fall market?
Fall can be such a wonderful season here in Pittsburgh, but sometimes sellers forget that they need to take a fresh look at their home to make sure it is still presenting at its best as summer ends. Start with your yard. It’s the first thing a buyer sees! Make sure you have trimmed away all of Summer’s dead blooms and that your garden beds are looking ready for their long winter’s nap. Put down fall fertilizer so your yard looks great again this coming spring! Be sure to give your lawn its final mow, and as we move into fall, keep your leaves raked!
Don’t forget to keep your gutters clean – if your home is actively on the market, you may need to do it more than once – you don’t want a buyer to see clogged gutters and mini-trees emerging! Give porches and patios a final thorough cleaning. If your windows aren’t really clean, get that done too – as we go into our grayer time of the year, its really important to get as much sunshine inside as possible!
Inside, check all of your lightbulbs and make sure they are all at the maximum possible wattage and in good working order. As days grow shorter, it will be important for your home to be bright and cheerful inside. Clean out your garage. You will need it once snow flies, and you won’t want to be out there in 30 degree weather! Be sure that if you choose seasonal decorations like mums or wreaths, that you remember to rotate them as we move through the season so that you reflect the current season!
And of course, if you know now that you want to list in the coming Spring season, which kicks off in January, give me a call now so we can get photography done while there are still leaves on the trees!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Sep 21, 2017 | Blog, Buyers, Contracts, Inspections, Listings, Real Estate, Sellers
We just completed a home inspection and submitted our requests to the seller. They did not respond well and felt we were too comprehensive in our list of requests, although they were all items the home inspector pointed out as issues in his report? What are we to expect?
The home inspection process is as individualized as the people buying the homes. Some sellers are so eager to sell their homes that they will gladly cede to your every demand. Some homes are so well priced and so well received by the market that the sellers are willing to do virtually nothing with respect to inspection requests. How your sellers respond will likely depend on how badly they want to sell to you, balanced with what they think their chances are of a sale to another buyer in the near future. But there are a few guidelines to keep in mind when evaluating what to ask for on the home inspection and how to weigh the seller’s response.
Anything the seller has called out on the disclosure should not be part of your inspection requests – you should have taken these conditions into account when you were making your offer. For example, if the seller has disclosed that the furnace is at the end of its useful life, it is not appropriate to ask for the seller to pay for a new furnace.
If the condition was easily observed when you visited the home, you should also have taken it into account when making your offer and not be raising the issue now. For example, if you noted that the front sidewalk was badly cracked when you saw the home, that should have been addressed in your offer and you should not try to renegotiate price based on that condition after the inspection.
Finally, you should use some materiality standard for your requests. Some buyers use a health and safety standard and focus on items that could put their health or safety in danger, such as electrical or radon problems. Some use a major defects threshold and focus on items that are expensive to repair. But as a general rule, it’s a good idea to let small items and maintenance items go, such as caulking bathtubs, tightening loose toilets and installing handrails on basement stairs (which no one except the home inspector cares about anyhow!) If you focus on what really matters, you are more likely to establish a positive dialog with your seller and end up with a positive result.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Sep 14, 2017 | Blog, Buyers, Listings, Real Estate, Sellers, Sewickley
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.
by Kathe Barge | Sep 7, 2017 | Blog, Buyers, Contracts, Mortgage, Real Estate
I have a friend who has a mortgage business in another state and he tells me he can handle our mortgage here in Pittsburgh. Thoughts?
It is incredibly tempting to take friends up on offers like this one because we hope when working with a friend we might get a better deal. However, when it comes to mortgages, this is not a good idea! My best advice is to ask your Realtor for several recommendations of local lenders and shop rates and fees. Chances are you will find an equally competitive rate here. Why do I recommend local lenders so enthusiastically?
There are many facets of our real estate contracts that non-local lenders may not be aware of and that may cause a snag in your deal. For example, our contracts declare time is of the essence, so your deadlines are exactly as written in the agreement – there are no automatic extensions as there are in many states. If your lender misses your mortgage commitment date because he doesn’t realize this, the seller could terminate your deal and you could lose your dream house.
Non-local lenders also often do not understand the transfer costs of our area and may mis-quote your loan fees. For example, our transfer taxes vary from borough to borough and are reasonably significant. If an unaware non-local lender does not include the right figures up-front, he might qualify you for more than you can afford, which could cause problems later when your home gets to underwriting and you suddenly find out that you actually don’t qualify!
Local lenders are also far more likely to be vested in the success of your transaction. They probably do a fair amount of business with your Realtor and will go the extra mile because they want to keep referrals from your agent coming. Take advantage of this fact – you are most likely to get the best rates and service from lenders right here in Pittsburgh who are vying for your Realtor’s future referrals and want to make you happy every step of the way!
[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.
by Kathe Barge | Aug 24, 2017 | Blog, Buyers, Listings, Market Trends, Real Estate
We have been sitting on the sidelines for a while now waiting for a home that meets our wish list to come on the market – what’s coming this fall?
You might be surprised to find out, you are one of dozens of prospective buyers sitting on the sidelines waiting for their ideal home to come on the market. USA Today recently reported (as shared on my Facebook business page, Kathe Barge Howard Hanna Sewickley) that we are nationally at a 20 year low in available housing inventory. What is going on you might ask?
USA Today reports that the Baby Boomers are to blame! Seventy-eight percent of Boomers own their own homes, and 85% of them have no intentions to move within the next year. This is tying up a significant portion of potentially available housing inventory. Why aren’t Boomers moving? Stated reasons range from being happy where they live and not wanting to uproot their lives, to having inadequate choices in empty nester inventory to escalating prices that make scale down homes more and more expensive. Boomers are reportedly less interested in destinations like Florida and Arizona these days and are choosing to stay in the homes and communities where their family and friends are.
In Sewickley, we have very few opportunities for scale down housing, and so Boomers are remaining in their homes. As a result, our inventory continues to dwindle and there are very few new introductions. There will likely be a few relocations as we move into the spring market, but with the low inventory and huge backlog of buyers, I expect pricing will be high and bidding wars probable. To be successful in this housing market, if you define success as actually getting a home and moving, you are going to have to accept a few key premises. First, you need to reevaluate your wish list and see what compromises you are willing to make. We still have many nice homes on the market – they may not be a perfect match for you, but could you make one work? You are more likely to receive a discount on a home that has been on the market. Second, if you decide to wait and a home comes on the market that is a good fit for you, be prepared to act fast and bid high. Complete the preapproval process now so that your offer is as strong as possible.
Our market is a steady one and I do expect we will see some new introductions as we move into fall, but your best recipe for success is one that includes reevaluation of the current inventory, compromise, fast action and generous, well crafted offers.
[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.
by Kathe Barge | Aug 10, 2017 | Blog, Buyers, Listings, Market Trends, Marketing, Real Estate, Sellers, Sewickley
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.
[contact-form-7 id="115501" title="Contact Kathe 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.
by Kathe Barge | Jul 27, 2017 | Blog, Buyers, Home Staging, Inspections, Listings, Market Trends, Property Updates, Real Estate, Sellers
In your May 11th column, you also mentioned that updates may not affect a home’s value but may affect the chances of getting it sold. Can you clarify what you mean by that?
Upon reflection, that statement, which I quoted for a real estate website, may be a little broad. I meet with many sellers who are simply in shock with what this market requires to generate a sale. In many cases, its not a case of the updates being required to increase the chances of a home selling quickly – they are required for a home to draw an offer at all. Do the updates increase the value of the home? Technically yes, because without them the home is almost unsalable, except at perhaps the deepest of discounts.
This era of home buyers simply do not want to do any work at all. Perhaps my generation of parents did it all wrong when we handed our children life on a silver platter! They watch too much HGTV and expect to see that when they walk into a home. I have been on my soapbox many times before about many of these topics, stressing the importance of addressing them, but not from the perspective that updates are important to even generate an offer. Buyers really don’t want your wallpaper no matter how stylish. Nor do they want your colored carpets or shiny brass, to name a few other deal killers. They aren’t going to do the “few projects” you left behind for them – they are just going to move on to another home.
A recent case in point is a listing I sold after just over a month on the market. It had been on the market previously for two years with no offers. It is a fantastic home in a great location on a great piece of property, but it just didn’t sell. The sellers removed wallpaper and draperies, painted the interior in my favorite ‘greige‘, updated plumbing and lighting to a silver palate and were rewarded for their efforts with a quick offer. As frustrating and costly as this sounds, unless you remodeled your home within the past ten years, this is the price you may have to pay to get a home sold in today’s competitive market, unless you are willing to price it at, or accept, a deeply discounted price.
[contact-form-7 id="115501" title="Contact Kathe 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.
by Kathe Barge | Jul 20, 2017 | Blog, Buyers, Contracts, Home Staging, Listings, Market Trends, Mortgage, Real Estate, Sellers
In your May 11th article, your first item you noted about real estate is that a home is worth what a buyer is willing to pay. I thought a home is worth what it appraises for?”
In my May 11th article (available to those of you who missed it on my website), I did list 12 important things everyone should know about real estate, the first being that yes, a home is only worth what a buyer is willing to pay.
Appraisals are typically done in conjunction with a mortgage application, although they are sometimes done as part of an estate administration or by a homeowner who wants to get a better sense of what a home is worth. Many appraisers are not experts in the neighborhood they are trying to appraise a home in and miss the block by block nuances that greatly affect value. However, even if they are well versed in a particular area, they may not have been in every home and may not understand the special circumstances surrounding why one buyer may have paid a premium and another buyer may have purchased at a discount. Appraisers often don’t have their finger on the pulse of buyer expectations – unlike Realtors, they do not interact directly with buyers and don’t have the opportunity to hear them complain about wallpaper, colored carpets, dated lighting and outdated kitchens and baths. They don’t see firsthand how eager buyers are to purchase newly remodeled homes and the premiums they will deliver for those homes and they aren’t privy to the conversations Realtors have trying to convince a buyer to take on a project. So sometimes they are just too high and that price will not be achievable absent a sizable remodel.
It is also irrelevant how much money a seller has invested in a home. It is important to keep in mind unless renovations were made in conjunction with a home-staging professional in an effort to sell your home, improvements were made for the homeowner’s enjoyment and may not carry any value for a home buyer.
In the end, Buyers in 2017 America are quite savvy. Most view all inventory for many months before choosing a home. They probably know better than a home seller how a home stacks up against what has recently sold. If they don’t, it is all readily available online. So in the end, the price is determined by how convinced a buyer is that the value is in the home.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jul 13, 2017 | Blog, Buyers, Contracts, Inspections, Listings, Market Trends, Real Estate, Sellers, Sellers-Contracts, Sewickley
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.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jul 6, 2017 | Blog, Buyers, Listings, Marketing, Pittsburgh, Real Estate, Sewickley
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?
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jun 8, 2017 | Blog, Buyers, Listings, Market Trends, Mortgage, Real Estate, Sewickley
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!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jun 1, 2017 | Blog, Buyers, Contracts, Listings, Market Trends, Mortgage, Real Estate
It’s true! Bidding wars are back in some neighborhoods! The extremely tight inventory, coupled with the influx of spring buyers has made the competition sometimes fierce for well-conditioned homes in great neighborhoods. The first thing you should do to set yourself up for success in a hot market is to get a pre-approval from a reputable local lender.
The pre-approval process is more than a pre-qualification. It involves submitting all documentation to your lender long before you actually make an offer. This includes tax returns, bank statements… The lender will underwrite your loan subject only to the appraisal of your new home once you find it. This makes you an incredibly strong buyer – you could choose to remove the mortgage contingency altogether and insert only an appraisal contingency, but even short of that, knowing that you have taken the time to get fully approved will impress the seller and give you some advantage over other buyers.
Pre-approval (as opposed to pre-qualification) is also important so that you don’t find out 75% of the way through the home buying process that you cant afford the home. Sometimes lenders miss some of the critical pieces of your puzzle during the pre-qualification process that an underwriter will pick up. For example, it is possible that your gross income is high, and that you reported that figure to the lender, but when the underwriter reviews your tax return they see that your AGI (adjusted gross income) is lower due to alimony. Child support payments will also lower the amount of the loan you can qualify for. You may have co-signed student loans or car loans for a child, or a mortgage for a family member. Any debt you have co-signed for, whether it is an asset you use personally or not, will lower the loan size you can qualify for. And of course, pending actions for divorce, as well as dings on your credit you were unaware of (such as doctors bills you forgot to pay) will affect your ability to borrow. Better to take the time to figure this out up front and target homes you know you can afford, rather than being tempted by those out of your price range!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 11, 2017 | Blog, Buyers, Listings, Marketing, Real Estate, Sellers
You give a lot of advice each week – any way to sum it up quickly for those of us who need the Reader’s Digest version?
I recently came across a posting on one of my favorite Facebook pages that I shared on my Facebook business page (Kathe Barge Howard Hanna Sewickley) that I think does an outstanding job doing just that for sellers! Quoted from The Lighter Side of Real Estate, the following are words to live by if you are selling a home, presented in a brief, easily remembered format:
“Twelve Things You Should Know About Real Estate:
- A Home is Worth What a Buyer is Willing to Pay
- Updates May Not Increase the Value, But They Increase the Chances of Getting it Sold
- Cleanliness is Godliness
- Curb Appeal is the First (and Strongest) Impression
- Pet Odor and Clutter Leave the Longest Lasting Impressions
- Neutral Paint and Décor Will Always Appeal to the Masses
- Cheap Fixes or Updates Will Result in a Cheap (Low) Offer
- Everything is Negotiable
- Time is of the Essence
- Location Location Location
- Buyers Notice Things They Want to Change Before They Notice Any Updates
- When Priced Right It Will Sell”
Keep these principles in mind and apply them when selling your home and its sure to be a success!
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.
You give a lot of advice each week – any way to sum it up quickly for those of us who need the Reader’s Digest version?
I recently came across a posting on one of my favorite Facebook pages that I shared on my Facebook business page (Kathe Barge Howard Hanna Sewickley) that I think does an outstanding job doing just that for sellers! Quoted from The Lighter Side of Real Estate, the following are words to live by if you are selling a home, presented in a brief, easily remembered format:
“Twelve Things You Should Know About Real Estate:
- A Home is Worth What a Buyer is Willing to Pay
- Updates May Not Increase the Value, But They Increase the Chances of Getting it Sold
- Cleanliness is Godliness
- Curb Appeal is the First (and Strongest) Impression
- Pet Odor and Clutter Leave the Longest Lasting Impressions
- Neutral Paint and Décor Will Always Appeal to the Masses
- Cheap Fixes or Updates Will Result in a Cheap (Low) Offer
- Everything is Negotiable
- Time is of the Essence
- Location Location Location
- Buyers Notice Things They Want to Change Before They Notice Any Updates
- When Priced Right It Will Sell”
Keep these principles in mind and apply them when selling your home and its sure to be a success!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | May 4, 2017 | Blog, Buyers, Contracts, Listings, Market Trends, Real Estate
We have found a new home that we want to buy, but the seller can’t close until late this year. Should we put our current home on the market now or wait until we get closer to the closing date for our new home?
We are currently experiencing an exceptionally strong spring market! I have not seen a better time to sell in recent years! So now would be an excellent time to list your home for sale. However, if you do, you need to expect that your buyer is unlikely to wait for many months to close. Rate locks are generally only good for 60 days, so any closing beyond that exposes the buyer to the possibility of interest rate hikes. Additionally, this time of year most buyers are looking to occupy their new homes in time for school to start in the fall. So if you list your home now, you need to be prepared for the possibility of an interim move to a short-term rental. You may view this as the safest option because if your home does sell quickly requiring a move to an interim rental, you will at least know that you will not be stuck carrying two homes at one time!
Your other option is to wait until closer to the closing on your new home to put your current home on the market. This would certainly be the more convenient option – you would not have to find an interim rental property and store your personal effects. However, while homes do sell in the fall market, it does not have nearly the momentum that the spring market has. If you choose to wait and list your home in the fall, it is possible that you will need to carry two houses until the spring 2018 market begins. I also don’t have a crystal ball to predict whether the spring 2018 market will have the same momentum that the current market has.
In the end your decision will need to be based on which risk factor concerns you more. Would you be more unhappy if you had to spend interim months in a rental property because a buyer this spring needs your house now, or would you be more unhappy if you had to carry the cost of owning two homes for several months? The answer to this question should guide you as to when is the appropriate time to list your home for sale.
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Apr 26, 2017 | Blog, Listings, Market Trends, Real Estate, Sellers
Do you recommend that seller’s work with “lowball” offers that they receive?
The quick answer is YES! Sellers should try to work with any offer that they receive. However, it’s important to layer filters onto the offer to determine how you should respond.
If your home has been on the market for more than a few months and hasn’t sold, there is a possibility that it is overpriced. Sometimes a home is just very unique – in its location or its floorplan, for example. This may extend its marketing time as the pool of potential buyers will be smaller. But if your home offers more of the features that buyers today are seeking and it hasn’t sold, chances are your pricing may be too aggressive. This may be a tough pill to swallow – the market right price may be below what you had hoped to sell your home for, below what you “need” to buy your next home or below what you have invested in your home. As unappealing as this may sound, the market doesn’t care what a seller wants, needs or has invested. The only relevant inquiry is what has sold in the recent past and how your home compares to those homes.
So if your home is new to the market and you get a lowball offer, it’s not unreasonable to expect that buyer to increase their price. But if it’s been on the market a while, the price adjustments may be weighted more heavily on the seller’s end. In any event, it’s important to counter every offer that you receive. Sometimes you may want to just reduce a small amount in your counter, providing comps and analysis that clearly substantiate your value. If you provide this information to the buyer, there is a possibility that your data will persuade them to see the value in the home. If you have no data to justify your price and its just what you “hope” to get or “need” to get, you may want to be more generous with your counter offer and hope to meet the buyer somewhere in the middle. People list their homes when they want to sell them and the first step in that process is to start the conversation with every buyer, no matter how offensive their offer seems at first – frequently sellers are rewarded for their patience and responsiveness with a sold home!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 9, 2017 | Blog, Buyers, Listings, Market Trends, Pittsburgh, Real Estate, Sewickley, Sewickley Herald
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!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Feb 2, 2017 | Blog, Buyers, Mortgage, Real Estate, Sewickley, Sewickley Herald
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!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Jan 26, 2017 | Blog, Buyers, Inspections, Listings, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
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!
[contact-form-7 id="115311" title="Get More Information Form"]
by Kathe Barge | Dec 15, 2016 | Blog, Buyers, Inspections, Mortgage, Real Estate, Sewickley Herald
We would like to buy a new home in the new year. How much money do we need to have on hand?
The new year will soon be upon us, and with a new year comes a new opportunity for putting your housing dreams into motion. How much cash do you need to be able to close on a home
First, you must have your down payment. You will receive the best lending rates if you have at least 25% down. 20% down was the normal minimum years ago, and that is still not a bad idea if you want to avoid paying PMI (private mortgage insurance). A 10% down payment is also a possibility – you will likely pay an upfront PMI fee, however, for the privilege of putting less down. You can have this PMI waived if you will pay a higher monthly rate- generally .25% more than the rate would have otherwise been. Five percent down is also possible if your loan amount is under $417,000. And of course, with an FHA loan, you only need to put 3.5% down, although the PMI fees are fairly significant.
In addition to your down payment, and PMI if applicable, you should also budget for the following out-of-pocket expenses when you buy a home:
- Inspection fees – you will pay approximately $400 for a general home inspection, $55 for a pest inspection and $135 for a radon inspection. If you add a mold inspection, plan for approximately $225 more.
- Appraisal – approximately $350 charged by your lender to have the how appraised to be sure what you have agreed to pay for the home is in line with the market
- Application fees – this will vary by lender and can be negotiated upfront – plan on approximately $750.
- Transfer Taxes – in Pennsylvania, each party pays a 1% transfer tax (on the sales price of the home)
- Title Insurance – a fee regulated by the state, it is a percentage of the purchase price that varies depending on the price of a home. For a 100,000 home, the title insurance is almost 1% of the purchase price. At $1,000,000, the title insurance is slightly more than one half of one percent.
- Finally, allow approximately $1000 for other miscellaneous fees (title endorsements, recording, settlement, survey)
The best first step toward buying your new home in the new year is to talk to a lender today and begin the pre-approval process. Once you know how much you can afford to buy, you will be better able to calculate how much you need to close, and to align your new year’s savings goals accordingly!
by Kathe Barge | Nov 3, 2016 | Blog, Buyers, Market Trends, Real Estate, Sewickley, Sewickley Herald
Dear Kathe,
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!
by Kathe Barge | Oct 6, 2016 | Blog, Buyers, Inspections, Listings, Market Trends, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
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.
by Kathe Barge | Sep 22, 2016 | Blog, Buyers, Pittsburgh, Real Estate, Sewickley, Sewickley Herald
Dear Kathe,
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!
