by Kathe Barge | Apr 19, 2022 | Buyers, Buying Conditions, Helpful Tips, Interest Rates, Investment Properties, Listings, Market Trends, Property Value, Real Estate, Sellers, Selling Conditions
It seems that high end home sales continue to lag as compared to the rest of the market. Thoughts?
Our high-end market in the Quaker Valley School District is moving more slowly than the rest of the market, and this is particularly apparent when homes under $1 million are selling fast and at premium prices. Speculation abounds as to why that is the case. Many attribute that to the fact that our tax system was restructured several years ago to allow for a larger standard deduction and lower marginal rates but at the cost of limiting the deduction for property and income taxes to a combined total of $10,000. Our property taxes are high in Western PA as compared to many parts of the country and that will impact expensive homes, with the possibility of the highest taxes, the most.
Buyers may need a general mindset adjustment. As a whole, our income taxes in PA are lower than the majority of states. Our earned income tax here in Sewickley is only 1%, compared to 3% in the city of Pittsburgh. We do not have sales tax on clothes or food as many states do. So while our property taxes may be on the high side, we are in a far better position overall than many residents of metropolitan areas with similar advantages to Pittsburgh. Property taxes are just a cost of living, and if your bucket list includes the amenities of a higher-end home, the taxes are what they are. The sooner our marketplace accepts this reality, the sooner our higher end homes will start selling again!
However, other high-end Pittsburgh markets are selling more readily than ours and while this article is not a political commentary, the reason most often cited by high-end buyers choosing against Quaker Valley is the school situation. No one likes controversy – why move into it if you don’t have to? If we can make unified forward progress, that may buoy our high-end market.
In the meantime, our middle and lower end market segments are moving fast and often with many offers. Homes in these segments that are priced appropriately for condition and amenities are often selling with multiple offers, and in a very short amount of time. These market segments are accelerating quickly in their pricing. Waiting for the home to show up on your Zillow search is likely going to be too late. If a move is something you’ve been considering, give me a call and we can strategize on how you can best meet your needs in this complex market we find ourselves in! 412.779.6060
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by Kathe Barge | Oct 20, 2020 | Blog, Buyers, Buying Conditions, For Sale By Owner, Listings, Market Trends, Marketing, Pittsburgh, Property Value, Real Estate, Schools, Sellers, Selling Conditions, Sewickley
Do you think living in a top ten school district adds value to our homes?
Absolutely! There is no doubt in my mind that living in the Quaker Valley School District, ranked in the top ten in Western Pennsylvania, adds both value and sale-ability to our homes. We are fortunate to live in a district with well state-of-the-art elementary and middle schools and a hard-working board that continue to work to keep the caliber of our schools at a very high level.
How do these impressive rankings translate into more money for you? Families moving into Pittsburgh have been a significant force behind our home sales for decades. Buyers with children almost universally start their home search considering school districts. Our school district not only offers top numbers, but it is small and can afford more personal interactions between families and faculty. This personal touch makes Quaker Valley both unique and a highly sought-after school district for people moving to Pittsburgh.
Relocation buyers are not our only customers. We see dozens of home sales each year to families living in other Pittsburgh communities where the school districts are not as acclaimed looking to improve the educational opportunities for their children. Pittsburgh neighborhoods that seemed fun and exciting to DINKS give way to sensible communities with outstanding schools like Quaker Valley once kids come along.
And yet we are a small community, with limited housing options. As our educational performance continues to shine, living in Quaker Valley continues to be a strong draw for buyers coming from both near and far, and yet we only have so many places to house these buyers. The increased demand for housing in the District has continued to push our housing prices up, and that has become particularly evident in some of our more affordable price brackets, which are feeling less affordable each year.
So yes, absolutely – living in such a highly acclaimed school district is a very important component of housing value and driving more and more families to explore the possibility of living here. Despite our new construction, the very limited nature of our housing inventory, when combined with the strong demand resulting from the excellent reputation our school district has maintained, is continuing to put strong upward pressure on our housing values.
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by Kathe Barge | Jun 23, 2020 | Blog, Buyers, Mortgage
With all that is going on in the world, why should we consider a move now?
I know it might seem counter-intuitive, but local market indicators suggest there has never been a better time to be in the market for a move. Why buy now? Here are my top reasons!
- Interest rates are unbelievably low! Fixed 30 year loans under 3%? Yes! You can buy more and spend less!
- We have some very nice homes available to purchase – its been a long time since I have seen so many nice choices.
- Some buyers are concerned about economic uncertainty right now and sitting on the fence. However, the economic factors associated with the housing crash in 2008 are not present now, so while the economy may slow down, we are not anticipating housing prices to drop. Take advantage of other buyers’ hesitation and buy now before you find yourself in a multi-party bidding war.
- Housing prices have continued to rise in our local markets despite the pandemic and economic uncertainty. If you are sitting on the sidelines, there is a good chance you will pay more at a later date!
I have outstanding opportunities across all price brackets. Why buy now? Check out more reasons below!
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by Kathe Barge | Apr 16, 2019 | Blog, Buyers, Pittsburgh, Sellers, Sewickley
What is going on with the high-end market in Sewickley? Why don’t there seem to be many high-end sales?
Our high-end market has been slower than normal for over a year now. Speculation abounds as to why that is the case, but it doesn’t seem that we are alone – sales of higher end homes in many pockets of this country have slowed. Many attribute that to the fact that our tax system was restructured to allow for a larger standard deduction and lower marginal rates but at the cost of limiting the deduction for property and income taxes to a combined total of $10,000. For high property tax jurisdictions such as our own, many commentators believe this has caused a slow-down in high-tax (i.e., high priced) home sales. I have held out hope that when people filed their taxes this past Monday, maybe they would discover that they are better off under the new system despite the deduction limitation and we would see the property tax fear fade into the background. I must admit that even as a former tax lawyer I have found the new forms a bit confusing, so I am really hoping we will see some favorable spin coming from tax preparers this week.
We may however need a general mindset adjustment. As a whole, our income taxes in PA are lower than the majority of states. Our earned income tax here in Sewickley is only 1%, compared to 3% in the city of Pittsburgh. We do not have sales tax on clothes or food as many states do. So while our property taxes may be on the high side, we are in a far better position overall than many residents of metropolitan areas with similar advantages to Pittsburgh. Property taxes are just a cost of living, and if your bucket list includes the amenities of a higher-end home, the taxes are what they are. The sooner our marketplace accepts this reality, the sooner our higher end homes will start selling again!
In the meantime, our middle and lower end market segments are moving fast and often with many offers. Homes in these segments that are priced appropriately for condition and amenities are often selling with multiple offers, and in a very short amount of time. These market segments are accelerating quickly in their pricing. Waiting for the home to show up on your Zillow search is likely going to be too late. If a move is something you’ve been considering, give me a call and we can strategize on how you can best meet your needs in this complex market we find ourselves in! 412.779.6060
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by Kathe Barge | Mar 4, 2019 | Blog, Buyers, Market Trends, Real Estate, Sellers
I am wondering if you could give an update on how the spring market is looking so far?
The spring market is off to an incredibly strong start, from a seller’s perspective, IF a home is listed under $1million. New introductions are selling, often with multiple bids, and sometimes in less than 24 hours. Homes that have been on the market for many months are also selling, and even they sometimes have more than one offer! It is exactly what we all expected – a vibrant market, and its only early March!
Buyers are understandably frustrated! While houses are coming on the market, the lines of buyers in the more affordable price ranges would look like the black Friday lines at Best Buy when they are selling TVs for $100! New introductions are selling fast and for more than a simple analysis of the comps would suggest is a market price. But if you have been waiting for 6-12 months, this may be your best chance at a home that could work for you, so you may have to pay more to beat out other buyers and get in the door!
How do you win in a market like this? Buyers, you MUST be pre-approved for your financing. You need to know exactly what you can afford and be able to prove that, in writing, to the sellers you are trying to convince to pick you. Yes, there is some up-front work involved, but this is what it takes to win in today’s market! You should also have chosen and signed on with a buyer’s agent – waiting for homes to hit Zillow or to have an open house is not an effective way to win in a hot market. You need a full-time agent dedicated to getting you home options as soon as they are available. If you really want to win, you also need to spend some time assessing the compromises you are willing to make – 20 years in this business and I can state with confidence that the perfect home is just not out there!
Sellers, we have a huge inventory shortage that has been going on for two market cycles but this is not reflective of the norm in Western PA. The tables will turn at some point back to a buyer’s market. If a move is on your radar screen, now would be the absolute best time to call me to develop a strategy to get your home on the market and give you the best return on its sale!
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by Kathe Barge | Dec 5, 2018 | Blog, Buyers, Marketing, Pittsburgh, Real Estate, Sellers
We’re hoping to move in the New Year and are beginning our search online – is there anything we should keep in mind?
The majority of buyers will shop online during their search for a new home, and many will actually begin their search there, like yourselves! The real estate industry has come such a long way in the 20 years since I started in this business. Back in what feels like a different century (perhaps because it was), we used bulky multilist books that were delivered every other week to find homes for our clients. Now you can access the entire nation’s real estate inventory on national websites such as realtor.com in the comfort of your own home!
The internet has made it incredibly easy for buyers to do some preliminary research for a new home. It does have its limitations, however, which is where your expert real estate agent can fill in the gaps.
Online listings, if managed well by the listing agent, will always look amazing. Wide-angle lenses and professional photographers are employed, as well as photo-editing software and virtual staging, to make a home look as attractive as possible online. It’s worth keeping in mind that pictures may lie – be careful not to screen out potential homes just because the photos aren’t fabulous – rely instead on the wisdom of your agent. If she has listened to your feedback and is familiar with the inventory, she will be your best screen for which homes are better than they appear, and which may be worse.
Online listings also don’t give you much of a sense of location. While google earth may help with some of this, until you actually drive by a property, you may not be able to tell physical lot characteristics that may be a positive or a negative to you. Online listings also can do little to convey a sense of neighborhood or community. Again, that is where your real estate professional should be able to fill in the picture for you.
Finally, online listings are only as good as the agent who enters the data – there may be information about the property that is not entered into the MLS, either by agent oversight or by simple lack of space, that might make a home more desirable to you. Information such as camera security systems, water softener and purification systems and high-efficiency mechanicals may have real value to you and is rarely listed online.
Online shopping is a great way to familiarize yourself with the market, but connecting with a Realtor who is an expert in the area of interest to you is your best course of action once your curiosity grows more serious.
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by Kathe Barge | Nov 26, 2018 | Blog, Buyers, Contracts, For Sale By Owner, Mortgage, Real Estate, Sellers
We were approached by someone who is interested in buying our home. The buyer has provided us with an unsigned sales agreement as their offer. They are offering 1.5% of the purchase price as their hand money and have not included proof of funds (it is a cash offer). Are we wasting our time with these buyers?
The very short answer is yes! For starters, to be a valid offer, it must be in writing and signed. Without a signed writing, you have absolutely nothing to bind the buyer should you decide to proceed. What you received is not an offer at all and you should not give it serious consideration until the paperwork is signed by the buyer. If there are no agents involved, the buyer needs to hire an attorney to prepare an offer and you will need to hire your own attorney to review it.
Hand money equal to 1.5% of the offer may or may not be sufficient depending on the individual circumstances. Sometimes that is all a buyer can afford. However, this buyer is supposedly paying cash so there should be no problem with them providing a more substantial deposit. Look for a minimum of 5% in this type of scenario. The hand money is your consolation prize should the buyer decide not to close after all contingencies have been satisfied – if you have moved out, you will need at least that much to compensate you for all of your moving costs.
As far as proof of funds, I would recommend that you not engage in any substantive negotiations until the buyer has proven that they do have the cash available to close. Talk is cheap, but if they really do have the cash, they will have no problem producing copies of statements showing the cash or a letter from their banker that they have the needed funds.
Your questions address just a few of the hundreds of complexities involved in getting a home sold and highlight why its really important to engage a full-time real estate expert when buying or selling a home. Selling your home yourself may sound like a great idea in the abstract but the “for sale by owner” sellers that I have spoken to have regretted not engaging a Realtor to represent them as selling a home is far more complicated than it looks and most ended up feeling like they got the short end of the stick at the end of the day!
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by Kathe Barge | Nov 20, 2018 | Blog, Buyers, Contracts, Market Trends, Mortgage, Real Estate, Sewickley
This time of year we all take the time to give thanks for all of the wonderful things in our lives. I have much to be thankful for. The obvious chart toppers are good health, wonderful family and friends, and a warm home to come home to each day (which I particularly appreciate on these chilly November days!) My gratitude extends much further, however, to all of the people I work with every day that make real estate transactions so seamless for my clients – from the best mortgage brokers and closers to incredible home inspectors and handymen, contractors, electricians, roofers… that I can count on to give their best to my clients. With them by my side (or on speed dial) I have been able to provide the highest level of service to those with whom I work, and for that I am grateful.
My gratitude, however, extends even further – to forces I can’t control. We have been very fortunate to have historically low interest rates for a very long period of time (and even though they have been inching up, they are still comparatively quite low), and a taxing structure that has favored home ownership as an investment. I am always reminded that Uncle Sam, through the mortgage interest deduction, effectively pays a portion of my mortgage every month. Through the system as structured, we are not only able to own homes for less than we could pay to rent them, but at the same time we are building equity which will be there for us when we retire and are seeking that nest egg to purchase our retirement home with.
Are you taking advantage of all that is available to you? It’s hard to imagine that there will ever be a better time to begin or increase the size of your nest egg in real estate. If you’re ready to downsize and cash in your nest egg, it’s an absolutely ideal time – inventory is low, interest rates are still on the historically low side and we have buyers waiting in line for Sewickley homes. The spring market starts in January – the time to sell is now! Enjoy your holiday, and give thanks for all that is wonderful in your life!
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by Kathe Barge | Nov 5, 2018 | Blog, Buyers, Listings, Pittsburgh, Real Estate, Sellers, Sewickley
We need to replace appliances – any recommendations?
When choosing new appliances, my first recommendation is that you choose Energy Star certified appliances for several reasons. First – check with your electric supplier before you shop, but rebates are available from many electric companies (Duquesne Light is one) when you purchase designated Energy Star appliances. Second – you will save money every month on your electric bills. Third – and most important from my perspective – younger buyers tend to be concerned about energy efficiency and often ask for utility bill information on homes they are considering. Energy efficient appliances are a selling point and will enhance the value of your home (don’t forget to point that out when you list!) As more young buyers enter our buying market (and they are buying across all price ranges), this could be an important differentiator for your home.
I still recommend that you choose stainless appliances. While there are many options out there including some pretty interesting colors, I still see buyers responding most favorably to stainless. Sure, they might be harder to care for (you will need a can of stainless polish in your cleaning cupboard), but the look is still quite appealing and “professional.” There is, however, one circumstance when I do not recommend stainless for replacement appliances. If your kitchen has another color appliances (white or black, for example) I do not recommend replacing only one appliance with stainless. If there is one thing buyers uniformly dislike it is mismatched appliances (in color – mixing brands is fine). So if you currently have white appliances and don’t think you will be replacing the other appliances soon, stick with white. Even though white (or black) does not have the same appeal that stainless does, a kitchen with two white (or black) appliances and one stainless is the least appealing of all!
Finally, it is worth noting that it is more the look than the brand that is important to buyers. As much as we all like to think the high end brands are important to people its not what I am seeing on the selling side. If the appliance has a good look, buyers are not stopping to ask what the brand name is! So choose the brand that appeals to you – be it a budget decision or a features decision – and enjoy it while you are still in the home!
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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!
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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
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by Kathe Barge | Aug 7, 2018 | Blog, Home Staging, Inspections, Listings, Market Trends, Real Estate, Sellers
After renovating our 100+ year home inside and out, all that remains is our basement. Our stone foundation is in decent shape. How important is it (or worth it) to clean this space up and how far should we go? Would I get the return on my money?
A basement often reveals more about a home than any other part of your home. It is therefore, more important than you might think that your basement present well. Most of what needs to be done to basements doesn’t need to be very expensive. Your basement should be easy to access. Whether you are staying or selling, excess clutter is not your friend –if you have a damp basement, it will harbor mold. Clean out now while the weather is still nice! Your basement must be dry. If your basement just feels humid, then you must run a dehumidifier 24/7. If you have ever had water seepage in your basement, you will need to solve the problem. The quickest, easiest and most common fix is to make sure your gutters are kept clean, your downspouts are properly diverted at least 3 feet away from your foundation and that when it rains, water does not drain toward your home (in which case you would need to add soil to change the slope around your home). If that doesn’t work, you will need to invest in a professional waterproofing company.
Your basement should be light and bright – adding a few extra bulbs to the ceiling is something easily done inexpensively that will dramatically improve the feel of your basement. A fresh coat of paint on the floor will also help and is cheap to do (use porch floor paint). Glass block windows are a good investment – they are not very expensive and they add extra security and protection against termites and water intrusion to your home (I recommend including a vent block in each window so you still have the ability to circulate some air). Cleaning up old and unused wiring and plumbing is also a good idea if you have a handyman who can do it cheaply for you – it will certainly make inspections go more smoothly.
Getting your basement up to basic safety and code standards will also save you on inspections down the road. You should have a smoke detector near the furnace, any plugs should be GFCI outlets and if your basement connects to the garage, the door connecting them should be a steel door. Some of the more expensive fixes are unlikely to yield much of a return. Some people choose to spray their ceilings black – it’s a fun effect but unless the basement is being finished, it is unlikely to yield dividends. Others choose to parge their walls – this actually makes a sandstone foundation look much better, but unless you can do it yourself, it can be expensive. I do not recommend painting walls with dryloc, however. Paint is food for mold and this might only cause more problems!
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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.
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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!
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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
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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!
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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
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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!
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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!
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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!
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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!
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by Kathe Barge | Jan 10, 2017 | Blog, Inspections, Listings, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
If there was one thing you would advise us to do to our home this year, what would that be?
Whether you are planning to sell your home this year or not, the best thing you can do to your home this year is a home inspection! We all live in our homes but rarely take the time to stop and give them a careful look. Weather beats up the outside of our homes year round. Caulking fails, flashing fails, paint peels and exposes wood to rot. We forget to clean our gutters on a regular basis – gutters and downspouts fill with decaying debris, causing water to back up into our homes and cause mold problems. We forget to have our furnaces serviced and fittings loosen and cause condensate to leak and rust our furnaces. The list goes on and on. Simply living in and not doing a regular check up on your home, you are leaving it open to the possibility of major repair bills later and major depreciation in your investment’s value. A home inspection will give you a to do list of projects to tackle throughout the year to keep your home in great shape and maintain its value!
You may not think about this until you go to sell your home. Some of the wear and tear may be obvious to a buyer, who will typically have checked out every available home, be able to see signs of your “benign neglect,” and pass on yours because of its comparatively negative condition. Even if a buyer doesn’t’ notice at first, there is no doubt that a home inspector will notice! After working hard to get your home sold, you may find yourself in the all too common situation of being presented with a long list of inspection requests that you need to complete in order to hold your deal together, or worse yet, a buyer who backs out of your deal because the house needs “too much work,” leaving you in the position of having to fix everything and start all over again. A homeowner should expect simply keeping a home in acceptable condition will cost them $3,000 – $10,000 a year, depending on the size of the home – some years wil be more if its time for a major project, and some less. If you’re not investing this, chances are someday you will when you are faced with a long list of inspection issues.
The first thing on my household resolution list this new year is a home inspection and I suggest you add it to the top of your list as well. Give me a call if you need the names of reputable local inspectors.
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by Kathe Barge | Nov 23, 2016 | Blog, Home Staging, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
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
by Kathe Barge | Nov 17, 2016 | Blog, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Do you have any thoughts as to how the election will affect our housing market?
That is the million dollar question these days!
The quick answer: in the long run, I don’t expect it will have any effect. Real estate is very local. What happens in one part of the country often has nothing to do with what happens elsewhere. Pittsburgh tends to be a more cautious market. Our prices don’t escalate quickly and they also didn’t plummet after the recession. We have seen a very slow and steady upswing in our prices and I expect that to continue – because it is slow and steady, as Pittsburgh has always been.
Our sales have, however, came to a near standstill in recent weeks. But the elections are over and we have a new President elect – so where does that leave us?
When it comes to the real estate market, it really doesn’t matter who you voted for or what you think of the election results – it is common when there is an anticipated change in leadership for our real estate market to slow down. And so I expect, as has happened in prior leadership change years, that our real estate sales will be very slow from now until after Inauguration Day. Cautious Pittsburghers will be interested to see who is chosen to fill cabinet positions and what plans are laid out for the coming years. Home purchases are a big event in most people’s lives and they will want a greater sense of certainty before they make a big change like a new home. And then I fully expect, as has been the case with other elections, that normalcy will return to our market.
Because I expect the next three months to be slow in real estate sales, I do expect that will lead to a pent up demand and a strong spring market. If you are thinking of selling, now is the perfect time to put together a plan for selling your house this spring. The election is over and you can be certain one thing will not change – I will still be here selling houses for you!
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 27, 2016 | Blog, Home Staging, Listings, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe:
We may move out and leave our home vacant and for sale – is there anything special we should know?
First and most importantly, you must consider your insurance coverage. If you have a loss and you have not notified your insurance company that you have vacated the home, they may deny coverage for your loss. Some companies may not provide coverage for your vacant home and you will need to switch insurers. Some will provide coverage for a limited amount of time, and some will provide coverage as long as you leave your furniture in place. However, most will deny coverage for any loss related to water, so whenever you leave a home vacant for any amount of time, its important to turn the water off at the main. If its winter time, you should consider having a plumber professionally winterize your home.
Second its rarely a good idea to leave a home totally empty. Some homes do show better without the owner’s furniture, but even in those cases its important to leave bathrooms, the kitchen, fireplace mantles… staged so that the home feels loved and inviting to prospective buyers. Be sure to have a few lights on timers – buyers often drive by homes at night and you don’t want yours looking haunted! Of course, there are professional home stagers that can help you with any level of staging, whether its working with your existing furnishings, accessorizing bathrooms and the kitchen, or bringing in new furniture to fill the empty space.
You should have a house keeper who comes monthly to keep the home fresh and bug free and a yard service to keep the yard freshly mown and free of weeds, as well as leaves rank and snow shoveled. Finally, you should be sure to keep the temperature set at a comfortable temperature – in the winter no lower than 60 degrees and preferable 65 degrees.
Leaving a home vacant certainly makes showings easier, but it does require some extra attention to make sure the home does not feel abandoned and remains appealing to prospective buyers!
by Kathe Barge | Oct 21, 2016 | Blog, Contracts, For Sale By Owner, Inspections, Mortgage, Pittsburgh, Real Estate, Sellers, Sellers-Contracts, Sewickley, Sewickley Herald
Dear Kathe:
What assurances are there to a seller that if they enter into a contract to sell their home, it will actually close?
Reaching an agreement on the sale of your home is an important first step to getting your home closed. However, before a seller has any assurance that a home will actually close, several hurdles must be overcome. First, the inspections have to be completed. In most instances, the buyer has the right to terminate a transaction if they learn anything on the inspection that they are uncomfortable with, and in almost every instance, the buyer has the right to terminate if the seller does not agree to make the buyer’s requested repairs. So a seller has no assurances at all that their home will close until the inspection period is complete, which generally takes 21 days.
The same thinking would apply if the Agreement includes an appraisal contingency – until the appraisal is complete (which also takes 21-30 days), there is a risk that the home will fail to appraise and the transaction will not close.
If the buyer has a mortgage contingency, then there is a risk until a “clean” commitment letter is received from the lender that the buyer will not get their loan approved, in which case the transaction will not close. Usually it takes about 45 days from the date of agreement to know with any certainty that the buyer has received a loan commitment.
There is also the rare instance where a buyer never provides the contractually specified deposit money or second deposit money. This is a breach of agreement and if this happens, it’s reasonably unlikely that the buyer will cure that breach and close.
Finally, very rarely there are buyers who complete all of the steps in the process and just refuse to close. In those instances, the seller is often entitled to the deposit money, but that may seem like a small consolation prize when their home is empty and back on the market.
Working with a skilled real estate professional will help you to manage the risks and move toward a successful closing. So while the short answer is that there is never a guarantee until the home actually closes, with proper management of the details the risk to a seller of moving out and leaving behind an empty home can be minimized.
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!
by Kathe Barge | Sep 8, 2016 | Blog, Buyers, Inspections, Listings, Market Trends, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
We want to downsize but are not sure how to go about that process – do we buy our new home first or sell our current one first?
Your question touches on one of the trickiest scenarios in real estate – sell first or buy first? The answer is different depending on an individual’s circumstances. Buying first is usually the best choice – you can take your time finding the perfect next house. And you can move out of your current home before listing it for sale, which will allow you to stage and present the home without clutter and without the hassle of having to tidy up for showings. However, buying first requires a few things. You must qualify to own two homes at once. You must have a down payment for your new home in a savings account, or an existing home equity line in place on your current home that will allow you to pull out the cash you need for a down payment. And you must be okay with the concept that you may be carrying two homes for an undefined amount of time.
If you do not qualify to own two homes at one time, do not have the required down payment for the new home, or are just too nervous about owning two homes for an undefined amount of time, then your only option is to sell first. It’s a good idea before putting your home on the market to get pre-approved for your new home purchase (you want to be sure you qualify before selling yourself out of your existing home) and to start looking online for new home possibilities. When you get an offer, you may need to act quickly. The buyer for your home is unlikely to be able to wait for you to figure out what you are going to do next. If you need to wait to figure that out, you may lose the buyer. Additionally, to purchase a new home, that seller is likely going to expect that you have already moved through inspections on your current home and have a solid deal. Therefore, you will want to agree to a longer closing date on your current home to give you time to get through the inspection negotiations and select a new home. Of course, there is always the option of renting if you cant find the right home!
It is tricky, but with proper strategic guidance it can be accomplished smoothly and successfully.
by Kathe Barge | Sep 1, 2016 | Blog, Contracts, Inspections, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
We have a very old (25 years) furnace.. It is still working well and we don’t have the cash to replace it. We are planning to sell our home next year. What advice do you have?
A 25 year old furnace is a very old furnace, well beyond the useful life expected of such equipment. If a buyer makes an offer on your home and then finds out how old your furnace is, there is a very high likelihood that they will be asking you to buy a new furnace as part of their inspection response. There are a few things you can do to set yourself up for a positive outcome.
First, when you complete your seller disclosure, be sure to write on the document that the furnace is past the end of its useful life and may need to be replaced soon. Price your home accordingly and be sure that your agent highlights to buyers agents that you have priced your home at a lower price point because of its older mechanicals. This will prevent the buyer from expecting you to buy them a new furnace – they should take the age of the furnace into account when making their offer.
Second, put a home warranty on your home when you list it. This will provide coverage to you should the furnace break while you own the home and will give the buyer 12 months of coverage should anything happen in their fist year of ownership (and it is renewable).
Finally, consider buying a new furnace. Many contractors are willing to accept payment at closing if you make arrangements for this upfront. With a new furnace you can ask more for your home and are more likely to draw more enthusiasm form the buyers who do see your home.
by Kathe Barge | Aug 25, 2016 | Blog, Buyers, Mortgage, Pittsburgh, Real Estate
Dear Kathe,
We are planning on buying a new home in the coming months? Should we get prequalified or preapproved for a loan? What is the difference?
Its always important to make one of your first steps in buying a home a conversation with a lender. Pre-qualifications are easy – you just pick up the phone and tell the lender your income and amount you have available to put down towards the purchase, they check your credit and issue a preapproval letter. However, this does not hold much clout with the seller.
A preapproval is a much more rigorous process. Basically, you apply for the loan without having found a house. You give the lender all of the documentation they think they need and they out it through the loan underwriters. This is much more time consuming – these days lenders require quite a long list of documentation and explanation to approve a loan. However, this is something you will have to go through anyhow when you are ready to buy, so its not a bad idea to get it done upfront.
The preapproval process will also save you potential heartache later. Sometimes buyers are surprised at what gets in the way of a loan, You may have child support or student loan debt, for example, that you don’t think to mention in the very simple prequalification process that lowers what you can afford on a monthly basis. It would be unfortunate to find your dream home only to go through the loan approval process and find out that you don’t qualify to buy it. Additionally, sellers strongly prefer preapproval letters from buyers because they know lenders have taken a thorough look. A preapproval letter will make your offer much stronger, which could be important if more than one offer is received.
Keep in mind that whether you go through the prequalification or the preapproval process, this does not bind you to a specific lender. Once you have a home under agreement, you are free to shop rates and costs to choose the best lender for you.
by Kathe Barge | Jul 14, 2016 | Blog, Home Staging, Inspections, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
Friends of mine just had the sale of their home fall through because of a home inspection. How can that be prevented?
Yes – sellers should have their home pre-inspected before listing to prevent these kinds of issues! Finding a buyer and agreeing on a purchase price is only one small component of a real estate transaction and yet it is often all that sellers focus on. What happens between then and closing, however, is often the more difficult part of the process. Issues with a home uncovered on an inspection often cost a seller thousands in unexpected repairs and when sometimes even result in a terminated transaction. Inspectors are incredibly thorough (sometimes even finding problems that aren’t problems) and so every home seller should anticipate that the home inspector will find deficiencies and that the buyer will expect correction.
All home sellers should seriously consider having their homes pre-inspected. For as little as $250 – $500 for a basic pre-inspection you will quickly have an insiders view of how a buyer’s inspector will assess your home. Use the inspection as a maintenance check list – find a handyman to come in and fix all of the little things so that they don’t come up again on a buyer’s inspection. If there are larger items that you do not have the ability to repair, such as a roof nearing the end of its useful life, get an estimate or two for the repair or replacement. Note the issue on your disclosure and include a copy of the estimate. This should prevent you from having to credit the buyer for the repair later – buyers are supposed to review the disclosure and take any disclosed items into account in making their offer to you.
Of course, if your inspection is good or just has a lot of little items that a handyman can fix, attach the handyman’s receipt showing the repair provide a copy of the inspection in the house for buyers to see with a note indicating that the home has been pre-inspected and repaired and that they buyer can buy with confidence knowing that they are buying a house in great shape! In a town full of older and aging homes, this will really help your marketing!
So before you list your home – consider a pre-inspection. It will give buyers the confidence they need to move ahead with a purchase, may combat concerns that there are likely problems that would lower their initial offer to you, and will hopefully result in a smooth transaction once you do have your home under agreement.
by Kathe Barge | Jun 9, 2016 | Blog, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
How much more “life” do you think our spring market has left in it?
My crystal ball is out being repaired so I’m afraid my response will need to be a best guess, without it’s reliable aid! In all honesty, what the market is or is not doing in a given week or season is never more than a guess. There are certain norms that we have come to count on: the spring market is stronger than the fall market; homes in the Village sell faster than homes “up the hill,” which often require more patience. But being able to predict how long buyers will continue buying in any season, or how many buyers companies may transfer in, or how many buyers will accept the jobs they are offered and actually come to Pittsburgh, choosing Sewickley as their home base, is impossible to predict with any certainty.
And of course, there is the added uncertainty of what impact a Presidential election has on our market – historically it often slows around election time. It’s been a strong spring market. Buyers have come in waves – there was a huge surge in the March. Sales have been strong in certain brackets and not in others, but that could change on a dime. We saw a small surge “up the hill” but that market has quieted again.
To answer your question, I expect sales to continue along their usual patterns, with a reasonable number of sales in June and some in July as well. We are in our final push of families who need to be in for the school year. I expect that things will slow as they always do in August when most people desert Sewickley! Usually things pick back up again in October. If your home hasn’t sold yet, there is still a chance it could sell this spring, particularly if its well conditioned and priced perfectly. If you are thinking about listing in the future, it’s the perfect time to give me a call and develop a strategic plan for entering the market in the months to come!
by Kathe Barge | Jun 2, 2016 | Blog, Home Staging, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
Why does it seem that almost every home we view online is so neutral? What happened to all the color?
I recently reviewed a portion of a local market in the mid-price ranges and interestingly, almost every home that is under agreement has zero wallpaper and is painted in a neutral color palate (including beiges, grays, greiges and a few other nearly neutral tones). Only one of these homes had any true color on its walls, and that home took nearly a year and several price drops to go under agreement.
Professional home stagers have been counseling for years to remove all wallpaper before putting your home on the market –asking someone to buy a home with wallpaper is as personal as asking them to buy someone else’s wedding dress. No matter how beautiful, it’s rarely done and appeals to very few. Stagers are also quick to recommend neutralizing your paint palate. While there are some warmer neutrals, these days the cooler neutrals like gray and greige are the more popular tones with the buying public. Even having a more colorful child’s room can be a big turnoff.
It seems the selling public has in large part heeded this advice. The homes that are actually selling for the most part have been stripped of their wallpaper and painted in a more current, more neutral paint palate. Absent a compelling reason to choose a home that is not “sale ready” such as a severely discounted price, buyers are far more likely to overlook other “road blocks” to a sale such as a lack of a garage than they are to look past a personalized and colorful decorating scheme.
Does this mean that we must all live in color-free homes? Of course not! Your home should reflect your personality and your personal furnishings undoubtedly tie your color choices together. But it is important when we move toward a customized design scheme to remember that when its time to sell, part of the cost of selling will be repainting these spaces back to a more neutral palate!
by Kathe Barge | May 26, 2016 | Blog, For Sale By Owner, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
We have noticed that several homes have sold lately before they have hit the MLS. Are these “pocket listings” a good way to sell your home?
If a home sells before it hits the MLS, as a “pocket listing” as they are often called, it is highly likely that the seller could have sold the home for significantly more money. The MLS exposes a home to a large number of prospective buyers in a very short amount of time. This widespread exposure is what has the potential to drive the price up for the seller.
A “pocket listing” is more like a secret sale. The agent you are dealing with may have a buyer that is willing to buy your home, but if it’s that easy, chances are you could have received more money if the general public had a chance at your home, and a bidding war could have possibly ensued. If an agent is being straightforward with the seller and discusses the strategies involved with using the market pressure of the MLS to drive in a higher price, it’s a rare seller who will willingly leave money on the table.
So why do we occasionally see these seemingly “secret sales” taking place? Some sellers perceive these pocket listings as a good thing – some don’t want to be hassled with multiple showings, some don’t want the general public to know their home is available for sale. Some agents choose this strategy because they want to keep all of the commission for themselves and that only happens if their own buyer is the successful bidder. If a seller’s goal is to maximize financial return, however, a pocket listing, or accepting an agreement of sale before the home is marketed in the MLS, is rarely the best strategy.
So no, my 17 years experience indicates that a pocket listing is usually not in a seller’s best interests. The highest returns I have seen sellers achieve occur in scenarios when they have used strategies to maximize the excitement within the buying community through proper pricing, excellent conditioning and staging and full MLS exposure.
by Kathe Barge | May 19, 2016 | Blog, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
Why do some homes seem to fly off the market and others take years to sell?
Location. Price. Condition. These are the three most important factors that go into how long a home is on the market. Unique attributes and depth of market segment would be fourth and fifth!
Location is really where it all begins. If your home is in an easy to sell location, the market will be far more tolerant of imperfections in other areas, such as wallpaper or a slightly aggressive price. Location is sometimes relative to a particular buyer – their work address may make one part of town more desirable than another, but generally speaking, buyer excitement about properties rises and falls with address.
Condition is also a very important factor in pricing. Homes that look like they are straight from the pages of a Pottery Barn catalog tend to sell more quickly, and tend to bear higher prices than are sometimes warranted. Those that are dated, with older wallpaper and carpeting, for example, tend to sit – unless, of course, they are in a hot location and deeply discounted, in which case our stable of “flippers” will be ready to buy with cash and close quick for the opportunity at a profit when they renovate.
Price is the easiest of all factors to change. If priced well, even less popular locations and homes that have condition challenges can sell quickly. But if you are trying to match the price of competing sales that were in better locations, better condition or with more amenities, you may find your home takes far longer to sell.
Finally, you may have a home with unique features. A home with no off-street parking can be a challenge to sell at any price point, and it is a matter of being patient and waiting for the right buyer who appreciates the home’s other attributes. You may not have a master bathroom. You may not have any green space in your “yard.” You may have a kitchen barely big enough for one. You may have only two bedrooms. There are many factors that could lengthen time on the market even with perfect condition and price. And of course, depth of the market segment is relevant as well. The higher you go in price, the fewer qualified buyers there will be and the longer your home will take to sell.
by Kathe Barge | May 12, 2016 | Blog, Home Staging, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
Our home is on the market and not sold – where are the buyers this spring? How can we get it sold?
Our spring market has seen some very unusual fluctuations. In some weeks there have been surges, with several houses going under agreement in a week, and other weeks have been quiet. The one million dollar price range has been hot for the first time in a couple of years. The under $300,000 market is also moving very well. If you’re home is in the “middle” then yes, it’s been slower than expected and it’s hard to know why. Speculation has included the election, of course, as well as cutbacks in some oil and gas companies.
Sadly, real estate agents don’t have magic wands that we can wave to make a buyer appear for your home. If it’s been on the market for more than a few weeks it’s likely the local prospects have seen it and determined that its not a fit for them. The most likely buyer is someone currently outside the area, and there is just no predicting when a company is going to relocate someone who might be looking for a home.
Therefore, what you must do is make sure it is the best choice in the price range when a buyer does arrive on the scene. It is important to make sure that it shows perfectly – there is a lot of competition – other sellers who really want a buyer as well. I have written many articles that you can find on my blog at www.kathebarge.com that cover critical topics like de-cluttering and staging, and updating your home. It might be time to bring in a professional stager. It might be time to update paint colors, freshen any dated carpets, update lighting fixtures or baths. Many of these things can be done very cost effectively and could give your home the edge with the next buyer through town.
It may also be time to have a professional appraisal done of your home, both to check to make sure that you have it priced competitively and to give any buyer prospects confidence that the value is there.
In the end, homes with completely updated features and current design palates continue to be the first ones to sell. If that’s not your home and changes aren’t possible, then review price, do the best you can to stage and de-clutter, and then be patient. Buyers can be very fickle – your buyer will come!
by Kathe Barge | May 5, 2016 | Blog, Buyers, Contracts, Pittsburgh, Real Estate, Sewickley, Sewickley Herald
Dear Kathe,
How much negotiation should we expect when buying a home?
Some homes sell for 100% of asking price, even months after they have come on the market. Others sell for 25% off ask. How does a buyer even begin to know how much to expect to “negotiate off” the asking price of a home?
Community practices are a good place to start. In the North Hills, for example, homes typically sell for very close to asking price – if a home is priced too far above what the market will bear, buyers simply sit and wait for sellers to reduce. In Sewickley Heights, on the other hand, large discounts are commonplace.
It’s also important to consider how long a home has been on the market since it’s last price reduction. If it’s been a few months, there may be more room to negotiate.
The time of year and market activity and other important factors. In the spring market, homes are far more likely to yield higher realizations. This has been a very hot spring market – if you are buying this time of year and looking for a large discount, you may be disappointed.
Listing agent pricing styles are also relevant – some agents price to allow for large amounts of negotiation and others prefer to choose a price very close to market value in an effort to engender more enthusiasm about a home –knowing the agent’s average realization will help you determine the best approach to take if you actually want to be successful in your negotiations.
Finally, and most importantly, its important to review and understand the comparable homes, including price per square foot and neighborhood particularities. If a home is priced at or below the price at which comparable homes in similar locations have sold, it’s highly unlikely a deep discount offer will succeed.
Before you determine how much to offer and how you will approach your negotiations, ask yourself how much you want to own the home. If you are dreaming about raising your family there and your goal is to actually own the home, take a realistic look at the above factors before diving too deep with your offer.
by Kathe Barge | Mar 24, 2016 | Blog, Listings, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
How do we decide how to price our home? We know buyers like to negotiate!
Deciding on an asking price is a challenging task, particularly in Sewickley. Interestingly, in Pittsburgh’s North Hills, sellers realize much closer to their asking price, often 97% and higher. However, if a property is overpriced in the North Hills, buyers will simply write the property off – low-ball offers are not made. In Sewickley, however, we have developed the unique tradition of negotiating fairly heavily on the sale of a home. In prior years, the average realization was only 89% and offers often start as low as 80% below asking price. So how is a seller to price a property? If a seller prices 20% over the price a home is likely to sell for to allow for negotiating, it is likely to be seen as “overpriced.” If the seller prices only 2% over likely sales prices, many buyers will factor in the large discounts we often see and bring in inappropriately low offers. Developing a strategy for both pricing and marketing is therefore critical to make sure that a home is both well received and does not sit and get stale on the market.
If you’re facing a deadline due to job relocation or other reasons, then you need to price competitively, even more competitively than expected in today’s market. You’ll need to list at significantly less than your competition. And keep your commission higher as an incentive for a quicker offer. That may seem tough to stomach, but it’s better than continuing your monthly loan payments or the hassle of trying to find tenants to rent your home and of being a landlord for a year or more.
If your home has been listed for some time, but not generating interest, you may need to lower your price. Of the three elements that sell a home – price, location, and condition – price is the one you’ll have the most control over. Review your listing company’s programs and marketing, making sure that you are taking advantage of all of them.
Make sure your home shows better than its competition. Its condition should outshine all of the other listings in its price range. Take time to de-clutter, store off site what you can live without, stage and make sure you attend to all of the little maintenance projects you may have been putting off.
In the end, Sewickley statistics show that if your home does not have an agreement on it within 75 days of the listing date, you will not achieve 90% or more of your original asking price. This makes the original list price a critical decision and also makes it clear that after 75 days, it is absolutely essential to reevaluate your price in light of market feedback and price.
by Kathe Barge | Mar 17, 2016 | Blog, Buyers, Contracts, Inspections, Market Trends, Marketing, Mortgage, Pittsburgh, Real Estate, Sewickley, Sewickley Herald
Continuing from last week:
Dear Kathe,
We’re first time home buyers – where do we begin?
At this point in our journey to your new home, hopefully you have resolved any home inspection issues that you have and your financing is in process.
There are many pieces to the home financing puzzle that you will not see and some that you will. Financing has gotten quite tight now and you will need to be prepared for a high level of documentation required by the lender. They may ask you to document sources of deposits. They may ask you to document other expenses you are responsible for. They may need copies of letters of employment or bonus guarantee letters. Be prepared to respond quickly to any and all requests. While you are addressing these requests, the lender will order an appraisal to confirm value of the home. There is a range of reasonable in which a home may sell – the lender is simply trying to make sure that you are in that range.
Once your loan is approved you begin the long wait until closing. If you had a particularly delayed closing, you will begin to wonder if you are supposed to be doing something else. The next steps happen right before closing. You will set up your insurance coverage on the home with your insurance agent a few weeks in advance. Coverage options vary widely so you will want to work with an insurance agent who will thoroughly review all of your options with you. About a week before, you will need to call the utility companies to move the utility bills to your name. If you forget to do this, the utilities will simply be turned off and it will cost you more to get them turned back on again. For water and sewer, you will need to show up in person to get them connected, so be sure to schedule that in to your work schedule. Finally, the day before closing you will do your walk through to make sure the home is as you expected it would be. If the seller accidentally removed something you thought was to remain or forgot to make a requested repair, now is the time to raise those issues. Once you close, so does your window of opportunity to resolve any last minute concerns with the seller.
On the day of the closing, you will spend about an hour signing many documents and presenting a cashier’s check for any balance you owe above and beyond the mortgage. Once that is completed, you will receive the keys and may begin the happy process of unpacking into your new home!
by Kathe Barge | Mar 10, 2016 | Blog, Buyers, Contracts, Inspections, Market Trends, Marketing, Mortgage, Pittsburgh, Real Estate, Sewickley, Sewickley Herald
Continuing from last week:
Dear Kathe,
We’re first time home buyers – where do we begin?
If you’re following along each week, by now you have been pre-approved for a loan, selected a Buyer’s Agent, looked at and selected a Property, made an offer and are negotiating for your new home!
The process of negotiating for a home is one of give and take. Your Buyer’s Agent should be able to explain negotiating norms in the areas in which you are interested. For example, in our North Hills communities, Sellers price their homes more tightly and they generally sell in the range of 98% of list price. If you bring an offer at 90% of list price, you may not even get a response. In Sewickley, there is often a bit more flexibility. Keep in mind, however, that price isn’t the only concern. Closing date is important – if you can’t get the date you want, you may need to pay for temporary housing and storage of your things. Inclusions are important – if a Seller starts removing things from the home, they are things you may need to spend money to replace and this may affect what you are willing to pay for the home. You must keep all of this in mind as you try to negotiate to a final Agreement to purchase the home.
Once you and the seller reach a deal, both parties sign the Agreement and you are officially “under agreement.” At this point, the contract takes over and specifies exactly what you must do next. Your Buyer’s Agent should lay all of this out for you in easy-to-use timelines. This is absolutely critical – if you miss deadlines, you could lose your deposit money in some scenarios. You generally have 1-2 weeks to apply for a mortgage. Do not delay. The lending process is quite complex these days – there will be a lot of detailed information requested – this will take you time to compile.
At the exact same time that you are applying for your mortgage, you will also be inspecting your new home (yes, it will be very busy for a few weeks). More on inspections next week…
