by Kathe Barge | Aug 28, 2023 | Buyers, Buying Conditions, Helpful Tips, Interest Rates, Investment Properties, Listings, Market Trends, Mortgage, Property Value, Real Estate, Schools, Security
The high interest rates are discouraging to us and we are not sure we want to purchase – any thoughts?
The decision to buy a house, whether a first home or a new home, is one of the most significant financial choices many individuals will make in their lives. While rising interest rates may seem like a deterrent, there are compelling reasons why the current real estate landscape still offers tremendous opportunities for potential homebuyers.
Real estate has proven to be a strong long-term investment. Even with higher interest rates, purchasing a home today can lead to substantial equity growth over the years. Real estate has a history of appreciating in value, and buying a home now positions buyers to benefit from potential future appreciation. High rates are also holding some buyers back for the time being, which allows you an opportunity to buy with less competition.
While high interest rates can be a concern for those seeking mortgages, they also present an opportunity for buyers to secure a fixed-rate mortgage while rates are still relatively low by historic standards. A fixed-rate mortgage ensures stable monthly payments throughout the life of the loan, providing a sense of financial security and predictability that renting cannot. While rates may feel comparatively high, economists and financial experts predict that interest rates may continue to rise in the coming years. By entering the market now, buyers have the opportunity to secure a home and a mortgage at what are still relatively lower rates before they increase further. If they drop, you can refinance. But how long do you want to sit on the fence and miss out on opportunities while you hope for a miracle (2.65% will probably end up as a once-in-a-lifetime that we all need to move past, unless you simply never want to move)?
Homeownership also offers a range of tax benefits, such as deductions for mortgage interest and property taxes. These advantages can help offset the impact of higher interest rates, making homeownership more affordable in the long run. While interest rates may be higher, lenders are still offering a variety of financing options to suit different budgets and preferences. Buyers can explore loan programs, down payment assistance, and other resources that can help mitigate the impact of higher interest rates.
In the face of rising interest rates, the decision to buy remains an attractive option for those seeking stability, investment opportunities, and a place to call home. While it’s essential to consider the financial implications of higher rates, the potential benefits of homeownership, including equity growth, tax advantages, and personal satisfaction, can outweigh the short-term impact of slightly increased mortgage rates. Working with a knowledgeable real estate agent and mortgage professional can help buyers navigate the current market and make informed decisions that align with their long-term goals.
by Kathe Barge | Jul 21, 2023 | Buyers, Buying Conditions, Contracts, Downsizing, Helpful Tips, Interest Rates, Investment Properties, Market Trends, Mortgage, Real Estate
We are moving toward retiring and downsizing. Is there anything we should be thinking about as we move toward this goal?
One very important thing for you to consider is how you plan to pay for your retirement home. If you are thinking you want to finance your home with a mortgage, you are going to need an income stream that the lender can use to qualify you for the loan. Simply having a large bank account is not enough to get a mortgage – the lender will need to see that your assets are generating enough income to pay for the mortgage and associated home ownership costs. You may not have your assets invested in income producing investments and may instead be invested in appreciating assets. Lenders will not consider capital gains when qualifying you for a mortgage, although they will generally look at your social security income if you are receiving that. Many buyers are surprised by this issue, and find themselves retired with no regular income stream and unable (probably for the first time ever) to get a mortgage.
You do have options of course! You could plan your downsize move BEFORE you retire so that you still have your employment income stream that can be used to qualify for a mortgage. It is very important that you have not announced your retirement before purchasing the retirement home, however. The lender will verify your continued employment right up to your closing date, and if they here from your employer that you are retiring, you may lose your loan.
You could also plan to pay cash for your retirement home. If you plan to go this route, you will want to make sure you have saved sufficient funds. If you are planning to use your equity in your current home to buy your retirement home, you will need to consider how to bridge the gap between selling your existing home and buying the next one – there are many options available to you. If you are planning a retirement and a move, please reach out to me in advance – I can help you strategize for a successful transition on all fronts.
by Kathe Barge | Jul 16, 2023 | Buyers, Buying Conditions, Interest Rates, Investment Properties, Listings, Market Trends, Mortgage, Property Value, Real Estate, Sellers, Selling Conditions
Is the real estate market repeating 2008 all over again?
Absolutely not! I know there is a lot in the news about real estate these days, and the high interest rates and corresponding buyer anxiety are likely the most significant factor influencing what you may be perceiving to be a slow down in our market, but this is not a repeat of 2008!
Currently, 39% of homeowners in the U.S. own their homes free and clear of all debt (a remarkable number) and another 29% have more than 50% equity in their homes. That’s a full 68% of homes that are in very “safe” equity positions – the risk of any significant number of foreclosures is very low, unlike 2008.
In 2008-2011, we had 11-12 months of inventory on the market at any given time. Today, nationally, we have approximately 1.5 months of inventory on the market, with even less locally. This is an incredibly important differentiator between then and now that indicates that we are not moving toward a housing crisis. In 2008 in our area we had about 13000 properties – now that number is closer to 3000.
Additionally, approximately 3million US households earning over $150,000 per year are currently renting, and the average-aged millennials are just starting to buy their first homes. This provides a steady stream or prospective buyers. All of these factors indicate that we are not slipping into a housing crisis – the higher interest rates have just paused some of the typical move-up, move-down, move-around buyers.
by Kathe Barge | Jul 7, 2023 | Buyers, Buying Conditions, Helpful Tips, Listings, Market Trends, Marketing, Real Estate
When I see one of your listings on Zillow and click on contact agent, why don’t you respond? Why is it always some random agent?
As with many things, there is a short answer and a long answer! First, the short answer! Zillow sells the “buyer leads” on all the homes posted on their website to Realtors who pay for the leads! When you click “request a tour” or “contact agent” you will not get the listing agent. This is also true for realtor.com and other aggregating websites. If you scroll down you can see the listing agent’s name and office number, but there is no way to make direct contact with the listing agent. Its easy enough to find my contact info – just google my name and it is readily available!
Now for the longer answer. Zillow is a publicly traded company and as such must operate in a way to maximize returns for its shareholders. Years ago I was able to purchase all of the leads on my listings, but Zillow has discontinued that model, determining that was not the most lucrative option for their shareholders. However, the vast majority of people who click on “schedule a showing” or “contact agent” do not turn out to be serious buyers, so more often than not the agents that purchase these leads are agents who need business and are willing to gamble on the random nature of Zillow assigning them buyer prospects. I am not one of those agents, nor are the majority of my successful colleagues.
My best advice to every real estate consumer out there is do NOT rely on Zillow as a means of scheduling your showings. Why trust your largest investment to a randomly assigned agent? Do your research. Review agent websites. Find a Realtor with the credentials that match what you are looking for in an agent. And then contact that agent directly whenever you are interested in seeing a home! If all else fails, find the listing agents name (far down on the right side column on Zillow) and then google the listing agent to find their cell number and contact the agent directly. To reach me, just add me to your phone: 412-779-6060 – I’m always happy to take your real estate calls!
by Kathe Barge | Jun 29, 2023 | Buyers, Buying Conditions, Helpful Tips, Listings, Market Trends, Real Estate
We are still looking for our new home and not having any luck – any advice?
In the current real estate market, inventory shortages have become a significant challenge for homebuyers. With fewer options available, it’s crucial for prospective buyers to adjust their expectations and be less selective when searching for homes. While it’s natural to have specific preferences and desires when looking for a new home, being flexible can greatly increase the chances of finding a suitable property in this competitive market.
Limited inventory means that the number of available homes in desirable locations is significantly reduced. Buyers should consider expanding their search criteria to include neighborhoods that they may not have considered before. Exploring different areas can unveil hidden gems and present opportunities that may have been overlooked initially. Additionally, being open to alternative property types, such as townhouses, condominiums or co-ops, can provide more options and increase the likelihood of finding a suitable home.
When searching for a new home, focus on the essentials rather than simply rejecting a home due to minor imperfections. While it’s important to prioritize certain non-negotiables, such as the number of bedrooms, being overly selective about cosmetic features or small flaws can significantly limit the available choices. By adopting a more flexible mindset, you can find properties with great potential that might just require a little bit of creativity and renovation to meet your desired aesthetic.
Finally, when inventory is low as it is currently, multiple buyers often compete for the same properties, leading to bidding wars and higher prices. By broadening your search criteria and being open to a wider range of options, you may find yourself in a less competitive position. This can give you more room to negotiate, increase the likelihood of a successful offer, and potentially secure a home at a more reasonable price.
by Kathe Barge | Jun 23, 2023 | Buyers, Buying Conditions, Design, Helpful Tips, Home Improvements, Home Staging, Listings, Market Trends, Marketing, Property Updates, Real Estate, Sellers, Selling Conditions
Do you think it’s a good investment to stage our home before putting it on the market?
Home staging is one of the most important things a seller can do to improve their chances for a successful sale! Staging is just as important as is getting the price right when it comes to attracting the most buyers and driving in the best possible offer. The National Association of Realtors shares “Buyers want to easily envision themselves within a new home, and home staging is a way to showcase the property in its best light.”
Why is staging so important? The overwhelming majority of buyers start their home search online and surveys show that buyers who see photos of a staged property online are more willing to do a physical walkthrough of the property. 81% of buyer’s agents surveyed indicated that staging helps their clients visualize life in a home. A third say that staging boosts home value, particularly if the aesthetic fits the client’s tastes. And nearly one quarter of survey respondents say that staging may help buyers look past property faults.
Home staging is typically done by trained professionals specializing in readying homes for the best possible outcome when they hit the market. While Realtors can provide advice, a home stager’s expert eye can make a huge difference in the success of your sale. Sometimes stagers can work with your furnishings, and sometimes they bring in rented furnishings. Yes, it is an expense, but in my professional opinion, sometimes it takes money to make money, and home staging is an excellent investment to generate the best possible returns!
Don’t just list your home, get it the attention it deserves by making sure it looks its very best from the outset!
by Kathe Barge | Jun 13, 2023 | Buyers, Buying Conditions, Design, Downsizing, Helpful Tips, Home Improvements, Property Value, Sellers, Selling Conditions
Both our bathrooms have claw-foot tubs which I am thinking of replacing with walk-in showers. What is the value of having a tub in the bathroom in place of a shower or in addition to a shower?
Every home must have at least one bathtub. A prospective buyer might have kids or just like a good soak and many will reject a home if there isn’t a tub available. More often than not, if there is only one tub in a home it is in a kid’s bathroom, and this is most commonly configured as a tub/shower combination. There could be a tub in the master bathroom as well, but only if there is abundant space. If you have to choose between a large, luxurious (spacious) shower in the master or a tub/shower, ditch the tub and go for a pure shower. If there are multiple kids bathrooms, then only one needs to have a tub. Typically, that tub is not a claw foot tub unless it has a shower ring (which is not tremendously appealing). When claw foot tubs remain, they are typically in a bathroom that has plenty of room for both a shower and a tub. Re-glazed, these antique tubs can be the focal point of a remodeled luxury bath.
As far as value goes, value is really only recouped if you remodel the entire bathroom. In other words, if you put in a new shower but leave the old floor tile and old vanity, you really have added no value. If you redo the whole bathroom, you will likely recoup more than what you pay to remodel the bathroom, as long as you shop smartly when doing your remodel and sell your home while the bathroom still feels current (under 15 years). It is also very important to make choices that are classic and stand the test of time if you don’t want your home to feel dated sooner rather than later. I suggest, given the age of your home, that you make classic choices — Carrera marble, white subway tile, and silver-tone fixtures would all be timeless choices appropriate for an historic home.
Of course, I am available to provide on-site advice if that would be helpful to you as you have many options – give me a call – I’m happy to provide my free advice!
by Kathe Barge | Jun 5, 2023 | Buyers, Buying Conditions, Contracts, Interest Rates, Listings, Market Trends, Property Value, Real Estate, Sellers, Sellers-Contracts, Selling Conditions
Are you still seeing multiple offers on homes these days?
Believe it or not, yes! Despite higher interest rates, we are still seeing multiple offers, depending on location, condition and price range. Multiple offers are primarily coming in the under $1,000,000 market. If your home is in a higher price range, that does not mean that you won’t get an offer, and it doesn’t mean that it won’t be a good offer – but you may only get one, and you may need to wait for it – the market does not always offer instantaneous results. The market is still strong, just not as crazy as it was a couple of weeks ago –the buyer demand is starting to be satisfied.
Multiple offers, over-asking-price offers and full-price offers are also far more likely in our hottest neighborhoods and historically most popular locations. Additionally, sellers who have conditioned their home for market, both in staging and making changes to meet current buying trends, are most likely to be those with multiple and/or full price offers. It is very important, however, to keep in mind that your initial asking price will dictate whether or not you receive a high offer. If you choose to challenge the market with your asking price, and are at the top of your neighborhood, it’s unlikely your home will be snapped up or will receive an asking price offer – you may need to be patient and wait for a buyer who sees the value as you do. On the other hand, if you price with last year’s prices, or shoot below market, you are far more likely to spur a bidding war. Yes, we are selling at premium pricing on premium products, but this typically happens because the asking price feels a little on the low end to buyers to begin with. So my best advice to sellers is to take the time to condition your home to meet market expectations and then price carefully – no one wants to give their home away, but do be careful not to overshoot the market’s historic guidance on pricing.
Buyers – you still have a lot of competition out there. If you are looking for a historically hot property (based on size, location or price range), you still need to plan to be very aggressive with your offers if you want to win, and make sure you are fully pre-approved!
by Kathe Barge | May 12, 2023 | Buyers, Buying Conditions, Contracts, Helpful Tips, Market Trends, Marketing, Real Estate, Sellers, Selling Conditions
We have been hearing about the lack of inventory and the hot market – we feel this could be a great time to get a premium price for our home. Are we right?
Inventory is low, that is a fact. We are back to bidding wars. Data indicates that Pittsburgh prices increased 12.7% in 2021 and another 5.5% in 2022. High interest rates have not caused a downturn in this spring market. The millennials are buying in droves and there is no end in sight. So yes, now is a great time to sell.
However, not every home is selling fast and at a high price. There are plenty of homes sitting on the market, with gradual price reductions. Why? Longer time on the market is often the result of an improper alignment of price and condition. In other words, I like to tell my sellers I can sell any home, but not at any price. The price of the home must be carefully calibrated to features and condition. This is where an expert agent comes in. Agents who tour all of the inventory can help you to understand the subtle differences between homes and what it takes to generate premium prices. Not every client is willing or able to invest the resources to generate a premium price and that’s ok – price just needs to be adjusted accordingly.
So what does it take to achieve a premium price? In my opinion it starts with a pre-inspection and repair of some of the most concerning items. A spruce-up might be necessary – repainting wear and tear or strong colors, replacing dated lighting fixures… A deep clean is generally a must, and this goes way beyond what your weekly housekeeper can do. Staging is also a must if your house is vacant, and even if its not, a home stager or home organizer can help you get everything in good order.
Pricing, however is the ultimate key to success. It seems many sellers want to push the market right now and if you aren’t careful, you may end up with less than you would have had you priced properly out of the gate. It’s important to get the advice of an expert in your market area and then follow that advice, regardless of what you think or need. If you have to reduce later, you will have lost market momentum and that cannot be regained. Review a well-reasoned market report and then price according to the data, not according to your emotions, and you will likely have a positive result you can take to the bank!
by Kathe Barge | May 2, 2023 | Buyers, Buying Conditions, Contracts, Helpful Tips, Interest Rates, Listings, Market Trends, Real Estate
We have been sitting on the sidelines for a while now waiting for a home that meets our wish list to come on the market – what’s coming this spring?
You might be surprised to find out you are one of dozens of prospective buyers sitting on the sidelines waiting for their ideal home to come on the market. Nationally we are at a 20 year low in available housing inventory. What is going on you might ask?
Many blame it on the Baby Boomers! Seventy-eight percent of Boomers own their own homes, and 85% of them have no intentions to move within the next year. This is tying up a significant portion of potentially available housing inventory. Why aren’t Boomers moving? Stated reasons range from being happy where they live and not wanting to uproot their lives, to having inadequate choices in empty nester inventory to escalating prices that make scale down homes more and more expensive. Boomers are choosing to stay in the homes and communities where their family and friends are.
In Sewickley, we have very few opportunities for scale down housing, and so Boomers are remaining in their homes. As a result, our inventory continues to dwindle and there are very few new introductions. There will likely be a few relocations, but with the low inventory and large backlog of buyers, I expect pricing will be high and bidding wars will continue.
To be successful in this housing market, if you define success as actually getting a home and moving, you are going to have to accept a few key premises. First, you need to reevaluate your wish list and see what compromises you are willing to make. We still have many nice homes on the market – they may not be a perfect match for you, but could you make one work? Second, if you decide to wait and a home comes on the market that is a good fit for you, be prepared to act fast and bid high. Complete the preapproval process now so that your offer is as strong as possible.
Our market is a steady one and I do expect we will see some new introductions as we move into our spring market, but your best recipe for success is one that includes reevaluation of the current inventory, compromise, fast action and generous, well-crafted offers.
by Kathe Barge | Dec 1, 2022 | Blog, Buyers, Buying Conditions, Contracts, Helpful Tips, Interest Rates, Market Trends, Mortgage, Property Value, Real Estate
WE WOULD LIKE TO BUY A NEW HOME SOON BUT INTEREST RATES SEEM VERY HIGH – WE SEE ADVERTISEMENTS FOR INTERNET LENDERS OFFERING WHAT SEEM TO BE BELOW MARKET RATES. IS THIS TOO GOOD TO BE TRUE?
If you were simply refinancing an existing mortgage debt, you MAY be ok choosing an internet lender. You would just need to be very careful that, before you apply to refinance your loan, you receive from the lender a full disclosure of all the costs and not just the rates. Often times I see lenders have exorbitantly high fees connected with low rates. In a sense, you would be buying down your rate by paying high fees upfront. You would want to be sure to compare them on the same day to a couple of local lenders and understand what you are paying to get the quoted rates. The reason you must compare rates on a singular date is because rates go up and down continuously and a rate may seem lower simply because you called a particular lender on a date rates dropped.
Since you are buying a new home rather than refinancing, I do NOT recommend that you use an internet lender. They do not tend to be familiar with area norms and that can cause you more headaches than you can imagine. There is a long list of particularities to PA Agreements of Sale and the last thing you want to do is have your closing delayed (while your movers are standing at the curb) while you wait for your lender (who does not have a local presence that you can visit personally to address any issues) to sort things out. As they are not familiar with our Agreements and processes, internet lenders may also impose requirements on you that are not requirements generally imposed by local lenders that may disadvantage you later. Finally, internet lenders often do not understand that PA Agreements of Sale declare “time is of the essence” inside the contract – what that means to you is that if you miss your closing date because the lender isn’t ready to close, the seller does have the legal right to declare you in default, keep your hand money and sell the home to someone else.
When buying, why take a risk? Rely on your trusted Realtor to help you find a local lender who offers the most competitively priced loan products and delivers exceptional customer service. Realtors cannot accept referral fees from lenders, so you can be sure we are motivated only by knowing you will have an outstanding transaction. Feel free to reach out to me for help finding you the best local lender to meet your financing needs!
by Kathe Barge | Nov 4, 2022 | Buyers, Buying Conditions, Contracts, Helpful Tips, Interest Rates, Investment Properties, Listings, Market Trends, Mortgage, Property Value, Real Estate
Interest rates jumped up again. Is it time for us to just wait until spring and hope they start to come back down?
If you are a buyer, the real estate market offers you a great opportunity right now! Don’t be fooled by the higher interest rates – this is an awesome market for you to buy in! Why? Because all of the people who you would have been competing with are afraid of the interest rates and sitting by the sidelines. This allows you to have a competition – free opportunity to buy a home! Just six months ago, buyers would have been overjoyed to have an opportunity to buy a home without competition, to have had an opportunity to have had an offer accepted on the first home they offered on instead of their seventh, to have been able to purchase a home at asking price rather than asking price plus 10 percent! Do not miss this golden opportunity – there are some very nice homes available right now. You can refinance later with a convenient no cost refinance loan – get the house now! Once rates start to come back down, the buyers (who have all been sitting by the sidelines with you) will come racing back into the market, and bidding wars will be back. Make the smart move – buy now.
And as a side note, I do not feel we will see a “crash” in prices. Inventory remains at record lows and those homes that are selling continue to increase in their sales prices to new record highs, despite the increasing rates. This is not 2008 – I am not anticipating any “deals” to be had this spring – if anything the natural increase in the buyer pool we see every spring will boost prices because of the extreme lack of inventory. Feel free to reach out to me and we can strategize on how you can take the most advantage of the current real estate market while you still can!
A home’s value is set by the market. Value is always determined by what a buyer is willing to pay for your home. Many factors come into play in setting that value. Market value reflects quantitative factors such as: # bedrooms, # bathrooms, # garages, placement of garages (attached or integral), lot configuration (large and functional back yard? Cliff lot?), location of the home generally, age of roof, age of mechanicals. Market value also reflects more qualitative items: how updated is your home, and is it all new, or just refreshed? What is the floorplan (open concept?) What are your wall colors? There is always a range that value will land in, which we call the range of reasonable. There is no ONE price at which a home will sell. If there are many buyers seeking a home like yours, it will sell at the top of the range of reasonable. If there are not, it will take longer to sell and may sell a bit lower in the range. What the market does not consider in setting a value of a home is what you need from the home. In 2008, many homeowners had used their homes as ATMs and withdrawn large sums of money for educations, vacations and cars. When the market softened, there was not enough equity for them to be able to sell their homes and not be in a short sale situation. This fact, that a homeowner over-extended themselves on mortgages, is not the least bit relevant to market value. The market is also not going to consider what you plan to do next. If you plan to move to Los Angeles to be closer to family and are finding that the Pittsburgh market is not going to yield you enough to be able to buy in L.A., you will need to turn to other investments to make up any difference.
We are in a very robust market – your home is far more likely to garner more now – whatever that may be – than it could have in the past. Forecasters are also suggesting that values will soften by year end. My crystal ball is out for service, but what I can tell you is that every hot market eventually softens. Waiting out the market so that you can get a price that the market is unprepared to deliver at this time may have you waiting many, many years, and during that time you may need to invest even more in your home in order to deliver to the market what it needs in order to deliver an acceptable sale to you.
by Kathe Barge | Sep 8, 2022 | Buyers, Buying Conditions, Helpful Tips, Listings, Market Trends, Property Value, Real Estate, Sellers, Selling Conditions
We see recent projections forecast a housing downturn. What do you think?
You are correct – Goldman Sachs recently released a paper forecasting that the US housing market will see a downturn. Their reports predicts that new home sales will drop 22%, existing home sales will drop 17% and the housing GDP will drop 8.9% this year and that the decline will continue in 2023. This downturn is attributed to rising interest rates that were implemented to combat inflation. They have also noted that pandemic trends for second homes are fading. That said, the report does not anticipate a downturn in prices – just demand – and suggests given other economic factors at play that the market will remain flat for most regions.
What does this mean for home sellers? It means a return to traditional marketing. In other words, home sellers need to anticipate that they will need to take the time to condition their homes for market, stage their homes, and present their homes in an appealing way for buyers. Gone are the days, at least for now, when buyers are so desperate that they are going to buy homes in any condition just to get a home. Sellers also need to anticipate that it may take longer to find a buyer for their home — typically in Pittsburgh most homes would take between 120 and 150 days to sell in traditional market. Home sellers need to adjust their expectations and not anticipate that their home will likely be sold in one week. It will also be very important to price your home correctly and not take giant stabs at the market just to see if it might stick. It probably won’t stick. Appraisers are starting to doubt valuations on homes and we are starting to see some appraisal failures. For you sellers out there, it will be very important for you to pay greater attention to whom you choose as your listing agent. Marketing techniques and agent experience will become all the more important in generating a successful sale of your home. Take the time to do your research and choose an agent with great experience in all kinds of markets.
Buyers – I seriously doubt that this is going to become a buying a free-for-all like we saw back in 2009. There is no anticipation that there is going to be a downturn in pricing in Pittsburgh. But the good news is you may be able to buy a home with less competition and you may even be able to get a small discount. You still need to plan on being well qualified when you go in with your offer. And again, choosing a buyers agent with significant experience who can help you to understand market trends and where you should be offering will be critical to a successful home purchase.
by Kathe Barge | Aug 26, 2022 | Buyers, Buying Conditions, Contracts, For Sale By Owner, Helpful Tips, Home Improvements, Inspections, Listings, Property Updates, Property Value, Real Estate, Sellers, Sellers-Contracts
We find the inspection process confusing – do we have to fix everything in the inspection report before we close on our home or just the repairs the buyer requested?
The home inspection report is the document from which your buyer works to make their repair requests of you. Some buyers will ask for everything and others will ask for only those items that they think are important. They may let some things go, for example, if they are planning on renovating an area and anticipate fixing those items as a part of the renovation.
Once you and your buyer agree on a list of repairs, these are memorialized on an addendum. It is that addendum, called a Change in Terms Addendum (“CTA”), from which you work when completing your repairs. You need not refer to the inspection again unless the CTA references it. You do, however, need to make sure that you do everything on the CTA exactly as specified, so be sure to read it carefully and provide a copy to your contractor(s). For example, if the CTA says that you will have GFCI outlets installed by a licensed electrician then you need to make sure you hire a licensed electrician, and not your favorite handyman, to make the repair! If the CTA says you must paint to match existing then you need to take a sample of the existing paint to the paint store and color match it – don’t rely on old paint in cans – paint fades with age and it won’t match. Be very careful to be sure you are complying with the terms of the CTA – if you do not, or if your contractor does not, your closing may be delayed or postponed until the work is done as specified. Along those lines, be sure to review your contactor’s work when complete and make sure that he actually did what you agreed to do on the CTA. If not, request that he return before it becomes a walk-through issue.
And of course, be sure to get paid receipts from all contractors, or if they have not been paid, notify the closing company so that they can be paid at closing. All repairs must be paid for before ownership changes hands so be sure to stay on top of your bills, and provide receipts to the buyers agent.
by Kathe Barge | Aug 22, 2022 | Buyers, Buying Conditions, Helpful Tips, Real Estate, Sellers, Selling Conditions
My home has so many special features. I think it would be best if I were at showings so I could explain them to prospective buyers. Is that ok?
When you are selling your home, its normal to think that only you can fully convey your home’s fine qualities to a buyer. This leads some sellers to consider the possibility of being home for showings, so that they can make sure that the buyer prospects appreciate all of the home’s amenities. While this may seem sensible to a seller, nothing could be further from the truth!
When buyers visit your home, it is important that they be allowed the space to imagine the home as their own. This starts, of course, with home staging, so that the home is not overly personal when the buyers arrive. But it extends to allowing them to tour the home alone with their buyer agent. For buyers to buy a home, they must bond to a home. For buyers to bond to a home, they need to be free to relax in your home and chat with their agent about what they would do to make the home their own. This will not happen if you are present. So what can you do to make sure they appreciate your home’s qualities? Hire a listing agent who will design a custom brochure for your home that is available when buyers visit your home. Such a brochure is your best ammunition – they can take it home and recall all of your home’s wonderful features and get their questions answered as well.
Giving the buyers their space extends to the home inspections as well. The period during the home inspection is one of normal buyer remorse. Did we buy the right home? Will a better home become available? Allowing buyers the freedom to return to your home alone will allow them to bond again to your home and stay committed to it during the sometimes difficult inspection process.
In fact, the only time you should interact with your buyer is at the closing. From initial showing to return visits, inspections and walk throughs, you should always vacate your home and give the buyers their space!
by Kathe Barge | Aug 8, 2022 | Buyers, Buying Conditions, Design, Downsizing, Helpful Tips, Home Improvements, Home Staging, Inspections, Market Trends, Property Updates, Property Value, Real Estate, Sellers, Selling Conditions
We aren’t ready to move but want to update our home – what are the best choices for paint colors and flooring changes, assuming we may want to move in the next few years?
New paint colors must harmonize with the rest of your home, unless you plan to repaint the entire interior of your home, so any suggestions need to be taken in the context of what else is going on inside your home. My best suggestion for a currently fairly timeless paint color is Benjamin Moore’s Edgecomb Gray.
This color blends with virtually every shade of white that might be on your trim and nearly every color flooring that might be in your home. It is really more of a greige than a gray and, like a chameleon, changes color a bit depending on what is in the space and what kind of light is filtering in through the windows. However, if your home is a palette if golds, for example, this color might not be the right choice! Trending now is white on white (with trim and walls painted the same or nearly the same shade of white), but this is a design style that is best incorporated throughout the entire home, and not just a singular room. If you have wallpaper in your space, then it’s a very good investment to have it removed (do not paint over it, no matter what the painter tells you) and painted in a color that coordinates with your design aesthetic. Wallpaper overall remains a difficult sell.
As to flooring, real wood floors remain the best investment you can make. They are timeless and easy to refinish if they become worn or if the buyer prefers a different color. I highly recommend choosing a medium tone brown, not too yellow, red or dark and preferably in ¾” thickness. If engineered wood floors are what your budget requires, choose one that the manufacturer indicates can be refinished at least once, and keep a few extra pieces on hand in case you damage any through normal wear and tear. Bamboo is another great option and there are on-line suppliers that offer a variety of shades in ¾” planks – it is very resilient, environmentally friendly and installed can look like hardwood. I do not recommend that you choose the latest trend, “LVL” (luxury vinyl flooring), for anything beyond the basement level of your home. These are plastic floors, and if your home will likely sell for over $500,000, these floors will not be appreciated on the main or upper levels. Finally, carpet in a neutral tone plush (no berber, no mixed colors) is acceptable as long as they are clean and stain free. If you stain them during the remaining time in your home, you would need to replace them again before you sell your home.
by Kathe Barge | Jul 19, 2022 | Buyers, Buying Conditions, Helpful Tips, Home Staging, Listings, Market Trends, Marketing, Property Value, Real Estate, Sellers, Selling Conditions
We plan to move out of our home before we put it on the market. Any thoughts on selling an empty home?
Some homes definitely sell more readily vacant – my last home was one of them – and so I definitely do not dissuade sellers from emptying their homes before selling them, but there are some important tips to keep in mind!
If you are emptying your home, then empty it. Do not leave behind the items you don’t want. Do not leave behind soaps, shampoos, chemicals, lawn fertilizers… Empty is empty. So please plan on a complete clean out. If you need help finding people to help dispose of items, give me a call!
It is critical to be sure that once your home is empty, you bring in a handyman to make sure that everything is in good order. Holes should be patched and touch-up painted, scuffs eliminated, carpets and windows cleaned, all lightbulbs working … When there is no furniture to look at, the condition of the home is all the more important.
Make sure you have a plan for upkeep of your empty home. The yard must be regularly maintained, including weeding, leaf and snow removal. The interior tends to be easier to keep up, but do be sure you arrange for a periodic quick clean. It is also a good idea to hire a neighbor or friend to check your home regularly to make sure that there has been no crisis at your home (such as a broken water pipe).
Be sure to keep your home properly conditioned (warm enough in the winter and cool enough in the summer). I have actually seen mold grow inside a home when sellers do not keep the air conditioning running in warm weather in their vacant homes – this will cost far more to clean up than the air conditioning bill! Finally, consider putting lights on timers so when buyers drive by in the evening, your home does not appear dark and unloved!
Selling a vacant home is not a bad thing, but it is important that you follow these tips to be sure your home is presenting well to prospective buyers!
