Getting Ready For Market

Getting Ready For Market

by | Feb 12, 2024 | Blog, Buyers, Buying Conditions, Design, Helpful Tips, Home Staging, Inspections, Investment Properties, Listings, Property Updates, Property Value, Sellers, Selling Conditions

How do you approach homes that may not be ready for market when you first see them?  Is it better if the home is completely ready before you see it?

Generally, its best if I see your home before you make any changes to get it ready for market. After 25 years selling real estate in this town, I am able to help you figure out where your money is best invested to reap the highest return from the market and advise you on current trends.  You may be focusing on things that are not important to buyers, and may overlook things that are.

Realizing top market value is a common goal for sellers, and in today’s HGTV-inspired market, it’s achievable with the right preparations. I’m here to guide you through those decisions, using my market expertise to ensure that your investments are both wise and likely to return their value. Together, we can navigate the nuances of the market’s current expectations. My role is to provide you with candid, constructive feedback to help you understand the market’s perspective. It’s a collaborative journey, where I share insights—not to criticize, but to empower you. I appreciate the love and care you’ve invested in your home, and my aim is to honor that by positioning your property as a compelling opportunity for buyers, avoiding the pitfalls of a stagnant listing or the need for multiple price adjustments.  Therefore, while your home’s story is uniquely yours, I’m here to help translate it into the universal language of the current market for a seamless sale. Let’s work together to turn your home’s potential into a polished presentation that stands out, ensuring you don’t just list your house, but truly showcase it for what it can offer to the next owner!

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Experience Makes

The Difference

If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home! 

Connect With Kathe

Buying is Still a Smart Choice

Buying is Still a Smart Choice

by | 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.

Experience Makes

The Difference

If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home! 

Connect With Kathe

Planning for Retirement

Planning for Retirement

by | 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.

Experience Makes

The Difference

If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home! 

Connect With Kathe

Today’s Market is Not A Repeat

Today’s Market is Not A Repeat

by | 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. 

Experience Makes

The Difference

If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home! 

Connect With Kathe

Don’t Let the Interest Rates Stop You

Don’t Let the Interest Rates Stop You

by | 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.

Experience Makes

The Difference

If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home! 

Connect With Kathe

The Effects of Rising Interest Rates

The Effects of Rising Interest Rates

by | Feb 10, 2022 | Blog, Buyers, Buying Conditions, Contracts, Investment Properties, Listings, Market Trends, Mortgage, Property Value, Real Estate

What impact do you think rising interest rates will have on the real estate market? 

I can’t tell you how many years the Fed has been warning us that they are going to raise the interest rates, and then nothing happened. But now, it looks like it is finally happening. Less than one year ago, conforming loans with good credit could be procured at rates below 3% fixed. Now they have inched up to 3.75% for conforming loans. While these are still historically great rates, the days of mortgage interest rates in the 3% range appear to be gone and we are slowly inching upward.

What impact will this have on the market? Typically, when rates increase the market slows. Buying power decreases – a buyer will qualify for a smaller mortgage amount when rates are higher. Even if a buyer qualifies for a loan amount, they may not want to pay the added amount each month attributable to the higher rate. Many buyers are cognizant of how much they don’t have available to spend on quality of life purchases, such as dinners out, when they have larger mortgage payments. This boils down to the fact that they may be unwilling or unable to buy at a price they could have last year, and this could depress housing prices.

However, this is counterbalanced by the fact that we are in a market with record low levels of inventory, so it is highly unlikely that interest rates will have any effect on housing prices in the short run. If anything, rising rates should cause buyers to move quickly and lock in homes and mortgages before rates continue to climb. And this would be the most sensible short-term response to rising rates. Buyers – rates are actually going up! The time to act is now!

Experience Makes

The Difference

If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home! 

Connect With Kathe

Investment Properties

Investment Properties

by | Jan 27, 2022 | Blog, Buyers, Buying Conditions, Contracts, Investment Properties, Market Trends, Mortgage, Property Value, Real Estate

We are interested in diversifying our portfolio and purchasing rental properties – any thoughts?

 The first thing to keep in mind when considering a rental property is how you intend to pay for it. Rental properties are investment properties and subject to different lending rules than the home that you live in. Therefore, a lender will expect that you put more down as a down payment on a rental property and you will pay a higher rate of interest. Typically, lenders are looking for no less than 20% down on your purchase.  And of course until you establish yourself as a successful landlord, your income is going to need to be sufficient to support the mortgage on your primary residence as well as any debt on your rental investments.

The second thing you need to think about is what kind of tenant you are interested in renting to. If you are hoping to rent to a family who might be in town for a couple of years with a temporary job assignment, then purchasing an apartment building with one and two bedroom apartments is unlikely to attract the type of tenant you hope to find. In that scenario, you would be looking for a single-family home in all likelihood (or possibly a townhome) in a good school district such as Quaker Valley. If you are hoping to find young professionals, you might look for something closer to downtown that has a trendier vibe to it.

You also need to take a look at the return on investment that you are seeking from the property. You will need to consider how much you are putting down on the property, how much you were paying in interest on any mortgage that you take out, your property taxes, maintenance of the building, any homeowners association fees, and any utilities that might be the responsibility of the landlord (these are typically utilities that are not separately divided in the particular structure, such as water).  Putting together a spreadsheet with all of the expenses and your expected income will help you to determine whether or not the anticipated net income is worth the risk of investment to you.  Be sure to build in some vacancy months – most properties are not leased 100% of the time.

Finally, you need to give some thought to how you will manage the property. Are you going to hire a property management company to handle that for you, or will you be more hands-on? Who is going to handle maintenance requests when something goes wrong? The beauty of being a tenant is that if something breaks, it’s not your responsibility to get it fixed. But as the landlord, are you going to be taking care of the repairs and if not, do you have a reliable handyman on-call that is willing to handle those items for you. If you are planning for others to manage the property on your behalf, you will need to build those costs into your financial projections as well.  If investment properties are something you would like to consider, feel free to reach out to me and we can discuss these opportunities further.

Experience Makes

The Difference

If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home! 

Connect With Kathe