Be the “Squeaky Wheel”

My friend’s closing on her existing home was delayed and she ended up having to delay her closing on her new home, and was stuck with all of her stuff on a moving van and unable to move in to her new home. How can these major inconveniences be avoided?

Back-to-back closings do raise the possibility of delayed closings and moving vans sitting curbside waiting to unload. When there are multiple transactions lined up on top of each other, if one in the line-up fails to close on time, it will affect everything in line behind it. Ideally, transactions would not be back-to-back, but this only works if buyers are paying cash out of existing accounts or have sufficient resources to carry two homes, so that the new home can be closed independently of the closing on the old home. But even if transactions are not stacked, closing delays can still occur, causing unhappy buyers and sellers, because lenders aren’t ready.

So how can these inconveniences be avoided? Selection of your lender and closing agent are absolutely critical. There are a lot of people out there who would like your mortgage and closing business. Many may even be your friends, neighbors or family members. But the relevant question, in addition to rates and fees, is whether they close on time every time. This is where you really need to rely on your agent’s expertise. Even consumers who move frequently only engage in the mortgage process once every few years. A busy agent is dealing with lenders daily. We know who stands behind their word and will not let you down, and who will not. A well-intentioned but poor performing lender can cost you significant unhappy delays – make a careful choice up front.

It is also crucial that you get your lender all of the documentation that he needs immediately at the time of mortgage application. You don’t want to be part of any delay. Finally, even once you have turned in all of your paperwork, its important to check in with your lender weekly, daily the week before closing, until they tell you that they have the “clear to close.” The old saying “the squeaky wheel gets the grease” is never truer than when it comes to closing your mortgage loan – stay in close touch with your lender!

16 Highview

It’s time to start planning your summer pool parties at 16 Highview! Nestled on a private 3.87 acre lot in an established neighborhood and featuring a beautiful in-ground pool, the views of sunsets off the back deck are spectacular! Exceptionally open floorplan is ideal for entertaining! Newly remodeled kitchen features granite countertops and stainless appliances. Two story great room. Main level also features a large den/home office, inviting dining room, laundry adjacent to the kitchen, inviting screened back porch and main level bedroom with remodeled full bath, perfect for a nanny or in-law! The upper level is home to a large master suite with en-suite bath and two additional bedrooms. The lower level is finished with two gamerooms, full bath, sauna, wine room and three car garage! $625,000   Read More…

 

213 Chestnut Road  – Open House, Sunday, June 23rd

Beautifully remodeled Sewickley Village Victorian with high ceilings, open floorplan and fabulous original architectural detailing. Wonderful newer master suite with stylish newer bath. Four finished levels of living space including lower level gameroon. Flat backyard, two car detached garage. A very easy walking distance to Village shops and restuarants. Open this Sunday, 1-3pm. $825,000  Read More….

QUICK SEARCH

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

Avoiding Mortgage Pitfalls

I have a friend who just had a terrible time closing on his mortgage loan because he moved some money into his checking account right before closing.  Any tips om making sure the mortgage process is a smooth one?

Mortgage rates remain low, but the process of obtaining a mortgage is more complex than most buyers appreciate.  Underwriters are extremely detailed in their review of mortgage applications – one small “mistake” could derail your entire application.  Take the time before you buy to understand the possible pitfalls, and then steer clear for a smooth mortgage process.

First, don’t make large undocumented deposits into your bank accounts. Mortgage guidelines require that underwriters review all deposits reflected on bank account statements. If there are deposits present on a bank statement and the underwriter cannot tell where the funds came from, then the underwriter may ask for you to provide a “paper trail” to document the source of the funds used for the deposit.  When making a deposit, keep the associated paperwork (i.e. the “paper trail”) you may have received that would show where the funds came from for the deposit (i.e. check stub, copy of check, receipt for liquidation of another account, etc…). Try not to make cash deposits if at all possible as it is difficult to show where “cash” came from. Try not to move your money around between accounts. There will be plenty of time to consolidate funds if you desire after you’ve closed on your new home.   Be sure to save ALL pages of your bank statements. Do not throw them away or shred them.

Second, strive to have ‘boring’ bank statements – no NSF charges, no unusual deposits, not a lot of moving around of money between accounts. Achieving this will definitely make your mortgage process go smoother.

Finally, don’t open new credit and don’t take on new debts. Unless advised to do so by your mortgage professional, you should try to avoid having your credit checked by anyone or taking on any new debt (i.e. credit cards, car loans, lines of credit, etc…). Numerous credit inquiries may impact your credit score which in turn could affect your mortgage loan and interest rate quote. In addition, underwriters may require that you write a letter explaining the inquiries on your credit report stating if you did or did not acquire any new debts as a result of the inquiry. While it’s tempting to take advantage of an extra 10% off at a department store if you open a new credit card with them, it may be best in the long run to pass on those offers and use one of your existing credit cards.

Check back next week for more tips on making your mortgage application process a smooth one!

200 Summerlawn Drive – New Listing 

Flawlessly finished, beautifully styled and meticulously maintained, this custom-built home is ideal for entertaining as well as being a welcoming place to call home!  Huge 1 acre lot with incredible green space, privatized by mature trees.  Open floor plan with nearly 5000SF above grade plus finished walk-out lower level. 6 bedrooms, 5.5 baths, convenient upper level laundry.  Immaculate condition.  So much to fall in love with!  $775,000  See more…

 

515 Spanish Tract

Simply spectacular renovation of this inviting home – nestled on 7+ private acres in close-in Sewickley Heights.  Expansive windows bring the stunning natural surroundings into every room. Open floorplan, with new kitchen, baths, flooring, windows, roof, generator… four outdoor venues to enjoy the beauty of the location from.  5 bedrooms, 4.5 baths. Incredible pool. Turn-key ready for you! $1,750,000  See more… 

 

QUICK SEARCH

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

Highest is Not Always Best!

Is the highest offer always the best offer in a multiple offer situation?

For those of you looking for a quick answer, the answer is a resounding no!  For those of you wondering why, read on!

There are many important components to an offer, and price is only one of them! First is financial ability to perform.  An offer is worth nothing if the buyer is unable to pay for the home.  A cash offer with proof of funds is your best bet, but most buyers take mortgages.  If the offer is contingent upon the buyer getting a mortgage, make sure you receive a pre-approval letter from a local, well-reputed lender (and not an internet lender).

Second, make sure you receive a substantial amount of hand money.  Hand money is all you have if a buyer backs out of the deal. Sometimes buyers just change their minds.  Maybe a house they like better comes on the market.  Maybe they figure out that the home needs more work thab they originally imagined and the remodeling costs get too high.  Maybe they take a new job that is too far from your home.  There are many reasons why buyers change their minds and if you lose your buyer, you will want to be sure you have a decent amount of hand money to compensate you for the loss.

Finally, some buyers will offer more for a home with the expectation that they will “beat you up on your home inspection.”  Your best line of defense against these tactics is to make sure that you have been exceptionally thorough in your disclosure so that there is nothing (or almost nothing) wrong that you haven’t already told them about.  A pre-inspection is a great way to make sure that your home is in great shape and that all issues are disclosed – it will save you money in the long run.  Some buyers will even waive inspections if you provide a pre-inspection from a quality home inspector, which is the best scenario of all!

63 Thorn Street

Expertly remodeled, 63 Thorn paints a modern landscape on a charming traditional palate to create an exceptional home. Sited on a large lot with fully fenced back yard. The expertly designed and crafted kitchen (which is open to the family room) is flooded with light from an entire wall of windows that bring the private backyard into this warm and inviting space.  The dining room has also been opened to the back yard through an impressive wall of windows and doors, and spills effortless out onto the new back deck.  The second level is home to a new master suite with large closet and spa-like private bath.  Four additional bedrooms, two full baths and a convenient second floor laundry room complete the upper levels.  Please join us for our open house this Sunday! $1,450,000  See more…

 

439 Oliver

Located in one of Sewickley’s most sought after neighborhoods, once inside you will be surprised how big this home is!  Beautifully remodeled, it offers three spacious finished levels of living space, including a main level bedroom suite! The newer kitchen is open to both the dining area and large family room. Walls of windows overlook the beautiful backyard – French doors open to the private patio. A convenient mudroom provides access to the attached garage. The lower level includes a finished game room, full bath, fifth bedroom and a spacious storage/mechanics/laundry area. Close proximity to all village amenities and schools. Freshly painted interior…move in and enjoy all that Sewickley has to offer. Please join us for our open house this Sunday! $675,000  See More….

QUICK SEARCH

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

Getting Into the Homeownership Game

We’ve been out of school for a few years, have been great savers and are thinking about buying our first home, but with the recession not so far behind us, it seems like a risky proposition. Any advice?

The millennials, as they are known, are a very risk adverse generation, having watched first-hand as many family members lost their jobs and/or their homes in the last recession. It’s not hard to understand why they have been the slowest generation to embrace home ownership as part of the American dream. But as scary as it might seem to take that first big step, home ownership remains one of the best investments you can make, and the sooner you get in the game, the sooner you will start making measurable progress toward achieving your financial goals.

Keep in mind that most of the housing losses from the 2008 recession were due to the immediately proceeding banking practices that are now far behind us. People were allowed to borrow without proof of ability to pay, to start with, and many used their homes as ATM machines, financing cars, vacations and college educations on their presumed housing appreciation. Today the lending laws are much stricter in an effort to prevent another crisis, and so you can be assured that if a lender has qualified you for a particular loan amount, you have passed some of the strictest standards and are more than well qualified by any objective standard to get in the housing game.

Owning a home will always be a far better choice than renting. It’s a rare day that owning what you are renting wont cost you less every month, and you are building equity (money you get back when you sell someday) with each payment. If you compare how much it costs you to own a home over 30 years, versus how much it would cost you to rent that home over 30 years, you will always have spent less money and in the end, you will have an asset that you own and can resell if need be. In addition, owning a home gives you certain federal tax breaks that renters don’t get, which further reduces the actual cost to you of owning a home. Home owners also lock in their housing cost for as long as they own that home. So while your $2000 rental payment will go up each year as your landlord increases the rent, how much you spend for a mortgage is locked in for as long as you own your home. Stay there 30 years and you will still be paying the same mortgage payment that you are paying today! No landlord will give you that deal!

This is complex, no doubt, and I would be happy to meet with you to go over the numbers in person, but there is no doubt that its never too early to get into the home ownership game!

 

1432 Beaver RoadNEW PRICE – Complete architect-designed interior renovation of this elegant Sewickley Village Queen Anne Victorian. Private 1.7 acre lot in the heart of Sewickley Village.  Meticulous renovation. 5000SFF+. Remodeled kitchen seamlessly incorporates new cabinetry and granite tops while integrating refinished antique glass cabinet doors into the design. Completely redesigned master suite, with sitting area, turret reading nook, luxurious bathroom and exercise room. Impressive development of the lower level. $1,150,000   See More….

 

21 Thorn Street –   Beautifully remodeled classic historic home on one of Sewickley’s most sought-after streets. Kitchen is open to breakfast room and den; fabulous master suite with gorgeous new bath and private dressing room.  5 bedrooms, including developed third floor.  3.5 baths.  Convenient main level laundry. Finished gameroom on lower level. Two car garage.  Covered front and back porches. Beautiful, large back yard. New roof! An easy walking distance to Village shops and schools. $1,185,000   See More…   See More… 

 

QUICK SEARCH

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

Better Not Wait ‘Til Spring

We’ve been thinking about starting our search for a new home but were wondering if we should wait until more homes come on the market this spring?

The spring market is here (although with the forecasted low temps for this week it may slow things down a bit)! Buyers are definitely buying right now, so if you think a move is in your future, despite the cold temperatures, the time to get started is now! We have seen homes that have been sitting for months go under agreement in the past couple of weeks, some with multiple offers, and our inventory is dwindling.  We still have many nice options available for you to consider, and this is a far better time to buy than March, April or May.

Why, you may wonder?  We have such a severe inventory shortage with lines and lines of buyers waiting for homes to come on the market. Many homes are selling in just a couple of days, before many buyers have a chance to get out and take a look.  As we head into spring this will only get worse. While none of us have crystal balls, there does not appear to be an avalanche of inventory coming on the market in the coming weeks. I expect by March 1st the bidding wars will begin in earnest for well-conditioned, well-priced homes. (As a side note, even with the inventory shortage that we have now had for well over a year, this is Pittsburgh and not California – buyers still exercise a healthy dose of common sense in making their buying choices and don’t tend to overpay – it is still important to price based on historic sales and not exceed recommended pricing by sizeable amounts). If you don’t want to end up in a bidding war, where there can only be one winner and it may not be you, shop now and avoid the crowd!  You may very well get a better deal than you could on the same house in another month!

In doing so, be sure to follow the advice passed on in prior columns (you can refresh your memory on my blog where these columns are posted each week –see www.AskKathe.com).  Be SURE that you are pre-approved so that when you are ready to buy, you don’t have to waste precious time with this necessary step. When you do this, be sure your credit is good or clean up any issues and reestablish good credit. Give me a call so we can get you set up to be notified of all new listings immediately! And if you might consider selling your home, call me today!  We have lines and lines of buyer prospects for your home!

 

244 Thorn Street

New Listing & Home of Distinction -Sited in an idyllic Village neighborhood, this stately brick home offers unparalleled architectural detailing and an exceptionally large home (6765 square feet) with 7 bedrooms, 5 full baths and a large main level with remodeled kitchen as well as living, dining and family rooms plus den! If you are looking for a special home to put your signature on, 244 Thorn Street is ready for your custom touches!   An exceptional Thorn Street value at $795,000.  Read More…

 

49 Woodland Road 

New listing and Home of Distinction -Boasting newer kitchen and baths in the most sought after Village neighborhood, on a gorgeous tree-lined street with sidewalks to everywhere, 49 Woodland offers a unique opportunity for newer construction in the heart of Sewickley Village.  The main level master offers hard-to-find convenience – upstairs 3-5 additional bedrooms offer plenty of space for family and guests. The beautifully remodeled white kitchen opens to the family room and the light, bright sunroom, with 3 walls of windows overlooking the private backyard.  The three car attached garage offers another hard-to-come-by amenity in the Village, as does the finished lower level! $1,775,000  Read More…

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

The Ups and Downs of Mortgage Rates

I know you don’t have a crystal ball, but what do you think about mortgage rates right now?

The short answer: I think they will only go up!  We just had a slight drop in the rates this past week, but that is not expected to hold. If you are considering buying, now is definitely the very best time to take out a loan – by next month rates could have bounced back up again! There is really only one problem I see with this otherwise sage advice – inventory is very limited right now!  You may not find anything that you want to buy!

The good news is we do have a new mortgage product that will allow you to lock the rate for 60 days, even if you haven’t found a home!  The process is quite simple.  The loan application is processed just like if you had found a home – you make full application and turn in your paperwork.  You then have 30 days to get a home under agreement and the remaining 30 days to close.  For those of you who are committed to buying in the short term, this is a very good option to guarantee you the lower rate while still giving you time to shop. If you don’t find a home within 30 days, you do lose the rate lock but you would have still completed the paperwork for your future loan application!

Prospective sellers, lower rates are good news for you too!  Buyers can afford more when rates are lower and home prices therefore tend to be a little higher. We are officially in the long-awaited spring market, rates have dropped a bit AND we have a scarcity of inventory – the perfect trifecta if you are contemplating a sale! Give me a call and we can develop a strategy to maximize your return in this favorable climate!

 

 

 

1432 Beaver
Complete architect-designed interior renovation of this elegant Sewickley Village Queen Anne Victorian. Sited on a private 1.7 acre lot in the heart of Sewickley Village.  Meticulous renovation and transformation into a home that works perfectly for millennial families. 5000SFF+. Remodeled kitchen. Completely redesigned master suite, with sitting area. Impressive development of the lower level. $1,150,000  Read more…

 

 

1 Ohio River Blvd
NEW PRICE!! Outstanding opportunity to own this signature commercial building with over 4000SF of space. Great visibility at the prominent intersection of Route 65 and Beaver, 2 minutes from I-79 and only 11 miles from downtown Pittsburgh. Off-street parking for 8-10 cars. Suitable for many uses, the two-story space is currently configured with several offices and conference spaces, mezzanine area, additional open areas and two restrooms. An excellent investment opportunity, this is a versatile building with a flexible layout, high ceilings, a multitude of possible uses and an ideal location.  $169,000  Read more…

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

Is Pre-Approval Necessary?

We are interested in viewing homes but have been told that before doing so, we need to provide a pre-approval letter or proof of funds letter.  Is this really necessary?

Getting yourself pre-approved to buy before you start viewing homes is an excellent idea.  You will have to have a pre-approval letter to submit an offer (sellers are going to want assurances from an independent third party that you can afford the home before they take their home off the active market to sell to you).  And you certainly don’t want to start looking at homes that you think you can afford, or that you were told you could afford last year, before interest rates increased, only to be disappointed to find out that the home you love is outside your price range.  Getting a pre-approval upfront is the most sensible approach – in this hot market, you could easily lose out on a home while you wait for a lender to pull your information together and get you the letter.  It is best to get it done up front.

Necessary?  That depends on the agent you are working with and the sellers of the homes you are viewing.  Some agents simply will not put a buyer in their car until they have completed the pre-approval process.  On reflection, this makes sense.  Realtors are one of the only professions that don’t charge for their time as it is expended – they are paid for their time only when (and if) you actually close on a property.  Getting pre-approved upfront shows that you are serious about buying a home and not just out for a house tour!  Some sellers also require pre-approvals be provided before they will allow their homes to be shown. As you might imagine, there are some homes that many people would like to see, just for fun, such as very expensive homes or homes of celebrities/ sports stars.  However, selling a home is not about providing entertainment to the general public. One would hope that buyers would understand that sellers do not want to take the time to prepare for a showing to a buyer who is just out for fun – and hence, for those homes that might be a curiosity to many, it is important for sellers to require a pre-approval in advance.

If you are serious about a move, then financing, whether through a loan or with cash you have saved, is a necessary part of the buying process.  My best advice is to go ahead and line up your financial ducks before you start the home search process.  If you need help finding an excellent lender, give me a call!

16 Highview Drive

Spring is around the corner – plan now for a summer of family fun at 16 Highview! You will love the beautiful inground pool and 3.8 acres of privacy, yet sited in a mature Sewickley neighborhood.  With over 4100SF of living space plus a finished lower level, the home features an open floorplan ideal for entertaining.  Newly remodeled kitchen, 3 car garage, main level bed/bath for guest, walk-out lower level, sauna, wine room, screened porch & more!  Remodeled throughout and ready for immediate occupancy! $650,000 Read More….

319 Scaife

Exceptional Sewickley Heights home will take your breath away with its unparalleled beauty. Sited on 5 private acres, it combines the authentic charm of a Sewickley Heights carriage home with modern amenities and stunning design.  Magazine perfect kitchen with top-of-the-line appliances and granite tops opens to a captivating dining room with fireplace and relaxing family room.  French doors open from the gorgeous living room, also with fireplace, onto the sprawling stone terrace, which spills out effortlessly onto the manicured grounds.  Enjoy coffee or wine relaxing under the wisteria-draped trellis. Incredible master suite with three walk-in closets and remarkable custom bath with radiant floors, Victoria and Albert soaking tub and large shower with custom glass enclosure.  Charming enclosed courtyard. Three car attached garage.  $2,150,000 More Info Here…

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

 

Happy New Home!

It’s  a new year and we’re ready for a new home!  What should we do first?

Well, you are asking a Realtor that question, so the answer is probably expected!  The first thing you should do is call me! Once you have done that, here is a look at what comes next!  First, we will meet and determine the likely value of your home in the current market.  The market is quite fluid and values move up and down depending on supply.  Currently we have had very low inventory for an extended period of time and buyers are getting very frustrated, so it is possible that we may see an uptick in values again this spring.  When we meet we will also review all of the many ways I will be marketing your home and the timetable for rolling out the marketing to optimize your result.

Once we set a timetable that works for you, you will want to spend some time “staging” your home. At the most fundamental level, this would involve you “de-cluttering” your home.  It’s amazing how quickly we will our closets, basements and attics!  Movers are not cheap – you do not want to move more than you know you will want to keep.  So now is the ideal time to start the clean-out. In fact, we sometimes have closings as quickly as 3 weeks after an offer is presented, so it is best to assume that you will not have much time to pack later and do the clean-out up-front.  This will also help your home show off its spaciousness and storage capabilities! If you are saving things for others (such as the pile of furniture I have stored in my basement for my adult children who I am sure are going to want my 30 year old furnishings someday!), then it would be advisable to find an off-site storage facility and move those items from your home (or more realistically, I would be happy to connect you to charities to come pick them up and give you a tax deduction in exchange – the reality is that those we save for probably really don’t want our stuff anyhow!)  If this all seems incredibly overwhelming to you (and you’re thinking you would rather stay put than face the inevitable clean out), I would be happy to connect you to a home organizer that can take on as little or as much as you don’t want to do! 

Once you feel you are “de-cluttered,” the next step toward selling your home would be to determine whether any repairs or improvements are needed or recommended.  I am happy to walk through your home with you in advance of your listing date and discuss what you might consider addressing and its likely impact on your bottom line.  Not ever seller wants to make repairs and improvements and ultimately that choice is yours, but the market data I will provide to you will help you decide whether its worth it to you to make the additional investment in your home.  If repairs are not possible, we will work on using the disclosure to make sure you are sharing the items upfront with the buyer and pricing accordingly.  This will protect you later from costly repairs if the inspector is the one to raise the issues. 

It’s a lot to do, but together we can make your 2019 real estate goals a reality!

 

244 Thorn Street

Sited in an idyllic Village neighborhood, this stately brick home offers unparalleled architectural detailing and an exceptionally large home (6765 square feet) with 7 bedrooms, 5 full baths and a large main level with remodeled kitchen as well as living, dining and family rooms plus den! If you are looking for a special home to put your signature on, 244 Thorn Street is ready for your custom touches!   An exceptional value at $795,000.

 

49 Woodland Road

Boasting newer kitchen and baths in the most sought after Village neighborhood, on a gorgeous tree-lined street with sidewalks to everywhere, 49 Woodland offers a unique opportunity for newer construction in the heart of Sewickley Village.  The main level master offers hard-to-find convenience – upstairs 3-5 additional bedrooms offer plenty of space for family and guests. The beautifully remodeled white kitchen opens to the family room and the light, bright sunroom, with 3 walls of windows overlooking the private backyard.  The three car attached garage offers another hard-to-come buy amenity in the Village, as does the finished lower level! $1,775,000.

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

It’s More Complicated Than It Looks

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!

439 Oliver

Located in one of Sewickley’s most sought after neighborhoods, this home is beautifully remodeled and offers three spacious finished levels of living space, including a main level bedroom suite! Gleaming hardwood floors unify the main and upper levels of the home. The newer kitchen is open to both the dining area and large family room with vaulted ceilings and features brand new granite countertops. Walls of windows overlook the beautiful backyard – French doors open to the private patio. A convenient mudroom provides access to the attached garage. Upstairs there are three bedrooms including the restful master suite with beautiful bath. The lower level includes a finished game room, full bath, fifth bedroom and a spacious storage/mechanics/laundry area. Fully fenced backyard with fire pit. Close proximity to all village amenities and schools. Freshly painted interior…move in and enjoy all that Sewickley has to offer. $689,000    Read More…

319 Scaife

Exceptional Sewickley Heights home will take your breath away with its unparalleled beauty. Sited on 5 private acres, it combines the authentic charm of a Sewickley Heights carriage home with modern amenities and stunning design.  Magazine perfect kitchen with top-of-the-line appliances and granite tops opens to a captivating dining room with fireplace and relaxing family room.  French doors open from the gorgeous living room, also with fireplace, onto the sprawling stone terrace, which spills out effortlessly onto the manicured grounds.  Enjoy coffee or wine relaxing under the wisteria-draped trellis. Incredible master suite with three walk-in closets and remarkable custom bath with radiant floors, Victoria and Albert soaking tub and large shower with custom glass enclosure.  Charming enclosed courtyard. Three car attached garage.  $2,150,000   Read More…

 

I’m ready to answer any questions you have regarding your real estate needs.
 
 
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

Giving Thanks

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!

A New Home for the Holidays

907 Nevin

Where else in Sewickley can you get an essentially new home with 4 bedrooms, 3.5 baths AND a 2 car garage for under $400,000?!  Top to bottom renovation to this adorable Village home! 4 bedrooms, 3.5 new, stylish baths, 3 finished levels, new 2 car garage. Incredible open floorplan unified by new hardwood floors.  New kitchen with white cabinetry, granite tops, stainless appliances. Doors open to large and inviting, private rear deck.  Move right in and enjoy! $389,000  Read More….

 

319 Scaife

Exceptional Sewickley Heights home will take your breath away with its unparalleled beauty. Sited on 5 private acres, it combines the authentic charm of a Sewickley Heights carriage home with modern amenities and stunning design.  Magazine perfect kitchen with top-of-the-line appliances and granite tops opens to a captivating dining room with fireplace and relaxing family room.  French doors open from the gorgeous living room, also with fireplace, onto the sprawling stone terrace, which spills out effortlessly onto the manicured grounds.  Enjoy coffee or wine relaxing under the wisteria-draped trellis. Incredible master suite with three walk-in closets and remarkable custom bath with radiant floors, Victoria and Albert soaking tub and large shower with custom glass enclosure.  Charming enclosed courtyard. Three car attached garage.  $2,150,000    Read More…

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

The Effect of Rising Mortgages

We’ve noticed interest rates are rising on mortgages.  What effect do you think that will have on our market?

You are correct – the fed raised the interest rates AGAIN this year, and have indicated that we need to be prepared for two more rate increases in 2018. Those increases are expected in September and December and many forecasters are expecting that rates will be over 5% by 2019.  The economy has been incredibly strong and unemployment is lower than it’s been since the 1960s (excepting one month in 2000).  With a surging economy, the fed is forced to raise rates in an attempt to keep investors interested in mortgages, control inflation and avoid a possible future economic crash.  Rates are ¾ point higher than they were last year.  Nonetheless, historically 6% is considered an excellent interest rate and they are still well below that!

With all of that in mind, today is as good as its going to get for years to come for mortgage interest rates.  So don’t procrastinate any longer!  If you are thinking of a move, there is no better time than now to find a new home and lock in your interest rate.  In September you will likely pay more for the same house over the life of your loan than  you would if you bought it roday.  What impact will these rising rates have on the market?  Some buyers will not be able to afford a home that they could have afforded previously – as rates rise all borrowers will qualify to borrow less and that lower number may or may not be enough for you to be able to buy the home of your dreams.  All buyers will pay more for their homes over the life of the loan than the could have had they purchased earlier.  Ultimately, higher rates could depress home values as buyers can afford less, but I do not see that happening in this market.  We just do not have enough inventory for rising rates to depress home prices…yet.  But if we ever bring supply in line with demand again, we may see rising rates soften home values.

Of course, as rates rise it becomes very important to shop your loan product.  Those who get two lender estimates save on average $1500 upfront and those that get 5 save $3000 upfront on average.  Most buyers will take the time to shop around for a new car, so why not take the same approach toward your mortgage. With rising rates, you will appreciate the  upfront savings!

Featured Homes

625 East Drive

The opportunity of a lifetime! All of the elements of the ideal Village experience merge beautifully in one home! Tastefully remodeled, elegant yet comfortable! Located on one of Sewickley’s finest streets. Built and maintained with impeccable attention to every detail. Richly appointed throughout. Beautiful kitchen loaded with amenities. Private study with richly molded walls and handsome wood-burning fireplace. Family room/morning room with arched windows flood the room with light. Restful owners suite with luxurious his and hers baths. Amazing dressing room with mahogany center island. Four to five additional bedrooms, three laundry areas, finished lower level with game room and home gym. Two-car garage with bonus room above. Beautiful, private grounds with large stone patio. $2,800,000

 

219 Orchard Lane

A spectacular Sewickley Village transformation!  Large two-story addition of 1000SF+ incorporates a new large family room, mudroom and luxurious master suite. This complete renovation included all new wiring, zoned central A/C added to the home, 2.5 new baths including a gorgeous master bath, addition of main level laundry and new kitchen featuring abundant white cabinetry topped with Quartz, stainless appliances, and large center island overlooking the large great room. New master suite includes vaulted ceiling, spacious walk-in closet with laundry chute, Fenced rear yard with patio.  $650,000

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

What About an Appraisal Contingency?

With all of the bidding wars happening in this hot market, should we put an appraisal contingency in our offer?

Appraisal contingencies are added to agreements when buyers are concerned that their offer may be over market value.  If you are getting a mortgage, they really aren’t necessary if you are putting 20% or less down on your home.  Your bank will need your new home to appraise so that your debt percentage is not greater than 80%.  If it doesn’t appraise, you will either have to throw in more cash or reduce the sales price of the home, or the bank will refuse to fund the loan.

If you are paying cash for your home, or have a small planned mortgage, your only protection from over-paying is to insert an appraisal contingency into your offer. If the home fails to appraise, you will have the option of terminating the agreement if you choose, or possibly re-negotiating the price.  While this may sound like a fool-proof option, when we are in a hot market, with limited inventory and limited options for buyers, the goal is to reduce the number of contingencies to make your offer more appealing, not to add more! When evaluating whether they want to take their home off the active market to work with your offer, a seller will weigh all of the components, and an appraisal contingency weakens your offer as it is one more hurdle the seller must overcome before they can proceed to closing.

There is a definite risk that in a hot market you could overpay for a home.  Homes are in some circumstances selling for tens of thousands of dollars in excess of the list price. Unfortunately, this may be what it takes to get a home.  Inserting an appraisal contingency will only weaken your offer and could cause you to lose a bidding war. The best course of action if you want to win is to ask your agent to prepare an analysis of comparable sales and use that to determine your best offer, leaving out the appraisal contingency and hopefully succeeding in your bid to buy a new home.

FEATURED HOMES

 

7 Harvester Court

NEW PRICE — Want more space between you and your neighbors? Your search is over!  This custom-built all brick colonial is sited on a nearly 2 acre lot, in a quiet, private neighborhood.  Just renovated, it features 3 new luxury baths, newer kitchen, new roof, new HVAC, new deck, new paint in modern aesthetic and more. Totally turn-key for you and your family! 4 bedrooms, 3.5 baths, 3 car garage, finished walk-out lower level.  $737,500  See More Details…

 

212 New England Place

NEW LISTING – Located on a quiet cul-de-sac in a prime Edgeworth location, this spacious colonial is loaded with amenities.  Classic details blend with modern.  Newly refinished hardwood floors unify the main level of the home. New kitchen with stainless appliances is open to dining and family areas.  Three walls of windows flood the family room with natural light and bring the backyard into this wonderful space. Four large bedrooms, two new baths on the upper level plus a finished lower level with full bath. $595,000   See More Details

 

 

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE, SRES
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

THE RISING INTEREST RATES vs. HOUSING MARKET

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!

FEATURED HOMES

73 Thorn Street
NEW LISTING — A wonderful renovation of this classic Sewickley Village Victorian! Offering modern amenities yet loaded with charm, you cannot beat the central Village location! Original details, including beautiful mantles, handsome moldings and a striking staircase anchor the home in history and balance the newer kitchen with stainless and granite and 4.5 newer baths, creating a home that seamlessly merges the past with the present. In addition to generous living and dining rooms and kitchen open to family room, the main level features a convenient laundry room. The upper two levels are home to five bedrooms plus two dens. The covered back porch is perfect for relaxing on warm evening and flows effortlessly onto the large lawn. Two car garage. Please join me for my open house Sunday, 1-4pm at 73 Thorn Street, Sewickley. $1,225,000

1 Oak Drive
NEW LISTING – Well-maintained brick Tudor-style home close to Sewickley Village. Spacious floor plan. Thoughtfully updated with quality renovations that have maintained the home’s character and original workmanship while including the desired modern amenities. Remodeled and expanded kitchen features custom cabinetry with granite tops, stainless appliances. Convenient mudroom. Three bedrooms including master and two remodeled baths. Lower level family room. Two-car garage, plenty of outdoor space including the charming brick patio! $475,000.  See More… 

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

A VALUABLE PIECE OF ADVICE FOR SELLERS

What rights do sellers have to keep buyers in a home sale agreement, once they put a home under agreement? If the buyer back’s out, do we get to keep their hand money?

Assuming the standard Pennsylvania Agreement of Sale is used to sell a home, a home seller has very few rights to keep a buyer in that agreement.  First, any home inspection contingencies must be satisfied.  Unfortunately, unless modified, buyers have the absolute right to terminate the agreement if there is anything at all on the home inspection that they are dissatisfied with, even if a seller is willing to repair that item or items.  Nothing is more disheartening for a home seller than to put their home under agreement, only to lose the deal because of inspection concerns.  This is a result that can be mitigated by home sellers.  All home sellers can, and should, have their homes pre-inspected to help avoid the inspection termination scenario.  Yes, if the inspector finds issues, they need to be repaired or disclosed.  But this will be the case anyhow once the buyer finds them, and they will!  All too many home sellers adopt the position “we’ll address that if the buyer asks.”  The problem with that approach is that a seller may never get the ask – they may just get the termination letter.

Once the inspection hurdle is overcome, there may be additional contingencies that buyers have to overcome before a seller is close to having a secure agreement.  A buyer may have to get financing, and if they place a mortgage contingency in the agreement and a lender refuses to give them a loan for any reason, they can terminate the deal. The most frequent cause of mortgage issues is a failure to appraise.  An appraisal contingency can be a contingency in its own right, and if a home fails to appraise, the buyer will have the right to terminate the agreement.  In this market of low supply and high demand, some sellers of premium properties are extracting market high prices for their homes and appraisal failures are a real risk.  If this happens, a seller will need to consider whether to reduce the price or put the home back on the market.

Whenever a buyer terminates under a contingency contained in an agreement, the buyer receives a full return of the hand money and the seller’s only recourse is to put the home back on the market.  So sellers, do yourself a favor, pre-inspect your homes.  The $500 you will spend is the best insurance policy your money can be in maximizing your chances for a successful sale!

FEATURED HOMES

108 Grouse Lane

NEW LISTING – Beautifully remodeled colonial on 1.2 acres close to Sewickley Heights Golf Club! Hardwood floors unify both levels of this spacious home. The kitchen has been nicely remodeled.  With three walls of windows overlooking the park-like backyard, the breakfast room is awash in natural light! Glass doors open onto the back patio and deck. Two wood burning fireplaces.  4 bedrooms. Exceptionally well cared for and move-in ready! Open this Sunday 1-3pm.  $725,000.  See More…

 

16 Highview Drive

NEW LISTING – Just in time to plan for your most fun summer yet, 16 Highview offers a beautiful inground pool and 3.8 acres of privacy, yet sited in a mature Sewickley neighborhood.  With over 4100SF of living space plus a finished lower level, the home features an open floorplan ideal for entertaining.  Newly remodeled kitchen, 3 car garage, main level bed/bath for guest, walk-out lower level, sauna, wine room, screened porch & more!  Remodeled throughout and ready for immediate occupancy!  Open this Sunday 1-3pm. $695,000.   See More….

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

WHY BUYERS ARE NOT BUYING

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

FEATURED HOMES

7 Harvester Court –  Want more space between you and your neighbors? Your search is over!  This custom-built all brick colonial is sited on a nearly 2 acre lot, in a quiet, private neighborhood.  Just renovated, it features 3 new luxury baths, newer kitchen, new roof, new HVAC, new deck, new paint in modern aesthetic and more. Totally turn-key for you and your family! 4 bedrooms, 3.5 baths, 3 car garage, finished walk-out lower level.  $775,000.  See more…

 

141 Beech Ridge Drive – Spectacular 22,000+SF estate nestled on 8 private acres in Sewickley. Remarkable newer custom construction.  Half-court indoor basketball court, full racquetball/squash court, complete locker room facilities including sauna, 60’x30’ heated in-ground concrete salt water pool w/ stone waterfalls, patio w/ outdoor fireplace, 5 bedrooms, 5 full & 4 half baths, 9 fireplaces, 6 garage spaces, two kitchens, wine room, roof-top observation deck, new home theater.  Simply remarkable! $4,500,000  See more…

 

 

BUYERS ARE AT THE READY!

What is going on in our market?  It seems things are selling fast!

A very brief update on the status of our housing market: as predicted, our low inventory for the past several months has created a log jam in our housing market.   As of today we have only 66 homes in our active inventory, while the norm this time of year is closer to 200!  Dozens of buyers are lined up in every price range waiting for their perfect home to come on the market.  As a result, new introductions in the Village are selling close to or at asking price, and more often than not, without a mortgage contingency.  Many are receiving multiple offers.  Buyers participating in this market feel like it is the California market here in Sewickley!

Why is this happening?  It’s hard to say.  The inventory shortage extends across most of the communities in our area that sit in a top rated school district.  People are just not moving out.  This could be caused by the fact that there are extremely limited options for “downsizing” if you are in your empty nester years.  It could be that Pittsburgh has been steadily growing for years and it is just catching up to us.  It could be that we cut new housing starts too sharply after the recession and we aren’t keeping up with demand.

What should a buyer do in today’s market? First, get yourself fully pre-approved (not just prequalified) if you need a mortgage.  You need to get comfortable with the fact that you might have to waive your mortgage and appraisal contingencies.  Second, be ready to make a very fast decision if a home comes on the market – do not expect that you will have more than a day to decide. It is very much a seller’s market and not a good market at all if you are buying, but if you need a house, it’s the market you are in.  Consider looking “up the hill” – we have some amazing homes available offering great living space at significantly better values.

And once again, if you are thinking of selling, give me a call right away and lets design a strategy to maximize your return in this amazing seller’s market!  Put my  19 years of full-time experience and dedication selling Sewickley’s wonderful homes to work for your personal benefit!

FEATURED HOMES

515 Spanish Tract

NEW LISTING — Stay fit & have fun year round – the new indoor pool at 515 Spanish Tract is masterfully designed to harmoniously blend with the home and its surroundings – low maintenance, chemical free copper ionization filtration system takes the work owning a pool!  Simply spectacular renovation of the home – it nestled on 7+ private acres in close-in Sewickley Heights.  Expansive windows bring the stunning natural surroundings into every room. Open floorplan, with new kitchen, baths, flooring, windows, roof, generator… four outdoor venues to enjoy the beauty of the location from.  Turn-key ready for you! $1,950,000  See More….

16 Highview Drive

NEW LISTING –   Just in time to plan for your most fun summer yet, 16 Highview offers a beautiful inground pool and 3.8 acres of privacy, yet sited in a mature Sewickley neighborhood.  With over 4100SF of living space plus a finished lower level, the home features an open floorplan ideal for entertaining.  Newly remodeled kitchen, 3 car garage, main level bed/bath for guest, walk-out lower level, sauna, wine room, screened porch & more!  Remodeled throughout and ready for immediate occupancy!  $695,000.  See More…

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

2018 and TAXES- Oh My!!

Any updated thoughts on the new tax legislation?

 

The new tax legislation seems to be on everyone’s mind these days, and seems to be crowding out Christmas cheer a bit.  While I do need to advise you to consult your personal tax accountant, I will tell you I have been busy prepaying my 2018 property taxes.  Under the new legislation, taxpayers will only be able to deduct a grand total of $10,000 of property and income taxes combined.  In our area, property taxes are higher than in many parts of the country, so many people will easily exceed that limit.  Paying 2018 property taxes in 2017 helps to insure the full value of their deductibility.  Of course, 2018 tax bills have not been issued yet, but if you find your 2017 bills and make a couple of calls, they will be able to tell you how to proceed if this interests you.  The taxing bodies are likely thrilled right now with the new legislation – rather than chasing late payers they are receiving their money well ahead of schedule!  Of course, if your bank escrows your taxes for you, this may not be an option you can take advantage of.

I’ve also taken the time to pay my 2017 4th quarter Pennsylvania and local income taxes now, for the same reason.  While not due until January 15th,  the $10,000 limit on the deductibility of property taxes and state/local income taxes combined will result in lost deductions for many.  This tax planning is only useful right now, when the old limits (or lack thereof) still apply through 2017.

As far as the legislation itself, I am pleased that congress raised the mortgage deductibility limit to interest on mortgage debt up to $750,000.  Interest on debt on second homes is no longer deductible (unless you use it as an investment property, in which case it can offset your rental income), and interest on home equity lines of credit will no longer be deductible.  This will definitely affect the way consumers choose to structure their home buying financing.  We will be thoroughly digesting the bill so that we can help consumers make the best financing decisions to take advantage of the tax breaks we do have left.

The $10,000 limit on the deductibility of property and state/local income taxes is not ideal, particularly because of the higher property taxes we have in the region.  There is a possibility that the limitation will make higher end homes harder to sell, but I doubt that. In the end, consumers will have to have a mindshift and think less of their personal residences as tax breaks and see them for what they really are – a home for their family to come home to every day – their personal sanctuary from what can sometimes feel like a crazy world.  And when we see our homes that way, the small piece of our property taxes that Uncle Sam no longer “pays” will seem far less important than it does in the abstract.

Featured Homes

141 Beechridge
Spectacular 22,000+SF estate nestled on 8 private acres in Sewickley. Remarkable newer custom construction.  Half-court indoor basketball court, full racquetball/squash court, complete locker room facilities including sauna, 60’x30’ heated in-ground concrete salt water pool w/ stone waterfalls, patio w/ outdoor fireplace, 5 bedrooms, 5 full & 4 half baths, 9 fireplaces, 6 garage spaces, two kitchens, wine room, roof-top observation deck, new home theater.  Simply remarkable! $4,500,000     See more photos and details….

7 Harvester Ct
Tired of looking at one “project” after another for a home that is “move in ready”? Your search is over!  This custom-built all brick colonial was just renovated with 3 new luxury baths, newer kitchen, new roof, new HVAC, new deck, new paint in modern aesthetic and more. Totally turn-key for you and your family! 4 bedrooms, 3.5 baths, 3 car garage, finished walk-out lower level, nearly 2 acre lot. $775,000.   See more photos and details…

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com

PROPOSED TAX LEGISLATION vs. HOMEOWNERSHIP

What impact do you think the proposed federal tax legislation will have on homeowners?

For those of you who are unaware, the proposed tax legislation makes several changes to itemized deductions that will impact many homeowners.  First, the property tax deduction will be limited to $10,000.  In Sewickley borough, if your tax assessment is above approximately $350,000, you will see an increase in your federal income tax as a result of this itemized deduction limitation.  Additionally, while existing mortgages are grandfathered, interest will only be deductible on new mortgages of less than $500,000.

The National Association of Realtors believes these new changes could put home ownership out of the reach of many and nullify the home ownership incentive for all but the top 5% of our nation.  Home ownership is already at a 50 year low nationwide.  For many Americans, a home is the largest investment they will ever own.  Studies have also shown that at the end of the day, the net worth of a homeowner is, on average, a shocking 45 times greater than that of a renter, demonstrating how important it is to incentivize home ownership so that Americans have the needed nest egg when they retire.

My predicted impact on our local housing market is that it will soften prices over $350,000.  Without the benefit of the tax deductibility of property taxes over $10,000, mid-market buyers will qualify to buy less than they can today, and it will have a downward pressure on prices overall.  With the severe inventory shortage we have right now, this is not likely to be immediately evident, but it will likely impede the long-term growth rate.  The cap on the deductibility of interest on new mortgages over $500,000 will have a much larger impact on the market overall.  Homeowners with large mortgages will be disinclined to make the “choice” moves we are so accustomed to here in Sewickley, because a move will mean they lose the deductibility of a significant amount of interest on their grandfathered mortgage.  This will only exacerbate our inventory shortage as homeowners will be likely to just “stay put” and take advantage of the deductibility of interest on grandfathered mortgages.  Additionally , for homes priced over $550,000, buyer affordability will drop further as carrying mortgages over $500,000 will be noticeably more expensive, with the potential of exerting further downward pressure on market appreciation.  Its hard to know how any of this will help us, but then, I am not an economist – I must be missing something!

FEATURED HOMES

7 Harvester Court
Want more space between you and your neighbors? Your search is over!  This custom-built all brick colonial is sited on a nearly 2 acre lot, in a quiet, private neighborhood.  Just renovated, it features 3 new luxury baths, newer kitchen, new roof, new HVAC, new deck, new paint in modern aesthetic and more. Totally turn-key for you and your family! 4 bedrooms, 3.5 baths, 3 car garage, finished walk-out lower level.  $775,000.  Learn more…

180 Summerlawn Drive
Beautifully remodeled open concept 17 year old home on ½ acre wonderful lot in a delightful Sewickley neighborhood close to Village. Four finished levels of living space including finished walk out lower level. Kitchen with new stainless appliances open to family room.  Main level laundry.  Large master suite. Four bedrooms, 3 full and 2 half baths. Third floor great room.  New roof. $599,000. Learn more…

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
HOWARD HANNA
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238
kbarge@howardhanna.com