Buying an Investment Property

We would like to buy an investment property – something that we can fix up and then rent.  Any tips?

Real estate rental properties can be a great way to diversify your investment portfolio and create an income stream for retirement, if you hold your properties long enough! During your ownership, if you have invested properly, the tenant’s rent should be covering your mortgage and taxes and maybe even generating some cash.  Over time, the rent will have purchased you a home and the income stream becomes cash in your pocket, or the home an asset you can sell and invest in something else (Retirement home? Child’s education?)

However, before you run out and start buying investment properties, there are a few things you should consider beyond the financial aspects. First, consider where you want the property to be.  Lower priced properties may not be in our best school districts, and while there are always people looking to rent, the rents will be lower.  Also consider the risk of non-payment.  The lower rent properties may also bring tenants with riskier jobs which could increase the possibility of having to evict tenants.

Consider your own location as well.  Do you want a long drive to the property if there is an issue?  Are you planning to stay local or might you be transferred, raising the question of whether you should sell the property?  If you are not planning to manage the property yourself, how much will property management cost you and how will that impact your profits?

Finally, and most importantly, consider how much “fixing up” you are willing to do.  Investors frequently underestimate the amount of time and money it will take to create a property that is actually desirable to renters.  You need to anticipate dedicating a significant amount of your personal time if it is a project.  The concept of calling a general contractor will deeply erode your profits – the best investments are the ones you are personally involved in at a high level. Also keep in mind when making your improvements, this is not going to be your personal home.  Your choices should be what the mainstream market wants and should be the least expensive choices that still convey an appropriate level of quality. Investment properties should not be your opportunity to put your personal stamp on a home – save that for the home you plan to stay in! If you would like to consider an investment property further, give me a call – I can help you with that! 412.779.6060

52 Timberhill – New Price!! 

Amazing privacy on 10+ acres in Sewickley Heights, this custom designed and built home offers 11,000+ SF of exceptional living space set on a stunning parcel of land.  Gorgeous outdoor venues are ideal for warm weather entertaining, including resort-like pool and stunning patio with fireplace.  Additional exceptional features include 3 bedrooms including luxurious master suite and nanny/in-law suite, soaring ceiling lines, massive stone fireplaces, finished lower level gameroom and exercise studio, 5 car attached garage, huge custom kitchen open to family spaces and more!  An exceptional opportunity.  $5,900,000

 

22 Woodland Road – New Price! 

Outstanding opportunity to live on Woodland Road in Edgeworth!  The contractors just left this handsome brick colonial!  With newly remodeled kitchen and hall bath, this beautiful home is move-in ready! 5 bedrooms, 3.5 baths, 2 car attached garage, large eat-in kitchen, spacious family room, beautiful sunroom, main level laundry and more!  In an ideal neighborhood close to Village shops and amenities.  $1,025,000

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

Giving the Buyer Space

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!

 

1410 Pennsylvania Ave- NEW PRICE

Looking for a change of pace? How about a move into the city? Rare Gothic Revival
home on Pittsburgh’s North Side showcasing remarkable architectural features and
grand rooms. Meticulously renovated. 11’ ceilings on main level, hardwood floors,
grand staircase, impressive fireplaces and woodwork. Remodeled kitchen with
48” Wolf commercial grade gas range, well-designed and appointed butler’s pantry/mud room.
Master suite w/ dressing room is a dream come true! Beautifully remodeled bath includes
marble floor, soaking tub, custom shower w/ seamless glass enclosure. Three add’l bedrooms
and two new baths plus upper level laundry room, game room. Professionally landscaped yard,
private back patio, covered front porch. 2 car garage. $659,000   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. $665,000  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

Neutral is the Way to Go!

Everyone says we need to “neutralize” our home before we try to sell it, but what does that mean?

If you watch HGTV or read my weekly articles, you likely know how important it is to neutralize your home before you sell. But what exactly does that entail? Paint color is obvious. Your home is far more likely to sell for top dollar if its painted in a neutral color palate. This does not mean your home must be nothing but white. It does, mean, however, that you should remove most strong colors in favor of “colored” neutrals – colors such as greige or light gray. A colorful room or two is fine as long as the color was chosen in the past couple years (trends in color change quickly, but when you live with a color daily and are not in the design business, you probably don’t realize when a color is no longer “in”).

Neutral colors in floor coverings is also key. Colored carpets are extremely difficult to sell. Be careful with ceramic tile –when it goes out of style, it is painfully obvious that you have dated tile and its expensive to replace. However, neutralizing a home goes beyond paint color and floor coverings. Consider the age of your most likely buyer. Buyers these days in their 20s, 30s and 40s as a general rule favor clean lines to florals. If you have floral drapes, silk flower arrangements or large floral prints on your upholstery, this could be a real turn off to a buyer even though these items do not convey with the home. The impression says dated even if the structure itself is not. This is pretty simple to address, however. Pack these things up – you are moving – get a head start.  Drapes are great for decorating but unless they are very recently installed, they are unlikely to help your sale – most buyers prefer to see your windows. Slipcover furniture if it’s fabric trends toward yesteryear’s design styles.

Neutralizing also goes to removing personal effects – family photos being the most obvious. And of course, its important to neutralize odor. If you have pets, keep litter boxes perfectly clean and pet beds, blankets and toys frequently laundered. Have a friend double check – you should not be able to tell you have a pet when you enter your home. If you smoke, don’t smoke inside. If you like to cook with spicy food, avoid it while your home is on the market. If musty odors emanate from your basement, run a dehumidifier 24/ 7. If your refrigerator stays with your home, make sure it is clean and smells fresh.

A neutralized home may seem impersonal to you, but try to remember, you are moving! While it may not be your style, it is far more likely to attract a buyer and a good price!

439 Maple Lane New Price – Its time to think summer! It might be cold outside, but come spring you will love the endless hours of family fun you can have in this incredible pool complex! Heated pool, hot tub and bar will make your new home party central! A top-to-bottom remodel of this timeless Edgeworth colonial, with gorgeous new white kitchen with granite tops open to stunning dining room. Hardwood floors unify great room, study, entry hall and mudroom. Up to eight bedrooms, 4.5 baths, 3 car detached garage. $1,275,000

 

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

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

Selling Made Easy

Selling our homes seems like it will be a very stressful endeavor.  Is there any way to make it any easier on us?

Once you have lived long enough, you realize that if there is something to be done, there is usually an easy way and a hard way.  When it comes to selling your home, why not make it easy? If you make it easy, you are far likelier to have a successful transaction.

First and foremost, make access to your home easy for buyers.  Use a lockbox and always be ready to show.  Busy agents with serious buyers don’t have time to track down keys held by listing agents, or worse yet, schedule showings around your listing agent’s schedule. You can’t sell if you don’t show – make it easy with lockbox access (which notifies your agent immediately every time it is accessed) and be ready to accommodate last minute showing requests.

Make negotiations easy.  When you do receive an offer, do not get upset or offended.  Every buyer approaches negotiations differently.  Some will need to give you long letters explaining their analysis of value.  Don’t take it personally – just understand that it is a unique opportunity to understand how buyers perceive your home.  If one buyer is bold enough to tell you, the chances are there are others with the same concerns.  While you likely put your heart into the home, you are leaving and need to detach.  Be pleasant and non-defensive in your response and try to focus on the one or two points in the offer that concern you the most.  The more flexible and good-natured you appear, the easier it will be to get and keep the buyer in the deal.  Be easy to reach during negotiations as well.  The more protracted the negotiations, the greater the chance the buyer’s interest will wane and you will lose the deal.

Make inspections easy.  I have said this many, many times, but if there are conditions that exist that are called out by the inspector and they were not on your disclosure, you should expect to pay for them or lose your deal.  You can make this very easy on both you and the buyer – have your home pre-inspected – then a buyer can make an offer knowing the condition at the time of offer and you should sail through the inspection.

Sound easy?  It is!  Keeping these simple concepts in mind will make your home sale much easier.

 

120 Fox Hill

NEW LISTING!!!  Sited on a 1.4 acre park-like lot with gorgeous views of the Sewickley Heights golf course, this fabulous custom built colonial has been remodeled top-to-bottom and features stylish kitchen and baths, open floor plan filled with natural light from walls of windows, finished lower level gameroom, new roof, new driveway, newly refinished floors, new lighting and so much more! $685,000.  See more…

 

 

213 Chestnut Road

NEW LISTING!!!  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 gameroom. Flat backyard, two car detached garage.  A very easy walking distance to Village shops and restaurants. $825,000   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

The Pre-Inspection Power

I’ve heard that agreements on many homes have fallen through lately from home inspections – why is that?

Our market has traditionally been one where buyers know they are buying old homes and allow the seller some leeway in not presenting a “perfect” home from an inspection standpoint. However, in many parts of the country, this is not the case. Sellers are expected to remedy all issues noted by home inspectors prior to closing. As more and more people migrate here from other parts of the country, our prices are going up, but so are the buyers’ expectations as to a seller’s responsibility for concerns discovered on a home inspection. At the same time, inspectors are getting significantly more particular. And so yes, it is absolutely possible to have purchased a home only two years ago and have new concerns arise that clearly existed and were overlooked when you bought your home. And yes, it is equally possible that you will be expected to fix them and if you refuse, your sale might fall through.

This can often leave a seller feeling like they are the unlucky one who got stuck holding the “hot potato.” As the years pass, the list of “hot button” issues mounts and if you are the owner when the issue is discovered, you will be the one paying the bill even though the home was bought and sold many times in advance of your ownership. These hot button issues include items such as old sewer lines, radon, mold, damp basements, lead water lines, asbestos (fireplace inserts, duct tape, pipe wrap or flooring) knob and tube wiring and pushmatic electric panels. If your home has any of these issues, you should figure you will be the one footing the bill and address them before they become an issue on a home inspection.

The best way to prevent an inspection fall through or an unexpected bill for defects is to have your home inspected before you put it on the market. A pre-inspection will allow you the opportunity to fix those items that can be fixed and disclose the rest to save yourself from a laundry list of requests. Be sure not to ignore the small stuff that comes up or that you know is wrong. For example, when I list a home, I specifically ask sellers if all of their windows open, stay open, shut and lock, and if any are cracked or have broken seals. Sellers more often than not disclose no issues with their windows and yet it is one of the most frequent inspection deficiencies. Take the time to do your homework – get your home inspected – repair or disclose any possible concerns – and save yourself from a long last-minute repair list and potentially even from losing your sale.

518 Irwin Drive –  New listing!

One of Sewickley Village’s most spectacular homes, this classic estate is majestically sited on a nearly one acre lot within easy walking distance of Village amenities – an oasis in the middle of our vibrant walking community. Beautifully appointed and maintained, it showcases rich architectural elements, including a breathtaking spiral staircase that connects all four finished levels of this amazing home. Incorporating an updated design aesthetic, this home seamlessly interweaves its historic architectural beauty with modern amenities including the beautiful huge kitchen open to the fabulous family room, mudroom connecting to the heated garage, “homework” room adjacent to the kitchen, finished lower level gameroom and home gym, and above-garage guest suite. A very special Sewickley Village opportunity. $2,900,000  See more…

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 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 Top Dollar Might Start with TV

What do you think about all of the TV shows that focus on home buying and selling homes?

If you follow my column, you have undoubtedly noted me mentioning for what seems like years now that our market is hot and our inventory has never been lower.  It certainly couldn’t be a better time to sell.  You may in fact have just heard that your neighbor’s home sold for top dollar in record time.  How do you make that happen?  Start by watching more TV!

Surprising advice, perhaps, but TV sets our style expectations and our aspirations of how we want to live our lives.  Your potential buyers are watching TV and then coming to your home and expecting to see what they saw on TV.  Want to make the most money?  Meet their expectations!

This is easy to do if you also watch a healthy dose of HGTV.  There you will quickly find the latest trends and tips on how to achieve them in a cost-effective manner.  You will see what home designers are pushing and know what buyers will be looking for in your home.  House Hunters is a particularly good show to learn from.  You will get insight into buyers’ thought processes – you can listen in on their conversations and take note of the factors that affect them in both  positive and negative ways.  Armed with this information, you will be ready to spring into action and create a home that buyers are instantly attracted to.  And why are they attracted?  Because they saw it on TV!

As a full-time real estate broker, every day my job lives like an episode on House Hunters.  Through countless hours listening to my clients as they evaluate potential homes, I am easily able see how HGTV has greatly impacted the home selling process.  Those sellers who choose to take to heart the lessons espoused on HGTV are rewarded with more money in less time.  They create instant attraction by making their homes appear as if they were pulled straight from an episode of HGTV.   So whether you plan to sell next month or next year, start watching more TV, put the advice into action and pocket more money when you sell!  And if you’re not a fan of these shows, give me a call and I will come out and give you an abbreviated version as it applies to your home!

439 Maple Lane – New Price!

Its time to think summer!  It might be cold outside, but come spring you will love the endless hours of family fun you can have in this incredible pool complex!  Heated pool, hot tub and bar will make your new home party central! A top-to-bottom remodel of this timeless Edgeworth colonial, with gorgeous new white kitchen with granite tops open to stunning dining room.  Hardwood floors unify great room, study, entry hall and mudroom. Up to eight bedrooms, 4.5 baths, 3 car detached garage. Open Sunday 1-4pm. $1,295,000  See more…

 

1432 Beaver Road

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...

QUICK SEARCH

I’m ready to answer any questions you have regarding your real estate needs.