What to Expect When You’re Inspecting

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 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.

Featured Homes

215 Pine Road

Incredibly charming and perfectly remodeled Edgeworth brick colonial sited on a large level lot, close to all Village amenities and Sewickley Academy.  Beautiful newer kitchen, huge living room, inviting dining room and main level guest room complete the main level. Finished lower level includes full bath. Three additional bedrooms on the upper level.  $599,000

 

 

212 New England Place

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 rom 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

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

When Is The Right Time To Buy Or Sell?

We have found a new home that we want to buy, but the seller can’t close until late this year.  Should we put our current home on the market now or wait until we get closer to the closing date for our new home?

We are currently experiencing an exceptionally strong spring market!  I have not seen a better time to sell in recent years! So now would be an excellent time to list your home for sale.  However, if you do, you need to expect that your buyer is unlikely to wait for many months to close.  Rate locks are generally only good for 60 days, so any closing beyond that exposes the buyer to the possibility of interest rate hikes.  Additionally, this time of year most buyers are looking to occupy their new homes in time for school to start in the fall.  So if you list your home now, you need to be prepared for the possibility of an interim move to a short-term rental.  You may view this as the safest option because if your home does sell quickly requiring a move to an interim rental, you will at least know that you will not be stuck carrying two homes at one time!

Your other option is to wait until closer to the closing on your new home to put your current home on the market.  This would certainly be the more convenient option – you would not have to find an interim rental property and store your personal effects.  However, while homes do sell in the fall market, it does not have nearly the momentum that the spring market has.  If you choose to wait and list your home in the fall, it is possible that you will need to carry two houses until the spring 2018 market begins.  I also don’t have a crystal ball to predict whether the spring 2018 market will have the same momentum that the current market has.

In the end your decision will need to be based on which risk factor concerns you more.  Would you be more unhappy if you had to spend interim months in a rental property because a buyer this spring needs your house now, or would you be more unhappy if you had to carry the cost of owning two homes for several months?  The answer to this question should guide you as to when is the appropriate time to list your home for sale.

FEATURED HOMES:

 

7 Harvester Court

 

7 Harvester Court
Looking for a home delivered to you on a silver platter?  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

 

 

 

309 Pink House Road

309 Pink House Road
Privacy and village proximity combine perfectly at this fabulous custom designed and built newer home.  Recently remodeled in a stylish palate, the open concept floorplan features exceptionally large rooms, walls of widows flooding the home with natural light and hardwood floors unifying the main level.  The upper level is home to 4 bedrooms, all with en-suite baths.  The walk-out lower level houses a 5th bedroom, gameroom and gym area. French doors spill out from the great room onto a stone patio and the private 9 acre lot beyond.  $1,595,000

 

 

As an Associate Broker at
HOWARD HANNA REAL ESTATE SERVICES,
Kathe Barge, CRS, ABR, CNE, is ready to answer any
questions you may have regarding your real estate needs.
Feel free to contact her at the office (412) 741-2200 x238,
or on her mobile phone (412) 779-6060.

Contingency – Buyer’s Side

Dear Kathe,

Is it possible to buy a new home contingent on selling our current home?

It certainly is possible to make an offer on a new home contingent on selling your current home! However, an offer with a home sale contingency is not a strong offer. You are asking the seller to stop marketing their home in the hopes that you will sell yours, which can feel like a big gamble to the seller. If this is the direction you need to go in, there are some important tips to keep in mind.

  • Sellers are more likely to consider your home sale contingency if their home has been on the market for a long time with no other interest, if we are in a slow market season (fall) and they are unlikely to have any other serious interest in the short term, and/or if you are offering them a very high price which makes it worth taking a chance on you. If you want your offer with a home sale contingency to succeed, make them an offer at or close to asking price.
  • Sellers are more likely to consider your home sale contingency if your home is already on the market and you can show that it is priced well for a quick sale and is getting significant showings. If you want your offer with a home sale contingency to be accepted, don’t list your current house at a top-of-the-market price.
  • Sellers are more likely to consider your home sale contingency is you choose the type of contingency that allows them to actively market the home to other buyers. Of course, from your perspective you would prefer to lock the house up, but that is unlikely to happen. The right to continue marketing contingency at least allows you to know that you can buy the home at an agreed upon price as long as you get yours sold before another buyer comes along.

Of course, two better options include getting your home on the market and sold so that you can make an offer contingent only upon it’s closing, or exploring options with a mortgage broker that would allow you to make a non-contingent offer.