Knowing Your Home’s Worth

It seems prices are all over the board these days.  How do we figure out what our home is worth?

 

There are many factors that go into determining a home’s value.  The first, most important thing to keep in mind, however, is that it’s not what you think. To rephrase, what you think the value should be, or what you think you need to get for the home to either recoup your investment, reimburse you for time spent renovating, or get you what you need to move to your next home is not a factor in determining value.  A home will sell for what a buyer thinks the home is worth – not what a seller thinks its worth.  So how do you determine that number?

Value is determined first and foremost by comparable sales.  What other homes have recently sold for is the most relevant gauge of what the market will bear for your home.  If you haven’t been in the homes, however, you will need to rely on a professional to make the comparison for you.  Factors to be considered include size of lot, usability of lot (flat is better) and location of the property both in town and as it relates to other homes (currently, closer to the center of the Village will bring more money, across the street from a home in disrepair, less).  Also considered are above-grade square footage on the main two floors (finished lower levels and third floors add some value but generally not at the same square footage price as the main two levels) and configuration of rooms (do you have an eat-in kitchen, a family room open to the kitchen, a dedicated master bath).  Finally amenities are considered.  How many garages do you have and are they detached, integral or attached (the most valuable)?  How long ago was your kitchen and bath updated?  Under 10 years?  Do you have stainless and granite?  Have you removed all of your wallpaper?  All of your old brass?  All of your colored carpets?  Homes sell every day with dated amenities, but their existence definitely affects price.  When looking at other homes that have sold, it is important to have a realistic understanding of how your home really compares to those homes.

The investment you have made in the home also has some relevance. If you have made significant improvements (beyond a fresh coat of paint and new carpeting), there is a high likelihood that you will be able to recoup some of your investment. It is important to prepare a detailed list of those improvements to substantiate value to potential buyers.

Other homes currently available for sale, however, are not a particularly relevant factor to look at. Many of our homes sell for substantially less than the sellers were originally asking, and while our average community realization is 89% of asking price, there are homes that have sold at nearly half of their original asking price. Competing listings are only relevant to determine how much competition you will have – not how much your home will sell for.

In the end, its what a buyer thinks, based on where other homes are selling and how yours compares, that will determine where your home will sell, and all of the marketing in the world will not change that reality!

63 Thorn Street

Expertly remodeled, 63 Thorn paints a modern landscape on a charming traditional palate to create an exceptional home for the millennium home buyer. 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.  $1,450,000   See more…

 

22 Woodland

Located on one of Sewickley’s most sought-after streets, this classic brick colonial has been nicely updated and maintained.  Hardwood floors unify the upper two levels of the home. The lower level offers additional finished living space.  Large eat-in kitchen opens to spacious family room and incredible sunroom with floor-to-ceiling windows. Exceptional living room with fireplace. Convenient main level laundry. Fabulous new slate roof!  Gorgeous yard backs to woods.  Garage is attached by breezeway.  $1,000,000  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 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

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…

 

 

KEEPING PROPERTY TAXES IN PERSPECTIVE

We are distressed about the property taxes in the Sewickley area.  We are qualified to buy well above a price point that comes with a level of property taxes we are comfortable affording.  Any thoughts to share?

You are not alone in your concern about our local property taxes.  They are high when compared to same value homes in many states.  But they are commensurate with property taxes on same priced homes in the other top Pittsburgh area school districts.  If you want great schools, its just a cost of being in a top district.  And if you don’t use our schools, being in a top school district will still provide steady appreciation of what is likely one of your largest assets – your  home.

If you are not from Pennsylvania, it might help to frame property taxes as part of your larger tax picture.  Our PA state income tax rate on individuals is only 3.08% — much lower than most states.  We also do not have sales tax on food or clothes here, which adds up to even more savings.  Our yearly vehicle fee is also only $41 – also far lower than most states.  Yes, property taxes in highly rated school districts can be high, but overall this is a lower cost area to live in.

Additionally, if you itemize deductions on your federal tax return, there may be a tax savings for you associated with the deductions of your property taxes – they might not actually cost you as much as you think – your tax advisor can help with this.

In the end, most people spend a lot of time in their homes.  Your home should be something you love coming home to, love spending time with family and friends in.  I suggest you do not isolate out property taxes as the bad guy keeping you from the home you love, but rather look at your entire cost of ownership – mortgage, taxes, insurance, utilities, maintenance  — and if the overall package looks manageable for a home you love, go for it!

FEATURED HOMES 

Lot D Sycamore
Only one lot remains in this new subdivision in Osborne!  The lot is .46 acres – build your Sewickley dream home – a unique opportunity in Sewickley! Bring your own builder! Pre-paid Sewickley tap in fee conveys with the lot.  Seller will credit $5000 toward utility hook-ups. $77,500.   Click here to learn more about this opportunity!

928 Blackburn
This immaculate Sewickley Heights home was transformed from an historic barn just two decades ago!  Private 5 acre lot backs to the Allegheny Land Trust. Main home features 4 bedrooms, 3.5 baths, expansive great room with soaring ceilings and wood-burning fireplace. The property also conveys with a newly remodeled guest cottage with 3 BRs, 3baths. $1,050,000.  To learn more about this incredible one of a kind home, click here.

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

WHAT TO EXPECT ON INSPECTIONS

We just completed a home inspection and submitted our requests to the seller.  They did not respond well and felt we were too comprehensive in our list of requests, although they were all items the home inspector pointed out as issues in his report?  What are we to expect?

The home inspection process is as individualized as the people buying the homes.    Some sellers are so eager to sell their homes that they will gladly cede to your every demand.  Some homes are so well priced and so well received by the market that the sellers are willing to do virtually nothing with respect to inspection requests.  How your sellers respond will likely depend on how badly they want to sell to you, balanced with what they think their chances are of a sale to another buyer in the near future.  But there are a few guidelines to keep in mind when evaluating what to ask for on the home inspection and how to weigh the seller’s response.

Anything the seller has called out on the disclosure should not be part of your inspection requests – you should have taken these conditions into account when you were making your offer.  For example, if the seller has disclosed that the furnace is at the end of its useful life, it is not appropriate to ask for the seller to pay for a new furnace.

If the condition was easily observed when you visited the home, you should also have taken it into account when making your offer and not be raising the issue now.  For example, if you noted that the front sidewalk was badly cracked when you saw the home, that should have been addressed in your offer and you should not try to renegotiate price based on that condition after the inspection.

Finally, you should use some materiality standard for your requests.  Some buyers use a health and safety standard and focus on items that could put their health or safety in danger, such as electrical or radon problems.  Some use a major defects threshold and focus on items that are expensive to repair.  But as a general rule, it’s a good idea to let small items and maintenance items go, such as caulking bathtubs, tightening loose toilets and installing handrails on basement stairs (which no one except the home inspector cares about anyhow!)  If you focus on what really matters, you are more likely to establish a positive dialog with your seller and end up with a positive result.

FEATURED HOMES 

169 Backbone
New Roof May 2017! Directly across from Sewickley Heights Golf course and sited on a lush, professionally landscaped lot with expansive lawns, perfect for your outdoor activities, this home is move-in ready!  3 finished levels include 5 bedrooms, 3.5 baths, 2 working fireplaces, large deck, patio & delightful gazebo.  $595,000   See more details and photos on 169 Backbone HERE!

300 Chaucer Court
With its beautiful acre of land in an idyllic “up the hill” neighborhood, you can be moved in to host warm weather fun this summer! Throw memorable parties at this turn-key Sewickley home! The large deck and covered stone patios spill onto the manicured lawn, with sport court, outdoor bar, covered ping pong area and Rainbow playset. Inside, a stylish aesthetic seamlessly unifies the three finished levels. 4 bedrooms, 3.5 baths, 3 car garage. $799,000. Get more details and see more photos on 300 Chaucer Court HERE!

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

CAN WE USE AN OUT-OF-STATE MORTGAGE LENDER?

I have a friend who has a mortgage business in another state and he tells me he can handle our mortgage here in Pittsburgh.  Thoughts?

It is incredibly tempting to take friends up on offers like this one because we hope when working with a friend we might get a better deal.  However, when it comes to mortgages, this is not a good idea!  My best advice is to ask your Realtor for several recommendations of local lenders and shop rates and fees.  Chances are you will find an equally competitive rate here.  Why do I recommend local lenders so enthusiastically?

There are many facets of our real estate contracts that non-local lenders may not be aware of and that may cause a snag in your deal.  For example, our contracts declare time is of the essence, so your deadlines are exactly as written in the agreement – there are no automatic extensions as there are in many states.  If your lender misses your mortgage commitment date because he doesn’t realize this, the seller could terminate your deal and you could lose your dream house.

Non-local lenders also often do not understand the transfer costs of our area and may mis-quote your loan fees. For example, our transfer taxes vary from borough to borough and are reasonably significant.  If an unaware non-local lender does not include the right figures up-front, he might qualify you for more than you can afford, which could cause problems later when your home gets to underwriting and you suddenly find out that you actually don’t qualify!

Local lenders are also far more likely to be vested in the success of your transaction.  They probably do a fair amount of business with your Realtor and will go the extra mile because they want to keep referrals from your agent coming.  Take advantage of this fact – you are most likely to get the best rates and service from lenders right here in Pittsburgh who are vying for your Realtor’s future referrals and want to make you happy every step of the way!

 

FEATURED HOMES

 

608 Broad Street

608 Broad Street

The contractors have just left this newly remodeled gem.  Less than a block from the Sewickley business district and two blocks from the hospital, you can’t get any more convenient than this! 4 bedrooms and 2 new baths, new kitchen, open floorplan. Wonderful covered front porch.  $389,900

 

 

 

 

 

 

 

17 Linden Place 

Impeccable, neutral Sewickley Village colonial on charming tree-lined street is close to all Village amenities.  Three finished levels of living space includes 4 bedrooms, 2.55 baths in the main house PLUS a 4 car garage with one bedroom apartment above. Large fenced back yard w/ patio.  $10,000 decorating allowance offered to the buyer. $735,000.

As an Associate Broker at HOWARD HANNA REAL ESTATE SERVICESKathe 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 x238or on her mobile phone (412) 779-6060.

For What It’s “Worth”…

In your May 11th article, your first item you noted about real estate is that a home is worth what a buyer is willing to pay.  I thought a home is worth what it appraises for?”

In my May 11th article (available to those of you who missed it on my website), I did list 12 important things everyone should know about real estate, the first being that yes, a home is only worth what a buyer is willing to pay.

Appraisals are typically done in conjunction with a mortgage application, although they are sometimes done as part of an estate administration or by a homeowner who wants to get a better sense of what a home is worth.  Many appraisers are not experts in the neighborhood they are trying to appraise a home in and miss the block by block nuances that greatly affect value.  However, even if they are well versed in a particular area, they may not have been in every home and may not understand the special circumstances surrounding why one buyer may have paid a premium and another buyer may have purchased at a discount.  Appraisers often don’t have their finger on the pulse of buyer expectations – unlike Realtors, they do not interact directly with buyers and don’t have the opportunity to hear them complain about wallpaper, colored carpets, dated lighting and outdated kitchens and baths.  They don’t see firsthand how eager buyers are to purchase newly remodeled homes and the premiums they will deliver for those homes and they aren’t privy to the conversations Realtors have trying to convince a buyer to take on a project. So sometimes they are just too high and that price will not be achievable absent a sizable remodel.

It is also irrelevant how much money a seller has invested in a home.  It is important to keep in mind unless renovations were made in conjunction with a home-staging professional in an effort to sell your home, improvements were made for the homeowner’s enjoyment and may not carry any value for a home buyer.

In the end, Buyers in 2017 America are quite savvy.  Most view all inventory for many months before choosing a home.  They probably know better than a home seller how a home stacks up against what has recently sold.  If they don’t, it is all readily available online.  So in the end, the price is determined by how convinced a buyer is that the value is in the home.

FEATURED HOMES:

7 Harvester Court

7 Harvester Court

 

Beautifully remodeled custom built home offers 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.

 

 

 

1008 Beaver Road

1008 Beaver Road

Less than .5 miles to central Sewickley Village yet sited on private 4 acre lot. Inside, discover a modern  home with beautiful finishes. Stylishly remodeled kitchen w/ Subzero fridge, Viking professional range, charming butler’s pantry. With six bedrooms, two home offices, a formal study, cozy family room with fireplace, living room with semi-circular bay window, sunroom, enormous recreation room/gym, and a 2 attached car garage (and much more!), this home is a show stopper!  $1,950,000

 

 

 

 

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 x238or on her mobile phone (412) 779-6060.

What’s Up the Hill?

We have been looking for our dream home for a long time in the Village and we cant seem to find the right combination of features in a home – either the yard is too small or the home needs too much work or its too close to the neighbors or there is no garage – any advice? 

Yes!  Look “up the hill”!  I have yet to understand why more buyers don’t look outside the Village. Yes, the walkability to the Village center is nice, but realistically how often do you do that?  I live in the Village, and am usually in a big hurry and drive where I am going! And I see many residents who live up the hill who drive down, park and enjoy the Village by foot more than I do! There are many many advantages to buying “up the hill” that make it worth considering this option.

First, yard sizes are almost always larger.  There is generally far more room for the kids or pets to play, more room for gardens, more room for a pool, sport court or auxiliary garage for overflow cars.  Larger lots mean there is more space between the homes, so while you still have neighbors, you cant hear them sneeze inside their home, which is the case for some Village residents!

Homes “up the hill” universally give you more value for the dollar.  They are generally larger homes in better shape for notably less money.  You can spend less, have a smaller monthly mortgage payment, and get more space! Homes “up the hill” are also generally newer homes, so if they require updating, the scale of the project is usually smaller and more of a cosmetic nature.  And because you are dealing with newer homes, the cost of any projects is usually less because you are not having to deal with old wiring and plumbing or structural problems.  And the overwhelming majority of “up the hill” homes have garages.

You might also be interested in knowing that the tax millage charged in the “up the hill” boroughs is notably lower than the millage in Sewickley borough – there is a real premium paid on a daily basis in property taxes for the privilege of being within ½ mile of Village center.

It’s hard to imagine what’s not to love about our wonderful “up the hill homes.” Larger, newer homes on larger lots with peace and tranqulity. So you have to drive 5 minutes to the Giant Eagle as compared to the 3 minutes Village dwellers drive.  It seems like a more than sensible trade-off  for all of the advantages offered by our “up the hill” communities.

Step outside the box and venture “up the hill” this Sunday when we will have many of our listings open!  You may be surprised at how enticing the “up the hill” homes are!

Featured Homes

928 Blackburn Road

928 Blackburn Road

Located “up the hill” on a private 5 acre lot backing to the Allegheny Land Trust but less than 1 mile from I-79!. This immaculate Sewickley Heights home was transformed from an historic barn just two decades ago!  Main home features 4 bedrooms, 3.5 baths, expansive great room with soaring ceilings and wood-burning fireplace. The property also conveys with a newly remodeled guest cottage with 3 BRs, 3baths. $1,050,000

300 Chaucer Court

300 Chaucer Court

With its beautiful acre of land in an idyllic “up the hill” neighborhood, you can be moved in to host warm weather fun this summer! Throw memorable parties at this turn-key Sewickley home! The large deck and covered stone patios spill onto the manicured lawn, with sport court, outdoor bar, covered ping pong area and Rainbow playset. Inside, a stylish aesthetic seamlessly unifies the three finished levels. 4 bedrooms, 3.5 baths, 3 car garage. $850,000.

 

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.

Getting a Lowball Offer, and Hitting A Home Run

Do you recommend that seller’s work with “lowball” offers that they receive? 

The quick answer is YES! Sellers should try to work with any offer that they receive.  However, it’s important to layer filters onto the offer to determine how you should respond.

If your home has been on the market for more than a few months and hasn’t sold, there is a possibility that it is overpriced.  Sometimes a home is just very unique – in its location or its floorplan, for example.  This may extend its marketing time as the pool of potential buyers will be smaller.  But if your home offers more of the features that buyers today are seeking and it hasn’t sold, chances are your pricing may be too aggressive.  This may be a tough pill to swallow – the market right price may be below what you had hoped to sell your home for, below what you “need” to buy your next home or below what you have invested in your home.  As unappealing as this may sound, the market doesn’t care what a seller wants, needs or has invested.  The only relevant inquiry is what has sold in the recent past and how your home compares to those homes.

So if your home is new to the market and you get a lowball offer, it’s not unreasonable to expect that buyer to increase their price.  But if it’s been on the market a while, the price adjustments may be weighted more heavily on the seller’s end.  In any event, it’s important to counter every offer that you receive.  Sometimes you may want to just reduce a small amount in your counter, providing comps and analysis that clearly substantiate your value.  If you provide this information to the buyer, there is a possibility that your data will persuade them to see the value in the home.  If you have no data to justify your price and its just what you “hope” to get or “need” to get, you may want to be more generous with your counter offer and hope to meet the buyer somewhere in the middle.  People list their homes when they want to sell them and the first step in that process is to start the conversation with every buyer, no matter how offensive their offer seems at first – frequently sellers are rewarded for their patience and responsiveness with a sold home!

Featured Homes:

5 Kevin Drive
$759,000

Does living alone in the woods sound appealing to you? 5 Kevin Drive delivers the opportunity to live on 3 acres of natural woodlands, surrounded only by mother nature, and yet still be part of an up-scale neighborhood.  And you cannot beat the location, which combines this privacy with close proximity to I-79.  5 bedrooms, 3.5 baths, 3 finished levels, 3 car garage, two home offices.

928 Blackburn Road
$1,225,000

This immaculate Sewickley Heights home was transformed from an historic barn just two decades ago!  On a private 5 acre lot backing to the Allegheny Land Trust, the main home features 4 bedrooms, 3.5 baths, an expansive great room with soaring ceilings and woodburning fireplace.  On the lowest level are the original stables with 4 stalls, but this space would also be perfect for other farm animals or vehicles.  The property also conveys with a renovated guest cottage with 3 BRs, 3baths.

 

 

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.

The Score on Appraisals

Our neighbors home was under agreement and we just heard that it didn’t appraise.  Is this a common issue you face and how can it be prevented?

Appraisal failures have become more common since the 2008 recession and the tightening of lending standards.  All lenders are required to use pools of appraisers – they cannot control where the appraisal order goes or who does the appraisal.  In fact, lenders are to have no contact with the appraiser to avoid undue influence. Unfortunately, some lenders (typically the larger ones as compared to the small local lenders) use large appraisal placement services and an appraisal on a Sewickley home could end up being placed with an appraiser in Monroeville, or worse yet, in West Virginia or Ohio.  These non-local appraisers do not know our market and often miss the subtleties of our neighborhoods and inventory.   Additionally, many companies use very young people whom they pay a very low wage to complete the appraisal.  It becomes a volume business that many rush through, often missing important details (like that third bathroom).

If an appraisal fails (meaning it comes in under the agreed upon purchase price), there is almost nothing anyone can do to correct that appraisal.  Unless there is an egregious error, like missing a third bathroom, it is highly unlikely there will be an opportunity to increase the appraisal.  Therefore, it is important to set yourself up for success at the time of the initial appraisal.  To do this, I ask my sellers to provide a specific list of all updates they have made to their home in recent years.  I then personally meet the appraiser at the home and make sure that he is taking note of all of its special features.  I also provide him with a list of all of the home’s features and all relevant comparable sales and how they compared to the home he is appraising.  By having personal contact with every appraiser and helping him to understand the nuances of our town and the home he is appraising, my sellers are far more likely to receive the appraisal they need to keep their deal on track.

Should your home fail to appraise, rather than reducing your purchase price to meet the appraised price, a creative solution is to pay for the buyer to change lenders and start the appraisal process all over again.  This is usually less than $1000 and is usually cheaper than reducing the purchase price.  I have seen appraisals come in more than $100,000 apart in a two week time period, which only accentuates how many appraisers just don’t understand our area.  It’s usually not that the value isn’t there but that the appraiser just doesn’t get the market.  This solution could get your buyer the home they want and you the price you agreed to.

FEATURED HOMES:

309 Quaker Road
$799,000

Picture perfect, modern aesthetic is combined with historic charm in this beautifully remodeled Sewickley Village home.  With 5 bedrooms, 4.5 baths, newer white kitchen, mudroom, main level office, 2 car garage and fenced backyard, this fantastic home is in impeccable condition throughout!

 

 

 

204 New England
$699,500

Exceptional condition and a surprisingly spacious floorplan define this handsome, beautifully expanded Edgeworth home.  Three finished levels of living space.  Wish list features include main level mudroom and den, kitchen open to family room and attached garage, New master bath.  Pottery Barn aesthetic throughout. Large yard.

 

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.

Selling with Old Mechanicals

Dear Kathe,

We have a very old (25 years) furnace.. It is still working well and we don’t have the cash to replace it. We are planning to sell our home next year. What advice do you have?

A 25 year old furnace is a very old furnace, well beyond the useful life expected of such equipment. If a buyer makes an offer on your home and then finds out how old your furnace is, there is a very high likelihood that they will be asking you to buy a new furnace as part of their inspection response. There are a few things you can do to set yourself up for a positive outcome.

First, when you complete your seller disclosure, be sure to write on the document that the furnace is past the end of its useful life and may need to be replaced soon. Price your home accordingly and be sure that your agent highlights to buyers agents that you have priced your home at a lower price point because of its older mechanicals. This will prevent the buyer from expecting you to buy them a new furnace – they should take the age of the furnace into account when making their offer.

Second, put a home warranty on your home when you list it. This will provide coverage to you should the furnace break while you own the home and will give the buyer 12 months of coverage should anything happen in their fist year of ownership (and it is renewable).

Finally, consider buying a new furnace. Many contractors are willing to accept payment at closing if you make arrangements for this upfront. With a new furnace you can ask more for your home and are more likely to draw more enthusiasm form the buyers who do see your home.

The Pace of the Sale

Dear Kathe,

Why do some homes seem to fly off the market and others take years to sell?

Location. Price. Condition. These are the three most important factors that go into how long a home is on the market. Unique attributes and depth of market segment would be fourth and fifth!

Location is really where it all begins. If your home is in an easy to sell location, the market will be far more tolerant of imperfections in other areas, such as wallpaper or a slightly aggressive price. Location is sometimes relative to a particular buyer – their work address may make one part of town more desirable than another, but generally speaking, buyer excitement about properties rises and falls with address.

Condition is also a very important factor in pricing. Homes that look like they are straight from the pages of a Pottery Barn catalog tend to sell more quickly, and tend to bear higher prices than are sometimes warranted. Those that are dated, with older wallpaper and carpeting, for example, tend to sit – unless, of course, they are in a hot location and deeply discounted, in which case our stable of “flippers” will be ready to buy with cash and close quick for the opportunity at a profit when they renovate.

Price is the easiest of all factors to change. If priced well, even less popular locations and homes that have condition challenges can sell quickly. But if you are trying to match the price of competing sales that were in better locations, better condition or with more amenities, you may find your home takes far longer to sell.

Finally, you may have a home with unique features. A home with no off-street parking can be a challenge to sell at any price point, and it is a matter of being patient and waiting for the right buyer who appreciates the home’s other attributes. You may not have a master bathroom. You may not have any green space in your “yard.” You may have a kitchen barely big enough for one. You may have only two bedrooms. There are many factors that could lengthen time on the market even with perfect condition and price. And of course, depth of the market segment is relevant as well. The higher you go in price, the fewer qualified buyers there will be and the longer your home will take to sell.

Where Did They Get THAT Price!?

Dear Kathe,

How do we decide how to price our home? We know buyers like to negotiate!

Deciding on an asking price is a challenging task, particularly in Sewickley.  Interestingly, in Pittsburgh’s North Hills, sellers realize much closer to their asking price, often 97% and higher.  However, if a property is overpriced in the North Hills, buyers will simply write the property off – low-ball offers are not made.  In Sewickley, however, we have developed the unique tradition of negotiating fairly heavily on the sale of a home.  In prior years, the average realization was only 89% and offers often start as low as 80% below asking price.  So how is a seller to price a property?  If a seller prices 20% over the price a home is likely to sell for to allow for negotiating, it is likely to be seen as “overpriced.”  If the seller prices only 2% over likely sales prices, many buyers will factor in the large discounts we often see and bring in inappropriately low offers.  Developing a strategy for both pricing and marketing is therefore critical to make sure that a home is both well received and does not sit and get stale on the market.

If you’re facing a deadline due to job relocation or other reasons, then you need to price competitively, even more competitively than expected in today’s market.  You’ll need to list at significantly less than your competition.  And keep your commission higher as an incentive for a quicker offer.  That may seem tough to stomach, but it’s better than continuing your monthly loan payments or the hassle of trying to find tenants to rent your home and of being a landlord for a year or more.

If your home has been listed for some time, but not generating interest, you may need to lower your price.  Of the three elements that sell a home – price, location, and condition – price is the one you’ll have the most control over.  Review your listing company’s programs and marketing, making sure that you are taking advantage of all of them.

Make sure your home shows better than its competition.  Its condition should outshine all of the other listings in its price range.  Take time to de-clutter, store off site what you can live without, stage and make sure you attend to all of the little maintenance projects you may have been putting off.

In the end, Sewickley statistics show that if your home does not have an agreement on it within 75 days of the listing date, you will not achieve 90% or more of your original asking price.  This makes the original list price a critical decision and also makes it clear that after 75 days, it is absolutely essential to reevaluate your price in light of market feedback and price.