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

WHY YOU NEED A BUYER’S AGENT

We’ve been watching realtor.com and calling listing agents about new listings. Agents keep asking me if I have a buyer’s agent. Why would I want one?

It ‘s a good idea to recognize exactly what a buyer’s agent is to you – essentially an almost free invaluable resource to you in the buying process. You might think you will save money if you don’t have an agent that needs to be paid, but in reality that’s not how it works. The sellers have signed a listing agreement obligating them to pay a commission to the listing brokerage house of an agreed percentage and that percentage does not get adjusted if a buyer does not have an agent. So there is simply no advantage to not doing your research and choosing your own advocate before you begin the buying process.

In a recent study done by the National Association of Realtors, the #1 benefit all buyers put forth for having a buyer’s agent? A buyer’s agent helps her buyer understand the process of buying a home (74% of millennials found this to be true). Buying a home is a significantly more complex process than you might imagine, and if you have a well-trained agent, she should make it look simple. However, if you don’t buy and sell real estate everyday, there are many traps for the unwary.

The #2 ranked benefit of a buyer’s agent? A buyer’s agent points out unnoticed property faults or failures. A full-time agent is in and out of homes on a daily basis and after years of experience has developed a fine-tuned ability to pick up issues that most buyers would never notice, and will hopefully be able to suggest proposed solutions as well. This is no substitute for a home inspection, of course. Third on the list of benefits? The buyer’s agent negotiated better sales contract terms than the buyers could have negotiated on their own. Again, years of full-time experience coupled with a dedication to staying educated in the profession should hone an agent’s ability to give you excellent negotiation advice.

The #4 ranked benefit? Buyers reported that their buyers’ agents improved their knowledge of search areas. This is particularly helpful when you are looking to move to an area you are not very familiar with. Finally, the 5th ranked benefit of a buyer’s agent is that she can connect you to a better (and hopefully more reputable) list of service providers than you might have access to on your own. All of these benefits can be yours without the fee of the commission – all a buyer pays is the small “broker fee” (which is charged to both buyer and seller) of approximately $325! This is a small price to pay for a long list of benefits and expert advice on what may be your largest investment! My question is, why wouldn’t you want one?

Call me!! I can help! 412.779.6060

FEATURED LISTINGS

300 Chaucer Ct

NEW PRICE — With its beautiful acre of land in an idyllic “up the hill” Sewickley 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. $750,000.  See More…


180 Summerlawn Drive

Beautifully remodeled open concept 17 year old home on ½ acre wonderful lot with large backyard 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 gameroom. New roof. $599,000.  See More…


316 Beaver Street #204

Luxury and convenience seamlessly blend in this chic central Sewickley Village condo. Just steps to the shops and restaurants, this beautifully renovated unit features 2 bedrooms, 2 baths, large living room with built-ins, dining room, family room, eat-in kitchen and private balcony. In-unit laundry plus 2 indoor parking spaces. New hardwood floors unify the living spaces. Secure building. $435,000.
See More…

444 Woodland Road

Privacy in the heart of Sewickley Village! 2.973 Acres with mature landscaping, sprawling lawns, in-ground pool, private patio and natural woodlands that provide a year-round buffer for this magical property, yet Village shops and restaurants are just a few blocks away! Renovate to restore the home’s original relaxed elegance, reminiscent of New England seaside homes. Or replace with your own 21st century home of your design and creation! A rare opportunity in Sewickley! $825,000  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

THE HOME INSPECTION DILEMMA

We are buying a new home.  Can we skip the home inspection and save a few bucks?

I do not recommend that you skip a home inspection, even with a new home.  Please keep in mind if buying a new home that no matter how nice and reassuring the builder or his realtor representative are, they do not represent you!  I have on many occasions witnessed a builder trying to gloss over obvious deficiencies with new homes.  You need a home inspector to carefully assess your new home so that you aren’t burdened with repair bills later for improper conditions that existed at the time of your closing. While the inspector is there, it’s a good idea to get a pest and radon inspection in addition to a general home inspection.  Both pests and radon are commonplace and can be significant – its wise to know what you are dealing with before you move in.

However, do not make the mistake of assuming that all home inspectors are equally skilled at their profession. Some inspectors gloss over many areas of concern and take a VERY big picture approach, which, while generally not alarming, can also be very unhelpful as you plan for your future improvements to the home.  Others can be incredibly harsh and point out flaws that are inaccurate or irrelevant, leading you to over-react. Before booking a home inspector, do your due diligence – make sure they are ASHI certified  and read their online reviews (as you I am sure you did when you chose your Realtor).

Finally, once you move in, keep in mind that it is recommended that homeowners have their homes professionally inspected once every ten years.  The mere passage of time can take a toll on a home, and better that you find problems and correct them before they become big problems. Repeating pest and radon inspections at that time is also a good idea – they are also best addressed sooner rather than later.  If you have any questions about whether you should be getting your home inspected, please give me a call!  412.779.6060

RECENTLY SOLD — represented buyers.
Click the photo to see more of my past sales history!

 

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.

The Power of Pre-Approval

It’s true! Bidding wars are back in some neighborhoods!  The extremely tight inventory, coupled with the influx of spring buyers has made the competition sometimes fierce for well-conditioned homes in great neighborhoods.  The first thing you should do to set yourself up for success in a hot market is to get a pre-approval from a reputable local lender.

The pre-approval process is more than a pre-qualification.  It involves submitting all documentation to your lender long before you actually make an offer.  This includes tax returns, bank statements… The lender will underwrite your loan subject only to the appraisal of your new home once you find it.  This makes you an incredibly strong buyer – you could choose to remove the mortgage contingency altogether and insert only an appraisal contingency, but even short of that, knowing that you have taken the time to get fully approved will impress the seller and give you some advantage over other buyers.

Pre-approval (as opposed to pre-qualification) is also important so that  you don’t find out 75% of the way through the home buying process that you cant afford the home.  Sometimes lenders miss some of the critical pieces of your puzzle during the pre-qualification process that an underwriter will pick up.  For example, it is possible that your gross income is high, and that you reported that figure to the lender, but when the underwriter reviews your tax return they see that your AGI (adjusted gross income) is lower due to alimony.  Child support payments will also lower the amount of the loan you can qualify for.  You may have co-signed student loans or car loans for a child, or a mortgage for a family member.  Any debt you have co-signed for, whether it is an asset you use personally or not, will lower the loan size you can qualify for. And of course, pending actions for divorce, as well as dings on your credit you were unaware of (such as doctors bills you forgot to pay) will affect your ability to borrow.  Better to take the time to figure this out up front and target homes you know you can afford, rather than being tempted by those out of your price range!

FEATURED HOMES:

1OO8 Beaver Road

1008 Beaver Road – NEW PRICE!

Spectacular, lovingly restored, turn-key historic Sewickley home. 8000SF+2 home set in a private 4-acre lot with a stream, grounds to play in, and romantic terrace and 2-story patio to entertain on – all  just blocks to central Village. Inside, discover a modern  home with incredible , 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

 

 

 

129 Fox Hill

129 FOX HILL ROAD

Tired of looking at one fixer upper after another wondering how you can fit a project into your already too busy life?  Look no further! This home has been meticulously renovated — recent improvements include new kitchen, 2.5 new baths, new windows, new HVAC, new paint inside and out, newly refinished floors & more. 4BR, 2.5 baths, 2 car garage, finished walk-out lower level, 1 acre lot. $625,000

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.

Twelve Real Estate Tips You Should Know

You give a lot of advice each week – any way to sum it up quickly for those of us who need the Reader’s Digest version?

 

I recently came across a posting on one of my favorite Facebook pages that I shared on my Facebook business page (Kathe Barge Howard Hanna Sewickley)  that I think does an outstanding job doing just that for sellers!  Quoted from The Lighter Side of Real Estate, the following are words to live by if you are selling a home, presented in a brief, easily remembered format:

 

“Twelve Things You Should Know About Real Estate:

  1. A Home is Worth What a Buyer is Willing to Pay
  2. Updates May Not Increase the Value, But They Increase the Chances of Getting it Sold
  3. Cleanliness is Godliness
  4. Curb Appeal is the First (and Strongest) Impression
  5. Pet Odor and Clutter Leave the Longest Lasting Impressions
  6. Neutral Paint and Décor Will Always Appeal to the Masses
  7. Cheap Fixes or Updates Will Result in a Cheap (Low) Offer
  8. Everything is Negotiable
  9. Time is of the Essence
  10. Location Location Location
  11. Buyers Notice Things They Want to Change Before They Notice Any Updates
  12. When Priced Right It Will Sell”

Keep these principles in mind and apply them when selling your home and its sure to be a success!

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!

 

 

 

928 Blackburn Road
$1,050,000

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.

The Fine Art of Negotiating

Dear Kathe,

How much negotiation should we expect when buying a home?

Some homes sell for 100% of asking price, even months after they have come on the market. Others sell for 25% off ask. How does a buyer even begin to know how much to expect to “negotiate off” the asking price of a home?

Community practices are a good place to start. In the North Hills, for example, homes typically sell for very close to asking price – if a home is priced too far above what the market will bear, buyers simply sit and wait for sellers to reduce. In Sewickley Heights, on the other hand, large discounts are commonplace.

It’s also important to consider how long a home has been on the market since it’s last price reduction. If it’s been a few months, there may be more room to negotiate.

The time of year and market activity and other important factors. In the spring market, homes are far more likely to yield higher realizations. This has been a very hot spring market – if you are buying this time of year and looking for a large discount, you may be disappointed.

Listing agent pricing styles are also relevant – some agents price to allow for large amounts of negotiation and others prefer to choose a price very close to market value in an effort to engender more enthusiasm about a home –knowing the agent’s average realization will help you determine the best approach to take if you actually want to be successful in your negotiations.

Finally, and most importantly, its important to review and understand the comparable homes, including price per square foot and neighborhood particularities. If a home is priced at or below the price at which comparable homes in similar locations have sold, it’s highly unlikely a deep discount offer will succeed.

Before you determine how much to offer and how you will approach your negotiations, ask yourself how much you want to own the home. If you are dreaming about raising your family there and your goal is to actually own the home, take a realistic look at the above factors before diving too deep with your offer.

The Cost to Close

Dear Kathe,
Is a seller expected to help pay for the buyer’s closing costs and if so, how much?

Sellers often contribute to buyers’ closing costs in lower price ranges and in first time home buyer situations. Typically buyer closing costs are not less 3% of the cost of the home and may be as much s 6%. Buyer closing costs include expenses such as transfer taxes (1%), lender fees, title insurance, property tax proration, homeowners’ insurance premiums and pre-paid mortgage interest. These fees can add up quickly. Sometimes buyers do not have enough cash saved to be able to pay their required down payment and their closing costs as well. They may be very well qualified to buy in that their salary is high enough to afford the monthly payment, but they just don’t have enough cash saved.

When this happens, buyers will look to sellers for help in paying the closing costs that the buyer would normally have paid. This is normally expressed as a percentage of the purchase price. For example, the buyer might ask the seller to pay 3% of the purchase price toward their closing costs. The seller is automatically netting 3% less in this scenario, before they pay their own closing costs which normally range between 7% – 8% of the sales price.

Before you jump to the conclusion that sellers often won’t agree to contribute toward a buyer’s closing costs, stop and look at the greater picture. Normally sellers who help with closing costs are receiving 100% (or very close to that) of their asking price. On the other hand, it’s a rare day that any listing sells for 100% of its asking price, and the average “realization” before seller expenses in Quaker Valley School District is less than 90%. So paying 3% in closing cost assistance but getting a 100% (or close) offer might be your best deal!

Get Thee to a Buyer’s Agent

Continuing from last week:

We’re first time home buyers – where do we begin? 

Hopefully after reading my article last week, you were motivated to get serious about buying a home and began the process.  As I discussed last week, you should be saving your down payment, keeping your credit in excellent shape, getting pre-approved by a recommended lender and researching and selecting a Buyer’s Agent.  So what’s next.? The fun begins!

Your Buyer’s Agent should set you up to receive new listings via email as soon as they become available.  To streamline the process, it is a good idea for you to pre-screen these homes before going to see them.  Check them out online and on google earth, do a drive by to make sure there is nothing that you would object to that is readily apparent.  Once you have done your initial screening, go to see the home as soon as possible.  Our inventory is at record lows.  If you love a home you can be sure that there are at least a dozen other buyers considering the home and you will need to be ready to make an immediate offer.  Along these lines, it is important that you have developed a relationship with your Buyer’s Agent and trust her judgment.  When the right home becomes available you may have to pay full price to get it, and you need to be working with someone you feel you can trust on those decisions.  In this market there is rarely time to test out the seller if it is a great house and is well priced.

When making the offer, allow about 2 hours to go over the contract with your Buyer’s Agent.  You will want your agent to review the details with you and there are many decisions you will need to make when writing the offer.

You will need to work with your agent to decide how much to offer initially, how much hand money to put down, a closing date, the mortgage terms you plan to apply for and time periods for inspections.  You will list the items that are in the house that you expect to stay there, such as dishwashers, refrigerators and window treatments.  There are many other custom terms you may want to include – you may want to include an appraisal contingency.  You may be looking for the seller to address certain deficiencies that you noted while walking through, such as cleaning gutters.  All of the things that are important to you about the home must be written into the contract or they will not happen in the future.  Oral agreements are not binding when it comes to the sale of property.  Your Buyer’s Agent has hopefully paid close attention to everything you noted while viewing the home and will make sure that the Offer reflects all of your wishes.

Once you have signed the offer (and no, you can’t just make a verbal offer – as mentioned above, everything concerning land must be in writing) the offer will be presented to the seller and you will begin negotiations with your seller.  Stay tuned as the process of buying your home continues to unfold next week…