Pittsburgh South By Fern Yonke

Qualifying Buyers in Today's Market

All the rules have changed!  And they are continuing to change.  What worked last year, or even last month may no longer be valid in getting a buyer a mortgage.  What used to be a good credit score-700 now may not be good enough to get the best rate. 

If you are a buyer looking to get approved-  the first thing to consider is to be sure you are dealing with a mortgage person who really knows his or her business and can get the job done.  Don't jump from lender to lender, but check with your realtor for a recommendation of several reliable mortgage bankers or brokers and then get information from them regarding their closing fees.  At that point, sit down with one and share your financial situation to see if he or she thinks, based on your credit score(of course) and income that you are a good candidate for a loan.  Only then should you allow them to pull your credit. 

Right now rates are jumping up and down daily.  Last month(December-2008) rates dipped down under 5% and it prompted a lot of people to re-finance.  Now that there are a lot of deals "in the pipeline", the banks have raised rates slightly.  Hopefully, once those loans are closed, the rates may come down under 5% again, but there is no guarantee that will happen.  Rates are great now- in the mid 5% range, nothing to complain about.....so if you find the right home, don't wait for that to happen, because they could go up!

Usually there is first time buyer money offered by the state(PHFA) at a lower rate, but right now conventional rates and FHA,VA rates are actually a better deal.  Today the PHFA rate stands at 6.875!The state is obviously not interested in lending any money now!

Some other changes, the down payment now for the FHA is 3.5%, up from 2.25%.  I should clarify that the buyers must have this much of their own money into the deal. It can be gift funds. Also the MIP(mortgage insurance premium) is up from 1.5 to 1.75 and the monthly fee is up from .50 to .55%.The limit however for Allegheny, Beaver, and Washington Counties is $271,050. That's still good news!

Pricing for today's market

Past comparable sales, usually within the last six to twelve months are not as reliable in determining present market value. The agent preparing the CMA(Comparative Market Analysis) must now look at many factors before suggesting a realistic "listing price".

Every neighborhood and situation is different, but evaluating the current competition is just as important as evaluating the "SOLDS".  The seller can usually expect to receive a price that is close to list and a quicker sale, if he or she positions himself to appear as a better value than the nearby competition.

If the seller gets "hung up" on what the neighbor got down the street two years ago and refuses to take the advice of the real estate professional, it may prove very costly in the long run.  Today's buyers are carefully shopping and comparing, and if they perceive a price that is out of line for the current market, they may move on to other properties.  

Due to the higher number of foreclosures, today's buyers have additional properties from which to choose and sitting with a house with a higher price tag than the competition, may cause that property in time to become a "white elephant".  

Most importantly, the homeowner should chose an experienced agent who does his or her homework and prepares a thorough evaluation of the market in the surrounding neighborhood.  This can be the key to getting "top price" in today's real estate environment. 

Turning a Sow's Ear into a Silk Purse

As an agent, one of my "pet peeves" is to show another agent's listing that is filthy dirty, has burn-out light bulbs in stairwells and basements, and has so much clutter that it is impossible to see the floors or the walls. Part of the marketing plan of any listing agent should be to educate the seller as to his responsibility in getting the home ready to market.

In some instances, it is difficult to tell the owner that his home is dirty and smells like smoke,dog,or cat pee, but if one is to do his job, it must be done.  A list can be prepared ahead of time to give the homeowner that deals with all aspects of preparing the home for marketing. 

Since the object is to sell the home- at which point the homeowner moves out, why wait to pack it up? Get rid of the junk that is going to be thrown out anyway.  Have the closets cleaned and organized.  Buyers see themselves living in the house the way the current owner lives there.  If the closets are jammed, with flying objects appearing when the doors are opened, it sends a message to the potential buyers that they are not going to have enough closet space, either.

The house must smell good when the buyers tours the home.  Pet odors must sometimes be professionally removed. Burning candles to conceal odors is a no-no. This is deceptive to a buyer and can lead to legal problems, post settlement. If the carpet is holding odors due to pet urine, the best idea is to remove it and have the floors scrubbed. If the hardwood underneath is damaged, this must be disclosed to the buyer.

Nothing is a substitute for a good cleaning. A house may not be updated, but there is no excuse for it being dirty. If the seller is not agreeable in doing what is necessary to make it marketable, then it is probably a good idea to refuse the listing.  If it is a turn-off to the agent, guaranteed it will be a turn-off to buyers. 

The outside grass and shrubs should also be tidy and well groomed.  The front door should be clean and the threshold should sparkle.  If the front of the home does not convey a good first impression, the buyer may be turned off, before walking through the front door.

If there is a garage, it too should be neat and organized.  If possible, park the car in the garage, so the buyer can see that a car can fit.

The basement should also be cleaned.  Buyers and agents do not enjoy feeling like they are in a scene from "Halloween", with unlit rooms, hanging cobwebs and spiders that attack as they walk through.

Taking the extra time to properly prepare the listing means less time on the market, consequently more money in the sellers's pocket, less stress for everyone involved, happier sellers,buyers,and agents.

Mt. Lebanon Gets New Police Chief

Coleman J. McDonough joins Mt. Lebanon as their new police chief.  The Pittsburgh Tribune Review has the full story. 

Local Restaurant Goes to the Dogs

This hole in the wall restaurant is a real gem in the Dormont neighborhood of the South Hills.  Located just off of Potomac Avenue on Glenmore Avenue, visit Dormont Dogs for a quick, tasty and inexpensive meal. 

Baldwin-Whitehall Schools to Participate in Cost Saving Study

The Tribune-Review reports that the Baldwin-Whitehall School District will participate in a program that provides free consultants to study how districts can share services and save money.

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