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Spring Has Sprung in the Nation's Housing Markets

by Don Roth


Much of the country is looking at one more very big bite of winter before spring officially begins, but for the residential real estate market, spring is already underway—and new home buyers are sprouting everywhere.

Job creation so far this year is 30% stronger than in the same period last year. Unemployment is close to a low of more than nine years. Wages and income are also starting to pick up to growth levels we haven’t seen since 2009.

And with more money in their bank accounts, consumers are feeling a boost in confidence that leads to big purchases … like homes! This year’s economic growth gives them another reason to buy sooner rather than later because stronger economic growth also means higher interest rates.

January and February saw rates in line with what we saw at the end of 2016. But in the last two weeks, we’ve seen the average rate for a 30-year conforming mortgage increase by almost a quarter of a point. That’s because the market is expecting the Federal Reserve to raise short-term rates when the board of governors meets this week.

Mortgage rates will likely stay close to this level until we hear more about additional rate increases later this year. The expectation is for three increases this year. If economic data continue to show growth in inflation and wages, those three increases could actually become four.

This means that rates will continue to rise—we’re more likely to see a movement of 10-25 basis points in one- to two-week spurts, as new data and new comments from the Fed indicate rate policy changes are imminent.  Those spurts will likely be followed by weeks with little change in rates.

The upside of higher rates is that it is getting easier to get a mortgage. The most widely followed measure of mortgage credit access from the Mortgage Bankers Association indicates that access has expanded 6.5% since September.

Arguably the biggest challenge to buyers this spring will be simply finding a home to buy and getting it successfully under contract. That’s because the supply of homes for sale is at an all-time low, and yet demand is strong and getting stronger.

We started the year with the lowest inventory of homes available for sale that we’ve ever seen on realtor.com. While we did see inventory grow 2% in February, total inventory was down 11% over last year.

Low inventory and strong supply are leading to inventory moving faster and faster as measured by median days on market. The median number of days on market in February was 90 days, six days less than last year. We also saw 27% of all listings selling in less than 30 days. Last year, we saw that happen in mid- to late March, so this year’s timetable is about three weeks ahead.

The early birds who decided to buy in the winter faced less competition and enjoyed lower rates than we are seeing now. It gets more expensive and more competitive going forward, but the early(ish) buyer, at this point, is still likely to come out on top, when you consider that prices and rates are likely to be much higher later in the year.

​Source: http://www.realtor.com/news/trends/nevermind-the-snow-spring-has-sprung-in-the-nations-housing-markets/?​

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

7 Kitchen Gadgets That Are Worth Your Money

by Don Roth

There are a lot of kitchen gadgets on the market, and it can be difficult to tell what’s really worth buying and what’s a waste of money. If you want to stock your cabinet full of useful gadgets, invest in these seven pieces:

1. Vegetable Peeler

A veggie peeler can do a lot more than just turn your zucchini into uniform strips. Next time you want some grated cheese, use your peeler! That goes for lemon zest and chocolate flakes, too. If you need to “shave” something in the kitchen, your vegetable peeler can handle the job!

2. Can Opener

So maybe your can opener isn’t a jack-of-all-trades, but he’s really good at what he does. An automatic opener that costs more than $100 is a little excessive, but if you plan on eating canned food at any point in the future, it’s worth investing in a sturdy, hand-held can opener. (Just make sure you disinfect it regularly, they get dirty!)

3. Pizza Cutter

Sure, pizza can be cut with scissors, but pizza cutters do a lot more than slice your favorite pie! If you want to cut dough for pastries, make homemade noodles or slice French toast, a pizza cutter will save you from a lot of hassle.

4. Colander

First, let’s get one thing straight: watery pasta does not taste very good. So a colander is an important tool if you’re a pasta lover. If you’re not a linguini fan, you can still use your colander as a makeshift steamer! Place your vegetables in the colander and place the colander in a large pot with 1-2 inches of water. Simmer the water until it’s boiling and place your lid over the colander. You’ll have steamed veggies in no time!

5. Melon Baller

Melon balls may seem like a waste of time, but what about cookie dough? Or ice cream? Think of your melon baller as a way to perfectly scoop and portion anything soft. You’ll be using it for practically every meal! You can also use this handy little scoop to deseed tomatoes, peppers and winter squash.

6. Tongs

Tongs are basically heat-resistant hand extensions, and make tons of kitchen tasks easier and safer – everything from flipping burgers to tossing salads. Mix pasta and sauce with ease, and rotate burning-hot cake and pie tins in the oven. If you need to grab something that may or may not hurt your hand, grab your tongs first. Better safe than sorry!

7. Cocktail Shaker

If you enjoy a martini every once in awhile, you know the joy of a perfectly shaken cocktail. But did you know that you can use your favorite liquor tool while making breakfeast, too? If you want to beat eggs, skip the whisk and use your martini shaker instead. They'll be perfectly beaten with the flick of a wrist

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Central PA Real Estate Report for 2014

by Don Roth

The number of homes sold in Central PA and the greater Harrisburg area increased slightly (3%) over the sales results for 2013 continuing a positive trend we have experiencing over the past few years. But the increase is growthsmaller than the approximately 10% increase in sales in 2013 over 2012. But there is also some additional positive news in that the average sales price increased to $187,076 in 2014 and the days on market before a home is under contract now stands below 90 days.

What does 2015 look like? I think the trend will continue to look positive with respect to the number of sales and the average sales price. Although I do not expect these numbers to go off the charts, I am anticipating a steady rise similar to the years prior to the financial crisis. Why?  Some of the increase, I believe, will come from a decision that the federal government (FHFA) made recently to decrease the insurance premium on FHA mortgages that would save a borrower approximately $75 per month on a $180,000 mortgage. And since approximately 15% of all sales in 2013 and 2014 were financed by this type of financing this should provide some stimulus to the sales market. And although higher mortgage interest rates have been called for by the experts for the past year, the current interest rate for a 30 year fixed rate mortgage is between 3.75 – 4.00%, which does positively impact affordability. I do though anticipate mortgage rates to increase, by how much I do not know but it will impact some potential buyers.

All that said you can see a positive trend has emerged and I anticipate it to continue in 2015. If I can be on any assistance or provide any information please contact me at your convenience.

Don Roth

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

The information compiled by me came from our local Multiple List which comprises primarily Cumberland, Dauphin and Perry counties with some additional info from Lebanon, Lancaster and York Counties.

Winter Home Energy Audit

by Don Roth

WHY DO THIS?

Taking steps to conserve energy can cut your electricity bill by as much as $600 a year. Don't believe it? Up to 30 percent of a home's energy usage can be lost by drafts alone! Do a home energy audit to pinpoint the best ways to reduce your utility bills this winter.

How To:

1. Stop drafts. Fix the drafts under your doors and windows. For a quick fix, place a rolled bath towel under drafty doors and on windowsills. You can also purchase a door draft stopper for around $5.

2. Reverse your fans. Many ceiling units come with a switch to reverse the directions of the blades. Switching your blades to clockwise will help circulate warm air pooled near the ceiling back into the living space. This small change can cut your heating cost as much as 10 percent.

3. Turn down your water heater. Set your hot water heater to 120 degrees F. Water heaters are usually unnecessarily set to 140 degrees F by installers. Lowering the temperature would reduce your water heating costs by anywhere from 6 to 10 percent.


4. Lower the heat when you leave. Don’t forget to turn down your heat when you're not home! For every degree you lower the thermostat during heating season, you'll save between 1 and 3 percent on your utility bills. If you’re the forgetful type, consider investing in a programmable thermostat! They are widely available for as little as $50. Note: If you have a heat pump system, it's best to leave your thermostat at a set temperature. Moving the thermostat temperature up one degree can actually cause the system to waste more energy.


5. Install window plastic. You can find window plastic at your local hardware store and if it’s properly installed, it’s essentially invisible. The plastic will help to add a buffer against drafts and improve your home’s ability to hold heat.

Information courtesy of BrightNest.com.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.


As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700complete my online form, or e-mail me at don@donroth.com.

 

 

Pet Things That Devalue Your Home (By $30,000!)

by Don Roth

First things first: We LUV pets. But, it’s not really a secret that owning one can be expensive. Monthly bags of food, unexpected vet bills, new toys and boarding costs add up quickly – but that’s only part of the price of pet ownership.

dogIt turns out the estimated value of your home can plummet (potentially to the tune of $30,000!) when a potential buyer finds out the home was shared with a pet.

Why? Sometimes, pets stink. And they scratch. And they pee on stuff.

Here are three pet-related issues to watch out for if you want to retain your home’s pre-pet value:

Scratches, Scratches Everywhere

Scratches from pets aren’t limited to hardwood floors – although they should definitely get some attention.  Other commonly scratched spots include doors, windowsills, window screens, wall molding, cabinets, porches … and pretty much anything else your pet can get their claws on.

Even a well-trained pet gets bored, and boredom leads to scratching, which leads to reduced home values. To fight the problem before it starts, make sure your pet gets plenty of exercise and has toys and treats to occupy their time while you’re away. We recommend checking out BarkBox for a constant supply of new, awesome toys.

Or, if your pet really needs some extra supervision, look into a doggie daycare or pet-sitter while you’re away. The upfront cost of daycare (about $25 a day) isn’t exactly cheap, but it can help you recoup serious cash when you’re ready to sell your home. 

Lingering Odors

This is a biggy. An accident here, a litter box there, and your home never smells the same. And one whiff of a bad odor is really difficult to recover from when trying to sell your home.

You know how they say love is blind? Pet smells work like that, too. The issue here is that many homeowners get used to the smells associated with having a live-in pet, so it’s commonly overlooked. Don’t do that! Instead, take the time to deep clean any mess that happens and use these stink-fighting tricks when an appraiser or potential buyer is visiting your home. Tip: Ask an honest friend to rate your home’s stink from 0 – 10. If it’s anything over a 3, you may want to consider hiring a professional to handle the smell.

Ugly Yard = Bad First Impression

Let’s be straightforward: Poop and pee kills grass. Dogs love to dig holes, and to some animals, plants look delicious. All of these issues can make a once well-manicured lawn look messy. When you’re selling your home, curb appeal can make or break a deal, so pay attention to your lawn. Fix issues like dead grass from a favorite pee spot immediately. We’re not saying Lassie shouldn’t enjoy your lawn! Just clean up after her and keep the digging to a minimum.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Avoid Devaluing Your Home

by Don Roth

As a homeowner, there are countless tweaks and additions you can make to your abode. If you’re enthusiastic, Home Depot can eventually start to feel like an all-you-can-eat home improvement buffet of fun. But before you go home valueinto project-planning overdrive, slow down! It’s important to be selective with your add-ons because some changes can actually devalue your home. Here are six things to double-check.

  1. Removing a bedroom. If you’re an empty nester, it can be tempting to convert that unused boudoir into the home gym you’ve always dreamed about. But the number of bedrooms in your home directly affects its value, so ask yourself: do you really need the new room? If the answer is “yes,” just make sure the changes continue to meet building codes for a bedroom (these can vary, so it’s best to check with a professional). That way, you can still market the space as a bedroom. Note: Even if the room meets bedroom building codes, its perceived value will drop if it’s being used for something else. So if you’re planning to sell in the near future, it may be best to leave the bed!

  2. Mediocre renovations. A quality, well-installed kitchen island is a great way to boost your home’s value. But imperfect work is easy for potential buyers to spot, and if they feel like your renovations will need to be tweaked (or redone entirely), they may lower their offer. To avoid this problem, carefully weigh the pros and cons of doing a project by yourself before you begin. If you decide to hire help, make sure you vet your contractor thoroughly!
     
  3. Showcasing a satellite dish. Let’s be clear: there is absolutely nothing wrong with 1,000 premium channels of HD entertainment. The more the merrier! But if a prospective buyer can see your satellite dish as soon as they turn onto your block, your curb appeal is going to take a hit. If you get a dish installed, work with the technicians to place it in an out-of-the-way spot.
     
  4. Sporadic home maintenance. Big renovations tend to take the spotlight when it comes to increasing your home's value, but regular maintenance can be just as important! In fact, without proactive maintenance – like cleaning lint from the dryer or changing your furnace filter – your home could lose up to 10 percent of its value. Routine maintenance not only protects the value of your property – it can also enhance curb appeal, ensure safety and prevent simple problems from turning into costly repairs. If you’ve fallen a little behind, that’s not a problem. It only takes one hour to get back on top of things.
     
  5. Smoking inside. The whole “post-intimacy” cigarette looks cool in movies, but it’s not as suave when it comes to your home’s value. In fact, one survey revealed that some buyers believe smoking inside of a house can lower its value by as much as 29 percent! When you combine this with the fact that fires caused by still-burning cigarette butts are the leading cause of home-fire fatalities, smoking outside becomes a no-brainer.
     
  6. An above-ground pool. Depending on where you live, an in-ground pool can bolster your home’s value by as much as 11 percent. However, the above-ground counterpart isn’t as popular. Since they aren’t as visually appealing, buyers will tend to focus on the negatives of the pool (maintenance costs and safety hazards), and your home’s purchase price may take about a two percent hit. Note: If you and your family simply can’t live without some pool-side fun, don’t let this deter you! You can’t put a price on epic water-basketball matches or fun Marco Polo sessions.
The above information is provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Young and Apparently More Restless

by Don Roth

A couple weeks ago, we lamented the dearth of young adults venturing out on their own. Indeed, Pew Research , a think tank, reports that nearly one in four young adults (age 25-to-34) still live with their parents, more than double the 11% who lived with their parents in 1980. We reasoned that many of these young adults have either poor job prospects or are weighted down by onerous student-loan debt.

home buyerPerhaps we over-reacted a bit. Now, it appears more of these young adults are willing to become actual adults by moving out on their own. What's more, many of them are buying a home. Trulia reports that the number of young adults age 18-to-34 who became homeowners rose 0.9% in 2013. Trulia's data contrast with Census Bureau data that show ownership fell by 0.1%.

More millennials entering the market would be the start of an important housing trend. Better yet, it would be the start of a trend with considerable staying power.

A large percentage of young adults out of the housing market is a source of large pent-up demand, which could lift overall demand for years to come. As more millennials enter the market, they will have a ripple effect that will lead to more demand for more expansive homes. As millennials become more established in their jobs, they'll naturally seek to trade up.

Living with mom and dad is comfortable, but unhealthy as an adult. Eventually everyone has to make a break. This basic fact of life bodes well for housing over the long term.

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

House Flaws That Shouldn't Be Deal Breakers

by Don Roth

House hunting is a little bit like going on a whole bunch of first dates. In both situations, you’re on the lookout for deal breakers, like a creepy attitude (bad neighborhood), nasty breath (moldy basement) and no personality (“blah” décor). But just like the dating game, first impressions can be a deceiving, and not every cliché “house problem” is dump-worthy.

thumbs up downHere are five flaws you may find during a house hunt that aren’t necessarily deal breakers:

Wall-to-Wall Carpet

You don’t often hear people say that they “love” wall-to-wall carpet, but people’s tolerance for the look varies. If you really can’t stand the shag – but you’ve found a home that’s perfect otherwise – give it a chance! Beneath that carpet is probably a beautiful floor with endless possibilities. The cost to tear up and replace carpet with an inexpensive alternative (like vinyl) is generally $15-$20 per square yard, so this foible can be fixed without breaking the bank.

Popcorn Ceiling

This rough acoustic surface (also called “cottage cheese” ceiling) is basically the polar opposite of modern chic. But that doesn’t mean your dreams of a sleek décor scheme can’t come true! Removing popcorn ceiling yourself is labor intensive, but very doable. Or, you can hire someone to do it for you – it generally costs $1.30-$2.60 per square foot to remove. Note: If the house you’re looking at was built before 1979, popcorn ceiling removal is more complicated (and expensive) due to the risk of asbestos.

An Old Roof

A house with a roof more than 10 years old tends to trigger alarm bells. After all, old roofs can quickly turn into leaking roofs. But remember: old doesn’t mean broken, and the age of the roof should reduce the asking price of the house. Important: If you purchase an old-roofed house, it is important to budget for an eventual replacement, which can cost anywhere from $2,000 to $10,000. Different roof surfaces have very different life expectancies, so do some research about your roof and plan accordingly.

A Slightly-Too-High Price Point

If you’ve found your dream home, but it costs about $5,000 more than you planned to pay, don’t walk away immediately. Five grand is nothing to sneeze at, but when you compare it to the total value of your home, it’s less significant. Plus, there are two possible ways to earn back this amount of cash:

1. See if there are any homeowner tax incentives for which you’ll qualify.

2. Ask your real estate agent if they’d be willing to take a small cut in their commission given the higher price (it’s in their best interest to get a deal done, so they may be receptive to this).

No Central AC

Hear us out! If you’re house hunting in the middle of July, the idea of a sans-AC existence can seem like purchasing a lot on the seventh circle of hell. But a few window units (or some well-placed fan action) can cool off a lot more effectively than you think. Plus, installing a central AC unit can be done for as little as $2,000, which isn’t that bad if the lack of AC took a chunk out of the initial price. 

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Should I Stay or Should I Go?

by Don Roth

This post originally appeared on LearnVest, where smart people learn to manage their money and live their richest lives.

houseIt’s a question that plagues nearly every homeowner who’s ready to move on: When is the best time to put my house on the market?

And given that the housing bubble burst in 2008, another question inevitably surfaces: Just how much money can I expect to lose?

Well, it really depends on where you live, says Jed Kolko, chief economist and vice president of analytics at Trulia.com. The good news is that, in most of the country, it’s a seller’s market. “Inventory is very tight, so sellers have little competition, while buyers are getting into bidding wars—and sometimes even facing off against investors,” says Kolko.

The bad news? Prices are still sluggish to rebound in some big cities, like Chicago, Philadelphia and New Jersey. That said, a few metropolises have fared better. “The biggest price increases have been in Phoenix, Las Vegas and Oakland,” says Kolko.

So how do you know if it’s a good time to sell where you live? Experts weigh in on three homeowners living in popular regions of the country who are currently debating whether to pack up or stay put.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

How to Use Comparable Sales to Price Your Harrisburg PA Home

by Don Roth

Knowing how much Harrisburg PA homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

housesWhat makes a good comparable sale?

Your best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If you can’t find that, here are other factors that count:

Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.

Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?

Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners: Did the comparable-sale sellers give the buyers down payment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents can help adjust price based on insider insights

Even if you live in a subdivision, your home will always be different from your neighbors'. Evaluating those differences—like the fact that your home has one more bedroom than the comparables or a basement office—is one of the ways real estate agents add value.

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.

More ways to pick a home listing price

If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your Harrisburg PA home and the other homes on the market (and then listen to her without taking the criticism personally).

Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?

Are foreclosures and short sales comparables?

If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.

A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.

How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.

So you have to rely on your REALTOR’s® knowledge of the local market to use a short sale as a comparable sale.

Information provided by HouseLogic.com.

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When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

 

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