Memorial Day gives us all a chance to remember and thank our true heroes. It also allows us to reflect on the freedoms these brave selfless individuals gave their lives for.

One of these freedoms is the right to own Property.

The right to own Property is instrumental in our ability to pursue our unalienable rights as set forth in the Declaration of Independence…

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights that among these are life, liberty and the pursuit of happiness.”

This was written long before there was a Decoration Day or a Memorial Day. The statement  is as true today as when it was first written.

Owning Property allows us to build homes, raise our families, start businesses and build communities. These rights allow us to improve our lives, exercise our freedoms and pursue happiness as we choose.

Like all good things, there is sometimes a cost.

Many American families endure the sacrifices their loved ones make while defending our country. They leave their homes with no guarantee they will ever return. These family members are also heroes. They are the motivational force behind every soldier. We are all fortunate to be covered under the blanket of security that motivational force creates.

I am proud to be an American. I hold a special place in my heart for all who have served, serve now and will serve our great country. The sacrifices they have made allows me and my family to pursue happiness.

I am blessed to be able to use my talents as a Realtor to help others pursue their dream of Property ownership. It is a task I do not take lightly. It is my duty to understand my chosen trade and responsibly assist those who put their trust in me to help them and their families get to that place where they can continue to pursue happiness.

So it is today that I thank all the men, women and the families of those that serve in the armed forces for defending the rights we so cherish, life, liberty and the pursuit of happiness!

From the bottom of my heart, thank you!

Now go out and find a mother, father, aunt, uncle, brother, sister, cousin, friend, acquaintance or total stranger who has served or is serving our country and thank them. It is definitely a two way gift.

Jeffrey C. Hogue

Before a Berks County real estate home buyer enters a home that is for sale their senses are already at work. Sight is normally the first sense used. Second is hearing, unless there is such a rancid smell outside the home it cannot be ignored. Some of the sounds around a home can be controlled by the owners, some cannot. Read on for important home staging tips. There are many Berks County homes for sale so it’s important that your home looks and sounds its best before it goes on the market.

Things like trains close by the home cannot be controlled. This is similar to living next to a busy road or highway. Loud music and barking dogs coming from the sellers home likely can be controlled.

In this article I will point out items relating to a Berks County home buyers sense of hearing and how they affect the staging of a home. There will be things that we recognize as a potential issue and take control of. The things we cannot control can be managed.

1. The Entrance: Does the front door creak? Find the oil can and use it on all door hinges in and outside the home. Is there a screen door that makes a racket or shuts loudly? Fix it, replace it or remove it! Is the stereo or TV playing music, if so, make it pleasant and peaceful. Are there animals making noises? Try to remove them prior to the showing. Story Time…I recently listed a home where a wonderful lady resides. One of her companions was a large cockatoo. It did not take kindly to strangers and was not afraid to let them know it. It became known by agents as the “Bird House”. This is not the sound you want during a showing.
2. Are their dripping faucets or toilets that will not stop running? Fixing these drips and leaks is a must. Is the radiator or hot water heating system pinging? This could be due to air in the pipes. Have them bled. Have noisy vent fans in the baths or over the range? Repair or replace them. Are their creaky floors? This could indicate questionable construction to the buyer. Annoying floor squeaks, not uncommon in many homes typically occur after the house has settled and flooring lumber has dried out and shrunk. As you walk across the floor, boards rub against each other or slide against nail shafts to produce a cacophony of squeaks and creaks. Loose sub-flooring, both solid board and plywood types, will also emit high-pitched chirps. Traditional hardwood strip flooring is the most susceptible to developing a case of the squeaks, but all types of flooring can creak. The good news is that it’s easy to silence nearly any squeak in a matter of minutes. Here are some clues…
   • If you can get to the floor joist from underneath you can tap a wood shim into the gap above the floor joist after smearing the shim with carpenter’s glue or; drive a drywall screw at an angle up through the joist and shim and into the plywood sub-floor above.
   •  Under carpeting: You can use the Squeak No More Kit.
   • Under hardwood flooring: After locating the squeak, bore a 3/32-in.-dia. pilot hole through the hardwood flooring; it isn’t necessary to hit a joist below. 2. set the Counter-Snap’s depth-control fixture over the pilot hole. Drive the screw down until it bottoms out and automatically snaps off. 3. Fill the pilot hole with tinted wood putty. Allow it to dry, and then lightly sand the spot. You can also use a crayon-type putty stick.
   • Quieting Squeaky Stairs: The typical interior staircase produces more squeaks and squawks than a flock of angry geese. The reason? Staircases are assembled from dozens of wood parts. Over time, these parts expand and contract and the joints between them loosen up. As a result, every step you take emits an irritating creak or groan. Look for access to the back of the stairs in closets and the basement — these repairs are the most effective. From the rear, tap glue-coated shims into the joints between the horizontal treads and vertical risers. Or, screw wood blocks into the corners where  he risers meet the treads. When you can’t get behind the staircase, try one of these topside repairs: Take several very thin wood shims and tap them into any loose or squeaky joints that you find. Neatly trim off the shims with a utility knife. Another way to reinforce loose parts is to glue and nail a length of quarter-round molding along each step.
3. Miscellaneous Thoughts: Turn off the ringer and/or answering machine of your phone during a showing. Story time…I have more than once been engaged in a home showing and the owners phone starts to Ring. This is a mood breaker. Are you running a dehumidifier in the basement? Obviously this is something the buyer sees and hears. The buyer will turn and ask if there is or was a water or moisture problem with the basement. There may not be, but the impression has been made. If it is needed leave it, if not, remove the unit completely.
4. Ideas to Handle Things out of Your Control: In your plans for staging a home for sale, keep loud neighbors in mind and shut the windows during a showing. Especially if they have loud pets. Trains, Traffic, Plains & other uncontrollable exterior noise. This could get more involved. Things like beefing up wall & attic insulation will help quiet the home. Caulking around doors & windows. If you have single pane windows it may be worth replacing them with dual pane windows. Wood clad is more sound proof than vinyl extruded.
   

Obviously there are Berks County home buyers that would be hard pressed to purchase a home in an area where noise is prevalent.

For Berks County home buyers who will consider living in these areas they will likely look for other enhancements to make up for the noise issue. Great back yards with fences, quality, well-kept homes, great baths & kitchens and nice garages are great enhancements.

Ultimately the home must speak to the buyers in a special manner. Make sure the home is not saying things that will bring the home’s value into question. Sometimes, it is not what you say that matters; it is what the buyer hears.

Sincerely,

Jeffrey C. Hogue

I remember when I first started my real estate career. It was autumn 1993. I was eager to gain all the information and experience I could. I took every opportunity that came my way.

One day I received a call from a prospective home seller. He invited me over to preview his home. I studied everything I could get my hands on relating to the home. I was about to embark on a great journey. I was excited and ready.

On my way to the home I thought about all I had learned about homes in Berks County. I was ready. All I had to do was be myself, share information I had amassed as it related to this particular home and not say anything that may upset the home owner. It was go time!

I knocked on the door and was greeted by the owners. Upon entering the home I was also greeted by an invisible inhabitant. Oh no….It was the stench of something fowl. I stayed true to my training and simply hoped I would just get used to the smell, or it would simply leave.

Things were going great. Then it happened… The owners asked if there was anything they could do to improve the home. Should I say anything about the smell? No…If I imply the home reeks, they may get offended and throw me out. I thought about rule #3: Do NOT Offend the Owners! But how am I going to sell the home with this odor? No, no I must be truthful, no matter what the result.

With a slightly worried look on my face I said the following; “Mr. & Mrs. Berks County home seller, there is something I noticed when I came into the home. There was an odor I just cannot make out but it may have a negative impact on prospective buyers” (understatement).

They looked at each other and said well, we did have a stray pet here for about 3 months. I asked if the pet could have urinated on the carpeted floors. They were not sure but told me they did notice a slight odor when they first entered the home but thought it would go away.

They weren’t mad. They did not throw me out. I was elated! I still had to figure out how to sell a home with such unpleasant smell in it, but at least I had the chance. Even more amazing than me getting the listing was how the sellers could ever get used to that smell no matter how long they were in the home.

It is 19 years later. I am much more educated and forthcoming regarding issues that may hinder a Berks County Homes ability to sell.

The odor discussion is never pleasant, yet should always be addressed in preparations for staging your home to sell. While telling a home seller to change the color of a wall is much easier than telling them the home has an offensive odor, ‘houseatosis’ creates a negative impact on the prospective buyer that typically far exceeds the color of a wall.

These days, even the slightest hint of cigarette smoke smell in a can end a home showing in the foyer, leaving the home seller dismayed. Yes, times have changed and so has many buyers’ tolerance of a property that just does not appeal to their sense of smell. Take a look at some of the methods to apply for staging your home to sell and prepare it for a successful showing.

Following is a list of common Berks County Home buyer smell offenders & some ideas on how to re-mediate or limit them:

1. Pets- This can have two issues. First is obvious, the odor. Second is more sinister, allergies. Most people have pets. I have pets. It is important that they are well trained and kept. This is one that can turn out to be very expensive. Either getting rid of the smell or the home (at a lower price). More and more people are becoming allergic to animal dander. The number one allergy is cats. This could simply be a product of how tight homes have become over the years. They are more air tight and insulated better. This keeps the energy bills down but traps unwanted particulates in the home. Consider a good filtering solution for the heating system. This is especially useful when you have forced air.
2. Smoking Tobacco- The whole cigarette thing has really fallen out of favor. People who do not smoke have little tolerance for a home that smells like a cigarette, cigar or pipe. If you smoke quit. If you will not or cannot, try to smoke outside. This becomes more difficult in the winter months. Even though you smoke outside your clothes may still smell of smoke. When a prospective buyer looks in the closet they will get more than storage space. The length of time a home has been exposed to tobacco smoke often dictates what type of remediation is necessary. Painting walls, changing material such as furniture, curtains & carpeting helps immensely. In some of the worst cases it may be necessary to call Berks Fire & Water. They have chemicals that can quickly remediate the smoke smell.
3. Cooking & Food- I once showed a home a day after the owners had an all-out sauerkraut fest. We never made it past the kitchen area. Be aware of what you are making for dinner the day before a showing (especially if it is first thing in the morning). Fried fish is not a good choice. Make sure the trash is out of the house & garage area as it may contain garbage in some form. Run the garbage disposal, if you have one, and run water for about 2 minutes into the drain. Clean out the refrigerator. The prospective buyer may be interested in it (especially if it is built-in). If you do cook aggressive dishes consider a strong exterior vented range hood.
4. Moisture & Mold- This is something that is more prevalent in the basement area. Even the smell of moisture in a basement (finished or not) is a huge red flag for home buyers. Consider dry locking walls & floors in basement. Run a dehumidifier if necessary. If you have forced air heating & cooling you may be able to climatize the area with vents installed into the ducts. In serious cases you may want to consider having an air quality test for mold spores. If the test is positive there are several ways to remediate this, including a good Clorox wipe down. If water is infiltrating from the exterior it may be time for a professional in the field
5. Ventilation System- One never knows what you may find here. Consider a duct cleaning. Never a bad choice.
6. Garage- Remove gas cans & all equipment that contains gas. It is best not to have cars in a garage simply to present the space properly. If you have many items in the garage that are gas or other combustible fuel powered, leave the garage door open prior to the showing.
7. Miscellaneous- Don’t use the bathroom just before the scheduled showing. Don’t throw a keg party the night before a showing. Don’t forget to clean out the diaper genie. Take out the trash around the home (mentioned in the cooking section). Limit unclean laundry prior to a showing.

A few good smell ideas:

1. Baking- Cookies, pies, bread, did I say cookies:)
2. Time Release Air Freshners- Many available.
3. Candles- Something nice and pleasant.
4. Cleaning Products- Most, not all. Clean houses smell clean.
5. Remodeling- Fresh paint & Carpet.

In the world of Berks County real estate, it is easier to sell a home that needs a cosmetic redo than a home that smells badly. It is sometimes difficult for a Berks County home owner who lives in a home day after day to smell something that has become a mainstay. This is very evident with our sense of smell. Invite friends, relatives and your Realtor to be honest with you when it comes to this delicate issue. They will be doing you a favor by telling you the truth either way.

There is nothing that smells as good as the cash you will get from selling a great smelling home!

Read on for more insights and home staging tips.

Sincerely

Jeffrey C. Hogue

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Selling a home can be difficult. This is especially true if it cannot be seen. I am not referring to a preview or showing. I am talking about lighting. It’s important that your home is illuminated in the best possible way to attract prospective buyers.

During a home showing it is important to have all the interior and exterior lights on (Yes…Even in the daytime). It is a proven fact that abundant home lighting helps with mood. It is important that a prospective buyer is in a good mood when previewing your home.

Besides setting the mood and accentuating your house’s best features, good lighting not only brightens a room, but can also make it appear larger. Remember, the buyer is in a foreign space. Lighting helps them find their way around and increases visual acuity. As the seller, you will score big points if your home is properly illuminated.

There are three lighting types used to enhance a home: natural, task and accent.  All of the types serve a distinct purpose and should be addressed as you prepare to stage your home. The lighting should not only be practical but also create a symphony for the eyes.

Achieving the best natural light is done by opening the blinds and shades. Staging the home should include pulling back curtains and sheers. Remember to remove screens in the winter and clean windows year round so the greatest amount of “clean” light shines through. The same is true for skylights.

Task lighting is pleasing and practical in places like the kitchen, reading areas and office. Ample illumination above kitchen counter tops ranks high on the checklist of important lighting.

Accent lighting is used to highlight architectural features or artwork. Key areas such as the foyer should have lighting installed that will add impact. Lighting accents in the living and dining rooms should create a warm feeling that can make one think of family gatherings.

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I have been selling Berks County homes for almost 20 years and have extensive new home construction experience. In the mid 1990’s, Better Homes & Gardens advised that when building a new home 3% of the overall cost should be spent on lighting. Wow, this would be $9,000 for a $300,000 home. The builder lighting allowances at that time were closer to $900 than $9,000. This left many homes in our area grossly under illuminated. It was considered an extra just to get a light fixture on a bedroom ceiling.

When I photograph a home I often use strobe flash units to achieve a satisfactory level of luminescence. The process greatly enhances the look of a home. This is obviously important when 90% of home shoppers use the web and look at the home photos first. It has become the new first impression.

Make sure light fixtures are clean and free of dust and cob webs. Replace all the bulbs with new clear incandescent bulbs of the same or greater wattage. I am a big fan of GE® REVEAL light bulbs. They make the wall colors look very natural. Do NOT use CFL twist bulbs. They take too long to warm up.

Before investing in any costs associated with adding lighting to your Berks County home, find out what your home market value is. A qualified Realtor® can help you properly value your home.

It is important to understand what you may get out of your efforts before you pay for them. My general rule is as follows: For every $1 you spend on enhancements get $2 back. This is for enhancements not repairing something that is broken or worn out. That is another rule for another article.

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There are many ways to light a Berks County home. Here a few:

1.  Track Lighting: Track lighting is one of the best lighting alternatives out there; it is a good solution for areas that are hard to illuminate or add lighting to. The system comes with individual lamps or lighting heads that fit into tracks which can be secured to the ceiling. Track lights can be installed to suit your space; and with different choices and colors to choose from, you would end up with a custom configuration that is tailored to your needs. Once you put the tracks in place you can reposition the lamps to vary the lighting effect. The power comes from an existing ceiling junction box which allows for an easier installation compared to adding multiple recessed lights that may require remodeling. There are different choices in shapes and lamp sizes; they can be good for modern contemporary and transitional designs.
2. Wall Sconces: Wall sconces are also accessory lighting, it can be used on walls in rooms that are not getting enough light. It can also be considered as mood lighting and can be used to light small narrow hallways and bathrooms.
3. Pendants/Drop Lights: Dropped or pendant lights are good choices for the kitchen. They come in different finishes and styles. The most popular ones are those made with glass shades that come in different shapes and colors. They can add function and elegance to an otherwise busy area. Adding three pendant lights above the bar or peninsula can add brightness and elegance that can reflect beautifully on granite counters, showcasing the beauty of the design. They are very functional allowing people to see clearly what they are doing.
4. Chandeliers: A chandelier is commonly used in dining rooms. It becomes the focal point taking center stage, enhancing the beauty of your fine furnishings. Use a dimmer to control the brightness of the glow. When the light is dimmed, a soft, glowing atmosphere similar to candlelight is created, giving intimacy and fine dining experience. Chandeliers can also be added to a formal living room adding grandness and beauty to the room.
5. Table Lamps: Used for mood lighting, the table lamps are best used in bedrooms and in the corner of the living or family room.
6. Buffet Lamps: Usually taller and slimmer than an regular table lamp, buffet lamps are used on top of console table to showcase design elements as well as foods displayed on the buffet table.
7. Desk/Task Lamps: Desk lamps otherwise known as task lamps. They are so called because they function for you to see closely what you’re doing. Whether it is reading, writing, or working on a computer. Mostly seen in offices and libraries, desk lamps are very useful and work oriented.
8. Torchiere and Floor Lamps: Usually used in dark corners of certain rooms, this adds mood and brightness to the space. This is a common choice of lighting in bedrooms and family rooms. Torchieres are so named because they are like torches with the light going upward. Some floor lamps are like table lamps that make use of lampshades, with the light focusing downwards.
9.  Ceiling Lights: These are usually single light fixtures that are placed closely to the ceiling, without a drop. They come with glass covers of different shapes, sizes, and colors. Used along hallways, bathrooms, and foyers.
10. Recessed Lights: These lights are usually used in kitchens and hallways. Newer homes come with recessed lights instead of ceiling light fixtures. The recessed lights are installed by cutting holes through the ceilings and inserting canister lights that come in different diameters and styles. Recessed light installations are best left with professionals, by hiring a licensed electrician to add electrical connections for those canister lights.
11. Under the Cabinet Lighting: Seen in kitchens, mounted under the cabinets, this type of lighting can brighten up the lower areas close to your countertops that are otherwise overshadowed by the cabinets. Some of these lights are low voltage halogens or fluorescent lights that do not emit too much heat since they are too close to the cabinets.
12.  Picture or Display Lighting: If you are an art collector, you may want to use picture lighting to highlight your collection of paintings, printed arts, and photographs. Display lighting can be used inside curio or China cabinets so that your display items are seen even in the dark.
13.  Spotlights and Up Lights: Spotlights can be used to highlight an art piece like a piece of sculpture. Up lights can be used behind a tall plant to give a glowing shadow, adding ambiance and beauty at night.
14. Utility Lights: Lights used in the laundry, garage, work areas, and storage closets are called utility lights. They are oftentimes just a lamp with a single bulb that is clamped on to tubing or sometimes suspended on a chain from the ceiling. They are oftentimes unattractive because they are mostly used just for their utilitarian purposes.
15. Mirror or Vanity Lighting: Vanity or mirror lighting are oftentimes a long strips of lighting, consisting of two or more bulbs. They are used to show clearly the person’s appearance against the mirror. Mirror lighting needs to be bright but not glaring. The best mirror lighting surrounds the face with light. This provides light from all sides that minimizes shadows under the chin, eyes, cheeks, and forehead. Some bathroom vanities are equipped with ‘Hollywood’ style lights (those strips that use the round light bulbs), however, a wall sconce on either side of the mirror can work nicely without being too overbearing.

If you are considering putting your home on the market or simply want to know what its present value may be, call me. It is an honor to be invited into someone’s home. The visit will definitely be enlightening

Sincerely,

Jeffrey C. Hogue

That was then. Now we have words like “Zestimate®” and spend more time telling prospective Berks County home buyers and sellers what it is and is not. And why they should not fear it.

A Zestimate® is the brain child of the real estate search site known as Zillow.com. It is Zillow’s preferred method of estimating the value of property.

You see, when Zillow was in its infancy they an attention getter. Few things draw more attention in real estate than getting an estimate of your properties value. It certainly did its job. As the site grew in popularity the Zestimate® was no longer just an attention getter. It became controversial.

The heat was turned up and Zillow was forced to add a disclaimer to every Zestimate®. Which states the following…” A Zestimate® home valuation is Zillow’s estimated market value. It is not an appraisal. Use it as a starting point to determine a home’s value.”

Zillow.com states it is a “Living Algorithm” that is affected by external bits of information about a property. The force that has the most effect on the Zestimate® is information about the property that is directly inputted into Zillow.com. The second most influential item is the Public Record of the property.Sooo What is a Zestimate®? It is an algorithm. What is an algorithm you ask? It is a set of rules for solving a problem in a finite (or fixed) number of steps.

The problem with any algorithmic computation is information. Bad information leads to less accurate results while good information leads to more accurate results. This assumes the algorithm itself works.

If there is no information, about a property, Zillow will not show any Zestimate®. For example, Texas is a non-disclosure state (the only one in the US). If your property is in Texas and your real estate agent does not enter

your home into Zillow there will be NO Zestimate®. If your home is in any other state in the USA and public records are available along with limited information you will see a Zestimate®.

This creates an interesting conundrum in Berks County. Our public records relating to property are not exactly what I would like to use to value my customers home. There have been occasions where the Zestimate® on a home I am selling is $374,000 and the property sells for $650,000.

One other challenge the Zestimate® has is that it does not compensate for an adjusting or changing market. If the market was down for the previous 6 months the Zestimate® is likely to reflect a lower price. This is the same challenge Appraisers wrestle with. The difference is that Appraisers understands the market direction better than a computer program and this compensates for it.

If nothing is done to correct the information relating to your property it could be stigmatized by an inaccurate Zestimate®.

One solution is to become a Zillow Zen master. Go to Zillow.com and enter accurate information about your property. Be aware, the learning curve is steep. I have been using technology to assist my customers in the purchase and sale of Berks County homes for almost 20 years. I build my own web sites and interact with real estate syndication companies nationwide. I am still challenged by the Zillow.com interface even after using it for over 5 years.

The second solution is to call your favorite REALTOR® and get a REAL estimate of the value of your home. There are several competent ways to assess your properties value. Recently, I published an article on ways to analyze the value of a Berks County Home. Click HERE to preview Part #1 and HERE to preview Part #2 of the article.

Would you invest your children’s college fund on stock picks from The Motley Fool or Jim Cramers Mad Money? Not likely. Neither should you consider the value of a Berks County property just by using a Zestimate® or any other marketing algorithm.

Call the Realtor® it’s worth it!

Jeffrey C. Hogue

It is no mystery that people everywhere have more stuff than ever before. This is especially true in Berks County where we tend to keep things we know should have been discarded years earlier.

Now it is time to sell that Berks County home but there is one problem…You cannot find it through the clutter.

What to do? Well, if you are a true Pennsylvania Dutchman it is time to “RED UP”. If you are not, then de-cluttering will have to do.

After you have disposed of all the things you can bear to part with, moved some furniture around and done some sprucing up it is time to call the Realtor®.

If that Realtor® is me it is likely we still have some work to do. When I photograph a home it is important that it is displayed to the world without anything that may take away from the homes natural beauty. This normally means clearing off all kitchen counter tops, boxing up knick knacks and moving more furniture. In general, make it look like you barely live there.

Clean, cloistered lines are in. While your Keurig® coffee maker is awfully cool it does not outdo the granite counter top I am going to sell underneath it. Simply having too much stuff lying around, no matter how decorative, can be a distraction to a prospective buyer. Limiting these items is helpful to their vision of your home.

When it comes to furniture less is more. There is prime real estate underneath that 12 ft dining room table with 2 leafs in it. Especially when the floors are made of finished wood. Avoid angling cabinets, chairs & benches in the corners of rooms. The practice will shorten the room. If that was the intention the home designer would likely have put an angle there when the home was built.

The first impression of a de-cluttered home is a valuable thing. Now it is time to make sure the second impression is just as good, closets and cabinets.

Here is where it gets tough. There are likely things in the closets that have more sentimental value. It may be more problematic parting with these relics. Be strong, I have a solution.

Find SAFE AREA in the home and store as much as you can fit there. Box it, bag it just store it all in the same area. Just not in the closet or drawers. More than one home seller has lost a prospective buyer because the closets looked too small.

Now for the big test…Breathe. It is time to go after impression number three, the basement, garage and attic. Use the SAFE AREA rule here but make one of these areas work for that purpose. You may take an area of the basement and put all the items you keep but do not want spread throughout the home there. Of these three areas try to keep the garage de-cluttered. If there is no basement or attic use the garage.

A prospective buyer views the great home photos on the internet and calls for a visit. The home looks as good as the photos and they are very interested. Now it is time to look deeper. They will likely open the closets and kitchen cabinets. If they are pleased with the space and condition of these areas they move on. The garage, attic & basement are clean and de-cluttered (except for the orderly area of items in the rear of the basement). The buyer is pleased and you are a big step closer to the goal of selling your Berks County home.

Today’s buyers tend to look at homes a bit differently than in the past. There are plenty of HGTV type shows to choose from. It is as if they expected you to take care of their home all the years you resided there until they find it and buy it. With the right guidance from the right Realtor® the buyer will pay you fairly and handsomely for taking care of their future home.

Jeffrey C. Hogue

How can the value of a home go up when a home appraisal uses trailing information to substantiate that value? This becomes even more of an issue when the last 6 to 12 months of home sales reflect lower prices. Hmmm…

In past years new home construction was the tide that raised all boats. When there is a new home subdivision in a community the seller/builder sets a price for the homes on the available lots. Buyers visit the site and order homes. Many times the buyers add extras and options to the homes. This allows the appraisal values to climb. This elevates existing home values because the appraisers have comps (Similar homes that have sold for more money).

The issue that exists in Berks County is the lack of available building lots and approved subdivisions. The economics of the last 6 years put many builders out of business and Banks were not loaning money for land development. No new home construction…No rising tide.

The other appraisal dilemma was created by the Fed. Why is that not surprising. After the free-for-all home market, when 2 bedroom row homes were appraising for $120,000, the Fed overreacted and created specific rules on how the lenders communicated with Appraisers. They decided that there should be NO communication.

Now what you have is a situation where the Lenders use an Appraisal Management Company (AMC) to locate appraisers to do the appraisal. The AMC sends out an email to many appraisers. The first to respond gets the job. These appraisers take the business at around $250.00 per job. This is about half the amount most appraisers get to do a conventional home appraisal.

What takes place next is obvious. The well qualified local appraisers pass on these because they will not work for half pay. These well qualified appraisers are able to substantiate differences in value, condition of market, quality of construction, Etc…They are busier because they dominantly do work for local lenders who do not use the AMC’s. Local lenders tend to pay more for the work and draw from a pool of 5 or 6 local appraisers that they deal with on a regular basis. This creates a trust of opinion between the appraiser and the lenders underwriters.

Larger Home Lending Companies tend to lean towards using the AMC’s. Try appealing a low home appraisal to an appraiser who just got paid half to do their job. Will they put any extra work into the appraisal? They may not attempt to, or do not know how to support value adjustments and make a case with the Lenders Underwriter. If this is the case you (buyer and/or seller) are left to deal with the issue of a home that did not appraise.

My advice to home buyers I represent is to ask the home lender they choose how the appraisal is ordered. Also ask for a copy of it when completed. Even though the buyer pays for the appraisal, it is the property of the lender. Read the small print.

My advice to buyers and sellers I represent is to include an Appraisal Contingency to all agreements of sale if a mortgage is needed to purchase the home. This sets a time limit to get the appraisal ordered and completed. If there are issues with the appraisal it can be displayed to all parties contractually and early in the transaction. It is not nice to have the home not appraise. It is even worse in the 11^th hour of a deal.

Appraising a home is far from an exact science. It is simply an educated opinion of value. The appraisal is a critical part of most transactions. The more educated the appraiser the better the opinion.

For more on this subject and how a home’s square footage affects an appraisal visit my web site at and read the article The Berks County Home Square Footage Mystery.

Special thanks go out to Steve Jamison of Jamison Appraisal Services.

Jeffrey C. Hogue

The question seems simple enough. The answer is not that easy. The answer is even more complex if there is a mortgage involved. The National Association of Realtors states that approximately 65% to 70% of all buyers obtain a mortgage to purchase their home.

The first thing we need to find out is the interest rate and term of the mortgage. For this example I will use a mortgage amount of $100,000(easy math). Our interest rate will be 3.75% and the term of the mortgage will be 30 years.

The principal and interest payment is $463.00. What this means is for every $1,000 borrowed the cost is $4.63. This is the “COST FACTOR”.

Ok, just to make sure this is clear…If you take a mortgage of $250,000 at 3.75%  interest and 30 year term the principal and interest payment would be $1,157.50 ($4.63 x 250).

That was the easy part…Really!

Now let’s add the property taxes. If the taxes on our $100,000 home are $3,000 per year, (County, Township & School), that adds $250.00 per month to our payment. If the taxes are higher, let’s say $3,600 per year, we would now add $300.00 or $50.00 more per month.

Here is how the COST FACTOR works…That extra $50.00 per month would buy us $10,800 more house. This is over 10% of our mortgage amount!

Remember, each $1,000 we loan to purchase the home costs $4.63. The extra $50.00 does not seem like much until you look at the COST FACTOR ($50.00 divided by $4.63=$10,800). Now it looks more substantial.

There are homes in Berks County that are priced in the $300,000 range with taxes of $6,000 per year. Others at the same price may have a $9,000 a year tax bill. Yes, a whopping $3,000 difference or $250.00 more per month. Let’s put our COST FACTOR to work here…$250.00 divided by $4.63= $54,000 more, WOW!

Other factors that can have an impact on the COST FACTOR are homeowners’ insurance, private mortgage insurance (PMI), utility costs & travel costs (location).

Every time you spend $4.63 towards your home purchase it has a purchase value of $1,000. If you do not have 20% down cash you will likely pay PMI. There are ways around this.

It is important to get utility costs on a home you are purchasing. This will give you an idea of how well the home is insulated and how the mechanicals are functioning. If the costs are unusually high there could be a problem. There goes more $4.63’s out the window or chimney.

If you purchase a home farther away from your job, family, schools and shopping because it is less expensive think again. With the cost of gasoline where it is you can burn a lot of $4.63’s? Not to mention wear and tear on vehicles and the time you will never get back.

The moral of this lesson is simple…Call a Realtor® with a good calculator and a solid understanding of how your $$$ work when purchasing a home!

Jeffrey C. Hogue

If you have not read the articles yet here are the links:

SIGHT- Berks County Home Buyers Need to See the Light
SMELL- Berks County Home Buyers can Smell a Good Deal
HEARING- Berks County Buyers Hear What Your Home is Saying to Them
TOUCH- Simple Touches Can Lead to a Successful Berks County Home Sale
TASTE- Taste Affects The Intrinsic Value of a Berks County Home

The most important sense to a Berks County home seller is the sense of VALUE! “What is my home worth?” This is often the most requested piece of information most Berks County home sellers want.

Yes, they want to hear what I can do to sell their home, where I advertise and how long I have been selling Berks County real estate. But they all pale in comparison to the main question…HOW MUCH?

It is not always easy to answer this question without considering many different factors about the home. The home seller’s circumstances can play a role here but it normally equates to a timing factor more so than a value consideration.Only a qualified realtor in Berks County is qualified to value your home or farm for sale in Berks County.

After analyzing and reviewing the home, market conditions and many other circumstances, I can normally give the home seller an accurate range of value for their Berks County home. There are many Berks county homes for sale, and listing prices for homes in Berks County, PA vary greatly. My valuation may or may not please the home seller, but it will honestly be my best educated opinion which is as good as it may get in Berks County.

I always offer Berks County home sellers the option of pricing their homes themselves. This is achieved by meeting at my office; reviewing the pertinent market information; explaining and offering guidance and arriving at a price to list the home along with a sales strategy that will meet other goals, such as length of time on the real estate market

If I do my job correctly, the home seller and I will arrive at around the same value consideration. The facts almost always tell the story.

When Berks County home sellers list their property with agents who do not supply valuable valuation information and a proactive plan of action, they are all headed for failure. If you do not agree with your agent’s assessment of your property’s value, high or low, there is an issue. It could be lack of trust in the agent’s ability to competently value your property and do the job you expect. After all, if the agent thinks the asking price is too high how are they going to negotiate the sale for you? It is important that the agent and seller both agree that the home price is correct for the market.

The agent may believe the home is listed too high but take the listing anyway in hopes that you will come to your senses and agree with them in the future. In the meantime, buyers may call them, and they can at least pick up some business off the inventory. Your home!

Either way, if you and your agent are not on the same page as it relates to value, it is likely you will not have a cohesive plan moving forward. It turns into more of a hope-to-sell and a price-seeking effort, aka gambling on the prospect of success.. That is not what you need in this, or any, home selling  market.

After I review the market information compiled on the home with the seller, and before they make a decision, I ask them to do one important thing. Think like a Berks County home buyer.

Take a night out with your wife, friends or family. You can simply go for a walk, but whatever you do just leave your home for a couple of hours. While you are out, mentally schedule an appointment with yourself and your significant other, if any, to see a home you want to buy. The home you are going to buy is yours.

Upon returning to the home, think about what you like and do not like about it. Would you pay the price you are considering asking for your Berks County home? Would you consider changing things or fixing that something you have ignored for the last decade? Be serious, honest and candid.

I ask my customers to make notes and share them with me afterward. Even better, set up this appointment with me, and I will show you the home. At the least you will find out a lot about how proficient I am when showing your home.

It is important that my Berks County home sellers and I are on the same page when it comes to home valuation. This is often the basis for our whole home selling plan. It could also be a reason not to list your home at this time due to negative value consideration.

A home market analysis is much more than finding out what other homes in your area have sold for. There are many other factors at work here. In my 19 years, I have compiled many ways of considering a Berks County home’s value. The thing I make sure of is that if the home is not selling, it is not due to a lack of marketing or effort on my part. The effort and marketing will always be there.

Take it from my over 1,000 customers, I always have a plan!

Sincerely,
Jeffrey C. Hogue

So you’re a buyer looking to purchase a home in Berks County. Locating real estate in Berks County has become easier than ever before. There are literally thousands of web sites with home search tools for you to utilize. Some have more reliable information than others.

You look at some real estate in Berks County and a home catches your eye. You would like to know more about it. Maybe even schedule a preview.

Some web sites make it easy for you to contact the Listing Agent of the real estate. They supply phone numbers, email addresses, information buttons and even forms for you to supply your contact information so the Listing Agent can reply. Sometimes you are given a choice to contact one of several Buyer Agents.

So what should you do about the real estate in Berks County you are interested in? Who should you contact about the home you want to see.

If you are simply curious and looking for information on the home, you may want to contact the Listing Agent. This is the person that likely knows the most about the property. If you want to see one of the Berks County homes you may consider using a Buyer Agent. In either case it is best to understand your rights.

Berks County real estate and the real estate industry in general has this thing called “Procuring Cause”. You may ask, “what is it?” Good question. Many people in the real estate industry are not even sure. Here is one take on it….

Procuring cause is a complex issue (understatement), and no one action ensures that you’re entitled to compensation (commission) after a sale. Appendix II to Part 10 of the (Realtor) Code of Ethics and Arbitration Manual gives a basic definition of procuring cause as “the uninterrupted series of causal events, which results in the successful transaction (purchase of property).” Neither showing the property nor having a buyer’s representation agreement with the purchaser automatically demonstrates procuring cause.”

To better understand the Pennsylvania Real Estate Agency Act and preview a copy of the Pennsylvania CONSUMER NOTICE CLICK HERE.

So what does this have to do with you? You simply want information about a Berks County home. You may just want to see it, and if it suits your needs, buy it. You don’t want to be married to a Berks County real estate agent or feel obligated in any way.

Most Berks County real estate agents, who list homes, readily take calls and answer emails from prospective buyers. In most cases they do so without claiming procuring cause.

I, for one, am glad to supply property and/or Berks County real estate information to buyers who call about real estate I have listed for sale. If those buyers decide to use me to purchase the home they called about that is fine with me. I am sure to explain their rights and disclose the agency relationship that exists between me and the property owner. In most cases, the buyer is totally aware that I represent the property owner when they call. If the buyer decides not to purchase the home they called about, it is my hope the buyer will consider having me represent them as their Buyer Agent. Either way, the property information is available and no agency relationship is required. If a buyer desires to work with us we are more than happy to do so.

You see, when I list a home I represent the seller. My job is to sell the property. I can supply a prospective buyer with information on a home I have listed for sale. I can even draft an agreement of sale for the buyer to purchase the home, but I still represent the seller. I do it all the time:)

I will repeat this….A Sellers Agent is contracted by the Property Owner to sell the Property.

Ok, if that is clear we can move on to my reason for writing this particular Berks County real estate blog.

It is my opinion and practice NOT to SELL a property to a Buyer who has contracted me to represent them in the search and subsequent acquisition of a Property.

When a buyer walks into a home, if they like it, no selling is needed. If after acquiring and sharing all the information I can about a home, I still have to sell my Buyer on that home, it is the wrong one for them. I have yet to work with a buyer that liked me so much that they were willing to purchase a home they did not like.

The Buyer likes it! They need reason not to! It is time to exercise caution! These cautions, if any,  should come from the Buyer Agent.

My philosophy is simple. Work for the customer, not myself.

Having a great Buyer Agent is very rewarding. A great Buyer Agent can assist in finding the right properties to investigate. This saves time and money. Opportunities will be more abundant and information valuable. Buying a home has become increasingly complicated. It is therefore imperative to have an agent that understands the rules, regulations and competent practices associated with purchasing real estate in Berks County. A great Buyer Agent has great contacts. You may need advice on a mortgage lender, home inspector, contractor, conveyancing, etc…

The message here is simple. Buying a home may be the most important thing you do. Where you live shapes much of your life. It influences the people you meet, friends your children will grow up with, the way you drive to work and so much more. This is a time when you need someone who is not going to sell you anything. It is a time when you need someone who will apply reason, experience and knowledge when it is needed. Even if it means NO SALE on a particular property.

Hire a professional that can truly assist you with this profound undertaking. Maybe hire one that has been in the Berks County real estate industry since 1993 has lived in Berks County for (almost) 50 years and has assisted hundreds of buyers acquire real estate in Berks County PA. Sorry, just could not help the selfless plug:)

Sincerely,

Jeffrey C. Hogue