Okay, not that kind of hot . . . in fact, cold and snowy. But the real estate market is HOT right now. We have entered the spring market early and strong with home sales looking to possibly exceed last year’s sales, even without the government’s tax credit.

So what does that mean for you? If you are a home buyer, this is not a good time to be laid-back. I know our general tendency is to avoid commitment as long as possible. We don’t want to sign on with an agent. We’re worried that we’ll be bombarded with calls and e-mails and high-pressure sales tactics. I understand that. I’m the same way. But if you find the right agent, he or she should make your experience easier and more enjoyable, not overwhelming and more pressured. In the East End market, properly priced homes in good condition are selling exceptionally quickly. It is not unusual for homes to be under agreement in less than a week. In fact, our Howard Hanna office has “sold” several homes before they even reached the MLS. If you are not partnered with an agent who knows the market and the inventory and has access to those homes that are not “publicly” available, you will likely not be able to move quickly enough to buy that perfect house when it becomes available. So go ahead, interview some agents, find someone you have confidence in, and take the commitment plunge. Once you have an agent or even before, you should get pre-approved by a reputable lender and find out what price range you are qualified for. You will need to have everything in order so that when you see the home of your dreams, you are poised for action.

If you are a home seller, things are really looking up. Even properties that have been languishing on the market for months are starting to move. Pittsburghers are gaining confidence in our local economy and are diving into home purchases. If you have a home to sell or are considering moving to a bigger home, this is your time to act. Move quickly, but don’t rush. Get your house cleaned and staged and ready to go before you list. Don’t get greedy. Even though the market is strong, you have to be priced competitively if you want a fast sale. Does that mean giving your house away? Of course not, but it does mean having your agent advise you on what other comparable homes have sold for in the last six months and, more importantly perhaps, what competition is out there on the market right now. As more houses hit the market and inventory increases, your home will face stiffer competition. Remember that the vast majority of home buyers begin their search process online so ask any prospective listing agent what they plan to do to market your home on the Internet.

And get out there and enjoy the sun. It has to shine one of these days.

I’m guessing that this is because Google is continuing to expand its presence here in Pittsburgh and Googlers are using my site as a source of neighborhood information and to search for homes. And I couldn’t be happier!

I’m working right now with a Google engineer and her husband and I think I’m getting close to finding them the perfect Pittsburgh home. I’m so impressed with Google’s Pittsburgh office (pinball machine, pool table, and snacks — what’s not to love?) and I think the influx of Googlers is a huge benefit to the city. So welcome Googlers!

I hate when websites require me to register to use their search capabilities or gather information and so I don’t do that on mine. Feel free to bookmark my site and use it anonymously as often as you like. On the other hand, if you are accepting a job offer or headed into Pittsburgh for a visit or an interview and would like a no pressure tour of the city’s East End neighborhoods or nearby suburban Fox Chapel, please don’t hesitate to call me on my cell at (412) 606-0408 or e-mail me at meryl@picturingpittsburgh.com. I would love to show you around.

If you know anyone who might be eligible for this program, spread the word. If they have any questions or want to take a look at some of the homes available in America’s Most Livable City, have them give me a call at (412) 606-0408.

When you engage an agent to list your home for sale, please don’t assume. I have seen too many listings with bad and/or too few photos. I have seen too many listings without a slideshow or other type of video tour. I have seen too many listings that are not disseminated properly to Zillow, Trulia, or any of the other myriad Internet sites that buyers use first when they are searching for homes. I have seen too many listings where the agent hasn’t bothered to draft a description for the home’s photos (a bedroom being labeled as “Exterior” because that’s what the MLS automatically generates, for example). I have seen too many listings where the agent doesn’t update the photos and snow-covered homes still appear in May. I have seen it all. That’s because I look.

It’s my job to look. I look at listings online and in person every day. But if you are a seller you also need to look. Examine your listing online. Make sure it best represents your home. Google your home’s address and see where your listing is appearing. Of course, you should ask all these questions of your realtor before you sign the listing agreement, but please don’t assume that the job is being done to your standards. Most realtors are ethical, responsible, and thorough. But some are lazy, scared of technology, or have too many listings to properly service.

So please don’t assume!

Okay, back to Freddie and Fannie.  For those of you who don’t know, Freddie Mac and Fannie Mae are the nicknames for the government established entities that buy up private mortgages.  By creating these institutions, the government’s intention was to ensure liquidity of mortgages and free up banks and other lenders to loan more cash to another borrower.  During the mortgage crisis, Freddie and Fannie were hit hard, and the government ended up bailing them out and taking them over.  What will be done with them in the long term is under debate right now, but in the short term, the government is looking to inject some more money into into these two ailing siblings.

So here’s what they came up with.  From now on, people looking to purchase a home with a conventional mortgage attached will be subject to some possible additional costs in the form of points.  We normally think of points as upfront cash charges being used to purchase a lower interest rate.  These points, however, are price adjustments that do not reduce a home owner’s mortgage rate, but are simply added on to the costs at closing.  They are intended to add cash to Freddie and Fannie’s coffers while attempting to adjust the purchaser’s fees to take into account the lender’s actual risks.  The formulas are complex, but in general points are higher if your credit score is lower and also increase the more money you are borrowing.

What does this mean for you as a potential home buyer?  Prepare early.  If you know you want to buy a home soon, be careful about your credit.  Consider transferring balances and paying down and consolidating debt.  Visit a qualified loan officer who can navigate this process for you and provide you with an ACCURATE cost sheet of what it will cost you to purchase your home.  If you are in the process of buying a home with a conventional mortgage and have no points identified on your cost sheet, ask your loan officer or real estate agency about that now, or you may have a very unhappy surprise at closing.  Choose your loan officer and agent wisely.  As this process becomes more complicated, it will be to your benefit to have smart, hard-working people on your team.

Carrie Cohen, our Howard Hanna’s office loan officer, is excited to face this challenge.  Yes, it makes her job harder, but it also makes it more challenging and rewarding.  She can help a home owner decide which of the myriad options (conventional or FHA, PMI or no PMI, etc.) will in the end be to her client’s best advantage.

What does this mean for you as a potential home seller?  Ask your real estate agent if he or she is knowledgable about these new regulations.  Unfortunately, I bet most are not.  And your agent will need to review any offer carefully to make sure that the buyer’s offer accurately takes account of these regulations when stating what his mortgage rate and points will be.  Otherwise, the contract is effectively breached at the onset and your deal could fall apart.  Your agent may need to contact the buyer’s lender directly to confirm pre-approval.

At the end of the day, these are not huge additional costs.  They merely serve as an additional reminder that buying a home can be a complicated process.  If you are paying for the services of an agent anyway, make sure you hire someone who can professionally lead you through this path and save you money and heartache along the way.  Similarly, when shopping for a mortgage, as I have said before, don’t fool yourself into thinking it is like shopping for a toaster oven.  All lenders are not the same.  I make no additional money from clients using Howard Hanna’s financial services, but I feel a lot more confident that the deal will close satisfactorily when they do.

CLICK HERE TO SEE 1419 SEVERN STREET’S SINGLE PROPERTY WEBSITE

The museum also offers special events and this Saturday, October 23, from 6 to 9:30 PM, they will be hosting a lantern tour.  It sounds like a spirited but not too scary way to enjoy the October season.  The lantern tour offers a guided tour of the museum and cemetery by, you guessed it, lantern light. Guests will be treated to gentle tales, superstitions and customs from the past. You might even be lucky enough to catch a glimpse of The Deacon, the Museum’s resident, benevolent ghost, before ending your evening with cookies and hot cider! The tour is described as appropriate for all ages.  Admission: $5/adult, $3/children

I won’t be able to make it because I will be attending a wine club that evening.  Sounds fun, doesn’t it?  So if you do go, please let me know how it is so I know whether to recommend this tour in the future.

Federal Chairman Ben Bernanke has indicated his belief that economic conditions may warrant further quantitative easing by the Fed (nicknamed QE2). For those of you who may not know, quantitative easing is a mechanism by which the Federal Reserve increases the money supply. These funds are then used to purchase assets (in this case the Fed will likely purchase treasury bonds). This will result in giving banks excess reserves, which presumably will be lent out or otherwise injected into the economy, hopefully stimulating growth. The Fed will be meeting on November 3rd and most economic pundits anticipate that QE2 will be placed into effect at that time.

So the big question for prospective home buyers or refinancers is: what effect will QE2 have on mortgage rates? If I’m intending to purchase a new mortgage, should I lock in now or wait until the beginning of November? Theoretically, if the Fed purchases additional bonds, this should cause mortgage rates to decline. Economic principles would suggest that the additional demand for treasury notes created by the Fed’s purchases should cause the prices of these notes to increase. This will cause the yield on these bonds to decrease. Mortgage rates generally follow treasury yields, so if yields decline, so should mortgage rates.

But here’s the rub. We have seen mortgage rates hit all-time lows for the last four weeks. It is possible that the impact of QE2 already has been reflected in the price of bonds, as most experts already expect QE2 to occur. If this is the case, mortgage rates might not move much at all next month or will only move significantly up or down if the size of the stimulus package is much greater or smaller than the market expects. I know, this is not very helpful. I guess if you’re willing to withstand the small risk of an upswing in the rates, and you have the luxury of some time, you might want to wait until November 3 to lock in your rate. At least you won’t have to wait that long to find out if your gamble has paid off!

But wait, there’s more!  Although the PSO will begin its performance at 7 PM, students from area schools and organizations will be performing before and after the main event.  Beginning at 6 PM and ending at 6:45, you can enjoy

• Dilworth World Drummers
• CAPA Jazz Combo
  
• Hope Academy‘s EL CEO (East Liberty Community Engagement Orchestra)
• Hope Academy’s Theater Company Singers and Rock Band (HAT Co) [Drew is singing with the HAT Co group]