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“Sick” soup recipe

February 9, 2023 by Jennifer LeBow Leave a Comment

Recipe for soup to eat when you're sick — The perfect soup for someone who is under the weather

Jen LeBow’s “Sick” Soup

I am not of the generation where I use the word “sick” to mean anything good. This soup is a clear broth with ginger to soothe the stomach and dark leafy greens to provide important nutrition when someone is under the weather.

Heat 2 T water in large pot over medium heat.

Add 2 T minced fresh ginger

Saute water and ginger 1 minute

Add 14 cups vegetable (for vegan soup) or chicken broth (3 ½ quarts)

Heat on high to boil

Reduce heat to medium and simmer 5 minutes

Add

8 cups fresh spinach or kale, chopped

1 cup sliced mushrooms

2 T minced scallion

1 t minced garlic

Simmer 2-3 more minutes

“Granny flats” (or ADUs) on the Main Line

December 15, 2022 by Jennifer LeBow 1 Comment

Relocating to Philadelphia — While legal in many areas in the western US, so far, granny flats, or ADUs are not permitted on the Main Line.

What is a “granny flat”?

I learn a lot about real estate in other regions from my buyer clients who are moving to the Philadelphia area. The things they assume, the questions they ask, as well as the questions they don’t ask all provide a window into the kinds of neighborhoods they came from and what they consider “normal”. Several of my buyers coming from the western United States ask about building ADUs. These accessory dwelling units are small, ancillary residential buildings that are added to a lot where there is already a house. They are often known as granny flats and are usually intended to house a family member, though, in certain areas, they are also rentable to tenants.

Who wants an ADU?

During COVID, there was a huge spike in demand for multi-generational residences. People wanted to be able to spend time with extended family in a comfortable way. Lots of additions were built, basements were finished as independent living spaces, often with not only bathrooms, but kitchens as well. Clearly, the ADU is a perfect candidate for enabling a property owner to accommodate, perhaps long-term, additional people (whether family or not).

Can you have one in the Philadelphia area?

Imagine how disappointed my clients were when I told them “we can’t do that here”. It’s true! And it’s not related to exceeding impervious surface allowances. Even with a large lot, they are not permitted. You can find them on some of the old estates on the Main Line, but those are grandfathered and usually at least 75 years old. The township officials were not able to provide any reason for this restriction, but most areas in PA are the sam. (There is a variance for historical properties within the city of Philadelphia, intended to allow more density on some of those properties without compromising the historical architecture.)

What ADU alternatives are there?

What can you do? You can build an addition, you can convert your basement (though it has to meet specific egress guidelines which vary township to township) and you can repurpose an attached garage into living space. While I can’t speak to every locale, every township I’ve asked has said that detached garages can’t be converted. That said, I’ve seen several apartments above garages. From my research, they are not allowed to be used for living space (meaning sleeping, having a bathroom or kitchen) and I expect some of the ones I’ve seen may not be technically legal.

Will granny flats ever be allowed here?

The ADU (provided it adheres to impervious surface allowances) strikes me as a such a great option. I wonder if our local ordinances don’t allow for ADUs simply because those structures started becoming popular somewhat recently and our zoning codes are old? Or if rules and regulations governing them are not on the books because there hasn’t been a demand for them? I don’t know. However, there is, undeniably, a burgoening increase in people looking for separate accommodations that can house people for extended periods of time. Whether due to the desire for family togetherness, or the financial burden many people are feeling to maintain a household, especially if on a fixed income, I think there will be more and more demand for this kind of housing. I wonder if we will see a change in the local legality of these structures.

If you are relocating to the Philadelphia/Main Line area, please go to my blog page and search for posts using the relocation tag. Contact me to discuss your Philadelphia area relocation! jen@jenniferlebow.com/610 308-5973

What buyers wish they’d done differently

December 9, 2022 by Jennifer LeBow Leave a Comment

Main LIne relocation — Here is a list of the 10 most common mistakes home buyers say they made.

Mistakes home buyers wish they hadn’t made

Of course, hindsight is 20/20. Here are10 mistakes home buyers admit to making. Familiarizing yourself with them should help you avoid some significant headaches. Please note, there are countless others, and there may well be a few you still make, However, these are errors that come up again and again when buyers are asked what they wish they had done differently.

1. Not paying enough attention to the property

This mistake can manifest itself in many ways. Here are some examples:

The topography of the lot (the house is in a depression, or it slopes too steeply for the kids to play, or gets swampy in rain). It’s very hard to change the lot. While you may be able to have an excavator terrace it or make other changes, if the house sits at the top or bottom of a hill, that’s unchangeable. Another concern is if the property is located very near a highway or industrial/commercial business. Beyond noises, proximity to roads and certain types of businesses, there can be odors as well. Chemical plants, water treatement plants, gravel pits…..And keep in mind that if you visit on a weekend, if those businesses are closed, you may not be getting an accurate sense of sound/smell.

If you want to build an addition, add a swimming pool, garage or patio, you should not assume that the zoning regulations for the property will allow it. Whether it’s a maximum impervious surface amount, set backs or just certain uses that are not permitted, contact the zoning department of the governing body to find out what is and is not allowed.

2. Not clarifying closing costs early on

Some real estate agents do not address closing costs with their clients until they are writing up an offer, or, worse, a few days before closing! In my mind, that oversight is inexcusable. Where I practice, closing costs (cash, not financeable money) can run over 5% of the purchase price in some areas, so I always discuss it at the first conversation.

3. Foregoing inspections

Buyers have lamented skipping all kinds of inspections: the regular home inspection, termites, pool, sewer line/septic, well, stucco (a biggie in my neck of the woods). If you don’t do inspections, any problems discovered once you own the house (unless you believe they were purposely hidden and not disclosed) are your problems. Any of these inspections can identify issues that are very costly to repair, or might convince a buyer to walk away. If you do discover problems, strategize with your agent to determine the best way to fix them–should the seller make the repairs or provide you with a credit?

4. Not paying attention to the seller’s disclosure

Sometimes, people just sign everywhere their agent tells them to sign in order to submit an offer (especially if there is time pressure to hurry and get the offer in). Please ask your agent to review the disclosure with you so you are not surprised to move in only to learn that the air conditioning needs to be replaced and that the basement gets wet during heavy rain. If the retaining wall in the backyard has shifted (and that’s on the disclosure), you should take the time to either have it inspected or at least understand how serious (and costly) any required repairs are.

5. Not using an experienced local real estate agent

Working with someone new does not necessarily mean you will have a negative experience. Many new agents are smart enough to align themselves with someone who has been in the business a while and confers with that person throughout the process to make sure nothing important is missed. However, that system is not perfect and not all inexperienced agents make use of it. Between understanding the documents, deadlines, lender and title requirements, closing costs, inspection negotiations, inclusions and exclusions, etc., there is a LOT that can go wrong or slip through the cracks. Working with someone with dozens of transactions (or more) under his or her belt will make it much less likely that something is missed or improperly handled.

Working with someone who is not experienced in the area you are considering is also a bad plan. Even if that person has industry experience, he or she may not know, for example, that a particular development has many houses that have stucco problems, or that a new school is going to be built just around the corner, creating eyesore and noise in the short-run and increased traffic in the long-run. The agent may be unaware of unusual local ordinances like not being permitted to install a fence or add a garage. So be sure to work with someone who sells homes in your target area.

6. Not learning more about the community/neighborhood

Some buyers have reported that they focused solely on the property and house and didn’t take the time to learn about the neighborhood. The community you live in determines the convenience of getting to places you frequent (whether that’s work, shopping, dining or simply general highway access or public transportation). It also influences who your neighbors are. There are on line sources for data regarding the percent of renters vs. owners, the average income of the area, crime statistics and more. You can also determine the way certain areas vote, if the political leaning of the neighborhood is important to you. Please be careful in whatever research you do, including talking to local people, to not ask questions that could be construed as discriminatory in any way. Along those lines, remember that real estate agents are subject to fair housing laws and cannot answer questions about the make up of a neighborhood when it comes to race, familial satus, sexual orientation, religion, nationality, etc.

7. Inclusions/Exclusions

Make sure you understand what items in the house and on the property are included and excluded in the sale. The trampoline? Fire pit? How about the bathroom mirror, televisions, curtains, refrigerator and washer and dryer? Check with your agent and tell him or her which things you would specifically like removed or included.

8. Skipping the walk through

While the walk through is an opportunity to make sure that the inclusions and exclusions discussed above are as they should be, it is about more than that. You should make sure there are no new leaks (in pipes, roof or basements), broken windows, doors or locks. Check that the heat/ac are working properly and that the water heater is still working. Finally, note whether any repairs the seller has agreed to complete have, in fact, been done. And if the seller is NOT entirely moved out, make sure your agent contacts the listing agent to confirm that everything that should be removed will be gone prior to settlement, including the trash.

9. Not reading HOA rules

The complete HOA rules and regulations must be provided to the buyer prior to settlement. The buyer has five days (here in PA) from receiving them to terminate and receive all monies back. Unfortunatley, since these documents can be long and tedious, some buyers don’t read them carefully. Doing so is the buyer’s responsibility, so take the time to read through them. Can’t have a grill? No fences allowed? Not permitted to park an RV in your driveway or paint your shutters a different color? Can you have a garden or plant a tree? If these things matter, read carefully.

10. Not considering costs associated with a larger home

If you are considering purchasing a home appreciably larger than where you are coming from. do not neglect the costs of heating/cooling, furnishing and cleaning a much bigger house. And with any house, don’t forget to budget for routine maintenance. Whether the heat needs to be replaced, the roof needs repair or it’s time to reseal the driveway or power wash the deck, houses cost money to maintain. Budget accordingly.

How home sellers need to adjust to new market

November 25, 2022 by Jennifer LeBow Leave a Comment

Sellers need to adjust to the new market — Learn what you need to know to adjust to the current real estate market.

First of all, at least in the Philadelphia area, prices are not plummeting. So don’t get hung up on thinking you “missed the market”. You might have missed the tippy top prices with people waiving all contingencies but it’s still very much a seller’s market (show kcm chart)

Things you will need to do differently:

Recognize mortgage rates have changed what buyers can afford. Possibly the most important factor affecting what home buyers can afford is the spike in mortgage rates. When a buyer is constrained by a maximum monthly budget for housing costs, the shift in the interest rate from, say, 4.5% (which we saw in the spring) to around 7% (it’s now November) substantially changes what she can afford. The monthly payment for a loan of $400,000 back in April might be the same as for a loan of $325,000 today. So, clearly, the rates affect the price range a buyer can consider. For an in-depth explanation with numerical examples, click here.
Be sure to analyze most recent comps. When you are pricing your home, keep in mind how quickly the market has changed over the last six months or so. Be careful when looking at comparable sales which may have sold when rates were lower, inventory was lower and demand was higher (all of which result in higher prices).
Based on 1 and 2, price accordingly. If you price your home above market value, it will sit on the market and you may end up getting even less for it than you would have had you priced it right originally. You’re better off pricing it slightly below what you perceive as current value in order to promote more showings and competition with multiple offers.
Consider a pre-listing inspection. Personally, I always recommend sellers have a pre-listing inspection. It removes the likelihood of unpleasant surprises down the road. If you know what the issues are, you can choose what to address. Then be sure to disclose everything on the report as well as annotating it to reflect repairs you’ve made. The goal is to eliminate offers that have home inspection contingencies. One obvious advantage of a non-contingent offer is not having the total purchase price chipped away at as a result of inspection negotiations. Another, equally valuable advantage is that non-contingent offers don’t allow the buyer a way out of the transaction once their deposit has been received. (Some buyers who submit offers with home inspection contingencies actively continue to look at other properties and, if they find one they prefer, the use the inspection contingency language to terminate their original contract with the return of all their deposit money. It’s a great safety valve for buyers, but puts sellers in a position of no control.)
Expect more contingencies/negotiations. Be realistic. As the market is becoming slightly more friendly to buyers (though it is still more of a seller’s market, by far, than a buyer’s), buyers will begin to have a little more negotiating power. While this new-found power will be evident in the prices offered, it will also be reflected in other terms of the offers, like the contingencies that are elected. Furthermore, buyers are more likely to push back a little harder when negotiating inspections. Expecting those changes and being prepared for them will help you.
Be intentional regarding staging your home and putting its best foot forward. Earlier this year, sellers did not have to spend much time or effort getting their homes in “show-ready” condition. Inventory was so limited and demand so high, many sellers didn’t feel that that it was worth the trouble. We are definitely starting to see a bigger differnce in the amount of demand for a specific property as well as the final sales price when comparing staged and “readied-for-sale” homes than “as-is” properties. If something is really not in nice condition, current buyers may have more options to choose from. Also, today’s buyers are less inclined to “use their imaginations” and their wallets to enjoy the home’s potential. They’d rather pay a little more at the outset but know they are purchasing a home that needs less work. So pay attention to areas of your home requiring some attention and consider whether staging (with the addition or reduction of furnishings and accessories) could benefit your bottom line.

To state the obvious: the last two and a half years have been wildly volatile and unpredictable. The expectation is that our current trajectory indicates a return to a more “normal” market. However, with high inflation, interest rates which are still leavin some buyers scrambling to understand what they can afford and other global economic factors in play (fuel prices, the Russian-Ukranian war, etc.), it’s anybody’s guess as to what will happen.

I have noticed many buyers choosing to put their home purchase plans on the back burner, expressly to wait until “the dust settles” and they feel they can more accurately assess the economic climate and predict the near future. My guess is that we see some of the pent-up demand from those buyers showing up in the spring market (March/April/May). I also think that there may be some home owners who, with higher mortgage rates to contend with when they buy, opt not to list their houses as they would incur monthly payments that don’t allow them to make enough of a lifestyle improvement to merit a move. The combination may mean another spring market with very high demand and very low inventory which could push prices back up. Who knows? These musings are all conjecture and I’m not Warren Buffet. So don’t take my opinion as anything other than what it is.

Update your home’s hardware for increased value

October 25, 2022 by Jennifer LeBow Leave a Comment

Selling a home on the Main Line — If you are listing your house for sale, just updating some of the hardware can provide significant return on investment.

What today’s buyers are looking for is updated properties, especially in areas when the housing stock is older. While remodeling kitchens and baths certainly makes your house more attractive, those improvements are quite costly and sometimes don’t provide as high a return on investment as you might hope. One of the least expensive, but highest ROI projects you can do is updating the hardware. So….what’s included in hardware?

Hinges–on doors, these only need to be changed if they are a metal that contrasts with the door knobs or levers OR if they have been partially painted. You’d be surprised how often hinges are splattered with paint which make the house look ill-cared for. As far as cabinet hinges, if the color is dated, change them.
Door knobs–not only the color (brushed nickel is much more popular than brass these days), but the style matters. Would levers vs. knobs be appropriate to the archtictural style of the house? If not, look at the choices and select consciously.
Drawer and cabinet pulls–while refacing kitchen cabinet doors can make a big impact, there is a cost associated with it that may or may not be in your budget. Regardless, the hardware of those cabinets also sends a “modern” or “dated” message, so look at it critically and decide if an upgrade is worthwhile.
Light switch plate covers–shiny brass is not what today’s buyer is looking for. You can find white, black, and muted metal finishes that will modernize your home’s look. Pay attention to the switches themselves as well. Might rockers or switches with dimmers make a noticeable improvement? At the very least, make sure your switches are clean and match throughout the house.
Outlet covers–see above.
Lighting: while I’m not suggesting you need to update your ceiling light fixtures and fans (though it’s often a very good idea), you should at least assess whether any of your recessed lighting has dated or damaged metal rings that surround the edges and often give a dated appearance.
Faucets–Some people replace sink and/or shower and tub faucets to update them, but it can be costly; check the prices first.

The cost of the materials discussed above is minimal and if you can weild a screwdriver, you can probably do just about everything yourself. The return on that kind of investment is high and I guarantee you’ll be surprised at what a difference it makes in how updated the house feels.

Investigate housing before accepting a new job

October 24, 2022 by Jennifer LeBow Leave a Comment

Main Line relocation salary vs home cost — Before accepting a job in a new city, evaluate whether the salary offered will improve your standard of living–check housing costs!

Find out what housing costs

Housing is the most variable expense when you are comparing cost of living among US cities. If you are considering a job move to a new area, please don’t accept a salary without first considering what housing costs. Even if you are going to be making more than you did previously, is it enough more to balance a higher housing cost? Do your homework before accepting!

A cautionary tale

I had a client who accepted an offer which sounded like it was a significant increase. He hadn’t done much research on housing costs at that point. We looked for properties for about six months when he finally gave up and rented something. He admitted that he was shocked that the bump in salary actually translated to a step DOWN in lifestyle, as defined mainly by the kind of home he could afford. Even though the job was better than the one he had had in North Carolina, I got the sense that if he’d known at the time he took the job what housing cost in the Philadelphia area, he would have declined the offer.

How to determine housing costs

My advice is NOT to randomly look up properties on the internet that are within a certain number of miles from where you’ll be working. Unless you’re familiar with the area, you might choose a neighborhood with high crime, or poorly rated schools or where everything is in a flood plan. CALL A REALTOR. And just be honest about that fact that you are looking for information. Explain you’ve been offered a position but aren’t sure the salary will enable you to improve your standard of living. Discuss your needs and priorities with the agent and you will soon form a clearer picture of whether, from a strictly financial perspective, it makes sense to take the job.

Terminating a home purchase contract

October 22, 2022 by Jennifer LeBow Leave a Comment

Relocating to Philadelphia's Main Line — Be sure you understand how and when you can get your deposit money back if a home purchase falls through.

How and when can you terminate but get your deposit back?

The answer to this question will vary from state to state, depending on the contracts used in different regions. That said, many states have similar rules. I am licensed in Pennsylvania, so this post will refer to PA contract law. Let me begin by addressing some of the scenarios in which a buyer would NOT have deposit money returned.

When you don’t get your deposit back

The catch-all heading of buyer actions that result in a termination in which the buyer loses deposit money is “buyer default”. Here are some examples of buyer default:

Your inspection period is over and you have not terminated in writing, but decide you don’t want the property anymore. Tough–the seller is entitled to keeping your money.
You do not send in your second deposit by the due date.
You knowingly supplied false information to your lender or on your Buyer Financial Information form resulting in your not qualifying for the mortgage or otherwise being able to financially complete the transaction.

When you do get your deposit back

You terminate in writing as a result of unsatisfactory inspection results–as long as it’s done in writing, using the correct documentation and within the allowable time period.
You terminate due to a low appraisal. This reason for termination results in a return of your deposit as long as you didn’t waive the appraisal, offer any kind of appraisal gap coverage or amend the appraisal portion of the contract in any other way.
You terminate due to another contingency not being met. Beyond apprasial and inspections, if you’ve elected any other continencies (other than the mortgage which I’ll address in a moment), you may be within your rights to terminate with return of deposit if those contingencies are not met.
You do not qualify for the mortgage under the terms set out in the contract. Technically, this topic covers the low appraisal mentioned above, as well as not getting an interest rate below the cap indicated on the contract. Additionally, if your lender will not grant you a mortgage, even after pre-approving you, you get your deposit back (in most cases). There are some nuances here–like what happens if you lose your job or if you don’t get the bonus you were expecting–so speak to your lender about the specifics.
Seller default–this category includes seller behaviors like not making repairs the seller agreed to or not vacating the property by settlement. It also covers actions like not keeping the property in the same condition it was in when the buyer agreed to purchase it, committing fraud on the seller’s disclosure and not settling by the stipulated date on the contract.

Boring but important

While this discussion is not likely to keep you glued to your screen, it is a good idea to have a basic understanding of the circumstances under which you can and cannot get your deposit money back. Talk to your lender about any issues of concern in qualifying (for example, people who own their own businesses for less than two years can have trouble). Talk to your agent about the contract language so you are clear on the “how and when”. The last thing you want is, if a transaction to purchase a house falls apart, to be surprised that you aren’t entitled to your deposit being returned.

Why sellers need to pay close attention to mortgage rates

October 21, 2022 by Jennifer LeBow Leave a Comment

relocating to Main Line Philadelphia — Sellers need to understand how recent mortgage rates increases affect a buyer’s purchasing power.

What is happening in our economy

There is a lot of noise out there as far as housing market predictions. We are currently in the midst of an extremely complex economic situation, with many different factors exerting influence. We have low inventory of homes, high inflation, a spike in mortgage rates, a job market that seems to keep going strong, even though experts continue to predict it to soften, oil prices fluctuating wildly, political events and talks of sanctions and more. Everything I read indicates that there are so many issues in play, all pulling the economy in different direction, it’s impossible to make accurate predictions.

The effect of higher mortgage rates

That murky, hard to dissect economic landscape baffles economists, so it’s no surprise that the average layperson selling a home can’t extract any meaningful data that can help price the house more accurately. Except one: the interest rate increase has a concrete, measurable effect.

Consider a buyer who began a home search when rates were 5% and is still looking today, in October of 2022 when current rates are 7%. As a seller, you need to understand what that difference means in the monthly payment for that buyer. A buyer whose monthly principal and interest budget is $2,167 could have afforded (an 80% loan for) a home costing $500,000 at 5% interest. In order to keep the monthly payment at $2,167 at today’s rate of 7%, the same buyer could afford an 80% loan for a home costing $407,125. Think about that. There is a significant difference in a $500,000 house and a $407,125 house. Similarly, a $1,000,000 house back when interest rates were 5% would equate today to a house priced at $806,875.

Value can’t be based on a simple formula

Please note that I am NOT suggesting that it’s a simple as that–I am not saying that a house valued at a million dollars when rates were 5% is now only worth $806,875. From a strictly mathematical standpoint, if a buyer were putting 20% down on a million dollar home, that would be $200,000. On an $806,875 house, 20% would be $161,375 So that cash “savings” of $39,825 would potentially come into play as far as adjusting the perceived difference in value (as seen through only the interest rate lens). Don’t forget, though, that the loan amount a buyer qualifies for has to do with monthly income. So even if you look ONLY at mortgage rate increases, there is still no simple way to recalibrate home values. The point is that, as a seller, if you don’t think about how affordability has changed for buyers who are relying on mortgages, you may be out of touch with the market value of your property.