Sunday, December 30, 2007

Negative News

The negative housing market was rated as the number one news topic by the Columbus Dispatch in 2007, but it's not as bad as the media has reported. Everyone seems to be getting on the negative bandwagon. Here are two good example that I thought was interesting:

'Here's a typical example from USA Today, Oct. 26, 2007, page 1B:


"New Home Sales Unexpectedly Rise. New homes sales posted an unexpected increase in September. But analysts were highly skeptical given the credit crunch and predicted further sales declines. The Commerce Department said sales of new homes rose 4.8 percent last month..."


By the way, here's what they didn't report. Sales in the West were up 36.6 percent. The media totally discounted these statistics. What about a different headline: "Great News! Real Estate Sales Surge Despite Biggest Credit Crunch in Decades"?'

Here is another good example:

'In Sept. 6, 2007, article entitled, "New Mortgage Foreclosures Set Record," Martin Crutsinger provided the following summary of a speech given by Doug Duncan, the chief economist for the National Mortgage Bankers Association. Here's how it was reported:


"The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages. The Mortgage Bankers Association reported Thursday that mortgage-holders starting the foreclosure process in the April-June quarter reached 0.65 percent, marking the third consecutive quarter that this figure has set an all-time high."
"The delinquency rate has risen to 5.12 percent...The worsening performance was driven by two factors -- heavy losses in the Midwest states of Ohio, Michigan and Indiana, and the collapse of previously booming housing markets in California, Florida, Nevada and Arizona...Analysts said the problems in the formerly red-hot housing markets of California, Florida, Nevada and Arizona reflected in part speculators walking away from mortgages they can no longer afford."


This article ends with the negative media's favorite theme for scaring their readers and/or listeners: "Two million people will face foreclosure in the next two years."


Here are the numbers that the negative media did NOT report from Duncan's speech:


Thirty-five percent of the homes in the U.S. do NOT have a mortgage.
Some 94.88 percent of the loans ARE performing.
The foreclosure problem in this country is really a story about seven states.
The biggest foreclosure problems are in Michigan, Ohio and Indiana. These are manufacturing states that had horrible job losses. Since 2001, Michigan has lost 300,000 jobs. These states would probably have had problems no matter what the market was doing.
The other four states -- California, Florida, Nevada and Arizona -- experienced significant overbuilding. Twenty five percent of the foreclosures in these states are on properties that are held by investors who were speculating.
Only 25 percent of all mortgages are subprime, and of these, 75 percent are performing.
In the other 43 states, foreclosures have fallen in 2007 from 2006 (data from Michael Clawson, vice president, Central Texas Mortgage).'

http://www.columbusrealtors.com/16240.cfm

Tuesday, December 18, 2007

FHA reform

Last Friday, December 14th, the Senate passed a bill that would modernize FHA mortgages. This bill increases the maximum amount of an FHA loan from $362,790 to $417,000 in the lower 48 states. This greatly helps people in places with a high cost of housing where people applying for a loan might not qualify for a conventional loan because of their credit score. This bill also reduces the required down payment from 3% to 1.5%. The House passed a similar bill in September that eliminated the down payment requirement. The bill will now go to a conference committee in order to form a compromise bill. Then, a final bill will go to White House.

Tuesday, December 11, 2007

Remodeling Magazine's payback report

Based on national averages, a study from Remodeling Magazine found that exterior upgrades tend to have a greater return on the investment than interior upgrades. According to the study, the highest percentage of costs were recouped from upscale siding replacement (88%), a wood deck addition (85%), wood window replacement (81%), and a minor kitchen remodel (83%). Some of the projects that received the lowest returns are home office remodels (57%), installing a back-up generator (58%), and adding a mid-range sunroom (59%). The value of the renovations dropped since the 2006 survey because of rising remodeling costs and a slower housing market.

http://www.realtor.org/rmomag.NSF/pages/2007CostvsValue?OpenDocument

Wednesday, December 5, 2007

Gabriel's Realtor luncheon

We had a luncheon for all of the Coldwell Banker agents in Columbus to visit our Gabriel's Landing condos yesterday. It turned out to be a great success! I am very thankful that so many Realtors came out and gave us such positive feedback. I also thank God that the snowstorm waited until today so that it was a much easier drive for everyone.

Sunday, December 2, 2007

Top 7 New Home Buying Mistakes

I found this article useful for buyers who are considering a new home. It includes the top 7 new home buyer mistakes which are:

1. Choosing upgrades with the lowest ROI or too many upgrades, period.
2. Not examining your lot choice thoroughly enough.
3. Finding communities first, vitals second.
4. Overlooking the "inspection" clause in builder contracts.
5. Not using a buyer agent.
6. Using the builder endorsed financing company out of convenience.
7. Believing everything you read in advertisements.

Here is the article for further details:
http://www.brokeragentnews.com/news/residential/2007_11/11_26_2007_ve_1196132443.html

Tuesday, November 27, 2007

NAR survey shows Americans believe buying a home is still a good financial decision

Americans remain convinced that buying a home is a good long-term investment. Here are a few of my favorite points from the article:


The survey measures how affordable housing issues affect consumers. This year’s results show that nearly nine out of 10 consumers believe that buying a home is a good financial decision. Fifty-nine percent of respondents also agree that now is a good time to buy a home; that number is even higher (64 percent) in areas of recent home price declines.


This year’s survey shows that Americans are more concerned about obtaining a mortgage and having enough money for down payment and closing costs than they have been in five years of polling. Nearly six in 10 respondents believe it’s difficult for people in their area to obtain a fair and affordable mortgage. More than eight in 10 say having enough money for down payment and closing costs are obstacles for home buyers in their area, up 17 percent from 2005. Sixty-three percent also think the mortgage approval process is an obstacle, up 13 percent since 2005.
“Buyers in the conventional market can still obtain mortgages at very favorable rates,” said Combs. “In addition, NAR is advocating for FHA modernization; changes to this program will help many more first-time buyers become homeowners.”


http://www.realtor.org/press_room/news_releases/2007/nar_survey_shows_americans_believe.html

Monday, November 26, 2007

Buying a home isn't stupid!

Here are a few of my favorite points from this article:

From the Housing Bubble to the Mortgage Meltdown, the press has been relentless, even though most people have lost more money on their SUV's and their stock portfolio than their homes this year.

Even though national housing prices are likely to dip around two percent this year, 2007 will still be the 5th best housing year on record. (actually, the third best year ever in Columbus!)

Most foreclosures and delinquencies are concentrated in the subprime market, and those who qualify for conventional financing are still seeing extremely favorable interest rates.

The East and West Coast typically flex higher and lower than the middle of the country, so it's not surprising that when the housing boom started back in 2002, prices skyrocketed in California and Florida, while going flat in other places.

http://realtytimes.com/rtapages/20071120_buyinghome.htm

Monday, November 19, 2007

Long-term investment

In the article, "Real Estate Continues to be THE Best Long-Term Investment," Peter L. Mosca from California discusses the recent downturn in the housing market compared to the boom from 2003 to 2005. He says that the appreciation rates during those years were unsustainable, leading to the slowdown in the California market. However, despite this slowdown, he argues that real estate continues to be the best long-term investment. Here are several good points he makes:

"Homeownership as a long-term investment has a track record that is virtually unmatched by any other purchase in terms of its real benefits, Brian Catalde, president of the National Association of Home Builders (NAHB) and a homebuilder from El Segundo (CA). "Homeowners today have a combined $11 trillion in equity in their homes, against which they can borrow to help pay for college tuition, medical expenses and other needs. And housing offers important tax incentives to make owning a home more affordable."

"To argue that home values will continue to decline and never recover, somebody has to make a convincing case that it will cost less to build a new home five years from now than it does today -- and that's just not going to happen," said Catalde. "Despite today's housing slowdown, the cost of land, labor and materials required to build new homes continues to go up."

Click here for the full story:

https://realtytimes.com/rtcpages/20071112_longterminvest.htm

Thursday, November 15, 2007

New Listing!


I am pleased to announce my new listing! It is 1825D Northwest Ct, a desirable end unit condo in Windgate Village. It is absolutely beautiful inside with fresh paint and refinished hardwood floors. It has two bedrooms, one bathroom, and a basement. I am holding an open house there this Sunday from 2:00 to 4:00 if you'd like to check it out! For more information, look at the website below:

Saturday, November 10, 2007

Most Affordable Places to Live Well

I noticed this article from Forbes that names Columbus as the ninth most affordable place to live well out of the 50 largest cities in the US. It calculated housing affordability according to the National Association of Home Builders and the Wells Fargo Housing Opportunity Index. Seventy-six percent of homes sold last quarter were available to the median-income earner. Then, it took into consideration the cost of living index developed by the Council on Community and Economic Research. Columbus has a cost of living slightly below the national average. Lastly, it used data from Sperling's Best Places to take into consideration opportunities for arts and leisure. Columbus has many different venues for music and sports, plus many parks and recreation centers.

http://www.forbes.com/2007/11/05/homes-property-affordable-forbeslife-cx_mw_1106realestate.html

Monday, October 29, 2007

Columbus housing market statistics

The Columbus Board of Realtors has published an article with some of the statistics of the Columbus housing market and how it compares to the national statistics. Although home sales are down this year, the Columbus market is still very healthy and doing much better than the national average. Look at this link for the full story:

http://www.columbusrealtors.com/16206.cfm

Friday, October 26, 2007

Great Opportunity!

I have some very exciting news! Coldwell Banker has partnered with Portrait Homes to sell several of their condo communities in Columbus. I have been invited to sell their condos in Galloway called Gabriel's Landing. They are 2-3 bedroom townhomes with garages, lofts, and open floorplans. They are absolutely amazing inside and a great opportunity for first-time homebuyers. I am very excited to start selling them! Check out their website below:

http://www.pasquinelli.com/Columbus/GabrielsLanding.aspx

Tuesday, October 23, 2007

Open House

I'd like to invite you to my open house. It'll be this Sunday from 2:00 to 4:00 at 3319 Shattuck Avenue. I included a link with more details, pictures, and a map:

http://homes.realtor.com/search/listingdetail.aspx?zp=43221&mnp=20&mxp=19&bd=4&bth=4&typ=7&sid=ec38e2d377904f8bb89abd09bf48ffbd&lid=1090497183&lsn=5&srcnt=9#Detail

Tuesday, October 16, 2007

The Top Ten Reasons It's a Great Time To Buy Real Estate!

I found this article that I thought would be very helpful for you:


The Top Ten Reasons It's a Great Time To Buy Real Estate!
by Paul Pastore



1. Selection, selection, selection. There are about 57,000 resale homes on the market in Maricopa county(Phoenix). Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 5,000 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.

2. No Bidding Wars. In 2005 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.

3. You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.

4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.

5. Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.

6. There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. R.L. Brown estimates that builders have thousands of specs ready for immediate occupancy.

7. Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.

8. Few, if any investors. It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.

9. Location, location, location. Today's buyers can find homes closer to work. In the past buyers flocked to Maricopa and Queen Creek in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.

10. Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!

Monday, October 15, 2007

rent vs buy calculator

If you are currently debating whether you should rent or buy a home, there is a good calculator from Yahoo Finance that can help you do the math to determine which is the better decision for you financially. It helps you to see the entire financial picture of renting or owning a home including some aspects that you may not have thought of, like inflation and taxes.

http://finance.yahoo.com/calculator/real-estate/hom-06

Thursday, October 11, 2007

Raising your credit score

Have you ever wondered how your credit score is calculated or how you can raise your credit score? It's like getting into shape, there is no quick fix to raise your score, but with time it will improve. First, make sure that there aren't any mistakes on your credit report. If there are, report them to the lender or credit reporting agency to have them corrected. Probably the best way to raise your score is to understand how it is calculated. Here is how your score is broken down:

35% payment history: Pay your bills on time!

30% amounts owed: It is best to have more credit than you need. Ideally, you should use less than 30% of your maximum credit limit.

15% length of credit history: Keep the same credit card for many years instead of opening new accounts.

10% new credit: When you apply for a loan or credit card, the inquiry shows up on your credit report. A lot of new accounts can look bad.

10% types of credit in use: It is better to have a mortgage than credit card debt.

Tuesday, October 9, 2007

credit report

Last night, I was teaching a first-time home buyer class and one of the students asked me a question about credit. When he applied for a loan, he found out that he was the victim of identity theft and that there were several companies on his credit report that he had never done business with. You have the right to know what is on your credit report and may want to check it a few months before you start looking for a house to make sure that there isn't any fraudulent activity that can lower your credit score so that you can clear up those blemishes before you apply for a loan. You can go to www.annualcreditreport.com and request a free credit report from all three credit reporting companies each year. You can either ask for all three reports at once or space them out over the year. The website even tells you how you can put a "fraud alert" on your credit report if you believe you were the victim of identity theft and requires creditors to verify your identity before extending credit in your name.

Friday, October 5, 2007

Columbus is a stable market

According to this article from Yahoo Finance, the median home sale price in Columbus is expected to increase during the next year because of lower than average inventory levels, little price volatility, and high job growth. This makes it the third most stable market in the U.S. compared to 40 of the biggest cities. Columbus didn't experience the housing boom during the past few years and now it isn't experiencing the bust. In this article, Moody's predicts that Columbus will have price appreciation of 3.49% in 2008! It's a great time to buy in Columbus!

http://finance.yahoo.com/real-estate/article/103630/America's-Most-Stable-Housing-Markets

Wednesday, October 3, 2007

Referrals

In the real estate profession, much of my business comes from referrals. The absolute finest compliment I can receive is a referral from my family, friends, past clients, future clients, and even loyal blog readers. Please keep me in mind the next time you hear of someone who is thinking about making a move! Also, if there is any way I can support you in return, please let me know!

Friday, September 28, 2007

Open House

This Sunday from 2:00 to 4:00 I am going to be holding an open house that I would like to invite you to. The address is 1040 Afton Road. Look at the link below for more information. I hope to see you there!


http://www.kingthompson.com/property/propertydetail.aspx?property=180e45e0-ddb7-4830-80fc-b4fd448cf1a5

Tuesday, September 25, 2007

FHA reform

The Senate Banking Committee passed legislation last week to reform the restrictions on FHA loans, making it even easier for home buyers to get an FHA loan instead of a riskier alternative. This would increase maximum loan amounts, which helps buyers who are looking in high-cost locations, but may have credit issues that prevent them from getting a conventional loan. The National Association of Realtors has been encouraging Congress to modernize FHA by increasing loan amounts and reducing or eliminating the required 3% down payment. We are now waiting for the House and the Senate to finalize this legislation and are hopeful that it will go into effect by the end of the year.

Wednesday, September 19, 2007

Fed Rate Cut

The Federal Reserve did something a little unexpected yesterday and cut interest rates by half a percentage point. A big problem in many markets was that houses just weren't affordable for the average person. Now, not only have the price of houses come down in many markets, but the payments are also more affordable because of the lower interest rates. This should make a big impact in helping people achieve their goals of home ownership. So, if you've been thinking about buying a home for a while, get out there and take advantage of the great prices and interest rates!

Monday, September 17, 2007

Lenders

The lenders have made mistakes. Some did not disclose to borrowers the full amount of a loan payment once the adjustable rate increased. Others did not verify the income or assets that borrowers stated that they had. This has caused borrowers to default on their loans and it's never a good thing to lose your house. However, the percentage may not be as big as what the media suggests. In an article by Ben Stein in The New York Times, he states, "The percentage of those who have defaulted is still fairly small, possibly 10 percent to 15 percent of subprime loans, and maybe less. (And subprime mortgages are very roughly 10 percent to 15 percent of mortgages.)" That means that there were a lot of less-qualified borrowers who are able to achieve their dream of home ownership because of subprime loans.

Friday, September 14, 2007

Mortgage Lending Implosion

Can you believe that 156 lenders have gone out of business since late 2006? They were funding risky loans that homeowners just couldn't afford to pay back. This emphasizes why you need to work with a reputable lender if you are thinking about buying a home. Make sure you speak with lenders who have been in business for a long time and who your Realtor recommends. All lenders offer very similar rates, so if you are quoted something that seems to be too good to be true, it probably is. To see a watch list where you can see which lenders are at risk of going out of business go to www.ml-implode.com.

Monday, September 10, 2007

first-time homebuyer class

This weekend I went to the first-time homebuyer class at Homes on the Hill (the one I mentioned in my last blog) and it was excellent to see how excited the students were about buying a home. They asked so many good questions and it was amazing. I think that's one of the reasons that I like working with first-time homebuyers so much. I really enjoy helping them through the process, teaching them what to expect along the way. In fact, I think that the real estate market in general changes so often that much of what I do is teaching and coaching my clients.

Thursday, September 6, 2007

Volunteering

Lately I've been thinking about ways that I can volunteer my time to help the community and also use some of my real estate expertise. I came up with the idea to volunteer at Homes on the Hill. They assist low to moderate income English and Spanish-speaking families achieve the dream of home ownership. They offer free first-time home buyer classes where they explain the entire process from start to finish by inviting the people who are involved, like lenders, inspectors, and Realtors to speak about what they do. So, I am going to be teaching there and I'm pretty excited about it!

Tuesday, August 28, 2007

Communication

One of the biggest complaints that people have with their Realtor is the lack of communication. Whether you are buying or selling, it is very important to set the communication expectations when you first start to work with the Realtor. Make sure that he/she lets you know when new houses come on the market or when houses sell. Also, you'll want to know when you'll be able to see houses you are interested in, or know the feedback that your Realtor receives after someone looks at your house. It is important that you make an informed decision when buying or selling a house and you'll want to be informed the each step of the way!

Thursday, August 23, 2007

Media

I am sure you have heard plenty of negative media coverage about the housing market. Did you know that this year is actually the third best year EVER in real estate based on the number of sales? It's absolutely a fantastic time to buy a house because there are plenty of houses on the market to choose from plus interest rates are near the lowest they've been in the past 30 years!

Tuesday, August 21, 2007

Listings online

Since you're reading my blog, I assume you are very internet-savvy. The internet is becoming a bigger part of selling real estate every day. Already, more than 80% of buyers look for real estate listings online and it's great! You can see all the details about a house (like the number of bedrooms, square footage, etc. that you wouldn't be able to see from the curb). Most houses even have several interior pictures so you can determine if you like the interior style. This saves buyers a lot of wasted time going into houses that won't meet their needs.

However, there are some things that you just can't determine from the internet. You need to decide if you like the location and would feel comfortable living in that neighborhood. Drive around first and see what the neighborhood is like and what amenities surround the neighborhood. Pictures can be deceiving and can easily cut undesirable features out of the frame.

Thursday, August 16, 2007

Open House

How do you find out if that house you've had your eye on is going to have an open house? Unfortunately there is not one magic source that can tell you about every open house. You can look in the newspaper classifieds. Also, look at a variety of websites for agents and local real estate brokerages. OpenHouse.com offers a list of open house dates and times. Probably the most common way for people to find open houses is to look for signs as you're driving around. Sometimes you'll see it advertised a few days before the open house on the yard sign. Otherwise, look for directional signs leading you from the main road to the open house during the actual event. Most open houses are on Sunday afternoons, but it is becoming more common to find them on Thursday evenings or Saturday afternoons as well.

Monday, August 13, 2007

FHA

So, I'm sure you are well aware about the issues with sub-prime lenders by now. The media has done a great job repeating the stories over and over. What if your credit score isn't perfect or you don't have any money saved to make a down payment? You might want to ask your lender about an FHA loan. It's a government loan that might be a great deal for you. Even if you don't qualify for a conventional loan, you might still be able to get a loan and buy a home with FHA!

Thursday, August 9, 2007

Where to start?

So, you think you'd like to own a home someday? Where do you possibly start? Well, the first thing to do is to contact a lender, not just any lender off the internet, but a big, well-known, reputable one. The worst thing that can happen is that you're all packed and ready to move into your new home, only to find that your lender still doesn't have your loan ready and that they stopped returning your phone calls. Or worse, they went out of business!

The lender can tell you how the price tag on the house translates to monthly payments and how much they can lend you based on your income, assets, debts, and credit score.

Tuesday, August 7, 2007

Just had a closing!

I just had a closing for two of my first-time homebuyers! It always feels amazing to see how excited they are about their new house! From the time they decided this was the perfect house for them, throughout the in-contract period, and after the closing, they kept bubbling about all of the fun things they were going to do in their new house. They even took a picture of themselves with the "just sold" sign in the front yard! They're so excited to start on home improvement projects and make this house their home. It's great when people have such big dreams that become realities!

Thursday, August 2, 2007

Nice to meet you!

Hello and welcome to my blog site! I appreciate that you are taking the time to read my postings. I am a Realtor with Coldwell Banker King Thompson in Columbus, Ohio, working mostly in the Northwest. I specialize in helping first-time homebuyers achieve their goals of homeownership. I have been in your position, where you'd like to buy a home, but aren't sure where or when to start. I know you have questions and love teaching people as I work, so that's why I think that first-time homebuyers are perfect to work with. I would like this to be a conversational blog, so if you ever have any questions or comments, feel free to post them!