Wednesday, November 18, 2009

Columbus is the Number 10 Most-Livable Bargain Market

2009 MSN Real Estate Most-Livable Bargain Markets
By Melinda Fulmer of MSN Real Estate


In tough economic times, there’s nothing more attractive than a steady paycheck and an affordable mortgage payment. However, finding a place to live that’s both a bargain and enjoyable can be tough.


So MSN Real Estate asked Bert Sperling of Sperling’s Best Places to evaluate the most affordable housing markets from the 100 largest U.S. metro areas and pinpoint 10 of the most livable areas: places where unemployment is low, commute times are mercifully short and there are enough interesting entertainment and cultural amenities to keep most people busy and satisfied. We defined affordability by the ratio of median income to median home price. The result? MSN Real Estate’s most-livable bargain markets list.


“These places have a great quality of life even though they are affordable,” Sperling says. “And they haven’t suffered a free fall in the marketplace like some other places have.”


You won’t find New York, Los Angeles or Miami on this list. Instead, you’ll find a nice collection of cities spanning the country that range in population from the merely midsize — such as Ogden, Utah, at 513,280 — to the mega metroplex of Houston, with its 5.7 million residents. And all of them offer people more home for their money and, hopefully, more money in their pockets.


On the following slides, find out what makes each of these 10 cities great and the drawbacks you might find if you move there from another area: Hint: For many of these places, be prepared to pack a heavy winter coat.

http://realestate.msn.com/slideshow.aspx?cp-documentid=22334217&GT1=35000

Saturday, November 14, 2009

More Details about the First Time Home Buyer Tax Credit Extension and Expansion

First Time Homebuyer Tax Credit Extended Into 2010! Plus...A New Tax Credit for Certain Existing Home Owners!

President Obama has signed a bill that extends the tax credit for first-time homebuyers into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What? The program that has existed for First Time Home Buyers remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

*******Deadlines In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase
Price Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions

Here are answers to some commonly asked questions about the tax credit.

What is a tax credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)? An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the First Time Home Buyer tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit? For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property? No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property? Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit? Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.


  • You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

  • You do not use the home as your principal residence.

  • You sell your home before the end of the year.

  • You are a nonresident alien.

  • You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)

  • Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)

  • You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.


Can you buy a home from a step-relative and be eligible for the credit? Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.


Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit? Yes.


Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years? No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

Friday, November 6, 2009

The Extended Home Buyer Tax Credit

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies for the Extended Credit?


First-time home buyers who purchase homes between November 6, 2009 and April 30, 2010.


Current home owners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.


To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.


Which Properties Are Eligible?


The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.


How Much Is Available?


The maximum allowable credit for first-time home buyers is $8,000.


The maximum allowable credit for current homeowners is $6,500.


How is a Buyer's Credit Amount Determined?


Each home buyer’s tax credit is determined by tow additional factors:


The price of the home.

The buyer's income.

PriceUnder the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer IncomeUnder the Extended Home Buyer Tax Credit, which is effective on November 6, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?


Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

The Extended Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

Tuesday, November 3, 2009

Just Sold!

I just sold the condo at 868 Village Brook Way. Welcome to the neighborhood, Mr. Bickel!


Monday, August 24, 2009

Another first-time homebuyer



Congratulations, Brian! Another first-time homebuyer found a fantastic deal and has an unbeatable interest rate! I wish I had a picture of the back yard. This condo has a large deck on the back overlooking a pond with a fountain. It's a beautiful view!

Friday, August 14, 2009

First-time homebuyers


Congratulations, Pat and Holly! They just closed on their first house in Devonshire in the north end of Columbus. I know they are excited to get started on home improvement projects and move in over the next few weeks.
If you are thinking about purchasing a home and are eligible for the first-time homebuyer tax credit keep in mind that you must close by the end of November. Lenders have been much more strict than they have been in the past and the process of getting a loan is taking longer. Since the average time to close on a loan is now 45 days I am recommending to all of my buyers that they are in contract on a home by the first of October in order to have enough time to close, just in case lending gets delayed.

Wednesday, July 29, 2009

Homebuyer Protection

Recent Federal legislation is having an impact on how long you should reasonably expect the process to take between the time you write an offer on a house and the closing date. Two pieces of legislation are now making the normal time in contract 30-45 days.

Home Valuation Code of Conduct:
  • Ensures that appraisals are done objectively without influence from parties involved in the transaction.
  • The appraisal and selection of the appraiser is done by someone not directly involved in the origination of the mortgage.
  • A copy of the appraisal must be given to the buyer/borrower at least 3 days before the closing.
  • Appraisals may take weeks, not days to complete.
  • Communication between the appraiser and the originating mortgage professional is prohibited. Agents involved in the transaction should be prepared at the time of inspection to offer supporting value information if warranted.

Housing and Economic Recovery Act:

  • Designed to ensure that the borrowers involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance.
  • At the initial time of application no fees may be collected except a fee to cover the cost of obtaining a credit report.
  • Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may close.
  • Items that can trigger re-disclosure requirements include changes in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.
  • In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.

Friday, July 17, 2009

Price reduced and open house


The sellers at 868 Village Brook Way have just reduced their price to $174,900. It is an absolutely amazing deal! To celebrate and show everybody how great it is, I will be holding it open this Sunday, July 19th from 2-4. I've blogged about how great this condo is in past posts, so I won't bore you with that, but to give you an update the condo just received a brand new roof and new exterior paint. Come see it and tell your friends. These sellers are very motivated!

Tuesday, July 14, 2009

Real Estate Agents Get Creative


When a couple decided to sell their $10 million home in Fort Meyers their agent had to get creative. She wrote a press release optimized for social media to reach buyers everywhere, not just in the Fort Meyers area. Her press release included a link to a webpage where buyers could print a $1 million coupon off the price of the house. She also embedded a YouTube video with a tour of the home, a link to a webpage dedicated to that home, and plenty of social media tools to share the story. She planned to contact reporters to spread the word, but discovered that the reporters already found her press release and were able to get all of the information they needed from the website without wasting anyone's time making phone calls. At the time this article was written there was no news about the home being sold, but she is way ahead of the competition!

Thursday, July 2, 2009

Catching up

Hi Readers,

Sorry it's been a little while since I've last written. Things have been busy lately! I've been helping two different first-time homebuyers. One is in contract on a home in Bethel Commons and the other chose a house in Devonshire. If you haven't owned a home in the last three years keep in mind that you need to close on a home before November 30th in order to qualify for the $8000 first-time homebuyer tax credit. Call me for more information. Have a happy 4th of July!




Friday, June 19, 2009

New Price!



40 W Deshler in the Brewery District has reduced their price to $264,900! It's a great deal in a fantastic neighborhood, Brewer's Gate. The location is amazing because you can walk to German Village and Brewery District shops, restaurants, and bars. It is easy to get on 71, 315, 670, and 70 to get around the city quickly. It is also right by the bike path to ride downtown, to OSU, or even all the way to Worthington! Enjoy Schiller Park, Lou Berliner Park, or the little park right across the street. It has a beautiful interior with 3 levels of living space that shows like a brand-new model home! It has plenty of windows to view the sunset, lots of storage space, and high-end finishes and appliances. The seller is highly motivated to move and ready to negotiate, so don't miss out on this deal!

Tuesday, June 9, 2009

How Buyers Find an Open House

More than 90 percent of potential home buyers plan to attend open houses as they look for a home to buy, according to a survey conducted for Trulia.com.


Here's how they find out about properties open to view:

  • 62 percent use online sites to find open houses.
  • 53 percent use information provided to them by real estate professionals.
  • 36 percent use neighborhood signs.
  • 31 percent use information in the newspaper or other printed source

"We used to see home buyers walk into open houses with a newspaper in their hands," says Aman Daro, vice president of Integrated Marketing at McGuire Real Estate in San Francisco.

"Now they walk in with printouts of their search on the Web."


Source: Trulia.com (05/28/2009)

Real Estate Brokers Shifting to Online Focus

Coldwell Banker is shifting its marketing strategies online where the buyers are looking, while also saving money and becoming more lean in these slower economic times.

Major real estate companies have cut back significantly on conventional advertising, turning instead to less-costly alternatives, including blogs and online video tours.

For instance, Realogy Corp., parent company of Century 21, Coldwell Banker, Sotheby's International, and Better Homes and Gardens Real Estate, spent 31.7 percent less on newspapers, outdoor and television in 2008, according to TNS Media Intelligence. Spending dropped to $129.3 million from $189.4 million in 2007. At the same time, it upped its Internet spending 29 percent to $8.6 million.

Newspapers in particular are the losers as the industry moves online. Christina Lowris, executive vice president of marketing and advertising at the Corcoran Group, says, "It is very antiquated to think that people are opening up the Sunday paper and looking for real estate. It just doesn't happen anymore."

Big winners include Google and YouTube, where the real estate advertising presence is growing daily.

Putting ads on YouTube is "game changing," says Michael Fischer, Coldwell Banker's senior vice president of marketing. "With video, we can really show a property off."

Tuesday, June 2, 2009

Existing Home Sales increase in April

The number of U.S. home buyers who purchased a previously owned home in April was the largest monthly jump in eight years. The National Association of Realtors announced its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3, far exceeding analysts' forecasts. It was the biggest monthly jump since October 2001, when pending sales rose 9.2 percent.

Could the market be turning around? Interest rates are creeping up, also a sign that the market may be improving. If you are thinking about buying a home, don't miss out on the low rates!

Half Million First-Time Home Buyers

Almost a half million (455,000) first-time homebuyers purchased during just the first quarter of 2009 according to the National Association of Realtors. They took advantage of the tax credit, low interest rates, and low prices.

Monday, June 1, 2009

Tax Credit Guidance for FHA Loans Announced by HUD

In his speech at the National Association of REALTORS® Housing Summit on May 12, 2009, US Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced a program that allows borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on a FHA-insured mortgage. The Secretary said “We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit.”

The details of the program were announced today in Mortgagee Letter 2009-15. A government entity and instrumentalities of government may provide a second mortgage. Currently, 10 state housing finance agencies offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. These states are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee. State Associations are encouraged to work with their respective housing finance agency to implement similar programs. The 3.5 percent down payment may also be a gift from a family member, employer or nonprofit, charitable organization.

The original guidance permitted lenders and HUD-approved nonprofits and lenders to offer bridge loans via second lien financing or short term loans. Guidance released today allows lenders to offer the monetized tax credit for down payments in excess of 3.5 percent, closing costs and interest rate buy downs. Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers. Lenders will need some time to develop documentation for what will effectively be personal loans to the home buyer.

http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2009_MORTGAGEE_LETTERS/09-ML-15%20USING%20FIRST-TIME%20HOMEBUYER%20TAX%20CREDITS.PDF

Wednesday, May 20, 2009

The Truth About the Housing Market

Coldwell Banker's Market Watch

In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers:

Myth #1: The longer the house is on the market, the more you can negotiate.

When buyers ask, “How long has this property been on the market?” they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.

Myth #2: Sellers today are desperate.

Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. (I’m being transferred to Dallas) is a very different answer than (We’d like to find something bigger.) The first homeowner is hot to trot.

Myth #3: You can't buy a home today with less than 20% down.

FHA loans require only 3.5% down, and you can even ask the seller to pay the closing costs.

Myth #4: You need good credit to get a good loan.

Once again, the FHA to the rescue! They often lend money to buyers with less than perfect credit.

Myth #5: You shouldn't buy before prices have bottomed.

You can’t sharp shoot the real estate market. Once you identify the “bottom,” prices have already moved up.

Obama's Foreclosure Alternatives Program

Obama Administration Announces Financial Incentives and Uniform Process for Short Sales

Responding to the call of the National Association of REALTORS®, on May 14, 2009, the Obama Administration announced incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP). For borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program, the servicer may consider a short sale or, if that is not successful, a deed-in-lieu of foreclosure.

Borrowers (Homeowners). Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

Incentives. Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).
Standardized Documents. The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

Property Valuation by Appraisal or BPO. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.

Timeline. In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.

Commissions. The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.

No Borrower Fees. Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

Program Expiration. The program is in effect through 2012.

Deed-In-Lieu Option. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).

Tuesday, May 12, 2009

Tax Credit Can Be Used As A Down Payment

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development announced today that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment! Previously, buyers had to provide a minimum of 3.5% of the purchase price of the home as a down payment, then wait to file an amended tax return before receiving their tax credit. FHA will provide a bridge loan to buyers to be paid off once they receive their credit.

See Daily Real Estate News for the full article.

Pending Home Sales are Up

Last week the National Association of Realtors announced that the number of pending sales on existing houses has been up during the last two months. The seasonally adjusted index of pending sales was up 3.2%, 1.1% above last year's rate and beating analysts' flat expectations.

"This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions," and the tax credit, Lawrence Yun, the Realtors' chief economist, said in a statement. "We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around."

It appears that first-time homebuyers are taking advantage of the lower home prices and low interest rates!

For the full article please see MSNBC.

Tuesday, April 28, 2009

Buying an Existing Home with a Buyer's Agent

Going along with my last post, I've heard of some buyers who don't understand the value of using a buyer's agent. In this case, as opposed to new builds, there are much fewer buyers who try to buy without an agent because it's a lot more work for the buyer. These days all of the homes for sale are online, so buyers have access to information and pictures. The biggest drawback there is that there aren't any websites that allow you to narrow your search as specifically as a Realtor can using the MLS. Having an agent send you all (and only) the houses that meet what you are looking for saves you a lot of time. Second, when you work with one agent the agent gets to know you and your likes and dislikes as you go through several homes. They may be able to recommend a home style or location that you hadn't thought of, but is a great fit.

The biggest savings a Realtor can offer is in the amount of time you will need to research. You need a purchase contract plus all of the other legal documents required to purchase the home. If you don't have a Realtor you'll need a lawyer to make sure you have all of the documents and have them filled out correctly. Then, you'll have to research and select lenders, home warranty service providers, inspectors, contractors and maybe others. All Realtors have people in all of these categories that they recommend to make sure you get the best deal and the best service.

Just like with the new builds, the number one reason that some buyers don't use Realtors is because they think they can keep the 3% that the buyer's agent would receive. Again, this isn't the case. For example, the seller signs a contract with their listing agent saying that upon closing the listing agent will receive a 7% commission. When there is a buyer's agent that agent will receive 3% of the 7%. When there isn't a buyer's agent the contract still states that the seller's agent will receive a 7% commission. So, the seller doesn't keep it and the buyer doesn't get it in the form of a lower price.

Therefore, why would you create so much more work for yourself when you're not saving any money?

Buying a New Build with an Agent

I've heard questions over and over again about whether you need a buyer's agent to purchase a new build and whether it's beneficial for the buyer. I can't believe I haven't written about this topic yet! I've been the builder's representative for three different builders and have been a buyer's agent for another builder so I have a pretty broad overview on the way builders operate.
A builder needs to keep in mind the value of the other homes in the neighborhood when they are designing their incentive programs. In many cases they cannot lower the price of a home without reducing the value of the other homes in the neighborhood or the value of their future sales. For example, if they sell one home for $185,000 they cannot ask $195,000 for the exact same home in a buyer's market like this. Buyers won't pay more for the exact same house.

For this reason, builders often offer incentives, like paid closing costs, flooring upgrades, or free appliances instead of reducing the price.

Also, the lending rules limit the amount of money that sellers (or builders) can give buyers. On a conventional loan the limit is 3% of the sales price while on an FHA loan the limit is 6% of the sales price. So, if the seller is already giving the buyer the maximum amount in the form of closing costs or discount points they cannot give any more money back and looking at the last example, they cannot lower the price any more.

Builders heavily rely on Realtors to sell their homes, so they plan to offer Realtors a commission. Some buyers have the misconception that if they do not have a Realtor they can keep the 3% commission that the agent would have received, but as you can see it's just not possible.

Here's an example with a Realtor. A builder is asking $200,000 for a home. They offer upgraded appliances, a $5000 value, and pay closing costs and points, a $6000 value. They pay the buyer's broker $6000. This particular builder is willing to negotiate on the price (not all are) and they and the buyer agree on a purchase price of $195,000. This leaves the builder with a net of $178,000. The builder is happy because the property value is $195,000 and the buyer is happy because they receive $11,000 in incentives.

A different buyer comes in the model home without a Realtor, interested in the same house. The price is still $200,000. The buyer sees the sign advertising the upgraded appliance package ($5000) and paid closing costs and points ($6000). The builder's representative starts writing up the contract "assuming" a full-price offer. The buyer doesn't know that the last purchaser paid $195,000 and the builder's representative doesn't tell them because they have the builder's best interests in mind. Also, they can't receive the money that would normally go to the buyer's agent because they are already at the 3% allowable contribution limit. So, in this case the builder nets $189,000.

So, what value do Realtors provide? Going back to the first example about the purchase price, you don't want to pay more for your house than your neighbor paid for the exact same home. The Realtors have access to information about recently sold properties in the MLS that the public cannot access. The county auditor sites are public so you can see the sales price, but not the options and upgrades included in those homes.

Realtors also have experience with builders to know how builders work, what questions to ask, and what is negotiable. It depends on the builder, but I have seen buyers with Realtors get better deals than those without because of the Realtor's negotiation skills. Also, sometimes buyers "fall in love" with a home and want it so badly they forget to ask about other development in the area. There could be plans to build a "big box" store with its loading docks facing your backyard where trucks with beeping backup alerts load and unload all night. A Realtor takes the emotion out of it and thinks and negotiates with their mind instead of their heart. A Realtor also knows how builders work to know what is negotiable and what just isn't possible with the construction or because of lender's rules.

Friday, April 24, 2009

Columbus metro parks levy

The May 5th ballot will contain a levy for the Columbus Metro Parks. Although this topic isn't directly related to first-time homebuyers I still think it's important to mention because it makes Columbus a better place to live. I think it's a great and inexpensive way for people to get outside and enjoy nature. The 0.75 mill levy will continue operation of the existing parks and will help acquire land for three new parks:
  • Along Rocky Fork Creek in NE Franklin County
  • Along Little Walnut Creek new Canal Winchester and Groveport
  • Along the Scioto River in southern Franklin County, near Grove City

I support our parks and I hope that you will too!

Thursday, April 23, 2009

New listing!



I just got a new listing at 868 Village Brook Way! This clean and bright condo has brand new carpet and neutral paint throughout. It has an open and versatile floor plan. The great room features a gas fireplace surrounded by windows. It is open to the dining room with glass doors to the fenced patio with a decorative trellis to provide shade on a sunny day. The kitchen is open to both the dining and great rooms to easily entertain guests. It includes all of the appliances including an over-the-range microwave and plenty of cabinet and counter space. The kitchen has a door to the first-floor utility room including the washer, dryer and storage cabinets. From there you can go into the attached two-car garage with attic storage and pull-down stairs. The first-floor master bedroom has an attached full bathroom and a huge walk-in closet. The second bedroom or den also has an attached full bathroom and large closet. Upstairs, the third loft bedroom has its own half bath plus another large walk-in closet. With all this storage space you won’t miss having to walk down to a basement for storage and laundry facilities!

The condo is located within a mile of Antrim Park and the Olentangy Trail to take a walk, play with your dog, or just enjoy the great outdoors. You’ll have easy access to route 315 and Bethel Road for all of your shopping and dining needs, but the home is so quiet and private you’ll would never realize how close you are from inside the neighborhood.

The best part of this condo is the homeowner’s association! They planned and budgeted for new roofs, but because of storm damage, the complex is getting all new roofs in spring 2009 for the price of the insurance deductible! This leaves a huge budget surplus and a very financially sound condo association. All exterior wood trim will also be repainted in 2009. The neighbors do their part to keep the condo fees low too. There are committees of volunteers who maintain the pool and front entrance flowers. Plenty of social committees organize card games, potlucks, and other events. Everyone does their part to keep the neighborhood looking clean and well-maintained!

The sellers are very motivated to sell this condo right away! They are offering to pay the first six months of condo fees plus a $1000 bonus to the buyer’s agent. Bring an offer and they are willing to negotiate!

Tuesday, April 21, 2009

Riskiest places to buy a home

Forbes Magazine and Moody's Economy.com surveyed the 200 largest metropolitan areas, adding up the number of loans to low-rated borrowers and dividing that sum by the total number of mortgages. Here are the 10 metro areas with the highest percentages of non-prime mortgages, which makes them susceptible to defaults as unemployment rates continue to rise:

  • Mission, Texas

  • Detroit, Mich.

  • Miami, Fla.

  • Brownsville, Texas

  • Merced, Calif.

  • Lakeland, Fla.

  • Bakersfield, Calif.

  • Fort Lauderdale, Fla.

  • San Bernardino, Calif.

  • Visalia, Calif.

Home Showings

Coldwell Banker had a huge spike in the number of home showings last week. In fact, there were more showings last week than in any other week during the last year! Maybe it was the nice weather, maybe the low interest rates or first-time homebuyer credit, or maybe the economy is improving and consumers are becoming more confident. Whatever it is, it's working!

Tuesday, April 7, 2009

New Earnest Money Policy

The change to Ohio law regarding earnest money took affect yesterday. There used to be a problem deciding what to do with earnest money when the contract fell apart and the buyer and seller couldn't agree about who should get the money.

Normally when the contingencies in the contract are not satisfied or if the seller fails or refuses to perform the buyer would receive the earnest money back. Likewise, if the buyer fails or refuses to perform the seller would receive the earnest money.

Previously, when the parties disagreed, but didn't settle the dispute in court the money would remain in the broker's account indefinitely. Now, if after two years the dispute is not settled the earnest money is automatically returned to the buyer without notice to the seller.

Also, previously the buyer would receive their earnest money back at closing in the form of a check that they could apply to the down payment and closing costs or could keep. Now, the earnest money is automatically applied toward the purchase.

Friday, April 3, 2009

Selling a home? Here are some tips...

The Washington Post had a good article called "4 Tips to Make a Home More Inviting." They interviewed Phyllis Ryan, president of the model-home division of Interior Concepts, a Maryland design firm that specializes in furnishing new homes. Here are some tips that home builders use in their models and you can use when selling a home:

  • A stylish kitchen appeals to many buyers. If a seller has upgraded cabinets and granite countertops, that's good. If they don't, it may help to display some stylish touches like an espresso machine, a retro toaster or just some luscious fruit.
  • Lots of light makes spaces feel larger. Turn on all the lights even during the day and add a few extra lights if necessary.
  • The master bedroom should seduce a buyer. Play soft jazz, pile the bed high with a cushy comforter and pillows. Stack plush towels in the bathroom.
  • Add drama to a bottleneck or a dead end space. Prop an oversize mirror against the wall. It visually opens a space and adds drama.

Tuesday, March 31, 2009

OHFA update

The Ohio Housing Finance Agency announced its new homebuyer tax advantage credit program. Eligible borrowers will receive a second loan for 3% of the purchase price and can use this money toward the down payment or closing costs. The buyers would not be required to start repaying the second mortgage until August 1, 2010. Once they receive their $8000 tax credit they may use this money to repay the mortgage if they would like and there are incentives to repay it before June 30, 2010. The second mortgage would have an interest rate 1% higher than the first.

For more information please check the OHFA Homebuyer Tax Credit Advantage Program Website.

Tuesday, March 10, 2009

Just sold!


I just sold this house at 2591 Snowtip Lane. It is a new home built by Dominion. If you are interested in a newer home or in an area where there are a lot of new homes, I would recommend contacting a builder. Dominion offers great prices plus gives buyers 6% of the purchase price to use toward closing costs and to lower their interest rate. With these points my buyer was able to get a 30 year fixed rate loan at a 4% interest rate! You can't beat that. Congratulations, Mark! I hope you enjoy your home for many years to come!

tax credit fraud

Are you filing your taxes now? If you are eligible for the $8000 tax credit make sure you actually closed on your home before claiming it on your taxes! There have been cases where people have received their refund before even owning the home. Don't do it! This is fraudulent and you will be penalized by the IRS.

Remember that you can file an amended return. Even if you don't close on your home until the summer, file an amended return then to receive your refund.

http://www.marketwatch.com/news/story/pros-cons-first-time-home-buyer/story.aspx?guid=%7B7E50636F%2D66E3%2D47EC%2D84B5%2D33580F0E96F7%7D&siteid=nwhfriend

FHA for condos

If you have been thinking about or have already purchased a condo you may know that sometimes it can be more difficult to obtain financing on a condo. Often lenders require larger down payments if a condo complex is non-conforming (usually this means that more than 20% of the condos in the complex are rentals).

Also, if you are thinking about getting an FHA loan you need to make sure that the complex is FHA approved. You can do a search at www.hud.gov to find out. Even if the condo you have your eye on isn't on the list, there is still a chance you can get an FHA loan. If the complex has more than 4 units the lender may be able to do a "spot approval" on your unit. Each lender is different and these rules are constantly changing, so please talk to your lender for more details about particular complexes you are thinking about before getting your heart set on the perfect home.

My Award!

Coldwell Banker had their annual awards program this morning. I didn't think that I qualified for any of the awards this year, but I thought it would be fun to go and support my fellow agents. Well, I got a big surprise! I am the Top Listing Agent in the Upper Arlington office for 2008! Wow, I am honored! I'd like to thank everyone who made this possible...Mom, Dad, Tod, Coldwell Banker, and of course my clients! haha. Thanks! :-D

Thursday, March 5, 2009

OHFA loan update

The Ohio Housing Finance Agency has lowered their rates. They offer 30 year fixed rate conventional and FHA loans with a 3.5% down payment and VA loans with 0 down. They offer job loss protection at no additional cost. They require a home buyer counseling class, which has gotten great reviews by some of my buyers.

The rates are now 5.625% or 6.125% with assistance of 2.5% of the purchase price to go to closing costs or the down payment. This is the lowest down payment available now.

There are some limits. For households of 1 or 2 people the maximum income is $65,300 and for 3 or more people the limit is $75,095. Also, the purchase price has to be under $276,750 for a single family residence. Ask your lender for more information.

Tuesday, March 3, 2009

loan limits

The first-time homebuyer tax credit was one of the many aspects of the American Recovery and Reinvestment Act of 2009. It also reinstates the 2008 loan limits for FHA, Freddie Mac, and Fannie Mae. In Franklin County the loan limit for an FHA loan is $341,250 and the maximum for Freddie and Fannie is $417,000.

NAR opposes Obama's budget proposal

Obama's budget proposal released last Friday would reduce the amount of mortgage interest that is tax deductible for families earning more than $250,000 per year. The National Association of Realtors believes that "this proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved." The NAR has expressed its concerns to President Obama and Congress.

Wednesday, February 25, 2009

Mortgage Costs

"Rates are low, but expect to pay more fees for a mortgage today.

New rules by Freddie Mac and Fannie Mae are upping the fees for borrowers with less than perfect credit, those in the mortgage industry say. Other increased costs reflect the uncertainty in the mortgage market, as lenders try to reduce their risk and anticipate rates.

According to Freddie Mac's weekly rate survey, the average rate on a 30-year fixed-rate conforming mortgage was 5.05% in January 2009, and a payment of an average 0.7 point was required to obtain the rate. A year ago, the average rate was 5.76%, but it took less to get that rate -- an average 0.4 point was required."

You can get a lower rate by paying points (pre-paid interest), but should do the math to determine if it's worth it. If you are planning to live in the home a long time it is a better decision to pay points up front and to have a lower interest rate in the long-run, but if you won't own the home for a long time, it may not make financial sense.

When comparing lenders make sure you ask about both the interest rate and the closing costs which include lender fees and points to make sure you are making the best decision.

http://finance.yahoo.com/loans/article/106630/Mortgage-Costs

Foreclosure Help

Another good question from MSNBC's answer desk:

If my home is already in the foreclosure process, can the homeowner bailout help? Or is it too late?
Alicia O.

It’s not necessarily too late if you meet the criteria and your lender is willing to modify your loan. Many lenders have agreed to stop foreclosures already in progress until they have a chance to review them to see if the home can be saved with the help of the new plan.

Unfortunately, not everyone is going to be eligible for help. If you can’t show that you have enough income to cover even a modified loan, the plan can’t help.

The main provision of the plan is a series of financial incentives (payments) to lenders who agree to cut your monthly payment. The two most common ways to do this are to lower your interest rate to the current market rate or to stretch out your payments for 40 years. (You’ll still pay as much, you just get longer to do so.)

So if you live in the home backed by the mortgage you want to change, and if your current interest rate is much higher than the market rate (about 5.25 percent at this writing), you may be a good candidate for a new, more affordable loan. Even if you’re already in foreclosure.

The goal is to come up with a monthly payment that amounts to no more than 31 percent of your monthly income. If, after cutting your rate and stretching out your payments, you still don’t have enough income to meet that 31 percent threshold, the plan probably won’t work for you.

Aside from the burden of unaffordable monthly payments, many homeowners are carrying a mortgage that’s bigger than their home is worth. In some cases, lenders may be willing to reduce the principal down to the level of your home’s current value. After all, if they foreclose, they’re going to lose that money anyway.

But that’s up the lender or the company “servicing” your mortgage for the investors who own it. The program is entirely voluntary.

http://www.msnbc.msn.com/id/29306760/

Housing Relief Backlash

Here is a good question from MSNBC's answer desk:

How will the homeowner bailout affect responsible borrowers such as myself? I purchased my condo two years ago, borrowed what I knew I could afford considering my budget, and am not at risk of foreclosure. It seems unfortunate that we are bailing out those who did not borrow responsibly or did not truly understand their mortgages before signing them. So on top of me not seeing any advantage from the housing bailout, my taxes will most likely increase as well.
— Lars M., Evanston, Ill.

You’re not alone in wondering why your taxes should be used to help your neighbor make their mortgage payment.

The Obama administration’s plan to use $75 billion of tax dollars help some homeowners pay their mortgages touched off a huge backlash. Apart from a flood of mail to the Answer Desk inbox, the outrage was galvanized by CNBC's Rick Santelli, who covers the commodity markets in Chicago. On Thursday, Santelli gave voice to that outrage in an on-air rant that — among other things — called for a “tea party” this summer to protest the administration’s plan to “subsidize losers’ mortgages.”

It was apparently a rant heard ’round the world — or at least ’round YouTube. On Friday, White House press secretary Robert Gibbs felt the need to respond directly to Santelli’s attack on the Obama's foreclosure relief plan by noting that many homeowners facing foreclosure won’t be eligible for help, including investors and people who “long ago knew they were in a house they couldn’t afford. Instead, he said, the plan is targeted toward helping people “who aren’t yet in trouble keep from getting in trouble.”

Gibbs also pointed out that millions more Americans will benefit from the government’s comprehensive effort to drive down mortgages rates, allowing homeowners who aren’t in trouble refinance to a better rate and save money.

Preventing foreclosures also pays benefits to anyone who owns a home by slowing — and possibly stopping — the ongoing slide in home prices. Each new foreclosed property — sold at fire sale prices — drives down the value of every other home on the street.

“If you live in a home that’s near one that’s been foreclosed, your home value likely has dropped by about 9 percent, which for the average home is about $20,000,” Gibbs told reporters Friday.

According to the U.S. census, there were about 75 million owner-occupied homes at the end of 2008. By our math, that means that the $75 billion being spent to prevent foreclosures works out to about $1,000 per owner-occupied home. Which means you’re spending $1,000 in taxes to head of the loss of $20,000 on the value of your house. These days, that doesn’t seem like such a bad investment.

Gibbs invited Santelli to the White House to go over the plan and explain why it helps all homeowners.

“I’d be happy to buy him a cup of coffee,” said Gibbs. “Decaf.”

http://www.msnbc.msn.com/id/29306760/

Housing Stimulus Package details

I was on vacation last week, so I didn't get a chance to post the final details of the Housing Stimulus Package. Better late than never, right?
  • Effective for purchases between January 1, 2009 and December 31, 2009.
  • Tax credit for lesser of 10% of the cost of the home or $8,000.
  • Eligible properties are single family houses, condos, and co-ops.
  • Reduces or can eliminate tax liability for the year of purchase. Any unused amount of tax credit is refunded to the purchaser.
  • Full amount of credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps.
  • Purchasers and/or spouse may not have owned a principle residence in previous 3 years.
  • Purchasers who utilize revenue bond financing can use credit.
  • No repayment unless the home is sold within 3 years of purchase. The amount of credit is recaptured on sale.

Coldwell Banker King Thompson Qualified Answers TV Commercial

more loans for investors

Here is some news for all of my readers who are investors:

Fannie Mae has agreed to begin purchasing and guaranteeing mortgages for investors who have loans on up to nine properties, starting in March. This is an increase from the current limit of three. With low interest rates and reasonable prices, it is a great time to invest.

Real Estate Outlook: Bottom in Sight?

This article by Kenneth R. Harney points out several sources of good news in the housing market. Two weeks ago, chief economist of Moody's Economy, Dr. Mark Zandi, surprised analysts by announcing that "the bottom of the housing downturn is in sight for the nation."

A few days later the Wall Street Journal published an article titled, "it's finally time to dive into the housing market." The article focused on purchasers in Phoenix, Seattle and Connecticut who recently found that lower prices and affordable mortgage rates made ownership possible for them. They got what appear to be great deals. The Journal quoted one Phoenix buyer who had just picked up a bargain-priced first home as saying, "six months ago, I didn't think I would ever own a home. Now I do. It's so perfect."

Just as housing's troubles preceded the rest of the economy on the way down, there are increasing indications that housing could be out ahead on the national economic recovery. Pent-up demand is strong, affordable financing is there for buyers with decent credit and a down payment, and improved federal tax credit incentives make the equation even better.

Saturday, February 14, 2009

latest on the housing stimulus

Please note that this has not officially passed yet, but I want to post the latest news for anyone who is in suspense like I am! The House and Senate agreed on terms of the housing stimulus package. They increased the tax credit to $8000 from $7500 and removed the repayment feature as long as the owner remains in the house for at least three years. This is for homes purchased between January 1 and December 1, 2009. It will still only apply to first-time home buyers. President Obama will still have to sign it before it goes into effect.

Tuesday, February 10, 2009

Historical Interest Rates

Many of us (myself included) tend to take these historically low interest rates for granted. Many don’t realize how good we have it when it comes to financing their home. To give some historical perspective, here’s a taste of where 30 year fixed mortgage rates have been over the years:

April 1950 4%
October 1966 6%
July 1974 9%
February 1980 12%
September 1981 17.5%
March 1985 13%
November 1988 10%
August 1992 7.5%
July 1996 8.25%
January 2001 7.03%
July 2004 6%

Today 5.25%

Source: Derek Harris from the Arlington Bank

Wells Fargo Cancels Las Vegas Trip

Wells Fargo cancelled their traditional appreciation trip for over 1,000 of the top employees and guests to Las Vegas after receiving criticism for having this event despite receiving a bailout of $25 billion. At first they defended their trip as a tradition and part of their culture, but cancelled because of scorn from Capital Hill investors and lawmakers. These were lavish events where they would stay in top hotels, receive fantastic gifts and awards, viewed performances by Jimmy Buffett, Cher, or Jay Leno and/or participated in wine tastings, horseback rides, or helicopter rides. They said they had planned to scale down the trip this year before being forced to cancel it.

http://www.msnbc.msn.com/id/28999671/

E-Pro


Hello Readers,

I am now officially an E-Pro! It is a designation from the National Association of Realtors that proves that I am savvy with e-mail, websites, Internet marketing, social networking, e-groups, blogging, smart phones, laptops, digital cameras, u-fax, etc. The Internet and e-marketing are the way of the future as more and more consumers look online for on-demand information rather than interruptions of irrelevant commercials during their favorite TV shows. Plus, consumers are turning toward their social networks for recommendations about products or services rather than blindly purchasing something off the shelf. That's why I present this blog to you so you can be educated consumers.
By the way, check out the links and mortgage calculator I added in the left column. I hope you find these helpful!


Your favorite E-Pro,

Karen

Friday, February 6, 2009

Columbus Blue Jackets Partnership

Coldwell Banker King Thompson is the official real estate company of the Columbus Blue Jackets. They offered us and our clients, family, and friends discount tickets between March 3rd and April 5th. Upper bowl tickets are $26 and the lower bowl is $60. Please contact me if you are interested and I will hook you up!

Tuesday, February 3, 2009

Home Fads that are Falling out of Style

An article from Realtor magazine explains features that are falling out of style in Las Vegas. Ohio styles follow Las Vegas, right? Here are six features decreasing in popularity:
  1. fireplaces: gas fireplaces can be expensive and wood-burning ones aren't very energy-efficient
  2. carpet: replaced by hardwood floors
  3. living room: this formal room hasn't been missed by buyers
  4. desks in the kitchen: tend to be too small and lead to clutter
  5. skylights: just disappearing
  6. upscale kitchens: granite is being replaced by affordable, low-maintenance laminate

Article by Melissa Dittmann Tracey

Multiple offers

Although it's not as common these days except on distressed properties, there is always the possibility of having multiple offers on a house that's for sale. The debate is, do you disclose the multiple offer situation to the involved buyers and their agents or not? On one hand, the buyers may present their highest and best offers or even out-bid each other in hopes of getting the property, but on the other both buyers could decide it's not worth it to inflate the price, back out of the deal, and move on to another house. In the first case the seller may get a higher price for the house, but in the second case the seller may not get a contract at all. Research from Realty Times suggests that overall it's better for the seller to disclose the multiple offer situation. If you are selling a house you should discuss with your Realtor what you would do in a multiple offer situation when you first sign with him/her, before the situation even comes up.

OHFA follow-up

As you saw in my post a few days ago the Ohio Housing Finance Agency (OHFA) brought back its down payment assistance grants. I just received the news about their interest rates. Currently, a 30 year fixed rate OHFA loan has an interest rate of 6.375% whereas an FHA loan is 5.5% and a conventional loan is 5.25%. The FHA loan requires a 3.5% down payment and a conventional loan needs a 5% down payment. So, if you have any money saved up, those may be better options for you.

Monday, February 2, 2009

Possible housing stimulus proposals

The economic stimulus package is being discussed in the Senate. Here are a few ideas that have been proposed:
  • 4% interest rate: a 30 year fixed rate mortgage offered to qualified buyers and homeowners seeking to refinance. The goverment would pay for the difference between the market rate and 4%.
  • tax credit: expand $7500 credit to all buyers (now just for buyers who haven't owned in the last 3 years) or increasing the tax credit to $15,000. Another idea is to remove the repayment feature of the tax credit.
  • 90 day hold on foreclosures: gives homeowners some time to work out the situation with their lender

Let's hope that the Senators come up with a good plan to boost our housing economy!

http://money.cnn.com/2009/02/01/news/economy/Senate_stimulus_housing/index.htm?postversion=2009020117

Thursday, January 29, 2009

down payment grant money

The Ohio Housing Finance Agency (OHFA) has announced that it will be bringing back its down payment assistance program. Now, the minimum down payment on any loan is 3.5%. OHFA will give qualified buyers 2.5% so the buyer would only have to come up with the remaining 1%. There are no repayment provisions on the money. The details have not yet been announced, but buyers should consider the interest rate on these loans as they may be higher than FHA or conventional rates.

Sunday, January 25, 2009

home inspection

You're in contract on a house, now who should you hire to do your home inspection? It should be someone you can trust to give you an honest, well-educated opinion, right? Unfortunately, inspectors don't need to have a license to practice. So, anyone can call him/herself an inspector even without knowing much about houses. One thing you can do to protect yourself is to make sure that your inspector is ASHI certified. That means that they belong to the American Society of Home Inspectors. ASHI requires their inspectors to have inspected at least 250 homes, have passed an examination testing their knowledge of residential construction, defect recognition, inspection techniques, and report-writing as well as ASHI's Standards and Code of Ethics. They also have a list of items to inspect and report on, giving you a more thorough inspection. For more information visit www.ashi.org.

Tuesday, January 20, 2009

Troubled Asset Relief Program

Obama is proposing to use the $350 billion left in the Trouble Asset Relief Program differently from how Bush and Treasury Secretary Henry Paulson used the first half. These funds are used for mortgage relief, by lowering interest rates and reducing foreclosures. The TARP proposal would eliminate the repayment feature of the first-time homebuyer tax credit and expand it to all home buyers, reinstate the higher mortgage loan limits for FHA, Fannie Mae, and Freddie Mac, and lower mortgage interest rates through a buy-down program.

The National Association of Realtor's Chief Economist Lawrence Yun comments on the proposal. He says that with the tax credit an additional 2.22 million households would meet the income requirements to qualify for a loan, but only one in four would make a purchase, resulting in an additional 555,000 home sales nationwide.

Friday, January 16, 2009

Just sold!


I just helped a client purchase this house at 2218 Nottingham Road in Upper Arlington. I think this was the most well-maintained home for its age that I've ever sold. I think it'll be a wonderful home for many years. Congratulations, Steve! I hope you and Katie enjoy it!

Thursday, January 15, 2009

interest rate predictions

Dr. Ted C. Jones, the chief economist of Stewart Title has been known for his accurate 2008 economic predictions of the recession, interest rates, home price decrease, and local and national employment loss. He is predicting that interest rates will reach 8% within the next 24 to 36 months. If you have a 3.5% down payment, good credit, and steady income, now is the time to buy! The bottom of the market can only be found in hindsight. Don't miss out!

I'm famous!

I forgot to mention it earlier, but I was in the Columbus Dispatch last Sunday! The home I sold at 886 White Willow Lane was highlighted as one of the recently sold properties at the top of the real estate section.

Sunday, January 11, 2009

Village Communities

The Coldwell Banker New Homes and Condos Division has a new client! I'm now a sales rep at Kensale Village, a Village Communities condo complex twice a week. These condos are a really great opportunity! They are 3 bedroom condos with the main living area all on one floor. They come with fireplaces, attached two car garages, and have plenty of features that would be upgrades for other builders already included in the price, which starts at $190,000. Also, you get a pool, clubhouse, workout room, and a one year membership to the Kinsale Golf and Athletic Club. They are located within walking distance of all the Olentangy schools, at Sawmill Parkway and Hard Road. Come visit me there!

http://www.villagecommunities.com/communities/community.cfm?communityID=30

Showings are up!

This week the number of showings on Coldwell Banker listings dramatically increased. Buyers have some time on their hands again now that the holidays are over and are out and about. Last year the number of showings continued to increase until the middle of May then slowly began to decrease. If you are thinking about selling your home, now is the time to get it ready to put on the market!

Mortgage rates dip to new all-time low

The 30 year fixed rate fell to 5.01%, its lowest level since Freddie Mac started conducting its survey in 1971.

The 15 year fixed rate loan rate fell to 4.68% its lowest since 2003.

Mortgage rates have been declining for the last ten weeks since the Federal Reserve announced its decision to purchase mortgage backed securities from Fannie Mae on November 25, 2008.

Since November rates have dropped an average of 1 1/2 percent. That saves you $184 per month on a loan for $200,000!

http://money.cnn.com/2009/01/08/real_estate/mortgage_rates/index.htm?postversion=2009010811

Thursday, January 8, 2009

Columbus Real Estate Investor's Association

Last night I went to the Columbus Real Estate Investor's Association. I thought it would be a good opportunity to meet some investors and learn more about investing. Of course I knew some of the basics already, but they taught some really creative buying and financing techniques that I hadn't thought of. The guest speaker, Wendy Patton had some good points on how to help sellers who need to sell quickly (perhaps from having two homes) and buyers who wouldn't otherwise be able to qualify for a loan. The association really helps to teach investors new techniques and offers a great opportunity to share ideas with fellow investors and learn from each other. If you are thinking about investing in real estate, I would recommend it. Their website is http://www.columbusreia.com/. Don't forget about the Realtor who sent you there! :-)

Tuesday, January 6, 2009

10 Day Sale results

From October 10th through 19th Coldwell Banker held a national 10 day sale where participating sellers reduced the price of their homes by at least 3%. The properties were labeled as being on sale, increasing their exposure. Two-thirds of the participants reduced their prices permanently, revealing the difference between what they thought the house was worth and what the buyers were actually willing to pay. At the time about 32,000 homes were on the market and about 6% went into contract. The sellers were very pleased with the results, especially since that was the only good news going on in the marketplace at the time.

The sale resulted in increased press for Coldwell Banker as well. About 120 television clips aired about the sale and in Pittsburgh the sale was the top story on the evening news. The stories included a $24 million sale where a couple arrived with cash in hand during the event. Also, an agent walked into a Coldwell Banker office saying "My company is not doing anything for me; can I work for you?"