On Wednesday, January 23,2008 Walter Williams posted a great article on townhall.com detailing issues surrounding the subprime bailout.
In the article he reported that according to Temple University’s professor of economics William Dunkelberg:

• 96% of all mortgages nationwide are being paid on time.

• 30% of American homeowners have no mortgage.

• Delinquency rates were higher in the 1980’s than they are today.

• Only 2% to 3% of all mortgages are in foreclosure.       

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Spring has started to bloom in southeast Ohio!

A quick check of the greater Cincinnati Multiple Listing Service (MLS) this morning is a clear indication of the beginning of the spring market. Since 1/1/08 a total of 1083 single family homes/condos have gone “pending”. Pendings (properties with accepted contracts waiting for the transaction to close) reflect the marketplace and our area, while slower than past years, is still chugging along.

Pendings:

Hamilton County-588
Clermont County-135
Warren County-124
Butler County - 236

On the fence about putting your home on the market?

Since the spring market is starting to blossom -you may want to consider obtaining a competitive market analysis from your realtor in order to make an informed decision.

If you need more a detailed statistical breakdown for your neighborhood, give me a call or send and email.

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The housing market in Fairfield and Fairfield Township is loaded with affordable housing values for smart buyers.

First, let’s take a look at the local market for the last 5 years:

Fairfield, Ohio average sale price for single family homes and condos (data obtained from the Greater Cincinnati MLS):

2003 $133,842
2004 $142,462
2005 $148,048
2006 $146,878
2007 $137,141

Fairfield Township, Ohio average sale price for single family homes and condos (data obtained from the Greater Cincinnati MLS):

2003 $165,549
2004 $170,635
2005 $177,606
2006 $178,257
2007 $174,407

Appreciation on property in Fairfield from 2003 to 2007 and 2.5%and for the same period in Fairfield Township 5.4%. Utilizing the same data the newspapers or TV blurbs on real estate- the headline would be “The Sky is Falling on Real Estate” News has always followed the “If It Bleeds-It Leads” mentality and savvy buyers are ignoring the headlines to grab up great deals.

Currently there are 252 single family homes and condos for sale in Fairfield and 147 in Fairfield Township so you need to find the right house and begin to ask questions.

• How many days on the market?
• How many are new construction vs. resale (in Fairfield 25 new construction and 22 in Fairfield Township)
• Where are the sellers going?
• What are homes actually selling for in this neighborhood or area?
• Mortgage Smarts

How many days on the market-not only the current listing- but total days on market. Your agent is able to print a property history from the greater Cincinnati MLS. A long time on the market may indicate an unwillingness to negotiate or it may reflect overpricing early in the process and the owners are finally in step with the market. Homes that have been on the market for just a few days may not be quite as negotiable as ones on the market for several months.

Where are the sellers going- motivated sellers are more willing to negotiate. A seller who has already closed on their next property, carrying two mortgages should be more motivated than a seller who is waiting to sell before purchasing the next property.

Many buyers make the mistake of grossly under bidding for a home (low low ball) and ultimately pay more or lose the property because the home owner was insulted. Your agent will provide you with a CMA (Competitive Market Analysis) of the neighborhood. The CMA should include current listing, sold pendings (sold not closed), closed and expired listings. A good CMA should contain current data- not sales from more than 6 months. Given the data- is your offer within the range for the neighborhood? For example homes are selling between $165,000 - $185,000 - as the seller how would you respond to an offer of $140,000?

Finally, make sure you are dealing with a reputable lender and you have a handle on mortgage rates, points and closing costs. The best buyer has their loan approved, pending a purchase contract and appraisal. The buyer with “loan in hand” glitters in the eyes of sellers. If you have not secured a loan, the minimum you need is a letter from a lender clarifying your status as a borrower. The more detailed (credit file reviewed, money for the down payment and closing) the lender’s letter the better you look to the sellers.

Do your homework! Select the right home or condo, write a balanced purchase contract and your home in Fairfield Township or Fairfield.

If you need my assistance, I would be happy to assist you- just call or send an email.

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Trying to make a major home buying decision?  Do you buy a used home or build a new home?

You have been house hunting for awhile and the thought of moving into a “used home” is turning you off?  Your house hunting efforts may have turned to new construction.  There is something so intriguing about being the first to live
 in a home- it’s new, it’s clean and hopefully,  all the colors match your furnishings.  

Whether you are building a multi million dollar palace or contracting to build in a local subdivision, there are 3 things you need to know:

1. Know your builder

2. Know if your personality is suited to building

3. Know your budget

Check out the builder, don’t hesitate to ask for references, check with the Better Business Bureau and drive around the neighborhood and talk to the neighbors.  Many (but not all) require substantial down-payments and you need to do your research prior to signing on the dotted line.  You are probably wondering why I would even suggest “due diligence” since it is so obvious-yet you would be amazed at how many buyers sign first and discover problems later.

Is you builder a member of the Home Builders Association?  If yes, they have agreed to abide to a set of industry standards for construction and repairs.

Not everybody is suited to building a new home. Delays, construction issues, changing plans as the home progresses, cabinets not quite the shade you ordered often leaves some buyers regretting they ever began the project.  On the other hand, if you can handle a moment or two (or three or four)of stress, building a home can be worth the effort.  We have built twice and I would build again in a heartbeat.  (and yes we did encounter some stressful moments)

Budgeting is critical, even if you have signed to build a home in a subdivision.  The normal buyer is usually not happy with the either the light fixtures, the carpet or the appliances.  These add-ons can significantly increase the final cost.  Take a close look at the fixtures, carpet/padding, appliances, furnace capacity and so on.   Make sure you spend your building dollars on items that are very expensive to upgrade later.  You can always upgrade carpet or light fixtures after a few years, it is much more difficult to add a few feet to the family room or additional space to the garage.

Using common sense, doing your research and having patience are all part of building a new home.  If you have some questions or concerns, give me a call or send an email.

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 ”Rule No. 1: Never lose money.  Rule No. 2: Never forget 
   rule No. 1.”    Warren Buffett

Are you the frazzled seller -no buyers on the horizon-  carrying two mortgages or transferred to a new city?

Recently John Matarese, host of  the popular news segment “Don’t Waste Your Money”offered advice to frustrated home sellers to consider renting their unsold houses.  I think for some sellers that is great advice assuming you have a good tenant and you are not moving out of town and can handle the “landlord/management” functions of a rental property.

A list of things to think about if you are moving out-of-town:

- Who will keep an eye on the property and handle routine maintenance items?
- How much of a deposit can be secured in case the house needs major resotoration prior to
   selling?
- Will the rent cover your current mortgage, interest, insurance and property taxes?
   If it does not cover the expenses, how much can you afford to lose each month?
- Are there any tax implications to you when you become a landlord- make sure to consult  
   your tax professional so you don’t have a problem at tax time.
- Where are you going to advertise for a tenant and what is your advertising budget?

After you add up the pros and cons (and expenses) of renting your home, think about dropping the sale price on the property in order to get the house sold.   Run the numbers on the financial impact of selling for x amount of dollars and closing within 90 days.  Compare the expenses for both options and make an informed decision about rent or sell.

There are alternatives to renting!

If selling at a reduced price won’t work, there are other options to renting such as “land contract” or ”lease with option to purchase”  which usually require more commitment from the tenant and may set up a win/win for both the seller and the buyer.  Your real estate agent or attorney can explain about a  land contract or a lease options. 

Consult with professionals to get all the facts and then make an informed decision about selling, renting, land contract or lease.  If you have unanswered questions give me a call or send an email. 

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