Buyers-mark your calendars-now!

The first time homebuyer tax credit ends November 30, 2009.  That means in order for buyers to qualify for up to $8,000 tax credit, the property much be purchased and closed on or before the end of November.

Keep in mind that most real estate transactions today require 30-45-60 days to close- so don’t delay getting the process started. And remember if you are focused on purchasing a foreclosed or short sale property- the timeframes are much longer.

• The first time homebuyer program is limited to 10% (maximum of $8,000.) on the purchase of your primary residence.
• Income limits apply- individuals up to $75,000 and couples $150,000.
• Eligibility- first time homebuyers or anybody whose has not owned a principal residence in the last 3 years.

For more detailed information- click here.

A lot of buyers in metro Cincinnati, West Chester and Mason real estate market have already taken advantage of the tax credit.  Personally, I am hoping lawmakers decide to extend the program.

Still have questions- call or email with questions.

Related articles:  Are You Ready to Buy a Short Sale?;  National Association of Realtors Links

Driving around looking at homes-one thing catches my eye.  The lush green grass and flowers blooming everywhere.

It may be a slower real estate market, but sellers in West Chester, Liberty Township, Fairfield and greater Cincinnati are enjoying a rest from hauling out sprinklers to keep the grass green.  The flip side of all this wet weather is the need to keep up with the constantly growing grass and never ending weeds.

Take a good look at your “real estate” as you drive down the street and make sure your property has curb appeal.  Buyers notice messy yards long before their car hits the driveway…and based on the exterior “look” there’s a good chance they’re  making assumptions about the inside.

Don’t lose the buyers before they walk through the door.  Need help preparing for getting your property on the market- call or email.

The mortgage industry has been under siege to provide homebuyers better information when it comes financing loans.

In 2008 amendments to Home Ownership & Equity Protection Act (HOEPA) and the Housing Economic Recovery Act (HERA) were passed by the Congress and the Federal Reserve Board published regulations under the Truth in Lending Act (also known as ”Truth in Confusion Act” by many).

The impact of HERA (effective July 30, 2009) may impact future closings because of the timeframe requirements. The intent – to keep buyers informed about any impact on APR (annual percentage rate).  The outcome may be many closings delayed by three days because the lender did not provide updated information to the borrower in a timely manner,

So you have sold your home (this only impacts transactions after July 30th) and expect to close August 28th.  You, the buyers, agents and title company sit down at the closing table….and because proper documentation was not provided to the buyer 3 days earlier- the closing will not happen on August 28th.

The greater Cincinnati market prefers “round table closings” – where all the parties sit together and sign paperwork.  In light of the new regulations, all parties might be better off with “escrow closings”. 
Escrow Closings – the seller signs all their documents at their convenience and the buyer will sign theirs.  The lender is advised that all documents are executed and funding/disbursements can happen.  Escrow closings are easier in 2 ways:

1. All the parties can sign when it is convenient for them (still within contract dates)
2. No dry closings (dry = no funds disbursed) because all the paperwork has been completed and submitted to the lender.

The downside of escrow closings is the cost.  Since the title company has to manage different parties at different times- their costs increase.  However to be fair the Cincinnati market has been sliding along with title companies willing to accommodate different schedules for both parties and not charging for the services.

In today’s transactions many of the contracts have the same date for closing and occupancy and considering what it costs to have a moving van parked out front for three days or pay contract penalties for not closing on time- the few extra dollars for escrow closings may save money in the long run.

Let me know what you think. 

UrbanCincy.com recently posted a story about how much fun it is to shop at  Findlay Market. 

It was a great reminder about this and so many other places in Cincinnati that we used to visit on a regular basis.  For us Findlay market was a requirement at least once if not twice a month.  Unfortunately it has been too long since our last visit and the “meat rubs” are running out.

Now it is our turn to help the market by casting your vote for Findlay Market.  Local Harvest is sponsoring a contest to select the best farmer’s market- so vote now. 

Vote for Findlay Market.

Most buyers think the hardest part of real estate is finding the “perfect home”!

Truthfully the most difficult part of any real estate transaction is the time between signing the contract and closing.

Honestly there’re a lot of hurdles to jump before you get the keys.

Buyers can avoid some (but not all) of the stress by listening and following the timeline dictated by the contract.  Some of the biggest pitfalls happen when buyers:

• Don’t have adequate funds in checking account to cover earnest money
• Fail to follow up with lender after loan application. Lenders usually require additional information or documentation and with all of today’s privacy rules may not contact your agent.  YOU- need to stay in the “loan loop”
•  Home inspections timelines are part of the contract.  Any changed to the contract dates should be negotiated and signed off by sellers and buyers.  Failure to inspect and submit addendum for “fixes” in a timely manner often leads to problems down the road.
• Purchase Home Owners or Hazard Insurance-lenders require borrowers purchase a one year policy of home owner’s insurance covering damage to structure.  This has to be purchased prior to closing.  Many buyers wait until the morning of the closing or confuse the insurance policy with a “Home Warranty” or “Title Insurance”.
• Plan ahead and transfer all the utilities to your name for the date of occupancy.  (Some utilities still require a human to come down to the office and apply for service.)
• Make sure you understand the reasons why you should purchase title insurance (available at closing)
• Finally- the cashiers or certified check for closing should be made out to the buyers- who then sign over funds at closing. 

According to data from the Multiple Listing Service of Greater Cincinnati, 1312 single family homes and condos (for Hamilton, Clermont, Warren and Butler Counties)  have gone pending (under contract but not yet closed) so there are a lot a buyers working through contract to closing.

Jumping the real estate hurdles is easy if you plan ahead and keep pace.

If you need help getting to the finish line or would like to share your experiences- feel free to comment or email.