How to Value Real Estate
June 29th, 2009 categories: Real Estate Buying, Real Estate Selling
(part 1 0f 2)
Are there 3 different ways to value real estate?
When I started in the business (20+ years ago) there was a funny comic depicting how the seller, buyer and appraiser looked at properties.
How the seller valued the property…
What the buyer saw…
…and finally how the appraiser valued the property.
At the time 75%+ of the financing was FHA and appraisers were sticklers about condition of the property. In effect, every sale had 2 inspections- one by the home inspector and then another one by the appraiser. We (seller, buyer and agents) worked through the issues and deals closed.
Value of real estate is in the eyes of the buyer.
Today, we are dealing with a “different” real estate market, however establishing a price on a property is still reflective of the 20+ year comic….seller’s value, buyer’s value and the mortgage appraisal. Lots of sellers utilize purchase price + appreciation + investment in property = list price. Buyers are often more sophisticated and arrive at value by comparison shopping….how does this 4 bedroom, 2.5 bath, 2 story differ from the one down the block? Finally the appraiser is the least subjective following fairly stringent guidelines when appraising a property.
(stay tuned for part 2 of 2 )
How should seller’s come up with a “List Price” for their property?
Related Article: What Do Buyer’s Really Know
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USDA Stamp of Approval on Real Estate?
May 12th, 2009 categories: Mortgage, Real Estate Buying, Real Estate News
Did you know the United States Department of Agriculture-Rural Development might finance a mortgage for you?
That’s right! USDA has a rural development program which may provide 100% financing for properties in parts of Butler and Warren counties.
Click here to see if the single family property is eligible for a USDA loan. Multi-family properties are also covered by the program.
An online calculator helps determine whether you are eligible for a loan- but if you need to talk to a loan specialist about the program- call or email.
The program covers limited areas- but if the property you are interested in buying happens to meet the criteria-why not take advantage 100% financing?
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What is the Location of $100,000 Real Estate in Greater Cincinnati Ohio?
April 7th, 2009 categories: Real Estate Buying, Real Estate News, Real Estate Sales
The Sunday edition of the Cincinnati Enquirer headlined an article “Return to the $100,000 House”. The article provided a report on a facet of the local real estate market of the greater Cincinnati- and buyers are calling to find “deals” in the West Chester, Mason, Liberty Township, Fairfield, Beckett Ridge and Fairfield Township markets.
According to the Multiple Listing Service of Greater Cincinnati (MLS) the following homes/condos sold for $100,000 or less from 03/31/08 thru 03/31/09:
So the simple answer is YES, if you are looking to spend $100,000 or less there are homes and condos available in the greater Cincinnati marketplace. Actually in Butler, Clermont, Hamilton and Warren Counties there are 3106 homes/condos currently listed at $100,000 or less.
You need to determine if any of the properties meet your needs and then proceed to house hunt and write a contract. There are deals being made and as the Enquirer stated…this is a buyer’s market.
In addition to a wide variety of housing inventory there are tax credits and number of affordable mortgage programs available. Need some direction or have questions- call or email.
Related Article: Value of Cincinnati Real Estate
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Are You Ready to Own Real Estate?
April 2nd, 2009 categories: Real Estate Buying, Real Estate News, West Chester, Ohio
The question use to be…should you buy a home in West Chester? Oakley? Mason? Fairfield?
But today’s foreclosures and economic uncertainty is forcing many potential home buyers “look before they leap” into home ownership.
Introspection and asking questions before purchasing real estate has always been the best approach. At the very least, as a buyer you should be comfortable with:
- Loans types and which mortgage fits your long term needs. Before you even begin to shop for a house or condo- get your loan approved (pending contract and appraisal). The lender should take the time to discuss all the mortgage options/ closing costs with you….and help you select the best option. Today many borrowers are using FHA mortgage products.
- Cost of owning a home- read up and understand about the actual costs of owning a home. Many buyers only budget for mortgage, insurance and taxes and forget about the cost of upkeep and ever changing property tax amount.
- Think about what type of home you want- newly built or resale. Both types of homes have pros and cons.
- Location. Where are you living with respect to work, schools, shopping, major highways, parks? What’s important to you?
- Using a realtor, purchasing a FSBO (For Sale By Owner) or going after a bank owned (and listed) foreclosure. Just make sure you have your bases covered- and if decide to go out on your own (without a realtor) make sure you understand the contracts or hire an attorney to review and advise.
- Purchase contracts are legal documents-and even though buyers review, initial and sign the contract- some still don’t understand they have committed to purchase a home or condo. If you are unaware of all the elements of a real estate purchase contract- request a blank copy for review. Mark it up and ask your agent (or attorney) about things you don’t understand.
All these steps seem pretty basic- but after watching hours of HGTV, many buyers are more concerned with how well the house is staged rather than focusing on the basics of affordability and condition.
Need help with your questions call or email. Better yet- subscribe to stay current the real estate market.
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Confused About First Time Homebuyers Tax Credit?
March 24th, 2009 categories: Beckett Ridge, Cincinnati, Ohio, Real Estate Buying, Real Estate News
The lastest flurry of bills passed in Washington has left many buyers (and realtors) somewhat confused.
The most important is the: Homebuyer Tax Credit – The bill provides for a $8,000 tax credit available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
If you have questions about your eligibility-contact a reputable lender (or in the case of bankruptcy you may want to contact your attorney) to discuss the details. In addition to the Federal Tax Credit many, many local municipalities within the greater Cincinnati real estate market are offering additional incentives…which is why you need to work with a lender with knowledge of the local market .
Other Sources of Information: IRS information, John Matarese Report, National Association of Realtors “Frequently Asked Questions”
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