Real Estate Board Games
November 30th, 2009 categories: Real Estate Buying, Real Estate News, Real Estate Selling
The holiday weekend provided time away from Cincinnati real estate. The good news is that very few people I crossed paths knew that I’m a Realtor. Better news, they openly talk about problems with the market and, their Realtors. I really don’t know the “real details” but most of the problems seem to stem from raggedy process that a lot of home sales seem to follow these days.In the good old days, most purchases (sales) were like a fairly predictable board game-think Monopoly. You shake the dice, moved around the board and eventually the game concludes with a winner. Occasionally there were some bumps- players sent to jail or a competitor with so many hotels on a property that you begged for mercy.
Playing Monopoly is fairly orderly and many real estate transactions play out the same way.
Unfortunately many of today’s deals are play out more like “Chutes and Ladders”. You remember ”Chutes and Ladders”. No orderly path, just on the verge of crossing the finish line and whoa….down the chute only to start the process all over again. No amount of plotting or partnering saves a player from their fate.
If you remember “Chutes and Ladders” you have some insight into many of today’s real estate transactions.
Everybody (sellers, buyers, title companies, inspectors, lenders) all moving along -then somebody hits a “chute” and we get to start part of the process all over again.
“Chutes” can appear when:
- inspections are not completed in a timely manner
- title issues
- lenders change their minds about the loan halfway (or 3/4 of the way) through the process.
- buyers or sellers don’t communicate with their agents
- agents don’t communicate with buyers or sellers
- relocation company intervention
- short sales- lender(s) dragging their collective feet
Understanding the rules and the type of real estate board game you are playing could help reduce some of the frustration.
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Just the Facts on the Home Buyer Tax Credit(s)
November 21st, 2009 categories: First Time Buyers, Real Estate Buying, Real Estate Selling
There is a lot of information floating around about the recently passed home buyer tax credit bill. The Cincinnati Area Board of Realtors produced a useful informational piece about the extension as well as details about the credit for “repeat” buyers. For current property owners, the repeat buyer could be just enough of an incentive to move on to your next home.
See sections of the article below:
“Congress just recently voted to extend the tax credit until April 30, 2010.
Eligibility requirements have been broadened to make the money available to both first-time homebuyers and “repeat” homebuyers who have owned a home as their primary resident for at least five of the past eight years. For most people, maximum qualifying earnings is based on their adjusted gross income (see line 37 on the 1040 federal tax form).
In most situations,single buyers can now earn up to $125,000 per year and get the full credit; and joint filers can earn up to $225,000 per year. The credit decreases for single buyers who earn between $125,000 and $145,000 and for buyers filing jointly who earn between $225,000 and $245,000. 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.
In either case, you must have a binding purchase contract no later than April 30, 2010, and you must close the transaction by June 30, 2010.
Any home you purchase will qualify for the credit, provided the purchase price does not exceed $800,000. This includes single-family detached homes, condominiums and other residences. However, you cannot receive the tax credit if you purchase a home from other family members: your parents, grandparents, children, grandchildren, or your spouse’s family members.
Congress’ decision to extend the credit and expand it to a larger home buying group is indeed good news for everyone; not only prospective homebuyers, but home sellers, Realtors, lenders and our community at large. Economists estimate the tax credit has already contributed about $22 billion to the general economy, and a total of about two million people will take advantage of the tax credit. The extension and expansion will make it possible for more individuals to take advantage of the low interest rates and affordable prices, and most importantly, invest in their future through home ownership.”
—Reported by the Cincinnati Area Board of Realtors®
The Board also provided a simple table explaining eligibility:
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Record Setting Year for First-Time Home Buyers
November 18th, 2009 categories: First Time Buyers, Real Estate Buying, Real Estate Stats
According to the National Association of Realtors the results of the NAR Survey indicates that first-time home buyers are fueling the real estate market.
- 47% of all Americans who purchased a home this year had not previously owned one during the previous 3 years
- The rate for first-time buyers has increased from 41% in 2008 and 36% in 2006.
- The first-time buyer tax credit (now in effect for contracts written prior to May 1 2010) gives a credit up to $8,000 which can be deducted from income taxes.
Sellers thinking about waiting until the spring market should evaluate the impact of first-time home buyers and may decide to list now. Questions or concerns about the local real estate market- let me know.
Related Articles: First-Time Home Buyers-CNN Money; Real Trends
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The “How To” Buy a Bank Owned Home
October 16th, 2009 categories: Foreclosures, Real Estate Buying, Real Estate News
A friend sent me this great “how to” video on YouTube. The video provides instructions on the process of buying bank owned homes. While it is somewhat over the edge-there is a lot of truth in the presentation.
Hope you enjoy.
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Compare Cost of Real Estate in Cincinnati to Your Favorite City
September 30th, 2009 categories: Real Estate Buying, Real Estate News
Have you ever wondered what your home in greater Cincinnati would be worth in Chicago or Sarasota?
Good news, Coldwell Banker has a neat Housing Price Calculator Index (HPCI) to help you find out. The HPCI is based upon a single‐family dwelling with approximately 2,200 sq. ft., 4 bedrooms, 2 1/2 baths.
According to the index a single family home worth $250,000 in Cincinnati is worth:
- $1,019,231 in Chicago
- $350,962 in Sarasota
- $754,808 in Seattle
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