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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HomeGain’s Top 12 Real Estate Sale Maximizers!
November 12th, 2009 categories: Real Estate News, Real Estate Selling
Every year HomeGain conducts a survey to help sellers (and agents) figure out what “fix ups” provide the most bang for the buck. The results highlight some very interesting things- while many sellers think they need to redo their entire house (and some do need to gut everything) the following items paid off more than others:
- Cleaning and de-cluttering
- Home staging
- Lightening and brightening
- Landscaping
- Plumbing repairs
- Update electrical
- Replacing or shampooing rugs
- Painting interior
- Repairing damaged floors
- Updating kitchen
- Painting outside of home
- Update bathrooms
HomeGain also provides a neat tool to help sellers figure out which items need to be addressed- click here to use Home Sale Maximizer™.
Actually the survey reinforces some long held beliefs that simple, fairly inexpensive fixes aid in the sale of real estate and while no tools can judge the condition of your property-some honest answers will help motivated sellers get ready for the market. Need assistance getting your house ready for the market-let me know.
Related Articles: No Guarantees in Real Estate Remodeling
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FHA Repairs in Black and White
October 14th, 2009 categories: Real Estate Selling
In today’s real estate market, the majority of the buyers are financing their purchases with FHA loans.
For those of us who have been in real estate for awhile (1980’s) the FHA requirements are not new. However the demands made by FHA often surprise sellers who thought they were done with repairs after the home inspections. The FHA appraisal is not an inspection-but may lead to some additional repairs to your property. Our loan officer recently shared with us the 12 most common items sellers must complete for the mortgage to be approved.
According to FHA, the purpose of a repair is to correct deficiencies which may affect the health and safety of the occupants or the continued marketability of the property. Sellers in the know can correct the potential problems prior to marketing their property or at the latest prior to the FHA appraisal.
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If the home was built prior to 1978, (lead paint time) chipped or peeling paint must scraped and painted. This includes interior, exterior, garages, sheds, fences……
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Any useful components (furnace, appliances, floor coverings, etc) should have 2 years of useful life remaining. The roof falls into the same time frame and cannot have more than 3 layers of shingles
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Broken windows and doors need to be repaired or replaced
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No negative drainage issues (water draining toward dwelling). Correct problems which may include fixing downspouts and gutters or cutting french drains
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Health and safety hazards- ie: electric garage door won’t reverse. GFIC outlets are not a FHA requirement. (sometimes there are exceptions to this rule)
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Inoperable abandoned wells must be capped and sealed by a licensed well contractor
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Safety handrails should be installed in open stairwells with three or more stairs
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Any infestation (insects, mice, bats, rodents etc.) should be exterminated by licensed contractor
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All plumbing, electrical and heating systems should be in good working order
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Structural or foundation problems must be repaired
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Flammable storage tanks must be removed and filler cap sealed from the inside (usually old buried oil tanks)
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Crawl space must be accessible for inspection- homeowners need to “clear the way”
Good news-most of these items are standard “honey do” items that most sellers tackle before they market the property.
Whether you live in West Chester, Cincinnati or Mason FHA loan requirements will impact you! If you need more information about FHA -let me know.
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How to Deal with Seller’s Remorse
September 24th, 2009 categories: Real Estate Selling
We often hear about “buyer’s remorse”. You know that gut feeling you get when you make a large purchase and then a few hours or days hours later you begin questioning your sanity. Today there are 13,634 homes and condos for sale in the Multiple Listing Service of Greater Cincinnati and some listings exhibit symptoms of “seller’s remorse”.It is easy to spot them….
- Very hard to get an appointment. Properties for sale which require buyers (and their agents) to jump through hoops, turn in perfect circles while touching their noses and execute 3 precise click of the heels of their ruby red shoes before being allowed to view the inside of a property. What makes this even more interesting is that some of the most “difficult-to-show” properties are short sales or lender owned.
- Never reduce the price.
- Add numerous exclusions to any purchase contract. Sellers should list exclusions when they list their property- grandma’s chandelier, antique mirror in bathroom. Some sellers wait until they receive a purchase contract and them begin to exclude items from the deal. Best way to exclude heirlooms or expensive fixtures is to replace them prior to listing the property- out of sight and out of mind.
As you can see “sellers remorse” can impede the sale of the property. If you’re a seller reading this blog and shaking your head because you don’t think these are good examples of problems…..perhaps you have a full blown case of “seller’s remorse”.
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