For Sellers
Less Distressing News for Ohio Homeowners
February 4th, 2012 categories: For Sellers, Foreclosures & Short Sales
It’s Super Bowl weekend and we’re all busy preparing some unhealthy food types to enjoy while watching the game. So let’s keep the news short and sweet.
CoreLogic recently published real estate numbers for December and the real estate market in Ohio is beginning to look a little healthier. They toss around some numbers which help both Realtors and consumers get a better understanding about the impact distressed properties on today’s local Cincinnati real estate market as well as the entire state of Ohio.
CoreLogic’s 12 month Home Price Index for Ohio reflects some improvement-but look at how much distressed properties are impacting us:
Sales of all single family homes -7.7%
Sales of SFH minus Distressed Properties -0.2%
The distressed properties not only affect the neighborhoods- the glut has impacted appraisals too. The sooner lenders feel some pressure to institute a viable market responsive way to sell distressed properties Ohio and other states will keep suffering the effects of the glut on prices. It’s not about leveling the playing field- it’s about cleaning up the mess so everybody can begin to enjoy some stability in the housing market.
So whether you’re rooting for the Patriots, the Giants or are just looking forward to watching the commercials and eating junk food….it’s good to know the local real estate market is chugging along too.
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Absorption Rates in the Greater Cincinnati Real Estate Market
February 3rd, 2012 categories: For Sellers, Sales
Buyers and sellers often hear the term “absorption rate” used in throughout the greater Cincinnati real estate market.
Realtors, banks and relocation companies usually analyze “absorption rates” in order to determine how much inventory is currently available within the area. The formula is fairly simple:
- # of closed sales in the last year /12 = # of sales per month
- # of current active listings/ # of sales per month = # of months of inventory
- # of months of inventory = absorption rate
Looking at a few areas throughout the metro Cincinnati real estate market, Glendale has a 10.5 month inventory of single family homes for sale and Bridgetown has a 14.82month supply of condos.
Absorption rate is important when discussing whether it’s a “buyer’s” or a “seller’s” market. According to the Cincinnati Area Board of Realtors and the National Association of Realtors inventory in excess of 5 months tips the balance in the buyer’s favor. The more houses and condos on the market puts pressure on sellers to reduce prices in order to attract the next buyer.
And the Cincinnati real estate remains a market is definitely a buyer’s market…but some areas are showing more balance.
Most of the areas within the greater Cincinnati real estate market are still “buyers” markets but the chart below reflects that some areas with more than 12 months of inventory.
Greater Cincinnati Absorption Rate-Months of Available Inventory
| Single Family | Condo | |
|---|---|---|
| Anderson | 9.2 | 10 |
| Bridgetown | 7.3 | 14.2 |
| Clifton | 8.2 | 15.2 |
| Fairfield | 6.48 | 14.62 |
| Glendale | 10 | 3 |
| Hyde Park | 7.2 | 14.4 |
| Mason | 7 | 7.5 |
| West Chester | 5.58 | 10.62 |
| Wyoming | 8.21 | 7.6 |
The rate fluctuates as more houses and condos are listed and sold so if you don’t see your area on the chart or would like up-to-the -minute info-call or email.
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Cincinnati Real Estate Offer and Counter Offer
January 23rd, 2012 categories: For Buyers, For Sellers
How would you like to walk up to your favorite piece of real estate, point at it, then somebody would it scoop up, wrap in a bag, weigh it and tell you what you owed?
Buying real estate would be as easy as buying candy!
Many of today’s real estate buyers and sellers throughout greater Cincinnati are expressing frustration about the entire process and, as an agent, I’d have to agree. Pages and pages of paperwork, confusion how the process works (or doesn’t work), short sales, foreclosures, lender requirements and the list goes on and on. Most agents I know sit down and discuss the process with both their buyers and sellers prior to ever listing or purchasing a property..but somewhere in the excitement lots of people show symptoms of what I call “selective amnesia”. Also known as – we only remember what we want to remember. Sound familiar? I’m not making fun of people with selective amnesia- at times- we all suffer from it. We just need to recognize the stumbling blocks in the real estate buying/selling process and prepare in advance.
One of the most misunderstood steps in the real estate process seems to be making offers and handling counter offers.
For some reasons buyers, sellers and some agents react very personally to offers. Of course, if you’re the seller and the offer is 30% lower than list price, the offer may seem like a personal insult.However I can honestly say that in all the years I’ve never heard a buyer or seller actually say their goal was to upset the other side by making a “low ball offer”. The best way to the “sting out of a low offer” is to take the offer as a “knock on the door” which requires a some type of response or “counter offer” from you. Responses on price can range from full price counter- which sends a signal that if the other party is serious they need to make a better offer. Or the counter offer could be as simple as a slight reduction in price. There are a number of ways of responding and the bottom line is you need to respond and keep negotiating with the goal of coming to an agreement.
Many times buyers and sellers can agree on price but hit a road block when it comes to occupancy, personal property and other miscellaneous things. As for personal items, I’m not an attorney, but I strongly discourage buyers or sellers from adding pool tables, lawn mowers, flat screen tv’s and surround sound systems (and whatever else you can think of) to the contract. This is a real estate deal and appraisers don’t like handling personal property and many deals go south because the buyer or seller gets so attached to $400 item and forgets the bigger goal of buying the $260,000 item. Problems with occupancy, closing dates, inspections are usually resolved with simple communications. Sellers who cannot vacate at closing because of: arrival of new baby, school schedules, next house isn’t built yet- should include a viable alternative in the counter offer. Staying in the house after closing rent free for 90 days is not a viable counter offer! However setting a time frame and paying to stay usually is a win win for both sides- so think about presenting alternatives that might work for both parties.
And one final thought about offers and counter offers- and I need to disclose I’m from the old school- any changes to contract is a counter offer. Sometimes I hear that a contract has been accepted but when the actual contract arrives, the dates, items of personal property or a request for a home warranty have been changed. That’s not an accepted contract- that’s a counter offer and the other party needs to initial/sign and date it before it’s a done deal.
Many years ago (in another life) I had the opportunity to take several courses on negotiation and the most important thing I learned was that the best negotiations happen when neither party walks away thinking they got everything they wanted- in short -no slam dunks.
Offers and counter offers in real estate are really all about give and take.
Now I’m wondering, if I knew then what I know now, if years ago I could have countered and made a better deal with the guy behind the candy counter? What do you think?
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Winter Mittens and Scarves for Your Home
January 18th, 2012 categories: For Sellers, Informational
The see-saw weather in greater Cincinnati has lots of local property owners facing problems with flooding, malfunctioning furnaces, sticky garage doors and smoking fireplaces!
Yesterday’s high winds which blew our grill across the deck was a good reminder that to recheck the house for winter…which most of us forget to do when it’s 60 degrees outside. The CDC has a page dedicated to home winterizing with great information and links.
It’s time to drag out the mittens and scarves for your property!
Our property check-up started on Monday with the routine visit by HPS- the heating company we have used for decades. Like many absent minded home owners, I have found it easier to contract for routine maintenance every 6 months to keep our all electric system in tip-top shape. Filters are changed and the system is checked inside and out for to ensure optimum heating (and cooling).
Next is the fireplace. As I mentioned we’re an all electric house-built after the Jimmy Carter scare that the world would run out of natural gas- so we have a propane powered fireplace and after several laughable efforts to fire up the system yesterday…I think it’s time to have the plumber check out all the piping for leaks. The pilot flame finally ignited-but I’d rather be cautious than come home and smell propane.
All the rain has also prompted another look at the gutters to make sure the last leaves that dropped before Christmas off the Bradford Pear tree have blown away and aren’t clogging downspouts. And speaking of downspouts-make sure to double check the high winds didn’t blow the end pieces off. Water pouring down the spout and straight the foundation is a great way to start water problems in the lower level. And speaking of basements- test your sump pump.
The last thing you want in the winter is for your electric garage doors to fail. Many owners forget to follow manufacturer’s directions about lubricating the tracks and moving parts. And while you’re checking doors-take a look at all the doors leading to the outside. Is the weather stripping in place? Are the locks functioning- in case you get locked out of your garage.
In short- the blast of winter weather is a good reminder to “batten down the hatches” before you have problems inside or outside your property.
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Are You Trying to Sell a Home in Greater Cincinnati?
January 12th, 2012 categories: For Sellers, Sales
Sold, sold and sold.
According to the Cincy MLS overall sales volume was down when comparing 2010 to 2011. However the news is not that bad- remember in 2011 we didn’t have any government incentive programs which captured lots of buyers in 2010. Also, while mortgage rates are still very low, securing a mortgage is still somewhat difficult.
The gross sales dollar volume in Clermont and Warren Counties was almost equal to 2010 levels and both counties actually sold a few more units in 2011.
| 2010 | 2011 | |||
|---|---|---|---|---|
| # Units | Avg Sales Price | # Units | Avg Sales Price | |
| Butler | 2956 | $147,038 | 2901 | $140,803 |
| Clermont | 1645 | $167,214 | 1650 + | $161,750 |
| Hamilton | 6836 | $164,686 | 6635 | $157,763 |
| Warren | 1959 | $217,718 | 2005 + | $211,895 |
Overall the number of showings continues to creep up and buyers are actually making offers. The weather, while delightful, is actually hurting real estate in Cincinnati- because people are out golfing, shopping and enjoying the outdoors instead of feeling cramped in their current home.
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