2 Key Components to Selling Your Home
February 12th, 2008 categories: Real Estate News, Real Estate Selling, Relocation
Sellers are calling with questions about the current market and how to price their homes.
There are 2 components to pricing and your agent will review all the details with you.
The one you are most familiar with is the CMA (Competitive Market Analysis) a canned report available from the MLS (Multiple Listing Service) which provides details about homes currently on the market (actives), homes with contracts that have not closed (pendings), closed deals and usually expired listings- houses on the market that did not sell.
The CMA is only one component used to correctly price your property. The second, and I feel the most important component is reviewing the absorption rate.
Absorption Rate is a calculation of how long it will take for all the homes to sell (absorbed) based on the number of properties available divided by the number sold in the last twelve months. The number is important to sellers because you want to price your house correctly in order to attract the next buyer in the marketplace.
The current absorption rate (in months):
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Hamilton County 8.5
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Clermont County 8.3
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Butler County 7.75
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Warren County 8.45
The next time you walk into the grocery store and try to imagine your house as a product on the shelf!
Think about how would you price and position your “product” to grab the buyer’s eye?
Call or send an email if you need detailed on absorption rates for your neighborhood.
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Greater Cincinnati Multiple Listing Service Stats
February 5th, 2008 categories: Real Estate Buying, Real Estate News, Real Estate Selling, Relocation
Hot off the press- read all about it!
Let’s look at real numbers for the greater Cincinnati real estate market comparing January, 2007 to January, 2008.
| January 2007 | January 2008 | % Change | |
| Active Inventory | 14,634 | 17,329 | 18% |
| Pending Inventory | 2,161 | 2,262 | 5% |
| Closings | 1,370 | 1,071 | -22% |
(Per the greater Cincinnati Multiple Listing Service for single family and condos)
While the media will probably focus on the increase in Active Inventory and the decrease in the number of Closings- take a look at the pendings. There is a slight uptick in the number indicating an increase in purchase activity.
This is no surprise with mortgage interest rates at a historic low, cautious buyers are tip toeing back into the market.
Low mortgage rates + lower prices on homes = great time to buy (and sell).
If you need more information to make an informed decision- ask me.
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3 Reasons to Shop for Homes in Fairfield and Fairfield Township, Ohio
January 25th, 2008 categories: Fairfield, Ohio, Real Estate Buying, Real Estate News, Relocation
The housing market in Fairfield and Fairfield Township is loaded with affordable housing values for smart buyers.
First, let’s take a look at the local market for the last 5 years:
Fairfield, Ohio average sale price for single family homes and condos (data obtained from the Greater Cincinnati MLS):
2003 $133,842
2004 $142,462
2005 $148,048
2006 $146,878
2007 $137,141
Fairfield Township, Ohio average sale price for single family homes and condos (data obtained from the Greater Cincinnati MLS):
2003 $165,549
2004 $170,635
2005 $177,606
2006 $178,257
2007 $174,407
Appreciation on property in Fairfield from 2003 to 2007 and 2.5%and for the same period in Fairfield Township 5.4%. Utilizing the same data the newspapers or TV blurbs on real estate- the headline would be “The Sky is Falling on Real Estate” News has always followed the “If It Bleeds-It Leads” mentality and savvy buyers are ignoring the headlines to grab up great deals.
Currently there are 252 single family homes and condos for sale in Fairfield and 147 in Fairfield Township so you need to find the right house and begin to ask questions.
- How many days on the market?
- How many are new construction vs. resale (in Fairfield 25 new construction and 22 in Fairfield Township)
- Where are the sellers going?
- What are homes actually selling for in this neighborhood or area?
- Mortgage Smarts
How many days on the market-not only the current listing- but total days on market. Your agent is able to print a property history from the greater Cincinnati MLS. A long time on the market may indicate an unwillingness to negotiate or it may reflect overpricing early in the process and the owners are finally in step with the market. Homes that have been on the market for just a few days may not be quite as negotiable as ones on the market for several months.
Where are the sellers going- motivated sellers are more willing to negotiate. A seller who has already closed on their next property, carrying two mortgages should be more motivated than a seller who is waiting to sell before purchasing the next property.
Many buyers make the mistake of grossly under bidding for a home (low low ball) and ultimately pay more or lose the property because the home owner was insulted. Your agent will provide you with a CMA (Competitive Market Analysis) of the neighborhood. The CMA should include current listing, sold pendings (sold not closed), closed and expired listings. A good CMA should contain current data- not sales from more than 6 months. Given the data- is your offer within the range for the neighborhood? For example homes are selling between $165,000 - $185,000 - as the seller how would you respond to an offer of $140,000?
Finally, make sure you are dealing with a reputable lender and you have a handle on mortgage rates, points and closing costs. The best buyer has their loan approved, pending a purchase contract and appraisal. The buyer with “loan in hand” glitters in the eyes of sellers. If you have not secured a loan, the minimum you need is a letter from a lender clarifying your status as a borrower. The more detailed (credit file reviewed, money for the down payment and closing) the lender’s letter the better you look to the sellers.
Do your homework! Select the right home or condo, write a balanced purchase contract and your home in Fairfield Township or Fairfield.
If you need my assistance, I would be happy to assist you- just call or send an email.
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3 Things You Need to Know About Building a Home
January 24th, 2008 categories: Real Estate Buying, Relocation
Trying to make a major home buying decision? Do you buy a used home or build a new home?
You have been house hunting for awhile and the thought of moving into a “used home” is turning you off? Your house hunting efforts may have turned to new construction. There is something so intriguing about being the first to live
in a home- it’s new, it’s clean and hopefully, all the colors match your furnishings.
Whether you are building a multi million dollar palace or contracting to build in a local subdivision, there are 3 things you need to know:
1. Know your builder
2. Know if your personality is suited to building
3. Know your budget
Check out the builder, don’t hesitate to ask for references, check with the Better Business Bureau and drive around the neighborhood and talk to the neighbors. Many (but not all) require substantial down-payments and you need to do your research prior to signing on the dotted line. You are probably wondering why I would even suggest “due diligence” since it is so obvious-yet you would be amazed at how many buyers sign first and discover problems later.
Is you builder a member of the Home Builders Association? If yes, they have agreed to abide to a set of industry standards for construction and repairs.
Not everybody is suited to building a new home. Delays, construction issues, changing plans as the home progresses, cabinets not quite the shade you ordered often leaves some buyers regretting they ever began the project. On the other hand, if you can handle a moment or two (or three or four)of stress, building a home can be worth the effort. We have built twice and I would build again in a heartbeat. (and yes we did encounter some stressful moments)
Budgeting is critical, even if you have signed to build a home in a subdivision. The normal buyer is usually not happy with the either the light fixtures, the carpet or the appliances. These add-ons can significantly increase the final cost. Take a close look at the fixtures, carpet/padding, appliances, furnace capacity and so on. Make sure you spend your building dollars on items that are very expensive to upgrade later. You can always upgrade carpet or light fixtures after a few years, it is much more difficult to add a few feet to the family room or additional space to the garage.
Using common sense, doing your research and having patience are all part of building a new home. If you have some questions or concerns, give me a call or send an email.
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8 Easy Steps for Savvy Real Estate Buyers in Greater Cincinnati, West Chester, Mason and Fairfield Ohio
January 14th, 2008 categories: Real Estate Buying, Relocation
So many homes/condos to preview!
So many friends offering different advice on how to buy a home…where to buy…what agent to use…what agent not to use!
So many family members wanting to chime in on your decision!
Sound familiar?
You are not alone, the home buying process can be mind boggling and stressful.
The sheer volume and speed of information can be overwhelming. It is best for everybody if the buyer is savvy about the home buying process and your realtor will help you through ins-and-outs. My approach is called the savvy buyer game plan:
If you have decided to work with a realtor - work with only one agent and cut down on aggravation for everybody.
By all means interview agents, ask for referrals from friends and family then make up your own mind on the right agent for you. A full-time licensed real estate agent who is knowledgeable in your marketplace can provide invaluable help and guidance. We all have access to the same market information (Multiple Listing Service MLS) and working with multiple agents within the same marketplace is redundant and a waste of time for everybody.
Occasionally the best laid plans go wrong and you find yourself dissatisfied with your agent and decide to part company. Tell them about your decision and move on.
If money were no object what type of home would you buy?
Make a list of features you need and a “wish” list. Focus on needs first and then use your “wish” list to narrow down the search. Step back, take a breath and review your list. There may be features you think you can live without (now) but will you kick yourself in a year. Best example extra bathroom, closet or storage space…
Work with a reputable lender.
If 3 lenders offer you basically the same rate and closing costs (minor variations) and a 4th lender offers you a significantlybetter rate and lower closing costs- raise up your “is this real” antennae and compare apples to apples. Don’t let anybody talk you into a program which allows to borrow for more than you afford/planned- stick to your budget.
Get an approved loan prior to house hunting.
Serious buyers -even in the current buyer’s market- have their loan “approved” pending a contract and appraisal. Savvy buyers want to cut down on negotiating- a good offer backed with an approved loan- significantly reduces seller anxiety about your financial qualifications. If you are focused on purchasing a home, full loan approval prior to shopping is the easiest step.
Shop Smart!
Going to move again soon? Don’t build a home in a new subdivision with 300 lots sitting empty. Do you like the grassy acreage behind your new dream home- investigate zoning to ensure it cannot be sold to the local school district or subdivided for 100 homes. My favorite in a neighborhood- cars parked on the neighbor’s front lawn, boats and trailers parked all over- what type of codes are in place to protect neighborhood value? Good resale value is about thinking ahead and looking at the “big” neighborhood picture.
Write and present a decent offer.
Your agent should provide a CMA (Competitive Market Analysis) for any property you are even thinking about. The CMA should contain current sales, active listings, pendings and expired listings as well as sale price for any property sold privately (Not in MLS system). Unless you are purchasing in a very unique neighborhood, the data has to be no older than 6 months- preferably within 3 months. Review the data with your agent and make a decent offer. I cannot count the times buyers have paid more for a property because the first offer was way below market. Don’t insult the sellers.
Hire a professional inspector (professional = ASHI Certified).
You have an accepted contract- don’t wait until the last minute to schedule the inspection. By scheduling inspection(s) as soon as possible allows time to bring in other professionals within the contract time-frame. For example the original inspector may indicate the need for a professional HVAC service and inspection on the furnace. If you waited until the last day of the inspection period, you will be stressing to secure the HVAC appointment.
Purchase the home owner’s Title Insurance policy.
In our marketplace the buyer purchases title insurance which covers only the lender and, at the same time, they are offered reduced price on the policy to cover the owner. Purchase the policy to protect your investment. It is a one time expense and can protect you against a myriad of problems down the road.
Relax and remember Murphy’s Law- anything that can go wrong..will go wrong.
Murphy’s law may come into play- but don’t let the “bumps in the road” derail your purchase.
Your preparation and agent’s guidance cannot guarantee a stress free transaction, however knowing how to alleviate some of the problems will smooth the path for you. Remember each deal is different -so be prepared, savvy buyers know when to walk away from a no win deal and when to raise their offer to secure the home of their dreams.
Good luck. If you have any questions or need help call or send an email.
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