New Numbers for a New Year!

Hello all!  It’s been crazy- busy at our home, and I’m sure at yours too.  I hate to be a cliché and write about looking back, and looking forward, but hey, it’s January of a new year. What can I say?

Ok. I promise.  I’ll keep my philosophical ranting, and resolution making and breaking discussions, off this page, and stick to some good old fashioned MLS market data to keep you up to date.

The following data is for single family homes only, Butler, Warren, Hamilton, and Clermont County. 

This data is compiled from The Greater Cincinnati Multiple Listing Service, as of about 10:30 a.m. or so today.
Once again, a “Distressed Property” is a bank owned or government owned foreclosed on property, or a property still owned by a consumer, but requiring bank approval for a “short sale”.

Obviously, the numbers speak to the issues we have all experienced in the local real estate market.  I want to point out that, while indeed, there was an explosion of distressed properties for sale over the last few years, the MLS wasn’t as strict or accurate “pre-market correction” as it is currently.  In other words, we didn’t keep track as well of short sales.  Many real estate agents didn’t even know what a short sale was until the last couple of years.  I remember a conversation in early 2007 with 25 year veteran about my fear that we would be seeing more and more short sales in the coming years.  Her response…”what’s a short sale?”  So there you have it.

Here are some current numbers:

2010 To Date as of 10:30 a.m. January 4, 2010

One thing that jumped out at me here is that while the average list price in the 4 main counties of Greater Cincinnati is $240,144, the average list price of the home under contract, waiting to close, is significantly lower: $157,854.  That tells me that the lower priced “bargains” continue to fuel this market.  It will be interesting, of course, to see what this next year brings.  The good news is that if this is your snapshot in time to be entering the real estate market as a buyer, there is still plenty of good reason to do so: low interest rates, tax credits, good inventory, and you still have the upper hand in most markets and price points.

Sellers:  don’t be discouraged. If this is your snapshot in time to put your home on the market,  just be sure to hire the team of agents with a proven track record, good marketing ideas, and a head for numbers ( hint, hint).  Priced well to be the “next best value”, your home will sell.    The RealCincy Group is here to offer advice and keep you up to date on the competition. In Ohio & Kentucky, we can help.  With our OUTSTANDING marketing and trend watching, we’ll get your home sold

More Cincinnati real estate information can be found at RealCincy.com

So many potential buyers will delay their dreams!
• Worried that they will commit costly errors that cause them to over pay for the home they want.
• Worried about making a final decision. Those buyers put at risk loosing their home to another buyer, while they are “still thinking”. Lost to a buyer that was prepared and ready to make a decision when he viewed the right home.
• Worried about making a poor, regretful decision by selecting the wrong home for their needs and budget.

Let’s take a look at Ten Traps and Trips of the home buying process. Let’s get educated on the terms and procedures, and take the mystery out of the process.  You’ll cut costs, and feel confident moving forward when you’ve found “the one”!

1. Pulling Numbers From Air – What’s a good price to offer? Where should you start the bidding on the home you want?  Is the seller “dreaming” with the asking price, or does it the price represent a seller that has priced well for the current market?  If you haven’t looked at the other homes on the market, priced similarly, you won’t recognize a good price when you see it. That’s good information. Next, you need to see what similar homes have sold for in the recent past. Not two years ago, not last year…..recently.  If there are no recent “apples to apples” comparison, look at last years’s price, and adjust to the current market. Without obtaining the knowledge of “market value”, you could easily offer too much, or fail to make a competitive offer, an offer too low, on a home that represents an excellent value!!
2. Right House, Wrong Reason – So, what type of home do you want? Seems like a simple question doesn’t it? The answer can be a bit more complicated than you think. Many buyers find themselves overwhelmed by the options, and swept up in the excitement. Not thinking this through can push you into owning a home too far from the grandparents, or with an hour commute to the office. A fantastic kitchen with an hour drive to the office may or may not be worth it in the long run. Only you can decide.   Remember, no home is perfect, and nearly everyone ends up with some compromises. That’s fine. But take the time to analyze the “must haves”, and “wants” of your new home. That way, you’ll know it when you see it.
3. Owner’s Policy of Title Insurance – Take the time to explore the option of obtaining an Owner’s Policy of Title Insurance. Different states, and different areas within an individual state, can vary on who, by “regional norm” pays for an Owner’s Policy to a buyer.  Nevertheless, as a homeowner, you need to know that, while generally rare, problems with title from before you owned the home can come to the surface later.  Lost heirs, forgeries, misfiled documents and other mistakes can cost you a bundle later as you fight to maintain control of ownership of your home. The cost, payable at closing, is a one time fee, and can save you headaches, heartbreak, and money later, if needed.
4. Inspect, and Inspect Again – Sellers are required to disclose information about the home for the potential buyer to review. But you have to wonder if everything relevant makes it on to the disclosure. Sellers don’t mean to be intentionally untruthful, but, they can forget.  Many homeowners just get used to, or learn to live with, a defect that they no longer consider a defect, but a “quirk”.  Be sure to hire an independent inspector who will provide you his findings in writing. Keeping in mind that no home is perfect, your inspector should be qualified to point out to you the difference between problems that need corrected, and maintenance chores for the “honey-do” list that you can tend to after you own the home. Then, after any requested repairs are made, re-inspect, prior to closing. Ask your agent how to ensure that you can review the home, prior to closing, to insure that the repairs are made, professionally, and in a “workmanship like manner”. Depending on the items needing attention, this may be as simple as scheduling a visit a couple of days before closing, or sending the inspector or other professional to the home to verify the work has been performed properly. You can save yourself a bundle of headaches with this one piece of advice.
5. Mortgage Pre-Approval. An Absolute Must – Don’t even look at homes until you have a loan pre-approval. Realtors enjoy the process of taking “ready to go” buyers to homes. Home shopping can be enjoyable.  But, if you don’t have a loan in place, you can’t enjoy the process, knowing that you may or may not qualify for “the one” when you see it. Shopping with a loan in place will give you the confidence to move forward when you do find the home of your dreams.
6. Not Getting a Home Warranty- Sellers will often offer a home warranty to provide the buyer of their home peace of mind, should there be any “surprise problems” with appliances or the home’s operating systems for the first year after the title transfer.  Some sellers do not understand the value of meeting a buyer’s request for a warranty.  If the seller doesn’t want to provide a warranty, the buyer can most certainly buy it themselves. Things break, and even the best home inspector can’t make predictions on when an appliance may quit. Warranty plans and coverage vary, but generally speaking there is a $50 – $100 deductible per occurrence and the warranties can cost approximately $400 – $500. The deductible is certainly less than replacing a hot water heater or dishwasher that worked fine at closing,  then breaks a couple of months after buying the home. Warranties can be renewed yearly.
7. Missing the Contract Deadlines – As a buyer, you need to be aware of the contract dates and deadlines.  Be sure to provide your proof of pre-approval and loan commitment on time. Be sure to have your home inspection, and requests for repair to the seller, delivered on schedule. Failing to do so could cost you money and your home by voiding the contract.
8. Survey Issues – As part of your purchase contract, be sure that there is a provision for, at minimum, a lender’s survey.  This survey will ensure that there are no encroachments on “your” new property.  Larger pieces of land, unmarked, need a marked survey so that you know exactly where to find the boundaries. Be sure you know where your lot ends, and the neighbor’s begin.
9. Uncover the “Hidden Costs” of your loan – A good mortgage consultant will go over all the costs of your loan….large and small. Your lender will provide you with a Good Faith Estimate, outlining all the costs associated with the closing process.  Be sure to review the costs, and make sure no unexplained and unexpected fees are sneaking into your settlement costs.  Ask questions if you don’t know why you are paying a “disbursement charge” or what “EPA Endorsement” means. There is a good reason, but it’s ok to ask if you don’t know why.
10. Closings are Final. Know What you are Signing – During the closing, the title company representative or attorney conducting the closing will review the paperwork with you. Be sure to obtain a copy of all documents that you sign. At closing, be sure to review the documents in front of you, insuring that what you are signing is in line with your understanding of your loan (FHA, Conventional, Fixed, or Adjustable Rate) and your quoted interest rate.  Your mortgage consultant should be available to answer any questions. At minimum, she should be a phone call away. You should receive your settlement statement to review 24 hours prior to closing. You and your realtor should each review the statement for accuracy.

Now, you’re ready to go find your dream home!

More Cincinnati real estate information can be found at RealCincy.com

“Too much time on her hands” “Needs to get a  life” “Nostradamus of Real Estate” “Real Estate Genius”
Ok, the first two are definitely correct. I just like the last two. Anyway, I tried to tell ya’. Home prices are coming down. Still.

The members of The RealCincy Group have spent copious amounts  of time over  the last 2 – 3 years, meeting with sellers, and attempting to explain why the sellers need to price competitively, and skip the “let’s just try” angle if they are serious. We have counseled and consoled, while explaining global economics, stock market volatility, mortgage backed securities, inflated second mortgage appraisals. Wow…we ARE boring. Nevertheless, home sellers are just having a hard time understanding that the price that we suggest will net them a quicker sale, and will save them money in the long run.  

It has taken a banking “thump on the head”, called the “Global Credit Crisis” to get home sellers to understand that the home selling market is tight…..for the neighbors.  Soon to be released this month, is a report from Zillow’s Q3 Real Estate Market Report.  This report states that 49% of home owners believe that their own home’s value has increased, or at least stayed the same, over this last year! Really?? Still?

49% of homeowners have a bad, serious case of “Not My House” Syndrome.

Nationally, over 74% of homes have decreased in value.  Right here in Greater Cincinnati, I just shared with you the other day that there was a $12,162 drop in average sales price in the last 6 months, from this same time last year, with 1378 fewer homes sold.  That information was right out of the Greater Cincinnati Multiple Listing Service.

One couple I met with about 4 months ago had a sad, serious case of “Not My House” Syndrome. Everything about the listing appointment was stellar until the “ So, about what do you think we will sell for?” question was put out there. Ok, I’ve done this before. I have numbers, pretty pictures, stats, and references. I know what I’m doing. But Whew! Did the tone of that meeting drastically change!

Nice, kind people, but they got “the syndrome” bad. They listed, 4 months ago, $50,000 over what I suggested. Nine price drops later (fire sale anyone?),  they just hit a listing price lower than what I had suggested that they would anticipate selling. Ouch. Now, I don’t have a crystal ball, but experience tells me that  if they had just priced closer to that price in the first place, they wouldn’t be offering a buyer agent vacation package, and taking a whipping on the sales price too.

I confess. I do like to be “right”. Ask Randy, poor thing.  It’s part of my first born, type A- personality. But I really do care about people and their investment too. I just hate seeing people taking a beating like this because of poor advice. We are where we are, economically. We can’t change this. But we can minimize the damage.

“Ok. So what’s the point?”  I’m getting there.  In this market, you can not afford to have “Not My House” Syndrome.  It’s time to swallow the cure. Here is the cure: You need to ask questions. Review recent sales. Even sales from one year ago need to be looked at carefully. Objectively look at how the numbers are trending. You are not in the real estate business with access to the daily numbers so you don’t have to be an expert. But your agent does. Go with someone a little “nerd-y” that studies those numbers, and can interpret the data for you.

You probably have good memories of your life in your home. Spoiler alert! That has zero value to the next buyer. However, by staging your home, and presenting your home to market in amazing condition, you do tell the potential buyers that you have loved and cared for your home. That does have value!  Ask your agent how he or she generates buyers. Most agents do not have a clear plan for finding the precious few buyers available. I’m bringing it up, so you know we do.

When it’s time to discuss the anticipated sales price range, and suggested list price, does your agent wiggle in her chair? Or does your agent have a clear picture of the road ahead, and is ready to show you what you need to know to make a good pricing decision? Whether it’s us, or someone else, don’t just go with the highest “bidder”, or the agent that says “sure, we’ll try your price”. That will cost you money.

More Cincinnati real estate information can be found at RealCincy.com

Try as you may, we know it’s difficult to take away the emotion, and insert the practical. That is where choosing a good, experienced realtor, whose advice you will carefully consider, will save you thousands.

Let’s talk for a minute about the massive savings you may reap by having a pre-listing home inspection. We recommend it to all sellers, and strangely enough, no one has ever followed through with that advice!! The common thought is that a buyer will have their own inspections, and we’ll just deal with “whatever” at that time.

This is a true and recent story.  Indulge me for a minute, by letting me tell you about a seller that probably lost several thousand dollars on a home that was listed for $274,900.

This summer, I represented a family shopping in Anderson Township, in the $225,000 – $280,000 price range. We decide on a beautifully kept home, list price $274,900.  The listing agent did a great job of counseling the sellers on listing price. In the market we all miss, pre 2006, this home would easily be a $290,000’s home.

We selected this home, in part, because of the gorgeous, remodeled kitchen, with stainless steel appliances, new cabinets, and quartz countertops. The yard is manicured to perfection. The baths are updated, and the care the homeowners gave to the 31 year old home during the 20 years they occupied the home is evident. 

We struck our best deal, at $263,000. The sellers indicated that, at this price, and due to the maintenance and updating that they performed over the last 20 years, this was as close to “as is” as they were willing to go. No “nickel and dime” inspection requests. Agreed!  My buyers are quite reasonable, and very happy with this price. The home inspection will be for material defects only (which really is the spirit and intent of inspections, but we’ll talk more about that later)

Anyway, long story shortened, the 14 year old roof is shot, per the inspector. This is verified by two independent roofers that said that despite the stated age of 14 years, the shingles were not installed with proper ventilation. Indeed, the shingles are just “cooking” on the roof. To add salt to the wound, the radon report was also high.

So…..a very reasonable and kind (on my buyer’s part) negotiated $1800 price reduction to $ $261,200 and a $700 radon reduction bill later, the sellers lost another $2500. 

If the sellers had preformed a pre-listing inspection, they would have known about the roof and radon. They could have replaced the roof and mitigated the radon. At that point, while they may have spent about $7000 – $8000 that they may not have wanted to spend prior to selling the home, they could have more firmly and reasonably held to a $275,000 sales price. Why?  A couple of reasons:  The roof is brand new, and the buyer would not have to spend his money on a radon test, because it was already complete. There was precious little left to discuss as a result of the inspection, so…..a TRUE $275,000 home.
Now, while this worked out well for my buyers, it didn’t work out so well for the sellers. And, if you are reading this, you are probably considering selling.

Yes, your buyer may have their own inspection. That’s fine. But you will have already negated many of the “nickel and dime” items, and cured any major problems.  The pre-listing inspection, coupled with a good, solid market value list price, will significantly strengthen your position.

More Cincinnati real estate information can be found at RealCincy.com

Life is good for first time home buyers who have good credit and a down payment.First time home buyers now represent about 46% of new and existing homes buyers according to HouseHunt’s “Current Market Conditions” random survey of member agents.   This is 7 points higher than the fourth quarter of 2007.   This makes sense, because first time home buyers do not have to sell a home to buy a home.  In addition, price declines and lower interest rates have made homes more affordable. 

Life is ok for Cincinnati home sellers when their home is properly priced (yes a lower price than just last year) and it is in good condition.  In Cincinnati we continue to see homes that are in very good condition with a good price sell quickly.   It is a buyers market, but buyers are buying homes.  

Life is rough for new home builders and for sellers who can not afford to reduce their price.

The good news in the Cincinnati Real Estate market is the inventory of homes for sale continues to drop. In April of 2007 there were 16,347 homes for sale in Cincinnati.  In April 2008 there were 15,519 homes for sale in Cincinnati.  So there was a 5% drop in the number of homes for sale.  This is a good trend and it will hopefully lead us into the market bottom. Many sellers are just pulling their listings from the market and waiting it out.

The bad news is the number of homes sold also continues to drop.   January to April of 2007 there were 1,968 homes sold in the Cincinnati market.   January to April of 2008 the number of homes sold in Cincinnati dropped to 1,635.  This is a 16.9% drop in the number of homes sold – ouch.   There are many reasons why there are fewer buyers.   Common reasons include:

• Buyers can’t sell their existing home to buy a new home
• Buyers are waiting till the market turns around.  Human nature is to sell when the market goes down and buy when the market is going up.   Yup – not very smart, but it is the way the world works.
• Credit is still tight or non-existent for people with poor credit and no down payment
• Foreclosures continue to weigh down the market

I will post May’s numbers as soon as I get them.

All the Cincinnati Real Estate market number are from the Greater Cincinnati Multiple Listing Service Monthly and Yearly Updates.

More Cincinnati real estate information can be found at RealCincy.com

The U.S. Green Building Council has released 45 ideas we all can use to go a little greener.   Here are the the top ideas I am going to try and do:

1. Lint – Yes the lint in your dryer can build up and waste energy.  Clean out the lint filter every time you use the dryer.
2. Manual Labor – Little things can add up.    Why not use a manual can opener or a whisk instead of an electric mixer.  What about a good old broom instead of the fancy shark.
3. Good Day Sunshine – On hot days, close the window coverings on the south and west sides to keep your home cool.  In cooler days, open the same window coverings.  
4. Washing Machine – You can save $30 to $40 per year in water heating costs by washing and rinsing your clothes in cold water.  Also, wash with full loads, not half empty loads.  I have tried this and the clothes look just as clean when washed in cold water.  
5. Put your Computer to Sleep – Update your computer settings so it goes into sleep mode when not used.  This can save from $25 to $50 a year.
6. Solar-Powered Attic fans – The name says it all!  Actually, any powered attic fan will save on your cooling bill!  

I am also looking into saving rain water from my roof to use on the lawn.  I will let you know how that experiment goes.   Our team is working with a construction contractor to provide our home buyers and sellers with a green checklist.  Look for a post on this topic later this spring.

Some of the ideas took just seconds to implement, others are a little harder to do.  We can mail you the 45 Ways to Green the Not-So-New House Report.  Just send an email to info@realcincy.com requesting the 45 Ways to Green the No-So-New House and we will send you the report right away!

You can find more green ideas on the energy star web site.  Energy Star is the US Government organization to help us save energy.   They have ratings on appliances and home improvements.  Check out the site, you may learn that buying a new Deep Freeze will quickly pay for itself!

More Cincinnati real estate information can be found at RealCincy.com

Its vast rotunda echoes with the sobs of families sending sons and brothers to war, the cheers of fans greeting world champion athletes, presidential candidates and Hollywood stars, the weary sighs of traveling salesmen returning home, and the hurried footsteps of tourists.

The building’s curvy outline and enormous half-dome made it a beacon to Fritz Steiner, dean of the School of Architecture at the University of Texas Austin and a University of Cincinnati graduate.

“It is the apex of railroad terminals, like the great railroad stations of Europe,” he says.

If it had not been for World War II, Union Terminal would have been obsolete when it was dedicated on March 31, 1933. It brought seven railroad companies together under one roof but was one of the last major train stations to be constructed in the United States. Other cities had built their united stations decades earlier.

By the time the $41 million project – which included 22 structures and the Western Hills viaduct under its umbrella – was complete, passenger rail travel had peaked in the country.

But Union Terminal survived – barely. Passenger trains dropped from 216 a day to two, and passenger travel was halted in 1972.

The next year, the concourse was razed and in an ironic twist, 14 of its mosaic murals were moved across the river to the airport.

The city of Cincinnati bought the terminal from the railroad companies in 1975. It paid $1 for the building and $1 million for the surrounding 15 acres.

A science center moved in and out.

A shopping mall moved in and out.

Eventually, the rotunda would be filled again with crowds. A bond levy was passed in 1986 to preserve it as a museum site. The Cincinnati Museum of Natural History and Cincinnati Historical Society announced they were moving to the terminal, and it opened in November 1990 as the Cincinnati Museum Center at Union Terminal.

More Cincinnati real estate information can be found at RealCincy.com