More Mortgage Changes!

Having just missed Halloween, I may be a little late to try to scare you with a horror story or two. But hey! There’s never a moment when a good story to shake things up isn’t welcome.  Today, I wanted to share a potential trend that a few of us have experienced in the “wonderful world of real estate”: the lenders becoming involved in the home inspection negotiation process. If that doesn’t scare the living daylights out of you, maybe it should.

At the risk of redundancy, I’ll say it again. Home sellers REALLY need to have a home inspection prior to putting their home on the market. The little quirks and irks you’ve lived with for the last 5 – 15 years will show up on the inspection.  I know you don’t think the way the dryer vent exits the house right next to the outside air condition unit is an issue, but your buyer will. It’s been that way since the house was built in 1983. Doesn’t matter. It will show up on the report. 

I have already gone on about how this inspection portion of the purchase process can spook a nervous buyer and irk a seller who feels as though he has gone as low as he can go in this market, and he can’t be bothered with $300 roof repairs, $500 worth of broken window seals and a fireplace cap that needs replaced.  Knowing this information up front and having already made the necessary repairs, puts this seller in better negotiating position. And in this “buyer’s market”, wouldn’t you, as a home seller, want to find SOME advantageous position? And buyers, wouldn’t you like to buy a well maintained home that isn’t fraught with “surprise” issues? Just buy the home, bring your toothbrush, and move in!

A couple of lenders in the area have begun to ask for a copy of the home inspection summary page, and the addendum between buyer and seller outlining how any repairs will be handled.  One lender insisted on a physical re-inspection of the property prior to closing on what most of us would consider a “typical” FHA purchase.  Because the majority of home buyers do not care to pay for a 2nd home inspection, generally speaking, a walk-through prior to closing and collecting receipts for the work performed will insure compliance of the addendum. This issue arose: who pays for the inspection, and who is now the inspector’s client?

Another problem to consider is this:  the lenders are now telling buyers they want a “sign off” on the repairs, a statement of satisfaction with the work performed, well in advance of our contractual opportunity to complete our  “…within  48 hours prior to closing…” examination of the property. Generally about 5 days prior to closing so the paperwork can be processed in time for the appointed closing date.  Moving is a busy time, and most sellers wait until the last minute to complete repairs, especially if the luxury of a few days of occupancy after closing is negotiated into the contract.  We need to know that this is a possibility, and amend the wording of our purchase contract and / or addendum, to insure the buyers can comfortably sign off on repairs that they have had the opportunity to inspect. In other words: Sellers be ready because my buyers and I are coming over sooner!

Not to be an alarmist, but I am concerned a bit that if underwriters or loan processors 4 states away review an inspection report, and the agreement between buyer and seller on certain repairs, then decide they don’t like the agreement made between buyer and seller, are they now opening up the opportunity to insert their opinion on the resolution?  I don’t know. That is a little scary to me.  If your eyes are rolling at me right now, I understand. But loan processing is a very different scenario than it has been in the past.  I’ve had this discussion with agents and loan officers who all wonder if this is a passing fad, or harbinger of even more changes to come. 

Personally, I think much of this issue could be resolved by sellers taking the bull by the horns and just getting their homes in order prior to putting them on the market.  Make sure the GFCI plugs are where they need to be. Have a fireplace? Get it cleaned and inspected. Make sure it’s been deemed safe to use by a pro. Clean the gutters and tighten the wobbly ceiling fans. I know. Those are not “material defects”, but trust me on this one: they will be on the report.  Have the HVAC cleaned and inspected. It will show up on the report if you don’t have receipts to show it’s been done.

Do you have a list of things to do prior to closing? Please complete those items ASAP.  Not all buyers have their “backs against the wall” and will be certainly in a position to delay closing until they are satisfied that all work has been completed as contractually agreed.  A delay in closing may not be in your best interest either, so fix those windows, and clean those gutters because we are coming over to re-inspect!

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

You Must Sell What You Have. Don’t Try to Sell Your Vision

When meeting with homeowners getting ready to put their home on the market, it goes without saying that we are going to discuss the condition of the home as it relates to salability and market value. Unfortunately, too many homeowners are still putting homes on the market before they are “market ready”.  Other homeowners have simply run out of time or money, and are unable to build the deck or re-finish the hardwood.  Understood. Sometimes cash is tight. But what else needs to be understood is this: Unfinished projects will affect the marketability and the bottom line sales price of your home.

I was recently in a home where the homeowners had a door from the breakfast nook to, well, nowhere! That first step outside is a potential leg breaker! This 5 year old home never had a deck attached as was intended when the home was built, yet there was no apparent pricing adjustment to the list price. Then there is the story of the owners of a 1 year old Fischer Homes resale in the Polo Fields who had accepted a corporate transfer.  I will never forget listening to the homeowner justify the price he wanted, based on the fact that his unfinished basement with 10’ ceilings and 3 nice sized windows let in quite a bit of daylight. Now, the home wasn’t built with a walkout basement.  He reasoned with a few adjustments, like cutting through concrete, it could have a walk-up stairwell basement, be properly finished, and add about another 2500 sq. foot of living space….What?!  Are you serious?? By the way, the home did not sell anywhere near this guy’s price.
 “No kidding?” you say.

I am currently representing a buyer purchasing a home in West Chester. The out of town owner purchased the foreclosed home as a “fix and flip”.  The problem is, he put it on the market before completing in full the re-hab project.  What my buyers saw was unfinished hardwood, a master bedroom in need of carpet, no appliances, and a yard full of weeds needing attention. Costing his checkbook a great deal of cash, the seller priced the home not as you see it, but as though it were complete. It is not.  My buyers are getting one great purchase, and the seller is completing the unfinished projects, including re-finishing the hardwood floors. Why? Because he needs to sell!  Putting this home on the market before it was ready probably cost him $20,000 – $25,000. Great for my buyers! I’m just glad I don’t represent this seller!

I walked away from an opportunity to list a 4 –unit apartment complex, deeply in need of updates. Why would I potentially “leave money on the table”? Because the seller of the apartment was, and still is, trying to compete in price with newer, more up to date 8 – 12 unit apartments that from an investment position, make sense vs. his very run down “could be” building.

One truth seems to ring true whenever I find myself sitting at the kitchen table with a potential seller, who is sharing his or her vision about what they were “going to do” with their home or investment.  These people had a vision for the home, and life’s circumstances prevented them from being able to complete that vision. Often, I can see it pains that person, or couple, to sell. They love their home, or this investment is supposed to take care of their retirement. We understand.  But as I’ve mentioned before, you need someone who will be objective. You need someone who will tell you the truth. That’s where we come in.

Trust me, it gives me no pleasure to tell someone they need to downwardly adjust their expectations of their home’s value when major, buyer favored items, are missing.  Decks that didn’t get built, appliances that didn’t get installed, fences that didn’t get repaired, gardens that didn’t get planted, and a fresh coat of paint that didn’t get applied. It all adds up.  Potential buyers just have too many options to get wrapped up in your vision. Buyers have their own lives to think about, including their own vision, and it will not help your sale to assume they will share yours.

Your best bet is to put your home in as clean, staged, inspected and corrected condition as your circumstances will allow.  Edit the personal items. Take down the magnets and baby pictures off the ‘fridge. Clean….deep clean. Have the home fresh and in showing shape each and every day. 

Take advantage of our Serious Sellers Marketing Program to make sure you are staged, inspected, and priced accordingly. It’s only $650! If you spent $650 and it brought you several thousand more, doesn’t that make sense? Follow through with this program and your home will sell!

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

Are you ready to Get Serious and get your home SOLD in 2009?   

Great! ….Here’s How!

Gone are the days of “let’s just see” and “we’ll test the market”.  Today’s sellers must be serious about selling…..or the market will make that decision for you!  Today’s seller must take a pro-active approach to marketing to protect their equity.  Today’s seller needs to encourage what precious few buyers are available to choose their home, by eliminating as many obstacles as possible! 

Maybe your home failed to sell previously and you are ready to try something new. You waited for showings that were never scheduled, or had showings but no offers.  Perhaps you are ready to sell, but don’t want to experience the “never-ending time on the market” that your neighbors did. The stress of never knowing how much longer that “For Sale” sign would be in their yards. Then let’s Get Serious!

The $650 “Serious Sellers” Satisfaction Package

* Here’s What’s Included *

• Home Warranty – Coverage is Provided to YOU While the Listing Agreement is in Effect. Transferable to Buyer at Closing.
• Pre-Listing Home Inspection – INCLUDING Termite & Wood-Boring Insect Inspection!! This WILL Save You Time & Money!!
• Professional Photographs – Experience the Difference!
• Staging Consultation with Home Staging and Decorating Professional – Your Home is Lovely, But Today’s Buyers Demand More than “Clean & Tidy”.  The Way You Market & Stage a Home is Much Different from the Way You LIVE in Your Home.

Learn From a Professional & Reduce Your Marketing Time!

Also Included………

• Pre-Marketing Appraisal – Your Agent Has Provided You with a Statistical Right Price Analysis.  The Appraiser Will Provide True Market Value, or TMV.  Price at or Near TMV. You WILL Reduce Your Marketing Time & Saves it WILL Save You Money!
• Online Promotion – Your Home Has its Own Web Page!  Showings Happen Around the Clock, Every Day of the Week. Online Promotion in the MLS, Local Broker Websites, RE/MAX.com, Craigslist …..and 10 Other Sites Used by Home Buyers Across the Globe!
• VoicePad…a 24/7 Information Line!  and In-Home Brochures
• “Front and Center Promotion” to our Google Based Online Home Buyers – Literally Thousands of Online Shoppers Reach Our Site Monthly. Your Home is Featured in our “Market Monitor”.  We Are Keeping Home Buyers Up to Date AND Promoting Your Home When it’s a “Match” to Their Search Criteria!
• Vacant Home Cleaning – An Added Value to Your Potential Buyer & A Time Saving, Stress Reducing, Money in Your Pocket Bonus!

Give The Real Cincy Group a call! We will prepare your Right Price Analysis and get serious about selling!

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

One of the most important elements of the Cincinnati home buying experience, and perhaps the most stress inducing portion of the process, is the home inspection.  In Part One of this series, I shared with you this thought: Just because the inspector wrote down a “problem”, that doesn’t make it so. Some “problems” are nothing more than items that can be fixed with a screw driver or by pushing the re-set button on the GFCI outlet. An inspection report that lists 5 or 6 of these types of “problems” nearly inevitably causes a nervous home buyer to doubt his purchase decision. Look objectively at the report. Dirty gas fireplaces can be easily cleaned by a homeowner. Smoke detectors can be installed after you move in. Wobbly banisters serve no real threat to your health. Just get out the screwdriver.

The purpose of the inspection is to determine if the home has any material defects that were not immediately visible when we toured the home together. What are we concerned with?  Roof condition, termites, radon, non-functioning windows that may prevent an escape in case of fire are good examples. A good inspector should be able to help you understand the difference between real issues, and items that should probably be done at some point….like adding an extra smoke detector in the upstairs hall for example.

Your home inspector is not supposed to be there looking for little bits of problems. He is there to identify major fixes, and major problems.  The purpose of writing down wobbling ceiling fans and loose banisters is to help you “perfect” the imperfect home.  These are not written down to give you a list of items to present to the seller. A wobbling ceiling fan should not affect your decision to buy your home.

Now that we have wrapped our heads around the purpose of the report, and the very real fact that we will need to go line item by line item, making a clear determination between fact, opinion, safety and a weekend minor chore list, let’s talk about what else can happen.

Why Didn’t He Find This Problem?

During the 2 or 3 hours that you and your inspector are together, your inspector may miss a few things. Why? Some problems can not be found unless you actually live in the home. A good example is  hot water distribution in the home if two showers are being run. Drippy faucets can materialize at any time. Leaks can develop after you move in and certain conditions arise…..like a wind storm a month after you buy the home.

The “Last Man In” Theory

It has happened that an inspector discovered a leak in the roof that could be fixed with securing shingles, or correcting a problem with flashing. Bring in the roofer that recommends a new roof. Why? The “Last Man In”.

The “Last Man In” theory is this: The last guy to work on a problem is reluctant to just “fix”, he would rather replace. He doesn’t want the exposure of liability, real or imagined, because he was the last guy to touch it.

Just another thought: in the winter, your inspector can not test the air conditioner. If we are having a snowy winter, the roof may not be clear for weeks. When we are experiencing a hot, sticky summer day, the furnace will not be flipped on.  Problems can manifest later. Wind can be damaging and ground settles. Motors on garbage disposers and trash compacters can give out. I’ve never been able to make sense of the life span of a water heater.  I’ve had them last 20 years and I have seen them go in less than 10. Your inspector doesn’t have a crystal ball.

Different Opinions

There is more than one way to build a home. On the Cincinnati market today are homes built what we might call “Good”, “Better”, “Best”.  All are acceptable.  If you are purchasing a 10 year old $150,000 home, it’s probably “Good”. An inspector might call out something that is “Best” because it is his opinion that all homes should be constructed a certain way or contain a particular feature.   If your home is built to code, the seller doesn’t have to make design changes to make the home “Best”. Bring in a contractor and his opinion may differ on how something should be done that was not noted on an inspection report. Remember, you have two different opinions because the two sets of eyes are coming from different approaches.

You home inspector is giving your home a general, overall visual sweep.  He will not light the pilot light on water heaters, pull apart the furnace, or conduct an extensive mold test. He will generally recommend HVAC and fireplace cleaning.  He will not perform any invasive tests.

Remember that your inspection, even if no real material defects are found, is not going to eliminate any and all future issues. When I bought my home in 2000, my favorite inspector performed a very good inspection. However, within the first 12 – 14 months my dishwasher leaked, the ice maker stopped making ice, the A/C didn’t work the following summer, the water softener stopped working and the garbage disposal quit and needed to be replaced. 

I hope this helps you understand what to expect at your home inspection. The home inspectors that we can recommend will try to do a good job for you. They are here to help. Let’s just be sure to take the report, one item at a time, always keeping in mind the purchase contract language and intent of the inspection contingency, and keep the emotion out of it. I bet you’ll find that the stress just melts away and you will enjoy the home purchase process even more.

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

Story #1

Let’s set the scene: 1st time buyers nervously moving forward on a purchase. They are doing things right. They have saved for the down payment, they have the money in the bank for emergencies, and they are buying well below their approved purchase price so they do not stretch themselves.  Enter the home inspector.  The home inspector convinced them that the electrical wiring in the 25 year old home “was shot”. His exact words. The sellers need to have an electrician re-wire the home. He could not get the front porch light to come on. The exterior plug on the porch didn’t work. It was “dead”.  There were major issues to address! The couple was scared to death of the “fire trap”. They wanted out of the contract….NOW!

Solution:  Burned out light bulb & a GFCI that just needed reset. Yep, that’s it. Seller replaced the light bulb and pushed the little red button on the GFCI, and problem solved.

Story #2

Let’s set the scene: Young executive moving to Cincinnati with his wife and baby. We select a beautiful, gently lived in one year old home. The sellers barely had time to unpack, when he was transferred so the home was sitting there empty, just waiting for my buyers.  For some reason that we don’t quite understand, the paint work is a bit “patch-y” & it really shows up in certain sunlight. Not the nicest touch up job I’ve ever viewed, but this is a great house, reduced in price to meet the market conditions. My customers decide this home is “the one”.  We draft an offer with the understanding that if the sellers accept our contract, we will take the home “as is” and not ask for the home to be re-painted. Offer accepted.  Enter the home inspector who notes on his report that the whole house needs repainted.  I explained to the buyers that our “best deal” included the fact that the home needed repainted, and the sellers are not even going to entertain that notion. And…AND….the purchase contract clearly states that we are not conducting an inspection to discuss cosmetic issues!!   I might add that the same home inspector made comments on his report about yard conditions, on the neighboring lot, in a new construction neighborhood, before there was even a house built!!  He also missed the giant sink hole in the front yard.

Solution:  Our purchase contract clearly states the following. “It is not the intent of this provision to permit the buyer to terminate this agreement for cosmetic or non-material defects or conditions.  Buyer agrees that minor repairs and routine maintenance items are not to be considered material defects with regard to this contingency”. If you sign it…you agree to it!!  Did the buyers ask for the paint job after the inspector said that they should? Yep. Were the sellers a bit, let’s say miffed? Yep.  Did it cause unnecessary anxiety as the buyers suddenly decided that because the home inspector “…said that we should put that in the contract and have them repaint the home….” that this normally respectful and calm Realtor ® didn’t want to put her foot in someone’s backside? Oh yes!!

Story #3

Let’s set the scene: A lovingly maintained 15 year old, custom built 2 story enters the market.  It goes under contract and the buyers send over their inspector.  The inspector notes a problem with the roof. A small leak is noted near the chimney.  It is his opinion the roof has lived a useful life, and that the sellers should spring for a new roof.  The seller disagrees. He understands the integrity of the roof, and knows that a new roof is not at all necessary. There is no curling, no flaking, no loose shingles, zero indication that this roof doesn’t have another 10 years of life. He hires his own roofing expert to examine the issue.  A $200 fix later, and the flashing is repaired, the water is now properly flowing as it should.  Would you rather spend $200 for a minor fix, or about $4000 – $5000 for a new roof? Just because an inspector said so?

Ok….I have collected plenty of stories over the years, but this should do it for now.  Here’s my point:  We absolutely, positively must keep home inspections as an integral part of our home buying and selling process. The guys generally do a good job, and I don’t for a minute think that any one of them are out to “trash” a contract, nor do they intend to make trouble with poor reports.  But they are human. Until the perfect humanoid home inspecting droid is invented, there will be mistakes.

The unintended consequences of the home inspection that notes every “this or that” is this: while it may sound “thorough” it scares the heck out of buyers! It causes buyers to question their purchase, and wonder if they should move forward on a home that is now “tainted”. Talk about buyer’s remorse!! Sorry, but there is no provision in a purchase contract to dump on a home because now you doubt your decision.   When you are handed your home inspection report, be objective. Really look at what is important on that report.

Let’s not bother to address cosmetics like paint, landscaping, carpet stains or what’s happening in the neighbor’s yard. We took that into consideration when we drafted our offer.  There is no perfect home and your inspector will certainly find something to jot down. Your inspector may note items like wobbling ceiling fans, loose banisters, stains on linoleum, etc.   That’s ok. The point of noting these items should be to help you have a running list of “to-do’s” and point out items that you just might want to take care of after you move in.

Don’t panic. Give the seller the opportunity to correct the “issues”.  Keep in mind there may not even BE an issue!  Sorry, but just because the inspector wrote it down does not make it so.

Yes, we can ask the seller to take care of these items. Many sellers who take pride in their home will be glad to address even a minor “to-do” list. Let’s just try to keep in mind the purpose of the inspection……material defects.

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

There is a distressed market segment of foreclosures and short sales, but that needs realistic pricing to function as well. Overpriced listings don’t attract offers and unrealistically low offers don’t result in accepted sales contracts.
The question for the seller is; “Do I price my home higher than is realistic, acknowledging I’m going to get beat up when the offers come?”
The buyer’s question is; “I’ve found the home I really like and it seems priced well, should I make a low ball offer?”
For the seller, if you’ve priced your home well, you needn’t accept bad offers. Leaving a little negotiating room has always been wise but pricing too high by building in too large a buffer will preclude offers coming in the first place. You’ll end up lowering your price, possibly several times and settling for a sale at a lower price than if you had priced the home correctly in the first place. By pricing competitively when your home is fresh on the market, you maximize your advantage versus stale and/or overpriced listings. Testing this market by pricing high and thinking, “we can always come down”, is a disastrous strategy. It will cost you thousands after you’ve missed the real buyers for your home and the vultures start circling.
For buyer’s, unless you’re one of the aforementioned vultures who enjoys shopping the picked over remains of the market, new fresh listings are still the best opportunity to find a good home at a good price. If it’s priced well and offers the amenities you want, don’t treat the seller as if they have a stale overpriced listing. I’ve seen buyers, even in this market, lament “the one that got away” because they procrastinated or tendered a low offer and waited for the sellers to come down significantly, only to have someone else buy the home they really wanted. This is still a good market for good homes that are priced right.
If you enjoy playing the market, either as an unrealistic seller or as a low ball buyer, you’ll probably end up playing with each other. As a seller, you’ll end up in the picked over pile of stale listings in a declining market. As a buyer, you’ll be picking over those listings. So, you need to ask yourself, “Which market am I in?”

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

There have been several key changes to the First Time Homebuyer Tax Credit; here are some of the highlights:

• The amount eligible for the tax credit is lesser of 10% of the cost of the home or $8,000. This is an increase from the July 2008 provision of $7,500

• Any single family residence will be eligible, as long as the homebuyer will be using it as his or her primary residence

• The tax credit reduces, or eliminates, the income tax liability for the year of the purchase. Any unused amount of tax credit is refunded to the homebuyer

• Be aware that there are income limits. The full amount of credit is available for individuals with adjusted gross income of no more than $75,000 annually. For those filing a joint return, the adjusted annual gross income can be no more than $150,000. This phases out above those caps at $95,000 and $170,000

• First time homebuyer (and homebuyer’s spouse) may not have owned a primary residence in the 3 years prior to purchasing the home in 2009

Here are some significant revisions to note:

• No repayment of the tax credit is required for home purchases on or after January 1, 2009 and before December 1, 2009.  This is a major difference from the tax credit offered to first time homebuyers in 2008

• If the home is sold within 3 years of the purchase, the entire amount of credit is recaptured on sale. This will apply only to homes purchased in 2009

• Home buyers can use state and local bond funding and still take advantage of tax credit

• All revisions are effective as of January 1, 2009

As always, it is essential to discuss your potential or impending home purchase with your tax advisor.

There are many fantastic reasons to purchase your first home – now you can add another one to the list: a sensible tax credit!  So give us a call or shoot us an email, and we will refer to you a mortgage consultant that will help you to assess your purchase power. Then, let’s get out there and boost the economy!

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

Because of Teresa’s expertise, she has been a featured contributor to WCPO Channel 9 News, The Cincinnati Enquirer, and Home Improvement Magazine.

Teresa and Stage a Star has developed for you a complete and total staging package, always keeping in mind the individual homeowners’ needs and budget. You will receive a 50+ page guide, jammed with tips, checklists, and a “Seller Survival” guide. I’ve seen it! You’re going to love it! 

You just never know when a buyer will decide she is ready to see your home. You may get a 1 or 2 day notice.  Sometimes you get about 15 minutes notice. Rule #1 – Never, Never turn down a showing. Talking with Teresa the other day, she shared one of the tips she gives to sellers.  She suggests homeowners get a basket for the bathroom. Every day, before leaving the house, toss all the hair brushes, mouse, styling products, toothpaste, floss, tweezers, all the items we need to make ourselves pleasant for the public, into the basket, and stuff it under the sink.  Sounds simple, but when you want to sell, need to sell, every little tip that makes life easier for you is a blessing. And, you won’t panic when you get the call from the appointment center letting you know someone just drove by your home and would like to see it….in 15 minutes.

Her consultation package includes a CD Rom with success stories. There are 1 or 2 visit packages to choose from.  She will stage using your furnishings, concentrating of the areas of the home most important to buyers: kitchen, living room, dining room, master bedroom and baths.   Vacant home staging is offered too. Staging a vacant home is critical to getting a home sold! I know from touring with buyers every blemish just jumps out and gives the eagle-eyed buyer too many opportunities to dismiss the home over cosmetic and very minor flaws. Every cobweb stands out, every carpet stain, no matter how small, is magnified.  If you’ve already moved out, I can not overstate the importance of vacant home staging.  Prices will vary of course, depending on what the two of you agree to do.

Now your home is staged, and we need to show it off. I know for a fact many homebuyers will immediately dismiss a home when searching the net for homes to visit, if the online photos are not available from Day one. Teresa has wisely partnered with Jenny Walters Photography. You can view Jenny’s work on the Stage a Star site. You can’t help but be impressed by Jenny’s eye for even the smallest detail. Your home will leap off the computer screen and onto the buyer’s “Must See List”.

Be sure to visit the Stage a Star site and enjoy the before and after gallery. It’s fun to see the transformations. Teresa, Jenny and the rest of The RealCincy Group  look forward to helping you sell.

Give us a Call.      36 Days. Wow!

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

What our GSP does:

• It does relieve you of the burden of owning 2 homes
• It does relieve you of the frustration of writing a contingency offer that the seller promptly rejects
• It does relieve you of the worry that someone else is living in “your home”.  You’ve combed through the homes on the market, you found “the one”. Now, it won’t get away from you!
• It does keep you from having to take out a bridge loan, or tap into a line of credit to buy the home you really want
• It lets you Relax. Your home is SOLD!    Get some sleep.

No Application Fee!  You Always Get Market Value, Maybe More!

• 120 Day Buy-out
• No Carrying Costs After the Sale.  If we buy it, we own it! No money held back from you.
• No Seller contribution. That means the seller of your new home doesn’t bump up the cost of sale to you!
Sounds Good Doesn’t It?  So, here’s the “fine print”:
What our GSP doesn’t do:

• No multi-family homes or farms. No modular or distant rural homes.
• No homes that are not served by public utilities
• No homes outside of our market area
• No short sales or homes that are heading toward foreclosure.

Case by Case, we will consider condo, townhomes, and homes with pools.

More “fine print”:
• The RealCincy Group assists you in the purchase of your new home. We can help you in both Ohio and Kentucky
• We all agree, in writing, to our first offering list price, subsequent price reductions.
• Your home is purchased, after 120 days, at 95% of agreed market value, minus normal seller expenses.

“Why would I agree to that?”  Because, if WE buy your home at that price, that mean no one else in the open market would.  You have, in effect, “won the lottery” and come out ahead! WE carry the home and all the expenses. WE do the painting & maintenance on the empty house after you move into and are enjoying the new home! WE take on the risk of marketing the home….You’re Done!

If you would like more details, give us a call! We will show you our 120 Point Comprehensive Marketing Plan. Combining this Revised and Updated Marketing Plan for today’s real estate environment, taking advantage of the Serious Seller’s Satisfaction Package, with the security of the Guaranteed Sale Program, you can stop worrying  ……… and start packing!

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

The FHA 203K is for owner occupied properties only. There is a down payment minimum of 3 ½%. Sorry, no investors will qualify for this specific program.  If you are shopping in the foreclosure market, be sure to address this with your lender during your pre-approval process. Now that you’re ready to home shop, let’s break it down so that if you find “the one” but it could use some sprucing up, you’ll be ready.

1. Get your pre-approval. Know your loan limits and comfort zone. View homes that may interest you, and identify which home is “the one”.
2. Prior to writing your purchase contract, you need to determine the following:
• The extent of the work necessary.
• Approximate costs
• Impact on market value.  After the work is complete, you want to make sure that the price you pay for the home, plus the costs of repairs, makes sense.  The two should add up to current market value (if in good condition) or less.  Certainly never more!
3. Make your best offer.  Be sure your agent writes in the financing section of the contract you will be applying for a 203K.  The contract should be contingent upon loan approval, and you, the buyer’s, acceptance of any additional required improvements as determined by the lender or HUD.
4. Prepare your write-up and cost estimate.  You’ll want a plan reviewer to assist you with the paperwork.  You’ll receive a HUD Case # and move onto appraisal and inspection.
5. Meet the plan reviewer and contractor if applicable, to make sure the plans are acceptable. The program requirements and all the paperwork is prepared accurately.
6. Appraisal is performed
7. The lender reviews the application, including the appraisal, to determine the maximum amount they will lend.  The issuance of Conditional Commitment/Statement of Appraised Value is issued.
8. You will now need to provide to your mortgage consultant all final documentation she requests to obtain full loan commitment: bank statements, paycheck stubs, W-2’s, etc.  Your employment will be verified. Once that is reviewed and accepted, the lender issues full loan commitment.
9. Day of Closing!  It’s yours!  The documents are drawn up stating the conditions the lender will release the funds for improvement from the Rehabilitation Escrow Account (REA).  You will be required to start making monthly payments on the entire principle amount of the mortgage, including the amount in the REA that has not yet been disbursed. There will be a 10%- 20% contingency reserve of the total remodeling costs. This is used to cover any extra work not originally included in your proposal.
10. Construction begins.  You have 6 months to complete the work.  Some lenders will require less than 6 months, depending on the amount of work to be performed.
11. Funds are released from the REA after work is inspected and approved by the HUD approved inspector.  There is a maximum of 4 draws plus a final inspection draw in that 6 month period.
12. Enjoy your new home, and start realizing the benefits of home ownership, and feel free to admire your handiwork.

I broke down the process into pretty easy steps.  There are more details that you need to know.  Not just single family homes will qualify, but 1 – 4 family units.  Condominiums will qualify with certain specifications.  There is a $5000 minimum requirement for eligible improvements.  Cosmetic repairs like replacing that ugly orange shag carpet and shiny wallpaper from the disco era don’t qualify under the rules of 203K.  If they need to be replaced as part of the total re-hab, they can be considered.  Structural alterations and repairs, like that block basement wall, do qualify. So do chimney repairs, roofing and gutters.

I’m going to send you to The Department of Housing and Urban Development’s website, so that you can get more detailed information. Read up on the 203K process, in detail, and you’ll be a more confident buyer as you move through the foreclosure market.  As always, if you see any homes that interest you, and you want to explore them, give the RealCincy Group a call. We’ll be glad to assist!

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