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

Stalled Luxury Home Sales

A few months ago I gave you information about the upscale housing market in the Greater Cincinnati area.  Those areas included Butler, Warren, Hamilton and Clermont counties.  We discussed the Jumbo Mortgage Market, and how tight control on the interest rates for the luxury home market may be slowing the housing market, at the “grass roots” level.

I just put together an update with closed sales stats through November 15, 2009.  I thought you might like an update.

Single Family Sales: Butler, Warren, Hamilton and Clermont Counties.
Source: Greater Cincinnati Multiple Listing Service

It’s possible that once the current 23 pending sales do close, that we the “Over $700k+” sales will not come to the anticipated 138 total.  We will just have to see if those homes, in this buyer driven market, that are priced close to the $700,000 list price, do indeed sell over $700,000

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

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

Our "leaf lawn"

Did you see that gorgeous full moon last night?  It was a beautiful sight.  I love the chilly nights and cool days.  The leaves are everywhere! I have to confess:  We don’t do a great job of raking at our house. Never have and probably never will. We just like the look of the scattered leaves. I am glad to see that several of our neighbors do too.  We aren’t the only house on the block with a “leaf lawn”.

Are you ready to take the time to look at year to date numbers? Let’s see how this year, through October 31, 2009, compares with the last few years, back to 2005.  These stats are, of course, from The Greater Cincinnati Multiple Listing Service. January 1 – October 31, single family closed sales, no auctions. The stats include the Hamilton, Clermont, Butler and Warren Counties.

                                                             January 1 – October 31 

See any trends here?  So far this year, closed single family dwelling sales are 394 units down from last year, but a whopping 5,476 from the 2005 high.  The list to sale ratio continued dropped with a “thud”, as buyers drove hard bargains. Combine the buyer’s “upper hand” approach to negotiations with sellers who are still over-pricing, and the L/S ratio widen.   The back story on these numbers you don’t see, are the number of homes that had to have 2 or 3 price reductions before a buyer wrote an offer that resulted in a closed sale.

If you want more detailed information about your specific neighborhood or price range, let me know! The RealCincy Group would be glad to prepare your personal report.

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

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

To help get you comfortable with the Greater Cincinnati and Northern Kentucky area, The RealCincy Group with RE/MAX Unlimited would like to offer to you the latest copy of The Insider’s Guide to Cincinnati. This up to date, 400 + page book is full of really good information about the area that other incoming buyers have found extremely helpful! You’ll find information about shopping, local attractions, health care, senior services, and nightlife, where to find the libraries, tips on getting around town, and yes, plenty more. Go to our home page and place your secure order. IT’S FREE! And No Worries! No one but The RealCincy Group will see your information.

It’s a well known that most homebuyers, about 90%, begin their home search on the internet. Many homebuyers also find their trusted real estate advisor on the internet too. That number just keeps growing as time goes on! We want you to be comfortable with selecting the members of The RealCincy Group to assist you with your move to our city. Take the time to look through this website. Read the articles on Home Buying, Home Selling, Market Information, and see what we have to say about different areas around town. Use the links to read about what the city, and different suburbs, have to offer. You’ll get to know us as you read the articles. We can talk, in person, about your specific needs, the type of homes you prefer, whether you like a more urban or suburban setting, and anything else that concerns you.

Schools are a priority to many parents moving into the area. Understand that we want to be helpful. We can provide sources of information to you, so that you, as a parent, can decide if one system or another is “good” for your child.

You also probably want to make sure that we have experience taking care of incoming, relocation buyers. We have been trusted to work with Greater Cincinnati and N. Kentucky employers, large and small.

• Kroger • Procter & Gamble • Western & Southern Life Insurance • General Electric • Ford • Lens Crafter • Hill-Rom • Delta Airlines • Chiquita

This is just the start of a long, long list of companies that will read as a “Who’s Who” of Cincinnati employers. We’ve worked with Cendant Relocation, Wiechert Relocation, Sirva Relocation, Prudential, and Lexicon Relocation too. Don’t see your company here? That’s ok. We can meet or exceed ANY criteria that they would require. YOU DO have the right to request our services. We have never, ever, had requests for any of us denied.

Wouldn’t it be nice if you could just move the home you love here? Put it on a truck and bring it with you? Probably not going to happen right? So, it’s time to see what Cincinnati homes for sale look like.

You found our Real Estate search site to look for homes on your own at accesscincymls.com. That’s good….But we can do better than that!!  We can create your own personal “Market Monitor”, direct from the Greater Cincinnati or Northern Kentucky Multiple Listing Service that will show you all homes in the price range and areas of town that might interest you. You will have good, detailed information on each of the homes, including photos and a mapping function. The system will alert you via email when new listings enter the market, or if there are any price reductions. You can save the homes you like, and may want to tour. You can reject the homes you don’t like. Interesting???  You bet!  If a home happens to go under contract, once the sale is complete, you get to see the final sales price immediately! Just like we do! You will be a VERY  informed home buyer. Ready to get started? Give us a call, or send an email. We can talk about what type of home you may be looking for, and create your personal “Market Monitor”.

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

Living in your home, it’s often easy to take the operating systems for granted, or have some chores that you’ll get to later. We’re as guilty as the next guy. However, when your home enters the market, “Economics 101” kicks in, and your home becomes a commodity.  Because there are just so many home buying options, buyers are often looking for a reason to eliminate homes from their list.  Let the pre-listing home inspection keep you on the list, and set you apart from the others.

The pre listing home inspection report can erase the “unknown” and help eliminate objections.  If the inspection reveals an expensive repair, the seller can disclose the defect, and price accordingly. In lieu of repair, having two bids for the work will eliminate what I call the “pain and suffering” award buyers will impose on a seller, to cover the unknown costs of a repair. Buyers tend to greatly overestimate the cost of a new roof and will deduct $15,000 when $8000 will cover the cost. I saw an offer written to reflect what the buyer’s thought would cost about $2500 in electrical work, when under $400 took care of the issues.  Even with cosmetic items… have bids!  Another home, beautifully wallpapered to reflect the homeowner’s taste, eliminated 100% of the buyers that viewed the home, due to the wallpaper! Buyers assumed it would be thousands of dollars to neutralize. The bid of under $2000 quickly firmed the sellers pricing position. Be proactive!!! This is your money and your investment!! Don’t “wait and see” and deal with it later.   It will cost you money!!

Buying a home is an emotional decision backed up by the checkbook. Let’s give the buyer a reason to move forward on your home.  A clean sale, with no major defects or objections to address, will soften the buyers’ fears. Remember, if this one doesn’t work out, there are a lot more homes to choose from! Buyers don’t always “get it” that the home inspection is not an “out” to a contract because of cold feet, and may attempt to use some small objection such as a wobbly ceiling fan, or a couple of broken window seals as a way to void the contract.  First time home buyers, faced with the realties of homeownership responsibilities can be fragile. Let’s make them comfortable and eliminate those issues up front.

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