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

A common misconception that potential buyers may have, especially first time buyers that know little about the process, is that working with several agents will get them better, faster results, and that they will see more homes.  Buyers want to make sure that they are not missing out on any homes that may be in their price range, in the areas of town they like. A buyer may not understand how the Multiple Listing Service works, and that all realtor® members have access to all listed properties. If a buyer has 2 or 3 agents that they decided they might like to work with keeping them informed about the market, and providing them with listings, the buyer should quickly see a duplication of efforts. That can become confusing and result in problems down the line about who is entitled to claim that they “threshold” the buyer, and ultimately represented the buyer at contract time.

Agents have a Standard of Practice, 16-9 in the REALTOR® Code of Ethics, that dictate that we must make every reasonable effort to ensure that the buyer we are getting ready to assist is not under a contractual obligation with another agent to provide the same service. That is why we ask if you’ve been working with anyone. Please let us know. We will make every effort to make sure you see our listing and work cooperatively with your agent if the answer is “yes”.

To ensure that you are receiving top-notch representation, and to make sure you are seeing all homes that could suit you and your family, commit to one agent.  Your agent should be a member of the Greater Cincinnati Multiple Listing service, like all members of The RealCincy Group.  Randy is also a member of The Northern Kentucky MLS, and can assist you in both Ohio and Kentucky.

You can tell if your agent is listening to your wants and needs, taking into consideration your preferences, and comfort price range, and providing listings to you that most closely meet your criteria.  You should expect updates as frequently as the market changes: immediate notification of new listings that match your criteria, and notification of price reductions. 

Your agent should be able to discuss with you market trends and analysis, and provide you with the information you need to make a good, solid home buying decision.  Your agent should provide you with information about how Agency Representation works in this area: buyer agency, seller agency and disclosed dual agency.  Your agent, in my opinion, should be a full time, dedicated real estate professional, not someone that sells “after my real job” or while the kids are in school. In this market, most of those “dabblers” have gone on to another job…..but they are still out there. Be careful!

Not all real estate agents are the same. I know realtors® that have been in the business for 15 – 20 years, but sell about 3 or 4 homes a year. Real Estate Agents pay big dues and fees. We buy all of our own equipment (lockboxes, keypads, signs, etc) and pay for continuing education, so that never made sense to me.  Anyway, is that person going to have the field experience necessary to guide you through the process? Is the agent that you choose to work with also holding down a full-time job elsewhere? How tapped into the market do you think they are when they don’t have the time to watch MLS, read trade publications, and perform trend analysis? How quick will she be to address any issues that arise during the day, when her boss doesn’t allow personal calls on the clock?

One great analogy I heard was this: many of us have a driver’s license, but do we all have the skills necessary to drive safely and negotiate difficult road conditions? One trip around I-275 on a rainy day in rush hour answers that question!

For outstanding service and representation, work with a RE/MAX agent.  RE/MAX agents sell 39% more homes than our fine competitors at other national franchises. That translates into experience. You need experience to guide you through the process.  Now, as if there were any question, I am going to recommend not just any RE/MAX agent, but a member of The RealCincy Group with RE/MAX Unlimited. 

Give us a call or send an email.  Don’t Call on Signs. Don’t Call on Ads…..Call one of Us!

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

Because there are so many more homes in foreclosure, and the nightly news is focusing quite a bit of attention on this very real national problem, let’s look at some facts.

Stats to Consider

Per the Greater Cincinnati Multiple Listing Service:  in the last 12 months of residential sales, 12/10/07 – 12/08/08 (single family and condos) of the 18,695 homes that have sold, 4729 were lender or government owned.  
25%     1 in 4.

Going back to the same time period (12/10/06 – 12/10/07)  22,404 homes sold, and 4084 were lender or government owned.  18%  or less than 1 in 5.

Out of those sales, were there deals? Sure.  Did any of those homeowners buy a nightmare? Absolutely.

Speaking of “Deals”

Early on in what we will call our “current real estate environment”, many of the foreclosure properties were priced too high. The lender’s learned quickly that as their inventory started to mount, the prices better come down, and they better do a good job of pricing closer to the declining market value. This is evidenced by MLS stats that show that the list to sales price ratio is currently at 95%, when calculated using the “average” list and sales price.  In other words, no $350,000 homes for $150,000.

Of all the foreclosure homes I’ve toured with customers, and I’m talking hundreds, only 2 have been ready to be moved into with little more required than turning on the utilities.  All the others were, unfortunately, going to need more than new carpet and a fresh coat of paint.  No, not even close. Filthy, greasy carpet, holes in walls, ripped up vinyl, kitchen cabinets ripped off the wall, fireplace inserts torn out, the fireplace mantel ripped off the wall, light fixtures gone, interior doors taken, shower nozzles and bathroom fixtures removed, all appliances including garbage disposals ripped out, broken windows…..and mold. Plenty of mold.

When you buy a foreclosure, you buy it “as is”.  You do generally have the opportunity to inspect the home, but there is no recourse should you miss something in the inspection, and the problem materializes after the sale.

Does She Have a Point?

My point is this: be realistic.  Are there people with a credible story to tell about the “good deal” they found in the foreclosure market?  Of course.  But the combined advice of the realtors® of The RealCincy Group is that we want you to ignore the “urban myths” and decide how much you are willing to endure to get that bargain. If you have any time constraints, like a home that is under contract that you need to vacate or a rent agreement that is about to expire, this may not be for you.

Most of us learn home maintenance by trial and error.  First time home buyers know that they will need to learn how to “tighten this”, and “caulk that” as time goes on. When buying a distressed, foreclosure home, there’s probably going to be quite a bit of work to do.

So before jumping into this market, consider this: how handy around the house are you? Do you have friends and relatives that work in the trades that you can put to work if you promise to feed them?  By the time you paint, carpet, fix, replace, repair and hope no latent defect materializes, would you be better off just buying the nicest home on the market in your price range from a private owner or builder?  Something to consider!

If you do decide to proceed with making an offer on a lender owned property, be sure to go to the next article about the process.  “What to Expect When Buying a Foreclosure Property”.  If we’re going to do this, we should do it right!

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

What will my Interest Rate and Annual Percentage Rate Be?

Keeping in mind that interest rates fluctuate, ask the lender to quote an approximate rate, based on today’s published rate. Then ask about the APR, or Annual Percentage Rate.  The APR is the interest rate, combined with points, and any other charges, divided by the loan’s term (usually 30 years) to a give an annualized rate.  Your APR will be higher than your interest rate.   Some people have chosen their lender based solely on the quoted interest rate. This is a huge and costly mistake.  Your APR is the more accurate way to shop and compare.

Do You Charge Points?

Understanding Points: Points represent the lender saying  “pay me now or pay me later”. A point is one percent of the loan amount.  If you are charged points, you should be getting a lower interest rate. You are buying down your interest rate up front.  Depending on how long you expect to live in your home, points may or may not be a good idea. Consult with your real estate and lending professional, to discuss whether you should consider paying points.

What are your Total Closing Cost Fees?

Ask your lender to “aim high”. It’s best to have the worst case scenario than be too far into the process to turn back, after learning the fees have increased.  All lenders charge fees for the services that they provide to process and close your mortgage.  Closing costs must be disclosed within 3 days of the loan application process. It is the law to protect you, the consumer. Be aware though, that some brokers will initially disclose low figures, which tempt you into working with them, only to “find” and charge higher fees closer to the date of closing.

What is the Charge to “Lock-in” My Rate?

Often you will be offered a “lock-in” policy that guarantees you a certain interest rate.  There are frequently points associated with a lock-in.  There is also a time limit associated with this lock-in.  Without a lock-in, you are agreeing to prevailing rates as your closing approaches. Since rates can change daily, sometimes within the day if the market is particularly active, this one time lock-in fee may be able to lock you into an excellent rate.

Are you a Broker or a Bank?

There is a difference.  A broker is independent and can work with a variety of lender/investors.  They generally have more opportunity to find you loan programs that fit your needs.  The fees may be slightly higher, but they do provide more loan programs and buying opportunities.  The bank may have slightly lower rates and fees, but generally provide very limited lending programs.

FHA Direct Endorsement, or VA Automatic Endorsement. Is it Available if Needed?

Automatic and direct endorsement means a lender has met the government requirements for working FHA/VA lending programs. The underwriters have completed mandatory classes.  This saves you, the borrower, time if you qualify for a VA or FHA loan.

Private Mortgage Insurance, or PMI. Can I Finance PMI into the Loan?

Your lender may allow you to finance the first year’s premium into the loan amount.  PMI will be charged if your down payment is under 20% of the sales price.  This insurance premium is to protect the lender, who is carrying the bulk of the risk on this loan, in case you or someone who assumes the loan defaults.

Can I Pay Off the Loan Early Without Penalty?

Generally, the answer will be yes. There are some exceptions.  Make sure to be certain that your lender has not placed you in a loan program with a pre-payment penalty without discussing this with you, and why your situation would call for such a clause.

How Does the Mortgage Consultant’s Resume Read? Any Referrals?

Not all mortgage consultants work the same, even within the same company. Make sure you have a “good fit” and that your consultant understands the level of communication you expect.  Does your lender have a solid reputation for processing in a timely manner? Is he knowledgeable about the lending programs currently available and the latest industry changes?  Will she return your calls within the day, or the next morning at a minimum? Maybe she can provide you with a referral or two to speak with.

Are There Any First Time Buyer Programs You Can Offer?

If you are a first time buyer, ask!  This process of buying a home is exciting, and is one of the largest, most significant financial decisions you will make.  As a first time buyer, you may have questions and concerns that need addressed.  Many lenders can provide loan programs tailored to the first time buyer.  There are some programs that may require you to take an online class…..but it’s worth the time to obtain the loan!

I hope that helped to take some of the mystery out of the process. Now that you have your lender, and your loan, give us a call!

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

1st – Where do you want to live?

• What part of town do you prefer?

• Do you prefer quiet country living?

• Do you prefer a suburban environment, with shopping and restaurants within minutes away?

• Do you prefer the downtown, or urban scene?

2nd – Schools – Do your children have specific needs?

3rd – How far are you willing to live from:

• Work________________miles
• Family_______________miles
• Friends_______________miles
• Other?_______________ miles

4th – Do you need to be close to public transportation?

5th – Do you need to be close to an airport?  Large international airport, or smaller, for private planes?

6th – Do you have a preference about living in an area with a community association?

7th – What else would you want in your community?

• Sidewalks
• Community Pool
• Golf Course
• Basketball Courts
• Tennis Courts
• Gated Community
• Clubhouse

8th – Are there any other special need to consider when deciding what areas you prefer?

Type of Home Your Prefer

9th – Do you prefer an older home, or a newer home?

10th – What type of house do you prefer?

• Ranch / One Floor Living
• 2 Story
• 2 Story with a first floor master bedroom
• Bi-level or Tri-level
• Townhome
• Multi-level Condo
• High Rise Condo

11th – What style of house appeals to you?

• Contemporary
• Traditional
• Transitional
• Southwestern
• Colonial
• Farm House
• Victorian
• No preference

12th – Are you willing to take on renovation projects?

• Absolutely!
• Absolutely not!
• Maybe some projects

13th – Do you have any physical needs that should be considered, such as wheelchair access, or bathroom and bedroom on the first floor?

14th – What else should you consider?

• Large yard, one acre or more vs. a small yard
• Fenced yard for pets and small children’s safety
• Garage space:  Enough for 1, 2, or more
• Patio or deck
• Pool
• Outdoor spa
• Cul de sac lot
• Treed lot

Consider the Interior Space

15th – How many bedrooms must you have, minimum?______

16th – How many bathrooms do you want?_____

• Would you like a bath adjoining the master bedroom?

17th –How large of a home to you prefer, in square feet?

• No less than ______
• No more than ______

18th – What other feature do you ideally want in your home?

• Air conditioning
• Wall to Wall Carpet
• Ceramic Tile
• Hardwood floors
• Eat-in Kitchen
• Separate Dining Room
• Formal Living Room
• Great Room
• Study or library
• Basement, finished or not finished
• 1st or 2nd floor laundry room
• Fireplace, gas or wood burning
• In-law apartment, separate living area
• Jetted or soaking tub in the master bedroom
• Anything else?

It seems like a lot, I know. Taking the time to put a little thought into what you want, and what you need, will help you to sort through all of the home options, and really make a good decision for yourself and your family.

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

Go Ahead & Make a Reasonable, Market Value Offer. Most Buyer’s Won’t

Home buyers often pass up the opportunity to make an offer, even a reasonable statistic based offer, on an overpriced home.  Sellers just don’t understand that often buyers don’t want to insult them, and start the negotiations off on the wrong foot.  Seller erroneously thinks that he can “just try”, or because he “needs to get” a certain dollar amount for the home, that an interested buyer can just make an offer, and then he will consider coming down.  That line of thought is terribly flawed. The majority of buyers will not make an offer. So the home sits.

Listing agents can give bad advice. I’m afraid it happens more frequently than it should.  The seller may be-uninformed that his asking price is out of line with market value.  The seller may simply be using the “wishful thinking” strategy of marketing.  Just hoping that someone will think the price is pretty good and makes an offer.  As a buyer considering an overpriced listing, don’t automatically assume that both agent and seller are aware that the home is overpriced. They may both need educated.

Buyers viewing a nice home, that is clearly overpriced, will often assume that a seller has turned down reasonable offers.  Generally, there are no offers for the seller to consider.

Overpriced Listings Don’t Advertise “I’m Overpriced”. So How Do You Find an Overpriced Home?

Ask your agent to research the Multiple Listing Service for homes in your price range, and areas of town that you would like to live.  Have your agent also look for homes in your areas of interest that are priced a bit above your top price range.  Depending on your approved loan amount, that may be $5000 or $50,000 over your comfort zone.  Your agent should then be able to quickly find the homes that have been on the market for 4, 5, 6 months or more.  Discuss with your agent what would be “reasonable” days on market for your area and price range, and then look for homes that have exceeded the norm.

If your agent is experienced and knows her market well, she should be able to help you understand which of these homes are clearly overpriced, and may be worth a visit.

Will a Seller Lower His Price?

Quite Possibly!!  It happens all the time.  A hot seller’s market is one thing, but in this current environment, when buyers clearly have the upper hand, sellers are slowly beginning to understand that last year’s price is not today’s price.  Too many seller’s are suffering from “not my house” syndrome, where they think that their home is immune from the current home selling downturn.  When their home is neither shown, nor sells, they slowly learn that not just the neighbors have taken an equity loss, but so have they.

Not every overpriced home will sell, even when a reasonable offer is presented.  But do know that when a seller is asking an unreasonable price, it’s very possible that your offer will be the one to finally help them understand the true value of their home.  If that same seller has turned down previous offers, it’s just  a matter of time before the seller “gets it”, the light bulb goes on, and he understands that if he is going to sell,  he better strongly consider this offer.

Let’s Not Be Unreasonable

Let’s be sure that we understand the difference between finding the good deal in an overpriced home, from a pool of overpriced listings, and making a low-ball offer.  If you make a low-ball offer on a home whose sellers have fairly and accurately reduced their asking price to reflect the current selling environment, be prepared to either jump up in your price, or be prepared to walk away.  The low-ball offer will probably not result in you owning the home at the low-ball price. Those offers, quite often, turn into a waste of time and energy for all parties involved.

No, this is a different approach to finding your dream home, from available inventory, that you may have not previously considered.

Enjoy your new home search, and I hope you found this interesting!

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