AmyBSells Team - Cincinnati Real Estate Blog

Amy December 3rd, 2007

The answer is, why wouldn’t you get a premium service without any added cost to you?

That is the question asked of me sitting at a kitchen table a week ago. A seller with two homes, not by choice, in a down market, priced too high and on the market for over 6 months said to me, “Why didn’t my first Realtor show me this information, I could have made a more informed decision about my original list price and the market in my area?”

I was saddened to hear how her previous Realtor did not do the necessary research that all CRS Designees are taught to do in their advanced training classes. I was called in after another agent could not sell the house. I took a totally different approach in considering the details of the listing. That is what Business People, or Certified Residential Specialists know how to do. It makes all the difference in the world.

That seller looked at me, with tears in her eyes, realizing that she had wasted 6 months of a decent market at the wrong price with the wrong Realtor, and that decision had cost her tens of thousands in the end. She said to me, “I had no idea you could provide this type of information on my house, my neighborhood and the local market. How did you know how to do this?” My answer was simple, I could have years of experience, but the CRS Education and training is what taught me how to find, organize and present the most relevant data to price listings to sell, all while making sure that the sellers largest financial investment was understood and treated with respect.

As a CRS, I am in the top 4% of the Realtors in the country. Certified Residential Specialists do more than three times the amount of business that the average Realtor does in a year. I have completed necessary experience and education that awards me the honor of being one of the elite Certified Residential Specialists. I have invested my own money in my education to become the best Realtor for my clients that I can be. After I earned this designation, I continue to invest in myself and my clients with additional educational opportunities and training. I want to be a wealth of knowledge so that I can transfer that information and those skills I learn in my CRS education to professionally assist my buyers and sellers with their largest financial investment.

In CRS courses, I learn skills and ideas that help me represent my clients better. I also learn advanced negotiation techniques, innovative marketing ideas, how to calculate absorption rates and how to predict how long a listing will take to sell, how to price a home, how to earn referrals and how to thank my customers and clients. How to create a team of professionals to make my clients experience the best it can be. I learn how to plan for my business’ financial future, so I am making good investments in my business to ensure that I will be able to work with my clients throughout their lives. I learn how to counsel, ask the right questions, answer the tough questions, negotiate, concede and win. These classes are taught by the most fantastic and experienced instructors that I have ever encountered in any industry. The forums are open and provide a wonderful environment to share experiences and ideas to make each of us better Realtors for our clients. I network and brainstorm with the nations Real Estate cream of the crop, bringing valuable and effective strategies and ideas back to Cincinnati and Hyde Park. We strive to be the most professional, knowledgeable, and experienced Realtors in the world. I do this to make myself better for you! I invest my own time and money, which makes me a better Realtor for you.

Just like a person would never trust anyone other than a Cardiologist with their most vital organ, their heart, … Seek and find a Realtor for your largest, most vital financial investment with a CRS after their name, because there might as well be a Dr. in front of it too, Dr. of Real Estate!

To learn more about the CRS Designation and the Council of Residential Specialists, visit their website at www.CRS.com.

• Buyers , Sellers
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Amy August 28th, 2007

A 5 part series on what steps you need to take to make buying the perfect home easy

As you make the decision to buy your first or next home, the most important first step is to talk to your Realtor, so that I can get you set in a direction that makes the entire process simple for you and as easy as possible. You can read here what other people who were buying a home from me thought of my ability to make things easy for them.

From my perspective as an Accredited Buyers Representative, completely educated and experienced in representing Buyers in their home purchase, I feel that talking with a lender is the most important Step in the entire process. Your financing is the foundation of your home search, it defines what you can and will buy.

Our first of this 5 part series focuses on Financing for your home purchase.

It doesn’t matter if you have never purchased a home before, if you are buying your eighth home, or are preparing to buy a second home for yourself, you must understand where your financial boundaries are. This is a critical element to the entire rest of the process of purchasing a property.

You must talk to a reputable local lender to determine your debit to income ratio, your credit scores and your reserves. All of these and more factor into the loan that you qualify for. I can give you a few lenders names that I work with, who have proven over the years to be honest, reputable, creative and provide excellent service. Based on the type of property or loan you need, I will give you a few lenders.

As you may have heard from others, “A lender will always tell you that you qualify for a home 3 times more expensive than you would want to buy.” This is true with lenders who are not as focused as my select group of associates. I prefer to approach the loan approval dollar figure in a different way.

Loan Approval: pull credit and prove income confidentially with lender constitutes a loan approval, this is more official that a pre-qualification or pre approval

As a client of mine, I assume you have a monthly figure in mind that you are comfortable paying for your mortgage payment. This figure will include Principal, Interest, Taxes and Insurance for your loan, known as PITI. That dollar figure can then be shared with the lender, who will then work that monthly payment backwards to tell you what price range you need to stay within in order to keep your payment at or below that monthly dollar amount. From there, we can stay under a certain price range to keep you comfortable, or go above, as long as you make the decision that the higher price is worth the extra monthly cost to you.

This is one of the first items to discuss with the lender during your loan approval process. The lender asks a multitude of questions that can be answered in about a 20-30 minute conversation. It is important for you to understand that your conversation with these lenders is confidential. Your income, your debit all of that is not to be shared with me, your Realtor. The lender assesses your situation and only shares with me the types of loans you qualify for and how I can negotiate in the contract to get you the best financial terms possible. At no time am I privy to your credit scores, or income figures etc. This is important to me, that you are comfortable with me as your Realtor to sell you a home, I do not need to know that info, only what your price range is and the type of loan you are getting so I can help you capitalize on your negotiations.

See typical Pre Approval Questions here.

Once the lender has the info necessary, they can give you an idea of where your price range should fall. Once this has been determined, they can be prepared to write you a letter of  loan approval once we find a property that meets your needs.

A note about your loan approval letter. I find it most beneficial to the buyer to have a loan approval letter that does not provide the dollar amount that the buyer is qualified to buy. It is best to just simply state that the “buyer is qualified to purchase the property located at 123 Dream Street, Cincinnati, OH.� That way the sellers know you can purchase the property based on the listing price, not that you will pay list price. The local lenders that I work with all agree to this type of loan approval letter. Many out of town lenders will not do this as they do not have a relationship with me to agree to this type of letter, and thus they reduce your bargaining position with the seller during the contract negotiation.

This loan approval letter allows me to catapult into my illustrious Preferred Buyers Program! This program gives you priority service when scheduling showings and working to find your home. Having a loan approval is your ticket to a stronger contract and a smoother purchase process. So many times my clients were the winner in a multiple offer situation just because they had a loan approval and the other buyer did not. In strong markets or areas, loan approvals are required with an offer. As a listing agent myself, I will not allow my clients to agree to a contract without seeing a loan approval letter from a financial institution.

In the Preferred Buyers Program, loan approved buyers with local lenders are entered in to the MLS system to get daily updates on local listings that meet their criteria. If you want a 3 bedroom, 2 full bath 2 car garage in Hyde Park, Ohio, priced between 200-300K, then as a home that meets this criteria enters the market, or takes a price reduction, you will be notified immediately via email. This gives you up to the minute info on new listings and recent price reductions that relate to you and your needs. You may get 2 emails a day with new listings. From these MLS emails we will work to compile a list of homes that we can tour and get our feet wet. This gives you a little preview into the second part of the 5 part article, defining the type and location of your home.

It is further important to become loan approved so that we aren’t spinning our wheels in the wrong price range. If you start to see homes that are 100K more than you can afford, once we get you back down into the range that you are approved for, there will be a great deal of disappointment, taking the excitement right out of buying your home. If we look to low, then you don’t know what you are missing in a nicer neighborhood or school district. We can be precise and informed when you are loan approved making the entire process easier for you!

It is important for people who have recently become divorced to be loan approved as financial situations change a great deal and effect the price ranges more than you might realize.

It is important to become loan approved if you haven’t sold your home and plan to buy another before selling. Sometimes this is impossible and you must or want to sell first. It is best to know what you can and cannot do. Many people find out that they need to sell before they can buy in the price range they desire. Others find that they can buy without selling (although risky.)

It is important to become loan approved if you are considering buying a second property that you may not live in or live in part time. Rates are different for these property purchases, and many require higher down payments, so this could considerably affect your purchasing power for your second home.

Many people have no idea what their credit scores are and thus get a better or worse rate when they finally speak to a lender.

Now a little more on a local lender. It is absolutely KEY to the Preferred Buyers Program and your overall experience of purchasing a home to use a local lender in Cincinnati or Northern Kentucky. There are so many regional differences in tax and transfer laws, local traditions as they relate to who pays what in closing costs (See article on typical Closing Costs here), and which local title companies do the best job closing the loans that a local lender will ensure a smooth process. The lenders that I refer have proven themselves through experience with my clients to provide excellent knowledge and service for my clients. I ONLY recommend lenders who I have worked with before, who my clients have raved about, and who have provided the type of service to my clients that I give them myself. I have seen internet lenders fail to have the concern or attention to detail that my trusted local lenders do. I have seen out of state lenders and internet lenders fail to make sure their customer, the buyer, lock in on a rate in a timely fashion costing them thousands of dollars during the life of their loan. I have seen these out of town lenders fail to insist upon an appraisal to make sure the buyer isn’t paying more than the property is worth. I have seen out of town lenders not quote taxes correctly to the buyer and thus approved the buyer for the wrong purchase amount, based on a $300 a month tax bill. Once this was found, the buyer could no longer afford to buy the home that they had already negotiated and paid for a home inspection on etc. Wasting time and money of their “client”? The out of town lenders do not feel the obligation to service you well or get you a great deal or give you the benefit of the doubt like my local lenders do, because they will never see you or me again. My local network will guarantee excellent service, tireless attention to detail, direct contact numbers and communication with you and me, your Realtor. They know that if they don’t provide excellent service, they will not be hearing from me or my clients again. Local lenders will allow me to help you with the small details of the loan process while you are busy at work with more pressing issues. Choosing a local lender is the best possible decision you can make, and key in the home buying process.

The more informed we are at this first step, the foundation, of the Home Buying Process, the better the entire experience will be! I have proven this method time and time again, be the next to buy a home with me!

In my next article we will move on to the second key part of the Home Buying Process, defining the type and location of your home.

• Closing Documents , Financing , Lending , Listing , Pre-Approval , Sellers
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Amy August 14th, 2007

Ask St. Joseph to help you sell your house? Have you heard about how sellers are praying to St. Joseph to help them sell their homes? Here in heavily Catholic Cincinnati, Ohio, it is common practice for home sellers and many Realtors to employ the good works of St. Joseph to help sell Real Estate during this difficult buyers market.

Although this was not a chapter in my education towards becoming a Certified Residential Specialist, so many of my sellers have told me that they have buried St. Joseph and said their prayers to help me sell their Real Estate. A recent seller, who had had her home on the market for more than 6 months with another Realtor, then switched to work with me, buried the St. Joseph a few weeks after I committed to selling their home. It worked! They sold their house in just 34 days! I’d like to think my marketing and positioning helped, and they agreed, but did not think twice about getting extra help from St. Joseph.

Don’t know much about this catholic strategy to selling real estate? Read on to learn more. Perhaps this can aid you in your sales as well. If it doesn’t work immediately , give me a call and we will see if we can freshen up your listing with creative marketing to develop some new interest!

A history:
Saint Joseph is petitioned by many conservative Catholics as one who grants an easy death, but in the wider world of Catholic folk-magic, he is the Patron Saint of real estate matters and home sales. The reason given for this belief is that he was a carpenter who taught his step-son Jesus the carpentering trade, and he always saw to it that Jesus was well housed.

The custom of burying a statue of Saint Joseph upside down in the yard while one’s house is for sale goes back to the 1930’s in the United States.

The picture of Saint Joseph shown here is a detail from a typical holy card and shows the Saint at his carpenter’s work bench, holding the infant Jesus. On the work bench is a carpenter’s try-square and a wooden box plane; the bench is also outfitted with a vise. Saint Joseph holds a long stalk of Lily flowers in the crook of his left arm.

The following is the text of a real estate prayer to Saint Joseph:

PRAYER TO SAINT JOSEPH FOR SELLING A HOUSE
O, Saint Joseph,
you who taught our Lord
the carpenter’s trade,
and saw to it
that he was always properly housed,
hear my earnest plea.

I want you to help me now
as you helped your foster-child Jesus,
and as you have helped many others
in the matter of housing.

I wish to sell this [house/property]
quickly, easily, and profitably
and I implore you to grant my wish
by bringing me a good buyer,
one who is eager, compliant, and honest,
and by letting nothing impede the
rapid conclusion of the sale.

Dear Saint Joseph,
I know you would do this for me
out of the goodness of your heart
and in your own good time,
but my need is very great now
and so I must make you hurry
on my behalf.

Saint Joseph, I am going to place you
in a difficult position
with your head in darkness
and you will suffer as our Lord suffered,
until this [house/property] is sold.

Then, Saint Joseph, i swear
before the cross and God Almighty,
that i will redeem you
and you will receive my gratitude
and a place of honor in my home.

Amen.

Now take up the statue of Saint Joseph and dig a hole in your back yard. If there is no back yard, use the front yard. If there is no yard at all, dig a hole in a large potted plant. Bury the statue upside down, head downward, facing east, in the hole and cover it over.

When the property sells, you MUST dig up the statue, clean it, and carry it with you to your new home, where it should be kept in a place of honor.

Just last week, I buried St. Joseph at a property I am working very hard to sell! Along with a fresh marketing blitz, I thought that St. Joseph could help us see the sale through. If you or a friend are looking for a great home in Mt. Washington on a private cul-de-sac street, check out the photos of our latest St. Joseph sighting.

Links and Resources

• View photos of this home.
• Read more about this home.

• Listing , Sellers
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Mike August 2nd, 2007

This has been a crazy summer with so many sales, and so many inspections, I thought an article on water heaters might come in handy. My most knowledgeable inspector Mike Patton has shed some light on some common issues with water heaters, and expansion tanks. A condo I had for sale this summer had the smelly water issue, and it was simply remedied with a new water heater, and the smell was gone. I hope this helps anyone with water heater questions or issues. Mikes thoughts are below…
Several customers have asked about water heaters, problems, and concerns associated with them. Keep in mind that I am a Licensed Home Inspector and not a licensed plumber or code enforcement agent so I will answer to the best of my knowledge and the general findings form researching these items. The one comment is that code enforcement various form location to location. As a general statement, most of the components discussed are available to the general homeowner, but I will caution you to have a licensed plumber perform work or replacement of a water heater.

In general, water heaters appear to last approximately thirteen years in the Greater Cincinnati area. This may be reduced if the system uses a private water source such as a well. Gas water heaters also seem to last a little longer than an electric unit.

The general anatomy of a water heater is the heating source, gas burner or electric elements, tank, cold water shut off valve, drain valve, temperature and pressure relief valve (T&P), sacrificial anode, thermostat, flue (if gas) and expansion tank.

The most common problem encountered with existing water heaters is a leaky T&P valve; these valves are to prevent excessive pressure or temperature within the tank. In the event the pressure and or temperature exceed the design rating, the T&P valve opens automatically. The valve will not close automatically, in this case, water continues to run out of the tank, and flooding can occur. Due to this valve, automatically opening and discharging hot water these valves are to have a discharge pipe that extends to within 6� of the floor. These discharge pipes can also feed into a drain.

Another common problem with existing water heater is strong odors emitted when the water is run. This is commonly where the sacrificial anode comes into play. The anode is commonly made of magnesium and or aluminum, zinc and other combinations or specific metals. The anode when deteriorated (the anode has to be removed to inspect the condition) no longer attracts corrosive elements and the water will begin to have anode or. Replacement of the anode is sometimes an easy process verse in some units it is part of the hot water discharge pipe (plastic lined tanks).

In homes that have been vacant for a period of time and the water has not been circulated through the hot water tank an odor may be present that is caused by bacteria. In this case, the age of the water tank is not a factor, this may happen in an old tank or one less than a year old. Different resources suggest using chlorine bleach or peroxide to eliminate this bacteria and the associated odor. Different resources describe how to introduce the peroxide into the system to accomplish this, most agree that using the peroxide is much safer than using chlorine bleach. A link that describes this process quite well is http://www.smellywater.com/

Expansion tanks are the small tanks located on the cold water supply commonly near the water heater, these tanks appear to be similar to a small propane tank used for a gas grill. When a backflow device is present either within the home or at the meter a closed loop system is present and an expansion tank is needed. Without an expansion tank the in a closed loop system the T&P valve will commonly leak, water faucets drip, water hammering and other items fail more quickly. Water expands when it is heated, as an example water heated in a 40-gallon water tank from 90 degrees F to 140 degrees F the water will expand nearly one-half gallon. The tank is intended to absorb the expansion created when the water is heated. In older systems where a backflow device is not present an expansion tank is not needed due to the pressure is absorbed by the main water supply, the exception to this is if the pressure is above 85 PSF. It is considered good practice to install a water expansion tank when installing a new water heater, most of the local municipal water systems are now using meters with back flow prevention, and these are primarily to protect the quality of the municipal water supply.

As a safety note, I recommend inspecting your gas water heaters flue on a regular bases, if the flue has rust or pinholes it should be replaced immediately. Poor venting is often identified by excessive deposits of white material found near the bonnet or below a bad joint in the flue. If you suspect poor venting, I recommend having a licensed plumber or heating and cooling contractor inspect further and determine if a repair is needed or even if the flue is currently blocked. Keep in mind a poorly vented gas appliance is a carbon monoxide hazard and can be deadly.

In closing, I recommend that if you are installing a new water heater have it inspected by the local code enforcement agency, this will commonly cost you less than $50 and is an excellent safety measure. In the Cincinnati area and Northern KY, code enforcement agents state that all water heaters installed are to be inspected regardless of if a contractor or a homeowner installs it. As always, I recommend that for specific technical questions or concerns associated with plumbing systems that you contact a licensed plumber.

Michael Patton is a Licensed Home Inspector and the owner operator of AA Home Inspection LLC located in Northern Kentucky. Michael is licensed in Kentucky and Indiana and qualified to perform inspections in Ohio (Ohio does not have a licensing requirement). Michael is the current President of the Kentucky Real Estate Inspectors Association Inc. (KREIA) and an active member of the American Society of Home Inspectors (ASHI). Michael started AA Home Inspection LLC in 2001, prior to this Michael had worked for firms providing a wide range of services including design, construction, and project management. Michael’s services include Residential Home Inspections, Light Commercial Inspections, WDI/Termite Inspections, and Radon Testing. The Greater Cincinnati area provides a wide variety of inspections; from the million dollar properties to the fixer upper homes, new construction to homes well over one hundred years old and clients from the well established to the first time homebuyers.

www.AAHomeInspection.net

• Buyers , Inspections , Sellers
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Amy August 2nd, 2007

Transferring utilities is something ost people forget when all of the other aspects of moving and buying a house are at the front of their minds.

You will want to schedule these utility moves for the day of closing.  Both water and electric need to get a final meter reading.  Usually there is an exterior water reader, H20 Water sent via radio waves, but Duke Energy usually needs to get into the house in the Hyde Park areas, in the older homes.  They will tell you on the phone if this is the case, and we will need to arrange to have a door left open for them (they also often have keys to the side basement doors).  This is the best way to handle it.  They only give service windows from 8-4 and that is impractical for most people to wait that long.  So, if you are a seller, arrange to have the door open on the transfer day.  If you are the buyer, and Duke tells you they need access, tell them the door will be left open (if they don’t have their own key) and CALL ME to inform me and I will call the seller’s agent to make sure we have the door open!

The Gas and Electric Company, Duke Energy, can be reached at 421-9500.  They will need to get a call from the seller of the house saying they are moving, and then they can allow the buyer to input their info and take on the bill.  Don’t cut it off, just transfer.  It costs the people moving in more money if you turn it off.  The best thing to do is to transfer.

The Cincinnati Water Works can be reached at 591-7700.  They can usually read this from outside.

These are the most important to your move, having lights, AC or heat and water!  You can handle cable/internet and phone once you are there.  As for a Security System, you must have a land line in your house in order for any security system that I know of to work, as it has to be able to call the Police.

Let me know if you have any questions!  This can be done in advance, so you don’t forget or about a week prior to closing!

If you would like more info on local Cincinnati Area utilities, just click here and scroll down the page.

• Buyers , Closing , Sellers
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Amy July 23rd, 2007

First Impressions are vital to your buyers, as they can just drive right by and never look inside, let’s talk about the exterior of your home and making
the best first impression:

1. Spruce up the font entrance. A coat of paint on the door; brass accents such as house numbers, a doorknob, and a kick plate all shine and make a spectacular first impression. Put potted flowering plants by the front door. Give shutters and front porch a flesh coat of paint. A window box full of flowers is an inexpensive way to add an accent of color to your home’s exterior. Pruned bushes and blooming plants can help your home make a good first impression. Don’t be afraid to use fake flowers like pansies and mums if you will not be able to keep the flowers vibrant and alive. Buy a new large doormat.

2. If you have a deck, patio, porch or other outdoor entertainment area such as a pool or hot tub, make the most of them. Keep these areas, as well as your backyard, clean and clutter-free; put debris in covered trashcans.

3. Install outdoor lighting that properly illuminates your entrances, walkways, and drive. Turn on all those outdoor lights when your home is being shown.

Continue Reading »

• Home Improvement , Sellers
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Amy April 14th, 2007

Real Estate is an Investment in Mount Lookout, Hyde Park, Oakley and East Cincinnati

Cincinnati Real Estate is an exciting industry, or hobby, depending on your current occupation. For me, it is both, as I am a Full Time, Resident Realtor, with a focus on Mt. Lookout, Hyde Park and Oakley, and the East side of Cincinnati in general. As a Certified Residential Specialist as well as a Hyde Park area resident, I find the numbers I am about to show you as vital as the air we breathe. I don’t think I have been involved in a conversation in a social setting in the last two years where the Real Estate market wasn’t a large topic amongst my local friends and acquaintances, in the midst of buying or selling in this market.

It is somewhat of a buyers market still, I would venture to call it a Price Correction Period, but even with that, we are seeing great appreciation figures over 5, 3 and 2 years after purchase. Let me show you some specific information that was compiled through several MLS searches I run on a regular basis to help me and my buyers and sellers understand the current market.

This information was complied through the use of the Cincinnati MLS, creating a 90 day snapshot of the local market, and later in the article, a look 5 years back at the average increase in values over time. I hope you will find this information informative and unique, and should you have any additional questions, you can reach me. See each of these charts attached to this blog, the first pertains to the Market Analysis and is called Q1 Area Numbers, and the second group of figures can be found in 2006 Area Appreciation.

Mount Lookout Local Market Analysis and Absorption Rate

In the last 90 days the Mount Lookout market has seen 127 homes go on the market, sell or go pending. Of those 127, 35 were sold in the last 90 days, 20 are pending a closing and 72 remain for sale today. The average home sold in Mt. Lookout is priced at 466,475 and the average sold home sells for 323,932. The average home has 3 bedrooms, 2.97 bathrooms and remains on the market for an average of 73 days. 54% of the time, homes in Mt. Lookout sell in less than 30 days, at about 95% of their list price.

Let’s take a look at what these numbers mean to you, the Mt. Lookout seller. Based on the figures above, 18 homes go under contract each month in Mt. Lookout. If there are 127 people in line to sell their homes, and 18 go under contract each month, there is a 3.9 month supply of homes on the market in Mt. Lookout. This means that if no other homes come onto the market, it will take your Mt. Lookout home about 3.9 months to go under contract on the long end, 73 days average, and 54% of the time in 30 days or less, giving your home a 25.5% chance of selling in 30 days.

Hyde Park Local Market Analysis and Absorption Rate

Hyde Park remains to be the solid anchor keeping Mount Lookout and Oakley planted in strong Real Estate Values and Sales in Cincinnati. In my recent assessment of the Real Estate of these three beloved cities of Cincinnati I have always found most consistent the Hyde Park area.

In the last 90 days, Hyde Park has had 195 homes enter the market. Of these 195, 49 have sold, 26 have pending contracts, and a remaining 120 are still for sale. In Hyde Park the average list price is $466,218 almost identical with Mount Lookout, but in Hyde Park the average Sale price is $511,250. The average days on the market for these Hyde Park homes are 83 days. In Hyde Park 44% of the homes sell in 30 days or less, with 24% taking more than 120 days to sell. The average list to sale price percentage in homes selling in Hyde Park is 91%. The average Hyde Park home has 4 bedrooms, and 2.86 bathrooms.

Let me put these numbers into perspective for the Hyde Park seller. This means that of those 195 sellers, 25 of them go under contract each month. If there are 195 people in line to sell their homes, and 25 go under contract each month, there is a 4.8 month supply of homes on the market in Hyde Park. This means that if no other homes come onto the market, it will take your Hyde Park home about 4.8 months to go under contract on the long end, 83 days average, and 44% of the time in 30 days or less, giving your home a 20.8% chance of selling in the next 30 days.

Oakley Local Market Analysis and Absorption Rate

Oakley is known in the Hyde Park area as the starter home neighborhood. The average home prices are lower, but the return on investment beats both Mt Lookout and Hyde Park in a 5 year period! The homes are generally a bit smaller than the neighboring two areas, and therefore, its resident’s tend to move up to the Hyde Park and Mt. Lookout area as their families begin to grow! Not too many people desire to leave our little triangle where shopping, restaurants and parks are so convenient and friendly; you just can’t imagine living anywhere else!

In the last 90 days the Oakley market has seen 124 homes go on the market, sell or go pending. Of those 123, 42 were sold in the last 90 days, 23 are pending a closing and 59 remain for sale today. The average home sold in Oakley is priced at $197,703 and the average sold home sells for $184,368. The average home has 3 bedrooms, 1.73 bathrooms and remains on the market for an average of 71 days. 30% of the time, homes in Oakley sell in less than 30 days, at about 94% of their list price, and another 28% take more than 120 days to sell, at about the same 94% of their list price.

Taking Hyde Park, Mt. Lookout and Oakley under the same umbrella, the Oakley market is much different from its bordered areas, for the better and for the worse. In Oakley, we see more first time buyers finding some great homes with wonderful appreciation rates. The average sale at $184 is an excellent price point for the first time buyer.

Let’s take a look at what these numbers mean to you, the Oakley seller. Based on the figures above, 21 homes go under contract each month in Oakley. If there are 124 people in line to sell their homes, and 21 go under contract each month, there is a 2.7 month supply of homes on the market in Oakley. This means that if no other homes come onto the market, it will take your Oakley home about 2.7 months to go under contract on the long end, 71 days average, and 30% of the time in 30 days or less, giving your home a 36.7% chance of selling in 30 days. More people can afford the average price of the homes, therefore more people will be able to buy, and more do in Oakley!

Entire East Cincinnati Local Market Analysis and Absorption Rate

In the last 90 days the East Cincinnati market has seen 4092 homes go on the market, sell or go pending. Of those 4092, 866 were sold in the last 90 days, 618 are pending a closing and 2608 remain for sale today. The average home sold in East Cincinnati is priced at $323,651 and the average sold home sells for $226,599. The average home has 3 bedrooms, 2.56 bathrooms and remains on the market for an average of 88 days. 35% of the time, homes in East Cincinnati sell in less than 30 days, at about 96% of their list price.

Let’s take a look at what these numbers mean to you, the East Cincinnati seller. Based on the figures above, 494 homes go under contract each month in East Cincinnati. If there are 4092 people in line to sell their homes, and 494 go under contract each month, there is a 5.3 month supply of homes on the market in East Cincinnati. This means that if no other homes come onto the market, it will take your East Cincinnati home about 5.3 months to go under contract on the long end, 88 days average, and 35% of the time in 30 days or less, giving your home a 19% chance of selling in 30 days.

In the areas that I concentrate on servicing, Hyde Park, Mt Lookout and Oakley, the market data shows a shorter time to sale, as well as a higher list to sale ratio, with a higher chance of selling in the next 30 days.

Cincinnati is always a conservative city, even in the Real Estate Market

Believe me when I say these numbers are great compared to other areas of Cincinnati and the USA. The actual buyers market is defined as when the supply of homes is more than 6 months in a given market. As you will see in the Hyde Park areas including Mt. Lookout, Oakley and in East Cincinnati, we are all under this 6 month supply. This is great news, but, we are still in a depressed market. We are just smart about it.

This Real Estate market that we are in today is about correcting the abundance of appreciation we have been seeing on the homes in this area. In California and New York where Real Estate was in a tremendous boom, selling 2 bedroom 2 bath flats for $800,000 in the early 2000’s have now plummeted to $400,000 or less is in much more of a stressed market correction. Being that the areas of Mt. Lookout, Oakley and Hyde Park are one of the better appreciating areas of Cincinnati, we feel this price correction a little more than the whole of Cincinnati, similar to California and NY feel it stronger than the rest of the US. In the past, we have thrived on selling our homes for $50,000 to $100,000 more than we purchased for a few years ago, getting our price and moving on. Today, it is not that way. Experiencing our own correction, in Mount Lookout, Hyde Park and Oakley, we need to be mindful of value, we are not getting the tremendous margins of appreciation we were seeing in the late 90’s early 2000’s, but we are holding our own much better than other areas of Cincinnati. So while we aren’t making as much as we did in the past, or we would like to be making on the sale of our homes, we are still ahead of most of the 100 other suburbs in the area in our return on investment. Compare these numbers below with the 2 year return on your Proctor and Gamble stock at 14.5%, or your Fifth Third stock at -11.6% of the S&P500 up 21%, all beat by our local Real Estate appreciation!

Mount Lookout Real Estate Appreciation and Return on Investment

Mount Lookout is the #7 area in Cincinnati for return on investment over a 5 year period with 39% return, and it is #6 in Cincinnati for highest average sale price at $387,511 in 2006. Mt. Lookout’s latest 3 year return on investment percentage is a strong 32%, and in 2 years, 25%.

Hyde Park Real Estate Appreciation and Return on Investment

Hyde Park is the #10 area in Cincinnati for return on investment over a 5 year period with 33% return, and it is #5 in Cincinnati for highest average sale price at $408,247 in 2006. Hyde Park’s latest 3 year return on investment percentage is a strong 41%, and in 2 years, 12%.

Oakley Real Estate Appreciation and Return on Investment

Oakley is the #6 area in Cincinnati for return on investment over a 5 year period with 40% return (beating out Mt. Lookout and Hyde Park). But, in converse, it is #28 in Cincinnati for highest average sale price at $191,721 in 2006. Oakley’s latest 3 year return on investment percentage is a strong 29%, and in 2 years, 12

Each of these three areas are clearly a great area to invest in your home for a long or short term.

Hamilton County Real Estate Appreciation and Return on Investment

Compare the numbers for the above areas to those of Hamilton County as a whole, where the average home sale in 2006 was $181,206. The five year appreciation in the entire Hamilton county was 8% followed by 5% for 3 years and 2% for 2 years. As you can see the Mt. Lookout, Oakley and Hyde Park areas provide a better return on your investment than the whole of Hamilton County.

Amy Broghamer, an Expert Realtor, will advise you to make the best Investment based on your goals

As a Certified Residential Specialist, I am trained and educated in analyzing the market the way no part time or new Realtor knows. I not only assess the market in the ways I have shared with you today, but countless other aspects of the area and home are taken into consideration when I price a home for sale, or help a buyer decide on an offer price in this area. What all buyers want to know #1, is this a good investment of my money and time, obviously in Mt. Lookout, Hyde Park and Oakley, the answer is YES!

If you would like more information on the Mount Lookout, Hyde Park Oakley or other East Cincinnati areas, home sales, or an idea of what your home might sell for in today’s market, give me a call and I will be happy to give you specific details of your home today’s market, where ever you might be living/investing!

• Buyers , Hyde Park , Mount Lookout , Oakley , Resale , Sellers , Trends , Value
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Amy March 27th, 2007

Very often when working with buyer clients, I find they want to know why they should be thinking about resale, before they have even purchased a home. In this economy of the 21st century people are buying and selling Real Estate on the average of 2-5 years (ages 23-40), and even more often if they are just climbing the corporate ladder and are in for many relocations in a shorter period of time. This being said, in many cities in the US, with a few in the Cincinnati area, there is little to no appreciation in just 2 years time, and depending on the market, there may be even less. It’s all about your investment. That down payment you choose to invest in your primary residence. Say you buy a home for $300K and you put (these days a rare) 20% down or 60K. That is your investment. Keep the house maintained and updated, modern and you may get more than 60K back when you sell.

Then, I begin to point out some of the finer details of the concept of resale, functionality. I encourage my buyers to look for things in homes that are appealing to a wide range of people. I will use a typical example of a half-bath on the first floor in the Hyde Park area for this exercise on resale. In Hyde Park, to have a half bath on the first floor may not be a priority when you begin looking in Hyde Park for a home. But, if you buy that home, without a half bath, and put one in if it is possible, you have just added value to your 60K investment. More importantly, you have made it more desirable to the next buyer who will always see the half-bath on the first floor in Hyde Park a huge perk, thus selling your home much faster than others. Resale!

Say you choose not to add that same half-bath, and you live there for 5 years. All of your neighbors and other homes in the similar area and price range have “updated” their homes with the modern convenience of the half-bath and you have not. Do you think your home on the resale market will sell faster and for more than your original 90K investment? In these sub-modern conditions compared to other homes that are updated in this price range, the answer would be no.

While I am not discouraging you from buying a home that needs a half-bath, or updated kitchen, or new garage, I prefer to use these outdated homes to allow my buyers to get a good price for their condition, and allow them to capitalize on these things and turn them around to become an opportunity to create some additional value when they themselves add these items to their home.

I prefer to educate my clients on the benefits of resale and keeping the home modern and maintained. Just as you are the buyer choosing your new home, would you expect to play less for a home with a 30 year old kitchen? Yes! But you could buy that home at a reduced rate due to the age of the kitchen, put your money saved into the upgrade, and make it new and beautiful, and when you go to sell, you have a fabulous kitchen that you have enjoyed while you have lived in the house, and your home will sell faster and hopefully for more money because you updated it! This concept is referred to as “Sweat equity” - making improvements yourself that hope to directly increase the value of your property. If you cannot make these necessary updates, you cannot expect to make more money when you sell the house if you have not invested yourself to modernize and maintain the house. It will also add months to the sale process for a home that has not been updated.

These things inside the home are important functionally. Now let’s look at socially. When you invest in Real Estate you need to understand where the demand is in your city. Where do people want to live and play? Buy a home there. If your goal is to have a great return on your home, buy in an area that others want to live, which will bring a faster sale for more money. If you buy 30 minutes from the city, know it will take quite a bit longer to sell the home and your margin of profit will be less, this is the rule of supply and demand.

Lastly, consider economic resale. This often parallels social in that the demanding areas usually have a higher Return on Investment, less days on the market, closer to asking price for the homes, and a higher percentage of appreciation annually.

For all these reasons, it is key to consider resale before your current home purchase, to protect your investment. That is, assuming that you want to make money on your largest asset, and sell it quickly, with the least disruption in your families lives!

If you are in the market to sell your home, and wish to talk to ME about getting the best Return on your Investment, give me a call anytime at 377-3637.

If you would like to know what you can do to increase the value of your investment in a few years when you will sell, call ME today and I will be happy to stop by your home and give you a few suggestions, give me a call anytime at 377-3637.

If you would like to buy a home with a strong Return on Investment, give me a call today and I will lead you in the right direction to turn your home into your largest asset and investment, call me anytime at 377-3637.

• Buyers , Improvements , Resale , Sellers , Value
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Amy March 21st, 2007

This is a question that often occurs during the time leading up to the closing, or while sitting in the closing room, signing your life away. As and ABR, I work hard to educate my clients to the importance of protecting your own investment, while the bank REQUIRES you to pay to protect their investment. I recommend buying title insurance to protect the money you have in the house the day you buy it, or your down payment, and to protect the equity you gain as you live and improve your homes over the years.

If something was found incorrect with the title while you have lived and owned your property, you could lose all of the equity you built, and only the principal you owe on your loan is protected, your cash investment is not. In Cincinnati and Northern Kentucky this story hits home more than other areas, when a now famous builder Bill Erpenbeck was creating major title issues. Many of the clients of Mr. Erpenbeck lost their homes which they paid cash for, due to his illegal title activities. If they would have purchased title insurance the day they closed on that loan, they would still own their homes and all the equity or cash they had in it.

Since I am asked by my clients about why they should spend another amount similar to their home owners insurance premium while they are signing their next 30 years away to principal and interest, I say “so that you are sure that all that principal you pay in over the next 30 years will be put back in your pocket when you sell! If the bank requires you to buy this for them, shouldn’t you protect yourself, in addition to the bank?”

My trusted legal adviser and local Attorney with Classic Title addresses these issues in a more formal way just below…

As memories of Erpenbeck slowly fade into the recesses of our mind, it is very easy to forget about the problems lurking in our titles and what we can do to protect ourselves and equally important, our clients.

As you may or may not know, very little protection is offered by the sellers’ deed of general warranty deed and lender’s who require no title insurance whatsoever. Of course, the only logical alternative is the owner’s policy of title insurance and what follows is a summary of some of the major things you should keep in mind:

• What makes title insurance different from other forms of insurance? Title insurance protects the policy holder from adverse things that occurred in the past unlike health, life, home and car insurance that insure against future events. That protection runs from the date the policy is issued and covers all matters of title not excepted in the policy back in time through the chain of title. (Keep in mind that under Ohio’s Marketable Title Act, defects in a chain of title older than 40 years are normally no longer considered defects)
• What makes a title defective? The limitations of space for this article do not permit me to list all of the defects that may render a title unmarketable. There could be a complete failure of title as when the deed to the present presumed “owner” is defective, such as where the grantor who executed the deed is under 18 years of age, incompetent, and signs the deed anyway. (Even the best title examiner will not normally be able to ascertain the age of the grantor from merely looking at the public record, nor the competency of the grantor (sometimes there will be an official declaration of incompetence in the Probate Court records but the signer may be from another county or jurisdiction) Or consider the case where the seller signs the deed without the spouse’s signature thereby creating a cloud on the title to the extent of the non-signing spouse’s “dower” interest.
• What types of title insurance policies are there? Essentially you will encounter two (2) types of policies: (a) lender’s or mortgagee policy which insures the lender up to the amount of the present principal balance of the loan (remember that most loan balances decrease due to normal amortization of principal(except the “interest only loans” that comprised about 30% of all loans made last year). It is this decreasing loan balance and coverage which causes the premium to be much less than the owner’s policies as the insurance company liability decreases with the loan balance. (b)owner’s policy which insures the policy holder up to the policy amount with no decrease in coverage and there are now enhanced owner’s policies which contain inflation riders so the coverage increases over time in pace with inflation. These policies are slightly more expensive as a result.
• What or who determines the cost of title insurance? All premiums are established by the individual title insurance companies (underwriters)who publish these rates with the Ohio Department of Insurance with the result that all the filed rates in Ohio are identical (meaning no title company can charge more or less for the premiums, but may charge more or less for the related services such as title exam, document preparation and closing)
• What is “simultaneous issue credit”? Remember in real estate to read the label and by doing so it is easy to remember that with this question, in Ohio, if you purchase an owner’s policy at closing or within thirty (30) days the cost of the owner’s policy is offset by the amount of the lender’s policy. Consequently, for a sum comparable to the homeowner’s warranty a buyer can get an owner’s policy of title insurance that is a one-time premium with all of the important protections offered.

Terrance R. Monnie @ Classic Title Agency, LLC
Email: Terry@ClassicTitle.com or 513-256-4779

• Buyers , Closing , Closing Documents , Real Estate Law , Sellers
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Amy March 10th, 2007

The HUD Statement

Whether I am working with a first time buyer or seller, I am always asked ‘What are typical closing costs for selling or buying a home?’

For buyers, a great deal depends on your down payment, and the day of the month you close the loan. There are less pre-paid costs towards the end of the month. With taxes, depending on the month of the year, you may be asked to escrow very little money for taxes, or up to 8 months.

For the seller, the costs are more predictable, except if you have agreed to pay closing costs for the buyer.

I have included a sample HUD-1 Settlement Statement, required by the government to document the costs when closing on a loan. The Department of Housing and Urban Development formulates a Settlement Statement or HUD-1. This HUD-1 Serves as your final accounting of all of the costs that are associated with your home purchase or sale. This document is required by law and should be given to your tax person the year you close on your home.This document is usually issued to you between 3 days to 1 hour prior to the closing. The law says you must have a copy 24 hours prior to closings. Depending on your lender and title company, this does not always happen. For this reason, I prefer to use the services of Guardian and Classic Title to make sure that we have the correct statements within 24 hours of the closing. They do a great job, and I always recommend their services for an uneventful and smooth closing.

Classic Title has been generous enough to prepare for you an example HUD-1 Statement (PDF) with an explanation provided by Terry Monnie one of Cincinnati’s best Real Estate Attorneys. You may find it most helpful to print out the HUD-1 and note the sections as you read through the blog article and its annotations. This is not a simple legal document to navigate on the screen.

The HUD-1 Settlement Statement Explained

• General: The federal government through its various agencies requires (pursuant to the ‘Real Estate Settlement & Procedures Act (RESPA), that all 1-4 family residential closing transactions involving a lender utilize the HUD-1 Settlement Statement (HUD-1). This document is supposed to reflect the terms of the Contract to Purchase between the parties.
• HUD 1 Explained:
  • There are two sides to the HUD 1, the left for the purchaser and the right for the seller and the second page reflects subtotals from Page 1.
  • Lines 100 and 400 reflect the purchase/sale price, and if you note, Lines 102 and 402 include “personal propertyâ€?. Most mortgage lenders are very sensitive to having items of personal property included in a loan transaction since they are limited to making loans on real property alone. (Many contracts will state that even though the sale includes a stove or refrigerator, they will not be assigned any value)
  • Line 103 lists the total of all the ‘settlement charges’ which are listed on the buyer’s side of Page 2 (total being shown at Line 1400).
  • Lines 106-108 will often show as owing by Purchaser and a credit to Seller for seller prepaid taxes or HOA fees as in this case.
  • Lines 120 and 420 reflect total sums owing by Purchaser and amounts owing to Seller. (Do you see the pattern-each side reflects the other in most instances to this point). What follows are credits to the purchaser and deductions to the seller’s side.
  • Line 201 is the earnest money paid by the Purchaser at the time of contract signing and this normally will be held by the Realtor, in this case, Amy Broghamer @RE/MAX Unlimited, in her broker’s trust account pending closing. At the time of closing, this earnest money deposit of $2,000 will be retained by the Realtor and the balance of commission will be taken from the Seller’s proceeds. (See Line 702 Seller’s side on Page 2)
  • Look at Lines 211 and 511. This is the tax proration credit section and arguably the most misunderstood portion of the HUD 1. Why? Because, in Ohio, taxes are paid in arrears and there are two tax bills every year, one half being paid as the December bill and the other half paid in June. (the time period to pay these bills will vary from county to county). Now’s the tricky part. Each tax bill, when paid, pays a tax period six months in arrears. For instance, the December tax bill 2006 pays taxes in arrears for the tax period, January 1, 2006, through and including June 30, 2006. Consequently, if the closing is 3-25-07 and the most recent tax bill has been paid (remember the December 2006 bill), taxes are only paid through June 30, 2006. Most contracts provide that the seller will give the purchaser a credit from the paid through date (6-30-06) through the date of closing (3-25-07) and that is what is reflected on Lines 211 and 511. Easy, huh? Now that this has been clarified I have to tell you that in certain areas of Ohio (Montgomery, Greene and certain parts of northern Warren County, the local practice is to use a ‘short proration’ method) If you closed in those areas, the tax proration credit to the purchaser would only be the period 1-1-07 through 3-25-07. Your Realtor will be familiar with local custom.
  • Line 303 will then reflect the total owing by purchaser less any credits or the amount the purchaser will have to bring to closing. * A word of caution here. Under Ohio’s “Good Funds Lawâ€?, closing/title companies are not allowed to accept any sum in excess of $1,000 at closing unless it is in the form of a certified or cashier’s check. You may either make the check payable to yourselves and endorse it to the title company at closing or make it payable to the title company.
  • Note that on the seller’s side, Lines 500-519 reflect all the deductions from the seller’s proceeds with Line 502 being all the deductions from Page 2. (Line 504 shows the amount of the seller’s mortgage loan payoff, and keep in mind sellers, that most all loans are paid ‘interest in arrears’ so your payoff will include the principal balance and accrued interest to the date it is normally received by your lender.
    • For instance, this seller paid their March payment, 2007, and because interest is paid in arrears, this paid the interest from 2-1-07 through 2-28-07. Accordingly, interest is still owed from 3-1-07 through the date the lender actually receives the payoff.
    • Keep in mind that title companies have to insure that adequate monies are collected for this purpose and the payoff will normally include 3-5 days of interest and your lender will refund the excess.
    • Also keep in mind that the payoff statement will not include a credit for any monies you may have in your escrow account. These monies are handled separately and will usually be sent to seller 2-4 weeks after the loan is paid in full.
    • one last thing in this regard and that is that Ohio law requires lenders to cancel their paid in full loans within 60 days of their being paid off. Few comply with the law resulting in thousands of uncanceled liens which may cause you problems in the future. Both Amy Broghamer, and Classic Title recommend that you insist that you get a copy of the cancelled liens for your permanent files.
  • Page 2 of the HUD 1 reflects the subtotal of all the purchaser’s closing costs and related charges and the same for the seller.
    • The 700 series for the seller reflects the total commissions paid to the Realtor, in this instance, Amy Broghamer at RE/MAX Unlimited. Please note that the actual check written to the Realtor in Line 703 will be the amount shown in this column less the earnest money deposit that Amy has already deposited in her broker’s trust account.
    • The 800 series will reflect the closing costs owing to the lender by purchaser and these should reflect the “good faith settlement estimateâ€? that the lender is required to give to borrowers. There are normally variances in these numbers.
    • Line 901 will reflect the interest owing by purchaser from the date of closing through the end of the closing month. Then the first payment will normally be due the following first of the next month succeeding. Translated: Purchaser’s first payment will be due May 1, 2006 (interest in arrears).
    • If purchaser has agreed to or is required to establish an escrow account the initial deposit will be reflected in Lines 1001 through 1008. Direct your attention to Line 1008 “Aggregate Adjustment Analysisâ€?, a fancy label for a mandatory test that lenders and title companies must perform to insure that the minimum amount is placed in escrow since the lenders don’t normally pay interest on escrow monies.
      • If Line 1008 indicates 0.00, this means the test was performed and the correct amounts were escrowed.
      • If Line 1008 reflects a negative number this means that the test results mandated that too much was placed in escrow and the adjustment was made to insure compliance with this regulation.
      • Lines 1100 through 1113 reflect all the closing fees, including such things as:
        • Settlement of closing fee
        • Title Exam
        • Title Insurance Binder: (this is the fee that is required for the title company to issue any title insurance policy, either for the lender or for a purchaser buying an owner’s policy. (See attached article on title insurance). In this instance, the Seller has agreed to pay $795.13 towards the cost of the Purchaser’s title insurance premium and this is reflected in Line 1108. The contract to purchase has provisions for seller to pay a portion, all or none of this important coverage.
        • The 1200 series reflects the charges imposed for the title company to deliver and record the deed and/or mortgage.
        • On the seller’s side, Line 1202 reflects the conveyance or transfer fee that is required to be paid to the County Auditor and is normally $3.00 for every $1,000 of sale price plus 50 cents for each parcel.
        • There will also normally be a $75.00 charge to the seller to the attorney who prepared the deed.
        • Home warranty payments will be reflected on Lines 1303-5 or alternatively on Line 507 on Page 1.
        • Line 1400 reflects the subtotals of all the charges for both purchaser and seller and will be carried forward to the Page 1.

I hope you enjoyed this detailed explanation of the HUD-1 Statement by Terry Monnie. As we near the closing table for your sale or purchase, I will be talking with you regarding the HUD-1 for your property. In addition, the good people at Classic Title do an excellent job explaining this in a very similar way at the closing table, or prior to that via phone conference if you have questions, or think you may need a brush up before going to the closing table. As your Realtor, I review this as well to make sure that your Earnest Money has been credited, that any Home Owner Warranties, or Closing Costs that we negotiated being paid by the other party have been noted, and any other adjustments made in the contract were completed.

I hope this gives you SELLERS an idea and a method for calculating what your closing costs can be expected to be.

If you are a BUYER, your lender should issue you a Good Faith Estimate with an idea of what these closing costs will be when you make application for your loan. This is a requirement, and you should ask for a Good Faith Estimate if your lender is not providing one for you. This is only an Estimate and may change a bit from time to time as you wait for your loan to close or to lock in your rate.

To Contact Terry:

Terrance R. Monnie, Attorney at Law
Classic Title Agency, LLC
513-984-0440 or Terry@ClassicTitle.com

• Buyers , Closing , Closing Documents , Real Estate Law , Sellers
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