During a short sale, homeowners sell their house for less than the amount they owe on their mortgage loan and avoid the more damaging effects of foreclosure. Purchasing a short sale home can come with risks but can have a financial payoff if everything works in the buyer’s favor. We’d like to take you through some general information about short sale homes and why it’s often a less than ideal choice for most interested buyers.

With a home purchase you most likely have a lender and a realtor. However, by attempting to purchase a foreclosure or short sale, you are completely eliminating any work a realty team can do on your behalf. There is no negotiating with the bank, and no real communication is possible. Additionally, banks who own foreclosures or sell short sale homes are notoriously unresponsive. You may put in an offer on a property, only to have the bank wait 45 days to review all the offers. The bank then works with the one offer and MAY inform you on day 50 that your offer was not accepted. During this time, you cannot put an offer in on another property and you may even have to wait for response lag time to pull your offer if you want to make an offer on another home. Otherwise you could end up under contract for two houses. Meanwhile, you’ve lost invaluable time. You may have missed out on other properties you would have liked to buy, other opportunities, the start of a school year, job relocation, lease ending, sale of another home, etc.

If you are looking to move into a new home soon and are hoping to get a good deal on a short sale home, you may have to find temporary housing while you look. Consider that it may take 3-6 months (sometimes more, sometimes less) to close on a short sale home (versus approximately 30 days with the AmyBSells Team). And, a lot of things can happen to a neglected home while it sits for months. Which brings us to the overall condition of the home. Although the price of the home may be a great deal, be sure to factor in the potential work that needs to be done to make the house safe and livable. You may need to purchase new appliances, lighting fixtures, carpet, furnace, AC, cabinets, vanities, etc. in addition to fixing structural issues (think roof, termite damage, water damage, mold, etc.). And, there is no negotiating on the price to offset these potential expenses. You have to enter into the bidding with your highest and best price and hope that you beat out the other buyers and investors that likely have put in better offers. You only get one chance with the bank.

There may be additional fees that you wouldn’t have with a regular home purchase. The bank owning this property won’t pay any of your closing costs. They’re selling this to you at a discount, so that’s the only benefit you are getting. In contrast, my clients purchasing homes from traditional sellers are getting between $3,000 to $6,000 of seller paid closing costs! Think of the steps involved in any purchase, and imagine those steps complicated by bank ownership and lengthy home vacancy. You’ll have to do an inspection after your offer is accepted and before you move into the house. You’ll definitely have to pay for this inspection yourself, usually around $400. If the house is vacant — and they usually are — the utilities will be off. In order for the inspection to be done, you’ll have to pay the typical $60 fee to have the utilities turned back on (so the inspector can test them). If the previous owner was in debt on their utilities, you will have to pay the debt in order for the utilities to be turned back on for this address. This could be between $300 – $1500, depending on the situation.

If all of this sounds like it would be okay, then a short sale might be the right avenue to pursue. Many investors who are looking to flip houses find this the cheapest way to acquire something they can rebuild. But, if this doesn’t sound like it would work for you and your family, then a traditional sale might be the way for you to go. We recently took you through the steps of buying a home with the Amy B Sells Team. Click HERE to see the story and to read about our expertise and process and to learn what to expect with us. The Amy B Sells team is dedicated to making sure your entire buying experience is thorough, from A to Z. Even after you buy, we make sure that everything about your home and its investment is taken care of.

The Amy B Sells Team focuses on communication and service. To talk to someone on the team about buying a new home, contact Molly at 513-544-2231 or Molly@AmyBSells.com or by visiting the AmyBSells webpage HERE.

Related...

• February 9, 2012 -- How to Buy a House
• March 24, 2009 -- Cincinnati Fourth in Business Expansion
• May 3, 2012 -- Cincinnati Flying Pig Marathon
• April 24, 2012 -- Have Your Voice Heard – Brent Spence Bridge

Medical and dental professionals often have medical school debt and have unique challenges when it comes to securing a home loan. One of the many benefits of working with the AmyBSells Team is that they have a group of trusted partners to help guide you through the entire buying experience. One of those trusted partners is Drew Stacey at First Place Bank.

First Place Bank is one of the few banks in the country to offer special financing for doctors and it’s the only locally based company to make this offer. They offer 100% financing, up to $1,000,000, with 0% down. And, Drew Stacey will make sure that the loan is secured in an efficient amount of time.

With AmyBSells, you have go-to people that the Team already knows and trusts. With the turnkey team in place for medical residents, you’ll have a lender, a realtor, an inspector and anything needed to make the move quick and easy!

For more information, contact  Molly Eynon on the AmyBSells Team at 513-544-2231 or Molly@AmyBSells.com or by visiting the AmyBSells webpage HERE.  Or, contact Drew Stacey at First Place Bank at 513-624-3020 or dstacey@fpfc.net.  You can find him online by clicking HERE.

Other Posts

• April 19, 2011 -- 332 Tusculum Ave, Columbia Tusculum, Cincinnati, OH 45226
• May 25, 2010 -- Mariemont Real Estate Market Conditions (May 25, 2010)
• February 20, 2008 -- Stimulating Real Estate and Mortgages with HR 5140 & FHA
• September 16, 2009 -- What the Current Economy Means for Buyers and Sellers

When you’ve done everything to get your home ready to sell and it just isn’t moving, it’s time to think about your next move.  It’s important to know when to adjust the price, especially in declining markets and buyers’ markets.

In his Real Estate Blog, LeRoy Houser provides some clues that it’s time to drop your listing price.

Related...

• June 10, 2010 -- Existing Home Sales Rise in April
• March 30, 2010 -- Sellers: Avoid These Pricing Mistakes
• August 25, 2009 -- The Market: on a Road to Normalization?
• December 19, 2008 -- Not Happy With Your Hamilton County 2008 Market Value?

CNN/Money Magazine has named their 100 top towns in their annual “Best Places to Live.” Mason ranks 24 this year, with five Ohio cities placing in the top 50.

Mason’s great schools, proximity to Cincinnati, good public parks and low crime help place this city in the top 25.

Mason ranks 17 in affordable housing.

See Mason’s stats here.

Other regional cities in the top 100 include these places in the Cleveland, Dayton and Indianapolis areas.

3.) Solon, Ohio

30.) Highland Heights, Ohio

32.) Twinsburg, Ohio

42.) Springboro, Ohio

48.) Westfield, Indiana

50.) Noblesville, Indiana

55.) Brownsburg, Indiana

62.) Plainfield, Indiana

The number one city this year was Louisville, Colorado, in the Denver area.

See the full list.

Related...

• October 14, 2010 -- Great Wolf Lodge Mason Featured on CBS
• February 17, 2010 -- How to Get Money in an Emergency
• July 21, 2009 -- Cincinnati Homearama 2009 Carmelle – Update

Median Price for homes in CINCINNATI, OH 45226 as of February 25, 2011 is $249,000

Inventory for homes in CINCINNATI, OH 45226 as of February 25, 2011 is 59

Average Days on Market for homes in CINCINNATI, OH 45226 as of February 25, 2011 is 209

Other Posts

• October 24, 2008 -- 2009 Economic Outlook… No Time for Real Estate Fears
• April 6, 2011 -- Could Hyde Park School Reopen?
• March 31, 2011 -- The Future in New Construction
• January 27, 2009 -- Help your neighborhood – buy local!

Median Price for homes in CINCINNATI, OH 45208 as of February 18, 2011 is $311,950

Inventory for homes in CINCINNATI, OH 45208 as of February 18, 2011 is 158

Average Days on Market for homes in CINCINNATI, OH 45208 as of February 18, 2011 is 192

Other Posts

• May 12, 2009 -- Video: $8,000 Tax Credit Explained
• July 18, 2011 -- 2260 Riverside Dr. #206, Cincinnati, OH 45202
• October 12, 2010 -- Celebrate Fall at an Area Pumpkin Patch!
• December 20, 2011 -- Green Tip Tuesday: Rechargeable Batteries for Holiday Gifts

The National Association of Realtors profiles buyers and sellers each year. Here are some of the findings:

Buyers:

• Median age for first-time buyers: 30
• Median income for first-time buyers: $59,900
• First-time homebuyers made up 50 percent of the market
• 36 percent of buyers start their home search online. For repeat buyers only, that number is 41 percent
• Only 4 percent of buyers purchase a foreclosure, but half consider it and 39 percent don’t consider it
• More than 8 in 10 buyers purchase with an agent
• Sources of down payments for repeat buyers: savings, 57 percent; proceeds from sale of primary residence, 43 percent; gift, 8 percent
• Sources of down payments for first-time buyers: savings, 74 percent; proceeds from sale of primary residence, 2 percent; gift, 27 percent
• Median down payment for first time buyers: 4 percent
• Median down payment for repeat buyers: 14 percent
• 43 percent of buyers used FHA financing, and that number jumped to 56 percent for first-timers
• 93 percent of first-time buyers took advantage of the tax credit

Sellers

• Median age for sellers: 49
• Median income for sellers: $90,000
• First-time sellers made up 39 percent of market
• Median number of years sellers lived in the home they sold: 8 years
• 88% of sellers worked with an agent
• 9 percent of homes sold were FSBO; Half of those sales were to known buyers (i.e. friends, family), half were not
• 51 percent of sellers traded up, 21 percent traded down
• 57 percent bought newer home, 20 percent an older home
• 55 percent bought more expensive home, 25 percent a less expensive home
• 80 percent of sellers wanted agent to handle most aspects of the sale

Read More:

The Wall Street Journal

MortgageLoans.com

The Dallas Morning News

Other Posts

• January 23, 2011 -- Bringing Home a New Baby
• March 8, 2011 -- Watch Mayor Mallory Go “Undercover”
• July 8, 2008 -- 5847 Skyline Dr., Cincinnati, OH 45213
• January 22, 2010 -- Breaking News: FHA Announces Changes to Address Risk

The jobless numbers have dropped across many counties in the Cincinnati area during April and May, as reported in the Cincinnati Business Courier.

Here’s a rundown of numbers from March to April of this year:

• Butler County: 10.5% (March) → 10.2% (April)
• Clermont County: 11.3% → 10.4%
• Hamilton County: 10.2% → 9.9%
• Warren County: 10.1% → 9.6%
• City of Hamilton: 12.1% → 11.8%
• City of Cincinnati: 10.6% → 10.3%

Overall in the State of Ohio, the March to April unemployment rate fell from 11.5% to 10.7%. Clinton and Highland Counties have had it the toughest, due to the closing of a DHL facility, but their unemployment rates also fell from March to April.

In May, despite hearing “dismal job reports” in the national media, unemployment nationally and in the area is still creeping down. In May, a huge chunk of jobs were attributed to temporary Census workers, not permanent jobs. But the upside is that those workers can contribute to the economy while employed. Nationally, private sector employment added 41,000 jobs. Manufacturing (+29,000), temporary help services (+31,000), and mining (+10,000) added jobs, while construction employment (-35,000) declined.

The Business Courier reports construction employment down, with most construction work attributed to Federal Stimulus projects that have already started and not as much private sector construction.

These numbers could indicate that we will see overall employment rise in Cincinnati this summer.

Read more from the Business Courier:

National jobless rate drops to 9.7% in May.

Jobless rate drops below 10% in Hamilton, Warren Counties.

Forecast: Cincinnati-area employment to rise this summer.

Unemployment falls in Cincinnati, Ohio Metros.

Construction jobs fall in Ohio, Cincinnati.

Related...

• May 3, 2012 -- Cincinnati Flying Pig Marathon
• April 24, 2012 -- Have Your Voice Heard – Brent Spence Bridge
• April 13, 2012 -- Hyde Park Schools Boundary Lines
• March 29, 2012 -- Buyer Beware: Short Sale Homes

Median Price for homes in CINCINNATI, OH 45244 as of May 21, 2010 is $299,900

Inventory for homes in CINCINNATI, OH 45244 as of May 21, 2010 is 285

Average Days on Market for homes in CINCINNATI, OH 45244 as of May 21, 2010 is 173

Median MAI for homes in CINCINNATI, OH 45244 as of May 21, 2010 is 11.93

Other Posts

• April 9, 2009 -- Affordability Shines in Cincinnati
• January 20, 2009 -- Homearama 2009: New Location/Dates: Carmelle Subdivision in Septemeber
• May 30, 2011 -- Summer Grilling Safety
• July 18, 2007 -- 6951 Turpin View Dr., Anderson Twp., OH 45244

Median Price for homes in CINCINNATI, OH 45227 as of May 21, 2010 is $114,950

Inventory for homes in CINCINNATI, OH 45227 as of May 21, 2010 is 178

Average Days on Market for homes in CINCINNATI, OH 45227 as of May 21, 2010 is 136

Median MAI for homes in CINCINNATI, OH 45227 as of May 21, 2010 is 20.72

Read more about Mariemont Market Statistics or sign up to get reports about all the Cincinnati areas.

Statistics Powered by Altos Research

Other Posts

• February 5, 2008 -- Ohio Law Warns Buyers About Foreclosures
• August 5, 2011 -- 3431 Stettinius Ave., Hyde Park, Cincinnati, OH 45208
• March 7, 2007 -- It’s Not About The Rate
• June 17, 2010 -- Cincinnati’s Free Computer Recycling – Drop Off Saturday