It doesn’t feel like spring, but the Flying Pig Marathon and its associated events are coming up. Even if you’re not a marathon runner, there’s a variety of events for which you can register. Get your kids in on the fun with some of their youth events. Here are some highlights of the schedule.

Saturday, May 1

8:00 a.m.  – 10K Race start
10:00 a.m. — 5K Race Start

11:30 a.m. — Flying Pig Kids’ Marathon finish
Sign your kids up for the Kids’ Marathon, in which they can log miles and complete the entire 26 over a couple of months then finish their last mile at this special event. Learn more here.

12:30 p.m. — Flying Piglet Kids’ Fun Run featuring the Diaper Dash
Kids in the 5 and under age groups can participate in the Fun Run/Diaper Dash at Yeatman’s Cove. “Race” lengths are determined by age, and the Diaper Dash is a 15-ft. crawl. Each child can participate with a parent and everyone gets a prize. Learn more.

4:30, 6:00 and 7:00 p.m. — Pasta “Pig Out” party on Fountain Square

Sunday, May 2

6:25 a.m. — Marathon Wheelchair Start
6:30 a.m. — Flying Pig Marathon, Half Marathon and 4-Person Relay Start

View the Full Schedule

Register for these events

Flying Pig Homepage

Other Posts

• February 12, 2010 -- Cincinnati’s Romantic Spots
• February 8, 2010 -- Tax FYI: Energy Star Credit
• May 29, 2008 -- 2008 Oakley St. Cecilia School Giving Back FAQ
• September 6, 2007 -- Foreclosures: Good For Some, Not For Many

As the market continues to show shoots of recovery, experts believe that the roots will continue to grow. In his annual letter to the shareholders of Berkshire Hathaway, Warren Buffett said, “Within a year or so, residential housing problems should largely be behind us.”

After a steep run-up in prices during the first half of the decade, home values have readjusted back to normalized levels. Fixed mortgage rates are sitting near record lows and the number of homes available for sale is providing home buyers with more options. Also encouraging are indications that the high end of the housing market could begin moving again as luxury financing becomes more readily available.

Despite high unemployment and looming foreclosures, experts maintain their expectations that the economy will grow in 2010, while the government carries on its search for solutions to help both troubled homeowners and the unemployed.

The Housing Market

Existing Home Sales

Existing home sales slowed in January. According to Lawrence Yun, NAR chief economist, this is mainly due to the lack of urgency with the extension and expansion of the first-time buyer tax credit in November. January sales of 5.05 million remain 12 percent above the 4.53 million-unit level last year.

Median Home Price

Existing-home price was $164,700 in January, 3.4 percent below December and unchanged from January 2009. Distressed homes, which accounted for 38 percent of sales last month, continue to skew prices downward as they typically are discounted in comparison with traditional homes.

Inventory

The supply of homes continued to shrink, falling 0.5 percent to 3.27 million, representing a 7.8-month supply at the current sales pace. Compared to a year ago, there are now 10 percent fewer homes on the market. This is the lowest level of competing homes on the market since March 2006.

Mortgage Rates

Mortgage rates edged above the 5 percent threshold during the week of February 25, but remained near historically low levels. As the Federal Reserve mortgage-backed securities purchase program is scheduled to run out at the end of March, the Fed has held the door open to extending it if the economy weakens.

Affordability

Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 14.1 percent.

Sources: National Association of Realtors, Freddie Mac

Government Action

Jumbo Mortgages Begin to Thaw

The cost of jumbo loans, often used to purchase luxury homes, shot up during the financial crisis because lenders steered clear of anything that could be considered somewhat risky. Plus jumbo loans are too large for the government to support through the Federal Housing Administration, Fannie Mae, or Freddie Mac.

The good news:  The jumbo loan markets are beginning to unfreeze and return to normal.

The difference between interest rates on conventional loans and jumbo loans has decreased from higher levels seen last year.

In some cases, the down payment requirements are easing as well, but they often still depend on the level of borrowing – the more the mortgage, the higher the down payment percentage. In New York, mortgage professionals report the following common down payments:

Borrowers will still need a good credit score, typically at least 700, evidence of high income, and a sizable bank account.

Sources: Los Angeles Times, Inman News

Topics For Buyers & Sellers

2009 Tax Tips

Tax time is coming up.  Don’t forget about the following benefits in 2009 for homeowners.  What’s deductable in itemized deductions for homeowners?

1. Mortgage Interest

2. Points - paid at closing if you purchased or possibly if you refinanced this year

3. Mortgage Insurance Premiums

4. Property Tax

5. Energy Efficiency Credits – see IRS Form 5695 for qualifying projects

6. Home Buyer Tax Credit – see IRS Form 5405 to claim your credit if you qualify

Other Posts

• October 20, 2008 -- Will Rates Go Up or Down?
• April 22, 2009 -- Earth Day: HGTV Green Home
• October 28, 2008 -- Go Green! Friendly Heating and Cooling Tips for Homes
• October 29, 2009 -- 1128 Delta Ave., Mt. Lookout, OH 45208

If you are claiming the $8000 tax credit (or the $6500 tax credit for repeat buyers,) you will have to file on paper. Here’s what the IRS has to say:

Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase.

• Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties’ names, property address, sales price and date of purchase.
• Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties’ names, property address, purchase price and date of purchase.
• Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

For the repeat buyer credit (“seller credit”), here’s what they say:

The November 2009 legislation extends the credit to long-time residents of the same main home if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. For long-time residents claiming the credit, the IRS recommends attaching, in addition to the documents described above, any of the following documentation of the five-consecutive-year period:

• Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
• Property tax records or
• Homeowner’s insurance records.

The IRS didn’t originally require the HUD-1, but there were early problems with fraud. If you are my client and need a copy of your HUD-1, contact me.

Be sure to talk to a tax professional if you have any questions or confusions about your home buyer tax credit.

IRS Website.

Related...

• November 9, 2009 -- Expanded Homebuyer Tax Credit is Official
• November 5, 2009 -- Breaking News: The Homebuyer Tax Credit Passes Congress
• October 30, 2009 -- Delays in Receipt of $8,000 Tax Credit
• October 6, 2009 -- How to File and Use the $8,000 Tax Credit

You may have heard this announcement earlier this month: “January new home sales fell to a record low.”

This is true, but we can put it into perspective. Perspective is always important in managing consumer confidence!

The record low applies to new construction, not overall home sales. While there are great deals in new construction right now, builders simply cannot discount homes like regular sellers can. Builders have a finite cost to everything they put in. The deals they will offer are free upgrades, appliances, and other benefits. They can only slash their prices so much — this leads some buyers to resale instead of new.

January is already a very slow month in home buying. And to close in January usually means you went under contract in the weeks leading up to the Christmas holiday or during Christmas. This is not a very popular time for people to buy homes unless they need to.

Another possible factor in January sales is the availability of tax credits. Some buyers did their best to squeeze their closing into the 2009 calendar year in order to get the benefits of home buying on their 2009 return. This can leave a bit of a lull after people rush to get their purchase complete before the end of the year, or before the Christmas holidays. This is a potential reason for a slow January in any year for any type of home sale.

Finally, you can never judge the market by one month. The market can change a lot from month to month, and average out. Remain calm! Monthly numbers can make exciting headlines, but they aren’t always a true indicator of the market because they cover such a short span of time.

With the entire Eastern part of the country buried under a major snow storm for a large part of February, we could expect some low numbers in home sales after this month is over. Just remember, there are factors like this that can affect monthly sales.

One more fun fact: in the Midwest, these numbers are actually UP 2.1%, so it is not as relevant for our area. So remember that when you hear an announcement on the news, it may vary by region. (The Northeast new home sales were the hardest hit.)

For Cincinnati and its specific neighborhoods, check out my Market Statistics.  You can follow a specific zip code in the Cincinnati area and be updated by email with the latest data.

Read more:

CNN: New home sales fall to a record low.

USA Today: New home sales drop to record low.

Other Posts

• January 28, 2007 -- Perils of Overpricing Your Home
• December 29, 2009 -- Amy’s Best Blog Entries of 2009
• August 7, 2009 -- 3869 Mt. Vernon Ave., Cincinnati, OH 45209
• May 19, 2009 -- Cincinnati Among America's Best Bargain Cities

You may have been hearing about new credit card rules taking effect. We outlined them in May when the bill was in the process of being passed, but here’s a list of some new requirements (courtesy Federal Reserve):

• No interest rate increases in the first year.
• No increase in interest rates on your existing balance, except under certain circumstances.
• No over-the-limit fees unless you choose this service.
• Payments over the minimum must be directed to the highest-rate balance first.
• 45 days’ notice required before an increase in interest rates or new fees.
• Credit card bills must be mailed or delivered at least 21 days before the payment is due.
• New restrictions on credit card accounts for consumers younger than 21.

Learn More:

• Associated Press Video: New Credit Card Rules
• USA Today: Make the Most of New Rules

Related...

• May 26, 2009 -- New Credit Card Rules
• February 12, 2009 -- What is Your Credit Score
• December 20, 2008 -- A Time to Refinance??

Normally, we recommend you consult or hire a stager before listing your home. But some of my clients want to get a head start, and this is what I recommend. I find my clients are becoming more savvy about how to prep their homes for sale. (Thanks goes to HGTV, I suspect.)

This is a long, detailed list. (You can download a printable version.) However, I can sum it up easily: De-clutter, use a storage unit, and CLEAN. Your home must be as clean as possible. I recommend a pre-listing professional cleaning, and have put it on the list.

☐ GET A STORAGE UNIT
☐ KEEP EVERYTHING CLEAN

Outdoors

☐ Clean and revitalize front door and surrounding area
☐ Clean up deck/patio/porch
☐ Remove all outdoor trash
☐ Put away outdoor tools, toys and other clutter
☐ Make gardens look maintained and not dead
☐ Get a new large doormat
☐ Install outdoor lighting if needed
☐ Find a home for garbage cans
☐ Make garage look clean and large
☐ Complete all lingering outdoor repairs
☐ Spray off siding, and use a cleaning agent if needed
☐ Keep the house/driveway/walkway hosed down as needed
☐ Repair cracks in walkways and steps
☐ Clean gutters (and reroute them if they are causing a leaky basement)
☐ Mow your lawn and keep it weed free and green
☐ Trim hedges and put mulch around trees and shrubs
☐ Keep drive and walkways free of snow if applicable
☐ Arrange for these things to be done for showings if you are an absentee seller

Indoors – General

☐ Remove all dirt and grime from every part of your home
☐ Vacuum and dust continually
☐ Tackle all odors and freshen before showings with potpourri or fresh baked cookies (Avoid air fresheners, which are too strong)
☐ Make any needed minor repairs around the home: tighten, patch, replace, etc
☐ Consider putting some furniture in storage: start with large items, dated pieces, or those that lack purpose
☐ Arrange rooms with a clear purpose and natural flow, and maximize space
☐ Store any extra televisions (in kitchen or bedrooms) if possible
☐ Remove as many indicators of your pets as possible, and limit to one area
☐ Make plans for you and pets to be out of the home for showings
☐ Replace burned-out lightbulbs
☐ Assure that maximum light is coming through all your windows
☐ Clean windows and window treatments
☐ Touch up all scratches on walls and/or do fresh coats of paint where needed
☐ Fill nail holes or cracks

Living Areas

☐ Pack away all personal photos, you can replace some with more artistic photos
☐ Remove knickknacks and keep decor taste-neutral
☐ Add fresh flowers to an area
☐ Tidy up entertainment centers, eliminating messy cords and extra DVDs, etc.
☐ Clean up magazines, newspapers and mail
☐ Clean carpets and polish up hard floors
☐ Consider replacing heavily worn or damaged carpet/flooring
☐ Expose original hardwoods if covered by carpet
☐ Find a place for all toys and kids’ items, and limit these to their rooms/playroom

Kitchen/Dining

☐ Scrub all kitchen surfaces
☐ Eliminate most countertop appliances to maximize space
☐ Clear fridge of magnets and papers
☐ Consider new kitchen hardware or faucet if room looks dated
☐ Hide kitchen garbage, or invest in a high quality lidded garbage can
☐ Clean out pantry and cabinets and arrange to maximize space
☐ Keep refrigerator neat and odor-free
☐ Tidy up drawers, and use drawer organizers if necessary
☐ Make the table inviting with a centerpiece, place mats or table runner
☐ Clean or repair any damaged or stained grout/caulk (kitchen and bathroom)

Bathroom

☐ Shine up bathrooms, remove any stains, and keep waste emptied
☐ Consider replacing one or two fixtures in dated bathrooms, such as faucet, sink, hardware, etc.
☐ De-clutter bathroom of toiletries, add plush towels and use a clean shower curtain
☐ Fix leaky faucets, and consider a new shower head if yours is cruddy
☐ Limit items in shower/tub and organize necessities in a small bin or rack
☐ Clean up medicine cabinet, and keep prescription drugs out of sight

Bedrooms

☐ Keep beds made, and use fresh, matching linens
☐ Cut down on bedside clutter
☐ Find a safe place for jewelry and valuables
☐ Make sure dirty clothing in closets is not visible (eg: in an enclosed hamper)
☐ Clean out closets, organizing all items and putting off-season clothing in storage
☐ Tidy up shoes and accessories, eliminate some and use appropriate storage
☐ Eliminate random items from clothing closets that don’t belong there and store away
☐ Attack other closets, removing as much as possible and putting things in storage
☐ Use attractive organizing systems in closets where applicable
☐ Put loose items that must remain in matching solid bins
☐ Kids’ rooms should look like kids’ rooms, just keep them tidy

Office

☐ Tidy office desks, corralling cords and storing seldom used computer components
☐ Tidy CDs, software, books, etc., and put some in storage if possible
☐ File all papers, and keep all sensitive documents safely hidden or shred them
☐ Make sure an office doesn’t look like a junk room — add a seating area if needed

Laundry/Basement

☐ Tidy up laundry area, and keep it free of dirty or drying laundry
☐ Resolve a wet basement, which could involve issues with windows or gutters
☐ If you can’t resolve a wet basement problem, call an expert to address it
☐ Maximize light in basement with light paint, uncovered windows and extra light fixtures
☐ Paint the basement floor if it will help the space look cleaner and brighter

☐ SCHEDULE PRE-LIST CLEANING: Call Cindy at White Tornado, 859-816-0287. Tell her Amy B sent you!

Related...

• November 2, 2008 -- Staging… Cincinnati Style
• October 23, 2008 -- Four Staging Challenges
• June 25, 2008 -- Financing Changes make Buying and Selling more Difficult
• May 23, 2008 -- Cincinnati Homearama 2008 – Long Cove

By Steve Habegger
AmyBSells Team Certified Distressed Property Expert

Short sales and foreclosures have become dirty words to the average person.  But in my experience and education, I’ve found that there are many average people who are unfortunate enough to encounter these realities.  Too many homeowners are making decisions without proper information.

That is why I have become a Certified Distressed Property Expert (CDPE) for the AmyBSells Team. A CDPE is a real estate professional with specific understanding of the complex issues that confront homeowners in distress. Through comprehensive training and market experience, CDPEs are able to provide real solutions for homeowners facing hardships in today’s market.

My goal is to help people make choices that can save them from foreclosures, primarily by using a short sale.   A short sale is a process, predicated by a homeowner in financial distress, in which the mortgage with the bank can be negotiated. This helps distressed homeowners sell their property in a normal sale without foreclosing it to the bank: saving their credit, dignity and ability to be homeowners again.

A Growing Need

Our team has run into an increasing proportion of clients who are in financial crisis, primarily due to job loss, job transfer and divorce.  Many circumstances leave families without the ability to afford their current mortgage, and facing the potential of foreclosure and/or bankruptcy.

Some of the statistics regarding distressed properties are truly unbelievable…

• 1 in 6 homeowners are behind in their mortgage payments by at least one month (this is  the beginning stage of foreclosure)
• between 1/4 and 1/3 of all mortgages are underwater, meaning that the decreased current home value is less than what is owed on the mortgage (those getting 100% financing or selling their homes in 2-3 years after purchase are often in this situation)
• 28.5% of home sales nationwide sold for less than what the seller originally paid

There is no doubt that nationally, the statistics are staggering, and while our local area may not be affected to the same degree as hot-spots like California, Nevada and Florida, there is no doubt that local communities are seeing increased levels of foreclosure.

Saving Your Credit

As you may know, foreclosure can be devastating to a family for many years, hindering their ability to buy a car, cell phone (any good one that requires a credit check), get affordable health insurance, car insurance, an apartment, another home (up to 7-10 years), and could even cause them to lose their current employment or have trouble finding a new job. Read more about how short sales or foreclosures affect your family.

Many people in these situations often do not know their options, and feel that foreclosure is the only way out.  It’s not, and my goal is to help people understand the consequences of walking into a foreclosure.

Helping Neighborhoods

Neighborhoods can be adversely affected by numerous foreclosures.  When a home enters foreclosure, the bank owns it, and must eventually sell it back to the market to regain their losses.

Typically, the sales price at this point is much lower that it would have been had the home not been foreclosed upon.  This is due to many factors, but mainly because the home has likely been abandoned and has damages as a result of lack of maintenance and care; water damage, unkempt lawns, smells, etc.  As a buyer, you can imagine that you would not want to pay full market price for a home that has some of these deficiencies.

When enough of these depreciated foreclosed properties sell in a neighborhood, normal home values are negatively affected by the lower sales numbers.

Averting foreclosures helps to sustain our neighborhood and city home values; by counseling families to escape foreclosure, I feel that I can contribute to the benefit of our neighborhoods.

Together, we can find solutions that help families and communities.

Steve can be reached at his Cincinnati Foreclosure Help website, by email at Steve@AmyBSells.com or by phone at 513.549.2373

Related...

• November 6, 2009 -- Foreclosures and Short Sales: the Dangers of Buying Them
• August 13, 2008 -- Home Sales are Key to Economy
• June 25, 2008 -- Financing Changes make Buying and Selling more Difficult
• March 25, 2008 -- State of Real Estate: The Good and the Bad, Honestly