Five Tips for First Time Home Buyers:

1. Establish good credit. Get a credit card, and pay the bill on time each month (bonus points for paying down the entire balance monthly). If you are renting an apartment or have a car loan, be sure that they are in your name and that you are paying for them on time and in full each month.
2. Start saving for a down payment. Open a savings account or stock brokerage investment account and start making regular deposits.
3. Study up. Read some books about real estate, financial management, and buying a home. As you prepare for future home ownership, you’ll be making this investment with both eyes open and a clear sense of what you’re getting into.
4. Research where you’d like to live. People are more mobile than ever before, and chances are good that you’ll someday live in another city or state. Look into housing costs and opportunities in other parts of the country that interest you.
5. Ask for advice. Asking questions about real estate to people in the know is a great way to ensure that you will be an informed buyer when the time is right. Family and friends who have experience purchasing a home or who work in the real estate field can be a wealth of information. This is where Alison and I can come in handy. Please  contact us any time- we would be happy to answer any questions that you might have!

We see it all the time – buyers find a beautiful home which, to the naked eye, seems to be in great condition. Which is why we remind our buyers that only a trained inspector can identify underlying issues that could cost them pain, heartache, and cold hard cash in the long run.

How the Home Inspection Process Works.

Once an offer has been accepted, Alison and I put our clients  in touch with one of our recommended home inspectors. We recommend inspectors we’ve worked with before, whom we trust to do through and complete inspections, and to find the issues with their potential new home. They spend four or five hours at the home evaluating and examining the interior, exterior, electrical, plumbing, and major systems. Within 2-3 days they deliver a very thorough report with their findings.

Every real estate contract we use has an ‘Inspection Period’  during which we inspect and review the inspection report, and a ‘Remediation Period’ during which we negotiate repairs and credits with the home sellers. Buyers can; ask sellers to make repairs as part of the terms of the contract, ask for a price reduction, live with the issues in the home if they are minor, or decide the issues are so severe that they terminate the purchase contract.

The peace of mind buyers get from knowing that the home they purchased is in good working order makes the cost of a home inspection worth every penny! If you are looking for a home in the Cincinnati area contact me today!

9 reasons to buy a home now.

Forbes has a complimentary article, pointing out 9 reasons to buy a home now. The article gives some detail on each point. I have posted just a few of the points to reiterate the point that the market strongly favors home buyers presently.

Lowest Housing Prices in Years – As the market corrects the prices in some neighborhoods will begin to rise. While most observers agree that the real estate market as a whole is down certain neighborhoods are holding their value.

Interest Rates at a 50-Year Low – The FED continues to hold down interest rates and that is creating an artificially  low borrowing cost. This low FED rate is also making Adjustable Rate Mortgages very affordable as well.

Interest Rates Expected to Go Up – Low rates, like most good things in life, will not last. If inflation begins to take shape expect the interest rate to go up.

Home Builders and Homeowners Eager to Sell, Offer Incentives – Some homeowners are eager to move on, and in some cases take a loss on their home. Not all neighborhoods are experiencing property value decline across the board so make sure you have an experienced real estate agent like myself pull research and provide comparable sales before you decide to write an offer.

With a convergence of the factors above, all of which are favorable to the prospective home buyer, there may not be a better time to buy than right now. It’s a buyer’s market, but like everything else in life, the bargain deals won’t last. If you are looking for a home contact me at 513.518.1140!

What is Driving Affordability in Cincinnati Real Estate

There are a number of factors that are driving up the affordability of real estate in Cincinnati and across the country. As the economy begins to add approximately 100,000 jobs per month, more households are seeing their finances stabilize.  While credit is more difficult to obtain due to more stringent lending practices, home values continue to stay low. The Case-Shiller index declined again in May, noting that nationally home values have decreased.

Combining these three major factors, and you can see how those who are in the market for homes are looking at a market that is highly favorable to them. Simultaneously sellers continue to feel the downard private pressure.  If you are in the market for a home, especially if you are a first time home buyer please contact me at 518.1140

I work with a lot of first time home buyers and understand all of the emotions that they experience through the entire process. I see the joy and the frustration both as they navigate through things like contracts, negotiations, addendum and all of the other steps involved in the process. I also get to see the looks on their faces when things go well and we close on their first home.

A friend and her husband just purchased a home in Texas  and she wrote an expansive piece about the emotions and process they went through to find the right house  I think it is the same for most first timers, but few take the time to write about their personal adventure with such care and detail.

There’s a certain cliched, cheesy magic that has been portrayed by Realtor commercials, of couples gazing expectantly at each other, eyes wide, thrilled that they’ve found THE HOUSE and that they can now embark confidently on The American Dream.  And the thing is, they’re actually not joking.  Just like when I found out that the best part of waking up really is Folger’s (or any coffee) in my cup, I discovered this was a time when commercials weren’t lying to me.

Because the moment you realize that you and your mate both love a house is nothing short of momentous, causing you to react like you’ve just discovered King Tut’s Tomb.  Or maybe the Baby Jesus.

“The stained concrete floors!” I cried.

“The huge backyard!” Ross wept.

“Oh, oh my God, Ross, there’s a PECAN TREE,” I whispered.

“I know, Tolly, and there’s even a small driveway,” he said.

We were completely giddy.  We practically skipped out the front door, and into our realtors’ arms.

You can read the whole post on the Austin Eavesdropper.

First Time Home Buyers Credit

• First Time Buyers – just like it sounds.  They can take an unassisted first mortgage only at a below market rate (currently 4.5%) or get assisted rate (currently 5.00%) with a 2.5% down payment assistance grant.  Grant does not have to be paid back as long as borrower lives in the property as a primary residence for at least 5 years.  The Ohio First Time Home Buyer Credit.

The Ohio Heroes Program

• Ohio Heroes Program – buyer must be in specific jobs fields (police/firefighter, medical profession, teacher, active military or reserves).  Unassisted rate at 4.25%, or assisted with down payment assistance grant at 4.75%.  Same repayment terms as First Time Buyers program.  The Ohio Heroes Program.
  

Ohio Grants for Grads

• Grants for Grads – Associate, bachelors, masters, doctorate, or post graduate degree in the past 18 months for eligibility.  Must have graduated from an Ohio high school. The special financing rate is 4.5%. The Ohio Grants for Grads Program.
  

Real Estate Broker
In most cases, a real estate broker will have more experience and will have completed more training and education than an agent, though this is not always the case. The primary difference between an agent and a broker is that a real estate broker can hire real estate salespeople and can work independently. Furthermore, the examination necessary to obtain a real estate broker’s license is typically longer and more difficult than a saleperson’s exam because a broker is expected to have a higher level of knowledge.

Broker Associate
A broker associate is a broker who works for another broker. While a broker associate has the necessary licensing to work on his or her own, the broker associate may choose to work for a larger network.

Real Estate Agent
A real estate agent is a licensed salesperson who does not have the broker licensure. As such, a real estate agent must work for a broker and is not able to work independently, which means the broker is ultimately responsible for the actions of the agent. Requirements for becoming a real estate agent vary from state to state.

REALTOR
A REALTOR is a broker or agent who belongs the National Association of REALTORS (NAR), which means the person is committed to adhering to the NAR’s extensive Code of Ethics. Not every real estate agent or broker is a member of the NAR. For those who are, you can file a complaint with the local board if you are unhappy with the REALTOR’s performance.

Listing Agent
Also referred to as a seller’s agent, a listing agent is responsible for representing the person who is selling the house. As such, they are legally required to protect the interest of the seller.

Buyer’s Agent
Also known as the selling agent, which should not be confused with “seller’s agent,” the buyer’s agent is responsible for representing the person who is buying the home. As such, the buyer’s agent is legally required to protect the interests of the buyer throughout the entire process.

Dual Agent
The Dual agent represents both the seller and the buyer in the transaction. Even if there is a separate listing and buyer’s agent, it is possible to have a dual agency situation if both of the agents work for the same broker. It should be noted that this type of arrangement is not legal in all 50 states.

Transaction Agent
Transaction agents are often used in states where a dual agency is not permitted. The transaction agent is the agent who writes the offer for the buyer, but does not necessarily represent either party in the transaction.

About The Author: Eric Bramlett is the broker & co-owner of One Source Realty, a boutique real estate company specializing in Lake Austin real estate and Steiner Ranch homes for sale.

Understanding Mortgage Language

LTV = Loan To Value ratio. This is a  ratio of the value of your home vs. how much you are borrowing. If you home is worth $100,000 and you borrow $85,000 then you have an 85% LTV.

MIP = Mortgage Insurance Premium. If you are taking out a home mortgage and are putting down less than 20% (so your LTV is 80%+) you will most likely be required pay for an insurance policy that protects the lender in the case that you default on your loan.

Why FHA is Increasing Mortgage Insurance Premiums

So with that being said, FHA is raising MIP for borrowers, most likely because as with all insurance policies, premiums go up when more and more lenders cash in their policies on defult loans. Considering the number of foreclosures, and therefore the number of mortgage insurance policies that have been paid out, it makes sense that premiums go up. Just like flood insurance premiums go up after a flood.

How Much FHA is Increasing Mortgage Insurance Premiums

1. These changes are effective April 18^th, 2011.

2. The Annual Insurance Premium will increase .25% for standard forward mortgages*. The Upfront Mortgage Insurance** remains at 1.00%. * Forward mortgage: A mortgage that is secured by the property at time of purchase.  **Upfront Mortgage Insurance: The Mortgage Insurance Premium (MIP) that lenders must remit within 10 calendar days of the mortgage closing or disbursement date, whichever is later (Mortgagee Letter 2005-28).

3. The Annual Premium was .90% is now 1.15% for LTVs GREATER than 95% on 30-year loans

4. The Annual Premium was .85% is now 1.10% for LTVs EQUAL to or LESS than 95% on 30-year loans

5. The Annual Premium  was .25% is now .50% for LTVs GREATER than 90% on 15-year loans

6. The Annual Premium was 0% is now .25% for LTVs EQUAL to or LESS than 90% on 15-year loans

To illustrate, on a home priced at $163,000 with 3.5% down, the monthly payment was $118 per month and is now $151 per month– a $33 per month increase.

If you have questions about how this change could impact your mortgage call me at 513-518-1140.

A recent report by MRIS details survey results from hundreds of buyers and sellers in today’s current market compared to recent years. Between the market price volatility, changes in lending practices, and the foreclosure influx having a professional to guide you through the process is as important as it has ever been. In the survey MRIS identified a few key reasons that buyers and sellers want to work with an agent.

Top Five Reasons Homebuyers want to work with agents:

1. Knowledge of closing procedures
2. Negotiating the best price
3. Understanding their needs and wants
4. Knowledge of the community
5. Responsive to their emails and calls

Top 5 reasons Home Sellers want to work with agents:

1. Setting the right price
2. Effectively marketing their property
3. Understanding their needs and wants
4. Negotiating the best price
5. Knowledge of closing procedures

If you are looking to buy or sell property in Cincinnati contact me at 518-1140.

The Ohio Dept of Health (ODH) is pushing for additional regulations making radon testing almost twice as expensive and radon mitigation could be impacted similarly. All disputed regulations are from Ohio new rules 3701-69-07 Appendix A and 08. A copy of the draft rules are located at http://www.odh.ohio.gov/rules/drafts/d3701-69.aspx

New Radon Testing Rules Will Impact Cincinnati Real Estate Sales

1. When the l the home being tested is over two thousand square feet, an additional test location is required for each additional two thousand square feet. So if a home is over 2001 -4,000 sf, the tester would have to conduct 2 tests.
2. Unoccupied homes shall be tested with the heating, ventilation, and air conditioning (HVAC) system set and operating throughout the measurement interval in the normal range, such as seventy-two degrees Fahrenheit plus or minus five degrees Fahrenheit. Most home owners keep their HVAC units on, but foreclosures tend to have them shut off. This would impact those homes the most.
   
3. Conduct a short-term test in each of the lowest structural areas suitable for occupancy in the home. For example, if the home is a split-level building with one or more foundation types, test in the basement, in a room over the crawlspace, and in a slab-on-grade room. In accordance with this protocol, measurement licensees are required to test in each of the foundation types. Theoretically, a bi-level home would require at least 2 radon tests set, if not three depending on the the number of foundation types.
4. Sump pump pits are not to be used as the primary radon mitigation location.  Many Radon systems are installed into the sump pump pits because it is inexpensive and effective. This change will require additional work and potentially increase the average radon system cost.
   
5. Finally the ODH reserves the right to audit mitigation systems, in the interest of being certain of the quality of the mitigation as well as safety of the homeowner.  The additional cost could be shouldered by the taxpayers at large, the installers, or the homeowners as part of the system installation

This is great information for new buyers and current sellers to know. I am unsure if these rules will be retroactive or not but it is something to keep an eye on especially if you already have a radon mitigation system in your home.