Property owners are using sites such as onlinehousetrading.com ,  mkhomeswap.com , and besthouseswap.com to identify potential swap partners in the areas they are looking to relocate to. The reach of the Internet is making finding those elusive swap partners easier and faster.

In most cases these swap site require a registration fee that can range from $20 to over $250. Also the idea of a swap can be misleading. In most cases homeowners negotiate sale prices and work with real estate attorneys and mortgage lenders to facilitate property exchanges particularly when there is a difference in value between the properties. House swapping could be a for home owners looking to sell their Cincinnati Real Estate.

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There are wide economic factors that drive interest rates and a number of economists on a recent NPR program feel that as inflation begins to appear interests rates will rise. A 1% change in interest rates can make a difference in the price range that a buyer afford. Below is a table that shows the impact a 1%  interest rate increase can have in the monthly payments on a  30 year mortgage.

With this information in mind we are suggesting that any prospective home buyers who have been considering making a move do so now to take advantage of the affordability of Cincinnati’s current real estate market, the low interest rates, and the $8,000 tax credit for first time home buyers.

1. Check with the Cincinnati Home Builder Association (HBA) to see if the builder is in good standing.

2. Are they paying their subcontractors on time?

3. Are they in good standing with the Better Business Bureau and do they have complaints filed against them?

4. Call the last 3 to 4 home owners for a reference regarding the on-time completion and quality of their last few home constructions?

5. Is the home warranty through the builder or an insurance company and does it follow HBA standards?

6. How many employees manage construction of your home?

7. Do they have an in-house selection center to make your choices?

8. Does the builder have a Service Department to service the home after construction is completed and you are living there?

9. Is the builder in good standing with the State of Ohio?

Remember that although there are real estate agents present at most new subdivisions, those agents represent the builder. It is important to have buyer representation when building a new home. Please remember that builders have already figured in a buyer’s agent commission so you will not be penalized for having a buyer’s agent. If you are in the market for a new construction home contact me Alison.Moss@Comey.com for a free consultation and representation.

According to the Cincinnati Area Board of Realtors, Cincinnati’s index of 244.4 is higher than the national average due to more attractive home prices, lower housing costs, and a higher median income. This means we have more home buying power in the Cincinnati real estate market. The housing affordability in the midwest in general continues to draw corporate headquarters to our area. The graph below shows how Cincinnati compares to the nation.

Cincinnati Real Estate Affordability Index

For those currently in debt and in trouble with their mortgage here are the incentives the government has set out for you to renegotiate with lenders:
1. Your loan must be at least 31 percent of your monthly household income.
2. Lenders, however, are not required to give you a better deal under the new law.
3. If you manage to get a new loan, you cannot take out a home equity loan for at least five years. 4. 4. You will also have to pay a 1.5 percent fee each year on the remaining balance.
5. Finally, you have to hand over no less than 50 percent of any appreciation on the home to the government once you sell. Sell the house in less than five years, and you will have to turn over as much as all of the gain.

Now about those $7,500 interest free loans being handed out. Well they are for first time home buyers and come in the form of a tax credit. How ever if your income is over $75,000 ($150,000 married) the credit begins to phase out. You will pay the loan back in 15 equal payments over the next 15 years to the Internal Revenue Service. The tax credit is retroactive to home purchases on April 9, 2008, and expires on July 1, 2009. Ask your accountant about this benefit in your 2008 return.

The Bill will also allow Fannie Mae and Freddie Mac to purchase and securitize loans up to $625,000 where in previous years the cap was $400,000. This increase comes in line with the increase of home prices over the decades.

Dan Green, or good friend over at The Mortgage Reports translates this complex information into an easy to read piece.  The reality is this – Fannie and Freddie are likely to increase their fees, and that cost is going to trickle down to the borrower. In addition since they are willing to insure your loan, they are potentially going to ask your loan officer to ask you to document your income and assets before you get your loan and rates.

In the Cincinnati real estate market those of you with not so good credit are going to find getting a loan a bit more difficult. Borrowers are going to be asked to prove income as well as be qualified only for what they can genuinely afford.  Our suggestion is to work with a good broker, like Dan, who can match you with the correct kind of loan.

Data from Greater Cincinnati Multiple Listing Service

Although we moved a bit out of Downtown, we did look at a few of the new buildings that are being converted into residences. It is a great trend to see large building space turned into living space. Aside from helping commute traffic volumes it is reducing the amount of gasoline we use. The new residences such as the One River Plaza complex and the redevelopment of the old McAlpin Department store are great examples of new and renovated buildings.We are all very excited to see what things materialize as The Banks multi use project gets underway. Any way we look at it it is an exceptional time to be in Cincinnati and enjoying the crisp weather and great sights and events.