Getting Ready to buy in 2010

So, the First Time Home Buyer Tax Credit draws to a close.  Hopefully, you found what you were looking for!  If not, and I know there are a few of you that didn't, you may be asking yourself, "What do I do now"?  Well, for starters, don't beat yourself up over not finding the home that's right for you.  You need to be in love with the house you are buying - so don't run out and spend $150,000 just so the government will give $8,000!  Properties will still be for sale on May 1 - many of them not on the market now, and others that have been sitting may be forced to finally lower their price to something the market is willing to pay.

If you've been looking for a while, now may be a good time to review what you are looking for.  Now that you have been in houses and have a better feel for what you do and don't like - use this knowledge to narrow your list.  You've driven through neighborhoods that perhaps you can now eliminate, home styles that just don't offer what you need, etc.  It's OK to sit down with your REALTOR again and discuss your needs and wants - they do have a tendency to change.  Now take this new list, and renewed energy and check out what's out there.

If you are just starting to look for a new home, there is plenty of inventory out there for you - at some of the lowest prices we have seen in quite some time.  Interest rates are climbing but are still quite outstanding but these will not stay down for much longer.  Everything we see points to an inflation of the rates - My best advice, is to talk to your loan officer and stay in contact with them.  Know what the rates are doing on a weekly basis and adjust your schedule accordingly.  Perhaps take a day off and schedule several properties in one search - REALTORS work Saturdays and Sundays and these are outstanding days to view lots of properties.

Make a list of you NEEDS and WANTS.  (NOTE:  These are two different things and should be on two separate lists)  Meet with your REALTOR first, and have a discussion about these lists.  Your REALTOR knows your market and can enlighten you what features you want are most common and which ones will cost you more.  Most of all, stay focused and plan the process out all the way to close and beyond.  With this you can better prepare yourself to manage any issues that arise - and there will be some.  

On my next session of Getting Ready to Buy, we'll talk about Open Houses, Do's and Don'ts! In the meantime, if you have questions about buying or selling a home in the Cincinnati area, give me a shout at chris@chrisjwood.com

Chris Wood
REALTOR
Mobile: (513) 382-2474
iFax:  (513) 322-7931
Web:  www.chrisjwood.com 

 

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Hey! Hold that Last Post!

If you read my last post about the possibility of Congress extending the tax credit you will understand the latest rush to get that offer in on properties out there.  Buyers are out in full force - at least, the ones who haven't found what they are looking for yet. 

As a quick amendment to my previous post, Congress has moved ahead with extending the First Time Home Buyer Tax credit for Members of the Military they deem as, "Qualified Service Members".  What does that mean you ask?  Well, Congress defines Qualified Service Members as a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.

Here is a link to the Federal Housing Tax Credit Website with additional information.  http://www.federalhousingtaxcredit.com/service_mem.php

For the rest of us, get a move on - the clock is ticking!

Chris Wood
REALTOR
Office: 513-791-2255
http://www.chrisjwood.com/
Star One Realtors

Tax Credit Extended...?

Don't Count on it.  While it is clear that the first time home buyer tax credit in it's current form has proven to be a decent stimulus package for the housing industry, it is unlikley that it will be extended.  Primarily as it is seen to have done it's job, to extend it longer would be to invite it's misuse on a large scale.  It is time for the housing market to step out on it's own two feet again.

While that will likely result in a downturn for the immediate future, I believe strongly that by 2011 we will begin to return to some normalcy in our local market - perhaps even sooner.

Below I have attached a letter, from our National Association of Realtors President, Vicki Cox Golder regarding the issue of a Tax Credit Extension.  It's a quick read, and she makes her point clear and early on - It's not going to happen.  So if you are a First Time Home Buyer Looking for a house now...Get a move on! 

Chris Wood
(513) 382-2474
Chris@chrisjwood.com

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From: Vicki Cox Golder, 2010 NAR President

Date: March 24, 2010
Re: NAR Update: Tax Credit

Dear fellow association leader:

As you know the deadline for the Homebuyer Tax Credit is fast approaching.  Buyers must have a contract in place by April 30, 2010 with a closing date no later than June 30, 2010 to claim the credit.

We expect that REALTORS will be asking you what the NAR is doing to extend the tax credit. NAR has had extensive discussions with our congressional allies and concluded that an additional extension of the tax credit is unlikely. While lawmakers recognize that the tax credit helped stabilize the market, it appears that much of the benefit has been realized.

NAR is now focused on working with our REALTOR Party champions to improve the availability of financing, which continues to be an issue. Specifically, we are working with Congress to strengthen FHA and to help develop a new business model for the secondary mortgage market giants Fannie Mae and Freddie Mac. You can follow our efforts on both fronts at www.Realtor.org/GovernmentAffairs.



Sincerely

Vicki Cox Golder, CRB
2010 NAR President

Deadline Looms...

As the end of April approaches, buyers start coming out of the woodwork like termites! Ahh, how we love to procrastinate! But there is hope - if you have not found the home of your dream and you would like to get that First Time Home Buyer Tax Credit, there is still time - but you had better hurry.

  To be eligible, you must have a property for sale in Cincinnati under contract by April 30, 2010 - then close it prior to June 30, 2010. This means you should be making your short list of properties and putting them in order. I have highlighted some process steps for you below:

1. Create a "Short List" of your favorite properties, Share this list with your agent. Much early prep can be done which can save you time later.
2. Tour the properties and highlight each individual property with a "Pros & Cons" list.
3. Eliminate properties that you no longer have interest in. The goal here is to get it down to 2, maybe 3 a the most.
4. Decide on your favorite and submit your offer. Make it a decent market offer - you do not have the luxury of drawing this out. and remember, there are other buyers out there looking at the same house - you don't want to risk losing your first choice in Multiple Offers.
5. Schedule your Whole House Inspection, immediately - do not wait. If you should find some hidden issues that are unaccaptable you want to move on to the next property, for both you and the sellers. (We'll talk more in another post about what is acceptable and what is not in an inspection).
6. Stay focused, and task oriented. And stay in contact with your lender and your agent. This is no time to drag your feet on getting any documents filled out.
7. Make a beeline for the closing table.

There are a significant number of moving parts to a home purchase, plan accordingly and stay focused on the prize - You, in your Own Home! You can do this...but you had better hurry!

Chris Wood

http://www.chrisjwood.com/
Mailto: chris@chrisjwood.com

Cincinnati Super Open House Weekend

The Greater Cincinnati Area Board of Realtors, has sponsored an open house weekend event March 20 and 21st.  The open house times run 11:30am to 5:30pm, with over 2,500 homes being held open over the weekend.  This is a great opportunity for buyers to get out and visit several homes for sale in the Cincinnati area.  

If you would like to locate open houses and their times, you can visit starone.com and complete a search for open houses right from the home page.  Doesn't get much easier than that!


With the first time home buyer tax credit coming to a close at the end of April, buyers are expected to be out in full force, snatching up those great deals...don't miss out on your great deal, call me today and I will email you a list of open houses and their times, specific to the areas you want to live in.  

Chris Wood
REALTOR
Office: 513-791-2255
Star One Realtors

Cincinnati Sales update for the Month of January

The numbers are out in review of January 2010 - what homes sold in Cincinnati and what didn't.  So here is the damage:
Residential sales for the month of Jan - 761, which is down -7.87% from the 826 that were closed in Jan of 2009.
Condo sales for January 2010 were 85, where is down -12.37% from 97 comparatively of January 2009.
Active Inventory:
Listed residential property saw a decline as well by more than 6% over January 2009, which is not a horrible thing as lower inventory can help to stabilize prices within the market.  As for those prices though:  up almost 12% with an average sold price of $137,025.  This is due in large part to a decline of almost 25% in lender owned properties on the market.
While it is normal this time of year for the market to be slow, I predict it will pick up in the upcoming months as the first time home buyer credit gores away on April 30, 2010.  There will be a big rush to get those offers in by the end of April.
 How the summer will go...well, that's a bit of a crap shoot, but I do believe we will see some normalization during the early summer months, followed by a decline and drought of sales late summer and early Fall.  Hopefully, I will be wrong.

Chris Wood
REALTOR
Office: 513-791-2255
Star One Realtors

Shopping in the Snow

Well, I guess the Farmer's Almanac was correct - we will be seeing significant snow fall between January and March this year!  How quickly can the tri-state adapt to these winter challenges?  More specifically, how quickly can our Real Estate Market adapt?  Buyers have been hard to come by for many sellers these days, and with all this snow many buyers are choosing to stay at home.  As a seller, what can you do to prepare your home for the wintery visitors that do brave the cold and snow?

For starters, make sure your driveways and sidewalks are kept clear of snow and ice!  Snow covered walkways don't just make it seem uninviting it's a liability risk for you.  From there, make sure that you have plenty of welcome mats or towels laid out at the entrance, especially if you are asking your visitors to remove their shoes before walking around the house.  You could consider providing those disposable shoe covers, but they can be a pain to put on especially if you are wearing snow boots.  Best way to approach it, is to plan for at least 3 people trying to get into your entry at the same time.

Once inside, you want the house to seem as inviting as possible, so warm is nice and very welcoming.  If the home is vacant but not winterized, consider leaving the heat on in the mid 60's.  That's warm enough that folks will appreciate it but low enough to save you some dollars.  On the same note, if the house is vacant - stage it!  You don't need to pack the house full of furniture to stage it, but a small piece in each room can help establish a reference point for the size.  Essentially you are just offering a perspective.

On a side note, candles should NOT be left burning in the house!  As an agent this always terrifies me when I walk into a home with numerous candles burning.  Approximately 15,000 homes burn every year due to candles.  If it's a smell you are trying to cover, the buyers will know it as soon as they walk in the front door.  It's better to purchase another scented alternative that plugs in or diffuses it's sweet smell into the room.

And buyers, remember, this is someone's home.  Respect their wishes and remove your shoes, if that's what they request...tell your agent to crank the heat once your back in the car.  Better yet, claim your dominion over the knobs and dials of your agent's car from the start! 

Chris Wood
REALTOR
Office: 513-791-2255
Star One Realtors