Entries categorized as ‘Buyers’
NEWS FLASH!! Homebuyer Tax Credit has been extended for 1st Time Buyers and expanded to include Current Homeowners who want to move!
Did you hear today’s news that government has passed an extension to the 1st Time Home Buyers Tax Credit AND have added another credit for current homeowners.
Here are some details that are the same for both segments of the bill:
- Both segments of the bill will be for transactions that go into contract between the date that Obama signs (Nov 6) thru Apr 30, 2010. The transactions must close prior to Jul 1, 2010.
- Income limits have been increased to $125,000 for singles, $225,000 for married couples.
- Limit on the price of the home is $800,000.
- Purchaser must attach documentation of purchase to their tax return.
Details for 1st Time Buyers
- Can receive up to $8,000 ($4,000 married, filing separate)
- Cannot have owned a home (principal residence) for the past 3 years
Details for Current Homeowners – NEW!
- Can receive up to $6,500 ($3,250 married, filing separate)
- Must have used their current home as principal residence consecutively for 5 of the previous 8 years.
- The new home you buy doesn’t have to be more expensive than the home you’re selling. In other words, you can downsize if you want.
While many 1st Time Buyers took advantage of the tax credit this past year, there was nothing to help the move-up market because those 1st Timers often bought REO, short-sale or foreclosed homes. The National Association of Realtors® and numerous real estate bloggers begged and pleaded for help with homes in the upper prices since they were often just sitting on the market.
This new program will benefit higher-priced buyers as well as help sell homes in the higher price ranges.
If you’re a higher-priced buyer, should you act now? Naturally, only you can decide that, but here are some things to consider:
- Interest rates have been hovering around 5%. Bernanke is watching for signs of inflation. If inflation begins to creep up, interest rates may be allowed to increase to stem inflation. They know that this could slow real estate’s recovery, and they really need the real estate market to improve, so it will be a tough decision.
- If this new bill works as we hope it will, increased demand may actually cause prices to rise somewhat.
- If you were thinking of putting your home on the market next year, you may want to move up your timing to take advantage of these tax credits both for you and for the appeal to your buyers.
- Also, if buyers act on this program by April, that may mean that demand will be lessened (exhausted) by the end of April. If demand decreases afterward, so will your potential price.
A 1-point interest rate increase will cost you far more than waiting for prices to decrease further
For instance in the example below, a $200,000 price with 3.5% down at a current interest rate of 5%, would result in a mortgage payment (P&I) of $1,036. At 6% interest, the payment would be $1,158. Over 30 yrs, that will cost you an additional $43,772. Even if the price comes down $10,000 to $190,000 but the rate increases to 6%, your monthly payment would be $1,100, costing you an additional $22,928. If the price increases just 5% and the interest goes to 6%, then you would pay an extra $179 per month.
| Home Price |
$200,000 |
| Price Chg |
-5% |
No Chg |
+5% |
| New Price |
$190,000 |
$200,000 |
$210,000 |
| 3.5% Dwn Pmt |
$6,650 |
$7,000 |
$7,350 |
| Mtg Amt |
$183,350 |
$193,000 |
$202,650 |
| P&I at 5% Int |
$984.59 |
$1,036.41 |
$1,088.23 |
| P&I at 6% Int |
$1,100.10 |
$1,158.00 |
$1,215.90 |
Naturally the higher priced the home, the greater the savings. Notice that the money coming from Uncle Sam hasn’t even been included in the above data. Interested or want more info? Give me a call and we’ll get your home on the market.
View comparison chart to the 2009 Tax Credit
Read FAQ’s for New Tax Credit
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Home buying process · Home prices · Home selling process · Homes · Homes for sale · Housing stats · Sellers
Tagged: central ohio real estate market news, first-time home buyers, home buyer tax credit
It’s the time of year when snowbirds are beginning to make plans for their trek south to warmer climates for the winter. Some go there at the first hint of cold while others wait till the holidays are over. Ohioans seem to favor Florida or Arizona for their winter havens.
Because these empty-nesters are on-the-go, active people they are prime candidates for trading in the “family” home for an easy-care condo. A condo is perfect for people who spend 6-months here and 6-months “there”. That way there are no worries about finding someone to mow lawns or clear snow while they’re gone.
If this lifestyle is appealing to you or if it has been part of your retirement plans, now might be a good time to purchase your northern condo. Since it’s the end of our buying season here, you might be able to get a better deal than if you wait till next spring. Sellers know that their season is ending, so they may be a little more willing to negotiate.
Right now there is a really good selection of condos in all price ranges, especially under $400,000. Here is what is on the market in southern Delaware County as of this morning:
- Under $200,000: In the Powell area there are 40 condos with an average size of 1584 sq ft and an average price of $171,000. In the Lewis Center/northwest Westerville area there are 56 condos with an average size of 1473 sq ft with an average price of $160,000.
- In the $200’s: In the Powell area there are 27 condos with an average size of 2155 sq ft and an average price of $239,000. In the Lewis Center/northwest Westerville area there are 21 condos with an average size of 2196 sq ft with an average price of $250,000.
- In the $300’s: In the Powell area there are 32 condos with an average size of 2658 sq ft and an average price of $348,000. In the Lewis Center/northwest Westerville area there are 7 condos with an average size of 2577 sq ft with an average price of $349,000.
- Over $400,000: In the Powell area there are 7 luxury condos with an average size of 3182 sq ft and an average price of $529,000.
If this lifestyle is in your plans, give me a call to review your next steps and to discuss what the options are that meet 
your specific needs and criteria. There is time to buy and move into your new place before you cast aside your winter coat in favor of those Jimmy Buffet shorts you have in the closet.
Oh-no … my eyes … my eyes!
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Condos, patio homes · Delaware County · Golf Village, Kinsale · Golf course communities · Home buying process · Homes · Homes for sale · Lewis Center Ohio · Powell Ohio · Scioto Reserve · Wedgewood
Tagged: central ohio real estate market, luxury condos, winter snowbirds
There are a number of people on the Internet who profess to be real estate experts. A lot of them have never sold a home. They’ve never sat across the kitchen table with people planning to sell their home. They’ve never shown a home to buyers looking for a “champagne home on a beer budget”. Yet, they make a substantial income holding seminars to tell us (Realtors®) what we need to do to do it RIGHT.
Yesterday I attended such a class at our Board. In this case, the presenter actually was a real estate agent. His topic was Social Media Marketing, which means marketing ourselves and our listings, using such venues as Twitter, Facebook, LinkedIn, etc. He also spoke on the importance of photography and video in our marketing.
Because I’ve been using social media for over three years, much of what he said wasn’t new-news to me. I didn’t agree with everything he said, but I’ll allow that each market (and agent personalities/goals) are different so we adjust as needed. I DID like how he is executing and editing the making of videos and plan to incorporate that technique.
In following up with some of the information he gave us, this morning I checked out his web site and blog. There are several online analytical tools that I can use to measure the effectiveness of having my sites be crawled by Google, such that when someone performs a search for “homes for sale around Hoover Reservoir“, they find my blog on page one of the search results. At least that’s what I strive for.
Guess what! Both my web site and this blog outperform his web site and blog by a fairly wide margin. Also, Google hasn’t crawled his blog for a week, whereas Google crawled this blog today already. So does this make me an EXPERT? Should I go on the speaking circuit? Nah! I’m just glad to know that my marketing efforts are working, and that it’s helping to sell my listings and provide buyers and sellers with the info they need to make informed decisions.
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Advertising · Buyers · Central Ohio · Delaware County · Galena Ohio · Home buying process · Home selling process · Internet · Realtor® selection · Sellers · Technology
Tagged: central ohio real estate market news, Hoover Reservoir home for sale, real estate expert, social media marketing
Over 80% of the home buyers start their home search on various Internet sites. Sellers select their Realtor® based on how many Internet sites the agent displays the home. Conscientious agents make sure the home is featured in the best way possible by making sure the photos are as best as they can be. Now what happens when the most basic of information about the home is WRONG or MISSING?
Recently, I was pulling info for a specific neighborhood. I knew every home that was for sale in this particular community. However, when I did the computer search a full 25% of the homes were missing from the search. WHY?
I did some digging and found that there were errors or omissions to the original data entry into the MLS system that was incorrect and/or missing. That’s why it is important for an agent to actually print out a hard copy to make sure the spec sheet looks as we intend. Let’s face it … typos happen.
So, Sellers, ask your agent to show you the MLS spec sheet. Is all the data correct? Are there missing search fields and if so, should those boxes be blank or not? You can’t afford to miss showings in this market because of certain errors, so be proactive to make sure your home can be found by Internet buyers who might be searching for a home just like yours.
Buyers, as you are sitting in your jammies doing your home search, consider that your perfect home may not be showing in the search. That’s why it is important to work with a Realtor® who knows the area or knows how to search the data to override the chance that some homes might be missed by a typical computer search.
As the saying goes …GIGO … garbage in, garbage out. Computers only work as well as the agent who input the data.
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Advertising · Buyers · Central Ohio · Delaware County · Home buying process · Home selling process · Homes · Homes for sale · Internet · Sellers
Tagged: Internet search for homes for sale
How will homes sales be the next three months now that the time has passed for the 1st Time Home Buyers? That’s what a lot of Realtors® are wondering. Will it be a “normal” fall period? Will it go into a slump as happen
ed after the “Cash for Clunkers” program ended?
Wait a moment while I get out my crystal ball.
The Oct-Dec period is normally slower because people are busy with holidays. However, the buyers that are shopping are SERIOUS buyers ready to make offers. Even though the weather may be less than ideal, the homes inside often look very attractive with minimalist holiday decorating.
Buyers are eager to get in their new home by the year-end holidays. Sellers are eager to have their home sold prior to the cold months of Jan-Feb. So it can be a great time for negotiations.
I checked to see how the Delaware County market did last fall (Oct-Dec) and compared that to homes currently for sale. Actually, quite a few homes sold last year, which is a positive sign for sellers. The caution for sellers is to consider last year’s average SOLD price, and perhaps adjust their price now for a greater opportunity to go into contract.
Delaware County Fall Sales
| School District |
# Sold Fall ‘08 |
Avg $ Fall ‘08 |
# For Sale Now |
Avg List $ Now |
| Olentangy SD |
175 |
$325,195 |
674 |
$496,204 |
| Big Walnut SD |
26 |
$211,417 |
146 |
$492,658 |
| Buckeye Valley SD |
37 |
$177,049 |
109 |
$344,355 |
| Delaware SD |
72 |
$151,390 |
156 |
185,026 |
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Delaware County · Delaware Ohio · Galena Ohio · Home buying process · Home prices · Home selling process · Homes · Homes for sale · Housing stats · Lewis Center Ohio · Powell Ohio · Sellers
Tagged: Olentangy school district, central ohio real estate market news, Big Walnut school district, Buckeye Valley school district, Delaware school district
The luxury home market has had a tough year in 2009. With the economic stimulus favoring the lower end market, upscale homes have encountered slower than normal sales. This seems to be a nationwide problem as reported by other Realtors®.
The following graph reflects monthly sales by price range for just southern Delaware County. Also provided are the number of active listings currently for sale. The important take on this data is the absorption rate, which is how long it will take to sell the current listings based on the sales for the past nine months. For instance, there are 40 active listings priced in the $700,000 range. Between Jan-Sep, 15 such homes were sold. Based on that sales rate, it will take 2 years to sell the current inventory of 40 homes.
Normally, Realtors® will advise sellers to lower their price to the next lower bracket to attract a buyer. However, this chart would seem to indicate that for these upscale homes, that will not have the effect that it can have in lower priced homes. There are simply too few buyers in these upper ranges. Therefore, sellers need to make sure their home is priced at or slightly below the market to have it have maximum appeal to the few buyers that are shopping. Everyone wants to get a good deal, and that applies to the upscale buyer as well as the first-time buyer.
Click to enlarge chart
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Delaware County · Home prices · Homes · Homes for sale · Housing stats · Sellers
Tagged: central ohio real estate market news, luxury homes in central ohio
The timing to take advantage of the $8,000 1st Time Home Buyer’s Tax Credit is basically over since the closing must occur by Nov 30. Nationally and locally, real estate agents believed it helped sell lower priced homes but did little to stimulate home sales priced over $300K. While REO’s, short-sales and foreclosure inventories may have been reduced, these homes do nothing to benefit the move-up market since they aren’t owned by sellers who plan to buy a different home.
I’ve spoken with other agents who say they have noticed a decline in showings in the past week, especially over $300K. I decided to explore how showings have been the past month by using the market reports from Centralized Showing Service, which is the company most brokers use to conveniently set up our showings.
As the graph shows, there is a substantial difference in the number of showings in the lower price ranges. The chart is by zip code which means 2 or 3 school districts can be in one zip. (CSS reports don’t allow for a search by school district.) If your home is currently for sale or you’re planning to list your home, this will give you an idea as to what you might expect for the number of showings based on your price range or zip code.
Click to enlarge graph, then click again to read zips
If your home isn’t yet listed and you would like to see data for your specific home, give me a call or email me.
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Delaware County · Delaware Ohio · Dublin Ohio · Franklin County · Galena Ohio · Home prices · Homes · Homes for sale · Housing stats · Lewis Center Ohio · Powell Ohio · Sellers · Worthington Ohio
Tagged: central ohio real estate market news, home showings by zip code
We’re now through the 3rd Qtr, so it’s time to see how home sales compare versus prior years. There’s been much discussion as to whether we are or aren’t in a recession. I think the politicians have one opinion and people in the “real” world have another.
Some statisticians have looked hard for a glimmer of hope with some minor upticks to housing stats this past summer. Some of that was created by the 1st Time Buyer Tax Credit. While it helped to deplete low priced inventories, it’s being said that a lot of those sales were short-sales or bank-owned properties, which do nothing to sell UP to more expensive homes.
As you can see from the charts below, the number of homes sold so far this year is substantially below what was sold in 2005. Some experts say that a number of those people buying in 2005 should not have bought because they were doing 100% financing or they were poor credit risks. Perhaps, we should not expect to return to 2005 levels. It is good that now buyers are being expected to “have some skin in the game” with down payments.
Delaware County
| |
2005 |
2006 |
2007 |
2008 |
2009 |
| # of Homes |
1983 |
1908 |
1797 |
1598 |
1429 |
| % Chg |
- |
-3.8% |
-5.8% |
-11.1% |
-10.6% |
| Avg Price |
$306,352 |
$311,652 |
$303,299 |
$294,747 |
$273,098 |
| % Chg |
- |
+1.2% |
-2.7% |
-2.8% |
-7.3% |
For the Jan-Sep period, 28% fewer homes were sold in Delaware County in 2009 vs 2005. The average price of those homes saw only an 11% decline. Franklin County was similar in that 31% fewer homes were sold in 2009 vs 2005 and the average price was just 13% lower. Considering what some states have encountered, having our prices go down such a small amount over a 5-yr period is really pretty good. The higher decline rates for the number of homes sold, is just indicative of fewer buyers being able to afford a home given the new lending guidelines.
Franklin County
| |
2005 |
2006 |
2007 |
2008 |
2009 |
| # of Homes |
11,549 |
10,726 |
10,015 |
9,157 |
7,932 |
| % Chg |
- |
-7.1% |
-6.6% |
-8.6% |
-13.3% |
| Avg Price |
$176,884 |
$173,722 |
$167,563 |
$158,462 |
$154,027 |
| % Chg |
- |
-1.8% |
-3.5% |
-5.4% |
-2.8% |
SOURCE: Columbus Board of Realtors MLS system. Data is for single-family homes only. Builder’s homes are included only if they were listed in the MLS system. Condos are not included.
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Delaware County · Franklin County · Homes · Homes for sale · Housing stats
Tagged: 5-yr homes sold comparison, central ohio real estate market news
Home buyers today are smarter buyers and are looking at the “total package” that a specific home offers them. While the neighborhood, schools and floor plan are still at the top of the list, there are other considerations to keep in mind as well.
- Property taxes: There can be quite a difference to the property taxes charged depending on the school district and taxing district where the home is located. Overlay this information with any local income tax that may or may not apply. You may find that a slightly higher property tax rate may allow you to pay less in local income tax depending on where your income is earned. Consult with your accountant if you think this may apply to you, then use that info to decide if a property’s location matters to the local taxes you will pay or save.
Heating/cooling/windows: Naturally the quality of the windows can have a tremendous impact on heating/cooling costs. The efficiency and age of the furnace and AC units can also affect costs and your comfort. When homes are a certain size, they may have zoned systems for better efficiency. There may be 2-3 HVAC units which may be better long-term than having one system work extra hard. You can also have each system set for different temps, depending on the floor plan and your comfort needs. Consult with an HVAC company for advice if the home is around or over 4000 sq ft.
Home Office: Questions for an accountant, for sure. Would you derive a tax benefit to operating a home office? If so, you might want to add “den/office” to the features you want in a new home. Talk to your home insurer to see if you should have an exclusive entrance if the public will be coming to your home. Also, check local zoning codes to see what the restrictions are for having a home business. With more people telecommuting or setting up an online business, having a nice home office can be a real plus.
Vegetable Garden: No longer is growing your own food a trendy thing to do. It’s back to basics for some who want to ensure their food supply is safe. You’ll also save quite a bit of money as well. Most newer subdivisions have restrictions that don’t permit “growing crops”. Yes, that salad garden of tomatoes and lettuce is considered a “crop”. If being able to grow your own veggies is important to you, be sure to check the deed restrictions to see if you’re allowed to have a garden.
Alternate Heat Source: We know that the typical fireplace is not efficient because the heat goes up the chimney. But if you have a ready (free) supply of wood, a wood stove can sometimes be used to heat the home or at least a portion of it, thereby saving some on the cost of your main heat supply. These stoves can also be wonderful if a severe winter storm causes the electric to go out. Huddle around them, keep your tootsies warm, and make a few S’mores.
As a buyer, if you’ve narrowed your home search down to 2 or 3 homes, you might just want to consider some of these other not-so-common features in the homes. When you do, you may find quite a difference in the overall costs – or savings – that one home offers over others. Of course, we can’t put a price on quality of life for the duration that you will be living in the home. However, if you know you’re saving money during that time, you’ll enjoy the home a whole lot more.
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Home buying process · Homes · Homes for sale
Tagged: energy efficient windows, real estate property tax rates, saving money on a home, vegetable garden, wood-burning stove
Elaine Reese
614-825-8860Real Living HER
What “extras” will you get when buying a home?
10/04/2009 · Leave a Comment
I’ve often referred my readers to Kristal Kraft’s Denver blog because I love the photos she takes of the gorgeous terrain they have there. They say that people are either beach or mountain people. I’m a mountain person no doubt about it. That’s probably because I’ve never had a body suitable for the beach plus I’ve never recovered from the Jaws movie. I traveled to Colorado a few times in my previous career and find the state to be magnificent for its views and wonder.
Anyway, back to Kristal’s blog. She just wrote a great – and fun – post about what “property” actually conveys when buyers purchase a home. With all the extra wildlife they have in the Rocky Mts, buyers often buy more than just the property. You must read her recent post. Wait till you see the awesome photo at the end of the post.
While we don’t have some of the wildlife that Denver has, we do have sellers who may feed birds who wonder what the birds will do if the new buyers choose to not feed them. The birds come to rely on filled feeders, especially during the winter. If the new buyer doesn’t continue that feeding, the birds must find another food source. If that means moving into another flock’s territory, they may not fare so well. If you will be buying such a home, perhaps you can do what the buyer in Kristal’s post is doing by weaning them off the reliance of the food source. OR maybe you can just continue to feed the birds and be ready to enjoy their antics or their babies next spring.
Categories: Buyers · Commentary · Home buying process · Homes · Homes for sale