Tag Archives: central ohio real estate market

Now or Later?

Posted on 09/20/2010 | Leave a comment

The real estate market isn’t out of its doldrums yet. We keep asking ourselves if this is the new “normal”. At a recent meeting, the speaker mentioned that the number of homes being sold now, is very similar to the number that sold in the 90′s. It only feels different now because we’re coming off the unsustainable highs of the early 2000′s.

What should home buyers do?

While it sounds very trite, it really is the best time to buy that we’ve in many years. The reason is the historically low interest rates. If your credit rating and debt/income ratio is good, you’ll likely qualify for a rate around 4.5% or lower. I’ve been receiving inventory emails from builders who are offering specials with some rates below 4%. There is also an ample supply of homes available in all price ranges and styles. Most of the homes are priced very competitively and some are priced near or below what the owners initially paid for them. If you’re currently renting, there’s a good chance that your mortgage payment may be the same or lower than your rent, plus you might get the extra property tax and mortgage interest deductions on your IRS taxes.

What should home sellers do?

It’s a little tougher to answer this question and it depends on whether the homeowner is willing to be realistic on their price. Since there is competing inventory, it’s not the time to overprice the home, plus, the home must be in tip-top shape to show its best. If the home meets that criteria, then now would be a good time to put it on the market since the interest rates are so low.

I recently had a seller ask me if it would be better to wait until next year. I can’t answer that – I’m not that smart. There are too many unknowns with the government right now that could seriously impact next year’s market. Aside from the upcoming November elections and how those results will influence the market, I’m most concerned with watching what is done with the so-called “Bush Tax Credits”. Based on the details my CPA provided to his clients, if these tax credits are allowed to expire, we will all see tax increases and lower deductions on our IRS forms regardless of income. We could also see more damage to the jobs market if the tax increases create havoc for small businesses. Higher unemployment and less disposable income would certainly not benefit the real estate market. We’ll just have to see how this all shakes out.

Talk to your favorite Realtor®

The best advice I can give, for both buyers and sellers, is to talk with your favorite Realtor® and a lender, if you’re going to buy. The agent can do a comparative market analysis to estimate a selling price on your current home. Then by also meeting with a lender, you’ll have an idea on the price of home you qualify for based on your down payment. If you don’t already have a favorite Realtor®, I’m available to help you. Just call me.

Copyright © 2010. 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.

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Posted in Buyers, Central Ohio, Home buying process, Home prices, Home selling process, Homes, Homes for sale, Sellers

Tagged central ohio real estate market

Home ownership vs real estate investing

Posted on 09/18/2010 | Leave a comment

Do we need an attitude adjustment? In recent years, the media has spoken of “the real estate market” as if it were the stock market. It’s only similar for those people who buy/sell land for the potential to turn it at a profit, i.e. investors.

The majority of people buy a home to live in, to enjoy weekends in, to raise the kids in, and to create their own family memories. These people know they’re not buying a stock or mutual fund to add to their portfolio. They’re fulfilling the bottom rung of Maslow’s Hierarchy of Needs for shelter. So should they buy based the expected ROI they may receive when they sell?

Let’s consider other purchases we make. Next to the home mortgage, our largest purchase is probably our cars. Does anyone purchase a car with the expectation that it will be worth more than what we paid at the time we sell it? Of course, not. We know that the moment we drive it off the lot, it is no longer valued at the purchase price. Does that fact alone stop people from buying cars? No. They’re just more conscientious with their loan amount, to ensure they keep the car long enough to owe less than the car is worth when it comes time to sell. How many times have you heard someone say they’re going to “drive it until the wheels fall off”?

Another big purchase may be your or your child’s college education. The timing to get that money back via higher income potential was likely a lot shorter years ago than it is today when it’s so hard to find a decent paying job. Yet, we still believe that having a college degree is a valuable asset in the long term so people continue to spend their money on the education.

There are many other purchases that we make year in and year out, where the goods lose value as we use or enjoy the product during its lifetime. Our homes are the ONE item we purchase that has the potential to increase in value while we own it. Even if the value increase is modest, we still have benefited from the IRS deductions for interest and property taxes. But more importantly, our homes – unlike our stock portfolio – become an integral part of our daily lives and our memories.

Buy a home for the shelter it provides, for the schoolmates your child will befriend, for the yard your kids or pets will enjoy, for the good times it gives at holidays, and for the enjoyment of the summer BBQ’s with friends. Stop buying as if it were an inanimate oil or technology stock.

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Posted in Buyers, Central Ohio, Home prices, Homes, Homes for sale, Sellers

Tagged central ohio real estate market, home ownership

This isn’t Charlotte’s web

Posted on 08/29/2010 | Leave a comment

Is your home on the market for sale? Have you noticed this early sign that fall is around the corner?

spider web

Yes, the spiders are busy building their webs. Often they build them in the covered area around the front door. If your home is for sale, you need to pay special attention to keep the webs removed. Buyers tend to stand longer at the front door as the agent removes the key from the lockbox. So, you want to make a good first impression and have the area look as nice as the interior will look.

We’ll talk about fallen leaves in another month. Why did the summer go by so fast!

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Posted in Central Ohio, Delaware County, Fix-ups, Home selling process, Homes, Sellers

Tagged central ohio real estate market

Know when to “fold ‘em”

Posted on 08/18/2010 | Leave a comment

Can a real estate agent decline your business when you are buying or selling a home? The short answer is ‘yes‘. That’s because real estate agents are self-employed and can operate their business as they choose … as long as it’s done legally.

Why might an agent not take my business?

The primary issue is often HONESTY or TRUTHFULNESS. If the agent suspects you’re not being truthful in the information you’re providing, they may be cautious about working with you.
RESPECT and TRUST might also be a reason. Few people want to work so closely with someone who doesn’t respect them or might treat them rudely, but that’s true for many industries, not just in real estate.
UNREALISTIC EXPECTATIONS can lead to frustrations down the road. Sellers who want to overprice their homes regardless of what the comps indicate may have a hard time finding an agent to list their home. Likewise, buyers who are determined to to buy a home for 80% of its list price regardless of the competitiveness of the list price, may find themselves without an agent to drive them around neighborhoods writing countless offers.
FAILURE TO ACT to prepare to sell or buy, such as cleaning the home properly, making suggested repairs or meeting with a lender to get pre-approved prior to viewing homes.
OUTSIDE THE AGENT’S AREA of expertise or geographical area may cause an agent to decline. Currently, numerous agents are not working with short-sales or REO’s. Some agents may not want to work with farmland because they feel they lack the expertise required. Still other agents may have a policy to not work beyond a certain number of miles from their home base or office.
Some agents don’t work with THIRD PARTY RELOCATION sellers or buyers. These are clients taking new jobs in other areas and the new employer has hired a 3rd Party Relo company to handle the move. The agent must pay 38% or more of their commission to the Relo company. With other financial requirements from the Relo company, an agent may make only 45% of their normal income. If the time involved with the Relo client cuts into the service level the agent is able give a regular client, the agent may refuse the Relo business.

Just like any other company or business, real estate agents have a business plan with target markets, sales & income objectives, and the need to control overhead costs. Remember, while you are interviewing the agent to see who YOU want to work with, the agent is subtlety interviewing you to see if your goals/intentions fit their biz plan. Sometimes it’s a good fit and sometimes it’s not. To reference Kenny Rogers’ song, gotta know when to hold ‘em & when to fold ‘em.

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Posted in Buyers, Central Ohio, Home buying process, Home selling process, Homes, Homes for sale, Realtor® selection, Realtors®, Sellers

Tagged central ohio real estate market

Wedgewood Golf & Country Club in Powell – a tour

Posted on 07/17/2010 | Leave a comment

Wedgewood Golf & Country Club is the focal point for the Wedgewood subdivision in Powell. The area was part of the BIA Parade of Homes in the early 90′s, with two main streets circling the main part of the golf course. Wellington Bl aligns along the west side then circles around to the south where it then becomes Fairway Dr which runs parallel along the east side of the course.

Soon after you enter the subdivision (on Wellington Bl) there are three streets (Oxford, Tavistock & Gleneagle) which contain patio homes, sometimes called cluster homes due to their smaller lots. This style of home is popular for people who want a large luxury home but with less lawn care thanks to smaller lawns.

Yesterday I mounted my camera on my dash as I drove around the area. It may appear that I was speeding, but trust me, I was going less than the posted 25 mph limit. I think it’s the camera angle … at least that’s my story and I’m sticking to it.

So far this year, 14 homes have sold in Wedgewood at an average price of $550K. The highest price so far this year is $910K. In the Fairway Dr area there are many free-standing and attached condos or fee-simple homes. YTD, three have sold at an average price of $236K.

Wedgewood is located in the Olentangy school district and in Liberty Township which is outside the city limits of Powell. Visit these other sites for more information:

Wedgewood Homeowners Association
View a patio home
See a Google map of Wedgewood subdivision

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Posted in Central Ohio, Delaware County, Golf course communities, Home prices, Homes, Powell Ohio, Wedgewood

Tagged central ohio real estate market

What’s your “don’t want” list when buying a home?

Posted on 06/13/2010 | Leave a comment

church steeple Do you have certain “things” you don’t want in a future home? Has that changed over time?

A number of years ago, when showing a home located near a church, the buyer said ‘no’ to the home because they didn’t want to have the church bells disturb their Sunday morning.

While some buyers like being close to elementary schools for convenience with their own kids, others don’t like the bus traffic or the paper litter that gets dropped when kids walk home from school.

Trains and traffic noise are two issues that can generate mild or strong opinions. I had one buyer tell me they didn’t want to hear trains – even in the distance. Because the central Ohio area is such a major transportation hub, it’s hard to find a home that doesn’t hear a train even in the distance.

A neighbor with a basketball net set up can deter buyers from a neighboring home. The big trampolines and pools can do the same. With the basketball net, it’s the bouncing ball noise that is thought bothersome. Trampolines and pools generate noise from happy kids.

DOGS! I think I’ve read that half the households have a dog. Often those that don’t have one, plan to get one after they buy a home. A neighbor’s noisy dog can become an aggravation. (The Murph probably qualifies, except his fence friends are just as noisy.) People with dogs will also consider how convenient a home’s floor plan is to getting the dog out to the backyard, how acceptable the backyard is for a dog, and often whether a fence is permitted.

Golf course lots are desired by some people, but I’ve found those that want such a lot, will carefully evaluate the likelihood that stray balls can/will hit the home. Some view the passing golfers as ‘friends they haven’t met yet’, while others see that as an intrusion on their privacy as they sit on their patio.

Lots of people think having a wooded lot is very desirable. Those that have owned such a lot, may cite that mosquitoes, deer, carpenter ants and leaf-clogged gutters are a problem.

Over the years, I’ve found that when I meet with buyers to discuss their criteria for a home, first-time buyers speak in terms of “I want”, while experienced buyers have a list of “I DON’T want”. I fall in that latter category as my “Don’t Want” list is longer than my “I want” list.

No, I’m not going to reveal my “wants or don’t wants”, but suffice it to say that a few on the list revolve around DOGS.

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Posted in Buyers, Central Ohio, Home buying process, Homes

Tagged central ohio real estate market