Keepin’ it REAL Estate

Its common misconception that when the feds cut interest rates, mortgage rates will in-turn go down.  But what many people don’t understand is that the Fed can only control the Discount Rate and the Fed Funds Rate. This is very different from mortgage rates. A mortgage rate can be in effect for 30-years and a rate that is set by the Fed can change from one day to another.  Another common mistake is in thinking that 30-year Treasury bonds or 10-year Treasury notes are directly pegged to mortgage rates. Those are government securities that are backed by the full faith and credit of the U.S. government and have no direct effect on mortgage rates.

So how ARE mortgage rates calculated?

Fixed-interest mortgage rates are set by markets based on long-term money rates, not short-term rates. If bond investors fear that the Fed is letting inflation get out of control, then long-term rates could rise. Mortgage-backed bonds known as Mortgage Backed Securities (MBS) are bonds issued by Fannie Mae and Freddie Mac (MBS) and the trading performance of those bonds will determine the direction of mortgage rates.

“Mortgage rates are going to be attractive for quite some time,” Bill Hampel, chief economist for Credit Union National Association said, suggesting that the weakness in the economy will keep long-term rates from rising too much.

In turn, no-one knows how long these great rates are going to last.  Home prices are low and rates are low as well.  Why not lock yourself in at a great 30yr fix?  These rates definitely won’t last forever and neither will these home prices.

If you’d like to know more about the Cincinnati housing market or if you’re in the market to purchase a new home, I’d love to talk with you about just that!  Feel free to email/call me anytime.

The biggest question I get these days is “how much is my home worth now that the market is going down?”  This is a good question and it involves a lot of research.  Any real estate agent will come in and do a FREE CMA on your home.  Most of the time they’ll pull recent solds and active listings in the area similar to your home and property and base it on that.  A skilled agent will go even further in a down market, they’ll pull the recent expireds similar to yours as well and they will  preview the surrounding actives in your neighborhood.  If you invite an agent over to list your home and they haven’t been in the houses that they’re comping, watch out.

As an full-time real estate agent working in Cincinnati I preform my listing appointments in two segments.  My first appointment will be to go and preview your home, meet you and see what condition it is in.  When I leave I will go and really do my research and preview other homes in your area and see how they compare.  The second appointment will be to show you my marketing plan and also give you a price for your home.  Its so hard to price a home these days without having been in it to see how it compares with others out there.

When going to list your home, just don’t go with any agent.  Find one who is working full time and takes the business serious.  If they work hard for you before you even decide to go with them, then they’ll work even harder for you after you list!

If you’d like more information on the selling process or would like me to come and preform a FREE CMA on your home.  Please give me a call!  I’d love to work hard for you.

I met a few different people at an open house last weekend who were interested in listing their home, but they were under the impression that realtor’s don’t do anything and that they were going to try listing it themselves.  If you want to try FSBO (for sale by owner) then go ahead.  But like many areas of our lives we think we can do it ourselves, but soon realize that we really do need a trained professional.  For example; I can muddle through my own taxes and probably do a decent job at it, but how many EXTRA hours is it going to take me and if I pay a professional to do it for me, they could probably get me more money in the long run…

So, these encounters got me thinking.  I need to make a list of reasons why to use a Realtor.  Below is just a sampling of what I’ve come up with.  I’d love to hear from you to see if you agree or disagree or have some ideas of your own!

Also, if you’d are thinking about listing your home in the Cincinnati area I’d love to speak with you and show you how I can get your home sold, even in this market.

Enjoy…

1. I have extensive knowledge of neighborhoods.  This is my full-time job.  I’m working hard to know the area and previewing as many homes as I can per week.

2. I have knowledge of recent comps – What has sold, how much for and had previewed the home while it was on the market.  Often times you know the inside scoop on particular homes in the market and the reasons why they sold for what they sold.

3. Access to all MLS data.

4. I often have inside track access to properties that have not yet hit the market – “pocket listings”.

5. I know how to price and justify the price of your home. Home owners may know what one or two homes near them have sold for, but they don’t have the access to the wide number of comps I do or the market knowledge to adjust pricing.

6. I can sell your house for more money. According to the 2003 NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers, the typical FSBO home sold for $145,000, compared to $175,000 for a salesperson-assisted home. This means that even if FSBOs pay you a 6-percent commission, they will realize $164,500.

7. I know how to market your home using the proper selling procedure.  I don’t just put a sign in the yard and walk away.  I work to set up a strategic marketing plan, fit to sell your home.

8. I will generate and create excitement with other agents in my home office.  I will be your cheer leader, advocating for your property every chance I get.

9. I understand how to structure your deal.  No two deals are ever the same and each one needs expert care and advice.

10. I have methods of screening buyers.  I don’t work with buyers who aren’t qualified and will not accept a contract from buyers who have not been pre-approved to purchase your home.

11. I work hard so you don’t have to.  Often times, homeowners don’t recognize how many actual hours a realtor spends on just their home, working from listing to closing.  I know ways of working the sales process effectively and efficiently, so that you don’t waste or loose time.  I work hard so you don’t have to.

12. I know how and when to step in when there are buyer financing problems

13. I have experience dealing directly with buyer’s objections and complaints (including shielding you from personal interaction with buyers). All owners have emotional attachments to their homes and will emphasize the features they consider most desirable during a showing. However, as a trained professional, I am more attuned to the buyers’ needs and able to highlight the home’s features that have the most appeal to each buyer.

14. I have methods of dealing with buyers agents directly and professionally.

15. I have motivation to keep buyers on their closing time-line.

16. I know the best ways to keep the closing on track so that we have a successful and easy close.

My original thoughts for today’s post was going to be Cincinnati Real Estate Market related.  The feds have lowered interest rates again and buyers are really starting to come out of the woodwork.  I’ve got my weekend filled with showing many prospective buyers homes all over Norwood, Oakley, Hyde Park, Downtown and more!  Sellers, cross your fingers because the Cincinnati real estate market looks as though its turning a page.  If January looks promising, imagine what March and April will bring? Thinking I needed to organize myself a bit and tired of watching television with no writers, I set my sights on my favorite little coffee shop in Norwood “the speckled bird cafe“.  Upon my surprise I walked in and saw that it was open mic night and absolutely PACKED, not a seat left (literally, I’m nestled int he corner sitting at the kids table, enjoying a hot cup of coffee and a homemade biscotti).  There is spoken word, musicians, poetry and more.

So, what you may be asking is this post about?  Its about how this little coffee shop in the middle of west Norwood Ohio is changing the face of the neighborhood.  Its about the special little places of a neighborhood keep its residents there and bring new ones in.  The speckled bird is doing just that.  This little gem of Norwood was started over a little more than a year ago and has just grown by leaps and bounds.  Their coffee and espresso drinks are some of the best I’ve ever had!  They buy their coffee local roasters and its freshly roasted weekly.  They have a full menu selection of homemade sandwiches on freshly baked bread, homemade soups and a wide variety of beverages.  My favorite is “Crepe Sunday” - their crepes are absolutely amazing!  Their hours are even conducive to the traditional coffee shopper and student- open week days 9-2 and 7-midnight - Saturday 9-midnight and Sunday 9-4.  The only day that they are closed is Monday.  If you haven’t checked them out yet, you’re missing out!  They’re located at 1766 Mills Ave, Norwood OH.  Watch out West-Norwood, we may not recognize you in a few years.

Having trouble deciphering the mortgage market these days?  Do you ever have mortgage questions and you don’t know where to turn? Well, you’re not alone.  Check out www.morgagefit.com  This is an online community that can help answer you easy to complex mortgage questions.   There is no common answer to varied mortgage issues. So as a community, their members provide personalized knowledge and guidance on mortgage and related issues.   You can discuss all your financial issues with others who have been in similar situations as only someone who has “been there” can really know how to help.

Its a pretty neat website to discuss and get answers to questions that arise concerning your financial situation.  With the market changing daily, this website community can answer your questions fast and accurately.  Go ahead, challenge them with your toughest mortgage/financial question - I dare you…

Yes, with the mercury dipping lower and lower these days, I thought I’d turn our attention to SPRING! Here are a few spring home maintenance tips I’d like to share. These are great for homeowners looking and not looking to sell their homes.

1. Inspect your smoke detectors. Make sure that there is one on each floor of your home. Test them and change the battery every three months or as needed.

2. Check the light bulbs in all your fixtures to be sure that they are the correct wattage as recommended by the manufacturer.

3. Replace all high-intensity bulbs (such as halogen_ with fluorescent bulbs that don’t produce as much heat.

4. Check your electrical outlets for potential fire hazards such as frayed wires or loose-fitting plugs. Be sure not to overload electrical outlets, fuse boxes, extension cords or any other power service.

5. Keep a multi-purpose fire extinguisher accessible that is filled and ready for operation.

6. Have your air conditioning system inspected by a professional as recommended by the manufacturer.

7. Check for damage to your roof and clean gutters and downspouts to keep debris from accumulating.

8. Check your water heater for leaks and corrosion.

9. Clean and/or replace your furnace filter.

10. Clean the clothes dryer exhaust duct and space under the dryer. Remove all lint, dust and pieces of material or cloth.

11. In your yard, remove all dead trees and keep healthy trees and bushes trimmed and away from utility wires.

12. Safely store oil and gas for lawn equipment and tools in a vented, locked area

13. Repair driveway and walkways that are cracked, broken or uneven to provide a level walking surface.

The following are updates to what is happening all around our great city!  If you have something to share, email me!

Hyde Park, OH: The Hyde Park Neighborhood Council will have a special meeting to discuss a proposed mixed use development on Erie Avenue.  You are invited! 

The meeting will be at 7 p.m. Thursday, Jan. 24, at Knox Presbyterian Church, 3400 Michigan Ave.

Oakley, OH: How do you feel about the giant fork on Madison Rd?  Well, if you think it is in distaste, then you may be happy to hear that a possible resolution to our ‘fork crisis’ may be near

Mariemont, OH: Want another good reason to move to this city?  Check out the latest crime stats!

Norwood, OH: Mayor Mark Mallory has issued a proclamation to recognize January as National Mentoring Month in Cincinnati. He is calling on more Cincinnatians to get involved in the lives of young people by becoming mentors.  You can help out by volunteer with students in Norwood.  Check out the Norwood Service League and ask Michelle how you can help make a difference in the lives of our youth

 Clifton/Corryville, OH: Short Vine is making a comback. The Uptown Consortium has hired Towne Properties to help craft a plan that will breathe new life into the retail and entertainment district on Short Vine Street.  Read about just some of the revitalization that is happening around the University of Cincinnati.

If you haven’t been down to the Columbia Tusculum area in a while, you really should go.  This Cincinnati historic neighborhood is getting a much needed face lift, thanks to nearly $40 million in new investments.  The new investments are going to be of mixed retail, restaurant and office spaces.

If you drive down there now, on the corners of Columbia Parkway and Delta Ave, you will see a large shell of a building known as One Columbia Square - this is slated for completion in June and will be the cornerstone of a new district featuring shops and restaurants along Columbia Parkway.

This is a great thing for this area.  Being that it is Cincinnati’s oldest neighborhood (founded in 178 its about time it saw a resurgence.  This area has charm and character like its neighbors, Hyde Park and Mt. Lookout, so why shouldn’t it be a highly desired area?  Its only 10 min from downtown and close to the river, parks and shopping.  There are new condos going up and also a lot of rehabbing of the older homes.  The MLS shows that there are 67 current active and pending properties out there ranging from 12,900-1.685 million. 

If you’d like to take a look at any of these great properties for sale, please don’t hesitate to call me!

I was recently approached by a homeowner wanting to sell their property. In my routine questioning of my sellers I ask them to list for me the updates they’ve done to their home. They responded with some really great stuff: new roof, new windows, new furnace/ac, glass block windows, garage door, etc… Then they proceeded to list for me the cost of these items and basically told me that they expected these costs to be added onto the purchase price of the home. Its conversations like these that make bells and buzzers go off in my head - ALERT, these sellers don’t understand the difference between improvements and maintenance (general up keep of a home).

Most buyers today expect a roof to be in good condition, expect to have a good working furnace/ac, a working garage door, etc… These are normal things that need to be replaced over time and that keep the value of a home, but they don’t add too much value if they’re new. Buyers expect most of these things to be done, or else they’ll probably start deducting from the purchase price.

An improvement is something like adding a deck and patio doors to the back of your home which already has a great backyard and was just waiting for some updating. Or when you re-do your kitchen and put in the granite and stainless steel appliances and the other homes on the block don’t have as nice of a kitchen, then you can probably get a little more for your home. However, even if you put improvements in your home, you can’t always expect to reap the full return. I recently sold a home in Norwood, which had a GORGEOUS bathroom that she just put in 2 years ago. Did she get her money out of that bathroom, probably not. Did she over improve on the bathroom, yes. Was it worth it to her, yes. Did it sell for a better price than the other homes that were similar to hers, yes.

Basically, you have to be careful about over improving on your property and just because you replaced something in your house that needed to be replaced, doesn’t mean you can tack that maintenance price onto the purchase price of the home.  You’re not improving it, your just maintaining it.

A friend of mine is moving here from LA.  I’m sure some are thinking, why would you move from LA to Cincinnati?  Well, as many of you Cincinnati natives know, this town has a way of sucking you in and drawing you back.  Well, we just recently picked out a home for her in Clifton.  Being that she is coming from LA, she wanted to keep the large city feel in her life, but with the hometown quaintness of Cincinnati.  For many of you who may not be from this area, or think of Clifton as only for UC students, you are definitely wrong!

The particular property she is purchasing has AMAZING views of the city.  Most people think of Mt. Adams or Prospect Hill in Mt. Auburn as the place to go, but there are areas of Clifton tucked in on the hill that are absolutely AMAZING.  You have the charm of older homes and views that would cost you 5x’s as much money in larger cities.

The longer I’m in this business the more and more I am amazed at what Cincinnati Real Estate has to offer!  I recently spoke to one of the new neighbors to this home I just sold and they were recently moved here from NY and they just couldn’t get over how much there is to do in Cincinnati and how reasonable our real estate market is. Our home prices are stable and very reasonable and our city is growing and thriving.  WE have a terrific arts programs, museums, theatre, symphony, ballet, etc!  Check out my previous posts on the street car system coming to our downtown area!

Contact me if you’d like to find out more about our great city and how you can find the home you’ve always dreamed of!