Keepin’ it REAL Estate

Many people scoff at it and think they don’t need it.  “Oh, it will never happen to me”  they think.  But when title issue come up, those that have it are REALLY happy they purchased it.  I’m talking about OWNERS POLICY TITLE INSURANCE.

Title Insurance is something that no one really thought too much about until the big Erpenbeck scandal a few years ago.  Had many of those buyers bought title insurance they would have been better off than they are now.  People think that Erpenbeck is an isolated incidence, but its not.  Just this week I remember why every buyer should spend the extra few dollars at closing and purchase this valuable insurance.

I have a buyer who found the perfect condo for her.  Things were smooth and simple the entire process.  Negotiations were good; Inspections barely came up with anything and we were set to close on Monday (yes this PAST Monday).  Last Thursday/Friday comes and I get a call from the title company saying they we should still be able to close, but an unreleased mortgage has come up and they are trying to clear it up.  No worries.  We as agents sometimes get calls that things have come up on the title but they can get cleared up pretty quickly, no worries.  So I thought that this was one of those times.  Monday came and still no HUD statement.  So I call the title company and they still haven’t been able to fix the problem.  This is when the entire story starts coming out.  The property in question was purchased a few years ago by the now sellers.  The entire condo complex had been rehabbed and was being resold.  The current seller purchased it, but the title company took almost 40 days to record the deed.  In the mean time the developer of the condos took out a blanket loan on the rest of the property and it included the property in question (because the deed had not yet been recorded as a sale).  So fast forward 4 years and the condo is now trying to exchange hands and there is an unpaid mortgage on the property.  This could be easily cleared up if it weren’t for the fact that the Title company was raided by the feds and is now out of business and the developer is evidently in jail for mortgage fraud.  YIKES!  The current seller can show proof that she purchased title insurance on the old HUD, but doesn’t have a copy of the policy.  The agents, the loan officer and the title company have all been working fervently to try to find someone who can get this cleared up.  We think we may have a solution.

As it stands now, we are still waiting to close.  The title insurance company in question is having their lawyers look into it to see if the policy was issued and what can be done.  Luckily my buyer has been able to move into the condo she is trying to purchase.  Now it becomes a waiting game.  Everyone is confident that we can clear it up.  If not, we’ve got to scramble to find her somewhere else to live and the seller is stuck with an unsellable property.

I was watching the news this evening and the main theme seemed to center around fuel and energy prices.  They focused on certain business who have had to add certain “fuel surcharges” to their services in order to stay in business.  Delivery businesses, waste management business, etc…

It got me thinking about my own business.  A lot of what real estate agents do centers around driving.  We drive everywhere.  We basically work out of our cars.  Sure clients can search for homes on the internet, but nothing compares to actually seeing the home in real life.  People want to look at houses, and they usually want to look at a lot of them until they find the perfect one.   This is the nature of the beast.

So, how will the rising gas prices effect my business and the entire home buying process?  Well, I certainly can’t start charging clients everything I take them out, like a taxi driver would.   I don’t think the public would go for that… But I can make sure that beforeI get them in my car that they are pre-approved to actually purchase a home.  Buyers and future buyers, listen up.  Getting pre-qualified before you go shopping is one of the single most important thing you can do.  You’re waisting a lot of your time and an agents time if you aren’t financially qualified.  You may think that you know what you can afford, but its better to know exactly.

Another way I see rising energy/gas prices effecting my business is in the areas where people want to live and also in the types of homes they want to live in.  I feel like areas that have a lot of places to walk to or ride a bike to will start to become more and more popular.  Gone are the days where remote living is popular.  People are starting to see that neighborhoods and community are important and also convenient.  Buyers are also becoming increasingly aware of utility bills and making average utility bills a factor in their home buying decision.  If there are 2 identical homes and one has more energy saving attributes, the home buyer will choose the one that will save them more money.  Hands down.

Rising Energy costs are here and I think they’re here to stay.  It will take us all a while to change some of our habits and patterns.  Ultimately we will get used to it and will have adapted our lifestyles and our businesses accordingly.  Its not the end of the world, but it makes us all think about what we do and where we live differently…

Northside - What a great community!

As they say on their website ” you are looking for an urban setting with a small-town feel, where neighbors know and care about one another, then Northside is the neighborhood for you.”  Northside is one of those strong growing communities that is rapidly making a big name for itself.  With great home prices and a bustling business district, its no wonder people are taking notice and jumping in while the getting is good.

This fantastic little community is full of history and charm.  Whats really neat is that everyone I meet from Northside, loves it and is actively involved in some way in the community.  They say they love it and they’ll never want to move away.  Much of what is happening is due to people who love the charm and character of older homes, coming and buying these gems at reasonable prices, fixing them up and then staying in then.  They are literally transforming the community on house at a time.

There are great plans and developments coming up in all sections of the community.  There is a bustling business district where you can find great food, great bars, great shoes, cloths, tattoos and more! 

I recently listed a couple of Leed Certified homes in Northside.  These are new construction homes are the “brain children” of Northside Community Urban Redevelpment Corporation. They are built with great “green” features which save you money and keep you healthy.  Look for a separate post on these homes.  They’re too good to miss!

This Just IN:

The Hamilton County Board of Commissioners voted on May 28, 2008 to reinstate HIP.

 The Hamilton County Home Improvement Program (HIP) is an initiative of the Hamilton County Commissioners and the Hamilton County Treasurer. The “HIP” loan allows homeowners in Hamilton County communities to borrow money to repair or remodel their homes or rental property at interest rates 3% below the lowest rate a bank would normally offer. Loans may be used for:

Contact Information

Patrick Hanrahan, “HIP” Coordinator
Hamilton County Department of Community Development
138 East Court Street, Room 1002
Cincinnati, OH 45202

Phone: 513.946.8234
Fax: 513.946.8240

Click here for details.

This is very exciting news for all of us who have older homes and want/need to fix them up.  This is a great thing that they have brought back! I’m very excited.  Now maybe I can redo my kitchen after all

Today, I discovered yet another great Google invention/tool that is fantastic.  Lets say you’re shopping for a home on-line and you want to know exactly what the street/area looks like without having to drive out to see it.  Maybe there is an electric tower in the back yard and you don’t know about it, maybe the neighbors house is a dump and you don’t know it until you see it.  In the past you would have to get in your car, spend time, money and gas only to discover the neighborhood wasn’t exactly what you wanted. 

Well, let me introduce you to Google Street View. Its pretty amazing, real 360 degree photos of streets. They just introduced Cincinnati as one of their cities on June 10.  I’ve spent all night looking at my house and all my friends housesl city views etc…  Just go to Google Maps and put in your address. Most of Cincinnati is there (the suburbs aren’t yet).  How did they do it?  Well, they sent a car (prius) with a camera around to drive all the streets and photo the entire view of the streets.  You can visit some of the major US cities without having to leave your couch.  I went to Alaska tonight!  Tons of fun and you probably won’t get any work done tomorrow.

Have fun! 

Here is a lesson to be learned about contracts and what it really means to sign one… (its a legally binding document you know).

I recently got connected with some first time home buyers.  They got pre-qualified and we were off to go shopping.  I choose a bunch of different homes for them to look at within their comfortable price range.  As we went through the first few houses, I pointed out “normal” old house problems and potential big problems when necessary.  House # 3 was a winner for them.  It was a very unique home, needed some cosmetic updating, but nothing MAJOR stuck out to me.  However, I’m not a home inspector as I tell most people.  If you like it and want to pursue it, get an inspection done.   Its also not uncommon for people to find a home that they like the first day out shopping. 

We looked at one more just so that they were sure and then they wanted to stop for the day.  As I dropped them off, they wanted to think about what they saw that day and said they would give me a call.  The next day they called.  “We are ready to move on this one” they told me.  Alright!  However, he was going out of town and couldn’t do anything until Friday (it was Sunday evening).  Okay, but I warned him that it could potentially be gone if they waited.

So Friday came along and I met up with them to sign the paperwork.  We went over the entire contract, almost verbatim.  It took a while, but since they were first time home buyers, I really wanted them to understand what they were signing.  A purchase contract is normally contingent upon 2 things: Inspections and Financing.  In the inspection clause (which I read to them) basically states that we can’t back out of  the contract because of material defects, we must ask for repairs after inspections - we just can’t walk because we didn’t like what we saw, we have to give the seller an opportunity to fix the problems and if they seller will not then the contract becomes null and void.

We signed all of the documents and sent the contract off to the listing agent.  Couple of days later it was ACCEPTED!!  We got a great price for the house and my buyers were pleased.  They then asked if they could take their friends and parents through.  Sure I thought, no problem. Inspections were scheduled for the following week.  I was headed out of town and so I had a fellow agent walk them through the house. Friends went through and everything was okay.  Parents went through and I thought everything was okay until my buyer called me the next morning telling me he wasn’t going to purchase the house??  What happened??  We didn’t even go through inspections!

Basically the parents went through and vetoed the home.  For reasons I’m still not sure of.  He mentioned something about dampness in the basement (NORMAL for a 80 year old house, which I mention to ALL of my clients who are looking at older homes.  Its more abnormal to find a basement that doesn’t get a little wet then one that does) and also something about it looking like the ceiling had had some patch work done from a possible roof leak.  Well, if the roof was fixed and the problem was solved, then there is no problem.  There were no other reasons why, he just kept saying we aren’t buying the house.  So I told him, that if we try and get out of the contract now, you probably won’t get your earnest money back because we have no valid reasons.  We would try, but no seller is going to just let someone out of a purchase contract with out compensation because the buyer has changed their minds!  Worst case would be that they would sue us for breech of contract.  Loosing the money would have been much better compared to a civil suit and my buyer agreed.

So such was the case.  They were not willing to release us without something for their troubles and their loss of market time.  They would let us go, but they would keep the earnest money.  Fair enough.  I’m happy that it ended so “trouble free.”  As for my buyers? Well, I haven’t heard back from them.  Which I’m okay with, I would choose not to continue to work with people who are going to be big liabilities for me in the future…

The point of my story, is if you are buying your first house.  REALLY  make sure you understand what you’re signing and what you’re getting into.  I don’t think my buyers did and I think they got overwhelmed with the thought of buying a home, mom & dad put doubts in their minds and they wanted to bail.  These things happen, but hopefully not again to me.

Seeing that I have a large Norwood following, I thought I’d send this out to see if anyone would like to get involved in our citys relay for life?

Whether it’s a friend, a family member, or the neighbor down the street, we all know someone who has been touched by cancer. Many of us are concerned about this disease and want to do something to make a difference. That’s why I’ve decided to take part in the American Cancer Society Relay For Life® . It’s an event that brings together the whole community and helps raise funds for the fight against this disease. I know you care about cancer, too, and I’d love for you to join me as part of my Relay team.

At the event, we’ll camp out overnight, walk around the track, and meet lots of new people. There is an incredible tribute to cancer survivors and caregivers that starts off the night and a moving ceremony honoring those who have fought the disease. I can truly say Relay is unlike anything else you’ll ever do. It’s a night full of fun, hope, and remembrance.

You can get more information about Relay For Life and the American Cancer Society by clicking the link below. Won’t you join me in this fight?  As a member of the Norwood Young Professionals, we have a team we have set up and we’d love to have you on our team!  Or if you don’t want to walk, come out and support us while we do all the work!

Click here to visit my personal page.
If the text above does not appear as a clickable link, you can visit the web address:
http://main.acsevents.org/site/TR/RelayForLife/RelayForLifeOhioDivision?px=7214757&pg=personal&fr_id=7373&et=LZ7hB1a5ZtVCnbpPL6dHww..&s_tafId=112185
Click here to view the team page for Norwood Young Professionals
If the text above does not appear as a clickable link, you can visit the web address:
http://main.acsevents.org/site/TR/RelayForLife/RelayForLifeOhioDivision?team_id=297729&pg=team&fr_id=7373&et=FVKzV0rv4C8d0jZgPjl6TQ..&s_tafId=112185
 

I have recently had a few battles with earnest money.  Never a good thing when people are fighting over money right??

So what is Earnest Money? and  why do people give it? 

Earnest money is like a good faith deposit the buyers of a home put down on a house they’d like to purchase.  Its a way of ensuring the sellers that their intentions are good and that if everything goes well in the transaction and we make it to closing, the buyer gets their money back.  Just like if you were going to rent an apartment and you put a deposit down.  If you keep the apartment in good working order and return it to the owner in good condition, your money is given back to you…. Similar concept with earnest money.  However in a real estate transaction, if the contract becomes null & void both parties have to agree on who gets the earnest deposit. 

Here’s my story…. All names have been changed to protect the innocent…

I have a buyer “Candace”.  We’ve been shopping around for homes the past few weeks and she finally found a house which she loved and loved the location.  It is a great older home, which needed some work, but it was at a good price in a location where a lot of redevelopment is happening.  We put an offer in and got it accepted.  She put down $500 earnest money.  So, according to the contract we had 7 days to do the inspections.  Her parents being from out of town wanted to be present, so we could only do the inspections on day 6 of the 7 days.  The inspections happened and the inspector noted that there had been some structural work done on the house and he suggested that we take a look at the structural report and maybe have it re-evaluated by a professional.  I promptly called the listing agent and asked for the report (still day 6).  I didn’t receive the report until 4:30pm on day 7 (my inspection period was ending at midnight, YIKES!).  It was definitely too late for me to have someone come out and re-evaluate the property.  So I wrote up our inspection addendum and asked for a few items including an extra 2 days to have the house structurally re-evaluated and if there are any problems have the sellers fix it.  Something completely normal in the course of a real estate transaction.  Much to my surprise, the sellers came back to us saying “NO” to more time!  What??  Why wouldn’t you give more time?  Many times in a real estate transaction inspections beget more inspections.  Its very normal.  We were acting on what the inspector recommended.  Their reasoning, was that we acted too late and we should have asked for the report sooner and therefore we can’t have more time.  Even had we asked for the report sooner, because it was mentioned on the disclosures, my buyer still would have had the normal inspector out to see if she should spend the extra $800 on a re-evaluation of the foundation or if it looked like it was okay to the whole house inspector.

The sellers reaction made me and my buyer very confused and made us start to think that they (the sellers) were hiding something.  The sellers then replied that they thought we had ulterior motives.  What ulterior motives does a buyer have when wanting to inspect a home?  We wanted to purchase it and nothing more.  So this ensued a big fight between buyer and seller.  So, we gave the sellers the ultimatum sign a release of contract or let us do more inspections.  After sleeping on it, they came to the decision that if we used the original structural engineer then they would let us do it.  At first my buyer verbally agreed, but then 30min later she called me back and said, “no!  If I’m paying $800 more dollars for an inspection then I want to use who I choose.”  The sellers wouldn’t have it, so they said no.  I then told them to sign the release of contract (which stated that we get our earnest deposit back).  I got the contract back, but it only released 1/2 of the funds.  They want to keep the other 1/2.  For what??  We couldn’t come to a settlement after inspections and in a “normal” transaction, buyer 99.99999999% of the time receives their earnest deposit back. 

So where are we now?  No one is budging.  I’m not sure, but I dont’ think the sellers can close on their house (if a new buyer comes along) without the release signed by both parties.  Their only hurting themselves.  My buyer is determined to wait it out.  The sellers have already moved and now have 2 house payments they’ve got to make - all for $250.00.  Sometimes being stubborn doesn’t pay.