How Large Multi-Family Buildings Should Be Marketed
Large multi-family buildings need a different marketing strategy than a typical home for sale would get. Owners of these properties often times go with who they know and end up listing their property with a real estate agent who specializes in residential real estate. That real estate agent may be an expert in their field of residential real estate but large multi-family buildings (5 or more units) fall into the commercial space and require a different set of skills. The owner of such large multi-family buildings who wants to sell their property would be better served by a real estate agent who understands the buying and selling of large multi-family buildings. This article explores the ways a large multi-family building should be marketed when putting it up for sale.
Get The Price Right
When looking for comps for large multi-family buildings sometimes looking for similar properties in the same neighborhood may not be feasible since there may not be any recent sales. Instead owners of large multi-family buildings need to be looking at what is the going price per unit or price per door for the building and use that to come to the asking price. The price per door that is set as the final price does need to take into account any deferred maintenance, the need for updates and more. Afterall one should not price their building at a premium and expect good offers when there is...
Tips For Saving Energy In and Around The House
With energy prices increasing along with the cost of everything else, saving energy in the home should be a priority for homeowners. During the extreme periods of hot and cold weather homeowners can save quite a bit of money but making energy efficient improvements in their home. As with anything the homeowner needs to weigh the cost of making the improvement versus the potential savings. Spending five dollars to save one dollar on a one-time basis is a bad investment. On the other hand spending five dollars to save one dollar a month for the foreseeable future would be a good investment. This article provides some tips on how to save energy in and around a home.
Adjust Your Thermostat
Are you used to cooler temperatures in the summer and warmer temps in the winter? Adjust the thermostat one degree above or below your normal setting is a great way to save on the heating/cooling bill. It will take a little getting used to body comfort wise but once changed and forgotten the money savings can add up over time. Couple that with using a programmable or smart thermostat and additional savings can be had. Some smart thermostats know when no one is home and can automatically adjust the temperature up or down to save money.
Mind Your Windows
When the weather outside is mild opening one’s windows is a great way to let the fresh air into the home. Inside air can get stagnant with cooking,...
May 2022 Greater Cincinnati Luxury Real Estate Market Report
Luxury home sales increased from last month even with rising mortgage rates. This can be explained with the fact that most homes that close in a particular month are usually contracted one to two months prior. In those prior months mortgage rates were lower as compared to May 2022. Homes going into contract in May will show up in June/July results. Prices for luxury homes in the Greater Cincinnati have been holding steady for the 2022 time frame.
Additional Articles To Read
- May Housing Bubble Update - See which markets had a run in prices and sales during the month of May 2022.
- Home Prices Set A Record - This article takes a look at home pricing and how it relates to CPI (Consumer Price Index which is a measure of inflation).
Top 10 Highest Commercial Properties For Sale in the Greater Cincinnati Area
The Greater Cincinnati area is a diverse market relatively smaller in size compared other large cities. Often overlooked by large investors there are plenty of oppotunities for investors looking for commercial real estate to buy. Check out some of the most expensive commercial property listings available on the Multiple Listing System (MLS). The commercial listings cover all the different categories such as retail, warehouse, office, industrial and more. If you want to learn more about the cash flow possibilities of any particular property be sure to get in contact today with Paul Sian who is local Cincinnati and Northern Kentucky Real Estate agent. (This list focuses on commercial properties in one location as opposed to a portfolio of properties spread around the city that are listed for sale as part of a package deal.)
Mortgage Payment and Interest Rates
The amount of a monthly mortgage payment will be directly impacted by the interest rate that is charged for the mortgage. Home buyers are usually looking at the total monthly mortgage payment to determine what their budget is for buying a home. Higher interest rates on mortgages means looking for a home with a sales price that can get to the desired monthly payment a buyer needs. This article looks at how the interest rate will impact the monthly mortgage payment.
Fixed Rate Mortgage
A fixed rate mortgage means that the interest rate for the mortgage will remain unchanged for the length of the loan. So if the mortgage is a 30 year fixed mortgage with a 5% interest rate that 5% will be the same the entire 30 years the homeowner has the mortgage for. The mortgage term can be also be 15 or 10 year terms depending on what the homeowner opted for when buying or refinancing the house. With the fixed interest the principal and interest payments will remain the same for the length of the loan but the actual mortgage payment can still be subject to change if the payment includes escrowed insurance and tax payments. Insurance rates can go up with the price of inflation and taxes as well can increase or decrease based on the value of the home. In most cases the taxes increase as the home price increases. What that means is that the portion of the monthly payment that...
April 2022 Greater Cincinnati Luxury Real Estate Market Report
Mortgage interest rates are up, for non-jumbo mortgages rates in the mid 5 percent are what is being quoted today. With rates moving up at a steady pace some buyers are turning to Adjustable Rate Mortgages (ARM) as ARMs can start off with a lower overall interest rate. Month to month the Greater Cincinnati luxury real estate market has seen a slight increase in price and a decrease in average days on market from March 2022. Some buyers may be wanting to move their cash into real estate as a hedge against the quite high inflation numbers. As interest rates continue to climb expect the real estate market to face more pressures due to buyers stepping away due to costs going up.
Common Real Estate Investment Terms (and what they mean)
With any type of investment it is important to understand the terminology used so that the investor can appreciate everything there is to know about the investment. One should not be investing in anything without that knowledge. Real estate investment involves large sums of money that can also be highly leveraged which means plenty of risk. That risk can be reduced with a positive earning property. This article provides some key investment terms that real estate investors should know about.
Any real estate investment without positive cash flow is one an investor should walk away from. Unlike actively traded stocks real estate cannot be bought or sold with the click of a few buttons. Instead the act of buying real estate takes time to not only find the right cash flowing property but then to get all the post contract acceptance aspects in line prior to closing. Therefore if an investor makes a wrong decision one cannot simply sell their investment real estate without taking a loss due to the transaction costs involved.
The cash flow from real estate investment needs to not only be positive but large enough that the cash flow can be banked so that a reserve fund can be setup. If one already has a reserve fund setup to cover major expenses (like HVAC, roof, plumbing and more) that is great, but the cash flow is still required otherwise once a major expense does pop up that real estate investment will become a net negative investment. Real estate investors...
Different Statuses For Homes On The Market And What They Mean
When a home is on the Multiple Listing Service (MLS) listed for sale there are different statuses that are reported on the home. Those statuses help home buyers to know whether a home has accepted an offer, been sold, been removed from the market and even if the home has come back to the market after accepting an offer. Most MLS systems have similar statuses for real estate listed for sale in their market. This article looks at the different statuses and what each means.
Timing Of Status Changes
Generally any time the status of a home changes the change on the MLS must be made by some human input. A real estate agent who is listing the property is responsible for changing the status. Many MLS organizations require that the agents make their changes within a certain amount of time on the MLS after the status is updated in the real world. That means if an offer has been accepted by the seller the listing agent should be making that change in status sooner rather than later. By making the change sooner buyers can take that home off their list and look for other homes and save the time of buyers and sellers alike. Often, after accepting an offer home sellers want to stop the showings from happening in order to minimize the disruption it can cause.
One of the most common statuses on a home listed for sale is the active status. The active status means the home is on the market and still taking offers. As...
How Will Higher Interest Rates Impact Real Estate?
With inflation reaching forty-year highs the Federal Reserve (Fed) has started increasing the federal funds rate as part of an attempt to control inflation. As interest rates rise that does affect the cost of things like mortgages (both residential and commercial), credit card rates, auto loan rates and more. The thought process is that higher rates will soak up some of the excess money that is out there which is causing inflation to go up. This article looks at how buyers of commercial and residential real estate will be impacted by higher interest rates.
When it comes to the individual homeowner with a fixed 30-year mortgage they will not see any difference in the payment of the principal and interest portion of the payment since their interest rate is fixed for the entire term of the loan. The mortgage payment can change with a 30 year fixed interest rate mortgage through taxes and/or insurance going up. If the homeowner decides to refinance their mortgage they could see an increase in the amount of their mortgage payment if the new interest rate is higher than the old interest rate or they also take some cash out the home’s equity thus increasing the loan amount. In the US adjustable-rate mortgages (ARM) for homes are not very common as compared to the past where more home buyers had the option of buying a home with an ARM.
Mortgage rates have bumped up quite a bit and the average mortgage rate as of writing this update is 5%. Mortgage applications and refinance applications have slowed down as a result. Inventory in the luxury market remains unchanged from last month but the median price is down a bit along with the days on market. As interest rates remain higher than a few months ago and even increase further compared to today's rate more buyers will pause their goal of buying a home or start to shop for homes priced at a lower point.
Tips For Understanding The Listing Contract When Putting Your Home Up For Sale
When working with a real estate agent for listing a home for sale (or even commercial real estate) the agent will present the owner with a listing agreement. The listing contract provides the terms and conditions the real estate agent will use to list the home for sale on the local MLS (Multiple Listing Service) where all homes are listed by agents. Understanding the listing contract is important for homeowners since the contract will contain the rights each party has in the transaction. This article looks at some of the important areas homeowners need to be paying attention to in the listing contract.
Basic Terms of the Listing Contract
Some of the important basic terms of the contract relate to things like making sure the correct address shown, understanding how long is the listing agreement for, and is the agreed upon commission rate correctly captured in the contract? Typos happen and while not a huge deal if the house is listed as 1234 Main Street when it should be 1233 Main Street, a commission rate of 8 percent when 5 percent was agreed upon could become a costly error if the contract is ever enforced in court. Just as with any contract everyone signing the contract should be reading the language and making sure they understand what they are signing. If there are questions, ask your real estate agent or get an attorney involved if there is some language in the contract...
What Is Seller Financing?
When buying real estate the typical methods for paying are providing cash or getting a mortgage. One other method which is not very common is buying the property through seller provided financing. With seller provided financing the owner of the property is basically agreeing to sell the property to the buyer and take monthly payments in exchange. This article looks at seller provided financing to help buyers understand why it may or may not work.
Seller Financing Terms
With seller financing pretty much everything is negotiable. The buyer can negotiate how long they want the loan to be, how much down payment they should pay, what interest rate they will be paying and more. Of course, depending whether it is a buyer’s or seller’s market the negotiating position of the buyer to get the terms that want may or may not be the greatest. The seller is also the one offering the financing so regardless of the type of market they have more ability to control what they will or will not accept.
A traditional mortgage can have minimum down payments anywhere from 0-30% and terms are typically 7 to 30 years depending on type of real estate involved (commercial vs. residential). When using seller financing it is highly recommended that the buyer work with a real estate attorney to make sure their interests are being properly protected. Buyer’s should insist that the real estate title be transferred over to their name and the seller have their financing document be registered on the property as a mortgage lien to protect both sides.
Mortgage rates have trended downwards after the recent activity in Europe and the recent upward trend. Slightly more homes were sold in February and as the weather warms real estate sales in general should pickup. Real estate still faces a lot of headwinds from high inflation rates, the Federal Reserve intent on raising rates, and a declining stock market.
Is 4% The Rate That Breaks Reat Estate's Back? - In the past it took much higher rates to cause a drop in demand from buyers. This time around 4% may be that rate that slows things down.
The Importance of Timelines When Buying or Selling A Home
Timelines are critical when it comes to buying any type of real estate. The timelines set when certain things must happen and if missed the buyer or the seller can lose out on some important rights that they have based on those timelines. This article looks at what timelines are common when buying or selling a home and the consequences if those timelines are missed.
Common Timelines In A Real Estate Contract
In most real estate contracts, whether for commercial or residential transactions there will be due dates for accepting the offer, inspections, responding to repair requests (including request for price reduction based on repair issues), financing (if used), depositing earnest money, and the closing date. All the dates listed out in the contract are deadlines that if missed can cause a breach of contract claim. Both the buyer and the seller each have their own due dates they need to stick to in order to have a smooth transaction.
While an appraisal will generally be required when financing is used (there are some exceptions) usually there is no timeline required for the appraisal. An appraisal is usually ordered by the buyer’s lender after the home inspection is done. Since buyers are paying for the appraisal the lender will wait until the buyer gives them the green light to order the appraisal in order to help the buyer save some money if the deal gets cancelled due inspection issues. Appraisers are an independent part of the real estate process and their part only starts when the lender...
Tips For Buying Commercial Real Estate
When it comes to buying commercial real estate, the approach is a bit different compared to buying a home. Residential homes have thirty-year fixed mortgage rates as well as lower interest rates compared to commercial mortgages. Commercial real estate has shorter overall terms, higher interest rates and the lender will look pretty closely at the commercial property to see if it can support the commercial mortgage loan. This article looks at what the new commercial real estate investor should be considering before they start on their adventure.
What Is Your Reason For Buying Commercial Real Estate?
For those wanting to buy commercial real estate as an investment the lender considerations will be somewhat different as compared to someone wanting to buy to have their business in the commercial space. When buying as an investment, the commercial mortgage lenders are usually looking for at least 20% down and will want to see that the current businesses occupying the property are producing enough income to cover the commercial mortgage loan payments.
For those wanting to buy commercial real estate to house their own business there are some more options available. In this situation the business owner can buy a building just for themselves and need not worry if there are tenants in place. While having tenants in place who rent some of the building is better for the business owner since they have someone else helping to pay the mortgage. Business owners also have more lending options to buy commercial real estate for business purposes such as SBA loans, commercial...
Fewer luxury homes sold in January 2022 compared to December 2022. Overall inventory of luxury homes available for sale also saw a decline in January. Median price stayed about the same and as Federal Reserve actions to increase interest rates take effect the real estate market should see a further slowdown as well.
The Top 10 Highest Priced Homes For Sale Today In The Greater Cincinnati Area
Cincinnati is the third largest city in Ohio and the Greater Cincinnati Metropolitan area covering Ohio, Kentucky and Indiana is the largest metropolitan area in Ohio and the 27th largest metropolitan in the United States. The Greater Cincinnati area has a unique variety of architecture and the homes offered in Cincinnati are no different in their unique style and features. You can find 100+ year old one of a kind homes in different neighborhoods in Greater Cincinnati as well as brand new homes with modern features.
The Greater Cincinnati is no stranger to luxury homes and has many luxury apartments, condominiums, and homes to choose from. The neighborhoods these homes are found in are in and around the Greater Cincinnati area and represent the best the city has to offer. These homes offer some of the latest and greatest in luxury as well as technology and are found in the following great neighborhoods:
What began as a farming community in 1904 the Village of Indian Hill later was reshaped into more of an area for large estates. The homes in Indian Hill represent some of the best of what Cincinnati has to offer. In 2002 the Robb Report rated Indian Hill, OH as one of the best places to raise a family. Of the top ten priciest homes in the Greater Cincinnati area Indian Hill has 7 homes on the list.
When Is The Best Time For Listing A Home For Sale?
In every real estate market there are particular times of the year during which the most buying and selling activity takes place. During the peak selling season the most home buyers are out and about looking for homes to buy. Sellers can take advantage of this peak selling time by making sure their homes are ready to go and get listed for sale with the best possible marketing. This article explores when are ideal times to list a home for sale and provides some tips to get the home in great selling shape.
Peak Selling Time
As every market is different it is helpful to consult with a local real estate expert to determine when the peak selling time is for your market. In Cincinnati the peak time when the most homes are sold is the month of June. By sold that means the house purchase transaction closed and the new owner took ownership. Generally, it takes around 30 days to get a home sold from when an offer is first accepted to the date of closing. So in order to be part of that group whose home is sold in June the home must be on the market at least 30-60 days prior to that.
Once an offer on a home is accepted that only begins the process of actually buying a home. Home buyers need to perform inspections, get the home appraised, work on applying for the mortgage and more. Through this process the home buyer needs to rely on their team which usually consists of a real estate agent, home inspector, mortgage lender, appraiser, and sometimes contractors. As...
How Inflation Will Effect Real Estate
Inflation numbers have been steadily increasing month over month in 2021 which ends up making things more expensive for everyone. Those increased costs do find their way into real estate as well. The causes of inflation include supply chains that are clogged up, extra money floating around chasing fewer goods, cost of supplies going up and more. This article looks at how inflation will impact real estate homeowners, buyers, sellers and investors.
What Is Inflation?
Wikipedia defines inflation as “In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.” Goods and services that relate to housing include lumber, paint, windows, carpet, the labor to install/maintain all of those items and more. The price of a new home will cost more to build as the costs for the parts of the home and the labor to put it together increase. Existing home prices can also increase with inflation because of cost to maintain them, update them or the cost to replace them is up as well.
While the official inflation rate for 2021 was 7%, not everything goes up by the same amount. That 7% number is based on different items that have different weighting in the inflation index. That means certain things are counted less and certain things are counter more towards the average inflation rate even though they may be individually...
The median price of luxury homes in Greater Cincinnati remained unchanged from November 2021. Fewer luxury homes were sold in December 2021. December usually sees a drop off in home sales in general due to the holidays. Fewer people are out and about looking for homes and are instead travelling for vacations, visiting family or preparing for guests. Fewer homes are available for sale now but that number should increase as temperatures warm up later on.
Housing Bubble America - Prices for homes are at all time highs considering the last peak as this article shows.