Do You Need A Permit For That Home Improvement?

Whether one is expanding a deck, putting on a new deck, adding a she-shed, remodeling a kitchen, adding a bathroom or something else it pays to check with the local zoning and building department to make sure whether a permit is needed.  Every location will vary in what does and what does not require a permit.  Certainly the work can be done without a permit and there are contractors out there who will do the work permit or no permit.  The risks though from having no permit for a home improvement job include fines, being forced to undo the work, buyers walking away from a purchase contract, insurance denying a claim and more.  Be sure to understand local permit rules in order to stay above board with your home with the tips in this article.

Is a Permit Needed?

Different cities and states have different requirements, so it is always helpful to call first and make sure whether a permit is needed or not.  Just because a permit was not needed in the last place a homeowner resided in does not mean a different city won’t require a permit for the same work.  While there probably will be an expense associated with getting a permit, failing to get a permit will cost much more, especially if the homeowner is required to undo the work or the contractor decides to take shortcuts that result in unsafe work.  Local building/zoning departments have staff to guide homeowners on the process of applying for a permit if one is needed.  

Benefits of Doing Permitted Work

During the permit process the work is usually inspected to make sure it is up to code.  Things like HVAC, electrical and plumbing are...

Common Seller Mistakes That Will Result In An Unsold Home

With the higher mortgage rates have come the initial steps of a shift in the real estate market .  Whereas sellers found selling homes to be a rather easy process with multiple buyer offers in the recent past, that has changed.  Buyers are being pickier with homes and some buyers have decided to wait until home prices or mortgage rates come down.  Sellers need to be on top of their game when selling a home to make sure they sell quickly.  Some of the mistakes noted below are things that can be avoided when listing a home for sale.

Over Pricing

Pricing a home is both a factor of recent home sales and the current mortgage rates.  Home sellers need to understand that higher rates mean buyers need to shop in lower price ranges than prior.  When rates were low a buyer could afford a more expensive home since the monthly payments were also lower.  As mortgage rates have moved up so have the monthly mortgage payment.  A $400,000 dollar house purchased at a 3% mortgage rates results in a $1517.77 a month mortgage payment (assuming 10% down payment and not including taxes or insurance).  At 6.5% that same mortgage payment for the $400,000 house is $2275.44.  That represents an increase of $757.67 to the monthly mortgage payment!

A buyer who could afford the $400,000 at 3% mortgage interest rate now can find themselves priced out of the same house at a 6.5% mortgage rate.  If there are no buyers of a home at the 6.5% interest rate then that means the home is overpriced and in order to get it sold the seller will need to cut the price.  ...

Days on market has been coming down but the median selling price is also down.  Sales have increased in what should be a typically more active spring home selling season.

The data you see below is from the Cincinnati Multiple Listing Service (MLS).  Average days on market refers to how long on average a property stays on the market before accepting an offer.  The properties sold represents the number of multifamily properties that have been sold during the month being reported on.  If there is other data you would like to see please feel free to make a request in the comments below.

Negotiating Post Inspection Repairs

After an offer has been accepted by the seller the buyer is usually tasked with getting an inspection performed on the home during the agreed to time frame.  Having an inspection performed is an important thing to have done as it provides to the buyer a detailed report of the current condition of the home.  If there are major issues with the home, then repairs might in order or the buyer can opt to move on and find another home.  As based on the current condition the price offered may not be worth it.  Buyers may still like the home but, may want repairs done in order to make sure they get a quality home upon closing.   This article explores how home buyers and sellers can negotiate repairs based on a home inspection report.

Review The Home Inspection Report

Once provided the home buyer should review the home inspection report and ask questions of their real estate agent and home inspector to make sure they fully understand any potential condition issues noted.  Home inspectors are generalists and while they can identify issues with particular areas of the home they will usually recommend further inspection be done by a licensed professional (where licensing is a requirement) specializing in the area of concern.  Sellers sometimes may call into question certain repair requests based on their knowledge of the home.  Having a definitive opinion from a professional server contractor can help settle any debate between the buyer and the seller.

Buyer Agrees to Take Home As-Is

If the issues are not major or the issues are something the buyer can deal with on their own (see below) then the buyer can...

The data you see below is from the Cincinnati Multiple Listing Service (MLS).  Average days on market refers to how long on average a property stays on the market before accepting an offer.  The properties sold represents the number of multifamily properties that have been sold during the month being reported on.  If there is other data you would like to see please feel free to make a request in the comments below.

Median price has gone up from February 2023 and the average days on market has also reduced which means the luxury real estate market is showing signs of life.  More homes have been sold and the real estate listings have also increased.

Housing Starts and Permits Drop in March - There were some revisions to the February numbers but higher rates are causing things to slow down in the new construction home market.

How Do Construction Loans Work And When Are They Best to Use

Are you starting to think about buying a home? Have you looked at properties on the market, but nothing jumped out at you?

Maybe you have specific things you want in a home you can't find. If this sounds like you, custom building a home may be the route you want to take.

Building your own home will allow you to make your best choices from top to bottom.

But how do you go about financing a new home-building project? We will explore everything you should know about getting a loan for construction. Construction loans have a bit more work to them than traditional financing.

Let's examine what you need to know about construction loan financing.

What is a Construction Loan?

A construction loan is designed to cover the cost of building a new home. With a construction loan, a borrower will receive a lump sum of money that they can use to pay for the costs of building their new home. Construction loans are short-term and typically have a duration of one year or less.

A construction loan can be obtained through a bank or other financial institution. To qualify for a loan, the borrower must meet certain criteria, such as good credit and a reliable income.

The loan amount is typically based on the estimated cost of the home-building project.

Once the loan is approved, the money is typically disbursed to the borrower in stages. These stages are called “draws”...

What to Know About Adding Solar Panels to Your Home

Are you considering adding solar panels to your home?

With solar panels on your roof, you will save on energy costs and reduce your carbon footprint, but can they increase the value of your home?

The question of does solar panels increase home value is something you’ll want to ask before investing in this home improvement. We will look at what factors affect the value when you have solar panels installed at your home.

Do Solar Panels Increase Home Value?

Many homeowners ask themselves if they should install solar panels on their homes. It could make sense if you plan on staying in the home for a while.

With solar panels fitted to your home, you can expect to make long-term savings on your electricity bills, boosting the value of your home at the same time.

Estimates suggest you could realize an increase of $20 for every dollar you make in savings thanks to your solar panels. So if your solar panels save you $1,000 a year, your home should be worth $20,000 more on average.

Solar power is more valued by buyers as well. A report from Zillow found 67% of buyers valued energy efficiency as extremely important when searching for homes. The Department of Energy also found buyers were willing to pay $15,000 more for a home using solar power.

These findings show that the drive toward...

Storage Unit Rental Guide

Storage units are a great way to store household goods between moves, when you don’t have enough space in your home or businesses that need storage for items that their place of business cannot handle.  Storage units come in different sizes and as well some storage companies offer climate-controlled storage units that may be better depending on what needs to be stored.  Knowing what storage unit options are available and understanding the requirements of the storage unit itself is important.  This guide will help one to get a proper understanding of the different types of storage units available, the costs of such storage units and more.

Why Might You Want a Storage Unit?

Whether you live in a place that does not have enough room for storage of you moved for a job and now have to temporarily downsize your house renting a storage unit to store household goods until settled in a place that can hold everything may be the way to go.  If you happen to be buying a new home and had to sell your home prior to being able to close on the new home then renting a storage space might be needed in order to store a majority of your belongings until you close on the new house.

Businesses who have seasonal tools or goods that need to be stored off site can also make use of storage units.  By keeping items out of the current location space can be utilized for existing business needs.  Businesses may be able to deduct any monthly fees too paid for their storage unit and any extra insurance...

The data you see below is from the Cincinnati Multiple Listing Service (MLS).  Average days on market refers to how long on average a property stays on the market before accepting an offer.  The properties sold represents the number of multifamily properties that have been sold during the month being reported on.  If there is other data you would like to see please feel free to share in the comments below.

While average days on the market ticked up for luxury homes in the Greater Cincinnati luxury home market the median selling price also moved up.  Inventory increase a bit and the amount of homes sold also increased.  Mortgages for luxury homes are priced differently compared to conventional mortgage so the rate will vary compared to the conventional rate.

Mortgage Applications Plunge - Applications by home buyers for mortgages dropped to a 28 year low indicating that many buyers have put their home buying goals on hold in light of high rates and high prices.

How Do Contingent and Pending Statuses Differ in Real Estate?

While looking for your next home online is easier than ever, some things can be confusing. Though a listing marked as “active” is fairly self-explanatory, other terms can be less precise.

The difference between pending and contingent in listings might not be that apparent. If you find a home in the listings, but it is either contingent or pending, what does that mean, and do you still have a chance to buy it?

Contingent vs. Pending

The main difference between pending and contingent is that with a pending listing, the terms and the contract have been completed. But with a contingent listing, some of the stages in the buying process still have to be met.  Not all Multiple Listing Systems (MLS) use both pending and contingent.  The Northern Kentucky MLS and Greater Cincinnati MLS do not use the Contingent status but do use Pending.

Let's look at these in more detail:

Pending Listings

Property under contract with a buyer will be listed as pending. Showing another buyer got there ahead of you to sign a contract with the seller.

Usually, the pending status means the contract terms have been completed, and the sale is pending. So, real estate agents will make ...

Should You Put Your Home In An LLC?

Homeowners are always looking for a way to protect themselves and their assets.  Homeowners insurance is a great way to protect a home from natural disasters and also can provide protection from someone getting hurt on the property.  There are additional insurance policies homeowners can consider as well to expand that coverage.  Some homeowners may think that by moving their home into a Limited Liability Company (LLC) they can get much better protection from lawsuits.  While that could be true there are risks involved as this article explores.

What Kinds of Protections Does an LLC Provide?

The types of protections provided by an LLC may vary state by state but for the most part the LLC is treated as a separate entity from the owner of the LLC.  If the owner is sued for their actions as a person the assets of the LLC should be shielded from a lawsuit if the owner was not acting on behalf of the LLC.  For instance an LLC owner is driving their vehicle to do a personal errand and run a red light causing an accident.  The person injured by the accident can sue the owner and the courts can look to all assets owned by the owner to help pay for the injuries.  If the owner owns assets in an LLC those assets would be considered separate from the owner and not subject to the liability of the owner.

By moving title to a home into an LLC the homeowner then is attempting to protect their home from any judgment claims.  For instance if the homeowner did not have enough insurance coverage or other assets and were found liable in the accident described above their home could be used to help...

Walking Away From A Home Purchase Contract

After an offer has been accepted on a home a buyer has some options for walking away from the contract and possibly getting their earnest money back.  Usually those times to walk away and get the earnest money back apply during the contingency periods written into the contract.  A buyer can walk away though at any time from the contract up until the actual signing of all documents at closing.  Walking away from a purchase contract though could result in the buyers losing their earnest money or worse being sued if there were no contract contingency clauses upon which they based their decision to cancel the contract.  This article explores some of the different ways buyers can walk away from a contract to purchase a home and the consequences for doing so.

Inspection Contingency

Most contracts to purchase a home should contain a contingency section which allows a buyer to have the home inspected for condition.  A home with a bad condition may mean that the current offer price does not make sense.  The buyer may also decide that based on the condition they no longer want to purchase the home.  Whether the buyer can walk away from the home purchase contract based on a condition issue depends on the terms of the contract and the local laws that govern the real estate contract.

In the Greater Cincinnati Ohio area in the past the standard MLS (Multiple Listing Service) contracts that are provided for real estate agent use had flexible language that would allow a buyer to back out for almost any condition issue.  The recent changes (2022) to...

Different Land Loans Explained

If you’ve always dreamt of building your own home, the cost could be holding you back. But you can get loans for land to buy the plot to build your new construction.

Before looking for land loans, you should know a few things. We will look at the different types of land loans available to purchase land when you want to build your own home.

How Does a Land Loan Work?

A land loan is simply a loan for land, and the type of loan you choose will depend on the plot and how you intend to use it. Primarily, these loans are used when the buyer does not intend to start building a home immediately.

The loan allows them to hold onto the land until everything is ready to begin construction. If you are ready to begin constructing your home immediately, it is better to choose a construction loan.

A construction loan will let you finance the purchase of the lot and the cost of building the home. So if you have everything ready to go, including your blueprints and specifications, a loan for construction will be best.

Many folks have planning to do, so in that situation, a land loan will work best. A land loan can also be used for buying commercial real estate for a business too.

Let's look at the different land loans that are available:

Raw Land Loans

If the plot of land is entirely undeveloped without utilities or a road, a raw land loan...

The data you see below is from the Cincinnati Multiple Listing Service (MLS).  Average days on market refers to how long on average a property stays on the market before accepting an offer.  The properties sold represents the number of multifamily properties that have been sold during the month being reported on.  If there is other data you would like to see please feel free to share in the comments below.

There was a slight increase in sale of multi-family properties in Cincinnati.  Interest rates still continue to be a drag on sales, but with good cash flow buyers are ready to make offers.

January was a slower month for home sales.  The total luxury homes sold in January was 33 as compared to 61 selling in December 2022.  Listings remained flat but as the weather warms up in the Greater Cincinnati area and as mortgage rates stay off of recent highs both buyers and sellers should be back to transact.

Housing Bubble 2.0 Update - Homes in many of the large markets are experiencing a decline compared to the recent highs.  This may start to impact real estate in other markets down the line.

Important Things To Maintain In A House

Homeownership involves much more than living in the house and slapping on some paint here and there periodically.    Homeowners need to be actively maintaining and updating the house in order to have the home retain value.  Certain areas are overlooked when it comes to maintenance and this article provides tips on where homeowners should be focusing on routine maintenance.  Skipping this maintenance can mean much larger bills down the line when something does fail in the home.

Garage Doors

The garage door themselves and the garage door opener need to be properly maintained in order to get the best possible life span out of it.  Over time the metal parts can wear down if not properly lubricated.  Metal moving parts of the garage doors will need replacement when they do wear down.  The garage door opener itself has moving parts and electronics to help it safely operate.  If the sensors that tell the garage to reverse when something crosses its path fail to work it can cause harm to people, animals and even damage a car that is in the path of the garage door.  By having the garage door and opener regularly tuned up/maintained on a regular basis the homeowner can ensure it operates safely and effectively for a long time. 

HVAC System

The Heating, Ventilation and Air Conditioning system (HVAC) are basically the lungs of the home and keep the home’s air cool in the summer, warm in the winter as...