Cincinnati and Northern Kentucky Real Estate BlogRecently posted or modified blog postshttps://www.cincinkyrealestate.com/blog/Copyright CinciNKYRealEstate.com2024-03-07T08:37:49-07:00tag:cincinkyrealestate.com,2012-09-20:112986 Reasons Why Your Home Did Not Sell<img src="https://assets.site-static.com/userfiles/584/image/Common_Reasons.jpg" width="535" height="635" alt="6 Reasons Why Your Home Did Not Sell" style="display: block; margin-left: auto; margin-right: auto;" />
6 Reasons Why Your Home Did Not Sell
There are a number of common reasons that a home listed for sale ended up not getting any offers and therefore not selling. For the home seller who truly wants to sell their home understanding and addressing these common reasons can help put them on the path to selling the home the next time it is listed for sale. Qualified real estate agents will understand these reasons and be able to guide a home seller to avoid them, but the home seller should also understand the causes of a failed sale as well.
1. PRICING
First and foremost, pricing is on the top of the list as a common reason why a home did not sell. Homebuyers are looking to get the best value for their money when buying a home and go in fully informed with regards to home prices and features. Regardless of how many upgrades or add-on features a home has if the price is not in line with other homes in the neighborhood it will not sell.
Many neighborhoods tend to have similar houses where the builder went with similar quality and design. If one house in the neighborhood has been upgraded that does not necessarily mean the homeowner will be able to recover the price of the upgrades when selling the home. Home buyers will be looking at similar houses within a similar price range. While it may be nice to have an updated/upgraded home, buyers will not be willing to pay a premium for that option. There is also the added concern that an appraiser may not find the value to be what the seller thinks it is, which would result in a lender not approving a mortgage for the home.
If the price of a home is above other homes in the neighborhood, buyers who can afford that higher price will prefer to buy a home where other homes have a similar price point since those homes will support each other’s value. In the case of the highest priced home in a neighborhood there is little room for value appreciation since the home has already been priced above the average.
Home buyers look at things like home location, bedroom/bathroom count, square footage, and amount of yard space. Families with children may also consider school districts, proximity to parks, shopping and more. Once buyers find minimum criteria for a home in their price range, homes with additional amenities might sway them more towards making an offer but only if those amenities do not represent a significant price premium that will not fit within their budget.
The best way to get a listing price for selling a home is through a Comparative Market Analysis (CMA) which compares recently sold homes that are similar in size, features and location to the home which will be listed for sale. Other factors such as home condition, age of the mechanical systems, date of last updates should be considered when setting a listing price. A home with a less than five-year-old heating and cooling system will obviously have a price advantage over a home that still has its original 25-year-old gas furnace and only window air conditioning units within reason. Home sellers need to price their home properly according to home condition and the CMA. <a href="https://www.cincinkyrealestate.com/blog/reduce-price-home-for-sale/">Home sellers also need to be ready to adjust the price as buyer feedback comes in</a> regarding the home’s condition and pricing.
<a href="https://www.maxrealestateexposure.com/" title="https://www.maxrealestateexposure.com" id="LPlnk">Bill Gassett, owner of Maximum Real Estate Exposure</a> provided me the following insights.<br /><br />"Paul, there are many things that can stop a home from selling but the most common is an ill-advised asking price. As real estate agents we see numerous homes that have price reductions. The common denominator is either the seller or the listing agent didn't listen to the market.<br /><br />Some sellers also fail to make a good agent selection. Pricing improperly and picking the wrong agent often go hand-in-hand.<br /><br />Simply listing a home on the MLS is not enough. A targeted marketing plan designed to reach the right buyers is essential. This involves understanding the unique selling points of your property and leveraging various platforms to generate interest. Some agents don't do an adequate job of marketing.<br /> <br />The last common denominator is awful photography. In an era where online listings dominate home searches, professional-quality photos are crucial. Investing in professional photography, including drone footage and virtual tours, can greatly improve the visibility and appeal of your listing."
2. MARKETING
With pricing of a home being one of the major selling factors, if pricing was done correctly and a home did not sell then the home seller should consider whether the marketing was as effective as it could have been. Over 90% of home buying begins online and all home marketing efforts must start here. High quality photos and videos should be taken of the home in order to provide the best presentation online. Prior to taking photos and/or videos the home must be decluttered, freshened up and neatly staged so that the pictures look great. If high quality cameras are not being used to capture key rooms and features of the home, homebuyers will not be drawn in and definitely not want to visit the house in person. Blurry, dark, unfocused pictures are eye <img src="https://assets.site-static.com/userfiles/584/image/Marketing_Tips.jpg" width="400" height="300" alt="marketing tips" style="float: right;" />catching for the wrong reasons and will hurt the marketing presentation of a home.
The act of putting a sign in the front yard of a home and listing some information on a few internet websites is also not a true marketing plan. The idea for <a href="https://www.cincinkyrealestate.com/blog/marketing-remarks-for-selling-a-home/">home marketing</a> should be to get the home in front of as many homebuyers as possible so the right buyer wants to visit the home. Blasting a home for sale around the world is also not helpful since a majority of buyers already live close by to the home or are looking in local search sites for a home if they are planning to move to the area. Home sellers should understand the marketing plan their real estate agent is using or if selling for sale by owner they need to market the home accordingly.
Open houses do not sell homes and having an open house is not a marketing plan for selling a home. With less than 5% of homes being sold through an open house, the open house is more of a strategy for real estate agents to find more buyer clients. Proper home presentation both online and for the in-person visit are more effective at drawing in real buyers rather than random people at an open house who may or may not qualify to buy your home.
3. SHOW READY HOME
A show-ready home means the home is properly cleaned up and prepared so that when homebuyers come through they can see themselves living in the home. If a home has custom collections, personal pictures, unique decorations or unique paint colors/wallpaper on the walls that usually will only serve to distract buyers. Personal pictures, unique decorations and collections need to be taken down and put away so the home can be seen for what it is, a living space. Non-traditional colors for walls should be repainted in neutral colors or if wallpaper is present the wallpaper should be removed and replaced with neutral colored paint.
While no home is expected to be perfect, plans should be made as to how to <a href="https://www.cincinkyrealestate.com/blog/10-great-tips-for-showing-your-home/">quickly clean up a home so that when buyers do come by the home looks good</a>. A home seller would be best to pack all clutter up and put it in storage or in their next home if that is possible. Moving clutter from out in the open into jam packed closets won’t be helpful as buyers fully expect to see the inside of closets. Minor repair issues in a home should be addressed before the home is put up for sale. Odors/stains from pets and cooking should be taken care of as well to present a neutral smell.
Exterior curb appeal also plays into the decision-making process for buyers. Mowed lawn, leaves cleaned, fresh mulch, nice flowers go a long way towards saying the homeowner took care of their house both inside and outside. The curb appeal will draw buyers in from the very first picture online and at the very first visit so landscape maintenance must be kept up at all times.
4. ACCESS AND SHOWINGS
When a buyer is seeing 4-6 homes in a day, and they can’t get in to see a particular home because of scheduling issues that can result in a lost buyer. A home seller who makes it difficult to view a home or requires too much lead time ends up reducing their own buyer pool. The inconvenience of having to clean a home up for a showing is far outweighed by the inconvenience of having a home on the market longer and for more showings because a potential buyer who would have made an offer never got to see<img src="https://assets.site-static.com/userfiles/584/image/Access_Granted.jpg" width="400" height="400" alt="access granted" style="float: right;" /> the home. The longer the home sits on the market with no offers the more necessary price reductions will be in order to get buyer attention.
During showings all people and pets should leave the home. While it is not always possible to take pets out of the house during showings, putting the pets in their rooms, crates or other areas out of the way of homebuyers can help. If the home seller is able to getting rid of all signs of pet life in the home is ideal since not every buyer is a pet person and the seller should strive to attract an offer from any buyer.
5. COMMUNICATION
Communication is critical in the home selling and buying process. <a href="https://www.cincinkyrealestate.com/blog/tips-for-first-time-home-sellers/">As a home seller </a><br />providing answers to questions from buyers as soon as possible helps pave the way for offers to come in. By delaying answers buyers may talk themselves out of a great home that would work for their needs. Sometimes the answer to those questions is the only thing preventing an offer from being submitted.
Some offers on homes can come with short time frames to respond. By failing to respond to that offer within the given time the seller could lose out on a good offer. Regardless of what is going on the home seller needs to be available to review and discuss offers with their real estate agent.
6. MOTIVATION
While this is the last area listed it can also be the number one source for a home not selling since if motivation is lacking the rest of the points above don’t really matter. What is the motivation to sell the home? Are those motivations still valid? The home seller needs to understand their motivations and commit to the goal of getting the home sold if that is the desire. Half hearted attempts come through in terms of house staging, pricing, communication and more.
Final Thoughts
Selling a home involves quite a bit of planning and preparation in order to make sure buyers are ready to come in and view the home. Home sellers can hurt their home sale chances by overpricing, not having the right marketing done, failing to communicate with the real estate agents and/or buyer and more. By avoiding these pitfalls, the home seller can make sure they sell their home on the first listing try.
Additional Resources
<a href="https://original.newsbreak.com/@kevin-vitali-1600163/3340014616519-avoid-the-unintended-consequences-of-overpricing-your-massachusetts-home">What Are The Consequences of Overpricing a Home?</a> - From wasting time to marketing to the wrong buyers getting the price wrong does no one any good in the end. Learn about some of the issues with overpricing and how to avoid those issues.
<a href="https://curbio.com/curb-appeal-blog/how-to-revive-stale-listings/" target="_blank">Tips For Selling a Stale Listing</a> - A stale listing or one that is sitting on the market unloved by buyers needs a good approach to get good traction. Sometimes a fresh perspective can change the outlook.
About the author: The above article “Reasons Why Your Home DId Not Sell” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Common_Reasons_PIN.jpg" width="1000" height="1500" alt="common reason home sale fails pin" />2024-03-07T05:00:00-07:002024-03-07T08:37:49-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:22404Tips For First Time Home Sellers<img src="https://assets.site-static.com/userfiles/584/image/First_Time_Seller.jpg" width="535" height="635" alt="first time home seller tips" style="display: block; margin-left: auto; margin-right: auto;" />
Tips For First Time Home Sellers
Getting ready to sell a home is more than just <a href="https://www.cincinkyrealestate.com/blog/real-estate-listing-agreement/">signing a listing agreement </a>and posting the house on the local multiple listing service (MLS). In order to get the best possible offer the first time home seller should make sure their home is in tip top condition both looks and function wise. Having broken appliances or fixtures, dirty walls, dirty floors or more just distract buyers from seeing what the home is truly capable of. In this article first time home sellers can learn about some of the important areas they should be addressing before listing the home for sale.
Home Repairs
Making sure the home is in tip top condition with no clear repair issues is an important step to take to make sure buyers are happy with the home they see. Homes with deferred maintenance can be seen as ticking time bombs by home buyers. Since if there are some issues left untouched what else could be hiding beneath the surface of a home that can be an expensive surprise to a new owner. For those issues, sellers may not be aware of getting a pre-listing home inspection can help the first-time home seller identify critical areas that need to be addressed.
When a home buyer gets a home inspection report with little to no significant issues that will only help the closing process go through that much quicker. By repairing things prior to listing the home for sale the home seller can save valuable time by not having to get repairs done in a short time frame if the <a href="https://www.cincinkyrealestate.com/blog/negotiating-post-inspection-repairs/">buyer were to request repair of issues</a>. When there is a closing deadline some repairs may have to be done by the highest bidder who is available now so closing can happen on time. By making those repairs prior to listing the home the seller does not have to worry about the time crunch.
Clean Up
Not only does a clean home look great in pictures it looks great to buyers when they visit the home in person. With over 90% of home searching beginning online making sure the home looks great in photos and video is important. While the search begins online the sale is closed in person so the home needs to deliver what it promised via photos and videos. That means making <img src="https://assets.site-static.com/userfiles/584/image/Man_Taking_Picture.jpg" width="400" height="600" alt="take picture" style="float: right;" />sure the home is clean and smells great. Smelling great does not mean covering up odors but making sure the source of any odors has been removed and the house cleaned up to be odorless.
Fresh paint, cleaned (or replaced) carpets, refinished hardwood, clean windows, no smoke or cooking stains on the ceilings/walls and more should be part of the cleanup process and is something to make sure is done anytime a buyer, home inspector or appraiser will be stopping by. Reduction of household clutter is also another big positive for buyers in that they can see the home for what it is rather than being distracted by random things in the home. Buyers need to be able to imagine themselves in the home rather than seeing the home through the eyes of the homeowner with their belongings, clutter and personalization.
Depersonalize
A home with too much personality of the homeowner can distract buyers from envisioning themselves in the home. Instead the home seller should make sure all personal items, photographs, collectibles are put away safely and securely. That way the buyer is able to see the home for what it really is, a living space for them and their family.
Updates
Unless the home has been recently built and is no more than five years old it could benefit from updates especially where none have been done. Updating things like appliances, windows, doors, fixtures and more can improve the overall look and function of a home. Especially as more buyers look for smart home features adding those features to a home will help persuade the buyer to make an offer on an updated home. <a href="https://www.cincinkyrealestate.com/blog/bathroom-remodel/">Updating rooms like the bathroom</a>, kitchen, den, bonus room, fitness room or more might make sense if those spaces are very outdated.
I contacted real estate pro Bill Gassett of <a href="https://www.maxrealestateexposure.com/" id="LPlnk339066" title="https://www.maxrealestateexposure.com">Maximum Real Estate Exposure</a> to get his take on improving a home. Here is what Bill told me:
"Paul, updating a home can significantly enhance its value. It is a crucial step for homeowners looking to maximize their investment. The importance of having an updated property extends beyond just aesthetic appeal. It touches on various aspects such as functionality, energy efficiency, and market competitiveness.
Homes recently updated or renovated typically fetch a higher price on the market. Updates, especially in critical areas like kitchens and bathrooms, can significantly increase a home's appeal to potential buyers. These essential upgrades lead to a higher selling price.
Updating your house can also mean making it more functional and efficient. This can include adding modern appliances that consume less energy, improving insulation, or installing smart home technologies. These updates not only make your home more comfortable and convenient to live in but can also reduce utility bills, a selling point for potential buyers.
I have updated my homes for personal enjoyment and the ROI before selling."
Landscaping and Outdoor Spaces
<a href="https://www.cincinkyrealestate.com/blog/better-home-landscape/">Regardless of the time of year the landscape should be taken care of</a>. Even in the coldest months of winter if there are dead plants or trees in the ground they should be dealt with before listing the home for sale. No one is suggesting having a dead tree dug up during the wintertime, but having it cut down to the ground level and taken off site can be done. Especially if close to the house that dead tree can end up causing problems if the weather causes it to fall on the house. Many buyers will notice things like that and those who may not will have it pointed out to them by their home inspector. Curb appeal is important no matter what time of year it is.
Removing out of date seasonal decoration should also be on the list of things to do before listing a home for sale. Not everyone celebrates the holidays in the same way and leaving up decorations way past their time for use could make the buyers think the<img src="https://assets.site-static.com/userfiles/584/image/landscape_lighting_small.jpg" width="400" height="262" alt="landscape lighting" style="float: right;" /> sellers are lazy. If the sellers are lazy for holiday decorations what else could they be lazy for when it comes to maintaining the house? Whether true or not it does not matter, the home seller should be showing that they care for the house they want to sell and demonstrate that.
During the spring and summer months the home seller needs to make sure the lawn and landscaping are well maintained. That means pruning trees, bushes, shrubs so they look great. This goes back to having a picture-perfect home so they when browsing online buyers are attracted to the home with great curb appeal. That look needs to be maintained so when buyers visit in person they do not think of bait and switch sales tactics.
Final Thoughts
First time home sellers need to prepare their home to shine not only online but also every time a buyer visits. Any lack of care or preparation can result in no offers or low offers by those looking for a deal. The sooner the first time home seller begins getting ready for the home sale the better.
Additional Resources
<a href="https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/" target="_blank">Understanding Seller's Property Disclosure Form</a> - As part of selling a home the seller will need to provide a disclosure form that will provide condition information to potential buyers. Accurate disclosure is important as this article explores.
<a href="https://frederickrealestateonline.com/top-15-staging-rules-for-frederick-sellers/" target="_blank">Home Staging Tips For First Time Home Sellers</a> - Home staging is about setting the home in a position where buyers appreciate the home for what it is rather than what is in it. With a neutral house buyers can better imagine themselves in the home.
About the author: The above article “Tips For First Time Home Sellers” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/First_Time_Seller_PIN.jpg" width="1000" height="1500" alt="first time home seller pinterest pin" />2024-02-29T05:00:00-07:002024-02-28T15:50:00-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:22283Can A Mortgage Be Transferred To Someone Else<img src="https://assets.site-static.com/userfiles/584/image/Mortgage_Transfer.jpg" width="535" height="635" alt="Can A Mortgage Be Transferred To Someone Else" style="display: block; margin-left: auto; margin-right: auto;" />
Can A Mortgage Be Transferred To Someone Else
Some homeowners may get an offer to “buy” their home where the buyer proposes to give a small down payment to the homeowner and take over the existing mortgage. As part of this deal the buyer agrees in writing to continue paying on the mortgage. Especially with mortgage interest rates much higher than they were in the recent past getting a house with a low-rate mortgage can be a great deal. Once the homeowner moves out the buyer will then attempt to sell, rent or live in that house. The problem with situation becomes when the current homeowner does not have an assumable mortgage or has not done the proper paperwork for the buyer to assume the mortgage when the mortgage is assumable. If the buyer stops paying on the mortgage the trouble will begin.
Which Mortgages Are Assumable?
An assumable mortgage means a buyer can officially take over an existing mortgage and take the place of the current homeowner whose name is on the mortgage. Generally VA (Veteran’s Administration) and FHA (Federal Housing Authority) mortgages are the only assumable mortgages for residential real estate. Both the VA and <a href="https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh/4330.1" target="_blank">FHA have rules and requirements for the new buyer to meet prior to being able to assume the mortgage</a>. Failing to meet those requirements can prevent the assumption of the mortgage. As a result the homeowner needs to be discussing the assumption process with the VA/FHA at the very start before any agreements are made to sell a home with the condition of the buyer assuming an existing mortgage.
Can a Buyer Take on a Non-Assumable Mortgage?
Depending on how the transaction is done a homeowner could run the risk of violating a mortgage clause called the <a href="https://www.cincinkyrealestate.com/blog/should-you-put-your-home-in-an-llc/">“due on sale clause”</a>. Under the due on sale clause any transfer of the property from the existing borrower to another person or entity (LLC or corporation) triggers the due on sale clause and the lender can demand immediate payment of the entire mortgage amount. <img src="https://assets.site-static.com/userfiles/584/image/Angry_Woman_Phone.jpg" width="400" height="267" alt="angry woman" style="float: right;" />Sometimes in order to avoid this the buyer suggests the homeowner keep their name on the deed and have a separate agreement to cover the buyer taking over the home and the mortgage.
The biggest risk with this type of transaction is if the buyer fails to make payments for taxes, insurance or the mortgage payment the homeowner is still on the hook for those amounts owed regardless of what some contract between the buyer and homeowner says. The tax authority will come after the person whose name is on the deed and the lender will come after the person who originally took the mortgage out. Usually the mortgage requires homeowners insurance to be maintained while there is a loan on the property. If the buyer lets that insurance lapse there could be problems as a result with the lender.
Even if the homeowner can get back possession of the home after the buyer stops paying, who knows what the condition of the home will be in and whether it can get enough money on an open market sale to pay off everything that is back owed to the government and lender. Giving away a house to a buyer because they offer an up-front amount of cash and agree to make the mortgage payments for the homeowner is not the easy way out with regards to a home. If the homeowner wants to sell the home, they can approach any local real estate agent and have them list it for sale. Even when selling a home as-is, due to the homeowner not wanting or being unable to make repairs or updates, the home will be a better alternative to selling to some random buyer who also wants to assume the mortgage.
Eric Jeanette, CEO of <a href="https://nonprimelenders.com/" target="_blank">Nonprime Lenders</a> has weighed in on assumable mortgages. "Paul, assumable mortgages can help the seller to get maximum value when prevailing interest rates are higher than the current mortgage on the property. However, the challenge is getting the current lender to agree. The buyer of the home also must qualify for the mortgage that will be assumed.
What Kind of Buyers Offer to Buy and Assume the Mortgage?
While there are some legitimate buyers who want to buy a home and live in it and think that by assuming the mortgage of another with a low rate they will have an advantage, other times it is the investor buyer looking for a little to no money down real estate investment purchase. Not only does the low money down option appeal to these investor buyers, being able to “buy” the home with a low interest mortgage rate is even better since they are hoping to make more in rent than they must pay towards mortgage, taxes and insurance. There are investor courses that teach this exact strategy.
These investor buyers are looking to become landlords using someone else’s home and are really just renting the home from the homeowner and hoping to make a profit. Sometimes they are taught that real estate investing is passive income with little input needed from the owner once the right systems are put into place. Passive income real estate investing is a myth unless one is investing in a real estate investment trust which is sold as a stock on the stock market. Once the buyer realizes it is more work for less pay they may decide to walk away after which the homeowner will have to deal with the results.
How Should a Homeowner Sell Their Home
As discussed briefly above the homeowner should be speaking with local real estate agents to first determine what their home is worth and then discuss a strategy for listing the home for sale on the market. Even if the homeowner does not want to or is not <img src="https://assets.site-static.com/userfiles/584/image/Piggy_bank_on_money_key.jpg" width="400" height="266" alt="piggy bank" style="float: right;" />able to improve the look of the home, by listing on the local MLS and listing it at the right price there will be buyers ready to purchase the home. Those buyers who come looking to buy via the MLS will also be ones who are ready to take out their own mortgage loan so the homeowner’s mortgage can be paid off upon closing. Anytime a buyer approaches the homeowner directly they should be talking at minimum with a local real estate attorney or a local real estate agent.
With an on-market sale the home will be properly transferred to the new buyer so the tax collector will only be looking to the new owner to pay any bills after closing date. The effort to sell a home on the open market is not that much if the homeowner does not want to put that much effort into it. On the other hand, selling the home to an investor who does not really “buy” the home but instead “rents” it can lead to a lot of headache and stress if that investor decides they no longer like that hobby.
Final Thoughts
If something sounds to good to be true it usually is. There is no easy way to transfer a home without jumping through the proper hoops. By attempting to transfer a mortgage without understanding the legality about it can result in long term pain.
Additional Resources
<a href="https://www.realestatemortgageblog.com/mortgage/fha/fha-underwriting-guidelines/" target="_blank">Important FHA Guidelines to Understand</a> - FHA Mortgages have a different set of requirements than a conventional mortgage. FHA buyers need to understand the process in order to help get success in the process.
<a href="https://merrimackvalleymarealestate.com/for-sale-by-owner-fsbo/" target="_blank">Tips For Selling For Sale By Owner (FSBO) </a>- Selling a home for sale by owner can be done and is done successfully by those willing to put in the effort. This article explores the steps a homeowner can follow to sell their home on their own.
About the author: The above article “Can A Mortgage Be Transferred To Someone Else” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Mortgage_Transfer_PIN.jpg" width="1000" height="1500" alt="Can A Mortgage Be Transferred To Someone Else pin" />
2024-02-08T07:00:00-07:002024-02-08T06:52:53-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:11363What Does It Mean To Be House Poor?<img src="https://assets.site-static.com/userfiles/584/image/House_Poor.jpg" width="535" height="635" alt="what to do when house poor" style="display: block; margin-left: auto; margin-right: auto;" />
What Does It Mean To Be House Poor?
Getting into a house poor situation usually is the result of stretching ones budget in the hopes of some future promotion, bonus, or new (read pays more) job. Other times it may be because there is a change it job situation or change in marital status and now what used to be enough earnings to cover the mortgage payment is gone. Being in a house poor situation means barely being able to afford the mortgage on a home and as a result falling behind in important repairs and maintenance of the house. There are some different options homeowners can consider when they find themselves in a house poor situation as discussed in this article below.
Figure Out What Fits Within the Budget Before Buying
It is easy to get carried away in the excitement of home shopping and start looking at homes before one has sat down with a mortgage lender to figure out what the monthly payments will be. That is a sure-fire way to lead to disappointment when one finds that “house of their dreams”, the must have house which leads to stretching oneself to purchase that home. Any home buyer should first determine <a href="https://www.cincinkyrealestate.com/blog/mortgage-pre-approval-paperwork/">how much mortgage they can get pre-approved for </a>and then consider that monthly payment in terms of their monthly take home pay. Stretching that budget because there is a promotion on the horizon or because of an expected new (higher paying) job while tempting, is a path towards being house poor.
New jobs and promotions are not guaranteed in life and just as easily as those promotions can come a homeowner can find themselves without any job for any number of reasons. In the past it was common to keep the housing budget to no more than 20% of income. These days some lenders are willing to push that to 36-40% of income which can lead to trouble down the line.
When looking at the numbers make sure to account for property taxes and homeowners insurance. Taxes and insurance can be included in the mortgage payment where the lender requires it based on the downpayment amount, or where the buyer wants it to make sure taxes and insurance are paid for by the mortgage company. So while the principal and interest payment of the thirty-year fixed mortgage will stay the same for thirty years, the <a href="https://www.cincinkyrealestate.com/blog/mortgage-payment-changes/">taxes and insurance do not stay the same for a home</a>. In fact, insurance rates and tax rates have been going up for many homeowners who have recently purchased a home. Homeowners<img src="https://assets.site-static.com/userfiles/584/image/plumbing_tools.jpg" width="400" height="242" alt="plumbing repairs" style="float: right;" /> who bought at the top of their budget range are now facing a much tighter financial situation and their overall quality of life will suffer as a result of it.
Just because a homeowner is able to stretch a little to make the payments on a higher cost home, the added expenses that come along with owning a home will stretch the budget to the breaking point. Deferring costs on certain home repairs cost homeowners much more in the long run since not making repairs to something like a small roof leak now can lead to a larger cost later when rotted wood and drywall needs to be removed and replaced. The livability of a home can easily be degraded with lack of maintenance.
Bill Gassett of <a href="https://www.maxrealestateexposure.com/" title="https://www.maxrealestateexposure.com/" id="LPlnk746284">Maximum Real Estate Exposure</a>, a Realtor with many years of experience and expertise, shared this with me.
"Paul, it is common for some homebuyers to overstretch when buying a home. It has become especially prevalent in the heated seller's markets nationwide over the last few years.
Buyers are getting caught up in bidding wars and spending more than planned. It's essential to realize there are other expenses when buying a home besides mortgage payments, taxes, and insurance.
Even though a mortgage lender will qualify you at a certain spending threshold, it makes sense not to hit the limit.
There are other expenses to consider, like buying groceries, filling your gas tank, and going out to dinner. You can avoid being house-poor by staying under your means. Sometimes, buying a less expensive home means a bit of a sacrifice, but it could be worth it."
WHAT TO DO AFTER YOU HAVE PURCHASED A HOME
If a homeowner has already purchased a home and find themselves in a cash crunch situation where paying for the upkeep of the home is challenging or the mortgage payments themselves are causing a strain, there are some options to consider:
Refinance
Depending on how long the home has been owned for and how much of the mortgage has been paid off, refinancing the mortgage may be an option. If there is a lower balance on the mortgage after having paid on it for a number of years, a new mortgage should result in lower payments providing the homeowner does not take on additional debt in the form of a cash out refinance. I<a href="https://www.cincinkyrealestate.com/blog/how-will-higher-interest-rates-impact-real-estate/">f the interest rates are lower than the current rate on the mortgage</a> that also could result in a reduction in the monthly mortgage payment.
For those who have just recently purchased a home within the last few years, if rates are up rather than down and the principal balance has not been reduced by much then a refinance will result in a higher monthly payment due to the higher interest rates. In the situation where the home’s value is lower than when first purchased (whether for lack of repairs or market conditions) refinancing the mortgage may not be possible. This will depend on how much equity is in the home and what terms a mortgage lender is willing to lend on. The homeowner should consult with a mortgage lender to determine whether refinancing makes sense.
Bring in Roommates
No matter what anyone says, owning investment real estate is not passive. Even when hiring a property manager to manage the property the owner will still need to interact with the property manager to make sure things remain on track. Especially when bringing in roommates to help pay the mortgage, more attention will need to be paid to make sure everyone is happy. For those with an unused basement or those who have space in the house where they can create an entirely separate living unit the ability to bring on a tenant to help pay the mortgage becomes easier.
The homeowner needs to make sure the space they want to rent out meets all local building code requirements. Just because the basement is empty does not mean the homeowner can rent it out as a legal unit if it does not meet local requirements with regards to living standards. Renting out part of the house that is not suited for being rented out under the law is the quickest way to get a visit by the local building authorities. If the tenants complains about something to the housing authority, gets injured or worse <img src="https://assets.site-static.com/userfiles/584/image/Abnb_rent.jpg" width="400" height="400" alt="short term rental desperate " style="float: right;" />suffer loss of life because they could not get out of their living space in an emergency the homeowner will face harsh and expensive legal consequences.
Some owners with available space may also be able to <a href="https://www.cincinkyrealestate.com/blog/long-term-rentals-short-term-rentals/">rent out the space on a short-term basis</a> using services such as Airbnb or VRBO. The homeowner needs to check with the local zoning/building department with regards to any laws and regulations surrounding short term rentals. There may be up-front costs associated with setting up a short-term rental and it is not something one does at the drop of a hat. To do it properly and to get the best return the homeowner should research this option to make sure they know how to get the best tenants and deliver an experience the tenants are happy with.
Sell Your Home
Another option to get out from under the house poor situation is to consider selling the home and moving into something more affordable. Timing is of the essence and selling before one gets behind on mortgage payments is a wise thing to do as it could save more money down the line by not having a credit score that has been knocked down due to late mortgage payments. Getting another mortgage or even renting a place will become harder with a poorer credit score. The homeowner should be looking at rent options and options for buying a most cost-effective home in this process to make sure they are going to a better situation.
If the homeowner has negative equity in the house selling can be more challenging. The homeowner may need to bring cash to the closing table in order to close on the home. If the homeowner does not have enough cash to bring closing, they should discuss with their lender the possibility of a short sale. By getting out from under a house poor situation as soon as possible the homeowner can go onto rebuilding their finances.
In some states, where a short sale is pursued, the homeowner may still owe to the lender the difference between the purchase price and what the home was sold at. Even if the homeowner does not owe anything to the lender, they may owe taxes on the forgiven debt. Ideally the homeowner should be discussing their situation with an attorney to make sure their rights are protected, and the best path forward is chosen.
The alternative of short sale is more preferred over foreclosure as the homeowner may be able to buy another home sooner rather than later. Even with renting a living space many property managers consider credit scores of their applicants as part of the rental approval process. Foreclosures result in a larger reduction in one’s credit score as compared to a short sale.
Bottom Line
The best way to avoid being in a house poor situation is to make sure home buyers are only buying a home that is truly affordable from the start. Stretching to buy a “dream home” can quickly turn into a nightmare money pit when the home can’t be properly maintained due to being unable to afford to do so. Taking on roommates, refinancing the mortgage or even selling the home can prevent the homeowner from getting into a dire financial situation from being house poor.
Additional Resources
<a href="https://merrimackvalleymarealestate.com/how-much-house-can-i-afford/" target="_blank">How Much Of A House Can I Afford?</a> - Buying a home means more than just being able to afford the monthly mortgage payment. Owning a house means keeping it maintained and up to date. Overspending on a home is a sure fire way to financial pain.
<a href="https://dreamhomefinancing.com/disclose-a-foreclosure/" target="_blank">Foreclosure Disclosure Rules </a>- Once a homeowner has been through a foreclosure the impact on their credit is immediate. How long does that foreclosure stay in place is another question that is considered in this article.
<a href="https://www.realtor.com/mortgage/tools/affordability-calculator/">Home Affordability Calculator</a> - Understanding how much one can afford to pay for a home is important so plug in the numbers for your area and determine what works for you.
About the author: The above article “What Does It Mean To Be House Poor?”
was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/House_Poor_PIN.jpg" width="1000" height="1500" alt="house poor pin" />2024-01-25T05:00:00-07:002024-01-25T09:42:08-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:22124Luxury Home Features For Any Home<img src="https://assets.site-static.com/userfiles/584/image/Luxury_Features.jpg" width="535" height="635" alt="Luxury Home Features For Any Home" style="display: block; margin-left: auto; margin-right: auto;" />
Luxury Home Features For Any Home
Adding features found in luxury homes can be done for any home but to get the best return on investment (ROI) the home should be in a location where it can realize some gain in value. A home surrounded by other homes which do not have some of these high-end features may seem nice but will not get much increase in value with added luxury features. On the other hand, homes in neighborhoods where other homes have some of the features, adding those features could possibly help the home value. Adding one or more of these luxury features for homeowner enjoyment without regards to value though may be just what is called for if the homeowner is wanting it for their own enjoyment.
Central Vacuum System
Having a central vacuum system is something found in luxury homes. Rather than carrying around a cannister vacuum to vacuum the house the homeowner instead moves the vacuum hose from room to room as needed. The central vacuum system needs to be emptied less frequently as well as usually there is a large cannister which holds all the vacuum debris in one location. Sometimes homeowners install a kitchen vacuum port where one can sweep up debris to a single location and let the vacuum suck it up.
Typically, central vacuum systems are easiest to install when the <a href="https://www.cincinkyrealestate.com/blog/new-construction-luxury-home/">home is being constructed</a>. A home being remodeled where drywall is being removed might also be an ideal time to have installed a central vacuum system as the pipes and power for the system are usually installed behind the walls. Central vacuum systems can be installed in existing homes as well with the right tools and equipment.
Sauna
A homeowner can add a sauna as a standalone installation in the basement, on the outside of the home, as part of a home gym, or as part of a “spa-like” bathroom. Sauna’s are found in luxury homes and are not too difficult to install provided the space is available. Different types of saunas include infrared heat based, steam saunas and dry heat saunas. These saunas can be <img src="https://assets.site-static.com/userfiles/584/image/luxury_bathroom_copy_2.jpg" width="400" height="267" alt="luxury bathroom" style="float: right;" />heated through electricity, natural gas, wood or coal burning as well. If one has the space in their home, there are sauna options for one person only setup to saunas that can fit the whole family and more. There are a number of <a href="https://health.usnews.com/wellness/articles/benefits-of-sauna" target="_blank">health benefits for using a sauna</a> and a home that has a sauna can be a great selling point in a luxury home.
Dedicated Fitness Room
Whether the fitness room is for doing yoga, calisthenics, weight room, boxing, martial arts or something else, having a dedicated room for working out is something found in many high-end homes and can be added to most any home if the space is available. These rooms typically feature full-length mirrors, large fans for circulating air, padded floors, a TV and/or sound system and more. Fancier fitness rooms can include things like a sauna (see above), hot tub, cold tub, shower, full sink and more. Anything that one can find in your local gym is something that can be used in a dedicated fitness room.
The homeowner may have an idea in mind for their fitness room or they can borrow ideas from local gyms that they believe will work best in their home. There are even online tools one can use to design their home gym or there may be local fitness instructors who can provide guidance on the best gym setup. A homeowner can also ask around at local gym supply businesses as to what would be the best set up based on the homeowners need.
Outdoor Kitchen
If a homeowner uses their <a href="https://www.cincinkyrealestate.com/blog/better-home-landscape/">outdoor space</a> on a regular basis adding an outdoor kitchen could be a great feature to have. Whether set up on a deck or on the ground level in a backyard patio, the outdoor kitchen allows the homeowner to cook and entertain guests outside while the weather permits. Especially when it comes to cooking things like barbecue or other foods that produce a lot of smoke and possibly strong cooking odors, the outdoor kitchen allows the homeowner to prepare those foods without the worry of indoor air quality.
Outdoor kitchens can include features like built-in grills, cooktops, ovens, refrigerators, a sink, countertop space and more. For those wanting to entertain guests in the outdoor kitchen, having proper seating spaces and entertainment features like outdoor speakers for music and a TV to watch the game can be a great addition. Outdoor kitchens are a great feature that homeowners can use and depending on the setup (covered area) may even be able to use year-round.
Bathroom Spa
Setting up a <a href="https://www.cincinkyrealestate.com/blog/what-are-luxury-homebuyers-looking-for-in-a-home/">bathroom to be more spa-like</a> means adding things like towel warmers, supplemental heat just for the bathroom (infrared lamps mounted on the ceiling), jetted/heated tub, multi-sprayer shower heads (or rainfall type shower), heated floors, aromatherapy, audio and more. All these features allow the homeowner to have a more luxurious experience and unwind after a hard day of work. The finishes in the bathroom also should be top notch and feature materials like granite, marble, slate or some other similar high-end finish.
Hot Tub
Hot tubs are one of the more common features seen with high end pool setups, but standalone hot tub systems can be installed in a home. Generally due to weight of the tub combined with the water weight these hot tubs need to be on the ground level floor or are installed outdoors. Hot tubs can seat as few as one or two people and range to hot tubs that can hold eight or more. The more premium hot tubs feature wireless Bluetooth speaker connectivity, LED lighting, advanced water sanitization tech and more.
Multi-Zone HVAC
This luxury upgrade is going to entirely depend on the size of the home. A smaller home may not benefit from having different zones for the HVAC system as the cost for installing multiple HVACs as well as the cost to maintain them can be high. A larger home on the other hand can benefit from multiple HVAC systems since it will allow more efficient cooling/heating for the areas <img src="https://assets.site-static.com/userfiles/584/image/heat_pump_diagram.jpg" width="400" height="400" alt="heat pump" style="float: right;" />that are used more frequently. These types of multi-zone systems are best designed and installed by professionals who know about residential heating and cooling systems.
The HVAC systems can be upgraded to include high efficiency air filters which help improve air quality in the home, a UV air sanitizing system to reduce airborne germs as well as an energy recovery ventilator which allows fresh air to be fed into the system and cooled/warmed as needed prior to going to the rest of the house. Combining a multi-zone HVAC system with smart thermostats that also use occupancy sensors and the homeowner can have a great system that works where the residents are the most.
Final Thoughts
Not all of these luxury upgrades are going to provide the best ROI. Homeowners need to understand their neighborhood and how the homes are priced there if the primary consideration is improving the value of one’s home with a luxury upgrade. If the homeowner wants to add a luxury feature for their own enjoyment, then value should not really be a concern in the short term.
Additional Resources
<a href="https://www.maxrealestateexposure.com/luxury-home-features-ideas/" target="_blank">Features To Include In Your Luxury Home Build</a> - When building a new luxury home including these popular features can help ensure the value of the home stays strong and makes sure the homeowner gets maximum enjoyment out of their home.
<a href="https://merrimackvalleymarealestate.com/luxury-homes-mansions-estates/" target="_blank">Diving Into What Is Luxury Real Estate</a> - Luxury real estate is more than just the cost of a home and the size can also vary depending on location. Learn about some of the features, amenities and finishes that make a luxury home luxurious.
<a href="https://dreamhomefinancing.com/luxury-home-financing/" target="_blank">Luxury Home Financing Options</a> - Learn about the different mortgage options when it comes to buying a luxury home.
The above article “Luxury Home Features For Any Home” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Luxury_Home_PIN.jpg" width="1000" height="1500" alt="Luxury Home Features For Any Home pin" />2024-01-11T09:00:00-07:002024-01-24T16:39:16-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:22049What Happens on the Day of Closing?<img src="https://assets.site-static.com/userfiles/584/image/Closing_Day.jpg" width="535" height="635" alt="What Happens on the Day of Closing?" style="display: block; margin-left: auto; margin-right: auto;" />
What Happens on the Day of Closing?
On the day of closing the buyer and the seller are at the end point of the journey for buying/selling a home. There will be a number of documents for both parties to sign. At this point the background title search will also have been completed, the mortgage loan (if being used to make the purchase) being given clear to close and any down payments (or payments from the seller) must be made. This article explores in depth what happens on closing day so both the buyer and the seller of a home can be prepared.
Buyer Closing with a Mortgage
Once the mortgage lender gives the buyer clear to close on the loan the actual closing can be scheduled and is usually scheduled by the title company. The mortgage lender will typically send the funds to the title company ahead of the actual closing time. Once all parties have signed their documents and the lender has gotten and approved of their required documents then the title company will be given authorization to release the funds to all parties as required by the contracts.
The buyer and the seller can meet at the closing table if their schedule permits. Closings can be done separately though with the buyer and seller signing separately at their own time and even in different locations. Not until both parties sign though is the transaction considered closed. The seller will not be able to get their proceeds check, nor will any of the real estate agents be able to pick up their commission check until both the seller and the buyer have signed their documents and provided their payments.
Typically, it is the buyer who must bring money to the closing table and that money is to cover the down payment as required by their mortgage as well as cover closing costs if not paid by the seller. While the seller usually gets a check back upon closing that is not always the case. If the seller owes more on the home mortgage than the home will get on closing of the sale, then the seller will also have to bring money to closing. Where the seller owes less on the home mortgage than the final sales price, the proceeds from the sale will be used to pay off the seller’s mortgage and closing costs and the seller gets whatever remains.
During a closing with a mortgage the buyer will have a majority of the documents to sign. There will be mortgage loan (note), loan application, loan estimate and additional documents. Usually the seller does not have many documents to sign. The seller will be signing the deed transfer documents, closing disclosure and more. There will be some documents that are signed by both the<img src="https://assets.site-static.com/userfiles/584/image/Luxury_Home.png" width="512" height="512" alt="luxury home" style="float: right;" /> buyer and the seller and the person conducting the closing will make sure documents are signed in the right location and signatures are notarized when necessary.
Bringing Money to Closing
Sometimes the seller is required to bring money to closing. As noted above, in the situation where a seller owes more on the home mortgage that they are getting on sale the seller will have to bring cash to the closing table assuming this is a traditional sale and not a short sale. In a majority of cases the seller is getting money back at the closing table after any mortgages and taxes are paid off.
The buyer on the other hand will usually be bringing money to the closing table to pay for down payments, closing costs, a home warranty (if selected) and other costs associated with buying a home. There are closings where the buyer is buying a home with a no money down mortgage loan (like USDA or VA mortgage) and getting seller paid closing costs and as a result the buyer does not have to bring any cash to the closing table.
When the buyer does have to bring cash to the closing table, they need to verify ahead of time how the title company wants the funds. Some title companies require funds be brought in the form of a certified check or be wired into the title company’s bank account. Usually the requirements for how the money is to be provided to the title company is based on how much money is being brought it. The buyer should consult with the title company well in advance to make sure the money is sent according to title company requirements.
The seller usually has the option of getting their proceeds from the sale either in the form of a check or wired directly to their bank account. The seller should be discussing with the title company ahead of time the methods the title company provides for paying out seller proceeds and any fees associated with such method. When wiring money there are usually wiring fees that the title <img src="https://assets.site-static.com/userfiles/584/image/Locked_Cash_Reduce.jpg" width="300" height="450" alt="locked money" style="float: right;" />company will charge when sending money via wire.
Anytime funds are being wired to the title company (whether by the buyer or the seller), care should be taken to make sure the funds are wired to the title company and not some fraudster. There have been many cases where the title company, the real estate agents, the lender or someone else in the transaction has their email hacked or has their <a href="https://www.cloudflare.com/learning/email-security/what-is-email-spoofing/" target="_blank">email spoofed</a>. A spoofed email looks legitimate and directs the person sending the wire to send it to the wrong account. Once wired the money could be lost forever. Whoever is sending the wire should directly call the title company and verify wiring instructions. Sometimes the bank where the wire is being sent from will call to verify wiring instructions, but it is still the responsibility of account owner to make sure the money is sent to the write account.
Final Thoughts
Closing on a home can be an exciting time whether from the buyer or seller perspective. Avoid mixups and delayed closing means understanding and being ready for everything come closing day. Both buyer and the seller need to be on the look out for potential scams/fraud as well.
Addtional Resources
<a href="https://www.maxrealestateexposure.com/earnest-money-faqs/" target="_blank">FAQs about Earnest Money</a> - Upon closing the earnest money should be generally credited to the buyer. Earnest money in general has a number of different rules and requirements with it and this article provides answers to common earnest money questions.
<a href="https://frederickrealestateonline.com/final-walkthrough-real-estate/" target="_blank">The Final Walkthrough Before Closing</a> - Prior to closing all buyers should be walking through the property in order to make sure it is still in the same condition as when initially seen. This will be the last time the buyer can correct any major issues with the seller.
<a href="https://merrimackvalleymarealestate.com/home-selling-mistakes/" target="_blank">Common Home Seller Mistakes</a> - For the seller everything comes down to closing day. Missing some steps prior to that may delay or even cancel closing so sellers need to keep on top of their tasks.
The above article “What Happens on the Day of Closing?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Closing_Day_PIN.jpg" width="1000" height="1500" alt="what happens on closing day? PIN it." />2023-12-28T05:00:00-07:002023-12-27T11:00:12-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21949Common Real Estate Myths<img src="https://assets.site-static.com/userfiles/584/image/Real_Estate_Myths.jpg" width="535" height="635" alt="Common Real Estate Myths" style="display: block; margin-left: auto; margin-right: auto;" />
Common Real Estate Myths To Know About
Myths about real estate and homeownership have been around for a long time. These myths are passed along sometimes as common knowledge but when taking a little closer look, the facts do come to light. Check out some of the common myths and the reality of the situation in this article below.
Myth: Home Buyers Don’t Need a Mortgage Pre-approval Prior To Seeing Homes
With a home being one of the most expense purchases made in one’s lifetime, not knowing ahead of time the amount of money they can borrow to buy a home can lead to great frustration. Seeing a house that a buyer truly loves only to then find out it is out of their price range means a lot of wasted time and wasted effort. <a href="https://www.cincinkyrealestate.com/blog/mortgage-pre-approval/">A mortgage pre-approval is an easy process</a> providing the home buyer has all their paperwork ready to give to the mortgage lender. By getting a pre-approval ahead of time not only does the buyer learn the amount of mortgage they can get but other issues can be taken care of if they do pop up before any offer is made. Things like correcting credit report errors or simply paying down certain accounts the buyer can get a better interest rate and better terms which leads to big long-term savings.
As part of the mortgage pre-approval process the buyer will learn how much money they will need to bring down when purchasing a home based on the mortgage type. Sometimes this can be a large number (depends on mortgage type) and the buyer may not have all that cash ready to put down towards a downpayment. Which means if they do find a home they love and can’t come up<img src="https://assets.site-static.com/userfiles/584/image/House_being_held_up.jpg" width="400" height="267" alt="hold up the house" style="float: right;" /> with the downpayment money they can’t buy the home. By knowing ahead of time how much they need to save up to make their purchase they can tour homes accordingly.
Myth: Real Estate Agents Don’t Provide Value When Buying/Selling a Home
Some say buyer’s agents are expensive door openers and listing agents just throw a property on the MLS, put a sign in the yard and hope for the best. Just as with any field there are those whose contribution is not like others in the field. That is why ethics review boards for attorneys, doctors, accountants and real estate agents are always busy. But that does not mean the entire real estate profession is not useful.
The benefit from working with professional real estate agents comes from their network of other professionals they work with (mortgage lenders, home inspectors, contractors and more) and with their knowledge they bring to a transaction. Whether representing the buyer or the seller the experienced real estate agent needs to know the ins and outs of the transaction. From making sure timeframes are kept on track, negotiating on behalf of their client, to making sure someone is around to open the door for a contractor to evaluate and issue when no one else is available.
Myth: Owning a House Only Involves Paying the Mortgage
This myth is a dangerous one in that it can cause home buyers to only focus on the monthly mortgage payment. If the homeowner pays their taxes and insurance with escrow, then that number is sometimes not considered when looking at the principal and interest payment of the mortgage. Taxes and insurance are on top of the principal and interest payment and are variable, meaning they can and do change during the life of the mortgage (see below for more details).
If all the homeowner ever pays is the monthly mortgage payment (including escrow) and does not budget for any other home expenses they will be in for a big shock when home repairs pop up. Small home repairs such as squeaky doors, dripping faucets, and more can be taken care of at a relatively modest cost. Other things like HVAC repairs/replacement, roof replacement, major plumbing issues. replacing one or more windows can really add up. Not having saved up for such expenses can leave a homeowner with a big hole in their budget and/or expensive debt to cover those repairs.
Myth: The Mortgage Payment Never Changes
To be fair this can be true if the homeowner has a thirty-year fixed mortgage and does not consider the taxes and insurance in the mortgage payment. When adding in the taxes and insurance <a href="https://www.cincinkyrealestate.com/blog/mortgage-payment-changes/">the mortgage payment can change on a year-to-year basis</a>. Recently insurance rates have been going up due to inflation and that gets factored into many mortgage payments that include escrow payments. As home values have risen so have tax assessments, which again means a higher monthly payment going to the lender.
While not as common these days the variable rate mortgage also means the potential for the mortgage payment to change. As rates go up and the lock period on the variable rate mortgage opens, the payment can go up as well. In general, one should never count on having a mortgage payment remain the same.
Myth: Home Values Only Go Up
Maybe over a long-time scale and looking at large markets this could be true. But when looking at individual homes and individual markets, home values don’t always go up. Take a look at any neighborhood and look for that run down abandoned house. If the<img src="https://assets.site-static.com/userfiles/584/image/house_on_papers.jpg" width="400" height="267" alt="house on papers" style="float: right;" /> inside of the house is uninhabitable <a href="https://www.cincinkyrealestate.com/blog/dealing-with-mold-when-selling-a-home/">due to mold</a>, water damage, animal infestation or more the value of that home is not going up.
Homeowners who defer maintenance or don’t update the home when other homes in the neighborhood are well kept and updated will not have its value go up relative to those other homes. Depending on the price paid when the home was purchased it could even be worth less. If a local market loses a major employer resulting in net migration away from that market, the homes in that market will go down in value due to lack of demand.
Myth: A Home is an Investment
<a href="https://www.cnbc.com/2019/04/18/wealth-manager-buying-a-home-is-usually-a-terrible-investment.html">A home should not be considered an investment</a>. If the homeowner does not make updates, lets some maintenance issues go the home can quickly turn into a money pit. External factors such as a major employer leaving an area can also impact the home value negatively and through no effort of the homeowner at all.
Especially in today’s mortgage interest rate environment when paying an interest rate of seven percent the homeowner is paying more in interest than the original value of the home upon purchase over the life of the loan. So for example a $400,000 home with a seven percent mortgage interest rate will pay $446,428.47 in interest over the life of the mortgage. Investments should not cost more money than the original purchase price. With the way mortgages work the interest is front loaded as well on the amortization schedule which means more interest is being paid in the early time of the mortgage so even if one were to sell prior to the 30 years a lot of interest is being paid on that loan. With a high interest rate, home price appreciation might be the only way a home turns into a positive “investment” and that does not even factor in the cost to insure, maintain, and update a home.
Final Thoughts
Falling for some of these common myths can lead to long term financial struggles and buyer’s remorse. Sellers too can get caught up on the wrong end of these myths and leave money on the table. Knowing the truth can help real estate buyers and sellers keep achieve their goals successfully.
Additional Resources
<a href="https://www.maxrealestateexposure.com/mortgage-pre-approval-vs-pre-qualification-letter/" target="_blank">Guide For Getting a Mortgage Pre-Approval </a>- Mortgage pre-approvals should not be considered optional as shopping for a home without one can lead to big disaapointment. Learn about the mortgage pre-approval process and how to get pre-approved for a mortgage.
<a href="https://www.realestatemortgageblog.com/home-buyers/use-realtor-to-buy-house/" target="_blank">Use a Realtor When Buying a Home?</a> - Sometimes homebuyers think by going directly to the listing agent they can can a better deal and save some money. Usually the opoosite happens as the listing agent either represents the seller or has to step back and represent both parties equally which usually means no full representation for anyone.
<a href="https://brotherlyloveproperties.com/sell-house-with-bad-roof/" target="_blank">Selling a Home With a Bad Roof </a>- While not ideal a home with a bad roof can still be put on the market for sale and will get buyers ready to make an offer. The important thing though is to price and market it right otherwise no one will be interested.
The above article “Common Real Estate Myths” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Real_Estate_Myth_PIN_copy.jpg" width="1000" height="1500" alt="Common Real Estate Myths for pinning" />2023-12-07T05:00:00-07:002023-12-06T16:08:11-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:13103Great Local Cincinnati Charities To Know About For #GivingTuesday<img src="https://assets.site-static.com/userfiles/584/image/Giving_Tuesday_copy.png" width="535" height="635" alt="giving tuesday cincinnati charities to consider" style="display: block; margin-left: auto; margin-right: auto;" />
Local Greater Cincinnati Charities To Know About For #GivingTuesday
After Thanksgiving comes Black Friday, Small Business Saturday and then Cyber Monday. Black Friday, Small Business Saturday and Cyber Monday are all about buying something at a discount or buying local in anticipation of the upcoming holidays of Christmas, Hanukah, Kwanza, Festivus and more. Another day for consideration is <a href="https://www.givingtuesday.org/">#GivingTuesday</a>. With #GivingTuesday the idea is to contribute some money to a charity of your choosing so those who are in need can benefit as well from the holiday season. Being a personal fan of local charities I have compiled a number of local charities in this article. These charities operate in both the Greater Cincinnati, Ohio area and Northern Kentucky areas. Take a look at the great things these local charities are doing and consider donating to them or becoming a volunteer.
La Soupe
<a href="https://www.lasoupecincinnati.com/our-story/" target="_blank">La Soupe</a> located at 4150 Round Bottom Road Cincinnati, OH 45244 and helps people get nutritious meals. Founded in 2014 by Chef Suzy DeYoung the goal of La Soupe is to repurpose excess food (that would otherwise be thrown out) to create tasty and nutritious soups and meals for those in need. Currently La Soupe rescues approximately 5000 pounds of food per week and with that is able to feed 2000 children in and around the Cincinnati area. La Soupe recently sent 23,000 pounds of food to assist with hurricane recovery efforts in Houston, Texas.
Not only does La Soupe give soup to those in need they also sell their soups to anyone wanting to buy their delicious soups. So in case you want to make a donation in person be sure to also buy some of their delicious soups as you won’t regret it. Check them out on <a href="https://www.facebook.com/lasoupecincinnati/" target="_blank">Facebook</a> and <a href="https://twitter.com/LaSoupeCincy" target="_blank">Twitter</a>.
Freestore Foodbank
<a href="http://freestorefoodbank.org/about/">The Freestore Foodbank</a> serves the Ohio, Kentucky and Indiana tri-state area by providing meals to those in need along with the help of over 400 local community partner agencies. Annually the Freestore Food Bank serves over 24 million meals! When Frank Gerson the founder of Freestore Foodbank saw the amount of good usable items were being thrown away at a local incinerator he worked at he decided to make a change. As a result Frank quit his job and founded the Free Store in 1971 where he gave to those in need. Eventually the Free Store morphed into the Freestore Foodbank.
In addition to providing meals for those in need the Freestore Foodbank provides many other services such as free tax preparation assistance, jobs training programs, clothing assistance, housing assistance and more. The Freestore Foodbank also has a Payee program that allows tenants in and around the Greater Cincinnati area to have their government assistance payments collected and directed to their primary need of housing so that there is less chance for people to get evicted from their housing. Check them out on <a href="https://www.facebook.com/FreestoreFoodbank/" target="_blank">Facebook</a>, <a href="https://www.instagram.com/freestorefb/" target="_blank">Instagram</a> and <a href="https://twitter.com/FreestoreFB" target="_blank">Twitter</a>.
Holly Hill Child & Family Solutions
Chartered as a home for orphaned children in 1884 by the Kentucky General Assembly <a href="http://hollyhill-ky.org/site/who-we-are/history/">Holly Hill Child & Family Solutions</a> eventually changed its mission over time to one of helping children in Northern Kentucky who suffer from emotional or behavioral problems (often caused by abuse). Holly Hill provides a number of different programs including therapy services, residential treatment for girls, promotion of life skills and more. As of 2016 Holly Hill has been providing services to 2,248 children and families in the Northern Kentucky area. Check them out on <a href="https://www.facebook.com/HollyHillChildFamilySolutions/" target="_blank">Facebook</a> and <a href="https://www.instagram.com/hollyhill_ky/" target="_blank">Instagram</a>.<img src="https://assets.site-static.com/userfiles/584/image/donate_button.jpg" width="400" height="235" alt="donate button on keyboard" style="float: right;" />
Stepping Stones
<a href="https://steppingstonesohio.org/about/" target="_blank">Stepping Stones</a> was started by parents who were not able to find summer camp opportunities for their child with special needs. Their first summer camp for children was in 1963 and from then they have expanded greatly providing services to special needs children, teens, adults and their family members. Stepping Stones provides year round programs teaching life skills, social activities and more. Check them out on <a href="https://www.facebook.com/SteppingStonesOhio/" target="_blank">Facebook</a> and <a href="https://www.instagram.com/steppingstonesohio/" target="_blank">Instagram</a>.
Cincinnati Area Senior Services
<a href="http://cassdelivers.org/">Cincinnati Area Senior Services</a> assists senior citizens living in the Greater Cincinnati area by providing transportation, meals, guardianship assistance, financial management assistance and more. By providing transportation services to senior citizens they are able to live in their current home and still make it to medical appointments, go to the grocery store, go to social outings and more. Their Meals-On-Wheels services ensure senior citizens are getting nutritious meals and Cincinnati Area Senior Services is one of the largest Meals-On-Wheels provider in the area. Their financial management assistance services ensures senior citizens are able to take care of their finances and can help prevent fraud committed against seniors. Check them out on <a href="https://www.facebook.com/CincinnatiAreaSeniorServices/" target="_blank">Facebook</a>.
Greater Cincinnati SCORE
<a href="https://greatercincinnati.score.org" target="_blank">Greater Cincinnati SCORE</a> is an organization dedicated to helping small business and those with small business ideas start up and succeed in their endeavors. While SCORE stands for Service Corps Of Retired Executives there are both retired and non-retired individuals helping as small business mentors. SCORE is a 501(c)(3) non profit organization which is assisted in accomplishing its mission through the Small Business Administration. SCORE provides marketing, finance, legal, HR, networking and many more areas of support to small business by assigning them with their own mentor. Check them out on <a href="https://www.facebook.com/SCOREcincinnati/">Facebook</a> and <a href="https://twitter.com/CincinnatiSCORE" target="_blank">Twitter</a>.
Melodic Connections
<a href="http://melodicconnections.org/about/">Melodic Connections</a> is a music therapy studio helping individuals of all ages learn music. Founded by Betsy Zenk Nuseibeh in 2008, Melodic Connections helps individuals seek out their musical talent with instruction tailored towards an individual’s specific needs. Melodic Connection’s mission is to “prepare our students for the community and prepare the community for our students”. Musical training is offered in local schools, through summer camps, afternoon classes, adult specific programs and more. Check<img src="https://assets.site-static.com/userfiles/584/image/teacher_with_students.jpg" width="400" height="267" alt="teacher with students" style="float: right;" /> them out on <a href="https://www.facebook.com/MelodicConnections/" target="_blank">Facebook</a> and <a href="https://www.instagram.com/melodicconnections/" target="_blank">Instagram</a>.
Milford Miami Ministry
<a href="http://mmministry.org/about.html">Milford Miami Ministry</a> consists of a number of churches in and around the Milford, Ohio and Miami Township, Ohio areas that provide food and financial assistance to those in the community who have need. Started in 1996 out of the Camp Dennison United Methodist Church the service expanded later on to operate as a standalone organization. Milford Miami Ministry provides food to over 150 families a month as well as provides financial aid for rent and utilities to more than 300 families annually. Check them out on <a href="https://www.facebook.com/MilfordMiamiMinistry/" target="_blank">Facebook</a>.
SEM Food Pantry
The <a href="https://www.semfoodpantry.org" target="_blank">SEM Food Pantry</a> provides a somewhat different option for those who are facing food insecurity. Rather than handing out pre-packaged food the SEM Pantry allows people in need to come and select the foods that they need similar to a grocery store. SEM also provides assistance for those needing help for benefits they may qualify for through the Ohio Benefits Bank.
Reach Out Lakota
Started in 1992 <a href="https://www.reachoutlakota.org/about/">Reach Out Lakota</a> was established to help those in need in West Chester, Ohio and Liberty Township, Ohio. Reach Out Lakota provides food, clothing assistance, and back to school supplies. The organization is 100% community funded and serves over 2,500 families annually. Check them out on <a href="https://www.facebook.com/ROLakota/" target="_blank">Facebook</a>.
Final Thoughts
All of these charities not only accept monetary donations, which you should consider giving as part of #GivingTuesday, but also need the help of volunteers to help make their programs work. So there is more than one way to give on #GivingTuesday as volunteering to help these and other great organizations can be of tremendous value. Want to add some more great local Cincinnati and Northern Kentucky charities to the list? Put them in the comments below.
About the author: The above article “Great Local Cincinnati Charities To Know About For #GivingTuesday” was provided by Luxury Real Estate Specialist Paul Sian. Paul can be reached at <a href="mailto:paul@cincinkyrealestate.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/sellers/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/buyers/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I work in the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, Fort Thomas, Hebron, Hyde Park, <a href="https://www.cincinkyrealestate.com/indian-hill/" target="_blank">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, Norwood, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/" target="_blank">Terrace Park</a>, Union Township, and Villa Hills.2023-11-28T05:00:00-07:002023-11-26T15:41:50-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21844How Long Does It Take To Sell A Home?<img src="https://assets.site-static.com/userfiles/584/image/How_Long_Sell.jpg" width="535" height="635" alt="how long sell" title="How Long Does It Take To Sell A Home" style="display: block; margin-left: auto; margin-right: auto;" />
How Long Does It Take To Sell A Home?
From start to finish a home can take a number of months to be sold. By being sold it is meant what happens at the closing table when the seller transfers ownership of the home to the new buyers. Depending on when the homeowners decide to get their home ready for sale there are several tasks a homeowner should perform to make sure they get the best value for their home when listed for sale. This article explores the time involved and how long it takes for a home to get sold.
Prior to Listing the Home for Sale
Unless a home is in perfect condition, prior to listing a home for sale the homeowner needs to be cleaning up the house, refreshing certain aspects and making needed repairs. If the carpet and paint is old, dated, and/or worn it is best to put up fresh paint and replace the carpet with new neutral color carpet. Old broken appliances should be replaced. Any deferred maintenance issues should be fixed prior to listing the home for sale. Basically, anything that a buyer is going to look at and think twice about making an offer due to the condition should be fixed.
Depending on contractor availability and time of year these types of updates can take a couple of months or more. Especially outdoor updates, repairs can’t be done if the weather outside won’t permit it (snow and freezing temperatures are a perfect example). In a hot housing market, the quality contractors can be booked out months in advance, so proper planning is important. If a homeowner knows they want to sell at a particular time, getting everything evaluated six to eight months prior is key. Trying to get work done at the last minute can lead to shoddy work or expensive pricing which may delay the sales time even further.<img src="https://assets.site-static.com/userfiles/584/image/Locked_Cash_Reduce.jpg" width="400" height="600" alt="locked cash" title="locked cash" style="float: right;" />
A home in perfect or near perfect condition does not need much time prior to getting listed for sale. Of course a home that does need updates does not necessarily need to have those updates and repairs done. The <a href="https://www.cincinkyrealestate.com/blog/selling-home-as-is/">homeowner can choose to sell the home in as-is condition</a> and price it accordingly. At the right price there will always be a buyer ready to make an offer as discussed further below.
Home Pricing is Critical
This bears repeating here as it has been mentioned many times in other articles and videos. <a href="https://www.cincinkyrealestate.com/blog/price-my-luxury-home-for-sale/">Pricing a home correctly</a> is important to get a home sold in the fastest time possible. Price a home too high and it will take much longer to sell that home. On the other side, pricing the home extremely low will ensure the homeowner gets an offer within the first day of being on the market. The market being the key factor in determining where the price of a home makes sense. In a crazy market where many buyers were jumping over each other to see a home and put in an offer pricing high would work so long as that price was reasonable. Pricing a $300,000 home for $1,000,000 when listing for sale is not reasonable and will not bring any buyers wanting to make an offer. Pricing that same $300,000 home at $320,000 might make sense in a seller’s market where there are few other homes for sale and many buyers in search of buying a home.
A home priced correctly according to local market trends which take into account recent home sales, current mortgage rates, and overall economic conditions should be on the market for no more than thirty to sixty days. Thirty days being a more ideal time frame as the longer a home sits on the market the more stigma associated with that home as having some sort of problem is the reason that no one has bought it yet at the current price. Regardless of market conditions and mortgage rates there will always be a buyer of a home at the right price. If no offers are coming in, then the homeowners need to consider reducing the price of the home.
Once an Offer is Accepted
Once the buyer and seller have agreed on a price and other terms and conditions it can take thirty to sixty days for the buyer to close on the home and take ownership at the closing table. Typically the buyer will need at least thirty days especially when they are purchasing a home with a mortgage and performing the usual inspections. Sometimes cash buyers can close a little quicker and the investor cash buyer even faster if they are comfortable with a very initial cursory inspection.
With a mortgage based offer the buyer will usually want a full home inspection, will need to get the home appraised by a licensed appraiser, check on insurance rates and more. <a href="https://www.cincinkyrealestate.com/blog/negotiating-post-inspection-repairs/">After the home inspection the buyer may want to negotiate repairs</a> and/or a price reduction depending on the results of the inspection report. The inspection process can take seven to fourteen days depending <img src="https://assets.site-static.com/userfiles/584/image/appraisal_type_pic.jpg" width="400" height="300" alt="appraisal" title="appraisal" style="float: right;" />on the terms of the contract. The appraisal has its own timeline and usually cannot be controlled by the buyer or the lender but typically can get done within seven to fifteen days once initially ordered.
Things That Can Derail the Timeline
Looking at the period after an offer has been signed by both the buyer and seller, there are things that can slow the process down. If major inspection issues come up, that alone can stop a deal dead in its tracks. The buyer may need more time to have different specialists perform their inspections such as foundation inspections, HVAC inspections, plumbing inspections and more. Both the seller and the buyer need to agree to any additional time needed for inspections. If no agreement can be reached, then the <a href="https://www.cincinkyrealestate.com/blog/timelines-when-buying-or-selling-a-home/">timeline written in the purchase agreement</a> is what will be used.
Things like the appraiser being backed up and unable to get to the home in time can also cause delays. If a mortgage loan requires an appraisal and one cannot be obtained before the closing date, then more time will be needed for the buyer to have the process completed. Sometimes the mortgage lender can also delay things up until the buyer gets a final clear to close. The buyer needs to do their part too by providing all the paperwork and information the lender requires of them.
Bottom Line: So How Long Does it Take to Sell a Home?
Pre-listing time can be anywhere from six to eight months if the homeowner wants to get the home in tip top shape for maximum selling potential. Pricing the home is critical and will control how long the home stays on the market once initially listed on the market, price too high and the time to sell will be a long one. Once an offer has been accepted it can take anywhere from thirty to sixty days to get to the closing table where the ownership will transfer to the buyer.
Additional Resources
<a href="https://www.maxrealestateexposure.com/cma-real-estate/" target="_blank">How Does a Real Estate Agent Come Up With Home Pricing?</a> - The Comparative Market Analysis also known as CMA or Comp is what a real estate agent prepares in order to give a homeowner the best idea on where their home should be priced. Learn how they are prepared and what it consists of in this article.
<a href="https://www.madisonmortgageguys.com/home-inspection-vs-appraisal/" target="_blank">Home Inspection vs. Home Appraisa</a>l - Both the inspection involve some sort of physical look at a home in order to determine condition and value. Learn about the differences between the two and when one or both are needed.
<a href="https://merrimackvalleymarealestate.com/real-estate-photography-sells-homes/" target="_blank">Real Estate Photography and Selling a Home</a> - With more than 90% of home shoppers starting online having great photos of a home for sale is important. Getting the home picure perfect as well is also talked about in the article.
The above article “How Long Does It Take To Sell A Home?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/How_Long_Sell_PIN.jpg" width="1000" height="1500" alt="How Long Does It Take To Sell A Home" title="How Long Does It Take To Sell A Home" />2023-11-16T05:00:00-07:002023-11-15T11:47:07-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21738How To Maintain A Sewage Ejector System In Your House<img src="https://assets.site-static.com/userfiles/584/image/Sewage_Ejector.jpg" width="535" height="635" alt="How To Maintain A Sewage Ejector System" style="display: block; margin-left: auto; margin-right: auto;" />
How To Maintain A Sewage Ejector System In Your House
Some houses due to placement need a sewage ejector system in order to take the household wastewater and pump it to the sewage line outside of the house. A sewage ejector system may be needed for part of the house that is below the sewer line such as a basement or the entire house may be built with a sewage ejector system at the lowest point of the house. Proper maintenance and use of the sewage ejector system is a must in order to avoid a dirty backup of sewage in the basement. In this article learn about the key components of a sewage ejector system, how to make sure the sewage ejector system runs properly and maintenance tips.
Sewage Ejector System
The sewage ejector system consists of several components. There will be a sewage basin where all the wastewater is collected until pumped to the outside sewage line, a sewage ejector pump or sewage grinder pump (sometimes two pumps with one serving as a backup), and a high-water alarm. There are also <a href="https://www.cincinkyrealestate.com/blog/common-home-problems/">various piping</a> for draining wastewater into the sewage basin as well as pipes connected to the sewer line and a vent line pipe.
A standard sewage ejector pump is designed to pump out sewage and can handle a certain size of solids to be pumped out of the basin. These pumps are submersed in the wastewater and when the wastewater level reaches a certain level a float sensor is triggered causing the motor to power on and pump the waste out of the basic. These sewage ejector pumps usually only run when the wastewater is at a certain level and should not be running continuously. If a homeowner hears their pump running continuously, they should immediately monitor the operation as that motor could eventually burn out and leave them with a <img src="https://assets.site-static.com/userfiles/584/image/Water_Damage_Small.jpg" width="400" height="225" alt="water damage" style="float: right;" />situation where they can’t use the toilets, showers and sinks in the house until the sewage pump is repaired or replaced.
Most homes use sewage ejector pumps and not sewage grinder pumps. A sewage grinder pump will have a pump with blades that helps to grind up the sewage which makes it easier to discharge into the main sewer line. Typically, you will see the sewage grinder pump in a commercial setting (like a restaurant, industrial or some other business). Sewage grinder pumps not only cost more but need maintenance more frequently since the grinder part of the pump is often time a blade of some sort that needs replacing with regular frequency.
Sewage Ejector System Problem Areas
Putting the wrong things down the drain can cause sewage ejector problems and premature motor burnout. Typical sewage ejector pumps can handle up to 2 inch solids. Putting in things like feminine hygiene products, prophylactics, kid toys, paper towels and more in the drain will cause problems for the sewage ejector. Especially in a home where there is only one sewage ejector pump when that pump goes down the entire household use of toilets, showers and sinks can also shutdown. So it is important to not dispose of things that can cause problems with the sewage ejector motor.
It is better to throw away (or compost) household food waste. Yes, the kitchen may have a food disposer in the kitchen sink, but too much food waste can build up in the sewage basin causing future problems. Also things like cooking grease and oils should not be disposed in the drain as well as it can cause problems with the sewage pump ejector motor and/or the sewage basin.
Sometimes in order to quickly install or <a href="https://www.cincinkyrealestate.com/blog/negotiating-post-inspection-repairs/">repair</a> a sewage ejector system a homeowner or handy person will use rubber flex couplings to connect the sewage ejection pipe with the outflow line. It will work but over time that rubber flex coupling can give way and result in sewage waste being sprayed into the basement. The sewage waste ejector motor must be strong enough to pump waste to a certain level. With rubber flex couplings connecting two up flow pipes that coupling is put under a good amount of pressure and due to being flexible allows the movement out of place from its original setting. Instead a homeowner should pay a plumber to have them install PVC coupling between the transition pipes on their system to prevent accidental sewage discharge in the basement.
Sewage Ejector System Maintenance
While many plumbers can install sewage ejection systems not all of them offer much in terms of maintenance services. Call around to different plumbers proactively and ask them have they worked on sewage ejector systems in the past and do they offer regular sewage ejection system maintenance. If the system has a true sewage grinder then the grinding mechanism will need to be changed on a regular basis to make sure sewage is being ground up before being sent to the sewer line.
In poorly maintained or poorly treated sewage ejector systems solid waste may build up at the bottom of the basic causing problems with the pumps ability to pump wastewater out of the basin. In that case a septic company should be contacted to clean out the basin to make sure the pumps are not obstructed. The homeowner should know when the pump(s) were installed and <img src="https://assets.site-static.com/userfiles/584/image/Locked_Cash_Reduce.jpg" width="400" height="600" alt="money locked" style="float: right;" />what is the life span of the pump in their system. As the pump gets closer to its end of life the homeowner can proactively replace the pump so the system can run without any hiccups.
The <a href="https://www.cincinkyrealestate.com/blog/important-things-to-maintain-in-a-house/">homeowner should be monitoring the pump on their own on a periodic schedule</a>. The homeowner should check for leaks, check for odors that should not be there, check to make sure the pump is not running continuously. They should also make sure the electrical circuits feeding the pump is running without issue. Anytime a potential issue is noted the system should be checked out by a professional before the system gets to the point where it cannot be used.
Final Thoughts
A sewage ejection system can run for a number of years without incident providing it is properly setup and monitored. Using the right parts and properly sized motor will ensure the sewage ejection system operates when it needs to. Proactive maintenance will help ensure stinky problems are avoided.
Additional Resources
<a href="https://www.maxrealestateexposure.com/septic-tank-pumping/" target="_blank">Septic Tank Pumping</a> - While a septic system is a little different than a sewage ejector pit the need for maintenance is still there. A dirty clogged sewage ejector system can cause a mess and sometimes it needs to be pump if the motors are not operating properly.
<a href="https://www.myseattlehomesearch.com/blog/dont-skip-the-sewer-inspection-when-buying-a-home/">Don't Skip Sewer Line Inspections When Buying a Home</a> - A home inspection can save you a lot of money when buying a home. Adding to that a sewer/sewage ejector pit inspection can also save money down the road by making sure the sewer line runs great.
<a href="https://www.thespruce.com/sewage-ejector-pump-2718941" target="_blank">How Sewage Ejector Pumps Work</a> - If you have a sewage ejector in your home it makes sense to understand what it is and how it works.
The above article “How To Maintain A Sewage Ejector System In Your House” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Sewage_Ejector_PIN2.jpg" width="1000" height="1500" alt="sewage ejector maintenance pin" />2023-10-26T04:00:00-07:002023-10-25T16:41:52-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21630How To Maintain A Septic System<img src="https://assets.site-static.com/userfiles/584/image/Maintain_Septic.jpg" width="535" height="635" alt="How To Maintain A Septic System" style="display: block; margin-left: auto; margin-right: auto;" />
Tips For Maintaining your Septic System
<a href="https://www.cincinkyrealestate.com/blog/buying-a-home-with-a-septic-system/">Maintaining a septic system</a> is essential for its longevity and to prevent potential issues and public health/environmental impacts. We will provide a comprehensive guide on septic system maintenance.
It covers topics such as understanding its importance, how systems work, essential maintenance tips, effective management strategies, troubleshooting common problems, prolonging system lifespan, and educating others.
<a href="https://www.maxrealestateexposure.com/septic-tank-pumping/" target="_blank">Regularly pumping a septic tank</a> is the most vital part of system maintenance. From experience as a Realtor over many years, many homeowners don't realize the importance of proper care. We will aim to change that.
Understanding the Importance of Septic System Maintenance
Maintaining a septic system is essential for the long-term functionality and protection of human health and the environment. By properly caring for your septic system, you can prevent potential hazards and ensure its efficient operation.
The Impact of Proper Septic System Care on Health and the Environment
Proper septic system care plays a significant role in safeguarding public health. When septic systems are not well-maintained, untreated sewage may contaminate nearby groundwater or surface water sources.
This contamination can pose serious health risks, such as waterborne diseases and pollution of drinking water supplies. By prioritizing regular maintenance and inspections, you can prevent these potential health hazards and protect the well-being of your community.
Environmental Guidelines and Regulations for Septic System Maintenance
<a href="https://www.cincinkyrealestate.com/blog/what-sorts-of-environmental-issues-can-affect-real-estate/">Environmental agencies</a> and local health departments have established guidelines and regulations to ensure septic systems' proper functioning and maintenance.
These regulations typically include requirements for regular inspections, periodic pumping, and adherence to specific installation and maintenance procedures.
Compliance with these guidelines helps to mitigate environmental contamination risks and promotes sustainable wastewater<img src="https://assets.site-static.com/userfiles/584/image/Draining_bucket.jpg" width="400" height="600" alt="leaking" style="float: right;" /> management.
Common Myths and Misconceptions about Septic Systems
Several common myths and misconceptions surrounding septic systems can hinder proper maintenance. Some of these misconceptions include believing that septic tanks never require pumping or that additives can replace routine maintenance.
It is important to dispel these myths and educate homeowners on the best practices for septic system care. By understanding the truth behind these misconceptions, you can make informed decisions and ensure the longevity of your septic system.
In conclusion, understanding the importance of septic system maintenance is crucial for protecting public health and the environment.
By recognizing the impact of proper care, adhering to environmental guidelines, and debunking common myths, homeowners can take proactive steps to maintain their septic systems effectively.
How Septic Systems Work and Key Components
Understanding how septic systems work and their key components is essential for proper maintenance and longevity. We will provide an overview of a typical septic system structure, explain the role of tanks, lines, and drain fields, and emphasize the importance of regular inspections and pumping.
Overview of a Typical Septic System Structure
A typical septic system consists of three main components: a tank, distribution lines, and a drainfield. The septic tank is a large underground container that collects and separates solid waste from wastewater. As wastewater flows into the tank, solids settle to the bottom, forming sludge, while oils and lighter materials float to the top, creating scum.
The liquid wastewater, known as effluent, exits the tank through the outlet pipe and enters the distribution lines.
Understanding the Role of Tanks, Lines, and Leach Fields
The septic tank serves as the primary treatment unit, where bacteria and natural processes break down the organic matter in the wastewater. The effluent then travels through a network of distribution lines known as absorption lines or leach lines, which are perforated pipes buried in the soil.
These lines distribute the effluent evenly into the drain field, allowing it to percolate through the soil for further treatment and filtration before reaching groundwater.
The Importance of Regular Inspections and Pumping
<a href="https://www.cincinkyrealestate.com/blog/home-inspection-report/">Regular inspections</a> and pumping are crucial for maintaining a healthy septic system. Inspections involve examining the tank, lines and drain field to ensure they function correctly and identify any signs of damage or blockages. The first step in proper maintenance is<a href="http://blog.rismedia.com/2023/a-comprehensive-guide-for-locating-your-septic-tank/" target="_blank"> locating your septic system</a>.
It is recommended to have a professional inspection every three to five years, or more frequently, for older systems or if you notice any issues. From experience, I have seen many<a href="https://www.rismedia.com/2023/07/18/what-is-difference-between-septic-system-public-sewer/" target="_blank"> home buyers who have had public sewer</a> need help understanding the need to take care of their system.
Pumping involves removing accumulated sludge and scum from the septic tank. This process helps prevent overloading of the drainfield and extends the system's lifespan. It is generally recommended to pump the tank every three to five years, although frequency may vary depending on household size, water usage, and waste disposal practices.
By understanding how septic systems work and the role of their key components, homeowners can take proactive measures to maintain their systems effectively and prevent potential problems.
Essential Maintenance Tips for a Healthy Septic System
Proper maintenance is vital to ensure the longevity and functionality of your septic system. These essential tips can keep your system healthy and prevent costly repairs or failures.
Waste Management and Water Conservation Practices
Effective waste management and water conservation are vital aspects of septic system maintenance. Implementing the following practices can help minimize the strain on your septic system:
Avoid flushing non-biodegradable items or chemicals down the toilet or drains.
Dispose of household chemicals, medications, and hazardous waste through designated collection programs.
Use water-efficient fixtures and appliances to reduce water consumption.
Spread out water usage throughout the day to prevent overwhelming the system.
Care and Maintenance of Septic Tanks and Drain Fields
Regular care and maintenance of septic tanks and drainfields are crucial for optimal performance. Consider the following tips:
Schedule regular inspections by a professional to check for any signs of damage or blockages.
Ensure proper sludge and scum removal by scheduling routine septic tank pumping.
Avoid parking or placing heavy objects on the drainfield to prevent soil compaction.
Redirect excessive surface water away from the drain field to prevent oversaturation.
Best Practices to Prevent Septic System Failures
Preventing septic system failures is a top priority to avoid disruptions and costly repairs. Follow these best practices:
Be cautious about what goes into your septic system to avoid clogs or damage.
Avoid excessive water usage, especially during periods of heavy rainfall.
Do not plant trees or shrubs near the septic system components with aggressive root systems.
Keep accurate records of maintenance activities, inspections, and pumping schedules.
By implementing these essential maintenance tips for your septic system, you can ensure its proper functioning, prolong its lifespan and avoid unnecessary expenses.
Regular care and attention will help you maintain a healthy septic system and contribute to a cleaner environment.
Effective Strategies for Septic System Management
When managing your septic system, you can implement several effective strategies to ensure its proper functioning and longevity.
These strategies include managing landscaping and trees near septic systems, safely handling household chemicals and cleaning products, and practicing water conservation to improve efficiency.
Managing Landscaping and Trees near Septic Systems
<a href="https://www.cincinkyrealestate.com/blog/better-home-landscape/">Proper management of landscaping and trees</a> around your septic system is crucial to prevent potential damage to the system's components.
It's important to avoid planting deep-rooted trees or large shrubs near the system's drain field, as their roots can infiltrate and clog the drain lines. Instead, opt for shallow-rooted plants and maintain a significant distance between vegetation and the septic <img src="https://assets.site-static.com/userfiles/584/image/lawn_smaller.jpg" width="400" height="267" alt="lawn" style="float: right;" />system.
How to Safely Manage Household Chemicals and Cleaning Products
Using and disposing of household chemicals and cleaning products safely is essential to prevent harm to your septic system. Avoid pouring harsh chemicals, such as bleach or drain cleaners, down the drain, as they can disrupt the natural balance of bacteria within the septic tank.
Opt for environmentally friendly and septic-safe alternatives whenever possible. Also, properly dispose of medications, oils, and other hazardous substances at designated collection points to prevent septic system contamination.
Water Conservation and Septic System Efficiency
Conserving water plays a significant role in maintaining the efficiency of your septic system. Reduce water usage by fixing leaks promptly, installing low-flow fixtures, and practicing water-saving habits such as shorter showers and full laundry and dishes.
Minimizing water use helps prevent septic system overload and ensures that wastewater can be effectively treated and discharged.
By implementing these effective strategies for septic system management, you can reduce the risk of potential issues, prolong the lifespan of your septic system, and promote a healthier environment for you and your community.
The Role of Professional Services in Septic System Maintenance
Professional services are crucial in ensuring your septic system's proper maintenance and longevity. By engaging with experienced septic system service providers, homeowners can benefit from their expertise and specialized knowledge.
Let's explore the critical aspects related to professional services in septic system maintenance:
Choosing the Right Septic System Service Provider
When it comes to maintaining your septic system, selecting the right service provider is vital. Consider conducting thorough research and<a href="https://realtybiznews.com/septic-sytems-installers-near-you/98778805/" target="_blank"> choosing a reputable septic company</a> with a proven track record in system maintenance.
Look for certifications, licenses, and customer reviews to ensure their credibility and reliability. You can expect quality service and practical solutions by hiring professionals who understand your system's unique requirements.
Importance of Regular Inspections and Professional Maintenance
<a href="https://activerain.com/blogsview/5800385/what-does-a-septic-system-inspection-cover-" target="_blank">Regular inspections and professional maintenance</a> are essential to keep your septic system functioning optimally.
Professional technicians possess the knowledge and equipment to identify any potential issues or signs of wear and tear. They can comprehensively assess your septic system, including tanks, lines, drainfields, and other components.
By scheduling routine inspections and maintenance, you can catch problems early on and prevent costly repairs or system failures.<a href="https://massrealestatenews.com/cost-septic-tank-pumping/"> Septic tank pumping costs are minor</a> compared to the system replacement cost from neglect.
Understanding Costs and Factors for System Repairs and Replacements
Knowing the costs and factors involved in septic system repairs and replacements is essential for a homeowner. Professional service providers can offer detailed information on the potential expenses and help you understand the variables that can influence them.
They can provide accurate estimates based on the specific needs of your septic system, such as repairs to tanks, drainfields, or the overall system replacement.
By clearly understanding the costs involved, you can make informed decisions and plan accordingly for the maintenance of your septic system.
Troubleshooting Common Issues and Problems
In maintaining a septic system, it is essential to troubleshoot and address common issues and problems that may arise. Identifying and resolving these issues promptly can help ensure your system's optimal functioning.
We will cover some of the most common problems and guide how to deal with them effectively.
Addressing Septic System Odors and Backups
One of the most noticeable signs of a septic system problem is the presence of foul odors or backups in your plumbing fixtures.
Various factors, including clogs, excessive solid buildup, or a malfunctioning septic tank, can cause these issues. To address septic system odors and backups:
Inspect your plumbing fixtures and drains to locate the source of the odor or backup.
Check for visible signs of leakage or blockage in the septic tank or drain field.
If the issue is limited to a specific fixture, such as a toilet or sink, use a plunger or drain snake to try and remove any clogs.
Consider scheduling a professional inspection and pumping if the problem persists or you suspect a more significant issue.
Dealing with Drainfield Flooding and Drainage Problems
A flooded or poorly draining drain field can indicate an underlying issue with your septic system. Excess water in the leach field can lead to system failure and contaminating surrounding soil and water sources. To address drain field flooding and drainage problems:
Inspect the drain field for signs of pooling water, soggy soil, or overly lush vegetation.
Redirect any surface water away from the drain field by ensuring proper grading and installing gutters and downspouts.
Limit water usage in the household to reduce the load on the septic system.
Contact a professional to assess the leach field and recommend appropriate solutions, such as aerating the soil or installing additional drainage measures.
Troubleshooting Clogged Lines and Slow Draining Fixtures
Clogged lines and slow-draining fixtures can indicate a blockage in your septic system. This can occur due to the accumulation of solid waste, grease buildup, or tree root intrusion. To troubleshoot clogged lines and slow-draining fixtures:
Start using a plunger or drain snake to clear the blockage in the affected fixture.
Avoid using chemical drain cleaners as they harm the septic system and the environment.
If the issue persists or affects multiple fixtures, it may indicate a more significant problem within the septic system. Consider seeking professional assistance to locate and resolve the blockage safely.
Regular maintenance, such as pumping the septic tank and practicing proper waste disposal, can help prevent future clogs and keep your system running smoothly.
Long-Term Strategies to Prolong Septic System Lifespan
Understanding the Life Expectancy of Septic Systems
Knowing the average life expectancy of septic systems is essential for effective long-term planning. While individual factors, such as maintenance practices and soil conditions, can influence lifespan, a well-maintained septic system can last several decades.
On average, a septic system can be expected to operate effectively for 25 to 30 years.
Tips for Extending the Lifespan of Your Septic System
As professionals recommend, maintain a regular pumping schedule based on household size and usage. Typically, septic tanks should be pumped every 3 to 5 years.
Avoid excessive water usage to prevent overloading the system. Use water-efficient appliances and fixtures, fix leaks promptly, and spread out laundry and dishwashing loads.
Be mindful of what goes down the drain. Avoid flushing non-biodegradable items, chemicals, grease, and excessive solids. Use septic-friendly toilet paper and minimize the use of harsh cleaning products.
Avoid planting trees or large shrubs near the septic system's components. The roots can penetrate the pipes and disrupt the system's functioning.
Implement water conservation practices in your daily routine. Minimize water usage during peak times and consider installing low-flow fixtures to reduce strain on the septic system.
Planning for Future Upgrades and Replacements
While proactive maintenance can significantly extend the lifespan of your septic system, it's essential to consider future upgrades and replacements. As your system ages, it may become less efficient or inadequate for your household's needs.
Consulting with septic system professionals can help you assess when to upgrade or replace your system.
Start planning for future investments to avoid unexpected emergencies and costly repairs. Understanding the costs involved, acquiring necessary permits, and researching modern septic system technologies can help you make informed decisions for the long-term sustainability of your septic system.
Final Thoughts
Never underestimate the importance of septic system maintenance. Your system's life should reach its maximum potential by following our tips. If you have any questions, feel free to reach out for assistance.
Additional Resources
<a href="https://springshomes.com/blog/dont-forget-the-septic-inspection-when-buying-a-house/" target="_blank">Get a Separate Inspection for the Septic System When Buying a Home</a> - The septic system is a critical part of a home and making sure it is fully operational and not in need of immediate repair is an important step home buyers should take before closing on a home.
<a href="https://www.rochesterrealestateblog.com/pumping-a-septic-tank/" target="_blank">Septic Tank Pumping Tips</a> - Regular pumping is needed to ensure a healthy septic system. Learn about some tips to make sure the pumping is done right.
The above article “How To Maintain A Septic System” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Maintain_Septic_PIN.jpg" width="1000" height="1500" alt="How To Maintain A Septic System" />2023-10-05T04:00:00-07:002023-10-05T06:01:26-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21603How to Bury a St. Joseph Statue to Sell Your House<img src="https://assets.site-static.com/userfiles/584/image/Sell_House_St_Joe.jpg" width="535" height="635" alt="How to Bury a St. Joseph Statue to Sell Your House" style="display: block; margin-left: auto; margin-right: auto;" />
How to Bury a St. Joseph Statue For Selling Your Cincinnati Property
<a href="https://www.cincinkyrealestate.com/blog/science-selling-home/">Selling a house can be challenging and stressful</a>, especially if your property has been on the market for an extended period without any interest from potential buyers. In such situations, some homeowners use unconventional methods to improve their luck.
One such practice is burying a St. Joseph statue, a centuries-old tradition believed to bring assistance in selling a home. This comprehensive guide will explore the steps involved in this tradition.
Maximum Real Estate Exposure has written extensively on <a href="https://www.maxrealestateexposure.com/st-joseph-statue/" target="_blank">burying a St. Joseph statue for house selling</a>. After reading their helpful resource, sharing these tips with Kentucky and Cincinnati homeowners seemed like a great idea.
What is the St. Joseph Statue Tradition?
The St. Joseph statue tradition is rooted in Catholicism and is based on the belief that St. Joseph, the patron saint of real estate, can intercede on your behalf to expedite the sale of your home.
While no concrete evidence supports its effectiveness, many people find solace in this ritual. <a href="https://massrealestatenews.com/common-home-selling-myths/" target="_blank">Is it a common home-selling myth</a>, or does it hold some credence?
Many real estate agents and home sellers swear by the practice. While others think it is a bunch of hogwash.
If you have faith it will work and want to give it a shot, here are the instructions.
Materials Needed
Before you begin, you'll need a few essential materials:
A St. Joseph Statue: You can purchase a statue at your local religious goods store or online. Ensure it is specifically marketed as a "Home Sale Kit."
A Small Hole-Digging Tool: A small garden trowel or shovel will suffice.
A Suitable Location: Choose a spot in your yard that you find peaceful or meaningful. It could be near the "For Sale" sign or another location with personal significance.
Steps to Bury a St. Joseph Statue to Sell Your House
Selling a home can be daunting, often marked by uncertainty and waiting for the right buyer. In search of extra help expediting the process, some homeowners turn to a centuries-old tradition: burying a St. Joseph statue. This age-old practice is rooted in faith and belief, as many individuals believe that St. Joseph, the patron saint of real estate, can intervene on their behalf to facilitate the sale of their property.
Here are some steps to bury a St. Joseph statue to sell a house to enhance your chances of selling your home while exploring the history and significance of this unique tradition.
Whether you see it as a matter of faith or a symbolic gesture, it's worth considering alongside your standard real estate efforts.
Purchase a St. Joseph Statue: As mentioned earlier, ensure that the statue you buy is intended for this purpose. It often comes with a small prayer card or instructions.
Prepare a Prayer: While not mandatory, you may want to write a personal prayer or use a traditional St. Joseph prayer to recite during the burial. This is an opportunity to ask for his assistance in selling your home.
Choose the Location: Find a suitable location in your yard where you plan to bury the St. Joseph statue. Many people choose the front yard near the "For Sale" sign or the entrance.
Dig a Hole: Use your garden trowel or shovel to dig a deep hole to bury the St. Joseph statue entirely, usually around 3 to 6 inches deep. While digging, you can recite your prayer.
Place the Statue: Gently place the St. Joseph statue in the hole, ensuring it faces your home.
Cover the Statue: Carefully cover the statue with soil, filling the hole. As you do so, continue to recite your prayer or express your intention to sell your home.
Mark the Spot: You should mark the spot with a small decorative stone, plant, or another meaningful object to remind you of the statue's presence.
Thank St. Joseph: After burying the statue, it is essential to show gratitude. You can do this by offering a heartfelt thanksgiving prayer.
Monitor the Progress: While the tradition doesn't guarantee immediate results, some people claim that their homes sold shortly after burying the St. Joseph statue. Keep an open mind and continue your usual efforts to market and sell your home.
Must-Have Traditional Home Selling Strategies
Selling a home can be overwhelming, but it can also be a successful and rewarding experience with the right strategies. Besides utilizing St. Joseph, you should also have a sound home-selling plan.
Here are some <a href="https://www.cincinkyrealestate.com/blog/marketing-strategies-expert-realtors-use-to-help-sell-your-home/">tips to help you sell your home quickly and at the best price possible.</a>
Pricing Accurately
First and foremost, <a href="https://www.cincinkyrealestate.com/blog/how-price-home-for-sale/">pricing your property correctly is crucial</a>. Pricing too high can deter potential buyers, while pricing too low may <img src="https://assets.site-static.com/userfiles/584/image/magnify_dollar_sign.jpg" width="325" height="217" alt="look at the price" style="float: right;" />result in a loss of profit.
To determine the right price, consider factors such as the current market conditions, comparable sales in your area, unique features, and the condition of your home. Consulting with a professional real estate appraiser or agent can provide valuable insights and help you set the optimal listing price.
Hire a Top-Producing Realtor
Choosing an excellent real estate agent is another critical step in home selling. Look for an agent with a <a href="https://www.cincinkyrealestate.com/about/">proven track record of success</a>, extensive knowledge of the local market, and excellent communication skills.
A skilled agent will guide pricing, marketing, and negotiating offers, ensuring a smooth and efficient transaction. Don't hesitate to interview multiple agents before deciding, as finding the right fit is crucial for a successful sale.
Professional Photography is Worth It
Exceptional photography is a powerful marketing tool that can significantly impact the success of your home sale. In today's digital age, most buyers begin searching online, and high-quality photographs can attract attention and generate interest.
Consider hiring a professional photographer specializing in real estate to capture your home's best features. Ensure the photos showcase each room from different angles, emphasize natural light, and highlight unique selling points. Remember, first impressions matter; eye-catching visuals can make your listing stand out.
Of course, ensuring <a href="https://www.rochesterrealestateblog.com/real-estate-photo-ready/" target="_blank">your home is spotless for the photo shoot</a> will also be necessary.
Utilize The Best Websites and Social Media
Utilizing top online websites and social media platforms is essential in reaching a wide audience of potential buyers. Listing your property on reputable real estate websites such as Zillow, Realtor.com, and Redfin can maximize exposure and increase the <img src="https://assets.site-static.com/userfiles/584/image/marketing-738013_1280.png" width="350" height="233" alt="marketing" style="float: right;" />chances of finding the right buyer.
Additionally, leverage social media platforms like Facebook, Instagram, and Twitter to share your listing and engage with prospective buyers.
Post captivating photos, compelling descriptions, and relevant hashtags to increase visibility and generate more leads. Don't forget to encourage friends and family to share your posts to reach a larger audience.
By implementing these home-selling tips, you can increase your chances of a successful sale. Remember to price your property appropriately, choose an excellent real estate agent, provide exceptional photography, and utilize top online websites and social media platforms.
With these strategies in place, you'll be well on your way to selling your home quickly and at the best price.
Final Thoughts
Burying St Joseph to sell a home is a tradition rooted in faith and symbolism. Whether you believe in its power or consider it a simple gesture, it can provide comfort during the often stressful process of selling your home.
Remember that this practice should be accompanied by conventional real estate strategies, such as setting the right price, staging your home, and marketing it effectively.
While St. Joseph may not be a guaranteed solution, the act can be a source of hope and positivity during your home-selling journey.
Burying a St. Joseph statue to sell a house is a personal choice, and its effectiveness is subjective. If you engage in this tradition, do so with faith and an open heart, and continue to pursue all practical avenues to sell your home.
Additional Resources
<a href="https://sdhouseguys.com/market-property-san-diego/">Four Great Tips For Marketing a Home For Sale</a> - Use these tips to make sure the right homebuyer sees your home and get it sold on time.
The above article “How to Bury a St. Joseph Statue to Sell Your House” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Sell_House_St_Joe_PIN_Small.jpg" width="1000" height="1500" alt="How to Bury a St. Joseph Statue to Sell Your House pin" />2023-09-28T04:00:00-07:002023-10-14T08:45:29-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21533New Construction Home Mortgage Options<img src="https://assets.site-static.com/userfiles/584/image/New_Const_Mortgage.jpg" width="535" height="635" alt="New Construction Home Mortgage Options" style="display: block; margin-left: auto; margin-right: auto;" />
What Sort of Mortgage Options Are There For New Construction Homes?
With the inventory of homes available for sale being tight in many markets, home buyers are <a href="https://www.cincinkyrealestate.com/blog/questions-to-ask-builder-buying-new-construction/">looking at new construction homes</a>. With a new construction home a buyer can buy a newly built home that is ready or almost ready to move in. Or they can select a floor plan offered by a builder, select a lot/location and select the finishes and fixtures as permitted by the builder. For financing that new construction home purchase there are different options to consider as this article explores.
Construction Mortgage
Some new construction homes are available in new developments and the builder is building new homes in particular lots that have been set up previously. For other new construction homes the buyer is responsible for finding the land for their home, purchasing that land and then getting in touch with an architect and/or builder to plan the actual home. The land for the home can be anywhere where there is enough space to build the desired home and the land is buildable.
Mortgage lenders do offer land loans to purchase land although the interest rates and terms of land loans are not as favorable as a mortgage loan for an owner-occupied home. Lot loans are viewed as somewhat riskier to the lender for a variety of reasons and hence come with higher interest rates and shorter overall terms. Buyers may get a better deal if they get a loan that covers the purchase of the land as well as building of the home as discussed below.
Some mortgage lenders will offer construction mortgages which allow the buyer to purchase land as well as pay the builder to build a home for them. Often these construction loans are based on a payment schedule where the lender will make periodic payments as certain milestones are accomplished. For example, the lender can pay out when the land is purchased, and as the home is built additional payments will be sent to the builder as they complete a certain percent of the home. Once the home is complete and the home meets all inspections for occupancy the lender will make final payment to the builder.
Buying in a Development
When buying a home in a pre-planned development the builder usually has already secured the land and planned the development down to the last home. In most areas these types of developments require advance planning and approval from local building and zoning authorities. Many builders partner with mortgage lenders or have their own associated lending company for which they offer mortgage loans to home buyers. Buyers need to be shopping around and not just accepting the first quote <img src="https://assets.site-static.com/userfiles/584/image/Couple_Looking_At_Blueprint.jpg" width="400" height="267" alt="looking at blueprint new construction home" style="float: right;" />they get from whomever.
With mortgage lending standards tighter than they have been in the past and with interest rates being higher than recent past some of the lenders who partner or are owned by builders are offering favorable lending terms in order to get buyers into their homes. These loan products may offer interest rate buy downs (meaning a temporary lower rate or a permanently lower rate) or they may have other favorable terms as compared to other lenders. Typically, in a pre-planned development buyers get a traditional mortgage and not a construction mortgage where payments are made to the builder as progress on the home is completed.
Buyers need to understand the different mortgage options and terms available to them to determine the true long-term cost as well as how much the principal and interest payment will impact their monthly budget. A knowledgeable real estate agent can be a valuable ally when getting help to find other mortgage lenders and for understanding the mortgage terms and conditions.
Different Mortgage Options
In addition to the construction mortgage and <a href="https://www.cincinkyrealestate.com/blog/need-know-getting-home-mortgage/">conventional mortgages offered by lenders</a> and some builders the buyer has more options from which to consider from and assuming the buyer and/or the home qualifies for the mortgage type. Buyers can choose from a fixed rate mortgage that remains fixed for the period of the loan (30 or 15 years are typical loan lengths) or they can choose an adjustable rate mortgage (ARM) which allows the mortgage rate to adjust periodically throughout the term of the loan. In the recent past ARMs we not as common, but with mortgage interest rates being higher ARMs are making a comeback as it allows buyers to buy a home with a lower rate up front.
ARMs do have risk though, in that if rates are high when the rate unlocks the homeowner could be facing a larger payment. Interest rates could go down but current users of ARM mortgages should not count on that as it could work against them. The past statements of date the rate but marry the house might come back to haunt some people.
The United States Department of <a href="https://www.usda.gov/media/blog/2022/06/16/boosting-rural-americas-housing-supply-usdas-construction-permanent-financing" target="_blank">Agriculture (USDA) offers a construction to permanent financing mortgage program</a>. USDA loans are only available to homes located in certain rural areas designated by the USDA. The USDA Combination Construction to Permanent Loan Program is like the construction mortgage discussed above. It ends up being a typical 30-year mortgage when the home is complete with a fixed interest rate. The benefits of the USDA mortgages include up to zero down payment, low interest rates and more. There are income restrictions on USDA mortgage and those are set by county.
The Federal Housing Administration (FHA) New Construction mortgage is not restricted by location and does not have income restrictions. The FHA mortgage allows home buyers with lower credit scores (500 and up) to apply and be considered for a <img src="https://assets.site-static.com/userfiles/584/image/open_luxury_floor_plan.jpg" width="400" height="267" alt="open floor plan" style="float: right;" />mortgage. Like the USDA mortgage the FHA new construction mortgage converts to a permanent mortgage. Down payments start at 3.5%. The FHA mortgage does have additional fees and mortgage insurance requirements.
<a href="https://www.cincinkyrealestate.com/blog/podcast-va-mortgage/">Veterans Administration (VA) mortgages</a> are available for those service members (and spouses in some cases) who were or are currently in the military and meet the VA mortgage criteria. There are no location restrictions as with the USDA mortgage. Down payments can be as low as zero percent, the mortgage insurance can be waived for those service members with a service connected disability.
For buyers not using a VA, FHA or USDA mortgage a conventional mortgage will be appropriate. Depending on the price of the home and how much the buyer plans on putting down a conventional mortgage may not be the best option. Mortgage loan amounts above $726,200.00 in most locations require the use of a jumbo mortgage which is outside of the conventional mortgage area. Jumbo mortgages usually have a higher interest rate as compared to a conventional mortgage.
Final Thoughts
Many home builders offer special deals and incentives for new construction home buyers depending on the time of year, available homes for sale and whether the buyer opts to use builder lending programs. New construction home buyers need to understand the different options are available to them. With current rates where they are at new construction home buyers should try and get every advantage possible and reduce the cost of their loan.
Additional Resources
<a href="https://www.maxrealestateexposure.com/cost-build-house/" target="_blank">What Does it Cost to Build a House</a> - Understanding the costs associated with building a home can help buyers budget and underrstand what they can really afford. Building a home is a different endeavor compared to buying an existing home and has a lot more to consider.
<a href="https://frederickrealestateonline.com/avoid-homebuyer-regrets/" target="_blank">Homeowner Regrets and How to Avoid Them</a> - Buying a home is a long term committment and getting it wrong will result in buyers remorse. Learn about some of the common homeowner regrets and ways to avoid them.
<a href="https://newportbeachrealestatecafe.com/2009/11/14/what-criteria-is-important-in-selecting-a-realtor/" target="_blank">Six Tips For Selecting a Realtor</a> - Yes a home buyer can use a real estate agent to buy a new construction home and many builders encourage buyers to bring their own agent to help them since the buyer is better informed about the process.
The above article “What Sort of Mortgage Options Are There For New Construction Homes?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/New_Const_Mortgage_PIN.jpg" width="1000" height="1500" alt="New Construction Home Mortgage Options pin" />2023-09-14T04:00:00-07:002023-09-13T13:56:17-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21505Batavia, Ohio new construction homes by DR Horton.In this video I tour the Milford model new construction home for the Heritage Farm development in Batavia, Ohio built by D.R. Horton. East of downtown Cincinnati Batavia is close to shopping, entertainment, transportation and more. This is a new development with new homes. Take a look and reach out to get assistance with buying a new construction home. If you are interested in buying a new construction home in Northern Kentucky or Greater Cincinnati please reach out to me at: paul@cincinkyrealestate.com or call/text 513-560-8002
2023-09-07T05:00:00-07:002023-09-07T04:29:54-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21472Why Do Pending Home Sales Fall Through in Real Estate?<img src="https://assets.site-static.com/userfiles/584/image/Pending_Sales_Fall.jpg" width="535" height="635" alt="Why Do Pending Home Sales Fall Through in Real Estate?" style="display: block; margin-left: auto; margin-right: auto;" />
Why Do Pending Home Sales Fall Through in Real Estate?
Pending home sales can sometimes fall through due to various reasons. These include buyer-related factors like remorse, financing challenges, and lack of awareness about the buying process. Property-related factors such as inspection issues, appraisal discrepancies, and contingencies can also contribute to sales falling through.
Educating buyers and sellers, addressing financing and inspection concerns, and streamlining the sales process are crucial to mitigate this risk. Falling through sales can impact buyers and sellers and affect the overall housing market trends. Successful home sales require appropriate pricing, enhancing property appeal, and effective marketing strategies.
Understanding Pending Home Sales: An Overview
Pending home sales are an essential aspect of the real estate market. We will provide an<a href="https://www.maxrealestateexposure.com/pending-meaning/"> overview of pending home sales</a>, emphasize the significance of analyzing pending home sales data, and explore current trends and statistics in the real estate market.
What are pending home sales?
Pending home sales refer to residential properties that have entered into a contract but have not yet closed. These properties are no longer available for purchase, as they are under contract with a prospective buyer. However, until the sale is finalized, they are considered pending.
<a href="https://gustancho.com/contingent-sales-agreement-in-real-estate/">A contingent sales agreement</a> usually moves to pending status once all the buyer's contingencies have been satisfied. In many areas of the country, there is a<a href="https://www.cincinkyrealestate.com/blog/how-do-contingent-and-pending-statuses-differ-in-real-estate/"> difference between contingent and pending sales</a>. However,<a href="https://www.cincinkyrealestate.com/idx/search-form/"> the MLS</a> does not use the contingent real estate status in Northern Kentucky and Greater Cincinnati.
Importance of analyzing pending home sales data
Analyzing pending home sales data provides valuable insights into the health and performance of the real estate market. It offers a glimpse into buyer demand, market activity, and the potential direction of home prices. By monitoring pending home sales, industry professionals can anticipate market trends, identify emerging opportunities, and adjust their strategies accordingly.
Trends and statistics in the real estate market
The real estate market is dynamic and influenced by various factors. Tracking trends and statistics within the market helps market participants understand the overall landscape. This includes monitoring changes in median home prices, inventory levels, days on the market, and regional variations. Industry professionals can make informed decisions and adapt to market conditions by <img src="https://assets.site-static.com/userfiles/584/image/Team_work.jpg" width="400" height="267" alt="team work" style="float: right;" />staying informed about market trends.
Understanding pending home sales, analyzing data, and monitoring market trends is crucial for buyers, sellers, and industry professionals who aim to navigate the real estate market effectively and make informed decisions.
Reasons for Pending Home Sales Falling Through
Understanding why pending home sales fall through is crucial for buyers and sellers alike. These reasons can be categorized into buyer-related factors and property-related factors.
Buyer-related Factors
Buyers play a significant role in the success or failure of a pending home sale. Several buyer-related factors contribute to the possibility of a deal falling through:
Buyer's remorse and changing preferences
Buyers may experience post-offer regret or change their minds due to second thoughts, unforeseen circumstances, or finding a better-suited property. Such hesitations can lead to last-minute cancellations and ultimately result in a failed sale.
Financing challenges and credit issues
Lack of financing or difficulty obtaining suitable mortgage options can derail a pending home sale. Buyers who struggle with credit issues, high debt-to-income ratios, or insufficient down payments may face hurdles in securing the necessary funds, jeopardizing the transaction.
Lack of awareness about the home-buying process
First-time buyers, in particular, may lack familiarity with the complexities of the home-buying process. Inadequate understanding of contractual obligations, timelines, or necessary inspections can lead to misunderstandings, delays, and, ultimately, a failed sale.
Property-related Factors For Pending Sale Failure
Property-specific concerns also contribute to the potential failure of pending home sales. The following factors highlight potential risks:
Home inspection issues and necessary repairs
An unfavorable home inspection report that reveals significant defects or necessary repairs can cause buyers to reconsider their decision. The sale may fall through if the parties cannot agree regarding repairs or financial adjustments.
Appraisal and pricing discrepancies
Differences in appraised value compared to the agreed-upon price could create challenges. If the appraisal comes in lower than the purchase price, buyers may struggle with financing or renegotiation, possibly leading to the termination of the sale. In real estate circles, this is referred to as an appraisal gap.
In hot real estate markets, agents may insist on<a href="https://www.cincinkyrealestate.com/blog/what-is-an-appraisal-gap-clause/"> having an appraisal gap clause</a> ensuring the sale does not fall through due to a low appraisal.
Contingencies and delays in selling previous homes
If a buyer has a contingent offer based on selling their current home, any delays or issues in that sale process can impact the pending sale. If the buyer's home sale falls through, they may be unable to proceed with the purchase, causing the awaiting deal to fail.
By understanding these buyer-related and property-related factors, buyers and sellers can take proactive measures to mitigate<img src="https://assets.site-static.com/userfiles/584/image/cracked_brick.jpg" width="400" height="533" alt="cracked brick" style="float: right;" /> risks and increase the likelihood of a successful pending home sale.
Mitigating Risk and Avoiding Sales Falling Through
Mitigating the risk of pending home sales falling through is crucial for buyers and sellers. The likelihood of a successful sale can be increased by taking proactive measures, such as educating buyers and sellers, addressing financing and inspection concerns, and streamlining the sales process.
Educating Buyers and Sellers
Educating buyers and sellers about the intricacies of the home buying and selling process is essential to avoid pitfalls. By providing comprehensive information, especially for first-time homebuyers, they can make informed decisions and be aware of the steps involved in a real estate transaction.
Transparent communication between buyers and sellers further enhances understanding and fosters a smoother process.
Providing Comprehensive Information for First-time Homebuyers
<a href="https://www.cincinkyrealestate.com/blog/category/first-time-home-buying/">First-time homebuyers often lack experience</a> navigating the complexities of purchasing a home. Providing them with resources that outline the process, clarify terminology, and outline potential challenges can empower them to make confident decisions.
Covering financing options, home inspections, and contracts can prepare them for a successful buying experience.
Transparent Communication between Buyers and Sellers
Clear and open communication between buyers and sellers is crucial to avoid misunderstandings and to set realistic expectations. Providing thorough information about the property, including any known issues or repairs, can help build trust and facilitate a smoother negotiation and closing process.
<a href="https://www.rismedia.com/2023/08/23/how-to-prove-a-seller-lied-on-a-real-estate-disclosure-form/">Being honest on a seller's property disclosure form</a> is crucial. A buyer finding out a seller was deceitful could lead to a termination of the sale.
Addressing Financing and Inspection Concerns
Financing and inspection concerns are common factors contributing to pending home sales falling through. By addressing these concerns head-on, buyers and sellers can minimize the risk of issues arising during the transaction.
Working with Reputable Lenders and Mortgage Brokers
Partnering with reputable lenders and mortgage brokers is vital for a successful home sale.<a href="https://realtybiznews.com/preparing-pre-approved-mortgage/98778925/"> Buyers should seek mortgage pre-approval</a> from reliable financial institutions to ensure their financing is in order before entering into a contract. Sellers can also benefit from verifying the buyer's financing qualifications, giving them more confidence in the transaction.
Importance of Professional Home Inspections
A<a href="https://www.cincinkyrealestate.com/blog/guide-to-the-home-inspection-process/"> professional home inspection</a> is an essential step in the home-buying process. Encouraging buyers to conduct thorough checks can identify potential issues early, allowing for necessary repairs or negotiation adjustments.
Sellers can also proactively address any known issues beforehand, reducing the chances of surprises during the inspection.
Streamlining the Sales Process
A streamlined sales process can minimize delays and uncertainties, reducing the likelihood of pending home sales falling through. This involves hiring experienced real estate agents and implementing efficient negotiation and contract management strategies.
Hiring Experienced Real Estate Agents
Enlisting the<a href="https://frederickrealestateonline.com/qualities-trustworthy-real-estate-agent/"> services of an experienced real estate agent</a> is invaluable in navigating the complexities of buying or selling a home. Their pricing, marketing, and negotiation expertise can significantly contribute to a successful sale. Buyers and sellers should carefully select agents with proven track records for optimal outcomes.
Efficient Negotiation and Contract Management
Efficient negotiation and contract management are critical elements of a successful home sale. The sales process can proceed smoothly by promptly addressing offers and counteroffers, responding to contingencies, and ensuring contractual obligations are met. Thoroughly reviewing and understanding the terms and conditions of the contract is essential for all parties involved.
By employing these risk mitigation strategies, buyers and sellers can increase the likelihood of a successful pending home sale while minimizing the chances of the transaction falling through.
Impact on the Real Estate Market
Effects of falling through sales on buyers and sellers
Buyers and sellers can experience various repercussions when pending home sales fall through. For buyers, this can lead to disappointment and frustration after investing time and effort into purchasing. They may have already emotionally committed to the property and envisioned their future, only to have their hopes dashed.
Additionally, falling through sales can disrupt buyers' plans for relocating or upgrading their living arrangements, causing inconvenience and potentially delaying their housing goals.
On the other hand, sellers face their challenges when a pending sale falls through. They may have already made plans to move or purchase another property based on the assumption of a successful sale. When it doesn't materialize, sellers may need to readjust their goals, potentially incurring additional costs or delays. They may also experience frustration at having to restart the selling process and find new potential buyers.
Influence on the overall housing market trends
While individual falling through sales may not significantly impact the housing market, a collective trend can provide insights into market conditions. If more deals fall through, it could indicate a more cautious or uncertain market.
Buyers may be more selective or hesitant to commit due to economic factors or concerns about property values. Sellers, in turn, may need to adjust their pricing or marketing strategies to attract and retain potential buyers.
Conversely, decreasing falling-through sales could signify a more robust and confident market. It suggests buyers and sellers successfully navigate the sales process, indicating a healthier real estate environment. Monitoring the occurrence of falling through sales can assist market analysts, real estate professionals, and potential buyers and sellers in gauging market stability and making informed decisions.
Strategies to navigate a challenging market
Stay informed: Stay updated on market trends, local inventory, and buyer/seller preferences. Regularly research and analyze market data to make sound decisions.
Adapt pricing strategies: Continuously evaluate and adjust property prices based on market demand and comparables. Pricing competitively can attract more potential buyers and reduce the risk of falling through sales.
Increase property appeal: Enhance the property's attractiveness through staging, renovations, and proper maintenance. Investing in the property's curb appeal can make it stand out in a competitive market.
Engage experienced professionals: Work with experienced real estate agents and mortgage brokers who understand the market and can guide buyers and sellers through the process.
Seek pre-approval: Buyers should aim for pre-approval from lenders to strengthen their purchasing position and demonstrate commitment to sellers.
Communicate effectively: Open and transparent communication between buyers, sellers, and their respective agents is essential to address concerns, negotiate terms, and prevent misunderstandings that can lead to falling sales.
Tips for Successful Home Sales
Pricing the home appropriately
<a href="https://www.cincinkyrealestate.com/blog/how-price-home-for-sale/">Setting the right price for your home</a> is crucial to attract potential buyers and maximize your chances of a successful sale. Research local market trends and consult with experienced real estate agents to determine a competitive yet realistic price.
Consider factors such as location, condition, size, and recent comparable sales in the area. Pricing your home too high can discourage buyers while pricing it too low may raise suspicions about the property's value.
Staging and enhancing the appeal of the property
First impressions matter when it comes to selling a home. Invest time and effort in<a href="https://www.cincinkyrealestate.com/blog/the-best-marketing-and-staging-tips-for-selling-a-luxury-home/"> staging your property</a> to make it visually appealing. Remove clutter, depersonalize the space, and highlight its key features. Consider repainting walls, updating fixtures, and making necessary repairs to increase the overall appeal.
Pay attention to curb appeal by maintaining a well-groomed exterior and creating an inviting entrance. A well-presented home is more likely to attract buyers and generate higher offers.
Marketing and reaching potential buyers effectively
Effective marketing is essential to reach a vast pool of potential buyers. Utilize various marketing channels such as online listings, social media platforms, and local advertising to create visibility for your home. Use high-quality professional photographs, virtual tours, and compelling property descriptions to showcase its unique features.
Collaborate with your real estate agent to develop a targeted marketing strategy tailored to your property's strengths. Additionally, consider hosting open houses and networking opportunities to increase exposure. The more people see your home, the higher the chance of finding a qualified buyer.
Final Thoughts
While pending sales are close to being a done deal, nothing is over until the fat lady sings. It is essential for buyers and sellers to fulfill their responsibilities to ensure a successful closing.
Additional Resources
<a href="https://merrimackvalleymarealestate.com/selling-a-house/" target="_blank">House Selling Tips</a> - Understanding the steps towards selling a home can keep the home seller on track both prior and once a home has gone pending. Make a mistep and the buyers could go running.
The above article “Why Do Pending Home Sales Fall Through in Real Estate?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Pending_Sales_Fall_PIN.jpg" width="1000" height="1500" alt="Why Do Pending Home Sales Fall Through in Real Estate? pin" />2023-08-31T04:00:00-07:002023-08-30T12:16:06-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21381Triple Crown New Construction in Union, KYCheck out this walkthrough of the Blair model home in the Justify development of Triple Crown Union, Kentucky. Built by Fischer Homes this home features 4-5 bathrooms, up to 5 bathrooms, 3000 square foot and up and many more features. Take a look and reach out if you need assistance buying a new construction home. If you are interested in buying a new construction home in Northern Kentucky or Greater Cincinnati please reach out to me at: paul@cincinkyrealestate.com or call/text 513-560-8002
2023-08-20T04:00:00-07:002023-09-07T04:26:41-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21362What Are Pocket Listings: A Comprehensive Guide<img src="https://assets.site-static.com/userfiles/584/image/Pocket_listings.jpg" width="535" height="635" alt="Pocket Listing" style="display: block; margin-left: auto; margin-right: auto;" />
What Are Pocket Listings: An Indepth Guide
Pocket listings are off-market real estate sales, often kept private and not published on MLS. These listings are only shared with a select group of preferred clients or agents. While pocket listings offer privacy for sellers and potentially less competition for buyers, they also limit property exposure and <a href="https://www.cincinkyrealestate.com/blog/how-real-estate-agents-should-be-representing-their-clients/">raise ethical and industry concerns</a>.
Finding pocket listings can be done by working with knowledgeable agents, exploring private networks, or understanding the Clear Cooperation Policy by The National Association of Realtors.
It's crucial to weigh the pros and cons and consider the impact on market transparency and compliance with fair housing laws.
In my experience as a real estate agent, many people don't know <a href="https://www.maxrealestateexposure.com/in-house-sale-pocket-listing/" target="_blank">what a pocket listing is</a> and how they work. We will clear up that mystery for you.
How Pocket Listings Work
Pocket listings are a unique aspect of the real estate industry that operates outside the traditional public listing approach. We will explore off-market listings' basics, benefits and drawbacks, and important legal considerations.
The Basics of Pocket Listings
At their core, exclusive listings are properties that are <a href="https://www.cincinkyrealestate.com/blog/how-do-real-estate-websites-work/">not publicly advertised on the Multiple Listing Service (MLS)</a>. Instead, they are marketed privately and exclusively shared with a select group of clients or agents. Pocket listings are kept 'in the listing agent's pocket, hence their name.
These listings offer a level of exclusivity to both sellers and potential buyers. Sellers may choose in-house listings to maintain privacy, target a specific audience, test the market with a limited run, or avoid competitive bidding.
For buyers, quiet listings can provide an opportunity to <a href="https://massrealestatenews.com/find-off-market-homes/" target="_blank">discover unique off-market properties</a> that are not readily available to the general public.
Benefits and Drawbacks
While off-market properties offer certain advantages, such as increased privacy for sellers and reduced competition for buyers, drawbacks exist.
One significant benefit of pocket real estate listings is the high level of privacy they afford sellers. By keeping the property off the MLS, sellers can control who can access information about their home and who can arrange viewings. This can be appealing to those who value discretion.
For buyers, private listings may provide an opportunity to find hidden gems that are not widely known or available on the open market. It allows them to explore exclusive options and potentially avoid bidding wars that often occur with publicly listed <img src="https://assets.site-static.com/userfiles/584/image/mortgage-295211_1280.png" width="400" height="291" alt="money house" style="float: right;" />properties.
However, the limited exposure of exclusive listings can also be a downside. Since these properties are not publicly advertised, potential buyers may miss out on opportunities if they are not connected to agents or networks with access to pocket listings.
The reduced exposure also means fewer buyers may be aware of the property, potentially leading to fewer offers and no bidding wars.
Legal Considerations
Regarding the legality of pocket listings, it's important to note that the National Association of Realtors (NAR) has prohibited them. However, it's worth mentioning that pocket listings may still be legal in certain states or regions, as regulations can vary.
Realtors must navigate the legal landscape and ensure compliance with local real estate laws, including <a href="https://www.cincinkyrealestate.com/blog/home-selling-disclosure-form/">disclosure requirements</a> and fair housing regulations. Agents and sellers must know the legal implications and consult with professionals who can guide their jurisdiction.
Finding Pocket Listings
Finding private listings requires specific strategies to access these exclusive off-market properties. Here are some approaches to consider:
Working with a Knowledgeable Agent
One effective way to discover pocket listings is by partnering with a knowledgeable real estate agent. These agents have connections and insights into the local market, often maintaining relationships with sellers who prefer to keep their listings private.
A skilled agent can help navigate the world of off-market homes and present suitable opportunities to their clients.
Exploring Private Networks and Select Groups
Another avenue to <a href="https://www.rismedia.com/2023/08/04/exploring-off-market-houses-unveiling-hidden-opportunities/" target="_blank">find off-market houses</a> is through private networks or select groups. These exclusive networks consist of real estate agents who share information about off-market properties within their circle.
Agents in these networks provide access to a hidden inventory of in-house listings that are not publicly advertised. By tapping into these networks, buyers can uncover unique opportunities that may not be available through traditional channels.
Understanding the Clear Cooperation Policy
It's crucial to familiarize yourself with the Clear Cooperation Policy, which promotes transparency in the real estate market. This policy, implemented by some local real estate associations, requires agents to list properties on the MLS within a specified time frame after initial marketing.
However, exceptions to the Clear Cooperation Policy may allow for pocket listings, such as exclusivity agreements or pre-marketing periods. By understanding this policy, buyers and agents can navigate the regulations surrounding exclusive listings effectively.
By employing these methods and staying informed about the unique dynamics of pocket listings, buyers can increase their chances of discovering hidden gems that are not widely available through traditional listing channels.
Pros and Cons of Pocket Listings
Advantages for Sellers
Pocket listings offer several advantages for sellers in the real estate market. First and foremost, they provide a higher level of privacy and control over the sale process. By keeping the listing off the MLS, sellers can avoid constant showings and open houses, limiting access to their property to only serious and qualified buyers.
Additionally, quiet listings can create an air of exclusivity around the property, attracting elite buyers seeking unique and off-market opportunities. This can lead to a quicker sale and even a higher selling price, as buyers may be willing to pay a premium to secure an exclusive property.
Furthermore, for sellers who wish to test the market or set a specific asking price, off-market listings allow them to gauge buyer interest and evaluate responses without publicly committing to a final selling price.
Benefits for Buyers
While pocket listings primarily benefit sellers' privacy, there are also advantages for buyers actively seeking properties in a competitive market. With pocket listings, buyers can access off-market properties that are not widely advertised. This reduces competition from other buyers and allows them to negotiate directly with the seller or agent.
Moreover, off-market homes can allow buyers to discover hidden gems and unique properties that may not be found through <img src="https://assets.site-static.com/userfiles/584/image/Frustrated_Woman_Computer.jpg" width="400" height="267" alt="frustrated woman" style="float: right;" />traditional channels. This exclusivity can give buyers an edge in finding their dream home or investment opportunity before it becomes widely known.
Ethical and Industry Implications
While pocket listings have definite benefits, there are also ethical and industry implications to consider. One concern is the potential lack of transparency in the market. Keeping properties off the MLS makes it more difficult for industry professionals to accurately assess sales prices and comparable properties in a given area. This can impact property valuations and overall market analysis.
Furthermore, excluding certain groups from accessing pocket listings may raise fair housing concerns. By limiting exposure to a select group of buyers or agents, there is a risk of discriminating against specific demographics. Agents and sellers must be aware of fair housing laws and strive to promote equal opportunities in the real estate market.
In-house listings present opportunities for sellers to maintain privacy, attract exclusive buyers, and potentially negotiate higher prices. For buyers, pocket listings can offer off-market advantages and the chance to uncover hidden gems. However, ethical considerations and potential impacts on market transparency should also be considered.
Ensuring Privacy and Exclusivity
Regarding in-house listings, maintaining privacy and exclusivity is a primary concern for sellers and buyers.
Let's explore some key aspects related to this:
Maintaining Confidentiality for Sellers
Sellers who choose pocket listings value their privacy and prefer to keep their property sale confidential. By not publicly advertising their listing, they can avoid the influx of potential buyers that comes with traditional listings. This exclusivity gives sellers more control over who sees their property and allows for a more discreet selling process.
Limited Exposure for Buyers
For buyers, pocket listings provide a unique opportunity to access off-market properties that are not readily available to the general public. These exclusive listings allow buyers to explore properties before they become widely known, potentially giving them an advantage in negotiations. However, it's important to note that limited exposure can also mean fewer property options for buyers.
Potential Impact on Property Values
One of the potential implications of pocket listings is how they can impact <a href="https://www.cincinkyrealestate.com/blog/what-to-know-about-the-home-appraisal-process/">property values</a>. Keeping listings private and not sharing them on the MLS or broader market makes it more challenging to accurately assess the actual value of properties in a given area.
This lack of transparency may lead to discrepancies in property valuations, affecting individual sales and entire neighborhoods.
In conclusion, ensuring privacy and exclusivity are critical considerations in quiet listings. Sellers value the confidentiality of keeping their property sale private, while buyers can access off-market properties before they hit the general market.
However, it's essential to be aware of the potential impact on property values due to the limited exposure and market transparency associated with in-house listings.
Pocket Listings and the Real Estate Market
Exclusive listings have the potential to impact the real estate market in various ways. Let's explore the effects on market transparency, compliance with fair housing laws, and the impact on comparable sales data.
Effects on Market Transparency
Pocket listings, being off-market sales, can reduce the transparency of the real estate market. Since these properties are not publicly listed, it becomes challenging for industry professionals to accurately gauge the number of homes sold in a particular area. This lack of information can hinder the ability to assess the actual market conditions, affecting buyers and sellers.
Buyers may have limited visibility and access to potential properties without comprehensive data on all available listings. This restricted access can contribute to a less competitive market, potentially affecting pricing and negotiation dynamics.
Also, real estate agents may struggle to provide accurate market analyses and make informed client recommendations.
Compliance with Fair Housing Laws
When pocket listings are utilized, there is a concern regarding compliance with fair housing laws. By excluding certain groups from accessing the properties, there is a risk of inadvertently discriminating against potential buyers based on protected characteristics such as race, religion, or gender.
Fair housing laws ensure equal access to housing opportunities; off-market listings can undermine these principles.
Agents and sellers must know fair housing regulations and ensure their real estate practices align with them. Transparency and equal opportunity are vital for promoting a fair and inclusive real estate market.
Impact on Comparable Sales Data
The use of off-market properties can also present challenges when it comes to gathering accurate, comparable sales data. Without proper public records, it becomes harder to determine the actual value of a property or assess its market performance. This lack of data affects buyers, sellers, appraisers, lenders, and other industry professionals who rely on comparative market analysis.
Data plays a crucial role in determining property values and making informed decisions. The limited availability of information resulting from pocket listings can distort market perceptions, potentially leading to inaccurate valuations and affecting overall market stability.
Final Thoughts
In summary, pocket listings have implications for market transparency, fair housing compliance, and the availability of comparable sales data. Industry professionals and stakeholders need to consider these factors and work towards ensuring a transparent, honest, and accurate real estate market.
Additional Resources
<a href="https://merrimackvalleymarealestate.com/will-your-home-compete/" target="_blank">How Will Your Home Compete?</a> - Getting the most buyers to go through a home when the home has been setup to present well means the better chance of getting a great offer. Learn about some ways to make your home more competitive.
<a href="https://frederickrealestateonline.com/signs-of-a-bad-real-estate-deal/" target="_blank">Signs of a Bad Real Estate Deal</a> - Pick the wrong home could end up costing you so it pays to know what are some major signs of trouble and give warning to run the other way.
The above article “What Are Pocket Listings: A Comprehensive Guide” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Pocket_Listings_PIN.jpg" width="1000" height="1500" alt="pocket listing" />2023-08-17T04:00:00-07:002023-08-16T17:50:04-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21258Questions to Ask a Builder Before Buying New Construction<img src="https://assets.site-static.com/userfiles/584/image/Builder_Questions.jpg" width="535" height="635" alt="Questions to Ask a Builder" style="display: block; margin-left: auto; margin-right: auto;" />
Questions to Ask a Builder Before Buying A New Construction Home
When <a href="https://www.cincinkyrealestate.com/blog/new-construction-home-buying/">buying new construction</a>, asking the builder the right questions is important. We will cover various aspects to consider when buying new.
You'll see a detailed analysis including the builder's background and credentials, selecting the right type of construction, a checklist of questions for homebuyers, contract and warranty details, financing options, customization possibilities, quality assurance, completion timeline, HOA management, energy efficiency, visiting the construction site, and communication channels with the builder.
One thing to keep in mind is you should always <a href="https://www.maxrealestateexposure.com/buyers-agent-new-construction/" target="_blank">have a Realtor when buying new construction</a>. Making mistakes and finding yourself in a tough situation without representation is easy.
Gain insights and make informed decisions before purchasing your new home.
Understanding the Builder: Company Background and Credentials
When embarking on purchasing new construction, it is vital to understand the builder's background and credentials thoroughly. By considering their experience and reputation, you can gain valuable insights into their expertise in the construction industry.
Company Experience in Construction
One crucial aspect to inquire about is the builder's experience in the construction field. Understanding how long they have been in business, their track record, and the number of successful projects they have completed can indicate their level of expertise and reliability.
Top Real Estate Builders in the Market
Exploring the market and identifying the top real estate builders can help you make an informed decision.
Conducting research and seeking recommendations from trusted sources can reveal the leading builders known for their quality craftsmanship, attention to detail, and customer satisfaction.
You might try a Google search for the best builders near me.
Selecting the Right Type of Construction: Options and Considerations
When purchasing a new construction, it is important to carefully consider the type of construction that best suits your needs and preferences.
We will examine two key aspects of selecting the right type of construction: choosing between custom home builders and pre-built homes and exploring different types of construction options.
Choosing between Custom Home Builders and Pre-built Homes
Choosing a custom home builder or a pre-built home is one of the first decisions. Custom home builders allow you to have more control over the design and features of your home. You can work closely with the builder to create a personalized space that matches your vision.
On the other hand, pre-built homes are ready-made homes that have already been constructed. They offer a quicker move-in process and often come with standardized features and floor plans. This option can be more suitable for those with time constraints or who prefer a streamlined buying experience.
Exploring Different Types of Construction (condominium, townhouse, single-family, hybrid options)
Another crucial consideration when selecting the right type of construction is to evaluate the various options available. The most common types include condominiums, townhouses, single-family homes, and hybrid options.
<a href="https://realtytimes.com/headlines/item/1047389-key-things-to-know-before-buying-a-condo" target="_blank">Condominiums are characterized by individual units</a> within a shared building. They often come with amenities and shared maintenance responsibilities.
Townhouses typically have multiple floors and shared walls but may offer more privacy than condos.
Single-family homes provide more space and greater independence, typically with a private yard. Hybrid options combine aspects of different types, such as a townhouse-style layout within a condominium complex.
Understanding the differences between these options and determining which best aligns with your lifestyle and preferences will guide you in selecting the most suitable type of construction for your new home.
Checklist for Homebuyers: Questions to Ask the Builder
When considering buying new construction, it is essential to have a checklist of questions to ask the builder. The following inquiries will help you gather important information:
Is the Lot Cost Included in the Price?
Before finalizing your decision, confirm whether the <a href="https://www.cincinkyrealestate.com/blog/what-is-a-land-loan-and-how-do-they-work/">cost of the lot is included in the overall price</a> of the new construction. Understanding the breakdown of expenses will give you a clear picture of the financial commitment.
What Are the Responsibilities of the Builder?
Understanding the builder's responsibilities during the construction process is crucial. Inquire about their role in obtaining necessary permits, coordinating with subcontractors, and ensuring building codes and regulations compliance.
Understanding their obligations will help you set realistic expectations.
Obtaining Information from the Builder: What Do You Need from Me?
Communication is key in any successful homebuying process. Ask the builder how they prefer to share important updates and information with buyers. Inquire about the documents or details they may require from you, such as proof of financing or design preferences, to ensure smooth and efficient collaboration.
By asking these essential questions, you will gain valuable insights into the construction process and the builder's responsibilities, facilitating your decision-making process and helping you make an informed choice regarding your new construction purchase.
Understanding Contract and Warranty
When <a href="https://activerain.com/blogsview/5520459/pros-and-cons-of-buying-new-construction" target="_blank">buying a new construction home</a>, it is essential to have a clear understanding of the contract and warranty provided by the builder. This section will guide you through the key aspects to consider.
Reviewing the Builder's Resource Center and Documentation
Before signing any contracts, take the time to review the builder's resource center and documentation thoroughly. This will provide valuable information about the builder's policies, procedures, and overall reputation.
Pay close attention to any disclaimers or fine print to completely understand your agreement.
Understanding the Home Construction Contract
The home construction contract is a crucial document that outlines all the terms and conditions of the purchase. Reading and comprehending each clause carefully is important to avoid misunderstandings or surprises later.
Some key points to consider include the following:
Price and payment schedule
Construction timeline and completion date
Builder's responsibilities and obligations
Buyer's responsibilities and obligations
Warranties and guarantees
Customization allowances, if applicable
Consider consulting with a real estate attorney to ensure you fully understand the contract and to address any questions or concerns you may have.
Unveiling the Builder's Warranty: What Is Covered?
Every reputable builder should provide a warranty for their new construction homes. Understanding the details of the warranty is<img src="https://assets.site-static.com/userfiles/584/image/house_in_a_box.jpg" width="400" height="582" alt="house in a box" style="float: right;" /> vital to protect your investment. Look for information regarding the following:
Length of the warranty
What is covered under the warranty
Procedures for submitting warranty claims
Responsibilities of the builder for repairs and replacements
A comprehensive warranty can provide reassurance and peace of mind, so clarify all the terms and conditions before finalizing the purchase.
Financing Options and Considerations
Exploring Mortgage Options for New Construction
Financing plays a crucial role in the decision-making process when purchasing new construction. It is essential to explore various mortgage options that best suit your needs. The first consideration is whether you will need to <a href="https://www.cincinkyrealestate.com/blog/how-do-construction-loans-work-and-when-are-they-best-to-use/">get a construction loan</a> or end loan financing.
Most of the time, the builder will take out the mortgage for construction.
Consider the following factors when evaluating mortgage options for new construction:
Down Payment Requirements: Different loan programs may have <a href="https://www.rismedia.com/2023/03/21/what-is-home-down-payment/" target="_blank">varying down payment requirements</a>. Understand how much you need to put down and plan your finances accordingly.
Interest Rates and Terms: Compare lenders' interest rates and loan terms. A slight difference in interest rates can significantly impact your monthly payments and the overall cost of the loan.
Loan Programs: Familiarize yourself with the different loan programs available, such as conventional mortgages, <a href="https://realtybiznews.com/fha-loans/98776170/" target="_blank">FHA loans</a>, VA loans, and USDA loans. Each program has its own eligibility criteria and benefits.
Pre-Approval Process: Get pre-approved for a mortgage before starting your new construction search. This will give you a better understanding of your budget and help you make more informed decisions.
Understanding Financing Terms and Conditions
Once you have selected a mortgage option, it is crucial to thoroughly review the financing terms and conditions to ensure clarity and avoid surprises. Consider the following points:
Loan Duration: Understand the duration of the loan and its impact on your monthly payments. Shorter loan terms may result in higher monthly payments but can save you money in interest over the long run.
Escrow Accounts: Inquire about the builder's policy regarding escrow accounts for expenses such as property taxes and homeowners insurance. Understand how these costs will be divided and managed. Also, does the builder allow <a href="https://www.cincinkyrealestate.com/blog/escrow-holdback/">escrow holdback</a>?
Closing Costs: Familiarize yourself with the closing costs of purchasing new construction. These costs can include appraisal fees, loan origination fees, <a href="https://www.cincinkyrealestate.com/blog/do-i-need-title-insurance-when-i-buy-a-home/">title insurance</a>, and more. Understand what fees you are responsible for paying.
Contingencies and Exit Strategy: Discuss contingencies and exit strategies with the lender to ensure you have appropriate options if unforeseen circumstances arise during the construction process.
By thoroughly exploring mortgage options and understanding financing terms and conditions, you can make informed decisions aligning with your financial goals and secure the necessary funds to purchase your new construction home.
Customization and Personalization
When buying new construction, one of the exciting aspects is the ability to customize and personalize your future home. Let's review the options for customizing floor plans, making design changes, and selecting finishes and upgrades.
Ability to Customize Floor Plans and Make Design Changes
Having the flexibility to customize floor plans allows you to create a living space that suits your unique needs and preferences. You may want to consider the following:
Discuss with the builder the extent of customization options, such as room layout modifications, additional rooms, or structural changes.
Ask if there are any limitations or restrictions on customization and if there are additional costs associated with specific modifications.
Inquire about the timeline for making design changes and any deadlines you must adhere to.
Selecting Finishes and Upgrades: How is it Handled?
Choosing finishes and upgrades allows you to add personal touches and enhance the overall aesthetic of your new home. Consider the following steps in this process:
Review the builder's selection of finishes and upgrades. Ask for samples or catalogs to understand the options available better.
Find out if the builder offers any customization packages or pre-designed upgrade options.
Inquire about the pricing and additional costs associated with each finish or upgrade.
Determine how the selection process works. Is there a designated design center where you can view and choose the finishes? Can you work with a design consultant to ensure your selections align with your vision?
Ask about any warranties or guarantees for the finishes and upgrades you choose.
By understanding the customization options for floor plans and the process of selecting finishes and upgrades, you can create a home that reflects your style and meets your lifestyle needs.
Quality Assurance and Inspections
Quality assurance and inspections ensure a smooth and successful new construction project. Builders can deliver high-quality homes that meet homebuyers' expectations by adhering to construction standards and practices.
Here are some key considerations in this regard:
Ensuring Construction Standards and Practices
Building a new home involves complying with specific standards and industry practices to guarantee the structural integrity and safety of the property. It is essential to inquire about the builder's commitment to adhering to these standards.
Ask questions such as:
What quality control measures are in place during the construction process?
How is the builder's construction team trained and certified?
Are there any recognized certifications or affiliations that the builder holds?
By understanding the builder's dedication to construction standards, you can have confidence in the quality of the finished home.
The Role of Inspections in New Construction
Inspections ensure that the construction process meets quality standards and complies with local regulations. Local building authorities or third-party inspectors typically conduct these inspections. Here are some aspects to consider:
How are inspections scheduled and managed?
At what stages of the construction process are inspections carried out?
Will the builder notify you of the inspection results and any necessary corrections?
Can you request additional inspections if desired?
Understanding the builder's inspection approach provides insight into their dedication to quality and compliance with regulations.<img src="https://assets.site-static.com/userfiles/584/image/Home_Inspection_Report_Pic.jpg" width="400" height="267" alt="home inspection" style="float: right;" /> Knowing that the construction is subject to professional scrutiny also gives you peace of mind.
A <a href="https://www.cincinkyrealestate.com/blog/podcast-1-topic-home-inspections/">new</a><a href="https://www.cincinkyrealestate.com/blog/podcast-1-topic-home-inspections/"> construction home buyer can also hire their own independent home inspector to inspect the new construction home</a>. This home inspection can be helpful to develop a punchlist the buyer can use to present to the builder to notify of any areas that may need to be addressed before closing or before the end of the warranty period.
In conclusion, ensuring quality assurance and inspections is essential when buying new construction. By discussing construction standards and practices with the builder and understanding their inspection procedures, you can feel confident in the quality of your new home.
Completion Timeline and Post-Construction Support
Understanding the completion timeline and post-construction support is essential when buying a new construction property. This section explores estimating the project completion schedule, handling punch list items and pending checklists, and the builder's approach to repairs and after-sale support.
Estimating the Project Completion Schedule
It's important to clearly understand when your new home will be ready for occupancy. Ask the builder for an estimated project completion schedule, considering potential delays that may arise during the construction process. This will help you plan your move-in date and make the necessary arrangements.
Handling Punch List Items and Pending Checklist
Before the final closing, some minor items might need attention or completion. These are typically documented in a punch list or pending checklist. Inquire about how the builder handles these items and their process for ensuring they are addressed and resolved before the final handover of the property.
Builder's Approach to Repairs and After-Sale Support
Understanding the builder's approach to repairs and after-sale support is crucial once you move into your new home. Inquire about the warranty coverage, including the duration and what it covers.
Additionally, ask about their customer service department or designated contact for any issues that may arise post-construction. Knowing how the builder handles repairs and provides ongoing support will give you peace of mind as a homeowner.
Homeowners' Association (HOA) Management
When purchasing a new construction property, it is essential to understand the rules and responsibilities set by the <a href="https://original.newsbreak.com/@massrealty-1600066/3065178370514-what-is-a-massachusetts-homeowners-association-and-what-do-they-do" target="_blank">Homeowners' Association (HOA)</a>. The HOA manages and maintains common areas, enforces community regulations, and collects fees from homeowners for these services.
Understanding HOA Rules and Responsibilities
It is crucial to familiarize yourself with the specific rules and regulations established by the HOA. These may cover various topics, including architectural guidelines, landscaping restrictions, pet policies, noise regulations, and community use restrictions.
By understanding and complying with these rules, homeowners can ensure a harmonious living environment and avoid potential conflicts with the HOA.
Clarifying HOA Fees and Services Provided
Homeowners should clearly understand the fees associated with the HOA and the services provided in return. HOA fees typically cover maintenance of common areas, amenities such as pools or gyms, landscaping, snow removal, trash collection, and sometimes even utilities.
It is essential to know the exact fee amount, payment schedule, and any potential fee increases or special assessments that may be anticipated.
Additionally, homeowners should inquire about what services are included in the HOA fees to ensure they align with their expectations.
Architectural guidelines
Landscaping restrictions
Pet policies
Noise regulations
Community use restrictions
By understanding and complying with these rules, homeowners can ensure a harmonious living environment and avoid potential conflicts with the HOA.
Regarding HOA fees, homeowners should clearly understand the exact amount, payment schedule, and any potential fee increases or special assessments that may be anticipated.
Additionally, it is important to inquire about what services are included in the HOA fees to ensure they align with their expectations.
Energy Efficiency and Green Features
When considering buying new construction, examining the energy efficiency and green features incorporated into the home is essential. We will explore the practices followed by builders to ensure energy-efficient home construction and the various green features that can be included.
Exploring Energy-Efficient Home Construction Practices
Builders today prioritize energy efficiency to reduce environmental impact and save homeowners money on utility bills. Some common energy-efficient home construction practices include:
Installation of high-performance insulation to minimize energy loss
Use of energy-efficient windows and doors to improve thermal insulation
Incorporation of advanced HVAC systems for optimal heating and cooling efficiency
Integration of energy-saving appliances and lighting fixtures
Implementation of smart home technology to regulate energy consumption
Inclusions and Options for Green Features
In addition to energy efficiency, builders may offer various green features that promote sustainability and environmental responsibility. These may include:
<a href="https://www.cincinkyrealestate.com/blog/what-to-know-about-adding-solar-panels-to-your-home/">Solar panels</a> for renewable energy generation
Water-saving fixtures and systems to reduce water consumption
Use of eco-friendly building materials, such as recycled or locally sourced materials
Incorporation of landscaping designs that prioritize native and drought-resistant plants
Integration of rainwater harvesting systems for irrigation purposes
By exploring energy-efficient construction practices and green features, homebuyers can contribute to a greener future, potentially reducing their long-term utility costs and enjoying a more sustainable living environment. There are even tax benefits available in most circumstances. While the tax litigation for green upgrades tends to change each year, there is a wealth of <a href="https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp" target="_blank">free tax filing</a> resources that can keep you fully informed, primed, and ready to take full advantage.
Visiting the Construction Site and Staying Informed
When buying new construction, it is essential to have the opportunity to visit the construction site during the building process. This firsthand experience allows you to observe the progress, understand the layout, and identify potential concerns.
Here are key aspects to consider regarding site visits and staying informed:
Can You Visit the Construction Site During the Process?
Arrange Site Visits: Request the builder's policy on-site visits and schedule visits accordingly.
Guided Tours: Inquire if specific days or times are allocated for guided tours to ensure safety and proper supervision.
Accompanied Visits: Check if it is necessary to have a representative from the builder accompany you during the visit.
Documenting Progress: Take notes or photos during each visit to track the construction progress and discuss any concerns in the subsequent communication.
Builder's Communication Channels and Updates
To stay informed and maintain regular communication throughout the construction process, it is crucial to understand the builder's preferred communication channels and how they provide updates. Consider the following:
Contact Information: Obtain the builder's contact details, including the primary point of contact, phone number, and email address.
Communication Frequency: Discuss how often the builder will update the construction progress and any possible changes.
Prompt Response: Inquire about the builder's expected response time for any questions or concerns you may have.
Construction Updates: Find out if the builder shares regular updates, such as weekly or monthly progress reports, through email, online portals, or other means.
By visiting the construction site and establishing effective communication channels, you can stay informed about the progress, address any concerns promptly, and ensure a smoother buying experience with your new construction.
Additional Resources
<a href="https://sdhouseguys.com/buy-new-construction-home/" target="_blank">Pros and Cons of Buying New Construction</a> - Don't sign on the dotted line until a full understanding of the pros and cons of buying a new construction home is had. There are things to consider that will make an impact on the decision.
<a href="https://fhalenders.com/fha-construction-loan/" target="_blank">FHA New Home Construction Loans</a> - The FHA does offer new home construction loan options to help one get into a home. Learn more about the requirements of the loan and the timeframes that are involved.
The above article “Questions to Ask a Builder Before Buying New Construction” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Builder_Questions_PIN.jpg" width="2000" height="3000" alt="https://www.cincinkyrealestate.com/blog/podcast-1-topic-home-inspections/" />2023-08-03T04:00:00-07:002024-02-21T16:57:01-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21238June 2023 Greater Cincinnati Multifamily Market ReportThe 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.
<img src="https://assets.site-static.com/userfiles/584/image/June_2023_Multifamily_Real_Estate_Market.jpg" width="6000" height="3500" alt="June 2023 Greater Cincinnati Multifamily Market Report" />2023-07-27T04:00:00-07:002023-07-26T14:50:57-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21237June 2023 Greater Cincinnati Luxury Real Estate Market ReportHigh mortgage rates are causing buyers to step back and continue to rent. Others who may have sold to upgrade their home are also opting not to sell as the prospect of having to buy with the current mortgage rates does not make financial sense for many. Either mortgage rates will need to come down or those who are selling their homes will need to cut the price if it is not selling in this environment.
<img src="https://assets.site-static.com/userfiles/584/image/June_2023_RE_Lux.jpg" width="9000" height="6400" alt="Greater Cincinnati Luxury Market Report June 2023" />
<a href="https://wolfstreet.com/2023/07/25/the-most-splendid-housing-bubbles-in-america-july-update-3rd-year-over-year-price-drop-in-a-row-monthly-increases-are-just-seasonal-robert-shiller/" target="_blank">Monthly Increases are Seasonal</a> - With low inventory and high interest rates for mortgages homes are moving vary slowly. The price increases that have been had are the typical price increases that is seen during the spring selling season.2023-07-27T04:00:00-07:002023-07-26T14:00:23-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21193What is an FHA-Approved Condo List?<img src="https://assets.site-static.com/userfiles/584/image/FHA_Condo_Approved.jpg" width="535" height="635" alt="What is an FHA-Approved Condo List?" style="display: block; margin-left: auto; margin-right: auto;" />
Demystifying FHA Approved Condo Lists: A Comprehensive Guide
The Federal Housing Administration (FHA) plays a vital role in expanding homeownership opportunities for individuals and families across the United States. One of the ways it accomplishes this is through its FHA condo approval program.
We will delve into the intricacies of FHA condo approval and the significance of the FHA-approved condo list. <a href="https://www.maxrealestateexposure.com/sellers-buyers-beware-fha-condo-approval-requirements/" target="_blank">FHA-approved condos</a> are more saleable than those that are not.
FHA loans are a popular option for those <a href="https://www.cincinkyrealestate.com/blog/should-i-buy-a-condominium/">buying a condo</a>, especially for first-timers.
What is FHA Condo Approval
FHA condo approval is a process through which the FHA determines whether a condominium project meets its specific criteria for financing. These criteria are designed to ensure the condominium project's financial stability, sustainability, and quality.
By approving a condo, the FHA essentially declares that it meets the requirements for buyers to secure FHA-insured loans.
Importance of FHA Condo Approval
The importance of FHA condo approval cannot be overstated, as it holds numerous benefits for buyers and sellers involved in purchasing or selling a condominium unit.
Let's explore the key reasons why FHA condo approval is significant:
Access to FHA Financing
FHA approval opens the doors to FHA-insured mortgages for potential buyers. <a href="https://realtytimes.com/headlines/item/1046929-what-are-the-pros-and-cons-of-fha-loans-for-buyers-and-sellers" target="_blank">FHA loans are attractive</a> to many individuals and families due to their more lenient qualifying guidelines than conventional loans.
These loans often have lower down payment requirements, more <a href="https://www.cincinkyrealestate.com/blog/3-smart-tips-for-improving-your-credit-score-prior-to-applying-for-a-home-mortgage/">flexible credit score requirements</a>, and higher debt-to-income ratio allowances.
By securing FHA approval, a condominium project enables a broader range of buyers to obtain financing, expanding the pool of<img src="https://assets.site-static.com/userfiles/584/image/bullseye_in_hand.jpg" width="400" height="267" alt="on target" style="float: right;" /> potential buyers.
Competitive Financing Terms
FHA-backed loans typically offer competitive interest rates, making them appealing to borrowers. With FHA condo approval, buyers can take advantage of these favorable loan terms, potentially saving them money over the life of the loan.
The availability of affordable financing options can significantly affect a buyer's ability to afford a condominium unit within an approved project.
Enhanced Marketability For Sellers
FHA approval enhances the marketability of their condominium units. Sellers can attract a larger pool of qualified buyers by being part of an FHA-approved project. This increased demand can lead to a <a href="https://www.cincinkyrealestate.com/blog/how-to-sell-your-home-fast/">faster selling process</a> and, in some cases, multiple offers, giving sellers more negotiating power.
Ultimately, FHA approval can improve property values and expedite sales transactions.
Streamlined Approval Process
The FHA's approval process for condominium projects involves reviewing various factors, such as financial stability, legal compliance, and insurance coverage.
Once a condo project is approved, individual units within that project can be financed with a streamlined approval process. Buyers can secure FHA loans with fewer documentation requirements and a smoother overall loan process, saving time and reducing administrative burdens.
Confidence in Financial Stability
FHA condo approval provides a level of assurance to buyers that the project meets certain financial stability standards. The FHA evaluates the project's budget, reserve funds, and homeowner association (HOA) dues to ensure long-term financial viability.
Approval can instill confidence in buyers, knowing they are investing in a financially sound condominium project.
Reduced Risk For Lenders
Lenders offering FHA-insured loans benefit from condo projects that have obtained FHA approval. FHA insurance protects lenders against losses in the event of borrower default, making FHA loans less risky for lenders.
Consequently, lenders may be more willing to provide financing for units within FHA-approved projects, increasing accessibility to<img src="https://assets.site-static.com/userfiles/584/image/property_value_concept.jpg" width="400" height="267" alt="house" style="float: right;" /> financing options for buyers.
FHA Approved Condo List For Communities
The FHA maintains an official list, known as the <a href="https://www.rismedia.com/2023/03/24/how-to-get-on-fha-condo-approval-list/" target="_blank">FHA-approved condo list</a> or the FHA condominium approval list, which consists of all the projects that meet the FHA's approval criteria. This list serves as a resource for buyers, lenders, and real estate professionals to identify condos eligible for FHA financing.
The FHA Approved Condo List provides detailed information about each approved condo by the FHA project, including the name, location, and approval date. It also indicates whether the approval is active, expired, or suspended. The list is regularly updated to reflect new approvals, expirations, or project status changes.
Accessing the FHA-Approved Condo List
The FHA condo approval list is an official roster the Federal Housing Administration (FHA) maintains. It serves as a comprehensive directory of condominium projects that have met the specific criteria set by the FHA for financing eligibility.
The list is valuable for buyers, lenders, and real estate professionals to identify condominium projects that qualify for FHA-insured loans.
The FHA-approved condo list provides detailed information about each approved project, including its name, location, and approval date. It also indicates whether the approval is active, expired, or suspended. The list is regularly updated to reflect new approvals, expiration dates, or project status changes.
How to Access the FHA-Approved Condo List
There are several ways to access the FHA-approved condo list:
OFFICIAL FHA WEBSITE: The FHA maintains an official website where individuals can access the list directly. Users can search for approved condo projects by state, city, county, or project name by navigating to the FHA's condominiums webpage. The website offers a user-friendly interface allowing easy exploration of approved condos in specific areas.
LENDER OR REAL ESTATE AGENT: Buyers and industry professionals can also consult with their lender or real estate agent to access FHA-approved condo listings. These professionals typically have access to the list and can guide FHA-approved projects based on the buyer's preferences and needs.
Significance of the FHA-Approved Condo List
The FHA-approved condo list holds significant importance for various stakeholders in the real estate market:
BUYERS: For buyers seeking to purchase a condominium unit with FHA financing, the list is a valuable tool to identify eligible projects. By referring to the FHA-approved condo list, buyers can ensure that the condominium they are interested in is FHA-approved, allowing them to pursue FHA-insured financing options and take advantage of the benefits associated with FHA loans.
LENDERS: Lenders offering FHA-insured loans rely on the FHA Approved Condo List to determine whether a condominium project is eligible for FHA financing. The list provides lenders with the necessary information to assess the viability of lending within a specific condominium project. This knowledge helps lenders make informed decisions about offering FHA loans to borrowers interested in purchasing units within approved projects.
REAL ESTATE PROFESSIONALS: Real estate agents and brokers can leverage the FHA-approved condo listings to identify suitable condominium options for clients seeking FHA financing. By being knowledgeable about FHA-approved projects in their area, real estate professionals can guide buyers toward properties that align with their financing preferences and increase the likelihood of a successful transaction.
FHA COMPLIANCE: The FHA approval list also serves as a mechanism for the FHA to ensure compliance with its guidelines and standards. It allows the FHA to monitor and maintain quality control over the condominium projects that receive its approval. Regular updates and reviews of the list help maintain the integrity of FHA-approved projects and protect the interests of buyers and lenders involved in FHA-insured transactions.
It should be noted, in case you're wondering, <a href="https://fhalenders.com/fha-loan-for-a-townhouse/" target="_blank">buying a townhouse with an FHA loan</a> has similar rules.
Final Thoughts
FHA condo approval and the associated FHA Approved Condo List are crucial components of the home-buying process. The FHA's stringent criteria ensure the financial stability and quality of approved projects, while the list provides a valuable resource for buyers and sellers seeking FHA-backed financing.
By leveraging the advantages of FHA-approved condos, aspiring homeowners can easily attain affordable financing and realize their dreams of homeownership.
Additional Resources
<a href="https://www.madisonmortgageguys.com/warrantable-vs-non-warrantable-condos/" target="_blank">Warrantable vs. Non-Warrantable Condos</a> - Just because a condo does not qualify for an FHA mortgage does not mean it cannot be purchased with financing. Learn about the financing options that are available for different condo types.
The above article “What is an FHA-Approved Condo List?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Approved_Condo_FHA.jpg" width="1000" height="1500" alt="What is an FHA-Approved Condo List?" />2023-07-20T09:00:00-07:002023-07-20T07:40:48-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21140Pros and Cons of We Buy Ugly Houses<img src="https://assets.site-static.com/userfiles/584/image/We_Buy_Ugly.jpg" width="535" height="635" alt="Pros and Cons of We Buy Ugly Houses" style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" />
What to Know About The We Buy Ugly Houses Company
Have you heard or seen the We Buy Ugly Houses advertisements and wondered what they were all about?
When homeowners hurry to sell their properties, they often explore alternative options that provide quick, hassle-free solutions. <a href="https://www.maxrealestateexposure.com/pros-cons-we-buy-houses-flipping-companies/" target="_blank">We Buy Ugly Houses is a well-known company</a> that promises to purchase homes in any condition. Maximum Real Estate Exposure explains the good, bad, and ugly.
<a href="https://www.cincinkyrealestate.com/blog/should-you-sell-your-home-to-a-we-buy-houses-for-cash-company/" target="_blank">Companies that buy houses for cash</a> offer sellers a convenient way to offload their properties without going through the traditional real estate process. We will delve into the pros and cons, analyze reviews of the company, and address concerns regarding its legitimacy.
Pros
The company provides an alternative solution for selling a home with various benefits. With quick cash offers, the ability to sell properties without repairs or renovations, no commissions or fees, and a streamlined process, homeowners can find convenience and simplicity in selling their properties.
We will explore the pros and cons and analyze its value proposition as an alternative selling option.
Quick Cash Offers
We Buy Ugly Houses specializes in buying properties for cash, providing homeowners a swift solution to their selling needs. This can be a significant advantage if you're in a time-sensitive situation or facing financial difficulties.<img src="https://assets.site-static.com/userfiles/584/image/Locked_Cash_Reduce.jpg" width="400" height="600" alt="cash" style="float: right;" />
Without a buyer needing a mortgage, there are no financial worries, such as a buyer not getting a commitment or an <a href="https://www.cincinkyrealestate.com/blog/what-is-an-appraisal-gap-clause/">appraisal gap</a>.
No Repairs or Renovations
Selling a house traditionally requires extensive repairs and renovations to attract potential buyers. We Buy Ugly Houses eliminates this burden by purchasing properties as-is, regardless of their condition. <a href="https://www.cincinkyrealestate.com/blog/selling-home-as-is/">Selling as-is</a> can save homeowners both time and money.
No Commission or Fees
Unlike the conventional real estate process, there are no <a href="https://realtybiznews.com/buyers-agent-compensated/98777939/" target="_blank">commissions or fees to a buyer's or seller's agent</a>. This means you can avoid the expenses typically associated with hiring a real estate agent or listing your home on the market.
Streamlined Process
The company prides itself on simplifying the selling process. They typically handle all the paperwork and facilitate a quick closing, allowing sellers to avoid the lengthy procedures and uncertainties often accompanying traditional home sales.
Most of the time, you can close in under two weeks from start to finish.
They Will Buy Just About Any Property
One of the most significant advantages of going to a real estate investor like We Buy Ugly Houses is that they will buy most properties.
Is your property in deplorable shape? Is there another issue that makes it challenging to sell? <a href="https://realtytimes.com/headlines/item/1047227-pros-and-cons-of-a-stigmatized-property" target="_blank">Is the house stigmatized</a> in some way? It is unlikely the company will care.
Cons
It is a well-known company that offers homeowners a convenient solution for selling their properties quickly and without needing repairs or renovations. However, there are some significant drawbacks.
Significantly Lower Sale Price
While We Buy Ugly Houses offers convenience, sellers should be prepared to receive a lower sale price for their property. The company primarily focuses on acquiring homes at a discounted rate, meaning the purchase offer may be significantly below market value.
You can expect a real estate investor such as We Buy Ugly Houses to pay you thirty to fifty percent less than the market value of your property.
Limited Market Presence in Some Areas
It operates as a franchise, so its availability and reach can vary depending on the location. This little market presence could restrict potential sellers from accessing the company's services in certain areas.
If the company is not in your area, numerous other real estate investment companies would welcome placing a bid.
Reviews of We Buy Ugly Houses
Reviews of We Buy Ugly Houses are mixed, as with any service or company. Some sellers have reported positive experiences, highlighting the company's quick turnaround and stress-free process.
Others, however, have expressed dissatisfaction with the <a href="https://www.cincinkyrealestate.com/blog/how-to-deal-with-a-low-ball-home-offer/">lowball offers</a> they received or felt that the company took advantage of their urgent situations.
Potential sellers must research and read reviews specific to their local franchise better to understand the company's reputation in their area.
It is possible one franchise could have excellent reviews while another is unfavorable.
Are We Buy Ugly Houses a Scam?
A popular question is whether We Buy Ugly Houses is a scam. It is not a scam. It is a legitimate company with a long history of <img src="https://assets.site-static.com/userfiles/584/image/scared_couple.jpg" width="400" height="256" alt="scared" style="float: right;" />purchasing distressed properties directly from homeowners. However, as with any business, there may be variations in the quality of service and the offers provided by different franchise locations.
It is essential to thoroughly research the local franchise and read reviews from previous sellers to ensure a positive experience.
Final Thoughts
We Buy Ugly Houses can be a viable option for homeowners prioritizing speed, convenience, and a hassle-free selling experience. However, it's crucial to consider the potential drawbacks, such as lower sale prices and limited market presence.
Reading reviews specific to the local franchise can provide valuable insights into the company's reputation and service quality in your area. Alternatively, a local real estate agent may offer a competitive and comprehensive home-selling approach, leading to higher offers and a broader range of potential buyers.
Frankly, a real estate agent will usually put far more money in your pocket.
Ultimately, it is essential to thoroughly evaluate your specific needs and conduct thorough research before deciding on the best-selling option for your property.
Additional Resources
<a href="https://www.madisonmortgageguys.com/home-buyer-contingencies/" target="_blank">Common Contingencies When Buying or Selling a Home</a> - Prior to writing and/or accepting an offer for the purchase/sale of real estate the contingencies must be understood. The contingencies usually have timelines associated with them as well that can make or break a deal.
<a href="https://www.myseattlehomesearch.com/blog/what-is-a-listing-agreement-when-selling-your-home/" target="_blank">What Is A Listing Agreement Used For When Selling A Home?</a> - Homeowners need to understand the listing agreement when listing a home with a real estate agent. The listing agreement controls the terms and conditions under which the home will be sold.
The above article “Pros and Cons of We Buy Ugly Houses” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/We_Buy_Ugly_PIN.jpg" width="1000" height="1500" alt="we buy ugly homes pros/cons PIN" />
2023-07-13T04:00:00-07:002023-07-12T13:37:11-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21099Sanctuary Village, Villa Hills, KY Mitchell Home TourI recently had an opportunity to tour the Mitchell model home built by Fischer Homes in the new construction community of Santuary Village in Villa Hills, Kentucky. This new build community will have a community pool, club house, workout room and more. For the Mitchell model you can get 4-5 bedrooms, between 2-5 bathrooms and a 2 or 3 car garage. Take a look at the walkthrough and <a href="https://www.cincinkyrealestate.com/contact/">reach out to me</a> if you are interested in buying a new construction home in Northern Kentucky or Greater Cincinnati, Ohio area.
2023-06-30T10:00:00-07:002023-06-30T09:54:33-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21043What Does Rent to Own Mean in Real Estate?<img src="https://assets.site-static.com/userfiles/584/image/Rent_To_Own.jpg" width="535" height="635" alt="What Does Rent to Own Mean in Real Estate?" style="display: block; margin-left: auto; margin-right: auto;" />
What Does Rent to Own Mean in Real Estate?
If you don’t have money saved for a down payment but renting feels like you are wasting cash, rent-to-own homes are an option that might be a better fit. Rent to own offers some of the advantages of buying and renting. Could it be right for you?
If you are contemplating <a href="https://www.cincinkyrealestate.com/blog/3-quick-tips-home-purchase/">buying your first home</a> but don't meet the qualifications yet, renting to own could be an excellent option.
But <a href="https://www.maxrealestateexposure.com/how-rent-own-work/" target="_blank">how does rent-to-own work</a>, and what do you need to know before choosing this option? Let's examine what rent-to-own homes are and what you should know about them.
What are Rent-to-Own Homes?
A rent-to-own agreement allows you to purchase the home you are renting. You will likely pay more than other rentals if you sign this kind of agreement. However, this extra money will become your down payment when the lease ends.
There could be an "option fee" to pay when choosing this arrangement, which might cost you between 2% and 7% of the home’s value. If you don’t buy the home, you will lose this and the extra you have paid in rent.
How Does Rent to Own Work?
With a rent-to-own home, your rent payments help you eventually buy the property. Part of your rent will become your down payment when you decide to buy at the end of the lease.
The Advantages of Rent-to-Own
<a href="https://www.cincinkyrealestate.com/blog/tips-for-saving-up-for-a-down-payment-on-a-home/">Save for a down payment</a>. While renting the home, some of your rent will contribute to your down payment. During this time, you can ensure the home is right for you before you buy.
Reduced repair costs. These agreements usually split the repair costs between the landlord and the tenant. This might mean you<img src="https://assets.site-static.com/userfiles/584/image/bedroom_window.jpg" width="400" height="267" alt="bedroom" style="float: right;" />only have to pay for the smaller repair jobs, with the landlord taking care of the larger bills.
You can buy or move out at the end of the lease. If you still want to buy and have the finances necessary, you can get a mortgage and buy the home. Otherwise, you can move out.
The Disadvantages of Rent-to-Own
If you don’t buy, you will lose money. If you decide not to buy the home at the end of the lease, the extra rent money will stay with the landlord, along with any option fee.
You might not qualify for a mortgage. Even if you want to buy, your finances might not allow you. Without a mortgage, you will forfeit the extra money you have paid and could be looking for a new home to rent when the lease ends.
When Should You Consider Rent-to-Own?
In some situations, this arrangement will work out better:
When you need to save for a down payment. With more money, you can save a lot over the loan term with reduced mortgage insurance and better interest rates.
When you need to improve your credit score. If you don’t have the best credit, it can be difficult to get a mortgage, and if you do, the terms will be less favorable. With time, you can improve your credit score.
If you are sure you want to live in the home. If the area and the home are right for you, there should be less chance that you will change your mind when the lease ends and lose the extra money you’ve spent on rent.
When you have difficulty saving. If you find it hard to save a down payment, this option does it for you.
When Rent-to-Own isn’t Such a Good Idea
If you are in the following situations, other options might work better:
If you aren’t sure you’ll get a loan. If you have doubts about qualifying for the loan, you will need it when the lease ends, normal rentals are a safer option.
When you aren’t sure where you want to live. This isn't a good option if you have doubts about the house or the location.<img src="https://assets.site-static.com/userfiles/584/image/two_business_men_cross_sign.jpg" width="400" height="300" alt="which way" style="float: right;" />
If you don’t always pay your rent on time. Not paying on time every month might mean you lose the extra money paid in rent that month.
Rent-to-Own Contracts
There are two main types of <a href="https://www.cincinkyrealestate.com/blog/alternative-ways-to-buy-a-home-without-a-mortgage/">rent-to-own contracts</a>:
Lease option agreement
You must pay an option fee, and the price will be decided when the lease expires. An appraisal is usually used to determine the price at the end of the lease. You don’t have to buy the home when the lease expires.
Lease purchase agreement
This obligates you to purchase the home at the end of the lease for a price that might be agreed upon at the start. This gives you more time to find the best mortgage, but if you don’t buy, the seller could sue you for breaching the contract.
Final Thoughts on Rent-to Own-Homes
<a href="https://realtybiznews.com/renters-prepare-homeowners/98756778/" target="_blank">Going from a renter to a homeowner</a> can be exciting, but you must be well-prepared. There is more to meet the eye regarding the financial ramifications of homeownership.
It can be a costly mistake to jump into the real estate market before you're ready. Make sure you have a significant emergency fund before moving forward. When you least expect it, a problem could devastate your finances.
Additional Resources
<a href="https://merrimackvalleymarealestate.com/spot-rental-scams-on-craigslist/" target="_blank">Rental Scams To Be On The Lookout For</a> - When it comes to renting a place to live the scammers are more than willing to make someone believe they have the best place for rent at a great price. Always be skeptical and make sure you see in person the place you will be renting.
<a href="https://frederickrealestateonline.com/rent-vs-buy-housing-affordability/" target="_blank">Rent or Buy?</a> - Depending on where you want to live and how long you plan to live there the rent or buy decision is something to consider. Especially in an area where it is cheaper to rent doing so may be a wise move.
<a href="https://www.realestatemortgageblog.com/home-buyers/avoid-buyers-remorse/" target="_blank">Avoiding Buyers Remorse</a> - Don't buy a home that you will regret in the end. A home buyer should be understanding everything about the home buying process before making an offer.
About the author: The above article “What Does Rent to Own Mean in Real Estate?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Rent_to_Own_PIN.jpg" width="1000" height="1500" alt="What Does Rent to Own Mean in Real Estate?" />2023-06-15T04:00:00-07:002023-06-14T17:07:20-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:21021What To Know About Remodeling A Bathroom<img src="https://assets.site-static.com/userfiles/584/image/Remodel_Bath.jpg" width="535" height="647" alt="Bathroom Remodel" style="display: block; margin-left: auto; margin-right: auto;" />
What To Know About Remodeling A Bathroom
Remodeling a bathroom can add some freshness to a home and increase the utility of the bathroom when done right. When done wrong a bathroom remodel can make things look and run worse. The bathroom needs to be functional otherwise there will be no benefit for the remodel. The tips in this article provide homeowners with some smart tips on how to properly remodel a bathroom.
Try Not to Take Away Bathroom Space
Taking away bathroom space by either adding in large fixtures like cabinets and showers or taking away bathroom space for other rooms can quickly turn a bathroom remodel into a disaster. Bathrooms are usually made smaller compared to other rooms and taking away space from an already small bathroom will not result in a positive return on investment even if the space is used someplace else. Tiny, cramped bathrooms are more likely to turn off future buyers. If a bathroom is already on the smaller size then best bet is to remodel without taking away any useable space from it.
Adding or Removing a Shower/Tub
If the bathroom has enough space to add a shower or a tub where none is currently present this may or may not help the home value. Some home buyers still expect there to be a half bath where there should be one and where there are already plenty of full baths in the home. On the other hand, where a home has fewer baths as it is, adding a shower/tub to a half bath can improve the<img src="https://assets.site-static.com/userfiles/584/image/faucet2.jpg" width="400" height="300" alt="faucet" style="float: right;" /> value of a home. Where a home goes from one and a half bath to two full baths more buyers will appreciate that gain of a full bath since it boosts the utility of the home. Be sure to check out if a permit is needed. <a href="https://www.cincinkyrealestate.com/blog/permit-for-home-improvement/">Doing the work without a permit could lead to problems down the road</a>.
Of course, placement of the full bath along with a bedroom is key. Adding a shower to a half bath in the basement where no one is expected to sleep will not add much value especially when all the bedrooms are on the second floor. In that situation it would be best to stick to the straight bathroom remodel/update of updating the fixtures, flooring and walls and not add a shower/tub into the mix.
Taking away a shower/tub can also be a turn off for buyers. Generally, a home should have at least one bathtub to help it retain its appeal to those families with young children. Getting rid of the only bathtub to install a standing only shower can also result in reduction in value of the home. Also if a home happens to have a full bath that is never used, converting that bath to a half bath to get back some extra space may seem like a neat idea but when it comes time to sell the house, potential future buyers are not likely to be impressed with a home that has one less full bath than it should.
Certainly not everyone is planning to sell their home right after a remodel, but the fact that it probably will be sold at some point in the future should be a consideration when making any major remodeling changes. A homeowner may need to sell due to change in employment, change in life circumstances or something else. There is no need to potentially restrict the sale in the future. Consult with local home contractors and/or interior designers to make sure the remodel work will not hurt the bottom line.
What Kind of Updates to Make
So what kind of updates should a homeowner be making to see a positive return on investment? Doing a cosmetic update can help but it depends on the overall age of the bathroom. If the bathroom has not received any updates since the home was built a cosmetic update will not do much. Cosmetic updates can be done by the homeowner on their own and include things like updating cabinet hardware, painting the bathroom, installing back splashes, regrouting tile, switching out fixtures. Adding a few new things and a fresh coat of paint may not do much for a thirty plus year old bathroom.
A full remodel on the other hand involves pretty much <a href="https://www.cincinkyrealestate.com/blog/updates-for-the-home/">tearing out everything in the bathroom and starting with everything new</a>. New tiles, new cabinets, new lights, new fixtures (toilets, faucets, sink basin, etc.), new paint, new tub/shower. This type of project takes longer due to the extent of remodeling and can be quite messy since tearing out old tile and old fixtures will kick up a lot of dirt. While working on the full remodel if there are below surface things to address, such as slow drains, slow water flow, damaged/soft subflooring now is the time to fix those issues while the bathroom is bare.
With the full bathroom remodel one can keep everything where it already exists prior to tearing it out. Meaning the new toilet will be installed where the old toilet was, the new tub or shower will get put in where the old tub/shower was. Things can be moved <img src="https://assets.site-static.com/userfiles/584/image/man_holding_question_mark.jpg" width="400" height="600" alt="question" style="float: right;" />around to create a different look for the bathroom, but it will also cost more as the contractor will have to reroute water and drain lines to account for the moved fixtures. This will also add time to the project as well.
In Demand Updates
The in-demand updates for bathroom remodels include high end fixtures, bluetooth speakers, bright lighting, stone sinks, quartz countertops, luxury multi head showers, shower sitting areas and more. <a href="https://www.cincinkyrealestate.com/blog/tips-for-selling-luxury-home/">What type of update makes sense</a> for a bathroom depends on the homes in and around the home in question. High end homes mean high end updates will work. The primary (master bath) bath can always utilize nice upgrades to the shower, toilet, sink and more but the homeowner needs to keep in mind whether it makes financial sense to go all out on a bathroom remodel in terms of return on investment.
Final Thoughts
A bathroom remodel is a great way to breath some life into a home. It can help improve the value of a home when it is done right. When done wrong it can be an expensive and messy process that does not help the overall value of the home and can be worse in utility.
Additional Resources
<a href="https://frederickrealestateonline.com/bathroom-design-trends/" target="_blank">2023 Hot Bathroom Trends</a> - Check out some of the hot bathroom trends prior to doing your bathroom remodel.
<a href="https://www.maxrealestateexposure.com/problems-buying-old-house/" target="_blank">Problems Associated With Old Homes</a> - Old homes have their own challenges and knowing what to expect when working on a bath remodel can help save time and money.
<a href="https://wellingtonhometeam.com/best-bathroom-remodeling-guide-for-2023/">Bathroom Remodel Guide</a> - Learn what you need to tackle when updating a bathroom.
About the author: The above article “What To Know About Remodeling A Bathroom” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Remodel_Bath_PIN.jpg" width="1000" height="1500" alt="remodel bathroom" />2023-06-08T04:00:00-07:002023-06-07T16:26:22-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20995May 2023 Greater Cincinnati Multifamily Market ReportThe 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.
<img src="https://assets.site-static.com/userfiles/584/image/May_2023_Multifamily_Real_Estate_Market_Reduce.jpg" width="6000" height="3500" alt="May 2023 Greater Cincinnati Multifamily Report" />2023-06-01T08:30:00-07:002023-06-01T07:56:59-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20994May 2023 Luxury Real Estate Market ReportMore homes have sold as the weather has warmed up and as well more luxury homes have been listed for sale in the Greater Cincinnati area. We should see a bit of a slow down in sales as people leave town for summer vacations. Mortgage rates have moved back into the 7% range for conventional mortgages. Jumbo mortgage rates are in the 6-7% range as well.
<img src="https://assets.site-static.com/userfiles/584/image/May_2023_RE_Lux.jpg" width="9000" height="6400" alt="Greater Cincinnati Luxury Real Estate Market Report May 2023" />2023-06-01T08:00:00-07:002023-07-26T13:33:42-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20954Do You Need A Permit For That Home Improvement?<img src="https://assets.site-static.com/userfiles/584/image/Permit_Need.jpg" width="535" height="635" alt="Do You Need A Permit" style="display: block; margin-left: auto; margin-right: auto;" />
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 not areas where one should take shortcuts to get a discount. Bad electrical wiring can start fires, plumbing leaks can cause <img src="https://assets.site-static.com/userfiles/584/image/construction_worker.jpg" width="400" height="267" alt="construction work" style="float: right;" />mold and wood rot, poorly installed HVAC systems can mean much higher heating/cooling bills and unhealth air being pumped throughout the home. A permit inspection is basically another set of eyes on the project to make sure things are done properly and safely.
Insurance companies can deny coverage and even refuse to payout insurance claims if the unpermitted work results in damage that normally insurance would pay for. For instance, an electrical fire starts and burns part of the home down. If the homeowner was the one who had the work done without a permit the insurance company can deny the claim and cancel further coverage. Lack of homeowners insurance can be grounds for default on the terms of the mortgage which usually require a homeowners insurance policy.
If the home is listed for sale and the buyer is aware of the home improvements, they may ask about permits for the improvements made. Home inspectors also are aware of the local permit process and know which things do require permits and which don’t and can point out to potential buyers the need to ask if permits were requested. Some buyers may not want to buy a home that has unpermitted improvements. The quality and safety of those improvements may be in question. Additionally, if it is discovered later by the local permitting authority that permits were never applied for, whoever owns the property at the time will be the one who must deal with the consequences.
When appraisers look at the home for appraisal value, either for the purpose of selling the home or for a mortgage refinance, unpermitted work might not be accounted for in the appraised value of the home. Since the home improvement is technically illegal without the permit it could negatively impact the home value wise which will put a home purchase or mortgage refinance in jeopardy. How an appraiser will treat unpermitted work will depend on different factors and every situation will be different.
Even if an appraiser can value an unpermitted home improvement that does not mean the mortgage lender won’t have an issue. Every mortgage lender is different and have different underwriting rules to provide a mortgage under. If an insurance company refuses to insure a home with an unpermitted improvement that right there will stop a mortgage from being issued on the home.<img src="https://assets.site-static.com/userfiles/584/image/pointing_to_insurance.jpg" width="400" height="267" alt="insurance " style="float: right;" /> Unpermitted work flagged on an appraisal report can be an issue for underwriting which will cause the lender to reach back out to the buyer and require them to get proof of permits as a condition to close the loan.
Permits Should Be Obtained
Not getting a permit sets the homeowner or home seller up for a risky gamble that no one will catch it and everything will be fine. This also presumes that the work is done properly and safely and no damage or injuries will occur. The best way to avoid any future headaches is to make sure that work that needs permitting is done with the permit process.
Final Thoughts
A lack of a permit for work that requires a permit can put a homeowner in a tough situation. The lack of a permit can impact the insurability or the ability to refinance or sell them home. The permit process also helps check for work that is safe and up to code.
Additional Resources
<a href="https://massrealestatenews.com/sell-home-unpermitted-construction/" target="_blank">No Permits When Selling a Home</a> - Learn about some of the options a home seller has when they want to sell a home that does not have the proper permits for home improvements.
<a href="https://www.realestatemortgageblog.com/home-sellers/home-selling-mistakes/" target="_blank">Expensive Mistakes That Some Home Sellers Make</a> - These mistakes can end up costing home sellers lost money and lost time when the home does not sell. Avoid these mistakes prior to listing a home for sale and the seller will be in a better position.
About the author: The above article “Do You Need A Permit For That Home Improvement?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Permit_Need_PIN.jpg" width="2000" height="3000" alt="permit" />2023-05-25T04:00:00-07:002023-05-24T20:15:21-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20933Common Seller Mistakes That Will Result In An Unsold Home<img src="https://assets.site-static.com/userfiles/584/image/Common_Seller_Mistakes.jpg" width="535" height="635" alt="Common Seller Mistakes That Will Result In An Unsold Home" style="vertical-align: middle;" />
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. <a href="https://www.cincinkyrealestate.com/blog/home-wont-sell/">The longer a home sits on the market</a> the more the homeowner will need to take a deep look at what the price really should be.
With inflation up, other costs like insurance and property taxes are up as well. Many home buyers who buy with the use of a mortgage will have their prorated insurance and tax payments included in their monthly payment. The seller may have a lower tax payment as the value is based on when they bought it, but when the new buyer takes ownership the value of the home will be adjusted upwards with the taxing authority which will result in tax payment increase. If a seller finds their home is not selling they need to consider at what price point will buyers be interested in light of higher interest and higher tax/insurance costs.
Restricting Showings
Showings are an important part of the home selling process. The showing time is when the buyer gets to come into the house and kick the tires so to speak. This is when the buyer will decide whether they love the house or want to keep looking. By making it difficult for buyers to come in and view the house the seller is reducing the pool of buyers. The buyers who were not able to see <img src="https://assets.site-static.com/userfiles/584/image/Woman_w_Stop_Hand.jpg" width="400" height="267" alt="woman with stop hand" style="float: right;" />the house due to the seller making it difficult may not come back again or they may find another home they decide to make an offer on.
The goal when listing a home for sale is getting it sold. In order to sell the house, the seller needs to get enough buyers through where at least one offer is received. Sometimes all it takes is one buyer, other times multiple buyers need to be able to visit the home in order to get just one offer. By restricting showings, the seller is limiting their own ability to get an offer.
Failing To Depersonalize
Part of allowing a buyer to fall in love with a home is to make sure it is as much of a blank slate as possible. The buyer needs to be able to come in and visit a house and imagine themselves in the home. Too much personalization left in the home during the listing period means the buyer will not be able to imagine themselves in the home but instead will see the seller as they lived in the home.
Things to depersonalize in a house include family photos, unique collectibles, personal craft items and more. Anything that shows the personality of the current owner should be put out of sight so it can be out of mind for the buyer. The home being a neutral slate allows the buyer to see the home for what it is and how they will live in it.
Failing to Keep House Clean
Just as letting buyers in to view the home is important, keeping the home as clean as possible is also a must for the home seller. Buyers coming to view the home need to be able to imagine themselves in the home. Anything such as dirty floors, pet and other general odors, dirty appliances, dusty windows and cobwebs serve as a distraction for the buyer. The buyer will be more likely to focus on the unclean aspects rather than how they like the home. While keeping up on cleaning of the home while listed for sale can be challenging it will pay off sooner as buyers will be more likely to submit and offer on a home they like.
Failing to Make Repairs
If the home seller knows about certain problems in the house, they should get those problems repaired before the first buyer walks through the door. The seller should take care of both the obvious and the non-obvious repairs. Things that obviously need repairing like cracked windows, leaky faucets/plumbing, broken doors and more will be a big red flag for buyers. Failing to fix <img src="https://assets.site-static.com/userfiles/584/image/Man_with_drill.jpg" width="400" height="602" alt="man with drill" style="float: right;" />readily seen problems will make the buyer wonder why the homeowner has not kept up the home and what else may be hidden below the surface.
Ignoring the non-obvious issues can also lead to problems after an offer has been accepted. While the buyer may not have noticed the problem on the first walkthrough, the home inspection is likely to discover the problems. Then will come the time for the buyer to request repairs if they want to continue on with the purchase. Similar with the obvious repairs, if they buyer finds out about some non-obvious repair and that was something the seller should know about, the buyer may get wary about the overall condition of the home. Losing a buyer under contract can make it harder for the seller to find another buyer at the current listing price.
Failing to Negotiate
Buying and selling a house is a give and take proposition. A seller thinking they are 100% in the drivers seat and refusing to negotiate with the buyer may find themselves with few if any buyers who want to proceed that way. Even when the market is strongly in favor of sellers there will come times during the transaction where the <a href="https://www.cincinkyrealestate.com/blog/negotiating-post-inspection-repairs/">buyer and seller may need to negotiate </a>some matter. As the market shifts either to a more balanced or more buyer favored market then the seller must be ready to work for those buyers who are ready to put in an offer.
Final Thoughts
Home sellers need to avoid the major pitfalls associated with selling a home. Even one missed step can result in the home seller walking losing a good offer. Buyers are being more selective with their home purchase these days due to higher pricing and higher mortgage interest rates.
Additional Resources
<a href="https://www.maxrealestateexposure.com/24-hour-notice-home-harder-sell/" target="_blank">24 Hour Showing Restrictions and Selling a Home</a> - Requiring 24 hour notice prior to letting a buyer in to view a home will add unnecessary time to buyers and can result in a lost offer. Home sellers should be making it as easy as possible for buyers to come and view the home.
<a href="https://merrimackvalleymarealestate.com/what-is-home-staging-and-what-is-it-not/" target="_blank">Should You Stage Your Home?</a> - Staging a home does not mean turning an existing home into a brand new home. Home staging is about improving the look and flow of a home so buyers can better appreciate it.
<a href="https://www.realtor.com/advice/sell/habits-of-highly-effective-home-sellers-today/" target="_blank">7 Strategies the Successful Home Seller Uses</a> - Seven great tips for home sellers to help get a successful sale.
<a href="https://birminghamappraisalblog.com/faqs/what-is-the-role-of-market-trends-in-a-real-estate-appraisal/" target="_blank">Real Estate Trends and the Home Appraisal</a> - Real estate trends, like mortgage interest rates, are taken into consideration on the appraisal.
About the author: The above article “Common Seller Mistakes That Will Result In An Unsold Home” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Common_Seller_Mistakes_PIN.jpg" width="2000" height="3000" alt="Common Seller Mistakes That Will Result In An Unsold Home" />2023-05-11T04:00:00-07:002023-05-10T13:14:17-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20910April 2023 Greater Cincinnati Multifamily Market ReportThe 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.
<img src="https://assets.site-static.com/userfiles/584/image/April_2023_MF_Report.jpg" width="12000" height="7000" alt="April 2023 Multi-Family Report" />2023-05-05T04:00:00-07:002023-05-04T18:57:56-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20909April 2023 Luxury Real Estate Market ReportDays 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.
<img src="https://assets.site-static.com/userfiles/584/image/April_2023_RE_Lux.jpg" width="9000" height="6400" alt="April 2023 Greater Cincinnati Real Estate Luxury Market Report" />2023-05-05T04:00:00-07:002023-05-04T18:33:47-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20777Negotiating Post Inspection Repairs<img src="https://assets.site-static.com/userfiles/584/image/Negotiate_Post_Inspection.jpg" width="535" height="635" alt="Negotiating Post Inspection Repairs" style="display: block; margin-left: auto; margin-right: auto;" />
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 tell the seller they will proceed under the contract as written and will not be requesting any repairs. By proceeding with the home purchase and buying it as-is that does not mean the buyer is giving up any rights they may have. Certainly, for known conditions the buyer understands they are buying the home as is. If there are conditions that a home inspector and/or buyer are not <img src="https://assets.site-static.com/userfiles/584/image/Captured_man.jpg" width="300" height="198" alt="captured" style="float: right;" />reasonably able to find, that is there are latent defects, and the seller knows about those defects. The seller could be held liable if they did not disclose those latent defects to the buyer. If a buyer suspects latent defect issues in the home being discovered after closing, they should consult with a local real estate attorney to determine what options they may have.
If the seller refuses to make any repairs, then the buyer has to take the home in as-is condition or walk away from the purchase. Whether the buyer can walk away depends on the terms of the purchase contract. Depending on the cost of the repairs and whether or not the seller is willing to reduce the price to account for the repairs, the buyer needs to weigh the pros and cons of taking the home as-is. The buyer could help make that determination better by having professional contractors come and provide estimates on the repairs needed. If more time is needed to have professionals inspect certain problem areas the buyer and seller will need to agree on extending the inspection period.
Seller Agrees To Make Some or All Repairs
If the seller agrees to make all of the repairs then the buyer should be happy with that outcome unless of course the buyer prefers to have the repairs done by their contractor of choice as noted below. If the buyer wants to make the repairs then they should state this upfront when sending the repair request to the seller. Included in that request should be any requests such as reduction in price or closing credit. The buyer can also ask the seller to have repairs done by contractors chosen by the buyer but the seller could reject that. These types of negotiations depend on whether it is a buyer’s market or a seller’s market, how long the house has been on the market and a few other factors.
If the seller is only agreeing to do some of the repairs the buyer will have to agree to this change to the repair request. Buyers should remain reasonable with the repairs requests and items that are not safety related might not be the best requests to ask for, especially when safety related repairs are a bigger concern. Depending on the terms of the original purchase contract the buyer may or may not be able to use minor repair issues as a reason to cancel the contract. Major repair issues on the other hand (such as mold, foundation issues, severe plumbing problems and more) can impact the ability of a home to be livable, to obtain insurance and/or to get financing for.
Buyer Agrees to Make Repairs
Depending on the type of repairs needed the buyer may prefer to have the repairs done themselves as they can then control who performs the repairs. While the buyer can ask the seller to have the repairs performed and include language in the repair request that the repairs be performed by licensed contractors (when required for things like electrical, HVAC, plumbing) or be done by professional contractors (when licensing is not a requirement) that still does not guarantee a good job. The cheapest contractor may not always be the best contractor, but the seller has an incentive to use the cheapest contractor possible since they are trying to save money as well on a home they are soon to move out of.
The buyer as part of the inspection request can request a price reduction or request a credit back upon closing so they can handle the repairs with contractors of their own choosing. If the repairs required are of the nature that need to be done sooner rather than later then the buyer may not have the luxury of waiting to have the repairs done. Things like leaking plumbing, pest issues <img src="https://assets.site-static.com/userfiles/584/image/hand_holding_watch.jpg" width="400" height="472" alt="time is of the essence" style="float: right;" />(termites), and more if not treated right away can lead to a more expensive headache later.
Other things like the HVAC need to be functional in the extreme cold or extreme hot months and waiting to make those repairs may not make sense either. In those situations the buyer has to weigh the need for getting the repairs done based on their choices or letting the seller arrange for the repairs. The buyer should be requesting copies of the repair invoices be shared with them and prior to closing the buyer should walk the home to check the overall condition and verify repairs were properly made.
Final Thoughts
A home inspection is an important thing for a buyer to have performed after they enter into a contract to buy a home. Once the inspection is done it is up to the buyer and seller to negotiate any needed repairs. The buyer and sellers have options when it comes to agreeing to who does the repairs and careful attention should be paid when having repairs done.
Additional Resources
<a href="https://www.maxrealestateexposure.com/problems-buying-old-house/" target="_blank">Common Problems Associated With Older Homes</a> - When buying an older home the buyer should keep in mind certain things that need to be looked at closely. These areas could be a deal breaker and cause issues with obtaining financing and insuring.
<a href="https://merrimackvalleymarealestate.com/first-time-home-buying-mistakes/" target="_blank">Home Buying Mistakes That Will Cause Pain</a> - Buying a home is usually one of the most expensive purchase in the lives of many. Doing it wrong and making mistakes will result in loss of money and this article provides some mistakes to avoid like not inspecting, poor negotioations and more.
<a href="https://brotherlyloveproperties.com/how-to-prepare-home-inspection/" target="_blank">How To Get Ready For A Home Inspection</a> - A seller can make the home inspection process go much easier by preparing ahead of time. Trying to hide things or unintentionally hiding things through clutter will end up backfiring on the seller.
About the author: The above article “Negotiating Post Inspection Repairs” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Negotiating_Post_Inspec_PIN.jpg" width="2000" height="3000" alt="negotiate pin" />2023-04-20T04:00:00-07:002023-04-19T15:33:01-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20772March 2023 Greater Cincinnati Multifamily Market ReportThe 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.
<img src="https://assets.site-static.com/userfiles/584/image/March_2023_MF_RE_Report.jpg" width="12000" height="7000" alt="March 2023 Greater Cincinnati Multi-Family Report" />2023-04-19T06:30:00-07:002023-04-19T06:27:24-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20771March 2023 Luxury Real Estate Market ReportMedian price has gone up from F<a href="https://www.cincinkyrealestate.com/blog/february-2023-luxury-real-estate-market-report/">ebruary 2023</a> 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.
<img src="https://assets.site-static.com/userfiles/584/image/March_2023_RE_Lux.jpg" width="9000" height="6400" alt="March 2023 Greater Cincinnati Luxury Real Estate market Report" />
<a href="https://mishtalk.com/economics/housing-starts-and-permits-slide-in-march-as-mortgage-rates-head-higher" target="_blank">Housing Starts and Permits Drop in March</a> - There were some revisions to the February numbers but higher rates are causing things to slow down in the new construction home market.2023-04-19T04:00:00-07:002023-04-19T06:23:13-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20726How Do Construction Loans Work And When Are They Best to Use<img src="https://assets.site-static.com/userfiles/584/image/New_Con_Loan.jpg" width="535" height="635" alt="How Do Construction Loans Work And When Are They Best to Use" style="display: block; margin-left: auto; margin-right: auto;" />
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 <a href="https://www.maxrealestateexposure.com/construction-loan-work/" target="_blank">getting a loan for construction</a>. 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.<img src="https://assets.site-static.com/userfiles/584/image/house_on_scale_with_money.jpg" width="400" height="600" alt="house on scales" style="float: right;" />
Once the loan is approved, the money is typically disbursed to the borrower in stages. These stages are called “draws” and typically correspond to different stages of the home-building process.
For example, a new construction lender may release the first disbursement of funds when the lot is cleared, and the foundation has been installed. They may distribute another round of funding when the framing is completed.
These draws will continue until the project is completed.
The borrower can use the money from each draw to pay for materials and labor for their home-building project. Once the loan is paid in full, the borrower will own their new home.
Construction loans also typically require the borrower to have some type of collateral, such as land or another asset. This provides the lender security in case the borrower defaults on the loan.
Construction loans can be a great way for borrowers to finance the cost of building a new home. However, it is important to be aware of the risks associated with taking out a construction loan, such as the possibility of delays in construction or other unforeseen costs.
Borrowers should also compare loan options to find the best terms and rates.
Construction Loan vs. Land Loan
Construction and <a href="https://www.cincinkyrealestate.com/blog/what-is-a-land-loan-and-how-do-they-work/">land loans</a> are two types of financing used to cover property acquisition. A construction loan is best suited for those who want to start building their home immediately, while a land loan is better for those who plan on starting construction later.
A land loan allows borrowers to purchase a plot of land to build a home on it in the future. A land loan is typically longer-term, often up to 30 years, and allows borrowers to purchase land immediately without the pressure of building right away.
The loan amount is typically based on the estimated value of the land.
When deciding whether to get a construction or land loan, borrowers should consider their timeline and financial situation. A construction loan may be the best option when you're ready to <a href="https://original.newsbreak.com/@massrealty-1600066/2964531411183-what-to-know-about-buying-new-construction-in-massachusetts" target="_blank">start building a house</a> immediately.
A construction loan allows you to finance the cost of the land and the building construction costs in one loan.
What Are The Financial Requirements of a Construction Loan?
To qualify, you will need a credit score of more than 620 with construction loan lenders.
Expect that 45 percent will be the cut-off limit for your debt-to-income ratio.
It is likely you will need to have a 20 percent down payment.
Like any other property, the home must be <a href="https://www.cincinkyrealestate.com/blog/what-is-an-appraisal-gap-clause/">appraised for at least the purchase price</a>.
What Documents Will You Need to Provide a Construction Loan Lender?
You must provide the lender with several documents to obtain a construction loan.
The lender will want a contract with the builder, the builder's license, construction drawings and specifications, and a breakdown of the construction cost.
The contract should outline the project's scope, timeline, and cost estimates. The builder's license demonstrates they are qualified to complete the project per local building codes.
The construction drawings and specifications give the lender a detailed description of the project and its expected completion.<img src="https://assets.site-static.com/userfiles/584/image/construction_worker.jpg" width="400" height="267" alt="construction" style="float: right;" />
Finally, the cost breakdown should include materials, labor, and any other expenses associated with the project. All this information will help the lender determine if the loan suits the borrower.
How Do You Get a Construction Loan?
Several ways to get a construction loan include applying online and meeting with lenders in person. Researching different lenders and comparing their terms and rates is essential before deciding.
Some of the best construction loan options are local banks familiar with the community. There are lenders who specialize in construction loan financing and advertise as such.
Final Thoughts on Construction Loans
When you would like to build your own home, a construction loan is a primary choice for most borrowers.
Researching and understanding the process before committing to a lender is crucial. Patience is a virtue when it comes to loans for construction. Best of luck with your home-building project!
Additional Resources
<a href="https://fhalenders.com/first-time-home-buyer-construction-loan/" target="_blank">First Time Home Buyer Construction Loans Tips</a> - Buying a new construction home for the first time can be rewarding an challenging. Learn about the construction mortgage and how it can help buyers get the home of their dreams.
<a href="https://springshomes.com/blog/buying-new-construction-how-can-a-realtor-help/" target="_blank">How a Realtor Can Help You Buy a New Construction Home</a> - Having a real estate agent navigate the process of buying a new home can save time and headache. Real estate agents understand the process of buying a home and the contracts involved.
About the author: The above article “How Do Construction Loans Work And When Are They Best to Use” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/New_Con_Loan_PIN.jpg" width="1000" height="1500" alt="new construction loan mortgage" />2023-04-06T04:00:00-07:002023-04-05T17:42:58-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20678What to Know About Adding Solar Panels to Your Home<img src="https://assets.site-static.com/userfiles/584/image/Solar_Panels_Home.jpg" width="535" height="635" alt="What to Know About Adding Solar Panels to Your Home" style="display: block; margin-left: auto; margin-right: auto;" />
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 <a href="https://www.maxrealestateexposure.com/solar-power-selling-buying-home/" target="_blank">does solar panels increase home value</a> 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 <a href="https://www.cincinkyrealestate.com/blog/solar-panels-install-house/">install solar panels on their homes</a>. 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.<img src="https://assets.site-static.com/userfiles/584/image/scale_with_home_and_piggy_bank.jpg" width="400" height="541" alt="home on scales" style="float: right;" />
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 more energy efficiency in homes should result in higher prices for home sellers that have made this investment.
Things That Can Affect the Value of Solar Homes
It isn’t always the case that putting solar panels on your roof will automatically increase its value by the same amount.
Let's look at the issues that can vary the benefit you'll see from solar power.
Electricity Bills
Solar panels will benefit home values in parts of the country with higher electricity rates. In those parts of the country, generating your own power will be worth more to buyers.
Homes in California, New York, Texas, and Connecticut suffer from higher electricity costs, so lowering bills will be more valuable there.
In areas of the country where electricity costs are not as high, the saving won't be as great.
Solar Markets
Some states are doing more to promote solar power with laws and incentives for homeowners. There is a greater chance of selling a home with solar panels for a higher value in states pushing solar conversion.
In 2022, these were the best solar markets based on capacity:
* California<br />* Texas<br />* Florida<br />* North Carolina<br />* Arizona<br />* Nevada<br />* Georgia<br />* New Jersey<br />* Virginia<br />* New York
Owning the Solar Panels
You must own the panels if you want to sell your home and expect it to increase its value. There are financing options for solar panels, but if you choose to lease instead of buy them, this will need to be dealt with before selling the home.
Transferring the lease to the new owner could be possible, though this will complicate the sale. It might be better to buy out the lease, though this might mean a large fee depending on how recently you took it out.
The Location of The Solar Panels
When adding value to a home, there is a big difference based on the placement. If you add solar panels to your house, you want them in the back ideally. Of course depending on the position of your home putting the solar panels in back may not be the best placement. In order to get the best possible power output the solar panels need to be placed where they will get the most hours of direct sun exposure.
Let's face it, solar panels are not attractive to look at. Nobody wants to drive up to a home with stunning curb appeal only to be distracted by ugly solar panels on the roof.
It is a total turnoff for many buyers. It is even worse for luxury buyers who aren't so concerned about saving an insignificant amount of money to them.
The Condition of the Solar Panels
Solar systems have a limited lifespan of between 25 and 35 years. Older systems nearing the end of their useful life will add less value to the home and in fact can be a negative especially the efficiency is considered poor compared to today’s solar panels.
If the system isn’t maintained, it will also add less value. Solar power systems need maintenance to keep operating to their full potential. Better panels will have long warranties that should be used to fix any defects they develop.
Workmanship warranties deal with errors during installation, and you might also have a production guarantee that ensures a certain power output throughout the system's life. Make use of these to keep the system in perfect condition.
When buying a home with solar panels, check the documentation, warranties, and maintenance records. This should reveal how well the system has been cared for and what repairs or upgrades have been completed.<img src="https://assets.site-static.com/userfiles/584/image/Investment.jpg" width="400" height="267" alt="investing in your house" style="float: right;" />
Will Solar Panels Increase Property Taxes?
While they will increase the value of your home, that doesn’t always mean you will pay more in property taxes. It will depend on the location of your home.
Solar panel installations are permitted projects, so the city or town will know about this improvement. It is possible that <a href="https://original.newsbreak.com/@massrealty-1600066/2830405471111-assessed-value-vs-appraised-value-for-massachusetts-homes">your assessed value could be raised</a> a bit because of this addition to your property.
Final Thoughts
Solar panels will reduce energy bills and give you clean energy for decades. They will increase the value of your home, but they do need to be maintained if you want to maximize the benefit.
If you are planning the addition of a solar system to your home, you should get quotes from multiple suppliers to compare costs.
The quality of the panels and the warranties provided should also be compared. How you finance the cost of the system can also affect how easy your home is to sell later on.
Additional Resources
<a href="https://www.pacificalocals.com/blog/solar-panels" target="_blank">Solar Panels Leasing vs. Buying</a> - Homeowners have the option to buy or lease solar panels that are installed on their home. There are pros and cons to each as this article explores. The homeowner should understand all the aspects with each option before entering a long term committment.
<a href="https://merrimackvalleymarealestate.com/selling-your-home-with-solar-panels/" target="_blank">Selling a Home With Solar Panels</a> - When it comes time to sell a home that has solar panels the owner needs to be prepared to provide documentation to potential buyers so they can be assured they are getting a good system and not one that has been neglected.
About the author: The above article “What to Know About Adding Solar Panels to Your Home” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Solar_Home_PIN.jpg" width="1000" height="1500" alt="solar for your home?" />2023-03-23T07:30:00-07:002023-03-23T07:53:13-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20661Storage Unit Rental Guide<img src="https://assets.site-static.com/userfiles/584/image/Storage_Rental_Guide.jpg" width="535" height="635" alt="Storage Unit Rental Guide" style="display: block; margin-left: auto; margin-right: auto;" />
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 <a href="https://www.cincinkyrealestate.com/blog/things-to-consider-before-downsizing/">downsize your house</a> 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 <a href="https://www.maxrealestateexposure.com/buying-house/" target="_blank">buying a new home</a> 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 required.<img src="https://assets.site-static.com/userfiles/584/image/Full_Garage_Reduced.jpg" width="400" height="267" alt="full garage" style="float: right;" />
Types of Self-Storage Units
Self-storage units come in two types generally. Climate controlled and non-climate controlled. With climate-controlled units the units are kept at a stable temperature year-round regardless of the outdoor temperature. Especially if one is storing unique art, special furniture, musical instruments or something else that requires a stable environment then a climate-controlled storage unit is a better choice.
These climate-controlled storage units generally try to maintain a stable temperature and control the humidity. Humidity can cause all sorts of issues like wood rot, mold, moisture damage and more. By keeping humidity to acceptable levels items that are sensitive to high humidity can be preserved for longer. Climate controlled storage units will cost more than a non-climate controlled one.
Even though the units are climate controlled that does not mean the temperatures would be kept at the typical room temperature comfortable for humans. Generally these climate controlled storage facilities will set temperatures to an optimal temperature to help keep things stable and humidity down. If certain items to be stored need a particular temperature that must be kept with very little change then that needs to be discussed with the storage facility. Not all storage facilities with climate control are able to maintain that level of control of the temperature and a specialized storage company would be necessary.
Storage Unit Security
Most storage units offer some basic security in the form security gates with code access, 24-hour camera surveillance, capability of double locks and more. Depending on what one needs to store if more security is needed then storage facilities with better security should be sought. There are some storage facilities that the only security they offer is the lock that is on the storage unit itself. There will be no entry gate, perimeter security fencing might be limited so it pays to visit storage facilities to check out what type of security measures they have implemented.
Storage Unit Sizes
Storage unit sizes will vary by location as some storage unit facilities may only have smaller units depending on the needs of the local population and the size of their lot. Typically you will find the following sized storage units:
5’x5’
5’x10’
10’x10’
10’x15’
10’x20’
10’x30’
There may be different sizes as well other than the ones listed above depending on the company that offers the storage.
Which size of unit is needed depends on what is being stored. The largest of units can store the contents of a number of rooms in a home providing it is packed properly. One can’t simply take the entire contents of a home and expect them to fit in a storage unit without any adjustment. Things need to be packed in boxes, furniture needs to be disassembled, delicate items put on top and heavier items on the bottom. If access to certain items is needed whoever is doing the packing of the storage unit needs to know so they can fill the unit accordingly.
Storage Unit Location May Matter
If the storage unit is needed so the user can rent and store stuff while they live out of state or out of country then location is not really important as once the items are stored they usually will not be touched until back from the out of town stay. Whereas on the other hand where one is renting since they don’t have enough storage where they live then being close by the storage facility can be good especially if access is needed on a regular basis. One should drive the location to see how easy it is to access and is the location convenient to get to if it is important to have quick and regular access.<img src="https://assets.site-static.com/userfiles/584/image/magnify_dollar_sign.jpg" width="400" height="267" alt="money savings" style="float: right;" />
Storage Unit Pricing
Storage unit pricing will depend on location and on the size of the unit. Rates are usually charged by the month and as noted below insurance will usually be extra. When opting for temperature-controlled storage units the prices in general will be higher than the equivalent sized non-temperature-controlled units. For the smaller units prices start in the $50-$75 dollar per month range and go up. On the upper end of the sizes the prices can be $150 per month and up for larger storage units
Storage Unit Insurance
While the storage facility is usually insured for their own equipment and facilities most storage units will charge extra for insurance if the storage unit renter is not bringing their own insurance. In many cases storage facilities require insurance to be maintained as a condition of renting from them since it not only protects the belongings of the person renting the unit but other people storing stuff in and around the storage unit. A fire in one unit caused by improper storage of something can quickly destroy items in other units. By requiring insurance, the storage facility company can spread the risk of loss/damage to the individual renters.
Renters should check with their home renter’s insurance or their homeowner’s insurance to see if their rental unit would be covered either directly by the insurance policy or with a rider that adds coverage. Usually insurance provided by an existing policy will be more cost effective than what is offered by the storage rental company. If the storage rental company allows outside insurance it may save money in the long run.
Final Thoughts
Whether a storage unit is needed for personal household goods or for storing extra business equipment getting the right type of storage is important. Security and climate control features will vary between different facilities so it is wise to visit the units before committing to any particular one.
Additional Resources
<a href="https://merrimackvalleymarealestate.com/self-storage-rental/" target="_blank">What To Know About Self Storage</a> - Rent it right the first time in order to save money. The wrong storage unit can end up costing you money and through loss of personal items.
<a href="https://www.madisonmortgageguys.com/moving-hacks/" target="_blank">Super Moving Hacks</a> - Whem moving doing it right can help drop the stress level and make sure things get moved safely. Use the tips found in this article to make sure everything goes smoothly.
About the author: The above article “Storage Unit Rental Guide” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Storage_Rental_Guide_PIN.jpg" width="1000" height="1500" alt="storage unit guide" />2023-03-16T13:00:00-07:002023-03-16T12:57:58-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20631February 2023 Luxury Real Estate Market ReportWhile 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.
<img src="https://assets.site-static.com/userfiles/584/image/Feb_2023_RE_Lux_Small.jpg" width="9000" height="6400" alt="February 2023 Luxury Real Estate Market Report" />
<a href="https://wolfstreet.com/2023/03/01/recent-housing-hype-hoopla-already-fizzled-mortgage-applications-to-purchase-a-home-plunged-to-new-28-year-low/" target="_blank">Mortgage Applications Plunge</a> - 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.
2023-03-09T05:00:00-07:002023-03-07T18:36:13-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20630February 2023 Greater Cincinnati Multifamily Market ReportThe 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.
<img src="https://assets.site-static.com/userfiles/584/image/Feb_2023_MF_Market_Report_Reduced.jpg" width="6000" height="3500" alt="February 2023 Greater Cincinnati Multifamily Market Report" />2023-03-09T05:00:00-07:002023-04-19T06:23:57-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20611How Do Contingent and Pending Statuses Differ in Real Estate?<img src="https://assets.site-static.com/userfiles/584/image/Contingent_Pend.jpg" width="535" height="635" alt="How Do Contingent and Pending Statuses Differ in Real Estate?" style="display: block; margin-left: auto; margin-right: auto;" />
How Do Contingent and Pending Statuses Differ in Real Estate?<img src="https://assets.site-static.com/userfiles/584/image/Man_with_answers.jpg" width="400" height="606" alt="answers" style="float: right;" />
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 <a href="https://www.maxrealestateexposure.com/pending-contingent-home-sale/" target="_blank">difference between pending and contingent in listings</a> 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 <a href="https://www.cincinkyrealestate.com/idx/search-form/">Northern Kentucky MLS and Greater Cincinnati MLS</a> 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 <a href="https://original.newsbreak.com/@massrealty-1600066/2758627631137-reasons-homes-go-to-pending-status-in-real-estate" target="_blank">houses pending when contingencies are satisfied</a>.
Despite this, not every home that is pending will close. If you like a pending property, there is still a small chance that the home will return to the market.
Depending on the market situation, anywhere from just a few percent of pending sales up to more than 10% will fail.
Contingent Listings
When a home is marked as contingent, a contract has been signed between the buyer and the seller, but there are still conditions to meet.
This might mean that one or more contingencies could lead to the sale falling apart. These contingencies allow the buyer to cancel their purchase if something doesn't go as expected.
Even though contingencies are still to be completed, the sale is expected to close most of the time.
Common Contingencies
Market conditions often influence the contingencies in a real estate contrac<a href="https://www.cincinkyrealestate.com/blog/buyer-walk-away-from-contract-to-purchase-home/">t</a>. Some of the most common clauses are the following:
Home inspection contingency
Buyers are recommended to have the home inspected. The home inspection contingency lets the buyer back out of the contract should problems be found.
Often, repairs can be negotiated with the seller, but if this can’t be agreed upon, the buyer can get their earnest money deposit back and continue searching for their next home.
Buyers usually have 7-14 days after the real estate contract is signed to complete their inspection.
Home inspectors usually provide a copy of the inspection report within 24 hours of the inspection.
Home inspections are a common reason <a href="https://www.cincinkyrealestate.com/blog/buyer-walk-away-from-contract-to-purchase-home/">buyers walk away from a home purchase</a>.
Financing Contingency
Financing the home purchase isn’t always easy; things can go wrong even if the buyer has preapproval.
Including a financing contingency in the contract allows the buyer to back out if they don’t get the expected loan.
The financing contingency date is typically 3-6 weeks after an offer is accepted.
Appraisal Contingency
Lenders don’t want to risk losing money when they help a borrower buy their homes. An <a href="https://www.cincinkyrealestate.com/blog/what-to-know-about-the-home-appraisal-process/">appraisal shows the lender </a>that the home is worth what the buyer is offering to the seller.
The appraisal has to find the home is worth at least the buyer’s offer. If that doesn’t happen, the buyer’s options include funding the difference, renegotiating the price with the seller, or canceling the contract, thanks to this contingency.
The current real estate market usually determines what happens when there is an <a href="https://www.cincinkyrealestate.com/blog/what-is-an-appraisal-gap-clause/">appraisal gap</a>. In seller's markets, buyers often agree to increase their down payment.
In a buyer's market, the leverage is with a buyer. Often buyers can negotiate a lower price based on the appraisal.
Title Contingency
Title searches check the seller owns the home, uncovers liens, and finds other issues. Lenders usually require title insurance to protect their interests; the contingency protects the buyer’s deposit.
When title problems are discovered, a seller must correct them before closing can happen.
Are Offers Accepted on Contingent or Pending Listings?
It can still be possible to make an offer on a home that is either pending or contingent. Whether making an offer is possible depends on the seller and if they want to continue accepting offers.
Sometimes offers that the seller only accepts include contingencies if they can continue to take other offers. Though these are only backup offers, it ensures that the seller still has someone to buy their home, even if things go wrong with the first buyer.<img src="https://assets.site-static.com/userfiles/584/image/scale_with_home_and_piggy_bank.jpg" width="400" height="541" alt="scale" style="float: right;" />
If you want a pending or contingent home, ask your real estate agent to help you contact the seller. You might find that the seller does accept further offers.
If you want the home, making an offer will give you a chance at getting the property if the contract ends with the first buyer.
While your chances are relatively low, when a seller has a backup offer, they will be less inclined to renegotiate with their first buyer if things don’t work out.
Final Thoughts on Pending vs. Contingent
There are several listing "statuses" buyers, and sellers need to understand. Contingent and pending are two of the more essential ones. Check with a local real estate agent to determine if both of those statuses are used.
You should now better understand the difference between contingent vs. pending. When you are not sure about a listing status, make sure you ask your real estate agent for clarification.
Additional Resources
<a href="https://wellingtonhometeam.com/contingent-vs-pending-home-sale/" target="_blank">Contingent vs. Pending vs. Backup home statuses</a> - In this article a couple of the MLS home statuses for homes that have accepted an offer are explored.
<a href="https://dreamhomefinancing.com/home-buying-timeline/" target="_blank">Home Buying Checklist</a> - Before buying a home understanding the steps one needs to take to do it successfully is critical. Get a step wrong and it could cause a lot of stress.
About the author: The above article “How Do Contingent and Pending Statuses Differ in Real Estate?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Contingent_Pend_PIN.jpg" width="1000" height="1500" alt="How Do Contingent and Pending Statuses Differ in Real Estate? PIN" />2023-03-02T05:00:00-07:002023-02-28T19:40:52-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20586Should You Put Your Home Into An LLC?<img src="https://assets.site-static.com/userfiles/584/image/LLC.jpg" width="535" height="635" alt="Should You Put Your Home Into An LLC?" />
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 e<a href="https://www.cincinkyrealestate.com/blog/podcast-homeowners-insurance-investors/">nough insurance coverage</a> or other assets and were found liable in the accident described above their home could be used to help payoff any judgements against them. There is much more involved with this example, for instance many states have homestead exemptions which allow some or all of the value of the home to be excluded from being seized for a judgement (outside of mortgage foreclosure judgement by the first mortgage holder). Since itt varies state by state and situation by situation if a homeowner is being sued they should consult with a local attorney who specializes in the matter as soon as possible.
Homes with Mortgages
Most homes that have a mortgage on them have a clause in the mortgage document called the Due on Sale clause. These mortgage types are generally the conventional 30 year (and shorter) fixed mortgages, FHA, VA, USDA and other similar loans.<img src="https://assets.site-static.com/userfiles/584/image/mortgage_loan_papers.jpg" width="400" height="600" alt="mortgage" style="float: right;" /> Under the Due on Sale clause any type of transfer of the property triggers a requirement that the mortgage be paid off in full. It does not matter if the property is being transferred to an LLC fully owned by the homeowner it is still considered a transfer for purposes of the mortgage.
So if a homeowner were to transfer the title of their home into an LLC the lender could demand immediate repayment of the entire mortgage. Most conventional mortgages for residential homes require the title for the home be held in the name of the owner(s). These conventional mortgages will not lend an LLC owner.
Homes without a Mortgage
Whether a homeowner owns a home free and clear of a mortgage because they paid off their mortgage or they made the purchase with cash they have the option to have title of their home in an LLC. Their being <a href="https://www.cincinkyrealestate.com/blog/mortgage-payment-changes/">no mortgage on the home</a> the home is not subject to any Due on Sale clause. Many local title companies or real estate attorneys can help homeowners transfer title of the home into an LLC. The LLC must be properly established according to the laws and regulations of the state it is to run in. A homeowner considering the LLC option for their home should consult with an attorney as there may be other options (such as a trust) that work out better for the homeowner depending on their goals.
Investor-Owned Real Estate
Investors have more incentive to keep separate properties in separate LLCs and that is to make sure the liability of one property does not impact another property. So say for example a tenant slips and falls at one property and the owner is found liable. The LLC owner is liable only to the amount of assets that they own in the LLC that owns the property where someone was injured. So other properties owned in other LLCs should not be used to cover the liabilities of another LLC. The above example is contingent upon the owner having properly established/setup the LLCs and did not set them up just for show purposes. Every state has their own LLC rules/requirements and owners should be consulting with a local attorney who specializes in establishing LLCs in the state they are wanting to have them setup.
For <a href="https://www.cincinkyrealestate.com/blog/real-estate-investing-risk/">investor owned real estate</a> which has five or more residential units, is a mixed-use residential commercial or completely commercial building many lenders prefer the real estate be in the name of an LLC versus an individual for the exact same reason. If the individual is sued the lender does not want the real estate that is serving as collateral for the commercial loan to be affected by the actions of the individual.
If an investor owner owns single family homes or buildings up to four units with a conventional mortgage then the Due on Sale clause will be applicable to them. Those investor owners who own multiple investment homes in the one to four unit range but use a commercial mortgage to finance those homes, then putting those homes into an LLC should be fine as the commercial mortgage lender may allow that. Best case would be for the investor owner to ask the commercial lender what their requirements are with regards to titling of the home especially if the thought is to transfer ownership to an LLC after the mortgage been given.
Consult with an Attorney
Regardless of the ownership situation, owner occupied home with mortgage, own home free and clear, or investment real estate owner it is wise to consult with a local attorney who specializes in real estate and LLC setup if that is the path they want to pursue.<img src="https://assets.site-static.com/userfiles/584/image/pointing_to_insurance.jpg" width="400" height="267" alt="insurance" style="float: right;" /> LLC setup and operating rules can vary state by state. Slip up on one of the rules for how an LLC is to be run and the owner could have a court rule that the LLC is invalid and the owner and all assets are subject to full liability. Even having an LLC setup in one state yet not recognized by another state where the property is located can cause problems. Most of these situations can be best addressed by an attorney.
Final Thoughts
Moving a home into an LLC is a situation that depends on whether there is a mortgage or not. When there is a mortgage the homeowner could get into trouble if they more their property to an LLC. Owners wanting to move their property into an LLC should consult with an attorney to make sure all rules are followed.
Additional Resources
<a href="https://www.maxrealestateexposure.com/real-estate-attorney/" target="_blank">What Can a Real Estate Attorney Do For You?</a> - There is a lot of legal requirements associated with buying and selling a home. Having an attorney help with the process can make for a successful transaction.
<a href="https://springshomes.com/blog/the-difference-between-mortgage-insurance-and-homeowners-insurance/" target="_blank">The Difference Between Mortgage Insurance and Homeowners Insurance</a> - Insurance on a home is important to have as it protects a valuable asset. Homeowners need to understand both mortgage insurance and homeowners insurance and why one is needed and the other you should get rid of as soon as you are able to.
<a href="https://www.pacificalocals.com/blog/homeownership-wealth-creation" target="_blank">Homeownership and Wealth Creation</a> - As a home can help a person grow their wealth protecting that wealth should be a good goal as well.
About the author: The above article “Should You Put Your Home Into An LLC?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.2023-02-23T10:00:00-07:002023-02-28T09:25:39-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:15337Can A Buyer Walk Away From A Contract To Purchase A Home?<img src="https://assets.site-static.com/userfiles/584/image/Walk_Away.jpg" width="535" height="635" alt="Walking Away from a Home Purchase Contract" style="display: block; margin-left: auto; margin-right: auto;" />
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 <a href="https://www.cincinkyrealestate.com/blog/10-important-real-estate-seller-terms-know/">contingency section</a> 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 the contract have changed that ability and now a home buyer does not have an easy out due to inspection issues. The buyer must specifically call out inspection issues that they don’t want to deal with, like mold, foundation issues and more. When <img src="https://assets.site-static.com/userfiles/584/image/Home_Inspection_Magnifying_Glass.png" width="400" height="400" alt="inspect home" style="float: right;" />the buyer specifies those condition issues they can cancel the contract and request an earnest money refund.
The buyer can request the Cincinnati, OH contract be modified so that they are allowed to cancel for any inspection issue regardless of how small. To do so properly though the buyer should have a real estate attorney draft such amendment to make sure it is legally enforceable. For contracts in other cities and states the ability to terminate based on inspection conditions will vary and a local real estate agent and/or real estate attorney should be consulted to find out what laws are applicable.
The inspection contingency generally should be time limited in that all inspections should be performed by a certain time frame specified in the contract. Sellers usually don’t like when inspection periods are too long, but depending on time of year and inspector availability more time may be needed. The buyer can always ask for additional time under the inspection period if needed and the seller must also agree to the extension.
Appraisal Contingency
When purchasing a home with a mortgage (depending on how much money the buyer plans to put down) usually the lender will require the home to be appraised by a licensed appraiser. If the value of the home comes in below the contract price then the buyer has the option to cancel the contract and walk away. Other options available to the buyer include proceeding with the contract with price as-is and brining in additional money to closing to meet lender requirements. Negotiating with the seller to reduce the sales price to meet the appraised value or to reduce it somewhat and agree to bring the difference to the closing table as needed per lender requirements. If the buyer does choose to cancel they can request a return of their earnest money under the appraisal contingency clause.
The appraisal contingency time frame is generally open since the lender is the one who orders the appraisal and the appraisal has to wait until the appraiser is able to schedule it. During peak buying/selling season appraisals can be backed up. The appraisal is usually ordered by the lender after the buyer has passed through the inspection period. Since the appraisal is an additional expense a buyer must pay for, assuming everything went okay with the inspection period then the buyer can let the lender know to go ahead and order an appraisal.
Finance Contingency
When buying a home with a mortgage a finance contingency is a must. Unless a buyer also has the option of paying full cash in case the mortgage falls through, having the financing contingency clause in the contract can protect the buyer in case the worse does happen and the mortgage is denied. So long as the <a href="https://www.cincinkyrealestate.com/blog/7-smarts-things-to-do-prior-to-buying-a-home/">buyer is remaining on track</a> with their process of providing documents to the lender and making sure any lender questions/issues are resolved timely the final loan approval should come around the date of closing.
Due to the nature of the mortgage process it is possible the mortgage could be denied at the last minute. As a result the there <img src="https://assets.site-static.com/userfiles/584/image/man_holding_question_mark.jpg" width="400" height="600" alt="man with question mark" style="float: right;" />usually is no expiration on the finance contingency. While not very common there have been buyers and sellers told at the closing table that the buyer cannot get a mortgage to complete the purchase of the home under contract. Good lenders will be actively working on the buyer’s loan package and if they do have to deny the buyer the loan will be doing it much earlier during the <a href="https://www.cincinkyrealestate.com/blog/need-know-getting-home-mortgage/">mortgage loan process</a>.
No Contingency Cancellation
Right up until the buyer and the seller are to sign the closing paperwork the buyer can back out and refuse to close. When the buyer refuses to close and has no contingencies upon which to rely upon to cancel not only will they likely lose their earnest money they could also face a lawsuit from the seller for breach of contract. In most cases a court will not force a buyer to buy a home they don’t want but the court will require the buyer to pay damages to the seller. Those damages could include reimbursing the seller for lost expenses such as moving expenses, marketing expenses, as well as will include punitive damages. If the seller can prove loss in value of the home due to lack of the sale closing the court could also award monies to the seller based on that loss.
Final Thoughts
When cancelling a contract to buy a home a buyer should make sure they are within the timeframes allowed of the contingencies written into the contract In most cases as long as done within the allowed time frames of the contract the buyer can get their earnest money back when cancelling. A buyer wanting to cancel outside of any contingency period should consult with an attorney to make sure they understand all the legal risks.
Additional Resources
<a href="https://www.maxrealestateexposure.com/first-time-home-buyer-mistakes/" target="_blank">First Time Home Buyer Mistakes To Avoid</a> - Buying a home for the first time can be an exciting time until mistakes are made. In addition to making the process frustrating those mistakes can get costly. Buyers needs to be aware some common issues so they can avoid them.
<a href="https://fhalenders.com/first-time-home-buyer-questions/" target="_blank">First Time Home Buyer Q&A</a> - This article provides twenty common first time home buyer questions and answers that all home buyers should know about. The process of buying a home is a long and expensive one and buyers should know what to expect.
<a href="https://boulderrealestatenews.com/do-i-need-a-real-estate-agent/" target="_blank">Should You Work With a Real Estate Agent?</a> - Buying or selling real estate whether to live in or invest in takes a lot of time and effort. Having a great agent in your corner can help save time and headache as this article explores.
About the author: The above article “Can A Buyer Walk Away From A Contract To Purchase A Home?” was provided by Paul Sian. Paul can be reached at <a href="mailto:paul.sian@herrealtors.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/ready-sell-home/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/find-home-now/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I service the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township-ohio/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, <a href="https://www.cincinkyrealestate.com/fort-thomas/">Fort Thomas</a>, Hebron, <a href="https://www.cincinkyrealestate.com/hyde-park/">Hyde Park</a>, <a href="https://www.cincinkyrealestate.com/indian-hill/">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, <a href="https://www.cincinkyrealestate.com/norwood/">Norwood</a>, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Walk_Away_PIN.jpg" width="1000" height="1500" alt="Walking Away from a Home Purchase Contract pin" /> 2023-02-16T05:00:00-07:002023-02-16T10:10:42-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20547What is a Land Loan and How Do They Work?<img src="https://assets.site-static.com/userfiles/584/image/Land_Loan.jpg" width="535" height="635" alt="What is a Land Loan and How Do They Work?" style="display: block; margin-left: auto; margin-right: auto;" />
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 <a href="https://www.maxrealestateexposure.com/buying-land-getting-loan/" target="_blank">types of land loans available to purchase land</a> 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 <a href="https://original.newsbreak.com/@massrealty-1600066/2743928792496-construction-loan-vs-land-loan-which-is-right-for-you" target="_blank">better to choose a construction loan</a>.
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 <a href="https://www.cincinkyrealestate.com/blog/commercial-real-estate-due-diligence/">buying commercial real estate</a> 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 will be the one to choose. Getting this type of loan is complex, and you must have a solid plan to prove to the lender you are a reasonable risk.
Undeveloped land is cheaper, but the lender might require a <a href="https://www.cincinkyrealestate.com/blog/tips-for-saving-up-for-a-down-payment-on-a-home/">larger down payment</a> and charge high-interest rates on the loan.
If you are a first-time buyer or your credit score isn't as high as you'd like it to be, a raw land loan might be out of your reach.
Unimproved Land Loans
An unimproved land loan can be used for land that has access to utilities and other amenities. The plot of land may lack electric or natural gas meters, but it is still more developed and more accessible to build on than the previous option.<img src="https://assets.site-static.com/userfiles/584/image/Man_with_Loan_Docs.jpg" width="400" height="600" alt="man holding loan docs" style="float: right;" />
It is still challenging to get an unimproved land loan though not as tricky as a raw loan. You will need to have a detailed plan of the construction as well as money for the down payment. Your credit score needs to be good as well.
Unimproved land is less risky to lenders, so the interest rate isn't as high as with a completely undeveloped plot. Despite that, you can expect the loan to be more costly than many other types of lending.
Improved Land Loans
If the plot of land has access to utilities and a road and is almost ready to begin construction, it is considered improved. This type of land is more expensive, but getting a loan won't be as complicated or costly. The interest rate is likely lower, and the down payment requirement is less.
Even if you apply for this type of loan, you will still want a good credit score. This will make it as easy as possible to be accepted by the lender and could make the loan cheaper.
The land will need to appraise for the value of the property. Lenders are unlikely to allow an <a href="https://www.cincinkyrealestate.com/blog/what-is-an-appraisal-gap-clause/">appraisal gap</a> unless there is significant equity.
Approval for Land Loans
As well as having a good credit score and the money to pay a decent down payment, you need to have a detailed plan of what you will do with the plot of land.
You will need to know about zoning and any restrictions on what you can do on the land and put this in your plans. Your lender will also want to know about utility access, and they will probably require the land to be surveyed before they will approve the loan.
The lender does all of this to minimize the risk so that you do not default on the loan. There isn’t collateral with this type of lending, so the lender charges more to protect their investment.
Final Thoughts on Loans For Land
A land loan is an excellent option if you have found a plot of land to build your perfect home on but aren't quite ready to begin construction. Though if you are ready to begin building, a construction loan will give you the money for the land and to build the home.
Before you apply to a lender to give you the money to buy your plot of land, you need to be ready. It would be best if you had detailed plans of what you want to construct.
Make sure your finances are in order with a healthy credit score, and have the money available for the down payment.
Additional Resources
<a href="https://merrimackvalleymarealestate.com/how-big-is-an-acre/" target="_blank">How Big is an Acre?</a> - An acre is a measure of land and most plots of land are listed with the acreage number at the top of the remarks. Knowing how much an acre is will be important for those wanting to build a new home so they can understand how much space they have.
<a href="https://realtybiznews.com/buying-land-to-build-a-house/98761590/" target="_blank">Buying Land For Building a Home</a> - When buying land for building a new home the buyer needs to pay attention to some important things as not every piece of land is readily suitable to build a home on.
<a href="https://birminghamappraisalblog.com/faqs/excess-land-vs-surplus-land-whats-the-difference/" target="_blank">What are Excess and Surplus Land?</a> - When buying land it is important to understand the different terminology used. This article explores the difference between excess and surplus land and how they are looked at on an appraisal.
About the author: The above article “What is a Land Loan and How Do They Work?” was provided by Commercial Real Estate Specialist Paul Sian. Paul can be reached at <a href="mailto:paul@cincinkyrealestate.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/sellers/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/buyers/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I work in the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, Fort Thomas, Hebron, Hyde Park, <a href="https://www.cincinkyrealestate.com/indian-hill/" target="_blank">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, Norwood, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/" target="_blank">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Land_Loan_PIN.jpg" width="1000" height="1500" alt="What is a Land Loan and How Do They Work?" />
2023-02-09T08:00:00-07:002023-02-09T07:44:09-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20526January 2023 Greater Cincinnati Multifamily Market ReportThe 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.
<img src="https://assets.site-static.com/userfiles/584/image/Jan_2023_MF_Report.jpg" width="6000" height="3500" alt="January 2023 Greater Cincinnati Multi-family market report" />
2023-02-02T05:15:00-07:002023-04-19T06:24:15-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20525January 2023 Luxury Real Estate Market ReportJanuary was a slower month for home sales. The total luxury homes sold in January was 33 as compared to 61 selling in <a href="https://www.cincinkyrealestate.com/blog/december-2022-luxury-real-estate-market-report/">December 2022</a>. 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.
<img src="https://assets.site-static.com/userfiles/584/image/Jan_2023_RE_Lux.jpg" width="9000" height="6400" alt="January 2023 Greater Cincinnati Luxury Real Estate Market Report" />
<a href="https://wolfstreet.com/2023/01/31/the-most-splendid-housing-bubbles-in-america-january-update-now-phoenix-las-vegas-san-francisco-seattle-san-diego-plunge-fastest/" target="_blank">Housing Bubble 2.0 Update</a> - 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.2023-02-02T05:00:00-07:002023-02-01T14:04:33-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20497Important Things To Maintain In A House<img src="https://assets.site-static.com/userfiles/584/image/Maintain.jpg" width="535" height="635" alt="Important Things To Maintain In A House" style="display: block; margin-left: auto; margin-right: auto;" />
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 <a href="https://www.cincinkyrealestate.com/blog/garage-updates-home-value/">garage door </a>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. <img src="https://assets.site-static.com/userfiles/584/image/Garage_Small.jpg" width="400" height="268" alt="garage doors" style="float: right;" />
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 well as can clean the air that is pumped around the house. Regular maintenance of the HVAC is a must. <a href="https://www.cincinkyrealestate.com/blog/10-things-to-fix-your-home/">Failing to regularly service the HVAC</a> and keeping old filters in place will lead to a greater chance of a malfunction that will be costly to repair. Dirty air filters slow down the system which requires more air to be pumped throughout the house to keep it cooler or warmer. The end result is higher cost energy bills not to mention the need to replace parts of the HVAC system sooner.
Having the HVAC system (including vents through out the house) cleaned regularly helps ensure that dust particles stuck in the vents do no get redistributed to the rest of the house and into the occupants lungs. A clean HVAC system operates more efficiently which can help save on utility bills. Keeping a house cool/warm during the proper season means a home interior that not only remains comfortable but also helps preserve the condition of the home. Excess humidity in the summertime can lead to mold and other problems. Too much cold leaking in during the winter time can lead to burst pipes and water damage.
Plumbing
As the HVAC system is the lungs of the home, plumbing is like the blood vessels in a body. Leaks and blockages are a bad thing and can lead to very bad consequences. A back-up/clogged sewer lines means all the drain lines in the house will become unusable as waste water and sewage back flows in the home. Hidden leaks can lead to rotten wood behind walls that could result in entire floors collapsing. Homeowners need to pay attention to water stains on walls and ceilings, musty smells where there should be none and other signs of hidden leaks.
As water service to the house is not free any minor faucet leak costs the homeowner money. Those faucet leaks start out small but over time can become larger leaks. The homeowner is literally pouring money down the drain by not addressing leaks on a timely basis.
Windows & Doors
Another place where money can be thrown out the doors or windows is the doors and windows. Air leaks, broken windows and loose doors mean the outside elements getting in when they should not be. When it is summer time it is best to keep the heat and humidity outside of the house and vice versa keep the cold out of the house in the winter. Large gaps in windows and doors can allow insects to enter the home as well. Many insects and other pests more than being just a nuisance to the homeowner can also cause physical damage to a home as well.
Stuck/broken doors and windows are a safety risk. If a homeowner has to get out of the house as soon as possible but a stuck door or window prevents them from escaping things could get bad. Homeowners should be checking all windows and doors to make sure they are operating as they are expected to. Any bad doors/windows should be repaired/replaced as soon as<img src="https://assets.site-static.com/userfiles/584/image/ant.jpg" width="400" height="400" alt="ant" style="float: right;" /><br /> possible.
Foundation
The foundation is the base for everything. It holds up the house! Issues from things mentioned earlier in the article like bad windows, leaky plumbing, HVAC systems that don’t work can quickly allow moisture to build up and create a mold problem. Mold and wood are a bad combination as the mold will eventually eat away at the wood. Some of the components of foundations include wood. If that wood is damaged by termites or moisture it could lead to a failure of the foundation which will end up destroying the rest of the house. Homeowners need to regularly check the conditions in and around their foundation whether that be a crawl space, full basement or slab. There are <a href="https://www.cincinkyrealestate.com/blog/causes-of-foundation-problems/">different ways a home foundation can fail</a> and homeowners should be aware of those issues.
The Roof
Whereas the foundation protects everything above in a house the roof protects everything below. A leaky roof will lead to water damage issues that left untreated for too long can make the house unlivable. Water leaking into the house through the roof can cause floors to give way, can cause the walls to rots, fall down and more. Electrical wiring that runs through walls and gets exposed to water could lead the circuits to short out or even worse start a fire.
Final Thoughts
Without proper upkeep and maintenance a home can quickly lose value. Homeowners need to keep up on routine maintenance and keep an eye out for potential issues that can turn worse if left untreated. Homeowners should keep a list of reliable contractors to help fix issues as they arise to keep their home in tip top shape.
Additional Resources
<a href="https://massrealestatenews.com/smell-sulfur-house/">Checking For Gas Leaks in Your Home</a> - For those who have natural gas lines in their home to power their furnace, water heater or gas stoves paying attention to gas leaks is important. Learn about some of the signs to look for when facing a potential gas leak.
<a href="https://www.myseattlehomesearch.com/blog/sewer-line-repairs-costs-and-not-getting-ripped-off/" target="_blank">Tips For Dealing With a Sewer Line Repair</a> - Sewer lines are an important (but hidden) part of the home that needs to be kept in great shape in order to avoid costly and horrible sewer backups.
<a href="https://merrimackvalleymarealestate.com/home-inspection-checklist/" target="_blank">Home Inpsection Checklist </a>- Inportant list of areas that should be inspected when buying a home. For an existing homeowner the checklist can let them know what parts of the home need continual attention after they buy.
About the author: The above article “Important Things To Maintain In A House” was provided by Commercial Real Estate Specialist Paul Sian. Paul can be reached at <a href="mailto:paul@cincinkyrealestate.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/sellers/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/buyers/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I work in the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, Fort Thomas, Hebron, Hyde Park, <a href="https://www.cincinkyrealestate.com/indian-hill/" target="_blank">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, Norwood, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/" target="_blank">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Maintain_PIN.jpg" width="1000" height="1500" alt="Important Things To Maintain In A House PIN" />2023-01-26T05:00:00-07:002023-01-25T16:27:45-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20488How Does A Recession Impact Real Estate?<img src="https://assets.site-static.com/userfiles/584/image/Recession.jpg" width="535" height="635" alt="How Does A Recession Impact Real Estate?" style="display: block; margin-left: auto; margin-right: auto;" />
How Does A Recession Impact Real Estate?
In today's economy, it is essential to understand the impact of a recession on the real estate market. A recession can have a substantial effect on housing prices, rental rates and the availability of loans. It can also cause a decrease in construction and development. This article will explore how a recession can affect the real estate industry and what strategies investors and home buyers and sellers need to consider in order to stay ahead of these economic changes.
Are We in a Recession?
There seems to be some debate as to whether the US is in a recession as of the date of this article. Depending on where one looks there are claims that there is currently a recession whereas other sources say there is no recession. The official declaration of a recession usually comes after the economy has entered a recession and is made by the National Bureau of Economic Research (NBER). Per NBER <a href="https://www.nber.org/research/business-cycle-dating/business-cycle-dating-procedure-frequently-asked-questions" target="_blank">“The NBER's traditional definition of a recession is that it is a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”</a> NBER looks at monthly data that includes personal spending, the employment rate, Gross Domestic Product (GDP) and more. With employment rates and GDP being positive currently the consensus right now is that there is not an active recession today.<img src="https://assets.site-static.com/userfiles/584/image/Man_holding_question_mark_copy.jpg" width="400" height="600" alt="questioning recession" style="float: right;" />
How Does a Recession Impact Home Buyers and Sellers?
For homebuyers, a recession may lead to more affordable housing options. Home prices often fall during times of economic contraction and this can be beneficial for those looking for a bargain. Additionally, mortgage rates tend to remain low during recessions making it possible for people to buy property with lower monthly payments. The possible obstacle to buyers getting a mortgage to buy a home will be tighter lending conditions in general.
On the other hand, home sellers may not fare as well in a recessionary market. Many potential buyers may wait on purchasing until they feel more financially secure while others may be unable to obtain mortgages due to tightened credit standards imposed by lenders. This can mean fewer sales and lower-than-expected returns when selling property in uncertain financial times. Homeowners may face increasing pressures to sell from job loss, divorce, heavy debt loads becoming more expensive in this higher interest rate environment as well as inflation.
Recessions usually cause the unemployment rates to go up as businesses scale back headcount and hiring due to the economic downturn. As a result homeowners may find themselves under pressure to sell a home due to loss or job or cut back in pay/benefits which puts them in a <a href="https://www.cincinkyrealestate.com/blog/what-does-it-mean-to-be-house-poor/">house poor situation</a>. With not being able to make ends meet the homeowners will have to cut back on expenses and things like car payments, utility bills and house mortgage payments can suffer.
Usually the last to go is the house payment as everyone needs a place to live. But when faced with the possibility of foreclosure the homeowner may opt to sell and then move in to a cheaper apartment, move in with friends or relatives and/or move into a smaller more affordable house. These pressured sales can lead to the dropping of home prices which are further compounded when more and more sellers are forced to sell.
The pressured seller usually does not have the funds to fully improve their home in anticipation of sale and therefore must <a href="https://www.cincinkyrealestate.com/blog/selling-home-as-is/">sell their home as-is</a>. When selling a home as-is the seller must sell at a discount. Those discounted home sales are then used to price other similar homes for sale and can push the price downward for some time to come until the economy rebounds. Regardless of what interest rate a homeowner has if they can no longer afford the house payment they will have to sell or be foreclosed upon.
Recessions and Commercial Real Estate
When a recession comes all real estate assets are impacted. Commercial real estate is no exception. Much of commercial real estate relies on other businesses to pay the rent which drives the cash flows for investment real estate like retail strip centers, warehouses, office buildings, and multi-family housing. As a recession takes hold businesses either go out of business or have to cut back to save on money. The end result is less money being paid towards rents for commercial buildings which makes financing and re-financing much harder.
Loans for commercial real estate deals also become much harder to obtain. Interest rates for commercial deals go up along with the down payment requirements. The end result makes those <a href="https://www.cincinkyrealestate.com/blog/commercial-real-estate-due-diligence/">commercial deals harder to pencil out in terms of cash flow</a>. While appreciation is nice bonus an investor should be banking on cash flow and not appreciation. A property that does not cash flow with the current numbers should be hard pass unless the seller is willing to negotiate on price further and other numbers bring the deal in line with one that cash flows positively or will cash flow with some effort on the part of the buyer.<img src="https://assets.site-static.com/userfiles/584/image/Empty_Commercial_Kitchen.jpg" width="400" height="267" alt="empty commercial kitchen" style="float: right;" />Rents will also come down for residential rentals as more households consolidate in order to save money during a recessionary environment. This will put pressure on existing multi-family investments and where the borrower used a debt service coverage loan (DSCR) there are likely to be more issues. With DSCR loan the borrower is buying the property based the cash flows of the property and the ability to cover the debt payments based on those cash flows. Lenders will be keeping an eye on cash flows and where cash flows dip below the required cash flow level the owner could be forced to bring more cash to pay down the loan to within acceptable limits set by the lender.
Final Thoughts
While some might suggest there is a recession ongoing in the US the data seems to indicate otherwise. Recessions can have a great impact on the real estate market. Whether one is a home or investment property owner or looking to buy soon understanding the impact a recession can have on real estate is important to help for the future.
Additional Resources
<a href="https://sparkrental.com/real-estate-in-recessions/" target="_blank">How Do Rents and Home Values Perform in a Recession</a> - The data is there to back up what happens to real estate markets during times of recession. Depending on the severity of the recession all markets may not be able to escape the impact.<br /><a href="https://www.maxrealestateexposure.com/factors-to-consider-when-pricing-a-home-for-sale/" target="_blank">Home Pricing Tips For a Successful Sale</a> - Especially in a turning market getting the price right is important if a seller wants to sell their house. Priced too high homes will sit without buyer attention and no amount of marketing will be able to change that.<br /><a href="https://www.madisonmortgageguys.com/real-estate-scams/" target="_blank">Real Estate Scams to Avoid</a> - Scammers are always out and about looking for opportunities to take others people money. When times get rough scammers are more likley to target those who are facing stress and hardship.
About the author: The above article “How Does A Recession Impact Real Estate?” was provided by Commercial Real Estate Specialist Paul Sian. Paul can be reached at <a href="mailto:paul@cincinkyrealestate.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/sellers/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/buyers/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I work in the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, Fort Thomas, Hebron, Hyde Park, <a href="https://www.cincinkyrealestate.com/indian-hill/" target="_blank">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, Norwood, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/" target="_blank">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Recession_PIN.jpg" width="1000" height="1500" alt="How Does A Recession Impact Real Estate?" />2023-01-19T05:00:00-07:002023-01-18T17:54:28-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20463What is an Appraisal Gap Clause?<img src="https://assets.site-static.com/userfiles/584/image/Appraisal_Gap.jpg" width="535" height="635" alt="What is an Appraisal Gap Clause?" style="display: block; margin-left: auto; margin-right: auto;" />
How Does an Appraisal Gap Clause Work in Real Estate?
When you make an offer to the seller, and they accept, you still need the home to appraise when buying the home with a mortgage. Even when <a href="https://www.cincinkyrealestate.com/blog/buying-a-home-without-a-mortgage/">buying a home with cash</a> the buyer may want to make sure the value meets or exceeds the offer amount. When buying a home with a mortgage most of the times an appraisal will be required as part of the process. If there is a difference between the amount offered and the appraised value, the purchase could fall through. An appraisal gap clause can prevent the transaction from falling through as this article explores. (Be sure to check out the video down below for more on the appraisal gap clause.)
What are Appraisal Gaps?
When the agreed purchase price of the home is higher than the appraised value, <a href="https://www.maxrealestateexposure.com/appraisal-gap/" target="_blank">those in the real estate industry refer to it as an appraisal gap</a>. The appraised value is determined by a licensed appraiser hired on behalf of the lender to ensure they aren’t lending more than the home is worth. For example where a contract to purchase a home is priced at $400,000 and the home actually appraises at $350,000 the lender will not allow the mortgage to be approved unless the purchase price is lowered to $350,000 or the buyer brings additional money to the closing table.
How much additional money the buyer must bring depends on the loan to value amount the buyer is borrowing based on. At an 80% loan to value (LTV) ratio the buyer must bring 20% of the total home value as cash to the closing table. Depending on the <img src="https://assets.site-static.com/userfiles/584/image/Scared_man.jpg" width="400" height="267" alt="scared of appraisal gap" style="float: right;" />loan type some LTVs can be higher than 80%.
Closing the Gap
If you have to deal with an appraisal gap when buying a home, there are a few options to consider:
Covering the difference
You can pay the difference between the sales price and the appraisal value if you have the money available. Perhaps you have some investments you can raid if you don’t have the cash on hand. The lender may allow the buyer to take out another loan to help with bringing cash to the closing table. If borrowing additional money is needed to close on the purchase and the additional loan amount will impact the debt-to-income ratio requirement that strategy may not be allowed by the lender.
Depending on the LTV amount if the lender has programs where the buyer can bring less cash to closing, for example with a 90% or a 97% LTV loan the buyer can close the deal in that case but they may be overpaying on the house. Depending on the loan as well the buyer may face additiona monthly charges in the form of private mortgage insurance also known as PMI.
Negotiation
While the buyer might have already gone through many negotiations with the seller during the offer period and inspections, renegotiation is another option to deal with appraisal gaps. The buyer can ask the seller to reduce the purchase price to meet the appraised price in which case the lender will move forward. If the seller is not willing to reduce the price, the buyer could offer to bring more cash to the closing table while asking for some price reduction as well in order to cover the appraisal gap.
Disputing the appraisal
If the appraiser has made some errors, <a href="https://www.cincinkyrealestate.com/blog/how-do-i-appeal-a-real-estate-appraisal-for-my-home/">the buyer and/or seller can appeal the appraisal</a>. The appraiser will require proof/evidence to show that their appraised value was too low. Absent any evidence such as recent sales, some error made by the appraiser (such as undercounting bedrooms, coming in low on square footage, and more) the appeal will be denied. Having the facts presented to the appraiser in a clear, concise manner is vital and your real estate agent should be helping you in preparing the evidence.
What is an Appraisal Gap Clause?
In hot real estate markets, a <a href="https://www.rismedia.com/2022/11/08/what-is-appraisal-gap-clause/" target="_blank">real estate agent suggest an appraisal gap clause</a>. Appraisal gap clauses are the opposite of an appraisal contingency. A coverage gap clause requires the buyer to pay any gap between the appraisal and the agreed<img src="https://assets.site-static.com/userfiles/584/image/Woman_Dollar_Sign.jpg" width="400" height="267" alt="woman with dollar sign" style="float: right;" />purchase price up to a particular value. This will mean a specific dollar value is included in the contract, which needs to be paid to close the gap when there is one.
In other words, when there is a gap, a buyer guarantees the seller they will move forward with the sale by increasing their down payment. Though if this value isn’t enough to cover the gap, the other options we’ve discussed can be used to keep the purchase on track. The appraisal gap coverage means the buyer still has to purchase the home when there is a gap. If, instead, there is an appraisal contingency, the buyer can back out of the purchase with their earnest money returned if other options aren’t possible.
If there is an appraisal gap guarantee, contingency, or clause in the purchase contract, the seller will be better equipped to deal with a gap if it happens. An appraisal gap coverage clause isn’t quite the same as a contingency, but it is better than waiving this option entirely and gives some reassurance to the seller.
Final Thoughts
Appraisal gaps aren’t uncommon, particularly in changing markets. When a potential new home doesn’t appraise, there are have options to keep your purchase on track. With clauses or contingencies in the purchase contract, both the seller have options to protect their interests and ensure the deal remains on track..
Additional Resources
<a href="https://merrimackvalleymarealestate.com/what-is-debt-to-income-ratio/" target="_blank">What is Debt to Income Ratio For Mortgage Purposes?</a> - The Debt to Income ratio of DTI is a number that mortgage lenders look at in order to determine if the borrower can afford a certain rental payment.
<a href="https://wellingtonhometeam.com/what-happens-if-a-home-doesnt-appraise/" target="_blank">What Happens When The Appraisal Comes In Low?</a> - With the market rapidly changing a home coming in appraised under the contract agreed to price can cause stress for both the seller and the buyer. Learn about the options both sides have and both sides will need to work together to come to a resolution.
About the author: The above article “What is an Appraisal Gap Clause?” was provided by Commercial Real Estate Specialist Paul Sian. Paul can be reached at <a href="mailto:paul@cincinkyrealestate.com">paul@CinciNKYRealEstate.com</a> or by phone at 513-560-8002. If you’re thinking of <a href="https://www.cincinkyrealestate.com/sellers/" target="_blank">selling</a> or <a href="https://www.cincinkyrealestate.com/buyers/" target="_blank">buying</a> your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I work in the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, <a href="https://www.cincinkyrealestate.com/anderson-township/" target="_blank">Anderson Township</a>, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, Fort Thomas, Hebron, Hyde Park, <a href="https://www.cincinkyrealestate.com/indian-hill/" target="_blank">Indian Hill</a>, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, Norwood, Taylor Mill, <a href="https://www.cincinkyrealestate.com/terrace-park/" target="_blank">Terrace Park</a>, Union Township, and Villa Hills.
<img src="https://assets.site-static.com/userfiles/584/image/Appraisal_Gap_PIN.jpg" width="1000" height="1500" alt="What is an Appraisal Gap Clause?" />
2023-01-12T05:00:00-07:002023-01-16T07:56:14-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20444December 2022 Greater Cincinnati Multifamily Market ReportThe 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.
Fewer sales in the multi-family cateogry for December 2022. Some of the slow down can be attributed to December being a typically slower selling month due to holidays. Interest rates are likley having an impact as well.
<img src="https://assets.site-static.com/userfiles/584/image/Dec_2022_MF_Report.jpg" width="6000" height="3500" alt="December 2022 Multifamily Market Report Greater Cincinnati" />2023-01-05T05:15:00-07:002023-04-19T06:24:32-07:00Paul Siantag:cincinkyrealestate.com,2012-09-20:20443December 2022 Luxury Real Estate Market ReportDays on market ticked up along with total luxury homes sold in the month of December as compared to <a href="https://www.cincinkyrealestate.com/blog/november-2022-luxury-real-estate-market-report/">November 2022</a>. Total homes llisted for sale too did come down, but that is to be expected as home sellers prefer less to sell during the month of December when the holiday season is in full swing. We should start to see an increase in luxury listings available for sale in the upcoming months.
<img src="https://assets.site-static.com/userfiles/584/image/Dec_2022_RE_Lux.jpg" width="9000" height="6400" alt="December 2022 Greater Cincinnati Luxury Real Estate Market Report" />2023-01-05T05:00:00-07:002023-01-04T13:55:18-07:00Paul Sian