New Construction Still Needs Attention

With the recent rise in new constructions it is a great time to review some new construction basics regarding warranty. Contractor Problems are one of the largest numbers of complaints received by the Better Business Bureau. These types of stats makes it important that you are knowledgeable and informed about how to insure that your Columbus area home remains the dream that you fell in love with, and does not become your worst nightmare. Listed below are a few things to pay attention to in order to make sure your contractor doesn't end up as your complaint:

Understand what your Warranty Covers

Basically there are two types of warranties. The first is called an express warranty, and is given to the buyer by the contractor. The usual time frame for this warranty lasts between one to ten years, with one year being standard and the most common. Everything from minor cosmetic flows to major defects is generally covered.

An implied warranty that lasts seven to ten years and basically states that the residence has to be habitable. This is the second type of warranty and the specifics can varies depending on the state you live in. To have your defect covered by this warranty, you have to be able to prove that it's a health or safety hazard. If you have concerns in this area it is advised that you seek an attorney that can interpret the legal process and remedy...

Not All Defects are ‘Defects'

Not all defects are reasons to sound the alarm. There are specific rules that determine whether or not a defect qualifies as something that must be addressed. An example would be a small crack in the interior of your new Columbus area would be considered to be a normal defect. Cracks that would need to be repaired are those longer than 3/16 of an inch, according to the National Association of Home Builders'® guidelines for performance. Although pesky, hammer marks or nail pops only count if you can see them from more than six feet away.

Document Document Document

After a real defect has been identified, document everything. Keep a log and take photos. Ideally this will be smoothly worked out by your builder but if it is not you will need your documentation should you decide to pursue other actions. For added peace of mind, you may want to hire an independent inspector or structural engineer, to give your house a full examination prior to closing and moving in.

Buying Brand New Columbus Area Home can be enjoyable when you work with a REALTOR® like me who has the knowledge and experience to guide you through the process. Call me today at 614-273-6406 or email me at Vanessa.simmons@realliving.com

LINKS:
Implied warranty - http://www.legalmatch.com/law-library/article/implied-warranty-real-estate-contract-lawyers.html
National Association of Home Builders - http://www.nahb.org/
Contractor - http://en.wikipedia.org/wiki/General_contractor

For More Home Buying Tips See:
First Time Buyer... Please Read...

Why the Stimulus Makes this a Fantastic Time to buy Real Estate

There are great incentives for first-time Columbus area real estate buyers. Big tax incentives and money put into the banking and financing industries to give buyers more availability to loans makes now the best time to move when looking for a home. This environment won't last—exactly. Some of the elements put in place are geared toward a strong future for the housing market, but many of the advantages are only good for now.

Tax Relief

First-time Columbus Area real estate buyers, meaning those who have not owned a home in the past three years, are eligible for a big tax break on income taxes. Next year at tax time all buyers have to do is report the new home purchase to get $8,000 dollars back. That's a big incentive. The drawback is it’s only good for this year. It is retroactive to the beginning of 2009 so even if you have already bought that home you can still claim it, but if you drag your feet hoping for better mortgage financing, or just a better time for your family to get a new home, you will miss out after December 31, 2009.

OHFA

The Ohio Finance Authority has decided that as of March 30th, 2009 buyers who qualify can use their $8000 stimulus tax incentive to help with down payment and closing costs. This will allow more Columbus area buyers the opportunity to take advantage of the outstanding inventory of homes available. This program is scheduled to run through November 2009, however, funds are limited so don’t miss out.

Affordable Housing

Right now is the time to buy because of prices, too. Thanks to the failings of the housing market, there are tons of homes for sale at prices they would not normally be listed at. If the stimulus plan improves the economy the way it is hoped it will, that won't last. This week there has already been signs that home sales are on the rise. That's great news for homeowners, but not great for those who wait to take advantage of the greatly reduced home prices.

Columbus area real estate buyers need to take advantages of all that 2009 and the current real estate market have to offer. There are great deals that may never happen again—Do not miss this golden opportunity to grow your personal net value.

If you’re interested in taking advantage of the 2009 stimulus plan or have any other real estate concerns, I can help. Call me at 614-273-6406 or email me at Vanessa.simmons@realliving.com for more information.

LINKS:

Big tax break on income taxes: http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home#taxcredit
Mortgage financing: http://mortgage.freedomblogging.com/2009/02/18/obama-mortgage-rescue-promises-75-billion-in-aid/6767/

Ohio Finance Authority: http://www.centralohiorealestatecafe.com/post/1002788/-8000-dollar-tax-credit-down-payment-assistance-hurry-limited-funds

Stimulus plan: http://centralohiorealestateinformation.blogspot.com/2009/03/how-stimulus-bill-can-help-you-get-your.html

$8000 Dollar Tax Credit = Down Payment Assistance Hurry Limited Funds!!!

The following information was obtained from a Countrywide Loan Officer. I have confirmed this with several lenders. This is One of Two New OHFA Programs that offers Columbus, Central Ohio and the rest of Ohio options for down payment assistance and incentives to help folks get excited about home ownership in 2009....

Homebuyer Tax Credit Advantage Program Effective Date: March 30, 2009The Homebuyer Tax Credit Advantage Program offers a second mortgage to borrowers who obtain a first mortgage through the OHFA First-Time Homebuyer Program.

In order to encourage first-time homebuyers to enter the market in 2009, the program will allow OHFA first-time homebuyers to leverage the benefit of the federal first-time homebuyer tax credit for down payment and/or closing costs. The American Recovery and Reinvestment Act of 2009 amended and extended the first-time homebuyer credit to include purchases closing between January 1 through November 30, 2009. For qualified first-time homebuyers who purchase a home in 2009, the maximum credit is $8,000 and can be claimed on a buyer's 2008 or 2009 federal tax return.

The loan may be up to three percent of the purchase price.

No cash back may be issued to the borrower.

Principal and interest payments are deferred until July 1, 2010 after which, loans will amortize over 15 years at an interest rate 1% above the first mortgage rate.

The OHFA application fee will be $300 and can be paid by the buyer, seller or financed in the loan.There is an incentive for early repayment of the loan.

If the loan is paid in full prior to July 1, 2010, OHFA will forgive $300 of principal.

Lenders may charge a special processing fee of $75.All loans must be recorded as second mortgages using OHFA note and mortgage documents.Borrowers must have a minimum 600 credit score.

Borrowers must complete homebuyer education through a HUD approved counseling agency or through OHFA's streamlined program.

Program will run until 11/2009 or until funds are exhausted.

OHFA website: http://www.ohiohome.org/

Call me for more details or if you are ready to take advantage of this exciting NEW program for Columbus and Central Ohio Buyers. (614)273-6406 or email vanessa.simmons@realliving.com

Sweet 16...The Ohio State Universtity Lady Buckeyes

If you missed the Lady Bucks Last night you missed quite a game. It was a small crowd of only 4824 in Downtown Columbus's Nationwide Arena (Home of the Columbus Blue Jackets), the arena's capacity for basketball is 19,500.

Never the less it was a game to remember. In this round two of the NCAA Tournament the Bucks played awesome defense and was able to break away from Mississippi State, in the closing minutes to pull out a 64-58 victory. Now the Lady Buckeyes are in the Sweet 16 for the second time in the the 7 years Coach` Jim Foster has been with OSU.

California Bound..... Game day will be Saturday at either 9 or 11:30 p.m.

Go BUCKS!!!!

Girls Basketball... Like Watching Paint Dry.....

First Time Buyer… Please Read…

What an exciting time to be a 1st Time home buyer. Everything is on sale and your rich Uncle Sam is going to give you a tax credit of $8000 dollars as an incentive to stop renting and go out and buy your dream home.. However, before you rush off to take advantage of that credit take a second to review the tips and advice here.

Do Your Homework
When you are looking through homes they all look great just ask anyone who has done a home search, Often after you close and move in things still look pretty good and then you start to notice the “little” things. You start to question how you could have totally over looked this and that. There may be things that you knew to be on the lookout for but somehow were missed each time you walked through. This is why it is so important to have your Central Ohio home thoroughly inspected by a professional home inspector.

Avoid Last Minute Surprises
Issues with Title can not only cause you heartburn on closing day they can totally derail the transaction and cause you to be without a home. I was recently made aware of a situation where a couple sold their home and had to move out so that the new owners could move in. The couple had title issues with their new home and was forced to find somewhere else to live until the title issues were resolved. Title is not the sexiest part of the home buying and selling process to think or talk about but it is a vital part and by working with your agent you can find a reputable title company that can help you avoid any last minute surprise during the home closing process.

Don’t be a Victim of Rookie Mistakes
Outside of the typical problems that will likely be uncovered by a good home inspection there are a few typical first time buyer mistakes that you will want to avoid, a few of which include:

· Underestimating the cost of fixing up an older home.
· Failing to negotiate better terms and conditions.
· The full impact of a long commute and how to decide how far is too far.

You want your home buying experience to be exhilarating, fun and exciting and it will be providing you work with professionals that can help you avoid costly mistakes.

Whether you need a recommendation for a professional lender, home inspector or contractor for your Central Ohio property, I can help. Call me at (614)273-6406 or email me at Vanessa.simmons@realliving.com

LINKS:
$8000 Stimulus Plan: http://centralohiorealestateinformation.blogspot.com/2009/03/how-stimulus-bill-can-help-you-get-your.html
Professional home inspector: http://www.ashi.org/
Home closing process: http://homebuying.about.com/od/buyingahome/qt/101107_homclose.htm
First time buyer mistakes: http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/buyer12

Is Flipping Dead In 2009?

Absolutly Not—providing you have realistic goals and know what you are doing flipping homes can still be a profitable endeavor in 2009. This does not mean you need to be a financial genuis. The truth is that the majority of folks flipping homes are every day Joes and Janes like you and me. Being a rocket scientist, is not a requirement but you do need to be much smarter than you used to be to be able to make money flipping a Central Ohio property in 2009.

Think Conservitive

Not in the political sence but as a general practice from start to finish. With Market conditions being what they are there is little room for error. Purchasing as low as you can, holding down costs of home repairs and improvements, selling at a reasonable price and keeping your focus on getting rid of the property quickly is essential in having a successful flip in 2009.

Keep Realistic Expectations

Unlike times past, in today’s market it may be unrealist to think that you will be able to move a property a few weeks after completion. Of course working with your realtor you should be able to get comps and information that can help you gage probable selling timeframe. Being able to obtain manageable financing rates will be key should you need to float payments until the property sells.

Greed is Not Good

No matter how tempting it is to price a property flip at the highest amount that the community will afford, it must be resisted. In today’s slow market that would most likely be a recipe for disaster. The only thing you will succeed in is prolonging the sell of the property. In and Out as cost effectively and quickly as possible is the key. Granted this may not be as quickly as in days past but it still needs to be the motto by which you operated. Making a profit is the ultimate goal for your Central Ohio Flip, however, margins are likely to be a little tighter in today’s market.

Reflections from the Past

Flipping properties 2,4, 5 even 10 years ago was not a whole lot different than it is today. Then as now property flipping was a high stakes game of reward and risk profitable only to those who understood and respected the rules and limits. A few years ago one could error and bounce back today the consequences of mistakes can be much harder to recover from.
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Ready to make a profit flipping a Central Ohio Property or have other real estate needs, give me a call at 614-273-6406 or email me at vanessa.simmons@realliving.com.

For More Home Buying/Selling Tips See:

Should Your Central Ohio Investment Property be a Fixer Upper?

Drab Kitchen Make-Over…On a Budget

Quick-N -Easy Fix for Beat Up Woodwork....

Showcase The Bathroom In Your Home For Sale

Fake HUD Site

Beware that fake websites are popping up with the intent of gathering your contact information. An example of such a web site is bailout.hud-gov.us/ .

Please note that this is not an official government site, even though it has official looking photos and a government looking seal. Paging through this site even shows that they included a consumer alert tab that warns of fraudulent websites.

There is absolutely no connection to HUD. Their disclosure page reveals that they are, "....a for profit business....." Consumers beware.

If you are looking for assistance with Central Ohio Real Estate including HUD properties, please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com

For More Information on HUD Properties Please See:

How To Purchase A HUD Home...

How Does HUD's $100 Down Program Work?

Hey Good Neighbor...

I Won the HUD Bid But....(I don't want the house)

I Won the HUD Bid But….(I don’t want the house)

A few months ago my I had a client that was 3 days away from closing his HUD property when we realized that all the copper was stripped from the property. HUD made the decision to issue a credit to my client versus replacing the plumbing. My client decided to walk from the deal. After filling out the appropriate form and waiting 3 weeks, I was notified by HUD that I could return my clients earnest money.

This was an example of successfully getting Earnest money back from HUD. .

HUD does offer some great deals and opportunities but like any other government entity it can be slow and cumbersome. It is important to work with an experienced Agent who knows the process and can assist you in getting your bid and paperwork correctly submitted to better insure a smooth closing. Changes can be made…….At a cost!

If you change your mind on the purchase without an acceptable reason you could forfeit all or a portion of your earnest money.

HUD Cancelations/Extensions

HUD automatically cancels contracts that do not close on the date indicated on the original contract. Extensions are granted on a case by case basis but must be requested I writing, on the correct form, at least 5 days prior to closing. The fees for the extensions are as follows:

$150 .00 for properties $25,000 or less
$225.00 for properties $25,001 -$50,000
$375.00 for properties $50,001+

For more information on HUD homes see: How To Purchase A HUD Home... OR How Does HUD's $100 Down Program Work? OR Hey Good Neighbor...

If you are looking to purchase a HUD property or have other real estate questions please call me at 614-273-6406 or email me at Vanessa.simmons@realliving.com

Hey Good Neighboor

Are you a teacher, firefighter, law enforcement officer or emergency medical technician if so than HUD may have the deal of a lifetime for you?

Research shows that professionals who work in the above mentioned areas tend to have a stabilizing effect on neighborhoods. HUD rewards these tireless individuals with the opportunity to acquire specific properties for up to 50% of the appraised value.

Program Highlights:

· Homes can be purchased with FHA, VA, Conventional and Cash.
· Down Payment is only $100.00
· Closing costs can be financed
· Owner/Occupant
· Owner must reside in property for a min of 36 months
· Regular HUD earnest money requirements still apply

More good news is that this program is available in several states. If you know a teacher, firefighter, law enforcement officer or emergency medical technicians outside of Ohio, let them know about this program. For more details on this exciting opportunity CLICK HERE

Need More Information on HUD Properties… check out:

How To Purchase A HUD Home... AND How Does HUD's $100 Down Program Work?

If you are ready to purchase a Central Ohio HUD property or have other real estate concerns please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com

How Does HUD's $100.00 Down Payment Work?

Ohio is one of the states where HUD is still offering consumers their $100 dollar down program but many folks are confused as to exactly how it works.

First it is important to know that the program is for owner/occupants only.

Next it is important to note that the program only applies to FHA Loans.

The components are as follows:

•1. $100.00 dollars down applies to the down payment only. ***Key point to keep in mind...-even with this program the $1000.00 earnest money deposit is still due within 48 hours of winning a HUD bid. The $100 down payment replaces FHA's required 3.5% down payment.

•2. As of Cot. 1st 2008 until further notice the buyer will receive a $2500.00 Sales Incentive which can be used for:

•a. Closing Costs
•b. Tax-Probations
•c. Repairs to the home
•d. Replace items in the home
•e. Additional Down payment

•3. $500.00 Real Estate Broker Bonus. This is in addition to the commission the selling agent receives for the transaction.

For more information about purchasing HUD homes see: How To Purchase A HUD Home...

Looking to buy a HUD home or need other assistance with Central Ohio Real Estate call me at 614-273-6406 or email Vanessa.simmons@realliving.com

How To Purchase A HUD Home…

I have had quite a few calls asking how to buy a HUD home, so in an effort to address those questions I have do decided to do a series on HUD homes. …





The best place to start the series is at the beginning with: How To Purchase A HUD Home.



Step 1. Work with your lender to find out how much house you can afford.



Step 2. Find an agent approved to place bids on HUD properties.



Step 3. Shop for your Home: Ohio, FL, NJ and NY CLICK HERE….All Others States Click HERE



Step 4. Work with your agent to submit your offer



Step 5. Get An Inspection



Step 6. Shop For Home Owner Insurance



Step 7. Close on Your New Home



With so many homes going into foreclosure HUD offers tremendous variety for first time buyers and move up buyers alike.



Please check back for the next installment offering a detailed explanation of how the $100 dollar down program works.

For related information see: http://centralohiorealestateinformation.blogspot.com/2009/01/home-inspection-of-foreclosure-and.html

I am experienced in successfully selling HUD properties so if you need assistance to purchase or have additional questions about HUD or other real estate concerns, please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com

Major Changes At Countrywide....

The information below was obtained by a loan officer with Countrywide Bank FSB. It is a list of the major changes that they are making on Conventional Loans both conforming and non-conforming in the Central Ohio Area. The source was unable to say whether or not Countrywide will be implementing these new guidelines throughout all their service areas but since our market has been tagged as “restricted” and or “soft” these changes will go into effect for all loans locked after March 19th, 2009

1) Minimum credit scores now with loans over 80% loan to value will be 700 and no longer 620

2) 2nd homes will now require 20% down on conforming loans

3) Debt Ratio's - MAXIMUM is 41% for loans over 80%, regardless of Automated Underwriting system and MI companies will NOT insure them so they have to be at 41% even or below

4) Reserves - minimum 2 months of reserves are now required and can be more based on the Automated Underwriting System

5) Cash out refinances - MAXIMUM is 80% cash out and loans that were done originally as 80-15-5 or 80-10-10 where the borrower wants to refinance both loans into 1, that is considered 'CASH OUT' and maximum is 80% loan to value

6) CONDO'S - MINIMUM 15% DOWN WITH SCORES OVER 700 & CONDO HAS TO BE FNMA ELIGIBLE

7) Interest Only Loans- Maximum financing is 80% For awhile treated like the ugly duckling this is going to make FHA EVEN MORE ATTRACTIVE AND ELIGIBLE FOR BORROWERS OVER 80% LTV WITH SCORES UNDER 700..

It will be interesting to keep watch to see if others follow suit with Countrywide..

If you are looking to purchase or sell a home in the Central Ohio Area please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com

Should I Stay or Should I Go?

One of the biggest questions potential sellers seem to be asking lately is, “Should I Stay or Should I go?”

With the Central Ohio Real Estate Market, like most other markets, still recovering from foreclosures, short sales and bank owned properties, which continue to drag down property values, many sellers are wondering if now is the right time to sell their home to purchase a new one.

There are a few things to keep in mind. Here in Central Ohio, year end 2008 saw a 13.5% drop in inventory levels over year end 2007. Time on market showed a decrease from 108 days to 100 days.

The absorption inventory rate is another indicator of market conditions. At the end of 2008 we had 7.67 months of inventory where as at the end of 2007 we were at 8 months. Market watchers consider Central Ohio to be in balance when the inventory absorption rate is at a 6 months’ supply, over 6 months is a buyer’s market and under is a seller’s market. As it stands, we are still in a buyer’s market but it is showing improvement.

Central Ohio is teetering at an interesting point with great inventory levels, low interest rates and incredibly low home prices. Houses here offer enough variety to satisfy first time buyers and seasoned move up purchasers. We are still seeing that even if sellers lose a bit on the sell side they are more than making it up on the buy side.

So when I am asked the question….Should I stay or should I go?

I say….. Definitely GO!!!

To view the complete 2008 Columbus Ohio Residential Metro Area Analysis CLICK HERE
Thinking of buying or selling your Central Ohio Home please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com

Drab Kitchen Make-Over…On a Budget

Ready to sell but the kitchen needs an update on a budget? There are tons of things that can be done to bring your dead kitchen back to life.

Clean:
Removing wallpaper and borders are quick ways to update the look of your kitchen.
Wipe down walls that do not need painting. Don’t forget doors baseboards and switch plates.
Clean oven, refrigerator and degrease.

Paint:
Paint is always an inexpensive way to liven up a tired kitchen. As always you want to stay with neutral colors and perhaps try out some of the new “Green “paint products.

Cabinets and Counter tops:
Change hardware on drawers and cabinets. Replace hardware or consider removing and painting for a truly inexpensive update.
To update stained or damaged countertop try laminate sheets. These sheets come in a variety of colors and styles and are inexpensive and easy to install.

Floors:
A quick easy fix for tired kitchen floors in your Central Ohio home are self adhesive vinyl tiles. These tiles can be installed over existing linoleum flooring.

Appliances:
Can’t afford the popular stainless steel or have miss-matched appliance consider painting them. Painting appliances can be an expensive fix for problem appliances.

Faucets:
If you cannot replace the entire sink replace faucets for a quick fix. Faucets come in a variety of colors and styles.

Backsplashes:
Backsplashes are a forgotten area that, if taken advantage of, can allow creativity and flare. Backsplashes can be installed quickly and easily and makes a dull kitchen look finished and polished.

If you are looking for more cost effective tips to help your home sell call me at 614-273-6406 or email me at Vanessa.simmons@realliving.com

Youngest Victims of Foreclosure

We all know the toll that the foreclosure crisis has played on the economy and the housing market. There has even been much reported on foreclosures impact on pets, but what about the children?

In a recent report conducted and published by First Focus , it is estimated that 1.95 million children will be affected by foreclosure over the next two years. The report reveals some startling revelations about the impact foreclosure has on the success of school aged children:

1. Each time a child moves to a new school it takes an average of 6 weeks for them to adjust.
2. Children who move 2 times in a year are half as likely as their peers to read proficiently.
3. Children of foreclosure have a higher chance of being held back a grade.
4. Excessive Mobility reduces the chances of graduation by 50%.

Also affecting the class room, this study finds that children, who are forced from their homes, are more likely to display behavior problems and aggressive behavior. Children are just one more compelling reason to get a handle on the escalating problem of foreclosure. The long term societal implications are staggering.
To see the full report of how foreclosures impact children in Ohio and other states CLICK HERE

For foreclosure options please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com.

How the Stimulus Bill Can Help You Get Your Central Ohio Home

There are several indications that the new stimulus bill passed by Congress will have a positive influence on the struggling housing market. If you are considering buying a Central Ohio home for the first time the stimulus plan may help make that happen.

How the Stimulus Bill Stimulates the Bottom Line

The biggest effect the stimulus plan will have on new home buyers is a tax incentive. We all want to get more money back on our tax returns and the stimulus bill has an $8,000 tax credit for first-time home buyers purchasing a Central Ohio home.

How You Qualify

In order to qualify for the stimulus tax incentive you must:
· Not have owned a home in the past three years.
· Use the new home as your primary residence.
· Have an income of less than $75,000 per person or $150,000 per couple.

No action is necessary other than reporting the purchase on your income tax filings. You must keep your home for at least 36 months in order to not have to pay back the incentive in the following tax year. If, however, you keep your new home for 36 months or longer you never have to repay the incentive.

There is no cap on return for this incentive either. Even if you would not normally be entitled to the full amount according to your taxable income level you will still receive the entire $8,000 amount in return.

Stimulating Interest on Central Ohio Home Purchases

The stimulus bill also gives first-time home buyers a chance to get into those big ticket houses. Houses with market values over $417,000 will be eligible for lower interest rates to make them more affordable. The luxury home industry has stagnated in the failing real estate market and this should give it a vital boost.

President Obama's stimulus plan is serious about improving the housing market. The bill gives people looking to buy a Central Ohio home reason to hope.

Interested in more information on how the stimulus plan can you help buy a home? Call me at 614-273-6406 or, if you prefer, email me at Vanessa.simmons@realliving.com

LINKS:
Stimulus tax incentive: http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home#taxcredit
Primary residence: http://en.wikipedia.org/wiki/Primary_residence
Housing market: http://www.abc2news.com/content/financialsurvival/maryland_business/story/Some-Say-Stimulus-May-Get-Housing-Market-Moving/fJykJbcYAEKuO15DFO7SIg.cspx