Real Estate Columbus Ohio

The Most Difficult Thing To Do

2010-10-13T17:03:00.000-04:00

I've had a few very good conversations lately with some people I really respect. Some conversations had to do with real estate, one had to do with an athletic endeavor, one has to do with a current negotiation and one had to do with business in general. When I have a meeting that isn't specific to generating income - in other words not with a potential/current/previous client - I look back on that meeting and try to deny/confirm whether it was an investment in time or a waste of time.

My last few meetings have definitely been an investment in time and I'm very happy with that. And no, I'm not wearing rose-colored glasses: believe me, I know when I've wasted my time. Considering that I used to be one of the best at it, I know it when I see it. Anyway, I've been negotiating a deal and there's literally nothing our side can do. In fact, if we do anything whatsoever it will be viewed upon as being a sign of weakness and our position of power (or lack thereof) will be buried further.

So as the title states, we need to do something that is very difficult indeed. So at this time, and for the last week, we've done nothing. Sure, I followed up with the other side to see if the client has done nothing but they haven't. So we wait. And that's what we'll continue to do until we here from the other side. Is it easy? Heck no. In fact, my client has spent his entire career making things happen. So to do nothing is literally driving him up a wall. However, he fully understands why we're doing what we're doing so we continue to do it.

Think about all of the negotiations that you've ever been involved in: as you look back, would it have made sense at one time or another to take the approach of doing nothing? My guess is that if you're in a position where you do many negotiations, you will have looked back and saw that one time in particular where doing nothing would have been not just the best reaction, but many times the best action.

An Interesting Conversation

2010-10-12T11:35:00.000-04:00

I have a very diverse network of friends. I have an even more diverse network of acquaintances. Yesterday I happened to run into an acquaintance (a friend of a friend) who I've know for a few years. His official title is "Financial Adviser", but what he really does and is really good at is picking stocks and bonds.

We happened to run into each other at Starbucks and we sat for a few minutes and chatted. He's been gracious to me in the past and referred to me a couple of potential clients. Unfortunately for me they were very small jobs and it was actually better for me to refer them directly to a few of my contractors. I've referred a few friends to my friend, who he happens to actually work for.

We were sitting discussing what's been happening in our business lives over the past few months. We are both in industries that have been on quite a roller coaster ride the past few years. I asked him his thoughts on oil, equities (stocks), bonds and gold. He shared his thoughts (sorry, a verbal non-disclosure agreement exists between us) and then he asked me mine. I shared with him what I think home building is going to do (not move very much). He asked why people are still building - I explained that there are still people who want what they want but there are many more people who want a deal - and we discussed in detail about both his area of town and mine. We then discussed the resale market and remodeling (he lives in an older section of town where people remodel because they cannot build).

We were winding down our conversation and he brought up a hedge fund titan who had started making some very bold recommendations when it came to residential real estate. DISCLOSURE TIME: neither I nor he is recommending that you do, or do not, do the following. He said that this guy, who made literally billions during the downturn, was recommending that people purchase a first home, a second home, a third home and if they can afford it even more. His other piece of investment advice is that if you couldn't own additional homes, then lend money to people so that you can at least be involved in the ownership. He stated that this gentleman believes that we are at such a bottom in the real estate market right now and that there are so many people who are going to be wanting to purchase homes in the near (1-2 years?) future that to not own multiple homes is crazy.

I found our conversation very interesting because there seems to be a slew of people in his industry and mine that have very divergent views of what the future will hold. I believe that the residential rental market will continue to be strong for a long time. If you are looking for an investment property and you want to be a landlord, the numbers look very good. If you do not want to be a landlord, then you can still participate by hiring a property management company to be the landlord for you (yes, I offer those services to my clients) but the cash flow is reduced by those property management fees. He asked me for a good mortgage lender because we discussed some financing options for some of his rentals and I obliged.

We both stood up and stated that it had been too long and that we should do "this" more often. I agreed and as a final question asked him if he was going to act on the hedge fund head's statement about real estate. He said that although it was interesting, he was going to gather more information before he reacted. I thought that his choice of words was very good. And I'm going to reiterate those to you: don't react. Gather your information from someone you can trust, work with someone who knows what they're doing and work on an action plan with that person. Once you are in a position where you need to react, you're actually in a much weaker position because what you're dealing with is now controlling the situation.

Foreclosures/Bank Owned Properties/Short Sales

2010-10-08T11:10:00.000-04:00

As the real estate market continues to slog along, I have buyer-clients who are inquiring about "deals". Many times they view foreclosures, bank owned properties and short sales as these "deals". As I've disclaimed in the past and as I will continue to do so, I am not an attorney and am not giving legal advice. That being said I want to bring to the forefront some questions we all need to ask in order to ensure we're making the right decision(s) when it comes to real estate.

First off, yes, there are some very good deals in the market right now for buyers. For sellers? Not so much. It's true that if someone has their home on the market right now they probably "need" to sell. This need can be as simple as they have had enough of a larger home and want to downsize or it could be as dire as they're so far behind on their payments that they are facing foreclosure (which is a legal process and not just an end result) or they're "upside down" on their home (it's not worth as much as is owed on the mortgage). For this post, I'm only going to address "distressed" sales: in other words I'm going to ignore the people who are not financially strained.

When I first start working with a client looking for a deal, I take them through the process in working with a bank being involved with the seller. I explain to them that the bank is not interested in moving quickly (that's a whole other conversation), is not interested in listening to all the reasons why our offer is the best one, is not interested in anything other than making sure it takes the track that they want it to take. In other words, I explain to my clients that they really are falling in love with the idea of a home such as this, but not necessarily the home they have found. In other words; fall in love with the deal but not the home. Because, in actuality, they will probably need to negotiate on more than one purchase due to the high possibility of the first home not actually going to closing. There are a multitude of problems that can arise and almost all of them are on the seller's side and their paperwork ensures that it's going to happen and there's nothing the buyer can do about it.

In a short sale situation, there are actually two parties that need to approve the terms of the deal (purchase price, closing date, inspections, possession, everything). The first is the seller who owns the home; the second is the mortgage holder (and there very well can be more than one mortgage holder if the seller has gotten an equity line of credit that has a balance on it and even possibly a third mortgage). This second "group" of people has a say in EVERYTHING that the deal entails because they need to either agree to accept less than the payoff amount on the mortgage(s) or approve the fact that the payoff will be short and the people who on it will pay them at a later date. Therefore the term "short sale". So as you as the buyer are negotiating with the seller(s), patience will be the key because they will take their time to review all terms of the contract. In addition, they will be looking for better offers as they are negotiating your offer (remember, everyone likes a deal so it's very likely that there's more than one offer being negotiated). Lastly, it's not always the highest price that the bank looks for but rather what is the best deal for them (quick closing, cash buyer, etc).

On a bank owned property, it's a little better because you as the buyer are only negotiating with one group: the bank. But the amount of frustrations and the amount of time that is needed (along with the amount of patience) is just as much. You see, in both a short sale and a bank owned property, there is someone - more like a massive committee of people - who has to "sign off" on the deal to admit that the bank will be taking a loss to sell that home. Please realize that no one wants to lose money and no one wants to be the person in the bank who agrees to lose money on the deal. Yes, they know that they'll eventually have to do it; but no one wants to actually do it. And fundamentally, that's why those deals take SO LONG to come together.

Lastly, and this is just as important as the financial side of things, is that when you purchase that home, you are typically taking a much bigger risk of the condition of the home. When a person knows they will no longer be living in the home, what are the odds that they're maintaining that home? What are the chances that they've maintained the home for the past year or two? Changed the furnace filters? Painted the exterior to ensure that there's no wood rot? Taken care of the septic system to ensure that it isn't overflowing? Taken care of any small leaks that are minor to start but always turn major? The odds are that they've spent no time or money to do that. And the bank owned properties? What are the odds that a bank in California has any idea of the condition of a home in Columbus, Ohio? None. So when you're looking to purchase those homes you need to realize that you're really in a position of buying a home in a condition known as "where is, as is". In other words: the seller takes NO responsibility for the condition of the home and YOU ARE SIGNING A CONTRACT RELEASING THE BANK FROM ANY/ALL RESPONSIBILITY FOR THE CONDITION OF THE HOME.

So what do you, as a buyer, do? Well, you need to weigh your options very carefully. Is the home really a great deal? If you have the ability of purchasing the home for below market; when you bring it back to market condition have you just spent your savings? If you are hiring a contractor such as me to come in and do all the things that need to be done, is it still such a good deal? If you decide to remodel it to a nicer level than what is in the community, it's great and you'll love it but you no longer have the deal. What type of living conditions are you having your family live in until the home is brought up to snuff? I have a client that is looking at VERY distressed properties and most of them have mold. They have three small children. They cannot afford to purchase the home and stay where they are until the purchased home is fixed. I keep explaining to them that three small children and black mold are not a good combination. After the third conversation I think they are starting to get it.

In real estate, as is true many times in life, not all great deals are as great as they originally seemed. Do your homework, work with someone who KNOWS what they're doing (not just assumes they know what they're doing), make sure they're looking out for your best interest and not just looking for their next commission. The barometer I give my clients is fairly strict: if I do not feel that I want the listing in the future then I tell them that I typically don't want to help them with the current purchase. I'm different than many real estate agents because I have the experience in both real estate and construction so I know what it takes. And my clients appreciate that expertise when it comes to "great deals". Know your subject matter and know your clients well enough to be able to speak with them on a level of honesty that is best for them.

Ask An Expert

2010-10-05T15:25:00.000-04:00

The title to this blog is a little misleading; kind of. I'm not looking to explain how I'm the best at this or the expert at that. The purpose of this blog is to try and explain why who you DO hire doesn't need to be the expert about everything, but more importantly they need to know WHO the experts are when it comes to your specific needs.

I've been in the residential construction industry for about twenty years; home building, remodeling, renovations, insurance work, etc. I know many real estate agents and am very flattered when one of them calls me to ask me a "builder" question. This just happened yesterday and here are the details.

The agent that called me has a home listed and they have an offer on the home. As we all know, this is a down market and everyone's looking for a bargain. Okay, makes sense. The home that we are discussing has a finished basement but no bathroom in the basement. And there is no plumbing nearby so it would be a little messy and a little more expensive than usual to add a bathroom. The listing real estate agent called me to ask, approximately, what it should cost to put a bathroom in the basement. I asked a few questions and gave them a "ballpark estimate": it's a phrase I use because I haven't seen the job, don't know the finishes and there would be some details I needed before I could give a firm cost. That and I'm not up for the job, the real estate agent was just gathering information.

I gave the agent my numbers and said that it should be close, within 10%-15% or so. Out of curiosity I asked the agent what the buyers' agent had told her (they were looking for a reduction in sales price not for the work to be done). She chuckled a little bit and stated that the buyers' agent said it would cost................$15,000 to do the work. I laughed. I actually laughed pretty hard and stated that I'd be happy to do it for $14,900. You see, that cost was about TRIPLE of what it would actually cost to do the work. Now it's possible that the other agent was just trying to negotiate a better deal for her client, but based on what I know about the buyers' agent; she just didn't know and was blowing smoke everywhere.

Smart idea? Not really, and here's why. The buyers' agent is actually doing a HUGE disservice to her clients because she has set an expectation with her client that they should see a very large price reduction all because she didn't do her homework; she didn't have a good team in place. In addition, the sellers' agent is in a much stronger position to negotiate because she has the facts and will be looked to by BOTH parties as being the expert. The buyers' agent looks like a fool and in her buyers' eyes probably has lost their respect in her ability to negotiate on their behalf. Not good at all.

So why the title "Ask An Expert"? Well, in my humble opinion, the real estate agent who asked me for the real costs of doing the work put herself in such a better negotiating position on behalf of her clients than the agent who shot from the hip. Can the buyer go find another home in this market? Sure, well, kind of. You see, the home is in a community that's a little unique in that the homes are selling within just a few percentage points of asking price. The buyers' agent set such an unrealistic expectation that they will either not come up in price or the seller has such an upper hand that they will actually end up paying more than they "should" have due to the poor information.

When hiring a professional it's important to understand not just what they bring to the table, but also what their "team" brings to the table. I'm not specifically stating a group's direct team: but the team that they bring from their experience in the real world. Does the person you're hiring have the resources to be able to get you the answers you need? It's probably just as important to ask that question as it is what that person can do for you directly. In any situation, know not just what the person brings to the table themselves, but what resources they have at their fingertips.

As the great football coach Vince Lombardi once said, "none of us is as smart as all of us".

Leases, Lease/Purchase, Land Contracts

2010-09-23T16:27:00.000-04:00

I'm pretty fascinated with the legal profession in that they really do have their areas of expertise just like many other professions. But the one thing that comes up time and time again is the world of "contract law" and how it affects the real estate industry. In fact, it is probably the most negotiated aspect of real estate including purchase prices. I say this because there are many more "terms" of a contract than there is purchase price. Let's face it, if a contract price is negotiated more than three or four times it's pretty rare. You start low, I respond high, you come up a little, I come down a little and we usually end up within 20% of the middle. Yes, this market has changed things a little, but fundamentally that's the negotiation on price. Terms? Not even close. Look at any real estate contract and there are paragraphs upon paragraphs upon the terms of the deal: and that's in addition to the terms that will be negotiated.

What does this have to do with the title? Plenty, especially if you're a licensed real estate agent or you're working with a licensed real estate agent. You see, it's fine for someone to negotiate on their own behalf. However, almost no one does it. And hiring a real estate agent to help you buy, sell, lease or land contract a property for you is a game changer. Only people who are licensed to practice law in Ohio are allowed to practice law in Ohio. I know it sounds redundant, but it isn't. Filling in the real estate contract is not practicing law, it's filling in a form. There's more to it than that, but let's leave it as is for now. But defining a lease or a lease/purchase or let alone a land contract is not filling in a form but rather creating a contract. And doing it on another's behalf is not allowed.

I'm going to work backward a little bit. A very loose definition of a Land Contract is a "Contractual arrangement used in some states under which a buyer purchases real estate from a seller over a period of time, usually by making periodic installment payments. Title is not conveyed to the buyer until the final payment is made. Also called an article of agreement". Seems pretty simple, right? Wrong. Unless you own the real estate outright (no mortgage whatsoever, even one that's paid off), it's almost always illegal to do a land contract. Why you ask? Because all mortgages have a clause in them that says as soon as you sell your property you must pay off the mortgage. In a land contract, the deed doesn't not transfer but that does not mean you haven't sold the property. Splitting hairs? Your mortgage company doesn't think so. If you have questions regarding a land contract, contact your attorney. I'm not an attorney and I'm not giving any legal advice at all (disclaimer put in here on purpose).

I'm jumping to the front here and talking about a lease. You rent the property for a stated period of time for a stated amount. That's the end of that conversation.

A lease/purchase or lease to purchase is different. Different than a lease and nothing like a land contract. A lease/purchase agreement is when you agree to lease your property for a fixed period of time at a fixed amount and you have a contract for that same person to close on your home at the end of the lease period. In a lease/purchase agreement you have not sold the home; you are in contract to sell the home, but you haven't sold the home. That's a big difference to the bank (although you may have other issues and I'm not one to address those and therefore I'm not recommending you do anything before you speak with your attorney). However, if you've hired a real estate professional to help you market your home they can write the contract for the sale part but not for the lease part. And that's important for you because you want to make sure you're protected and you really want your agent protected as well. If there is a problem in the future, you want to be able to make sure you've done everything properly from a legal standpoint. And if you're the buyer you really do want the same thing. The last thing you want is a knock on your door and someone standing there stating you have 24 hours to move out and by the way, the down payment you gave the owner? Gone.

So to sum up: I'm not an attorney and I'm not giving any legal advice. Hire an attorney (you cheapskate) to work for you. What am I doing here? Informing, nothing but informing. I did this because it's the way a lot of real estate is being handled right now and will continue to do so in the future. There's no reason to be penny-wise and pound-foolish. Hire an expert to help you. It's well worth it not just in the long run, but in the short run as well.

Questions for me? Email me at jkahn@bdpsolutions.com.

Fall Home Maintenance

2010-09-22T15:24:00.000-04:00

Each season, especially here in the Midwest, brings an opportunity for me to write about some basic home maintenance. Not necessarily how to do them, but what to look for. First off, let me say that at anytime during the year if you see something that doesn't look quite right then it probably isn't. I have twenty years of experience in the construction industry and I still remember what my first boss told me the first time I went to the field to look at homes under construction: "if it looks like it isn't right, then it probably isn't". These words have stuck with me since then and I still keep them in my head every time I go to look at something.

The first thing you need to do is walk through your home as if you were a person who may be interested in purchasing it. Let's start in the basement. Is there a change in what you smell as you walk down the basement stairs? If so, then most likely you have some type of moisture in your basement. Your basement should not smell any different than the rest of your home. Let your nose lead you to the source of the smell. If you have insulation on your walls (and your basement isn't finished), lift up the insulation to see if it's wet, damp, moist or has "black stuff" growing on it. If so, then you have moisture on your walls. If it's wet you have a problem and need an expert to come in and help you with your water problem. If it's any of the others, put a dehumidifier in the area (one that can run constantly with a hose to a sump/drain). Also look up to see if there is any water on the underside of the floor above. Do this near the bathrooms, kitchen and even near where the hose bibbs are to the outside. Lastly, change the furnace filter and the humidifier pad (if you have a humidifier). Don't forget to turn the humidifier on as soon as the temperature consistently is in the 50-degree range and lower.

Next up is to walk around the first floor. Check to make sure all of the windows are closed properly and that there is no air leaking through. On double-hung windows, it's easy for the top sash to creep down some so make sure that they're all locking properly and that will give you the best seal. If you have casement windows then make sure all locking mechanisms are engaged properly. On very tall windows it's common for one mechanism to catch but the other not to catch (the top one is usually the tricky one). Look at the floor around the kitchen sink, dishwasher, toilets and vanities for any sign of water. If you see water, you need to take care of it right away. Look up at the ceilings and make sure you don't see any odd spots. Yellow on the ceiling usually means there's water coming from a source upstairs. If you have a vaulted ceiling or live in a one-story, that same yellow is from water but it is from the roof. Have it checked by a professional.

Lastly is the upstairs. Do the same window check, do the same water on the floor check and do the same ceiling check. If you have an attic furnace then you need to replace that air filter as well. Same with a humidifier pad if you have a humidifier in your attic system. While you're in the attic, look around (don't go climbing from truss to truss because you don't want to slip and go through the ceiling below). Do you see any light coming through your roof? Do you see any water spots on the underside of your roof sheathing? Any animals/rodents/bees nests up there? On all of those, get a professional in to take care of them now. And on your way down from the attic, make sure the attic access closes securely. No need to let the nice warm air that you paid for get up in the attic and then outside.

Speaking of the outside; this is where you need to let your eyes do the work. There are some obvious things to do; make sure your irrigation system has been shut down properly, disconnect ALL hoses from the hose bibbs so the ice doesn't backflow into the pipes, look for any loose or "lifted" shingles on the roof, look for any wood trim that needs some paint or replaced due to rot, look around the foundation to make sure the yard slopes away from the home, change any burnt out light bulbs in any of your exterior lighting. Just simple things.

Lastly, I want to reiterate the furnace filter changing. If you do this on a quarterly basis, your furnace should last you for years. If not, then you run the risk of dirt/dust buildup and that has to go somewhere so it ends up in the motor or the heat exchanger. Both bad places. Probably 50% of service calls on furnaces within the first 5 years can be avoided if you replace your filters on a regular basis. Have pets? Replace them monthly. It's an investment, not an expense.

If you have any specific questions, feel free to email me directly at jkahn@bdpsolutions.com.

When's The Market Going To Come Back?

2010-09-21T09:36:00.001-04:00

The title of this blog, "When's The Market Going To Come Back", is a question I get ALL of the time. As someone involved in home building, remodeling and real estate I am looked to as an authority on the subject (and I'm very thankful and flattered for that). The last question happened Sunday while I was eating lunch with my family at Chipotle (love their service, pricing, quality and the lime chips - www.chipotle.com). We ran into a family and my younger daughter goes to school with the three kids (they are triplets). We got to talking about ballet, The Nutcracker and middle school. The mom looked at me and inquired about a listing I have where we live (www.6265dublingranville.com) as to its price, why the people were selling, etc. All of the typical questions. I answered them all and invited her to see the home to which she said that she wasn't moving but did want to see it. Open House coming up so I invited her (and all of her friends).

We finished our conversation and said our pleasantries and our goodbyes and then they left. Then all of a sudden from the table behind where they were sitting I hear "when's the market going to come back"? I looked over and saw a lady sitting by herself. Nothing particular stood about this lady; she was dressed very casually (it was Chipotle), didn't have any makeup on (yes, I could tell from twenty feet), had somewhat of a smoker's voice and I was quite surprised she spoke up. However, I learned a long time ago that you just never know...

I responded with "that depends a lot on where you live and at what price point your home is currently at". She looked at me and said "that's fair, we live on R***** Court in N** A*****". She lived in a home that was close to the seven figure mark. That piqued my interest; I almost broke my own golden rule of you never know...

We chatted in great length about the area in general, her specific part of the neighborhood, her price point, when she bought her home, why she wanted to sell (her only son was already in college) and that they actually wanted to build another home in the area but much, much smaller (they have about 7000 SF now), what business she and her husband were in (they were - multiple - business owners), etc. So after about ten minutes of a very nice and engaging conversation she looked at me and said "soooooo, when's the market going to come back"? I chuckled not at her question but at her persistence. I am learning more and more almost everyday that people just want to know when they won't lose money on their homes. I gave her a very quick response of "2-5 years based on the inventory on the market along with the development that's currently happening". She was shocked to say the least.

I put up my hand and smiled and said "wait, don't get mad at me let's just look at the numbers". I proceeded to explain to her the current inventory and its pace of sale and how that will relate to the market coming back. Then I said something that shocked her even more: I stated that the market coming back was much more of a mental measurement than a calculated measurement. Here's why: people will take action based more on what they perceive to be happening as opposed to what may actually be happening. Don't believe me? Take for example the real estate market five years ago when things were BOOMING. People bought homes as an investment that they were convinced would appreciate by 10% a year, year on year. The statistics showed them that it was impossible to maintain that growth but they did it anyway because they BELIEVED that it was true.

So here's my answer for today: the market comes back in 3-5 years but for right now, we will see "the new normal" in 1-2 years. What's the new normal? People having the confidence to purchase a home and knowing they won't lose, or make, 10% a year on it.

My conversation companion looked at me and said "that makes sense and it really works for us. Our son will be out of college and that's perfect timing for us. Give me your card because I would like you to meet with my husband and me to continue the conversation". I couldn't ask for anything more.

My (Your) Pet

2010-09-20T09:39:00.003-04:00

Let me start off by saying that I like animals; pets to be more specific. I've had my share of dogs, and really enjoyed them. However, at this time, I don't have any pets. You see, in my world we build a new home every 3-5 years and then sell it and do it all over again. My big concern is that someone will love my home but not buy it because of a pet. I know, "they should understand". But in this market it's tough for someone to overlook anything at all.

If your home is on the market or you're thinking about putting it on the market, then there are a few things you need to do. First off, DO NOT get rid of Fido, Fifi or Tiger. It's your home and they're your pets and keep it that way. However, do go around and clean; clean like you've never cleaned before. Look for the stray hairs on the baseboard, look VERY closely at all the carpeting and try to see what others cannot. This will put you one step ahead.

Secondly, have a friend who isn't a "pet person" to come over and give you an honest opinion of your home. These people typically have very sensitive noses and quite possibly allergies. If they can smell and and see it then so can people looking to purchase your home. Listen to them, take their advice and for goodness sake do not be offended by what they're saying. They're there to help you: you should be thanking them.

Thirdly, if there is an issue, bring in a professional cleaning company to make it go away. If it's beyond that, then it's time to start replacing carpet and painting walls. You'll need to do it anyway so why not do it before someone eliminates your home? Remember, you want to put your best foot forward ALL THE TIME.

Lastly, I'll share a true story with you. I have a listing and they have cats. The people very interested in the home also have cats. But, here's the kicker: the potential buyers of the home are saying that the smell of cat urine is so overwhelming that they're afraid to purchase the home because they feel that their cats will also start urinating all over the place. The seller's contend that there is no smell and that the potential buyer is just negotiating. I'm not an expert, but I do understand that if you're too close to a situation then sometimes you don't see it for what it really is. Skipping ahead a little, the potential buyers decided to bring a "black lamp" to see any stains on the carpet. "Holy Cow" was what the seller's agent told me. There was almost none of the basement carpet that was clean; it was layered with cat urine. Believe the buyer's agent? I did, because I know the seller and how defensive they are about the cats. So unfortunately it is now on me to have the conversation with my buyer. It wasn't pleasant and they still don't believe the buyer (who has offered to show me, but without the seller there). Pretty strong conviction to say the least.

To wrap up; be objective, proactive and smart about listing your home. Don't help potential buyers eliminate your home. Help potential buyers choose your home.

My Neighborhood

2010-09-17T14:32:00.003-04:00

Like everybody else, I have seen a decline in the value of the homes where I live. Yes, I have been frustrated just like everyone else. Actually, I've been more frustrated because my home is for sale. I've decided to take a little bit of my own advice: stop, look and listen (corny, but it's effective). Stick with me.

You see, I built my own home about five years ago. At the peak of the peak of the market. As a builder, everyone thinks I built my home for free. Let me be the first to say that I wish that were true but it wasn't. Did I build it for a better price than other people in my neighborhood? Does a barista at Starbucks get a discount on coffee? Of course I did.

Here's the kicker: I am in the same boat as all of my clients who have their home for sale. I needed to stop worrying about what I couldn't control (the market), look around and determine if I'm okay with selling my home in this economy (I am) and listen to my own advice. What is that? That the real estate market, like any/all markets, is cyclical and this too shall pass. When? Well, my crystal ball prediction(s) will have to come in the next post.

The Luxury Market

2010-08-16T16:03:00.002-04:00

Well, here we are into one of the most not-so-friendly housing slumps in literally decades. The tax credit helped to boost the first-time home buyer but didn't really help the move-up buyer (remember that there was also a $6500 tax credit). There are many questions but very few answers other than "I don't know". It's not just me, it's everyone in the business including the economists, the builders, the real estate agents, the appraisers and certainly the banks. With the "I don't know" answer, I give you one more possibility.

There are still many people who are making very good money and want to live in an executive home. To those people I present the Lease or Lease/Purchase option. Let's talk a little bit about the numbers. If you want to purchase an executive home, you are most likely looking at putting 20% (sometimes less but certainly sometimes more) as a down payment. If you came out of your home and didn't do so well (better than saying you took a bath) that 20% down is hard to come by.

Now let's say that you have some money saved, but that you don't want to utilize all of it or it's just not enough for the down payment. I give you the solution: either a lease or a lease/purchase. The reality of the situation for most people is that they work very hard for their money and want a nice place to live. And this isn't the best time to be buying a home. That's okay, the market will come back. So if you're interested in living in a nice home, go rent it. Don't lock yourself into a too long of a term lease (one year is advisable and two years is getting a little out there). If you decide to purchase the home, I'm sure the seller will allow you to do so and break the lease without penalty. At least a reasonable person would...

First Post: The Central Ohio Real Estate Market

2010-07-28T15:12:00.003-04:00

So, I've decided to become a "blogger". Well, not really. I've been blogging about residential construction (both home building and remodeling) for a while but got a little away from that over the past few months (http://triobuilderblog.blogspot.com/). Now, since I've been immersed in the real estate market as a Realtor, I'll be doing some blogging. Probably some shorter nuggets about the Columbus Real Estate Market. I'll be discussing items such as how to search for a home, how to work with a Realtor, financing, new construction (duh), some remodeling, some shameless plugs for remodeling (www.triohomesolutions) and home building (www.triocustomhomes.com) and some additional topics.

I'll definitely keep it simple and short and more importantly, no matter the news, I'll keep it honest. I'm not one to say "everything's great" just to try to convince people they should do something. Hang in there with me and let me know your thoughts.