Ohio Real Estate Blog

Tuesday, 19 October 2010

You find a neat "fixer-upper," then learn that banks won't lend until the repairs are done, but the repairs can't be completed until the house is purchased! This Catch-22 scenario can be solved by HUD's FHA-backed 203(k) "rehab loan," growing in popularity because so many foreclosure purchases are in dire need of repairs.

This loan covers the cost of the home, plus money for repairs up to a maximum of $35,000! To get the ball rolling, you'll need funds for the 3.5% required down payment, and then to find a suitable property. Your real estate representative will prepare your offer, stating that you'll be seeking 203(k) financing.

Next you'll apply to an FHA-approved lender, including a sheet listing each repair and its cost. Finally, an appraisal is performed to determine the value of the home once the proposed repairs are completed.

Upon approval, you'll have financed the home purchase plus all your proposed repairs. Keep in mind that you'll be doing all the leg work to get the estimates for the repairs. Also, you cannot make the repairs yourself, you must hire a qualified contractor to do all the repairs. At closing, the seller receives the purchase price, and the remaining funds go into escrow, to be disbursed to the contractor as work is completed over the next 6 months.

Real estate agents support this loan program because it expands home ownership and revitalizes neighborhoods, but all you need to know is that it will get you into a very affordable home. However, you'll need to be very patient because these loans typically take 90 days or longer to close.

Posted by: Kathy Henne AT 10:02 am | Permalink | Email

Tuesday, 12 October 2010

Beware of selling without representation

When you hear that someone managed to sell a home without representation, it's likely that the sale was to a family member, close friend, or a tenant who was already renting and living there. These exceptional cases are not the norm, and there are powerful reasons why it is so difficult to make a sale "by owner."

The biggest roadblock is that For Sale By Owners (FSBOs) aren't included in the Multiple Listing Service (MLS) that licensed agents and organizations use. A sign in the yard and an ad in the newspaper are no match for the widespread exposure gained from a listing visible to the agents on the MLS.

Since the FSBO has no listing agreement providing for a brokerage fee, many agents won't show these homes with no promise of compensation. Again, this greatly reduces the number of potential buyers exposed to the offering, not to mention the fact that buyers who do express interest will not have been screened by a professional to determine their qualifications.

Perhaps the most hazardous aspect of selling "by owner" is the potential for legal oversights and complications. Real estate transactions are loaded with potential liability for unrepresented an unwitting sellers. One overlooked form or improper disclosure could generate an expensive lawsuit.

The average home's sale price is around $100,000. Would you buy $100,000 worth of stock without the help of a qualified stock broker? Would you represent yourself in a $100,000 lawsuit? Probably not, so why would you consider selling your home without representation?

Posted by: AT 11:41 am | Permalink | Email

Monday, 11 October 2010

Recent Piqua Area Real Estate Sales 10/1 to 10/31/10

Recent Piqua Area Real Estate Sales

The local Multiple Listing Service lists these Piqua homes as sold with real estate agents.

1201 Clark, Piqua, 3 bed, 1 bath, list price $79,900, sale price $77,400, 46 days on market

321 Brentwood, Piqua, 3 bed, 1 bath, list price $78,000, sale price $75,000, 59 days on market

612 Beverly, Piqua, 3 bed, 1 bath, list price $52,900, sale price $51,500, 45 days on market

620 Manier, Piqua, 2 bed, 1 bath, list price $49,900, sale price $51,600, 8 days on market

10780 Patterson, Piqua, 3 bed, 2 bath, list price $94,900, sale price $97,385, 55 days on market

720 Vine, Piqua, 2 bed, 1 bath, list price $27,900, sale price $27,000, 66 days on market

511 New, Piqua, 3 bed, 1 bath, original list price $50,000, list price at sale $39,900, sale price $35,500, 86 days on market

616 Sunset, Piqua, 3 bed, 1 bath, list price $57,900, sale price $54,900, 72 days on market

10690 Fairview, Piqua, 3 bed, 1.5 bath, list price $95,000, sale price $93,000, 15 days on market

10690 Fairview, Piqua, 3 bed, 1 bath, list price $95,000, sale price $93,000, 15 days on market

Keep in mind that the seller may have paid for the buyer's closing costs which reflect in the sales price. For more information on these Piqua area homes or any homes in Miami or Shelby counties, please contact Kathy Henne at 937-778-3961 or Kathy@KathyHenneTeam.com

Posted by: Kathy Henne AT 03:08 pm | Permalink | 0 Comments | Email

Monday, 11 October 2010

New Listings Of Homes For Sale in Piqua Area

Real Estate For Sale In Piqua Area

Homes for sale in Piqua, Ohio area

1029 W North, Piqua, 4 bed, 1 bath, $80,000

209 Garnsey, Piqua, 3 bed, 1 bath, $50,000

1045 Mayfield, Troy, 3 bed, 1 bath, $95,000

For more information on these homes or any homes in Miami or Shelby counties, please contact Kathy Henne at 937-778-3961 or Kathy@KathyHenneTeam.com

Posted by: Kathy Henne AT 03:02 pm | Permalink | 0 Comments | Email

Tuesday, 05 October 2010

When Less Costs More

"Timing the Market" in real estate doesn't work the way it does with stocks. Homes are bought and sold more out of necessity than to make an easy buck. However, some indicators give a clue when it's a good time to buy. Like now!

Because rates are low and prices have dropped, now is the time to move if you have good credit and funds for a down payment. It would be a mistake to "wait and see" if rates or prices fall any more. Why?

Rates are low now because of federal bailouts, but continued low rates can fuel inflation. Fear of inflation causes "the Fed" to raise those rates. Waiting for a lower price on a home while interest rates rise could make the home more expensive.

Example: purchasing a home now for $177,000 at 5% interest could make the total cost around $370,000 by the end of the loan term. But what if you wait for prices to fall more, and next year you get that home for $160,000. You saved $17,000 - right? Wrong!

If rates rise 2% during that time, you could pay over $400,000 over the life of the loan - $30,000 more than if you bought now! If the math is still fuzzy to you, talk to an experienced loan officer and crunch some numbers. You'll be glad you did.

Posted by: Kathy Henne AT 12:49 pm | Permalink | Email