In Search of the Most Accurate Real Estate Listings

Have you ever wondered about the way local real estate listings appear on your screen when you search for houses for sale through one of the search engines? If you have already found a local Realtor’s^® website (like this one!), it’s easy to search the local listings right from that site without bothering further. You’ll come up with the most current accurate information because it represents direct updated information from the local multiple listing service.

But whenever you go searching for local listings through Google, Bing, or any of the other search engines (there are scads of them), you will see that what comes up will be quite different. You may find individual house listings, alternating with real estate agency home pages, mixed in with aggregators like Zillow and real estate magazine ads. Depending upon which search engine and the way you phrase your inquiry, you might actually come up with an interesting listing…or one that’s peculiarly inappropriate—like a listing from another town or state—or one that’s been out of date for months.

There are reasons for such disorder. They have to do with a historical scramble that has been going on ever since computers and the web started making house-hunting something you could do from your own living room. The logical first stage came about rapidly, as local realtors everywhere started putting their listings on their websites, then working out the technical details to allow the whole area’s MLS listings to appear.

Then came the original aggregators: Trulia, Zillow, Realtor.com—the deep-pocketed media companies that worked out ways to combine web data from all over to make listings into one gigantic national database. Except for house-hunters who weren’t set on moving to a particular area, the advantage to nationalizing the listings did not really go to the consumer—it went to the aggregators (also called ‘syndicators’). Since they could offer their information to a nation-sized audience, they could afford nation-sized advertising budgets to attract more views. Since they got more views, the search engines automatically found them to be ‘more popular’ than mere local agency sites, so their listings moved to the top of the search engine results pages.

It was a self-perpetuating cycle, especially once the aggregators started selling ‘spaces’ for local listings back to my colleagues, who were watching their own sites lose out in the race to attract web searchers. The aggregators were actually charging real estate agents to place their own listings on the aggregators’ pages! Realtors did not see the humor in this—and there are some ongoing legal challenges to illustrate their lack of appreciation.

The reason that this makes a difference to you is that the original purpose of the big aggregators was to make searching easier for you, the local homeowner or listing searcher. One problem is that keeping listing data current and error-free has always been a problem for anyone with a nation-wide database to administer. Another is that data from other sources (like Craigslist ads) has been known to appear mixed in with verified listings. Since their authenticity is a sometimes thing, that can be downright misleading.

The upshot is that for serious house hunters, the best place to look for local listings is right here, on a site like mine—where I have a daily local connection with the properties that appear. Then, when you find the homes that look like they could be what you are looking for, all that’s left is to give me a call!     

Features Designed to Inspire Luxury Home Buyers   

When it comes to selling luxury homes, you really can’t pigeonhole who the ‘typical’ buyer is likely to be. The 9% of buyers that make up the pool of ‘affluent’ prospects are themselves pretty much profile-proof—and the dollar value that 9% represents fluctuates substantially from one end of the country to the other. On the other hand, it is possible to take advantage of features that are growing in popularity with today’s luxury home buyers.

Realtytimes researchers found that affluent buyers are increasingly attracted to features that belong in the smart-home technology category. Smart thermostats that owners control right from their smartphones, wireless homes security camera arrays, and fully tricked-out home theaters are draws. To qualify at the high end, an entertainment center really should be controlled by a single device. Let’s face it: no matter how fancy a home theater might be, if three or four remote controls are visible, they’re certain to draw scowls!

Kitchen tech—of the kind that marries function with fashion—continues to gain in popularity. Bringing professional-level tools into domestic kitchens is a goal being incorporated in more and more top kitchen appliance offerings. On the leading edge: ovens with high-performance steam generators as well as blast chillers with touch-sensitive, intuitive user interfaces. All are designed “to create the kitchen that’s right”—one to match a buyer’s “level of culinary daring.” Digital Interiors found that 94% of such buyers “would sacrifice 1,00 square feet of living space for more technology…”—but keep in mind that most researchers find that, with few exceptions, 3,500 square feet is the non-urban baseline for qualifying in this market. 

Selling luxury homes used to begin with location, location, location. But that may be undergoing a subtle shift. In Luxurydefined, one leading point is made that traditionally prominent ZIP codes are “no longer the defining baseline” for luxury homes. Newly included are areas where there is a “slower perceived tempo of life”—which fits in with the emerging interest in homes with ‘experiential’ features (like meditation gardens or outdoor showers).

 Few local luxury homes have those particular features, but being turnkey-ready is another matter. Brand new homes qualify automatically, but as has always been the case, existing residences that compete with other high-end homes in the local market can be expected to do best when they qualify as one of the ‘just bring your toothbrush’ properties.

Affluent prospects may be well-heeled, but they are also increasingly attentive to energy-efficient features. Some new homes designed with the luxury market in the crosshairs boast of ‘super-efficient’ floorplans built to consume 50% less energy than typical new homes. The draw is not entirely economical, either. That’s evidenced in how the current dip in energy costs hasn’t resulted in a proportional tapering in demand for homes reflecting conscious living (features reflecting environmental awareness and sustainability).

Luxury home owners, like their prospective buyers, have a pretty clear idea of what they demand when it comes to selling their properties. First and foremost: an agent with comprehensive knowledge of the local market—and experience with luxury homes. According to Money magazine, sales at the high end are growing faster than in any other market segment…which is another way of pointing out that if you are looking to get into a luxury home, now is a pretty good time to give me a call!

Elderly Housing Wider than Ever Before

As we residents age, we grow wiser—at least we hope we will. If we take good care of ourselves, are lucky enough to have inherited good genes, and have some luck, too, we hope to be able to stay physically and mentally active long past many of the birthdays that used to mark old age—or even “advanced old age.”

But if wisdom does actually accrue along the way, even the spryest seniors eventually begin to consider whether it might not be a good idea to explore some of today’s alternative post-retirement residential directions. Advil or not, the most physically active seniors will tell you the morning after a full round of golf or a couple of sets of tennis: ouch! Even copious amounts of positive thinking can’t match the persuasive power of aching joints and muscles. Some accommodations to Father Time are going to be called for…

It turns out that on this front, there is a lot of good news developing out there. Probably because the massive wave of Baby Boomers is sweeping into traditional retirement age, more and more residential options are opening up. Local residents approaching retirement have more choices than ever before. Some of the major headings include—    

·       Staying with family. This used to be the hands-down leading choice when infirmity was at hand: moving in with care-taking relatives (or the reverse). This can be a terrific solution when the family situation fits and doesn’t create unworkable demands on family members.

·       Roommates. Sometimes sharing living quarters is an alternative that isn’t given much consideration, but a homeowner who could use help with daily living chores can choose to share their home in exchange for help with shopping, cooking, cleaning, etc.

·       Board-and-Care Homes are usually small-scale: residences that provide room and board and varying degrees of daily activity support.

·       Congregate Housing caters to seniors able to take care of themselves; providing meals, communal activities, and/or housekeeping services. Retirement Communities can add resort-level facilities and activities into the mix.

·       Assisted Living residences—all the way to full Nursing Homes—provide levels of care from minimal all the way to skilled nursing support.

·       Continuing Care Retirement Communities—are designed to meet the reality that residence and assistance needs change over time. CCRCs consist of separate apartment-style or condominium units as well as full assisted-living facilities. Residents can move from one to the other if more independent living becomes impractical. Residents pay an entrance fee and monthly charges (they can be hefty)—but CCRCs have the advantage of allowing residents to remain in a familiar community at junctures when a greater dislocation would be much more stressful.

Of course, many local seniors are not about to even consider moving away from the area, choosing instead to simply look into downsizing—or switching to a more [knee-friendly] stairless neighborhood home. For those and other real estate endeavors, I’m here to help!

Real Estate Listings Are Designed For Simplicity

 

The first stop for anyone looking for a new home in the local area—or for anyone who is even mildly curious about what properties are currently available—is the local real estate listings. Like those you find here on my site, today’s online real estate listings are updated regularly all across the internet. It’s a coordinated system that appears deceptively simple on the surface, bringing you what you ask for from within the mind-bogglingly vast amount of detail that encompasses all the properties being offered throughout the country at that moment.  

When a prospective buyer goes online to get a feel for the local properties being offered, the real estate listings she or he sees appear to be straightforward enough. The information is clearly formatted, presented in a way that makes it easy to compare with other properties’ attributes. That apparent simplicity might be a little bit misleading, as anyone who has recently put their own home on the market knows.  

Before any listing goes online, all the property’s physical details have to be determined and verified. It’s your agent’s job to make sure the paperwork is complete—including the legal documentation that says, yes, this property is for sale at this amount. The 2015 NAR^® handbook on multiple listing policy (MLS) fills 152 pages for good reason. ‘Under the hood’ of the neighborhood listings is the structure of legal agreements that stitch together the cooperative framework that enables the smooth functioning of the modern real estate industry. Stripped of all its legal bells and whistles, it’s really an agreement among brokers and agents who agree to the way work will be apportioned and commissions shared. 

As you might expect, those 152 pages also cover some special kinds of real estate listings. Homeowners, for instance, can create local real estate listings that are not made public. This is done when the seller withholds consent for a listing to be published within the MLS compilation. Although that might seem to be a particularly bad idea—like a candidate running for office who decides it would be a good idea to keep his name off the ballot—there are circumstances when it makes sense. Such ‘office exclusive’ listings can serve a useful purpose when maximum confidentiality is important. Celebrities and other public figures sometimes use this approach, as do sellers who’d rather not publicize their plan to jump ship until it’s a fait accompli.

All this is made as simple and straightforward as possible for the benefit of all. If it were too complex, sellers and buyers would hesitate to get involved. The market would suffer. In fact, today’s local listings—especially as they are presented online, on sites like this one— represent a standout example of how technology can make even complicated commercial undertakings easier and more efficient than they have ever been. To find your next home, for instance, you need only check out the current local listings, and then there’s only one other thing you have to do: call me up!

Greater Cincinnati Homeowners Should Prepare For An El Niño Winter

With fall newly arrived, it’s a time of year when local homeowners can breathe a sigh of relief; relax and take it easy. With summer behind us, most gardens require less attention. The demands harsh winter weather will make are off in the distant future— or are they?

This year it might be prudent for local homeowners to mentally remove a month or two from their home maintenance timetables. The reason comes in two familiar words (and they aren’t English): El Niño.

According to the government’s NOAA climate forecasters, there is “an approximately 95% chance that El Niño will continue through Northern Hemisphere winter 2015-2016…” Since that  definitely includes southwest Ohio, they’re speaking to us.  They answer the question, “How strong is this El Niño now?” with, “it’s pretty strong.”  In August, it ranked second all-time (behind August 1997) in the Equatorial Southern Oscillation Index, which is one way of measuring its power. El Niño is the condition where weather shifts occur due to a change in warm ocean currents in the Pacific.

What this means to local homeowners is as unpredictable as…well, as the weather! What is acknowledged is that normal patterns can be disrupted to varying degrees. The reason we can never get much clarity about how it’s going to affect us is that (unsatisfying though this answer may be), winter could be markedly more—or markedly less—stormy than usual. Since the maximum effect is expected in late fall through December (hence the Christmas allusion of the ‘El Niño’ name), local homeowners might consider getting on with their winter maintenance preparations earlier rather than later.

So here—a bit earlier than usual—are some regular fall maintenance heads-ups:

·       Check and fill the exterior gaps where critters, bugs, and cold air might enter

·       Chimney maintenance: if you sweep once a year, schedule now

·       Rain gutter check: even though leaves haven’t begun to fall in earnest, cleaning out the mucky old debris now will make later leaf removal a breeze

·       Inspect the roof: if damage has happened, now is the time to schedule repair

·       Ditto the driveway: fill cracks before winter

·       Now is the perfect time to clean and stain the deck. Depending on how much sunlight it gets, it may need to be renewed annually (no matter what the stain can says!)

·       Replace worn weather stripping around doors and windows—your winter heating bills will reward the effort.

As a check of comments on the weather sites confirms, local homeowners have differing memories of how previous El Niños have affected them. But since we are now officially in an El Niño year—it can’t be a bad idea to prepare ahead of time (and if you have  real estate plans in the offing, now would also be a good time to give me a call)!

Tough Sell: Think about Selling Your Home…to Yourself

If you are at all typical, you probably won’t put even minimal thought into planning for selling your home until there’s a good reason to do so. One of the best parts of being a homeowner is the comfort you feel from having a stable home base. For a lot of us, thinking about selling your home (and then finding another; then moving) produces the opposite reaction. If we don’t have to start planning for migrating the whole household, we’d just rather not, thank you very much.

 In truth, doing this theoretically-only kind of thinking won’t be so disquieting. Since an actual sale and move is nowhere on the horizon, thinking about how you would prepare isn’t nearly as stressful as the real thing. And there are a couple of practical reasons why it can be worthwhile:

REASON 1: When it comes to actually selling your home, you will almost certainly find some minor (and even major) features that must be changed to make the place more appealing to prospective buyers. It might be upgrading or expanding a backyard deck; it might be turning a shopworn kitchen island into a butcher block showpiece.

Some of those upgrades might involve a level of expense that we’d postpone until it was absolutely necessary. Yet as a business proposition when you’re selling your home, such improvements may be just what’s needed to make your place an irresistible buy.

So the first good reason to plan for selling when you have no intention of selling is that, instead of passing on a more livable place to the next owner, you get to benefit from living in the much more livable place yourself! This is really the best reason. It’s amazing how often I hear sellers say, “(big sigh) I wish I’d done that years ago. Why didn’t I do that years ago?”  

REASON 2: When you’re not planning to sell your home anytime soon (or perhaps anytime at all), you have an advantage that won’t be available when selling is imminent. That’s the ability to think about how the place will look and feel five or ten or twenty years down the line—and doing something to make it the best it can be. Most often, this involves landscaping decisions that can be made now for a next to nothing—and yield big dividends later on. Saplings that are inexpensive to plant this year can grow to provide shade and peaceful beauty a decade hence. Likewise, a problem tree that’s perfect right now (but whose roots will one day undermine your front walkway) might be mitigated by a young replacement nearby. When the offending tree has to be removed, the area won’t left barren.

Thinking about the selling of your home long before you have any serious plans to do so is a little like selling your home to yourself. You’re a discriminating prospect, after all. If a few improvements will make the place a richer environment for all the years you and your family will be living there, it’s certainly worth thinking about—and acting on—before the time comes to move on. 

P.S. And just in case the time for selling your home arrive sooner rather than later, I’d be delighted if you will consider giving me a call!

Deciding If “Fixer-upper” Is The Right Deal For You

You know them when you see them—especially when going through the home-for-sale listings, where their photos probably lack quite the allure of the others. You can also spot them by some cautiously-phrased tip-off language. They are “handyman specials” that are offered “as-is” or that “need attention” or “TLC”. A perplexingly low asking price is a dead giveaway, too. Most often, if, considering the features listed, the number is too good to be true, you’re looking at a fixer-upper.

If you are house hunting, are they worth looking into? Or if you own one, should you do the fixing-up? How do you make a rational decision?

First, about whether to get to work before you offer your own fixer-upper to the world:

It’s true that a fixer-upper can be a serious magnet for prospective buyers, particularly when those buyers aren’t averse to putting in some old-fashioned elbow grease. If you are able to accept the kind of low sales price that will make yours a standout from competitors, it’s bound to attract a lot of interest from budget-minded householders—as well as professional house-flippers and contractors who work on their own account.

The rule of thumb for owners readying a property for sale is to investigate whether smaller replacement projects—the kind that add curb appeal and/or kitchen glamor—are likely to boost the home’s value above the cost of the undertaking. Most reports on the subject find that large-scale projects seldom return even 80% of their cost, although when chosen strategically, per the NAR^® “…they can improve the market position of the property in relation to the competition.” (Translation: move it out of the ‘fixer-upper’ category).

From a non-professional buyer’s point of view, though, the question is whether the fixer-upper route is a better choice than the costlier home buying options. If you have little interest in extensive DIY projects or decorating overhauls, you already know the answer: skip the fixer-uppers. You have to be enthusiastic to make one of those worth the undertaking. You needn’t bother with any of the super bargains with listings that admit “needs some TLC.”

If you are on the fence, the answer may well lie in a careful appraisal of what will be needed to bring the candidate up to neighborhood standards. If you are an experienced DIYer, there are software packages available that can help you estimate expenses. If not, our contractors will be able to provide an itemized ballpark estimate for such a project. If the combined cost of purchase and upgrades still create an attractive package—and you are prepared for some dislocation as major work is being done—a fixer-upper is worth serious consideration.

This fall, the local market has offerings with real value in every category. Always remember that every home that is listed on the market has a story or history that can’t be  gleaned from perusing the home’s marketing description… Call me at (513) 659-2284 to get the complete low-down on any and all homes that pique your interest!       

Stock Market in Turbulent Contrast to Serene Real Estate

Last week was a head-swiveling version of a follow-the-dots puzzle for those who keep tabs on national news related to local real estate. Children like following the numbered dots to reveal a picture. You can’t be sure what it will turn out to look like until the end. The week was a lot like that:

 Monday led off with the release of housing-builder sentiment: its best reading in 10 years! It was given credit for reversing an early-day 100+ point stock market drop. When the Dow closed up 68 points for the day, real estate performance got the kudos.

Monday’s dot connected to the next one, which appeared as USA Today’s early Tuesday dispatch pointing out that the previous day’s market rescue was hardly a flash in the pan. The Money section’s lead story, “Housing Provides Much-Needed Lift to Wall Street” drew a broader picture. In a ho-hum year for the broader stock market, housing-related stocks were uniformly “among the best-performing shares.” The S&P 500 may have been up less than 2% for the year, but homebuilders’ shares were up 13%; home-improvement retailers, 11.1%; home furnishings stocks, a blistering 26.1%! The reason was “the power of the resurgent real estate market to generate positive action in the stock market.”

Then, on Wednesday, CoreLogic provided the next dot with its release of the August MarketPulse roundup, pointing to a 6.5% increase in its national home price index. This was the logical next dot—one that was hardly unexpected. The predicted continuation of price increases was again explained by lean inventories, continuing low mortgage rates, and consumer confidence rated “the most optimistic in eight years.”

Thursday’s dots had been anticipated, too: the morning announcement of July existing-home sales marked the 41^st consecutive month of year-over-year price gains. Volume was up, too, as sales topped an annual level of 5.5 million for the first time since early 2007. The Street took that as “just the latest confirmation that the housing nightmare is mostly over.”

By Friday, the last dots appeared in calm contrast to the frenetic news from Wall Street, which completed its worst week in five years. Even the real estate industry stocks which had rescued the day on Monday couldn’t buck the outrushing tide of equity losses. But the last dot for local real estate watchers was found in the analysts’ post mortems after the market’s close, as speculation increased that the carnage on Wall Street might well be sufficient to nudge Federal Reserve decision makers away from raising interest rates in September. Real estate trackers were able to put their pencils down and relax for the weekend.

So, what was the picture the follow-the-dots puzzle revealed? The real estate industry dots seemed to trace a simple circle…with a curved line near the bottom that looked a lot like a smile.

Whether or not local real estate offerings continue to benefit from historically low mortgage interest rates (they dropped again last week!), there are definitely great opportunities for buyers and sellers. Give me a call whenever you feel the time is right to take advantage of today’s market!  

Important Tips To Know About Cincinnati MLS Listings

Wouldn’t it be great if high schools started a Driver’s Education kind of class for real estate? At some point—I think it was in the 1930s—Americans realized that it would be a good idea for the public schools to offer Driver’s Ed, just as a matter of public safety. If you’ve ever tried to deal with a clutch and stick shift built before the mid-50s, you’ll understand the need. Too bad the damage that can result from lack of real estate knowledge isn’t as obvious as a dented garage door.

The first Realty Ed class session could deal with the history of MLS listings. Even given the void in the school system, a teenager wouldn’t need much real estate exposure to have at least heard of “the listings.” “The Multiples” is more obscure, as is “MLS” (when you Google that, you get a lot of major league soccer sites).

They are all jargon that refer to the information published by “the” Multiple Listing Service. “The” is in quotes because there isn’t just one Multiple Listing Service in the United States; there are many different ones, run by different companies. Our Cincinnati MLS Listings are produced by our MLS Listing publisher, who cooperates with others across the country to come up with the not-quite-exactly-uniform format you see when you go searching online for greater Cincinnati homes for sale.

If the high school kids’ first homework assignment is to go online to check out the local MLS listings (like the ones I provide), what they find looks quite straightforward and self-explanatory. They see pictures and descriptions of each property for sale, an asking price, and details that a future owner would want to know. Square footage, lot size, the year built, number and types of rooms are all there, making it easy to compare properties. There may be more details in some of the listings than in others, but the real estate agent who prepares the MLS listing makes sure the most important elements are covered.

What will not be obvious to the students (but what will make excellent Friday quiz material) is how the Cincinnati MLS listings embody other elements that are commercial and legal. Behind each of the listings (under the hood, in Driver’s Ed terms) is the fact that an MLS listing ordinarily represents a contractual offer by the listing brokerage to compensate other real estate professionals who represent potential buyers…which means it also is ordinarily evidences that the owner of the listed property has made a separate “listing agreement” with the listing broker.

Later on in the semester, there will need to be a discussion of FSBOs and the whole “For Sale by Owner” situation. It’s likely that one of the more troublesome ‘A’ students will then certainly raise her hand to ask something like, “Well then what happens when there is a Cincinnati MLS listing for a FSBO property? Doesn’t that mean there isn’t a listing broker to make the offer to compensate other real estate professionals who represent potential buyers?”

That will be the moment when it is again demonstrated why teachers need three months off every year.

Our Cincinnati MLS listings are a superb way to organize today’s active real estate offerings—but they are only one of many elements. Call me for expert assistance in getting all those elements fall into place!  

Homeowners Cheer U.S. Return to Housing Value Highs

For homeowners, the news was a long time coming. The bounce back from last decade’s dizzying plummet in the nation’s residential housing values has been underway for quite a while now—but those values hadn’t quite returned to their former heights.

Until last month!

The Wall Street Journal was early to break the long-awaited headline, “Existing-Home Prices Hit Record: $236,400.” Using just-released June sales numbers, the Journal reported that the nation’s average housing prices now topped the previous high water mark set in 2006. It meant that a lot of paper losses have been obliterated—and the return of full nights’ sleep for many U.S. homeowners who have long been underwater.

Another aspect of June’s housing report card could also ease nerves on a wider scale. USA Today led with it: “Existing homes were sold at the fastest pace in eight years…” It quoted the NAR’s Lawrence Yun as pronouncing this year’s spring buying season “the strongest since the economic turndown.”

That’s where the current housing market profile seems to differ in kind from the previous peak of $230,400, registered in July 2006. That mark was reached after sales volume had started to fall. Prices then followed, starting with a slow decline that continued until the spring of 2008, when the slump became a nosedive—unleashing the subprime mortgage crisis. The “bubble” of unsupported high prices had burst.

There was more glad tidings in last week’s news, as well. U.S. home builder confidence levels hit its highest mark in “nearly a decade” (WSJ). A rise in demand for apartment housing caused a jump of 9.8% in housing starts.

But the biggest news was the existing-home price rise, reported as having “rocketed” 35% since 2011, “benefiting current homeowners by giving them an opportunity to trade up to better homes or sell and cash out.” That’s the kind of spur that can stimulate the entire housing market.

With one economist (Andrew Hunter of Capital Economics) quoted as saying “the housing recovery has shifted into a higher gear,” it wasn’t surprising that other analysts were in agreement. “Don’t Laugh” read one headline from international observer Quartz.com; “the U.S. housing market is the best story in the global economy right now.” Reuters agreed about the implications. Their headline: “Strong U.S. housing data boosts dollar.”

Greater Cincinnati residents don’t have to be global investors to take advantage of this summer’s home values. A simple call to my office is all it takes to get things started!

Mortgage Rates Projected to Rise Sooner Rather than Later  

Now that we are deep into July, with summer in full swing, there might be vague thoughts running through your mind about some potential real estate moves—but certainly not until the fall. Right now all most of us are thinking about is whether another chilled glass of summer-something-or-other is in order. Mortgage rates and what the folks in Washington might be doing to affect them are not exactly what occupies an idyllic July afternoon.
         But if you’ve been paying attention to any newscasts long enough to reach the dull-as-dishwater economic stories they throw in toward the end of the broadcasts, you may also have an inkling that conditions are about to change. And the evidence does suggest that mortgage rates face a likely increase come fall. If your vague suspicion does come to pass, and if you’re among those considering buying or selling a home this year, now should be the time to stop “thinking” and start “doing”.
          Exhibit A for that proposition comes from one Michael C. Fratantoni, who happens to be the Chief Economist of the Mortgage Bankers Association (MBA). When he recently spoke at the National Association of REALTORS^® office in Washington, he made no bones about it: mortgage rates will continue upwards, with a first significant Fed hike likely in September. September! The 30-year fixed mortgage, which we all know has lingered at historic lows—below 4%—for several years, is likely to hit 4.4% by the end of 2015 , then move beyond 5% next year.
         It’s enough to stifle any thoughts about that frosty beverage.
         The good news for homeowners planning to list is that Fratantoni doesn’t believe any of these factors will keep the nations’ buyers away. After a pretty lackluster 2014 performance, the MBA forecasts a 14% year-over-year increase in purchase-money mortgage originations in 2015—and nearly 9% in 2016.   Nationwide, incomes are also expected to rise, and with new household formations on the rise, the national real estate market looks to remain in fairly good balance.
         While it seems there’s no instantaneous need to drop all your summertime activities to rush your home onto the market, with mortgage rates expected to rise sooner rather than later, it’s certainly worth making it a priority to give me a call this week.  After that, there will definitely be ample time to finish enjoying that delightful chilled summer beverage.

4 Foolproof Steps to Increasing the Value of Your Home

 As soon as you decide that you will be putting your home up for sale—whether soon or at some point in the foreseeable future—it’s also time to get strategic about growing your property's value—starting with a generous dollop of objectivity.

The difficulty stems from a truth about how everybody perceives much of their property’s value. We escape from hurly-burly of daily living by retreating to the comfortable confines of our home—our place. A good part of its value to us and to our family is its sheer familiarity—the “hominess” that makes it our personal haven. But some of the very things that make it so comfortable to us will be off-putting to outsiders—and they are the prospective buyers.

Our great leather easy chair (the dark brown one that’s gotten a few shades lighter where we sit, and a little off-color where the spills happened) may look a bit peaked to the untrained eye, but it’s been that way for years: who cares? The back door needs to be bolted to stay shut…we do that without even thinking about it—hardly an issue! The sofa may sag, but it sags exactly right (for us)! The bathroom window that’s sort of stuck (okay, maybe it’s painted shut)…etc. etc. etc.

Professionals are of one voice about the real value you add to a property when you go to the trouble of systematically depersonalizing it. It helps to approach doing that seriously and deliberately—to tackle it in an organized manner. There are any number of ways to go about that, but here is one way that will pay off:

Step 1

      Make a list... Review your home from top to bottom. Identify every nit-picky detail in your home that requires repair or renovation. Prioritize your list of repairs or renovations from the easiest (defined as least expensive/time consuming) to the most difficult (defined as most expensive/time consuming). Memorialize the list of repairs/renovations in writing and assign realistic completion dates for each item on the list. For "big ticket" repairs or renovations, get an opinion from a full-time real estate professional on whether the repair/renovation will, in fact, improve the market value of your home before you incur any expense.

Step 2

After a decent interval, sit down with the list and re-classify each item into an Easy Self-Fix List and a Professional-Attention-Needed List.

Step 3
      Get bids from the appropriate professional tradespeople, calculate which fit your budget, then schedule the work.

Step 4
      Get started on your own endeavors to address the Easy Self-Fix List. You’ll be able to organize your own efforts to finish up about two weeks after the last of the tradespeople are scheduled to finish their projects (a two week grace period is realistic: you are aiming to finish everything about the same time).

Following these four steps will put you well on your way to increasing the value of your home. And at any point in the process—from before Step 1 to the satisfying moment that closes Step 4—give me a call to discuss how to convert all that increased value into a profitable home sale!

 “Credit Score Whack-a-Mole” for Mortgage Applicants

You may have wondered why there are credit repair companies out there, since the credit reporting agencies have to allow any consumer to dispute incorrect line items on their own. The big Credit Reporting Agencies (“CRAs”) even have online systems for challenging erroneous information. The Agency must act speedily to investigate and correct any false information. Soooo, why pay someone else to just fill out their form?

The answer seems to be the same one that makes practitioners in the legal profession permanently in demand: it’s in the fine print. And in this case, it could be that some of that fine print is written in invisible ink.

As you can well imagine, speed is vital when a would-be mortgage applicant finds a credit score that’s lower than expected. The mortgage companies will decide whether you qualify (and how much interest to charge) based largely on that credit score. The actual details about how speedily the CRA must act are all contained in the fine print located in the FDIC’s Consumer Protection regulations, “Procedure in case of disputed accuracy” (6500, § 611). Once you notify the CRA, they have to investigate the validity of your claim and (without charging you a dime) determine within 30 days whether the item is accurate. More fine print describe further protections you have—

PARAGRAPH 2:  The CRA has but 5 days to notify the company or person who provided the information about your challenge.

PARAGRAPH 6: The CRA has to provide you the results of their investigation in writing, and, if you’ve asked for it, describe the steps they took to arrive at their decision.

PARAGRAPH 7: If you didn’t know that you had the right to receive the above description, they must furnish it within 15 days after you later request it.

Those sound like pretty solid protections—vitally important, since the CRA can’t just sweep your dispute under the rug, stall, or ignore you altogether. After all, they have to detail in writing how strenuously they worked to protect you! Right?

Except for one problem, which is in PARAGRAPH 8. If the CRA simply drops the disputed item from your current report within the first 3 days, that’s officially considered an expedited dispute resolution. Since the item has been dropped, that might seem to be a solid win. But PARAGRAPH 8 says that if the CRA does that, it no longer has to do anything demanded in Paragraphs 2,6, and 7! It’s as if those protections were written in invisible ink…so that next month, if the company or person just reports the same thing, voila! your credit report might once again go back to Square One. The CRA is supposed to notify you 5 days in advance; but let’s face it, the phrase ‘Catch-22’ comes to mind…or ‘Credit Score Whack-a-Mole’…

What can you do, short of hiring repair agency experts to fix your credit score? Most commentators are in agreement: just stay away from the online dispute forms. Send a registered letter with your dispute, because it usually takes the CRA longer than three days to act on it, so they can’t skip the protections.

And while you’re waiting, why not give me a call? We can start scouting for your new  home!

Mortgage Payoff Loses Luster

Last week, The Wall Street Journal ran an article about personal finances that greater Cincinnati mortgage payers who are at or near retirement age should find thought-provoking. It centered on the idea that today’s retirees are often making a decision that differs from what past generations have chosen.

The basis is twofold. First, it’s undeniable that the 60- or 65-year-olds of today rightly expect a future that’s likely to stretch one or more decades longer than was the case for their grandparents. Improved health care and health awareness have combined to extend life expectancies considerably. The WSJ didn’t mention it, but some quick research reveals that while a baby boomer’s parents (assuming they were born in the 1920s) had a longevity expectation at birth of only about 55 years, the CDC says that today’s average 65-year-old male can expect to live another 18 years—with ladies even out-surviving them by another 2½ years.

Such a radical advance combines with a second development—today’s low mortgage interest rates—to create a shift in thinking by many as they hit retirement age. Experts believe that previous generations tended to feel “they were in the last inning” of life, and thus needed to pick a safe path regarding their residences. Paying off their home’s mortgage was given very high priority—one that was almost universally unquestioned. Home ownership unencumbered by a mortgage was taken to be a sound part of a worry-free old age.

But today’s local retirees are significantly less defensive in their thinking. According to The Journal, “Maybe their parents paid off the house before retiring, but many baby boomers say it makes more sense to carry a mortgage.” Instead of surrendering their cash or investments, the 21^st Century trend is for mature Americans to take advantage of today’s low interest rates. The long time run-up in the stock market has also made the choice that much more appealing.

Local retirees may also be departing from the way previous generations behaved. A Merrill Lynch/Age Wave study found that 30% of relocating retirees were moving to larger homes! And let’s face it: the whole notion of retiring is undergoing a transformation as more and more of the 60+ set realize they don’t want (or can’t afford) to quit working altogether. With so many good years before them, many are embarking on new careers—often elatedly following pursuits they’d “never had time for.”

With mortgage rates continuing to roost down in the bargain basement, today’s seniors aren’t alone in recognizing that 2015 represents a rare home buying opportunity. If you are coming to the same conclusion, I hope you will give me a call to chat about buying or selling a home.   

Buying a Home in the Right Homeowners Association

     It does seem that whenever a story about some faraway homeowners association finds its way into greater Cincinnati newspapers, nearly always it’s because something has gone awry. Either there’s an ongoing dispute about a flag display (“Indiana Couple Violate Rules for Flying U.S. Flag”), a fencing disagreement (“Border Feud is Childish and Dangerous”), or something else to catch readers’ eyes. The pettier, the better (“North Carolina Man in Dispute over Pansies Planted in Common Area”). Why does this hit the local news? Let’s face it: it is sort of fun to read about!

     The downside is that when those instances are all we hear about, it can lead local buyers to believe they should stay away from properties with HOAs when they are buying a home. But the fact is, town homeowners associations exist to protect the common interests of owners and residents. Homeowners associations can and do offer many benefits. The key is understanding what they are, what the costs are—then choosing the right association.

Know the Rules

     The first step in evaluating any local homeowners association is to thoroughly examine a current copy of its rules. When you realize that it’s natural to focus on the individual property instead of the community, it’s more understandable why many prospective buyers pay too little attention to this step. Later, they may find themselves in violation of rules they should have noted before. Those stories about flags are typical: usually the problem was not with the flag, but with rules about flagpoles. Small details can become big problems when the homeowners association ‘covenants, conditions and restrictions’ remain unread in a kitchen drawer.

Comparing Costs and Amenities

     In addition to the rules of a contending local homeowners association, there is the matter of its fee structure. Older homeowners associations are often (not always) less expensive than newer HOAs. Yet price is not the whole picture. Especially when evaluating two or more associations, it’s time to sharpen a pencil and compare what the fees cover. One association may include lawn maintenance, while another leaves that as your responsibility…and there may be value for the community (and your property’s resale value) in guaranteeing proper maintenance by everyone. One HOA may have a pool, tennis courts and other amenities, while another may only offer a community room. Newer greater Cincinnati homeowner associations are tending to offer more features, but not always.   
    Homeowners associations offer a sense of community along with amenities and other benefits…but for some, the cost in individuality weighs against it. When I’m invited to be your real estate representative, I help you ask the right questions—the ones that will guide you to a new home that’s the right fit for your family. I hope you’ll give me a call!

Tips for Making Tax Season Pain Free

Filing electronically can be an effective and headache-free means of getting your return to the government on time. But it’s not foolproof, as 200,000 customers found last year after a database problem the evening of the tax deadline caused their returns to be delayed.

How can you make sure your return isn’t affected by potential technical delays? The answer is simple: File early. If you submit your return with a few weeks to spare, you ensure that any technical glitches will be worked out well before the tax deadline. If you can’t finish your return on time, make sure you file Form 4868, which gives you a six-month extension on the deadline.

Another tip for avoiding delays is to avoid making the following top ten common returns errors:

1. Not signing and dating the return

2. Providing an incorrect or incomplete social security number

3. Calculating errors

4. Deduction errors

5. Reading tax tables incorrectly

6. Not itemizing

7. Sloppy tax return submission (be sure to attach all W-2s, as well as forms & schedules)

8. Not keeping records of your return

9. Failure to claim credits (energy credit, earned income credit) or calculating them incorrectly

10. Math errors (according to the IRS, a math error is any incorrect number on the return regardless of calculation

Consider these 3 College Dorm Room Alternatives

For many parents of high school seniors, these are hold-your-breath days—the time of year when college acceptance letters begin showing up in their mailboxes. If all goes well, after settling on a school, next comes tackling the array of decisions that follow. Chief among them: where he or she will live. Many parents tend to take the common course, assuming that a college dorm is automatically the best answer—but a college’s room-and-board plan is actually only one of the possibilities. In fact, it may not be the best financial, social or developmental choice for parent or student. Renting a house can be an intriguing alternative. Here are three of the reasons why some parents decide a home rental makes more sense:

1. Cost  

Sharing a home rental is often significantly less expensive than renting an apartment—or even a dorm room. Prices vary, but it’s more than possible to end up paying as much as $4,500 per semester for student housing. If your student lives on campus during the summer, fall and spring terms, that would create a $13,500 bill for the year’s housing (the equivalent of paying more than $1,000 in rent per month). Considering that most dorm rooms are tiny, that translates into a much higher cost per square foot than does a shared home rental.

Renting even a one-bedroom home near campus can give your child more space and quiet time to study without interference from fire alarm-pulling pranksters or noisy roommates. Every student is different, and having a place to escape the hustle and bustle of campus life can provide some kids with the extra focus they’ll need for success.

2. Safety

When students live in crowded dorms, many parents worry that they are more likely to catch colds or other communicable diseases. Being packed into a dorm with hundreds of people who may or may not behave responsibly is a dire way to view dorm life, but that is some parents’ view. When their child lives on his or her own or teams with a select group of roommates, some parents breathe easier. 

3. Responsibility

With a home rental, any student will learn more about responsible adulthood than when campus authorities assume parental-like responsibility for day-to-day living. Students who are on their own may be wholly or partially enrolled in school cafeteria programs, or may learn to shop for and prepare their own meals. Household and maintenance chores will be theirs to handle, rather than being the province of college employees. In that way, a college home rental can serve almost as a youngster's "starter home." They will graduate from college with a rental history, self-sufficiency skills, and home stewardship experience that will prepare him or her to better care for their own home later in life.

Of course, it’s not universally the best answer to the student housing problem: every institution and child combination are different, and different youngsters respond to independence and responsibility in differing ways. But if you haven’t thought about the possibility, it could be worth looking into. If I can help with a referral to a rental agency—or if you’d like to consider buying anywhere in the United States—do give me a call at 513-659-2284!

What’s Your Home’s Emotional IQ?

     When it comes to selling a home in the Greater Cincinnati housing market, the first attributes that will bring in prospective buyers will be found in your listing description: size, location, and all the details that either match prospects’ wish lists (or don’t). Price is in there, too. Next comes curb appeal, which can turn on or turn off prospective buyers. Although it is often the second “at bat” you get when you are selling your home, it’s not usually decisive. The third attribute can be just that—a bunch of factors that can hook your ultimate buyers.
     Call it your home’s “emotional IQ.”  Everything else is important, but emotion plays a powerful role in selling your home. That’s because home is, well, home—where people hang their hats, raise their kids, and spend their precious downtime. When potential buyers come to your house, they may think they are checking out four walls and a roof, but they are much more likely to be seeking a place that tugs at their emotions.
     All very well and good, but how do you up your home’s emotional IQ (and snag the sale in the process)? Look objectively at your home, then think about the emotional plays that will get them where it count—through their senses. Give your home a quick sensory scan, looking for things that cue all five:
     Sight. Is your home clean? Is it decorated and staged (but not so much that potential buyers can’t imagine themselves in it)? Make sure your home is as spotless as possible, and warm but not personal. When room entrances are arranged to feel open, they look welcoming: a strong way to please the eye.
     Sound. Does your home sound like a home? There’s nothing less emotionally pleasing than doing a walkthrough of a perfectly empty shell of a house. Attractive floor coverings (rugs and throws) can eliminate the unbroken echo of footsteps—and make your home feel more inviting; less clinical. And don’t forget a drop or two of 3-in-1 oil or WD40 for squeaking doors!
     Smell. The nose is a powerful emotive factor. Aromas can evoke nostalgia, bringing on the feeling of well-being that comes with familiarity—but it can also sound alarm bells. Make sure the air doesn’t carry strong chemical or perfume smells. Better to throw a few cookies into the oven before walkthroughs arrive. It makes it easy for potential buyers to imagine themselves living, working, eating, and enjoying time in your home.
     Touch. Look for surfaces potential buyers may touch, and make them clean and inviting. Importantly, door latches and light switches should feel sound and serviceable.
     Taste. No—nobody can really taste a home, but selling your house may come down to leaving your personal taste at the door. It’s risky to forget to focus on the most tasteful place of all—the kitchen. The old real estate agent trope that gorgeous kitchens sell houses is more true than not, so if yours is hopeless, you may judicious to spend your upgrade dollars in a modern, open kitchen space.
     How does your home’s emotional IQ add up? If you’re lacking in just one area, congratulations. You know what to fix, and a few subtle tweaks will help a lot. If you’re lacking in many areas, give me a call! I may be able to recommend some quick fixes, or point to a home staging professional. Don’t forget: Whether buying or selling your house, things can get emotional. Take a deep breath, remember the real purpose of a home, and be ready to move!