My assistant and I just helped a couple moving from Dallas Texas to Cincinnati. She (the new Doctor) begins her internship at Children’s Hospital this June 1st. They had exactly 3 days to find the home of their dreams and head back to Texas.

It’s hilarious to explain to out-of-towners that they flew into the Greater Cincinnati (Northern KY) International Airport and landed in Kentucky. Then to get to the Mt Washington/Anderson Twp area you need to cross the Ohio River from Covington to Cincinnati, head East on Fort Washington Way and take 471 across the Ohio River a second time through Newport, Ky and up to Southgate, Ky to I-275 and back across the Ohio River a third time to Ohio once again. It is the absolute shortest route. 

It was also interesting how they absolutely fell in love with the Cincinnati Skyline as we drove through the cut in the hill on I-75 from Covington Ky heading towards Ohio. Then I really put Cincinnati to the test. I asked them if they had heard about Cincinnati Chili…they said “Yes, we have heard it was different”. So we went to Skyline Chili for lunch and I was a hero. They really loved it. So now we have new converts to Cincinnati Chili.

This couple wanted a move-in condition home, with at least 2 baths and a two car garage. It needed to be within 20 minutes of Children’s Hospital and between $140,000 - $160,000. We found a few in Delhi, Bridgetown, Deer Park, Reading, Mt Washington & Anderson Twp. In Northern Kentucky we found a few in Erlanger, Villa Hills and Ft Thomas.

Their first choice was a home in Delhi. Well, the market is not as bad as the media is telling us because we were into a 3-way multiple offer. We went from a Skyline Three-way to a this and lost. Yep, the sellers took one of the other offers and rejected ours. It is a good thing we had a very close second choice. A home in Mt Washington. We immediately got that offer to these sellers on Sunday morning and got it accepted before they flew out of CVG for Texas.

So the moral of this story is …you cannot believe everything you read in the papers about how BAD this market is. Buyers are buying and sellers are selling. This is a good thing. So if you are actively in the market to buy a home don’t think you have plenty of time to make your offers and think you can low ball the seller and expect to get it. That isn’t so in the greater Cincinnati area. If the home shows well and is priced well, someone will buy it. Will that be You? You need to act on it and act reasonable. Don’t be silly or you will loose.

God Bless you and pray for our Troops

This Thursday the Bankers Club is playing host to the Jewish Federation Business Power Hour keynoted by David Ginsburg, President and CEO of Downtown Cincinnati Inc. David will be sharing some of his thoughts on how far Downtown has come and the strategies for continued growth.

The event begins at 6:00 PM and I will introduce David at 6:30 pm, when he will share his comments with the group. Tickets are available by contacting Lindsey Kreindler at 513-985-1522 for further details. The event costs $10/person in advance, $15/at the door.

Downtown Cincinnati Inc. (DCI) is a non-profit business organization with a mission to build a dynamic metropolitan center valued as the heart of the region. DCI provides leadership and advocacy for important issues that ensure long-term downtown vitality. As the Cincinnati Real Estate market continues to expand downtown, DCI will certainly play an important role as a strong partner in improving the city.

It takes 18.5 years for the principal portion of your mortgage to outweigh the interest portion.

For some perspective: If you took a new, 30-year fixed mortgage when the Reds last won the World Series, you’d still be to the left of that arrow for another 11 months.

A Senate bill in Washington aimed at helping Americans through the sub prime mortgage crisis may include funding of up to $4 billion dollars to support a temporary $7,000 tax credit for people buying new homes or properties in foreclosure.

Ohio Senators Sherod Brown and Sen. George Voinovich each have their own questions and concerns about the bill and its impacts on both Ohio residents and lending institutions reports the Dayton Daily News.

If you could claim a $7,000 tax credit for buying a foreclosed house would you? Is it enough to get you to look exclusively at foreclosed properties? Our thoughts are that after the credit crisis and the lending practices get resolved these proactive measures will bolster the Cincinnati real estate market by removing some of the excess inventory.

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There is a new trend in real estate marketing in Ohio in the form of the Cleveland foreclosure bus tour. A real estate agent books a tour bus and charges $15 per person for home buyers to go to three different suburbs with homes that have been foreclosed.

In Phoenix, AZ, has the Phoenix foreclosure Bus Tours that brings together real estate agents, mortgage brokers, and rehab specialists with potential home buyers and investors to try to get the foreclosed homes moved off the market .

These tours may help move foreclosed homes off of the market faster. The real question is, are these tours taking potential buyers away from the rest of the inventory in the city? In price-stable Cincinnati there are specific areas with more foreclosures, and the agent-listed inventory in those areas may suffer more from activities like this in the short term, but getting foreclosed homes occupied quickly is good for the community in the long term..

Did you ever reply to an email in a hurry, forget to use spell check or re-read it to proof before hitting SEND?

Then you get your CC…(carbon copy) and are embarrassed at what you sent. Maybe you were angry at the email you received and thought “Well, I’m going to throw in my two cents worth” only later you feel what you said wasn’t even worth two cents…now that you had a chance to read it.

But once you hit the SEND BUTTON…it’s too late, you cannot take it back.

I experienced a unique situation the other day. I received an email that really looked like it was from my bank. It had the official logo, footer disclosures and everything. This email didn’t even go to my spam folder…and that was very unusual. Most all my email unless extremely legitimate goes into my quarantine.

This email said  Account Notification   -We were unable to verify your account information during our regular database verification process. This might be due to one or more of the following reasons:…..
Then it asked me for my current user name and password, My social security number, my check card and pin number and three of my security questions and answers.

I use Roboform password manager and form filler on my computer. This is a great product. I highly recommend it to anyone that has more than two or three passwords to remember. Well, I hit Roboform and it was about ready to fill in all the blanks this email asked for. Then I thought about it a little more. I wasn’t even logged into my personal banking highly secure website.

I called my bank and they verified that this email did not originate from them and they asked me to forward it to their ID theft division. Whew…that was a real close call. I could have lost everything in my bank account had I not had a second thought about what I was doing. I am so grateful God was watching over me that day as he always does. But especially that day as rushed as I usually am to get everything done on time. This is one way people experience Identity Theft. Please be sure to verify anything that asks for your confidential information.

So…I am extra careful to read everything I reply to and make sure that I use Roboform wisely.

God bless you and pray for our Troops. 

FHA stands for Federal Housing Administration, a group created in the National Housing Act of 1934 and merged into the U.S. Department of Housing and Urban Development (HUD) in 1968.

Mortgages backed by FHA are often called “FHA loans” even though it’s somewhat of a misnomer.  A more appropriate name would be “FHA-insured” loans because that better describes the FHA’s function. 

The FHA is not a lender.  The FHA is an insurer of loans and because of the FHA’s guarantee, mortgage lenders are willing to make loans to Ohioans on which they would otherwise pass.

Mortgage rates on an FHA-insured loans usually track about 0.250% higher than on comparable conforming loan, but because of new risk-based, mortgage rate adjustments from Fannie Mae and Freddie Mac, FHA loans suddenly look super-cheap.

Borrowers with sub-680 credit scores and a 10 percent downpayment, for example, are getting mortgage rates close to 1 percent lower than on comparable conforming loans.

The FHA also offers a few attractive features:

• 3 percent downpayment allowable
• Very liberal “seller contribution” policies to defray closing costs
• 30-year fixed rate mortgages

FHA loans aren’t for everyone and not every mortgage lender is approved to offer FHA-insured products. 

Home buyers with credit scores under 720 should talk with their loan officer to see if FHA loans are a responsible fit for their long- and short-term financial goals.

Source
FHA Loan
Wikipedia, April 1, 2008
http://en.wikipedia.org/wiki/FHA_loan

Here is a checklist of items you should consider including tips on hiring an inspector and ensuring that the property is prepared for a complete inspection.

1. Does your inspector’s credentials meet state licensing requirements, does their company require ongoing training to be current with today’s technology, and can you be provided with 3 references?
2. Does your inspector have Error and Omission Insurance and a guarantee that stays in effect after the inspection has been conducted?
3. Does your inspector belong to industry organizations like the American Society of Home Inspectors (ASHI), the National Society of Professional Engineers, and the National Academy of Building Inspection Engineers?
4. Has your real estate agent made sure that the utilities are all turned on at the property including electric, gas, water, and water heater so that they can be checked during the inspection?

A good real estate agent will use the information in the inspection report to guide you in your purchasing choices.

CNN released an article listing the Top 100 Cities to Live and Launch and Blue Ash, Ohio ranked #62.

With a population of 11,942 people, startups can benefit from programs such as Ohio’s Job Creation Tax Credit, which goes to companies that create 25 new full-time jobs paying at least 150% of the minimum wage.

The population of Blue Ash more than quadruples during the workday since 35% of Blue Ash is residential, 35% business, and 30% is public space.

The city of Blue Ash is home to unique businesses such as Marx Bagels, Benchmark, Cappels, and Servatiis Pastry Shop. Blue Ash has quiet residential neighborhoods with easy access to shopping, and highways. The Town Square hosts concerts and other events during the warmer months, and is decorated over the holiday season.

The Blue Ash Recreation center has year round activities for people of all ages including swimming facilities and an indoor exercise center for a small fee for residents. There are plenty of nature trails, a private airport, and public golf facilities as well and residents attend Sycamore Community Schools.

Spring is here and summer is just around the corner.

In Cincinnati, it means we will be shutting down the furnaces and getting the AC units ready to cool. With energy prices on the rise we are all looking to be more efficient in our homes and one way is to only heat and cool only the rooms you use.

Traditional zoning heats/cools the various floors in your home so that your basement can be a different temperature than your main living level. New technology now allows you to zone individual rooms using pneumatic damper and multiple thermostats.

Each room can be set at different temperatures for different points in the day, reducing the work load of your AC and furnace. A Cincinnati heating and cooling company can give you a quote and start saving money on your energy bills.

I just read a very important article from Reuters explaining to current renters why it is an opportune time to buy their first house. Owning your own home is one of the most important investments you can make.

The article address the fact that the tumult in the market can be a bit disconcerting to new buyer, but the fact is that first time home buyers have the pick of the litter with a healthy inventory, low rates, and motivated sellers.

In Cincinnati all of these factors are creating a prime situation for qualified first time home buyers.

Take advantage of the internet based real estate search resources, find a qualified mortgage broker, and make sure you have a seasoned and knowledgeable Cincinnati agent, like those of us that write here. Consider a number of options and think a few years down the road to make your investment in your home a success.

I recently received a letter in the mail from a mortgage lender in the Cincinnati area that said:

Have You Heard About The Special Mortgage Program That Has A Fixed Interest Rate and Could Lower Your Payments By Hundreds of Dollars Per Month?

The problem I have with this type of advertising is that it’s usually not in the best interest of the consumer. When you really think about it, what are the only ways to lower your monthly payment?

1. Increase the number of years on the loan,
2. The fixed rate could be a “temporary” rate, later to be increased over time
3. Put down a larger down payment

Lenders are trying to come up with ways to get consumers to re-finance their mortgages or to take out 2nd mortgages or home equity loans, etc. They’re in the business of lending money and with real estate sales down this year, they need to find other sources of increasing their profits.

So how do you know if any advertised TV ad, radio commercial or direct mail piece about getting a new mortgage is really something you should consider?

Well, before doing anything else, call a trusted mortgage professional. They can review your situation and give you an un-biased opinion on what your best options are. 

There are too many people who fall victim to the common “bait & switch” scams. Lenders and telemarketers, who call you on the phone, are often “FAST” talkers, who make everything sound so easy to do and such a great deal. They may even say that you can sign up for their ‘great’ program on-line and never meet anyone.

WRONG!

You always need to have someone to talk to and go over all of your options with you. The “salesperson” may be trying to “sell” you a mortgage program that is terrible for you, but great for them. There may be a lot of closing costs and junk fees associated with or built into the loan that you don’t know about until you sign the final papers.

If you’re thinking about re-financing your mortgage, it should be for one of the following reasons:

1. Converting your adjustable rate into a fixed rate mortgage
2. Converting your 30 yr loan to a 20 or 15 yr loan
3. Consolidating bills into your mortgage, (then cut up your credit card)
4. Qualifying for a lower fixed rate, because your credit score has gone up
5. Getting a lower interest rate with a no-closing cost loan (your payment goes down with no additional out of pocket expense to you)
6. Removing Private Mortgage Insurance from your monthly payment

Don’t get taken advantage of by some “slick” salesperson.

The Office of Federal Housing Enterprise Oversight announced Wednesday that it has cut the government-sponsored mortgage investors’ surplus capital requirement to 20 percent from 30 percent for Fannie Mae and Freddie Mac.

The OFHEO estimates that this reduction, in combination with the release of portfolio caps announced last month, should:

1. Provide up to $200 billion of immediate liquidity to the mortgage-backed securities market
2. Allow Fannie Mae and Freddie Mac to purchase or guarantee about $2 trillion in mortgages this year

This could be significant to our local real estate market.

Credit is harder to come by because of more stringent lending practices in the wake of the sub-prime mortgage melt down.  Fannie and Freddie will have more liquid capital to purchase mortgages, hopefully resulting in more credit being offered to local home buyers.

All of these changes are an effort to add liquidity to the mortgage market while maintaining both investor and home buyer confidence in the system. Both agencies have seen significant changes in the last few months including the clearance to purchase larger loans (jumbo) up to $729,250 in some areas.

These adjustments are designed to help stimulate home sales and keep the economy moving forward

We have seen an extreme amount of rain throughout the Greater Cincinnati area over the last couple of days.  Many home owners that have never seen water intrusion into the home before are now dealing with wet basements or other rain related issues.

 When listing a home for sale, every home owner is required to fill out a State of Ohio Residential Property Disclosure form.  Section D of this form deals with Water Intrusion into the home.  Many current home sellers who previously had not experienced water intrusion may need to update their property disclosure form.  Home buyers should be sure to ask their agent to inquire if any water was found in the home during this week.

Well, we all know that real estate agents aren’t exactly the most trusted of professionals out there. According to a Harris Interactive national poll, the three least “completely trusted” professions are:

1. Insurance Agents
2. Real Estate Agents
3. Stock Brokers

Progress! At least real estate agents aren’t at the bottom of the barrel. 

There are a lot of bad real estate agents out there, we all know it. And that’s all the more reason to talk to an agent before you start working with him or her.

• Is he or she hearing you or listening to you?
• Does your real estate agent seem interested in the ‘why’ behind what you needs?
• Is their marketing about them or about you?
• Are they telling you what you want to hear or what you need to hear?

What are the top three most trusted professions?  In order: Doctors, Dentists, and Nurses.