Sellers

Thinking of Selling your home? This is a great place to start learning about the ins and outs from the Realtor’s perspective, The Buyer’s perspective and The Best In Class Sellers’ point of view.  Most Sellers come to us through referrals or were themselves past clients. The rest have landed here and appreciated our straight talk, ability to be creative with their home sale marketing, and our outstanding web presence.

Sellers should sign up for our Delicious Property Organizer which will keep you abreast of the competition in your area. Create a Custom Search with homes similar to your and know when they hit the market and when they reduce their price.  And, since most Sellers are also buyers, don’t forget to look over on that page too.

The Return of Third Thursday Open Houses and why it works in Bexley

A few years back, some of the Realtor associations inside I-270 had an idea  about Open Houses.  Holding an open house on a day other than Sunday wasn’t a new idea but all agents, working together across brokerages to promote an additional opportunity to showcase listings was new. It wasn’t an idea that orginated from the local Board of Realtors, but in the field.

Fast forward to a week from tomorrow, the third Thursday in March, and the only open houses will be in one zip code -43209- Bexley, Berwick and Eastmoor.  In fact, the last I saw, there were 17 homes (listed below but still time for others) in Bexley and Eastmoor open.

It didn’t stick in Clintonville, it didn’t stick in the Short North or in German Village or Upper Arlington. Why has the idea not only survived but thrived in the Bexley, Berwick and Eastmoor area?

• It’s a smallish area, approximately 9.3 square miles.
• Between Broad Street, Main Street, Livingston Avenue and James Road, a large amount of cars pass by the Open House signs every month.
• Affiliates of the local real estate association help to underwrite a full page ad in the Bexley News the week prior which details the homes to be held open.
• In Bexley, a relatively small number of agents have many of the active listings at any one time and they urge the homeowners to participate.
• I believe that the last informal tally I heard indicated that 12 homes sold in 2009 where the buyer first saw the home on a Thursday in Bexley, Berwick or Eastmoor. Success begets more chances.

From last count, these are some of the homes that will be Open Thursday March 18 from aprox. 5-7 PM.

Property Price Beds/Baths Bexley: 2500 E. Livingston Ave. $157,900.00 3 / 1 2611 Stanbery Rd. $173,900.00 4 / 1.5 934 Euclaire Ave. $189,900.00 4 / 2 139 N. Stanwood Rd. $197,000.00 3 / 1.5 232 N. Stanwood Rd. $310,000.00 3 / 2.5 320 N. Cassady Rd. $320,000.00 5 / 3.5 243 S. Cassingham Rd. $339,000.00 3 / 1.5 2825 Elm Ave. $364,900.00 4 / 2.5 2551 E. Broad St. $369,000.00 4 / 2.5 2394 Sherwood Rd. $379,900.00 5 / 2.5 366 N. Stanberry Rd. $397,000.00 345 Northview Dr. $429,900.00 4 / 2.5 2640 E. Broad St. $482,000.00 3 / 3.5+.5 2722 Fair Ave. $499,000.00 4 / 3 2694 Bryden Rd. $515,000.00 5 / 3.5 2491 Fair Ave. $575,000.00 5 / 4.5 2456 Fair Ave. $650,000.00 5 / 3.5 2465 E. Broad St. $789,000.00 4 / 2.5 Eastmoor: 116 N. Broadleigh Rd. $119,000.00 4 / 2

How to Turn your $8,000 Columbus Home Buyer tax credit into $9,000….. or more

If there is anyone out there in Central Ohio still considering the purchase of their first home, now is the time. I am not a cheerleader type, especially for the same sort of party line that all real estate agents are eschewing right now.

That said, the truth is, there’s never been a better time to buy your first home. Interest rates are at historically low levels and thought to be increasing soon. Housing stock, even at this time of year, is plentitful and growing and less expensive than it may have been a couple years ago.

And, oh yeah, there is an $8,000 tax credit for first time Buyers and a $6,500 tax credit for Sellers. There’s never been a better time to buy your first home. Until now.

Delicious Real Estate is rebating cash back to all buyers.

• $1,000 to Buyers of homes $135,000 and over
• $2,000 to Buyers of homes $235,000 and over
• $3,000 to Buyers of homes $335,000 and over

Just like the tax credit, this offer only extends to any buyer who is in contract on a home by April 30, 2010.  Unlike the tax credit, this offer is not limited to first time buyers, rather it is open to any buyer.

*Buyers must be pre-approved by lender of choice.

*Homes must be in Franklin or contiguous Counties.

*The rebate will mentioned in the purchase contract for the home and listed on the settlement statement as required by state law.

*You must know the secret password which means you read to at least the middle of the post. The secret password is “Go Clippers!”

*Call, email or stop by for more information

Why am I doing this?

1. I’m driven to prove that a better buying and selling experience is possible for less.
2. I want to get the Delicious Real Estate name out in the world more than I have in the first year of the Firm’s existence.
3. I’m concerned about potential negative impacts on our local market of FHA changes and the end of the tax credit and think that the last 3-4 months of 2010 will be very slow.
4. I’m already considering the idea of rebating. It’s part of my client-centric philosophy.
5. The first quarter is typically a bit slower than the 2nd or 3rd quarter of the year.

Selling your Columbus Area Home? Do This!

>>improvement list for your for sale Columbus home <<

Your home is for sale. You want to make a good impression on would-be buyers and stand apart from the crowd. You want to convey as much meaningful information as possible without getting emotional and you want buyers to know that your house is better/more sound/more improved than the rest of the homes for sale in Columbus, Ohio.

Do this. Make a list of improvements you’ve done to your home since you’ve owned it. Put the big improvements at the top. Don’t be shy, put the associated price tag. Buyers want to buy your home for the least amount of money possible and when they see the money you’ve put into your home, they’re less likely to hold your list price against you. Better yet, they’re going to feel great about purchasing your home because they know when the roof was put on, when the air conditioning unit was installed, when you updated the electric lines to that portion of the house and they know you paid real money for it. Even if your cousing Larry did the improvements, you paid him money and you should document it.

You don’t have to have receipts, just a line item list like this one goes a long way to putting the buyer at ease. Especially if you haven’t been in your home long and especially if your asking more than the competition because, darn it, your home is better. Prove it.

By providing the actual costs you go a long way toward transparency and peace of mind.  I’ve seen lists like this go as far as to include things like light-switch plates which may be a little too detailed.

As a bonus for buyers, especially first time Columbus home buyers, the price list gives them a real world estimate to use when they’re looking at other homes that need these same improvements. They have no idea how much these things cost and now you’ve given them one.  In most cases, they’d rather buy the house with the improvements already done—especially for about the same price.

Have questions about selling your Columbus house or which Columbus Realtors go the extra mile? call me at 614-940-9100 or email me.

How To Dispute, Appeal or Contest Your Franklin County Real Estate Tax Increase

EDIT: 12/17/2009 Please see the end of this post for a clarification and correction of any inaccuracies from the Franklin County Auditor, Clarence Mingo.

If your home has been re-valued by Franklin County recently, you probably received a notice in the mail regarding the new property tax. Per the Ohio revised code, Franklin County appraisers review property after a sale and/or every three years or so.

If you receive a notice, you’re no doubt glum about having to pay more real estate taxes to Franklin County. When you realize that the tax increase is for the ENTIRE 2009 year retroactively and that the tax bill you get in December for the January 1- June 30 tax cycle will reflect the increase and be based on this new value, you’re downright hot under the collar. What to do? Where to turn?

First, stop and consider if the new value is reasonable.  After all, if Franklin County is saying your home has appreciated in value, that’s a good thing isn’t it? Isn’t that, in part, why you purchased a home – to build equity?

Not buying that? OK. Here is everything you should know about appealing your Franklin County Tax Increase:

• Everything you need to contest the tax increase is available from the Franklin County Board of Revision site, here.
• Make sure you fill out the forms accurately and completely because the Ohio Supreme Court says a complaint MUST be dismissed if it is not completely filled out.
• You will need to sign your appeal in front of a Notary Public.
• If the property

was purchased after January 1, 2009,you will need to include a copy of the closing statement (3 pages), the purchase contract, and the deed with the appeal form.

Appeals to your Franklin County tax increase must be filed between January 1 and March 31. You can call down to the Franklin County Board of Revision (The best phone number is 614-462-HOME (4663)) and ask what properties were used as comparables for the new value (remember that their appraisers don’t just pull the new tax value out of the air). These will tell you something about wether or not your increase has much viability for an appeal. For example, let’s say you live in Hilliard and the comps the County Appraiser used included both of your next door neighbors whose homes are exactly like yours. That’d be a small chance for appeal.

While you’re assembling any paperwork to take to your hearing, call me for the most recent comparables in your neighborhood and I’ll see what I can find that might help your case. I’ll also tell you if I think you just drop it and suck it up because your home may be worth even more and maybe you shouldn’t call attention to it right now.

There has been lots of talk this year about how far behind many Franklin County Offices are, especially in regard to filing deeds and especially in the case of filing deeds via sheriff sale. The Board of Revision, while not ready to hear your case today, isn’t too far behind in the overall scheme of things.

Consider that there were 6700 complaints filed regarding 2008 tax increases and that the Franklin County Board of Revision is a three member office and that they can hear about 32 cases per day. They’ve even added an extra panel so that cases can be heard simultaneously. Still, your absolute best case scenario is an April 2010 hearing on an appeal you file in January of next year (and, remember, you can’t file before that).

To answer a couple obvious questions…

• Yes, you have to pay your next or pending Franklin County Real Estate tax bill according to the new amount while you’re waiting to hear about an appeal date.
• If you have a hearing before the end of June and it turns out you’ve overpaid, you’ll likely have the overage applied to the 2nd half taxes.
• If you have a hearing after that (and let’s face it, most of you will) chances are the overage will be returned to you.

How long do you have, after the purchase of your home, before the real estate taxes will be increased to reflect the new purchase price? It depends on lots of things but you should plan on them being increased right away. In fact anyone considering a home purchase should estimate the new taxes based on the purchase price (HERE is a handy calculator that does just that) and feel comfortable with that number on top of your pricipal, interest and insurance each month.

You should realize that you were probably pre-approved for your mortgage based on the pre-purchase taxes and You should expect it to take somewhere between 3-12 months, sometimes longer, before you hear anything about a tax increase.  It’s not so much the county as the local Columbus School District where you bought your home that wants your tax dollars increased and they may, in the case of multi-family or commercial properties, file for an increases based on your purchase prices.

VERY IMPORTANT, PLEASE CONTINUE READING: Dear Joe, I have read with interest your post yesterday regarding the appeal of real estate taxes. The article does a fine job of outlining the thought process owner’s should follow when deciding whether or not to appeal. There are a few factual matters, though, which I would like to address:

• The appeal is filed against the valuation of the property, not the tax amount. There are two components to the calculation of tax, the tax rate and the value. Only the value may be appealed to the Board of Revision. The tax rate on the other hand is set by the voters and may not be challenged.

• The notices which were recently mailed were notices of the change in value, not tax amounts.

• It is not only the Columbus Schools which actively file complaints against values. Virtually all school districts participate in the Board of Revision one way or another. Still, very few school districts file complaints against owner-occupied residential values, limiting their filings to commercial, industrial or investment properties. Therefore your home buyers have little to fear from the school districts unless the home owner initiates a complaint requesting a reduction in appraised value greater than $50,000 (or $17,500 assessed value). The Board of Revision is required to notify school districts of decrease requests of such magnitude and the school district may then elect to become a party to the complaint.

• On an annual basis the Auditor examines only approximately 5 percent of residential sales, those which have significant differences between their selling price and the auditor’s value. These property values may be subject to adjustment either up or down if needed. All other sales are verified and utilized by the Auditor to establish values for all county properties in each three year adjustment cycle.

• The best phone number to give to clients is 614-462-HOME (4663). Our Public Information staff is highly trained to handle tax-payer inquiries. Thanks so much for your kind and supportive words regarding our processes and staff and our hats are off to you. Keep up the great work! Sincerely, Clarence E. Mingo II Franklin County Auditor

2010 National Real Estate Housing Outlook

A quick review of National Association of Realtors’ Chief Economist Lawrence Yun’s 2010 preview looks positive. I would caution it as maybe even being a little optimistic and would suggest a 12-15% uptick over 2009 first quarter sales here in Central Ohio. I think over the Holidays a lot of Columbus singles, couples and families will have long discussions about home buying and hit the new year resolved to buy a home in 2010. I think once the tax credits expire and interest rates start to creep up, the second half of 2010 will be slow here in and around Columbus.

As for the rest of the country, this is what Yun has to say….In all, 4.4 million Americans look to take advantage of the home buyer tax credit before it expires by the middle of next year. From the enactment in February of this year through October, NAR estimates 1.8 million households would have qualified to claim the first-time home buyer tax credit. Now with the tax credit deadline extended till the end of June 2010 (for closings, with contracts signed by the end of April, 2010) and also available to many move-up buyers, an additional 2.6 million families would likely claim the home buyer tax credit.

The expected boost to existing home sales by more than 20 percent in the first half of 2010 from comparable period one year before will sufficiently trim away inventory such that home values will begin to show increases by the middle of next year in many parts of the country. The median existing home price could rise by 2 to 4 percent in 2010. New home sales could jump by nearly 50 percent, though from very depressed levels to figures that would be less than half the pace as during the peak sales year in 2005.

One assumption underlying the home sales forecast is that the mortgage rates will continue to remain at near historically low around 5 percent and not more than 5.5 percent. Meanwhile, the unemployment rate is projected to stay high at slightly above 10 percent through the first half of next year, before steadily inching down. Another assumption is that the economy as measured by the GDP continues to expand at nearly 3 percent, thereby laying the foundation for eventual consistent net job gains sometime in the spring of next year.

There was indeed good news on the job front. In November, payroll jobs were reduced by only 11,000. Of course, job cuts are bad, but the momentum of fewer layoffs with each passing month is clearly positive news. Consider this: job cuts averaged 688,000 per month in the first quarter, 512,000 per month in the second quarter, 288,000 per month in the third quarter, and 111,000 in October. In the construction sector, the job loss in November was 27,000, but the pace of cuts has also been diminishing.

The average hours worked by an employee rose in November as well, implying more full-time hours over part-time. Moreover, employment information from households and not from established companies suggests a net job addition. A total of 227,000 jobs were added when based on household survey, thereby nudging the unemployment rate lower to 10.0 percent in November from 10.2 percent in the prior month. Usually, many start-up companies and consultancy jobs are not counted in the company survey data, which explains for the differences between household and company surveys on jobs. So as long as the job momentum moves for the better, the housing market forecast of 20 percent higher sales and stabilizing home values should hold up. An improving housing market and the very important development of home values and housing wealth stabilization will in turn better stimulate economic recovery.

Not all markets are equal, however. Detroit is hemorrhaging with 17 percent unemployment rate. The Washington D.C. area is buffered from so much government spending with the jobless rate at only 6 percent. Even if a bridge is built in Alaska, somehow jobs get created in D.C. Something right is being done in North Dakota with labor shortages and a state budget surplus. Bismark and Fargo have exceptionally low unemployment rates of only 3 percent.

On interest rates, the borrowing rate for a home purchase and refinance on a primary home has never been lower than it is now. The average rate on a 30-year fixed rate mortgage was 4.8 percent in early December. The rates will not move lower than this in 2010. All indications in fact point toward higher rates next year. The Federal Reserve could end the purchase of mortgage-backed securities (MBS) in March as currently scheduled, though my guess is that MBS purchases will continue for a bit further, though less aggressively. Even in the absence of the Fed’s MBS purchase, mortgage rates will not suddenly rise to alarming levels. At most, mortgage rates will rise to the high fives (5.6 to 5.8 percent). Given global financial market inter-linkages, we need to be mindful that the Australian central bank has already begun to raise its rates and Canada is looking to do the same very soon. The European central bank, though not planning on raising interest rates anytime soon, indicated it is looking to stop its quantitative easing policy and possibly move in reverse very soon. That means that, rather than the central bank buying government and private market bonds out of newly printed money, it plans to mop up excessive cash floating in the system to assure inflation does not suddenly pop out of the bottle. With these developments, the U.S. Federal Reserve will surely have to raise its fed funds rate sometime in the second half of 2010 and stop the purchase of private bonds, including MBSs. Otherwise, the dollar will lose its ground to other currencies and steadily cut into our standard of living here at home.

The very high federal budget deficits could also do us in. After an all-time high of $1.4 trillion in budget deficit in the fiscal year 2009, another trillion dollar deficit is on the card for 2010 and near trillion in 2011 and 2012. A big factor in lessening the deficit is how the economy grows. If the economy expands and leads to robust job creation, then the deficit will be lower than projected. If the economy hits many speed bumps along the way then the deficit will get quite ugly. Therefore, a way to get out of the deficit jam is to promote policies leading to economic growth. But unfortunately, the high deficit could also put focus on ways to raise more tax revenue by chipping away at mortgage interest deduction, property tax deduction, and capital gains tax exclusion on primary residence. This discussion could come alive in 2010 and if it does surface NAR will vigorously defend homeownership policies that have been the very foundation of stable middle-class based democracy, civic participation, and long-term middle class wealth accumulation. Any housing policy leading to unsuccessful homeownership (such as the ones associated with the recent housing bust and foreclosures) should be dropped. But policies that promote responsible and sustainable homeownership have incalculable societal benefits and must be defended. In addition, given that homeowners already pay nearly 90 percent of all federal income taxes, trying to extract more out of homeowners will in the end be counter-productive economically and politically.