Real Estate Information

by Jo-Anne LaBuda

I have recently returned from the annual Keller Williams "Family Reunion", which is the name given to the Keller Williams National Convention.  I have been to many other real estate conventions, but there is a definite difference in the feel of Keller Williams vs. others.  Family Reunion is a great opportunity to reconnect with the many Realtors I know and respect from all over the country and to help each other out with challenges we all face whether it be Texas, California, New York or Columbus, Ohio.

This year's classes and general sessions centered on the shift in the real estate market and general economy that we are experiencing.  How can we help people who need to sell their home because they find themselves facing foreclosure or are delinquent in their payments?   Also folks who want to downsize.  Seniors who are moving to one-level living.  The world doesn't "stop" because the economy sags.

I attended an 8 hour class which centered on bank-owned properties and all of
the new challenges they create.  Fortunately Central Ohio and the Columbus suburbs do not have the high foreclosure rates seen in other parts of Ohio and in Arizona, California and Florida.  Our prices didn't spike like they did in other areas which may have seemed unfortunate to us at the time but now is a good thing.  The higher the spike, the sharper the fall in home prices.  The class was intense but I learned how to help homeowners possibly avoid foreclosure or to help them through this difficult process.

Some of the other classes included:

Green Training with EcoBroker Energy Advantage which explored energy saving home
features and sustainable energy options

Helping Investor Cients

How to "Bulletproof" the Real Estate Transaction for Buyers and
Sellers (protecting them from "hitches" in the process)

Mastering Short Sales

Integrating New Technology into your Business

Techniques for Negotiating

Helping First -Time Buyers in a Shifting Market.

Helping High-End Sellers in a Shifting Market

These are only of a few of the great classes and instruction I received to bring home to Columbus, Ohio.  We are very excited about incorporating this knowledge into our client service.

There are a number of things that are happening right now that make Real Estate Consultants hopeful for the Spring.  First is the 1st time home buyers tax credit.  The hope is that as more buyers enter the market and buy an average price home, those sellers can then "move up" to a larger or at least different home.  Another hopeful sign is that as the warmer weather appears, buyers are beginning to start going to Open Houses and seriously considering a new home.  Thirdly, many people that I talk to are tired of all the negative information out there and realize that interest rates are very low and that prices are down, so now is the time to buy that home that they have always wanted.

The LaBuda Advantage Team has been on a number of listing appointments recently and there are some great new listings that will be on the market soon. Here is one example:

If you are one of those "move up" buyers who has always wanted to live in Stilson Highlands in the Worthington School District, we have the home for you!  Today,  1109 Limberlost Court, Columbus 43235 is going on the market.  It is a lovely 3245 sq ft 2 story with 4 bedrooms, a loft, 1st floor den, screened porch and finished basement. There are lots of updates and is a great home for someone looking in that area.  Please call if you'd like to see it!  Otherwise, watch our website for more new listings that will be coming in the next few weeks.

by Mark LaBuda

On March 4, 2009, the Obama administration launched a $75 billion loan modification and refinancing program to help "at risk" homeowners avoid mortgage default and possible home foreclosure.

The program will enable borrowers to reduce their monthly mortgage payments to no more than 31% of their monthly groww income.  Federal officials clarified the definition of "at risk" as follows:

• those suffering serious hardships, declines in income or increases in expenses
• those facing an interest rate hike
• those having high mortgage debt compared to income
• those owing more than their house is worth
• those who demonstrate other reasons for being close to default.

Any homeowners who feel they are presently in an "at risk" condition should consider contacting their existing loan servicer now to determine if they qualifiy for assistance under this program.

by Erin LaBuda

As a full time buyer's agent I have 6 years experience understanding buyers ever changing wants and needs.  Several years ago, in a "seller's market", buyers focused more on home location in relation to price and condition.  Many people were willing to get a house in the area they wanted that may have had some conditioning issues but was at the price they required.  As a representative of the buyer this mindset was challenging because many home buyers were looking for much of the same thing. This often led to multiple offers on one property leaving some buyers disappointed but remaining in the market to purchase a new home.  Today, mindsets have shifted and we are in a "buyer's market".

Today, home buyers are looking not only for location but they require both price AND condition to be the best the market has to offer.  With more homes on the market than there are buyers looking and buying the best way to know your home is going to get an offer is to price better than the competition AND condition better than the competition.  This probably doesn't sound new but where I can best explain this is through my own experiences.

This year, I have had home buyers come to me looking for homes between $80,000 and $100,00 all the way up to buyers looking for homes between $700,000 and $1,300,000.  And, all of these buyers want the same thing - the most square footage in the best location with the least amount of work to do at the best price...and the same thing applies in terms of home viewing...4 years ago my buyers would look on average of 12 homes before making a decision...today, my buyers are exploring all of the inventory which can mean looking at 30-40 homes before making a decision. So, what is the bottom line?  You can't change the location of your home but you can dictate where you price and how you condition your home before you allow the buyers to look at it.  Hiring a professional Realtor who offers services to help you acheive all of these things while providing you with the guidance throughout the process is the key to either making a smart investment as a buyer or helping buyers realize that YOUR home is the smartest investment available in the market.

We're getting lots of questions about the First-Time Home Buyer Tax Credit that Congress approved as part of the new Stimulus Plan.  It's a great deal for young home-buyers, so don't miss the opportunity!  If you are not a first-time home buyer, but you have children or friends who are, let them know about this!

Here are the facts in a nutshell:

• The tax credit is for first-time home buyers only.
• The tax credit does not have to be repaid.  (The earlier $7,500 tax credit did.)
• The tax credit is equal to 10% of the purchase price of the home up to a maximum of $8,000.
• The home must be purchased on or after January 1, 2009 and before December 1, 2009 in order to enable the buyers to qualify for the credit.
• Single tax payers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

If you have questions about this, call or respond to this blog and we'll try to answer them!

Many people wonder what the difference is between a "Short Sale" and a "Foreclosure".  The terms are used liberally in the media and you may have heard people talking about the great "deals" to be had in the real estate market right now.  Here is a quick overview of both types of sales:

A short sale takes place when the mortgage on the home is greater than the sale price of the home.  The bank or lender agrees to this in order to avoid a foreclosure.  Sellers often prefer short sales because they can save their credit rating, although they lose all of their equity in the house.   Banks can benefit from them because it costs them less than  foreclosures.  Buyers, on the other hand, often wait for months for the deal to go through only to see it all fall apart in the end.

A foreclosure sale occurs when the homeowner defaults on the mortgage and the bank or lender takes it over.  The homeowner walks away with no home and a disastrous credit rating.  The bank or lender becomes the property owner and has to market the home, which can be expensive.  This can result in a bargain price for buyers, but it is a tricky business and not one for novices!    Many foreclosured properties have been neglected stripped down, or are in distressed neighborhoods.  They might be located in developments with many foreclosed properties -- buyers should stay away from those!

There are good opportunities out there, but it is essential to have an agent, preferably one with extensive foreclosure or short sale experience, working on your behalf.  And you must be prepared to act quickly when the right property comes along!

By: Erin LaBuda

Subscribers to Columbus Monthly are aware that the March 2009 cover story is a new "rating the schools" edition.  This article has been a long time coming as the last in depth story regarding Columbus area schools in Columbus Monthly was done back in September 2001.  Assuming we are going to have to wait another 7 1/2 years before the next rankings hit the newstands, I thought that it would be helpful to provide some wonderful websites that rank our local schools on a more up-to-date basis.

The Ohio Department of Education has a website at www.ode.state.oh.us that you can link to that gives the most recent years report cards for all Ohio school districts.  If you are looking for truely unbiased information this is a great website.

If you are looking for more in depth information as well as actual parent feedback and thoughts then www.greatschools.net is a wonderful resource for current residents and prospective residents to a particular community.

Two other websites worth mentioning that provide information on local schools are www.cityrating.com/school and www.PSK12.com.

Please feel free to call me with any additional questions about helpful community websites and/or Columbus and surrounding cities information at 614-431-9049. 

by Nicki Cambell

I was reading an article on Forbes.com yesterday that listed the ten most affordable cities in which to retire and -- you're not going to believe this -- Columbus, Ohio was ranked Number One!  Now, many of you might not think of Columbus, Ohio  as a retirement destination, given the cold, gray winters and general lack of glitz.  But, the experts at Forbes.com were looking at some other qualities that make Columbus attractive to retirees.  Here are the ones they mentioned:

• Reasonable housing prices.
• Excellent health care.
• Relatively low cost of living
• Home of Ohio State University.  This offers seniors the opportunity to attend Buckeye football and basketball games and benefit from educational opportunities and arts programs.
• The convenience and accessibility of a smaller city.

As Realtors, we know that Columbus has lots of great housing opportunities for seniors -- condos, patio homes, ranch-style homes and, of course, independent and assisted living facilities.  In Worthington, we have a wonderful Senior Center, the Griswold Center, which offers exercise programs, speakers, day and overnight trips, a winter Farmer's Market and lots of other activities.  I know other towns in the area offer great senior programs, as well.

So if you're thinking of retiring and you don't require a beach or year-round warm weather, but you'd like a friendly town that's easy to get around in and affordable, consider Columbus, Ohio.  With your extra money, you can travel to a sunny destination or take a Carribean cruise!

by Jo-Anne LaBuda

Today I was reading the "In Contract" magazine (put out by the Columbus Board of
Realtors) and it had an article titled "What's In, What's Out with Home Buyers
in 2009?"

Because the real estate market is quite different than any we have experienced
in possibly the past 20 years, it is hard for both buyers and sellers to position themselves in the best possible way financially.  I'd like to share some of the points made in the article and add a few of my own.  My goal here is to help buyers purchase a home that suits them at a fair price and for sellers to sell their home with less hassle and also to receive a fair price.  Although this may sound like it can't be done -- both buyers and sellers getting what they want -- I believe it can be done.

BUYERS-Because the Columbus area housing is slowly returning to normal*,
according to the Columbus Board of Realtors, and the interest rates and loan
programs are very favorable for buyers, it is time for buyers to get off the
fence.  According to many local economic indicators, prices and interest rates
could be going up some time this year.

SELLERS- Do some of the things that you have wanted to do to your home. This
isn't the time for major and/or costly renovation but it is a great time to
make some changes such as flooring, painting, pulling wallpaper, new countertops
and/or appliances.  You can enjoy these updates until the time comes that you decide
to move.

SELLERS - Pricing based on sales in the neighborhood is no longer the best way to
price.  In today's market, you and your Realtor should position yourself in
front of the "FOR SALE" competition.    You need to ask yourself the following question and the
asking price will become apparent:  Why would someone purchase your home over
others in a similar price range?  Check to see what homes have expired
that were on the market in the past 6 months. Also how many homes are in
contract vs. available.  This will give you an indication of the absorption
rate.**

SELLERS AND BUYERS- Choose a Realtor with experience and  knowledge of the market in the area you're interested in.  Pricing is a fine art today both for buyers and sellers.  Knowledge
of the market  is imperative for you to make a good and not costly decision.

 * "normal" is a market where prices increase at approximately 2% per year and there isn't more than an average of 90days on the market.
** absorption rate is the number of homes that are in contract vs. homes for sale which will indicate the average number of days/months

by Jo-Anne LaBuda

Looking around my house this morning I noticed paper all over the place.  Paper
in my printer that had not been printed on and that that has, contracts,
notebooks full of paper, books, newspapers, magazines and on and on.....

I've decided to be more aware of the amount of paper used and not re-cyled...and
thought I'd share some of my ideas and ideas I've read in magazines.
Here are some simple things consumers can do:

I just looked down at the cardboard box which has a toner (plastic) cartridge in
it... two things to recycle.

Try the paper re-cycling bin instead of the garbage can for all paper.  Each
office home should have a recycling cardbox box for paper until you become 100%
paperless which definitely won't be in my lifetime.

Slow the flow of catalogs:  Go to catalogchoice.org and cancel as many catalogs
as you want at no cost.

You can cancel junk mail at 41pounds.org.  There is a fee but that group
estimates that each of us receives 41 pounds of junkmail/year.  This will
include credit card offers, coupons etc.

Many people cancel their newspapers and although it would be a great step
forward for a paperless society, I still love the feel of the newspaper in the
morning with coffee instead of going on-line.  Some people cancel all but the
Sunday paper.  I personally am not quite ready for that.

I love magazines but it isn't a bad idea to subscribe with friends and share
your magazines.  Also paperback books.  I save them all but really, when will I
read a fiction book a second time?  This works great with the exception of news
magazines which are ususally late with the news anyway.

Paying on-line saves paper, time and money. (envelopes and stamps)

Don't print everything that you receive via email, save a file of those items
you want to save and delete the others. Use the blank side of your paper if you
have to print something so you are using both sides instead of one side.

Use real plates and napkins (and flatware-plastic disposal is a whole other
issue) rather than paper napkins and plates.

Cancel the delivery of your phone book at yellowpagesgoesgreen.org.

Unfortunately all of these efforts have ramifications - no stamps -- no U.S. Post
Office, no magazines -- no magazine companies, no newspapers -- no newspaper
companies, no paper -- no paper companies where, in certain regions, the workers
depend 100% on the paper companies and forest industry that supplies it for
their employment.

Nothing is truly simple.