Weekly Real Estate Tips

2008-12-18T17:54:00.000-08:00

Should We Be Worried About Our Real Estate Investments?
by Clifford A. Hockley

As the stock market continues to respond nervously and yo-yo up an down, money market fund yields and 401K balances are shrinking, we are faced with the real question: where to put our funds to invest into the future?

Investors face many issues that continue to astound us, many related to real estate financing; let’s look at what has happened over the past few months.

The Bottom Line

We are in for 12 to 24 months of market reorganization. Those investors that have been sitting on their money will be able to find deals in many markets, especially in Nevada, California and Arizona. Local markets will have pockets of opportunity as properties with high vacancy rates will go back to banks.

The banks in turn will either liquidate the property or see if they can sell to the federal government.

Those investors who have not over-leveraged their investments will be able to sustain the vacancies. Those with too much leverage will need to create a method to negotiate with banks or bring in cash partners to reduce the risk.

So if you have money, you have 6 to 12 months to find some good deals, and hold onto them while the market improves. Simple demographics dictate that our population will continue to grow nationally, and that a strong market will return, albeit a more conservative highly regulated market.

Published: November 11, 2008 Realty Times http://realtytimes.com/rtpages/20081111_invest.htm

Aid for Buyers

2008-08-07T08:14:00.001-07:00

Aid for buyersFirst-time home buyers are offered refundable tax credits of up to $7,500 for homes bought between April 9, 2008, and April 1, 2009.

Real Estate Outlook: Housing Bill Approved
by Kenneth R. Harney
With home sales and prices down and unsold inventory up in many areas, the real estate market could use a jolt of good news -- and Congress just provided it.
The massive, 690-page housing bill just approved on Capitol Hill has plenty of mortgage-related provisions in it, but it also has an important stimulus program designed to jump-start housing sales: It's a tax credit, effective immediately, that could cut up to $7,500 off the federal tax return of anyone who buys a house before the end of next June, when it expires.
Buyers have to be first-time purchasers, or renters who haven't owned a house anytime in the past three years. The "credit" is actually more like an interest free loan, repayable over 15 years. Single taxpayers can only qualify for a $3,750 maximum credit. But it still puts thousands of after-tax dollars of incentives into home purchases -- money that wasn't there before.
Starting this week, hundreds of thousands of potential buyers who've been on the sidelines can purchase a new or resale house and qualify for the credit. The National Association of Realtors estimates that up to two million sales could be stimulated by the credit in the coming 11 months, and the National Association of Home Builders anticipates a "multiplier effect" in the move-up segment of the market.
From Realty Times July 31, 2008 Read the entire article at:
http://realtytimes.com/rtpages/20080731_realestateoutlook.htm

Jim Lubinsky
Angela Williams
Jackie Cautela
Re/Max Affiliates
614-766-5330 ext 119

Discount Brokers

2008-08-07T08:13:00.000-07:00

Realty Viewpoint: Discount Broker Leaves Sellers Stranded
by Blanche Evans
Rumors were flying last week that Iggy's House, a discount broker, is out of business. If they're not, they sure are acting like it. According to one of their clients, Janice Dowden, of Burleson, Texas, they aren't returning phone calls or emails.
That's put her in an uncomfortable position. She hired Iggy's House to list her home for zero commission. Now she's got a contract and wants the listing changed in the MLS to Pending, so other Realtors will know the status and not waste their time or gas showing her house.
Published in Realty Times July 7, 2008.
Read the entire article at:
http://realtytimes.com/rtpages/20080707_realtyviewpoint.htm
MLS only and other discount brokerages provide a very limited service. The program may fit a few unique situations, but is very risky for most sellers.
We have a client attempting to move to Columbus from the northeast Ohio area who listed with a discount MLS service. They are very disappointed. They requested a broker tour of their home and no one at the listing company is responding to them.
You only get what you pay for. Be very careful when signing a listing agreement. If you don’t understand what you are signing or it seems “too good to be true” DON’T SIGN!

Local activity
As of July 18, 2008
Single family homes on the market 14,610
Average days on market 119
Closed sales single family YTD 9,872
Average days on market closed 108
Source: Columbus Board of Realtors MLS listings
Days on market has decreased slightly in the past 2 weeks. Number of sales to current active listings suggests a 10.4 month inventory.

RE/MAX Affiliates
The Lubinsky Team
Jim Lubinsky, Angela Williams & Jackie Cautela
614-766-5330 x119

State of Housing

2008-08-07T08:11:00.000-07:00

Realty Viewpoint: New Housing Report: Rocky Road Or Reboom?
by Blanche Evans
The annual State of the Nation's Housing 2008 has just been released by the Joint Center for Housing Studies of Harvard University. Abandoning the upbeat tone of last year's report, the market analysis bluntly says that the economy can go one of two ways -- a severe recession that will take housing with it, or a mild recession which will allow housing to strongly rebound.
Realty Times July 24, 2008, Blanche Evans. Read the entire article at:
http://realtytimes.com/rtpages/20080624_realtyviewpoint.htm

According to a recently read book “Black Swan” the author strongly criticizes projections and forecasts as mostly being wrong. Looking back, most real estate economists were forecasting 2008 to put real estate back on track with recent years. Now they are saying that will take place in 2009 or maybe 2010. Bottom line – no one really knows.

Locally:

There are 14,590 single family homes in the Columbus Board of Realtors MLS active listings as of July 24, 2008. That number is up from a month ago.

The number of “days on market” is currently 120, down from prior months in the high 120’s.

Considering buying? This is a great time to get a good deal.

Have a home to sell? If you are also going to be buying, you can make up the lower sale price of your current home on the home you buy. Especially attractive if you are buying up from to a higher price range.

Jim Lubinsky
Angela Williams
Jackie Cautela
Re/Max Affiliates
614-766-5330 ext 119

Global Insight Market Performance

2008-06-11T07:17:00.000-07:00

Press Release GLOBAL INSIGHT, Inc. - 2008

84% of the Nation's Housing Market Declines in the First QuarterOnce Overvalued Markets Hardest Hit by Plunging Prices

Waltham, MA 2 June 2008 - Global Insight, the world's leading company for economic and financial analysis and forecasting, today released the first quarter 2008 update of the U.S. housing valuation analysis, House Prices in America, showing that single-family home prices fell for the third straight period, dropping at a steep 6.7 % annualized rate. Nationwide, 262 housing markets out of 330 in the study - the overwhelming majority of the nation's housing markets - experienced declines, accounting for 84% of all housing units and 89% of real estate value.

Read the entire article at:

http://www.globalinsight.com/PressRelease/PressReleaseDetail12748.htm

Locally:

We can find anything we want with statistics and you can view them as negative / positive / neutral.

Since Central Ohio has not seen major double digit “annual appreciation rates” we also don’t seem to be experiencing double digit declines. The inventory is large and number of days on market is above average, based on the past several years (some local market areas and price ranges are still performing much better than the Central Ohio average ie. Dublin $250-350,000).

Comparing 1st quarter 2008 to last quarter 2007 and to 1st quarter 2007:

Average sale price % change Average days on market

1Q 2008 $156,718 - 6.9 4Q 2007 110
- 7.4 1Q 2007
4Q 2007 $168,334 103

1Q 2007 $169,297 108

source: Columbus Board of Realtors MLS – single family detached homes as of June 5, 2008

The fallacy of the using average sale price to compare periods is that more “lower priced homes” may have sold in the most recent period making the average sale price lower, even if the true sale price of most homes sold did not decline. Most all indices and reported data is based on the “average sale price”.

The above are only indicators and should not to be taken as accurate representations of the change in your home’s value.

Jim Lubinsky
Angela Williams
Jackie Cautela
The Lubinsky Team
Re/Max Affiliates
614-766-5330 ext 119

Websites for MLS Search

2008-06-11T07:16:00.000-07:00

Realty Viewpoint: Research Study Of Online Competitors Still Relevant
by Blanche Evans
In August 2007 a little known study by eVOC Insights was published that compared online real estate sites such as RealEstate.com, Realtor.com, Trulia.com and Yahoo! Real Estate, among others. While some findings might be outdated nearly nine months later, others are spot on -- namely that making it easier for consumers to find homes should be the goal of any real estate site.
Realtor.com came out on top in a number of key metrics -- site traffic, brand recognition, property selection, search results, and home descriptions. Over half of short-term buyers preferred Realtor.com and Trulia was second in popularity. When it came to name recognition, Zillow was number two among consumers.
Published April 29, 2008 in Realty Times
Read the entire article at:
http://realtytimes.com/rtpages/20080429_realtyviewpoint.htm

To search all homes and condos for sale in the Columbus Ohio market and see daily updated listings visit

REAFFILIATES.COM/JLUBINSKY

There you can search on many different criteria and the information is current, unlike most other sites which do not update daily.

If you want to receive daily email updates of new listings fitting your criteria, contact me by email or phone.

Jim Lubinsky & Angela Williams
The Lubinsky Team
Re/Max Affiliates
614-766-5330 ext 119

Current State of the Market 5-23-08

2008-06-11T07:15:00.000-07:00

Realty Viewpoint: Real-time Housing Index Says Falling Prices Easing
by Blanche Evans
The Real-Time Housing Market Report shows an interesting trend. Housing prices are down a little over half a percent. That's no surprise, but out of 25 markets, only seven fell in asking price. That's a big improvement over March when listing prices fell 2.7 percent.

Read the entire article at:

http://realtytimes.com/rtpages/20080512_realtyviewpoint.htm

Locally:

The Columbus Board of Realtors MLS system as of May 21, 2008 shows “average days on market for single family detached” homes at 123 days. That is down from 129 DOM for prior months.

In addition, the Board reported that the first quarter of 2008 saw a slight decline in number of sold homes. In the month of April 2008 the number of closed sales was 1,548 vs 1,778 in 2007. Average sale price April 2008 was $162,005 vs $174,722 in 2007.

The spring and early summer of 2007 was still a very strong period. That made 2007 look like a good year. The second half of 2007 was very slow and that continued into early 2008.

Based on my recent conversations with other Realtors, title companies and lenders, the buying activity had picked up in April this year. We should see that activity reflected in closed sales for May and June.

We are all very optimistic that Central Ohio has turned the corner and will be improving throughout this year. Several specific market segments already show significant improvement. Dublin City for example has an average of 89 days on market for sold homes.

It’s a great time to buy a home!!

Jim Lubinsky & Angela Williams
The Lubinsky Team
Re/Max Affiliates
614-766-5330 ext 119

Signs of Market turning UP

2008-04-07T09:16:00.001-07:00

Realty Viewpoint: Real-time Housing Composite Shows Possible Bottom Near
by Blanche Evans
The Altos 10-City Composite Index was down 1.7 percent for the first quarter of 2008, with most of the decline occurring in March (1.3 percent.)
The index tracks homes for sale in 23 metros through real-time listing prices. (Editor's note: The 10-city composite uses the same metro data as the S & P Case-Shiller Index for Denver, Boston, Miami, San Diego, Los Angeles, Las Vegas, Washington, DC, Chicago, New York, and San Francisco. Other cities such as Dallas are calculated separately and will be included in a future 20-city index, once again mirroring the Case-Shiller metros, says Altos. The 20-city index is expanded to include Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle, and Tampa.)
The largest declines were in San Francisco (off 5.2 percent) and Las Vegas (off 5.2 percent) while southern cities Houston, Dallas, and Charlotte saw modest price increases of one percent or more for the quarter.
Asking prices went down in 14 of 23 markets during March, with Chicago reporting the largest drop in listing prices (off 3.9 percent.)
What's causing prices to drop are expanding inventories of homes for sale in all the composite cities. Chicago's listings for sale increased 12.3 percent.
At the same time, days on market improved with homes languishing 118 on average, down from 121 in February and 124 in January. The cities with the longest days on market were Miami and Detroit, both at 146 days. The fastest turnovers were in San Francisco (65 days on market) and Austin, Texas (67 days on market.)
What these figures suggest to me is that we're getting closer to a bottom.
Published in Realty Times April 4, 2008 Read the rest of the article at

http://realtytimes.com/rtpages/20080404_realtyviewpoint.htm

Locally, the number of sold single family homes year-to-date, January to March 31st is down 17% from 1Q last year. However, at the end of February it was down 20% suggesting the market is improving here in Central Ohio.

Currently there are 13,000 single family homes on the market and 2,900 condos listed in the Columbus Board of Realtors MLS system.

Showings have increased in the past 2 months and several lenders have indicated a higher number of new loans in process for buyers.

Jim Lubinsky & Angela Williams
The Lubinsky Team
Re/Max Affiliates
614-766-5330 ext 119

Drop in Interest Rates results in MORE Home Contracts

2008-03-24T05:54:00.001-07:00

PRESS RELEASE
COLUMBUS BOARD OF REALTORS
MARCH 20, 2008

Drop in interest rate resulted in more home contracts last month

(March 20, 2008) The number of homes contracted for sale in February 2008 took a very positive turn, topping contracts written
during the previous three months as well as the same month last year according to the Columbus Board of REALTORS®.

“The drop in mortgage interest rates in late January generated immediate housing activity,” says Greg Hrabcak, President of the Columbus Board of REALTORS®. “Many buyers were waiting for the drop. Some used it to be able to afford their first home as the lower interest rates helped them to finally qualify for a home. Others jumped at the chance to move up to a larger home.”

See the entire article and statistics at

http://www.columbusrealtors.com/16341.cfm

HOME STAGING

The newest word in preparing a home for the market
What is “home staging”?

You have decorated and furnished your home for your particular needs and lifestyle. However, that décor may not have the broadest appeal to buyers looking at homes. In addition, you may have ignored some needed maintenance items. Addressing these will result in a quicker sale at a higher price.

If you are considering selling your home or have your home on the market, you should invite a “home staging” professional to review your home to make it more market appealing.

There is strong supporting evidence that “home staging” really works, especially in this very competitive “buyer’s market”.

Call me for the name of an outstanding “home staging” professional
Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119
jimlubinsky.com

Market Timing!

2008-03-13T09:40:00.000-07:00

MARKET TIMING!

THE DOOR TO RICHES

If we had cashed out of the stock market last September we would have protected the $70,000 drop in portfolio value. How do we know when to get out? More importantly, how do we know when to get back in?

Stock markets move up very quickly. History shows that stock market prices move up faster than they fall. Timing the market is every investor’s dream. Few ever come close to succeeding. Can you predict the future?

The same is true of the real estate market. Opportunities abound right now to buy homes, offices space and more at greatly discounted prices compared to 2 years ago. Add to that, discounted loan interest rates and you have a rare opportunity to buy today.

First time buyers can benefit tremendously now! Also, current homeowners desiring to move to a larger home or better neighborhood have a tremendous opportunity. Homeowners might sell their current home for a little less than in prior years, but they can buy the next home for a lot less (example: you sell your $175,000 home at $10,000 less than you might 2 years ago and you buy $350,000 home at $20,000 less than you would have paid 2 years ago).

A well know Columbus real estate developer made his first fortune during the great depression by buying homes at half the previous values. A similar opportunity exists now. The opportunity window will close quickly when it starts to close. Take advantage now.

Current Columbus Ohio Real Estate Sales Stats

February 2008 2007 % change

Single family homes sold 1,244 1,378 -9.7%
Average sale price $167,590 $176,130 -4.8%
Days on market 117 116

Condominiums sold 190 245 -22.4%
Average sale price $146,200 $140,610 +4.0%
Days on market 144 132

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

www.jimlubinsky.com

Condo Insurance Questions

2008-01-31T07:01:00.001-08:00

6 condo insurance questions
By Mark Terry • Bankrate.com

To state the obvious, a condominium is not the same thing as a house. Usually, there's no backyard or basement, and you don't have to worry about cutting the grass or shoveling a front walk.
Insurance is another area where homes and condos differ. Condo owners are typically responsible for insuring just a portion of their property on their own. However, rules differ from complex to complex, and it's important to ask the right questions to ensure you have proper insurance coverage.
Here are six things you need to know about insuring your condominium

6 questions about condo insurance

1.
What does your master policy say?
2.
How expensive is the association deductible?
3.
How much coverage is appropriate?
4.
Cash value or replacement cost coverage?
5.
Have you insured contents and structure?
6.
Are you covered for flood and wind damage?

Read the entire article at:

http://www.bankrate.com/brm/news/mortgages/20080121_condo_insurance_a1.asp?prodtype=mtg

Jim Lubinsky
Mary Williams
Re/Max Affiliates Realtors614-766-533

Trends in Home Decor and Finishes

2008-01-23T06:04:00.001-08:00

What's In, What's Out with Home Buyers in 2008
by Mark Nash
What's in and out this year?
Mark Nash is a Chicago-based residential real estate author, broker and columnist. Mark's analysis, tips and trends are featured in national magazines, newspapers, on network and cable television. His annual year-end forecast; "What's In, What's Out with Homebuyers" is utilized by more than 500 news organizations in North America.

Want some fun and interesting reading about housing trends, visit:

http://realtytimes.com/rtpages/20080103_whatsinout.htm

Likely the most used material in Central Ohio homes today is granite. Most homebuyers have opted for granite counters in their kitchens. Ceramic tile has dropped to the wayside and been replaced with hardwood floors in kitchens and lighter wood finishes seem to dominate over the darker oaks of earlier days.

Considering doing some remodeling in 2008? You might want to consider checking on local trends. Certainly you want what appeals to your tastes and desires, but if you might sell in the next few years, your investment will return much higher if you stay with current trends.

Questions on home finishes and decorating trends? Give us a call.

Jim Lubinsky
Mary Williams
Re/Max Affiliates614-766-5330 ext 11

Mortgage Rates Down to LOW LEVELS

2008-01-23T06:03:00.001-08:00

Real Estate Outlook: Mortgage Rates Down to the Low Levels
by Kenneth R. Harney
Continuing declines in mortgage rates -- down to the lowest levels we've seen in nearly two years -- should be brightening the outlook for anyone interested in buying or selling real estate.
…… here's a smart strategy: Make the most of what we've got -- the lowest interest rates and home prices we've seen in years in most markets.
Recession or no recession, that should be a winning combination if you are serious about real estate.
Excerpt from Realty Times article
Published: January 17, 2008

Read the entire article at:
http://realtytimes.com/rtpages/20080117_realestateoutlook.htm

Columbus Ohio news release:
Third Federal today is offering 5.49% 30 year fixed rate January 17, 2008
The next few months is the perfect time to be buy. As activity accelerates in the late spring and early summer months, interest rates always move up and so do asking prices.
Investors and home buyers need to act now to take advantage of the perfect opportunity!!

Jim Lubinsky
Mary Williams
Re/Max Affiliates
614-766-5330 ext 119

Rates always HIGHER after the last FED CUT

2008-01-23T06:02:00.000-08:00

Rates Always Higher After the Last Fed Cut
by David Reed
The trick is guessing which cut will be "the last one"!
Mortgage rates are tied to their respective mortgage bond, which are traded throughout the day.
Mortgage bonds ANTICIPATE Fed moves ... they don't REACT to them.
If the mortgage markets (and other securities) figure the Fed is through with cutting rates that means the economy is most likely on the mend.
A healing economy drives up demand for products and services. A healing economy can stir up inflation.
Future rate moves now mean rate increases. And mortgage rates will hinge not on the likelihood of a Fed move but whether inflation is on the horizon.
Read the entire article at Realty Times:

http://realtytimes.com/rtpages/20071214_ratehighercut.htm

Example:

On December 6, 2007 we saw 5.70% on 30 year fixed no points with Third Federal. Next day it moved to 5.75% then to 5.95% 3 days following. Third Federal was at 6.10% on December 14, 2007, one week later and after the Fed reduced rates Third Federal is my bellwether for interest rates.

Considering a purchase or refinance? Timing is everything in the interest rate game. Generally, no other influences involved, interest rates go lower during the winter months as demand for loans cools. If you are looking for that really favorable interest rate, the next few months might be the best period to purchase or refinance.

Jim Lubinsky
Mary Williams
Re/Max Affiliates
614-766-5330 ext 119

Investor OUTLOOK

2008-01-23T06:01:00.000-08:00

Investor Outlook
by Kenneth R. Harney
If you're what's known as an "opportunity investor" in real estate, looks like your prime time may be now ... or very soon!
Economists say the next 12 to 18 months could be your best period since the early 1990s to pick up property at depressed prices -- discount diamonds in the rough and turnaround situations.
That's because the real estate downcycle is close to running its course in many local markets……………
Read the entire article at:
http://realtytimes.com/rtpages/20071129_investoroutlook.htm

Considering a real estate purchase in the next 6 months and want to get a great deal on distressed property?
Here is a key strategy to ponder:
Some buyers consider sheriff auctions. Unless you are a seasoned investor buying multiple properties and can afford to sometimes loose, avoid this avenue.
Instead, consider this approach: banks are buying back their collateral at the sheriff auctions in hopes in increasing the price and reselling. Find those properties. You can negotiate, you can include inspection contingencies (no contingencies on Sheriff’s auction properties) and a patient buyer can buy below the auction price.
Real life examples: US Bank bought back at Sheriff auction at $130,000 in August and is currently asking $124,900 in Westerville; Countrywide bought back at Sheriff’s auction $249,965 in August currently in contract for $225,000 in Powell.
The big difference between the current real estate market and past depressed markets is that – interest rates are very low and money very available – not true during past downturn markets. This is great news for investors and those looking for a place to live.
Want to know more?? Email or call us.

Jim Lubinsky
Mary Williams
Re/Max Affiliates
614-766-5330 ext 119

Water Leak Causes $50,000 Damage

2008-01-23T06:00:00.002-08:00

WATER LEAK CAUSES $50,000 DAMAGE

A homeowner traveling in Europe came home to $50,000 water damage from a broken pipe. Luckily the neighbor discovered the problem when noticing ice forming on the driveway in front of the garage door and stopped it before more damage occurred.

If you are away from home for more than 1 full day, turn off the main water supply and turn down the water heater thermostat to “vacation” or “off”.

Another client lost $25,000 due to water leak damages not covered by insurance. The insurance policy contained an exclusion “water damage to a vacant property”. Mom passed away and the house was not occupied. The claim was denied.

If you know anyone with a vacant home, have them check with their insurance company for exclusions in coverage and most of all, insist they TURN OFF THE WATER.

STATE OF REAL ESTATE TODAY IN COLUMBUS OHIO

As of November 15, 2007 source: Columbus Board of Realtors MLS data

Number of homes sold year to date is down 9.8% compared to 2006 single family homes sold.

Number of homes sold in October (represents contracts written in August/September) is down 13.8% on single family homes

Good news is that HOMES ARE SELLING and a rate that is still well above 1990’s levels. People are moving, changing jobs, getting married, etc and need homes.

Call us to discuss strategies to sell your home and to buy your next home. There are several new strategies to employ in today’s changing marketplace. You need to have the most up-to-date approaches in your arsenal.

Jim Lubinsky
Mary Williams
Re/Max Affiliates
614-766-5330 ext 119

Buying a Home Isn't Stupid!

2008-01-23T06:00:00.001-08:00

Buying A Home Isn't Stupid, Says NARby Blanche Evans
The National Association of Realtors has had its share of battles this year, but none is more frustrating than the national media telling homebuyers that investing in a home is a stupid idea.
First, they keep trying to make real estate into a national market, and then they treat the approximately 2 percent loss in housing prices for 2007 like the Crash of 1929.
From the Housing Bubble to the Mortgage Meltdown, the press has been relentless, even though most people have lost more money on their SUV's and their stock portfolio than their homes this year.

Stocks and houses aren't the same. Over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield nearly $24,000. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, or over $110,000.

Read the entire article at:

http://realtytimes.com/rtapages/20071120_buyinghome.htm

As of November 20, 2007 the 30 year fixed interest rate for owner occupied homes is 6-6.25%. It is a GREAT time to buy a home.

Jim Lubinsky
Mary Williams
Re/Max Affiliates
614-766-5330 ext 119

Bankrupt Broker Listings SOLD

2008-01-23T05:58:00.000-08:00

Who's In Your Pocket Now? The Foxtons' Bankruptcyby Blanche Evans
After blowing through approximately $62 million in private investors' money, plus another $40 million from Foxtons' CEO Jon Hunt, New Jersey-based "full-service discount" broker Foxtons North America declared bankruptcy on October 5, 2007. Foxtons' sellers who were still under contract were threatened with lawsuits by the company if they canceled their listings. Then, they were stuck with no service until a hearing on October 27, when a federal bankruptcy judge sold them like slaves to other brokers.
Read the entire article at:
http://realtytimes.com/html/ad-msoffice.htm

There have been many discount brokerages over the years that opened in Central Ohio only to fold and cease to exist shortly thereafter. A court has now ruled that the listings belonging to a bankrupt brokerage are assets to be sold on the open market, regardless of the lack of service to or the complaints from the home sellers.

If you or someone you know are planning to sell your property, choose the brokerage and agent based on time in the business and experience not based on the real estate service fee.

Re/Max Affiliates has been operating since 1985 and I have 18 years in real estate sales, including the difficult to achieve certifications of “certified residential specialist” and “certified relocation professional”. You and your friends will greatly benefit by having a trained professional on your side.

Jim Lubinsky
Mary Williams
Re/Max Affiliates
614-766-5330 ext 119

ARM Mortgages

2008-01-23T05:56:00.000-08:00

ARM Mortgages Adjusting 2007 / 2008
Buyers in 2002 and 2003 Take Note

A large portion of the 5/1 ARM loans were made during 2002 and 2003 when the interest rate spread between 30 year fixed and ARM loans was significant. ARM stands for “adjustable rate mortgage”.

The 5/1 ARM is a fixed interest rate for 5 years then becomes an annually adjusting loan based on some index and margin. Many buyers signed up for this loan in the past several years.

If you or someone you know has an ARM loan, this might be a good time to examine the options. Pass this email along to anyone you know who may have an ARM.

There are several options to taking the best advantage of an ARM loan: sell the property and payoff the loan, move to another home; do nothing and allow the ARM to renew at a new interest rate; refinance to a new loan either another ARM or a fixed rate loan; convert the ARM to a fixed rate loan (an option some lenders have built into their loan).

Now may be the ideal time to review your ARM and make some decisions. If your ARM is up for renewal and a possible rate change within the next 12 months, you should evaluate your options now for a possible refinance or conversion, assuming you are not considering a move in the next 12 months.

Let us help you sort through the options and make the best choice for yourself in this maze of options available.

Jim Lubinsky, Mary Williams
Re/Max Affiliates614-766-5330 e

Housing Trends

2007-10-11T11:09:00.000-07:00

Housing TrendsAmerica's Most Stable Housing MarketsMatt Woolsey, 10.01.07, 4:00 PM ET

Also primed for a stable year are Pittsburgh, Columbus, Ohio, and Dallas. They follow Seattle in our ranking of the country's 10 most stable markets. All are projected to have median home sale price increases next year, thanks to a combination of factors including lower-than-average inventory levels, little price volatility and high job growth.
(excerpt from Forbes.com article)

Columbus, Ohio
Median home price: $153,900
Annual price change from 2006: -1.2%
Projected price change to 2008: 3.49%
Columbus, like many other cities in Ohio, has witnessed a deteriorating subprime lending situation. While things aren't going to turn around instantly--projections list Columbus as the 17th worst market for delinquencies (out of 40)--the city's sales rate is picking up. Based on Moody's Economy.com calculations, next year Columbus should boast the eighth-fastest sales rate of the 40 markets examined.
Read the entire Forbes.com article at:

http://www.forbes.com/2007/10/01/property-stable-homes-forbeslife-cx_mw_1001realestate.html

Statistics for Columbus Ohio

Single family homes are about 8% below the number of closed sales year-to-date 2006 as of September 30, 2007. The numbers are preliminary and final totals may show a lesser decline.

Condominiums are about 1.3% below 2006 levels based on preliminary counts.

Both categories have significant inventory levels with single family at 16,000 with average “days on market” of 120 and condominiums at 3,437 with an average “days on market” of 133.

Considering that 2006 was another record level year, 2007 is healthy and doing well.
(above information based on Columbus Board of Realtors MLS data)

Current interest rates are still very attractive at 6.25% for 30 year fixed loans.

The Lubinsky Team
Re/Max Affiliates
Jim Lubinsky – Mary Williams – Cheryl Chapin
614-766-5330

Panic Working like a Charm

2007-09-13T07:09:00.001-07:00

Panic Working Like A Charm; Home Prices Mostly Down In Juneby Blanche Evans
Despite positive fundamentals such as low unemployment, rising wages, and low borrowing rates, consumers are panicked about the housing market and sitting out a golden opportunity to buy at low interest rates with plenty of inventory to choose from. One reason is the constant drumbeat by the press that housing prices are softening, but consumers aren't getting much insight or perspective along with their daily thumping of bad news.
Read the entire article in Realty Times at:
http://realtytimes.com/rtapages/20070829_paniccharm.htm

Local Market

Locally, we continue to see homes selling at a rate just below 2006 levels, which was another record year. Sellers who purchased on the past 2-3 years are struggling to break even on their net funds received at sale. But that’s nothing new. We tell buyers to expect to breakeven after 3 years and likely loose some money if you have to sell before that time.

The primary issue continues to be the size of the inventory (16,505 homes for sale as of August 31, 2007) coupled with what appears to be more repossessions and bank owned properties than we have seen in recent past years. Some of the bank owned properties sell below the “expected market value” in order to sell quickly.

Many of the bank owned homes, being under-priced, sell very quickly and with multiple offers. It just means that in most areas of Central Ohio sellers must price competitively, be in excellent condition compared with the competition, and be ready to wait a little longer to sell than in past years.

Average days on market for single family homes normally was 80-100 days in past years. Average days on market for all homes sold January 1st to August 31, 2007 is 105 days. Average days on market for current active for sale homes is 117 days.

The real estate market is still healthy in Central Ohio.

Exciting NEW Technology!

2007-09-13T07:06:00.000-07:00

EXCITING NEW TECHNOLOGIES HERE NOW!

The new kid on the block of fun real estate information websites:

Cyberhomes.com

Not exactly new, as this site existed in a different format about 5 years ago. Then Fidelity National Financial bought the rights. The website has re-emerged as a Beta site and can be viewed at the above address and includes pricing (questionable accuracy), 4 sided views of any property and rooms, sizes, etc.

So what happens to Zillow.com? It’s a fun site to play with and has been enhanced, but the owners have far fewer resources than the newest player “Fidelity National Financial”. Zillow may be gone soon.

What does it mean to you??

Wonderful time to have such great and detailed information available so quickly and easily on any property anywhere in the US. You can view properties in any city (friends, relatives, anyone you want to know more about) with just an address. You can learn more about the real estate of a “market area” or “neighborhood” much faster than driving around the area and visiting the local map room

Information Paralysis??

Now that we have all this great information and data, what do we do with it? It is still important to make good decisions in our buying and selling of real estate. The purchase and sale of real estate is still the largest dollar transaction we perform in our lives. It impacts our lives and often the lives are all our family. Does the amount information available increase your performance and probability of making a good decision?

Now more than ever, it is critical to have a trained / experienced professional to help interpret the data. Now more than ever a buyer or seller need the skills of a seasoned professional to interpret the information and to help make good decisions.

Considering buying or selling real estate? Know someone who is??

Let’s talk!

Condo Growth

2007-08-28T10:19:00.002-07:00

THE CONDOMINIUM MARKET IS ALIVE AND TRIVING
IS NOW THE TIME TO BUY A CONDO?

In Central Ohio condominiums now make of over 10% of the resale home market. In the past 5 years condos have kept pace with or often outpaced the sale of single family detached homes, showing annual appreciations of 3-6% and turning over inventory 2.5 to 3 times annually.

Other info extracted from a recent article

· Single females make up 42 percent of condo buyers. Single males make up 20 percent, while married couples constitute 30 percent of condo buyers.
· NAR's Profile of Home Buyers and Sellers 2006 says that condo buyers (median age: 43) are older than single-family home buyers (median age 41.) "The median age of condo buyers skews older because condos attract the bookends of the housing market -- first-time buyers, and empty-nesters (boomers) and retirees, who no longer need a large single family home but like lots of amenities in a simpler lifestyle," explains Molony.
Read the entire story by Blanche Evans in Realty Times at:

http://realtytimes.com/rtapages/20070529_sellcondos.htm

The Central Ohio real estate market has been showing a good level of buyer activity in the past few weeks. We are all hoping that gas prices and rising interest rates result in little or no impact.

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

NAR Market Update

2007-08-28T10:19:00.001-07:00

National Association of Realtors Second Homes Report Shows Investors and Others Still Buyingby Blanche Evans
Not surprisingly, the National Association of Realtors' annual Investment and Vacation Home Buyers Survey showed that homes purchased for investment or perhaps speculation slowed in 2006, but eyebrows may bolt upwards upon hearing that second home purchases set a new record -- up from 2005, what many call the end of the so-called housing bubble.
NAR says that second-home sales were mixed in 2006, with the combined total of vacation- and investment-home sales accounting for 36 percent of all existing and new residential transactions -- down from 40 percent of sales in 2005, according to the National Association of Realtors®.
Read the entire article in Realtytimes by Blanche Evans at:
http://realtytimes.com/rtapages/20070501_investorssecond.htm

Locally, the number of single family homes sold was down 16.5% from April 2006, (single family April 2006 sold 1918 vs April 2007 sold 1601) while condominiums were also down 18.5% (condominiums April 2006 sold 329 vs April 2007 sold 268). The figures for April 2007 are preliminary data from Columbus Board of Realtors MLS data.

Year-to-date sales for single family are down 9.5% while condominiums are down 5.8%.

The current active inventory of single family homes for sale is now at 15,248 with condominiums at 2,882. Inventory continues to grow with slower sales and spring time new listings. Inventory levels continue to indicate a 10 month inventory of homes. In 2005 that level was 5 months.

Homes properly priced and in excellent condition are selling at close to ask price and in reasonable time.

The market is still recovering from the larger than historically levels of repossessions, foreclosures and short sales. Lenders overburdened with repo inventory are dumping homes at prices well below the expected market price and impacting the homeowner attempting to sell at their expected price level.

Want information on your home and the market in your neighborhood?

Jim Lubinsky
Re/Max Affiliates
614-766-5330

Please Pass the Mold

2007-08-28T10:18:00.001-07:00

Please Pass the Mold

We recently encountered a mold issue in a listing which, in part, led to the loss of a buyer for a property. Seems we have all become super sensitive to the issue. Everyone has heard of the “black mold” that kills. The article below expands a bit on what you should look for and how to avoid having a mold issue in your home.

Mold, a Growing Problemby Phoebe Chongchua

Mold is often a silent but costly roommate. Sometimes homeowners aren't even aware that there's an issue until the problem has progressed to a more serious level.
"If someone has a water intrusion which could come from many different sources, has had an indoor humidity problem … or possibly a building defect … and they don't deal with it within the first 24 to 48 hours to get it dried out effectively, then a problem can initiate," says William Salesky, Co-CEO Sherlock Healthy Homes, Inc.
Read the entire article by: Phoebe Chongchua at:
http://realtytimes.com/rtcpages/20070402_moldgrow.htm
Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

New Build Tax Proration Adjustment

2007-08-28T10:17:00.000-07:00

Get Money Back On A New Home
Post Holiday Rebates Pay the Bills

Last month we sent over $7,500 to new homeowners. It was a fun time in our office.

The traditional property tax pro-rations done at closing on new build homes are nearly always inaccurate and unfair to the buyer. To help rectify the situation, we include a clause in each contract calling for a “post-closing adjustment”. When the true property tax bill is available the following year, we collect the information and forward our calculations to the building company. The result is a rebate to our client in amounts that have range close to $2,000 each.

Seems that 90% of home buyers are not aware of the issue and fewer even remember to go back and collect the adjustment, since six to twelve months have passed after their closing. Also, the property tax bill is paid by the lender and the new home buyer has forgotten about the adjustment that is due to them.

So each year we collect the information from the county auditor, prepare a summary of the adjusment and submit the request to the building company to obtain a reimbursement for our “new build” clients. Imagine the surprise of receiving a check for $1,750 that you did not expect.

This is just one of the services we provide that is “over and above” expectations.

If you or someone you know (friend, relative, co-worker) are considering buying or selling real estate consider the advantages.

Call
Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

Insurance Policies Hold Surprises

2007-08-28T10:11:00.000-07:00

Insurance Policies Hold Surprisesby Broderick PerkinsRealty Times
Most homeowners and renters wouldn't mind paying more to insure their home but, ironically, most of them don't have enough coverage to protect them from risks they face.
Read the entire article at:
http://realtytimes.com/rtcpages/20070809_insurepolicy.htm

We have a client who experienced water damage from a broken pipe in his mother’s home, which he had just inherited. The insurance company disallowed coverage on the $25,000 in damages because: “a clause in the policy excludes water damage on vacant properties”. Imagine his surprise.

We always highly recommend turning off the water and water heater during absence from your home. Especially necessary for vacant homes that are on the market for sale. You also do so while taking short trips away from home for more than 1 day.

A client living in Michigan ignored our recommendation and incurred substantial damage when the water heater (located on the first floor) broke and was discovered by the buyers just before closing. We almost lost a buyer. Another person traveling in Europe for 2 weeks experienced $50,000 in damages from a broken pipe. Recently one of our listingclients awoke in the morning to a leaking water supply line on the toilet and damage was minimized by quick discovery. This was a 3 year old home, so new homes are not immune to broker water lines.

What does your homeowner’s insurance cover? Want a review of coverage or a comparison of rates? Call our friend Keith Hughes at American National Insurance 614-895-3220.

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

Homestead Tax

2007-08-28T10:10:00.002-07:00

NEW HOMESTEAD TAX BREAK EXTENDED
Effective today, anyone 65 years of age as of 12/31/07, or permanently disabled as of 1/1/07, is eligible to receive the homestead reduction if they owned and occupied the residence as of 1/1/07 . For more information and to fill-in an application online click here or download a form.
Above message from Joe Testa, Franklin County Auditor.

REDUCED PROPERTY TAXES

The program is applicable to everyone owning the home they live in anywhere in Ohio.

Who do you know that is or will be 65 years in 2007? Notify them to apply. They have until October 31, 2007 to make application for reduced property taxes.

Questions, call your county auditor or me
614-766-5330 ext 119

We recently assisted one of our clients in getting a copy of her deed and in completing and filing the application form. We are here to help you, your family, friends and neighbors.

Columbus Market
Preliminary Stats for July

Not too bad considering the news on the national front.

July of 2007 was down in number of closed listings from 2006 by 3.5%
Average sale price for July 2007 vs 2006 was off approximately $2,600

Year to date 2007 vs 2006 number of closed sales is down 6.8%.
Average sale price 2007 vs 2006 was down $2,700.
An improvement from the June report which had number of sales down 10%

The big issue is the inventory size currently at 16,681 with average days on market at 113. Based on number of sales in the first 7 months of 2007, we have a 9.2 month inventory of homes.

The above was taken from the Columbus Board of Realtors MLS system data on August 6, 2007.

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

Optimistic Stock Market

2007-08-28T10:10:00.001-07:00

Optimistic Stock Market Investors Could Spill Over Into Housingby Blanche Evans
This week, the Dow Jones Industrials reached 14,000 points, testing a new psychological barrier. To put the index into perspective, think back to July 2006. Housing was widely recognized as slowing, gas prices were rising, and the DOW was straining to reach 11,000. Since then, the Dow has risen well over 30 percent. That's a good year for equities investors, who may decide that now's the time to trade up to that bigger, better home.
Right now, the picture is fairly rosy -- unemployment is held to 4.5 percent. Gas prices are stable, but set to rise, which could throw a damper on things. But if the stock market is anything like it's been in the past, we'll soon have a number of investors looking to cash out and reinvest their newfound riches.
Read the entire article published by Realty Times at:
http://realtytimes.com/rtapages/20070717_optimisticmarket.htm

Locally
We are seeing more multiple offers on listings, especially those listings priced a bit below the market.
Lenders who now own homes due to foreclosures are pricing the properties below market prices to stimulate interest and to generate multiple offers. The lender receives several offers thus creating a bidding situation which results in the “final sale price” often very close to or sometimes above the original “asking price”.
Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

What Happens When a FSBO Deal Goes Bad?

2007-08-28T10:08:00.000-07:00

What Happens When a FSBO Deal Goes Bad?

Homebuyer Regrets Going "FSBO"by Blanche Evans
Homebuyer Alan Jacobson wants to tell the world, "Always use a Realtor." After weeks of disputes, he outlines his side of the case on a website called FSBOgonewrong.com where he and the seller are now in a spaghetti western standoff.
Read the entire article at:

http://realtytimes.com/rtapages/20070629_regretfsbo.htm

Who do you know that is looking for a home and considering the purchase of a “for sale by owner” without having a Realtor represent them? Call me now. Jim Lubinsky 614-766-5330 ext 119

Columbus Real Estate Sales performance:

Single Family Homes sold

January 1 – June 30 2006 11,455
2007 10,380 preliminary count
change -10%

Condominiums

January 1 – June 30 2006 1,909
2007 1,829 preliminary count
change - 4.4%

The Columbus Real Estate market is still well and homes are selling. We have seen several multiple offers on properties lately. Columbus has traditionally outperformed the national market and continues to do so.

Sellers – your home must be in top condition and priced right OR priced well below the market if you don’t want to prepare it properly.

Buyers – don’t expect major concessions from sellers. Offers at 10% or more below ask price are likely to be rejected. Be realistic in your expectations and don’t be swayed by media and national statistics.

2007-03-08T08:00:00.001-08:00

GOOD MARKET – BAD MARKET ?
HOW IS THE REAL ESTATE MARKET SHAPING UP FOR 2007 ?

A brief summary of the year so far shows results compared to 2006 year to date.

2007 2006
Single family homes

Sold single family homes 2,554 2,625

Average asking price $177,646 $175,163

Average sale price $170,356 $169,498

Percent sale to ask price 95.9% 96.8%

Average days on market 113 100

Current active for sale homes ` 13,290 n/a

Condominiums

Sold condominiums 398 379

Average asking price $141,706 $145,281

Average sale price $138,705 $142,489

Percent sale to ask price 97.9% 98.0%

Average days on market 132 113

Current active for sale condominiums 2,631 n/a

Interest rates are still at an all time low (last week 5.875% on 30 year fixed with 20% down) and the weather continues to be reasonable enough for buyers to go out looking.

National and local forecasters are anticipating a good year and citing 2006 as “the bottom of the trough” for real estate. Builders and their forecasters are anticipating a robust 2007 compared to 2006.

In contrast, the national and local news media continue to paint a less than favorable picture of the real estate market, leading many buyers to make offers 5-10% below asking price, which price has often been reduced from the original ask price. Buyers and sellers need to become more realistic in their expectations and not be so influenced by media “mis-information”.

We truly believe this is a good time to both buy and sell a home. Low interest rates, the expectation of values rising in the coming years and the general good health of the economy all bode well for your real estate investment.

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

Credit Scores

2007-01-23T07:17:00.001-08:00

Credit Scores

What Impacts Your Score?

Here is some new information. A class action lawsuit claims that certain credit issuers (name in particular is Capital One) withhold certain information about your credit experience. For example, the allegation is that Capital One does not report the actual outstanding balances for its credit card users, but only the credit limit.

The scoring system used by the big three credit reporting companies then assumes that the entire credit line amount is being used and reports it accordingly. The conjecture is that this can lower one’s credit score by 20-50 points if that credit card holder only has 50% or less outstanding balance compared to the credit line amount.

Not much we can do about this ourselves except wait and see what develops from this lawsuit or only have credit cards from entities that report full outstanding balances to the credit reporting companies.

Read the entire article at:

http://realtytimes.com/rtcpages/20060703_suitomissions.htm

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

Too many Agents....Not enough work??

2007-01-23T07:16:00.000-08:00

Too Many Agents, Not Enough Work?by Al Heavens
Is the market oversupplied with real estate agents? One would think not, considering the increase in inventory in many regions -- 60 percent to almost 300 percent in some places (Columbus MLS listings are up about 16% from 2005 level).
Yet survey after survey has a shown that a very small number of agents and brokers handle a very large percentage of the residential business, which means that a lot of Realtors -- probably the ones newest to the business -- are being left in the cold.
I remember a time somewhat like this one……... We had just put our first house on the market because we had outgrown it, and the private school to which we wanted to send our ……. son would have required expensive transportation if we didn't move closer.
My wife and I knew well that our neighborhood was on the fringe, there were safety issues, the number of houses we were competing against was staggering, fixed interest rates were exceeding 10 percent, but we had no other choice.
The first agent had been the business less than a year, and only knew how to sell in an up market. The house sat on the market with no offers for three months; the agent couldn't be bothered to show up for scheduled open houses. Each time we called to ask for feedback or suggestions, she would tell us not to worry because she was sure the house would sell.
The next agent also was a newcomer who, after an enthusiastic presentation and many promises, fell victim to personal problems -- a messy divorce -- and left us hanging for another month.
Fortunately, a veteran agent (age 80 with 40 years in the business) took over from her colleague and was able to sell the house for the asking price in a few days.
When the membership of the National Association of Realtors began to grow in 2001, many of the newcomers were attracted by the mistaken belief that the average agent was earning hundreds of thousands of dollars a year by doing virtually nothing.
They'd see all the sold signs, multiply the number by a 6 percent commission, and think it would be easy to make a living. What they didn't realize was that they should divide that number by 4, because that is about what they will earn after expenses, if they are lucky. Net commission is more like 1.5 percent.
Remember that the housing industry has been the linchpin of the economy since the turn of the century. The flow of people in need of gainful employment into real estate was more like a tidal wave, and it didn't bother anyone that, in the words of one real estate economist, just because half of the agents in the business can't financially justify being in real estate doesn't seem to matter.
For all but 6 percent of today's agents, real estate is a second career. I've spent the last several years attending gatherings of real estate agents during which I'd hear someone say he or she is a real estate agent, "But I used to be a teacher." That person seems to be apologizing for being in real estate because it is incongruous with his or her self-image.
For those few for whom selling houses has been their only career, this revolving-door attitude robs real estate of professionalism. A lot of people in other fields believe they can moonlight as real estate agents to supplement their incomes. But it has to be more than a part-time occupation, especially when you deal with first-time buyers who need face-to-face contact and have you accessible all the time.
Published: August 31, 2006 published in “Realty Time” newsletter and edited by Jim Lubinsky
The National Association of Realtors membership rose in recent years from 700,000 to 1,400,000. Locally, the Columbus Board of Realtors rose from 3,500 to 7,000. A recent statistic indicated that 97% of new agents do not renew their license the second year.
If you want a full time professional agent give me a call.
Selling real estate for over 17 years in Central Ohio.
Jim Lubinsky
614-766-5330

Mortgage Rates Continue to Drift

2007-01-23T07:15:00.000-08:00

Mortgage Rates Continue to Drift Lower as Housing Market Eases Back from Record Highs
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 6.44 percent with an average 0.4 point for the week ending August 31, 2006, down from last week's average of 6.48 percent. Last year at this time, the 30-year FRM averaged 5.71 percent. This is the lowest the 30-year FRM has been since the week ending April 6, 2006, when it averaged 6.43 percent.
The average for the 15-year FRM this week is 6.14 percent, with an average 0.4 point, down from last week when it averaged 6.18 percent. A year ago, the 15-year FRM averaged 5.32 percent. This is the lowest the 15-year FRM has been since the week ending April 6, when it was 6.10 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) fell to 6.11 percent this week, with an average 0.5 point, down from last week's rate of 6.14 percent. A year ago, the five-year ARM averaged 5.30 percent. This is the lowest the five-year ARM has been since March 30, 2006, when it was 6.02 percent.
One-year Treasury-indexed ARMs averaged 5.59 percent this week, with an average 0.7 point, was down from last week when it averaged 5.60 percent. At this time last year, the one-year ARM averaged 4.48 percent. This is the lowest the one-year ARM has been since April 6, 2006, when it was 5.57 percent.
"Mortgage rates continued to drift lower this week in large part because of the cooling in the housing market and in consumer confidence, thus giving financial markets reason to believe that economic growth will moderate and inflation will remain in check," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a matter of fact, the 30-year FRM is nearly 40 basis points lower than its peak of 6.8 percent in July of this year."
"By some indicators, personal incomes are growing faster than the cost of housing. Combined with the still historically low mortgage rates, this will help to support the housing industry as it levels off from the record highs of the last few years."
Published: September 1, 2006 in “Realty Times” newsletter written by Blanche Evans

In Central Ohio the 30 year fixed rate mortgage on September 1st was as low as 6.125%. With prices leveling off and moving slightly lower than last year in some areas of town, now is an excellent time to buy real estate.
Jim Lubinsky
614-766-5330

How long do you expect to Live?

2007-01-23T07:13:00.002-08:00

How Long Do You Expect To Live?

Many of us are wondering about life expectancy especially as it relates to retirement income and savings/pension payments available to sustain us after our working years. There is a new study pondering unknown variables in the mix of determining life expectancy.

New Study Suggests Where You Live, Income Contribute To Lifespanby Blanche Evans
Middle and low income levels across the country are contributing to vastly different life expectancies across racial boundaries, but so is location. What's troubling is that the medical community doesn't know why folks live longer in one part of the country than another, even when they make less money.
According to a new study called the Eight Americas: Investigating Mortality Disparities Across Races, Counties, and Race-Counties in the United States, a joint effort by researchers with the Harvard School of Public Health, Harvard University Initiative for Global Health, Harvard Center for Population and Development Studies, and the University of California, there is a gap between the highest and lowest life expectancies when data from counties and races are combined.
In an attempt to explore the causes of the disparities, the researchers identified eight "Americas," based on race, location of the county of residence, population density, race-specific county-level per capita income, and cumulative homicide rate.
Asian - 10.4 million - average per capita income $21,566, life expectancy 84.9 years
Northland low-income rural white - 3.6 million - $17,758, 79 years
Middle America - 214.0 million, $24,640, 77.9 years
Low-income whites in Appalachia and the Mississippi Valley - 16.6 million - $16,390, 75 years
Western Native American- 1.0 million - $10,029, 72.7 years
Black Middle America - 23.4 million - $15, 412, 72.9 years
Southern low-income rural black - 5.8 million - $10,463, 71.2 years
High-risk urban black - 7.5 million - $14,800, 71.1 years
Published in Realty Times September 14, 2006
Edited by: Jim Lubinsky
Read the entire article at
http://realtytimes.com/rtapages/20060914_lifespanincome.htm

Home Sales...Improving or getting worse?

2007-01-23T07:13:00.001-08:00

Home Sales – Improving or Getting Worse?

The Columbus Board of Realtors MLS statistics show that as of August 31, 2006, the number of single family homes sold is just about 4.2% lower than in 2005. However, if you follow trends, the number of homes sold in August 2006 was 12% lower than in August of 2005 and July 2006 was 18% lower than July 2005. Seems the Federal Reserve, the national interest rate controlling body, is showing some concern for the slowing performance.

Read on -

Fed Lower Rates In The Future?by Blanche Evans
We've been telling you at Realty Times that the housing slowdown wouldn't last long, and now optimism is to the point that some economists are starting to wonder if the Federal Reserve will start to lower short-term interest rates in 2007 in order to reignite home sales.
They're already betting that the Fed will leave rates alone this week when the policy makers meet this Wednesday.
But some are keeping their eyes on foreclosures -- one of the first signals that housing is not recovering.
"To this point, generally healthy economic growth and labor markets have kept delinquency rates from rising," explains Doug Duncan, chief economist for The Mortgage Bankers Association. "Going forward we expect some further slowing in the economy and the housing market. As a result, we will see modest increases in delinquency and foreclosure rates in the quarters ahead."
This could encourage the Federal Reserve to lower short-term rates instead of raising them.
Says David Lereah, chief economist for the National Association of Realtors, "Mortgage rates are one of the bright spots in the economy right now, with an unexpected decline recently in the 30-year fixed rate to a narrow range around six-and-a-half percent. This should encourage some of the nearly 4 million people who’ve found newly created jobs over the last two years.”
Published in Realty Times September 18, 2006
Edited by: Jim Lubinsky
Read the entire article at
http://realtytimes.com/rtapages/20060918_lowerrates.htm

Waiting till Spring to buy a Home? It may cost you BIG

2007-01-23T07:12:00.000-08:00

WAITING TILL SPRING TO BUY A HOME?
IT MAY COST YOU BIG!

No one has ever said to me
“I’m glad I waited another year to buy a home”.

Many homeowners have said to me
“I never should have waited another year, I am further behind now in what I can afford”.

Right now interest rates are falling as the volume of new loans flattens. We have lenders quoting 5.875% and 5.99% on 30 year fixed rate loans. That’s the lowest so far this year.

What will spring bring us? Normally loan interest rates and home prices increase every spring. Early this year we saw interest rates as high as 7%. Many experts anticipate seeing similar levels next year.

What does that mean to you in real dollars? If loan rates increase by 1% and you borrow $150,000, your payment will increase by $97.50 monthly or $1,170 annually. If you own your home for 10 years, that’s $11,700 more cost for that home. At $200,000 the cost is $15,600 and at $300,000 the cost is $23,400 higher.

Add to this a price rise, which normally occurs each new year, of 3-4% and you would be paying an additional $35 per month on a $200,000 purchase and you would pay $53 per month more at $300,000.

The total impact of a 1% rise in mortgage interest rates combined with a 3% rise in purchase price would mean you are paying $169 per month more on a $200,000 purchase and $254 per month more at $300,000. Over a 10 year period you pay $20,280 more on a $200,000 purchase and $30,480 more at $300,00 over a 10 year period.

Consider buying now!!

2006 Income Tax Credits

2007-01-23T07:11:00.002-08:00

2006 Income Tax Credits

If you replace or install new items in your home during 2006 you may qualify for an IRS credit for a portion of the cost of those items. Here is part of IRS bulletin 505 regarding energy property credit.
If you have questions or need more help with this, call me for the name of a qualified professional tax CPA person to help you.
IRS bulletin 505 excerpt
Nonbusiness energy property credit. You may be able to take a credit equal to (a) 10% of the amount paid in 2006 for qualified energy efficiency improvements installed during 2006, plus (b) any residential energy property costs paid in 2006. However, this credit is limited as follows.
· A total accumulated credit limit of $500 for all tax years.
· A maximum accumulated credit limit of $200 for windows for all tax years.
· A maximum credit for residential energy property costs of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property.
Qualified energy efficiency improvements. Qualified energy efficiency improvements are the following items installed on or in your main home located in the United States if such items are new and can be expected to remain in use for at least 5 years.
· Any insulation material or system that is specifically or primarily designed to reduce the heat loss or gain of a home when installed in or on such home.
· Exterior windows (including skylights).
· Exterior doors.
· Any metal roof installed on a home, but only if such roof has appropriate pigmented coatings specifically and primarily designed to reduce the heat gain of such home.
To qualify for the credit, qualified energy efficiency improvements must meet certain energy efficiency requirements. Residential energy property costs. Residential energy property costs are costs of new qualified energy property that is installed on or in connection with your main home located in the United States. This includes labor costs properly allocable to the onsite preparation, assembly, or original installation of the property. Qualified energy property is any of the following.
· Certain electric heat pump water heaters; electric heat pumps; geothermal heat pumps; central air conditioners; and natural gas, propane, or oil water heaters.
· Qualified natural gas, propane, or oil furnace or hot water boilers.
· Certain advanced main air circulating fans used in a natural gas, propane, or oil furnace.
To qualify for the credit, qualified energy property must meet certain performance and quality standards

Remodeling Tips

2007-01-23T07:11:00.001-08:00

Remodeling Tips for Your Clientsby Mark Nash
Pickled oak floor and cabinet finishes, whirlpool bathtubs and indoor-outdoor carpeting were once the rage. Trends come, trends go, but careful planning by home sellers when remodeling today can save them time and frustration when it comes time to market their home. Here are some tips to pass on to your clients if they are thinking about remodeling.
· Choose light to medium stain colors when refinishing or installing hardwood floors. Black might be in, but is expensive to lighten later.
· Dated ceramic tile and bathroom fixtures need more than today's paint colors and new bath rugs in buyers eyes.
· Choose wall colors that let home buyers overlay their style. Strong commitment colors can block buyers from seeing themselves in your space.
· Parquet and laminate floors might be a quick fix, but you'll pay later with low buyer perceptions of these products.
· Granite countertops on 1980's oak cabinets with new hardware are a sure sign of a quick but incomplete update to buyers.
· Remember to size walls before applying wallpaper, so it is easier to remove. Home buyers stay away from homes that have any more than one room of wallpaper. Ditto on wallpaper borders.
· Think twice before converting third or fourth bedroom to a master bath. The majority of home buyers would rather have the flexibility of an extra room.
· Install new kitchen cabinets to the ceiling, today's buyers want the utility of the extra storage 42" cabinets provide.
· Buyers choose homes with first floor family rooms over basement recreation rooms. Compare costs of adding on to the first floor versus building out basement space.
· Include generous walk-in closets, pantries and laundries near bedrooms. Buyers will walk away from a home that can't handle their belongings.
· Consider that buyers will see your in-ground swimming pool as a negative in cold climates.
· Kitchen back splash and wall to wall ceiling mirrors are number one on the buyer hate parade!
· Keep finishes and proportions of new rooms similar to existing spaces. The huge new living room with crown molding next to the old galley kitchen with metal cabinets screams poor remodeling planning.
· Spiral staircases might solve space limitations; most buyers will stay away from a home with one, or discount your price to add a full-size staircase.
· Textured walls and popcorn ceilings are a common turn-off for buyers.
· Remember to add sufficient heat and air-conditioning when remodeling. After thought baseboard heating and the only window air-conditioner in a centrally air-conditioned home denotes poor planning.
Published: May 9, 2006
Jim Lubinsky
Re/Max Affiliates

Investment or Vacation Home?

2007-01-23T07:10:00.000-08:00

CONSIDERING INVESMENT OR VACATION PROPERTY?
SOME INSIGHTS FROM NAR STUDY
Observes David Lereah, NAR's chief economist, "Boomers believe in diversifying their assets, and most second-home owners see their purchase as being a better investment than stocks. A surprising majority of survey respondents hold multiple properties, and they are interested in purchasing additional homes."
While the U.S. Census Bureau data shows there are 6.8 million vacation homes in the United States and 37.4 million investment units in addition to 74.6 million owner-occupied units, the line appears to be blurring between how owners define themselves:
Twenty-one percent of vacation-home owners own two or more vacation homes. In addition, 34 percent of vacation-home owners report they own two or more investment properties. Lifestyle figures prominently in their choices with half of vacation homes located in resort areas near water or sports features. Distance is about 220 miles; most owners say they drive to their vacation homes. Most homes were in the $300,000 range, less than the value of their primary residence.
More than half of investment property owners, 53 percent, own two or more investment homes and 12 percent own two or more vacation homes.
Financial gain is the motivator, with most rental properties chosen to generate income and within easy access -- 10 miles. Most homes were in the $200,000 range, lower than the investor's primary residence.

Read the full article at http://realtytimes.com/rtapages/20060515_surveysecondhomes.htm

Before you decide to buy another property, give me a call to discuss options and strategies and to find a good agent in another city.

Are you Overpaying your Property Tax?

2007-01-23T07:09:00.002-08:00

ARE YOU OVERPAYING YOUR PROPERTY TAX?

READ MORE ABOUT 2 WAYS TO REDUCE YOUR TAXES

Another new and interesting website is ZILLOW.COM promising to help you determine the value of your or someone else’s house. The format is very user friendly and the reports very graphic in nature, giving this site some real potential credence.

On the downside, so far in Central Ohio, the data is limited and dated. For example, my home in Delaware County reflects the 2004 tax assessed value rather than the new valuations as adjusted last December. Last sale date and sold price are “not available”. Franklin County is much more comprehensive and actually prepares an estimate of the value of the property.

In locations where the data is current and more comprehensive, like Franklin County, the program cannot account for such important issues as “location”, for example facing a busy highway vs. backing to a wooded reserve. There is no adjustment for updates or condition of the property.

If you desire to compare tax assessed values in a neighborhood this is one of the best websites to see immediate data on a mapped format for instant comparison.

What would you do with this? Well if you found your own property valued significantly different from other similar properties, you might file a complaint (yours valued much higher) or you might quietly rejoice (yours valued well below the others). This valuation determines the amount of your annual property taxes. ZILLOW is not yet update

If you ZILLOW your property and have questions about its valuation and you would like a professional opinion or want to know how to get the value adjusted, give me a call or email to enlist my expertise in filing for a tax reduction.

To read a full article about ZILLOW visit:

http://realtytimes.com/rtapages/20060302_zillow.htm

Also, keep in mind, if you, or someone you know, is 65 years or older and have annual income below $26,201, you or they may qualify for a homestead exemption under Ohio law, resulting in reduced property taxes.

For more on Homestead exemptions visit:

http://www.co.franklin.oh.us/auditor/forms/dte_105a.pdf

Safety At Home

2007-01-23T07:09:00.001-08:00

Safety At Home

Megan’s Law

As most people now know, there is a law requiring those convicted of sexual offenses to register with sheriff’s office of the county in which they reside. The intent is to keep us safe from future harm, especially to protect children from those convicted of sexual offenses against children.

Having 5 grandchildren now, our family is sensitive to this issue.

You can check with your local sheriff office for the location of offenders. There are also several good websites listing offenders by area of residence and some showing the offender’s location of employment as well. You can register with these websites to receive notices by email when an offender moves into the area.

Websites to visit to get more information and to locate offenders:

http://www.familywatchdog.us/

http://www.esorn.ag.state.oh.us/Secured/p1.aspx

http://www.sexcriminals.com/registration-notification/us/ohio/

Many years ago we often knew all our neighbors and their background. With the new more mobile society and more densely populated areas, it is often more difficult to build the same familiarization. This technology now helps make your life safer by providing information that otherwise might be difficult to obtain..

Using Natural Pesticides

2007-01-23T07:08:00.002-08:00

Using Natural Pesticidesby Carla L. Davis
Early harvests are already coming out of some gardens. But as the summer heats up and the bugs return and hatch -- many homeowners will be left fighting a never ending battle for the fruits of their labor. Literally.
While many pests simply can't be eradicated without special chemicals, the majority of them -- think aphids, caterpillars, slugs, and mites -- can be easily removed with homemade remedies that don't harm you or your food.
And while there are store bought products that boast themselves as all natural, studies have indicated that these "all natural" products still have cancer causing agents. One such study by University of California scientist Bruce Ames showed that of the 52 "all natural" pesticides used on foods today, 27 caused cancer. Yikes.
But you don't have to rely on these products, you can simply mix up some cheap versions on your own:
Aphids: A tried and true homemade method for relieving your plants and flowers of these pests is mixing dishwashing soap in a spray bottle with water. Simply spray the leaves and stem of the infected plant. You may need to repeat this in days to come, but the aphids will more than likely move on.
This method also works on slugs.
Mites: Spray with a mixture of water and salt.
Caterpillars: Mix up a strong solution of chili powder and water and spray on the areas.
Microscopic Pests: Viruses can attack our plants -- and the usually are made manifest though wilting leaves, spotted leaves, dried stems, or diseased, shrunken looking root structures. Some experts recommend that dried milk dissolved in water and sprayed on the infected leaves can rid the plant of a virus, though many times it many make more sense to destroy the plant in hopes that the disease will not spread to others. Use caution, though, as the virus could spread from your hands to a healthy plant.
For fungal control, try the dried milk solution above or a strong mixture of soaked garlic, mineral oil, water, and soft soap. Use this the same way as the other herbal sprays.
Ants: Place a sprinkling a chili powder in the ants path. They'll rethink going into you garden!
Using the Food Chain:
Lady bugs deter/feed on aphids, scales, and mites.
Praying mantis eats all sorts of insects.
Don't let them scare you: spiders, parasitic wasps, and bees are all part of a healthy food chain that can eliminate unwanted insects.
Some popular gardening sites note the importance of the green lacewing, which feeds on such insects as mites and aphids.
Whatever your garden, a balance between mayhem and harvest can be attained. Do a little research as to what bugs are native to your area and how to identify them when they attack your prized vegetables. And then breathe a sigh of relief as you serve up a summer's worth of organic treats!
Published: May 31, 2006

Writing an Offer

2007-01-23T07:08:00.001-08:00

Writing an Offer - Safeguards Regarding the Property
Disclosures From the Seller
Although you have toured the property, looked at the walls and ceiling, turned on the faucets and played with the light switches, you have not lived in it. The seller has years of knowledge about his or her home and there may be some things you want to find out about as quickly as possible. For this reason, you will require certain disclosures as part of your offer.
Basically, you want the seller to disclose any adverse conditions that may have a substantial impact on your decision to purchase the home. This would include any problems with the house, whether the property is in a flood zone, a noise zone, or if hazardous materials or conditions exist in the home..
In Ohio, the current law states that the seller must provide the buyer with a completed “Ohio Residential Property Disclosure” form prior to entering into a purchase contract. If the written disclosure is not provided prior to an executed purchase contract, the buyer may cancel the contract within 3 days following receipt of such disclosure or cancel within the first 30 days if a disclosure is not received.
Ohio law excludes newly constructed homes sold directly by a builder. You may still have the right to receive disclosure information from the builder. Also, all newly constructed condominiums require a “developer’s statement” be provided to the buyer 24 hours prior to executing a purchase contract.
The Lubinsky team works to ensure that all proper forms and completed and signed by all parties so that the buyers are fully informed and the sellers are protected from failure to follow the laws.

Too many Big Homes?

2007-01-23T07:07:00.001-08:00

TOO MANY BIG HOMES?

Will Big Homes Be Difficult To Sell In The Future?

Surprising no one, the U.S. Census department has found that new homes today are "substantially larger and packed with more amenities than their predecessors of 30 years ago."

Despite the reluctance to think small, the National Association of HomeBuilders predicts that the average new home in 2010 will be 2200 square feet, not the record-breaking 2,434 square feet of 2005.

In 2005, the average floor area in a new home reached an all-time high of 2,434 square feet -- up from an average 2,349 square feet in 2004 and just 1,645 square feet in 1975. The Northeast had the largest average new-home size for any region last year, at 2,556 square feet. New homes in the Midwest had the smallest square footage, with an average of 2,310 square feet.

Read this entire article at:

http://realtytimes.com/rtapages/20060619_downsizinghomes.htm

Lowering your Property Taxes!!

2007-01-23T07:06:00.002-08:00

PROPERTY TAXES
Lowering Your Property Taxes!!

Did you know: every 3 years in Ohio the county auditor revalues all real estate parcels. That was done last in late 2005. Many parcels were valued based on the previous (historical) real estate market. Some are now OVER VALUED for tax purposes. You have until March 31, 2007 to file a complaint to lower the tax appraised value and thus lower your property taxes.

If you are 65 years or older, you may qualify for the “homestead exemption” which lowers your property taxes. There are income limits to qualify.

When buying or selling real estate, the valuation can be challenged when the sale price differs from the tax appraised value. In most cases, the schools will challenge the valuation as being too low. When a new valuation is applied, the challenging school has the right to ask for payment based on the increase amount RETROACTIVELY for the prior year. In other words, the buyer could be asked to reimburse the county/school for the increased property tax amount for the year prior to acquiring the property. In Central Ohio this has not been pursued for single family residence property, but is normally done on all other property. Buyers / sellers may need to have a provision to adjust the tax pro ration for this possibility, which occurs after the closing.

If you have questions on property taxes or related real estate issues, call or email me.

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

Is The Real Estate Market Headed for a Crash?

2007-01-23T07:06:00.001-08:00

Is The Real Estate Market Headed for a Crash?
The Truth Unveiled

The NAR (National Association of Realtors) recently published information from its national research statistics on housing inventory. To read the related article go to:

http://www.realtor.org/reioutlook.nsf/pages/regionalperspectives?opendocument

Ok, everyone has an opinion on this so now here is mine, along with some facts.

In the Columbus area market, based on information from the Columbus Board of Realtors multiple listing system (CBR MLS), which now has 7,000 member agents and serves an 8 county area, as of January 24, 2006 there were 11,944 single family homes actively for sale in the MLS with an average of 115 days on market.

The number of homes for sale and the days on market are higher than past years. During the winter months of 2004-5 the number never went below 10,000 homes for sale. During prior years, the number would be around 7,000 to 8,000. We went into the year 2005 with a larger than prior year’s inventory and climbed during the year to a high of about 13,900 near the end of summer.

Likewise, the “days on market” has, in the few past years, been around 90 to 100. The current 115 average days on market is higher than we have seen in previous years.

The number of sold homes in 2005 was almost identical to 2004 and the beginning of 2006 has mirrored January 2005. Sales are still considered to be strong, however, the growing inventory is making the market more competitive for sellers and giving buyers an opportunity to negotiate more on price than in previous year’s markets.

Advice: If you are selling or considering selling this year, your home needs to be in top condition and priced right – not a bit toward the high end as we often did in past years. Top condition means updating, cleaning, painting etc. If your home is nearing or past 10 years in age, you need to update things like light fixtures, plumbing fixtures, counter tops, flooring, etc to be competitive. ( check out my upcoming program “Top 10 home improvements to increase the value of your home” offered through Westerville Parks and Recreation at: http://www.westerville.org/pdf/parks/parksbrochure.pdf see page 49).

There are still many buyers, interest rates are still below 6% in most cases and the buying market is still healthy in Central Ohio.

For more information or to discuss buying or selling property, give me a call at 614-766-5330 x119

NAR's Optimism Over Housing Outlook Grows 2007

2007-01-23T07:05:00.000-08:00

NAR's Optimism Over Housing Outlook Growsby Blanche Evans
The chorus is growing in the chant that housing has struck bottom and will slowly rise again. A new report by the National Association of Realtors suggests rising existing home sales through 2007 and 2008 and a turn-around for new home starts by summer 2007, but homes won't appreciate over inflation rates for the first time in decades. And that's a little scary
Read the entire article at:
http://realtytimes.com/rtapages/20070111_housingoutlook.htm

Here are the statistics for the Central Ohio Real Estate market comparing 2006 to 2005. Similar to the national averages referred to in the article referenced below, Central Ohio experienced some slowness in 2006 and the inventory somewhat large reflecting nearly a 7 month inventory at 2006 sales levels.

Single Family Home Sales – per Columbus Board of Realtors MLS data
As of January 11, 2007

Number Sold Days on Market Average Sale Price

2005 23,838 86 $187,736

2006 22,473 95 $185,209

2005 12,469 84 $182,624
July-Dec

2006 11,017 96 $185,439
July-Dec

Current 12,843 128 $220,723
Active listings

Average days on market for current active listings of 128 reflects the compounding of cyclical and seasonal slowdowns. We have seen Central Ohio continually perform more consistently than the national average. We don’t see the dramatic swings in values nor in number of homes sold that other parts of the country experience. Many of us are anticipating 2007 to be a good year, moving us back on track for a solid next 5 years of real estate performance in Central Ohio.

Mortgage Insurance slated for Tax Deduction

2007-01-23T07:04:00.000-08:00

Home Buyer Looses $22,262

Waits 1 Year Before Buying

The cost of postponing your home purchase may be greater than you ever imagined. Here is an example of the impact of delaying your purchase 1 year.

Interest rates are now 1% higher than they were this time last year and expected to rise even more in the next 12 months. The cost of a 1% interest rate increase on a $150,000 loan over the next 7 years (average home ownership period) is $12,600. Remember the higher interest rate stays high through the life of the loan. So every year you own is costing you more than it would by buying during a time of lower interest rates.

Annual appreciation of home prices in the Central Ohio market area has been 4%. A $150,000 home will rise $6,000 in 1 year. New home construction is rising at 8-10% annually. The cost of a 1 year delay could easily exceed $10,000 on the purchase price.

By renting for 1 more year, the money that would go toward lowering the loan balance is lost. A homeowner would realize a loan balance reduction of $1,800 in 1 year on a 30 year $150,000 loan. Renters realize no such equity building.

Finally, the federal income tax savings lost over a 1 year period while renting would equal about $1,862. That is the tax savings from the added deduction of loan interest and property tax, after removing the standard deduction from the equation.

So waiting 1 more year could easily cost you over $20,000 over a 7 year period of ownership. Even if your monthly payment for owning a home is greater than your monthly rent, you need to consider the long term impact of renting vs. owning your home. The savings and potential to accumulate wealth when owning a home is worth much more than you might have realized.

If you or someone you know is contemplating a home purchase, but thinking of waiting another year, you need to encourage them to move now while interest rates are still low. Give me a call to help get started today.

Should I wait 1 year before buying?

2007-01-23T07:03:00.000-08:00

What is coming for the REal Estate Market for 2007?

2007-01-23T07:02:00.001-08:00

WHAT IS COMING FOR THE REAL ESTATE MARKET IN ’07 ?

Most of us are wondering what is coming for 2007 in the real estate market. My team has several clients ready to begin their buying / selling process this spring. That is a good sign for real estate. How long will the spring moving push last and how strong will it be?

Below is a link to an article exploring market impacts and expectations. Very interesting reading. Remember though the author’s insights relate to our country wide market. Experience has shown that the Columbus real estate market often performs better than the national market. That is, when the national market is depressed, our market remains solid. When the national market is strong, Columbus can be more robust. We don’t see extreme swings in value / appreciation / price changes, but we do see a consistent steady growth.

You can be sure that this time next year I can tell you exactly what the 2007 Columbus market has done. Till then, forecasting is an enjoyable past time.

What Will FED's Decision To Leave Rates Alone Do To Housing?by Blanche Evans
If homebuyers are hoping for another interest rate windfall before they step in to relieve swollen inventories of new and existing homes, they may be waiting too long.

Read the entire article at:
http://realtytimes.com/rtapages/20061218_fedrates.htm

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119

Forcast for 2007

2007-01-23T07:01:00.002-08:00

Which Economic Signals Impact Real Estate Sales The Most?by Blanche Evans
As homebuyers and real estate industry professionals look for an economic beacon to follow in order to avoid crashing on the rocks, Realty Times finds itself inundated with forecasting requests.
That begs the question -- which economic signals are worth paying attention to?
Excerpted from an Article in Realty Times December 28, 2006.

In the article, Blanche talks about a favorable forecast in 2007 for housing sales based on the National Association of Realtors economic forecasts. It is expected that home sales will increase 5% over 2006, nationally.

It has been our experience locally that the Columbus market fairs better than the national average. With that in mind, we could see a healthy recovery of housing sales in 2007.

Read Blanche’s entire forecast article at:
http://realtytimes.com/rtapages/20061228_econsignals.htm

What if You are the ONLY Condo buyer?

2007-01-23T07:01:00.001-08:00

Housing Counsel: What if You Are the Only Condo Buyer?by Benny L. Kass
Question: What happens to a person's investment if someone buys one of the first units in a condominium, and the project goes bankrupt, before a significant number have been sold? Could you possibly lose all you invested. This is a concern for people who are retired and can't afford to lose such a significant sum.
To read this article in its entirety go to:

http://realtytimes.com/rtcpages/20061023_onlybuyer.htm

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119
Columbus-Ohio-Condominium.com

Considering a Nice WOOD Laminate floor? Think Again

2007-01-23T07:00:00.000-08:00

Considering a nice wood-look laminate floor?
Think Again!!

The following article appeared December 7, 2005 in Realty Times, Blanche Evans, Editor

What's In, What's Out with Homebuyers in 2006by Mark Nash
Chicago, IL November 30, 2005 -- The majority of full-time real estate agents hear a lot of feedback every day all year from homebuyers as they visit potential resale and new construction homes. They wonder why builders, developers and home-sellers add finishes or upgrades that say "cheap" or "soon-to-be-out-of-date," in addition to owners who think the laminate wood-grained kitchen cabinets look fine.
Old stand-bys like solid oak hardwood floors might not be on the design edge, but quality and durability out sell trendy any day in residential real estate. After a year of property showings in 2005 and eight previous years with homebuyers as well as requests from consumers after the review of "1001 Tips for Buying and Selling a Home" in The New York Times I've complied a list of home runs and strike-outs for those looking to sell to homebuyers in 2006.
On the Way Out
· Stainless steel appliances. Word-of-mouth says the cleaning requirements aren't for everyone.
· Laminate flooring that looks like hardwood. Not only can buyers tell it's not wood, the noise it makes with high-heel shoes is the deal killer during property showings.

What's In
Smaller square footage homes. After years of sprawl, new construction buyers want less space with better finishes.
Quality kitchen cabinets. With the kitchen/great room the center of family living, buyers today are looking at furniture style cabinets.
Bamboo wood floors. It could over-take maple as the favorite light-colored wood flooring in 2006.
Wall space for flat screen TV's. Specify power and cable boxes close to locations where homebuyers want to place the latest in visual technology. The popular location for installation in new construction is over the fireplace.
Multiple and high-powered phone lines. With modems, DSL, wi-fi moving into mainstream use, tech-savvy homebuyers want "wired" homes.
Separate shower stalls and bathtubs in master bathrooms. The growing divide among "soakers" and "showerers" is increasing. Not having one of each in a master bath could squelch a purchase.
Built-in home stereo systems are a must-have for many audiophiles. Wireless hasn't quite made the pre-wired audio system home obsolete, at least not in 2006.
Balconies and decks wider than 3 feet. Homebuyers want usable outdoor space. Big enough for a bistro table and chairs and a couple of pots for container gardening.
Guest parking. With the rise in condominiums, lofts and zero-lot line subdivisions, homebuyers want their guests to have a hassle-free experience when they arrive at their new home. Buy or lease an extra space for family or friends.
Dog Parks. Dogs and homeownership go hand-in-hand. The new way to meet neighbors in the hood is to interact with them at the dog park. Before buying a home, check out the nearest one.
Ranch or one level homes. The baby-boomers are discovering their utility in droves.
Second Homes. The baby-boomers are also keeping this market segment strong. Demand for second homes was still on the upside in 2005, but if primary home demand weakens, the second home market will historically follow.
Seller give-backs. With a more balanced market in most metro markets, requests by buyers to pay closing costs have increased, and some sellers are paying them.
Carbon Monoxide detectors. Home inspectors red flag homes that have only smoke detectors. Inexpensive and life-saving, install one on every floor of a home before opening to homebuyers.
What's Out
The real estate bubble. It's a correction with a soft decline in prices.
Ebony-stained hardwood floors. You're better off tearing it out than trying to sand the ebony out to refinish.
Single-rod closets. Buyers want the most storage in the least amount of space. Organizers accomplish this.
Dark rooms with small windows. Natural light can over-rule a lot of other problems in a home.
Wallpaper. Buyers never have the same taste as decorators. Take it down (carefully) and paint.
Builder grade light fixtures and interior fixtures used outside. The right fixtures say quality to buyers.
Mid-century awnings on exterior windows and doors. Buyers want to let the sun shine in.
Mirrored backsplash's in kitchens and everywhere else. Mirrored walls and ceilings say 1980's hedonism.
Commitment (strong, bold trendy) colors. They look great in magazines, but as one buyer said to me "I don't live in a magazine."
Gas grills that need their own tank. Buyers prefer the gas piped from the house so they don't have to replace tanks.
Dropped ceilings. It might have updated a bungalow in the 1950's, but buyers want as much vertical space as possible. Flipping. Increasing inventories of unsold homes is increasing, signaling weakening demand by all buyers. If you are holding properties to flip, prepare to place them on market after the holidays

BEWARE of Zillow.com

2007-01-23T06:59:00.002-08:00

Beware - Zillow.com
A Help or a Problem?

In a previous TIPS article we spoke about Zillow.com and advised you to take it lightly due to lack of accuracy. Zillow.com is an on-line web based program that allegedly gives you the market value of a desired property along with the market value of surrounding properties. We warned that the basic calculation process ie the tax appraised value, is not an accurate depiction of true market value.

In the real world, if you have 3 real estate professionals or 3 appraisers determine the market value of a property, the answers should be reasonably close. The calculation of market value involves many facets. In reality, Zillow.com uses a very limited source of information to calculate market value. The problem that Zillow.com now faces results from an accusation that too many people have begun relying on Zillow.com as an accurate source for determining market value. Zillow.com spokespersons told BusinessWeek back in February, 2006 when the site launched -- that "estimates are typically on target, falling within 10 percent of the actual home-sale prices 62 percent of the time." Seems though that Zillow.com left that 62% of the time off its website. That means incorrect by more than 10% at least 1/3 of the time. No disclaimers are used on the site.

To read a full story of details, in which National Community Reinvestment Coalition (NCRC) is requesting the Federal Trade Commission take action against Zillow.com and that it do so in the heals of Zillow.com announcing a major expansion to making its data available to partners such as Yahoo, read the article by Columnist Blanche Evans as sit appeared in Realty Times newsletter October 27, 2006.

http://realtytimes.com/rtapages/20061027_zillowftc.htm

Jim Lubinsky
Re/Max Affiliates
614-766-5330
jimlubinsky.com

Home Sellers Guide

2007-01-23T06:59:00.001-08:00

The HomeSeller's Guide To Tax Savings Comes Just At The Right Timeby Blanche Evans
Book review:
Julian Block, a nationally recognized attorney, syndicated columnist and former IRS special agent (criminal investigator) has written an accomplished guide for sellers on how to lower their taxes.
The Home Seller's Guide To Tax Savings: Simple Ways For Any Seller To Lower Taxes To The Legal Minimum, written and self-published by Block in conjunction with the Westchester Board of Realtors, is a new edition that incorporates law changes introduced by the 2006 tax act that took effect this past May.
Editor's note: To order a copy, send $19.95 for a postpaid copy to J. Block, 3 Washington Sq., #1-G, Larchmont, NY 10538 or go his website, julianblocktaxexpert.com.
See the entire article at: http://realtytimes.com/rtapages/20060710_taxguide.htm

Jim Lubinsky
Re/Max Affiliates
614-766-5330

Identity Theft

2007-01-23T06:58:00.002-08:00

IDENTITY THEFT

HOW BIG IS THE PROBLEM?

Is it a large problem? The National Criminal Justice Reference Service reported that in 2004, 3.6 million households, representing 3 percent of the households in the United States, discovered that at least one member of the household had been the victim of identity theft during the previous six months. Two-thirds of those households lost money due to the theft at an average loss of $1,290.
This problem's not going away. And as I found, it will probably follow me the rest of my life. In talking these issues over with a fraud representative from one of my credit card companies, he said, "Once you take care of it, they'll stop for a while, then just wait. About a year later, you'll start seeing credit issues again." And that's about how long it took.
For a detailed step-by-step approach to understanding how ID theft happens and what you can do to protect yourself, let me refer you to the Federal Trade Commission's webpage on this crime.
Here, you'll find a complete guide on how ID Theft happens, and also what to do if you find yourself the victim of ID Theft, including worksheets, phone numbers of the credit bureaus, etc.
Source:

Ensure Smooth Transaction by Protecting Your Credit Identityby M. Anthony Carr July 14, 2006 see: http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm for the full article

Jim Lubinsky
Re/Max Affiliates
614-766-5330

10 Ways to make Your Home more Salable

2007-01-23T06:58:00.001-08:00

10 Ways To Make Your Home More Salable by Peter G. Miller
There's little doubt that the real estate marketplace is now in transition. Sale volume has begun to weaken and in many markets the days of quick sales and multiple offers are going or gone.
"The cooling from overheated sales conditions in recent months is helping to bring inventory levels up to the point where buyers have more choices than they've seen in the last five years," says David Lereah, NAR's chief economist. "Annual price appreciation is still running at double-digit rates, but the cause of those sharp increases is going away. As the market readjusts, price appreciation should return to more normal rates of growth this year."
Translation: Homes are not selling as quickly as before -- that's good news for buyers. Sharp increases in value are moderating -- that's also good for buyers. Values are not falling -- that's great news for sellers.
Meanwhile, the National Association of Home Builders says that permits for new construction for February fell by 3 percent when compared with a year earlier.
Neither the existing nor new home unit declines should trouble anyone. These changes follow record year after record year, a pace that's not sustainable. The good news is that the changes are modest rather than manic.
The catch is that a softer marketplace means sellers will have to fight harder to get top prices and quick sales. Here are 10 ways to get more out of your local marketplace.
Go for the junk -- and get rid of it. A house with less stuff looks bigger and roomier. If what you want to throw out can have value to others, see if you can help by donating goods to local charities.
Price within reason. Trying to sell a home for $700,000 when like homes go for $525,000 is a non-starter. The days of "testing" the market with huge price increases is finished in many areas. Overprice and you won't be competitive.
Use the best local broker you can find. Experience, connections and reputation can be a real edge when marketing a property.
Require your broker to have a marketing plan that makes sense for you and your property. The technique that sells one property may not be appropriate for another, so find the approach that's right for you.
If the home doesn't sell within a reasonable time period, think about changing the deal rather than lowering the price. In other words, rather than cutting the price from $500,000 to $480,000, instead keep the $500,000 price and offer a 2 percent "seller contribution" to help a buyer pay for closing costs. This approach is cheaper ($10,000 in closing cost help rather than a $20,000 price reduction) plus it gets to the real need of many buyers, closing assistance.
Have a home equity line of credit in place -- even if you don't expect to sell for several years. This way you can have funds available if you want to buy a replacement home while the current property is being sold. Just be aware of the risk -- if your current home does not sell in a reasonable period you could face lots of mortgage payments.
Make sure everything works -- and nothing leaks. Expect buyers to ask for a home inspection and be prepared to make reasonable repairs if requested. Remember that it may be better to upgrade an electrical service box than to look for a new buyer.
Find out what buyers thought after a showing or open house. Don't take negative comments personally. Look for ideas that can help you make a better impression with the next prospect.
Beware of buyers who want you to take back financing. At a time when loans with little or nothing down are available from every lender, don't go into the banking business and take back a loan when there is less risk to you with an outright sale.
Don't get upset with small inconveniences. If a prospect wants to see a home with little notice or at an odd hour, don't worry about it. It's better to show the property than to have a home which is both undisturbed and unsold.

Email Fraud

2007-01-23T06:57:00.001-08:00

What Is Your Bank Doing Now?

Fraud Schemes Continue To Proliferate

Be wary of requests for information about your bank accounts or credit/debit cards.

Latest schemes include sending you an “Urgent” email request indicating that your account is about to be closed or has been breached or has had fraudulent activity or is about to be placed on hold.

The request is for you to take some action, sometimes as simple as “clicking” on an icon or statement to reactivate your account or keep it from being placed on hold.

We recently received such notice and contacted Chase Bank where we were told that the bank is aware of fraudulent emails and is taking steps to track down the responsible parties.

Delete these requests from your email. If in doubt, call your bank and ask if they sent such notice to you.

Jim Lubinsky
Your Realtor for Life
Re/Max Affiliates
614-766-5330 ext 119

Crime Rates are Rising!

2007-01-23T06:56:00.002-08:00

Crime Rates Are Rising !
How Does Your Neighborhood Compare?

Recently I was asked by a relocating family, “What is the crime rate in AAAAAAA? This is a major concern for most people in choosing a new location for their home. Crime definitely impacts the value of surrounding real estate.

Crime statistics are now gathered on local levels and reported to federal agencies. These agencies compile reports and provide the information to certain third party groups offering summaries by zip code area through my website.

To find out the numbers and types of crimes in any area you only need to visit www.jimlubinsky.com and click on “Area Demographics”. Enter your city name and select the zip code you want to know more about. Note that most of Franklin County will be found in “Columbus” as the city. Then enter the desired zip code.

The crime number shown on the graph is not a pure count of occurrences, but rather a relative indicator of crime compared to the country average. A number of 70 means that crime occurrence is 70% as likely as the national average.

For example, total crime in 43035, which is Lewis Center, is 29 vs. 100 for the national average. Lewis Center experiences significantly less total crime than the national average.

There are many other interesting and valuable items of information on my website for you to explore. For more details about the value of your property and the trends in values, contact me directly at 614-766-5330 ext 119 or jim@jimlubinsky.com

Buying a Home While Selling Another

2007-01-23T06:56:00.001-08:00

Buying A Home While Selling Another

This balancing act requires professional assistance. There are several options to choose, depending on your financial situation and your tolerance for risk. There is no single right choice for all people.

Of course the best situation is being able to sell your current home simultaneously with buying your next home. This does happen and your chances to do so can be increased using by using the right approach. The following explains briefly the different options available to you.

You could put your next home into contract contingent upon selling your current home. The risk is your current home does not sell soon enough and you loose the home you wanted. Also, many sellers will not accept this type of contract offer. Lastly, your negotiating leverage is greatly diminished as you are asking the seller to take a risk that your home might not sell within that sellers’ desired time period.

Another choice is to buy your next home before your current home is sold. Many people prefer doing this to minimize their stress of moving and the burden of showing their home while living in it. They buy first, move to the next home, then put their current home for sale. You need to have the ability to carry the loans or to buy for cash without selling to accomplish this option.

The third option is to sell your current home and move the temporary housing while you find your next home. This has the least risk and gives you the position of leverage in negotiating and you know exactly how much money you have from the sale of your current home. Of course it requires some inconvenience, moving twice and living in temporary housing, which may not suit your lifestyle.

An option used by many people and one we have found very successful is to put your home on the market with the intention of accepting an offer “contingent on finding suitable housing”. We start by looking at some homes in your purchase price range to establish that there are several homes that would meet your criteria. Then we put your home on the market and wait for an offer. When you enter into a sale contract, you know exactly how much you will receive from the sale and when the sale will close. Next we begin actively looking at homes to purchase, making the purchase offer only “contingent on closing of sale” of your current home. You make one move, achieve a simultaneous closing and have a choice of any home on the market since all sellers would accept offers “contingent on closing”.

Give me a call to get together and explore the details of each option and explore home available on the market today that fit your price range.

Which REALTOR Do You Choose?

2007-01-23T06:55:00.000-08:00

Which Realtor do you choose?
If you’re like many people, you pick Realtor number three. This is an agent who seems willing to listen to your input and work with you. This is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right? After all, everyone else does it!
The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing." He "bought" the listing by suggesting you might be able to get a higher sales price than the other agents recommended. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price.
Why do agents "buy" listings? There are basically two reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value. On the other hand, there are some agents who engage in this sales practice routinely. They expect listings to bring them buyers (for other properties not your overpriced property) and so they use your listing to generate leads.
By contrast, I will tell you what your property is worth in the marketplace before I ask what you think it is worth. I believe it is better to start off in agreement on a fair price than to overprice a property only to expect to reduce it later. Call me today to schedule a consultation to value your property at 614-766-5330 x119.

Need a Good Contractor?

2007-01-23T06:54:00.002-08:00

Need A Good Contractor?
Our Client Care Program Is Your Answer

Our “Client Care” program has the goal of providing a broader range of services on a regular basis to our client homeowners. It seems that you often have questions like: “what did the house down the street just sell for?” or “where do I go to get new flooring for the home?” or “how can I decide whether to refinance now?”

The answers to these and other real estate related questions is just a phone call away. We have a wealth of resources readily available to help you find a good contractor, get the price on a neighborhood house, make the best decisions on refinancing and more.

Condo association officers have called me asking about the selection and authority of officers or how other associations handle rentals. With over 10 years of condo sales experience, being a condo owner and president of trustees of a condo association, I have access to answer any question.

Remember the next time you have a question involving your home, land or other real estate, just give me a call or email to get quick answers today. Jim Lubinsky 614-766-5330 ext 119 or jim@jimlubinsky.com

Negotiating Skills

2007-01-23T06:54:00.001-08:00

Negotiating Skills Can Earn You Big Money
How to choose a good Realtor

An agent can make or loose money for a client very quickly and often the client is completely unaware. A simple example is the listing agent (represents the sellers) who spoke up and gave up the refrigerator when the buyers’ agent (representing the buyers) was about to tell her that the buyers accepted the last offer.

So how do you choose a good Realtor who will negotiate strongly on your behalf?

First rule is that, if you are interviewing an agent and they are offering discounts, rebates and/or lowered fees for the services, that agent will never be a strong negotiator on your behalf. He/she is already giving away their own income, what will they do with your money?

Secondly, the turnover in the real estate industry is extremely high. Over 80% of new agents leave within 2 years. Those who last beyond 5 years are the ones who know how to do their job well. They are the cream. How long has your agent been a Realtor?

Third, how many transactions is your agent responsible for in a given year. Most agents average 10 transactions per year. It takes them 5 years to see 50 deals and learn the complexities of the business. Look for someone who handles 25 or more annually.

The Lubinsky Team handles over 100 transactions annually, has combined experience of 28 years of experience, lead by Jim Lubinsky with 17 years as a Realtor and works to negotiate for our client’s best interest at all times. Give Jim call now. 614-766-5330 ext 119 to find out more about my “client care program”.

NEW Home Buyer Beware!

2007-01-23T06:53:00.000-08:00

New home buyer BEWARE!!
Get involved with your Realtor before stepping foot in a builder’s model

Working with a Realtor to purchase a new build home may seem unnecessary, however, there are many pitfalls that only an experienced agent can anticipate and help you avoid before you make the deadly mistake of plunking down a “deposit” then finding unexpected surprises.

The call came to me from a man who is buying a new build condominium and has many questions and concerns. He wants me to represent him and help him through the process. Unfortunately, he has already signed a purchase contract and now realizes he needs more information. The builder will not permit agent involvement after the fact.

Builder sales reps are very adept at convincing their prospects to sign a contract. “We have 2 other people looking at this lot and they are coming back tomorrow” is just one of the motivational tools employed. The sales rep is paid to get your signature and deposit on a contract. They do it daily and most are very good at it.

Recently another client signed without my involvement and called to inform me after the fact. Same scenario, the builder rep disallows my involvement at this point. My client later discovered the home to be in flood zone ($40 extra monthly for insurance) and other issues.

One of my new build clients is said to me “the dumbest thing I ever said was ‘we don’t need a Realtor….’” Fortunately this client did involve me prior to contract. These words were told to me after the closing. My assistance was valuable in resolving several key issues and helping my client avoid other pitfalls along the process of building their new home.

If you think of dropping by a builder’s model home, call me first. At the very least, if you sign anything or register your name in any way, also include my name as your Realtor on the documents. Better yet, call and involve me from the start.

What Happens Behind the Scenes

2007-01-23T06:52:00.002-08:00

What Happens Behind the Scenes
It can be very tempting to start out with a higher price saying to yourself “I can always lower it later if necessary”. If you start out with too high a price on your home, you may have just added to your stress level, and selling a home is stressful enough. There will be a lot of "behind the scenes" action taking place that you don’t know about.
Contrary to popular opinion, the listing agent does not usually attempt to sell your home to a homebuyer. That isn’t very efficient. Listing agents market and promote your home to the 6,700 other local agents in Columbus who do work with homebuyers, dramatically increasing your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer’s agents coming to preview your home so they can sell it to their clients.
If the price is right.
If you and your agent have overpriced, fewer agents will preview your home. After all, they are Realtors, and it is their job to know local market conditions and home values. If your house is dramatically above market, why waste time? Their time is better spent previewing homes that are priced realistically.
So it is very important to price your home correctly for the market right from the start. That first 30 days is a critical period during which you might expect to get the best price. After that initial period, you might expect to make more compromises, receive lower offers and ultimately, especially if your home was overpriced to start, receive less for you home than you would if it were priced right at the beginning. Listen to your agents advice on pricing.

The Listing Agent

2007-01-23T06:52:00.001-08:00

The Listing Agent - Marketing Your Home to Other Agents
The Multiple Listing Service
Even before the sign is up and the brochures are ready, your agent should list your property with the local MLS (Multiple Listing Service). The MLS is a database of all the homes listed by local real estate agents who are members of the service, which is practically all of the local agents.
Important information about your property is listed here, from general data such as square footage and number of rooms, to such details as whether you have central air conditioning or hard wood flooring. There should also be a photo, and a short verbal description of what makes your house "special."
Agents search the database for homes that fit the price range and needs of their clients. They pay special attention to homes that have been recently placed on the market, which is one reason you get a lot of attention when your house is first listed. Many agents will want to preview the home before they show it to their clients.
The main point about having your house listed in the MLS is that you expand your sales force by the number of local MLS members. Instead of having just one agent working for you, now you may have hundreds or more, depending on the size of your community.The listing agent’s main job to make sure that the other MLS members know about your house. This is accomplished through listing your house in the Multiple Listing Service, broker previews and advertising targeted toward other agents, not homebuyers. Surveys of buyers consistently and repeatedly show that 45 to 50 of buyers found their new home through their Realtor. Exposure through the MLS is the strongest, most effective marketing available today

Tax Time Again

2007-01-23T06:51:00.000-08:00

Tax Time Again
What about housing deductions?
For those of us who own homes, and are preparing to file our 2005 tax returns, here is a list of the itemized tax deductions available to most homeowners:
· Mortgage Interest. Interest on mortgage loans on a first or second home is fully deductible, subject to the following limitations: acquisition loans up to $1 million, and home equity loans up to $100,000. If you are married, but file separately, the limits are split in half.
The concept of an acquisition loan is very important, and has confused -- and even trapped -- a large number of homeowners. To qualify for such a loan, you must buy, construct or substantially improve your home. If you refinance for more than the outstanding indebtedness, the excess amount does not qualify as an acquisition loan unless you use all of the excess to improve your home. However, any other excess may qualify as a home equity loan. As this column has reported in the past, both the IRS and this columnist do not support loans which exceed the total equity in your house. It is too dangerous a risk to take, with perhaps your most valuable asset.
Let us look at this example: Several years ago, you purchased your house for $180,000 and obtained a mortgage (or deed of trust) in the amount of $130,000. Last year, your mortgage indebtedness had been reduced to $120,000, but because the market dramatically increased, your house was worth $300,000.
Because you wanted to pull out some cash from the equity in your home, you refinanced and were able to get a new mortgage of $200,000. For tax purposes, your acquisition indebtedness is $120,000 (i.e. the amount of your existing loan). The additional $80,000 that you took out of your equity does not qualify as acquisition indebtedness, but since it is under $100,000, it qualifies as a home equity loan.
Several years ago, the Internal Revenue Service ruled that one does not have to take out a separate home equity loan to qualify for this aspect of the tax deduction. However, if you would have borrowed $225,000, you are only able to deduct interest on $220,000 of your loan -- the $120,000 acquisition indebtedness, plus the $100,000 home equity.
The remaining interest is treated as personal interest, and is not deductible.
You should also note that for all practical purposes, there are no restrictions on the use of the money obtained from a home equity loan. You no longer have to justify your loan as meeting certain educational or medical requirements.
· Taxes. Property taxes, both state and local, can be deducted. However, it should be noted that real estate taxes are only deductible in the year they are actually paid to the government. Thus, if last year you escrowed monies with your lender for taxes to be paid in 2006, you cannot take a deduction for these taxes when you file your 2005 return.
However, if you bought a house last year, you may have reimbursed your seller for a portion of the prepaid taxes through the end of 2005. (My note: In Ohio property taxes are rarely prepaid. Normally the seller reimburses the buyer at closing for unpaid taxes. This is reflected on both the buyers’ and sellers’ HUD-1 statements). Review your settlement sheet carefully. Line 106 on page 1 of that statement should reflect this tax adjustment. Since this was a current payment by you for real estate taxes, it is a deductible item (My note: refers again to buyer reimbursing seller). Indeed, when you receive your annual statement from your lender showing the amount of taxes paid last year, that may not be included in that statement. Lenders are required to send these annual statements to borrowers by the end of January of each year, reflecting interest and taxes paid for the previous year. (My Note: If you received a credit from the seller, you may not be able to deduct that portion of your payment, as it was reimbursed to you).
· Points. When you obtain a mortgage loan, you often have to pay one or more points to get that loan. Whether referred to as "loan origination fees," "premium charges," or "discounts," they are still points. Each point is one percent of the amount borrowed; if you obtain a loan of $250,000, each point will cost you $2,500.00. (A buyer can normally deduct points paid whether paid by the buyer or by the seller. The seller cannot deduct points paid for the buyer during the year that payment was made, but can handle it on a longer term write off).

The above was extracted from the original article as published January 16, 2006 in Realty Times
Housing Counsel: Income Tax 101by Benny L. Kass

Home Owbers Hazard Insurance

2007-01-23T06:50:00.000-08:00

Home Owners Hazard Insurance
How the Industry Sets Your Premium Rate

The industry uses a program named “CLUE” (comprehensive loss underwriting exchange) to track claims by owner and by property. All companies share the data base. You may be impacted when renewing or obtaining a new policy by your personal past claims experience or by the claims history of the property you are acquiring.

In general, the industry cannot use information to target areas or neighborhoods for rate hikes or coverage decline. However, your personal experience or the experience of a house you are buying can impact your rate. One company as example looks for a personal claim in the past 6 years or a claim on the property during the past 6 years. Any fire or theft claim on the property results in a less than preferred rate.

Insurance companies also rely on insurance credit scores. These are similar to your financial credit score but based partially on other data. Higher scores result in lower rates. Currently there is a heated debate about including inquiries (many of which do not result in a claim) into calculating the credit score. Simply by making an inquiry about a potential claim you may trigger a change in your rating.

If you are experiencing higher than normal rates ($1,000 or more annual premium) or being declined for coverage there are several options to pursue. Give me a call to discuss some strategies to lower your premium and/or obtain current bids from other companies.

How property conditions affects your offer

2007-01-23T06:49:00.002-08:00

How Property Condition Affects Your Offer
Since you have toured the property you are interested in, you should know how it compares to the general neighborhood. All you have to do is put the home in one of three categories - average, above average, or below average.
When evaluating a home’s condition, there are a number of things you should consider. Structural condition is most important - items such as walls, ceilings, floors, doors and windows. Then paint, carpets, and floor coverings. Pay special attention to bathrooms and bedrooms and whether the plumbing and electricity work efficiently. Look at the fixtures, such as light switches, doorknobs, and drawer handles. The front and back yards should be in reasonably good shape.
The missing ingredient will be information on the condition of the homes from your comparable sales list. As your agent we can help you compare your choice to other homes. We see hundreds of homes in working with other buyers and are prepared to help you value the home you are interested in purchasing.
Additionally, if your home of choice needs some fix up work, we have contractors to help you evaluate the cost of the fix ups.
Remember there are three important items that impact the marketability of a home: price, condition and location. We cannot change location so price and condition are your most important considerations.

Determining your OFFER price

2007-01-23T06:49:00.001-08:00

Determining Your Offer Price
When you prepare an offer to purchase a home, you already know the seller’s asking price. But what price are you going to offer and how do you come up with that figure?
Determining your offer price is a three-step process. First, you look at recent sales of similar properties to come up with a price range. Then, you analyze additional data, such as the condition of the home, improvements made to the property, current market conditions, and the circumstances of the seller. This will help you settle on a price you think would be fair to pay for the home. Finally, depending on your negotiating style, you adjust your "fair" price and come up with what you want to put in your offer. I will give you a range of recommended price to offer and you determine where you want to start. I will also recommend a “not to exceed” price for you. On a home that is priced right, it is likely your offer will be within 5% of asking price.
Comparable Sales
The first step in determining the price you are willing to offer is to look at the recent sales of similar homes. These are called "comparable sales." Comparable sales are recent sales of homes that compare closely to the one you are looking to purchase. Specifically, you want to compare prices of homes that are similar in square footage, number of bedrooms and bathrooms, garage space, lot size, and type of construction.
If the home you are interested in is part of a tract of homes, then you will most likely find some exact model matches to compare against one another.
There are three main sources of information on comparable sales, all of which are easily accessed by a real estate agent. It is somewhat more difficult for the general public to access this data, and in some cases impossible. Two of the most obvious information sources are the public record and the Multiple Listing Service. The latter is exclusive to Realtors who are members of the MLS service, for which we pay a fee.
Remember that your “buyer’s agent” should be working for you and negotiating on your behalf to get the best price and terms. Price is only a part of the offer. The terms of purchase are equally important. To find out more about negotiating an offer can me at 614-766-5330 ext 119.

Inspections you should require

2007-01-23T06:48:00.000-08:00

Inspections You Should Require
Besides appraisal and the termite inspection, you should also have a professional go through the house and seek out potential problems. Of course, you will have inspected the home, but you are not used to looking at some things that a professional will find. Even if they are not things the seller is expected to repair, at least you will have foreknowledge of any potential problems.
The seller will want this inspection performed quickly, so that you can approve the results and move forward with the purchase. Once you receive the inspection, you will want to allow yourself sufficient time to review and approve the report. If you do not approve the report, you may negotiate with the sellers on which repairs should be performed and who should pay for those repairs. Otherwise, you can cancel the purchase without penalty, provided you have met the timetables in your offer.
We always recommend our clients have a general inspection performed by a qualified home inspector who is a member of ASHI and has the proper credentials. If issues are raised by this general inspection, we may recommend additional specialist such as; hvac detailed inspection, chimney cleaning and inspection, foundation structural engineer review, etc. Allow a maximum of seven to fifteen days to perform the inspection and another five days to negotiate any remedies. Often we ask the seller to provide compensation for the remedies based on estimates for the work. That allows the buyer to make the repairs to his/her own desired standards. To learn more about the inspection process, send me an email or call me today at 614-766-5330 x119

Is Your Home Ready to Sell!

2007-01-23T06:46:00.000-08:00

Is Your Home Ready To Sell?
If Not It Will Linger Many Months Without A Buyer

In the Columbus Ohio market home sales are about equal to 2004 levels while the inventory is 13% higher. Your home is competing now with many other homes and needs, more than ever, to be in its best show condition.

Begin by looking at the wall colors and décor. The industry term is “neutralize”. Wall coverings can make a home more difficult to sell. Having walls painted in light neutral colors and/or lighter color sponge painting styles will improve appeal and sell faster. Consider repainting for your winter project.

Clean fresh looking floor coverings (carpets and vinyls) will further enhance appeal. Almost always better in this market to be uniform throughout the house in choosing new carpeting. Ok to change between floors but be consistent between rooms.

Curb appeal is everything in selling. Enhancing the look from the street can be achieved with landscaping and fresh paint on the front door, garage door, trim and siding (if siding is wood).

Lastly, unclutter rooms by removing furniture and storage items as much as possible. Minimal furniture, especially in small rooms, can help the buyer better visualize their furniture in place and make rooms look larger. Sometimes items need to be moved into storage while on the market, but this strategy can greatly advance the appeal.

If there are any major mechanical systems and/or structural items reaching or past normal expected life it is best to replace them now. Furnace, air conditioner, water heater, windows, roof, driveway, foundation etc. Buyers expect homes to be in good repair with significant service life remaining on these items. We see homes sell considerably faster and at higher prices with these items addressed prior to offering the home for sale.

If you want A FREE PROFESSIONAL survey of your home prior to going on the market, just give us a call Jim Lubinsky at 614-766-5330.