What You Need to Know to Buy a Home Today

Don’t let a sluggish economy get you down. There are reasons to shop for personal items—including a new home. I recently saw an advertisement for a new car that said you could return the car in the first year if you lose your job. While there may not be that incentive for homes yet, some other perks might give you reason to start your housing search.

If you can afford to buy, consider making homeownership a goal this year, especially if you haven’t owned a principal residence in three years prior to buying. The new stimulus package sweetens the deal for homebuyers who purchase a residence on or after January 1, 2009, and before December 1, 2009. The incentive is for first-time homebuyers who remain in their home for at least three years. It provides a credit for 10 percent of the home purchase price, up to an $8,000 limit. The credit can be taken on your 2008 or 2009 tax return.

If you close on a home after the April 15 tax deadline, you can apply for an extension provided that you close on your home before the extension deadline of October 15. If you’re extra speedy and have already filed your 2008 return, don’t worry — you can file an amendment to claim the credit. You have three years to do that. You’ll need IRS Form 1040X to do that.

Taking the credit on your 2009 return or getting the benefit now, before filing your return, by adjusting your income wage withholding are also options…

Read the entire article in my April Real Estate Update Newsletter

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio

First Time Buyers’ Dos And Don’ts

If you are a first time home buyer, you have a lot to learn.

Working from a blank slate you must build an understanding of the housing market, determine what you can afford, land a loan and hone in on a home that’s a good fit for your lifestyle.

The transaction will likely become your largest asset ever so there’s little room for error.

It is a daunting task, but you can ease your concerns if you take the process step-by-step, watching your footing as you move along the path toward the American Dream.

Below is a list of "Dos and Don’ts" to help first timers turn that stress into the self-confidence you’ll need to move closer to your first home.

The list focuses on areas first-timers typically stumble over in their initial home buying attempt. Knowing what you could face will help you avoid some of those trip ups.

The Dos:

DO examine your credit standing. You need to know your credit standing…

Click here to read the rest of this article in my May Real Estate Update Newsletter

 Also, FHA financing has really started to become the financing choice for a very large part of the homebuying market.  While it’s not just for 1st time homebuyers, it is perfect for them.  Read more about FHA financing here

As always your comments and questions are welcome!

Absentee voting for the March 4th Ohio primary election begins on Friday.

Any registered voter can request an absentee ballot.  Many voters request a ballot due to being out of town on election day or for a variety of other reasons, but simply wanting to vote early is more than enough reason.

Read an article on absentee voting in Butler, Warren and Hamilton counties here.

Whether you vote with an absentee ballot or in person on March 4th, please remember to vote.

Get more election information here:

Ohio Secretary of State’s site

Butler County Board of Elections site

As always, I would love to hear your comments!

The supply of homes for sale in West Chester and Liberty Township increased again.

As of the beginning of February the selection of homes for sale in West Chester rose 5.91% when compared to the beginning of January 2008 and a whopping 15.41% when compared to the same time in 2007.

The story is much the same in Liberty Township with the number of homes for sale increasing 6.99% as of the beginning of February when compared to the beginning of January 2008.  The percentage increase of 10.25% when compared to the beginning of February 2007 is more favorable than the West Chester increase.

The selection of homes to buy right now is terrific if you are thinking of buying.  Get out and take a look at the opportunities that are out there right now.

Interest rates are hovering around 5.50% right now for a 30 year fixed rate mortgage, which are much lower than they were just a few months ago

Opportunities for first time homebuyers are particularly good right now, especially when you consider the great rates and downpayment options provided by the FHA Loan program.

I would love to hear your thoughts!

My Newest Listing…

7988 Millwheel Way

West Chester, Ohio 45069

Lakota Schools

$235,000  – Four Bedrooms – Two Full and Half Baths

Immaculate Two Story Home Features Newer Hardwood Floors In The Family Room, Kitchen & Foyer. New Windows, Shutters, Carpet ’07, Newer Roof & More!  Warm, Inviting Family Room w/ Fireplace, Large Master, Large Deck Great For Entertaining, Overlooks Large Lot w/ Many trees. One Year Home Warranty.

To see more information on this home including many more photos and a virtual tour click here

This post is a little bit about a number of things…

First interest rates;  today a 30 year fixed rate mortgage is 5.49% compared to 5.95% just over two weeks ago (and a full 1.00% below what it was 18 months ago).  As I have said many times recently, and yes I probably do sound like a broken record, these rates are unbelievable.

I spent the weekend showing homes and made several observations to share as I went around this weekend.  There are a large number of vacant homes and condos for sale right now (motivated sellers).  And this should come as no surprise, the builders are very aggressive and very motivated right now.  There are lots of incentives out there and not all are advertised.  If you are thinking about new construction whether it’s building or simply buying a market home, it is a great time to do so.

A buyer asked me the other day;  "How will I know when the housing market has bottomed?"   My answer:  You won’t.  The only sure way to know that the market has bottomed out is when it’s on the way back up, and if it’s on the way up, it’s too late.  What I do know is the market has dipped and we are at the bottom of that curve.  It’s okay to buy down here.

Finally in the last two weeks there have been 116 new listings come on the market in West Chester and Liberty Township, Ohio and there have been 41 pending sales in that time.  So things are selling and we are continuing to see a great deal of new listings.

December 2007 Home Sales For West Chester & Liberty Township, Ohio

So, one by one let’s review…

Number of closed units, not good.  Down by 21.00% is not a good sign at all.  Yes, it was December, but that is compared to December of 2006.

Average sale price was up to $253,213 in December.  This is probably the most over examined statistic in real estate today.  What is doesn’t mean is that prices are rising, they are not.  What it simply means is, the average price of the homes that did sell, was higher.

The average days on market moved up to an average of 102 days on the homes that closed in December.  A very large increase over December 2006 that really bears watching.

The list price to sale price ratio was considerably lower in December.  In December of 2006 homes that sold in West Chester and Liberty Township sold for an average of 97.54% of list price vs. 95.72% in December of 2007.

For a bit of really good news…  look to mortgage rates which are hovering around 5.65% for a thirty year fixed rate mortgage.  These are unbelievable times to be buying a home!

I will continue to monitor these market numbers  for West Chester and Liberty Township Ohio and will share them as they become available.

I would love to hear your thoughts as well!

FHA Financing is back! 

Actually, it really never went away, but was certainly overtaken by the many loan programs that became such hot commodities the last few years.  Many of these loan programs were the subprime mortgages that we now hear so much about in the media.  And while most of these programs are now long gone, as are the lenders that made them, the FHA loan is now back in fashion.

Why is it such a good loan program for the first time homebuyer.  Among the many reasons are it’s low down payment requirement, it’s more lenient qualification guidelines and… the rates are so low right now that it is an incredible deal.

Here is a senario that I created today as an example:

Buyer buys a home for a purchase price of $150,000. 

Using the FHA loan, the rate as of today is 5.75% with just a 3.00% down payment. 

By the way, that 5.75% interest rate today was for 30 years, fixed rate.  (No adjustable rates with skyrocketing payments in a year or two). 

In this senario, the buyer’s monthly payment for principal and interest would be only $849.10!

This payment does not include property taxes and homeowners insurance, but what an opportunity to buy a home and stop paying rent with a truly low monthly payment.

And by the way, FHA loans are not just for 1st time homebuyers! 

If you would like more information on FHA loans or for that matter any other mortgage financing let me know and I will get you in touch with a top mortgage consultant.

More detailed information on FHA loans by clicking here