You are currently browsing the category archive for the ‘Buyer Broker’ category.
Your home is probably your most valuable asset. You want to make sure your home is fully insured. But, you don’t want to be over-insured. 
Many home owners don’t fully understand all the coverage options of their home owners’ insurance policy.
This blog post will give you 10 quick tips on how you can SAVE money on your home owners’ insurance premium.
- One insurer, multiple policies – It is best to have all your insurance policies (home, auto, boat, life, etc.) with one company. Almost all insurance companies will give their customers multi-policy discounts.
- Raise your deductible – You can possibly save between 12% – 37%, if you have a deductible of $500 to $5,000. You might not want to carry the same deductible amount for your auto and home owners policy.
- Newer is better – Home owners’ insurance premiums are less expensive for newer built homes. Older homes are typically more costly to rebuild and newer homes have safe, new mechanical systems. (electrical, heating, plumbing, etc.)
- Location, location, location – Do you live in earthquake prone California? Do you live in Florida where hurricanes are a fact of life? Other location issues to consider; are you close to a fire station?
- Insure the house, not the land – A fire and high winds will destroy your home, but not your land. Your land cost typically makes up 15% – 25% of your total home value.
- Don’t insure what you don’t have – Review your policy at least once a year. Make sure you aren’t over-insuring possessions (furs, computers, jewelry, guns, etc.). Also, pay close attention to endorsements on your policy. The amount of insurance protection that your receive per endorsement premium dollar is typically very costly.
- Better safe, than sorry – Smoke detectors, monitored security systems (fire/police), fire extinguishers, etc. can save you discounts from 5% – 20%.
- Where there is smoke, there is fire – More than 23,000 residential fires happen in the USA due to smoking issues. Some insurers offer discounts if all residents in home are non-smokers.
- Group discounts – Some insurers offer discounts to certain business or alumni associations. Make sure you ask your agent about this discount.
- Don’t jump around – If you are satisfied with your insurance company or agent then stay with that company. Most insurance companies offer discounts if you stay with them for 3, 5 and 10 years.
As always, you want to check with a licensed insurance agent before making any changes to your home owners’ insurance policy. I am NOT an insurance agent.
Special thanks to Stephen Evanko, Jr, Insurance Advisor and Author for reference material for this blog post.
Good luck out there!
IMPORTANT: Blog post modification. The source (Ohio Association of Realtors-OAR) for this blog post was inaccurate. I am sorry for the confusion. OAR incorrectly stated that new changes will apply to all single family homes. This is incorrect. Changes on April 1st will apply only to condominiums and investment properties. See previous blog post for more information: https://mybuyerbrokerblog.com/2009/01/08/new-condominium-loan-guidelines-for-2009/ I am sorry for the confusion.
Wow, this is incredible new (bad) news. It looks like the only good option for home buyer’s will probably be an FHA loan. Fannie Mae and Freddie Mac are both toughening their credit score and down-payment rules as of April 1.
In response, major lenders are already factoring in the higher fees, which reduces the effectiveness of the stimulus efforts.
Under the new guidelines:
- Buyers with down payments of less than 25 percent will be charged a three-quarter point add-on penalty, no matter how high their credit score
- Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a 1 percent add-on
- Refinancers who take cash out will be charged as much as three points if they have a low to moderate equity stake.
Freddie spokesman Brad German says the loan categories and credit risk combinations targeted by these fees “default at four-to-eight times” the rate of other mortgages backed by Freddie. “We have to manage these risks appropriately,” he says.*
Good luck out there!
*This blog post referenced “Ohio Association of Realtors” email newsletter.
If you are looking for help to buy a home in Columbus, Ohio then you should contact a Buyer’s Agent. But, not all Buyer’s Agents are the same. The best representation for a residential or investor home buyer in Columbus, Ohio is an Exclusive Buyer Agent (EBA) or Exclusive Buyer Broker (EBB). An Exclusive Buyer Agent will always look out for your best interest and protect you in the home buying process.
Here are the TOP 10 reasons to use an Exclusive Buyer Agent:
- We ONLY represent buyers. We are EXPERTS at buyer representation.
- We negotiate the BEST price and terms for you.
- We don’t sell homes. We advise, counsel and educate.
- We assist Buyers in evaluating the BEST financing options.
- We have a duty to DISCLOSE all material information to our Buyer’s.
- We are Buyer advocates that work to PROTECT your investment.
- We are the GUARANTEED highest level of representation.
- We SAVE you time and money. We pay attention to the details.
- We provide MORE available homes to our Buyer’s than most other agents.
- We locate, evaluate and negotiate for our Buyer’s.
For more information contact an Exclusive (true) Buyer Agent today.
Helping home buyers is our only speciality.
A true Buyer’s Agent (EBA) will have no conflicts of interest….ever!
An Exclusive Buyer Agent is NOT Superman. But, we are the home buyers best protection and advocate in the home buying process.
Good luck out there.
Starting in January 2009, Condo loan guidelines will be even more difficult for home buyers. Fannie Mae & 
Freddie Mac guidelines will change which will affect nearly all conventional condo loans. But, FHA loans should not be affected (good news). The major change is a pricing adjustment that will increase the interest rate for the following condo loans.
- Buyer is putting down 25% or less (Loan to value percentage exceeds 75%).
- If a condo loan term is great than 15 years
The approximate rate increase on these types of condo loans will be 1/2% or higher.
These new condo guidelines would have affected nearly 99.999% of all condo owners that I have helped since 1996. This is a ridiculous new change that I think will really hurt condo sales in the Columbus, Ohio area. We are moving in the wrong direction if we want to try and help the real estate and mortgage industry recover.
Good luck out there!
In our market, a FROG in your house is actually a really good thing. In real estate terms, a FROG means 
“family room over the garage”
How many of you out there honestly knew what this abbreviation meant? Many real estate agents & brokers don’t even know what a frog is?
Being able to decipher real estate abbreviations & terms has always been a funny, frustrating problem for many home buyers.
“Newer CC style home, 3BR, 1.5BA, WBFP, new A/C with a large FROG, no bsmt and only 209K” Can anyone please translate what I just typed here? heh, heh, heh.
Years ago, selling homes via classified ads in the back of newspapers and magazines was common place. But, now traditional real estate agents use other marketing venues, especially the Internet. So, the good news is that heavy use of vague real estate terms, abbreviations and euphemisms in real estate marketing is on the decline. But, abbreviations and euphemisms are still a problem in real estate that the homebuyer needs to be educated on.
Before I give you more important information on this problem, take a quick second and review our award winning TV commercial (SOB) below about the abbreviation problems in real estate.
I hope you enjoyed our funny commercial. You can click here if you would like to view our entire TV commercial series.
Now, back to the important information that you need to know! Our professional trade organization, “National Association of Exclusive Buyer Agents” (NAEBA) recently released an excellent home buyer informational report; “2008 Report on Home Buying Euphemisms and Lingo-How to read between the lines when you’re shopping for a home”
(you will need to have adobe software on your computer to view/print report. Click here if you would like to download the free adobe reader)
For years, I’ve told my clients that you have to be able to read between the lines when you are looking for a home. The information about the home on the main listing page usually has misleading descriptions.
For example:
Needs a little TLC or fixer upper…………really means the house is a dump and hasn’t been updated at all.
Cozy, cute home……………..really means the home is so small that it is difficult to turn around in.
Great landscaping, beautiful yard……………..really means the house is a piece of crap, but the seller has to found something positive about their house.
Damp basement in the spring…………really means we usually get 2-3 feet water in our basement once a year.
Sometimes sellers think minimizing problems in their listing descriptions, like, “damp basement” will protect them from getting sued for non-disclosure. I don’t think so!
One last tidbit of information for you. Many times in the listing description you will see the words “many updates” or “mechanical’s updated”. The problem is how do you define recently “updated”. My personal definition of “updated” is anything that has been done in the last 5 years.
You really have to be careful when you see a sellers and/or listing agents that uses “many updates” in the listing description. I had one personal experience where a listing agent stated that the roof was recently updated. After evaluating the home with my buyer client, It appeared to me that the roof had some prominent signs of aging (lost granuales, slight peeling/curling of roof shingles, etc.) and didn’t really look like the roof was recently updated. I contacted the listing agent for additional information and/or paperwork on the roof. The listing agent provided documentation that the roof was nearly 9 1/2 years old.
I asked the agent how they could describe a nearly 10 year old roof as recently updated. The listing agent’s 
explanation was that the new roof’s expected life expectancy was somewhere between 20-25 years and since the roof was still less than “half old” that they felt they could list the roof as recently updated.
Geez, are you kidding me! So again, be very careful when you see these words. You always want to make sure you have a full home inspection completed by a qualifed home inspector. Your Buyer Broker should also always ask for copies of receipts and/or invoices of any recent updates.
These are just a few of the funny, informative listing descriptions that you will find in the “Home Buying Euphemisms and Lingo report”. There are 50+ listing descpritions in this report that will help you understand the lingo when review listing information. But, remember your best protection is to have an Exclusive (True) Buyer Broker representing you.
If you thought this blog post was helpful, then you should also check out the “Problem With Staging Homes” blog post. Both articles deal with the same general topic.
Representing People, NOT Property!
Not Really!…..But I made you take a second to review our informative blog. The Homebuyer’s Advocate Blog could possibly be the best real estate blog in central Ohio. But that is for our subscribers & readers to comment on, NOT us. I’m playfully breaking one of the most important commandments of blogging.
Rule #1 of blogging, thou shall not blatantly self-promote.
10,000 Views!!!
In the last year, hopefully our readers & subscribers feel the Homebuyers Advocate has been an excellent resource for EVERYTHING real estate in Columbus, Ohio. We had a goal of reaching 10,000 views within the first year. We came extremely close to our goal. But, we fell short by only 13 days. Our new goal for next year is 50,000 views by the end of year two.
We’ve had some good exposure in the last year. Homebuyer’s Advocate Blog was used as a reference for a Columbus Dispatch news article in May, 2008. Andrew Show, Owner of Buyer’s Resource Realty Services was a guest speaker on WTVN 610 radio station. Our most popular blog post on home warranties was recently used as a reference in the current issue (September, 2008) of national magazine publication, “This Old House Magazine”.
Our mission statement for The Homebuyer’s Advocate Blog is to be the premier information resource for home owners in central Ohio with a primary focus on saving home owners money or preserving their equity/appreciation.
If you are a home owner or potential home owner in Central Ohio our blog is a growing database of important news and information that you need to be aware of.
If you take a second to review a few of our 37 blog posts, I bet you will find some information that will save you some money.
Good luck out there!
Save Moolah!
Even a small amount ($25, $50, $100) added to your mortgage payment each month when applied to the principal can have a significant impact on the total amount of interest you pay as well as how long you pay it.
For example, if you divide your monthly mortgage payment by 12 and add that amount to your monthly payment each month by the end of the year you will have paid the equivalent of an extra mortgage payment for the year—a 13th payment—all invested in principal reduction!
That 13th payment can make a big difference. For example, let’s say you borrowed $200,000 at 6.5 percent interest with a 30 year term. Your monthly payment would be a shade over $1,264 a month for principal and interest. By adding an extra $100 per month ($1,200 per year) you would pay off your mortgage in just over 23 years, knocking almost seven years off the loan and saving over $73,000 in interest.
Contact your lender to find out how they apply extra payment money from you. Some lenders may apply your extra money that you pay above your monthly payment amount automatically to your principal.
However some may appy it to your escrow account to pay taxes or insurance which is NOT what you want them to do! Make sure you read the fine print, and call (or write) your lender to confirm what they will do, or how you can assure that the extra money goes to reducing your principal balance.
Tip: Sending a separate check and clearly marking the “memo” field with your loan account and the phrase, “Apply to Principal”will help assure proper credit and provide strong documentation of your extra payments. Again, check with your lender.
Tip: Don’t bother with offers from your lender or 3rd party companies that offer to charge you money (often as much as $200-$300) to set up a bi-weekly payment program—you can accomplish the same thing yourself without their help—for free.
IMPORTANT NOTE: Although this is a great strategy to accomplish the twin goals of saving money and increasing equity in the capital asset that is your home, this may not be the best use of your financial resources.
Interest rates for home mortgages tend to be lower than most other consumer loans and your financial profile may suggest a better use for this money—like paying off higher interest consumer loans first.
Anytime you pre-pay extra money on any installment loan it has the same effect as investing your money at that interest rate. So if you had an extra $100 should you pre-pay it on a home loan at 6.5% or a consumer loan at 10%, for example? And don’t forget that mortgage interest is usually fully tax deductable, whereas other consumer interest is not.
Therefore, we recommend consulting a qualified financial advisor for a proper evaluation of your total financial picture before proceeding with this strategy.
(This money saving blog story was reproduced from the “Buyershome Journal” blog – April 12, 2007)
After years of failed attempts, it finally looks like we will have some licensing regulations in place for Home Inspectors in the State of Ohio by 2009. House bill (HB) 257 recently passed the Ohio House of Representatives by a wide margin (83-11). The bill will be reviewed by the Ohio Senate later this year when the legislature reconvenes after the November 4th election.
With all the problems in the last few years in real estate, it would be “political suicide” for any political official (wink, wink Gov. Ted Strickland) not to pass some positive legislation. Legislation designed to regulate & license Ohio’s home inspection industry is long over due.
For too long, any “Joe Schmoe” could print up a business card on their home computer and start a home inspection business. Because of this reason, there are inexperienced, unqualified inspectors in our area. This is a problem for a potential home buyer. The problems we have had in the home inspection industry are really “small potatoes” compared to all the other major problems in real estate (lenders, fraud, greed, non-disclosure, foreclosures, etc.). But, this is a good thing. This means legislation will probably get passed in the State of Ohio.
The new Home Inspection Licensing will probably include the following provisions:
1. Criminal penalties for performing home inspections without a license.
2. Creation of a process for investigating complaints filed against inspectors.
3. Creation of the Ohio Home Inspection Board to regulate the industry.
4. Creating minimum standards and guidelines for performing inspections.
Hopefully our state legislature will have the home inspection bill passed soon. I am confident that home buyers in 2009 will have the protection of home inspection regulation and licensing.
Home Inspector
Check out my previous past about “Home Inspection Nightmares”. This blog post also has good links to find qualified home inspectors in your area via The American Society of Home Inspectors (ASHI) and National Association of Home Inspectors (NAHI)
Good luck out there!
Last week, The Homebuyer’s Advocate Blog was used as a reference for a good article in the Columbus Dispatch by Jim Woods – Moldy Home Cost Builder $3 Million.
Jim put out a thorough follow up article about the moldy Maronda house and resulting lawsuit that has been in the news for the past few months.
Our very popular blog post (over 500 views) in late February reported on the same Maronda issue – Maronda Home Verdict Cost Nearly $3.2 Million.
I especially liked the way Jim “touched” on the Reynoldsburg Building Department signing off the home.
The house passes all building code requirements, but yet the south side of the house was not attached to the foundation and was inadequately attached on the other three sides. This was hilarious and sad all at the same time.
I’m sure I wasn’t the only person reading this article and saying “hmmm, how does that happen?”
How new homes pass building inspections & get occupancy permits is a mystery to most consumers & home owners.
I think the Columbus Dispatch has the start of whole other investigative exposé
I’ve heard many stories from experienced home inspectors that talk about the same problems and issues with homes passing building inspections.
For example, a home can pass plumbing & electrical inspections but yet have water leaks and no 
working lights. There are two main reasons why these problems sometimes happen with building inspections. First, many building inspectors just check to make sure homes are built to the correct specs, materials, items, hardware, clearances, etc. As long as a home is built to the correct specs and material it could possibly pass a building inspection. The second main reason why bad homes pass building inspections is human error. This happens even in spite of pressurized plumbing checks and other tests on mechanical systems.
I think it is about time to stop beating a dead horse. It is time to move past the issues of some new home builders in Central Ohio, like Maronda and Dominion homes. (Another Builder Casualty) The last few years, their issues have been thoroughly documented in every type of media & press publication. If you are an informed home buyer in Central Ohio then this is all old news.
The key phrase above is “if you are an informed home buyer“. I’ve been an Exclusive (true) Buyer Broker since 1996. I only represent residential and investor buyers. I’m sorry to say that the definition of a truly informed home buyer varies greatly. In most situations, a home buyer will spend only a few minutes researching the home buying process on the Internet sandwiched in between their favorite TV shows, American Idol and Dancing with the Stars. In one short evening a potential home buyer thinks they have thoroughly researched everything they need to know about the home buying process.
The reason this occurs so frequently is because researching on how to find the best representation possible for a home buyer is not fun and feels too much like work. Home Buyers just want to look at beautiful pictures of fabulous homes.
The first and most important decision a home buyer needs to make is who will represent them, NOT which home they buy or what builder to use. An Exclusive Buyer Broker (EBA) is the highest and best representation possible for any home buyer. Would an EBA been able to protect the buyer that purchased the moldy Maronda home. Maybe, yes or no. There are no 100% guarantees in life. A true Buyer Broker (EBA) isn’t always going to be a “Knight in Shining Armor”. But, we are the best base or foundation of having a successful home buying transaction.
On Tuesday, February 19, 2008, a couple in Franklin County Court won a jury verdict against Maronda Homes for nearly 3.2 million dollars. The couple, Roman and Jennifer Cosner alleged that Maronda Homes knowingly sold them a defective home. The jury verdict in favor of the homeowners stated that Maronda Homes did sell a defective home and that Maronda was aware of that fact. Maronda acted in an “unfair, deceptive or unconscionable” manner.
Maronda has always had a reputation for building the biggest square footage home possible at the lowest price. No other local production home builder can even come close to the price and square footage of Maronda Homes. There is usually a reason why this happens. It is not really complicated. Home owners should stop being so naive. You buy the lowest priced “anything” and you are going to have problems. I don’t care if you buying a new home, a 
toilet seat or a widget. You get what you pay for!!!! Like many home builders, Maronda has had it’s fair share of unresolved consumer complaints.
In my opinion, this could be landmark case for new home builders. The jury ruling in this case has now set a precedent for all future, similar cases. I would be really curious to see how this affects the policies and procedures of other builders in our area. I bet many builders are now “scrambling” to figure out how to adjust their business practices to deal with this jury verdict.
I’m glad the home owner had won their court case. But, I guarantee you, that they probably didn’t use an Exclusive Buyer Agent to help them purchase their new built home. If they had the proper Buyer Broker representation looking out for their best interest then this problem probably would not have happened. As consumers we have to be accountable for our bad decisions or lack of…..
Stay tuned for future posts on this topic.
HomeBuyer Advocate Mike
Representing People, NOT Property!
My Buyer Broker Advocate! 
Cool Comments!