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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!
It is still a great time to be a home buyer in the Columbus, Ohio area. But, in my opinion, the real estate market has now started to turn in Central Ohio. The market will gradually start shifting back to a normal market which is typically a Seller’s market. There are 3 to 4 reasons why the real estate market in Columbus, Ohio is finally starting to change. 
Reason number 1: Mortgage rates bottomed out at a few weeks ago at a low of 5.125% – 5.250%. We have seen the end to flat, low home prices and super low mortgage rates. Everything will start to rise (interest rates and house prices) from this point forward. I predict, in the next six to nine months will still see rates in the range of 6.00% – 6.75% and home prices just modestly increasing. As home buyers we can’t really complain, mortgage interest rates in the “6” range is still really good.
Reason 2: President Bush will sign the economic stimulus package in a few days. In financial terms, the 170 billion+ package will not actually do that much to improve the economy. But, it will help a little. The main benefit of the economic stimulus package is that the consumer confidence in the economy and our government will increase because we were able to get something accomplished, even though that “something” was very small.
Reason 3: My personal buyer activity has increased dramatically in the last 10 – 14 days. I’ve been receiving a lot of phone calls and emails from interested home buyers with questions and looking for help.
Reason 4: It’s all about supply & demand. The inventory in the last 9 months has continued to drop drastically. The end of last Summer we had 21,000+ listings on our multiple listing service(MLS) system. As of right now, we have a little more than 16,300 listings. Granted the drop in the listings is mainly due to the slow winter and holiday season. But, it is still a significant decrease. Even with the listings going down, we are still at insanely high inventory levels. The key months to watch inventory levels will be May, June & July. How these three months go will probably predict the rest of 2008.
This is my prediction on where we are headed in 2008 for the real estate market in Columbus, Ohio. Back in September of 2007 (about 5 months ago), I correctly forecasted in 2008 that we would see all mortgage programs with rates well under 6%. Review my 5.99% or Lower blog post. I did receive a few emails and phone calls from lenders that didn’t think I knew what I was talking about. These lenders didn’t think rates would go that low. I guess I got lucky on that forecast. Again, I could be wrong or I could be right on my latest prediction for 2008. I still think 2008 will be a great year for home buyers. But, the buyer’s market is sort of over. Good Luck!
Finally a good article that fully explains everything the consumer needs to know about buyer agents. Broderick Perkins with deadlinenews.com has put out one of the best articles that I could find explaining the differences among “so called” buyer agents. Fake Buyer Agents have always been a problem for the average home buyer. Hopefully, similar articles will follow in the future. Watch out and good luck out there!
As an Exclusive (true) Buyer Agent since 1996, I have had to consistently deal with the false manipulation of real estate statistics by real estate agents that is often encouraged by our local real estate board and multiple listings service (MLS). Recently the “days on the market” (DOM) statsitic has been in the news lately because multiple listing services in other 
parts of the country (for example, Southern California) are debating on removing DOM from reports that home buyers view.
A quote from the SoCalMLS (Southern California Multiple Listing Service) online newsletter, “the bottom line is that you, the real estate professional are in the best position to explain to your customer-buyer or seller-what the true DOM figure is and what it means”. Part of this quote is true, you need to use an exclusive buyer broker that you trust to help explain the pros and cons of ALL real estate statistics. But one thing I’ve learned from being a buyer broker is that you have to be able to “read between the lines” or “filter out the garbage” when disseminating information. In my opinion, the MLS systems and real estate boards will ALWAYS favor the Seller, and not the Buyer or the consumer in general. The above quote from the SoCalMLS is a perfect example of what I am talking about. It does make sense to have a qualified, experienced agent help explain the DOM statistic to a Buyer or Seller. So, WHY hasn’t this been SoCalMLS policy from the beginning? Isn’t it strange, that they now want to implement this change in a slow real estate market that is now cosidered a BUYERS MARKET? In my opinion, the real estate boards feel that the depressing DOM stat is making it harder to sell homes in this slow market. Why are their so many people out there that have their heads so far up there $%&*@#.
I agree that many times consumers are “bombarded” or overloaded with a lot of information and statistics. Sometimes the information and statistics are meaningless. But the solution to the problem is not to limit, delete or “hold back” information from the consumer. The best type of market for any industry is where the products, services and information are totally open and available to all consumers. That’s my opinion!
Another “somewhat” good article about buyer’s agents popped up over the weekend in the Columbus Dispatch newspaper. Buyer’s agents work on clients behalf, using one can help bring a better deal on home purchase. This story was written by Mary Ellen Slayter of The Washington Post. Mary has a decent history of writing informative articles (for example, Watching Out for You, the Buyer) that help educate home buyers and explain the virtues of using a buyer’s agent.
But, like many writers, Mary’s articles fall short of providing accurate information. Mary’s main sources and references in her articles are mainly tainted by traditional real estate agents and organizations that are trying to promote the real estate industry in general, and NOT really promoting true buyer advocacy. The most important issue for any potential home buyer is to first find a qualified Exclusive (true) Buyer Agent (EBA). Articles like Mary’s do more harm than good because they don’t clearer state the important differences between a traditional real estate buyer agent and an Exclusive Buyer Agent.
Many traditional buyer agents will sell homes and take listings. This creates a huge, conflict of interest to any home buyer and exposes them to being “sold” properties by their so called buyer agent instead of their buyer agent being their advocate and adviser. Almost all Exclusive (true) Buyer Agent have access to all homes in their market but they do NOT SELL homes or take listings at all! An Exclusive Buyer Agent is the highest, best representation possible for any home buyer.
Many traditional buyer agents are just using the “title” to try and capture business. Mary’s suggestion for finding a buyer agent, “Another way to find a buyer’s agent is to visit open houses” is probably one of the most negligent and craziest suggestions that I’ve ever heard. Home buyers should start at the National Association of Exclusive Buyer Agents (NAEBA) if they are trying to find a good, qualified buyer agent. Good luck!
Finally some good news for Central Ohio home buyers. Cincinnati’s largest home builder, Fischer homes will be entering 
the new build home/condo market in the Columbus, Ohio area. Fischer homes saw a good opportunity to finally enter the Central Ohio market. Fisher homes was able to purchase land and lots from Centex homes, that pulled out of the Columbus market last year. Fischer Homes acquired more than 280 lots in Central Ohio.
the new build home/condo market in the Columbus, Ohio area. Fischer homes saw a good opportunity to finally enter the Central Ohio market. Fisher homes was able to purchase land and lots from Centex homes, that pulled out of the Columbus market last year. Fischer Homes acquired more than 280 lots in Central Ohio.
Fischer Homes appears to be a fairly strong builder with a good reputation. As an Exclusive Buyer Agent I looking forward to working with my new home build clients to compare Fischer Homes to the other good home builders that are already established in our market. The increased competition with new home builders will be GREAT for my buyer clients. In my opinion, the competition between builders will increase QUALITY and LOWER PRICES in the long run. For more information on buying a new build home or condo check out this section in our main company web site. Good luck to Fischer Homes!
In 2000, we won FIRST PLACE in the television advertising category for a medium/small real estate firm in the State of Ohio. The advertising & promotion contest was 
sponsored by the Ohio Association of Realtors (OAR). These television commercials were conceived & produced in Central Ohio by a good friend of mine who is in advertising. We produced these commercials for the National Association of Exclusive Buyer Agents (NAEBA). NAEBA is our professional trade organization. I hope you enjoy these spots. I am really proud of the commercials. I think the messages of these commercials are very powerful. Today’s home buyer really has to question their “so called” buyers agent’s loyalty, competency and advocacy. The home buyer really has to be aware of their agents duties and required disclosures to them or LACK OF! The 30 second spots are funny, informative and controversial.
Cannonball II http://youtube.com/watch?v=agN7p1lGvtQ
(This is not a clip of that great Burt Reynolds sequel movie in the 70’s – Cannonball Run)
Problem http://youtube.com/watch?v=1c15qPWkAz8
Flight Path http://youtube.com/watch?v=1ASHpSARguU
Watercooler http://youtube.com/watch?v=5OR8JSETKVs
SOB http://youtube.com/watch?v=C1KfYDx_DAI
Thinking http://youtube.com/watch?v=mTaiJqGDmPg
Hounds http://youtube.com/watch?v=cKFtTGCzHJ0
Cannonball http://youtube.com/watch?v=1xD37nhebGU
In the future I hope to have more home buyer advocate clips on my main youtube site:
http://youtube.com/profile?user=OSUMike64
Ohio Association of Realtors Award Certificate
I hope you enjoyed these funny, informative spots.
The National Association of Exclusive Buyer Agents (NAEBA) is back in the news again. The July 17, 2007 Newsweek Magazine touts the huge benefits of using an Exclusive Buyer Agent that belongs to NAEBA. Not all Buyer Agents are the same. 
Don’t be FOOLED! Many traditional real estate agents just use the title of a Buyer Agent in order to “drum up” more business. The best representation and protection for any residential or investor home buyer is an Exclusive Buyer Agent. Exclusive Buyer agent simply means that the agent will NEVER take listings or sell homes. You will not be steered toward company listings or SOLD a home.
An Exclusive Buyer Agent is the guaranteed highest and best form of representation available for a home buyer. Exclusive Buyer Agents will have access to all the homes on the market and probably have access to more homes then even a traditional real estate agent. Every potential home buyer should read this Newsweek Magazine article. It is great information.
I also really appreciate that the author of the article quoted Stephen Brobeck of the Consumer Federation of America (CFA). For nearly 30 years, the CFA has been the PREMIER consumer advocacy group in the country. The CFA works to advance pro-consumer policies dealing with food, agriculture, real estate, finance and communication. From nearly day one!, the CFA has always advocated using an Exclusive Buyer Agent instead of any other type of “so called” Buyer Agent.
So don’t settle for anything less then a true Exclusive Buyer Agent from NAEBA
My Buyer Broker Advocate! 
Cool Comments!