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Forbes magazine recently posted a great article about housing trends in America, “Americas Most Stable Housing Markets” The article ranks the Top 10 most stable housing markets in America. The real estate market has been dreadful in the last year. But, the good news is that Columbus, Ohio ranked 3rd on the list. Even though the 
State of Ohio & central Ohio consistently rank very high on many of the recent foreclosure rankings list, our area has ALWAYS had a very, stable housing market. One of the big advantages of living in central Ohio, even prior to the latest downturn in the real estate market, was our stable market. We’ve almost always enjoyed a solid, decent appreciation rate without the wide volatility swings that many other areas in the nation experience.
Great News! The Federal Reserve (Fed) on Tuesday had a bigger than expected drop in the federal funds rate. The aggressive drop will really help the local real estate 
market. Lenders in central Ohio now have approximate 30 year mortgage rates in the “low” 6% range. Many “so called” experts predict additional lower adjustments by the 
Fed over the next three to nine months.
In my opinion, in 2008 we will see many loan program rates between 5.50% – 5.99%. The low rates and Buyer’s (slow) market continue to make it a great opportunity to purchase a new home.
Current homeowners should continue to watch the mortgage rates to see if it would be advantageous to refinance their mortgage. You can click here to check your local mortgage rates. If you have questions about possibly refinancing then I would recommend that you contact your mortgage originator/lender or your Buyer agent for more help and information.
In the last year, many of my clients have reported problems with their home warranty plan. Most of the complaints dealt with legitimate/valid claims that were denied by the warranty company.
A home warranty is a insurance policy (but not regulated by the State of Ohio Department of Insurance) that covers most major mechanical components (heating, cooling, plumbing, electrical, air conditioning, etc.) of a home or condo for one year after closing. A home warranty typically cost $375 – $400. Homeowners pay a service fee (deductible) the first time a service provider is dispatched by the warranty company to make a repair. The service fee is typically $50-$100 and is applied for each new repair claim.
Home warranties have become a fairly standard item in real estate transactions in the central Ohio area. As an advocate of the home buyer, I’ve always tried to have a Seller pay for a one year home warranty plan for the Buyer. A home warranty is usually a good value and nice “piece of mind” for the new homeowner. The problems have been so bad with a few of my clients that I am seriously re-thinking the value of a home warranty.
Below is some good information about home warranties that the average consumer might not be aware of. I’ve also provided some tips on dealing with home warranty companies and how to process a successful repair claim.
- You will probably have to pay MORE than just your deductible. Make sure you read the fine print of your home warranty contract. Most homebuyers don’t realize that they will have to pay for some misc. parts and labor that might not be included in a warranty claim. The good news is that even on a major repair claim the total cost is typically no more than $100 – $200.
- Be prepared to be an “SOB”. Many homebuyers have to call in the same repair claim multiple times. This is typical with most home warranty companies. Remember, the home warranty company is a profit company that will try and do the “least expensive” repair. For example, your 20 year old A/C unit stops working. The warranty company repairs your A/C unit and everything seems to be working fine. Even though the unit probably just needs to be replaced with a new unit. Your A/C unit stops working again a week later. The warranty company authorizes another repair. A/C unit is working fine but then again a week later the unit fails.
- What is the renewal rate on home warranties? Homebuyers are allowed to renew their policies every year. Some home warranty companies claim a renewal rate of 50% – 75%. I think this number is BOGUS. In my experience since 1996, my clients have only renewed LESS than 25% of their home warranties.
- Ask your agent about any bonuses. Most home buyers are not aware that most real estate brokers receive a small bonus for every sold home warranty policy. This bonus is typically $50 – $75. You want to check with your real estate agent (buyer agent) and see how their office deals with this bonus. In my opinion, the bonus should be passed through to the home buyer or provided to a non-profit charity.
- Pre-existing conditions & Inspections. You need to make sure all of your mechanicals (furnace, A/C, electrical, etc) and appliances have been inspected. If home inspector finds even a minor problem it should be addressed in a repair request to the Seller. If an item is not working satisfactorily prior to closing then it will not be covered under most home warranty plans. Also, ignorance might void a possible warranty claim. If you just assume everything is working fine in your new home and you don’t check/inspect every item than any possible warranty claim could be denied. This seems like common sense. But, this has been a major misunderstanding for a lot of homeowners. For example; a Buyer does NOT inspect a home. A month after moving in the Buyer turns on the furnace or an appliance for the FIRST time. Homeowner discovers the item is not working. Home owner calls in a warranty claim. Home warranty representative ask home owner, “When did the item last work?” Homeowner answers, “I don’t know. My home is only a few years old and I didn’t inspect”. There is good chance that the item will not be covered under your warranty policy. You need to inspect everything and have documentation that all items are working satisfactorily prior to closing.
- Home warranty companies are out to make a PROFIT. You can’t forget this important point. Home warranty companies will always favor repair or multiple repairs over new replacements. I’ve had many complaints from my clients of having to deal with unprofessional and non-responsive customer service reps. Customer service reps actually hang up on homebuyers and also routinely kept home buyers on hold for 30 – 45 minutes. So, just be prepared to deal with the worst possible situation.
- Who is really the main customer for the home warranty companies? Let’s review everything so far. Home warranty companies pay bonuses to real estate brokers. My experience has been low renewal rates on existing policy. Home warranty district/area manager salaries are paid mainly to “drum up” business via soliciting real estate professionals. In my opinion, the business model of home warranty companies is mainly geared toward real estate brokers and NOT the home owner or policy owner. I think this is the main reason for the increased complaints from my clients in the last year.
TIPS:
- Don’t call at peak times. Mornings, lunchtime and late afternoons are peak times. Call at a non-peak times and plan on having 20 – 30 minutes of time to file your claim.
- Document everything. You need to obtain the name and phone extension of every customer service rep (CSR) that you talk to. You also want to take notes of the conversation, date and time of all calls.
- Ask to speak to a manager or supervisor if you feel you are not receiving adequate customer service.
- Submit your claim via the phone. Repair claims submitted via an email form (if applicable) appear to have a slower response time
- Most home warranty companies have district mangers that deal directly with real estate brokers. If you are having difficulty getting a satisfactory claim result, then the district managers can be very helpful in negotiating a satisfactory solution. Contact your real estate agent (buyer agent) to help you resolve your claim and to contact the district manager.
- Don’t be abusive or rude even if you are dealing with un-cooperative CSR. Always try to be calm and persistent. Never take no for an answer. But, you might eventually have to act like an “SOB” to get satisfaction.
- Check into other pro-consumer organizations that might be able help you resolve your home warranty claim issue.
State of Ohio Attorney General
Better Business Bureau
State of Ohio Department of Insurance*
Small claims court (Franklin County)
*House bill 243 – April 2004, Ohio Department of Insurance is now not responsible for regulating home warranty companies and policies.
Representing People, NOT Property!
How are our schools doing? Not too bad, according to the latest data from the State of Ohio Department of Education. All the public schools in the State of Ohio were given a “solid B” (effective rating) based on state tests results from the 2006-7 school years.
All of our local central Ohio schools did fairly well in the latest test results. For the first time, all central Ohio school districts were rated a “C” or higher. The Columbus school district (central Ohio’s largest school district) improved to “continuous improvement” over “academic watch”.
The main web site for the Ohio Department of Education is a tremendous resource for statistics, data and information on our schools. If you like to review statistics and data then you will love this post. You can research every imaginable statistic (proficiency test results, enrollment, student disciplinary actions, attendance, graduation rates, etc.) that deals with your local school district.
Survey results from our clients have shown that the condition of the school system is always one of the homebuyers top “biggest fears” when buying a home.
Below are some good links to review:
- Department of Education’s iLRC (Interactive Local Report Card)*
- Rating local central Ohio schools
- Report cards for local central Ohio schools (nice graphic)
- Central Ohio schools with the biggest improvements & declines
- The performance rating of local charter schools.
- The 10 highest and lowest rated school district in central Ohio
- Map graphic of how central Ohio school districts fared
I hope this information helps.
*You will need to “uncheck” the match case box to utilize the power users reports section. This section is also incredibly slow.
eSORN is the electronic sex offender registration and notification web site for the State of Ohio. Attorney General Mark Dann has implemented one of the most advanced and effective web sites in the country to deal with sex offender notification. Most states have a antiquated patchwork system (mailing postcards) to notify the public of sex offenders in their community. The eSORN database is one of the first systems in the country to link all of the state’s county sheriff’s offices and correctional facilities records offices together. The eSORN web site is easy to use and provides great information to the public. Some of the great benefits of the new system are:
- Email Alert; you can quickly sign up to be notified via email if any sex offender moves into your community (within one mile)*.
- County Sheriff Offices; “one click” access to contact your local county sheriff to obtain more information or to submit a tip/sex offender.
- Instant Offender Search; you can instantly search to see which sex offenders currently live in your community. A great map tool**.
- Most Wanted List; View a list of the state’s most wanted sex offender
Everyone should check out the new eSORN system today, especially if you are thinking about buying a new home.
*To ensure that you receive email notifications please place notifications@icrimewatch.net in your address book and adjust your bulk or junk mail settings.
**make sure any “pop up” blocking utility program are turned off.
Did you know that the “Do Not Call” list is expiring? Don’t fret, most of us didn’t know either!
The National Do Not Call Registry was started 5 years ago (September 2002) to protect us from annoying telemarketer jerks and “phone spammers”. The “Do Not Call” (DNC) list has been an extremely popular piece of legislation with the public. Nearly half of the 140 million phone numbers in the DNC list were registered within months on the new law taking effect in September 2002. Your phone number is only vaild on the DNC list for 5 years after you have registered. You have to re-register every 5 years or your phone number will expire from the DNC list.
So take a few minutes to re-register all of your phone numbers (up to 3 phone numbers). You can also register cell phone numbers. In the past, fake email scams and bogus information circulated on the Internet that cell phone numbers would be under attack by telemarketers because cell phone numbers were exempt from the list. This is totally FALSE. Get the real scoop here: http://www.ftc.gov/opa/2007/02/dnccellphones.shtm
Please make sure all of your friends, family members and co-workers are aware of this information. No one wants to start getting “bombarded” again with phone calls at dinnertime regarding lawn care specials, 20% discounts on duct work cleaning for the next 30 days and the “most popular” annoying telemarketing call of all time; how to save money on your long distance service.
Here are some “FAQ’s” that also might help you.
Good Luck!
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
In early August, Governor Ted Strickland signed a new, expanded Homestead Exemption Act that will provide tax savings (money!!!) to qualified senior citizens and disabled Ohioans. The Homestead Exemption credit has been in effect for years. But, in the past there were very restrictive income requirements to qualify for the credit. 
The BIG NEWS now is that the new Homestead Exemption has NO income qualifications. If you are 65 years or older and a homeowner in the State of Ohio then you can reduce your taxes and save money just by filling out a form (Franklin County) and sending it in to your local county auditor.
IMPORTANT; completed form must be received by your county auditor by no later than October 1st, 2007. Please, you don’t think our government would give us anything free or make it easy. Good news is that the form is very simple to fill out. So don’t delay.
For example, if you have a home with a market value of $100,000, you would get billed as if your house was worth $75,000. The average savings to you would be $400.
Don’t fret if you don’t qualify for the new credit, just contact your parents, grandparents and other family members that might qualify for the credit. Your family members will be so happy that you saved them money that they will put you back in their will. Voila, you are in the money!
You can follow the links in this post for more information. Please contact your local county auditor for more information on eligibility and tax savings.
Excl
usively representing your interests as the Home Buyer
Buying a new or existing home can be a “nerve–racking”, stressful event in anyone‘s life. Past studies have indicated that purchasing home is in the Top 5 of most stressful events in a person‘s life. The Other most stressful events being marriage, divorce, death and loss of a job. For most people, purchasing a home will be the single, largest financial transaction that they undertake in their lifetime… But you already knew that.
Serving Columbus Ohio Home Buyers 
Hello, my name is Mike Marshall. I am an Exclusive Buyer Agent with Buyer‘s Resource Realty Services. I have been representing homebuyers since 1996. It is my responsibility and my duty to try and get my clients the BEST price & BEST terms on any home they buy. I help my clients with financing options, locating the home, determining a home‘s worth, negotiating the contract, inspections and closing the transaction.
Before becoming an Exclusive Buyer Agent, I worked 7 years in banking as a bank manager. Part of my responsibility as a manager was originating mortgages. So I bring extensive mortgage loan knowledge to my clients that hire me. It‘s a fact that if a homebuyer makes a wrong decision on the type of loan or program that doesn‘t match their goals and objectives, then this mistake could cost them thousands, if not tens of thousands of dollars.
My Buyer Broker Advocate! 
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