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Last week, National City Bank announced that they will lay off 900 employees from their National City Mortgage division. National City has decided to shut down their wholesale mortgage department. The wholesale department was responsible for originating first and second mortgages with other mortgage brokers. National City will still originate 
mortgages to the consumers through their branch office networks.
National City Bank is the the state of Ohio’s largest bank. The layoffs can be directly tied to the problems in the sub-prime mortgage crisis. This is another example of Banks “circling the wagons” and tightening credit options. As an Exclusive Buyer Agent I am actually more concerned with the trend of banks restricting or tightening credit options then with the layoffs. Tightening credit options & layoffs are both terrible for our economy. But, in my opinion, the bank management decisions to tighten credit and make it harder for the consumer to obtain mortgages will be a lot more detrimental to our economy and recovery in the long run. Contact me if you have any questions or if you are looking for a lender.
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!
It has been a rough year for the real estate market & mortgage industry. But this week there was some good news, the US Congress extended legislation that makes mortgage insurance payments tax deductible until 2010. This legislation is one of the “bright spots” that will really help new and existing homebuyers for the next three years. Deducting the cost of mortgage insurance tax returns is expected to SAVE eligible borrowers $200 – $400 a year. The tax legislation, originally approved in December 2006, is basically the same expect for the three year extension. Borrowers whose annual adjusted gross income is $100,000 or less can fully deduct their mortgage insurance premiums from their 2007 – 2010 tax returns for homes purchased or refinanced during those time frames. Borrowers with incomes between $100,000 and $109,000 are eligible for a reduced tax break under the law. You can contact me if you further questions.
Below are some great links and a video that really help explain & understand mortgage insurance (MI) and last year’s tax legislation.
MarketWatch: Explaining The Tax Status of Mortgage Insurance
Wikipedia – Mortgage Insurance
News Story – One Step Closer To The American Dream!
Good Luck,
I’ve been receiving a lot of good information from experienced lenders that I trust. Everyone really needs to be aware of some drastic changes that will be occurring in 2008. The sub-prime lending mess, declining real estate market and foreclosures in the past few years has finally starting to “trickle down” and will affect almost all potential home buyers. In 2008 you will see a lot of changes to underwriting guidelines. The good news is that FHA loans will be less affected than conventional loans. The demand for FHA loans will probably increase in 2008. The guidelines will be more strict. For example:
*Conventional loan home buyers with a credit score of less than 680 and less than 30% down will see a significant increase in interest rates.
*Home buyers putting less than 5% down and a credit score of 620 will be ineligible for mortgage insurance. If you don’t qualify for mortgage insurance then you don’t qualify for the loan. This is not rocket science!!!
*Mortgage insurance companies will also require appraisers to document if a home is in a increasing, stable or declining market. If a home is in a declining market then a buyer putting less than 10% down and a credit score of 620 will be ineligible for mortgage insurance.
The problems in the lending market are really starting to take their toll on home buyers loan options. Again, most of these changes will affect conventional loans and not FHA loans. In 2008, FHA will incorporate a sliding scale for mortgage insurance rates based on credit score. This sliding scale system is more of a “reward” for higher credit guide scores than a “punishment”. As of right now, there are no major underwriting or pricing changes forecasted for FHA loans. So if you’re a potential home buyer next year, it is now even more important to make sure you use a good, experienced lender. Contact me if you need a reference for a good lender or if you have any further questions.
This Old House magazine’s latest Home Inspection Nightmares IX (9) photo gallery is hilarious. My favorite photos are #1 (8 junction boxes) & #5 (cymbal diverter). I love this photo gallery series. You can also check out past Home Inspection Nightmare photo galleries. All the photos are very funny. But, all joking aside, the photos reinforce an important part of buying a home.
First, always get a home inspection. Never skip a home inspection just to save a little money. 100% of my clients agree to do a home inspection or I will NOT represent them as their buyer agent. A home inspection contingency is one of the home-buyers best protection options. Second, make sure you home inspector is qualified. About half the states in the country have little or no licensing requirements for home inspectors. In many states, anyone can print up a business card and say they are a home inspector, even your Uncle Bubba!
I would recommend looking for a “certified” home inspector that is a member of The American Society of Home Inspectors (ASHI) or The National Association of Home Inspectors (NAHI). Both of these organizations are very good at establishing high standards of practice, inspection guidelines, professionalism and code of ethics for its members in the home inspection industry. It is very important that you make sure your inspector is a “certified” inspector. A “certified” home inspector has more experience, education and testing requirements than other home inspectors. You can search here for home inspectors in your area: ASHI home inspector search or NAHI home inspector search. Good Luck!
Below is one of our award winning buyer broker TV commericals that deals with home inspections. Check out my previous blog post for more information on our funny, informative television commercials.
Staging homes is really “storming” the real estate industry. In the past few years, staging homes has become an increasingly growing “cottage” industry within the real estate market. In 2007, The National Association of Exclusive Buyer Agents (NAEBA) surveyed their brokers & agents and found that 82% of the respondents stated that buyers were likely to get distracted from important issues when viewing a staged home. In addition, 51% of the respondents noted that staged homes often cover up 
major defects and structural damage. NAEBA is a small, international, professional trade organization that works to represent the best interests of the real estate buyer. A recent article by columnist Blanche Evans with Realty Times ATTACKED NAEBA’s position on home staging. Blanche’s article is one of the most biased pieces of journalism that I’ve ever read! In Blanche’s article she states that “NAEBA is a spoilsport when it comes to staging homes” and NAEBA’s position on staging is SILLY and can possibly do serious damage” Blanche’s article continues the trend of “old school”, traditional real estate brokers, insiders, agents, etc. that just don’t get it. Blanche’s article is just preposterous!!!
OK, let’s try and help all the “confused” Blanche’s in the world. First of all, Blanche is correct that a home-buyer’s decision (right or wrong) to purchase a home is always going to be based on three factors: emotional, practical and financial. A buyer agent’s responsibility is to properly advise their clients not to rely too heavily on the emotional aspect of buying a home. As buyer agent’s, we believe our home-buyers decision process should be ranked: financial, practical and then emotional. The sole intention of staging a home is to get the buyer emotionally attached to a home. So, why attack the “spoilsports” at NAEBA? 
There is nothing wrong with staging homes. Right now, staging homes is “red hot”. In the past, staging homes was limited more to higher end properties. Not anymore, sellers can spend a few hundred dollars to thousands of dollars to stage their homes. Done the right way, staging a home is another excellent way for the seller to market their home. But, I have no doubt, that the increased emphasis and “frenzy” on more elaborate ways to stage homes will definitely increase abuse and deception by the sellers. Sellers will be more likely to try to hide defects in their home through staging options. For example:
It is OK to add small furniture to make rooms appear bigger, but NOT OK to position furniture to hide holes in the walls or termite damage.
It is OK to play soothing, pleasant music as long as you are not trying to hide, “clangy” plumbing pipes.
It is OK to have cookies baking and pleasant smells as long as you are not trying to hide dingy mildew/mold smells.
It is OK to add a nice, expensive rug as long as you are not hiding a stain in the carpet or damaged wood flooring.
All the examples above are based on a seller NOT disclosing these issues or problems in a state required disclosure form (if applicable). Most states require sellers to provide a disclosure form to potential buyers.
It is a buyer’s agent responsibility to protect their clients by uncovering issues or problems that are listed above in the examples. I do not want to diminish the responsibilities and duties of the buyer’s agent. But as staging becomes more prevalent then deception by sellers is going to occur no matter who the buyers have protecting them.
I can GUARANTEE you that the increased emphasis on more complex and elaborate home staging will increase the number of sellers trying to hide major issues that they should have disclosed (ethically and legally).
”So, be careful out there” – Sgt. Phil Esterhaus, Hill Street Blues
Now let’s end this post on a lighter note. The all time FUNNIEST home staging mistake that our office has seen was when a seller left a ”porn” tape on a bookshelf right below their framed picture of the Ten Commandments. No joke, this funny staging “faux pas” did actually occur with one of our agents and their buyer client. Post a comment to this blog post, if you have a funny or deceptive staging story that you would like to share.
Yikes, times continue to be rough in the real estate market, especially for new home builders & lenders. Yesterday another good builder in central Ohio closed its doors for good. C.V. Perry & Co. has gone out of business due to serious financial troubles.
C.V. Perry & Co. was a good, solid builder that had been around for 60 years. C.V. Perry “folding up” was not as unexpected as Centex Homes leaving the central Ohio 
market last year. Centex Homes leaving our market was a total surprise to many people. I’m pretty confident that C.V. Perry probably won’t be the last builder in central Ohio to call it quits or to be bought out by a competitor.
Hmmm, let me guess, maybe Dominion Homes might be the next fatality. It seems like Dominion Homes has been hemorrhaging cash forever and has had a “ton” of lending problems (see additional links below). If you are new home buyer in this market please make sure you are protected. You need to make sure you fully understand your builders deposit policy. Don’t risk losing your deposit money. Contact a real estate attorney ASAP if you have any questions. Good Luck!
Additional info:
Dominion 5.9 million in red for 3rd quarter
M/I Homes post 21.7 million 3rd quarter loss
Dominion Homes sales drop nearly 25%
Beazer Homes report weak earnings
This is not Real Estate for Dummies. But, it probably should be. The basic definition of dual agency is “The same real estate agent is representing both buyer and seller in 
the same transaction”. Dual agency is the single worst issue involved in real estate. The average “Joe” out of the street easily understands that dual agency is WRONG. This seems like common sense to the regular guy. So, why can’t the politicians and many real estate agents & brokers understand this simple terrible concept? The main reason why dual agency exists is because of the glorious MOOLAH. Real estate brokers and agents have a huge financial incentive to be involved in a dual agency transaction at the detriment of their buyer or seller. Dual agency has no benefits to protect the consumer (buyer or seller). One of the simplest and best examples that I’ve ever read about the problems of dual agency actually came from a traditional real estate agent (Matt Difanis) in Illinois and not an Exclusive Buyer Agent. A few years back, Matt had a sent this letter to the Realtor Magazine.
Here is another real simple definition; agency is when a real estate broker discloses “who” & “how” they are going to represent a buyer or seller. Home buyers need to STOP spending all their time on the Internet looking at pretty pictures of potential homes and START spending more time fully understanding all types of agency (dual, single, transactional, limited or designated). Understanding agency is definitely not the most exciting part of the home buying process. As a matter of fact, it is down right boring. But, PLEASE, PLEASE, PLEASE; before you start down the path of buying a home make sure you spend time fully researching everything. As with many major financial decisions (car, home, vacation, etc.) most of us end up rationalizing decisions based on emotion, don’t make a decision based on emotion!!
Non-disclosed dual agency is ILLEGAL in all 50 states. But, only a few states have made (disclosed) dual agency illegal. Dual agency should be”outlawed” and made illegal in all 50 states. If you are a buyer or seller involved in a dual agency transaction and you don’t completely understand dual agency than you should immediately contact or RUN to your nearest real estate attorney.
Here are a few other good blogs and web sites that just say NO to dual agency: Bloodhound Realty & Homebuyer Representation
Representing People, NOT Property!
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 Energy Policy Act of 2005 offers generous energy tax credits to consumers and businesses that purchase fuel efficient cars and/or energy efficient items for their home. 
Homeowners can receive a tax credit up to $500. Homeowners that purchase and install certain energy efficient products for their home such as; windows, exterior doors, heating and cooling systems, water heaters, storm doors, insulation, etc. (see chart for more information) prior to the end of the year will be eligible for the tax credits. The energy tax credit program is scheduled to end December 31, 2007. So HURRY up and ACT now! A tax credit is more beneficial than a tax deduction. A tax credit reduces your actual tax amount due “dollar for dollar”. A tax credit can provide substantial savings to the homeowner. Click here for more information about tax credits from the Internal Revenue Service (IRS). Good luck and stop procrastinating. Uncle Sam wants to give you money for going GREEN!
Another great, informative web site to check out is the Energy Star Program.
My Buyer Broker Advocate! 
Cool Comments!