Cleveland Real Estate News

I know you don’t want to waste your time when you are looking for a home.  Tackle the big issue first. What are you qualified to buy?  You might be pleasantly surprised.  Of course you could also be disappointed.  Find out first by contacting a mortgage lender who is able to give you an actual bona fide   pre- approval letter to use.  This means NO pre-qualification letters.  Yes, there is a difference.  A pre-qualification is, sadly, not worth the paper it is written on.  It means a lender has asked you a few questions, in order to get you on their hook, but it doesn’t mean you have answered enough questions to be sure you can get a loan.  When talking to a lender, please stress that you will not accept a pre-qualification, you need a pre-approval.  If that lender says they can’t get you one, then move on to another lender!  I don’t care if you’ve been working with one particular bank or lender for years.  Do not accept a pre-qual.  And while we are on the subject, if you come to me with an offer to buy one of my listings, I will not let you write until you get an actual pre- approval.

If you are one of my new buyers I will have advised you about this.  But sadly, I’m getting the idea that not all agents are willing to pass on their professional knowledge, and they accept this pre-qual and show homes. 

I know that my time is valuable, but I want you to think about this in terms of your time.  Why would you want to waste your time looking at homes if you can’t afford to buy one?  You can always go to open houses if you just want to see what’s ‘out there.’  Kill some time instead of going to a movie lol. 

Too much disappointment on the part of buyers who can’t buy what they want, sellers who may have even taken their homes off the market for several weeks thinking they had an accepted deal.  And yes, agents who would love to be independently wealthy and able to cruise homes knowing they are not going to get paid for their time anyway.  Speaking for myself, of course! 

Peace Out – 3C

It’s been quite a year for many of us, hasn’t it? On the plus side, I have had no health issues and for that I am grateful. I’ve also learned how much better a tough year can be with the support and love of friends and family.  Without them I would be bereft! 

I’ve learned that two full years of continuous daily exercise helps drop the weight.  By quite a bit!  My dog is a great companion, but also a big help keeping me walking, even if it’s raining or snowing. We walk an average of 2 miles a day (unless there is more than a few inches of snow).  There are even times now, when I want to walk and he looks reluctant lol.

I’ve learned a bit about tougher real estate deals.  Issues other people have spoken about that had not been part of my experience…until this year.  I’ve learned that you can have a few homes waiting to close and find them taking as long as the end of a Wagnerian opera  (if you’ve ever heard one, you get my drift lol).  I’ve had a lot of empathy for a few clients who had to suffer through short sales.  I’ve  worked short sales for years now, but for some reason, they seemed to stall in the Bermuda Triangle more often than not this year.  A few worked.  No matter how much I discuss how long it might take for a bank to say yes they accept the offer or no they do not, it still seemed to be painful for this year’s clients.  I have one client who moved here with a relative and they really, really need to move and get her settled.  I know that.  And still we wait.  I had one client move here from another state as well….she was much more patient than one would expect, but in the end, she had the ability to search for a new home and move into one that was not a short sale.  I still say short sales are not for the faint of heart.

I’ve learned that many more of my clients are people who are moving into NE Ohio, as opposed to people moving out.  I’ve seen more activity in Old Brooklyn this past year.  I’ve seen more activity in my neighborhood as well.  For a few years there, it seemed as if people had opted out of both neighborhoods (I’m in the West Park/Bellaire Puritas area).   This year, buyers were back. 

I’ve learned that social media is going to stick around.  That every few months there is a new flavor of the month: Google+, now something called Pinterest.  I find that Facebook is still my favorite social media site.  2012 also saw me go back to Twitter.  This year, I can tell, I will be spending a bit more time in LinkedIN.

I’ve learned that there are more good eateries in NE Ohio than I have time or resources to eat in!  But I will continue to try to test them all. 

I’ve also learned that the rental market is hot, no joke.  And no surprise if you think about it.  Some people need to rent after losing their homes.  Some need to repair credit and can’t buy either.  Some just don’t want to worry about owning, they want to rent.  Consistently seeing weekly requests for single family home rentals.

There are a few people with very intriguing home development ideas.  A  fellow agent is working on a plan to develop homes out of rail road containers here.  And his first set of plans is very cool!  I talked with a guy who plans on building a few really nicely designed town homes. 

And I’ve learned the best way to sell your home, no matter what, is to make sure it’s up on repairs, not overly cluttered (just heard the phrase this week: clutter eats equity…that is SO true).  And I’ve learned some heart wrenching stories from people getting their homes ready to sell because they are forced to (death in family, unable to keep up payments)  and their stress is palatable.

So it’s been a year of mixed experiences.  I’m tipping a virtual glass (clink) to all of you and hoping 2012 is measurably less stressful for NE Ohio, and for you and your families.  Peace.  3C

It’s not a top ten list, but I did read a few interesting things this month that got me back to this blog.  (I know, it’s about time).  I missed blogging, but I just wasn’t feeling  my way to doing it!

Best House Decoration Idea I’ve Heard or Read in 2011  This was something I read last Spring.  The idea stuck with me so I’m revisiting it here for you.  Wish I could remember where I read it!  It starts with us having old furniture, things we’ve collected that could be something else, and most importantly, the wish to update our home’s look without spending a fortune.

In spirit of a healthy environment, spending wisely and re-purposing: Host a party with a few friends. Each one brings a piece of furniture or collectible  from their home to strip, stain, paint, transform  into something else.  Have an old table top radio? I bet one of your friends can help you add a lamp kit to it for a cool change.  And you might be better at taking broken mosaic tile and re-doing another person’s coffee table top.  You get the drift! Everyone can make a day of it.  Seems like it would turn a chore into a fun day. 

Now to the sites with home decor ideas they found trending in 2011. 

I love the Lamps Plus gallery.  You have to check out the bike turned into a bathroom sink.  No,  I wouldn’t have thought I’d like it either, but I like it a lot!  I love the idea of accenting with the retro geometric patterns.  However, not sure I’m feeling the busily patterned wallpaper.  What do you think? 

Organic materials are definitely still trending strong and probably upward.  I don’t see this changing anytime soon.  Bamboo roman shades may not surprise you (they are nice, however). How about bamboo curtain and drapery hardware?   Very cool.  My latest thing (not that I’m a professional – just sharing!) is to put up rods that don’t match.  I also like the trend (I saw this several times in my NE Ohio home showings for 2011) of using cool things like skateboard tops for shelving.  HGTV has a photo gallery of window decor and hardware they feel represents the trend to new and enviro friendly materials.  

My last suggestion is a site called Houzz.  They see trending: grays in many shades, fiery wall colors as well (I love red/orange). There gallery of photos also features what they say is a return to using silhouettes as decoration.  I haven’t seen it, but like the photo they use as an example.

I saw (in real life home touring and in articles) a trend towards use of metallic, both in textured art as well as room colors and accent peices. 

Hope you enjoy this end of the year tour of 2011 home decor trends, and I wish for all of you a Happy New Year.  3C

If you are looking to buy in the wonderful neighborhood of Old Brooklyn, come to five different open houses today, all in close proximity: Willowdale, W.  36th St, Riverside and Trowbridge.  Follow the signs, and the open is from 1-3 PM !

The Rustwire.com  blog consistently impresses me. Today I read an article on the focus of economic development in NE Ohio, where it seems to be to this author (and many of the comments), and where she thinks it should be.  She has many good points, in my opinion.  Would love to know what you think.  One of the questions she asks is, should Cleveland companies get tax breaks only to have them move to the suburbs?   

The author feels the techie companies getting the economic assistance are health industry related.  And I love the reference she makes to economic development here chasing smokestacks.   Check it out  3C

I have clients looking to buy and they are looking to pay cash, not get a loan.  I just got another call today from someone looking to do the same. Both of these people are at different ends of the purchase spectrum (one for under $70k and one for $250k). 

Now here comes an article posted tonight on the PD talking about how cash purchases are up.  They also highlight a family who purchased because they are retirees who had to take a cash payment from an account and bought an upscale home with the money.

It is seriously a good time to talk to a tax accountant, your financial advisor, and your family, and see if this is also a good idea for you. 

3C

Chase is a large lender with many properties in foreclosure. And they have their share of homeowners who are asking to be considered as good candidates to short sale their homes. Amy Hoak’s MarketWatch article is an interesting because it gives specifics on formulas used at Chase, some incentives they could provide, and why they reject some requests as not profitable or workable.

I have more clients requesting short sales this year than prior years, and the important thing is getting that lender contact so I can get a short sale package and at least know that we are working towards a common goal, not trying to push a rock up a hill without the possibility of a good result!

One agent from Virginia is quoted in the Market Watch article. She had a client who offered  over 300k on a home and the lender rejected the short sale, preferring it go into foreclosure.  They determined it would be better for them financially to foreclose.  Well, it sold a while later for much less.  Believe me, this has happened to my clients as well. 

The article also points out that the short sale process has ‘sped up’ a bit.  This is true, but not across the board. Many lenders, for example, are now doing their short sale or foreclosure work using on line transaction systems.  This helps a lot (and my company, Howard Hanna, is now using a similar on line tracking system that allows for faster responses on how things are progressing).  So yes, this has helped a lot.  But it still doesn’t apply to all lenders, and it still does not guarantee the short sale offer will be accepted.  But if you are game, and willing to wait, and also to accept that in the end you might be back out looking for another property, you might be a good short sale buyer! 

3C

Market Watch  covers a few points about the psychology of home buying and selling in an Amy Hoak article about low ball real estate offers.  Many good points that can be summarized by saying, make sure you know what your willing to pay to buy a home (and what you can afford), make sure you know what you need to pay off your mortgage if you are selling a home, and generally understand the market values of the area (your agent can guide you with professional advice about this).

One point made states ‘don’t offend the seller or they won’t work with you.’ (I paraphrased).  Another point explains why you don’t want to offend the seller.  Both points are well taken. A house may be fairly priced to sell but there are not many sellers who don’t realize a buyer is going to come in at a lower offer price.  I don’t know too many agents who won’t come in with an aggressive offer.  The key is, as the article states, to know your market and be sure to present the offer with an explanation for the offer price.  Fair enough. 

It’s also an article that infers having really good discussions with your agent before you ever wind up writing an offer on the house.  If you’re making an FHA offer and you know the seller is going to have to make a few repairs to get it up to par for the FHA appraisal, factor that expense into your offer price ahead of time. 

I like to advise my clients, when writing an offer, to think about what their ‘best and highest’ offer would be.  It could vary house to house, based on amount of work needed to move in or on just how wild about the house they are.  And of course, unless you are in multiple offers, you don’t have to offer your best and highest amount.  Just know what it is ahead of time.  Much less stress when you think of all the angles going into the process.

I personally hate, hate, hate the word low ball.  I also hate the phrase ‘I’m not going to just give away my house.’   First, low ball offer.  The phrase itself is insulting.  Buyers are making what they consider a fair offer price and sellers have to decide if they will accept it or counter back.  Why this phrase has to be continually used baffles me, because it sets up a mindset of a confrontation (or yes, an insulting offer!) when that is not what is happening.

The ‘I don’t want to just give my house away’ phrase is so over used by sellers! Please help me out by not using it anymore!  No one, not me, not other agents, not people interested in buying your home, wants you to just give it away.  We all want you to get a fair market value for your house, based on it’s condition and location.  But  we might come to you with an offer that is lower than your asking price.  And we will tell you why (if I am presenting the offer, anyway). 

The sign of a good article is one that gets you thinking and apparently, from my standpoint, this was a good article!  I hope you enjoy it too.  3C

And even if it sells in 2012. The Debt Relief Act allows you an exemption on owing Federal income tax on the forgiven amount.  This is important! And good news.

If you owed 150,000 and sold your house for 120,000, you will not owe taxes on the 30k difference. My suggestion is to check with your financial advisor, H and R Block, anyone, just be sure.

Quote from the article that just appeared on the PD website:

“…people are potentially eligible only if the debt involves their primary residence, and only for debt used to buy or improve their home….”

The “Act” is officially called Mortgage Forgiveness Debt Relief Act and Debt Cancellation.  Much more detail on the .gov link – and it applies to your principal residence only.  So if you are selling an investment property, you will probably owe taxes, unless you also live in one of the units of that property. 

Unless it gets extended, this Relief Act is good only through the end of 2012.     3C