Real Estate Information

According to a report from the Cincinnati Area Board of REALTORS(r), local home sales for October – at 1,382 units -- were up 25.1% over October 2010. It was the fourth month in a row of increased sales on a year-over-year basis.

Last month’s average price was $142,893, compared to a year prior of $158,832. Average price
for the first 10 months of 2011 was $152,188 compared to $159,228 the same 10 months a year ago.

The Cincinnati area housing market currently has 9 months of available inventory compared to
nearly 13 months a year ago. A balanced housing market has 6 months of inventory. Therefore, buyers
have the advantage in today’s market.

According to BankRate.com the average rate for a 30 year fixed mortgage in Greater Cincinnati is 4.02%.

If someone is renting in today's environment, it might be worth considering home ownership.

Over the years I have learned that in every business venture, and in many life situations we are negotiating. Most of us learn negotiations as children with our parents. Mom offers a special treat if we finish our spinach. Dad might get that special toy for me if I get good grades. As we get older we learn how to turn these negotiations in our favor and suddenly Mom and Dad are at our mercy! Dad if you let me get that new smart phone you will be able to get a hold of me to make sure I am where I'm supposed to be, and besides, if I am in an emergency I can call Mom.

Our negotiation skills can determine success in our business life, our personal life, and in our financial life.

Here are a few tips on negotiating from a REALTORS(r) perspective, but first a short story:

One of the best salespeople that ever worked for me was horse trader from a very young age, he was around negotiations all of his life. He told me "Ron, when it came time to feed the horses and they were way off in the field grazing, I would shake the feed bucket, they would lift their heads, look at me and go right back to grazing. You see, they were too far off in the field to make it worth the trip back to feed. However, if I would take just 10 steps closer to them and shake the bucket again, they would come to me."

What I learned from this lesson is this, sometimes you just need to take a few steps toward the person with which you are negotiating in order to get them to come to you.

Tip # 1  Do your research! Why are they selling? More importantly, what is their motivation? A transfer in jobs is the why, however, the transfer of jobs because it is closer to family is the motivation.

Tip #2  Decide your limit before the negotiation. What is the property worth?  What are market conditions in the area? What is your exit strategy?

Tip #3  Be reasonable in your expectations. Not every situation will end up in a home run, sometimes you will need to settle for a single.

Recently I had a client write an offer on a home that seemed to have an active mold problem. We suspected a problem because of the odor and decided to have a mold inspection performed. Although we couldn't see the mold,  the inspection confirmed our suspicion. There were multiple colonies of mold in areas that were not visible. Inspections are much more complicated in today's real estate market than the past, if you have any doubts, have the house tested, your health might be at stake.

For more information regarding mold, please visit my website and get the free report "10 Mold Facts for todays Homeowner"

Courtesy of Ron Adams, Bastion REALTORS(r)  website www.bastionrealtors.com

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.