Cincinnati Real Estate - Ohio Houses

Mortgage Decisions

Some general rules of thumb:

1. IF YOU CAN - put 20% down so you won't have to pay mortgage insurance each month. Consider NOT putting more than 20% down, especially if it would involve disrupting investments earning more than about 8%/year.

2. The longer the interest rate is locked in, the higher the rate will be. If you know you are not staying for 30 yrs., consider an adjustible rate mortage with a lower interest rate!

3. Certain mortage companies specialize (compete) more for certain types of loans. DEPEND ON YOUR REALTOR to help direct you to the company who is most cost effectively going to take care of you and your situation.

Interviewing Realtors

The agent you select should be a member of the local Board of Realtors and a subscriber to the Muliple Listing Service. Their real estate practice should be a full time career for them. Two or more years of experience is a plus but not critical if the individual and has business experience in a related field.

Interview several agents for the job of representing your interests. Don't hesitate asking for some recent references. A professional agent should present a resume and some information about their company. They should describe how they will market your property and include an advertising schedule. The agent should show confidence in making recommendations to you regarding any "fix up" projects that should be done before showing the home.

The agent should present you with market information which will help define the value of your home. This should include sales within the past 6-12 months as well as a close look at what is currently listed for sale. Look at this information critically, as if you were the buyer. Don't choose your agent based upon who gives you the highest estimated selling price for your home! Be sure that there is actually market information which logically shows support for your listed price. A good listing agent will organize information about your home and the recent market which will give the buying public the confidence to pay you a fair price for your property.

Ask each agent that you interview several general questions and listen for their style of doing business. Your questions might include: How will you handle a multiple offer situation on my property? What if an interested Buyer must sell their home before they can close on ours? How do you make sure the Buyer can qualify for financing? You will have other questions of your own. Listen for the content of their replies but also for language skills, clear thinking, and communication style.

What if you are interviewing an agent to help you purchase a property? This agent should be familiar with the neighborhoods you searching. Have they ever sold property in these areas before? Ask questions regarding your financing options, their availability to tour homes at your convenience, and have a discussion about Ohio agency law with regards to buyer representation.

A good buyer agent will search for property at your direction, critically appraise the property you select, help you negotiate the terms of your contract and help locate the best type of financing for your needs.

If you choose to work with a friend who is a Realtor, define the nature of this business relationship so that your friendship is guaranteed to survive what is sometimes a stressful process. Interview them as you would anyone else and expect them to honor the significance of your buying or selling goals.

Whether you are looking for an agent to represent you when buying or selling -- he or she should be honest, hard working, have enthusiasm for their work, and possess great communication skills.

School District Data

Give me a call or email me your request. Include your mailing address, I like to send these regular mail because its such a lot of information and worth saving. My information is updated quarterly.

If you are moving across country and would like school info for your destination - let me know. I'll get you everything you need, including a top REMAX agent contact in the city your moving to.

Owning Two Homes

It's risky to buy a new home before you sell your old one. But, for some home buyers the benefits of buying first may out-weigh the risks.

Before proceeding, carefully consider the pros and cons. Suppose it takes longer to sell your current home than you anticipate. Also, your home could sell for considerably less than you think it will.

Do you have the financial resources to cover these unknown situations? Budget conservatively so that you're not caught short of the cash you'll need to survive until your old home sells and the transaction closes. Detailed research on the pricing of your home relative to the current market will reduce your risk and your stress.

Despite the risks, there are numerous benefits to buying first. First, you know where you'll be going and when. And, you know how much you'll be paying. Your offer will be stronger to the Seller you purchase from when you show them that you are capable of closing with them prior to your home selling. Very few owners will accept a "contingent upon the sale of current home" clause.

If you've outgrown your current home, you may improve its market appeal by moving your family and most of your possessions out. Left with minimal furnishing, and a little staging for sale, your home might show better and sell faster.

Preferring to buy first is one issue. Affording it is another matter. Most buyers need to liquidate equity from their current home to buy the next one. Taking a loan out on the existing home (bridge loan) is one way to get access to the cash. A loan from relatives is another.

Once the cash down payment hurdle is crossed, you'll need to have enough income to qualify for a mortgage on the new home without having your current home sold. Many lenders are more lenient on their qualifying ratios (they'll allow more debt than usual) if the high debt is because of a second mortgage payment, and not due to consumer debt. You may have to show the lender that your existing home is listed for sale.

In a hot market, you will want to prepare yourself to purchase without selling your current home in case a great house becomes available.

In a slower market, you could have time to attract a buyer for your home and then write the offer on your new home "subject to the successful closing of our current home, scheduled for __________." Many owners will accept a clause like this once your home is under contract and your buyer has been approved by their lender.

Please give me a call to discuss the current market and the best strategies for your family when shopping for your next home. I'll help you understand your risks and protect your interests every step of the way.

Tom Tobias - REMAX Unlimited
Your call will be promptly returned