Why New Construction Might Make Sense Right Now

It's tough out there for Cincinnati area buyers: weeks and months of looking without finding the home the right home at the right price. Inventory is steadily dropping, and all the "good ones" seem to go pending before everyone has scheduled a showing. But what if you could customize your next home from the foundation up? There's a definite advantage to working with a builder to choose all the features and finishes you want in a new home, and while it does take time, it also provides you the opportunity to budget appropriately for your new home ownership costs -- and if you have a home to sell, you'll have plenty of time to decide what improvements your current home needs to sell for the highest price possible.

So, why work with a Realtor when you are buying new construction? Because every buyer deserves representation to make sure their interests are being protected. Plus, only a Realtor can give you up to date information on the market to help you decide whether any of those cool upgrades will be worth the money when it comes to selling your home down the line.

For more information on buying a new construction home, check out these articles from Redfin, Forbes, and Huffington Post. And remember, the best local builders are members of the Home Builders Association of Greater Cincinnati.

Do I need a home warranty?

There is a lot of information in your average residential purchase contract, but one item that trips people up pretty frequently is the home warranty. You're already getting homeowner's insurance, so why on earth would you need a warranty, and why would the seller be willing to pay for it?

Your homeowner's insurance policy covers damage to your home and some things on your property, such as the tree falling on the car in the driveway scenario (which hopefully only happens in commercials). However, it probably doesn't cover your furnace, hot water heater, or appliances. That's where the home warranty comes in! Home warranties are becoming more common, with many sellers offering to pay one year of coverage for a prospective buyer, especially since many warranty companies will cover the home during the listing period for free if the home warranty is purchased at closing. The price for a year is usually between $400 and $500 in the Cincinnati area, with additional premiums for multiple HVAC systems, septic tanks, and other less common features. An added bonus: You can apply for a home warranty at any time, not just when you're buying or selling your home. 

Not all home warranties are created equal. Comey & Shepherd works with HMS Home Warranty because they have a solid reputation for good service, but there are a lot of options out there so be sure to talk to your agent for advice. And if you have a little extra income, the best alternative to a home warranty is setting aside money each month for a home emergency fund. There a several ways to calculate this, but several sources suggest saving 1% of your home's value a year, or 1/12% each month.

5 Spring Home Buying Strategies | Realtor Magazine→

Spring has sprung and both buyers and sellers are experiencing a fast-moving market! Inventory is still low, so getting out and seeing homes as soon as they come on the market has become increasingly important for buyers. To be truly prepared, make sure you have chosen a lender who can provide you a pre-approval letter on demand. You'll also want to know which home inspection company you'll use and whether you need a real estate attorney to assist you in understanding any potential legal issues.

A great way to start this process is talking to your favorite Realtor for referrals to all of these professionals and more -- general contractor? local lawn service? -- so you're ready to jump on the right house when you find it. Even if you enter a bidding war, which is pretty common at the moment, you can be more confident knowing you have the support of a knowledgeable team.

For the full article, just click on the title link!

Want To Buy That $40,000 Home? No. You Don't.

You've all heard the stories -- finding that gem of a foreclosure way below market price that only needs a new furnace and some cosmetic updates, bought by a savvy investor or lucky owner-occupant. Have you been hoping to find the $40,000 property in a $100,000 neighborhood that only needs a new roof, not a new foundation? I'm here to tell you that the likelihood of that happening anymore is very, very small. Infinitesimal. The homes I've been showing in Hamilton, Clermont and Brown counties that are in this price range are not worth fixing up -- you will never ever get your money back. Sounds harsh even to me, but there you have it. That's the bad news.

The good news is this: if you have an income that has been nice and steady for the past two years, average credit, and the will to commit to home ownership, qualifying for a mortgage is probably MUCH easier than you think. Plus, there are plenty of low down payment mortgage options for you to choose from: FHA with 3.5% down and recently lowered mortgage insurance premiums, USDA in many rural areas with 0% down payment, VA loans for veterans of the military with no mortgage insurance premium, the new Freddie Mac Home Possible Advantage with 3% down -- many lenders are even offering 5% down conventional loans.

Will you end up paying more for a house if you make a smaller down payment? Yes, probably. Unless you make extra payments and pay down the principal balance over time. But it still beats renting, and as long as you take good care of your home chances are you will see a return on your investment.