Do You Bank Online? You May Want to Read This!

If you do most of your banking online, or with a financial institution that doesn't have a physical location in your state, chances are it hasn't really bothered you. I've been banking online since 2004 and since I hardly ever need to write a check or talk to my bank, I just get that higher interest rate for savings and no-fee checking that I love.

When you're buying a home, though, you're going to need certified funds -- and some lenders will require that the funds come from your own bank account to make sure you're using your money and not a gift. Certified funds usually means a cashier's check...which is usually requested in person at a bank branch...which you don't have. And you don't usually know how much you need to bring to closing until the last minute!**

So here's a Pro Tip: make sure your financial institution can perform wire transfers, which is another commonly accepted form of certified funds. Learn what the rules are for different amounts (do they need a written request for transfers over $5,000?), what the fees are, what type of documentation they provide as a record of your request, and whether they can guarantee the deposit will be made within a few business hours (or better yet, immediately!). Do it before you even sign an offer on a home, and you won't have to worry about it when it comes time to close.

** This August, new regulations will be implemented requiring all buyers using a lender to purchase property to receive their closing documents at least 3 days prior to closing, which hardly ever happens right now. But more on that later!

How Could Technology Help Buyers & Sellers More?

The standard residential purchase contract for the Greater Cincinnati Board of REALTORS (and the Dayton board as well) was updated this year to be 7 pages long. Add to that the other required forms, property disclosures, and any addenda that might be necessary, and the average purchase packet is closer to 15 pages! The good news is that all of this can be reviewed and signed electronically (unlike all those documents at closing -- I suggest buying your signature stamp now). And your earnest money check? You can send a photo to your agent to pass along until the contract is accepted and you need to turn over the real thing.

Technology is making today's more complex real estate transactions easier and faster to execute than ever before. You can search for a home, find and contact an agent, collaborate with them on potential matches, share your favorites with friends & family to get their input, sign and negotiate a contract all from your phone. While on vacation. In Belize! And your agent can access the MLS listing, view the tax and property history, schedule a showing, write the contract, send it out for signatures, and negotiate on your behalf with the same device, all while holding an adult beverage in the other hand. But how much does your agent use these great technologies, and how much do they know about keeping your electronic communications secure?

As of 2014, the median age of REALTORS was 56 years old, which is over 20 years older than the median age for US workers. Technological innovation in real estate is happening, but it's not being fully embraced by enough agents to figure out what really works. For instance, at a forum I recently attended for agents under 35, the 12 agents in the room had used a combined total of 5 digital signature platforms and avowed that most of them aren't that great for how we actually work. 

So, I put it to you. How should you or your agent be able use technology to make buying or selling a home easier?

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.