You Know You’re A Subprime Loan Candidate When…

July 31st, 2007 Bank-Owned/Short Sale Homes, Cartoons, Columbus Buyer Info, The Bad No Comments

Remember Jeff Foxworthy’s famous line “you know when you’re a Redneck when…?” 

Well, kudos to Broker Outpost for a compendium of real-life statements of people who really shouldn’t be buying a home. (These guys are part of the problem of the ongoing implosion of subprime lenders…)  Here’s a few goodies:

• The borrower calls in and has a f i c o ( all spelled out) of Four.
• When the Borrower doesnt know their loan amount, interest rate or mortgage payments.  
• You think your medical collections are Credit references.
• When you make your car payment but not your house payment.
• When your best trade line is Fingerhut (a mail order company that sends out magazine catalog and EVERYONE gets $300 of credit. The only place I know of where you can buy a $10 toaster for $35 then make $70 in payments…)
• You have 25 tradelines and they are all collection accounts.
• You spend your closing costs money on a motorcycle 2 days before closing.
• You are cashing out your equity to go on vacation. Again.
• Your fico score and total assets are the same number.
• When the lender used for your purchase is now out of business and now you can’t get out of your 80/20 that is about to adjust to 12%.
• When you take the competition’s 7.375 loan paying 2 discount points instead of the local loan locked at 6.875 paying nothing, even after being shown the numbers . . .because you “like your privacy, and the lender you called on the phone way out in california doesn’t know where you live” ?????
• When you get the same call off of the same advertisement from a homeowner who just used you to refi two months earlier.
• When you have 5 applicants for the same loan and the highest middle score is 530 and they all want to go stated.
• When the borrower tells you if they pay for the appraisal the loan has to go through and fund because they will definately be late next month.
• When you don’t own your house (99+ ltv), have no equity, can’t afford current payment, expect there to be no closing costs and want to go stated income.
• When you give a handwritten note that reads “The chargeoff accounts are not mine.” for verification of supposed fraudulent accounts.
• When you refuse to payoff your (4) American General or Citifinancial high rate revolving loans because ” they’ve been good to you.”
• When your borrower has a 591 credit score and you tell her she doesn’t have A paper credit for the A paper rates she is looking for. She gets insulted and tells you that 591 is a great credit score and she had no problems getting her 2/28 loan 2 years ago with a start rate of 8.5 that’s due to adjust to 10.5.
• When your appraiser takes photos of the subject with the ‘for sale’ sign in clear and plain view.
• When you ask your borrower for his last 2 tax returns he gives you 2001 and 2004 (because he ain’t filed the rest yet).
• When your borrower calls and asks you to bail him from his foreclosure, but when you pull public records, the house was titled to the bank 6 weeks ago.
• And last of all…. You know you are subprime when: the borrower asks if they still have to pay their mortgage and bills since they are going to be paid off. 

Home Sellers- How Does YOUR Home Look On The Internet?!?

July 29th, 2007 Columbus Buyer Info, Columbus Seller Info, The Bad No Comments

Selling a home?  You’d better check out what your listing Realtor has done with your house on the Internet.

A huge pet peeve of mine are homes that are listed for sale and either have no photos, or only 1 photo online.  I’m not alone– many buyers I work with tell me they will pass over homes like this, with the reasoning that ‘something must be wrong, or there would be inside photos.”  I helped a couple buy a home that actually was in fabulous condition, but had been on the market 182 days with no offers.  I know if there had been photos online, this home would have sold in the first 30 days (a good thing for my clients that it was still hanging out there!).

Sooo….. Why do realtors DO THIS?  There are several reasons:
1. the home really IS that bad… and photos would only scare buyers away
2. the realtor is too lazy to take the photos
3. the realtor does not know how to use a digital camera and upload to the Internet
4. the realtor is too busy and doesn’t think it’s necessary
5. the seller is adamant they do not want photos of their home online
6. the realtor just didn’t ‘get around to it’ and put the home online…. and maybe, one day, will add the photos

I’m taking the gloves off here….. if you want to sell your home, and you don’t have multiple photos online the day your home is listed, you’re not getting your money’s worth in marketing and it’s hampering the sale of your home. Period.

Those active, motivated buyers are going to glance at your listing when they get their ‘new home for sale’ notice and move on to the next one… they are not going to remember you and come back to see photos have been added.

I just looked at a 1.5 million dollar listing that’s been on the market for 7 days…. there is only 1 photo.  I’m sorry, but the owner of a 1.5 million dollar home has the right to expect decent marketing. 

Heck, the owner of a $150,000.00 home has the right to expect proper marketing.

I also saw 4 condos in Westerville that were listed at the same in 110 days ago… with only the outside photo.  I’d say that realtor had time in the last 110 days to get additional photos online…..

And don’t even get me started on the homes that have NO photos… like the one I showed south of town that was beautiful, had been expertly updated, was on the market 57 days… and not a photo online in sight.

Sellers– before you select a realtor, ask them to send you ALL their active listings to you via email to review. Look at what is being done online. Ask that realtor what their average days on market are– for the past year, for the past six months. (Tip– if you can’t get this answer, that agent is not business-oriented enough to track this). Ask them how that compares to the Columbus Board of Realtors average. 

Columbus Ohio Area Home Sales - The Mid-Year Mark

July 25th, 2007 Columbus Buyer Info, Columbus Seller Info, Columbus and Central Ohio Home Sales Stats, The Good No Comments

How is the Columbus and Central Ohio market REALLY doing?  Here’s a look at the different communities and their home sales from January through the end of June- offically half-way through 2007……

For Homes with a Columbus mailing address:

4401 Homes sold in the first six months, with the average List Price being $132,212.00 and the average Sold Price being $128,064.00 - or 96.8% of the List Price.

Looking at sales in the same period for 2006, 4689 Homes sold in first six months of 2006, with the average List Price being $136,325.00 and the average Sold Price being $132,825.00 or 97.4% of the List Price.

Columbus is a HUGE market- here’s a ‘big picture’ look at the metropolis.  We’re running 3 for 3 in the red… down in number of homes sold, final sold price, and the List to Sale ratio. BUT note: we’re still getting a good List/Sale ratio of 96.8%.  In a future post, we’ll take a look at some of the communities within the Columbus area……….

For Homes with a Dublin mailing address:

568 Homes sold in the first six months, with the average List Price being $302,265.00 and the average Sold Price being $292,757.00 - or 96.8% of the List Price.

Looking at sales in the same period for 2006, 554 Homes sold in first six months of 2006, with the average List Price being $330,860.00 and the average Sold Price being $323,706.00 or 97.8% of the List Price.

Hmmm Dublin- up in number of sold homes, but down in the sold price and the List to Sale price….. an indication that the higher priced homes are having a tough time, but the intermediate homes are moving well….

For Homes with a Gahanna mailing address:
202 Homes sold in the first six months, with the average List Price being $215,436.00 and the average Sold Price being $204,354.00 - or 94.8% of the List Price.

Looking at sales in the same period for 2006, 227 Homes sold in first six months of 2006, with the average List Price being $189,855.00 and the average Sold Price being $185,682.00 or 97.8% of the List Price.

Whew-hoo, Gahanna… a few less homes sold, and it’s been a bit rougher in the net sale price, BUT…. WAY up in your average sale price…. that’s called Appreciation, folks!! 

For Homes with a Pickerington mailing address:

285 Homes sold in the first six months, with the average List Price being $218,708.00 and the average Sold Price being $212,081.00 - or 97% of the List Price.

Looking at sales in the same period for 2006, 328 Homes sold in first six months of 2006, with the average List Price being $208,953.00 and the average Sold Price being $214,424.00 or 97.4% of the List Price.

OOOPS– Sorry, Pickerington– your first comments were WRONG! Thanks to Sean Casey of This Week Pickerington for pointing this out (I goofed and thought the 2006 figures were 2007…) SOOO… you’re a smidge down in homes Sold, your average Sold Price, and your percentage of List to Sale price… BUT as you see in many of the other communities, we’re talking small numbers here. No cause for alarm……

For Homes with a Powell mailing address:

374 Homes sold in the first six months, with the average List Price being $329,923.00 and the average Sold Price being $319,389.00 - or 96.8% of the List Price.

Looking at sales in the same period for 2006, 354 Homes sold in first six months of 2006, with the average List Price being $334,018.00 and the average Sold Price being $325,564.00 or 97.5% of the List Price.

Ahem, Powell- more homes sold, but a blip in the average sold price and the List to Sale price ratio….  still, steady, strong movement, and DEFINITELY not a sign of any strong recession….

For Homes with a Grove City mailing address:

444 Homes sold in the first six months, with the average List Price being $155,017.00 and the average Sold Price being $149,654.00 - or 96.5% of the List Price.

Looking at sales in the same period for 2006, 474 Homes sold in first six months of 2006, with the average List Price being $151,932.00 and the average Sold Price being $147,665.00 or 97.1% of the List Price.

Goodness, Grove City- it’s a mixed bag. Down a bit in sold homes, up a bit in the sold price, and a sliver lower in the percentage of List to Sale price. Overall, holding your own, and moving along….

For Homes with a New Albany mailing address:

195 Homes sold in the first six months, with the average List Price being $385,003.00 and the average Sold Price being $371,018.00 - or 96.3% of the List Price.

Looking at sales in the same period for 2006, 180 Homes sold in first six months of 2006, with the average List Price being $453,978.00 and the average Sold Price being $436,850.00 or 96.2% of the List Price.

Wow, New Albany- more homes sold, but a HUGE decrease in average sales price… which shows that the higher priced homes are really struggling.  Interestingly, the List to Sale ratio is about the same….

For Homes with a Reynoldsburg mailing address:

296 Homes sold in the first six months, with the average List Price being $144,116.00 and the average Sold Price being $140,221.00 - or 97.2% of the List Price.

Looking at sales in the same period for 2006, 364 Homes sold in first six months of 2006, with the average List Price being $146,315.00 and the average Sold Price being $143,377.00 or 97.9% of the List Price.

Ouch, Reynoldsburg- you’re down in sold homes and the sold price… you’re feeling the pinch in the home market….

For Homes with a Hilliard mailing address:

458 Homes sold in the first six months, with the average List Price being $180,730.00 and the average Sold Price being $175,942.00 - or 97.3% of the List Price.

Looking at sales in the same period for 2006, 521 Homes sold in first six months of 2006, with the average List Price being $183,643.00 and the average Sold Price being $179,676.00 or 97.8% of the List Price.

Hey, Hilliard- a reduction in all three categories… minor losses, but something to rebound from.  Let’s see how you do at the END of the year…. 

For Homes with a Westerville mailing address:

628 Homes sold in the first six months, with the average List Price being $235,785.00 and the average Sold Price being $228,156.00 - or 96.7% of the List Price.

Looking at sales in the same period for 2006, 639 Homes sold in first six months of 2006, with the average List Price being $238,497.00 and the average Sold Price being $231,979.00 or 97.2% of the List Price.

It’s a close comparison, Westerville- your List to Sale ratio is a bit better (tighter Seller pricing), and just minor differences on homes sold and the final average Sold Price….

For Homes with a Worthington mailing address:

201 Homes sold in the first six months, with the average List Price being $220,753.00 and the average Sold Price being $213,866.00 - or 96.8% of the List Price.

Looking at sales in the same period for 2006, 204 Homes sold in first six months of 2006, with the average List Price being $210,950.00 and the average Sold Price being $206,015.00 or 97.6% of the List Price.

Well, Worthington… about identical in the number of homes sold, higher in the average Sold Price, and a smidge tighter in your List/Sale price ratio… well done!

For Homes with a Canal Winchester mailing address:

250 Homes sold in the first six months, with the average List Price being $159,219.00 and the average Sold Price being $154,495.00 - or 97% of the List Price.

Looking at sales in the same period for 2006, 245 Homes sold in first six months of 2006, with the average List Price being $162,505.00 and the average Sold Price being $157,744.00 or 97% of the List Price.

OK, Canal folks- you’re about even in the number of homes sold and your List/Sale ratio, with a slight reduction in your average Sold Price.  It’s about a wash…..

SOOO….. WHAT DOES THIS ALL SAY??  A couple of things- first off, the magic figure of 97% of List Price to Sale Price becomes evident.  That’s not bad… and shows that while there are bargains to be made, our properties are not being blown out the door.  So listen up, Buyers… and don’t expect to knock $30,000.00 off a $200,000.00 home because you think 15% is reasonable- it’s just not there to take.

Second, any decreases are mimimal.  We’re working with small numbers here… it goes back to the old Tortoise and Hare story… slow and steady wins the race. The Columbus market keeps moving along- at a slow and steady pace. When you hear about the extreme swings in real estate in the national news, understand that is what’s happening on the East and West coast, but here in good ‘ole central Ohio… it’s a different picture.

Want to know more about YOUR neck of the woods?  Contact Sondra and ask what’s happening in your specific area or neighborhood- she’ll be happy to share!

MORE Bank-Owned/ Short Sale Home Hurdles- Buyers Beware

July 24th, 2007 Bank-Owned/Short Sale Homes, Columbus Buyer Info, Columbus Seller Info, The Bad, The Ugly 3 Comments

I’ve written before on the many challenges of buying a Bank-Owned home or a Short Sale home (take a look at these links for complete details), but as I’ve worked with other owners trying to get to the finish line of an actual closing, a few more barriers have reared their ugly heads:

1. Some banks are requiring you to be pre-approved with THEM before they will even look at your offer.  If you’re pre-approved with another lender– too bad, so sad….

2. Some banks will ONLY allow a maximum of 3% of the purchase price to be given to the buyers for their closing costs and down payment assistance.  If a buyer (who has no money) is doing an FHA loan, there is a minimum of 3% needed for the down payment, plus there can be 2–3% needed for closing costs.  That necessary 5–6% of the purchase price eliminates them from the bank considering their offer.

3. Some banks are not allowing ANY buyer assistance to be included.  That’s eliminating a HUGE group of buyers……

4. Some banks (in a short sale) are charging the Seller with the costs of any buyer assistance (like closing costs or down payment).  This presents a HUGE problem… the Seller is selling the house because they don’t have the money to keep up with the payments.  The chances are very good that they also do not have the money to pay several thousand dollars on the buyer’s behalf….

I’ll be blunt– this section of the marketplace is meant for those rare individuals who have the cash to buy– and the banks are increasingly creating scenarios that focus on this type of buyer.  You’ve got to have money and be a bit of a gambler (all these properties are in as-is condition) to thrive in this challenge-ridden market…..

Lock Bumping - Is Your Home Safe?

July 16th, 2007 Columbus Buyer Info, Columbus Seller Info, The Bad 1 Comment

Lock bumping is a term home burglars are familiar with…. and you should be, too.  According to this YouTube news video (click here), 90% of home locks are vulnerable to this technique, where someone can use a special key to gain entrance to your home.

Medeco and Schlage locks are bump-resistant– so go check your locks and the name brand now.  (I personally know Schlage locks are good…. I once locked myself out of my home and had to get a locksmith.  It took him nearly 30 minutes to unlock the door with all of his tricks– and he said that Schlage is one of the toughest locks to pick.)

Fore-warned is fore-armed….. check out your locks today!

Attention Columbus House Flippers- Fame and Fortune Await!

July 11th, 2007 Columbus Buyer Info, Columbus Seller Info, Columbus and Central Ohio Real Estate Tid Bits, The Good 3 Comments

OK, all you people who love buying lonely houses and turning them into saleable beauties… The Arts and Entertainment Channel wants to make you famous!!

Flip This House, A&E’s #1 rated lifestyle show, has been to Charleston, Atlanta, San Antonio, and New Haven. Will Columbus be next??
813 Casting and Departure Films are conducting a nationwide search for the new cast of characters who will be featured on the upcoming season of Flip This House! Will it be your team?
“We’re looking for confident, charismatic, motivated and opinionated people who “flip” residential properties for a living. We want real-estate adrenaline junkies who love the high risk, high reward nature of their jobs and who are devoted to doing a great job!”
If you would like your team to be featured on the upcoming season of Flip This House, send an email to fth@813casting.com. Include your contact info, bios on you and your team, and some reasons why your team should be the next to be featured on Flip This House. Teams should consist of four or more people.

If you know of someone who’s in the house-flipping business, send them this information…. fame and fortune await!