Joe Peffer's Columbus Homes Blog

This Blog Has moved to its new Home

2006-08-30T12:00:00.001-04:00

UPDATE: This post is several years old now. I'm Joe Peffer - a Realtor in Columbus Ohio and I've opened my own brokerage which you can find at http://www.DeliciousRealEstate.com.

No matter what I do, this post always seems to be the first search result for my name, Joe Peffer so also know that you can find my personal take on Local Columbus Real Estate markets at www.ColumbusHomesBlog.com
where you can read all about home buying, home selling, the greater Columbus Real Estate market and more.

Thanks so much for visiting.
Joe Peffer
joepeffer@DeliciousRealEstate.com
614-940-9100

Mortgage Rates drop -again - a bit - for now

2006-08-03T16:48:00.000-04:00

I don't pretend to be the Chairman of the Federal Reserve board or have a Masters degree in marketing.I am pretty knowledgeable when it comes to Mortgages and home buying/selling money matters but let's face it, it's not my area of expertise.

That's why I occasionally post things like this. I think it's important that buyer's be aware of what the rates are but not panic or become overly concerned with rates.
They go up. They go down.

What do you want in a home and how much are you comfortable paying every month on your mortgage -- that's where I always start.

Speaking of mortgage expertise, I will be bringing on a regular contributor to the blog who does have expertise in the mortgage area -- Jeremiah Arn, of First Place Bank, will be writing regular contributions to the blog regarding home financing.
He will shed some light on major and typical issues buyers and sellers might want to know about and probably quite a few issues they never thought of but find extremely useful -- not unlike how I hope my Columbus real estate postings are regarded.

In the meantime, here's the news of the day---

"Long-term mortgage interest rates sank further Wednesday, and the benchmark 10-year Treasury bond yield dipped to 4.96 percent.The 30-year fixed-rate average fell to 6.14 percent, and the 15-year fixed-rate dipped to 5.84 percent. The 1-year adjustable held at 5.42 percent.The 30-year Treasury bond yield decreased to 5.05 percent.Rates are current as of 7:15 p.m. Eastern Standard Time.

Why might rates fall? Maybe it's the economy. . . . .

Mortgage rates fell for the second consecutive week as slower economic growth eased inflation concerns, according to surveys conducted by Freddie Mac and Bankrate.com.In Freddie Mac's survey, the 30-year fixed-rate mortgage dropped to an average 6.63 percent this week, down from last week's average of 6.72 percent. The average for the 15-year fixed-rate mortgage also sank from last week, falling from 6.34 percent to 6.27 percent.Points, which are fees charged by lenders for loan processing expressed as a percent of the loan, averaged 0.3 on the 30- and 15-year loans.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 6.27 percent this week, with an average 0.4 point, down from last week when it averaged 6.35 percent.
The one-year Treasury-indexed ARM averaged 5.69 percent, with an average 0.7 point, down from last week when it averaged 5.78 percent."Second-quarter Gross Domestic Product (GDP) came in weaker than the market had expected.

This means inflation is less of a threat, and that translates into lower mortgage rates," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement."Although lower rates are a welcome sight, we still feel that the 30-year fixed-rate mortgage rate will drift up and down somewhat over the next few months, but will average less than 7 percent for the year."In Bankrate.com's survey, mortgage rates declined for the third time in the last four weeks on the heels of slower second-quarter economic growth.

The average 30-year fixed-rate mortgage fell to 6.65 percent, the lowest since April 26, and these loans had an average of 0.3 discount and origination points.The average 15-year fixed rate mortgage, popular for refinancing, dropped by a similar amount to 6.3 percent, according to Bankrate.com. On larger loans, the average jumbo 30-year fixed rate declined to 6.86 percent. Adjustable-rate mortgages also declined, with the average 5/1 ARM sliding to 6.36 percent, and the average one-year ARM retreating to 6.03 percent.Validation that the economy did indeed grow at a slower pace pushed mortgage rates lower this week, Bankrate.com noted.

The initial Gross Domestic Product for second quarter revealed a growth rate of 2.5 percent, but mortgage rates have fallen by one-quarter percentage point in the past month on mounting evidence that the economy is downshifting. Slower economic growth increases demand for long-term government bonds and reduces fears of inflation over a long horizon. Both send Treasury yields lower, and mortgage rates are closely related to yields on long-term Treasury securities.Bankrate.com noted that fixed mortgage rates are nearly three-quarters of a percentage point higher than one year ago.

One year ago, the average 30-year fixed mortgage rate was 5.91 percent, meaning that the monthly payment on a loan of $165,000 was approximately $980. With the average 30-year fixed rate now 6.65 percent, the same loan originated today would carry a monthly payment of $1,059. Despite recent increases, fixed mortgage rates remain an attractive refinancing alternative for adjustable-rate borrowers facing sharp payment adjustments

Transitioning the blog

2006-07-07T15:29:00.000-04:00

I am in the process of transitioning this blog to a new address that will be able to stand on its own and still be more integrated into my suite of websites.
When it's done, the address will be ColumbusHomesBlog.com.
While isn't quite ready yet, you can take a sneak peek at it here:
www.ColumbusHomesBlog.com/index.php

Soon I will be posting to that site only (and it may already have some other specific postings this site doesn't) but I will never delete this site.

I anticipate using the new site exclusively By August 1, 2006.

Taxis, Fares, Downtown Columbus

2006-07-07T14:43:00.000-04:00

One of my main gripes about downtown and Columbus in general, is the lack of public transportation. While Cota does everything it can, it's not easy to catch a bus on the weekends. There's no train, there's not a good way for convention center visitors to get out of their immediate area.

I'm more concerned with the transportation issues of people who live downtown. Again, it all comes back to quality of life. IF you live downtown, and if you work downtown and if you shop dowtown, could you truly live your life carless in dowtown Columbus?

Midwesterners like us don't get the concept of not having a car, that's why people bristle at condo projects with no parking. Cabs are a very important part of life in a metropolis. Taxis often go unnoticed but I am positive they will begin to play a much bigger role downtown as more and more people move there.
That said, I have noticed an increase in taxis patrolling the downtown area. Not too long ago, you'd have to hoof it to a taxi stand if you needed a lift as opposed to sticking out your arm and flagging one down. Blue Taxi in particular seems to have really stepped it up downtown. I noticed this especially when walking through downtown on the way to and from Comfest a couple weeks ago.That bodes well for the future of downtown.

Sure, streetcars aren't a bad idea-- but hey, hop into a cab and you're off. Cabs exist now. Cabs aren't too expensive. A marketing campaign from a smart cab company would cost a lot less than the materials and infrastructure for streetcars that won't even go East and West of downtown - the two areas that need residents and businesses the most

.Excerpts from today's dispatch. . . .
Meter running on request to raise taxi fares
City Council to decide Monday on first rate increase in 6 years
The council in February 2000 approved a dime increase for every two-ninths of a mile that the passenger travels, at a time when gas was around $1.40 a gallon.
Given that gas is now closer to $3 a gallon and the cost of living is undoubtedly higher, cabdrivers and company officials are trying to increase the cost of a cab ride in Columbus. The cabbies are asking that the basic fee for a cab ride start at $2.75, which would be 75 cents more than the current $2 rate.
They also want fares to go up from that by 45 cents, instead of 40 cents, for every two-ninths of a mile driven. "I’ve heard no objections. This is a very appropriate and important increase," Councilman Mike Mentel said.
"Sometimes we (forget) how important the cab industry is for local business." Columbus has 17 areas, the majority of them Downtown, where a few drivers can wait to pick up fares, . . . .But there should be more . . .

"I think we’re the only city in the world with a convention center that doesn’t have a cab stand at the center," he said before the hearing. "The nearest cab stand is at the Hyatt.
It’s crazy."Many times, cabdrivers are ticketed for driving too slowly as they wait for fares, said James Stofer, president of the Yellow Cab Co. The $35 tickets each add two points on a driver’s license.The council will vote on the increase Monday.
If approved, it would take effect 30 days later.
Friday, July 07, 2006
Jodi Andes
THE COLUMBUS DISPATCH
jandes@dispatch.com

Downtown Residence Inn construction starts after 18-month redesign delay

2006-06-30T16:08:00.000-04:00

This is from today's Business First.
I didn't realize this building by the corner of Gay and High was slated to be a Residence Inn. That's great news for the vitality of downtown since it's more central than most downtown Columbus hotels and close to some downtown Columbus condominium projects.
Additionally, they're saving an historic building and the hotel itself will be urban-cool because of the architecture.

Suite hotel finally gets off ground

Business First of Columbus - June 23, 2006
by Brian R. Ball
Business First
A North Carolina hotel developer and operator has begun the long-delayed conversion of the old Buckeye Federal Savings and Loan building in Columbus into a Residence Inn by Marriott.
Concord Hospitality Enterprises Co. and development partner Lubert Adler Real Estate Funds of Philadelphia expect to open the 126-suite hotel at 36-42 E. Gay St. by mid- to late-summer 2007.

Debra Adcock, Concord's vice president of operations in Ohio, said Columbus-based Ruscilli Construction Co. started the $23 million project June 19 after climbing development costs forced a redesign of the project over the last 18 months.
"The sheer complexity of redeveloping an 80-year-old building and increases in construction costs made us rethink and reinvent the design," Adcock said. "It took a significant amount of time to do that."
The partnership earlier completed demolition and removed asbestos from the building.
"The tough part is over," Adcock said. "Now we're into the fun."
The Residence Inn, she said, should complement the business Concord Hospitality does at the 149-room Courtyard by Marriott business-class hotel it has owned and operated at 35 W. Spring St. since 1994.
The Courtyard "is designed for business and leisure travelers staying for less than five nights ... whereas the Residence Inn is designed for customers staying five or more nights," Adcock said.
The Residence Inn has studio rooms, and one- and two-bedroom units.
The rooms include kitchens and living rooms.
"It's apartment-style living," Adcock said. Meeting the market
Construction of the Residence Inn starts two years after the former Adam's Mark on North Third Street was turned into a Renaissance Columbus, another Marriott-flag luxury hotel.
Real estate consultant Eric Belfrage said the addition of an all-suite hotel downtown will round out offerings for travelers.

"I think it's a fabulous addition to the market," said Belfrage, a lodging specialist with CB Richard Ellis Inc. "There's nothing like that downtown."

The Residence Inn will mark a 4 percent addition to the 3,151 hotel rooms downtown, meaning it should have little effect on center-city hotel occupancies, he said.
Belfrage said renovation of a historic building will add a cosmopolitan dimension to the downtown lodging market.

Adcock said a few details of the project remain in flux.
For instance, the size of the hotel's convenience store is not set, she said, and the developer has yet to secure a restaurant operator for an area off the lobby.
"The most difficult part of that is having the (restaurant operator) see the space," Adcock said. "They want to visualize the space before they commit to it, so we really need to get into construction."
The chief executive of the region's convention and visitors bureau said he welcomed the hotel's progress.
"We were a little concerned it might not move forward," said Experience Columbus CEO Paul Astleford.
He said the hotel, once complete, will add to the mix of hotels available downtown even if it's not close to the Greater Columbus Convention Center.
"I think it will get good play from convention groups because it's a good name and it's a good product," he said.

Stainless and Granite, blah blah blah

2006-06-28T14:45:00.000-04:00

Is is just me or does everyone and their mother have stainless steel appliances and granite countertops these days. It's become so in tune with "the hot new look" that I think it's neither hot nor new.
Yes, I still love the look and Yes I do consider it somewhat timeless but perhaps there'll be a day when today's stainless steel becomes yesterday's avocado green.

What ever happened to quartz becoming the new granite? Isn't it non-porous, essentially maintenence-free and has great depth and clarity? Just once I'd like to see a Columbus home advertised with quartz, even cement or soapstone countertops and stainless.

Yes, I have granite in my kitchen and it needs some maintenance and could be stained by wine, acids or oils. As much as I love my granite, I'm just looking for the next thing in Columbus Ohio real estate ads. I do like seeing non-black granites used in kitchens since black is far and away the color granite of choice. It seems to class up a kitchen a little if it's a lighter color.

Fastest growing cities are suburban; big cities lose population

2006-06-21T13:00:00.000-04:00

No surprise here. Big cities have been losing to smaller, blossoming suburbs and newer cities for years. Mostly for schools, services and organized green space. At the same time however, I thing it's fair to say that over the same last 5 years, central cities across the country have been seeing an increase in population and billions in upgrades. Here in Columbus, we are somewhat isolated from mass exodus due to the lack of blue collar jobs that could potentially be lost, the many colleges and universities, and the ease of life and cost of living here.

Some excerpts from today's AP story in the Daily Reporter . . . . .

STEPHEN OHLEMACHER
Associated Press Writer
06/21/2006

WASHINGTON (AP) - Elk Grove, Calif., wasn't even incorporated six years ago, and now it's the fastest-growing city in America.Bigger, older cities are losing ground.The Sacramento suburb grew by 11.6 percent last year, to 112,000 people, typifying the nation's appetite for open spaces, affordable homes and suburban living.
Once a rural farming community, Elk Grove has given way to sprawling development, fueled by a short commute to Sacramento and local employers such as Apple Computer

Americans have been moving west and south for decades, and last year was no different. All but three of the 50 fastest-growing cities from 2004 to 2005 were in those regions of the country, with many in California and Florida, according to Census Bureau estimates Wednesday. The estimates were for cities with populations of 100,000 or more.

Elk Grove was followed in the top five by North Las Vegas, Nev.; Port St. Lucie, Fla.; Gilbert, Ariz., and Cape Coral, Fla.All five are suburban, and all have fewer than 200,000 residents."We have a pattern that is consistent across the country," said Hans Johnson, a research fellow at the Public Policy Institute of California. "Families choose to move to areas where they can buy more housing for less money and often with better schools."

Americans also are moving away from many of the nation's biggest cities, though the reasons vary with the cities.People are following jobs out of struggling Midwestern cities. Others are leaving expensive Northeastern and Western cities in search of more affordable homes. And people are fleeing big cities everywhere in search of better schools.

New York remained the nation's largest city, with 8.1 million people. The city has added 135,000 people since 2000, but it lost 21,500 from 2004 to 2005, more than any other city.Detroit, with its struggling economy, has lost 65,000 people since 2000, the most of any city. Philadelphia, which has lost about 50,000 manufacturing jobs since 2000, has lost 54,000 people during the same period.

On The Net:Census Bureau: http://www.census.gov

Victorian Village in the short North to get some good looking homes

2006-06-20T16:14:00.000-04:00

The former parking lot never looked so good. I'm always amazed by how much can go in a tight spot. Urban Density is a good thing for Columbus.
excerpts from today's Daily Reporter article. . . . .

A new Plaza Properties development will bring 86 condominium residences to Victorian Village in the next year and a half.

The firm's latest undertaking, The Valerian in Victorian Village, will occupy a 1.7 acre site on Starr and Third avenues, on land that formerly was home to a parking lot used by the staff of the nearby Victorian Village Health Center.

Plaza acquired the property from Third Apollo Co. on Dec. 5, 2005.The Valerian will consist of four distinct housing segments.

-The Homes at The Valerian will feature five, three-story, two family duplexes. The 10 residences - 1,500-square feet each - all have two to three bedrooms and two-car garages with private entrances.

-The Crescent at The Valerian will be comprised of 30 two-bedroom residences fronting Starr and Third avenues. Six street-entry flats will measure 1,200-square feet each, 14 "crescent" flats and 10 top-level flats will be 1,075- to 1,600-square feet each. Eighteen units will have one bedroom, while the remainder will have two bedrooms.One parking space will be reserved for each of the street-entry and crescent flats, while the top-level flats each will have two spaces per unit.

-The Flats at The Valerian will consist of 30 common hall units, ranging in size from 825- to 1,120-square feet each. The building will have elevator service and each residence will have one parking space.The Carriage Houses at The Valerian, to be located behind the Homes, will consist of eight townhomes measuring 1,200-square feet each and eight flats at 900-square feet each. All the townhomes will have one-car garages with private entrances.

All the buildings are brick and stone, and several feature gables and large front porches - features that are popular in Victorian architecture, said Shane Bell, project manager at Architectural Alliance, The Valerian's architect of record.

A contractor for the project has not yet been chosen.The Valerian is expected to break ground in the fall, with construction completed in late 2007. All residences at The Valerian are expected to range in price from $180,000 to $375,000.

(picture curtesy of the Daily Reporter via artists rendering belonging to Plaza Properties.)

Section of Hamilton Rd. to get more lanes

2006-06-20T15:54:00.000-04:00

Gahanna is still continuing to grow and this can't be a bad thing for this particular stretch of Hamilton.

Increasing traffic in Gahanna prompts call to expand road
Tuesday, June 20, 2006
Jim Woods
THE COLUMBUS DISPATCH

The last two-lane stretch of Hamilton Road in Gahanna will disappear around 2012 and could have either roundabouts or a median strip.
Gahanna City Council voted 6-0 last night to move forward with expanding Hamilton Road to four lanes between Clark State and Johnstown roads.

In 1997, residents were successful in persuading the Gahanna council not to widen their road.
But the city continued to grow and a recent traffic study found the traffic count rose from 15,100 vehicles daily in 1997 to 18,800 vehicles a day in 2004 . And there are more vehicles coming, with projections of 34,000 daily by 2032.

jwoods@dispatch.com

Groups hope idea of public art takes root and spreads

2006-06-20T15:47:00.000-04:00

Speaking of Quality of Life issues while living in the big city of Columbus . . . .

Sculptures, murals enhance area’s image, backers say
Tuesday, June 20, 2006
Debbie Gebolys
THE COLUMBUS DISPATCH

Art in the Short North isn’t just for the galleries that line N. High Street.
Now, sculpture and murals are in a few nooks and crannies of the neighborhood and in little "pocket parks." But more public art could pop up soon in as many as 20 spots between Ohio State University and Downtown.

It’s the next stage in the upward transformation of neighborhoods including Victorian Village, Italian Village, Dennison Place and Harrison West. The effort instigated by a handful of residents and business owners is drawing backers like moths to a flame.

"Public art can give our city an identity," Wood told a recent Columbus Metropolitan Club luncheon audience. "We want to jump-start the whole city of Columbus."
Wood is one of the leaders of the Short North Neighborhood Foundation, a coalition of eight neighborhood groups that wants to raise $750,000 by 2008 for public art installations. One year into the campaign, they’ve passed the halfway mark with $390,000.

Rick Livingston, associate director of Ohio State University’s humanities institute, said he admires the grass-roots effort and will bring OSU’s backing to a public art summit this fall.
He hopes to draw as many as 80 participants from places including the Columbus College of Art and Design, the Columbus Museum of Art, Columbus Metropolitan Library and elsewhere. Among discussions will be whether the city should establish a public arts office, an idea that the Columbus City Council tabled most recently in 2003.

"I want to spread the word, beat the drum a little bit and get people excited about the possibilities," Livingston said. "I think it really is a rising tide and is an opportunity for people around the city to pull together and get things done."
dgebolys@dispatch.com

Dog park on tap for city; leash laws on pause

2006-06-20T15:39:00.000-04:00

Tuesday, June 20, 2006
From today's Dispatch. It should be noted that their is a Downtown Dog owners association rallying city hall for a dog park downtown. The city is considering donating some land to the cause but nothing is in stone yet. Ask me about where to make a contribution.
Also, it should be noted that this is a real story about real city life. People like to have pets and they like to take their pets to parks, it is absolutely a quality of life issue and it's important for those considering moving to Columbus, Ohio as well as those moving within Columbus.

East Siders, youÂll soon have a fenced dog park in Big Walnut Park to let your pooch run free.
But next year, dog owners likely will have to leash their dogs in Columbus parks during certain times of the day.
On July 12, the cityÂs Recreation and Parks Commission will consider administrative rules that would address leash laws for the parks and require dog owners to clean up after their pets there. Those rules would go into effect once all of the cityÂs dog parks are open, which should be in about a year, said Wayne Roberts, recreation and parks executive director.

The City Council voted yesterday to spend $250,000 to contract with Brookside Lawn Services to install fences and signs at Big Walnut, and pave areas.
The first city dog park, 3 acres north of E. Livingston Avenue and east of Hamilton Road, should be open by September, Roberts said.

The city also is considering dog parks at Three Creeks Park on the South Side and Big Run Park on the West Side.
The Clintonville Area Commission in March recommended a dog park for Anheuser Busch Sports Park on the Northwest Side, but Roberts said nothing has been decided about that location.

Mark Ferenchik THE COLUMBUS DISPATCH

What can go in a purchase contract and what cannot?

2006-06-20T15:17:00.000-04:00

A lender friend, Jeremiah Arn from First Place Bank, sent this:

WhatÂs up with Realtors who want to put a $1,000 seller credit on the HUD for (something ridiculous)!?! I have a deal right now and (an) agent is ready to lose the deal rather than give up . . . (the ridiculous thing). Do they think we give loans for (something ridiculous), or painting, or appliances, or cars, or trailers, orÂ.? I can understand wanting to have that in a contract because transactions outside closing or under the table arenÂt enforcable. But if you want market rates (by securing a Fannie Mae-salable loan) you have to play by the rules. . . .

It can be surprising to find the vast array of things that find their way to the purchase contract. If it's in writing, has signatures and deadlines and specifics, then itenforceableble. But lenders don't want financidecisionsons about home decor, landscaping, and credits for this and credits for that taking up space on the final HUD statement. They are concerned with details of the property transaction and the fees associated with the lender and title companies. The buyer and seller want a nice clean final statement too -- it benefits everyone.

I'll try to get some definitive statement from a title company representative on what can and what cannot appear on a final statement.

City Hop coming up after Saturday's Condo Hop

2006-06-06T16:16:00.000-04:00

City Hop

The Columbus Landmarks Foundation hosts the 7th annual City Hop on Saturday June 17th. Festivities kick off on the 16th with a Brewery District tour and kickoff party.
This year's City Hop will feature 19 stops, some essetially at one location, from condos for sale, to condos being built to apartments to a giant decorating store, Grayson's Living Ideas.

In addition, City Hop will feature "Lofty Ideas — a day-long series of short talks about how to create dynamic living spaces in old building lofts. Held in various City Hop tour stop locales and led by local artchitects, designers and other professionals. Topics include space design, urban gardening, storage and entertaining.

Cowtown Condos own monthly Condo Hop has visited most of these sites in the past and will visit others in the coming months. Don't be confused, the monthly condo hop is put on by me, Realtor Joe Peffer of Coldwell Banker King Thompson. If you haven't yet attended one and are interested in downtown columbus condos and dowtown columbus living, you should check us out the 2nd Saturday of Every month. As always, we leave cafe Brioso (corner of Gay and High) at 10 AM.

Who, then, is the Columbus Landmarks Foundation? -" Columbus Landmarks, the organization that produces City Hop, was founded in 1977 by a dedicated group of historic preservationists and local residents who were committed to preserving Columbus' architectural heritage. Since that time, Landmarks has played an integral role in educating the community, encouraging responsible public and private sector enhancement of historic areas and structures, and promoting the highest standards in the design and construction of new buildings and spaces. For more information, click here to get to our home page or call the Landmarks office at 614-221-0227. "

All this rain makes for a great time to see a home!

2006-06-02T14:12:00.000-04:00

It must be time for the Memorial Tournament and the Columbus Arts Festival.
The weatherman predicts a gorgeous weekend though, so hang in there.

In the meantime, I should point out that looking at homes during a downpour (as I have the last couple days) is a great time to discover some basic truths. It's especially nice to take a look at basements and discover the truth to the seller's property disclosure statement that reads something like this: "During very heavy rains, there is a small trickle of water that runs to the drain from the southwest corner of the basement."

Of course you have to take them at face value if you see the home on a nice sunny day and only discover after you move in that the trickle is more like a torrent of water that moves your dryer three feet.

Take a look in the attic too. If you are especially interested in the home and access is available, take a look in the attic crawl space and look for any signs of water intrusion.

Formosan Termites - An urban legend?

2006-05-26T13:33:00.000-04:00

Sort of.
No doubt many of you received that infamous email about these termites being embedded in hundreds of thousands of bags of mulch from trees downed by last falls southern hurricanes.

While it is true that this larger species of termite is more pesticide-resistant than domestic termites, they are definitely not included in bags of mulch from Lowes or Home Depot and couldn't survive a winter here in Ohio if they were somehow transported here.

They were introduced to Gulf port states some 50 years ago on ships from East Asia and although they can migrate on their own, they are usually spread primarily through human transport.

Your garden variety termite is still a big deal though. Termites do more than $1 billion in damage each year and not a week goes by when I don't hear a story that has to do with termite damage. Most lenders require a termite inspection prior to authorizing your mortgage. Even if it isn't a condition to your mortgage, have a termite inspection done by a certified inspector. This picture shows what termite damage may look like in a floor joist or ceiling beam.

Single Women Make up 21% of all buyers

2006-05-26T13:17:00.000-04:00

I mentioned here about 15 months ago as I noticed that a good amount of my clients the previous year were single women. It turns out 21% of all home buyers last year were in that category. That's more than twice the rate of single men across the country, according to the National Association of Realtors.

Low mortgage interest rates, lots of homes on the market and higher earnings may be some of the reasons why women are buying homes but I've not read or heard the answer to the obvious corollary -- why don't more single men buy homes for themselves? Is it just some sort of natural phenomenon? Are single men home-adverse? Are they financially unstable or uninformed?

Here's something that may explain a little of that: Maybe it's because of the 4.3 million Americans age 25-34 who are still living at home with their parents, about 63% are men.

According to a Sears study, about 85% of women have been, are, or expect to be soley responsible for a house within their lifetime.

It's planting time: Columbus Ohio Gardening 101

2006-05-18T11:27:00.000-04:00

It's time in Columbus to put the vegetable and other gardens in. The potential for overnight frost is all but gone.
I am a big fan of a backyard garden, though I admit it's harder and harder to find the time to devote to such indulgences.
If you're not sure what to do or how to go about it, the HGTV link below takes you to a good basic Q&A page with lots of great advice and hints for the beginning or experienced gardener.

A perennial flower/tree/shrub garden with lush landscaping is a big attraction to home buyers who won't have to do much but wait for mother nature to do her thing. If you don't have one but are considering selling your house in a couple-few years, then it might not be a bad idea to start one this year.
Make sure you have color from early spring to at least late fall. Also make sure it isn't too intimidating to potential home buyers to keep the garden going.

While I'm at it, I'll come out of the closet on HGTV. I'm a sucker for a couple of their shows, especially House Hunters. Sad but true. I do it all day long and then I come home and watch other people do it on TV. What can I say, I'm a real estate junkie. Of course, that's not a bad thing for my clients.

Basics - Gardening for Beginners, Tips, Videos & more : Home & Garden Television

Absorption Rate - How long will my house be on the market?

2006-05-17T10:30:00.000-04:00

Although many sellers expect Realtors to carry around a crystal ball and peek into it when setting prices and setting expectations for the sales process, the truth is we can only rely on what the market tells us, experience and knowledge.
One tool sellers can use to estimate time on market and temper expectations is Absorption Rate.

To calculate Absorption Rate, divide the number of listings by the number of sales during the last month. Currently, the Columbus real estate market has 17,186 homes and condos on the market. From April 17th to today, 2197 homes or condos have sold, making the absorption rate 7.82. While certainly not scientific, it is a decent off the cuff barometer of what to expect in a market. An average seller in Columbus can expect that, if there were no more new listings, that it would take 7.82 months to sell all the current listings on the market. That's up an entire month from about 45 days ago when there were about 1200 fewer homes available.

Let's take a quick look at the absorption rate for some different markets:

Upper Arlington ohio homes - 6.28
Bexley ohio homes - 5.8
Greater Olde Towne East homes - 10.63
Westerville ohio homes - 6.49
Worthington ohio homes - 6.59
Grandview ohio homes - 3.5
Downtown Columbus Condos for sale - 5.75

It goes without saying that all homes are not created equally. Nor are they priced equally well. In today's tougher seller's market, Sellers must have realistic expectations of selling price, time on market, and what to expect throughout the process. Their homes have to be clean, clutter free, smell free and as well cared for as possible.

The state of the state of the market?

2006-05-15T15:51:00.000-04:00

Let's use Clintonville as example. Considering Clintonville proper and using more or less Glen Echo to Morse Rd and the river to the tracks, there are about 200 homes for sale.

Three are above $500,000---529, 835 and 1.195 mil
22 homes are listed between $309,900 and $459,00
81 listings in the $200s from 204,900 to $299,900

That leaves 93 listings under 200 thousand dollars.

44 properties have gone into contract this month
5 of those had home sale contingencies
while 12 more moved from a contingent status to a firm "under contract" status.

So, Of all the properties that could be on the market, 23.4% of them are in contract.
Of the 29 properties that have a contingent status (upon financing or inspections usually) the average days on market are 50 days and the average price per square foot is $145.42

In May of 2004, during a great time to be selling a home, the average days on market for this same area was 58 and the average price per sq.ft. was $136.03/sqft. Add two years of appreciation at aprox 3.5%/per year and account for the current stiffer market facing sellers and there you have it. The more things change, the more they stay the same.

Is the market tough for sellers, yes. Is it good for buyers, yes. Are sellers having to sacrifice like crazy, not always. Are there homes going into contract quickly, yes--this month some Clintonville ohio homes for sale went in to contract in 4, 6 7, 8, 9 and others under 30 days. You need a good agent to get those too, by the way.

What does it all mean? While Clintonville may not be the perfect example market, the point is that despite all the hype of a real estate bubble and the housing market being soooo soft, it's a good time to be buying or selling a home in columbus, ohio.

Fed raises interest its target for the federal funds rate by 25 basis points to 5 percent

2006-05-10T16:55:00.000-04:00

It was announced today that Ben Bernanke and company raised the rates again, for the 16th time in a row.
The raise applies to the amount of interest banks can charge each other for overnight funds, but indirectly impacts other interest rates as well.
It seems many people believe that this means you'll pay more every month for your mortgage starting tomorrow. There is a trickle down effect that touches everything from the greater economy to your car loan to your mortgage payment. It's gradual though.
You can walk into any bank today and receive a mortgage, assuming decent credit history and moderate income, with about 6.5% interest.
What does that mean to you every month?
Each ten thousand dollars worth of home will cost you about $65/month in a mortgage payment. So, to extrapolate, a $200,000 home for sale in Bexley will cost about $1300 principal and interest. Of course taxes and insurance are tacked on.
Taxes differ by municipality and insurance is generally less than most people think, usually under $100/month.

IRS Rules Downpayment Assistance Programs Essentially Illegal

2006-05-10T11:04:00.000-04:00

This is a big deal and a bit of blow for those who need to use the looser debt to income ratio and income guidelines that FHA allows.

I was a little surprised to learn that about 1/3 of all FHA loans use these types of programs. The best known include Ameridream, Nehiamiah and Neighborhood gold. I agree that it's always been a joke that these "non-profit" organizations take a big fee and exist only to be a loophole for these buyers to obtain the best financing possible in ways they otherwise couldn't. On the other hand, I've seen them help my buyers buy a home for sale in columbus.

In a nutshell, the seller pays around 3% of the contract price to buyers for their downpayment and around $500 of that goes to the program. the Buyers are get around not being able to have a Gift for downpayment and the seller sells their house.

IRS Revenue Ruling Restricts Nonprofit Downpayment Assistance Programs Funded by Property Sellers

On May 4, 2006, the Internal Revenue Service released Revenue Ruling 2006-27 which will eliminate the 501(c)(3) status of a large number of nonprofits who receive funding from property sellers in providing downpayment assistance to FHA borrowers.

FHA regulations require that nonprofits providing a downpayment gift have an IRS 501(c)(3) exempt status. Due to the ruling, the IRS has indicated that it is investigating 185 organizations that provide downpayment assistance.

Nonprofits that receive funding from parties interested in a home sale, and who receive payments from home sellers correlated with the amount of down payment assistance, are most vulnerable to losing their tax-exempt status.

Conversations with FHA have indicated that they will insure loans with DAP assistance provided that the homebuyer has entered into a contract of sale (including any amendments to purchase price) on or before the date the IRS officially announces that the charitable organization's tax-exempt status is terminated. FHA will recognize the gift--if made to the homebuyer and properly documented--as an acceptable source of the downpayment.

FHA seems to believe this policy avoids harm to any homebuyer who, in good faith, has a contract of sales and anticipates receiving a gift for the downpayment from such a charitable organization.

Currently, about one third of FHA single-family purchase loans have the type of downpayment assistance that the ruling may affect. Such downpayment assistance programs have served FHA's primary clientele: first-time homebuyers, low- and moderate-income families, and minorities.

The IRS ruling makes passing the flexible downpayment provisions of H.R. 5121, "The Expanding American Homeownership Act of 2006," more urgent if FHA is going to continue to provide these targeted populations with affordable financing.

Buyers Regret Not Asking: Anyone Die Here?

2006-05-05T15:25:00.000-04:00

I ran across this today from the national association of Realtors. There is always some lively discussion when it comes to the question of divulging things that may have happened to people in the house. Murders, suicides, other crimes, or just someone passing away of old age is it obligatory for the listing agent/seller to disclose this to the buyer? My experience is that it would never have mattered to the homeowner had they not known.
But knowing something happened in the home does freak out some people and it sends others away no longer considering the house as a viable option.
Just last month I closed on a condo with a great young woman, it's her first home. All we knew was that an elderly woman lived there and that she was the original owner. AT THE CLOSING TABLE, we find out that the woman was agoraphobic and NEVER left the house in 30 plus years and died in the home. My buyer was asked to sign a sheet of paper saying as much. It didn't bother her too much but she'd rather not have known.
Funny thing. Many people believe that if the incident in question was public knowledge, then the seller does not have to disclose. I'll post some authoritative opinions soon. In the meantime, here's the article which is pretty vanilla:

REALTOR� Magazine Online -Daily News- Buyers Regret Not Asking: Anyone Die Here?

Selling & Buying in Columbus? Some things to think about

2006-05-04T14:43:00.000-04:00

The daily reporter today had a great article about selling your home and buying your next home and the stress that goes with it.
The way I do things is like this:

Take the sellers out and show them some homes they might like
If they find some they like, chances are they'll find some when it's REALLY time to look
List their home -- Assign them the task of finding their new home with my tech tools and just driving around, looking at open houses, etc.
Put their home in contract
Go look at homes they already are ready to see because they've been watching the market
Put new home in contract
Close on old home
Close on new home

Of course, if they've fallen in love with the 'new' home, a bridge loan sure comes in handy. You should see what lenders can do with bridge loans these days too, unbelievable. I like them most for people moving into Columbus or people moving out town.

Here are some highlights from the article ----

Putting a house up for sale can be a stressful experience.
According to RealEstate.com, the endeavor is even more taxing for those who are simultaneously selling their home and buying another, prompting the home listings provider to survey 550 such homeowners about the unique challenges they face.

"Many people underestimate the emotional overload of selling one home and buying another at the same time," said Holly Slaughter, consumer experience expert for RealEstate.com."That sense of uncertainty, which is always present to some degree during a home sale or a home purchase, is basically doubled for bridging homeowners," she said.

"The only antidote is to spend some time planning for contingencies and to set your expectations realistically."

Forty-two percent of respondents said the uncertainty of knowing how quickly their home would sell was difficult or more difficult than expected.

Nearly 70 percent said they were "worried" during the selling and buying process and 67 percent said they were "hesitant."

Most people do not buy and sell houses every day, so their unfamiliarity with the process tends to get the best of them, said Chris Reese, president of the Columbus Board of Realtors."That's why they need to get in contact with a Realtor to get that series of events in place," she continued.

Sixty-two percent of those surveyed were successful dual-closers, meaning they were able to close on their existing home and move into their new home without a significant lapse in time. The remaining homeowners either had sold their homes but had not yet closed on a new one, or had closed on a new home but had not yet sold their original home.In addition, the survey revealed that 48.2 percent of all respondents agreed or strongly agreed that the dual negotiation process was taxing.

About 53 percent of those respondents were women, while 42.2 percent were men."For most bridging homeowners, success means moving seamlessly from one residence to another, since most of us don't want the hassle of living in temporary housing or the expense of paying two mortgages," Slaughter said.

Nearly half - 47.1 percent - of respondents agreed or strongly agreed that getting their home in sale-ready condition took more time and energy than expected.Once owners begin sorting through all the things they have collected over the years - the first step to getting a house in order - they can begin to feel overwhelmed about moving out, Reese said.

The majority of the bridging homeowners surveyed, 78.2 percent, had no regrets about the process. However, if they had to do it again, 9.9 percent of men vs. 8.8 percent of women, were more likely to say they would have sold their existing home before making an offer on a new home.

"For bridging homeowners, there are a lot of moving parts," Slaughter said. "But the good news is, there are some simple things they can do to smooth the process."

The full article can be found here:
CENTRAL OHIO SOURCE - The Daily Reporter, Inc.: "Bridging homeowners face unique challenges when buying and selling
Bridging homeowners face unique challenges when buying and selling MELANIE MCINTYREDaily Reporter Staff Writer05/04/2006

Freakonomics Blog � Realtors Get a Blog

2006-05-04T13:12:00.000-04:00

Another stat from NAR, one in which they led off the introduction of their own blog with.

Real estate professionals do more for sellers than make the transaction easier. They make them money. In fact, the average seller who uses a real estate professional makes 16 percent more on the sale of their home than do sellers who go it alone. That’s an average of $31,800 per home.
That’s one reason the level of unrepresented sellers has declined steadily in recent years. Despite five consecutive record-breaking years for home sales from 2001 through 2005, the level of unrepresented sellers has dropped from a cyclical peak of 18 percent of the market in 1997 to a record low of 13 percent in 2005, according to the 2005 National Association of REALTORS® Profile of Home Buyers and Sellers.
Real estate professionals assist both sellers and buyers with the services necessary for a successful real estate transaction, especially pricing and marketing. Real estate pros can help price the property accurately and market it successfully using the variety of tools available today -- Internet, print, word of mouth and more. REALTORS® know best how to prepare a home and maximize value, provide broader exposure to the market and are more likely to generate multiple bids than a seller on the own.
In addition, REALTORS® are experts in attracting qualified buyers. A professional can show a home more objectively than can a seller who may be emotionally attached to the home, and who might become unnerved by prospective buyers’ critical comments. The real estate pro also checks the financial capability and bona fides of buyers before allowing them onto a seller’s property.

Every market is different and it'd be hard to know the accuracy of the study because you can't sell the same house twice in the same market. Ask any For Sale By Owner (FSBO) though, and they'll tell you what a hard and almost impossible job it is to go without a Realtor.

Notes from Online Real Estate Studies

2006-05-04T12:15:00.000-04:00

According to a California Association of Realtors 2005 paper,
21% of on Internet buyers expect a real estate sales associate to respond instantly to an inquiry.
23% Expect a response within 30 minutes or less

But, According to Realtor.com, only 27 percent of practitioners responded within EIGHT hours to an inquiry from Realtor.com and a stunning 46% of inquiries NEVER received a response.

Wow. Right about now you may be thinking, "Boy am I glad that I'll be using Joe Peffer to help me buy or sell a home in Columbus." While I can't always guarantee an immediate response, I will guarantee that I'll get back to you within the hour if at all possible and never more than 24 hours from your inquiry.

I am very technologically tuned in. I believe it helps my business, promotes my professionalism and keeps my clients more than satisfied. They are the reason I spend the money every month to have a blackberry. Client calls and client emails, along with email inquiries from would-be clients are answered ASAP.

Of course there are times when I am with my clients, showing homes, explaining offers, making offers, attending closings, etc. The only time I answer the phone when I am with a client is if I think it has something to do with that particular client. For example, if I never heard back from a broker regarding whether or not I can show a house while we are out looking at another house, I'll take that call.

technology skills, communication skills, marketing know-how, an empathetic go-getter . . . . why would you use any other Columbus Realtor?