Wednesday, January 25, 2012

For my Franklin County Clients, I hope this information is helpful for you...please share with your friends and family.


Thank you to Northwest TItle for providing this information....

Not Funny Ha-Ha

Trying to make sense of our tax assessments here in Franklin County lately has begun resembling a skit from one of those old “Hee Haw” shows.
No, really.
Remember the one with Archie Campbell, where he’s a barber cutting Roy Clark’s hair and tells him about something bad that happened to him, only when Clark tries to commiserate and say, “That’s bad,” Campbell disagrees and says it was actually good? And on and on the story flip-flops, and hilarity inevitably ensues? (Watch it here).
Well, cue the laugh track.
Back in June, the Franklin County auditor in Columbus sent out a letter to everyone saying he thought the assessed value for properties here had dropped significantly. One cause of this has been the increase in foreclosures and short sales. (Even though the auditor doesn’t make calculations based on a foreclosure’s selling price, he does use the sale that follows.) In addition, some foreclosed homes have been sitting empty for so long that they’ve deteriorated, reducing the value once a buyer purchases it after foreclosure.
(Gee, that’s bad).
Yeah, but as a result, our real estate taxes have gone way down. In fact, my own taxes went down something like 15 percent.
(Wow, that’s good).
But here’s the thing. As a result, we’d been having all these tense conversations in closings, where the seller wants to decrease the amount he’s handing over to the buyer for taxes, and the buyer is saying, “Well, hey, how do we know that the tax rate isn’t changing also?” And since we didn’t know if the tax rate was going to change, it became a matter of negotiation between the buyer and seller to determine what values we were going to use. It was stressful. We held a lot of money in escrow waiting for tax assessments to come out so we could properly calculate some of those transactions.
(Yikes. That’s bad).
Well, finally, FINALLY, we got our tax bills a few weeks ago, so now we’re able to work with verifiable numbers. It’s been an incredible relief. And since assessments in Franklin County last for three years, we can look forward to some stability and lower taxes in the near future.
(Woo-hoo. That’s good).
Unfortunately, with those reduced assessments and taxes, our county will be taking in a lot less money. I wouldn’t be a bit surprised to see the county revalue properties again as soon as possible, just to help its bottom line. I mean, it needs those revenues as bad as everyone else.
(Huh. That’s good).
In closing -
Hey wait, that’s not how it works. You’re supposed to say, “That’s bad.”
(Seriously? How long are we supposed to keep this hamster-wheel conversation going? Besides, if assessed values of properties start climbing again, that should be good. It’ll help encourage sales, and over time those better values will bolster the refinance market. Oh, and your “bad thing/good thing” shtick? It’s about as funny as a three-hour Carrot Top tribute hosted by the cast of MTV’s “Jersey Shore”).
(Um, that’s bad.)
Scott Stevenson
 IF YOU HAVE QUESTIONS ABOUT SHORT SALES OR JUST ABOUT SELLING YOUR HOME OR BUYING A NEW ONE, DON'T HESITATE TO CALL, TEXT OR EMAIL ME. 614-657-2005
My promise to my clients: I try to always remember what it is like to walk into this incredibly complex world of buying and selling with little or no knowledge of how the process works. I know that behind the door of your home and in your life there is much more going on than just your real estate transaction. I work with each person, not the house, and with the whole person, not just the issues surrounding the transaction. When I attempt to put myself in your shoes and contemplate what you are dealing with I am most effective.
The Benadum Team

Amy Bumpus
Straight Talk—Always


Monday, January 23, 2012

A Letter Posted by a Concerned Westerville Citizen--Good information for my Westerville friends.


As a realtor in Central Ohio for over a decade now, I am often ask about schools and communities. How are school's and their communities' connected? What does the school and/or community offer our family? How does the school affect my property value? And, so I am often referring people to the internet to find answers on what each school has to offer (because they can even vary within a school district from school to school), and how they rank on various state school grading websites, or suggesting they schedule a meeting at the school district(s) where they are considering a home purchase to find out first hand what is offered for their children, and to find the community that best meets their needs. The schools in an area really are an important part of the community, whether you have children attending them or not.

I am a resident of Genoa Township (17 years now) and my own children attend Westerville schools. I cannot say enough good things about the individual teachers that have touched and influenced my two boys over the past 7 to 8 years. I did indeed move here because I felt Westerville Schools would be a good fit for our children (when we had them! yes, I'm a planner), and because I really liked the overall Westerville community—beautiful parks, rails to trails bike path, its vibrant and quaint Uptown, excellent library, and too many other amenities to list here. There is value in having a well rounded community. First and most important—Value for the quality of your life! And, Value for one of the biggest investments you'll ever make, yes I'm talking about your home! Communities that are the best are the ones that view their neighbors and their needs as just as important as their own. I don't know anyone that deep down really wants to live in a community that the citizens fight only for the services that THEY PERSONALLY NEED RIGHT NOW. That makes for a cold and uncaring community and not one that I want to live in. I try to look around me every day and help my neighbors that I see could use a hand. I teach my children to do the same.

My older son, of his own accord, has chosen to participate in a Legacy Program run by Liz Stimer, a teacher at Genoa Middle School, and it involves the young people in a variety of activities from the Otterbein Community Garden to interacting with Seniors at local retirement community, to collecting donations to help less fortunate kids in an orphanage in another country. I think this program is a good model for a community, one where we transcend the boundaries of our daily routine and find out more about what others in our community like and need, and by learning how good we can feel by helping others. I find the best part of my day is when I get a smile and a thank you from helping a neighbor or a stranger that needs a helping hand.

I was sent a link to the following from a good friend and felt it does an excellent job at summarizing our school system and why it is is important to our entire community. I hope you find the following information helpful in evaluating our local schools, their benefits, needs, and for your decision on the upcoming levy.



Looking at Westerville School District and Westerville community 
Through the eyes of a concerned citizen

By Rick Bannister


Today the Westerville School District faces unprecedented times and an unprecedented set of circumstances. One of Ohio’s largest districts is faced with making $23 million in cuts by the beginning of the 2012-13 school year. Cuts of this size and magnitude have never been contemplated in our community. How did we get to this point? More importantly, how do we turn this around? There are many important facets to these questions, and this essay will provide background information and examine how Westerville moves forward.

Westerville Schools
With more than 15,000 students, Westerville schools rank among the 12 largest school districts in Ohio. When eliminating large urban school districts, Westerville is one of the largest suburban school districts in the state. In addition to its size, Westerville has one of the most diverse school districts in the state, as its 150-plus year-old boundaries encompass more than 50 square miles of land from Morse Road in the south to Big Walnut Road in the north, and from Worthington Road to the west and as far as Hamilton Road to the east.

Westerville schools include three high schools, four middle schools, and 16 elementary school buildings. While the district is nearly ―built out,‖ Westerville continues to renew itself with families who seek our quality schools and charming community. In fact, about 1,000 new students have been added to the rolls over the past 10 years.

Westerville schools are known for many offerings: the magnet school program, the International Baccalaureate Diploma program, music and arts programs, and outstanding athletic teams. In addition, Westerville schools have become known for having an outstanding special needs program. Residents in other areas of central Ohio have beaten a path to our door to seek the excellent special needs programs, as they should, but this growth has added greatly to the overall expenses of the district. Another area of significant growth for the Westerville school district is in its English as a Second Language population. One of the nation’s largest Somali populations has developed in northeast Columbus, and many of these families now live in our school district, thus requiring necessary programs to assist our newest residents.

Excellent with Distinction and Consistent Improvement
Ohio are evaluated on the same data. Westerville’s sustained upward climb for the past five years is something few, if any, school districts can boast. Columbus Monthly Magazine ranked Longfellow Elementary as the top elementary school in all of central Ohio. Emerson, Central College and Hanby were also included among the magazine’s top 25 elementary schools in the area. Blendon Middle School was chosen as among the 10 top middle schools in central Ohio, and all three high schools were selected by US News and World Reports as among the top 6 percent of all high schools in the country. Westerville is also among just a few dozen public school systems to offer the prestigious International Baccalaureate Diploma program, which is available to any high school student in the district.
For two years in a row, Westerville Schools have received the State of Ohio’s highest designation—Excellent with Distinction. The Ohio Department of Education determines the designations and criteria for this rating. Receiving this designation for two consecutive years puts Westerville among the highest achieving districts in central Ohio and in the state. In fact, Westerville Schools have experienced unprecedented improvement as they have received higher marks from the State of Ohio in each of the past five years. All 600-plus public school districts in Ohio are evaluated on the same datea. Westerville's sustained upward climb for the past five years is something few, if any school districts boast.

Columbus Monthly Magazine ranked Longfellow Elementary as the top elementary school in all of central Ohio. Emerson, Central College and Hanby were also included amont the magazine's top 25 elementary schools in the area. Blendon Middle School was chosen as among the 10 top middle schools in central Ohio, and all three high schools were selected by US News and World Reports as among the top 6 percent of all high schools in the country. Westerville is also among just a few dozen public school systems to offer the prestigious International Baccalaureate Diploma program, which is available to any high school student in the district.

It is reasonable to assert that right now the Westerville School district is performing at a higher level of achievement than ever before.

Our Economic Situation: How Did We Get Here?
In 2009, the Westerville School Board put an operating levy on the ballot and promised the community that the funds would sustain the district through the 2011-2012 school year. The Board was able to keep its promise despite the fact that the district lost about $13 million in funding from the state and through loss of tax revenues.

It is important to note that some citizens do not realize that when they approve a $10 million levy, the amount collected remains $10 million for the life of the collection. By law, it can never increase. Unlike cities, municipalities, the state and federal government, school funding always remains flat. This puts constant pressure on school districts to find ways to do more with less, which requires them to ask the community for support. During good economic times, home values increase, which means that millage is reduced and the taxpayer always pays the same amount of money. Home values have recently declined, so any levy that is being assessed at the maximum amount (effective millage) cannot be increased any further. Westerville and other districts have actually lost money under this scenario. Our school district has been impacted by a loss of $5.5 million.

The State of Ohio had planned to phase-out business inventory tax from schools to sustain its own budget. Instead of a plan to do this over a number of years, the Ohio Legislature made the phase-out immediate, effectively pulling the rug out from under public school districts. This change cost our school district about $8 million.

The data below clearly illustrates how the state funding portion of our school district has been drastically reduced. This places more of the burden on local communities and its citizens.

Westerville has been hit with a perfect storm—a double whammy of reduction in funding from the state and other sources.

It doesn’t stop there. Over the past decade the Ohio Legislature also approved funding for charter schools. When students enroll in charter schools, the home school district loses the state funding. This calculation occurs in the fall of the year and funding is determined by head count. A recent trend has developed: When students and families become disenchanted with charter schools, they re-enroll the student in the public school district, but no funding is provided for that student until the following fall head count. In truth, this is a worst-case scenario for public school districts.

Our Teachers and Administrators
In the fall campaign, much focus was put on teacher and administrator salary and benefits. The opposition claimed that the teachers’ health insurance plan is too expensive and that they do not pay enough of their premiums. The opposition constantly pointed to the ―New Albany Plan‖ as a way for our district to save millions.

The fact is that New Albany teachers pay a smaller percentage of their health insurance premiums. Westerville teachers pay 20 percent of their family premium and 5 percent of individual. Those who understand health insurance are aware that 80 percent-plus of the total costs are likely wrapped up in family premiums.

Another fact is that by paying 20 percent of family premiums, Westerville teachers already exceed the 15 percent requirement that Governor Kasich put in his Senate Bill 5 initiative. That measure was soundly defeated by Ohio voters, but even so, Westerville teachers already exceed the threshold by another 33 percent.

Since November, the administration has moved quickly to adjust district administrative staff health insurance premiums to the same percentages as the teachers. This move will save the district $300,000 per year, but more importantly, this shows that district leadership was listening to the community.

Regarding teacher salaries, Westerville is a shining example of achieving at the highest level, with salaries that are below average in Franklin County.
 
According to the Ohio Department of Education,
WCS median teacher salary ranks 13th out of 16 districts in Franklin County (ODE Interactive Local Report Card – ―iLRC‖). 
Of the 16 districts in Franklin County, five districts pay their teachers more, yet have lower report card ratings. Only one district pays less and has the same Excellent with Distinction rating. (iLRC).

The teacher salary increase in 2010 has caused controversy, but after one year, teachers voluntarily gave back half of their increases to help the district. Even with the much maligned increase in one year, in 2010, Westerville continues to limit growth.
 
According to the Ohio Department of Education,
WCS median teacher salary has risen just 9 percent in the last 10 years while inflation has risen 27 percent.
The 9 percent increase is the lowest in Franklin County (iLRC and www.bls.gov/data/inflation_calculator).

For comparison, the Franklin County districts with the greatest 10-year median teacher-salary increases are Hilliard (+64%), New Albany (+56%), Dublin (+50%) and Worthington (+49%) (iLRC).

Also keep in mind that our administrators have had two salary freezes recently and are now paying substantially more for their health insurance, and according to the Ohio Department of Education, when calculating administrator per-pupil ratios, Westerville ranks 578th lowest out of 611 public school districts in Ohio.

Even the harshest critic of our district would acknowledge that Westerville’s ranking is remarkable.

Westerville's Tax Base
One of the best ways to sustain a community and school district is to have a solid blend of residential and commercial taxes. Westerville just doesn’t measure up to other communities when it comes to having a competitive commercial tax base from business.

When it comes to supporting schools, the data below demonstrates that failure to attract sufficient business to our community places a higher burden on homeowners.


Business Valuation As % Of Total Valuation FY11
As this chart illustrates, Westerville trails 11 of the 16 communities in Franklin County when it comes to its percentage of business valuation.

The irony to this is that the best way to attract business is through a strong and vibrant school district. This was identified in a survey the Westerville Area Chamber of Commerce conducted in the 1990s. Ever since then the Westerville Area Chamber has always used the slogan, ―Good schools are good for business.‖ The reverse is also true, but Westerville does not have the commercial base, and this puts our community at a decided disadvantage.

The Unsustainable Part
During the fall campaign, levy opponents often referred to support for Westerville schools as being unsustainable. The research provided in this document illustrates that it is the State of Ohio’s position toward funding public schools that is unsustainable. In 1997, the Supreme Court of Ohio declared the funding model for public schools as unconstitutional. This was the historic DeRolph decision, which has been upheld four additional times over the past 15-plus years.

Ohio has failed to act. Democrats and Republicans share the blame for this as both parties have had control of the Governor’s Office and legislature since DeRolph, yet nothing has happened.
Local communities have been forced to take control of their own lives and prioritize what is most important to their citizens.

More recently, Ohio has pushed its deficit down to the local level so that it could balance its budget. Many other school districts are approaching the cliff’s edge like Westerville. The funding problems are systemic and require a systemic approach to fixing them.

What is not sustainable is for citizens of the state to shoulder the entire burden while the State of Ohio chooses not to act.

The Cost of Failure
Our Community Our Schools, the volunteer organization in support of the schools, asked the Westerville Area Chamber of Commerce and the Westerville Realtor Association to help calculate the cost of failing the March levy.

It is certain that a defeat in March will mean $23 million in cuts and reductions to the school district. The district has not yet finalized these cuts, but the preliminary list includes reducing and/or eliminating busing, eliminating the magnet school program, eliminating all sports and extracurricular activities, eliminating of the IB Diploma program, raising class sizes to state maximums, and limiting high school students to five classes per day. The cuts mean a loss of 113 teachers and 230 district personnel.

The map of Ohio included below shows how school districts throughout Ohio are falling into fiscal watch or fiscal emergency over the next two fiscal years.





As you can see, the challenges that Westerville faces are what most public school districts in Ohio are facing within the next few years.

By failing in March, Westerville is at risk of having the State of Ohio step in to manage certain affairs of the district. This is certainly not anything that a forward-thinking community would ever relish.
Using Southwestern City Schools as an example, Westerville residents can expect their property values to decline by 15 to 20 percent. This question was recently posed to leading realtors in Westerville, to which they replied, ―It doesn’t matter what value you assign, homes will not sell in this community.‖
As an employer, the Westerville School District is at risk of not being able to attract or even keep its best and brightest teachers and administrators. It is anecdotal, but at this point, district personnel are already on the move to other communities.

The March Levy
Facing $23 million in cuts, the School Board decided to construct a new levy package for citizens to consider in March. Opponents have claimed that the district must be respectful of the outcome in November. The new package is respectful of the citizens as follows:

The March levy request asks for $15 million in funding—a full 25 percent less than the November levy request. The March levy is 6.7 mills of property tax and eliminates the unpopular income tax provision included in November.

Note: The change in the structure of the March levy means that the district is asking for 25 to 33 percent less from taxpayers than the amount requested in November.

The March levy is not permanent; it is a five-year emergency levy. Westerville voters will be given another opportunity to review it in five years. Even if the levy passes, the district will have to make between $6 and $8 million in cuts to the operating budget.

Comparisons have been made to Dublin, where its community failed a November levy and its School Board decided to forego a levy request until November 2012. Opponents of the levy say Dublin’s approach is more respectful, but the truth is:

Dublin schools operate with a large reserve fund and will not have to make cuts like Westerville will need to make for the 2012-2013 school year. A November levy will generate revenue on the same schedule as a March levy. In both cases, monies will not be collected until 2013. From a tax collection standpoint, there is no difference.

By giving Westerville citizens a choice in March, if successful, the School Board will be able to plan more effectively and bring back some programs knowing that income will be available.

Westerville Schools: The Cornerstone of Our Community
This essay has attempted to examine some of the most important issues facing our school district and community. From an achievement standpoint, Westerville Schools can boast that they are among the leading districts in the area, not only through achievement, but also through the way our district has managed its resources. The statistics and data provided herein make a compelling statement that Westerville Schools really do provide citizens with more for less.

Re-cap:
Westerville is one of the largest and most diverse school districts in Ohio.

Westerville is rated as one of the highest achieving school districts in central Ohio and the entire state.

Westerville Schools have improved their ratings with the State of Ohio for the past five years in a row.

Westerville lost $13 million in expected state funding and local tax revenue. Our teacher’s average salary ranks in the lower half of central Ohio school districts.

Our teachers pay more for health insurance than what was required in the failed Senate Bill 5.

Our teacher’s median pay has increased far below inflation and other school districts over the past 10 years.

Our administrator per-pupil ratio ranks as 578 out of 611 public school districts in Ohio. 

Westerville Schools have few, if any, peers in central Ohio when one compares our rate
of achievement and our cost per pupil. 

Westerville’s inability to attract business (as compared to other central Ohio
communities) has created more burdens for homeowners. For nearly 15 years the State of Ohio has failed to address the school funding model.

Failing to support the levy in March will amount to $23 million in cuts and eliminating many basic programs.

Given the example of what has recently occurred in Southwestern Schools, our home values will be affected by continued failure to pass a levy.

Another levy defeat will cause more unemployment and will force many of our teachers and administrators to continue to leave the district for more stable communities.

Supporting the March levy will save the district from falling into fiscal watch with the state.

Supporting the March levy will amount to asking Westerville citizens for 25 percent less than what was requested in November.

The March emergency levy is limited to five years.

Our Decision
It is likely that the State of Ohio will not address the unconstitutionality of public school funding in the near future. Westerville citizens are faced with the decision as to what kind of school district it wants to support. A ―yes‖ vote in March will stabilize the school district for the next several years. A ―no‖ vote will reduce our district programming to something that resembles the state minimum. Given the data provided herein about the impact our schools have on home values and commercial development, it is logical to suggest that failure in March will be far more costly to Westerville and its citizens.

Continued support for our schools is the best way to protect our wonderful community.

 IF YOU HAVE QUESTIONS ABOUT SHORT SALES OR JUST ABOUT SELLING YOUR HOME OR BUYING A NEW ONE, DON'T HESITATE TO CALL, TEXT OR EMAIL ME. 614-657-2005

My promise to my clients: I try to always remember what it is like to walk into this incredibly complex world of buying and selling with little or no knowledge of how the process works. I know that behind the door of your home and in your life there is much more going on than just your real estate transaction. I work with each person, not the house, and with the whole person, not just the issues surrounding the transaction. When I attempt to put myself in your shoes and contemplate what you are dealing with I am most effective.
The Benadum Team

Amy Bumpus
Straight Talk—Always





Wednesday, January 11, 2012

Selling your home if you participated in a tax credit program.


I like to post general answers when a question becomes reoccurring because I know a lot of you may need an answer! This said, I am not a licensed accountant and am not giving tax advice, neither is David Dikeman providing the examples below.  We are just sharing some general examples for you to get an idea of how the tax credit works if you need to sell your home sooner than 3 years has passed. 

One of the best lenders I know had the following examples for me: 

 A question being ask by those that participated in the tax credit programs.......

 "If I purchased a house at the end of 2009 and I want to sell the house today, do I have to pay back the tax credit that I received in 2009?" 

After checking with two different CPAs. The first answer is "Yes." The IRS rule states that if you sell a house within three years (36 months), you have to pay back the tax credit - BUT - it depends on how much you make from the sale of the home.
Rather than explain in words, let's explain by example: 
Example 1
I buy a house for $200K at the end of 2009
 - I received an $8K tax credit, so my cost is effectively $192K
 - I sell the house in the beginning of 2012 for $201K, but it costs me 8% to sell (8% = $16K)
 - My net proceeds are $201K-$16K= $185K
 - $185K-$192K = $7K loss. Since I lost $7K, I don't have to pay back the $8K tax credit  even though it's been less than three years.

The seller would have to file form 5405 with their tax return, the form would walk them through the calculations, but there would be no repayment based on those circumstances.

Example 2
If I bought at the effective price of $192K (like above), I sold it for $212K, had the same $16K cost to sell, and netted $4K after expenses, I'd have to pay $4K of the tax credit back.

Example 3
If I bought at the effective price of $192K (like above),  I sold it for $218K, had the same $16K cost to sell, and netted $10K after expenses, I'd have to pay all $8K of the tax credit back.

Having said all this, Amy Bumpus, nor myself are licensed accountants. This is just for you to have an idea of what it means to sell your home after participating in the tax credit program. SO, YOU NEED TO CHECK WITH YOUR OWN TAX ADVISOR! Everybody's tax situation is different and only a licensed CPA or Tax Advisor can provide you with individual tax advice!

Of course, if you are going to purchase a new home, please give us a call to help you buy and finance your new home! We can certainly use the business, and we'll do a great job helping you from your search through the closing!


David Dikeman

Home Mortgage Consultant

Insight Bank
614-807-3891 Direct
614-330-7999 Cell
614-431-9410 Fax
8760 Orion Place, #100
Columbus,OH 43240

 IF YOU HAVE QUESTIONS ABOUT SHORT SALES OR JUST ABOUT SELLING YOUR HOME OR BUYING A NEW ONE, DON'T HESITATE TO CALL, TEXT OR EMAIL ME. 614-657-2005

My promise to my clients: I try to always remember what it is like to walk into this incredibly complex world of buying and selling with little or no knowledge of how the process works. I know that behind the door of your home and in your life there is much more going on than just your real estate transaction. I work with each person, not the house, and with the whole person, not just the issues surrounding the transaction. When I attempt to put myself in your shoes and contemplate what you are dealing with I am most effective.
The Benadum Team

Amy Bumpus
Straight Talk—Always


Thursday, January 5, 2012

Happy 2012! Kicking it off with positive news...



2012 Home Sales: Positives on Many Fronts


On January 3, 2012, in Breaking NewsEconomics, by Robert Freedman
NAR released its latest pending home sales index figure last week and for the second month in a row the index is up. But more than that, the index has broken 100. This is significant because the only time since the housing boom collapsed that the index has broken 100 is when the home owner tax credit was in effect. The fact that the index has returned to that level a year since the credit has been in effect means the housing market is strengthening completely on its own, without any stimulus.
NAR Chief Economist Lawrence Yun is upbeat about 2012 because in a number of areas indicators are pointing upward. Not only are home sales up but housing starts are up and home prices are stabilizing in many markets and heading up in some. In areas where they’re still down, the declines aren’t that great. More fundamentally, broader U.S. economic signs are looking positive, including the all-important jobs picture. About 100,000 job are being created a month, and that could rise to 150,000—still not a quick enough pace to get us back to where we were before the downturn but the headwinds are in the right direction.
So, what does this all mean to our market of Franklin County, Ohio and the contiguous counties? To buy or sell in 2012? What a year a year we have coming up—from the big US political election year to the the Ancient Mayan Armageddon coming and all? Well without the benefit of any ancient Mayan wisdom on real estate strategies, let's just hope the real cataclysmic event in the real estate market already has passed, and let's work on cleaning up the mess left from the bubble bursting.
Having households with loans higher than their value will keep prices down while creating major obstacles for sellers in 2012. So my prediction (yes, sans crystal ball I don't think I'm going out on a limb!) is that 2012 is going to be another homebuyer's market. In fact, recent studies indicate that more than 20 percent of all residential properties that have a mortgage lean are still underwater, leading us to believe that many foreclosures and short sales are still to come.
On a more positive note, even the most conservative forecasts are calling for growth in home sales in 2012, and more than one-third of home resales were made to first-time buyers in 2011 -- another good sign. So, as I like to point out, there will always be a need for homes. People still need to make changes based on their careers, lifestyle, and family needs. It is just simply that the intense demand created by the inexpensive loan rates combined with the easy availability of loan money, made a demand for housing that wasn't sustainable.  As we move forward, we all need to work on being more focussed on long-term needs and gains. Credible and Sustainable is what I believe is the future for all of us. I feel we've all had enough of greed and short-term gain, which is not working out so well for America overall.
In the meantime, here are some tips for selling your home or buying one in 2012.
Price it right from the start, period. 
This is imperative if you want to sell your home and obtain the most money possible in the current climate. Many real estate sellers will not be happy to hear this and right now are crossing their arms and thinking that holding out for a better offer is just what they'll do. But beware, your home will be brushed off by most homebuyers. Buyers are not easily fooled with the information age. And, even the lease internet savvy buyers are capable of viewing a few homes and then knowing if your home is a good value or not. So, if you price your home competitively in the your neighborhood, you'll be the one to receive the best offer possible and save yourself the additional mortgage payments, taxes, insurance, and utilities. If you price high and must lower to sell, statistics show you'll get lower offers than if originally priced correctly and you still have all of the carrying costs of your home while you were stubborn. Consider this from the National Association of Realtors that of homes that took four months or more to sell in the past year, almost half of their owners accepted less than 90 percent of the final asking price. I sit down with my clients and we review the latest comparable sales including short sales and foreclosures, as well as a recent summary of sales prices versus original list prices, and homes that didn't sell. The homes actual market value is usually quite apparent and difficult to argue over.  
Make the best first impression
De-clutter, paint, stage, scrub, improve, repeat. Efforts can include caulking, plastering, painting, planting flowers, adding potted plants, making the windows spotless, pressure washing decks and driveways, edging the walks, trimming the bushes and trees, and mending the fences. None of these is excessively capital-intensive, but when applied en masse, they say "I'm well cared for" and "buy me."
Be flexible
Be prepared for demanding buyers. It is after all a buyers' market. Be ready to negotiate and offer extras such as closing costs, repairs (or a cash credit), updating appliances, or pre-paying condo association/homeowner association dues for a brief period. If all of this is disconcerting to you and your response is "no way," then you don't really have a "need" or a " pressing reason" to sell, and maybe you should wait on making a housing change.
Look marvelous online
I use a professional photographer to present my listings online. Buyers begin looking online, and the photos matter. Sellers and buyers are routinely using online selling websites, as well as Facebook and other social media to explore the communities where they want to live. 
Don't fall prey
Fraudsters are targeting distressed homeowners with "deals" that can sound perfectly legit. Some offer loan modifications for upfront fees while others offer fee-based "help" in navigating government housing assistance programs, sometimes claiming they're attorneys.
There are also con-artist "investors" compelling desperate owners to sign over their homes with quitclaim deeds in return for a typically empty promise to remain there indefinitely. Others are telling former owners they can get their homes back for a lump sum. Be forewarned: Never sign blank documents or documents with blank lines.
If you're unsure of an offer, have an attorney or other trusted adviser look it over. Keep in mind that a law barring firms -- except attorneys -- from charging upfront fees for mortgage relief or mortgage modification took effect in 2011. It's called the Mortgage Assistance Relief Services Rule.

Financing-for sellers
Realize it's harder for buyers to qualify for loans these days. Credit records are under greater scrutiny, and lenders are often demanding a 20 percent down payment and some pricing flexibility from the sellers, especially if the lender's appraisal doesn't reach the asking price. Even though you don't like the buyers' offer, it they are a qualified buyer take them seriously and negotiate. They can and will move on to another very nice home to make an offer on.
Consider cash offers, even if they're not the highest. If you must reject an offer from homebuyers, do so gently and with encouragement, telling them they're oh-so-close. You don't want to give away your home, but you don't want to give it back to the bank either. These days, meeting halfway usually means meeting buyers on their half.

Financing-for buyers

Realize it's harder for you to qualify for loans these days. Credit records are under greater scrutiny, and lenders are often demanding a 20 percent down payment. If you really want to buy a home andyour credit is dinged up, do some upfront work. Meet with a reputable lender and real estate agent to develop a plan to get your credit in order and be ready to buy your home in 2012. If your credit is good, still, work with a reputable lender and real estate agent to get the best loan and the best buy on your dream home. (I know a great agent and a few really honest and hardworking lenders too!)

Choose your area

Are you worried about sustaining value? Review your current needs and the needs you'll likely have for your home's features and your communities' amenities (such as restaurants, community arts, movies, museums, groceries, retail, schools, walking/biking paths, parks, senior centers, etc) over the next 8-10 years. Consider buying near a prestigious hospital, university, large government employer or newly vibrant central business district. These entities typically aren't going away, and the demand for good housing around them won't either.

'Site unseen' equals shortsightedness

Are you perplexed by the home valuation you did on your place on the website of a large, seemingly reputable real estate organization? Puzzled how that valuation can be 25 percent or more above or below a firsthand appraisal you've had done? Well, value estimates on these sites can vary widely, sometimes by hundreds of thousands of dollars, even by the admission of the companies themselves. There are way too many variables in the valuation game to give too much credence to blind, algorithm-based estimates that are impersonally calculated. Nothing beats a nuanced firsthand professional appraisal.

Buyer's due diligence

As your agent, I'll assist you with all of the details...from working with your lender, preparing a solid contract and disclosures and the following protections:
  • Hire a title company to check the house for liens and tax arrearages.
  • Hire you own inspector. Don't use the seller's!
  • Have the inspector check for unpermitted work such as illegal room additions and garage conversions.
  • You may want to consider the overall energy efficiency of the home with an energy audit.
  • Be sure property lines are accurate. If there's any question, hire a land surveyor to research the original deed and to stake out the property's lines and your neighbors' property lines to avoid future disputes.

Make a quality-of-life due-diligence checklist

As your agent, I'll assist you with as much of the following as possible to make sure you find the best fit on a home and community. Like recommending that you do some of the following:
    • Go to the National Sex Offender Public Website at Nsopw.gov to search for neighborhood predators.
    • Spend some time around the neighborhood and briefly interview neighbors. Determine if there are noisy neighbors, signs of gang activity, nocturnal barking dogs, indigent lingerers, frequent loud parties and/or suspicious nighttime visits. Are there lots of rental homes? Is the block a cut-through point during rush hour? Does the school bus go past the block? Is there a restrictive homeowners association?
    • Determine what types of buildings can be constructed on vacant lots adjacent to the neighborhood. This helps avoid unpleasant future surprises. Is there constant noise from a nearby highway or busy street? But don't worry, I am very vocal on what makes for a poor investment when we are looking at the homes!

     IF YOU HAVE QUESTIONS ABOUT  SELLING YOUR HOME OR BUYING A NEW ONE, please DON'T HESITATE TO CALL, TEXT OR EMAIL ME.                                                                              614-657-2005 or abumpus@insight.rr.com


    My promise to my clients: I try to always remember what it is like to walk into this incredibly complex world of buying and selling with little or no knowledge of how the process works. I know that behind the door of your home and in your life there is much more going on than just your real estate transaction. I work with each person, not the house, and with the whole person, not just the issues surrounding the transaction. When I attempt to put myself in your shoes and contemplate what you are dealing with I am most effective.
    The Benadum Team

    Amy Bumpus
    Straight Talk—Always