Ohio Real Estate

How do I perform a final inspection?

When purchasing Ohio real estate one thing all buyers have in common is a final inspection walk through. Unfortunately, many buyers are eager to close so don't insist upon this all important step. Avoid potential problems and unforeseen incidents by taking the time to participate in the final inspection walk through.

Whether you are purchasing Dayton real estate or any other property for sale in Ohio, it is customary to do a final walk through with the Realtor prior to the closing. It should be scheduled as close to possible to the actual time and date of the closing itself particularly if the existing homeowners, repairmen or others have had access to the property.

Once the house is empty, go through the house one more time while using the following quick tips.

1. Check to make sure everything listed in the sale remains. Moving companies and others often don't realize what appliances or other items were supposed to stay when the house was sold. Make sure everything included in the contract is still at the property.

2. Damage including breaks, scratches or accidents. Moving isn't always a smooth process and it is easy to scratch floors, break items or otherwise damage the property or fixtures. Check all walls, windows, appliances and other areas for damage. Any new damage must be notified immediately.

3. Repairs. If the contract stipulated any repairs or renovations were to be made to the property then be sure to check the work is completed and in good operational and/or visual order.

Remember, the purpose of the final inspection is to confirm the property is in the exact condition as described when you take possession. If there are any problems have your real estate broker put them into writing and address it immediately.

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How do I handle hold-overs when buying or selling a property?

A frequently encountered situation when purchasing Ohio real estate is when the person listing the property for sale in Ohio is also purchasing other Ohio new homes at the same time. Depending upon the distance and closing dates of all involved parties, a "hold-over" situation may arise where you cannot take immediate possession of the property on the date of the sale. Learn how to handle a hold-over situation by using the following tips.

1. Work closely with the real estate agent and/or legal representation to create a short-term rental agreement. In essence, you will be renting back the property to the sellers for x number of days. Decide in advance the duration, terms of the arrangement, utility and security deposit for damages that may result when moving.

2. Perform the final walk-through inspection. This is standard procedure before closing but is of even greater importance if the sellers will remain in the home after the closing date. It might be a good idea to take photographs of the condition of the home in order to establish if there were damages that resulted after the closing date.

3. Have insurance in effect. Remember, as soon as closing is complete you will own the property and be fully responsible for liability coverage as well as losses to the property itself. Speak to your insurance agent about how to properly insure the property during the interim. It is customary to include the cost in the daily rental or lease rates.

4. Negotiate. It is often possible to negotiate the down payment or other terms by placing a cash value on the daily rental rates required for the seller to remain in place after the closing date.

5. Have a back-up plan. Be sure to manage your own move-out dates including utilities and other arrangements especially if the sellers are not able to move by the time originally indicated. Be sure to have firm dates stipulated in the contract with alternative means designed to take possession of your new home in the event that the sellers’ plans fall through.

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What new materials are used when building new homes?

Newer homes in Ohio boast an abundance of building styles and materials including some of the most innovative construction methods to be found. Keep an eye out for these energy efficient building trends when researching Ohio property listings. Not only are they good for the environment but can save a bundle on the construction or renovation of your new Ohio home.

Structural Bamboo. Bamboo is one of the fastest growing plants on earth with nearly unsurpassed strength and flexibility so it should come as no surprise that bamboo is now being used to replace standard 2 x 4 studs in the construction phase.

Mortarless Brick Veneer. The strength and durability of concrete without the mess and high cost of labor. One of the main problems using concrete block construction is the cost of labor itself since installation of concrete blocks is difficult and time consuming. Mortarless brick veneer uses concrete that is pre-cast into various shapes and requires no mortar for installation.

PVC Lumber. Not only does PVC lumber resemble wood but it also is easy to saw and nail but with a few additional benefits to boot. PVC lumber is renewable, pest resistant and much more resistant to mold or other humidity problems.

Composite Decking. For those of you who love the look of a deck but hate the constant maintenance of repairing, staining and treating the wood then composite decking is the product you have been searching for! Durable and easy to work with, composite decking is virtually maintenance free. It doesn't crack, split or warp and never needs staining or sealing.

Steel Framing and Foundation Systems. From studs to foundation the strength of steel is being used throughout many new Ohio homes. Not only is steel strong but also pest resistant which helps to reduce the cost of termite damage and use of pesticides in the home.

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What do they really mean?

If you have been searching for real estate in Ohio, or elsewhere throughout the country, then chances are you have come across some of these "creative" descriptions. One of the benefits of working with a qualified real estate agent is his or her knowledge of the local market combined with firsthand experience with the property in question. For those adventurous types who enjoy visiting endless Ohio real estate listings with all types of creative advertising descriptions, here is a fun look at real estate lingo and translations.

1. Description: Gentle Slope. What You are Thinking: A slight incline that will be good for drainage. The Reality: The house is jutting out the side of a cliff with a driveway that is so steep it requires a 4- wheel-drive to park.

2. Description: Partial Water View. What You are Thinking. A lovely river or lake surrounded by trees viewable from the living room. The Reality: If you go upstairs and look out the back window through the trees between noon and two in the afternoon then you might catch a glimpse of the sunshine reflecting off the water.

3. Description: Newly remodeled kitchen. What You are Thinking: New granite counter tops, energy efficient stainless steel appliances, upgraded tile flooring and a sink so deep you could swim in it. The Reality: There was a scratch and dent appliance sale at the local big box store so the all new appliances are each a different brand and slightly different color with a tendency to have small dings in the side of each.

4. Description: Professionally landscaped low maintenance yard. What You are Thinking. Beautiful selection of native low maintenance plants fully established with a small pond and fruit trees. The Reality. They pay someone to mow the yard and have eliminated all other signs of green from the yard to reduce the cost.

5. Description: Needs TLC. What You are Thinking: Paint, carpet and some attention to the yard should make the place as good as new. The Reality: The county is one step away from condemning the property and it will cost more to insure than the mortgage value.

6. Description: Waterfront. What You are Thinking. Lovely river or lake in the backyard. The Reality. The house sits adjacent to a large drainage ditch or retention pond.

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What is title insurance and do I need it?

When buying or selling property in Ohio you will need to obtain title insurance. Unlike many other fees you will encounter during closing, title insurance is not a junk fee but instead, one of the most important items you need when buying a home in Ohio. Few people understand title insurance so here to help are some basic explanation and tips to keep in mind when closing on your new Ohio home.

There are two types of title insurance; one protects the mortgage lender and the other protects the homeowner. Without title insurance, the mortgage lender would probably refuse to write the mortgage because they would be unable to prove or demonstrate who is actually entitled to the property. So, you will absolutely need to purchase title insurance unless the transaction is between relatives or other informal agreements.

Lender's title insurance protects against zoning, easements and other conditions that might impact the property and land while property owners title insurance covers against title risk such as liens, easements or errors.

When closing you should look for two types of title insurance:

1. Mortgage title insurance. This is often paid for by the seller but it always negotiable.

2. Owners title insurance. This is a separate policy that may or may not be required. If it isn't, check into purchasing it on your own. The average cost is approximately $350 but it fluctuates depending upon the individual property. This is especially valuable if there are potential liens or other problems associated with the property.

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How do interest rates impact my ability to purchase a home?

Now might be a good time to take a new look at Ohio homes for sale. Interest rates remain near their historical lows and prices of many homes have remained stable or even declined slightly. When it comes to purchasing real estate, interest rates are often one of the most important considerations but few people fully understand interest and how to make it work for them when buying a new Ohio home.

1. Compare APR or Annual Percentage Rates. One of the first mistakes people make is failure to compare the total cost of interest versus the lowest rate quoted. Many mortgage brokers charge high fees, points and other costs that add thousands of dollars to the cost of the mortgage. By comparing the APR you will understand the actual interest paid for use of the money.

2. Understand Amortization. Mortgage payments are not equally applied to the mortgage principle; instead, the largest percentage of the payment goes toward paying the interest and then a smaller percentage goes toward paying down the principle. By paying a small additional amount each month or making additional payments each year, it is possible to cut a 30 year mortgage in half while saving tens of thousands of dollars over the life of the loan.

3. Fixed or Variable. Before signing any paperwork be sure you understand the terms and conditions of the mortgage. Currently many homeowners are facing financial difficulty because they failed to fully understand the terms of the mortgage. Mortgages are divided into fixed or variable rates. Variable rates can be less expensive but are subject to "re-set" to higher levels. Many people believe they can refinance to obtain a fixed rate at a later date but if your income changes or you fall behind in payments then you may not qualify for the best fixed rates. Always make sure you are able to maintain the mortgage payments with the type of interest rate that works for you in the worst-case scenario.

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How will tighter lending standards impact my ability to buy a home?

What do tighter lending standards mean for investors and home buyers interested in purchasing Ohio real estate? In some cases it will significantly impact the ability to purchase a home but in most cases, the additional requirements are probably not as bad as you might imagine. Here is a brief overview of what to expect from banks and lenders when applying for a mortgage to purchase new or existing Ohio homes for sale.

1. Larger down payments. In recent years low to no down payment options had become popular. Today, however, the climate has changed due in part to the sub-prime fall-out. Expect to put 5 percent to 20 percent down depending upon the program and type of property finances.

2. Documentation. Low or No-Documentation loans were at the center of the sub-prime meltdown with some estimates indicating upwards of 20% of applications containing significant factual errors. Except for the very best credit scores with very high equity or personal security, low or no-doc loans will be much harder to obtain.

3. Stricter Standards. Lenders are taking a more cautious approach to under-writing loans for those with less than stellar credit, those using other funds to borrow money or those with marginal cash reserves. Take time to put your finances in order before applying for a new mortgage to make sure you obtain the best rates.

4. Reduced Piggy-Back, HELOCs and other creative packages. Lenders are freezing many HELOC accounts - a traditional route used by many homeowners or investors to purchase new properties. Instead, banks want to see cold hard cash with plenty of reserves rather than paper "IOUs".

5. Affordable Housing. Lenders are once again turning to the ability of the home buyer to afford the monthly payments rather than counting on appreciation. Work with your real estate agent to find a home in Ohio that fits your budget.

6. Conservative Appraisals. Lenders are cracking down on appraisals and reverting back to conservative estimates based solely upon past sales and current trends. Expect to encounter more conservative appraisal estimates combined with close scrutiny of homes that have been recently sold and then placed back on the market.

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