Just say NO to New Taxes When Selling Your Home

Have you read Ohio Governor John Kasich's new budjet proposal? It includes a 20% reduction in the state income tax; a reduction in small business tax for LLC, S corporations, partnerships or sole proprietors; as well as a 0.5% decrease in the state sales tax. To offset the cuts, under the budget proposal, the sales tax would be expanded to services – including real estate services – in Ohio, with the exception of a few areas (education, medical, funeral services, home construction, residential rents, and some insurance). The proposed sales tax would be on every aspect of a housing purchase like home inspections, appraisals, mortgages, home warranties, title searches, commissions and more. Like the Ohio Association or Realtors, I oppose this expansion of the sales tax base! Selling a home is already so expensive for homeowners. I think additional tax burdens could be devastating to seller, and it could derail the recovery we're finally seeing. CABOR Chairwoman Joanne Zettl said, “CABOR joins OAR in its opposition to expansion of the sales tax base. At a time when the real estate recovery in Northeast Ohio is still in its infant stages, additional costs to real estate transactions would add financial burdens that could be devastating.” Just say NO to this new real estate tax to your state senator or representative. I know I will!

Great Article on Planning a Kitchen Remodel

Homeowner's Workbook: How to Remodel Your Kitchen

Houzz- Kitchen Remodel, Bathroom Remodel and More »

Browse Furniture on Houzz- For Example:

Bar Tables · Benches · Buffets And Sideboards · Day Beds And Chaises · Dining Chair Cushions · Dining Tables · Sectional Sofas · Sofas ·

2013 Home Trend Predictions

Today's builders, architect, designers and housing analysts have made their home trend predictions for 2013 and beyond.  Here's a look at their predictions:

Outdoor Kitchens
We've seen this trend for a couple years now. Homeowners are adding large glass doors in their kitchen that open to outdoor kitchens.  The first really great one I saw in this area was a few years ago when the Canyon Woods development was launched with a Home-A-Rama.  

Secondary Suites
Some homebuyers are opting for attached secondary suites. At some point, the private suite may be used by older relatives or adult children. Also great for au pairs or just visitors.  Sometimes the present homeonwers may eventually move into the suite and encourage younger relatives to take the larger portion of the home. Wasn't this popular years and years ago??

For those that are building now, it may be too costly to add a secondary suite now. But think about having wiring and plumbing added so that an in-law suite is easier and less expensive to build later.

Technology
The latest technology can help you mange lighting, heating and security and can help you bring your utility costs down.  The new location-based security systems are worth checking out too.

Source:  Excerpted from The Plain Dealer, 2/9/13

If a Meteor Hits Your Home, Who Pays?

If your house is hit by a space object -- such as the remnants of the meteor that stunned people in the Urals region of western Siberia -- it won't be a major hit to your bank account.

 

"Your insurance covers falling objects," said Robert Hartwig, president of the Insurance Information Institute.

Meteorites -- which are rocks formed after a meteor burns in the earth's atmosphere -- have crashed through roofs rarely over the years. But when they do, insurers paid for the damage if people had homeowners' policies, according to Hartwig.
                        
A more common problem is "blue ice," the frozen sewage that occasionally falls from planes. That is also covered if it falls on your house, said Hartwig.

The event in Russia was the most serious one in many years, a once-in-a-century event, according to Laurie Leshin, a former NASA scientist and Director of the Center for Meteorites Studies at Arizona State University. It injured more than 700 people and damaged nearly 300 buildings, according to the state-run RIA Novosti news agency.                                    

Space objects rain down on earth all the time, but rarely do they injure people or damage property, according to Leshin, who is now Dean of Sciences at Rensselaer Polytechnic Institute.
"The earth is pelted with 40 tons of space debris a year," she said. "Most of that is in teeny dust particles."

To do real damage, a meteor usually has to be bigger than a Volkswagen when it enters the atmosphere, she said.

"There was a case where a meteor(ite) crashed through a roof, bounced off a sofa and hit somebody in the leg," said Leshin. "But I know of no cases in which anyone was killed."
Russia seems to attract meteors. A 1908 explosion over Siberia was the largest impact event in recorded history, with estimates of the energy released from the blast equivalent to as much as 1,000 times that of the atomic bombs dropped on Hiroshima.

                                     

It devastated an area nearly the size of Rhode Island. If that happened in even a sparsely populatedpart of the United States, it would be cataclysmic, said Hartwig.                                       

"That would be an extraordinarily expensive event for the insurance industry," he said.

Source: CNN Money

Find homes for sale

First Published: February 15, 2013: 11:38 AM ET

Curb Appeal...Buyer's First Impression

A recent article in Realtor Magazine pointed out that buyers will decide if your home is well cared for just by seeing the outside. In real estate, we call it the "drive by" showing.  Just by looking at the external aspects of your house--walkway, landscaping, house numbers, mailbox--they'll have an instant impression that is hard to change.

In addition to landscaping, Lisa Grant Valil, author of Creating Curb Appeal, advises sellers to take a look at these items:

Front door - Make sure this focal point is in top condition - both its paint or exterior finish and hardware.

Windows - Wash them inside and out

Garage - Do doors need paint or repair?

Driveway  - Check for cracks and oil stains

Twilight - Look at evening lighting and consider portable outdoor lamps, solar lights, and putting outdoor lights on a timer for nighttime showings. 

A special note for this time of the year: Having the driveway, sidewalk and front walkway neatly shoveled is not just a safety issue! These paths help draw the eye to the front door. A neat and thorough shoveling job actually makes buyers want to come in and see your house.

Great News in PD This Week!

 

Northeast Ohio house sales rose 13.4 percent in 2012; condo sales jumped

By Michelle Jarboe McFee, The Plain Dealer

Home sales rose in Northeast Ohio and across the country in 2012. The region's housing market saw its highest sales since at least 2008, while the nation posted its best year since 2007. Higher sales and lower inventory of available homes pushed up real estate prices in many Northeast Ohio counties.

CLEVELAND, Ohio -- Northeast Ohio's home sales rose in 2012 to their highest level in at least four years, an indication that the market is recovering after years of dragging down the economy.

Higher sales and a shrinking supply of available homes pushed prices up last year in many Northeast Ohio counties. Experts expect more improvement in 2013, thanks to low interest rates and pent-up buyer demand.

Sales and prices have not returned to pre-recession levels and might never reach the delirious highs of 2005 and 2006, the top of the real estate bubble. But the last year showed that housing has hit bottom.

View full sizeThe PD

In Northeast Ohio, sales of single-family homes rose 13.4 percent last year, compared with 2011. Condominium sales, a sliver of the market, posted a 26.3 percent annual increase, according to local listing-service data for 15 counties.

Statewide, home sales were up 12.7 percent from 2011, the Ohio Association of Realtors said Tuesday.

"This is a train that's very hard to start, but it's also hard to stop" once it gets moving, said Carl DeMusz, chief executive officer of the Northern Ohio Regional Multiple Listing Service, said of the housing market.

In Ohio and across the nation, December sales dipped a bit from November but surpassed December 2011 levels.

The local reports, which track new and existing homes, portray a market plodding toward slow, steady growth. Listing-service data for five counties - Cuyahoga, Geauga, Lake, Lorain and Medina - show that sales have been climbing but still have not reached 2000 levels.

View full sizeThe PD

Real estate companies said their growth in 2012 bodes well for this year. At Coldwell Banker Hunter Realty, which covers a wide swath of Northeast Ohio, annual sales were up 15 percent from 2011, president Ed Dolinsky said. Between its Pepper Pike and downtown Cleveland offices, sales at Keller Williams Realty Greater Cleveland were up 63 percent, operating principal John Ludwick said.

Howard Hanna Real Estate Services, the biggest player in the region, announced Tuesday that it closed $3.6 billion worth of sales and 20,983 transactions in Ohio last year. That marked a 22 percent increase in sales volume and a 19 percent jump in the number of units sold.

View full sizeThe PD

"The momentum had a lot to do with interest rates being low," said Howard "Hoby" Hanna, president of Howard Hanna Ohio. "I'm anticipating another really strong year as the housing market continues to recover."

Across the country, sales of existing homes reached their highest level - an estimated 4.65 million homes changed hands during 2012 - in five years, according to the National Association of Realtors. Nationwide data on new-home sales will be released Friday.

The national Realtors continue to say that tough lending standards and tight inventory are hindering sales. It would take just 4.4 months to sell all of the available U.S. homes at the current buying pace.

"Both sales and prices will again be higher in 2013," Lawrence Yun, chief economist for the national Realtors, said in a written statement.

Prices are inching up, and 2012 marked the return of bidding wars and fierce competition for the best homes in Northeast Ohio. But the housing bust wiped out nearly a decade of price growth in the Cleveland area, and many homeowners remain stuck in houses or condos that are worth less than the debt they carry. Sales of bank-owned properties, though a dwindling share of the market, continue to weigh on home values.

"We're getting a little bit of appreciation, but not so much that we can see a turnaround. But there is light at the end of the tunnel," said Ludwick, of Keller Williams. "Real estate values are driven by supply and demand, and we have a shortage of good inventory. That's going to spur the market. The segment of the market that I think will open up somewhat is move-ups and move-downs, which have been pretty stagnant for the last couple of years."

The national median - or middle - price for a previously owned home was $180,800 in December, up 11.5 percent from a year before. Ohio real estate groups report average prices, instead of medians. Across the state, the average sale price was $132,698, up 7.7 percent from December 2011.

In Northeast Ohio, the average sale price for a house was $133,888 in December, an 11 percent improvement from a year before. Across 15 local counties, condos fetched an average of $122,395 in December, up 14 percent.

Local homes sold for as little as $1,000 and as much as $1.3 million last month, according to listing-service data.

http://www.cleveland.com/business/index.ssf/2013/01/northeast_ohio_house_sales_ros.html

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Howard Hanna
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http://www.howardhanna.com

Scariest Things for Home Buyers

When getting ready to sell your home, you should assess its condition and fix items BEFORE you list it. My experience has been that buyers find four issues the scariest to deal with: water intrusion, radon, mold, and the roof. Even if these problems aren't apparent in your home, they may be there.

When a buyer makes an offer on your home, it's usually contingent on them doing a home inspection. A home inspector examines the current condition of a house. He/she identifies current problems and what components or systems may need major repair or replacement.

If a buyer's buyer's home inspector find one of these "scary" issues, three things can happen:  1) they can buy the home as is; (2) they can ask you to fix it or adjust the selling price; and most frightening of all, (3) they can walk away and get their earnest money back. With big issues lurking, you really run the risk of killing the deal.

Smart sellers these days are even hiring home inspectors themselves, before they list, so all problem areas can be identified and corrected, before their home hits the market.  If you're getting ready to sell, ask me if a pre-listing home inspection may be right for you!

SOLD!

So happy to report that 17505 transferred title yesterday! It was a pleasure to market this luxury home (priced at $1,445,000) and I'm thrilled for my seller clients (who are moving on to a new chapter in their lives) and the new family moving in. It's such a special home!  If you want to know the selling price and/or how it affects your home value, just give me a buzz!

Seek Greater Enlightenment...In Your Home!

A recent article in Realtor Magazine talked about the importance of proper illumination when selling a home. It cited a recent survey that found that “lightening and brightening” a home can offer the second-biggest return to sellers (behind #1 “cleaning and de-cluttering.” A $224 investment in upgrading light fixtures and window cleaning can potentially offer a three-fold return at the time of resale!

But even if you’re not planning on selling soon, these lighting tips might make your home a more warm and inviting place to live!
1. Use clear light bulbs. Choose clear light bulbs over opaque for a cleaner look. I’ve been noticing that a lot of retail home stores use this tactic. 
2. Make all bulbs match: This is a huge pet peeve of mine! Mismatched bulb types in a chandelier, for example, are uncomfortable to the eye and make a room feel chaotic.
3. Use the highest possible wattage bulbs: Except in bathroom sconces where they can create a harsh glare.
4. Clean light fixtures. Brush off dusty light shades, remove dead bugs from light fixtures, and get rid of cob webs in chandeliers. 5. Replace dated light fixtures: Don’t wait until you’re selling to upgrade your fixtures. Brass is definitely out and unappealing to buyers, and you’re probably tired of it too! I’m amazed at how affordable great lighting fixtures have become at places like Home Depot, Lowes, Ikea and more. Another option if you don’t want to buy a new fixture…try spray paint! Use metallic iron-colored spray paint on light fixtures, switch plates, etc. It gives a room an instant new look for just a few dollars!

Will 2012 be a Seller's Market?

For the past few years, we've been working in a buyer's market. That is, there were way more listings than buyers out there. That's been tough for a listing agent like me.

But it seems we may be looking at a big change going into next year. Here are a couple factors that point to Cleveland's east side becoming a seller's market:

Fewer foreclosures - Foreclosures should slow down as Freddie Mac and Fannie Mae change their rules and more financially distressed homeowners are able to hold on to their homes. I haven't seen foreclosures being a huge factor in the Chagrin Valley, but they are out there.

Fewer Housing Starts - Builders have been leery of building spec houses and starting new developments. But there is pent up demand for new construction. We estimate that 15% of buyers want a brand new house, and there's definitely a shortage in our area.

Interest Rates - Buyers are going to come to realize that our amazing low interest rates have no where to go but up. Buyers who have been on the fence waiting for rates to go lower may finally buy. That means more buyers out there.

Inventory - Our inventory of houses for sale is so low! In almost every community, the number of listings is down.

It all comes back to your high school economics class....good old supply and demand!

Things to Consider Before Renting Your House

When your house has been on the market awhile and it doesn’t sell, it’s tempting to rent it. After all, it would be nice to have money coming in every month and for the home not to be sitting empty.

But renting is more complicated than you may think, and there are some important things to think about.

Top on my list of worries is how the renters will care for your home Time and time again I hear horror stories of friends who rented their properties only to get them back in terrible condition. Even when you rent to nice families, with good incomes, who seem so great when you meet them. I think it has something to do with pride of ownership…when it’s not their home, they just don’t take care of it the same way.

Other good ideas before renting:
Consult with an eviction attorney – What will you do when your renter doesn’t pay one month, either because they won’t or can’t? You should understand the legal challenges of eviction before deciding to rent.

Interview Property Managers – Being a landlord means getting a call at any hour of the day or night regarding maintenance issues. Are you ready and capable of handling it? It also means finding qualified tenants and collecting the rent. Collection calls aren’t fun. What if your tenant told you that they have enough money to buy food for their kids or pay you rent, but not both?? You might want an experienced property manager on your team to help with these situations.

Create a Realistic Budget – Renting brings some money in, but also creates expenses. When deciding on your rental amount, you need to cover more than just the mortgage payment. You should also include property taxes, maintenance expenses (things like repairing or replacing the roof, appliances etc.) and insurance.

The big question: Chagrin VS Kenston Schools

A question I hear from out-of-town buyers moving to this area is, "Chagrin Falls or Kenston--which has the better schools??"

And when working with local buyers, it seems everyone has a strong opinion...they HAVE to be in Chagrin schools or they insist it's GOT TO BE Kenston.

As a real estate agent, I am not allowed to advise or comments on schools. All I can do is point external & objective resources, let them do their own research and come to their own conclusion.

The Ohio Department of Education recently came out with their Report Card and it's great news for our area...all schools here were rated at least EXCELLENT by the Ohio Department of Education.

Chagrin Falls and Orange were rated Excellent with Distinction, and Kenston and Solon were named Excellent.

I think the really interesting thing is how they scored...Chagrin's index score was 109.2 and Kenston's 107.2! How close is that?!

So my short answer to buyers who ask about schools...We are so fortunate to have so many excellent schools to choose from in our area!

(For more info go to the Ohio Dept of Education website at http://ilrc.ode.state.oh.us/)

CHOMP that Wallpaper

Wallpaper and border is usually the first thing that needs to go when getting ready to sell your house. It seems like a nightmare project, but JUST DO IT! Some sellers are tempted to leave it because it's too much work for them and the next buyers might like it or take it down themselves. Bad idea--in most cases it will be a huge turn off to buyers viewing your home and they will assume it's very expensive to remove. So if they do decide to make an offer--despite your ugly wallpaper--they will low ball you.

So, get busy removing your wallpaper and border. Try this product I just used to remove some decals and border in my daughter's bathroom. It's called CHOMP and it was so effective. I wiped it on the borders and decals and in a few minutes they all just wiped right off. It took no time at all and no hard work or scrubbing. I purchased it at Home Depot but I'm sure it's sold at any home improvement or hardware store.

Hope it works as well for you...happy chomping!

Possibly the Cutest House for Sale in Bainbridge!

Help me spread the word about this terrific home on Old Meadow in Bainbridge. The owners have renovated it top to bottom. The highlight is this awesome Kraftmaid kitchen. Every bath has been redone, it has tons of living space, and is on a beautiful 1.5 acre lot. All this for just $295K! Tell your friends looking for a home in Kenston Schools....

Police Blotter an Entertaining Diversion

I love reading the Chagrin Solon Sun's Police Blotter every week. It's usually entertaining, and sometimes paints a picture of our communities that goes against the stereotype. Or sometimes is spot on!

Here's a great one from this week's paper regarding Chagrin Falls...

"Criminal Mischief - A worker with the Village Service Department reported that there was extensive graffiti on the walls and pavement of the shopping center. "

OMG!!! Are inner-city taggers invading the Falls???

But, no. "But officials soon discovered everything had been done in chalk, including peace signs, and recommendations to 'recycle' and 'thaw out.'" Hilarious!!

Here's another one that shows true criminal behavior here in the Valley...

"It appeared shortly after daybreak that someone climbed the fence overnight at the Chagrin Falls Recreation Center and rearranged some chairs around the pool." Love that this is what's considered criminal behavior here!

So I Didn't Imagine It...

The Plain Dealer reported today that December home sales were up. So I didn't imagine that I was crazy busy late last year! The holidays are typically a VERY quiet time real estate agents. But I found just the opposite this year...I was even showing houses right up until Christmas eve!

The PD said that Northeast Ohio home sales rose 10.6% from November to December. This was for both previously owned homes and new construction.

Thankfully, January seems to be just as busy. The lesson here...if you are thinking of listing your home, NOW is the time. Don't wait until the spring market is in full force and there's twice the competition.

Considering a Home Improvement Project?

Are you considering remodeling your home, and wondering what it will do to your property value? My philosophy is if you're planning to stay in your home for a long time -- go for it! Make a change that works for your family, and don't be so concerned with how it will affect resale.

But if you're thinking of selling in the next few years, you should consider its cost effectiveness. A recent article from National Association of Realtors highlights the importance exterior projects, which provide the most value but also are some of the least expensive improvements. For example, replacing your steel entry door or garage doors.

In terms of the interior, you recoup the most of your cost with an attic bedroom addition (71.4% cost recouped) or major kitchen remodel (60.3%).

Click here to check on the cost effectiveness of other projects: http://www.realtor.org/rmohome_and_design/costvsvalue

Of course, it's always best to check with a real estate agent (like me!) to see if the update or remodel makes sense for your home, neighborhood and today's market.

We're Still the One

Sales numbers for 2010 are in, and Howard Hanna is the #1 real estate company in Ohio and the undisputed leader in home sales in virtually every county in which we serve.

Here is our market share in the counties I work in:
Cuyahoga 47%
Geauga 57%
Portage 32%
Lake 40%

When choosing a broker for your real estate needs, shouldn't you go with the market leader, the best? You deserve it!

Buying a Home that's a Short Sale

So many of my friends and clients seem to be confused about short sales....so I thought I would try and shed some light. Short sales are NOT bank owned properties--they have NOT been foreclosed upon.

Short sales are when a mortgage holder agrees to take less than the unpaid balance on a loan. These are more common today because of the mortgage boom and bust. A lot of people overpaid for their homes a few years ago. Now for whatever reason they need to sell and home values have dropped. So maybe the house they paid $400,000 for may be worth only $320,000. How can they take $320K ( or less, after commissions, closing costs etc.) and still pay off their mortgage? They can't -- hence the short sale.

Most of my clients are the buyers in a short sale situation. For buyers, here are some important things to keep in mind:

1) Short sales can take longer to close - You are essentially negotiating a selling price with multiple parties - the homeowner, their lender, and possibly more than one lender and a mortgage insurer. They all need to get paid so they all have a say in the negotiations. Lenders tend to be very backed up with shorts sales and foreclosures too, so they don't always respond to offers in a timely manner.

2) Low ball offers don't work - So many of my clients think, "Great! A short sale! Let's offer half of the asking price and see what happens!" I can tell you what happens...your offer goes to the bottom of the pile or in the proverbial circular file. In most cases, the home is already a pretty good deal and crazy low offers will be ignored. Also, the lender(s) have a bottom price in mind and they won't take less for it.

3) Lenders can counter your offer - Again, don't think you're going to get it with the first offer you bring in the door.

4) Short sale deals fall apart - Because the transactions are so complex with many parties involved, issues can arise at any time right up to the day of closing. I suggest you never count your chickens on these ones until the title is transferred.

5) Have your ducks in a row - Lenders are more responsive if you have a preapproval for a loan and a good down payment.

Have I scared you off? I hope not. There are lots of short sales out there -- probably more than anyone realizes at this point -- and they can be a great opportunity. With a lot of patience, a flexible timeline, and a GREAT real estate professional (like me) who can walk you through the process, a short sale can be a smart buy.

New Year, New Post

Like everyone, I've set some new year's resolutions as we embark on 2011. A lot of my resolutions related to good health and happiness, but many more have to do with my real estate business.

BLOG MORE!
Yes, I promise to blog more in the new year. I let the craziness of listing homes, marketing them, negotiating offers etc. take over and it didn't leave much time for writing. No longer! And if you notice my blog has gone quiet, feel free to send me a friendly "Kick in the butt" via email.

LIST MORE!
Last year I had more listings than I ever expected, and almost every single home closed. I worked with a few buyers, but didn't find the experience as satisfying. I'm realizing my true loves and skills are in marketing homes so that's what I will focus on this year.

ASK FOR MORE REFERRALS
Many of my favorite clients last year came from referrals from friends and family. What's more, I think I can confidently say all those "friends of friends" ended up very satisfied and glad they worked with me. So, won't you help me keep this resolution (and build my business!) by referring a friend, neighbor, family member to me?

KEEPING IT COOL and ENJOYABLE
This year, I noticed so many agents get nasty attitudes, stress out their clients and fellow agents unnecessarily, and make the home selling process unpleasant. When it's so not needed! I vow to keep my clients insulated from these crabby agents and continue to keep it positive.

HAVE A SUGGESTION?
Have a suggestion on a good resolution for me? Email me at maryfranceslaganke@howardhanna.com and I will try and feature it on my blog!