5 Housing Market Trends that are Changing the Market Today

5 Things Renters Should Know

5 Things Renters Should Know About Owning

DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 11, 2016

For renters who aspire to be home owners, transitioning from an apartment to a house requires a shift in their thinking that they may not be prepared to make. The financial changes that come with owning, the need to consider planting longer-term roots in a neighborhood, and new neighborhood rules are things renters may not be thinking about enough.

Read more: Where Buying Beats Out Renting the Most

As their real estate agent, it’s important for you to be there for your clients when they’re embarking on a life-changing event such as buying a home.

Moving can already be one of the most stressful times in a person’s life, but it may be doubly so for a new home owner. In order to be their most reliable resource, using your knowledge and experience to provide them with guidance, share these helpful nuggets of information with your clients so their transition from renter to owner can be as smooth as possible.

They need to understand how their financial investment is changing. Renters may see an increase in their monthly rent every lease term, but they don’t see exactly where it goes — toward property taxes and insurance, even “luxuries” such as trash pickup. As home owners, they don’t have a landlord who handles all those details, so they need to be ready to juggle the financial responsibilities of home ownership. Have an open conversation with your clients about these changes and the importance of budgeting to make sure they make smart financial decisions during this process.

They need to be happy with their location for the long-term. As a renter, you can bounce around from home to home every year if you want. But when you own a home, you have to stay put — unless you plan on renting it out, which most home owners don’t. Impress upon your client that location is going to play a much more significant role in their future, so they should think about evaluating school districts, access to amenities, and commute time now as they search for their next home.

They may need to abide by new rules. Renters don’t think about possible homeowner association rules they may be governed by, such as trash pickup rules or any curfews or rules pertaining to animals. Make sure to get all the information on neighborhood rules and associations to help your client understand what their new obligations will be.

They’ll need to get into the mindset of an owner. Life as your client knows it is about to change. Once your client purchases a new home, they will no longer have a landlord to tend to their many needs, including lawn care and plumbing. The best way you can help them as their real estate agent is to provide them with contact information for local industry experts. They will eventually need certified specialists ranging from HVAC companies to carpenters to electricians. Let them know they don’t have to do everything themselves.

They should know their neighbors can affect their value. Renters don’t care who their neighbors are as long as they’re quiet (enough). But your client is now going to want to know whether their new neighbors are renters or home owners. This knowledge can help your clients gauge current and future home value in the neighborhood. If the neighborhood consists mostly of rental properties, it is likely a home owner will lose money on their house in the future. Renters do not always feel responsible for maintaining their properties the way home owners do. Property value comes down to curb appeal. Less-appealing neighborhoods often have more-appealing prices, which is not always good for buyers and home owners.

Source: Rob Rimeris is owner of EverSafe Moving Co. in Philadelphia. EverSafe is a five-star, full-service company that offers affordable moving and storage services

Making an Offer

Making an Offer April 2016 In a seller’s market, the first person to put an offer on a house is not necessarily the person who will get the house. In fact, there may be a number of potential buyers all vying for the same property. How do you win the house of your dreams? Get Good Guidance The best piece of advice you can get when buying a home is to hire a knowledgeable, trustworthy real estate agent who can guide you through the ups and downs of a home purchase. An experienced agent will not only be able to explain the process to you simply and easily, but will also understand how the market is working in your area. A good agent will know what kinds of deal-sweeteners will catch the seller’s eye, and, of course, will write the actual offer in a way that gets you the best deal for yourself, as well. Get Preapproved I can’t stress this enough: If you don’t provide a preapproval letter from your lender when you make your offer, you won’t even be considered as a serious buyer. Getting a preapproval is free; it also helps you determine your budget and will give you an idea of what your monthly payments will be. I am ready to sit down and talk with you at any time about the paperwork you’ll need to gather and the steps we’ll take to get you a preapproval letter in hand. Making Concessions To get what you want, you need to give a little. There are numerous extras you can offer a seller that will push you to the top of the potential buyers’ list. Pick up the seller’s escrow fees and county transfer tax or fee. They generally add up to about $1,000, give or take, making this an easy favor that looks like a big deal. Bring extra cash. If the house does not appraise for the amount you’ve offered, you can bridge the gap between the appraised value and the offer price at closing. Be willing to move as quickly (or as slowly) as the seller needs. If they want a 12-day contingency period, then get a move on and start ordering those inspections. Conversely, if they won’t be ready to vacate the home in order to close in one month, then slow down your own moving plans. Go the Extra Mile With so many houses receiving numerous offers these days, sellers are able to pick and choose on whatever bases they like. This doesn’t mean they always pick the highest offer. Give yourself an edge by responding promptly in a serious, straightforward manner. Be sure your financing is lined up and ready to go. And be personable. Yes, sometimes a seller will choose the buyer they like the most. One way to get a leg up in this area is to write a personal letter to the seller that not only raves about the house, the location, and the amenities, but also shows you as a real person, with plans to make the house your home. Showing that you will love the home as much as the seller did can propel you ahead of the competition. Keep in mind that no matter how much you love that house and how desperately you want it, it is never a good idea to waive inspections. Pest, home, roof, and in many cases sewer inspections will save you from seeing your dream home turn into a nightmare. For recommendations on an excellent real estate agent and experienced real estate inspectors, contact me at your earliest convenience, and we’ll get you ready to make a move on a new home! Copied from: Scott Melaragno Mortgage Loan Originator Home Point Financial 8351 North High Street Suite 101 Columbus, OH 43235 Office: 614-721-8604 Fax: 614-448-4571 NMLS: 83286 Contact Me My Website

Top Flip Picks New Franklin 01/29/2016

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Residential MLS: 3776068 Active  List Price:  $110,000  4901 Provens Dr, Akron, OH 44319 Sold Price: Area: SUM45-Green Twp: Green City Green Lsd List Date: 01/22/16 Subtype: Single Family Subdiv: Withering Heights Estates List Date Rec: 01/22/16 Parcel ID: 28-04092 County: Summit Pending Date: Off Mkt Date:     Closing Date:    Virtual Tour-Property Panorama Contingent Dt:   Exp. Date: Directions: Caston Rd to Provens Dr DOM/CDOM: 7/7  $/SqFt: $32.24

1 / 6 Residential MLS: 3772684 Active  List Price:  $144,500  6890 Kepler Rd, New Franklin, OH 44216 Sold Price: Area: SUM50-Franklin-Northwest Twp: Franklin Twp Stark Jvsd List Date: 01/04/16 Subtype: Single Family Subdiv: Franklin Sec 28 List Date Rec: 01/07/16 Parcel ID: 24-00123 County: Summit Pending Date: Off Mkt Date:     Closing Date:    Virtual Tour-Property Panorama Contingent Dt:   Exp. Date: Directions: 93 south to w Nimisila north on Kepler DOM/CDOM: 25/25  $/SqFt: $61.65  Report an Error    dotloop    zipForm Plus                     Property Details   Community   Schools  Annual Taxes: 2903 Homestead: No Assessments: No School Dist: Northwest LSD # Bedrooms: 3 Approx Sqft/Source: 2344/Realist House Faces: Disability Feat: # Baths: 3 (3 0) Tot Liv Area/Source: 2344/Realist Exterior: Brick, Cedar Elevator: # Rooms: 6 Lot Size (acres): 2.4800    Irr: Roof: Asphalt/Fiberglass Warranty: No # Fireplaces: 2 Lot Size Source: Realist Year Built: 1974 Fixer Upper: Yes # Stories: 1 Lot Front/Depth: 0x0 Construction: Actual YBT Public Trans: Full Bath level/#: lower:1 main:2 upper:0 Avail for Auction: No 1/2 Bath level/#: lower:0 main:0 upper:0 Auction Date:

Tips for purchasing rentals and flips

I would love to offer a few tips for purchasing a rental or flip.

It is important to pay attention to the homes within eyesight of the prospective property. Buyers don't want to be next to the worst house in the neighborhood and will choose not to buy a home if the house next door is run down or unattractive.

For a flip you want to be thinking about passing FHA mortgage appraisal guidelines: no peeling paint, flooring on all floors, no holes in the walls, railings on the stairs and the well must be outside of the home's foundation.

Items that help a home to sell: large bedrooms, master bath, formal dining room, finished basement, storage closets, new windows, fenced yard, garages.

A perfect flip will have all of the above items but simply needs updated. Paint,flooring, lighting, kitchen counter and bathroom vanities are the typical updates. The age of the furnace is also important, try to have a least a 90% efficiency or keep the price down.

Modern lighting can make a major difference in the appeal of the home.

Sometimes you will find a home with all of the above items outdated but in good condition. If it will cost next to nothing to have the home livable, you may want to consider doing the minimum cleanup and renting. In many cases you can knock money off the first few months rent and the tenant will do any painting and cleaning themselves.

When a home is marked way below the average for a quarter mile radius and has over 1000 square feet with a basement and a garage it is probably a good flip potential. Reconfiguring the infrastructure works best for adding  "perfect flip" items to the home. Plan to also replace the copper, furnace, siding and windows as part of the budget. Always have the well and septic inspected whether purchasing or selling the home. It can cost over $20K to attach to a city sewer due to a failed septic inspection.

There are items that allow you to have a higher rental rate than average in the area: fenced yard, a good school district, garages and extra storage. The right school district can make your investment into a gold mine. Rent-to-own with a 10% down payment to be subtracted from the price at the time of sale is another way to attract top dollar tenants; all leases must be drawn by an attourney.

Always remember the most important rule to flipping or renting a home: Location location location!