Real Estate Information

We understand that most buyers search for homes on line. With that in mind, here is a list of helpful things to be aware of when looking for a home on the internet.

1.     CONDITION - Photoshop is a powerful tool that is often abused by listing agents and homes rarely look as nice in person.

2.    LOCATION - When a home states "great location", understand that "great" is a relative term. We suggest learning the specific neighborhoods so you know where you want to be located and use a tool like googlemaps to get a more accurate idea of the location of a home.

3.    ADVERSE CONDITIONS - Since a listing agent is trying to sell the home, they will never come right out and tell you that there are power lines or a highway located  directly behind the home. There may also be a commercial building right next door, conveniently cropped out of the front photo. Be weary of adverse factors that could greatly affect marketability of a home.

4.     STATUS - Don't assume the home you love on line is still available. Some sites show outdated information and don't clean up their site very often. To make sure a home is still an active listing, we recommend using a site that gets information directly from the local MLS ( Multiple Lisitng Service ).

5.     INACCURATE FEATURES - There is nothing worse than walking into what you thought was a 4 bedroom home only to find out it only has 3 real usable bedrooms.  A good agent will know these types of things so you don't waste your time.

6.     READ BETWEEN THE LINES - The copy and description written on a home is like that on a resume, often embellished. The listing agents job is to get buyers in the door so just be mindful.

7.     TOO GOOD TO BE TRUE - Remember, if a home looks too good to be true on line, there may be a reason.  While there are some great deals out there, if a home seems priced abnormally low compared to other similar homes, find out why.

8.     EXCEPTIONS TO THE RULE - Believe it or not, some homes actually look better in person. Some agents don't take great pictures or put much effort into their listings and fantastic homes can get overlooked. A good agent will be able to point out some hidden gems.

9.     PUBLIC RECORDS ARE SOMETIMES WRONG - Information that appears on a listing sometimes gets imported directly from public records---and is inaccurate. Do yourself a favor and double check things on your own.

10.   THE LISTING AGENT DOES NOT REPRESENT YOU -  While many on line listings encourage you to contact the listing agent directly with questions, that agent does not represent you. If you have any questions about a home you see on line, call your buyer's agent.

When all is said and done, viewing homes on line is a great way to start. However, a good buyers agent will preview homes on your behalf up front to save you valuable time and effort.

If you are serious about buying a home, hire a buyer's agent. It won't cost you money ( the seller pays real estate commissions ) and will be extremely helpful.

When writing an offer, there are many factors that are considered to be important, such as price and closing dates. One of the often overlooked items that appear in the purchase agreement is earnest money, the topic of today's post.

DO YOU REALLY NEED IT?

First off, earnest money, or good faith money is not required in Ohio. However, it is a way to convey your commitment to purchasing a home and is expected by local sellers. Sometimes it can even make a difference in whether or not a seller accepts an offer.

Buyers always ask us how much they should offer. There is no set rule on this although we do recommend at least 1-2% of the purchase price. So, for example, earnest money on a $300,000 offer would be $3000-$6000. Again, there's no set rule on this and you could certainly go above or below this threshold if you'd like, it's just a gauge we use.

Some buyers, especially first timers, are always a little reluctant to give any money up front because they often don't understand how it works. There is actually very little risk in offering earnest money. The money is held by a third party, not given directly to the sellers. If for some reason the deal doesn't work out for a legitimate reason, the money gets returned to the buyers.

IT CAN MAKE A DIFFERENCE

Earnest money is a way to show your commitment and can actually be a deciding factor. I have been on the listing side of a transaction where we received two offers that were similar in price. The sellers felt that the buyer who offered a significant amount of earnest money was more serious and chose to work with them.  This may be a rare case, but is something not to be taken lightly.

When all is said and done, price is likely the most important thing to a seller. However, showing your strength as a buyer can make a difference so it's worthy to discuss earnest money with your agent

The local real estate market seems to be picking up. Inventories are low, the weather has been unseasonably warm, and buyers are not just looking, but actually writing offers.  It may be too early to declare a seller's market, but it seems to be at least more balanced.  The busy market is causing buyers and agents alike to start changing the way in which they approach offers. 

SLOW MARKET = NO URGENCY

Over the past few years when things were slower, the buying and selling process often took a long time. Buyers were afraid of overpaying and sellers were unwilling to accept what the market was willing to bear for their home. Basically, there was gridlock and an overall lack of urgency on all parties to get anything done.

Buyers, until recently, had been in control. The general attitude of most was that a seller would be lucky to get an offer from them. Plus, if things didn't work out, they would just buy another home. Their level of commitment was suspect as well with some buyers preferring to just make a verbal offer instead of putting it in writing.

Negotiations also dragged out over days and sometimes even weeks.   Now,  a shift in the market has taken place and those not ready to adapt will end up losing out on the home of their dreams.

TAKE QUICK ACTION OR LOSE OUT

Today's increased activity is causing things to happen at a much faster pace than many are used to, including some agents. Anyone approaching the process in a lackadaisical manner will end up learning the hard way, when the home they want is taken by someone else.

We are not saying that buyers should make hasty decisions. We are simply recommending  that once you know what you want to do, do it quickly. Make an offer, work out the details, and get all parties to sign and date the documents as soon as possibly. This is even more critical if there is heated competition for a particular home.

NO SIGNATURE, NO DEAL

A last bit of advice. Understand that until all required paperwork is signed, dated, and/or initialed by all parties, there is no deal. 

In the end, you need to be prepared for today's changing market and having a great agent by your side will certainly make a difference.  Otherwise, the American dream could turn into a nightmare for you.

The home inspection process will make or break a transaction. It is by far the most important  step for both buyers and sellers. The following post will explain the process and offer some advice to make it easier for you.

Here are some basics about inspections. They are done to protect the buyer by informing them about the condition of the home and to uncover any defects. A thorough inspector will also take the time to educate the buyer about the home and how to properly care for it. We highly recommend a home inspection to anyone buying a home.

Historically, inspections were meant to put heavy focus on uncovering very specific things relating to structural defects or health and safety issues. These include things like mold in an attic, radon gas, or large cracks in a basement wall. Sellers typically offered to address these items as standard protocol.  It was a more simple process in the past.

Today, buyers seem to be asking for everything under the sun, even things they were aware of when they walked through the home ( broken outlet cover, rip in screen door, etc..). Now, the inspection typically results in a second round of negotiations.

Usually, it is not what comes on the report that causes problems, but how the buyer deals with the information. Some buyers are more alarmist than others. Which brings us to our next point: emotions!

The inspection period occurs when buyers' emotions are at a heightened state.  Buyers are initially very exited about their new home. After a few days pass however, additional feelings creep in such as nervousness, anxiety, and sometimes even buyer's remorse ( did we pay too much, is this really the right house...). These are natural and every buyer feels them, some just handle the emotional aspect better than others.

Buyers can become more emotional and less rational when dealing with items that appear on an inspection report. The sellers in turn become defensive upon seeing a laundry list of petty items. It then becomes a long drawn out process, sometimes even worse than the original negotiations.

THE SOLUTION

We communicate to our buyers to offer a price based upon what they see when they walk through the home and what has been disclosed by the seller. If you are aware that there is a cracked window or a broken screen door, either address it up front or factor it into the price.  If you know the roof is 24 years old, factor a new one into the price. Don't wait until it shows up on the inspection report and then use it as a way to re-negotiate a better price. This is a little disingenuous to the negotiation process.

When it comes to addressing inspection issues, try to focus on health and safety issues or structural defects that were not previously disclosed.

Also, we believe it is best to respond to the seller as quickly as possible. Although the standard contract will typically give you a certain number of days to respond to the seller ( in Ohio it is 3 days ), waiting until the last minute and dragging the process out may do more harm than good. If you really want the sellers to do something, making them wait on pins and needles for three days is not always the best way to get their cooperation.

The inspection process has become the most important phase of the buying and selling process. What happens here will often determine whether or not a transaction  ends up closing. Remaining calm and focusing on the big picture will often get you through it. That, and of course the help of a good agent.

We advertise that we provide our clients with legendary customer service. So what exactly does that mean?

To begin, it starts with a burning desire to make sure we meet and exceed the expectations of our clients. Our obsession with providing excellent service is a result of us expecting it personally when we deal with others. Whether it’s a restaurant, department store, or someone doing work on our home, Amy and I have very high standards. I am personally a stickler when it comes to service and have very low tolerance when I don’t get it. So when it comes to our personal business, we make sure to treat our clients as we would want to be treated ourselves.

It goes beyond this though. We understand that everyone has a different definition of “great service”, so we make sure to ask a lot of questions in the beginning of the process. We find it critical to find out specifically what our clients want and communicate with them in a proactive manner. As far as I’m concerned, if a client has to call us on something before we call them, then we have failed, and we won’t let that happen.

We enjoy doing little things for our clients that they don’t expect and often become friends with them after closing. Although we feel like we give our clients unbelievable service, we are always looking for ways to make it even better---that’s part of the obsession. 

Solon Ohio Real Estate - Year In Review 2011

The following is our 3rd annual year in review for Solon Ohio real estate. Here, we will provide a comparison between this past year and 2010 and offer commentary.

ALL HOMES

Year          # of Homes Sold        Ave. Sales Price   Sales Price/List Price

2011                      227                    $287,205                 94.24%  

2010                      202                    $292, 547                94.61%

NON BANK OWNED HOMES

Since there have been a large number of bank owned sales over the past few years, which can often skew the statistics, we have included figures below that exclude all bank owned homes.

2011                      212                    $291,708                 93.50%

2010                      192                    $293,265                 94.53%

LUXURY HOMES ( sales price over $500,000 )

2011                       29                     $626,888                94.58%

2010                       25                     $645,830                94.17%

2011 FIRST HALF VS. SECOND HALF OF THE YEAR

FIRST HALF              99                 $282,575               94.40%

SECOND HALF          113             $301,013               94.11%              

 Source: NEOHREX

COMMENTARY

While the last few years have been challenging to say the least, this past year showed us some positive signs. Below is a list of 5 important things that the above statistics tell us:

1.     More homes sold in 2011 vs. 2010

2.     Average sales price was relatively unchanged

3.     The market IMPROVED during the second half of 2011

4.     A well priced home will receive approximately 94% of asking price

5.     Affluent buyers are feeling more confident about buying a luxury home

So, what can we take away from all of this? Market stabilization has positively affected the entire local real estate market for both buyers and sellers.

BUYERS AND SELLERS BOTH FEEL BETTER

The numbers indicate more buyers and sellers coming together and overcoming the numerous challenges presented by the market.  First time buyers are feeling a little more confident as are the local move-up buyers. Those looking to sell and buy a larger home are realizing that selling their existing home is now a realistic goal and no longer have as much fear.

Sellers have come to better understand that the major correction in the local real estate market has brought prices to where they were about 10 years ago. I'm certainly not indicating that sellers are happy about this, but they now have more realistic expectations regarding price. 

There will still be challenges moving forward. The recovery is going to take a long time so expect sales and average price to remain flat until 2013.

While we do write a lot about real estate, on occasion we always like to share local hot spots with our readers.

A few nights ago we went to Solon's newest restaurant, Harvest Kitchen and Lounge, and were thoroughly impressed. While we are certainly not food critics, we have been to most of Cleveland's finest restaurants over the years and like to think we have very good taste.  We had a very positive experience at Harvest, will definitely go back,  and would highly recommend it to others.

Now, I'm not going to get into the particulars of what we all ate, but everything was fantastic. The appetizers, main course, and dessert ( the bread pudding is the greatest thing ever! ) were all top notch and made to perfection.  There was something on the menu for everyone, including the 2 vegetarians at our table.

In addition to the food, the atmosphere was great as well. Located on Bainbridge Road in the heart of Solon, it certainly seemed like the place to be by all the movers and shakers in town. There were many large parties, several couples having an intimate meal together, and others just hanging at the bar.

Overall, we are thrilled to have fine dining available here in Solon at Harvest Kitchen and Lounge and wish them great success.

Most people begin their home search on line. While this is easy and convenient, many sites on the web don't offer accurate information. So, the home you really like may not actually be available.

If you want to have up to date information on all homes for sale in Orange, we have 2 options for you:

1. Go to our Orange Home Search site and you will be able to see all current homes for sale here in Orange and the surrounding areas.

2. We can create a personal home search for you for FREE that would automatically email you homes as they come on the market. This way, you'd be the first to know about all the great new listings. All you would have to do is go to www.clevelandhomesearch.info and fill in all your information and housing parameters.

If you are serious about buying and want your finger on the pulse of the Orange housing market, this is a great way to do it.

Remember, the internet is a great place to get basic information, but nothing can replace the services of a good real estate agent. We often have information on homes that you won't find on line and know the inventory inside and out. Hiring an agent to help you with your home purchase will save you time and money.

When considering buying a home, we understand that most buyers begin their search on line. The problem here is that many sites on the web offer information that is either inaccurate or old, but we have a solution.

If you want to have up to date information on Pepper Pike homes for sale, we have 2 options for you:

1. Go to our Pepper Pike Home Search site and you will be able to see all current homes for sale here in Pepper Pike and in and surrounding areas.

2. We could create you your own personal home search, FREE of charge. All you have to do is go to www.clevelandhomesearch.info and fill in all your information. Then, you will get an email of all current listings that meet your parameters. Additionally, you will receive emails of homes as they come on the market. This option is preferred for those of you who are really serious about buying.

One important thing to keep in mind though is that we as agents often have more detailed information on homes than you will find on line as certain data is only shared among the real estate community.  Sure, you will see the basics, but a good local agent will be able to bring critical information to you that will be vital to your home search.

At the end of the day, the internet is a great place for home buyers to begin their search, but nothing will replace what a good agent can do for you.

We recently wrote a post about how a large percentage of consumers use the internet for their home search. We added that one of the problems is that many of these sites provide outdated or inaccurate information.

For this reason, we have 2 ways for you to get updated information on local Solon homes for sale.

1. We could set you up on a personal home search. This would be FREE of charge. All you have to do is go to www.clevelandhomesearch.info and fill in all your information. A search will be created and all homes for sale will be sent to you. Additionally, you will be sent new listings as they come on the market.

2. Go to our Solon Home Search site and you will be able to see all current homes for sale here in Solon and surrounding suburbs.

All listings come directly from our local MLS, offering the most up to date information available. In essence, you will have the same information available as agents do.

Keep in mind, while you can get a lot of the basics from the internet, nothing will replace what an agent can provide you. We have seen most of the homes personally and often know which sellers are highly motivated, which homes will sell quickly, and can tell you about new homes that will soon be coming on the market.

When all is said and done, the internet is a good place to start your home search, but hiring an agent once you are serious about buying will end up saving you time and money.