December 2, 2011
By
Dick Baker
Danberry associates win highest honors at Realtors’ Annual Meeting
Barb Stout from Danberry’s Perrysburg office was installed as the 2012 President of the Toledo Board of Realtors at its annual meeting on December 1st at The Toledo Zoo. Having served as a Director of the Board for years and served on most of TBR’s committees, Barb now holds the trade association’s highest office.
The Board’s two highest annual honors were also announced at the meeting. Carol Dimas from Danberry’s Briarfield office was named TBR’s “Realtor of the Year”. Carol was recently re-elected as a Director, and also chaired TBR’s most successful RPAC Committee in 2011. Jack Amlin from the same office won the “Realtor Citizen of the Year” award for his numerous contributions to civic and charitable groups, most notably as auctioneer at countless charity functions.
Among others addressing the Realtor group was Chris Hall, Danberry’s Vice President and Managing Broker at its Oregon and Perrysburg offices. Chris was recently elected Treasurer of the Ohio Association of Realtors, the first from northwest Ohio to serve in that capacity for the state trade organization in 19 years.
Danberry is very proud of the contributions these four individuals have made both to their industry and to the communities they serve!
November 30, 2011
By
Dick Baker
The problem with headlines…
They rarely convey the whole story, just as the one above does not. The problem is that most people don’t read far beyond headlines to digest the nitty gritty details they refer to.
Well, they’re at it again. A headline in Wednesday’s Business section of a local newspaper proclaimed “Region fares poorly as home selling prices drop”. Granted, the local real estate market hasn’t been on fire this year, but our “region fares poorly…”? The body of the article states that our metro area recorded a 3.86% decrease in prices, then two paragraphs later quotes the nationwide drop as 3.7%. Well, we did underachieve compared to the rest of the nation . . . by sixteen hundredths of one percent.
Clearly our industry faces challenges, primarily due to economic conditions. But let’s not forget that there is a positive side to declining prices – it is truly a great time to buy! Not only are prices down relative to recent years, but inventory is high (lots of great houses to choose from) and mortgage interest rates are at fire sale levels historically speaking. And contrary to myth, mortgage money IS available.
The Toledo Region has many great things going for it, including affordable housing. For a look at a freshly launched web site describing our region, go to http://toledoregion.com.
June 3, 2011
By
Danielle Powers
Renter Beware!
It’s incredible how much the Internet has grown and how much information is out there now! It has made looking for homes and even rental properties a breeze. It only takes a second and when it is all done you can kick up your heels and relax. However, keep the phrase “buyer beware” in mind.
There have been some properties going on sites such as Craigslist that are not legitimate. Sites like Craigslist can be a great tool in finding what you need but you should always use caution. If you see a home that is for rent or for sale you always want to make sure that you speak with either the real estate agent or the homeowner. This might take a slight bit of research. County Auditor websites make the research painless. CLICK HERE for a link to Areis for Lucas County. You can get all the information you might need so you can breathe easier!
June 2, 2011
By
Dick Baker
Myth or fact: The 3.8% tax on real estate is an Internet hoax?
Well, it’s not entirely true, not entirely false. First of all let’s understand its origins. Congress enacted legislation which will take effect at the beginning of 2013 in hopes of generating over $200 billion as part of the health care and Medicare overhaul plans. It imposes a 3.8% tax on some but not all income from interest, dividends, net rental income and capital gains.
Who is impacted? Individuals with adjusted gross income of less than $200,000 can breathe easier, as can couples filing jointly with AGI under $250,000. For the rest of you still reading, there are complicated details which will determine whether you might be affected by the new tax.
It is not our objective to offer tax advice. We are not CPA’s – that is not our expertise. However, we know that we have many clients who could be impacted by this legislation but are not aware of it. Since it does not take effect until January 1, 2013, now may be the time to investigate further. If, for example, a high-income individual is considering selling the old, highly appreciated family homestead, cottage or second home in the next few years, sooner might be better than later. This tax alone is not a reason to sell, but might be considered in the mix with other factors.
CLICK HERE for an article and video prepared for REALTOR Magazine which may help you determine whether additional personal planning is warranted. If you would like to receive a copy of the 11-page brochure referred to in the video, The 3.8% Tax – Real Estate Scenarios and Examples prepared by The National Association of Realtors, just get in touch with any Danberry agent.
May 12, 2011
By
Dick Baker
The media’s damage to confidence, psychology…
Has anyone been able to listen to an entire newscast lately without hearing that “One-fourth of homeowners are underwater!” Think about that term. “Underwater” conjures up an image in my head of someone going down for the last time, gasping their last breath. It almost implies that the mortgages of such families instantly become due and payable and they’re going to lose their homes. In fact, most of them are current on their payments and aren’t even trying to sell their homes. Is it a great surprise that in a declining market, so many people who bought their homes a few years ago with no downpayment or perhaps 3% down now owe more than their home is worth? Why does the media have such a negative bias about the real estate market? When stocks plunged a few years ago, I don’t recall hearing that “investors are underwater on their investments!”
It’s probably inappropriate to paint “The Media” with such a broad brush. Some are better than others in this respect. Consider these two headlines, printed within a day of each other. Our newspaper’s headline was “Toledo home prices fall at 3 times national rate in first quarter.” It was factual, median sale prices dropped 12.5% in the quarter, largely because of our unusual activity in lower end investor and foreclosure properties. That is not the same as saying that your home declined in value by 12.5% in the quarter, just that those particular units that sold in the first quarter compared with different units that sold in the first quarter of 2010 were lower priced. The statistics do not compare the same homes year-to-year! Therefore, perhaps market activity, not median prices, should be the focus. Example: with nearly the same quarterly decrease in prices (9%), the headline in Sarasota was “Southwest Florida home sales up 11% from 2010.” They somehow focused on the positive, a significant improvement in unit sales, while here we read about the negative number, which was actually better than many other Ohio cities . . .
Markets are markets, they go up and they go down. We have every expectation that like the stock market, the real estate market will recover, unless we allow the media to convince us that the sky has fallen on one of this country’s greatest foundations.
Epilogue: After posting this opinion came the inane cartoon in the Blade’s 5/12/11 Pages of Opinion which essentially suggested you are crazy to consider buying a house. What on earth can be the motivation for their campaign against home ownership?
March 31, 2011
By
Dick Baker
Are you facing foreclosure, or know someone who is?
Never before have so many homeowners faced the specter of foreclosure, and thanks in part to media hype, there are many misunderstandings about the options and consequences they face. It is important that those who are behind in their payments understand that their lender is not Snidely Whiplash, lurking in the wings hoping to take your home away. Foreclosed homes become a burden for them, so they would prefer to work with you to find a better solution for everyone.
Snidely Whiplash
Freddie Mac has produced articles and You Tube videos in an effort to dispel several common myths associated with foreclosure. The link below offers great basic advice on avoiding foreclosure. Help is available to those facing the loss of their home, however only a small percentage of them reach out to these resources.
Foreclosures can be a nightmare for families, but they are harmful to lenders and even the neighborhoods in which they are located. So let’s spread the word, there may be some better solutions suggested here: http://www.freddiemac.com/avoidforeclosure/
March 11, 2011
By
Danielle Powers
Danberry Realtors very own Chris Hall was featured on Channel 11 news Wednesday March 9.
Chris Hall discussed the realities of selling a home. It gives advice on how to price your home in this fluctuating market.
To watch the video click here: WTOL Finding out the true value of your home.
February 17, 2011
By
kathyjaworski
If you’ve ever participated in the purchase or sale of a home here in the Toledo Real Estate Market or anywhere in the U.S., you’ve probably heard some of those terms. If you’re anything like most other home buyers or sellers in the country, you may have been a bit overwhelmed by those same terms. Have no fear! The National Association of Realtors has created a Glossary of Common Real Estate Terms that can help you through the process of buying or selling a home; what is undoubtedly one of the most important transactions of your life! Here at Danberry, we also recognize that these situations can be stressful, and we want to do everything we can to help ease that stress. Contact one of our Danberry REALTORS® today. We’re happy to help!
January 31, 2011
By
Ann Newman
If you’ve been hearing the buzz that Wells Fargo is now offering FHA financing down to a 500 credit score, let me confirm that it’s true! For the right buyer, the 600 credit score has now been lifted with some additional parameters.
- Down payment - for credit scores of 580-599, a 5% down payment is needed. For scores between 500 and 579, 10% is needed.
- Debt to Income Ratio - FHA has always been flexible with the debt to income ratio. When going to a lower credit score, though, they’re requiring ratios similar to what a conventional loan would want (31%/36% required).
- Limits on seller contributions - the seller contribution is limited to 3%.
- No gift funds - the down payment has to be the buyers own money.
FHAs existing rules on judgments, collections, bankruptcies, etc. still apply. For many buyers, though, this lightening of the requirements is a HUGE win. If you have buyers previously turned down because there score was too low, give me a call! I’d be happy to help them see if this might be their time to buy after all.
January 28, 2011
By
Dick Baker
We must begin with the obvious disclaimer that economic forecasting is more inexact than weather forecasting, but we will take our best guess at what lies ahead of us in the coming year. We follow many analysts, remembering however that conventional wisdom told us one year ago that mortgage interest rates would rise by July when in fact they declined to historically low levels and stayed there.
Pending home sale numbers have risen for 5 consecutive months nationwide, and there is reason for optimism regarding sales within our region as well. Unemployment numbers, while still very high, have improved. No matter how you feel about the recent elections, it appears that the result is pro-business, less tax, which logically should improve private sector job creation through 2012. The American Dream of home ownership is alive and well, and demographics suggest increased demand in the future. There is reason for improved consumer confidence. With these factors at work, prices should begin to rise slowly again, especially as unsold inventories decrease.
Two factors may work against the improving market, at least in the very near term. We cannot ignore the seasonality of the market. Winter months are routinely the least active of the year. And mortgage rates have crept upward from their lows. However, many of us contrarians feel that this interest rate movement may actually convince reluctant buyers to get off the fence, the worst is behind us and it’s time to buy their home while rates are still extremely attractive from a historical viewpoint.
My conclusion: we hit bottom, but without much of a bounce. Remember however that compared to others, our region has tended to be the tortoise, not the hare. In some respects that can be a good thing. Just ask those in Las Vegas or many areas of Florida that continue moving in the wrong direction.
