With the $8,000 tax credit for 1st time home buyers about to expire on November 30th, I was expecting to see a lot more New Albany homes for sale and Columbus homes for sale going into contract. When the tax credit was announced, the experts thought it would jump start the housing market. From my vantage point, there has been little “trickle up” effect seen in New Albany Ohio real estate.
Usually when one home sells, the seller buys another home, and the seller of that home buys another home and it goes on up the line with buyers trading up or down to different homes. What has actually happened is that a large number of the buyers who have taken advantage of the tax credit have purchased NEW homes which means there is no ripple effect following the sale of that home. The builders have moved a lot of spec inventory but the resale market remains unchanged.
A bill was introduced in the Senate to extend and EXPAND the home buyer incentives. It’s targeted at the “move up market” which was what was missing from the current incentive. The passage of this bill is what I think will finally launch a recovery of the entire housing market.
The proposal being would extend a $15,000 tax credit to anyone who purchases a home through the end of next year. A recent Moody’s Economy.com analysis suggests that the $15,000 credit would result in the sale of an additional 675,000 nationally – New Albany, Ohio and the Greater Columbus area would surely see the number of homes sold as well and, hopefully, a gradual return of some of the home equity that was lost during the past several years. Stay tuned or contact Kate & Tony for any updates on the bill.
Until next time,
And you need an experienced guide
It is with great fondness that I remember the days of putting a New Albany home into contract, and pretty much being assured that I’d soon be joining the happy Buyer and Seller at the closing. Well, maybe some time in the future those days will return, but for now, its a jungle out there!
Now more than ever, you need an experienced Realtor…Kate and Tony Thomas, happen to come to mind… to help guide you through the jungle from contract to closing. Here’s a few of the hazards that can you can avoid if you have an experienced and intrepid Realtor guide.
“Mauled” a wild inspection
That great home can look like the money pit depending on whose inspecting it and how the report is interpreted. We just had a home where the inspector marked “poor condition” for an entire gutter and downspout system because one downspout was not connected to the ground drain. “If one thing is wrong we mark the entire system as poor” was this inspector’s answer to our query. Methodology like this is provocative and creates unnecessary fear and concern on the part of the Buyer.
“Bitten” by appraisal
The Seller and Buyer have agreed upon the price, so it’s a done deal, right? Wrong! The Appraiser, the bank underwriter and / or the loan officer can scuttle the deal. To further undermine the situation, the bank can no longer select the appraiser. While this “firewall”, helps eliminate the possibly of coercion and collusion between lender and appraiser, the unintended consequences are that you can end up with a appraiser that is completely unfamiliar with the area and valuations.
Mired in transaction “quick sand” pits
There are many details touch points (68 in our system) to bring a contract to a successful closing. If the Realtor does not have the experience, systems and foresight to avoid the transactional pits, the deal can quickly become mired and sink.
An experienced professional “guide” is a must
It doesn’t matter if you are wearing a Buyer’s or Seller’s hat, a professional Guide is a must. Kate & Tony Thomas and New Albany Realty have the experience, systems and support in place to ensure that your trip through the “Jungle” is a successful and safe one.
Until next time,