Cleveland Real Estate And More

The home inspection in an important step of the buying process and will often make or break a sale. Today we will share some thoughts that will hopefully put things into perspective and help guide you through it.

First and foremost, we highly recommend all buyers have a home inspected by a professional. That being said, we caution buyers to have realistic expectations on what they are looking to accomplish here.

The past few years have seen the inspection process turn into round two of negotiations. Buyers have gotten a little out of control and seem to be asking for sellers to fix everything under the sun, even things they were aware of when they walked through the home ( broken outlet cover, rip in screen door, etc...).

In turn, sellers have become defensive and annoyed as they respond to a laundry list of what they think are unreasonable requests. So why have things gotten so out of hand?

EMOTIONS

In addition to unrealistic expectations, we feel that emotions also play a major role here.

Think about it, the inspection period occurs when buyers' emotions are at a heightened state. Sure, they are initially exited about their new home. After a few days pass however, additional feelings start to 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 totally natural feelings that all buyers experience. If not handled properly though things tend to get magnified and out of hand fast.

Instead of focusing on the really important things, such as health and safety issues, buyers are too often getting bogged down on really minor items. Some are even asking for upgrades to items that are working properly. This part of the process can end up becoming more drawn out than the original negotiations.

 

THE SOLUTION

We communicate three things to our buyers:

1.  Offer A Price Based On What You See And Know - If you are aware that there is a cracked window, or that the roof is 24 years old, build those items 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.

2.  Respond Quickly - Once the inspection report is received, get back to the seller as soon 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 ), dragging out the process may do more harm than good. If you really want the sellers to do something, making them wait on pins and needles for days on end is not always the best way to get their cooperation.

3. Focus On The Big Picture - Don't let pettiness and emotions get in the way of what you really want ---the home. Remaining calm and focusing on the big picture will often get you through it. That, and the help of a skilled real estate agent.

The home inspection process is where many deals fall apart. Stay focused and try not to let your emotions get the best of you, otherwise be prepared for a lot of antacid and sleepless nights.

 

If you liked this post, please subscribe to our blog. We always appreciate having new readers and more importantly, enjoy making new friends.

 

Here are some of our others posts that may interest you as well:

One Question That You Absolutely Must Ask Your Clients

5 Reasons Why Using A Local Agent Is Better

Cool Virtual Tool To Help Pick Out Paint Color

Is Social Media Killing Confidentiality?

Real Estate Agents Are Not Just Door Openers

 

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About The Authors:

Dan and Amy Schuman are agents with Howard Hanna, the area's largest real estate company. They live in Solon Ohio and specialize in Cleveland Luxury Homes, working with buyers relocating to Cleveland, and first-time buyers.

 

LET'S CONNECT:

 

    

 

Taking The Stress Out Of Home Inspections is the property of The Schuman Team and may not be duplicated or used without their written consent. ©April 2012

 

It's A Tough Job But Someones Gotta Do It

When you think of dangerous jobs, you may think of a police officer, firefighter or someone who works high above the ground, like a construction worker on a tall commercial building. But what about those of us who sell real estate for a living?

Most people don't understand how dangerous our profession can be, so we wanted to share some things to educate the public.

OPEN HOUSES CAN BE AN INVITATION FOR TROUBLE

Open houses can be down right dangerous. When we have an open house, the entire public is invited to stop by. We agents are putting ourselves in a very vulnerable position here, as we are often sitting at a home, sometimes vacant, by ourselves. Every year, there are stories of agents being threatened or attacked at open houses. This can happen in any city and in any type of neighborhood.

Most veteran agents can relay numerous odd and sometimes dangerous encounters they've had with strangers at an open house.  In fact, an agent in my office had this near miss a few years ago.

She was at a very large home in an upscale neighborhood. A man came in, noticed there were some other people walking around, and left.  He later came back with another man while the agent was by herself and  asked the agent if she would show them around the basement.  Luckily, this agent sensed danger and refused to go into a closed area of the home with strangers. She thought quick on her feet and told the men she has to walk outside to return a phone call  ( she called for help ), and the men ended up leaving without incident.

THE INTERNET HAS CREATED A CULTURE OF CHAOS

Back before the Internet existed, buyers had to visit their local real estate office and meet with an agent if they wanted to see homes for sale. Listings were kept in books that were not available to the public.

Today, as we all know, information is available on line. Buyers can now see detailed information on every home on the market. Then, if they don't have an agent, they often call the listing agent to show them a home they like.  Unfortunately, many agents will end up meeting a total stranger to open up a home, some which are vacant or isolated.  Can you see the danger of operating in this manner? Could you imagine a lawyer or accountant doing this?

The sad reality is that because real estate agents are on commission, they often disregard their personal safety in hopes of meeting a new client and making a possible sale.

AGENTS GET SMART AND DEFENSIVE

Some real estate agents have resorted to defensive tactics to ensure their safety. Some agents have taken self-defense classes, some carry concealed weapons, and others simply try to work smart by not putting themselves in a bad situation. Many will work open houses with a partner and will only meet strangers at their office.

 

While we don't rescue people out of burning buildings or stand on a scaffold hundreds of feet from the ground, there are dangers of being a real estate agent. So, when you deal with one of us, please be respectful of our desire to get to know you first before we just put you in our car or meet you at a vacant home.

 

If you liked this post, please subscribe to our blog. We always appreciate having new readers and more importantly, enjoy making new friends.

 

If you enjoyed this article, here are some others that may interest you as well:

Regarding Social Media, Are You A Sitcom, Drama, or Informercial?

Real Estate Agents Are Not Just Door Openers

Is Zillow Really Accurate? Take A Look For Yourself

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About The Authors:

Dan and Amy Schuman service the Cleveland, Oh metropolitan area and specialize in Cleveland luxury homes and working with buyers relocating to Cleveland.

 

 LET'S CONNECT:

 

It's A Tough Job But Someones Gotta Do It is the property of The Schuman Team and may not be duplicated or used without their written consent. ©March, 2011

Videos Of Solon Ohio Neighborhoods

While we thoroughly enjoy writing about the different neighborhoods here in Solon, Ohio, we find that videos can be even more helpful, especially to those not familiar with the area.

People relocating to the Cleveland area want to learn as much as possible about the different housing in the area, and photos that are available on line don't always reflect the true essence of that home and neighborhood. With that being said,  here are some great videos of Solon neighborhoods.

1. Signature of Solon

2. Thornbury Of Solon

3. Chagrin Highlands

4. Huntington Woods

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About The Authors:

Dan and Amy Schuman live on the East side of Cleveland and specialize in Cleveland Luxury Homes, working with buyers relocating to Cleveland, and first-time buyers.

For Ohio and Solon Oh real estate and homes see  Solon OH Real Estate

For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235 or email.

 

 

 

 LET'S CONNECT:

 

Videos Of Solon Ohio Neighborhoods is the property of The Schuman Team and may not be duplicated or used without their written consent. ©December, 2010

 What Is More Important:

                      The Home                          OR                         The Neighborhood?

 

    

 

We just had a rather healthy debate with some other agents about this topic. We were asked in a group setting what is more important to today's buyers, the home or the neighborhood ( we couldn't answer both ).

While it's hard to make a blanket statement, based on our personal experience, many of our buyers seem to be focused on the "home". Maybe even a little too much.

In today's market, we understand that buyers "want it all" when it comes to finding a home. The home has to look a certain way on the outside, the floor plan must be just right, and room sizes must be perfect as well.  It also must be a finished product and done to their tastes, because many of today's buyers lack vision or simply don't want to do any work themselves. Oh yeah, and it would be nice if it's in a neighborhood or area that they like as well.

On the flip side, when we talk to our selling clients and ask what they will miss the most, they rarely mention their home. Most say they will miss the neighborhood, the proximity to schools, or the friendships they've developed in the community. Rarely do we ever hear "I'm really going to miss this huge dining room that we just had to have when we bought the home because it perfectly fit our antique dining room set".

I'm not saying people don't love their home. It seems though that once someone moves in and starts living in a home, the more they begin to appreciate the other features such as location, amenities, and the neighborhood. The home often becomes secondary after time.

So what is really more important, the home or the neighborhood? It seems to depend on where you are in the cycle. However, we think that today's home buyers would be wise to "relax" just a little bit about not getting every little thing they want, and focus on the big picture of what will most likely make them happy in the long run.

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About The Authors:

Dan and Amy Schuman live on the East side of Cleveland and specialize in Cleveland Luxury Homes, working with buyers relocating to Cleveland, and first-time buyers.

For Ohio and Cleveland Oh real estate and homes see  Cleveland OH real estate

For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235 or email.

 

 

  

 LET'S CONNECT:

  

What Is More Important, the home or the neighborhood is the property of The Schuman Team and may not be duplicated or used without their written consent. ©November, 2010

For Sale By Owner Horror Stories - Originally Posted at Cleveland Real Estate Blog

 

 

 

Buying a home is a complex transaction and involves an element of risk. There is even greater risk and increased frustration when someone buys a home and no real estate agents are involved. This post shows real life horror stories from buyers who bought a home without using an agent.

To begin, I understand that some sellers decide to sell without using an agent, and that is certainly their right. However, I do feel strongly that a home buyer is doing themselves a huge disservice by working directly with a FSBO ( For Sale By Owner - those selling without an agent ). Here are just a few examples of things I have personally seen happen to buyers who decided not to hire an agent:

1.     One buyer found out, after it was too late, that the home they bought was not in the school district they wanted. The home was located on one of few streets in that particular suburb that did not fall into the main school district. Could you imagine having to tell your children that not only are they moving, but will be required to change schools as well? 

2.     A buyer encountered water in the basement of their new home. The sellers never gave the buyers the state mandated Residential Property Disclosure Form which requires disclosure of known problems. The next door neighbors, however, were more than forthcoming to the new buyers about mentioning all the water problems the previous sellers had. The buyers had to hire an attorney and spend thousands of dollars taking the seller to court.

3.     Buyers of a luxury home understood up front that the roof of a home they were buying was nearing the end of it's life. After closing and moving in to the home, the buyers got an unpleasant surprise. They found out that the local association governing their neighborhood dictated that all roofs needed to be a certain type, one that cost 3-4 times as much as a standard roof. Knowing this information up front may have changed their approach during negotiations.

4.     Buyers who relocated from out of state bought a home in an area they were not familiar with. After moving in, they found out that a commercial building was going to be built nearby, visible from their new home and likely to increase nearby traffic.

5.     Buyers overpaid by tens of thousands of dollars. The buyer actually told me "we definitely overpaid, but we really liked the home." It is very difficult to remove yourself emotionally and make wise business decisions when you represent yourself.

A good local agent would have been extremely helpful to these buyers, not to mention save them a lot of time, money and/or inconvenience.

Listen, there are plenty of things that you can do by yourself, but buying a home should not be one of them. If buying a home is not something you do on a daily basis, why would you think you are better off navigating through the process on your own? Wouldn't having an agent, someone who does this for a living, make more sense?

Based on the examples given above, buying a home is a complex transaction and comes with risk. Buying without an agent increases your risk and puts you at a huge disadvantage, so do yourself a favor and hire a knowledgeable real estate agent, or you may end up on this list some day.

If you enjoyed this article, here are some others that may interest you as well:

Real Estate Agents Are Not Just Door Openers

Is Zillow Really Accurate? Take A Look For Yourself

How Much Can I Get That Home For? 

Moving Up In A Down Market Makes Sense 

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About The Authors:

Dan and Amy Schuman live on the East side of Cleveland and specialize in Cleveland Luxury Homes, working with buyers relocating to Cleveland, and first-time buyers.

For Ohio and Cleveland Oh real estate and homes see  Cleveland OH real estate

For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235 or email.

 

 

  

 LET'S CONNECT:

  

For Sale By Owner Horror Stories is the property of The Schuman Team and may not be duplicated or used without their written consent. ©November, 2010

Disclaimer: The Schuman Team practices real estate in Ohio. Since many states have different laws and protocol regarding a real estate transaction, we recommend consulting a qualified local legal professional prior to entering into any written agreement. This blog contains observations and opinions related to our first hand experience working with buyers and sellers in Ohio, but should not be construed as legal advice.  Accuracy is not guaranteed.  

Real Estate Agents Are Not Just Door Openers- What A Buyer's Agent Really Does

 

 

There are a lot of home buyers out there that think real estate agents merely drive people around, unlock doors and let people inside homes.  Some even view us as glorified taxi drivers.  However, the truth is that during the course of a transaction, we end up "wearing many hats" as the process is quite complicated.  With that in mind, we are writing today to educate home buyers of the many benefits of using a buyer's agent.

Here is just a small list of things a buyer's agent does for their clients:

1.   Educate a buyer regarding the home buying process, including explaining fair housing laws and agency relationships.

2.   Preview homes in advance and also find "off market" opportunities including"pocket listings" - saving valuable time.

3.   Discuss advantages and disadvantages of different types of housing and specific features of homes that may affect resale.

4.   Assist with financing.

5.   Provide information on schools, neighborhoods and places of interest.

6.   Help with market stats.

7.   Negotiate offers on buyer's behalf to get them the best price and terms.

8.   Explain the home inspection process, provide names of inspectors, and help buyers navigate through the often difficult stages of this step in the home buying process.

9.   Ensure contract conditions and deadlines are met.

10.  REPRESENT YOUR BEST INTERESTS AT ALL TIMES - BECAUSE THE LISTING AGENT WILL NOT AND CANNOT REPRESENT YOU!

Obviously, though not on the list, we will certainly schedule and show you homes.  Before we show you homes though, we always recommend that you meet with us so we can get to know what you are looking for in a home, neighborhood, etc.  The more we know about you and your needs, the easier it will be for us to find you that perfect home.

If you are a home buyer that is just calling listing agents of homes you like on line, do yourself a favor and commit to one agent to represent you.  Otherwise, you are missing out.

Remember, it does not cost you money to hire a buyer's agent as the seller pays all commission.  Also, if you decide to work directly with the listing agent, you will not get representation as that agent will either represent the seller, or if they practice dual agency, neither. 

Hopefully, you now have a good understanding of the many things we offer our buyers and you will view us as more than your personal "cab".

Here are other articles of interest pertaining to home buying:

Buying A Home In Cleveland - The Complete Guide 

Buying A Home - How To Choose A Neighborhood 

Agency in Ohio - Why Using A Buyer's Agent Is Important 

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About The Authors:

This information is provided compliments of Amy and Dan Schuman, The Schuman Team Keller Williams Realty. The Schumans are residents of Solon OH and have worked with numerous professional athletes, business owners, and executives who are relocating to Cleveland.

If you are looking to buy or sell Cleveland OH real estate, including the surrounding suburbs, please contact the Schuman Team at 216-346-3235. 

SEE ALL CLEVELAND OH AREA HOMES FOR SALE BY CLICKING BELOW:

 CHECK OUT THE SCHUMAN TEAM'S AWARD-WINNING WEBSITE

 

Real Estate Agents Are Not Just Door Openers - What A Buyer's Agent Really Does is the property of The Schuman Team and may not be duplicated or used without their written consent. ©July2010    

Disclaimer: The Schuman Team practices real estate in Ohio. Since many states have different laws and protocol regarding a real estate transaction, we recommend consulting a qualified local legal professional prior to entering into any written agreement. This blog contains observations and opinions related to our first hand experience working with buyers and sellers in Ohio, but should not be construed as legal advice.  Accuracy is not guaranteed.  

Cleveland Ohio Real Estate - Access To Home Denied Until Title Transfer! 

 

 

Once a buyer writes an earnest money check and invests time and money in a home inspection and appraisal, they often feel entitled to some sort of rights to the home.

However, here's the reality: until title transfers, the home still belongs to the sellers. The buyer  does not own the home yet and  has no rights to get inside the home after inspections and prior to possession.

We understand that buyers get excited about their new home. They can't wait to show it to their family, friends, and possibly even let in contractors for estimates on work to be done. Unfortunately, there is no open door policy between buyer and seller. While many sellers are fairly agreeable and accommodating to a buyer's request to get in the home throughout the buying process, this is not guaranteed.

I know what a lot of buyers are thinking, why wouldn't the seller just let us in if we give them advance notice?

Well, here are just a few reasons from a sellers' perspective:

1.     Nothing good can happen by letting you in more than necessary. What happens if a buyer notices a problem or defect in the home that they or their inspector never saw before? How about if the buyer comes back in the home with a parent or close friend who ends up not liking the home or thinks they overpaid? In general, many sellers feel that letting a buyer into the home is just asking for trouble.

2.     Insurance risks and inconvenience. There are always insurance risk involved anytime someone enters a home, especially during the winter months. And how about the inconvenience factor? Sometimes letting a buyer into a home is a hassle for the sellers, especially if there is an alarm to deal with, dogs to lock up, or young children to manage.

3.      Security risks. Every time a buyer goes into a home, there is always the chance doors won't get locked properly or lights will be left on. This is especially concerning in vacant homes when no one is there to follow up after the showing.

4.     Sellers are emotional about their home. Some sellers have an emotional attachment to their home and every time the buyer comes in is another painful reminder of the move. If dealing with an emotional seller, we advise our buyers to be tactful if ever entering a home with a decorator or contractor as the seller may be less than thrilled to hear about the changes you plan on making to their home.

5.       Bad feelings between parties developed due to negotiations. If negotiations were contentious, or the buyer gave the seller a laundry list of items to be corrected prior to closing, the sellers could be a little annoyed, or downright angry. If this were the case, they may not be so inclined to do you any favors by letting you in the home more than necessary.

So, in order to avoid a lot of heartache and frustration, here are a few tips we recommend to avoid any problems.

Plan ahead for any access you may want to the home prior to getting the keys. Since the home inspection takes 2-3 hours, this is a perfect opportunity to coordinate others to see the home at this time.

You may also want to specify in the purchase agreement that you will be allowed access to the home after inspections, and spell out how often and when. This way all parties are clear of expectations. If it is not in writing, then you as the buyer are not protected and are at the mercy of the seller, whose attitude could change dramatically at any time.

Below are other articles of interest pertaining to buying a home in Cleveland:

Buying A Home In Cleveland - The Complete Guide 

Buying A Home In Cleveland OH - Where To Buy 

Buying A Bank Owned Home In Cleveland 

Why Using A Buyers Agent Is Important

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About The Authors:

Dan and Amy Schuman are Solon OH residents. They specialize in Cleveland luxury homes, working with buyers relocating to Solon, and first-time buyers.

For Ohio and Cleveland OH real estate and homes see Cleveland real estate

For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235.

VIEW ALL CLEVELAND OH HOMES FOR SALE BY CLICKING BELOW

 

 

CHECK OUT THE SCHUMAN TEAM'S AWARD-WINNING WEBSITE

 

Cleveland Ohio Real Estate - Access To Home Denied Until Title Transfer!  is the property of The Schuman Team and may not be duplicated or used without their written consent. ©May,2010  

Cleveland Ohio Real Estate - What Happens After The Home Inspection

  

In this article, we will discuss the post-inspection process when buying a home here in Cleveland and give suggestions on how to move forward in a smooth manner in order to get what you want.

At this point in the process, we will assume that you have thoroughly gone over the inspection report and discussed issues of concern directly with the home inspector. While discussion here will be limited to post inspection issues only, you can read about the entire buying process by viewing the link below:

 A Complete Guide To Buying A Home in Cleveland

One of the most stressful parts of the home buying process can be dealing with post-inspection issues. Depending on how you proceed, this next step can lead to round 2 of negotiations. Regardless of how round 1 went, this particular step can be very unpredictable

Emotions on both sides are typically heightened at this point as both parties have time and or money vested into the transaction. The buyer has spent money on an inspection and possibly an appraisal, and the seller has taken their home off the market and possibly spurned other offers in hopes that the transaction will go through.

When buying a home in Cleveland, there are 3 official ways to respond to an inspection based on the wording of our standard purchase agreement:

 

1. If the inspection came out clean, you can remove the inspection contingency from the contract
2. If a major issue came up, like structural damage to the foundation, you can opt out of the agreement.
3. You can remove the inspection contingency from the contract based on conditions that you want addressed.

 Since #1 and #2 above are pretty clear cut, let's talk about how to handle #3. 

Normal protocol dictates that a seller will most likely address major health and safety issues either by offering to fix the problem or reduce the purchase price by the amount it would take to fix it. These types of things would include mold or radon remediation, electrical code violations, or anything else deemed by the inspector to be related to health and safety.

Many buyers prefer to submit a cost estimate to the sellers and simply have this amount reduced from the purchase price rather than ask the seller to repair something. This gives them control on how it gets fixed and by whom.

Be aware that every situation is different, so don't assume a seller will address any and all of these issues.

Here are some important concepts to understand as you move forward with the post-inspection process:

1.  The home inspection should not be used solely as a way to re-negotiate a better price. A lot of buyers make the mistake of buying a home, feeling that they overpaid for it ( many buyers feel this way after the initial negotiations ), and then using the inspection report to re-negotiate the price. This is not the best way to view the process.

2.  You are purchasing the home in its as is condition and your offer should have reflected this. Your initial offer should have been made based on the current condition of the home and the information you had up front.  Asking the seller to reduce the purchase price by $800 to compensate for a hot water tank that you knew up front was 15 years old would most likely be seen as disingenuous to the negotiating process and may hurt your efforts to get additional concessions.

3.  An inspectors advice about negotiating should be taken with a grain of salt. While most inspectors stick to presenting the facts, some interject their opinions or thoughts. I once had an inspector say to my buyer " if it were me, I would make the sellers do .........."   and none of these were health or safety issues.  Remember, the inspector is not the one making the buying decision and is not aware of the dynamics of the transaction. The inspector may have great technical skills regarding a home, but that doesn't make him is a good negotiator.

4.  Presenting sellers with a lengthy list of items to fix may be a poor strategy for getting what you really want.  A major mistake buyers make is putting together a "laundry list" of things they want the seller to fix, knowing that many of the items are trivial and probably won't be addressed. The mentality here is that if you ask for 10 items, maybe they'll do 5. However, this approach may really tick off the sellers and backfire on you.

5.  Keep your list short and sweet. If there are only a few items that are really important to you, ask for these to be addressed. Is it worth the risk of alienating the sellers by presenting them with a lengthy list of demands? Your agent can communicate that you could have asked for more things, but asked for only the most important, just to be fair. Sellers will typically appreciate and respond better to this approach.

Before deciding on what items you want the seller to fix, think very carefully about your approach during this critical stage of the home buying process. Being fair, reasonable, and most important, courteous toward the seller shouldn't be overlooked.  Sometimes getting what you want is all in the approach and the way you ask. 

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About The Authors:

Dan and Amy Schuman are Solon OH residents. They specialize in Cleveland luxury homes, working with buyers relocating to Solon, and first-time buyers.

For Ohio and Cleveland OH real estate and homes see Cleveland real estate

For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235.

VIEW ALL CLEVELAND OH HOMES FOR SALE BY CLICKING BELOW

 

 

CHECK OUT THE SCHUMAN TEAM'S AWARD-WINNING WEBSITE

 

Cleveland Ohio Real Estate - What Happens After The Home Inspection is the property of The Schuman Team and may not be duplicated or used without their written consent. ©May,2010  

 

Whenever we have our initial meeting with our buyers, we always ask them detailed questions about what they are looking for in a home. Included in our list of questions is "what 3-5 things must your next home have?" We then go on to formulate a list of "must haves" and "wants" in an effort to find them the right match.

In our experience, however, at least 50% of buyers end up buying something that did not fit their original parameters. Although buyers may say they absolutely positively need something, they will often fall in love with a home that may not have everything they initially said they wanted.

Here are some examples of what some of our buyers initially said they wanted, and what they ended up buying:

WANTED                                              BOUGHT

4 BR home                                           3BR home, with an additional office/den

3 car garage                                        perfect home, but had a 2 car garage

older home with charm                        new construction

home on 1 acre                                    townhouse

home in city X                                      home in city Y

brick colonial                                        vinyl sided ranch

  

Think about this another way. If you are married or have a significant other, is your spouse exactly like you had imagined he or she would be? In our case, my wife wanted tall, dark, and handsome, and got me instead. In fact, she was hesitant to even go on a date with me when we first met because she didn't think I was "her type."  By keeping an open mind, Amy found the man of her dreams ( me ) and 13 years later, we've never been happier.

So, although buyers think they know exactly what they want, we think it's best to communicate with your agent regarding what you want and why and be open to some suggestions from us on homes that you may not have originally considered.

If you keep an open mind to looking at homes that may not fit your exact parameters,  you may be surprised at what you end up falling in love with and buying.

 

Here are some other articles of interest for buyers:

Moving Up In A Down Market Can Make Sense 

How Much Can I Get That Home For?

Why Using A Buyer's Agent Is Important

How Long Home Components Should Last

 

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About The Authors:

This information is provided compliments of Amy and Dan Schuman, The Schuman Team Keller Williams Realty. The Schumans service primarily the Eastern suburbs of Cleveland have worked with numerous professional athletes, business owners, and executives who are relocating to Cleveland. They specialize in the Cleveland Ohio luxury home market and also enjoy working with first-time buyers as well.

If you are looking to buy or sell Cleveland real estate, including the surrounding suburbs, please contact the Schuman Team at 216-346-3235. 

SEE ALL CLEVELAND AREA HOMES FOR SALE BY CLICKING BELOW:

 CHECK OUT THE SCHUMAN TEAM'S AWARD-WINNING WEBSITE

 

Buyers- Open Your Mind And You May Be Surprised What You Find is the property of The Schuman Team and may not be duplicated or used without their written consent. ©Feb2010  

 

As  many people are aware, President Obama has official signed off on the Home Buyer Tax Credit Extension. We wrote an article last week about the specifics of the new or updated guidelines which you can read by clicking here.

In an effort to educate consumers on the specifics of the extension, the National Association of REALTORS® Government Affairs Division has put together an informative list of common questions and answers and we thought it would be helpful if we shared it with you.

Here are some of the most frequently asked questions on the changes to the Home Buyer Tax Credit, provided by the National Association of REALTORS®. 

 

Question: Existing homeowner credit: Must the new house cost more than the old house?

Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who

meet all eligibility requirements will qualify for the $6500 credit.

 

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a

new home. I have lived in my current home for more than 5 consecutive years and am within the new

 income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time

 I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment

(when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely

 to the date of purchase, which is generally the date of settlement.

 

Question:I am a first time home buyer but was not within the prior income limits at the time I entered into

 my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the

 new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

 Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill.

The income limit and other eligibility rules will look to your status as of the date of purchase,

which is the settlement date. So if the new rules have been signed when you go to settlement,

you should be eligible for the credit (or a portion of the credit if you're within the phaseout

range).

 

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found

a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any

 amountabove $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an

absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting

since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the

other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you

will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until

2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible

for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the

last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he

did since 3 years doesn't impact eligibility.

Question: I am an eligible first time home buyer. I entered into a contract to purchase on November 1,

2009. Do I have to go to closing before December 1? How does the extension date affect me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as

if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst

case), the purchaser will be eligible for the credit.

 

An important thing to note about the Home Buyer Tax Credit is that first time buyers are eligible to receive UP TO$8000, depending on the price of the home they buy. While most buyers assume they get an $8000 credit automatically, the actual credit is  "the lessor of 10% of the purchase price or $8000". Therefore, if someone buys a home for $60,000, they will only be eligible for a $6000 credit.

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About The Authors:

This information is provided compliments of Amy and Dan Schuman, The Schuman Team Keller Williams Realty. The Schumans service both the East and West sides of Cleveland and have worked with numerous professional athletes, business owners, and executives who are relocating to Cleveland. They specialize in the Cleveland Ohio luxury home market and also enjoy working with first-time buyers as well.

If you are looking to buy or sell Cleveland real estate, including the surrounding suburbs, please contact the Schuman Team at 216-346-3235. 

SEE ALL CLEVELAND AREA HOMES FOR SALE BY CLICKING BELOW:

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Buying A Home In Cleveland: Tax Buyer Credit Frequently Asked Questions is the property of The Schuman Team and may not be duplicated or used without their written consent. ©Nov 2009