What Does “FHA Approved Condo” mean?

If you’re looking to buy a condo, you may be wondering what FHA-approved means and whether or not it’s important for your purposes. (It is!) Whether or not a unit/building is FHA-approved will affect the type of housing loan you can qualify for. Recent changes in requirements by the U.S. Department of Housing and Urban Development have affected FHA approvals, especially regarding condos; now, the entire complex must be FHA-approved before the agency will agree to back a loan on any one unit.

FHA loans are often sought after by homebuyers because those who are qualified can purchase a home/condo for as little as 3.5% down, which is much lower than typical home loans will offer; conventional mortgage lenders usually require at least a 20% down payment, which isn’t feasible for many, especially first-time, homebuyers.

What this means for you as the buyer, is that the complex you choose to buy a condo in could very well determine your loan eligibility. If you move into a complex that isn’t FHA-approved, you can’t appeal to have your individual unit approved, and so you aren’t eligible for the 3.5% down perk. Putting less down on a property is ideal for many buyers because it means you may not have to spend money you don’t have.

Condo associations that aren’t FHA-approved typically have high delinquency rates, which disqualifies them for approval. Changes made by the U.S. Department of Housing and Urban Development have extended the ‘past due’ cut off for associations, so now, no more than 15% of the total units in a complex can be more than 60 days past due on assessment payments (versus 30 days past due before).

Such a modification to the requirements of the FHA-approval policy will allow more condo associations to qualify for FHA-approval, which means larger and better pickings for buyers looking for a condo. Additionally, another modification to the policy allows for mixed-use complexes (residential and commercial) to qualify for FHA-approval, provided they meet the other requirements. So if you find yourself looking at a complex with office/retail and residential space, don’t write it off because the association may actually be FHA-approved.

For any buyer who isn’t able or willing to put 20% down on a property, which is typically especially true for first time homebuyers, seeking a condo in an FHA-approved complex is the route to go. These properties are easier to finance because they meet requirements set forth by the U.S. Department of Housing and Urban Development, meaning these properties are typically in good condition and in good areas. Talk to your realtor and/or the condo association if you’re unsure of whether or not a complex is FHA-approved.

For more information on FHA-approved properties, check out this article from the Chicago Tribune or this one from the National Association of Realtors.

 

Things To Do Near Lakewood, OH – May 2013

Looking for something to do near Lakewood, Ohio this month? Check out these upcoming events for May…

Live Well Lakewood Fit in 5 Walking Challenge

When: Wednesdays, May 8 – June 12, 2013 5:30 PM – 8:00 PM

Where: Woman’s Club Pavilion, Lakewood Park

Details: Join LWL for our 4th Annual Walking Challenge to be held at Lakewood Park, Women’s Pavilion, Wednesday evenings at 6:30 PM, May 8th through June 12th.The first walk Wednesday, May 8th will be 1 mile. Each week we will increase our distance by 1/2 mile to reach our goal of 3 miles. Participants walk at their own pace and can share our walking goals or set their own. WE WALK RAIN OR SHINE! On June 12th you can celebrate at our potluck dinner at the Women’s Pavilion if you attend at least 3 out of 5 sessions. Registration & Free Health Screenings 5:30 – 6:30 PM, 1 Mile Walk 6:30 PM.

Keep Lakewood Beautiful Spring Humus Sale

When: Saturday, May 11, 2013 9:00 AM – 12:00 PM

Where: Skate House/Old Stone House parking lot at Lakewood Park

Details: Stop by the Keep Lakewood Beautiful annual Spring Humus and Perennial Sale Saturday, May 11th from 9 a.m. to noon at the Old Stone House at Lakewood Park. Don’t miss this opportunity to purchase humus (aka “Black Gold”), perennials and herbs. Click here for more information.

Lakewood Hospital Ambulance Chase

When: May 5, 2013 7:30 am

Where: Race starts and finishes at Lakewood Park 14532 Lake Avenue

Details: 12th Annual AMBULANCE CHASE, Presented by Donald Martens & Sons  Ambulance Services, Inc. Proceeds benefit Lakewood Hospital’s Rehabilitation Services and a variety of Patient Care Programs. Ages 8 and under: no entry fee; registration required.

RACE SCHEDULE

7:30 AM / Race Day Registration

8:30 AM / 1 Mile Walk

9:00 AM / 5K Run & Walk (B-Tag Timed)

9:45 AM / Children’s Chase

5K Run-Walk I 1 Mile Walk

 

5 Tips To “Luxurize” Your Home

In a tight market, the little things can make all the difference to potential buyers. The more appealing your home is to them, the more likely they are to buy it. Your home is special to you, so you want it to be a reflection of the memories that you have made; however, you also want it to reflect how someone else can begin making memories in it, too. Here are five ways to “luxurize” your home to make it more attractive to potential buyers.

1. Deep Clean

This should go without saying, but you would be surprised how many people don’t even think about it. Before a showing, or maybe once a week, give your home a serious deep clean. Clean windows, vacuum and mop floors, and wash bedding and blankets. Cleaning is the easiest way to communicate to potential buyers that your home is a great home.

2. Use Air Fresheners

Believe it or not, one of the first things people notice in a home is the smell. You don’t want potential buyers to remember the stale smell of dirty laundry or strange smells coming from the kitchen trash, you want them to remember how beautiful your house is. Use plug-in or automatic air fresheners throughout the house to give a fresh, clean smell in every room.

3. De-Clutter

Along with the cleaning factor, comes the de-cluttering. There is nothing worse than opening the door to the master closet and seeing it packed full of stuff, giving the impression that the closet is too small to begin with. Use baskets and bins to organize folded garments and knick-knacks on the shelves, and use shoe racks on the ground to your shoes in order. If everything has an organized space, it gives the illusion that the closet is just fine no matter the size.

4. Use Comfy Throws & Blankets in Common Areas

Adding things like throw pillows and blankets to furniture in the family room is a great way to add a colorful touch to plain furniture. Try to match additions to the color scheme of the room so that everything ties together nicely.

5. Use Fresh, Clean Bedding

The first thing people see when they walk into a bedroom is the bed. Make a great first impression by using clean bedding in every room; additionally, make sure that each bed is made properly. Something as simple as that can add that extra luxurious touch.

Luxurizing your home is the easiest way to attract more buyers. Make your home so appealing that they will be able to see themselves living in it.

For more tips on making your home stand out to anyone, no matter what your motive may be, visit here.

3 Tips to Buying a Home in 2013

The real estate market is constantly changing. Over the past few years we have see a lot of ups and downs here in Northeast Ohio…

• An abundance of Short Sales and Foreclosure

• Investors coming out of the woodwork to flip homes to sell or rent

• Depreciation of home values in some areas

• First-Time Home Buyer Tax Credit Incentives

• Great deals for Buyers

• Low Interest Rates

• and more…

This year we are seeing a completely different real estate market. The inventory is a little lower, home prices are a little higher, and interest rates are changing. It looks like we are headed into a more stable market.

So what do you need to do to be ready to buy a home in 2013? Here are 3 easy tips…

1. Find a Lender

Having an experienced, reliable lender is one of the key factors to a smooth and successful home buying experience. Here are a few things to look for in a lender…

• Help you choose the right loan for you

• Educate you on what your options are

• Help to prepare you for what you need to do and know along the way

• Communication is key!

2. Find a Real Estate Agent

Some buyers do research and ask around to find their real estate agent, some do not and just start working with the first agent that comes along. You might get lucky, but the better option would be to find an experienced real estate agent. Don’t be afraid to interview several agents before choosing one that is right for you. Afterall, this is one of the biggest purchases you will ever make! Here are a few things to look out for in a real estate agent…

• Know the area

• Testimonials

• Communication

• Buy incentive and options

• Prepare you for what to expect along the way

3. Educate Yourself

It is important to do a little research and educate yourself before diving into the housing market this year. So start “googling”, interviewing lenders and real estate agents and get the info you need up front before settling down. Here are a few tips…

• Where do you want to live?

• What down payment do you need?

• What are the costs involved in buying a home?

• Make a list of things you HAVE to have, WANT, and DO NOT WANT in your next home.

• Who is involved in the final decision? Get them on board.

• Interview Lenders

• Interview Real Estate Agents

• Check your credit score

There are a lot of questions you might have about the home buying process. Make sure to ask the professionals and choose people who will support you along the way.

6 Reasons Your Home is Not Selling

Are you having trouble selling your home? There are many reasons why your home might not be selling. According to an article from RIS Media and many years of experience in the industry, here are some issues that may not be as obvious, but are still preventing the sale of your home…

1. Your Home Is Not Easily Accessible For Showings

Are you getting a lot of showing requests that you are turning down? Many sellers make the mistake of not accommodating a buyer’s request for showings because requested showing times are inconvenience to the seller. Try and remember that your home is a product for sale. Do whatever you can to cooperate with showing requests, even if they are last minute or on off hours.

2. Pets

Pet problems can go beyond unfriendly pet barking or jumping on a potential buyer. Pet owners need to go to extra lengths to make sure to remove pet hair and keep odor to a minimum. Take your pets out of the house during showings or make sure they are crated. A potential buyer is there to view the home that is for sale and should not have to worry what your pet is going to do.

3. Not Aggressively Marketing Your Home

Is your home listed on MLS and public websites? Most buyers are shopping for a home online these days, so having an online presence is highly important. If you are dissatisfied with how your home is being marketed, you may need to sit down for a brainstorming session with your agent.

4. Your Agent is Not Familiar With Your Area

Did you list your home with an agent from outside of your area? Do they know much about your market? If your agent knows little about the market how can they properly position your property for sale? They may be missing the important selling features of your home.

5. Pictures

89% of homes buyers start their search online before calling an agent. Even when they have an agent, they are still viewing your home online before setting up a showing. So their first impression of your home is through the pictures that are displayed on the MLS and other real estate websites. Make sure the pictures of your home make a good impression and invite buyers to want to set up a showing.

6. Price

Before listing your home, your real estate agent most likely showed you the comparables and market statistics for what others homes are selling for in your area. If your home is not priced properly, you could be missing out on potential buyers. The market stats don’t lie, make sure you pay attention to them and the advice of your agent to price your home properly for today’s market. No matter what you paid for it or how much money you spent fixing it up over the years, make sure to pay attention to the statistics.

Events Near Lakewood, OH – April 2013

Check out the upcoming events near Lakewood, Ohio this month!

The House of Blue Leaves

When: Every Weekend, 8:00 PM (Friday and Saturday), 3:00 PM (Sunday)

Where: Mackey Main Stage

Price: $10 – $30

This is considered John Guare’s most popular and arguably most important play, starring an aspiring singer trying to pursue his dreams. It is the perfect show to see after a dinner date or on a rainy April afternoon.

 

Lakewood Police D.A.R.E. Basketball Tournament

When: April 13, 9:00 AM – 2:00 PM

Where: Lakewood High School

Price: Free to attend

The Lakewood Police Department D.A.R.E. Unit is holding its annual basketball tournament for fifth grade students. Admission is free, so bring the whole family out to watch a day of friendly competition.

 

Heights Holistic Fair

When: April 13, 10:00 AM – 6:00 PM

Where: The Open Office Community Space

Price $5

Spend the day learning about holistic health and sustainable living. The event includes products like organic clothing, jewelry and soap.  It also includes services like aromatherapy and yoga.

 

Spring Stroll & Fashion Show

When: April 27, 12:30 – 5:00 PM

Where: Lakewood Masonic Temple

Price: $25 in advance, $35 at event

Head out to Lakewood’s Masonic Temple for a day of fashion and fun!  The second annual spring fashion show will take place after a tasting of foods from a few restaurants and grocers.  Following the show viewers are encouraged to walk down Detroit Avenue, where participating merchants will be offering specials.

 

2013 Rockin’ Marathon Relay Cleveland Zoo

When: April 27

Where Cleveland Metroparks Zoo

Price: $35 per person

Team up with your friends and take on 26.2 miles together.  Relay teams can consist of 2-4 people; while one person is running, the others are hanging out at the exchange zone.

 

Did we miss your favorite event? Let us know what fun things you’re doing this month!

 

What Does A Homeowners Association Fee Cover?

When looking to buy a home, make sure to check if the neighborhood has a Homeowners Association. An HOA will help regulate the neighborhood keeping up with common areas, restrictions and guidelines to keep the neighborhood in tip top shape, and more. If you are buying a single family home, there may not always be a HOA or an HOA fee to worry about. If you are buying a condo, there will always be an HOA with HOA dues that cover a laundry list of things for you.

Below are a few of the things that are covered but keep in mind each association is different and it depends on if you are buying a condo or single family home…

• City Services- Including services such as trash removal, water and sewage.

• Insurance- This only includes insurance for damage of the outside of the building and the property around it. You will still need to purchase your own insurance policy to cover everything on the inside of your home.

• Lawn Care- This covers snow removal, gardening and general lawn maintenance as well as essential tree removal and mulching.

• Pest Control- Most HOAs schedule a monthly inspection from a pest control company in order to avoid pest infestation.

• Maintenance and Repairs to the Outside of the Building- This includes things such as roof leaks, exterior painting, driveway pavement repairs, gutter repair, Carports, lighting, security systems, gated entries, mailboxes, etc.

• Amenities- HOA can sometimes cover community amenities such as a gym, tennis court, walking trails, pool or playground. It will also cover the cost of maintaining these amenities.

• Special Assessments- This is an account that the HOA uses to pay for unexpected communal expenses. If a tornado or fire destroys communal property for instance, HOA fees can cover a percentage of the repair costs.

• Premiums for Disaster Insurance- Keep in mind they do not pay for individual homeowners insurance coverage.

If paying HOA fees every month doesn’t bother you then you should consider purchasing a home with a Homeowners Association and the labor-free amenities it comes with. You do want to keep in mind however, that HOA fees can increase each year as the cost of services increases.

Read more here.

 

Your Spring Home Maintenance Checklist

As you go about your annual spring cleaning rituals, take a few additional steps to save money on energy bills, improve your home’s appearance and ward off big-ticket repairs later.

Here are 10 things for you to help prepare your home for warmer months and keep it in top shape…

1. Inspect the AC: For about $75 to $200, a technician will tune up your cooling system and make sure you don’t spend the first hot weekend of the year with an out-of-commission air conditioner. Dirty filters make your air conditioner work harder, increasing energy costs and possibly damaging your equipment. Check them monthly and replace them as needed!

2. Clean Out The Gutters: Gutter cleaning generally costs $90 to $225 for a 2,000 square-foot home.

3. Repair Your Roof: An easy way to inspect the roof to find damage is to use a pair of binoculars. If need be, hire a handyman or a roofer to repair any missing shingles or other damages. Make sure to clean out roof drains to avoid damaging the roof and causing leaks.

4. Pressure Wash Your Home: Clean your home’s exterior to remove accumulated dirt, mold and stains from the siding, deck, sidewalks, driveway, garage floor, fences, and lawn furniture. You can rent a pressure washer or hire someone to help.

5. Wash The Windows

6. Prepare To Mow: A dull lawn mower blade doesn’t slice, but instead tears grass leaving it vulnerable to disease, sun damage, and insects. A blade typically needs sharpening once or twice a year, or more often depending on how big your yard is.

7. Lose The Lint: Make sure to clean your clothes dryer’s lint trap before every use. A clogged vent can reduce your dryer’s efficiency and create a fire hazard.

8. Put The Temperature on Autopilot: For an initial investment of $50 to $150 dollars for a programmable thermostat, you can save about $180 annually on cooling and heating bills. Set the hold feature for a constant, efficient temperature when you’re away for the weekend or on vacation.

9. Caulk The Cracks: If the gap around a door or a window is wider than a nickel, you need to reapply exterior caulk. Add weatherstripping around doors, making sure that you cant see any daylight from the inside of your home.

10. Repair Sidewalks and Driveways: Fix any breakdown in concrete or asphalt before it worsens. You can patch or fill surface cracks, chips or flaking concrete yourself using cement repair products. For deeper cracks, call a professional. To increase the longevity of your driveway, have asphalt resealed every two to five years, depending on climate and wear patterns. Have concrete resealed every one to three years.

For more tips to prepare your home for spring click here.

Fix These 4 Things Before Selling Your Home

With the housing market continuing to improve every year, it’s important to be smart about selling your home in 2013. With more and more homes on the market to compete with, you need to make sure that your home is looking fabulous if you want to get top dollar for it. A little TLC and the help from a handy friend is really all you need to get your home ready to sell. Pay special attention to fix these 4 things before trying to sell your home!

1. Out-of-control landscape: The first thing buyers will see when they come to your open house is the exterior. You need to make a good first impression with a nicely pruned and well-taken care of landscape, or else you run the risk of buyers driving right on by to look at houses that have better curb appeal. This is a cheap, and easy fix, so there’s no excuse to skip it! Depending on the weather in your area, you’ll need to mow the grass and water the plants, or shovel the snow off the driveway and walkways, or rake the leaves out of your yard.

2. Out-of-date paint: While whites, beiges, and other neutrals are the safest paint colors to choose when trying to sell your house, it’s okay to have some variety and add a little bit of oomph to your home with other colors. However, the paint inside of your home should follow a color scheme; that is, don’t try to sell your home if you have a purple kitchen with bright yellow trim next to your chartreuse living room…chances are that color combination won’t appeal to most of your buyers. If you have crazy, bright, non-matching, or out-of-date paint colors in your home, it’s time to repaint!

3. Wallpaper and paneling: Just like with your paint colors and scheme, it can be hard to sell a home if your wallpaper is out-of-date. Stripping wallpaper can be a time-consuming process, but with a little elbow grease and help from some friends, stripping that old wallpaper and repainting can lead to a great ROI (return on investment) for your hard work. If you have old or damaged paneling, you’ll need to remove or replace that as well. This is a bigger and more time consuming task than removing wallpaper, but again, its something that will really make a difference when you’re trying to sell. Talk to your real estate agent or even an interior decorator about your options for updating your paneling.

4. Check your closet doors: Missing, damaged, or old closet doors are a hot button for many buyers. Before you try to sell (or even list) your home, make sure that all of the closets in your house have up-to-date doors, and it wouldn’t be a bad idea to match them with each other and the rest of your home. Additionally, make sure that all of the doors are installed and working properly!

 

For more tips on selling your home, check out this article from Inman News.

How To Win The Multiple Offer Bidding War

The current housing market is still in a slump, meaning that it’s a good time for buyers because house prices are still relatively low. However, low prices and a surplus of buyers means that you’ll have to compete to get the home you want. Many sellers are receiving multiple offers for their homes, so it’s important to know how to win the multiple offer bidding war. Here are some tips on how to compete as a buyer in today’s market.

Start by doing some research in the area in which you’re looking to buy. This includes looking at houses that are for sale and particularly at houses that have sold. The goal is to figure out the average selling price of comparable (to the home you’re looking to buy) homes in your area. This will help you determine if the home you want is over or underpriced. Knowing the average selling prices in an area will also allow you to understand what is and is not a reasonable offer to make.

It’s imperative that you make an offer that is reasonable for both you and the seller the first time around. This is because, in a market where you’re competing for a home, you may only get one chance to make an offer. Don’t make an offer that you aren’t comfortable with though, because you don’t want to have to worry about backing out of an offer once its been accepted.

Make yourself look more appealing to sellers by getting preapproved for a home loan. Sellers are more willing to work with and accept offers from buyers who have been preapproved for a home loan, because those buyers are less likely to be unable to pay for the home they’re bidding on. Also those buyers, who can afford to pay the down payment with cash look more attractive to buyers.

Avoid making too many contingencies in your offer. When you’re facing competition for a home, it’s advisable to limit your contingencies. Otherwise, the seller might be more inclined to accept another offer that doesn’t require as much out of them during the home buying/selling process.

Don’t skip the home inspection. You don’t have to request that all of the problems you find with the home be rectified in your offer. There’s a difference between wanting and needing something fixed. You should have the house inspected by a home inspector before you sign anything.

For the full article, click here.