Dayton real estate

Let’s Talk About TRID

December 18, 2015 By Teri Lussier

We know from the real estate crash of 2008 that there were a lot of people who bought homes without a thorough understanding of their mortgage. We know that some lenders were not forthcoming about disclosing the details of mortgages to their clients. All that has created new lending regulations in which lenders are now required to disclose details, make certain that clients understand their loans as best they can, and have documentation that shows clients were given details of the loan requirements and penalties. That’s all well and good. What this means for you as a home buyer or seller, is that starting in October, loans might take longer to process than before, and you might need extra time to close the loan than real estate professionals are typically accustomed to. The changes are known in the industry as TILA RESPA Integrated Disclosure, but your lender and Realtor are likely to call this, TRID.

Real estate contracts have a closing date written into them. This date is negotiable, is typically based on time needed for buyers and sellers to move, and on the ability of the buyer to obtain financing. In the past, as a rule of thumb for the Dayton area, barring any moving deadlines, sale contingencies, or specific directives from a lender, we were able to plan on a cash purchase taking about 2 weeks, a conventional loan 30-45 days, and a standard FHA loan about 45-60 days. More complicated loans do exist and we would work closely with the lender to try to determine a closing date. Once that closing date has been agreed to, to change it requires more negotiating and new signatures of all parties. It can get very difficult to renegotiate this date once it has been agreed to so we need to be as accurate as possible about this from the beginning. Having a knowledgable and communicative lender is crucial to getting solid closing information from the start, and with TRID changes, having a good lender is even more critical.

What TRID changes is how the loan and all costs associated with it, are disclosed, how the lender complies with those new rules, and the timeline for final delivery of the loan details to the buyer. This timeline can be fluid, creating difficulty with moving dates, same-day closings, and other logistic problems, and that’s why Realtors and lenders are advising building in extra time for closing. Borrowers will have three days after receipt of the Closing Disclosure to review the information, any changes that need to be made will start a new three day period. This could get tricky and that’s why you need a lender who will be proactive, and communicative with you and your agent from the very beginning. Check with your Realtor to make sure they have a closing cushion in the purchase contract. Some Realtors, myself included, are using an addendum that speaks directly to TRID regulations and discloses that government regulations must be met and any lender-required extensions will be agreed to, but in the end, this will compel all of us to work more closely than we might have in the past, which is great for buyers and sellers, and having the loan details spelled out to you so can be as informed about it as possible is something that should have been done all along.

Originally posted at www.TheBrickRanch.com

(Illustration by NicName, used with permission, text added by author.)

FHA Rule Changes Make It Easier To Buy and Sell Condos

November 23, 2015 By Teri Lussier

The 2008 crash was tough on real estate, but for condo owners, it was even more of a nightmare. For condo buyers to get an FHA loan on a condo, the entire condominium development had to qualify under strict rules. These rules had to do with the number of units that were owner-occupied, the type of insurance the condo HOA carried, the number of condos in foreclosure, etc. Not only were the rules themselves strict, but the approval process took a lot of time and effort for the HOA. Many condo developments were unable to meet FHA approval so anyone trying to sell a condo in an unapproved project was prevented from selling to a huge portion of potential buyers. Well, good news for condo owners- last week the FHA relaxed the rules for condo approval.

The three big changes include:
-Expanding the HOA insurance coverages.
-Revising the definition of Owner Occupancy- a huge deal for those condos that are used as second homes.
-Streamlining the condo development approval process

If you have a condo in a vacation area, or your condo is likely to appeal mostly to 1st time buyers or moderate-income buyers, these rules changes should make it easier for you to sell your condo. In addition, your HOA should be able to get FHA approval in a more timely manner, with fewer restrictions.

As an aside, one of the reasons Charlie Simms has been able to develop and sell so many townhouses in downtown Dayton, is that those developments are technically not condominiums, but rather Planned Unit Developments or PUDs. It’s a technical and legal distinction that changes how mortgages are approved and has meant that these units have always been eligible for FHA loans. Smart planning!

Currently, these FHA rule changes are only in effect for one year, so if you are an FHA buyer who is looking for a condo, move quickly to find your perfect space.

First Four Most Expensive Homes in the Dayton Area

March 18, 2015 By Teri Lussier

Luxury real estate is its own niche market, something most of us will only ever dream about. But it is still fascinating and a lot of fun to look at pictures, isn’t it? Everybody loves real estate porn. Dadaviz is a site that takes information and turns it into visually appealing and easy to understand infographics. This graphic from December 2014 shows the price of the most expensive home for sale in each state. Ohio is so affordable!

But let’s get our Dayton area real estate porn on. Checking the Dayton Area Board of Realtors site for homes over 1 million, as of the date this was written- 3-17-2015, the First Four Most Expensive Homes in the Greater Dayton Area can be found in the suburbs. Most were built after 1990, most are about 9000 sq ft, some are country club estates and one is a true country estate with multiple homes included.

Let’s start the list in Kettering with the oldest of our First Four. Built in 1928, this beautiful 9000 sq ft, 6 bed vintage home will only set you back 1.14 million.

Next up is the newest of the list. This impressive Mediterranean style home with 9,216 sq ft and 5 bedrooms is in Beavercreek’s Country Club of the North.

At 1.3 million, Bellbrook offers an 8,500 square foot Colonial style home with 6 bedrooms and 8 baths, a pool, and a pond among the many amenities.

Meanwhile, back in Kettering, Number 1 on our list is also the biggest of the First Four Most Expensive Homes has 9,449 square feet,
4 bedrooms, 8 baths, and expansive vertical windows with lovely views.

I know there are plenty of real estate porn addicts out there. Whether you like looking at dream homes, or are seriously looking for a place you can call your own,
you can search all homes currently for sale directly from the Dayton Area Board of Realtors website here.

University Row and the Salem Avenue Festival of Neighborhoods

September 20, 2014 By Teri Lussier

Some neighborhoods everyone knows, and some are less familiar, but very important to the history of Dayton. As a Realtor, for better or worse, we are limited to the kind of information we can give our clients about what it’s like to live in a neighborhood. The reasons for this are simple- for one thing, we might not have any real experience living in a neighborhood so our information comes second hand- not always the best source. Plus what we might think of as either unacceptable or perfect in a neighborhood, might be completely different from what you are looking for so if you can talk to the neighbors themselves, that’s the best way to get the skinny on whether a neighborhood meets your needs. Today is your chance to visit a beautiful historic neighborhood and mingle with the residents of several local neighborhoods to find out first hand what they are all about. It all happens at the corner of Harvard Blvd and Salem Ave, in University Row.

Today is the 3rd Annual Salem Avenue Festival of Neighborhoods. Nine neighborhoods along the Salem Corridor are joining together to celebrate their past, present, and future with food, music, and tours including a tour of the historic Grace Church and a walking tour of University Row.

A little real estate information- University Row is a neighborhood loosely bordered by Salem, Cornell, Catalpa, and Yale- you can see the map here. The homes are large, grand, majestic, unique. The have amenities and construction materials that you rarely find in homes built today- butler’s pantries, Juliette balconies, grand foyers, built-in cabinetry, marble floors, and details, charm, and character. Stats for the last year- Sept. 2013 – Sept. 2014, show the average Fair Market Value home (not a foreclosure) in this neighborhood will sell for about $105,000, has 2,771 square feet, and 4 bedrooms/ 3 baths. That’s a big home. If you are looking for distressed or foreclosed homes, the average price is $26,286 with 1803 square feet and 3 beds/ 2 baths- still a lot of home.

University Row has a park, tree-lined boulevards, and what is often unusual in neighborhoods is that many of the homes sit back away from the road, giving them a more majestic appearance, and offering some privacy.

The walking tour of University Row is today, September 20, 2014 at 2:00 p.m. The complete schedule of activities:

• 2:00 and 2:30pm – Art Show & tours of historic Grace Church
• 2:00pm – Walking tour of the University Row neighborhood guided by Merry Masterson of Dayton History!
• 3:00-6:00pm – Food, Music & Mingling, all free! Grace Church volunteers will be grilling hamburgers & hotdogs; sides & beverages will also be provided. Enjoy smooth jazz by DERON BELL & Friends!
• Vendor booths featuring crafts, jewelry, etc., info tables, doorprizes & more!

And you can find out more details about the 3rd Annual Salem Avenue Festival of Neighborhoods on the University Row Neighborhood Association Facebook page.

As always, if you would like to see any home in the University Row area, contact your friendly neighborhood Realtor. Any Realtor can show you any home listed for sale, so don’t hesitate to ask!

Rubicon Square & the Fairgrounds Neighborhood

September 3, 2014 By Teri Lussier

Condo developments are popping up in Dayton, I’m sure you’ve noticed the newer Patterson Square and McCormick condos, as well as the Sixth St Lofts, but there is another condo development that you might not know about, in fact, you might not know this neighborhood even exits, at least as a neighborhood with a name and a development plan. I’m talking about Rubicon Square condos.

Rubicon Square is in the Fairgrounds Neighborhood, which is located just south of Miami Valley Hospital and west of Brown St. Its borders are Wyoming, Main, Stewart, and Brown streets, and it’s a fascinating mix of older and newer, more contemporary homes. A home in Fair Market condition can sell for $117,000- $145,000. It’s tucked in behind the newer Brown St development, so in addition to being a charming neighborhood on its own, you are in a very walkable neighborhood, that is beginning to see quite a bit of renewal.

Rubicon Square broke ground in 2013. This is a Charles Simms Development. If you’ve been in the Patterson Square condos, you will recognize the three-story floor plans, but you might not realize these are the same popular townhouses from the exterior because Rubicon Square condos reflect the quiet, tree-lined residential Fairgrounds Neighborhood. They have siding, gables with trim, and covered front doors. Inside, the townhouses reflect the modern style and floor plans that urban Dayton home owners are looking for- large windows that let in natural light, easy-care surfaces, and multi-use rooms, along with a second floor rear balcony for expanded living space.

This is a Planned Unit Development (PUD) so financing a condo in Rubicon Square is going to be easier than other condo developments and are eligible for FHA loans. In addition, employees at Miami Valley Hospital may be eligible for a homestead assistance grant that helps with down payment and closing costs. MVH employees can learn more about a special down payment assistance program offered through the hospital by contacting Coretta Tengesdahl in the Human Resources Dept. HOA fees are $40.00/ month and cover snow removal, building maintenance, and the common landscaping.

As of writing this post, Simms Development told me they have 4 unfinished homes available, 1 “market” home available with about $8000.00 in upgrades, and the model home is still available in Rubicon Square. Financing is done through Union Savings, for details call lender Anne Walters at 937-291-2591.

If you would like to take a look at Rubicon Square condos, or any home for sale in the Fairgrounds Neighborhood, talk to your Realtor, or I would be happy to set up a showing for you- my contact information is below. In addition, the 1 bedroom Brickstone model at Patterson Square is going to be open to the public during Urban Nights on Sept 12, Sharon Hansford told me that they’ve had zero turnover on the “maintenance free” townhouses in Patterson Square in the 3 years they’ve been built. A testament to how livable and desirable these homes and the downtown location is.

Historic South Park Neighborhood Open House

November 1, 2013 By Teri Lussier Leave a Comment

Living in a historic district is not like living anywhere else, and living in Historic South Park is no exception. This community is active, vibrant, neighborly, and very community-oriented. Curious to know more? This Sunday, November 3, 2013, from 2-4 p.m., Historic South Park is hosting a Neighborhood Open House.

Ten different homes are going to be open to visitors, all of them are currently listed for sale. A wide variety of homes will be represented during this event, everything from small, affordable bungalows, to large showcase homes and everything in between.

But it’s not all Realtors. There will be South Park neighbors co-hosting at a few of the Open Houses to give you an opportunity to speak directly and candidly with folks who live in the neighborhood. Those are the people who can talk at length about all the activities, groups, support available in the South Park neighborhood, as well as the pros and cons of living in, and caring for, these special historic homes.

Ghostlight Coffee is where your tour begins- stop in for maps, flyers, printouts, and of course, some awesome coffee, and then spend the afternoon in this lovely community. It’s Historic Real Estate Porn for you addicts, and some serious home shopping for anyone looking to buy a home.

The list of homes on the tour, and the listing agents and brokerages (maps and details are available at Ghostlight Coffee, 1201 Wayne Ave):

217 Perrine – Michael Royce, Royce & Associates – Listing Link
3 Bradford – Kamela Kordick, Kamela & Co – Listing Link
604 Oak – Kamela Kordick, Kamela & Co – Listing Link
219 Adams – Sean Clark, The Home Group – Listing Link
14 Johnson- Sean Clark, The Home Group
15 Johnson-Private Seller
28 Bonner-Private Owner
208 Bonner- Holly DiFlora, The Home Group – Listing Link
121 James- Holly DiFlora, The Home Group – Listing Link
559 Wyoming- Holly DiFlora, The Home Group – Listing Link

This event is free and open to the public, so please, come out and enjoy the dynamic and picturesque neighborhood that is Historic South Park!

11-2-2013, Update:
Be sure to stop by Blommel Park while you’re in the neighborhood. From 2-4pm the South Park social committee will be grilling up hot dogs and will be available to answer any questions you might have about the neighborhood.

Featured Real Estate: Cooper Lofts #409

February 11, 2013 By Teri Lussier Leave a Comment

Unique. One-0f-a-kind. Eclectic. Urban. If cookie-cutter spaces in the ‘burbs are not for you, you have two options in the city of Dayton- buy a historic home, or buy a condo at Cooper Lofts. And there are loft spaces and there are loft spaces, but this is true loft living and that is very hard to find in Dayton. From the gleaming Oak floors, to the warm muted colors, open floor plan, exposed duct work and structural elements, huge windows and great views, Cooper Lofts #409 is unique even among unique spaces.

The first floor is open space with living room, dining room, and kitchen area. The kitchen is modern and clean, open but still warm and intimate, and has been updated with gleaming black granite counter tops. The counter tops, sink, and cook top are two years old. The east-facing window/wall lets in natural light and from the 4th floor vantage point, you can watch the sunrise or the city lights from the island. Those rich light Oak floors are carried throughout the lower level, blending the entire space together, while the pillars and ceiling detail create specific living areas. A remarkable space for entertaining guests or clients. Very hard to find in the city of Dayton, this is a true loft bedroom! Open to the first floor, and yet, not exposed, this loft space is where dreams are made. The vaulted ceiling and wall of windows keep this bedroom exciting and fun. Previous owner used this as an office and, like a true city-dweller, used the Murphy bed on the first level for sleeping. Even in this space, you have some flexibility with how you use it. The current owner uses the loft as both bedroom and office, and added original artwork by local Dayton artist Stephanie Williams to make the already eclectic space even more interesting. A large walk-through closet leads to the master bath.

Looking for details? www.CooperLofts409.com with give you a complete photo tour, then call Theresa Lussier, Realty Central, 937.343.1411.

Dayton Home Sales Stats for June 2012

August 5, 2012 By Teri Lussier Leave a Comment

Dayton Home Sales Stats for June 2012 - Click Image to Enlarge

Every month the Dayton Area Board of Realtors (DABR) crunches through the sales data for the previous month and publishes the stats. They compare monthly sales to the year prior. It’s a nice way to gauge the general and overall real estate health of the Greater Dayton area.

These sales are single-family homes and condominiums reported by the Dayton Area Board of Realtors, in areas that could include everything from the Indiana border to Springfield; Celina to Hamilton, so it’s a very broad picture, so as I say with nearly every post, your community and your neighborhood might tell a very different picture- talk to a real estate agent to find the data that will directly affect your home. Commercial buildings or homes sold outside the Multiple Listing Service are not included.

So how did we do in June?

Brisk sales throughout the first six months of this year produced year-to-date across-the-board improvements over 2011. From January through June, 5,412 transactions were completed, compared to 5,014 during the same period in 2011, an increase of nearly 8%.

That’s sales. What about price?

This activity generated over $647.4 million in total sales volume for the first six months, a very strong 15.8% increase over 2011. The average sale price jumped to $119,657 while the median rose to $98,500, increases of 7.3% and 10.6%, respectively, in a year-over- year comparison.

The DABR website has other charts and graphs as well to help you make sense of what is happening in the Greater Dayton Area. Take a look!

Earnest Money: Quick tips and good faith deposits in Dayton

August 1, 2012 By Teri Lussier Leave a Comment

The Ohio Association of Realtors just produced a video regarding the legal implications of earnest money as it can be one of the most confusing aspects of a real estate transaction, and the video release is timely because I’ve seen a definite shift in seller thinking about earnest money so I thought this would be a good topic to discuss in some general terms. What is “earnest money”, what does it do, and how is it disbursed?

Please note: I’m a Realtor, I am not an attorney and I don’t play one on TV. What is included here is intended as very basic, general real estate information so if you need legal advice, please consult your attorney.

Also note: Real estate is local. If you are reading this from outside the Dayton area, please get specific advice from a local real estate agent.

In Dayton it’s called “Earnest Money Deposit” in other areas it might be called a “Good Faith Deposit” but regardless, the purpose remains the same- to let a seller know that your offer is serious and prevent a buyer from simply walking away from a home because of cold feet or a change of heart without losing something of value. An Earnest Money Deposit (EMD) is an amount of cash that a buyer offers up, to be delivered upon acceptance of an offer. But it’s not given to the seller, it is held in a non-interest bearing escrow account, and is not co-mingled with a broker’s operating funds. Here’s how the EMD is explained in the Dayton Area Board of Realtors (DABR) Purchase Contract:

EARNEST MONEY; DEFAULT. Upon presentation of this offer, Purchaser has delivered to _____ Broker, the sum of $_______ as earnest money, to be (1) deposited in the Broker’s trust account promptly after acceptance of this offer or (2) returned to Purchaser upon request if this offer is not accepted. The earnest money shall be paid to Purchaser or applied on the purchase price at closing. If the closing does not occur because of Seller’s default or because any condition of this Contract is not satisfied or waived, Purchaser shall be entitled to the earnest money. If Purchaser defaults, Seller shall be entitled to the earnest money.

Sellers need to understand that the money is not a deposit for them. It does not go to them at closing, it is not theirs. Buyers need to understand that they can get that money back at closing if the terms of the contract are met. Both parties need to understand that they both have to agree on how the funds are disbursed. More from the DABR Purchase Contract:

The parties acknowledge, however, that the Broker will not make a determination as to which party is entitled to the earnest money. Instead, the Broker shall not release the earnest money from the trust account until one of the following occurs: (1) the transaction closes and the Broker disburses the earnest money to the closing or escrow agent or otherwise disburses money pursuant to the terms of this Contract; (2) the parties provide the Broker with written instructions that both parties have signed that specify how the Broker is to disburse the earnest money; (3) the Broker receives a copy of a final court order that specifies to whom the earnest money is to be awarded; or (4) the funds become unclaimed and the Broker turns them over to the Division of Unclaimed Funds. In the event of a dispute between Seller and Purchaser regarding the disbursement of the earnest money, the Broker is required by Ohio law to maintain such funds in its trust account until the Broker receives (A) written instructions signed by the parties specifying how the earnest money is to be disbursed or (B) a final court order that specifies to whom the earnest money is to be awarded. If within two years from the date the earnest money is deposited in the Broker’s trust account, the parties have not provided the Broker with such signed instructions or written notice that legal action to resolve the dispute has been filed, the Broker shall return the earnest money to Purchaser with no further notice to Seller. Payment or refund of the earnest money shall not prejudice the rights of the Broker(s) or the non-defaulting party in an action for damages or specific performance against the defaulting party.

So, once an offer is accepted, try thinking of the EMD as belonging to both the buyer and the seller and they both have to agree on what happens to that money. As the contract states, if “(1) the transaction closes … the Broker disburses the earnest money to the closing or escrow agent or otherwise disburses money pursuant to the terms of this Contract”. We always defer- we have to do what the contract states, so if the there is a successful closing, the money is disbursed at the closing table, typically to the buyer, or if there are other instructions as to how that is disbursed, then we follow those terms. But what if it doesn’t close? We still follow the contract:

(2) the parties provide the Broker with written instructions that both parties have signed that specify how the Broker is to disburse the earnest money;

There is a specific form that will attach to the contract and gives the broker specific written instructions, agreed upon by both parties. Sometimes the money is just given back to the buyer and everyone moves on, sometimes the two parties split the money and move on, or the seller could end up with the money. It’s all negotiated and agreed-to in writing, or the broker is not allowed to release the funds. But what if the buyer and seller cannot agree to how EMD should be released? Again, we defer to the contract:

(3) the Broker receives a copy of a final court order that specifies to whom the earnest money is to be awarded;

If the parties cannot agree, one of the parties has the right to take the issue to small claims court and a judge decides how it disbursed. But even that doesn’t always happen, so then our contract says:

or (4) the funds become unclaimed and the Broker turns them over to the Division of Unclaimed Funds. In the event of a dispute between Seller and Purchaser regarding the disbursement of the earnest money, the Broker is required by Ohio law to maintain such funds in its trust account until the Broker receives (A) written instructions signed by the parties specifying how the earnest money is to be disbursed or (B) a final court order that specifies to whom the earnest money is to be awarded. If within two years from the date the earnest money is deposited in the Broker’s trust account, the parties have not provided the Broker with such signed instructions or written notice that legal action to resolve the dispute has been filed, the Broker shall return the earnest money to Purchaser with no further notice to Seller. Payment or refund of the earnest money shall not prejudice the rights of the Broker(s) or the non-defaulting party in an action for damages or specific performance against the defaulting party.

The contract is very specific about EMD and it’s imperative that everyone understands how they could be impacted by an earnest money deposit.

How much money should a buyer put down? Everything is negotiable and EMD is no different. Personally, I think the minimum they can get away with and still let the seller know they are serious is best, as a buyer you certainly don’t want to tie up your money unnecessarily as we just discussed it can be a point of negotiation and possible contention. So what’s typical? Well, foreclosures almost always ask for $1000.00, but sometimes a seller will take as low as $250.00 or $500.00 on lower priced properties. It varies from property to property and transaction to transaction, but figure between 5 and 10%. Also, while it is typical for an EMD to be a personal check, and it is customary for the buyer’s broker to hold the EMD, some sellers will want to have the EMD be a certified check and they will ask for their broker to hold the EMD, but remember, how the EMD is handled is determined by the contract, so neither broker can make an independent decision on how or when to release the earnest money.

While we see signs that the market is improving, we are a long way from the days where a seller would simply release the EMD because they knew another buyer was right around the corner. Earnest money is an increasingly critical negotiating tool, and in 2009 the Dayton Area Board of Realtors Purchase Contract changed to provide the detailed instructions you see above, so don’t be surprised if a seller asks for a large EMD to make sure a buyer is serious, or does not agree to Release of Escrow without a fight. Each transaction and each offer will hold some unique circumstances so please ask your real estate agent or lawyer as many questions you need to feel comfortable with the earnest money.

Looking for some insider baseball? To get the nitty gritty on some legal issues regarding earnest money, check out the Ohio Association of REALTORS Attorneys Peg Ritenour and Lorie Garland as they talk to REALTORS about how to deal with earnest money accounts with regard to Ohio laws.