WASHINGTON (September 18, 2007) Today is a good day for
housing, noted the National Association of Realtors. On the same
day that the Federal Reserve cut the discount rate by half a
percentage point, the U.S. House of Representatives has passed
the Expanding American Homeownership Act of 2007, H.R. 1852.

      The legislation will offer home buyers a safer alternative
to risky mortgage products and help many homeowners who may be
facing foreclosure, and the combination of efforts could have a
positive impact on the housing market and consumer confidence.

      "NAR appreciates the efforts of House Financial Services
Committee Chairman Barney Frank, D-Mass., and Rep. Maxine
Waters, D-Calif., for their leadership in protecting the
interests of America's homeowners and those who strive to own
their own home", said NAR President Pat V. Combs, of Grand
Rapids, Mich., and vice president of Coldwell
Banker-AJS-Schmidt.

      "While some homeowners are faced with mortgage payments
they can no longer afford as their adjustable subprime loans
reset, a reformed FHA is positioned to offer borrowers a safer
mortgage alternative and help bring stability to local markets
and local economies."

       "As the leading advocate for expanding homeownership
opportunities, NAR has long supported FHA modernization
legislation that increases loan limits, eliminates the statutory
3 percent minimum cash down payment, and gives FHA the
flexibility to provide risk-based pricing. NAR also supports the
continued availability of FHA loss mitigation programs," said
Combs. "We are pleased that this bill contains all of these
important enhancements."

      FHA's loss mitigation program includes mortgage
modifications, allowing borrowers to change the terms of their
mortgage so that they can afford to stay in their home. The
program also offers "partial claim" programs in which FHA lends
the borrower money to cure the loan default. This no-interest
loan is not due until the property is sold or paid off.

      "FHA can once again be a leader in providing safe loan
products and preventing foreclosures by authorizing lenders to
help borrowers who are in default. This will make a substantial
difference for many families who may otherwise face
foreclosure," Combs said.

      Eliminating the 3 percent minimum down payment will help
many buyers into homes, as will increasing FHA-insured mortgage
loan limits, which will help first-time home buyers, minority
buyers and others who cannot qualify for conventional mortgages.
People who live in high-cost areas will benefit as well, since
low limits currently preclude many of these buyers from using
FHA-insured mortgages.

      "NAR believes that the amendment offered by Chairman
Frank, and Reps. Gary Miller, R-Calif., and Dennis Cardoza,
D-Calif., truly represents a meaningful increase in loan limits,
which will help strengthen and secure the mortgage market and
make homeownership more attainable for many. We applaud their
effort", Combs said.

      "The universal and consistent availability of FHA loan
products has made mortgage insurance accessible to individuals
regardless of their race, ethnicity or social status during
periods of prosperity and economic depression, allowing higher
risk, yet creditworthy borrowers to get prime financing," Combs
said. "A strong and viable FHA is important to a robust and
vital housing market. The House took the right step today, and
we hope that the Senate will quickly follow suit."

      "Along with today's FHA legislation, we believe that the
Federal Reserve Board made the right move today in lowering the
interest rate,"said Combs. "Making borrowing more affordable
will make money more available, and this could go a long way in
helping turn around the sluggish housing market."

      The National Association of Realtors, "The Voice for Real
Estate," is America's largest trade association, representing
more than 1.3 million members involved in all aspects of the
residential and commercial real estate industries.

What is the difference between list and sales prices?
The list price is how much a house is advertised for and is usually only an estimate of what a seller would like to get for the property. The sales price is the amount a property actually sells for. It may be the same as the listing price, or higher or lower, depending on how accurately the property was originally priced and on market conditions. If you are a seller, you may need to adjust the listing price if there have been no offers within the first few months of the property's listing period.

What are the two most important factors when selling a home?
Price and condition are the two most important factors in selling a home, even in a down market. The first step is to price your home correctly. Use comparative sales information from your agent, or pay for a professional appraiser (usually $200 to $300), to objectively evaluate your home's worth. Second, go through the house and repair any obvious cosmetic defects that could deter a buyer. In a down market, you may have to consider lowering your price and/or making a major repair, such as replacing the roof, in order to lure a buyer. Also, make sure that your home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the local multiple listing service or online listings provider. If this isn't happening, take it up with your agent or agent's broker. If you are still not satisfied you are getting the service you need, you may have to switch agents.

What is the best time to buy?
Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are eager to buy so they can move during summer vacation, before the new school year begins. The market slows down in late summer before picking up again briefly in the fall. November and December have traditionally been slow months, although some astute buyers look for bargains during this period.

What is the difference between market value and appraised value?
The appraised value of a house is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300. Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.

What is the difference between list price, sales price and appraised value?
The list price is a seller's advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area. The sales price is the amount of money you as a buyer would pay for a property. The appraisal value is a certified appraiser's estimate of the worth of a property, and is based on comparable sales, the condition of the property and numerous other factors.

How does someone sell a slow mover?
Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home. If you are selling in a slow market, your first step would be to lower your price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired. Secondly, you need to make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage, and listings on the local multiple listing service (MLS) and on the Internet. Another option is to pull your house off the market and wait for the market to improve. Finally, if you who have no equity in the house, and are forced to sell because of a divorce or financial considerations, you could discuss a short sale or a deed-in-lieu-of- foreclosure with your lender. A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender. In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. The latter are radical options. Your simplest, and in many cases most effective, option is to lower the price.

How is the price set?
It's very important to price your home according to current market conditions. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood. A so-called comparative market analysis provides the background data upon which to base your list-price decision. When you prepare to sell and are interviewing agents, study each agent's comparable sales report (the data should be no more than three months old). If all agents agree on a price range for your home, go with the consensus. Watch out for an agent whose opinion of value is considerably higher than the others.

What are the standard ways of finding out how much a home is worth?
A comparative market analysis and an appraisal are the standard methods for determining a home's value. Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. Be sure you get listing prices of current homes on the market as well as those that have sold. You also can research this yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location. This information is not only available at your local recorder's or assessor's office but also through private companies and on the Internet. An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.

How do you prepare a house to sell?
Doing whatever you can to put your house's best face forward is very important if you want to get close to your asking price or sell as quickly as possible. Short of spending a lot of money, here are several ideas for making your home show better:
* Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.
* Clean the windows (both inside and out) and make sure the paint is not chipped or flaking. And speaking of paint, if your home was built before 1978, new federal law gives a buyer the right to request a lead inspection. If you think you might have some problems, do the inspection yourself beforehand and make any fixes you can.
* Be sure that the doorbell works.
* Clean and spruce up all rooms, furnishings, floors, walls and ceilings. It's especially important that the bathroom and kitchen are spotless.
* Organize closets.
* Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
* Make sure the house smells good: from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the kitty litter.
* Put vases of fresh flowers throughout the house.
* Having pleasant background music playing in the background also will help set your stage.

Where do I get information on housing market stats?
A real estate agent is a good source for finding out the status of the local housing market. So is your statewide association of Realtors, most of which are continuously compiling such statistics from local real estate boards. For overall housing statistics, U.S. Housing Markets regularly publishes quarterly reports on home building and home buying. Your local builders association probably gets this report. If not, the housing research firm is located in Canton, Mich.; call (800) 755-6269 for information; the firm also maintains an Internet site. Finally, check with the U.S. Bureau of the Census in Washington, D.C.; (301) 763-2422. The census bureau also maintains a site on the Internet. The Chicago Title company also has published a pamphlet, "Who's Buying Homes in America." Write Chicago Title and Trust Family of Title Insurers, 171 North Clark St., Chicago, IL 60601-3294.

Is a low offer a good idea?
While your low offer in a normal market might be rejected immediately, in a buyer's market a motivated seller will either accept or make a counteroffer. Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:
* Is the offer contingent upon anything, such as the sale of the buyer's current house? If so, a low offer, even at full price, may not be as attractive as an offer without that condition.
* Is the offer made on the house as is, or does the buyer want the seller to make some repairs or lower the price instead?
* Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.

Did your family go to Kings Island, The Newport Aquarium, or River Fest this summer?  This year, the Bowman family bought a one year membership to the Cincinnati Zoo.  We found this to be great value because the zoo is far more enjoyable in several short trips rather than trying to see it all in a very long day. We have been there three times since May, and the membership has more than paid for itself. 

If you have not been to the zoo lately, you will love the new Cheetah Run where you can see these amazing cats run at full speed.  It seems that there is always something new to see and do.  My favorite destination is the "Wings of the World" bird show; Johnathon likes the manatee exhibit. There is something for everyone.  For more information, go to: www.cincinnatizoo.org .

Did your family take in a Cincinnati area attraction that everyone enjoyed?  If so, we would like to know about it.  Please post your comments.

When Ohio lawmakers repealed stringent home sewage disposal rules that went into effect earlier this year, some local health districts opted to impose tougher standards. Such action has drawn the attention of the repeal's supporters, who have sent a letter notifying the health boards that some of their current undertakings are not in compliance with House Bill 119.

The letter, dated Aug. 6, 2007, is designed to explain the legislative intent behind the repeal.

"The claimed effect, as well as the intent, of the Ohio Legislature in adopting the household sewage language in HB 119 is to provide each local county health board with the exclusive authority to adopt rules governing household sewage systems for that county for the next two years," the letter signed by three Senators and two Representatives said.

The effort to repeal Ohio's new sewage system rules was applauded by the Ohio Association of REALTORS and home builders, among others. The repeal was contained in Ohio's biennial budget, signed by Gov. Ted Strickland in late June.

The new rules, House Bill 231 which went into effect on Jan. 1, 2007, were overreaching in their attempt to resolve problems with the state's septic systems, said Scott Williams, OAR's director of governmental affairs.

"Within a few months of the rules going into effect, they created undo hardship for many Ohioans," Williams said. "The move to repeal the Department of Health's rules and allow for the development of more balanced requirements was a prudent move to take a step back and develop rules that are fair, balanced and meaningful."

Supporters of the repeal collected hundreds of testimonials from property owners, REALTORS and builders citing the negative implications of the stringent rules, including exorbitant replacement costs and sales that fell apart because the cost to fix a system were in excess of the property's value.

Sen. Timothy Grendell (R-Chesterland), the lead sponsor of the repeal effort, stated that the legislature's decision to nix the program allowed for a "reasoned approach" to what is "a worthwhile goal." As part of the repeal, the legislature and stakeholders are directed to develop more amenable rules.

"While they're trying to figure out which way is north, Ohio homeowners (were forced) to pay exorbitant prices to fix their systems," Grendell stated. Homeowners in Geauga County previously paid $10,000 to $12,000 for septic systems, but the Jan. 1 rules required technology that cost upwards of $32,000 for a system.

Local and state health commissioners opposed the repeal, contending that the new standards were necessary from a public health perspective.

Beth Bickford, executive director of the Association of Ohio Health Commissioners, stated in testimony that "by repealing HB 231, you're asking all homeowners in Ohio, ‘Do you want to be exposed to sewage?'"

Gov. Strickland signed the repeal, believing that common ground can be found to appease all sides of the debate.

"(Gov. Strickland) believes there's a solution that would relieve the cost to homeowners and, at the same time, preserve the public health," said spokesman Keith Dailey.

The actions of some local health districts since the repeal prompted the recent letter by Grendell, Sens. Capri Cafaro and Stephen Buehrer, and Reps. Lynn Wachtmann and George Distel.

"It is important that we complete the work of revising the home sewage disposal rules so that the rule are clear, cost-effective, and protect public health and the environment--while not burdening individual homeowners with requirements for on-site disposal systems which are unnecessarily expensive," the lawmakers wrote. "It is our desire to expand the choice of on-site systems which become available to homeowners, so that each individual homeowner has a choice of systems which will be available to him/her at a reasonable cost."

Further, the letter cautions local health districts from imposing standards similar to those contained in the repealed HB 231.

"We would also suggest that local boards of health not adopt the recently invalidated Department of Health Rules as local rules, because those rules, in some respects, are not more stringent than currently effective rules. Adopting the recently revoked rules may also, in the future, create unnecessary conflicts with the recommendations of the newly created Study Commission."

OAR, along with other interested parties, will have representation on the aforementioned Study Commission, which is directed to produce recommendations in the near term. The newly developed rules will become effective in 2009.

"We commend Gov. Strickland and the General Assembly for their prudent approach to an important issue," said OAR President Pat O'Neil. "We're hopeful that the recent letter to local health boards will stem the imposition of a patchwork of regulations in Ohio's counties and allow for creation of a statewide standard that accomplishes all of our shared goals."

Learning The Lessons Of The Past

It 's often said, "What's Past is Prologue." In real estate, the past can indeed determine the future, when buyers choose to restore or preserve a historic property. "Opportunities abound for those wanting to purchase a historic home, but so do questions about the soundness of the investment," says Jason Bowman ABR, ePRO with RE/MAX Elite. 

Before making an investment in history, the Jason Bowman recommends that potential home buyers consider these questions:

• What regulations govern local historic buildings and districts?
• Does the house need extensive restoration?
• Are original or substitute materials available for repairs?
• Are craftsmen who are knowledgeable about historical materials and building systems available?
• How will the house be appraised?

Knowledge of any structural problem and the time and money needed to fix it should not only influence the decision of whether to buy, but also how much to offer. In some cases, the seller may be required to undertake some of the work as part of the purchase agreement.

Yet the advantages of owning a historic house often outweigh the work that goes into finding and securing one. There is a rewarding sense of history in the unique detailing and meticulous craftsmanship found in historic homes as well as the satisfaction of restoration. 

"There may also be financial benefits for a historic home owner," explains Bowman. "Those benefits range from reductions in property taxes and adjustments to assessed value, to state income tax credits and property tax freezes for qualified rehabilitation and restorations."

The National Trust for Historic Preservation reports that 37 states and the District of Columbia have laws that provide individuals with incentives for owning historic properties. 

Not every old home is historic. "A historic house is an example of the cultural or physical development of a community, state, or the nation due to its architecture or association with an important historical figure or event," Bowman says.

If a home does qualify as a historic property, then it may be listed individually or as part of a historic district. The listing of a building or district in the National Park Service's "National Register of Historic Places" provides public recognition of its importance, but will not interfere with an owner's right to alter, sell, or determine how an individual property may be used. 

"A local or state government housing preservation organization usually will assist owners who want to pursue a historic designation," Bowman says. However, even if the historic building meets the designation criteria, it will not be listed if the majority of property owners in a district object for whatever reason. In this case, the building is put on an "eligible" list should the objections be overcome in the future.

For more information on historical properties, contact the National Conference of State Historic Preservation Officers at 444 North Capitol Street, NW, Suite 342, Washington, DC 20001-1512. For a list of historic real estate specialists, contact the National Trust for Historic Preservation at 1785 Massachusetts Avenue, NW, Washington, DC. 20038. For a list of professional real estate buyer representatives, please contact the Real Estate BUYER'S AGENT Council, 430 N. Michigan Avenue, Chicago, Illinois 60611; phone (toll-free) 800-648-6224 or direct 312-329-8656. 

Jason J. Bowman is one of more than 40,000 members of the Real Estate BUYERS AGENT Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the ABR®, Accredited Buyer Representative, designation. As the world's largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is "The Voice for Buyer Representation," with more than 44,000 active real estate professional members of the organization throughout the world.