Building Green

Prospects always ask Builders WHY aren't "green" features standard? Depending on how "green" you want a new home, it can add well over 5% to the cost. What could you get for that same 5%? Probably granite countertops, hardwood floors in your kitchen, nook and foyer and a home theatre system. The beauty of building a home is that YOU get to make these and ALL the other important decisions!!! Colors, finishes, design, etc.

Downpayment - Sweat Equity

Yes, it is still around!!! With all the Nehemiah-type no downpayment programs, we all forgot about the easy way for home buyers with no money to get their downpayment. The old fashioned way. Work and sweat!!!! Painting, cleaning, planting, etc. If you don't know how - ask your builder - they will help you learn the skills that can be used for a lifetime.

OHFA Will Lend for $8,000 Tax Credit for Downpayment

Ohio Housing Finance Authority has a variety of downpayment assistance programs, including:

1. Using first-time homeowner tax credit as a downpayment
2. Grants for downpayments

http://www.ohiohome.org/homebuyer/downpayment.aspx

Beware Builders Offering "Financing"

If something seems too good to be true - it probably is!!! Interest rates at "below market rates" by homebuilders but ONLY if you use "their" lender. HUD sure doesn't like these sweetheart deals.... A homebuyer should be free to choose their own lender. The internet has levelled the playing field for lenders. A buyer can shop rates and loan fee packages. ALWAYS make sure you are comparing apples to apples. Lenders can call their fees anything they want - Origination, Discount, Processing, Underwriting, Document Preparation, etc. Doesn't matter to the Buyer - just find out what the total fees are for a loan at a certain rate and then compare.

New Home Prices Have Hit Bottom

How did we get here? The two big homebuilders in Central Ohio rushed to secure land to continue their growth. At one time, one of them, had around 20,000 lots or "blanks" (a blank is an undeveloped lot). That was 8-10 years of inventory at their highest production years ever. They pursued more and more land and pushed prices much higher than the market could really handle. So lots in the "sprinkler" communities that are one ring out from the suburbs - Johnstown, Delaware, Commercial Point, Lancaster, etc. - were actually priced higher than lots were 5 years ago in the prime suburbs. Land and lot prices have returned to true market value - maybe even lower!!! Materials and labor have decreased to unsubstainable lows. Increases are right around the corner. Builders have slashed margins to razor thin amounts to move inventory. This is a great time to build a home!!!!