First time buyers could buy this 4 bedroom, 2.5 bath home in Old Towne East for around $250K

This afternoon President Obama signed the bill into law that will extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30.

I’m surprised that they left the two month window but I think it’s very smart. Still, even if it were this week, I would not try to buy a short sale property or a foreclosure that doesn’t have the deed in the bank’s name even with the 7.5 month leeway.

Here’s the best part–a tax credit for SELLERS. The bill creates a $6,500 credit for those who buy a home after living in their current house at least five years. That will apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.

The credit will be available only for the purchase of principal residences priced at $800,000 or less.

This is huge. If you have owned your Columbus area home for at least five years–and I believe you must have lived in the home for at least five of the last eight years–you too can receive a credit. I can’t envision a scenario where you could claim both sides of the tax credits unless it was something along the lines of you selling your home and then turning around and buying the next home in your new spouse or girl/boyfriend’s name who has not owned a home.

The bill will raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

This is important. It opens the tax credit up to a whole new set of first time buyers who were not previously eligible and who could, conceivably, purchase a home with a little higher price tag that this year’s crop of first time home buyers weren’t even looking at.

I’ve always been a fan of City Center.  Everything everyone has ever pointed out about its faults, chiefly that it should have opened up to the streets surrounding it, has been true but it held a special place in the downtown retail fabric. I’m a buy-local guy and not a fan of big box retailers, malls or shopping itself but City Center was always close and always convenient. Parking was cheap and easy and chances are if our family had some kind of a retail need, we could fill it at City Center.

With the Annex in River South Condos literally just down the street finishing construction and Neighborhood Launch a stones throw away, will downtown Columbus condo buyers continue to consider living in the Center City now that City Center is gone?

Yes, they will. While the city of Columbus is touting a park to spring up from the ashes of the demolished mall, that is not the long term answer anyone wants to see in that prime spot. The City is talking to developers right now who are willing to put down their own money to build on the location. I’ve heard rumors of more condos, more apartments, major grocery, convenience and other retail stores in conjunction with class A office space.  It’ll happen.  Will we ever see another Macy’s type store downtown? Probably not. But maybe we could see some other fantastic possibilities.

Of possible interest from this and other sites regarding downtown retail and living…..

• Downtown Columbus’ Neighborhood Launch – a quick update

• Top 10 Chains We Wouldn’t Mind Seeing Downtown

• The Past, Present and Future of Retail in Columbus

• Population increase hasn’t translated into retail growth

I've always loved the stone pillars flanking this Bexley Home

Instant Equity. Two words anyone buying real estate in Clintonville, Bexley, Grandview, Downtown, Short North, Berwick, Westgate or anywhere else in Central Ohio love to hear.

The problem is, I’ve heard those two words too often lately. The problem is the context and the definition of instant equity.  In my opinion, anyone buying a home that has instant equity is anyone buying a home at a substantial discount to the Market Value of the  home. That range from selling price to market value equals instant equity (though the bank might not think so).

What I’ve heard a lot lately is something along these lines, “…and this Seller paid $338,500 for it just a few years ago and is selling it for only $299,900. That’s a lot of instant equity for your buyer!”

Hold on a minute Buster, who cares what the Seller paid for it! In today’s market, if the home the Seller paid $338,500 for in 2006 is only worth $290,000 then there is NO instant equity. It’s simply priced at or around market value. Market value simply means whatever the market (all you buyers out there in Columbus thinking of buying a home) is willing to pay for it.

Hold on though, because it works both ways…..I always tell Buyers that what the  Seller paid for the home has no bearing on what the home is worth.  That means if the Seller bought the Columbus home via foreclosure, at auction or even on the market with Instant Equity….ie-if the Seller got a deal…you can’t punish them when buying the house. They are the one who got the deal, they deserve to make a profit and the Buyer should anticipate paying market value for the home. Just because the Seller got a deal on the home doesn’t mean she has any obligation to pass that deal on to the Buyer.

Wait a minute. All I have to do is pick a house and HUD will give me an $8,000 down payment?

Although nobody called me for the panel of distinguished guests at the mid-year meeting of the National Association of Realtors today in Washington D.C., I have found out that Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, decreed today that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.

Secretary Donovan went on to say, “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,”  According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Is this great for Columbus area first time home buyers? You bet! You can read more about it here.

On the flip side, It seems to me that this is typical of the American ‘gotta-have-it-now’ mindset and all too reminiscent of the sort of ‘lend to anyone with a home buying twinkle in their eye’ mentality that got us into this mess.  Don’t have enough money for a down payment? No problem, here’s $8,000.

And, since you’re wondering anyway, that means that you could purchase about a $228,000 Columbus area home with no out of pocket down payment if you’re going with an FHA loan product and their 3.5% minimum down.

All BUT 3 of the 2 bedroom Townhomes are sold in the middle section on Gay street with the park and fountain setting in the courtyard.

4 Townhomes and 1 flat are ALREADY sold on the contemporary condos facing 5th Street.

In a time when nothing else seems to be selling, Neighborhood Launch isn’t doing too bad. It’s tough to keep track of because I tend to follow units via the MLS and not Builder Sites but I really love this project.
If not for Would-Be buyers who can’t sell their suburban homes, probably 10 more would have been sold by now.

Let’s face it, Jeff Edwards is literally launching a neighborhood in Downtown Columbus. I, for one, applaud this project. Interested? Call me to go take a look.

Yesterday I parked over at the new Ball Park and walked around it. I love it. I  am baseball fan and an Indians fan and the idea that this new Park is about 2 miles from my house makes very excited. I have tickets to the second game in the new stadium, a Sunday Afternoon game for our whole family.

But will it increase the value of surrounding homes in the Arena District, the Short North, Downtown and near Downtown neighborhoods? I believe it will help homes in the immediate vicinity retain their already solid value and become a calling card for homes like mine that can tout a “twelve minute bike ride to Huntington Park”.  They aren’t making any more land near the Arena District, as they saying goes, so homes within a couple miles, ie walking distance for the not-too-lazy, should see at least a continued extra added value that may sway a home buyer to their home.

If you live at Buggyworks or the North Bank or Burnham Square, life outside your front door just got a lot more active – and congestion filled 365 days of the year with Hockey and Baseball schedules.  Of course you walk to most of what you need and the lots aroud Nationwide Arena tend to empty out relatively smoothly.

Here is a quick re-cap on the Stimulus Plan and how it relates to Central Ohio home buyers in comparison to last Summer’s Plan:

Here is the link to the form used to dispute your Franklin County Taxes -property-value-dispute-form

And here are some of the highlights from the Instructions. If you live outside of Franklin County, look for the corresponding form on your Tax Auditor’s site.

FILING DEADLINE: A COMPLAINT FOR THE CURRENT TAX YEAR MUST BE RECEIVED BY THE COUNTY AUDITOR ON OR BEFORE MARCH 31 OF THE FOLLOWING TAX YEAR. A COUNTER-COMPLAINT MUST BE FILED WITHIN 30 DAYS AFTER RECEIPT OF NOTICE FROM THE AUDITOR THAT AN ORIGINAL COMPLAINT HAS BEEN FILED.
WHO MAY FILE: Any person owning taxable real property in the county, the board of county commissioners, the county prosecutor, the county treasurer, the board of township trustees of any township with territory in the county, the board of education of any school district with territory in the county, or the mayor or legislative authority of any municipal corporation with territory in the county may file a valuation complaint.
TENDER PAY: If the owner of a property files a complaint against the valuation of that property, then, while such complaint is pending, the owner is entitled to tender to the county treasurer an amount of taxes based on the valuation claimed for such property in the complaint.
NOTE: If the amount tendered is less than the amount finally determined, interest will be charged on the difference. In addition, if the amount finally determined equals or exceeds the amount originally billed, a penalty will be charged on the difference between the amount tendered and the final amount.
MULTIPLE PARCELS: Only parcels that (1) are in the same taxing district and (2) have identical ownership may be included in one complaint. Otherwise, separate complaints must be used. However, for ease of administration, parcels that (1) are in the same taxing district, (2) have identical ownership, and (3) form a single economic unit should be included in one complaint. The increase or decrease in valuation may be separately stated for each parcel or listed as an aggregate sum for the economic unit. If more than three parcels are included in one complaint, use additional sheets of paper.
GENERAL INSTRUCTIONS: Valuation complaints must relate to the total value of both land and buildings. The Board of Revision may increase or decrease the total value of any parcel included in a complaint. The Board will notify all parties not less than ten days prior to the hearing of the time and place the complaint will be heard. The complainant should submit any documents supporting the claimed valuation to the Board prior to the hearing. The Board may also require the complainant and/or owner to provide the Board additional information with the complaint and may request additional information at the hearing, including purchase and lease agreements, closing statements, appraisal
reports, construction costs, rent rolls, and detailed income and expense statements for the property.

"In an urban setting, it's important to establish your street grid and establish your public spaces." - Georgetown Vice Chairman Edgar Lampert

Ding, Dong, the Mall is dead. So sang the Lollipop Guild Powers-That-Be from the Mayor’s Office to Capitol South Urban Redevelopment Corp. this afternoon. After years of full scale retail exodus, a not-too-hostile takeover by the City and an enormous amount of speculation, City Center isn’t getting a Target, a Grocery Store or becoming a Casino. City Center will be demolished to make room for a city park, Columbus Commons.

Eventually that park will see residential, office and retail around the edges as the market dictates. 

I’m mixed on the news which has been all  over the place today. It’s been a long time since the mall had any relevance to my life — probably not since Macy’s took off.  Though not much of a shopper, I miss what City Center used to be and I miss what it stood for — bustling commerce in the core of the City.  I want that back. In the red brick district, in the Gay Street corridor for sure but also all over downtown from the warehouse district to the Market Exchange District to the Arena District.

The uncertainty regarding the future of City Center was never good for Selling Condos in Downtown Columbus but it never really was too big a part of that equation. Its demise and subsequent greening with the carrot-on-a-stick called condos/retail/offices around it’s edges won’t be a difference maker for years to come in the sale of Downtown condos.

Just yesterday my wife and I were talking about how much it must cost to heat the mall and insure water isn’t intruding. We wondered why it wasn’t just shut and boarded. Was it simply to keep the walk-through open to the Ohio Theater from the underground parking?

This whole Urban Renewal thing is sooo slow. When the park exists, if it’s done nicely and the whole River South theme blends beautifully and effortlessly together with Columbus Commons, then it will make a difference.  The end of indecision regarding the future of the site, however, can’t hurt.

related:  Goodbye Macy’s, Hello . . .         Macy’s to Pull out of Downtown Columbus’ City Center