To further explain the details, the home was located in a community specific to this regional builder.  There had been numerous other sales in that community over the past 9 months, however, none of the sales were near the agreed purchase price of the property in question. The buyers had obtained financing from a large regional bank here in Cincinnati, and had been approved for a 20% down conventional style loan package offering an amazing interest rate with zero PMI. The buyer and seller had come to terms 6 months ago, and through the selection process the buyers added upwards of $13,000 to the original purchase price of $386,000. All parties were made aware and committed in writing of this price adjustment before construction was underway. During the construction period, a preliminary appraisal was ordered which is a common occurrence for a new construction home. The appraisal was done noting a sale price of $386,000 and months later the final appraisal was ordered noting  line items of upgrades the buyers selected at their selection meeting months before. The preliminary appraisal was submitted at a value of $386,000 then weeks prior to closing, what can be considered a final appraisal was ordered. To admit neglect, the appraiser did not receive the notice of final appraisal  weeks prior to closing.  The reason for this was explained to us as the appraiser had turned off his notifications from the 3rd party company working between the lender and appraiser. Upon notification that the final appraisal was needed the appraiser explained “there are zero comps to build a value of $398,465 within the area; it can’t be done.”  This opened the door of total chaos. The buyers were devastated and lost as to what to do.  Both the lender and builder’s representatives were shocked that a new construction home did not appraise for the agreed upon sales price. I was torn as well, having closed several new construction properties over the past 18 months and having no appraisal issues to note. In my experience, however, I knew the proper ways to approach such a scenario having dealt with this 3 times over the past year on resale properties.

My first stop was with the lender to immediately inquire about options, policy and procedures in handling this from the perspective of my client’s loan package. While those wheels were turning, conversations with comforting my clients began. They were on the exact other side of this scenario while selling their home this past spring. Realizing the stress people put on themselves during the process of building a home, my focus was still on their future:  keeping them focused on what a beautiful home they built and how amazing it will be the day they unlock the front door for the first time.  Then we had to discuss our approach.

During the discussion with my clients, I also started note sharing with the builder’s representatives, making certain the line of communication was wide open. My focus with the builder was simple, “We don’t care who is to blame here; we just want a solution.”  There were a few I thought of right away. The seller could provide comps in the community that could submitted to the appraiser for review with data to support the purchase terms. The builder was unable to provide this because there was none to provide. I did my homework, studied each home sale in comparison only to discover the subject property was the biggest and best the community had constructed and completed since early 2008. Supplying comps was out, so the other solution was to order a new appraisal, however, the lender killed that by noting the loan package didn’t allow for that option. So here we were looking at a home that appraised for $13,000 less than the sales price with seemingly nowhere to go.

My buyers had the funds to cover 20% of $398,465 as months of planning put them in that position.  However with a lower appraisal, it put the loan to value ratio at a different position, placing PMI back into the conversation. My clients were not able to swallow PMI; in fact they were against even furthering those discussions. So we were now looking at the $13,000 in upgrades my clients had selected to be installed in the home as being the difference and deal breaker in this closing.

Late in the night on Thursday–12 hours from closing–the builder’s representatives and I had at-length conversations, discussing positioning for solutions. The builder made me aware that several channels of people needed to review the on-hand documentation, appraisal and purchase contract included. I was told after over an hour of deliberation, that mid-morning on Friday would be the earliest time to continue our negotiations.

Mid-morning Friday, my negotiations with the builder started again. This time they took the stern position of “this is not our problem and we are not budging.”  I was really taken aback, by no means is this my client’s problem either.  I knew the appraisal was a direct opinion of the value of the home, the home the builder owned.  It was made known to me that the lender had discussed options to close the loan with the appraisal we had, and instructions on how was delivered to the builder. At this time, the builder knew the financial status of my clients, taking nearly every bit of leverage away.  The buyers just wanted to close with the loan package they had prepared for and sales price to which they had agreed.  That was not going to be the case.

Friday afternoon my negotiations hit a fevered pitch.  I was strong and precise at painting the picture to the builder.  “What are you going to do with this $13,000?”  My clients don’t have an extra $13,000 to bring to closing–which is exactly what the builder demanded. If they want the house, they must pay us what we agreed to. I went on to ask “what would you do if your buyer didn’t have the $13,000 to bring?”  This is the response I got, “we would send your buyers a default letter.  That letter would explain we would be keeping the $19,000 they put down in earnest money and then we would put house up for sale.” As unreal and unfair as that all sounds, that was exactly what they were going to do with the beautiful home my clients built IF the sale price of $398,465 was not provided in full.

My clients were devastated that the builder they chose was being so demanding with a situation my clients didn’t cause.  Offering no peace of mind, no security, no direction; rather, they would be setting demands, holding a defensive position, not taking any responsibility and pushing my clients to a very emotional state of mind.  Our lender in the process then raised a hand at being helpful, introducing a new loan package which required some upfront cost to remove PMI from the package which we were able to negotiate the builder to pay. The explanation of the loan package really made me wonder what really goes on behind the scenes at regional lending institutions.  It was described the numbers would work; the system would be blind to the missing $13,000 for the appraisal, all because my clients had 20% of the higher number to put down. Even with the lower than sales price appraisal, the down payment was somehow turned around sideways and then placed on paper to look like nothing had changed. Believe this story or not, that is exactly what happened, the loan was re-disclosed, GFE was generated and closing took place without manipulating the contract or loan package.

The fact that is still evident here is this,  my clients now know they built a home with a well-known builder in our region and came to terms on value when the opinion of fair market value is $13,000  less than what they actually paid for it. This asks the question, how healthy is new construction right now?  Are builders overbuilding?  Are buyers overspending?  Are appraisers overlooking?  And finally, are lenders overstepping the bounds that good faith lending has created?

My clients felt let down by their builder, bruised by the financial system, torn by the current events of the real estate world.  I recall my buyer asking me, “Do you deal with this everyday in your career?” and of course, “sometimes, some days, certain situations put me in a position to negotiate with or without leverage for my clients.”  I realize that moments like these are the reasons why I have become so good at helping people. My clients needed solutions, and the solutions I had in this case, the builder chose not to see them as acceptable.

 We worked smart to establish communication, deliver and draft solutions, and finally 3 business days later, my clients go the keys to their new home. I created positive thoughts to the final outcome, however the steps to get there are moments I don’t choose to give energy too. This circumstance only grew worse based on the techniques and delivery of the parties involved. We couldn’t control the circumstance, but you can control how you handle it!

Sidewalk planned for SR 32 in Anderson Twp.

By Lisa Wakeland • lwakeland@communitypress.com • September 24, 2010

Township trustees recently passed a resolution to work with the Ohio Department of Transportation to build the sidewalk in the right of way, which is owned by the state.

Paul Drury, director of the Planning and Zoning Department, said the sidewalk is in the preliminary stages and will be across from the Estates of Signal Hill subdivision.

The sidewalk will likely be on the business side of Ohio 32, near Speedway, and connect to the EME Fence Co. property and city of Cincinnati parking area.

Drury said the Estates of Signal Hill will eventually become a township street if accepted as a subdivision by Hamilton County.

Part of the requirement for new township streets, Drury said, is having sidewalks on both sides of the road and often the funds for sidewalks on individual lots are part of a homeowner’s association fee.

He added that in some circumstances funding usually used to construct sidewalks along individual lots can be put aside to build a sidewalk off-site – in this case, it’s on state Route 32.

Drury said there are plans to connect that sidewalk to the Little Miami Scenic Trail and place a crosswalk at the intersection of Estates of Signal Hill Lane and state Route 32.

Sidewalk planned for SR 32 in Anderson Twp. | cincinnati.com | CommunityPress.com

Incline Village will get a revitalization.

Copyright 2010 The E.W. Scripps Co. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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• By: Anthony Mirones

CINCINNATI – Developers along with the Price Hill community council have planned a development for a walking district called the "Incline District."

Pete Witte is a Price Hill resident and owns a local printing company along Glenway Avenue. He said that he is excited about the possible economic impact.

"This difficult development… business environment that we’re in, they were able to secure the financing and get the dollars needed to kick this project off when so many around town aren’t getting started."

The project calls for an old radio station building and a few houses at the corner of Eighth and Matson streets to be demolished to make room for new business like a restaurant, which would feature a beer garden overlooking the Cincinnati skyline, a 15-unit condominium, and a medical office building.

"Every business benefits when we have new higher income earners, that are people running businesses, moving to our community," he said.

The project was financed by the Center Bank of Milford, Ohio, and will be built by Woodward Construction Inc.

The "Incline District" is expected to bring new jobs when it opens in spring 2011.

Price Hill on an incline

Home » Seniors Housing » $10.35 Million HUD Loan Paves Way for Assisted Living Project in Missouri City, Texas

$10.35 Million HUD Loan Paves Way for Assisted Living Project in Missouri City, Texas

Aug 30, 2010 9:48 AM, By NREI Staff

Hampton Pointe Manor, Missouri City, Texas

 

Outer Marker Properties LLC is developing Hampton Pointe Manor, an assisted living and Alzheimer’s care facility in Missouri City, Texas. Upon completion, the 53,000 sq. ft. project will contain 77 units, with 54 units dedicated to assisted living and 23 units allocated to memory care. The two-story facility, which will feature high-end finishes and Class-A amenities, is scheduled to open in July 2011.

The development is a joint venture between Atlanta-based Outer Marker and Wallace Bajjali Development Partners LP. The project will be managed by the 410 Group, a sister company of Outer Marker Properties.

The development of Hampton Pointe Manor is partially financed through a $10.35 million loan provided by Houston-based Davis Penn Mortgage Co. The loan is insured by the Department of Housing and Urban Development’s Section 232 program, which has been overhauled during the past 18 months to expedite the loan application and approval process.

Section 232 insures mortgage loans to facilitate the construction and substantial rehabilitation of nursing homes, intermediate care facilities, and assisted-living facilities.

Hampton Pointe Manor is part of Hampton Pointe, a 17-acre, mixed-use “transitional living” community that will also contain active adult patio homes and an independent living facility. Future plans call for a skilled nursing facility and commercial space to be added.

The assisted living and Alzheimer’s care facility under development will be situated on 3.42 acres of the mixed-use development and will feature private dining facilities, an arts and crafts center, a special events venue, library, lounge, and a beauty salon and barber shop. The developers emphasize that they have preserved many of the trees on the site in order to create a tranquil outdoor environment for residents to enjoy.

The structure also will include an access-controlled memory-care wing, featuring a private courtyard and dedicated full-time staff.  Specialty services provided to residents will include transportation, a full-time concierge and activities coordinator, resort-quality food service, wellness programs, weekly linen, housekeeping and laundry service, and assistance as needed with activities of daily living.

$10.35 Million HUD Loan Paves Way for Assisted Living Project in Missouri City, Texas

Mariemont architectural proposal could cause red tape

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Copyright 2010 The E.W. Scripps Co. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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By: Anthony Mirones

MARIEMONT, Ohio – There is a distinct atmosphere resting in Mariemont that was designed for tranquility in the early 1900s.

"We moved to Mariemont, because of the excellent school district and this particular house because it’s close to the square," said resident Michael Benson.

His home is a two-story English Tudor along Center Street.

"[When] we put an addition on our house, we went through great lengths to match the house so that it looks like it was part of the original structure," he said.

Last year, across the street from Benson, a developer wanted to tear down an apartment building and build condominiums, which could have changed the scenic feel to the street. The village mayor did not care for the idea.

"We felt it wasn’t best for the village, because it would ruin the run of apartments," said Mayor Dan Policastro. "I then decided to put it into the ARB, Architecture Review Board."

The ARB recently handed over its way of handling the issue. The report advised to make the entire street an historic area. That would mean any owner of any building (single family or multi-residential) would have to come before the ARB and receive approval for any exterior renovations or alterations.

Benson dislikes that idea.

"We really think that the people that live here all have an understanding of this area and will take care of it without having any external governmental action forcing it on us."

Policastro agrees with the homeowners to a point.

"I only plan to put it in [committee before council] for the five apartments."

The mayor said that he would not introduce any measure to include single-family homes. It will not be submitted to committee until later this fall.

Mariemont architectural proposal could cause red tape

Thursday, August 19, 2010

Casino-area study will begin September 1

 

Bridging Broadway, the soon-to-be non-profit that hopes to insure that Cincinnati’s new casino fully integrates into the surrounding community, has announced that the first phase of its full district study will commence on September 1.
Funded by the City of Cincinnati, the six-month study will examine the economics, social issues, transportation, and urban design issues within an approximately half-mile radius around the 20-acre Broadway Commons site.

A series of community dialogues planned during the study will collect the goals and concerns of residents, businesses, and property owners throughout the immediate area. The study will result in a series of recommendations to the City in the areas of project design, policy, and programming.
Bridging Broadway staff and volunteers and the University of Cincinnati’s Community Design Center will oversee the study. The Local Initiatives Support Corporation of Greater Cincinnati and Northern Kentucky will serve as a partner, and a special task force assembled by the City will act as a steering committee.
Soon, public relations partner Strata-G Communications plans to launch a campaign to build community awareness and excitement, and Electronic Art is preparing a new Bridging Broadway website.
Bridging Broadway also is recruiting professionals who can assist in the fields of urban planning, architecture, construction, consumer research, technology, community outreach, and grant writing.
If you would like to assist in the study, e-mail Bridging Broadway President Stephen Samuels at stephen@bridgingbroadway.com.
The $400 million, 500,000-square-foot Cincinnati casino, a joint partnership between developer Rock Ventures and operator Harrah’s Entertainment, may break ground late this year and be completed in 2012.
The development is expected to generate nearly $520 million in annual gambling activity, generate 2,800 jobs, and bring more than six million annual visitors Downtown.

Building Cincinnati: Casino-area study will begin September 1

Where Will Future Development Occur?

Jul 1, 2010 2:40 PM, By Anthony Downs

A confluence of factors will result in most growth taking place on the fringes of major metros.

The location of new commercial real estate will be determined by how fast the economy recovers, how additional commercial development fits future residential strategies, and how decisions about growth are made. The U.S. economy will recover slowly. Consumers have reduced incomes and are saving more. Businesses are reluctant to expand without more customers, as jobs come back gradually.

 

Some urban planners contend this situation requires changing basic U.S. urban growth policies followed for 65 years. Instead of further low-density, outward growth on undeveloped land, they say metropolitan areas should shift residential growth into high-density infill in established communities.

Also, many suburbs were designed around vehicles, but millions of older residents will be unable to drive. They would be better off living where they could walk to grocery stores and other services.

“Walkability” proponents believe the remedy lies in more public transportation, developing high-density neighborhoods near transit stops and locating future population growth in established communities, but with higher densities. Such a strategy also would reduce future pollution from autos.

Whether growth occurs on urban fringes or in infill areas will affect where future commercial properties will locate. They will follow the residential growth.

Development on hold
In the near future, there will be little expansion of shopping centers, office buildings, hotels, and industrial buildings. There is too much vacant space of these property types to stimulate much more investment in the short term.

Moreover, the strategy of densifying existing metropolitan areas and making them more walkable, rather than expanding outward poses major problems. One is the sheer size of future population growth. The Census Bureau projects the population will grow by 55 million from 2010 to 2030, compared with 58 million from 1990 to 2010. In the latter period, the average density of new suburban growth was lower than the density of metropolitan settlements in the previous 45 years since World War II.

Dose of reality
It is unrealistic to believe that even half the additional 55 million people in 2030 can live in infill spaces, or that high-density development will replace large parts of existing built-up areas. So most future growth will continue to be on suburban peripheries.

New neighborhoods will not feature the high densities that are typical of transit-oriented developments like those in Manhattan and Arlington, Va.

A second issue is whether most of the added 55 million people will be satisfied with living in areas based heavily on public transportation. In 2000, only 4.5% of all commuting in America was done on public transportation, and over 80% of all personal travel was in automobiles or light trucks. Vast portions of our suburbs are unserved by public transportation. The reliance on private vehicles is not going to disappear anytime soon.

Moreover, public transportation — especially rail — always loses money. Yet there are no funding sources to increase its capacity. We need to slash our dependence on imported oil. But the best way to do that is to shift the engines in private vehicles to electricity, natural gas, or hydrogen, not to shift people out of private vehicles.

The third problem is that few U.S. metro areas plan growth on a regional basis. Local governments control almost all decisions about growth and the types of housing and neighborhoods they will contain. Those governments are dominated by homeowners who normally reject major changes in the status quo.

These realities mean that future commercial real estate development will arise slowly and will still consist mainly of outward expansion at metropolitan fringes rather than a radical shift to walkability, public transit, high density, and mainly infill developments.

Tony Downs is a senior fellow at the Brookings Institution. He can be reached at tonydowns3254@gmail.com

Where Will Future Development Occur?

        My inspiration to become a real estate developer started while constructing a research project in college. The project was designed to build a company with nothing. During months of prep, I came across an article online about a local developer that went from nothing to top of the food chain. His name is David Imboden, DCI properties and the developer of several upscale condos and townhouses in the East End of Cincinnati.

His story was fascinating to read and awe-inspiring to understand drive, vision, and persistance. I have since created a vision of my own built with the same drive, passion, and persistance that Mr. Imboden used to create his success. During the research project I  continued to uncover his story, how he acquired the property, a day by day log of his progress , an understanding for his critics and sympathizers of how he was removing history to create the future. House by house, option by option, Mr. Imboden cut, tore, dug, poured, hammered, and marketed his way to create Riverside Drive as we see it now in 2010.

His story didn’t stop on the Ohio side, he gathered options on river front property on the Kentucky side as well, developing what we know today as Manhattan Harbor in Dayton, Kentucky. He then continued gathering options on the old Highlands School building and 9 additional acres on Riverside Dr, both of which had future development plans. Over the course of 10-12 years the East End along with parts of the Kentucky riverfront altered from vacant rundown structures, tall weeds and garbage sprawled along the banks, to plush beautiful waterfront condos, townhouses and landscapes. Many of the passersby of the area today take sweet eye candy notes to the alterations of what was the small communities of Fulton and Pendleton; both were big thriving communities located exactly where DCI has developed. During the early to mid 1800′s these riverfront towns were the backbone to constructing fleets of riverboats, steamships, paddle boats and all other water going vessels of the era. DCI’s master plan was taking full effect, molding our riverfront, shaping our views and creating a pleasure piece for the areas residents.

However, today has created perhaps more of burden to some, then for the actual people who financially support its creation. In the reading of “Think and Grow Rich” by Napoleon Hill, he speaks of story about a gold digger from the 1800′s who stopped digging in a mine near the Rocky Mountains of Colorado. He stopped digging after years and years of back-breaking work with only small portions of gold and abandoned the mine. The mine was then re dug by another many years later, who after only 3 feet further struck it rich! The story as true as it is, left me with thoughts of never stopping in my continued drive to become an inspiring real estate developer. Especially today, after discovering that DCI has put up for sale 9 acres of riverfront property and a several thousand square ft school along Riverside Dr in the East End both of which still honor the signs that read “DCI Properties Future Development”.

BREAKING NEWS for REALTORS and their Clients!!!

$8,000

Tax Credit

NOT A LOAN!
PAY NOTHING BACK!

YES, You are reading correctly.

We are so confident the First Time Homebuyer Tax Credit of $8,000 will be extended, we are guaranteeing it will occur, or we will lower the price by $8,000 prior to closing.

Who Will Benefit?

• Individuals who fear they are too late to take advantage of the credit due to expire November 30, 2009.
• Individuals who now want to build a new home that would qualify if the credit is extended, but are unsure the tax credit will be available into next year.

We have homes ready now that can close before November 30, 2009.
We have homes ready to close before December 31, 2009 that will qualify when it is extended or will have the home price lowered by us prior to closing.

See maplestreethomes.com for homes ready now.
Visit a community and speak with a sales counselor for further details.

1. “Guarantee” offer good on purchase agreements executed between October 1, 2009 and November 30, 2009 with closings occurring prior to June 30, 2010.
2. Reduction of final purchase price only occurs if an extension of First Time Buyer Tax Credit does not occur during the promotion and building period.
3. If purchaser qualifies for First Time Buyer Tax Credit, then no reduction of price will occur.
4. No other offers apply and subject to change or be discontinued without notice. See sales counselor for details.

If you need help on where the best deals Maple Street/Fischer Homes are, contact The Home Finder Network Direct. Even new construction home builders can be negotiated with on certain terms. I have recent experience with these negotiable terms. There are some fantastic opportunities with New Construction right now, and when an offer like whats noted above is being offered, it almost makes you wonder why you are struggling with finding a resale/foreclosure/HUD home when you can build what you want on the lot of your choice.

visit www.CincinnatiAreaHomeFinder.com for more.

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