Move over, investors – Columbus home buyers are interested in short sales and foreclosures. According to the Columbus Dispatch and the Columbus Board of Realtors, more home buyers are giving distressed properties a chance and our own Buyer-Clients are getting some fantastic values “IF” they can be patient!
The difference in sale price between a distressed home and a regular sale can be considerable. Traditional home sales have a median price of $163,000.
As a result of increased home buyer appetite for short sales and foreclosures, Central Ohio saw a 42% drop in distressed properties during the first three months of 2014. During this period, distressed properties accounted for 38% of all home sales. The absorption rate of distressed homes has been accelerating, with these homes spending an average of 61 days on market. However, a new report indicates a new wave of distressed properties are entering the market – so we are NOT out of the woods yet! 11,991 Ohio properties were involved in a foreclosure action, up 12 percent from March and 23 percent from April 2012, according to the foreclosure-information company RealtyTrac.
While the number of foreclosure filings continues to drop in Ohio, sheriff auctions surged 33 percent during April and are up 73 percent from a year ago to the highest level in more than five years.
While the inventory of distressed properties is down 60% from its peak, this inventory varies by city and neighborhood. For example, more than half of home sales in Whitehall involved short sales or foreclosures. Meanwhile, distressed home sales in Upper Arlington and Grandview accounted for only 10% of all sales.
Generally, the fewer distressed properties there are on the market, the stronger home values become. This is just one reason why home prices will vary from one Columbus neighborhood to another. Everything is “hyper-local”!
Columbus home buyers who are interested in buying a short sale or foreclosure need to exercise caution. Due diligence is a must, as these homes often suffer from deferred maintenance. Your purchase offer should include contingencies that provide an exit strategy. A home inspection should be performed at the earliest opportunity. Having your own Exclusive Buyer’s Broker on your side is critically important in all home buying situations, and especially true when purchasing a short sale or foreclosure!
Contact us and learn more about home buying strategies in Central Ohio! Also, download our free e-book for immediate tips that you can use today.
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
www.BuyersHome.com
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