Home Buyer Tips Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

10 Credit Protection Tips for Columbus Area Home Buyers

RealSupport — Thu, 25 Jan 2024 08:39:04 +0000

As cybercrime techniques become more sophisticated, about 1 in 3 Americans can expect to have their identity or financial data compromised. If you plan to buy a Columbus area home in the future, protecting your credit is a must!

Here are 10 ways to protect your credit and your identity, courtesy of the Consumer Financial Protection Bureau and other sources:

1. Check your credit reports. You can order a free credit report from the major bureaus through annualcreditreport.com. These show your personal identifying info and your credit accounts and loans. If anything looks incorrect, contact the reporting bureau right away.

2. Use strong, complex passwords to protect your online activity. Never use the same password on all your accounts.

3. Update the password on your home internet router periodically.

4. Never answer phone calls or texts from numbers you do not recognize.

5. If you answer an unknown caller, do not confirm your identity with the caller. Instead, ask them, “Who is calling?” If you do not recognize the person and/or company, hang up! They could be trying to record your voice to impersonate you for account access.

6. Check your credit card and bank statements thoroughly. Thieves may test access to an account with small transactions. If you don’t recognize a transaction, investigate it, no matter the amount.

7. Avoid inserting your credit or debit card into a card reader whenever possible, especially at gas station pumps and self-checkouts. Use the touchless option and “wave” your card over the reader.

8. If you receive a text or call claiming to be from law enforcement, or any government agency or legal department, it is a scam. Use the “block” option on your phone to prevent additional attempts.

9. Never use a public wi-fi connection to check your bank account balance or to conduct online shopping.

10. Never respond to an email, text, or social media message asking you for money. Emails and texts can be spoofed, and social media accounts can be impersonated and hacked.

This is not a comprehensive list, but you get the idea! Thieves often capitalize on complacency. Paying attention to your communication and to your account activity is worth the effort.

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
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

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Condos: Overlooked Opportunity for Columbus Home Buyers

RealSupport — Tue, 16 Jan 2024 09:49:38 +0000

Columbus home buyers may automatically think of a single-family home when beginning their home search. But for those who want a low-maintenance lifestyle in proximity to amenities and major employers, condominiums have a lot offer – often at a lower purchase price than single-family homes in the same community.

According to Columbus REALTORS©, the median sales price of a Columbus condo was $210,000 as of October 2023. This is a 9.4% increase in price from the prior year. However, it’s still considerably lower than the median single-family home price of $305,000.

There is a big caveat to purchasing a condo, namely the association fees. When you buy a condo, you become a member of the association, with all owners sharing the expenses of maintaining the building and common areas. Monthly association fees can range from $250 to over $1,000, depending on the building and the amenities. In general, the more amenities a building has, the more expensive the association fees.

For some buyers, the trade-offs of avoiding lawn care, snow removal and ongoing maintenance tasks is well worth the monthly association fee. Add in perks like pools, gyms, recreation areas and heated garages, and you have a lot of lifestyle for the money.

But not all condo associations budget wisely for normal operating costs and repairs. Some associations are more livable than others when it comes to the rules of occupancy.

It is essential to review the rules, by-laws and financial statements of the condo association before a purchase. A home inspection of the unit itself should also be performed to ensure all fixtures and included appliances are in good working order. You’ll find more information about this in our free e-book, “How to Buy a Home like a Pro!” Download your copy from our website today, there is no cost and no obligation.

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First-Time Home Buyers Gain Market Share

RealSupport — Wed, 06 Dec 2023 09:26:23 +0000

First-time home buyers made a comeback in 2023, gaining market share even as higher mortgage rates and rising home prices made purchases less affordable. According to the 2023 Profile of Home Buyers and Sellers conducted by the National Association of REALTORS©, first-time buyers accounted for 32% of all home purchases. This is a substantial improvement over the 26% of market share held in 2022.

However, successful first-time buyers are still fewer in number than in years past, when they typically claimed 38% of the market. The high point for first-time buyers was back in 2010, when they accounted for 50% of all home purchases.

The 2023 gain in market share came at a price. The survey shows a median annual household income of $107,000 for first-time buyers, a nearly 20k increase over income thresholds shown in the 2022 survey.

First-time buyers made an average down payment of 9%. About 24% of survey respondents tapped their retirement savings or investment accounts to generate their down payment. 11% of first-time buyers sold stocks or bonds. 11% used funds from a 401k, IRA or pension. 2% reported selling cryptocurrency.

When looking at demographics, most first-time buyers were Millennials with a typical age of 35. This is similar to 2022’s findings, where the typical first-time buyer was 36. 59% were married couples. 70% of them did not have children under 18 years old.

What is unspoken, but evident in the survey, is a widening wealth gap among first-time buyers. Unrelenting home price increases, paired with interest rate levels that are double from two years ago, have pushed home ownership out of reach for a growing number of people.

This is easy to overlook while home inventory is low, and homes are selling quickly. However, there are not enough affordable homes for buyers with the national median income of $74,580, or for those earning less. This is one possible reason why the number of successful first-time buyers are below historical norms.

Now the good news: you don’t have to be rich to buy a Columbus area home, but you do need to be well-informed! Not all homes are priced correctly for their condition or for the prevailing market trends. We show you how to identify value and create a compelling purchase offer in our free e-book, “How to Buy a Home like a Pro!” Get your copy now at the link, there is no charge and no obligation.

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Columbus Home Buyers, Shop Around for your Mortgage!

RealSupport — Wed, 06 Dec 2023 09:13:39 +0000

When it comes to getting a mortgage, Columbus home buyers don’t always shop around for the best deal. But you should! According to Freddie Mac, home buyers who obtain and compare at least 4 mortgage offers save an average of $1,200 a year on financing costs.

When comparing loan offers, few borrowers look beyond the interest rate and the origination fee, but there is more to consider. Mortgage costs include underwriting fees, document preparation fees, processing fees, tax service fees and courier fees. During your comparisons, you may find that a nominal difference in interest is not worth the tradeoff of more expensive fees.

Also check for any “points” in the loan estimates. A point is a form of pre-paid interest, which buys a reduction in the interest rate. A full point is basically one percent of the loan amount. You are not required to pay points, but if you choose to do so, be sure your mortgage comparisons are working with the same point value. (Full point, half point, etc.)

To simplify matters, Bankrate suggests comparing the APR, or annual percentage rate, on your mortgage offers. The APR includes all fees involved with the financing, as well as the interest rate itself. Comparing APR’s on your mortgage offers can give you a look at the bottom line.

Most lenders allow you to roll some, or all, of the closing costs into the loan. Use caution. Rolling in your closing costs will increase your principal balance, and your interest will be charged on that balance.

Before you begin shopping for a mortgage, it pays to have your own financial condition in the best possible shape! The better your credit score and the stronger your down payment, the better your mortgage offers will be. Learn more with our free e-book, “How to Buy a Home like a Pro!” There is no cost and no obligation.

And, if you choose to become our Buyer-Client, we can help you evaluate and compare your mortgage offers, because we provide a fiduciary level of service to our clients!

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Gahanna Ohio Named Hottest Zip Code in USA by Realtor.com

RealSupport — Wed, 30 Aug 2023 04:55:16 +0000

Gahanna is known as the Herb Capital Ohio. With a population of around 35,000 residents, this picturesque community offers all the conveniences of a larger city, while maintaining a beautiful park system spanning 750 acres. If this sounds good to you, you’re not alone – Gahanna zip code 43230 was named as the “Hottest Zip Code of 2023” by Realtor.com.

In awarding the title, Realtor.com examined the most popular home searches around the country, based on the number of views for each listing in a community, and the overall pace of home sales. Gahanna homes for sale received 4.5 views per property, the most for any community in the USA. Interestingly, about 13% of the viewing activity hailed from the New York City, Newark and Jersey City area.

The relatively high proportion of out-of-town home searches suggests that Gahanna’s quality of life and affordable real estate are drawing buyers from larger, more expensive metros. Throw in a booming job market, and it’s easy to see why Central Ohio appeals to buyers from around the country.

In fact, Gahanna wasn’t the only Ohio city on the “Hottest” list. The top 50 list of “Hottest Zip Codes” included 10 Ohio communities: Gahanna, Dayton, Maumee, Howard, Ashland, Mansfield, Wooster, Chillicothe, Medina and Middleton. The median home price in these communities ranged from $166,000 to $418,000.

As we mentioned in prior blog posts, the competition facing local Central Ohio home buyers is not limited to fellow residents. The imbalance between home demand, supply and affordability is an issue in many parts of the country, and there isn’t an easy answer. It’s a challenge that the Columbus region may face for years to come.

However, even a “hot” market shouldn’t be taken at face value! Every market has nuances depending on location, price point and so on. Every home is unique, with its own pros and cons. Without expert guidance, you could find yourself paying too much for a home – or buying a home that doesn’t suit your needs, or both! You can see examples about this in our free e-book, “How to Buy a Home like a Pro!”

Photo credit: image of Creekside Gahanna, a mixed-use development in downtown Gahanna, sourced through Wikipedia Creative Commons licensing, attributed to Fahlgrenwikitest. For more information, visit https://en.wikipedia.org/wiki/Creekside_Gahanna

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Central Ohio Home Buyers Manage a Tough Market

RealSupport — Wed, 30 Aug 2023 04:18:58 +0000

The pace of Central Ohio home sales decreased slightly during July 2023, but home buyers are still facing a tough market. Here’s the latest real estate data from Columbus REALTORS®, along with our own insights!

During July, Central Ohio homes spent an average of 17 days on market before going under contract. This is about 30% slower than July 2022’s pace of 13 days on market. In Franklin County, homes spent an average of 14 days on market.

Home inventory, while improving in some areas, remains a challenge in most of Central Ohio. There were 3,137 homes on the market during July, a decrease of about 12% from July 2022. Franklin County saw home inventory fall by 19% on a year-over-year basis.

Home prices have continued to climb higher. The median price of a Central Ohio home reached $314,900 during July, an increase of 8.6% on a year-over-year basis. The silver lining for buyers: July’s home prices cooled slightly compared to June 2023, when the median sales price was a record-breaking $322,205. Meanwhile, Franklin County median sales prices increased 5.3% from a year ago.

Home buyers are also facing the highest mortgage interest rates in over 20 years, according to industry data from Freddie Mac. As of August 24, the average rate for a 30-year, fixed-rate Conventional mortgage reached 7.23%, a level not seen since 2001.

Despite the challenges of low home inventory, fast-paced sales, rising home prices and higher mortgage costs, many Central Ohio buyers are finding ways to adapt and succeed in this market. Larger down payments, adjustable-rate mortgages, and well-qualified co-signers are just a few of the tactics home buyers have employed. But the best advantage a Central Ohio home buyer can get for themselves is the professional representation of an Exclusive Buyer’s Broker!

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Are Central Ohio Homes Still Affordable?

RealSupport — Tue, 18 Jul 2023 08:35:17 +0000

The Central Ohio real estate market set a new median high for home prices during May 2023, reaching $320,000. According to Ohio REALTORS©, this is the highest median home price posted during any month on record.

Central Ohio home buyers are feeling a double squeeze of higher home prices and higher mortgage interest rates. As of June 28, 2023, the average interest rate for a 30-year fixed rate mortgage was 6.71%, a full percent higher than the same period a year ago. So far, home demand in Central Ohio has not suffered from these increased costs, but not all home buyers are able to keep up.

A recent report from ATTOM Data shows that home affordability worsened nationwide during 2023. The portion of wages a typical home buyer must dedicate to a mortgage payment currently averages 33%. Ideally, mortgage lenders like to see a front-end debt-to-income ratio of 28%. ATTOM’s study included median home prices in 574 U.S. counties, and among those, 565 were deemed less affordable than they were in 2022.

Central Ohio homes are still generally considered affordable, especially compared to home prices in other major metros. ATTOM reports that Franklin County home buyers spend about 29.1% of their annualized income on a mortgage, based upon local median wages. On the index of home affordability, with 100 being historically affordable, ATTOM ranks Franklin County at 67. Central Ohio is not the most affordable housing market in the nation, but we are far from being the worst.

The question facing home buyers is where Central Ohio home prices and mortgage interest rates go from here. Odds are, both may increase in cost in the weeks ahead. A well-prepared home buying budget plan, along with a current mortgage pre-approval letter, should be in hand before entering the market – with an Exclusive Buyer’s Broker at your side!

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How to Avoid Fraud During Your Columbus Area Home Purchase

RealSupport — Tue, 18 Jul 2023 08:25:12 +0000

Wire fraud is actively targeting Columbus home buyers and buyers around the country. If you are buying a home anywhere, you are at risk! Through sophisticated email phishing schemes, and the impersonation of legitimate parties, criminals have stolen millions of dollars in down payment funds.

Here are tips from title companies to protect your down payment from theft!

Be suspicious about ANY email changing the instructions for your down payment. Never accept “new” wire instructions that come through email. The more urgent and high-pressure the email sounds, the more suspicious you must be!

Call the title company’s closing officer to verify wiring instructions before you send any money – but do NOT use a phone number from an email. Be sure to have a business card from the title company officer who will handle your closing. When in doubt, reach out to your mortgage lender and real estate agent.

Have your bank confirm the account number associated with your wiring instructions, along with the name on that account. Be sure this information perfectly matches. Never assume that a discrepancy is a mere typo or human error.

You can test the wiring instructions you have by sending a small amount first. Call your title agent to verify receipt of the test wire, before sending the rest of the funds.

Always feel welcome to communicate via telephone with the people involved in your home purchase!

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Institutional Investors vs. the Ohio Home Buyer

RealSupport — Mon, 17 Apr 2023 21:44:18 +0000

Real estate investors count single-family homes among their most profitable assets. According to the Greater Ohio Policy Center, 21% of all home sales in Ohio were purchased by institutional investors in 2021. Institutional investors accounted for roughly 25% of all home sales nationally.

An institutional investor invests significant money in securities or assets on behalf of its clients. Institutional investors include Real Estate Investment Trusts (REITS) hedge funds, and other investment pools that can manage billions of dollars. Your pension fund, 401k or investment portfolio might include a REIT or similar product.

Institutional investors may compete against smaller investors and individual buyers for single-family homes. Once a home is bought by an investor, it might be updated and flipped for a profit, but the majority are converted to rental properties. When multiple homes are purchased in a given area by an institutional investor, it can leave scant inventory for owner-occupant buyers.

It isn’t clear how much residential real estate is currently owned by investors. However, MetLife Investment Management estimates that institutional investors will hold more than 40% of all single-family rentals by 2030.

Some Ohio lawmakers are concerned about the impacts of such investment activity, and have drafted Senate Bill 36 and Senate Bill 76. Senate Bill 36 would grant tenants of rental properties, as well as certain non-profits, the right to purchase properties being foreclosed. Senate Bill 76 creates investor transparency requirements regarding ownership, and assigns impact fees to high-volume landlords. These bills remain in discussion at the Ohio Statehouse.

Meanwhile, Ohio home buyers are not completely shut out. Institutional investors only offer about 60% of a home’s asking price, per industry estimates. Not all sellers are willing to take that kind of haircut, even for an all-cash deal! A home buyer who has a mortgage pre-approval and representation by an Exclusive Buyer’s Broker can compete quite well. Learn more with our free e-book, “How to Buy a Home like a Pro!”

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Cash Buyers Remain a Force in Columbus Real Estate

RealSupport — Thu, 16 Mar 2023 07:12:05 +0000

Columbus home buyers have faced competition from cash-paying investors since the Great Recession. Recent information from ATTOM Data Solutions, as reported in Columbus Business First, suggests that cash purchases may take a larger share of the market in the months ahead. Here are the highlights, along with our own research!

During 2022, all-cash buyers accounted for 36.1% of home sales. This is the second-highest percentage of cash sales since 2011-2012, when cash sales accounted for 38.5% of all home sale transactions.

This information is concerning, given that first-time buyers represented just 26% of home sales nationally during 2022, according to the National Association of REALTORS®.

Conditions for first-time home buyers are somewhat better in Central Ohio. According to Columbus REALTORS®, first-time buyers purchased about 38% of all homes sold during the first quarter of 2022. The Columbus Dispatch reported that all-cash home purchases accounted for 24.3% of home sales during roughly the same period.

2023’s higher interest rates make mortgages less affordable than they were just a year ago, and cash buyers are not going away. Fortunately, our free e-book, “How to Buy a Home like a Pro,” gives you expert tips for making compelling offers – without breaking your budget! If you are financing your home purchase, read this book first.

As Exclusive Buyer’s Brokers, we serve your best interests at all times. Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

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