Buying a Columbus home Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Columbus Home Buyers, Get Ready for 2024!

RealSupport — Tue, 16 Jan 2024 09:39:55 +0000

Columbus home buyers had a challenging year in 2023. Fast-rising home prices, combined with the highest mortgage interest rates in over 20 years, made home buying an expensive prospect. Limited home inventory kept buyers under pressure.

The New Year may bring better opportunities for home buyers, based on the latest projections from the National Association of REALTORS.^© Mortgage interest rates, which have already softened in recent days, are expected to stabilize below 7%. A rate environment between 6% and 6.75% is a possibility by summer.

That’s good news! But lower rates may draw more buyers to the market while the inventory of homes for sale remains low. We have seen modest improvement in year-over-year inventory levels during 2023, though it remains below normal. Low inventory is a recipe for higher home prices in 2024.

On the bright side, there is a chance that pent-up sellers could make a move this year. Columbus area homeowners are sitting on records levels of equity. Life events and changing household formation can motivate owners to become sellers, financial gains aside.

On the other hand, about 90% of homeowners with active mortgages have rates of 5% or less. They may not be in a hurry to sell, when replacing their current home would mean facing a more expensive mortgage. Roaring inflation further entrenched these homeowners, who found the cost of living rising on every other front.

If you are looking to buy a Columbus area home during 2024, don’t wait to react to market conditions. Instead, be well-prepared and ready to take action when the right opportunity comes along! Get ready for your home purchase by reading our free e-book, How to Buy a Home like a Pro!” Get your copy from our website today, there is no obligation.

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!

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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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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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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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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What Columbus Home Buyers Should Know About Mortgage Buydowns

RealSupport — Tue, 17 Jan 2023 13:19:47 +0000

Rising interest rates have revived some mortgage options, and Columbus home buyers could find them useful. One such option is the mortgage buydown. This is similar to paying “points” on a mortgage, but it’s a bit more complex.

First, the basics: paying points on a mortgage is pre-paid interest. One point is typically 1% of the amount borrowed. By paying a point, a home buyer can reduce the effective interest rate on their mortgage. The corresponding reduction in the monthly mortgage payment may be nominal, given a 30-year amortization.

With a mortgage buydown, the points are applied to a specific period. For example, there is a “3-2-1” buydown. This means the mortgage payments would be temporarily lower for the first three years. During the first year, the payments would be at their lowest; during the second year, the interest rate would go up by 1%; and during the third year, the interest rate would go up another 1%. At the fourth year, the full, locked-in interest rate would resume.

Another option is the 2-1 buydown. In this scenario, the interest rate is only reduced for the first two years of the mortgage, but the first year has a bigger discount in the payments. For example, the rate would be 2% lower during the first year, then just 1% lower the second year, and then resume the full rate by year three.

Here’s why buydowns are getting attention: if the lender allows it, sellers may pay for the buydown as a concession to the home buyer. Depending on the math and the situation, it can be more advantageous for a seller to contribute points to the buyer’s financing than to reduce the price of the home. For the home buyer, a buydown could reduce their mortgage payment more effectively than a reduction in the home price.

These are very individualized calculations, and Columbus home buyers should examine buydown options carefully. As your Exclusive Buyer’s Broker, we provide a fiduciary level of representation to you, which enables us to provide you with objective, honest advice about your mortgage options!

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Making a Back-Up Offer on a Central Ohio Home

RealSupport — Thu, 28 Jan 2021 09:27:29 +0000

When searching for Central Ohio homes online, you may find listings marked “Contingent – Finance and Inspection” or “Contingent Escape” or “Contingent Lien-holder Release.” While these terms mean there is an accepted offer, the deal isn’t done until closing. It can be worth giving these homes a look. Here’s why!

“Contingent – Finance and Inspection” means that the purchase is subject to a satisfactory home inspection, and/or buyer financing loan approval, or other detail. If the contingencies are not satisfied, released or waived, the seller may have to start over with another buyer.

“Contingent Escape” means the seller has an accepted an offer that is contingent upon that buyer selling THEIR home first. “Contingent Escape” means the seller can “bump” the current deal aside if they get a similar or better offer without a “home to sell contingency.”

In the above examples, making a back-up offer could put you “next in line” for the home if the first deal falls through.

There are downsides to making a back-up offer. Namely, there is no guarantee of any success, and you are sidelining yourself from the market while things play out.

Because we have broker-level access to the Columbus Regional Multiple Listing Service, we can comb through agent listing notes and seek opportunities for back-up offers. And because we are completely loyal to our Buyer-Clients, any information we discover that is material to your best interests is shared with you!

As your Exclusive Buyer’s Broker, 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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7 Reasons Columbus Home Buying is Tough in 2021

RealSupport — Thu, 28 Jan 2021 08:56:39 +0000

Recently, we had the opportunity discuss Central Ohio home buying conditions with the Columbus Dispatch. As we said in the article, the Columbus real estate market is, bluntly speaking, insane! The current market frenzy is unlike anything we’ve seen in our nearly 3 decades in the business.

With a market this fast, buyers are making quick decisions about the largest transaction of their lives. Buyers are digging into their financial reserves to accomplish a home purchase – and then digging deeper to win a bidding war!

Here are 7 reasons why Columbus home buying is tough in 2021:

1. Pandemic-driven lifestyle changes, making homes a place to live, work, attend school, exercise and enjoy recreation, driving a need for more housing space.

2. Lowest mortgage rates in modern history, averaging below 3% for a 30-year fixed rate mortgage.

3. A mobile workforce that can work remotely while living virtually anywhere, swelling the ranks of out-of-town buyers.

4. A soaring stock market and rising home prices, which have empowered buyers who hold financial assets and/or equity in a prior home.

5. Home owners with little desire to sell because of the pandemic, or because of scant home supply to choose from, or because they recently refinanced their mortgage.

6. An improving Central Ohio economy, with one of the lowest pandemic-era unemployment rates in the country.

7. Chronically-low home inventory that cannot keep pace with demand.

The deck is stacked against buyers. This is exactly why you must not throw caution to the wind right now. Home ownership is a long-term endeavor, and the “fear of missing out” could cause short-sighted decisions!

Of course, we do have guidance for this market, and we share it with our Buyer-Clients! When you become our Buyer-Client, we will work hard to find you opportunities and help you succeed in these competitive conditions. We also “tell it like it is” so you are prepared for what you’ll be getting into.

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Columbus Home Buyers, Think Twice About These Bidding War Strategies

RealSupport — Thu, 31 Dec 2020 13:23:30 +0000

Columbus home buyers who are frustrated by being out-bid may be tempted to try risky, over-the-top clauses in their purchase offers. As home buyers turn to social media for new bidding war strategies, these ideas are gaining ground around the country.

These risky strategies might work, but you would literally be winning the bidding war “at all costs” – namely yours! Please keep in mind that these tactics have been promoted by agents who represent the sellers.

As Exclusive Buyer’s Brokers who look out for the buyer’s best interests at all times, we do not recommend these.

Automatic escalation clause: when used in a purchase offer in a bidding war, this states that the buyer will automatically exceed the highest qualfied offer by a set amount. Depending on the local market, this could be an additional $2,000 to $10,000 or more. In theory, it’s impossible to be out-bid because you would automatically have the highest offer on the table.

Of course, if another buyer has an automatic escalaction clause and has a higher exceeding amount, you could still be out-bid.

Even if you “win” you have committed to a price higher than what any other buyer could support. You would also need deep pockets to cover any amount above what your mortgage financing would handle. Which brings us to the next concept:

Appraisal gap guarantee clause. This clause states that if the mortgage company appraisal comes in for less than the sales price, the buyer promises to cover the difference in cash. In other words, the seller doesn’t have to give an inch! It’s a great deal for sellers, but it literally puts buyers “underwater” in equity on day one.

No matter how “hot” a real estate market might be, home buyers should not lock themselves into clauses that place them at a serious financial disadvantage. It is never in your bests interests to overpay for a home!

Instead of tactics like these, we recommend you read our free e-book, “How to Buy a Home like a Pro,” and utilized our time-tested strategies that work in all market conditions! Better yet, become our Buyer-Client and get the best home buying representation in the business. We can help you craft a compelling offer without putting your financial interests at risk.

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Columbus Area Homes Selling Like Hotcakes

RealSupport — Thu, 26 Nov 2020 09:34:44 +0000

The volume of Columbus home sales increased 19% on a year-over-year basis, according to October statistics from Columbus REALTORS®. The Columbus area remains very popular with home buyers, even as other areas of the country see an exodus. Our resilient economy, quality of life and affordable housing remains a draw for buyers.

At the same time, Central Ohio homeowners are happy to stay put. The inventory of homes for sale in Metro Columbus has been declining for years, and as of November 19, stood at just under 2,400 homes. This is about half the inventory of a year ago.

New home development is in progress in Metro Columbus, but it will take time for these homes to reach the market. Hilliard has approved zoning for 1,098 single-family homes and apartments, with construction slated to begin in 2022. Meanwhile, 252 homes are in the works for northwest Delaware, and residential units are proposed for the Shops at Worthington re-development.

While new construction is welcome, home prices will remain stubbornly high for the foreseeable future. Builders are facing rising costs for land, materials and labor, and these costs are passed on to buyers. Buyers considering new construction should get our free e-book, “How to Buy a Home like a Pro,” and obtain the representation of an Exclusive Buyer’s Broker!

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4 Decisions for First-Time Columbus Home Buyers

RealSupport — Thu, 26 Nov 2020 09:21:18 +0000

Buying your first Columbus home requires planning! If you are daunted by where to start, here are four basic, but important, decisions to help you begin.

1. Choose your real estate agent. We recommend an Exclusive Buyer’s Agent or Exclusive Buyer’s Broker! We make a critical difference in the home search and purchase process, potentially saving you thousands of dollars!

We also protect you from pitfalls that traditional agents may not point out – because they represent the seller! Read our free e-book to learn what other agents aren’t telling you.

2. Choose your mortgage. Seek a mortgage pre-approval from a reputable Columbus area lender. We can personally refer you to local lenders! If you are our Buyer-Client, we can also help you compare your mortgage offers.

3. Choose your preferred home locations in the Columbus area. Your home buying power may go further in some communities than others. If you are set on a certain school district, or wish to be close to family, decide these priorities now.

4. Choose the kind of home you need for your budget and household. What are your priorities in the home itself? There may be tradeoffs in your home search. Decide your must-haves before you begin your search.

As our Buyer-Client, you’ll have the full benefit of our information, experience and guidance. This will give you the confidence to make the best possible decisions.

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