Central Ohio home buying Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

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.

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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What Central Ohio Home Buyers Should Know About Water & Foundations

RealSupport — Thu, 31 Dec 2020 13:40:33 +0000

Among the worst-case scenarios for any Central Ohio home buyer is discovering that your recently-bought home has a problem with the foundation. This might be revealed after a heavy rainfall or snow melt that causes water to seep inside.

While Ohio home sellers are required to disclose any defects they are aware of, you cannot rely on this for recourse if a problem occurs down the road. Nor can your home inspector always detect a problem; finished basements may hide cracks or mold that evade a visual inspection.

However, there are some rules of thumb you can follow:

1. Check the gutters and downspouts. If they are in poor condition, missing or expelling water very close to the foundation, the foundation walls could have been exposed to water and the pressures of wet soil for a number of years. In turn, this increases the odds of a crack or a moisture issue.

2. Examine the topography around the home. Does the soil appear to be very low, or slope towards the foundation? Ideally, the home should be seated at the highest point of the lot, with soil sloping away from the home to send water runoff away from the foundation.

3. Underground water tables can be high enough in some areas to cause issues. In this case, catch basins and sump pumps are the best way to draw water up and out. Your home inspector should ensure that sump pumps are tested. Back-up systems should be installed against power outages.

4. The existence of a waterproofing system isn’t necessarily a sign of a problem, but nor is it a guarantee against future issues. If you or your home inspector have any concerns about a foundation, call in an expert for a closer look. Get our free e-book, “How to Buy a Home like a Pro” for details about home inspections and how the right contractual language protects you!

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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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3 Home Search Mistakes Columbus Buyers Should Avoid

RealSupport — Wed, 23 Sep 2020 09:42:20 +0000

The lean supply of Columbus area homes for sale can make buyers anxious, and inspire them to get too creative with their home search. Some tactics can backfire and close more doors than they open. Here’s what not to do during your Columbus home search!

Do not call the listing agent for each home that interests you. You would be giving away information about yourself to a number of agents, who can use that information against you for the seller’s benefit. Listing agents typically encourage you to “act fast” and make the highest possible offer! They may also suggest that you waive essential contingencies, such as a home inspection, to make your offer more “competitive.”

As fiduciary agents to the seller, listing agents are required to get the best price and terms for them – not you!

Note: an Exclusive Buyer’s Broker can help you write a compelling offer without overpaying for the home, and without sacrificing protective contingencies!

Do not “spread the word” about your home buying plans. Eager buyers might tell several agents, as well as residents in the neighborhood that they are looking to buy a home in a certain price range. Buyers hope that by putting out multiple “feelers” they will have an advantage.

This can backfire! These agents have the same local MLS access. When a new listing comes to market, these agents will say they “have a potential buyer.” (Namely you!) The neighbors will tell the home seller that they know a buyer, too. Suddenly, the sellers think they have the hottest listing on the market – and they’ll want to stand firm on the price!

When all these agents contact you to set up a showing for the same home, it’s awkward at the least! Once the duplication of effort is discovered, they will have little motive to help you further.

As your Exclusive Buyer’s Broker, we can show you any home on the market, including FSBO and new construction. We have Broker-level access to all internal details in the Columbus Regional MLS, and an excellent network of home builders and industry professionals. In short, we give you the widest selection of listings, plus the new listing alerts via the MLS, and your own buyer portal into the listings database!

Do not look at several homes with an agent, then write an offer using someone else. Agents do not have an hourly wage. They are only compensated by commission, if the sale has a successful closing. Making a last-minute change of representation robs an agent of their compensation, and can lead to a “Procuring Cause” dispute between agents – with you stuck at the center.

The great news is, our Buyer-Clients don’t suffer these “Procuring Cause” disputes!

We promise our Buyer-Clients undivided loyalty, and we work hard to obtain the very best price and terms for them on the home they choose. Our fiduciary level of service costs nothing extra – and actually gives buyers the most choices in the market, with superior representation in the home search and purchase process! We will be happy to explain how we do this!

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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Columbus Real Estate Market Humming Along

RealSupport — Mon, 03 Aug 2020 09:07:25 +0000

Columbus home buyers have proven resilient against anything 2020 can throw at them, according to the latest market data reported by Columbus Business First. The number of homes under contract increased by 17% on a month-over-month basis from May to June. Ultra-low mortgage rates and limited home inventory keeps home buyers motivated, even while the ranks of home sellers remain thin.

Columbus area home demand continues to push prices higher. Average home sale prices in June 2020 increased 4.1% over June 2019, reaching $272,020. Looking at the math another way, the median home sale price increased 5.7% to $241,000. “Median” means that half of the homes sold for more than $241,000, and half sold for less.

In Ohio and throughout the country, the resilience of the real estate market is a bright spot in an otherwise troubled economy. Most economists expect that the broader economy will stay on a recovery path as long as home buyers continue to show confidence. Home sellers have proven more reluctant to take their chances the market, perhaps due to pandemic concerns, economic caution or limited housing options.

Meanwhile, as mentioned in our prior blog post, Columbus area mortgage defaults have been creeping up. This does not signal a paradigm shift in the market, however. Unlike the market decline during the Great Recession, home prices today are steadily rising. These days, most homeowners have more “skin in the game” due to appreciation in home value, which incentivizes them to avoid foreclosure if possible.

Unless we see an abrupt glut of homes on the market, home buyers shouldn’t expect sudden bargains. Still, market conditions from one neighborhood to another will always vary, and Columbus home buyers should have their own exclusive representation for expert advice!

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Columbus Mortgage Defaults Start to Rise

RealSupport — Fri, 24 Jul 2020 09:44:50 +0000

Recent data from CoreLogic shows mortgage defaults on the rise. Here are highlights from the report published in the Columbus Dispatch, along with our insights!

First, we should mention that some level of mortgage default is normal, due to unforeseen hardships befalling borrowers. Prior to the Great Recession, defaults averaged between 2% and 3%.

In the early months of 2020, new mortgage defaults were fueled by pandemic disruptions. During April, 6.1% of borrowers nationwide fell behind on their mortgages. Some metros saw default rates swell to 10%. In Ohio, 5.6% of all residential mortgages were in default.

During March 2020, Columbus area mortgage defaults were averaging 3.6%. As shutdowns took hold in April, Columbus mortgage defaults reached 5.2%.

Default rates are likely to stay above norm until unemployment levels simmer down. The U.S. Bureau of Labor Statistics reported an Ohio unemployment rate of 13.9% during May. This improved to 10.9% in June, based on preliminary data. It will be a long walk back to normal employment levels, but there is hope that the worst is behind.

Our local economy, while affected by the pandemic, has been more resilient than other areas of the country. Steady demand exists for Central Ohio homes, and the limited supply of homes for sale has kept home prices climbing. Columbus home buyers should stay alert to changing conditions, and use an Exclusive Buyer’s Broker to ensure a wise purchase!

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Columbus Home Sales Pick Up Speed

RealSupport — Fri, 26 Jun 2020 08:44:46 +0000

Record-low mortgage interest rates are adding fuel to Central Ohio home demand. Buyers have been practically racing to available homes, causing May 2020 home sales to speed up in all price ranges.

Interestingly, homes priced at $500,000 saw the greatest reduction in days-on-market. Here’s a look at the pace of May home sales by price range, and the percentage difference from April 2020:

Homes priced under $350,000 = 24 days on market, 4% faster
Home priced over $350,000 to $500,000 = 37 days in market, about 12% faster
Homes priced over $500,000 to $700,000 = 50 days on market, about 30% faster
Homes priced over $700,000 = 50 days on market, about 16% faster

Overall, the inventory of Metro Columbus single-family homes and condominiums for sale increased 18.6% from April 2020 to May 2020. But on a year-over-year basis, home inventory stands 26.5% lower.

A speedy market comes at a price. Namely, a higher home price! The median sales price of a Metro Columbus home increased 5.9% on a year-over-year basis, reaching $233,000. When taken as an average, home prices increased by 2.0%, reaching $258,688.

We are back to bidding wars in certain neighborhoods. Central Ohio home buyers should be prepared for competition! Still, this does not mean blindly bidding up the home price. When you become our Buyer-Client, we help you make a successful offer by applying time-tested strategies! We also ensure you have contractual protections included to protect your interests.

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Columbus Real Estate Market Tough for Home Buyers

RealSupport — Tue, 03 Mar 2020 07:50:53 +0000

Home buyers in the Columbus Metro face a difficult market in 2020. The situation is such that Columbus was recently named one of the “Hardest Cities to Buy a Home” by Realtor.com. The ranking compared the number of homes available for sale per every 1,000 households in the largest U.S. metros.

We’ll cut to the chase: Columbus was named as the 5^th-hardest city to buy a home. Cities topping the list were San Jose, Buffalo, Seattle and Milwaukee. Notoriously-tough cities for home buying like Salt Lake City, Boston and Washington D.C were “easier” markets than Columbus.

Columbus home inventory has lagged behind demand for several years. As we explained in a recent article published by the Columbus Dispatch, this is the toughest market we’ve seen for home buyers in our 28 years of business. While buyers are buoyed by a strong regional economy and low mortgage interest rates, there aren’t enough homes for sale in the price range of $250,000 or less.

There are several reasons why affordable home inventory is scarce. During the recession, a multitude of single-family homes were acquired by investors and converted to rental properties. Home builders, with rare exception, cannot build profitable homes under $300,000. Meanwhile, current homeowners may feel locked down by the same market dynamics vexing other buyers. With few homes to choose from, there’s practical caution about listing the roof over your head.

The Columbus real estate market is likely to stay competitive in the months to come. Working with an Exclusive Buyer’s Broker gives you the best chance of home buying success! Unlike typical brokerages, we are willing and able to show you any home on the market, including homes for sale on the Columbus Regional Multiple Listing Service, homes For Sale by Owner, and homes for sale directly by home builders.

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Mistakes to Avoid When Buying a Columbus Home

RealSupport — Fri, 09 Aug 2019 04:57:45 +0000

A new home buyer survey reported by CNBC shows that buyer’s remorse has been on the upswing. One reason is the limited inventory of affordable homes facing buyers around the country. With little to choose from for the money, some buyers purchased homes that they quickly outgrew. Others purchased homes that needed more repairs than expected.

Yet there is simple, significant reason for home buyer remorse: uninformed decisions.

For example, the survey found that 40% of buyers accepted the first mortgage offer they received, because they had no idea what options were available to them. This means they likely overpaid for mortgage fees, and could have possibly received a better interest rate elsewhere.

About two-thirds of surveyed buyers said they regretted not having a larger down payment. While it’s possible to obtain a mortgage with only 3% down, the resulting mortgage insurance premiums can be a pricey addition to the mortgage payment.

Not surprisingly, 52% of respondents said their total mortgage payment was too high for their budget.

Despite these issues, home ownership was still seen as a positive achievement by 59% of respondents, who identify home ownership as part of the “American dream.”

What the survey does not address is the quality – or lack thereof – in the home buyer’s representation! When you become a Buyer-Client of Buyer’s Resource Realty Services, you receive true fiduciary representation. This means we can help you screen your mortgage offers for the most advantageous financing. We also negotiate exclusively on your behalf for the best possible price and terms for your home purchase.

Typical real estate agents do not provide the level of home buying guidance and protections that we deliver. In short, the easiest way to avoid buyer’s remorse is to use an Exclusive Buyer’s Broker!

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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Mortgage Pre-Approval Remains Essential for Columbus Home Buyers

RealSupport — Sun, 05 May 2019 02:14:13 +0000

Quick! How much home can you afford to buy? The answer might seem simple, but it isn’t! Columbus home buyers need to understand the difference between a mortgage pre-approval, and a mortgage pre-qualification.

A mortgage pre-qualification is an informal estimate of your home buying power, based on unverified information you give to the lender. Lenders sometimes market “instant pre-qualification” to buyers, in the hopes of attracting new business. At best, a pre-qualification can give you a frame of reference for your potential home buying power. There is no commitment by the lender to actually loan you money in any amount.

A mortgage pre-approval takes you through a full application and underwriting process. In this situation, all of your employment, financial and credit information will be verified. You’ll need to provide copies of your last 2 years of income tax returns, plus 2 months of bank statements, a month’s worth of pay stubs, and authorize a review of your credit report.

Due to automated underwriting, the pre-approval process doesn’t take is long as it once did. Depending on the lender and the type of mortgage you seek, you might have an answer in a matter of weeks, days, hours – or even minutes. The reply you receive will be one of the following:

Approved
Approved with conditions
Suspended (more info/documentation/verification required)
Denied (reasons for denial will be provided by lender)

While no one wants to receive a mortgage “pre-denial,” it’s far better to discover an issue with financing before you make an offer on a home! It gives you the opportunity resolve issues – and reapply – before you have a home on the line.

If you’ve done your homework, such as reading our free e-book, “How to Buy a Home like a Pro,” you will likely have performed some financial preparation prior to your mortgage application. Things like a steady employment history, consistent income, good credit, good savings habits, and modest debt levels will help your chances of approval.

Once you have a mortgage pre-approval in hand, you can browse homes for sale in the appropriate price range. You can submit a confident offer when you find the right property.

Home buyers who write offers with a mortgage approval contingency, without showing any reasonable proof of financing ability, are not taken too seriously by home sellers.

When you are ready to begin your mortgage pre-approval, we can help! We will refer you to local, highly reputable mortgage lenders in Central Ohio, who will explain your financing options. When you become our Buyer-Client, we can also help you evaluate the mortgage offers you receive!

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