Exclusive Buyer's Agent Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Columbus Home Sales Wrapped 2023 on Strong Note

RealSupport — Thu, 25 Jan 2024 08:20:47 +0000

Columbus area home buyers persevered against higher interest rates, inflation and rising home prices during 2023. According to the year-end figures by Columbus REALTORS©, the median sales price of a Columbus area home was $295,000 during December 2023, marking a 7.3% price increase compared to the December 2022.

When measured over a 12-month period of sales activity, the 2023 median home price in the Columbus Metro was $302,000, representing a 4.1% increase in prices compared to the 12-month period of 2022.

Sales price gains were particularly strong in communities like Pickerington, which saw a December median sales price of $449,900. This is an eye-popping increase of 45% over December 2022. The nearby village of Obetz saw a 33.8% increase in year-over-year home sale prices, with a median price of $356,425 recorded in December.

There is a bit of good news for Columbus home buyers. While the median sales price increased in our area, the speed of home price increases slowed down during 2023. By December, homes were spending an average of 30 days on the market. This isn’t exactly a “slow” market, but it held more breathing room than the summer months, when homes spent about 17 days on market.

Inventory remains a challenge for home buyers, but there was some improvement. The current supply of homes for sale stands at 1.4 months, which is a 27% increase from where things stood a year ago. However, new listings in December 2023 were down about 1% from December last year. Overall home inventory remains well below normal.

Looking ahead, inflation pressures and mortgage interest rates are expected to soften during 2024. There is some hope that pent-up sellers will bring more properties to market this year. Meanwhile, a measurable decline in mortgage interest rates is likely to bring more buyers to the market, meaning that home prices will continue to push higher.

As a home buyer, you need to do all you can to level the playing field! Start with our free e-book, 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.

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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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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Ohio Sees Drop in Home Building Permits

RealSupport — Sat, 04 Nov 2023 05:51:04 +0000

Columbus home buyers have been dealing with below-normal home inventory for several years. Homeowners have been affected by low inventory as well, having little to choose from if they were to sell their current home. More recently, rising interest rates have made homeowners reluctant to sell and give up the low-rate mortgages they currently enjoy.

This leaves new construction as the best hope for improving Central Ohio’s home inventory. Unfortunately, home builder confidence took a hit as quick-rising rates impacted buyers and raised financing costs for builders themselves.

This is evidenced in the decline of single-family home building permit activity in Ohio. Data released by the National Association of Home Builders shows a 14% drop in Columbus home building permits year-to-date as of August 2023, compared to the same period a year ago.

Most of Ohio saw a reduction in single-family home building permits. Dayton Ohio permits fell 21%. Cincinnati permits fell 18%. Canton permits fell 17%, Cleveland fell 16%, and so on. The only area to see an increase in building permits was Toledo, which lined up 143 more permits this year compared to last year. Overall, Ohio has seen a double-digit decline in building permit activity statewide for 2023.

The National Association of Home Builders has been vocal about the impact of interest rate hikes on the industry. In a joint letter issued with the Mortgage Bankers Association and the National Association of REALTORS© to Chairman Powell on October 9, there is an excellent point: increases in housing costs are a leading source of inflation. Higher interest rates make housing costs more expensive and worsen the problem. This is a very simplified summary: you can read the exact wording at this link.

While the trade associations have found some sympathy among the Federal Reserve Board of Governors, many economists expect that interest rates may rise a bit further before leveling off. There is an expectation that rates may stay elevated well through 2024, unless an economic disruption forces the Fed to pivot.

In the meantime, waiting for lower rates, more home inventory, or an “easier” real estate market may not be realistic for Columbus home buyers. You cannot predict the future. But you can find opportunities today with the help of an Exclusive Buyer’s Broker!

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$7.8B Amazon Expansion Boosts Columbus Area Tech Boom

RealSupport — Wed, 05 Jul 2023 21:38:26 +0000

A number of major technology companies operate in the Columbus area, and the tech boom continues with Amazon’s latest announcement. The Columbus Dispatch reports that Amazon will invest $7.8 billion dollars to expand its data operations in Central Ohio. Here are the highlights, along with our thoughts and what it means for home buyers!

Amazon plans to build several new data centers in Central Ohio during the next six years. The locations are still in discussion. Amazon already owns 400 vacant acres near the Intel site in New Albany, and operates existing data centers in New Albany, Hilliard and Dublin. Amazon runs numerous warehouses and distribution centers in Ohio, in addition to solar and wind farms. All told, Amazon employs about 37,000 people in The Buckeye State.

New data centers will bring more jobs to Central Ohio. While Amazon does not disclose the number of employees in a data center, the U.S. Chamber of Commerce estimates that a typical data center has about 157 full-time employees. During the construction process, the project can employ about 1,688 people. A completed data center can add about $8 million in wages per year, and during the development phase, account for $777 million in annual wages, and contribute $234 million annually to the local area.

With Amazon, Google, Microsoft, Intel and Facebook in Central Ohio, good-paying, local jobs are accessible to OSU graduates and other residents. This academic and business synergy supports population growth and economic expansion. For home buyers, it also means that home demand is going to be high for the foreseeable future. This will keep prices rising, until home supply catches up…if it can! Working with an Exclusive Buyer’s Broker will give you the best opportunity to find, and purchase, a quality home at the right price.

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Columbus Area Home Prices Up 38% Since 2019

RealSupport — Tue, 23 May 2023 02:04:01 +0000

The price of a single-family home in the Columbus area has jumped 38% over the past four years, according to ATTOM data reported by Columbus Business First. Positive home price growth has stuck with Columbus for over a decade – and prices still have room to run!

This may come as a surprise to home buyers who expected a decline in Columbus home prices, due to higher interest rates, a softening national economy, or other market headwinds. But as detailed in our recent blogs, Central Ohio’s robust housing demand is supported by multiple fronts, including investor purchases, regional job growth, population growth and attractive amenities. It may take years for new home construction to catch up.

Meanwhile, current home owners who have low-rate mortgages have little incentive to pull up stakes and start over, given today’s higher home prices and interest rates.

Yet there are home owners capitalizing on their equity and selling for a profit. ATTOM sales data for the first quarter of 2023 shows that Columbus sellers held their property for an average of just 5.62 years. Since about 21% of all home purchases in Central Ohio this year have been all-cash deals, its likey some of those profits are being reinvested locally.

Is this a tough market for home buyers? Yes. But with expert information and guidance from an Exclusive Buyer’s Broker, you’ll be ready to succeed! You can learn home buying strategies right now with our free e-book, “How to Buy a Home like a Pro!”

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5 Reasons Why Columbus Home Buyers Should Stay in the Market

RealSupport — Tue, 04 Dec 2018 00:27:17 +0000

Baby, it’s cold outside! But don’t let the weather delay your Columbus home search! Winter can be an advantageous for home buyers, because there is less competition for desirable homes, and sellers are motivated. Here are 5 more reasons why Columbus home buyers should stay in the market this winter!

1. Central Ohio home inventory has improved. During October 2018, about 3,059 homes were added to the Columbus Regional Multiple Listing Service. Overall home inventories are up 5.3% compared to the same month a year ago. Keep in mind that these figures do not include homes For Sale by Owner, or new construction for sale by home builders. Remember, we can show you any home on the market, by any seller!

2. Homes are spending more time on the market. As of October 2018, Columbus area homes spent about 14% longer on the market than they did a year ago. The pace of the market remains brisk for entry-level homes, but it isn’t the frenzy of spring and summer.

3. Home sellers are negotiating. In reaction to rising inventories this fall, more home sellers have been willing to negotiate price. About 44.43% of sellers reduced their asking prices during the month of October.

4. Industry professionals are less harried. The seasonal dip in buyer activity typically frees up mortgage lenders, home inspectors, appraisers, contractors and title companies. This means a shorter timeframe to expedite your home purchase.

5. Buying now is likely cheaper than buying later. While some industry analysts expect home price growth to slow during 2019, this doesn’t mean Columbus home prices will go into reverse. In recent years, the Columbus real estate market has been strong in the early months of the New Year, resulting in higher year-over-year home prices. This is especially true for affordable homes in popular Central Ohio neighborhoods.

As we said in a prior blog post, we’re not yet seeing a “buyer’s market” in Central Ohio. Still, the final weeks of 2018 could be the most attractive market conditions buyers have seen all year.

You can have a home buying advantage in any market by working with an Exclusive Buyer Broker! 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.

Andrew Show
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 Strategies for Columbus Home Buyers

RealSupport — Sat, 24 Nov 2018 07:39:43 +0000

Making wise mortgage decisions can save you money as a Columbus home buyer! While you can’t control the direction of interest rates, you can put yourself in a position to receive the best possible mortgage offers. Here are mortgage tips and strategies every home buyer should know!

Strengthen your credit. Your credit score, loan-to-value ratio, and debt-to-income ratio are all considered by the lender. It’s easiest to look at it this way:

The higher your credit score, the better.
The larger your down payment, the better.
The lower your monthly debt payments, the better.

The lowest interest rates are awarded to borrowers who have the very best credit, and the lowest risk profile. Mortgage underwriting is complicated, and involves more than the items above – but this gives you a good start!

Pay attention to rates. Each week, Freddie Mac publishes the Primary Mortgage Market Survey (PMMS), which shows the national average for mortgage interest rates. This snapshot includes three main mortgage types. It includes the average points, if any, lenders are charging to issue those rates. As of November 21, 2018, the PMMS looked like this:

30-year fixed-rate mortgage = 4.81% with 0.4 points

15-year fixed-rate mortgage = 4.24% with 0.5 points

5/1 adjustable-rate mortgage = 4.09% with 0.3 points

These rates are subject to change daily, and are for example purposes only.

Consider your mortgage loan options. While the 30-year, fixed-rate mortgage is popular, you’ll enjoy a lower rate, and pay less interest overall with a 15-year mortgage. Keep in mind, the shorter term will mean a larger monthly payment.

You can consider adjustable-rate mortgages, which offer low introductory rates. In the example above, the 5/1 ARM means your interest rate stays the same for the first five years. Afterwards, it will adjust every year for the remainder of the mortgage.

Do the math on mortgage points. A point equals one percent of the principal amount borrowed. When you pay points, you’re basically paying interest in advance. In return for this up-front money, the lender grants you a somewhat lower mortgage rate. As you saw in our PMMS rate examples above, points may be shown in any fractional amount.

Points are paid at closing with other out-of-pocket costs. If you wish, you can opt to “roll” your points into the mortgage loan with other closing costs. Remember that paying points at all is completely optional!

Lock the rate. A rate lock means your lender promises to honor the offered rate for a specific amount of time. This protects you from the daily changes in rates that happen in the financial markets. Generally, the rate lock gives you enough time to get through the closing process.

When you’re happy with the mortgage offer, and you don’t want to gamble with the future rate environment, lock it in! But if you think rates might be heading lower, you can opt to wait a bit, or try shopping rates with another lender. (Remember, your personal creditworthiness plays a large role in the rates you’ll be offered.)

Educate yourself! Our free e-book explains these matters in detail! Obtain your copy of “How to Buy a Home like a Pro” by clicking here. There’s no charge, no obligation, and we never share your email address with anyone else.

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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Is the Market Turning for Columbus Home Buyers?

RealSupport — Wed, 21 Nov 2018 04:34:02 +0000

The inventory of Columbus homes for sale nudged higher as of September 2018, increasing 2.6% from a year ago. During September, Columbus home sales also dropped by –11.4%. Given these indicators of increased supply and softening demand, one might expect home prices to lose some air.

Nope! Columbus home prices increased 9.8% in September, reaching an average sales price of $232,228. (These statistics do not include sales occurring outside of the Columbus Regional Multiple Listing Service, such as homes for sale by owner, or new homes sold directly by home builders.)

A similar trend has played out nationwide. Some media outlets have signaled that a shift to a “buyer’s market” has begun. Such projections might be ahead of themselves. Home supply has yet to significantly improve, particularly in entry-level price ranges where home demand is the strongest.

Still, home buyers had valid reasons to come up for air in September. Mortgage interest rates began to climb in earnest. Uncertainties seeped into buyer confidence as home prices gained altitude and affordability declined. Some buyers have been sidelined as a result.

If home inventories keep rising, home sellers may become more conservative in their asking prices. But thanks to a robust local economy and solid job market, this would probably translate into slower home price growth, rather than an abrupt pullback in prices. Meanwhile, seasonal price adjustments by motivated sellers shouldn’t be taken out of context.

Columbus home buyers need to remain well-prepared and well-represented! Being a Buyer-Client of an Exclusive Buyer Broker gives you representation when looking at any home on the market! This includes homes for-sale-by-owner, new construction and homes offered through the Columbus Regional MLS. We’ll also provide you with market comparisons and other insights to protect you from over-paying for a home!

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Columbus Home Buyers Should Prepare for Higher Interest Rates

RealSupport — Sun, 07 Oct 2018 08:30:37 +0000

The Federal Reserve increased its benchmark lending rate by .025 in September, the third such increase so far in 2018. Analysts predict another possible rate hike in December. What does it mean for Columbus home buyers?

Most notably, mortgage interest rates are rising. As of September 27, the average interest rate on a new, 30-year fixed-rate mortgage was 4.72%. About a year ago, the average rate on this mortgage was 3.83%. While the difference is slightly less than 1%, it has an impact.

For example, a $300,000 mortgage at 3.83% would give you a principal and interest payment of $1,403 a month. If you made this monthly payment each year for the full 30-year loan term, you’d repay a total of $505,080. ($300,000 to principal, with total interest paid of $205,080.)

Borrowing $300,000 with a rate of 4.72% gives you a principal and interest payment of $1,560 a month. The higher interest rate costs you $157 more per month! Over the life of the mortgage, your total repayment would be $561,428, meaning you’d pay $56,348 more in interest.

On another front, higher mortgage rates mean that debt-to-income ratios can be harder to meet. During the mortgage underwriting process, your gross monthly income is compared to all of your monthly debt payments – student loans, credit cards, car payments, ect. This is known as “front-end” DTI. Next, the lender adds your projected mortgage payment into the mix, for the “back-end” DTI.

In the most generous underwriting criteria, your back-end DTI cannot exceed 50% of your gross monthly income. Naturally, the higher the mortgage interest rate, the higher your DTI will be.

But when interest rates are rising, a variety of consumer debts also see higher rates and higher monthly payments. If you are carrying any credit card balances, student loan debts or other loans with variable-rate interest, you’re likely to be paying more for them. When these monthly payments rise, it affects your DTI – not to mention your wallet!

If you’re unsure of the rate and terms on your current debts, now is the time to examine them and create strategies for paying them down. Reducing your variable-rate consumer debt will save you money, and put you in better shape for mortgage approval!

Andrew Show
Broker, CEBA-M, CNE, 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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Home Buyers Should Be Prepared for Lender Questions

RealSupport — Mon, 27 Aug 2018 20:08:38 +0000

Home buyers should be prepared for follow-up questions from their mortgage lender, according to a recent article by the Wall Street Journal. It is increasingly common for lenders to require a “letter of explanation” to address questions that arise during the mortgage underwriting process.

Despite good credit quality and a strong housing recovery, lenders are still skittish. No bank wants to be holding the bag if a loan goes sour. So, while your loan officer cheerfully accepts your mortgage application, the underwriting process is basically designed to find holes in your financial picture.

Complicating matters is the fact that mortgage underwriting today is vastly automated. Algorithms can essentially decide if your mortgage will be approved or denied, but any grey areas are flagged and sent to a human for review. Here are just some of the areas that can cause questions from your lender:

Gaps in employment history
Adverse information in credit history or public records
Home purchase distant from current workplace
Unusually large bank withdrawals or deposits
Frequent change of address
Discrepancies in application data versus verification results

Lenders understand that there is often a reasonable explanation for most issues. But because they must evaluate risk and prove your creditworthiness, they may ask for a written explanation from you. Don’t see this as an imposition! Refusing to cooperate could result in your mortgage application being denied. That loan denial, in turn, may show up on your credit report – which won’t help your future loan prospects.

If you are asked to provide a letter of explanation, be honest and concise in your written reply. Stick to the question at hand, and do not delve into unnecessary detail or get too creative with your answer. Certain areas of questioning are prohibited; refer to this website by the Federal Trade Commission for more information.

When you are ready to apply for a mortgage, we’ll be happy to refer you to local, reputable lenders in Central Ohio! The experienced lenders we recommend will explain your mortgage options, and help you prepare for the underwriting process. Good preparation at the start can reduce the likelihood of underwriting snags.

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