home buyer tips Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Payments can Change on a Fixed-Rate Mortgage: Here’s What Ohio Home Buyers Should Know

RealSupport — Wed, 29 Apr 2026 05:10:28 +0000

Having a fixed-rate mortgage offers protection against future increases in mortgage interest rates. Specifically, a fixed-rate mortgage means that the principal and interest portion of your monthly payment will remain the same, though the allocation between them will adjust as the loan matures. (You can see how this works on mortgage calculators, as found on Bankrate and other financial websites.)

But this doesn’t mean your overall monthly payment can’t go up. If you have an FHA, VA or USDA mortgage, an escrow account for the payment of property taxes and homeowner’s insurance is required. If your property tax bill goes up, and/or your homeowner’s insurance premium rises, the escrow portion of your monthly mortgage payment will increase. If these expenses rise year-over-year, the escrow portion of your mortgage payment will be rising to catch up.

Ohio homebuyers and homeowners need to know that escrow accounts can also require a “reserve.” Mortgage servicers are allowed by law to hold 2 months worth of escrow deposits as a cushion against future increases in taxes and insurance. However, since the 2-month reserve also has to be maintained, increases in taxes and insurance can mean 14-months worth of escrow deposit catch-up.

For example: If you have annual property taxes of $4,800 and an annual homeowner’s insurance premium of $950, These two items would total $5,750 per year. Your monthly escrow would be based on $5,750 divided by 12 months = $479.16 per month. This $479.16 would be added to your principal and interest payment, to create your total monthly mortgage payment.

But if your tax bill comes in at $5,100 and your insurance premium changed to $1,200, your mortgage servicer will pay these bills anyway – but then collect the difference from you. This is a one-two punch, because they need to make up the shortfall for the current year, and collect at least these amounts for next year. Also, if there is an escrow reserve, it needs to be increased to match the new monthly deposits.

It would look something like this:

Taxes: $4,800 collected, $5,100 paid = $300 shortage

Insurance: $950 collected, $1,200 paid = $250 shortage

New escrow payment:

Total annual tax and insurance payments: $6,300 per year = $525.00 new monthly escrow deposit

Total shortage $550. Divided by 12 = $45.83 per month shortage recovery

Total new monthly escrow payment $570.83.

If an escrow reserve is held, your servicer will also collect 2 months of the difference between the old escrow deposit ($479.16) and your new base escrow deposit ($525.00), which is $45.84.

So, $45.84 x 2 = $91.68. This would be divided by 12, to collect over 12 months with the rest of the escrow deposits, becoming another $7.64 on your monthly escrow payment. The grand total for your monthly escrow deposit would now be $578.43.

As an option, you can elect to pay off an escrow shortage in a lump sum, rather than have it prorated over a 12-month period.

Mortgage servicers analyze, or reconcile, your escrow account each year. Escrow overages can happen too, and if your tax and insurance payments come in lower than expected, you may receive an escrow refund for the difference.

Always check your mortgage statements, and watch your tax and insurance bills, too! If you have questions about the handling of your escrow account, reach out to your servicer promptly.

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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Finding a Starter Home in Central Ohio: Tips for First-Time Home Buyers

RealSupport — Sun, 30 Nov 2025 22:57:13 +0000

Starter homes are an entry point in the market for first-time home buyers. The ideal Central Ohio starter home should be affordable, practical, well-built, well-maintained, and be located in an area with access to public amenities and daily necessities. When you choose your starter home wisely, it should appreciate in value over time. This helps you build equity, and gives you the chance to “trade up” to a larger or newer home in the future!

Starter homes are being rediscovered by today’s first-time buyers, after years of buyers purchasing large, newer homes right out of the gate. But the days of 3% interest rates are over, and years of rising home prices have put starter homes back in discussion. Here are tips for finding a good starter home in Central Ohio!

Look for a home that is:

Smaller in size (often 2–3 bedrooms)

Priced lower than the broader market average

Located in an established, stable neighborhood with local amenities – grocery stores, medical services, parks, good schools, etc.

Located on a street that is not too busy or noisy

Older, but well-built and maintained. No problems with the foundation, mechanical systems, etc. Be sure to write your offer with home inspection contingencies, and if condition issues are found, call in a contractor for estimates. How you write your offer is extremely important; see our free e-book, “How to Buy a Home like a Pro,” for examples!

Needs some updating, but doesn’t require immediate, big-ticket repairs. This is in the eye of the beholder. If you are willing to replace the roof, or install new windows, consider your budget and the return on investment when looking at a diamond in the rough. (Make sure it’s a diamond, first!)

Note: lead-based paint wasn’t abolished until about 1978. Homes that were built before 1978 may contain lead-based paint, and the older the home is, the more likely it has it. Lead plumbing pipes are also a concern. When you are considering an unrenovated, pre-1980 home, use contingencies to cover any specific testing or specialized inspections.

This is a broad guideline. For expert guidance and unbiased home buying advice, turn to an Exclusive Buyer’s Broker! 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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Exclusive Buyer Brokers put Home Buyers First!

RealSupport — Wed, 10 Sep 2025 14:25:20 +0000

No matter where you live in Central Ohio, you see marketing by local real estate agents. Typically, these agents work for home sellers, but they advertise “services” to home buyers in the same breath. Home buyers seldom realize that when they use an agent who represents both buyers and sellers, they are placing themselves at a serious disadvantage.

Most real estate brokerages practice “dual agency,” meaning they are transaction focused. When an agent works for a brokerage that has listings to sell, their #1 job is to sell those listings – for the highest possible price! As a home buyer, your objective is to purchase a home for the lowest possible price. These conflicting goals create agents who are transaction facilitators. By the nature of dual agency, they are unable to provide specific advice to buyers that could compromise the seller’s interests.

Yet this same type of agent can pass along information about the buyer to the home seller, which weakens the buyer’s negotiating power. And because traditional agents are motivated to sell their own brokerage’s listings, you may have less exposure to other properties on the market. You could also end up overpaying for a home, and/or buying a home that isn’t a good fit for your needs.

There is such a significant difference between traditional agents and Exclusive Buyer Brokers and Agents that we wrote an e-book about it: “How to Buy a Home Like a Pro.” You can download it free from our website, without any obligation. It provides expert home buying insights that you won’t find anywhere else!

In the meantime, here’s a quick way to understand what makes Exclusive Buyer Brokers different: we provide a fiduciary level of service to home buyers, 100% of the time, with no conflict of interests. We never represent sellers or accept listings. We focus exclusively on your needs as the home buyer, getting you the best possible price and terms.

We can also show you any home on the market – including For Sale by Owner (FSBO) or for sale by home builder, or for sale by an agency through the Columbus Regional Multiple Listing Service. Since we do not hold listings of our own, we have no vested interest in any particular home on the market.

We also help you evaluate your mortgage offers, helping you find the best financing for your needs. And when you tour homes with us, we will give you honest, objective advice about the price and quality of the home. When you’re ready to make an offer, we will walk you through the contractual language and the protections we provide.

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

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Real Estate Investors Love Columbus Homes

RealSupport — Wed, 09 Jul 2025 08:39:51 +0000

Institutional real estate investors currently own about 7,000 Columbus area homes. As reported previously in the Columbus Dispatch, approximately 7% of all homes sold during the first quarter of 2025 were purchased by investors.

To understand how we’ve arrived at Wall Street ownership of single-family homes, we must recall the Great Recession of 2007-2009 and its aftermath. An estimated 9 million U.S. homes went into foreclosure, creating a backlog of bank-owned real estate. These properties were usually in poor condition. The longer they stood vacant, the more they lost value. It was detrimental to the banks – and to the communities where these homes were located.

To solve the problem, banks welcomed institutional investors. Instead of selling homes one and two at a time, banks sold properties by the dozens, or even the hundreds, to investment companies who purchased them sight-unseen. It was a win-win; banks cut their losses quickly, and investors found profit in repairing, renting and reselling the foreclosed homes.

It worked so well for investors that single-family home acquisitions became a permanent business strategy. Today, the Columbus area remains a sweet spot for institutional investors, who purchased over 600 homes in a recent 3-month period.

Columbus home buyers will be competing with investors for the foreseeable future. The good news: a well-written, well-presented offer can still beat an investor’s cash offer. Investors seek to purchase homes using below-market offers, with a “fast closing” as the incentive to sellers. Not every seller finds this trade-off acceptable. Those who do may have homes requiring significant repairs.

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Home Buyers are Waiting Longer as Home Affordability Falls

RealSupport — Wed, 18 Jun 2025 05:20:16 +0000

If you’re a home buyer in your late 30’s or more, you’re in good company. According to the National Association of REALTORS© Profile of Home Buyers and Sellers, the median age of a first-time home buyer in 2024 was 38. As recently as 2023, the median age of a first-time buyer was 35. Back in 2015, the median age of a first-time buyer was 31.

First-time buyers also hold a shrinking share of the real estate market. During 2024, first-time home buyers accounted for 24% of all home purchases. This is the lowest percentage of market share since NAR began tracking this data in 1981.

On the other hand, repeat home buyers aren’t getting any younger. The median age of a repeat buyer was 61 in 2024. In 2023, the median age of a repeat buyer was 58.

The aging of home buyers isn’t a surprise to economists. Home prices have been rising since the end of the Great Recession, but they spiked after the pandemic. The median sales price of a U.S. home was $317,100 during the 2^nd quarter of 2020. By the 2^nd quarter of 2022, the median sales price of a U.S. home was $437,700.

According to the NAR survey, last year’s buyers had to save money for a longer period of time before entering the market. About 57% of buyers reported using personal savings to help finance their home purchase. Only 12% of buyers relied on cash gifts or loans from family to facilitate their home purchase.

In a certain sense, the housing market hasn’t been “balanced” in decades. Residential single-family homes, for better or worse, are now a Wall Street asset class, with investors holding thousands of homes as rentals. And years before the Great Recession’s housing bust, the real estate market was juiced by easy-money mortgages, which created speculative home buying and speculative home building.

One would have to return to the 1990’s to get an idea of how a balanced real estate market used to behave, when home inventory stood around 6 months of supply, and mortgage interest rates were between 7% and 9%. The U.S. median home price in 1995 was $114,600. It was a very different market, but it wasn’t a rose garden for home buyers. The Internet was in its cradle days, without the buyer resources that are now commonplace online. Listing agents controlled real estate market information, and buyers were at a serious disadvantage.

In short, what a “normal” real estate market used to be, may look very different from the normal market of the future! The best advantage you can give yourself as a home buyer is the representation of an Exclusive Buyer’s Broker. We explain how we save you money and protect your best interests in our free e-book, “How to Buy a Home like a Pro!” You can download it today without any cost or obligation by visiting our website.

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Columbus Falls from “Hottest” Market List

RealSupport — Wed, 04 Jun 2025 05:33:29 +0000

The Columbus real estate market is no longer in the “hottest” market category, according to the Spring 2025 Wall Street Journal/Realtor.com Housing Market Ranking. Columbus fell out of the top 20 hottest markets during Spring 2025, falling to #28. However, other Ohio markets made the top 20, including Toledo, Canton-Massillon, Akron and Dayton.

The ranking weighed home affordability in the data, and this is where Columbus lost statistical ground. The average sale price of a Columbus home was $369,625 during March 2025, an increase of 3.9% from March 2024.

Meanwhile, markets like Toledo, Akron and Dayton had average sale prices in the range of $225,000 to $250,000. Listings in these price ranges drew a high number of online views, with about 43% percent of those views originating from outside of Ohio.

In other words, rising home prices in Columbus have caused some buyers to browse less expensive Ohio markets. This isn’t a bad thing, as it potentially reduces buyer competition in the Columbus area.

By the numbers, Central Ohio home inventory increased by 45% during April 2025, compared to April 2024. The improvement in home inventory is a welcome change for home buyers! Yet homes are selling quickly, spending just 32 days on market before going under contract. Buyers are still feeling pressure in Central Ohio, and being prepared for the market is a must. We can help!

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Boomers Are Top Home Buyers in Latest NAR Study

RealSupport — Thu, 17 Apr 2025 09:34:30 +0000

The Boomer generation remains very active in the housing market, taking over the top home buyer spot from Millennials. According to the latest generational trends report from the National Association of REALTORS©, Baby Boomers accounted for 42% of all home purchases from June 2023 through June 2024. Millennials made 29% of all home purchases, and Gen X buyers outpaced Gen Z for the remainder.

Millennials represent the largest demographic in the U.S. by population, but the Boomer generation has an advantage in the market. Namely, cash! While higher mortgage interest rates and rising home prices curtailed the purchase power of younger generations, homeowner Boomers were able to sell their properties and benefit from years of value appreciation. In turn, many Boomers were able to purchase their new homes with all-cash offers.

It’s no surprise, then, that 53% of all home sellers during the same year-over-year period were Boomers. According to the NAR survey, most Boomers moved to be closer to family, or to downsize.

Here in the Columbus area, Millennial and Gen Z home buyers have more affordable conditions than other major metropolitan areas. About 51% of Millennial residents in the Columbus Metro are homeowners, according to a report by AXIOS. About 41% of Gen Z residents own homes. Buyers who are financially prepared, and educated about the market, can find opportunities in Columbus!

Get expert home buying strategies and insights with our free e-book, “How to Buy a Home like a Pro!” It’s yours immediately without any obligation, and the download is right from our own website.

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 interests.

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Home Sales Update for Central Ohio Buyers

RealSupport — Fri, 24 Jan 2025 07:54:03 +0000

December 2024 was a busy month for Central Ohio home buyers, who closed 2,169 home purchases during the month. Overall, 2024 was another strong year for Central Ohio real estate, with home purchase activity up 4.2%. Central Ohio communities with the strongest sales activity included the South-Western City School District, Grove City, and Marysville.

Central Ohio home inventory improved during 2024, but the uptick in available homes was met with robust buyer demand. Consequently, home prices increased 8.5% on a year-over-year basis, reaching a median sales price of $320,000.

There are a couple of bright spots for Central Ohio home buyers in the statistics:

Homes are taking a few days longer to sell.
Sellers are getting about 98.5% of their asking price, on average, meaning that sellers are willing to negotiate to some degree.

Based on 2024’s year-end data, home buyers in Central Ohio may see these trends in 2025:

1. More listings. These are expected from pent-up sellers who are ready to capitalize on their equity, and from new construction projects that are slated to be completed during 2025. However, home demand will still outpace supply, assuming stable economic conditions.

2. Increased home prices. Until home inventory matches, or exceeds, home demand, prices are still going up. But continued improvement in home inventory will keep prices from overheating.

3. More flexibility from home sellers. An improvement in home inventory, coupled with homes spending more time on the market, will motivate home sellers to consider reasonable offers, rather than expect bidding wars.

4. Variable market conditions from one community to another. Trendy neighborhoods and newer homes are likely to see faster sales, and firmer prices.

All real estate is local, and home buyers should work closely with an Exclusive Buyer’s Broker to obtain the best possible value for their home buying budget!

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Mortgage Pre-Approval Tips for Columbus Home Buyers

RealSupport — Sun, 01 Dec 2024 10:07:41 +0000

Having a mortgage pre-approval in hand is the best way to be taken seriously as a Columbus home buyer! Obtaining a mortgage pre-approval goes smoothly when you prepare in advance. Here are several tips from Buyer’s Resource Realty Services!

Get a free copy of your credit history from annualcreditreport.com. This will not show your credit score, but it will show all of your credit accounts and payment histories. It also contains information about your address history and other identifiers. If there are errors in any of this data, contact the bureau supplying the report, and request corrections. Allow 30 days for updates, then re-check your history.

See your credit score at MyFico.com. A “good” FICO score is in the eye of the beholder, but generally you’ll get the best mortgage offers with a score of 740 and above. Scores of 680 and above are good. A score in the mid-600’s to high 500’s can mean an expensive mortgage – or a denied application. Much depends on the type of mortgage and the lender involved. Fortunately, the MyFico site includes an Education tab with tips on improving your credit score! On-time payments and low debt balances are key.

Put a financial file together. Gather your employment information, recent pay stubs, last 2 years of tax returns, recent bank statements and investment account statements. List your monthly debt obligations too. Having this information ready, and keeping it updated, will save you time and hassle when you begin your mortgage application.

Start, or improve, your down payment savings. Consider using direct deposit to automate your savings plan. Set up a monthly budget for routine expenses, and look for ways you can save on costs. Getting in good financial habits now will help you manage the costs of home ownership!

Get an Exclusive Buyer’s Broker on your side! We can refer you to expert mortgage lenders in the Columbus area. When you become our Buyer-Client, we can review your mortgage offers, and help you find the ideal financing for your needs.

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How to Avoid Fraud During Your Columbus Area Home Purchase

RealSupport — Tue, 15 Oct 2024 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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