Metro Columbus real estate Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

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.

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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Best Home Improvements for Future Value in Columbus

RealSupport — Thu, 31 Dec 2020 13:31:14 +0000

Columbus home buyers often intend to make updates to their new property to improve its functionality, aesthetics and future resale value. However, very few home improvements provide a dollar-for-dollar return when it’s time to sell!

For this reason, buyers should avoiding purchasing a home that is too small or too outdated to serve their needs. It may be feasible to remodel your way to your dream home, but this could prove more expensive than what the property will be worth in the end.

Yet there are times when home improvements are desirable or necessary. Before you begin a project, you should understand the return on investment you can expect. For example, here are comparisons by the 2020 Cost vs. Value Report, produced by Hanley Wood Media, Inc. (Complete data from the Remodeling 2020 Cost vs. Value report can be downloaded free at www.costvsvalue.com.)

Best home improvement projects for return on investment in Columbus

Mid-range bathroom remodel: average job cost $20,643, average return = 81.7%, or $16,871.
Minor kitchen remodel: average job cost $22,602, average return = 80.4%, or $18,169.
Exterior wood deck addition: average cost $13,222, average return = 75.8% or $10,027.
Vinyl window replacements: average cost $17,346, average return = 75.1% or $13,029.
Roof replacement with asphalt shingles: average cost $23,999, average return = 72.9%, or $17,501.

In general, practical upgrades that improve functionality and protect your home are a better idea than following quick-changing trends. Contact us to find out what features remain timeless in the eyes of Columbus home buyers!

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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 Home Buyers, Prepare for Cautious Lenders

RealSupport — Mon, 02 Nov 2020 09:47:09 +0000

For the past 3 months, mortgage interest rates have been averaging below 3% for 30-year Conventional loans. But Columbus home buyers may find that lenders are feeling less generous these days, making any advertised, ultra-low rates difficult to obtain.

Even as rates have declined, lenders have been increasing their credit score requirements. The Mortgage Bankers Association reports that the Mortgage Credit Availability Index (MCAI) dropped by 6.1% in September, indicating that loan approvals are down. The median FICO score for mortgage approvals nationally is 700. In “hot” markets, the median FICO score on approved mortgages is over 750.

What’s going on? Simply put, lenders have enough applications for home purchases and refinances that they can afford to be picky. Another concern is the economy. So far, economic damage from COVID-19 has struck certain industries much harder than others; yet lenders fear the snowball effect that a prolonged pandemic could cause.

Still, you won’t necessarily be denied for a mortgage if your FICO score is below 700 and your down payment is less than 20%. But the interest rates you are offered may be higher than the “teaser rates” shown on lender websites.

To get the lowest possible mortgage rate in the Columbus area, you’ll need the best possible credit score and a strong financial picture! Being financially prepared with limited debt obligations, a considerable down payment and a solid work history helps.

It’s also a good idea to work with Columbus area lenders who know our market! We can refer you to local lenders who will work hard to get you the best options. And as our Buyer-Client, you will get our help in evaluating your mortgage offers, to compare not only rates, but also the fees and costs that are part of your overall financing.

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Columbus Home Inventory Stays Low

RealSupport — Mon, 02 Nov 2020 09:40:26 +0000

The perfect storm for Columbus home buyers continued in September 2020, as the trifecta of low interest rates, strong home demand and low home inventory continued to drive the market. According to data from Columbus REALTORS®, the inventory of Columbus homes for sale in September was down 48.9% compared to September 2019. All in all, it has been a challenging year for home buyers.

The amount of time homes are spending on the market continues to drop for price levels below $500,000. Homes priced above $500,000 spent a few more days on market than they did in August, but it is not a significant enough change to call it a new trend. Here’s a look at the market times:

Homes priced under $350,000 = 15 days on market
Home priced over $350,000 to $500,000 = 25 days in market
Homes priced over $500,000 to $700,000 = 56 days on market
Homes priced over $700,000: 78 days on market

The average Central Ohio home sale price during September was $277,832, an increase of 16.0% from September 2019.

Please remember that these statistics do not include home sales that were transacted outside of the MLS, such as For-Sale-by-Owner properties, or sales that occurred directly through home builders without the aid of a listing agent. Even so, this low-inventory market remains a persistent issue, and one that doesn’t have an immediate end in sight.

Meanwhile, Columbus home buyers need to be well-prepared and patient. Do not be tempted to throw all caution to the wind and abandon the contractual protections you should have as the home buyer! Too often, this is the advice of typical agents who are more concerned with the seller’s position than your own.

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Columbus Real Estate and the Central Ohio Economy

RealSupport — Mon, 05 Oct 2020 07:35:35 +0000

Columbus real estate has been on a tear in 2020, with higher home prices and faster sales. But as the pandemic drags on and the economy struggles, there’s some question about how long home sales can keep the pace.

The short answer: as long as home demand keeps outpacing supply, prices won’t be declining anytime soon. However, a sustained economic disruption could soften demand. Here’s a look at the Central Ohio economy as of August 2020, according to the U.S. Bureau of Labor Statistics:

Columbus area unemployment stood at 8.3%, just below the national average of 8.5%. Franklin County had the highest unemployment at 9.1%. Delaware County has the lowest at 6.1%.

The Central Ohio industries with the most job losses include:

Leisure and Hospitality services = 26.3% decline in employment
Other service-oriented industries = 15.5% decline in employment
Education and Health services = 7.9% decline in employment

The Central Ohio industries with the least job losses include:

Government = 1.3% decline in employment
Professional and business related services = 4.9% decline in employment
Manufacturing = 5.1% decline in employment

In the middle of the pack, financial services, information technology, and construction have employment declines between 6% and 7.6%.

It should be noted that these figures already represent some improvement from the state of the economy a few months ago. Still, the economy will need time to get back to the levels enjoyed prior to the pandemic.

So long as the Central Ohio economy continues its gradual recovery, and housing inventory remains limited while home demand remains strong, Columbus home buyers will continue to face a competitive market in the months ahead. However, it’s important not to overpay for a home in this environment! One should also avoid making an impulsive home purchase that will not suit your long-term needs.

Looking for home buying advice? 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 Home Sales Set Record High in August

RealSupport — Mon, 28 Sep 2020 11:41:03 +0000

Columbus home buyers faced a blistering market during August, as low mortgage rates fanned already-hot home demand to new sales highs. According to Columbus REALTORS®, the nearly 5% gain in sales volume on a year-over-year basis set a new record for August, with approximately 3,400 residential units sold.

Overall, the speed of August sales set the fastest pace for the entire summer. The only price range to slow down a notch was $700,000 and up, with these homes averaging 75 days on market. All other price ranges shortened their duration on the market.

Homes priced under $350,000 = 17 days on market
Home priced over $350,000 to $500,000 = 33 days in market
Homes priced over $500,000 to $700,000 = 52 days on market
Homes priced over $700,000: 75 days on market

Scant home inventory continues to pressure buyers and drive up prices. On a year-over-year basis, August 2020 home inventory was nearly half of what it was a year ago, coming in 47% less. On a month-to-month basis, August 2020 inventory was down 7% from July 2020.

Home prices continued their upward climb as a result. The average Central Ohio home sale price in August was $279,134, an increase of 12.8% from August 2019. In an unwelcome trend for buyers, average sales prices have exceeded the average list prices for two months in a row. Sellers are getting offers above their asking price in the most competitive markets.

Columbus home buyers should keep in mind that home prices might move faster than appraisal values. Making an above-price offer shouldn’t be done without considering the possibility of a low appraisal – and having an appropriate contingency in place for the situation. No matter how “hot” the market is, buyers always need certain contingencies to protect themselves! When you become our Buyer-Client, we will provide you with the best contractual protections while providing you with expert strategies for a successful offer.

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Central Ohio Homeowners are Happy to Stay Put

RealSupport — Mon, 14 Sep 2020 08:19:16 +0000

When it comes to putting down roots, homeowners in Central Ohio have carved out quite a niche. According to a 2020 study by SmartAsset, reported in Columbus Business First, Worthington homeowners have held their properties for an average of 24.8 years. The national average for home retention is 13 years.

Long-term home ownership is also found in Pickerington, where homeowners have stayed in their residences for an average of 23.7 years. Delaware homeowners have been sticking around for an average of 18 years.

These embedded homeowners are reaping the benefits of wise home purchases in the past. For example, Worthington residents are spending an average of just 18% of their income on home ownership costs.

Worthington’s low ratio of distressed property, home ownership length and home value appreciation earned it the title of “Most Stable Housing Market in Ohio” by SmartAsset.

Earlier this year, SmartAsset named Pickerington and Hilliard among the “Top 10 Housing Markets in Ohio” based on neighborhood stability, speed of home sales, and home prices relative to income.

While this is great news for Central Ohio homeowners, it’s also an example why Columbus area home buyers have limited inventory to choose from. Homeowners simply do not have much motivation to move. Many purchased their homes during a less expensive period, and have refinanced their mortgages as interest rates fell.

Still, opportunities can be found in the Central Ohio real estate market. Patient home buyers who work with an Exclusive Buyer’s Broker can access the widest possible array of homes for sale – including homes on the Columbus Regional MLS, new construction, and homes For Sale by Owner!

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 Homes See Higher Summer Prices, Faster Sales

RealSupport — Fri, 04 Sep 2020 07:11:54 +0000

Home sales in the Columbus Metro started out strong this spring and gained momentum through the summer. The latest home sale statistics from Columbus Realtors© show July 2020 transaction volumes up 6.1% over July 2019.

The unwavering demand for Central Ohio homes pushed price increases into the double digits. Average home prices in July increased 10.4% on a year-over-year basis, reaching $278,044. Calculated by median, home prices increased 11.4% year-over-year.

Despite higher prices, sales have been swift. Homes priced below $350,000 spent an average of 20 days on market. In the price range of $350,000 to $500,000, homes spent an average of 33 days on market. Back in May, these price ranges had days-on-market of 24 and 37, respectively.

While the Columbus Metro real estate market has been “hot” for some time, this summer brought a new first. During July, the average home sale price exceeded the average listing price. In other words, it became common for homes to sell for more than the asking price. This phenomenon was once was an exception, but it has practically become the norm.

Still, Columbus home buyers should not make blind decisions or rush judgments. Home inventory, while still constrained, is improving. And being the highest offer can mean offering $1,000 over the asking price, instead of $10,000. As our Buyer-Client, you’ll get expert home buying guidance to help you succeed, without breaking the bank!

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