Columbus and Central Ohio Home Sales 2007

April 18th, 2008 Columbus Buyer Info, Columbus Seller Info, The Bad, The Good Jason No Comments

Heres the Good:
We had 24,445 homes sold for the year.
Interest rates were low all year (and remain low).
The average sold price was $172,531.00.
New listings for the year were 49,961. That means 49% of the new listings sold.

Now, lets look at the year 2005 the high point of sold homes, highest average sold price, etc. That year there were 50,086 new listings, and 27,493 homes sold. So, 55% of the new listings sold.

Now these figures dont allow for the existing listings coming into each year.. but folks, stop and take a look at these numbers. If you buy into the pervasive media doom and gloom, you believe that nothing is selling and nothing is working. Thats just NOT true in our area of the country. We had over 24,000 sales last year! Remember, Columbus has been described as the 3rd most stable market in the country. Our property values have been considered as undervalued compared to pricing of homes across the country, and our employment remains stable.

Heres a few stats for the Negative Nellys:
The average sold price was 1.2% lower than 2006 ($172,531 compared to $174,688).
The credit challenged had their lending sources dry up.
There was a lot more competition (as in many homes) in the market challenging for seller who had to reduce their pricing to compete, fabulous for buyers who had a lot to choose from.

Home Staging - Why Should I Do It?

February 2nd, 2008 Columbus Seller Info, The Good No Comments

Buyers are making their decisions on which homes to personally go and see by looking at home photos online.

As a Realtor, Ive heard buyers consistently say €œIf there arent any interior photos of the home, I just browse past it there must be something terribly wrong inside if they cant post a picture.€

Ive also heard home buyers say they have eliminated a home because €œThere was too much clutter and it looked dated.€

Now a home seller may respond to this with €œWha-a-a-t?!? Hey, my house works fine for me and if you want to change the mauve carpet go ahead and do so; Ive priced it accordingly. As far as clutter goes those family photos and knick knacks are mine and I love them get over it! You can decorate the way you want when you move in€

Theres a big problem, though.. people are people, and you (Mr. Home Seller) are being passed over in the most important marketing arena buyers are using the Internet. Thats going to affect your sale, and your sales price.

Home Stagers are professionals who know how to make your home look good to prospective buyers. Their services are becoming increasingly important to the seller because paying a little up front is going to bring you more money when you sell.

At times, a home stager is going to un-do what you did when you decorated something potentially maddening to a homeowner. Decorating is personalizing; a home stagers goal is to de-personalize your home, so the buyer can see themselves in it.

There are some basic goals for a sale-ready home: De-clutter, de-personalize, clean, and update as much as you can. Heres an important point: We live in our homes very differently than when we sell our homes. As one home stager told me: €œWhen you feel like its not your home anymore, then Im doing my job well. At every point think is this what I would see in a model new-build home? If its not, then make it that way.€

(Home owners right now are feeling their blood pressure rise with those last statements after all, you live in and love your home. Remember if you can make more money, you can put that same love in your new home and thats where you want to go!)

The de-clutter, de-personalize, and clean parts of making a home ready is low-cost and mostly sweat equity. The update portion of preparing a home is where the dollars can add up. All the more reason to get advice from a professional who can suggest where youll get the most bang for your buck. Now some home stagers can go a little crazy here, suggesting things that are going to cost thousands of dollars. Remember that home stagers know what sells homes and talk to them and your Realtor about the return on investment. At times its worth every penny and more.

How to find a good home stager? Ask your Realtor we interact with them on a daily basis. Google home staging or home stager in your area. For an additional list of tips for the do-it-yourselfers, click here.

Columbus Ohio Real Estate and Economy 2007 Update- End of Year

December 13th, 2007 Columbus Buyer Info, Columbus Seller Info, Columbus and Central Ohio Home Sales Stats, The Bad, The Good No Comments

We’ve all heard the hubbub in the news about urgent housing issues… so how is the market really doing here in Central Ohio? Here’s a few points to help get a perspective:

Columbus’ unemployment rates are the lowest in the state, sitting at 4.7% at the end of October.

Statewide, Ohio has one foreclosure for every 290 households.  That means 289 homes have stable, healthy mortgages.

The new home construction market is struggling.  Housing starts are 50% less in Columbus since 2003.

We are having one of the best Buyer’s Markets that we will see for a long time.  That’s fabulous news for buyers, frustrating news for sellers. (Sondra note: I’m telling sellers that traditionally the thought has been to make your money selling your home; but in this market, the money to be made is on the buying end.  Do what you need to do to get your home sold, and look for the equity-gaining deals on the buying end.) Keep in mind this market will change.  For those buyers sitting on the fence, a word of warning: it’s not going to get better than this. There are wonderful bargains out there, and great low interest rates.

A Forbes.com study reported Columbus as the 3rd most stable housing market in America. Central Ohio has had a long history of stable, reliable housing values, and continues to do so.

The end of October was the third month in a row for home listings being added to the market to be down from a year ago (6.9% down for October). This is a good indicator that the market is making a correction. As the listing pace slows, inventory levels drop and home sale prices stabilize and start to rise.

The average sale price of a home in the Central Ohio area for the furst 10 months of 2007 is $173,122.00– which is 1.5% lower than the same time frame for 2006. Average Days on Market for a sale is 107 days.

For specific statistics on sales in your area or neighborhood, contact Sondra for more details.

Ohio FHA HUD Buyers Have a Great New Deal For Home Buying

December 11th, 2007 Bank-Owned/Short Sale Homes, Columbus Buyer Info, The Good 1 Comment

Looking for a great deal on a home?  Now Ohio homeowners can buy a HUD home using an FHA loan with only a $100 down payment.

A HUD home is a property that was financed through a bank with an FHA loan, and is now bank owned.  The Federal Housing Administration oversees the process of selling the home.  To purchase a HUD home, a Realtor must submit a contract for a buyer through the FHA online website.

The FHA-financed home buyer can also get a $2500 sales allowance that can be used for closing costs, or to make repairs.  (If you’re NOT using FHA financing, you can still qualify for a $1000 sales allowance to be used only for closing costs.)

This special incentive is good until September 30, 2008.

The $100 down payment is only for FHA insured sales to owner occupants– meaning you’ve got to live there (investors need not apply).  Mandatory down payments in the past were $500–$1000.

Interested?  Contact Sondra for more details.  HUD homes (as well as standard bank owned homes) vary widely in their condition; there are hideous ones and good ones.  All properties are sold ‘as-is.’  You can have inspections to determine issues, but it’s difficult to get any repairs done.  In some cases, there has been a pre-determined amount mandated by FHA of needed repairs that must be done by the buyer in order for the home to sell.  These repairs can be done after closing; but funds are placed by the buyer into a ‘repair escrow account’ and must be used in a certain period of time.

Columbus Ohio Job Growth Will Offset Foreclosures’ Impact

November 30th, 2007 Bank-Owned/Short Sale Homes, Columbus Buyer Info, Columbus Seller Info, The Good No Comments

The Columbus Gross Domestic Product, or GDP (which is a measure of the value of goods and services) is projected to grow 2.5% this next year.  The national GDP is projected to grow 1.9%.  This will offset the impact of upcoming foreclosures in the real estate home market, and adds to Forbes Magazine (Columbus is listed as the 3rd most stable real estate market in the nation) and other media sources reaffirming the Columbus economy and housing market as stable.

Other Ohio cities are struggling…. Lima Ohio is projected to see a 1% loss in GDP, and both Cincinnati and Springfield are looking at a 1/2% loss in GDP for 2008.

For more details on the report specifics from Global Insight, click here.

Seven Reasons to List Your Home During the Holidays

November 18th, 2007 Cartoons, Columbus Seller Info, The Good 1 Comment

1. Many people start new jobs at the beginning of the year. Relocating buyers need to see your home now in order to buy and make their move….

2. Some people need to buy before the end of the year for tax reasons.

3. Your home will have that ‘warm and cozy feeling’ when it’s decorated for the holidays.

4. People shopping for a home during this time are serious buyers– the lookers are busy preparing for the holidays.

5. Serious buyers have fewer homes to choose from (since many homes go off the market for the holidays)– less competition means more money for you!

6. Sell now for more money and arrange a delayed closing…. you can celebrate the New Year in style.

7. Become a serious buyer yourself, and take advantage of this great buyer’s market while it is still so strong…. 

New Financing Options for First Time Home Buyers

October 24th, 2007 Columbus Buyer Info, The Good 5 Comments

Now that the reign of No-Money-Down, Credit-Doesn’t-Matter loans are sinking into the sea, it’s getting a little tougher for first time home buyers and those credit-challenged buyers to get the financing to buy a home.  Here’s a couple of options:

1. Fannie Mae offers an Expanded Approval program– lenders can now say ‘yes’ to borrowers with blemished credit.  You might have a bit higher interest rate, but you’ll also have a stable fixed-rate loan.  Your lender will need to be able to submit your application through the Fannie Mae Desktop Underwriters system.  Some lenders can also offer a bonus Timely Payment Rewards option– this feature rewards the home buyer’s good payment record by reducing the interest rate (when was the last time you had a bank thank you by reducing your interest rate?!?).

2. Fannie Mae also has a program called My Community Mortgage. It’s a flexible mortgage designed for low and moderate income borrowers.  There is no minimum borrower contribution, the mortgage can go up to 40 years, and it’s possible to get 100% financing.

3. Freddie Mac has a similar program called the Home Possible Mortgage, with both fixed rate and adjustable mortgages. The Home Possible mortgage has a unique feature that allows the buyer to own another home.

Search out lenders that offer these programs to fit your needs.  By the way, special kudos to the mortgage blog www.lendingclarity.com– it’s a great source of ‘all the good’ in the mortgage finance industry. Marc Brinitzer is the mortgage broker who writes this blog, and he’s licensed to do business in most of the western US…. so remember that, all you Western-area readers! This blog is a great resource of good information, and I’d trust Marc to handle your needs…..

For Columbus area lenders, feel free to contact Sondra for more information.

Eric Clapton Likes Living in Columbus, Ohio- You Would, Too

October 15th, 2007 Columbus Buyer Info, The Good No Comments

Yes, Eric Clapton has purchased real estate in Columbus, Ohio. While some of the jet-set crowd might wrinkle their noses and giggle at the derogatory nickname of “Cow-lumbus,” suggesting our city is not quite as sophisticated as the glam cities of the world, Eric and others smile and quietly enjoy a comfortable, private, and fulfilling family life.

For those not ‘in the know’…. come see what you’re missing.  We’ve got water views. We’ve got fabulous prices. We’ve even got fun night life! Getting around the city is a snap, our airport runs on time, and international flights zip in and out of the city. Take care of your ‘business’ and come home to a place where your neighbor will simply nod hello and not try to take your picture for the next magazine cover story.

How far will your dollars take you?  For those of the money persuation, this little gem will run you 3.7 million dollars. You’ll get 10 extremely private acres, a private dock, a 9,000+ square foot home with all the amenities, a guest house, and an indoor sports/spa complex that includes a basketball court and a great pool. Compare that to real estate in LA or Washington DC.

For the budget minded, a mere $500,000 will get you nearly 3 acres, a comfortable home with 3,700 square feet, real views of the water, and an indoor pool.

Want to consider living in the Columbus, Ohio area?  Contact Sondra– she’s a CRS Realtor and knows the market well.  There’s many more choices available… we’ve got a strong Buyer’s Market going here.

Columbus real estate is a good investment– central Ohio offers the best of all worlds– big city life, Midwest sensibility, privacy, and easy access.  We’re a well-kept secret you need to discover….

99.2% of Mortgages Are NOT In Foreclosure

October 8th, 2007 Bank-Owned/Short Sale Homes, Columbus Buyer Info, Columbus Seller Info, The Good 4 Comments

That’s a line from a report issued by Gary Watts, a real estate economist and forecaster for the real estate industry in California. There’s been a lot of buzz in the real estate blog world over his report he presented August 2007 in Monterey, CA at a Coldwell Banker retreat titled, “The Real State of Real Estate.”

In addition to the startling fact titled above (due to the fact that real estate drama has been a favorite topic of big media), here’s a couple other pertinent facts that will help put the Big Picture into proper perspective:

1. Sub-Prime loans make up only 5% of all the loans in the US.

2. Media reports of ‘massive delinquencies and huge foreclosures in the sub-prime market’ are not accurate– they are lumping three categories of a delinquent payment, a notice of default, and a foreclosure together.

3. Only 3.23% of all sub-prime loans (that’s 3.23% of 5% of the market– see #1 above) have gone from the ‘notice of default’ into the foreclosure process.  Only 1.28% of all prime loans have entered the foreclosure process.

4. As of July 2007, there was 1 foreclosure filing for every 693 homes in America.

5. For the 3.23% of sub-prime loans going bad in #3 above, 68% of these people are able to prevent the foreclosure by refinancing or selling their home.

6. In 2006, the US had a combined foreclosure (sub-prime and prime loans) of only 1.09%.

7. For the fore-closures that happened, the top 4 reasons they occurred were: 1. Fraud  2. Unethical lending  3. Loss of job  4. Medical crisis.

Homebuyer Help- Ten Tips to Assure Your Home Loan Approval

October 1st, 2007 Bank-Owned/Short Sale Homes, Columbus Buyer Info, Columbus Seller Info, The Good 1 Comment

Barb Collier of Metrocities Mortgage graciously allowed me to share these important credit tips for all buyers who want to have their loan close:

1. Do NOT apply for new credit– your credit score can lose points each time a creditor or lender pulls your credit report.

2. Do NOT pay off collections or ‘charge offs’– you can pay off old accounts at closing.  Doing so sooner could drop your credit score…

3. Do NOT close credit accounts– it’s possible that your debt ratio will look like it has gone up.  This can also affect other factors in your credit score.

4. Do NOT max out or over charge your credit cards– Try to keep your credit balances below 30% of your credit limit during the loan process.

5. Do NOT consolidate your debt– you can be penalized for this.

6. Do NOT do things that can raise a ‘red flag’ by the credit scoring system– this would include adding new accounts, co-signing on a loan, changing your name or address with the credit bureaus, buying new major purchases (furniture, cars, etc.).

7. DO join a credit watch program– you can monitor your own credit report (you will not get dinged for a ‘hard’ inquiry).

8. DO stay current on existing accounts– one 30–day late notice can cost you.

9. DO continue to use your credit as normal– if it appears that you are changing your pattern, it could raise a red flag.

10. DO call your loan officer– ask your loan officer before doing anything that impacts your finances… a little caution could save your loan.

For more tips and good information on how credit scores are created, go to Credit Score Basics in Real Estate.