Central Ohio Real Estate Market News

Entries categorized as ‘Buyers’

What’s your house personality?

July 11, 2009 · Leave a Comment

The suburbs around Columbus seem to have “personalities’. People gravitate toward one suburb or another based on the personality they perceive the suburb to have. Those perceptions may be correct or they may not. cookiesSome suburbs are similar, yet different.

People who like older homes with nooks & crannies may opt for Worthington, Upper Arlington, Clintonville or Bexley. Those who like newer homes may elect to live in Dublin, Powell or Lewis Center. A suburb like New Albany is for those that enjoy the East Coast Williamsburg look. Some people take comfort in buying a “normal” house that, while it may have some unique features, it’s not so different from others. The home conforms.

Then there’s the eclectic set of people. The “march to a different drummer” kind of folks. Cookie-cutter homes aren’t for these people. They view themselves as unique and want a home to reflect that uniqueness. The typical subdivision isn’t their style either because many subdivisions don’t allow uniqueness.

drumCurrently I have a listing that is one of these “different drummer” homes. Today I was checking inventory availability in the Hoover Reservoir area where this home is located. As I looked at the homes and their interior photos, it occurred to me that although the area east of Hoover Reservoir isn’t really like a subdivision, there was some commonality to the homes. The commonality to them is their “uncommonness”.

I began to wonder if people gravitate to this area because of the ability to live within a pastoral setting in a truly custom home that is unlike any other. Most of the homes are built to take full advantage of the outdoor view, be it trees, ravines or the reservoir’s water view. I suspect these are people who are comfortable in their own skin and confident enough to venture outside-the-box with their home’s architecture. Simply because of the terrain, they may also have an appreciation for nature or simply enjoy their privacy.

It’s interesting how birds of a feather flock together, isn’t it. Oh-h … and did I mention how many unique birds – those with actual feathers – flock to this east side of Hoover Reservoir as well?

If you’re the type of person with your own drum and want a home to reflect that, give me a call. I’ve got one that will knock your socks off!

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Delaware County · Dublin Ohio · Franklin County · Home buying process · Homes · Homes for sale · Lewis Center Ohio · Powell Ohio · Worthington Ohio
Tagged: , , , ,

Will you be visiting the BIA Parade of Homes?

July 8, 2009 · Leave a Comment

parade-of-homesThis weekend marks the beginning of the BIA Parade of Homes. It will be held at Tartan Ridge in Dublin and should prove to have the elegant homes of past years. There are eleven builders participating in this year’s event.

It’s always fun to visit the Parade to view new decorating trends or get ideas for our own homes. I suspect some “honey-do” lists get a little longer after the visits.

The Parade runs from July 11 through July 26. Hours are Mon-Sat 12pm-9pm; Sun 12pm-6pm. Tickets cost $12 and parking costs $2. Kids under 12 are free. Visit the BIA Parade web site for locations offering discounted tickets. Tartan Ridge is northwest of downtown Dublin, off Hyland-Croy Rd near Glacier Ridge Metro Park.

I’ll be there on July 18 working at the New England Homes model. This builder has won awards at past Parades, so be sure to visit it. If you’re there on the 18th, be sure to say ‘hi’. 

parade 004

EDITED:

I went to the Parade location today to pick up my pass to work the New England home. Here’s a photo of the New England Homes model  where I’ll be on the 18th.

It’s very nice inside with a great floor plan. It’s already sold, but the builder can build one just for YOU!

 

parade 006  This is the Duffy home model. I thought it was a very appealing style, especially with the copper roof. I haven’t been inside as there were many workers there today making last minute preparations for Saturday’s opening.

Aren’t you excited just looking at these gorgeous homes?

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Delaware County · Homes · Homes for sale · New home builders
Tagged: , , ,

Can we find good news in the Jan-Jun home sales vs 2008?

July 7, 2009 · Leave a Comment

The 2nd quarter homes sales data is now available for our review. I confess, I thought the numbers would be better than they are. Some agents are reporting that they are busy but when quizzed, those are agents selling a fair number of REO’s or low priced homes. The more expensive homes are still selling very slowly.

The following graph is an update from one I created in May. I’ve also added more school districts for a better comparison to the northern Franklin county/southern Delaware county areas. Although many of the school districts sold substantially fewer homes than in 2008, the average price of the homes sold has not declined nearly as much. For instance, 23% fewer homes were sold in the Olentangy school district but the price that buyers paid was only 2% lower than last year. The Westerville district saw a similar disconnect with 29% fewer homes sold at an average price that was only 9% lower.

This might be a disappointment for buyers hoping to submit a low-ball offer and then have the seller accept it. The disappointment for sellers is that if they plan to hold firm with their pricing, they may have their home go unsold given the limited number of buyers.

09 v 08 Jan-Jun Homes Sales in central Ohio

Click to enlarge chart

The good news – for sellers – is that for the past two months, average home prices in most of these school districts has been increasing somewhat each month. The good news for buyers is that these prices are still below what they were a few years ago. The “experts” predict that the current market is a “reset” and that it will be quite some time before we return to the higher prices that we saw in 2003-2005.

Recommended reading for home buyers:

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Delaware County · Delaware Ohio · Dublin Ohio · Franklin County · Galena Ohio · Hilliard Ohio · Home prices · Homes · Housing stats · Lewis Center Ohio · Powell Ohio · Sellers · Worthington Ohio
Tagged: ,

So your Realtor® won’t let you buy the house you want …

June 13, 2009 · 4 Comments

As Realtors®, part of our job is to help our clients buy the home they want (assuming the home is within the approved financial means of the client). When we first meet with the home buyer, we talk to them about their basic criteria, their preferred locations, their “need to haves” vs their “want to haves”, and what they absolutely don’t want.

During the physical viewing process, a good agent will listen to the subtle comments a buyer makes as they’re viewing the various homes. Without realizing it, very often the buyer will reveal something about their “feelings” that’s not on the basic list.

I had some relocating buyers a number of years ago where we viewed quite a few homes that met their criteria list, but none of them were “the perfect home”. None had the special set of features that made the buyer want to buy. At the end of the day as we were assessing the homes and making plans for their next trip to the area, the wife said, “I FoyerViewOfBackwant a home that makes me go WOW when I walk in the front door”. Ah-ha! That’s a big clue. That’s what I mean by “feelings”.

So prior to their next visit, I previewed homes that met their basic criteria (on a golf course, 1st flr MBR, under $500K) THEN I looked for the WOW FACTOR. I found it … we viewed the home the following weekend … and they bought it. The view from the front door was of a curved staircase and wall, marble floors, AND a view of the golf course from the special windows in the Great Room.

Now what happens if, as a home buyer, you’re working with an agent that won’t let you buy the home you really want?

I once had a buyer’s agent tell me that although the buyer really liked the home, he wasn’t going to LET her buy it because he thought it was too big for her. SAY WHAT! He told me he had to keep holding her to the initial criteria she gave him and he wasn’t going to allow her change it. He felt she was selecting homes that were larger than what she really needed. In other words, he was deciding what home she should or should not buy based on HIS feelings … not hers.

If I had ever had an agent with that kind of opinion when I was shopping for any of the homes I bought prior to becoming a Realtor®, I would have fired that agent. It’s common for buyers to change or adjust their criteria while they’re viewing homes. It’s a learning process that can and should be allowed to evolve. It’s not uncommon to have a buyer fall in love with a home that met very little of the initial criteria. They fall in love with it because it just “feels” right.

The decision to buy a particular home usually ends up being an emotional one. We choose a home because we can see ourselves living in it. We can imagine where we’ll have our morning coffee, where we’ll relax at the end of the day, how we’ll celebrate holiday dinners, take Sunday afternoon naps, cozy up with a favorite book, etc.

So, pick a home YOU like and don’t let your agent pick one THEY like. This also applies to parents’ opinions … except of course, for my kids … where my opinion does count. :-)

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Golf course communities · Home buying process · Homes · Homes for sale · Realtors®

Should home buyers disclose their warts?

June 7, 2009 · 1 Comment

Should home buyers be required to provide a Disclosure similar to the Property Disclosure that is required of home sellers? This was a question posed by Jim Crawford, an Atlanta real estate agent in one of his blog posts. So far, the comments to that post have mostly been in support of the concept.

Currently home sellers are required to “tell all” about their homes – warts and all. Buyers have access to this information before they ever decide to write an offer on the home. Buyers can decide on their acceptance -or non acceptance – of those warts.

wartsThere is no such Disclosure required of home buyers. It’s not a level playing field, as Jim says. Should home buyers be required to provide home sellers with a Disclosure about the buyer’s warts BEFORE they decide to enter into a Purchase Contract with that buyer?

In real estate we use the term READY-WILLING-ABLE buyer. Should a Buyer Disclosure provide the seller with proof that the buyer truly is Ready-Willing-Able?

What might a Buyer Disclosure include?

  1. Readiness To Buy
    • Information on whether they have a home to sell first; whether that home is in-contract; the closing/possession date of that home’s contract.
    • If renting, information on lease commitments (month-to-month, 30- or 60-day notices, etc.).
    • Information on whether buyer has committed to a specific lender and will or will not be exploring other lenders for a better deal. (sellers need to know whether it’s a reputable lender since this is so critical to the actual sale of the home)
  2. Ability To Buy
    • Identification of the lender’s company that the buyer has committed to.
    • Information on whether the buyer has provided all required papers to the lender (a yes/no answer).
    • A Pre-Approval Letter that includes the maximum price the lender has approved the buyer to buy. (some buyers have been making offers on homes much higher priced than their approval and this causes later problems for all involved)
    • Identification of any buyer-related contingencies to that Approval (i.e. getting funds for down payment).
    • Information regarding the due dates the lender requires to execute a loan. (i.e. if a lender is taking 45 days to close, the buyer shouldn’t write an offer to close in 30-days)
  3. Willingness To Buy
    • The number of any previous Purchase Contracts entered into by the buyer and general reason as to why those Contracts were not executed. (can indicate financing issues or buyer’s remorse)
    • Identification of the intended inspections the buyer plans to have conducted and the name of the inspection company they plan to use. (will they use Uncle Charlie because he’s good at “fixing” things)
    • Is the buyer aware that they are entering into a legally binding Contract with potential penalties for non-performance?
  4. Awareness of the Home Buying Process
    • Is the buyer aware that they may be asked to forfeit their earnest money to cover the costs the seller incurred as a result of entering into the Contract with the buyer?
    • Is the buyer aware that there are no perfect homes and that all homes require routine home maintenance?
    • Why should the seller enter into a Contract with you? (an essay question)

One of the agents who responded to Jim’s post indicated he is already using a Buyer Disclosure. With Contracts falling out due to the buyer’s inability to secure financing or using a home inspection to get out of a Contract when they have “buyer’s remorse”, these Disclosures may become more customary to level the playing field between sellers and buyers.

Once burnt … twice shy

pay moneyIt may also become more customary for sellers to ask to have the earnest money paid to them if the deal falls apart, in order to cover the expenses they incur to store their furniture, make their own deposits on a new home or temporary housing, etc., plus, the lost opportunity they suffered by having their home off the market. In Jim’s post, I commented that having a seller keep the earnest money can be viewed as a “restocking fee” that some retailers charge when customer’s return merchandise. Adding this Term into the Contract places some risk on the buyer and might minimize the casualness that some buyers have when they enter into a Contract.

The majority of buyers take their home-buying very seriously. They’re excited about buying and thoroughly understand what is taking place. They do all their homework in advance of writing a Purchase Offer. It’s too bad that a few may be ruining it for the honest, truthful, serious READY-WILLING-ABLE buyers.

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Home buying process · Home selling process · Homes · Homes for sale · Sellers

You’re FIRED! Here’s your golden parachute.

May 30, 2009 · Leave a Comment

golden parachuteReal Living, the nationally recognized innovative real estate company, has taken a page from the automotive world and is offering a PEACE OF MIND PLAN for home buyers. If you’ve been hesitant to purchase a home now – even though interest rates and prices are quite low – here’s a program that just might solve your dilemma.

If your heart is set on a new home, but you’re stressed about the economic realities we all face, Real Living HER has your answer. The Peace of Mind Plan is designed to provide the comfort you deserve and the confidence you need to make your move a reality.

Be sure to click on the above Peace Of Mind link for more details (it IS an insurance policy afterall), but a quick version is …

One-Year Coverage

Use a Real Living HER agent to represent you when buying a home, finance your mortgage with Real Living Mortgage, and you can be covered with ONE YEAR of insurance benefit to cover a monthly mortgage payment of up to $1,500 for up to 6-months if you become “involuntarily unemployed” during the first year you are in your new home.

Two-Year Coverage

Once you qualify for the One-Year Coverage, if the home you buy is a Real Living HER listing then the Peace Of Mind Plan extends for a second year.

4570 Red Bank Rd, Galena OH 43021

I have an upscale listing that might be just the ticket for this type of program. At open houses that I’ve held for this home, some of the guests have been reluctant to move forward with purchasing, even though they really liked this home, because they were uncertain about the future of their employment. If those reluctant buyers are already working with one of the hundreds of Real Living HER Realtors® and they finance with Real Living Mortgage, then buying this home could earn them an extra year of coverage. Sounds like a winner to me!

Want to know more about this plan? Call June Zepp with Real Living Mortgage at 614-825-8806. She can give you ALL the details. Or call me at 614-825-8860 for assistance in finding YOUR next home or to learn more about this Hoover Reservoir home in the photo.

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Delaware County · Galena Ohio · Home buying process · Home selling process · Homes · Homes for sale · Real Living HER · Realtors® · Sellers
Tagged:

I’m Going To Wait For Housing Prices To Hit The Bottom …

May 9, 2009 · 6 Comments

In Central Ohio, real estate agents frequently hear home buyers say they’re going to wait until the market prices hit the bottom before they buy. Not a bad strategy since no one wants to pay a too-high price for anything – not just homes.

The big question regarding this strategy is “HOW WILL YOU KNOW WHEN THE MARKET HAS HIT THE BOTTOM“?

Even the economical experts don’t have a good answer on this. Bernacke recently said that he “expects” the market to improve by 3rd quarter. The 3rd Qtr is only two months away. If a home buyer starts their home buying process NOW – getting pre-approved for a loan, shopping for a home, entering into a contract to buy, waiting 30 days to close – then the two months are here!

The obvious answer to the “how will you know” question is ……. YOU’LL KNOW WHEN THE PRICES START TO INCREASE! Oops!

Market BottomSo let’s assume your price range is around $200,000. Right now, prices are depressed and interest rates are very low. Sellers are nervous and may be willing to negotiate to make sure they capture one of the few buyers that are shopping now.

The reason there are fewer buyers now, is because other buyers are sitting on the fence just as you are.

Builders have reduced the number of homes they’re building. Resale inventories are relatively low compared to past years. So overall inventory has or is, stabilizing here to more closely match the lower buyer demand.

We’re coming to the time of year when demand normally increases because families want to move during the summer months when kiddies are out of school. What do you think will happen when that demand increases?

  • The sellers may be less willing to negotiate because there are more buyers looking at their home.
  • The increased demand generally increases interest rates.
  • You’ll be competing with more buyers for the lower inventory and may need to pay closer to list price for the home.
  • Higher demand will increase prices. Remember your Econ 101 class!

The most important factor in the above is the increasing interest rates. You may end up paying $195,000 on either side of the curve but if the interest rate you pay is 5.5% on the rising side versus 4.75% on the declining side, then you’ve lost for the long term. A higher interest rate, spread over 30 years makes a substantial difference in your total cost.

Refer to the article I wrote a couple days ago to see that even though fewer homes were sold this past Jan-Apr, the prices didn’t decline nearly as much as the unit volume sold. If you wait hoping that prices will decline another 5%, you may just find you waited too long. Nobody knows.

The one thing we DO know is that you may have missed buying your favorite home and enjoying spending the summer living in that new home versus spending the time in that cramped apartment or too-small home.

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Home buying process · Home prices · Homes · Homes for sale
Tagged:

Jan-Apr Comparison of Homes Sold & Prices

May 5, 2009 · Leave a Comment

Some of our subdivisions in Central Ohio aren’t doing too bad versus last year, but the home sales in total in the key school districts that I usually report on are still softer than last year. Far fewer homes have been sold Jan-Apr 2009 than were sold in the same period for 2008. However, the average prices in most of the districts are only slightly down. Remember, first-time buyers, who may buy less expensive homes, and flippers picking up REO or short-sale properties can reduce the average price of an area. If there are more of them than move-up buyers, the overall average will decline. That’s the problem with “averages”. Please, keep that in mind.

The following two graphs show the number of homes sold along side the average price (in thousands) for the YTD comparison of 2009 vs 2008. One chart shows the data for three school districts in Delaware County. The other chart shows the data for five districts that are primarily in Franklin County. The percent difference is provided for each of the appropriate columns.

Delaware County, Jan-Apr Homes Sold & Average Prices for 2009 vs 2008

09-v-08-jan-apr-sales-del

Click to enlarge chart

 

 

 

 

 

 

 

 

 

 

Franklin County, Jan-Apr Homes Sold & Average Prices for 2009 vs 2008

09-v-08-jan-apr-sales-fra1

Click to enlarge chart

 

 

 

 

 

 

 

 

 

 

Compared with the chart I provided in early May that showed the number of homes currently for sale, these results should indicate to buyers that they have a very good buying opportunity and to sellers that their home needs to be in top notch condition at very competitive prices.

It’s still a buyer’s market and with the very low mortgage rates, if a buyer is financially able to buy, they really should consider doing so. Feel free to call me if you have any questions.

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Delaware County · Delaware Ohio · Dublin Ohio · Franklin County · Galena Ohio · Hilliard Ohio · Home prices · Homes · Housing stats · Lewis Center Ohio · Powell Ohio · Sellers · Worthington Ohio
Tagged: ,

New rules for home appraisals went into effect May 1

May 2, 2009 · 2 Comments

On May 1, the national rules for real estate appraisals changed dramatically for lenders who sell their loans on the secondary market. In order to sell their loans, they must conform to the rules set by Fannie and Freddie Mac. Those rules require a lender to adopt the HVCC – Home Valuation Code of Conduct.

The key changes required by the government are:

  • Lenders can no longer order appraisals directly from local appraisers that they’ve come to rely on and trust. Now they must order an appraisal through a 3rd party appraisal management company, who will order the appraisal.
  • Those 3rd party companies will in turn order an appraisal from their own network. Their network is made up of appraisers willing to work for far less than they normally receive.
  • Appraisers normally receive $325-$350 for their work. The management companies may only pay them $175. The difference is retained by the management company.
  • There may also be a change in the amount charged with one wholesale lender reportedly charging a flat fee of $455 through the 3rd party management company.
  • In the past, buyers (or homeowners refinancing) were able to pay the appraisal fee at closing. Now that fee will be required upfront.
  • If the 3rd party’s appraiser is unfamiliar with the local market and generates an under-valued appraisal, a new appraisal may need to be ordered. This will result in a second fee charged to the buyer (or refi-ing homeowner).

(The above information was provided by the Ohio Association of Realtors® May 2009 newsletter.)

Last fall I wrote a post about an appraiser who called me for info on a home. As you can read, that appraiser had no knowledge of the area or the home she was appraising because she was from Springfield. OH – not from the Columbus market. Because of her lack of knowledge of the area and the differences in builders, there was a good chance that her appraisal came in below the purchase price – causing grief for both the buyers and the sellers.

Adding to this predicament is finding appraisers willing to work for half the pay. Even if they do agree, one wonders whether they will do the same conscientious job as they did when they were earning more. Ask yourself how you would feel if your employer suddenly cut your salary so they could pay a “middle-man”?

While the intent of the government was to eliminate the opportunity for fraud being committed, as occurred during prior years, they are now punishing hard-working, honest appraisers and home buyers and sellers. If the out-of-area appraisers submit too many under-valued appraisals, forcing sellers to lower their price to keep the transaction in-contract, then ultimately we’ll see home values decline unrealistically. While we don’t support over-valued appraisals either, certainly there is a better way to ensure an honest, fair, and realistic appraisal without government intervention.

According to the OAR report, these rules only apply to mortgages that will be sold on the secondary market. If a buyer chooses an FHA loan or a lender who does not sell their mortgages, then the HVCC may not apply. When selecting your lender, you might want to discuss this issue with them so you’ll know what you may be facing as you go forward in the home buying process.

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Home buying process · Home prices · Home selling process · Homes · Sellers
Tagged: , ,

Is your safety being compromized by Zillow?

April 29, 2009 · Leave a Comment

Real estate agents who blog have been all abuzz today regarding a new I-Phone app from Zillow. The app allows someone driving through a neighborhood to gain detailed info on each home they are near … whether it is for sale or not. Some agents think this is a pretty cool app.

The home’s info is coming from public auditor’s site, so it’s available via a computer anyway. However, having it on an I-Phone really makes the info more immediate. Zillow will be promoting it as a benefit to buyers to learn what a home most recently sold for, what price the home is listed for (if for sale) the number of bedrooms, interior photos if it is for sale, with a phone number to call for the listing agent or the seller if they’re selling it themselves. Of course, the grossly inaccurate Zestimate will be shown as well.

Last June I wrote about Google’s Street View where cars with cameras drove streets taking a driving tour of the neighborhood. Zillow is taking that a step further with even more details on each home.

While this might be handy for legitimate buyers, I wonder if we, as regular homeowners, aren’t losing too much of our privacy. As we know, these things tend to be quickly picked up by “unsavory” characters.

How do you feel about having someone with an I-Phone sitting in a car outside your home pulling up the details of your home? What if your home is for sale … do you want them to be able to see your room arrangement, furniture, electronics, or where the kids’ rooms are?

This scares me. Does it bother you as well?

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Home prices · Homes · Homes for sale · Housing stats · Internet · Safety · Sellers · Technology
Tagged: ,

What size is your home … really!

April 24, 2009 · Leave a Comment

If I asked you what size your home is, chances are you would reference the size the Auditor has listed on that web site. Perhaps, you live in a customized home, in which case you might refer to the size that your architect or builder gave you.

How certain are you of that measurement?

If you could choose a standard for the way square footage was measured for a home, which method would you prefer?

Outside measuring:

With this method, the outside dimensions are measured – usually with a wheel. Then additional measurements would be taken for a garage and subtracted. If the home is a 2-story rectangle, then the base dimensions can merely be doubled. If there is a vaulted Great Room then the portion without a floor above is measured and subtracted, although not always. I’ve been told that builders will sometimes count that air space in the square footage to increase the size and thus, decrease the price per square foot making the home “seem” to be a better buy. The small space for a bay window is calculated and perhaps added. So bottom line, this method mixes both outside and inside measurements.

Inside measuring:

Although not usually done, one could measure all the rooms and total the measurements. This is more likely to give actual usable space, but would you include closet space? What about the space allocated to stairways?

How would YOU measure?

floor-planIf you were required to ACCURATELY measure the home you now live in, how comfortable would you be with the final measurement? What if your home looked like this? How comfortable would you be with final measurment? Do you think you could do such an accurate job that it would hold up in a legal court?

When a home is listed in our CBR MLS, the section on square footage is autofilled from the Auditor’s web site. Very often it is wrong. How can it be wrong? Well, a builder could have submitted a floor plan that was intended to be built. Later in the building design stage, bump-outs may be added or subtracted. Those changes aren’t always picked up by the Auditor. The architect could have planned on a specific size, but the actual dimensions may differ a little from the blueprint. Plus, because this measuring can be rather difficult, if three appraisers measured, chances are they would come up with three different sizes.

Buyers have sued and won

In our litigious society, do you know that a few buyers have sued because an MLS (from an Auditor) said the home was a certain size, and the buyer later found out that it was a couple hundred square feet off. Of course, they ONLY do that if the size is SMALLER. They keep quiet if the size is BIGGER. Hm-m-m-m.

If you were responsible for measuring the home in the above diagram, how would you feel if a buyer sued you because your measurements were off by a couple hundred feet?

Yeah … I thought that might be your response. :-)

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Homes · Housing stats
Tagged: , ,

The $8000 First-Time Home Buyer Stimulus seems to be working.

April 23, 2009 · Leave a Comment

The Columbus Board of Realtors® issued their monthly press release today, with home sale figures for March.

Drum roll please …

“Home sales continued to increase in March, marking the highest number sold in a single month since October, and a sign that first-time buyers are starting to come off the fence.”

Gary Parsons, president of the CBR said, “It appears historically-low interest rates, realistic sellers and the $8000 tax credit are positively impacting our market.” There were 1,360 homes sold in March … a 21% increase over February sales.

Affordability is still at record levels. The average sales price increased in March to $143,287. That’s the highest average sales price this year. “Prices are still favorable, but as more inventory is absorbed, prices will continue to rebound,” Parsons said.

This weekend is supposed to be VERY NICE! It will be a great weekend to shop for a home. If you’re in search for a luxury home near Hoover Reservoir, be sure to come to my open house at 4570 Red Bank Rd, Galena 43021.     Google Map

Categories: Buyers · Central Ohio · Home buying process · Home prices · Home selling process · Homes · Housing stats · Realtor® selection · Sellers
Tagged: ,

Home Buyers Need To Consider Style When Making Offers

April 13, 2009 · Leave a Comment

Last Friday, I wrote an article for home buyers who are preparing to write a purchase offer. In it I mentioned that when preparing comps, the buyer and their agent should consider the style of home. It’s important to make apples-to-apples comparisons since there is or can be differences based on the style.

Ordinarily ranch homes cost the most per square foot even when they’re being built. Consider that a 2000 sq ft ranch can have twice the “footprint” that a 2000 sq ft 2-story does. Depending upon the design, it can require a larger lot and of course, land costs money. It also can have twice the roofing material, trusses, basement walls, etc. Because of the higher cost, fewer are built. However, with boomers now wanting the ease of living on one floor, the demand for this style may surpass supply … hence, maintaining a higher price per square foot.

The next style that is apt to sell at a higher price per sq foot is the home with an owner’s suite on the first floor. Again the boomers like this convenience, with extra space upstairs for when the grandkiddies come to visit.

The least expensive home to build is the 2-story with all bedrooms on the top floor. This style has the most demand so builders build LOTS of them and can do it very efficiently, thus, keeping costs lower. They also may require less land. If the supply of this style of home gets too high vs the demand, this style may see the most downward pressure on price.

To illustrate the differences to prices by style, I checked the home sales since January for just the Olentangy school district which encompasses most of southern Delaware County. I separated the Powell area from the Lewis Center – Galena areas, since prices differ.

Powell area by Style
Style All BR’s Up 1st flr MBR Ranch Split
# Homes 28 11 4 6
Avg Sq Ft 2984 3790 2477 3420
List $ $323,204 $486,102 $300,887 $415,766
Sold $ $307,252 $449,256 $285,975 $407,697
% of List $ 95% 93% 95% 97%
$/sq ft $108 $118 $116 $117
Lewis Center, Galena area by Style
Style All BR’s Up 1st flr MBR Ranch Split
# Homes 48 11 3 12
Avg Sq Ft 2548 2955 3200 3450
List $ $262,161 $303,202 $281,266 $326,782
Sold $ $251,186 $287,143 $268,300 $314,223
% of List $ 96% 95% 96% 94%
$/sq ft $99 $99 $100 $89

Regardless of the area you’re considering, it’s a good idea to do a similar evaluation for the home or homes you are considering. Of course, you don’t want to overpay for a home, but you also don’t want to offer too low of a price that might cause your offer to be rejected. Being armed with this complete evaluation will help you be a smarter buyer.

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Delaware County · Galena Ohio · Home buying process · Home prices · Homes · Housing stats · Lewis Center Ohio · Powell Ohio
Tagged: ,

Home buyers guide for making an offer to purchase

April 10, 2009 · Leave a Comment

In several parts of the central Ohio area, the market is beginning to pick up. Buyers are out shopping … and buying. New homes are coming on the market and some are going into contract quickly. Prices are stabilizing and increasing in some areas as sellers get multiple offers.

When home buyers have found their perfect home and are ready to make their initial offer to purchase, they may be unsure as to how much to offer. They may also have in mind what their top price is that they want to pay for the selected home based on the comps their real estate agent provided them. An important piece of this evaluation is the ratio of list vs sell prices that have actually occurred in the area. Armed with this info, you’ll have a better idea of the expected selling price that the seller is anticipating.

Step One: Calculate the list/price ratio for the area or neighborhood

I just checked the ratio of list-to-sell for some of the northern Franklin County and southern Delaware County school districts. Based on actual sales since Jan 1, here is the final percentage on average that buyers paid in relation to the list price.

  • Buyers paid 96% of the list price in these school districts: Delaware, Westerville, Worthington
  • Buyers paid 95% of the list price in these school districts: Dublin, Hilliard, Marysville, New Albany, Olentangy

Step Two: Consider your top Pre-Approval price

You know what limit your lender has placed on the “top” price that you’ll be approved for. You might be able to consider buying a home that is 2-3% higher than that, but that assumes you’ll be able to negotiate the seller down to a price within your range. That may happen or it may not if the seller knows they have other interested parties. For instance, if you’ve been approved for a top price of $200,000, then as a rule of thumb, you should confine your search to homes priced under $204,000.  Even then, enticing that seller to come down $4,000 in their price may be risky, plus, it puts you at the top end of your approval range which may not give you any breathing room on your mortgage payment.

Step Three: Estimate what the final selling price might be

In the above example, if you looked at and selected that home that is priced at $204,000 AND that home is in an area that typically sells for 96% of the list price, then you might expect to settle on a price near $196,000. If that price is substantially more than you want to pay for the home, then you probably should not be considering that home. It’s at this point that your agent needs to closely evaluate the neighborhood comps of homes that are very similar and offer similar amenities and floor plan. Is the home overpriced for what it offers or is it a “good buy” at the list price. If the home is a “good buy” at $204,000, then you may not be able to buy at $196,000.

Many homes on the market now are very well priced, so if you’re planning on buying a home much less than 94% of the list, you’re probably going to be disappointed and lose out on some good opportunities. This is central Ohio … NOT Florida or California. Our prices didn’t increase 20-30% each year in the past and they’re not declining by that amount either. You’ll need to be realistic during this Step 3 evaluation.

Step Four: Determine your initial offer

Now you should consider your total offer and what it might take to convince the seller to agree to accept your offer. It’s not always price that gets an offer accepted. The more you want the seller to lower the price, the more you may need to offer in other areas.

  • Can you be flexible on a closing date that fits the seller’s schedule or allows them to have a few days after closing to move their belongings out? Or are you going to insist on possession at closing, which may require the seller to have their possessions loaded on a truck prior to closing without be assured that you’ll get final loan approval to close?
  • Are you willing to offer more earnest money to show you’re really serious about buying the home? Offering too little earnest money sends a signal that you’re either cash-strapped or not quite serious about buying the home.
  • Do you have a pre-approval letter to attach to the offer to show the seller that you’re pre-approved to buy in the seller’s price range and is that lender reputable? The seller wants assurance that you’re likely to be able to make it to closing regarding your financing and underwriting. Plus, in today’s arena, the seller will want to know who the lender is and whether that lender is having financial difficulty.
  • Don’t base your offer on what you can afford. Your offer should be based on what the home is worth. If what the home is worth is more than you can afford, then you should be viewing lower priced homes.
  • For goodness sake, DON’T tell your agent to tell the seller all the things that are wrong with the home as rationale for your low-ball offer. Don’t insult the seller’s prized possession and expect the seller to negotiate to your benefit after doing that. Afterall, you’ve made the decision to buy the home, so it must have some redeeming value otherwise you would have selected another home.

Step Five: Keep negotiating

If you’ve followed the advice in Step 4, you may stand a good chance of getting your offer accepted as it was written, however, it’s very common that something needs to be changed. There’s no limit to the number of counter offers that can be done until both parties agree, so keep negotiating. Usually both parties come to some agreement that is acceptable to both of them. However, once in a while, the negotiations reach a stalemate and both parties decide to move on. That happens. Hopefully, your next offer on another home will be accepted and you’ll be able to become a new homeowner.

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Delaware County · Delaware Ohio · Dublin Ohio · Franklin County · Hilliard Ohio · Home buying process · Home prices · Home selling process · Homes · Homes for sale · Lewis Center Ohio · Powell Ohio · Sellers · Worthington Ohio
Tagged:

Homes for sale in Southern Delaware County

April 1, 2009 · Leave a Comment

In Monday’s post, I advised home buyers to put on their running shoes to get ready to buy a home this Spring. There is an ample supply of homes to select from at a W-I-D-E range of prices. Here’s what is for sale as of this afternoon for a few school districts.

Homes For Sale as of April 1
School District/Area # Homes Highest Lowest Average
Olentangy/Powell 273 $2,450,000 $189,900 $548,272
Olentangy/Lewis Center 189 $998,900 $169,700 $319,929
Olentangy/Galena 74 $799,700 $149,900 $431,554
Olentangy/43015 113 $7,899,000 $159,900 $634,144
Dublin 348 $3,250,000 $109,900 $555,604
Big Walnut/Galena 123 $4,700,000 $37,000 $433,771
Worthington 200 $899,900 $119,900 $279,352
Delaware 188 $775,000 $12,500 $178,749

 

Luxury Homes Over $1 Million

If you’re in the market for a luxury home, there are quite a few available in the above areas. There are 33 homes priced over $1 million in the Dublin school district. There are 18 such homes in the Powell portion of the Olentangy district. There are 14 homes priced over $1 million in the 43015 zip code in the Olentangy school district. And in the Big Walnut district there are 4 homes priced over $1 million.

After you have your running shoes on, give me a call and we’ll find your next home. 

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Delaware County · Delaware Ohio · Dublin Ohio · Franklin County · Galena Ohio · Home buying process · Home prices · Homes · Homes for sale · Housing stats · Lewis Center Ohio · Powell Ohio · Worthington Ohio
Tagged: