The Central Ohio housing market continues to show improving signs of recovery, according to recent industry data. During the 4th quarter of 2014, there were 33.7% fewer distressed home sales in Central Ohio than the same period in 2013.
Meanwhile, we also have fewer foreclosures and short sales sitting in the real estate inventory. During the 4th quarter of 2014, distressed property inventory was down by almost 50% when compared to the same period in 2013.
To illustrate how dramatic of a change this is, in a relatively short period, consider this: in 2011, nearly half of all home sales in Central Ohio involved distressed properties.
This isn’t to say that the challenges of distressed homes are completely behind us. During the 4th quarter of 2014, distressed properties accounted for about 19% of all new listings on the market, which is almost 1 in 5 homes. Please keep in mind that not all distressed property listings will make it to final sale; lenders continually seek delinquency solutions for troubled homeowners. Foreclosures occur only after all homeowner retention options have been exhausted.
The shrinking presence of distressed property helps support stability in market values. This is important to Metro Columbus home buyers because stable home values mean less discrepancy in bank appraisal results.
When the bank appraisal comes in lower than the seller’s asking price, there are headaches with loan approval – because the lender requires the difference to be made up. And if the seller won’t lower their price to match the lender appraisal, then our Buyer-Clients have the contractual right to walk away from the sale!
During the height of the housing crisis, it was not unusual for a number of appraisers to base their market comparisons on some distressed sales, since they were nearly half the market. Discrepancies between sale price and lender appraisal value became a leading cause of canceled home sales.
Understanding the correct market value of a Columbus home is just one of the reasons to use an Exclusive Buyer’s Broker. Without the use of current, and accurate, market comparisons, your purchase offer would largely be a guess as to what the seller might take. There is no reason to pay thousands of dollars more for a home than you should.
Remember that paying “fair market value” for a home where the market has lower than normal quality inventory is okay! If we can pay even less than fair market value, that’s even better! But we certainly don’t want you to overpay – regardless of what the seller “thinks” or “needs”!
As we often tell our Buyer-Clients, “You make your money in real estate on the “buy side” of the transaction”!
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!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
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
