Thinking of buying or selling a home? Even when both sides agree on a price, the deal could fall apart thanks to an under-appraisal.

Short appraisals typically arise in a declining housing market because the lack of recent comparable area homes sales, or “comps,” making it difficult for appraisers to determine the current market value of a property.

Appraisals are largely based on prices recently paid for comparable local properties. Over the past decade, finding œcomps that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust. Discounts paid for foreclosures and short sales have created a dual price structure between œnormal and distress sales.

Today many buyers rely on popular online valuation tools, called AVMs or automated valuation models, instead of a comparable market analysis from a real estate professional. AVMs give fast property value estimates, but they often differ greatly from appraised values because they are determined by algorithms using available local price data, not actual inspections of the property. During this time of record low home values, it™s no wonder that more and more appraisals are coming in below prices that buyers and sellers have agreed on.

The Home Valuation Code of Conduct, or HVCC,  that went into effect last May has compounded the problem. The HVCC prohibits Fannie Mae and Freddie Mac lenders from having direct contact with appraisers.

As a result, most lenders have opted to work through appraisal management companies, or AMCs, whose pool of residential appraisers includes those with limited training and/or little familiarity with the geographic area being appraised.

Protect Yourself

How can you protect yourself from short appraisals? Here are some suggestions for buyers and sellers.If you’re a buyer:

• Insist that  your Realtor/Lender  confirm the appraiser  serve  your county,  and not come from  a neighboring county. After all, you’re paying him or her.

• Request that the appraiser have a residential appraiser certification and a professional designation. Examples include the Appraisal Institute’s senior residential appraiser, or SRA, or member of the Appraisal Institute, or MAI, designations.

• You or your Realtor can also meet the appraiser when he or she inspects the home and share your knowledge of recent short sales and foreclosures that might skew the comps.

Many appraisers are just pulling up data out of MLS (Multiple Listing Service) or off the deed at the courthouse and not checking it out, most good appraisers will appreciate the information.

And yes, you can speak with your appraiser; only your lender is  prohibited  from doing so.

It may seem ironic that buyers would want the homes they want to buy to appraise for as much or more than they are willing to pay. Remember, the purpose of the appraisal is not to help you get a better price, but to protect your lender should you default. The lender wants assurance that your home will be worth enough to recoup their investment.

Even if you have a great job, sterling credit, an adequate down payment and money in the bank, your lender will still want a conservative appraisal. In light of losses they have taken on the millions of foreclosures in recent years and the tough times many banks have had on Wall Street, lenders are taking no chances these days. They are more interested in protecting themselves from a loss than they are in giving you a loan.

If you’re a seller:

• Get an appraisal before you list a home. Search for a qualified appraiser in your area on the Appraisal Institute site.

• Use the appraisal to set a realistic listing price for your home.

• Give a copy of your prelisting appraisal to the buyer’s appraiser. They won’t be offended, and in fact the more professional appraisers will understand that you’re just trying to add more data and another perspective and assist them in doing their job.

• Question a low appraisal. There’s always a chance the appraiser or a supervisor will take into account new or overlooked information.

What  to Do When  an Appraisal Comes in  Low?

Whether it’s an appraisal  the dream home  that’s come in below the price  the seller has accepted, or an appraisal required for the refinacing of your current home?

Chances are that raising the cash for your down payment and closing cost has tapped you out. Finding thousands more to make up the difference between the appraised value and the contracted amount is probably  out of the question.

You™re not the only buyer who has hit the low appraisal snag. This past June and July, 16 percent of real estate pros reported a cancellation in a sale, mostly due to a large number of low appraisals.

However, you don™t have to walk away. In fact, some real estate professionals and economists say that low-ball appraisals are pushing home values down and undermining the housing recovery.

You can fight back. You have options, and chances are you can find a way to make the deal work without increasing your down payment.

Here are Five Steps You Can Take to Fight a Low Appraisal:

1. Get the seller to lower the price. By far, this is the easiest solution, especially if your appraisal comes in less than 10 percent of the contract price. Obviously, a lower price is a great idea for the buyer, but why would a seller go along? In July, 2011 the average home in America took about 88 days to sell. Demand is soft and time is money. Your seller, particularly if they are selling to buy another home, could be in a real bind if you are forced to back out and they have to put the house on the market again. After all, there is no guarantee that if you walk away, the seller won™t receive a low or even lower appraisal from the next buyer™s lender. Today, many buyers are offering incentives to sellers, such as payment of some or all closing costs. Lowering the price might be a cheaper option for the seller in order to get the deal done on time. Sometimes a bird in the hand is best.

2. Ask the seller to offer to carry a second mortgage for the difference. This solution doesn™t cost the seller anything but the buyer incurs greater debt. If the buyer really wants the home but cannot come up with the difference in cash, making payments or a lump sum payment at a later date to the seller is an option. After the escrow closes, sellers often retain the right to discount the second mortgage, and can sell it for less than face value to an investor.

3. Do your research and dispute the appraisal. Is the contract sales price a fair assessment of the property value based on a well-prepared comparable market analysis (CMA) from your real estate agent as opposed to an online AVM? Was the appraisal done by an appraisal management company that may have used a less-than-expert or out-of-town appraiser?Disputing the appraisal may sound a little aggressive but you might be the victim of a poorly prepared appraisal. Do some research first and go to war if you have the ammunition.  You have the right to get a copy of the appraisal from your lender and to find out who performed the valuation. What is the appraiser™s reputation? Have any complaints been filed with your state appraisal licensing agency? Where is the appraiser based? Did they perform an appraisal in a housing market that they may not know well? Did the appraiser have adequate information about the subject property? If your appraisal was conducted by an out-of-town appraiser unfamiliar with your market, you have every right to demand a new appraisal.

What comparables did they use? Ask your agent and the seller™s agent to put together a list of recent comparable sales that justify the agreed-to sales price. Submit that list to the underwriter and ask for a review of the appraisal. Also, ask the agents to call the listing agents of pending sales to try to find out the actual sales price of those properties. Listing agents do not have to disclose the sales price, but many are happy to help because they could find themselves in the same situation. Pending sales are more current and are not closed, so the original appraiser would not have access to them. The key to a successful dispute is data. You will need as much data you can get to back up your dispute.

4. Ask the lender for a new appraisal. Should you find that you have a good case that the appraisal wasn™t fair or accurate, ask your lender for a new appraisal, which you may be charged for.  

Another strategy is to get two additional, unbiased appraisals and use the average of all three to arrive at a fair price. This is a risky strategy, in light of the fact that another appraisal might not come in higher than your first; it might even be lower if values have fallen.

Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely. If a new appraisal is ordered, talk with your agent about somehow splitting the cost with the seller. Perhaps the listing agent and selling agent will split the fee so the buyer does not have to incur additional costs associated with the transaction. Appraisals cost around $400 or so.

5. Get your own, independent appraisal. If you order your own appraisal and your loan is an FHA loan, ask the lender for a list of approved appraisers. Usually the bank will review your appraisal and ask the previous appraiser if they agree or disagree with the newly submitted one.

If the first appraiser disputes your appraisal, the bank may request a third appraisal done by another appraiser, or they may just reject your appraisal.

However, if the first appraiser agrees with the disputes you present, they may adjust their original appraisal and you may get a better price.

If these tactics fail and you cannot make up the shortfall in the appraised value, you may find yourself moving on. If so, be sure that you were protected by a contingency clause in the sales contract, stating that the transaction can be terminated if the home doesn™t appraise at, or above, the sales price.

If you’re planning to get married and buy a home in Central Ohio, but wonder where your down payment funds will come from… FHA might have a  solution for you!

FHA has a Bridal Registry program  that allows  the money you receive as a wedding  gift to  be used towards your down payment. Just like registering at a specialty or department store, the FHA Bridal Registry program allows you to register with a lender by setting up an account… your friends and family are then able to make gift payments into an interest bearing account on your behalf!

It’s a great program! Not only can your gifts earn interest, but they can be used as a down payment towards an FHA Loan and a new home!

Bridal Registry Guidelines

Bridal Registry Accounts were originally introduced in 1996, but still remain a little known fact when it comes to down payment assistance.  Newlyweds are now able to make deposits on their own from the gifts they receive.

Here’s how it works:

• You will open a savings account at your bank prior to the wedding
• Friends and family will be given the banking information where the gifts will be deposited
• All of the gift funds can go towards the FHA required 3.5% down payment
• Anyone with an interest in the purchase cannot be party to the gift funds (i.e. realtor)
• There is no requirement that you be married prior to closing on your new home

Another huge advantage is that there are no gift letters or other documentation required other than proof of your savings account named “bridal registry account.” It’s that simple!

Founded in 1976 by Irving and Melvin Schottenstein, M/I Homes is now one of the  nation’s largest residential home builders, building in Ohio, Florida, Indiana, Illinois, North Carolina, Maryland, Virginia, Texas,  Delaware, and Washington DC.   M/I Homes has been the leader in new home sales for more than 25 years, and they are ranked number one in customer satisfaction by J.D. Power and Associates.  

M/I Homes is  dedicated to building homes of uncompromising quality, innovative design and enduring value in the best, most desirable locations possible.   To put it simply,  they care about  their homebuyers and this “we care” philosophy is instilled  in every associate at every stage of the homebuilding process.  It’s what  they believe and it’s how  they run their  Company.

That’s why we build homes for every taste and every stage of life from the first-time buyer to the empty nester.

That’s why, for more than three decades and more than 78,000 customers, home is a two-letter word: M/I ®.

It’s why we instituted our unique Confidence Builder Program with its checks and accountability features that assures you that you’re truly getting a better home.  And you can see it for yourself every step of the way.

Our commitment to caring continued with the addition of Professional Interior Designers and Design Centers, where your vision can be nurtured with the vast array of options and choices that make your new home a perfect reflection of your dreams.

It continues with Energy Star ®.  Every M/I home is 100% Energy Star ® Certified and that means a lot more than the Energy Star ® appliances we install.  It means that we strictly adhere to the rigorous Energy Star ® construction standards that only 20% of new homes built in America today meet.   The result is a home that saves as much as 30% on energy bills when compared to a house built to code.    And while you’re saving money, your home is also saving valuable resources for the good of our planet.

It even extends to this website, where you can use the “My Favorites” and Envision features to review designs, compare floorplans, communities and build your own file cabinet of favorites.   It makes home shopping fun, comfortable and as convenient as possible.

While other builders may offer similar home styles, or build in neighboring locations, our personal pride, dedication to superior craftsmanship and commitment to homeowner service are uniquely our own.   Our reputation is something we’ve earned, one home at a time.   With each new home we work to strengthen the important bond of trust that unites us with our homebuyers, because we know our greatest asset is a satisfied homeowner.

Everything we do is with one purpose in mind: to provide you with a home of your own, just the way you dreamed it.   It’s why more and more people gravitate to our higher standards and move up to M/I Homes.

M/I  Homes is an Accredited Business with the Better Business Bureau (BBB) with an A+ Rating.

Collections:

M/I  Homes offers  close to 70 different  series  of homes to accommodate every buyer!   Each series offers different amenities, features, selections, floor plan, price range and location.   So whether you™re  a First-time homebuyers, Move up buyers, Buyers looking to downsize,  or buyers looking for a maintenance free lifestyle,  M/I Homes  has plenty for you to choose from!

Communities:

There are 13 locations in North Columbus.   The communities are located in: Olentangy Schools, Delaware, Big Walnut, and River Valley Highlands Schools.

There are  9 locations in East Columbus.   The communities are located in: North Fork Schools, Licking Heights, Reynoldsburg, Southwest Licking, Pickerington, Columbus, Lancaster, Canal Winchester and Groveport Schools.

There are  4 locations in South and West Columbus.   The communities are located in: Teays Valley Schools, Southwestern, Hilliard, Marysville, and Columbus Schools.

If you are a buyer considering a new build inventory home or if you™d like to select a lot and build a custom home please, call  us today!  Our team of experts will assist you everystep of the way   and we offer all of  our client™s one stop shopping.   Furthermore their is no cost to you for our service as the builder covers this expense!   Call me today at 614.332.6984  to get started!

Dominion Homes has been building homes in Central Ohio for over 50 years.   Today, Dominion Homes is a leading homebuilder in Columbus Ohio, as well as Louisville and Lexington Kentucky, and is among the top home builders in the country.   Their priority is and always has been to construct the best homes in the best communities for their customers, to provide great service, to be a leader in innovation, and to be a good neighbor.     It is this commitment that ensures their continued success in building affordable, high-quality homes.

Dominion Homes carefully plans their community™s years in advance, selecting convenient locations throughout Columbus and Central Ohio.   In doing so, they keep in mind all the things that are important to homebuyers.   Their communitis are centrally located nearby shopping, dining, entertainment and good schools.  Lovely streetscapes and open green spaces to welcome you home.   And lots of choices in home designs.

Dominion Homes features high-quality products from some of the Nation’s top brands.  Dominion is a home builder constantly striving to bring their customer’s quality they’ll love – at a price they can appreciate.  From name brand stylish state of the art appliances from companies like Whirlpool and Maytag, to energy efficient materials including windows and doors from Jeld Wen and  premium cellulouse insulation from Nu-Wool  that is guanteed to save you 40% on your energy bills.

Dominion is a home builder for every lifestyle.   So whether you™re looking to move up to a luxury home, planning to downsize and simplify, or you™re finally ready for your very first home, we have plenty of home collections and unique floor plans for you to choose from.

At Dominion,  they strive for legendary customer service.   From  their friendly, knowledgeable sales representatives, to  their dedicated and talented Construction Superintendents, and on to  their ever-helpful Customer Care team (just to name a few), you™re in good hands before, during and after the sale.    Their goal is for you to become a customer for life.    

Dominion Homes is an Accredited Business with the Better Business Bureau (BBB) with an A Rating.

Collections:

Dominion Homes offers 6 series/collections  of homes to accommodate every buyer!   Each series offers different amenities, features, selections, floor plan, price range and location.   Sp whether you’re  a First-time homebuyers, Move up buyers, Buyers looking to downsize,  or buyers looking for a maintenance free lifestyle, Dominion has plenty for you to choose from!

Click here to view the Full Collection of Dominion  Homes

Communities:

There are 10 locations in North Columbus.   The communities are located in: Olentangy Schools, Delaware, Big Walnut, and River Valley Highlands Schools.

There are 17 locations in East Columbus.   The communities are located in: North Fork Schools, Licking Heights, Reynoldsburg, Southwest Licking, Pickerington, Columbus, Lancaster, Canal Winchester and Groveport Schools.

There are 15 locations in South and West Columbus.   The communities are located in: Teays Valley Schools, Southwestern, Hilliard, Marysville, and Columbus Schools.

If you are a buyer considering a new build inventory home or if you’d like to select a lot and build a custom home please, call  us today!  Our team of experts will assist you everystep of the way   and we offer all of  our client™s one stop shopping.   Furthermore their is no cost to you for our service as the builder covers this expense!   Call me today at 614.332.6984  to get started!

The central Ohio housing market was active last month as more homes were put on the market and in contract compared to last year. There were 2,610 homes for sale that went into contract (but haven™t closed) which was up 44.8 percent over the 1,803 homes put in contract during May 2010 according to the Columbus Board of REALTORS ®.As for inventory, there were 3,723 homes added to the market in May 2011, up 10.6 percent from the 3,366 new listings during the same month one year ago.

In contracts and new listings are both important housing market indicators, having such strong increases in both areas is a healthy sign for the central Ohio housing market.

Currently, there are approximately 15,146 residential homes available for sale in the central Ohio area “ 12,322 single family homes and 2,824 condominiums.

Home prices continue to inch up, with May™s average sale price up 2.6 percent over April. However, May™s average sale price of $158,191 was down 4.7 percent from the same period in 2010.

Homes closed last month reached 1,875, up 15.7 percent over April home closings, but were down 25 percent from May of 2010.

May of 2010 was a busy month for home sales as so many buyers were on their way to the closing table after meeting the home buyer tax credit deadline. But sales are up over 2009 when we were in the midst of the first round of home buyer tax incentives which is yet another positive sign.

The cliché says that there has never been a better time to buy.   The hard data in the housing affordability index confirms that.   The affordability index, which takes into account median income, median home price, and mortgage rates, has been bouncing around in the 180 to 200 range since the beginning of this year “ the highest reading since the index was first used in 1971.

Click here  to view the May sortable housing market report by area.
Click here  to view the entire central Ohio Local Market Update.
 
The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, Muskingham, Perry and Ross Counties.

Click here for more information about the central Ohio housing market.

To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington

Roughly forty percent of the homes offered for sale in today™s market are short sales and foreclosures!  Distressed properties are well known for their value, but they also have a reputation for transactional snafus, last-minute surprises and long, drawn-out escrows.  While many inexperienced  agents advise  avoiding these properties altogether,  a better option is to find a short sale specialist  and get  educated about the most common  issues  associated with  these deals, and how to go about  avoiding them.

1.    Drawn out  escrows…  Processing delays.  When you™re buying a home (or selling one, for that matter), time is absolutely of the essence.  And buyers reasonably expect that the big time  drain in real estate is in the house hunting process itself;  as once you find a home you want to buy and the seller agrees to your price and terms, things should move pretty quickly, right?

When it comes to bank owned distressed property sales this isn’t always the case and in most instances  these transactions take anywhere from a few days to a few weeks longer than œregular sales, because of the extra signatures, supervisor-level approvals and/or investor involvement required to seal the deal.  Banks don™t have the same sense of urgency individual home sellers do, and it™s not uncommon for the people who need to sign on the dotted line to be on vacation or scattered across the country, adding days™ or weeks™ worth of time to the escrow.

And short sales are also an entirely different animal when it comes to  processing timelines. While a standard sale from an individual seller to an individual buyer might take 45 days from contract to closing, a short sale  can take anywhere from 45 days to  3  to  6 months to get the deal closed. (your agent should be able to procure an estimated processing timeline from the listing agent, however, if  your agent is a short sale specialist they should have an  idea of  the average  short sale processing timeline for the bank  involved)  

Avoid  frustration by  expecting your escrow to run long, and being pleasantly surprised if it doesn™t.  Expectation management is everything. Make sure you take these extended timelines into account when you™re working with your mortgage broker on the issue of when to lock your interest rate, and how long your rate locks will last. You might even need to plan on and/or set aside an allowance for the cost of extending your low interest rate, if rates are rising rapidly during the time you™re waiting for the deal to be done.

2.  Bank won™t take lowball offer.  Banks owe their shareholders and investors a duty to get as much as they can for these properties. Just because you see it™s on the market and listed as a short sale or a foreclosure doesn™t mean they™re going to give it to you for a fraction of its worth. The bank™s goal is to get a purchase price as close to the home™s fair market value, as determined by the recent sales prices of similar, nearby homes, with some adjustments made for the property™s condition. Fact is, many banks would rather see the listing agent reduce the price by a moderate amount, and wait to see what offers come in, than to accept an offer 30 percent below the asking price just because there are no other offers on the table. Working with an agent who specializes in short sales and foreclosures is key to snagging the best deal as these agents will have insight into realistically what the listing bank might accept, and how to influence their expectations. That said, their are ways of influencing the bank’s value assessment to the buyer’s benefit and an agent specializing in short sales will be able to best assist you in doing this and securing the best deal possible on the property.

Avoid the  frustration by  working with an agent who specializes in short sales and foreclosures  and one who can assist you in making a realistic offer.  Sit down with your agent, review the ˜comps™ and make a smart offer that reflects a good value for you, is within your budget and is not bizarrely out of the realm of the fair market value of the property.

3.  Last minute postponements/cancellations. These transactions have an uncanny way of being delayed at the last minute through no fault of the wanna-be buyer, and in some instances they can be  rejected entirely. You signed docs yesterday, just  loaded up the moving truck, only to  receive a  call from your broker that the deal didn™t close because the  title company which was selected by the bank  failed to have a single sheet of paper signed  (it happens). Or, you™ve been in contract (with the seller) on a short sale for  three months, and the bank refuses the sale entirely because the seller refuses to  contribute $1,000  into the deal to offset the bank’s loss, this  despite their having a flush savings account.

Avoid the  frustration by staying as flexible as possible with your moving plans as long as possible. Best practice is to plan on some overlap between the time you can be in your last place and your scheduled move-in date. Also, if you™re in contract on a short sale, you should take the point of view that you don™t have a firm deal until you get the bank™s approval of the transaction. So don™t even think about starting to make moving plans or paying for home inspections and appraisals until you know the bank has  signed off on  the deal and that the purchase price and terms they™ve approved work for both you and the seller.

4.    Bank™s black out. Make an offer on a normal home and you™re likely to know what the outcome will be within a few hours or a few days, at the outside. If things take longer because the seller is out of town or  such, the listing agent tells you that, and you at least know what™s going on.

Make an offer on a bank-owned property or a short sale?  It™s a crap shoot “ could be days, but could also, easily, be weeks or months before you know what™s going on.  And no amount of calling, pleading, prodding or nudging is likely to get you much information on how your offer or the seller™s short sale application is being handled or what (if any) progress is being made.  And that œblack out  is very frustrating.

Avoid the  frustration by  continuing your house hunt until you have an answer back.  Maniacally pestering the listing agent for answers or harrassing your buyer™s  agent into spending hours on hold with the bank is highly unlikely to get you any insight. (With that said, it does make sense for your agent to check in regularly “ sometimes even daily “  with a short sale or REO listing agent to stay updated on any developments with the property and to make sure your offer/transaction stays in the front of their mind.)

Most of the angst in these situations arises when a buyer feels they passed on properties that would have really worked for them when they pinned their hopes on a distressed home.  You can only control your efforts and activities, not the bank™s.  So, consult with your own broker or agent about staying proactive in viewing and even pursuing other properties until you have a firm œyes from the bank on your short sale or REO offer.    Until that time, and usually for a short time after you get the bank™s approval, you have the right to back out of the transaction if you need to (make sure your broker briefs you on precisely when your right to rescind your offer or exercise contingencies “ i.e., bail “ will expire).

5.  Double standards. In a œregular equity sale with no bank involvement, both buyer and seller are obligated to meet various timelines.  Seller has to provide disclosures by X date, open the property to inspections “ with utilities on “ by Y, and close and move out by Z.  REO and short sale buyers, on the other hand, are often dismayed to find that even though the bank might take weeks or months to sign or handle its deliverables, the bank will insist that the buyer show up, sign or send a check for example when requested and in a timely manner.

Avoid the  frustration by  chalking it up to the (admittedly irritating) way things are “ the price you pay to buy from the bank.  Realize that working with the bank on the bank™s terms is unavoidable when you buy a distressed property. Then, go into the deal with realistic expectations “ including the expectation that the bank will drag its feet, despite expecting you to keep every deadline “ and you™ll be less frustrated, and less likely to make poor decisions out of frustration.

Also, make sure you do respond in a timely manner to the bank™s requests and your obligations under the contract.  I™ve seen banks capitalize on buyer delays in returning signatures and removing contingencies to accept higher offers they received in the interim.  Don™t lose your home on a technicality because you assume that the bank™s lackadaisacal timelines apply to you as well.

If you™re a  buyer, or an  investor, interested in purchasing short sale or foreclosure properties,  please give us a call or send us an email as we™d be happy to assist you by sending over a an inventory of properties matching your criteria.    

The Opland Group  Specializes in  Real Estate Sales, Luxury Home Sales, Short Salesin;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights    Granville    Grove City    Groveport    Hilliard   Lewis Center    New Albany    Pickerington    Polaris    Powell      Upper Arlington    Westerville    Worthington  

Columbus / Central Ohio home sales in March outpaced the previous month by almost 32 percent bringing the total number of homes sold during the first quarter of 2011 to 3,678 according to the Columbus Board of REALTORS ®.

The 1,487 homes sold last month was 31.8 percent higher than the previous month™s sales of 1,128. Year to date sales of 3,678 lag 2010 by 7.9 percent, but are still 6.9 percent ahead of the 2,178 homes sold in the first quarter of 2009.

It’s important  to keep in mind that 2010 home sales were significantly impacted by the second set of home buyer tax credits, by comparison, March closings are actually 9.3 percent higher than homes closed in March of 2009 when the first round of tax credits was available.

In addition, 2,512 homes were put in contract last month touting an 11.5 percent increase over the 2,252 contracted sales in March of 2010.

Homes in central Ohio this year have sold for an average of $143,773, down 3.7 percent from the average sale price in 2010, but up 3.8 percent from the average sale price in 2009. The average price of a home sold in March was $144,975, up 2.1 percent from the previous month ($140,770).

The number of homes listed for sale last month (3,886) dropped almost 22 percent from the previous year (4,972) bringing the total inventory of homes available for sale in central Ohio to 14,370, down 22.3 percent from one year ago.

Home sales follow the simple economic concept of supply and demand, when the supply is higher than the demand, the product, in this case a home, is subject to sell for less. So a decrease in inventory is a positive for our market.

The other positive is, of course, last month™s drop in unemployment to 7.6 percent – the lowest point since January 2009.

There were 2,280 homes listed for sale in Franklin County last month. The surrounding counties of Delaware and Licking saw 316 and 302 new listings respectively.

Click here  to view the March sortable housing market report by area.
Click here to view the entire central Ohio Local Market Update.

The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, Muskingham, Perry and Ross Counties.

Click here for more information about the central Ohio housing market.

To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington

Home sales statistics for central Ohio in 2010 showed marked improvements compared to previous years according to the Columbus Board of REALTORS ® (CBR).The average sale price of a home in 2010 was $158,893, just 0.6 percent lower than the average price of homes sold in 2009. However, the average price of homes sold in 2009 was 2.4 percent lower than 2008 which was 5.1 percent lower than 2007.

Our market saw average sale price increases for eight of the 12 months of 2010. As we™ve experienced annual decreases in our average sale price since 2005, we see ending the year just half a point lower than 2009 as a positive for central Ohio homeowners. Furthermore, these numbers are significantly skewed due to the increased number of distressed property sales, including short sales and foreclosure listings. These distressed properties sell on average for 10-30% below market value which in turn is downwardly skewing these  figures, which are likely to jump significantly as the number of defaults continues to decrease and as these distressed inventories are sold off.

The 1,460 homes sold in December 2010 is just 0.3 percent lower than the number of homes sold in December of 2009. Annual 2010 home sales (19,676) finished 2.8 percent behind 2009 (20,235).

There™s no question the home buyer tax credits had a significant affect on last year™s home sales, providing home buyers with a substantial monetary incentive really helped to energize the market in the first half of 2010.

Homes in contract (which are expected to close in January or February) are up slightly from the previous year suggesting that home sales in the first of the year could be strong.Homes spent an average of 90 days on the market, a reduction of seven days from the average time to sell a home in 2009.

In December 2010, the month’s supply of homes was down to 9.93, the lowest since last June. Month’s supply is the ratio of inventory to sales which takes into account both supply and demand. A healthy market has a 6.5 to 7-month supply of homes, meaning if no new homes were added to the market, it would take about 6.5 or 7 months to sell all the available homes.

The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, and Ross Counties.

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington

Homeowners looking to lower their monthly mortgage payments and save some on interest may be able to do so without all the hefty fees and daunting credit requirements of refinancing.

A little-known strategy, called œrecasting, or œre-amortization, is available through some mortgage lenders and servicers. This involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal, so your new monthly payments decrease slightly and you save on interest paid over the life of the loan.

Lenders typically charge an administrative fee of $150 or more for this service, though borrowers are not required to pay closing costs or submit to another credit check, because they are not asking for a new loan.

Recasting works well for those unable to qualify for refinancing amid the ever-toughening credit guidelines ” perhaps because they are self-employed or have less-than-stellar credit ” as well as for those with extra cash,  perhaps a year-end bonus or proceeds from a  tax return.

Although the term œrecasting is often used by the mortgage industry to refer to interest-rate resets on adjustable-rate mortgages, here the interest rate and loan term stay the same.

Here™s how it might work. Let™s say that as of late December, you had just over $230,449 of principal left on a 30-year fixed-rate loan for $300,000 taken out at 7.93 percent in 1995. You have been paying just under $2,187 a month in principal and interest.  But if you put in $20,000 toward that remaining principal and asked your lender to reamortize your payments over the remaining 15 years on the loan, your monthly payment would drop by $184, to around  $2,002. Putting in $100,000 would save $945  a month and bring payments to $1,241.

Making extra payments toward the principal while not asking the bank to recast a loan keeps monthly payments the same and merely shortens the time it takes to pay off the loan.

There are a few caveats to recasting, however. The first is that you may need to have a large sum on hand. JPMorgan Chase, for example, charges a $150 fee and requires a minimum $5,000 payment toward the principal.

Another issue is having a lender, or loan servicer, that offers the service. And even those that do may impose restrictions. JPMorgan Chase and Bank of America exclude loans backed by the Federal Housing Administration and the Department of Veterans Affairs, and loans that were sold off and securitized may also need investor approval.

While few if any lenders advertise recasting, they are trying to become more customer-service-oriented, and they will do it on a case-by-case basis. Interested homeowners should contact their lender™s customer service department for additional information.

Lenders, who would probably rather earn thousands of dollars in closing fees from refinancing your loan, are not obliged to recast mortgages. And certain types of mortgages, for example interest-only and adjustable-rate loans, usually aren™t eligible. The borrower will also need to have been current with all mortgage payments to qualify.

That said, if your interest rate is 5 percent or lower, it may not make sense to recast  your loan,  as the  additional cash could likely  be put into an investment with a higher return.

Home Values  Up 3.8% Year Over Year

November 2010 saw fewer home sales in Columbus and central Ohio than the previous year but showed an increase from 2008. According to the Columbus Board of REALTORS ® (CBR), the 1,325 residential home sales last month was almost 28 percent lower than the 1,839 home sold in November of 2009, but still 15 percent higher than November of 2008.

Sales in November of 2009 were inflated as they reflected buyers trying to close on a home purchase before the expiration of the first 1st-time home buyer tax credit. Although the tax credit was extended (and expanded) in early November, many buyers had rushed to put a home in contract prior to that decision was made to extend the tax credit  deadline.

As November of 2010 and November of 2008 were both months unaffected by a tax credit incentive, it™s a much better comparison.

Homes in contract (which are expected to close in December or January) followed the same behavior as sales “ down from 2009, but up from 2008. There were 1,100 homes put into contract last month versus 1,234 last year and 1,020 in November of 2008.

The average sale price of a home last month was $151,096, up 3.8 percent from the average price of homes sold in November of 2009. Year to date home sale prices in 2010 are showing no change from 2009.

Home sales for eleven of the twelve months of 2010 are slightly lower (3.0 percent) than January through November of 2009.

As home sales have been decreasing annually since the housing boom, the fact that 2010 is no different comes as no surprise, however, what’s different is the previous years showed a much greater decrease for this period – anywhere from -4.2 percent to -13.3 percent. This is actually the lowest decline since 2005. Click here for Ohio home sales statistics
Click here for the national home sales release

The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, and Ross Counties.

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.
To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington