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.

In terms of the back property taxes owed on a home that is sold through a short sale,  the bank will typically cover this expense and seller’s should be free and clear of this liability  going forward. In most states governmental property taxes convert into a lien on a property as soon as they are due — even before they fall behind, in most areas. That just means that your escrow provider and/or title insurer have to clear those tax liens, making sure they are paid up to the date of closing, before they are able to transfer clear title to the buyer.

In the average short sale situation, what happens is that the seller’s bank(s) has to direct some of the proceeds  from the sale of the home  to cover; any back taxes on the property, agent commissions, transfer taxes and such before they can apply the rest of the sale price to cover the outstanding mortgage balance(s). When escrow closes, and I mean starting the day of or the day after, the buyer is responsible for property taxes incurred from that day forward.

In some transactions, though, there are back expenses that are not extinguished by a short sale.

The most common are homeowners association dues that are not paid off or waived in the short sale. Some HOAs will continue collection efforts on back dues — not as a lien against the property under its new ownership, but as a personal debt of the former homeowner.

The other are second or even third mortgages in which the lender expressly agreed to let the short sale go forward on the condition that the seller or former homeowner pay some or all of the outstanding balance over time and did not agree to a full release.

Such terms would be expressed and  would be pursuant to  the short sale approval agreement, so you would be made aware of  such obligation if the lender does not agree to a full release.

Now to the question of paperwork. At or just after closing, depending on where you live, you should receive a document on legal-sized paper called a HUD-1 closing statement. As with any real estate transaction, hang on to that just in case you don’t get any additional paperwork from your lenders.

To the extent that some portion of your mortgage balances were forgiven by the banks, that gap — that deficiency — is normally subject to income taxes. It’s called cancellation of debt income, or CODI.

This sort of “income” (essentially a loan that was forgiven) is usually documented by the bank sending you a Form 1099-C, in January — just as if you’d earned that income. So, you might see two of these statements in the mail early next year.

I say “might” only because some of the mortgage lenders that are no longer operating as banks or lenders aren’t sending these statements out anymore. In that event, your HUD-1 might end up being the only documentation you receive.

That said, if you close your short sale before January 1st, 2012  chances are you’ll be exempt from income taxes on your CODI “income” under the Mortgage Forgiveness Debt Relief Act of 2007. The act applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2012 (it is believed that  this relief will  be extended  however,  at the time this  blog posted was written  an extension has  not  yet been signed into law).

You’ll still need to let the IRS and your state tax agency know of your short-sale specifics, but you’ll be able to invoke the terms of the act (most states now have parallel provisions) to avoid being charged with income taxes on the forgiven debt, assuming the home was actually your primary residence, your mortgage debt was $2 million or less, and certain other guidelines are met.

Visit this dedicated page on the IRS website for more details, and best of luck on your personal financial recovery endeavors.

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

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

Loan servicers / Lenders will have 30 days to send a borrower a short-sale agreement that includes the list price or acceptable sales proceeds under recent changes made to the Home Affordable Foreclosure Alternatives Program (HAFA), aimed at distressed borrowers who don’t qualify for other government loan modification and foreclosure alternative programs.

Once a sales contract has been initiated, loan servicers then have 30 days to approve or reject the short sale transaction.

The stricter timelines are believed to help speed up the short sale process, which has faced numerous complaints for how long it takes lenders to review and approve short sales often causing buyers to walk away in frustration.

The stricter timelines were a part of several revisions the Treasury Department recently announced to it’s HAFA program–the second major revision to the program since its launch in 2009.

Another big change: Loan servicers / lenders will no longer be restricted on paying second-lien holders, allowing them more freedom particularly when dealing with second-lien holders when borrowers owe less than $100,000. Loan servicers used to be restricted to paying second-lien holders no more than 6% of outstanding loan balance (with an overall limit of $6,000) in exchange for releasing subordinate liens. Second-lien holders have been another big obstacle to completing short sale transactions especially when most second are recourse liens and these lien holders in most instances have the option of selling these debts to collections companies for 8-10% even after the home has gone through foreclosure.

HAFA’s new directives also now forbid loan servicers from deducting vendor expenses from commissions paid to real estate brokers.

The rules are effective Feb. 1. It does not apply to mortgages owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency such as the Federal Housing Administration (FHA). See FHA Short Sales.

If you™re facing foreclosure you™re facing some very  important decisions. We want you know you™re  not alone and we are here to help with any questions you may have to assist you in making the best decisions for your situation. There is no charge for this service and we are happy to help! We offer confidential and  professional real estate advice.

Contact us

As local  real estate short sale specialists  we can help you make sense out of your options. If you are a homeowner who is having trouble making your mortgage payment and are interested in exploring your options including the  listing of your home as a short sale, please give us a call today at 614.332.6984. We™re here to help you!

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

Columbus OH Short Sales,  Columbus OH Realtor,  Short Sale Specialists,  Short Sale Process,  Ohio Foreclosure Process and your Options,  Avoid Foreclosure,  Short Sale vs Foreclosure,  What to do when you owe more on your home than it™s worth,  Loan Modification,  New Albany OH Realtor,  Powell OH  Realtor,  Dublin OH  Realtor,  Luxury Home Specialist,  Luxury Real Estate,  Buying a Short Sale or Foreclosure,  How will a short sale affect your credit,  Understanding Short Sales,  Bank of America / Countrywide  Short Sales,  JP Morgan Chase  Short Sales,  Wells Fargo  Short Sales,  IndyMAC  Short Sales,  Citi Mortgage  Short Sales,  PNC Short Sales,  National City Short Sales,  Home Affordable Alternative Program (HAFA),  What™s My Home Worth?

New report tells the tale of foreclosures in central Ohio

The Columbus Board of REALTORS ® (CBR) has just released a brand new report that provides detailed information on local foreclosure, short sale and bank owned housing activity.

œAs foreclosures have been a concern for the entire country over the last few years, we™re often asked about foreclosure activity in central Ohio “ but it wasn™t available, says Rick Benjamin, 2011 CBR President. œThat™s why we decided to provide this information. Now we can see what™s going on locally with regard to short sale, bank-owned and foreclosed properties as well as see how we compare nationally.

The new Lender-Mediated Properties Report provides an in-depth look at the trends related to traditional and œlender-mediated (foreclosure, lender owned, short sale, HUD and VA) listings sold or put on the market within the Columbus and central Ohio Multiple Listing Service (MLS).

According to the report, lender-mediated listings  are declining. The number of homes in this category dropped 18.9 percent, from 3,372 listings in Q1-2010 to 2,734 listings in Q1-2011. Furthermore, the number of new lender-mediated listings during the first quarter of 2011 dropped 4.5 percent.

œREALTORS ® are seeing a turn-around; fewer distressed homes are being added to the market. The entire country has watched foreclosed properties continue to rise for the past four years. To see the inventory of both lender-mediated and traditional homes decline is a positive sign for the central Ohio housing market, said Benjamin.

During the first quarter of 2011, there were 14,370 homes for sale in central Ohio. Over 11,650 of those listings were single-family homes of which 20.2% (2,358) were considered lender-mediated. Of the 2,700 condos for sale, 13.8%, or 376, were lender-mediated.

The drop in inventory is due in great part to the 46 percent increase in distressed property sales “ from 1,130 sales in Q1-2010 to 1,650 lender-mediated home sales in Q1-2011. Total homes sales last quarter was 3,678, of which 44.9 percent were considered lender-mediated.

Click here  to view the full Q1-2011 Lender-Mediated Properties Report.

If you™re facing foreclosure you™re facing some very  important decisions. We want you know you™re  not alone and we are here to help with any questions you may have to assist you in making the best decisions for your situation. There is no charge for this service and we are happy to help! We offer confidential and  professional real estate advice.

If you are buyer, or an  investor, interested in purchasing short sale or foreclosure properties, again please give us a call as we™d be happy to assist you as well!  

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

Columbus OH Short Sales, Columbus OH Realtor, Short Sale Specialists, Short Sale Process, Ohio Foreclosure Process and your Options, Avoid Foreclosure, Short Sale vs Foreclosure, What to do when you owe more on your home than it™s worth, Loan Modification, New Albany OH Realtor, Powell OH  Realtor, Dublin OH  Realtor, Luxury Home Specialist, Luxury Real Estate, Buying a Short Sale or Foreclosure, How will a short sale affect your credit, Understanding Short Sales,  Bank of America  Short Sales, JP Morgan Chase  Short Sales, Wells Fargo  Short Sales, IndyMAC  Short Sales, Citi Mortgage  Short Sales,  PNC Short Sales, National City Short Sales, Home Affordable Alternative Program (HAFA), What™s My Home Worth?

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

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

Q: From what I have read, Sold “As Is” can cover anything from minor defects/repairs that the seller is unable/unwilling to do or can be major problems. What can a prospective buyer do to protect themselves?

A: Here’s the deal: An “as-is” sale really does only this: It informs the buyer that the seller has no intention of doing any repairs to the property, and puts the buyer on notice that he/she should have the property inspected thoroughly, as the buyer will be taking possession of the property in its current state.

Many sellers and agents insist on an as-is sale, whether the property is in pristine condition or is a major fixer. Short sales and bank owned properties (REO Listings) are also typically sold as is.

Now, in many jurisdictions, the laws and/or standard forms used in the state convert “as-is” into what we call “as-is/as-disclosed.” This is the case where the contracts and law of the state (a) require that a seller disclose any “material” defect of which he knows or should know, and (b) the contracts popularly used in the state or region incorporate the sellers’ property disclosures into the contract.

In an “as-is/as-disclosed” jurisdiction, the seller has the duty to inform the buyer of any problems or issues with the property that would make a difference in the decision-making of a reasonable buyer; that can help the buyer decide (a) whether she’s interested in the property, (b) for what price and on what terms — considering the repairs they may have to do later, and (c) which inspections to obtain to fully understand the property’s condition.

The first step a buyer can take in protecting themselves in an as-is sale is to fully read and understand the contract and the seller’s disclosures, including asking your broker, agent or attorney to explain what disclosure duties the seller owes you, in your state. Property Disclosures should be carefully reviewed, and any defects or work that the seller reports having done to the property should be investigated. Ask questions and request copies of work permits or warranties and generally get an understanding for what work this seller has had done to the home. If the seller was not the first owner, it can also be revealing to ask if he still has any of the disclosures from the preceding owner.

The second step in protecting yourself in an as-is transaction is obtaining inspections from a qualified inspector. You’ll want to  have the property thoroughly and professionally inspected before the end of your contingency or objection period. At the very least, get a home inspection and any “special inspections” the general home inspector recommends. Ask your agent for referrals and hire a certified and/or licensed home inspector — not your cousin who happens to be really handy.

Consult with your agent and use your judgment. We generally advise our clients to have an overall  home inspection, and a pest inspection. Of course, if the seller had just obtained a pest inspection from a well-respected inspector, we might forgo those.

In an as-is deal, inspection reports serve less as your launch-pad for a repair request than as your post-closing home improvement store shopping list. They are a way to begin understanding what needs to be done so you can get estimates and bids on the work before finalizing the purchase of the home. Think of inspection reports as a tool for making sure you are completely comfortable taking the home in that condition. If you are not, the reports can serve as an alert that you should back out of the deal or renegotiate with the seller (perhaps for a lower purchase price), given the defects revealed by the inspections.

Read and follow up on the inspectors’ written or digital reports by getting any further information indicated from the seller, obtaining “specialized” inspections as recommended, and getting bids for repairs needed before the expiration of your contingency or objection period.

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

Search for Columbus Ohio Homes – Search the Columbus MLS

There was a time when a price reduction tainted a listing. That was several years ago when listings in many areas sold quickly. At that time, it was assumed that something was wrong with a listing if it needed a price reduction.

In today’s market, price reductions are common. Sometimes, sellers aren’t content with listing unless they try a price that’s higher than what the comparable sales data indicate. Or, a price reduction could be necessary simply because it’s difficult to price homes in a changing market, particularly if the local housing stock is varied in size, condition, age and style.

It’s easier to establish the current market value of a home in housing developments  in which  the houses are similar to one another, particularly if there are a number of recent comparable sales. It’s hard to price right for the market in any neighborhood if few or no homes have sold recently.

It’s best to list your home at a price that buyers will perceive as a good value. Overpriced listings help sell the accurately priced homes in a community while these listings themselves sit on the market.

Today’s buyers are cautious about buying. Some are back on the fence waiting for a clear sign that the market has hit bottom and that prices won’t drop further. Although some markets appear to have stabilized, there is no guarantee that prices won’t slip. Buyers who realize that they can’t time the market and who want to take advantage of low interest rates are moving ahead with their home search. They are very selective, are buying for the long term, will wait for the right home and won’t pay over market value.

HOUSE  SELLING TIP: As difficult as it may be for sellers to consider a price reduction after only a couple of weeks on the market, this is often the best strategy. Buyers and their agents focus on the new listings. If you bring your home on the market priced too high, but it’s otherwise a nice house in good condition and in a good location, a price reduction early in the marketing period is likely to attract the attention of agents and buyers who still have the listing fresh in their minds.

Make sure that your agent gives your listing a renewed marketing effort to generate enthusiasm about the property. More than 85 percent of today’s homebuyers use the Internet to search for a home. Some sign up for services that notify buyers when a new listing is submitted to the multiple listing service (MLS) and when there is a price reduction or pending sale.

Your agent should schedule an open house for brokers as soon as possible after a price reduction to alert real estate agents who may have missed the price reduction when they ran an MLS update. MLS updates list price changes.

It’s a good idea to have a Sunday open house for the public as soon as possible after the price is reduced. The open house ads for the open house should showcase the price reduction.

Depending on your local market, you may need to lower the price more than once, particularly if you waited months to make a price adjustment. If market values have moved down since you listed, you could find yourself out of sync with the market again. Don’t rely on what your neighbors are asking for their homes. If they aren’t selling, they are probably overpriced for the market. Rely on sales of comparable properties that closed immediately before, or  after you put your home on the market.

THE CLOSING: Ideally, you want to reduce the price before your competition does.

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