Dear Homeowners: Great Real Estate Stats for Fourth Quarter

“In 2017 the average sale price in Central Ohio was $211,482. In 2018, the average sale price was $232,228.” - Theresa Cray

DEAR HOMEOWNERS:

I am writing to you to talk to you about our current housing market. I thought it would be nice to give you a year to date summary. I hope you find the information useful and informative. After you read through, be sure to let me know what else I can do to add value for you. I am writing and speaking to you weekly, so we definitely have time to answer your questions. 25 years of serving, has really given me a broad base to drawn from.

With all that said, here is some good news about our phenomenal City of Columbus, Central Ohio and the broader community. Our city has been growing for the past several decades. It’s a bright, clean, moving into the next phase, city. We now have great downtown housing. The city is doing a lot of revamping in the more Central zones. We are pure and simple, growing! It’s a wonderful time to live and work in our town. We are talking about serious growth. We have 2 Million 78 thousand people in our Metropolitan area. The actual city of Columbus has roughly doubled from approximately 470,000 residents to nearly 900,000 residents.

Let me get into how our growth has impacted our housing market in recent years? Well here are the facts: Housing prices have risen 10% in the past 12 months. Real estate professionals have sold approximately 24,000 homes from January 2018- September 30, 2018. Homes are also selling for 99% of asking price in-spite of the 10% increase in price points. You might ask, what are the real numbers in dollars? In 2017 the average sale price in Central Ohio was $211,482. In 2018, the average sale price was $232,228. We all know this past spring demonstrated very high demand. Creating an overheated market place. Buyers were willing to overpay for property. They were also willing to buy property in less than optimal condition with fewer updates for higher pricing.

The largest segment in this market place are families with children, who need to move just after school is out (now May) and often also have to sell a home. This “frenzy” begins typically early March. It changes, in August and I bet you can guess why? The reason is because the children are now in school and who really wants to have their kids out of school or starting late. As a parent, I surely don’t want to deal with moving after school starts and I definitely want my kids school situation wrapped well before we get through the summer.

In the fall we still have a great market. It is simply not usually the folks with small children. It is more likely people who are relocating, or those who simply are ready to move before the end of the year, or folks who need more space because of a change in family status, or investors who know it’s a good time to sell and folks who are thinking about downsizing into a more appropriate home size for their households. And of course, it is also the millennials who are now ready to buy their first home. The point is there is a market and it is a rather robust market by historical Columbus standards.

There has been a lot of speculation in the news, and other social media discussions. Here is my take, it is too early to tell. With that said the late Winter and early Spring will help us to assess the real truth about where the market is headed. It will also give us a great clue for the 2019 home selling opportunities. I believe we will see more of the same very high demand. I say this for a couple of reason: 1.) What I know for sure is our population is not getting smaller and 2.) Our population is not getting younger. Both of these factors are reasons why people move. Really, when we talk about markets; we are talking about people and their lives. People don’t move because they love to move. They move because they need to move and their lives are changing.

Here at Take a Look we understand the needs of our clients and how important the decision to sell your home is for most people. It is our goal to make your transition to your next home a seamless, well thought out process, with care and concern. I hope you find this information helpful and informative. Let me know if there is anything else I can do for you and your family.

Thanks for stopping by,

Theresa Barron, MBA- Broker -Take a Look Real Estate

How to Find Your Home in 3 Shopping Days or Less

In a seller’s market, purchasing a home requires a different lens through which to see what’s what. Nearly a decade ago, the market was such that buyers almost thought that they could get something for nothing. Just like during the Great Depression, people with a little cash who got their hands on the plethora of cheap houses have amassed fortunes.

But in today’s real estate market, the seller holds the power. They own the small amount of inventory that you will have to compete for, if you really want it. It’s important that a buyer have the proper expectations set in their minds to find a home in 3 shopping days or less. In this article, we are going to explain those particulars.

Number One: Get the right professional

You’ve got to have the right Realtor. It just is what it is. A qualified, professional agent gives you so much access to properties in your city, as well as the conditions and situations that dictate their prices. An agent will help you assess your values, needs and resources to help you find the home that is right for you. But more importantly, an agent is going to make sure that you understand what it takes to be efficient with your time and money, while still beating out the competition. Remember houses are going fast.

Number Two: Know what’s up

Get the scoop on how to operate as a competitive buyer in a seller’s market.  Your agent should first understand 2 very important things: everything that your lender requires to approve your loan and everything that you require to buy a house. Loaded with that arsenal of information, your agent should be expected to do a search on the few homes that should fit your criteria, in the most optimal neighborhood, at a price point you can afford… with an appointment scheduled for you to see the home ASAP!

Number Three: Keep it or throw it

Because of the time constraints that a seller’s market forces on a buyer, you have to understand that there is no time to waste. Therefore, hemming and hawing over houses to the point of analysis paralysis is probably not the best use of your time. You should expect your Realtor to have found the closest matches to your home ideals. So if one of those houses doesn’t have all that you need in a home, don’t ponder it to death. Just throw it and trust that one of the homes on your shopping list will suffice. A good agent makes this possible, if your criteria is realistic.

Number Four: Meet it or exceed it

So once you come across the home that gives you goosebumps, one that has what you want and need, one that comes in a location and price that you can work with, now the next game begins. The rest of the homes on the shopping list should either meet or exceed the one that resonates with you. You see, now you have a standard. The next house that you walk into needs to be as good as or better than the standard. If it doesn’t meet the standard, don’t waste time walking around it, looking through it, and thinking about it. But, when you come across the house that beats them all…

Number Five: Make an offer and keep your fingers crossed

Immediately submit an offer. Know that lowballing in a seller’s market will not get the desired result. In this market, it would almost be considered an insult to waste the seller’s time in such a way. Make it a good offer that’s fair, and make sure that your agent would consider your offer to be competitive.

Keep in mind what your lender allows. The house should be in a certain quality of condition for the lender to approve the loan, and they will conduct an inspection of their own. As long as the seller discloses about the condition of the property, as long as the lender’s inspection goes well, and as long as there is clear title on the property, you won’t have to go back out into the market to shop for more homes.

Number Six: Understand the money

The asking price of the house is not the only price you will need to think about. In this market, seller’s expect what’s called earnest money, which is money that you give in good faith to prove how serious you are about buying the home. It’s typically a check for somewhere between $500 to $2,000. Without out this, the seller will not take you seriously, and probably be annoyed at having their time wasted when they could get a full offer and earnest money from a more serious and education buyer.

You will have to pay a downpayment that’s typically higher in a seller’s market than in a buyer’s market. Depending on the type of loan that you are approved to acquire, this could be anywhere from 3.5% to 20%. And though down payment assistance exists, you may or may not get access to it in today’s market. As well, in a buyer’s market, you were more likely to get sellers to pay closing costs. However, today, buyer’s that expect sellers to pay closing costs can expect their offers to be at the bottom of the stack. Depending on your credit score, some lenders may offer assistance on down payments and closing costs. But, know that this might rest on your budget.

In conclusion...

Agents with Take A Look Real Estate Brokers are trained to take your desires and needs for a home, and the requirements of your lender, and implement them into a plan of action. This plan of action should take 3 days or less to execute, and if done properly, you can boast buying a nice, new home, even in a competitive seller’s market.

If you are in the market for a new home and would like to talk to one of our professional agents, contact us!