Localism: Franklin County, OH

CENTRAL OHIO MARKET REPORT NOVEMBER 2008

Mon, 01 Dec 2008 08:04:05 -0600

632 homes and condos sold in November 2008 in Franklin and Delaware county.

The average list price was $166,848 while the average sold price was $154,588. Days on market was 96.

This compares to 1223 units sold in November 2007. the average list price was $181.097 while the average sold price was $173,962. Days on market was 101

So , the number of units sold was down 48.3%. the average sold price was down 11.4%

Lease Purchase Pitfalls

Sun, 30 Nov 2008 08:10:12 -0600

Submitted by Vicki Owens, ABR, GRI, Andy & Associates, Realtors

Allow me to begin with a story: Mary Jane and Doug are really nice people. They have 3 children and have relocated into a new area for Doug's work nearly 2 years ago. When they moved here, they had a home to sell back home and decided it would be best to rent an apartment until their home sold. There home did sell about 4 months ago and they have a little money in the bank saved for a down payment.

Over the coarse of the year, they had to trade both of their older cars for newer ones because they had a longer commute to work and their vehicles were starting to show a lot of wear and costing a lot for repair. In addition, 5 months ago, Mary Jane got a new job and used some of their credit cards so that she could have a new wardrobe for her improved position with the employer. Then Christmas came and went and they charged some toys for the little ones and gifts for their families.

About a year ago, they began looking to buy their new home. They found a home that they absolutely loved. They wanted to make an offer and went to talk to some mortgage lenders to find out what their payments would be. After meeting with several lenders who had looked at their credit, they realized that their credit scores were lower than they expected. The debt they had taken on and a few late payments on those credit card bills had put them in a position that they could not quite afford the house they loved. Houses in a lower price range that were available just were not large enough for their family or were in such poor condition that they could not move right in. Both working, they just didn't have the time, skill or cash to rehab a home. Needless to say, they were very disappointed. They would have to wait awhile longer and work on their credit.

While driving around on a Sunday afternoon, they spotted a beautiful home with a sign that stated "For Sale By Owner Lease/Purchase Available Bad Credit OK". They called the number on the sign and the owner came and showed them the home. It was just stunning. The owner, Jack, had recently divorced and was struggling with his home improvement business and could no longer afford to live in the home. Mary Jane and Doug knew that this was much more home than they would be able to afford to buy outright, and signed a lease purchase agreement with the owner feeling they were getting a great deal. They could paint, improve the home, do anything they wanted to do because they had a purchase agreement with Jack.

They used all but $1000 of their savings to give the owner a $5000 down payment to move in. They agreed to pay Jack $1700 a month for the home. They moved in and their was plenty of room for the kids, their things and Doug even bought the new big screen TV he's wanted since they moved to town. Mary Jane got some beautiful light fixtures that they installed in the home and decorated the kids rooms so cute. Oh how they just loved this house!!

About 6 months after moving in, the sump pump in the finished basement stopped working during heavy rains. Doug opened an account at the home depot, and replaced the sump pump, the damaged carpet and trim and ended up with quite a bill to pay for the repairs.

In the 7th month, Mary Jane noticed they were starting to get urgent looking mail for the owner of the home, Jack. She called him, but had a hard time reaching him as his cell phone was disconnected. When Jack came to collect their payment for month 8, 3 weeks later, he was quite distressed and told the two that he had been unable to pay the mortgage for several months. His divorce was finalized and he had big child support payments now. He explained, nearly in tears, that the bank may foreclose on the home and they will have to move out. Jack apologized profusely to Mary Jane and Doug and drove away.

Stunned, Mary Jane did not know what to do. She was in a panic. She made a call to her real estate agent that they had dealt with when they were looking for homes previously and asked her what to do. The agent advised Mary Jane to contact an attorney. Doug was just plain mad. They had paid and paid and even had debt on the home, done all of these repairs and improvements, and for no fault of their own had to move out? Mary Jane called Jack's mortgage company to see if maybe they could assume toe loan or make up payments, and found out that even the property taxes were behind and that and homeowners insurance needed to be caught up. With late fees all to the tune of over $20K!! They knew there was no way a mortgage lender would approve them for a loan on this home, it was worth way more than they ever shopped for. They started to look for places to move.

And if you are on the edge of your seat to find out what happened. . .well, it's a fictional story, but points out what a major pitfall can be to the lease purchase option. What if Mary Jane and Doug just decided one day they didn't really like the house enough to buy it? If they were leasing from an investor or builder, the builder may say fine, move right out. And the owner of the home may never have had any true intention of selling, just renting with a big deposit up front, knowing they would have to go in and clean it up to do it all again. Again, Mary Jane and Doug are vulnerable as they have no way to get a refund of the down payment or for any improvements they added to the home without paying attorneys and going to court. .

In lease purchase you don't own it until the deed is in your name. Most of the time, at least here in Ohio, this is when the final payment is made to the owner, whether that be with a mortgage loan up the road or actually paying him for years. Paying lease payments to Jack doesn't show positive on your credit, does not show that you own anything and you cannot take out an equity line of credit or gain tax deductions benefits on a house you don't own.

I understand folks with not so good credit who are just so anxious to be in a house they will agree to almost anything. Many times, I've helped people be patient and work through those credit issues, sometimes for years or through several loan resources, and to not be as emotional about what is essentially a huge business decision for your personal finances. With us being such an instant gratification society, so many people who have bumps in their credit do not want to take the time to untangle the knots and make it better. I know it's hard, yes, it takes effort. It is so wise to calm down, get a reality check and find a resource you can trust to help resolve things. Whether that be with your banker or financial advisor. You need to take this dream seriously! Otherwise, you are open season to expensive lenders, hungry vendors and opportunists who see you as another way to make a quick buck and not give it a second thought about your well being. The old saying "if it sounds too good to be true, it probably is" applies here.

Also, something else to think about is the recent falling values of homes. I get many calls from folks who have been in that lease now for 12-24 months and are finding that the price they committed to is too high. The appraiser comes in and the home does not appraise for what they have it in contract for. Sometimes the owner is extending the lease, sometimes the price is renegotiated, but many times the folks holding the lease move out and look for something else, losing anything they paid or updated in the property.

And yes, I've had some people who contact and question me about lease purchase be absolutely nasty to me treating me as the enemy when I explain I do not accommodate these types of contracts and suggest resolving the credit problems and getting a mortgage. Well, you asked and I answered, sorry you did not like the answer. If you want someone to take advantage of your vulnerability, not care, and not discuss the options and pitfalls with you, you've called the wrong agent.

Maybe I "shoot myself in the foot" by not doing all I can to take advantage of people and hooking them into something that they cannot afford, but I have to sleep nights folks. They will find someone else to "help" them I am sure with just a few more calls. And we wonder why there are so many foreclosures? I want my clients to know that I have their best interest in mind and feel comfortable passing my name along to a friend, co-worker, neighbor or family member as an agent that has patience, does the right thing and keeps her client's best interest in mind. That's the backbone of my business. So far, so good. Thanks for reading.

Vicki Owens is a top producing real estate agent in the central Ohio area offering both buyers and sellers top of the line, highly recommended, service for the past 5 years running. For more information about the author, Vicki Owens, ABR, CRS, GRI, and services offered from her with Andy & Associates, Realtors, visit her website www.vickihelpsu.com. Feel free to email vicki_owens@hotmail.com with questions, comments and your experiences to vicki and see her website blog at http://www.vickihelpsu.com/blogs/frequentlyaskedquestions/privaterss.aspx or call 937-644-3385 or 614-440-5174.

Columbus, OH 43224 4431 Densmore Rd.

Wed, 26 Nov 2008 11:30:45 -0600

THIS HOME SOLD IN THE CLINTON ESTATES SUBDIVISION FOR $118,000 AND THE SELLER WAS REPRESENTED BY SUE HANSON WITH KELLER WILLIAMS CAPITAL PARTNERS REALTY. This home offered a 2 Car detached garage with opener, 1st floor master bedroom. It has central air conditioner & forced air gas heating. The seller is offering a Gas Line Warranty & Home Warranty to the buyer's also. It is ready for the buyer's to move right in! Everything is already done for them. This home has new storm/tilt windows, gutters, roof & steel exterior doors. Refinished hardwood floors, updated kitchen & new flooring in kitchen, bath & mudroom & so much more. Way too many updates to list! If you are in the market to buy or sell your next residential, investment or multi-family property, please visit our website at www.TheJacksonTeam.net.

Statistics: HUD Homes for Sale in Central Ohio

Sun, 23 Nov 2008 18:48:35 -0600

I made a strange discovery this week: While we pulled together the properties for this week's map of Columbus HUD Homes, I discovered that the number of HUD homes listed for sale in Central Ohio kept declining the third week in a row. Actually, it was not just declining - it was an outright drop of almost 50%.

Does this remind you of the stock market? Will we see a shortage of HUD Homes in the near future?

It's hard to believe that there will be fewer HUD homes for sale in the foreseeable future. Foreclosures are still at all time highs, and a certain percentage of foreclosed loans were insured by FHA. So why did the number of listings drop?

Look at the statistics of the past 3 weeks. It appears that many of HUD homes got sold, because of aggressive pricing and big discounts. Some are really good deals and buyers take advantage of it.

Date Owner Occ Investors Total List New/Updated

11/02/08 73 90 163 54

11/07/08 79 55 134 63

11/14/08 46 56 102 30

11/21/08 56 53 109 39

At the same time is seems that HUD and its local partner NHMSI have their hands full getting new listings ready. It takes some effort to get these properties to market, completing appraisals and home inspections.

All in all I don't believe we are not running out of HUD Homes. But they are offered at very competitve prices and go fast. So if you want to play - don't delay and make an offer today!

Visit my website http://ColumbusOhioHUDHomes.com to receive my WEEKLY updated HUD Homes Map!

Getting Back to Normal? - Columbus Real Estate is relative

Thu, 20 Nov 2008 11:15:33 -0600

Columbus Real Estate Market

August 21st, 2008 categories: Market Updates

While Normal is a relative term, this press release from the local Board of Realtors this morning calls it "pre-boom" levels, aka 2001ish. . . .

Low interest rates and high inventory added up to more homes going into contract in July. More homes in fact than any other month since August 2007 as new listings fell, according to the Columbus Board of REALTORS®.

Homes in contract continued to increase this summer to an 11-month high. There were 2,051 houses in contract in July, the highest amount since last August.

A drop in new listings in July helped contribute to declining inventory levels.

The number of homes on the market, 17,707, slid nearly 12 percent compared to July 2007. July was also central Ohio's second highest month for home sales, just slightly below the years' strongest month (June) with 2,242 home sales.

"With more homes in contract and fewer being listed, Columbus is continuing its trend of getting back to pre-boom sales and inventory levels," says Greg Hrabcak, President of the Columbus Board of REALTORS®.

"There is still a great selection of homes on the market, but as central Ohio continues its balancing act, the market will continue to be favorable for both buyers and sellers," says Hrabcak. "The fact that we saw more homes go into contract last month shows that homes in central Ohio are competitively priced and suggest consumers are taking advantage of low interest rates and assistance programs.

"Programs such as the first-time buyer tax credits in the recently passed Housing and Economic Recovery Act should motivate even more buyers in the coming months."

Hrabcak added, "I think people who don't take advantage of the favorable market conditions now are going to look back five years from now and say ‘What was I thinking?'"

Year to date sales of homes through July total 12,869, 13.8 percent behind the July 2007 total, but still in keeping with pre-boom levels. The average sale price of a home in central Ohio in July was $173,940.

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

Let's go find a home for you before they're all gone.