The Columbus Real Estate Blog

Here’s a property I toured a day or so ago. It’s right on the cusp between OSU’s campus and Short North area. Great rental area but I think the asking price of $135,000 is a bit steep for the amount of work. The property has been gutted and is ready to start finishing but being that I’m overly anal about things I don’t think I would offer $135,00 being that it does need so much work.

Take a look and see what you think.

If you’d like to take a closer look the large images are on my Flickr.com account here:

http://www.flickr.com/photos/andrewlaughlin/

HUD properties here in Columbus are finally being put back on the market. They were off the market for sometime (about two months) while the government reorganized the management of these properties. Previous companies that were hired to manage these homes had been failing to adequately produce sales as well as provide adequate management functions. Ohio has in essence been the epicenter of the foreclosure market with one third of all HUD properties being in the buckeye state.

My company was given a contract to list these properties in the Columbus area. We’re finally happy to see the listing of these properties and movement forward in getting home owners into these properties. There are some great deals that can be had with HUD homes and we love showing our clients the money that can be made.

Neighbor Next Door HUD Listings

What is the Neighbor Next Door Program

Pretty blunt website address isn’t it? There appears to be a tidal wave of angry home owners with the idea that they are not responsible for the subprime problem. I agree that people who planned, and were ready with good credit and a down payment shouldn’t be paying to bail out people who weren’t. But the question is how much of a problem the subprime credit crisis will become.

AngryRenter.com is a website with the soul purpose of letting congress know that a bailout program isn’t fair. They feel that these banks who made billions should be settling the issues themselves. Sorta hard not to agree just a little bit isn’t it?

I just ran across this awsome map. Well awsome in its representing statistics from the housing crisis. I hope you find it as interesting as I do.

What do you do now?

I’m not going to say that finding issues in a home inspection is normal, but it does happen a lot. Nature wants to get in your home. Insects, rain, hail, wind, all factors that can do wonderful amounts of damage to a nice piece of property. A home inspection is a must have when buying a property so don’t be surprised when finding issues.

I do a lot of work in Columbus’s downtown area and when dealing with older homes, expect to find problems. Floors slope, homes settle, paint cracks. These are all issues that can happen with an older property so be a little understanding. But what can you do when problems arise?

I had a recent client find old knob and tube wiring in the home. Not normally a big deal as older homes tend to me riddled with knob and tube. But the real issue was that some of it was not only still “hot” but the wiring was still being used. WOW… I know. So a concerned client asked me how we remedy the situation. I explained that all I’ll do is contact the other agent, inform them of the situation, and ask that it be remedied by a licensed electrician.

Not a big deal right? Well here comes the reason for the post. How can you tell the work was done correctly and that they have nothing to worry about? I suggested two different options. When getting any work done in this business you keep receipts. Receipts are proof and you can’t refute proof. The listing agent is a big time home seller and I explained to my client that we could take the receipt and call the electrician, ask them what they had done, and verify. A little checks and balances at work. This wasn’t enough for the client, and I don’t blame them, it’s dangerous stuff. So I suggested this.

I use the home inspector I do because he is not only good, but reliable. I have asked him to go back to a property as much as 3 different times to get the job done. So I informed my client that when all was said and done we’d bring the inspector back and have him take a look. If it met his satisfaction, we would be good to go.

Real estate can be a pricy business but when it comes to protecting your major investment, you need to be positive of what you’re doing.

Listed below is the most recent numbers for sales stats in the Columbus market. Not a lot of the numbers are going in the direction we would like, but everything is still trying to work it self out. In the most recent news we’ve been labeled to be one of the top markets for a reset this year. Expecting to return to our modest 3% increase in values every year. We have also been listed as the number one tech city in the U.S.

With all the foreclosures happening in todays market it pays to know what the difference is. For instance, a HUD home and a short sale, what are the characteristics of each? I thought I’d take a little time and explain the subtle differences between a HUD home and a short sale. So here it is:

1. HUD Home - These properties were once insured by the federal government. Meaning the owner bought the home with an FHA, VA, or any other sort of government insured loan. The trouble begins when the owner stops making payments. After the foreclosure process (and I promise its long) the government will then assumes control of the property.HUD homes can be a great deal. If you’re looking to buy a home, fix it up, and then live in it. These are typically the best deal. Most only need carpet, paint, cleaning and a little cosmetic work. I always show clients these properties. Often in great neighborhoods, with instant equity, it’s stupid not too.
2. Short Sale - This is typically the first step in the process of a foreclosure. Sounds weird doesn’t it. Well here’s the skinny. Home owners know when they are getting in trouble. Typically making their payments late, if at all, they contact someone for help. A short sale is a way to head off the foreclosure before it actually happens.The term “short sale” means trying to sell the home for a lesser amount than what is actually owed on the property. In most cases a bank would rather take this route than foreclose as it costs them a whole lot more money (current estimates are anywhere from $50,000 to $85,000). Like HUD homes, these properties can be a great deal. Often with only minor repairs needed, or none at all, you can get the home you want for substantially less than it would cost normally. Like HUD properties I don’t hesitate to show short sales.

Every American dreams of owning their own home but when credit problems or unforeseen issues happen, that dream can be crushed. These sorts of factors have lead to the current housing and credit crisis we are currently in. Too many people obtained loans that were out of their price range, and then unexpected issues took their toll.

The state of Ohio is trying to help all these troubled home owners. Ohio has been listed as one of the top five states in trouble so a program called “Save The Dream” has been created. It’s sole purpose is to educate and counsel callers on how to stop the impending foreclosure. Educating home owners to contact their lenders before the hole becomes too deep can stop banks from trying to repossess the home.

We can thank our state for hiring a small army of helpful people to answer phones and give credit advice.

Save The Dream

Living in a metropolitan area has many benefits people don’t often think about. Convenience, entertainment, and a robust night life are just a few of the attractions downtown living has to offer.

For years owning land was part of the American Dream. White picket fences, a walk-in-closet, and a dog were all Americans felt they needed. Times have changed. Buyers want granite counter tops and stainless steal appliances. Huge baths with multiple shower heads and separate his and hers vanities. Some choose to live in more urban, or downtown areas, while others choose to stay in the suburbs. There are attractions for both but it’s all up to the desire of the person buying the property.

The Short North, German Village, Merion Village, just to name a few have been the urban dwellers apple. You can find everything from art galleries to interesting sex shops, bars, restaurants, and a hockey arena. Downtown areas can offer a different perspective of an area, for instance living in a condo with a view of a great city night line.

CityView at 3rd is offering some great deals for consumers. With Design center credits and parking deals, there isn’t a reason to skip even a peak at what’s in store in these types of condos. Even if you’re not interested click the link below, or on the picture above, and see what these condos have to offer.

CityView at 3rd

The Federal Open Market Committee has been doing everything in the past few weeks, and months, to slow and stop our recession. In the meantime our economy has slipped into exactly what they were trying to stop, and you can see the evidence everywhere. The lack of consumer spending (which is what fuels our economy) to the slowing hiring rate of companies, it’s in the interest of the feds to try and bring us back around. But what does a federal rate cut really do? They drop it almost a percentage point, but the mortgage rate goes up. Why?

Apparently the only thing which affects loan rates, is where the market thinks inflation is going to go. Banks are not only worried of the foreclosures to come, but of the ones they already have. So why risk yourself with a lower rate allowing less desirable buyers to buy?

This process sounds like a vicious cycle to me. Why not lower rates so people can  refinance, allowing them to save money, and then spend money boosting our economy? This would also help home owners that can’t afford their rate right now. If they refinance into a lower rate their payment goes down allowing their mortgage payment to reset into a reasonable spot.

Why mortgage rates are still heading higher