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Low End Housing Market Heating up

Home Forums General Columbus Discussion Development Low End Housing Market Heating up

Viewing 15 posts - 1 through 15 (of 21 total)
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  • #1113855
    Posole
    Posole
    Participant

    I’ve heard some things that suggest that the lower end housing market is starting to heat up in certain areas and wanted to see if anyone in the know can confirm. I know several couples that are shopping in the 80k-180k range and they keep saying the houses they like are getting snapped up faster than they can bid. I also have noticed an uptick in unsolicited offers in the mail that I haven’t really seen since the market crash, the kind that are more sophisticated like: “Hi, my wife and I are looking to raise a family in this area and we really love your house…” (as opposed to just the occasional block letter “We Pay Cash for Houses 555-CASH”).

    A real estate friend says turnover in some places is running at 33 days and she’s selling 2 or 3 under $100k homes for every $250k home. Is this a good time to list or buy before a run up?

    #1113907

    Cbussmallbiz
    Participant

    There is historically low inventory. Not enough new housing has been built for demand. 12 % of houses with a mortgage are still underwater. It’s a good time to sell. I think it’s a mistake to think prices are going to the moon though. Everyone is trying to convince first time home buyers they are going to be priced out of the market soon. How did that end up last time. There are alot of forgotten lessons these days.

    #1113919

    Cbussmallbiz
    Participant
    #1113924

    rpackowski
    Participant

    This is the first time I have ever posted on here, however, I just purchased a house and had a similar price range. Many of the houses we saw in the price range were fixer uppers, some we were afraid to get out of our car. with a VA loan a fixer upper was out of the question as the house had to be move in ready. However, we did find a great house in Southern Orchards (east of Parsons, south of LIvingston). We did have to go a little over the asking price, but we had them cover the closing costs. The houses are there in Columbus, if you knwo where to look. There are 2 houses less than a block from mine that are on the market and more on the way. If the developer took City gratns for the rehab, your family has to meet income requirements for being a middle class income home, think it is no more tha 1.5x the Columbus average household income.

    #1113932

    Nancy H
    Participant

    Everybody’s circumstances are different. In most areas of Columbus, housing values are up across the the entire price range. As realtors like to say, it is a sellers market. Some homes sell within days on the market. The “got ya” is if you are selling one house and buying another.

    My husband died not quite two years ago. I decided to sell our big old fixer upper in the Short North and downsize. The place still needed lots and lots of work, which was beyond my capabilities. I knew I would get a good price for it because it was huge, located in a high demand part of the neighborhood, and still zoned as a four family. It sold in ten days without even technically being on the market. They paid the asking price and were even agreeable to some other odd things like me keeping possession for six months. When I looked for a much smaller house in the SN I began to think I couldn’t afford to live in the area anymore. After four months of searching I finally found a house in the area that I liked and could afford. I was the first person to see it when I came on the market. Made an offer for their asking price three hours later. They didn’t accept my offer. Three other people made offers the same day. Two at above the asking price. A small bidding war followed. I ended up getting the house, but only after offering more than their original asking price, waived inspections, closing asap and an all cash closing.

    If you are think of selling and buying another house I would highly recommend checking out prices of houses that fit your needs on something like realtor.com. With the increased prices in housing and the additional expenses like realtor’s commissions, refinancing costs, moving expenses, etc it might make you decide your existing home is pretty sweet after all.

    #1113947
    Ned23
    Ned23
    Participant

    I’m getting ready to list up at the north end of North Linden and have been watching sales in the N.Linden / Northland area and visiting open houses for the last 18 mo. or so.

    I’ve seen two nearby homes go for above the asking price just since the first of the year. I’m seeing more 25-35 yr old couples with nice cars shopping in the area. They are buying a lot of the houses that were owned by elderly long time residents who kept them nice.

    Turnover time depends entirely on the house. If the house is clean and move-in ready with new appliances, and newer windows, it can turn over in days. If it needs even a little work, then it’s closer to a month. Anything beyond “a little work” and the house sells for 20-25% less or worse, or it doesn’t move at the market rate.

    My advice for selling is shop around for clearance deals on nice appliances. Appliances don’t have to match brands in a $100k house, but match the quality and color between them. Replace the carpet, and put in some new plumbing fixtures. Fix floors, paint, clean (hire house cleaners if you have to). When people walk into an empty house the first thing they see are the floors. Spending $5,000 sprucing up a cheap house can add $20k to the price.

    #1113964
    Snarf
    Snarf
    Participant

    I could triple my money in Franklin Park, but I love the house so I think we’ll keep on and pay it off soon.

    #1113995

    Nancy H
    Participant

    With older houses I would recommend checking the permits section of the Franklin County Auditor’s website. A homeowner can do any work on their house they want, even if they don’t know a thing about electrical wiring or plumbing. I looked at a number of houses that “looked great” but upon closer inspection I noticed those outlets in the bathroom were not ground fault outlets, and similar things that were questionable. Lots of people do superficial fix ups to help up the price. That is not to make light of some of the good suggestions Ned23 made.

    #1114112

    Eugene_C
    Participant

    The Sears Outlet stores are a great place to pick up good deals on appliances. The “Outlet” stores have closeouts and scratch and dent appliances and returned appliances. You can get the nice mid-line Maytags and so forth for the price of low-end brands. Very often they are new in box and most of the scratch and dents are not that noticeable for example you may see some marks along the side of a range from where it was clamped to a dolly but once you slide it into the counter that’s not visible.

    #1114774

    melikecheese
    Participant

    I can confirm in Merion Village / 43206 – A friend of mine has been searching for a year or so, things are pending within a day or two of being listed. He has been called on a way to a showing to be told the buyer accepted an offer, sorry. I’ve had multiple investor types come to my door asking me if I am interested in selling. Houses ran 100-175, now are running 175-225 and sadly the affordable ones are getting flipped and pricing certain people out of the market.

    #1114968
    Ned23
    Ned23
    Participant

    I can add another confirmation. I listed my house in N. Linden on Tuesday; it hit Zillow around 11 AM. I had one offer before the end of the day and 3 by the next evening. Less than 48 hours after the listing it’s in contract. Buyers are a recently married couple with a standard mortgage who asked for no closing costs.

    #1114984

    Nora
    Participant

    I listed my house in East Beechwold and we were in contract within a week. I think some of the listings in our area are a bit optimistic about what people will pay for these generally pretty small houses, so turnover isn’t as fast. That said, having just bought a house, lack of GFCI outlets in places where they probably ought to be wouldn’t worry me much (I’d just add them myself). Old houses do not HAVE to be brought up to code as long as there is nothing potentially dangerous going on.

    #1115134

    groovy
    Participant

    people just cant learn a lesson

    buying homes with little or nothing down with fed backed mortgages

    what could go wrong?

    #1115159
    Ned23
    Ned23
    Participant

    people just cant learn a lesson

    buying homes with little or nothing down with fed backed mortgages

    what could go wrong?

    That’s actually not What’s driving sales. Most of the bids I got on my N. Linden house were standard mortgages. Only one was FHA.

    #1115185

    thomaspickles
    Participant

    people just cant learn a lesson

    buying homes with little or nothing down with fed backed mortgages

    what could go wrong?

    That was 2005, it’s not happening now. Banks are not caving to prior government pressure to lend to all like they did in the 90’s and early 2000’s.

Viewing 15 posts - 1 through 15 (of 21 total)

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