I am sorry to be the messenger of bad news. But this is very important for all owner occupants who planned to buy a HUD home in 2010.
HUD announced that effective February 12, 2010 - that's a Friday - HUD homes sold with FHA financing will no longer be eligible for the $100 down payment incentive.
In addition, the sales allowance of $2,500 for owner occupant purchasers will also be discontinued.
What's the impact of this drastic reduction of incentives? If you are an owner occupant buyer, it certainly means that you will have to bring more cash to closing and somehow come up with the minimum downpayment required by FHA. Currently, this is still 3.5%, but it may go up to 5% in the near future.
For investors and owner occupant buyers with cash this will open up the doors for even better deals. I truly expect the HUD homes inventory to rise after this deadline, fewer homes will be purchased by owner occupants and HUD will be eager to accept lower offers from investors.
Thanks for reading our Columbus HUD Homes Blog Posted by: Susanne Novak, ABR, FIS, GRI Columbus Realtors specializing in HUD Homes, Shortsales, Investment Real Estate (614) 975-9650 http://ColumbusOhioHUDHomes.com
Central Ohio HUD Listing Statistics for the Week of 02/05/10
Total homes available: 138 (last week: 104)
Owner occupants: 108 All bidders: 30 New listings: 62 Sunday deadline: 28 Relisted/Price reduced: 18
Median Price: $80,500 (last week: $69,500) Average Price: $80,535 (last week: $71,103) Highest: $182,000 Lowest: $12,600
Homes less than $50,001: 35 (last week: 34) Between $50,001 & $100,000: 61 (last week: 48) More than $100,000: 42 (last week: 22) Call me TODAY at 975-9650 to secure one of the remaining $100 down homes!
Thanks for reading our Columbus HUD Homes Blog Posted by: Susanne Novak, ABR, FIS, GRI Columbus Realtors specializing in HUD Homes, Shortsales, Investment Real Estate (614) 975-9650
More than 100 HUD homes are available in Central Ohio. The majority of these Columbus houses is in the $50K to $100K bracket.
The median list price has recently dropped to below $70,000. This means that half of all HUD homes are listed for less than $70,000 (median) the other half is more expensive.
On the chart below you can see how the median and average list prices of HUD homes have changed in 2009. It has been cyclical and varied between $55,000 and $80,000.
I also want to mention a few relists that may be good opportunities for investors (if they are still available on Wednesday morning).SteinerStreet in Westerville is back on the market, but still listed for $130K. The 6 bedroom double on 4th Street (just south of Merion Village) is now available for $9,900. And there's a multi-level home in the Riverbend Subdivision (southwest) relisted at a reduced price of $58,500.
Call me and let's go look at some of these potential deals!
Thanks for reading our Columbus HUD Homes Blog Posted by: Susanne Novak, ABR, FIS, GRI Columbus Realtors specializing in HUD Homes, Shortsales, Investment Real Estate (614) 975-9650 http://ColumbusOhioHUDHomes.com
Canal Winchester is a growing suburb on the South East side of Columbus. There you'll find quite a few new subdivisions with attractive, single family residences that are perfect for young families and first time buyers. Canal Winchester always had a good selection of HUD Homes. I previewed 3 Columbus HUD homes for you. They are close to each other and very affordably priced.
As a bonus I added two more Columbus houses - a free standing condo near the airport and a rehab project in the OSU campus area. I hope you like my selection!
Did you ever wonder how many HUD contracts never close? Do you know why HUD homes fall out of contract?
These are two common questions many of my customers ask. I did a little bit of research, compiled some numbers and found an explanation for you.
Let's first look at new HUD listings - that's the new listings we present every Friday on our HUD homes map in red. Last year (2009) HUD listed a total of 1,049 homes in Central Ohio - approximately 20 new HUD homes per week. These homes were never listed as HUD homes before. They represent the total inventory of HUD houses in the Columbus area.
Over the same time period 910 HUD homes got relisted.That comes to around 18 per week. This number includes homes that were relisted 2 or 3 times. Basically, this means that for 90% of all homes HUD has to either lower the price or put them back on the market before a home gets sold.
There are the 3 reasons why HUD contracts fail:
Missed Deadline: If a HUD home is out of contract 2 or 3 days after the offer was accepted, it usually indicates that the paper work was not submitted at all or not submitted correctly within the 48 hour deadline. Either the buyer did not sign the contract and deposit an earnest money check with the brokerage, or the real estate agent did not submit the contract in the allotted time period. Tip: Your agent needs to overnight the contract within 24 hours of contract acceptance and all documents must be signed in blue ink.
Property Condition:When a HUD home is relisted 2 to 3 weeks after the offer was accepted, it indicates that the buyer completed a home inspection and was not satisfied with the result. The home inspector may have detected problems that were not disclosed in HUD's property condition report or the appraisal. Tip: If this happens, HUD will often relist the property as uninsured and accept lower offers.
No Financing: If a HUD home falls out of contract after 4 to 8 weeks, most likely the buyers did not get their financing approved. There could be different reasons for this: maybe the underwriter required certain repairs before final approval or the borrower could not provide all documentation requested by the lender. Lenders are very picky these days and sometimes minor damage to the house may result in a loan denial. Tip: Only work with lenders that are experienced with closing HUD properties. Call me for a list!
How do you avoid these problems? Work with me. I am closing on several HUD homes every month. I will help you anticipate potential problems, resolve them for you, or help avoid them altogether.
If I notice that a property fell out of contract, I will let you know immediately, because it gives you an opportunity to get an even bigger discount once it gets relisted.
Thanks for reading our Columbus HUD Homes Blog Posted by: Susanne Novak, ABR, FIS, GRI Columbus Realtors specializing in HUD Homes, Shortsales, Investment Real Estate (614) 975-9650 http://ColumbusOhioHUDHomes.com
This is the week of the investment property. The HUD homes map is overwhelminly "green". As an investor, you know what that means: a large selection and great buying opportunities on Columbus HUD homes.
A total of 40 properties are open to all bidders. We did not have that many since February 2009. If you did not get your map, you are probably not a subscriber. Enter your email in the orange box to the right and hit Send to join
Now let's take a look at a few new HUD listings that offered at bargain prices. There's a pretty nice home on Hinman Ave - at the southern end of Merion Village - for only $7,000. A couple of years ago homes sold for up to $150,000 on this street!
Just 3 blocks north of it you will find another HUD house at 319 Southwood Ave. It is listed for $64,800, however, this one's already open to all bidders. I believe that HUD should accept offers in the low $50K range.
Another one to point out is located at Wyandotte Avein the 43202 ZIP code. Yes, this is part of the University District. HUD is asking $60,000 for this property. Most houses in the OSU Campus area sell for much more.
Listing Statistics
Total homes available: 101 (last week: 129)
Owner occupants: 61 All bidders: 40 New listings: 17 Sunday deadline: 29 Relisted/Price reduced: 15
Median Price: $69,000 (last week: $78,500) Average Price: $71,021 (last week: $79,922) Highest: $168,000 Lowest: $6,000
Homes less than $50,001: 32 (last week: 32) Between $50,001 & $100,000: 47 (last week: 59) More than $100,000: 22 (last week: 38)
Call me TODAY at 975-9650 to take advantage of this great selection!
Thanks for reading our Columbus HUD Homes Blog Posted by: Susanne Novak, ABR, FIS, GRI Columbus Realtors specializing in HUD Homes, Shortsales, Investment Real Estate (614) 975-9650 http://ColumbusHUDHomes.com
Here are the listings statistics for all Columbus HUD homes in 2009. Each of these charts shows the HUD listings available on each Friday of the year. There's one bar for each week of the year (1 to 52).
The first chart represents the absolute numbers of listings. You can clearly see that at the beginning of the year up to 140 HUD listings were available. Since spring of 2009 this number dropped way below 100 and did not recover until January 2010.
The columns of the charts are color coded in a similar way like the markers on the HUD homes map. Red indicates new listings, yellow relists, blue means Sunday deadline and green are properties available to all bidders.
The second chart shows percentages of the different listing categories for each week. Let me explain what it means: the total number of listings every Friday is 100%. The colors indicate the percentages of the 4 different categories. You can see that in January 2009 50% of all listings were available to investors (green), while that number dwindled to only 15% in summer and fall of 2009.
If you have any questions about these charts, please call me and I will try to explain them to you!
Here are the bidding results of the HUD homes we featured on New Years Day:
3181 Andy Terrace, Columbus, OH 4BR/2.5BA 1,705 sqft Asking $105,000 Offer accepted on 1/11/10 for $105,000 exactly at list price
1966 Bay Port Dr, Grove City, OH 3BR/2.5 BA 1,840 sqft Asking $101,000 Offer accepted on 1/11/10 for $117,000 16% above list price
3375 Omega Dr, Columbus, OH 3BR/2.5BA 1,336 sqft Asking $100,000 Offer accepted on 1/11/10 for $100,582 just above list price
200 E Walnut St, Westerville, OH 3BR/1.0BA 988sqft Asking $65,000Offer accepted on 1/11/10 for $65,300just above list price Call me today at (614) 975-9650. January is the best time of the year to make an offer!
Thanks for reading our Columbus HUD Homes Blog Posted by: Susanne Novak, ABR, FIS, GRI Columbus Realtors specializing in HUD Homes, Shortsales, Investment Real Estate (614) 975-9650 http://ColumbusOhioHUDHomes.com
This week HUD added an interesting mix of 30 new HUD listings. You will find them in places like Worthington, Hilliard, Gahanna, Obetz and, of course, throughout Columbus.
I will preview some of these Columbus houses for you on Monday. I am still testing cameras and did not find one I really like. I had a Sony Cybershot which took excellent pictures. Unfortunately, the newer version's flash light is just not good enough for taking pictures in dark rooms and basements.
Please remember that Monday is a holiday, which means that the bid deadline has been extended till Monday midnight (instead of Sunday). This gives you another day to choose one of the 57 new listings from last Friday (blue on the map).
Listing Statistics
Total homes available: 129 (last week: 115)
Owner occupants: 102 All bidders: 27 New listings: 30 Sunday deadline: 57 Relisted/Price reduced: 15
Median Price: $78,500 (last week: $80,000) Average Price: $79,922 (last week: $82,310) Highest: $168,000 Lowest: $10,000
Homes less than $50,001: 32 (last week: 24) Between $50,001 & $100,000: 59 (last week: 55) More than $100,000: 38 (last week: 36)
Call me TODAY at 975-9650 to take advantage of this great selection!
Thanks for reading our Columbus HUD Homes Blog Posted by: Susanne Novak, ABR, FIS, GRI Columbus Realtors specializing in HUD Homes, Shortsales, Investment Real Estate (614) 975-9650
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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