What a dramatic change since we published Statistics on Government Foreclosed Homes at the end of February 2011.

The total number of HUD Homes in Columbus Ohio is down to 299, from more than 400 HUD listings at the beginning of the year. Even at the end of February we had close to 400 listings.

It appears that after an initial push by the new asset managers to get as many HUD properties on the market as possible, the listing volume is now leveling out.

However, this may also indicate that we are now in a much stronger market than predicted by the experts. A couple of weeks ago we reported that right now 30% more homes for sale are in contract than a year ago. We noticed that the demand for discounted and foreclosed homes has significantly increased since the beginning of the year.

Take a look at the HUD homes data for each of the Central Ohio Counties. The loss of listings has affected most counties evenly with the exception of Union which saw an increase.

HUD Homes Listing Statistics

Listings per County

Franklin County: 220
Delaware County: 13
Licking County: 19
Fairfield County: 16
Pickaway County: 13
Madison County: 11
Union County: 7

TOTAL Number of Central Ohio HUD Listings: 299 (394 at end of February 2011)

Here’s information on the pricing of HUD homes in Columbus.

Pricing & Listing Types

Average List Price: $71,980
Lowest Price: $7,000
Highest Price: $215,000

Dollar Listings: 3
Exclusive (owner occupants): 114
Extended (all bidders): 176
Lottery (Non-profits & government): 6

There are 3 really decent Dollar Homes available. These homes have been on the market for a long time. All of them have been overpriced while they were still listed. Now for $1 they are a huge bargain, but only available for Government Agencies.

One of the homes has a retail value of $155K. It is located on 930 Stoney Creek Road in the Indian Hills subdivision near Antrim Park, just South of Worthington. If you work for the Government – go get it!

Do you realize that there are hidden costs when you buy foreclosed or HUD homes?

I am not talking about out-of-pocket items, such as loan application fees or even the cost of your home inspection. These are fees most buyers are aware of. You already know that you will have to spend some money before the closing that can not be covered by closing costs (most of which are paid by HUD in the form of a closing cost contribution).

The costs I am talking about have to do with utility activation and other services performed by HUD’s field service managers.

Since 3 new field service managers took over in fall of 2010, rules for turning on utilities have changed and so have their fees.

When you look at a property on the HUDHomeStore.com, you can easily find out which field service manager is responsible for a property. Go to the Agent Info tab of a specific property. The field service manager is listed on the right hand side, with all their contact information and email.

Here are the websites of the 3 field service managers responsible for Columbus HUD Homes:

• A2Z Field Services (614) 495-5970
• Innotion Enterprises (703) 351-8151
• Cityside Management

Dependent on the firm in charge of your property, the rules and fees for turning on utilities are different. Fees can range from $100 to more than $200. Some field service managers charge a fee just to authorize you to turn on the utilities, while others provide the plumber  to turn the water on and off, and charge a hefty fee for it.

As a buyer you should not have to deal directly with these firms. This is the job of a good Columbus real estate agent. Your agent receives all required forms and information with the ratified contract. That’s the time to immediately plan if and when you need to get the utilities turned on.

Whenever you schedule a utility activation, make sure you have your “ducks in a row.”

• Your appraiser and inspector should both come during the time when the utilities are turned on, otherwise you need another authorization and pay an extra fee.
• Line up the utility companies, so they will have enough time to schedule the activation of gas, water or electric, while you have permission.
• Have your own contractors ready (if required) to inspect the plumbing, do the pressure test and turn the furnace on.

Utility activation is a hassle with HUD homes and most other foreclosed properties. An experienced real estate agent who has a team of inspectors and contractors will make your life much easier and save you repeat activation fees.

A few days ago HUD added a new disclosure to its listings on the HUD Home Store that has many Columbus buyers and real estate agents puzzled.

“Availability of home is subject to the Asset Manager removing the home from the market”

What does this mean?

Basically, they say that HUD could remove the listing at any time without notice. On regular HUD listings that does not happen too often. They may remove a HUD home from their website, because of damage to the property. Maybe someone stole the copper or broke into the house.

HUD homes on a daily bid deadline get the additional warning that they are available “subject to the Asset Manager accepting a bid from an earlier bid period”.

HUD reviews new offers during business hours (Central Time). Bids submitted by midnight are reviewed on the next business day. It usually takes most of that day to go through all of the offers.

A property may disappear from the HUD home store anytime during the day, when HUD accepts a contract submitted a day earlier.

Here’s a good strategy that will save you time and redundant offers …

Submit your offer after 6 pm. That’s when most HUD listings have been updated and you know that the HUD house of your choice is still available.

You are probably wondering why a beautiful house like this one is back on the market?

There are 3 main reasons why HUD homes fall out of contract:

1. The buyer can’t get financing
2. The property inspection uncovers hidden defects
3. The buyer gets frustrated

Do not underestimate the challenges that await you when you buy a HUD house.

It’s a hassle to turn on the utilities, you don’t know what to expect from the property inspection, the lender questions the condition of the house, the A/C unit gets stolen a week before the closing, and the seller (HUD) won’t make any repairs.

As a buyer you will get frustrated and maybe lose motivation to close on the purchase. There are just too many things to put up with.

An experienced Columbus real estate agent who specializes in HUD homes will try to prepare you for these uncertainties before you submit an offer. Most important, your realtor should take as much pressure off your shoulders as possible and manage the HUD house purchase from bid to closing.

After all, you can get a really good deal on Columbus HUD homes. Like the house above, which just came back on the market due to some of these unexpected problems.

You can have this almost new HUD house for only $145K. The original home owner purchased it for $212K, which means you pay 32% less!

Did you ever wonder why some HUD homes don’t sell?

It’s a combination of 3 factors which determine, if a house is a good deal that will be snapped off the MLS as soon as it gets listed, or if it sits forever without even a single showing. The 3 factors that have a negative impact on a HUD listing are:

1. Listing price too high for the type of home (foreclosure or bank-owned)
2. Located in the Columbus school district
3. Needs repairs or has outdated interior

   

Here’s a Columbus HUD home that meets all of these negative criteria. No wonder it has been on the market for more than a month without any offers.

Unfortunately, the asset managers did not reduce its list price, yet. This house is available to investors. But at its current list price of $116K it’s just too expensive for an investor to make any money.

Say you would like to buy this house. What’s your best strategy?

Submit offers! Without an offer you can’t get the house. Start with a low offer, one you feel is reasonable considering the location and condition of the property. The worst thing that can happen is that HUD doesn’t accept your bid. No money lost!

Second best? You may get a counter offer. Sometimes the asset managers decide to counter and you have an opportunity to accept that counter offer.

You don’t have to take it, if it’s still too high. Just continue submitting your preferred price every day. As all offers are submitted online, it only takes a few minutes, and your realtor will gladly do it for you.

Sooner or later the HUD asset manager will settle near your price point!

I know for a fact that this strategy has worked for many years, and it still works with today’s new managers. There’s just one disclaimer to make – this approach may fail, if there’s competition.

When you join me on a house hunting trip you better leave your flip flops and heels at home!

You probably saw the popular TV show “What Not To Wear” on TLC. Although I like Stacy and Clinton’s transformations and style advice, house hunting (especially in Winter) is not the time when you want to dress up. Just the opposite – wear comfortable clothes you can move around in easily and that keep you warm.

As I write this post in the middle of January, I strongly recommend you dress for winter and snow!

Here’s why:

1. Utilities have been turned off in HUD homes and most bank owned properties. These houses are VERY cold inside. If we look at a few of them in a row, there’s no place to warm up, but your car.
2. Snow and Ice are not cleared off the driveway. You may have to wade through a foot of snow just to get to the entrance. The floors are often wet and slippery.

If you are cold, you won’t enjoy your house hunting trip. Believe me, I have been miserable on many a cold winter day inspecting HUD homes.

So, dress for the winter season, bring winter boots, gloves and a hat, because HUD house hunting is not a fashion show.

Call me at (614) 975-9650 to schedule your Winter House Hunting Adventure.

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

Something is bothering me today, and I would like to find out what you think!

Here’s what it is.  HUD has asked their listing brokers to market properties as “regular listings”, not as HUD homes. I presume they believe this will lead to more showings and higher offers.

• Do you think that’s a good idea?
• Are they trying to hide something a buyer should know before they look at a home?
• Does it make any difference for you as home buyer?

Click here to give me your opinion!  Please answer these 5 short questions. It will take approximately one minute. I really appreciate your honest feedback on this topic!

Here are the Results of the HUD Homes Opinion Poll!

The total number of HUD homes in Columbus is steady above 400. Here are the stats and 5 of my newest HUD listings!

HUD Homes Listing Statistics

HUD Homes Previews

4015 Shannon Green Dr, Canal Winchester, OH
2BR 2.5BA 1,342 sqft Listed for $67,000

5153 Mapleridge Dr, Columbus, OH
3BR 1.0BA 988 sqft Listed for $35,000

1903 Rosemont Avenue, Columbus, OH
2BR 1.0BA 1,004 sqft Listed for $26,244

1389 E. 21st Ave., Columbus, OH
2BR 2.0BA 816 sqft Listed for $11,000

3154 E. 13th Ave. COLUMBUS, OH
2BR 1.0BA 762 sqft Listed for $5,000

Call me at (614) 975-9650 to see the inside of any HUD house!

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

The number of HUD homes in Columbus is still increasing. Below are 5 of our newest HUD listings. Three of them are newer houses in the suburbs, one is located in Lancaster and the last one is a low cost rental house in Linden.

As a bonus I added a vacant lot.

That’s right – HUD owns vacant lots. The home that used to sit on this lot was completely destroyed in a fire and ultimately torn down. This is a great opportunity for builders – the subdivision was originally developed in 1997.

HUD Homes Listing Statistics

Franklin County: 322
Delaware County: 14
Licking County: 29
Fairfield County: 22
Pickaway County: 17
Madison County: 12
Union County: 4

TOTAL Number of Central Ohio HUD Listings: 420

HUD Homes Previews

7930 Brianna Dr., Blacklick, OH
4BR 2.5BA 1,917 sqft Listed for $129,900

51 Grisby Lane, Pickerington, OH
4BR 2.5BA 2,548 sqft Listed for $140,000

2852 Medora Dr., Grove City, OH
3BR 1.5BA 1,654 sqft Listed for $68,000

2810 Lancaster Thornville Rd, Lancaster, OH
3BR 2.0BA 1,320 sqft Listed for $73,695

1433 E. 21st Ave., Columbus, OH
2BR 1.0BA 824 sqft Listed for $17,000

BONUS HUD LISTING – Vacant Lot in newer subdivision

5022 Easy Court, Columbus, OH
Vacant lot, Listed for $20,000

Call me at (614) 975-9650 to see the inside of any HUD house!

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

Let’s ring in the new year with 402 HUD Listings!

Never before did we see such a huge selection of HUD homes in Columbus. And you should take advantage of it. With the economy growing again and interest rates going up (for the past 5 consecutive months) it’s time to make up your mind and submit an offer.

Here are the specifics for the 7 Central Ohio Counties:

HUD Homes Listing Statistics

Franklin County: 310
Delaware County: 12
Licking County: 24
Fairfield County: 20
Pickaway County: 20
Madison County: 12
Union County: 4

TOTAL Number of Central Ohio HUD Listings: 402

Enjoy the previews of 5 of my listings!

118 W. Cochocton St, Johnstown, OH
3BR 1.0BA 1,392 sqft Listed for $80,000

3423 Hail Ridge Dr, Reynoldsburg, OH
3BR 2.5BA 1,483 sqft Listed for $113,000

2133 Jade St, Grove City, OH
3BR 1.5BA 1,234 sqft Listed for $58,000

3338 Omega Dr, Columbus, OH
4BR 2.5BA 2,351 sqft Listed for $145,000

3641 Hollowwood Ave, Columbus, OH
4BR 1.5BA 1,456 sqft Listed for $64,000

Call me at (614) 975-9650 to see the inside of any HUD house!

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

Let me start with a heart felt Thank You to all of my readers and Holiday Greetings. I am really glad that you are interested in HUD houses and I hope my articles are helpful for you.

The past 2 months were CRAZY. We received so many new HUD listing assignments that we were scrambling over most of December to get them up on the MLS. You will find 410 HUD houses for sale in Central Ohio.

To see all of my HUD Home Listings with 18 pictures, videos and comment, click here!

Let’s take a closer look at 6 of our listings.

2879 Liberty Bell Lane, Reynoldsburg, OH
3BR 2.0BA 1,587 sqft  Listed for $78,003

218 Sonoma Dr, Delaware, OH
3BR 2.5BA 1,512 sqft  Listed for $116,000

1048 Wildwood Avenue, Columbus, OH
3BR 1.0BA 1,410 sqft  Listed for $22,000

204 Richards Street, Danville, OH
2BR 2.0BA 1,120 sqft  Listed for $52,000

5270 Arrowood Loop E., Columbus, OH
4BR 2.5BA 2,100 sqft  Listed for $116,000

101 N. Westmoor Ave., Columbus, OH
3BR 2.0BA 1,322 sqft  Listed for $25,000

Call me at (614) 975-9650 to check out some HUD 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