Did you read the dooms day stories in the media in early May?
Did you hear experts predicting the next crash of the real estate market after the home buyer tax credit expired in April?
Luckily, the nay-sayers have been proven wrong again. I am glad to report that in Columbus OH, homes for sale are still purchased for much more than asking price.
It’s incredible! I could not believe my eyes when I saw the most recent bidding statistics of upscale HUD homes. Buyers are literally fighting to win the bid. In many cases they offer significantly more than list price, just to claim they bought a “bargain”.
Let’s see, if these home purchases are good deals, or, if the buyers got caught in a bidding frenzy. Here are 4 HUD homes that went in contract yesterday. I saw most of these homes from the inside. Most of them are in average condition (at best.)
I also know that these homes were listed just below market value. In general, the nicer, suburban HUD homes are usually listed 10 % below retail value to account for repairs and clean up. Only very few HUD homes are offered at significant discounts. And these homes usually need lots of work.
The first home I want to point out is in Gahanna at 3549 Watt Road. This house needs a complete overhaul, however, it comes with a 1 acre lot and comparable sales are around $200,000.
List Price: $122,000 Final Offer: $145,000 – $23,000 above list!
The next house at 5776 Heirship Ct in Hilliard was a more expensive HUD listing right from the get-go. This residence has a great floor plan, it is located near the Heritage Lakes Golf Club and needs only minor repairs. Comparable sales in the subdivision go up to $210,000.
List Price: $170,000 Final Offer: $180,000 – $10,000 above list!
The next overpriced house I found in Blacklick at 542 Slate Lane. This 2,000 sqft, 4 bedroom home is pretty much in move in condition. It’s only 4 years old and almost looks like new.
List Price: $155,000 Final Offer: $163,500 – $8,500 above list!
Finally, here’s for the bonus round!
How about this boring Lewis Center house at 8691 Clarksdale Drive. There’s nothing exciting about its layout and the carpets need to be replaced, too. Yet, comparable sales are in the $250K range.
List Price: $200,000 Final Offer: $221,371 – $21,371 above list!
Congratulations to the buyers! Despite the fact that you paid more than asking price you got very good deals. Most likely you will still be below market value after repairs and improvements.
If you are still looking for a home, please be careful and don’t get caught in a bidding frenzy. If you decide to work with me you will benefit from my experience selling hundreds of HUD homes. As my customers you will know exactly how low you can go and still get your offer accepted.
You will not overpay for any of these homes, if you work with me!
Follow these 3 rules when it comes to submitting an offer:
- Get comparable pricing of similar homes for sale in the subdivision
- Consider all of the repairs and modifications you need to make to get your property in retail condition
- Understand which discounts sellers have accepted for similar homes
A professional Columbus real estate agent should be able to help you with all three points.
Don’t hesitate to call me at (614) 975-9650! I’d be glad to help you with your home purchase.
Thanks for reading the susannenovak.com Blog!
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Real Estate Agent helping First Time Buyers.
(614) 975-9650