Perrysburg Blog

Do you own real property in Perrysburg? In Wood County?

Then send a thank you note to the solons in Lucas County. Because in the real world, when transfer costs and holding costs increase, the value of an asset . . . DECREASES.

And in Lucas County both have happened.

And their actions up in Lucas County make Wood County and Perrysburg real estate MORE VALUABLE by direct comparison.

Recently the geniuses in Toledo increased the transfer tax due when a property sells. It’s paid by the seller and they upped it by 33%.

Smart. That $800,000 in planned revenue? It will cost them a couple of million in lost value of property sold.

Then Lucas County went and sold their outstanding tax liens to a New Jersey company. For cash. On the barrel head.

The plan was something like this: You give us cash. We give you the liens. You talk to the people who used to owe us money.

The REALITY was this: We give you cash. You give us liens. We immediately file foreclosures on EVERYONE who has a tax lien. Of any amount. Today. And we are going to pile on with attorney costs

Brilliant!

What a way to treat your citizens.

A New Jersey firm? Maybe the lawyers are from Cicero Illinois.

ALL of this activity makes owning real estate harder, more painful, and more expensive.

In Lucas County.

The real property owners of Perrysburg and Wood County will benefit.

I estimate you just made $1000 per property.

Thanks Lucas County

I am doing more and more short sales these days.

Why?

Because our local economy is slowing down.

Which puts job pressure on workers and business owners.

Which puts income pressure on homeowners.

Which puts houses behind in mortgage and second mortgage payments.

Which leads to . . . . short sales.

Or at least attempted short sales.

Because often there are 2 different lenders on the same piece of real estate.

And there are complications.   Like bankruptcy, income collapse, damaged homes, etc.

All of which conspire to make the short sale harder and harder to accomplish.  And you do know, of course, what a short sale is.  Right?  It is when the bank or lender takes less than what they are owed (they are shorted) and they still release the mortgage so that the seller can still sell.

What is the problem?

Most lenders are buried with paperwork and applications for mortgage renegotiations and short sales and foreclosures right now.  Absolutely buried.

In my experience less than 1 out of 3 short sale attempts get closed.   We can increase the odds if the seller does all of the right things and has a good reason for attempting the short sale and if the buyer involved is very, very patient.   Then the odds go up to 60 or 70%.   But it takes a lot of work and a lot of time.

Right now the lenders are the main problem.   When they forgo the shorts sale they then end up having to foreclose on the house.  Which usually, by the time they get into the property, is full of mold/water/broken pipes/stolen copper/and any other bad thing you can imagine.   When they finally get clear title, pay off there acquisition costs, and finally get it sold in a declining market, they always will have been better off to take the short sale dollars.  Every time they would have netted more money with a short sale vs. a foreclosed sale.

Perrysburg short sales are difficult – and worth the effort for the seller.   If the lenders catch a clue, they will win in a difficult situation as well.

Now, I am not one to dwell on the negative.  I have been accused of being permanently cheerful.   To that I plead guilty – for I am my father’s son.

However, I will always try to tell it like it is.

Always.

And some wonder if the publishing of detailed Perrysburg real estate stats and trends is a good thing to do.  We must remain “positive” after all . . . .

It is a good thing to do.   Do you want to be surprised?!?!

No.

But you OUGHT to be thankful.

Our little price retrenching is NOTHING compared to what is happening in other markets.

You may argue that the huge price drops in Florida, Arizona, Nevada, and California are not harmful at all – not if you bought your house in 1990.

Well, alot of people bought in 2007 and 2006.

What is their market like?  Observe these median price drops for just 1 year in So. Cal. -

Makes our -18% look very, very good.

Perrysburg – it never went up that high.  It won’t crash down that low.

Something to be thankful for today.

The buyers are coming back.

Back to the market.

Back out to play.

Amazing what happens when markets are allowed to function.

Perrysburg Properties for Sale: 423 Active single family and condo listings

Perrysburg Properties Under Contract, November: 30

Perrysburg Listings Closed, November: 24

Average Days on the Market, Closed Listings November: 77

Months Supply of Inventory, November. 12.0

Median Sold Price – $225,000

Listings on the market, active – 11/2006 vs. 11/2008 – 514 vs. 423 -18%

This is a simple market snapshot – data is taken from the NORIS MLS and does not represent all market activity.

That said – fewer houses are on the market and it is taking a motivated seller to get a house to closing.

There are more and more bank owned homes on the market that “regular” sellers must compete with.

Last November 33 homes closed. This year? 24. Ouch.

Lots of numbers – but the pain of this market is real and immediate if you own real estate in Perrysburg and have to sell it now.

I estimate that our values are now back to 1998 levels.

Will it stop here?

Read this blog to find out!

Get me some country living!

Who would have ever thought I would ENJOY living in the country? Not me!

But my wife “pestered” (she really didn’t. she simply kept educating me and helping me to open my eyes!) and after 4 years of procrastination we moved out to the country – Perrysburg Township. Where we love it.

Now I present to you a fine Perrysburg Township farm property. The 100+ acres of farm land is gone – so all that you are left with is 10 acres of barns, trees, a creek, a pond, silos, a pool, and fine country farm house.

Make of it what you will. Ride, shoot, explore, plant, keep some horses. But just know that when you come home from a hard day at work, there is plenty of “country therapy” available to keep you sane and young.

There is a lot more work out in the Township. More lawn to mow. More drifting snow to plow. More things to clean or power wash or kill or cut or . . . but that is actually some of the hidden joys of living in the country that you lose out on in the city.

This house is for sale on Dowling Road. Priced in the $250s’ it is a great buy.

And it will change someone’s life.

Call or email me to see it. You can look at all the pretty pictures at my property website – www.modene.com.

Not 1 in 10.

In Ohio 1 in 8 is in foreclosure or preforeclosure.

Sorry for not recognizing the seriousness of this problem.

Amazing.

The auto industry is asking for a bailout.

Wall Street?  They got theirs!

Who is next?  I don’t want to think about it.  Leaderless, our government is making serious error after serious error, seemingly compounding the mortgage mess that I have been writing, warning, and blogging about for over 3 years.

Now I read that 1 in 10 Americans – 10% of the homeowners – is behind on their mortgages.

That’s amazing.  That is huge.  But what is the upshot in Perrysburg?

Simple:  Real Estate Is On Sale.

I will not peddle the pablum that the National Association of Realtors peddles every month: “Now is a great time to buy a home!”

Not me.

But if you are a buyer – you are going to get the deal of a lifetime.  It is really that simple.

You should have a large down payment saved up.  You should not impoverish yourself to buy a home today.  But if you are in the market, this is the time to get a house on sale.   My investor clients are GIDDY with excitement over current prices.   And they are making money.

First time buyers?  Wow.  I wish I was one today.

Are you an investor?  Do you want to become one?   I am peddling an 14 unit apartment building in excellent condition for a bank.  It’s an REO apartment building.  Not many of those!  Under $200,000.  Comes with tenants and garages.

Now that’s a sale.

My own opinion is that if the Federal Government would JUST LEAVE THINGS ALONE we would soon establish market values and things would be fine.  (I would also eliminate capital gains taxes for 24 months – then you would need to really watch out!)

This is a tough year – in some markets 40% of the Realtors are leaving.  In Toledo 25%++ are failing and cannot support a family or themselves.

But if you have been wise – and if you have a plan – real estate is on sale.

Don’t miss it!

Dave is getting ready for his live radio show.

You will never guess the subject!

Real estate.

Lots of work as you can imagine. He is looking for angry callers – not too hard to find in this market.

Money and economic activity involve …… Faith.

Dave is not participating in the recession. His business is way up.

Realtors who want to grow in this market had better have faith.

What can’t be done – it can be done. If you have faith. And if you get to work.

In Nashville for a meeting wtb Dave Ramsey – the radio guy (AM 1560 at three on the afternoon).

First thought – he worked the room before he does the meeting. NO ONE does that.