Perrysburg Blog

Some houses are like Charles Foster Kane’s mythical mansion, Xanadu.  No man knows . . .

You are a regular Joe.  You read the Toledo Blade and see that your neighbor’s house sold for $X.

So, you assume, it really sold for $X.  Right?

No.  You CANNOT assume this.

Because of the various incentives that sellers can pay at closing to the buyers who buy their house, the “legal” sales price is not always the true price.

Don’t blame the Wood County Auditor.  They simply go with the number provided them, on a statement generated at the closing that the buyer signs.

But in this market there are many legal, but hard to verify “spiffs” that sellers make:

-Paying the buyer’s closing costs.

-Buying “extras” for the buyer.

-Paying an “allowance” for carpeting, decorating, or repairs.

-Paying, in some cases, the very downpayment money that the buyer needs.

You think that the recent sale indicates that your house has a certain value since your house is “better” or bigger or something else.

But they might not have sold for $X right in their pocket - they may have paid $10,000 for a carpet allowance and $6000 in seller paid closing costs and then thrown in $1000 for a new refrigerator.

It is common for me to get one or two or more calls a week asking me about the existence of any seller concessions from prior closed listings from appraisers trying to divine the “true” sales price for a new appraisal that they are working on.

I imagine for every call that I get . . . I don’t get 2 or 3 or 4 other ones.

What is the “true” sales price?

Do Realtors have a continuing obligation to keep such concessions private?

Do Realtors instead have a duty to report such concessions to help the market move and work efficiently?

How do these concessions effect the market (on FHA loans today ALL my sales have seller concessions)?

What are the relationship between these concessions and the movement of homes and the value of homes?

I have some ideas . . . what do you think?

Buyers.

The LIFE BLOOD of residential real estate.

And, as I counseled a young couple today - first time buyers - there has NEVER been a better time to be a first time buyer.

But . . . buyers have to beware!

Here are a few stream of consciousness warning signs for buyers:

- The house for sale with central heat and air . . . but there is a window air conditioner in the upstairs bedroom.  This is a CLUE.  The central HVAC does not work properly.

-The house for sale with a dirty kitchen - dishes and plates full of old food laying around, grease caked range.  This is a CLUE.  The current owners do not maintain ANYTHING in the house properly.

-The house with paneling - never moved or removed paneling over their 25+ year old basement walls.  This is a CLUE.  Perrysburg is built on soil called Hoytville Clay.  Note the word “CLAY”.  It moves and destroys basement walls.

-The house with a warning sign “Pretty Kitty Will Bite - Be Careful”.  This is a CLUE.  If the cat is allowed to bite, it is probably allowed to mark, spot, and otherwise take ownership of the physical plant of the house.

-The house where the seller dogmatically, and without any prompting states “We ain’t gonna pay your buyer’s closing costs - never did believe in that stuff.”  This is a CLUE.  An irritable and arrogant seller may also have pricing problems with the new realities of this market.

-The house that just never seems to keep long-term owners in residence - turning over every year or two and usually on a busy road or corner lot.  This is a CLUE.  You won’t like living in this house either - not unless you get such a deal that you smile everytime you pull into the driveway.

-The house - and you have two little children - that has some dogs running around in the house next door.  And in the back yard.  Big, mean dogs.  This is a CLUE.  You may not be happy with your neighbors.

-The house with the basement that smells funny. . . . wet . . . kind of damp.  This again is a CLUE about the type of soil in Perrysburg and its location on the former Great Black Swamp.  Current owners can’t fix the water problem?  And YOU are going to?

-The house that has the weird floor plan.  So weird that you do not know what to call the rooms.  “This is the annex room that leads to the bedroom.  That is the vestibule with the fireplace.”   This is a CLUE.  Anachronistic floor plans are not popular for a reason - they don’t work.

The house filled with lots of dead bugs (this really happens!).  This again, is a CLUE.   They have to live somewhere.  They do tend to reproduce.   They don’t pay rent.  You don’t want to live in their house!

Just a few observations.

Just a few clues.

It seems that any town of significance HAS to have a library.

Even in this digital, wired age.

Perrysburg has one - a GREAT one.

The local library is actually a beloved local institution in Perrysburg.

Live downtown?

You can walk or ride your bike.

Live further out?

Plenty of free parking.

It’s busy but quiet.

Big but small.

Loaded with reference works, computer terminals, FREE DVD rentals, and lots of new books.

Gripes?

Only a few - my wife always wants them open later on Friday night (they close at a too early 5:30).  They seem to be cutting back on new books - but it is a digital age, I suppose.

I wrote a few term papers there (in the old, pre-renovation building, complete with card catalogs!)

Best features?  Great staff, self-check out, you can hold books, and you can do a lot of “shopping and holding” on-line.

In fact, the main library user in our family, my dear wife, rarely if ever looks for books or asks for help - she does her research and reserving of books, etc. on line and then whisks in and grabs them.

Why buy or own a house in Perrysburg?

The Way Public Library is one great reason.

Down 40% . . .

Thanks for asking!

But I am having a great month . . .

Ouch.

Good homes?  They are still slowing.

Overpriced, underwhelming homes?  You can only imagine!

-44% drop in NUMBER of closed sales means that you need an agent who knows the market, knows how to market, and knows how to sell your home to a buyer, a bank, and an inspector.

I like stats.

This stat - brokerage market share - is more of an esoteric one that real estate professionals pay attention to.

It has nothing to do with prices and current valuations.  At least not much . . .  but it does say a lot about who is working, closing, marketing, and selling the most.

I therefore like this chart.

The real story - Just Call Jon if you want to get your Perrysburg house sold.

The houses are great.

But what else drives so many people to seek out Perrysburg?

The Farmer’s Market.

Each Thursday, the downtown main drag - Main Street or more properly Louisiana Ave.  turns into a market.

Now, if you have ever been to Europe you know what a market day or a town market is.  It is often the very center of life in that city or village.  People from surrounding areas bring in produce and crafts and foods and other locally produced goods.  Stalls and booths and other areas are set up and people from everywhere show up to buy and trade.

But that is Europe.  We have gotten away from this sensible and down to earth activity.

Until recently.

For the past year or two the City/Chamber/et all have put together a smaller, more American version of the European Farmer’s Market (it’s more American becuase we drive to it in our cars and don’t close off the street - we are SO car-based in the USA!)

What do you find?

Flowers.  Plants.  Hormone-free meat.  Crafts.  Locally made cheeses.

Yesterday a local grower had brought in strawberries.

Fresh.  Locally grown and harvested.  Plump.  Amazing tasting strawberries.

They seem to be an entirely different species than the hot-house grown, flown in from Chile, pasteurized strawberries that you can buy in a refrigerated case in a local supermarket year round.

Every time I go to the Perrysburg Farmer’s Market I meet and greet old friends and clients.  I get to see some interesting dogs out walking their masters.  And oh - the strawberries.

It’s a great new tradition in Perrysburg, and just one more reason to own real estate in Perrysburg.

One thing that I dislike about my guild - the National Association of REALTORS - is that they always say “It’s a good time to buy a home!”

In a hurricane?  It’s a good time to buy a home!

In a depression?  It’s a good time to buy a home!

If there ever was a nuclear war - you can count on the NAR to say one thing . . . “It’s a good time to buy a home . . . before the fallout hits!”

By ALWAYS saying this one thing, at all times, and in all circumstances, they have pretty much shot the credibility of any Realtor who says . . . oh, you might want to buy a home now.

So I will not say that.

But I will point out that the predicted rise in interest rates that I have forecast for 2010 has begun.

Read about it here . . . at the Mortgage Bankers site.

Highlights:

The Market Composite Index, a measure of mortgage loan application volume, was 658.7, a decrease of 16.2 percent on a seasonally adjusted basis from 786.0 one week earlier.
…
The Refinance Index decreased 24.1 percent to 2953.6 from 3890.4 the previous week and the seasonally adjusted Purchase Index increased 4.3 percent to 267.7 from 256.6 one week earlier.
…
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.25 percent from 4.81 percent …

You can figure the rest out for yourself . . . rates are going up.  So you should, for once, listen to the National Association of REALTORS.

There really is no accurate answer to that question.

There should be - but there is not.

What does “foreclosed” mean?

Is being already run through the Sherrif Sale in Bowling Green . . . . is that foreclosed?

What about homes that the owner has walked away from?

Homes that are foreclosed but no new deed has been prepared/recorded?

Homes that have an owner who has decided not to walk away, but to simply not pay anymore on the mortgage.

“Foreclosed”.  Simple word - many uses.

Right now there are hundreds of “foreclosed” homes in Perrysburg (city and township).

But there are just6 that are for sale on the MLS:

-10760 Avenue Road

-24230 Luckey Road

-7422 Starbright

-7296 Winding Brook

-24918 Fort Meigs

-1802 Whispering Way

-7315 Starlawn

As always, you can find all of the Perrysburg REO (”real estate owned” - aka bank owned) on my bank REO Google maps/MLS mash up at www.ToledoBankOwned.com

6 active MLS listings.

With many, many more to come.

Why?  How?

You might want to read the sad and troubling article in this weekend’s Washington Post about the loss of good jobs in Northwest Ohio, specifically in Perrysburg.   These foreclosures are the result of our jobs and economic policies.

Until those change . . . expect more tears.

All data for 2009 YTD thru April . . . .

Median price, sold listings:  $163,000

Number of homes sold, month of April:  21

Number of homes sold, April 2007:  43

Listings for sale, Perrysburg (Area 53), 410

Average Days on the Market for Actives:  139

Properties Sale Pending, April 30: 44

My comments:  The number of homes sold is down 51% in a 2 year period.  Back in 2007 the average Perrysburg listing sold for $206,000.   This year?  An amazing low median price of $163,000.

That represents a 43,000 decline in value for the average house.

Which means if you did not sell your house, your value went down by 21%.

Amazing numbers.

The trend has been bad for 2 years for Perrysburg.

Only sell if you NEED to sell.

If you NEED to sell, you need to ask the current market price.

Foreclosed vs. Short Sale?

Sadly becoming an important question.

A vital question.

A confusing question.

As a CDPE (Certified Distressed Property Expert - trained and credentialed by The Distressed Property Institute -  of whom I am now on their Board of Directors) I have seen first hand how this question is impacting the decisions that many homeowners have to make this year.    Tough, gut-wrenching decisions.

As always, seek legal counsel.  But - sadly, I have attorney’s who ask ME for help and information!  So be careful what attorney you ask!

Here is a chart of the effects on your credit of doing a short sale vs. being foreclosed: