Perrysburg Blog

It seems that every day either I or someone on my team meets a person/family/transferring couple who want to rent and not buy in Perrysburg.

And, there is, in my opinion, a substantial inventory of “hidden listings” that are not on the market but are leased by their Perrysburg owners simply because they cannot sell them in this current market.

The two sides – property owners and property renters – come together and a market is made.

Caution was advised for renters by me in a prior post – - the Craigslist Scam.

Now some advice for homeowners who can’t sell and have been pressed into the often uncomfortable roll of “landlord”:

1. Trust but ALWAYS verify.

2. Check and recheck your deed restrictions.  Some condos in Perrysburg forbid a 12 month lease.  Sometimes your nice new tenant will buy a trailer and you will get into hot water with your neighbors.

3.  Use a lawyer to approve/review/draft your lease.

4.  Never let the potential tenant bring THEIR lease to the party.  This should be a little alarm bell that rings . . . .

5. Trust but verify.  Oh, did I say this before?  Well, you cannot trust anyone anymore.   Sorry.  You have to check the veracity of the phone numbers on the application.   You have to check the ID of the tenant.  You have to check the funds behind their check.  You have to check and check and check.   And the ONE TIME you don’t do it, because you just KNOW that the family moving in, with their little girl Daisy being treated for Hypoemetholema . . . the nice family that is moving here from Heart of Gold Texas where they were pastors and choir singers . . . that family?  That’s the one that will GET YOU GOOD.

6. Lead based paint.  Know the rules.  Embrace them.  Follow them.  Or get ready to get sued into oblivion.

7.  Never, ever listen – and I mean don’t even LISTEN to the excuses and reasons and rationale from a tenant who cannot pay.  Seriously.  Can I call my tenants up and reasonably expect them to listen to me about my problems and my family issues?  At its’ base – the landlord / tenant relationship is a commercial one.  It’s a business transaction.  With multiple payment points.  And a written contract.   Homeowners of the shadow inventory of unsold homes in Perrysburg who indulge in being a professional landlord cannot then ALSO become lenders/enablers/counselors etc. for their tenants.  It does not work.

You can be a landlord.

Just think about it first.

Or, you can hire me.

Just consider my free advice.

“I am an out of town owner, and I want to rent my 4000 sq. foot, river front mansion in Perrysburg.  I will sign a 12 month lease for $299 per month.   I need a deposit of $2000.  Email me back on Craigslist or call 419-260-XXXX!”

Hmm.

Too good to be true?

Yes.  It is.

People are actually out there purporting to rent houses THEY DON’T REALLY OWN.

There have NEVER been more vacant houses in Perrysburg than there are today.

This weekend I had to check on 2 new assigned assets for a bank.  Both in Perrysburg.  Both long vacant.

It is neither hard to find them or to pretend to own/control/rent them.

Here is how they do it – and what it costs.

1.  Get a prepaid cell phone.  Use a false ID.  $120

2.  Find an empty house.  $0

3.  Jimmy the lock – put your own on.  $25

4.  Place a bogus Craigslist ad – $0

5.  Make the “deal” so good . . . that you have multiple takers.

6. Spend one day collecting the rental deposits.

7.  Vanish.

This is happening in many other markets – here is a report from San Diego.

I have experienced versions of this scam in Toledo with foreclosed houses.   But . . . it’s just a matter of time in Perrysburg.

Do not “leave the money on the table”.

Don’t rent from a person who is offering something too good to be true.

Don’t trust anyone who does not have a legitimate business presence in the area.

Verify the actual ownership of the property you want to rent – the Wood County Auditor is free!

Who sells the most homes?

In and around Toledo?

In 2009? Who wins the gold?  The silver?  The bronze?

These guys do!

Congratulations to all of them!

Top 50 Agents 2009:

Includes MLS sales in Lucas and Wood Counties from 1/1/2009 to 12/31/2010 and excludes non-commission HUD home sales, commercial sales, mobile home sales, and cemetery lot sales. So . . . it’s my take on the top agents.

Which is now a very valid and pertinent question . . . since the town’s biggest builder just recently closed up shop.

And the current level of new construction activity is, oh, about 10% of what it was a few years ago.

Suddenly, getting a nice, neat, clean, modern new(er) house is actually harder . . . but still, if you are transferring into Perrysburg/Northwest Ohio, just as important and vital.

IMO, Perrysburg continues to be the number 1 choice for incoming corporate moves – but whereas in the past I could show such a transferee 10 or 20 new homes from a diverse number of builders – that is simply not possible today.

But – do not despair Mr. and Mrs. Transferee.

We have houses like 780 Little Creek.

Subdivision still open – Forester/Wherle still building and active but only with contract in hand, no more specs/models . . .

Modern, 2 story, center hall design.

Clean.  Livable.  Not beat up.

No glaring design flaws.

Owners have upgraded with a professional build quality finished basement.  They have updated/upgraded the F/W flooring with tile/ceramic/new berber as needed.

They have upgraded the standard level F/W appliances with some new, bright stainless ones.

And, they have even fenced the yard, built a deck, and added a hot tub.

No need to write a building contract and live in a hotel for 5 months . . . this house is ready.

And it is not unique.  There are several similar like it on the market at any given time.

So the move into town from Chicago or Pittsburgh or Dayton, etc. need not be filled with disquiet at the current lack of new builds.

$189,900 as of this date – it is SHARP!

A empty shell.

Crabs like them.

But they are terrible for helping homeowners to pay their mortgage.

And if you drive along Alt20 – aka Illinois Ave. in Maumee, you will see a lot of empty shells.

And “FOR LEASE” signs.

And vacant factories, offices, and businesses.

It’s a vivid reminder of what has happened and what has helped residential real estate to collapse in value.

The collateral damage from this one street’s empty and shuttered businesses and factories is felt in every subdivision in Perrysburg.  I know clients that have lost jobs in Crandenbrook and other Perrysburg neighborhoods who used to work on this street.

But now their jobs are gone.

You want reports of the economy getting better?  You want to know when the residential market is better?  You better go for a drive . . .

Especially with regards to “winterizing” your house.

I was showing a house this weekend on Saturday.  A nice house.  A big house.  An expensive house.

And as I was showing it . . . droning on with my comments for the benefit of my client . . . I know that my brain was telling me something:

“There is a noise that does not belong here.”

“There is a strange noise.”

“Heh – Look at your breathe – it is COLD in this house!”

It was, of course, the sound of running water.

Which is not a good thing to hear in what should be an empty, freezing house.

It in fact constitutes an emergancy as far as the value of the property is concerned.

Here is the actual progression of this and other incidents that I have observed:  Cold.  Expanding water in pipes.  Broken pipes.  Water shooting out of pipes.  Water filling every nook and cranny as gravity, absorption, and other physical forces work in a weird combination.  Mold spores liking the new moist environment.  Mold spores reproducing.  Huge areas of porous surfaces destroyed.  Large water and remediation bill arrives.

It’s a terrible thing to see.

It’s a tragedy if it is your house and bank account.

So – when I tell a client “you really should winterize the plumbing” (which involves a licensed professional with a bond and liability insurance draining and blowing out and filling the pipes with antifreeze . . . and then standing behind his work) —– when I tell a client that, you should listen.

Because if you have been in the houses that have not done that, gambled on our winter weather, and lost – if you have seen it go bad – I would not have to tell you even once.

Still . . . you can do it yourself if you are so inclined.   But one way or another – winterize those pipes!

You might be – because someone forgot to trademark it.

Now it is too late!   REALTORS know that the acronym MLS stands for “Multiple Listing Service”.  It’s our shared listing database wherein the local Realtors cooperate and compensate each other for helping to sell listings.

But . . . some people who play soccer use it too!

So I will make things easy.

At least on THIS blog.

I write exclusively on real estate in Perrysburg.

And local people and places that effect and influence said real estate.

But up until this week, if you wanted to look for actual houses for sale, you had to go off my site to one of many “listing” sites.  (N.B. I still recommend OnlyPerrysburg.com or MLSToledo.com)

However, if you look at the far left column of this blog – right there over on the lower left – you will see a “live feed” from the local MLS.

I have set it up so that it is only houses in Perrysburg, with the newest listings added today on top, going down in chronological order.

Only listings in the 43551.

Only active, for sale, listings.

And only here . . . . on PerrysburgBlog.com

One thing to add is a clear, shoveled driveway and sidewalk.

But that will become less and less important as we hit March and April . . .

AVID Ratings does a big survey every year (LINK).  Here is what the survey said!

1. Large kitchen with an island
2. Energy efficient appliances, insulation, and windows
3. Home office / study
4. Main-floor master suite
5. Outdoor living room
6. Ceiling fans
7. Master suite soaker tubs
8. Stone and brick exteriors
9. Community landscaping, including walking paths & playgrounds
10. Two-car garages

Now – these all sound reasonable.

I would add a few Perrysburg-focused items that will BOOST your homes value:

1. A three car garage (you can’t “add” this, but you can plan it for your next house . . . )
2. Kitchens and Baths – update them!  There is nothing wrong with changing out a 20 year old microwave . . .
3. Do something to bring light into the house – glass front door, Solatubes, skylights.
4. Landscape lighting.
5. A “moderate” finished basement (carpet, black painted ceiling, painted walls, lights).

These features add “zing” and “POW!” to the buyers memory banks when they compare your home to another when it is time to sell it.

They have both a high “return” in that you can enjoy the improvements while you live there and then get some resale value out of them when it’s time to move.

Somethings to think about if you are planning on buying in Perrysburg:

1. Buy now, not later.

The 2009 extended tax credit for buyers is going to end this Spring.  If you are definitely going to buy in 2010 you are rather foolish to NOT take the governments free $8000 or so.  (I admit that it is borrowed from China, will have to be paid back with interest by our children, and will help to further bankrupt America – but YOUR not taking it won’t help.)

2. Don’t Buy JUST Because of the Tax Credit.

Sorry – many people are buying now who should NOT be buying.   There is a TOTAL COST of owning in Perrysburg that many buyer’s gloss over with stars in their eyes as they swoon for a great listing.  Taxes.  Insurance.  Upkeep.  Please consider carefully ALL of these costs.

3.  Lock In Today’s Great Rates!

The $ multi-billion dollar mortgage buyback program that the Fed has been running will be winding down soon. When it does most experts are forecasting a .5 to 1.5% increase in nominal interest rates for all fixed rate loans.

4. Buy A Short Sale.  If You Can.

I believe that in 2011 we will look back and say that 2010 was the beginning of the short sale bloom.

Short sales are right now:  the best deals, the greatest value, the best kept property, and surprisingly hassle free if you have patience.   You can call me and I will “evaluate” you for short sale tolerance.

5. Save Your Cash.

Start saving $$$$.  You are going to need at least 10% down for an FHA loan if your credit is not spotless.   And, by the way, you ought to have at least that much down or you should not even be buying a house in this volatile market, IMHO.

6.  At Least Consider an REO Listing.

These poor lenders are trying so hard to move this inventory . . . and many of the bank owned listings I have in Perrysburg are GREAT buys.   You can usually get a great deal.  We can often find a good loan program that meets your needs.  There is no shame in buying one!  You can find ALL the active Perrysburg REO’s at my REO site - www.ToledoBankOwned.com

7.  Forget About Flipping For Fun and Profit.

Not unless you are a seasoned investor professional with experience, cash, and contacts.  You are also probably on a first name basis with me so that I can feed you the one or two deals that are “flippable”.   Otherwise do not try this – way too dangerous.  And you are competing with the banks, HUD, and the myriad of REO’s in the “shadow inventory”.

8. Get a High Deductible Insurance Policy.

I have learned a few things from my insurance selling brother www.ModeneInsurance.com.  And one is that you are not really going to use your home owners policy anyway – not for anything small.  (If you do – they are watching and will JACK YOUR RATES UP!)  You are going to use your property insurance for a really big claim.  So get a high deductible policy and save some serious money.  Those insurance guys – they make enough money anyway and will gladly sell you a cheaper, high deductible policy.  (If you talk to my brother Dave . . . ask him what lovely desk accessory I bought for him).

1. The Shadow of Strategic Default

This one I hope does not come true.   It will be bad for everyone in Perrysburg.

But there CAN come a point in a market where the asset is not worth the debt.  When that happens a smart and savvy investor will simply walk away.

Oh – the moral dimension?  The ethics?  It’s wrong?

Well, the biggest foreclosure in America happened this week – a $5 BILLION collection of apartments in New York City.  And the sophisticated, intelligent, MBA-laden owners including Tishman Speyer and Blackrock Capitol – just walked away and turned the keys in.

Think about the possibilties of dozens and then hundreds of normal home owners with underwater mortgages doing the same – especially if the “little guy” in Toledo gets a loan modification (and he doesn’t really “need” it).

This could happen – and the blood will be messy.

2. The Rise of the Rental House.

Every day I am getting calls from people who need help finding rental property.

Or from owners who want to leaser their homes.

Many home owners are considering leasing because they just can’t stomach the price today’s market will pay them.  So leasing becomes a way to ride out this market.

The tax consequences of leasing can be AMAZING (more on this soon!).

3. The Rationalization of Value.

Sellers are now coming to terms with the new values in Perrysburg.

Like the proverbial “Five Stages of Cancer” or grief . . . many are now in the last stage -acceptance.  They will soon come to the point that I have – I can now rationalize the new values and price points.  I accept that the “old market” is not coming back, but that the new, current market is wonderful.  For new owners.  For buyers.  For investors.  Even for many renters.

4. The Reaction of Corporations for their Transferees.

What is a company to do?  You want to move Joe and Sally Manager to XYZ City.  B

But their home is upside down, underwater, and not worth what they paid for it.

Should they leave it behind?

Should they turn it into a rental?

Should they lose all their savings just for a promotion?

No!  Hey!  They can ask the big giant corporation to make them whole, grossing them up after taxes 4 or more times, and reimbursing them for their loss on sale.

This will be more and more common in Perrysburg.

5. The Restrictions of the Reams of Paper.

The new loan and HUD and lending regulations have taken effect.

No changes  – or you start from square one.

A typo?  10 or 20 days in the hopper again.

Lenders will most likely find new ways to “beat” the regulators . . . but that will take time.  So in 2010 get ready for delays.

6. The Fallout of the Bailouts on Property Taxes.

This is something that I hope does NOT happen in Perrysburg.

The bloom is off the rose with bailouts and budgets and Federal help to Ohio.

No more help is coming.

Our leaders at ALL levels should have used the past three years to cut spending.

They didn’t.

Now with huge revenue hits coming they may look to the homeowner for help.

By running a stream of new levies by the homeowners in the 43551 for every little program and big program will have the effect of increasing your tax bill and decreasing your home’s value as fewer and fewer can afford the tab every 6 months.