Perrysburg Blog

Let’s just compare this year vs. 2009.

Simple.

Elegant.

Same seasonality.  Only 12 months of time to account for.  You can ignore the median price due to sample size.

28% fewer homes pending.

38% fewer homes sold.

50% drop from May/June numbers.

Raw Data with Median Prices:

Want to sell?

1. Be motivated.  Have a good reason.

2. Be prepared.  Have a good plan.

3. Be buyer focused.  Have a good price and good terms/condition.

It’s secret.

It’s above top secret.

But if you are doing a short sale you need to change where your checking and savings accounts are.  Banks are now using language in their checking and savings policies that you have agreed to when you opened your account to PULL MONEY OUT of accounts that are not linked to your mortgage.

Now, in polite society, this is called STEALING.

Or THEFT.

In bank terms it is called the “Right of Offset”.  You can go here and do a search for that term if you want to get real mad.

But the average consumer does not have a copy of what they signed, can’t remember, and probably can’t hire a lawyer to look at all their agreements.

So – the simple solution that I am telling ALL my short selling clients is this:  MOVE YOUR MONEY TO A TOTALLY DIFFERENT BANK.

Simple.

Sweet.

Ends the drama.

I won’t name any banks – I am assuming some are not doing this.  But some are.  And the solution to protect you is as simple as the pain of the unauthorized monetary removal is great if it happens to you!

Which I rarely do.

Because you can look at the left side of my blog any day to see what new homes are on the market in Perrysburg.

But this one is mine.

This one is special.

This one is very, very hot.

1942 Tecumseh Court is in Crandenbrook.

And Crandenbrook is a FANTASTIC neighborhood.

You can walk to the park.  Your kids can walk to Ft. Meigs Elementary.

Excellent resale.

Excellent lot sizes.

I LOVE Crandenbrook (I have owned 2 houses there in the past . . . and raised my kids there).

But this house – on a quiet cul de sac, with a first floor master suite, and a three car garage is a SUPERLATIVE example of the best of Crandenbrook.  The lot, the layout, the condition – it’s all top shelf.   Priced right – what would you expect from me anyway! – at $280′s.  You can call me if you want a private showing.

Advice I am giving to potential sellers:  don’t sell unless you really need to.

Advice I am giving to sellers that really need to:  make sure you really need to sell.

Advice I am giving to sellers that are sure that they really need to sell: there are too many houses for sale given the buyer activity we have right now – let’s find out how we can work together to sell your house in this environment.

The WSJ has an interesting missive out today - about the glut of houses on the market.

Interesting reading:

“Pending sales, signed contracts on the purchase of new homes tracked by the National Association of Realtors, were down 3% in June compared to May. That month saw a 30% drop in the index, after the April 30 expiration of the home buyer’s tax credit.

The pending sales numbers point to more alarming home sales figures, wrote Credit Suisse analyst Dan Oppenheim in a note Tuesday. Mr. Oppenheim said that given the sales pace, we’re on track to sell 3.7 million homes total this year–-the lowest seasonally adjusted level of single-family existing home sales since the fall of 1996.”

I read elsewhere that a major US builder does not want anymore tax credits or Federal home buyer stimulus.  “Just let the market work” was their plea.

The housing market is tough right now – investors from out of state are buying 100 to 400 houses in a single auction.  You want to compete against that?  In Toledo? “Gird your loins” as they say.

In Perrysburg we are not at that point (and never will be . . . !) but the dynamic pressures just to the north of us still impact this market.   When housing values plummet close by it hurts us.

Great listings are still in demand.

Great buyers are still coming to PBurg.

Enjoy the Glut if you can!

I do get phone calls.

“I have a couple of questions about . . . ”

And I try my best to answer them.

I also have a couple of questions about Perrysburg Real Estate:

1. What is the future of home values in Perrysburg?  Will we ever see an “automatic 3%” increase every year like we did for many years?

2. What is the impact on the continued meltdown in Toledo home values going to do to our prices/values in Perrysburg residential real estate?

3. How much/many new taxes and property tax levies can the citizens of Perrysburg keep passing and paying until the stigma of “too many taxes” hits the top of mind thinking of buyers and they discriminate AGAINST Perrysburg listings/houses?  Will the City ever STOP spending more each year?

4. Who is going to rent/lease in Levis Commons?

5. What is the “BEST” subdivision in Perrysburg?  The one that people, irrespective of price point, love the most?

6. What can Perrysburg do to better leverage one of the greatest downtown districts in Ohio?  More car shows?  More parades?  Getting more people to a bigger/better Thursday Farmers’ Market?

7. How many homeowners are “underwater” in Perrysburg today?  Right now?  And how does that realization change their spending?  Change their planning?  Change their involvement with the community?  Change their desire to stay/work here?

I do not have the answers . . . . not on these.  I’m just asking . . .

Did you know you may have to pay a tax on your home?  When you sell it?

Because of the 2010 Obama Care Health Plan?

Yes.

It’s true.

But it’s also not likely.  At least not right away.

You will have to an income of more than $200,o00.

You will have to have a gain of more than $500,000.

Then you will owe a 3/8% “Medicare Tax” on your capital gain.

Some have called it the “Lawyers and Accountants Employment Tax”.

You can read the excellent article in the Washington Post for all the gory details.

So, unless you have a big bomber on River Road or the Sanctuary . . . and you inherited it . . . you are not going to pay the new tax.

(In fairness I must point out that the new tax is also on tanning, investment income, and many other things – which you WILL have to pay.)

But here’s the problem.

Honestly ask yourself this:  Are the big spenders in Washington D.C. going to ratchet the thresholds up or down in the future?

You and I both know the answer -  $500,000 will be $250,000 then it will be $25,000 (in the name of fairness) and then everyone selling in Perrysburg is going to have to fork over another 3.8% of their homes’ value at the closing table.

Count on it.

There really was one a couple of weeks ago . . . although I did not feel it.

But there has been an ongoing one . . . for the past 3 or 4 or 5 years.

The “mortgage implosion”.  Which is really the “people who have lost their jobs can’t pay their mortgages implosion”.

Excerpting from today’s Toledo Blade:

Metro area 52nd highest in ’10 foreclosure filings

Metro Toledo ranks 52nd highest in foreclosure-related filings in the first half of the year among the nation’s top 200 metro areas, a new study shows. The ranking, the worst among the metro areas in Ohio, is based on the number of filings of default and auction notices and repossessions per households. RealtyTrac Inc., a national real-estate data tracking firm, says in a report released today the Toledo area has one such filing for every 65 houses.

#52.  Of the top 200 foreclosure towns.

Not.  Good.  At.  All.

You can argue about school funding, TARTA leaving, and the constant I-75/475 construction projects all you want to.

But when 1 out of 65 houses in T Town has JUST GONE UNDER THE GAVEL in 2010 . . . . the other problems are not that important.

My advice?  No need for a Foreclosure Czar.  No need for a conference.  No need for a telethon.

People in Toledo need J.O.B.S.

That is the only thing that is going to bring housing back, equity back, and end the misery and physical destruction of real estate in Northwest Ohio.

I use the MLS every day.

Here are some updated jargon items that have caught my attention:

“Corporate Owned”.  No one can say “REO” or “Bank Owned” anymore . . . . but this means it is foreclosed.

“Active”.  May be pending.  May be sold.  May be contingent.

“Spec Home”.   This is extinct.  See “Passenger Pigeon” for an example.

“Needs Work”.  This can be better translated as full of toxic black mold, a tree has crushed the garage, and the pipes and plumbing and furnace and kitchen have been removed with a Sawzall’s.

“Prequalified”.  This, again, has no meaning.  Anyone seems to be able to get a prequal letter that is magically not worth anything 3 weeks later.

“Short Sale”. This has 2 meanings.  A.) A great house at a great price.  Jump for joy!  B.) A house you can never buy until it is foreclosed and “needs work” (see above).

“Great Location”.  This means it is most likely a terrible floor plan.

“Needs Redecorating”.  Translation?  Foil wallpaper, green walls, asbestos tile in the kitchen, and skunks living in the crawl.

Of course, I personally never use any such jargon!

Just so you can identify what they are doing . . .

And just as a public service . . .

IF you reply to one of these incredible rental deals in Perrysburg or Sylvania here is the first letter you get.   Note how they suck you in and how later you will have to give them more info.  These Nigerian Scammers and very good – they bait the hook and play the fish:

Hello,
I did get your response concerning the AD I posted on craigslist. The house is still available but I’m not in the state. I did bid for a portion of Gas(popularly known to be  the oil and gas sector) in west africa and fortunately I won the bidding,so I had to move quickly down to west africa to set up my own company. because I will have to rebid for it in the next 10 years. I came over here with my wife, we both built the house when we got married. As soon as we settle down here I had  thought of selling the house, so I had an agent who had wanted to help me in that regards,not until my wife had advised against such plans;she gave reasons that we will definitely be in search of a new home when  coming back to the state and that a nice home might not be as easy to get.I gave it a second thought and decided is best I have someone take very good care of the house while I’m away… So I contacted the agent back and requested for my keys and documents(you will get to see in the front yard, the ”for sale sign” which will be no problem handling cause I will take it off as soon as I can find the right person to occupy the house) Later we decided to have the house leased out,I personally would have given the same agent this task to carry out,but the extra charges these agents get for carrying out thier chores,we belive might scare those seeking to rent our home.Some people are not aware that you get to pay more in rent when an agent is involve,and get to pay less when renting from the owner directly(so the agent is not invlove in this).If you have taken notice you will discover that the price we are offering is far below the market price,it’s for a fact that we are not after the money but the very upkeep and proper care that our new tenant can offer in regards to the house.The house is completely empty now(the refrigerator,washer,dryer,stove and some more that are just what we have left in the house)so, you can get to move into the house with your furnitures cause the rooms are big enough for them.I will be providing my new tenant with a local account where the monthly rent can be paid into.I will be providing my address over here where my new tenant can always write me..I will have to go through the information that I had requested to help me with having the right person occupy the house, and also would like to discuss things over on phone( my cell phone number is right below) so that I can be pretty sure of a true screening before giving out any form of approval…The keys and paper works will be forwarded to the current address via DHL or FEDEX upon approval.I will be coming back from time to time to check on the house and to see in what condition it has been kept.The lease term will be for a maximum of four years.

Please if you are ready now to occupy the house kindly provide the information below for record purpose

PLEASE TELL US ABOUT YOURSELF
Full Name__________________________________________________ Home Phone (        ) ________________________
Date of Birth_________________________________
Other Phone (       ) ___________________
Current Address_______________________________Apt#________ City__________________ State______ Zip________
Reasons for Leaving____________________________Rent $__________Phone (       ) ____________________________
Are you married____________________________
How many people will be living in the house__________________________
Do you have a pet____________________________
Do you have a car____________________________
Occupation____________________________
Move In Date____________________________
House Address:
XXXXX XXXXX XXXXXXXXX

P.S.;YOU WILL NOT BE ABLE TO VIEW THE INTERIOR PART OF THE PROPERTY,BECAUSE I HAVE THE KEYS AND DOCUMENTS HERE WITH WITH ME.

Regard’s Mr.Peter Fox
Phone…+234-80226310
011-234-8022631

There are many.

Sewer tap fees that keep people from building.

Zoning rules that keep people from “stepping down” to the right use or “stepping up” to the best use.

But 2 that I really hate and detest, because of the “unintended consequences” that their use causes are:

1. Condo associations that want the “right of first refusal” on you or me buying into their association.

What’s wrong with that?

Example:  property has been on the market for months.  Everyone in the association knows it is for sale . . . and vacant.  But they want the right to know who is buying it so they can decide if any of their current members wants a crack at it?

Seriously?

That’s not a “right of first refusal”.   It’s a right to discriminate and try to select your neighbor.

Outrageous conduct often results from such a mischievous law.  Many years ago I was representing a divorced single parent mother.   Who hoped to buy a condo.   But the nosy neighbors did not like her single parent status and tried to keep her out.    Big mistake.  (That’s what the Fair Housing Center is for, btw).

2. Utility Bills that are the Banks Responsibility.

This one is really rearing its’ ugly head now.

From $200 electric bills to $8500 water bills.

Every little town, village, utility, and conglomerate wants my bank clients to shell out $$$$ for the utilities that the prior, now foreclosed owners ran up a tab for.

And if you don’t pay – no service. (while the house fills up with mold and water and other damage happens)

What’s the harm in that, you say?

If everyone thinks they don’t have to pay – they won’t.

If the bill keeps getting punted down the line to the next owner – at some point (which is . . . oh, right about NOW) normal business forces will stop working.  Utilities will just keep giving “free” service to free riders.   Normal Joe who pays his bill?  Sucker.   The utility is racking up bad debts and expecting you to front the money to keep them running.   Foreclosed Phil?  Once he figures out that others will pay – he will run the air and heat all the more.  Utility Dude who runs the utility?   He doesn’t have to worry about credit checks, deposits, or even shutting people off when they don’t pay!   The bank will pay someday.

Lucas County Auditor Anita Lopez is trying to put a stop to this mess.

Other counties ought to think about the consequences of their policies too.