Perrysburg Blog

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.

Because I am always ready and willing to try to give an answer or a quote.

This weekend they did a story about the dangers of missing one mortgage payment.

Let’s just put it this way - you do NOT want to miss “just one mortgage payment”.

Read about it here:  Missed Payment Portends Crisis.

What is happening - happening right now in Perrysburg - not in a magazine article or a newspaper story - but actually happening to good people in Perrysburg right now is shameful.   It is wrong.  It is a sign of how out of kilter our nation is right now.

Toledo double taxing its’ citizens.

Bowling Green sending us a new corporate HQ.

Toledo laying off their police force.

All of these things tend to increase residential housing demand and values in our little town of Perrysburg.

Now I just learned that in one years time - which if you hadn’t noticed seems to arrive very much faster today than it did years ago - in April of 2010 the rules re. lead based paint are going to change.

Currently any Realtor selling any home built before 1978 has to provide a Lead Based Paint Disclosure to the buyer.   This is a trivial thing - for not once have I ever met a seller that had known that he had lead based paint in their house.  No one tests - so no one knows.

So the disclosure has what value?

Zero.

Nada.

None.

Year after year Realtors have been giving disclosures that say nothing to people who know nothing so that people can not read them but sign them anyway.

All at the behest of the Federal government.  (And you are worried about them running GM?)

But that is ALL going to change.

Starting on 4/22/2010 ALL regular consumers and normal Joes who buy investment property - duplexes, triplexes, 4-plexes, and even single family houses - for use as rental properties have to abide by the rules that giant “Market Rate” owners of thousands of properties have to abide by.

Such as:

-Testing each and every unit ($500+)

-Building and keeping and supply an audit-proof paper trail on all work done in each rental unit.  Fine for bad paperwork?  Up to $33,000!!!!

-Containing ANY work area in ANY pre-1978 rental unit just like it is an asbestos contamination zone.

-Only using  power tools with HEPA attachments in such units.

-Seeing that ALL personal that do ANY work in such units are trained and certified.

Painting more than 6 square feet of a pre-1978 built rental property?  You are most likely going to have to hire a professional  and PAY BIG MONEY.  Or else test and prove you have no lead in your unit.

How in the world does this help Perrysburg?

Think about it . . . the NEWER suburbs with NEWER rental properties are EXEMPT from this madness.

If you have a post 1978 rental property you can just smile at this insanity.  If you want to sell it, and I am your listing agent, we will make sure to point out in our marketing that it is LEAD FREE and EXEMPT from the new law.   This will, in my opinion, have a huge impact on values and investment property demand.  Most of Perrysburgs RENTAL units are post-1978.

I could go on . . . trainers need to be EPA certified, firms need to be certified, if a child comes into contact with dust from a building as they walk on the sidewalk . . . you cannot imagine what this is going to cost.

But not to the majority of Perrysburg rental units.

Duplexes “in the Boundary’s” are hit.

Some units in Southwood Park . . . maybe.

Three Meadows  - safe.

Most of the Township - safe.

The City of Toledo - in 10 months you won’t want to own so much as a stick of wood in that town if you are a property investor.

Not unless you are either a lawyer or a commercial painting contractor.

Along with TARP and STIMULUS, and all kinds of other new, wasteful government programs, the munificent leaders in our nations’ capital have proffered a little stimulus to the housing market.

Now, if you read this blog, you know that Perrysburg real estate has taken it on the chin.

Many have put off buying  -

Many have given up on buying -

Many buyers are confused.

But when the Feds want to shovel $7 or $8k into your hands, just for doing something you were going to do . . . well, Mama did not raise a dummy.   You follow their rules when buying, and take the money.

Facts on the ground:

• Northwest Ohio real estate prices have dropped by 25-30% in many areas.
• Interest rates are under 5%.
• Financing is still available with as little as 3.5% down.
• First Time Home Buyer Tax Credit.

Here’s a summary of how the tax credit works:

• Tax credit is 10% of the purchase price of your home ($8,000 maximum).
• Must be your principal residence.
• Buyer, or spouse, must NOT have owned another principal residence within the previous three years.
• Property must be the buyers’ principal residence for 36 months after purchase to avoid repaying the tax credit.
• Tax credit begins to phase out if modified adjusted gross income exceeds $75,000. No tax credit is available if your modified adjusted gross income exceeds $95,000 ($170,000 if you file jointly).
• You must purchase between January 1, 2009 and November 30, 2009.
• Any amount of the tax credit not used to reduce your income tax owed may be added to your tax refund check.

ALL the juicy and monetary details are HERE.

Now, reading the rules, applying them to Pburg, we are talking about a lot of possible homes - perhaps in Perry Commons/Pheasant Run or Three Meadows, or even a Forrester/Wehrle resale.

You can always let me know if you need help -  the Jon Modene Team closed 17 houses last month and we fit in at least 3 more this month!

Most people know that Perrysburg prices have dropped (a few Realtors surprisingly have not gotten that memo - but I don’t want to be snarky . . .)

But what of taxes?

Property taxes should be coming down too, n’est pas?

I do not believe that the County automatically adjusts taxes down.   They must have missed that memo too!

So what can I do to find out the history of taxes.  Not that hard if you have a record of old MLS comparable sales . . . and here is what we find:

We find that property taxes in Perrysburg have relentlessly increased.

The 3 bed, 1.5 bath house in the Southwood Park subdivision of Perrysburg would cost you $393 in 1/2 year taxes back in 1984.

In 1994 that same house would cost the owner $557.

In 2004 your 1/2 tax bill would have been $1076.

Today?  You are may be looking at almost $1400 per 1/2 year for a 3 bed, 1.5 bath in Southwood Park (Edgewood, Southwood, etc. by the big blue city water tower for those who do not think in terms of subdivisions like I do!) (Caveat: Not everyone pays the same tax amount for the same home - it depends when you were last assessed/appraised by the County, how accurate your assessment is, and if you have recently filed for a reappraisal).

$393 to $1400.   I think that is an increase.

But - property values have declined in 2006, 2007, 2008 and this year.

I wonder if property taxes have gone down since 2007?

What is your experience?

Enjoy your tea!

I love reading. (Off on a rabbit trail here, but I LOVE the free book catalog www.Librarything.com.  AMAZING.  Get yourself an account and put your own books in there . . . )

Books about history.  Books about business.  Books about science.  Even about birds.

The Dodo bird was friendly with humans - even fearless.  Dodo’s were known to man - one was even captured and brought alive to Europe.  Then they were dead.  Extinct.  In the 1600’s.   A testimony to man’s thoughtlessness for the wonderful creation we have been given.

But I digress.   Because just as quickly, just as suddenly, and with just as little fanfare - the local mortgage broker has become endangered and now almost extinct.

Where there was once 20+ mortgage brokerages in Toledo, there is now only 1 or 2 that I can find.

90% extinct.

In 2 years.

(N.B. A mortgage BROKERAGE is different from a mortgage BANKER and both are different from a full service BANK that makes mortgages.   I am only writing about mortgage brokers)

Where did they go?  Why are they gone?  What does this mean?

First of all I don’t know.  Some went into other businesses.  Some joined banks to sell mortgage products.  Some vanished -  POOF -  no forwarding address.

Why?  The great loan fiasco / mortgage crisis has caused their extermination.   Making Liar Loans, No-Doc Loans, Alt-A loans, and what I call “Pre Foreclosure” Loans and then selling them to Fannie Mae and Freddie Mac was great sport.  Until the music stopped and the light got turned on and the party was over.

What does this mean?  No one knows yet.   Most likely a little less competition for consumers.  Hopefully higher quality loans that will not be in danger of failure/foreclosure in the future.

The closing of mortgage broker is not a Toledo phenomenon.  All over America the lights have been turned off at hundreds of these firms.   The pipelines they filled are empty and now torn up.  The giant industry they built has crashed.

And hardly anyone noticed.  Just like the Dodo Bird.