“REO” is of course banked owned foreclosed property.

And it’s strange how things sometimes run in streaks.

Today – I wrote an offer on very sharp 43551 REO listing.

Showed one.

Listed one.

That’s all normal . . . here is what is interesting:

1. A new RIVER ROAD REO property (30571 East River Rd.)  On the water.  That does not happen every day – in fact it’s incredibly rare.  $175k.  2500 sq. feet.  Township with Rossford Schools.  Last sold for $100k more . . .

2. A “builder’s own home” type REO listing.  We are putting new carpeting in it as I write this – with a 3 car garage, finished basement, and all the bling/bling you would expect.  $180s’ with close to 3000 sq. feet – and I think it’s worth LOTS more . . .it’s open this Sunday from 1 to 3.  507 Harrison Dr. in Shawnee Trace.  It just might be underpriced by $30k . . . at least!

There are a lot of them!

They come here to buy.

They come here because Perrysburg real estate is a very safe buy.

They come here because of the schools, the lifestyle, and obviously the employment.

And they buy a lot of real estate -  MSNBC.com reports that foreign buyers bought over $80 billion in US property in 2010.  That was up from $66 billion in 2009.

I have sold property in and around Perrysburg to buyers from the Ukraine, Poland, Russia, France, Great Brittan, China, Vietnam, Australia, Japan, Saudi Arabia, Syria, Egypt, Italy, and Canada (is Canada that foreign?).

What are foreign buyers looking for in Perrysburg?  The exact same thing that any buyer is -  a good deal, a great floor plan, a nice lot, and no surprises.

When many foreign buyers look at our prices and values I believe that they inwardly, secretly chuckle at how cheap our prices are and how large our lots are.

The best thing to do is look at a map – maps are my favorite tool!

Here’s one view of the flow of “Euro Buyers” into the US, courtesy of Trulia.com

One thing to think about – the three largest home sales EVER in America were all to . . .  foreign buyers.  This is one, in California.  It sold for $100,000,000.  To a Russian.

I talked to a friend of mine who knows the Russian speaking Realtor who wrote the contract for Yuri Milner, the Google/Hedge Fund type investor.  I think that he was sad – he will never, ever in all of his career close on a deal that large again.  Must be sad to realize that!

It needs some “work” done on it.

It needs some home improvement . . .

You get it under contract and then either discover this fact or are made aware of it by your home inspector.

What NOT to do:

-Demand that the seller reduce the price or put a new roof on . . . if the seller is the bank that has foreclosed on the home and is offering it for sale.

-Go to the house before the closing and start putting your own new roof on.

BOTH of these two tactics have just been tried by “my” buyers.

All I can do after that has occurred is try to manage the triage of tragedy that will result.

A better idea:

1. Add the estimated repair costs onto your mortgage up front – when we are bidding on the house.

2. Add the repairs yourself – after the closing – with cash/credit/pop bottle money.

3. Ask, nicely, the nice seller to do the work before the closing, in a nice manner.   We all know that the buyer is “in charge” right now . . . but nice buyers get better houses.  With prettier things added.  My mother taught me that kindness is never out of style in the Midwest.

4. Attempt to add a repair escrow to your mortgage loan and offer.   This is easy to do with the right credit/loan/lender/loan officer.   This is impossible to do with the wrong loan/hopes.  You want a new roof, new finished basement, and a $7000 appliance allowance?  On your FHA loan?  Not going to happen.  This is easier to do with a conventional loan.  It’s possible to do with an FHA loan . . . but that takes it to a “203k” loan product which would often be the basis of an entirely new offer on a house or condo.

5. Buying a HUD home with a loan?  HUD will usually have a “repair escrow” amount priced into the house.  That’s not money they are going to give you . . . rather it’s money that YOU can borrow and that HUD will loan you if you use an FHA mortgage.   It gets complicated . . . so see me if/when you want to try this.

and planning . . .

and looking . . .

to buy houses.

All well and good.

But for many the operative question is “what interest rates are out there”?

Today’s rates:

1. 30 Year Fixed money is going to cost you 4.125%

2. 15 Year Fixed money is going to cost you 3.375%

3. FHA money is going to cost you 4.00%

4. VA money – 4.00% also

5. Rural money?  None to be had – waiting for more.

6. You want to buy an investment property?  20% down required. 

Notes:  Sellers can contribute 6% back to buyers on FHA loans and 8% back on VA loans and 3% to 6% on conventional loans.

Here is the trend chart, used by permission of mortgage-x.com . . .

These are really historical lows.   I can imagine only a few instances where a buyer will want/need an ARM . . . .  so buyer beware!  And what you REALLY need to be aware and beware of is the dizzying array of constantly changing rules and strictures on loan underwriting and loan approvals and loan appraisals – each deal is both harder to close and taking more time to close.

But they are back on the market after the prior buyer’s other deal did not close.

And they are a GREAT INVESTMENT!

They are just like Perrysburg 4 unit apartments, except located in Sylvania right off of McCord north of Sylvania Ave.

1. Fully Leased.

2. Great rents.

3. Many long-term tenants.

4. Excellent schools to draw renters in.

5. $3600 to $4600 monthly rental income per building.

Oh . . . and these 4 great 4 unit apartments (they feel more like condos – and one building has units with basements and fireplaces and attached garages) are being offered with OWNER FINANCING.

Since there is no mortgage . . . my out of state client said “why not”?

More details if you email or call me!

You can see my flyer here:

Sylvania 4 Apartment Buildings

Disclaimer:  no snarky comments or inferences in this post should be construed as anything but an endorsement for my Dentist – Dr. Christopher Clark.  I like him.  He is incredibly talented.  He knows the ins/outs and tools/tactics to do any dental procedure with elan and skill and care.

But . . . sometimes selling a house in Perrysburg today IS like going to your dentist and getting root canal.  Which I just did with Dr. Clark.

It takes time.

It takes multiple appointments.

It takes effort.

It takes reasonable skill and training.

The dentist has to have the right tools and facilities.

The dentist has to have the right support staff.

You want your dentist to be . . . actually working full time in and on dentistry.  

All of these things are similar in my pursuit of helping clients sell their real estate and my dentists skill and care at removing dental problems.

(But . . . I sadly note . . . that I cannot give you laughing gas or an anesthetic shot to make your pain fade for a couple of hours).

As with the average root canal . . . in selling a home today there is perhaps going to be some pain involved.

Some emotional conflict.

Some stress and or trepidation.

But . . . if it has to be done and needs to be done and the situation and circumstances tell you to get it done . . .  what else can you do?

You get it done.

Practice.

Preparation.

Organization.

Research.

All equal to success in lots of endeavors.   Like in baseball.   And in real estate.

Do it . . . and your ducks are in a row.

Fail?  You will whiff.  You will miss.  You will not win.

If you strike out in baseball . . . you get another at bat . . . usually.

In real estate?  You may lose the home you HAD to have.  The “perfect house”.

And, not surprisingly, real estate agent batting averages, proficiency, and skill set strength might seem to matter.

Especially in light of the new NAR report on recent sales.

If you peel away the data . . . you will find that the percentage of pending sales that blew up – busted out – failed to close . . . has DOUBLED.

That’s a HUGE increase.

I believe there are a couple of reasons:

1. More and more appraisal problems with pending sales.

2. More REO transactions which are very hard to get closed.

3. More part time / old timey real estate agents who don’t sell anymore and don’t swim in these treacherous waters anymore.

4. Short sales – the modern bane of buyers, sellers, and agents.

Add them all up . . . . and it’s a miracle MORE deals than the 18% reported are not blowing up!

(by the way – it was 9% of all pending deals blowing up just a year ago . . . )

What to do?

Get accurate market data.

Thinking about buying a short sale?  Open your eyes, get the facts, and get some help.

Only hire an experienced, competent, skilled agent.

You have a good year.

You sell a lot of houses.

You build your team.

You get to meet and work with a lot of great families and buyers and sellers.

But you did not get there by yourself.   And you certainly do not get to take credit.  And you should not trumpet “I am number 1!”

No.

But I do want to thank my dad – Dave Modene.  He was and is my example for salesmanship, service, and integrity.   I hope that “the apple did not fall” too far from his tree.    He was the top salesman for his company – setting and breaking national sales records.   Then they changed the rules to make it tougher for him . . . he won again anyway.   Then they promoted him.  And promoted him.  And finally he said “NO” . . . “I am staying in Perrysburg”.   He likes it here.   He even turned down a new “mega agency” they put together for him in Minneapolis – which if you are selling products to Lutherans is the second best place in America to be!

So – when I found this old ad . . . It caused me to realize the you should not forget to be thankful for the help and training and examples your father provided.  If I ever sell you a home or help you sell yours – I had a great teacher.

N.B. – My brother Dave – he has carried on the tradition too!

We have a saying that you have to have heard before . . . something about location . . . perhaps this is familiar to you?

How about adjacent to Woodland Elementary?    Adjacent to Woodlands Park and Ft. Imagination?

Hard to beat this location!

You want more information – hit me with an email at jon@modene.com

And I don’t mean the weather outside.

I mean the part of the local real estate market that is out of balance in a “good” way.

It’s the apartment/rental part.

Fewer vacancies.  If you do a quick craigslist scan you will find only about 60 ads for “Perrysburg” in the content in rentals.

There are normally a lot more.    And some of those listed are “wanted” postings.

Signs on the streets?  Fewer than normal, according to my Mark 1 Eyeball.

I am, as usual, getting LOTS of calls but all of my managed properties are full.   My own condos/apartments?  Fully rented.

And if you drive around you will see a couple of new apartment complexes being built.  They represent millions of dollars of new construction that has replaced the single family construction contraction.

Which mirrors what the WSJ says here.

Implications? Perrysburg is hot – if you are a landlord. You can be picky.  You can finally raise your rental amounts.   SFR houses are a good play if you want to diversify into real estate and hold (and rent) in Perrysburg.   Duplexes and apartment building in the 43551?  VERY hard to find for sale right now.

Buyer/Renter?   Look hard.  Look often.  Signs/The Blade/Sentinel Trib/Craigslist and Google search for available properties.   Be prepared to pay more for a nice house to lease.   They are scarce right now (at least compared to a year ago!).