Which starts most Thursdays at 3PM.

And is on today, for the first time, in 2012.

It’s a great Perrysburg tradition, filling the first block or two of Louisiana Ave. in downtown Perrysburg.

I personally think that they should block off the street . . . but it’s running fine as it is, so why make changes.

I have a report, from one of my crack in the field reporters, that there are now fresh macaroons being sold there that are reminiscent of my wife and my favorite treat in NYC and Paris – Laduree.

Make what use of that you will . . .

But I will focus on this one . . . . and it’s a building lot.

In the lovely Sanctuary subdivision right off West River Road.

This lot?  Large, River Road address, access/service road for access and entry, excellent Perrysburg Schools . . . and the exclusive address/location of the Sanctuary.

My very (did I mention VERY . . .?) motivated sellers no longer need the lot – which sold to a builder for $72,500 in 2006 and they picked up to build on.

Our price?   A ridiculous $39k.

For a large building lot in the Sanctuary.

Amazing!

Call me very fast!

The sky is a little brighter this week.

The sun has been shining more in Perrysburg.

And there are lots more accepted offers and buyer offer writing action in play.

Even though things could change.

And even though national indices are split – with sales down and values up.

It’s a confusing market.

But . . . “all real estate is local”.

So here is my take on the recent spate of action in the 43551:

Affordability

• Affordability is at its highest level in the past several decades.
• Many Perrysburg homes now cost 30-40% less than they did 6 or 7 years ago.

Pent-Up Demand

• Many of today’s buyers need to buy because their families have grown, they just moved here, they got a promotion or a raise, and other valid reasons.
• Sellers who hung on during our real estate decline have paid down debt (including mortgage debt), saved their money, and are now ready to move up.

Low Interest Rates

• Interest rates for 30-year fixed-rate mortgages remain below 4% and rates for 15-year mortgages are even less.
• Buyers are realizing that these rates are certain to rise if our national economy regains it footing.

Buyers Believe There’s Little Downside

• Buyers who were previously afraid they would lose money if they bought a home are now realizing that the risk is reduced and that they have waited long enough.
• Prices in the Perrysburg real estate market have stabilized in most segments of the market.
• The grim bloodletting in the suburbs is almost over – with values rationalized and the flight to safety of steadier values in the periphery of Toledo increasing values.

Cheaper To Own Than Rent

• It used to be cheaper to rent than own a home, but that has changed.
• Rents are soaring and now exceed the cost of home ownership in many instances.
• Given a choice, most renters would rather own their own home than pay off their landlord’s mortgage with their rent payments.

According to this report . . . YES.

That will be great news.

I am however reminded of Mr. Reality.   Standing right there, outside my office here in Perrysburg.

And that was Mr. Reality slapping me and my clients in the face with . . . reality.

For I am getting ready to close a short sale here in Perrysburg next week.

A FIVE YEAR short sale.

Five years on the market, in default, rented, managed, negotiated, appraised, inspected – then repeat over and over again.

And I am not complaining.

I am happy to be able to close it.   It is very satisfying.  The clients are thrilled.   The customers are thrilled.   The neighbors will be thrilled.   The banks involved are acting in their own best interest.

But . . . I feel the sting of reality.

Banks are not going to make short sales easy.

Or fast.

Or painless.

If they do the whole mortgage market will implode.

Short sales are an excellent idea.   When the house is no longer needed or wanted by the owner a short sale helps the neighbors.   It stabilizes the subdivision.   It’s a great idea and it works.

But please, don’t believe that it’s going to be fast.   Don’t be a Real Estate Pollyanna.

It was a great meeting.   I learned a lot.  I will be making some changes based on what I learned.

One upshot:  Zillow, Trulia, Realtor.com, and other real estate technology companies are relentlessly improving.

If you use one of these applications on your iPad . . . they seem to average an app update about every 2 weeks.

When our local Board of Realtors looks at a platform change – that’s a 3 year process.

Even a software update to our current MLS is a 6 month to 12 month action item . . .

Relentless change by vendors with millions of users vs a local board with 1200 users simply cannot be competed with.

So I expect that the search tools consumers use will continue to outpace the tools used by Realtors behind closed walls.

There is also a blizzard of new and diverse applications that hit the market for smartphones every day.

There are too many to keep up with.

So when I meet up with some agents from other areas, and we talk at length while breaking bread, it invariably happens now that one will pull out an iPhone, show me an app that solved a problem or provides a better solution . . . and then in 30 seconds it is up and running on my iPhone.

In the past?  That was a trip back home.   A phone call to arrange a demo.  A CD arriving to install.  Time to test and evaluate.  Then a purchase decision with training or data conversion to follow.

Now?

Done in one minute.  I might risk $1.99 to $3.99.

The pace of change is faster.   The cost of evaluation and a mistake is miniscule.

What’s next?  My guesses:

Agents ability to predict what buyers are looking for and what they need to look at – driven by smart programming and algorithms is coming.

Total elimination of paper in the transaction is on the horizon – and I look forward to that.

Tools to help buyers predict the value of what they are looking at.

Tools and apps to help sellers rank agents or rate agents.

Tools and apps to allow better mortgage decisions, better title decisions, and better house buying decisions.

All coming soon – in a disruptive, chaotic manner.

Think back, if you can, to how you web tools changed travel, stock buying, mutual funds, and shopping for a car.

That’s the kind of technology change awaiting real estate.

And they are interesting.    The Blade called – asking me if Toledo real estate is picking up.   I don’t see it – but Perrysburg sellers do.  They are raising their prices.

And Perrysburg buyers are buying more houses (closed sales were down March 2012 vs. March 2011 but there are many more “sale pending” deals in the pipeline.

These are MLS only numbers for single family sales – I am not putting in condos, duplexes, etc.

Upshot:  Fewer houses closed in Q1 2012 vs. 2011

Fewer houses on the market.

More houses sales pending.

Median price in Perrysburg for Q1 2012 $189k.   For $87/sq. foot.

(Just click on the images below for full size legible versions . . . )

New on the market – and redone inside by the corporate owner with new paint, carpet, and appliances.

Rossford Schools in Perrysburg Township.

4 beds and 2.5 baths.   An interesting and 60% finished hidden room off of the master closet . . . retreat?  Office?  Safe house?  You decide.

$140,900 is all – and there is a “HomePath” option for any buyer:  no appraisal.  No PMI.  All closing costs can be financed also.

2 phone calls.

2 different out of town investors.

One coming to town.

One just left.

Both to visit their new, sure-fire, can’t lose real estate investments.

The one coming will be here on Saturday.  Driving in from over 1000 miles away.  And have closed on a house in Toledo that they have never seen, never been to, and have never even seen recent photos of.    It last sold for $70,000 many, many years ago.   They paid $15,000 cash for it at an auction.   Given the neighborhood and the amount of vandalism and property theft in 5 year sitting empty houses . . . I hope that they find it intact.

But they may find it “stripped, clipped, and ripped” and in need of $30,000 in repairs.

Which will mean that their investment is now worthless.

The other call?

This owner had just gotten home.

After driving to Toledo full of hope and expectation.   For she was the “winner” of 3 lots – also bought at auction – with no due diligence, inspection, or planning.

They are inner city lots – abandoned by their former owners for taxes.   Some enterprising entrepreneur bought it at the tax sale for $5.00.

That’s correct . . . $5.

This investor paid $2000 for 3 lots – so the Toledoan didn’t lose money.  He or she made a 400% rate of return.  And that’s slightly more than Huntington is paying today . . . .

The new investor?   I carefully and nicely explained to her the new reality:

-The lots were worth nothing.

-The lots are now worth nothing.

-Her $2000 is gone.

-Rather than lose more money in commissions or building costs or something crazy – just walk away.

That $2000 is a great lesson.    A wonderful lesson.   And if you have the right perspective it’s a far cheaper lesson than the $15,000 one the other investors are going to get this weekend when they pull into Toledo.

Do not buy real estate at auction on the internet in Toledo.

Not unless you want a very expensive lesson.

We had a great time and there was no popcorn left . . . and it was a really good movie.

Some photos taken by my wife . . . .

I did have to hire some auxiliary hostesses – my daughter Hannah and her friend Emily. 

The one in which I tell you all the terrible ways that your loan/loan application/deal can implode?

Well it was true.

And it is accurate.

But it was not very, how can I put this?   It was not very “PROACTIVE”.

Helpful would be a better word.

So I want to be helpful.

And you can therefore download a free copy of my newest, latest, greatest Special Report right HERE. 

And it will proactively, and helpfully tell you what you can do to AVOID having your deal/loan/closing implode.

Because I always try to be helpful!