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.

All is new in the Spring market . . .

Except if your house failed to sell in 2011.  

Why?

What happened?

Many would say:

1. It was not marketed properly.

If your last agent is/was broke and destitute and/or does not use internet marketing . . . there may be a correlation with these salient facts and your unsold home.  Just saying!

2. It was not in good condition.

Maybe no one thought to ask the buyers that looked what THEY thought.  Maybe your dog/cat/teenager scared away the traffic.  Maybe the directly competing houses blew yours away.

3. It was not a team effort. 

There should be good and effective communication between the home owner and the listing agent.   They must work together.

4. It was not properly priced.

This is the single most important factor today – price.   It beats 1,2,3 above.  It trumps everything including the price of gasoline, the time of year, and is equal to location.

Price is the KEY dynamic.

Ignore it and your home will not sell.

How should you price it?  Who should you talk to?  What comparable sales are good?  What adjustments do you use?  What repairs do you think I should do?

An open house won’t fix an incorrect price.

A new Realtor won’t fix it!

Price is absolutely critical in the Perrysburg real estate market today.

And the language is simple and plain:

“Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30  years in federal prison or $1,000,000 fine, or both.  It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution.”

But the use of the FBI logo – that’s new!

But unlike the FBI warning that auto-plays before every DVD you own . . . . this one has teeth.  And real meaning.  Because the real price of mortgage fraud is HUGE in Ohio.

If you read the form – and believe me, most people read NONE of what they sign at typical real estate closings . . . . there are 3 choices to make.  Simple choices.  Choices you could make and not even think about . . . . but think about these.

Because someday someone will lose a house, lose a job, and or lose their freedom over what box they blithely or fraudulently checked off right here!

“The borrower must then select the occupancy for the specific property that is being financed:

• Primary Residence – Occupied by Borrower(s) within sixty (60) days of closing as stated in the Security Instrument I/we excuted.
• Second Home – To be occupied by the Borrower(s) as a second home (vacation, etc) while maintaining principal residence elsewhere.
• Investment Property – Not occupied by Borrower.   Purchased as an investment to be held or rented.”

Sounds innocent.   I am sure than an innocent mistake here will be forgiven . . . right?

No.

Right after this you see this language:

“I/we acknowledge it is illegal for a person(s) to make a false statement regarding occupancy of property being financed in a loan and credit application and that we are subject to prosecution under Section 1001, 1010 and 1014 under Title 18 of the United States Code”

Opportunity:  Federally insured mortgage.

Opportunity:  Federally regulated PMI coverage.

Opportunity: Federally funded/provided/controlled REO property.

Risk: Fines and Jail.

Your intent, memory, confusion, etc. will not matter.   Making a single false statement will matter.

Apply the “sunlight” standard to this and all other real estate matters.  Do it in the bright light of day – out in the sunshine.  Don’t shade the truth.  Don’t guess.  Don’t think about being clever.

If you are living in the house . . . you are an owner who is an occupant.

If you are “living in the house” and you keep another address you are not.

Lying on loan applications and HUD-1′s and occupancy certifications has always been both wrong illegal.

It’s now going to involve the FBI.

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!

If you are a landlord in Perrysburg in 2011 you have much to be thankful for.

Your property is most likely rented.

Your tenants are on “good behavior mode” as they know that if they have to look for another 43551 rental house or condo it will not go well.

Your bank account is probably in better shape with rent receipts than if you had to sell and mark your asset to market on the bank/REO depressed current market.

And there are no hassles in Perrysburg from the local constabulary . . . unlike a rather large and more regulatory rapacious city just to the north that I will not mention.

There are – at least according to my Mark 1 Eyeball – fewer for rent signs up in Perrysburg now than in recent memory.   Only 1 of my managed properties and 0 of my own properties has a vacancy.

The WSJ has a nice piece on the situation here.

Implications?

If you are fully invested in the stock market . . . . you must be addicted to risk.   Diversify into some nice multifamily in Perrysburg or Sylvania.

If you are fully rented out . . . now is the time to raise your rents.

If you are looking to get out of the rental market . . . not a bad time to sell your multifamily property in Perrysburg (since values are based on cash flow imho).

Because I just wrote an offer and got a home sale pending for the “child” of a client.

Yep.   Someone’s “little kid”.   Whose dad I sold a house for many, many moons ago.

Now buying a home with me and my team.  Taking out a mortgage.  Signing legal documents.

Great.

Which means:

1. Either I have been selling houses for over 20 years. Or,

2. There is a time warp and a dimensional shift has occurred since I don’t feel that old.

In any event it is always a compliment to be chosen to help a man/woman/family find and buy their new home.

It’s a compliment to have loyal, faithful clients – who often turn into friends.

But really – your kids are growing up way to fast!

For some . . . it’s a deal breaker.

What?

WHICH Perrysburg elementary school zone the house in question is in . . .

Frank/Toth/Woodland/Ft. Meigs are all excellent and each has its’ backers and boosters and diehards.   But buyers should beware that distract boundaries for elementary schools change.   Several years ago many homes that were “in” the Ft. Meigs district were “out” due to overcrowding.   I often do not put the elementary school name in the advertising or online content for a Perrysburg single family listing because it is not guaranteed.

But my team and I do use this little tool.

You can too.   It’s the current listing of addresses in the Perrysburg School District keyed to elementary schools.

Perrysburg School Road Code Book

Trivia Test:  I can tell how long you have live in Perrysburg if you know what Pine and Elm were . . .

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.

The market is in flux.

The job market is abysmal.

The broad economy in Northwest Ohio – horrible.

The stock market -

And . . . 30 year fixed money for houses 3.99%.

FHA loans as low as 3.75%.

Amazing.   We are talking record low interest rates.  Breaking ALL modern records.

Why?  It seems that with the volatility in every other part of the economy, large investors still want to have money invested that makes money and getting mortgage backed securities that have a government approved stamp and pays 3.5% to 4.5% seems like the best bet.

But . . . that does not make it “a great time to buy a house” as the National Association of REALTORS chief economist can always be faithfully predicted to spout.   It’s only a great time to buy a house if it really is for you and your family.   How is your credit?  Your savings?  Your rainy day fund?  Your other debts gone/under control/closed out?  Your job?  Your current lease ending?   Get ALL of that right . . . . get the right house . . . and with these ridiculously low interest rates . . . it might make sense to buy in Perrysburg right now.

The mortgage went unpaid.

Everything started being delayed – repairs, etc.

The bank foreclosed.

The house went for sale.

I sold it.

A local family bought it  . . . because they cared about the street/neighborhood/city.

They have repaired and renovated it . . .

Here is the “before and after” shot . . .

Do you think that the neighbors are happy?