Perrysburg Blog

The next time you buy a house in Perrysburg you may be asked to sign this new form.

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.

Well, it’s not really a big mystery.

Three Meadows is “newer” than Colonial Acres.

In the 1800′s and 1900′s?  It was a farm – with lots of apple trees and apple orchards and mature trees and woods.

It was a huge – in fact at the time in the 1970′s – the largest master planned community in Northwest Ohio ever developed.

Mixed use.  Recreation. Commercial.  Residential.

Oh . . . and I grew up in Three Meadows.  So it’s near and dear to my heart.

But there’s another subdivision there – and it was there first:  Colonial Acres.

The houses are pretty much the same.  The layout is the same.  The location is adjacent.

What’s the difference?

The mailbox!   If the mailbox is the fancy, painted wood, brown and gold trim colored style?  You are in Three Meadows.

Regular mailbox – the house is in Colonial Acres.

I will dovetail this arcane Perrysburg real estate tip with my newest Perrysburg listing -

904 Bexton in Colonial Acres.

3 beds, den, Florida room, newer David Hahn kitchen, fireplace, all appliances.

And most importantly to me . . .  it overlooks the backyard of my best friend in Middle School and Perrysburg High School – Carlos Weeber.  We used to play with his dog Saddie adjacent to this house.  And then head out . . . . in his Porsche 914 to cause trouble and mayhem all around Perrysburg.  But those stories and the resulting arrest records/damage claims/insurance settlements must all remain sealed at this time . . .

The house in question?  Updated.  Mint condition. Impeccable.

The neighborhood?  Well, now you know about the history and design of Three Meadows/Colonial Acres.

And since the local miscreants have all gone on and moved on to professional positions in sales/management/medicine/and public service . . . the quality of the area has only gone up.

This is the back yard view – from Carlos’s old yard to help bring back my memories.

$149,900 buys it.   And the estates’ “tag sale” is in a couple of weeks if you want to pick up some great furniture.

There’s lots of buzz out there about the improving residential market.

Good stories here.  And here.

I maintain that well priced, clean and neat houses in Perrysburg that are, let me repeat, well priced – can receive multiple offers.

But the value has to be there.

And the condition has to be right.

In the City of Toledo?  A whole different scenario is playing out.   And it’s multiple offers on mortgage-less houses or REO assets.

Regular well priced listings over $100k are sell-able but not “hot” like the prototypical Perrysburg hot listing above.

The caveat I want to point out is that this is happening in effectively a 0% interest market. 

The cost of money is almost free today.

Laughable.

What will happen when that changes and rates “zoom” up to a more normal 5 or 6 or 7%?

What will happen when capital gains taxes are raised next year by our president (hint: property values will decline in the minds of investors and then real prices will fall).

What will happen when . . . . well you get the idea.

The Case-Shiller numbers from Metro Detroit are at a current level of 70.04, down from 70.95 last month and up from 67.49 one year ago. This is a change of -2.13% from last month and +2.50% from one year ago.

Is that the REAL bottom?  Is that a REAL improvement?

The Libertarian/Free Market counter argument is found HERE for your edification.

This blog is about real estate in Perrysburg  – a hyper-local look at our little tiny market.   And since “all real estate is local” it’s appropriate to note that prices in Perrysburg are firming up while the metro Toledo area, our neighbor to the north, and much of the country are in serious trouble.

Why? What?

“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!

I wrote an offer or two this week.  On Perrysburg properties.  Being sought after by investors.

It’s common.

And it’s getting to be more common.

Think about where you can invest your money:

1. Stocks.   Maybe smart.  Maybe painful.  Check out the history of FSLR, my favorite stock, and hold on.

2. Bonds.  The returns are not much though.  In fact, this week, large investors were willing to PAY money to invest in German government securities.  Imagine that strategy taken out enough years  – you will have NO money with a long enough investment.

3. Cash.

4. Gold.

5. Other investments.

6. Real estate.

I had to list a house in Toledo today – $12,000 or so.  My firm last sold it for $70,000.   Now there are some terrible facts and realities associated with such a market crash.

Ignore all of them.

Instead imagine you bought the house for $12,000.

What could you do with it?  What kind of rental income could you get? What is the upside?  What tools and skills would you need to make it into a great rental property?

Again – people are seeking out real property in this collapsed, depressed market.  To invest in.

Inventory is down by over 20%

Interest rates are at all time lows.

Rents are up and rising.

And multiple offers are hitting on good houses.

And I think fortunes may be made right now . . . in Perrysburg rental property.

It’s in Oakmont.  On Sheringham.

In the Township.

With low taxes and a great lot.

Oh, and it’s just been foreclosed.  “Gently foreclosed” as the former owner cooperated with my bank client on the way out.

3 beds.  An enclosed 3 season porch.  The finished basement needs new carpet (it’s missing).  With a nice living room that has been turned into a den.   And all new paint on the inside.

$168,500 with Fannie Mae paying up to 3.5% of your closing cost and or buying you new appliances.

1. Have a finished basement without a back up plan for the sump pump.   The power does go out . . . and if your plan is to call Toledo Edison and beg for faster service . . . .

2. Get your home/budget/mortgage in trouble and not talk to people.   It’s public knowledge.  Some people are going to charge you by the hour and do nothing – some are going to pester you on the phone and do nothing.   Get some special help.

3. Buy an extra house.   Not now.  Not in this market.   Sell your current one first please.

4. Buy REO property to “flip”.  You are not going to do it.  You are not going to make money.   There are lots of good reasons to buy REO as an investment – flipping is not one of them.

5. Pay someone upfront to sell/market/advertise your house.  Just plain bad business.

6. Hire a real estate agent without asking a page or two of questions about them and for them to cogently answer.  Many agents are abandoning the business right now (that’s a good thing!).  Some are carrying on to clients like they are full time producers while they have other jobs and even live in another state!

7. Fail to understand that the first showing of your house for sale in Perrysburg will occur ON THE COMPUTER.  Via the photos that your marketing agent has taken.   Failure to understand this costs you time, money, and sales power.

8. Don’t be pressured into buying right now.   Not by anyone.   There are good deals.   There are smart buys.  There are great personal business cases to be made for purchasing a home for many families.   There are also a lot of fear-based sales tactics that can lead you into a terrible decision.

As soon as the preliminary work is done this great 2 story with 5 beds and a finished basement will be going on the market.

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

Which I do from time to time.

Like today.   I just listed 3 homes in Toledo.   1 in Elmore.  1 in Oak Harbour.  And 2 in Perrysburg.

One in Perrysburg is on Eckel Junction – just down the road from where I used to own a house.  So . . . I know the neighborhood quite well.

You can walk over to Rivercrest Park – with or without the kids.  With or without the dog – but he ALWAYS wanted to go because there are always a lot of little and big dogs to sniff and or wag your tail at.    There are ball games going on.   The Y is right down the street.   And, of course, your kids can walk or ride to Ft. Meigs Elementary.

So it’s a pretty nice area to live in.

This house?  One owner.  Center-hall floor plan.  3 car garage.  And these are all very good features.   It feels “big” and has 2 laundry rooms – one up and one down.  The basement is finished too.

$280′s.   With a, did I mention it already . . . 3 car garage.

It is in true mint condition.

I admit it has been hard — for there are 2 markets in my world right now.

There is the Toledo Residential Market.   You know the one.  Lot’s of downward price pressure.   Some serious real estate problems that a lot of serious people are doing their best to fix.   That’s one market.

Then there is, at least in the scope of this blog, the Perrysburg market.   Fewer houses than normal on the market.   Less price pressure.   But still the buyers who are buying are not dumb.   They look over the Maumee River or back to whatever market they are moving here from . . . and they want a deal.   Even in little old Perrysburg.

They want the house to be in perfect condition.

With everything working perfectly.

And they want to move in right now.

Both markets are functioning but they are functioning differently.

Perrysburg buyers need to be very careful with the pricing strategy they are using and very sure of not only their financing options but also the ceiling they want to be at in any competitive bid situation (especially for REO houses in Pburg . . . ).

More and more loans are getting rejected.   Appraisals are a problem even in Perrysburg.   The old “throw ‘em an offer and see if it sticks / hood of the car pricing approach” does not work out very well in these times.

So – how do I read the market?

It’s really the same as it ever was!

The best homes in the best condition sell for the best price at the best timing possible.

If your house is on the market and no one is looking – it’s probably a pricing problem and not a marketing problem.

My guess is that the buyers are already aware of your house – they have just rejected it before getting inside of it.