Perrysburg Blog

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!

It’s too early (still 2011) to do a 2011 recap . . . or a 2011 statistical look at the numbers in the 43551 – you can be sure that those will be coming soon to this space.

But I was thinking about what was hard to do in Perrysburg real estate in 2011.  

So, I will try to “put lipstick on a pig” and share my problems with you in a positive and affirming manner!  

1. Getting or giving an accurate “quick sale value” was very hard to do in 2011.  In Perrysburg.  In Toledo.  The market was shifting and that made the guessing game of providing quick sale numbers very hard (you don’t want to know and you don’t ever want to need a “quick sale valuation” for your house!)

2. Real estate team management was hard.  My team?  Shifted.  One long time assistant retired.  One decided to, rather sensibly, take care of newborn twin boys!  And one just vanished!  New hires and new licensed team additions have made my team larger than ever.

3. Seeing people you sold a house to . . . . lose it to the bank.  Very, very hard.

4. Watch mold grow in great houses – very hard.  Sometimes the rules and regulations conspire to make a house sit in the shadow inventory of foreclosure-land.  And then bad things can happen.  It’s a dirty rotten shame.

5. Managing growth and the new market.   My team and I have never, ever sold more homes for more money.  And I have added several new lead systems.  Which has added a couple of thousand leads to manage.  Very hard.  

6. Telling buyer clients to be careful.  Just because rates are very, very low does not mean that you should spend all your income on that special house.  Not many people like to hear “no”.

7. Manage real estate deals.  Very, very hard.   Every part of every deal has changed in the past 4 years.  Financial rules.  Appraisal rules.  Valuation rules.  Stress levels are high.  Equity is low.  Jobs are under pressure if you are being transferred in or out.  When I have a “happy” closing – with neither the seller or the buyer under duress or stress or distress?  That’s actually notable today.

8. Telling the truth to sellers about the current and accurate value of their home.  Well . . . not hard.  But sometimes painful.  Or distressing.  But it has to be done.

9. Keeping up with the literature.   Never, ever been harder.  I maintain a few “professional designations” for my real estate career.  It’s a little inside industry inside real estate sales and management.  I have the ABR degree.  The CRP degree.  The CRS. The CDPE designation.  About 8 or 10 of them.  And they all take up biannual or triennial accreditation.  Plus my Ohio real estate broker’s license continuing education.  Plus the various real estate and sales and marketing books I love to read.  Too much in 2011.  For the first time ever I have not yet bought or even perused my favorite authors newest book – Seth Godin’s “We Are All Weird”

10. The iPad.  Love it.  Use it every day for real estate and reading (I did get tired of my dear wife hinting at me to “put that iPad down” . . . so I very cleverly bought her one!).  But it’s been a struggle to get forms and contract on it to work right.  Maybe my software engineer son can “make an app” for that in 2012.

Why?  I only write about one listing – a “listing post” – when it’s A. In Perrysburg.   And B. Special.

So I will write about 1752 Horseshoe Bend.

Because it’s a great house.  3 beds, side-load garage, Corian counters, fenced yard, big basement ready to finish, and as neat and clean as a pin.   $207k tax value.  Today’s price?  $185k.

Oh, the location?

Check out this aerial photo – it’s the house/lot just above the “H” in Horseshoe Bend.   Oh – that’s Perrysburg High School off to the west . . . . so no excuses about it being too cold or wet to walk to school!

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.

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

I am a Fannie Mae direct broker.   And a HUD listing broker. They send me a lot of business.  And I sell a lot of homes for them.   

My team and I also represent a lot of buyers who buy REO listings from Fannie and HUD and Freddie that OTHER brokers have listed.

So I see the velocity and behavior of the local market from both sides.

Some thoughts for you if you want to be a buyer of the “great REO wave”:

1. Know what you want to pay – for a particular house – and no matter what happens or who says what, stick with that price/offer/valuation.

2. Be prepared to be disappointed.   The best houses in REO Land get multiple offers.   Some of my best assets get 3 or 5 or even 7 offers.   One family is happy.   The others are crestfallen.   Be prepared to be disappointed.

3. Know in advance the newest tactic that banks are using.  It’s simply called “highest and best offer”.   You are told there are multiple offers.   You are given a deadline.   You have one chance to put in your offer, your “highest and best” offer.   Why do the banks do this?   It gets them higher sales prices, obviously.   And paradoxically it flushes investors out of the pipleline.

4. Investors beware. Fannie, Freddie, and HUD all actively discriminate against . . . investors.  It’s the only type of legal housing discrimination that I know of.   It’s designed to penalize investors who often just “flip” a house after making cosmetic changes or rent out a nice house and often contribute to a decline in housing values in a specific area.

5.  Beware that some banks are artificially, and on purpose . . . deliberately underpricing some assets. By many thousands of dollars.   That helps the banks often get many thousands of dollars more than their list price.  And that’s why you and your agent (hopefully me and my team!) have done our homework up front.   Because it may be wise and financially smart to spend $5k MORE on a house than list price (if, for example, it was underpriced by $30k as I have just seen . . . ).

The rules are different in REO Land.

But the results and the home you can buy . . . they can be spectacular!

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.

Never before have little things made such a difference if you are selling in Perrysburg.

Don’t think that price is the only dimension in the market today.  It’s the most important dimension, but not the only one.

Several clients that I have just started working with on the sell side really impressed me recently.

They did EVERYTHING to get their home ready.  No stone was left unturned.  No blemish was left unpainted.  Everything that could be fixed, cleaned, regrouted, painted, and spiffed up was.

Houses in this condition do impress the buyer that looks at them.   They sell faster.  They sell for more money.  They raise the bar in the neighborhood to a new, higher level.

If you are going to sell you want to be the house that the buyers remember favorably.

If you show enough homes you can remember the ones that were really, really bad.   “Wear a mask” bad.   You don’t want to be remembered for something bad, but for being exceptional.

Some ideas:

1. Professional carpet cleaning.

2. Grout and tile and showers and baths – make them perfect.

3. Paint.  No blemishes.  No wild colors.

4. Screw everything back in place that the wind/snow/rain has changed.

5. Put all the extra stuff away.  In the garage or basement or storage locker.

6. Lighten and brighten all the rooms.   It works.

7. I am not a big landscape fan – buyers know how easy landscape can be change/fixed.  But some mulch and some flowers from Andersons or Mosers or Black Diamond?  Easy to add.  Cheap to buy.

Just don’t let the kids help without supervision . . .

Has finally arrived.

Here is what it means to me, from a real estate perspective:

1. More houses on the market.  Happens every year.

2. Parades.  You bought a house in the Historic District?  Now you can walk to the parade with a stroller and not worry about parking.

3. Independence Day.  You bought a house by Ft. Meigs.  Now you can have a great party and not fight traffic.  Or you can hope your brother has a party and you can watch from his house.

4. The Farmer’s Market.  Fast becoming a great Perrysburg event every week.  You no longer need a lot big enough to garden.  You can buy someone’s organic produce and not mess with it your self! 

5. Tornado Time.  Remember last year?  Watch the news about Joplin?  You buy a house WITHOUT a basement you might want to have a plan . . . .

6. Heat and Humidity.  We always get some really hot stretches.  Got central air?  Screens for all windows?

7. Water.  Pouring into your basement as the walls collapse.   This does not happen in Spring/Summer.  But now is the time to reattach and check your downspouts.  Don’t do it?  Don’t care?  $25,000 to fix a bad basement in the Perrysburg Clay.

8. And a sad change – want to bike ride?  There are ZERO good trails in Perrysburg.  You have to drive to the Slippery Elm or Wabash Cannonball.  Bummer!

Enjoy the upcoming great weather!