Perrysburg Blog

Since I posted about “jobs, jobs, jobs” being the determinate factor for the hoped for future recovery of real estate values and velocity in Perrysburg some have asked me for a solution.

“Well, what would you do!?” . . . .

First, I would do anything I can to stay out of politics, out of the academy, and out of other peoples business.

But, having just gone through the “college application game” with one of our children, my formerly little boy Matthew, who has now been accepted into UM College of Engineering, Rensselaer, Carnegie Mellon, and Rose-Hulman College . . . I have had some eye opening experiences about the state of the modern US university system.

And what it “takes” to get into a good university to set yourself up to get a good internship to set yourself up to get a great job in 4 or 5 years.

My thoughts?

Jobs will come back when local and national leaders stop terrorizing business.  And when they erect some barriers to predatory trade from overseas slave labor and environmental terror labor.

And . . . when our current generation of children learn that it is not a big, happy “we are the world” stage that they are competing on.

I strongly recommend that you invest six minutes and watch this clip about “Two Million Minutes”.

I despair when I compare the current state of primary and secondary education to what happened in and around Toledo just 40 or so years ago.

I am depressed when I compare the teenage bedrooms of houses that I am selling for first generation immigrant families from countries like India and China and Vietnam with the typical bedroom accoutrements of the typical American teenager.

Games.  Computer games.  Video games.  Sports gone wild.

All found in “American” teens lives.

The teenagers from China?  India?  Pakistan?  Japan?

You have got to be kidding.

They and their parents are focused like a laser on the educational excellence and dedication needed to get into the best college and get the best credential to get the best job and the best income to provide the best for their families.

The typical “American” boy or girl is busy getting piercings, tattoos, and shopping after playing sports and going to Florida for Spring Break.

We want jobs to come back?  In Northwest Ohio?

We better get smarter kids.

Or learn to speak Mandarin.

Perrysburg House - Seen By Your Appraiser

The last time that I had a BIG problem with appraisals was many, many years ago with a condo project.

And I was trying to “step up” the value by using each new sale to get to a higher price – where the properties belonged – constrained by the paucity of comparable sales and valid appraisals.   As each unit closed for just a little bit higher, we were able to move the value of the remaining condos up.

Well, things have changed.

And that is NOT what is happening now.

Values have been declining – rapidly.  And now, finally, appraisers, bank CEO’s, the drones at the Fed, and our dear Federal Government have awakened from their long boom time slumber.

To demand that new rules and regulations be immediately enforced.

On loosey-goosey lenders?

On criminal mortgage brokers?

On zero interest rate issuing Fed Governors?

No.

On appraisers.

Somehow, New York Attorney General Andrew Cuomo has bludgeoned the ENTIRE REAL ESTATE FINANCE industry into following new rules.

And now the appraisal tsunami is approaching.   The water has receded from shore and people are running onto the now dry sand to look at the fish flopping.

But disaster is approaching.  New rules.  New regulations.  Properties will be “tagged” with non-appeal-able appraisals for 6 months.  Appraisers will be selected at random.

“Call on line 5!  Mr. Billy Hayseed from Podunk County gets to come to the big city to appraise a house for the first time and he needs directions to get to Perrysburg.”  I kid you not.

Deals are just now starting to bust and burst.

This is not just my little old opinion.   Read THIS.

“Complaints about lowballed appraisals — from builders, real estate agents, consumers and mortgage companies — have erupted since May 1, when government-backed Fannie Mae and Freddie Mac put their new appraisal rules into effect nationwide. Critics charge that the new system fosters the use of appraisers willing to work for low fees — sometimes 50 percent below previous standards — and who are willing to conduct home appraisals far outside their typical areas of activity”

The carnage is just beginning.

When I figure out what to do to minimize it .  . . I will get back to you.

Toledo double taxing its’ citizens.

Bowling Green sending us a new corporate HQ.

Toledo laying off their police force.

All of these things tend to increase residential housing demand and values in our little town of Perrysburg.

Now I just learned that in one years time – which if you hadn’t noticed seems to arrive very much faster today than it did years ago – in April of 2010 the rules re. lead based paint are going to change.

Currently any Realtor selling any home built before 1978 has to provide a Lead Based Paint Disclosure to the buyer.   This is a trivial thing – for not once have I ever met a seller that had known that he had lead based paint in their house.  No one tests – so no one knows.

So the disclosure has what value?

Zero.

Nada.

None.

Year after year Realtors have been giving disclosures that say nothing to people who know nothing so that people can not read them but sign them anyway.

All at the behest of the Federal government.  (And you are worried about them running GM?)

But that is ALL going to change.

Starting on 4/22/2010 ALL regular consumers and normal Joes who buy investment property – duplexes, triplexes, 4-plexes, and even single family houses – for use as rental properties have to abide by the rules that giant “Market Rate” owners of thousands of properties have to abide by.

Such as:

-Testing each and every unit ($500+)

-Building and keeping and supply an audit-proof paper trail on all work done in each rental unit.  Fine for bad paperwork?  Up to $33,000!!!!

-Containing ANY work area in ANY pre-1978 rental unit just like it is an asbestos contamination zone.

-Only using  power tools with HEPA attachments in such units.

-Seeing that ALL personal that do ANY work in such units are trained and certified.

Painting more than 6 square feet of a pre-1978 built rental property?  You are most likely going to have to hire a professional  and PAY BIG MONEY.  Or else test and prove you have no lead in your unit.

How in the world does this help Perrysburg?

Think about it . . . the NEWER suburbs with NEWER rental properties are EXEMPT from this madness.

If you have a post 1978 rental property you can just smile at this insanity.  If you want to sell it, and I am your listing agent, we will make sure to point out in our marketing that it is LEAD FREE and EXEMPT from the new law.   This will, in my opinion, have a huge impact on values and investment property demand.  Most of Perrysburgs RENTAL units are post-1978.

I could go on . . . trainers need to be EPA certified, firms need to be certified, if a child comes into contact with dust from a building as they walk on the sidewalk . . . you cannot imagine what this is going to cost.

But not to the majority of Perrysburg rental units.

Duplexes “in the Boundary’s” are hit.

Some units in Southwood Park . . . maybe.

Three Meadows  – safe.

Most of the Township – safe.

The City of Toledo – in 10 months you won’t want to own so much as a stick of wood in that town if you are a property investor.

Not unless you are either a lawyer or a commercial painting contractor.