Localism: Stark County, OH

All This Negative Attention to the RE Market

Mon, 01 Dec 2008 02:27:39 -0600

I know I've been guilty of it, I pay too much attention to it. Heck, my last 3 blogs have been about it. It's all this negative blogging and news stories about the real estate market that has us running for the hills. I actually don't look at it the same way many people are looking at it right now. Sure, prices are low, inventory is high, but this just means it's a great time to invest. Any other market, don't you buy when prices are low and choices are plentiful? There is so much media broadcasting that we haven't even seen the bottom of the barrel. How do they know? Hardly anyone was talking depression at the start of 2007. Maybe things will turn around? Maybe the fed is taking the right steps to turn this around as quickly as next year. We simply don't know.

Why do we want real estate prices to go back up? Isn't that part of what got us here in the first place? Sure, anyone that purchased property in the last 15 years or so may have over-paid. I know I did. It's not like we are talking a tremendously huge difference either. 15% in the last 2 years the price has dropped, what if that's the bottom?

I have always been told from my grandfater (also a real estate agent), "There is no investment on Earth, like the Earth itself" and "Land, they're not making any more of it". I have to agree, except they are kind of making more land. Land is a precious commodity. A shelter is a neccessity. This market is going to even out, because it's not only a fundemental of the economy, it's a fundamental of living.

I do have to admit, things are a little scary but only because we don't know what is going to happen. Things are going to change. Homeownership is taking a funny turn. I predict we will be certain about the direction of the market in the next year.

I for one don't want to stand by and let this amazing, once in a lifetime oppurtunity pass me by.

Interest Rates Drop is Smoke and Mirrors

Sun, 30 Nov 2008 23:12:27 -0600

As predicted, the interest rates dropped an unprecedented amount, and by a whole point on Friday, as a result of the Fed agreeing to buy $600,000,000,000.00 of Mortgage-Backed securities and financial institutions deleveraging. However, this fantastic rate isn't what it used to be. Lenders now have tighter restrictions on qualifications of a loan. This is good because the lending institutions are becoming more responsible and lending to those that really can pay it back. This is bad for those with even the slightest blemish in their credit and little no savings.

According to the New York Times, "To qualify for the best rates, borrowers will need to have a credit score of at least 720 and a down payment of at least 10 percent and probably closer to 20 percent. Borrowers seeking to refinance will need to have the same amounts in home equity." With unemployment at record levels since the great depression, there are limited numbers of qualified borrowers. Those looking to refinance must have at least 10% equity in their homes. With dropping real estate values, this is not as easy as it once was.

I have to say, I saw this coming. Part of me is glad about tighter restrictions and part of me is not dancing in the streets. I am glad that lenders are making responsible loans but this will really hurt a lot of people that thought buying a home would be in their reach. Especially disadvantaged are the younger generations of America that are still paying off student loans and haven't been paying on a mortgage for 10 years. Who this is going to help the most is responsible borrowers with a good savings account or decent amount of equity, which I am happy for. Does this mean the subprime market is dead?

I don't know how long these rates will last, but we have to remember what got us here in the first place. Debt. These low rates are tempting for anyone and should be taken advantage of, but if they go away in a week, a month, a year, will there be another 600 billion dollars available to buy them down again?

UPDATE: Forgot to mention FHA financing, which still only requires minimum of 3% down until Jan. 1st and has looser requirements! The only problem I have with FHA is that it is taking significantly longer to close a transaction because it is so popular right now.

L00Kin' OUT MY BACK D00R....

Sun, 30 Nov 2008 11:28:02 -0600

Well, this is the EARLIEST I ever remember having this much snow. This was the scene out from my rear covered patio last week. (Snow has since, once again melted). I hope this is not an indication of the kind of winter we will be having. Of course, everyone with a snow plow, or a pair of skis might tend to disagree with me. Pretty white stuff, isn't it?

IF YOU LIKE TO POST PICTURES. AND/OR BLOG ABOUT THEM, THEN THE NEW GROUP The Tuesday Trip IS FOR YOU! COME OVER AND JOIN US FOR AWHILE!

Mold-Related

Sun, 30 Nov 2008 09:05:41 -0600

This picture is from a ranch style house basement, where the house has been sittting vacant, with no heat or utilities on for over 8 months. The damage seen is not from an external leak from a roof or foundation; it is from condensation cuased by the neglect of beingclosed up with no heat, or ventilation.

This is a typical bank-owned property, that really has no management of the property, other than to make sure it is locked up. I see this type of damage more and more, with all the foreclosures and bank REO'S.

The thing is, I don't think most bank real estate departments have any idea what kind of damage they are causing, or how difficult it is to repair, and all because of simple neglect.

This home has extensive mold in the entire basement, as well as some 1st floor ceilings, and all the window sills. The damage will cost more than $18,000 to repair, and could go much higher, if there is evidence of mold inside the wall cavities, and insulation.

Mold damage, when it gets to this point, is really well beyond the scope that any amateur, or homeowner should try to do on their own. The risks of becoming sick, or hyper-sensitive to mold are greatly increased, and if not handled properly, you can actually cause more damage, by spreading the spores to other areas. Respirators, gloves, protective clothing, and sometimes elaborate containment methods are needed to deal with it, as well as proper disposal tecniques.

Bank owned, or repos may actually be endangering neighbors and neighborhoods with this kind of neglect, since spores become airborne, and can travel several hundred yards.

Buy an investment property for Christmas!

Wed, 26 Nov 2008 11:21:16 -0600

Christina Moock | Cutler Real Estate | 330-936-2519

305 15th St. NE, Canton, OH

Great investment for owner occupant or investor!

3BR/2BA Multi-Family, 2 units

offered at $78,500

Year Built	1961
Sq Footage	1,620
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	2 Car garage
Lot Size	.22 acres
HOA/Maint	$0 per month

DESCRIPTION

Great opportunity on this all brick ranch duplex! City coded until April 2013 & section 8 approved. #307 currently rendted section 8. #307 has 2 BR and a finished rec room in basement. #305 has 1 BR & basement access w/laundry hook ups. Buy as owner occupied and have the other side pay your mortgage!

View more info. at http://www.buyorsellstark.com

see additional photos below

PROPERTY FEATURES

Refrigerator

Stove/Oven

Basement

ADDITIONAL PHOTOS

Seller contact info:

Christina Moock

Cutler Real Estate

330-936-2519

For sale by agent/broker

Equal Opportunity Housing

Posted: Nov 15, 2008, 5:28am PST