Getting It Sold

Wow. Thanks for your response to the cute little house on Wrenford. I received 15 written offers in the span of just 48 hours. Top bidder? $36,000 in cash, quick close and no inspections. Usually I wouldn't encourage a buyer to not have a house inspected, but in this case, the seller was so interested in selling, and there were SO many offers that it made sense to just cut out anyone who asked for them.

Now here's the interesting part of the story: I got a phone call yesterday from a slightly irritated neighbor who was angry at ME for pricing the house that way. "The neighbors are all frustrated because you pricing the house that way brings all our property values down." Aha. As if I dictated the market! (Wish that I could).

Here's the thing: with the death of a parent comes the realization that all you have left is some memories, a bit of stuff, and a HOUSE. What are you going to do with a house when you live across the country, around the world, or even next door? SELL IT. Who sets the price? The market sets the price. We could have priced the house at $1.00, and it still would have sold for $36,000. We could have set the price at $50,000 and it still would have sold for $36,000. We could have set the price for $75,000 and NO ONE WOULD HAVE LOOKED AT IT! Instead, the seller got the house sold, no longer has to pay the insurance, taxes etc., and one very happy homebuyer now holds title to a cute little house on Wrenford Road.

Cutest Little House on Wrenford

I gotta show you the cutest little house of all on Wrenford in South Euclid. Really, isn't this the best? All brick, solid as a rock. 3 bedrooms, 1 full bath. Eat in kitchen, finished basement. Yes, and it can be yours for only $25,000! What's the catch? NO CATCH.

People often ask me why a given house is so cheap. In this case, the house is part of an estate. The owner passed away a month ago, give or take a few days. Her daughter, executrix, (a fancy way of saying that she's handling the estate) understands that she'd rather have her mom than any amount of money out of the house. Given that she can't (have her mom, that is), she's asking a price that will just prompt a sale. No reason to hang on to it, no reason to dilly dally around. I applaud that approach.

We'll Take What We Can Get

We'll take what we can get, but we have our first sign of spring in Cleveland! These are the first bulbs--hyacinth? daffodils? Hard to tell yet, but they're here, and here to stay. I had a nice referral today (thank you R. Hefter of Hebrew Academy of Cleveland). The potential Clevelander asked first and foremost about the weather. I told her not to move here because of the weather, but rather in spite of it. Cleveland may have the worst climate I have ever lived in, but has the warmest heart. The people here, the sense of community, the way you can belong all add up to fabulous value. Add in the fact that our housing is cheaper than many places across the country, and our tuition and costs of that sort are less as well, and there you have it.I have always thought that the first sign of spring in Cleveland is the vans of Amish day-workers coming to build in town. I expect we'll see that sign of spring soon, but our first and foremost sign was actually found in nature--enjoy!

Buying a Foreclosure Part 2

READY? What does "ready" really mean? Got your socks on? Shoes tied? That's ready to go outside. Done your homework? Backpack set? That's ready to go to school. Being ready to buy a bank owned home is more like steeling yourself for a series of events that are going to take place, no matter who you are and what you are offering.

Before we get to that though, you need a pre-approval letter from a lender well before you place your offer. In fact, you need your pre-approval letter before you go house hunting. You need your pre-approval letter even before you step in the FIRST house! Why go looking at something that you can't afford to buy? It doesn't make sense to use your time that way. Better to spend a few minutes on the phone with a lender, sorting out whether or not you can buy, and if you can, how much you can spend. Having that letter is the first and really most important step to "ready."

Wanna Tango? or Tales of Buying a Foreclosure Part 1

Considering buying a foreclosure to live in? Are you the type who can't wait to get your hands around that hammer? Or are you hoping to have someone else do the work for you? Either way, taking on a foreclosed property is not for the faint at heart. I'll post a series of steps/articles/blog posts about the process, and you'll be able to see if buying a foreclosure is something you want to tackle.

The basic idea is this: why should you pay full price for someone else's updates, when you can get a half decent house for a fraction of the cost? Good question. Just go in to the process knowing that it's not for the faint at heart. The hardest part of buying a foreclosure, believe it or not, might be finding the right one.

Properties that have languished on the market for a long time often have major defects that would be cost prohibitive to repair. On the other hand, some properties with longer market times are simply not good investments for people trying to make money, but would be fine to live in. So step one, finding the house. It's going to take seeing a lot of dogs to find a place you actually want to live in. The houses are cold, very cold, and most often pretty dirty. They are dark because usually electricity is turned off, and the water is off, so the toilets and sinks look gross. Be prepared to do your leg work, and really hunt for a house that you want.

When you find the one you want, be ready! You will have to place your offer nearly immediately. I can tell you many tales (one that happened two weeks ago) of showing a client a house on a Wednesday, writing the offer Thursday night, and by Friday morning when I checked with the listing agent, the house had already been sold. Stay tuned for part two, "Being Ready."

Happy Birthday Abie Baby

Happy Abe Lincoln's birthday. Take a minute to reflect on the man who changed the world in many ways. One direct way that influences our industry is the beginning of fair housing laws. Remember that in buying a home, you may live absolutely anywhere you choose (with a small caveat about senior housing). And very importantly, remember that as a seller, you must sell your house to anyone who can afford to buy it. None of the, "what type of people are these" comments. Go forth and sell!

Live from University Heights

It's hard not to get trapped in your own little world. In this niche market, a starter home is in the $150-170,000 range, and has 3 bedrooms, 1.5 baths. Moving up will cost you in the $200-250,000 range, and then there's going way up, which you can definitely do in Beachwood. Today though, I was contacted by an investor who is looking at places that cost $1500. Yes, you read that number right. As long as you're willing to live in East Cleveland, you can buy a house for not much more than a cash advance on your credit card. At 1621 Pontiac, you can get your feet wet in the real estate marke-- you're near a hospital (Huron Hospital), you're near a park (Forrest Hills), you're steps from the train tracks, and oddly enough, you're really only a mile or so from the tony suburb of Bratenahl. Wierd.