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Teri Lussier

Featured Real Estate: Cooper Lofts #409

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Cooper LoftsUnique. One-0f-a-kind. Eclectic. Urban. If cookie-cutter spaces in the ‘burbs are not for you, you have two options in the city of Dayton- buy a historic home, or buy a condo at Cooper Lofts. And there are loft spaces and there are loft spaces, but this is true loft living and that is very hard to find in Dayton. From the gleaming Oak floors, to the warm muted colors, open floor plan, exposed duct work and structural elements, huge windows and great views, Cooper Lofts #409 is unique even among unique spaces.

The first floor is open space with living room, dining room, and kitchen area. The kitchen is modern and clean, open but still warm and intimate, and has been updated with gleaming black granite counter tops. The counter tops, sink, and cook top are two years old. The east-facing window/wall lets in natural light and from the 4th floor vantage point, you can watch the sunrise or the city lights from the island. Those rich light Oak floors are carried throughout the lower level, blending the entire space together, while the pillars and ceiling detail create specific living areas. A remarkable Cooper Lofts 409(4)space for entertaining guests or clients. Very hard to find in the city of Dayton, this is a true loft bedroom! Open to the first floor, and yet, not exposed, this loft space is where dreams are made. The vaulted ceiling and wall of windows keep this bedroom exciting and fun. Previous owner used this as an office and, like a true city-dweller, used the Murphy bed on the first level for sleeping. Even in this space, you have some flexibility with how you use it. The current owner uses the loft as both bedroom and office, and added original artwork by local Dayton artist Stephanie Williams to make the already eclectic space even more interesting. A large walk-through closet leads to the master bath.

Looking for details? www.CooperLofts409.com with give you a complete photo tour, then call Theresa Lussier, Realty Central, 937.343.1411.

Cooper Lofts 409(1)

Cooper Lofts 409(3)

Cooper Lofts 409(2)

Amber Rose hosts Donation Drive for Ronald McDonald House

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Long time Dayton residents know all about the Amber Rose Restaurant in the Old North Dayton neighborhood, just north of the Great Miami River. Specializing in Eastern European cuisine, which matches the immigrants who first settled in this neighborhood, the Amber Rose is a great Old World atmosphere, and delicious food. Dishes like Turtle Soup, Cabbage Rolls, Schnitzel, and more! They describe the restaurant this way:

The Amber Rose Restaurant and Catering specializes in homemade Eastern European Cusine including German, Lithuanian, Polish, Hungarian, Russian and Italian cuisines. Our bar is made of imported Turkish marble, perfect for having an appetizer and spirits with friends. Our beer and wine lists consist of exemplary, hard-to-find European beverages.  The building is located in the heart of Old North Dayton.  We also specialize in custom catering to fit any of your needs.

Just down the road from the Amber Rose is another place that Daytonians know about- Children’s Medical Center, and of course, the Ronald McDonald House, which gives parents of Children’s patients a place to stay while their kids are being treated at the hospital. What a great service these two provide local parents!

The Amber Rose has just announced that they will be sponsoring a fundraiser through December 22nd for the Dayton Ronald McDonald House Charities! This donation will be given to the families of the critically ill hospitalized children. Every customer that brings in a donated item will receive 5% off of their bill. Each additional item will constitute as an added percentage off- Up to 10%. 1 ITEM=5% OFF, 3 ITEMS=8% off *Only 1 discount per check. Not valid with any other discounts.

They are looking for items like canned vegetables, fruit and soup. Gift cards to Kroger, cereal, granola bars, and paper products, and you can find all the details on the Amber Rose website– what a great way to help a wonderful charity!

Dayton Home Sales Stats for June 2012

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Dayton Home Sales Stats for June 2012 - Click Image to Enlarge

Every month the Dayton Area Board of Realtors (DABR) crunches through the sales data for the previous month and publishes the stats. They compare monthly sales to the year prior. It’s a nice way to gauge the general and overall real estate health of the Greater Dayton area.

These sales are single-family homes and condominiums reported by the Dayton Area Board of Realtors, in areas that could include everything from the Indiana border to Springfield; Celina to Hamilton, so it’s a very broad picture, so as I say with nearly every post, your community and your neighborhood might tell a very different picture- talk to a real estate agent to find the data that will directly affect your home. Commercial buildings or homes sold outside the Multiple Listing Service are not included.

So how did we do in June?

Brisk sales throughout the first six months of this year produced year-to-date across-the-board improvements over 2011. From January through June, 5,412 transactions were completed, compared to 5,014 during the same period in 2011, an increase of nearly 8%.

That’s sales. What about price?

This activity generated over $647.4 million in total sales volume for the first six months, a very strong 15.8% increase over 2011. The average sale price jumped to $119,657 while the median rose to $98,500, increases of 7.3% and 10.6%, respectively, in a year-over- year comparison.

The DABR website has other charts and graphs as well to help you make sense of what is happening in the Greater Dayton Area. Take a look!

Earnest Money: Quick tips and good faith deposits in Dayton

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The Ohio Association of Realtors just produced a video regarding the legal implications of earnest money as it can be one of the most confusing aspects of a real estate transaction, and the video release is timely because I’ve seen a definite shift in seller thinking about earnest money so I thought this would be a good topic to discuss in some general terms. What is “earnest money”, what does it do, and how is it disbursed?

Please note: I’m a Realtor, I am not an attorney and I don’t play one on TV. What is included here is intended as very basic, general real estate information so if you need legal advice, please consult your attorney.

Also note: Real estate is local. If you are reading this from outside the Dayton area, please get specific advice from a local real estate agent.

In Dayton it’s called “Earnest Money Deposit” in other areas it might be called a “Good Faith Deposit” but regardless, the purpose remains the same- to let a seller know that your offer is serious and prevent a buyer from simply walking away from a home because of cold feet or a change of heart without losing something of value. An Earnest Money Deposit (EMD) is an amount of cash that a buyer offers up, to be delivered upon acceptance of an offer. But it’s not given to the seller, it is held in a non-interest bearing escrow account, and is not co-mingled with a broker’s operating funds. Here’s how the EMD is explained in the Dayton Area Board of Realtors (DABR) Purchase Contract:

EARNEST MONEY; DEFAULT. Upon presentation of this offer, Purchaser has delivered to _____ Broker, the sum of $_______ as earnest money, to be (1) deposited in the Broker’s trust account promptly after acceptance of this offer or (2) returned to Purchaser upon request if this offer is not accepted. The earnest money shall be paid to Purchaser or applied on the purchase price at closing. If the closing does not occur because of Seller’s default or because any condition of this Contract is not satisfied or waived, Purchaser shall be entitled to the earnest money. If Purchaser defaults, Seller shall be entitled to the earnest money.

Sellers need to understand that the money is not a deposit for them. It does not go to them at closing, it is not theirs. Buyers need to understand that they can get that money back at closing if the terms of the contract are met. Both parties need to understand that they both have to agree on how the funds are disbursed. More from the DABR Purchase Contract:

The parties acknowledge, however, that the Broker will not make a determination as to which party is entitled to the earnest money. Instead, the Broker shall not release the earnest money from the trust account until one of the following occurs: (1) the transaction closes and the Broker disburses the earnest money to the closing or escrow agent or otherwise disburses money pursuant to the terms of this Contract; (2) the parties provide the Broker with written instructions that both parties have signed that specify how the Broker is to disburse the earnest money; (3) the Broker receives a copy of a final court order that specifies to whom the earnest money is to be awarded; or (4) the funds become unclaimed and the Broker turns them over to the Division of Unclaimed Funds. In the event of a dispute between Seller and Purchaser regarding the disbursement of the earnest money, the Broker is required by Ohio law to maintain such funds in its trust account until the Broker receives (A) written instructions signed by the parties specifying how the earnest money is to be disbursed or (B) a final court order that specifies to whom the earnest money is to be awarded. If within two years from the date the earnest money is deposited in the Broker’s trust account, the parties have not provided the Broker with such signed instructions or written notice that legal action to resolve the dispute has been filed, the Broker shall return the earnest money to Purchaser with no further notice to Seller. Payment or refund of the earnest money shall not prejudice the rights of the Broker(s) or the non-defaulting party in an action for damages or specific performance against the defaulting party.

So, once an offer is accepted, try thinking of the EMD as belonging to both the buyer and the seller and they both have to agree on what happens to that money. As the contract states, if “(1) the transaction closes … the Broker disburses the earnest money to the closing or escrow agent or otherwise disburses money pursuant to the terms of this Contract”. We always defer- we have to do what the contract states, so if the there is a successful closing, the money is disbursed at the closing table, typically to the buyer, or if there are other instructions as to how that is disbursed, then we follow those terms. But what if it doesn’t close? We still follow the contract:

(2) the parties provide the Broker with written instructions that both parties have signed that specify how the Broker is to disburse the earnest money;

There is a specific form that will attach to the contract and gives the broker specific written instructions, agreed upon by both parties. Sometimes the money is just given back to the buyer and everyone moves on, sometimes the two parties split the money and move on, or the seller could end up with the money. It’s all negotiated and agreed-to in writing, or the broker is not allowed to release the funds. But what if the buyer and seller cannot agree to how EMD should be released? Again, we defer to the contract:

(3) the Broker receives a copy of a final court order that specifies to whom the earnest money is to be awarded;

If the parties cannot agree, one of the parties has the right to take the issue to small claims court and a judge decides how it disbursed. But even that doesn’t always happen, so then our contract says:

or (4) the funds become unclaimed and the Broker turns them over to the Division of Unclaimed Funds. In the event of a dispute between Seller and Purchaser regarding the disbursement of the earnest money, the Broker is required by Ohio law to maintain such funds in its trust account until the Broker receives (A) written instructions signed by the parties specifying how the earnest money is to be disbursed or (B) a final court order that specifies to whom the earnest money is to be awarded. If within two years from the date the earnest money is deposited in the Broker’s trust account, the parties have not provided the Broker with such signed instructions or written notice that legal action to resolve the dispute has been filed, the Broker shall return the earnest money to Purchaser with no further notice to Seller. Payment or refund of the earnest money shall not prejudice the rights of the Broker(s) or the non-defaulting party in an action for damages or specific performance against the defaulting party.

The contract is very specific about EMD and it’s imperative that everyone understands how they could be impacted by an earnest money deposit. 

How much money should a buyer put down? Everything is negotiable and EMD is no different. Personally, I think the minimum they can get away with and still let the seller know they are serious is best, as a buyer you certainly don’t want to tie up your money unnecessarily as we just discussed it can be a point of negotiation and possible contention. So what’s typical? Well, foreclosures almost always ask for $1000.00, but sometimes a seller will take as low as $250.00 or $500.00 on lower priced properties. It varies from property to property and transaction to transaction, but figure between 5 and 10%. Also, while it is typical for an EMD to be a personal check, and it is customary for the buyer’s broker to hold the EMD, some sellers will want to have the EMD be a certified check and they will ask for their broker to hold the EMD, but remember, how the EMD is handled is determined by the contract, so neither broker can make an independent decision on how or when to release the earnest money.

While we see signs that the market is improving, we are a long way from the days where a seller would simply release the EMD because they knew another buyer was right around the corner. Earnest money is an increasingly critical negotiating tool, and in 2009 the Dayton Area Board of Realtors Purchase Contract changed to provide the detailed instructions you see above, so don’t be surprised if a seller asks for a large EMD to make sure a buyer is serious, or does not agree to Release of Escrow without a fight. Each transaction and each offer will hold some unique circumstances so please ask  your real estate agent or lawyer as many questions you need to feel comfortable with the earnest money.

Looking for some insider baseball? To get the nitty gritty on some legal issues regarding earnest money, check out the Ohio Association of REALTORS Attorneys Peg Ritenour and Lorie Garland as they talk to REALTORS about how to deal with earnest money accounts with regard to Ohio laws.

Image credits:
Dayton Area Board of Realtors
LuMax Art

Eco-Rehabarama 2012

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If you missed the Eco-Rehabarama in Huber Heights, never fear. I took some great pictures of the homes and want to share them to inspire the Midcentury Modest home owners among us. These homes were a joint effort between CountyCorp’s The Housing Source, and the Home Builders Association of Dayton (HBA) and showcase not only the possibilities for Dayton’s older housing stock but also the creative minds of the builders who were involved in this tour.

Note: The Housing Source continues to renovate and sell homes throughout some of the first-tier suburbs of Dayton and their website is the best source for information about the Neighborhood Stabilization Program and homes that are for sale at any given time. In addition, The Housing Source allows local Realtors the opportunity to host open houses at some of their homes, so check their facebook page for updates. 

Photo credits: T Lussier

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National Open House Weekend 2012

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For at least a few years now, the National Board of REALTORS has held a National Open House Weekend. REALTORS across the country are encouraged to hold their listings open on the same day or weekend, typically during the height of home shopping season. This year, National Open House Weekend is April 28-29, but our local custom in Dayton is to hold Open Houses on Sunday, so for Dayton, today is the day.

Some people love Open Houses, it’s a bit of a hobby for them. Some people would love Open Houses if only they didn’t have REALTORS attached to them. Well, can’t do anything about that. We are there to show off the home and answer questions about the home. Last year in this space I wrote a post called 4 Quick and Dirty Tips for Making the Most of an Open House and that advice still holds up today:

1)Don’t try to avoid the Realtor. We do need a record of who is visiting the home, it’s something we are obligated to do for the sellers.  You wouldn’t want random folks walking in and wondering around your home, would you? No one does, and an Open House doesn’t change that. We know there are a plethora of reasons why people visit Open Houses- we are okay with that, but realize you are a guest and will be expected to sign in with at least a name.

2) About the reasons you are there? Whatever they are, it’s fine. The best thing to do, as always, just be honest about why you are there: You are a neighbor and always wanted to see the home; or you are looking for decorating tips; or you are looking for a home for yourself or a family member- whatever your reason, it’s okay for you to admit it up front. The Realtor will appreciate the honesty, and then she can be helpful. If you are there for decorating tips, the Realtor can find out where items were purchased, what the color the master bedroom walls are painted, and who does the landscaping.

3) If you are working with another REALTOR, tell the hosting REALTOR upfront. Realtors have cooperating agreements with each other, which means that even if you are working with another Realtor, we will be happy to give you details about the property, because ultimately we are there to sell the home. Just remember that hosting Realtors work for the seller, so be careful about what you say- it could be shared with sellers.

4) If you are not currently working with a Realtor, you can use Open Houses to interview them. When an Open House is busy, you may not get the time to talk in private or indepth, but you will certainly get a good indication of whether or not you want to have that Realtor help you with such an important transaction.

Go have fun today at an Open House! Enjoy yourself and do a little dreaming. A complete list of homes in the Dayton area that are participating in National Open House Day, or any given Sunday, can be found via the Dayton Area Board of REALTORS Open House search link.

Real Estate Featured Home: 237 Morton Ave, Dayton Ohio

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How does home feel? It feels like 237 Morton Ave- the graciousness and quality of a bygone era, the amenities and convenience of a modern life, beautifully combined to create a one-of-a-kind space, as unique as you are.  Add the charming, income-producing Victorian cottage, and prepare to fall in love.

Glorious soaring ceilings and rich Eastlake woodwork grace the first floor parlor and dining room, both of which feature an abundance of natural light from the tall windows. In the parlor, the fireplace mantel is white marble- stunning against the red walls, and the ambiance is adjustable with a trey ceiling and recessed lighting in addition to a beautiful chandelier. Wood floors? Of course.

The dining room is large, welcoming, comfortable. Family and friends will love lingering around the table. South facing windows bath this room in sunlight.

What about the kitchen? Open and clean, featuring lots of cabinets, a pantry for storage, and a small computer room that is a sunny wall of windows. A comfortable place to enjoy coffee and the paper. All appliances stay.

Upstairs are two bright and airy bedrooms, both with large windows and natural woodwork, and attic storage.

What is perhaps the pièce de résistance of this beautiful home is the luxurious bathroom. If you long for a bath that is a place of relaxation and indulgence, look no further. This bath was recently gutted and completely redone to extraordinary results. Double sinks with vanities, a huge glass-enclosed shower with modern, clean subway tiles, and what every historic home needs- a clawfoot tub for soaking away the cares of the day. The laundry is tucked away in the bath as well, washer and dryer stay. That stunning tile floor is more than beautiful to look at- it’s heated. Yes, those cold Dayton winters are a pleasure to face with toasty toes, and the exposed brick wall is its own textural work of art. So much to love!

The brick exterior of 237 Morton is equally as charming as the interior. Cozy corners and delightful surprises await you. The wrought iron fence immediately creates a welcoming atmosphere, and the landscape borders are the perfect place to indulge your green thumb. The covered front porch makes a nice place to watch the neighborhood activities, but this home also has another cozy porch in the backyard for more private relaxation. Tucked away from the street, is the patio- professionally installed slate pavers create a place to party and play. There’s enough lawn to have a brilliant green carpet, but it’s small enough that you could get away with using either an eco-friendly electric or a reel push mower.

Let’s look at the Victorian Cottage- 239 Morton Ave. This charming shotgun bungalow style home is another reason why this is such a unique property. This is a fully contained cottage with living room, one bedroom, eat-in kitchen, and a full bath. It has its own tiny yard tucked within the backyard of the main home. The Cottage is well-maintained by a long-term renter, currently on a month-by-month lease at $425.00 per month. If you need an in-law suite, combined generations, an artist’s studio, a guest cottage, or continue as rental income to pay part of the mortgage, the two homes together create flexibility that is hard to find anywhere in Dayton. There is also a two car garage on the property, so you don’t have to utilize street parking if you’d prefer not to.

Exteriors of all three buildings- home, cottage, and garage- have had a fresh coat of paint, making this home a showcase in the neighborhood. In fact, this home has been on several of South Park’s famous neighborhood tours.

2/9/13 Note: Listed for sale at $147,000.

Ready for a tour? Call Theresa Lussier, Realty Central, 937-343-1411.

How to use an FHA 203k renovation loan to Eco-Rehabarama your own Dayton home

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When you head off to the Eco-Rehabarama in May (details here), you might go to find your next home- the homes will be for sale- but seeing as there are 10 homes on the tour and they are expecting a couple hundred guests, obviously not everyone who visits is going to buy one of those homes. Many guests will be looking for inspiration for either their own home, or, information on how to turn a classic brick ranch into a stunning dream home. You will find it all at the Eco-Rehabarama, but today I wanted to share some information that might help you finance not only a home, but the renovations as well.

This can be done through a relatively unknown loan called an FHA 203k loan. It’s basically mortgage and renovation

financing rolled into a single loan and a single closing. I spoke with Mortgage Banker, Jerry Stewart, of Evolve Bank & Trust in Dayton, 937.528.6881, to find out how home buyers in Dayton can benefit from using the FHA 203k renovation loan. Here’s what Jerry said:

There are several things that make these renovation loans so great and often they are the only option for home buyers.

By renovating an existing property you are really choosing location over property specifications and we all know the three rules of real estate, location, location, location. So you can now buy that distressed or obsolete home in that desired location.

Sometimes buyers want to live in a specific community, but the price of a move-in condition home make that area off limits to them. The buyer may not have the cash on hand, or skills to do renovations on a distressed home themselves.
The FHA 203k loan can help with that. This is going to be important factor for older cities like Dayton and the first-tier or inner ring suburbs, which have a tremendous stock of aging homes and distressed neighborhoods. What better way to get those homes updated and the neighborhood values stabilized than by renovating existing housing stock, like the homes you will see at Eco-Rehabarama. The photos used in this article are before-and-afters from the same home, pulled from the Dayton Area Board of Realtors. While the 203k loan wasn’t used to finance these updates, this is an example of the type of work the loan could cover. Jerry explains another way home values are improved through this loan:

The other factor is value. When bank foreclosures or REOs are placed for sale, if they do not meet the minimum home standards that conventional and government loans require, they can only be bought with cash. This severely limits the amount of potential buyers. Lowering the number of buyers in turn lowers the eventual sales price. This gives you a great advantage to come in and buy these homes at a substantial discount and finance the needed updates.

Think about the ramifications for older neighborhoods: this can increase the number of owner occupants and decrease the number of investors, absentee owners, and negligent landlords that can devastate communities. But a buyer’s financial stability is also increased when the renovations are financed through a renovation loan. Jerry explains it like this:

With upgrading the major mechanicals you provide a certain level of certainty for years to come. The majority of home buyers in our area are doing so for the first time. Finding a home is the first part of home ownership but staying in the home is the most difficult part. Why not renovate the major mechanicals at purchase, and make the process that much more enjoyable, not to mention the tax credits.

A number of the short sales and foreclosures we see are being sold in mid-remodel, in other words, the buyers simply ran out of money or their financial situation changed and they are unable to finish needed upgrades or cosmetic improvements to the home. Sadly, it’s back on the market and it’s distressed, and the neighborhood is suffering as well. The FHA 203k loan can help get these homes mechanically sound at the time of purchase so the families do not have to come up with the money for those repairs later.

Ultimately though, for anyone who is looking for a renovation loan, this is a labor of love, with all the benefits of creating the home you’ve always wanted. Jerry talked about the emotional benefits of making a house, a home:

By doing it this way you make it yours. You pick the kitchen, the carpet, the square footage, not the previous owner. In 15 years of originating these loans the majority of projects I’ve done didn’t require renovations but the owners wanted to make it their own at the time of purchase.

So your home doesn’t have to show a need for renovations- it does not have to be distressed, you can simply finance your wish list using this loan as well.

Meanwhile, over the past few years the big box home improvement stores have made it easier for buyers to get the 203k renovations done with a minimum amount of hassle. As an example, you can see Lowe’s REBuildUSA program here for some general information about the process.

This loan is not going to be for everyone. It takes patience, organizational skills, and tenacity, but if you are looking for a way to finance your home and the renovations you’ve dreamed of, talk to your own lender, or Jerry at Evolve, to see if you qualify for the FHA 203k loan.

Huber Heights to host Rehabarama 2012

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Okay, so officially it’s “Eco-Rehabarama”, not just “Rehabarama”, but the concept is the same: Older homes that have been rehabilitated, are open to the public. Rehabaramas and Citiramas have been in Dayton since 1993, when the very first Rehabarama was held in McPherson Town Historic District. What a treat it was to see those historic homes restored and updated. The whole neighborhood was energized, which was an added benefit. It’s true that once one neighbor starts to fix up their home, there is often a ripple effect throughout the neighborhood. It’s not so much keeping-up-with-the-Jones, but more seeing possibilities that we couldn’t see before. Enter Eco-Rehabarama.

For the first time in Rehabarama history, the tour will be held in a neighborhood outside the Dayton city limits. This year Eco-Rehabarama is in Huber Heights. Yes, that’s right, the brick ranch finally gets to strut its stuff. Before you roll your eyes, consider why this style home was chosen. From Home Builders Association of Dayton (HBA) Executive Director, Walt Hibner: “All those years ago, we gave Charles Huber grief. But he had something there that we couldn’t appreciate until 50 years later.”

The Huber brick ranch is a size and scale of home that lends itself to affordable rehabbing. The ranch home means no stairs, and the brick exterior is a low maintenance construction material, these are important issues for today’s home buyer. But as Hibner says, “These are not your father’s Huber Homes.” With renewed interest in Mid-Century Modern style, these classic, but affordable MCM homes fit that bill. Eco-Rehabarama is a builder’s showcase. Seven residential construction professional members of the HBA of Dayton took over the 10 homes that are on this tour. Eco-Rehabarama is a builder’s showcase. Each home was stripped to bare studs and the builders created a unique theme for each home. The focus is on energy efficient upgrades, hence Eco-Rehabarama, but floor plans have been altered, sometimes dramatically, and the upgrades are visually stunning. On this tour, Hibner says, visitors “will be able to see and touch the HGTV finishes.”

Themes for the homes run from “Breathe Easy” an “Allergy Friendly” home, to “Young. Hip. Fresh!” with a modern interior that is a little more edgy, to “Home for Life” with renovated space with an eye for ease of movement, convenient for someone in a wheelchair.

The Eco-Rehabarama Home Builders Association of Dayton, in partnership with CountyCorp’s The Housing Source is presenting Eco-Rehabarama, held in May- dates and times can be found here, and in up-coming posts, I’ll take you inside the homes, discuss what CountyCorp and The Housing Source are and what they do, and talk to the builders about what it takes to rehab a home, and how they created their unique themes.  All homes will be for sale through CountyCorp’s The Housing Source Signature Homes, for occupancy at the conclusion of the show. Meanwhile, if you are looking for inspiration and a sneak peek, take a look at the descriptions for the ten homes, here.

 

Images: CountyCorp The Housing Source.

Home Values Up, Foreclosures Down, and What it Really Means for Dayton Real Estate

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This past week brought Dayton real estate into the national spotlight with some interesting news:

While home prices across the U.S. fell slightly in 2011, the Dayton metro area bucked the trend, posting the largest increase in home values among 50 major metros, according to a leading property valuation firm.

Median home prices rose 11.5 percent in the Dayton area to $72,000 last year, California-based ClearCapital reported Monday.

Local home prices appreciated nearly twice as fast as the next two strongest markets, and Dayton was the only metro to post a double-digit gain in home prices, according to the market report.

Before we break out the champagne and start singing Happy Days are Here Again, allow me to be the wet blanket. First things first, this report takes the entire Greater Dayton area into consideration, and as I say with every post, neighborhoods vary so what happens in Santa Clara is not what is happening in South Park which is not what is happening in Tara Estates or Carriage Trails. Okaythen, back to the news and what this means for us as a region. I think this means we are showing signs of some stabilization. We have likely reached the bottom and can now focus on stabilizing our real estate values as a region, although some neighborhoods are going to continue to be hollowed out with foreclosures, vacancies, and demolition. As I said last week, land banking and planned demolition will become a integral part of Dayton’s future for at least the next few years, but I think we can figure longer. I wish it were not so, but I’ve not seen any other way for cities to aggressively fight the combined problems of shrinking population and deteriorating and aging  housing stock. I also think that our first-tier suburbs like Huber Heights, Kettering, Trotwood, Riverside, should start developing plans to deal with some of these issues as well. Which brings us to our second bit of news:

Compared to 2010, the number of properties with foreclosure filings in Montgomery, Greene, Miami and Preble counties fell by about 31 percent to 6,131 last year, according to a RealtyTrac’s annual market report released today. On a month-to-month basis, the number dropped nearly 45 percent from November to 525 last month, RealtyTrac reported.

In Clark County, the number of properties with foreclosure filings fell 23 percent to 1,001 last year. In Champaign County, the number fell 71 percent to 74 properties. In Warren County, the number fell 18 percent to 1,481 properties in 2011.

By comparison, the number of properties in the state hit with default notices, auctions or bank repossessions declined 27 percent to 79,422 last year.

… But researchers were quick to point out that processing delays stemming from the so-called robosigning scandal, in which some big banks admitted processing foreclosures without verifying documents, stymied foreclosure activity across the country.

In other words, while we had a respite from mass foreclosure filings, we are still dealing with this mess and will be for a few years, even if it’s not at the levels seen in 2009. Again with the wet blanket: It’s an unpopular opinion, I’m aware, however, if you live next to a foreclosed home, it is in your best interest to keep an eye on the property. I realize it’s not your home, the banks might be the bad guys, etc. however, your property values are determined by the neighborhood and a buyer’s perception is affected by the neighboring properties. You do have an interest in how that property is maintained and cared for. It might not be your job, I get that, but it is your business. I digress…

Overall, these two pieces of news would indicate that the Greater Dayton area, which got slammed hard with foreclosures, declining home values, and shrinking population, appears to have hit the bottom, and the next few years should show continued signs of stabilization to the general area, if not the beginnings of recovery in real estate. Right then, cue-up some Gloria Gaynor for you oldtimers, maybe a little Destiny’s Child for the whippersnappers.

 

Photos: Teri Lussier

Dayton real estate 2012: Prognostications, trends, and silver linings.

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2011 brought some changes to the Dayton real estate market. These type of crystal ball posts are sometimes difficult to write because my business might be very different than another real estate agent’s business. Some of us specialize in condos, or foreclosures, or investment properties. There are agents who specialize in lease-to-own, or upscale, or new builds. I’m sharing the things I’ve noticed, but as always, talk to a real estate agent for your specific needs.

A few things to keep in mind if you are buying a home: some markets are being driven by foreclosures or short sales. One of trends that seems to be emerging among foreclosures or cosmetically flipped homes is that are being listed at below market prices which creates a bidding war. In other words, a home hits the market priced lower than other homes and within days there are multiple offers on the property. It’s a good strategy for a seller to get at or above asking price so be prepared if you are looking at foreclosures- you may need to act fast, and might end up paying full price or more to get the home you want. Now this isn’t horrible in and of itself as long as the price supports updates you will be making so don’t panic, but also don’t get sucked into more for a home than its worth. Know what the neighborhood will support.

Short sales are a different beast altogether and while the process for buying and selling short sales has improved over the past year, you should still expect that they could take months to close. However, because short sales account for a large percentage of homes on the market, it’s worth it to plan ahead and take them into consideration. In many communities, distressed properties are driving the market, so if sweat equity doesn’t bother you, this is a good market for you. If you don’t want to do the work yourself, there are a few loan options available for owner occupants who would prefer to finance any repairs or upgrades. Programs like the 203k financing require preparation, organization, and stick-to-it-tiveness on your part, but the repairs have to be made by contractors and professionals. These trends will continue for quite some time in this area as housing stock ages and becomes more distressed.

The other big trend this year is in rentals and seller financing. People need a place to live, and while interest rates have hit record lows and there are lots of homes on the market, if you can’t get a loan, you can’t get a loan. Enter seller financing like land contracts and lease-to-own, and a market for rentals. If you are considering being a landlord, this is a good time to do that, if you are a seller looking for a way to create a niche seller’s market within this broader buyer’s market, this is a remarkable time to do that.

Speaking of trends, I want to point out that a few weeks ago it was reported that National Association of Realtors (NAR) got it wrong:

“All the sales and inventory data that have been reported since January 2007 are being downwardly revised. Sales were weaker than people thought,” NAR spokesman Walter Malony told Reuters. “

If you’ve been paying attention to what is happening in your own neighborhood, this should not be news to you. There are few established neighborhoods in the Greater Dayton area which haven’t taken a hit the last 4 years in particular, but for a number of neighborhoods in Montgomery County, this has been going on for years as those neighborhoods have been bleeding population for decades. It’s supply and demand and I don’t see us picking up in population for awhile. Now, shrinking should no longer be confused with dying, but it is a trend and that’s what we are concerned with for this post. So expect inventory to stay up. Land banking and planned demolition will be part of life in the Miami Valley. Again, this may or may not be doom and gloom, but it is change.

Still, the NAR is the national organization that is tasked with representing its members and they have become one of the most important lobbying groups on K St. When the NAR talks, our elected officials pay attention, but that doesn’t mean you should. If you want to know what is going on in your community, ask a local real estate agent to pull the stats for a particular area, because for us the market talks and in order to serve our clients, we listen to the market, not the NAR.

One more possible trend to be aware of: Because the real estate market has changed, many agents have left the business, some numbers suggest as much as 40-50% and I see this as positive. It’s anecdotal I know, but it seems that those agents who are left are highly professional and some of the best I’ve had the pleasure of working with, and to me, this is good news for everyone.

All the best to the entire DaytonMostMetro.com family- editors, readers, contributors, and here’s to finding more silver linings in 2012!

 

By the numbers: A Dayton real estate market report

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Today we look at some Dayton real estate market stats. Both buyers and sellers need to know what is going on in the market, so let’s see the numbers.

I pulled the numbers on a very specific area- Hills and Dales in Kettering. The Dayton Area Board of Realtors defines this area as generally north of Dorothy Lane, east of S. Dixie Hwy, south of Schantz, and to the west of Hills and Dales Park. I chose this area because it’s got a little bit of everything as far as housing stock goes- vintage, newer, custom-built, affordable, starter homes, move-up homes, upscale homes, it’s all represented here. Plus it’s an area that most people reading this will be at least somewhat familiar with, also, this neighborhood would have been affected by the economic issues Dayton has dealt with over the past 6 years including both GM and NCR pulling out of Dayton so we can see how the real estate market responded.

This is a year over year Market Report for Hills and Dales. I’ve searched for single family homes only, no condos, land, or multi-family homes. We are looking at the averages here- just a big picture snapshot. DOM= Days On Market. I went back to 2006 which is generally considered the peak of the real estate market. One other thing, I only searched for sales from Jan. to Oct. for each year So let’s take a look.

Year # Sold Avg List Price Avg Sale Price % List/Sale Price Avg DOM
2011 YTD 27 $123,296 $118,885 96% 111
2010 41 $111,926 $106,037 94% 95
2009 29 $115,112 $109,359 95% 156
2008 24 $99,877 $97,116 97% 124
2007 37 $132,130 $126,854 96% 107
2006 50 $138,440 $134,051 96% 123

Pretty much what you expected? This Buyer’s Market you keep hearing about has a lot to do with the interest rates on loans, which are at historic lows. Home prices for many areas are coming back, and loans themselves are more difficult to qualify for. Buyers are still paying about 96% of asking price- that’s remained fairly consistent, and all those great deals you might hear about? They often sell within days of being listed and with multiple offers which drive up the price.

If you are selling your home, things are looking up, although whether or not home prices return to 2006 levels is anybody’s guess. But still, a well-prepared and well-priced home will sell and seller financing is still a good way to take advantage of the current market and get a better price than a sale with lender financing.

Finally, I can’t say this often enough- real estate is local. This one small area of Dayton and your neighborhood is going to have unique challenges and opportunities, so get informed before you make a decision about how to make the most of the current real estate market.

Patterson Square: The new kid on the block.

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On the corner of First and Patterson is Dayton’s latest condo development: Patterson Square. Not your father’s townhouse, Patterson Square combines the best of traditional and modern interior designs. As a Realtor, I like seeing new builds or renovations in downtown Dayton. There is a need for it. I understand we have a lot of single family homes looking for owners, but people like variety. And no I don’t work for Charles Simms Development, I’m a HouseNerd who gets her kicks talking about real estate. So let’s take a quick tour.

It’s a (sing it with me) brick, house, and it is kinda mighty mighty if you want to know the truth. The exterior is all brick and like most townhouses, the windows are big. When you only have two sides to work with, you try to grab as much natural light as you can. At the street level is an attached 1 car garage w/ storage at the back, and a gated entry with a bricked courtyard at the front. Sandwiched between the two, is what they are calling a live/work space. Most likely to be used as an office or den, it could double as a guest room, this room is approx 12’2″ x 11′ 8″ with windows that will look out on the courtyard. Those buildings that face south will get some nice natural light in this room. HVAC system is in the garage.

Next level is what Simms calls the “Living Level”, but the rest of us call it the second floor. It’s an open kitchen/ living space with large windows on one side, and patio doors that lead to an 8×6 deck on the other which overlooks the common area of the development. Owners should get some nice views from here. You’ll be able to sit out there and enjoy music festivals at Riverscape. This level has an open floor plan and exposed beam 9′ ceilings, it’s a nice loft-like feel here- very modern. The entire space is 36″ long so you could pack some people in there for entertaining, but separate areas- kitchen, dining, living are nicely designated so it lends itself to more intimate gatherings as well. The powder room on this floor.

The third level is private spaces- two bedrooms and a shared bath. The master bedroom is 13’6″ x 11′ and features trey ceilings- a nice touch. Two separate closets? Yes, please. The second bedroom has its own walk-in closet, and the laundry is on this level. The full bath can be accessed from either the master or the hall. The entire unit is pre-wired for audio on all three levels, and is 1331 sq ft, not too shabby for a townhouse in the downtown residential district.

There are some Green Building features here, of course. You can’t really build these days without incorporating some green features and this development is Energy Star qualified- generally 20-30% more efficient than standard homes.

Overall, it’s another option to the growing residential district in downtown Dayton. Patterson Square will serve a market that is looking for something new, something efficient, close to everything in downtown Dayton, but a more traditional style than the Litehouse Development. These townhouses start at $139,900, and as of the offers of this post 9-18-11, they are offering pre-construction incentives such as closing costs if financed with their preferred lender, 6 months of HOA fees paid, flooring upgrades on Living Level (that is some beautiful flooring, I will say). Note: Prices and incentives are subject to change, please consult your Realtor or Simms Development for details. Each home comes with an in-house 1 year warranty, and a personal walk-thru with Charles Simms the developer, himself.

The Simms website is here, Patterson Square is here, but since it’s a new build there are no photos yet, so go to the Twin Lakes West photos to see a very similar townhouse. The photos included in this post came from the model at Twin Lakes West and while there will be some minor changes to the floor plan to make it optimized for the downtown site, you can see what Patterson Square is going to look like. How do you find out more? Contact Sales Rep Stephanie Dietz at Simms, 937-436-2913; or contact your Realtor who can walk you through the process and act as your professional eyes and ears to any new home purchase.

Can Dayton’s newest mall push the northern suburbs to new Heights?

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Here’s one of the lessons that the current residents of the Rustbelt have learned in the past few decades: Cities are fluid. They change, they morph, they grow and they stagnate, they change, they morph, they grow again and again. It’s kind of the beauty of the pulse of a city- what’s new becomes old and everything old is new again. For the past few years we’ve been watching quite a bit of decay and deconstruction in the Dayton area, but there’s been growth, too.

Austin Landing gets a lot of attention, but north of the river is a residential development called Carriage Trails, and its proposed anchor shopping mall, The Heights, has potential to bring a new interest, money, and energy to the Montgomery/Miami County border. Development in this part of Dayton is a healthy, thing and the timing is good. We’ve watched the demise of the Salem Mall, and retail pull out of downtown- what were once the two most convenient locations for shopping for Dayton north of I-70. So the northern Dayton area could use a bold plan. Today’s Dayton Daily News has a comprehensive look at The Heights, you can read that here.

Contractor meeting at Carriage TrailsI’ve heard mixed opinions from northern residents. With limited northern retail options, some of the comments I’ve heard suggest that finally we don’t have to drive to Beavercreek, Kettering, or Centerville to shop at a mall. I’ve also heard that Huber has seen some tough times recently so why would anyone put in upscale shopping here? Someone expressed the sentiment that we already have bus service so it could fill a void that the Fairfield Commons is unwilling to address.

This mall is likely to attract residents from all over the northern Miami Valley- residents from Brookville or Greenville to the west, Piqua, Troy, Sidney to the north, and Springfield from the east. It’s just off I-70 and 5 minutes east of I-75 so it could be destination for a largely under served area. The real estate side to this is that for homes in the area, this will make them more attractive and bring renewed interest and energy to the area, because the truth is that most people like to live in a somewhat concentrated area, not far from their jobs and retail, and this development will compliment a prime real estate combination- we have variety. The Huber Heights/ Bethel Twp/ Tipp City area has a wide range of older and newer housing stock, and a wide range of home prices, making for a nicely diverse selection for home buyers to choose.

With all the changes Dayton has seen in the last few years, growth is good to see, but this isn’t everyone’s idea of positive growth. I’m curious what you think? Are you looking forward to seeing a new mall in northern Dayton?

What’s the single best reason for buying a home in Dayton OH?

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Let’s say you are thinking of buying a house. You are probably watching the news for real estate market insights, you are listening to your friends tell you about their experiences- good, bad, indifferent. You might be a bit nervous and scared about buying right now and you’ve seen what has happened over the past decade so you are smart to be cautious. It’s difficult for even experienced Realtors to look into their handy-dandy crystal balls these days because we are seeing some unprecedented changes in the real estate market, coupled with unprecedented changes in the Miami Valley. Erring on the side of caution is wise under these circumstances so take a deep breath and understand that following your gut will keep you out of trouble.

But still, you want a home of your own. You want to paint the walls with salmon-colored chalkboard paint, and put down exotic Brazilian hardwood floors. You have kids in 4-H and two horses you are tired of boarding. Or maybe you simply can no longer stand the thought of paying a cheap and stingy landlord for a roof over your head. Congratulations! You just discovered the best reasons for buying a home.

Forget about the real estate boom. For hundreds and hundreds of years, people who were smart and competent and knowledgeable were buying homes primarily for those same reasons. They didn’t buy a home because real estate was a great financial investment, because it wasn’t. They didn’t buy a home because they thought they could make money from selling it in a few short years, because they couldn’t. They bought a home because they wanted a space of their own. A space where they got to call the shots, paint with the colors that made them happy, use the land the way they wanted, not beholden to a landlord, and put down roots in a community that they loved, and if we think about the lessons of the past few years, those just might be the best reasons for buying a home.

In many respects, this is a perfect storm for home buyers: Inventory is up, interest rates are down, prices are down. The difference in the boom years and now is that there is no real indication that prices are going to up any, if at all, at least not for quite awhile, but don’t despair, you do have options. You can buy a home because you want a place of your own. You can buy a home as an investment or rental property, including duplexes and multi-units. And you can buy a home in a part of the country that is experiencing better economic times than Dayton- there is still money to be made somewhere.

I saw an interesting real estate forecast that makes sense to me, if you want to gaze into that crystal ball you can find it here. There are places where you can invest in real estate and still make (some) money. There are real estate markets and niches that are more lucrative than others, but understand that Dayton is a different market with, in my opinion, a long way to go before we see solid recovery.  What that means is for most home buyers in Dayton Ohio, a home represents a place of their own and all the joys that come with that freedom. If you think about it, “”because you want to” might be the best reason of all to buy a home.

Photo: TLussier

Grants for Grads and other mortgage assistance programs for Ohioans

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Congratulations to everyone who met a graduation goal this June! Whether it was high school or some level of college, hard work is always to be commended. What is your next move? Staying in Dayton Ohio, we hope. Buying a home? If so, you might want to take a look at the Grants for Grads program. If you have graduated within the past 18 months, there is a down payment assistance program called Grants for Grads and it’s being offered through the Ohio Housing Finance Agency, aka OHFA (pronounced Oh’-fuh). From the OHFA site:

Recent college graduates can now receive down payment and closing cost assistance and a favorable mortgage interest rate from an OHFA participating lender through the Grants for Grads Program. Eligible borrowers can use the grant to reduce the out-of-pocket expenses associated with buying a home.

If you are an income-eligible first-time homebuyer, graduated from an Ohio high school and have earned an associate, bachelor’s, master’s, doctorate or other postgraduate degree within the last 18 months, you can take advantage of the Grants for Grads Program.

* OHFA will issue a grant in an amount for 2.5% of your home’s purchase price.
* You can use the grant to pay for the down payment, closing costs, or other prepaid expenses incurred prior to closing. Keep in mind that while the grant will help cover some of your up-front costs, you may still be required to contribute some money as well.
* The grant will be issued as a second mortgage with a 0% interest rate with no payment due. The loan is forgivable after five years. However, if you move out of Ohio prior to the five-year mark, you are responsible for paying a portion of the grant back to OHFA as indicated (on their site).

Find out all the details about Grants for Grads, here.

What if you don’t qualify for Grants for Grads? There are several other programs through OHFA that are always worth looking into: First-time Home buyers, Target Areas, Ohio Heroes (for police, firefighters, teachers, healthcare workers, veterans).

Details are available on the OHFA site, or contact a participating lender. And best of luck to all 2011 graduates!

This communication is provided to you for informational purposes only and should not be relied upon by you. Teri Lussier and Exit Realty Central are not mortgage lenders and so you should contact your own mortgage lender directly to learn more about mortgage products and your eligibility for such products.

Photo credits:
Graduate: Andrew Mackenzie
Fire fighters: Brett Gustafson