If you are not aware of real estate market changes in Toledo, Ohio or the entire country for that matter then you must be living in  a bubble with no outside communication.

Most people I talk to ask me "How is the market" with a pained look on their faces.  And my typical just in passing answer is  "it is a buyers market,, great time to buy not to sell.  Bob and I are working with as many buyers as possible".   

This is the time of year that I typically talk to a lot of people who are thinking of listing their homes for sale.  I am amazed at how many just don't understand how this market is affecting them and the value of their homes.

 Say for example their home should in an average market be worth $200,000.  And the homes in their neighborhood sell for about $200,000.  All is well in Pleasantville.   However, in the last 6 months three homes in Pleasantville sold for $185,000. These individuals were transfered to other cities,or their Adjustable Rate Mortgage were getting ready to "adjust", or for whatever reason they had to move.  Now, most people do not pay cash for their homes, some rare breeds do.  If you are a buyer who needs to apply for a loan, you must then use a bank appraiser.  The bank appraiser typically can now only use comparable sales in Pleasantville going back 6 months.

Opps. Now your home in Pleasantville is only worth $185,000.  Yes but!  Yes but, we just put a new roof on and bought a new furnace and added new windows throughout!!!  Yes that does help your home sell faster.  But those items are really maintenance items.  Things that have to be done eventually to maintain a home. In the bank appraisers eyes your home in Pleasantville may still only be worth $185,000.  Hard to believe I know.

Now  these same people in Pleasantville just recently took out an Equity Line of Credit on their home of $50,000 to pay off some bills and make the improvements mentioned above.  This may mean they owe $220,000 on their lovely home in Pleasantville.  Opps, the market is saying it is worth $185,000.

I can't believe I am saying this but if you don't have to sell, don't.  Years ago any self respecting Realtor would say great, when can we meet to get the paperwork signed?

The only good news is...........  if you take a hit on your existing home,  you may get a good deal on the next home you buy. It may just come out in the wash.   Also, if you are renting and want to buy a home happy day you might find a good deal.

You had better be using a good Realtor because most buyers don't know a good deal if it hit them in the face.  Lets say we look at Pleasantville above.  Case number one: The house you like is listed for $210,000 but you know homes are selling for $185,000, you negotiate and buy for $186,500, good deal.   Case number two; the house you like is on the market a long time and finally lowers to $187,500.  This is a down market you offer $165,000.  The home owners won't even look at your offer.  Your agent should be able to tell you the homeowners history and the comparable sales in the neighborhood.

I know I am over simplifying this situation, and there are 100 different scenarios. Please feel free to call us anytime with questions. 

Nancy Lohman  419-360-4735     Bob Lohman  419-360-4437

Re/Max Preferred Assoicates    wwwHomesAroundToledo.com   website The Lohman Team serves Toledo, Sylvania,OH, Ottawa Hills, OH, Maumee, OH, Holland, OH, Monclova, Perrysburg, OH, Waterville, Whitehouse, Swanton and the greater Toledo area.