Morrow County, Ohio Real Estate

Can I Buy A "Fixer-Upper" In Morrow County?

The question is not "Can I Find?", but rather "Can I Buy?"

There are currently 116 homes on the market in Morrow County and although they are not identified in the Multiple Listing Service as "Distressed" properties, I'd guess that at least 25%-30% of these homes are bank owned.  This means that typically most of these homes have "condition" issues that will present problems during the appraisal inspection process.

Although buying a "fixer-upper" presents it's own set of challenges, it can be done.  Watch the video to find out a little more about the unique challenges of this type of property.

OK, We've got a buyer ... Now What? (Homes for sale in Morrow County)

OK, this is great!  We've got a buyer for our home with a signed contract ... But what happens now?  When do we close?  When do we have to be out of the house?  Can we negotiate time to stay after closing?  Will there be inspections?  When can I start packing?  Is this a sure thing?  Can we go ahead and buy another house now?  

These are just some of the many questions swirling around in the minds of buyers.  Some are asked and others are forgotten before they can be expressed.  There are so many emotions during the first few hours and days after receiving a signed (accepted) Purchase Contract from a buyer.  I won't try to cover all of them now, but ....

I wanted to take just a couple minutes to talk about one part of this sale process; inspections.

Generally, there are two types of inspections, those being; buyer ordered inspections and lender ordered inspections.

Generally, after a Purchase Contract is signed (accepted) by both the buyer and seller then the buyer's agent or buyer will order property inspections.  These inspections are typically for the benefit of the buyer.  The purpose is to have a professional home inspector look for both deferred maintenance items and more serious safety items or potential repairs that would require substantial money, effort, or both to remedy.

This inspection gives the buyer an overall "heads-up" of property condition and then the buyer has the opportunity to ask the seller to remedy the unsatisfactory condition or the buyer can terminate the contract.  This opens the contract back up for negotiation and the buyer can proceed or terminate.  The seller can agree to remedy, but is not required to do so.

After the first home inspection is completed, by this time the lender has most likely collected detailed financial information from the buyer and may well have the buyer "appoved", but now it's time to see if the property qualifies for the loan.  This process is completed by the buyer's lender ordering an appraisal.

Most often, in Morrow County, it seems that today's buyers are either FHA buyers or USRD buyers.  By that I mean that the loans that buyers are getting are backed by FHA (Federal Housing Administration) or USRD (Rural Developement) and propety condition requirements for these loans are very similar.

When the buyer's lender appraiser visits the home, he/she is not only working to determine value of the property based on the sale price of similar properties that have SOLD, but will also look at the property to determine if it meets minimum property condtion requirements.

Factors considered will be; Are the mechanical systems in good working order (heat, plumbing, etc.)  Is the electrical system in good working order and safe for the occupants?  Is there NO peeling paint?  Are there handrails on stairs?  Are there GFCI outlets within 6' of wet locations (kitchen, bath, laundry, etc.) .... and more.

Now, when the results of the appraisal inspection come back, the property condition will affect whether or not the loan and subsequent purchase continues forward.  The buyer's lender is requiring some improvements and generally, in my experience the buyer and seller work together to get the property into the condition that will allow the sale to move forward.

With a buyer who wants to buy, and a seller who wants to sell, there is typically a way to get it done.

I'll dedicate some time in the future to addressing some of the other questions buyers and sellers most often ask.

I think, as professional real estate agents, we've still not done a good enough job educating the buying public about the value we bring to the table as buyer's agents.  Too often I meet new buyers and, whether they say it or not, they're thinking "I only need an agent to unlock the door".

This week, a young man called me about one of my listings in Mount Gilead that he had driven by and after I told him that it was now "In Contract" he explained to me that although they were working with an agent in a nearby town, he wanted to know if I had anything else.  I explained to him that both me and the other agent belonged to the same Multiple Listing Service and that he would be best served to work with his agent to help him find something.

He then shared with me "Well, we only use him to unlock the door - we're driving around finding the houses to look at - He only gets us in the door"

About 30 minutes later, as I was leaving the office heading to a closing, a nice young couple stopped in looking to pick up real estate magazines of homes for sale in Mount Gilead and asking if we had any listings that matched their criteria.  Turns out, it was this same couple I had talked with a few minutes earlier!  

They once again shared with me that they really didn't need an agent other than to "unlock the door", (oh really?)

When I asked them who their lender was, they shared another red flag.  "Oh, her Mom is going to buy the house - she has plenty of money, we're not worried about that"  Well, as agents, we've heard that before.

I was in a hurry to head out the door to my closing so I ran down the hall to my office and came back with; my personal brochure, a copy of "Seven Mistakes Most Buyers Make" and a copy of "88 Things That Can Go Wrong In A Real Estate Transaction"

I hope they took them home to read, but I have a feeling they're laying on the floor of their car.

88 Things that can go wrong in a Real Estate Transaction....

The Buyer/Borrower:

1. Does not tell the truth on the loan application.

2. Submits incorrect information to the lender.

3. Has recent late payments on credit report.

4. Found out about additional debt after loan application.

5. Borrower loses job.

6. Co-borrower loses job.

7. Income verification lower than what was stated on loan application.

8. Overtime income not allowed by underwriter for qualifying.

9. Applicant makes large purchase on credit before closing.

10. Illness, injury, divorce or other financial setback during escrow.

11. Lacks motivation.

12. Gift donor changes mind.

13. Cannot locate divorce decree.

14. Cannot locate petition or discharge of bankruptcy.

15. Cannot locate tax returns.

16. Cannot locate bank statements.

17. Difficulty in obtaining verification of rent.

18. Interest rate increases and borrower no longer qualifies.

19. Loan program changes with higher rates, points and fees.

20. Child support not disclosed on application.

21. Borrower is a foreign national.

22. Bankruptcy within the last 2 years.

23. Mortgage payment is double the previous housing payment.

24. Borrower/co-borrower does not have steady 2-year employment history.

25. Borrower brings in handwritten pay stubs.

26. Borrower switches to job requiring probation period just before closing.

27. Borrower switches to job from salary to 100% commission income.

28. Borrower/co-borrower/seller dies.

29. Family members or friends do not like the home buyer chooses.

30. Buyer is too picky about property in price range they can afford.

31. Buyer feels the house is misrepresented.

32. Veterans DD214 form not available.

33. Buyer has spent money needed for down payment and closing costs and comes up short at closing.

34. Buyer does not properly "paper trail" additional money that comes from gifts, loans, etc.

35. Does not bring cashier’s check to title company for closing costs and down payment.

The Seller:

36. Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.)

37. Cannot find a suitable replacement property.

38. Will not allow appraiser inside home.

39. Will not allow inspectors inside home in a timely manner.

40. Removes property from the premises the buyer believed was included.

41. Is unable to clear up liens against their property – short on cash to close.

42. Did not own 100% of property as previously disclosed. 

43. Thought getting partners signatures were "no problem," but they were.

44. Leaves town without giving anyone Power of Attorney.

45. Delays the projected move-out date.

46. Did not complete the repairs agreed to in contract.

47. Seller’s home goes into foreclosure during escrow.

48. Misrepresents information about home & neighborhood to the buyer.

49. Does not disclose all hidden or unknown defects and they are subsequently discovered.

50. Builder miscalculates completion date of new home.

51. Builder has too many cost overruns.

52. Final inspection on new home does not pass.

53. Seller does not appear for closing and won’t sign papers.

The Realtor(s):

54. Have no client control over buyers or sellers.

55. Delays access to property for inspection and appraisals.

56. Unfamiliar with their client’s financial position – do they have enough equity to sell, etc.

57. Does not get completed paperwork to the lender in time.

58. Inexperienced in this type of property transaction.

59. Takes unexpected time off during transaction and can’t be reached.

60. Jerks around other parties to the transaction – has huge ego.

61. Does not do sufficient homework on their clients or the property and wastes everyone’s time.

The Property:

62. County will not approve septic system or well.

63. Termite report reveals substantial damage and seller is not willing to fix or repair.

64. Home was misrepresented as to size and condition.

65. Home is destroyed prior to closing.

66. Home not structurally sound.

67. Home is uninsurable for homeowners insurance.

68. Property incorrectly zoned.

69. Portion of home sits on neighbors property.

70. Unique home and comparable properties for appraisal difficult to find.

The Escrow/Title Company:

71. Fails to notify lender/agents of unsigned or unreturned documents.

72. Fails to obtain information from beneficiaries, lien holders, insurance companies, or lenders in a timely manner.

73. Lets principals leave town without getting all necessary signatures.

74. Loses or incorrectly prepares paperwork.

75. Does not pass on valuable information quickly enough.

76. Does not coordinate well, so that many items can be done simultaneously.

77. Does not bend the rules on small problems.

78. Does not find liens or any title problems until the last minute.

The Appraiser:

79. Is not local and misunderstands the market.

80. Is too busy to complete the appraisal on schedule.

81. No comparable sales are available.

82. Is not on the lender’s "approved list."

83. Makes important mistakes on appraisal and brings in value too low.

84. Lender requires a second or "review" appraisal.

Inspectors:

85. Pest inspector too busy to schedule inspection when needed.

86. Pest inspector too picky about condition of property, hoping to create work for themselves. 

87. Home inspector not available when needed.

88. Inspection reports alarm buyer and sale is cancelled.

It's my job, as your real estate agent, to make sure these things don't happen.  Because of my experience, having helped hundreds of people buy or sell properties, I'm well aware of the potential pitfalls and as your agent I make sure the appropriate steps are taken to protect your interests and see the transaction through to a successful closing.

Can I buy a foreclosed home in Mount Gilead (Morrow County) OH?

The short answer is YES.  The long answer requires a little more explanation (and question)

How will you be financing this "foreclosed" home?  Will it be your principal residence or are you planning to buy it as an investment property, maybe using it as a rental for a few years?

Do you plan on fixing it up yourself?  Or are you going to hire a general contractor to do all the work?

Do you have the financial ability to risk thousands of dollars?  Or are you trying to find a "great deal" on a home for you and your family and really can't afford to risk any of your hard earned cash?

These are all questions that should be asked and answered - Before you put any money on the table!

Before you buy, do yourself a favor.  Introduce yourself and meet with a local Realtor that can help you through the process.  Having a local Mount Gilead Realtor work with you can save you hundreds or maybe thousands of dollars.  And having an agent represent you WILL NOT COST YOU ANYTHING!

Too many people think that having a Realtor represent them will cost them money.  This is UNTRUE!  Buyer's agents get paid by the seller's agent for bringing a buyer to the table.  We all "co-op" with each other, show each other's listings and we all pay each other to bring a buyer to our listings, whether in Mount Gilead, Cardington, or Marengo. 

Sorry I got off track a little here, my post is to be about buying foreclosed properties, not about the Realtors Code of Cooperation.

So again, YES, you can buy FORECLOSED, PRE-FORECLOSURE, SHORT SALES, DISTRESSED, BANK OWNED, OR HUD OWNED homes.  Each of these types of homes have their own nuances to the buying process.

Work with a local real estate professional to help guide you around the pitfalls and over the rough spots and you could end up with a real gem!

4246 Township Road 21, Marengo, OH Home For Sale (Mini-Farm)

Just what the family wants!  Located at 4246 Township Road 21, just outside of Marengo in southern Morrow County, this property offers over 1836 square feet of living space with 4 bedrooms and 2 full baths along with 1.5 acres of land that boast a great place for the kids and their 4H projects. 

 Also included in this offering are: a 31'x34' pole barn with two sliding doors (one on the front and one on the left side) along with a 12'x31' loft up above.  Attached to the right side of the pole barn is a 16'x27' animal barn with 3 stalls sized for a cow, a horse, and a goat.  The chicken coop (with electricity) is at the far right end of the grazing pasture.  There's also a small play house for the kids located just to the left of the barn.  All buildings featured Hardy Plank (cement board) siding.

 For Dad, there's a great "man cave" at the end of the driveway that measures 26' x 19' and offers two rooms, insulated and dry walled with electric, water, and drain along with professionally designed built-in workbenches with drawers for storage.  On the back side of this building there is a roll-up garage door so Dad can pull the lawn tractor in for service.

Please note that the living room wood burning stove is NOT included in this offering.  The "man cave" stove IS included.  For more info and to take the Virtual Tour, follow this link: Marengo Mini-Farm

Call Herb now at 419-947-4004 for your personal showing.

So you think you want to buy a home and you've been wondering about these HUD Owned homes or you've been hearing talk of "distressed properties" or "pre-foreclosure" homes?  What's the difference?  Which ones can you buy?  Can you get financing?  How do you place a bid?  Are they really a deal?

Get the answers to all your questions ...

FREE Seminar!

HUD Homebuyer & Foreclosure Seminar!

Mt. Gilead Public Library Meeting Room

When? Thursday February 17^th, 2011

Time? 6:00 to 7:00 pm

RE/MAX Genesis is sponsoring this event with speakers including Concord Mortgage and D&J House Doctors. We look forward to seeing you there to learn and gather information on how to purchase a HUD owned home & other distressed properties!

We look forward to seeing you there and helping to uncover the mystery and confusion over the purchase of "distressed" properties.

"I know I'm not really a buyer, but I just wanna see the house!"

So I'm excited to get a call from a buyer interested in looking at one of our listings in Mount Gilead yesterday.  "Carlotta" tells me she's already talked with her bank and she can qualify based on her earnings and credit score.  Wonderful! I say and smile inside with knowing that I've been blessed by the real estate gods with a ready, willing and able buyer.  Oh Happy Day ...

Until we talk a little more ... Oh, you're getting a divorce, eh?  And you have a house to sell you say?  And you refinanced this house 3 years ago, tapped out all the equity for windows, roof and siding?

I tell Carlotta that she's not really a buyer.  The pending divorce will most probably muck up the works and the current home ownership will definately need to be resolved before the bank can approve her.

Carlotta goes on to tell me that she realizes there are a few bumps to her home ownership but "I just wanna see the house so I have an idea of what's out there." 

"But Carlotta, it will most likely be at least 6 months or more before your divorce is complete (depending on how much your husband fights you) and then, because your home mortgage is now upside down due to the present market, we'll need to do a short sale.  This house you want to see is a short sale and lenders will not consider an offer that is contingent on the sale of another property.  So again, you're really not a buyer."

On one hand I could meet Carlotta and show her the house in Mount Gilead, knowing full well she isn't able to buy.  This would allow us to get to know each other a little.  I could spend time face to face with her and give her counsel on what her options might be.  I could talk with her more about short sale.  I could let her bend my ear about her no-good husband and how she'll be so glad when it's all over.  I could then go back to my office and put her into an email drip campaign and sign her up for my new listings blast.  I could stay in touch over the next 6-18 months in hopes that when she is ready, she'll remember I cared and she'll call me to see homes.

But what will I tell the listing agent when she calls for feedback on my showing?  Is it fair to get the sellers excited over a showing that turns out to not be a valid showing? 

What would you do?  (If the house was vacant, I'd level with the listing agent when I set up the showing, but this house is occupied.)

iS THERE RADON IN MOUNT GILEAD?

Radon gas can be a worry for homeowners. This naturally occurring substance has been found in homes throughout the country. It is odorless, colorless and undetectable without sophisticated testing. Radon has been linked to many diseases, and environmental experts caution that it should be tested. Remember that if radon gas is detected, it can usually be removed at a relatively low cost with simple ventilation systems.

If you are concerned about radon in your home, you can have it tested. You can contact your nearest branch of the Environmental Protection Agency for information about how to find a reputable company qualified to perform the tests. If you are buying a new home in an area where radon has been a problem, you might consider including a radon test as part of the structural contingency clause. And if you are planning to sell your home, you can test it for radon before placing it on the market. If there is no problem, your fears will be put to rest, and even if radon is detected, it is neither difficult nor costly to correct.

Here's a link you can follow to learn more about Radon, it's hazards and how you can rid of it if you have in your house.

Mount Gilead Buyer Says "But I Just Wanna See The House!"

This one comes up a lot.  I get a call from a potential buyer and they've called on one of my listings and they want to go see the house.  My standard response is then to ask them; if they're working with anybody to help them find a house, and if they have talked with a lender and are they already preapproved.  Often the answer is "No, we're not working with anyone and Yes, we are preapproved."  What a pleasure it is to meet and work with these folks because they've learned the value of getting that loan approval letter in hand before looking at homes.

Every so often though, I get a response something like; "Well no, we haven't talked with a lender, we just wanna see the house."  I get real nervous when I get this response. 

As professionals, we understand the value of qualifying our prospects, both buyers and sellers.  Are these "lurkers" just nosey neighbors?  Are they burglars wanting to case the joint?  Are they drug addicts just wanting to use the bathroom so they can go through the medicine cabinet?

You see for many (selfish) reasons, I want to meet my potential clients before I just run out and show them a home.  I want all of us to be safe rather than sorry.  (Would you want your Mother or your young daughter running out at the last minute and meeting a total stranger in an empty house?)

But this is only 50% of the rationale.  It's really imperitive for the buyer's benefit that they meet with the agent prior to visiting the first home.  The buyer/agent relationship is going to last for some time, through the viewing and buying process and then hopefully for years to come.  By meeting and finding out about each other, they can begin to develop a relationship of mutual respect for each other.

The Realtor can: explain how they run their business (hours and days they work, use of email and v/mail for communications, etc.  The agent can go through the entire home buying process, explaining financing options and benefits, talk about the home inspection process along with the repair remedy process.  We can talk about multiple offers and how we'll handle that should it come up.

They buyer can; verbalize what they want in a home and why that's important to them, they can have the opportunity to see and understand the MLS property reports that their agent will send them, they can go through a sample Settlement Statement so that they can understand what their transaction costs might really be and when they'll be expected to have these monies, (earnest money, inspection fees, etc.)

For me this whole process, what I call the "Buyer Interview" typically lasts about an hour and it's pretty straightforward and natural for me.  But for the buyer it's a new experience that I think allows them to leave the appointment with more knowledge.  And with more knowledge comes less anxiety and increased confidence in the decisions that they are about to make.

If you've been thinking about buying a home, call Herb now at 419-947-4004 to set up your own "Buyer Interview". 

To see what's available in Morrow County, visit www.herbsells.com

Mount Gilead Home Buyers Ask About HUD Homes.  In this current real estate market there are investment opportunities abundant! 

One of those opportunities are the abundance of HUD owned homes on the market.  These are homes that the lender has "bought back" at the sheriff sale and because the loan was an FHA (HUD) insured loan, HUD pays the lender the value of the "insurance" and HUD becomes the legal owner.  HUD then lists these properties with local Realtors to get the maximum exposure possible and move toward a quick sale.  "Quick Sale" are the operative words. 

Buyers can really get a good deal but they must be "READY, WILLING, and ABLE" to move forward with the purchase.  After viewing the property with their real estate agent, buyers must be pre-approved with a lender and they must be able to put up between $500 and $1000 in earnest money should they be the successful bidder.

HUD places all their properties on a web site and buyers work with real estate agents to submit their bid electronically.  Once notice comes that you are the winning bidder, then a full written bid package must be forwarded to HUD within 24 hours.

Here in Morrow County, my office is the Listing Broker for HUD owned homes.  We are also the Listing Broker for HUD homes in Marion, Crawford, and Wyandotte Counties.  To see what HUD owned homes are currently available in any of our service areas, go to www.nhmsi.com and click on "Ohio" at the bottom of the page.  From there you can search by County, City, or Zip code.

For more information and help with the home buying process, give me a call at 419-947-4004 or email to herb@herbsells.com