Will 2012 be a Seller's Market?

For the past few years, we've been working in a buyer's market. That is, there were way more listings than buyers out there. That's been tough for a listing agent like me.

But it seems we may be looking at a big change going into next year. Here are a couple factors that point to Cleveland's east side becoming a seller's market:

Fewer foreclosures - Foreclosures should slow down as Freddie Mac and Fannie Mae change their rules and more financially distressed homeowners are able to hold on to their homes. I haven't seen foreclosures being a huge factor in the Chagrin Valley, but they are out there.

Fewer Housing Starts - Builders have been leery of building spec houses and starting new developments. But there is pent up demand for new construction. We estimate that 15% of buyers want a brand new house, and there's definitely a shortage in our area.

Interest Rates - Buyers are going to come to realize that our amazing low interest rates have no where to go but up. Buyers who have been on the fence waiting for rates to go lower may finally buy. That means more buyers out there.

Inventory - Our inventory of houses for sale is so low! In almost every community, the number of listings is down.

It all comes back to your high school economics class....good old supply and demand!

Things to Consider Before Renting Your House

When your house has been on the market awhile and it doesn’t sell, it’s tempting to rent it. After all, it would be nice to have money coming in every month and for the home not to be sitting empty.

But renting is more complicated than you may think, and there are some important things to think about.

Top on my list of worries is how the renters will care for your home Time and time again I hear horror stories of friends who rented their properties only to get them back in terrible condition. Even when you rent to nice families, with good incomes, who seem so great when you meet them. I think it has something to do with pride of ownership…when it’s not their home, they just don’t take care of it the same way.

Other good ideas before renting:
Consult with an eviction attorney – What will you do when your renter doesn’t pay one month, either because they won’t or can’t? You should understand the legal challenges of eviction before deciding to rent.

Interview Property Managers – Being a landlord means getting a call at any hour of the day or night regarding maintenance issues. Are you ready and capable of handling it? It also means finding qualified tenants and collecting the rent. Collection calls aren’t fun. What if your tenant told you that they have enough money to buy food for their kids or pay you rent, but not both?? You might want an experienced property manager on your team to help with these situations.

Create a Realistic Budget – Renting brings some money in, but also creates expenses. When deciding on your rental amount, you need to cover more than just the mortgage payment. You should also include property taxes, maintenance expenses (things like repairing or replacing the roof, appliances etc.) and insurance.

The big question: Chagrin VS Kenston Schools

A question I hear from out-of-town buyers moving to this area is, "Chagrin Falls or Kenston--which has the better schools??"

And when working with local buyers, it seems everyone has a strong opinion...they HAVE to be in Chagrin schools or they insist it's GOT TO BE Kenston.

As a real estate agent, I am not allowed to advise or comments on schools. All I can do is point external & objective resources, let them do their own research and come to their own conclusion.

The Ohio Department of Education recently came out with their Report Card and it's great news for our area...all schools here were rated at least EXCELLENT by the Ohio Department of Education.

Chagrin Falls and Orange were rated Excellent with Distinction, and Kenston and Solon were named Excellent.

I think the really interesting thing is how they scored...Chagrin's index score was 109.2 and Kenston's 107.2! How close is that?!

So my short answer to buyers who ask about schools...We are so fortunate to have so many excellent schools to choose from in our area!

(For more info go to the Ohio Dept of Education website at http://ilrc.ode.state.oh.us/)

CHOMP that Wallpaper

Wallpaper and border is usually the first thing that needs to go when getting ready to sell your house. It seems like a nightmare project, but JUST DO IT! Some sellers are tempted to leave it because it's too much work for them and the next buyers might like it or take it down themselves. Bad idea--in most cases it will be a huge turn off to buyers viewing your home and they will assume it's very expensive to remove. So if they do decide to make an offer--despite your ugly wallpaper--they will low ball you.

So, get busy removing your wallpaper and border. Try this product I just used to remove some decals and border in my daughter's bathroom. It's called CHOMP and it was so effective. I wiped it on the borders and decals and in a few minutes they all just wiped right off. It took no time at all and no hard work or scrubbing. I purchased it at Home Depot but I'm sure it's sold at any home improvement or hardware store.

Hope it works as well for you...happy chomping!

Possibly the Cutest House for Sale in Bainbridge!

Help me spread the word about this terrific home on Old Meadow in Bainbridge. The owners have renovated it top to bottom. The highlight is this awesome Kraftmaid kitchen. Every bath has been redone, it has tons of living space, and is on a beautiful 1.5 acre lot. All this for just $295K! Tell your friends looking for a home in Kenston Schools....

Police Blotter an Entertaining Diversion

I love reading the Chagrin Solon Sun's Police Blotter every week. It's usually entertaining, and sometimes paints a picture of our communities that goes against the stereotype. Or sometimes is spot on!

Here's a great one from this week's paper regarding Chagrin Falls...

"Criminal Mischief - A worker with the Village Service Department reported that there was extensive graffiti on the walls and pavement of the shopping center. "

OMG!!! Are inner-city taggers invading the Falls???

But, no. "But officials soon discovered everything had been done in chalk, including peace signs, and recommendations to 'recycle' and 'thaw out.'" Hilarious!!

Here's another one that shows true criminal behavior here in the Valley...

"It appeared shortly after daybreak that someone climbed the fence overnight at the Chagrin Falls Recreation Center and rearranged some chairs around the pool." Love that this is what's considered criminal behavior here!

So I Didn't Imagine It...

The Plain Dealer reported today that December home sales were up. So I didn't imagine that I was crazy busy late last year! The holidays are typically a VERY quiet time real estate agents. But I found just the opposite this year...I was even showing houses right up until Christmas eve!

The PD said that Northeast Ohio home sales rose 10.6% from November to December. This was for both previously owned homes and new construction.

Thankfully, January seems to be just as busy. The lesson here...if you are thinking of listing your home, NOW is the time. Don't wait until the spring market is in full force and there's twice the competition.