Greater Cleveland Real Estate Blog

Let's continue converastion started in my previous post

Cleveland Real Estate: You can afford it but can you hold it?

Low prices on houses and condos for sale in Cleveland  make them apparently more affordable for new homeowners. More and more people are looking forward to moving up as today's market support this idea. Let's talk about luxury homes in Solon, OH.  

We have few very smartly designed and very well developed upscale communities in Solon. Three of them have been seriously hit by foreclosures and short sales:

• Thornbury
• Signature of Solon
• Chagrin Highlands.

 That creates incredible opportunities for moving-up buyers. Let's review some details.

• Currently there are nine (9) houses in Chagrin Highlands offered for sale via local MLS.                     

 Median List Price $575,000; Days On Market - 79; Cumulative Days On Market - 213

 •  One property located at 38881 Lochmoor Dr. is Pending upon closing of sale. List price is $395,900.

4 bedrooms, 4 ½ bathrooms. 3,858 sq.ft. Short Sale.

•  Four properties sold in Chagrin Highlands after 04/12/2008  

 Median Sale Price $409,000; Days On Market 73.

Average Sale Price / Average Original Price Ratio =  405,750  / 458,250= 89 %.

•   There are currently two bank owned homes located at Thornbury and Signature of Solon.   

• There were five comparable bank owned properties sold in Thornbury and Signature of Solon after 04/12/2008.  

Median Sale Price $431,000. Low price/sq.ft = $110. High price / sq.ft = 130.

Bank owned homes currently listed and sold in Solon impact the current market value of comparable homes. Median sale price for the houses built in 2003-2006 was $431,000. Average price per square foot was $118.40.

Average sale price per square foot paid by Solon buyers for the newly built houses in comparable communities can be a solid basis for determination of a true market value of the house if you are buying a foreclosed or short sale luxury home in Solon.

Many families of professionals can afford these houses today. However, reasonable people ask themselves and their Real estate agents the questions:

WHY ALL THESE GREAT NEWLY BUILT SOLON HOMES GOT FORECLOSED?

ISN'T IT BECAUSE PEOPLE WHO COULD BUY THEM WERE NOT ACTUALLY ABLE TO HOLD THEM?

It is so important to double check your holding power when bargaining the luxury home in Solon today. Please take in consideration:

1. Real Estate property taxes. Recently built 5,000 square feet house which you can "steal" today for about  $570K may have about $18,000 per year in property taxes.
2. Utility bills. Oversized home means oversized heating and cooling bills. Period.
3. Landscaping and property maintenance cost.

Buy smart, buy responsibly, and buy now. It may be your life-time opportunity. Don't miss it but don't overestimate your holding power.

Few simple rules of investment in Cleveland Real Estate

Are all Foreclosure "Deals" equally great?

Need a good home in Solon?

Want to buy with confidence?

Please call Svetlana 216-548-4663 or e-mail to: Realty@Local-n-Global.com.

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Looks like investors from the whole country and even the whole world have Cleveland and suburbs of Greater Cleveland on their shopping list. I don't blame them. Cleveland is beautiful!

As a Real Estate professional and a resident of Greater Cleveland I am very glad that people invest in Cleveland Real Estate. I am glad even more that people buy houses and condos not for a future profit but for today's living. I am happy that there are buyers with a strong purchasing power and a very good holding power.

The reason I mention a Holding power is simple. Cleveland Real Estate market circa 2009 offers incredible opportunities for the buyers of all levels of income and life styles due to a big inventory of foreclosures and short sales. Buyers should remember however that holding Real Estate means not only ability to make mortgage payments. It also means having a financial power to pay Real Estate taxes, insurance, to make necessary maintenance, repairs, and  to keep up with the neighborhood life style.

Quick example. You can buy today a very decent all brick single family home in Shaker Heights for $35,00 - $55,000. Sounds tempting, doesn't it? Looks like you can easily afford this house if you have any permanent job. You can afford it but CAN YOU HOLD IT?

Shaker Heights has one of the highest property taxes in Cuyahoga County. More likely, the assessed value of the house which you have a chance to buy for under $50,000 is over $150,000 - remember, you've got a great deal! That means that your Real Estate property taxes will be about $5,500 per year. Sounds tough, huh?

Shaker Heights has Point of Sale inspection and very strict escrow rules in case if City inspector identified the violations. Escrow account should be 150% of estimate cost of repairs. Let's say that you are lucky enough to get the house with a very modest list of violations. Even if your contractor, who should be registered with the City od Shaker Heights gives you an estimate for $10,000 you will hold in escrow $15,000 until the job is completed and property reinspected by the City.

Work  with a reliable Real Estate expert who will help you define your buying and holding power, who will guide you through the whole process, who will negotiate strongly on your behalf, who will give you a solid advise on first-time buyers tax credit.

Buy smart, buy responsibly, and buy now. It may be your life-time opportunity. Don't miss it but don't overestimate your holding power.

Few simple rules of investment in Cleveland Real Estate

Are all Foreclosure "Deals" equally great?

Need a good home in Shaker Heights?

Want to buy with confidence?

Please call Svetlana 216-548-4663 or e-mail to: Realty@Local-n-Global.com.