Overpriced Housing Stock

HZG looks over at least 15 homes that are emailed per day. This equates to 5,475 homes per year. I'm lucky to find 10 good deals. This equates to less than 1%. The real estate industry is very cyclical. What I believe we are going through now is the inflated pricing bubble burst.

The foreclosure rate in Ohio is quite large, and the market is flooded with bank owned homes. These homes are being listed for sale and may I say, waaaaayyyyyy overpriced. Why is this? Are the Realtors working for the banks off their rocker? No - the banks have mortgaged the properties above their value. This is a large issue with predatory lending - from unscrupulous Real Estate Agents (yes, there are some out there - the majority of agents are good) to fraudulent appraisers. I've actually heard an appraiser ask "How much do you need?" Unfortunately, all of these homes hit the market and the banks carry them for months on end - until they are reduced to the point of a bank loss (however the bleeding stops).

If you are an investor, don't let these homes set your market. They will eventually come down - or be purchased high and end up as a foreclosure again. I've known of one home that has had 3 foreclosures on it in a 2-year span.

Know your market. Know the difference between a good street and a bad street. One block can make a $50,000 swing in value. There are quite a few people that say they "flip" houses. These people either are one and out - or stay in business providing poor quality homes.