Tale of the Madisons (Madisonville and Madison Place)

We all know the Madisonville area from the terrible riots that occurred several years ago. But that history is long gone and Madisonville is quickly becoming one of the strongest neighborhoods poised to take off in the next several years!

Madisonville is tucked right in between Mariemont, Oakley, and the tip of Hyde Park. I can't think of a neighborhood with better neighbors! Outside of it's close proximity to these highly desired communities, the architecture is very similar to the homes found in Hyde Park, Mt. Lookout and Oakley. So once rehabbers run out of inventory in Oakley, they'll strongly start targeting the Madisonville area.

The area most likely to see the quickest growth will be the South East portion of Madisonville. All of these homes are within a 1/2 mile walk to Mariemont Square (which is absolutely incredible). Several of the homes are already well maintained but you can find distressed properties in the area ranging from $20,000 - $80,000. This affordability will draw in the young professionals who will help to shape and revitalize a once unpopular neighborhood.

Lastly, there is some strong development occuring on Red Bank Road, the western border of Madisonville. A new Super Walmart is being built, the Oakley Drive-In has been converted to a luxury Dog Spa and Medical Office Space, and Miller Valentine will be developing the area where the old Nu Tone plant used to operate (http://cincinnati.bizjournals.com/cincinnati/stories/2007/06/18/daily42.html?from_msn_money=1).

Just East of Plainville Road in Madisonville is an area called Madison Place that has already seen a lot of investor activity and above average growth. This area is within easy walking distance of Mariemont Square and the homes are primarily simple starter homes. Madison Place is known already as the place to buy for Mariemont Perks without the Mariemont Price.

Both neighborhoods are worth checking out for Investors or Owner Occupied Buyers. Feel free to contact me for any additional information regarding these neighborhoods as I'm excited to see them take off!

New Development Plan for a 36 Acre Parcel near Cincinnati Airport!

After landing two of Northern Kentucky's largest development projects in 2007, Al Neyer Inc. is expanding its Riverview Business Park in Hebron by adding 35 acres to the 101-acre park it opened in 1998.

The downtown-based real estate developer paid $320,000 for a former horse farm adjacent to its hilltop property northeast of the Cincinnati/Northern Kentucky International Airport, a deal that roughly doubles the 36 acres still available in the park. By incorporating design elements that evoke a residential feel, including a decorative stone wall at the entrance and a one-acre lake, Neyer has attracted a cluster of foreign-owned companies that made Riverview Business Park their U.S. headquarters.

"It was designed as an upscale business park," said David Neyer, president and CEO of the family-owned Al Neyer Inc. "The people we were trying to get were those companies that would favor higher-end amenities."

New to the neighborhood in 2007 were Psion Teklogix Corp., a Canadian company that sells mobile computing systems, and Mauer USA, a German firm that specializes in plastic injection molding. Three of the seven companies that located in the Riverview park were German-owned, while a British firm that moved to the park in 2000 was later replaced by trade-show display company Opera Portables Inc.

"It's developed into a nice, small niche business park," said Dan Tobergte, president and CEO of Northern Kentucky Tri-ED, the economic development arm for Boone, Kenton and Campbell counties. "Its location is very accessible. Its price point is reasonable, in the $90,000 an acre range. It's a very natural setting, preserving as many trees as possible."
Psion Teklogix and Mauer were among Tri-ED's 20 largest expansion projects in 2007. Psion's 60,000-square-foot facility represented a roughly $6 million investment and holds about 150 employees in sales, accounting and technical support. The company makes scanning devices and RFID equipment, which are used to track packages and inventory.

"It has quite a different look and feel than most industrial parks," said Tony Condi, director of marketing for Psion Teklogix. "All the buildings back here are very eye-catching."

See the Full Article at: http://cincinnati.bizjournals.com/cincinnati/stories/2008/04/07/focus1.html?f=et177&b=1207540800^1614502&ana=e_vert

FINALLY - The Banks Project is Underway

It took 11 gold-painted shovels, two boxes of gold-colored hard hats, dozens of dignitaries, fireworks, speeches and a lot of dirt, but the physical birth of the Banks riverfront development finally occurred Wednesday.

The shovels hit the earth at 4:40 p.m. for an event nine years in the making - the ceremonial groundbreaking for a project that many thought would never happen.

"Looking out upon you and this gorgeous sky and these wonderful surroundings, I hope you will forgive me for reverting to one of my former professions," said Gov. Ted Strickland, a former minister. "This is the day which the Lord has made, let us rejoice and be glad in it. You can feel the energy in this place!"

See the full story here: http://news.enquirer.com/apps/pbcs.dll/article?AID=/20080403/NEWS01/804030316/1077/COL02

Some Areas in Cincinnati are unaffected by Slow Market...

Business Courier of Cincinnati - by Laura Baverman Staff Reporter

Mark Bowen Courier

Cynthia Dammel, an agent with Robinson Realtors, said the downtown market has been hurt because homes have not been selling well in the suburbs.

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Homeowners anxious to unload their Indian Hill estate or downtown penthouse condo largely have two options these days - discount the price or wait.

On a list of 42 Greater Cincinnati and Northern Kentucky neighborhoods, these two communities ranked highest for monthly absorption rate. That's the number of months it would take to sell all of the existing inventory in a community, based on the average of 12 months worth of sales there.

A "healthy" national absorption rate? About six months, according to the National Association of Realtors.

With 19 and 27 months of inventory, sellers in Indian Hill and downtown must either be aggressive on price or willing to wait for the housing market to turn around, said local Realtors.

Compiled by the Greater Cincinnati and Northern Kentucky Multiple Listing Services, the list gives a snapshot of the local market.

Mount Lookout, for example, holds seven months of inventory while its neighbor Columbia Tusculum averages 13 months.

The Cincinnati communities of Oakley and Pleasant Ridge held the lowest monthly inventories on the list, at just more than five months.

These numbers are likely higher than past years, although the boards don't track historical absorption data. Local home sales hit a record of 33,499 in 2005 but have since declined to 28,185 in 2007.

Realtors point to several reasons for the differences in inventory. It could be price point or quality of homes in a particular neighborhood. Communities attractive to first-time home buyers, for instance, are sitting prettier than move-up communities. And in some areas, the sellers may be more realistic on price.

"When it's not a competitive market, the supply keeps building up," said Lee Robinson, owner of Robinson Realtors in Hyde Park. "The prices in some communities have not adjusted sufficiently to meet demand."

It's a buyers market

The National Association of Realtors sets a benchmark for absorption rate - about six months worth of inventory equals a balanced market. Locally, an absorption rate of 4.5 months has traditionally signaled the balance, said Karen Schlosser, president of the Cincinnati Area Board of Realtors and sales manager at Re/Max Unlimited.

If the number of months of inventory dips below that figure, it's a seller's market. If above, it's a buyer's, she said.

Schlosser uses absorption rate to determine prices for the homes she's selling.

"If I have a house to sell in Indian Hill, and I want to sell more quickly, I have to be a whole lot sharper in price and condition," she said.

Two years ago, what drove up the value and interest in older homes in luxury markets like Indian Hill and Mount Adams was the demand for new ones. With a glut of both new and old homes on the market, and a lower number of available buyers compared to the general market, supply now outweighs demand.

"The run-up was just ridiculous, so Indian Hill is getting killed," said Peter Chabris, an agent with Keller Williams Realty.

"The luster momentarily is off," Robinson said.

It's a different story downtown. Because it has so many units under construction and is generally geared toward the downsizing buyer, it has been hurt by the poor suburban housing markets, said Robinson Realtors agent Cynthia Dammel.

Yet sale prices have not adjusted in either case.

Sellers are often still running up the list price to leave room for negotiation, a frustrating trend for Schlosser.

"It is not a market to be fishing for a price," she said. She's not factoring 2006 or 2007 appreciation into most of her list prices, especially in luxury markets.

"There are homes in this market selling with multiple offers at full price because those properties are priced appropriately," she said.

lbaverman@bizjournals.com (513) 337-9431

US Playing Cards May Leave it's Norwood Site

Thought this article was interesting as it may open up a huge 21-Acre plot of land in the Eastern Part of Norwood, large enough to

Below is the first portion of the article, go to http://cincinnati.bizjournals.com/cincinnati/stories/2008/03/24/story1.html?b=1206331200^1608456 for the full article:

Friday, March 21, 2008
U.S. Playing Card may leave Norwood

Business Courier of Cincinnati - by Jon Newberry Staff Reporter

"United States Playing Card Co. is exploring relocation options and could make a decision to move out of its 108-year-old plant and headquarters in Norwood by June.

The company has more than 600 employees overall, including more than 400 in Norwood, and the 600,000-square-foot compound is its only U.S. manufacturing site.

Phil Dolci, president of the 114-year-old business, said it's looking at unspecified locations in Ohio, Kentucky and Indiana and has been in contact with state and county economic development officials in all of those places. No decision has been made yet, and at this point "everything is a possibility," including remaining in Norwood, he told the Business Courier.
"Ideally we'll make a decision in the second quarter," Dolci said.

Asked if any of the locations under consideration are outside the Cincinnati metro area, Dolci said "Indiana would be" but declined to be more specific about any of the possible relocation sites.
The timing of the actual move, if that's the decision, would depend on whether U.S. Playing Card relocates to an existing facility or to a new building, along with any site preparations or building changes related to the chosen location. Dolci said the consideration of alternative locations was prompted by a desire to improve on its current manufacturing facilities.

"Manufacturing on four different floors in six different buildings isn't the paragon of efficiency," he said. If the company moves, nothing has been determined about the future of its 21-acre complex on Beech Street at Park Avenue, where the ornate entrance is topped by a four-story, neo-Romanesque bell tower that was added to the brick building in 1926.

"Everything is TBD," Dolci said.

Norwood doing what it can
Real estate industry sources said CB Richard Ellis is representing the company in its search efforts. Ken Murawski, managing director of the Cincinnati office, couldn't be reached for comment.

Norwood Mayor Tom Williams said the city is trying anything it can to keep the company. There are no other sites within the city that are large enough, but officials are exploring options at the current location...

Xavier University Parents - Buy a Rental Property for your Kids!

I've come to realize that it's tough for parents to find information on how to find and buy a rental property for their kids to live in while they attend college. I wanted to publish an article for parents of Xavier University bound students to help guide them through the process and to promote the benefits of buying a rental property instead of paying a landlord. Above is a map of the greater Xavier University area with my recommended neighborhoods shaded in red. These neighborhoods have affordable homes, are safe, and although might not be next door to campus, will be quite reasonable for your children to occupy. As you search for listing at my website, http://www.cincyforsale.com/, or any other MLS site, compare the location of that Norwood, Evanston, or Avondale property to the above map. Seeing the neighborhood in person is of course the best way to determine if it's the right fit, so feel free to contact me for any showing needs.

If you're unsure about whether buying a home is the right move for you, consider these points.

• It's a Great Investment

If you purchased a $150,000 property and put down 20%, you'd have a monthly mortgage payment of roughly $750, including taxes and insurance. A 3 bedroom property will house two non-related students over three years of school who will be happy to call you landlord. The average rent per student in the area is $450/month. By collecting $900 per month, you'll cash flow $250.00 per month on the rental. At the end of 3 years of ownership, you will have cash flowed $9000 and paid down your mortgage by $4,496. You will also benefit with a $7250 tax write off from the mortgage interest, saving you up to $2000 per year on your taxes. The area has appreciated 3% per year on average for the last 20 years. You can expect your $150,000 home to be worth $163,500 when you sell. In the end, you'll have $17,996 of equity in the home, have saved $6,000 on your taxes, and cash flowed $9000 for a total monetary gain of $32,996. Sounds a lot better than wasting over $16,000 in rent for your child over their college career. (This does not take into account additional costs for utilities, your exact tax bracket, cost to maintain the property... but you get the point)

• Your child won't be living in a "dive"

College campuses are known for having poorly maintained rental properties with unsafe and unsanitary conditions. I know I got sick a lot more in college due to the sanitary conditions than I do now. Not only will your child appreciate the home, but so will you when you visit!

• It will teach your child responsibility

A child who has a link to the ownership of a property will take care of the property much more than they would a rental. You'll be surprised how your child will become your right-hand-partner to assist in maintaining the property. It will teach them responsibility and help prepare them to become a future homeowner themselves.

I currently live about .2 miles from campus and am surrounded by Xavier students. I know the area very well and will be happy to assist you in finding the right property for your son or daughter. If you're a first time investor, I do have several properties of my own that I manage and will be happy to assist you in getting your rental property up and running. Thanks and go Musketeers!

Sellers: How to see eye-to-eye with Buyers in the Cincinnati Market

There exists a strong disconnect between buyers and sellers in the Cincinnati Real Estate market regarding the value of their homes. In no other industry is an item's value so arbitrary that licensed professionals will literally give you up to a 50% range in what they believe your home is worth.

When selling a home, a good real estate agent is necessary to help you see eye-to-eye with the other side.

When working with buyers, I've come across three different types. My favorite type of buyer are those that have relocated to Cincinnati from a larger city, especially one with a hot real estate market, they're more likely to rely on the seller's asking price as an indication of the real estate's value. They tend to bid at the asking price or very close. I come off as a hero by talking them into a lower bid, which most of the time works out. Their main priority is the home and view the Cincinnati home prices as "chump change." When they're able to get a nicer home for less than half the cost of their previous residence, cost isn't as much of an issue.

Another type of buyer is the one that will take advantage of their agent's knowledge and experience to assist in making decisions. I also enjoy these types of buyers. Sick patients rely on their doctors, criminals rely on their lawyers, so why shouldn't homebuyers rely on their Real Estate Agents? These buyers take your experience and advice when negotiating an offer. Their number 1 priority is the home, and their number 2 priority is getting it at the best possible price. I've negotiated hundreds of homes and understand the process better than the average Joe. Nearly all of these buyers end up happy. The important thing is to be sure that your agent is competent! There are a lot of bad agents out there, so make sure you use an experienced agent that was referred to you.

The third type of buyer is the one that determines the value of a property in their own mind without taking the market statistics into account. The buyer might do some research to validate comps in the area, but regardless of the outcome, expects to take 5-10% off of the list price through negotiations because they feel they're entitled to it. In their minds, if the seller wanted $100,000 for their house, they should have priced it at $109,900, not $100,000. Their top priority is winning the negotiation battle with the seller and getting what they feel is a "great deal." They put a lot of emphasis on the seller's list price and would rather settle in a home where the deal was good, than settle in a good home where the deal was not as good.

As a seller, it's important to quickly determine what type of buyer you're dealing with during negotiations. You can't afford to let any potential buyer slip away by taking only a single course of action.

If you come across the "Relocated Buyer," don't get greedy and think that since he offered $2,000 under list price that he'd be willing to pay full asking price. Make him happy and accept his offer. Goodwill at the start of the transaction will help during further areas of negotiation. It's also important that your home is priced accurately so that an appraisal or outside influence does not give him the impression that he's overpaid.

If you come across the "Relying on the Agent Buyer," then the negotiation period should hopefully play out like clockwork. Both agents will work together to determine an accurate value of the home and a fair agreement between both parties. Trust your Realtor to guide you through the process.

If you come across the "Independent Buyer" that believes he knows the value of homes better than anyone else in the world, you have your work cut out for you. Your agent will need to figure out how to convey an accurate value of the home to the buyer and determine how to structure the deal so that the buyer believes he won the negotiating period. You'll likely sell your home at your bottom dollar price, but at least it's sold - THANK GOODNESS FOR YOUR REALTOR!!!