Heading into another record year, prices on a growing number of Lorain County real estate properties are rising. According to Craig Snodgrass, county auditor, that will increase his office’s estimated revenue by more than $500,000. Responsible for keeping track of real estate sales and transfers in Lorain County, Snodgrass believed that this year’s conveyance fees would reach approximately $4.2 million. However, in mid-October, he modified that number to around $4.8 million by the end of 2017.
Snodgrass stated that numbers are off the charts. In fact, he and others questioned whether things would ever slow down, which they have not. Along with an increase of transactions is an increase in money. Even in Elyria, he stated that sales are beginning to pick up somewhat, often surpassing current market values.
The preferred market-value-to-sale-price ratio at the auditor’s office is around 90 to 95 percent. That means if the value is close to $95,000, he would like to see the sale at about $100,000. Because the market fluctuates, he said that his office does not want to be directly on top of their value. Instead, they are working to maintain fairness.
For every $1,000 of a property’s selling price, the Lorain County Auditor’s Office gets $4 in conveyance fees. Therefore, the higher the property value, the more money the office receives. In September of this year, conveyance fees amounted to roughly $420,000. However, Snodgrass anticipates that for transfers, this month and December will be even bigger since buyers and sellers eagerly want to close deals before the end of the year.
When questioned about properties selling in Elyria, Derrik Tedrow, age 50, was not overly surprised. As he put it, this town currently has a lot of positive things going on, including new schools, rising home prices, and more people relocating back to the city. Tedrow purchased two homes in Elyria, one as a rental. He stated that at this time, the market is excellent for both buyers and sellers.
In Lorain County, home sales are tracking parallel to the increasing population. From estimates in 2016, it rose 1.7 percent, primarily in Avon, Avon Lake, and North Ridgeville. While growth affected Vermilion and Lorain, as well, it was not as significant. Currently, residential real estate accounts for up to 90 percent of all property transfers, although other parts of the county have seen several notable commercial deals.
Igal Namdar is now the new owner of the Midway Mall, having purchased it last July for just under $4.5 million. In June, a parcel of land near Cabela’s sold for $1 million. In the city of Avon, a cash deal valued at $33.4 million transpired, and the University Hospital’s Avon Rehabilitation Hospital transferred owners. As stated by Snodgrass, the auditor’s office has been beyond busy, and deals keep getting bigger.
Although the hottest real estate deals typically involve North Ridgeville and Avon, Lorain is now seeing a lot of movement. The Lorain County Council approved rezoning for a new housing development of 151 homes at Jaeger and Kolbe Roads with prices between $250,000 to $275,000.