Point of Sale Inspections in South Euclid. Residents - Vote No on issue 106!

Real Estate Agent with Local-n-Global Realty, Cleveland and International Real Estate Solution BRK 2007000844

South Euclid is one of the most desirable destinations for investors in our East suburbs of Greater Cleveland. Why? Because of many reasons:

1. South Euclid-Lyndhurst Schools system is good.

2. Location is so convenient and accessible to University Circle, Downtown, Clveland Clinic, major highways and parks.

3. Very well developed infrustructure - shopping malls, restaurants, entertainment.

4. Nice affordable housing, desirable for both owner-occupants and for renters. 

5. No Point of Sale (POS) inspections! Only regular exterior check-ups of all houses in the neighborhoods by the building department.

South Euclid, vote NO on issue 106

POS already did a bad job in adjacent Cleveland Heights and Shaker Heights, less harmful but still unfair in Mayfield Heights. What is wrong with POS inspections, you wonder? 

First of all, it puts the home sellers and home buyers in a disadvantageous position in comparison with the seasoned residents. Let's say, you need to sell the condo in Mayfield Heights. You need to apply for a POS inspection. If the city inspector finds that you have some code violations, you are forced either to fix them or to ask the buyer to assume them by signing the special paper and putting specific amount of money into escrow account.  

Few problems occur with POS escrow accounts:

1) Many buyers just don't have extra money to put in escrow

2) Even if the sellers agree to put necessary funds in escrow, lenders may disapprove the mortgage because of  existing problems with the property (problems, in fact, may be just minor, not too hard to fix)

3) Many sellers do not have available funds to fix the violations prior to closing.

Opinion of Cleveland Area Board of REALTORS and my opinion is to avoid additional Point of Sale inspections. We want our neighborhoods to be maintained well and our local government to check them out regularly, on street-to-street basis, not on the fact that someone needs to sell or buy.

Dear Residents of South Euclid! Please VOTE NO to ISSUE 106! Don't let your houses lose even more equity by letting pass this dangerous issue!

Need to buy house or condo in South Euclid?

Please call Svetlana Stolyarova 216-548-4663

24/7 Real Estate hotline 877-770-5551

E-mail us: Realty@Local-n-Global.com

Comments (12)

Mike (Inspector Mike) Parks
Inspector Mike - Circleville, OH
Inspector Mike


Can you post a copy of issue 106?

We are under The RCO (Residential Code of Ohio) 2006, so as for the picture above what is the Housing Code that they are referencing?

The code, building code, is not retroactive. Or are these zoning or outside violations?

You would have to prove the violation was a violation at the time of install. Very hard to do.

Again do you have more info?

Oct 09, 2008 03:10 PM
Svetlana Stolyarova
Local-n-Global Realty, Cleveland and International Real Estate Solution - Mayfield Heights, OH
Local-n-Global Realty, Broker 216-548-4663

Mike - please refer to this information on City Ordinance 65-05 so far: http://southeuclidoversight.blogspot.com/. There are copies of the documents and publications in the local media.

I am glad that citizens placed this ordinance on ballot. Vote NO on issue 106!


Oct 10, 2008 01:30 AM
Svetlana Stolyarova
Local-n-Global Realty, Cleveland and International Real Estate Solution - Mayfield Heights, OH
Local-n-Global Realty, Broker 216-548-4663
Oct 10, 2008 04:58 AM


Perhaps you should move from your Moreland Hills home into South Euclid where you are attempting to influence and pillage the residences

Obviously you position is a very self serving position by a realtor who is hard up to earn a commission at the expense of the residents of South Euclid.

You are well aware that this legislation DOES NOT increase foreclosures.  What it will do is help prevent the housing stock from further decline. As I said all you want is is your commission and then you move on.  You do not care if the person buying a house has the financial capability to repair the house. This legislation guarantees that money will be held in escrow to make the repairs necessary to bring the house up to code.  As any realtor should know that is taken into account when the property is priced and the final purchase price is negotiated and agreed upon. This legislation guarantees that during the negotiation process the money necessary to make the repairs is not only considered but actually set aside.

Take note that your own community of Moreland Hills has a point of sale inspection.  So I wonder why you live in such a repressive city?

Oct 17, 2008 04:37 AM
Mike (Inspector Mike) Parks
Inspector Mike - Circleville, OH
Inspector Mike

Pretty harsh comments from someone who will not leave a name.

PS the links do not work.

Oct 17, 2008 09:42 AM
Svetlana Stolyarova
Local-n-Global Realty, Cleveland and International Real Estate Solution - Mayfield Heights, OH
Local-n-Global Realty, Broker 216-548-4663

Mike - I am sorry that links do not work from your computer - I will e-mail them to you. I wish the anonymous commenter disclosed the name and occupation, so we might've discussed openly the serious issues related to POS.

Moreland Hills where I reside has the only POS - the septic tank inspection, which is dictated by EPA, peformed by the Department of Health and is totally understandable. All other housing issues are left to responsibility of homeowners. This exactly how it should be.  The owners are responsible for their own houses and for compliance with any building, zoning or any other codes. Why should this responsibility be enforsed only at the point when the owner is trying to sell? Only because it's easier for the City? Absurd.

Indeed, there are the communities, the cities and the whole countries where governments assume that their citizens are irresponsible and unable to keep their own assets in a good shape. These governments assume that their citizens should be directed to what to do, when to speak and how to think. These are communists, who love to totally control their poor, irresponsible, stupid citizens.

I know what I am talking about. Before moving to blessed Moreland Hills, my family lived in Moscow, Russia, former USSR. Soviet government also assumed that their own citizens are not smart enough to take care of themselves and their assets. Actually, we were not allowed to have any assets. However, do you know where the country named USSR is? It's gone. Disappeared. Wrong assumption of the Soviet government led it to nowhere...

As a REALTOR who loves South Euclid and sells in South Euclid, I feel real sorry for my actual and potential sellers who lovingly maintain their homes, care of their properties and have no chance to sell them for the price at least the same as they paid 10, 15, even 20 years ago. Prices were affected by foreclosures, bank's aggressive pricing strategies, lack of financial options for the buyers. It will be even fewer options with POS and City requirement to escrow 150% of estimated repair costs. IMHO, with POS prices will drop down even deeper. We will see more and more nice South Euclid properties selling for under $50K. That's a shame!

Oct 17, 2008 12:48 PM

You love selling houses in South Euclid, taking your commissions and running to Moreland Hills.  You have no commitment to South Euclid.  It only represents a source of income.  The more sales you churn out the more your earn.  You make absolutely no solid and substantial investment in South Euclid.  You do not leave dollars behind in the community.  Realtors who oppose Point of Sale have one complaint, it impedes there ability to sell a house quickly, take the commission and run. 

What you leave behind in a large number of cases are buyers who do not have the financial capability to repair their homes and bring them up to code.  What you effectively leave behind is a homeowner who will be inundated with housing violations, an inability to cure them, trips to court, etc.  By opposing point of sale YOU do a great disservice to not just the community South Euclid but to the people you represent as either buyers or sellers.

Again you are just a hit and run realtor from Moreland Hills looking for the easy dollar at the expense of the residents of South Euclid.   

Oct 18, 2008 04:38 AM
Mike (Inspector Mike) Parks
Inspector Mike - Circleville, OH
Inspector Mike

To the poster who does not have the guts to leave his name.

Inspections when buying are the buyers responsibility NOT the government's responsibility.

"Code" violations that you are talking about are not the same as building code violations. Most building code violations, if any per current code, are grandfathered.

Sounds like you have an ax to grind.

What individuals, building department or zoning, are going to perform these inspections? What are there(their) qualifications? What is the remedy for bad inspection reports.

One example may be the inspection of the electrical system. Or read this. Ohio Electrical Inspection Rules. So an unqualified inspector from the city put the stamp of death on my house, what is my recourse?

Should we have a POS on used cars?

Again post your name so that we know your credentials or just be quite.

Oct 19, 2008 12:45 PM
Svetlana Stolyarova
Local-n-Global Realty, Cleveland and International Real Estate Solution - Mayfield Heights, OH
Local-n-Global Realty, Broker 216-548-4663

Mike - thank you for your support. You are absolutely right about qualifications of those who suppose to perform these inspections. Thanks for information about Electrical inspection rules - that was helpful.

I hope that the main concern of the City of South Euclid is to improve the housing stock but the offered solutions are so poor, that they may have an adverse impact.

They already do the random exterior inspections which is absolutely ok - if people violate the rules, City warns them and penalizes them. These inspections are FREE for residents. So, City decides to charge the sellers on actually the same inspection, which they now connect to POS and collect unreasonable 150% of the highest of two estimates to correct the violations on escrow ! That's just easy target to earn some pocket money! BTW there is no information about the cost of inspection - but we know how many houses sell in South Euclid every year - for 2007 it was 309. Not too much to earn on POS! 

Let's review the statistics and do some math. There are currently 301 active listings in 44121 Zip code of South Euclid and 27 active homes in 44118 Zip code. Average asking price for 44121 is $123,267, and for 44118 - $78,337. There are 13 contingent listings as for today. Average asking price for the houses on the contract is $75,715, which is much lower than average sold price for the houses sold in 2008. It was incredibly low $83,776 for 44121 Zip code, and $37,575 for 44118 Zip code.

Let's say, the buyer is buying the house in South Euclid today. He more likely brings no more than 5-10 % down payment. FHA allows 3 % down payment today - and this program is very popular! Remember, average asking price for the houses  on the contract is $75,715. Even $1,000 of minimal escrow requirement is more than 1 % of the price! And it's accessible mostly after correction of the violations, which means that people actually need available funds to spend on correction of violations, which brings unnecessary burden on the new home owners! Plus there is a time frame for correction and penalty for non-compliance. The buyer may think, Isn't it easier to buy in Lyndhurst - the same schools system, nice neighborhood, comparable houses, and NO POS. That's how City may lose new residents.

Many of the houses sold in 2008 were bank owned or REO properties. It's very unusual for the banks to correct anything prior to closing. How can City of South Euclid force the bank which may be located in India or Germany or even Dallas, TX to cut the grass or replace the old garage? I don't think they have enough power to do it.

Vote NO on issue 106!

Oct 20, 2008 12:57 PM

I was born and raised in South Euclid.  Graduated Brush in 1982.  My mother still lives in the house that I was born in. My brother is in Iraq for his second tour and will return home (to South Euclid) around Christmas time. I own 3 rental properties in South Euclid and I live in Lyndhurst.  I have 6 children in the public schools. I do all the maintenance personally on the South Euclid rentals.  I also own rental property in Lyndhurst, Richmond Heights, Cleveland Heights and East Cleveland.  I think I'm qualified to talk. First of all, the South Euclid inspectors and Housing Department are great at working with owners.  I do not like the POS structure in Mayfield Heights because the escrow process handicaps the free-market and keeps people from wanting to buy property there. The system is too complicated. South Euclid is a family-friendly city and the friendliness is in jeopardy. These are tough times for everyone.  Even former-communist-country-living Realtors are hurting. If there are to be inspections, they need to address all properties equally regardless of ownership status or the sale intentions of the owner.  Let's do things with the big picture in mind. Point-Of-Sale inspections are a sign of short-term thinking and a quest for power. Rentals and owner-occupieds, for-sale properties or not-for-sales should all be treated the same.  Anything else is unfair...but there are alot of unfair things in this world.  Thank God it's Friday. 

Oct 31, 2008 01:43 AM
Svetlana Stolyarova
Local-n-Global Realty, Cleveland and International Real Estate Solution - Mayfield Heights, OH
Local-n-Global Realty, Broker 216-548-4663

I totally agree that owners of all types of properties should be treated the same. Hope that people will vote No on issue 106. I wish that hard working people who live in South Euclid, love South Euclid, take care of their properties in South Euclid will not lose equity in their houses because of mistakes regarding POS inspections.

I do not know the name of the last commenter but I wish you and your family the best! Let your brother,mother, children and all your family to be together for happy holidays! Thank you for your deep thoughts and great understanding of the situation.

Nov 01, 2008 05:45 PM
Chris the wise

I just tried purchasing a fixer upper, would have paid cash for the house but did not know about the required 150% escrow at the time.

Now, after learning this I have cancelled any negotiations about the property. I will not burn my hard earned cash on this disaster-program.

I have planned investing $70K into this house over 6 months and since I can not do this, NO, but NO thank you.

Feb 23, 2015 03:16 AM