September 2011 Credit Suisse Survey of Housing Market

Each month, Credit Suisse surveys Realtors about their local market. September’s results were just released and for the metro Detroit area it concludes that buyer traffic and sales prices are down and incentives offered to buyers from new home builders are flat. Even with true, record low mortgage rates (below 4%!), there are skittish buyers, largely attributed to economic uncertainty.


While the most recent month’s home prices on new construction are holding steady, data indicates prices will drop in the next few months. Folks in the Lone Star State should be happy, though, as both Austin and Houston were showing signs of a modest rebound. On the other side of the spectrum, Charlotte and New York saw big declines in buyer traffic.

There are some new construction starts in the Livingston County market, but I wouldn’t call it a groundswell of activity. After the last couple of years, any new home building is a good sign. Construction is occurring in the Northridge Hills condominiums in the City of Brighton, and there are some homeowners building outside of large subdivisions controlled by the big building and development groups, too. If you want to build a home, you may have a little difficulty in finding a willing lender, but there are still a few out there doing new construction loans.

Brighton Country Club Annex Sub Attractive For First Time Buyers

Located in Brighton Township, just outside the Brighton City limits, this platted subdivision has been attractive for first time homebuyers for many years. Affordable ranch homes in Brighton schools, convenience to retail shopping and easy access to Interstate 96 and US 23 are some of the draws.

The boundaries are roughly Grand River Avenue to the south, Interstate 96 to the north, Old US-23 to the east, and the Brighton City limits to the west, and there are 179 homes in this sub. The Brighton Country Club subdivision is on the other side of I-96 and not included in this post.

The streets are all public, so they’re maintained by either the road commission or the township. Originally, the subdivision was served by community wells, but in January 2008, water service was transferred to the Livingston County Water Authority. The lots are predominantly 60 ft wide by 132 feet deep, although some are 90 feet wide. Some of the homes also have basements, but there are also some built on crawlspaces or slabs. Garages (when present) are typically two car variety and are most often detached. Most of the streets do not have through traffic, except for Burson which empties to Old US 23 on the east, and at Leland just north of Grand River on the west.

The housing stock consists of mainly ranch style homes in the 900-1200 sq ft range, most with three bedrooms and one full bath. You can find a few 1400+ sq ft homes, and some will offer an additional half or even full bath, but those are somewhat rare.

In 2008 there were 5 sales reported in the local MultiList System (MLS), all purchased by owner occupants with either FHA or conventional mortgages. The average sold price was $114,310 and the average time on market was 99 days. There were also 5 sales in 2009, but three were to investors buying for cash and the average sales price had plummeted to $67,010. Sales picked up in 2010 with 10 being reported. Three of these were investor-bought at an average price of $45,758. The other 7 were bought on either FHA (1), conventional (1) or USDA Rural Development (5) loans and were for owner occupants. The average price for these seven homes was $87,868.

So far in 2011 (as of 10/09/11), there have been 13 sales, 7 of which were to investors at an average price of $48,650, the rest going to owner occupants with an average sales price of $84,833. Many of the investor properties end up being rentals in the $800-900 range, but a few end of getting “flipped” to owner occupant buyers. The price disparity between investor purchased and owner occupant purchased homes shows that people are willing to spend more money for homes in better condition. If you don’t have the experience, time or money to do major renovations or big “DIY” projects, that is the way to go.

This neighborhood has become more affordable since the housing downturn, and with its location in Brighton Schools, the lower township property taxes, and a location that is great for commuters to Ann Arbor it has remained popular. Right now there are four for sale varying in price from $49,900 to $85,000. If I can assist you in your home search, please feel free to contact me via email or facebook.

Flood Insurance Update

I participated in a discussion regarding flood insurance recently at my office (Preview Properties, PC). Of course, with the redrawing of FEMA flood plain maps, there has been a lot of confusion for everybody involved – insurance agents, real estate professionals, surveyors, and consumers. The only party not confused seems to be the Federal Emergency Management Agency (FEMA).

Of Michigan’s 83 Counties, 59 will have re-drawn flood maps but right now only 22 have been completed. Here’s an interesting State statistic for Michiganders. For the years 1978 through 2009, $284.4 million dollars left the State in flood insurance premiums. In that same time, $45 million came back in the form of claims payments. Not a very good return for us as a State.


A few basics. Federal flood insurance covers only the structure, not personal possessions. Additional flood insurance policies are available through the National Flood Insurance Program (NFIP) and your homeowner’s insurance carrier for personal items, but that coverage is also quite limited or quite expensive.  Rates are better if your municipality participates in the NFIP. As of 9/28/2011 there were no Livingston County listings, but Augusta and Ann Arbor Townships and the City of Ann Arbor were listed for Washtenaw County.


There’s a lot of talk about the 100 year flood, too. That doesn’t mean what some folks think it means, which is often that the area will flood once every 100 years. It actually represents about a one percent (1%) chance of a flood in any given year.


If your property is in a flood zone, you have to pay for flood insurance. Period. However, with the re-drawing of flood maps (still in progress for much of the nation – and parts of our State), some areas may not have been mapped properly and there could be properties that qualify for exemption. A Letter of Map Amendment (LOMA) will be needed, and this is definitely not something you want to do yourself. Your ability to acquire a LOMA will depend largely on the lowest point of your home’s exterior, and the best way to determine this to FEMA’s satisfaction is to have a surveyor come up with the elevation.


A surveyor experienced with flood insurance is your best bet. If they are certified to electronically file a Letter of Map Amendment (e-LOMA), this can be done in a very short period of time, a matter of weeks. This immediate help is available to properties in flood areas designated AE, or A1 through A30, because the base elevations of the area are known and an e-LOMA can be filed. If you’re in an ‘A’ designated flood area, it will take longer and require a physical package of documentation to be sent in to FEMA.


In some cases, a homeowner that is successful in getting a LOMA approved may be eligible for at least part of their flood insurance premiums paid for the last year or two. There are also other ways to get a LOMA approved, especially if your home is built on a crawlspace. This process is called a Letter of Map Revision-fill (or LOMR-f). Usually, you must have a landscaper install a clay berm around the low point of the house, it has to be 95% compacted, then covered with fill and landscaping. By changing the lowest adjacent grade (LAG) and installing flood vents in the foundation, a LOMR-f may successfully get you out of flood insurance.


The cost of this service which includes surveying and documentation submittal can run $600-$800, but at least one SE Michigan company will consult with you and only accept the full fee if they are able to help. That’s better than what many homeowners are paying every year for flood insurance. I’m happy to pass that info along to anybody that may need it, feel free to contact me via facebook, or phone.

photo credit: think4photop / FreeDigitalPhotos.net

Livingston County Rental Market Is ‘Robust’

At Preview Properties, we get a lot of calls about rental properties in Livingston County. Many apartments in the Brighton and Howell areas are running at a higher capacity now, presumably due to the number of people who have lost their homes to foreclosure. But some are also potential first-time buyers who are not convinced this is the right economic time to enter the housing market as a homeowner.


In Livingston County right now, our MLS has 17 properties for lease at or under $1500/mo. Twelve are detached homes, the other five are condos. If you look at the $1000 and under market, we only see three homes and two condos. Of course, not every rental property is placed into the MLS.

Apartments are an option for some people, and you can expect to spend around $800 or more to live in a newer community with some amenities. Things like a washer and dryer in your unit, perhaps a pool and clubhouse, with or without a fitness center. There is also a higher end apartment that has a few three bedroom units, two car attached garage, private entrances, and pool/clubhouse, but they start at $1350/mo, with two bed units starting around $1200/mo. Some communities have waiting lists, too, and it’s not unheard of to leave a deposit if you want to be placed on the waiting list.

Some apartment complexes will let you enter into a six month lease rather than the usual twelve month lease, but expect to pay at least an additional $100/mo to do that. Do you have pets? Expect to pay an extra security deposit (damage) fee as well as a few extra bucks per month. I know that many people I talk to absolutely won’t consider a condo or an apartment. For those folks, if they can’t find what they want through a property listed in the MLS, there is always rent dot com, or good old craigslist.

If you want the amenities like a pool and clubhouse/fitness center, an apartment community is not a bad choice. Of course you won’t have covered parking (unless there are carports-for which you’ll pay extra), but you can forget that $30/month you’re paying to the gym. Also the convenience of a washer/dryer that come with the apartment is good, and repairs are normally handled pretty quickly in a well run community, too. Not terribly important for some things, but it makes a difference if your refrigerator, water heater, furnace or air conditioning goes out.

The tried and true method of looking at the Sunday newspaper ads may work, too, but a lot of landlords are going the electronic advertising route these days. No matter what your housing choice is, be sure to call quickly because the feedback I’m hearing is that affordable units ($1200 and under) are going very fast. If I can be of service with your home search, feel free to contact me.

Save The Wildlife 5K Run and Walks



New Nature Zone at the HCNC


This past Saturday I volunteered at the Howell Conference and Nature Center’s ‘Save The Wildlife’ 5K. It was a beautiful morning for the runners and walkers, cool and crisp at the start, then sunny and warming as the race concluded. It was also perfect weather for the volunteers, who sometimes struggle to stay warm without the assistance of generating a little extra body heat via exercise.

The 5K course traversed the trails on the property with a decent uphill on both of the first two miles, but the runners had the benefit of a good downhill on the last mile. It was great to see so many ages participating in the run and walks. Excellent support, smooth operation of the race and all of the athletes that I spoke with indicated they’ll be back next year.

The race staff has really become super organized in this third year of the event. This year the organizers went to full ‘chip’ results – start and finish timing – with the B-tag technology. A B-tag is where an RFID device is part of the runner’s bib (number) that they wear. It records their time from when they cross the start mat till the time they cross the mat at the finish line for an accurate event interval. This is different than ‘gun time’ where everybody has the same starting time, even if you’re the last person to cross the start line. Competitive runners certainly prefer a chip-timed event.

The Center has a lot of great activities - a Wild Wonders Wildlife Park, summer camps, a ropes course and zip line and Michigan’s tallest climbing tower. There’s also the new Nature Zone Center, periodic wildlife photo workshops, special events and don’t miss the new courtyard. The families of the participants had plenty to do while they waited for the athletes to finish their event.

The race started promptly at 10am with the first 5K runner coming across the finish line with a time of 19:29. Awards were wrapped up by 11:40am, leaving plenty of Saturday left for other things. Funds from the race will be used for the wildlife rehabilitation center

The Howell Conference and Nature Center is one of the area’s jewels. Great family activities, environmental education, and they are generally the ones called when an injured animal is found. If possible, they’re rehabbed and put back into the wild. They do accept general donations, donations of needed supplies for the infirmary, or gifts through the animal adoption program. You can visit their web site at http://www.howellnaturecenter.org/index.htm, or better yet, drop in for a visit.

Some Sellers May Be Exempt From State Transfer Taxes

An interesting point came up at one of my company’s (Preview Properties, Brighton, MI) recent sales meetings. It’s that some sellers may not have to pay the State transfer tax at closing. Here’s how it works, according to Michigan Compiled Laws (MCL 207.526):

You must meet all three conditions.

1. The home must be your principle residence and classified as homesteaded

2. The SEV in the year you sell must be less than the SEV for the year you acquired the property

3. The property can’t be sold for more than its ‘true cash value’ when it’s sold

So, if you bought a house in 2006 and the SEV was $74,000 and sold it in 2011 when its SEV was $68,000, points 1 & 2 above are met. The true cash value is established by multiplying the current SEV x 2. In this case it would be $68,000 x 2 = $136,000. If the house sold for $125,000 in 2011, all three criteria have been met, as long as it was your principle residence and homesteaded.

A couple of points. Most electronic public records only go back five years, so you may have to dig through your old property tax statements to find the SEV in the year you bought the property. Make your title company aware that you qualify for this exemption, and provide them with the documentation.

This applies only to the State Transfer Tax of $3.75 per $500 of sale price. On the above $125,000 sale that amounts to $937.50 – not a bad exemption! You will still have to pay the County Transfer Tax of $0.55 per $500 of sale price, or $137.50, but obviously you’re ahead of the game.

Don’t confuse what the law calls ‘true cash value’ (based upon the SEV) with your real ‘market value’. Your Realtor determined the market value when he or she suggested the listing price. Market value can be defined as what a ready, willing and able buyer will pay for a given property. That could be more, or less, than what the State considers ‘true cash value’. In fact it is almost always a different figure.

One final caution. If you take this exemption and were not entitled to it by the criteria of the law, there is a 20% penalty of the tax assessed plus whatever tax is due. So make sure you have the Title Company double check everything to verify that you are eligible to claim this exemption.

My special thanks to Sherry Hinsperger at Sterling Title in Brighton for the clear explanation of how this works.

Feel free to contact me if you are considering the sale of your home. I’ll be happy to put my 13 years of experience to work for you! Get useful info like this by signing up for my monthly email newsletter on the right side of this blog page.

The Michigan Soybean Festival

I headed out to the Fowlerville Fairgrounds with my wife to take in some knowledge of the soybean. A mere $3 entrance fee (with free parking) and a few free hours were all that was needed. Who knew that there would be so many cute chicks there, too.


There were swap meet vendors, an old Model A, and some tractors on display. We missed the tractor pull and the evening entertainment, but the Historical Village was open, and the soybean displays were interesting.

Being ‘city slickers’, we decided that farmers are pretty ingenious. Who else could get you to buy tickets to ‘cow pie bingo,’ a game where you literally pay to watch where a cow poops. A grid is drawn on the ground and a well fed cow then walks around and does its thing. The grid with the most ‘stuff’ is the winner. As my wife said, “at least we didn’t have to fling it or pick it up.”

And because this is a two-day event, your hand stamp was good for both days. There were a lot of other things going on in the County this weekend which likely hurt the attendance a bit, but it’s an interesting concept and has the potential to grow.

Really, it’s a celebration of farm life, and I was surprised to find that Michigan has over 2 million acres of soybeans planted and that it is our number two crop, adding about a billion dollars to the State’s economy. That’s a pretty good reason to celebrate the soybean, too.

Centerpiece of Brighton’s 9-11 Memorial Arrives

The public was encouraged to line Grand River from Genoa Twp to the Brighton Area Fire Department with American flags to help commemorate the arrival of a girder from the World Trade Center, the centerpiece to Brighton’s 9/11 Memorial. I entered Grand River near Hacker Rd., and saw the first flag just west of Hilton Rd, where a family was out with a flag-laden golf cart and the entire group holding flags, too.


Small groups gathered on both sides of Grand River near the Fire Station, with a larger crowd at the site. People came alone and carrying large flags, or in twos and threes. Families were there with young children, and many veterans and a few presumably active duty troops in fatigues, too. At 12:07, the vehicles escorting the girder came into view. A large contingent of Rolling Thunder Chapter 5 on their motorcycles, a military Hummer, various police cars and fire trucks were part of the procession, as well as the truck with the flag covered girder.

Fire Chief Larry Lane addressed the crowd, as well as Capt. Gregory Mowbray, who was one of the six Brighton Area Fire Department personnel that travelled to NYC to pick up the girder.

The truck was positioned near the memorial, and a lift was used to hoist the girder into place. As each clip on the memorial was attached to the girder, the crowd applauded. Shortly after the last clip was affixed, some in the crowd started to quietly sing “God Bless America.” Many more joined in.

Chief Lane and Capt. Mowbray then presented the folded flag that had covered the girder en route to the memorial site to Jim Lemke, a local veteran and member of the Rolling Thunder contingent. The girder was covered with a black cloth until tomorrow’s formal dedication, which will occur at 9:00 am.

The memorial looks even better than the architectural renditions that I’ve seen. If you’re available tomorrow morning, consider attending the official unveiling. Grand River will be closed at 8:15 am from Main Street to Cross (near the Meijer store), but a shuttle will be running from Meijer’s to the Fire Station. Chief Lane suggested that you try to arrive no later than 7:30 as a large crowd is expected.

Brighton Michigan Events This Weekend

It will be a pretty busy weekend in Brighton. The Greater Brighton Area Chamber of Commerce is holding the Smokin' Jazz and Barbecue Blues Fest is this weekend from 5pm to midnight Friday September 9th and again noon to midnight on Saturday the 10th in the Municipal Parking Lot next to the District Court. Great line up of entertainers, including Motor City blues icon(ess) Thornetta Davis. And don't forget the great food!

On Saturday at 11am, the centerpiece of the new 9-11 Memorial will be delivered to the memorial site at the Brighton Area Fire Department, 615 W. Grand River, 48116. Supporters are encouraging area residents to line Grand River while holding American flags of any size.

Sunday, September 11th, the memorial will be dedicated at 9am. Grand River will be closed to traffic from 8:15am to 11:00 am from Main Street to Cross Street. There will be a free shuttle running from Meijer's at Cross and Grand River. A very large crowd is expected to attend.

Why not have some fun Friday and Saturday at the Smokin' Jazz and Blues Fest, then attend the 9-11 Memorial dedication on Sunday? Brighton has a vibrant downtown with some interesting shops and restaurants.

Brighton’s 9/11 Memorial Progresses

Work continues on the 9/11 sculpture site at 615 W. Grand River, Brighton,  in front of the Brighton Area Fire Department. A crew from Integrity Concrete was present when I stopped by this morning. All workers were in constant motion in preparation for the official unveiling in a little over a week from today.


The centerpiece will be a twisted segment of steel beam from the World Trade Center, suspended from the four angled black beams in the picture and will hover above pieces of broken concrete. There is also to be a wall around the memorial with the names of emergency responders that perished in the disaster.

A team of Brighton Area Fire Department personnel travelled to New York City to pick up the approximately 8’ x 3’ beam. Site plans call for the beam to be displayed in its current condition, rust and all.

New Listing-12.28 acres Commercial Land

This 12.28 acre parcel is just west of the Village of Pinckney. There is 590 feet of frontage on paved State Hwy (M-36) with good traffic volume. Municipal water lines are in close proximity, although permission to tap into is not guaranteed.  C2 zoning opens many possible uses.  MLS 211092875, $399,900.

Adjacent to Village Elementary on the south side of M-36.

Market Notes – August 25, 2011

I just received the August survey results from Campbell/Inside Mortgage Finance, a firm that surveys agents and brokers from across the country. This is one of many Real Estate-related surveys in which I participate. Their results are broken down both in general groups of buyers and/or sellers and by geographic region.

scottchan / FreeDigitalPhotos.net

Last week my blog entry, “July 2011 Market Data” reported that the number of local cash sales is way down compared to 2010. This most recent national survey reports that July 2011 investor purchases are at a 12 month low. This survey also says that about half of investor purchased properties in July 2011 (48%) will be rented out, compared to 28% in July 2010. Is that due to tighter loan requirements for first-time buyers (investors wanting to re-sell have a worse market), a lack of confidence in the economy by buyers, or something else? It is a big difference in numbers.

Some survey comments conclude that investors are acting decisively while first-time home buyers seem to be demonstrating fear and indecision. The rental market in my area is robust, so perhaps investors are leveraging those conditions.

The sales price to listing price ratio for our region, the Industrial Midwest (MO, IN, IL, OH, MI) shows that damaged foreclosure (REO) properties sold at a 91% ratio. That means a $100,000 listing sold for $91,000. Move-in condition foreclosure homes did marginally better at a 93% ratio, short sales sold at a 91% ratio and non-distressed homes were at 94%.

Remember that homes in better condition sell for more money, too, so while the percentage differences are small, the ultimate purchase prices are much wider. The average sales prices on these categories are: Damaged REO - $57,938, move-in condition REO - $114,015, short sales - $150,493, and non-distressed homes sold for an average of $205,604.

If you are looking for a house, a foreclosure or short sale can be a great bargain. Just know the difference in timelines (and processes) to close, and also know that you still pretty much get what you pay for. A $57,000 house will need a lot more work than a $114,000 house.

As always, if you have real estate questions, feel free to contact me.

Community Shred Day - Saturday August 27, 2011

Matt Ikle, owner of Elite Insurance in Howell, invites the community to a Shred Day event on August 27th from 10 a.m. until 2 p.m. at his agency office, located at 3399 E. Grand River, Suite 201(Across from Home Depot). Anyone who would like to participate may bring along their confidential and personal documents to be shredded by Corrigan Record Management, free of charge from 10 a.m. until 2 p.m.

There is no charge for this service, but donations will be accepted with all proceeds going to the Spastic Paraplegia Foundation (http://www.sp-foundation.org/). The foundation is dedicated to finding the cure for spastic paraplegia as well as providing information and support.

If you have confidential documents that are in need of proper disposal, consider this event.  Identity theft is a major concern among consumers nationwide. You can visit the Elite Insurance web site at http://www.eliteinsuranceagency.com/ or call them at (517) 545-9325 for more information.

New Listing - 4228 Howard, Lincoln Park

Know somebody looking for a well maintained home in the downriver area?  This one owner home was built in 1953, has been lovingly cared for, and features plaster walls and hardwood floors throughout the first floor.  Great 18 x 9 covered rear porch overlooks a generous yard and two car garage, two first floor bedrooms and large third bedroom is the entire second floor.  Lots of storage, newer roof, south end of Lincoln Park, near Southgate.  Only $53,900.  24 hr notice to show, please.  Click link for full listing info. MLS# 211089192

Short Notes on Brighton Businesses

Things are certainly popping in Brighton lately.

The tentatively named Western House Brewery approved by Brighton Planning Commission for the old Western House Hotel location, AKA the ‘Pink Hotel’, at West Main and First streets. This should be a great addition to downtown. Final vote by City Council will be September 1st.

The Pound Sports Bar continues through construction on the site of the old Singer Press building at West and Main streets, across from the Main Street Martini Bar.

Elite Feet opens up downtown. With the Runnin’ Gear store on Grand River just west of Old US-23, we now have two running stores.

Art Van Pure Sleep store opens on West Grand River near Cross Street, in front of Big Apple Bagels.

The Greater Brighton Area Chamber of Commerce has relocated to the site of the old Mellus Hospital/Leah Gold Confectionary/Premier Mortgage (depending on how far back your memory goes!), next to First Presbyterian Church. Two blocks north of Main St.

A Green Oak Twp firm, Excelda Mfg, has agreed to purchase the old Brighton Chamber property to build a new HQ. It should be completed sometime late in 2012 and will have up to 50 staff members.

A new wedding cake design shop has opened up in the small space adjacent to Lu & Carl’s on W. Grand River. There was a monument company in that space most recently.

The Wooden Spoon opened up at the old Mexican Jones site. No liquor license yet, but the renovations look very good and the food and service is great. Some specialty food items are available retail, too. Lunch is sort of ‘a la panera’ style, but there is wait staff for the evenings. It’s great to see that parking lot packed again.

To Refinance or Not?

This is easily the most frequent recent topic of conversation when I bump in to past clients, fellow Chamber of Commerce members and almost anyone that knows I’m in Real Estate. The desire to take advantage of the great (record setting) lows in mortgage interest rates is overwhelming. Of course the sticking point is the ‘lack of equity’ caused by depreciation in our local housing market.

scottchan/FreeDigitalPhotos.net



Not everyone has that problem, of course, but many do. So here are a few thoughts on refinancing. Disclaimer: I am a Realtor®, not a mortgage broker. I don’t originate loans, and this will be fairly simple.

There are good reasons to refinance, and there are bad reasons to refinance. Good reasons include changing from a dreaded Adjustable Rate Mortgage (ARM) to a fixed rate mortgage – especially now with the low, low rates. Or perhaps you want to reduce your monthly payment. Who doesn’t?

If you owe 20 years on your current, higher interest mortgage and are told that you can refi for 15 years and still have lower monthly payments, why wouldn’t you want to do it? Make sure that if your loan ‘clock’ is starting back at a 30 year term, you’ll be in for the long haul, or at least that you’ll be making payments for another 30 years.

Remember that there are costs involved with a refi. You have to build those in to your analysis to make a good decision. There are also some costs (typically a percentage of your points) that are partially offset by tax deductions. Ask your accountant or tax preparer about those. Will there be appraisal, application, and credit check fees? Will you need all new title insurance? Can you get a credit from your existing title insurance? All of those factors need to be considered to find out your upfront costs.

Even if you ‘roll them in’ to the new mortgage and your monthly payment is reduced, you should understand how many months it will take you to ‘break even’ on the costs of the new loan. It may be 8 or 9 months, or it could be 24 to 27 months. In the first case, if you have to sell in a year, the refi choice was a good one. In the second case, not so good. And things happen.

Perhaps you or your spouse will get a job offer that you can’t refuse and forces you to sell. Maybe a family situation arises that requires you to move. Life can be like that. Here are a couple of references to get you thinking and to help you if a refinance is something that you’ve been considering.

First, a recent (August 2011) article from Forbes. It is pretty short, covers a lot of ground and has a downloadable refinance calculcator in MS Excel format.

Here’s an online article from Bills.com that covers some other thoughts, and a lot of other links – in case you feel like doing a lot more research. If you’d like to just plug in some numbers, try using the calculator I mentioned above in the Forbes article, or try these. One is from bankrate.com and one is from Realtor.com. Both are slightly different, but will help you understand the thoughts on refinancing.

Melon Festival in Howell This Weekend



photo credit: Maggie Smith



OK, it's not exactly the Woodward Dream Cruise. (For those non-Michiganders out there, the Dream Cruise is a huge car party in Detroit's north suburbs. So large that it's actually the world's largest one day automotive event. Click the link for more info)

But the Howell Melon Festival is in its 51st year and is quite a party, all the same. A wide range of events include the Melon Run with both a 1 Mile, a5K and a 10K, and other funs things like melon dash and melon roll and tot trots.

Get a taste of melon ice cream, take a steam locomotive ride, a river boat ride (on Thompson Lake), or perhaps a trolley tour. Try a taste of melon wine, tour the Howell Historical Museum. Add a Fine Art show, sidewalk sales and some interesting activities like a watermelon seed spitting contest, a bubble gum bubble-blowing contest and you’ll find something to do in Howell this weekend. The entire downtown area is the location.

If you’re planning to visit, check the schedule and parking maps first. This is a BIG weekend in Howell, and we want you to have a blast! And if you decide to look for a house in Genoa Township or one of the other nearby areas while you're here, give me a call!

July 2011 Market Data

The July data has just been published by our MultiList System (MLS), RealComp II, Ltd. We’re seeing a continuation of trends from earlier in the year, namely, fewer listings, slightly increased sales numbers and a shorter time on the market.

First, listings. Year To Date (YTD) for 2011, we’re 11% below 2010 levels, with 3041 this year compared to 3404 last year. Short sales listings are down a significant 28% comparing July 2011 to July 2010(252 in 2011 vs. 352 in 2010).

Sales of residential units (detached homes and condominiums) are up 7%, or 237 in 2011 vs. 221 in 2010. Pending sales are also up 23% from last year. July 2011 showed the highest average ($173,608) and median ($153,750) sales prices of the year, and both of those indicators are nominally above 2010’s performance.

The time on market (time it takes a listing to sell) is at average of 114 days for 2011 compared to 121 days for 2010. It may not seem like much, but selling your home a week faster can be important to some people. It also means that buyers need to be motivated and move on their choices quicker.

The ‘hot spots’ for sales in Livingston County continue to be Genoa Township, Hamburg Township, Brighton Township, and Green Oak Township, in that order.

Cash sales are way down so far this year, with only 95 being reported. At the end of July 2010, that figure was 415 – a 77% decrease. Land contracts are a little more popular this year, but at 25 sales with those terms, they are still a very small part of the overall financing picture. Conventional mortgages are still the most popular financing method, followed by FHA loans.

Higher Rate of Buyer ‘Walk Aways’ Reported in June

An article in yesterday’s Los Angeles Times claims that a very high rate of real estate deals fell apart in June. Factors such as economic concerns, financing requirements and lower than expected appraisal values are leading suspects for the increase in failed housing contracts.

I personally haven’t had many transactions fall apart because of low appraisal values, and often sellers will adjust their selling price downward if a second appraisal supports that lower value.

Another factor is the increase in pending short sales, just the type of transaction that is problematic and often takes months to close. Does the increase in short sale homes under contract have a role to play in this statistic? Perhaps, but more likely it’s a combination of all of the above reasons, and perhaps others.

I had a recent transaction that encountered some lender issues, but nothing that couldn’t be solved. It was a purchase agreement on a foreclosure home owned by Fannie Mae. Of course it needed work and the first-time home buyer had to go with an FHA 203K streamline (rehab) loan. While waiting for two weeks for FNMA to agree to concessions for serious issues found only at inspection, our process became delayed. During that time the appraisal was completed and no value issues found.

We asked for a reasonable extension but FNMA wouldn’t agree. It had to be closed by the end of July, which was quite impossible for the lender. A two week extension would have had us closing in mid-August, but the house went back on the market as a ‘failed’ deal.

Why the stubborn tactics by the seller? My guess is that the asset manager gets dinged on her productivity bonus points for cloings that get extended, but not for failed deals. Of course, that’s just my guess, but other agents that have had similar occurrences feel the same way. How many of those go into the monthly totals under the failed deal category? (We have re-submitted the purchase agreement and are trying to get an acceptance at this time.)

For all of the noise about stabilizing neighborhoods and getting owner occupants into these foreclosed homes, sometimes it may just boil down to the personal motives of an asset manager. If our hunch is true, shame on the institutional sellers that impose these restrictions on the people handling the properties. Of course the asset manager is going to do what’s best for them, especially when they never meet a buyer, lender, selling or listing agent or anybody else at the front end of the transaction. Hey bank reformers – here’s a new niche market for you to examine.

Livingston County Sales Figures – January to June - 2010 vs 2011

Single family residences (SFR) sales (detached homes) are down about 10% for the first six months of 2011 as compared to 2010. The bright spot is that both the average and median sales prices are showing nominal increases (3-4% margin), and are selling slightly faster in 2011 than in 2010.

Private sales (non short sale, non bank-owned) are up over 9% from 2010, but the overall decrease quoted above is heavily impacted by an almost 21% DECREASE in bank-owned home sales. The bank-owned sales are also selling for 6-10% less for average and median sales prices compared to 2010 and those that are selling are going about 5-6% faster than last year.

It appears to me that sellers who WANT to sell and have not been under pressure to sell may have tired of waiting for the market to improve. I know that I have had conversations with consumers that have another home, and while they can continue to make payments on both, are deciding to make the move to their next destination. Sometimes it’s for retirement, other times to be closer to family. Those of us that work with banks to sell foreclosed upon properties have definitely recognized that the supply has decreased.

Condo sales seem to be increasing in both average and median sales prices, and they are generally selling faster than last year’s pace, too. There is a 10% increase in bank-owned condo sales, but the short sales are down by over 26%. I’m not sure if that’s a sign of frustration with the short sale process (and it can be VERY frustrating), or if there are more ‘strategic defaults’ in that group of property owners.

The Real Estate market continues to change. If you’re considering either a purchase or a sale, make sure you work with a full-time Real Estate professional that is watching trends and market dynamics.

Livingston County Homes - $100K or Less

I still chuckle when I see marquee signs on Real Estate companies that say things like, “87 homes under $100,000 – Stop In For A List”. I chuckle not because they provide the list, but because the numbers can change by the day, even by the hour. New listings are coming on to the market constantly. Agents can enter new listings into the MLS 24 hours a day. And of course homes that have just gone under contract will fall off the list, too. If you're working from a list prepared two weeks ago - good luck!


But I recognize that it is a popular price range, so I thought I’d do some research as of exactly 06:52 this morning, on Tuesday, July 26, 2011. Here’s what I found.

In Livingston County there are 135 single family residences (SFRs), or detached homes, for sale in this price range. The lowest is $19,500. Located in Unadilla Twp in the southwestern corner of the County, the MLS remarks say it is not habitable and is just a shell. It was built in 1900 and is 1000 sq ft in size on a 100 x 131 ft lot.

There are also 42 condominiums for sale in this economical price range. The lowest priced is in Hidden Harbors on Green Willow St., just off Grand River across from Meijer’s in Brighton, listed at $23,900. They are smaller units in a ‘stacked’ configuration, like an apartment building.

First time home buyers looking at the low end of the housing spectrum should consider a couple of things before they start to look. First, the lower the price, the more likely it is that the house will need significant dollars to repair, even if it you can do it yourself. So when you get pre-approved (I recommend you do this before you ever look at a house), talk to your loan rep about rehab loans. If you qualify for FHA financing, there are FHA rehab programs out there, the 203K and the 203 Streamline.

The likelihood of needing repairs is quite likely and sometimes you can do repairs yourself, other times you must hire a contractor. Be prepared.

Condos are sometimes in better condition because the Condo Owners Association maintains the exterior and grounds, but occasionally there is significant interior work to be done. You also have to find out if the condo community is FHA certified. Your loan rep or Real Estate agent can do that for you. If you have to go FHA financing, there’s no point in looking in communities that aren’t FHA certified.

Investors with cash are definitely the ‘king’ for choices in the low end of the housing spectrum. They are often quite astute with estimating repair costs and they can quickly qualify or disqualify a property for their model of either renting and holding or repairing and selling. When estimating your budget, don’t forget about property taxes, homeowner association fees and maintenance. It’s always good to be able to have six months of rent in reserve for repairs and emergencies, too.

If you’re thinking about a low priced property, work with an experienced agent. I’d be happy to talk to you about your plans and formulate a search just for you.

Condo Sales Stronger

Using data reported by our local multilist service (MLS) for Livingston County Michigan, RealComp II, Ltd. through June 2011, it appears the condo market is strengthening somewhat. 

2011 YTD listings are down slightly (44) from 2010 (46) but sharply from 2009 (63).  Pending sales reported have risen from 36 in '09 to 34 in '10 and 44 YTD in 2011.  There were 21 YTD sales in 2009, 31 in 2010 and 37 YTD for 2011.

The median sales price for Livingston County condominiums for the last thre years is:  2009 - $66,000; 2010 - $86,500 and 2011 - $108,000.

I believe that much of this strengthening is due to consolidation, with almost no new units being built.  Lower end (starter) condos, i.e., built on a slab, no or 1 car garages, 'stacked' configurations are still being listed in the low to mid $50,000 price range. 

When buying a condo, especially a 'starter', be sure to work with a reputable lender and if you are going with FHA financing, get a list of communities that are FHA certified.  Many are not, and some that were approved by FHA have lost that ranking.  Don't find out after you write an offer.

Condo Living At It's Best! - 7493 Radcliffe, Brighton



You'll love life at Lake Edgewood Townhomes. Conveniently located just west of the City of Brighton, the lower Township taxes, reasonable COA fee and convenience to shopping and transportation corridors will all be yours at 7493 Radcliffe in Genoa Township.
Don't let the unassuming front view fool you. Walk in to a vaulted ceiling living room with a floor to ceiling stone fireplace treatment. Enjoy the four season sun room with view backing to woods.  Two bedrooms and two full baths with an ample sized kitchen complete space. First floor laundry facilities are available, although currently located in the walk out basement, which is rough plumbed and studded - ready to finish (blueprints available).

Minor work being completed, call agent for details.

New Listing - 3981 Swarthout, Pinckney, MI 48169

This1850-built farmhouse sits on 2.2 acres, has paved road frontage and gives you that rural feel but is conveniently located close to schools and shopping.  4th, non-conforming bedroom upstairs. Updates include septic tank and water heater, a 1997-built detached 2 car garage with over 600 sq ft of finished space that would be perfect for an office. The HVAC system has been sized to allow for finishing the loft space in the future.

Two horses would be allowed on this property, and there is a 1 acre meadow behind the fenced yard.  Pinckney schools and zip code, Hamburg Township location.  If you've been looking for country living with modern conveniences, this house is for you! MLS# 21107825

Wells Fargo Session

Today I went to a Wells Fargo (WF) Real estate Owned (REO) session in Southfield. There were a few interesting stats that were shared with us.

First, (and no surprise to readers of my blog) is that time on the market has dropped dramatically for WF foreclosure listings. In 2009, the average time on market was 126 days, in 2010 it was 86 days, and so far in 2011 it is 47 days.

WF has only 566 foreclosure homes for sale in Michigan at this time. I thought that was a low number. Part of it may be due to the fact that their loan modifications are up, and over 80% of loan mods are classified as ‘non-HAMP’. HAMP = Home Affordable Modification Program, run by the U.S. Department of Treasury. It is the program that’s been getting bad press for low success rate in helping consumers. Hmm, high number of non-HAMP loan mods and lower foreclosure inventory. Compare that to some other banks’ figures.

Wells Fargo sells its own foreclosures, but acts as a servicer for other investment groups, too. In fact, over 70% of properties they handle are loans from other grouops.

I am impressed by their willingness to do things to make homes more marketable, even when it doesn’t get them more money. They seem to have a genuine interest in getting owner-occupants (not investors) into their properties and in helping to re-stabilize neighborhoods.

Wells Fargo and their Premiere Asset Services division won big last month at HousingWire’s awards for Real Estate management firms and corporate Real Estate departments. It was the second year of the awards.

Livingston Median Sales Prices Up!

The June 2011 statistics from RealComp II,Ltd., our local multilist system (MLS) are available.

The glaring statistic I see is that Livingston County is faring a bit better than the Metro Detroit tri-county area. Detroit, Oakland and Macomb County aggregate figures indicate a 13.3% median sales price drop, but Livingston had an increase of 5.4%.

Also, Livingston County homes are selling faster. A full 68% of homes that sold actually closed within 90 days, and almost 76% closed within 120 days. Condos reported similar time frames at 67.5% for 90 day closings and 81% for 120 day closings.

The sheer numbers of listings have dropped dramatically, too. With less inventory, buyers are being more aggressive when they find a property they like. Let’s look at condominiums, which typically have a higher inventory to sales ration that detached single family homes.

In June 2009, there were 321 units available with 21 sales (6.5%). In 2010, that figure increased to 31 sales with a significantly lower inventory of 179 units available (17.3%). This June, there were 128 units available and 37 sales, for 28.9% of inventory selling.

Of course condo living doesn’t suit everybody’s life style, but for those that are a good match, they are a great option. Not sure if you’re right for condo living? Give me a call to discuss the pros and cons. Even if you are a good match for a condo, you may not be right for a certain community. My 13 years of experience in Livingston County can help you focus your search to a community that is a great match for you.

Mortgage Fraud Still Happens

Unfortunately, mortgage fraud is not a thing of the past. It still occurs, although ethical lenders are going to great pains to make sure they’re not participating in the problem.

Inman News, a Real Estate industry news source, today reported the top 20 Metro areas for Mortgage Fraud activity. There was a 31% increase in reported cases during the first quarter of 2011 as compared to the same period in 2010, although the release did specify that many reports were on loans originated years ago.

It also states that 6 of the 10 top metro areas identified are in California, and that the majority of reports revolve around loans from 2006 and 2007. Many of the cases involved misrepresentation of purchaser income and instances of property ‘flopping’. Flopping is the practice of selling a home (usually a short sale property) at less than market price (most often to a ‘friendly’ party), who then re-sells it at the actual market value for profits that have ranged from 15%-300%.

Lenders and the Financial Crimes Enforcement Network (FinCEN-a division of the U.S. Department of Treasury) are conducting reviews on poorly performing loans. A listing of the top 20 areas for mortgage fraud in the report are listed below:

Top 20 metros for mortgage fraud

1. San Jose-Sunnyvale-Santa Clara, Calif.

2. San Francisco-Oakland-Fremont, Calif.

3. Lost Angeles-Long Beach-Santa Ana, Calif.

4. Riverside-San Bernardino-Ontario, Calif.

5. Sacramento-Arden-Arcade-Roseville, Calif.

6. Miami-Fort Lauderdale-Pompano Beach, Fla.

7. San Diego-Carlsbad-San Marcos, Calif.

8. Las Vegas-Paradise, Nev.

9. Atlanta-Sandy Springs-Marietta, Ga.

10. Salt Lake City, Utah

11. Chicago-Naperville-Joliet, Ill.

12. Washington, D.C.-Arlington-Alexandria, Va.-Md.-W.Va.

13. Tampa-St. Petersburg-Clearwater, Fla.

14. New York-Northern N.J.-Long Island, N.Y.-N.J.-Pa.

15. Orlando-Kissimmee, Fla.

16. St. Louis, Mo.-Ill.

17. Seattle-Tacoma-Bellevue, Wash.

18. Phoenix-Mesa-Scottsdale, Ariz.

19. Richmond, Va.

20. Denver-Aurora-Broomfield, Colo.

Lower Priced Homes Predicted To Drop Value Faster

A new study says that lower priced homes will have steeper price drops than their higher priced counterparts, according to a report by DSNews.com.

Already discounted heavily, many of these lower end properties are ‘distressed’. Before the housing market tanked, this market was robust due to the proliferation of subprime and ‘teaser’ mortgages and lower down payments. With the tightening of credit conditions and lending requirements, this market has been hit harder than the higher priced homes that are generally dominated by repeat buyers.

But the higher priced homes face valuation drops, too. The analysis was prepared by Capital Economics, a macro economics consultant that provides international and property research. Their methodology used existing Standard & Poors Case-Schiller data that was weighted for 16 major cities and then created a national housing model. Their reports are available only on a subscription basis.

Feel free to call or email me if you have questions about the local Real Estate market. Get quick updates on my new blog postings by visiting and 'liking' my facebook page.

Ranch Homes For Sale in Howell



 Some home buyers have very specific requirements. Perhaps it’s a large kitchen, or a finished basement. Sometimes it’s acreage with a pole barn, occasionally it must have an in-ground swimming pool. One of the most often heard requirements is for architecture type, and it seems that ranch style is at the top of the list.


Of the 270 of homes for sale in the Howell School District right now, there are 90 ranches and only 12 are bank-owned (foreclosures). They range from a 1969-built manufactured home on deeded land (in Woodland Lake Estates) listed at $9,000 to a $1.8 million home on 204 acres in Cohoctah Township.

The low end home is bank-owned, on a small lot, has two bedrooms and two full baths and is 552 sq ft in size. It is not mentioned in the listing, but this subdivision has two Woodland Lake access parks for the residents. Woodland Lake is a large, all-sports lake and also has a Public DNR launch off Hilton Rd.

The high end house was built in 1940, is three bedroom, two bath and 1770 sq ft. The 204 acre parcel has a 5 acre private lake, and there has been engineering done to develop the land if the buyer wishes to pursue that avenue. It’s currently a farm with “excellent hunting” as an MLS (multi-list service) remark. It is also available for financing, land contract or cash terms.

There are 88 other ranch homes available in the Howell School District. If you, or somebody you know is looking for one, give me a call.

Brighton Michigan – 35 Homes For $100 Thousand or Less



Affordable Homes Available

 Right now, there are twenty three detached single family homes and twelve condos for sale in this price range. This search is for the Brighton School District, so while some properties fall within city limits, many are in the surrounding townships. Ten of the thirty five units are bank-owned (foreclosures) and another eleven are short sales (selling for less than what is owed and the bank will need to approve the sale).


Five of the units are in a senior (55+ years old) co-op. The co-op units are small (950-1005 sq ft) two bedroom, one and a half bath each and three of the four are priced at $23,900-$42,900.

Four of the thirty five are price reductions and two are expired listings just returned to the market. There are seven new listings in this group, and three of them are condo units in the 1400-1600 sq ft size range, built in 2004. It appears they were purchased by an investor in 2007 and are now offered under short sale terms. These are at the high end of the list at $99,900. When built, these units were going for $160,000 to $190,000.

If you know somebody that is looking for a home on a budget, have them contact me. Brighton is only one of the market areas in which I have experience and expertise. There are still affordable housing programs available and interest rates remain very attractive. There may never be a better time to buy in any price range.

(data source-Realcomp II, Ltd. MLS)

Michigan Challenge Balloon Fest-Howell

There's still time to get in on the fun!  The Michigan Challenge is happening today and tomorrow at the Howell High School complex, 1200 W. Grand River, Howell, MI 48843.  Balloon launches, arts festival, a carnival and a lot of family fun.  Please check the web site for best parking options. This is a Howell Area Chamber of Commerce event.

Local News Sources in Livingston County

It amazes me how many people don't read the newspaper, or who don't seem to care. I guess we're so used to talk radio and sound bites on the networks and from the big media outlets that it's just 'too easy' to forget about other sources.

We are fortunate in our area to have a great local paper, The Livingston County Daily Press & Argus. Published every day except Saturday, they have wonderful local coverage. They're a Gannett Paper, so if you also subscribe to the Detroit Free Press, you'll occasionally see a duplicated Editorial or top Detroit area news story. I like reading the local City and Township Meeting minutes or synopses to keep up what's happening - often before it makes the big 'news'. They also have a very robust online edition at http://www.livingstondaily.com/, although the reader comments often strike me as either immature or 'having an axe to grind'. Such is life in a Democracy, however, and it's good to have such venues available.

A strictly online news source is the newer LivingstonTalk.com. Started by two long-time County journalists laid off from the Press & Argus, this outlet is gaining traction. Geared more towards features and local events, they do have a news feed from the local radio station (WHMI-FM) as well as from CNN, but they emphasize community news. Their tagline is "100% Locally Owned & Independent" and I've become an avid reader/visitor of the site. If you haven't visited them, yet, do so. I think you'll be pleasantly surprised.

And speaking of radio, WHMI 93.5 FM is a locally owned and operated station-not part of a large syndicate. The music programming is largely what you'd call 'hits' and classic rock, but they do a great job with local news reports, too. Weekend programming is a bit more varied. Their web site is really quite extensive in regards to local, Michigan and national news reports and they have a fantastic community events calendar, too. Their front page is pretty much a snapshot of anything you'd want to know about in Livingston County or for topical news.

And don't forget about your local City or Township web sites. Some are quite elaborate and contain past meeting agendas and minutes, agendas for upcoming meetings, etc. The City of Brighton website, for example, has meetings of all municipal Boards, including the DDA, Arts and Culture, Zoning Board of Appeals, and more. I know that few of us have the time to regularly attend such meetings and local Cable doesn't do a great job of coverage, but you can read the reports published in your paper or on the government web sites.

The Yin and Yang of Livingston County Home Sales

Through the end of May 2011, there have been 2,150 sales in Livingston County. The median sale price is $133,200 and the average sales price is $151,277, as reported by our Multi List System (MLS), Realcomp II, Ltd.

The highest price sale (reported as of today) in the MLS is a 2006-built 4138 sq ft waterfront home in the Hidden Lake Estates community of Green Oak Township. Four bedrooms, four and a half baths, in home theatre, and of course a private dock all come as part of the package. This home was listed at $899,900 and sold for $850,000 with a conventional mortgage on March 31, 2011 after just 39 days on the market. That’s 94.5% of listing price, not bad at all.

The lowest price home sale (excluding a couple of manufactured homes on deeded land and one home that sold for $6,000 and listed as “value in the land”) was listed for $14,900 and sold for $12,200 in 98 days. It was a 1940-built 639 sq ft, 2 bedroom, 1 bath bank-owned home with access to Whitmore Lake. It sold for cash on February 24, 2011 at 81.9% of listing price.

When I look back to 2005, the highest home sale list-sale price ratio was still 94.5%, although the list and sale prices were definitely higher. And there were more of them. In the $500,000 and up range for all of Livingston County through the end of May, we had 36 sales in 2005 compared to the 9 sales in that same price range this year.

Wikipedia says that, “Yin yang are complementary opposites that interact within a greater whole, as part of a dynamic system.” It is also a dominant concept of Feng Shui, something at least familiar to most Real Estate industry workers. It’s really about balance, not ‘left’ or ‘right’, or ‘right’ or ‘wrong’. Regardless of the housing market being up or down, we certainly have opposites within a larger, dynamic system. Personally, I’d love a little more balance.

Livingston County Market Stats – Through May 2011

Using data from our Multiple Listing Service (MLS), Realcomp II, Ltd., we are seeing a continuation of the existing trend of lower inventory and shorter time on the market.

Through May, and comparing years 2009, 2010 and 2011, inventory has gone from a year to date (YTD) figure of 2840 in 2009 to 2455 in 2010 and the current 2150 for 2011. That’s a drop of just over 24% in the last two years.

Both the total number of residential sales and the total sales volume (price of all sales combined) is lower in 2011 vs. 2010, almost 9% lower for number of sales and 6.5% lower in sales volume, but the average sales price is up about 2% for 2011 and the median sales price is just slightly up over 2010 as well. That's likely an indication of higher overall prices on a per sales basis.

Days on the market continue their decline, too. In 2009 it was taking an average of 135.2 days to sell homes. That dropped to 125.6 days in 2010 and this year it’s at 119.2 days. That represents a home selling about two weeks faster than just two years ago.

For buyers seeking a home for $100,000 or less, the news is not good at all. In 2010 (through the end of May), there had been 330 homes sold in this price range. In 2011, there had been 284, an almost 14% drop. Part of this is due to lower inventory, but some of it is also due to the fact that lower priced homes tend to get multiple offers and may be bid up and over that $100,000 price mark. That’s another reason for buyers to be ready to move quickly when they find the right house.

If you're going to be looking for a house soon, work with somebody that understands the dynamics of today's market and can help you create a winning plan.  My success rate with buyers is very good.

Our Real Estate Market Summary-June 2011

Locally, there is still a lower inventory, especially in homes under $180,000. The best homes (best condition at the best prices) go very fast. TIP: Get daily listings from your agent, drive by interesting properties quickly, and have your agent get you inside as soon as possible. If you like it, write an offer immediately or risk ending up in multiple offer situations or losing it before you have a chance to bid.


Interest rates remain attractive, but some lender programs are being modified to require either a larger down payment or larger ‘up front’ fees to go with 100% financing programs. Appraisals are also uncovering more issues with homes for sale and once a loan goes to the final underwriting process, it is not uncommon for even more issues to be raised. Lower income buyers in Livingston County gravitate towards the USDA Rural Development loans if they qualify, based on income. TIP: Work with a good lender to determine the very best loan instrument for you, provide them with everything they need to give you a firm pre-approval. This will prevent unpleasant surprises once you find that perfect house.

You can see that this advice is heavy on both the time and service issues. Do EVERYTHING that you can do to position yourself to move quickly in this market. I have no magical crystal ball, but while prices seem to be still trickling downwards, many are saying that the glass is half full – and getting fuller by the week. If that’s true, this is the time to buy. TIP: Work with industry professionals that are responsive to your needs and those that will have time for you. Part of that is being committed enough to the process to warrant their time commitment to you. Select one Real Estate agent to work with, and one lender, too. Get them the info they need to do the best job for YOU.

Brighton Optimist Golf Outing

The Brighton Optimist Club will have its annual Charity Golf Outing on Saturday, July 16, 2011 at the Jackal Golf Club in Brighton, MI at 11am.

The Brighton Optimists have given tens of thousands of dollars in scholarships to local students over their 34 years, and have spearheaded such large community projects as Brighton’s Imagination Station playground and what is now called the Meijer SELCRA skate park. At this year’s Free Fishing Derby for Kids (Brighton Millpond, June 11th) they are donating a youth-oriented piece of artwork to the City of Brighton, which will be on year-round display.

Golf fees are $85/golfer and include all course fees, a lunch, steak dinner and door prizes. There will be raffles, a chance to win a car at the hole in one station, a Vegas Hole, Beat The Pro driving contest and more. Foursomes that register and pay together online get a discount.

There are opportunities to donate raffle prizes, and hole sponsorships are available for $110 each. Executive Hole sponsorships are available for $380 and include the holes sponsorship and golf for four. What a great deal!

Details and registration are available at:

http://www.golfdigestplanner.com/18882-optimists/index.html

Best Methods To Get The House You Want

Here is a quick outline that will help you become a successful home buyer. There may be other things that would help and other agents may have different strategies. These work well in my experience and specifically in today’s market.

Be Pre-approved. Not pre-qualified. Get your credit score pulled by a lender, supply them with all of the documentation they request and get a firm pre-approval. Talk to them about refreshing it if you don’t find a house within 45-60 days and how these subsequent pulls may or may not affect your credit rating, too. It’s alright (even preferred) to interview a few lenders before you sign on the dotted line. Like the commercial says, “Just Do It!” if you’re serious about buying a home. Note: If you’re primarily interested in foreclosures and the property will be your principal home, talk to the lender about rehab loans. Many foreclosures are not financeable in their current condition and will require either a cash offer or a rehabilitation loan.

 Commit to a Realtor. Again, interview a few. Realize that not many will invest a lot of time into you if you’re not pre-approved and serious. Once you commit, stick with them and be open if there are things you don’t like. Sometimes it will be their way of doing business, other times it will be the market dynamics and you’d experience with any agent.

 Get daily listing reports. New listings, listings that have dropped into your price range, houses back on the market. The good ones are going fast and you need to be ready to roll.

 Drive by the interesting ones within 24 hours. Don’t wait or you may get shut out or put yourself in a multiple offer situation. Be sure your agent will have time to get you into homes within 24 hours of your request.

 Don’t be afraid to pull the trigger. Once you see a home you’re interested in, write the offer. If you’re in the lower price ranges (under $200,000), you will possibly be only one of multiple offers. Being pre-approved gives you a step up over casual buyers. Write that offer fast.

 Don’t lowball. If it’s a total dump, that’s one thing, but if it’s habitable, write a realistic offer. After you’ve seen a number of properties you’ll have an idea of a fair price for the house and its condition. Lowball it and you’ll open the door for a competing offer.

 Be prepared to get pre-approved by a lender chosen by a bank if it’s a foreclosure. That’s not uncommon. You don’t have to use them for the loan, but they want to make sure you’re able to perform financially. This can take from a few hours to a couple of days.

 Have an inspector chosen. One way to make your offer more appealing is to stipulate a shorter inspection period, say 5 days from date of seller acceptance. Ten to fourteen days sounds a lot more like you’re playing games to a seller –especially if it’s a bank-owned property. Discuss with your agent the typical inspections for the area. Home, sure. Well and septic, maybe. Radon, perhaps. There could be others.

 Make a ‘real’ earnest money deposit. Don’t do the $500 gambit. Put down a minimum of $1,000. I recommend that you put down 2-3% of the offer price. If the offer doesn’t fly, you’ll get it back. If the inspection is bad, you’ll get it back. If all is well, that money is applied to your down payment and closing costs.

 

The key is to fill in as many blanks as possible before you even look at the first house. Put yourself in position to move quickly and definitively. It will reduce stress and let you focus more on making good decisions. If you’re looking for homes in my market areas, feel free to contact me for a no obligation discussion.

 

Brighton Optimist Free Fishing Derby For Kids, June 11, 2011

The Brighton Optimist Club has been around for 34 years. For the last 25 years, they've conducted a free fishing derby for the area youth, aged 16 and under. It started with some Optimists, some kids and some worms. From its humble beginning with about 30 participants, it's grown to a 300-400 kid event.

The entire event is free and includes souvenir photo mock fishing licenses, bait, age group trophies, door prizes, entertainment and food. The really little ones get to try their luck at the L'il Angler booth where a clip on the end of a fishing line is dropped over a partition and they 'catch' a goodie bag full of things. The Optimists even have a large display tank where some fish swim for a few hours during the event. Big ones, little ones that are especially well colored, even the occasional turtle might find its way into the tank. They are all released at the end.

There are even some loaner rod and reels outfits available, a casting contest, and some new outside activities, too. The Howell Conference and Nature Center will be there with some raptors, Kensington Metropark's Nature Center will be on site, as will Heavner Canoe and a visit by the Brighton Area Fire Department. A block or so away, the Brighton Farmer's market will be in high gear, too.

This year the club has commissioned a children-themed work of art that ties into the Fishing Derby, and have donated it to the City of Brighton. It's been named "It's A Keeper" and it will be a year round outdoor display at the millpond, near the Imagination Station playground (which might not have been created without the Optimists' efforts). It will be installed before this year's event, but the official dedication will take place around awards time, 11:00-11:30 AM. The artist is local, Mike Monroe, and he will be present as well as City dignitaries. It should be a great day.

Average Down Payments Reported; Rents Are Increasing

The National Association of Realtors (NAR) recently released a number of economic reports. One summarized the average down payments provided by home buyers for different parts of the country. (We’re in the East South Central, along with WI, IL, IN and OH.) Our area works out to be in the 5% zone (lowest in the country), but the figures vary greatly and the national average is 8% down payment. Middle Atlantic States (NY, PA, NJ) led the crowd with an average 12% down payment amount.

I know from working with local lenders that even the ‘affordable’ housing purchase programs are now requiring some form of down payment or increasing the percentage needed to purchase. 100% financing may be on the way out, and that is probably a good thing.

Another recent report highlights the fact that nationwide rents are increasing. The report does not specify amounts, but merely indicates that monthly rentals are getting more expensive. With the foreclosures that are still occurring, this is not a surprise. Those folks will have a short term reality of renting for the most part.

Livingston County Market Report - Through April 2011

In reviewing the year to date (YTD) stats through April 2009-2011, we are facing lower prices, shrinking inventory and quicker sales.  First the raw data.

Listings went from 2,269 (YTD) in 2009, to 2,012 in 2010, and now for 2011 we're at 1,647. That means this year's listings are down 18% from last year and own over 27% from year 2009.

Sales (YTD) were at 599 in 2009, jumped to 771 (a 28+% increase) in 2010, but we're at 679 for 2011. That represents an almost 12% decrease for 2011 vs. the 2010 data. The fact that we're seeing more sales in 2011 than in 2009, even though there are fewer listings could be interpreted to mean that there are more properly priced distressed listings on the market, or it may signal a pent up demand on the part of buyers.

Personally, I believe that motivated buyers who have seen enough properties are deciding to not play games with extensive offer-counter offer-counter counter offer situations because they've been beaten by other incoming multiple offers before they get get a house under contract.  Also, in the under $80,000 range the investors are coming in with (mostly) very realistic cash offers. Their money is making pennies in other investments and the time to buy is now, especiall with a fairly robust rental market.

Our Multi List System (MLS) report says that residential units available (again, YTD) have declined from 2283 in 2009 to 1387 in 2011. That's a 39% difference.  At the same time the Days on Market (DOM) went from 141.5 in 2009 to 119.8 in 2011, a 15% decline.  So an almost 40% decline in units available with a 15% shortening of the time on the market means that a lot of buyers are getting beat out before they ever decide to write an offer. With new construction a shadow of its former self, buyers in large part HAVE TO go with existing homes.

If you're a buyer that is not yet committed to working with a Realtor, feel free to call me for a short confidential interview and evaluation of the housing market dynamics and homes in your price range. Unless you have a lot of questions, we should be able to meet and go through that data in less than 35 minutes.

New Listing - 10390 Nine Mile, Whitmore Lake MI 48189

Sold "as is", seller will not make any repairs. Not financeable in current condition. This bank owned home is 1104 sq ft, 2 bedrooms, 1 bath, and on a crawl space. Private gravel roads, access to Whitmore Lake via community lake lot. HOA dues are $200/year. Investor offers cannot be submitted until May 23rd.  $49,000.