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.
Wednesday, June 29, 2011
Tuesday, June 28, 2011
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.
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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.
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.
Monday, June 27, 2011
Ranch Homes For Sale in Howell
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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.
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.
Saturday, June 25, 2011
Brighton Michigan – 35 Homes For $100 Thousand or Less
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)
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| Affordable Homes Available |
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.
Friday, June 24, 2011
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.
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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.
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.
Thursday, June 23, 2011
The Yin and Yang of Livingston County Home Sales
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.
Wednesday, June 22, 2011
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.
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.
Thursday, June 02, 2011
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
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
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.
Thursday, May 26, 2011
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.
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.
Wednesday, May 25, 2011
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.
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.
Thursday, May 19, 2011
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.
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.
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.
Wednesday, May 11, 2011
New Listing - 10390 Nine Mile, Whitmore Lake MI 48189
Wednesday, April 27, 2011
Saturday, April 23, 2011
Strategic Defaulters - FICO Has Your Number
Strategic default is generally accepted to mean default by a consumer that still has the ability to make payments. Often these folks are value-keyed, figuring that if they walk away from a home that isn't worth what they owe, perhaps they can also pick up another home at a cheaper price before the default impacts their credit.
If you are not facing an economic hardship, you will not be eligible for a short sale, which is the route many distressed homeowners first explore. Since those considering a strategic default are not in a 'distressed' condition (other than overthinking the value of their homes against current market prices), strategic default often seems like a good idea to them.
This 'profiling' could help servicers to reach those considering strategic default before they make that final decision. The analytics developed by FICO Labs indicate that the riskiest 20 percent of borrowers actually comprised 67 percent of consumers who later executed a strategic default. To me, that's an amazing number.
In this report from DSNews.com, Dr. Andrew Jennings, chief analytics officer at the Minneapolis-based FICO and head of FICO Labs said, "Strategic defaults are bad for lenders and investors, they're bad for the homeowners who elect to default and they're bad for neighborhoods and cities. Preventing them is in the interests of everyone involved."
You can read the entire article at DSNews.com by using this link.
Friday, April 22, 2011
Great Livingston County Deals - Part II
The last 'deals' post seems to be getting a fair amount of traffic, so I thought I'd follow up with more - this time for a Wednesday.
In Brighton, try Stout Irish Pub on Grand River. It's $3.50 burger day all day, and these are good burgers. Happy Hour is pretty good all week long, too. Nice selection of draft beers, big screen TV's for the sports fans and a nice setting. Sign up for their customer loyalty card (regulars call it the 'green card') and build credits for future nights out. There's a municipal parking lot right behind the place, but it's sometimes pretty crowded. You may have better luck parking on East Main St.
Still in Brighton, but down Main St at the corner of First is StoneFire Bistro. Their Happy Hour features $2 pint draft beers and $3 glasses of house wines. Those are very good prices, although I would forgoe the bud and bud light for a more upscale draft beer. Heck, they're ALL $2/pint on Wednesday. Get the good stuff! Stick around towards the evening and it's Rib Night at StoneFire.
Have a favorite Wednesday deal to share? Post it as a comment.
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| Hump Day Strikes Again! |
'Hump' day is the best 'deal' day out there - middle of the week, slow for taverns and restaurants - and these are just two that popped into my head. We all need a little relaxation in the middle of a busy week, don't we?
Still in Brighton, but down Main St at the corner of First is StoneFire Bistro. Their Happy Hour features $2 pint draft beers and $3 glasses of house wines. Those are very good prices, although I would forgoe the bud and bud light for a more upscale draft beer. Heck, they're ALL $2/pint on Wednesday. Get the good stuff! Stick around towards the evening and it's Rib Night at StoneFire.
Have a favorite Wednesday deal to share? Post it as a comment.
Thursday, April 21, 2011
Two Livingston County Cities Get Tree City Designation for 2010
The Arbor Day Foundation recently released its list of 2010 Tree City Awards. Howell, Michigan was named a Tree City for the 23rd straight year, and Brighton, Michigan received that honor for the ninth year in a row. Congratulations Howell and Brighton!
Four standards must be attained to achieve this recognition, which is open to communities of any size. There must be a Tree Board or Department, a tree care ordinance, an Arbor Day observance and proclamation, and a community forestry program with an annual budget of at least $2 per capita.
The Tree City USA program is sponsored by the Arbor Day Foundation and is run in cooperation with the USDA Forest Service and the National Association of State Foresters. National Arbor Day is celebrated on the last Friday of April, this year that's April 29th.
For a complete list of Michigan municipalities that won this award, visit the Michigan DNR website.
Four standards must be attained to achieve this recognition, which is open to communities of any size. There must be a Tree Board or Department, a tree care ordinance, an Arbor Day observance and proclamation, and a community forestry program with an annual budget of at least $2 per capita.
The Tree City USA program is sponsored by the Arbor Day Foundation and is run in cooperation with the USDA Forest Service and the National Association of State Foresters. National Arbor Day is celebrated on the last Friday of April, this year that's April 29th.
For a complete list of Michigan municipalities that won this award, visit the Michigan DNR website.
Monday, April 18, 2011
Great Livingston County Deals
I've been pretty much just posting that dull, dry Real Estate stuff lately, so I though that it would be nice to 'change it up' a bit. Here's the first in a series of posts about some great restaurants and watering holes in Livingston County. (Disclaimer: information is true at the time of the posting, may not last forever. What does?)
Since today is Monday, I'll start with a couple of Monday deals. If you're in Brighton, it's hard to beat the Monday half off burgers at BoomTown Kitchen + Tap. Great burgers (just like the rest of the menu), very good value. Monday is also half off Michigan microbrew day at the BTK. They have a great selection of Michigan microbrews and most pints will be just $2.50 each. The larger sized Michigan microbrews (22 oz.) are also half priced on Mondays. The burger deal is all day, the microbrew discount is Happy Hour only (3-6pm). Remember, microbrews are a little stronger than the average beer, so don't overindulge or have a designated driver.
Up in the Howell area, Los Tres Amigos, at 4184 East Grand River near Latson Rd, has $1 taco day on Mondays. Dine in or carry out, doesn't matter. Hard shelled beef tacos are a buck each. And they're really good! Domestic drafts are also $1 each on Monday, so sit in the bar, order a couple of tacos with a beer, then order a few more tacos to take home to the family. Or bring them along and make a family outing of it. If you're in the mood for a Margarita, it's only $2.50 on Monday and Tuesday.
Have another great area Monday deal? Pass it along in the form of a comment. We'd love to be in the know.
Since today is Monday, I'll start with a couple of Monday deals. If you're in Brighton, it's hard to beat the Monday half off burgers at BoomTown Kitchen + Tap. Great burgers (just like the rest of the menu), very good value. Monday is also half off Michigan microbrew day at the BTK. They have a great selection of Michigan microbrews and most pints will be just $2.50 each. The larger sized Michigan microbrews (22 oz.) are also half priced on Mondays. The burger deal is all day, the microbrew discount is Happy Hour only (3-6pm). Remember, microbrews are a little stronger than the average beer, so don't overindulge or have a designated driver.
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| photo-Bob Smith |
Have another great area Monday deal? Pass it along in the form of a comment. We'd love to be in the know.
Sunday, April 17, 2011
HOME SALES INCREASE PREDICTED
This past week, Freddie Mac predicted that 2011 will see a 5% increase in home sales over 2010 in its April U.S. Economic Housing Market Outlook. Wrapped within prose about spring arriving and cherry blossoms blooming, the basis for this optimistic forecast is the fact that unemployment declined for the 4th straight month, and that real estate employment was up 10,000 jobs since November 2010.
Housing starts, which had a very small increase in 2010 levels when compared to 2009, are predicted to slowly gain ground throughout 2011, with a larger jump in 2012.
Buyers opting for a 15 year mortgage vs. a 30 year mortgage are able to save about 0.75% on their interest rate, according to bankrate.com, but most homebuyers still opt for the longer 30 year instrument.
A homebuyer with a $165,000 mortgage and a 30 yr. term at 4.85% will make total payments of $313,448.95 over the life of the loan. The same mortgage amount with a 15 year term and an interest rate of 4.10% will pay a total of $221,178.62, a savings of over $110,000. Both presume no additional payments and all payments made on time.
It remains to be seen whether this forecast will pan out, but in my market much tighter lender requirements combined with lower appraisal values and more underwriting requirements are making it tough for many first-time homebuyers to successfully get through the home buying process.
Housing starts, which had a very small increase in 2010 levels when compared to 2009, are predicted to slowly gain ground throughout 2011, with a larger jump in 2012.
Buyers opting for a 15 year mortgage vs. a 30 year mortgage are able to save about 0.75% on their interest rate, according to bankrate.com, but most homebuyers still opt for the longer 30 year instrument.
A homebuyer with a $165,000 mortgage and a 30 yr. term at 4.85% will make total payments of $313,448.95 over the life of the loan. The same mortgage amount with a 15 year term and an interest rate of 4.10% will pay a total of $221,178.62, a savings of over $110,000. Both presume no additional payments and all payments made on time.
It remains to be seen whether this forecast will pan out, but in my market much tighter lender requirements combined with lower appraisal values and more underwriting requirements are making it tough for many first-time homebuyers to successfully get through the home buying process.
Friday, April 15, 2011
Quicker Lender Response To Short Sales Near?
Reps. Tom Rooney (R-Florida) and Robert Andrews (D-New Jersey) have introduced a bill that would give lenders a 45 day deadline in which to render a decision on a short sale offer, according to an article published today by DS News. The National Association of Realtors (NAR) is supporting this effort.
Nationally, short sales account for 13% of recent home sales. The Prompt Decision for Qualification for Short Sale Act of 2011 still has not been referred to a committee. Hopefully that will happen promptly (pun intended) since short sales are often the brightest ray of hope to homeowners that are facing foreclosure.
DS News is a source of breaking news and up-to-date information for the default servicing professional.
You can read the entire article here.
Nationally, short sales account for 13% of recent home sales. The Prompt Decision for Qualification for Short Sale Act of 2011 still has not been referred to a committee. Hopefully that will happen promptly (pun intended) since short sales are often the brightest ray of hope to homeowners that are facing foreclosure.
DS News is a source of breaking news and up-to-date information for the default servicing professional.
You can read the entire article here.
Saturday, April 09, 2011
Livingston County Realtors To Conduct Food Drive - May 7th!
On Saturday, May 7, 2011, the Livingston County Association of Realtors will again have a food drive for Gleaners Community Food Bank. In 2010 we hit 39,000 meals collected! Our goal this year is 40,000 meals.
Drop off points include the Brighton Millpond and the Howell Gazebo, next to the Historic County Courthouse. In Brighton, you can pull up on Main Street and volunteers will be there to take your food item donations between 9am and 2pm.
Suggested items are canned meals, PB&J, macaroni & cheese, cereal, spaghetti and meat sauce, toiletries and laundry detergent. No products in glass containers, please.
You can also make monetary donations. With the food bank's buying power, $1 can actually provide 3 meals! It always makes ME feel better to donate food items, but money feeds more people.
Most local Real Estate offices will be collection points, and on the day of the food drive many local grocery stores will have volunteers stationed to take donations, too.
If you can't make it on the 7th, consider dropping off donations at my office at anytime before that date, or call me. I may be able to swing by between appointments and pick it up. Preview Properties and I will be happy to get the food to the drive for you.
Drop off points include the Brighton Millpond and the Howell Gazebo, next to the Historic County Courthouse. In Brighton, you can pull up on Main Street and volunteers will be there to take your food item donations between 9am and 2pm.
Suggested items are canned meals, PB&J, macaroni & cheese, cereal, spaghetti and meat sauce, toiletries and laundry detergent. No products in glass containers, please.
You can also make monetary donations. With the food bank's buying power, $1 can actually provide 3 meals! It always makes ME feel better to donate food items, but money feeds more people.
Most local Real Estate offices will be collection points, and on the day of the food drive many local grocery stores will have volunteers stationed to take donations, too.
If you can't make it on the 7th, consider dropping off donations at my office at anytime before that date, or call me. I may be able to swing by between appointments and pick it up. Preview Properties and I will be happy to get the food to the drive for you.
Friday, April 08, 2011
Selling You Home In Today's Market - Free Seminar
How do you find a buyer for your home? Can you no longer afford to make your monthly mortgage payments? Do you owe more on your mortgage than your house is worth?
Have you received a notice of default on your home?
This seminar is free and open to the public. We'll discuss the issues above and answer any you have regarding the current local residential real estate market.
Feel free to invite your friends to this event. Call or email me for reservations.
Hope to see you there!
Wednesday, March 30, 2011
Existing Homes A Better Value?
Good credit scores + savings for a down payment + job security = consumers that can afford to build a new home. But tighter lending guidelines are impacting even that group. Government data suggests that a new home used to cost about 15% more than a resale home, but the difference now may be closer to 48%.
Blame a weak housing market, where existing homes are more affordable than they have been in a long, long time. Add in the foreclosures that lower prices even further, and the short sales that often see homes selling for as much as 10%-15% under market value.
On top of that, the prices of new homes have risen about 6% nationally, although prices vary quite a bit from one part of the country to another. Many of the smaller homebuilders are literally out of work, and some have lost their tradesmen to areas where work is more readily available. On top of that, the price of materials keeps increasing, too.
New homes represent a small portion of total home sales, even in a ‘good’ market. But they do add jobs not only for construction, but to the real estate, lending and home services and products areas. Think of all the new appliances, furniture and furnishings that often go along with a new home purchase.
The National Association of Realtors (NAR) February Report on Existing Home Sales (released March 21, 2011) indicates that cash sales reached a record of 33% of sales in February 2011, with 19% of sales attributed to investors. While this may seem ‘unfair’ to potential homebuyers, the investors actually help by purchasing properties that are often not financeable (they need too many or major repairs), and by repairing damaged homes they are helping neighborhoods to retain value. It’s amazing what a couple of run-down houses can do to a neighborhood.
Blame a weak housing market, where existing homes are more affordable than they have been in a long, long time. Add in the foreclosures that lower prices even further, and the short sales that often see homes selling for as much as 10%-15% under market value.
On top of that, the prices of new homes have risen about 6% nationally, although prices vary quite a bit from one part of the country to another. Many of the smaller homebuilders are literally out of work, and some have lost their tradesmen to areas where work is more readily available. On top of that, the price of materials keeps increasing, too.
New homes represent a small portion of total home sales, even in a ‘good’ market. But they do add jobs not only for construction, but to the real estate, lending and home services and products areas. Think of all the new appliances, furniture and furnishings that often go along with a new home purchase.
The National Association of Realtors (NAR) February Report on Existing Home Sales (released March 21, 2011) indicates that cash sales reached a record of 33% of sales in February 2011, with 19% of sales attributed to investors. While this may seem ‘unfair’ to potential homebuyers, the investors actually help by purchasing properties that are often not financeable (they need too many or major repairs), and by repairing damaged homes they are helping neighborhoods to retain value. It’s amazing what a couple of run-down houses can do to a neighborhood.
Michigan Takes Huge Census Hit
Yes, we are the only State to lose population from 2000 to 2010, dropping 0.6% of our residents and ending with a head count of 9,883,640. Large cities dependent on auto manufacturing fared the worst. Detroit lost 237,000 people for a 25% drop, Flint lost 18%, Saginaw 17%, and Pontiac lost just over 10% of it's population. But some areas gained in population.
My ‘home base’ – Livingston County – actually fared well in the census, gaining 15.3% or 24,024 people since 2000, the second highest gain among Michigan counties. Clinton County was the winner with a 16.5% population gain. The other 81 counties were either negative or slightly more than 2000 census levels.
Some other counties that gained were Macomb at 6.7%, Washtenaw at 6.8%, and Ottawa County with a 10.6% gain. Ottawa County is on the west side of the state. Recognizable cities in Ottawa County include Grand Haven, Zeeland and Holland.
Among Michigan’s top 20 largest cities, only 5 remained unchanged or gained in population, with Sterling Heights in Metro Detroit leading the way at a 4.2% increase, and Wyoming, near Grand Rapids showing a 4.0% gain. Detroit, Flint and Pontiac were the biggest losers in this category, with -25.0%, -18.0% and -10.3%, respectively.
For an easy to use interactive map, go to http://www.detnews.com/article/20110322/SPECIAL05/110321001/1413/Interactive-map--Population-changes-by-Metro-Detroit-community this link on the Detroit News web site.
For more 2010 State census data, visit Michgan’s web site at: http://www.michigan.gov/cgi/0,1607,7-158-54534---,00.html
My ‘home base’ – Livingston County – actually fared well in the census, gaining 15.3% or 24,024 people since 2000, the second highest gain among Michigan counties. Clinton County was the winner with a 16.5% population gain. The other 81 counties were either negative or slightly more than 2000 census levels.
Some other counties that gained were Macomb at 6.7%, Washtenaw at 6.8%, and Ottawa County with a 10.6% gain. Ottawa County is on the west side of the state. Recognizable cities in Ottawa County include Grand Haven, Zeeland and Holland.
Among Michigan’s top 20 largest cities, only 5 remained unchanged or gained in population, with Sterling Heights in Metro Detroit leading the way at a 4.2% increase, and Wyoming, near Grand Rapids showing a 4.0% gain. Detroit, Flint and Pontiac were the biggest losers in this category, with -25.0%, -18.0% and -10.3%, respectively.
For an easy to use interactive map, go to http://www.detnews.com/article/20110322/SPECIAL05/110321001/1413/Interactive-map--Population-changes-by-Metro-Detroit-community this link on the Detroit News web site.
For more 2010 State census data, visit Michgan’s web site at: http://www.michigan.gov/cgi/0,1607,7-158-54534---,00.html
Saturday, March 26, 2011
Great New Condo Listing
http://www.realestatemich.com/10/listing/20580
Tuesday, March 22, 2011
New Construction Market
I participate in, and receive the results of a monthly survey of Realtors from across the country. This survey from Credit Suisse is a comprehensive look at various market areas. This month's report notes that the new home market is increasingly driven by buyers that are responding to "great deals, strong affordability, and the fear of higher mortgage rates."
The Metro Detroit data signals that buyer traffic for new construction was short of agent's expectations, that builder incentives were rising, prices were still falling and it was taking longer to sell a home. No surprises there!
There are opportunities to pick up lots or even completed homes at good prices. You do have to be careful about developments that are not fully built out and that have Home Owner Associations (HOAs), though. Typically the developer keeps control of the HOA until it reaches some pre-determined occupancy rate, 50%, 60%. At that point management transfers to the residents who elect officers.
Many smaller builders and developers have gone out of business and your selection of communities is somewhat restricted to the larger production companies. Some consumers are buying lots and operating as their own 'general' contractor, finding the tradesmen to do the specialized jobs like HVAC, electrical and plumbing. House 'packages' from some area lumber companies are also another choice for a new built home. If you decide to go this route, be sure that you have enough time to attend to all of the details required with building your new home. Often it's better to pay a little more to get an experienced general contractor on the job site as your 'eyes and ears'.
It's also a bit tougher to find financing for vacant land and for construction loans, but they are available. Vacant land sales are still depressed. Here's a quick summary of Livingston County YTD vacant land sales as of the end of February for the last seven years:
2005 - 67
2006 - 41
2007 - 17
2008 - 10
2009 - 12
2010 - 18
2011 - 16
The Metro Detroit data signals that buyer traffic for new construction was short of agent's expectations, that builder incentives were rising, prices were still falling and it was taking longer to sell a home. No surprises there!
There are opportunities to pick up lots or even completed homes at good prices. You do have to be careful about developments that are not fully built out and that have Home Owner Associations (HOAs), though. Typically the developer keeps control of the HOA until it reaches some pre-determined occupancy rate, 50%, 60%. At that point management transfers to the residents who elect officers.
Many smaller builders and developers have gone out of business and your selection of communities is somewhat restricted to the larger production companies. Some consumers are buying lots and operating as their own 'general' contractor, finding the tradesmen to do the specialized jobs like HVAC, electrical and plumbing. House 'packages' from some area lumber companies are also another choice for a new built home. If you decide to go this route, be sure that you have enough time to attend to all of the details required with building your new home. Often it's better to pay a little more to get an experienced general contractor on the job site as your 'eyes and ears'.
It's also a bit tougher to find financing for vacant land and for construction loans, but they are available. Vacant land sales are still depressed. Here's a quick summary of Livingston County YTD vacant land sales as of the end of February for the last seven years:
2005 - 67
2006 - 41
2007 - 17
2008 - 10
2009 - 12
2010 - 18
2011 - 16
Should I Think About Selling?
Like many answers, this one is conditioned upon your reason for selling.
Career and/or location change. This is the group I most often see that absolutely has to sell their home. A great new opportunity out of state, the desire to be closer to family, or retirement to a warmer climate are the most common reasons.
While you can try to rent or lease the existing home, it is very difficult to be a 'long distance' landlord. Many consumers that don't have enough equity to make the sale at least a break even proposition are hiring property management firms to handle tenant screening, rent collection and property maintenance. Their reasoning is often that they are waiting for the market value to go up, but most Real Estate industry and national economic experts are predicting a 5+ year wait for that to happen.
Move-Up Homeowners. This group needs a larger home and may or may not have a lot of equity in their existing home. The family has grown and they need more space. Why not take advantage of buying a bigger house while prices are down? Often that is a good plan, but it depends on their ability to bring money to the table when the current home is sold in many cases. Often there's not enough left to make an appropriate down payment on the new house.
This group also thinks about leasing or renting their existing home, and that sometimes works, but remember to plan for at least a one month vacancy period when the lease is up. You will also need reserves in case a furnace or water heater goes out, or for other small repairs. While the rental market seems to be pretty good right now, it's still all about the money. It's easier to rent an $900/month house than a $1800/month house.
Discretionary Move. This group doesn't have a particularly strong motive to move. Perhaps it's a longer than desired commute to work or they want a change in setting for no particular reason. The days of selling (at a profit, of course) are pretty much gone at this point in time. If you purchased before 2002, you may be OK, especially if you purchased with a 20% down mortgage program.
Everybody's situation is different, and I am happy to go over the benefits and pitfalls of selling with you and to provide you with an approximation of your selling costs without further obligation.
Career and/or location change. This is the group I most often see that absolutely has to sell their home. A great new opportunity out of state, the desire to be closer to family, or retirement to a warmer climate are the most common reasons.
While you can try to rent or lease the existing home, it is very difficult to be a 'long distance' landlord. Many consumers that don't have enough equity to make the sale at least a break even proposition are hiring property management firms to handle tenant screening, rent collection and property maintenance. Their reasoning is often that they are waiting for the market value to go up, but most Real Estate industry and national economic experts are predicting a 5+ year wait for that to happen.
Move-Up Homeowners. This group needs a larger home and may or may not have a lot of equity in their existing home. The family has grown and they need more space. Why not take advantage of buying a bigger house while prices are down? Often that is a good plan, but it depends on their ability to bring money to the table when the current home is sold in many cases. Often there's not enough left to make an appropriate down payment on the new house.
This group also thinks about leasing or renting their existing home, and that sometimes works, but remember to plan for at least a one month vacancy period when the lease is up. You will also need reserves in case a furnace or water heater goes out, or for other small repairs. While the rental market seems to be pretty good right now, it's still all about the money. It's easier to rent an $900/month house than a $1800/month house.
Discretionary Move. This group doesn't have a particularly strong motive to move. Perhaps it's a longer than desired commute to work or they want a change in setting for no particular reason. The days of selling (at a profit, of course) are pretty much gone at this point in time. If you purchased before 2002, you may be OK, especially if you purchased with a 20% down mortgage program.
Everybody's situation is different, and I am happy to go over the benefits and pitfalls of selling with you and to provide you with an approximation of your selling costs without further obligation.
Monday, March 07, 2011
Upcoming Real Estate Seminars
Preview Properties will be hosting some real estate seminars in the near future.
This Thursday, March 10th, we will have a 'Homebuyer Seminar'. Learn the ins and outs of buying a home in this market. Hear from Real Estate professionals, lenders and title company representatives about the different parts of the buying process.
On Wednesday, March 23rd, there will be an 'Investing In Real Estate Seminar'. Learn how to make the best choices when buying properties for investment purposes.
And last, on Wednesday, March 16th there will be a Real Estate Career Seminar. If you've wondered about what it's like to work in Real Estate, please drop in.
All seminars start at 6pm at our office at 130 W. Grand River, Brighton. Feel free to contact either me or Lisa Bohlen at 810-220-1505 for more info.
This Thursday, March 10th, we will have a 'Homebuyer Seminar'. Learn the ins and outs of buying a home in this market. Hear from Real Estate professionals, lenders and title company representatives about the different parts of the buying process.
On Wednesday, March 23rd, there will be an 'Investing In Real Estate Seminar'. Learn how to make the best choices when buying properties for investment purposes.
And last, on Wednesday, March 16th there will be a Real Estate Career Seminar. If you've wondered about what it's like to work in Real Estate, please drop in.
All seminars start at 6pm at our office at 130 W. Grand River, Brighton. Feel free to contact either me or Lisa Bohlen at 810-220-1505 for more info.
Tuesday, February 15, 2011
Winning at 'Highest and Best'
In my market areas, there's a shortage of supply in the under $150,000 price range. That means that most first time buyers are getting into multiple bid situations. As both a listing and a selling agent, here's what I've seen.
First, sometimes the list price is artifically low. Maybe it's a short sale and that's the only way the seller could generate enough showings. Maybe it's a bank owned with a listing agent from 30 miles away and they're not familiar enough with the local market to price it a little higher. Or maybe the bank just wants to get it sold fast.
What I'm driving at is that the list price is not always the 'fair' market value. Usually we see that on the other end of the spectrum - where it's too high. I've also seen $89,000 properties sell for $102,000 and $107,000 homes sell for $121,000 - and pretty recently. And that means they did appraise, folks.
I always counsel my buyers that we need to be ready to move fast. Strong pre-approval is number one.
Also, be ready to scurry to get a bank specified pre-approval. Wells Fargo and Bank of America do this all the time, as do many other foreclosure (REO) vendors. Your buyer can still use their lender of choice, but they better have their info ready for a quick bank pre-approval from another lender.
If you can get your offer accepted quickly you can eliminate the multiple offer scenario. But that's happening less and less. Many banks don't allow ANY offers for the for the first seven days of a listing. Then it's open only to owner occupants for the next week, then it opens to investors.
I also suggest that you forget about the list price. Do what you're supposed to do - a CMA on the property. Sure, you take into consideration its condition and its defects, but you need to establish a real value 'as is'. In some cases your buyer may elect to surpass even that amount. Maybe it's convenient to family or commuting needs. Perhaps it's the school district they really want their child to attend. Perhaps it's an REO property in (gasp!) move-in condition.
Paying a little over fair market value isn't that big of a deal when you're looking at amortizing a loan over 30 years and IF this is the property they want the most. We all get into this lowest price mindset and lose sight of the bigger picture.
Make the terms as painless as possible. Be prepared to eliminate seller concessions towards closing costs if necessary to make your 'highest & best' more attractive. I've seen banks take a lower priced but more streamlined terms offer after they call for highest & best. That's not the norm, of course, but it does happen.
I do quite well for my buyers on price and terms. But if they constantly lose house after house to superior bids, not so much. We've all worked with buyers that exhibit 'selective memory'. We still have to start from the very first meeting to establish how they will be successful in buying a new home with the least amount of stress, and to fully explain market dynamics. That's why they chose us instead of another agent.
Tuesday, February 01, 2011
It Is Time To Buy? - Prices Near The 'Bottom' Say Economists
Yes, I know. We've been hearing inaccurate predictions about the Real Estate industry for, well, years. But this recent poll of economists seems to indicate that we're (finally!) near the bottom of the home value skid.
Analyzing external influences like the homebuyer's tax credit and data from Standard and Poor's Case-Schiller Index, thirty three economists offered their views on housing prices. Most indicate that we're at a point where home prices are 'fairly valued', the report says.
Fair values are important to buyers, especially first-time home buyers who are most often on tighter budgets and who are also looking at entry level or more affordable properties. The economists expect prices to drop about 3% more from present values and bottom out in the second or third quarter of 2011. The report also indicates that it may take a lot longer for new home sales to rebound.
The link to the article is here: http://www.mortgagenewsdaily.com/01282011_home_price_outlook.asp
If you're considering a home purchase in my market area, feel free to call me. It would be my pleasure to talk with you about your goals and to assist you in any way possible.
Analyzing external influences like the homebuyer's tax credit and data from Standard and Poor's Case-Schiller Index, thirty three economists offered their views on housing prices. Most indicate that we're at a point where home prices are 'fairly valued', the report says.
Fair values are important to buyers, especially first-time home buyers who are most often on tighter budgets and who are also looking at entry level or more affordable properties. The economists expect prices to drop about 3% more from present values and bottom out in the second or third quarter of 2011. The report also indicates that it may take a lot longer for new home sales to rebound.
The link to the article is here: http://www.mortgagenewsdaily.com/01282011_home_price_outlook.asp
If you're considering a home purchase in my market area, feel free to call me. It would be my pleasure to talk with you about your goals and to assist you in any way possible.
Monday, January 24, 2011
Preview Properties - Walk For Warmth
Preview Properties has a Community Service Committee that meets to choose various charities for whom we raise money. Every month is a new community group. Fundraisers vary, but the most popular is either a breakfast or lunch, pot luck style, where agents and staff bring in a dish, then pay to eat!
Tomorrow, Tuesday, January 25th, the beneficiary is the Oakland Livingston Human Services Agency's (OLHSA) 'Walk For Warmth' campaign. And the food theme is 'Chili Cookoff'. This is a favorite of mine. Not to brag (too much), but I won the last chili cookoff. 1st out of 9 entries was pretty good for me. Plus I got to rub it in to an agent buddy that is pretty darned proud of his chili. It's all in good humor and of course, the money raised goes to a great cause.
I'll be making my special 'Sweetwater Chili' recipe today because it is slow cooked for a long time and is even better the next day. No matter how I fare this year, Walk for Warmth will certainly win.
And speaking of that program, Erica Karfonta, Director of OLHSA, will be the guest speaker at this Thursday's Brighton Optimist Club Meeting. Erica is coming to talk to us about that program specifically. The Optimists do wonderful things for the youth in the County, but they also support a lot of other community service and charitable organizations, too.
If you're interested, feel free to pop in to the Bauery Restaurant at Mt. Brighton at 7:30 am this Thursday, January 27th. First time visitors get their breakfasts free. The Brighton Optimists have an ambitious roster of activities to complete this year and are always looking for like minded residents to join in and help.
Tomorrow, Tuesday, January 25th, the beneficiary is the Oakland Livingston Human Services Agency's (OLHSA) 'Walk For Warmth' campaign. And the food theme is 'Chili Cookoff'. This is a favorite of mine. Not to brag (too much), but I won the last chili cookoff. 1st out of 9 entries was pretty good for me. Plus I got to rub it in to an agent buddy that is pretty darned proud of his chili. It's all in good humor and of course, the money raised goes to a great cause.
I'll be making my special 'Sweetwater Chili' recipe today because it is slow cooked for a long time and is even better the next day. No matter how I fare this year, Walk for Warmth will certainly win.
And speaking of that program, Erica Karfonta, Director of OLHSA, will be the guest speaker at this Thursday's Brighton Optimist Club Meeting. Erica is coming to talk to us about that program specifically. The Optimists do wonderful things for the youth in the County, but they also support a lot of other community service and charitable organizations, too.
If you're interested, feel free to pop in to the Bauery Restaurant at Mt. Brighton at 7:30 am this Thursday, January 27th. First time visitors get their breakfasts free. The Brighton Optimists have an ambitious roster of activities to complete this year and are always looking for like minded residents to join in and help.
Thursday, January 20, 2011
Eight States Running Out of Homebuyers?
An article on the Yahoo Finance page, attributed to 24/7 Wall St., has identified 8 states where buyers may have gone on "strike", and coupled with the high foreclosure rate, has caused home prices to plummet.
Using previously released studies and data from sources such as RealtyTrac and the S & P Case-Schiller Index, the authors reiterate claims that home prices will drop another 7%-10% this year and that it may take another four to five years for the housing market to recover.
The eight states listed, in reverse order are:
8. Florida - with a vacancy rate of over 21% and the 3rd worst 2010 Foreclosure Rate
7. Oregon - 10.6% unemployment and more than a 74% reduction in building permits from 2006 - 2010.
6. Georgia - 6th worst state in 2010 for foreclosures and a 10% unemployment
5. Illinois - 1.23% population growth, 5th worst for decrease in building permits
4. California - 4th worst foreclosure rate and tied for 2nd worst unemployment rate
3. Arizona - 2nd worst state for foreclosures and 5th worst for vacancy rate (17+%)
2. Nevada - worst in the nation for foreclosure rate, unemployment and decrease in building permits
And the worst state according to this article? Michigan - my state.
A 15+% vacancy rate, 12.4% unemployment rate and the biggest population 'loser' from 2005-2010 at -2.05%, we know how the travails of the automotive sector have impacted all of us. Many are optimistic that new leadership in Detroit, by Mayor Dave Bing, and our new Governor, Rick Snyder, will start to propel us out of this mess and make some progress.
Of course, the controversial auto bailouts of GM and Chrysler didn't hurt and for now those companies appear to be gaining strength. Ford Motor Company remained in a stronger position and if anything has made even more progress in the last two years. I doubt that we'll ever revisit the years of massive manufacturing production that once were, but Detroit and Michigan are trying to reinvent themselves.
The article suggests that there are buyers waiting for even lower prices and that we may never again see the home prices of 2006, even after recovery. In areas with very high unemployment rates, the inventory of available homes may be too large to be supported. I don't necessarily agree with the 'buyer strike' terminology, although I have heard some potential buyers say they were going to save more money and wait for prices to drop even more before purchasing. It does not bode well for sellers that do not have a good amount of equity in their homes, that's for sure.
A fascinating snapshot, complete with data sources, and an easy read.
Using previously released studies and data from sources such as RealtyTrac and the S & P Case-Schiller Index, the authors reiterate claims that home prices will drop another 7%-10% this year and that it may take another four to five years for the housing market to recover.
The eight states listed, in reverse order are:
8. Florida - with a vacancy rate of over 21% and the 3rd worst 2010 Foreclosure Rate
7. Oregon - 10.6% unemployment and more than a 74% reduction in building permits from 2006 - 2010.
6. Georgia - 6th worst state in 2010 for foreclosures and a 10% unemployment
5. Illinois - 1.23% population growth, 5th worst for decrease in building permits
4. California - 4th worst foreclosure rate and tied for 2nd worst unemployment rate
3. Arizona - 2nd worst state for foreclosures and 5th worst for vacancy rate (17+%)
2. Nevada - worst in the nation for foreclosure rate, unemployment and decrease in building permits
And the worst state according to this article? Michigan - my state.
A 15+% vacancy rate, 12.4% unemployment rate and the biggest population 'loser' from 2005-2010 at -2.05%, we know how the travails of the automotive sector have impacted all of us. Many are optimistic that new leadership in Detroit, by Mayor Dave Bing, and our new Governor, Rick Snyder, will start to propel us out of this mess and make some progress.
Of course, the controversial auto bailouts of GM and Chrysler didn't hurt and for now those companies appear to be gaining strength. Ford Motor Company remained in a stronger position and if anything has made even more progress in the last two years. I doubt that we'll ever revisit the years of massive manufacturing production that once were, but Detroit and Michigan are trying to reinvent themselves.
The article suggests that there are buyers waiting for even lower prices and that we may never again see the home prices of 2006, even after recovery. In areas with very high unemployment rates, the inventory of available homes may be too large to be supported. I don't necessarily agree with the 'buyer strike' terminology, although I have heard some potential buyers say they were going to save more money and wait for prices to drop even more before purchasing. It does not bode well for sellers that do not have a good amount of equity in their homes, that's for sure.
A fascinating snapshot, complete with data sources, and an easy read.
Wednesday, January 19, 2011
Is The Real Estate Market Rebounding?
We measure inventory in terms of "months of supply". Example: If there are 100 units available and an average of 10 units are sold each month (for the last year), that's 100/10=10 month supply. For those of us in the industry, a 6 month supply of homes (or condos) is considered a balanced market. Less than a 6 month supply is a seller's market, longer than 6 months is a buyer's market. Of course, that's a very general guideline, but it works most of the time.
Here's some information that was discussed at my company's sales meeting yesterday. From calendar year 2009 to calendar year 2010, the inventory of detached single family residences (SFR) in Livingston County (MI) dropped by 17.5%, from 8.0 to 6.6 months of supply. Likewise, the condo supply dropped from 7.9 to 5.8, or by 26.5%.
In Oakland County, the SFR went from 7.0 to 5.8, or a 17.1% drop while condos went from a 9.4 month supply to 5.6 months - a whopping 40.4% drop in inventory!
Washtenaw also saw drops, although more modest. For SFRs it was from 7.4 in 2009 to 6.9 in 2010, a 6.6% reduction. Condos went from 9.1 to 6.1 months supply, or a 24.2% reduction.
Now we know that 2010 was still a big year for foreclosures and that not as many foreclosures came on the market for resale. Banks seem to be hanging on to some of the inventory, keeping them off the market. But I don't think that accounts for all of these figures.
We have historically low interest rates (although they are creeping back up), low purchase prices, lower inventory, and judging by our collective calls and inquiries there is strong buyer demand.
My personal experience is that when a property gets to the 'right' price it will create a multiple offer situation. I've recently been in situations where one of my listings had 6 competing offers, another 4. As a buyer's agent, I've been there, too. My feeling is that the housing market is starting to rebound, although we're certainly not in the clear yet. 'Rebound' is in terms of the number of sales, not sales prices, which remain pretty low. What do you think about the real estate market or the economy in general?
Here's some information that was discussed at my company's sales meeting yesterday. From calendar year 2009 to calendar year 2010, the inventory of detached single family residences (SFR) in Livingston County (MI) dropped by 17.5%, from 8.0 to 6.6 months of supply. Likewise, the condo supply dropped from 7.9 to 5.8, or by 26.5%.
In Oakland County, the SFR went from 7.0 to 5.8, or a 17.1% drop while condos went from a 9.4 month supply to 5.6 months - a whopping 40.4% drop in inventory!
Washtenaw also saw drops, although more modest. For SFRs it was from 7.4 in 2009 to 6.9 in 2010, a 6.6% reduction. Condos went from 9.1 to 6.1 months supply, or a 24.2% reduction.
Now we know that 2010 was still a big year for foreclosures and that not as many foreclosures came on the market for resale. Banks seem to be hanging on to some of the inventory, keeping them off the market. But I don't think that accounts for all of these figures.
We have historically low interest rates (although they are creeping back up), low purchase prices, lower inventory, and judging by our collective calls and inquiries there is strong buyer demand.
My personal experience is that when a property gets to the 'right' price it will create a multiple offer situation. I've recently been in situations where one of my listings had 6 competing offers, another 4. As a buyer's agent, I've been there, too. My feeling is that the housing market is starting to rebound, although we're certainly not in the clear yet. 'Rebound' is in terms of the number of sales, not sales prices, which remain pretty low. What do you think about the real estate market or the economy in general?
Monday, January 17, 2011
Camel Race - February 5,2011
They're at it again! The Brighton Optimist Club is sponsoring its 3rd Camel Race at Crystal Gardens Banquet Center in Howell, on February 5th, 2011. A different kind of Millionaire Party licensed under the Charitable Gaming Division of the State of Michigan (License #M55856), this event will keep you talking for weeks.
Camels that have been adopted by businesses and decorated uniquely, race 6 at a time in 8 different heats. Wagering is pari-mutuel syle, and there are door prizes, 50/50 raffles and giveaways between the race heats. There is also voting for the best decorated camel. $30 admission gets you dinner, drink tickets for either draft beer or house wine, and an evening of fun. Doors open at 6pm and festivities conclude at 11pm. Proceeds are used to support the Brighton Optimist Club's youth and community service activities.
Doors open at 6pm and festivities conclude around 11pm. Tickets can be purchased online via a secure system at the event web site, http://www.bigcamelrace.com/. For more info, email info@BigCamelRace.com.
Doors open at 6pm and festivities conclude around 11pm. Tickets can be purchased online via a secure system at the event web site, http://www.bigcamelrace.com/. For more info, email info@BigCamelRace.com.
Friday, January 07, 2011
Great Fun & Community Support!
The Brighton Optimist Club has awarded tens of thousands of dollars in its 33 year history. They do great things for the community and especially for its youth. This event is a major fundraiser that helps them continue their grat work.
The Brighton Optimist Club is presenting their 3rd Camel Race on February 5, 2011 at Crystal Gardens, in Howell, MI. Doors open at 6pm, dinner at 6:30pm, and festivities immediately after dinner.
What kind of festivities? Well, as part of your $30 admission, you get the dinner and drink tickets for both draft beer and house wines. Cash bar is available for other drinks. There will be 50/50 raffles, door prizes and betting on the camels. There will be opportunities for losing bettors to win 'consolation prizes' between the race heats, too. Early bird? Not worry, this even is usually over around 11pm.
You will get caught up in the betting and racing action. Tickets can be purchased online at the Camel Race web site, or the Brighton Optimist web site, or feel free to drop me an email.
License #M55856 issued through the State of Michigan Charitable Gaming Division. Proceeds go to the general fund of the Optimist Foundation of Livingston County, a 501 c3 organization.
The Brighton Optimist Club is presenting their 3rd Camel Race on February 5, 2011 at Crystal Gardens, in Howell, MI. Doors open at 6pm, dinner at 6:30pm, and festivities immediately after dinner.
What kind of festivities? Well, as part of your $30 admission, you get the dinner and drink tickets for both draft beer and house wines. Cash bar is available for other drinks. There will be 50/50 raffles, door prizes and betting on the camels. There will be opportunities for losing bettors to win 'consolation prizes' between the race heats, too. Early bird? Not worry, this even is usually over around 11pm.
You will get caught up in the betting and racing action. Tickets can be purchased online at the Camel Race web site, or the Brighton Optimist web site, or feel free to drop me an email.
License #M55856 issued through the State of Michigan Charitable Gaming Division. Proceeds go to the general fund of the Optimist Foundation of Livingston County, a 501 c3 organization.
Wednesday, December 29, 2010
Chemung Hills Golf Club & Banquet Center Sold
Oceola Township (Livingston County, Michigan) approved the purchase of this facility at a meeting on December 27, 2010. The $750,000 price tag includes all equipment and the liquor license.
The facility will be operated by an outside organization but ownership will be retained by the Township and no tax dollars are expected to be used for operations.
This puts to rest the periodically turbulent proposals by investment groups to transform the 150+ acre parcel into either a residential development, or more recently, an RV park.
After a long history as a private club, Chemung Hills could no longer operate profitably in that form. It became a public golf course while it searched for possible buyers.
In 2003, two Farmington Hills developers wanted to convert it to a 300 unit residential project where home prices would start at $300,000. The lack of sewer service made that plan problematic. A 600+ site RV campground proposal came about in 2008, but again, zoning and infrastructure issues prevented it from occuring.
In the fall of 2009, the facility went into receivership and was
operated by Osprey Recreational Properties while a purchaser was sought.
This is a wonderful recreational facility and a great small to mid-size banquet facility, too. Beautiful setting, desirable amenities and good food have always been the standard here.
Oceola Township now has a great facility that should be self-supporting and will insure that we keep a great local golf course
and banquet center open.
The facility will be operated by an outside organization but ownership will be retained by the Township and no tax dollars are expected to be used for operations.
This puts to rest the periodically turbulent proposals by investment groups to transform the 150+ acre parcel into either a residential development, or more recently, an RV park.
After a long history as a private club, Chemung Hills could no longer operate profitably in that form. It became a public golf course while it searched for possible buyers.
In 2003, two Farmington Hills developers wanted to convert it to a 300 unit residential project where home prices would start at $300,000. The lack of sewer service made that plan problematic. A 600+ site RV campground proposal came about in 2008, but again, zoning and infrastructure issues prevented it from occuring.
In the fall of 2009, the facility went into receivership and was
operated by Osprey Recreational Properties while a purchaser was sought.
This is a wonderful recreational facility and a great small to mid-size banquet facility, too. Beautiful setting, desirable amenities and good food have always been the standard here.
Oceola Township now has a great facility that should be self-supporting and will insure that we keep a great local golf course
and banquet center open.
Friday, December 03, 2010
Great News For Buyers!
Legislation supported by the Michigan Association of Realtors (MAR) to allow foreclosed properties to keep their principal residence exemption has passed the House & Senate. This important legislation is expected to be signed into law by Governor Granholm within days.
The high number of foreclosed properties on the market lose their homestead exemption and cost buyers, often new homeowners on a tight budge, a lot of extra money in property taxes. This means they can qualify for lower overall mortgage amounts, and since these buyers often have tax escrows, an have a lower monthly payment, too.
For full details, read the entire legislation at http://legislature.mi.gov/doc.aspx?2009-SB-0077
The high number of foreclosed properties on the market lose their homestead exemption and cost buyers, often new homeowners on a tight budge, a lot of extra money in property taxes. This means they can qualify for lower overall mortgage amounts, and since these buyers often have tax escrows, an have a lower monthly payment, too.
For full details, read the entire legislation at http://legislature.mi.gov/doc.aspx?2009-SB-0077
Wednesday, November 24, 2010
Shadow Inventory Going Up
A November 22, 2010 report from CoreLogic states that pending supply (shadow inventory) of homes is up more than 10% (2.1 million vs. 1.9 million units) from a year ago. So what, exactly, is ‘shadow inventory’ and what does it mean to us?
Shadow inventory has a couple of parts. The first part is lender foreclosed upon properties that are not yet on the market. We know that the rate of foreclosures is unfortunately ‘robust’, but we’re not seeing those properties hit the market. Hence the term ‘pending supply’. The other part is an estimate based on seriously delinquent home loans. In this case that means homes that haven’t been foreclosed upon, but are 90 days or more in arrears. The likelihood of many of them reaching foreclosure is high.
The bad news for Michigan is that we have one of the highest levels of ‘distressed months supply’, or a high ratio of properties that are 90 days or more delinquent to the supply of total housing inventory, homes that are listed and available to consumers.
If lenders let these ‘pending supply’ properties onto the market in a short time frame, the fear is that housing prices will plummet even further and faster than what we are currently experiencing. That is not good for them or for the economy in general.
It is possible that some of the seriously delinquent homes will be sold as ‘short sales’, and it’s also possible that some home owners will find other ways to avoid foreclosure, but the trend is disturbing. For buyers, this reinforces that it is a good time to buy, especially with the record or near-record low interest rates. Sellers that do not have a strong reason for selling may want to hunker down and try to ride this out, but all industry expectations are that we’re in for a long, bumpy ride to get back appreciating home values.
CoreLogic is a leading provider of consumer, financial and property information, analytics and services to business and government.
The full report can be found at:
http://www.corelogic.com/uploadedFiles/Pages/About_Us/News/CoreLogic%20Shadow%20Inventory%2011-22%20FINAL.pdf
Shadow inventory has a couple of parts. The first part is lender foreclosed upon properties that are not yet on the market. We know that the rate of foreclosures is unfortunately ‘robust’, but we’re not seeing those properties hit the market. Hence the term ‘pending supply’. The other part is an estimate based on seriously delinquent home loans. In this case that means homes that haven’t been foreclosed upon, but are 90 days or more in arrears. The likelihood of many of them reaching foreclosure is high.
The bad news for Michigan is that we have one of the highest levels of ‘distressed months supply’, or a high ratio of properties that are 90 days or more delinquent to the supply of total housing inventory, homes that are listed and available to consumers.
If lenders let these ‘pending supply’ properties onto the market in a short time frame, the fear is that housing prices will plummet even further and faster than what we are currently experiencing. That is not good for them or for the economy in general.
It is possible that some of the seriously delinquent homes will be sold as ‘short sales’, and it’s also possible that some home owners will find other ways to avoid foreclosure, but the trend is disturbing. For buyers, this reinforces that it is a good time to buy, especially with the record or near-record low interest rates. Sellers that do not have a strong reason for selling may want to hunker down and try to ride this out, but all industry expectations are that we’re in for a long, bumpy ride to get back appreciating home values.
CoreLogic is a leading provider of consumer, financial and property information, analytics and services to business and government.
The full report can be found at:
http://www.corelogic.com/uploadedFiles/Pages/About_Us/News/CoreLogic%20Shadow%20Inventory%2011-22%20FINAL.pdf
Tuesday, July 13, 2010
Market Update - Livingston County
Well, we've followed up a couple of 'old style' winters (co-o-old, snowy) with an old style summer - really hot and humid. My flowers are being watered and tended to a bit more than usual, with decent results. The tomatoes are just loving this weather, though.
On the Real Estate front, there's still a good amount of buyer activity, even though the federal tax credit for buyers is pretty much over. Sellers are being realistic about prices (in general) and know that properties are selling at a lower price.
Mortgage rates are very attractive but lending criteria has tightened to make things a bit more challenging. There's still an acceptable amount of inventory available (8 month supply of homes), but not as much as there was a year ago. Those of us that work a fair amount of foreclosures are hearing from banks that they expect a release of inventory at any time - but we've been hearing that for quite a while now.
Property values are still dropping nominally but that alone is an improvement. If you're a buyer, this is still a great time to make it happen. Sellers - I don't expect to see any big upward movement in prices for at least 3-5 years, so if you need to move, do it now while lending is attractive for the buyers and while you can make a good deal on the buying end of your move.
There are more commercial vacancies, just look at any strip mall as you're driving by. There's very little new commercial construction, except for prime locations with pre-lease agreements.
On the Real Estate front, there's still a good amount of buyer activity, even though the federal tax credit for buyers is pretty much over. Sellers are being realistic about prices (in general) and know that properties are selling at a lower price.
Mortgage rates are very attractive but lending criteria has tightened to make things a bit more challenging. There's still an acceptable amount of inventory available (8 month supply of homes), but not as much as there was a year ago. Those of us that work a fair amount of foreclosures are hearing from banks that they expect a release of inventory at any time - but we've been hearing that for quite a while now.
Property values are still dropping nominally but that alone is an improvement. If you're a buyer, this is still a great time to make it happen. Sellers - I don't expect to see any big upward movement in prices for at least 3-5 years, so if you need to move, do it now while lending is attractive for the buyers and while you can make a good deal on the buying end of your move.
There are more commercial vacancies, just look at any strip mall as you're driving by. There's very little new commercial construction, except for prime locations with pre-lease agreements.
Friday, June 11, 2010
Real Estate Events - Brighton, Michigan
Yes, Preview Properties is at it again. In June and July 2010, they are offering a series of short real estate seminars geared towards the public. On Wednesday, June 16th, it'll be "What's Your Home Worth?". On Wednesday, June 23rd, "Investing In Real Estate". Tuesday, June 29th's topic will be "Careers In Real Estate".
Wednesday, June 14th will be "Buying A Home", a great one for first-time buyers, or buyers that haven't purchased a home in many years. After all, things do change and you want to be up to speed, don't you? On Wednesday, July 21st, it'll be a repat of "Investing In Real Estate". This one has Realtors, Title Company staff and lenders present to answer all of your questions.
All of the presentations begin at 6pm at our office, 130 W. Grand River Ave., Brighton, MI 48116. For reservations, or more info, call Lisa Bohlen at 810-220-1505 or email lbohlen@previewproperties.com.
Wednesday, June 14th will be "Buying A Home", a great one for first-time buyers, or buyers that haven't purchased a home in many years. After all, things do change and you want to be up to speed, don't you? On Wednesday, July 21st, it'll be a repat of "Investing In Real Estate". This one has Realtors, Title Company staff and lenders present to answer all of your questions.
All of the presentations begin at 6pm at our office, 130 W. Grand River Ave., Brighton, MI 48116. For reservations, or more info, call Lisa Bohlen at 810-220-1505 or email lbohlen@previewproperties.com.
Sunday, April 04, 2010
Preview Properties News
I'm so proud to be affiliated with Preview Properties. They have a standing community service committee and every month we have an in-house benefit for a local not-for-profit group. We've collected over 1800 cell phones for the Cell Phones for Soldiers program, as just one example.
On April 1st, the Red Cross Blood Drive had 27 donors - no foolin'! Even though we have a sizable building, on blood drive days the Red Cross pretty much takes over the building's lobby and conference rooms.
On April 29th, from 5:30-7:30 pm, we're having an Open House and Fundraiser for Gleaners Community Food Bank. There will be appetizers, wine, entertainment and a silent auction. Put this on your calendar and bring your checkbook! This year, one in eight Michigan families will need emergency food assistance. Food collected in Livingston County stays in Livingston County. In fact, we never collect enough to feed our own hungry. Food has to be brought in from other counties to meet our needs.
And don't forget about the Livingston County Association of Realtors' Fill The Gazebo Food Drive on May 1st. Bring non-perishable food items to the Brighton Millpond. There will be people in the center lane collecting food - you won't even have to get out of your car.
On April 1st, the Red Cross Blood Drive had 27 donors - no foolin'! Even though we have a sizable building, on blood drive days the Red Cross pretty much takes over the building's lobby and conference rooms.
On April 29th, from 5:30-7:30 pm, we're having an Open House and Fundraiser for Gleaners Community Food Bank. There will be appetizers, wine, entertainment and a silent auction. Put this on your calendar and bring your checkbook! This year, one in eight Michigan families will need emergency food assistance. Food collected in Livingston County stays in Livingston County. In fact, we never collect enough to feed our own hungry. Food has to be brought in from other counties to meet our needs.
And don't forget about the Livingston County Association of Realtors' Fill The Gazebo Food Drive on May 1st. Bring non-perishable food items to the Brighton Millpond. There will be people in the center lane collecting food - you won't even have to get out of your car.
Wednesday, January 27, 2010
Haiti Benefit in Brighton, MI
I just got an email with this info:
Family Photos to Benefit Haiti:Saturday (1/30) 10am-4pm at 124 W. Main St. in downtown Brighton (W4Signs across from Rolison Hardware)
For a $20 donation to the Red Cross for Haitian earthquake relief,The Livingston County Photo Group will take your family (or individual) portrait and provide you the full resolution electronic image via web site access.Come and help us support this excellent cause!Contact Nate Warner (PhotosByNate@gmail.com) for more info!
Family Photos to Benefit Haiti:Saturday (1/30) 10am-4pm at 124 W. Main St. in downtown Brighton (W4Signs across from Rolison Hardware)
For a $20 donation to the Red Cross for Haitian earthquake relief,The Livingston County Photo Group will take your family (or individual) portrait and provide you the full resolution electronic image via web site access.Come and help us support this excellent cause!Contact Nate Warner (PhotosByNate@gmail.com) for more info!
Is Tourism Bouncing Back?
This from Comerica's Chief Economist, Dana Johnson:
MICHIGAN TOURISM GATHERS SPEED IN FOURTH QUARTER REPORTS COMERICA BANK
DALLAS/January 27, 2010 – Comerica Bank’s Michigan Tourism Index jumped six points in the fourth quarter of 2009, to a level of 94. The current reading is up seven points from the Index’s cyclical low of 87, and marks the highest Index level since the second quarter of 2008. The Index averaged 90 over the course of 2009, down two points from the 2008 average. Third quarter 2009’s reading was revised from 89 to a level of 88.
"After dipping slightly in the third quarter of 2009, our Index has resumed the upward trend established over the first half of 2009," said Dana Johnson, Chief Economic at Comerica Bank. "Given that the fourth quarter surge in our Index was not broad-based, it is quite possible that the Index will pull back from its current reading in the first quarter of 2010. As trends in personal and business travel continue to improve, the generally upward trend already in place should continue over the course of 2010."
"The Michigan Tourism Index is a quarterly summary of six equally weighted, seasonally adjusted travel, lodging and entertainment data series. These series serve as a proxy for statewide tourism activity."
MICHIGAN TOURISM GATHERS SPEED IN FOURTH QUARTER REPORTS COMERICA BANK
DALLAS/January 27, 2010 – Comerica Bank’s Michigan Tourism Index jumped six points in the fourth quarter of 2009, to a level of 94. The current reading is up seven points from the Index’s cyclical low of 87, and marks the highest Index level since the second quarter of 2008. The Index averaged 90 over the course of 2009, down two points from the 2008 average. Third quarter 2009’s reading was revised from 89 to a level of 88.
"After dipping slightly in the third quarter of 2009, our Index has resumed the upward trend established over the first half of 2009," said Dana Johnson, Chief Economic at Comerica Bank. "Given that the fourth quarter surge in our Index was not broad-based, it is quite possible that the Index will pull back from its current reading in the first quarter of 2010. As trends in personal and business travel continue to improve, the generally upward trend already in place should continue over the course of 2010."
"The Michigan Tourism Index is a quarterly summary of six equally weighted, seasonally adjusted travel, lodging and entertainment data series. These series serve as a proxy for statewide tourism activity."
Tuesday, January 26, 2010
Learn About Property Assessments!
Thursday, Jan 28, 2010 - 6pm, Howell HS Auditorium (1200 W. Grand River, Howell).
Understand how assessments are arrived at, legal requirements for assessments, how to appeal your assessment and more. There will be a question and answer period at the end of the presentation.
For more information: http://www.hamburg.mi.us/assessing/pdfs/presentation%20news%20release%201-10.pdf
Understand how assessments are arrived at, legal requirements for assessments, how to appeal your assessment and more. There will be a question and answer period at the end of the presentation.
For more information: http://www.hamburg.mi.us/assessing/pdfs/presentation%20news%20release%201-10.pdf
Tuesday, January 19, 2010
Investing In Real Estate Seminar
Preview Properties is hosting the above seminar on Wednesday, January 20, 2010, at 6pm at our office on Brighton. Curious about investing in Real Estate? This program will give you an opportunity to hear from Real Estate professionals about the pros and cons of this investment strategy.
Preview Properties is located at 130 W. Grand River Ave., Brighton, MI. RSVP to Lisa at 810-220-1505.
Preview Properties is located at 130 W. Grand River Ave., Brighton, MI. RSVP to Lisa at 810-220-1505.
Wednesday, October 21, 2009
"Free Foreclosure Lists"
Wow, every Real Estate office that I pass has a banner, marquee, or sign claiming the above. Just stop on in and pick it up. Since I deal with a large number of foreclosures as a listing agent, I thought I'd share a couple of thoughts.
I get calls every day for foreclosed listings that sold two to four weeks ago. They're definitely not being found online. Are offices not updating these lists or are consumers picking them up and letting them sit for weeks before they act? Hard to say, maybe some of both.
If you are interested in foreclosures, here's a few other thoughts. First, properties under $80,000 go very, very fast. If they're financeable, that is in good enough shape, they're absorbed quickly. In general, a lot of homes under $50,000 cannot be financed because they need too much work. Unless you are getting a rehab loan or a construction loan, you'll need to buy cash.
Are you handy? If you are, the above example is OK. If you're not, what good is buying a $20,000 house if you have to hire out all of the work to make it habitable? You might as well spend more on a home that can be financed and perhaps needs only re-decorating. Will you live there yourself or rent it out? Maybe it's a home for an older child. All are OK, but know your strengths and plan accordingly.
Of course, I am biased as a Real Estate Professional, but unless you have done a lot of buying and selling on your own, I strongly recommend that you work with an agent of your choice. They will help you refine your plan, get you listings that are appropriate and guide you through the buying process.
Remember, you have to know what you can handle in terms of repairs and expenses. If you're looking at the low end of the price range, you have to be prepared to act quickly or lose out to another buyer. I am amazed at the number of people buying under $50,000 homes for cash. Your best bet for a successful purchse is to work with a real estate agent that knows bank owned property procedures.
I get calls every day for foreclosed listings that sold two to four weeks ago. They're definitely not being found online. Are offices not updating these lists or are consumers picking them up and letting them sit for weeks before they act? Hard to say, maybe some of both.
If you are interested in foreclosures, here's a few other thoughts. First, properties under $80,000 go very, very fast. If they're financeable, that is in good enough shape, they're absorbed quickly. In general, a lot of homes under $50,000 cannot be financed because they need too much work. Unless you are getting a rehab loan or a construction loan, you'll need to buy cash.
Are you handy? If you are, the above example is OK. If you're not, what good is buying a $20,000 house if you have to hire out all of the work to make it habitable? You might as well spend more on a home that can be financed and perhaps needs only re-decorating. Will you live there yourself or rent it out? Maybe it's a home for an older child. All are OK, but know your strengths and plan accordingly.
Of course, I am biased as a Real Estate Professional, but unless you have done a lot of buying and selling on your own, I strongly recommend that you work with an agent of your choice. They will help you refine your plan, get you listings that are appropriate and guide you through the buying process.
Remember, you have to know what you can handle in terms of repairs and expenses. If you're looking at the low end of the price range, you have to be prepared to act quickly or lose out to another buyer. I am amazed at the number of people buying under $50,000 homes for cash. Your best bet for a successful purchse is to work with a real estate agent that knows bank owned property procedures.
Tuesday, October 13, 2009
Investing in Foreclosed Properties and Homebuying Seminar
Preview Properties is presenting this session at 6pm on Wednesday, October 21st at the office, 130 W. Grand River, Brighton 48116. For reservations or more information, please contact Lisa Bohlen at 810-220-1505 or at lbohlen@previewproperties.com
Friday, October 09, 2009
Thoughts On Livingston County Real Estate
1. It's getting harder to get deals closed. I've had three deals this year where the buyer's bank folded within 5 days of closing. That means they have to get approved by another lender which is usually not a problem. But two of these three were also using the Dept of Agriculture's Rural Development Program. It's a great option for buyers that qualify based on income. 100% financing, no PMI - what a deal! But it's so popular in my area that the backlog to process has grown.
Banks usually give you a 45 day window to close on a foreclosed property. I've had to get extensions because of Rural Development processing delays. Most of the time that means a $100/day charge to the buyers and one deal fell apart because of that extra cost (20 days x $100/day=$2,000 more).
If you're near to closing, you're likely at 30 days already. If your lender shuts its doors (or the precursor of not taking any more mortgage applications) and you have to switch, it's a real challenge. You find out who the good loan reps are when you get into this kind of situation.
2. Prices are still dropping. Let's face it. Buyers rule. It doesn't matter what the appraisal says a house is worth. You have to price a home well enough to get a lot of buyers through it. When it gets to the right price you get a good offer, or even multiple offers. Some buyers are unrealistic in their (lowball) assessment of value, but those that are tired of looking at homes that need a ton of work will pay a higher price for an updated, well-maintained home. It may still not be at the full appraised value, but it's usually not unrealistically low. A well-motivated seller will make it happen in most cases.
3. Sales numbers are still pretty robust although the average and median prices are dipping due to the high number of foreclosed homes on the market. I've sold quite a few properties under $80,000 this year. many were not in horrible shape and were bought by parents for their young adult children. The plan is usually that the child will rent the home. If they decide to buy on their own in the future, the can work with the parent to buy that home or go out in search of a larger place on their own. The parent still has the property to generate rental income.
Banks usually give you a 45 day window to close on a foreclosed property. I've had to get extensions because of Rural Development processing delays. Most of the time that means a $100/day charge to the buyers and one deal fell apart because of that extra cost (20 days x $100/day=$2,000 more).
If you're near to closing, you're likely at 30 days already. If your lender shuts its doors (or the precursor of not taking any more mortgage applications) and you have to switch, it's a real challenge. You find out who the good loan reps are when you get into this kind of situation.
2. Prices are still dropping. Let's face it. Buyers rule. It doesn't matter what the appraisal says a house is worth. You have to price a home well enough to get a lot of buyers through it. When it gets to the right price you get a good offer, or even multiple offers. Some buyers are unrealistic in their (lowball) assessment of value, but those that are tired of looking at homes that need a ton of work will pay a higher price for an updated, well-maintained home. It may still not be at the full appraised value, but it's usually not unrealistically low. A well-motivated seller will make it happen in most cases.
3. Sales numbers are still pretty robust although the average and median prices are dipping due to the high number of foreclosed homes on the market. I've sold quite a few properties under $80,000 this year. many were not in horrible shape and were bought by parents for their young adult children. The plan is usually that the child will rent the home. If they decide to buy on their own in the future, the can work with the parent to buy that home or go out in search of a larger place on their own. The parent still has the property to generate rental income.
The Holidays Are Closing In!
After a summer of spring-like weather, here we are starting to feel like Fall. And looking like it, too. I couldn't help but to compare the sky one day last week with the appearance of winter snow clouds.
Quite striking. And of course, the fire bushes are turning bright red, maples transitioning into their fall palette and flocks of birds flying towards the south. Even the squirrels seem to have picked up their activity level lately. I hope that's not a harbinger of a hard winter. As much as I like all four seasons, last winter was a harsh kick in the behind after many years of being mild.
The season also brings to mind the coming holidays. My office, Preview Properties, always supports the Livingston County Association of Realtors (LCAR) spring food drive, Fill The Gazebo, for Gleaners Community Food Bank. Recently the barrels appeared again in the office and it reminded me that this is a time of year when people on a tight budget have extra bills. Heating and more electicity needs are usually at the top of the list and sometimes they don't have money to buy enough food.
At the local grocery this week, I noticed canned goods on sale for $0.39 each. I bought a case each of corn and green beans, and a couple of other sale items to drop off in the Gleaners collection bin. I urge you, too, to think about those struggling families and make a similar effort. It won't cost much, and your donation will go far.
If you're local to my area, feel free to drop off donations at our office at 130 W. Grand River, Brighton 48116, or at the Gleaners Community Food Bank on Sterling Drive, off Dorr Rd just south of Grand River Ave.
Quite striking. And of course, the fire bushes are turning bright red, maples transitioning into their fall palette and flocks of birds flying towards the south. Even the squirrels seem to have picked up their activity level lately. I hope that's not a harbinger of a hard winter. As much as I like all four seasons, last winter was a harsh kick in the behind after many years of being mild.
The season also brings to mind the coming holidays. My office, Preview Properties, always supports the Livingston County Association of Realtors (LCAR) spring food drive, Fill The Gazebo, for Gleaners Community Food Bank. Recently the barrels appeared again in the office and it reminded me that this is a time of year when people on a tight budget have extra bills. Heating and more electicity needs are usually at the top of the list and sometimes they don't have money to buy enough food.
At the local grocery this week, I noticed canned goods on sale for $0.39 each. I bought a case each of corn and green beans, and a couple of other sale items to drop off in the Gleaners collection bin. I urge you, too, to think about those struggling families and make a similar effort. It won't cost much, and your donation will go far.
If you're local to my area, feel free to drop off donations at our office at 130 W. Grand River, Brighton 48116, or at the Gleaners Community Food Bank on Sterling Drive, off Dorr Rd just south of Grand River Ave.
Thursday, July 30, 2009
Great Deals
Money is tight for a lot of folks. Here are a few great deals that
I've found in the Livingston County area, which mayhelp you stretch
your dollars.(note:prices below are correct at the time of this blog posting-check
for current prices before driving to them.)
Hair cuts/hair care.Brighton School of Cosmetology offers $6 basic hair cuts. Some fancy ladies treatments may be a bit more but are far cheaper than the local styling salon. They also do manicures and pedicures. Students are doing the work under the suprvision of their instructors. Disclaimer: What's left of my hair is definitely 'low maintenance'. I do know other guys that have more challenging styles who think the service and value are definitely here. It's worth a look. Walk-ins only,approximate hours are 10am-3:30 pm. School is closed on weekends, Holidays and days when Brighton District Schools are closed. 10543 Citation Drive, behind the Kensington Ice House, off Grand River just
east of US-23.
Golf.It's hard to beat these two for a driving range. Oak Valley
Entertainment at 10910 Whitmore Lake Rd, Brighton 48116 (just
north of M-36), has $9 large buckets (90 balls). They use higher end
balls which are washed after being retrieved. Tuesdays between 11 am
and 2:30 pm the buckets are half price! Pro shop, instruction, other
promos - see their web site.
Chemung Hills Golf
Course has $6 large buckets and $3 small buckets all of the time.
What a great value! They have Junior Golf lessons some mornings from
9-11am, so the range may be closed at those times - call ahead. Also a
pretty good rate for 9 holes of golf on weekdays, just $15 with a
cart.
Faulkwood Shores Golf
Club has a very nice course and great prices, too. 9 holes
walking is just $12 and they have specials that are even better.
Example - July 2009 9 holes walking price is just $5!!
Movies.MJR" Theatres
Brighton have some great reduced rates. Fri-Sun before noon,
tickets are just $4. Try the $4.50 Twilight shows (4-6pm) if you
can't get there before noon.
Building Supplies/Furnishings.Habitat For Humanity, 7198 Grand River Ave, Brighton
48114,has a home center where they sell surplus building and hardware
items for very affordable prices. Some furniture is also in the
showroom. Tile, wallboard, light fixtures, cabinets, appliances - you
name it. If your budget is tight and you have a remodeling project
planned, it's worth a look. Hours are 9-5 M-F and 9-2 Saturday.
General Entertainment. Brighton Kiwanis have free Sunday evening concerts at the gazebo in downtown Brighton through August 30th. Bring your own chairs. Varied entertainment (musical), local restaurants are open. Enjoy!!!
I've found in the Livingston County area, which mayhelp you stretch
your dollars.(note:prices below are correct at the time of this blog posting-check
for current prices before driving to them.)
Hair cuts/hair care.Brighton School of Cosmetology offers $6 basic hair cuts. Some fancy ladies treatments may be a bit more but are far cheaper than the local styling salon. They also do manicures and pedicures. Students are doing the work under the suprvision of their instructors. Disclaimer: What's left of my hair is definitely 'low maintenance'. I do know other guys that have more challenging styles who think the service and value are definitely here. It's worth a look. Walk-ins only,approximate hours are 10am-3:30 pm. School is closed on weekends, Holidays and days when Brighton District Schools are closed. 10543 Citation Drive, behind the Kensington Ice House, off Grand River just
east of US-23.
Golf.It's hard to beat these two for a driving range. Oak Valley
Entertainment at 10910 Whitmore Lake Rd, Brighton 48116 (just
north of M-36), has $9 large buckets (90 balls). They use higher end
balls which are washed after being retrieved. Tuesdays between 11 am
and 2:30 pm the buckets are half price! Pro shop, instruction, other
promos - see their web site.
Chemung Hills Golf
Course has $6 large buckets and $3 small buckets all of the time.
What a great value! They have Junior Golf lessons some mornings from
9-11am, so the range may be closed at those times - call ahead. Also a
pretty good rate for 9 holes of golf on weekdays, just $15 with a
cart.
Faulkwood Shores Golf
Club has a very nice course and great prices, too. 9 holes
walking is just $12 and they have specials that are even better.
Example - July 2009 9 holes walking price is just $5!!
Movies.MJR" Theatres
Brighton have some great reduced rates. Fri-Sun before noon,
tickets are just $4. Try the $4.50 Twilight shows (4-6pm) if you
can't get there before noon.
Building Supplies/Furnishings.Habitat For Humanity, 7198 Grand River Ave, Brighton
48114,has a home center where they sell surplus building and hardware
items for very affordable prices. Some furniture is also in the
showroom. Tile, wallboard, light fixtures, cabinets, appliances - you
name it. If your budget is tight and you have a remodeling project
planned, it's worth a look. Hours are 9-5 M-F and 9-2 Saturday.
General Entertainment. Brighton Kiwanis have free Sunday evening concerts at the gazebo in downtown Brighton through August 30th. Bring your own chairs. Varied entertainment (musical), local restaurants are open. Enjoy!!!
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