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

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

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

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

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

Average Down Payments Reported; Rents Are Increasing

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

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

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

Livingston County Market Report - Through April 2011

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

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

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

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

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

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

New Listing - 10390 Nine Mile, Whitmore Lake MI 48189

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

Michigan Court of Appeals ruling could halt some foreclosures

Michigan Court of Appeals ruling could halt some foreclosures

Strategic Defaulters - FICO Has Your Number

OK, so they don't have your actual (FICO Score) number, but they do have a profile of who is most likely to use strategic default as an exit strategy. You manage your credit better than the average consumer, have lower revolving balances and generally, you don't exceed your credit card balances.

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.

Great Livingston County Deals - Part II



Hump Day Strikes Again!

 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. 

'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?

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.

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.

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.



photo-Bob Smith

 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.

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.

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.

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.

Selling You Home In Today's Market - Free Seminar

Should you rent your home or sell it? Or work with your bank to modify your loan? What is your house worth?

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!

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.

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

Great New Condo Listing

This very well maintained 2 bedroom, 2 bath condo is near Palmer and I-275 in Canton.  All appliances stay, community has inground pool, clubhouse and fitness center.  Adjacent to Fellows Creek Municipal Golf Course. Great west suburban location.  Community not FHA certified, so cash or conventional mortgage offers only, please. Great for affordable living or as in investment.  Call me for details.

http://www.realestatemich.com/10/listing/20580

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

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.

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.

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.