Selling a home can be a daunting task in the current market. Now it is even tricker with the onset of winter. While the location of your home is the most important feature to most buyers, it is the one thing that cannot be changed. There are plenty of other factors that you DO have control over that will enhance your ability to sell.
First of all, curb appeal. When a potential buyer pulls up in front of your home what do they see? Rake up the leaves, take out the remnants of last summer's flowers and trim up the perennials. Even though it is the time of year all the vegitaion tends to fade away, a tidy appearance of what remains will be an inviting view from the street. Accentuate your landscape with the use of creative up-lighting. Also pay attention to your entryway. The front door tends to be the focal point of a home. A welcome appearance to your front door will speak volumes to those entering! Make a great first impression.
The first step inside your home needs to have "wow" factor. A clean and fresh entry is a necessity! Organization and proper clutter reduction throughout the home is at the top of the list of things every home seller must do. Remove personal items including family photos, pet beds and children's items. Decorate in neutral colors using mirrors to enhance the sizes of the rooms. Accessorize tastefully, in this case less is always more. You want a potential buyer to be able to visualize their own items in your home but if they are overwhelmed by your belongings they may not be able to imagine anything at all.
Above all else, be realistic. Price, terms and condition are all factors in the home selling equation. To help you determine what those things are, choose a professional REALTOR to assist you. A true professional will know the facts about your local market and can recommend a sound marketing plan to help get you the results you desire. Homes are selling and with the right tools and attitude, you can achieve success.
Friday, November 06, 2009
Wednesday, October 14, 2009
September Market Update
The big continuing question is: Are the last four months a real bottom and bounce up or just an illusion? The answer is a little of both. There is no question we are at a bottom, the bigger issue is how long will we stay here and is there a chance of a second "dip" down (i.e., a "W" vs. a "V" recovery). The second dip will be largely dependent on to what degree the government extends or adds to the current housing stimulus efforts. A reduction of the stimulus will cause a downward dip.
If there ever was an example of government dollars and intervention at work, the current housing market is it. There are four key government support elements at play and a fourth private sector effort that contribute to the improving housing numbers we are seeing both in Michigan and across the country.
1) The First Time Home Buyer Tax Credit, creating over 400,000 sales out of a national total of 1.4 million (both NAR and Moody's stats)
2) The government's financial support of Fannie Mae, Freddie Mac and the FHA - Contrary to what the average person may think, these are the chief buyers and creators of mortgage products, not banks. FHA mortgages constitute nearly 70% of all John Adams mortgages.
3) Low interest rates, created by a near zero % federal funds rate and the government's purchase of most of the mortgages being made (since other financial institutions don't want to buy them, without the government purchase, rates would have to rise to entice others to buy).
4) The banks current direction, with both a stick and carrot from the government, of a slower release of foreclosed inventories into the market, helping to stabilize home values.
Keep in mind these improving numbers have not yet moved up enough into the middle to upper range home values. That will not really take hold until employment stabilizes, giving two income families (one of the core engines to move up buyer growth) the confidence to sell and buy and the mass of former owners, now renters, the ability to become home owners again.
In Michigan, the overall market in the next 12 months is most likely to be either the same (extended stimulus) or down (not extended), so regardless of the outcome of the stimulus programs, Sellers still need to price aggressively, focusing as much on current competition as comparable sales. Buyers should be aware that an extended stimulus will benefit them but it will, combined with the banks holding back their inventories, also help dry of the current supply, making the best buys more scarce.
As a company, beginning in June, each month has been successively better for us, extremely hectic, but better. The sales are unprecedented in their complexity and in many cases, anxiety. Collectively, each of us, our clients, mortgage, title and staff feel like we are walking up a sand dune, three steps forward and two back. But we are making great progress and in that effort helping people that have never in the past 70 years needed us more.
Here are our numbers for the month, as usual, better than anyone else. Also two very important bragging points, our Traverse City offices were named the Hottest Real Estate Company buy the TC Record Eagle and John Adams is now the number one FHA lender in purchase mortgages in Southeast Michigan!
If there ever was an example of government dollars and intervention at work, the current housing market is it. There are four key government support elements at play and a fourth private sector effort that contribute to the improving housing numbers we are seeing both in Michigan and across the country.
1) The First Time Home Buyer Tax Credit, creating over 400,000 sales out of a national total of 1.4 million (both NAR and Moody's stats)
2) The government's financial support of Fannie Mae, Freddie Mac and the FHA - Contrary to what the average person may think, these are the chief buyers and creators of mortgage products, not banks. FHA mortgages constitute nearly 70% of all John Adams mortgages.
3) Low interest rates, created by a near zero % federal funds rate and the government's purchase of most of the mortgages being made (since other financial institutions don't want to buy them, without the government purchase, rates would have to rise to entice others to buy).
4) The banks current direction, with both a stick and carrot from the government, of a slower release of foreclosed inventories into the market, helping to stabilize home values.
Keep in mind these improving numbers have not yet moved up enough into the middle to upper range home values. That will not really take hold until employment stabilizes, giving two income families (one of the core engines to move up buyer growth) the confidence to sell and buy and the mass of former owners, now renters, the ability to become home owners again.
In Michigan, the overall market in the next 12 months is most likely to be either the same (extended stimulus) or down (not extended), so regardless of the outcome of the stimulus programs, Sellers still need to price aggressively, focusing as much on current competition as comparable sales. Buyers should be aware that an extended stimulus will benefit them but it will, combined with the banks holding back their inventories, also help dry of the current supply, making the best buys more scarce.
As a company, beginning in June, each month has been successively better for us, extremely hectic, but better. The sales are unprecedented in their complexity and in many cases, anxiety. Collectively, each of us, our clients, mortgage, title and staff feel like we are walking up a sand dune, three steps forward and two back. But we are making great progress and in that effort helping people that have never in the past 70 years needed us more.
Here are our numbers for the month, as usual, better than anyone else. Also two very important bragging points, our Traverse City offices were named the Hottest Real Estate Company buy the TC Record Eagle and John Adams is now the number one FHA lender in purchase mortgages in Southeast Michigan!
Thursday, October 01, 2009
FAQ about Foreclosures and HUD Homes
As the fall sets in and the year comes to a close, the First Time Homebuyer Tax Credit is also winding down. To take advantage of the credit you must get your home under contract within the next few weeks. Many buyers are finding themselves in a position where a foreclosure is the home of choice, even if that was not the original intention. Here are some frequently asked questions and answers about foreclosures that may be helpful in this crunch-time...
Q: What does "REO" mean?
A: Real Estate Owned. It's the term the banks use to identify their foreclosure properties. These properties are also considered distressed properties.
Q: How is a HUD property different from any other foreclosure?
A: HUD homes are FHA-insured loan foreclosures. The government owns them. The properties are classified as "insured" or "uninsured". Those that are insured are in good repair and FHA will insure a new loan for a new buyer for the home. Uninsured properties are typically fixer-uppers, and the buyer will be responsible for his or her own financing. Find out more on their website at www.hud.gov.
Q: What are some general guidelines for your market?
A: Many of the properties that are listed require an earnest money deposit of $1000 and are sold "as is". Many REO properties will sell for cash or with a variety of financing including FHA, VA, and conventional financing. One should remember that many times an REO property will be in a somewhat distressed condition.
Q: How are foreclosure properties identified on the MLS?
A: Certain MLS systems have a selection box on their profile form for bank-owned property and others do not. They are listed just like any other property. The best way to find them is by working with a real estate broker who specializes in this kind of home, or by searching the web. Search available listings through www.ourforeclosurehomes.com.
Q: How will the bank determine the selling price? Will banks accept less?
A: When negotiating with asset managers at a bank for the purchase of a foreclosure, they are considered professional sellers. An asset manager will work hard before a property is ever listed to determine fair market value. They order appraisals and hire a broker to advise them about the property's condition and value. Then, they price them accordingly and may or may not accept less.
Q: Will the banks repair the properties that are distressed?
A: Sometimes. The asset manager in charge of the property will confer with his broker prior to listing it to determine if it is a good candidate for repair or rehab. He will then proceed with a marketing strategy - either "as-is" or "repaired". The as-is properties are priced much lower, and the bank typically does not make repairs for these. They feel any repairs should be the responsibility of the buyer since the property's price is already discounted.
If you have any further question, please contact us and we will gladly assist you.
Q: What does "REO" mean?
A: Real Estate Owned. It's the term the banks use to identify their foreclosure properties. These properties are also considered distressed properties.
Q: How is a HUD property different from any other foreclosure?
A: HUD homes are FHA-insured loan foreclosures. The government owns them. The properties are classified as "insured" or "uninsured". Those that are insured are in good repair and FHA will insure a new loan for a new buyer for the home. Uninsured properties are typically fixer-uppers, and the buyer will be responsible for his or her own financing. Find out more on their website at www.hud.gov.
Q: What are some general guidelines for your market?
A: Many of the properties that are listed require an earnest money deposit of $1000 and are sold "as is". Many REO properties will sell for cash or with a variety of financing including FHA, VA, and conventional financing. One should remember that many times an REO property will be in a somewhat distressed condition.
Q: How are foreclosure properties identified on the MLS?
A: Certain MLS systems have a selection box on their profile form for bank-owned property and others do not. They are listed just like any other property. The best way to find them is by working with a real estate broker who specializes in this kind of home, or by searching the web. Search available listings through www.ourforeclosurehomes.com.
Q: How will the bank determine the selling price? Will banks accept less?
A: When negotiating with asset managers at a bank for the purchase of a foreclosure, they are considered professional sellers. An asset manager will work hard before a property is ever listed to determine fair market value. They order appraisals and hire a broker to advise them about the property's condition and value. Then, they price them accordingly and may or may not accept less.
Q: Will the banks repair the properties that are distressed?
A: Sometimes. The asset manager in charge of the property will confer with his broker prior to listing it to determine if it is a good candidate for repair or rehab. He will then proceed with a marketing strategy - either "as-is" or "repaired". The as-is properties are priced much lower, and the bank typically does not make repairs for these. They feel any repairs should be the responsibility of the buyer since the property's price is already discounted.
If you have any further question, please contact us and we will gladly assist you.
Tuesday, August 25, 2009
The Time is Now! The 2009 Tax Credit is Winding Down. Don't Miss Out On Your $8,000!
If you are a first time home buyer seeking to take advantage of the possible $8,000 Tax Credit, you may want to get serious. It is officially time to make your move. The closing deadline is November 30, 2009. As of the time of this writing (Aug. 25) you have only 65 business days to close your purchase.
Let's take a look at a practical time line from house hunting to final signatures at the closing table...
Day 1 - 10 - Tour homes and find your dream home then write up an offer.
Day 10 - 17 - Negotiate and get final acceptance signatures.
Day 17 - 30 - Conduct inspections, formally apply for your mortgage, obtain an appraisal and make any necessary repairs.
Day 30 - 40 - Re-inspections and underwriter approvals. Obtain clear to close from all parties.
Day 40 - 45 - Do your final walk-thru and close.
The above is an "ideal" situation with an average time frame. The selling or buying of a home is not always ideal. All too often appraisals take longer than expected, an inspection turns up an unknown issue that must be dealt with prior to closing or funds get delayed the day of closing. Be prepared for these kinds of bumps in the road along the way.
Additionally, there are 4 National Holidays between now and November 30! That's right, we have Labor Day, Columbus Day, Veteran's Day and Thanksgiving to look forward to. You may want to consider this in your personal time frame to be safe. A proactive plan is necessary at this point. Also take into consideration that Wednesday, November 25th could be a 1/2 day for Banks and Title Companies, Thursday is Thanksgiving, Friday is an unofficial holiday making closings unreliable and Monday the 30th is the deadline which makes closing on that day a dangerous gamble. So, if you must wait until November to close - make it early in the month, you'll be glad you did!
Let's take a look at a practical time line from house hunting to final signatures at the closing table...
Day 1 - 10 - Tour homes and find your dream home then write up an offer.
Day 10 - 17 - Negotiate and get final acceptance signatures.
Day 17 - 30 - Conduct inspections, formally apply for your mortgage, obtain an appraisal and make any necessary repairs.
Day 30 - 40 - Re-inspections and underwriter approvals. Obtain clear to close from all parties.
Day 40 - 45 - Do your final walk-thru and close.
The above is an "ideal" situation with an average time frame. The selling or buying of a home is not always ideal. All too often appraisals take longer than expected, an inspection turns up an unknown issue that must be dealt with prior to closing or funds get delayed the day of closing. Be prepared for these kinds of bumps in the road along the way.
Additionally, there are 4 National Holidays between now and November 30! That's right, we have Labor Day, Columbus Day, Veteran's Day and Thanksgiving to look forward to. You may want to consider this in your personal time frame to be safe. A proactive plan is necessary at this point. Also take into consideration that Wednesday, November 25th could be a 1/2 day for Banks and Title Companies, Thursday is Thanksgiving, Friday is an unofficial holiday making closings unreliable and Monday the 30th is the deadline which makes closing on that day a dangerous gamble. So, if you must wait until November to close - make it early in the month, you'll be glad you did!
Monday, August 10, 2009
Pending Home Sales on the Rise Again!
Pending home sales are up for the fifth month in a row, nationally. This information is courtesy of a News Release by the National Association of REALTORS(R) on August 4. This statement is a result of the analysis of pending sales in June 2009 vs. June 2008. During this time period, the number of purchase agreements signed is up by 6.7%. This increase is again attributed to the $8,000 tax credit available to first time home buyers and to the availability of affordable housing.
To read the entire report please click here.
On a more local note, the under $100,000 market is selling strong in the Oakland, Macomb, Livingston, Washtenaw and parts of Wayne Counties (minus the City of Detroit and Gross Pointe areas). The median sales price in these areas (with the exception of Oakland county) continues to plummet, enabling the sell-off of these homes. This sector of the market continues to dominate the closed sales transactions with huge increases over this time last year. These same areas in the over $100,000 market are showing a decrease in the number of closed transactions over last July. Conversely, across the board there is a decrease in the number of homes for sale. The age old theory of supply and demand plays a major part in this market, these trends mark a small step in the direction of recovery.
To view the latest stats please click here.
To read the entire report please click here.
On a more local note, the under $100,000 market is selling strong in the Oakland, Macomb, Livingston, Washtenaw and parts of Wayne Counties (minus the City of Detroit and Gross Pointe areas). The median sales price in these areas (with the exception of Oakland county) continues to plummet, enabling the sell-off of these homes. This sector of the market continues to dominate the closed sales transactions with huge increases over this time last year. These same areas in the over $100,000 market are showing a decrease in the number of closed transactions over last July. Conversely, across the board there is a decrease in the number of homes for sale. The age old theory of supply and demand plays a major part in this market, these trends mark a small step in the direction of recovery.
To view the latest stats please click here.
Monday, July 27, 2009
June Market Recap
The state of Michigan has been weathering the real estate storm for quite some time now. For those of us who are watching it all play out, you may enjoy the positive news coming from the June 2009 statistics. For the under $100,000 market, Livingston County has exploded with activity showing a 176% increase in homes sold over the same period of 2008. The number of available homes is up by 5.3% in that same area for the same time period and price range while the median sale price has slipped by just under 5%. While not all areas have numbers as impressive as this, the tables below illustrate the activity and changes in the surrounding areas. Click the table to enlarge.
Will the rally continue? Will the upper-end price ranges see an increase? Only time will tell. Check back for July numbers in a few weeks…
->Data Sources: MiRealSource, Realcomp, Ann Arbor Area Board of REALTORS MLS, Paragon and Broker Metrics.
*Includes Grand Traverse, Kalkaska, Antrim, Leelanau and Benzie Counties, waterfront and vacant land.
Will the rally continue? Will the upper-end price ranges see an increase? Only time will tell. Check back for July numbers in a few weeks…->Data Sources: MiRealSource, Realcomp, Ann Arbor Area Board of REALTORS MLS, Paragon and Broker Metrics.
*Includes Grand Traverse, Kalkaska, Antrim, Leelanau and Benzie Counties, waterfront and vacant land.
Monday, July 06, 2009
Good News in Pending Sales; Concerns for Appraisals
For the 4th month in a row, May pending home sales were up. This continued rally is attributed to the combination of the first time home buyer's tax credit and the availability of affordable homes. The Midwest in particular experienced an increase of 11.4% over May 2008. This news is compliments of a Press Release by the National Association of REALTORS published July 1, 2009.
While this is a step in the right direction; there is concern over the number of pending homes that will result in a closing. The new appraisal rules could complicate or prohibit some of these sales from going to closing. As a home seller, it is recommended for you to obtain a current appraisal at the time of listing your home. While this appraisal is for your information only, it will give you a concrete answer to how your home will be evaluated by a professional, unbiased appraiser. As the issue of Short Sales and Foreclosed properties being used for comparison purposes continues to be a problem for traditional sellers, be sure the appraiser used is familiar with your area and uses the best comps available. Choosing an educated and resourceful lender may assist in facilitating a successful sale as well.
Overall, the number of homes for sale continues to be less than in the recent past with the market as a whole continuing to follow buyer's market trends. These along with low interest rates makes now a great time to buy or sell a home.
While this is a step in the right direction; there is concern over the number of pending homes that will result in a closing. The new appraisal rules could complicate or prohibit some of these sales from going to closing. As a home seller, it is recommended for you to obtain a current appraisal at the time of listing your home. While this appraisal is for your information only, it will give you a concrete answer to how your home will be evaluated by a professional, unbiased appraiser. As the issue of Short Sales and Foreclosed properties being used for comparison purposes continues to be a problem for traditional sellers, be sure the appraiser used is familiar with your area and uses the best comps available. Choosing an educated and resourceful lender may assist in facilitating a successful sale as well.
Overall, the number of homes for sale continues to be less than in the recent past with the market as a whole continuing to follow buyer's market trends. These along with low interest rates makes now a great time to buy or sell a home.
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