January 19th, 2012
By Donna Levos Coldwell Banker Weir Manuel
This past year, Coldwell Banker Weir Manuel recognized an opportunity to upgrade our customer service experience by implementing Pulse, an exciting technology tool that tracks real estate transactions, one milestone at a time.
As many of you who have already used Pulse know, it is the first system to fully engage both agents and clients via an online account that provides up-to-the-minute information on our listings, 24 hours a day.
Your sellers can view marketing information on the home, see agent activity such as scheduled showings, and have access to real time MLS data about competitive homes for sale in that market. Pulse is also helping these clients keep track of documents, offers and price adjustments.
A new feature recently added to Pulse allows your buyers to view active listings, or to request a showing. Buyers can also log into their account at any time to side-by-side comparison shop the homes you’ve showed them.
Our CEO, Kelly Sweeney recently explained why we adopted this particular system: “Pulse is the best transaction management system I’ve seen because it is so much more than what the industry has always considered transaction management. We use Pulse to enforce internal business rules, to improve affiliate business compliance, eliminate duplicate data entry, and to consolidate data from many systems that previously did not work together. In the end it enables customer reporting that our agents use to redefine the consumer experience.”
Finally, while Coldwell Banker Weir Manuel is the largest of twenty-five brokerages nationwide who currently utilize Pulse, we are the only brokerage in Michigan currently offering this service to our agents and customers.
For more information on using the Pulse system visit www.pulserealtysoftware.com
Posted in Coldwell Banker Weir Manuel, automated system, buy a home, coldwell banker, homes for sale, housing, online account, process improvement, real estate, real estate market, real estate technology, sell a home | Comments Off
January 6th, 2012
by Kelly Sweeney, CEO, Coldwell Banker Weir Manuel
Due to the number of bank owned and other non-homestead properties being sold today, the May 1 deadline for filing for the Principal Residence Exemption (PRE) has become problematic. Many would be purchasers cannot qualify for a mortgage loan without the significant property tax reduction available under the PRE.
Currently, a purchaser must file for the PRE before May 1 to receive the tax reduction on the following July and December property tax bills. Purchasers closing a sale after May 1 must wait for an entire year to file and will pay much higher property taxes during their first year of ownership. Mortgage lenders must use this high property tax amount when calculating loan qualification ratios. The home lending industry reports that the May 1 filing deadline is preventing many first-time and repeat buyers from getting mortgage loans and, therefore, completing home purchases.
The Michigan Association of Realtors is supporting legislation which will eliminate the May 1 deadline and allow purchasers to file at anytime throughout the year. The legislation is known as House Bill 4446 and Senate Bill 349. Senate Bill 349 has passed the Senate Finance Committee and is on the Senate floor for consideration.
Although this legislation is being opposed by many local governments due to purported administrative problems, the economic benefit to our economy has been recognized by the state legislature and adoption is likely.
Posted in Coldwell Banker Weir Manuel, Michigan Legislature, Michigan Real Estate Market, coldwell banker, homestead properties, non-homestead properties, real estate, real estate market, taxes | Comments Off
January 6th, 2012
By Donna Levos Coldwell Banker Weir Manuel
Recently our CEO Kelly Sweeney shared a quote in his sales meeting address about renting vs. buying:
“If you buy a home, you get to make mortgage payments for 30 years and then you get your money back through the asset you own. If you pay rent for thirty years you get to keep paying rent for the rest of your life!”
Have your clients considered homeownership as part of their retirement strategies?
Regardless of age, our clients should be thinking about retirement. Do they want to able to retire when and how they want? If so, they should consider the following factors:
Homeowners dodge rent inflation
Let’s talk about inflation. If rents increase annually at the typical 3.2%, a $1,500 rent payment will cost a renter $900,000 over 30 years. A homeowner paying that same amount in a fixed-rate mortgage payment would pay $540,000 and would be finite with the final mortgage payment.
Homeowners build equity over time
A renter will build no equity by writing that rent check for years. In contrast, a $300,000 home appreciating at a conservative 1% growth rate over 30 years will gain a $100,000 nest egg for the homeowner.
Homeowners get tax help
Consider the tax benefits involved in homeownership. By writing off your mortgage interest and property tax deductions, you are taking advantage of additional opportunities to save money.
Homeownership as a legacy
Finally, there are some things you can’t put a price tag on. For some people, the satisfaction of leaving their home to their loved ones is priceless. Additionally, unlike their renting counterparts, homeowners are able to customize, decorate and make improvements to their homes.
Just remember: long–term home ownership can provide retirement security through the growth of equity.
Posted in Coldwell Banker Weir Manuel, Investing in real estate, Michigan Real Estate Market, buy a home, coldwell banker, commercial real estate, real estate, real estate market, retirement strategy, sell a home | Comments Off
January 6th, 2012
Our local market has a low supply of move-in ready homes, and many serious buyers with pent-up desire to purchase. These conditions are the perfect storm for a seller to receive multiple bids. How well you weather that storm as a buyer’s or seller’s agent depends on how well you communicate and set your clients’ expectations.
Let’s take a look at multiple bids from both the buyer’s and seller’s points of view:
The Seller’s Agent:
Your seller is excited that there are multiple offers on his home. You offer suggestions such as negotiating with the other agents to make the weaker offers stronger, or asking all of the buyers to bring back their ‘highest and best’ offers. But in the end, your role is to communicate the potential risks and rewards involved in accepting any of the offers, and leave the decision to your seller. You may also want to caution the seller that while he sits in the driver’s seat, dragging out the process may alienate his buyers.
The Buyer’s Agent:
This is probably the more emotional end of the deal. Your buyer has fallen in love with a house and has written an offer, only to find that the seller is entertaining multiple bids. Your buyer needs to be patient, have a thick skin and set limits about how high he is prepared to bid based on his budget. Good communication and a solid strategy can help alleviate emotions and keep everyone focused on the goal: getting the house.
Cash Is King:
Buyers that can bring cash into a multiple bidding situation have a serious leg up on the competition. In December, a CBWM agent showed a $445,000 house to his clients on a Saturday, knowing that all offers had to be in by the following Monday. His clients immediately wrote an offer for $458,000 with 40% down. They were dismayed when another buyer won the house by offering less, but paying with cash. A cash offer is often more attractive to the seller because it poses the least amount of risk.
Some strategies to help your buyer make a competitive offer:
- Present your client’s pre-approval letter and make sure it includes a verification of income, credit and assets
- Encourage flexibility about occupancy (many buyers are offering 30 days occupancy)
- Suggest that your buyer put down an earnest money deposit (at least 3%)
- As a last resort, a buyer can appeal to a seller by writing a letter explaining how interested he is in the home.
Time is of the essence:
While time is always of the essence in real estate, it is especially true in today’s market. As real estate professionals, we would be remised if we did not instill the proper sense of urgency in our clients. This sense of urgency is important whether your client is the one making or accepting an offer.
Consider this quote when advising your clients: “The house you saw today that you want to think about tonight and make an offer on tomorrow, was seen by someone yesterday who is writing an offer on it today.”
Tags: Buy Homes, Michigan Real Estate, real estate
Posted in Coldwell Banker Weir Manuel, Michigan Real Estate Market, Multiple Bids, Multiple Offers, buy a home, coldwell banker, homes for sale, housing, real estate, real estate market, sell a home | Comments Off
January 5th, 2012
Betsy and Cheryl-
I want to take a moment and thank you and your team for showing up the other title company and handling this short sale closing so smoothly. YOU SAVED THE DEAL!
Even the other agent at Pru was impressed (he should be!) and the buyer and seller were not only grateful, but relieved that they were now able to close and move on.
Glenn Champion and his office were prudent to think ahead and few months back and instruct us all regarding the strident Freddie Mac Short Sale Addendum form that so many other smaller title companies genuflect away from, and stop the transaction cold. We overcame that obstacle and are now able to deal with such a difficult form. Thank goodness for this real estate company and umbrella of services and teams of excellence.
Anyway- I hope that you continue to be the bench mark of what a forward thinking title company is, especially in today’s hostile real estate environment.
Tally-Ho.
Bob Bowden
Realtor
Macomb Office
Posted in real estate | Comments Off
December 15th, 2011
By Daniel Duggan
The slide in residential home sales that started in August continued into November, according to data released today.
Although the number of sales increased year over year, the numbers have slipped each month since August, according to data from Farmington Hills-based Realcomp II Ltd. for Livingston, Macomb, Oakland and Wayne counties.
The median sale price in November was flat compared with October and up 4.5 percent over 2010.
It’s typical to have sales slow in the fall, then spike in the spring, said Kelly Sweeney, CEO of Birmingham-based Coldwell Banker Weir Manuel Realtors.
On the whole, he said, this year should be about the same as last year — which is an improvement, because many of the 2010 deals were driven by government incentives.
In preparing a budget for next year, Sweeney said, his firm anticipates residential growth of 2 percent to 3 percent with an aggressive estimate of 4 percent to 5 percent.
“When we did our budget three, four years ago, we were looking at how much of a decrease it was going to be, how many people we needed to let go and how many offices needed to close,” he said. “It’s a return to a much more manageable situation. Things are going in the right direction now.”
In November, there were 4,094 residential sales, down from 4,176 in October and up from 3,876 in November 2010, according to Realcomp.
The median sale price was $70,000 in November, identical to October. The median sale price in November 2010 was $67,000.
Tags: Buy Homes, Homes, Michigan, Michigan Real Estate, New Homes, real estate
Posted in Coldwell Banker Weir Manuel, Michigan Real Estate Market, buy a home, coldwell banker, homes for sale, housing, real estate, real estate market, sell a home | Comments Off
December 6th, 2011
As we look toward a real estate recovery in Michigan, we know that communities must find ways to create jobs and support local businesses. Grand Rapids has been at the forefront of Michigan’s comeback for several years now. The latest bright spot on its resume is the purchase of a foreclosed property that has been turned into what some are calling a “small-business incubator.”
This past summer, the LINC Development Center opened its doors in the Madison Square neighborhood. LINC is a community development program whose services include helping local entrepreneurs launch their small businesses by providing space to rent at a discounted rate, as well as other wrap-around services such as legal advice and accounting. LINC also offers assistance with foreclosure prevention, housing counseling, and rental property management.
Daryl Ross, LINC’s co-executive director, in a recent interview for The Grand Rapids Press said: “Micro-business on a neighborhood level is definitely going to be the way that Michigan comes back.”
The LINC building itself is a comeback story in terms of real estate. The space was the former library at the corner of Madison and Hall. The empty building (which was foreclosed upon four times) was an eye sore for eight years. Now, after a $1.7 million renovation, the building has opened once again with renewed purpose.
In addition to growing new businesses, Grand Rapids also plans to continue it rich agricultural heritage by nurturing plans to open an urban farmers market. Six vacant buildings will soon fall to the wrecking ball, to make room for a new 130,000-square-foot indoor/outdoor marketplace. It will sit on approximately 3.5 acres, and will include an outdoor seasonal farmers’ market, a rooftop greenhouse, a pint-sized children’s kitchen, year-round space for vendors, and restaurants. The city projects that the market will create up to 270 full-time jobs and possibly open by spring of 2013.
These are examples of just a few of the many property renewal success stories out of Grand Rapids. Hopefully, other Michigan cities will look to them for inspiration. Creating jobs, nurturing local businesses and increasing consumer traffic can only mean good things for both residential and commercial real estate in our communities.
Tags: Buy Homes, Community Center, GRAND RAPIDS, Homes, Michigan, Michigan Real Estate, New Construcation, real estate, Urban Renewal
Posted in Coldwell Banker Weir Manuel, GRAND RAPIDS, Michigan Real Estate Market, Uncategorized, Urban Renewal, buy a home, coldwell banker, housing, real estate | Comments Off
December 6th, 2011
There is pent-up demand out there for buyers to own a newly-constructed home. The same factors that have helped Michigan home sales overall (such as low interest rates, and lack of inventory) are propelling many buyers toward new construction.
With new construction being more affordable than ever, buyers are lining up as they did recently at a national sales event for Toll Brothers in Novi to put a deposit down on a new home.
Pulte is also experiencing brisk sales. The company recently reported a 371% increase in dollar volume sales in the past year.
Another silver lining in the current housing market is that land costs and labor costs have come down, allowing more builders to break ground on new projects.
Toll Brothers and Pulte for instance, are said to be hunting for major land acquisition sites in several of our markets.
So with all this building activity and opportunity, how can we as Realtors add value to the buyer’s experience?
Here are a few ideas:
Know the Latest on Lending
Know what new lending products exist and help your buyer make a wise choice. As the demand for new construction rises, many lenders are recognizing that they need to provide updated lending products to buyers.
Read the fine print. Too many buyers don’t carefully read (or sometimes don’t fully understand) their building contract. As a Realtor you are in a position to catch things they may have missed. Sometimes builders expect the buyer to pick up the bill for transfer taxes and title, which is fine as long as the buyer is aware of this expectation.
Incentives: Make buyers aware of builder incentives offered as part of the negotiating process. For example, Pulte and Toll Brothers currently offer a $78,000 allowance toward upgrades, lot choice or other improvements. Some buyers will tend toward unnecessary upgrades. Help them make smart choices about what type of upgrades really add value to their new home.
Set their expectations: Finally, one of the most frustrating things for a buyer building a new home is miscommunications about expectations during the building process. Taking our clients through the new build process step-by-step to set realistic expectations will improve their experience.
Over half of all new construction buyers will hire a Realtor to aid them in their purchase. We are in a unique position to offer support and experience working with builders to create a positive outcome in what can often be a stressful process.
Tags: Builders, Buy Homes, Homes, Michigan, Michigan Real Estate, New Construcation, New Homes, real estate
Posted in Builders, Coldwell Banker Weir Manuel, Construction, Michigan Real Estate Market, New Construction, buy a home, coldwell banker, homes for sale, housing, real estate, real estate market, sell a home | Comments Off
Kelly M. Sweeney is the Chief Executive Office of Michigan-based Coldwell Banker Weir Manuel.