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Home sales in region continue decline in November but still better than a year ago!

Thursday, December 15th, 2011

By Daniel Duggan

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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.

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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

New Construction: Activity Brings Opportunities

Tuesday, 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.

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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

Short Sales: Communication is Key

Tuesday, December 6th, 2011

It has been estimated that 40% of all current real estate sold nationwide is distressed (REO or Short Sale).  Given that there are so many of these properties in our own markets, it is important that we stay informed, specifically on the ever-changing short sale process.

Working as a team

The good news about having dealt with so many short sales in the past few years is that Realtors, title companies, and lenders are working better together as a team to expedite the process.

The process has improved slightly, but has not gotten a whole lot quicker.  As lenders continuously put new procedures in place and the volume of these sales continues to increase, short sales are still running on average 3 to 6 months.

It is important to consider the advantages of working with a title company when negotiating a short sale. By utilizing the resources that our title company partners provide, you can recover some of your own time and reduce the liability risks for both yourself and your clients. Remember that you do not have to stand alone in this process.

Protecting everyone’s interests

Short sales can be a great opportunity for your client, if they are handled carefully. Here are some reminders and a recent change in the process:

Deed restrictions Agents need to communicate to their buyers that if there are deed restrictions on the property being purchased in a short sale, that many lenders are now requiring a 30 to 90 waiting period to re-sell the property. Freddie Mac specifically requires a 120 day waiting period.

Arms-length transactions Realtors need to require their sellers to be up front about selling their distressed property to relatives, friends or anyone they have known prior to the sale. The Realtor also has to disclose any relationship he may have to the buyer or seller. Failure to fully disclose these relationships can result in a fraudulent transaction. A short sale amongst parties that know each other can be approved in some cases, with full disclosure.

Short sale affidavit changes:

Finally, in response to requests form NAR and the American Land Title Association, Freddie Mac recently revised its mandatory short sale affidavit policy on November 18th, 2011. These changes were made in response to concerns over vague language in the previous affidavits which possibly put those signing at risk for liability.

(From the NAR website):  “The purpose of the affidavit is to prevent fraud by requiring the buyer, the seller, the real estate brokers, the escrow/closing agent, and any transaction facilitator to make various certifications (including that the short sale is an arm’s length transaction and the buyer will not resell within 120 days unless there are substantial improvements). Servicers are required to implement the changes by Jan. 1, 2012, but are encouraged to do so immediately. Each servicer covered by the policy must update its forms to comply with the revised policy.”

To view more information on the changes, go to: Realtor.org.

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Posted in Coldwell Banker Weir Manuel, Michigan Real Estate Market, Short Sales and Foreclosures, buy a home, coldwell banker, homes for sale, housing, real estate, real estate market, sell a home | Comments Off

Vacant Home Ordinances Complicate Transactions

Monday, March 22nd, 2010

We are currently witnessing a rash of new municipal ordinances dealing with vacant homes. Some municipalities believe that by regulating vacant homes, their potential negative impact on property values may be avoided.

These ordinances typically feature a registration process, registration fees and inspection fees. In some cases, municipalities are even going so far as to require buyers to acquire certificates of occupancy in order to move into a home which has been vacant for a specified period of time.
The public purpose behind most of these initiatives is to ensure that vacant homes do not become a negative influence to surrounding properties and neighbors. While this is a legitimate goal, it also appears that a few municipalities have chosen to use these ordinances as revenue generators and/or a method by which code inspector salaries can be supported.

Because the requirements under these ordinances vary greatly from town to town, there is no way to summarize the details of each here. It is important, however, for home sellers, home buyers and their real estate agents to be aware of them. The terms and conditions of a purchase agreement may be affected by these ordinance provisions in some cases.

The real estate transaction continues to get more complicated every day. It is our goal at Coldwell Banker Weir Manuel to continue to stay abreast of every new development that affects the sale or purchase of real property and advise our clients accordingly.

Posted in buy a home, sell a home | 2 Comments »

Is Homeownership Still Part of the American Dream?

Monday, March 15th, 2010

For some two hundred years, homeownership in this country was a desire of almost every American family. Due to the excesses of the past decade, some are now suggesting that the concept of homeownership should no longer be pursued.

We must be careful as a society that short term economic turmoil does not reset valued long-term thinking. The majority of Americans still hold homeownership sacred. Trulia just did a survey showing seventy seven percent of those questioned still believe that owning a home is a part of the American dream.

Some are questioning the American dream given that housing is in the midst of one of its worst markets ever. But the facts show that the last ten years have not treated the homeowner that badly. Obviously, people who purchased a home during the middle of the last decade have seen their value depreciate over the last several years. But, real estate was never seen as a good short-term investment.

If we look at housing values over the last 10 years, we find that even through these tough times real estate has averaged over fifty percent return as an investment.

The chart below compares real estate to other investments over those ten years.

Then why this challenge today? Well, at the turn of the century, when prices were appreciating in some areas by as much as 20% annually, many got caught up in the belief that housing values should double every few years for the rest of time. That belief created all sorts of reckless behavior.

Many purchased homes well beyond their financial means. Others decided that they would gamble on future values and interest rates by taking exotic mortgages, thus treating their homes as speculative investments. And others used their homes as ATM machines, continually withdrawing their equity in the form of home equity loans.

For too many, cast aside was the traditional viewpoint that a house was a home first and then a pretty good long-term investment. Traditionally, homeowners may have borrowed against the house to put a child through college, finance a wedding, or pay for medical bills. In recent years spending discipline for some has become more relaxed and home equity savings were spent on things that could only be characterized as frivolous.

While homeownership should certainly be viewed as a long term investment, a home primarily is a place to create a personal lifestyle. When structured properly based on solid advice from a trusted professional, homeownership offers the benefits of security, stability, control over one’s environment, equity buildup and income tax advantages.

For 200-plus years, Americans were eager to purchase property because they knew that on a long-term basis it would create wealth. That concept is alive and well in this country even today.

Posted in Michigan Real Estate Market, Uncategorized, buy a home, real estate, sell a home | 1 Comment »

Realtors hope for spring thaw in sales | detnews.com | The Detroit News

Monday, March 15th, 2010

Realtors hope for spring thaw in sales | detnews.com | The Detroit News

Posted in Michigan Real Estate Market, buy a home, real estate, sell a home | Comments Off

Five Open House Concepts

Tuesday, March 2nd, 2010

1. Sometimes, they get the job done.
Many agents and homeowners are skeptical about the statistical unlikelihood of actually snaring a buyer who walks in off the street. But the fact is that many properties have been sold via open houses: either the buyer at the open house engages his real estate agent and request a one-on-one appointment, or the buyer will submit an offer the day of the open house, immediately after viewing the property.
Open houses can have a “coattails” effect. Many people who go through open houses are neighbors, which is not necessarily a bad thing. People, especially neighbors, talk. The more exposure a listing is given, the better.
2. Sometimes, home sellers just feel better for holding an open house. Especially in a slow market, it amounts to a tangible effort.
If that effort is coordinated with many other agents in an office and area-wide open house days are scheduled, results can be magnified. By combining efforts, agents can send prospects to other houses that better suit their needs, which are conveniently open at the same time.
3. Even if an open house doesn’t produce a sale, it might provide valuable information for the sellers.
Feedback is a valuable resource. Actual market extracted reaction from prospective buyers regarding the condition of the property, its layout, price, etc., will help mold future marketing strategies.
4. The idea is not just to engage consumers, but to engage other real estate agents, too.
Attracting consumers who stop by open houses with their agents in tow creates additional exposure of a different type. Those agents might see the house as attractive to their other clients and arrange future showings.
5. So, what works best to create a successful open house?
Holding a successful open house is part art and part science. Multiple open signs, print and online exposure and direct mail are essential elements of open house pre-marketing. Then it’s up to the hosting agent’s sales skill to engage prospects.
Coldwell Banker Weir Manuel Open House Event March 7
There is still time to sign up your listings for our March 7 Open House Event! Be sure to contact Allison Ferris 248-433-5495 before time runs out March 3 at 9am so your listing can be included in our Detroit News and Free Press Ad and promoted on Facebook and Twitter.

Posted in Open Houses, buy a home, real estate, sell a home | 1 Comment »

SUCCESSFULLY RESPRESENTING REO BUYERS

Friday, February 26th, 2010

Sales associates working with buyers interested in a bank-owned property are well advised to leave some of their traditional thinking behind.

To avoid unmet expectations it is extremely important that the selling agent educates both himself and his clients about the realities of REO brokerage. REO listing brokerages are required to conform to each of their clients’ (banks or third party asset managers) needs and regulations. Each client’s requirements can vary from one extreme to another. And they can be far different from the traditional practices with which selling agents have become comfortable in their markets.

Traditional expectations about gathering information on a property, communicating, negotiating strategies and processing paperwork must be replaced with new thinking.

Some basic questions to which selling agents should seek answers before proceeding:
• How and when are offers presented?
• Can a counteroffer ever be expected or will the highest offer simply be accepted?
• Are offers sent to a special e-mail or fax address?
• What are the specific qualification requirements?
• Are there special forms that need to be included?
• Can communications take place by phone or must everything be done via e-mail?
• Will a single package e-mail submission over 4 MB be accepted?
• What are the office hours of the REO department or listing agent/team?
• If you are the successful selling agent, what time frames
and procedures are expected of the agent and client to return documents, checks, addenda and other documentation?

Understanding that selling bank owned properties is a vastly different process than many agents are used to can help avoid the frustrations involved in the REO process. Knowing these ins and outs is yet another unique skill required today to continue to provide outstanding customer experiences.

Posted in Short Sales and Foreclosures, buy a home, real estate, sell a home | 2 Comments »

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