Macomb County MI real estate blog

Inspections, Appraisals & Reviews - oh my! What a buyers agent can do to help ease the process and the stress in purchasing your home.

Sun, 19 Jul 2009 06:19:31 -0500

If you've read anything about purchasing a home in Macomb County MI over the last few months then you've certainly come across many articles detailing the difficulty in getting the mortgage loans through the processing end of things.

Some of the areas in which your buyers agent (you do have one don't you?) needs to provide their expertise and help to ease the stress are with the inspections that you will have, and the appraisal & appraisal review process:

Your home inspection: As a buyers agent in Macomb County MI , I will provide to you a list of home inspectors that I would personally choose to inspect the homes of family members or my own home. However the last 2 buyer clients that I have worked with have asked family members, co-workers and friends for recommendations and hired wonderful professionals for their inspections. You may use anyone you wish as long as they are insured.   Both of these home inspectors did fabulous jobs for their clients and one of them had a recommendation for an environmental inspector that also did a great job.

Your buyers agent should also pay close attention to the contract dates for the inspection time period and ask for an extension should you need any follow-up inspections or time to clarify something before you make your final decision on whether to proceed or not with the home purchase.

The appraisal and appraisal review process:   Before you sign the offer to purchase the home your buyers agent should provide you with the last 90 days of sales for similar homes within a one mile radius as well as within the same school district. I cannot stress strongly enough the importance of this prior to writing your offer.   The home you chose may seem worth the asking price, but with the declining values in Macomb County as well as the high number of bank owned homes that have sold, that "asking price" may be tens of thousands of dollars higher than it should be.    If your buyers agent does their homework you should have made an offer on the home that was well within the recent (less than 90 days) snapshot of the real estate sales in your target area.

If you have made a fair offer to purchase the home that was based upon an accurate view of the recent
market and similar homes that have sold then you should have no problems when it comes to the appraisal.
Of course we can never be certain how an appraiser will view the home and how much value he or she will place on it, but we can certainly try to analyze the market and get a good feel for what the market value is for that particular home prior to you placing an offer on it.

You don't have a buyers agent to help you and represent your interests?    Get one. You absolutely need your own advocate throughout this process.

~Kris Wales~ A partner for your real estate needs in Macomb County MI

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And here we go...Chesterfield Township (Macomb County MI) is testing their hand at the "Buy a Foreclosure - Flip it for a profit" business.

Fri, 17 Jul 2009 05:31:23 -0500

It appears that the Township of Chesterfield
(Macomb County MI) has decided to get in to the "buy a foreclosure - sell it for a profit" business.

The Macomb Daily has reported that Chesterfield Township has purchased two foreclosed properties and is going to auction them, hopefully for a profit. (One of these properties is said to be a vacant lot in a condominium complex. Now
who is going to purchase that from them?)

It was interesting to read the comments section of the article. It appears that most people believe the same thing that I do: Governments should not be in the real
estate business.

I wish the time and money spent by governement would be directed at helping people avoid foreclosure and creating jobs instead of buying properties and flipping them. (How's the Hope for Homeowners Program working for people in your area? In mine: Not so much.)

~Kris Wales~ A partner for your real estate needs in Macomb County MI

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We can and do make a difference - saying Thank You to a real estate professional who is a shining example for others.

Thu, 16 Jul 2009 06:00:22 -0500

In a market where frustration levels are high for both consumers (both buyers and sellers) real
estate professionals often take a verbal bashing by not only the consumers, but sadly sometimes
by each other.

Today I wanted to praise a fellow Metro Detroit real estate professional in public and
to showcase exactly why I am one of his fans for life.

Andrew Kesteloot with Sine & Monaghan GMAC in Grosse Pointe is a real estate agent
who was a pure pleasure to work with.   From the first interaction with him 6 weeks ago I
knew that he was a shining star in our profession as well as a dedicated advocate for his
client.

My buyer clients viewed a home twice that Andrew had listed in Macomb Township and
wrote an offer on it.   The offer was given to Andrew and that same evening he drove to meet
his seller client at 10:00 that night to make sure he got signatures on it so that my clients
(and his) knew that they had a binding contract.

Throughout the entire 6 week process Andrew returned every call promptly, followed up
with necessary details immediately, kept me and my buyer clients abreast of everything
that was going on, and didn't leave any detail to guesswork.

Yesterday my buyer clients and Andrews seller client celebrated the closing of the home in Macomb
Township. Everyone was happy to be there at the closing table together and all went smoothly
because of Andrews hard work and dedication to his profession & client.

Many people in our Metro Detroit real estate market are frustrated, concerned and frankly
at their wits end.   Real estate professionals like Andrew Kesteloot are needed, wanted and valued.
Thank you Andrew for being the man that you are, the professional that is needed and the advocate
for your clients that I'm sure is very much respected them.

~Kris Wales~ A partner for your real estate needs in Macomb County MI

Home sellers - Can you afford to turn away 50% of the home buyers in your area? Macomb County MI home sellers aren't!

Sat, 11 Jul 2009 07:09:58 -0500

I've been noticing a strong trend over the last 6 months with home buyers in my area (Macomb County MI) and last months analysis of our housing market verified it all for me nicely.

FHA and VA mortgages are truly the Kings and Queens of financing for home buyers in our area.

As the new appraisal guidelines for conventional mortgages (HVCC) settles in I would expect more home buyers to take advantage of the FHA and VA mortgages.   I also believe that when real estate agents in my area show these statistics to their home seller clients that offering FHA and VA terms as part of their marketing plan will also increase.

Frankly this should put an end to the misconception that is still hovering out there that FHA and VA take too much time, or are too difficult for the home sellers and buyers.   As a home seller if you balk at accepting an offer to purchase your home because the buyer is using FHA or VA you should be aware that you are cutting out 50% of the buyers in our area who are financing their home purchases and not paying via cash or land contract.

I don't think home sellers can afford to turn away half of the potential buyers in this real estate market.     Do you?

If you have any questions about the real estate market in Macomb County MI please don't hesitate to contact me. No pressure - Just conversation.

~Kris Wales~ A partner for your real estate needs in Macomb County MI and the Metro Detroit area.

Sometimes our buyer clients say the most comical things to make you laugh (and learn)!

Fri, 10 Jul 2009 16:45:49 -0500

I have permission from my buyer client to share this with all of you. (Thank you Terry!) It helped that Terry found me through the blog articles that I've written, so she is aware of how much we share such things with each other.

Terry and I were going over what she wanted in a condo: Price range, "must have" and "oooh that would be nice" list when she cut to the chase on how to further weed out the condos to send to her:

"If it says 'MUST SEE!!!' on the form don't even bother to send it to me!"

I tell you, I laughed so hard when I read that from her. I've been feeling much the same way when I read those 'MUST SEE' words. After all, aren't there other words that we can use in our listing descriptions for the public that tell us why our buyers should want to make that appointment?

Of course I asked her why those words were forbidden to her. She said "I'm sick of seeing them. I've been seeing them for years. I will probably be sick after I've seen a house with that in the description, so why bother?"

None of the listings I sent her today had those words in the descriptions. She thanked me for that.

Just when we think we know what a buyer is thinking, they get right to the point of something obvious and make us laugh (and learn).

FHA loans vs Conventional loans - Knowing the true comparisons

Fri, 10 Jul 2009 15:56:06 -0500

Jeff Belonger, aka "The FHA expert" has written a wonderful article about the comparisons between FHA mortgages and conventional mortgages.

Since most of my first time (and 2nd, and 3rd) home buyers in Macomb County use the FHA mortgage I thought this would be helpful for all of you to read.

Thanks Jeff, your willingness to share your knowledge is much appreciated!

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans (Infinity Home Mortgage Company, Inc):

FHA loans seem to be one of the main choice of mortgages in the last 6 months or so. There are several reasons for this, which should be spelled out below in my comparison. What I hate hearing is that FHA mortgages have taken the spot of the subprime loans. This is not true by any part of the imagination. This statement is from those that are inexperienced in both the mortgage and the real estate industries. The realization has been that 30% of the subprime mortgages in the last 5 years previous to the last 2 years should have been FHA mortgages, not subprime.

To compound this, so many said just because you had a conventional loan, you had the better loan. This was not always true when putting 3% or even 5% down. In most cases, you were told this, because that particular lender was not FHA approved. Now? Even with 10% down and credit scores less than 680, FHA loans in many cases, will be the best mortgage for you. You want to see a shocking example? Here is an example of 20% down and it shows that the FHA loan was still better. Please read : FHA Loans vs Conventional Loans - 20% down - A Rude Reality Check

So you could argue the fact that this is my opinion, that FHA loans in many cases would be better for you. True, even though I have over 16 years of experience as a loan officer in the mortgage industry. But numbers don't lie. Let me show you.....

The example below is based on a $280,000 purchase price with 5% down. One reason why conventional rates are a little higher in this scenario as in FHA rates is because Fannie Mae and Freddie Mac have added penalties per se. If you are putting down less than 30% and your credit score is less than 720, certain fee penalties would apply to you, which would increase your rate. The FICO (credit score) that I am going to use is 679, which is above the average credit score and I will still show in this example that FHA loans are cheaper, even with 5% down.

***And keep in mind, some lenders have penalties on FHA mortgages with credit scores under 660. And many lenders can't do FHA loans under 620. Just beware of those that promise you a mortgage with scores under 620. It can happen, but they aren't as easy as advertised.***

Disclaimer : These rates are examples, but the spread shown in the example is real. To compare this scenario apples to apples, the fees are the same and with zero points. In this scenario, there is a $475 commitment fee and points. The conventional rate also includes the penalty for the 679 credit score.

Some of you might be saying that you will be adding $4,655.00 onto your principal balance if you did the FHA mortgage because of the FHA one-time mortgage insurance premium. This is correct and I don't want to confuse you with more numbers and charts. But here is a quick breakdown. If you kept your house for 5 years, you would have saved $11,916 in payments in 5 years. Subtract the Upfront Mortgage Insurance premium from the monies saved in 5 years and you have saved a difference of $7,261.00!!! And one other thing that is very small, but still makes a difference. You will be subtracting a few more dollars per month from your principal because your interest rate is lower, which would offset the interest that you would write off on the 6.25% rate. Just something else to remember, but consult your tax consultant or CPA.

Lastly, keep in mind that depending on the area that you are buying or refinancing in, that you might not be able to get a conventional loan unless you have 10% down or a 90% LTV. The reason being is the mortgage insurance companies and how they view certain geographical areas and declining market areas.

For more FHA loans vs conventional loans comparisons :

FHA loans vs Conventional loans - A true numbers comparison with 5% down - Using a 710 credit score

FHA loans vs Conventional loans - A real comparison with 5% down - Using a 659 credit score

FHA Loans vs Conventional Loans - 20% down - A Rude Reality Check - Would you believe that FHA loans could be cheaper even with 20% down? Come see why and how.

FHA Loans vs Conventional Loans - 5% - 4 comparisons that you need to know - Comparing a FHA loan against 3 types of conventional loans with different types of monthly mortgage insurance. Guess who won while still using a 679 credit score.....

FHA loans vs Conventional loans - Knowing the true comparisons - A great comparison with a 679 credit score and 5% down. This example will still show that even with a better than average credit score, that FHA loans are still better in many cases.

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- FHA Loans - USDA Loans - VA Loans -

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Experience & Knowledge at its BEST !!!

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

Copyright © 2009 by Jeff Belonger of Infinity Home Mortgage Company, Inc

If we're going to talk about professionalism, how about just saying "Thank you"?

Fri, 10 Jul 2009 11:45:53 -0500

Most days the articles that I read from real estate professionals in our industry are outstanding
and I applaud them for their well balanced views and consumer educating posts. Then there are
other days when I just shake my head and wonder. Today was one of those days.

I'm not going to point out which article had me shaking my head, but I am going to address what I
feel was insulting to real esate professionals and also could be considered a breach of duty to sellers.

I have to tell you, for the most part when I call a listing agent and tell them that I have a buyer who
has written an offer on their clients home the first words out of their mouth is "Thank you."
Even if the offer is less than what their sellers expected, even if the offer is MUCH less than what
their seller clients had hoped for, I still hear "Thank you for bringing an offer."

Very rarely have I heard "Are you kidding me?" when a listing agent has looked at the offer and
found it to be less than what they feel the home is worth. The listing agents here in my area know
that any offer is better than no offer. They also know how hard buyer agents in the Metro Detroit
area are working for their clients and how much inventory is on the market for buyers to view.
Hell, we could have not even gone into their clients home with all of the homes that are for sale.

Listing agents and buyers agents are behaving even more professionally than ever before and
saying "Thank you" instead of "Thanks for not writing that low ball offer" is part of that professionalism.

The breach of duty that I mentioned? I'd hate to be in the listing agents shoes if they said to a buyers
agent "I'm glad you didn't bring the offer, it was insulting low" and the sellers heard about it. Since
when does the real estate marketing professional for the home decide for their clients what
an acceptable offer is?

Last I heard, the seller owned the home and could say "yay" or "nay" to an offer
presented.

~Kris Wales~ A partner for your real estate needs in Macomb County MI

Macomb County MI - City of Warren to enact a foreclosure registry to combat blight and safety issues

Wed, 08 Jul 2009 05:58:11 -0500

The City of Warren MI in Macomb County is in the process of enacting a city wide foreclosure registry.

I think it's about darned time that the city officials stepped in to combat the blight and the safety issues
that happen with some abandoned foreclosures.

Bank owners (and other owners) will be required to register the homes with the city within 5 days of
the notice of foreclosure in the courts or advertising the foreclosure in the newspaper. The bank owners
(or other owners) must inspect the homes to ensure the homes are safe: Pools drained and covered if they are not in operable condition with clean water, doors secured and windows locked (or boarded) and lawns maintained.

It's going to be up to real estate agents who market these homes for sale to keep on top of things with
their bank clients and notify them when they accept a listing within the City of Warren of this new ordinance.

I believe the ordinance is scheduled to take effect upon the 2nd official reading of it within the City Council. When this happens I will update you.

It's going to much more enjoyable for my buyer clients to view homes in the City of Warren once this ordinance takes effect. Neighborhoods and home values will also be helped by this long overdue ordinance. I hope other communities in Macomb County MI follow suit and enact their own.

~Kris Wales~ A partner for your real estate needs in Macomb County MI

If you would like a list of foreclosure homes for sale in the City of Warren (Macomb County MI) please contact me. I would be happy to send to you the list of homes as they come on the market that fit your needs and wants in a home. You also can view all of the homes for sale in Macomb County MI via MLS provided data here.

Macomb County MI real estate market report - home sales for June of 2009

Tue, 07 Jul 2009 17:21:44 -0500

Home sales in Macomb County MI saw some dramatic changes in June compared to data available for June of last year (2008).

One of the most dramatic, in my opinion, was the average total days on the market being reduced by 88 days. That is almost a full 3 months less time on the market to sell your home than it was a year ago.

June 2009 Average Total Days on Market - 145

June 2008 Average Total Days on Market - 233

Another nice change from a year ago at this time is the number of homes being put on the market for sale. That number also was reduced by 466 residential homes. ( Home owners should start seeing some improvement in the number of showings on their homes with a reduced inventory supply.)

June 2009 # of homes listed - 1656

June 2008 # of homes listed - 2122

Now for the not so good news - sold home prices are still falling. First time home buyers and investors alike are taking advantage of the bank owned homes on the market and buying them at a hurried pace.

The average "sold" price for June 2009 was $88,106 compared to $123,108 for June of last year, however it appears that most of that huge reduction is because of the amount of homes that sold last month in the under $50,000 price range.

Out of the 774 homes sold in Macomb County last month a very large number of those homes were sold for under $50,000:

Homes sold under $24,999

210

Homes sold $25,000 to $49,999

117

With 327 homes selling for under $50,000 last month it is no suprise that the average sales price for all of the homes would fall considerably. The reduced amount of homes entering our Macomb County MI real estate market should help stabilize the sales prices in the coming months. I will let you know as soon as I see this happening.

If you would like more information regarding home sales prices in your specific area of Macomb County please don't hesitate to contact me.

      No pressure - just information and conversation.

                               Kris Wales- A partner for your real estate needs in Macomb County MI

Search homes for sale in Macomb County MI        Ask Kris about your homes value

**All data provided is courtesy of Mirealsource™ and its participating brokers
and real estate agents. It is deemed to be reliable, but not guaranteed**

Morally Wrong....OR...Financially Sound?

Mon, 06 Jul 2009 15:26:36 -0500

A man that I have the utmost respect for, Bryant Tutas, a real esate broker in Poinciana Florida wrote an article today that I am compelled to share with all of you.

It is about a huge problem and dilemma that many of us in Macomb County MI are facing and the banter back and forth between real esate professionals across the country is well worth reading.

The article that Bryant Tutas wrote is about homeowners walking away from their homes and whether it is morally wrong or a financially sound decision.

Thank you to Mr. Tutas for giving permission for this blog article to be reposted. I am grateful and I'm sure my readers will be so also.

Via Bryant Tutas-Tutas Towne Realty, Inc:

Richard Zaretsky’s recent post..........

"WALK AWAY FROM THE PROPERTY - STRATEGIC MORTGAGE DEFAULTS GROW TO 26%"

got me thinking. His post is talking about the amount of people who are making the "Strategic” decision to default on their mortgages.

TheTruthAboutMortgage.com site had this to say about the topic.

“A new survey conducted by the Kellogg School of Management in Chicago suggests that more than a quarter of mortgage defaults are strategic, especially when negative equity exceeds 15 percent.”

Some of the comments on Richard’s post were calling this a moral issue. As in “It is morally wrong to strategically default on your mortgage”.

So…….my question is…“Is deciding to default on your mortgage, or not, a moral issue?”

Here are my thoughts: "Strategic Defaults" are rampant in my area. People are living in their houses as long as they can for free and saving their mortgage payments so they can move on with their lives and have a little bit of a nest egg.

These are people with families that have mortgage balances over $200,000 on homes that are now worth $60,000. Foreclosures and short Sales make up 90% of the market in Poinciana Florida and are still dragging prices down.

There is no chance in hell of these properties EVER being worth $200,000 again. At least not in the next 10-15 years..

These borrowers are so far underwater they will NEVER be back on top again. So…. whether they make payments or not, at some point they will have to sell, due to life circumstances i.e. job relocation, divorce, marriage, death.....it makes sense to take the hit now and start rebuilding.

To compound the issue....folks see all of the "bailouts" for the banks and start thinking "Where's mine?" So they create their own bailout.

Is this a moral issue? I don't think so. As much as I hate to say it…I think it’s a sound financial decision. What say you?

Are you a Florida REALTOR(R) looking for a change? Check it out. http://TTRealtyNet.com

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

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My priorities are all screwed up this morning. (Ever have one of those days?)

Mon, 06 Jul 2009 05:29:20 -0500

It was quite a headline type news weekend in the Metro Detroit area, and one would think with all of the economic problems that my hometown area is facing that I would be a bit more concerned this morning with hard core issues facing people in my area.

My priorities are screwed up today. (I'm human, I'm sure you've all experienced this also at one time or another.)

Instead of delving deeper into the bad asset sale of GM and the bankruptcy courts approval of those assets, or worrying about the police chief of Detroit being fired without a reason for his sacking being disclosed I am more upset and dumbfounded by this:

Brandon Inge didn't make the All Star team.

It's a travesty. An injustice. An outrage! This man is a human highlight film at third base.

We can make this right.

There are 5 ball players that are on the final ballot. If you go to MLB.com you can vote for Brandon to make the trip to St. Louis. I've already voted, many many times. (Yes, you can vote more than once!)

Hopefully since I've gotten this out of my system, for this morning at least, I'll be able to get back to work on concentrate on other things except the injustice of the All Star voting system!

Congratulations to Justin Verlander, Edwin Jackson and Curtis Granderson who have been chosen to represent the Detroit Tigers at this great American classic!

Things that can (and will) slow down hearing "Clear to close" for your mortgaged home purchase- be prepared and be proactive.

Fri, 03 Jul 2009 06:20:03 -0500

There is nothing sweeter in the world for home buyers than to hear the much anticipated words from
their mortgage lender:

Clear to close!

Getting to that point though has taken a bit longer in my area (Macomb County MI) and I have a feeling
it's the same for most of the country. Times sure have changed and we all need to be on our toes and be pro-active to understand what we can change and what we can't change about the mortgage process.

Below is a list of things that can (and will) slow down your mortgage process and delay the closing on
your new home beyond the expected date:

Appraisal review: This is now the new normal. Once the appraisal comes back to the lender it most often goes in for an additional review by another set of eyes. You'll have another 3-5 business days of waiting out this process before you will hear those magic words.
Last pay stubs and bank statements: It doesn't matter that you gave your lender pay stubs and bank statements 30 days ago. Save each new one as you receive it and forward it to him/her immediately. It's much quicker and less stress on you if you just forward them over instead of waiting to be asked for them.
Verbal verification of employment: The day before or the day of closing the mortgage processor will make one last phone call to your employer to make sure you are still an employee. Unemployment is still high and the lender wants to make sure you have employment the day you sign the mortgage papers. (If your company is going to be closed down for any vacation time or holiday please let your lender know those dates.)
Homeowners insurance: A simple rate quote and declarations sheet used to be good enough for the underwriter to clear your loan to close. Not quite so simple anymore. Ask your mortgage lender for the specifics of what is needed by you and your insurance carrier 10 days to 2 weeks before your anticipated closing. (Most lenders will be happy to talk to your insurance representative - they all want to get it right the first time around.)

The best advice that I can offer a home buyer to help all of this go smoother? Keep in constant contact with your mortgage lender and buyers agent. Teamwork is truly the key to a smooth home purchase and hearing those magical words "Clear to close".

~Kris Wales~ A partner for your real estate needs in Macomb County MI

A kinder gentler real estate profession - can we give it a try please?

Mon, 29 Jun 2009 06:54:06 -0500

Can we be kinder to each other please?

It doesn't take a degree in economics to understand that people are hurting financially. All we have to do is look around us at the people within our own industry to know that the real estate market down turn has hurt more than just homeowners. It's hurt all of us.

In my Metro Detroit area I have watched as many agents have left the business, as well as mortgage lenders and home inspectors.   I cringe each time I hear "well, that's more business for us" or "It's getting rid of the bad ones" or the ever popular "If they just worked harder they wouldn't have left."

Hogwash.

I don't know about you, but the people that have left the industry that I'm acquainted with have been stand out people that provided a wonderful service and agents that I thoroughly enjoyed working with.   They've left this industry because they need to provide for their families. They've left the industry because they didn't have a choice.

Oh I'm sure there are some agents and other real estate professionals that got into this industry when times were great and then bailed, but for the most part this is not what I'm seeing as the norm.

Truth of the matter is we've lost good people. Hardworking real estate agents and mortgage lenders and home inspectors who need to feed their families and provide health insurance and pay their mortgages...you get the picture.

Last year I offered to help a struggling agent as he took on another job to feed his family and pay his bills. I didn't want anything in return - only his continued presence in this industry.   Why? He was a damned good agent who cared about his clients and always conducted himself in an ethical manner. Sadly, he couldn't hang on and made a decision that I know broke his heart.

Please. Let's be kinder to each other.   Instead of saying "He didn't work hard enough" or "More business for me!" how about offering a helping hand when we can?    A kind phone call to someone struggling, an offer of your time without any expected compensation, or a bit of advice and cheerleading can go a long way to lift a persons spirit in their time of need.

Photo courtesy of Valerie Everetts Photostream via Flickr - Creative Commons License

First time home buyers - Have a Plan B in your pocket for greater odds of success.

Sun, 28 Jun 2009 07:31:42 -0500

Every home buyer wants a bargain. I love bargains myself.

However, your home purchase won't feel like much of a bargain if you miss out on the deadline for the first time home buyers tax credit because you waited for months for a reply on your offer to purchase a short sale property.

In the next couple of months we are going to be seeing a buyers frenzy as people start to understand that the deadline is approaching.

I'm not going to be popular with listing agents for saying this, but here goes: If you are going to place an offer on a home that needs short sale approval keep updated about the current market and available homes after you have the sellers approval. You need 2 sets of approvals for your short sale offer: One from the home sellers, one from their mortgage holder. Until you get that approval from the mortgage holder you don't have a deal.

Have a Plan B: Give yourself a firm cutoff date on when you need to hear back from the mortgage holder and need to move on with your home search. (I suggest no later than September 1st.) Ask your buyers agent to send you regular updates on the homes that are coming on the market that meet your criteria. Stick to your cutoff date. If you haven't heard back from the mortgage holder in a positive manner about your offer on the short sale property move on without looking back.

****The deadline to close on your home in order to qualify for the First Time Home Buyer tax credit
is November 30th, 2009****

~Kris Wales~ A partner for your real estate needs in Macomb County MI
Want to search for homes in Macomb County MI with MLS provided data?

VA home buyers in Macomb County MI - closing costs, info for disabled vets and the first time home buyers tax credit

Sat, 27 Jun 2009 05:40:01 -0500

A recent caller asked if the (up to) $8000 first time home buyer tax credit is able to be used if
they choose to use a VA mortgage.

Yes, yes YES.    One of the confusing bits of misinformation is that the 1st time home buyers tax
credit can only be used with an FHA mortgage. That is not true. FHA, VA, conventional, land
contract - if you are a first time home buyer and meet the other guidelines you qualify for the tax
credit.

VA mortgages also allow the buyer to ask the seller to pay up to 6% in sellers concessions towards
the buyers closing cost, pre-paid items and tax prorations. (In my experience unless the home that
you are purchasing has reverted to non-homestead status this 6% will cover most of these items for
you.)

One other tidbit about VA mortgages that I recently became aware of:   If you are determined by VA
to be at least 10% disabled they will waive the funding fee.   (Make your mortgage lender aware of your
disability status and provide him / her with the documentation.)

I hope this cleared up another bit of the confusion and misinformation about the (up to) $8000 first time
home buyers tax credit. Remember, this credit has an expiration date: November 30th, 2009. Don't
dawdle and lose it!

Search homes for sale in Macomb County MI with MLS provided data

Want to read more about real estate in Macomb County MI?

~Kris Wales~ A partner for your real estate needs in Macomb County MI

FTC says if we're blogging we better be honest about any freebies!

Tue, 23 Jun 2009 08:14:01 -0500

Awesome article in this mornings The Detroit News regarding the FTC and its new stance on bloggers and the articles they write touting products.

I'm not one who wants controls on speech, but I have to tell you I agree with the FTC on this one. If I'm going to receive a free cruise and then write a blog article about how wonderful the cruise was then I would think I should be disclosing that I received the freebie.

Now I wonder about all the blog posts we've seen here about products and such that are clearly endorsement articles. Have the bloggers received freebies to endorse these products and write glowing reports?

Thinking about purchasing a condo? Listen to local news and advice and partner up with a good buyers agent.

Mon, 22 Jun 2009 07:55:46 -0500

Last month a buyer client of mine closed on the purchase of her condo and was absolutely thrilled. As she wasn't a first time home buyer she isn't able to receive the First Time Home Buyers tax credit, but is happy about the wonderful condo that she bought at a terrific price.

I've heard from several people over the last couple of months that are interested in purchasing condos but are concerned about what they've been reading as far as obtaining a mortgage for one.

A couple of tips:

If you are purchasing using an FHA or VA mortgage ask your buyers agent to check and see if the complex you are interested in is on the HUD approved list.
Have your buyers agent do their homework: Insist on financial statements from the association or management company as part of the due diligence during the inspection period. Review them together, and if they are complicated ask an accountant to review them on your behalf.
Ask your mortgage lender if there are any requirements that you or the condo complex must meet in order to obtain your mortgage. (Guidelines change quickly and you want to make sure that the information you received 6 months ago from your lender is still the case today.)
Remember that all real estate is local. What may be the norm for Florida or Nevada isn't the norm here. Talk to your buyers agent and your mortgage lender about what is happening in your desired purchase area.

There are some outstanding condos on the market know in Macomb County and people who wish a more
maintenance free lifestyle may want to consider purchasing one of them. For example, here are the condos
that are on the market this morning in Sterling Heights.

If you have any questions about purchasing a condo in Macomb County MI please don't hesitate to contact me. No pressure - just conversation.

Kris Wales - A partner for your real estate needs in Macomb County MI

Signs of recovery for Macomb County MI housing market? I'm seeing them - how about your area?

Sun, 21 Jun 2009 07:22:14 -0500

Waaay back in 2008 (sure seems like a long time ago!) many, if not most real estate professionals
agreed that some of the signs that the bottom of the real estate market had hit was when we saw
the following:

Interest rates rising.
Multiple offers on homes - privately owned as well as foreclosures.
The average days on the market steadily lowering.
Short sale homes actually selling.

Well folks, I'm personally seeing all 4 signs now.

In the last 2 months my buyer clients and I have been a part of multiple offers on homes (yes, even the
privately owned homes), the interest rates on their mortgages have been higher, homes selling quicker
than we can get in to view them, and last but not least: Homes on the market as short sales are actually
closing more often than not.

Is the worst over? I can't predict that. The economy (especially here in Metro Detroit) is still rough
around the edges, but people are feeling a bit more confident about the future.

The government stimulus programs are working in our area (the $8000 first time home buyers tax credit
amongst them) and consumers are realizing that purchasing a home is something that will always be a part
of the American way of life.

I'm now looking forward to the next sign that I'm sure we'll all be watching out for: Home prices
stabilizing and then increasing in value again.

~Kris Wales~ A partner for your real estate needs in Macomb County MI
Want to search for homes in Macomb County MI with MLS provided data?

Your home purchase can't (and should not) be hurried.

Sat, 20 Jun 2009 05:21:49 -0500

Carole Provenzale left a comment on one of my articles that inspired this post. Thank you Carole!

One of the areas of our profession that my clients routinely express their surprise at is the length of time it takes to complete each part of their transactions. We come from such a hurry up society that sitting down and taking hours to go from Step A to Step B comes as a shock to most of my clients.

A couple of recent examples popped in to my head when I read Caroles comment:

When I told Mr. Buyer how long the home inspection would (should) take and to
please budget that amount of time from his day he was surprised. "You're kidding?"
No, I'm not. 2 1/2 to 3 hours is the typical time for a good home inspection.
One buyer spent 90 minutes with his mortgage lender in a face to face sit down when
formally applying for his mortgage. He had no idea it would take more than a few
minutes to "sign a few papers" but was elated that the lender explained everything
to him in a clear manner and gave him options to consider.
Another client was a bit dismayed that it took me a couple of hours to weed through
the active listings & narrow down their home search to those that fit their criteria and
didn't waste their time in potential viewings. When I sent her a lengthy email detailing
what I do, and why I do it, she understood and thanked me for being so careful with
the list of homes that I was sending her.

These are just examples of some of the things that take time during the process of purchasing your
home. Much goes on behind the scenes that you personally do not have to take care of because the
professionals you hired are doing it for you. We do try to make it as stress free as possible for you, but
we can't skimp on the time that we spend, or that you will spend in purchasing your home. I'm sure you wouldn't want us to rush on what is probably going to be the most important and expensive purchase of your life.

~Kris Wales~ A partner for your real estate needs in Macomb County MI

Want to chat about Macomb County MI real estate?

**Photo courtesy of Aaron Gellers Photostream via Flickr - Creative Commons License

I'd probably make more money if I was an order taker...

Fri, 19 Jun 2009 05:00:42 -0500

Caution - true story below. (Specifics changed to protect the privacy of someone but the meat and potatoes are there.)

Last week I received an email from a future Macomb County MI home buyer. The email was cc'd to approximately 30 other Macomb County real estate professionals. In the email the future home buyer asked each agent to send a list of all of the bank owned homes on the market that met the criteria that was stated at the end of the email. After driving around and viewing the homes the future buyer would then call the agent who sent her the list with the homes she was interested in to represent her inher purchase.

Nothing was said about what would happen if all 30 of us sent her lists and how she would handle choosing an agent to write her order (purchase offer).

In her defense I would like to point out something else in her email: She is under a time crunch because of her financing and did not have time to call agents and wait for return phone calls.

Some of the things that ran through my head after I read it:

Buyers agency and 'what it is that we do' has not been explained to her.

The time it takes to properly represent a home buyer has also not been explained. (I did some old fashioned math and averaged the hours I have spent with my last 3 buyer clients and came up with 73 hours representing their interests from start to finish. This doesn't include the "after care" that I take with each one.)

Where could I cut corners? Of course I would have to cut some corners in switching modes to an order taker and not a performing my duties as a buyers agent. But where? My instinct told me there wasn't any aspect of my due diligence on my clients behalf that I would be comfortable cutting from my services.

I had a chance to make some quick money and I turned it down. All I had to do was return her email quickly, perhaps pick up the phone and call her and introduce myself and tell her the list of foreclosures were on its way. And oh, by the way, pick me!

I don't feel badly about it, in fact I feel pretty darned good about my decision. I sent her an email wishing her well and congratulating her on being a future Macomb County home owner. I also advised her to ask the agents that responded about buyers agency. I hope that after wading through all of the agents emails and phone calls that she picked someone who would be able to sit her down and explain buyers agency to her and what it is that we do. Or, that she received a darn good order taker and everything goes smoothly for her!

~Kris Wales~ A partner for your real estate needs in Macomb County MI

"Could I have your permission to write a blog article about your question?"

Mon, 15 Jun 2009 05:52:57 -0500

Inevitably a phone call from a prospective home purchaser gets the wheels running
inside of my head and I ask the question:

"Could I have your permission to write a blog article about your question?"

With thanks to Lisa for her wholehearted agreement, here was her question:

"My apartment lease isn't up until October 1st, but I read your article about not
waiting until the fall to start the process to purchase a home. I don't want to miss
out on the 1st time home buyers tax credit, but I also don't want to pay extra for
my lease and a mortgage payment. What do you suggest?"

Lisa asked a very good question and one in which I'm sure many prospective home
buyers are asking themselves.

My advice to Lisa was pretty straightforward and simple:   Start gathering your
paperwork for your mortgage pre-approval and sit down with a mortgage lender (or
her bank or credit union loan officer).

Lisa could then start to look for her new home in July and August, with a target date
to have an offer to purchase accepted by the end of August - early September.
Closing is taking approximately 30-45 days for an FHA mortgage. With that in mind,
the home Lisa decides to purchase wouldn't close (become hers) until the end of
September - beginning of October.

What about her October apartment rental payment?   She would pay for that and
not have a double housing payment as her first mortgage payment wouldn't be due until
November 1st.

Lisa thanked me for my time, but I was the one who was grateful that she called.
Her phone call stressed to me the importance of getting the word out to potential home
buyers who do not want to miss out on the First Time Home Buyers tax credit. She also
was a very good sport and gave me permission to post her question here, so that others
could learn from the question that she asked.

~Kris Wales~ A partner for your real estate needs in Macomb County MI

Search homes for sale in Macomb County MI

Are we going overboard with disclosures and disclaimers to avoid lawsuits?

Sun, 14 Jun 2009 09:01:58 -0500

I had an interesting conversation with a co-worker the other day. (Hello to
Greg Ouilette!)

He had attended a class in which the instructor was reiterating the need for an
exlusive buyers agency contract. The instructor (can't remember his name, sorry)
stated that without it we could be holding ourselves open to lawsuits from former
buyer clients who feel that they paid too much for their homes.

This was a bit stunning to me as my every day practice with buyer clients is to
research the latest comparable sales that closed and give that information to
them prior to their making an offer on the home.

I then ask the buyer client{s} what they would like to offer for the home.

They've chosen the offer price, and if there is a counter offer they are the ones to
choose whether to accept, re-counter, or reject entirely.

Of course I save all documentation and correspondance as well as making sure that
my clients understand that I am not an appraisor and cannot guarantee how an appraisor
will view the home and its current value. Nor can I make any guarantee as to how the
real estate market in my area (Macomb County MI) will behave in the future.

Having added language in an exclusive buyers agency contract seems to me to be
almost an aferthought with protection, and in my opinion, our actions during the course
of the transaction would (and should) weigh more heavily in our buyer clients eyes.

Your thoughts?

~Kris Wales~ A partner for your real estate needs in Macomb County MI

Important dates to keep when buying your first home this year! Don't lose out on the buyers tax credit if you are purchasing a home in Macomb County MI this year.

Tue, 09 Jun 2009 06:01:50 -0500

August 1st: Start your pre-approval process with your mortgage lender and
begin to gather the documents that you will need (pay stubs, past 2 years tax returns,
last 90 days of bank statements, cancelled checks showing rental payment history if
applicable)

September 1st: Have your buyers agent picked out. Yes, it is always wise to have
a buyers agent looking out for your best interest. ( In Michigan the sellers have their
own agent. Protect yourself.)

October 15th: Have your new home picked out and your purchase offer accepted
by the sellers.

November 30th: The most important date! To qualify for the 1st time home buyers
tax credit you must complete the purchase of your home on or before November 30th.
Don't count on the government to issue an extension. (Remember, we all lost the down
payment assistance programs on a specific date. They were not given an extension!)

If you stick to these dates you should have no problems achieving your goal and recieving
the 1st Time Home Buyers tax credit. (Remember, it is up to $8000 in government money
that we may not see again.)

If you'd like to search for homes that are currently on the market in Macomb County MI
please click on this link.

Want to chat about the Macomb County MI real estate market and happenings?

The best advice to those who are considering purchasing their first home this year?

Sun, 07 Jun 2009 07:40:53 -0500

Do it soon.

I just finished writing an article for my Macomb County MI real estate blog and informed first time home buyers that they should not wait until early fall to start looking at homes to purchase.

In the past week my buyer clients and I have experienced the following: Home inspectors being booked solid and difficulty in getting a home inspection done within the contract time frame, multiple offers on clean and well priced homes, and homes sold before we can make our appointment to view them.

The (up to) $8000 tax credit from the federal government does have an ending date: November 30, 2009.

Please be careful - your contract to purchase your home must close on or before that date. Many first time home buyers think that they have to have an offer in writing before that date and they will qualify for the 1st time home buyers tax credit. This is NOT true. Your home purchase must close (be fully completed and the home in your name) on or before November 30th.

If you wait until September or October to begin your home search it may be too late. (I'm not being pushy with this statement, I'm seeing signs of the frantic pace already that buyers are being put through.)

~Kris Wales~ A partner for your real estate needs in Macomb County MI

Avoiding mental mistakes during stressful times

Wed, 03 Jun 2009 06:32:28 -0500

Last night when I got home from work I turned on the Detroit Tigers vs the
Boston Red Sox game and settled in for a relaxing evening with my husband.

During the game two Detroit Tigers players made mental mistakes that were uncharacteristic for both players. Both of those mistakes were those head slapping "What was I thinking?" kind of mistakes that I'm sure both were pretty embarrassed about.

This morning when I awoke I thought about the game again last night and how we all are capable of making mental mistakes and during times of stress the likelihood of that happening is even higher.

In Metro Detroit the everyday stress that we are experiencing in our own
lives and in the lives of people around us is causing many to lose focus and perhaps make mental mistakes that are uncharacteristic for them.

I am concscious of the fact that I need to be on my toes even more so. Here are a few things that I've found that help me to concentrate even harder to avoid costly mental mistakes:

Keep a buyers and sellers checklist within reach at all times.
Make a spare copy of each document so that I have one that I can use a highlighter
on to eye-focus on important areas.
Call, call and call again. I will call my lenders, my clients, my co-op agents and
go over things again even if I've already done so. Most don't mind my reviewing
topics with them, in fact, most appreciate that I am on top of things.
Write it down! I write many many notes on each of my client folders, and also
have hard copies of email exchanges that are tucked within the folders just in case
I have one of those "what was that again?" moments.

If you have any other tips that can be helpful to avoiding mental mistakes during times of stress please share them. I'm all ears, and I'm sure others would be grateful for them also.

Kris Wales - A partner for your real estate needs in Macomb County MI

Photo courtesy of Brymo via Flickr - Creative Commons License