Feeds:
Posts
Comments

Archive for October, 2011

Rolling Meadows Lake Orion MI– Prices Still Rising

Rolling Meadows Lake Orion MI- Prices Still RisingPrices in Rolling Meadows, Lake Orion MI are still on the rise though still a major discount from the hey days of 2004 when the sale prices in Rolling Meadows ranged from $295,000-$368,000.

2011 sale prices so far range from $194,000-$260,000 with a median sale price of $225,000

2010 sale prices ranged from $164,505-$237,000 with a median sale price of $213,500

2009 sale prices ranged from $153,000-$247,000 with a median sale price of $210,000

There are currently 2 houses pending (both normal sales) with asking prices of $233,000 and $284,900 and 1Rolling Meadows Lake Orion MI- Prices Still Rising home currently for sale with an asking price of $254,900 (stats pulled on 10-26-2011).

If you would like to purchase a home in Rolling Meadows that you may not have been able to afford a few years ago, now is a good time to take advantage of the super low prices and low interest rates. If the current trend continues and prices continue to rise, you may be in the same boat as a few years ago. Prices are still within the FHA limits if you have limited funds to buy.

Bald Mountain Recreation Area

Friendship Park

Orion Oaks County Park

Search the MLS

Jackie Hawley
Keller Williams Realty
cell: (248)736-6407

Jackie@JackieHawley.com

Read Full Post »

Michigan Foreclosures- New Buyer Fee to Consider

It is customary in Michigan real estate transactions for the seller to pay the transfer tax- both state and county- to the tune of .86 of a per cent of the sale price. Bank owned homes backed by Fannie Mae and Freddie Mac have been exempt from this fee until now. Fannie and Freddie are refusing to pay this fee and passing it on to the buyer and this includes sales that are currently pending.

A little background:

Up until now Freddie and Fannie have been exempt from this cost which is not exactly a puny little fee. For every $100,000 of house that is an $860 charge. There has always (probably not literally always) been a clause in the addendum to purchase Fannie and Freddie homes stating “Seller is exempt from payment of state taxes and tax stamps on deeds, mortgages and notes (12 U.S.C 1452(e)) and if payment of such state taxes or stamps is necessary to record the deed or mortgage, the tax will be paid by Purchaser and will not be considered part of closing costs.”

When representing the buyer we have just told them to not worry- Freddie and Fannie are exempt in Michigan, so go ahead and sign if they want the house. Unfortunately on bank or government homes (foreclosures) there is no changing or tossing their addenda. They have standard forms and they don’t deviate.

I personally never felt it was right to exempt Fannie and Freddie from paying the transfer taxes; it’s not like our state is so flush we don’t need the revenue. And if we want to exempt anybody, why not exempt people instead of a quasi-governmental agency which is organized as a privately owned corporation that issues its own common stock? Or stated another way- a private company when it comes to profits and a government agency when they need money.

The change in Michigan Law, or the interpretation of current law, I have no argument with. I have a problem with the cost applying to currently pending sales and with the addendum that states that the transfer tax can’t be considered a closing cost.

The bottom line:

When considering a foreclosure listing, discuss any additional fees with your Realtor regarding that specific home. Fannie and Freddie homes now have close to an additional per cent in fees that other listings don’t have. The last PNC owned listing I sold the buyers had to pay $300 fee plus were required to use the seller’s title company for the lender’s policy (which is probably illegal but if you want the house….). Other banks have their own fees that get passed on to the buyer. Many foreclosure agents have added required buyer fees in order to present an offer.

Often times a regular, non-distressed sale is truly the best “deal” once you consider additional buyer fees, the fact you may need to have utilities in your name in order to have a home inspection, the fact you may have to pay to un-winterize a house in order to inspect, the fact that there are probably obvious issues with the house and probably hidden problems you may not discover in a home inspection.

Are Bank Owned Homes Really the Best Deal?

More About Buying Foreclosed Homes

Jackie Hawley
Keller Williams Realty, Clarkston MI

Cell: (248) 736-6407

E-mail: Jackie@JackieHawley.com 

Read Full Post »

Will They Sell on Land Contract?

Would YOU give title to a 6 figure asset to someone with your credit history?

I don’t mean to sound snarky, but I probably get 2-3 inquiries a week asking about land contract terms. The call usually goes something like this:

Caller: Will the seller at X address consider land contract terms?

Me: How much downpayment do you have and how long of a term are you looking at?

Caller will usually have somewhere between 2 payments to 10% on the high side.

Me: Why don’t you want to get a mortgage?

Caller will usually not qualify for a mortgage because of a recent foreclosure, short sale and/or bankruptcy

So…. If you fit the scenario above: Would YOU give title to your house to someone who has a few thousand dollars and bad credit?

More About Land Contracts

Are Bank Owned Homes REALLY the Best Deals?

Search the MLS

Jackie Hawley
Keller Williams Realty Clarkston

Cell: (248)736-6407

Jackie@JackieHawley.com

Read Full Post »