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Archive for November, 2011

Making an Offer on an Oakland County Michigan Short Sale Listing? The Asking Price Means Nothing!

First a quick run down about how the short sale process works. Owner lists a house with a real estate agent. The owner owes more on the house than he can sell it for and is either unable or unwilling to bring the short fall to the closing, so it is listed subject to short sale approval. The banks do not pre-approve houses for short sale and the banks do not set the asking price.

The point is, the seller and his agent set a price to ask for sale and it has nothing to do with what the bank (or banks) will take for a pay off. I know how I price a short sale listing, but every agent is going to have their own ideas of what works best. Some agents appear to have no rhyme or reason behind their pricing. When considering buying a short sale listing, one of the factors to consider is the abilities of the listing agent. He or she is a major component to getting a favorable approval.

One of the myths floating around out there is that the banks will approve anything. There are some great deals, but they exist in all types of sales: short sales, foreclosures and regular sales. But I can honestly tell you that is a rare to non-existent happening that a bank will approve a payoff of $50K for a house worth $150K in this market and owes $300K. Something IS NOT necessarily better than nothing. The banks aren’t going to just forgive debts because it’s the easiest thing for sellers and real estate agents. In Michigan the banks have 10 years to come after the deficiency, and if they don’t release the seller from that deficiency there isn’t much incentive for the seller to approve the short sale and continue to closing.

Short sale listings tend to sell at the low end of fair market value and even slightly under today’s fair market value. And they should if you consider a 6 month wait on the part of the buyer to even find out if they can buy the house. I like to equate that wait and uncertainty to sweat equity. But the current asking price has absolutely nothing to do with the final sale price. It is very possible/likely that you will wait it out and the short sale gets flat out rejected. Or you may get a counter offer. During that time you hope interest rates don’t go up.

Before we make an offer on a short sale listing, I will do a detailed market analysis on the house. There’s no need to make a low offer that you can’t or won’t move off of if the bank won’t accept that low of a pay off. There’s also no need to make an offer so high that your lender won’t approve the mortgage due to a probable low appraisal.

I have a series of blog posts about buying a short sale listing. Some about the downfalls as well as the perks to buying a short sale listing. After reading the posts outlining the good and the bad, if you are willing and able to still pursue possible short sale listings, there are more posts about negotiating with a short sale seller. The incentives for a short sale seller are very different than those of a traditional seller.

Jackie Hawley Keller Williams Realty, Clarkston MI

Cell: (248) 736-6407

Jackie@JackieHawley.com

Buying Real Estate In Oakland County Michigan

Writing the Offer

Financing

The Home Inspection

Foreclosures and Short Sales 

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Attention Loan Officers- We are a team, working together. Keep up the snarky attitude and we can always change loan officers.

I don’t know when selling real estate became so confrontational- almost a contact sport. Sometimes a simple real estate transaction feels more like a pissing contest with everybody out to draw blood.

Recently we had another appraisal come in low. This time $27K low for one of our buyer sales. We comped the house, went over the comparable sales with our buyers, and everybody felt the house was worth more than the buyers were paying. And did I mention we were in a multiple offer situation?

The phone call from Fifth Third the loan officer? The appraisal came in low. Guess the seller will have to come down.

NOT!

First of all, there is another buyer waiting in the wings who looked at the same comps we looked at, the sellers looked at and the listing agent looked at. The appraisal is just one persons’ opinion- a person we don’t know. A person who does not have a fiduciary to the buyer. A person who doesn’t have to explain their conclusions to us.

So what did the snarky attitude from the loan officer accomplish? A pay day for a different loan officer. She didn’t want to correct the problem or even attempt to remove the one obstacle keeping or clients from getting the home they want. She got snotty and we sent our buyers to a different loan officer.

You need to remember they aren’t married to you. They’ve spent more time with us. They trust us. And they know you have no legal agency relationship with them. The agents in a transaction are the only people involved in the real estate transaction who have a legal agency relationship and we are the only people in the transaction who actually have a fiduciary obligation to our clients.

So the next time you consider getting snotty to a buyer’s agent, remember this story.

What a Buyer’s Agent DOES NOT Want to Hear From the Loan Officer

Why Would You Ask the Seller to Pay for the Well and Septic Inspection?

Does the Buyer Have a Right to a Home Inspection? Commonly Asked Questions Regarding Clarkston MI Real Estate

If You Work As My Buyer’s Agent, How Much Does That Cost Me?

Why are the Seller and I BOTH Paying for Title Work/Insurance?

What is the Deposit For? How Much Should it be?

Jackie Hawley
Keller Williams Realty, Clarkston

(248)736-6407

Jackie@JackieHawley.com

www.MiRelocation.com

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Lake Orion MI Homes For Sale There are currently 20 homes for sale in Lake Orion and Orion Township with asking prices between $200,000-$300,000- many which can go FHA requiring as little at 3 ½% down. A couple are lakefronts. One is on acreage. Some are new construction. Interest rates are low and mortgages ARE NOT impossible to get. Lenders ARE lending.

Call Jackie for a list of homes for sale inLake Orion MI(248)736-6407

Lake Orion Michigan Homes For Sale

Search The MLS- No Registration Required

If you would like a more custom search or information about buying real estate in this buyer’s market please call:

Jackie Hawley

Keller Williams Realty, Clarkston MI

Cell: (248) 736-6407

Jackie@JackieHawley.com

Buying Real Estate In Oakland County Michigan

Writing the Offer

Financing

The Home Inspection

Foreclosures and Short Sales 

Read Full Post »

What is Your Definition of a “Deal”? Is it finding what you want for the price you can afford? Or finding a house that is priced lower than the other homes in the same neighborhood? Or do you determine the quality of the “deal” by how much the seller comes down from their asking price?

Unfortunately, many buyers lately seem to judge their home purchase by the amount the seller is willing to come down on the price. I can understand not wanting to over pay or feeling like you have been taken advantage of. But it is your HOME you’re buying. And personally I think it’s senseless and short sited to not buy a house because a seller has properly priced it, or even under priced it.

Part of my job as your buyer’s agent is to advise you of value- unbiased value based on sold comparable sales as well as what is currently on the market. When you bring emotion into it, the house may be worth more to you than the comparable sales indicate.

When I bought my house I only looked at houses in a price range I was comfortable in and bought the one I liked best. The asking price happened to be about half what I qualified for and I paid full price. 16 years later I’m still happy with my home. It happens to be a good financial investment, but more importantly I’m not sitting in my second or third choice because the sellers on my first choice wouldn’t come down on their price.

A Tale of Two Taxes- How Property Taxes Affect Your Buying Power

How to Calculate Your New Property Taxes

What Happens if the Appraisal is Low?

Is the Appraisal for Your Protection?

The Perfect House- Doe it Exist?

Buying a Foreclosure

Buying a Short Sale

Jackie Hawley

 Keller Williams Realty, Clarkston MI

Cell: (248) 736-6407

Jackie@JackieHawley.com

Buying Real Estate In Oakland County Michigan

Writing the Offer

Financing

The Home Inspection

Foreclosures and Short Sales 

Read Full Post »

Southeast Michigan Short Sales- Why You Should Avoid Many Of The So Called “Short Sale Specialists”

I will preface this post with a kind of anti-disclaimer: If you have to sell via short sale, I DO NOT WANT TO LIST YOUR HOUSE. If you are a past client or a friend, I will list your house if selling via short sale is the best option for you, and you agree to my rules. So this post is NOT to get your short sale business.

I have my own reasons for not listing short sales, one of them being the success rate to close. In just general MLS searches for buyers and for market anlaysis’ for listings, it appears that about 1/3 of the houses that go pending short sale approval, end up back on the market or foreclosed. I personally never saw the benefits of a business model that has a 1/3 failure rate built into it.

Then today, one of my associates received an e-newsletter from a local “short sale team.” They bragged a bit about having closed over 100 short sale transactions in the past year. They then go on to crow about the fact they “process on average 75 active short sales daily…” Hmmmm. I was never a math genius, but I do own a calculator and that comes out to 100 closings for every 27,000+ clients they take on. So about one third of one percent of their business actually closes.

Since I can’t convince all my buyer clients to avoid short sale listings, PLEASE PLEASE PLEASE hire a good, experienced, successful agent to handle your short sale. Someone who was a good and successful agent BEFORE short sales became such a big business. To me it looks like many of the “specialists”, whether they are attorneys or real estate agents, specialize in listing a high volume of distressed homes with a small success rate. From a seller’s perspective, you may want to consider quality over quantity.

What Makes a Good Short Sale Agent?

Short Sale Approval is Subject to Seller Approval of the Terms

Bad Advise From Your Realtor? From Your “Short Sale Specialist”? What Are Our Responsibilities? Where Does The Buck Stop?

Jackie Hawley

Keller Williams Realty, Clarkston MI

Cell: (248) 736-6407

Jackie@JackieHawley.com

Buying Real Estate In Oakland County Michigan

Writing the Offer

Financing

The Home Inspection

Foreclosures and Short Sales 

Read Full Post »

lapeer mi lakefront real estate lapeer michigan homes for saleLapeer Lakefront Homes For Sale. There are 4 homes for sale on Lake Lapeer ranging in price from $375,000-$475,000.

You can get a 2 bedroom cottage on Lake Nepessing for $129, 900 or buy an exquisite 2800 sq. ft. home with 150 ft. of water frontage for $515,000.

If you want a larger lake and willing to go a bit farther north you can a nice home on a couple acres on the Holloway Reservoir if you are also willing to spend $500,000-$700,000.

Lapeer County Lakefront Homes
Lapeer
Search The MLS- No Registration Required
If you would like a more custom search or information about buying real estate in this buyer’s market please call:

Jackie Hawley with Keller Williams Realty, Clarkston

Direct line: 1-800-401-1444Cell: (248)726-6407Jackie@JackieHawley.com www.MiRelocation.com

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up north cottage in lapeer or tuscola countyLooking For That Up North Cottage Without Going Too Far North? You don’t need to go any farther north than Lapeer County or Tuscola Countyin the Thumb area of Michigan to find that perfect get away or second home. Or possibly that retirement home.

You can get a little 700 sq. ft. cottage on 2 ½ acres on the Cass River for as low as $74,400.

There are a handful of houses on 200+ acre all sports Murphy Lake which boasts state land on about 40% of its shoreline.

There are a few lake houses on acreage in the $150,000.

And if your pockets are deeper and can spend somewhere between a million two and two and a half million you can get a waterfront home on 50-160 acres. Call Jackie for a list of homes for sale in Lapeer County (248)736-6407

Lapeer County Lakefront Homes

Lapeer, Michigan

Search The MLS- No Registration Required

If you would like a more custom search or information about buying real estate in this buyer’s market please call:

Jackie Hawley with Keller Williams Realty, Clarkston

Direct line: 1-800-401-1444

cell: 248-736-6407

Jackie@JackieHawley.com 

www.MiRelocation.com

Read Full Post »

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