Feeds:
Posts
Comments

Archive for February, 2012

What If The Clarkston MI House Doesn’t Appraise?

A common misconception is that the house must appraise for sale price and if it doesn’t then the seller has to come down to make up the difference.

First of all everything is negotiable. When you make an offer on a house you can specify that the house must appraise for the sale price. Or you can specify that the house must appraise for X below sale price.

Why would you negotiate in a lower appraisal amount you ask? There are many reasons.

You may be in a multiple offer situation and this is a great way to strengthen your offer.

You may be able to get the seller to come down a bit more if they’re more comfortable about your ability to close.

There are many reasons a house might not appraise and they have nothing to do with value.

First of all the appraiser does not work for the buyer. The appraiser is hired by the lender to protect the lender’s interests- period.

The appraiser has to follow the guidelines specified by the lender as well as government guidelines. I recently had a sale in a subdivision in Metamora- a fairly rural area. The appraiser was told to go no farther back than 6 months but preferably 3 months and no farther than 3 miles from the subject property. The criteria was just plain silly. There aren’t any other subs within 3 miles.

There may not be any comparable sales in the area. This is especially true in neighborhoods where there is a high amount of foreclosures.

If the lender uses an appraisal management company you may get an out of the area appraiser who doesn’t know the area. On the buyer side of a transaction about a year and a half ago we were in a multiple offer situation. 4 people wanted this house the first weekend it hit the market. We were the strongest offer (not the highest- but strong buyers who offered incentives to the sellers other than price), and when the appraiser went out the appraisal came in at $80,000 under the agreed upon price. We changed lenders and ordered a second appraisal and it came in $62,000 higher. 2 licensed appraisers came in $62,000 apart on a house that was selling for less than $400,000.

I actually had one lender brag that the appraisers they used tended to come in low! His attitude was it put the buyer in a position to negotiate a lower price. Well, all the low appraisal did was require my buyer to pony up the difference. We had seen many of the comparable sales the appraiser used and all it did was confirm for the buyer that he was getting a great deal and was fortunate to have the difference in cash so he didn’t lose the house he had his heart set on.

So back to the original question I titled this post with. What happens if the appraisal comes in low?

The seller may come down to meet the appraised value.

The buyer and seller may negotiate a price some place between the original price and the appraised price.

The buyer may have to come up with the difference.

The deal may die and someone else will get the house that you wanted enough to make an offer, put up a deposit for and pay for inspections on. And you get to start your home search over and hope that the interest rates didn’t increase in the meantime.

Search The MLS

Choosing A Buyer’s Agent

Why You Should List With Jackie Hawley

Jackie Hawley
ReMax Encore, Clarkston
Cell: (248) 736-6407

Jackie@JackieHawley.com

www.MiRelocation.com 

Read Full Post »

Voorheis Lake- Lakefront Real Estate Sales

Voorheis Lakefront real estate sales, Lake Orion Michigan. Private, all sports, 250 acre Lake Voorheis. Sales in 2009 were pretty dismal with only 5 total sales- 2 of which were bank owned homes (foreclosures) and sale prices ranging from $150,000-$650,000 with a median sales price of $385,000. That’s right- someone was able to purchase a home on desirable, all sports Lake Voorheis for the disgustingly low bargain basement price of $150,000. I would say that person made a great investment, even if the house needed a major re-hab.

In 2003 there was only 1 sale below $400K reported in the MLS with sales prices on Lake Voorheis topping out at a tad over a million dollars.

There were no sales on Lake Voorhies in 2010 (at least none reported to the MLS). 2011 was a pretty good year considering the state of real estate prices the past 5 or 6 years. There were 5 closed sales last year with sale prices ranging from $253,500-$449,900- 1 short sale and 1 bank owned home. 3 of the 5 sales were in the $400’s with a median sales price of $435,000

There is currently one sale pending on Lake Voorhies- a short sale on Saturn asking $220,000- and 1 home for sale also on Saturn, a non distressed listing asking $244,900. There is also one home on Walmsley Circle for lease asking $2850.

Thinking Of Selling Your Lake Voorheis Home?

Considering Buying A Home On Lake Voorheis?

Search The MLS

Why You Should Choose Jackie Hawley To Sell Your Lake Voorheis Home

Preparing Your Lake Voorheis Home For Sale

Jackie Hawley
Keller Williams Realty, Clarkston
Jackie@JackieHawley.com

Cell: (248) 736-6407

www.MiRelocation.com

Read Full Post »

The Preserve, Lake Orion MI- Home Prices UP Again!

Good news for homeowner in The Preserve in southern Lake Orion MI. Median sales prices were up 3 1/2% from last year and up 7.3% from 2009!

List price to sale price percentage ranged from .4% of asking price to 7.8% of asking price and one house sold for 3% over the list price. There was only 1 foreclosure listing and no short sales. Sale prices ranged from $212,000-$274,000.

The good news for buyers:

  1. Compared to many areas there were relatively few distressed sales even in the worst of times
  2. Prices never got so low as to change the socio/economic make up of the sub
  3. Interest rates are so low you get about $100K in buying power

Number 3 is quite interesting. Let’s look at 3760 Acadia. Last year it sold for $274,000 which gives you a payment of about $1010 (20% down, principle and interest, 3.92% interest rate which was the average for Jan 2012). If you were to pay that same price at 2000’s interest rates you would have a payment of about $1616. Put another way- at the 8.05% interest rate of 2000 you would need to have paid $170,000 to have the same payment as 2011’s buyer.

The good news for sellers is that prices are up the past couple years.

The even better news for buyers is that with interest rates it feels like prices have kept going down. And when a buyer gets approved for their mortgage they are truly getting approved for a certain house payment and those payments are super low.

The Preserve

Lake Orion MI

Search The MLS

Home Evaluation (CMA)

Jackie Hawley
Keller Williams Realty, Clarkston
Jackie@JackieHawley.com

Cell: (248) 736-6407

www.MiRelocation.com

Read Full Post »

How Much Does The Interest Rate Really Affect Your Buying Power?

I am going through old listings that couldn’t sell at the owner’s desired price and through files of home owners who didn’t try to sell after getting a market analysis (CMA) for their home because of the value at that time. The good news for those homeowners is that prices are coming up in the Clarkston area and have been for the past couple years. But for buyers- if you look at your payment instead of price- prices are still very low.

As an example I just pulled up a listing I had in 2007 that was asking $400,000. At that time the interest rate for mortgages was at an average of 6.34%. When I checked the Freddie Mac web site I found the average interest rate last month was 3.92%.

What does this mean from the buyer perspective? If you would have bought that particular house for $305,000 in 2007 your payment (principle and interest) would be the same as if you were to pay $400,000 today. That’s a hundred thousand dollars worth of buying power just in the difference in the interest rate.

But it gets better!!! The property taxes on that house have dropped from just over $6k/year to just over $4600/year. That’s $116/month savings in your house payment.

Interest rates are not going to stay this low forever. Home prices are on the rise– not skyrocketing, but steadily rising. If you have been holding off buying waiting for the market to hit bottom I think we may be there- especially when you factor in the mortgage interest rate and property taxes. AND the cherry on top is the fact that your property taxes will be capped to 5% or the rate of inflation as long as the house is your primary residence. So for the example above it will take quite a while before property taxes are back at 2007 amounts.

Clarkston Lakefront Homes For Sale

Waterford Lakefront Homes For Sale

Lake Orion Lakefront Homes For Sale

For Buyers

For Sellers

Search The MLS

Buing a Foreclosure or Short Sale

Jackie Hawley
ReMax Encore, Clarkston
Jackie@JackieHawley.com

Cell: (248) 736-6407

www.MiRelocation.com

Read Full Post »

Lake Oakland Lakefront Home Sales- Great News If You’re Selling! Buyers- Play Games And You May Lose Out!

Good news for current homeowners on Lake Oakland in Clarkston and Waterford MI. Prices are up and homes are selling quickly. If you want to live or own a cottage on Lake Oakland, you may need to wait for the right house to come up, but when it does, don’t hesitate or play games with the offer price or you may never get that house. Or worse you may end up in a Lake Oakland home in a year when prices are higher and interest rates will probably be higher, too!

The average sales price in 2011 was up 13% from 2010. Most houses sold within a few per cent of asking price if they didn’t sell for full price or more. Of the 12 sales on Lake Oakland in 2011 5 homes sold for full price or more. One house even sold for 34 1/2% over the list price. The longest time on the market was 34 days and many sold within the first week.

There are currently 4 pending sales on Lake Oakland– 3 normal sales and 1 bank owned home- ranging in list price from $209,900-$400,000. The sad news is if you are buying there are only 4 active listings– all non distressed sales- ranging in price from $189,900-$715,000.

2010: 14 units sold 2011: 12 units sold

2010 average sales price: $194,677 2011 average sales price: $223,320

2010: 6 bank owned sales and 3 short sales 2011: 5 bank owned sales and 1 short sale

2010: sale prices ranged from $95,000-$300,000 2011: sale prices ranged from $98,700-$560,000

Please don’t hesitate to contact me for additional information about homes for sale on Lake Oakland. With prices still low it is a good time to buy a cottage or second home or to upgrade to that lake house. Interest rates are still great and FHA will mortgage up to just under $300,000 so you don’t need a lot of cash (liquid) in order to buy right now. FHA 203 loans will allow you to mortgage the money needed to fix up a house that has been neglected or even beat up as many of the bank owned homes are.

Jackie Hawley
ReMax Encore, Clarkston MI
Cell: (248) 736-6407
Jackie@JackieHawley.com

Lake Oakland

Oakland County MI Lakes

Lakefront Homes For Sale In Oakland County MI

Market Evaluation (CMA)

Search The MLS

Read Full Post »