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Archive for January, 2013

Oakland County Home Prices on the Rise BUT Housing Is Cheaper

When most Oakland County MI home buyers purchase a house they are buying under a certain house payment amount. Many factors go into that amount including home price, property taxes, mortgage interest rate. Your mortgage pre-approval is really an approval for a certain monthly payment- principle, interest, taxes and insurance or PITI. The purchase price in your pre-approval letter should be qualified with a cap on the interest rate and property taxes.

Example: Borrower is approved for a mortgage amount of $400,000 wih an interest rate not to exceed 3.7% and property taxes not to exceed $5,000.

This means you cannot mortgage $400,000 if the property taxes are $7500 or the interest rate goes up to 4.5%. Conversly, you can mortgage over $400,000 if the property taxes are $2000 and/or the interest rate is 3.2%. The goal is to keep the house payment under a certain $$ amount.

Though home prices in Oakland County have been on the rise, property taxes have been on the decline, and mortgage interest rates are still low.

Another example: I had an Oakland County home listing in 2007 for $400,000. At that time the property taxes were $6203/year and the average interest rate in 2007 was 6.34%. The average intersest rate in 2012 was a mere 3.66% with the months of November and December boasting interest rates of 3.35%. Property taxes for that house were only $4429 or $148 less per month than in 2007. You would need to pay $600,000 today for that same Oakland County house to have the same payment as the buyer in 2007. Another way to look at it is the seller would have had to come down to $295,000 for the buyer to have the same payment as he would if he bought for $400,000 today.

Or $295K sale price in 2007 = $400K sale price in today

Or $600K sale price today = $400K sale price in 2007

2013 will be a good year to purchase your Oakland County Michigan home. Prices are on the rise, but still quite low, and take advantage of the low property taxes and super low mortgage interest rates.

Jackie Hawley, Realtor
ReMax Encore, Clarkston

My direct line at the office is 1-800-401-1444.

My cell number is 248-736-6407.

And my email address is Jackie@JackieHawley.com

Search the MLS

Homes for Sale in Oakland County MI
Homes for Sale in Clarkston MI
Homes for Sale in Lake Orion MI
Homes for Sale in Oxford MI
Homes for Sale in Waterford MI
Homes for Sale in Lapeer MI

www.ClarkstonMichiganRealEstate.com
www.OaklandCountyMichiganLakes.com
www.LakeOrionLakeFrontRealEstate.com

www.MiRelocation.com

Preparing Your Home for Sale
Why List With Me

Marketing Your Home

Choosing a Buyer’s Agent

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CCS = SALE PENDING

Tired of calling your agent with Oakland County homes you find on Realtor.com or on your agent’s IDX site (consumer MLS) only to be told that many of those Oakland County homes are pending? And many of those same homes are still showing as active a month or two or six later? I would be frustrated and start to wonder if MY agent was lying to me. I would start to wonder if MY agent had another reason for not wanting to even SHOW me those homes.

CCS = SALE PENDING

Your agent isn’t lying. The CCS status is an ACTIVE status and is highly misused. CCS was originally for Oakland County MI homes that had an accepted offer subject to the sale of another house. We called that a 72 hour contingency clause, and basically the seller would keep their home on the market and if another acceptable offer came in the first buyer had 72 hours to remove their contingency and go through with the sale (prove sale of their own home or buy without selling) OR back out and the seller would proceed with the second offer.

Fast forward to the day of the short sale!Short sale” is simply another contingency in an offer to purchase. It is a seller contingency and is no different than a buyer contingency of mortgage approval or satisfactory home inspection. It IS a contingency that normally takes longer to satisfy than other “normal” contingencies. The sale is contingent on the seller obtaining a reduced mortgage payoff from their lien holder(s)- reduced enough to accommodate the offer price in the offer to purchase.

CCS = SALE PENDING

At this point a listing agent often changes the listing status to CCS – contingent continue to show. Let me be absolutely clear at this point:

  • The buyer and seller have a fully executed purchase agreement.
  • That purchase agreement contains contingencies just like every other fully executed purchase agreement
  • One of those contingencies is a short sale contingency which can take several months to satisfy

I don’t know why a listing agent would still leave the listing with an active status (CCS is an active status). Does that agent REALLY think buyers will be lining up to place back up offers on a pending home? Are the current buyers so flighty they may walk and lose their earnest money? Or is the original offer so poorly written that the buyer IS ABLE to walk without consequences? Or possibly the listing agent wants to keep the listing with an active status to pick up buyer leads? CCS in the MLS still sends our listings to Realtor.com, MoveInMichigan.com, etc. Or maybe this is just becoming such a common practice that most agents don’t even think and automatically mark their pending short sale listings CCS.

Whatever the reasons:

CCS = SALE PENDING

Jackie Hawley, Realtor
ReMax Encore, Clarkston MI

My direct line at the office is 1-800-401-1444.

My cell number is 248-736-6407.

And my email address is Jackie@JackieHawley.com

Search the MLS

Homes for Sale in Oakland County MI
Homes for Sale in Clarkston MI
Homes for Sale in Lake Orion MI
Homes for Sale in Oxford MI
Homes for Sale in Waterford MI
Homes for Sale in Lapeer MI

www.MiRelocation.com

Preparing Your Home for Sale Why List With Me
Marketing Your Home

Choosing a Buyer’s Agent

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Is the Appraisal for Your Protection? Oakland County MI Real Estate Home Sales

When buying a home in Oakland County Michigan a standard contingency is financing (the buyer obtaining a mortgage for the house). Normally, part of the financing process is an appraisal, and the cost of the appraisal is born by the purchaser.

  • So is this the purchaser’s appraisal?
  • And is the appraisal for the protection of the purchaser?

The answers are no and no.

If it really was the buyer’s appraisal, the buyer would get a say in who the appraiser is. Or at least the buyer’s loan officer would get a say.

Loans mortgage appraisalsThe appraisal is for the protection of the lender. The lender loans money to a purchaser, and that money is secured by the house and, rightfully, the lender wants to make sure the value is there.

Because of some of the asinine changes in the mortgage process over the past few years, the loan officer is no longer able to hire, or even speak to, the appraiser. The lender (loan officer) contacts an appraisal management company who then assigns an appraiser. And like in anything in life, there are good and bad appraisers.

So you the consumer can interview and choose the best real estate agent to work with. Interview and choose the best loan officer to work with, choose the best home inspector, best insurance agent, best title company … But no say on who appraises the home you are trying to buy.

Appraisers themselves are finding themselves under scrutiny because some want to blame them for the housing mess we are currently in. And the result has been overly cautious appraisers. And many inconsistencies in appraisals.

I’ve had multiple appraisals on the same house come in as much as $100K+ apart. Another one where 2 appraisers for the same house within a week of each other came in $74K apart.

I had another sale where I was on the listing end (a short sale) and it was another property with multiple appraisals. Between the buyer and the lien holders there was a total of 5 appraisals. 5 appraisers came in with 5 different values.

horse racing first and last equalOne of the main problems I’m seeing on the appraisals is the appraisers aren’t giving value for quality. Everything is size and location with very few adjustments, and those adjustments are for things like walk out basement vs standard basement. Maybe a few thousand for a finished basement vs an unfinished basement. If the comparable sales are in the same sub you may see an adjustment for location within the sub.

I’m not seeing credit given for quality. Top of the line Anderson or Pella windows will get zero value. Wood interior doors as opposed to the typical builder’s grade plastic feeling doors will get zero value. Upgraded cabinets, counters, light and plumbing fixtures will get ZERO value.

Now take 2 houses in the same or similar neighborhoods, and house a has builder grade everything and house b had the same floor plan built but upgraded everything mentioned above– should both those houses sell for the same price?

From a buyer perspective you may be thinking “Great! I can get $50K mattress money extra downpayment if house doesn't appraiseworth of upgrades for free.” Maybe not. You may find the perfect house and are willing and able to pay for quality. You spend $300+ on a home inspection. You spend $300+ on an appraisal, and the appraiser comes in $30K lower than the agreed upon price. The seller does not have to come down on price. If  the seller won’t come down, and if you still want the house, you would need to come up with the extra $30,000. If you don’t have it, you won’t get the house. You may have to settle for mediocrity in order to get a mortgage.

By the criteria many appraisers now feel they need to use, with the value determined solely by size and location, that is the same as saying the first place horse in the Kentucky Derby has the same value as the last place horse in the Kentucky Derby- all the same age, about the same height and all the same class of horse.

When I represent a buyer, I will perform a market analysis on the house you want to offer on. I will give you my opinion of value and back that opinion with comparable sales. I will also give my opinion on what I think the appraised value will be, and if there’s a difference, you will need to prepare yourself to possibly lose the house you want or pony up the difference. And if you are a person who feels that quality has value, be prepared to come up with additional down payment.

Hopefully this gives you a basic understanding about the appraisal process and value. If you have any questions or would like to see a copy of our purchase agreement, please don’t hesitate to call or email me.

My direct line at the office is 1-800-401-1444.

My cell number is 248-736-6407.

And my email address is Jackie@JackieHawley.com

Search the MLS

Homes for Sale in Oakland County MI
Homes for Sale in Clarkston MI
Homes for Sale in Lake Orion MI
Homes for Sale in Oxford MI
Homes for Sale in Waterford MI
Homes for Sale in Lapeer MI

www.MiRelocation.com

Preparing Your Home for Sale
Why List With Me

Marketing Your Home

Choosing a Buyer’s Agent

Read Full Post »

Lake Oakland Lakefront Home Sales Real Estate Sales Clarkston and Waterford Michigan

Home prices on all sports Lake Oakland are up from last year- both median and average sales prices. More houses have sold in 2012 than in 2011 and a smaller percentage of those homes are short sales and foreclosures. There are currently 6 homes for sale on Lake Oakland and none of those are distressed listings.

Unit Sales:

2011- 12
2012- 17

Average Sale Price:

2011- $223,320
2012- $313,341

Median Sale Price:

2011- $181,000
2012- $245,000

Foreclosures (units):

2011- 4
2012- 5

Short Sales (units):

2011- 1
2012- 1

There are currently 6 active listings on Lake Oakland– ranging in asking price from $260,000-$1,599,000- all are normal listings (not foreclosures or short sales).

Lake Oakland is a 235 acre all sports lake located in Waterford and Clarkston, MI.

Compliments of Jackie Hawley of the JHawley and Associates Real Estate Team at ReMax Encore in Clarkston MI.

Cell: (248)736-6407

Jackie@JackieHawley.com

www.SearchMichiganMLSListings.com

www.LakeOaklandHomes.com

Sylvan and Otter Lake

www.OaklandCountyMichiganLakes.com

Waterford MI Lakefront Homes For Sale

Clarkston MI Lakefront Homes For Sale

White Lake/Highland MI Lakefront Homes For Sale

Lake Orion/Oxford/Addison MI Lakefront Homes For Sale

Lapeer MI Lakefront Homes For Sale

www.LakeOaklandHomes.com

www.MacedayLake.com

www.LakeOrionLakeFrontRealEstate.com

For Sellers- www.JHawleyAndAssoc.com

For Sellers- www.AreaRealEstateExperts.com

www.ClarkstonMichiganRealEstate.com

www.MiRelocation.com

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Writing an Offer on an Oakland County Michigan Home

writing an offer on southeast michigan homesUnless you’re a cash buyer, our standard purchase agreement contains a financing contingency. Even if you are pre-qualified you need this contingency to protect yourself. If your financial situation changes after writing the offer (such as job loss) you need the protection of the financing contingency. It also protects you if the house has problems with mortgaging, such as appraising too low, clouded title, etc. When it comes to rural properties, the property can present many issues when it comes to obtaining the mortgage. I won’t get into those specifics here, but the bottom line- a standard contingency in the offer to purchase is financing.

Once the seller accepts your offer, their house is off the market while you fulfill the contingencies in the offer, so it is very important to submit a pre-approval letter with the offer. The pre-approval letter will state the down payment required from you, the type of mortgage you’re getting, how much of a mortgage you can afford, and needed seller’s concessions if any.

Actually, it’s important to get that letter before you even start looking at houses. I need to know what you can afford (or what you’re comfortable with- I bought much lower than the bank was willing to lend me) and the type of mortgage you will be getting. If you are getting a rural development loan, I will know not to look in Lake Orion for example, but 3 miles north into Oxford the houses would qualify- even in a sub. If you are going to go FHA, I would know not to show you fixers. Etc. So meeting with a good, honest, experienced loan officer, before you start looking, is also muy important. If you don’t already have a loan officer you like and trust, I can supply the contact information for one. More about that in a future post.

At the time we write the offer we also need to decide if you would like a home inspection, and what type of inspections you should get. Now some people think if they get an FHA loan that there is an automatic inspection built into that process. That is not correct. Your lender will send out an FHA approved APPRAISER who will look for repairs that FHA deems necessary, but that person IS NOT AN INSPECTOR.

If your offer is contingent upon the sale or closing of another property, we would include that in the offer. But beware- bank owned homes do not take offers subject to the sale of another property. If we make an offer subject to the closing of another property that you currently have an accepted offer on, we need to submit a copy of that offer with our offer to purchase. We want to submit as strong an offer as possible and to relieve the seller of any doubts of your ability to close. It’s much easier to negotiate from a position of power.

Other things included in the offer to purchase include “possession.” Or how long you are willing to let the seller live in the house once the sale is closed. They usually ask for a specific amount of time in the listing- 30 days or 60 days for example. After the closing the house is yours, and if there is possession, the current seller is now your tenant. They will typically pay you rent in the amount of your new house payment for any time they stay after closing, and that money is typically escrowed from their proceeds at closing. Possession is something we negotiate up front.

We also include time frames in the initial offer to purchase. We give them a certain amount of time to answer our offer. We give them a time frame in which you will make your formal mortgage application and a time frame for you to get a full mortgage commitment. We will include a time frame to close by.

For the most part, the above are the most popular contingencies included in an offer to purchase. Of course everybody’s situation is different, and sometimes there are contingencies that may be unique to your situation. I wrote an offer recently that was subject to the buyer finalizing their job transfer. But no matter what the contingency is, we must include time frames.

One other issue that is not covered above is the EMD or earnest money deposit also known as a good writing an offer on southeast michigan homesfaith deposit. It is usually a check I collect from you at the time we make the offer that shows your “good faith.” Hence the term good faith deposit. If there’s a problem on the inspection or financing, and the sale doesn’t close, you get that money back. If everything goes just fine, and we close on the property, that deposit is applied toward you closing costs/down payment. If everything goes just fine and all the contingencies are fulfilled satisfactorily, and you just change your mind and back out- then that deposit goes to the seller.

Hopefully this gives you a basic understanding of how the offer making process goes. If you have any questions or would like to see a copy of our purchase agreement, please don’t hesitate to call or email me.

My direct line at the office is 1-800-401-1444.

My cell number is 248-736-6407.

And my email address is Jackie@JackieHawley.com

Search the MLS

Homes for Sale in Oakland County MI Homes for Sale in Clarkston MI Homes for Sale in Lake Orion MI Homes for Sale in Oxford MI Homes for Sale in Waterford MI Homes for Sale in Lapeer MI

www.MiRelocation.com

Preparing Your Home for Sale Why List With Me

Marketing Your Home

Choosing a Buyer’s Agent

Read Full Post »

Lotus and Maceday Lakes Lakefront Real Estate Sales

Maceday and Lotus are both all sports lakes and are connected for a total acreage of 419 acres. Maceday Lake is located in Waterford, Michigan. The majority of Lotus Lake is located in Waterford Township, but the northern tip falls into Independence Township (more commonly known as Clarkston). There is a public access site at Williams Lake Rd just east of Maceday Lake Rd.

Maceday and Lotus Lakes are all sports lakes- great for the water skier or jet skier in the summer and snowmobiler in the winter.

For the fisherman, Maceday Lake is a designated trout lake and was stocked last fall with 1,000 lake trout with some of the fish being up to 18 inches long and ranging in age from 2-4 years. Maceday Lake was also stocked with 12,000 rainbow trout in 2010 and another 12,760 rainbow trout in April, 2010. It was stocked with 15,000 splake (brook trout/lake trout cross) in March of 2009 and 13,300 in April of 2010.

In 2005 sale prices on Maceday and Lotus lakes ranged from $245,000 – $1,150,000.

In 2009 sale prices ranged from $76,000 – $590,000. 9 of the 12 sales in 2009 were under $200K and one of those sold for under $100K. Of the 12 sales in 2009 3 were bank owned, 3 were short sales, and there were 3 sold listings where the listing agent didn’t bother filling in the lake name field of the MLS. That is 25% of the sold listings that would not have come up in a search looking specifically looking for Lotus or Maceday Lake.

There were 13 sales reported in 2010 ranging in price from $100,000-$475,000. There was only 1 bank owned sale, but over half the total sales were short sales (7 short sales). In general prices in 2010 were higher than in 2009- see charts below.

In 2011 there were 12 closed sales on Maceday and Lotus Lakes ranging in sale price from $57,000-$650,000- 1 bank owned. 1short sale, and 10 regular (non distressed) sales.

So far in 2012 there have been 19 closed sales ranging in price from $120,000-$770,000- 2 bank owned and 3 short sales. So far this year the average sales price is $282,085 and a median sales price of $255,000 and a total sales volume of $5,359,615.

Please don’t hesitate to contact me if you are considering buying or selling a home on all sports Maceday Lake or Lotus Lake.

Please don’t hesitate to contact me if you are considering buying or selling a home on all sports Maceday or Lotus Lakes.

Jackie Hawley, Realtor
ReMax Encore, Clarkston MI

Cell: (248)736-6407

Jackie@JackieHawley.com

www.MacedayLake.com

www.SearchMichiganMLSListings.com

Lower Straits Lake

www.OaklandCountyMichiganLakes.com

Waterford MI Lakefront Homes For Sale

Clarkston MI Lakefront Homes For Sale

White Lake/Highland MI Lakefront Homes For Sale

Lake Orion/Oxford/Addison MI Lakefront Homes For Sale

Lapeer MI Lakefront Homes For Sale

www.LakeOaklandHomes.com

Sylvan and Otter Lake

www.LakeOrionLakeFrontRealEstate.com

For Sellers- www.JHawleyAndAssoc.com

For Sellers- www.AreaRealEstateExperts.com

www.ClarkstonMichiganRealEstate.com

www.MiRelocation.com

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Maceday Lake Lotus Lake Home Sales

Home sale prices on Maceday and Lotus Lakes for 2012 ranged from $120,000-$770,000 with an average sales price of $282,085 and a median sales price of $$255,000. There have been 19 sales so far (sales data can trickle in for the next month or so) and $5,359,615 in total sales volume on Lotus Lake and Maceday Lake.

In 2011 there were 12 home sales on Maceday Lake and Lotus Lake with an average sales price of $240,650 and a median sales price of $221,950.

There is one active listing on Maceday Lake asking $875,000.

Maceday and Lotus Lakes are connecting all sports lakes in Waterford and Clarkston MI.

Please don’t hesitate to contact me if you are considering buying or selling a home on all sports Maceday or Lotus Lakes.

Jackie Hawley, Realtor
ReMax Encore, Clarkston MI

Cell: (248)736-6407

Jackie@JackieHawley.com

www.MacedayLake.com

www.SearchMichiganMLSListings.com

Lower Straits Lake

www.OaklandCountyMichiganLakes.com

Waterford MI Lakefront Homes For Sale

Clarkston MI Lakefront Homes For Sale

White Lake/Highland MI Lakefront Homes For Sale

Lake Orion/Oxford/Addison MI Lakefront Homes For Sale

Lapeer MI Lakefront Homes For Sale

www.LakeOaklandHomes.com

Sylvan and Otter Lake

www.LakeOrionLakeFrontRealEstate.com

For Sellers- www.JHawleyAndAssoc.com

For Sellers- www.AreaRealEstateExperts.com

www.ClarkstonMichiganRealEstate.com

www.MiRelocation.com

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