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Posts Tagged ‘oakland county mi real estate’

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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 Oakland County MI Real Estate– What is Affordable Today May Not Be Affordable Next Spring

Prices are on the rise in North Oakland County MI. They have been for a while now- long enough to trust this is probably a trend and not a fluke. Lake Orion average sales price is up 10% from last year and last year was up 5% from the year before.

The data is similar in the surrounding North Oakland and Lapeer areas. The average sales price in Lapeer County is up 8%. The average sales price in Oxford, MI is up 5%. I searched a larger area of North Oakland CountyOrion, Oxford, Clarkston and Brandon school districts and the average sales price is up 6% from last year and up 10% from 2010. I have more data if you would like to see it. But you get the idea. Prices are going up.

Interest rates are low. I don’t know that they can go any lower, nor do I know how long they will stay this low.

If you’ve been looking for a home in Oakland County MI or Lapeer MI for quite a while and you’re not finding what you want, you may need to change your criteria. With prices on the rise, what is selling for $80K now will be going for $85K or $90K next spring. That’s an example. Prices are increasing in all price ranges. Lakefront prices are especially escalating.

So assuming prices continue to increase, you will have less to pick from for the same price months into the future. And if interest rates go up at all, you will be looking in a lower price range, too.

Search the MLS

What to Expect From Your Oakland County Buyer’s Agent

Financing Your Oakland County Home Purchase

Buying an Oakland County Foreclosure or Short Sale

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

www.MiRelocation.com

www.MacedayLake.com

www.OaklandCountyMichiganLakes.com

www.LakeOaklandHomes.com

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The Job of a Buyer’s Agent in Southeast Michigan

Many agents seem to have the idea that the primary job of a buyer’s agent is to get the seller to come down on his asking price. The more you can get the seller down, the better you’ve done your job. NOT!!

Here in the North Oakland County and surrounding areas there is such a lack of inventory that whenflexing you (the buyer) find a house the objective at this point is to get the house. There’s a good chance you will be in a multiple offer situation. Or if you wait too long you will be in a multiple offer situation. Why would you want to settle for your second or third choice of home because you lost out on the house you really wanted- but your agent felt the need to flex and either encouraged you to write a low offer or didn’t try to talk you out of low balling?

My job as a buyer’s agent is to find you the best house for your wants and needs for a price you are comfortable with, then make sure you get the house and go through as little stress as possible. Sometimes that means paying asking price or over. A well priced home in North Oakland County– specifically the Clarkston, Lake Orion and Oxford MI areas will sell quickly and for close to asking price or over.

There are different negotiating strategies depending on the type of sale and the motivations of both the buyer and seller. For example the motivation of a short sale seller will be different than a non-distressed seller. The short sale seller may place more importance on free possession after the closing whereas a non-distressed seller may be more interested in sale price.

peacock

But the one thing all buyers and sellers have in common is getting to the closing table – not watching their agents flex and strut. It doesn’t matter how much of a peacock you agent is if you don’t get the house you want.

 If you are considering purchasing a home in North Oakland County MI, Lapeer County or southern Genesee County please don’t hesitate to contact the Jackie Hawley team. We have buyer specialists who are professional and always put your interests first.

Writing the Offer

Financing

Foreclosures and Short Sales

Choosing a Buyer’s Agent

Search the MLS

Jackie Hawley
Keller Williams Realty, Clarkston MI

Cell: (248)736-6407
Jackie@JackieHawley.com

www.MiRelocation.com

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What Happens if the Appraisal is Low?

Low appraisals (appraised value coming in lower than the agreed upon sale price) are becoming more common and will probably remain a problem for quite awhile to come. There are many reasons why appraisals can come in low, and it is usually NOT because the buyer was prepared to “over pay” for the house.

I used to define the word “appraisal” as an opinion of value. Back in the day the loan officer got to choose the appraiser; an appraiser on that lender’s approved list of appraisers. Most of the time a local appraiser was used, and appraisals were usually pretty accurate. In fact- contrary to recent pundit opinion– many appraisals tended to come in lower than they should have. Most of the time, the appraiser would justify the sale price, even if the buyer was buying the house at a bargain price.

Today I define the word “appraisal” as an opinion of value derived from data that fits a particular lender’s criteria. Also, because of fairly recent legislation (over the past couple years) the choice of the appraiser is taken away from the lender, and I have been seeing a lot of out of the area appraisers on my listings and when representing the buyer. On a recent purchase my buyers ended up paying for 2 appraisals- both licensed appraisers, both appraisals were within a week of each other- one came in at $300,000 and one came in at $362,000.

Buyers and sellers both want the house to appraise. Buyers are represented now ‘days, and their agent should advise them if they are over paying. Buyers are more savvy and educated than in the past, and by the time they make an offer they know what a house is worth. But the appraisal is usually needed to obtain a mortgage.

So what happens when the appraisal comes in low?

  • The seller can come down in price to match the appraised value
  • The buyer can pony up the difference
  • The buyer and seller can settle somewhere in between
  • The buyer can back out and the house go back on the market

The above scenarios assume the purchase agreement stipulates the house must appraise for at least the sale price. The purchase agreement I use lets the appraised value become part of the negotiations. For example the buyer may offer to pay $200,000 for a house but is contingent on the appraiser coming in no lower than $190,000. This can be very useful in a multiple offer situation.

There is no law that forces a seller to come down in price, just like there’s no law that forces the buyer to go through with the purchase if the appraisal is low. Some sellers can’t come down any farther and sometimes the buyer just isn’t able to pay the difference. This can be a real problem when seller concessions are needed.

Bottom line is: appraisals come in low way too often and there is no right or wrong way to resolve the problem. BUT don’t assume the seller will automatically come down in price because a third party doesn’t agree with the buyer or seller on the value of the home.

If You Work As My Buyers Agent How Much Does That Cost Me?

How Not to Buy a House

All About Short Sales and Why a Short Sale May be Wrong for You

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

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The Perfect House May Not (Probably Not) Exist

Even with the low inventory in North Oakland and Lapeer County MI, I still consider this a buyer’s market. Prices appear to have stabilized, and in some areas prices look to be increasing a bit and inventory is pitifully low, BUT prices are still low as are interest rates. And there are good houses out there, but if you are looking to buy the “perfect” home there’s a good chance it just doesn’t exist.

A house that sold for $200,000 give or take “back in the day” may go for $110,000 or $115,000 today. And it will probably be in quite decent shape. But it IS a used house. There’s a 50-50 chance it is a distressed sale (foreclosure or short sale), and a homeowner who is looking at losing their home probably isn’t staying on top of maintenance. And quite honestly- there are things wrong with just about every house in every kind of market.

So basically, when you start looking for that great new home, don’t expect perfection. No matter what price range you are in, it probably doesn’t exist. Don’t spend every penny you have to get into the house and don’t max yourself out on what you purchase. You will probably need/want to make improvements/changes/updates to the home you buy. There ARE great deals out there- just not perfect houses.

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

For Buyers

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Oakland and Lapeer County Home Buyer and Seller- The Closing is Set. What To Do Now?

real estate oakland and lapeer county miNow that all the contingencies have been met or waived and we have set the closing both buyer and seller have a few items to take care of prior to the closing.

If there is possession after the closing there isn’t a whole lot for either side to do. Seller– you need to let your insurance company know when you are closing and find out if you need to convert to renter’s insurance. Buyer– you already have homeowner’s insurance as a condition of the mortgage so the only thing for you to do is your pre closing walk through.

If possession is immediate (keys turned over at closing) there are a few things both sides need to take care of prior to closing.

First is to make sure the swich of utilities goes smoothly. If the house is on natural gas, the seller needs to call the utility companies to let them know the day possession will pass and give the name of the buyer. The buyer needs to do the same and get the gas and electric in their name. This way the house won’t be without power or heat and there will be no re-conncect fee for the buyer. Here is a link to a page within the DTE web site. Just type in the city or township name and it will get you the contact info for both the gas and electric companies that service that house.

If the house is heated with either propane or oil the seller will need to either bring proof of ownership of the tank to the closing or the contact information of the company that owns the tank. It would also be nice to bring the contact information for the company you currently use if the tank is owned.

If the house is on city water and sewer the buyer doesn’t need to do anything. The bill gets sent to the house and within 45 days after closing the buyer will be filing the property transfer with the township. The seller or your agent should order a final reading of the water meter and eliminate the need for a water escrow.

Seller– you will need to cancel your homeowner’s insurance effective day of or day after closing.

The Nuts and Bolts of Purchasing a Home

Buying a Short Sale

Buying a Foreclosure

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