Posts Tagged ‘oakland county michigan real estate’

How to make your Oakland County Michigan VA offer stronger

VA offers are not what makes a seller’s heart flutter. Too many things can go wrong. In my experience you tend to get poor appraisers who are not local. The appraised values tend to come in low.

One of the primary reasons a buyer goes VA is because it is 100% financing. Good for the buyer. Not for the seller. Zero down buyers tend to be weak buyers. VA buyers typically ask for the seller to pay for their closing costs and there are some fees the buyer isn’t allowed to pay and those usually get picked up by the seller.

So from the seller’s perspective- Why would they look at your VA offer?

If VA is the only financing option for you, there are a few things that can strengthen your offer.

Don’t ask for the seller to pay for your closing costs. Check with your lender, but I believe you can finance the 4 or 5% by paying a slightly higher interest rate. When you ask for a seller to pay your closing costs, you are asking that seller to take 4 or 5% less than the appraised value.

Don’t ask for anything that isn’t being offered. If the seller isn’t offering to leave the appliances, don’t ask for them. Don’t ask for the lawn mower. Don’t ask the seller to pay for a home warranty.

Don’t ask for less possession after the closing than the seller is asking for. There is a reason a seller is asking for 30 days or 45 days. You may even want to offer that possession time free of charge.

Don’t use your home inspection as a “honey do” list. You are buying a used house. Minor repairs and maintenance items are a part of home ownership.

Offer full price or even over. Especially if you are in a multiple offer situation. Also, that low appraisal may come in closer to the asking price than an offer that is right at asking price.

Obviously, if you can go conventional that is ideal. Many lenders are offering 5% down conventional mortgages

If you are considering buying a home- VA or not- please don’t hesitate to call Jackie Hawley with ReMax Encore.

Why VA?

The Job of a Buyer’s Agent


Choosing a Buyer’s Agent

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Commonly Asked Questions About the North Oakland County and Lapeer County Home Purchase- What is the Deposit For? How Much Should it Be?

earnest money deposit for offer to purchaseWhen you  make an offer on a house in North Oakland County MI or Lapeer County MI one of the questions I will ask you is: How much of a deposit to you want to give me? Partially because it is a space on the purchase agreement that needs to be filled in, but mostly the size of the deposit shows the seriousness of your offer.

The EMD AKA earnest money deposit AKA good faith deposit AKA deposit ties you to the agreement. Once the offer has been accepted I need to have that check deposited within 48 hours (2 business days). You get the deposit money back if any of the contingencies fail to clear; e.g. you find problems on the home inspection and wish to cancel the purchase agreement, you are entitled to get your deposit back.

If all the contingencies are cleared and you just change your mind and want to walk away from the house, you lose your deposit and it would go to the seller. The larger the deposit is, the less likely you will walk for no reason. Or because you found a “better” home to purchase. From the seller’s perspective if you only have $500 at risk there is nothing to keep you from continuing to look at new listings and walking from the sale if you find something better. If you have $5,000 or $10,000 or more at risk, you are more likely to proceed to closing.

There are typically 4-6 weeks between writing the offer and closing. In between contingencies are being cleared; typically the home inspection, clean title supplied by the seller, and obtaining your mortgage which takes the bulk of the 4-6 week time frame. Once we proceed to closing your earnest money deposit is credited against your closing costs and down payment.

So basically, when making an offer to purchase a home in North Oakland County MI or Lapeer County MI bigger is better when it comes to the deposit.

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Buying a Short Sale Listing in Oakland and Lapeer Counties

Buying a Foreclosure Listing in Oakland and Lapeer Counties

Oakland County MI Lakefront Homes for Sale

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My North Oakland County Home Sales Predictions for 2011

I going to pull out my crystal ball and take a look into the future. I figure I can’t do any worse than any ofnorth oakland county home sales predictions for 2011 the “experts” we hear on the radio or watch on TV or read about in the paper.

As I wrote in a recent blog post, currently sale prices in North Oakland County MI were up slightly in 2010 over 2009 and the current inventory is low (active listings). This sounds almost like a seller’s market and might be if prices weren’t down so much from 2008, 2007, 2006…..

When I have been updating my sales stats for various North Oakland County subdivisionsI am finding the same to be true- home sale prices seem to be stabilizing and in many cases even increasing slightly. I think some of this is due to a decline in foreclosure sales– many being replaced by short sales which typically sell for more than bank or government owned homes.

Last week I spoke to one of the larger area foreclosure brokers and he told me he expects a spike in new foreclosure listings and assignments the first 2 months of 2011 and a large increase in inventory for the first quarter of 2011, then for it to slow back down to a manageable pace again.

So my predictions:

Prices will stay about the same and maybe drop a bit the first quarter of 2011. When the inventory gets back to the current levels in the spring, prices will start to increase a bit. We won’t see the rapid increase in prices we saw in the 2000-2005 years, but I believe prices will start going up.

I think inventory will stay on the low side until more homeowners have equity in their homes again or lending criteria relaxes enough so an upside down owner can buy and rent out their current house without the draconian conditions they have to abide by today.

I believe a hindrance to the rise in home prices will be due to the ongoing appraisal problems. Appraisers need to start giving a dollar value to quality and less importance on $ per sq. ft.

My advise:

  • If you are a potential home buyer for North Oakland County MI call your agent now so you don’t miss out on the foreclosures that will be hitting the market the first quarter of this year- foreclosure listings in North Oakland County MI to not sit on the market
  • Do NOT wait until spring to start looking
  • If you are looking for a lakefront home and want to enjoy this summer on the water you need to either eliminate short sale listings from your search or get serious about finding a home now
  • The same if you want to be moved by the next school year. Don’t wait too long to start looking unless you are willing to eliminate short sale listings from your search criteria
  • Sellers- It’s hard to know what to tell you. Right now inventory is low but expected to pick up very soon with a glut of foreclosures for you to compete against. If you wait until after the first quarter you will have low inventory on your side but a quarter of foreclosures closing which will be the comparable sales appraisers will use

I  need to make a point to come back to this post quarterly to see if my predictions are on track.

Market Conditions for North Oakland County MI

North Oakland County MI Lake Information

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photo from Flickr courtesy Islandguy Jonathan H 

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