Macomb County Real Estate Notes

Someone Needs to Take Control of these Underwriters

Ed & Cindy Knight (Realty Executives e-Group) — Tue, 29 Sep 2009 14:41:16 -0700

Okay it happened again - I think Someone needs to take control of these underwriter's and tell them they are NOT appraisers or Real Estate agents. Are they aware we are trying to sell homes out here and keep the economy moving? Not to be rude but some where during the mortgage melt down and real estate collapse they decided they were God.

Here's just a few examples - a few weeks back we received a call from the mortgage broker saying the underwriter did not like the appraisal because it was too high. Excuse me but when did underwriters become licensed appraisers? The best part is this home was priced "well below market" and had multiple offers. Supposedly she used the Automated Valuation Method to determine the appraisal was to high.

Well let me just say this - Real Estate is way to complex to be using this system. For one the AVM does not take into account multiple offers. It does not look at what is currently available for sale, in other words what buyers are seeing. Nor does it know that the home it may be using was trashed out or filled with mold. Yet the banks have decided that the underwriters can use this system and kill deals. As I said Someone needs to take control of these underwriters - better yet the Banks. I won't even go there.

Then the other day I am talking to the mortgage broker to get my weekly update and she tells me that since the buyer was putting a large amount down, they were not doing an inside appraisal. Okay did someone do a drive by? Nope we used the AVM (gulp) and we have the value at $68,000 and asks if that's what we needed. Ah No you apparently have the wrong file because we sold that 1800 sq ft detached condo with a fully finished basement and 2 car garage for $150,000. I nearly went through the phone to wring her neck. You need to get someone out there now to do an appraisal because the AVM is whacked. Makes me wonder if she ever looked at the purchase agreement.

So here's where the straw broke the camels back. We get an approval from the underwriter with one small condition, it appears that the buyer missed an initial on the purchase agreement. So they send it back to clear the condition and she decides that maybe they better get a second appraisal (at the buyers expense). You have got to be kidding me? This is a perfect buyer, slam dunk and she is buying a condo well below the market. Really someone needs to get control of these underwriters and remind them they are dealing with peoples lives.

It really makes me wonder if these underwriters have ever bought a house before? Sometimes I think we are dealing with robots ABC 123 and not people with common sense.

I was beginning to think it was just me. Then yesterday I read a post from one of my favorite blogger Jay Thompson - well it appears he is running into the same problems. How about You??

Millions More Foreclosures Coming

Ed & Cindy Knight (Realty Executives e-Group) — Sat, 12 Sep 2009 17:22:36 -0700

Via John Mulkey, Housing Guru (TheHousingGuru.com):

If the economy is improving, do we really have millions more foreclosures coming? According to the U.S. Treasury, the answer is yes. In written testimony to Congress, Assistant Secretary for Financial Institutions, Michael Barr said that, regardless of the success of mortgage modification efforts, we should still expect millions more foreclosures.

Mr. Barr’s testimony is certainly not welcome news for those anticipating a significant recovery in the housing market. In fact, it is an indication that significant recovery is still years away.

And there are other factors that confirm the fragile state of both the economy and the housing market. Recent reports have indicated that there are almost 3 million active, interest-only loans with a total value of almost $1 trillion, with loans of about $500 billion set to reset within the next 30 months. Then we have a large group of Option Arm mortgages set to recast during the next 2 years. These loans have a combined value of more than $125 billion.

The rising number of bankruptcies, up 36% in the second quarter over last year, with wealthy families filing at double that rate, creates a “perfect storm” of disastrous consequences for the housing market. With the likely prospect of millions more foreclosures coming, home prices and home sales will remain depressed until the market can achieve stabilization. And achieving stabilization will be a slow and painful process.

The Housing Guru: The one source for all your housing questions

Getting to the Finish Line Requires Training and Commitment

Ed & Cindy Knight (Realty Executives e-Group) — Fri, 28 Aug 2009 22:31:56 -0700

Last weekend Ed and I ran The Crim Festival of Races, a 10 mile race through the streets of Flint MI. It's a fun race but getting to the finish line requires training and commitment. This means running in the rain, getting up early when it's hot or if we you have early appointments and running when you really do not feel like it. Bottom-line it requires a commitment and a goal.

For Ed and I running started back in 2002 - our sons had all left for college and being empty nesters kinda made me feel well kinda empty. So, I decided to raise money for the Arthritis Foundation and run a full marathon. However, I was not a runner and a full marathon is 26.2 miles. Needless to say Ed was not feeling my excitement but he came around once he met the coach with Joints in Motion. We started our training in April of 2001 and completed the Walt Disney World Marathon in Florida January 2002. That meant running in the spring with rain, the heat of the summer, into the fall and more rain, then into the cold and snow of Michigan. Many times thinking I must be nuts but remembering the whole time that getting to the finish line requires training and commitment and we had a great goal.

Since, then we have run the Crim several times, I did the 60 mile Breast Cancer Walk and now we are training for the Brooksie Way, a 1/2 marathon in Rochester Hills. So you can say we know about commitment.

Now you might ask what does all this have to do with real estate? Well if you think about it everything in our life starts with a goal or finish line - even our birth. Then once we are born we are always setting mini goals - to walk, to talk to say our ABC's, to get through grade school, high school and on to college. Find a partner, get a job or start a business. Maybe it's not as clear as running a race but getting to any finish line requires training and commitment. Hang on I am almost there.

Today, Ed sold a home in Macomb Township to a young single mom and she is now one step closer to her goal of owning a home. But it wasn't easy getting to this point. She looked at tons of homes and actually wrote about 5 offers. She started off slow writing just below asking price but she lost out. She searched again this time writing $5,000 over asking but again she was beat out. She viewed homes in the pouring rain, she drove through tons of traffic and again found another home only this time she wrote $10,000 over asking. Darn she was beat out again but committed to her goal she pushed on leaving work early, getting in and out of the car in the summer heat and then finally she found another home, she offered $20,000 over asking price but was beat out again. Back to the goal or the finish line and finally all her training and commitment paid off.

Today she has a place she can soon call HOME - almost to the finish line. Are you setting goals, training and giving it your all? Are you committed?

I am Seeing Tears from the Seniors

Ed & Cindy Knight (Realty Executives e-Group) — Tue, 25 Aug 2009 22:46:49 -0700

Okay, now I am seeing tears from the seniors on our listing appointments and I don't like it one bit. Over the past couple weeks we have had a few listing appointments involving seniors that need to downsize. These sellers are in the over 70 age group, better know as the "Silent Generation".

Since this generation was born in and around the Great Depression they are usually thrifty, they learned to save for a rainy day and were raised to pay off their mortgages and own their homes free and clear. Unlike the generations after them they were also very loyal and generally worked for the same company their whole life. When you talk to them most can remember standing in bread lines, walking to school (usually miles) in old shoes and eating bacon grease with bread.

But now even this generation is starting to feel the effects of the real estate crash. Last week we sat across the kitchen table from an elderly couple that sold their home in 2002 and used the proceeds to purchase a condo for $172,000. After careful review of the comparables we informed them that they could list the condo for $130,000 but that they should expect a sales price around $120,000 - $125,000. Then as I look up from my paperwork, I am seeing tears from the seniors sitting across the table from me.

As we try to comfort them - we are reminded of other seniors we have met with this year and like the others they too are scared...

worried about their health care or lack of it
worried about their pensions
wondering what happened to the companies they worked for
worried about their children if they should lose their job
worried - that they may run out of money

Downsizing is never easy but in Macomb County right now, many seniors are being forced to leave hard earned cash on the table, when they sell. Money they could of used to live on and it's happening more and more. This is why I am see tears from the seniors I meet.

While these seniors were paying their mortgages off or paying cash for their homes, many of their neighbors were putting very little down and getting large mortgages. Now these neighbors are simply walking away - foreclosing and leaving a mess of the property values.

While the "Silent Generation" asks us "When do you think it will turn around?" or "Do you think it will get worse before it gets better?"

Marcus Grill of Shelby Township MI

Ed & Cindy Knight (Realty Executives e-Group) — Wed, 12 Aug 2009 23:59:58 -0700

Looking for Polish food? Then check out Marcus Grill in Shelby Township.

Being of Polish decent I can tell you this is as close to grandma's food as it gets. I recently took my parents there and they agreed and said they for sure would be back. You'll be happy to know that the Polish entrees are made from scratch daily and you can tell.

They originally opened in Detroit about 80 years ago, opened another restaurant in Sterling Heights and now we have a Marcus Grill in Shelby Township and it's close to the office. Which is good for those days when I just can't make it home to cook.

Besides the Polish entrees they are famous for their Detroit Orginial Marcus Burger - an all steak burger in a steamed hot dog bun - a secret recipe since 1929. These are the best and only $3.00 - imagine that! The Detroit News even featured on their website.

Marcus Grill is open for breakfast, lunch and dinner and they offer nice size servings. My favorite is the mini Polish patter which comes with 1 cheese roll or Palachinski (crepes), 2 pierogi, 2 potato pancakes and a cup of chicken dumpling soup. Usually, half goes home. But many times Ed and I just split this and with the rolls it's enough for lunch.

The owner seen here is so sweet and always there to say hi. Now if you are planning a party Marcus Grill in Shelby Township also offers a room for private parties and will even cater your party. The bar as seen below has a large seating area.

You'll notice right way how clean it is and how friendly the staff is too. They are in the process of putting together a website but until it is complete you can visit www.MarcusGrill.com to view the menu.

The restaurant is located at 55690 Van Dyke between 25 & 26 Mile on the east side of the street. Here is a map. A must visit if you are in the Shelby Township area near Van Dyke and 25 - 26 Mile area.

MC Dental Care in Shelby Township MI

Ed & Cindy Knight (Realty Executives e-Group) — Tue, 11 Aug 2009 00:05:24 -0700

Looking for a new dentist? Then I would recommend MC Dental Care in Shelby Township MI. Whether you are a life long resident of Macomb County or new to the area and you are in search for a new dentist office, make an appointment with Dr. Michelle C. Dziurgot.

You immediately notice once you enter the lobby that this office is very clean and inviting. The waiting room is furnished with a large flat panel TV, loads of current magazines, play area for the kids, is tastefully decorated and offers a mini fridge filled with bottled water.

At MC Dental Care in Shelby Township you'll be amazed at how well this office is run. The rooms are all very bright, computerized and offer top of the line dental equipment. You'll also noticed the staff is always well dressed and very pleasant. Since Dr. Dziurgot was honorably discharged from the U.S. Navy that may explain why her office runs so smooth.

Now no one likes to go the dentist but one thing we have noticed about Dr.Dziurgot is she explains everything and has a great chair-side manner, along with her dental assistants - making you feel very at ease.

MC Dental Care in Shelby Township is also know as "The Home of the WOW Office" and is located at 50202 Schoenherr in Shelby Township on the east side of Schoenherr just south of 23 Mile. The office phone number is 586-247-8000 or you can make an appointment on-line at their office website. You can read more about Dr. Dziurgot here in this Hour Detroit article and you'll find several great reviews on-line too.

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A Real Estate Agent Must be Present to Open the Lock Box

Ed & Cindy Knight (Realty Executives e-Group) — Sat, 08 Aug 2009 19:21:28 -0700

A real estate agent Must be present to open the lock box. So, if your agent is giving you the lock box code because they are to busy or to lazy to show you the home, than I suggest you find another one. Why? Because they are actually placing you at risk of trespassing. You may not know this but as a member of the local MLS when we list a home we sign a contract with the seller that states "Broker, broker's representatives, agents and sub-agents are hereby granted access to the property". No where does it say that the buyer has permission to enter the home - so by doing so you may be trespassing.

It seems this is becoming an epidemic and not just in Macomb County. In fact, this exact topic was addressed this month in the MAR Publication legal section. Then yesterday we received a call from a buyer asking for the lock box code on one of our listings. When we told him "a real estate agent agent must be present to open the lock box". He stated "the broker down the street gave me the code with out coming to the home". Really? Well today I sent off an e-mail to that broker stating that this is not only unprofessional but it is placing these buyers at risk not to mention the sellers they represent in the event something happens. The broker did contact me and said this was not acceptable practice and that he would look into it.

Our MLS listing contract also states "Owner(s) shall indemnify and hold Broker, Broker's representatives, agents and sub-agents and cooperating broker harmless from any and all liability for any reason as a result of injury to persons or damage or loss to property arising out of the showing". But does that protect you? What happens if no agent is present and something comes up missing, is damaged or if someone gets hurt? If you are not with an agent where does that leave you??? Can you then be held liable for damages?

Over the past few months several of our agents have come back with stories...

They have found buyers wondering around in the home without an agent, that gained access via a lock box code.
One of our agents would not allow a buyer in a home because their agent was not present. The buyer got right in her face and said "Fine I'll just wait till you leave and said some choice words"
Ed would not allow a buyer in the home he was showing only to find the same buyer inside the next home he was showing because the agent gave him the lock box codes.
We have even had buyers tell us that their previous agent just gave them the lock box to view homes on their own. These buyers were going in flooded basements, mold filled homes and even walking around with flash lights in the dark.
One buyer we know of viewed the home himself, had the agent write the offer and closed without the agent ever viewing the home

Sorry to say folks these agents are not working in your best interests. If they are to busy to take the time to show you homes how will they handle the offer and the closing? How can they give you professional advice on the market and the home? You may want to check and see if they are representing you or the seller. Better yet if you decide to sell with them in the future will they allow buyers access to Your home too without being present??

While preparing for this post I did some checking and obviously the public agrees a real estate agent agent must be present to open the lock box - here's one from Trulia and Yahoo. However, there was also a blog where this guy actually gave investors step by step directions on how to gain access to bank owned homes without a REALTOR®. Shame on the agents that gave him the codes.

What do you think? Is this okay or is it Trespassing?

Ocean Breeze Restaurant in Shelby Township

Ed & Cindy Knight (Realty Executives e-Group) — Fri, 07 Aug 2009 23:50:48 -0700

Ocean Breeze Restaurant in Shelby Township is located at 51748 Van Dyke just north of 23 Mile across from the Shelby Township Senior Citizen's Center. They serve breakfast, lunch and dinner.

The restaurant is always clean, the tables are bussed quickly and the waitresses are always very pleasant. They also offer very generous servings and the prices are pretty reasonable too.

We do not eat breakfast out too often but when we do we always go to Ocean Breeze Restaurant in Shelby Township. We're about 20 minutes away but it's worth the drive. We especially like their omelet's and the fact that they are not greasy. If you are heading out on Sunday morning there's usually a wait - but they move them in and out pretty quick.

Speaking of wait - Ocean Breeze offers a nice size waiting area just inside the doors, which really comes in handy in the winter months. There are also plenty of tables and booths inside so you never have to wait long.

The thing we notice is how well organized they are and attribute that to the managers who are always near by. This allows the tables to be busses quickly so customers are not waiting to long.

Ocean Breeze Restaurant in Shelby Township offers a nice lunch menu and for dinner several specials to choose from at reasonable prices. They also offer a good cup of coffee and bring a small pot right to the table. As of June 15, 2009 the Macomb County Health Department stated they had No Critical Violations.

If you're in the area be sure to stop by and enjoy a great breakfast, lunch or dinner. Here's a map along with some reviews.

Wine Tasting Event in Shelby Township MI

Ed & Cindy Knight (Realty Executives e-Group) — Tue, 04 Aug 2009 22:22:01 -0700

Don't miss the Wine Tasting Event in Shelby Township MI this Wednesday, August 5 th from 7 pm - 9 pm at the Cherry Creek Golf and Banquet Center This event is being hosted by the Shelby Township DDA (Downtown Development Authority) and the Utica-Macomb Daybreakers Kiwanis Club.

This Wine Tasting Event in Shelby Township MI will feature 100 wines and 16 micro-brews from Michigan and around the globe. Ted Moss, Sommerlier at Vince and Joe's Gourmet Market and vendor representatives will be there to answer any questions you may have about their products.

There will also be Live Music and a strolling finger food buffet. So grab a few friends, family or co-workers and come join us for an Evening of Fine Wines and Specialty Suds and experience this special Wine Tasting Event in Shelby Township MI.

Tickets can still be purchased at Vince and Joe's Gourmet Market (55178 Van Dyke), Nitsches Meat and Deli Shoppe (52175 Van Dyke) and Cherry Creek Golf and Banquet Center (52000 Cherry Creek Drive) or at the door the evening of the event. Tickets are $15.00 each.

Cherry Creek Golf and Banquet Center Shelby Township MI

Ed & Cindy Knight (Realty Executives e-Group) — Tue, 04 Aug 2009 15:31:17 -0700

The Cherry Creek Golf and Banquet Center is located in Shelby Township on the south side of 24 Mile just west of M-53. I have personally attended several events in their banquet facility - a wedding shower, baby shower and a wedding reception and I was pleased with the food and the service each time.

Opened in 1995 and designed by Lanny Wadkins / Mike Bylen this course is a fun 18 hole, regulation course that offers 4 sets of tees measuring from 5012 to 6784 yards. The course is just beautiful and has gentle rolling hills, cherry trees and a variety of oak and ash along with water. You can view the golf course here.

Although, I am not a golfer (but would love to be) I understand from several golfers I know that the course is great for all levels. All that I spoke with commented on what a beautiful golf course it is and the fun they have with the tree. Cherry Creek Golf and Golf Banquet Center also offers a 50 stationed driving range with 7 target greens of various yardage. Along with 2 putting greens and 3 practice greens with bunkers for putting and chipping. They also offer golf lessons - which I just may think about taking after visiting this course.

Their Lakeview Room where I attended a wedding reception was just beautiful. It over looked the golf course and featured panoramic views of the course and the lake. The veranda and patio just outside the room also added space to the reception and allowed us to enjoy a beautiful summer evening.

This would be a wonderful place for a bride and groom to take photos for their wedding album. Someone we have personally used in the past Scott Green Photography offers a beautiful Wedding Gallery of the Lakeview Room and more.

Cherry Creek Golf and Golf Banquet Center has been featured in many of the areas finest publications like Hour Detroit Magazine - "Best Public Golf Course"; Crain's Detroit Business - "Best Clubhouse" and more. While there recently we also checked out the Ryder Cup Grille which is open daily for breakfast and lunch and dinner during golf season. Along with the Pro shop that offers equipment and many large brand names.

So if you are visiting Southeast Michigan and would like to check out a wonderful golf course, with plenty to offer be sure to check them out at 52000 Cherry Creek Drive, Shelby Township, Michigan 48316 or contact them at 586-254-7700 at the pro shop or 586-254-6001 at the Banquet Center. View a few more photos below....

Vince and Joe's Gourmet Market of Shelby Township

Ed & Cindy Knight (Realty Executives e-Group) — Sat, 01 Aug 2009 23:49:21 -0700

When Vince and Joe's Gourmet Market of Shelby Township opened in October 2006 it was an immediate hit. They moved in as the anchor store and soon filled the strip on either side of them bringing along many businesses. Honestly, before they moved in the corner of 25 Mile and Van Dyke was pretty dull. Now that corner is hopping with business which is great for the area. We just love it since our office is right across the street.

Vince and Joe's Gourmet Market is family owned and operated and was started in 1983 by Vince Domenica and Joe and Maria itale. Their first store in Clinton Township is on Garfield and Canal. That store has grown over the years no doubt allowing them to open their second store in Shelby Township. Their stores are always very very clean and all the employee's very pleasant. They offer great sales and the prices are very reasonable.

From the minute you walk up you can see the care that goes into their store. They offer flowers and fruits and vegetables out front weather permitting. Upon entering the store you'll see right away that they purchase fresh good quality fruits and vegetables. You can always find what you are looking for too. There is a small florist area in case you want to pick up flowers for the table or that someone special. Next you'll see the cheeses and boy do they have a ton of them to choose from. Some I never even heard of.

Next comes the deli and it is always packed so you know the lunch meat is fresh. Across from the deli you'll find the Market Grill which is basically a small restaurant offering all kinds of food for lunch or dinner. Fresh bread and pizza too. A great stop for many of our agents. Next to that is the wine and let me tell you they have it All. No one can deny the fact that Vince and Joe's offers some of the freshest and best quality fish and seafood, meat and poultry. They also have a few aisles of groceries, dairy section along with a coffee collection you can buy in bulk. Now my favorite - the bakery goods - they are to die for...you just can not walk out without picking up something sweet. If you have some time to spare you can stop in the Cafe and enjoy some lunch, desserts and coffer or ice cream.

Yes, for sure Vince and Joe's Gourmet Market of Shelby Township was a great addition to the area and we wish them continued success. Below is a video of the store so you can see for yourself.

Diamond Pet Salon of Macomb Township MI

Ed & Cindy Knight (Realty Executives e-Group) — Thu, 30 Jul 2009 22:54:46 -0700

My hair dresser is Sheila at Diamond Pet Salon in Macomb Township. My mom and dad meet Sheila a few years ago when they sold her condo in Mt. Clemens. Her pet salon is located at 46808 Hayed Rd. just south of 21 Mile in Macomb Township, 48044. Sheila is a great groomer and trust me I have been to quite a few. My parents are pretty fussy when it comes to my grooming and as you can see she did a great job. Don't you just love the bows and scarf. Sheila's mom makes these by hand.

At Diamond Pet Salon you'll notice right when you walk in the door that they care about their customers. They start talking to you and put you right at ease. They even make my parents comfortable about leaving me. Sometimes I have to wait a little while but I don't mind because the cages are clean and right out in front, so I can see what's going on. Besides it gives me some time to chit chat with my friends.

Now I have to tell you I am a little nervous when it comes to getting groomed but Sheila knows just what to do. When it's my turn Sheila gives me my bath and then starts making me look beautiful. She blow drys my hair and then starts trimming away. I get my ears done, my nails trimmed and Sheila stays with me the whole time. She also calls my mom and dad to let them know when I am almost ready, so I don't have to wait around. This gives mom and dad a heads up to finish with their appointments. Then comes the bow and scarf and when my mom and dad come to pick me up, they are always so happy.

I have posted a few photos below so you can see how clean and bright the salon is yourself. My name is Honey and I would be more than happy to talk to your little honey or you can have your parents call my parents at the number to the right. Just in case you are wondering they also offer extra spa services if you would like.

See I told you it was clean. I hope if you need a groomer for your pet you check out Diamond Pet Salon in Macomb Township. Here is a map and if you would like to make an appointment you can reach Sheila at 586-566-0099 and let her know Honey sent you.

Is Rent to Own Right for You?

Ed & Cindy Knight (Realty Executives e-Group) — Tue, 28 Jul 2009 13:49:34 -0700

Boy have times have changed.

Up until a few years ago the only leases we drafted were on our own rental properties. That was until the banks came into town and ran the real estate market into the ground. Now many homeowners are being forced to rent their homes or foreclose, if they want or need to move on. The local MLS we belong to - MiRealSource shows the following data for 2008 in Macomb County - 896 homes and 458 condos were rented out by real estate agents vs 12 homes and 10 condos in 1995. Pretty amazing for a town that is not what you would call a vacation hot spot.

So what does all this mean?

It means that homeowners today are becoming landlords, only not for money. Fact is many are actually paying for someone to live in their home, till the market turns around. Especially, once you factor in the increase in property taxes once the home goes from owner occupied to non-owner occupied. As you can see from this millage rate chart, property taxes jump quite a bit. To make matters worse homeowners are finding that a huge percentage of the tenants have less than perfect credit and many are either in foreclosure or headed for one - making the homeowners very uneasy.

However, there may be something that could help since the homeowners still want to sell and many of the tenants really want to own. But...

Is Rent to Own Right for You?

Let's take a closer look:

First - the tenant/buyer and the landlord/seller have to draft a purchase agreement and determine a price. But what price? Today's price? What if the market falls more? What if the market turns around?
Next - the tenant/buyer has to come up with a non-refundable deposit - but how much? If they walk will they lose it?
What amount will the rent be and what amount will go towards the purchase? $100, $300? Lenders say anything over "Fair Market Rent" can be used.
When should the option end and a closing occur? 1 year, 3 years?
What if the tenant/buyer can not get approved for the mortgage? Should the seller extend the contract or evict?
What if the home does not appraise? Will the seller come down or the buyer come up?
Will the buyer be allowed to make major changes to the home?

As you can see it is more complicated then one might think. Everything needs to be spelled out.

Can anything else can be done?

Yes, instead of a Rent to Own there is a clause built right in the lease that states IF the seller decides to sell the tenant will be given first right of refusal.

Give us a call and let us help you determine what Option is best for you!

Hey Bank of America the Unemployment lines are Long!

Ed & Cindy Knight (Realty Executives e-Group) — Tue, 14 Jul 2009 09:43:00 -0700

Yesterday I sat and listened to my calm husband hit his breaking point, just as I did last year dealing with the dreaded "Short Sale" process.

As a husband and wife team we each have duties and mine is to take a file from bottom line to closing. Well last year I had a seller that needed to relocate his family. Our seller tried to do the right thing - he tried to sell his home via a short sale rather than foreclose. However, after 4 offers in 12 months the bank was unable to get him to the closing table. I swore at that point I would not process another short sale.

Of course, Ed being a man was going to show me how it was done. His 1st short sale ended up having 3 offers in a 7 month period and the seller finally said "forget it we're just walking". Then he started his next one - it's now been 10 weeks and the bank has done Nothing. The seller calls and is told one thing, Ed calls and is told another. They call together via a three way and are told X will be done and a week later X is not done. So yesterday Ed lost it with the bank.

But while he was on the phone I heard him say "yes I know the negotiator has 350 files one her desk". Imagine that the United States unemployment numbers for June 2009 were 9.5% and according to the Center for American Progress it has not been that high since 1983. Yet the negotiator is so swamped it takes us months to get an approval. Did you hear that Bank of America the unemployment lines are Long?

Just think about the changes IF they hired just a few more people

Less money would be paid out in unemployment benefits
Maybe hiring someone would save that person from foreclosure
If my sellers home goes into foreclosure he'll ruin his credit - preventing him from adding $$ to the economy
Of course both agents lose a pay check - so less money goes into the economy from them
For sure if the bank forecloses they will end up with at least $30,000 less
The area surrounding my sellers home will go down in value
Causing more people in the area to be further underwater
Imagine ALL the man hours saved avoiding hundreds of calls to the short sale dept

You call yourself Bank of America - well I say you step up to the plate and help out America. Hire a few people from the unemployment lines, Save the American tax payer money by avoiding foreclosures, avoid more foreclosures.

Unless of course you really do not want to do short sales and if that's the case Please let us know now instead of wasting everybody's time.

Free Movie Night featuring Madagascar 2 in Shelby Twp MI

Ed & Cindy Knight (Realty Executives e-Group) — Mon, 13 Jul 2009 13:41:45 -0700

Are you old enough to remember the drive-in?

Back when I was a kid the drive-in we went to was the Gratiot drive-in. It was located at Masonic and Gratiot, in Roseville. My parents always picked a nice warm summer night with no clouds. Once the plans were made to attend my dad would get the biggest pot he could find and make some popcorn. As dad made the popcorn, mom would make the kool-aid and get the cups and napkins together. Dad usually made 2 batches of popcorn - one with salt and butter and one with butter and a package of dry cheese from the mac and cheese box. Then he'd separate a paper grocery store bag and fill it up and off we would go.

Of course, the Gratiot drive-in is long gone but Shelby Township is offering something similar to the old drive-in. So mark your calendar

Free Family Movie Night - featuring Madagascar 2 - Friday, July 17

the gates open at 8:00 pm and the movie starts at 9:00 pm.

So pack up the kids, bring along a blanket or two and some treats or buy them at the concession stand. There will be bounce houses to help pass the time till the movie begins.

It all takes place at the Packard Proving Grounds located at 49965 Van Dyke, Shelby Twp just south of 23 Mile on the west side of Van Dyke. The same location as the Shelby Township Farmers Market held Saturday mornings.

Will the Housing Bubble Burst Bankrupt Your City or State?

Ed & Cindy Knight (Realty Executives e-Group) — Wed, 08 Jul 2009 23:09:20 -0700

On July 1st homeowners in Macomb County went to their mail boxes only to find their 2009 summer property tax bills. Of course, the calls immediately started "Why are my taxes so high when property values are dropping?" or "Why is my house listed so much lower than my assessment?" We see it daily.

But just about everyone including our cities, townships, states and federal government are feeling the ramifications of the housing problems. But the real question is Will the housing bubble burst bankrupt your city or state?

According to the Center on Budget and Policy Priorities "at least 48 states addressed or are facing shortfalls in their budgets for the upcoming years". I knew California and Florida were in trouble financially but I was totally blown away when I saw the chart on the CBPP site showing the budget gaps projected for 2010, in all the states.

So it started me thinking about a Question I asked one of the Macomb County Commissioners a few months back at a meeting.

"When property values were lower you managed to get by just fine on the money you received from taxes Then values went up and you received more money, SO what did you do with all the extra money?? His answer simply amazed me - I was told that when they receive money they MUST spend it. They must by state and federal laws find somewhere to spend that money. In other words they added more and more programs as values went up.

But now that property values are down what are they going to do? Here in Michigan everyone of our sellers are being way way over assessed. We are seeing homes selling for $80,000 but they are being taxed at $160,000. So what's going to happen next year when they are collecting even less money? The cities had no problem raising our taxes up but they are adjusting very Sloooow.

Will our cities, counties and states go bankrupt? Or will they just figure out a new way to assess our homes so they can raise property taxes to keep the programs they created? Or will the government cut programs and if so which ones?

I have not attended any Tea Parties but I am beginning to think it may not be a bad idea.

What do you think? Homeowners do you feel you are being over assessed? Real estate agents what's your area like?

Shelby Township Farmers Market Open

Ed & Cindy Knight (Realty Executives e-Group) — Fri, 03 Jul 2009 23:31:40 -0700

Did you know Shelby Township had a Farmers Market?

Well last Saturday Ed and I decided to visit the Farmers Market and took some photos so we could share it with others. The market is located on Van Dyke just south of 23 Mile in Shelby Township. Admission is Free but part of the proceeds go to the Packard Proving Grounds Foundation, to help with restoration of this historic site.

So how many times have you driven by the Packard Proving Grounds? Did you know that it is listed on the National Register of Historic Places? Something you should really visit and while there stop at the farmers market and buy from some of our local farmers and business owners.

We purchased some vegetables that were really quite tasty. Biggby Coffee is there if you get an early start and need a pick me up, along with a tent with honey, maple syrup, bakery goods, some crafters, our local farmers and more.

Here is a Tour we did of our visit

Are Real Estate Prices Being Held Back?

Ed & Cindy Knight (Realty Executives e-Group) — Fri, 03 Jul 2009 07:25:10 -0700

Like many real estate agents I am getting more than a little ticked off at how the government banks are handling the foreclosures and the sale of homes and condos. In my opinion, they are running the real estate market right into the ground. Of course, right behind them are the appraisers who are actually "untouchable" now thanks to the HVCC Home Valuation Code of Conduct. One of my favorite blogger's Chris Griffith wrote about this recently. Right behind them are the underwriters who yes work for the banks.

So do I sound ticked off? Well I am and right now I am beginning to think it's some kind of conspiracy to cripple the middle class. No I am not going nuts it's just I am seeing first hand what is happening to the real estate market here in Macomb County, just outside Detroit. I just can't take it anymore and I think people need to know what's going on. I think the banks are holding real estate prices back.

Here's why -

last month we sold a home that was listed at $149,000 it had 7 offers and our buyer offered $169,900. Now that means the market is talking right? Not quite - although our buyer's offer was the best and his offer was accepted the appraiser brought the value in at $152,000. So much for the market talking. The best part is this home sold in 1988 brand new for $150,000 and the township well they are collecting taxes based on a value of $241,000.

a few weeks back we sold a condo for $92,000 actually we thought it was a pretty good deal. Guess our 20 years of real estate experience means nothing - the appraiser said it was worth $83,000. The estate was appalled because their mom paid $80,000 in 1979. Of course, they were forced to sell since we could not fight the appraiser.

this tops them all - a condo sells for $83,000 this time the appraiser says it's worth $85,000 - ready for this one? The underwriter says No - she ran the automated evaluation system and said it was worth $73,000. What???

here's one that I have first hand knowledge of - we bought a condo in 2003 for $105,000 bank owned. These units sold back in 1994 for $65,000 and in 1988 brand new for $58,000. But in the past 3 years the banks have ran the market right into the ground - $95,000, $62,500, $59,900, $49,900, $44,900, $40,500, $38,000. Urgh

Now remember Macomb County was NOT an area that went way up in value. No this area did not see double digit appreciation in a couple years. We had normal appreciation and then the banks came in and ran it right into the ground. The other day I saw a home selling in Detroit for $850 yep you read that right. No it was not a wreck. It was a 3 bedroom brick home with a basement and a garage and a few miles from where I grew up. Sick just sick.

So what do you think?

How Will Cap and Trade Effect Your Real Estate Business?

Ed & Cindy Knight (Realty Executives e-Group) — Wed, 01 Jul 2009 10:49:18 -0700

How will Cap and Trade effect you and your real estate transaction. How will it effect this nation at a time when the middle class is hurting Bad. Especially, here in Michigan Read more below.

Via Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.):

Real estate is local when it comes to market conditions and market trends. Real estate differs from region to region in styles, architecture and amenities generally speaking. For instance; in Florida fireplaces are not the norm whereas in cold winter areas such as Colorado, fireplaces are a standard addition to a home. In some areas of our country people have wood burning stoves and others have coal burning furnaces. There are areas of our country such as here in Florida where you would not dare live without Air Conditioning but in many homes in Washington for instance, air conditioning is more of a luxury than a necessity.

So when we are discussing the effects of cap and trade in your real estate business you will need to take into account the region in which you live as some areas will be more effected than others.

Here is a really good interactive map from the New York Times. The map I posted below is the map of the votes in the House for and against the Cap and Tax bill that just passed the House. But if you click on the link of the New York Times map, it is interactive.

You can move your mouse over the map and see who voted, what party they belong to and their district. You will be able to see that no matter whether they were democrats or republicans if they are in the farm country of America, high manufacturing areas of America, low energy bills of America and the heartland of America- they voted NO on this bill and for very good reasons.

"For a household of four, energy costs go up $436 that year, and they eventually reach $1,241 in 2035 and average $829 annually over that span. Electricity costs go up 90 percent by 2035, gasoline by 58 percent, and natural gas by 55 percent by 2035. The cumulative higher energy costs for a family of four by then will be nearly $20,000.

But direct energy costs are only part of the consumer impact. Nearly everything goes up, since higher energy costs raise production costs. If you look at the total cost of Waxman-Markey, it works out to an average of $2,979 annually from 2012-2035 for a household of four. By 2035 alone, the total cost is over $4,600." Heritage Foundation.

You will notice that the states where the votes were yes are also the states that already have the highest energy bills. The states that voted no are mostly states with presently low energy bills.

Instead of calling this to Cap and Trade- We can really call it the Tax On Electricity Bill.

How does this information pertain to real estate agents? If you live in the lower energy pricing states you are going to be seeing huge increases in household energy bills. If you live in states that are coal powered or oil powered you will see the largest increases ever in your energy bills because those energy sources are going to be punished with taxation.

How is that going to effect home prices?

How is that going to effect movement in and out of your state?

How is that going to effect your real estate office utility bills and who is going to pay for this?

The House is at it again. This was a 1,300 page bill and again as with so many large bills was not read by most of those that voted yes or no. What is it that they don't get? The American people expect our leaders to read what they vote on.

So what else is tucked away neatly into this bill that perhaps no one knows the full implications of yet?

How about the Federal imposition and takeover of building codes? Your local planning and building offices will not be qualified for any Federal funding of any kind unless they adopt what the FEDS say is the new energy efficient building standards. This will create higher prices in building new homes which is then passed on the homebuyers and then you as a real estate agent are also effected because less buyers will be able to afford to buy a new home built . Not to mention having to wait for the Feds to come and inspect the builders and the homes.

How about the new Federal Energy Nazis Inspectors who will come and rate your home before you can sell your home. So before you can list a home for sale, the seller will have to wait for the Federal inspectors to come out. DMV lines anyone? Once that inspector comes out, he or she will give the home an energy rating. If the home does not meet the guidelines the seller will be required to do the work necessary to bring the home up to energy standards before they can sell the home! Can we say money? Does that mean that there will be homeowners who will become prisoners in their homes because they can not afford to make the energy repairs that the feds require? Is that an invasion of your privacy as well as an attack on your property rights?

Hmmm, how is that going to effect short sales where the seller has no money to make the repairs and adjustments?

How is that going to effect your ability to get listings in a timely manner?

How is that going to effect your seller who is about to lose their home in a foreclosure?

How is that going to effect the seller who has to relocate for their job?

How is that going to effect the estates with heirs having to do these repairs and such when there won't be any money until the estate is sold?

I wonder if our House of Representatives and our Congress men and women EVER thought to actually ask us in the field working this business day in and day out how these bills will effect the housing market?

Of course, the US will be living Cap and Tax while the real perpetrators of dirty air like China and India get off scott free. There will be an unfair advantage in pricing products and manufacturing to the point that if a US company even stands a chance of staying in the manufacturing business will have no choice but to move their company oversees which in turn will cause a massive layoff of people increasing the already high unemployment problem we are facing in our country.

How will the unemployment effect your real estate business?

How will the unemployment effect the REOs and massive foreclosures in your community?

How will the unemployment effect home values as you get more and more vacant properties in your area?

If you are an agent in America's farmland you will begin to see farms no longer being able to produce a profit. Farms use a lot of energy. Energy use will be punished. This is why nearly every politician from a farm land state no matter what party they are affiliated with voted no to this bill. Their districts will suffer terribly. As this happens we will be buying more and more produce from other countries with far less health standards than our own. I don't trust foods, especially produce from China or other countries except Europe. But we don't import our veggies from Europe!

How is this going to effect your real esate business if you live and work in a farm land state?

When it comes down to the nitty and the gritty about this bill you must remember that GE is the biggest supporter of this bill. They stand to make billions of dollars from the passage of this bill. The politicians voting yes on this bill, many of them are getting paid to vote yes. And Al Gore will become the very first GREEN billionaire. It is just too bad that he is not a real capitalist. He could not become a billionaire playing fair and square. Instead, he has an unfair advantage, legislation to make him filthy rich. Not exactly the free market way. It is all about the money.

Contact your Senators now to vote NO now. Click on this link to find your Senators and contact them by email, phone and fax today. Let them know how this is going to effect your business and your community homeowners and buyers. Pass this on...

Happy Mother's Day

Ed & Cindy Knight (Realty Executives e-Group) — Sun, 10 May 2009 00:38:34 -0700

Have a wonderful Mother's Day

I wasn't sure which bouquet to get you .....so I decided to pick them all.

Has the Macomb County real estate market hit Bottom?

Ed & Cindy Knight (Realty Executives e-Group) — Sun, 12 Apr 2009 08:30:11 -0700

For the past year we have been tracking the total number of listings, pending and Foreclosures, in our area. Why? We were looking for trends or signs that the Macomb County, Michigan real estate market hit the bottom. We figured once the foreclosures started to drop off we would finally see the bottom and maybe even get a bit of a rebound.

Funny thing is last year at this time we were estimating half way through 2009 we would start to level off again. But that was before the September 2008 financial crisis.

So what trends did we see in our tracking?

Using just homes for sale over the past year we saw the number of total listings go up then drop off. Last year around this time we started at 6810 active listings. We peaked in July at 7126 and have steadily dropped since then and currently sit at 5254 homes for sale, as of April 1, 2009. Below is a chart showing the number Active Listings vs the number of active Foreclosures or Real Estate Owned / REO properties, in Macomb County.

Looking closer at the chart below, we found the number of foreclosures in the active listings was climbing starting at 951 last year. They peaked in January at 1178 but even more interesting the foreclosures have dropped every month since then and as of April 1, 2009 they were down to 827. Finally!

Next we looked at the homes that went Pending each month, we saw the total number increase from 943 last year in April, then in September they peaked at 1258, slightly dropped in December and again started to climb ending at 1332 this April. What really caught our eye was the fact that most of the pending sales were foreclosures.

Does this mean the Macomb County real estate market hit Bottom? Lets take a closer look.

It appears the number of homes currently for sale are down but only because many sellers were simply priced out of the market. These are the sellers that want to move but do not want to foreclose or do a short sale. Yet simply do not have enough equity or money to move. Believe it or not this glut may actually help the market.

The good news is with the inventory getting smaller and less foreclosures hitting the market, we are actually seeing a bit of frenzy in the market. That may be why sales are up.

Even better the number of pending sales this year look much better than they did last year. And it's the beginning of spring.

Now for the bad news. The drop in foreclosures since January is due in part to the Ban on foreclosures by Fannie Mae and Freddie Mac. According to a good article I read by Mary Kane in the Washington Independent the ban ended March 31, 2009. That may mean we are ready for another round.

With the Metro Detroit area hurting from the auto market the last thing we need are the foreclosures to come back. But we are hoping between the Neighborhood Stablization Program under President Bush and the $8000 First Time Home Buyer Credit, we will continue to bring out the buyers and increase sales.

Then maybe the Macomb County real estate market will finally hit bottom and take a ride back up. Something we really need in this area.

People not government made this nation Great

Ed & Cindy Knight (Realty Executives e-Group) — Sun, 29 Mar 2009 19:10:42 -0700

Today, while out on appointments I again heard the bail out commercials - telling people how they could get out of paying their IRS tax liens, how they could reduce their credit card debt even how they could reduce mortgage payments and the amount owed on the mortgage. The commercials blame " the Big Bad IRS, the Credit Card Companies and the Banks".

When will We the People of the United States of America stand up again and be STRONG? When will we Stop asking companies and the government to take care of us every step of the way.

What happened to the United States of America? What happened to our people? Does our word mean nothing? Is there any personal responsibility left? We were a nation like no other - people came here from all around the world to be Free, to work hard and be successful. A country where people could stand on their own but stand together. A country where the government could lend you a helping hand but not one where we needed them to continue holding our hand.

Are things a little tough now? Yes, but that's what makes us Strong. People not government made this nation great. Here's a little history lesson. Do you know who Patrick Henry is? He pushed for the Bill of Rights and said this about government " If you give too little power today, you may give more tomorrow. But the reverse of the proposition will not hold. If you give too much power today, you cannot retake it tomorrow: For tomorrow will not come for that purpose.

He also left a note with his will that read in part " Reader! whoever thou art, remember this, and in thy sphere practice virtue thyself, and encourage it in others." you can read the whole note here by James Elson.

Again People not government made this nation great and it was done with Hard Work, Trust and Virtue - by ourselves and by encouraging others. To prove my point see what happens to these boys when they receive encouragement from others. Not the government but We the People...(sorry you'll have to wait for the commercial)

Macomb County Commissioners meet Macomb County REALTORS®

Ed & Cindy Knight (Realty Executives e-Group) — Sat, 28 Mar 2009 17:57:40 -0700

Yesterday, we attended a Meet and Greet of local REALTORS® and the Macomb County Commissioners. I have never had an interest in government nor do I care to listen to what politicians have to say, especially since they all say one thing and do another. But with government spending more and more and getting bigger and bigger, while people are losing houses, jobs and cutting Waaaay back, we figured we would attend and see what they had to say.

So what was discussed???

After the normal introductions we listened to what the Commissioners had to say as they talked about the great services Macomb County has to offer like the Smart Bus Service, the Macomb Orchard Trail, our Library and much more. The REALTORS® talked about the county's declining property values and how we could use the Neighborhood Stabilization Program, to rid our streets of foreclosures. We discussed job loss and how the commissioners wanted to bring businesses to Macomb.

The Commissioners also discussed the Macomb County tax increase of .36 mills which was passed by a 13 -12 vote. With a final vote expected in April, at the public hearing. Since property taxes in Michigan are a huge thing when purchasing a home I asked "what will we be getting for the extra money"? Basically I was told Nothing. Why? Because the County has a shortage in their budget.

Now this is exactly why I do not like government. They pushed for more and more and services as property values increased along with property taxes. But now that the property values and taxes are coming down, rather than cut services back to 1995 levels they ask for a tax increase. Are they cutting back Yes.....just like everyone else. But they may need to cut back much more. Our residents are house poor and strapped for cash and I wonder if the services the county offers even benefit many of our hard working residents.

Of course our beautiful roads came up and the fact that ours are some of the worst roads in the county. One thing I did not know was that the Road Commission is not run by of the board of commissioners.

Another heated topic was if Macomb County should move from a 26 member board of commissioners and a chairman to a County Executive, with less than half of the board members. The REALTORS® really did not say to much but boy did we hear from the commissioners that were present. You could plainly see who wanted want. In case you do not know about this. The process started a few years back and last year the voters of Macomb approved a charter commission to draft an overhaul of the county's government structure to move towards a County Executive.

My concern of course is which commissioners would be cut? Would I lose my voice? Who will be the Executive? From what party? Will the county be better off financially? If we cut half of the part time commissioners and add an Executive with a huge staff (think government) and increase the wages of the remaining commissioners will we be better off? Is this something we need to move Macomb County forward? Or are we better off the we are right now??

You be the judge - here's a few opinions from Charter = County, Macomb County Republican Party and an article by the Romeo Observer.

All in all I did enjoy the meeting quite a bit. However, it was a little disappointing that only 7 Commissioners out of 26 attended even worse only 12 REALTORS® out of over 3500 were present, 3 of which we Ed, our son Mike and me.

Macomb County Neighborhood Stabilization Program

Ed & Cindy Knight (Realty Executives e-Group) — Tue, 24 Mar 2009 23:34:05 -0700

Yesterday, we attended a meeting giving us the details of the Neighborhood Stabilization Program(NSP) for Macomb County home buyers. This program was authorized under the Title III of the Housing and Economic Recovery Act of 2008 under President Bush. That funding has just hit the county for distribution. But it will run out quickly.

The purpose of this program is to help rid our Macomb County neighborhoods of the vacant foreclosed homes. They are not only dropping home values but creating eye sores in our neighborhoods. As expected there are income limits which you can read about on our website. This program is not just for first time buyers but you must not own another home.

Here's how it will work - Macomb County will be receiving $20.1m of which $9.8 will cover what is being called "Urban County" view map. Another $10.3m will go to Warren, Sterling Heights and Clinton Township. While another estimated $3.1m will be used for Saint Clair Shores and Roseville.

If you fall into the income guidelines, qualify for a mortgage, apply for the funds and purchase a foreclosed home at least 15% under value. Then you can receive up to 49% of the purchase price for down payment, closing costs and fix up if needed. Then you simply get a loan for the balance of the monies. The grant is a 2nd loan that has no interest and no payments and only needs to be paid back If and When you sell your home.

As I said the money will move quickly - the county figures they will be able to get about 150-200 homes out of their funding in the "Urban County" and more sales will come from the other cities listed above. HUD is giving them a deadline to spend the monies and if it is not spent it will go back to Washington. So again you need to move FAST.

Hurry - find a REALTOR® to represent you as a Buyer Agent, get pre-approved for a mortgage, then apply for the funding. Then work closely with your agent to locate a foreclosed home. You could be in by summer.

View Macomb County foreclosed homes currently for sale. If you are a first time buyer you can also use the $8000 tax credit towards your purchase.

If you need more information please do not hesistate to drop us an e-mail at nsp@edandcindyknight.com or give us a call at 586-336-1506.

Spring Forward

Ed & Cindy Knight (Realty Executives e-Group) — Sat, 07 Mar 2009 15:54:16 -0800

It's Time to Spring Forward and say Good Bye to the Michigan Snow

and Hello to Spring

.. and don't forget when you turn back your Clocks tonight to

change the batteries in your Smoke Detectors

and re-set your breakers and change your fuses