A Macomb County Michigan real estate blog.

S.S.S. (Short Sales Skinny) A new challenge for home buyers in Macomb County MI

Tue, 22 Jul 2008 05:27:46 -0500

Disclaimer 1: I don't market homes that are in a short sale position. Why not? I don't have the expertise and feel strongly that anyone who works with sellers in this situation should know what the heck they are doing!

Disclaimer 2: I haven't had a buyer make an offer on a short sale. Why not? All of the home buyers I've worked with this year have had time frames that needed to be met to be in to their new homes.

After reading much about short sales, and listening to real experiences being told by the agents who are working with these sales I have learned enough to know the following and pass along the S.S.S. to you:

A home owner puts his home on the market for less than what they owe on their mortgage (or 2 mortgages, or 3 mortgages.)

The sellers real estate agent and the seller then put together a package for the lender (and 2nd lender, and third lender if applicable) to explain the hardship that the seller is facing, the falling property values in the area and the seller also sends along all of their financial information. (Think of this as the documentation for applying for a mortgage, but with reverse intentions)

A home buyer hears about the house for sale that is priced attractively and makes an appointment with his buyers agent to view the home. Home buyer then decides to make an offer on the home. Seller accepts the offer and the purchase agreement is forwarded over to the lender (and 2nd lender, and 3rd lender, if applicable)

Home buyer and the buyers agent wait. The first week goes by and everyone is still patient because of course they've been told to expect this wait. The 2nd week goes by and still everyone is displaying patience. On to week 3 and the buyers agent has been calling the sellers agent asking if there is any news, and has the package(s) that has been submitted to the lender(s) been reviewed? The sellers agent states "Have patience". Week 4 comes around and perhaps the package has been reviewed by someone with authority to do so at the first lender. (I'll stop mentioning lender #2 and #3. You get the idea by now.)

Weeks 5-8 the lender orders a BPO. (Brokers price opinion, meaning that the lender, normally in another state, wants to make darn sure that the house is really worth what the seller, the sellers agent, the buyer and the buyers agent in this local area feel it is worth.)

The lender(s) decides one of two things: That the house is worth what the purchase offer indicates, or that the house is worth more than what is being offered for the home.

Guess what happens if they decide it is worth more? Google "short sales" and you'll have so much to read that your eyes will hurt.

Did I forget to mention the fact that some of these transactions don't allow seller paid concessions to the buyer? Did I also forget to mention that while the buyer is waiting for a response that the interest rate they were quoted upon mortgage application has probably now expired?

Purchasing a short sale can be a good thing for the patient buyer and the seller. Always ask upfront what the expected time table is, and be aware of the challenges and changes that can take place during the process.

Go in to the process with your eyes wide open. Ask your agent for their experience with them, and seriously consider a long sit-down with your agent to discuss your purchase options in this ever changing real estate market.

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Buyer agency in Michigan - What does your buyers agent bring to the table?

Mon, 21 Jul 2008 05:48:02 -0500

I can write all day about first time home buyers and repeat home buyers in my neck of the woods in Michigan (Macomb County) but I really wanted to write today about the intangibles that a buyers agent brings to you, the consumer, when purchasing a home.

When I represent you as a buyers agent I take on the responsibility to care about you and your home purchase from start to finish. You come first. It's that simple. I do not represent the sellers, their agent, the home inspector, the lender or anyone else who is a party to the transaction. I represent you.

Here are some of the things that I do to look out for you:

Keep in touch with your lender. Continually. You will always know what is going on with your financing.

"Flag areas" of interest to you. When a home comes on the market you'll be the first to know about it. Likewise, if a home has a price reduction, you will know about it.

Discover the history of the homes for sale that you are interested in. Is the home currently in foreclosure? How many price reductions has the home had? Are their currently liens on the home? Knowing as much as I can about a home you are interested in helps us tremendously in the negotiation process and in other areas.

Accompanying you: I will be there with you for your home inspection standing out of the way to allow your inspector to go over the home with you. I will also be there with you for the final walkthrough of your new home prior to closing. Do you want to go back through the home to measure wall space for furniture or windows for shades? I'll make the appointment and gladly take you through as many times as you need.

Mandatory repairs will oftentimes be needed if you are purchasing with a FHA or VA mortgage. I've been representing buyers for years and am informed about FHA guidelines. I keep an eye out for those things that I am fairly confident that FHA or VA will cite as a no-go. So many homes on the market today are bank owned and as such, you will be responsible for repairs to the homes. I will advise you throughout the process so that you are not surprised by anything that happens.

Accurate tax information: There is much online now from the various cities and township assessors offices however I go one step further to ensure that you are receiving accurate property tax information. I go to the offices of the assessor and verify the amount with them. I don't like surprises when it comes to this information and I'm sure you won't either.

Back to the city offices: If your work schedule does not permit you to visit the assessors office after closing to turn in the property transfer & homestead forms I will do that for you. You will receive a copy from me hand delivered after I have done so for your records.

This list is not all inclusive. Each person, each transaction is different. There are many more intangible ways that a buyers agent can help you and be of value to you. A good buyers agent is a partner to you throughout the home purchase process.

Interview and choose a buyers agent to work for you.

Macomb County MI homes for sale

Mt. Clemens MI - Arts & Crafts festival this Friday and Saturday

Wed, 16 Jul 2008 09:51:18 -0500

The city of Mount Clemens MI will be hosting an arts and crafts festival this coming Friday and Saturday (July 18th and 19th) in the heart of the downtown area.

The weather looks to be spectacular for this outdoor event, although bring your sunglasses and water bottles. (It should be a hot time in the city!).

In the paved area within the center square there will be a local musician, Rick Charming, performing at 11:30 on Friday . (If the name sounds familiar it's also because he has been known as Mr. Bachelor to many of you and is my oldest son.) I'll be there to listen to him and have the small cooler of water bottles for him. If you spot him, please wish him a happy day-after birthday!

Parking for the event is best off of the west side of Gratiot in many of the public parking lots. I always look forward to going to these events throughout the summer as it showcases the wonderful businesses in the heart of Mt. Clemens, as well as the many area artists.

Kris Wales - A Macomb County MI real estate agent.

Chesterfield Township MI - Muirfield Manor Subdivision

Mon, 14 Jul 2008 06:24:53 -0500

Chesterfield Township Michigans Muirfield Manor Subdivision is one of the completed subdivisions in our area that has a nice mixture of homes: Ranch style, Split-Level and Colonials.

This location in Macomb County is within the Lanse Creuse school district and also offers to a prospective home buyer a range of prices and sizes in the homes:

Since April 1st of this year 2 homes have sold within Muirfield Manor. One of them was an approximately 1600 square foot ranch that sold for $179,000. The other was a bank owned foreclosure. It was a split level design of approximately 2250 square feet on a corner lot that sold for $184,275. (The seller paid $10,725 in concessions to the buyer of the home, which I have taken into consideration with the quoted final sales price.)

I had the opportunity to view the split level home that was a foreclosure and believe the buyers of this home received an outstanding deal on this home. It generally needed some landscaping "loving" and an all around good cleaning, paint and carpeting.

Currently there are 7 homes on the market in Muirfield Manor. They range from a bank owned foreclosure that is priced at $164,900 (a 1600 square foot ranch) to a lovely 2400 square foot split level that is priced at $269,000.

Muirfield Manor in Chesterfield Township MI can be found just south off of 24 Mile Road, east of Gratiot.

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Have you been to the city - municipal headquarters in Warren MI lately?

Thu, 10 Jul 2008 07:28:10 -0500

It's been a while since I had to go to the city center in Warren MI to pick up any type of documention and I was happily surprised by the sight of children playing in what I call the splash fountain.

When the city planners and residents of Warren MI decided to build their new municipal headquarters they did a fabulous job of incorporating all of their buildings and the ease of citizens in accessing them in one area:

The municipal building in Warren MI

Free parking garage

There are also several condominium subdivisions to the eastern side of the city headquarters center in Warren, many of them the lovely townhouse style that are popular and affordable in the city of Warren.

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I never leave home without this...

Mon, 07 Jul 2008 08:50:46 -0500

I have had this as part of my buyers package for a couple of months now, and also have copies in my briefcase for those that I meet that are in the "curious about.." stages of purchasing. Please feel free to print it out to give to your buyer clients. (You may want to edit or alter it to fit your local purchasing practices). All I ask is that you don't put it in your own websites so that there isn't duplicate content running rampant to penalize us.

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PURCHASING FORECLOSURES – TIPS AND GUIDELINES

Prior to making your offer:

Always consider an offer on a bank owned home to be your “best and last” offer as many of these homes are already bargain priced. We are seeing many multiple offer situations on these homes. You may only get one chance to bid on them – make it your best offer from the start of the process.

Bank owners and/or asset managers require full proof of funds (if a cash offer) or a pre-approval for mortgage letter with any offers submitted.

They also may require a certified or cashiers check payable to the listing office prior to reviewing an offer to purchase.

Bank sellers will want to see a closing date of no more than 30 days from the date of first offer to purchase.
If you experience a delay in your mortgage approval or other reason for delaying the closing you will probably be charged a fee for each day that the closing is postponed. The bank / asset manager may also withdraw the contract and put the home back on the market.

After your offer is submitted:

Offers on bank owned homes generally take 3-7 business days to receive a response back from the lender and/or asset manager. A signed acceptance of your offer may take an additional 3-7 business days.

Bank addendums & terms to the contract of sale must be agreed to by the purchaser and signed. (There are a few exceptions to this, for the most part their terms are inflexible.)

Home inspections

If the utilities are not on in the home they will have to be turned on in your name if you desire to have a full inspection on the home. (A full inspection is always recommended.)

Consider your offer to purchase with “As-Is” in mind. Banks/asset managers will normally not make any repairs to the homes.

Inspection contingencies are normally 5-7 days from the date of sellers acceptance. (Rarely do they allow more time.) You must be ready to proceed with a home inspection quickly in order to meet the deadline.

Closing on your home:

Closing date, time and location are set by the title company hired by the bank owners. We have very little flexibility, if any, in choosing a time that is preferable by the purchaser.

Many bank owned homes close in “escrow”. We will arrive at closing, sign all necessary documents and if the bank signed documents have arrived to the title company and funds have been exchanged, then you will receive your keys to the home.

If the bank signed documents have not arrived in time for the closing, you will receive your keys to the home and your closing documents at a later date. Most often this is within 1-3 business days of closing.

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Practicing law without a license

Mon, 30 Jun 2008 13:56:44 -0500

The phone call usually starts out like this:

"I was given your name by Mrs. Brown. She said you helped her with her home purchase. I have a problem and I'm hoping you can help me..."

It sounds innocent enough doesn't it? After all, I'm a licensed real estate agent in the state of Michigan, and that's what I'm here for isn't it?

"I have an offer in on a home that's for sale by owner, and I'm not sure what to do now as far as xxxx..."

Fill in the blank of xxxx and this is where it gets tricky for me. Perhaps tricky isn't the word I should use as it is all very clear for me what I can do and cannot do.

In the state of Michigan if I am not a party to the transaction I cannot give you advice as to what you should or shouldn't do. Attorneys here take exception to that as they are licensed to practice law and I am not. I won't even take the first step towards that slippery slope.

As always, I am grateful whenever a former client remembers me and thinks highly enough of my expertise to pass along my name and phone number. I always enjoy hearing from others who are contacting me after speaking with someone who has used my services in the past. However (and this is a big however) I cannot look at your contract and give you advice as to how you should proceed or what you should do about xxxx.

Only an attorney can give you legal advice, even if the advice is in regards to a legal issue within a real estate contract. If I am not sure as to whether your question is a legal matter I will still proceed on the side of caution and assume it is.

I cannot and will not risk losing my real estate license because I gave you legal advice that I had no business giving to you.

If you wish for me to give you the name and phone number of an attorney who is familiar with real estate issues in Macomb County I will be happy to do so.

© 2008 Kris Wales a Macomb County MI real estate agent

Do businesses and industries shoot themselves in the foot with sudden changes?

Thu, 26 Jun 2008 06:43:24 -0500

My hubby called this morning after he got into work and was really
frustrated.

He stopped to fill up his gas tank at his usual gas station and was greetedwith the following upon swiping his bank card: "Please enter zip code." Not a problem. He entered it. Then he was prompted to "see cashier".

He thought there was a problem with his swipe-stripe and went into the
gas station only to find 10 other customers waiting in line. From the conversations overheard he was able to understand this much:

The gas station now prefers everyone to pay by cash. If you are going to pay by bank card or credit card you have to come inside to show your card and have the signature verified by the attendant.

He drove on down the highway and stopped at another gas station. Believe it or not he was greeted with the same prompting, and the same "Come inside..." and yet the same line full of customers all rushing to get to their workplaces.

Once again he left. The most frustrating part of the sudden change in the "pay at pump" routine? There was no advance notice of it, nor were there any signs on the pumps or at the door of the stations notifying customers what the new policy was. Because of this there were many unhappy customers at 2 separate businesses this morning. Many people who were there at the same time were just as frustrated and left, without giving their business to these gas stations.

I was wondering about something after I got off the phone with him this morning. In our real estate industry we have seen many sudden changes, ones that have inconvenienced consumers in many ways. From the mortgage changes to appraisal guideline changes the list could go on and on.

Will the 2 businesses that my husband visited, then left, recover from the bad experiences that so many consumers had with them this morning?

Will the sudden changes in our industry leave a bad taste in the mouth of consumers that could take years to change?

You never know what you'll catch on video - (one of the most hysterical things I've seen yet on U-Tube)

Thu, 26 Jun 2008 04:04:04 -0500

During last nights Detroit Tigers game vs the St. Louis Cardinals there was a rain delay.
A lengthy rain delay. A 2+ hour rain delay.

I've often heard it said that little boys grow up to be big boys and you really can't take the
kid out of grown men. One of my favorite Tigers players proved that last night and entertained
the die hard fans that waited it out.

Todd Jones, the amazing closer for the Detroit Tigers, aka The Rollercoaster has always been
known for his wit and his grace and fun loving heart.

While the tarp was on the field Todd decided to have a little fun. He donned a Magglio
Ordonez wig and jersey and took the field reenacting Magglios famous home run that clinched
the 2006 ALCS game.

Watch for yourself. I guarantee you'll laugh as much as I did, especially if you watched the
original home run in 2006 or have seen its replays. (Watch it til the end and see how much
fun his teammates were having on the bench while this was going on, and how many players
had video cameras going recording the scene.)

Todd Jones impersonating Magglio Ordonez and his 2006 ALCS championship walk off home
run.

I bet those in the stands and the players that were recording were glad they invested in
a video camera!

The old dinosaur ways are going, going, gone - Helping each other benefits everyone.

Tue, 24 Jun 2008 16:58:19 -0500

I remember when I first started in my career that very few people
went out of their way to help a new agent, let along share any
words of wisdom to help you with your business. Oh, they surely
came around to point out what you were doing wrong, but everyone
guarded their wisdom as if someone was reaching inside of their
pocket for their wallets.

Today I was pleasantly reminded once again that the "old dinosaur" ways of practicing our business is falling by the wayside and I am grateful for that.

Missy Caulk from Ann Arbor drove quite a distance today to teach a class of eager students agents about web marketing, blogging and building your business with Web 1.0 and 2.0. (I do believe she had a standing room only audience as I spotted quite a few who made it late and were standing on the sidelines taking in every word she said.)

Can you remember back 10 years ago? Anyone who ever came to hold a class or a seminar you had to pay, or there was a cost at the end of the seminar if you wished more information. Worse yet, agents in your own office guarded what they were doing, how they were doing it, and you were left on your own to figure your way around this ever changing business.

Today we are so blessed. We have this forum, ActiveRain, and other social networks in which professionals from all over the globe freely and unselfishly share their experiences and knowledge.

This afternoon Missy Caulk went out of her way to do just this. She brought her knowledge and expertise and freely shared with a room of eager and energetic real estate agents.

I was blessed to meet her today (finally!), and I know everyone she came in contact today feels the same way.

Missy, I hope the drive back was pleasant (as it can be, with Michigans 5th season). Thank you for your time, your caring, and most of all for being a part of throwing away the old-dinosaur ways of doing business. It's people like you and those here who are a big part of why this business is so gratifying to me.

P.S. Scroll over the picture for the tag :-)

Let's be careful about what we write - and read.

Tue, 24 Jun 2008 05:21:35 -0500

We wouldn't write about interest rates dropping when they weren't. We also wouldn't write about a home being offered for $50,000 when the real asking price is $100,000. Why in the world am I seeing
articles misreporting facts about something so important as HUD guidelines?

Last week it was announced by several
news organizations that HUD has waived
its 90 day "anti-flipping" rule. (This rule was put into place in 2003 to guard against predatory house flipping and worked well in my opinion.)

What wasn't readily reported were the details of this new waiver.

Because we sometimes see only the exciting headlines and don't follow through to get to the heart of an article we miss the truth in what the little that we do read.

Worse than that, we then report what we read without checking into the facts.

Before you head out there with home buyers and tell them not to worry anymore, that yes you can purchase a home that has been owned for less than 90 days please read the details.

As real estate agents and others in this profession we have a responsibility to get our facts straight. I read one of the first articles on this waiver, and sent an email off to one of my trusted and valued mortgage professionals, Mike Caira of Great Lakes Mortgage Funding in Shelby Township. He in turn got on the phone with an underwriter to get their interpretation of this reported piece of legislation. By the end of the day I had my answer: Yes, parts of the 90 day anti-flipping rule is waived. But not all of it.

I'm going to sound like the watch commander on Hill Street Blues, but please, let's be careful out there.

Talk to your trusted resources, get all of the facts, then go out and help your buyer and seller clients. I'm sure
you don't want to be the professional who gives incomplete advice to your clients simply because you took as
factual tidbits of an article you read.

© 2008 Kris Wales a Macomb County MI real estate agent

Empathy is real and has its place in our daily lives.

Mon, 23 Jun 2008 05:35:47 -0500

Yesterday I wrote about something that left me pretty darned emotional while viewing
a foreclosed upon home. It was hard to write, but I felt that without a doubt that it
needed to be shared. The situation put a human side to a heartbreaking everyday
occurance in our state, and in many others across the nation.

Did what I write touch others? Obviously so, judging from the responses. Will it help
or hurt the subject that I wrote about? I honestly don't know. One thing I do know though
is this: Empathy does have a place in what we do, how we live, and how we view life and
humanity.

Someone in the peanut crowd sent me an email telling me that what I wrote was inappropriate.
Their message to me? We as real estate agents should always show a positive face and not
let the emotional human beings in us come forth.

I vehemently disagree. I am a human being first and foremost. I live my life in a positive
manner, and tend to try to find the good in everyone and the glass-half-full in most situations.
There are times though when life hurts, and when I witness it I hurt. Do I always share it? No.
Most times I tuck it deep inside of me and it becomes a learning experience that I don't forget.

I looked up the definition of the word empathy just a bit ago. Wikipedia states it so clearly
and hauntingly appropriately: It is often characterized as the ability to "put oneself into
anothers shoes".

Can I empathize with the homeowner who lost their beloved home due to a job loss?
Oh yes. Do I empathize with a fellow real estate agent who is struggling to make ends
meet? Most certainly. Will I empathize with the small business owner in our state who
doesn't know if he will be open in the next couple of months? Yes, I will.

Should I write about these very real human emotions? I don't know if I should, but I will.

Dear former homeowner - Your letter is still there, on the kitchen counter.

Sun, 22 Jun 2008 13:25:35 -0500

Dear former homeowner,

It is quite possible you won't ever find this and read this but I had to try.

Today I brought potential buyers in to view the home that you once owned and unfortunately lost through foreclosure.

When we first entered the home we were amazed at how well maintained it appeared to be, and were delighted by the fact that it wasn't a "typical" foreclosure home that we had been used to seeing.

Upon entering the kitchen we saw a piece of paper on the counter that
was hand written. I knew it wasn't something from the bank owner, or
property manager. As I drew closer to it and picked it up I felt chills
going through me. It was your letter, the one you wrote and probably
thought would be removed.

In the letter you described so hauntingly what happened to you and your family and how you lost your home that you obviously loved and cared for. I'm not ashamed to admit that I became emotional while reading it and couldn't finish it. You see, your story is not unlike many others in Michigan. The whole state is in an economic crisis and many families have lost their livelihoods and homes. The reality of that hits us smack in the face each and every day and it hurts. It's hard to see this and not become emotional.

I can only imagine how hard it was for you to write it, I feel I owe it to you to go back to the home and finish
reading your letter.

The potential buyers that I brought through your home also read part of it. They couldn't finish it either.
It saddened them to read your words, especially after seeing how well you took care of your home and obviously took pride in it.

I don't know what else to say. I'm at a loss for words but wanted you to know I'm grateful that you
weren't. Your words are still there on that piece of paper on the kitchen counter. There have been many people through the home over the last several months and no one has removed the letter. Your words also wishing the new owners happiness also will be read and cherished by whomever purchases the home.

I pray that wherever you are and whatever you are now doing you will find prosperity and peace for you
and your loved ones.

Sincerely,

Kris Wales

Photo courtesy of Laineys Repertroire hosted at Flickr

Could we hit a stone wall with our words and not be aware of it?

Sat, 21 Jun 2008 06:57:07 -0500

I had one of the most interesting conversations with a potential buyer client yesterday afternoon and it didn't
involve his wish list or want list for a new home. At the end of the conversation I asked him for his permission
to write about our talk and as he found me via my blog posts he agreed.

The young man I spoke with has been interviewing agents online for several months without the
agents being aware of it. His interviewing has involved reading as much as he can on various agents websites, and recently he found ActiveRain. One thing that he said made me stop in my tracks and nod
my head in agreement as I've had the same gut feeling when I am in his shoes as a consumer: Don't tell
me you're honest, hardworking or trustworthy.

In his words: "If I read from someone that they are honest or they're hardworking or trust me I've just put a stone wall in front of them. I'll walk around the wall and read someone else. I won't take the time to walk through the wall."

I asked him why those words put him off, anticipating the answer because I've felt the same gut
churning when someone has said those words to me.

His short and sweet reply? Prove it, don't say it.

I wonder how many of us in trying to convey our value to consumers and peers have used those words and phrases in our marketing not knowing that we were building an imaginary stone wall in front of us? A wall that the consumer won't walk through but rather walk leisurely around?

Mr Caller: I look forward to talking to you again. You gave me one of those eye opening moments that only someone on the outside of our profession can and I am grateful for it. Perhaps next time we talk we'll get around to talking about your real estate needs. I would be honored to prove myself to you.

© 2008 Kris Wales a Macomb County real estate agent

Photo courtesy of Fractal Artists photos on Flickr

A fabulous new trend: Home buyers saying "NO"

Fri, 20 Jun 2008 05:29:01 -0500

“No, I don’t want that payment” - Home buyers in Michigan are smarter this year. Much smarter, and I'm thrilled to witness it.

I represent many home buyers in my real estate business. I enjoy them, and I am happy as can be finding and showing homes to potential buyers. The interaction between a buyer client and a buyers agent is fun, hectic at times and precious to me. Most days you can find me driving all around Macomb County and the Metro Detroit area viewing homes, taking photos and meeting with buyer clients.

This year I’ve noticed a trend that I am thrilled with: Buyers
are becoming smarter when it comes to their purchase power
and are saying “No, I don’t want that” when it comes to the
mortgage payments quoted in their pre-approval letters. Gone are the days of stretching the mortgage amount to the limit. (The photo on the left aptly describes what used to take place.)

Without exception, each and every home buyer that I’ve encountered this year has purchased a home thousands of dollars under what they are approved for.

Unlike previous years, buyers are considering all factors of their economic situations and realizing that job security isn’t guaranteed to any of us. Many married home buyers are purchasing homes based upon one income only. Gone are the days of using both spouses incomes into the equation when considering how much to finance for a home. If there has been any good to come out of this mortgage mess and depreciation in home values across our state it has been this trend.

Kudos to all the home buyers out there who are being smart and planning their budgets well in advance of their home purchase. Saying NO firmly to an unrealistic mortgage payment and purchasing a home based upon what is comfortably affordable is a trend I hope will continue.

©2008 Kris Wales a Macomb County MI real estate agent - A partner for your real estate needs.

Search for homes using MLS provided data Contact Kris Wales RE/MAX Advantage 1, Inc.

Photo courtesy of Mike Licht NotionsCapital.com via Flickr

A bit aggravated with a news report today quoting Henry Silverman.

Wed, 18 Jun 2008 09:01:40 -0500

This morning the Detroit News had an article quoting Henry Silverman stating that
home prices will continue to fall across the nation.

What irked me is the statement reported in the news article that if a home buyer signs
a contract to purchase now that they will close in September.

In what part of the country does it take over 2 months to bring a transaction to closing?
(I'm not talking about short sales here. That's a different type of home purchase
entirely.)

In the Metro Detroit area a home buyer paying cash can close in 2 weeks. For someone
utilizing a conventional mortgage to pay for their home purchase that closing typically
takes place within 30 days. For most FHA or VA purchases I like to put 5 weeks into
my home buyer clients contracts.

I have been in this business for 11+ years and I have never ever had a home purchase take
over 2 months to close.

The aggravating part of this? I wouldn't want any one of my buyers, or yours, to pick
up this mornings paper and read that article and believe that it would take them over
2 months to get to the closing table and own their new home.

As if we don't have enough misinformation in our industry to combat, now we have
one more bit of it to add to our education of our local consumers.

This is why I continue on - Looking back on a week of touching experiences.

Mon, 16 Jun 2008 05:45:44 -0500

To say this past week was hectic and fulfilling would be an understatement.
It's also been a week of highlights that have touched me and made me stop and think again "I can't imagine doing anything else."

On Wednesday a wonderful young lady purchased her first home, a condo in an area that she had been familiar with her whole life. After many ups and downs through the purchase (appraisal issues, etc) we both found ourselves in Birmingham at the closing table with a sigh of relief. The joy on Stephanies face made me pause and take it all in. After 11 years it isn't routine. It's all a joy and she reminded me of that.

Stephanie also brought tears to my eyes when she gifted me with a beautiful scented candle to thank me. Without going into too much detail, I met Stephanie over 3 years ago when she first started looking for a condo. The timing wasn't right then, but we kept in touch and I valued our talks over the years. She truly is a charming and fun young lady and a pleasure to be around.

Stephanie is one of those buyers that becomes more: A dear friend and I hope to be a part of her life for years to come.

Thursday came and I was anxious because a closing on a foreclosure was supposed to take place the following day. As it took 15 days for a signed deed to come back from the bank/seller I wasn't at all assured that the other signed documents would arrive for our Friday closing. I cautioned my very patient buyer that we probably wouldn't have what we needed after we closed, and to not expect to receive keys until today, or tomorrow at the earliest.

My buyer, Charlene, has the patience of a saint. We have been working on finding her a home since November. Oh, we found many. She put in 11 offers total over the months (all of them foreclosures in Macomb County) until finally all the pieces fell together in the right order. What is truly rewarding about this purchase is the fact that it is the best home of all of them and at an awesome price.

On Friday Charlene came to my office early and we drove out to the home for a final walkthrough before stopping to have lunch together before the closing. During lunch Charlene gave me another one of those teary eyed moments when she gifted me with something that every real estate agent can use and appreciate: A TomTom navigation system. To say I was speechless is an understatement. She also hit the heart strings with another gift, one for my youngest son: His first baby gift. (My youngest son found out last week he is going to be a father. We are happy beyond words.)

As the closing was in Farmington Hills I re-routed us around major freeways (avoiding Michigans fifth season - construction) and we arrived in plenty of time. While we sat in the waiting room we couldn't help but notice how busy the title company was. That made me feel good about the real estate market in Metro Detroit. It was late in the day and the place was hopping with people buying homes!

Just as predicted the signed closing documents didn't arrive for our closing, so we closed in escrow. On our way back however I received a phone call from our title company representative at 5:10. The documents were in, and the keys could be released to Charlene. If I wasn't driving I would have done a happy dance. I think Charlene did in the seat next to me. Once again, that joy in a buyers face was touching to behold.

I can't wait to stop by the house and see what Charlene and her family have done to it. I know it will be a home soon and not simply a house.

Over the last 2 years I've been asked many times why I continue in my chosen profession. I think I'll print out this blog post and keep it with me. It would be a great hand-out response to those questions.

It's the people. It's the joy. It's the fulfillment that comes with seeing it through to the end - to the happy conclusions.

Sellers remorse is unfortunately alive and well in Michigan

Tue, 10 Jun 2008 05:34:05 -0500

Sellers remorse.

It happens. Lately, I have heard of it happening more often in Macomb County MI.

Recently buyer clients of mine put an offer in on a home in our area. The home had been on the market for well over 6 months, and saw various price changes. What the home sellers did, in my opinion, was to “chase the market downward.” (That is another post entirely!) Instead of pricing their home to sell in this market they kept lowering it slowly, but never lowered it far enough to keep up with the declining market values.

Yes the home was well kept. Yes the sellers updated the home. Yes they put quite a bit of hard earned money into the home. That didn’t change the sad fact that the home was overpriced for the current real estate market.

My buyer clients made a very fair offer based upon location, condition, and current estimated market value. The offer wasn’t rejected, but it was counter offered to nearly full asking price.

The savvy buyers decided to look for another home. With thousands of homes on the market right now in our area of Michigan, they didn’t have to wait too long to find another home that not only met their needs and desires, but was also priced appropriately.

The other day the agent representing the sellers called me. He asked if my buyers were still interested in the home or if they had found another. I have a feeling that the sellers of that home were sorry that they didn't negotiate in a more realistic manner and are now back to square one.

Sellers remorse? It happens. The first home is still for sale, and yes, at the same price.

© 2008 Kris Wales a Macomb County MI real estate agent.

Want to read more about Macomb County MI?

What's been happening with Chesterfield Township MI real estate?

Mon, 09 Jun 2008 07:47:25 -0500

It certainly has been a busy spring in our fine area of Macomb County MI. During the month
of May twenty two homes sold, and 5 homes were rented.

Sales prices ranged from $95,750 for a home on Forbes that sold, to $207,900 for the
home on Leopard that recently found new owners. What I found most striking is that the
list - sell price ratio was 98%. Home sellers in Chesterfield Township MI are pricing their
homes to sell and the buyers are realizing this trend.

Many of the homes that sold were to buyers utilizing FHA mortgages with the home sellers
helping with the purchasers closing costs, tax prorations and pre-paid items.

As of this morning, there are currently 32 homes for sale in Chesterfield Township that
are value-friendly priced between $100,000 and $150,000.

If you would like to view any of these homes please don't hesitate to call me and I'll be
happy to make the necessary appointments.

Kris Wales - Chesterfield Township MI 586-840-1876 direct line

A Macomb County MI real estate agent

All information on homes sold and homes for sale provided courtesy of Mirealsource™
and its participating brokers and real estate agents.

The Flip-side to Feedback - Or - This is why I balk at giving it..

Sun, 08 Jun 2008 11:28:48 -0500

I've moaned about giving feedback to a homeowners agent after I have viewed homes
with buyer clients. My main concern is staying loyal to my buyers and unless I know for
a fact that a particular home is off their list I will not say anything that could compromise
their negotiating power.

Friday I showed homes to a buyer client. Many homes. All of the homes were in Macomb
County MI. 2 of the homes are definately not in the running for my buyer, and I had his
permission to give feedback if it was requested by the sellers agent.

Naturally both agents called and asked for feedback. I was gentle, but I was honest.

Home #1: Couldn't see out of the living room and dining room windows because of
overgrown shrubbery. (I can't type shrubbery without thinking of Monty Python..) It also
desperately needed updating in the rooms that mattered: kitchen and bath.

Home #2: Kitchen and dining area floor tilted to the left. Considerably. No question
about it. Foundation problem? Floor joist problem? Of course without an inspector
we wouldn't know for sure, but my client nixed it from the list because of that. (Sinking
floors leave a bad first impression Mr. Seller, just in case your agent didn't mention that
to you.)

Below are the responses that I received when giving honest feedback to the agents:

Agent #1: Trim the shrubs/trees/vines and he'd have a great home! Forget about the
kitchen and bath, they can be updated for a couple of thousand. Is that all that is
keeping your client from buying it? (Hmmm..that and the price tag for this home that
needs updating...)

Agent #2: Are you kidding me? The floor has always tilted downwards , my sellers
have never had a problem and it doesn't bother them! What am I supposed to tell
them about this? (The truth. The whole truth. And nothing but the truth.)

Agents: If you ask for feedback and I have permission to give it to you, please don't
get upset with me when you hear it. Share what you wish with your clients. Tell them
the truth, or not, they are your clients not mine. How you handle your business is
your business. After all, you're the person that your seller will be coming to and asking
"Why isn't my home selling?"

I'll let the pictures tell the story - a sad foreclosure in Macomb County MI

Fri, 06 Jun 2008 06:01:21 -0500

I've written a few articles about the foreclosures here in Macomb County MI and how I feel the
banks/asset managers/whomever-owns-them can help to get these homes sold and save neighborhoods.

One of the articles I wrote laid out a simple plan, so simple that I know it won't be taken seriously by the owners of these homes. Last week while previewing a home for an investor client I took the following pictures. I'll let the photos tell the story.

The water main area in a basement of a
home that has been on the market for
quite some time.

Gee? I wonder how many mortgage programs
are available for someone who would want to purchase this home?

I should add, this home is priced considerably under
market value for the neighborhood. I wonder why?

A nice close up of the drywalled finished basement.

One would think that the foundation of this home
would be suspect. (If one didn't stop to think about
the affects of a home lacking heat during the
winter months.)

This is the side of the otherwise lovely brick
home in Macomb County MI.

As I stood outside I didn't notice anything wrong
with the foundation. No bowing, no drainage issues,
no cracking. (I am not a structural engineer so please
take my opinions for what they are - a casual observers opinions).

The downspout could use an extender - but that is all
that I could find wrong with the exterior of this home.

As I said, I'm not a structural engineer. I'm not a plumber, or an electrician or a clairvoyant.

My humble opinion? The moldy mildewy basement could have been avoided if the home had the heat at a minimal level during the winter. The main water intake into the home wouldn't have burst and there wouldn't have been water damage in the home.

I bet the neighbors will be thrilled when this home sells for 50% or so of the market value in the area.

Anyone else in Hockeytown sleepy this morning?

Thu, 05 Jun 2008 05:49:53 -0500

Welcome home Lord Stanley!

Congratulations to Mr. and Mrs. Ilitich and the hardworking "a salary cap won't stop us!"
Detroit Red Wings players and organization.

Earning my fictional Masters Degree in Real Estate

Mon, 02 Jun 2008 06:03:11 -0500

Over the past year or so I've commented often that I feel as if
I am earning the equivalance of a Masters Degree in Real Estate. Just like most of the areas of our country, Macomb County MI has
undergone massive changes in not only the housing market but the mortgage industry. Challenging for real estate professionals? You betcha! Exciting? Always. Frustrating? At times, yes.

I started thinking about the classes in my mind that I have taken towards my fictional Masters Degree and came up with the following list.

===========================================================================

Home Sellers 101 – 110: It used to be that the home sellers could be
easily identified. They were the ones that opened the door for you and
your buyer clients. Now, 11 years later, many home sellers are banks
(foreclosures), investors (flippers), and owner occupants along with their
lenders (short sales – sometimes known as pre-foreclosures.)

Inspections 205: Not only have home sellers changed over the years,
but home inspections have also. Along with my usual rants about having
to co-ordinate utilities being turned back on, there is also the added joy
of realizing that once the utilities are back on and the mechanical systems
are functioning that there will be much more items needing to be repaired
by the home buyer. Notice I said “home buyer”. If the home is bank owned
typically the banks tell you “As is” in 185 different addendums and
disclosures that you will sign. Which brings me to…

Contracts 400-785: Why so many classes in contracts? Because there are
more contracts. Many more of them. With each home and each real estate
agency I am seeing (and reading) more contracts in the last year than at any
other time. One that continually gives me nightmares when I think about it is
VA’s purchase agreement on it’s foreclosed upon homes. I think in my next life
I want to be a contract writer. Or an attorney.

Mortgages 110-380: This is a class that I am taking weekly and sometimes
daily. Years ago when I first started my career as a real estate agent there
were 3 basic mortgage programs: Conventional, FHA and VA. Each of them
were pretty standard: XXXX amount for a down payment, have the buyers
provide basic background and you were off and running. Now we’re running
and we still aren’t sure where we’re going to reach the finish line.
My trusted loan representatives are on speed dial.

Appraisals 110 to infinity: I’m not an appraiser. I wouldn’t want to be an
appraiser. However that hasn’t stopped me from learning as much as I can about
this field to try and successfully negotiate for my buyer clients a fair price for
the home they want to purchase AND not have them waste their time and money
on a home I know doesn’t stand a prayer to get out of an appraisal review with
an “a-ok” status. I hate to say “I told you so” but I told you so. Many times.
One of the most important (and overlooked) keys to a successful home sale by
a home owner is pricing it correctly so that an appraisal doesn’t throw on the
emergency brakes in the midst of a transaction.

I’m sure there are more classes that I’ll need to complete my Masters Degree
in Real Estate and I’ll get to them when I can. For now, my plate is full keeping
up with this exciting and changing career and staying one step ahead of the
changes so that I can protect my clients.

© 2008 Kris Wales a Macomb County MI real estate agent.

http://macombhomes.com http://chataboutmacomb.com

A foreclosure success story - finally one to rave about instead of ranting.

Fri, 30 May 2008 05:55:55 -0500

I haven't been shy about stating my opinion when I feel the asset managers of foreclosures in Macomb County Michigan are dropping the ball and shirking their responsibility to neighborhoods. This morning however I would like to give a big THANK YOU to all of those involved with the care of one particular home.

Many home buyers in the Metro Detroit area are not only viewing the foreclosed upon homes that are for sale, but they are making offers to purchase them. Most of what we have been seeing however are homes that are clearly distressed and in need of more tender loving care than owner occupied homes. I've ranted about the lack of basic maintenance, the common practice of not turning on the utilities to prevent problems, and the deterioration of neighborhood property values when lenders and asset managers don't take care of the homes in the most simplest of manner.

This lovely neighborhood in Sterling Heights is home to many hard working
people who take care of their homes, support their schools and look out for
each other.

Recently a bank owned home came on the market. My buyer client and I viewed it within a few days of its appearance and one of our first reactions was "What a lovely street!" All of the homes had what we like to term curb appeal. The bank owned home also appeared to not stand out like a sore thumb and that gave us hope for the interior. A couple of neighbors were outside when we got out of the car, and gave a friendly wave. What a simple thing to do - a friendly wave spoke highly of the neighborhood and
let us know that the neighbors were keeping an eye on the happenings
around the home.

Upon viewing the inside of the home we were even more excited when we realized that the electricity was on and we didn't have to use our flashlights. Another plus.

The home was everything my buyer client had been looking for and she wrote a strong offer for the home. As with all foreclosure purchases we both knew that patience would be the key, and this was no exception. It did take several days for a response from the seller, and 15 more days after that to receive signed documents, but this home was well worth the patience. There was also a rush to get the gas turned on in the home for the inspection, but again, it was well worth the time invested.

Yesterday I drove back out to the home to take the final water reading and marveled once again at what a pretty neighborhood it was, and how well the property manager was taking care of the home. (Grass had been cut and the electricity was still on.) There was a mother and her child walking down the street and they waved, the little girl pausing to watch me take photos. The mother smiled and said she was thankful that the home would have a new owner and they looked forward to meeting them.

Sometime before June 15th this home will have a new owner. I'm sure one of the first thing she'll do is brighten up the exterior of the home to give it more curb appeal for the neighbors and herself.

The friendly neighbors will in turn have a wonderful addition to their family and I'm sure make her feel welcome.

The asset manager and bank owner of this home will have one more Macomb County home that they don't have to worry about and will receive a fair price for the home.

The city of Sterling Heights will have a new resident, and a new taxpayer.

A big THANK YOU to all who were involved in the care of this home, the marketing of this home, and the purchase of this home. Everyone did a super job for this neighborhood and the community!

© Kris Wales 2008 http://macombhomes.com

The BEST con-ed class I've ever attended and it was 304 miles round trip!

Thu, 29 May 2008 04:29:44 -0500

A few weeks ago our Lola Audu and Gwyn Besner announced that they
were hosting joint continuing education classes here in Michigan.

Lola, after much hard work and persistance, had received approval from the state of
Michigan for her Blogging and Web 2.0 for real estate professionals continual education
classes.

Gwyn would be teaching the Code of Ethics class that would give professionals both of
the required 2 hour legal updates credit and the NAR required 2nd cycle of Quadrennial
training class.

When I read about their combined classes I knew I had to make the effort to be there
for many personal reasons:

    Typically, the required con-ed classes are not enriching, and I want the time I spend
    in a class to be educational and memorable.

    No one on our side of the state is talking about blogging, let alone being
    persistant and caring enough to push the state to see the importance of education
    in this growing field of communicating with the public.

    I wanted to meet a lady that I have admired and considered a mentor (though she
    didn't know it) from the moment that I first read her words.

Yesterday morning I was full of excitement: I would finally meet Lola in person AND
I was going to attend continuing education classes that I knew instinctively would be
classes that I would remember. I left my home at 4:30 in the morning and made
the drive to Grand Rapids MI arriving in plenty of time for registration. Lola greeted
me with a hug, a cheerful smile and a warm welcome. I truly felt as if I was seeing an
old friend.

The first of the 2 classes that Lola instructed kept me entranced. Not only is Lola a
fabulous public speaker, but the material that she put together for the Blogging and
Web 2.0 for Real Estate Professionals were right on the mark and what I had expected.

The second of Lolas classes was more in depth and also very well written and full of
information for not only the beginning blogger but also for those who have been blogging
for a bit.

Gwyns class was equally interesting and full of energy. This was the first time I had
attending one of her classes as well, and I was not disappointed. She has a way of
keeping you on your toes and engaged in the teaching and gets all of her points
across very thoroughly.

For those of you in Michigan who have not fulfilled your continuing education requirements
as of yet I highly recommend taking the extra time to attend one of Lolas and Gwyns
classes. Too often the classes that we attend are an old repeat of previous classes
with just a bit of newness thrown in to meet state requirements and don't hold our interest.
This was not the case with Lola and Gwyn and their classes.

Not only are they teachers but they cover very relevant material.

I thought about the classes the entire trip home. That hadn't happened after any of my
previous classes. How many of you can say the same after attending what is mandatory
training in our profession?

Below is the contact information for Lola and Gwyn. Please call them if you are interested
in attending one or more of their classes this year. You won't be disappointed.

Lola Audu 3659 Alpine Ave. NW
Suite 102
Comstock Park MI 49321
(616) 791-0511

Gwyn Besner of the Acme Institute
(800) 799-0483