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Proof that home buyers in Macomb County MI want to purchase non-bank owned homes

All of the talk in recent months (and media reports) have targeted the bank owned homes. Because of the media attention given to the rise in foreclosure sales in our area, many private home owners have felt defeated before they have even started to sell their homes.

I believe in being realistic with my home sellers. They deserve to hear the truth and see the statistics in order to make a timely educated decision about our real estate market. However, they also need to see the good along with the not-so-good news.

While taking a look at our December home sales in Macomb County MI via Mirealsource™ I found something interesting:

A greater percentage of non-foreclosure homes sold last month than in the previous month.

Home sales in Macomb County MI	November 2008	December 2008
Total of homes sold	599	543
Non-bank owned homes sold	210	208
% of homes sold that were not foreclosures	35.05%	38.3%

Why don't we all take a good hard look at our data and give our seller clients the good news:

Those that have priced their homes competitively do sell. It may take longer than it did 2-3 years ago, but privately homes in our area are selling.

~Kris Wales~ A Macomb County MI real estate agent

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Posted by Kris Wales - Macomb County MI real estate blog & homes for sale search site on 01/13/2009 05:30 AM

Comments (19)

macomb county homes sold, macomb county mi foreclosures, macomb county mi home buyers, macomb county mi real estate

This post has been included in Michigan Information Macomb County, MI Information
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19 Comments on Proof that home buyers in Macomb County MI want to purchase non-bank owned homes

JAN

Hi Kris,
The media is always looking for the sensational as you well know. The non-foreclosures are not as exciting and do not have the "scare" factor which it seems to me media is always promoting.

Hi Kris - I think the buyers out there think the only deals to be had are on bank-owned properties, but those most often don't turn out to be 'true' deals when they have to do that work needed. Realistic sellers these days are pricing their properties to sell, and I tell buyers I work with that many times those properties can be much better buys than most of the bank-owned homes that are typically wrought with problems, and usually more than meets the eye, too.

We should all do a little more go get this word out!
Ann
ps - saw your tweet & came on over.

But Kris. The greater percentage of homes sold was still bank owned.

A 1% drop in the number of bank owned homes sold doesn't change the fact that 62% of home sold were bank owned.

Unless I'm completely misreading the numbers, foreclosures are still a significant part of the market in Macomb County.

Cynthia:   The foreclosures are still selling and they do have a greater market presence, but they are not the only homes selling.   I wish one of our local papers would write an article or two about the privately owned homes that have sold. People need to hear that also.

Ann:   (I forgot about the tweets!) I'm running into more and more buyers that are darned tired of seeing cold, boarded up, dirty homes that are typical of the foreclosures here. They want to view homes that are well kept and priced well. Sounds like you are seeing (and hearing) the same things. Thanks for coming by Ann.

Lenn: Yes, the greater percentage of homes sold were bank owned. And no, a 1% drop in bank owned homes sold doesn't change the fact that the predominant number of homes sold are foreclosures. What I am trying to convey is this:   Privately owned homes ARE selling in our area. Home owners should not feel defeated before they've had a chance to even have their homes marketed. Being realistic with them (as I stated in the post) is always top on my list, but I will not tell them that "only foreclosures are selling".    That simply is not the case. There are homes selling (consistently - I didn't post the previous months data but I will) that are not bank owned. It's important to me that people know this. Edit:    That's what I get for not re-reading my post 3 times instead of twice. I changed the wording above the table to reflect that the percentage of non-foreclosure sales did go up from November to December (instead of "more homes sold last month than in the previous month that were non-foreclosures") I can now understand where the confusion came into play and I apologize for not wording that correctly Lenn.

Kris,

Price, location, condition still hold true, with more emphasis put on price in this market. Around here I think its a plus when I see "not a foreclosure or short sale" in the remarks section of the MLS.

Rich

Richard: Ditto- when I see in the remarks that it is privately owned and not a distress sale I am very excited for my buyer clients. Also, if it comes into my radar that means it is priced competitively and that's the key to getting a home sold in my market as I'm sure it is in yours.

I think you are really educating your sellers. Facts are facts. It is obvious in your area foreclosure homes are huge competition!

That is a great way to show the positive! I expect nothing else but that fom you! :-)

your friend in Charlottesville!

follow me on Twitter!

Dorie: Heck yes the foreclosures are the competition, but in my opinion they shouldn't be the only story told. Consumers should hear it all and not just the negative. They're smart enough to make an educated decision about what is right for them if they have all the facts, not just partial facts.

Charles: The negative does need to be told, and I didn't think I sugar coated it. However, home owners shouldn't be terrified of selling their homes if they choose to do so by only hearing about the foreclosures selling. In November and December 428 private home owners in Macomb County moved on to wherever they were heading because their homes sold.

Goodness. Don't apoligize to me. This is a wonderful post. It surely got my attention. I still see the problem for home owners as the matter of negative equity. Many more privately owned homes would sell if the folks didn't have to pay off a mortgage that was higher than market value.

I couldn't agree with you more. Everyone has been scared to make a move with all the doom and gloom in the media. No need to sugar coat it but the facts aren't nearly as scary as the media forecasts.

Kris I love the blog. I think it's a great statistic of what is going on. I still think buyers are still very price conscious but that doesnt mean they will pass up owner occupied homes.

Kris - Good info. I am going to see how it stacks up to our market here. [and the comments are good too!]

Kris, I loved seeing the stats to show that homes reasonably priced are selling...privately owned homes. I don't know what the stats are here but the building of homes continues so I have to believe they MUST be selling!

We have seen similar results in Grand Rapids. Too bad sellers have to compete with the bank owned properties. The one bright light is the banks take so long to respond and traditional sellers can respond much quicker.

JAN

Lenn:   Thank you. And yes, the negative equity is affecting a large percentage of homeowners in this area. Myself included...hubby and I are perfect candidates for condo living now (empty nesters, tired of shoveling snow, etc.) however we wouldn't be able to sell our home without bringing cash to closing. I would love to downsize into a nice condo but can't. I hear this same story over and over again from those who would want to sell.

Richard:   I just wanted to let people know that there is a bit of rosiness in all the dark doom and gloom. Thank you.

Heather: If the privately owned homes are priced well then buyers will flock to them. Pricing is and always has been the key. Thanks Heather.

Gary:   I'll be checking out your blog to see if you have an update in your area. I do enjoy reading and learning about other parts of our fine country. Thanks.

Carole:    Homes are selling, and most are foreclosures, but not all. New construction is almost at a standstill here in my area, but it doesn't sound that way for yours. Thanks so much Carole.

Terry:   That is a bright light indeed! So many buyers are tired of the long turn around time, the endless addendums, and the lack of maintenance that viewing a well taken care of home is a joy.

Non-bank owned homes are better ... if the price justifies it. If not, then the REOs rule. That is what is. Price is the only thing that mattes in a market like this.

Kris this really doesn't surprise me all that much as there are quite a few good bank owned values out there. There is also the perception that all of them are great deals which creates interest.

JAN

Jim: You're right - pricing is key. Thankfully most home owners in my area get that. They know that they have to compete with the bank owned homes.

Bill: The bank owned homes are creating interest, but not to the exclusion of privately owner occupied homes. In my area there are buyers that are tired of viewing the distressed sale homes and want something in good condition.

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