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When you plan on purchasing a home using mortgage money it doesn’t matter what type of mortgage you are applying for (FHA, VA, Conventional) - your mortgage lender is going to order an appraisal of the homes value.

They will want to make sure that the amount of money you are asking to borrow is not more than the home is worth in todays market. Below are a couple of things that I do as a buyers agent to help make sure that my buyer clients are not wasting their time and money on a home prior to writing the offer:

Investigate the last 90 days of sold homes within a 1 mile radius, in the same school district and of similar construction & features.  (Do not consider sales data greater than 90 days unless you have fewer than 3 comparable sold homes in that initial look back period.)

Include the distressed sales in the search of sold homes.  (They are the norm now, unfortunately, and you can bet that the appraisors are going to use this data in their reports.)

Deduct sellers concessions that were paid by the seller of the sold homes to the buyers from the “sold” prices. This deduction will reflect the market value of the home that sold more accurately.

Ask your agent to prepare an analysis using this type of data to present to the seller and their agent when your offer is presented.   It is much easier for the seller to understand how you came to the price of your offer when they have hard raw data in front of them.  It then becomes more of a business decision to them, and less of a personal affront if your offer is much lower than their asking price.

If your offer is a sound one, based upon recent data and your own personal view of the homes value, and it is not accepted by the seller don’t be shy about walking away and finding another home.   A buyers agent who is working for you would much rather have you walk away then to spend emotional energy and financial resources to continue the process of purchasing a home without much of a chance of it passing the lenders appraisal guidelines.

Contact Kris Wales - A partner for your real estate needs in Macomb County MI

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Yesterday while out and about doing my personal errands I stopped in to my favorite meat market - Marcos Meats.

Anyone that knows me knows that I am a big proponent of having a business website.  Yesterday while in Marcos I learned that they finally have a website up, and I must say it looks wonderful!

Another thing I learned was that you can call your meat and deli order in to them and they will have it ready for you to pick up at your convenience!   For busy people this service will be wonderful. (I’m too much of a chatterbox and love to go personally and visit with everyone while I’m placing my order.)

If you are in the neighborhood (on the south side of 9 Mile at Schroeder - almost directly across from McDonalds) please stop in and meet everyone there and sample their meats & deli items.    You can also visit their website before you shop to find out their weekly specials as well as their own recipes for the meats & deli items.   I think I’ll give them my recipe for minestrone soup that I make with their sweet italian sausage!

—Photo of Marcos Meats was taken last summer - don’t hold me, or them, to the prices on the window in the photos –

~Kris Wales~ A partner for your real estate needs in Macomb County MI

I knew it wouldn’t last forever, but I was kind of shocked to get the information in my email that the HUD incentives for Michigan are ending soon.

As of February 12th of this year (yes, less than 2 weeks away) HUD is putting an end to the wonderful incentives that they’ve been offering for the past year or so on Michigan.

The $100 down FHA program will be gone, as well as the $2500 buyers “gift” on home purchases over $25,000.

Please please PLEASE if you are considering putting a bid on a HUD home and want these incentives your bid has to be accepted by February 12th.  Any bids  accepted after that date will not be able to use these incentives.

Last week I wrote about the average sales price during the 4th
quarter of 2009 for residential sales in Macomb County MI.
I thought it would be interesting for those who are perhaps looking for
a home to purchase in Macomb County, or those who are considering
putting their homes on the market to get a glimpse of the homes that
sold near the average sales price of $92,626

In St. Clair Shores (the south east
side of Macomb County) this home
on Marter sold for $90,000 with
$5400 being paid by the seller in
concessions to the buyer. This brick
ranch featured 3 bedrooms,a 2 1/2
car garage and was approximately
1450 square feet.

Along the Martin and Gratiot corridor in
Roseville this home on Rock sold for
$93.000 and the seller contributed $2927
in concessions to the buyer.  It is also a
brick ranch with 3 bedrooms,  1 1/2 baths,
a 2 car garage and is approximately 1425 square feet.

On the far east side of Macomb County towards the north is Harrison Township.   This ranch on Chart Street sold for $94,750 with sellers concessions of $5685.   It has approximately 1000 square feet and is a 3 bedroom home with a 1 1/2 car garage.

New Baltimore MI is on the northern end of Macomb County bordered by Anchor Bay on Lake St. Clair.This newer built ranch home on County Line sold for $94,000 with the seller paying $2820 towards the buyers closing costs (concessions).   It is approximately 1200 square feet with 3 bedrooms, 2 full baths and a 2 car attached garage.  (Home is being reported as a foreclosure sale)

If you have any questions about recent home sales in your area please do not hesitate to contact me. No pressure - just conversation.

**All sold data courtesy of Mirealsource™ and its participating brokers & agents and is deemed to be reliable but not guaranteed **

A recent question on Trulia Q & A section has still been on my mind days after I replied to it.

The former home owner who asked the question was denied a short sale in which the lender wouldn’t take $30,000 less for their home. It was then foreclosed upon and sold for $116,000 less that what was owed.

As someone who is seeing this type of thing happen in our Macomb County area time after time again I am outraged. I am also curious as to whether these people would stand a chance in court with an affirmative defense of “plaintiff failed to mitigate damages” ?

My prediction: It’s going to be a wild 5 years or so of increased litigation, precedence set in some scenarios, and more debt buying companies jumping on the “let’s buy the debt and sue for deficiency balances” bandwagon.

Are any of you reading about or seeing firsthand this type of activity by the banks / mortgage holders starting to try and collect the deficiency balances after denying a short sale?
~Kris Wales~  A partner for your real estate needs in Macomb County MI

How did the Macomb County MI real estate market fare during the 4th quarter of 2009?

As I read through the statistical reports for Macomb County yesterday and this morning I tried to get a feel for what I am seeing and analyzing.

2009 was indeed a tough year for home prices in the county as a whole, with the average sales price of a single family residential home plunging by 22.5%.   Looking at the sales prices recorded in the month December there seemed to be a bit of stabilization:  There was only a 2.7% drop in sales prices when looking at December 2009 compared to the sales prices in December of 2008.

One months worths of sales prices in comparison to the previous years for the same month however doesn’t predict a trend. Yet when I look at the 4th quarter of 2009 I am encouraged:

This is the smallest difference in reported sales prices that I have seen in years.  It is also encouraging to me because if this trend holds we may be starting to see some stabilization in the freefall of prices that have it our region of Michigan so hard during the last several years.

A couple of things need to happen to ensure that this stabilization occurs:   Job loss needs to be nipped in the bud, and there cannot be an increase of foreclosures to hit our real estate market again.

Over the next week or so I will be posting more comprehensive sales analysis for each section of Macomb County.  (For example:  How the city of Eastpointe is doing in comparision to Shelby Township, etc. In the meantime, if you would like a detailed analysis of how your neighborhood is faring please don’t hesitate to contact me for a no obligation market report.  No pressure - just conversation.

~Kris Wales~  A partner for your real estate needs in Macomb County MI
(586) 536-5453        Kris@Macombhomes.com

Search homes for sale in Macomb County MI with MLS provided data

It’s been a bit quiet here on my blog, but that will change once the holidays are over. Nothing earth shattering - I’ve simply been enjoying my family and a bit of a breather from the every day stresses of Michigans economy.

I hope the Christmas season is a happy and healthy one for you and your family, and that the new year brings hope and stability to all of us in Michigan.

Merry Christmas!

Congratulations to Ashley, a single woman who purchased her first home.

The home she bought was owned by HUD, and everything about the purchase process went smoothly. Unlike other bank or government owned homes, HUD has an online process for bidding. Everyone that bids knows when their offers to purchase will be considered, and it is a fair system to all.

HUD also has a system in place for the buyer to request permission to turn on the utilities to the home so that they can have their inspections be thorough.

Ashleys new neighbors are also happy that another vacant home will be cared for and help to stabilize their property values.

I came across the website below put out by the National Association of Home Builders and it’s wonderful. They answer most of the questions that are being asked by consumers about the extended 1st time home buyers tax credit, and also those who are hearing about the repeat home buyer tax credit.

Frequently Asked Questions about the new home buyer tax credits

Much thanks to the guys & gals at the National Association of Home Builders for putting this together so quickly and concisely.

After much back and forth, and preliminary hype about the extension of this tax credit, we can now confidently write to our local consumers about this bill being signed by the President.

The 1st time home buyers tax credit HAS been extended, and there is also a tax credit for those who already own a home yet wish to sell it, and purchase another.

Below is a quickie FAQ about the credit:

Key dates: November 7, 2009 through April 30, 2010

Amount of First time home buyer tax credit: 10% of the purchase price up to a maximum of $8000

Current homeowner tax credit: $6500 or $3250 if married filing separately.

Binding contract rule: Must have written binding purchase contract by April 30, 2010 and close by July 1, 2010.

Anti fraud rule: Must attach proof of purchase documentation.

If you have any questions about how this newly extended tax credit may apply to you and your Macomb County MI home purchase please don’t hesitate to call or email me.  No pressure - just conversation.