A SELLER'S MARKET, YOU BETCHA!

HOLY SMOKE, IT'S BEEN SO LONG SINCE I'VE BLOGGED ANYTHING, I MUST HAVE EITHER FORGOTTEN, OR I'VE BEEN BUSY! PROBABLY A LITTLE BIT OF BOTH. RIGHT NOW, FOR PRIVATE SALE HOMES, THOSE BEING THE NON FORECLOSURE, NON BANK OWNED, NON SHORT SALE VARIETY, WE ARE DEFINATELY IN A SELLERS MARKET. I LISTED A HOUSE IN MY SUBDIVISION IN EARLY MAY. 10 DAYS LATER, IT WENT PENDING AND WE'LL CLOSE IN LATE JUNE, AT FULL PRICE, $124,900 AFTER 18 SHOWINGS IN 9 DAYS! I SHOWED A NEWER HOUSE IN MY SUB JUST THE OTHER DAY. A REAL BEAUTY. MY BUYER LOVED IT, BUT COULDN'T GET AN OFFER IN ON TIME. WHY??? WELL, THE HOUSE WENT ON THE MARKET AND HAD 18 SHOWINGS THE FIRST DAY! 5 DAYS LATER, THE SELLER HAD 6 OFFERS TO LOOK AT, ALL FOR OVER THE LIST PRICE OF $219,000. AGAIN, THESE WERE PRIVATELY OWNEDS HOMES, NON BANK OWNED, NON FORECLOSURE AND NON SHORT SALE. AND I SOLD A BEAUTIFUL COLONIAL IN LAKE ORION TO A YOUNG COUPLE FROM MY SUBDIVISION A FEW WEEKS AGO AND WE CLOSE IN A FEW DAYS AT FULL PRICE, WITH THE SELLER PAYING SOME CLOSING COSTS. SO WHY THE SELLERS MARKET RIGHT NOW? PENT UP DEMAND. BUYERS ARE GETTING TIRED OF LOOKING AT FORECLOSURES AND SHORT SALES. PLUS, THE SUPPLY OF FORECLOSURES AND SHORTS SALE HAS DWINDLED TREMENDOUSLY. SO IF A BUYER IS LOOKING FOR A HOME AND IS PRE-APPROVED, THEY AND A WHOLE BUNCH OF THEIR BUYERS FRIEND HAVE BEEN OUT THERE, BEATING THE STREETS AND KICKING TIRES TO FIND THAT DREAM HOME THEY'VE BEEN LOOKING FOR. WE HAVEN'T HAD A SELLERS MARKET LIKE THIS IN 6 OR 7 YEARS. WHATEVER PRICE THE SELLER IS LISTING THEIR HOUSE FOR, IT'S SELLING FOR THAT PRUICE AND HIGHER IF IT'S PRIVATELY OWNED. OF COURSE, THE UPTICK IN THE ECONOMY HAS ALSO HELPED AS PEOPLE NOW FEEL MORE COMFORTABLE WITH THE CURRENT ECONOMIC RECOVERY! WELL, GOTTA GO FOR NOW. GOTTA GET OUT THERE WITH SOME BUYERS TO FIND THEM A GOOD HOME. OF COURSE, IF YOUR A SELLER, LOOKING TO PUT YOUR HOME ON THE MARKET, THEN WHAT BETTER TIME THAN RIGHT NOW? CALL ME AND I CAN EXPLAIN WHY. OH, WAIT A MINUTE! I JUST DID!!!!!

Where Does The Time Go

It's Holiday season again. It seems just like yesterday that I wished everyone a Happy Holiday season and a prosperous 2011! Time flies, doesn't it!!

I haven't posted much here lately. Sorry about that. I did take a trip to New England in July and August, visiting relatives in New Hampshire and Connecticut and was gone for about 10 days. Then in the past month or so, I've had eye surgery on both eyes. A regular trip to the optometrist detected age related cataracts in both eyes, so I had lens replacement surgery on one eye on November 21 and on the other, December 12. As far as the results of the surgery....I CAN SEE, I CAN SEE, I CAN SEE!!

It takes a while getting used to though. After spending my life nearsighted, in other words, having great visiion for things up close, while things at a distance were blurry, I now have great distance vision, but have to wear reading glasses while looking at those those wordy, real estate contracts, lol. Yet, it's been a revelation and if you're, in the future, informed you have age related cataracts, don't hesitate to have the surgery!

As for real estate, it does appear that the abundance of foreclosed, bank owned and short sale homes is bing reduced. The last figures I saw for the month of November, 2011, indicated there were just over 7000 homes currently for sale in Oakland County. That's down from 12-13,000 a couple of years ago. An ideal, perfect balance situation though, would be about 5000-5,500 homes for sale. Interest rates also, are still at all time lows. So soon, hopefully, buyers will start jumping on the bandwagon to take advantage of those low rates!

I'd like again, to take this time to wish all of my clients, past, present and future, HAPPY HOLIDAYS! And may 2012 be your best year, ever!!!!

Really??

Recently, while I was away on vacation, someone in my neighborhood, listed their home for sale with another agent for 199,900. This home is clearly priced 52,000 dollars more than any other home in the neighborhood and based on it's size and age, should sell for right around what a recent listing of mine (a perfect ten, just a primo beauty of a home) sold for in the subdivision, 120,000. That listing of mine took only 40 days to sell, based on the fact it's averaging 157 days to sell a home in my neighborhood and it appraised for 121,500, 1500 dollars over the sales price, which is very, very good!

So with this in mind, it's time again for a little lesson in what happens when you price your home and put it on the market for sale. You get an offer down the road. That offer includes a mortgage the buyer has to take out from a bank or mortgage company, in order to purchase the home. That bank or mortgage company then sends someone out called an appraiser, to appraise the property's value, based entirely on recent sales prices in the neighborhood. That appraiser comes up with the homes value and turns their findings over to the bank or mortgage company.

So if the house is priced at 199,900 and the buyer wrote an offer for 180,000 and the seller accepted it, you then hope that the appraiser accepts it. In the case of my neighborhood in Troy, the appraiser would more than likely appraise the property for about 120,000. That's a difference of 60,000 between the sales price offered and the appraised value of the home. That also means, the buyer now must way overpay for the home, by coming up with that 60,000 dollar difference out of pocket, or the deal is off, unless of course, the seller is willing to lower their sites just a bit and accept the appraised value of 120,000.

And so it goes and it's always gonee that way, frankly! Price your home to sell when you put it on the market. Look at the comparable properties your real estate agent presents to you. If you way, way, way overprice your home, it will just sit there for month after month and will not sell! The house will eventually get word spread that the "houses is not selling because there's something wrong with it" and thus buyers and their agents will stay away in droves!! Buyers, with good buyers agents, will stay away in droves anyway, knowing the house is way, way, way overpriced!

Here Comes Summer!

Well, it's summer again! A happy time for many folks, although, I prefer fall myself with the beautiful colors Mother Nature puts out there for us to admire!

Summer means warm days, warm nights and it also means, we survived the great rains of the spring of 2011! I know many have flooded basements because of the oversaturaton of the land and with that, comes cleanup problems. If you're thinking about marketing your home, better get that basement spotless! While women among buyers will eyeball the kitchen and the baths, the men will spend most of their time, eyeballing the basement. Better have it ready for that "eyeball inspection."

Interest rates are still low, but not at the all time record low levels they were at a year ago. Still, rates are wonderfully reasonable compared to where they were say, 5 years ago and some banks and mortgage companies are even rolling out adjustable rate mortgages again. But shop cerefully, if your looking to buy a home or refinance your current home. Check into at least 3 mortgage companies or banks before making your borrowing decision.

As far as listing a home for sale, inventories are actually down as we "clean out" all of the foreclosures and short sales. But, it's still a buyers market out there and until the economy shows definate signs of improving, buyers are fearful of committing and sellers aren't putting their homes on the market unless they absolutely have to, due to things like an impending job transfer to another part of the country.

So whether you're listing, selling or just refinancing, or even if you're just going to stay there with a pat hand, enjoy the upcoming summer of 2011.

Wake Up America!

I recently listed a home for sale in my subdivision and as I usually do, I sent out postcards to my sub, heralding the good news. A couple of days after sending the cards out, I get a phone call. It's from someone who also lives in the subdivision and they asked "Is that asking price you have listed on the postcard, correct?"

Well, I replied "Why, do you think it's to high?"

The response was a stunner..."No, I think it's way to low."

So we chatted. Turns out this fellow subdivision homeowner had paid about $200,000 for their current home 5 years ago and had put quite a bit of money into the home in upgrades since then. Now, here I was, their local, friendly Realtor, telling them their house was worth 35% less than what they paid for it. I could hear the current homeowner hyperventelating over the phone!

I asked "Haven't you been following the news for the last 4 or 5 years. We've been in a deep recession here in our area and home prices have fallen drastically as a result. There have been many foreclosures and short sales driving prices down." The homeowner asked, so I offered my explanation of a short sale.

I was next asked, when this situation would straighten out. I said predictions are that home prices won't rebound to their 2005-'06 levels for at least a decade. The homeowner was stunned. "I and my spouse are in our early 50's now. By the time that decade is up, we'll be in our early 60's." I told the homeowner that I often joke with friends that I paid $72,000 for my current home in 1984 and pretty soon, it's going to be worth.....$72,000. Right now, it's probably worth about 120,000 after having been up to about 190,000 5 years ago!

Hopefully this was a lesson learned for the hyperventelating homeowner, don't live in a fishbowl. And, everything I've posted here is all true!

Here and There, Financially Anyway!

Well, spring is upon us and the thoughts of buying a new home are entering peoples minds. There are some real bargains out there, especially with prices continuing to fall. I joke to people that I paid $72,000 for my home when I baught it in 1984 and if prices keep dropping like they have been, in a couple of years, my home will be worth......$72,000!

2 stories on this recently caught my eye. First, was the announcement in late February that home prices continued to fall in 2010, over 2009. As an example, between October 1, 2009 and September 30, 2010, the story said, home prices in Troy, fell another 7.5% over the figures they were priced at for the previous year. It was stunning, yet interesting reading. And those price falls were everywhere in southeast Michigan. No community escaped the price fall!

The second story was in the newspapers just the other day, predictions that no one knows when prices will stop dropping. Homes are now selling for the prices they were fetching in 1994! I would not call it a "free fall" but don't believe anyone who tells you the real estate market has "bottomed out." No one knows. Even I for the past year plus, have been telling people the market has hit bottom, but I was just going on what economists were predicting.

My best prediction now, we are seeing foreclosures and short sales selling for higher prices than they were a year or two ago, a sure sign that eventually, the foreclosure and short sale market will dry up, leaving room for the private sale home to creep back into the marketplace. However, my feeling is that the "drying up" of the "problem" homes won't be complete until the end of 2012 or midway thru 2013. But what do I know, I've been wrong, along with everyone else on this issue, for a year and a half!

Happy 2011

Well, the New Year is here and yes, if you've followed my blog, the helical piers are in! The job took about a week and a half because of the cold weather, the frozen clay earth and the dryness of that earth, but yes, the piering was finished and my family room was raised a little over half an inch on Wednesday, January 26, 2011 and then stabalized so that it will never sink again! It's almost level in my family room now, after having been way off level and the exterior cracks have closed somewhat. They also sealed a major crack in my basement in the opposite corner from the family room, which had been there for years and years, probably since my home was built in 1967.

Please also note, if you've been following the newspaper reports, home prices in our area have now sunk to 1994 levels. In other words, if your home was worth $200,000
in 2006, but was worth 120,000 in 1994, well then, you should put it on the market for the 1994 price, or somewhere close to it. You'll never get even close to that 2006 figure. Some people try, but then find out the house will never appraise for a mortgage and right now, the buying and selling of real estate is being run by appraisals. It just shows you how badly the economy affected Michigan and like I've been telling people all along, the country may have been in a recession, but Michigan was in it's worst depression since the 1930's.

I do believe sincerely that we have hit bottom and the economy in our state is turning around. But it's going to take a while for a noticable increase in home prices. The big thing is to get current inventory down and also purge the available
homes list of foreclosures and short sales. That is slowly but surely happening, but frankly, most of the home sales today are still foreclosures and short sales. And with interest rates rising to around 5% from historical lows closer to 4%, home buying and selling, just got a little tougher!

Got A New Problem At My House!

Well, the last time I was on board here, I blogged about my roof replacement and how much the extra wood needed, cost me out of pocket. Well, a week or so after the roofers left, I had my satellite company come out to "refocus" my dish, because the roofing people had to move it. Well, during that process, I'm watching the satellite guy staple some wiring to the side of my house and I note that some cracks, which had long been there between bricks, had really widened. Of course, I had not been watching them closely, but it was far worse than needing some tuckpointing. At one spot near a windowsill under a picture window, the crack was nearly an inch wide! In the main part as the crack zig zagged down to ground level, it was half an inch wide!

So, I approached a local home inspector with some pictures and he told me I needed piers put under my house and he recommended I get 3 estimates. So, I checked the Yellow Pages and found 3 companies that did helical piering and over the period of a week, got all 3 estimates, ranging from $9500 to $15,500. The $15,500 guy wanted to pier the entire back of my house with 12 helical piers, while the other two companies said that was not necessary. Just the family room had sunk an inch and a quarter to an inch and a half over it's 43 year life, while the other back corner of the house, had barely sunk a quarter of an inch at most. Something to watch the other 2 compnies said, but it doesn't need fixing right now.

So my choice was the mid price guy, about $9900. They'll put in 7 helical piers around the sides and back of my family room and raise it back up to level. After that, I can't have any repairs to the interior for about 6 months, because the house, the beams, the interior, all need to get used to the new "settings" as it were. And oh yes, the interior cracking is horrible, right in the same spot where the exterior brick cracking was going on with big splits in my drywall inside.
So I suggest you be observant of the exterior of your home, especially if you have cracking where mortar used to be between the bricks, if you have a brick exterior. And if your family room is on a slab, like mine. I have a nice basement, but a slab under that family room. Be aware, that the slab under the family room can sink, creating this cracking problem!

'Tis the season again. Seems just like yesterday that it was Christmas, 2009 and now, it's 12 months later. So from my "cracked" house to your "healthy" home, my wishes for a Happy Holiday! Seasons Greetings to all!

The Leaves Are Falling, The Vote Is Coming

I love the fall. It's my favorite season. And we've been blessed in Southeast Michigan the past few years, with some glorious, warm, sunny autumns, well into November. So far as I type this, 2010 has not been an exception. We've had great weather leading up to halloween and more importantly, up to voting day, November 2. The recent "breezes" aside, it has been great and as for those breezes, well, something has to knock the leaves off the trees, right?

It's time for a voting pitch. No matter what party you're a member of, exercise your franchise on November 2 and get out and vote. If your candidate doesn't win and you didn't vote, you've only yourself to blame. The founding fathers gave us this priviledge and to me, it's the most important thing one can do for one's government, voting in the people you feel can run that government best. So, as an old radio jingle used to say, "be a good citizen, get out and vote."

Enjoy the fall and I look forward to future blogging about all things real estate. And if you have the opportunity and are inclined to either buy your first home or move up into a new one, you can't beat the mortgage rates we're seeing right now. All time, historical lows. Why, people are even taking advantage of 15 year fixed rate mortgages, to pay their homes off faster, at rates well under 4%. Nows the time to buy, as the economy finally appears as if it's starting to trend upward!

Autumn Thoughts

Well, interest rates can't get any lower than this. They're already at all time lows of just around 4 1/4% for a 30 year fixed. Yet, I heard today on CBS Radio News, that demand for mortgages is down for the third straight month. I know it's tuff out there and that people are still worried about their jobs. But is it more that, or is it bankers and mortgage companies are being a little tighter with their money?

And also, this time, I'm the consumer giving you some advice from first hand experience. I just had my roof done and also new gutters and downspouts added. Now I had a second layer and shingles put on in 1996, along with new gutters and downspouts. This though, is more about the roof than gutters and downspouts. My home is 43 years old. Last week, I signed a contract for the work, which included 100 free square feet of plywood to replace the old plywood that had been on the roof since 1967.

Well, once the roofing company got up there, they discovered a ton of decaying, rotting plywood which had to be replaced, far more than the free, 100 square feet, far more. Also, several cracked trusses had to be shored up, at an added cost for 2 X 4's which were not in the contract. And the facia boards, on which the gutters hang, were rotting away and 75% of those had to be replaced at still more cost per board foot, not in the contract.

My point being, the cost of my roof job, has exceeded the original estimate on my signed contract by 16%! So be aware of these things. The roofing company, when they come out and give you an estimate of the costs, has no idea how much bad wood they'll find up there. My roof and my gutters look beautiful now and I've got a 30 year warranty on the shingles, PLUS a 30 year warranty on the company's workmanship. And yes, in case you ask, I was invited up on my roof, 4 or 5 times to see just how bad the wood was and what their plans were to fix it. I accepted each invitation, so I could see first hand, what was going on and I wholeheartedly agreed on the repairs.

I'm happy, but just be aware of these things if you're planning a roofing job in the near future!

Yes, Even Us Realtors Can Learn

It's funny, but it happened to me, having to list a house as just a client, not a Realtor and having to sit, wait and sift through the offers. Now I know how a lot of you feel, when you're put in the same position.

As the executor of my parents estate after they both passed away in 2009, I had to put their house on the market in their native New Hampshire. I carefully sorted thru Realtors and decided the way to go was through the only real estate office in their little town of Kingston, New Hampshire. So I selected an agent from that office and she knew her stuff and was very helpful. The house went on the market in mid October, 2009. Now this house needed some work and as it turned out, cost me about $15,000 to bring it up to snuff to pass an FHA inspection. We had innumerable offers along the way, many "lowballs" which were rejected and finally, in mid April, came an acceptable offer of full price on an FHA deal, $185,000, but I also had to pay about 5% in closing costs for the young buyers.

At first, closing was scheduled for "on or before May 21, 2010." As it turned out, some of the necessary work to get the house up to snuff, had to wait until the weather turned warmer, like exterior painting. So around May 1, I started getting all kinds of phone calls here in Michigan, from New Hampshire. My Realtor, my New Hampshire attorney, contractors wanting to talk about their work and also wanting to get paid. It got to be so bad, 8 or 9 calls a day from New Hampshire, I finally threw my hands up in disgust because it was interfering with my work here in Michigan. So I decided on May 12, I'd had enough and it was time to get out of Michigan and head to New Hampshire.

I arrived there a week before the anticipated closing was scheduled and there was still work to be done, like chimney and fireplace crack repairs ($2300), septic tank draining ($150) and yes, I even had to rent a dumpster for the driveway ($500). In the case of these 3 jobs, I had to be there because the contractors involved, would not take a credit card number over the phone. They needed me there, in person, to hand them a check, another good reason why I "got out of Dodge" so to speak and headed to the Granite State.

Finally, came the big day, Friday May 21. Well, in came the call from my Realtor. The mortgage for the buyer wasn't ready yet, we'll have to close Monday the 24th. Then came Monday the 24th and again, "the mortgage isn't ready yet, we'll now close no later than Wednesday the 26th." I actually was allowed to get involved with the buyers mortgage person. I told him, "we'd better close, because I don't want this to spill past Memorial Day weekend into June, as I've got to get back to Michigan." Well, it didn't close the 26th either, but, with some arm twisting by my Realtor, we got a closing scheduled for the 27th at 1230pm at the county registrar of deeds office.

Finally, a closing! Yeah!! It took less than an hour and I had my check. A quick trip to the cemetary to say goodbye to Mom and Dad (I'll be joining them there, but I hope not in the near future) and I had had enough of New Hampshire!! I took the check and deposited it in my Bank of America account (they are all over the place, even in New Hampshire) and then, I hit the freeway and headed back to Michigan, arriving back in Troy the night of May 28, after an overnight stay in Syracuse, New York. My own, personal real estate story, successfully completed, even if delayed by almost a week due to unforseen forces!

And now, I can sympathise with some of the issues my clients have to go through!

Commissions!

Today, what amounts to a sore subject for some people, paying a Realtor a commission to sell their house.

I was driving thru Royal Oak the other day and I noticed a "For Sale By Owner" sign. We Realtors call such properties FSBO's, pronounced fizz-bo. At the bottom of this Royal Oak "fizz-bo" sign was something else "Realtors 4%." Now what this means is, the "fizz-bo" homeowner is willing to pay a 4% commission to any Realtor who brings him a buyer. The industry standard is 6%, so either this "fizz-bo" thinks he's getting a big savings, or they don't realize how a commission is split! Of course, if he does pay 4%, he is saving money, but the industry standard for an agent who brings a buyer for the property, is 3%.

The standard 6% commission is split 2 ways, 3% to the listing office and 3% to the selling office. So your listing agent doesn't walk away with a 6% commission. Your listing agent doesn't even walk away with the 3% that goes to the LISTING OFFICE! That 3% is divided up between the listing agent, his or her company broker/owner and, if there is a franchise involved, like CENTURY 21 National, there's a franchise fee that both the company broker/owner and the listing agent pays.

A general rule of thumb, on a 6% commission, the listing agent is going to walk away with 1.32% of the sales price of the house, not 6%. So on a sale of $100,000, the 6% commission is divided like this, $3000 for the selling office, $3000 for the listing office. That $3000 for the listing office is then split into $1500 for the listing agent and $1500 for the broker/owner. The broker/owner then has to pay a 12% franchise fee, $180, as does the listing agent. So the listing agents actual take from that 6% commission is $1320 on that sale of $100,000!

And that dear friends, explains how real estate commissions are paid!

Goodbye Ernie

I published this in the Detroit News Tiger Forum on the New's website on Wednesday afternoon, May 5. It is my Ernie Harwell story:

Back in 1997, I was working as a sportscaster at WJR Radio in Detroit. I had just been nominated in January, 1997, by my peers in the State of Michigan, for the 1996 Michigan Sportscaster of the Year Award, as presented in each state every year, by the National Association of Sportscasters and Sportswriters. There was only one other nominee, Ernie Harwell. So, I figured this was the end of that honor. Ernie had won the award something like 12 times previously. I had been nominated 7 or 8 times total during my career at both WAAM in Ann Arbor and WJR, but had never won and never expected to.

Guess what? In March of 1997, it was announced I had won the voting, much to my total and complete shock. The morning I was notified I'd won, I'm sitting at home and my phone rings.....it's Ernie. He must have called the station and gotten my home phone number. "Mister Chapman, this is Mister Harwell." Those familiar Georgia tones and inflections. I replied "Hi Ernie." He then came back with "Congratulations on winning the Sportscaster of the Year Award. It's well deserved." Ernie did not have to do that, very few if any would have made that congratulatory call. I will never forget it. I'd known the man, not intimately, for my 13 years at WJR. What made it more special, was him not saying "Paul, it's Ernie. Congratulations." It was him using his wonderful salutation of "Mister Chapman." If he called you "Mister" you knew you were in Ernie's good graces.

It was a very special moment in my life and it shows the gentleman that he was thoughout his career and his life. God bless you Ernie. My consolences to Miss Lulu and your family.

Questions Answered On The Homebuyers Credit

The April 30 deadline is fast approaching to get a deal signed and confirmed, in order to qualify for the credits being offer by Uncle Sam on home purchases. Here are some of the more commonly asked questions and their answers, courtesy of the National Association of Homebuilders!

1. How does a home buyer claim the tax credit?

Answer: The credit is claimed when the home buyer files or amends their federal income taxes. For qualifying homes, purchased in 2009 or 2010, the taxpayer must complete form 5405 and attach a copy of the settlement statement. In most cases, the settlement statement is a properly executed Form HUD-1.

In circumstances where a HUD-1 is not provided, such as purchasing a mobile home or a newly constructed home, the IRS will accept an executed retail sales contract(mobile homes) or a copy of the certificate of occupancy (new homes).

2. Does the homebuyer have to sell their current home in order to qualify for the $6,500 repeat buyer tax credit?

Answer: A home buyer does not need to sell their current home in order to be eligable for the repeat buyer credit. They can continue to own both homes, and rent or use their former home for something else, as long as it no longer serves as their principal residence. The taxpayer is required to use the new home as their principal residence, and live in it for at least 36 months, or they will have to repay their credit.

3. Do married couples both have to meet the eligability requirements in order to claim the credit, even if they file taxes separately?

Answer: Both spouses must fully meet all of the eligability requirements for either the $8,000 first time home buyer tax credit or the $6,500 repeat buyer tax credit, regardless of if they file joint or separate tax returns. However, if an unmarried couple purchases a home and only one person qualifies, the eligable person may claim the full credit.

4. Do all home purchases need to be completed by April 30, 2010, in order to be eligable for the credit?

Answer: There are 2 exceptions to the April 30 deadline. If the buyer enters into a binding contact by the deadline, they have until June 30, 2010, to complete the purchase. The deadline has been extended a year, to April 30, 2011, for members of the uniformed services, Foreign Service or employees of the intelligence community who have been on qualified extended duty outside the United States for at least 90 days, between January 1, 2009, and April 30, 2010.

I hope these questions and answers help and I hope you have the opportunity to take advantage of Uncle Sam's gift to homebuyers!

Don't Forget Your Tax Break!

We're hearing a lot today about the up to $8000.00 tax break for first time home buyers, if their deals are written and accepted by April 30, 2010 and close by June 30, 2010. It's a terrific deal for first time home buyers, but there's also another part of the story I don't want you to forget and that's the existing home buyer!
Have your deals written and accepted by April 30 and close by June 30 and even if you're a current homeowner, you'll get a nice tax break of up to $6500.00.

Yes, these are incentives to help spur the sagging housing industry. I think a lot of us found out, Realtors included, how much this nation's economy was dependant on new and existing home sales. It turns out that new and used home sales were actually driving the economy for the past decade and when people stopped buying homes, well, in came the worst recession we've had since the Great Depression ended in the early 1940's. Personally, I don't think these government deals will be extended. They were extended once, but like "Cash for Clunkers" which was extended once, then ended, I'm expecting the same thing to happen with these housing incentives!!

So with these government incentives and with mortgage interest rates still close to historic lows, what's stopping you from stepping up to the plate and buying your first home OR, putting your current home on the market while looking for a new place in which to dwell?

It Is And It Isn't About Real Estate!

On February 23, the voters in the City of Troy, go to the polls to vote on 1 issue in a city wide election, whether or not to raise the city's tax rate 1.9 Mills, or 29%. Now I have to admit, my property on Rhodes Drive, proudly displays a big "No" sign to a 29% tax increase and has displayed that sign for over a month. As I walk thru my subdivision daily (and I walk 2.5 miles a day, 4 or 5 days a week for health and exercise) I note the "No" signs are far out numbering the "Yes" signs, 2-1. I don't know if that means the mileage increase will lose 2-1, but it sure is interesting to see from their front lawns, how many citizens of the City of Troy are fed up. Someone has to recognize the economic turmoil the city's residents are in right now. Hundreds of Troy resident are losing or have lost their homes to foreclosures and shortsales because they can't afford their mortgages or their property taxes. And the city wants to raise those property taxes even more?????

On Friday, February 12, I received a postcard in the mail from the "Keep Troy Safe" committee. The return address listed on the postcard was that of Michael W. Hutson, who also happens to be the chair of the City of Troy Planning Commission. On this postcard, it clearly stated that the 1.9 mil increase, would actually not raise property taxes for Troy residents, but would reduce them $392.00 on the average Troy tax bill. Well, I sometimes wonder if the leaders of the city, elected and appointed, aren't so well educated and so well to do, that, like the rest of the country, who's leaders have lost touch with the public, our city leaders have lost touch too. Instead, they feel they know what's good for the city, far more than the people do.

Now I've lived in Troy on Rhodes Drive since 1984 and trust me, the City of Troy has been living high on the hog since I arrived. In 1984, the city had 60,000 people when I moved in. It now has 85,000+. It takes a lot of money to keep these city officials, elected and appointed, happy. Take the February 23 ballot for instance. On it, it talks about the 1.9 mil increase and mentions City Council will be able to use some of the tax increase in the future for "quality of life" purposes. I guess that means more bike trails, in a time of great economic hardship for the city's residents. I suppose it also means, eventually, a new city park in the south of Maple-Milverton area. Such a park would be greatly welcomed by our non resident, non tax paying, non English speaking aliens who live in the apartment complexes that line John R Road, across the street from Elder Ford. Well, we have a perfectly good city park right now, a half a mile north, called Brinston Park. Let them travel the half mile to a mile to enjoy that park like the rest of us area residents.

As a Realtor, I've seen Troy property values drop 25 to 30% in the past 3 years, after years and years of 3-6% annual increases in home values. Troy lived high on the hog on the backs of the people with those property value increases. Now it's time for the city to bite the bullet, as a majority of it's residents have. Tighten your belt Troy. Keep costs and expenses down for the next 5 or so years, while the City, the County, the State and the Nations economy recovers. No new parks, no new bike trails and please, don't insult my intelligence by telling me that 47 police employees will have to be laid off if the mileague doesn't pass. And why the picture of a fire truck on that Friday postcard, when we all know the city has an all volunteer fire department. And why the picture of the sand and salt truck, when the county takes care of our surface streets, while the city doesn't even plow in subdivisions unless there's at least a 5 inch snowfall. We've had one of those 5 inch storms thus far this year.

And why oh why, does the City of Troy own not one, but two golf courses, Sylvan Glen at Rochester Road and Square Lake and the very big, money losing, Sanctuary Lake Golf Course behind Troy Beaumont Hospital? Figures I've seen show that Sanctuary Lake is losing tens of thousands a dollars a month, 700,000 per year. Whenever I drive by, I rarely see anyone in the Sanctuary Lake parking lot, nor out on the course. Why could the city have not sold some of that land to Beaumont for their new expansion, which instead went across the street into Sterling Heights, helping that city's tax base. And as for the Troy Police Department, if there are layoffs when this 29% tax increase passes, will they be the folks who are taking care of the City of Clawson? In these tough times, why are Troy Police, now Clawson Police as well?

Basically, this proposal, as most of them do, pits the city's younger residents against the city's older residents. In my 64 years, I've heard it all from the communities I've lived in and every, single time, they insult my intelligence when they want a tax increase by threatening to cut back city fire, city police, the library, the community center and other city services to a "bare minimum." It's time for the people of the city to see what this proposed mileage increase is. An increase in our taxes when a majority of the city's residents can't even make ends meet now or pay for their homes. I urge everyone who reads this blog who is a City of Troy resident, to vote no, please, for our future, on the February 23, 29% tax increase! Come on Troy, the ladder to the top of that hog isn't as high as you think it is!

It's About Time!

Yes, it's about time I said something here in this blog, so here goes.....something, lol.

I apologize for not posting for the last 6 months, but things were rather tough on the old Chapster during that stretch! First of all, on May 11, I lost my beloved father Reginald back in New Hampshire, at age 93 1/2. Dad had been living at home with his wife, my Mom Viola, almost until the end. He had spent his final month and a half alternating between a hospital and a rehab center. A fiesty character, he was very active until that final month and a half, mowing his own lawn, snow blowing his driveway and "puttering" around the house. He actually passed while I was home on vacation in May, so I did get to see him and speak with him, just a couple of days before he went to his final reward.

Then in mid September, I went home to spend 2 weeks with my Mom at their home in Kingston. All seemed well. I left New Hampshire September 24. On Sunday, September 27 while holding an open house in Troy, during a slow spell, I called Mom to check in. She always got a kick out of me calling her from a Michigan open house. Well, there was no answer. Then someone came thru the open house. After they left, I called my Mom again, and again, no answer. I called the local Kingston, New Hampshire police and gave them the lockbox number on my Mom's house. 25 minutes later they called me back and told me she was sitting in her easy chair in the living room, with no pulse. Mom was gone at age 87 1/2!

So between funeral services and estate things to take care on in New Hampshire, I've been busy in 2 states over the past 4 months! Anyone want to buy a 1457 sq ft ranch in Kingston, New Hampshire? If so, call my friend Lee Bartlett at the Merrill/Bartlett Agency in Kingston. She's MY real estate agent and she'd be delighted to speak with you about the home and I'd be delighted for you to speak with her about the home.

As for here in our area, home values seem to have bottomed out, but they will not be rising anytime soon. It will take a while. You know Michigan, first into a recession and the last one out! But please think about taking advantage of the new programs out there, including the tax break for both first time buyers and repeat buyers, that are in affect until April 30. It's a great way to get into a home while receiving a nice tax break from your Uncle Sam!

I've said this before and I'm saying it again. I'll make every effort to post here at least once a month in 2010, or more as situations warrant! HAPPY NEW YEAR!!

It's Been A While!

Sorry there has been no post by me since late March, but my elderly father, back in New Hampshire, had been going thru some health problems since mid March and finally passed away May 11 at age 93 1/2. He lived a long and fruitful life and was very active until being hospitalized in March. He still mowed his own lawn, got out the snow blower to clean off the driveway and did a lot of "puttering" around the house almost to the end! About the only thing he couldn't do anymore was drive a car. He couldn't pass the eye exam and lost his license at age 87. My Mom is still around, living in New Hampshire and she's 87 and just got her drivers license renewed for another 3 years.

But enough about me. How about you? If you're a first time home buyer (or have not owned a home of your own for the past 3 years), are you ready to take advantage of the $8000.00 first time home buyers credit, established by TARP, as part of our economic recovery program? You must close on your home by midnight, November 30, to get the credit and under some programs, the $8000.00 can be used as part of your downpayment. It would seem to be a great way for a first time buyer to fullfill their dreams of home ownership, while also helping the U.S. economy to get back on it's feet.

Also, for anyone who has been following this, or worrying about this, you may know, that our company, CENTURY 21 Town & Country, filed for Chapter 11 Bankruptcy Protection in March. Well, we exited bankruptcy protection yesterday morning,
June 30, and we are back, stronger than ever, with our 7 remaining offices, Troy, Birmingham, Rochester, Clarkston, Shelby Township, Clinton Township and Grosse Pointe and 500 agents. So good news for all of us, first time homebuyers and for the many agents working under the umbrella of CENTURY 21 Town & Country and our owner, John Kersten.

Spring Has Sprung!

Remember last March when we got all of that snow? I think it was like the 4th snowiest March on record. This March, nothing, as the month came in like a lamb and may go out like one as well!

On the real estate front, interest is picking up around our CENTURY 21 Town & Country Troy office. Our 80+ agents in Troy, including me, are being kept hopping by a huge increase in phone calls over the past 3 weeks, people wanting to look at houses! There's been a similar increase in home showings in March. So there is a pent up demand out there. Here in Troy though, in February, the median sales price was 170,000, compared to about 220,000 in February, 2008. That's not unusual though for this time of year, as the higher priced homes, that will bring the median sales price up, don't usually come on the market until April, even May. That's why it's best to get your home on the market now, to avoid the rush. Yes, sales prices are down considerably from where they were 3 or 4 years ago, but you're also going to get a nice bargain on the new home you buy!

The last I checked on Thursday March 19, 30 year, fixed rate mortgages were running at about 5.50% with a 720 credit score and no points with a 20% downpayment. With a point, that rate was down to 4.75% with the 720 credit score and 20% downpayment. An FHA 30 year fixed rate mortgage, with a 620 credit score and 3.5% down, was running at 5.75% with no points, 5% with one point. For all of the latest on mortgage rates and for the best advice and service possible, give my pal Dave Tumey of Cambridge Mortgage a call, at 248-526-2210!

Another good point to make on the housing market is, with these rates, you can't miss! People have been buying up foreclosed and bank owned homes and that market is starting to deplete, which means that the time is coming, when buyers will have to stop looking at foreclosures and bank owned properties and start looking at good, solid private owned homes! IT WILL HAPPEN!! Oh, and happy spring!

Good News!!

Well, here it is, mid February and already there's severral pieces of news! First of all, there's a big benefit for first time home buyer, in the new, Economic Stimulus Bill. First of all, let me state that the bill defines a "first time homebuyer" as a person who has not owned a home for at least 3 years. Now for the good part. If you're a "first time homebuyer" and you buy a home between 1/1/2009 and 9/1/2009, you'll receive up to an $8000.00 credit on your federal income taxes. So you'll receive a credit on your taxes of 10% of the purchase price of the home up to $8000.00! In other words, purchase a home worth $150,000 and you'll receive the $8000.00 credit. Purchase a $70,000 home and you'll receive a credit of $7000.00. This is a great way for first time buyers, to get into a home more easily AND the credit does not have to be paid back.

Another piece of good news on the financing front, FHA has increased the size of their loans in our area under the new Economic Stimulus Bill to $297,500. That's an increase in the amount that FHA will finance of about $26,000. So for those thinking about buying a home in the $300,000 range, you can now get FHA financing! We're all still waiting on the analysis of President Obama's home mortgage recovery plan, which was announced in Phoenis this afternoon!!

Finally, you may have heard this on the radio or seen the story on TV or read about it in the newspaper. The company where I am an "independant contractor" (a salesperson working strictly on a commission basis), CENTURY 21 Town & Country, did file for Chapter 11 bankruptcy on Thursday, February 12. This has no affect on me whatsoever, nor does it affect my clients. CENTURY 21 Town & Country has been the top producing firm, in the entire CENTURY 21 worldwide system for 13 consecutive years. Our service and committment to quality is unquestioned. As a company, we will emerge from Chapter 11, even stronger and more viable than before and will continue to serve our clients with unparalled service and quality, for many more years to come!!

We are not the first, large local real estate firm to file for Chapter 11 bankruptcy protection in the past several years, nor will be be the last. It's all a result of the current economic conditions in the real estate industry. Many other companies nationwide have filed for Chapter 11 and have emerged stronger and better companies after their re-organizations. Why just yesterday, Donald "You're fired" Trump, filed for Chapter 11, again! So I look forward to and CENTURY 21 Town & Country looks forward to serving the public and our cherished clients, not only now, but in the weeks, months and years to come!