Real Estate Information Archive

It is no secret that it’s been a rough four years for real estate in all pockets of the United States. It seems that no community was immune to the plague of foreclosures and tanking Home values. Cities that were once golden children of the real estate boom became the poster children for the bursting housing bubble. So, it has been a dark era for the real estate sector for several years, but now there’s a light at the end of the tunnel. Ten standout cities are leading the turning tide, hopefully becoming bellwethers for the general recovery and stabilization of the housing market nationwide. Realtor.com has selected these ten cities based on year-over-year improvements in three areas: increasing median home prices, decreasing length of time that houses sit on the market unsold, and decreasing unemployment rates.

This is certainly good for the nation, but doubly good for our community considering the difficulties the Michigan economy has faced in recent years. Number ten on Realtor.com’s list, proudly representing the Midwest, is Ann Arbor, Michigan!

Ann Arbor has seen its home prices climbing steadily. In fact, according to data compiled by Realtor.com in October 2011, the median prices of listed houses went up more than a whopping 8 percent from October of last year. Meanwhile, inventory has gone down, almost a full 25 percent. This means the supply of homes is virtually in balance with the demand—good news for folks trying to sell their homes! The prices at which homes actually sell are also going up steadily, rising nearly 5 percent for the year.

A top-ten ranking as a turnaround town is just the icing on the cake for Ann Arbor, a city already special on many other counts!

Every short sale situation is unique, so it’s impossible to give a one-size-fits-all definition. However, there are some factors common to all of them that we’ll attempt to explain below.

Short sales are a complex process primarily used by those who find themselves in a financially distressed situation and are seeking to avoid foreclosure in order to alleviate supplementary fees and costs to the creditor and borrower. While short sales have consequences to one’s credit standing, the alternative – foreclosure – is worse still.

Short sales in Ann Arbor and elsewhere typically involve Home sales where the current owner is unable to repay loans and/or liens against the property. So, any proceeds resulting from the sale will inevitably be less than the homeowner owes on those loans and/or liens. 

Creditors in a short sale often not only have to take less than what is owed to them via the debt, but they also sanction the termination of their lien. This is not, however, a guarantee that the homeowner will have his or her financial obligations wiped clean, unless each party agrees to those terms.

Perhaps the only sure thing in a short sale is that before creditors agree to a short sale, they will require proof that the borrower’s financial or economic hardship is preventing him or her from paying the deficiency.

A short sale should not be entered into lightly. A central consideration is the credit impact for the seller; the impact can be significant negative damage to the homeowner’s credit report. Nevertheless, in some situations a short sale is unavoidable because the impact of an actual foreclosure is worse.

Buying distressed Ann Arbor Area real estate listings is not for the faint of heart or those wanting responses in 24 hours. Navigating through the minefield of a short sale or foreclosure takes time and dedication to find the right deals.
RealtyTrac recently reported that approximately 25 percent of all US transactions in 2010 involved distressed properties.  Bank-owned (REO) and short-sale transactions will continue to be a major part of the real estate experience this year with short sales on the rise at the expense of foreclosures.  Our present distressed property inventory is about 20% of the total inventory in the Ann Arbor Area. Check back or drop me a message for updates.

1. Is your agent trained to handle this business?
How many closed bank owned or short sales has the agent closed; ask for referrals. Do they have a CDPE (Certified Distressed Property Expert) designation?  selling distressed properties needs skill and dedication. This means the difference between getting a house or not. This means saving thousands of dollars in negotiating or not.

2. Have an attorney review all bank addendums
Many lenders have incorporated language in their contracts that calls for a “blanket indemnification of the lender.” You forfeit your rights, so it is critical that an attorney review all bank documents and indemnification language.

3.  Knowing How to Winterize, and De-Winterize and Access Utilities
If the utilities are on, make sure in the contract that they will remain on for inspections and the house is De-winterized for the whole house inspector. Likewise, with some REO's the buyer may have to pay DTE a turn on charge to get utitilies on.

4.  Know How to Save Money and Protect Yourself 
Make sure contract language states that all contingencies will start when upon receiving signed bank acceptance letter or documents.

Protect yourself by choosing experienced an experienced agent.  I have the CDPE designation and years of experiences and references.  Click here to Find the best foreclosures in Ann Arbor and the rest of Washtenaw, Wayne & Livingston Counties with using this Great Site.

Thinking about listing you Home using the Short Sale Process.  Get started by clicking here

SALES UP: Retail sales rose 0.6 percent in December, the sixth consecutive monthly increase.

YEARLY SALES: For all of 2010, retail sales rose 6.7 percent, the best performance since 1999, although it followed two straight years of falling sales as the country was hit by a severe recession.

2011 OUTLOOK: Economists believe that sales will continue to strengthen in 2011 as consumers start to spend the extra money they will see in their paychecks from the tax cut.

Google has a new beta online application called fusion which allows one to organize data into tables etc online.  Check out this example table providing average Home values for different parts of the country.  Good way of tracking cost of living if moving perhaps?  Click here to see the data.

Dont forget to check out our new real estate search system.  It provides Google aerials, walkscores, zestimates, demographics, school info, distances to popular retailers and more!

Best of luck to you in 2011 !

This is our new MLS listings service packed FULL OF FEATURES!  

If this Page doesn't display full width, then just click on the link above titled "All MLS Listings" for a clean full page demonstration.  One you have a full page, then Add or delete areas by typing in the section bottom left and then hit search at the bottom for your results.  Thanks for your consideration 

In a state suffering from the decline of the auto industry and the loss of manufacturing jobs, Ann Arbor remains an economic and cultural oasis. The city has grown up around the university, which moved to Ann Arbor from Detroit in 1837, shortly after Ann Arbor was founded. A focus on research, technology, arts, and tourism has spared the local economy many of the hardships felt elsewhere in Michigan.

If you live here, it helps to be a Wolverines fan. The roar from Michigan Stadium—which seats more than 100,000 and is known as the Carnegie Hall of sports—resounds through town on football Saturdays in the fall. The games always sell out, drawing fans from around the country. If sports aren't your thing, there are still plenty of other activities, many associated with the university: several museums and galleries, an arboretum, an annual arts fair, an orchestra, and local opera and ballet companies.

The university employs about 16,000 people from all over the Detroit area, plus another 12,000 at the University of Michigan Medical Center. Private-sector employers add to a vibrant white-collar economy largely based on research and technology. Automakers like General Motors and Toyota account for some research jobs; the National Oceanic and Atmospheric Administration and companies like General Dynamics and Google provide others. Longtime local companies include Domino's Pizza and Borders.

Ann Arbor has cold, snowy winters, and moisture from nearby Lake Huron and Lake Erie contributes to a high proportion of cloudy days. But summers tend to be warm and comfortable, with highs in the low 70s and nighttime temps in the 50s or 60s. And Ann Arbor—known as "Tree Town"—is one of the greenest, most densely forested residential areas in America.

If you can tolerate cold winters and can afford the slightly above average cost of living, Ann Arbor is a dynamic retirement spot with year-round enticements. Detroit's metropolitan airport is about 40 miles away, with nonstop or one-stop jet service to most big cities, so grandkids can visit—or you can easily flee to the south in the winter.

In addition to the University of Michigan, there are several smaller colleges nearby, including Cleary, Concordia, and Eastern Michigan. Big Ten rival Michigan State is about 65 miles away, in East Lansing.

The University of Michigan Medical Center is one of the top hospitals in the country. There's also a VA hospital in Ann Arbor, and St. Joseph Mercy Hospital is just a few miles away (with some facilities in Ann Arbor itself).

After the University of Michigan, the biggest employers are auto supplier Visteon, General Motors, St. Joseph Mercy Hospital, Eastern Michigan University, and Borders. Drug aker Pfizer has employed several thousand in the area but is closing its operation.

The median Home price in 2008 was about $206,000, higher than in many surrounding areas. But consider that a sign of a relatively healthy economy: Prices in 2008 fell by a modest 6 percent, a small decline compared with other areas. Much cheaper homes are available in surrounding communities, where builders binged during the housing boom. In 2009 and 2010 both nearby Saline and Ann Arbor realty prices have gone up an average of 3% per year.  

To get real time foreclosure, short sale and other realty listings click here.

Anyone can be a real estate investor in todays market.  I have many clients who are investing in homes prices between 15-80K who are Buying to earn income.  Current investors should note the recent underwriting change dropping the 90 day wait for flip type sales to buyers using FHA loans. (see below) 

For newcomers, generally the plan is to flip the property.  In other words you buy asset, make the necessary repairs and/or upgrades and then place it back on the market for sale.  Most of the time in order to replenish capital an investors first choice is usually to sell it for cash or buyer financing ie:the buyer gets a mortgage and pays the owner in full.  Second option.... the seller enters into a land contract with terms above market interest rate after receiving a downpayment from the buyer. The terms often will call for a balloon payment after three years at which time the buyer will then seek a mortgage to cash out the seller.  Often the buyer is not in a position to get a mortgage right now and the seller can chose this type of transaction because perhaps the property location or market conditions in the subdivision didn't yield a cash buyer right away.  The other option for the seller is to Rent the property out until which time as they may decide to sell it.   All three choices yield a nice return on investment.

New and current investors should note  ... short sale and REO flipping 
are becoming more and more accepted by the government and major 
lending institutions.  This is evidenced, among other things, 
by Freddie Mac's recent bulletins, updated credit policies by 
major lenders allowing for C buyer financing, and revised title bulletins 
stating that the C purchase price does not need to be revealed 
to the A lender as long as certain disclosures are made. 

Last Friday the FHA has rescinded its 90 anti-flipping rule and will, 
for a period of 1 year, allow FHA buyers to obtain loans 
on properties that have been recently purchased by investors 
who intend to flip them for a profit.

This "green light" by FHA means that if you've been on the 
sidelines of property flipping, you need to educate yourself 
as soon as possible, because investors will be coming on 
strong for 2010 given this latest news. 

contact me to discuss this further.  You can also stop by this web site to get easy to use investment tools etc.  www.A2Realty.info or stop by our MLS access and custom report web site at www.shelterquest1.com for easy and current review of the latest listings.   

Tom can be reached on his cell phone at 734-516-2000 to answer any additional questions that you may have.  

By MITCH ALBOM • FREE PRESS COLUMNIST • December 13, 2008

We have grease on our hands.

You have blood.

Kill the car, kill the country. History will show that when America was on its knees, a handful of lawmakers tried to cut off its feet. And blame the workers. How suddenly did the workers — a small percentage of a car’s cost — become justification for crushing an industry?

And when did Detroit become the symbol of economic dysfunction? Are you kidding? Have you looked in the mirror lately, Washington?

In a world where banks hemorrhaged trillions in a high-priced gamble called credit derivative swaps that YOU failed to regulate, how on earth do WE need to be punished? In a bailout era where you shoveled billions, with no demands, to banks and financial firms, why do WE need to be schooled on how to run a business?

Who is more dysfunctional in business than YOU? Who blows more money? Who wastes more trillions on favors, payback and pork?

At least in the auto industry, if folks don’t like what you make, they don’t have to buy it. In government, even your worst mistakes, we have to live with.

And now Detroit should die with this?

In bed with the foreign automakers

Kill the car, kill the country. Sen. Richard Shelby, Sen. Bob Corker, Sen. Mitch McConnell, your names will not be forgotten. It’s amazing how you pretend to speak for America when you are only watching out for your political party, which would love to cripple unions, and your states, which house foreign auto plants.

Corker, you’ve got Nissan there and Volkswagen coming. Shelby, you’ve got Hyundai, Honda, Mercedes-Benz and — like McConnell — Toyota. Oh, don’t kid yourself. They didn’t come because you earned their business, a subject on which you enjoy lecturing the Detroit Three. No, they came because you threw billions in state tax breaks to lure them.

And now you want those foreign companies, which you lured, and which get help from their governments, to dictate to American workers how much they should be paid? Tell you what. You’re so fond of the foreign model, why don’t you do what Japanese ministers do when they screw up the country’s finances?

They cut their salaries.

Or they resign in shame.

When was the last time a U.S. senator resigned over a failed policy?

Yet you want to fire Rick Wagoner?

Who are you people?

More money for the lords of Wall Street

There ought to be a law — against the hypocrisy our government has demonstrated. The speed with which wheelbarrows of money were dumped on Wall Street versus the slow noose hung on the auto companies’ necks is reprehensible. Some of those same banks we bailed out are now saying they won’t extend credit to auto dealers. Wasn’t that why we gave them the money? To loosen credit?

Where’s your tight grip on those funds, senators? Where’s your micromanaging of the wages in banking? Or do you just enjoy having your hands around blue-collared throats?

No matter what the president does, history will not forget this: At our nation’s most uncertain hour, you senators stood ready to plunge hundreds of thousands of American families into oblivion. Leave them unemployed, with no health care, on public assistance. And you were willing to put our nation’s security at risk — by squashing the manufacturing base we must have in times of war.

And why? So you could stand on some phony principle? Crush a union? Play to your base? How is our nation better off today now that you kept $14 billion in the treasury? Are you going to balance the budget with that?

Don’t make us laugh.

Kill the car, kill the country. You tried to slam a stake into our chest; you don’t realize how close you are to the nation’s heart. Shame on your pettiness. Shame on your hypocrisy. This is how lawmakers behave two weeks before Christmas? Honestly. What has become of this country?

In our current Buyer’s market, the type of Home that is selling has shifted from the traditional profile of the past 20 years. It is therefore important to understand where your home fits into the overall market activity. Although traditional owner occupied homes make up a majority of the current homes available for sale, the majority of the homes being sold are bank owned or financial hardship related sales. This puts downward pressure on values and causes pricing to take a more significant roll in marketing. As a traditional seller, in order to stand out in a crowded field, (made even smaller by the Buyer’s focus on bank owned) flexibility on pricing, terms, Lease vs. sale, or lease to own becomes imperative.

Click here for an interesting graphic showing these changes.

HOPE for Homeowners, a federal program to allow the replacement of up to $300 billion in underwater U.S. mortgages with federally backed FHA financing, began accepting applications under a legislatively authorized expansion.
 
To qualify, borrowers must be spending more than 31 percent of their income on mortgage payments. Loans made this year are excluded, except for those completed on Jan 1. Borrowers must have made six months of payments on their loans.
 
Lenders must agree to participate and erase 10 percent of the Home's current value before the government will guarantee the mortgage. A concern among lenders is that investors in mortgage securities must take an immediate loss and can't recoup their lost money if home prices turn upward again.
 
The program is a "helpful step forward" in stabilizing the housing market and will help keep many families in their homes but it is not a cure-all, said Steve Preston, secretary of the U.S. Department of Housing and Urban Development, which administers the program.
 
Troubled borrowers should contact their lenders.

If you need help getting your property listed and sold, go to this link to get started.