Michigan Real Estate

How Top Agents Secure Asking Price Reductions

Posted on the November 30th, 2011 under Real Estate,Real Estate Agents by

Real estate training emphasizes the importance of negotiating price reductions on overpriced properties. Yet many clients are often hesitant to agree to price cuts, meaning their property sits on the market untouched by buyers. This scenario is not lucrative for agent or client. So what’s the best strategy for getting price reductions? Successful agents who have enrolled in the best  real estate courses rely on a few tried and true methods. Be honest about the current housing market and visit clients armed with evidence, such as recent comparable sales in the neighborhood. Buyer interest tends to be at its highest in the four weeks after listing a home. Therefore, it’s beneficial to get the pricing right from the start. Appeal to the client’s rational side and let them know that you’re there to help them successfully sell the property. Convince them that you work for them and have their best interest at heart, which is why you’re being truthful with them. By getting them to reduce the price before listing the property, the likelihood of a sale increases. Set a date for a future price reduction and stick to it. If the property is overpriced initially, prepare a document in writing and have the client sign it, that sets certain criteria. For example, if the property is still on the market with little buyer interest after one month, the price will be reduced by an agreed upon percentage. Even if you’re unable to obtain a signature from the client, at least you have paved the way for future discussions. Schedule a visit at your office with the sellers every 45 days. By meeting on your turf you will have more confidence, which in turn instills confidence in the sellers about your judgment and ability to sell the property. Be clear that these regular meetings are to discuss the price of the property and other relevant issues. Make sure that you’re prepared for each meeting with facts and figures to sway any stubborn clients. Holding meetings at your office will also save you time, because the meeting will likely be shorter and you’ll avoid a commute. Call, send e-mails, and mail postcards educating the client on the pitfalls of overpricing a home. Launch your campaign within 30 days of listing the property. Real estate courses teach agents that sales reflect upon their reputation and success. Therefore, you must be proactive and diligent or the home won’t sell. Send them information concerning comparable homes that have recently sold, homes currently listed, and adjustments that are necessary to pique buyers’ interest. This will give them an overview of the importance of the listing price when selling property. If the previous steps don’t influence the client to take action, an ultimatum may be necessary. Send a letter that contains price reduction paperwork and a listing cancellation form. Inform them that unless the price is reduced, the property will not sell and you will no longer be able to continue working with them. Ask them to decide between the two options. A realistic price appeals to the largest pool of qualified buyers. When clients understand the facts and realize the importance market-based listing prices, most will agree to cut the price and eventually sign the price reduction paperwork. Overpricing is the number one seller mistake and as an agent it’s essential to persuade clients to reduce prices or terminate the partnership. Otherwise, the process will be an unnecessary waste of time and money and add an expired listing to your portfolio. Take matters into your own hands and get the price reduction to ensure success.

Rreal estate funk continued in southeast Michigan in March

Posted on the May 16th, 2011 under Real Estate by

Real estate funk continued in southeast Michigan in March, according to figures released Monday by the Farmington Hills-based real estate information provider Realcomp II Ltd.

The exceptions: Macomb County saw a slight uptick in sales, and the city of Detroit saw a rise in its median home sale price.

The number of houses for sale in the area continues to decline, to 32,317 in March compared to 38,420 in March 2010.

And the average number of days a house spent on the market before selling continued to decline, to 97 days, from 102 a year ago. By individual submarket, the sales results were as follows:

City of Detroit: 421 foreclosure sales, down 30.2 percent from 603 a year earlier; 228 non-foreclosure sales, up 13.4 percent from 201 a year earlier; median sale price on foreclosure sales, $7,460, up 13.8 percent from $6,553 a year earlier; median sale price on non-foreclosure sales, $12,000, down 20 percent from $15,000 a year earlier.

Genesee County: 196 foreclosure sales, up 172.2 percent from 72 a year earlier; 184 non-foreclosure sales, down 57 percent from 428 a year earlier; median sale price on foreclosure sales, $26,558, down 58.7 percent from $64,330 a year earlier; median sale price on non-foreclosure sales, $61,350, up 26.8 percent from $48,380 a year earlier.

Huron County: one foreclosure sale, up from none a year earlier; six non-foreclosure sales, up 50 percent from four a year earlier; median sale price on foreclosure sales, $69,000; median sale price on non-foreclosure sales, $67,250, down 7.9 percent from $73,000 a year earlier.

Lapeer County: 49 foreclosure sales, up 25.6 percent from 39 a year earlier; 24 non-foreclosure sales, down 45.5 percent from 44 a year earlier; median sale price on foreclosure sales, $76,217, up marginally from $76,214 a year earlier; median sale price on non-foreclosure sales, $92,500, down 26.7 percent from $126,250 a year earlier.

Livingston County: 87 foreclosure sales, down 11.2 percent from 98 a year earlier; 111 non-foreclosure sales, down 9.8 percent from 123 a year earlier; median sale price on foreclosure sales, $90,000, down 22 percent from $115,450 a year earlier; median sale price on non-foreclosure sales, $163,000, down 1.2 percent from $165,000 a year earlier.

Macomb County: 432 foreclosure sales, up 8 percnet from 400 a year earlier; 480 non-foreclosure sales, up 5 percent from 457 a year earlier; median sale price on foreclosure sales, $41,000, down 25.4 percent from $54,950 a year earlier; median sale price on non-foreclosure sales, $84,750, down 14.4 percent from $99,000 a year earlier.

Oakland County: 613 foreclosure sales, down 4.2 percnet from 640 a year earlier; 803 non-foreclosure sales, down 8.2 percnet from 875 a year earlier; median sale price on foreclsoure sales, $59,000, down 7.8 percent from $64,000 a year earlier; median sale price on non-foreclosure sales, $140,000, down 1.4 percent from $142,000 a year earlier.

Sanilac County: five foreclosure sales, down 16.7 percent from six a year earlier; two non-foreclosure sales, down 80 percent from 10 a year earlier; median sale price on foreclosure sales, $32,000, up 73.4 percen from $18,450 a year earlier; median sale price on non-foreclosure sales, $55,000, up 16.5 percent from $47,200 a year earlier.

St. Clair County: 29 foreclosure sales, down 31 percent from 42 a year earlier; 47 non-foreclosure sales, up 14.6 percent from 41 a year earlier. Median sale price on foreclosure sales, $47,000, down 15.9 percent from $55,875 a year earlier; median sale price on non-foreclosure sales, $95,000, down 20.8 percent from $120,000 a year earlier.

Tuscola County: Eight foreclosure sales, down 20 percnet from 10 a year earlier; four non-foreclosure sales, down 82.6 percent from 23 a year earlier; median sale price on foreclosure sales, $32,827, up 33.7 percent from $24,550 a year earlier; median sale price on non-foreclosure sales, $40,900, down 27.7 percent from $56,600 a year earlier.

Wayne County, excluding Detroit: 499 foreclosure sales, down 12.8 percnet from 687 a year earlier; 661 non-foreclosure sales, down 3.4 percent from 684 a year earlier; median sale price on foreclosure sales, $33,010, down 15.4 percnet from $39,000 a year earlier; median sale price on non-foreclosure sales, $73,000, down 17.5 percent from $88,500 a year earlier.

More at www.realcomp.com.

Condo Short Sale Time Bomb

Posted on the May 16th, 2011 under Real Estate by

The Detroit Free Press recently ran an article outlining how overdue condominium association fees can hold up or derail short sales.

I have encountered this scenario on a number of occasions in my capacity as both real estate broker and real estate attorney.  What really surprised me about the article are comments to the effect that a condo association has no reason to compromise on association fees in the context of a short sale situation.  In my opinion, nothing could be further from the truth.

Section 108(1) of the Michigan Condominium Act clearly provides that association dues constitute a valid lien upon a unit, with priority over other liens except tax liens and sums unpaid on a first mortgage of record.  The association lien may have priority over a first mortgage only if a notice of lien evidencing the unpaid dues is recorded prior to the first mortgage.  MCLA 559.208.

What does this mean, you ask?  It means that if the condo association refuses to compromise on the issue of unpaid assessments in the context of short sale negotiations, it runs the risk of receiving absolutely nothing if the mortgage goes into foreclosure.  This is a huge reason for the asssociation to compromise when it comes to negotiating a short sale.  One other reason for the association to compromise is to get a new dues paying owner into the unit as soon as possible.  While foreclosure proceedings are pending, no dues are being paid, and dues cannot be collected until such time as the bank regains ownership of the property.  This could mean an additional loss of nine or more months of dues revenue to the association.

So while a condo association cannot be required to compromise its lien in the context short sale negotiations, there are valid reasons for it to do so, contrary to the information contained in the Free Press Article.

 

foreclosures in Michigan

Posted on the May 16th, 2011 under Foreclosures,Real Estate by

Back a few years ago, a couple of foreclosure notices posted at the Emmet County Courthouse was the norm.  Nowadays, they might need to put another anchor in the wall so the bulletin board doesn’t come crashing down (or perhaps consider purchasing a bigger bulletin board). What does this mean for you if you are considering the purchase of a home in Emmet or Charlevoix Counties? The number of Northern Michigan properties in foreclosure and bank owned properties on the market can potentially be considered good news for buyers.  High foreclosure rates can result not only in good buys on bank owned properties, but possible short sale opportunities for homes still in foreclosure. However, foreclosure sales can be fraught with pitfalls.  Under Michigan law, bank owned properties are generally not subject to the Michigan Seller Disclosure Act.  Almost all sales are on an “as-is” basis, with no disclosures of any type.  In addition, most banks require that you use their form purchase agreements and addendums, which contain just about every type of waiver and release you could ever imagine.  Many banks (especially the larger out of state lenders) are difficult, if not impossible, to communicate with. As someone who is contemplating the purchase of a Northern Michigan foreclosure property, it is imperative that you have representation from both a licensed real estate professional and a licensed real estate attorney to minimize the risks associated with any such purchase.  People willing to accept a certain degree of risk can be richly rewarded when purchasing a foreclosure property.  However, it is only prudent to minimize that risk wherever and whenever possible. At Buyer’s Broker of Northern Michigan, LLC, we guarantee that we will always represent your interests. Broker/Owner Stefan J. Scholl is also a licensed Northern Michigan real estate attorney.  Our buyer clients receive legal representation in connection with their purchase at no additional charge. If you are considering the purchase of a foreclosure property in Northern Michigan, don’t take on any unnecessary risk.  Give us a call today. Buyer’s Broker of Northern Michigan, LLC Toll Free: (877) 2 BUY NMI or (877) 228-9664 Northern Michigan Property Search

Map search of Petoskey, Michigan homes for sale.

Posted on the May 16th, 2011 under Real Estate by

Buyer’s Broker of Northern Michigan, LLC is very pleased to announce the addition of new interactive mapping capabilities when searching the Northern Michigan MLS for homes. You can now perform a map search of Petoskey, Michigan homes for sale, or show the location of homes or other properties meeting your desired search parameters on a map. A number of clients ask for a mapable search feature on my MLS search page, and am happy to provide it for you. Enjoy!

Allegan Michigan 8 Acres of Vacant Land for Sale

Posted on the May 16th, 2011 under Real Estate by

By the Real Estate Lawyer     Allegan Michigan 8 Acres of Vacant Land for Sale This prime 8 acre parcel in the city of Allegan Michigan is for sale as one parcel with 6 ready-to-build lots, the remainder would need improvements. Or as 7.5 acres, or Lot #48, #44, #42 are available as single lots, which have city water and sewer. An ideal central location, check out our web site for more features and photos of the parcel and lots.