Real Estate in Birmingham, Bloomfield Hills, Beverly Hills, Royal Oak, Troy and Oakland County Michigan

Extension of the home buyers tax credit was iffy, with it looking uncertain up until the final days before the credit was due to expire. Many buyers and sellers were sitting by nervously, with lender backlogs and other complications preventing them from making it to the closing table in time for the credit.  Approximately 6,400 home buyers in Michigan alone would have been negatively impacted if the tax credit extension had not been passed.

Senate and House vote to extend tax credit to home buyersThe Senate and House have approved a plan to give home buyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring. It still has to be signed by the President. The consensus is that he will sign it today.

The move by Senate Majority Leader Harry Reid (D-Nev.) would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to close the sale.

The proposal would only allow people who have signed contracts to finish later. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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Relief might be on the way for harried home buyers, mortgage officers and title companies who are rushing overtime to make sure they close  before June 30th so that their home purchases qualify for the $6,500 and $8,000 tax credits that were offered on purchase agreements signed by April 30th.

Our market saw a frenzy of activity in March and April as buyers rushed to find homes and get them under contract.  Multiple offers returned to the market and sellers delighted in quick sales.  Fortunately, the market has remained at a very good pace even after the credit expired, and the uptick seems to be sustaining.

ANDREW TAYLOR
The Associated Press

(AP) — WASHINGTON – The Senate has approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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The tax credit that gave new home buyers and move up home buyers an opportunity to receive $8K or $6.5k, respectively certainly had a positive impact on the market, especially in the month of April, as buyers rushed to get in under the deadline.  Multiple offers were commonplace and anxious buyers often bid up homes for well over asking price.

Everyone wondered what would happen in the month of May, once the incentives were gone.  I am thrilled to report to you that our company, SKBK Sotheby’s International Realty, had it’s best month in 5 years, putting approximately $32,000,000 in accepted new business on the books.  Our market extends well beyond Birmingham and Bloomfield, and sales from neighboring communities like Royal Oak, Troy, Beverly Hills and surrounding Oakland County municipalities are always a major part of our business.

A number of factors contribute to this. 

• Inventory remains low, well below previous years and sellers have become more accepting of current market valuations as they try to sell their homes.
• Interest rates remain low, attracting buyers to the market.
• Consumer confidence is rebounding.  Investors are picking up great deals, and home buyers who intend to occupy are able to do the same.

We are working with buyers who consiously decided to wait until AFTER the tax credit to avoid the rush and the competition.  Those buyers are now in a position that is slightly less competitive than what we were seeing at the end of April, though we are still seeing situations with multiple offers and homes selling quickly.  In fact, two of our listings, one in Birmingham and one in Bloomfield Village, both sold within their first 10 days of listing. 

I am optimistic that our market has taken a turn and is becoming more balanced and vibrant once again.

Photo by Patricia Drury

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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Anyone who has sold a house has been through it … the caller says “We’re close by and would like to see the house. Can we come RIGHT NOW?” The seller hangs up and goes in to full-on panic mode! Where to start cleaning?

From the online pages of Real Simple Magazine (www.realsimple.com), a checklist to get your bathroom in shape QUICK! Make sure you have cleaning supplies on hand at all times so you don’t have to spend valuable time searching for them.

# Minute 1: Drop two Alka-Seltzer tablets into the toilet bowl and let the bubbles do their magic. Toss used towels in a pile outside the door; stash odds and ends (brushes, hair dryer) in drawers or a pretty basket. Get rid of melty soap bars and lingering chips.

# Minute 2: With a damp microfiber cloth, swipe cobwebs from ceiling corners (stick the cloth on the end of a broom to reach) and dust door frames, tile ledges, moldings, shelves, framed art, and sills. Rinse and wring. Do the light switch and the soap dish with a disinfecting wipe.

# Minute 3: Spray mirrors with glass cleaner and rub in circles with the cloth. Then run a wipe over the vanity and the sink to pick up rogue hairs, powder, and toothpaste. (Clorox brand is safe for most hard surfaces, including marble.) Grab a new wipe for the faucet handles, the wall behind the faucet, and any light fixtures.

# Minute 4: With a fresh wipe, clean the top of the toilet tank, the flusher handle, and the lid. Use a new wipe for the top and the bottom of the seat and the lip of the bowl—in that order. Take one more wipe and do the base of the toilet and the floor around it. Next, swish water around the inside of the bowl with a toilet brush and flush. Using (you guessed it) another wipe, clean the vents and the baseboards.

# Minute 5: Move the wastebasket to just outside the door. Set out clean hand towels and a roll of toilet paper. With a couple of wipes, tackle the floor. Clean dust and hair from every corner, starting with the corner farthest from the door and backing out. Empty the trash and you’re done.

Author’s note: I personally think you can reduce the number of wipes by half, but I’m thrifty like that!

Written by Marianne Sweet
Home Sweet Home Staging, (586) 212-8400
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Last week a spectacular home in Birmingham hit the market at a list price of $6,395,000, making it the most expensive residence currently on the market in the City of Birmingham.  Our company, SKBK Sotheby’s International Realty, has been entrusted to market this exceptional home.

400 Arlington was originally built for Carole Ilitch Trepeck and her then husband David Trepeck, who founded Uptown Entertainment, the company that runs Birmingham’s two movie theaters, Birmingham 8 and The Palladium.  Uptown Entertainment is a subsidiary of Ilitch Holdings (as in Little Caesers, Detroit Tigers, Detroit Red Wings and so on…)   The Trepecks decided to move to California and the home was sold to it’s current owners in 2002.

The 11,000 square foot home sits on 2.25 acres of immaculately manicured gardens with a magnificent swimming pool.  There are 6 bedroom suites, 8 full baths and 2 half baths.   A guest house/private apartment with a full kitchen and sitting area is perched over the 4 car garage. The lower level features a wine cellar, workout room and additional living space.    The main floor features a separate service kitchen for parties and events.  Public records show that the home’s 2009 property taxes were $85,314.

The house was very well received by local agents who toured it for the first time this week.  We enjoyed listening to oohs and ahhhs as agents explored the home and declared it one of the finest on the market today.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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February sales for residential properties in Oakland County increased 25 percent over the same month last year; in Macomb County, the increase was 6 percent.

Listings decreased in both counties (by 15 percent in Oakland and 6 percent in Macomb), but while Oakland posted a sales volume increase of 45 percent, Macomb’s sales volume dipped 4 percent.

The following Oakland County municipalities* experienced the largest year-to-year (February 2009 to February 2010) increases in sales:

• Royal Oak, up 119 percent; sales volume increased 135 percent to $8 million, from $3.4 million
• Bloomfield Twp., up 95 percent; sales volume increased 128 percent to $11.4 million, from $5 million
• Independence Twp., up 94 percent; sales volume increased 154 percent to $6.3 million, from $2.5 million

Oakland municipalities that experienced a sales decrease included Hazel Park (down 18 percent), Pontiac (down 17 percent) and Southfield (down 13 percent).

Information on all municipalities can be obtained here.

Republished from Metropolitan Consolidated Association of Realtors

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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The good news is that, in my little corner of the world, real estate sales have really picked up this year! No doubt that some this activity can be attributed to the Home Buyer Tax Credit which is scheduled to expire on April 30th – and I sure hope that congress decides to extend that so we can keep the momentum going. From what I am seeing the Real Estate market in Southeastern Michigan has really stabilized with inventory way down and sales way up. Real Comp’s recent statistics for Oakland County showed sales up 20+ percent over last year and inventories down 25 percent! Based on the law of supply and demand this should create a much more stable base for prices this year and this is evidenced by the fact that we are seeing final sales prices that are generally within 5% of asking price on most deals.

Another factor contributing positively to the market is low mortgage rates with rates this year running between 4.875% and 5.25% on 30 Year Fixed Rate loans for well qualified buyers. Rates have stayed low not because the Federal Reserve has kept the Federal Funds rate at close to zero, but because news on inflationary pressures has been non-existent. Inflation, or the fear of it, is what causes mortgage rates to rise. This month both the Consumer Price Index (CPI) and the Producer Price Index (PPI), which are both the preeminent inflation indicators, were reported as pretty much flat, meaning that there is little to no upward pressure on the prices of goods and services in the U.S. (right now). As long as that remains true interest rates will stay low.

Arguably the most important factor which will affect interest rates over the coming months is excessive government spending. Yesterday, the government sold a record $42 billion (yes billion) dollars of 5 Year Notes and the demand for this new debt has been low because there is a limit as to how much U.S. debt the world is willing to hold! Interest rates on these bonds are pushed higher in the marketplace in order to encourage buyers to act and this increase in treasury borrowing rates will bleed into all other interest rates in our economy. The government must stop the record deficit spending or it is going to have serious consequences. As of right now, interest rates are still holding at a very very low position.

So, here in Bloomfield Hills, Michigan, the economy and real estate are looking a bit brighter. The big auto makers which dominate our local economy have made major strides in improving their long term positions and to ensure their survival – maybe even to start to prosper again. Continued strength in the economy is directly tied to consumer sentiment and it seems that we consumers are feeling a bit better and opening up our wallets just a little bit wider. Let’s all think positively and encourage those around us to do the same and then we’ll see the current trend take hold. This in turn will increase business profits and then business will hire more employees and things will just keep getting better. The economy is really just a state of mind – our state of mind!

Written by Ken Mascia
Prime Capital Mortgage, 248.644.1200
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If you are still on the fence about the value of professionally staging a home for sale, here is another benefit to consider:  staged properties command higher appraisals.

Certified Residential Appraiser Linda Shurtliff, owner of Troy-based Reliable Residential Appraisals, LLC agrees.  “A staged home has much more appeal than an unstaged home.  A staged home has no clutter, very few personal items and appears clean and welcoming.  A home that is well-maintained, has good functional utility including strategic staging of furniture, has fresh paint and is clean will appraise higher than one that’s not.”

Shurtliff, who has been appraising properties for 18 years and has owned her firm for 14 of those, has seen her share of houses for sale.  She knows that factors other than comps affect the final value.  “In doing an appraisal on a house, the appraiser estimates the current market value as of the day of inspection, but we also look at the house as a prospective buyer.  Everything is considered in an appraisal … how well it’s maintained, the quality of the cabinets, flooring, lighting, etc.”  Since the main goal of home staging is to present a home looking it’s very best, it follows that staging will address all of these factors and affect the appraisal.

“If something is really offensive, it forces us to look at lowering the range of value” according to Robert Vacanti, president of Northeastern Appraisal Associates.

Samantha Maziarz Christmann, Consumer Reporter for The Buffalo News offers the following tips:

• Set the stage. Make the house look as nice as you can, as if you were staging it for a buyer. Making the home as pleasant as possible can help give the appraiser a subconscious nudge in your favor.

• Got wild taste? You might want to consider toning it down for the appraiser.

• Completing needed repairs won’t increase the value of your home, (but) neglecting repairs and maintenance will decrease the value.

A favorable appraisal is in everyone’s best interest.  The seller is justified in listing at a higher price point, the buyer feels confident that they have paid fair market value for the house, the mortgage lender will be more likely to approve the loan to the qualified buyer, and the listing agent makes the sale!

Many great outcomes follow from a small investment in staging.  Shurtliff sums up her belief in home staging:  “It’s one very good thing a homeowner can do to help make their home stand out from the rest.  They need to be able to detach themselves from their home, especially in today’s market, and let the professionals market it.”

Linda Shurtliff, CRA can be reached at (248) 689-3489.

Written by Marianne Sweet
Home Sweet Home Staging, (586) 212-8400
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Love this post from The Onion, simply because it is hilarious. With a title like I Wasn’t Going To Buy This House Until I Saw The Realtor’s Headshot On The Sign, how could it not have some delicious morsels to offer up?

I’ve never understood lots of things about the way we Realtors market ourselves, and, apparently, lots of consumers don’t either.

Photos on our business cards?

Headshots on yard signs?

Faces on grocery carts?

I don’t get it, but the way the guy at the Onion says it is a lot funnier!

Do I need to make our picture on the blog a little bigger?

photo courtesy of Never Was an Arrow II

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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Over the last few years, we have helped sellers save a bit of cash on transfer tax. The state legislature “rebranded” this law this week, but the savings to home sellers remained in place. We received the following from the Michigan Association of Realtors, outlining the criteria of qualifying for the transfer tax break:

Sellers may be exempt from paying the State transfer tax if the following criteria have been met:

The title company actually collects less transfer tax at close, so it is important for a seller to make the title company aware of their eligibility.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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Dmitry and I have been selling Oakland County real estate since 2001, and some Realtor’s would say that we have never never seen a “good” market, though we would disagree. A good market is what you make of the market you are in, afterall. I can’t control the market, but I can control how I respond to it, by seizing the opportunities that exist. Nonetheless, we’ve spent many evenings over the last 9 years telling people that their homes are worth less than they thought, and that certainly never gets any easier, even as we become more practiced in our delivery.

I rarely talk about specific clients out of respect for their privacy, but since my childhood friend, and Katya’s pediatrician, Dr. Molly O’Shea, blogged about her recent home hunting journey, I feel OK about this time. Helping people find a home is an honor and we love being part of that process.  It is wonderful to see Molly and her children “build” a new home together, and to be part of their new beginnings.  Molly and the kids will make that Birmingham house into a home, alive with love and and the sounds of laughter, crashing Lego’s, clacking knitting needles and the ding of the kitchen timer signalling another birthday cake needs to come out of the oven.

There are happy sellers out there right now too, though you Metro Detroiters might be surprised to hear that! We helped many sellers to shed themselves of a house last year, and our personal listing inventory is at the lowest it has been at in ages. One couple was so happy a few weeks ago, that they sent me some lovely gifts from Tiffany! Who is not excited when they get a gift in a signature blue Tiffany box?

There are stats to back up the “good”.  Yesterday the Freep reported that Oakland County is the bright spot in Metro Detroit housing.  Inventory is at a low, and prices have stablized.  Birmingham is a local standout, bucking the trend, as it is seeing a modest increase in value! The decrease in inventory has created a lot of demand for GOOD houses.  Not everybody wants a foreclosure.  Just last week a group of agents I was with was lamenting about how challenging it is right now because there is not a huge supply of GOOD houses out there right now in certain segments of the market.

I have to head back out and make good.  Happy St. Patrick’s day to all!

http://www.flickr.com/photos/davepeckens/ / CC BY-NC 2.0  Thanks to Ben Peckens for the wonderful artwork!

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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