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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Selling Your House in a Down Real Estate Market

Tip #2?  Stage it! Condition and presentation still matter, even if the listing price is low.  “Price gets you interest, Staging gets you offers.”  Mr. Keller is a wise man!

No one that I have spoken to, however, agrees with Tip #5 which is “Be there.  No one can answer questions about the schools and neighborhood like the seller.”    Most feel that having homeowners present makes for an uncomfortable visit.

Written by Marianne Sweet
Home Sweet Home Staging, (586) 212-8400
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Take it away Cindy …

“There is so much information on home staging, that home sellers are on overload.  With advice coming from all kinds of sources and areas of the country.  Yes, it is confusing, where do you start?   If you watch tv, you may get the impression you can have your home staged for under $2000.  Or another show may stage a home for around $20,000.   Big difference!   Another show has strangers coming to your house picking it apart, to the point that you’re thinking, no way am I going to let someone do that to my home.  You can read articles or books on the internet from people that may be experts or just people with an opinion.  You can also read a book on ”How to Cut Hair”, but would you actually trust yourself to cut your hair or someone else’s?  I wouldn’t!  So, where do you start?  Sure, you have questions … who wouldn’t?

Here are a few questions home sellers have when thinking about staging their homes.

1) How much does it cost? Reasonable question … as a matter of fact it’s the #1 question.  It’s the big mystery.  This is why.  I wish I could say every home stager could give you a standard answer, but we can’t.  Every stager should be their own business entity, and provide different services.  Some charge an hourly rate, by the square foot, per room, a percentage of the list price or a flat fee.  As every property is different, we really need to see the home to assess it and give you a solid number.  Some stagers can estimate it, but shouldn’t be held to that number until the property is viewed.  There are too many variables that go into it. Is is vacant? Do furniture and accessories need to be brought in?  Or is it occupied, and you just need a redesign of existing furnishings? These are just a couple of examples.

2) Who pays for the staging? The 2nd most popular question.  The home seller is ultimately responsible for staging services.

3) Why doesn’t my Realtor pay for home staging, they are making the commission? Again, ultimately a homeowner is responsible for staging costs.  Some, but not all real estate agents will pay for a Home Staging Consultation, as a value-added service, but the actual costs associated with staging (furniture rental, actual hands-on staging) is paid for by the home seller.  It is not the responsibility of a real estate agent to pay for home staging costs.

4) Can I pay at closing? This is up to the stager.  Most, do not do this as we do not know if a property will be on the market for 1 day or 3 months.  Again, we all do it a little differently, some ask for 1/2 upfront, and some charge a monthly fee.

5) What do you do? Again, each home stager is their own entity.  Some offer redesigns only, some offer accessories only, and some offer furniture and accessories.  Some don’t have the inventory to do a vacant home so they will have to use a third party source, and some use their own inventory.  Different services can be offered, such as paint color consultations, personal shopping, organizing, curb appeal, recommendations on cost-effective cosmetic changes such as flooring, counters, lights, fixtures, etc.  The ultimate goal is to help a seller get their home sold faster and in the most cost effective manner.

6) How long does it take? It depends on how much you want done and to what extent.  It can take a few hours or a few days, or maybe longer if there are some cosmetic changes that need to be taken care of.

7) When should I have my home staged? As soon as you decide to sell.  Call a professional home stager and get a Home Staging Consultation.  Once necessary recommendations are completed from your stager’s list, your house is ready to be listed.  Don’t make the mistake of putting up that “For Sale” sign in the front yard before your home is ready.  The first 20 days a home is listed will be when it will get the most interest and traffic.  Make sure your house is show ready.”

Written by Marianne Sweet
Home Sweet Home Staging, (586) 212-8400
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While Mr. Nash makes some very valid observations, I must take issue with a few points that he makes, namely #5 on the “Out” list.

Mr. Nash states that home staging, “an over-used low cost marketing band-aid for vacant or occupied homes” is out. The only thing I agree with in that statement is “low cost”, which is certainly true compared to a price reduction. He goes on to say “Buyers have said enough of the non-professional usage of assorted leftover props placed around a for-sale home to make it supposedly homey. Buyers say, market it as it is and clear out the tired silk flowers and stale potpourri.” I will agree that there are less-than-fabulous attempts at staging out there, but professional home staging is proven to reduce DOM. Can any marketing tool that works truly be “out”?

Another point that frightens me in this article is the notion that “Obama-era paint colors” will be in vogue. Trust me, the “bright optimistic blues and radiant golds” that are mentioned will not help sell a house. Neutral is “in”, no matter who resides in the White House.

2009 should prove to be an interesting year for real estate, and many predictions in this article may be on-point. Let the professionals in your particular market advise you, as they know the real “ins and outs”.

Written by Marianne Sweet
Home Sweet Home Staging, (586) 212-8400
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A few big banks agreed to stop foreclosing until after the new year, so the January numbers could bounce significantly, especially with all of the recent layoffs across the country.

Chart from Realtytrac.com

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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Would you be surprised to know that a house in Metro Detroit sold for nearly $10,000,000 this summer?  That’s a whole lotta cash, by just about anyone’s standards.  According to information from Realcomp II, 21000 Turnberry Lane in Novi, sold for $9,800,000 in August.  It wasn’t even officially on the market when it sold.

The Metro Detroit area had a total of 6 sales so far in 2008 that had listing prices over $4,000,000 when they sold.  I noticed that SKBK Sotheby’s was involved in half of those sales, something not approached by any other brokerage.  Our presence in the high end is very firmly established.

The most expensive house on the market today is 730 Vaughan Road in Bloomfield Hills.  I have written about the house before. When we last checked in on it in March 2008, the price was at $9,900,000. Today it is at $8,690,000.

I find it interesting to note that there were twice as many homes sold in 2008 over $4m as there were in 2007.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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Home sales again increased in both Oakland and Macomb counties compared to figures from last year. In Oakland, sales rose 23 percent; in Macomb, they rose 26 percent.

Affordability helped make Southfield Oakland’s top-selling municipality: the median sale price there was $56,000, boosting the year-to-year increase 75 percent.

Other Oakland municipalities with 15 or more sales that experienced year-to-year increases in October sales included:

* Commerce Township, up 46 percent
* Bloomfield Township, up 44 percent
* Pontiac, up 43 percent

Macomb’s Eastpointe also benefited from affordable housing, with a median sale price of $45,000 that undoubtedly helped spur a 97 percent increase in sales, year-to-year.

Other Macomb municipalities with 10 or more sales that experienced year-to-year increases in October sales included:

* Roseville, up 46 percent
* Macomb Township, up 40 percent
* Sterling Heights, up 31 percent

You can get the Oakland County October Sales numbers here.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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I decided to create a pdf file so that readers could take a look at these sales themselves. Statistics about Birmingham home prices are always skewed by the high number of $1 sales, deeds that are recorded without the actual sales price. So far this year, I counted 48 $1 sales. So basically over 20% of the home sales data is incorrect or hidden.

Unfortunately, this leads to huge distortions in the statistics we receive from our MLS and our board of Realtors. These statistics are most skewed for Birmingham and Bloomfield Hills, where the practice is most common. The numbers are consistently skewed, so we continue to use them as we have nothing better to offer.

This PDF contains clean data about Birmingham MI home sales.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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We’ve highlighted the report for markets that we serve, like Birmingham, Bloomfield Hills, Royal Oak and Troy.

In the county as a whole, sales were up by 21.12% year to year, with the number of listings down by 12.82% and sales volume down by 5.5%. The falling number of listings, if broader economic conditions were more positive, would typically bode well for stabilization of prices. Obviously with today’s economic uncertainty, it is challenging to predict future prices, and it seems likely that downward pressure on prices will continue until Metro Detroit begins to create jobs. There, I said it out loud.

A few key stats from some local municipalities:

All is not dismal in these numbers. I think far more homes are being sold than people tend to believe. Dmitry and I continue to have our record best year, representing buyers and sellers in Oakland County. If you aren’t seriouslycommitted to selling your home, it should not be on the market. If you are a buyer, Oakland County is your oyster, with some exceptional deals to be had.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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Fannie and Freddie are the most important conduits involved in mortgage lending. They purchase or guarantee more than one half of all mortgage loans made in the U.S. – almost $5 trillion. Lack of confidence in these entities this year has resulted in a steep decline in demand for the mortgage backed securities (MBS) created when mortgage loans are made. This weak demand has caused mortgage rates to remain higher than they otherwise could be and higher mortgage rates are not helping the ailing housing market.

This year we have also seen a huge increase in fees that Fannie and Freddie have introduced to offset losses. A whole new rate structure was introduced whereby anyone with a credit score under 720 was charged a higher rate and the rate kept going up the closer you got to a 620 score. In the past, any borrower who was approvable within conventional guidelines got the same rate regardless of credit score. There is some hope that the government will reduce or eliminate these fees allowing more borrowers to be approved at lower rates.

Overall, this move should help to reduce interest rates on conventional loans and attract more buyers into the housing market. I can tell you it’s already working in terms of lowering mortgage rates as the 30 Year Fixed rate declined from 6.5% on Friday to 6.0% today. That’s over a $65 decrease in the monthly payment on a $200,000 mortgage!

The purpose behind this takeover is to improve confidence among investors who buy MBS, to ensure the continued viability of the U.S. mortgage market and to help ease the worst decline in home prices since the Great Depression. Let’s hope it succeeds!

Written by Ken Mascia
Prime Capital Mortgage, 248.644.1200
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Spec building in Birmingham, and throughout Oakland County, has almost come to a stop.  We are still seeing a few spec homes going up around town, but not many at all.  Most builders are holding off starting new projects, with a few exceptions.

One prominent local builder told me that other builders are having trouble getting lines of credit for construction.  Many of those who have access to cash are risk averse, and not building specs, reserving their work. Anyone who has lived here more than a few years will notice that there are less construction sites throughout the city.

In some ways, this is a good thing. It will help some resale home sellers who might have lost a buyer to new construction, but did not have that option. As the inventory of resale homes diminishes, that can put supply more in balance with demand. Eventually prices will start to head back up, and builders will start building again.

Personally, if I were a savvy builder, I would be looking to acquire land, even if I did not plan to build this year. There are some super values out there, and if the property is rentable it can have a decent positive cash flow for a while.

Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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We started the summer with over 30 listings.  Most of those homes have new owners now.  Some sold in a few days.  One half million dollar Birmingham home sold in less than a week at full price. A few more will close in August.  A few unsold listings remain, and that leaves us with those to focus on now.

But we are also at the point where we have the capacity to begin helping more sellers (and buyers) reach their goals, whether it be moving up, moving down or moving out (we hope that is not the case).

I have heard plenty of groaning Realtors around Birmingham, who are saying they are sick of this market, and tired of going without paychecks.  I am not unsympathetic.  However, the most important message I can leave sellers with right now is that HOMES ARE SELLING!  Sales are actually up (in units) throughout Metro Detroit. There are buyers out there who want to buy homes like yours.

Today I had a call from a reporter from Money Magazine.  She asked what we are doing to get homes sold.  I would say there are a couple of things that have proven successful for us:

• “Right pricing” from the start, which means carefully looking at the comps and trends in the market and helping our sellers to understand the market like we understand it.
• Innovative Internet marketing for maximum exposure.
• Staging.  Marianne Sweet, a contributor here on miOaklandCounty.com, has shown us the light and done wonders with our listings.
• The Birmingham Bloomfield Realtor Network, our tight knit group of 13 top producing agents from competing offices.  We meet to create marketing events for our listings and share ideas in a very collaborative manner.
• We have a strong brokerage behind us.  SKBK Sotheby’s International Realty has provided us with great support and with great marketing for our sellers.

I don’t pretend that this market is not without challenges.  Most brokers will say they have never seen anything like it.  Yet I see plenty of hope and success out there.  I want you to see it too.

P.S.  We need more listings :-)

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