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Council Approves Rezoning of East Beverly Hills

After years of study and discussion, a plan to rezone Beverly Hills, particularly the East side of the village, was recently approved.

The proposal had passionate opposition. I attended a Village council meeting at Groves High School where the police were summoned by the council president to remove a member of the audience. Personal attacks were launched against council members. The opposition seemed successful in propagating fear that somehow Beverly Hills would turn into a developer’s paradise, with builders tearing down homes to squeeze in more homes. Given our current real estate market, I can safely say that the risk of developers buying up a number of lots to squeeze in one more house is just about ZERO. First of all, our land is too expensive. Second, there are currently inexpensive building sites available in neighboring Birmingham, where the finished home will garner a higher price.

People were upset that the professional planner called our 1950′s ranches obsolete housing stock. I appreciate that pride in our community. But the fact is that nobody would build a home today like these homes were built. Today people want larger closets, master suites, bigger kitchens and baths and other amenities that were not required by the original owners of these homes.

Regardless, the intent of this legislation was not to encourage redevelopment, but rather to resolve the fact that nearly 80% of the homes on the east side did not conform with current zoning rules. In order to do many simple additions to these homes, the owners must appear before the zoning board of appeals and ask for a variance simply because the zoning ordinance has been out of sync for decades. To me, that is unfair.

I applaud the council for moving forward on rezoning.

The new ordinance and map are here.

[tags]beverly hills zoning, east beverly hills, beverly hills michigan[/tags]

Oakland County Home Sale Statistics-Third Quarter 2007

Housing market figures for Oakland County in September reflect a decrease in sales activity compared to September 2006: sales and sales volume were down eight percent and 18 percent, respectively.

Among the municipalities experiencing positive sales activity in the year-to-year comparison (with a minimum of 15 sales) were:

  • Commerce Township, which hit the trifecta: up 23 percent in sales, 28 percent in sales volume and 18 percent in median sale price;
  • Rochester, up 78 percent in sales and 107 percent in sales volume;
  • Oak Park, up 58 percent in sales and 36 percent in sales volume; and
  • Highland Township, up 55 percent in sales and 17 percent in sales volume.

Municipalities that saw marked decreases included Royal Oak (sales down 27 percent), Rochester Hills (sales down 25 percent) and Novi (sales down 25 percent).

And while 2007’s third quarter reflects a drop in sales volume and median sale price year-to-year, the drop doesn’t approach the disparity between third quarter 2006 and third quarter 2005. In those figures, the third quarter of 2006 experienced a 30 percent decrease in sales and a 34 percent decrease in sales volume compared with third quarter 2005. And while sales were falling, listings increased 18 percent.

Meanwhile, year-to-year third quarter figures for Oakland County reflect a six percent decrease in listings (the only negative here that’s a positive) and a small (one percent) increase in sales alongside a six percent decrease in sales volume.

Municipalities that experienced positive sales numbers for the third quarter (with a minimum of 25 sales) include:

  • Independence Township (up 102 percent)
  • Orion Township (up 62 percent)
  • Davisburg/Springfield Township (up 37 percent)
  • Highland Township (up 28 percent)
  • Commerce Township (up 21 percent)
  • Bloomfield Township (up 10 percent)

Learn more here:

Note that third quarter median sale price figures are calculated by averaging the median sale price of each month. Though an imperfect approach, we consider it the best way to efficiently provide a snapshot of activity during the period in question. That said, some of the municipalities had a month or two where no sales occurred. Therefore, instead of averaging three months of information, we averaged two months or carried over one month’s figure, the only information we had available. Those municipalities are as follows: Bingham Farms Village (no July ’07); Clarkston (no July ’07 or Sept. ‘06); Fenton (no figures for any month in either year); Holly Township (no July ’06); Holly Village (no July ’07); Lake Angelus (no figures for any month in either year); Leonard Village (no figures for any month in ’07 or for July and Aug. of ’06); Novi Township (no August or Sept. ’07, no August ’06); Orchard Lake Village (no September ’06); Ortonville Village (no July or September ’07, no August ’06); Royal Oak Township (no July or August ’07); Southfield Township (no figures for any month in either year).

Reprinted from MCAR

[tags]oakland county real estate, michigan real estate, metro detroit, bloomfield hills, beverly hills mi, royal oak, birmingham mi[/tags]

Oakland County Gives Away FREE Radon Test Kits

The Oakland County Health Division will offer free radon test kits to residents during National Radon Action Week Oct. 22-26. The kits normally cost $10.

From the EPA’s Radon site:

Radon is a cancer-causing natural radioactive gas that you can’t see, smell or taste. Its presence in your home can pose a danger to your family’s health. Radon is the leading cause of lung cancer among non-smokers. Radon is the second leading cause of lung cancer in America and claims about 20,000 lives annually. EPA has launched a new series of television, radio and print public service announcements encouraging people to test and fix their homes for radon. This is a good time to focus on testing and on fixing homes with a radon level of 4 pCi/L or more. Heed the Surgeon General’s warning. Take action now to reduce your family’s risk of lung cancer from radon!

Health officials urge residents to test for radon and take measures to reduce the gas in their homes if necessary.

The test kits and more information are available at the following Health Division office during weekday office hours: 1200 N. Telegraph, Pontiac; 27725 Greenfield, Southfield; 1010 E. West Maple, Walled Lake. Health officials will give out only one test kit per person.

[tags]radon, oakland county, radon test kits[/tags]

This is not a buyer’s market!

I can take this discussion in two directions.

First, I checked the sales in the MLS this morning, just like I do every morning (and again periodically through the day). In the past few days 11 houses have rented in Birmingham and Beverly Hills and 6 were sold. I would call that a landlord’s market, which is an emerging phenomenon for Metro Detroit. Those who can buy are choosing to rent in many cases. Even luxury homes are playing the game. Two Bloomfield Township homes are trying to break the $20k a month barrier. Nothing close to that monthly rent has ever been reported as a closed deal in the MLS (other than a few Rider Cup houses) but I have shown both of those homes… as rentals.

Supply DemandSecond, it is really neither a buyer’s market or a seller’s market. It is just the market. The supply curve and the demand curve cross at a certain point and market prices are established. Sellers who understand this have a better chance of selling their home. Right now we have lots of supply and not a lot of demand. If you are a seller, price accordingly. Be in the best condition, with the best market exposure and at the best price. It might seem like a hard pill to swallow, but that is how you will get the deal done.

If you are a buyer, there are actually homes out there that are priced according to the model above. They beat the competition in EVERY way. You will see them. In spite of what everyone is whispering in your ear (or shouting), you do not have to ‘low ball’ every house you like. Some of them are priced to “steal” as is. Others certainly are not. A good Realtor with a thorough CMA will be your guide.

Two years ago we had a buyer who did not particularly care which one of 4 homes they bought. They just wanted the best deal. We got it for them, and helped them make the decision about which home was the best deal by approaching all 4 sellers and letting them do the bidding. It worked. Buyer got a great home and seller got to move on quickly.

Today, transactions are happening.  Michigan homes are selling,  at a rate not far off from last year.  Educated buyers and sellers are at the center of those sales.

[tags]market update, birmingham mi real estate, bloomfield hills real estate, luxury home rentals, buying michigan homes[/tags]

Supply and Demand is by ChrisKazoo, who graduated from my alma mater, Kalamazoo College.

An Au-So-Naturale prospective client for Larry Cragun?

undressed

Larry Cragun has just launched the Neighborhoods Undressed blogging platform for Realtors. Coaching to be provided by Teresa Boardman. I think we have uncovered a great clothing optional Realtor client for him.

Good luck Larry and Kathleen.

We now return to our local programming. Clothing mandatory.

Photo by Mafleen

Architects offer Royal Oak Home Tour

The Detroit Chapter of the American Institute of Architects (AIA Detroit) invites the public to attend the “2007 Royal Oak Home Tour,” a walking tour showcasing six AIA architect-designed homes. The homes feature intriguing design concepts of urban living and contemporary design amenities that characterize the city.

The Royal Oak Home Tour occurs on Sunday, October 7, between 11 AM – 5 PM, and features homes located in a concentrated area near downtown area.

  • Grand Manhattan Penthouse at Metro Lofts, by Neumann/Smith Architecture
  • Parent Street Residences, by McIntosh Poris Associates – recipient of a 2006 AIA Detroit Home Award
  • Troy Street Lofts, by AZD Associates, Inc.
  • 311/313 North Washington Town(house), by H&F Architecture
  • Grant Park Lofts, by Stucky + Vitale Architects for Connektiv Communities
  • The Architect’s Residence, by FX Architecture– recipient of the ‘2003 AIA Honor Award for Design Excellence’

AIA-member architects and other professionals will host each of the residential units. The walking tour, which is open to the public, begins at the Center Street Parking Garage between Washington Avenue and Center Street off of Second Street. Limited shuttle transportation will run continuously from 11 AM until 5 PM, with the tour taking approximately three hours. Tickets are $15 in advance and $20 the day of the event. For more information on AIA Detroit’s 2007 Homes of Royal Oak Tour, including ticket purchase, please call (313) 965-4103 or visit www.aiami.com

Dmitry and I only have one great loft left in our Royal Oak loft building. Take a look.

[tags]royal oak, architecture tour[/tags]

If you have a community group with a home related event in Oakland County, we would be happy to publicize it here for you. Use our contact page to send us the details.

Magnificent 7 Nomination

Magnifient 7 NominationTwo of our posts were honored by Larry Cragun to be considered for his Magnificent 7.

We appreciate your nomination, Lar! Thanks.

There is no “return policy” on home purchases!

Return Policy

I don’t know if it was naivete or wishful thinking. Yesterday I had a call from a consumer who was looking for homes for her mother. She had found something she thought was suitable and she wanted to see it that night. I had never met her before, so part of my job is to pre-qualify a buyer before I inconvenience a seller with an unnecessary showing. After all, who wants to schlep the family out during dinner time for someone who can’t really buy the house, right?

So I asked the woman, let’s call her “Joy”, if her mother had spoken to a lender.

Joy said, “No, but I know her credit is great. I am not at all worried about her qualifying for a loan.

Me: “Is her current home on the market?”

Joy: “Yes, but she is doing a program with the bank where she gives it back to them after 3 months.”

Me: “That is foreclosure.”

Joy: “No, it is a program called Deed in Lieu, where the bank just takes the house back.”

Me: “It is called Deed in Lieu of foreclosure.”

Joy: “Oh. I don’t think my mother understood that.”

Bottom line: Banks don’t want houses back. They don’t have special programs that make losing your home a non-event. A home is not a returnable purchase. There are generally repercussions, and walking out with a perfectly unblemished credit history is not typically one of them.

Game Plan For the Future: If you find yourself having gone through a foreclosure and wishing to buy a house, SoundBiteBlog has some great advice about how to reach your goals.

[tags]foreclosure, deed in lieu, deed in lieu of foreclosure[/tags]

Return Policy by El Ramon

The Psychology of Home Staging

In today’s overflowing real estate market, home sellers need a psychological edge to ease the home selling process. They need to move on with their lives. They need to find a magic marketing tool that will set their home apart from competing houses for sale on the block. That magic marketing tool is home staging.

On any given day, buyers have a list of properties to visit as long as their arm. When they enter a house for sale, they’re not expecting to find “the one.” They are looking for one reason, any reason, to cross that house off of their list so they can move on to the next. This reason could be anything from a houseful of garish wallpaper to a full ashtray sitting on a counter. NEXT! And off they go………to the next house on the list.

A home stager strives to entice an emotional response to a house. We want the buyer to linger. That all-important positive first impression should continue through the entire house. The tenth impression is just as important as the first.

So how does the home stager achieve this goal? By creating an atmosphere that will cause the buyer to “bond” with the home. Home staging can generate a warm, welcoming ambiance. We present the best-case scenario to show the potential of each room. Any one considering it’s purchase can imagine living there. They connect with the space and start to visualize their own furniture in place. They envision reading a book in front of the fire on a chilly Michigan evening. They see themselves drinking champagne in the jetted tub. They mentally move in. This is precisely the psychological reaction that good home staging will elicit.

In addition to producing a sale, home staging can benefit the seller in other ways as well.

The first step in staging is de-cluttering. This forces the seller to start packing their belongings and eases the moving process once they do sell. Most homeowners have lived in their homes for so long that they no longer see their “stuff”. When the task of packing is at hand, people can look at their treasures with more practicality and objectivity. They are amazed at the things that have been hiding in their house! Donating and disposing of long-unused items can be downright cathartic.

With less clutter on display, the seller’s stress is reduced when a showing is announced. There is much less last-minute tidying up to do and this can decrease some of the anxiety that the homeowner feels.Marianne Sweet

Perhaps the most beneficial effect of home staging is that it assists the seller in disconnecting from the “home”, which is now a “house” for sale. Selling a home can be painfully emotional. It may, in fact, be an unwelcome necessity if divorce, illness or death are involved. After a home is staged, most personal effects are out of sight and the seller may start to feel less sentimental about leaving the home. It can ease the transition and help the homeowner to move forward with the next chapter of their life. And that’s a good thing.

[tags]home staging, staged home, home staging in Michigan, marianne sweet, staging a home to sell[/tags]

The Mysteriously Missing Tenants: A Precaution to Potential Investors

Missing Tenant

I doubt that there has EVER been a better time to make an investment in Michigan real estate. Opportunities abound, and smart investors will be rewarded.

Not long ago, I heard about an out of state “investor” who made his first real estate investment in Michigan. He was sold a high end home in the Birmingham/Bloomfield area and shown a lease that would more than cover his monthly payments, which on a property in the million dollar price range, are hefty. I don’t know how he came into this deal, or where he found the people who “helped” him to make it happen, but it wasn’t until hours AFTER he closed on the home that he realized there was no tenant to cover the bills. A bit more digging showed that the property wasn’t worth nearly what he had paid. Talk about a bad situation.

Then last week I heard from an anxious woman asking where she should report mortgage fraud. A mortgage lender told her that she needed to diversify her investment portfolio and that the best way to do it was rental property in the City of Detroit. From the sounds of her story, he found the house, showed her a lease and she signed on the bottom line, expecting to be collecting monthly rent checks for years to come. Unfortunately, there was no tenant, the home was in major disrepair and a host of other problems.

I feel sorry for both of these people, and I don’t want to hear about other people falling prey to these “too good to be true” scams. There are wonderful opportunities for investment right now in South East Michigan.

  • First of all, I don’t think that either party really knew who they were dealing with. Make sure you interview the lenders and mortgage people you work with before you invest.
  • Do your own due diligence. Attend a property inspection and physically examine the property. Ask for the sales history and comps in the same area. Ask for a copy of the public records to see what is going on on that street. Ask to meet the tenant. Look at the credit report.
  • Ask lots of questions.

By no means do I want to scare away anyone who is interested in investing in Oakland County real estate. Most of the professionals working in our market are honest, competent and able to guide you to a great investment. Invest, but watch your steps!

[tags]oakland county real estate investment, real estate scams, buyer beware[/tags]

Missing Person photo by Steve Wilde