Novi, MI

I haven't written anything for a while so I thought my first post back would be about housing and life in Novi, MI.

Novi's median sale price for for the 1st quarter of 2009 was around $182,500 which is down about 5.5% from the previous year. The number of homes hitting the market in Novi, has also declined. This tells us that the market is turning, and with less inventory, it's only a matter of time before values start to increase.

Novi is a popular place for prospective homeowners that are either moving from another city in Michigan or out of state. Novi has many different housing options available at a wide variety of pricing. If you prefer to live in a condo, small home, or luxury estate sized home, Novi has it all. The area has also seen it's share of foreclosures. The positive light on these sales are that they are typically priced well and home buyers are grabbing them up quickly.

Shopping, dining and night life make Novi a popluar destination for all different age groups. Many well known restuarants and department stores call Novi home. The Twelve Oaks Mall was built in the 1970's and recently went through a major addition bringing in many new stores.

If you are thinking about selling your Novi home, or calling Novi home, I can provide you with information.

Rob Chubb
Real Estate One - Novi
248-390-0850
rob@realestateone.com

Do you ever realize that when you get invited to a wedding, a graduation, or a function is that you are sharing in a special moment? It may seem a drag to you but to your friends or family member it is important. It is more than a commitment. It is an opportunity for you. It is a milestone in their kids life.

My wife and I were lucky tonight. We got invited to a "draft" party. A friend of ours sons got a contract with the Seattle Seahawks. He didn't get drafted in the NFL draft but he got a contract within a couple of hours after the draft ended. He got a job in the NFL!

It was a special moment for our friend Carrie Griffin. Her son Sean is going to the NFL. He went to Novi Catholic Central. And we were invited to be with them when they celebrated. It didn't matter it was 9 o'clock on a Sunday night. It was a special time. A time I won't forget.

I've known Sean since he was a little kid. I can't be more proud of him. I'm glad they called to invite us tonight. I'm glad to share in his families special moment.

It's a great life and good things do happen. Enjoy your kids and all the special times that you are invited to. Life passes us by way too fast.

Russ Ravary

The key to get a good home deal in the Metro Detroit is to either know the market or have a good real estate agent that does.

So many home buyers depend on friends, family, or other people on what is a good deal or how they should bid. After all the TV newscaster says...... As a metro Detroit real estate agent we can tell you what is going on in the market.

There are home bargains out there but you can't:

• decide if the home price is good because of the listing price

Many metro Detroit home buyers want something off the list price. But some banks and short sales are putting the list price below the market price. Other homes in the area might be selling for $25,000 more. So your bid on the foreclosed house may have to be at or above list price. It just depends on where the list price is and what the recent sold prices are for the area and for a similar home.

• low ball every home or every offer

I recently pull all the Livonia foreclosed home sold prices and compared to them to the list prices. Out of 25 homes 11 homes sold at or above list price and only 1 sold at 25% below list price. But I pulled Novi sold homes and the result was completely different. I even found some homes that sold in the same Novi subdivision. There were 3 or 4 homes that sold for over price and it was about the same amount that sold for 20 -25% below list price.

• go off what the home was worth 2 or 3 years ago.

It doesn't matter what the house was worth 3 years ago. What matters is what comparable homes are selling for right now. Forget about what the house was worth years ago... it's old news and has no bearing on it's price now. A new car 3 years ago was worth alot of money but today it is 3 years old and worth a lot less.

Having a real estate agent that will go the extra mile for you that's what is important. A agent that will pull the recent sold foreclosures and the recent sold homes in the area and not just go with any number to just get the deal done. If you base your offer on what other similar homes have sold for recently you will know whether you got a bargain.

I recently had an attorney advise their client to put in a low ball bid on a home the home buyer really, really wanted. We had looked at about 30 homes and they loved this one. It was decently priced and I suggested to only come in at 5% below list price. But no the attorney said the Canton real estate market was very bad. So put in a 25% below list price said the attorney. The listing agent called and said there were multiple offers. The attorney said they were bluffing and not to raise the price. I knew they were going to lose the house. When the home closed with the other buyer it sold at about 3% below list price. My home buyers were heart broken.

But the good news is that we found another house and they listened to me and didn't listen to the attorney the second time. They got the second home below market price. Not a lot but a little, and they got the home they wanted.

Russ Ravary your metro Detroit area Real estate agent

When you are buying Metro Detroit Real Estate you need a home inspection. It is that simple. No ifs, ands, or buts about it. A quality home inspector will save you money. They can point out items that many Metro Detroit first time home buyers would never see. Even experienced home buyers miss many problems that an experienced home inspector will find.

It's good to have an extra pair of eyes.

When you bottom line your Michigan purchase agreement you have a specified amount of time to complete a home inspection. It is in your best interest to schedule the home inspection as soon as possible. Everything hinges on the home inspection.

Your mortgage person doesn't want to order the appraisal until the house inspection passes. There is no reason to spend money on an appraisal until the house passes inspection. So the longer the home inspection takes to complete the longer it will take the mortgage process to complete. Especially if there are inspection issues to iron out between the seller and the home buyer. There are times it takes a week for the inspection issues to be negotiated. So if you wait six days and then the issues take a week you have lost 2 weeks. So it is best to schedule your Metro Detroit home inspection as soon as possible.

Here are some names of Metro Detroit Home Inspectors

• Pros Building Consultants 800-638-7470
• Cornerstone Inspection 734-658-0000
• Jim Tuaraova 313-770-5026
• Michigan Inspect.com 800-285-3001
• JW Home inspections 248-880-8817
• Pillar to Post 734-427-5577
• House Master.com 888-848-0202
• Milestone Inspections 734-748-7270
• Regal Home Inspections 888-873-4254
• All County Home Inspections.com 313-441-6573
• Cornish Home Inspections 734-671-6160

Most inspectors charge from $250 -$450 depending on the size of the home and other buildings. I would say the average price is in the $300 range. I believe paying for a home inspection is the best money you can spend. It can save you from buying a money pit. Many home inspectors treat the inspection as a learning experience for the home buyer. The good ones point out potential future problems and tell you simple tips to help you maintain your new home.

Bottom line is get a home inspection done whether you are buying a Plymouth home or Novi real estate.

Russ Ravary your metro Detroit real estate agent that looks out for your best interests

This mortgage guy my client fired sent her this email.

I am sorry that you left after all the time we spent on you file without a phone call or email. After all our time and money spent towards your file a chance to match or beat the rate you "found" would have been courteous. I know Russ referred the lender to you. He probably encouraged you to use the new lender. I will make sure he doesn't get any referrals from my realtors ever again. In the long run he will realize that his behavior was unprofessional.

To explain the situation indepth this was a in house company (Remerica) referral. The mortgage lender sent over a pre-approval letter. The client is a metro Detroit first time home buyer. I asked the client to specifically ask the lender what they buyer needed for sellers concessions. He said $5000. Well we get the deal accepted and then the lender realizes he needs $10,000 in concessions. So I have the clients ask for another good faith. The lender was a little high on the rate in my opinion. And I see rates every day.

Of course the new good faith has a higher amount of origination fee than the original good faith. It along with the needed concessions would have raised the loan amount and purchase price another $5000. My clients wanted to stay below that limit. They were stretching themselves too far.

They didn't want to over stretch themselves in a payment. But the lender called me and tried to tell me that they were approved for much more, and they would be fine if we raised the purchase price and concessions. But my clients starting asking questions and did not want to go higher. So the deal died.

Then they wanted to go to a different type of loan and the lender tried to steer them away from it. I told them I would give them a couple of names to check rates, programs, and fees. Well they found somebody that saved them $80 a month with lower fees, lower interest rate with the program they wanted.

So they dropped this guy like a hot potato.

So I had to write this guy back and tell him

I protect the best interests of my clients. I can't feel bad that you lost a client because you were overpriced and overcharging. Especially when there was a mis-communication and all of a sudden concessions went up and your origination went up.

You failed in 4 ways.

1) You did not communicate well the first time to the clients the amount they needed for closing

2) You tried to push them into a higher payment and loan than they wanted

3) You asked for more concessions and at the same time raised your origination fee more than on your original good faith. Which raised their payment.

4) You tried to steer them from a program they wanted (I think because it is not a common loan program)

They checked around with a lender that got them lower rates and fees. I guess you don't like that. Too Bad. Being in the mortgage and real estate business for 10 years I know there are lots of professional mortgage people that charge less than you do. Good quality people that have been in the business as long as you.

(The lender I had the buyer call was from Active Rain that I had never met, but had heard of)

This deal sort of reminds of a deal a few years back. I referred a client to a Friend that did these specialty deals. At the end of the loan my "friend" was trying to juice the loan. The clients were going to have to come up with a lot more money to come to the table with again because the origination points went up. Needless to say we aren't "friends" anymore. That friend didn't like the way I talked to him about juicing my client.

My professionalism is to protect my clients interests not put extra money into a lenders pocket. Everybody makes money on loans just don't get greedy with first time home buyers. I don't get involved in what the mortgage person charges or the rates unless I am asked. Then I will give my honest opinion. And I will give them other lenders names to check out. If that is unprofessional to help a client get a lower rate and lower fees, then I am extremely unprofessional.

My bottom line is:

DON'T ASK FOR MORE CONCESSIONS AND UP YOUR ORIGINATION FEE AT THE SAME TIME.

Russ Ravary your local Livonia real estate agent serving Wayne, Oakland, and Livingston County

P.S. This guy is really mad at me