Disclaimer 1: I don't market homes that are in a short sale position. Why not? I don't have the expertise and feel strongly that anyone who works with sellers in this situation should know what the heck they are doing!

Disclaimer 2: I haven't had a buyer make an offer on a short sale. Why not? All of the home buyers I've worked with this year have had time frames that needed to be met to be in to their new homes.

After reading much about short sales, and listening to real experiences being told by the agents who are working with these sales I have learned enough to know the following and pass along the S.S.S. to you:

A home owner puts his home on the market for less than what they owe on their mortgage (or 2 mortgages, or 3 mortgages.)

The sellers real estate agent and the seller then put together a package for the lender (and 2nd lender, and third lender if applicable) to explain the hardship that the seller is facing, the falling property values in the area and the seller also sends along all of their financial information. (Think of this as the documentation for applying for a mortgage, but with reverse intentions)

A home buyer hears about the house for sale that is priced attractively and makes an appointment with his buyers agent to view the home. Home buyer then decides to make an offer on the home. Seller accepts the offer and the purchase agreement is forwarded over to the lender (and 2nd lender, and 3rd lender, if applicable)

Home buyer and the buyers agent wait. The first week goes by and everyone is still patient because of course they've been told to expect this wait. The 2nd week goes by and still everyone is displaying patience. On to week 3 and the buyers agent has been calling the sellers agent asking if there is any news, and has the package(s) that has been submitted to the lender(s) been reviewed? The sellers agent states "Have patience". Week 4 comes around and perhaps the package has been reviewed by someone with authority to do so at the first lender. (I'll stop mentioning lender #2 and #3. You get the idea by now.)

Weeks 5-8 the lender orders a BPO. (Brokers price opinion, meaning that the lender, normally in another state, wants to make darn sure that the house is really worth what the seller, the sellers agent, the buyer and the buyers agent in this local area feel it is worth.)

The lender(s) decides one of two things: That the house is worth what the purchase offer indicates, or that the house is worth more than what is being offered for the home.

Guess what happens if they decide it is worth more? Google "short sales" and you'll have so much to read that your eyes will hurt.

Did I forget to mention the fact that some of these transactions don't allow seller paid concessions to the buyer? Did I also forget to mention that while the buyer is waiting for a response that the interest rate they were quoted upon mortgage application has probably now expired?

Purchasing a short sale can be a good thing for the patient buyer and the seller. Always ask upfront what the expected time table is, and be aware of the challenges and changes that can take place during the process.

Go in to the process with your eyes wide open. Ask your agent for their experience with them, and seriously consider a long sit-down with your agent to discuss your purchase options in this ever changing real estate market.

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I can write all day about first time home buyers and repeat home buyers in my neck of the woods in Michigan (Macomb County) but I really wanted to write today about the intangibles that a buyers agent brings to you, the consumer, when purchasing a home.

When I represent you as a buyers agent I take on the responsibility to care about you and your home purchase from start to finish. You come first. It's that simple. I do not represent the sellers, their agent, the home inspector, the lender or anyone else who is a party to the transaction. I represent you.

Here are some of the things that I do to look out for you:

Keep in touch with your lender. Continually. You will always know what is going on with your financing.

"Flag areas" of interest to you. When a home comes on the market you'll be the first to know about it. Likewise, if a home has a price reduction, you will know about it.

Discover the history of the homes for sale that you are interested in. Is the home currently in foreclosure? How many price reductions has the home had? Are their currently liens on the home? Knowing as much as I can about a home you are interested in helps us tremendously in the negotiation process and in other areas.

Accompanying you: I will be there with you for your home inspection standing out of the way to allow your inspector to go over the home with you. I will also be there with you for the final walkthrough of your new home prior to closing. Do you want to go back through the home to measure wall space for furniture or windows for shades? I'll make the appointment and gladly take you through as many times as you need.

Mandatory repairs will oftentimes be needed if you are purchasing with a FHA or VA mortgage. I've been representing buyers for years and am informed about FHA guidelines. I keep an eye out for those things that I am fairly confident that FHA or VA will cite as a no-go. So many homes on the market today are bank owned and as such, you will be responsible for repairs to the homes. I will advise you throughout the process so that you are not surprised by anything that happens.

Accurate tax information: There is much online now from the various cities and township assessors offices however I go one step further to ensure that you are receiving accurate property tax information. I go to the offices of the assessor and verify the amount with them. I don't like surprises when it comes to this information and I'm sure you won't either.

Back to the city offices: If your work schedule does not permit you to visit the assessors office after closing to turn in the property transfer & homestead forms I will do that for you. You will receive a copy from me hand delivered after I have done so for your records.

This list is not all inclusive. Each person, each transaction is different. There are many more intangible ways that a buyers agent can help you and be of value to you. A good buyers agent is a partner to you throughout the home purchase process.

Interview and choose a buyers agent to work for you.


Macomb County MI homes for sale

The city of Mount Clemens MI will be hosting an arts and crafts festival this coming Friday and Saturday (July 18th and 19th) in the heart of the downtown area.

The weather looks to be spectacular for this outdoor event, although bring your sunglasses and water bottles. (It should be a hot time in the city!).





In the paved area within the center square there will be a local musician, Rick Charming, performing at 11:30 on Friday . (If the name sounds familiar it's also because he has been known as Mr. Bachelor to many of you and is my oldest son.) I'll be there to listen to him and have the small cooler of water bottles for him. If you spot him, please wish him a happy day-after birthday!

Parking for the event is best off of the west side of Gratiot in many of the public parking lots. I always look forward to going to these events throughout the summer as it showcases the wonderful businesses in the heart of Mt. Clemens, as well as the many area artists.


Kris Wales - A Macomb County MI real estate agent.

Chesterfield Township Michigans Muirfield Manor Subdivision is one of the completed subdivisions in our area that has a nice mixture of homes: Ranch style, Split-Level and Colonials.

This location in Macomb County is within the Lanse Creuse school district and also offers to a prospective home buyer a range of prices and sizes in the homes:


Since April 1st of this year 2 homes have sold within Muirfield Manor. One of them was an approximately 1600 square foot ranch that sold for $179,000. The other was a bank owned foreclosure. It was a split level design of approximately 2250 square feet on a corner lot that sold for $184,275. (The seller paid $10,725 in concessions to the buyer of the home, which I have taken into consideration with the quoted final sales price.)

I had the opportunity to view the split level home that was a foreclosure and believe the buyers of this home received an outstanding deal on this home. It generally needed some landscaping "loving" and an all around good cleaning, paint and carpeting.

Currently there are 7 homes on the market in Muirfield Manor. They range from a bank owned foreclosure that is priced at $164,900 (a 1600 square foot ranch) to a lovely 2400 square foot split level that is priced at $269,000.

Muirfield Manor in Chesterfield Township MI can be found just south off of 24 Mile Road, east of Gratiot.



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Chat about Macomb County MI real estate

It's been a while since I had to go to the city center in Warren MI to pick up any type of documention and I was happily surprised by the sight of children playing in what I call the splash fountain.

When the city planners and residents of Warren MI decided to build their new municipal headquarters they did a fabulous job of incorporating all of their buildings and the ease of citizens in accessing them in one area:

The municipal building in Warren MI

Free parking garage

There are also several condominium subdivisions to the eastern side of the city headquarters center in Warren, many of them the lovely townhouse style that are popular and affordable in the city of Warren.

Chat about Macomb County MI

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My hubby called this morning after he got into work and was really
frustrated.

He stopped to fill up his gas tank at his usual gas station and was greetedwith the following upon swiping his bank card: "Please enter zip code." Not a problem. He entered it. Then he was prompted to "see cashier".

He thought there was a problem with his swipe-stripe and went into the
gas station only to find 10 other customers waiting in line. From the conversations overheard he was able to understand this much:

The gas station now prefers everyone to pay by cash. If you are going to pay by bank card or credit card you have to come inside to show your card and have the signature verified by the attendant.

He drove on down the highway and stopped at another gas station. Believe it or not he was greeted with the same prompting, and the same "Come inside..." and yet the same line full of customers all rushing to get to their workplaces.

Once again he left. The most frustrating part of the sudden change in the "pay at pump" routine? There was no advance notice of it, nor were there any signs on the pumps or at the door of the stations notifying customers what the new policy was. Because of this there were many unhappy customers at 2 separate businesses this morning. Many people who were there at the same time were just as frustrated and left, without giving their business to these gas stations.

I was wondering about something after I got off the phone with him this morning. In our real estate industry we have seen many sudden changes, ones that have inconvenienced consumers in many ways. From the mortgage changes to appraisal guideline changes the list could go on and on.

Will the 2 businesses that my husband visited, then left, recover from the bad experiences that so many consumers had with them this morning?

Will the sudden changes in our industry leave a bad taste in the mouth of consumers that could take years to change?

© 2008 Kris Wales a Macomb County MI real estate agent

During last nights Detroit Tigers game vs the St. Louis Cardinals there was a rain delay.
A lengthy rain delay. A 2+ hour rain delay.

I've often heard it said that little boys grow up to be big boys and you really can't take the
kid out of grown men. One of my favorite Tigers players proved that last night and entertained
the die hard fans that waited it out.

Todd Jones, the amazing closer for the Detroit Tigers, aka The Rollercoaster has always been
known for his wit and his grace and fun loving heart.

While the tarp was on the field Todd decided to have a little fun. He donned a Magglio
Ordonez wig and jersey and took the field reenacting Magglios famous home run that clinched
the 2006 ALCS game.

Watch for yourself. I guarantee you'll laugh as much as I did, especially if you watched the
original home run in 2006 or have seen its replays. (Watch it til the end and see how much
fun his teammates were having on the bench while this was going on, and how many players
had video cameras going recording the scene.)

Todd Jones impersonating Magglio Ordonez and his 2006 ALCS championship walk off home
run.

I bet those in the stands and the players that were recording were glad they invested in
a video camera!

We wouldn't write about interest rates dropping when they weren't. We also wouldn't write about a home being offered for $50,000 when the real asking price is $100,000. Why in the world am I seeing
articles misreporting facts about something so important as HUD guidelines?

Last week it was announced by several
news organizations that HUD has waived
its 90 day "anti-flipping" rule. (This rule was put into place in 2003 to guard against predatory house flipping and worked well in my opinion.)

What wasn't readily reported were the details of this new waiver.

Because we sometimes see only the exciting headlines and don't follow through to get to the heart of an article we miss the truth in what the little that we do read.

Worse than that, we then report what we read without checking into the facts.

Before you head out there with home buyers and tell them not to worry anymore, that yes you can purchase a home that has been owned for less than 90 days please read the details.

As real estate agents and others in this profession we have a responsibility to get our facts straight. I read one of the first articles on this waiver, and sent an email off to one of my trusted and valued mortgage professionals, Mike Caira of Great Lakes Mortgage Funding in Shelby Township. He in turn got on the phone with an underwriter to get their interpretation of this reported piece of legislation. By the end of the day I had my answer: Yes, parts of the 90 day anti-flipping rule is waived. But not all of it.


I'm going to sound like the watch commander on Hill Street Blues, but please, let's be careful out there.

Talk to your trusted resources, get all of the facts, then go out and help your buyer and seller clients. I'm sure
you don't want to be the professional who gives incomplete advice to your clients simply because you took as
factual tidbits of an article you read.


© 2008 Kris Wales a Macomb County MI real estate agent

Dear former homeowner,

It is quite possible you won't ever find this and read this but I had to try.

Today I brought potential buyers in to view the home that you once owned and unfortunately lost through foreclosure.

When we first entered the home we were amazed at how well maintained it appeared to be, and were delighted by the fact that it wasn't a "typical" foreclosure home that we had been used to seeing.

Upon entering the kitchen we saw a piece of paper on the counter that
was hand written. I knew it wasn't something from the bank owner, or
property manager. As I drew closer to it and picked it up I felt chills
going through me. It was your letter, the one you wrote and probably
thought would be removed.

In the letter you described so hauntingly what happened to you and your family and how you lost your home that you obviously loved and cared for. I'm not ashamed to admit that I became emotional while reading it and couldn't finish it. You see, your story is not unlike many others in Michigan. The whole state is in an economic crisis and many families have lost their livelihoods and homes. The reality of that hits us smack in the face each and every day and it hurts. It's hard to see this and not become emotional.

I can only imagine how hard it was for you to write it, I feel I owe it to you to go back to the home and finish
reading your letter.

The potential buyers that I brought through your home also read part of it. They couldn't finish it either.
It saddened them to read your words, especially after seeing how well you took care of your home and obviously took pride in it.

I don't know what else to say. I'm at a loss for words but wanted you to know I'm grateful that you
weren't. Your words are still there on that piece of paper on the kitchen counter. There have been many people through the home over the last several months and no one has removed the letter. Your words also wishing the new owners happiness also will be read and cherished by whomever purchases the home.

I pray that wherever you are and whatever you are now doing you will find prosperity and peace for you
and your loved ones.

Sincerely,

Kris Wales

Photo courtesy of Laineys Repertroire hosted at Flickr

I had one of the most interesting conversations with a potential buyer client yesterday afternoon and it didn't
involve his wish list or want list for a new home. At the end of the conversation I asked him for his permission
to write about our talk and as he found me via my blog posts he agreed.

The young man I spoke with has been interviewing agents online for several months without the
agents being aware of it. His interviewing has involved reading as much as he can on various agents websites, and recently he found ActiveRain. One thing that he said made me stop in my tracks and nod
my head in agreement as I've had the same gut feeling when I am in his shoes as a consumer: Don't tell
me you're honest, hardworking or trustworthy.

In his words: "If I read from someone that they are honest or they're hardworking or trust me I've just put a stone wall in front of them. I'll walk around the wall and read someone else. I won't take the time to walk through the wall."

I asked him why those words put him off, anticipating the answer because I've felt the same gut
churning when someone has said those words to me.

His short and sweet reply? Prove it, don't say it.

I wonder how many of us in trying to convey our value to consumers and peers have used those words and phrases in our marketing not knowing that we were building an imaginary stone wall in front of us? A wall that the consumer won't walk through but rather walk leisurely around?

Mr Caller: I look forward to talking to you again. You gave me one of those eye opening moments that only someone on the outside of our profession can and I am grateful for it. Perhaps next time we talk we'll get around to talking about your real estate needs. I would be honored to prove myself to you.



© 2008 Kris Wales a Macomb County real estate agent

Photo courtesy of Fractal Artists photos on Flickr