Commerce Township, MI

This winters Metro Detroit real estate market is going to be a little different than last year. Here is what I see happening this winter.

1. Last year you could snap up Metro Detroit foreclosures really cheap. It wasn't unusual to be able to pick up a decent Metro Detroit home at a bargain price. This year I believe foreclosure homes prices will be higher than last year.
2. We will see more Metro Detroit foreclosures hitting the market than we had over the summer. Because of Governor Granholm and President Obama's moratoriums on foreclosures there were quite a few Metro Detroit foreclosures that got spared for a few months. Now they will start hitting the market starting in December.
3. Some bigger homes will start going into foreclosure. People who had good credit, good jobs have held on longer to these homes. But now even they are feeling the pinch. Even the good credit people are struggling because of the economy.
4. Oakland County Lake home prices will fall this winter. Again for the same reason as above. Higher end lake homes, second homes on the lakes are going to suffer. Even the people with deep pockets are starting to feel. Some people are going to have to sell because of divorce, of death, because they just can't afford it any longer.
5. There will be more action in the market over the winter. With the first time home buyer tax credit and all the investors there will be more multiple bids on homes.
6. The "marginal" cities will still have a lot of homes to chose from.

These are just my thoughts on what we will be seeing because of Detroit's struggling economy. If you have any questions always feel free to call or email me with any questions.

In the last 6 months there have been 220 Commerce Township homesthat have sold. Out of the 220 homes that have sold 182 have been priced under $260,000. Like most of the Metro Detroit real estate market it is the lower price range that is selling. The upper end homes are sitting on the market longer.

Of the 220 Commerce Township homes that have sold in the last 6 months it has taken an average of 120 days to sell.

I hope this gives you a look at what is happening in Commerce Twp real estate market. Info courtesy of Realcomp II Ltd

If you want to still grab the first time home buyer tax credit in Michigan you don't have time for a short sale. Short sales usually take any where from 2 to 6 months to complete here in the Metro Detroit real estate market.

Unfortunately we only have 30 days to get a signed purchase agreement. Sure we can get the purchase agreement signed by the the seller. They will sign anything to get out from under the money they owe the bank. But the bank is going to take at least 2 months to ok the sale. And that's the minimum amount of time. It could take six months.

So if you want the $8000 first time home buyer tax credit don't get involved with a short sale right now. If you are looking for a home right away give me a call or email me and I'll try to help you out.

Russ Ravary your Metro Detroit real estate agent

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This week in the metro Detroit real estate market has been tough on my clients and I. Really it was yesterday that was so bad. We got three rejections in one day. We had put offers in one a

• 1300 square foot Redford ranch foreclosure
• a 2600 square foot Farmington Hills colonial foreclosure
• and a 1500 square foot Canton ranch foreclosure

On all three properties we bid at full price or over full price with concessions to net out at full price. All three clients were at the top of the price range they could bid at. Every one of these Metro Detroit foreclosures sold for more than list price.

I knew the foreclosureswould sell for more. They were nice homes that were underpriced. The 2600 square foot Farmington home was underpriced by $100,000. The Canton ranch was about $40,000 under priced for our local Metro Detroit real estate market.

My clients knew they were worth alot more. I told them to put their best offer forward. And they did. They went to the highest point they could afford. My clients were smart. They didn't go over their budget. They bid to the highest price they thought they could reasonably afford.

We lost all three houses. In a small way I'm glad we did because I don't want my clients to lose their home 3 or 4 years down the road because they stretched their budget and bought a house they couldn't afford. I don't want them to over bid when they can't afford it. Many times a lender will approve you for a loan you can't afford. It's up to you to truly decide what you can afford.

Sure they would have loved to win those houses. But other people outbid them. One of the homes had ten bids on it, another had 4 bids on it. Metro Detroit foreclosures are selling quickly and sometimes for more than the list price.

The bottom line is bid within your budget and then put your best foot forward when you know the house is underpriced.

Russ Ravary your metro Detroit real estate agent

When you are an Oakland County first time home buyer how do you pick the right houses to see. Do you make your judgement to see the house on the pictures alone? Some foreclosures have only one picture, some agents are lousy picture takers. So don't make your decision to see the house on the pictures alone.

Equally important is to read the description and the agents remarks. Many times that will tell you the highlights about the house.

For example if they talk about the outside of the house and say very little about the inside then I would bet that the inside needs work or updating. But if the lot means a lot to you then you should check out this house.

If they say the house needs tender loving care (TLC), loving touches, original owner, or needs updating it means it needs work and needs money to get it up to date. It may need carpeting or the bathroom to be updated, or the kitchen updated.

If in the listing description they list the updates they have done you have a general idea of what isn't done and what needs updating.

So my advice to you as an Oakland County first time home buyer is don't just look at the pictures read the description too. And then make a decision on which homes to see. And if you have the time punch the addresses in to Google earth and see where the homes are.

For more Oakland County First time home buyer tips read my other two parts of the series on how to buy a home

Oakland County first time home buyers part 1 - pre-approval letters MI

Oakland County First time home buyers part 2 - where to start and do next

Russ Ravary your Metro Detroit real estate agent

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