Livonia, MI

A guy I knew became a fire chief of a small town. He came in and started changing everything. He had trouble in his last city as fire chief. He butted heads with the union, the town council, and the employees. Well he came into the small town and did itagain. After a few years the town council voted him out and brought back the retired chief to "straighten out" the turmoil.

He was abrasive and didn't get along with anybody. We as real estate agents sometimes get into situations with agents like that. Sometimes these agents only care about their own ego. By the time the transaction is over everybody hates them. The buyers, the sellers, and the other agent dislike them.

They forget that we need to work together to get the deal done. They forget that behind "the buyer" or behind "the seller" that they are people with feelings, fears, and worries. That's what we as real estate agents have to remember as we grow into successful agents.

Each client on both sides deserved to be treated special. Not just a another part of the million dollar sales figure. So remember that when you do your next deal. Don't be the jerk that guy I know is to the people he deals with.

How bad is the metro Detroit real estate market? If you ask about sales in the under $125,000 price range it ok.... low price decent condition homes are selling fast. But if you ask about how far the market has fallen then it is a total different story.

One of my clients closed on a Livonia condo today. It was over 1000 sq ft and we got it for $35,000. A few years ago it probably sold for $140,000. But was is even more remarkable is that the seller bought the condo for $61,000 nineteen years ago. Livonia real estate has dropped in value dramatically.

19 years ago the house sold for more than it is selling for today! It's unbelievable but true. 57% less than what is was 19 years ago! Some Redford bungalows are selling 25% of what the homes were selling for 5 years ago. Even my own subdivision is 40% off their highs of 5 years ago.

Russ Ravary your metro Detroit real estate agent.

I looked at a beautiful home two days ago with a client. It was about 1300 square foot bank foreclosure and was listed at $56,000. It was absolutely gorgeous. There was nothing wrong at all with the house. It was worth an easy $110 - 120,000.

It outshone every house we looked at that day. I recommended to my client that she put in a bid a $75,000 the max she was approved for. I told her to email me once she decided on what to price to bid that night.

Later that night she sent me an email stating that she wanted to bid $60,000. I knew that would never win the house. I knew she would lose the house. So I sent her an email stating all the reasons why she should bid $75,000.

But what is great is that she is one of the smart buyers. She sent me that she couldn't afford more than a $60,000 house payment. She doesn't want to over extend. I'm glad she didn't listen to me and go for the top price that she could afford.

This is one buyer that will have a house in the years to come while home buyers that push their upper limits may struggle.

So the bottom line is: Just because the mortgage company approves you for a higher loan amount, and the real estate agent tells you to bid high to get your dream home. Figure out yourself what you feel comfortable in a house payment. And then STAND YOUR GROUND. You will be glad you did in the future.

Russ Ravary your Metro Detroit Realtor

Are you thinking of buying a Metro Detroit home and putting in a house offer but there are home improvements?

Even when comparing exact model matches within a subdivision of homes, you should note whether the previous owners have made any substantial improvements. Cosmetic changes should be largely ignored, but major improvements should be taken into account. Just because it is painted or landscaped nice doesn't add huge value.

New windows, new roof, new furnace are a little plus but doesn't add huge value. We expect all homes to be in "working condition" or "fair condition". Most important would be room additions, especially bedrooms and bathrooms. If you get a new roof, new furnace it is a plus but not a value unless the other house you are looking at is going to need a new roof, or new furnace within 2 - 5 years. If you are getting more square footage, more bedrooms, or more bathrooms for the same price then that is a better deal.

Major upgrades, such as a complete kitchen remodel, can be considered also. If all the homes you have been looking at need new kitchens, but one has a new kitchen. And that home is asking $10,000 more! The question is how much would it cost to bring the others up to the same standard. Of course then you could do it the way you want. But if it cost at least $20,000 to do a kitchen and the other homes are very similar. Then the one that costs only $10,000 more is a better deal.

Over the top improvements should be discounted. Sure a spa, granite counter tops are great but they don't add huge value. If granite counter tops cost $5,000 it doesn't add $5,000 in value. Other items, such as expensive floor coverings or swimming pools can be taken into account also, but should be discounted. A pool that costs $20,000 to install does not normally add $20,000 in value to the home. A pool may not add value at all. Many people don't like pools at all. Some people won't even look at a Metro Detroit home with a pool.

If you are buying a metro Detroit home then consider the home improvements that affect the value of the home. The bottom line is that additions, square footage, extra space, extra bedrooms, extra bathrooms, more usable space, larger garage give more value. Remember when looking at Michigan houses for sale to compare apples to apples as much as possible. Westland and Livonia real estate may be less expensive than Northville or Novi real estate even for the same square footage.

Russ Ravary your Metro Detroit realtor

Search Metro Detroit foreclosures

All right, all you Metro Detroit first time home buyers it's getting to be crunch time. If you want to get your your $8000 you need to buy a home and close on it by December 1, 2009. We need a signed purchase contract by November 1, 2009.

So let me ask you how long have you been looking? 3 months, 4 months, or 5 months? How many homes have you looked at? 30? 50? 70? Have you lost more than one offer that you have put in? Have you lost more than one home because you were outbid. Were you outbid by $10,000 or more dollars?

Maybe you have changed Realtors because they weren't getting what you want. Have you been bidding on homes at the top of your price range? And you can't bid over the list price?

Are you tired of losing homes? Then it may be time to scale back your expectations. Now is the time to start looking at homes a little below your upper price range. Many Metro Detroit foreclosuresare selling over list price. So you may need to be able to bid over the list price to get the home.

If you have lost three or more homes because you were out bid, now may be the time to re access what you can really afford. What you can really buy. What you can really win?

The key is to get a home. The key is to live within your means. Sometimes you can't have everything you want the first time. Remember this is your first home. It's just a start. So sit down and think about what you need to do.

Russ Ravary your Metro Detroit real estate agent