Damien Coles - The Barnes Real Estate Team

Are Short Sales really worth the wait?

Whether Buyers like it or not, a nice chunk of the available inventory on the Market today is "Subject to Short Sale Approval". But the question remains, are Buyers willing to wait the amount of time that may be necessary for the sale to close? Many Short Sale disclosure forms will tell you that it may require 90+ days for an offer to be reviewed by the Bank. And let's not forget our wonderful friend, the Appraisal... It's no wonder these transactions may take more time than usual.

After an offer is accepted by a Seller, the required paperwork gets forwarded to their respective Lender for approval, and the home is placed under a Contingency. During this time, an Agent will normally advise their Sellers to continue showing their home so as to recieve backup offers. This is where the fun part comes in. Is it really worth it to show these homes under Contingency? Will the original Buyer that made the first offer walk away? How long is the paperwork going to be tied up by the bank? Has the appraisal been ordered? How far away is the Seller from going into Foreclosure?

All of these things need to be considered before presenting an offer on a Short Sale property. Everything comes down to TIME! Sure, the "deals" are still out there, but if a Buyer needs to be into a new home within 3 months or so, the Short Sale route may not be the best option. It's important that the Agent discusses ALL of the options available to their clients. There will always be a degree of uncertainty to ALL parties with every Short Sale transaction.

And of course, this is only the icing on the cake, since there is a LOT more to it than meets the eye. It's imperative to consult a specialist to evaluate YOUR options!

The road to Short Sale is long and tedious, the rewards to a Buyer can be great under the right circumstances!

MiRealSource - April, 2011 - Market Statistics for Macomb County - Residential

Sold Listings

• 792 Total
• 405 Privately Owned (51.19%)
• 387 Bank/Gov/Other (48.9%)

Average Listing Price (Sold)

• $95,051 Market
• $115,620 Privately Owned
• $69,432 Bank/Gov/Other

Average Sale Price

• $88,606 Market
• $108,320 Privately Owned
• $67,974 Bank/Gov/Other

Average Days-On-Market (D.O.M.)

• 67 Market
• 87 Privately Owned
• 46 Bank/Gov/Other

So, the number of sold properties has gone down since March, but the good news is, the numbers still remain relatively consistent.

The absorption rate sits at about 22 weeks. From February, this number has dropped significantly, and could be a sign of good things to come!

Check back often to stay up-to-date on the latest market statistics!

MiRealSource - Q1 - Market Statistics for Macomb County - Residential

Sold Listings

• 1650 Total
• 807 Privately Owned (48.9%)
• 843 Bank/Gov/Other (51.1%)

Average Listing Price (Sold)

• $95,310 Market
• $123,671 Privately Owned
• $68,160 Bank/Gov/Other

Average Sale Price

• $90,074 Market
• $115,431 Privately Owned
• $65,800 Bank/Gov/Other

Average Days-On-Market (D.O.M.)

• 68 Market
• 93 Privately Owned
• 45 Bank/Gov/Other

Note how there is a slighly higher percentage of Bank/Gov/Other properties sold for this Quarter

As it stands, the Market has remained relatively consistent for the First Quarter, 2011. As compared to the Fourth Quarter, 2010, there is a HIGHER volume of properties sold, with an increase in the Average Sale Price for Privately-owned homes! Could this be a sign of positive trends?

As always, stay tuned for next month!

It seems to me that time and time again, I always hear about how the "older generations" are having a hard time coping with our constantly changing technology. See, I'm 21, and what comes naturally to me may not be so for others. I mean, let's face it, I was brought-up on this "newfangled" technology! For this very reason, I feel, the fact that I'm the youngest person in my office gives me an edge in that regard. I'm already plugged into the Social Networking Pipeline, and I understand SEO and Internet Marketing for the most part! And yet, I'm still humble enough to admit that I don't know everything about everything! I'm always learning new things!

But that does NOT mean that I don't help out the "old school" agents every now and then. I find that they're just as eager to learn these new systems as anybody else! In fact, sometimes I barter for their "old-school" tips/tricks! It makes me feel good to teach them the "shortcuts" and "how-to's", and they're extremely grateful for it!

Whether it's about simply navigating a computer or desktop publishing software, or about designing a website/blog or Facebook page and the like, I get asked a lot of questions! It can be a lot of fun for those who are willing to keep an open mind and LEARN! Sometimes I think I need to slow down, though, when I'm explaining things! I find that I tend to think faster than I can talk! J

And, of course, this post is all in good spirits!!

Here at Real Living, we're privy to the newest technology, and I'm proud to say that I'm a member of my office! We thrive in a very friendly, success-oriented atmosphere, and I wouldn't have it any other way! I feel it's important for Agents to keep up with the changing technology out there, and I'm doing my best! After all, our advancements pave the way to something BIG!!

Leasing as an Alternative to Foreclosure

This is probably one of the most least-considered options for Homeowners facing Foreclosure. It seems that when things become dire, Homeowners automatically begin to think "SHORT SALE" when they can't sell their home the "old-fashioned" way, because they owe too much! Fortunately, there IS another option!

If you CAN'T pay your Mortgage, find someone else who CAN! Hiring a Real Estate Agent to help you rent out your home is one of the easier things you can do to avoid foreclosure! In lieu of their primary residence becoming a rental property (and secondary source of income), a Homeowner can downsize to make their situation less burdensome, thereby avoiding foreclosure!

It's understandable that a rental payment from a tenant may not completely make up for an existing Mortgage payment, but it will, at the very least, reduce it to something more manageable for the Homeowner! Not only this, but having a renter removes the burden of utilities and other miscellaneous bills for the home. At the very least, it's a temporary solution until a more long-term one is presented! And, as always, this is under the assumption that you have a reliable tenant!

But BE CAREFUL! A Homeowner should NEVER sign a lease to a tenant unless they have secured another means of housing! You would think this is common sense, but mistakes DO happen!

For the Homeowners that aren't privvy to the world of being a Landlord, there are Property Management companies that will oversee the maintenance of your property for you! Of course, this will come with a nominal fee from every rental payment, but, again, it's all about reducing YOUR burden! In my office, we have an affiliated Property Management department that will provide their services to Lessors for 10% of every rental payment.

Foreclosure is an UGLY thing, and it's something that EVERY Homeowner should avoid at all costs! Be aware of your options!! Consult a Real Estate Agent!! They will help you decide the BEST course of action to take!! Remember, in the world of Foreclosure, it's always a race against TIME!