Jules Yates

Despite national news, I have seen a sudden influx of cash buyers in the past month or so. With prices in the area at a record low many cash buyers are finding it simply too irresistible to pass up investing on real estate. Many industry analysts have claimed that there are literally billions of dollars just sitting on the sidelines waiting for the time to re-invest.

Why now? Historically the 4^th quarter of the year has always been the best quarter for sales as many buyers who have spent the summer looking finally choose their dream property. In addition many Sellers are fearful of their property sitting on the market through a long winter and they are willing to discount their homes to move them before the snow flies.

We have found that most buyers shopping in November or December are serious buyers and they make decisions rather quickly when they find a property they like. Summertime also seems like a time to do the investigation and information gathering.

Where are the buyers coming from? We are seeing them come from all over the country. What's interesting is out of town buyers typically do not shop as much as a local buyer and they may be accustom to much higher prices where they live so when they find something they like they tend to be willing to pay slightly more than a local.

When the economy is good and we get a lot of out of town buyers, prices will appreciate at a much faster rate than when the economy is down.

Despite what you may hear on the national news or the street, the real estate market in the Traverse City Area is great. Wait... let me clarify. The residential market in the Traverse City Area is great. With record low interest rates and flexible sellers, you will never find a better time to buy a home in this area. While you may have to take a bit of a hit on your price, you'll find that you can generally make up for any loss on the next home you buy. Think of it as "Trading Equity".

The vacant market is a whole different thing. Unlike the residential market which has seen declines, the vacant market remains flat. Flat because very few properties are selling at all. Prices can only fall if there are a lot of buyers and sellers find themselves discounting to stay competitive.

With the vacant market we are seeing sellers hold firm on prices and those who do discount have very few interested parties. Without sales the prices simply stay flat. That said there are a lot of really good deals out there if you are willing to take the time to look. Contact a REALTOR and see what is out there. You just might be surprised.

As always feel free to contact me with any real estate needs or questions. Jules@JulesYates.com

If you are a first time home buyer than terms like PMI, title Insurance, escrow and Earnest Money are probably completely foreign to your vocabulary. Well if they are I am here to help give you the basics.

1. FINANCES - For starters you need to have (or get) your finances in order. Learn about your credit score and what it means. The higher your score the better the chance of getting a mortgage for a new home.

2. GET A REALTOR - Talk to a REALTOR - An experienced REALTOR will generally recommend a lender or two for you to speak with. How do you choose a REALTOR... ask around. Ask your family and friends if they can recommend a REALTOR to you. Do some research online. By the way, don't assume that if an agent lists a lot of homes that they are good with buyers. Search out a "Buyers Agent" who will represent you in a transaction.

3. LENDER - Contact the Lenders. Most people want to start by talking with their local bank which is fine but don't assume they have the best rates. Often larger regional or national banks can offer better rates for you. In addition programs like Rural Development Direct Loans which are offered to low and very low income families through the US department of Agriculture may be available. Come of these programs are offered with $0 down and subsidized rates as low as 1%. Ask your REALTOR about these programs.

4. LOOK AT HOMES - Most people start their search online and that is fine but get out and walk through some homes. Kick the tires as they day in the auto industry. Open doors... look in cabinets... really look at a home's details. A fresh coat of pain is great but is it covering anything? Don't be afraid to ask questions of the listing agent, the Seller and most importantly your agent. By the way don't look at homes outside your comfort zone (price range) because you will simply end up wanting something that is unattainable.

5. MAKE AN OFFER - It truly surprises me how afraid people are to make an offer. A propertly written offer will give you plenty of ways to get out of the agreement if you find problems, can't get financing or you get buyers remorse. Tell your agent your concerns and let them help address any issues.

6. GET AN INSPECTION - Once you have your finances in order and you have an accepted offer, now is the time to hire a Professional home inspector. Yes I said professional... not your cousin Bob who used to build homes. Trust me on this. It will be the best $350 you ever spent. Also do not expect the home to be flawless. It will have issues as all homes do. If it is something major (yes... major) then it is reasonable to ask the seller to fix the problem or reduce the price. Little issue can be used as a negotiation point but be prepared to take the home as is.

7. CLOSING - Generally the agents will coordinate with a title company who will act as the closing agent. They are the neutral third party who prepares the document according to the terms of the purchase agreement. They will also coordinate with your lender to get the loan documents. AT this point it is generally smooth sailing but issues can come up so done be surprise dif something does and don't panic. Most issues always get resolved.

After the closing you are officially a homeowner. With interest rates as low as they are and sellers more flexible then ever... do yourself a favor and go buy a house. It will be the best decision of your life. Feel free to call me if you are looking in the Traverse City area or visit my website at www.JulesYates.com.

As a 22 year veteran of the business I have seen a lot of changes in my time but the short sale craze is been the most interesting I've seen in my career. I am a believer in doing short sales and I've done my fair share of them recently. First and foremost please be sure that whomever you choose to assist you with a short sale is able to prove how many transactions they have been involved with, how many they have negotiated and how many they were unable to complete.

Now is not the time to let an experienced agent do the negotiation for you and if your home is in active foreclosure you may not have time if they make an error as we all occasionally do. So how do you really know who to go to first? I suggest working directly with a REALTOR who has a proven track record in negotiating short sales. I should say, "...with a proven record successfully negotiating short sales".

So what about these companies who claim they do the negotiating for you or will charge you a fee to do a short sale? Personally I don't trust anyone who is ultimately going to profit from your (or the banks) loss. Yes, REALTORS will profit but if the home has to sell, ultimately a REALTOR will be involved. Besides a REALTOR actually will do far more work on a short sale than any traditional sale so hour for hour we do these short sales at a deep discount.

I have been approached by companies who work with a REALTOR and they negotiate the short sale for either a fee (to be paid out of closing) or by submitting a low ball offer to start the process and trying to flip the property to another buyer via using the REALTOR to find that buyer. In the case of a negotiation company I have found some reputable companies often times affiliated with title companies who do a good job. Generally these companies do not do the negotiation they simply gather and submit the paperwork.

Lots of companies ask you to sign a (often blank) purchase agreement, authorization letter and other paperwork which allows them to submit a very low offer for one of "their investors". The idea is to get a really low offer accepted and flip that property via a simultaneous closing where "the investor" will only hold the property for a matter of hours before selling to another buyer at a huge profit. Most end buyers have no idea they are not buying from the "Seller" (i.e. - the person living in the home).

Bottom line align yourself with a REALTOR who is experienced (and can prove it), knowledgeable and can explain all your options to you before attempting to list your home. In the end if it need to be sold, that REALTOR is the person that should be able to get it done for you.

Feel free to call or email me your questions at 231-218-5199 or jules@julesyates.com. You can also visit my website at www.ExitShortSales.com

Now I’ve been in this business for a long time (20+ years) but I don’t ever recall a time when it was so hard to give away a perfectly good house. What do I mean? I have a wonderful home located in LaMar Estates near Chums Corners in Traverse City and I can’t seem to give the home away. Could it be that people fear that it’s a short sale? Is it the fact that the “Tax Credit” is over? I wish I knew because this house is a GREAT value and any (and I do mean any) reasonable offer will get you this fine home. Located on the largest lot in the subdivision, this 3 bedroom 2 bath tri-level home features a knotty pine interior, large lower level family room, an attached 2 car garage and even a fire pit at the back of the lot overlooking Hoosier Valley. The home is currently vacant and ready for you to move in. Do you have a fear of “Short Sales”? Don’t… because a properly written purchase agreement will ensure that you and only you will have first rights to buy this home. Since we have been in direct contact with the lender, we are half way to an approval. For a quick lesson on how to “steal a home” by buying on a short sale, call me at 231-218-5199 or visit www.ExitSHortSales.com