Robert Smith

One thing that seems to stay constant in my real estate life is an appreciation of architecture, form, light and color. Some pretty typical-looking homes just seem to catch my eye. I guess the same thing goes for cars, people, animals, and yes – even barns.

I was driving to a new property assignment yesterday morning. There was a moderate fog at my first stop, and as I neared my second destination, the sun was poking through and burning the fog off. I’ve passed this particular barn many times over the years, but coming out of a foggy patch into the sun and seeing this dilapidated old barn in that exact light made it seem as though I were seeing it for the first time.

Of course I pulled over and grabbed my always available camera to snap a few shots. This one was at f5.6, 1/1000 sec exposure and ISO 800. It’s definitely the one I like the best.

Livingston County Solid Waste Program has a one-day collection coming up next Saturday, October 29^th, from 9am to 2pm. No appointment is necessary, just bring your old computer equipment, televisions and peripherals, stereos, cameras, fax machines, gaming systems for drop off and proper disposal. The collection is at the County’s East Complex, 2300 E. Grand River (48843) at Chilson.

They also accept old cell phones, but drop those off at my office for the ‘Cell Phones For Soldiers’ campaign. We’ve collected over 2500 cell phones so far!

This event is free to County residents, and includes small businesses with 10 or fewer employees. Many hazardous substances can be found in electronics and this proper disposal will keep those contaminants out of landfills where they might filter back into ground water.

For more information, call 517-545-9609, or visit the website at http://www.co.livingston.mi.us/SolidWaste/

Each month, Credit Suisse surveys Realtors about their local market. September’s results were just released and for the metro Detroit area it concludes that buyer traffic and sales prices are down and incentives offered to buyers from new home builders are flat. Even with true, record low mortgage rates (below 4%!), there are skittish buyers, largely attributed to economic uncertainty.

While the most recent month’s home prices on new construction are holding steady, data indicates prices will drop in the next few months. Folks in the Lone Star State should be happy, though, as both Austin and Houston were showing signs of a modest rebound. On the other side of the spectrum, Charlotte and New York saw big declines in buyer traffic.

There are some new construction starts in the Livingston County market, but I wouldn’t call it a groundswell of activity. After the last couple of years, any new home building is a good sign. Construction is occurring in the Northridge Hills condominiums in the City of Brighton, and there are some homeowners building outside of large subdivisions controlled by the big building and development groups, too. If you want to build a home, you may have a little difficulty in finding a willing lender, but there are still a few out there doing new construction loans.

Located in Brighton Township, just outside the Brighton City limits, this platted subdivision has been attractive for first time homebuyers for many years. Affordable ranch homes in Brighton schools, convenience to retail shopping and easy access to Interstate 96 and US 23 are some of the draws.

The boundaries are roughly Grand River Avenue to the south, Interstate 96 to the north, Old US-23 to the east, and the Brighton City limits to the west, and there are 179 homes in this sub. The Brighton Country Club subdivision is on the other side of I-96 and not included in this post.

The streets are all public, so they’re maintained by either the road commission or the township. Originally, the subdivision was served by community wells, but in January 2008, water service was transferred to the Livingston County Water Authority. The lots are predominantly 60 ft wide by 132 feet deep, although some are 90 feet wide. Some of the homes also have basements, but there are also some built on crawlspaces or slabs. Garages (when present) are typically two car variety and are most often detached. Most of the streets do not have through traffic, except for Burson which empties to Old US 23 on the east, and at Leland just north of Grand River on the west.

The housing stock consists of mainly ranch style homes in the 900-1200 sq ft range, most with three bedrooms and one full bath. You can find a few 1400+ sq ft homes, and some will offer an additional half or even full bath, but those are somewhat rare.

In 2008 there were 5 sales reported in the local MultiList System (MLS), all purchased by owner occupants with either FHA or conventional mortgages. The average sold price was $114,310 and the average time on market was 99 days. There were also 5 sales in 2009, but three were to investors buying for cash and the average sales price had plummeted to $67,010. Sales picked up in 2010 with 10 being reported. Three of these were investor-bought at an average price of $45,758. The other 7 were bought on either FHA (1), conventional (1) or USDA Rural Development (5) loans and were for owner occupants. The average price for these seven homes was $87,868.

So far in 2011 (as of 10/09/11), there have been 13 sales, 7 of which were to investors at an average price of $48,650, the rest going to owner occupants with an average sales price of $84,833. Many of the investor properties end up being rentals in the $800-900 range, but a few end of getting “flipped” to owner occupant buyers. The price disparity between investor purchased and owner occupant purchased homes shows that people are willing to spend more money for homes in better condition. If you don’t have the experience, time or money to do major renovations or big “DIY” projects, that is the way to go.

This neighborhood has become more affordable since the housing downturn, and with its location in Brighton Schools, the lower township property taxes, and a location that is great for commuters to Ann Arbor it has remained popular. Right now there are four for sale varying in price from $49,900 to $85,000. If I can assist you in your home search, please feel free to contact me via email or facebook.

I participated in a discussion regarding flood insurance recently at my office (Preview Properties, PC). Of course, with the redrawing of FEMA flood plain maps, there has been a lot of confusion for everybody involved – insurance agents, real estate professionals, surveyors, and consumers. The only party not confused seems to be the Federal Emergency Management Agency (FEMA).

Of Michigan’s 83 Counties, 59 will have re-drawn flood maps but right now only 22 have been completed. Here’s an interesting State statistic for Michiganders. For the years 1978 through 2009, $284.4 million dollars left the State in flood insurance premiums. In that same time, $45 million came back in the form of claims payments. Not a very good return for us as a State.

A few basics. Federal flood insurance covers only the structure, not personal possessions. Additional flood insurance policies are available through the National Flood Insurance Program (NFIP) and your homeowner’s insurance carrier for personal items, but that coverage is also quite limited or quite expensive. Rates are better if your municipality participates in the NFIP. As of 9/28/2011 there were no Livingston County listings, but Augusta and Ann Arbor Townships and the City of Ann Arbor were listed for Washtenaw County.

There’s a lot of talk about the 100 year flood, too. That doesn’t mean what some folks think it means, which is often that the area will flood once every 100 years. It actually represents about a one percent (1%) chance of a flood in any given year.

If your property is in a flood zone, you have to pay for flood insurance. Period. However, with the re-drawing of flood maps (still in progress for much of the nation – and parts of our State), some areas may not have been mapped properly and there could be properties that qualify for exemption. A Letter of Map Amendment (LOMA) will be needed, and this is definitely not something you want to do yourself. Your ability to acquire a LOMA will depend largely on the lowest point of your home’s exterior, and the best way to determine this to FEMA’s satisfaction is to have a surveyor come up with the elevation.

A surveyor experienced with flood insurance is your best bet. If they are certified to electronically file a Letter of Map Amendment (e-LOMA), this can be done in a very short period of time, a matter of weeks. This immediate help is available to properties in flood areas designated AE, or A1 through A30, because the base elevations of the area are known and an e-LOMA can be filed. If you’re in an ‘A’ designated flood area, it will take longer and require a physical package of documentation to be sent in to FEMA.

In some cases, a homeowner that is successful in getting a LOMA approved may be eligible for at least part of their flood insurance premiums paid for the last year or two. There are also other ways to get a LOMA approved, especially if your home is built on a crawlspace. This process is called a Letter of Map Revision-fill (or LOMR-f). Usually, you must have a landscaper install a clay berm around the low point of the house, it has to be 95% compacted, then covered with fill and landscaping. By changing the lowest adjacent grade (LAG) and installing flood vents in the foundation, a LOMR-f may successfully get you out of flood insurance.

The cost of this service which includes surveying and documentation submittal can run $600-$800, but at least one SE Michigan company will consult with you and only accept the full fee if they are able to help. That’s better than what many homeowners are paying every year for flood insurance. I’m happy to pass that info along to anybody that may need it, feel free to contact me via facebook, or phone.