Tammy Lehman

When is the Fed going to realize that what we really need is a cut in long term interest rates.

A more effective step would be to get 30 Year Fixed to around 5 percent. Doing this would entice home buyers into the marketplace and also would help refinancing for mortgagors get out of adjustable rate mortgages that caused this mess to begin with. Cutting short-term interest rates doesn't help fixed mortgage rates it only directly helps adjustable mortgage resets that are tied to Treasury indexes, not the LIBOR.

The local Chelsea real estate market has seen its downturn for nearly 2 years now, on average prices have dropped 8-20% per year since 2006. But finally the market is beginning to show a turnaround. Today there are 202 active homes on the market (202 Residential Homes, 111 Vacant Parcels, 32 Condos, 20 Commercial Properties, 0 Farms and 4 Businesses in total: 369 Active Listings in Chelsea) although the shear number sound terrifying that is the lowest it's been all season. Things are starting to move and I have had a great year thus far.

What does this mean for buyers? If you are a serious homebuyer, the absolute best time of the year to buy is between Halloween and New Year's Day. The reasons are that there are few home buyers are in the market during the holiday season so competition is low and lastly residential home and condo sellers who have their homes listed for sale now are usually highly motivated to sell and will listen to any reasonable offer. There is an additional special reason the 2008 holiday season is a great time to be a homebuyer. It's a "buyer's market". That means even during this slow holiday season, when most unmotivated sellers take their listings off the market, there are more homes listed for sale than there are qualified buyers searching for homes. With the continuing drop in interest rates the buyers that have been waiting around all season for that perfect deal or home are finally starting to realize that its time to buy.

My prediction for 2008 My prediction for 2008 is good if the activity that I have seen in the market in the recent month continues.

For those buyers that have nothing to sell there is no better time to be a homebuyer. With that said I have some terrific homes that are available with immediate occupancy.

28 Sycamore, Chelsea $135,900 with $2500 credit to buyer for closing by 11/28/08. 3 bedrooms, 1 ½ baths, 1688 Square Feet, 2 ½+ car attached garage, partially finished basement with egress window, family room with woodstove, living room with fireplace, updated kitchen. http://surovell.com/mls=2808078

15956 Gorton, Grass Lake (Chelsea Schools) $225,000. 3 bedroom 2 ½ bath, 2041 Square Feet, full walkout basement is plumbed for bath, built in 2006, living room with fireplace, cherry cabinetry throughout, corian counter-tops, 2 balconies, 2^nd floor laundry and a 2 ½+ car attached garage. http://surovell.com/mls=2809342

12894 McKinley Heights, Chelsea $124,900. 4 bedroom, 2 ½ baths, attached 2 ½ car garage, 2320 Square Feet, partial basement all on 2.5 Acres. http://surovell.com/mls=2809665

13693 W. Quail Hollow, Chelsea $319,999. Stunning 4 bedroom, 2 ½ bath home on 1.99 acres, built in 2004, 2396 Square Feet, 3 car attached garage, full walkout basement is plumbed for 3 piece bath, stunning heavily wooded acres backs to Inverness Country Club. http://surovell.com/mls=2810238

2859 Hayes, Chelsea Vacant 2.99 Acres $59,900. Rolling hilltop parcel is perked and ready for your dream home. http://surovell.com/mls=2809809

6541 Clear Lake Shores Unit #3 Condo $155,000. 3056 Square Foot, 4 bedroom, 3 full baths, 2 car attached garage, paved drive, 2 fireplaces, 2 kitchens, study, wrap around deck with lake views of Clear Lake, Chelsea Schools. http://surovell.com/mls=2810484

Additional properties also available in; Manchester, Grass Lake, Pinckney, Brighton, Howell, Dexter, Jackson, Fowlerville, Ann Arbor, Howell and Saline. These properties can be viewed at www.tammylehman.com

Housing statistics for the Ann Arbor Board of Realtors for September 2008

Average list price YTD (thru September 2008) at $232,076 down from $265,385 in September 2007

Average Sales price YTD (thru September 2008) at $220,089 down from $252,724 in September 2007

On a positive note vacant land prices YTD are up nearly $10,000.

Based on information from the Ann Arbor Area Board of REALTORS^® Multiple Listing Service for the period January 2007 through September 2008.

Prices have fallen mostly inpart to the large number of foreclosured homes that are being sold far below owner occupied home prices. On average a foreclosured home sells for 20-25% less than an owner occupied home.

HOPE is finally on the way for Homeowners.

Hope is a federal program to allow the replacement of up to $300 billion in delinquent mortgages with federally backed FHA financing. To qualify, mortgagors must have a debt to income ratio of more than 31%. Loans would have had to close prior to January 1, 2008.

The mortgage lenders must agree to participate and erase 10% of the home's current value before the government will guarantee the mortgage at 90%.

This program is a huge step in the right direction in stabilizing the housing market and will help keep many families in their homes.

Make sure you tell your troubled sellers of this program, especially those that feel that a short sale or foreclosure is their only option.

Yes my homes are selling. You ask why? Because I price them right from the start. It is surprising to hear from so many agents time and time again who say they are struggling to stay in the business. Surprising because I have had the best 2 years ever, I continue to grow my business time and time, even in this tough market.

Here are some tips for home sellers;

1) Price your home right, dont listen to a realtor who tells you your home is worth more than it is. Example: If you have 2 realtors in your home both with very different opinions on price dont go with the highest price. Why you ask? Because that Realtor is wanting nothing more than to buy your listing. Those of us who actually care about our reputation and our perception in the public dont need to buy your listing. If you have 2 very different prices get a 3rd opinion if needed.

2) Staging is absolutely imparative in this market. Buyers have no imagination. They will not buy a home that they have to repaint and refloor unless it is priced so far below market value that they determine it as a steal and are willing to put the money into it themselves and still come out on top. It has to be clean, clutter free, free of odors and in move in condition.

3) Pick the top realtor in the area. Their pool of buyers is much greater.

4) Pick a company that will provide advertising and marketing for your home. Dont pick an agent with a 100% company that will not invest in your homes advertising. Ask questions about what they will be providing you? How often will they advertise your home, etc.

5) Be flexible. Dont turn down any showing. If someone is sitting in your driveway calling your agent to ask if you can get in. Tell them absolutely, if you need to take 15 minutes to tidy up then do it but dont turn down any showing.

6) If you have absolutely no activity or activity with no offers or feedback is that the home is priced too high for the market. REDUCE YOUR PRICE to put it in a different price point. This will open up your home to a new pool of buyers