Scott Petersen - Canton - Plymouth - Real Estate

Market Update for Metro Detroit

Scott Petersen — Wed, 23 Nov 2011 00:53:00 GMT

O.K., are you ready for some good news for real estate in the Canton, Plymouth, Northville, and the Livonia area? October 2011 sales data from the local Multi-List Service was just released and there is good news. The market continues to strengthen. The long painful decline has taken a break for most markets in the Metro Detroit area. However, even though most of the news was good, the data also showed that Short Sales continue to rise. Realcomp, the local MLS reported this week that:

Residential and Condominium sales across Realcomp's MLS areas were up 6.1% from 4,902 in October 2010 to 5,199 in October 2011.
All MLS median sale price rose 8.2% from $67,000 in October 2010, to $72,500 in October 2011.
Of 5,199 sales closed in October of this year, 14.23% (740) were identified as short sales.

Scott A. Petersen
Client First, Realtors

www.scott-petersen.com

Market Update: Pheasant View, Canton MI

Scott Petersen — Wed, 08 Dec 2010 03:15:00 GMT

Pheasant View, Canton MI

Address	SF	Style	Yr Blt	BR/BTHS	$	DOM/CLSD	$/SF
On Market
1465 CROWNDALE LN	2653	Colonial	1996	4/2.5	249,000	2	93.86

Closed Sales
46512 OVERHILL LN	3229	Colonial	1996	4/2.5	250,000	8/31/2010	77.43
2024 STONEBRIDGE WAY	3109	Colonial	1996	4/3.5	280,000	7/2/2010	90.06
2012 CROWNDALE LN	3022	Colonial	1998	4/3.5	320,000	7/16/2010	105.89
2017 STONEBRIDGE	2800	Colonial	1996	4/3.5	317,000	6/18/2010	113.21
46733 SOUTHWICK DR	3150	Colonial	1996	4/3.5	285,000	3/15/2010	90.47
46585 SOUTHWICK DR	3133	Colonial	1996	4/3.5	329,900	4/9/2010	105.30

Key:

Address – Property Address

SF= Square Footage

Style= Artichture (ie. Colonial, Bungalow..)

Yr = Year Built

BR/BTHS = Number of Bedrooms/Number of Baths

$ = Current Asking Price or Sold Price

DOM/Clsd = Number of days on market/ Date closed

$/SF = Price per square foot

All Data from Realcomp MLS

Scott A. Petersen
Remerica Country Place

www.scott-petersen.com

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When you choose Scott Petersen and The Petersen Team to handle your Canton/Plymouth real estate needs, you choose a Realtor® who is not just an expert, but someone who really cares about you and your family. Buying or selling a home can be a very exciting and yet stressful. We will work to achieve your goals and objectives, bringing our years of industry expertise and old fashioned "blue collar" hard work. In this difficult market, we are proven producers selling in the multi-million dollar range year after year.

We are very familiar with today's market and specializing in Short Sales, REO, Bank Owned, and all types of real estate in Wayne County , Oakland County, Livingston County, and Washetenaw County we specialize in Canton, Plymouth, Northville, Livonia and Novi.

Disclaimer: I fully disclose that I am human and make errors, from time- to- time. Therefore, all information in this blog is deemed reliable but not guaranteed to be accurate. I reserve the right to make changes and/or correction of any information at anytime. I make no warranties either express or implied. This blog is not intended to offer any legal, tax or other advice. Please seek permission to repost or re-blog any part of this blog. I think this satisfies my attorney..

Christmas Fun

Scott Petersen — Tue, 30 Nov 2010 06:15:00 GMT

Looking for some fun Christmas Activities in and around Plymouth & Canton Michigan? Check out the following great events:

Greenfield Village Holiday Nights

Holiday Nights is one of my families favorite activities. Strolling caroling choirs, traditional historical Christmas food and drink, St. Nick, reindeer, and all of the village homes decorated to their period makes this a great evening.

December 4, 10-11, 17-23 and 26-27, 2010 (6:30pm - 10pm)

Pricing:
MEMBER ADULT age 13 & up, $14.50
MEMBER YOUTH age 5-12, $12.75
NON-MEMBER ADULT $17
NON-MEMBER YOUTH $15
CHILDREN 4 & under are free

Wayne County Lightfest

The lightfest is a nice drive along the scenic Hines Drive, featuring 17 new displays totaling 1 million lights! While the Lightfest is impressive with it's 1 million lights, the presentation is disapointingly almost completely secular offering dinosaurs and puppy dogs, but no angels or mangers.

November 18 - December 31, 2010
7:00 -10:00 pm (closed December 25) - Hines Drive
Visit the Midwest's longest drive-through holiday light display. Four miles of colorful lights for a $5/car donation. Enter off Merriman Road, between Ann Arbor Trail and Warren Avenue in Westland. For more information on this holiday spectacular or to register a bus/limo, call the Parks office.

Scott A. Petersen
Remerica Country Place

www.scott-petersen.com

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Glengarry Canton MI Update

Scott Petersen — Thu, 18 Nov 2010 13:06:00 GMT

Glengarry in Canton Township MI is a single family sub that was developed by Pulte from 1991 - 1996.

Year to date there have been 17 homes sold. The sale prices have ranged from 219,000 - 290,000, with an average sale price of $263,082 with an average days on market of 42 days.

Sales in Glengarry over the past 2 months are:

45030 GLENGARRY RD, 2375 SF, 1991 YR BLT, 3BR/2.2BA, $219,000, 9/10/2010 Closed

45389 SEABROOK DR, 2588SF, 1996 YR BLT, 4BR/2.1BA, $239,000, 9/29/2010 Closed

44887 WEYMOUTH DR, 2632SF, 1996 YR BLT, 4BR/2.1BA, $285,000, 10/22/2010 Closed

45277 SEABROOK , 2601 SF, 1995 YR BLT, 4BR/2.1BA, $290,000, 09/17/2010 Closed.

There are currently four houses listed in Glengarry:

459 FAIRFIELD CT, 2895 SF, 1994 YR BLT, 4BR/2.1BA, $239,900, 76 Days On Market

45184 GLENGARRY RD, 2438 SF, 1991 YR BLT, 4BR/2.1BA, $259,900, 83 Days On Market

45379 WILLIAM CT, 3053 SF, 1992 YR BLT, 4BR/3.1BA, $279,900, 76 Days On Market

44967 WEYMOUTH, 2695 SF, 1997 YR BLT, 4BR/2.1BA, 279,900, 89 Days On Market

If you are looking to Buy or Sell a home in Canton choose:

Scott Petersen and The Petersen Team to handle your Canton/Plymouth real estateneeds, you choose a Realtor® who is not just an expert, but someone who really cares about you and your family. Buying or selling a home can be a very exciting and yet stressful. We will work to achieve your goals and objectives, bringing our years of industry expertise and old fashioned "blue collar" hard work. In this difficult market, we are proven producers selling in the multi-million dollar range year after year.

We are very familiar with today's market and specializing in Short Sales, REO, Bank Owned, and all types of real estate in Wayne County , Oakland County, Livingston County, and Washetenaw Countywe specialize in Canton, Plymouth, Northville, Livonia and Novi.

Scott A. Petersen
Remerica Country Place

www.scott-petersen.com

Ring The Bells

Scott Petersen — Tue, 02 Nov 2010 15:40:00 GMT

I really believe in the Salvation Army and their mission. I support and assist the Army in their fundraising which does many good things for our community including:

•Providing school supplies to children of need in the Fall

•Running a food bank though out the year

•Providing financial support throughout the year for families that need help with rent, utilities...

Ever wonder who the people are that are out ringing the bells? They are people like you. If you would like to sign-up to ring this holiday season and help the Salvation Army, read the Salvation Armies release below:

"The Plymouth Corps' 2010 Red Kettle Campaign begins in only 3 weeks and we are looking for volunteer bell ringers for this year's campaign. We ring bells in the Northville, Plymouth, Canton and Belleville communities. The campaign begins on Friday, November 12, 2010 and ends on Christmas Eve. The kettles will be out from 10am to 8pm, Monday through Saturday. We ask our volunteers to sign up for a 2 hour shift. Just visit or Corps' website http://www.misalplymouth.org or http://www.ringbell.org and sign up. It is super easy and after making your selections, you will receive a confirmation email, as well as a reminder email a few days prior to your bell ringing dates."

I will be out ringing.... Will you join me?

When you choose Scott Petersen and The Petersen Team to handle your Canton/Plymouth real estate needs, you choose a Realtor® who is not just an expert, but someone who really cares about you and your family. Buying or selling a home can be a very exciting and yet stressful. We will work to achieve your goals and objectives, bringing our years of industry expertise and old fashioned “blue collar” hard work. In this difficult market, we are proven producers selling in the multi-million dollar range year after year.

We are very familiar with today’s market and specializing in Short Sales, REO, Bank Owned, and all types of real estate in Wayne County , Oakland County, Livingston County, and Washetenaw County we specialize in Canton, Plymouth, Northville, Livonia and Novi.

October 2010 YTD Sales Data

Scott Petersen — Wed, 27 Oct 2010 15:13:00 GMT

Realcomp MLS has release the sales data statistics for the month for Metro Detroit. If you find stats and numbers interesting this may be of interest to you. The official analysis release states:

MEDIAN SALES PRICE CONTINUES CLIMB WHILE ONMARKET INVENTORY LEVELS DECREASE FURTHER

PRICES BUOYED BY HIGH NONFORECLOSURE SALES.

On‐market inventories continue to decline in most areas
NON‐foreclosure sales outpaced foreclosure sales (3,127 non‐foreclosure sales vs. 2,095 foreclosure sales)
Average days on market decreases include: ALL MLS decreased by 9 days to 94; Metro Detroit decreased by 11 days to 90.

48187 CANTON, Michigan has 232 active homes for sale on market. Homes sold YTD: 369, which is a -2.08 year over year. The median sales price is $144,900, which is a - 15.05% year over year.

48188 CANTON, Michigan has 276 active homes for sale on market. Homes sold YTD: 428, which is a 13.64 increase year over year. The median sales price is $164,780, which is only a - 2.3 %, year over year.

48170 PLYMOUTH, Michigan has 257 active homes for sale on market. Homes sold YTD: 345, which is a -11.36 % decrease year over year. The median sales price is $179,250, which is a + 14.00 year over year!

When you choose Scott Petersen and The Petersen Team to handle your Canton/Plymouth real estate needs, you choose a Realtor® who is not just an expert, but someone who really cares about you and your family. Buying or selling a home can be a very exciting and yet stressful. We will work to achieve your goals and objectives, bringing our years of industry expertise and old fashioned “blue collar” hard work. In this difficult market, we are proven producers selling in the multi-million dollar range year after year.

Disclaimer: I fully disclose that I am human and prone to errors, from time to time. Therefore, all information in this blog is deemed reliable but not guaranteed to be accurate. I reserve the right to change, make corrections, and changes of any information at anytime. I make no warranties either express or implied. This blog is not intended to offer any legal, tax or other advice. I think this satisfies my attorney J.

Scott A. Petersen
Remerica Country Place

www.scott-petersen.com
spete05@gmail.com

Fall Fun

Scott Petersen — Wed, 20 Oct 2010 14:13:00 GMT

Looking for some a Fall Fun event this weekend? Visit Three Cedars Farm at 7897 Beck Rd, in Northville MI. This is a great little farm that has lots of Fall activities.

7 Corn Mazes
U Pick Pumkins
Cider & Donuts
Harides
Country Store
Bonfires

Scott A. Petersen
Remerica Country Place

www.scott-petersen.com
spete05@gmail.com

Short Sale Basics

Scott Petersen — Mon, 27 Sep 2010 15:43:00 GMT

A few years ago, terms like "short sale," "upside down," and "under water," were not even part of our lexicon. Today, they are common place. Following some 15 years of steady appreciation, peaking in 2006, home values in Michigan have since declined 45% on average. In Oakland County, distressed sales now account for approximately 93% of all home sales. If a short sale becomes your only option, here are some basics to keep in mind.

1. A short sale results when the seller owes more money on the mortgage than the home is worth.As a result, the seller is forced to negotiate a discounted payoff of the underlying mortgage debt with the mortgage lender in order for the sale to take place. Sellers want to avoid having to pay money against the mortgage at closing and to obtain a waiver of any deficiency. Buyers want clear title and a quick closing.

2. It is absolutely essential that a short sale contingency be included in the listing agreement for the property and in the purchaser agreement.Such contingencies will provide that the sale is contingent upon the ability of the seller to negotiate a short sale with its mortgage lender upon terms and conditions that are acceptable to seller, in seller's sole discretion. If the seller is unable to get such an approval, the purchase agreement can be terminated, buyer's deposit refunded, and seller has no obligation to the realtor under the listing agreement.

3. Mortgage lenders have very specific, detailed and comprehensive procedures that must be followed, exactly, in order for a short sale to be considered.Substantial documentation must be provided, and there must be full and accurate disclosure on the part of the seller. Failure to accurately disclose such things as hardship, income and assets, may result in the short sale being later set aside on the basis of fraud. The process is detailed and time consuming (as long as 6 months or more), ultimately resulting in either the rejection of the request or a statement of the terms upon which the mortgage lender will agree to the short sale.

4. Mortgage lenders are not required to waive the balance owing on the mortgage. They may require that some, or all of it, be paid by the seller at closing, or that the balance owing will remain payable by the seller under the original mortgage note or a new promissory note.

5. A short sale will impact the seller's credit rating and may adversely impact the ability to obtain certain types of mortgages in the future. And, any part of the loan deficiency that is forgiven must be reported by the mortgage lender to the IRS on Form 1099-C. Whether or not the forgiven debt is taxable depends upon a number of factors, including whether or not the home was the borrower's principle residence, when the forgiveness took place, and so on.

Based upon historic trends, many believe that it will take another ten years or more for homes to regain the value that has been lost in the past 4 years. Distressed sales (short sales) are therefore a fact of life that will be with us for years to come.

USED WITH PERMISSION

Duane L. Reynolds
Wright Penning & Beamer

_____________________________________________________________________________________

When you choose Scott Petersen and The Petersen Team to handle your Canton/Plymouth real estate needs, you choose a Realtors® who is not just an expert, but someone who cares about you and your family. Buying or selling a home can be a very exciting and yet stressful. We will work to achieve your objectives, bringing our years of expertise and hard work. In this difficult market, we are proven producers selling in the multi-million dollar range year after year.

We are very familiar with todays market and handle Short Sales, REO, Bank Owned, and all types of real estate in Wayne County , Oakland County, Livingston County, and Washetenaw County we specialize in Canton, Plymouth, Northville, Livonia and Novi.

Scott A. Petersen
Remerica Country Place

www.scott-petersen.com
spete05@gmail.com

Cash is King!??

Scott Petersen — Wed, 22 Sep 2010 16:04:00 GMT

I can tell within about 60 seconds of speaking to a Buyer, whether they have been listening to Real Estate investing gurus or watching TV news articles about how to buy foreclosed properties cheaply. Usually the "educated" buyer will begin using the phrases, "I have cash and cash is king", "banks want to move these properties", "fifty cents on the dollar" tip me off to what usually ends up being a failed offer.

A few weeks ago I received a call from an interested buyer that wanted to view a foreclosed property that I had just listed. After meeting the buyer at the property, he started dropping some of the aforementioned phrases. The buyer went on to explain to me that he knew banks want to get rid of their inventory and he had cash and wanted to offer $25k less than the $75 asking. After spending considerable time attempting to re-educate the Buyer, I relented and wrote their $50k cash is king offer.

Within a few days of this property being listed we had multiple offers, as is the case on nearly every REO listing. The bank sent all offers back for highest and best. Most of the offers were improved, except for "Cash is king" buyer. This buyer learned the lesson, that cash may be king but only with offer amounts that have some parity. I can say from multiple experiences that Banks are not going to take a 1/3 haircut for cash.

Here are some observations that I have observed:

A cash offer will not trump even a conventional mortgage with a superior offer amount. Cash is only king if the offer amounts are nearly equal.
When it is said that banks are selling their properties for fifty cents on the dollar, it means that they are selling the property for .50 on the dollar from their previous values. Banks will not entertain"low ball" offers on a property that has only been on market for 5 days.
Banks, in my market, are competitively pricing their properties at or below market value.
Banks are patient and will wait to get the closest offer to market value.

Scott A. Petersen
Remerica Country Place

www.scott-petersen.com
spete05@gmail.com

ReStore

Scott Petersen — Thu, 02 Sep 2010 03:02:00 GMT

I visited for the first time a Habitat for Humanity, ReStore near me in Ann Arbor Michigan. I was surprised to find a warehouse full of gently used building materials from doors, windows, paint, toilets, sinks, to lighting. Next time you need to replace that door... stop by a ReStore and check out their supply.

If your garage is full of building items that are left from past projects, ReStore will give you a tax receipt for those items. The best part is that the proceeds go towards Habitat's efforts.

http://www.habitat.org/cd/env/restore.aspx

When you choose Scott Petersen and The Petersen Team to handle your Canton/Plymouth real estate needs, you choose Realtors® who care about you and your family. Buying or selling a home is always more enjoyable when you work with professionals who will listen to your needs and who will work together with you to achieve your objective. We are very familiar with all types a real estate in Wayne County , Oakland County, Livingston County, and Washtenaw County we specialize in Canton, Plymouth, Northville, and Novi.

Scott A. Petersen
Remerica Country Place

(734) 776-8355 cell
(734) 981-2900 office

Remerica Country Place
44205 Ford Rd.
Canton, MI 48187

www.scott-petersen.com
spete05@gmail.com

Unwilling Landlords

Scott Petersen — Tue, 31 Aug 2010 03:25:00 GMT

Many Sellers are becoming unwilling Landlords and renting their homes because the home does not sell for what they owe or what they are convinced they need to get. I have been a willing Landlord for over 13 years and have learned a few things about being a Landlord. If you find yourself in a situation where you need to rent your home, here are some steps that you need to pay close attention to:

Check with the municipality where the home is located for any additional inspections and licenses that will be required to lease the property.
If there is a mortgage on the property, check to see if your mortgage note will allow for the property to be rented. Many mortgage notes prohibit renting the property. If the mortgage company becomes aware of the home being converted to a rental, they could call the note due and demand immediate payment.
Locate a strong Landlord Lease. Not all leases are created equally. Also, you will need to have the Federal Lead Based Paint Disclosure form and pamphlet on hand.
Research your state's Deposit Law. You will need to know what your state allows for deposits. In Michigan, where I am located, our law only allows a maximum of 1½ months of the rent to be held as security deposit.
Screen, screen, screen prospective tenants. Selecting the right tenant will determine your stress level over the coming months. Use a good Tenant Application that gives you the ability to run a credit report of the prospective tenant. I recommend that you check the credit report of each prospective tenant and check past landlord references. Rush or skip this step and you will become very familiar with the eviction process.
Prepare yourself to be a Landlord. Be ready for calls that the: hot water tank is leaking… on Christmas Eve, furnace quit on your daughter’s birthday, or rent will be late this month.
If, after reading this, you still are resolved to lease your property, but do not feel you have the time or skill sets needed to be a landlord, I strongly recommend that you use the expertise of a Realtor© that is experienced in leasing properties. Additionally, you will need to locate a Property Manager. Ask your Realtor© for a reference. Most property managers charge 10 percent of the monthly rent to handle the details that I outlined above and can reduce the management stress that accompanies being a landlord.

Soak the Banks

Scott Petersen — Sat, 10 Apr 2010 05:02:00 GMT

New ordinances are sweeping through local governments that are targeting Bank Owned properties. The city of Livonia Michigan adopted ordinance #2844 on October 8, 2009, the Township of Canton Michigan adopted a similar ordinance #79 on January 12, 2010, while Plymouth Township adopted Ordinance C-2009-08 on June 23, 2009. The reported purpose of these ordinances are to reign in banks maintenance and care of their properties, while in their inventory. Many of these bank owned, vacant and abandoned registration ordinances require the owner to register the property with the city as being vacant and pay a fee for the registration. This fee and registration supposedly reimburses the cities for their increased policing of blight enforcement against these properties. Additionally, several cities are requiring special inspections for vacant properties before they can be reoccupied. Of course, there is an additional fee for this special inspection of up to $500.

In a real sense banks have brought this upon themselves. Neglected bank owned homes with foot high grass, unsecured doors, and green pools were common in the past few years. Local communities fought a relentless fight to determine which bank owned the derelict properties. In addition, banks are flush with bail-out money, while local communities struggle to make payroll. The city of Livonia, Michigan recently enacted their ordinance in late 2009 and has already registered 137 bank owned and vacant properties. By my calculations, this has netted Livonia approximately $60,0000 for the first six months of the program.

While everyone I know does not mind soaking the banks, these ordinances are also potentially hurting every sale and homeowner. Let me explain. To not directly target the banks for these fees and increased scrutiny, many of the ordinances simply target vacant properties. For example the City of Livonia's ordinance include several definitions that would include non-bank owned properties into their ordinance program. Several of the definitions that I believe will affect sellers are:

· A Single Tenant building that has been vacant for more than twenty eight (28) days.

· Has Utilities that have been disconnected or not in use.

· Demonstrates a lack of property maintenance as evidenced by one or more violations.

The first issue that homeowners and sellers may have is that one of the definitions of a vacant home is one that has been unoccupied for 28 days and/or has not used utilities. This means that if a seller has to move out of their home 30 days prior to closing for any reason, their home must be registered and the fees paid. So, if a seller is transferred to another city and moves before closing, their home must be registered.

Additionally, I do not see any provision in many of these newly drafted ordinances exempting homeowners that are snowbirds. In Michigan we have a large population that travels to warmer destinations for the long winter months. Most of these homeowners vacate their homes for longer than 28 days. After my reading of the ordinances of many cities, these homeowners would be required to register their homes and pay the fees.

Now this is not just an exercise for me to find the pitfalls of legislation. I have a current deal that has been swept up into this new ordinance. My clients listed and sold their home with a Short Sale with me that we closed on three weeks ago. As with all Short Sales the duration of the sale was very lengthy. From accepted offer to closing was about 120 days. The sellers had to partially move to a new location due to an illness in their family 40 days prior to closing. The sellers kept all utilities on, maintained and visited the home regularly, as well as kept some contents in the property. This was not a neglected or abandoned property.

The first sign of trouble was two days after the new buyer purchased the home, the city placed a bright orange sticker on the door that proclaimed the occupant of this house is occupying the property illegally and could face misdemeanor charges and be evicted. Defiantly not the welcome you are looking for. When I received the frantic call from the Buyers Agent I was very confused as to why the city was threatening the new homeowner, as this city does not have any type of pre-sale inspection or Certificate of Occupancy.

After talking to several city employees, I was told that the home was reported as vacant and would have to comply with the new ordinance. After many of hours on the phone it seems that the bank that was shorting the property registered the property with the city as being vacant. The banks explanation is that only 30% of short sales are being closed, so they register all properties that are in default even if they have not been foreclosed on yet. In addition, the fines for not registering the properties are $500 for each occurrence on to top of the fees, so registering properties before they are foreclosed only protects the banks.

The ordinance department is not relenting on the fee's because they claim, "we are bound to charge these by the ordinance". So in the cities attempt to soak the banks, they are soaking individuals that are buying their first home, or sellers trying to do the right thing and not allow their home to fall into foreclosure. If cities continue to enforce these ordinances against properties that are not abandoned or neglected, I believe that we will see more sellers simply allow their homes to foreclose, and we will see a second wave of bank owned homes. This will cause a further erosion of home values and not just soak all of us, but may drown us in the process.

Scott A. Petersen

Realtor

Remerica Country Place

(734) 776-8355 cell

(734) 981-2900 office

(734) 736-1114 fax

44205 Ford Rd.

Canton, MI 48187

www.scott-petersen.com

spetersen@remerica.com

Buyer Tax Credit

Scott Petersen — Wed, 03 Jun 2009 01:00:00 GMT

The annoucement recently that the 10% Buyer Tax credit - up to $8000 will be allowed to be applied towards the down payment. This should really help buyers that do not have the downpayment.

"The Federal Housing Administration (FHA) laid out the details of a new policy [Mortgagee Letter 2009-15] on Friday that will allow first-time homebuyers to apply the $8,000 federal tax credit toward the purchase costs of an FHA-insured home. HUD Secretary Shaun Donovan said he expects the action to stimulate home sales across the country.

The American Recovery and Reinvestment Act of 2009, enacted under President Obama, offers homebuyers a tax credit of up to $8,000 for purchasing their first home before December 1, 2009, but the credit can only be accessed after filing an amended tax return with the Internal Revenue Service (IRS). However, the new FHA rules allow first-time homebuyers using FHA-backed financing to obtain a short term loan from state housing finance agencies and certain non-profits for 10 percent of the home's price, up to the full amount of the tax credit."

Are we there yet?

Scott Petersen — Tue, 05 Aug 2008 15:45:00 GMT

When I am traveling with my children, the phrase "Are We There Yet" is muttered several times during the trip. This question is asked, just as it has been obligingly asked for hundred maybe thousands of years. However, now I am hearing it from my clients, "Are We There Yet?" Are we at the bottom of the market yet? From my vantage point this summer could be defined as the season we hit the bottom for this Real Estate Market. I am seeing 3-12 offers per house on Bank Owned properties. This tells me that there are buyers out there.. they are just looking for bargains. Who can blame them with as many deals as there are on the market. There are three streams joining together to create the RIVER that is washing away the value of Real Estate in this Michigan market:

1. Auto industry uncertainty and decline. Job loss = population decrease = vacant properties = lower sales prices. It's that simple. High gas prices are compounding this issue.

2. Mortgage Crisis. The few buyers that are in the market are finding it very difficult to get approval for a mortgage.

3. High Inventory of homes. The record number of Bank Owned foreclosed homes are causing a bidding war to the downside as banks compete with other banks to rid themselves of their inventory. Banks have no magic number as many homeowners do.. as to what they MUST sell their home for. To the banks the home is just one of hundreds in a portfolio that must be liquidated at all costs.

If one of these streams can be dammed, we will see improvement. If all three can be stopped, a true rebound will start immediately. With the good news oil prices dropping along with commodities, hopefully we will see the first stream improve. The other two may take longer, but there is hope that this may be our exit and we may be there and not know it yet.

Homes Are Selling!

Scott Petersen — Tue, 10 Jun 2008 04:09:00 GMT

Contrary to what many people are thinking, homes are selling! Now, many are Bank Owned and REAL DEALS. But, homes are selling. In fact it was reported by the AP today that "Pending home sales unexpectedly increased in April to the highest reading since October, an industry group said Monday, but they remain more than 13 percent below a year ago.

The National Association of Realtors’ seasonally adjusted index of pending sales for existing homes rose to 88.2 from a March reading of 83.0, the lowest since the index was started in 2001. The index stood at 101.5 in April 2007.

Wall Street economists polled by Thomson/IFR had predicted the index would remain steady at 83.

NAR Chief Economist Lawrence Yun noted that pending sales contracts have ticked up in areas with the largest price declines such as Detroit and Las Vegas.

“Bargain hunters have entered the market en masse,” he said. “Sharp price reductions are leading to a quicker discovery of price equilibrium points.”

Yun forecasts that the median price of an existing home will drop 8.4 percent in the first half of the year before stabilizing. In 2009, prices will rise 4.4 percent to $213,900, he predicts.

Existing home sales this year are expected to total 5.40 million and then increase to 5.74 million next year, Yun said."

This may very well be the bottom that we have been looking for... If it is, it will be all up hill from here!

2 Story For Sale in Wayne County Sub No. 8

Scott Petersen — Thu, 14 Feb 2008 19:05:00 GMT

• 1,583 sq. ft., 2 bath, 4 bdrm 2 story - MLS® $177,900

Wayne County Sub No. 8, Westland - Looking for that perfect house? Look no more! This incredibly maintained home ON A QUIET STREET features: New VINYL SIDING (LFTIME WARR), NEW 50 YR ROOF, NEW FURNACE & CENT. A/C, NEW REMOD KIT., ANDERSON WINDOWS, NEW GARAGE DOOR, NEW HOT WAT HEAT., REFIN. HD WD FLRS, ULTIMATE KID BACKYRD W/TREE FORTS, FIN. BSMT... THE LIST GOES ON AND ON. SHOWS WELL! BA TO VERIFY ALL INFORMATION.

Property information

Invest in Foreclosures

Scott Petersen — Sat, 11 Aug 2007 15:55:00 GMT

It is hard to miss plethora of foreclosures in Michigan and beyond. Banks are becoming increasingly willing to sell these properties cheaply to get the non-performing mortgages off their books. Here are a few tips that I have personally learned in investing in "REO" bank foreclosures.

(1) The asking price is just the asking price. Don't be afraid to offer much less.

(2) Don't underestimate your costs in owning the property. Objectively estimate repairs, fees, holding costs (taxes, insurance, utilities). Bring in contractors early to help with this process.

(3) Know what your "After Repair property Value" will be.

(4) Have mutilple "EXIT" strategies. Be open to selling, renting, selling on land contract.... the more options you have, the better off you will be.

If you have any questions regarding starting to invest in real estate don't hesitate to call or e-mail me.

Get Creative

Scott Petersen — Sat, 11 Aug 2007 15:14:00 GMT

When you think of the word creative, real estate is probable not the first thing that comes to mind. However, creativity is a big part of real esate, especially today! I am finding the smart buyers and sellers of real estate today are finding creative ways to buy and sell their homes. Here are some of the creative ideas I am seeing:

SELLERS

6 Months Free! I will pay your mortgage for 6 months.
Free Flat Screen TV to buyer
Lease to Own my home! Lease it for a year and then I will help you buy it!
I will pay for closing costs.. buy this home and it will cost you nothing!
$3000 bonus to Realtor who sells my home in the next month!
Seller will look at all offers between $180,000 - $230,000

BUYERS

Land Contract and Lease Option are back for buyer who can't get approved for a mortgage just yet.
Getting all the closing costs paid for
Asking for repairs to be made.

SHORT?

Scott Petersen — Sat, 11 Aug 2007 14:24:00 GMT

Listing after listing in today's market reads, "Subject to Short Sale". I have taken this term for granted for years, as it has been a popular technique for investors to buy homes. Rrecently, however someone called me and asked, "what is a short sale" and I realized that Realtors were making the simple complex again. So, I will attempt to define Short Sales, simply.

A short sale is nothing more than an agreement from a mortgage company to forgive a portion of a loan to allow it to be sold before being foreclosed on.

Many homeowners in this market are selling their home while asking for short sales from their mortgage companies, The short sale allows the homeowner to list and sell their home for it's current value. Many ask why would a mortgage company forgive $10,000 - 100,000 from a loan through a short sale. The answer is it is good business. The average loss to a mortgaege company for a foreclosure is $80,000. So, if a mortgage company can short sale a loan for $50,000, they just saved $30,000. For the seller who receives a short sale, their credit is damaged less from a short sale than a foreclosure, and for the buyer they purchase a home for the current value or less. So, short sales can be a "win-win" for all. This is why many listings in this declining valuation market are being sold "Subject to Short Sale".

FHA Bonus

Scott Petersen — Mon, 16 Jul 2007 04:09:00 GMT

A few days ago I blogged about FHA mortgages and how I felt that these mortgages would be the wave of the future for borrowers with tight credit. I thought I would add another bonus to FHA that I did not mention. I receive a lot of calls and e-mail from people that are wanting to purchase a REO (bank owned) home that needs work. Through FHA, there is a program to receive the funds needed to purchase the home, as well as repair and rehab the home. The program is called 203k. The 203K program is administered through HUD and is designed for homes that need to be rehabilitate. This is a little known program that can be difficult to apply for and comply with. To cut through the red tape, I recommend using a 203k consultant who is approved by HUD who will assist with receiving quotes from contractors, applying for the loan, and complying with the guidelines. This service is well worth the $500-600 fee. The 203K is the perfect loan for someone looking to purchase a REO that needs to be repaired. Contact me for more information about this program.

NEW LISTING: 33490 Kirby in Farmington Acres

Scott Petersen — Sat, 14 Jul 2007 18:53:00 GMT

Farmington Acres, Farmington Hills - Announcing a NEW LISTING on 33490 Kirby, a 2,532 sq. ft., 2 bath, 4 bdrm 1 1/2 story. Now MLS® #27127865 $215,000 - Like New Construction!.

Property information

Not your Fathers FHA

Scott Petersen — Tue, 10 Jul 2007 16:08:00 GMT

When you hear the words FHA mortgage, most people think of a mortgage process nighmare from years past. Like with everything times change.. and so do mortgage products. I believe that FHA may be the mortgage choice of many in the future. Many buyers today are not qualifying for loans due to the Sub Prime collapse. In the past few years, mortages for buyers with 500 fico scores and no documentation were common. Today, this is almost impossible. So, what do buyers with recovering credit to do? Go FHA! Today's FHA is not based on a credit score. 480, 500, 550.... it doesn't matter. The only factor FHA mortgage underwriters look at are debt to income and open collections. So, if a buyer with a low fico score because of a job loss a year ago applies for a FHA mortgage, as long as there are no open collections and the debt to income ratio is 31/43 the loan is approved. The greatest thing about the new FHA's is the interest rate, which is usually only 1/4 point higher then conventional mortgages. This can save a borrower thousands over the term of the loan. The new FHA also have relaxed the inspections as well. This is definately not your fathers FHA!

Open House 2-4PM on Sunday, 20029 Rensellor in Livonia

Scott Petersen — Tue, 19 Jun 2007 03:24:00 GMT

Argonne Subdivision, Livonia - We invite everyone to visit our open house at 20029 Rensellor on June 24 from 2:00 to 4:00 PM.

Property information

Happy Birthday Canton IKEA

Scott Petersen — Fri, 15 Jun 2007 15:52:00 GMT

The Canton IKEA turned 1 year old this month. Canton has increasingly become known as the IKEA town. Personally, I have enjoyed having IKEA here. More and better restaurants have emerged along with other retailers. Surprisingly, the traffic has not seemed to be worse than pre-IKEA.. So, in my book IKEA you are welcome and happy to have you.

LIBERTY FEST

Scott Petersen — Thu, 14 Jun 2007 21:46:00 GMT

School is out and it is time for the Liberty Fest already. Liberty Fest means summer has arrived to me. Parades, the festival, and fireworks. If you haven't been to the Liberty Fest you need to go. It is a quality festival put on by Canton Parks and Rec. The dates and times this year are:

Fri. June 15: 1 p.m. – dusk
Sat. June 16: 11 a.m. – dusk

Go to their website for more info: http://www.canton-mi.org/libertyfest/index.asp