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The Bittinger Team in Canton, MI Help “Distressed” Homeowners Avoid Foreclosure Using Short Sales!

alsted — Thu, 20 Nov 2008 03:01:05 +0000

The Bittinger Team, Realtors with RE/MAX Classic in Canton, MI, stay ahead of the pack in this topsy turvy Real Estate market by proficiently helping ”distressed” homeowners avoid foreclosure by successfully navigating them through short sale procedures with their lenders.

Due to declining values and other reasons, the Real Estate market has literally been turned upside down with homeowners owing more on their homes than what those homes are worth. These distressed homeowners are confronted with the agonizing decision of how they should proceed… Foreclosure or Short Sale??

It’s no surprise that the Foreclosure and Short Sale process has caused much confusion in the community with homeowners and even with Realtors and Real Estate attorneys. “There is definitely more misinformation than information on this subject” states Kelly Adkins, Realtor with The Bittinger Team.

What is a Short Sale?

A “Short Sale” is a relatively new phrase to many homeowners, but this type of sale has been part of the real estate market for many years.

A homeowner is “short” when the homeowner owes an amount that when combined with closing costs and commission is higher than current market value.

A Short Sale occurs when a negotiation is entered into with the homeowner’s lender to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is “sold short”.

With a successfully negotiated short sale the seller won’t get any money at closing, but they will avoid the emotional toll a foreclosure can cause. In addition, the seller won’t have to come to closing with any money and their credit won’t be destroyed.

This sounds easy enough, however it is an involved process that takes time, patience, good communication skills, organization and professionalism.

Every Realtor Member of the Bittinger Team; Lee Bittinger, Noel Bittinger, Kelly Adkins, LeaAnn Malmin and Debbie Louiselle has become a CERTIFIED DISTRESSED PROPERTY EXPERT (CDPE). This means they each understand the Short Sale and Foreclosure process thoroughly. They specialize in the sale of distressed properties and can assist both buyers and sellers. They can quickly assess any situation and be able to suggest which strategy is best for a homeowner to avoid foreclosure. Each agent attended an intensive two-day seminar and countless webinars to earn this kind of designation. They are 5 of only a handful of Realtors in the entire Detroit metropolitan area who hold this new designation. “We’re educating ourselves constantly because things are changing so fast.” said Noel Bittinger.

In addition to holding the CDPE designation, they have sold over 75 homes on short sale just in the past 1.5 years. It is invaluable to find a real estate agent who has the capability and knowledge to quickly sell your home in these devastating and heart-breaking situations.

“In today’s market, agents cannot simply place a for-sale sign in a front yard or hold a house open to sell a house” states Noel Bittinger. “Currently there is an increasing need for skilled and knowledgeable agents to work with homeowners who are in over their heads and want to make a short sale to avoid foreclosure or even bankruptcy. Unfortunately, many of the short sale transactions are being handled by untrained salespeople who are doing more harm than good because they are getting nowhere with the lenders. When you are dealing with financial distress, it is a totally different procedure. It is not longer about numbers, it is about saving lives. The Bittinger Team has the tools, information and tactics needed to help a distressed homeowner understand their options as they face the threat of foreclosure. Help means talking with lawyers and financial experts, and negotiating with the lenders who hold these troubled loans.”

“This is a very difficult time for these homeowners; they need more consulting and hand holding than the average homeowner. We help them understand the process and what their best options are. They don’t know where else to turn.” states Noel Bittinger.

“What they most appreciate is that our conversations about their personal situation are kept very confidential, as this is a very humbling experience for many.” said Lee Bittinger.

“When every other homeowner who was contacting us to list their home was in an upside down situation, we realized that we better get ourselves educated thoroughly on this process to help these families keep their credit clean by avoiding foreclosure.” states Lee.

“Much of the time, I don’t feel like a Realtor,” Noel said. “I feel more like a counselor and an accountant and an attorney all rolled into one. There’s a whole lot of crying going on out there with these struggling owners. They break your heart.”

To most agents a short sale is such a mysterious thing,” Lee says. “Most of the Realtors don’t want to bother with them because they’ve heard so many horror stories. They are basically afraid of them.”

A recent story, a Farmington Hills agent put an offer from a buyer and did not hear back from the bank for five months, tying up the deposit that long. Ultimately, the bank foreclosed. This was due to lack of proper follow up and incomplete paperwork. “It can take up to 60days for lenders to give final approval for a short sale”, Lee said. “It requires a ton of paperwork and it can be very frustrating for both buyer and seller.”

Another story is about an attorney who advised a distressed homeowner to declare bankruptcy rather than to go through a short sale or a foreclosure. “While bankruptcy may be a better option than foreclosure, it will still cause divesting damage to the homeowner’s credit report. It will stay on for years and many times it can lead to foreclosure anyhow. Upon analyzing this homeowner’s situation we determined that he is very qualified to do a short sale, yet his attorney actually told him that nobody should do a short sale.” States Lee.

Not every homeowner can do a short sale. Sellers must be able to demonstrate a financial hardship like job loss or mounting medical bills, etc.

“Many times, all this counseling and help ends up in no sale. But it’s a wonderful feeling knowing you have helped one more family stay in their home” said Lee.

The Bittinger Team is reaching out to all local families in distress. Call them today! They can quickly help get you on the right path to recovery for the future during these painful times.

The Bittinger Team

When Trust and Experience Matter

(734) 459-2600

Join the thousands of home buyers who are seeking great bargains on fantastic homes within the 6 counties of Southeastern Michigan! The Bittinger Team has recently partnered up with www.bestmichiganhouses.com to provide a valuable resource to the community. Join now! These deals will not be around forever!

Canton and Plymouth Michigan Residents are Selling Their Homes Faster!

alsted — Thu, 18 Sep 2008 20:52:17 +0000

Canton and Plymouth, Michigan home-sellers have learned some powerful staging tips that assist in getting their homes sold fast! Your home value will significantly increase and prospective buyers will be begging to purchase your home. Now that your home has curb appeal, the heart of your home requires just as much if not more attention than the outside of your home. Here are some inexpensive ways to get your home sold fast!

Grimy bathroom walls are a major red flag to buyers.

Here is an easy way to get rid of surface mold: Mix a spray bottle with one part bleach and one part water. Just spray it on the wall, and watch the mold disappear. Give it a fresh coat of paint and your grimy bathroom will go from red-flag to red-hot.

Don’t replace a yucky shower door — just scour it.

A grimy glass shower door can really wash out your sale. Instead of replacing it, clean it with a mixture of one part muriatic acid and about 10 parts water. Scrub with steel wool. After wiping it down, reinstall the door and you’ll have a shower that’ll help you clean up at the open house.

Avoid dated tile by painting.

Bathrooms sell houses, but dated tile in a bathroom doesn’t. A low-cost alternative to replacing the tile is to use paint. First coat the tiles with a high-adhesion primer. Next, brush on a special ceramic epoxy covering. For a fraction of the cost of new tile, you will have an up-to-date bathroom that brings in big bucks. ** If your tile is updated but you cannot get the stains out, try this tip: mix equal parts baking soda and bleach. Paint the mixture on with a paint brush and let it sit for at least 20 minutes. Then scrub with a rag and rinse.

Pedestal sinks are a big hit with buyers.

They beautifully show off square footage in small bathrooms beautif. First, your old vanity has to go. Next, just hook up your new sink and your bathroom will have dramatic appeal that brings in big bucks. Plus, buyers will see how much floor space your bathroom has. Your bathroom will go from boxy to spacious!

A master bedroom should, without a doubt, appeal to both sexes.

When you are selling, your master bedroom should appeal to buyers of both sexes. Get rid of features that seem too gender-specific. Paint the walls a neutral color, and choose bedding that matches. Then accessorize with items that complement the overall color scheme.

Do you have an overpowering brick fireplace that sticks out like a sore thumb?

Here’s an easy way to tone it down with paint. Use a rag or brush to rub a light coat of paint on the bricks, one at a time. This will give them a new tone without covering them completely. And, if you use a color of paint that matches the walls, your fireplace will go from sticking out to standing out. Also, give the fireplace a good cleaning, scrubbing it with soap and water. Then, you could also use a stone color-enhancer, polish the bricks to make them shine. In no time you will have a fireplace that will turn your house into the hottest property on the block.

Updating an old fireplace screen is a cheap (and quick) fix.

After removing the screen and wiping it down to get rid of the dust, mask off the windows so you won’t get paint on them. Then, using a can of heat-resistant spray paint, give the screen a facelift. Hold the can about 18 inches away, and use long, even strokes. For less than $5, you will have a fireplace screen that’ll keep your sale from going up in smoke.

Stain dated kitchen cabinets instead of replacing them.

Dated kitchen cabinets can be a big turnoff to potential buyers. Instead of paying big bucks to replace them, just stain them. First, apply the stain in even strokes, going with the grain of the wood. Add some stylish new hardware, and your kitchen will have the up-to-date look that buyers love, for less than $200.

Stainless-steel appliances are definitely in with buyers.

Instead of buying a new dishwasher, here is a low-cost way to reface an old one: First, remove the front panels, and clean them. Next, apply a stainless-steel stick-on covering, and cut it to size. For just $20 your dishwasher will go from outdated to ultra-modern.

Fill existing hardware holes instead of making new, unsightly ones.

Removing old kitchen hardware can leave your cabinets with stripped out holes. Here is a trick to reusing the existing ones. First, dip a toothpick in glue and place it in the stripped hole. Cut off the excess piece. Once the glue dries, you’ll be ready to put in the new hardware that buyers love.

Save money on granite countertops.

Granite countertops are a huge selling feature, but they can be expensive. Here are a few ways to save on this investment: First, do the demo yourself. Also, ask the vendor for remnants from previous projects. And remember, any money you spend will definitely be returned in the value these beautiful counters add to your kitchen.

New kitchen appliances bring high returns from sellers.

Studies show that new kitchen appliances bring high returns from sellers, so get rid of old appliances that make the rest of the kitchen look dated. Once you install the new equipment, it will scream "new kitchen," and you will see that spending a little money will make you even more.

Need to dress up a window but don’t want to shell out big bucks for window treatments?

Here’s a trick: use place mats. First, apply a hook-and-loop fastener to the place mats and attach them in a row to a basic curtain rod. Now that the place mats are attached to the curtain rods, pin them together at the bottom, and you’ll have a stylish valance that only costs about $12.

Adding drama to old hardwood flooring is easier than you might think.

First, isolate damaged boards, cut them out, and replace them with new pieces. Rent a sander from a local hardware store, and give the floor a good sanding. The last step is to stain the boards with a rich color, and watch your floor go from drab to dramatic in no time.

Buyers love built-in bookshelves.

There’s a fine line between filling them with clutter and staging them to sell. The trick is to arrange neutral items in clusters. Make sure that no single accessory stands out too much. That way, you’ll show off your attractive built-ins, and not your personal belongings.

Curb appeal is vital to attracting buyers.

Here is how to stop traffic using color. First, with two tones of paint, add a faux finish to any corner keystones. Next, bring out the color of walkway pavers using a stone sealer. Plant blooming flowers and you’ll have buyers swarming like bees to your front door. A nice outdoor deck can be a big selling feature, but an old one is a major liability. To give your outdoor space new life, first sand the wood. Cover it with a light-colored stain instead of paint to give it a rustic, grainy look. Furnish it for entertaining, and watch your open house turn into a party.

Breathe new life into a worn red brick patio.

Do you have a red brick patio surface that needs to be freshened up? Here is an easy way to give it new life with paint. First, roll a light coat of paint onto the bricks. Next, lightly spray them with water and then dab them before they dry to give them an outdoor look. When you are done, you will have a patio that looks fresh and reels in buyers.

Staging rooms to show off their true potential is essential when selling your home.

Clear out clutter or other personal items that will distract buyers. Paint the walls a neutral tone, and furnish the space to show off how functional it is. When buyers come through and imagine themselves there, you can bet an offer isn’t far behind.

A shabby wood-panel wall is not a strong selling point.

Instead of ripping it out, cover it up. Use wood filler to carefully fill in all the cracks between the panels. Then, use a sponge to wipe away the excess filler. Once it’s dry, paint the room. You’ll see an unattractive wall go from standing out to blending in.

Rearranging a room to stage it for your open house?

Here is a tip to save time and effort: Instead of lugging the heavy furniture around the room to see what feels best, put outlines on the floor with painters tape. Arrange the room according to your outlines, and save your energy for counting offers.

Vinyl tile is an inexpensive way to update your home.

Laying vinyl tile is an inexpensive way to update your home, but there’s a right way and a wrong way to do it. You need to avoid laying patterns that look too perfect. Instead, make sure to switch up the direction and placement of the tiles to mix the tones. That way, you end up with a floor that has a natural feel.

Let the sun shine in!

Buyers love light and airy living rooms, but dark and dingy isn’t on their list. Open up your window shades to let some light in. Cheat some sunshine with a light-colored paint and lots of artificial lighting. You can never have too many lamps. Last, arrange the space with lightly colored furniture, and you’ll have a living room that brightens your chances of a sale.

Stage rooms with one purpose so buyers will know what it is.

Potential buyers are confused by extra rooms that have a mishmash of uses. To avoid this problem, first clear away clutter and excess furniture. Paint the walls a neutral tone and then furnish the room with a desk to stage it as a home office in which buyers will want to get down to business.

Unpleasant pet odors can make a bad first impression on buyers.

We all love our pets, but unpleasant pet odors can make a bad first impression on buyers. Be sure to get rid of old carpet that can trap offensive smells. Replace it with fresh new carpet in a neutral color. Plus, if you paint the walls to match, your living room will look bigger. It’ll go from designed to smell to designed to sell.

Pack up unnecessary items and furniture before you show the house.

An over-packed living room is a red flag to buyers that your home lacks storage space. Pack up unnecessary items and furniture and move it your garage or a nearby storage facility. Clear the way for a sale by letting buyers see your square footage, not your personal belongings.

Storage space sells!
Potential buyers love homes that have lots of storage space. Since they will open your closets, it’s a good idea to clear out unnecessary clutter, and organize your shelves to show off how much storage you really have. Plus, it gives you a chance to start packing, as you will definitely be moving once buyers see all that closet space.

Create a nice flow in your rooms.

Buyers are attracted to homes that have a good flow. You can create circulation by replacing square or rectangular dining tables with round ones. Cutting the corners adds room to this maneuver and creates a spin-off effect that adds flow to your home — cash flow, that is.

Create a better flow in the house by starting with the floor.

Want to create better flow in your house? Start with the floor. Join two rooms together by using the most cost-efficient material in the book: vinyl tile. First, use a snap-line to create a center point between the two rooms. Next, the fun part — peel and stick the new vinyl tile down, and watch your kitchen and dining room go from old to sold!

Do you know of any other great staging tips? Share them with us by leaving a comment!

It’s time to buy a house in Canton and Plymouth, MI

alsted — Mon, 25 Aug 2008 19:11:13 +0000

Many Canton and Plymouth Michigan home buyers were hesitant to buy a home right away, thinking that home values were still declining and that if they waited they would get a better deal. But the truth is, there are many reasons why NOW is the time to buy a house. With the passing of the Economic Recovery Act of 2008 and it’s generous tax credit, the Down Payment Assistance Program being terminated in October of this year and the fact that research shows an increase in home value already touching parts of America- now is clearly the time to get into your dream home! Canton, Michigan home buyers and home sellers know the benefits of the following real estate secrets…

The passing of the Economic Recovery Act of 2008 (HR 3221) the government will give first time home buyers (or someone who hasn’t owned a home for three years) up to a $7,500 tax credit. This is an excellent new benefit that will help Canton, MI residents and fellow Americans get into their new home.

Secondly, President Bush recently passed a bill that abolishes the Down Payment Assistance Program effective October 1st, 2008. The Down Payment Assistance Program (also known as "Zero Down") allows you to purchase a home with a FHA insured loan and have the seller pay your down payment.

For a short few months, you can take advantage of both the generous tax credit as well as the Zero Down program! If you are serious about finding a real bargain in real estate, getting your family into your dream home while still having the benefits that are still available- now is the time to make your home purchase.

Still not convinced? Well, there is some exciting news about an increase in home value already starting to touch some American cities. Some speculate that the crashing of home prices have hit near bottom and will start to finally increase steadily in the next year or so. Some cities have had three consecutive months of positive returns. These two markets are also showing the smallest annual declines. To keep yourself up to date Standard & Poor’s/Case-Shiller Home Price Indices accurately track the price path of typical single-family homes located in each metropolitan area provided. Each index combines matched price pairs for thousands of individual houses from the available universe of arms-length data.. The S&P/Case-Shiller Home Price Indices are published on the last Tuesday of each month at 9:00am ET. The S&P/Case-Shiller National U.S. Home Price Index tracks the value of single-family housing within the United States. The index is a composite of single-family home price indices for the nine U.S. Census divisions and is calculated quarterly.

So, not only is now a great time to buy a home, many Canton and Plymouth Michigan families and investors are reconsidering flipping houses. They have also gotten back in the game by doing home searching on the Internet and finding all of the great deals that are still out there. One excellent example of the great deals available comes from The Bittinger Team.

See how Southeastern Michigan benefits

from The Bittinger Team’s expertise in real estate!

We would love to hear your comments!

Canton and Plymouth home buyers say no to cash back deals!

alsted — Sun, 15 Jun 2008 17:44:27 +0000

Home sales in Canton, Plymouth, Livonia, Northville, and pretty much all of the Detroit suburbs has been painfully slow. That’s why “Cash Back Deals” for home buyers are starting to surface. When confronted with a money back transaction . . . Just Say No!

Several of our clients have asked why not. Manufacturers and retailers often offer cash back deals or rebates as further enticements to purchase anything from computers to automobiles. In recent years, such cash back deals are growing in popularity in the real estate market. Unfortunately, when applied to real estate, these cash back deals are illegal.

Illegal???!!!

Yes, illegal.

Many homeowners, home buyers, real estate professionals, and even attorneys who should know better will tell you that getting cash back when you purchase real estate is legal and perfectly acceptable. People do it all the time. It’s a great deal for everyone involved. The buyer simply pays a little more for the property, and the seller agrees to kick back the surplus cash to the buyer. The buyer gets some cash to pay off outstanding credit card debt, cover home repairs and renovations, or whatever. The seller unloads the house at close to or better than the asking price. The real estate agent gets a bigger commission. The mortgage broker earns a commission on the loan. And the lender scores a larger loan and stands to earn more interest over the life of the loan.

The problem is that a cash back deal misleads the lender into approving a loan for which the collateral (the house) is insufficient to secure the loan. If the homeowners default on the loan and the lender forecloses, the lender is less likely to be able to sell the home for enough money to cover the balance owed on the loan.

These cash back deals also inflate house prices, property taxes (which are based on property values), and insurance, making homes less affordable. Over time, they increase foreclosure rates resulting in deflated property values. As homeowners leave, neighborhoods

If you are selling your home, refuse to go along with any deal in which the buyer is receiving cash back at closing. If you’re having trouble selling your home, you may need to hire a professional stager to make your home look more inviting, hire a top-producing agent to market your property more effectively, or drop your asking price. Going along with a cash-back arrangement is no way to attract a buyer.

If you are buying a home and stand to receive cash back in any way, shape, or form, put a stop to the transaction immediately. Many sellers will try to cover their tracks by offering cash back in other forms, such as lease back payments (for investment properties), paying you for an option to buy the property back (when they have no intention of ever buying the property back), cash for repairs and renovations, or even free furniture or a car or a vacation package.

Here are some of the warning signs that a cash back deal is in progress:

The buyer places an offer on the property that’s significantly more than the asking price on the condition that the seller kicks back all or some of the extra money.

The appraisal is obviously inflated.

Neither the buyer nor the buyer’s agent has ever seen the property.

The buyer wants to use a different title company than the one that the seller’s agent has chosen.

The buyer or buyer’s agent claims that the extra money will be used for home repairs or renovations or paid to a contracting company to handle the repairs or renovations.

If you notice any of these warning signs, put a stop to the transaction, refuse to get involved, and contact the lender to report your suspicions. If the lender won’t listen to you, call Freddie Mac’s mortgage fraud hot line at 1-800-4FRAUD8 (1-800-437-2838) or contact your state attorney general (you can find a list of state attorneys general at www.consumerfraudreporting.org/stateattorneygenerallist.php).

Learn more about this from Ralph Roberts.

Ralph R. Roberts, GRI, CRS is a real estate and mortgage fraud forensics expert and author of Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Home ownership (Kaplan Publishing).

Having a hard time selling and tempted to try the cash back approach? Don’t do it!

Instead discover other more creative approaches we have to selling your home quicker.

Looking for the “Best Deal In Town” and tempted by creative cash back deals that sound fishy? Don’t bite!

There is an abundance of homes for sale in today’s market at rock bottom prices. There is no need to resort to something illegal to accomplish your goals. For a great search experience visit out partner website www.bestmichiganhouses.com.

Additionally visit our team website for helpful tips on how to buy your next home.

Low Appraisals Add To Seller’s Woes…Setting Your House Price, Clinic #1

alsted — Thu, 22 May 2008 19:39:50 +0000

Getting the highest price for the sale of your home is usually a seller’s primary objective. But even if you sell the house at a high price, it still has to appraise or it will never make it to closing.

Our experience in home sales in the Detroit, Michigan suburbs is that sellers, with the help of their agents, usually price a property too high. This results in a lower appraisal and an unsold house after weeks or even months of being off the market.

This blog provides the first in a series of house pricing clinics that you can use to objectively set the correct asking price for your home that will net you the most dollars after all is said and done at the closing table.

Imagine having to run a marathon in almost impossible weather conditions. In fact, it is the worst race-day weather in almost twenty years. Somehow, you grit it out. Determination enables you to keep one foot in front of the other, even though the finish line is still miles ahead of you.

How would you feel if you were that runner? That’s how sellers feel when they are told, about a week prior to closing, that their property won’t close because of a low appraisal. It’s a long walk back to the starting line.

Low appraisals are becoming more common in our correcting market, and it’s adding to the frustration levels of sellers, agents and even the appraisers. However, there are steps that sellers and agents can take to possibly improve the appraisal. In the cases where they cannot, they can at least minimize the disruption a low appraisal can cause.

The first step in avoiding a low appraisal is setting the price right the first time and getting a sale at a price that will appraise at current market conditions. Click here for advice on how to set the price right.

Secondly, in our market where the price is decreasing, you’ll want to get the house sold as quickly as possible. Staging the house is crucial to getting it sold quickly at the right price. We often tell our clients who we represent in the sale of their home "We are in a price war and a beauty contest". Not only does the house have to be priced right, it also has to look great. Our home staging checklist will help in taking you through the things that must be done before putting your house on the market.

If you set the price right and made the house look like a gem, chances are you will get a sale in a reasonable time period. Once that happens it is crucial to get an appraisal fast. We work diligently with the selling agent and bank to get the appraisal fast. Every day the house is off the market is a loss to the seller if the appraisal comes in low. We want to know about appraisal issues right away so we can get the house back on the market if the issue is unresolvable. An added benefit is that often there were other buyers for the house that may still be in the market to buy. We want to resurrect them if possible

If their is an appraisal issue we work with the appraiser to try to arrive at a solution. Understand that the appraiser’s livelihood is tied to the success of our market, just like ours. Appraisers want every property to appraise, as long as they have the proper supporting information. Working together, instead of yelling and pointing fingers at each other, will better accomplish that.

Sellers may be able to help the cause, particularly if they know inside information on a recent sale in their neighborhood, such as a death or divorce, something that would explain a lower-than-normal sales price. Appraisers welcome input and reasons to use or disqualify a particular sale. Agents can do a better job of being cooperative with appraisers when they call to verify the details of a sale. The information they give may help rescue a transaction.

Buyers can lose because of a low appraisal too. Therefore, agents should be proactive in helping a buyer select a lender. Local lenders use local appraisers. Buyers take caution: chasing the “lowest rate of the day” from one of the many Internet lenders may not be the best path to take. Internet lenders sometimes use out-of-area appraisers, who do not know the nuances of the local market. Not only that, they may take the attitude that they will never have to do business with us again, so why go the extra mile in order to make the deal happen?

When a local lender is selected, agents should ask to see the list of approved appraisers. If a familiar name pops up, the agent may be able to request that person. It’s always better to work with someone you know. Consumers choosing an agent should request a list of all appraisers they have worked with in the past.

One of the most prudent things to do is to require the appraisal be done as close to the effective date of the contract as possible. Sellers, if you are selling privately, you should write this into the contract because if you do not specify the timing of the appraisal, then it may be completed according to someone else’s convenience, not yours. It may even take place after the mortgage contingency period is over. However, it could still ruin the sale because an acceptable appraisal is usually one of the conditions of loan approval. Either way, the property may not close. Aggressive buyers may even delay the appraisal and use it to reopen negotiations to the unsuspecting seller. Sellers, your negotiation strength is weakened somewhat once your moving truck is loaded.

A low appraisal does not have to kill the deal. Remedies include getting a second appraisal, renegotiation of the price, or the buyer can increase the down payment to cover the shortage. Regardless, the marathon process of selling requires stamina. Therefore, when you run the race in the conditions we face, run it once. If you have to start over because of a low appraisal, the sooner off the starting line you find out, the better.

If you are ready to put your house on the market call us and ask for a detailed Marketing Market Analysis (MMA). Most agents will provide a Comparative Market Analysis (CMA) which prices the house based on recent sales. Our MMA prices the house using recent sales and our Marketing systems to help you obtain the best price based on today’s market. Setting that initial price is the first step to getting the best price.

Subscribe to this site and watch for more blogs on pricing your house in today’s challenging market.

Home Sellers Save Transfer Taxes Using Little Known Exemption.

alsted — Mon, 07 Apr 2008 23:01:06 +0000

Our Canton and Plymouth home sellers are saving money big time by getting refunds on their Michigan Transfer Taxes incurred upon the sale of their primary residence.

Proposal A, which passed in 1994, drastically reduced property taxes and capped the yearly increases. This represented a huge savings to Michigan homeowners.

To alleviate the loss in tax revenue the Michigan Transfer Tax Act was amended to increase substantially the tax levied when a homeowner sells their property.

I know many sellers complain about the high transfer tax on sale but I have found myself reminding them that they have been saving thousands over the years of ownership due to the reduced property taxes.

However, now that home values have been decreasing, home sellers are getting hit with a double whammy…the drop in proceeds on the sale and the requirement to pay the high transfer tax on a sale where they are losing money.

There is a little known exemption in the Tax Act that has rarely been applicable until now. This exemption has been getting more attention as of late due to the lowering SEV (State Equalized Value) on homes.

Attorney General Mike Cox issued an opinion last week clarifying the proper application of this exemption. The opinion should afford certain home sellers immediate financial relief as Michigan’s real estate market continues its road to recovery.

Exemption “t”, as designated in the Michigan Transfer Tax Act, sets forth that a seller may seek an exemption from paying the state transfer tax if the following criteria are met:

1) The property must have been occupied as a principle residence and classified as a homestead property during the year of sale.

2) The property’s SEV for the calendar year of the sale must be less than or equal to the SEV for the calendar year in which the seller acquired the property.

3) The property cannot be transferred for consideration exceeding its true cash value for the year of the transfer.

With property values and corresponding SEV declining due to the struggling economy, many home owners and real estate agents took notice of the exemption’s possible applicability under the state transfer tax. However, absent an official interpretation, there was little awareness of its proper application.

As an example of how the exemption works let’s say you bought a house in 2007 for $220,000. You have lived in it as your primary residence and you registered the home with your city as a homestead property. You sold the property in 2008 for $180,000. Unfortunately, a typical situation in today’s market.

The SEV when you bought was $110,000 (half of purchase price) and let’s say your current SEV is $95,000. This scenario would satisfy the first two criteria above.

The true cash value in 2008 is 2 times the SEV or $190,000. Since the sale price is less than the true cash value the third criteria above has been met and you would be eligible for the tax exemption.

The Attorney General’s opinion provides immediate relief to home sellers already faced with the reality of declining value on their single greatest asset. The opinion also provides a uniform reading of the exemption that is necessary to provide consistent application among the various Registers of Deeds across the state as they are already receiving filings for the exemption.

Sellers should be cautioned that a request for the exemption that fails to meet all three criteria could bring a penalty equal to 20% of the tax assessed in addition to the tax due. Additionally, no similar exemption exists in the County Real Estate Transfer Tax Act.

email us at team@bittinger.com for more information. To apply for the exemption you must submit Michigan Department of Treasury form 2796.

Did you sell recently? Is your house up for sale now or are you about to put it on the market. This knowledge will help you save a bundle as our sellers are experiencing. Leave a comment below for more ways to save money in your next real estate transaction.

Fed Rate Cuts Help Canton Homes Sell

alsted — Sat, 22 Mar 2008 01:25:58 +0000

Fed rate cuts should boost house sales in Canton, Plymouth, Northville, Novi and the rest of the Detroit Suburbs.

This has been another volatile week in the mortgage markets. The favorable rate cuts should result in increased house sales activities in the Canton and Plymouth market.

There was major news news out on each of the first three days of the week. The net effect of the ups and downs was a significant reduction in mortgage rates.

Two stories surprised investors Monday morning:

In an uncommon emergency meeting over the weekend, the Fed decided to lower its discount rate to 3.25% from 3.5%

The other major announcement was the sale of Bear Stearns, a large investment bank, to avoid bankruptcy. Bear’s stock, which had been trading around $80 per share in January, would be sold for just $2 per share. Investors took the news to mean that the risks to the credit markets were even greater than they thought, and they embarked on a flight to relatively safe investments, which lowered mortgage rates.

Big news on Tuesday:

Fed cut the Fed Funds rate by three quarters of a point to 2.25%, as expected by many investors, although two of the ten voting Fed members were in favor of a smaller rate cut.

Stocks rallied on the news, and the Dow closed higher by a whopping 420 points, but the Fed’s emphasis on the risk of higher inflation hurt mortgage markets. Overall, the Fed’s statement described reduced economic growth and higher inflation expectations. The Fed believes that inflation should moderate over coming quarters, but that the uncertainty over the inflation outlook has increased. Mortgage investors require higher yields to offset future inflation, and mortgage rates rose, offsetting some of Monday’s reduction.

Another big news story hit the wires on Wednesday:

OFHEO, the regulator for Fannie Mae and Freddie Mac, relaxed the capital requirements for the two firms. Early estimates are that the changes will enable Fannie and Freddie to make an additional $200 billion in loans. The additional capacity for mortgage investments boosted mortgage markets, and mortgage rates fell again.

The home sales market in the Detroit suburbs has been dismal as of late but this news of mortgage rate cuts is bound to inject activity into the sales process. It appears there are lots of buyers in the wings waiting for the right moment to make their move. We have witnessed more activity in the last few months and believe this bodes well for the near future.

Bernice Ross Coaches Realtors at RE/MAX Convention

alsted — Thu, 06 Mar 2008 03:10:47 +0000

Bernice Ross, Inman News Columnist, Hypes Great Service

Bernice Ross is a syndicated columnist with Inman News. Her columns focus on training real estate agents to be their best.

In this market, preaches Bernice, sellers and buyers need the benefits of improved services. Typical discount real estate brokerages achieve their low prices by slashing the service levels they provide. The best way to get a house sold is not to decrease the services. Maximum exposure is required these days to get a house sold in a reasonable period of time and at the right price.

Anybody can tell you they will sell your house but it takes a professional using the tools available today to get the exposure you need.

Typical Realtors will put a house on the market and use the "Five P" method of marketing . . . Put your house in the MLS, Put a sign in the yard, Put an ad in the paper, Put it in the Internet in a website or two, and Pray it sells!

Bernice delivered a powerful message concerning quality of service and adding systems that increase exposure. The problem is most agents are scaling back on their services because of the cost. Low house sales equal low income and 90 % of the agents can’t afford to spend the money to provide their clients the right kind of exposure.

Lee & Noel and a few other RE/MAX agents from across the country listen intently to Bernice and took advantage of her presence to receive an autographed copy of her latest book.

Canton Expo is a One Stop Shopping Center

alsted — Wed, 27 Feb 2008 21:41:58 +0000

What has the Detroit Builders show got over the 2008 Home Improvement Expo at our Summit in Canton, Michigan?

Not much when you consider there are over 120 local businesses representing the best of their products that can help you with building projects and save you money.

Summit on the Park Building at 1150 Canton Center Road, Canton Michigan

This year’s expo will be a one-stop-shop for home improvements, project financing, decorating and planning, and a host of other services. Whether you’re interested in decorative tile, garage interior design, kitchen remodeling, siding, outdoor awnings, patio & deck design and install, decorative concrete, or just about anything else you can dream of to do around your home this Home Expo is the place to be.

All this and admission is FREE to all.

The event will take place from 9 a.m. to 5 p.m. Saturday, March 1, and from 11 a.m. to 5 p.m. Sunday, March 2, at Summit on the Park, 46000 Summit Parkway, Canton Michigan. The two-day event is sponsored by the Canton Chamber of Commerce, the Canton Building Department and the Observer & Eccentric Newspapers.

How-to workshops will be held all weekend on a variety of topics from landscaping to installing brick pavers, patios and ceramic tile. A hands-on children’s project center will also be available for kids of all ages to construct projects made from wood donated by Home Depot.

A special guest appearance will be made by Murray Gula, Host of Murray Gula’s Home Improvement Team on WXYZ-TV Detroit and Joe Gagnon “The Appliance Doctor” will be broadcasting his 1600 WAAM talk radio program live from the Expo.

In addition to multiple raffles held throughout the weekend, Canton Construction along with the Michigan Regional Council of Carpenter’s Union local 1234 Detroit Division will be making planters, benches and picnic tables to raffle off.

For more information or to view a complete list of vendors, log on to www.canton-mi.org or call Canton’s Building and Inspection Services Division at (734) 394-5200.

By …Lee Bittinger

Bargain Hunters … Buying a house now may be your best investment!

alsted — Tue, 26 Feb 2008 00:33:18 +0000

The distressed Michigan housing market should get a lift this spring as bargain prices and favorable interest rates lure prospective buyers out of hibernation. Tighter lending practices however, means no one should expect the boom days to return any time soon.

SPRING HOUSING MARKET ALMOST HERE

Spring is a pivotal season in the housing market in the Canton, Michigan area and in the Detroit metropolitan suburbs in general. Potential buyers typically emerge from a winter hiatus and shop in earnest for a new home or an investment. The strength of the market in March, April and May usually sets the tone for the entire year.

This year, spring has assumed even greater importance as our ongoing Michigan economic slump couples with a sharp U.S. economic slowdown. The U.S. slump by many standards has been triggered also by a slow country wide real-estate market.

After sales of existing homes in Canton, Plymouth, Northville, Novi and surrounding cities sank almost 11 percent last year, a housing revival could help our local economy get back into revival mode.

When the housing sector is thriving, so does the economy as buyers spend heavily on new appliances and furniture while owners pump cash into remodeling or additions.

In many areas, the choice of homes on the market has increased considerably, with unsold inventory double the typical supply as foreclosures mount and sellers hold out for higher bids

Indeed, possible buyers are already coming out the woodwork seeking deep discounts.

Signed contracts that have yet to close were higher in January than any month in the prior six. While we’ve seen quite a bit of increase in traffic, a lot of people are shopping for deals right now.

HIGH HURDLES

But the roadblock to closing the contracts is ominous.

Many lenders are shutting down the money pipeline to all but the most credit-worthy borrowers, looking to avoid repeating mistakes that led to the current wave of bad mortgages.

While a flurry of sales this spring may highlight the pent-up demand in the market, it probably would not signal a sustainable housing upturn this year.

Still, demand is stirring as sellers grow desperate to off-load properties. Fixed mortgage rates are low, and some home prices are looking too attractive to pass up.

Bidders are emerging for foreclosed homes and for so-called "short sales" at sharply reduced prices. In a short sale, the lender agrees to take a loss and avoid foreclosure costs if the borrower is unable to command a sale price that will pay the remaining mortgage balance.

Meanwhile, the average 30-year mortgage rate is around 6 percent. That’s up a half percentage point from four-year lows set last month, but it’s roughly a quarter point less than a year ago, based on data from Freddie Mac, the second-largest U.S. home funding company.

NEW GOVERNMENT STIMULUS SHOULD HELP

A new government stimulus package will likely also open the doors for more buyers. It temporarily raises the size of mortgages that can be purchased by Freddie Mac and Fannie Mae, the No. 1 federally chartered home funding company, making some lenders more inclined to approve home loans.

Additionally an expected new rate hike by the Fed that is rumored to take place in March will undoubtedly create more downside pressure on rates.

If people have a good track record of paying their bills, the loans are there. But those kinds of buyers seem to be scarcer today than ever before. Even a few late paid loans are enough to lower a credit score to a level that turns away many mortgage companies.

Even if you talk to people who refinanced recently, a lot of them are finding that the banks are asking a lot more personal and critical questions. There is no doubt It’s more troublesome to get a loan these days.

BUYERS MARKET

In spite of all the above I think this is the best buyer’s market that has existed in a long time. There are tons of inventory, great interest rates and the prices are back in line to where houses are decently priced again. In fact I would consider many houses on the market to be at rock bottom prices now.

If you are currently renting this could be the best time to buy than has existed in a long time. Even if you own a house and wish to move up, this might still be a great opportunity. While taking a loss on your current house may not be savory, the gain you’ll get on the move up house may be much more than the loss on the old one.

Lee Bittinger