Genesee County Home Sales for 1st Quarter 2007 915!

Of these 915 home sales only 331 appear to be foreclosure sales,

The average discount on non-foreclosure homes sold is 92.3% of ORIGINAL asking price. Not a bad number. This is only average but it shows that most home buyers are not going to get $15,000 discount on a $100,000 home or a $300,000 home for $255,000, maybe, but highly unlikely. If you are buying a home keep this in mind.

There are 5400+ active homes for sale in Genesee County tonight. 4801 of these Realtor listed homes are not foreclosures. This equates to a 24 month supply of non-forclosure homes for sale.

The number of buyers in the market right now is great. Our agents are swamped with buyers and the website traffic is way up, we have a pretty good idea what the market is doing and right now it is positive, buyers want to buy (some are a little unrealistic and taking to heart the article they read in magazines about sellers giving homes away) but the condition of the homes is the problem. Please fix up, clean up and get ready for buyers to come, we will bring them if the price is right and the home looks clean.

If you are listed with an agent, get with them to make sure the pictures of your home online tell the story of your home. Make sure you are priced right to the market conditions, if you are not and will not take less, take your home off the market.

If you are buying a home and you looked at 47 houses for sale and found the best available, don't offer 30 grand less for a home you just proved is the best available, the seller will not take it and the real estate agent will just reduce the price $15,000 and sell it for more than you offered to the next guy, you already acknowledged it is the best available. Not saying this happens. The point is for everyone to stop and think and not get wrapped up in the hoopla in the media.

Remember it was the same people in the media that now say real estate is crashing (it is not) that told you 18 months ago that if you were not neck deep in real estate that you were loosing the wealth battle. Make a long term decision on what is best for you and your family, pick a place to be happy and feel safe. And by all means use a ChangingStreets.com agent that appreciates all this....LOL couldn't resist a cheezy plug in the middle of a rant!

If you are buying or want to buy, a date of interest to you is May 1st ( I could be off by a couple days so if so please let me know). Why? May 1st is the last day to place a homestead exemption on a home that a previous owner may have rescinded.

This would mean that you could and based on the budget situation in Michigan probably will be taxed at the non-homestead rate for upcoming 2007 tax bills. A rate in some cases 30% higher.

If you are looking to buy, odds are pretty good that you will buy a home that is vacant, over 50% of the homes on the market are vacant(according to MLS statistics 5430 homes are actively for sale in Genesee County and over 2800 show immidiate occupancy, usually a pretty good indication they are vacant).
And so far this year there have been 918 sales in Genesee County and over 600 indicate immediate occupancy on the sold MLS sheet.

So this is a good tip to save you money on your home purchase.

Also mortgages are getting more complicated and difficult to obtain by the moment. If you do not have sterling credit and a decent down payment, I would be looking now. This is not a scare tactic or sales pitch, it is the truth.

If you are selling keep in mind that mortgage funds will become increasingly tighter to come by for a lot of buyers in our market.

While I was driving back from Columbus yesterday I came to the contruction zone on 23 that I blogged about a couple of weeks ago. Two weeks ago I was passed by hundreds of cars that decided not to wait on line with the rest of us respectful people. Yesterday everyone merged but 5 cars! It was awesome! It took half the time to get through the zone and I merged to the right in almost the exact same spot as before. Consideration works for everyone! Good Job Michigan! Glad to see I am not the only one who has a problem with "important" people,great blog

Year to date Home Sales in Genesee County are equal with those of last year! I didn't dig too deep I was happy knowing that, If there is any bad news to go with it, I simply don't want to know today.

How about this update on a blog I did the end of last year about the Agent that was sending sticky notes to listings wanting to buy homes for sale. It looks like part of the kit you get when you sign up for the "how to make a million in real estate with out even being smart".

We have fielded a large number of calls from buyers that have purchased foreclosures in the last couple of days.

The question is if they purchased a home for $100,000 in an open market how could the local municipality tax them on a value that is significantly higher? I thought this was a good question. I do not pretend to be an expert on valuation from the municipal point of view. I am however fairly well versed on market valuations. The purpose of a real estate appraisal (I know this is different than an assessment) is to determine value of property if it were to sell at an arms length transaction in an open market.

If that is the case why does the government think your home is worth more? The obvious answer is that we all know the government needs revenue, but that reason seems quite un-American. So I need a good answer to give to the public if someone can assist.

I think I have a good idea. Most foreclosure homes need a great deal of workand are an eyesore to say the least for most neighborhoods. What if the local municipality not only assesed them at the lower value but also gave a tax abatement for 6 months to owner occupied purchasers so they could improve the property and increase its long term taxable value and perhaps those of the nieghbors. I know a lot of homeowners would be happy to pay a couple of extra bucks every year if the neighborhood looks significantly better. Who knows. It seems like a good idea to incentivize someone for doing something good for the community.

This issue sounds a little strange to me, I know I would not be happy paying taxes based on an amount higher than the one I paid for the home, especially when the Flint Journal told me last Sunday my home will not be worth what I paid for it in 5 years. How will this problem be solved? This seems like a long term opportunity for forward thinking governments to INCREASE long term value by coming up with an intelligent solution now. Lets see what happens.

Why not take this to the next level and find a way to give property tax to someone willing to move into the city of Flint if they purchase a Land Bank or foreclosed property? Perhaps assess them only a school tax for a period of time. Think about this. If a hundred properties are assessed at $25,000 and collect $100,000 in taxes annually on these homes that are vacant. Meaning there is no one there to support the local businesses. So the city gaves up a little revenue over three years to lure residents. If 70 of these homes sold, plumbing was installed, the homes are significantly improved and taxable value increased to $38,000. The city would then be collecting $106,400 on these 70 homes every year going forward after year three. The tax lost on these homes over 3 years $210,000, but they are now collecting the $106,400 vs the $70,000 a year. So they get the money back in 5.8 years assuming the plan failed and no other homes sold. If the plan is successful and the loss is amortized out using 20 year bonds the city would significantly increase cash flow for years to come. Forget about the tax generated on the thriving business that would serve these new residents and the positive impact on the area. Good Stuff.

This sounds a lot better than penalizing people for paying market value for their home.

I have been spending a great deal of time in Raleigh North Carolina lately, what a solid town. Great job creation, slowly rising home values (slow is good and sustainable), good infrastructure and a solid foundation for long term growth, and a very conservative approach to spending.

Actually all of North Carolina is doing well, Charlotte is one of the banking capitals of the country. Second home and retirement buyers are buying from the coast to the mountains. It is hard to believe this was one of the states victimized by huge job losses and industry shrinkage (sound familiar?) not to long ago. The textile industry ripped through North Carolina like the automotive industry ripped through Michigan.

The rebound is at least inspirational, you can feel the positive in the air. This is relevent because it shows WHAT WILL HAPPEN HERE! When the government, business and the citizens got on the same page (as it is starting to do in Flint) great things started to happen. The area was blessed with great educational opportunities ( Flint too think Kettering, U of M Flint and MSU and Uof M a short distance away) with Duke, UNC and North Carolina State. They parlayed these institutes into opportunity for business. The RTP, Research TriAngle Park, was developed to incentivize business to come to Raleigh/Durham and hire a pool of highly educated workers were already there. Bio-Tech, High Tech electronics, financial, medical and Pharmacutical research are so prevelent that Raleigh Durham is ranked as one of the smartest cities in America. These educated and hard working parents demanded and took part in making the school district, Wake County Schools, one of the strongest and best in the country. Infrastructure was build correctly (very few orange obsticles) natural features such as lakes and parks were showcased, taxes were used for development not entitlement and the area is now ranked in the top ten in almost every catagory that matters.

One of the top five smartest cities in the country. One of the top five best places to start a business. One of the best places to live. One of the best places to find a job (in one quarter last year over 10,000 jobs were created paying on average $58,000 a year).

I mention this as motivation, this is what can happen in the face of change. Change for the better. The Raleigh area does not have the lakes southern Genesee County has. It does not have all professional sports with-in 90 minutes. It does not have Michigan Football. I guess it does have NCAA Basketball as my beloved Spartans found out last saturday night. My point is Flint has things many other very successful places do not.

Flint has great access to recreation & education (two of the biggest things young families are looking for), great housing value (another thing young families are looking for). Genesee County has waterways and lakes, fantastic freeway and airport access. Metro Detroit in 60 minutes, Chicago in 4 hours. Genesee County has one of the best cultural centers in the country for a midsize town.

We need to let this out and show (not tell) why this is great place to live. Positive attitudes, consideration for fellow citizens, support business that is locally owned and operated. (simple economics when a company or area brings in more money than it sends out, it will thrive. If we are doing business with companies that send a portion of revenue somewhere else it will not get spent here!)

The problem is simple, attitude. We need to appreciate what we have and support local assets. We need to quit reading the local daily that thrives on negative news and ignores the good. I swear if I ever see another story of children or young people dying on the cover of the Sunday newspaper I will, well nothing I guess because complaining will not help. There are some great assets physical and intellectual in this area, to survive we must all play as a team and realize our weaknesses and others strengths, quit chasing the quick buck and strive for long term value. This is not doom and gloom time this is an opportunity for the strong, intelligent and considerate of our area to reach a goal that will benefit not only our citizens but future citizens.

Again everyone needs to work together, I am amazed to find how many groups in Flint are actually wasting resources working against each other to get things done and in the long run accomplish nothing. Lets face facts, in a time of limited resources are organizations better off as a team/unit? What is more important the long term success realized by sharing resources (think one building, one copier bill, one phone bill, one receptionists, one head bill....with more money going towards accomplishing goals) or the egos of the board members? This sounds harsh but it is true! Too Many Cheifs, everyone thinks they are smarter than everyone else and nothing gets done. I have built very profitable working relationships in this town because I know I don't know everything, and this is very beneficial to my clients and coworkers because they know I will find the best solution and save money by not wasting my time or theirs on something I don't know. I wish everyone worked on a meritocracy, reward the brightest and hardest working.

Another big change that needs to happen is for Flint to get over the quick buck. House flipping sounded like a good idea until someone lost an eye or went to jail. Every forth citizen becoming a loan officer sounded like a good idea until Genesee County became the poster child for Home Foreclosures (this was not accident, it was pure greed by people that had or have no business dealing with someones personal finances let alone a home children sleep in). If you travel much you will notice the lack of get quick rich infomercials in other parts of the country. There is a reason for this.

Lets not think honest is negative, lets look for the lesson or create a thought process of our own and stimulate thought in others. Lets not take consideration for weakness.

Lastly lets be nice and positive, public relations is not an advertisement it is a culture. Yeild to the right when the left lane is closing in a mile, why pass the other people that are already waiting in line and making their wait longer? Why cut someone off with out a blinker or a wave, how about a please or thank you next you pay a cashier. PLEASE! When people see we care, they will care.

These are things that are done in Raleigh, not saying it is the only reason it is in a boom period, but geez I am willing to try anything.

I have run accross a couple of blogs/sites that are all about Flint lately. Pretty interesting stuff. Interesting as in thought provoking, I agree and disagree with a lot what both of these sites are doing, but that is whats totally cool about them.

The only problem I have, is the youtube video posted by a Flint Realtor that compares with what has happened in Genesee County to 9/11.

My only comment is "Buddy says get a clue" it is sick to compare losing jobs to losing lifes. I will argue that with anyone, all day.

Anyway check some of these out:

www.FlintTalk.com

www.TheUncommonSense.com

www.TheFlintclub.com

Have fun, some great things about Flint and some people trying to make a difference.

To enter the ChangingStreets.com Spruce up for Spring contest send your entry to me at Buddy.Kane@ChangingStreets.com.

Entries will be taken until Tax Day, 04/17/07 and Winner will be announced on April 20, 2007.

There is no fee or purchase required to enter. Anyone who has there home for sale in Genesee County may enter, must be a homeowner to win. Anyone can enter the homeowner; friend, relative, agent, child.

It is that simple, now send in those entries for you chance at a $250 gift card to Spruce up for Spring and help your house sell!

Entries must say or show why the home is not selling and what you are going to do to fix the problem, it is that simple. Entries will be judged on creativity of project and or the creativity of the entry itself!

Tell Word On The Streets readers what is the reason your home will not sell and how you can fix if for $250. If the readers of this blog agree, or quite simply just like your style, humor, or honesty and you get the most votes you will win a $250.00 Gift Card to Home Depot or Lowes, your choice.

You can use this money to "spruce up your crib" for the spring buying season...paint, flowers, door knobs I don't care.

What I care about is giving a deserving homeowner some help, hopefully one with a sense of humor or is honest that the pink and brown checkered wall paper needs to go!

Enter your own home, do a friend or relative a favor and enter for them; agents enter for your clients.

Just email some facts about the home (what is great about it, what is not, maybe where it is located, because it is free exposure!) and what needs to be done. Photos are allowed and we appreciate visual support! Get your entries ready, since I just came up with this idea four minutes ago I will have a couple of rules and an email address for entry submission tomorrow.

I am thinking the winner will have to supply us with after photos as well...Help me brainstorm on this and we will put together a great contest and hopefully an entertaining couple of weeks. If anyone would like to join in with me and offer some other prizes in exchange for "your name here" and a laugh that is welcome too.

Let's have fun and help a seller! That is what Buddy Kane does!

What a BEAUTIFUL day! There is something about sunshine and a nice breeze that re-energizes me. I know I'm not alone on that. I definitely needed it today. A few of my Buyers have been stressing over their purchases over the last couple of weeks and that gives me a stomach ache. There are always challenges that come up, regarding the property, financing, the buyer, the seller, etc., and sometimes there is just nothing we can do to make things better. So, just like the sunshine, it is really refreshing to hear about transactions where everything went smoothly, due largely to the good people involved, like this sale I heard about the other day...

Ms. Buyer is renting, has grown children and has never owned a home of her own, much less negotiated her own deal! Mr. Seller was a newlywed whose wife had a fully stocked and furnished home for them. The house was advertised as being "furnished" which THRILLED Ms. Buyer because she was starting over and needed EVERYthing, so the idea of a few chairs and a dresser was very exciting for her. Unfortunately, Ms. Buyer was out-bid by another buyer. She wasn't sad for too long, though, as soon she learned that the first deal had fallen through and she had the opportunity to buy the house if she still wanted it. YAY! She was excited again! Once terms were renegotiated Mr. Seller invited her back to the house to pick what furniture she wanted to keep, then he would dispose of the rest for her. Remember, Ms. Buyer needed everything so she said she'd keep every bit of it that she could. She was so thankful and excited about the whole thing... it was contagious to Mr. Seller who told her she could keep EVERYTHING... TVs, entertainment center, beds, dressers, hand crafted desk and chair, pots, pans, EVERYTHING! We so often see people leave behind the junk that they don't want to haul to the dumpster... it was fantastic to see someone who was in the position to help someone who needed it and sooo appreciated it.

That is a good and successful transaction. Realistically, though, there is often going to be some hardship on one end of the deal or another, but it's an amazing and good person who considers the good of both parties, rather than preying on the other side's misfortune. Although we don't all meet until we get to the closing table, maybe keeping in mind that they are actual people on the other side of the deal will help us remember to negotiate with reason, kindness, and respect. It goes a long way and might even lead you to being "given" more than you ever expected!

What a great time to be in the real estate market! Change is occurring at warp speed, and Buddy Kane loves change!

There is a serious problem brewing in the mortgage industry that will have a huge impact on home buyers ability to buy. Months ago I wrote "Bad Market or Bad Decisions"; one of the points made is that the housing "boom" was in part assisted by easy to obtain financing.

That is not working out. Many mortgage companies that gave loans to people with mediocre credit scores and little cash are feeling the brunt of the massive foreclosure problem facing many regions of the country and simply ceasing to fund loans. (Keep this in mind!)

The bigger problem is the huge sums of money being lost. Just think that if the 600 available foreclosures in Genesee County all come with a $20,000 loss for the selling bank...That is $12,000,000 hit in Genesee County alone over 6 months! (ok for all of you intellects... if that company had an outstanding 13% profit margin that would soak up profits on $92,307,692 in revenue! and who has a 13% profit margin in that big of a business?)

Who lost this money? The banks and investors. Investors being private individuals, pension funds, hedge funds and corporate bond holders. Depending on the bond offering that the investors purchased they could own 100% of the loss or 0% depending on the recapture agreement. Needless to say the losses are spread. And how likely are scorned investors to get back into the subprime mortgage market? (Keep this in Mind)

Fool me once, shame on you, fool me twice shame on me. The mortgage industry will rush to strengthen the requirements for getting a mortgage. It is happening as we speak. In three months I bet that 30% of the people that qualify today will not qualify in 6 months with out paying a higher rate and more down payment, will they be able to do that?

Then what happens?

The point being if you are in the market waiting for the next shoe to drop, get after it. The next shoe is coming. This is not negative or not a scare tactic it is reality. If you do not have a 680+ credit score or 10% down and you want to own a house it is time to move. Get a good loan officer and get closed as soon as you can, make sure you find a solid house with good bones and be happy. Long term housing is still a great investment.

How will the new guidelines affect investors? Or ability for "Flippers" to sell houses? How about the income verification loans?

Interesting Times!

2007 is flying by and home sales in Genesee County are showing a life! Even with bitter cold temps in late January and February homes are selling a nice pace.

So far in 2007 there have been 575 home sales in Genesee County down only seven units from the same period in 2006. A great number considering how far off the numbers were after January. There were also 439 contracts written on Genesee County MLS listed homes in February. A very solid number.

Mortgage rates are holding a very respectable number and prices are reasonable. This solid trend should continue and the market will show signs of a mild recovery in Genesee County in 2007.

More Good News.

This is why we drag on about the company that left everyone high and dry....

Katie Wrote:

MEMBERS OF MY FAMILY WERE CONTRACTORS FOR SONRISE,MR MCPHERSON SAYS YOU DO NOT KNOW WHAT YOU ARE TALKING ABOUT WHEN YOU TALK ABOUT SONRISE. WELL I KNOW PLENTY. $43000.00 OWED TO MY FAMILY AND NO WAY TO COLLECT. WE WORKED ALL SUMMER FOR NOTHING. WE WERE A NEW BUSINESS AND THOUGHT WORKING FOR A CHRISTIAN COMPANY WOULD BE GREAT. BUT IT WASN'T! WE OWE MONEY AND IT WILL BE PAID BECAUSE I AM A CHRISTIAN AND I KNOW MY BILLS HAVE TO BE PAID. OUR COMPANY MAY NOT SURVIVE ALL BECAUSE OF SONRISE. I KNOW OF HOMEOWNERS WHO DO NOT KNOW IF AND WHEN THEIR PROPERTY TAXES WILL BE PAID BECAUSE IT WAS SONRISE'S RESPONSIBILITY TO PAY THE TAXES DUE AT CLOSING. PEOPLE TRUSTED SONRISE AND THAT TRUST IS GONE.

From a principal involved.

Katie thanks for the note. Keep us posted.