Friday, September 2, 2011

Market improves

August has been a great market for us in Pentwater so far.
But again the properties that are selling are priced favorably for the cost conscious buyer.
Mortgages are still hard to get requiring substantial down payments and excellent credit.
There are many overpriced properties still on the market but that condition has improved a lot.

Saturday, June 25, 2011

Sales of homes in Pentwater Village

A study of the property currently for sale in the Village of Pentwater and those homes sold in the Village of Pentwater over the past 5 years.
Note these homes exclude waterfront property and Condos.

To see the report click on the title of the post (in green above)

In summary:-
46 homes sold
42 homes currently for sale.
This suggests perhaps 5 years inventory currently listed.

The chart shows how many properties in each price range sold per year.
1 house sold in each 2 years in the $300,000 and over price range.
increasing to:-
4.5 houses per year for houses less than $150,000

for an average of about 9 homes per year .

This is interesting information in light of the fact that presently on the market are equal numbers of homes in each price range


Summer is here in Pentwater

I'm aware that some time has passed since I last posted to this blog - that reflects the slowness of the market presently.
As the real estate business slows we have to work harder to find and maintain the interest of the buyers.
Presently the buyers know that they control the market and many of them are sitting tight waiting to see what will happen next.
There is a lot of pent up demand and sooner or later the buyers are going to get fed up waiting. We are doing our best to be alert to when that day arrives.

In the meantime Sellers need to be very alert to what the buyers are looking at / buying. Right now the word is 'cheap'

If you really want to sell your property you need to know what the competition is and how your property is priced relative to that competition. The cheapest one sells first.

Saturday, March 12, 2011

Is Spring here yet?? - Tax Time.

At this time of year it's like that - when will the weather warm up??

A lot of people are calling to discuss their Real Estate Taxes - lots of unhappiness about the fact that the taxable values went up again.

Here, in Michigan, the Assessed Value or Taxable Value as it is sometimes known (that is the amount used to calculate your taxes) goes up each year by the Rate Of Inflation or 5% whichever is less.

Your State Equalized Value or SEV can go up any amount conceivable by the Assessor. It may also go down and we have seen this a lot more in recent years. The SEV is supposed to be nominally 50% of the Fair Market Value in Michigan. But it is complex - the Board of Equalization exists to make sure that all districts pay their fair share of the required taxes and that any one district does not contribute more or less than average to the County and State coffers.
So the question is Who decides on what the SEV should be and How do they make that decision.
????????????? wait a minute - the tax you pay is calculated using the Millage Rate and the Assessed or Taxable Value - so where does the SEV come in? - only when the property sells is the SEV of interest.
This is because the property taxes, on transfer of ownership become 'uncapped' - i.e. the Taxable Vaue (Assessed Value) becomes equal to the SEV.
So my question is what drives the SEV? - It's not entirely clear to this Real Estate Broker but I will try to explain if I find out more on the subject.

So here is the real problem with the SEV - when a property sells a document is generated called the Property Transfer Affidavit. This document finds it's way to the Assessor who then changes the Taxable Value to the value of the SEV.

So how do you sell a house whose asking price is $268,000 and whose SEV is $268,000
(The implication is that the New Owner will be paying tax at twice the rate he ought to.)
Because the Fair Market Value ought to be (generally speaking and in an 'arms length' transaction) twice the SEV. (State Rules)
This example illustrates a very common problem that we are dealing with in our market. The problem is putting a serious damper on sales of real estate.
It's time that the Board of Review members start to take these issues seriously because the current confidence in the Board of Review is not good.
As a Real Estate Broker I have been appalled at the lack of interest and the lack of real concern for the issues displayed by the Board of Review here in Pentwater.
Perhaps we might see some real effort by them to correct some of these anomalies in the system.
Also please don't imagine I lay the blame on the Board of Review - I am sure they have rules to abide by and I'm sure it's not the easiest of jobs and probably unpaid but if you are going to serve the public then get committed, I say.

Tuesday, February 22, 2011

New Year - New Market

Well here we are in a new year with a new Real Estate market.
Buyers are actively seeking real estate to buy but the results are heavily predicated on the banks reaction to the particular property they want to buy and, of course, the buyers credit worthiness.
Especially with the low mortgage interest rates the banks are unhappy lending money out for so little return. They will do it if they are comfortable with the risks.

Many Sellers are pulling their listings because of lack of Buyer interest in the normal price / value range that has been offered over the past 3 or 4 years.

The present market is wonderful for those who would own their own home and who have the down payment and ability to pay the monthly payments.
So we are seeing sales in the price range under $150,000

The occassional sale over $150,000 is also occurring.

Buyers Take note:-
1. Get quotes from at least 3 Banks - it seems like a lot of work but it's worth doing.
2. There are lots of available properties in the $150,000 and under price range.
3. Excellent value properties keeping popping on the market because of Repossession.
4. These low price, high value properties do not last long on the market even today.
5. Negotiate hard but carefully - Sellers have had their fill - The banks know exactly where they will settle.

Happy Hunting - More listings coming soon!!