I came across the website below put out by the National Association of Home Builders and it’s wonderful. They answer most of the questions that are being asked by consumers about the extended 1st time home buyers tax credit, and also those who are hearing about the repeat home buyer tax credit.

Frequently Asked Questions about the new home buyer tax credits

Much thanks to the guys & gals at the National Association of Home Builders for putting this together so quickly and concisely.

After much back and forth, and preliminary hype about the extension of this tax credit, we can now confidently write to our local consumers about this bill being signed by the President.

The 1st time home buyers tax credit HAS been extended, and there is also a tax credit for those who already own a home yet wish to sell it, and purchase another.

Below is a quickie FAQ about the credit:

Key dates: November 7, 2009 through April 30, 2010

Amount of First time home buyer tax credit: 10% of the purchase price up to a maximum of $8000

Current homeowner tax credit: $6500 or $3250 if married filing separately.

Binding contract rule: Must have written binding purchase contract by April 30, 2010 and close by July 1, 2010.

Anti fraud rule: Must attach proof of purchase documentation.

If you have any questions about how this newly extended tax credit may apply to you and your Macomb County MI home purchase please don’t hesitate to call or email me.  No pressure - just conversation.

While I was analyzing the Macomb County MI sales data for the month of October I noticed that 2 townships - Shelby Township and Chesterfield Township - had home sales prices increase this past month in comparison to the previous October:

Shelby Township had 53 homes sold in October 2009, and the average sales price was $176,232.   In comparison, during October of 2008 there were 45 homes that sold, and the average sales price was $171,928.

Chestefield Township saw 42 homes sold, with an average sales price of $120,411.   During October of last year (2008) 31 homes sold with the average sales price of $115,531.

If your home is located within one of these zip codes -   48315,  48316,  48317 , 48318,  48047,  48051 - you should be very happy about the sales prices finally increasing.

All sales data is courtesy of Mirealsource™ and it’s participating brokers and agents, and is deemed to be reliable but not guaranteed. If you would like specific information regarding home values & sales in your neighborhood please don’t hesitate to contact me.  No pressure - just conversation.

I’m a wee bit aggravated this morning with all of the blog articles and other social media posts that are stating “It’s approved!”.

The extension to the first time home buyer tax credit is not signed yet, so please please PLEASE don’t put all your eggs in one basket thinking this is the case.

As soon as the extension is official I will let you know. I promise.

I dislike pressuring people, especially home buyers.  If you would ask my previous clients they’d be apt to say that I’ll talk them out of purchase rather than talk them in to one.

That being said, if you are thinking about buying a home solely to take advantage of the first time home buyers tax credit, you’d better get an offer to purchase accepted within the next few days.

There are only 34 business days left before the credit expires.  That isn’t a heck of alot of time for mortgage processing, inspections, time to set the closing date, etc.   Most lenders are warning people that they can’t promise that the loan will close in time, and I’m doing the same thing.  No promises.  We’ll try our best, but time is running out.

Our Macomb County MI area has been in the midst of this real estate
downturn for several years now, and I thought it would be interesting
to see how this past September home sales compared to the previous
Septembers (2007 and 2008).

While we aren’t seeing home prices stabilizing as of yet, we are
seeing fewer homes come on the market.  We’re also seeing more homes being
sold this year than in years past. That should help us in the near future with
the supply & demand issue that has been so heavily tilted to the “supply” side
of the market.

Macomb County MI	September 2007	September 2008	September 2009
Homes listed	2020	1948	1475
Homes sold	525	797	840
Avg. sales price	139795	115136	89751

It’s interesting to note that while fewer homes are coming on the market this
year (less foreclosures and bank owned homes) there is more competition for
the homes.

The increase in the homes sold when comparing September 2007 to this
past September is 60%.

If  you would like specific information regarding your Macomb
County homes value please don’t hesitate to contact me.

No pressure - just conversation.

All data courtesy of Mirealsource™ and its participating real estate brokers and agents
and is deemed to be reliable but not guaranteed.

I’m one of the real estate professionals here in Macomb County that does not believe there will be an extension to the Federal first time home buyers tax credit.  Too much money has been spent in the last year with less money coming in.  The Federal government has to put a stop to it soon, and I think the tax credit will be one thing that will end as planned without an extension.

Just to be clear:  You have to own your home prior to December 1st of this year in order to qualify for the tax credit.  As the last week in November is Thanksgiving week plan on the title companies and lending institutions not working on the Friday after Thanksgiving (the last business day of the month.)   You’ll want to do your best to make sure that you can close on the home by November 25th.

Here are a couple of things you can do right now to speed up things:

Have your mortgage pre-approved. I cannot stress the importance of this.  Give your mortgage lender your last 2 income tax returns, last few bank statements and paystubs, and anything else they require to have a full pre-approval.   If they have all of this ahead of time you’re already in the “underwriting” loop.  Believe me, it can save quite a bit of time to have this process started.

Start looking at homes. All homes (with the exception of homes that are subject to a short sale.  Those take too much time and more than likely will not be able to close by the deadline.)   Also, note that the foreclosures are trickling on the market, not flooding it.  There are multiple offers on most homes, so be prepared to make an offer on a bank owned home that is consistent with market values.  Don’t make the mistake of thinking that an owner occupied home won’t be as good of a “deal” as a foreclosure.   That isn’t the case anymore.

Pick out a home inspector. Don’t wait until you’ve put in an offer on a home to pick out your home inspector.  Have one lined up and ready to go out for you quickly.   Each business day that you cut off from this inspection period is a day closer to closing on your home.

I don’t like to sound pushy or like an alarmist, but time is running out for this credit.   It’s a fact that none of us can change.

One of the most frustring experiencesfor a home buyer in our area and all across the country is falling in love with a condominium and then finding out that it won’t pass muster as far as FHA is concerned.

We all try very hard to do our due diligence: Is the condo complex a new one?   Is the owners association healthy financially?  Has the association been turned over to the homeowners?

Even with due diligence surprises can crop up. I had this happen recently with a potential condo buyer in Macomb County.  We viewed a foreclosed upon condo in Macomb Township, and even though the complex seemingly had been finished for a couple of years, I noticed one small stretch in the middle of the complex in which the builder was starting construction on 8-10 new units.   Even though the complex is approximately 90% finished this type of new construction in the complex can make or break FHA financing on any condo in the complex. FHA requires that a condo complex be 100% complete.

If the complex above had been built in  phases then this wouldn’t be an issue, as the condo that my buyer liked was most likely built during the first phase.  However this condo complex was not built in phases.  To FHA it meant that the whole complex is incomplete and it’s a no go for FHA financing.

To make matters even more difficult FHA has new guidelines coming in to play on October 1st.

If you are thinking of purchasing a condo, please talk with your mortgage lender and ask him/her about what you should look out for in narrowing down your search so that you are educated about what will and will not be allowed.   I know I will be sitting down with my trusted FHA advisors and going over everything with them.

“I only want to see foreclosures”

I had an interesting conversation with a caller yesterday the other day and  thought I would share it with all of you.  I’m hoping that by sharing it and putting it out to the public that other potential home buyers will see it, and understand the very real aspect of how this type of strategy can backfire on the home buying consumer.

For the past 3 years or so the Metro Detroit area has been swamped with foreclosed upon homes hitting our real estate market.  ( This trend has somewhat trickled in the last few months, mainly due to the new 90 day “let’s work it out” mandate from the Michigan government to home owners & lenders.)

Because of the supply (overabundance) and demand (waning demand due to economic conditions) the market not only tipped to the buyers advantage side, it fell completely over on it’s side.

What happened to other home owners who wanted to sell their homes during all of this? They had to price their homes competitively in order to be successful at selling their homes.

In the last year I have not sold one bank owned (foreclosure) home.  All of the homes that have sold to buyer clients have been homes that were owned by the sellers, and not in distress.   They sold because they were well maintained and more  imporantly, were priced to sell with the competition of the foreclosures in mind.

Mr. or Ms. Macomb County MI home buyer: If you “want to see only foreclosures” you will quite possibly missing out on some of the best deals there are out there right now.   Privately owned home owners are pricing their homes to compete with the foreclosures.

Consider this case on point: Ms. Buyer purchased a condo in Chesterfield Township for $107,000 in June of this year.  The condo sold new in 2003 for $187,000.  It was in wonderful condition and needed nothing to be able to move in to it.    It was not a bank owned home. If she had limited herself to only viewing foreclosures she would have missed out on this fabulous condo at an unbelievable price.

MSHDA (Michigan State Housing Development Authority) has some new
programs to help first time home buyers with their down payment
assistance.   I talked with Michelle Cyplik of Paramount Bank in Rochester
MI about these programs just before the Labor Day weekend, and we are
going to get together at the end of this week to talk more in depth about them.

A brief overview:

MSHDA down payment assistance: 1% of the purchase price is needed
by the home buyer along with completing a home buyers education course by
an approved MSHDA counselor. 3% of the purchase price in sellers concessions
towards your closing costs, pre-paid costs, etc. can be used with this program.

MSHDA 80/20: This program offers a 30 year fixed rate conventional mortgage
for the first loan, with a second loan that is used to equal a 100% purchase price
(no down payment needed) that is forgivable if you stay in the home for ten
years. There are no payments to make with this 2nd loan and you must be a
first time home buyer to qualify.  The home must be a foreclosure or an
abandoned home and be within a Foreclosure Risk Area with a score of 6 or
higher.  (Most areas within Macomb County MI will fall into this category)

MSHDA 80/20 Rehab: The criteria for this program is the same as above,
but you will have an opportunity to finance repairs on the home not exceeding
a total of $25,000.

If you would like more detailed information about these home buying programs
for first time home buyers, please give Michelle Cyplik at Paramount Bank
a call: 248-601-1349 ext 206 and she will be happy to speak with you and
help you.

**Important** If you want to take advantage of the (up to) $8000 first
time home buyers tax credit that expires on November 30th of this year,
you need to get your home picked out soon and an offer accepted on it.   Most
home loan programs are taking 5-6 weeks to process, and I expect that time
estimate to increase as we move through the month of  September.

~Kris Wales~ A partner for your  real estate needs in Macomb County MI

(586) 536-5453

Search Macomb County MI homes for sale

If you have been out and about looking at homes for sale in the Macomb County area then you surely have noticed that the number of homes on the market that are foreclosures (bank owned) is less than what it was a few months ago.

Part of the reason for this lower number of bank owned homes in our market is the law that was passed and became effective June 1st of this year giving homeowners a 90 day reprieve if they ask their mortgage lender for help with a work out on their loans.

As I am scouring the MLS databases for homes to view for my buyer clients I am again reminded of this new law and moratorium for home owners.  In previous months there were 30-50 homes easily to send to my buyer clients for them to review.  Now we are lucky if there are 10 homes for them to preview, and most of those are subject to short sale approval.

Again, if you are thinking about purchasing a home to take advantage of the first time home buyers tax credit that expires November 30th of this year, you should start getting all of your ducks in a row now.  Not only are we running out of time for full mortgage approval during the process, but the number of homes that are available has been dwindling.

One of the things that really gets my goat (ok, that was an oldie but it applies) is the lack of sellers disclosures on bank owned homes.

In Michigan if I decide to sell my own home I am required to provide a written sellers disclosure about the condition of the home.    Are there any known electrical problems? I better put it on the disclosure if there are.   Any history of infestation? Another question that is answered on the sellers disclosure by you or I if we are selling our homes.

Bank owned homes?   Nothing.  Nada. When I call for disclosures for my buyer clients I receive the forms back with a big X on them and language usually stamped that says something like:  “Disclosure exempt - bank owned”

Not even the Federally mandated lead base paint disclosure is filled out by the owners of these homes.

My advice to home buyers: Have a home inspection.   Have a thorough home inspection.  Make sure the utilities are turned on to the home prior to your inspector arriving.  You only have the one chance to get to the bottom of the condition of the home.   If you skimp and decide to save some money by not having the home inspection, chances are you will be sorry later.

Talk to your buyers agent if you are purchasing a foreclosure in Macomb County MI.  Ask him / her for a list of home inspectors that you can interview and choose one of them.   Or, you can ask your family or co-workers for a recommendation. Do not expect disclosures about the condition of the bank owned home to be given to you.

Just when we think the housing market in Macomb County can’t take much more stringent lender guidelines there is a new curveball thrown in to the mix.

As of October 1st of this year those new potential home owners who are using an FHA mortgage will have to really do their homework if they are going to purchase a condo.

“Spot approvals” which used to be the way to obtain FHA financing on a previously unapproved condo complex is gone.  Now there are new guidelines in place in order to obtain FHA - HUD approval on condos which include:

• Restrictions to how close a condo can be to a major highway or military field.  (How many condo complexes back up to major roads in our area?  Are near Selfridge?)
• Restrictions on how many condos in a complex can be owned by one party. (If a builder still owns many in the complex, this could be an issue.)

These are just a couple of the changes to receiving HUD approval for a condominium complex that I am reading. (Click here for a link to the changes) I can already envision the first few months of this new change in FHA guidelines being months of confusion for mortgage lenders, buyers agents and potential condo buyers.  Until we are fully implanted within this guideline and have a few transactions go through the hoops we are all going to need patience and the guidance from our mortgage professionals prior to writing an offer on a condo.

Please talk to your mortgage lender and your buyers agent prior to looking at condos in Macomb County.  A bit of research by all of us involved will help to make the process smoother for you.

Kris Wales - A Macomb County MI real estate agent
Search homes for sale in Macomb County MI

In order to keep my Michigan real estate sales person license in force I am required to attend 6 hours of continuing education each year.  Many real estate agents will say this is a waste of time as we are continually educating ourselves throughout the course of the year with each client that we represent, but I’m one of the few that believe that 6 hours of mandated class room time is just not enough.

Think about it:  We represent our buyer and seller clients in one of the most expensive transactions that they will ever make.   We help people before, during and after their real estate transaction.  We encounter different scenarios with each transaction.  I can honestly say that not 2 purchases or home sales have been identical in the 12 years that I have been a full time real estate agent in Macomb County.

During the last few years as the real estate market has been so topsy turvy and we now have foreclosures and short sales thrown into the mix it has become even more imperative that we learn as much as we can to help guide and assist our clients.

Todays continuing education class was taught by Jack Waller, of NCI Associates, Ltd.  It’s the first time I’ve attended one of his classes and it was intense.   He touched on real issues that were happening every day in our industry, as well as legal cases that have made their way through the courts here in Michigan as well as across the country that affect our business and how these issues affect our clients.

I was also reminded today of why it is that I do what I choose to do: It’s interesting, it’s important, and I feel we make a difference in the lives of the people we help.  Especially today. My local home owners and home buyers are even more confused and concerned about the real estate market and they are trusting professionals to help them.

It’s a wonderful reminder to me about how much we do help when my name is referred by a past client, when you pop in here to ask a question, and when you simply send an email that says “Thanks, that helped..”

Thanks Mr. Waller. You made a difference today.  You helped.

~Kris Wales~ A partner for your real estate needs in Macomb County MI

One of the important documents that you receive at the closing of your new home will be the property transfer affidavit.    It is very important that you remember to turn this document in to the city or township in which the home is located.

You will have only 45 days in which to do so or the city/township can fine you.  (Not much fun finding out you have to pay hard earned money for simply forgetting to do this.)

While you are at the city/township office you will also be turning in your Homestead Exemption form (if you are applying for that exemption.)  This is also a very important document as it will mean the difference of 18 mills added to your property taxes if you qualify for the exemption and fail to file this form.

Last week I visiting the Macomb Township municipal building to turn in these documents for one of my buyer clients who recently closed on a home in Macomb Township.   I made sure to have copy of each document stamped “received” by the clerk in the assessors office so that there is proof that these documents were in fact turned in.

Keep your stamped copies as proof - it will be the only way in case of an error for you to prove you actually performed your obligation in a timely manner.

Kris Wales - A Macomb County MI real estate agent - A partner for your real estate needs.

I wrote this article the other day and published it on my first time home buyers blog, and then decided to add it here.  (Something I don’t normally do - I don’t like to duplicate content as it appears to be spammy. )

This is so important though that I broke one of my own rules. Many many potential home buyers in my area (Macomb County MI) are going to be more than a bit disappointed if they wait until October or so to begin to look for a home and expect it to close before the deadline for the first time home buyers tax credit.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

BUSINESS DAYS LEFT BEFORE THE EXPIRATION OF THE 1ST TIME HOME BUYERS TAX CREDIT - 96

JULY  -3

AUGUST -20

SEPTEMBER -21

OCTOBER -22

NOVEMBER-20

Here is a breakdown of how these business days will be spent during a typical home purchase transaction:

Please remember:  You must be the owner of your new first home by the end of November in order to take the 1st time home buyers tax credit.   There has been much speculation about it being extended, but as of this writing it has not been extended.

Search Macomb County homes for sale

I was out and about yesterday showing homes in Chesterfield Township (Macomb County MI) and realized that there are many wonderful homes and condos for sale under $100,000.  (Perfect pricing for those who are buying for the first time and are going to take advantage of the 1st time home buyers tax credit!)

If you click here you’ll be taken to the homes that are currently on the market for sale in Chesterfield Township with 3 bedrooms and under $100,000.

Chesterfield Township has so much to offer:  Outstanding school districts (L’anse Cruese and Anchor Bay school districts are within it’s borders) as well as its proximity to Selfridge, Lake St. Clair and many public parks.

The young lady that I showed homes to yesterday was impressed by the neatness of the subdivisions as well as the close proximity to shopping centers and Anchor Bay.

~Kris Wales~  A Macomb County MI real estate agent and partner for your real estate needs.

Search Macomb County MI homes for sale Important dates to remember about the 1st time home buyer tax credit.

One of the questions that I was recently asked by a Macomb County caller was if the 1st time home buyer tax credit could be used with the purchase of a condo and not a single family home.

The answer is a resounding yes. A condo is a home.   Just because there are common areas within a condominium complex does not make it less of a home for the owners.

One of the areas of Macomb County that is showing some real affordability for first time home owners is Shelby Township.   There are currently 21 condos on the market in this northern Macomb County township priced under $80,000.   Many of these condos also would qualify for FHA financing.

**Please remember the (up to) $8000 first time home buyer tax credit has an expiration date.  You must close on the purchase of your new home by November 30th of this year.   Plan ahead please - we are now experiencing approximately 45 days from contract to closing.  I expect that time frame to increase as we head into fall.**

~Kris Wales~ A partner for your real estate needs in Macomb County MI

The City of Warren in Macomb County MI saw some reduction in the
amount of homes going on the market last month (June of 2009) compared
to the same period last year.

Homes listed June 2009:      262

Homes listed June 2008:     340

The average total days on the market also showed a nice drop in June ‘09
compared to the same period in 2008:

Days on the market June 2009: 127

Days on the market June 2008:        206

One of the areas though that wasn’t good to see were the sales prices.
Of the 131 homes that sold in Warren MI in June of 2009 almost all of them
were  sold for under $100,000.

Homes sold in Warren MI in June 2009: 131

Homes sold in Warren MI in June 2009 under $100,000: 122

That’s a bit scary.  It’s also a strong sign that if you need to sell your home
you had better price it to sell keeping in mind the foreclosures & short sales
in your neighborhood.  Likewise, if you don’t have to sell, don’t. Wait until
the real estate market recovers a bit.

If you would like home sales information for your area please don’t hesitate
to contact me.  I would be happy to do a detailed analysis for you.
No pressure, just conversation.

**All data is provided courtesy of the real estate agents and brokers with  Mirealsource™
and is deemed to be reliable but not guaranteed.**

~Kris Wales~  A partner for your real estate needs in Macomb County MI.

I think home sellers will find the news much more valuable now than ever
before.  If a home seller has balked at accepting an offer on their home from
a buyer who is using an FHA or VA mortgage they should pause and look
at this chart:

Over 1/2 of homes that sold during the month of June (2009) with purchasers NOT paying cash were sold with FHA & VA mortgages for the financing.

This really is a stunning amount of homes that were sold with these mortgage
products and I predict we’re going to be seeing much more of this.  I think it’s
fabulous!

Home buyers are finding that the FHA and VA mortgages work very well for their needs and sellers are now finding that to balk at accepting a buyer with this type of mortgage would be foolhardy.

~Kris Wales~  A Macomb County MI real estate agent