Farmington Hills Real Estate and Events talk Michigan

A while back I wrote an article here on Short sale scams and mortgage fraud.  Last night I got this comment on the blog.

I am interested in purchasing a home that is listed as a "Short Sale". My agent called the selling agent and found out that the number we are about to offer is currently better than the other offer they have received. But the selling agent advised us that his client is looking for $5000 on the side before they'll submit the offer to the bank. Is this some sort of scam? My agent says they can add an addendum to the offer that says we'll pay $5000 for a piece of furniture that may be left behind or for some appliance to be left by the seller. This way that $5000 won't go to the bank but to the seller. Again, is this fraudulent? It doesn't quite sound right regardless.

 So are you saying that there is nothing illegal about this? I'm going through this now where I want to put in an offer for a "Short Sale" house and the selling agent told my agent that the seller requires $5000 cash before he'll accept the offer, and then submit it to the bank. 

WHAT DO YOU THINK AS REAL ESTATE PROFESSIONALS ABOUT THIS CONDUCT OF THE REALTOR AND SELLER?

 This how I replied............

I would call the bank and report this.  It will take some digging to get to the right person.  Giving the seller $5000 is wrong and unethical.  The seller's agent is just as guilty.  I might even turn him into his broker,  local newspaper, and local real estate board.  It's not illegal, it's just unethical!

Go to linked in or the bank website.  Find as many names of bank employees as possible and send out a mass email.  Somebody will respond.  Don't be afraid of emailing the president, ceo, vice president of the bank.  They will respond!  And you may not or might get the deal.  Your agent can't do this because of our code of ethics that says he can't contact the seller.  BUT YOU CAN!  Use every variety of name combo to get it thru.  For example if the bank presidents name is john smith @ charter bank.  Then do JohnSmith@thebanks.com or john.smith@thebanks.com or j.smith@thebanks.com or jsmith@thebanks.com   Don't tell the other agent or your agent that you are going to do this.

But of course if you really want the house and want to help the seller scam the bank out of money then give the $5000.  The $5000 should go to the bank and not to the person who won't pay their bills and honor the contract they signed.

I THINK IT IS A SCAM....WHAT DO YOU THINK AS A REAL ESTATE PROFESSIONAL?

 Over the years as a contractor I have done $100,000 on a hand shake when I trusted the person.  So I believe in the old adage is that you are only as good as your word. 

 This is why I love Plymouth Michigan.  They is always something going on for the local residents.  So if you live in Plymouth Michigan join in the fun and enter your snow man into the City of Plymouth MI Snowman Contest.  I know you can design something unique that will catch the judges eyes. 

Snowman Photo Contest

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Here is the latest list of Farmington MI foreclosures.  There are currently 54 Farmington MI foreclosures and they have been on the market 146 days.

If you would like more information on any of these Farmington Hills MI foreclosure homes feel free to call or email me.  I will be glad to send you the full listing via email so you can see if they fit what you need.

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 One of my clients sent me this email today

Hello Russ

Right now everything is great.  I would like to pick your brain a bit actually.  We are looking to do some home improvements in the early spring.  We are realistic about not living there forever.  In fact, I see us moving in the next five years.  I wonder if you have any insight on how to most effectively prioritize home improvement projects projects based on return in value.  Right now it seems on zillow (I don't know how much I trust it) our home is being valued between 102k and 103K depending on the day.  That seems to be higher than similar homes in the area.  I also want don't want to price ourselves out of the market.  Here are the projects we had in mind.

 -Main upstairs bathroom (new tub with shower fixtures, tile floor, vessel sink and vanity while moving door flush with the hall way adding two more feet to the restroom and storage space inside the bathroom.)

-Stoop and concrete patio off of the back door to replace crumbling steps.  About 10 by 12 to 12 by 14.

-replace sidding, door and roof of garage.  (at one time we were thinking about putting in a two car garage but I'm not sure we would get the money out of the additional work.)

-Tile kitchen floor to replace poorly installed pergo.

-Redo front stoop as some brick is crumbling.  

We already replaced the gutters and painted the whole house interior.  Also did minor things to have more concessive hardware for the plugs and switch plates.  Again any insight would be appreciated. 

Here was my response: 

I am glad you both are doing well. 

The front and back porch and garage roof are more or less maintenance items that you need to do.  But my thoughts are on where the Michigan real estate market is headed.... it is going to be the same in five years.  I think the Michigan real estate market is going to go up very little in the next five years.  The banks and lenders are just too stingy with appraisals for home values to rise much.  When the banks let loose then home values will rise. 

My opinion is to do what you get pleasure out of and what you and Katie will enjoy.  As to get the money back out, there are no guarantees at this time.  I honestly don't think you will get the dollars spent back out of the house.  So many people don't do any repairs or updating until they sell their home.  They miss out on enjoying the updates or repairs.  I think there is a "good feeling" when you get a project completed.  It makes the wife happy and you are getting to enjoy your home. 

There are always other things to do with the money!  But an updated and well maintained home will sell quicker and for more money than a home that is just "average".  So it is hard to tell you how much money to invest into the home.

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As we go through life we have a picture in our head of who we are.  I starting thinking about this last year when I was leafing through pictures of Marianne and I.  I realized I had been chubby for over 12 years.  In my mind I was still young and trim.  Marianne always would say I wasn't over weight.

But working out in the gym... (yes it is that dreaded time of the year when we have those resolutions to get heathy and lose weight)....I was looking at some of the people and thinking how much work they had to do.

And it made me realize again, that I was thinking I was slim and trim when actually I was one of those people too.  I wasn't that slim, athletically built 30 year.  I was that 50 year guy that had too many good years of good good and drink.

It made me realize that our whole perception could be altered.  What we think of ourselves may not be reality.

We may think we are a:

• good realtor
• good parent
• giving person
• good friend
• good worker

But what is the reality?

It may be the time of year to take a real look at ourselves and face reality.  It can be the time to make the changes to be the person we want to be...to be the person our mind and imagination have us to be.  Take the time and really look at yourself.

My thought of the day is:

Everyday is a page and a chapter in your life, Each day you are turning pages and closing old chapters and open a new chapter in your life.

2010 was a banner year for the City of Detroit real estate market as the average home sales price did go up.  In 2009 the average sales price was only $11,318.00 and this past year it moved up to $14,431.00.  Which is a little better.  Gone are the absolute steals of homes under $7,000.  Now you would have to pay closer to $10,000 to get a nice home.

Of course the theives are still stealing the copper, furnaces, and hot water tanks out of vacant homes so you most likely would have to replace them.

Even the average days on the market has gone down a little.  In 2009 it was 81 days now it is 70 days.  Of course Detroit home prices can not rise dramatically because any bank loaning in Detroit is going to look hard at the appraisal.

Of course this information is only homes that have been sold through the MLS.  For Sale by owners are not included in this data.

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Information provided courtesy of RealComp II Ltd. 

If you want to get upset about losing a house then don't listen to your real estate agent.  I have some good friends, their culture and heritage is about haggling about price.  Well we saw a nice Novi home that they really wanted.

It was a bank foreclosure listed at $185,000.  The  home was over 2300 square feet.  Well there are very few Novi homes that size that don't sell for less than $100 a square foot.  So the house was worth about $230,000. 

They couldn't wrap their head around the fact to bid more than the list price.  It was their culture, their way of life to offer lower than the list price.  Unfortunately they lost the house.  Even when highest and best offer they didn't even come close to what they should offer.

So they lost a home they really wanted because they wouldn't listen to me. We as local real estate agents see what is going on in the city that you want to buy in.  Just because your friend, or some national real estate newscaster says to bid low.....don't.  Listen to the agent that knows your market.

If you want the house, I want to help you get it.  I'm not going to get rich by having you offer $10,000 more.  I'm telling you to do it because I believe that will win you the house.  It's that simple if it's still a good value at $10,000 over list and you want the house then it may be what you should do.  If you really want it.

The Metro Detroit real estate market has changed in the last year.  Low ball bids are not working very often anymore.

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