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Posts Tagged ‘home pricing oakland county michigan’

My North Oakland County Home Sales Predictions for 2011

I going to pull out my crystal ball and take a look into the future. I figure I can’t do any worse than any ofnorth oakland county home sales predictions for 2011 the “experts” we hear on the radio or watch on TV or read about in the paper.

As I wrote in a recent blog post, currently sale prices in North Oakland County MI were up slightly in 2010 over 2009 and the current inventory is low (active listings). This sounds almost like a seller’s market and might be if prices weren’t down so much from 2008, 2007, 2006…..

When I have been updating my sales stats for various North Oakland County subdivisionsI am finding the same to be true- home sale prices seem to be stabilizing and in many cases even increasing slightly. I think some of this is due to a decline in foreclosure sales– many being replaced by short sales which typically sell for more than bank or government owned homes.

Last week I spoke to one of the larger area foreclosure brokers and he told me he expects a spike in new foreclosure listings and assignments the first 2 months of 2011 and a large increase in inventory for the first quarter of 2011, then for it to slow back down to a manageable pace again.

So my predictions:

Prices will stay about the same and maybe drop a bit the first quarter of 2011. When the inventory gets back to the current levels in the spring, prices will start to increase a bit. We won’t see the rapid increase in prices we saw in the 2000-2005 years, but I believe prices will start going up.

I think inventory will stay on the low side until more homeowners have equity in their homes again or lending criteria relaxes enough so an upside down owner can buy and rent out their current house without the draconian conditions they have to abide by today.

I believe a hindrance to the rise in home prices will be due to the ongoing appraisal problems. Appraisers need to start giving a dollar value to quality and less importance on $ per sq. ft.

My advise:

  • If you are a potential home buyer for North Oakland County MI call your agent now so you don’t miss out on the foreclosures that will be hitting the market the first quarter of this year- foreclosure listings in North Oakland County MI to not sit on the market
  • Do NOT wait until spring to start looking
  • If you are looking for a lakefront home and want to enjoy this summer on the water you need to either eliminate short sale listings from your search or get serious about finding a home now
  • The same if you want to be moved by the next school year. Don’t wait too long to start looking unless you are willing to eliminate short sale listings from your search criteria
  • Sellers- It’s hard to know what to tell you. Right now inventory is low but expected to pick up very soon with a glut of foreclosures for you to compete against. If you wait until after the first quarter you will have low inventory on your side but a quarter of foreclosures closing which will be the comparable sales appraisers will use

I  need to make a point to come back to this post quarterly to see if my predictions are on track.

Market Conditions for North Oakland County MI

North Oakland County MI Lake Information

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photo from Flickr courtesy Islandguy Jonathan H 

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Price Per Square Foot DOES Determine “Value”

If you are considering selling your house in North Oakland County or Lapeer County Michigan you can kiss those upgrades you added to your house over the years good bye! Had the house built and chose the $300 light fixtures over the $50 light fixtures? Went with a little better cupboard in the kitchen? You know- the ones that weather much better than the builders grade kitchen cabinets your neighbors went with. The ones that still look good 10 years later. And still aren’t dated.

Hope you had hardwood put in instead of liminate or carpet for your own enjoyment and didn’t consider re-sale one iota. I hope the ceramic and granite in the baths and kitchen made bathing and cooking that much more enjoyable. You know- the money you sank into those all so important rooms for both your own enjoyment, but mostly for resale. How much DID you spend on those upgrades? Probably enough for an extremely kick ass vacation.

Too bad those upgrades don’t mean diddly squat to your appraiser.

north oakland county mi real estate price per square foot counts more than condition

photo courtesy Shari Weinsheimer

north oakland county mi real estate price per square foot counts more than condition

photo courtesy Donna McNeely

 

 

 

 

 

 

 

VALUE IS IN SIZE ONLY

 Gone are the days when the consumer set value. I recently had 2 buyer offers accepted- both sets of buyers were extremely happy with the prices they were getting their respective houses for. And the appraisers for both those houses seemed to feel that size alone ruled.

House #1 was a multiple offer situation on Lake Oakland. We came to terms at $380,000 and according to the listing agent we were NOT the highest offer. Other incentives in the offer swayed the sellers our way. Then the appraisal came in $80K low. She put almost all her eggs in the above grade sq. footage of the house and didn’t take into consideration the neighborhood, school district, the upgrades, the premium lot, she used comps on “inferior” lakes…… But the one place she was consistent was in her price per square foot.

I have another sale going on currently. Buyer and seller came to an agreed upon price of $98,800. The appraisal came in at $85,000. The problem is the house is a tad under 1000 square feet. Most of the comparable sales are around 1300 square feet. I’ve been in many of these houses- and they don’t compare. Except for size. All are 2 bedroom homes with basements and garages. The house my client is buying is meticously maintained. A better quality kitchen to start with and even though the house is 25 years old, the kitchen still looks great. Hardwood floors, ceramic baths, newer carpet. The current owners seem to be the type who repair or replace at the first sign of a problem- not after the roof leaks or after the deck boards rot and break.

The only adjustments made in the appraisal were for the basics like walk-out basement verses standard basement, 1 car garage versus 2 car garage. No adjustments for location, maintenance or overall quality.

So the long and the short of it is- All those upgrades your house has that your neighbor’s house doesn’t is not going to put one extra dime in your pocket. What it will do is make your house easier to sell.

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