The National Association of Realtors needs Realtor® and consumer assistance.  We are asked to contact our members of Congress to co-sponsor HR 3044, a bill that would impose an 18 month moratorium on the code.  We need to temporarily stop the mandatory use of the appraisal management companies.

            As the housing market may be on a slow recovery, the new Home Valuation Code of Conduct (HVCC) is causing havoc in the market place by placing undue financial cost on the home purchaser and other issues with the appraisers.

            As we all know, appraisers are taking a beating over the housing markets past increased values.  Due to new regulations, in most cases for an appraiser to be assigned to a job for a Fannie Mae or Freddie Mac loan, they must belong to an appraisal management company (AMC).  The AMC has overhead to pay.  Appraisals that used to cost $250-$350 are now costing $375-$550 per assignment, meanwhile the appraiser is taking a pay cut to work for an AMC that the government has so kindly instructed the Fannie Mae and Freddie Mac lender to use.  Currently, it's not a good scenario. 

            Appraisers are supposed to stay in familiar known areas.  The AMC apparently sends assignments to the appraisers that will take the least amount of pay.  The chosen appraisers are sent any where and everywhere.  These appraisers aren't always familiar with the areas, causing bad comps and once again, bad values.  Only this time the bad values are swinging the other way, too low.  Not all appraisals are low, just enough to make everything difficult and weary.  Purchasers are paying in advance for the appraisals then the low value causes the transaction not to close.  The purchasers do not get a refund.  This practice also violates the appraisers USPAP Code of Ethics. 

            The goal at the beginning was to create a wall between the lender and the appraiser.  The government thought the lender / appraiser contact was one of the roots of the housing value problem.  While separating the 2 maybe a good idea, there has to be a full plan for success.  There currently is no plan.

            We understand that for the Chase Banks, Wells Fargo's and Bank of America's the use of an AMC is needed because of loan volume, let's take a step back to make a productive plan for all.  If the current issues excel, the volume won't be a worry.

 In the recent issue of REALTOR, September 2009, the National Association of Realtors® explained the issue completely.  They have asked that we help.  To see a list of sponsors please visit www.govtrack.com.

Angie Ridley
www.CompleteRealtyLLC.com
www.AngieRidley.com

Business decisions are often difficult to make.  Moving Complete Realty, LLC's listings from the Flint Area Association of REALTORS® to © Realcomp II Ltd. (Realcomp) was a thought out process.  Client satisfaction was the primary focus. 

 The Flint Area Association of REALTORS® has been very good to Complete Realty, LLC for many years.  The Flint Area Association of REALTORS® consists of approximately 850 members.  © Realcomp II Ltd. consists of approximately 11,500 members.  Complete Realty, LLC agents with Realcomp agents are able to serve all of southeastern Michigan through the thumb to Saginaw and way beyond.  The goal of Realcomp is to become Michigan's state wide MLS.  There are approximately 24,000 REALTORS® in Michigan and half of them belong to Realcomp, the other half are split among smaller associations, 3500 members and smaller.

 In addition to Realcomp's 11,500 member's listings, the service also includes all of the listings for the Flint Area Association of REALTORS® and Lapeer and Upper Thumb Association of REALTORS^® in one search, about 12,500 REALTOR® listings.  Thus making searching for homes for clients very easy.  The public site is www.MoveInMichigan.com .  Other searches available to agents include Ann Arbor, Jackson, Lenawee, Monroe and West Central Association of REALTORS® (Big Rapids).

 Angie Ridley, Broker of Complete Realty, LLC is EcoBroker Certified^® therefore Complete Realty, LLC has committed to being "Green" in the real estate industry.  After we meet face to face, Realcomp's online forms (Instanet) auto fill all the paper work needed for purchases or listings.  Complete Realty, LLC has the capability of emailing all forms for signature with electronic signature capabilities.  Our clients save money on gas, time, ink and paper.  A true money savings all while providing the face to face, one on one service clients deserve and aspect.

 Complete Realty, LLC clients have access to all real estate documents 24/7.  24/7 a person can log into their account to review activities and documents.  A calendar keeps the clients updated on task competed.  This is also true for lenders, title companies and all others involved in the real estate transaction.

 If a clients would like to search homes in a specific area, no problem. Give us the streets and we can map the prospective listings. 

 Technology is what we make it together.  The real estate industry is changing fast.  Complete Realty, LLC is here to assist all generations with transactions.

Angela K. Ridley, MI RE Broker, MI Notary,  EcoBroker Certified^®
www.CompleteRealtyLLC.com
mailto:  Angie@AngieRidley.com
Flint:  810 744 4600 Fax: 810 936 4395

Angie's Real Estate Corner, a little of this and that blog.  

2009 Michigan Women's Council of Realtors® President -Elect  

Paperless with Instanet Transaction Management, e-signatures and much more...

I attended  Lake Pointe Women's Council of Realtor's Business Resource Meeting.  The speaker was Michael Lothamer.  Attendance was great.  I was amazed at what I learned.  I look at Michigan property taxes very differently now. 

Do you tell your clients that they must fight both the Assesed Value and Taxable Value at the same time to win a case?  Did you know there is property tax relief for people poverty stricken?  There is so much more...

If you didn't know this information, you should ask Michael to speak to your members.  I understand he speaks for "free".  

Transition to a New Administration:  People and Policies:  Regulatory Issues Forum. 

            Obama will support housing per NAR.      In Illinois, Obama advocated tax credits for property owners and fought to end predatory lending.  He has advocated for a stronger FHA and voted for the NAR-backed economic stimulus bill, which increased loan limits in high-cost areas.

            External events will drive the overall agenda about housing decisions.  No one can predict what will happen 48 hours from right now.  No matter what candidate won, the reactions to the housing industry would be similar. 

            Angry Republicans will be an issue to be dealt with.  The Republican Party feels like they have been treated unfairly.  The forum suggested the Republicans will no longer be total big business driven and the Democrats and Republicans will work better together and see views more similar in the near future.

            Issues New President is faced with:

1.       Fix market failure, how to get the private market working better

a.       Buyers have no confidence in the market or banks

b.       Banking investors have no confidence in the mortgage lenders due to past undisclosed high risk

2.       Mortgage Broker Reform

a.       Loan to loan scoring system, from the mortgage broker to the investor

3.       Cycle of Foreclosure

a.       The cycle is explained as a home in the neighborhood goes into foreclosure, this affects the value of surrounding homes and a circular events starts with no way to stop.

b.       Possible proposal, allow judges to modify the terms of the loans already made and the servicer just has to live with it.

4.       FHA issues

a.       FHA is the most trusted type of loan

b.       FHA is expected to run over 50% of the market

c.       Can FHA get too big?

d.       Is FHA ran properly, if not, in the future will we have another bail out?

Realtors need to be more involved in RPAC and talking to the local and state reps.  Nothing is more effective than when a REALTOR® walks in an office and explains how a decision will impact the market and the REALTORS® job.

HUD employees start to transition before the election.  HUD supplies room for Obama’s HUD staff and their own systems.  Because Obama separated himself from the lobbyist he has less starting staff. 

Currently the 2^nd part of the bail out is waiting to be released.  NAR is waiting to find out if it will be released with out strings.

Many of the US notes are held by foreign countries, these countries have no interest in assisting the US.  If it weren’t for China right now, we wouldn’t be selling any mortgages or homes.  Is that good or bad?

RESPA Change:  HUD says its proposed changes to RESPA -- which include a new, four-page Good Faith Estimate that's intended to help home buyers comparison shop for a loan, title insurance and other settlement services -- would save consumers $8.35 billion a year.

            RESPA change also involves at the settlement table a new HUD 1 form, Good Faith Estimate and a mandatory script to be read out loud.  This may cause a raise in the settlement cost, more time and less transaction per day for the settlement company.

            Question asked:  Could Obama change the new RESPA Rule?  Congress could take action not to fund.  This must be revisited by the Obama team per forum speakers.  If rule is dated properly, no one can touch it except to create a new rule.

Active Residential Listings: 6,501 -- Foreclosures:^[1] 854 / 13.1% -- Short Sales: 671 / 10.3%
Active Residential Listings in Genesee County: 5,020 -- Foreclosures:^[1] 622 / 12.4% -- Short Sales: 557 / 11.1%
Active Listings: Multi-Family -- 132 -- Vacant Land: 1,758 -- Commercial: 443
Active Listings in Genesee County: Multi-Family -- 123 -- Vacant Land: 1,228 -- Commercial: 351

Residential Listings Activated Last 7 Days: 245 -- 1 Year Ago: 311 -- 2 Years Ago: 384
Multi-Family Listings Activated Last 7 Days: 2 -- 1 Year Ago: 12 -- 2 Years Ago: 9
Vacant Land Listings Activated Last 7 Days: 24 -- 1 Year Ago: 14 -- 2 Years Ago: 39
Commercial Listings Activated Last 7 Days: 6 -- 1 Year Ago: 7 -- 2 Years Ago: 15

Residential Listings Sold Last 7 Days: 101 -- 1 Year Ago: 121 -- 2 Years Ago: 147
Residential Listings Sold Last 30 Days: 508 -- 1 Year Ago: 535 -- 2 Years Ago: 517
Residential Listings Sold Year to Date: 4,482 -- 1 Year Ago: 4,424 -- 2 Years Ago: 4,561
Residential Listings Sold Year to Date in Genesee County: 3,525 -- 1 Year Ago: 3,416 -- 2 Years Ago: 3,719
Multi-Family Listings Sold Last 7 Days: 2
Vacant Land Listings Sold Last 7 Days: 0
Commercial Listings Sold Last 7 Days: 0

Average Listing Price of Active Listings in Genesee County: $136,811 -- Median Listing Price: $116,995
Average Listing Price to Selling Price Ratio in Genesee County Last 7 Days: 76% -- 1 Year Ago: 78% -- 2 Years Ago: 83%
Average Selling Price in Genesee County Last 7 Days: $78,339 -- 1 Year Ago: $81,757 -- 2 Years Ago: $117,252
Average Selling Price in Genesee County Last 30 Days: $72,215 -- 1 Year Ago: $92,358 -- 2 Years Ago: $113,593
Median Selling Price in Genesee County Last 7 Days: $63,300 -- 1 Year Ago: $75,950 -- 2 Years Ago: $108,000
Median Selling Price in Genesee County Last 30 Days: $53,700 -- 1 Year Ago: $82,708 -- 2 Years Ago: $102,000

Average Foreclosure Listing Price of Active Listings in Genesee County: $62,787
Average Foreclosure Selling Price in Genesee County Last 7 Days: $50,447

Statistics Updated: 10/05/2008 5:36PM

BookAShowing.com appointments today: 66 -- Month To Date: 467 -- Year To Date: 28,207 -- updated: 10/05/2008 4:56PM
 

Agents have contacted FAAR staff with information in regards to a gentleman who is trying to show homes and write purchase agreements.  According to the state he does not hold a license nor has he applied for one.  His name is Antonio Fluker of Innovative Realty.  Please be aware of this situation and if you have any contact with this individual please contact the association  (810)-767-6330

Complete Realty, LLC goal is to keep the public and real estate agents safe first!  Angie Ridley

Coach Steve from Detriot Pistons vist the Flint Chapter Women Council of Realtors (edit/delete)

  Coach Steve from the Detroit Pistons!

Flint Women's Council of Realtors,  September Business Resource Meeting
September 10, 2008
Flint Golf Club
11:30 Networking
Noon Lunch
 
Guest Speaker: Coach Steve Moreland from the Detroit Pistons
"Pyramid for Success"
 
Cost: $18.00, includes Lunch
 
RSVP: Stephanie Hoffman (810) 577-1750
Lyn Black (810) 287-3768

 

The Flint Area Association of REALTORS®, Flint Journal and Regent Broadcasting of Flint have partnered to put together Community Open Houses starting the weekend of August 16, 2008 and continuing until November 1, 2008.
 
These Community Open Houses will be held in different communities each Saturday for 11 consecutive weekends. These communities include: Flint City Wide, Fenton, Lake Fenton, Linden, Flushing, Montrose, Westwood Heights, Davison, Kearsley, Genesee, Swartz Creek, Carman-Ainsworth, Clio, Mt. Morris, Lakeville, Beecher, Grand Blanc and Goodrich.
 
The Community Open House is designed to bring together the entire community, including local businesses, schools, REALTORS®, prospective buyers, the media, etc. to help people get a feel for the entire community to be sure it's a good fit for them. The Community Open Houses will run from 12pm to 4pm and will be promoted weekly in the Flint Journal, various Regent Broadcasting radio stations and MLive.com. This promotion will reach out to hundreds of thousands of potential customers and will be available via interactive websites, in print and on radio.
 
We are currently partnering with several area Chambers of Commerce and local businesses. We thank those who are currently working with us and welcome anyone who is willing to participate. Together, we can demonstrate that Genesee County is a wonderful collection of communities with a multitude of positive assets to offer any and all families.

 

To advertise in the community open house, contact your local Flint Journal or Community Newspaper representative. Deadlines: To be included on the Community Newspaper Map, ads must be received 10 day's prior to publication. All other advertisement is 2 days prior to event.

 

For more information on the Community Wide Open Houses, contact the Flint Area Association of REALTORS® at 810.767.6330 Your Flint Journal Sales Consultant at  (810) 766-6152.

Community Open House Dates

 I am going to try to keep this post simple and basic.  Each state and lender may have different laws and rules. 

 I am consistently about people losing their homes because they are not seeking advice from a Realtor®. 

 1^st, call the lender for arrangements.  Ask for a temporary arrangement, if permanent will not be granted.

Options:  Deed in Lieu, the lender takes the deed with out foreclosure process; this could save the homeowners credit.

 Foreclosure:  the process of a bank reposing a home. 

            Stages:  1.  homeowner is late on payments

2.      3-4 months later, bank sends account to attorney to start the foreclosure

3.      ask the bank “Deed for Cash” homeowner gives deed, bank may give homeowner moving money

4.      homeowner recieives notice of “Sherriff Sale”

5.      at the “Sherriff Sale” the loan is purchased at auction, usually purchased back by the bank, then the bank can sell the property later to recoup loss

6.      after “Sheriff Sale” is home is occupied, homeowner can redeem home for 6 months (home owner can repurchase home from bank)

7.      ask the bank “Keyes for Cash” bank may pay homeowner to vacate premises

8.      if home is not occupied, MI law says bank can take over 15 days after “Sheriff Sale”

Can a homeowner sell during foreclosure?  Yes, until the last day of the redemption period.

 Short Sale during Foreclosure:  A short sale is when the bank will agree to take less then the homeowner owes the bank.  

                        Points to consider:  Will the lender consider the debt paid in full?

                                                Is the lender going to attempt to recollect the difference?

                        Will you get a 1099 from the lender? 

Will you have to pay taxes on the amount forgiven?

Purchaser must prove financial situation has changed.

Exemption “t”, as designated in the Michigan Transfer Tax Act, sets forth that a seller may seek an exemption from paying the state transfer tax if the following criteria are met:

With property values and corresponding SEV declining due to the struggling economy, home owners and real estate agents first took notice of the exemption’s possible applicability under the state transfer tax. However, absent an official interpretation, there was little awareness of its proper application.

The opinion from the Attorney General uses examples to show how the application would apply. One example illustrating application provides:

If the SEV of the principle residence when acquired in 2006 is $74,000.00 and the SEV when transferred in 2008 is $72,000.00 then criteria one and two above are satisfied. You can establish the true cash value by doubling the SEV at the time of transfer. In this case the true cash value is $144,000. If the sale price in 2008 is $140,000.00 then the sale does not exceed its true cash value. All three criteria are satisfied and the exemption would apply.

Source:  Brian Westrin, MAR Manager of Legal Affairs

Public Act 96 enables a person who has established a new principal residence to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner’s principal residence that is not occupied and for sale by submitting a Conditional Rescission of Principal Residence Exemption Form #4640. The conditional rescission allows an owner to receive a PRE on his or her new property and on previously exempted property simultaneously if certain criteria are met:

• the property is not occupied,

• the property is for sale

• the property is not leased or available for lease

• the property is not used for any business or commercial purpose

*The opportunity to apply and qualify for a conditional rescission begins for the 2008 tax year and is not retroactive to previous tax years.

To qualify for the conditional rescission in 2008, Form #4640 must be submitted to the assessor of the local unit of government where the property is located on or before May 1, 2008.

Source:  Brian Westrin, MAR Manager of Legal Affairs

MAR Legal Counsel- Short Sale, Foreclosures and Commissions  

For agents and sellers

Greg McClelland, Michigan Association of Realtors General Counsel, spoke today about Short Sale, Foreclosure and Commission issues.

Ever go tot he court to find foreclosure records?  The records may not be there.  In MI foreclosure can happen by advertisement with out court supervision.  The property is also posted with "Notice of Foreclosure".

Always-always have a title company run pre-commitment.  The pre-commitment will tell you how many mortgage and what mortgages are on the property.

Michigan redemption (abandonment) period is 6 months.  If the home is abandoned, the period can be shortened to 15 days. 

A myth:  2nd and 3rd mortgages go away after the sheriff sale.  This is a myth.

Before you list a short sale, the following paper work must be done and sent to the Loss Mitigation Department:

• Hardship letter
• Financial statements
• Market Value
• Settlement statement

Bank will never tell you what they will accept.  Just take offers until they get one they like.  If the bank doesn't sign the short sale Purchase Agreement, the Purchase Agreement should state, "Subject to Lenders Approval".

Can agents in anyway get the bank to respond quicker?  NO

If the agent or broker doesn't follow through on a sale because the commission is cut, the agents / broker is in violation of Fiduciary Responsibility and can be sued!  At closing, each broker should sign a commission agreement to avoid further action.  According to Greg, once the agent accepts the commission at close, there is no more recourse.  Some brokers attempt to get commission from the listing company, that only caused hard relationships later.

A buyer's agent does not have to show REO properties as long as they explain to the buyer why.

CASH FOR KEYS!!  This is a new practice with lenders.  The lender themselves will approach the home owner.  The lender will ask the homeowner to get estimates for renting an apartment and moving van expense.  Lenders will send the homeowner a check for the move in return for the keys.  If you have the listing, make sure you advise your client smartly and ethically.  Don't get sued!

Consumer will not pick an agent based on who mailed the best pie recipe post card.  They are looking for one that can provide facts.

How do you answer the question:  Why should I buy now if prices are still going down?

Because of the changing market, you may not financially qualify tomorrow for what you financially qualify for today. 

The government is getting involved in the economy by lowering credit card and short term loans.  The impact of this action the interest rates will raise. 

            Price Today $150,000 @ 6% = $899.53 per month
               Price Later   $138,000 @ 7% = $918.12 per month

 MI 2008 Projected Foreclosures 28,239.
         MI homes affected by the 28,239 is 1,442,570.

The 2008 waive of foreclosures is not because of loans, it's because the values are declining so people just walk away.  The people that are walking away don't realize the market will come back and real estate is a cycle.

Seller's you have to visit this site:  How do you want the buyers to remember your home?

Virginia Tatseos Stage-Show-Sell
Bloomfield Township, MI
More about me...
Stage-Show-Sell

Cell Phone: (248) 421-8201
Email Me

The Real Estate Training Academy in Burton, MI is offering the 40 hour Salesperson Pre-licensing class.

The class date starts 03/31/2008-04/11/2008.  The class runs Monday - Friday 6pm - 10pm for 2 weeks.

Cost:  $225.00 and this includes materials.

Location:
Real Estate Training Academy, REPlace
4284 E Court St
Burton, MI 48509
810 744 2078

Angie@AngieRidley.com

Please call for your reservation asap.  The class is filling up...

Print, fill out and send...

Real Estate Training Academy

Registration Form

Must be return 5 days before class start date.

Class: Salesperson Prelicensure Class $225.00 Text included

Class Date:  March 31- April 11, 2008, M-F, 6pm - 10pm

Student Full Name:  ____________________________________

Address:  _____________________________________________

City, State, Zip:  _______________________________________

Phone:  ________________________Cell:  _________________

Last 4 of SS#:  ___________________DOB:  ________________

Payment:  Signature ___________________________________

Date:  _______________ Charge $_________________to my

_____VISA or ____MasterCard #_________________________

Expires ____________________ 3 Digit Code_______________

Mail, Fax or Email to:

4284 E Court St

Burton, MI 48509

Phone:  810 744 2078

Fax:  810 936 4395

Email:  Angie@AngieRidley.com

Educational Coordinator

As of today the number of homes pending (waiting to close) is 587 in Genesee County, MI.

 Solds Stats According to the Flint Area Association of Realtors.

	2008	2007	2006	2005	2004	2003	2002	2001	2000
January	326	282	302	324	274	327	181	181	222
February	394	340	307	347	340	299	215	215	386
March		448	460	523	439	402	450	372	431
April		447	417	562	485	462	505	401	425
May		404	482	582	513	448	556	462	473
June		468	490	592	671	481	592	497	561
July		415	412	486	577	523	531	424	491
August		476	515	607	615	546	510	510	518
September		339	429	576	540	488	403	403	382
October		414	474	459	528	545	416	416	421
November		381	409	408	488	386	343	343	338
December		343	387	401	497	441	365	365	389
Totals	720	4757	5084	5867	5967	5348	5067	4589	5037

Are we really doing that bad?  I don't think so...

The difference really shows in the average price, from $103,604 to $76997 in Feb. 08.

There are currently 18 listings for every home sold.

Step 1.  Getting Prepared

• Contact your mortgage lender for PREAPPROVAL. 
• Know what you can afford.
• Explain to Realtor your needs.

Step 2.  Previewing Homes

•  Take pad of paper, ink pen and camera.
•  Note all the likes and dislikes.
•  Ask yourself, how does this home make me feel?  Do you feel enclosed, comfortable or overwhelmed with too much space?
• Note how much updating you may need to do.  What are the approximate costs?

Number 1 question, do people really purchase the first home they look at?

      Yes, many people purchase the first home they look at.

Step 3.  We Found a Home!
Once you have selected a home, have agent do a Market Analysis of the area to help you determine offer price. (Compare apples to apples)

Items that will affect your offer:
      1.  Property Condition
      2.  Property Improvements
      3.  Market Conditions
      4.  Seller Motivation

Step 4.  Make Your Offer

Your agent will assist you with the offer.
      Discuss home inspections, home warranties and well test....

Step 5.  What to Expect from Owner Seller

• Agent will present offer to seller's agent or seller.
• You will know the result, accepted, counter-offer or rejection immediately.
• Fast negotiations.
• Inspections
• Get Home Owners Insurance
• Close

            What to Expect from Bank Owned Seller

• Agent will submit offer to seller's agent or bank.
• Bank can take offer and others.  Don't plan on a response for 2-4 weeks.  If you get one sooner you are blessed.  Yes, they can still receive offers while you are waiting.
• Bank will provide their own "Addendum" specifying the terms.
• Inspections
• Get Home Owners Insurance
• Close
• Bank will charge you a daily fee if transaction is not closed on date specified in the purchase agreement.
•         Timely, purchasers are usually upset about the length of time it takes the Bank to respond.

            What to Expect from HUD

• Sign Contract
• Earnest Money is not negotiable. 
• $500 for homes below $50,000
• $1000 for homes $50,000 and above
• Must be in form of a cashiers check made out to Real Estate Brokerage
• Agent submits offer on-line
• M-F expect a 24 hour response
• Have all inspections done with in 15 days of accepted offer.
• Get Home Owners Insurance
• You must close with in 45 days.
• Easy, fast and most of all, very affordable.

The Last Step:  Closing, the Home Becomes Yours.

• Your lender or real estate agent will contact you with the final $'s you must bring to close.
• Bring your Driver's License
• Your lender or title company may request a last minute item, be prepared.
• The closing documents may be signed on one day, reviewed then finished the next.
• In most cases you will only be required to be at the title company one day.