Ann Arbor Real Estate Talk

FHA loan limits are changing in Washtenaw County  beginning October 1st.

The Federal Housing Association sets the FHA loan limits throughout the nation and they can vary depending on socio-economic status of each county.

The FHA loan limits have been $345,000.00 in Washtenaw County.

On October 1st, FHA is lowering the FHA loan limit in Washtenaw County to $271,050.00.

What does lowering the FHA loan limit mean for you?

Well for one it means that the most popular way of financing a home the last 5 years is going to change, for the worst in my opinion. The main reason for the FHA loan popularity was the amount of down payment  you need to buy a home in is 3.5%.

According the recent rep0rt of the Ann Arbor Board of Realtors the average home price in the Ann Arbor Area for August was $203,061.00. This is a 4% increase over August 2010.

Homeowners wanting to use an FHA loan will need to pursue other avenues to obtain financing if they want to purchase a home and finance over the new FHA loan limit of $271,050.00.

FHA loan limits not the only way to finance a home

Fannie Mae and Freddie Mac loan limits for Washtenaw County are still capped at $417,000.00

Homeowners that have 20% to put down can also go with a conventional loan.

Before you start looking to purchase a home in Washtenaw County know your options, work with a LOCAL lender, who knows the Ann Arbor, Washtenaw County area.

Call us today and we can help you talk to many good lenders in the Ann Arbor Area. 734-926-9797

What was the market like in July for the Ann Arbor Area ?

Well the news for July in Ann Arbor is really uplifting. Residential sales were up 29% over July 2010 with 331 closed transactions. There were 415 sales of all property types, which is a 10% increase.

The average sale price increased to $212,663. In July of 2010 the average sale price was $160,000.

Here are the stat’s for the individual school area’s. Which is how we search for homes in the Ann Arbor Area MLS.

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Many people have forgotten the reasons we celebrate Memorial Day.

However, in the Ann Arbor Area there are many events planned where you can honor those who have died in the service of our country.

One of the events my family and I have celebrated for many years in in Saline, the Memorial Day Parade. The parade begins at 10:00 AM in front of the fire station and moves to the Oakwood Cemetery for a ceremony and wreath placing.

The Dexter Parade also begins and 10:00 AM and travels to the Gazebo at Monument Park.

In Chelsea the parade also begins at 10:00.

In Ann Arbor the Glazier Home Owners Association sponsors a parade at 10:00 AM, where kids are invited to decorate their bikes and participate. Ypsilanti’s parade begins at 9:00 AM and goes down Huron Street.

Here is a link to all the Parade Routes in Washtenaw County.

Honoring the fallen is a great way to spend an hour or so within your local communities.There are many War Memorial Monuments throughout Washtenaw County.

How many have you seen?

Enjoy you weekend but take a few minutes to reflect on our fallen men and woman.

On Ann Arbor.com today, and using the recent market data released by the Ann Arbor Area Board of Realtors, there is a comment I would like to address today.

The comment is “gotta love crooks, I mean REALTORS.

I was going to answer over there and maybe I will but I believe it needs a longer response than I like to give on Blog comments.

REALTORS Are Not Crooks

A seller and a REALTOR work together to determine the price of where a home should be listed.

The market (or current buyers) looking for a home during that time period, and what is on the market determine the value. Period

The numbers don’t lie, and if a REALTOR, looks at the recent SOLDS and currently LISTED homes it is not rocket science to determine, where the home should be listed and where it will sell.

The Problem

The problem is not that REALTORS are crooks, the problem is:

1)    Some sellers don’t look at the data, and say…”If I can’t get such and such out of my home, then I am not selling,” or “I have to get this much from my home so I can move.”

2)    The second problem is some REALTORS don’t have the guts to stand up to sellers and tell the truth. They would rather “accommodate” the mindset of the seller and list a home “over market value”, just to have a listing in their stock pile.

3)    Third, some REALTORS, don’t even do CMA’s, (Comparative Market Value Reports) they just walk through the sellers home and ask what they want to sell it for and throw it in the MLS.

Listing a home at Market Value is NOT Rocket Science, it is not a science at all. It is the professional opinion of an experienced REALTOR, looking at the historical data,current listings and pricing the home accordingly. 

Once I have studied a neighborhood, and put together a CMA, if the homeowners in the Ann Arbor Area don’t like the price, they can interview other agents to see other opinions. In fact, I encourage it.

My typical time to do a CMA is 4 hours, so by the time I meet again with the sellers I know the data, the neighborhood and am confident in my price.

The last few years,after looking at their comps I have told 10 or so homeowners that I can not sell their home for the price they want. I have wished them good luck and moved on.

Of the 10 or so, four called me back, after trying at a higher price with another agent. “Get over here and list my house, Missy, we should have listened to you.”

Others I have watched the home listed and seen price reduction, after price reduction taken until it sells sometimes a year later below what I told them in the first place.They are chasing the market down.

Some have chosen to wait the market out until home prices rise again.

Know Who You Are Hiring

Is the REALTOR you as a Ann Arbor Area home seller interviewing experienced?  Do they list enough homes to know the market? Are they familiar with the area to determine the value? Are they showing you the market data? Do they have a written out Marketing Plan?

I disagree with the comment by Towny of the AnnArbor.com article, REALTORS are not crooks, but some are not experienced and some will take any listing and “throw it against the wall,” to see if it sticks sells. And some REALTORS don’t have the guts to tell the seller the truth.

One of my favorite quotes comes from Consumer Reports in 1990,

“ Beware that some devious agents will at first suggest a very handsome price. Then, after they have the listing and the house hasn’t sold they’ll come back a with a pitch to lower the price.”

Here is a pdf version of the recent Ann Arbor Area Market Data by the Ann Arbor Area Board of REALTORS.

When we search for homes for sale in Ann Arbor and the surrounding area’s, we search the MLS by school area.

Below you will see the new listings for January 2011, the solds in January 2011 and the comparison in 2010.This is the current data for all of Washtenaw County.

Condos Market Date from the Ann Arbor Area Board of Realtors

Ann Arbor Starts The Year With a Price Upswing (annarborundressed.com)

When the Missy Caulk TEAM works with buys moving into Michigan we are asked frequently what the SEV and TV mean when they look at the MLS listing ticket.

SEV is the State Equalized Value, this is reset when you transfer the deed to a new home owner. It is typically at 1/2 the Sales Price of the Home.

TV (Taxable Value) is the what the amount of taxes you pay is based on. In 1994 the State of Michigan changed the way property taxes are calculated based on what is commonly known as Proposal A.  According to Proposal A, you can not be accessed each year more than the rate of inflation or a top of 5%.

If you have been a long time home owner in Michigan, the SEV and the TV can look quite different. At the peak of our market in Ann Arbor the SEV would be much higher than the TV. As a home would sell, the municipalities would reset the SEV to the sale price divided by 2. (usually) Some municipalities would take a look at the overall value of the neighborhood and access you at that amount.

The amount you need to be concerned about is the TV as that is what you are paying your taxes on.

The last few year, I noticed across the Washtenaw County area, due to the falling prices that in many areas  the SEV and the TV were equal.

Up until the last few years, in the Ann Arbor, Washtenaw County area we paid our taxes twice a year. We got a summer tax bill and a winter tax bill. That has slowly been changing as the winter taxes have been slowly been being added to the summer tax bill. That is when the schools take their operating budgets.

The State of Michigan provides a Michigan Property Tax Estimator and it is easy to use. Although it is not 100% accurate it is pretty darn close. You can use it to look at Homestead and Non-Homestead taxes for a home you are buying in Ann Arbor.

Non-Homestead taxes are vacation homes, second homes, investment homes.

Homestead is your primary residence.

This chart is from 2005 but the process is still the same. (Courtesy State of Michigan)

I know they are confusing when you are looking for a home to buy in Ann Arbor, but anyone on our TEAM explain it.

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