Novi Real Estate Market

Where does the real estate market stand?

I am asked by friends and neighbors daily. How is the real estate market? In Novi the foreclosures and short sales are down significantly. Fannie Mae (for full disclosure, Fannie Mae has hired me as an expert to sell foreclosures) has changed their selling strategy of foreclosed homes. The first thing they changed was their approach. Prior to the summer of 2011, Fannie Mae would typically sell a foreclosed home for up to 10 percent below market value to create value for their home and move the depreciating asset. Fannie Mae hired part-time and non-proven agents to represent them.  he result was a “turn and burn” mentally and that contributed to the market depreciating at a faster rate. It also created significant fraud and service issues. Fannie Mae has come to the realization that repairing their inventoried homes enables them to sell the home at or slightly above the market value. They have replaced underperforming agents with top agents to represent their homes. The result is a high level of service to the consumer and less fraud.

The number of short sale homes on the market in Novi and throughout the area is decreasing. Banks have now streamlined the short sale process from 90 days to 45-60 days for approval of an offer. Realtors aren't as nervous about showing and making offers on these homes. 

The housing sales increase is mainly due to the stabilization of the job market and interest rates at record lows. The most surprising issue of all is the lack of inventory of nice, resale homes and condos. The mild winter has more buyers buying than in years past. Low inventory and an increase of buyers makes the prices go up. When a well priced, nicely decorated and clean home hits the market, there are buyers looking to make market value offers on these homes. Appraisers are finally on board and the banks have authorized them to appraise homes at a market increasing rate. In 2009 and early 2010, homes would sell for higher number and the appraisals would come in at or below the market. It appears that the days of homes listed well below market may be behind us. There is now a pent up demand of buyers who are anxious to get back into the market. People who were forced to rent because of the housing crash will be back in the market to buy in the next one to two years. I am excited about the future of the local real estate market.

A Great Time to Sell and Move Up!

Island Lake of Novi and new construction builder’s sales have been on fire. The market is turning for local builders. Buyers are starting to feel secure in their jobs and are ready to make that move…to Novi!  We all know that the Novi schools are a huge attraction for families.

If you are planning to sell your home, there some very valuable staging and update ideas to consider that are inexpensive and can generate a higher offer in less marketing time. First, and most important, make sure your approach to your home is clean and inviting. Shovel your walkway, edge the lawn and clean up the landscaping around the front of the home. Within three seconds after entering your home, the majority of buyers have made a buying decision. Sight lines from the foyer to the kitchen must look as close to a model home as possible. Secondly, make sure the carpet and paint are as close to neutral as possible. The newer, the better. Blue carpet does not sell well. It’s a fact (don't shoot the messenger). I love using the phrase, "Pottery Barn-style home". That phrase creates an image for the buyer that says we have a cute, well-decorated home. Lastly, the best time to sell your home is when you are ready. The market is the market.  No one can say for certain where the economy will be at the end of the year. The one constant for 2012 will be interest rates will be around 4 percent. If you would like to contact me please send your email to pmruk@aol.com or call me at RE/MAX Classic at 248-348-3000 ext 230.