SANTA IS COMING TO TOWN!

Santa is coming to town at Max Broock Realtors (275 S Old Woodward Avenue, Birmingham, MI 48009) Dec. 15, 2-4pm. Come have your free photo taken with Santa! Also, you can send your holiday wish list to Santa and he will write back this year. 
Simply have an adult address your envelope to: 

Santa - Care of Linda Hanna & Associates
275 S. Old Woodward Avenue
Birmingham, MI 48009 

Santa will be collecting for Toys for Tots so if you wish you can bring a new unwrapped toy to help Santa and his Elves with the huge holiday demand!

When should I be placing my home on the market? NOW!

With several reports coinciding with CNN's financial report, it is excellent to hear that home sales have increased. In fact, home sales have been above last year's averages concurrently for 9 months. Along with an increase in sales, there have been continual increases in potential purchasers due to the tax credit being offered of up to $8,000 for 1-st time buyers and up to $6,500 for repeat buyers. With this coming to an end (homes must be under contract by 4/30 and closed by 7/1 to be eligible) our market has been rushing to meet the deadline.

After the April 30th deadline passes by, our market is also going to be seeing a large surge of foreclosure properties. With an increase in inventory of distressed properties, the market values will be declining yet again. In order to get the most for your home, in the shortest amount of time possible, now is the time.

Saab Invests in Royal Oak

With Jennifer Granholm and Royal Oak Mayor Jim Ellison working together, the City of Royal Oak will benefit from a new Saab headquarters location. Saab has decided to invest $2.4 Million in establishing their new headquarters in Royal Oak. With a significant tax break from the State of Michigan ($1.2 Million over 5 years) and a $29,000 tax break from the City of Royal Oak, Saab will move here with ease. Along with the new headquarters, Saab has announced that they will be increasing their staff by hiring 60 new employees.

What does this mean for home sales? With the relocation of any business to Oakland County, residents can expect to see a larger supply of buyers. This determines when a good time to put your home on the market would be...NOW! With more buyers moving closer to their new work location, there will be more opportunities for your home to sell for a higher value in a shorter amount of time.

Hesitation Will Hurt

With many aspects of the industry changing constantly, there are some facts that the public must be aware of in order to avoid losses in real estate transactions. For example, as of April 5th, FHA will be increasing their upfront mortgage insurance premium by a half of percent from 1.75% to 2.25%. This is to help cushion their risks which they have taken in a down market. Also, FHA has many other changes in the works that will change the market. First, they will be increasing the minimum required down payment for individuals with a credit score of less than 580, to 10% from 3.5%. Next, they will be reducing the maximum amount of seller's concessions that can be received by a buyer from 6% to 3%.

These changes will strongly hinder home sales in the area. The changes will decrease the amount of buyers that are able to buy because of their seller's concessions being slashed. Seller's concessions help 1-st time and other buyers to pay for mortgage origination fees, title insurance fees, etc. This reduction will possibly force these buyers to seek assistance before being capable to buy.

Lastly, the foreclosures will be out to get us again! If you are looking to sell any property in the near future, NOW IS THE TIME! With more than 4.5 million mortgages in foreclosure or close to, the values of all homes in the area are still going to see a large hit after these properties have been placed on the market. Keep in mind, the banks have been trying to liquidate their inventory faster rather than for higher values. This means that the sellers will have a rough time maintaining their value when neighboring values are plummeting.

Tax Credit Deadline Approaching

Imagine this... an extra $6,500 or $8,000 to add equity to your new dream home! Well this is possible! Thanks to the Worker, Homeownership, and Business Assistance Act of 2009 there are tax credits of up to $8000 for qualified 1-st time buyers and up to $6,500 for qualified existing homeowners. In order to receive the credit, buyer's must have a written binding contract by April 30th and the home must be successfully closed by June 30th, 2010. Some income and purchase values are excluded from the tax credit including, but not limited to, income caps as well as the purchase price must be valued less than $800,000. The credit is received by the buyer in their normal annual tax returns. Now these homeowners can add this back into the value of their newly purchased home! Don't wait too long, aim for the tax credit deadline, and you will be ahead of the future neighborhood values! Contact us for more information!