Real Estate Market: Priced to Buy

According to RealtyTrac, a total of 1.65 million U.S. properties received foreclosure filings during the first half of 2010. As of March, U.S. banks had an inventory of approximately 1.1 million foreclosed homes, which was up 20 percent from a year ago. Somehow U.S. banks have to get rid of this giant mountain of homes. Needless to say, this is going to have a significant depressing effect on housing prices.

The truth is that this is not a short-term downturn in the housing market. During the past two decades, an insane amount of debt fueled an artificial housing bubble that drove home prices to ridiculous levels. Now the U.S. housing market is trying to correct itself, and no matter how many trillions of dollars the U.S. government throws at the problem the fundamentals of the marketplace are still going to have their way eventually. According to Business Insider.com Michigan has 38.5% of the mortgages are underwater.



Now is the right time to bargain for a better price. The housing market has options across all categories: affordable, mid-income and luxury homes. The spurt of launches in the real estate market is not news anymore. With new names getting added to the list every month, there's already a supply glut. And, the pertinent question now is whether it makes sense to buy a house at this point. The basic law of demand and supply tells us that when supply goes up, the prices should fall. According to Trading Market.com when the market started recovering towards the end of 2009, developers gradually moved from affordable housing to mid-income housing, according to data available with PropEquity Analytics Pvt. Ltd, a Gurgaon-based property consultancy firm. In fact, in the last six months, the shift has become more pronounced with quite a few launches in the premium and luxury segments.

Real Estate Contract Conditions You Should Have

When you formally make an offer on a home you want to buy, you'll fill out a lot of paperwork specifying the terms of your offer. Aside from the obvious things like the address and purchase price of the property on which you're making an offer, here are some items you should be sure to include in your real estate purchase contract. Even though these forms are common and standardized and a good real estate agent would not let you leave anything important out of your contract, it is still a good idea to educate yourself about the key components of a real estate purchase agreement.

Finance Terms
If you are like most people and you won't be able to buy the home without obtaining a mortgage, your purchase offer should state that your offer is contingent upon obtaining financing at a specified interest rate.

Seller Assist
If you want the seller to pay part or all of your closing costs, you must ask for it in your offer. The offer should state the amount of closing costs you are requesting as a dollar amount (e.g., $6,000) or as a percentage of the home's purchase price (e.g., 3%).

Who Pays Specific Closing Costs
The agreement should specify whether the buyer or seller will pay for each of the common fees associated with the home purchase, such as escrow fees, title search fees, title insurance, notary fees, recording fees, transfer tax and so on. Your real estate agent can advise you as to whether it is the buyer or seller who customarily pays each of these fees in your area.

Home Inspection
Unless you are buying a tear-down, you should include a home inspection contingency in your offer. This clause allows you to walk away from the deal if a home inspection reveals significant and/or expensive-to-repair flaws in the structure's condition. For example, if the home inspection reveals that the home needs a new roof at a cost of $15,000, the home inspection contingency would give you the option to walk away from the deal.

Fixtures and Appliances
If you want the refrigerator, dishwasher, stove, oven, washing machine or any other fixtures and appliances, do not rely on a verbal agreement with the seller and do not assume anything. Specify in the contract any fixtures and appliances that are to be included in the purchase.

Closing Date
How much time do you need to complete the purchase transaction? Common time frames are 30 days, 45 days and 60 days. Issues that can affect this time frame might include the seller's need to find a new home, the remaining term on your lease if you are currently renting, the amount of time you have to relocate if you are moving from a job, and so on. Occasionally, the buyer or seller might want a closing as short as two weeks, but it's difficult to remove all the contingencies and obtain all the necessary paperwork and funding in such a short time period.

Sale of Existing Home
If you are an existing homeowner and you will need the funds from the sale of that home to buy the home you are making an offer on, you should make your purchase offer contingent upon the sale of your current home. You should also provide a reasonable time frame for you to sell your home, such as 30 or 60 days. The seller of the property you're interested in is not going to want to take his property off the market indefinitely while you search for a buyer.

Acrticle found on SF Gate

For more information on purchasing a home contact the Andrea Crossman Group.

The Housing Market Stabilizes

Recovery in both real estate and employment has taken longer than we ever anticipated, and even though there are signs of stabilization in both areas, we are managing to a lower set of expectations for the foreseeable future. Underwater borrowers, along with continued high unemployment, remain the biggest threats to the housing recovery. At the end of last year, among all U.S. homes with a mortgage 24 percent were underwater. Those properties are mostly in California, Arizona, Florida, Michigan and Nevada.

It is predicted that home prices will decline into next year, Fannie Mae said, reversing earlier projections that the housing market would stabilize this year. After the expiration of the home buyer tax credits, transactions began falling immediately and were down to around 30,000 at the end of July. Although, foreclosures, though down from their 2009 highs, still average well over 300,000 homes per month. While it takes a record 461 days to complete a foreclosure, on average. Fannie Mae said that it expects its inventory of repossessed homes "to continue to increase significantly throughout 2010."

The market got a major lift from a federal tax credit for first-time home buyers, a program that spurred sales but is no longer available to new buyers, that boost did not ripple after the tax credit ended. The first-time home-buyer tax credit, which expired April 30, helped 2.5 million people buy a home, while the Home Affordable Modification Program, which helps borrowers modify mortgages rather than face foreclosure, is on pace to help 3 million to 4 million homeowners by 2012.

The rumors are continuing to grow louder that the Obama administration is planning to announce a massive stimulus via the housing market later this month. Earlier this week, the word was that the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac might subsidize mortgage refinancing at below-market interest rates. But today, a possibility is being talked about where the GSEs instead (or maybe also) forgive the principal on the underwater mortgages they own or guarantee.

Home prices, as best we can judge, have really flattened out in the last year. And while it is true that most economists expect a small dip from here largely as a consequence of the ending of the home buyer tax credit, the data does not show that at this particular stage.

Here's a look at the number of foreclosure filings since the Home Affordable Modification Program began its first trial modifications in March 2009. Permanent modification of loans began in July 2009.




For more information on purchasing a home please contact the Andrea Crossman Group.

President Obama Visits Holland, Michigan

President Barack Obama on Thursday opened the nation's ninth advanced battery plant funded with economic stimulus money, leveraging taxpayer dollars to build a new national industry.

Compact Power Inc., Holland's second advanced battery plant half-funded by $151 million from the stimulus, will manufacture batteries for the Chevrolet Volt, a plug-in hybrid electric car, with a projected 52,000 to be produced each year. It will also supply the power for a new electric Ford Focus. It is only a part of a $2.4 billion federal commitment to the fledgling industry, financed under the economic stimulus.

White House economists say the U.S. produced less than 2% of the world's advanced batteries in 2009. By 2012, plants in the U.S. will have the capacity to produce 20% of the world's production. By 2015, that share will be 40%, the White House says.

But capacity is one thing. Demand for electric vehicles is another, and the market has been fickle in the past. Menahem Anderman, chief executive of Total Battery Consulting in California, estimates that the capacity to produce advanced automotive batteries just from the stimulus-funded U.S. plants will be three times greater than global demand by 2014.

To view the full article visitWall Street Journal

Noting that a shrinking US economy is now growing due to the steps being taken by his Administration, President Barack Obama asserted that his country would emerge stronger than before from this turmoil.

Addressing a meeting in Holland, Michigan, on clean energy, Obama asserted that because of the series of steps being taken by his Administration, the US would emerge from this period of turmoil; and come out stronger than it was before. Referring to the economic recession, he said it was a decade in which it seemed like the values that built this country were turned upside-down.

"It got even worse when the financial crisis sent our economy into a freefall and cost eight million Americans their jobs. Michigan was hit harder than anywhere else. An on top of this recession, you were also rocked by the near collapse of the domestic auto industry," he said.

"That's why, when my administration began, we cut taxes for small business owners and for 95 per cent of working families here in Michigan and across the country. We extended unemployment insurance to help folks get through these storms," he said.

"And we are seeing results. There are 4.5 million unemployed workers already hired whose employers are eligible for a payroll tax exemption, a tax break that I signed into law earlier this year," he said.

To view the full article visit Business Standard

Davey Ramsey: Finding a For-Real Realtor

Question: Dan and his wife want to sell their home. What are the criteria by which they should choose a realtor? Dave thinks this is a great question.

Dave Ramsey's advice: I'm always looking for high-octane, high-protein realtors. About 80% of the sales are made by 20% of the people. You don't want one of the other 80% to do the work here; you want a stud. This is your largest asset, and we're in tough times, so only the studs can sell. They won't fool around and list your property for too much, and they won't under price it and make you mad. They get stuff done.

When you interview them, ask how many houses they sold last year. If they sold four, get them out of your house. If they sold 44 houses, that's a different story.

Ask them what you need to do to get this house sold. If they can't give you good pointers and tell you what you need to fix in a diplomatic way, you don't need them.

Find out how much property they've moved in your area and within a 5-mile radius. If all the houses they've sold are on the other side of town, that worries me. Don't hire your aunt Sally or some guy you sit next to in church. Interview them and rake them over the coals. If they don't show up on time for the appointment with you, they will do the same when showing the house. Get someone who will return your phone calls.

For more advice for Dave Ramsey click the link.

For more information on selling your home form a for real realtor contact the Andrea Crossman Group.

Michigan Department of Education Ranks Area Schools

The list ranked public schools according to their scores on the MEAP and MME standardized tests, based on the number of students who scored well enough to be considered “proficient” in English language arts and math and on how much schools were able to improve the scores between the 2007-2008 and 2008-2009 academic years. This is the first year the schools have been ranked comparatively. Black River Public School, Eagle Crest Charter Academy, Hamilton High School and Hamilton Middle School also posted scores at or higher than the 90th percentile. Holland High School was ranked in the 42nd percentile, making it one of the lowest-ranked high schools in the greater Holland area.

RANKINGS FOR AREA HIGH SCHOOLS:

School Percentile
1. Saugatuck High School 99
2. Black River Public School 97
3. Hamilton High School 90
4. Zeeland West High School 81
5. Zeeland East High School 74
6. West Ottawa High School 63
7. Holland High School 42
8. Fennville High School 24

For the extended list visit the Holland Sentinel.com

For more information on purchasing a home along Michigan's waterfront contact the Andrea Crossman Group.

Holland Michigan's Downtown Is Changing

New in town, New Downtown Holland Businesses

Fustini's Olive Oil and Vinegars tasting room
At Fustini's they offer you a broad selection of Aged Balsamic Vinegars and the freshest Extra Virgin Olive Oils you can find in Michigan. Their products are imported from artisans and small batch producers worldwide to shops in downtown Traverse City, Petoskey, Holland & Ann Arbor where you can taste each one, and where they bottle and seal them for you right before your eyes. Fustini's offers 21 different Oils and 20-some Balsamic Vinegars in the store that you can mix to make a perfect marinade.

Newb's a jewelry boutique offers a large variety of jewelry, accessories and some woman's clothing. The name is an acronym for necklaces, earrings, watches, and bracelets. Newb's has name brand jewelry, items are priced at amazing deals, and they take great pride in finding the best quality items at the best possible prices.
Newb's is located at 182 South River Ave.

Thistle Gallery relocated from a different part of town to Eighth Street. Thistle Gallery features a unique collection of fine handmade creations from professional artists in varied mediums. This gallery features work from more than 80 different artists in mediums including painting's, jewelry, pottery, glass, and more.

Holland Clock Company is a retail outlet for German Black Forest Cuckoo Clocks, German Novelty Clocks, Black Forest Miniature Clocks, Dutch-style Clocks, and other unique Clocks. Holland Clock Company opened for business located on College Avenue downtown in March.

Warner Vineyards invites you to explore, taste and experience their award-winning wines and champagnes. Enjoy complimentary wine tasting in the tasting rooms. Warner also produces a line of French hybrid wines and two flavorful non-alcoholic sparkling fruit juices, as well as dessert wines such as Cream Sherry and Port. Warner Vineyard tasting room is located at 208 College Avenue.


Out with the old in with the new location

Kilwin's is a confectionery shoppes that also offers our customers a unique online shopping experience. Kilwin's has moved to a newly renovated store on the corner of Eighth Street and College Street. With over 20 shops in Michigan Kilwin's continues to satisfy our sweet tooth with their confectionery delights including chocolates, fudge and ice cream.

Tip Toes is a unique baby boutique. Tip Toes offers a wide selection of baby shoes, strollers, wall decor, furniture, baby books, toys, and gear for babies to young children. Tip Toes has also moved to a newly renovated storefront on Eighth Street next to Kilwin's.

Second story artist

Holland's downtown is know for its quaint shops and welcoming atmosphere but now more culture is being added to the second story. Most shoppes second stories are used as apartments, business offices, or condos but that is slowly changing. Artists have opened studio spaces and retail galleries on the upper floor adding more to the unique and vibrant downtown atmosphere. The upper story of the Model Drug/Apothecary Shop is a studio and gallery for four local artists. Readers World across the street is also a location for a second story gallery.

Downtown Street Performers

Every Thursday evening from 6:30 pm to 8:30 pm June 10 to August 26 Downtown Holland comes alive with street performers. features 70 different performers in 29 different locations over three blocks of the downtown streets. During the Series, artists from all backgrounds perform free for the public, filling the streets of Downtown with musicians, aerial acrobats, jugglers, dancers, balloon twisters, theatrical troupes, magicians, caricature artists, and much, much more.

For more information on purchasing a home in Holland, Michigan contact the Andrea Crossman Group.