Realtors say buyers are seeking good deals on great properties

By Christa Buchanan
C & G Staff Writer

Some much touted assertions regarding the poor local housing market — such as home sales are stagnant or mortgage loans are impossible to obtain — do not necessarily reflect the whole picture of real estate today.

Local Realtors say they are beginning to see an upturn in home sales; and since the Fannie Mae and Freddie Mac government bailout in September, buyers with good credit aren’t having problems getting a mortgage.

“One thing we’re anticipating is that we’re close to or at the bottom of the market,” said Realtor David Reese of Real Estate One in Troy, who has seen an increase in closings in recent months — many of which are short sales or foreclosures, which is a trend seen by Realtors across metro Detroit.

“I’ve had nine sales in the last five weeks: four foreclosures and one HUD home. The year prior, I didn’t do one, “ said Robert Dundon, associate broker at Weir Manuel Realtors in Birmingham. “I’ve seen a horrendous change in the market, but the good news is they’re selling — they’re selling every single day.”

In fact, said Kelly Sweeney, president and CEO of Weir Manuel, his office has seen about 1,050 closings in the last nine months.

“The real problem is the inventory — there’s still a lot of houses on the market; however, in the last two quarters, we have seen a flattening of inventory. The trend is starting to stabilize,” said Sweeney.

Sellers who really must sell, said Sweeney, should seek professional help and consider other options outside of traditional selling, including leasing or a short sale — especially if they owe more than their home is worth or if the home simply isn’t selling.

“Right now, rentals are going faster than sales are,” said Realtor Bill Finn of Century 21 Town & Country in Grosse Pointe.

And while it is a buyers’ market, local Realtors say contrary to popular belief, more and more buyers are facing competition for the cream of the housing crop.

“We’ve had a lot of brand-new homebuyers in the last couple months, and although it’s a buyers’ market, there are other buyers out there, so you (buyers) have competition, too,” said Rich Sparks, a Realtor with Keller Williams Realty in Sterling Heights. “If the home is clean and well-updated, you’ll have a lot of competition.”

However, that doesn’t mean that sellers with great homes are going to have buyers flocking to their doors, as there’s still an abundance of housing stock on the market that’s priced to sell.

Outside of foreclosures and short sales, said Finn, the homes that are selling are in top shape and priced at or slightly below value.

“Pricing the home right is more important than anything else right now. Price your home slightly below value — get it as low as you can go, because there’s a lot of competition with so many homes on the market,” said Finn.

“In a down market, you can’t try a price and then go down. If you don’t price it right, right away, you’ll be chasing the market,” said Reese, adding that it’s also essential to make sure the home is clean and orderly.

“In this market, especially, you have to put your best foot forward. … Clutter is a big thing — it should be clutter-free and clean. Make sure the home has a fresh flow, inside and out. Clean the carpets and windows; apply fresh, clean paint; keep it nicely landscaped,” said Finn, stressing that now is not the time to make expensive updates.

That’s why it’s a good idea to get a professional to help to determine what projects to focus on, Realtors say. 

“We (Realtors) give advice to people on where to spend money on updates. We try to have them spend money on things where they’ll get that money back, so that if you spend $1 you get $1 back — it just makes sense,” Sweeney said.

Overall, the experts agree, that while the current market isn’t favorable for everyone, there are some great opportunities out there for first-time homebuyers, as well as those looking to upgrade to a bigger, better home.

“Right now, buyers have the opportunity to purchase a home that may have been out of their range a few years ago. If you’re looking to buy a larger house, now’s the time to do it — five years from now you’ll be delighted,” said Dundon.

For more information, contact Dundon or Sweeney at (248)-644-6300, Finn at (313) 886-5040, Reese at (248) 813-4900 or Sparks at (586) 979-4200.

You can reach Staff Writer Christa Buchanan at cbuchanan@candgnews.com or at (586) 498-1061.

Tips for selling in a down market

Selling a house in the current economy may pose some challenges, but it isn’t impossible. With so many homes on the market, the competition is fierce, so it’s essential homeowners do everything they can to make their home stand out. To expedite the selling process, local Realtors say that homeowners must go above and beyond the advice from the past with better preparation and marketing, extra elbow grease and more research to determine appropriate pricing.

To that end, local Realtors Robert Dundon of Weir Manuel Realtors, Bill Finn of Century 21 Town & Country, David Reese of Real Estate One, Rich Sparks of Keller Williams Realty and Weir Manuel President and CEO Kelly Sweeney offer advice on what to do when selling a home in a down market:

• Do clean and de-clutter. Pack away all personal mementos, extra decorative items, pillows, blankets and rugs, etc. Make sure everything — windows, doors, floors, appliances and fixtures; the front door and entry area; the garage, basement, attic and closets — is thoroughly clean, and dust- and cobweb-free. 

• Do consider hiring professionals to clean the home, steam-clean the carpets or polish wood floors, as that lends buyers to believe the home is better maintained.

• Do consider hiring a stager to redecorate your home, as oftentimes, it takes another perspective to showcase the best — and hide the worst — features of a home. If your furniture is old, the stager may suggest renting furniture so that your home shows in the best possible light.

• Do make improvements, but be careful to not go overboard. Replace appliances if they are old and outdated; apply fresh paint in a neutral color; consider replacing window treatments; replace any worn carpet or vinyl flooring; and replace or repair a leaky roof. You may want to consider giving the buyer a cash incentive for such remodeling projects as kitchens and baths, in lieu of doing the updates yourself.

• Do focus on curb appeal and invest in minor outdoor improvements. Repair any broken fencing; make sure the lawn is mowed and edged, consider adding flowers or foliage and fresh mulch; fix cracks in the driveway or walkway; paint the home’s exterior if necessary; paint the front door and make sure the entry area is clean and welcoming.

• Do find a Realtor who will market your home everywhere — the Web, print ads, yard signs, etc. — and host multiple open houses.

• Do come to terms with the fact that the home’s value may be far less that what you are expecting and price it accordingly. Research current home sales in your area and price your home 2 percent to 3 percent below current market value — this will help expedite the selling process and ensure the home’s value doesn’t further decline before it sells, especially with the unstable home values of the current market.

• Do find a Realtor who is engaged in the business, whom you can trust and who will give you all the options available, including selling, leasing and short sales.