According to an April 15, 2013 Detroit
News report, the housing market is officially “back” in Metro Detroit,
which is good news for sellers, who are benefiting from market conditions
across the region. According
to the report, prices in Wayne County rose by 43 percent compared with March
2012, and the inventory of existing homes is down considerably.
In many Community Financial communities, there is no
question that the real estate landscape has turned the corner. For example, in Northville,
a hub for high-priced homes, the median sale price has actually risen to a
higher level than 2003, $410,000, according to a recent
article from Crain’s Detroit Business.
In other communities, the average number of days on the
market for properties dropped sharply and if trends continue, 2013 could be the
biggest drop in that department yet.
Nicolle Sherman, a senior mortgage specialist at Community
Financial, has seen the shift to a seller’s market first-hand.
“In our communities of Plymouth,
Northville and Novi, houses are selling very quickly and there’s a lot of
competition,” Sherman said. “Because of
limited supply buyers are finding themselves in a lot of multiple-bid
situations. Buyers are trying to gobble up the few houses that are out there.”
Sherman also has an important piece of advice for
prospective homebuyers - work with a realtor who knows the area. A professional
can help you structure your offer so it is attractive to sellers who are
evaluating multiple offers, she said.
“I always encourage buyers to work with an agent as opposed
to trying to do the negotiations themselves.
It makes sense because in most instances there’s very little cost to the
buyer to utilize their services,” said Sherman.
In a tight, high-demand housing market, homebuyers should also
be prepared to make their best offer for properties they really want right up
front, according to local realtor Deborah Ronayne.
“Most everything in Novi and
Northville has multiple offers and the highest and best structured offer typically
is called,” Ronayne said. “The only ways to win these battles is by offering
more than the list price and typically include a clause in the agreement to
cover the difference, up to a point, if the appraisal comes in low.”
The edge often goes to conventional buyers with flexibility
and extra cash to spend, which is part of the reason why Sherman recommends
getting pre-approved for a mortgage loan before hitting the market.
“With all these multiple bid situations, if you don’t have a
pre-approval letter with your offer you’re not even going to be considered. Things
are moving so quickly,” she said.
Sherman adds, “Really, you shouldn’t even look before you
have a pre-approval in hand…You need to be ready to make your highest and best
offers when you find something you really like.”
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