The Monopoly Report® 
Buyer Agency Agreement
Wednesday, March 14th, 2012 at 7:04am. 340 Views, 0 Comments.
I think one of the most misunderstood concepts in Michigan real estate today is that of the buyer agency relationship and what it means to have a Buyer Agency Agreement. I've heard an incredible number of people say that they prefer to just drive around or browse online while randomly calling real estate offices for information and they don't want to be "trapped" working with just one agent. I've heard an equally incredible number of gasps when they realize the truth about buyer agency and how it REALLY effects them as potential home buyers.
In the early 90s there was a significant shift in Michigan law regarding the legal relationships between real estate licensees and the clients they service. This change came in the form of a legally recognized…
Size Really Does Matter!
Monday, March 12th, 2012 at 10:21pm. 190 Views, 0 Comments.
Question: Can the size of my down payment make a difference in my negotiations?
Answer: Absolutely! In the past several months we have seen more and more competitive bidding for move-in ready Metro Detroit homes. When this is the case EVERY attribute of a Purchase Agreement has the potential to strengthen or weaken your offer in the eyes of the seller. Buyers who do not take this into account will find the seller then focuses on the elementary elements of their offer and this usually means a laser focus on price.
To maximize your potential for a favorable negotiation be sure to structure your offer in a way that forces the seller to think about more than just the price. While there are several strategies that can accomplish this, in most cases the…
Trap #1 | National Real Estate Sites
Thursday, March 1st, 2012 at 9:37pm. 230 Views, 0 Comments.
Myth: Websites like REALTOR.com, Trulia, Zillow and ListingBook are the best sources to find potential homes and gather information.
Truth: These companies are first and foremost marketing companies and their sites are set up to service real estate professionals NOT the home buyers and sellers that use them everyday! They make their money by attracting buyers to their sites with the promise of free access to millions of homes and then sell your information to real estate agents and brokers hoping to gain a client. The worst part is that the information they use to attract you is merely repackaged MLS information and is usually inaccurate, incomplete and out dated. It's not uncommon for a client to call us with a list of 10-15 homes they…
Trap #2 | Calling For Sale Signs
Thursday, March 1st, 2012 at 9:36pm. 74 Views, 0 Comments.
Myth: The company that has the home listed is the best source of information on the property and you can probably get a better deal if you deal with them directly.
Truth: Under Michigan law the broker that has the home listed and all of thier agents legally work for the seller. They are obligated to disclose to you, by law, that any personal information you provide them is required to be shared with their client, the seller. They legally owe all fiduciary responsibility to the seller which means they are also obligated to sell the home for as high a price as possible under current market conditions. You are therfore at an extreme disadvantage when you call their office for three reasons:
- Regardless of whether or not the agent…
Trap #3 | Foreclosure & Short Sale Inventory
Thursday, March 1st, 2012 at 9:33pm. 64 Views, 0 Comments.
Myth: Foreclosures, bank owned, government owned and short sale homes can still be purchased for pennies on the dollar.
Truth: The massive drop in home values in Michigan over the past 6 years has basically leveled the field between the distressed properties and the privately owned homes listed for sale. What this means is that the days of being able to find a foreclosure that was move-in ready and purchase it for 60% of its actual value are long gone. The banks have been holding foreclosure inventory back and in essence controlling the prices by slowing the release of new inventory into the market place and pricing their homes at market value less renovations. This has brought an equilibrium of sorts that was absent just a couple of…
MLS Multiple Listing Service
Friday, March 25th, 2011 at 10:32am. 804 Views, 0 Comments.
M·L·S | acronym | Multiple Listing Service
A multiple listing service or "multi-list" is a private forum in which participating member brokers and REALTORS® share information about real estate they have available for sale or lease. In years past the MLS was a literally a book that held paper listing tickets detailing area listings of "Cooperating Brokers". Today the MLS has evolved into a network of sophisticated computer databases offering both private (members only) and "public" access.
By listing properties in this forum agents are able to market them directly to a very large and focused audience: the thousands of area agents who represent actively shopping buyers.
As a listing agent the primary objective is, and always should be,…
Functional Obsolescence
Tuesday, March 15th, 2011 at 8:57am. 502 Views, 0 Comments.
ob·so·les·cence | noun | a loss in the utility or value of property that results over time from intrinsic limitations (as outmoded facilities) or external circumstances.
func·tion·al ob·so·les·cence
:: obsolescence deriving from lack of adequate or appropriate equipment, space, or design.
Real Estate Examples:
- Homes with 3 bedrooms and only one bath were popular in the 50s and 60s, but are now considered functionally obsolete because most buyers want a minimum of two bathrooms.
- Homes with detached, 1 or 1.5 car garages are functionally obsolete; homeowners don’t want to walk that far (especially in the snow and rain) and most have a second vehicle or “Stuff” for which they need storage.
- Think about how things have…