Market Update For Our Sellers

Karen & Todd send our sellers an update on market conditions every two weeks. Here is an excerpt of that e-mail.

Here we are, the day after the tornadoes and storms have swept through our area. I am hoping you are all safe and your homes have come through without damage. After hearing about the Tigers' game being delayed and then finishing at 3:30 this morning, I truly believe that Michiganders have a strong spirit!

Having heard all the recent news about the mortgage crisis, I would like to make a couple comments.

* The news of the Sub-Prime meltdown has caused lenders to "raise the bar" with 100% financing and other loans that are greater than 80% loan to value. Buyers need better credit scores than they did in the past.
* We know of banks that still offer 100% financing, but buyers may need to get requalified before moving forward.
* Because of the above, we have noticed at Buckley Jolley, a decrease in the amount of showings on our listings over the past two weeks. We expect it to pick up again after Labor Day Weekend.
* At Buckley Jolley, we are experiencing an increase in the number of sellers owing more than what their house can bring in today's market. This is now becoming more and more the norm.
* We have experience working with these situations and are now working with an outside consultant to negotiate with banks for short sales once we receive an offer on the home. Sellers must be able to prove they have no other assets and extreme financial distress due to loss of income or other financial obstacles before a bank will approve a short sale. In other words, this is a last resort before foreclosure.

The hope in this market lies in the fact that you can sell your home. It is possible. One of our Buyer Specialists has had 5 signed purchase agreements for her buyers this month alone! Our office had 4 closings in the last 2 days. As I write this, two of our Buyer Specialists are meeting with buyers to discuss purchasing a home. We keep our heads down, work hard and work with you to get the job done.