At a recent Fall Kick off, the introduction and conclusion to the Remerica Hometown One Event "Playbook" read something like this.  I was asked to share it with you.

9/15/10 Remerica Hometown One  Plymouth, MI

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Amnesia will help and other useful suggestions. 

A positive attitude sometimes requires drastic measures to maintain, or to "jump start".  Constantly, our ears and eyes are filled with sounds and visions of negativity.  The news and the conversations pivot upon negativity including; Jobs, home prices, economic data and despair.  How do we even function?  How can we even muster a positive thought?   The answer to this is simple.  There is ALWAYS more positive than negative happening at ALL times. 

Don't let the "Momentum of Negativity" rule your life!  How?  You ask.   You start with Immediate Amnesia!  You must first have total amnesia to what HAS happened in the housing market..  What good is your memory to you?  The data is already recorded.  The lessons are already learned.  The Momentum of Negativity gets so bad, that any good news that is currently happening is brushed off as lies, bad science, bad statistics or hearsay.   That belief is unfortunate, as the good news is just as real as all the bad news that came before it, but believing the good news requires you to adapt and change your behavior to the new result!  It is natural to fight change, even if it is obviously for the better.

In recent history, there has never been a better time to embrace positive news!  Start by embracing a life of giving, building higher quality relationships throughout your business and personal life, practicing a "get by giving" life, or as it is called in a recent book on the subject, the ROR or "Return On Relationships".  Not just a "will you give me business if I give you business?" approach.

Building stronger connections with people, communication, taking the extra time to ask meaningful questions, that is at the heart of building better client relationships, better friendships, better family.  We must constantly improve our relationships.  In other words, we must constantly improve our Leadership. 

Leadership is the biggest difference in real estate brokerage, in most companies and organizations.  It is what makes one company a thriving firm while others .... Well, not so much.  Your Pledge:  Become even better leaders!  Care even more!  Deliver even more!  Sounds tough, but it all can become much easier once you realize that at the heart of it all is your ability to create a bond, to move someone, and that talent is within you right now!  There is no one who deserves it more than you!

-John

Some Positive News to Consider:  In and around Metro-Detroit and Michigan

*August 09 vs. August 2010.   Median Sales Price ALL MLS Up 10.9%   Wayne Co  up 30.2%  !!!  This follows a July increase of 14.1% compared to 2009 and a 41.5% Increase from June 09 vs June 2010!

*Sales:  Down ALL MLS 13.9%, Wayne Co down 20.7% **  Good news as August 2009 was a record sales month since 2005. 

*On Market Inventory:  August 2009:  47,753   August 2010:  38,.797

*Canton YTD 2009 vs 2010  sold units :  Up 10%

*Northville YTD 2009 vs 2010 Sold units:  Up 18%

*Livonia YTD 2009 vs 2010 Sold units:  Up 16%

 Average sale volume through the first 6 months of 2010 was up over 25.4% from 2009!

 More than 72,000 Michigan jobs have been announced since the start of 2010!   It's at least a start!

Believe it! 

You see, the news, and eventually the attitude of those around you is changing.  Are you????

Life After the Tax Credit:  Some thoughts from a Michigan Realtor® Round table

Remerica Hometown One, a Michigan based real estate company recently held a Realtor® round table to discuss life after the home buyer tax credit.  Here is a brief synopsis of the discussion:

Well, here we are almost 30 days after the end of the Home buyer Tax Credit, with the big questions being, how will the next 30 days go?  How will the summer real estate market be in Michigan's Metro Detroit and Ann Arbor Area?  The Hometown One round table came up with a few thoughts...

• - There may be a "mini correction" over the next 45 days, due to home buyers expediting their purchases to receive the tax credit, leaving a void of buyers for a brief time. This will only be a short vacuum followed by a slow, constant recovery: Kind of like watching a rusty clock move!
• - We may see an increase in inventory, but as we have discovered, many areas are seeing a lack of saleable listings, causing multiple offers, and a pent up demand from buyers. Whether this new inventory is from foreclosures or human controlled transactions, this inventory increase may pose very little negative impact and may be devoured by the current buyers in the market.
• - Appraisals are still a concern. There are adequate comparatives in most price ranges to prove a slight increase in value around Western Wayne and Oakland County, Washtenaw County, etc., yet the appraisal problem rears its head on an estimated 40% of current transactions. Why is there so much pressure to the down side when it's obvious there is some upside pressure? It's not that complicated, appraisers need to determine "market value" not "bank value"!
• - Jobs will still play a role in the real estate recovery in Michigan. The news is getting better on this front. It's about time! It was suggested that Michigan will be the recovery hero to the Country! Boy I hope that comes true!
• - Interest rates are the lowest in 50 years. Getting a home on a 4.5% fixed rate for 30 years compared to 6.5% of a year ago, gives you 3-5 home buyer tax "credits". These lower rates may do more to help the market stabilize than the tax credits. The funny thing is, rates were supposed to go up, but the European flock to safe harbor bonds has really been great for (at least) real estate!
• - Elections: As we head toward November, wow, who knows, but the Round table did think that the elections will at least have an effect on the psyche of today's home buyer and seller.

Well that's all from the most recent Remerica Hometown One Realtor Round table.  I know this is a basic "in the trenches" outlook, but that is where our clients and we live, in the real world. Our community is probably just like your community. "Street level" where we are going to solve our problems and challenges!  We would love to hear your thoughts.

Top Five Challenges a Realtor® Faces this Spring...

A list of challenges from Realtor Roundtable at Remerica Hometown One

-Saleable Listings:  As the number of active listings is at about ½ the total it was in spring of 2008, the buying pressure has increased, causing large volume of saleable listings owned by humans and banks to be sold.  We need new listings to meet buyer demand!  Yes, can you believe what we are saying?!

-Quality Listing Leads:  As all top Realtors know, you have to be constantly communicating and empowering your sphere of influence and your past client base.  When you are referred to a family member or friend as a trusted advisor, we do the right thing.  We, as Realtors counsel, advise and tell the truth.  This means telling many would be Sellers to stay put!  This decreases the conversion rate from lead to listing, but in the long run will make for a very loyal client base of potential listings and therefore, sales.  Continue to reach out, continue to be passionate and this challenge will take care of itself.

-Appraisers, Underwriter and Loan Officer Communication:  I write this note with 5 appraisal problems on my desk.  The level of talent, communication and professionalism in appraisal and loans is horrendous.   Never has there been experienced such transparent ineptness and weak spines on the part of the funding and valuation arm.  There are very few exceptions. (and I will here from all of them)  Constantly facts are ignored, good comparative homes are skipped over in appraisals, adjustments for improvements missing and values continue to come in comically low!  The market should be the appraiser's guide, not the banks heavy handed suggestions.  Recently 3 homes came on the market in Canton, MI within a city block of one another.  In 3 days there were 40 showings and 15 offers on these 3 homes.  Guess what, all three didn't appraise.  Declining market?  What declining market?  Give me a break!  Let the market start slowly growing again!

-Multiple Offers, Unrealistic Buyer Expectations:  This one makes you crazy.  A great home hits the market, priced perfectly and of course there are multiple offers.  You advise your Buyer Client that they should come in very strong with an "at or above asking price" offer.  The Buyer Client laughs at your crazy thinking, thinks you are from another planet and that you have never watched the negative news on channel 7, and proceeds to put in an offer of 10% under asking price.  Guess what!  They lose!  The home sells for $1000.00 over asking price. (see challenge #3)  Bottom Line; Real estate is not played out on National TV; it is played out on the LOCAL level with all sorts of variables.  Maybe the market is getting slightly healthier... you better ask a local Realtor, not Katie Couric. (She has National news to tackle)

-Trust / Fear:  With so many new faces on the real estate scene; bank owned property, low accountability and unscrupulous practices by some of these so-called professionals, the trust level is very low among agents, mortgage reps, appraisers.  The reality is that the "good" will prevail in the marketplace, over the long haul.  The reality is that most of the "fly-by-night" easy money, unprofessional people will be gone soon.  The reality is that there is always a great Realtor who can be trusted, who will be profitable and who will lead the way.  Fact:  The consumer is demanding competency and integrity at the highest level EVER out of their Realtor.  We can answer their call; we have been answering their call.  That is why the bad behavior is sticking out so much!  As Realtors we will conquer our challenges and build the best relationships ever, with our communities!  No doubt about it!

The first step in overcomming challenges is to identify them.  The second step is to put them in to perspective.  The third step is to work towards eliminating them.  The fourth step is to learn from them.  The fifth step is to look beyond them with a new vision.

Have a great Spring and Summer in all you do!

On St. Patrick's Day morning our office held a short sale "roundtable" and I wanted to share some of the conversation with you.  With over 400 Short Sales Closed, there are some real experts in this roundtable at Remerica Hometown One!

The Subject:  What Will Short Sales "Climate" Be in Southeastern Michigan in 2010?

-We all agreed that short sales will be around for at least another 3-4 years, representing about 35% of the market as a high and ranging downward to 10% in 48 months.

-The new incentives being put in place April 5, giving $1000 to First Mortgage, up to $3000 to the Second Mortgage and $1500 to the Seller upon short sale work out should help! (Look up Home Affordable Foreclosure Alternatives, HAFA)

-We all think that Realtors need to review the HAFA plan.  Here is an explanation; please review and check with a Realtor and your own mortgage company for details and updates.    https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html

-Inventory in Western Wayne, Oakland and Washtenaw Counties is diminishing and will continue to.  Buyer pressure on homes has increased measurably.  Bank owned, short sales and "normal' transaction listings that are in good condition are met with multiple offers, some for over asking price.

-Low appraisals despite the multiple offers and diminishing inventory are still an issue with short sales.  Mortgage companies need to stop pressuring for lower appraisals in Southeastern Michigan.  Let the natural "organic market" take shape.  The result will be a steady, healthy, slow ticking up of values.

-Slow bank response time to short sale offers, and slow processing time still hampers the market, causing buyer huge "buyer drop out" rates on these transactions. Replacing the buyer takes additional time and may damage a Seller's chance of a short sale as time might be running out towards foreclosure in many cases.

-Third Party short sale companies to assist in the short sale work out (charging the lender for the service) have been met with mixed reviews.  Realtors have been using these services to save themselves time and resources.  Unfortunately, if the success rate is lower with the Third Party Vendor, many Realtors are disappointed with the outcome.  You don't save time if the transaction never closes.  Realtors mentioned that it is the inconsistency of the lenders that cause the process to break down, and these inconsistencies are still in play with the third party vendors.  Most Realtors are choosing to become proficient at the short sale process themselves.  We will keep monitoring, and look forward to feedback from the Realtors at Remerica Hometown One as to the effectiveness of some of the Third Party vendors. 

-Improper uses of the status of "Contingent Continue to Show (CCS)" on the local multiple listing service was a heated conversation.  If a home is sold, signed by Seller, contingent upon Seller's mortgage company approval of the short sale, it would seem to be under a status of "pending" as the buyer and seller have come to terms.  Too many agents are using CCS as a way to keep a property active on Realtor.com and other sites, as well as to continue to collect leads.  Our suggestion is to have the MLS Service create a status called "Short Sale Contingent (SSC)" that would give an accurate description of the status, and allow SSC to be considered "active" so the home would remain in MLS as active, on Realtor.com and other sites, but with "SSC" so Realtors and the public have accurate information.

-The number of times a Realtor needs to call a short sale "loss mitigator" on behalf of the Seller is; once a week at the onset of the short sale, escalating to 3 times a week two weeks before short sale approval and closing.

-A cool tip to create short sale efficiency was to create label sheets with the Seller name, property address, and loan number and stick the label on every document sent to the short sale mortgage company.  This little tip has led to some time shortening for the Seller client.

In closing, the frustration by the Realtors as to the lack of efficiency and standardization by the mortgage companies continues.  Resourceful Realtors will always find a way to help their clients, and the short sale process is no exception.  There are many success stories with short sales.  All of them involve a burning desire to "not give up"!  This desire has to be there for the Seller as well as the Realtor.  Sellers who cooperate and complete all the bureaucratic steps have a tremendous advantage over Sellers who remain "inactive" in the process.  Realtors have found that they are capable of handling short sales when they take the time to learn the process, stick to the process and never give up!  Many have been able to keep real estate as their career by mastering the short sale process.  As home owners or Realtors, wherever you work, or live in Michigan, Remerica Hometown One would be glad to help you with short sale questions.  The better we all become, the better the real estate world becomes!

Save Money by Repairing Windows

Article From HouseLogic.com

By: Dave Toht
Published: March 09, 2010

Repairing worn windows, rather than replacing them, can save you thousands of dollars.

Perhaps your wood sashes are cracked, peeling, and prone to rattle in the wind. Or the insulated glass in your vinyl casement is "blown"-filled with foggy condensation. Maybe your aluminum slider gave up sliding years ago. You've got a window problem, and you know it's going to cost you.

Confronted with such ills, many homeowners leap to the conclusion that it's time to replace their windows. That's an expensive proposition: A double-hung 3x5-foot vinyl replacement runs about $525 installed. While it's an investment that'll pay off if you sell your house (a 77% return, according to Remodeling Magazine's Cost vs. Value Report (http://www.remodeling.hw.net/2009/costvsvalue/national.aspx) ), not every household can afford the initial outlay. Is there another way?

Fact is, none of the symptoms mentioned above necessitate new windows. By repairing windows with a few dollars and some sweat equity, most problems can be remedied. In addition, you're likely to improve the energy efficiency of the windows you fix. You can avoid the cost of window replacement by addressing some of these scenarios.

All-wood windows

When maintained, wood windows can last 100 years or more; if left unpainted, they quickly degrade. However, even after years of neglect, the damage is often superficial, looking worse than it is. There's no need to assume the window must be rebuilt. Areas of rotted wood can be renewed with penetrating liquid epoxy. Fill holes in sills and sashes with epoxy putty--it sands easily and is paintable.

Cost: About $20 for enough epoxy putty to mend a 3x5-foot window, $10 for paint and primer to protect your work. Allow three to six hours per window for the restoration.

Because sashes and stops wear with age, wood windows are prone to gaps where air can penetrate. Popular spring bronze weather stripping has a V-shape cross section. The flexible shape applies continual pressure against the window sash and permanently seals gaps while allowing sash movement. Other weather-stripping solutions include tubular vinyl and adhesive foam.

Cost: About $21 for enough spring bronze weather stripping to seal a 3x5-foot window. Allow an hour per window for installation.

Older double-hung wood windows have counter weights to assist raising the sashes. These can be repaired to working order, but the real problem is that the weights and pulleys require a sizeable cavity in the wall that's not insulated. This void contributes to heat loss. New replacement lifting mechanisms attach to the sash, allowing the cavity to be filled with expandable foam.

Cost: $38 for a replacement lifting mechanism, $4 for spray foam insulation. Allow four hours per window for installation.

Non-wood windows

Windows made of vinyl, fiberglass, and aluminum will last at least 20 years. Unfortunately, the gaskets that seal their sashes don't have the same life expectancy. Repair holes and small rips with by removing the sash and applying silicone sealant to the damage. To replace the gaskets, contact the window manufacturer or a specialty supplier for replacements.

Caulk any punctures or cracks in vinyl- or aluminum-clad windows to prevent water damage to the wood core. Repair loose aluminum sashes by tightening the screws at the corners; try coating the screw threads with a dry-locking compound made for especially for screws.

Cost: A few dollars for silicone or replacement gaskets and parts. Allow an hour or so per window.

Energy savings

Any repairs that improve the ability of your windows to seal against air leakage will yield energy savings. The worse shape your windows are in, the greater the potential savings on your fuel bill-a Vermont field study (http://www.homeenergy.org/archive/hem.dis.anl.gov/eehem/97/970908.html) suggests that sealing a single loose window can save $14 to $20 annually.

But don't expect more than a couple hundred dollars overall-even some total replacements don't yield more than that. The real savings is the money you didn't spend on replacement windows.

Glass issues

In most wood windows, glass is "glazed" in place, held with small metal pieces called points and sealed with putty. Even when the glass is sound, cracked and missing putty should be replaced. Glazing takes practice but is well worth the trouble.

Cost: $6 for points and putty; $32 for two pieces of single-pane glass to refit a 3x5-foot window. Allow three hours per window.

Replace cracked single-pane glass. To remove the old glass from a vinyl window, pry away the vinyl stop with a putty knife. On aluminum windows, the glass is wrapped with a rubber gasket and held by a metal strip. Remove both to free the glass. To re-install, a bead of silicone seals the glass on a vinyl window; for a metal window, clean and reuse the rubber gasket.

Cracked or fogged double-pane windows should be resealed or replaced by a glass fabricator-find them in the Yellow Pages or online directory.

Cost: $175 for double-pane glass to refit a 3x5-foot window.

Hardware failures

Before replacing a balky cranking mechanism on a casement or awning window, try cleaning it and lubricating with white lithium grease. If that doesn't do the trick, replace the mechanism.

Cost: About $3.50 for lithium grease; $40 should you need a new mechanism. Allow a half hour for lubrication per window; two hours for replacement.

Broken or paint-encrusted sash latches should be replaced.

Cost: From about $10 for a standard brass latch to $40 for an antique reproduction. Latches come in a range of finishes, from brushed metal to colored enamel. Allow about 15 minutes for the switch out.

Dave Toht has written or edited more than 60 books on home repair and remodeling, including titles for The Home Depot, Lowe's, Better Homes & Gardens, and Reader's Digest. A former contractor, Dave was editor of Remodeling Ideas magazine and continues to contribute to numerous how-to publications. He has glazed more windows than he cares to remember.