Buyers Are In The Driver's Seat Now And They Know It
The Toledo Blade reports from Ohio. "For the past four months, the Sylvania Township residents Paul and Nannette Dillon have been separated by 135 miles and a sluggish real estate market where unsold houses continue to pile up. She and the children live on Jamesford Drive in the family's $240,000 house. Her husband, a corporate executive in supply chain management, lives in a rented room near his new job in Akron."
"'It's awful for a family to have to be separated because of the housing market,' complained Nannette, an upbeat mother of four young children who has made a full-time occupation of helping her real estate agent try to sell the family's immaculate Tudor-style residence."
"And the Dillons' predicament is not unique. The region's weak economy and glut of unsold homes have conspired to create a situation where the lives of many families have become a tale of two cities."
"'A lot of people are doing what the Dillons are doing - living in two residences,' said Gail Zeisloft, a consultant with (a) Toledo human resources consulting firm. 'There are quite a few people who are in that boat or about to face it.'"
"She passed the phone to an administrative assistant, whose husband is settling into a new job in North Carolina while his wife stays in Springfield Township awaiting the sale of their $215,000 house purchased just a year ago."
"'It's nerve wracking,' confessed Tina Carmichael. 'He's under a lot of stress with his new job. When you're with someone everyday, you feel you have someone on whom you can unburden that stress load. Even though we talk and e-mail everyday, it's not the same.'"
"Part of the problem, said Christopher Bloezel, a consultant with Runzheimer International in Rochester, Wis., is that fewer firms are buying houses from transferred employees because of difficulty re-selling them. Firms that continue the practice are often being forced to hold the homes for up to seven months while paying for upkeep and improvement costs that can approach $10,000 a month, he said."
"In the two months their home has been for sale, they've had 10 lookers and one offer. 'It was ridiculous - like $50,000 less than we were asking,' Ms. Carmichael said."
The Columbus Dispatch from Ohio. "Sale prices of central Ohio homes are the lowest in four years, averaging $152,790, according to the Columbus Board of Realtors. And January sales in central Ohio -- 1,225 -- were the fewest in that month in five years, even though more houses were on the market (16,402) than in any other January on record."
"Especially vexing for the industry is the prolonged nature of the slump. Key housing indicators -- number of homes sold, average price obtained and number of days a home is listed -- began slipping in central Ohio about two years ago."
"'There's a big selection, as opposed to a few years ago, when people were bidding on fewer houses,' said Cindy Windsor, former president of the Columbus Mortgage Bankers Association."
"In those days, bidding wars often erupted. Not so now, said Gary Parsons, president-elect of the Columbus Board of Realtors."
"At builder Sovereign Homes, sales were off by 35 percent to 40 percent last year, VP Ron Casteel said. Fellow builder Duffy Homes has seen business tail off, as have all other builders."
"'One of the things we're doing in some of our communities, we've rolled back the prices to what the community started at,' said Rich Danko, VP of sales and marketing at Duffy. For instance, the company is offering $40,000 off completed homes in its Meadows at Harvest Wind development in Westerville."
The Daily Tribune from Michigan. "Now might be the best time in nearly three decades to buy a new or used home or condominium in Oakland County."
"'It's a great time to buy based upon the declining market and the number of foreclosures,' said Steven Mansour, senior loan officer at the Chase Bank branch in Royal Oak. 'Within the last two year the values dropped so it makes sense for first-time home buyers to buy in Oakland County.'"
"There's no doubt home values have dropped sharply, Realtor Peter Schump of Prudential Cranbrook Realtors in Franklin said. 'Some of the homes in Oakland County have been on the market for nine or 10 months,' he said."
"Schump said some homes that have been unsold for two or three years are being auctioned. In some cases, there's no minimum bid required for sale. 'There was a home on Haverhill in the city of Bloomfield (Hills), near Cranbrook, that was auctioned in December for roughly $1.8 million that was listed for $2.3 million,' said Schump."
"'I guess the motivation by the owner was just to get rid of it,' he added."
"Other auctions have involved foreclosures, which hit a record of 7,643 in Oakland County last year, up more than tenfold from 715 in 1998."
"In Oakland County, new and used home and condominium sales have fallen 60.9 percent since 1999, when the peak hit 33,516 sales, according to statistics."
"In January alone in Oakland County, sales fell to 813 from 1,117 in January 2007, a 27 percent decline. Wayne County has seen home sales decline 36.5 percent since 2004, while Macomb County sales have fallen 51.8 percent, records show."
"At the end of January, there were 18,673 residential and condominium listings on the market in Oakland County, said Fran Green, marketing manager of Realcomp. 'There's a glut on the market,' Green said."
"The median sales price for a residential property at the end of January was $145,000, down 19.8 percent from the median price of $180,750 in January 2007, she said."
"Rebecca said her husband was transferred to a job in Fraser at an automotive supplier and has to drive 96 miles to and from work each day. The brick home, with a walkout finished lower level, has a living room, recreation room, five bedrooms, three full bathrooms, a dining room/kitchen area, first-floor laundry room and two-car garage. The couple is asking $187,000."
"'I am optimistic,; Rebecca said. 'I'm hoping once the weather gets nicer a lot of people will get out and look at houses. We're also using the same Realtor we used when we bought our home in August 2006.'"
"But, so far, the young couple with a 4-month-old daughter haven't had any luck. 'We love our house, and we're not opposed to staying in it for a while if we have to. We didn't know my husband would get another job in the next county over,' she said."
The News Review from Michigan. "At first glance, the paperwork proliferating on an Emmet County Building bulletin board might seem mundane. But it hints at a trying process that growing numbers of Northern Michigan homeowners have been facing: foreclosure."
"A decade ago, the foreclosure sales announced in legal notices like these tended to be a once-a-month occurrence -- perhaps even less frequent -- in many counties across the region. But lately, several officials who process foreclosures after homeowners default on their loans say it hasn't been unusual for a handful of properties to go up for bids each week."
"'This is the worst I've ever seen,' said Charlevoix County register of deeds Charlene Novotny. 'When I started working here 30 years ago, there was maybe one a year.'"
"'There's probably fault on both sides,' Charlevoix County undersheriff Don Schneider said. 'People are going over their heads in debt, and those mortgage companies have been too free to give them money.'"
"When examining yearly foreclosure sale tallies for seven Northern Michigan counties -- Antrim, Charlevoix, Cheboygan, Crawford, Emmet, Montmorency and Otsego -- all but one showed increases greater than 60 percent between 2005 and 2007. Among these counties, Emmet's 2007 total showed the sharpest increase -- 230 percent -- from the tally two years earlier."
"In Emmet County, Sheriff Pete Wallin said recent foreclosures have involved 'mostly mortgages that have been taken out in the last three to four years.'"
"In Charlevoix County, undersheriff Schneider said recent foreclosures in Charlevoix County have affected homes with values ranging from less than $100,000 up to $1 million. 'It pretty much is right across the scale,' he said."
The Herald News from Illinois. "With national fears of a recession and the growing foreclosure rate, real estate professionals assured potential buyers of the housing market's vitality during a home-buying seminar Saturday at The Herald News."
"'It truly is a good time to buy,' said Jim Karges, president of Karges Realty. 'There are many houses for sale right now. The supply is great. The buyers have all the control.'"
"Chris Kauzlaric, of Channahon, is considering buying his first home and came to the seminar looking for 'a holistic perspective.' 'I'm pretty infantile in my stages of understanding the market,' he said. 'It's nice to have an expert in each one of the sectors.'"
"While geared toward first-time buyers, the seminar also addressed concerns of current homeowners. For buyers with a home to sell, Karges said mortgage rates should dictate whether it's a good time to buy."
"'It's a wash,' he said. 'You're buying for less and selling for less so look at interest rates.'"
The Chicago Tribune from Illinois. "Home inventories are upand appreciation ain't what it used to be. That has sellers worried as real estate shifts further into a buyer's market."
"'Buyers are in the driver's seat now and they know it,' said Jim Merrion, regional director for ReMax. 'They are driving hard bargains and getting what they want. They are asking for contracts contingent on selling their old houses. A few years ago, sellers wouldn't take these, but they do now. Buyers are not shy about asking for all kinds of throw-ins. I've seen them ask for -- and get -- patio sets, outdoor grills, new appliances, furnaces, home warranties.'"
"When Jim Weinberg and his wife, Julie, bought their Glenview house in October, they got the seller to throw in a plasma TV and surround-sound stereo. But best of all, said Weinberg, they got the home at a rock-bottom price. Their week-long negotiation that brought a $160,000 price reduction."
"'When the market recovers, the house will appreciate,' Weinberg added."
"'Buyers are relaxed and patient because they know they have the edge,' said Jeff Kropp, broker in Chicago. 'If their needs aren't met, they walk.'"
"Their needs, he agrees, go way beyond price."
"'Getting through inspections are the most difficult part of negotiations now,' said Charlie Vernon, real estate broker in Evanston. 'The buyer needs to realize that the seller has lived with these problems and hasn't seen the need to fix them. And the seller needs to realize that fewer buyers are willing to remodel kitchens or spend weekends painting. ... So, in the end, the inspection points all come down to dollars.'"
"Thanks to larger inventories of homes for sale, buyers have more choices, said Rick Hauser, Realtor in Hawthorn Woods -- and that includes the homes in foreclosure."
"'Used to be, just rehabbers wanted these bank-owned houses,' said Kropp. 'But now buyers are looking at these diamonds in the rough, which are even lower-priced than other properties. Often, all they need is cosmetic changes or new appliances.'"
"'As a seller, you have to give a little or even a lot,' said Vernon. As a seller's agent, Vernon said he talks to the the seller on price, based on what he believes the house will sell for."
"'Never mind what your neighbor sold his house for a few years ago,' said Vernon. 'You have to look at very recent comps. And the buyer doesn't care if you are highly mortgaged because you took out a home-equity loan to take a vacation. The buyer doesn't owe you that.'"
"Vernon said some sellers still aren't willing to budge from prices they believe their houses are worth. 'Then, the house is theirs to keep, and that's their right,' said Vernon."