Real Estate Information Archive


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New Home Forecast Summer 2018 - What You Need to Know

by The Jamey Kramer Group

Housing forecast

In years past, house hunting could be a fun, relaxed time. Buyers could afford to take their time and see multiple listings before making a decision. There were plenty of homes to choose from.

However, the housing market has not been kind to buyers in the last several years. One reason for this that we keep writing about is the housing shortage.

It's especially frustrating for first-time home buyers who are competing with so many others for the few starter homes on the market. And starter home prices are also rising.

You may have heard that new home construction is returning. That is true. More new homes are being built now than there have been since before the 2008 and the beginning of the recession.

Read on to learn about what's trending and how it could impact you as you continue your search!

New Homes Statistics in 2018

In May of this year, builders completed almost 1.3 million new homes across the U.S. according to the
joint report put out by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

The last time that many houses were completed in a month was in January of 2018 when a little over 1.3 million new homes were completed.

There were also more new homes completed this year compared with this time last year. In April, 1.9% more new homes were completed than in April of 2017. In May it was even better: 10.4% up from May of 2017.

Future prospects for new homes and new home buyers also looks good. This trend can be traced through how many permits have been issued. The number of new permits issued to home builders was up 8% in May over May of 2017, so more new homes are being built this summer than last summer.

In addition, there are permits to put up single-family houses, which is good for new home buyers as well. Permits for single-family homes went up 7.7% over last year. New construction has varied from region to region, but the Midwest has seen one of the most substantial bumps - 17.4% - in permits issued to builders.

One of the most significant gains is in housing starts. Construction work on new homes that has begun but hasn't finished yet has gone up 20.3% from the same time last year. The Midwest overall has seen the biggest gain in new construction, which continues to make it one of the most affordable regions in the country.

The Downsides to New Construction

Although this region has seen the most growth, there still aren't enough new homes being constructed to meet all the demand. More new homes do help the struggling buyers. However, it's always going to be competitive. The market needs 1.25 million new homes every year to meet demand, but this current building pace doesn't match that. It's about 30% below the required supply.

Another potential frustration is in the types of homes being built. Demand is highest for single-family starter homes, as there is an increasing number of first-time buyers. New homes are more expensive than previously existing homes because of the associated costs.

Additionally, builders are erecting larger houses for clients with a higher income. Most of the new homes that have gone up have multiple bedrooms and bathrooms with a price-point to match.

Most new construction, as you can imagine, is happening further out from city centers and established suburbs. They are more likely to be part of a homeowners association, which can add more expense in the form of HOA fees. This is all good news for families looking for this type of new building, but it doesn't help young buyers looking for the right home not too far away.


New home construction is excellent news for the housing market overall. Even if you are a first-time buyer, it could end up impacting you positively. The good news is the housing shortage is beginning to ease, if ever so slightly.

If you are interested in looking for a new house in the Northville, Novi, or South Lyon, Michigan area, please give us a call. We would be honored to help!


How to Buy a House in a Hot Market

by The Jamey Kramer Group

House in a Hot Market

You’ve probably heard this phrase by now - it’s a hot market.

What was a burgeoning development in 2016 has continued in 2017, and it’s only getting more pronounced. There are fewer homes on the market in every county in Southeast Michigan.

Metro Detroit has seen the largest inventory decline - 35% - since the recession and subsequent increase in house prices: 44%. The only county surpassing it in terms of percent changes is St. Clair County.

Here are the figures by percentages. You can see the changes from 2016:


  • Sales, September 2016: 283
  • Sales, September 2017: 359
  • Percent increase/decrease: 26.9 percent
  • Median sale price, September 2016: $22,728
  • Median sale price, September 2017: $32,750
  • Percent increase/decrease: 44.1 percent
  • Average days on market, September 2016: 54
  • Average days on market, September 2017: 49
  • Percent increase/decrease: -9.3 percent
  • On-market listings, September 2016: 2,526
  • On-market listings, September 2017: 1,643
  • Percent increase/decrease: -35 percent

Wayne County

  • Sales, September 2016: 1,824
  • Sales, September 2017: 1,902
  • Percent increase/decrease: 4.3 percent
  • Median sale price, September 2016: $118,000
  • Median sale price, September 2017: $127,600
  • Percent increase/decrease: 8.1 percent
  • Average days on market, September 2016: 35
  • Average days on market, September 2017: 28
  • Percent increase/decrease: -20 percent
  • On-market listings, September 2016: 6,967
  • On-market listings, September 2017: 4,755
  • Percent increase/decrease: -31.7 percent

Macomb County

  • Sales, September 2016: 1,323
  • Sales, September 2017: 1,244
  • Percent increase/decrease: -6 percent
  • Median sale price, September 2016: $149,500
  • Median sale price, September 2017: $162,000
  • Percent increase/decrease: 8.4 percent
  • Average days on market, September 2016: 38
  • Average days on market, September 2017: 26
  • Percent increase/decrease: -31.6 percent
  • On-market listings, September 2016: 3,915
  • On-market listings, September 2017: 2,756
  • Percent increase/decrease: -29.6 percent

Oakland County

  • Sales, September 2016: 1,930
  • Sales, September 2017: 1,851
  • Percent increase/decrease: -4.1 percent
  • Median sale price, September 2016: $215,000
  • Median sale price, September 2017: $229,000
  • Percent increase/decrease: 6.5 percent
  • Average days on market, September 2016: 35
  • Average days on market, September 2017: 27
  • Percent increase/decrease: -22.9 percent
  • On-market listings, September 2016: 6,683
  • On-market listings, September 2017: 4,960
  • Percent increase/decrease: -25.8 percent

Source: Realcomp Ltd. II.

Good News

This is all good news. It’s what we in the business have been waiting for a long time. In addition, it is what you should be happy about if you are - or are hoping to be - a homeowner.

This does pose problems for home buyers, though. If you are frustrated by the lack of inventory, have been searching for a long time, or have lost a number of bidding wars, you are probably not rejoicing at this turn of events.

There are some good strategies out there, but remember this: the current market is a much better position in which to own a house. When you do get a house, your investment will be much better protected.

Strategies for Sellers

If your home looks like an “after” picture and is competitively priced, it could sell in a matter of days or hours, but don’t be fooled. Houses can still sit on the market for months. This happens when sellers believe they don’t have to keep their home maintained or can drive up the asking price too high. It’s not a fool-proof climate for sellers. The “hottest” homes are still the move-in ready ones priced right.

Keep in mind that should you sell quickly, you will be on the other end of the deal trying to compete with other buyers.

Strategies for Buyers

The two things to keep in mind are to be patient and to have flexibility. However, that is easy to say and a lot harder to do.

  • If you have flexibility on your lease end day - or closing on your own house - you have a lot more range of homes from which to choose. If you have the financial means to buy a home before selling your home, are renting, or can stay with family or friends, you have something tangible to offer a seller. Sellers very well may choose an offer with less stress for them (if they can stay for a week or month after closing, for instance) over a higher price.
  • The holiday season may be the best time of year to buy a home in Michigan. Activity generally slows way down during this season, but employers transfer their employees in and out at all times of the year. Sellers who have to get out at this time of year, coupled with a general inactivity in the market, could equal a relatively smooth home buying process. If you are willing to not take a break while others are taking theirs, it might be the way to finally get a house.
  • Everyone, everyone, everyone wants the move-in ready home. The reality is most of them aren’t. If you are determined to get that one, be prepared to get in a bidding war. If you are tired of the bidding wars, think about making a quick offer on a house that is sound and well-maintained but needs a new kitchen or flooring. There are mortgage lenders out there who offer renovation financing as part of a home purchase.
  • There are things other than high offers that are attractive to sellers: strong mortgage approval letters, larger down payments, quick closing, and short inspection periods. Consider whether you can offer them any of those things.


The current mortgage rates make buying still a good decision. Most mortgage payments will end up being lower than monthly rent payments. Patience and flexibility will pay off in the end and you will get the right house.

If you are ready to buy or sell, it is important that you have an experienced real estate professional by your side. Please give us a call. We would be honored to help!


Michigan Housing Shortage Unlikely to Change in 2017

by The Jamey Kramer Group

Michigan housing market

There is no getting around the fact that the number of homes for sale in Michigan this year is way down. According to an Associated Press analysis, here’s the breakdown of comparison between 2016 and 2017 by county for the Metro Detroit area:

  • In Macomb County, average prices increased 5.4 percent, listings dropped 54.8 percent, and days on the market before sale decreased 4 percent.
  • In Oakland County, average prices jumped 9.3 percent, listings fell 39.7 percent, and days on the market are down 14.5 percent.
  • In Wayne County, excluding Detroit, average prices rose 14.7 percent, listings were down 45.1 percent, and days on the market decreased 17.3 percent.

We know these things are happening, and we know it can be difficult at this time to be a home buyer, but what are some of the reasons behind this?

The main reason is, of course, the recession. Mainly, repercussions of the recession that began in 2008.

  • Homeowners lost a lot of equity in their homes during the recession. Homeowners who have been eager to get out of their homes in the past may start to think again now that the market is coming back. Home values are starting to rise again and if homeowners think they can recoup some of their losses, they want to try to keep their homes.
  • The recession saw an increase in homeowners staying put and putting money - and sweat equity - into remodeling. They want to stay put. This is especially true of the older generation of homeowners: baby boomers. Many of them have refinanced or are taking advantage of their low interest rates and are working longer. They aren’t ready to downsize.
  • The market crash led to an almost complete shutdown of new home construction. It’s building back up, but it takes time.
  • Investors and homeowners who bought foreclosed properties in the lowest point of the recession might be waiting to sell until they can get a bigger return on their investments. The market is up, however, they think there’s still room to grow.
  • Homeowners may not trust that it’s real. After all, the recession was a huge deal for everyone. No one knows that better than homeowners in the Detroit metropolitan area. It takes a long time for homeowners to feel trustful again and that’s not an easily quantifiable thing.

Another big factor may be a psychological one. It’s a seller’s market, but sellers will quickly become buyers once they sell their home. Many - if not most - properties will not sit on the market for longer than 30 days. Many of them are selling within hours.

In addition, cash offers and bidding wars are the norm right now. If a potential seller can’t find the perfect home at the perfect price before selling, which is tough in this tight market, they won’t be confident enough to sell. Perhaps the tight buyer’s market is keeping potential sellers from putting their homes on the market.


It’s a crazy seller’s market out there and an even crazier buyer’s market. The recession hit everyone pretty hard, so it’s going to take some time for potential sellers to finally move on to that bigger dream home. 

If you are thinking about buying a new house or selling your current one, it is important to have an experienced real estate agent by your side. Please give us a call today.


Best School Districts in Michigan and Why It Matters

by The Jamey Kramer Group

Best School Districts in Michigan and Why It Matters

There many different factors that influence a home buyer’s decision. When making a list of top priorities, you might have found that the quality of the school district is among the top of your own list. If this is the case, you can rest assured that you are not alone.

Buying a home in a top-rated school is among many buyers’ key factors, and it is for good reason. Buying in a district with great schools will have many exponential benefits. Regardless if you have kids or not, choosing a home in a quality school district has become a key factor in home buying a home.

What to Expect from a Quality School District

While each school district is different, there are some common components that help to create that top notch school. Oftentimes top rated schools will have great teachers, better test scores, and better books. However, what might be a significant benefit for all people, regardless if they have children or not, is that it will help to preserve home values and ensure faster resale rates according to Trulia.

Studies Show School District as a Key Factor

Many buyers are choosing to search for their home by school district. Trulia conducted a survey and found that 19% of Americans indicated that their “dream home” is located in a great school district. That includes people without children. The percentage jumped to 35% who desire to live in a great school district among parents with children under the age of eighteen.

Another study was conducted by the National Association of REALTORS profile of Home Buyers and Sellers. It found even stronger results. They found that 29% of home buyers listed school districts as a deciding factor in their home buying decision. Choosing a home in a desired school district is a key factor in home-buying decisions.

Top Rated Michigan Schools for 2016

According to Niche, Bloomfield Hills Schools, Birmingham Public Schools, and Okemos Public Schools were the top three school districts in Michigan. Both Novi Community School District and Northville Public School District ranked in the top 10 school districts in all of Michigan. Novi Community School was ranked the fourth best school district. Northville Public School District was ranked tenth best school district.

When you see lists like this, it makes one wonder what goes into these ratings. The criteria for this ranking were based on “statistics, student and parent reviews, and expert insights. Ranking factors include state test scores, college readiness, graduation rates, SAT/ACT scores, teacher quality, student and parent reviews, and more.” To see more of how they calculate the rankings, check out the Niche’s explanation at 2016 Best School Districts Ranking Methodology.

Buying in the Area?

The quality of a school district clearly makes a significant impact for both home buyers and sellers. If you are looking to buy a home in the Novi and Northville areas, you can know for sure that you are making a great decision. You will not only be making an investment into your children’s educational future, but making a great financial investment.

Contact the Jamey Kramer Group today to view homes in Novi and Northville.  


Market Prepares for New Mortgage Disclosure Rules

by The Jamey Kramer Group

The date has been announced and it is now time to start preparing for the new mortgage disclosure rules. In this article, you will find answers to questions including:

  • What are the new mortgage disclosure rules?
  • As a buyer, how do these rules affect me?
  • What is the date the rules go into effect?
  • and more.

Previous Regulations

Currently there are two regulations in place to help do that.

The Truth In Lending Act - TILA or Regulation Z

This regulation was created in 1968. It standardizes the way mortgage fees and terms are calculated and disclosed.

The Real Estate Settlement Procedures Act - RESPA or Regulation X

According to Zillow, this regulation was created in 1974 and prohibits different housing service providers, such as lenders, real estate agents, escrow companies, attorneys etc, “from paying each other fees to refer consumers to each other.” This protects the consumer from inflating real estate transaction costs.

The problem has been that the consumer won’t see the official break down of all the fees until they receive the HUD-1. This is supposed to happen before closing, but sometimes doesn’t until the day of closing.

Oftentimes, the breakdown on HUD-1 and the final Truth in Lending disclosure can differ from the original Truth in Lending disclosure. The original Truth in Lending is given within three days of applying for a home purchase loan.

According to Fox Business, the Consumer Financial Protection Bureau believes this process is too confusing.

The New Regulations

Dennis Rodkin from the Chicago Real Estate Daily, had an interesting way of describing the new regulations,

 “While title companies and real estate agents and lawyers are scrambling to be ready by the deadline, home buyers should feel more like guests at a well-executed dinner party, oblivious to the mess in the kitchen and content to be served each course at just the right time.”

The idea behind the new regulations is to give home buyers more information about their loan before they head to the closing.

As of October 1st, 2015, the consumer will again receive two disclosure forms described as follows:

The Loan Estimate Form

One will be provided at the beginning within 3 days of applying for a home purchase loan. The consumer will receive a Loan Estimate Form. This form will breakdown the fees, cash needed, rate, terms, and costs of the loan over its lifetime.

The Closing Disclosure Form

The second disclosure form will be provided at least 3 days before closing. The consumer will be given a Closing Disclosure Form. The Closing Disclosure Form must look like the first form, the Loan Estimate Form, but will also have the costs paid by the buyer, seller, and third parties.

This process should provide consumers with time to digest the information before it’s too late.

What Do You Think?

Do you think this will make the process easier for the consumer? Would you find it helpful to know all the costs with ample time to make your decision?

Metro Detroit Housing Market Continues to Accelerate

by The Jamey Kramer Group

Are you considering buying or selling a home?

Have you been frustrated with the lack of housing inventory available?

If you are considering buying or selling a home, this article is for you. There hasn’t been a better time to buy or sell in Michigan in years. Mortgage rates are low, housing inventory is up, and spring is here.

According to an article by the Detroit Free Press, many suburban Detroit home sale prices are still about 20% below their peak of a decade ago. However, prices have been slowly rising since 2012. Many neighborhoods are seeing yearly gain of 10% or more.

Here is what we know: quality inventory is selling fast.

The Detroit Free Press reported the following counties and their recent gains:

  • Oakland County: The number of home sales jumped nearly 17% in the first quarter compared with 2014 as the median sale price rose 5% to $172,750, according to Advertising That Works figures.
  • Macomb County: Sales rose 6.4% for the quarter as prices gained 6.5% to $114,000 from a year ago.
  • Wayne County: Sales for just the month of March were 4.4% higher, and the median sales price climbed 13% to $72,000, the only data available from Advertising that Works.

In an article that I published back in February, I highlighted three main reasons why chief economists advice buying your next home now. Those compelling reasons include:

  1. Mortgage Rates Will Rise

    Surprisingly, mortgage rates are still below 4%. That will not always be the case. Many chief economists have predicted that rates will rise. These rock bottom mortgage rates are pushing more Metro Detroiters to buy.

    Want to see how much difference a percentage of interest rate can make? In my article, Low Mortgage Interest Rate Stats You Want to Know, I covered just how much difference that 1% can make.

    For example, using a $300,000 mortgage and comparing a 4.5% interest rate to a 5.5%, the following would apply:
  • With a 4.5% interest rate, you could buy 40 more Starbucks Grande Café Lattes every month as compared to a 5.5% interest rate.
  • In the first year of owning that 4.5% mortgage, you could take your family on a week-long vacation.
  1. Housing Prices Will Decelerate

    Although many homes have increased in value, the rise in housing prices is expected to slow down. As I explained earlier, however, values may not have recovered to the price points that they were a decade ago.

    According to Forbes, Zillow, and, most are predicting a rise in value of up to 5%.

    For many home owners, the increase they have seen has been enough to get them out from underwater with their mortgage.
  1. Job Growth and Consumer Confidence

    One of the reasons why people are buying and selling this spring, according to chief economists and the recently published article in the Detroit Free Press, is that more people have jobs. The auto industry has recovered and is hiring again.

Take Away

If you have been on the fence for buying a home or selling your current home, there has never been a better time. If you have any questions about either process, please give my office a call. I would love to have the opportunity to answer your questions.


How to Start Your Search for Your Dream Home

by The Jamey Kramer Group

How to Start Your Search for Your Dream Home

Do you feel lost with all the options when looking for a home?

Have the ups and downs of the market made you a little nervous about buying a home?

Buying a home is a big deal. With everything that has happened in the market over the last 10 years, it is understandable why so many people feel a little tense when it comes to purchasing a home. In addition, there are a multitude of options that are available these days on the Internet, and you may not even know where to start.

We wanted to share with you a great way to start your search for your dream home. We will explain why it is great and how to do it.

How to Start Your Dream Home Search

A great way to start your dream housing search is by narrowing the search down to a specific area. We suggest that you start with the highest rated school districts in the areas where you would like to live. You will want to do this whether you have children or not.

It is an obvious choice why parents or those planning to have a family in the future would look for a home in a good school district. What parent wouldn’t want to send their little Einstein to the best school in the area and give them a world of opportunity?

What does this mean for those of us who are not having children? Why would we pay more for a good school district?

Here are a few reasons why paying more to be in a good school district is worth it.

  1. A Good School District Could Protect You From the Market’s Ups and Downs
    Zillow calls buying in a good school district a “safer bet”. As mentioned earlier, we all know the harsh reality of the housing market’s fickle nature. Buying in a good school district is a “safer bet” because a good school district can be what lifts prices of all the nearby homes out of a down market.
  1. The Resale Factor
    Here is what Forbes had to say about the importance of good schools, 

    “Even though you might not have children, buying a home in a good school district is always smart. If the schools are desirable, homes tend to hold their value.”

    It is always important to consider the home’s potential resale value when you purchase it. Homes in good school districts are more likely to hang on to their value even through tough economic times.

The Downside

The main downside of purchasing your home in a good school district is most likely the home will be more desirable and pricier.

Bringing It Home

A great place to start your housing search is in an area with great public schools. While you may pay more upfront, your home’s value will be “safer” during economic downturns. When it is time to sell, your home will more likely retain its value.

How to Get Started

To get started, you may like to read Top 10 Best Small Cities for Education in America and Novi, Michigan Scores 2nd Best Schools In Small Town America. The next step is to partner with an experienced real estate agent that will work diligently on your behalf. We would be honored to help you find your dream home in the school district of your choice. When you are ready, please give our office a call.


3 Areas to Consider Before You Buy Your Fixer-Upper

by The Jamey Kramer Group

Do you find yourself watching marathons of HGTV?

We have all had those moments after watching marathons of HGTV shows like Fixer-Upper, Property Brothers, and Flip or Flop. Those moments where we think, “I can do that.”

We start dreaming about our future fixer-upper; however, we are usually dreaming about the end result and not the actual condition of the house when we buy it. It is exciting to think about getting your dream custom home for less.

We want you have it all, and we want to help you along the way. If a fixer-upper is what you want, below you will find 3 areas of the home to pay attention to if you are considering buying one.

3 Areas to Note If You’re Buying a Fixer-Upper

  1. Foundation and Structure

When you are trying to identify foundational problems in your home, you are basically looking for cracks. reminds us not to just look in the basement, also look,

  • On the walls,
  • The doorways,
  • in the vinyl or ceramic tiles,
  • Where walls meet.

In addition, check these areas for possible structural damage,

  • Check to see if the door is jamming or failing to latch,
  • Make sure all the windows open and close easily,
  • In the basement make sure there isn’t any water or water damage.

Structure and foundations problems could cost up to $20,000 or more.

  1. Roof

In an article by MSN Real Estate, the author points out to make sure the roof isn’t sagging. If it is sagging, that could mean it’s bearing too much weight. Most likely this is caused by too many shingles on top of each other.

However, a sagging roof could also be caused by snow damage, especially here in Michigan. 

A new roof could cost you between $6,000 and $8,000 dollars, so make sure that you know what you are getting into.

  1. Electrical

It isn’t uncommon for older homes to have electrical problems. It could be a faulty electrical system or the old circuit-breaker panels aren’t working. Either way, the cost of rehab can be expensive, especially if you have to update the wiring.

Making sure the electrical in your home is critical for your safety and cannot be ignored. LifeHacker reported the cost of a new electrical system around $2,500.


We would be honored to help you find your dream home. Maybe a fixer-upper is for you and maybe it isn’t. The list above is not exhaustive.

Purchasing a fixer-upper is quite the task, and you may find it helpful to hire a professional to rehab the home, especially if there are any roofing, electrical or structural problems.

If you need any help finding the perfect home for you and your family, please give our office a call. We look forward to hearing from you!


Strategies You Need to Know to Win a Bidding War for Your Dream Home

by The Jamey Kramer Group

What if you make an offer that is too low or too high?

You’ve searched for it, you’ve dreamt about it, and now you have finally found it - your dream home. The only piece left is how to get it. Right now the inventory for homes is low making it a seller’s market. Oftentimes when this happens, we see bidding wars.

A bidding war could happen if you are not the only buyer making an offer. Today, we would like to share with you strategies that will help you win the bidding war and the home of your dreams.

  1. Getting Pre-Approved

These days, you may find yourself competing with all-cash offers. In a recently published article by MSN Real Estate, author Susan Johnston of U.S. News & World Report describes the importance of having your financing ready to go when engaging in a bidding war. Get pre-approved for the loan and bring a copy when you make your offer.

  1. The Right Price

Who doesn’t love a great deal? However, when battling other offers in a bidding war, you don’t want to make an offer that is too low. You also don’t want to overpay. A good real estate agent is worth their weight in gold and can help you to determine the right price.

  1. Be Flexible on the Closing Date

The Housing Guru explains that one way to help win the bidding war is to be sensitive to the seller’s wishes about the closing date. Your agent can find out what would be the most convenient date to close on the house for the seller. You can then do your best to accommodate their wishes.

  1. Cash Truly is King

According to FoxBusiness, all cash offers account for 40% of recent home purchases. There is no denying it. Offering someone cash for their home will be an end to the bidding war.

  1. Be Careful with Contingencies

Another way to make your offer stand out is to be careful with contingencies. Contingencies or inspections can provide delays in the process, which sellers don’t normally like. Make sure that you are only asking for what you refuse to compromise on.

  1. Let the Seller Get to Know You

Recently, my friend’s family sold their grandparents’ home. This home was purchased in 1954, and their grandfather had lived there until he passed away last year. He had made many personal updates to the home that really set it apart, and his craftsmanship had created a lot of pride amongst the family members.

He left the home to his six kids and his wife. One couple that was interested in purchasing the house stood out to the seven sellers. While only one of the seven beneficiaries was the trustee of the estate, all seven sellers had been given a voice in who could purchase the home. It was a tough crowd to please.

The seven sellers were won over by this young couple and were actually excited to sell their childhood home to them because they were the kind of people they could see living there.

The kindness and likeability that the purchasing couple showed got them the favor of seven grieving sellers. 

One way to do this is to write a letter to the sellers describing what you love about the home and neighborhood. That personal touch might be the piece that wins your the home. 

Take Away

One of the best ways to win a bidding war that isn’t mentioned above is to have an experienced and trustworthy real estate agent by your side. They can help you to offer the right price, know which contingencies are needed, paint you in the best light with the seller and offer you the advice you need to win your dream home. The Jamey Kramer Group would be honored to help. Please call our office today.






3 Secrets to Buying a Foreclosed Home

by The Jamey Kramer Group

3 Secrets to Buying a Foreclosed Home

While the foreclosure crisis is not what it was, there are still a lot of homes on the market that have been foreclosed. If you have the patience and know what to expect, you could get a good deal on a home by purchasing a foreclosed home. It may take extra work, but the rewards could be well worth all your effort.

Today, we are sharing with you 3 secrets to buying a foreclosed home. These secrets will cover tricks of the trade, who you will actually be purchasing the home from, and what to expect.

  1. There Are 3 Ways to Buy a Foreclosed Home

    The first thing to know about buying a foreclosed home is that the more you know the better. That is why our first secret isn’t a secret at all. Instead, it’s the 3 different ways you can buy a foreclosed home:

    • Pre-foreclosure Homes
      This is the stage in the foreclosure process where the current homeowner had the opportunity to bring the loan up to date. They have been sent a Notice of Default and are given about 3-6 months. To avoid having the foreclosure on their records, the home owner might try and sell their house.
    • At Auction
      If the homeowner is unable to bring their loan current, the lender may try and sell the home at auction. The trustee is usually the one at the auction to represent the lender and receive the cash for the winning bidder. The opening bids usually equal something like the balance of the outstanding loan + the accrued interest on the loan + the cost of the foreclosure process + the cost of the trustee.
    • Real Estate Owned Property
      If no one bids the amount of the opening bid, the trustee will purchase the home and it will become a Bank-Owned Property or a Real Estate Owned property. According to, buying a foreclosed home in this stage is the safest way to purchase a foreclosed home.
  2. No Disclosures

    In a REO or Real Estate Owned property where the bank is the one who actually owns the home, it is unlikely that the bank will share with you any information about the property. That means no information on permits and no records.

    Here is where the extra work comes in and where doing the research comes in handy. Zillow recommends actually going to the city’s building department and checking the property’s permits and records.

    Quick Tip: Have your realtor check to see if the home has been sold in the last 5 years. If it has, it’s likely to have the previous disclosure information.
  3. Foreclosed Homes are “As Is”

    One man recently bought a foreclosed home and did not expect what happened. Not only did the previous homeowners take all the appliances, which you might expect, but they also took all the trim off the walls, the light fixtures, the cabinet handle and other odds and ends.

    When you purchase a foreclosed home, you are purchasing your home as is.


Buying a foreclosed home has advantages and disadvantages. With a lot of research, a good agent and some patience, you just might be able to get the deal you’ve been hoping for. If you have any questions, or if you are interested in purchasing a new house, please give our office a call.


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