Closing Cost Basics | Ann Arbor Real Estate

Closing costs can sneak up on an unsuspecting home buyer in a hurry. In order to avoid any unexpected obstacles, prepare for the total purchase cost from the beginning through understanding what closing costs are and what they include.

Ann Arbor Real Estate
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About Closing Costs

Closing costs are typically associated with fees due on, or before, the date a buyer closes on a new home. Real estate agents and brokers, the mortgage lender, insurance companies, and state and local governmental agencies are the most likely sources of these fees. Some items that tend to get lumped in with closing costs are actually paid prior to closing or separate from the closing itself. Examples include title search fees, title insurance, taxes, property insurance and association fees.

Upfront costs can vary widely from market to market. There can be as many as a couple dozen items that need to be handled by a home buyer before signing on the dotted line at closing. They range from the loan origination fee, typically 1 percent of the purchase price, to costs for required inspections, an appraisal, and for recording fees. The title search and title insurance fees protect the lender from secondary and silent liens on the property. In some cases, an escrow deposit to cover the cost of private mortgage insurance and the first few months of property taxes will be required.

Estimated Price of Closing Costs

As a rule, home buyers will pay anywhere from two percent to five percent of the total purchase price in upfront costs. A recent nationwide survey of closing costs showed that Michigan’s were among the lowest in the U. S. The survey used a $200,000 home value as the benchmark. In Michigan, these costs amounted to an average of $2,203, of which $1591 went to the lender, and $611 went to third parties. A buyer seeking to “buy down” the interest rate upfront will add one percentage point of the total purchase price for each discount point purchased. Prepaid fees were also excluded from the survey.

Minimizing Their Impact

It’s not possible to avoid upfront costs entirely, but there are ways to minimize them. If the lender allows for it, a no-closing-cost mortgage is one possibility. The lender will typically charge a higher interest rate or include these costs in the mortgage, but for a cash squeezed buyer already struggling to come up with the down payment, it can be a good option. Finally, closing costs in a traditional transaction are born by the home buyer. But, as always, many aspects of a real estate purchase can be negotiated. Closing costs are no exception. A seller who agrees to pay for closing costs, however, may be less willing to negotiate in other areas.

Do your homework early to avoid last minute surprises. Then, sit down with your Ann Arbor area real estate agent with the confidence you are ready to write the purchase offer that best suits your needs.

Ann Arbor Area Board of REALTORS Real Estate Market Sales are Up


The News is Out
– The Ann Arbor Area Board of REALTORS® has just published the September Market Report.  This month, just like last month, we continue to climb upward.  The entire Washtenaw County area is showing steady, positive gains in all segments of the real estate market. 2012 Residential Sales are up year-to-date 7.23 %. Condo Sales are up 6.1 % compared to this time last year. Average Sale Price for residential property in September 2012 was $214,059, an increase  of 12.5 % over last year and the year-to-date price is up over last year by 9.4 %.

And The News is Good – The Average Days on Market has dropped for residential sales from 76 to 59 days, a decrease of 22.4 %.  Homes are selling quickly.  Properties are selling faster for more money, many times with multiple offers.  With that said, total dollar volume of all sold inventory is up 17.7 % for the year.  The market is strong and expected to continue through the end of  2012.

But there is one item that needs improvement.  Listing inventory is down 20% from last year at this time.  This is the most opportune time to list your home which has just been validated by all the positive news just mentioned above.  Do not sit back and wonder if your home will sell; find out what your home is worth.

Unemployment is down to 5 percent too.

Sellers – Buyers are ready, willing and able to make their next home purchase.  Some are just waiting for the right house and that could be yours.  Many buyers are already approved by their mortgage lender and looking to lock in on those fantastic interest rates.  Put your home on the market today. Click the Ann Arbor Area Board of REALTORS MLS Sales Report below to analyze all the good news and to view a larger image.

The “Monthly Housing Statistics” published each month by the Ann Arbor Area Board of REALTORS® represent the housing activity of the Multiple Listing Service and not necessarily all the housing activity that has occurred in Washtenaw County. Days on market (DOM) figures are indicated only for that particular current listing. If the property was taken off the market and then re-listed, the count starts over and would not necessarily reflect the total days the property has been available for purchase since it was first made available.

To get reliable information pertaining to the Sale of your home, call the professionals at Kathy Toth & Team, Keller Williams Realty Ann Arbor Market Center 734.669.0337.

Find out more from the Ann Arbor Experts!  Search for homes in the Ann Arbor Area.

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Prices Up 9 Percent According to the Ann Arbor Area Board of REALTORS

Ann Arbor Hands On Museum is a Great Place to Visit
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Ann Arbor and the surrounding Washtenaw County, Michigan area is still reporting impressive price increases in residential home prices heading into Fall.  The Ann Arbor real estate market  has held up with positive improvements in pricing and number of units sold.  This great news is expected to continue as interest rates continue to stay low which helps to keep those properties selling.   With such a low volume of listings available for sale, properties are selling quickly and with multiple offers in some instances.  This is truly stabilizing the market and making a swing to a Sellers Market.  Sellers – It is Time To List!

The following “August Monthly Housing Statistics” are published with activity from the Ann Arbor Board of REALTORS Multiple Listing Service keeping in mind that these stats do not contain all the housing activity that has occurred in the Washtenaw County area.  Here are some stats from the August Report.

  • August sales of residential properties are up 15 percent over August of last year, 7.4 percent for 2012 year-to-date, compared to 2011.
  • Inventory is still lagging, with the total number of listings down 7 percent from last year. Less inventory drives prices up, due to the higher demand for less supply.
  • The average residential sale price in August 2012 was $220,738, up 8.7 percent from the average sale price of last August which was $203,061.
  • Year to date median home prices are up 9 percent from $159,000 to $174,000.
  • Days on market have dropped to 61 days, compared to 82 days in August of 2011. When you look at the Days on market (DOM) numbers – they do not reflect cumulative  days on market.

When you need expert real estate advice, contact the Kathy Toth and Team REALTORS at 734.669.0337.

To search for homes in Dexter and the surrounding Ann Arbor Market area go to HomeSearchAnnArbor.com

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View My Google+ Profile   | Read Our Blog at AnnArborTalks.com  |  Watch Our Videos

www.KathyToth.com Keller Williams Realty

Milan, Michigan Real Estate Market is Trending Upward

Milan Michigan Real Estate Trending UPThere is a positive Upward Trend in the Milan Real Estate Market.  When reviewing the 24-month chart below, for the Milan, Michigan area, we need put our attention to the red line on the chart. The red line indicates an upward trend in the Linear (Average Square Foot / Sale Price).  The average square foot price is now hovering on the linear line around $70.00 per square foot for the month of November, 2011, as compared to November 2010 at approximately $67.00 per square foot. This year, compared to last year shows an approximate 5.36 percent increase in the average linear (sales price per square foot) in Milan. This upward trend in sales price per square foot is very good news for Sellers and REALTORs alike.  Home sales are down by 14.5 percent compared to last year’s total sales.  This shows that the market is flat in total volume of sales over 2 years, however, homes are selling at a higher square foot price which is a stabilizing factor over a 2-year time frame.  Our linear indicator is moving upward. No one’s complaining about this kind of good news as the year 2011 soon comes to a close.  All positive statistics are worth noting.

Buyers as well as Sellers should pay close attention to these indicators.  While trends are showing signs of a recovery, it’s a great time to take the next step to home ownership or listing your home for sale.  Call to schedule an appointment.

I would like to thank Peter W. Hendershot, State Licensed Real Estate Appraiser, Business Development Manager, Affinity Valuation Group for putting this chart together for all of us to analyze.  This data is shared with your local REALTORs, lenders, builders and lawyers so we can assist our clients and keep them informed of market conditions.

Milan, Michigan Real Estate Trending Upward

To take advantage of a buying opportunity and look for all the Ann Arbor real estate deals.

Looking for Ann Arbor area foreclosures?

We know about homes before they hit the market, just call or email us as to what you need.

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We know  the latest Ann Arbor Area Real Estate MARKET trends.

Foreclosures Down as Good News Continues in Washtenaw County, MI

Press Release

Washtenaw County’s recorded foreclosures are down more than 23 percent from last year.

According to Lawrence Kestenbaum, Washtenaw County’s Clerk and Register of Deeds, 79 Sheriff’s Deeds were recorded by Washtenaw County’s Register of Deeds office this October.

“In 2011 to date we have recorded a total of 964 Sheriff’s Deeds, compared to 979 and 1,256 in 2009 and 2010, respectively. This year’s total to date is 76.8 percent of last year’s total to date, and continues as the lowest annual count we’ve recorded since 2007.”

An updated table showing monthly recording for 2002 through October, 2011 is presented below.

Click here to find the best foreclosure deals!

 

Overall the Ann Arbor Market Sold Price Per Square Feet Trends Steady in April 2011

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Ann Arbor median price per square feet is trending steady at just under $140 per square foot. The median sold prices of all Ann Arbor Real Estate areas compared to February ’10 are up 9.5 percent, and asking prices are up 5 percent. Ann Arbor Real Estate is stabilizing and with the current low interest rates and incredible real estate values. To find out more about Ann Arbor Real Estate Market Statistics for all of Ann Arbor, continue reading.

The market is broken down into areas by the Ann Arbor Area Board of Realtors with a map below and insight into each neighborhood and school area is provided.

Let’s begin with a snapshot of all of Ann Arbor.

Bottom line, the Ann Arbor market is stabilizing. Downward pressure is exerted by foreclosures and short sales. Again Ann Arbor homes are affordable, choices are abundant and low interest rate financing is available.

We all want to know when the market will turn around, so we are tracking the Ann Arbor Real Estate Market activity monthly. Pete Hendershot of Affinity Valuation Group, LLC says, the market bottomed. For your Ann Arbor Area home value, click here.

Ann Arbor Board of Realtors organizes our data by search areas by boundaries and schools as pictured. We do a ton of business with people who are relocating to Ann Arbor, usually coming to work for University of Michigan. Many have never been here. It’s always our pleasure to help others discover this gorgeous city and to show the different areas of Ann Arbor, each having a different feel. It’s important to find the place that feels like home to you. For last month’s data, see Ann Arbor Area Real Estate Statistics Charted Last Month.

Neighborhoods are unique so you knowing up to date Ann Arbor Real Estate information about specific areas and trends could be helpful. The Ann Arbor Board breaks down our Ann Arbor Real Estate into the areas in the map found at the end of the reports.

There are 473 Ann Arbor homes for sale in all of Ann Arbor with bedrooms ranging from 1 to 11 and baths from 1 to 31 with list prices ranging from $59,000 to $2,950,000. Homes sizes range from 468 to 10,000 square feet.

There are 908 sold Ann Arbor homes over the last 12 months with bedrooms ranging from 1 to 8 and baths from 1 to 7 with list prices ranging from $18,760 to $2,400,000 and sold prices from $18,000 to $2,400,000. Average sold price is $292,267 and average sold price per square foot is at $140.29. List price to sold price is 96%.

As far as Ann Arbor market statistics go, the number of houses for sale this February compared to last year are down 29 percent and sold homes are up 53.3 percent. The trend line confirms shrinking inventory.

Median prices of those homes for sale are up 5 percent and those sold are up 9.5 percent when comparing this February to last year. The gap between the asking prices and sold prices is narrowing per the trend lines, showing that the market is becoming more stable.

Search Area 81 North West Ann Arbor is boarded on the East side by US 23 and to the south I 94.

There are 51 Ann Arbor homes for sale in area 81 with bedrooms ranging from 2 to 6 and baths from 1 to 5 with list prices ranging from $149,900 to $2,950,000. Homes sizes range from 1,041 to 10,000 square feet.

The chart shows the trend line of average sold price per square foot is trending about straight across at $155  per square feet over the last 12 months partly due to the tax credits and increased number of foreclosure deals.

There are 57 sold Ann Arbor homes over the last 12 months in area 81 with bedrooms ranging from 2 to 6 and baths from 1 to 6 with list prices ranging from $49,900 to $2,400,000 and sold prices from $47,000 to $2,400,000. Average sold price is $514,129 and average sold price per square foot is at $161.12. List price to sold price is 94%.

The supply chart shows the number of homes for sale compared to February ’10 to February ’11 is up 12.8 percent.


The Ann Arbor median price of homes in this area listed for sale has gone up 21.1 percent – February ’10 to February ’11.

Schools are Abbott, Wines or Haisley elementary schools and Forsythe Middle School and Skyline High School. For database on Washtenaw Schools, click on highlighted link.

Search Area 82 Westside of Ann Arbor South of M14 and Main Street is the boundary on the East side.

There are 104 up from 79 active homes for sale with bedrooms ranging from 1 to 7 and baths from 1 to 5. The size of homes for sale range in square feet from 468 to 7,500. List prices range from $79,900 to $1,195,000 and average list price per square feet is $165.22.

There are 261 sold Ann Arbor homes the last 12 months in area 82 with bedrooms ranging from 1 to 6 and baths from 1 to 5 with list prices ranging from $56,900 to $895,000 and sold prices from $40,000 to $895,000. Average sold price is $235,604 and average sold price per square feet is $146.07, down from last month. The average sold price per list price is 97 percent.

 

The chart shows the trend line of average sold price per square foot is trending slightly down from $144 to around $139 per square feet over the last 12 months.

The supply chart shows the number of homes for sale compared to February ’10 to February ’11 is down 43.9 percent and the number of homes sold is down by 27.3 percent.

The supply chart shows the number of homes for sale compared to last February ’10 to February ’11 is up 22.6 percent and the number of homes sold is down 34.5 percent.

This Ann Arbor area 82 includes desirable west side of Ann Arbor. Schools are Bach, Eberwhite or Haisley for elementary school; Slauson or Forsythe for middle school (depends on location) and usually Pioneer High School.

Search Area 83 Ann Arbor Southwest Liberty to Main Street.


There are 74 (down from 70) active Ann Arbor homes in area 83 for sale ranging from $159,900 to $700,000 and average list price per square feet of $151.53, up from last month.

There are 153 sold Ann Arbor homes in the last 12 months in area 83 with bedrooms ranging from 2 to 6 and baths from 1 to 4 with list prices ranging from $79,900 to $799,900 and sold prices from $75,000 to $730,000. Average sold price is $297,244 and average sold price per square feet is $136.23 and the average sold price per list price is at 96 percent.

The chart shows the trend line of average sold price per square foot is on the incline from $135 to around $140 per square feet over the last 12 months.

The chart below shows compared from February ’10 to February ’11 that the number of homes for sale are down 39 percent and the number of homes sold are up by 550 percent.

The median price of homes listed for sale is up 1.5 percent and sold prices is up 8.6 percent – February ’10 to February ’11.

Elementary schools are Lawton, Bryant-Pattengill and Lakewood and the middle school is either Slauson or Tappan, along with Pioneer High School. This area is on the lower left South West quadrant of the map below.

Search Area 84 Ann Arbor Briarwood to North Stadium

There are 32 active Ann Arbor homes for sale in area 84 by Briarwood to North Stadium ranging from $80,000 to $514,900 and average list price per square feet of $123.15.

The chart shows the trend line of average sold price per square foot has sharply decreased from just over $120 to $114 per square feet over the last 12 months.

There are 69 sold homes over the last 12 months in area 84 with bedrooms ranging from 2 to 5 and baths from 1 to 3 with list prices ranging from $18,760 to $400,000. Sold prices range from $18,000 to $385,000. Average sold price is $171,670 and average sold price per square feet is $125.97 with the average sold price per list price at 96 percent.

The number of homes for sale in February ’10 is down by 39.6 percent and the number of sold homes in February ’11 report was unchanged. Inventory is declining over the last 12 months.

Median price of homes for sale is up 1.5 percent and median sold price remains unchanged compared to February last year.

Schools are Bryant-Pattengill and Allen for elementary and Tappan or Scarlett for Middle schools and Pioneer or Huron for the high school. This area is the purple area in the middle of the map below.

Search Area 85 Ann Arbor Scarlett and East Pittsfield, bordering Ypsilanti school district as the Eastern border.

There are 83 (vs. 70 last month) active Ann Arbor homes for sale in area 85 ranging from $60,000 to $325,900 and average list price per square feet of $105.90. The size of the homes range from 652 to 3,024 square feet.

There are 123 homes sold in the last 12 months in area 85 with bedrooms ranging from 1 to 5 and baths from 1 to 4. Sold prices range from $24,900 to $245,000. Average sold price is $143,602 down from $245,000 and average sold price per square feet is $92.68 with the average sold price per list price at 95 percent.

The chart shows the trend line of average sold price per square foot is on the incline and sitting around $93 per square feet at the end of April.

The number of homes for sale compared to February of last year is down 9.1 percent and the number of homes sold compared to February ’10 is up by 66.7 percent. The number of homes on the market is down.

Median price of homes for sale is down .3 percent and median price of sold is down 8.3 percent compared to February last year.

The schools are Pittsfield, Carpenter, Allen or Mitchell for elementary school and Tappan or Scarlett for middle school, along with Huron High. This area of schools – Pittsfield, Carpenter, Allen, Mitchell, Tappan, Scarlett, and Huron is the green section in the lower right quadrant of the map below.

Area 86 Ann Arbor East Geddes and Huron River Drive, North Eastern section of the Ann Arbor schools including Superior township.

There are 57 (vs. 49 last month) active Ann Arbor homes for sale in area 86 ranging from $184,000 to $2,900,000 and average list price per square feet of $223.79 and average list price of $763,759. The homes range in bedrooms from 3 to 6 and baths from 1 to 6. The size of home for sale range from 1,200 square feet to 7,596 square feet.

There are 99 sold Ann Arbor homes in area 86 this year with bedrooms ranging from 2 to 8 and baths from 1 to 7 with list prices ranging from $199,900 to $2,072,500 and sold prices from $210,000 to $2,072,500. Average sold price is $550,141, the average sold price per square feet is $185.31 with the average sold price per list price at 95 percent.

The chart shows the trend line of average sold price per square foot is quickly rising from $150 to around $185 per square feet over the last 24 months.

The number of homes for sale are down by 24.7 percent compared to February of last year and the number of homes sold are up 20 percent.

Median price of houses for sale is up 7.3 percent and sold prices are up 51.5 percent.

Schools are Allen, Thurston, King, Burns Park, Angell elementary schools. Tappan or Clague are the middle schools, along with Huron High School. This are is aqua on the East side of Ann Arbor.

Search Area 87 North East Ann Arbor and North Campus, walking distance to UM Medical Center, goes East to Dixboro.

There are 41 (vs. 47 last month) North East Ann Arbor homes for sale ranging from $59,000 to $1,195,000 and average list price per square feet of $145.10 and average list price of $363,216. The homes range in size from 720 square feet to 6,053 square feet with bedrooms from 1 to 6 and baths from 1 to 4.

There are 91 (vs. 86 last month) sold Ann Arbor homes in North East Ann Arbor over the last 12 months with bedrooms ranging from 2 to 5 and baths from 1 to 4 with list prices ranging from $75,000 to $1,100,000. Sold prices range from $65,000 to $970,000. Average sold price is $263,756 and average sold price per square feet is $140.01 with the average sold price per list price at 95 percent. The sold homes range in square feet from 888 to 5,221 square feet.

The chart shows the trend line of average sold price per square foot is trending down from $130 to around $125 per square feet over the last 24 months.

The number of homes for sale are down by 39.7 percent compared to February of last year and the number of homes sold are up 75 percent.

Median price of houses for sale is down 3.4 percent and price of sold homes is also down 73.6 percent over last year.

Schools are Northside, Thurston or Logan for elementary schools, Clague for Middle and Huron High or Skyline depending on location. This is the North East Ann Arbor upper right purple map quadrant.

Search Area 88 Ann Arbor Downtown/Burns Park, south of the University and walkable neighborhood.

There are 31 (vs. 27 last month) active Ann Arbor homes in area Burns Park for sale ranging from $159,900 to $2,100,000 and average list price of $513,835 and list price per square feet of $237.68. The homes offered for sale range in size from 702 square feet to 6,058 square feet.

There are 55 (vs. 51 last month) sold Ann Arbor homes in Burns Park this year with bedrooms ranging from 2 to 6 and baths from 1 to 5 with list prices ranging from $159,900 to $899,000. Sold prices range from $136,000 to $820,000. Average sold price is $384,143. Average sold price per square feet is $208.87 and the average sold price per list price is now at 96 percent.

The chart shows the trend line of average sold price per square foot is basically trending steady at $200 per square feet over the last 12 months.

The number of homes for sale are down by 2.8 percent compared to February of last year and the number of homes sold are up 66.7 percent.

Median price of homes for sale compared to February of last year is down 13.4 percent and sold price of homes is down 10.4 percent.

Schools are Eberwhite, Bach and usually Burns Park for elementary schools. The middle schools are Tappan and Slauson depending on location, along with Pioneer High School. Burn Park is in the center of the map.

Chelsea Real Estate Statistics

Dexter Real Estate Statistics

Saline Real Estate Statistics

Map areas for the MLS below.

map

Ann Arbor Real Estate, Kathy Toth & Team is excited to offer you FREE automated email information on the Market Value of your Washtenaw County home.This will help you learn your home’s up-to-date market value, complete with comparable properties in the Ann Arbor, Michigan area, including addresses, selling prices and photos. Cutting edge internet system that emails directly to you! It’s FREE, Simple and Dependable. No Obligation! JUST FILL IN THE FORM.

Speak with Kathy’s Team today to find out what your Ann Arbor home is worth! Experience red carpet treatment by calling us at (734) 669-0337 or emailing us at [email protected], Keller Williams Ann Arbor Market Center.

September Ann Arbor Real Estate Podcast – Top Transaction Strategies for Fall 2011!

Ann Arbor Real Estate Podcast for September 2011:

This month’s edition covers Ann Arbor real estate market activity and then we’ll talk about the top transaction strategies for fall 2011.

Features special guest Terri Murphy of US Learning.

Related Posts

Saline Real Estate Market Update – July
Monthly Sheriff Deeds for Washtenaw County Down
Foreclosure and Bank Owned Trends for 8/26/11 in Ann Arbor Area
How Long Does it Take to Close a home in Ann Arbor?

Click here to search all Ann Arbor Area Michigan homes and condos with pictures and tours – FREE

Kathy Toth and Team
www.KathyToth.com

Keller Williams Realty