Northern Michigan Real Estate Blog

Forbes names Charlevoix one of America's Prettiest Towns

2011-04-27T18:50:00.000-04:00

Forbes.com has named Charlevoix the Beautiful as one of the 11 most beautiful spots in the United States. I'm sure this is no surprise to anyone who has visited Charlevoix in all of its petunia-lined street splendor. Nestled on the shores of Lake Michigan, Round Lake and Lake Charlevoix, Charlevoix is truly gorgeous. My favorite activity by far in Charlevoix is boating. With the newly renovated state of the art marina facility, staffed by wonderful HarborMaster Hal Evans and staff, beautiful East Park with its bandshell and fountains, Charlevoix is a gem!

Northern Michigan Regional Hospital Number 1

2011-04-27T18:35:00.000-04:00

Congratulations, Northern Michigan Regional Hospital, on being named Number One in the Nation for unparalleled medical excellence and patient safety for Vascular Surgery! The Northern Michigan Regional Hospital Heart & Vascular Center opened in May of 2004, and since that time has established an outstanding reputation. With state-of-the-art diagnosis and comprehensive treatment of blood vessel, artery, and vein disorders including blockages, closures, and clots, patients have access to innovative vascular surgery procedures that produce the best outcomes in the nation. What a tremendous honor and asset to our community! Congratulations!

Petoskey Real Estate Sales - 1st Quarter 2011

2011-04-27T18:13:00.000-04:00

Petoskey Real Estate Market Showing Signs of Stability

Perhaps contrary to some claims you may have read in local real estate ads, the Petoskey real estate market in the first quarter of 2011 showed little change year over year from the first quarter of 2010. This is good news, however, as the federal first-time and repeat home buyer tax credits, which expired on April 30, 2010, significantly inflated the 2010 numbers. Simply holding its own, absent Uncle Sam's fiscal largesse, can be seen as a victory for the Petoskey real estate market in the first quarter of 2011.

The number of single family residences (including Petoskey homes and condominiums) sold in the Petoskey School District in the quarter increased by one unit, from 46 in 2010 to 47 in 2011. The total dollar volume from sales of Petoskey homes and condominiums in the quarter decreased slightly, however, from $10.1 million in 2010 to $9.8 million in 2011.

The median Petoskey home price declined from $165,600 in the First Quarter of 2010 to $145,000 in the First Quarter of 2011. The average home price also declined slightly, from $219,102 in the First Quarter of 2010 to $207,824 in the First Quarter of 2011.

Northern Michigan Property Tax Appeals

2011-03-01T20:43:00.000-05:00

Have you received your 2011 Northern Michigan property tax assessment notice? Does your property tax assessment reflect the fact that your property's value may have declined significantly over the past few years? If not, you may wish to appeal your property tax assessment to your local board of review.

The taxable value of real property for a given tax year is determined as of December 31 of the previous year. In February, local tax assessors mail notices of assessment to taxpayers. Click here for instructions on how to read your Northern Michigan property tax assessment notice. Assessment notices must be mailed to taxpayers at least ten days before the March board of review. If you purchased your property in December, and have not received a notice of assessment, the prior owner may have received the notice of assessment. Contact your assessor prior to the March board of review for a copy of the assessment.

Local Boards of Review usually begin to hear tax apeals on the second Monday in March. An appeal to the local Board of Review is generally required to file an appeal with the Michigan Tax Tribunal. Click here for helpful tips on appealing your Northern Michigan property tax assessment to your local Board of Review.

Oftentimes, a taxpayer will hire an attorney to handle their Northern Michigan property tax appeal to the Board of Review. If the Board of Review does not rule favorably, the attorney can also represent the taxpayer in subsequent appeal to the Michigan Tax Tribunal. My firm, the Law Office of Stefan J. Scholl, P.C., has successfully represented taxpayers in Northern Michigan property tax appeals. Please feel free to contact my law office for assistance with your property tax appeal.

Click here for the 2011 Michigan Taxpayers Guide.

October is Breast Cancer Awareness Month

2009-10-01T09:43:00.003-04:00

Thank you to the Traverse City Record Eagle for bringing us this potentially life-saving information!

Petoskey Real Estate Sales Collapse

2009-07-07T17:55:00.003-04:00

The Petoskey real estate market appears to have collapsed in the first half of 2009, following a relatively strong first half the previous year. The latest sales numbers are abysmal. One can only wonder if these latest numbers signal a market capitulation or bottom, or whether things can actually get worse from here.

The number of Petoskey homes and condominiums sold during the first half of 2009 was down only 22%, from 120 units in 2008 to 94 units in 2009. I only have unit sales data from 2002 forward, and 94 units is the smallest number in the first half of any year in the last eight years. That is the good news.

However, the dollar volume of 1st half residential sales in the Petoskey School District tanked, from $47,001,605 in 2008 to $16,510,876 in 2009, a decrease of almost 65%! This dollar volume is the lowest number recorded since 2001, which is oldest dollar volume data I have available for a first half, when $24.6 million in residential sales was reported.

The average sale price for a Petoskey home during the first half of 2009 plummeted to $175,648 from $391,680 during the first half of 2008. Perhaps more importantly, the median sales price decreased significantly, from $180,500 in 2008 to $138,000 in 2009, a decline of 23.5% year over year, and a full 30% decline from what appears to have been the market peak median sales price of $197,090 for the full year 2005.

Of the 94 Petoskey homes and condominiums sold during the first half of 2009, it appears as though at least 41, or 43.6% of the sales, were bank owned foreclosures. I know that at least some of the remaining 53 sales were short sales, where the bank accepted less than what was owed on the mortgage to avoid foreclosure proceedings. I think that I am being conservative in my estimation that a majority of the sales during the first half of 2009, or over 50% of the sales, were either bank owned foreclosures or short sales. This is truly an astonishing number. Foreclosure sales are having a significant negative impact upon Petoskey property values and it is unclear at this time if the end to the foreclosure boom is in sight.

Note: Based upon sales information obtained from the Northern Michigan Multiple Listing Service for the period from January 1, 2009 through June 30, 2009.

Petoskey - Great Town of America

2009-03-10T13:06:00.003-04:00

Petoskey has once again been honored as one of the "100 Best Getaways for a Vacation or a Lifetime" in "The Great Towns of America Revisited" authored by David and Joan Vokac.

The Vokacs describe Petoskey as "a classic among genteel Midwestern towns," and also observe that "The Great Lakes timeless appeal, the natural beauty and winter recreation prospects of surrounding hills, and Petoskey's original heritage remain intact."

Petoskey was included in the original 1998 edition of Great Towns, along with Traverse City, Holland and Charlevoix. Holland and Charlevoix have been replaced in the new edition.

Congratulations Petoskey! Please feel free to contact us if you would like to learn more about Petoskey real estate, and why Petoskey is such a great place to live and vacation. We would love to hear from you.

National Rails-To-Trails Conservancy Recognizes Little Traverse Wheelway

2009-02-05T10:29:00.005-05:00

The Little Traverse Wheelway was recognized by the national Rails-To-Trails Conservancy as its Trail of the Month for January, 2009. Stretching approximately 25 miles along the shoreline of Little Traverse Bay, from Charlevoix through Petoskey and on to Harbor Springs, this gem provides abundant year-round recreational opportunities for residents and visitors alike. A big thank you and congratulations to the Top of Michigan Trails Council, and its many volunteers and supporters, which has been instrumental in the development of the Little Traverse Wheelway!

Federal First-Time Homebuyer Tax Credit

2009-01-19T09:45:00.004-05:00

In addition to much lower housing prices and historically low interest rates, first-time homebuyers who are considering the purchase of a Northern Michigan home can take advantage of a federal tax credit for a limited time. The credit:

• Applies to home purchases after April 8, 2008, and before July 1, 2009.
• Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.

The credit operates much like an interest-free loan because it must be repaid in equal installments over a 15-year period. Taxpayers will claim the credit on new IRS Form 5405, First-Time Homebuyer Credit.

Only the purchase of a main home located in the United States qualifies. Vacation homes and rental property are not eligible. For a home that you construct, the purchase date is the first date you occupy the home.

Taxpayers who owned a main home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home in the three years prior to a purchase can qualify for the credit.

If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. If you make an eligible purchase in 2009, you can choose to claim the credit on either your original or amended 2008 return, or on your 2009 return.

The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly. The limit is $3,750 for a married person filing a separate return. In most cases, the maximum credit will be available for homes costing $75,000 or more. The credit normally must be repaid over a 15-year period starting the second year after the year the credit is claimed.

The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income. In general, for a married couple filing a joint return the phase-out begins at $150,000 and is completely phased out at $170,000. For other taxpayers, the phase-out range is between $75,000 and $95,000.

Not everyone will qualify for the credit. There are other rules that may impact your eligibility and decision to claim the First-Time Homebuyer Credit. Get additional information at the IRS First-Time Homebuyer Credit Information Center or contact your tax professional for advice.

November Northern Michigan Real Estate Sales Horrible

2008-12-05T16:13:00.003-05:00

Horrible Northern Michigan real estate sales numbers for the month of November, 2008 seem to mirror the macroeconomic climate. Today the Labor Department reported that U.S. nonfarm payrolls fell by over half a million last month, the worst such tally in 34 years. Who can buy a home if they don't have a job?

Sales of single family homes and condominiums in the Petoskey, Harbor Springs, Charlevoix and Boyne City real estate markets were down year over year, with 43 sales in November of 2008 compared to 50 sales in November of 2007. Total sales by dollar volume decreased by a whopping 50%, from just under $20 million ($19,990,790) in November of 2007 to just over $10 million ($10,048,450) in November of 2008. The dollar volume of Petoskey sales was only a third of what it was last year, from just under $10,350,000 in November, 2007 to $3.6 million this year.

The median home price declined from $227,100 in November of 2007 to $158,500 in November of 2008, a decline of over 30% year over year. The average days on market for homes which sold during the month of November of 2008 decreased to 210 days, from 269 days in November of 2007.

Sales of bank owned properties almost doubled, from seven to thirteen. Bank owned properties accounted for over 30% of sales during the month of November, 2008, continuing to put pressure on prices in our marketplace.

This report is based upon sales information obtained from the Northern Michigan Multiple Listing Service for the months of November, 2007 and November, 2008.

Northern Michigan Real Estate Market Conditions - October 2008

2008-11-14T18:47:00.001-05:00

Sales of single family homes and condominiums in the Petoskey, Harbor Springs, Charlevoix and Boyne City real estate markets were down year over year, with 58 sales in October of 2008 compared to 64 sales in October of 2007. Total sales by dollar volume decreased from $23,832,500 in October of 2007 to $17,551,855 in October of 2008, a decline of over 26%. The dollar volume of Petoskey home sales alone declined almost three million dollars, or over 36%, from just under $8 million last year to just over $5 million this year.

The median home price declined from $224,500 in October of 2007 to $212,500 in October of 2008, a decline of just over 5% year over year. The average days on market for homes which sold during the month of October of 2008 increased to 222 days, from 185 days in October of 2007.

Sales of bank owned properties more than tripled, from five to eighteen. Bank owned properties accounted for almost one in three sales during the month of October, 2008 continuing to put pressure on prices.

This report is based upon sales information obtained from the Northern Michigan Multiple Listing Service for the months of October 2007 and October 2008.

Fannie Mae Guidelines for Short Sellers

2008-11-12T15:35:00.004-05:00

I often receive calls from Northern Michigan homeowners who are looking for advice as to how to proceed when they are no longer able to make their house payments. Fannie Mae has released updated underwriting guidelines which will apply to new mortgage loans sought by individuals with various types of prior credit problems. These guidelines certainly may impact the decisions made by these homeowners who are trying to decide how to deal with their present situation.

Potential borrowers with a foreclosure on their credit record must wait 5 years to be considered for new funding, and are subject to additional credit and down payment requirements for 5 to 7 years. This is an increase from the previous 4 year waiting period. Bankruptcies (other than Chapter 13) require a 4 year waiting period from either the discharge or dismissal date, while Chapter 13s require only a two year waiting period from the discharge date or 4 years from the dismissal date. In the case of multiple bankruptcies, the waiting period is extended to 5 years. The waiting period for Deed-in-lieu-of-foreclosures is unchanged at 4 years, with additional requirements for 4 to 7 years. The biggest change is the implementation of a mandatory two year waiting period from the completion date of any preforeclosure or short sale. The shortened waiting period for short sale sellers will certainly make short sales a more attractive option for homeowners over the alternatives.

I always advise people who need help to seek the advice of not only competent mortgage and real estate professionals, but also to consult with a real estate attorney before taking any action which they may later regret.

Mappable Searching - Northern Michigan MLS

2008-10-29T17:27:00.004-04:00

Buyer's Broker of Northern Michigan, LLC is pleased to announce the addition of new interactive mapping capabilities when searching the Northern Michigan MLS for homes. Now you can do a map search for Petoskey, Michigan homes for sale, or show the location of homes meeting your desired search parameters on a map. I have had a number of clients ask for a mappable search feature on my MLS search page, and am happy to provide it for you. Enjoy!

What Qualifies as a Principal Residence?

2008-09-24T12:56:00.004-04:00

This is probably one of the most frequently asked questions I encounter.

A "principal residence" is defined by section 7dd(c) of the Michigan General Property Tax Act,MCL 211.7dd(c), as follows:

"Principal residence" means the 1 place where an owner of the property has his or her true, fixed, and permanent home to which, whenever absent, he or she intends to return and that shall continue as a principal residence until another principal residence is established.

Not very legalistic, is it? Your principle residence is the the one true home you return to whenever you are away. If you can prove that your property serves as your principle residence, then you may be entitled to a personal residence exemption which would exempt you from property taxes levied by a local school district for operating purposes.

Michigan Property Transfer Tax Relief

2008-09-24T12:39:00.004-04:00

Attorney General Mike Cox has issued an opinion which should afford some Michigan home sellers a certain measure of relief in this difficult real estate environment of declining market values.

The Attorney General's opinion deals with an obscure provision in the General Property Tax Act, MCL 207.526(t), which exempts from a seller from paying state transfer tax provided the following requirements are met:

(a) The property must have been occupied as a principal residence, classified as exempt from taxes for school operating purposes under MCL 211.7cc;

(b) The property's SEV for the calendar year in which the transfer is made must be less than or equal to the property's SEV for the calendar year in which the transferor acquired the property; and

(c) The property cannot be transferred for a consideration exceeding its true cash value for the year of transfer.

In his opinion, the Attorney General provides hypothetical examples to help illustrate how the exemption is to be applied under commonly arising factual scenarios. The examples assume that a husband and wife purchased or acquired real property in 2006, occupied the property as their principal residence, and conveyed the parcel to another person in 2008.

EXAMPLE 1:

SEV when acquired in 2006 = $74,000.00.

SEV when transferred in 2008 = $72,000.00.

TCV in 2008 = $144,000.00.

Transfer or sale price in 2008 = $140,000.00.

OUTCOME: This transfer qualifies for exemption from the state real estate transfer tax because the SEV for 2008, the year of sale, is less than the SEV for 2006, the year of acquisition, and the sale price does not exceed the true cash value.

EXAMPLE 2:

SEV when acquired in 2006 = $74,000.00.

SEV when transferred in 2008 = $72,000.00.

TCV in 2008 = $144,000.00.

Transfer or sale price in 2008 = $148,000.00.

OUTCOME: This transfer is not exempt under MCL 207.526(t) because the sale price exceeds the true cash value for 2008, the year of sale.

EXAMPLE 3:

SEV when acquired in 2006 = $74,000.

SEV when sold in 2008 = $75,000.

OUTCOME: This transfer, regardless of the sale price, is not exempt under MCL 207.526(t) because the SEV for 2008, the year of sale, exceeds the SEV for 2006, the year of acquisition.

How much money could this save you? The state transfer tax is $3.75 for each $500.00or fraction of $500.00 of the total value of the interests in real property being transferred. MCL 207.525. (This equates to approximately ¾ of 1% of the value of the property.)

Michigan Property Tax Relief

2008-09-24T12:14:00.003-04:00

If you have purchased a new home in Michigan and are still sitting on another Michigan home which you cannot sell in this market, you may be able take advantage of legislation passed earlier this year. Under the new law, a seller can retain an additional personal residence exemption (previously knows as the homestead exemption) for up to three years on property previously exempt as the owner's principal residence if the property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. Property qualifying for a personal residence exemption is exempt from the 18 mill tax levied by local school districts for school operating purposes.
MCL 211.7cc

Has the Real Estate Market Hit Bottom?

2008-09-12T13:54:00.005-04:00

This intriguing question is the headline of Petoskey News Review Reporter Steve Zucker's recent article on the Northern Michigan real estate market.

While I wouldn't presume to know the answer to this question, some statistics I researched for this story show the extent to which our real estate market has weakened over the past several years.

Almost thirty percent of sales involving single family homes in the Petoskey, Harbor Springs, Boyne City and Charlevoix school districts from January 1, 2008 through September 1, 2008 were bank owned foreclosures. The number of foreclosure sales this year is up almost 500% from the same period in 2006, just two short years ago.

For the months of January through August of this year, there were 359 unit sales of homes and condominiums in the Petoskey, Harbor Springs, Boyne City and Charlevoix real estate markets, with the dollar volume of sales totalling $114,417,285, and a median sales price of $170,000.

While we may not know whether we have reached the bottom, it looks like our most recent residential market top was in 2004. From January through August of 2004, there were 536 unit sales of homes and condominiums in the Petoskey, Harbor Springs, Boyne City and Charlevoix real estate markets, with the dollar volume of sales totalling $150,604,789, and a median sales price of $192,200.

Comparing this year's sales numbers with 2004, our unit sales volume is down over 33%, our dollar volume of sales is down almost 25%, and our median sales price is down almost 12%.

According to some industry observers, subprime mortgage delinquencies appear to have peaked in December of 2007, and subprime mortgage foreclosure starts may have peaked in January of 2008. This could indicate that the flood of bank owned properties into our market may soon be nearing a peak. However, there is concern that we have not yet reached a peak in Alt-A mortgage delinquencies.

I don't beleive that we will see a meaningful improvement in our local real estate market until the overhang of bank owned properties works its way through the system, which is currently in progress. However, with so much bad news already behind us, I am cautiously optimistic that we are beginning to see some light at the end of the tunnel. Hopefully it isn't a freight train!

Petoskey Real Estate Sales 1st Half 2008

2008-07-09T22:50:00.001-04:00

Petoskey residential real estate sales volume actually increased year over year in the first half of 2008, from 106 unit sales of homes and condos in the first half of 2007 to 120 unit sales in the first half of 2008.

In addition to a 13% increase in unit volume, the dollar volume of 1st half residential sales in the Petoskey School District increased significantly from $34,064,331 in 2007 to $47,001,605 in 2008, an increase of almost 38%.

The average sale price for a Petoskey home during the first half of 2008 was $391,680, compared to $318,358 during the first half of 2007, while the median sales price decreased slightly, from $183,000 in 2007 to $180,500 in 2008. Days on the market for those properties which sold during the first half of the year increased significantly, from 179 days on market in 2007 to 277 days on market in 2008.

Happy 4th of July!

2008-07-04T09:29:00.003-04:00

It looks like we will have Chamber of Commerce weather here in Northern Michigan for the 4th of July! What a great day to go to a parade, barbeque with family and friends, watch the fireworks and celebrate America's 232nd birthday. Happy 4th of July everyone!

NAEBA Establishes New HQ in Phoenix

2008-04-17T10:11:00.005-04:00

I am very proud to serve on the Board of Directors of the National Association of Exclusive Buyer Agents (NAEBA). NAEBA is a very unique pro-consumer association composed of real estate licensees who represent homebuyers exclusively. Because NAEBA members do not list property for sale or represent sellers, they can pledge to assist their buyer clients in finding the right property at the best price possible, without potential conflicts of interest.

There have been some very big positive developments at NAEBA recently. NAEBA has hired a full-time Executive Director, Kimberly Kahl, a Certified Association Executive, who most recently served as Executive Director of the Arizona Masonry Contractor's Association. NAEBA has also opened a new Headquarters Office in Avondale, Arizona, a suburb of Phoenix, and just a stone's throw from the Glendale and the site of this year's superbowl.

Kim is doing an absolutely phenomenal job for NAEBA, and we as an association are very lucky to have her. NAEBA is poised for strong growth and great things in the future. Keep up the good work NAEBA!

Photos: NAEBA's new Executive Director, Kim Kahl, with 2007-08 President Barry Nystedt at NAEBA's new Headquarters Offices (top); NAEBA's 2007-08 Board in front of NAEBA's new Headquarters in Avondale, Arizona (above).

Foreclosure Sales Carry the Day

2008-03-28T12:32:00.007-04:00

Wow, talk about a sign of the times. When I logged into our MLS system last night to look at the day's sales activity, I found that four of the five recorded sales for the day were bank owned property. That was truly astounding for me, bringing home the fact that foreclosure sales are one of the driving forces in today's Northern Michigan real estate marketplace.

Most of these Northern Michigan foreclosure sales are properties which are selling below the median home price, which varies by community, but which is around $176,000 so far this year for Emmet County as a whole.

Here is a snapshot of the foreclosure sales which were recorded yesterday, March 27, 2008.

8844 Luce Street, Oden
Sales Price - $40,000

846 Deer Run Court, Boyne City
Sales Price - $160,000

1212 Clarion Avenue, Petoskey
Sales Price - $135,000

6928 Milton Road, Alanson
Sales Price - $75,500

Note: Photos courtesy of Northern Michigan MLS.

Petoskey Pointe Extension Granted

2008-02-18T17:00:00.003-05:00

The Petoskey City Council recently voted 4-1 to extend a deadline for "substantial completion" of the Petoskey Pointe Project from early November of 2008 to December 31, 2009. The deadline is part of an agreement between the City and Lake Street Petoskey Associates, the Farmington Hills developer of the Project. According to published reports in the Petoskey News Review, work on the hotel/retail/condominium project stalled last year after National City Bank withdrew its financing. The Developer requested an extension of the deadline in December of 2007, indicating that new financing arrangements involving overseas funds were close to being finalized. To provide protection for the City, the resolution approved by the City Council calls for financing to be demonstrated and construction on the project to resume by March 15th.

Who Is Your Buyer Agent Representing?

2008-01-28T15:39:00.000-05:00

The case of a California couple who are suing their real estate agent because they feel they overpaid for their home in 2004 has ignited a firestorm within the real estate community. The N.Y. Times featured the case in a recent article, and the Today Show ran a segment on the suit. Amazingly, according to NAR, this is the first known case where a buyer's agent has been sued by a buyer over valuation issues.

According to the article in the Times, Marty and Vernon Ummel purchased a home in 2005 using the services of Mike Little, a veteran agent with Re/Max Associates. The Ummels claim that Mr. Ummel, who was also working as a mortgage broker, encouraged them to obtain their loan through him. The suit charges that the Ummels requested a copy of the appraisal ordered by Mr. Little prior to the closing, but that it was not provided to them until after they moved into the home.

The Ummels apparently realized something was amiss when they got a flier from another real estate agent in August of 2005, a few days after they moved into their home, which showed that a house up the street had just sold for $105,000 less than theirs, even though it was the same size. When they finally got their appraisal, they learned that the house up the street was not only cheaper, but that it also had a pool. In early October of that same year, they learned from a separate flier that yet another similar sized home on the same street closed the same day as theirs but sold for $175,000 less.

The Ummels accuse Mr. Little not only of withholding information, but of exaggerating the value of the house to push them into a deal. In her deposition, Mrs. Ummel testified that Mr. Little had told them "many times that it was a very good buy."

In an interview with the Times, Mr. Little called the case "ridiculous,", adding: "The lady's a nut job. I didn't do anything wrong." He blamed the suit on a declining market. "When people see their home values and assets declining, they always feel there's someone to blame," he said. "This is a dangerous time for all of us in the industry," Mr. Little remarked.

The mortgage broker, and the appraiser, who was accused of skewing his report to make the Ummel's house seem worth the purchase price, have both settled out of court. The case against Mr. Little and Re/Max Associates is scheduled to go to trial on Monday, January 28th in San Diego County.

If Mr Little did indeed fail to disclose the appraisal/prior sale information to his clients in order to save the deal, and his reported $30,000 commission, he has almost certainly breached his fiduciary duties to his clients as their buyer's agent (if he was in fact acting in that capacity, as there was no signed buyer agency agreement). The duty of an agent to disclose material information to their client is well-recognized. It is difficult for me to imagine a scenario where a recent comparable sale just up the street of which an agent has actual knowledge would not be considered to be material. If an agent has knowledge of any information which may influence their client's decision whether or not to purchase, that information is material and should be disclosed.

The fact that Mr. Little was also acting as the Ummels' loan originator is also of concern. Buyer agents must be cognizant of any relationship which could potentially pose a conflict of interest between the agent's duty of loyalty to their client and their own financial interests. A number of agents commenting on this case have repeated the old adage that "pigs get fat and hogs get slaughtered." Greed, and the viewing of a client as a profit center, rather than as a principal, can easily lead to legal liability for breach of one's fiduciary duties.

Undoubtedly, there have been a number of instances in recent years where buyer agents have not fulfilled their fiduciary obligations to their clients. Up until now, soaring property values have masked many of these shortcomings. With property values now in freefall, one can expect that buyer agents who have failed to fulfill their fiduciary duties to their clients will be called to task.

Petoskey, Michigan - Terrific Retirement Town

2008-01-16T09:33:00.000-05:00

Petoskey, Michigan is being featured along with seven other towns in the January/February 2008 issue of Where to Retire magazine, in an article entitled "8 Terrific Low-Tax Towns."

The article notes that ". . . in Petoskey, the skiing, sailing and scenery attract many retirees who also enjoy upscale dining options, a charming downtown with boutique shopping and a reasonable cost of living." The article explains that the yearly local tax burden on a hypothetical retired couple with an annual income of $60,000 and a home value of $225,000 would be $4,084.00 This amount would be even lower for a home located outside the city limits. Resort and Bear Creek Townships, for instance, both have lower property tax rates than those in the city proper.

Other terrific low-tax towns featured include Easton, Maryland, Oxford, Mississippi, Gainesville, Georgia, Fairhope, Alabama, Staunton, Virginia, Ashland, Oregon and Kalispell, Montana. Once again Petoskey finds itself in great company! If you are considering places to retire, make sure you come see why everyone is raving about Petoskey. The natural beauty of the area is unsurpassed, we have abundant recreational and cultural opportunities, we are a very safe community with an excellent quality of life, we have a first class regional medical center, and it is an affordable place to live. What more could you ask for?

Harbor Springs Real Estate Market Posts Weakest Numbers in Recent History

2008-01-14T12:33:00.000-05:00

Harbor Springs real estate market activity plummeted in 2007, with unit sales and total dollar volume of single family residential transactions posting lows not seen since at least prior to 2001, the last year for which sales statistics are available through the Northern Michigan Multiple Listing Service's computerized database.

There were 118 sales of Harbor Springs homes and Harbor Springs condominiums in 2007, defined as sales of properties located within the Harbor Springs School District. The total dollar volume of those sales was $50,296,695. This compares with 147 sales last year, and a record total dollar volume of $64,669,046. Unit sales volume was off almost 20% from 2006 to 2007, while total dollar volume was off almost 23%.

The total dollar volume of sales was the lowest in recent history. The next lowest total was posted in 2001, the last year for which computerized data is available. In 2001, there were 188 sales with a total dollar volume of $52,825,456. Sales in 2001 were impacted by the terrorist attacks on 9/11/2001.

On a brighter note, the median sales price declined only modestly to $261,500, from $267,500 in 2006 and $269,000 in 2005. The median sales price in 2001 was $225,000.

Note: Based on information from the Northern Michigan Multiple Listing Service for the period from January 1, 2001 - December 31, 2007.

Grand Traverse County Construction Spending Down

2008-01-14T12:15:00.000-05:00

The Traverse City Record Eagle is reporting that construction spending in Grand Traverse County slumped to $152.6 million in 2007, the lowest amount in more than seven years.

The article also paints a bleak picture for 2008. A representative from Traverse City based Comstock Construction Co. indicates that their business was "pretty static" from 2006 to 2007, but that they are down approximately fifty percent from a record year for construction in 2004. Comstock Construction Co.'s workforce has shrunk from 140 emplyees a few years ago to 60 workers last year.

Petoskey Real Estate Market Year End Report

2008-01-07T15:13:00.000-05:00

Not surprisingly, Petoskey residential real estate sales volume decreased in 2007 from 2006. Unit sales of homes and condominiums in the Petoskey School District decreased to 255 units from 282 units, a decline of over 9%. Sales by dollar volume also fell, from $98,896,350 in 2006 to $82,476,049 in 2007, a decline of more than 16%.

Despite the decline in sales activity for Petoskey homes and condominiums, the median Petoskey home price actually increased by just under 1%, from $188,500 in 2006 to $190,000 in 2007. Average days on market was almost unchanged, from 200 days in 2006 to 199 days in 2007 for those homes which sold. The average price paid for a Petoskey home dropped from $350,696 in 2006 to $323,435 in 2007.

Note: Based on information obtained from the Northern Michigan Multiple Listing Service for the period from January 1, 2006 - December 31, 2007.

Petoskey Commercial Real Estate Projects Abound

2007-12-11T08:57:00.000-05:00

Area planners have been working overtime considering a number of approvals which are being sought for new commercial real estate projects in the Petoskey area.

Walgreens would apparently like to build a new store on Petoskey's north side, at the site currently occupied by Kentucky Fried Chicken and the old Schelde's restaurant. Oleson's is reportedly seeking approval to construct a new store on U.S. 31 North across from Dave Kring Chevrolet - Cadillac. JoAnn Fabrics is looking to relocate from their current location in the Glen's North Plaza to Bear Creek Plaza (near the Petoskey Cinema and Home Depot, and an MC Sporting Goods is supposedly planning to locate there as well). Perhaps the biggest of all these planned developments is a proposed Meijer superstore on U.S. 131 just South of the former Victories Casino site. Now that is a lot of activity for one month in Petoskey, wouldn't you say?

If you are interested in purchasing a piece of commercial property in Northern Michigan, feel free to contact us. We would be happy to discuss the value added services we provide to our Northern Michigan commercial real estate clients. Stefan Scholl, Associate Broker, is also a Michigan licensed attorney practicing in the areas of residential and commercial real estate. We have represented clients statewide in the purchase of commercial real estate, and offer our commercial real estate clients generous commission rebates to be applied to their legal fees. Buyer's Broker of Northern Michigan, LLC can be reached toll free at (877) 228-9664 or (877) 2 BUY NMI. We look forward to the opportunity to be of service.

Petoskey Homes - October Swoon

2007-11-07T12:01:00.000-05:00

There is blood in the streets! There is carnage in our local real estate market! If you are a buyer, this could be a great thing! Sorry all you sellers, this is not good news for you. If you don't need to sell right now, just disregard this blog and check back to see how the market is doing in a year or two.

In October of 2007, twenty-four single family residences (homes and condominiums) sold, compared to thirty-three sales in October of 2006, a decline of over 27%. Total dollar volume of sales in October of 2007 was $7,715,200, compared to $10,749,375 in October of 2006, a decline of over 28% year to year. The median home price fell from $199,900 to $188,450, a decline of almost 6%.

As of November 7, 2007, there are 569 Petoskey homes for sale (including condominiums) in the Petoskey School District. With twenty-four sales last month, the monthly absorption rate is 4.2% of available inventory. We currently have just under a two year supply of homes on the market!

In my opinion, this is great news for real estate buyers and investors. Although it may be impossible to predict a bottom, these difficult market conditions are producing a number of attractive buying opportunities right now. Are you a bargain shopper? This may be a good time to start looking, if you are possibly interested in purchasing a Northern Michigan property.

I am putting my money where my mouth is. I recently cashed in on some stock market gains and just purchased a commercial condominium unit. I am also preparing to write an offer on a vacant lot for my own investment portfolio. I am trying to follow the sagest investment advice ever given--buy low and sell high.

If you are interested in learning more about investing in the Northern Michigan real estate market, please feel free to give us a call toll free at (877) 228-9664. We look forward to the opportunity to be of service.

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Northern Michigan Regional Hospital

2007-11-06T18:21:00.000-05:00

Northern Michigan Hospital has a new name, Northern Michigan Regional Hospital. And a new logo! Pretty snazzy.

We are so blessed to have such a wonderful regional referral hospital in our community, and such a kind and caring professional staff.

If you are considering an employment opportunity with Northern Michigan Regional Hospital, we would be happy to chat with you regarding local housing opportunities, the Northern Michigan real estate market, area neighborhoods and schools, etc., without obligation.

As mentioned in Medical Economics magazine, "a buyer's agent can help you negotiate the best deal possible by providing a comparative market analysis, recommending appropriate professional inspections, giving you information about the area that the seller's agent isn't required to disclose, and reviewing the settlement statement and other relevant documents. Generally, you don't pay for this guidance. Instead the buyer's agent splits the commission paid by the seller to the listing agent."

Our company specializes in relocation and buyer agency. We don't list properties for sale or represent sellers. We are completely, 100% loyal to our buyer clients and their interests. As local experts, we can save you money and offer you peace of mind when relocating to the area. If you are a transferee unfamiliar with the Petoskey area, we will give you all the facts about a particular home or location, both good and bad. A listing agent may not be as willing to offer information that might prove detrimental to a sale, because he or she works for the seller. Their duty is to sell the property they have listed. On the other hand, an exclusive buyer agent only represents buyers and does not have listings. We can provide our clients the objective information they need to make the right decision regarding a home or property.

According to Diversion Magazine for Physicians, "A 1992 study found that 200 relocating workers who used buyer brokers paid an average of 91% of the offering price, whereas those using traditional brokers paid 96%.

If you are considering accepting a position with Northern Michigan Regional Hospital, please give us a call toll free at 877-228-9664. We would be pleased to share our knowledge of the area and the Northern Michigan real estate market with you. We have successfully represented a number of Northern Michigan Regional Hospital transferees, and look forward to the opportunity to be of service.

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Northern Michigan Regional Hospital is our pot of gold at the end of the rainbow!

Petoskey Real Estate Market Slides in Third Quarter

2007-10-01T09:33:00.000-04:00

The Petoskey real estate market took it on the chin in the Third Quarter of 2007, with both sales and sale prices of Petoskey homes and condominiums broadly lower compared to 2006.

The number of single family residence sold in the Petoskey School District in the quarter declined 13%, from 85 in 2006 to 74 in 2007. The total dollar volume from sales of Petoskey condominiums and homes in the quarter sank over 24%, from over $30 million in 2006 to $22.8 million in 2007. The median home price declined precipitously, from $237,000 in the Third Quarter of 2006 to $187,225 in the Third Quarter of 2007, a decline of over 21%.

The declines in the third quarter reflect the weakness in both the state and local economies. In addition to weak demand, increased inventory and the rising number of foreclosures are taking their toll on prices. The figures point to the fact that this is a strong buyer's market. If you are in the market for a Petoskey home or Petoskey real estate, now may be a good time to consider either purchasing or trading up, if you are one of the lucky few in a position to do so.

Storm Sinks Boat at Petoskey Marina

2007-09-12T13:00:00.000-04:00

It was a stormy 9/11 in Petoskey, with strong winds and intermittent rain squalls pushing down from the North. Casualties from the storm at the Petoskey City Marina included this seventeen foot Aquasport powerboat, which partially sunk in its slip. When checking on my boat this morning, I found Petoskey Harbormaster Chris Flynn overlooking the scene, with the partially submerged boat suspended precariously from its remaining strained docklines.

Chris reported that the marina staff was on hand until approximately 1:00 a.m checking on boats during the storm. The Aquasport must have sunk sometime in the early morning hours. It was unclear whether the boat was swamped by a wave or perhaps filled with rainwater and overturned. The NOAA weather buoy in Northern Lake Michigan, Station 450002 , reported sustained winds of 31.1 knots from 5:50 p.m. through 7:50 p.m., with a maximum gust of 40.8 knots. That was all it took to shred the headsail shown at the right. What a blustery day and night it was here in Northern Michigan. Fortunately, this is probably as close to a hurricane as we will ever get.

Desperate Times for Sellers?

2007-08-24T12:45:00.000-04:00

MarketWatch Reporter Amy Hoak has written an interesting article about home sellers utilizing unconventional tactics to sell their homes. In addition to the time honored tradition of burying statues of St. Joseph (1-888-BURY-JOE), many are resorting to feng shui practitioners to make their homes seem more appealing to buyers.

Although I believe that both approaches have merit, there is no substitute for pricing your home right if you are seriously interested in selling. As soon as sellers can embrace the concept of current fair market value, their home will sell.

Petoskey Real Estate Market Report - 1st Half 2007

2007-07-14T14:47:00.000-04:00

Note: Based upon information obtained from the Northern Michigan Multiple Listing Service for the Periods of Time from January - June, 2001-2007.
Copyright 2007 - Buyer's Broker of Northern Michigan, LLC

Petoskey Real Estate Market Report - 1st Half 2007

2007-07-14T14:32:00.000-04:00

Petoskey News Review vs. Traverse City Record Eagle

2007-07-12T17:45:00.000-04:00

"Groundwork to start soon" - Front Page Headline,
Petoskey News Review, July 6-8, 2007 Weekender Edition

"Work on project halted while financing is sought" - Headline, Traverse City Record Eagle, July 11, 2007 Web Edition

So who are we to believe? The News Review, citing the developer as its source, or the Record Eagle, which cites both the general contractor, JM Olson Corp., and construction liens filed with the Emmet County Register of Deeds?

According to the News Review article, the developer "dismissed recent rumors suggesting that Petoskey Pointe wouldn't come together as planned."

According to the Record Eagle article by Brian McGillivary, Petoskey Pointe Construction is on hold because the developers haven't paid bills totaling more than $2.1 million. Additionally, the article notes that three firms, including the general contractor, have filed liens on 13 parcels owned by the project developers. When contacted by the Record Eagle, Petoskey Pointe development partner Martin Jankowski indicated that "we actually have our loan now, a gap loan, and we've got everything straightened out.”

Stay tuned. . .

Exclusive Buyer Agents Touted in Newsweek

2007-07-09T10:10:00.000-04:00

Home buyers really do need the help of a buyer's agent in a buyer's market, according to a recent article "Real Estate: Call Your Agent," by Linda Stern, which appears in the July 16, 2007 edition of Newsweek.

The author cites a couple of reasons why those working without an agent may lose out. Without an agent to search the MLS on their behalf, house hunters may be missing out on properties which may be of interest. Also, by utilizing an agent who is working on their behalf, home buyers may get a better deal.

The author does not suggest using just any buyer's agent, instead recommending that home buyers seek out the services of an exclusive buyer agent who is a member of the National Association of Exclusive Buyer Agents. Stephen Brobeck, of the Consumer Federation of America, warns that agents whose firms also list properties for sale may steer clients to company listings first, which Brobeck calls "an irreconcilable conflict of interest".

At Buyer's Broker of Northern Michigan, LLC, we are true exclusive buyer agents. We are members of the National Association of Exclusive Buyer Agents and do not list properties for sale or represent sellers. We are completely loyal to our buyer clients. We are committed to protecting our clients' best interests and negotiating the best possible deal on their behalf.

If you are in the market for a Northern Michigan home or vacation property, experience the difference an exclusive buyer agent can make! Find out what Newsweek, Consumer Reports, Kiplinger's Personal Finance, etc. are talking about when they recommend that home buyer's use an exclusive buyer agent. Give us a call toll free at (877) 228-9664 or (877) 2 BUY NMI. We look forward to the opportunity to be of service!

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Petoskey Featured in "101 Best Outdoor Towns"

2007-06-26T09:33:00.000-04:00

Petoskey is an ideal place for lovers of the outdoors, as recently confirmed by former Men's Journal editors Sarah Tuff and Greg Melville, who feature Petoskey in their recently released book, "101 Best Outdoor Towns."

In a nod to our "million dollar" sunsets, the authors state that "The Caribbean has nothing over the view from town as the sun extinguishes into Lake Michigan behind the creamsicle horizon." Looking for a romantic getaway? Pair the gorgeous sunsets along with "the back-in-time feel of the artsy downtown Gaslight District, the long beach walks and the views of Little Traverse Bay from the top of sandy Old Baldy, and you've got one of the most romantic spots in the Midwest."

Speaking of outdoor options, the authors point to the Little Traverse Wheelway bicycle path, the North Country Scenic Trail and the Petoskey State Park for hiking, fishing, swimming and paddling on area lakes and rivers, and downhill and cross country skiing at area resorts and trails. Our area has so much to offer outdoor enthusiasts. Petoskey's recognition as one of the "101 Best Outdoor Towns" is well deserved.

Things to Consider When Buying a Vacation Home

2007-06-11T16:51:00.001-04:00

Amy Hoak, a personal finance writer at Marketwatch.com has written an interesting article for those considering the purchase of a vacaton home, entitled "Summer Lovin'."

The article has great tips and information for those considering the purchase of a second home. However, as a real estate attorney and broker who specializes in representing vacation home buyers, I have to comment on one suggestion offered in the article. Instead of a vacation home buyer looking for an agent who specializes in selling vacation homes, I would suggest they contact an agent who specializes in representing vacation home buyers. What a concept!

This is an issue pertaining to the broader real estate market as well. I believe that educated real estate consumers, when given a choice, will turn to someone whom they can trust to represent their interests when purchasing a property, as opposed to the sellers' interests.

Exclusive buyer agents, those who represent only homebuyers, and never sellers, have been recommended recently by Consumer Reports and Kiplinger's Personal Finance. To learn more about exclusive buyer agency, feel free to give us a call or drop us a line. We would be happy to help you find and get a great deal on a wonderful Northern Michigan vacation property.

All That Jazz at Harbor - Ribbon Cutting

2007-05-24T23:30:00.000-04:00

It was a gorgeous day in Harbor Springs for a ribbon cutting, as All That Jazz at harbor, owned by Nikolai Hargreaves, officially opened for business. Numerous well wishers and local dignitaries took part in the event, including Harbor Springs Chamber Executive Director Kathy Lott.

The concept of All That Jazz at harbor is "things that wrap." The store carries wraps "for fashion, warmth or just for fun," including throws, shawls, scarves and more, much more. There are picnic blanket/tote bags, "bearskin" rugs and teddy bears to wrap you in hugs. Candles and potpourri are available to wrap a room with warmth. Zulugrass jewelry, crafted by the Maasai women of Kenya, which helps to provide economic opportunity for the Maasai families, can be worn either singly or in multiple strands as a necklace, bracelet, ankle bracelet, belt, hair wrap, hat band, napkin ring, as a wine bottle topper, etc. Fragrances which wrap the senses, including Beanpod Candles made from soybeans, which are clean and healthy for the environment, and Greenleaf fragrances, including potpourri, room spray, sachet, candles, lotion, hand soap & sanitizer, shower gel and decorative diffusers and replenishment oils, are proudly offered.

What a great store! I bought my wife a vanilla scented Beanpod candle and some pink Zulugrass jewelry and she loved them both! (Big hint for all you guys out there, your wives/girlfriends love to receive gifts). :-)

Buyer's Broker of Northern Michigan, LLC was pleased to assist Nikolai with the purchase of her new commercial condominium unit, with assistance from the Law Office of Stefan J. Scholl, P.C.

Congratulations on your new store, Nikolai! What a wonderful new addition to beautiful downtown Harbor Springs. We wish you much success!

Odawa Casino Resort to Open Soon

2007-05-23T14:47:00.000-04:00

According to the Petoskey News Review, the Odawa Casino Resort in Petoskey, which is owned by the Little Traverse Bay Bands of Odawa Indians of Michigan, is set to open on Wednesday, June 20, with a formal grand opening scheduled for July 25th.

The Odawa Casino Resort in Petoskey will feature casino gaming to include 1,500 slot machines, 30 table games and six poker tables, a nightclub/sports bar, and an events center with seating for 1000. Dining options will include include a steakhouse, buffet and coffee shop.

Barry Milligan, the manager of Victories Casino, which will be replaced by the new Odawa Casino Resort, told the News Review, "It’s much more in line with a first class resort hotel than a casino. It’s along the lines of the Bellagio."

The casino will reportedly employ nearly 1,000 people, with 500 new jobs created. While I tried to get some pre-opening photos for our loyal readers, I was rebuffed by the casino's marketing department. Oh well, at least I tried.

Harbor Springs Summer Event Schedule

2007-05-21T12:03:00.000-04:00

Make sure you mark your calendars for these wonderful Harbor Springs community events.

Harbor Springs Waterfront Wine Festival: June 15th
Independence Day (July 4th): Art Fair (10:00 A.M. to 5:00 P.M.); Parade (1:00 P.M.); Fireworks (Dusk)
Harbor Springs Women’s Club Art Fair: July 11th
Blissfest Music Festival: July 13-15
4th Annual North American Indian Art Fair: July 21st
LTYC Regatta: July 27-29
Labor Day Community Appreciation/Sidewalk Sales Event: September 3rd

Crooked River Lock in Alanson Repaired

2007-05-16T12:06:00.000-04:00

Great News! The Crooked River Lock in Alanson, which connects Pickerel and Crooked Lakes with the rest of the Inland Waterway, has been temporarily repaired, and is now open for the season. The Traverse City Record Eagle is reporting that the daily passage fee has gone up from $4 to $6, and the season pass price has increased from $30 to $45, to help defray the cost of the temporary repairs. The Crooked River Lock is owned by the U.S. Army Corps of Engineers and operated by the Michigan Department of Natural Resources. Hopefully the U.S. Army Corps of Engineers will completely overhaul the lock in the near future to ensure its continued operation, but in the meantime, this is great news for both area boaters, and for the local businesses who depend on navigation between Crooked and Pickerel Lakes and the rest of the Inland Waterway for their livelihoods.

Petoskey Schools Athletic Facilities Proposal Defeated

2007-05-10T12:08:00.000-04:00

Voters in the Petoskey School District resoundingly defeated a $15 million bond proposal to construct a new school athletic complex by a margin of 2,457 - 1473.

I was actually quite surprised late last year when the school district released the results of a survey showing that the public would support funding such a proposal, given the current state of our state and local economies. Apparently my skepticism of the survey data was warranted.

The Traverse City Record Eagle ran a story on the defeat, pointing to the weak economy as a major contributing factor to the outcome. I would have to agree with their assessments. The fact that we have lost a number of local employers recently has people concerned. In trying times like these, people are hesitant to commit to spending money on anything which is not deemed to be absolutely essential. The voters apparently saw this proposal as a luxury which cannot be afforded at this time.

Petoskey Featured in Midwest Living

2007-04-27T08:52:00.000-04:00

The editors of Midwest Living 2007 have named Petoskey to their Best of the Midwest in the category of "Getaway Towns." According to the editors, their favorite "small town escapes include all the ingredients for perfect weekends: pretty settings, memorable lodgings and restaurants, plus plenty to see and do."

Petoskey is rightfully described as a "shoppers' and artists' mecca." Featured in the article are the sunsets at Bayfront Park, the Gaslight Shopping District, the Little Traverse History Museum, Bay View, Ward & Eis Gallery, Grandpa Shorters, Gaslight Gallery, Andante, City Park Grill, Jesperson's, and Stafford's Perry Hotel and Bay View Inn.

Other favorite getaway towns include Bayfield, Wisconsin, Galena, Illinois, Hermann, Missouri, Lanesboro, Minnesota, Lindsborg, Kansas and Marshall, Michigan.

Congratulations, Petoskey on being featured in Midwest Living's Best of the Midwest!

Petoskey Real Estate Sales Steady in 1st Quarter

2007-04-27T00:04:00.000-04:00

Despite the seemingly poor state and local economies, sales of Petoskey homes and real estate continued to chug along in the 1st Quarter of 2007. The number of residential sales, including both Petoskey homes and condominiums, dropped only slightly in the 1st Quarter, from 49 sales in 2006 to 47 sales in 2007. This compares to only 40 sales in the 1st Quarter of 2005 and 53 sales in the 1st Quarter of 2004.

While unit sales volume was down only slightly, the total dollar volume of residential sales was down 13%, from $17.07 million in the 1st Quarter of 2006 to $14.86 million in the 1st Quarter of this year. Despite being down from last year's numbers, this Quarter's total dollar volume far exceeded the $9.43 million posted in the 1st Quarter of 2005, and also exceeded the $13.35 million posted in the 1st Quarter of 2004.

On a bright note, the median sales price of a Petoskey home rebounded to $180,000 in the 1st Quarter, up 11% from the $162,000 median sales price in the 1st Quarter of 2006. This compares to a median sales price of $183,750 in the 1st Quarter of 2005, and $180,000 in the 1st Quarter of 2004.

Note: Based upon information obtained from the Northern Michigan Multiple Listing Service for the periods from January 1 - March 31, 2004-07.

Copyright 2007 - Buyer's Broker of Northern Michigan, LLC

Charlevoix Marina Project Moves Forward

2007-03-29T09:10:00.000-04:00

The Charlevoix Marina reconstruction project is moving forward, with the marina portion of the project expected to be completed by Memorial Day weekend. The floating docks are not expected to have working water and electricity until fall, however. The East Park portion of the project, including the performance pavilion and the harbormaster building, will not be completed until this fall. The bandshell, and the old harbormaster and chamber of commerce buildings, have been razed.

Kiplinger's Highlights Exclusive Buyer Agents

2007-03-14T17:58:00.000-04:00

Exclusive buyer agents are highlighted in the latest edition of Kiplinger's Personal Finance. According to the article, "Unlike traditional agents, EBAs don't work for listing brokers, so they avoid the risk of dual agency -- when one broker represents both parties. EBAs are still paid by the seller, but they can promise to represent your interests exclusively throughout the transaction and help you negotiate the lowest price."

The mainstream media finally seems to be catching on to the idea of exclusive buyer agency. Consumer Reports featured exclusive buyer agents, and the National Association of Exclusive Buyer Agents, in its May, 2005 edition. Exclusive buyer agency has also been mentioned in numerous additional publications recently, including the Wall Street Journal.

Boyne City Real Estate - 2006 Market Statistics

2007-03-01T14:53:00.000-05:00

Boyne City residential real estate sales volume plummeted in 2006 from the prior year, as did both the median and average home price. Unit sales of homes and condominiums in the Boyne City School District declined almost 20%, from 137 units in 2005 to 110 units in 2006. Sales by dollar volume decreased to $26,201,917 in 2006, from $36,906,222 in 2005, a whopping decline of almost 30%.

The median Boyne City home price dropped significantly in 2006 to $127,750, from $163,900 in the prior year. The average home price declined by 12%, from $269,388 in 2005 to $238,199 in 2006. Of those homes which did sell, the average days on market (DOM) increased significantly, from 149 DOM in 2005 to 200 DOM in 2006.

Note: Based on information obtained from the Northern Michigan Multiple Listing Service for the period from January 1, 2005 - December 31, 2006.

Charlevoix Real Estate and Homes - 2006 Sales Summary

2007-02-28T17:17:00.000-05:00

Charlevoix residential real estate sales volume declined significantly in 2006 from 2005. Unit sales of homes and condominiums in the Charlevoix School District decreased 17.5%, from 166 units in 2005 to 137 units in 2006. Sales by dollar volume decreased to $40,002,030 in 2006, from $44,830,895 in 2005, a decrease of 10.8%.

The median Charlevoix home price dropped by 2.2%, from $180,000 to $176,000. Of those homes which sold, the average days on market decreased slightly to 225 days in 2006, from 228 days in 2005, while the average home price actually increased from $270,066 in 2005 to $291,986 in 2006.

Note: Based on information obtained from the Northern Michigan Multiple Listing Service for the period from January 1, 2005 - December 31, 2006.

Birchwood Approves $5 Million Clubhouse Renovation

2007-02-26T18:13:00.000-05:00

The Birchwood Farms Property Owners Association recently approved a $5 Million dollar plan to renovate the Clubhouse at Birchwood Farms Golf & Country Club. The renovation, which was approved by an overwhelming majority of the members, will add 6,600 square feet of new space and significantly modify, redecorate and refurnish the existing Clubhouse. After the renovation, the Clubhouse will total 31,600 square feet.

Project architect Ken Evangelista is a widely respected specialist in country club planning and design. His 35 years of architectural experience includes projects at renowned golf courses such as Oakland Hills Country Club, Bloomfield Hills Country Club, and Orchard Lake Country Club.

The renovation plans include a new casual bar/grill, a new fitness center and exterior modifications to give the Clubhouse a “sophisticated Up North” look and feel. In addition to the Clubhouse renovation, two additional hydro grid clay tennis courts will be constructed in the spring of 2007, which will bring the Club total to six clay and four hard courts.

According to Bill Donohue, Publisher of "Club & Resort Business", “Birchwood is to be complimented on their willingness to maintain and build their club experience by investing in the future of this fabulous facility. The new improvements will make the clubhouse a destination and enhance the community. As a member for 26-years, I applaud the members for making a sound, gutsy decision that will only enhance the Birchwood experience for years to come.”

Birchwood Farms is a 1,600-acre year-round resort community with 27 holes of championship golf. It is surrounded by natural woodlands and unspoiled lake views. Birchwood members come from almost all of the 50 States, with many from Florida, Arizona, Texas, Ohio, Indiana, Illinois and other areas of Michigan. Touted as being one of “Michigan’s Best Kept Secrets”, Birchwood was established in 1972.

Petoskey Real Estate and Homes - 2006 Sales Summary

2007-02-23T12:44:00.000-05:00

Petoskey residential real estate sales volume actually increased in 2006 from 2005. Unit sales of homes and condominiums in the Petoskey School District increased to 282 units from 273 units, an improvement of approximately 3.3%. Sales by dollar volume increased to $98,806,750 in 2006 from $80,207,165 in 2005, an increase of 23.1%.

Despite the increase in sales activity, the median Petoskey home price dropped by 4.5%, from $197,090 to $188,500. Of those homes which sold, the average days on market increased to 200 days in 2006 from 190 days in 2005. The average price of a home increased significantly, from $293,799 in 2005 to $350,379 in 2006.

Note: Based on information obtained from the Northern Michigan Multiple Listing Service for the period from January 1, 2005 - December 31, 2006.

Petoskey Pointe - The Big Dig

2007-01-09T01:06:00.000-05:00

Here is a photo I took on Friday morning showing the progress being made on the Petoskey Pointe project. Unseasonably warm weather in Petoskey so far this winter has meant very favorable conditions for excavation and construction of the foundation. An underground parking structure is planned for the site.

Think Twice About Prepaying Your Mortgage

2007-01-05T08:11:00.000-05:00

Don't rush to pay off your low interest, tax-deductible mortgage, according to a recent study entitled "The Tradeoff Between Mortgage Prepayments and Tax-Deferred Retirement Savings," which was authored by Clemens Sialm of the University of Michigan's Ross School of Business, Gene Amromin of the Federal Reserve Bank of Chicago and Jennifer Huang of the University of Texas at Austin. According to the study, at least 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice, a mistake which is costing U.S. households about 1.5 billion dollars per year.

As interest on a home mortgage is generally deductible, a mortgage with a 6% interest rate will only cost a taxpayer in the 25% tax bracket 4.5% in after tax dollars. Rather than paying off a mortgage which is only costing 4.5%, one could make tax deferred contributions to a 401(K) or IRA, resulting in additional tax savings. Assuming an average 8% annual return on funds invested in retirement accounts, it is easy to see that funds used to pre-pay a mortgage would be more wisely invested in retirement accounts.

Petoskey Favors New Football Stadium?

2006-12-13T13:27:00.000-05:00

According to an article in today's Petoskey News Review, Petoskey School District voters are supportive of a new millage to develop and operate $15 million worth of new school sports facilities. This according to Lansing-based polling firm EPIC-MRA, which surveyed 300 district residents from Nov. 11-14, and found that a majority of those surveyed (57%) supported the idea.

School officials are apparently considering new football, track and soccer facilities at the south end of the Petoskey High School/Petoskey Middle School complex. The proposed new taxes would cost the owner of a $200,000 home roughly $79/year.

I found these survey results to be quite surprising, given the current weakness in our local economy. So I thought it would be interesting to conduct my own survey. (I have been looking for an excuse to have a survey for a while now). So here's your big chance! Please click on the link below to complete the survey.

Petoskey Schools' Sports Facilities Improvement Proposal Survey

Northern Michigan Hospital Cancer Center

2006-12-12T07:50:00.000-05:00

Northern Michigan Hospital Cancer Center
Northern Michigan Hospital (NMH) in Petoskey has been at the forefront in the fight against cancer since the 1970's, when NMH added medical oncology/hematology and radiation oncology to its team of experts. In the past 30 years, NMH has diagnosed and treated more than 25,000 cancer patients, providing the region with some of the latest in specialty cancer care and clinical research.

In 2005, the American College of Surgeons Commission on Cancer once again accredited NMH as a Comprehensive Community Cancer Center with commendation, one of only twelve programs in the state to receive that designation. The NMH Cancer Committee, led by NMH Cancer Program Director and oncologist Dr. Ervin Hire, has created four teams of experts who will focus on four kinds of cancers that affect the majority of patients in our region: colorectal, lung, breast and prostate cancers. Each team will study the most effective diagnostic approaches and treatment options, to create guidelines for incorporating the latest advances.

Thanks to NMH, all of us who live in the area can rest assured that we have experts to turn to if and when our lives our touched by cancer.

Journey To Bethlehem

2006-12-08T10:44:00.000-05:00

After hearing about the live nativity play put on by the Stutsmanville Chapel for a number of years, I finally had the opportunity to attend with my family. We were not disappointed. The production, entitled "Journey to Bethlehem", involved six separate scenes, which I will describe as "The Visitation", "The Census", "No Room at the Inn", "Hark the Herald Angels Sing", "The Three Wise Men", and "The Nativity".

And despite the blizzard-like weather, what a performance it was, both indoors and out, involving a cast of close to a hundred people, not including various livestock and animals including dogs, cats, chickens, horses and sheep. "Journey to Bethlehem" runs from Thursday through Sunday, December 8th-10th. Please call Stutsmanville Chapel in advance for reservations at (231) 526-2335. Stutsmanville Chapel is located approximately five miles North of Harbor Springs on the Northwest Corner of State and Stutsmanville Roads.

NAR's Antitrust Problems--The Tip of the Iceberg?

2006-11-30T01:21:00.000-05:00

After reading Judge Mark Filip's opinion denying the National Ass'n of Realtors' (NAR's) motion for summary disposition in the U.S. Department of Justice's (DOJ's) antitrust case against NAR, I am left to wonder, is the Court's recent ruling only the tip of the iceberg when it comes to NAR's current antitrust problems?

I found the government's allegations of anticompetitive behavior to be quite interesting. The government has cited as evidence in its case a Cendant white paper asserting that it was "not feasible" for traditional brokerages to compete with large internet companies that operated or affiliated with brokers operating VOWs (Virtual Office Websites). The DOJ also cited public comments by the chairman of Re/Max expressing concern that VOW brokers would place downward pressure on brokers' commission rates. The U.S. further alleged that the head of NAR's working group on the VOW regulations argued that the new rules were needed because VOW brokers were "scooping up market share just below the radar."

The opt-out provisions contained in both NAR's initial VOW Policy and modified ILD (Internet Listing Display) Policy, along with an anti-referral provision, form the crux of the government's case. The initial VOW Policy contained opt-out provisions forbidding any broker in the MLS from sharing a listing with their customers over the internet without the permission of the listing broker. The Court noted that listing brokers were given the opportunity to choose from either a blanket opt-out (directing that their clients' listings not be displayed on any VOW), or a selective opt-out (directing that their clients' listings not be displayed on a particular targeted competing broker's or brokers' VOW(s)).

Now for the smoking guns. According to the United States, the working group that formulated NAR's initial VOW policy understood that the opt-out rights were fundamentally anticompetitive and harmful to consumers. Two members of the working group wrote that the opt-out right would be "abused beyond belief," with traditional brokers selectively withholding listings from particular VOW-based competitors, as they previously had been unable to do. The DOJ also asserts that the chairman of the working group also admitted that the opt-out right was likely to be exercised by brokers notwithstanding that "it may not be in the seller's best interest to opt out." The chairman, however, "took comfort in the fact that the rule did not require brokers to disclose to clients that their listings would be withheld from some prospective purchasers as a result of the brokers' opt-out decision, thus providing brokers 'flexibility without conversation'."

NAR attempted to have the government's claims that its initial VOW Policy violated antitrust law thrown out, on the basis that the initial VOW Policy, which was slated to go into effect on January 1, 2006, and which had already been adopted by approximately 200 local boards, was subsequently rescinded by NAR, in favor of the modified ILD Policy. The modified ILD policy does not contain the particularly offensive selective opt-out provision that was in the initial VOW policy. However it does contain a blanket opt-out provision which allows brokers to direct that their clients' listings not be displayed on any competitor's website, provided that the broker opting out does not display any competitor's listings on its own website, if it has one. The Court took notice of the fact that when exercised, this blanket opt-out would prevent a VOW broker from providing over the internet the same MLS information that can be provided in person, or through any non-internet technology, without restriction. The Court also noted that the blanket opt-out did not apply to NAR's own website, Realtor.com.

The DOJ has alleged that the NAR, by adopting the initial VOW Policy and the modified ILD Policy, violated the Sherman Act. More specifically, it is alleged that these policies constitute a contract, combination, or conspiracy by and between NAR and its members which unreasonably restrains competition in brokerage service markets throughout the U.S. to the detriment of American consumers. The United States further alleges that this combination or conspiracy has had and will continue to have anticompetitive effects in the market for residential real estate services by suppressing technological innovation, reducing competition on price and quality, raising barriers to entry, and restricting efficient cooperation among brokers, thereby making express or tacit collusion more likely.

In its motion for summary disposition, NAR argued that there is no case or controversy with respect to the intial VOW Policy because it rescinded that Policy before the DOJ's lawsuit was filed. Not only was the Court unswayed by NAR's arguments, noting that the government has alleged sufficient continuing adverse effects of the initial VOW Policy to warrant the granting of injunctive relief, the Court also ominously warned that if the DOJ's allegations are proven, the equitable remedies which may be imposed by the Court "can go beyond the prohibition of those practices which, strictly speaking, were found to constitute the illegal conduct."

The Court seems to have a very firm grasp on the complex issues involved in the case, especially as they relate to the potential harm caused to consumers. According to attorney Robert D. Butters, who was quoted by Inman News, "This judge clearly gets it. He understands how VOWs operate and the potential they have for making the marketing process far more efficient and consumer-friendly. He clearly comprehends that."

There are several aspects of the Court's opinion which I find to be of particular interest. One of NAR's core arguments against government regulation has been its continual assertion that the MLS is not a "public utility", and that MLS listings are the property of member listing brokers, who should be entitled to regulate the dissemination of those listings as they see fit. Not only was the MLS as public utility argument completely missing from its 29 page opinion, the Court continually refers to MLS listings in its Opinion as "clients' listings." I think that this is significant.

Additionally, the Court appears to be receptive to looking at the harm NAR's policies have caused not only to general public, but to those clients whose listings have been withheld by their brokers by means of either selective or blanket opt-out, without the clients' knowledge or consent. Ah yes, "flexibility without conversation", what a concept!

As an exclusive buyer agent, either the selective and/or the blanket opt-outs could potentially be the death knell of my business model. There were and continue to be brokers in my local MLS who have exercised blanket opt-outs with respect to the display of their clients' listings on my website, and that of other MLS participants, through NAR's Internet Data Exchange (IDX) Policy. In my opinion, these blanket opt-outs are harmful to competing brokers and to sellers, who generally haven't a clue that their listings are not being publicly disseminated on the websites of other MLS participants.

From what I can gather, this case is only just now getting started, and its ramifications will most likely be far-reaching. With this decision, I feel that NAR's prospects of maintaining the status quo have all but evaporated. I believe that this case (and more than likely even this Opinion), will in all likelihood accelerate the changes and innovations which we have been seeing in the marketplace, resulting in a transformation of the real estate industry as we know it. As far as NAR's antitrust problems go, this decision may just be the tip of the iceberg.

Nubs Nob Terrain Park Ranked #1 in the Nation

2006-11-27T15:15:00.000-05:00

Nub's Nob Ski Resort of Harbor Springs has been voted as the number one terrain park on the entire North American continent by the readers of Ski Magazine! Nub's Nob was also voted number for four snow grooming.

Nub's Nob was previously voted into the top ten in all of the United States and Canada for snow and value, and is the only ski resort in the Midwest to ever capture North American "Gold Medals" from Ski Magazine. "All we think about is snow, snow, snow, running the best ski and snowboard resort of our size possible and making our customers number one," according to Nub's Nob head of guest services, Scott Stillings.

The readers of Ski Magazine obviously feel that "Nub's" has been doing a fantastic job of pleasing its customers. Northwest Lower Michigan boasts some of the best skiing and snowboarding in the Midwest, including Nub's Nob, Boyne Mountain in Boyne Falls, and Boyne Highlands in Harbor Springs. Think snow!

Petoskey Pointe Construction Update

2006-11-11T12:26:00.000-05:00

Petoskey Pointe Construction Update

Several readers have asked for an update on the Petoskey Pointe Project. Over the past couple of weeks, underground utility upgrades/improvements to accomodate the project have been substantially completed.

According to Petoskey City Manager George Korthauer, a timeline for building construction on the Petoskey Pointe project has not yet been established, although developers have a county-issued permit to begin foundation work when ready.

The Petoskey Point Project has continued to garner its share of controversy. The most recent being the apparent use by the developer of botched environmental test results to obtain $4.5 million in brownfield redevelopment tax credits from the state. In its tax credit application, the developer reportedly indicated that 10,000 cubic feet of contaminated soil would need to be removed from the site. As it turns out, supposedly only 200 cubic feet of contaminated soil existed on the site. Speaking through her spokesperson, Governor Granholm has apparently expressed her desire that the circumstances surrounding the granting of the tax credit be reviewed by the Michigan Economic Development Corporation.

Honor Our Veterans

2006-11-08T10:29:00.000-05:00

Honor Our Veterans

I was saddened to read the obituary of former Charlevoix resident Army Major Douglas E. Sloan in Monday's Petoskey News Review. Sloan, a decorated combat veteran, was killed in "Operation Enduring Freedom" in Afghanistan on October 31st, leaving behind wife Kerry and four young children. Flags in Charlevoix are being flown at half-staff in his honor. Although I did not know Major Sloan personally, we both graduated from high school in 1985 and played football against each other.

How can one begin to comprehend the untold sacrifices which have been made by Major Sloan and countless other veterans and their families who have gone before him? We owe our safety, security and way of life to these brave men and women who are fighting and have fought to keep our nation free.

When was the last time you thanked a vet, or honored a veteran's service to our country? Veterans Day takes place on November 11, 2006. Perhaps you could read about the origins of Veterans Day, or take time to actually participate in Veterans Day activities. Here are 7 ways to celebrate Veterans Day with your children.

In my opinion, one of the most important duties we have as citizens of the United States is to vote. We have the freedom to exercise our beliefs because of the sacrifices of our veterans and their families.

Fittingly, Petoskey's American Legion Post was recently renamed to memorialize Marine Corporal Michael B. Lindemuth, a Pellston resident who died in April 2005 while serving in Iraq. Corporal Lindemuth's family gathered with local American Legion members this past Saturday to commemorate the event. Corporal Lindemuth's brother, Bryan, stated that "We as a family, even though we are still grieving . . . recognize that without sacrifices such as the one made by my brother, we wouldn't be able to live in the country we live in."

Please join me this year in honoring Major Sloan, Corporal Lindemuth, and all of our veterans on Veterans Day.

New Charlevoix Public Library Amazing!

2006-10-26T22:09:00.000-04:00

I stopped by to check out the new Charlevoix Public Library recently. The grand opening for the new library was held on October 7th. The new library is incredible. The main reading room is very impressive, with large book stacks, desks, abundant computer stations and comfortable chairs. There are all sorts of other rooms, including a Michigan collection, a Children's reading room, activity center and garden, and a cozy reading room for newspapers and magazines, complete with stained glass lamps, wingback chairs, and gas fireplace.

What a treasure for generations of Charlevoix residents to come! Congratulations Charlevoix on your new library!

"Outside of a dog, a book is a man's best friend. Inside of a dog, it's too dark to read." — Groucho Marx

Northern Michigan Land Sales Fall

2006-10-19T09:35:00.000-04:00

Northern Michigan Land Sales Fall
In response to a comment left by a reader to an earlier post, I decided to run some numbers on Emmet and Charlevoix County land sales. These sales include vacant land, lots, acreage, waterfront land and lots, and water access land and lots.

The number of land sales for the first three quarters of 2006 is down significantly from the same period last year. During the first three quarter of 2006, there were 222 sales with a total dollar volume of $28,586,258. The average sale price was $128,767 with a median price of $44,250.

For the first three quarters of 2005, there were 331 sales, with a total dollar volume of $48,904,506. The average sale price was $147,748, with a median price of $50,000.

So where do we stand compared to last year, in terms of sales of vacant land? Unit volume is down by almost 1/3, dollar volume is down over 41%, average sale price is down almost 13%, and the median sale price is down 11.5%.

These appear to be much larger drops than we have seen in the residential market this year. I'm not quite sure how to explain the large drop. Purchases of land may be more discretionary than purchases of homes. Certainly, residential building activity has fallen off considerably over the last year. Builders and developers are much less likely to be building homes on speculation. There are many brand new homes on the market just sitting, waiting for buyers, and an ample supply of available building sites. As a result, builder and developer demand for raw land and new home sites has probably decreased significantly.

Charlevoix Apple Festival

2006-10-17T09:22:00.000-04:00

Charlevoix Apple Festival
After several wintry days, the skies cleared on Sunday and all were treated to a glorious fall day. The weather for the annual Charlevoix Apple Festival was picture perfect, and my family and I took the opportunity to travel to Charlevoix for one of our favorite festivals. This year's festival did not disappoint. With numerous artists and vendors displaying their crafts, it was a perfect opportunity to get some Christmas shopping done early. We also managed to sneak in some plain donuts and caramel apples, of course. One can't go to the Apple Festival without buying some apples, and my wife chose some Honey Crisps. Boy are they delicious!

Surf's Up Petoskey!

2006-10-15T16:45:00.000-04:00

Surf's Up Petoskey!

I never imagined I would wake up to a raging blizzard on Friday, October 13th. I can remember having a few snowflakes in October, but nothing like this. You can imagine my surprise when I saw four surfers in the waters of Little Traverse Bay in the middle of the snowstorm!

Now I actually remember reading an article earlier this year about how good the surfing can be on Lake Michigan. Other than the temperatures in the 30's and blinding intermittent snow squalls, surfing conditions were ideal, with winds steady at 30+ knots and wave heights peaking at fourteen feet (according to the NOAA data buoy in the middle of Lake Michigan).

Cowabunga!

Northern Michigan Real Estate Sales Continue Slide in 3rd Quarter of 2006

2006-10-14T10:21:00.000-04:00

Northern Michigan Real Estate Sales Continue Slide in 3rd Quarter of 2006

Northern Michigan residential real estate sales for the 3rd Quarter of 2006 declined over 15% from year ago levels, dropping from 242 sales in the 3rd Quarter of 2005 to 205 sales in the 3rd Quarter of 2006. The 205 residential sales in the Petoskey, Harbor Springs, Charlevoix and Boyne City school districts represents a sales volume decline of over 25% from the high of 274 residential sales in the 3rd Quarter of 2004.

Note: Based on information obtained from the Northern Michigan Multiple Listing Service for the period from July 1 - September 30, 2001-2006.

Boyne City Real Estate - Poor 3rd Quarter

2006-10-13T16:54:00.000-04:00

Boyne City Real Estate - Poor 3rd Quarter
The latest Boyne City residential real estate market statistics for the 3rd Quarter of 2006 are abysmal. The number of residential sales in the 3rd Quarter of 2006 dropped to 31, from 47 sales in the 3rd Quarter of 2005, a decline of almost 35%. The dollar volume of residential sales in the same period dropped to $7,965,400 from $15,944,670 in the prior year, a decline of over fifty percent. The median sales price dropped significantly as well, from $186,900 in the 3rd Quarter of 2005 to $155,700 in the 3rd Quarter of 2006, a decline of over 16%.

Note: Based upon information obtained from the Northern Michigan Multiple Listing Service for the periods from July 1 - September 30, 2005-06.

Reaction to Michigan's 2nd Gubernatorial Debate

2006-10-11T13:27:00.000-04:00

Did anyone see last night's gubernatorial debate? I missed the first one, so I made it a point to tune in. Seemingly, most of the time was spent debating which candidate has the more misleading campaign ads.

Fortunately, at least the public seems to have focused in on the real issues at stake in this election, as shown by this sampling of opinions from the Detroit Free Press debate reaction website.

"Please, for the love of all that is Holy, Dick needs someone to tell him: NO COMB OVER! YOU ARE BALD DUDE BE PROUD OF IT. Nothing looks more silly on an adult male then trying to comb over a bald head."
- Tony

"I cannot take seriously the candidacy of a woman who lets a festering mole grow unchecked on her own face. Please, seek the help of a dermatologist immediately."
- Grossed Out

Holy cow, are we ever in trouble.

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Petoskey Breakwall Repairs Underway

2006-09-29T02:55:00.000-04:00

The U.S. Army Corps of Engineers is in the process of repairing damage the Petoskey Breakwall sustained during a storm last winter, when a large section of concrete was dislodged by wind and ice.

On scene from Wisconsin for the repairs are USACE tugs "Kenosha" and "Racine", along with barge "Manitowac". Work has been delayed recently on account of weather.

The breakwall, which protects the Petoskey City Marina, reportedly dates back to the 1890's. On behalf of everyone who docks their boat at the city marina, or who enjoys taking a stroll on or swim from the end of the breakwall, a big thank you to the Army Corps of Engineers!

Agents Falling Short on Disclosure

2006-09-23T08:56:00.000-04:00

Joel Stern of Silver Spring, Maryland, filed a lawsuit against Weichert Realtors, reportedly one of the largest independent brokerage firms in the country, for failing to properly disclose that they represented the seller in connection with his recent aborted home purchase. Stern believes he was induced to sign a contract to buy the house at an excessive price because the agent that Stern thought represented him as a buyer's agent was in fact functioning as an agent for the seller. Click on this link to the article for all of the sordid details.

Recent data released by the National Association of Realtors indicates that real estate agents are failing to disclose whom they represent in transactions at an alarming rate, even where state laws (such as Michigan's agency disclosure law) require them to do so in writing at their first substantive meeting with a potential client.

According to the author of this article, Kenneth Harney of the Washington Post, "You as a buyer or seller need to be alert. Demand a formal disclosure of representation before beginning any substantive discussions with an agent. Do not assume that you are working with a buyer's agent whose sole loyalty is to you."

Harney further cautions, "If it's not in writing, it doesn't exist. In the absence of a signed buyer-agent agreement or other disclosure to the contrary, your agent is almost certainly working for the seller and will squeeze the highest price possible out of you on the seller's behalf."

Related Posts: Agent Disclosure Worse Than Ever
Agency Disclosure Laws Largely Ignored

Petoskey Real Estate Sales Rebound

2006-09-17T22:48:00.000-04:00

Petoskey residential real estate sales volume for the month of August, 2006 rebounded slightly from last year's anemic numbers. Although still well shy of the 41 sales recorded in August, 2004, the 26 transactions reported in August, 2006 was an improvement over the 21 transactions recorded in August, 2005.

Petoskey residential sales measured by sold dollar volume for the month increased a whopping 50%, from $5.6 million in August, 2005 to $8.4 million in August, 2006. While the jury is still out, it looks like the Petoskey real estate market may have bottomed out in 2005, and is now showing signs of improvement.

Michigan Real Estate Agency Relationships

2006-09-05T22:49:00.000-04:00

The subject of real estate agency relationships is confusing and often misunderstood, even by many real estate licensees themselves. Fellow National Association of Exclusive Buyer Agents (NAEBA) Member Jon Boyd of The Home Buyer's Agent in Ann Arbor has produced an informative video explaining the six different types of services available to homebuyers in Michigan, including seller agency, buyer agency, exclusive buyer agency, dual agency, designated buyer agency, and transaction brokerage.

Six different bypes of services available to homebuyers from real estate licensees in Michigan? No wonder consumers are confused! Are you familiar with the Syms clothing store slogan, "An educated consumer is our best customer"? Unfortunately, uneducated customers are far more profitable for the entrenched real estate establishment. I challenge the National Association of Realtors (NAR) and the Michigan Association of Realtors (MAR) to do something, anything, to help educate the public when it comes to choices regarding real estate agency relationships.

Unfortunately, instead of trying to educate and inform consumers, MAR has been scrambling to try and enact minimum agency services legislation in Michigan under the guise of "consumer protection". This anti-consumer, anti-competitive legislation is nothing more than a thinly veiled attempt to keep flat-fee or discount brokers off of the MLS. Shame, shame, shame!

Exclusive Buyer Agents Mentioned in Wall Street Journal Publication

2006-08-31T10:56:00.000-04:00

Exclusive Buyer Agent's were favorably mentioned in a recent article published by RealEstateJournal.Com, the Wall Street Journal's online "Guide to Property". In an article entitled "Selecting a Real-Estate Agent in a Cooling Housing Market", the author quotes Tom Early, President of the National Association of Exclusive Buyer Agents (www.naeba.org), who states that "By hiring a representative who works on only one side of the transaction, you'll get a specialized agent who probably won't have a conflict of interest."

While the subject of real estate agency relationships is confusing and often misunderstood, even by many real estate licensees themselves, exclusive buyer agency seems to be gaining awareness in the mainstream media, with recent favorable mentions in a number of publications, including Consumer Reports and Money Magazine.

North Central Michigan College

2006-08-30T09:44:00.000-04:00

North Central Michigan College is a tremendous asset to our community, providing accessible, affordable, quality post-secondary education and job skills training to area residents. Through its University Center partnerships, students can take courses from participating universities, leading to bachelor's and master's degrees.

NCMC enrolled 2,792 students for the Fall 2005 semester. With its main campus located in the City of Petoskey, NCMC had a 2005-2006 fiscal year budget of $11.7 million. The college is primarily funded through local property taxes, which contributed approximately $4.85 million to the 2005-2006 budget. Other revenue sources included tuition and fees ($3.8 million) and state appropriations ($2.7 million).

According to NCMC President Cameron Brunet-Koch, Ph.D., 90 out of 100 ninth graders say they want to go to college, but only 40 will, and only 18 out of 100 will actually graduate. I heartily agree with her assessment that Michigan's future success depends on our ability to raise that percentage.

Up North Real Estate: Cottages for the Taking

2006-08-24T16:01:00.000-04:00

In case you missed it, here is a link to the Detroit Free Press article which was published earlier this Summer in which Yours Truly was quoted. At the time I was contacted by one of the authors, I had just completed some market research for some clients contemplating the the purchase a Petoskey home. The authors interviewed numerous Northern Michigan real estate agents and property owners for the story, with the consensus being that given the current market conditions, this may be a good (or even great, if you give any credence to headlines) time to buy.

With for sale signs everywhere, now could be a great time to buy [Detroit Free Press]

Homeowner Desperation Means Strong Buyer's Market

2006-08-24T12:02:00.000-04:00

The National Association of Realtors, in a report released on August 15th, indicated that housing prices in the Detroit Market declined 8% year over year in the second quarter of 2006, compared to the same quarter in 2005. According to a recent MSN Money article, the Detroit market is as bad as it gets, and one of the toughest real estate markets in the country to try and sell a home. According to the Detroit News, housing inventory in the Detroit market is up 43% from a year ago. The wobbly job market and uncertainty regarding the future of the Big Three automakers has apparently resulted in severe weakness in the Detroit real estate market.

This news obviously does not bode well for the Northern Michigan Real Estate market, at least in the short term. Weakness in the Detroit area which is arguably the number one source for Northern Michigan real estate purchasers may have created buying opportunities, however, for those who have been waiting on the sidelines to see where the dust settles. The buyer's market in Northern Michigan is currently in full swing, and with the recent dip in interest rates, a number of buyers have been stepping forward recently to take advantage of the current market weakness. We are finally getting to the point where we are starting to see property owners capitulate and lower prices in order to sell their properties, which is somewhat of a change of events here in Northern Michigan.

When Homeowners Are Desperate to Sell [MSN Money}

Little Traverse Bay Regatta

2006-08-02T09:57:00.000-04:00

It was a picture perfect weekend for the 46th annual Little Traverse Yacht Club (LTYC) "U-Gotta Regatta", which was held the weekend of July 28-30. More than 60 sailboats, ranging from 24 to 70 feet, participated in the event, which traditionally follows the running of the Chicago Yacht Club's Chicago to Mackinaw sailboat race. One of the busiest weekends of the summer in Harbor Springs, regatta weekend included the famous U-Gotta Regatta Party at Irish Boat Shop on Friday afternoon, pancake breakfasts hosted by LTYC on Saturday and Sunday mornings, along with cookouts in the afternoons. The regatta has become an important attraction both for the community and local businesses. Bill Gurney, owner of Gurney's Harbor Bottle Shop and the famous Gurney's sandwiches, expected to have over 250 sandwiches pre-orded on Saturday alone, with turkey being the best seller.

Harbor Springs Real Estate Sales Rebound in 2nd Quarter

2006-07-12T15:10:00.000-04:00

Sales of Harbor Springs homes and condominiums rebounded somewhat in the second quarter of 2006 from a very slow second quarter last year. While still down from the 42 sales reported in the second quarter of 2003, sales rebounded to 33 units in the second quarter of 2006, from a low of 29 units sold in 2005.

Note: Based on information from the Northern Michigan MLS for the periods from April 1 through June 30, 2003-2006.

Petoskey 2nd Quarter Real Estate Sales Retrace to 2003 Levels

2006-07-11T17:29:00.000-04:00

Sales of Petoskey homes and condominiums in the second quarter of 2006 retraced to levels not seen since 2003. Fueled by historically low interest rates and a strong Michigan economy, Petoskey second quarter residential sales peaked in 2004 at 88 units, from 73 units in 2003. A weak Michigan economy and higher interest rates dampened sales in the second quarters of 2005 and 2006. The second quarter of 2005 saw 76 sales, while 73 units sold in the second quarter of 2006, matching the number of sales in 2003.

Note: Based on information from the Northern Michigan MLS for the periods from April 1 through June 30, 2003-2006.

Enjoy a Northern Michigan Bike Ride

2006-06-08T08:16:00.000-04:00

The Top of Michigan Trails Council has posted an events calendar on their website with a schedule of the many organized bike rides which will be held in Northern Michigan this summer.

TOMTC is a mostly volunteer, non-profit organization that works with various units of government and numerous other organizations to build a network of recreational trails in eight northern Michigan counties, including Alpena, Antrim, Charlevoix, Cheboygan, Emmet, Montmorency, Otsego, and Presque Isle counties.

Get out and explore all of the beauty Northern Michigan has to offer! Have fun and enjoy one of the many bike rides available to you in our area.

Top of Michigan Trails Council Full Events Calendar

Petoskey Pointe Groundbreaking

2006-06-01T12:01:00.000-04:00

A ceremonial groundbreaking for the proposed $60 million Petoskey Pointe redevelopment project took place on Friday, June 26th. According to Dr. David Jankowski, a partner in Farmington Hills based Developer Lake Street Petoskey Associates, "It is our sincere hope that the final product can be a development that Petoskey can be proud of."

The Petoskey Pointe project is expected to be completed by 2008. Plans include residential and hotel condominiums, a spa, parking garage, conference center, restaurant, courtyard and retail space. Northwestern Bank is also planning to build a new office on the block.

Demolition of the existing buildings on the block, including the old Gaslight Cinema, is slated to begin this week. I remember watching the movie "Jaws" at the Gaslight Cinema in the summer of 1975, over thirty years ago. Wow! Has it been that long? The line for "Jaws" wrapped around onto Mitchell Street. Same thing with Star Wars in 1977. The old Gaslight Cinema sure had character, unlike the new "Petoskey Cinema." It will be sad to see it finally come down, even though it has been closed for a few years now. Oh well, I guess that's progress. . .

Ground Broken for Petoskey Pointe [Petoskey News Review]

Tough Times for Northern Michigan Golf Industry

2006-05-22T09:28:00.000-04:00

The combination of a saturated market and a stagnant economy has meant tough times for the Northern Michigan Golf Industry. In Emmet County alone, eight new courses have opened since 1990--144 new holes of golf. Unfortunately, the number of people playing golf locally hasn't kept pace with the pace of golf course development, resulting in some lean years recently.

The silver lining in this dark cloud is the fact that you will find it much easier to get great tee times even on the busiest golfing days of the summer. With ample supply and a dearth of buyers currently, there are also some good values to be had on golf property.

In saturated market, local clubs struggle [Record Eagle]

Don't Be a Dual Agency Dupe

2006-05-19T18:53:00.000-04:00

Marketwatch columnist Lew Sichelman says that an agent who plays both sides of the housing fence compromises your position. This is from his Realty Q&A column on Marketwatch:
Realty Q&A - Don't let agent force dual agency on you
May 18, 2006

WASHINGTON (MarketWatch) -- Question: I'm about to make an offer on a three-unit property, but before I do anything the sales agent wants me to sign a dual-agency disclosure. I informed her that I'm not comfortable with that and I'd like exclusive loyalty. She then said that if we go through with the deal or offer, I'd have to sign it anyway. Is that true? Why would I have to sign that anyway if I'm not comfy with it? I would rather do a designated agency. Clayton

Answer: There's no reason -- or law -- requiring you to sign anything you don't want to. And you are absolutely correct, you have the right to exclusive loyalty, or in the case of real estate, single agency.

Sellers aren't the only ones who need exclusive representation. So do buyers. Otherwise, the agent who is working with you could divulge critical information to the seller or seller's agent. It may happen inadvertently, but intentional or not, if certain information gets back to the seller -- the fact that you are willing to offer a higher price if need be, for example -- it could have a damaging effect on your side of the equation.

Sales people who want to be dual agents try to walk the line between buyer and seller, and they often successfully do so without a mishap. However, without a signed statement saying they disclosed the fact that they are working on behalf of both parties -- or sometimes, in the case of a transaction facilitator, neither one -- they are walking that tightrope without a safety net. The disclosure protects them because by signing it you are agreeing to work with someone who speaks for both buyer and seller and therefore, in my opinion, speaks for no one.

The problem here is that the agent in question has already shown you the property and expects a commission if you go through with the sale. If you refuse to sign and buy the property anyway through another broker, your original agent will probably fight you tooth and nail to get her money. But to my way of thinking, she should have had you sign a dual-agency disclosure form before she showed you a single property.

So at this point, you probably have two choices -- go through with deal or seek legal help to find out what, if any, recourse the agent has if you drop her and find someone else.

If you decide to go ahead, make sure you tell the agent nothing that will hurt you in your negotiations. If you find another agent, don't be bullied or intimated by the first one. And when picking a new agent, make sure you opt for someone who is an exclusive buyer broker (agent) as opposed to someone who works for one or the other but not both.

Most exclusive buyer brokers are trained in how to represent buyers alone, whereas those who bat from both sides of the plate, depending on who's pitching, are usually not. They think they can do both, but the jobs require different mind-sets. And without proper training, a seller's agent has a hard time changing hats.

For what it's worth, the National Association of Realtors' code of ethics requires members -- not all agents belong to the 1.2 million-member NAR -- to disclose in writing whom they represent, the buyer, seller or both. In addition, most states have laws requiring such disclosure, and most risk-management experts recommend obtaining a signed statement even when state law doesn't call for one.

But in the most recent NAR research, one in five buyers and sellers said they never signed a disclosure statement and another 20% said they don't remember whether they signed one or not. Among first-time buyers -- those who would tend to find the question of agency most confusing, if only because they have never gone through the buying process before -- more than one in four said they hadn't signed a disclosure statement.

Realty Q&A [Marketwatch]

AvoID Theft - Deter, Detect, Defend

2006-05-18T08:22:00.000-04:00

The National Association of Realtors is teaming up with the Federal Trade Commission to help educate consumers about the growing problem of identify theft. The Federal Trade Commission currently estimates that there may be as many as 10 million victims of identity theft each year! Studies estimate the annual cost to consumers to undo the harm caused by identity theft to be $5 billion, while it is estimated that identify theft costs businesses nearly $50 billion in lost revenue annually. These are clearly alarming numbers!

The FTC has received thousands of real estate related identity theft complaints. Oftentimes consumers first learn they are victims of identity theft when attempting to buy a home, shattering dreams of home ownership and forcing victims to rebuild their good name and destroyed credit.

The Federal Trade Commission has come up with a number of helpful suggestions to help combat identity theft, revolving around three themes--deter, detect and defend. These suggestions are outlined in a helpful brochure for consumers. This brochure is must reading and may help you avoid becoming victimized by the growing menace of identity theft.

AvoID Theft - Deter, Detect, Defend

Petoskey Ranked 2nd in Midwest for Golf

2006-05-16T10:29:00.000-04:00

Golf Digest has ranked the Petoskey/Traverse City area as one of the top golf-home markets in the Midwest. The Petoskey area received the highest golf score (34.7) of any community in the Midwest. The Golf Digest golf score reflects the number and quality of courses, golf days per year and course congestion.

To give you an idea of the quality of courses in Northern Michigan, the Petoskey/Traverse City area's golf score ranked 11th nationally, behind only Scottsdale, Las Vegas, Palm Springs, Maui, Myrtle Beach, Wilmington (NC), Pinehurst (NC), Hilton Head, Hawaii (Big Island), and North of Tampa. The Petoskey/Traverse City area's golf score of 34.7 compares favorably to Hilton Head (34.8), Hawaii-Big Island (34.8) and North of Tampa (34.8). Pretty good company, wouldn't you say?

According to the National Association of Realtors, Americans bought more than 1 million vacation homes in 2005, and golf was a deciding factor in nearly a third of these purchases. The Golf Digest rankings were prepared to help golfers in their search for a golf-home getaway.

Midwest Golf Rankings [Golf Digest]

Petoskey Pointe Project Delayed

2006-05-15T17:44:00.000-04:00

The Petoskey Pointe Project slated to be built in downtown Petoskey has apparently been delayed once again. Demolition to make way for the proposed $60 million, 160 unit condominium-hotel has now been pushed back to at least June, as the Developer has not yet acquired title to all of the parcels of land upon which the proposed development is to be built. In addition, the Developer has not yet selected a general contractor for the project.

No builder, no start date for condo project in city [Record Eagle]

Petoskey Featured in "Where to Retire"

2006-05-10T18:05:00.000-04:00

Petoskey is profiled in the May/June 2006 issue of Where to Retire, a magazine claiming to be America's foremost authority on retirement relocation, with over half a million in readership.

According to Where to Retire, "One of the appealing features drawing retirees to this recreational center in Northwest Michigan is its location in the wooded hills and along the Lake Michigan Shoreline. Petoskey offers skiiing in the winter, world-class golfing in the summer, fishing and boating on area lakes and hiking and biking in nearby state parks."

"Petoskey is also home to cultural amenities like the Little Traverse History Museum, which highlights the areas connection to Ernest Hemingway. Resident retirees also enjoy annual concerts and festivals, as well as the Crooked Tree Arts Center, which offers a variety of classes year-round."

Petoskey was also featured as a retirement destination by the magazine in a 1992 article, made the 2001 list of 100 top places to retire, and was profiled as one of eight desirable retirement areas with cooler climates in 2004.

Mamie & Barbie

2006-05-08T18:20:00.000-04:00

Sorry for the diversion, but is my little princess cute or what? Here she is at her 4th Birthday (Barbie) Party along with the cake my wife Kim made. Can you believe this cake? My wife is so talented. She is amazing. They both are.

As for the party, if you are a Mattel stockholder, sleep well tonight, my friend. With my daughter's party and all of the associated Barbie purchases, you will fare well this quarter.

Top 15 Real Estate Trends - 2006/2007

2006-05-05T13:26:00.000-04:00

When the nice folks at RealtyBlogging.com asked me to review the 2006 Swanepoel Trends Report from RISMedia, how could I refuse? Anything written by someone whose first name is Stefan is worth reading, right? All kidding aside, I have followed Stefan Swanepoel for a number of years now, and have always been interested in what he has to say.

The Swanepoel Trends Report begins by providing an overview of events which have impacted the real estate industry over the past ten years (1995-2005), and then gives us a glimpse into the future based upon the author's identification of what he sees as the top fifteen trends shaping the industry.

The author's stated goal is to introduce real estate professionals to emerging trends at an early stage, enabling them to prepare for many possible future scenarios. From Application Software Providers (ASPs) to Zillow, if it may have a role in shaping the future of real estate, it is almost surely contained in Swanepoel's report.

I found the report to be very comprehensive in its breadth of coverage, and an essential reference for anyone wanting to stay on top of the latest industry trends. However, there are a couple of emerging trends, mainly involving competition and regulatory matters, which I felt were largely ignored.

One big wild card as I see it is the current anti-trust suit which the U.S. Department of Justice has filed against the National Ass'n of Realtors, litigation which could obviously impact NAR's proposed new ILD policy and the way in which MLS data is shared and disseminated. In my opinion, the decision as to whether a MLS should be treated as a public utility, as opposed to a proprietary tool primarily for the benefit of MLS members, will impact the future of the industry for years to come. Another subject given little attention in the report is the minimum service standard and anti-rebate legislation being pushed by a number of state Realtor associations, legislation which is also being seriously challenged by the Department of Justice and which has raised the ire of a number of consumer advocacy groups.

The joint workshop on competition in the real estate industry put on last fall by the Dept. of Justice and the Federal Trade Commission highlighted for me the fact that attempts by the traditional Realtor establishment to stifle innovative new business models will be met with stiff regulatory and/or legislative resistance. The current federal legislative/regulatory environment will not favor historical industry business practices, and may be an impetus for sweeping changes in the industry, which may include allowing federally chartered banks into the real estate business.

I also happen to believe that the "For Sale By Owner" movement is gaining traction as websites which aggregate FSBO "listings" gain critical mass in certain markets, most notably Madison, Wisconsin. Increasing numbers of "unrepresented sellers" may be a challenge the traditional industry will need to face, especially if major internet players enter the FSBO fray.

Also on the radar screen for me as an exclusive buyer agent is the continuing shift toward non-agency relationships, such as transaction brokerage, in a number of states, as well as the wholesale lack of meaningful agency disclosure as documented by NAR's most recent survey of Buyers and Sellers. I believe that groups such as the National Association of Exclusive Buyer Agents, of which I am a member, will continue to have a role to play in shaping the future of the way real estate is practiced.

Stefan Swanepoel's 2006 Trends Report will most certainly enable its readers to better plan for the future by highlighting those trends which will most likely affect the future of the real estate industry. My only suggestion would be that the the author place more emphasis on the current legal and regulatory issues facing the industry, as they may greatly impact the future of real estate as we know it.

Public Road End Controversy

2006-04-24T00:07:00.000-04:00

The battle between lakefront property owners and backlot owners over the right to maintain docks at public road ends continues on unabated. While numerous court rulings over the years have established the principle that publicly dedicated streets terminating at the edge of navigable waters are generally deemed to provide public access to the water, those public access rights are limited in their scope.

Permissible uses of public road ends by menbers of the public include the rights to use the surface of the water in a reasonable manner for such activities as boating, fishing and swimming. Also incidents of the public's right of navigation are the ability to construct a public boat launch and to anchor boats temporarily in the water adjacent to a public road end. However, the courts have generally held that the right of public access does not include the ability to install private docks or boat hoists for the overnight mooring of boats, or the right to use public road ends for lounging, sunbathing or picnicking.

Although the bulk of the controversy surrounds the use of public road ends on Houghton and Higgins lakes, there is currently a public road end case pending in Charlevoix County involving a Walloon Lake road end.

If you are looking at buying a backlot property which supposedly has "water access", make sure you consult a real estate attorney prior to any purchase to determine exactly what rights, if any, inure to the benefit of the owner of the backlot.

Illegal Docks Spark Lake Access Fight [Detroit News]

2006 Michigan's Fun Kick-Off in Charlevoix

2006-04-12T22:08:00.000-04:00

The Charlevoix Area Chamber of Commerce and the Michigan Festivals and Events Association (MFEA) are teaming up to present the 2006 Michigan’s Fun Kick-Off which will be held at Castle Farms on April 28 - 29, 2006. Be sure to bring your family to enjoy the following events:

Friday, April 28
5:00pm – 10:00pm Carnival Midway – Castle Farms.

Saturday, April 29
10:00am – 5:00pm MichiganFun Art Fair – Castle Farms.

10:00am – 6:00pm Kids’ Kingdom with special guest Ronald McDonald –
Castle Farms.

11:00am – 7:00pm Flavors of Michigan (A Wine Brew & Food Infusion) –
Castle Farms.

Noon – 10:00pm Carnival Midway – Castle Farms.

8:30pm – 9:30pm Musical Entertainment by Mojo & the Boogieman –
Downtown Charlevoix in East Park.

9:45pm (Approximately) Fireworks Extravaganza –
Downtown Charlevoix over Round Lake.

Sunday, April 30
12 Noon – 5:00pm Carnival Midway – Castle Farms.

Bay Harbor Makes List of Top 10 Ports

2006-04-10T11:02:00.000-04:00

Bay Harbor made the list of Top 10 cruising destinations in Motor Boating Magazine's March, 2006 issue. Here is the full list.

1 Bay Harbor, Mich. Located on the south shore of Little Traverse Bay, this manmade harbor has become a Midwest favorite, although it was created only 12 years ago.

2 Charleston, S.C. A natural stopover for coastal and ICW cruisers, this walkable city has beautiful houses and gardens to admire, plenty of transient dockage and marine services of every kind.

3 Exuma Cays, Bahamas This 90-mile long chain of islands south of Nassau includes deserted beaches and brilliant coral reefs.

4 Key West, Fla. There’s great fishing, historic homes and restaurants of all kinds in a subtropical setting unlike any other U.S. port. And they don’t call it Margaritaville for nothing.

5 Nantucket Island, Mass. Quaint cobblestone streets and colonial architecture are paired with upscale shops and restaurants, and you’ll see some of the most beautiful boats in the country.

6 Newport, R.I. It has a well-protected harbor, a busy social scene, a rich history and "cottages" to die for.

7 San Diego, Calif. San Diego Bay and Mission Bay have waterfront restaurants, marinas and services, plus the U.S. Navy’s presence—an endless source of activity.

8 San Juan Islands, Wash. Navigating the channels of the San Juan Islands is like driving through the mountains on saltwater highways.

9 Southwest Harbor, Maine Perhaps the best known of Mount Desert Island’s storied harbors, it’s home to Hinckley Yachts and Somes Sound and presided over by mountainous Acadia National Park.

10 St. Augustine, Fla. A visit to the oldest city in the U.S. (circa 1565) must include a tour of the Castillo de San Marcos to absorb the pre-colonial Spanish influence.

Congratulations, Bay Harbor! That is some pretty good company you are keeping.

Top Ten Ports [Motor Boating]

MDOT Approves Funding for Harbor Springs Bike Path

2006-04-07T17:30:00.000-04:00

The Michigan Department of Transportation (MDOT) recently approved funding for the completion of the Little Traverse Wheelway from its current dead-end at the intersection of M-119 and Pleasantview Road into the City of Harbor Springs.

The three mile extension of the existing path will run on the north side of M-119, and approximately two of the three miles will be located a safe and significant distance away from M-119.

MDOT approved a total of $958,473 for the project, which is expected to be completed in 2008. This is one of the last remaining links to complete the trail between Charlevoix, Petoskey and Harbor Springs.

M-119 Bike Path Funding Approved [Harbor Light News]

Protect Yourself from Identity Theft!

2006-03-29T15:35:00.000-05:00

If you are like me, and receive numerous unsolicited offers of credit on a routine basis, there is now an easy way to opt out of receiving such offers.

OptOutPrescreen.com is a joint venture among Equifax Information Services, LLC, Experian Information Solutions, Inc., Innovis Data Solutions, Inc., and TransUnion, LLC (collectively the "Consumer Credit Reporting Companies"). Through the OptOutPrescreen.com website, you may exercise your right to Opt-Out, which is a term for removing your name from receiving firm offers of credit or insurance based on your credit information with the Consumer Credit Reporting Companies, Equifax, Experian, Innovis and TransUnion. OptOutPrescreen.com’s primary purpose is to accept and process requests from consumers to "Opt-Out" of receiving firm offers of credit or insurance.

I have exercised my right under the Fair Credit Reporting Act to opt out of receiving unsolicted offers of credit or insurance for the next five years. I believe that this will reduce the chances of my becoming a victim of identity theft in the event one of these unsolicted offers ends up in the wrong hands. Opting out is also the environmentally conscious thing to do. Think how many trees will be saved, along with gasoline, etc. associated with delivering all these offers. I have also been told that opting out may increase one's credit score on the order of ten points or more. I'm not sure whether this is true, but it sounds good.

In case you don't want to opt out online, you can also call 888-5-OPT-OUT (888-567-8688). If you want to opt in, you can do that also. What a country!

OptOutPreScreen.com

Resort Township's East Park to Remain Closed

2006-03-05T12:13:00.000-05:00

Due to the ongoing cleanup of environmental contamination by CMS Energy at the site of the former Petoskey cement plant, Resort Township's East Park will remain closed to the public for at least another season, and possibly longer.

According to township supervisor Robert Wheaton, much of the park will have to be torn out to remediate large piles of kiln dust, including the parking lots, steps to the waterfront and pavillion.

East Park to Remain Closed [Traverse City Record Eagle]

What Not To Say When Looking at Homes

2006-02-23T08:21:00.000-05:00

Real Estate author Mark Nash has some great money saving tips and advice for homebuyers when they run into home sellers or their agents at house showings. Don't even think about blabbing out any of the following exclamations:

"I love it.
It's perfect for us (me).
We (I) just fell in love with the house.
I (we) just found my next home.
It's our dream home.
We've loved it for years.
We love it. We want it.
It's the perfect house for us (me).
We love this house. Dearly."

Who would be so foolish, you ask? While this advice may just seem like common sense, do you really have any idea what type of information you are communicating to the listing agent (seller's agent) when looking for a home? Because of the high probability that your interest in a home can be communicated non-verbally, the most important advice from the author is to have your own agent. If you are represented by a buyer's agent, you may never even run into a seller or listing agent at a showing (they usually will not attend if a buyer's agent is present).

If you do happen to run into a listing agent or seller at a showing, here are some practical tips: (1) adopt a poker face; (2) keep away from listing agents or sellers when you're viewing a home; (3) don't stay too long; (4) moderate picture taking; (5) delay giving any feedback; and (6) ask only factual questions.

If you do find what you think is your "dream home", the author has some more good advice: (1) sleep on your decision, don't be impulsive; (2) go back for an additional showing; (3) review recent comparable sales; and (4) do not allow your emotions to get the best of you and waive basic contingencies such as home inspection, financing and attorney review.

Your Homebuyers Shouldn't Say "Love" or They'll Pay Dearly [Mark Nash, Broker Agent News]

Public Right to Walk on Great Lakes' Beaches Upheld

2006-02-22T12:15:00.000-05:00

The U.S. Supreme Court has refused to hear an appeal of the Michigan Supreme Court's recent decision declaring that the public has the right to walk the dry sand beaches of Michigan's Great Lakes shores.

In Glass v Goeckel, 473 Mich 667 (2005), the Michigan Supreme Court held that regardless of title, under the common law "public trust doctrine" applicable to the Great Lakes, the public has the right to walk the Great Lakes shorelands up to the ordinary high water mark ("OHWM"). For those who are curious, the OHWM is defined as follows: "the point on the bank or shore up to which the presence and action of the water is so continuous as to leave a distinct mark either by erosion, destruction of terrestrial vegetation, or other easily recognized characteristic."

In reaching its decision, the Michigan Supreme Court noted that historically, the state has served as "the trustee of public rights in the Great Lakes for fishing, hunting, and boating for commerce or pleasure." The Court added walking on the beach to this list, concluding that "because walking along the lakeshore is inherent in the exercise of traditionally protected public rights of fishing, hunting, and navigation, our public trust doctrine permits pedestrian use of our Great Lakes, up to and including the land below the ordinary high water mark."

Supreme Court Stays Out of Michigan Beach Walking Debate [Detroit News]

Time to Re-Finance Your ARM?

2006-02-15T02:06:00.000-05:00

While short term interest rates have been steadily rising recently, long term rates have not risen significantly. This has resulted in what is called an "inverted yield curve", where short-term interest rates approach or exceed long term rates. If you financed your home with an Adjustable Rate Mortgage (ARM) at a low rate within the last few years, you may be in for a nasty surprise when your rate adjusts.

For instance, I refinanced my home almost three years ago with a 3/1 ARM at 3.5%. The interest rate on my ARM is scheduled to adjust in July. There is a 2.0 cap on my initial adjustment and because short term rates have risen considerably, my rate will likely increase the full two percentage points. If rates continue to rise in the future, my rate could max out at 9.5%, which is the maximum rate cap contained in my mortgage note.

Instead of sticking with the ARM, I could refinance with a 30 year fixed at about 6.25%, locking in that rate for the life of the loan. This would protect me from the risk of further rises in interest rates.

Whether or not you should refinance depends upon your own individual circumstances. Refinancing may make sense if you plan on keeping your home for long enough to recoup the additional costs. With the recent rise in short term rates, refinancing your ARM is definitely worth discussing with your mortgage banker or financial advisor at this time.

Adjustable-Rate Mortgages Are A Smart Move for Some, But Not All [RealEstateJournal.com]

Construction of New Petoskey Casino Set to Begin

2006-02-13T15:37:00.000-05:00

Construction of the Little Traverse Bay Bands of Odawa Indians' new casino in Petoskey will be getting underway shortly, according to tribal chairman Frank Ettawageshik, with concrete work to begin within the next few days. The new casino will include 1500 slot machines, 30 table games, six poker tables and a theater with a capacity of up to 1,000. Also planned are a buffet restaurant and fine dining establishment.

The new casino will be located in Resort Township, just West of the existing Wal-Mart shopping center in Bear Creek Township. Lears road will be extended West to provide access to the property from U.S. 131. The new casino, which will include a high-rise hotel, will be joined in the area by a Lowe's Home Improvement center, which is planned for the property just south of the Wal-Mart shopping center.

The new casino, which is scheduled to open in June of 2007, is being built by Clark Construction Company.

Zillow - It's Alive!

2006-02-08T11:05:00.000-05:00

Yes, It's Alive! And after previewing Beta Version 1.0, I have discovered that much like Dr. Frankenstein and his little science project, the Zillow crew definitely has their work cut out for them.

Zillow has gone online as of today with the stated goal of trying to place a value (called a “Zestimate” in Zillowspeak) on every house in the country, and making that valuation information freely and openly available to consumers without any registration requirements. Zillow's business model will be advertising based, generating its revenues from ads on the site.

Zillow claims to have found data and information on 60 million homes around the country, with enough data and information to enable its statisticians and engineers to algorithmically make a Zestimate on 40 million of those homes, with a reported margin of error of 7.2%.

I found the available data for Michigan to be spotty at best. The first property I looked at was in Grosse Pointe Farms, Michigan, which according to Zillow is located in Washtenaw, rather than Wayne County. Oh well, I guess the two counties are pretty close to each other. When looking at the Zestimate, comparable sales were pulled from Southfield, Michigan, which for anyone unfamiliar with Metro Detroit is like comparing Beverly Hills with El Segundo.

The Zillow crew has definitely undertaken an ambitious project, and openly acknowledges that with a database exceeding 2 terabytes in size, there will undoubtedly be errors. The major challenge for Zillow will be obtaining accurate tax assessment and property sale information to populate their database. It sounds like Zillow may be joining local MLSs to try and obtain property and property sale information datafeeds. Zillow will undoubtedly have an awesome commodity on their hands once their nationwide property information database has been compiled. Hopefully we will all still be alive by the time that database is complete enough to actually provide us with reliable property valuations nationwide.

We’re Live! Zillow.com, the Beta, Launches! [Zillow Blog]