Locally Appropriate Inspections

Inspection needs vary from area to area, across the State and across the Country. When you work with an experienced local agent, you should be getting the very best advice on which inspections to have performed once you’ve found that new ‘dream house’.

In this area (Livingston County, Michigan), for example, I recommend the following tests to all buyers with whom I work: Structural (whole house), well/septic/water, and radon. Of course, if you live in an area where water is supplied by a municipal source you don’t need the well test. Likewise, a septic system inspection is moot if you’re connected to a sanitary sewer. But those are not common unless you live within the boundaries of one of our Cities, or you are in a dense development with smaller lots and a lot of homes.

The whole house inspection is vital to the typical buyer. Uncle Joe, the contractor, won’t see the same things that a trained, experienced inspector will see. Some areas are requiring well/septic inspections before title can be passed at closing. Washtenaw County is a perfect example. There, the seller must provide those inspections as a condition of closing. If there’s a deficiency in either, they must correct it at their expense, too.

Termite and ant (wood boring insect) inspections are never a bad idea, but they are required if you’re going through a Federal Housing Authority (FHA) loan to purchase. Consider this inspection with any loan if there are a lot of large diameter trees close to the house or if the house is predominantly shaded. A regular house inspection will often show evidence of wood boring insects if the infestation is bad.

Radon Gas

Radon gas is prevalent in my market area. It’s estimated that one of every four homes has an elevated level of Radon gas. An odorless, colorless gas, it’s a by-product of uranium decay. When the glaciers moved through this part of Michigan, carving out all of the lovely lakes that we enjoy, they left a glacial till that is responsible for producing Radon gas. See (http://www.epa.gov/radon/) the EPA’s web site for more Radon info.

Radon comes in through the open sump or cracks in the foundation, and accumulates in the lower level of the home. It is thought to be the second leading cause of lung cancer, right behind cigarette smoking. If you plan to spend a lot of time in the home’s lower level, you absolutely must get this inspection performed. Typically, the seller never had the home tested and has no knowledge of the high readings. They are shocked to discover that they’ve lived in a house with Radon for years. It’s also typical, but open to negotiation, for the seller to remediate this and make the house safe. Radon remediation is easily performed for a cost of anywhere from $650-$1,000.

In some areas, I recommend an additional arsenic test for the potable water, in addition to the usual nitrate and bacteria levels. Reverse osmosis water filters for drinking water are pretty effective at removing arsenic, but again, consult a water treatment professional. These systems can be pricy, too. See the State of Michigan's Drinking Water Standards page at http://www.michigan.gov/deq/0,1607,+7-135-3313_3675_3692-103430--,00.html.

When To Call Additional Experts

This is not a comprehensive listing, but I encourage buyers to call in experts in specific areas if there are especially troubling inspection results. The most common one that I see is with wet/damp/leaky basements. You love the house, but have a concern with a crack in the foundation or wall and see dampness or maybe have a moldy smell.

Most damp basement problems are easily solved. I recommend getting three quotes to determine the extent of the problem and a price to correct the it. I often advise buyers that we ask the sellers to pay for these repairs, but again – everything is open to negotiation, depending on the circumstances, structure of the offer and financial strength of the buyers.

Many inspectors will no longer go up onto the roof of a house for safety reasons. They opt instead to examine the room through high-powered optics from the exterior, and the inside structure from an attic space. If there are distressing results found during the usual inspection, you may want to have a couple of roofers out to confirm or discount the findings.

Many times, especially with older heating systems, it literally pays to have a heating-cooling expert to give the furnace and air conditioner a thorough check.

How To Find A Qualified Inspector

You can find an inspector easily. There are various, competing certifying bodies out there, so how do you know if your inspector is qualified? There is no State licensing required in Michigan. Rather than thumb through the phone book, I suggest that my buyer clients choose from among those inspectors that are members of the local Realtor Board. In my area that is the Livingston County Association of Realtors (at http://www.lar-michigan.com/). My feeling is that inspectors that are affiliate members of a Realtor Board are making an announcement that they will be thorough, responsible and professional. My experience has borne that out.

I do recommend that you interview inspectors to determine what certifications and training they have obtained, how timely they can perform the inspection, and determine which of the inspections they are able to perform. I strongly recommend against going with the lowest price as your main selection criteria.

Inspections are an important part of the home-buying process. Make sure that you are properly informed about which ones are customary in your area, then hire competent, qualified service providers.

Local Realtors Join In Relief Efforts

My local Realtor(R) board, the Livingston County Association of Realtors, is joining in the National Association of Realtors (NAR) relief effort for the victims of Hurricane Katrina. Locally, our efforts are in collecting money which can then be used by various local relief organizations. Nation-wide, as of this posting, NAR has collected $2,740,482. Many of us are also donating through local churches, the local chapter of the American Red Cross, and through our local Civic Organizations, such as Optimist and Kiwanis Clubs.

Realtors close to the stricken area have teamed up with technical experts from NAR, FEMA, the U.S. Department of Homeland Security, and Disaster Housing Resources to create a site where people can list available temporary housing, whether it's a spare room, an apartment, or a house. While Michigan has not experienced a huge influx of disaster victims, you can visit this site at http://www.hurricanehousing.net/.

Habitat For Humanity Fund Raiser

For the second consecutive year, the Livingston Habitat for Humanity organization, along with the Home Builders Assn of Livingston County and the Livingston County Assn of Realtors, conducted an art auction. This year's theme, "Bear Necessities", allowed businesses to adopt either a 4ft or 6ft bear. Local artists were then chosen to paint and decorate the bears. The bears have been on display in Brighton, Howell, Pinckney and Fowlerville for months. Last night's auction raised around $65,000 - $10,000 more than last year's inital fund raiser.

The Livingston Chapter of Habitat for Humanity also operates a 're-store', a retail store where they sell donated construction materials to raise funds for their building projects. The chapter recently completed its first home build in Handy Township. The home was on display in this year's Cavalcade of Homes.

The local re-store location is 1175 Rickett Rd Ste 3, Brighton, MI 48116, and their phone number is (810) 220-9986. Please support this worthwhile organization either with donations of materials or cash, or by volunteering. Find out more about Habitat for Humanity by visiting their national web site at http://www.habitat.org

Selling Quickly - Bucking the Trend

We've all read the stories about how it's taking longer to sell homes in our market area. That is true if you are looking at the aggregate sales averages, but remember that averages are comprised of high and low data points.

I want my clients be on the low side of the selling time graph, and the highest possible side of the selling price graph. Here are some thoughts for you. The old belief that it's all about "location, location, location" simply isn't true.

1. Price it right. When you're faced with the competition of today's market, even a few percent over market value means fewer showings. You're also more likely to get a 'lowball' offer, rather than one that is workable.
(as of 7/6/05, the local data through 6/31/05 shows this: 30% more homes on the market when compared to last year and only 5.2% more sales than last year. This does not include all of the new construction, either.)

2. Make it sparkle. With all of the two income families out there, a large part of the buying population wants something that is in 'move-in' condition. Pay special attention to bathrooms and the kitchen. Get rid of any unpleasant odors. And take care of all of those little things that you've been avoiding, like tightening cabinet door hardware, squeeky door hinges, and cleaning the carpet. (I have a complete list of things to consider before putting your home on the market. Call or email me for a copy.)

3. Curb Appeal Sells. The majority of buyers in your price range will consider taking the time to see the inside of your house if the outside looks well-maintained. Keep the lawn mowed and green, trim the shrubs and trees (if needed), plant some colorful flowers. Consider re-painting the entry door, and spruce up the porch area, too. Because we all use the garage door as our main entry, sometimes you don't realize how badly the main entrance to the home looks. It's one of the first things a potential buyer will see.

4. Make it easy to show. Sure, it's inconvenient to keep your home in pristine showing condition, but we're all busy people. Buying couples often have trouble coordinating dual schedules, so the easier you make it for them to come in, the better. After working with a lot of buyers in this market, I can tell you this with a fair amount of certainty - If they can't get into your home at their convenience, they'll be looking at the one down the street.

And what about location? Sure, it plays a role, but maybe not as much as you think. Some School Districts used to be more popular than others, but with so many home schooled kids today that is less important. It's still a harder sell if you're on a really busy street or if you back up to a divided highway, but everything will sell if it's priced right and in good condition.

There are always a multitude of factors that influence buyers when they're looking for a home, but these ring true in most circumstances. For a more complete discussion of selling a home, feel free to call or email me.

Farmer's Markets

It sure is the time to start enjoying locally grow produce. We're lucky to have four Farmer's Markets in the area. Three of them are on Saturday mornings - Brighton, at First St. near the Millpond runs from 9am - 2pm; Hartland, at the old high school on M-59 just west of US-23, also 9am - 1pm; and downtown Pinckney near the Community Ed building, from 9a, - 1pm. In Howell, on Sundays, you can find the Farmer's Market adjacent to the Historic County Courthouse on Grand River from 9am - 1pm. If I don't have appointments scheduled until later in the afternoon, I like going to the Howell Farmer's Market on Sunday, then head across the street to Cleary's for an awesome breakfast buffett. There are things to do in downtown Brighton and Pinckney on Saturday's, too, so give yourself a little extra time to browse!

Livingston County Cavalcade of Homes

The Home Builder's Association of Livingston County is conducting its 14th Annual Cavalcade of Homes June 3-5/10-12/17-19th. Featured are 27 new construction homes, ranging in prices between $204,000 and $998,500. Included in the mix is a newly built Habitat for Humanity home valued at $100,000, but it is not for sale to the public. Also on the tour is a newly built luxury log home priced at $950,000.

This year the Cavalcade has a new partner - the Livingston Fine Art Association. Look for works from local artists in select homes on the tour. Tickets are $8 each and can be purchased at any of the open homes or a the HBALC Offices at 132 E. Grand River, Brighton.

For a $1 off coupon and other Cavalcade info, please visit their web page at http://www.hbalc.com/hbalc_cavalcadeofhomes.cfm

Modular Homes

Modular Homes
Modular homes continue to get strong consideration from consumers that wish to build a new home. But what, really, is a ‘modular’ home?

A modular is a home that is constructed to your chosen location’s particular building codes, but built in sections, or modules, at a factory. The sections are then connected to each other on-site. They are not to be confused with ‘manufactured’ or ‘mobile’ homes, which are built to a different code and are an entirely different type of housing.

A Little History
In 1910, a Bay City, Michigan company, Aladdin Homes, published a ‘catalog’ of kit homes. Others followed, including Sears Roebuck. GI’s returning after WW II created a high demand for housing and modular homes helped meet that need. An East Coast developer, Bill Levitt created modular subdivisions, including the rather famous ‘Levittown’, entirely comprised of modular homes.

Popularity
1 in 8 new homes are modulars and it’s estimated that there are over 22 million of these homes in existence in the United States. Although modular homes are sometimes looked down upon, they must have something going for them if there are this many out there!

Appeal
One of the biggest reasons for consumer interest is cost. Because modular home manufacturers build the components in a controlled environment (factory), they have a very skilled workforce using labor-efficient methods. They, unlike a consumer or even small builder, can purchase materials in bulk. Aside from the cost savings of buying in bulk, they can often get higher quality materials from suppliers because of their higher purchasing power.

Because these components are designed & built to be moved over long distances, many consumers feel that the basic home is built better than the on-site ‘stick-built’ home.

Production Builders and Panelized Homes
Production builders, those building high numbers in a given year, often use pre-assembled components to get the job started, especially exterior walls and roof trusses. Their skilled carpentry crews then do the interior ‘roughing’, and the rest of the house is pretty much built to order. While not a true ‘modular’, these builders know that they are getting a known entity with pre-assembled panels, and it reduces their on-site labor, too. Production builders do offer a degree of customization, but within certain limitations.

References for further information on modular homes:
The Modular Home, Andrew Gianino, 2005, ISBN:1580175260, Storey Publishing
The Quiet Revolution, Christina B. Farnsworth, Builder (National Association of Home Builders) v. 25 no8 (July 2002) p. 41-2
Modular Modernism, Matthew Power, Builder (National Association of Home Builders) v. 28 no2 (February 2005) p. 63-4

Welcome to Livingston Real Estate

I'm starting this blog to discuss Real Estate topics in and around Livingston County Michigan. Feel free to drop me an email with your thoughts, comments, and suggestions. I hope to add one or two discussion points each week.

Thanks for stopping by!
-Bob Smith
Preview Properties, Brighton, MI
http://www.RealEstateMich.com

Housing Statistics

I regularly update housing statistics for the Livingston County markets (by School District), as well as the South Lyon, Whitmore Lake and Milford areas.  Feel free to browse them on my business web site at < http://www.RealEstateMich.com>