Strangers In My House?

It's something that many homeowners think about when they list their home.  We're all uncomfortable with total strangers coming into our personal space.  In most cases there are no issues, but a few simple precautions will help to ensure that things proceed smoothly.

First, nobody will enter your house for a showing unless they are accompanied by a licensed agent.  There are very few agents that will just take a phone call, drop what they are doing and meet a new prospective 'buyer' at a house.  I want to talk with them to find out their goals, verify that they have a legitimate lender pre-approval (which entails them divulging a lot of personal info), and meet them in person at my office first. I also like to talk to their lender to be sure we're on the same page. In short, I want to know who they are and that they are real people, not an AKA (also known as).

There are still times when some agents take short cuts and don't get to know a buyer as well as they should.  Here are a few simple tips that apply to any home seller and will help you to keep your home safe.

Jewelry - don't keep grandma's expensive antique broach out in plain sight.  Keep your jewelry hidden.  If you can, store it in a safe deposit box until the house is sold or just keep the items you need for the immediate future.  The same applies for cash - keep it very well hidden.

Prescription Drugs - I encourage you to keep your preescriptions out of sight. This may mean changing your daily habits for a while, but the old maxim 'out of sight, out of mind' does come into play. If you have children livng at home, you may already have this area covered.

Personal documents - be sure that you don't leave a bunch of monthly bills or personal douments out in plain view to deter identity theft.  File your documents promptly, or shred paper bills if you pay and file things electronically.

Keys - don't keep a lot of extra keys on the coat rack peg or table in the foyer.  I know we occasionally leave a shed or pole barn key for prospective buyers to enter an outbuilding, but make sure that your house keys are secure.

Doors and windows - it's rare for buyers to open and close windows, but it may happen.  A good showing agent will always make sure that all doors locked when they leave your home, but on occasion they may get distracted.  Boisterous or very active children accompanying their parents, an aggressive time frame to show multiple properties (especially in the winter months when daylight time is reduced) or a host of other factors may come in to play.  Be sure that you check your doors upon return.

Agents will not allow a prospective buyer to open dresser drawers, but you can expect a look at the closets and pantry. Sometimes kitchen cabinets are opened to see what type of storage systems are installed.  Expect them also to look through the garage and enter any mechanical or store rooms you may have in the basement.

These few simple precautions will help you keep your home selling experience a safe and happy one.  If you're thinking about selling your home, consider calling me for a no-pressure appointment to determine its value and estimated time to sell. I'm a full-time real estate professional. Real estate is my passion.

image courtesy of vichi81 freedigitalphotos.net

What’s Your Home’s ‘Sell By’ Date?

Sell Your Home

My wife and I sometimes have a discussion about dates on food items.  There’s a ‘sell by’ date, sometimes a ‘use by’ date, even a ‘best if used by’ date, depending on the product.  She wants to dump them on that date, I tend to keep using them for a couple of days beyond.

Sometimes it’s aesthetic, sometimes it’s for safety.  The ‘Sell By’ date is largely for stores. It helps them to pull slow moving items that may have reached their peak for freshness, consistency and taste.  But often, you can still consume those products beyond that date. Note: I wouldn’t recommend trying that with the milk two weeks later, though. My wife and I agree on that one!

Successfully selling your home can have many nuances, too.  Price and condition are two biggies.  Upgrades and features (or amenities) are some others.  Add to these factors more subtle influences like color schemes, quality of that new carpeting, floor plan and traffic flow, and professional staging.  All can play a role in the sale of your house. Small things like dishes in the sink or laundry hampers overflowing can also detract from an otherwise acceptable home.

Regardless of the issues above, if you price your home more than a few percent over the market value, it will likely not sell. Or it will take longer to sell and will sell for less.  So when I go on listing appointments, I like to ask, “What’s your sell by date?”  Most people have an ideal time to be in their next home. It may be for work purposes, to be reunited with family members by an important date, or even related to a seasonal change.

It’s ironic that sometimes when you price a little bit low it’ll sell for more.  How can that be?  Because buyers are very attuned to the real market value for what they seek.  They’ve been looking at listings, viewing homes, and doing their homework.  They can make the mental adjustments for a location liability (backs up to rail road tracks or highway), school system (good but not the best rating), and distance to the interstate and shopping.  And they can do it quickly.

When an underpriced home (even slightly underpriced) hits the market, buyers will jump on it. Multiple offers are not uncommon.  And while it’s rare to get more than 5-6% above listing price, I’ve had a couple of sales this year that were in the double digit over list price range. If you want to move sooner rather than later, you should be more aggressive with your pricing – and that DOES NOT mean you’re giving your house away.

Sellers in no particular hurry often make a bigger mistake by “trying it out at a higher price,” thinking they can reduce the list price later. By then, buyers are thinking there’s an issue with the house and will not perceive it the same as when it’s new to the market.  Consult your real estate professional to arrive at the correct pricing to get your sale completed by your “sell by” date.  And if you need help with determining that value, I’m happy to assist.

image courtesy of Stuart Miles, freedigitalphotos.net

Buy A New Or Existing Home?

Build or Buy Existing?

That question doesn’t just apply to buying a car.  Part of the American Dream, for some people at least, is to own a new home. New, as in just built.  Certainly there are benefits and disadvantages to either – a new or existing (used) home.  Let’s look at a few of them.

Existing homes.  Depending on the age and location, it could have been built with better materials, exhibit more true craftsmanship, and perhaps have architectural ‘character’ and features that are all but impossible to replicate today. And don't forget about mature trees and landscaping.

Down sides might include a lower energy efficiency level, the possibility of needing extensive updates and difficulty finding similar building materials when you do modifications or repairs. The task of modernizing a very old home to today’s standards while retaining its original charm can require a lot of planning and effort. In most cases it is a labor of love.

New Homes.  Certainly a big plus is the ability to make some decisions about options, color schemes and perhaps even features (within certain builder parameters). Hazardous materials like lead-based paint will be moot, and you’ll likely have a robust electrical system for today’s living. Two and three car attached garages and plenty of bathrooms will not be uncommon, either. Many young families like living with similar aged households because both they and their children will develop friendships nearby.

Negatives will include the cost of landscaping, living with construction noise, traffic and debris until the neighborhood is built out, and if you’re an early buyer you will find it difficult to compete against the developer if he’s still selling ‘new builds’ when you decide to move.

There is no global best choice.  It will really depend upon your motivations, goals and desires.  While this is not a comprehensive listing of the benefits and disadvantages of either type of home, I hope it gives you something to think about.  Construction is starting to perk up in the area. 

New South Lyon homes are being built with greater frequency, as are homes in the Brighton and Howell areas. If I can assist you with your home search, feel free to contact me!

image courtesy of phanlop88, freedigitalphotos.net

Long Term Care Patients Can Keep Their Principal Residence Exemption

courtesy koratmember
freedigitalphotos.net 

Michigan’s Public Act 324 of 2012, which became law October 9, 2012 allows for retaining the Principal Residence Exemption (PRE) while in a long term-care facility if they meet certain conditions.  There have been instances where a homeowner lost the PRE and had to pay higher property tax rates because they were in rehab or couldn’t live alone for an extended time.

This bill allows them to keep the lower property tax rate if their intention is to return, as long as they meet all of these criteria:

They must continue to own the property; they may not have established a new primary residence; they provided for the maintenance of the property while in a nursing home or assisted care facility; and the property was not occupied, or leased, and wasn’t used for any business or commercial reasons.

This bill was introduced by Senators Caswell, Nofs, Hildenbrand, Robertson, Jones, Rocca, Hansen, Marleau, Colbeck, Bieda and Kowall.

Text of the full bill can be read here.

If you're thinking about selling a home or land in Michigan, give me a call.  I'm a full-time real estate professional with 15 years experience.

First Time Buyers Drop But Still Significant



Courtesy of NAR

The National Association of Realtors® (NAR) has an Economists’ Outlook Blog.  Yesterday, it posted an article that claims 32% of all September sales were by first time buyers.  For some time, that figure has trended closer to 40%, and was at a 50% level in 2009.

The number of cash sales in this buyer group was up, too, from 8.7% in August to 11.4% in September.

First time buyers have it tough.  Mortgage financing is harder to obtain, government loan (FHA and USDA Rural Development Program) underwriting is more tedious, distressed home sales take longer to complete, and investors have often picked over the lower priced listings already. That being said, they are still a significant part of the buyer pool.

This information comes from the monthly NAR Realtors® Confidence Index survey for September 2012.

If you're looking for a home in Brighton, Howell, Livingston County or the surrounding areas of West Oakland and Washtenaw County, call me.