Wifi Enabled Twin Tub Washer From LG

At last month’s Consumer Electronics Show (CES) in Las Vegas, LG introduced a twin tub washing machine.  The front loader has a bigger capacity than the smaller pull-out tub at the bottom.  This means you can wash your larger load of say, towels, in the top and maybe those pesky reds and pinks in the smaller bottom tub – simultaneously, if you like.

Ergonomically designed to decrease bending, a Turbo Wash system for better cleaning, and a wifi link that lets you upload custom cycles and monitor cycle status are a few of it's features.  You can get the complete story and specs here.

Image courtesy of LG.

Is Hiring A Property Manager The Right Thing To Do?

Over the last few years, a lot of consumers have moved out of their homes and decided that leasing it was a better choice than selling it at a depressed price.  Others have made a transition to year round living at a second home but felt it wasn't beneficial to sell and also considered leasing.  If you're lucky enough to get a good tenant, everything is fine.  But if you scrimped on screening, it may have created more trouble for you than it was worth.

Josh Lawrence of Beka Management is my guest blogger and he talks about some of these issues below.
photo courtesy of Danilo Rizzuti/freedigitalphotos.net

You Do What?

So you are a Property Manager…….Does that mean you fix toilets, chase down late rent payments and take phone calls at 3 a.m.? Well, not exactly. In fact, a good Property Management company can minimize these issues and become a great resource for any homeowner or investor.  

Many of the horror stories that we hear relating to rental homes are due to the poor condition of the property and poor tenant screening. The first question that you have to ask yourself when deciding to lease out your home is..........If I were renting would I want to live here? Don’t be afraid to spruce the place up a bit, provide new appliances, etc. This will only increase the rent value and the number of interested candidates. The second question to ask is how much do I need to rent it out for? Maybe you are an investor and looking for a certain ROI or maybe you have to cover your mortgage payment. Whatever the reason, you will need to come up with an amount and make sure that the markets rent values support your decision.

Ok, moving on. So you have decided to lease out your home. Now it is time to choose a Property Management Company. Here are the top 3 things to ask your Property Management Company!

1.      How do you screen tenants?

A good Property Management company will Verify Income and Length of Employment, SS#, Criminal Record, District Court Filings (Evictions), Rental History, Utilities in Collection, NSF Checks and Credit. By moving a qualified tenant into a property, it helps to ensure that rent is collected on-time every month.

2.      Are there any hidden fees?

Make sure to ask your Property Management company what there fee structure is. How much do they charge to find a tenant? How much do they charge every month as a Management Fee? Do they mark-up the maintenance? Is there a charge for a lease-extensions? Who receives the late fee? It is important for both parties to be transparent up front.

3.      How do I know that my property is being taken care of?

One of the most important things in Property Management is an “Inventory Checklist.” Make sure that the lease clearly states that the Inventory Checklist must be filled out and sent back to the management company within a specific amount of time. This allows for the condition of the property to be documented when a tenant moves in. When a tenant moves in they also should be required to provide a “Security Deposit.” The security deposit should be at least 1 month’s rent, but not to exceed 1.5 month’s rent.

The truth is, there are a lot of really great Property Management companies out there. Find someone who is passionate about Property Management and is excited to lead you on the journey! 

Josh's contact info is:

Josh Lawrence/Director of Properties and Business Development

Beka Management

P.O. Box 552, Walled Lake, MI 48390

Office:  248-363-0999  Cell:  248-505-1271
jlawrence at  bekamanagement.com
www.bekamanagement.com  

New Mobile Real Estate Web Site

I’d like to introduce you to my new mobile real estate web site.  You can visit my regular site on a desktop/laptop/most tablets in the usual way by going to http://www.RealEstateMich.com, but if you visit it from your Smartphone (and some smaller screen tablets), you’ll automatically be transferred to my new mobile site.  It’s been maximized for easy viewing and navigation on the smaller screen.

It doesn’t have everything that my legacy site does, but you can look at featured listings, do a full MLS search via the Internet Data Exchange (IDX) (this is what feeds Realtor.com, Trulia and Zillow, by the way) and you can read some of my consumer tip documents, too.  There is also an option to transfer over to my full web site if you wish. Or maybe you just want to check the most recent mortgage interest rates. You can do that, too. If there’s something you would like to see added, please use the ‘contact’ buttons to recommend an addition.

A colleague recently asked me why I would spend the time and money to develop a separate mobile web site.  My answer is that as more and more consumers use their smartphones for real estate information, it only makes sense to give them the best service possible.  Honestly, the cost including the real-time data feed is less expensive than my regular web site and in my opinion, it’s money well spent.  Anything that improves client communication and service is money well spent to me.

Please feel free to stop by and check out the new mobile real estate site.  I hope that you’ll bookmark it and use it frequently.  There’s also a link to my facebook page, and I would appreciate it if you stop by and give it a ‘like’.  You can easily contact me by email, text or voice call from the new mobile site with a single touch of the screen, too. 

I’d like to recommend Jake Freeland and MobileHippo for their innovative and affordable mobile solutions, especially for the real estate industry. While they’re a local company, I understand they provide solutions in other states, as well. If you’re interested in a mobile site for your business, you can reach Jake via email at Jake@MobileHippo.com or contact me for his phone number. Oh, yeah, and contact me from my mobile site and see how easy it is. 

Is There A Coffee Shop Etiquette?

The relaxed nature of a coffee shop is very good for certain things like meeting with current or potential business partners, discussing trends in your particular industry, or outlining a joint marketing plan. Most of us wouldn’t take a restaurant table for a long period of time, and certainly not without ordering.  Which begs the question of this post, is there a coffee shop etiquette? If there’s not, there should be.

As I was thinking about my behavior and experiences, I decided to poll some associates that frequent coffee shops as part of their weekly routine, either for business or otherwise. I was fortunate to have an opportunity for input from a couple of shop owners, too.  So let’s get down to the etiquette.

Don’ts

Do not assume that refills are free – even if the pots are available and in the open.  If the refills are free, there’s likely a sign stating it.  Coffee is expensive and there are very few bottomless refills places around.  Ask about refills when purchasing your first cup. Some shops offer refills at a lower price than the first cup. A related don’t is that you NEVER bring in your own food or beverages.

Refrain from turning up the volume on your devices. Use earphones or keep the volume low enough that the neighboring tables can’t hear it.

Don’t just show up with a larger group.  The magic number seems to be four. Larger than that and you should give the shop a courtesy call to make sure they are expecting you. Often they will reserve a space for you. If you plan to have regular meetings there, make arrangements with the owner. Some coffee shops have private meeting rooms that will accommodate up to 20 guests, but they need to be reserved in advance.

Do not abuse the wifi privileges.  Streaming music or videos can take up a lot of bandwidth and if everybody did it internet service would be lousy for all. Often there are small children in the shop with their family, so wait until you get home for browsing questionable sites, streaming video and playing online games.

Use the ‘right size’ seating. If it’s just you trying to check email or some quick facts, sit at a small table.  And keep your tablet/laptop/phone charged.  It is poor form to grab that booth for four just because you need the only available outlet.  Especially if the place is busy.

Do’s

Buy something.  Especially if you’re camping out for hours and hours. A purchase every 90 minutes or so seems to be about right.  And c’mon – make sure you leave a decent tip.  15% on a cup of coffee and a muffin or a bagel isn’t bad overhead for a temporary work space.

Recommend the shop to friends. Tell them about the wonderful atmosphere, friendly owner and staff, the great coffee and food.

Use your eyes and some common sense.  If the place is packed don’t linger for half the day with one small cup of coffee because you’re tired of working from home, Mr. or Mrs. Telecommuter. (See ‘Buy something’, above.)

Feel free to use your cell phone and be productive.  But try not to talk so loud as to annoy or aggravate the other patrons.  I use a noise cancelling Bluetooth earpiece, but even then I may have to step outside to hear a conversation well in a noisy environment. If you’re having a ‘sensitive’ conversation, it is likely better to step outside or converse from the privacy of your car for a while.

Coffee shops like being busy.  They try hard to make the environment inviting and open.  Like other businesses, they want repeat customers, and want you to feel at home. National chain shops are often owned by a franchisee that also lives in the community. It may be a ‘national brand’ on the sign, but it’s still a local business. And those owners often are connected to their regular customers through friendship, caring, and a desire to be of service to their community.

One successful businessman I know stops for coffee on his way to the office a few times a week. His visits fall more into the social category, but he has picked up some business by forming relationships with the shop’s clientele – even though it is not his primary purpose. His visits last less than an hour and he always buys something.

When in doubt, follow the Golden Rule – “One should treat others as one would like others to treat oneself.”

image #1 courtesy of kanate/freedigitalphotos.net; image #2 courtesy of amenic181/freedigitalphotos.net

Small Business Saturday – November 30, 2013Small Business Saturday – November 30, 2013

Back in 2010, the American Express Company started advertising a ‘small business Saturday’ on the Saturday after Thanksgiving.  The general idea was to use your American Express cards and patronize the local ‘Main Street’ businesses, rather than shopping at a big box store.  It was quite successful.

Since then, there have been a number of other ‘small business Saturdays’ at other times of the year.  With that history in mind, we now have another such day coming up on November 30^th.  Being in real estate, I see that there are many factors that keep a community strong and vibrant.  And honestly, nothing makes me madder than scraping off every penny by shopping online providers.  If your local business district isn’t healthy, your community is suffering. If your community is suffering, your schools will suffer, your property values will suffer, and a downward trend has been formed.

I make a point of shopping locally. Sometimes I pay a few pennies more for an item and I’m OK with that.  I’d rather do that than see empty storefronts on Main Street.  The trade-off in service, return policies, and attention certainly make up for the small premium I pay when I shop local. And that’s not to say that there’s always a premium. Many local businesses will match prices – especially if you ask.

 So here’s my request to you.  This year, on Saturday, September 30^th, be sure to do some shopping at your local small businesses.  Maybe it’s a jeweler, a specialty shop, or a boutique.  Maybe it’s a wine store, a meat market, or a bakery.  If you value that kind of diversity in your local community – support it. I’ll give up a $5 specialty coffee once a week to spend a few extra bucks at a small local business. How about you?

Drones and Real Estate

This article about an experimental drone system to deliver Domino’s® Pizza caught my eye.  Tongue-in-cheek, I wondered if the pizza was still hot when delivered.  But it made me think about a short excerpt that I saw back in March about drones (technically called ‘unmanned aerial vehicles, or UAV’s) and real estate.

A few real estate professionals have experimented with camera-carrying drones to get wonderful photos of their listings.  And why not?  In the past, if you had a large parcel of land or a magnificent estate, agents would hire small airplanes or helicopters with photographers to get photos that would show the property at its best.  Now, with drones, it can be done quicker and more affordably.

Ah, but there’s a catch. Isn’t there always?

Local law enforcement and the Federal Aviation Administration (FAA) have ordered some drone operators to cease, citing lack of regulations for commercial use - and this is considered a commercial use.  Congress has ordered the FAA to have a plan by September 2015, although it’s expected that there will be guidelines for units that weigh less than 55 lbs or less earlier than that, perhaps by the end of this year.

Still photos are easier to get with a UAV than video footage, due to motion stability issues.  A quick internet search revealed that you can buy a drone from around $100 up to over $5,000.  Some Realtors® cited in the articles say that they paid $700-$900 for theirs.  I guess it’s OK for consumers, but for now, drones and real estate is off limits.

Domino’s® Pizza, which stirred me to write this blog entry, is an early adopter of technology.  They were the first to use an insulated heat bag to keep pizza warm, developed the first corrugated pizza box, and later started the online pizza builder and order tracking service.  For the record, I have no affiliation with them and consider their product ‘alright’.  Not the best pizza I’ve ever eaten, and certainly not the worst.

photo courtesy of victor habbic/freedigitalphotos.net

Expiring Mortgage Debt Forgiveness Act To Increase Strategic Defaults?

Last December I blogged about strategic default.  That is, consumers who walk away from their mortgage even though they have the ability to continue making their payments. It results in foreclosure, of course.

If the Mortgage Debt Act is allowed to expire by a deadlocked Congress, will this encourage more struggling homeowners to walk away instead of trying to sell their homes by short sale?  Currently, homeowners don’t have to pay tax on the forgiven debt.  If the Act expires, the forgiven debt will be treated as income (a ‘gift’) and will be taxable.

In September (2012) Housing Wire reported that 1 million Home Affordable Modification Program (HAMP) loan modifications were cancelled by lenders after their 3 month trial. HAMP terms are likely the most appealing to homeowners having financial difficulties – if they qualify. The government predicted this program would help 3 to 4 million homeowners, but as of September 2012, only about 825 thousand made it past the three month trial period. Less than $3 billion of the over $29 billion set aside for this program was actually spent.

Home Affordable Refinance Program (HARP) and lender-based refinances are also options, but they also have requirements that may be tough to meet or the savings may be minimal. That’s why short sales remained attractive to many underwater homeowners.

Like all things financial right now, these are complicated and interwoven subjects, but it seems possible that the expiration of the Mortgage Debt Forgiveness Act will have the effect of causing more strategic defaults and therefore foreclosures.  Write your legislators and tell them to extend the Act today.

Confused about short sales, or need to explore the options for the sale of your home? Give me a call for a no-pressure appointment.

Holiday Home Maintenance Tip – Garbage Disposals

The average life expectancy of a garbage disposal is approximately 10-12 years.  I’m guessing that most of us have never read the ‘owner’s manual’ for our disposal since it’s already installed when we buy the house. These units typically get a work out over the holiday season and that’s absolutely a horrible time for them to fail.

I’m providing a link to a short (97 second) video, courtesy of American Home Shield, the folks that sell Home Warranties.  This one is about maintaining your garbage disposal and is worth watching.

If interested, you can find the model of your unit on the disposal tag and search online to find the complete manual.  But if you don’t want to do that, here are a few tips to keep it running smoothly. 

DO NOT:

·         Put fats, greases and oils down the disposal or try to grind potato peels and coffee grounds  – you’re almost sure to clog your drains

·         Put large amounts in the disposal at one time – that can clog things up and overwork the motor

·         Grind large bones (beef, pork)

·         Use harsh chemicals like bleach and drain cleaners – they’re corrosive and can damage blades

YOU SHOULD:

·         Run the disposal regularly to keep parts moving and prevent corrosion

·         Cut big items into smaller pieces

·         Use cold water, not hot, when grinding food

·         Occasionally grind citrus peels to keep the sink smelling fresh (avoid using chemical ‘sweeteners’)

There is a range of opinions on using a disposal with a septic system.  These tend to be strictly ‘yes’ or ‘no’, but as long as the items are biodegradable,  don’t have fats, oils, or greases in them, you may be alright – as long as you’re not grinding a lot of material on a regular basis.  A good alternative is to compost most of your food waste and keep the disposal volume low when you’re on a septic system.   

In any case, you should expect that you will need to pump your tank more often if you’re using a garbage disposal even on an infrequent basis.  My County Health Department (Livingston County, Michigan) recommends that you DO NOT use a garage disposal with a septic system. Here’s their guide on using septic systems.

I’m also providing a link to a short article on disposal maintenance and lifespan from the good folks at ehow.com.  If you read these few short items, you’ll have a great idea of how to keep your disposal running well and extending its useful life.

 

And if you're looking for a home - with or without a disposal - give me a call!

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

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.

Brighton Michigan Housing Market Snapshot-Nov 2011

Brighton, Michigan is located in Livingston County, roughly at the crossroads of US-23 and I-96. It is between Flint and Ann Arbor on a north-south line, and between Lansing and Detroit on an east-west line. The Brighton area consists of the City of Brighton as well as parts of the surrounding Townships of Green Oak, Hamburg, Genoa, Hartland and Brighton Township. Homes in Brighton Michigan seem to consistently be more desirable than many other homes in Livingston County.


Brighton has a vibrant downtown area with a number of restaurants serving a variety of cuisines, small specialty shops, a large children’s play area - the Imagination Station - and is centered by the Mill Pond. There is a gazebo at the Mill Pond, as well as a renovated Village Cemetery, and if you feel like walking you can stroll on the boardwalk and ‘tridge’ to get around the downtown area. There are many civic events in the downtown area all year round, and commercial interest remains very high for restaurateurs, office space and retailers.

This snapshot will be for homes in the City of Brighton. Right now, there are 132 active residential properties. They have been on the market for an average of 123 days and range in price from $24,000 at the low end, to $364,900 at the high end. The average list price is $149,482 and the median list price is $146,250.

In the last 12 months, 72 homes have sold ranging from $25,100 to $390,000. The sold properties were on the market for an average of 117 days and the average sales price was $144,348 and the median sales price was $143,500.

Brighton has a variety of home style and ages. Established neighborhoods have homes going back 100 years right up to newer subdivisions built within the last 10-15 years. All homes in the city limits have municipal water and sanitary sewer, and all are on paved roads.

Half of Foreclosure Aid Money Not Spent

Earlier this month, USA Today reported that over half of the $1 billion allocated to assist unemployed and underemployed people stave off foreclosure will not be used. The Emergency Homeowners’ Loan Program would have given up to $50,000 loans in 32 states and Puerto Rico.

Only 11,832 applicants of the total 100,000 were conditionally approved. It took almost a full year for the program to start taking applications, which left only a three month window in which to apply and be approved.

Under the terms of this program, homeowners could have received up to $50,000, which would be forgiven if they stayed in their home for at least five years. The program, administered by the U.S. Department Housing and Urban Development (HUD) was made possible by Wall Street reform legislation. Critics say that HUD added eligibility criteria that slowed the process.

A HUD spokesperson admitted a longer than anticipated ramp up, but also said the eligibility criteria defined by the law that created the program disqualified a higher than expected number of applicants. You can read the entire article here.

Market Notes – August 25, 2011

I just received the August survey results from Campbell/Inside Mortgage Finance, a firm that surveys agents and brokers from across the country. This is one of many Real Estate-related surveys in which I participate. Their results are broken down both in general groups of buyers and/or sellers and by geographic region.

scottchan / FreeDigitalPhotos.net

Last week my blog entry, “July 2011 Market Data” reported that the number of local cash sales is way down compared to 2010. This most recent national survey reports that July 2011 investor purchases are at a 12 month low. This survey also says that about half of investor purchased properties in July 2011 (48%) will be rented out, compared to 28% in July 2010. Is that due to tighter loan requirements for first-time buyers (investors wanting to re-sell have a worse market), a lack of confidence in the economy by buyers, or something else? It is a big difference in numbers.

Some survey comments conclude that investors are acting decisively while first-time home buyers seem to be demonstrating fear and indecision. The rental market in my area is robust, so perhaps investors are leveraging those conditions.

The sales price to listing price ratio for our region, the Industrial Midwest (MO, IN, IL, OH, MI) shows that damaged foreclosure (REO) properties sold at a 91% ratio. That means a $100,000 listing sold for $91,000. Move-in condition foreclosure homes did marginally better at a 93% ratio, short sales sold at a 91% ratio and non-distressed homes were at 94%.

Remember that homes in better condition sell for more money, too, so while the percentage differences are small, the ultimate purchase prices are much wider. The average sales prices on these categories are: Damaged REO - $57,938, move-in condition REO - $114,015, short sales - $150,493, and non-distressed homes sold for an average of $205,604.

If you are looking for a house, a foreclosure or short sale can be a great bargain. Just know the difference in timelines (and processes) to close, and also know that you still pretty much get what you pay for. A $57,000 house will need a lot more work than a $114,000 house.

As always, if you have real estate questions, feel free to contact me.

Livingston County Homes - $100K or Less

I still chuckle when I see marquee signs on Real Estate companies that say things like, “87 homes under $100,000 – Stop In For A List”. I chuckle not because they provide the list, but because the numbers can change by the day, even by the hour. New listings are coming on to the market constantly. Agents can enter new listings into the MLS 24 hours a day. And of course homes that have just gone under contract will fall off the list, too. If you're working from a list prepared two weeks ago - good luck!


But I recognize that it is a popular price range, so I thought I’d do some research as of exactly 06:52 this morning, on Tuesday, July 26, 2011. Here’s what I found.

In Livingston County there are 135 single family residences (SFRs), or detached homes, for sale in this price range. The lowest is $19,500. Located in Unadilla Twp in the southwestern corner of the County, the MLS remarks say it is not habitable and is just a shell. It was built in 1900 and is 1000 sq ft in size on a 100 x 131 ft lot.

There are also 42 condominiums for sale in this economical price range. The lowest priced is in Hidden Harbors on Green Willow St., just off Grand River across from Meijer’s in Brighton, listed at $23,900. They are smaller units in a ‘stacked’ configuration, like an apartment building.

First time home buyers looking at the low end of the housing spectrum should consider a couple of things before they start to look. First, the lower the price, the more likely it is that the house will need significant dollars to repair, even if it you can do it yourself. So when you get pre-approved (I recommend you do this before you ever look at a house), talk to your loan rep about rehab loans. If you qualify for FHA financing, there are FHA rehab programs out there, the 203K and the 203 Streamline.

The likelihood of needing repairs is quite likely and sometimes you can do repairs yourself, other times you must hire a contractor. Be prepared.

Condos are sometimes in better condition because the Condo Owners Association maintains the exterior and grounds, but occasionally there is significant interior work to be done. You also have to find out if the condo community is FHA certified. Your loan rep or Real Estate agent can do that for you. If you have to go FHA financing, there’s no point in looking in communities that aren’t FHA certified.

Investors with cash are definitely the ‘king’ for choices in the low end of the housing spectrum. They are often quite astute with estimating repair costs and they can quickly qualify or disqualify a property for their model of either renting and holding or repairing and selling. When estimating your budget, don’t forget about property taxes, homeowner association fees and maintenance. It’s always good to be able to have six months of rent in reserve for repairs and emergencies, too.

If you’re thinking about a low priced property, work with an experienced agent. I’d be happy to talk to you about your plans and formulate a search just for you.

Condo Living At It's Best! - 7493 Radcliffe, Brighton



You'll love life at Lake Edgewood Townhomes. Conveniently located just west of the City of Brighton, the lower Township taxes, reasonable COA fee and convenience to shopping and transportation corridors will all be yours at 7493 Radcliffe in Genoa Township.
Don't let the unassuming front view fool you. Walk in to a vaulted ceiling living room with a floor to ceiling stone fireplace treatment. Enjoy the four season sun room with view backing to woods.  Two bedrooms and two full baths with an ample sized kitchen complete space. First floor laundry facilities are available, although currently located in the walk out basement, which is rough plumbed and studded - ready to finish (blueprints available).

Minor work being completed, call agent for details.

Livingston Median Sales Prices Up!

The June 2011 statistics from RealComp II,Ltd., our local multilist system (MLS) are available.

The glaring statistic I see is that Livingston County is faring a bit better than the Metro Detroit tri-county area. Detroit, Oakland and Macomb County aggregate figures indicate a 13.3% median sales price drop, but Livingston had an increase of 5.4%.

Also, Livingston County homes are selling faster. A full 68% of homes that sold actually closed within 90 days, and almost 76% closed within 120 days. Condos reported similar time frames at 67.5% for 90 day closings and 81% for 120 day closings.

The sheer numbers of listings have dropped dramatically, too. With less inventory, buyers are being more aggressive when they find a property they like. Let’s look at condominiums, which typically have a higher inventory to sales ration that detached single family homes.

In June 2009, there were 321 units available with 21 sales (6.5%). In 2010, that figure increased to 31 sales with a significantly lower inventory of 179 units available (17.3%). This June, there were 128 units available and 37 sales, for 28.9% of inventory selling.

Of course condo living doesn’t suit everybody’s life style, but for those that are a good match, they are a great option. Not sure if you’re right for condo living? Give me a call to discuss the pros and cons. Even if you are a good match for a condo, you may not be right for a certain community. My 13 years of experience in Livingston County can help you focus your search to a community that is a great match for you.

Lower Priced Homes Predicted To Drop Value Faster

A new study says that lower priced homes will have steeper price drops than their higher priced counterparts, according to a report by DSNews.com.

Already discounted heavily, many of these lower end properties are ‘distressed’. Before the housing market tanked, this market was robust due to the proliferation of subprime and ‘teaser’ mortgages and lower down payments. With the tightening of credit conditions and lending requirements, this market has been hit harder than the higher priced homes that are generally dominated by repeat buyers.

But the higher priced homes face valuation drops, too. The analysis was prepared by Capital Economics, a macro economics consultant that provides international and property research. Their methodology used existing Standard & Poors Case-Schiller data that was weighted for 16 major cities and then created a national housing model. Their reports are available only on a subscription basis.

Feel free to call or email me if you have questions about the local Real Estate market. Get quick updates on my new blog postings by visiting and 'liking' my facebook page.

Our Real Estate Market Summary-June 2011

Locally, there is still a lower inventory, especially in homes under $180,000. The best homes (best condition at the best prices) go very fast. TIP: Get daily listings from your agent, drive by interesting properties quickly, and have your agent get you inside as soon as possible. If you like it, write an offer immediately or risk ending up in multiple offer situations or losing it before you have a chance to bid.


Interest rates remain attractive, but some lender programs are being modified to require either a larger down payment or larger ‘up front’ fees to go with 100% financing programs. Appraisals are also uncovering more issues with homes for sale and once a loan goes to the final underwriting process, it is not uncommon for even more issues to be raised. Lower income buyers in Livingston County gravitate towards the USDA Rural Development loans if they qualify, based on income. TIP: Work with a good lender to determine the very best loan instrument for you, provide them with everything they need to give you a firm pre-approval. This will prevent unpleasant surprises once you find that perfect house.

You can see that this advice is heavy on both the time and service issues. Do EVERYTHING that you can do to position yourself to move quickly in this market. I have no magical crystal ball, but while prices seem to be still trickling downwards, many are saying that the glass is half full – and getting fuller by the week. If that’s true, this is the time to buy. TIP: Work with industry professionals that are responsive to your needs and those that will have time for you. Part of that is being committed enough to the process to warrant their time commitment to you. Select one Real Estate agent to work with, and one lender, too. Get them the info they need to do the best job for YOU.

Best Methods To Get The House You Want

Here is a quick outline that will help you become a successful home buyer. There may be other things that would help and other agents may have different strategies. These work well in my experience and specifically in today’s market.

Be Pre-approved. Not pre-qualified. Get your credit score pulled by a lender, supply them with all of the documentation they request and get a firm pre-approval. Talk to them about refreshing it if you don’t find a house within 45-60 days and how these subsequent pulls may or may not affect your credit rating, too. It’s alright (even preferred) to interview a few lenders before you sign on the dotted line. Like the commercial says, “Just Do It!” if you’re serious about buying a home. Note: If you’re primarily interested in foreclosures and the property will be your principal home, talk to the lender about rehab loans. Many foreclosures are not financeable in their current condition and will require either a cash offer or a rehabilitation loan.

 Commit to a Realtor. Again, interview a few. Realize that not many will invest a lot of time into you if you’re not pre-approved and serious. Once you commit, stick with them and be open if there are things you don’t like. Sometimes it will be their way of doing business, other times it will be the market dynamics and you’d experience with any agent.

 Get daily listing reports. New listings, listings that have dropped into your price range, houses back on the market. The good ones are going fast and you need to be ready to roll.

 Drive by the interesting ones within 24 hours. Don’t wait or you may get shut out or put yourself in a multiple offer situation. Be sure your agent will have time to get you into homes within 24 hours of your request.

 Don’t be afraid to pull the trigger. Once you see a home you’re interested in, write the offer. If you’re in the lower price ranges (under $200,000), you will possibly be only one of multiple offers. Being pre-approved gives you a step up over casual buyers. Write that offer fast.

 Don’t lowball. If it’s a total dump, that’s one thing, but if it’s habitable, write a realistic offer. After you’ve seen a number of properties you’ll have an idea of a fair price for the house and its condition. Lowball it and you’ll open the door for a competing offer.

 Be prepared to get pre-approved by a lender chosen by a bank if it’s a foreclosure. That’s not uncommon. You don’t have to use them for the loan, but they want to make sure you’re able to perform financially. This can take from a few hours to a couple of days.

 Have an inspector chosen. One way to make your offer more appealing is to stipulate a shorter inspection period, say 5 days from date of seller acceptance. Ten to fourteen days sounds a lot more like you’re playing games to a seller –especially if it’s a bank-owned property. Discuss with your agent the typical inspections for the area. Home, sure. Well and septic, maybe. Radon, perhaps. There could be others.

 Make a ‘real’ earnest money deposit. Don’t do the $500 gambit. Put down a minimum of $1,000. I recommend that you put down 2-3% of the offer price. If the offer doesn’t fly, you’ll get it back. If the inspection is bad, you’ll get it back. If all is well, that money is applied to your down payment and closing costs.

 

The key is to fill in as many blanks as possible before you even look at the first house. Put yourself in position to move quickly and definitively. It will reduce stress and let you focus more on making good decisions. If you’re looking for homes in my market areas, feel free to contact me for a no obligation discussion.

 

Average Down Payments Reported; Rents Are Increasing

The National Association of Realtors (NAR) recently released a number of economic reports. One summarized the average down payments provided by home buyers for different parts of the country. (We’re in the East South Central, along with WI, IL, IN and OH.) Our area works out to be in the 5% zone (lowest in the country), but the figures vary greatly and the national average is 8% down payment. Middle Atlantic States (NY, PA, NJ) led the crowd with an average 12% down payment amount.

I know from working with local lenders that even the ‘affordable’ housing purchase programs are now requiring some form of down payment or increasing the percentage needed to purchase. 100% financing may be on the way out, and that is probably a good thing.

Another recent report highlights the fact that nationwide rents are increasing. The report does not specify amounts, but merely indicates that monthly rentals are getting more expensive. With the foreclosures that are still occurring, this is not a surprise. Those folks will have a short term reality of renting for the most part.