Great Deals

Money is tight for a lot of folks. Here are a few great deals that
I've found in the Livingston County area, which mayhelp you stretch
your dollars.(note:prices below are correct at the time of this blog posting-check
for current prices before driving to them.)

Hair cuts/hair care.Brighton School of Cosmetology offers $6 basic hair cuts. Some fancy ladies treatments may be a bit more but are far cheaper than the local styling salon. They also do manicures and pedicures. Students are doing the work under the suprvision of their instructors. Disclaimer: What's left of my hair is definitely 'low maintenance'. I do know other guys that have more challenging styles who think the service and value are definitely here. It's worth a look. Walk-ins only,approximate hours are 10am-3:30 pm. School is closed on weekends, Holidays and days when Brighton District Schools are closed. 10543 Citation Drive, behind the Kensington Ice House, off Grand River just
east of US-23.

Golf.It's hard to beat these two for a driving range. Oak Valley
Entertainment at 10910 Whitmore Lake Rd, Brighton 48116 (just
north of M-36), has $9 large buckets (90 balls). They use higher end
balls which are washed after being retrieved. Tuesdays between 11 am
and 2:30 pm the buckets are half price! Pro shop, instruction, other
promos - see their web site.

Chemung Hills Golf
Course has $6 large buckets and $3 small buckets all of the time.
What a great value! They have Junior Golf lessons some mornings from
9-11am, so the range may be closed at those times - call ahead. Also a
pretty good rate for 9 holes of golf on weekdays, just $15 with a
cart.

Faulkwood Shores Golf
Club has a very nice course and great prices, too. 9 holes
walking is just $12 and they have specials that are even better.
Example - July 2009 9 holes walking price is just $5!!

Movies.MJR" Theatres
Brighton have some great reduced rates. Fri-Sun before noon,
tickets are just $4. Try the $4.50 Twilight shows (4-6pm) if you
can't get there before noon.

Building Supplies/Furnishings.Habitat For Humanity, 7198 Grand River Ave, Brighton
48114,has a home center where they sell surplus building and hardware
items for very affordable prices. Some furniture is also in the
showroom. Tile, wallboard, light fixtures, cabinets, appliances - you
name it. If your budget is tight and you have a remodeling project
planned, it's worth a look. Hours are 9-5 M-F and 9-2 Saturday.

General Entertainment. Brighton Kiwanis have free Sunday evening concerts at the gazebo in downtown Brighton through August 30th. Bring your own chairs. Varied entertainment (musical), local restaurants are open. Enjoy!!!

Livingston County Summer

Plenty to do locally this summer! This weekend's Michigan Balloon Challenge had great weather. I heard people all around Brighton and Howell talking about either being there or planning to visit. Next up is Brighton's Independence Day Parade on the 4th, now being administered by the Sunrise Rotary Club. Many thanks to the Boy Scouts for handling this event for so many years.

A relatively new addition to the parade is the Hungry Duck Run, actually two runs - a 5K (3.1 mile) and a Half Marathon (13.1 miles). The Sunrise Rotary started this a couple of years ago as a fundraiser for Gleaner's Community Food Bank, and it's great to see it be successful. The name 'Hungry Duck' also fits in with the Rotary's duck race at the Brighton Millpond after the parade. Great addition to the Holiday's festivities.

Next up will be the Howell Melonfest, August 14th-16th.

Dealing With A Computer Failure

In July of 2007 I had to replace a ‘legacy’ laptop. Purchased new in 2001, it served me well. I had indications that it was flaking out and I backed up my data religiously. I didn’t expect another issue like that so soon. The new laptop was great and I was happy.

The laptop that replaced that first one started having issues, too. I found out that there was a recall on it, but the only recourse was to send the entire machine in. Service techs told me it would be “three or four days”, but I know better than that! There was no option for having parts shipped to a local repair shop - my laptop would have to go on the road.

Just then, it started working well again. I thought I had scared it into submission. But I purchased a Seagate FreeAgent Pro backup system just to be sure. It installed easily and did instant backups. If I created or saved a new file, or altered an old one, they were shipped to the backup drive instantly.

I’m so glad that I did that. I had an irreversible failure on the replacement laptop and I just can’t be without a computer for business purposes. So I went out and bought a new one. The retail outlet installed the Office 2007 software that came with the laptop as well as the Norton 360 anti-virus program, and they created the three recovery CD’s for me, too. If you’ve ever created these CD’s you know that it takes a really long time.

So I have a current and complete backup. I can at least see and answer email via my smart phone. Hey, this won’t be horrible, I thought.

I had to purchase Outlook 2007, but the local repair shop I use said that they would install Outlook and transfer my Outlook files for me and I would just have to configure the email settings. No big deal, I thought. While they were doing that, I figured I’d have them take all of my data and picture files over to the new machine, too.

Because of the enormous amount of files and pictures (hi res, of course) that took over a day and a half.

I got the machine back, configured Outlook and started ‘catching up’. Some emails were bouncing back, but not all. The error message indicated that I had a configuration error, but my checks didn’t catch it. Earthlink web support found it quickly and fixed it via ‘remote control’. You give them permission and they connect to your machine via the web and can poke around and change settings. Very cool and very fast.

Then, I discovered that much of my software wouldn’t re-install onto the new machine. The reason? The old system was Vista 32-bit, the new one had Vista 64-bit OS. Great. Even though there is a basic pdf writer on the system, I needed something a bit more robust, so I had to purchase PDF Creator. My Corel Paint Shop 2X (I still had the license key) wouldn’t take the key because it’s a different product (32 vs 64 bit versions). Great.

And I was having trouble finding some of my old software CD’s, too.

At least all of my web based systems worked and I can do about 85% of what I need to do immediately. The upshot is that my laptop failed about 6pm Tuesday night. I spent that evening messing around with it. I went out and got a new laptop Wednesday morning, but couldn’t pick it up until about 4:30 pm because of the setup/install. I went home to install some of what I could, catch up on email, and make an appointment with the local shop for the next (Thursday) morning.

They had the laptop for the Outlook install and data transfer until 7pm (closing time) Friday night. So I lost three full business days and still am not back to where I was with the software.
I also found out that my HP C4100 All-In-One printer/scanner/copier wouldn’t work with Vista 64. Great. Luckily the HP C4400 All-In-One that I had at my office was OK, so I just switched them.

And I thought that I was prepared. Sure, I could jump on a colleague’s machine for a quick venture into my web-based business systems, but it’s not the same when you’re used to working on your own timetable.

After this episode, I thought I’d share some tips for your computer readiness.

First, always, always, always have a good, complete and current backup. Spend the money to do this. If you can’t set it up yourself, pay somebody to do it for you. Make sure that it is working.

Second, don’t be afraid to burn old documents to a CD or DVD for long-term storage, or to move them to an auxiliary (external) drive. If you need to restore your data that will cut down on the time frame involved.

Third, have a central location in which you store your software CD’s, licenses, etc. If you need to setup a new machine you don’t need the distraction of looking for your software, too.
Fourth, when selecting the new machine, understand that there will be other expenses. You may need to buy new software (or at least newer versions). You may need to buy new hardware, like the printer I mentioned above.

Of course, you can try to ‘match’ the operating system. But I believe you have to stay current because technology changes so fast. It makes no sense to me to buy ‘old tech’. I will send in the broken laptop for warranty work and it will go to my wife upon its return, along with the HP C4100 series All-In-One unit. Now I need to get new software to synch with my smart phone and I’m back in business.

You’d Better Believe It’s A Tough Market – We Want Your Blood!

It’s that time again! Preview Properties conducts at least one community service function every month. Past beneficiaries have been Gleaner’s Food Bank, LACASA, The Connection House, The Salvation Army, Family Impact Center, Livingston Educational Service Association, Cell Phones For Soldiers, and of course, the Livingston County Chapter of the American Red Cross.

Please consider a blood donation. This Red Cross chapter provides 97% of all of the County’s blood needs, as well as their emergency services for local disasters and emergency messages for families with overseas servicemen and servicewomen. It’s an easy way to give back to your community.

Our blood drive will be held on Friday, February 13, 2009 from noon till 6pm. The office is located at 130 W. Grand River Ave, Brighton 48116. Parking available along side of the building on St. Paul Street or in our lot, accessed from St. Paul Street between Grand River and N East Street. For reservations, please call the Red Cross at 517-546-0326.

Random Thoughts on Listing Foreclosure Homes

Sure, it's not all bad. But agents listing bank-owned homes work a lot harder on these transactions than you might think. We often have to get utilities on in our names, and pay for lawn and snow maintenance. Here's a few things that happened to me in the last week.

First. An agent called that a lockbox was 'frozen' at one of the condo listings I have. It just wouldn't open. Weird, I thought. Sure, there's no screen door and it's been snowing and really cold, but still. I grabbed the extra set of keys and went over. Hmm. No lockbox. And my keys don't work. What's up?

The Asset Manager for the bank didn't know, either. I called the property management company that the bank assigned, told them the story and they went out to check. They called back and said they couldn't get in either. Locks changed, new lockbox installed and access re-established, though. So I went over, grabbed the extra set of keys and found my old lockbox inside the door. I couldn't figure out what happened.

Then a call from the Condo Association. They were afraid the unit would 'freeze', so they changed the locks to get in and made sure it was winterized. Aagh! All of that for naught. They could have called me and I'd have given them the code to get in. I lost three showings in this little episode. But all is well now.

Second. A showing agent called to report that the door was found closed but unlocked on another condo listing I have, and that she tried to lock it when done, but couldn't get the lock to catch. Drive down there to find the door is out of plumb (bad hinge) and you have to really lift and pull to get the lock to catch. (I mean really, really lift and pull.) I got it to lock and had to make another trip with my tools to tighten the offending hinge.

Third. Agent calls after a showing a bank-owned property. It's a different kind of lockbox that the property management company is using. When the code was entered, the lockbox unlatched form the door. There's a reset lever in back and somehow when re-attaching it, she changed the code to an unknown 4 digit combination and couldn't get it to open to get the keys back in. We arranged a hiding spot for the keys, and I dashed into the office to get a new lock box, take it to the property and put the keys inside. Just when I was planning to sit down with a nice glass of wine and a good book. Oh, well.

Things I've found useful to carry around in my vehicle for foreclosures. Duct tape, clear strapping tape, disposable painters (paper) masks, a 5-cell flashlight and a battery powered lantern, miscellaneous sized pieces of wood to secure door walls or sliding windows if they don't lock, a canister of alcohol-based hand sanitizer, wet wipes and a couple of clean rags. And always carry a pair of work boots, too. Now I'll make sure that I have one or two extra lock boxes with me. And I guess I'll keep my cordless drill and bits in the car, as well. (I could have cut one of the trips out of number 2, above, if I had some tools handy.) In the movie Jaws, Chief Brody has a line that goes, "We're gonna need a bigger boat". If this keeps up I'm gonna need a bigger car.

Selling agents, when you're offered bonuses on foreclosure properties, I really am happy for you. I wish that the banks would understand that the listing agents deserve a little extra, too. We're listing agents, property managers, and in many cases we're acting as general contractors, too, since we have to manage bids, repairs, and re-inspections on some of these properties. It seems like more and more lately.

Oh, and next week I'll be managing the repair of a property that has a foot of water and ice in the basement. No lack of challenges there.

Affordable Homes and Financing Programs

In my market areas, homes are at the most affordable levels in a very
long time. Call it a market correction, a recession or whatever you
like, but homes are now in the best price ranges that I have seen.
Part of the equation is supply.

When I moved to Livingston County in 1988, the big wave of construction was just beginning. We had a marginally tough time finding a home that fit our needs and our budget. Almost immediately after moving in, I saw corn fields transformed into subdivisions, roads widened, traffic signals installed and more retail being developed. The recent wave of foreclosures has also added a lot of homes to the supply with very attractive pricing.

Today buyers can find something that they like without too much difficulty - from starter homes to condominiums to luxury homes.

If you're a first-time buyer or even a 'move-up' buyer, there are programs that can help you. The FHA loan program is very attractive as long as you have a steady source of income, have an employment history and a good record of paying bills.

A marginal down payment will be needed, but the interest rates on this type of loan are very good right now. While the downpayment assistance programs are gone, you can often get the sellers to pay your closing costs as part of the deal - even banks selling foreclosures are
agreeing to that. And you don't need a stellar credit rating, either.

Another option is the U.S. Department of Agriculture's Rural Home Development Program. It offers 100 percent financing but has certain income levels which you have to be below in order to qualify. It's for primary residences (occupied by you), and it's for non-urban areas. If you currently live in a central city or suburb, it's possible that your local lenders won't know about this program, although it has widespread exposure in my market areas.

If you can't meet the tighter lending requirements for a fixed rate mortgage, one of these two programs may be your avenue to home ownership. It's often difficult to figure out which is best for you, so finding a great lender with experience in both of these loan types can make the difference.

A quick internet search found this local lender who has one of the best explanations of the benefits of these type of loans. Check out http://www.44mortgage.com for an excellent primer on these loan types.

Technology – Searching For The Solution, Sometimes Finding It.

Here’s an example of upgrading, going cheap – and paying the price - twice.

I use a Motorola Q smart phone. I love it. I was one of those ‘tethered’ users, though. Always had the hard-wired earbud in my ear. I decided to go Bluetooth. What the heck, the technology had been out there for a while, everybody’s using them (or so it seems) and I tried walking away from my desk with the phone dragging behind me for the last time.

I didn’t take the time to really check into the devices, just went to my local Staples, found a ‘cost-effective’ device and started using it.

I found that as I now wirelessly wandered around the office (now leaving my phone on my desk as opposed to dragging it behind me) I lost the pairing of the phone and Bluetooth when I went too far away. It wouldn’t automatically re-connect when I got back in range, either. So I’d have to go through the sequence again, enter the pairing code, etc., and it would be fine – until I wandered away again. I do that a lot.

Then one day, my cat did me a huge favor. Attracted by the blue blinking light, she jumped onto the dresser and started scooting the little device around. She knocked it to the floor, and scooted it someplace where it is un-findable. (This is my best guess at what happened, there were no eye-witnesses or web cam footage to claim otherwise.)

I decided to check into a new Bluetooth earpiece (I couldn’t work without one) and found one made by – Motorola! – the same manufacturer as my phone. This one was about twice the money, but it is great. It has a mouthpiece/microphone that folds up and closes and actually turns the device off to save battery power. If I wander out of range, it re-connects to the phone within about 5 seconds of getting back into range. No more fiddling around a dozen times a day to re-pair the devices. I can even close the mouthpiece to turn it off, re-open it and it will reconnect if I’m within range.

There are many fine manufacturers that make replacement parts and accessories for technology purchases. In this case, while the first Bluetooth unit worked, it had serious functional shortcomings for me. Perhaps it would have been fine with another make or model cell phone. It turned out that the best solution for me was to go with the OEM (original equipment manufacturer) brand. I’m sure there are dozens of similar stories out there.

I now safely store my Bluetooth unit in a little covered box when I get ready to retire. It rests comfortably next to my Realtor® pin and a few other small items. The cat still looks for interesting things on top of the dresser, and I don’t discourage her. I’m waiting to see what else she can teach me.

Howell Condo Market – Buyers Market!

Whether you’re a Real Estate Professional or an interested consumer, you’ve likely noted that the condo market is glutted and has more potential deals than the larger total housing market.

Looking at condominiums that are located in the two Howell, MI zip codes (48843 and 48855) we can see how badly condos are faring in the current economy.

In calendar year 2007, there were 55 condominium sales recorded in the RealComp MLS. They showed an average sales price of $127,756, a median sales price of $120,000, and a total sales volume (total sales dollars for all 55 sales) of $7,026,554.

In 2008 (through 12/14/08), there were 48 sales with an average sales price of $85,543, a median sales price of $82,950 and a total sales volume of $4,106,053.

These are tremendous one-year drops in value by any standard. The average sales price is down 33%, the median is down almost 31% and the sales volume has dropped over 41%! To make it worse, with 214 units available in these areas right now, there is over a 53 month supply of condominiums (214 available divided by 48 sales this year for 12 months, or an average of 4 sales/mo).

Foreclosed unit sales in this area have tripled, from 6 in 2007 to 18 in 2008.

New construction has essentially stopped, and some builders/developers have either lost unsold units to foreclosure, gone bankrupt, or both. Homeowners in some condo associations are having a myriad of issues to handle, too.

If the development has not had enough units sold to invest the residents as Association Board members, the developer retains control. Some Associations are finding that while they’ve paid their monthly dues, services are not being performed (snow plowing, landscaping) because there’s not enough money in the fund.

Developers often base the starting dues on a certain number of sales per year and a maximum build out time. They may even stipend some of the early costs to get new sales in their communities. When the sales stop and there are many units left to build, it’s bad for everyone.

Built-out, established communities are also grappling with the loss of monthly dues due to bank-owned properties. When a condo goes into foreclosure, those dues stop (often dues are one of the first payment to be deferred when owners get into financial trouble, even before foreclosure). If your association is working on a tight budget and the number of foreclosed properties keeps climbing, it can really hurt the whole community. Banks do pay these back dues at closing, but it certainly creates a short-term budget crunch for the association.

There are definite deals out there in the condo market, but remember to do your homework before you commit yourself. If you’re considering a unit in a development that has a lot of empty sites, be extra careful. Once you analyze the Association budget, it may still be worth pursuing, but make sure you’ve got as much information as possible on which to base your decision.

More Local Business Good News

It looks like after many consecutive years of warmer weather and patchy snowfall that the local ski resort, Mt. Brighton, will have a great year! They opened earlier than ever before and are making snow like crazy. A week ago today they had a 16” base on the intermediate hill. Today is the first day that all hills will be open.

Skiers and snow boarders eat at local restaurants, buy gasoline, and often shop at area stores while in town for the slopes. And Brighton has a very strong retail segment between the newer developments at Grand River and Challis and the downtown area.

Many years ago (way before Brighton had ‘grown up’ development-wise), I came out for a day of skiing. I decided to take Grand River all-l-l-l the way back to Detroit. I discovered a small store just east of Brighton called Marv’s Meats. I bought a couple of items and was amazed at the quality compared to my local grocery stores.

After that, I always made sure that I could stop at Marv’s either before or after skiing to pick up some food. I imagine that there are many other winter sports enthusiasts that come to the area and make their own discoveries.

I would have never guessed that one day I’d be living in this area. Between hunting and fishing in Livingston County with my dad and uncle, and visiting Mt. Brighton in the winter with friends, I guess I got hooked!

Some Local Businesses Doing Well

After the daily assault of bad news, it was
really great to see recent reports of good news
for local businesses.

First, Lowry Computer Products Inc., of
Brighton (Green Oak Twp) is one of three
suppliers that won part of a $75 million multi-
year contract from the U.S. Army. Lowry has
been a bar code leader for many years and has
moved into the passive radio frequency
identification (RFID) field, too.

The contract deals with ways to track military
equipment through RFID, and Lowry is the prime
contractor. Motorola and Zebra Technologies,
Inc., of Illinois are the other two companies
listed in the agreement.

A Crain's Detroit Business article stated that
the effect of this contract for new hires,
expansion or other area impacts are uncertain at
this time - but it sure can't hurt!

---

Liquid Manufacturing of Brighton (Green Oak Twp)
had a site plan approved that will let the
company modify its existing building and add
additional work shifts, but will not create many
new on-site jobs.

Liquid Manufacturing is a brewing and distilling
company on Whitmore Lake Rd and is planning to
add 30 new product lines that include energy
beverages and water brands. They are at the old
Thermofil site.

Market Observations For Howell Zip Code 48843

For homes in the Howell zip code 48843 (basically the Howell area south of M-59), there are some interesting contrasts between 2007 and 2008.

The total number of homes sold are pretty close, 370 in 2007 (through 12/31/07) vs. 378 in 2008 (through 12/4/2008). The fact that the total number of sales has remained pretty constant is a good sign by itself. With lenders getting tougher on loan requirements, required down payments and more underwriting scrutiny it shows that there are still buyers out there looking for homes - and they're able to buy!

If we look at just the foreclosed (also known as bank-owned or REO) homes, the picture is more grim. In 2007, there were 47 bank-owned home sales of the 370 total, or about 13%. For 2008, we’ve seen 115 bank-owned home sales out of the 378 total, or 30%. That’s more than double last year’s rate and this year’s data is not complete at this point.

The median price dropped from $209,750 to $170,000 (a 19% reduction) for those same time periods. That’s a huge drop in value, undoubtedly influenced by the higher number of foreclosures. But there’s also the fact that owner-occupied homes are dropping in price, too, as the entire housing market loses value.

The time to sell a home went down– from 145 days in 2007 to 134 in 2008 So, homes that sold did so about 8% faster in 2008 - a small bright spot, anyway.

If you absolutely have to sell, expect to take a hit from what your home was worth 2 years ago. At least 20%-25% is not uncommon, and it may be even more.

Clean, Affordable Genoa Twp. (Howell) Condo – Great Condition!

Enjoy life in Hampton Ridge Condominiums. This bank-owned property is in move-in condition, features all appliances, and is conveniently located near the retail area of Grand River Avenue and Latson Road. Only five minutes from Historic Downtown Howell or ten minutes from downtown Brighton’s restaurants, shops and the Mill Pond.

This two bedroom, one full bath condominium is an upper end unit and has a one car attached garage. Hampton Ridge also has a clubhouse and an in ground pool, and you’ll enjoy the affordable monthly association fee of just $150. Close to I-96 Exit 141.

Ample grocery and retail shopping within a few minutes drive include Meijer’s, WalMart, Kroger, Kohl’s, Elder Beerman, Tractor Supply Company, Staples, OfficeMax, Radio Shack, Dunham’s Sporting Goods, TJ Maxx and many others. A variety of restaurants are also within that driving time.

MLS# 28192691, priced at an affordable $79,900!
See more pictures at:Realtor.com listing page http://www.realtor.com/Prop/1105035034

Hear The Bell? It May Be Me!

On Thursday, December 4th, I’ll be joining my colleagues from the Brighton Optimist Club to ring bells for the Salvation Army. We’ll be in front of Taorello’s Market Place, 1007 E. Grand River, Brighton 48116, from 10am - 8pm.

If you’re in the area, stop by and say “Hello!” to an Optimist – especially if it’s a cold day. We’ll be working in one hour shifts, and I can tell you that standing for an hour on a cold day is a challenge. My time slot is from 3-4pm, and I’d especially love to see you and exchange greetings of the season!

This year’s campaign kicked off on November 14th, and the goal is $145,000. The Salvation Army also runs an Adopt-A-Family program to make sure that nobody is forgotten during the Holidays.

This is just one of the many community service projects that the Brighton Optimist Club undertakes each year. Sometimes your time and energy is as important as a monetary donation (or more so!).

Contact me to find out more about the Brighton Optimist Club and the programs it conducts for the youth of the area.

REO Fallacies – Part 1

I’ve been doing a lot of REO (Real Estate Owned) properties for about two years and I encounter many misconceptions by consumers – at least from my personal experiences in dealing with bank-owned (foreclosure) properties.

First, the bank will take anything to dump a home. This is absolutely not true in most cases. (Of course, the borderline tear down is the exception.) If you’re offer is at 80% or less of the list price it will likely be rejected outright. If you’re asking for seller contributions towards closing costs, you’d better bump that price up a bit, too.

While banks don’t want to hang onto these properties, they’re just like you and I – they want the best price that the market will bear, based on condition, amenities and the like. Banks price homes in different ways, but they usually get at least two Realtor® evaluations (called Broker Price Opinions, or BPOs), and sometimes a full appraisal, too. When they list a property at a certain price, they’re fairly confident in that value.

Second, if you’re putting in an offer on a house that hasn’t been on the market before, you’d better go in close to full price for the first few weeks. Some Asset Managers will not take less than close to that amount for the first 2-4 weeks. Prices typically get reduced monthly, based on the listing agent’s Monthly Status Report. Asset Managers pay careful attention to local market trends (housing values, unemployment rates, etc.) when deciding upon a pricing strategy and the amount of the reductions.

Third, most banks have already priced the home for its condition. Sure, all of the appliances are gone, and maybe some light fixtures, too. It could have a few holes in the wallboard or carpet that is badly stained. That’s been rolled into the original pricing. If you’re on the edge with what you can afford, don’t expect the bank to bend over backwards for you to get that extra few thousand dollars to meet your pre-approval price point.

Remember, that may have been what happened to the prior owners who just lost the house – they became over-extended. As one Asset manager told me in an email that recently accompanied an offer rejection, “I can't help if they do love the house, they absolutely need to purchase something they can afford and this one they cannot, sorry.” Ouch!

More discussion in later posts, but remember that you buy these homes ‘as-is’, so be sure to get inspections done and carefully consider what you are trying to buy. Expect to pay a licensed plumber to de-winterize the home to check out the plumbing (around $100) and then to re-winterize it (another $200). This is over and above the cost of the inspection itself.

If you have questions about both the benefits and pitfalls of buying a foreclosure property, feel free to contact me.

Brighton Optimist Club - Free Fishing Derby For Kids - June 7th

This Saturday, June 7th, the Brighton Optimist Club will be holding its 22nd annual Free Fishing Derby For Kids at the Brighton Millpond.

Free to kids under 16, there will be awards in various categories across three age groups, free bait, a Lil' Anglers event for children 4 and younger, and a casting contest. A large display tank will show some of the better catches that day.

Bring your rod and reel and a bucket for the fish. There will be three weighing/counting stations available, and all fish are to be released after being recorded. There are some loaner rigs available and free bait, while supplies lasts. The first 400 kids registered will also get a tee shirt.

Registration starts at 7:30 am and the Derby runs 8-11 am. Souvenier picture fishing licenses are also available, but pictures must be taken prior to 10:30 am. Pizza will be served to the kids at 11. While results are being tallied, a local Jump Rope Team, the Jumpin' Allstars, will entertain the crowd. This event is totally FREE!

The Brighton Optimist Club is celebrating its 30th anniversary of "Bringing Out The Best In Kids" this year. This is the longest continually running fishing derby in the State of Michigan. Feel free to contact me with any questions about either the Fishing Derby or the Brighton Optimist Club.

Activity Report - First Time Buyers Driving The Market

Single Family Home sales in Livingston County for the period of January 1st through May 31st have increased by 6% over the same period last year. The average sales price is down 12.9%, but at the end of April that figure was at 13.7%, so it appears that we're moving in the right direction.

Almost half of the sales (46%) are being attributed to first-time buyers. First-time buyers are defined by the U.S. Department of Housing and Urban Development (HUD) as:

- an individual (or spouse) with no ownership in a principal residence for the 3 years prior to the purchase of this home

- a single parent who has only owned a home with a former spouse while married

- a displaced homemaker who has only owned a home with a spouse

- an individual who has only owned a prinicipal residence not permanently affixed to a permanent foundation

- an individual who has only owned a property that was not in compliance with State, local or model building codes, and if that home cannot be brought into compliance with building codes for less than the cost of constructing a permanent structure

Condominiums continue to be a very good buy, too, although many first time buyers decline this type of home ownership because many lack basements for storage, they're intimidated by community regulations, and they don't want to pay the maintenance fees.

A future article will discuss the benefits and shortcomings of condominium ownership. If you have questions in the meantime, you're welcome to contact me directly. My blogging time has suffered due to a high increase in listing and selling activity, my community service commitments, and trying to keep a semblance of family time. You are always welcome to contact me via phone or email (available at my primary web site, http://www.RealEstateMich.com).

Buyer Activity On The Rise?

It's not just me. Talking with agents from other firms and to agents within my company, there seems to be a real spike in buyer activity.

I am getting regular calls on my listings and frequent email inquiries from my various web sites and blogs. Most of the activity is coming from two groups - first time buyers who are generally in the $175,000 and below range, and move-up buyers looking higher. There are a lot of great values in the $225,000 to $300,000 range. Larger, newer homes with a lot of space and upgraded amenities seem to be the ticket.

This is great for the move-up buyers that have been able to save some money, retire debt, or both. They are in a wonderful position to get bargains right now.

A recent short sale in which I worked as a buyer agent gained the buyers $40,000 in equity. This is no joke. The sale price was $240,0000 and the appraisal came in at $280,000. A recent foreclosed home that I had listed sold for $210,000 and appraised at $240,000. Believe me, appraisers and banks are looking critically at comparable properties and have tightened up on the appraised values significantly, but these types of gains are still fairly common in my market areas.

Sellers, I still recommend that you don't put your home on the market unless you absolutely, positively have to sell. If you do market your home, accept that its value will be less than it was just two years ago. Unless it's priced properly you won't even get people to look at it to see how great it is.

Buyers, get pre-approved, Not just a pre-approval letter, but have your lender run the credit, put you through desktop underwriting and really see what (or if) you can afford to buy. If you're looking at foreclosures as a possibility, you may even have to get pre-approved by a representative of that particular bank, although they won't require you to use them for the actual transaction. They're simply trying to reduce the number of transactions that fail to close.

I regularly work with buyers and sellers, have a good listing inventory mix of traditional (homeowner or retail) and bank-owned properties. I'm experienced at short sales and have undergone loss mitigation training, too. If you're feeling the pinch and think you might be on the road to losing your home, call me for a short consultation. There may be other avenues you can take with your lender to keep you in your home.

Preview Properties to Host Blood Drive - May 10, 2008

On Saturday, May 10th, Preview Properties will be hosting a blood drive for the Livingston County Chapter of the American Red Cross. This is the company's charity activity for May 2008, and we invite you to participate.

Hours will be 10 am - 3pm. You can call the Red Cross office at 517-546-0326 to set an appointment, or just show up during the blood drive hours.

Preview Properties is located at 130 W. Grand River Ave., Brighton, MI 48116, at the corner of St. Paul Street.

The Livingston County Chapter of the American Red Cross web site is http://www.liv-redcross.org/index.html

Brighton Optimist Club Golf Outing - 5/17/08, Whispering Pines Golf Club, Pinckney

The Brighton Optimist Club is a community service organization whose motto is 'Bringing Out The Best In Kids'. Perhaps best known for the Free Fishing Derby for Kids at the Brighton Millpond every June, they do many other notable things.

In their 30 year history, they've given out tens of thousands of dollars in scholarships, conduct an Oratorical Contest to encourage public speaking in youth, recognize area youth through their Youth Appreciation events and Public Safety professionals through Respect For Law days. The Brighton Optimist Club was also the group that started the effort towards what is now the SELCRA Meijer's Skate Park. The group is supporting the only remaining Junior Achievement Program in Livingston County.

As part of their annual fundraising efforts, they are organizing a Golf Outing for May 17, 2008. It will start at 1pm at Whispering Pines Golf Club in Pinckney. They're looking for golfers and sponsors. Please visit their online registration page at http://www.regonline.com/Checkin.asp?EventId=610749 to register to golf, or click on the 'event details' link on that page for more information. Help the Optimists help our area's youth - and have a great time while doing so.

Register as a golfer or sponsor today! The Brighton Optimist Club Foundation is an IRS-recognized 501 (c)(3) organization.

Aprils' Community Service - Cell Phones For Soldiers

Here at Preview Properties, we select a new community service project each month. For April 2008, our project is 'Cell Phones For Soldiers'.

Stop in at the office located at 130 W. Grand River, Brighton (corner of E. St. Paul St.) and drop off your old cell phone. For each one collected, a serviceman or woman on assignment overseas will receive a free 60 minute phone card. If you can't make it into the office yourself, give me a call at 810-220-1478 and I'll be happy to make arrangements to pick up your old cell phone equipment.

Gleaner's Food Bank - Fill The Gazebo, May 3, 2008

The Livingston County Association of Realtors has been supporting Gleaner's Food Bank for a number of years by way of its 'Fill The Gazebo' Food Drive. As the name implies, we want to fill the Brighton Millpond gazebo with food donations.

On May 3, 2008, you can drop off items on Main Street in Downtown Brighton. Realtor volunteers will be standing in the center lane to accept your food and monetary donations. We'll also be stationed aroudn the County at various grocery stores to accept donations.

In addition to food, the Gleaner's Food Pantry needs household items like laundry detergent, toothpaste and the like. All food collected stays within Livingston County for families in need. In fact, we can't support our own County's needs and Gleaner's has to bring additional food into Livingston to help support the demand for its services.

If you see a great sale at your local grocery store, consider buying extra to donate on May 3rd. If you have trouble making it into town that day, most Realtor offices will have drop offs available. Or feel free to call me at 810-220-1478 and I'll be happy to get your food or monetary donation collected.

New Home Construction Summary-Jan 2008

In a previous post, I reported on an industry survey of new home construction that is conducted monthly by Bank of America. With their kind permission, here is a summary from the January 2008 report.

New home prices and incentives to buyers continue to increase while time to sell is taking longer. Nationally, part of this is still an over-abundance of inventory, but as many builders are now reducing standing stock and beginning new construction only upon receipt of a signed puprchase agreement, this inventory continues to drop.

New home affordability, attractive mortgage interest rates and the dropping inventory will help this sector over the next 12 months.

The Detroit-area market was the nation's 36th largest for all of 2006. This latest report indicates that traffic at new models is still pretty slow and prices continue to drop, while time on the market increases - pretty much in step with national trends. In this market, the builders with the most exposure are Pulte, Toll Brothers and Centex, but there are a lot of great smaller, local builders, too. Many are also doing remodeling work in addition to new construction.

It's a great time to get a bargain on a new home, but shop carefully! There are many, many great deals available on exisiting homes, too, and you can often get more for your money with a re-sale home. Work with an experienced, full-time real estate professional and mortgage representative to get the most from this strong buyer's market.

Michigan Voter Identification

If you voted in the November 6, 2007 local elections or the January 15, 2008 primary elections, you noticed that you were asked for identification for the first time.

The preferred ID is a valid Michigan Driver's License or State-issued ID card (also available at the Secretary of State office). Federal or state government-issued photo ID's, U.S. passports, military photo ID cards, photo ID cards from a high school or higher education institution and tribal ID cards with photo are also accepted.

So what happens if you don't possess any of these documents? You were asked to complete an 'Affidavit of Voter Not in Possession of Picture Identification' before being allowed to vote.

This State Law was originally enacted in 1996 and then renewed in 2005, but then State Attorney General Frank Kelley ruled it a violation of the equal protection clause of the 14th amendment on the basis that it was essentially a 'poll tax'. The law had been in 'limbo' since then.

This divisive issue has been split along political party lines, with Democrats in opposition and Republicans in favor of the law. Finally, the Michigan Supreme Court ruled that because voters can choose intead to sign an affidavit swearing to their identity, there was no poll tax. The ruling went along political party lines, with five Republican judges in favor and the two Democrat judges in opposition.

As the second voter in line at my precinct on January 15th, I can attest to the confusion of the election workers first thing in the morning, but they seemed to have it ironed out later in the day, according to my wife, who voted in the late afternoon.

MDOT Closing Park 'n Ride Lot at M-59 and Michigan in Howell

Due to the expansion of M-59 to a 4 lane boulevarded roadway, this Park 'n Ride lot will close for good on February 4, 2008. The next nearest lots are at Michigan Ave and I-96, south of the Howell City Limits, and to the east on Old US-23 just north of M-59.

The project will also undertake ramp improvements at I-96 and M-59, resurface the road and make drainage improvements. Three bridges over M-59 will be totally replaced.

See this link for details. http://www.michigan.gov/mdot/0,1607,7-151-9621_11008_45330---,00.html

Groundhog Day Is On The Way

This Saturday, February 2nd is Groundhog Day. Groundhogs are also known as woodchucks, marmots, and even as land beavers and ground squirrels. They are widely distributed in North America, especially in the central and northeastern United States, and can weigh in between 4 and 9 pounds. There's no real relationship between woodchucks and wood. The name is believed to have originated from the Algonquin or Narraganset name for the animal, 'wuchak'.

Groundhog Day started in Pennsylvania and New York State as a prediction of how the last half of winter would proceed. If the groundhog comes out of his burrow to see his shadow, he goes back in to sleep for 6 more weeks, indicating a hard end to winter. If he sees no shadow, he remains out, forecasting a mild second half of winter.

Punxsutawney Phil of Punxsutawney, PA is the most famous groundhog weather forecaster in the United States, but Howell, Michigan has its own Woody the Woodchuck. Taking up residence at the Howell Nature Center, Woody will be making her 10th appearance this year, which could make her record 8 for 10 if she successfully predicts this year's last half of winter conditions.

Woody will appear promptly at 8:15 am, and the there is a new breakfast option available, too. $8 for adults, $6 for children under 12, and children under 2 years of age are free. if you're planning on breakfast, please call to make reservations by dialing 517-546-0249. The proceeds will support the Wildlife Programs at the Nature Center. Photos with Woody are also available for a small fee.

UPDATE: Woody's prediction was that Spring will be early this year!

Huron River Watershed Council

In a few minutes, I'll be heading outside. It's Saturday morning, January 26th, and I'm off to wade in local tributaries. Yup. Why would I do that?

I'm a volunteer 'collector' for the Huron River Watershed Council, and one of their biggest events (in the Adopt-A-Stream) program is the Winter Stonefly Search. Stoneflies are aquatic invertebrates and live only in fairly clean water, so their presence is a rough indicator that a creek or river is generally 'healthy'.

Team are assembled, a leader and collector assigned (they've gone through specific training), and volunteers are added as 'pickers', to sift through the trays scooped out of the water.
Even though it's 21 degrees and snowing, we'll have a huge turnout of people looking for something to do. School-aged children with parents, environmentalists, fishermen, residents that live in the watershed all band together to make this great event possible.

For more information, see the link at http://www.hrwc.org/adopt/index.html

And don't worry about me getting cold in the water. I'll use my 5mm neoprene waders that will keep me very warm and dry

Random Thoughts About Buying Foreclosures

(c)2008 Robert Smith
There's no doubt that there's a lot more foreclosure properties on the market and a lot more of them are selling. This post isn't as structured as most of mine are, but here are some general observations I've made on buying foreclosures over the last few weeks.

First, look at how long a property has been in the MLS. I've seen some lenders refuse all but full price offers in the first two weeks of a listing. Why would they do this? To make sure it's priced right, or perhaps to try to spur multiple offers to get two buyers competing against either other. The number of showing a property receives in the first two weeks will tell if it's priced right. And they don't care if it's a cash offer or a mortgage-backed offer, either.

Second, when looking at the lower-end priced homes in a given area, you aren't going to be successful bidding ridiculously low. In my market area, for example, homes at $115,000 or less will probably sell within $5,000 to $7,000 of list price. It really is a waste of time to write that offer for $75,000, folks. Unless, of course, the home needs total rehabilitation, but then you have to re-add those costs into your 'project' scope.

Third, banks aren't trying to give away these properties. They are willing to wait. And if they don't sell they'll often put them up for auction. At most house auctions that I've monitored, the successful bid price is at least the price the bank would have sold the property at, anyway. Often, they sell for a higher price at auction!

If you're a first-time buyer, please think carefully about buying a foreclosure property. Let's say you're approved for $150,000 but you're monthly payment comfort level is really around an amount of $130,000. At 6.5% interest and a 30 year fixed mortgage, the difference between financing those two amounts is around $147/mo, or $821 vs. $948 on the mortgage payment.

That doesn't include property taxes, PMI, insurance, maintenance or any of the other stuff that goes along with owning a home. And often, property taxes on foreclosures have gone 'non-homestead', which adds another 19 mils to the property tax rate. Once a home is vacant, and often shortly after the Sheriff's Sale, the local assessor changes the status, so for at least part of the next year after pruchase, your property taxes will be higher.

It makes no sense for you to be looking at $160,000 or $180,000 houses thinking that you'll get a fantastic deal at your $130,000 comfort level, yet many consumers are doing this. It's a waste of time and makes the home buying process a lot more frustrating.

Get educated as to what kind of, or how much home you can buy for your price range. Look at houses, but also keep an eye on the ones that have sold. That's where the real value indication is seen. Honest, forthright discussions with a lender and a Realtor(R) that you can trust will help you get the most value in the home buying process, especially as a first-time home buyer.

Mid-January 2008 Market Update

We've been hearing a lot about the horrible housing market for sometime now. In fact, it's hard to get away from it. Television, radio, magazines, newspapers, candidate speeches - it's all over the place.

Livingston County finished 2007 with November and December reporting more sales than the same two months in 2006. As of today, (January 21, 2008), it looks like January could do the same. At this time in 2007, there were 59 sales, today we had 74. That's a pretty good increase.

It's also interesting to note that the Days on Market (DOM) went down from 169 in 2007 to 130 for the same period this year (1/1 - 1/21). Another great indicator is that about 25% of these sales were at list price or above as opposed to 17% in 2007.

We also had more homes sell within 90 days for this time period, 43 sales or 58% vs. 18 sales or 30% in 2007.

It looks like buyers have finally figured out that they can't just lowball their way to a great home. That works some of the time with some properties, but it's important to determine any property's TRUE VALUE. There are some deals in the market, but there are precious few steals.

TRUE VALUE takes into account the declining prices. It's not unusual to have buyers getting homes cheaper than the price the seller paid for it two, three or four years ago. When you find that house that you really want, have your Realtor(R) assist you in determining its market value, then go for it!

2007 Washtenaw County Housing Market Report

Year-end information for Washtenaw County home sales is now available.

Home sales dropped in number for 2007 when compared to 2006, dropping from 3,345 to 3,062 (or 8%) and condominium sales dropped from 761 in 2006 to 660 (13%) in 2007.

Sales volume (total dollar value of all sales) on houses went from $866,132,966 in 2006 to $766,375,165 - an 11.5% drop. In the condominium category, volume dropped from $135,160,039 to $119,784,350 - an 11.3% drop.

There was a 4% increase in 'fall throughs', homes under contract that never reached closing for one reason or another, and withdrawals from the MLS increased over 9% compared to 2006 (6,083 in 2006 vs. 6,652 in 2007).

Based on information from the Ann Arbor Area Board of REALTORS® Multiple Listing Service for 2007.

December 2007 and Year-End Market Report

(c) 2008, Robert Smith
Analyzing data released by the RealComp multi-list system to its members, it appears that Livingston County finished 2007 with an small upswing.

While homes (single-family houses and condominiums) on the market were down by almost 7% from the same period in 2006 (419 homes vs. 450), total listings on the market, which includes vacant land, multi-family and commercial listings, were dead even (4698 for 2007 vs. 4695 in 2006).

In December, there was a slight rebound in both the average and median sale prices. While these are only good as a larger view, it's encouraging to see increases at the end of the year in these indicators. Comparing 2007 to 2006, the median price showed an overall drop of 8.6% from $215,667 in 2006 to $197,195 in 2007.

Houses fell from $218,900 median sale price in 2006 to $190,000 in 2007, and condominiums took a much larger hit, going from $155,000 in 2006 to $104,000 in 2007. Vacant land prices also fell dramatically, but on a significantly smaller sales (dollar) volume. This is probably due to the massive decrease in new home construction.

Another postiive indicator was in the monthly residential sales totals. Both November and December 2007 showed increases vs. the same two months in 2006, 145 in Nov 2007 vs. 130 in 2006 and 135 sales in Dec 2007 vs. 125 in 2006. The year finished with a 10.4% drop in total residential sales. The sales volume (total dollar value of all sales) fell 19.1% in this last calendar year.

We saw a lot of value drop in this last year. My personal opinion is that we'll see another 6% loss in value in calendar year 2008 in the County. In addition to more foreclosures coming into the market, tightening credit, increased scrutiny by lenders and more rigid borrower requirements may make home loans difficult to obtain for many potential buyers, even though the overall interest rates remain very good.

If you absolutely, positively have to sell your home now or at any point in 2008 be prepared to take a lot less than your last refinance or mortgage appraisal value. I'm sorry, but there it is. A full-time local Realtor that keeps their eye on market conditions in the various Livingston County home market areas (Cities, Villages, Townships and School Districts) and price ranges will be your best bet to maximize your selling price.

Buyers are poised to find some value in this market providing that they can meet the tougher new lender requirements to obtain financing. It's still possible to get 100% financing through FHA loans, but almost all other loan types are going to require some money out of your pocket. As home values continue to fall, this buyer's market will persist through 2008.

Michigan's Growth Industry - Wine!

(c) 2007, Robert Smith
Over the last few years, I've become more interested in wines in general, and Michigan wines in particular. I gravitate towards fuller bodied reds with a low relative sugar content. Of course, in Michigan you have no problem finding sweeter wines either, a fact that delights my wife.

Most people know about the Leelanau and Old Mission Peninsula areas, but there are some very good wineries in southeast and south central Michigan, too. Some, like Sandhill Cranes Vineyards in Jackson and Cherry Creek Cellars in Cement City, have their own vineyards.

Others like Pentamere Winery (Michigan's first urban winery) in Tecumseh buy grapes and do the wine-making at their site. Pentamere buys grapes only from watershed areas that drain into the Great Lakes. Stop in and talk to these guys, their passion is contagious! And take a taste of Garnet 2005 while you're there. Most red and white wine lovers will like this wine. Ask them for a tour of the basement for a fascinating look at a compact wine making operation.

There are more wineries and 'micro-wineries' opening that buy various grape juices and start the wine making process from that point, like Spotted Dog Winery in Saline. Don't let that stop you from trying some very good wines! (Their Saline River Red is a very enjoyable and affordable table wine.)

Some good general internet wine resources are CatchWine.com , WinesAndVines.com, and MichiganWines.com - website of the Michigan Grape and Wine Industry Council. The Benson Marketing Group (www.BensonMarketing.com/enews_monitor.html) serves the wine industry and has three different eNewsletters that you can receive in the General, Direct Shipping, and Wine Afficionado categories.

Free Radon Test Kits

The Livingston County Health Department is giving away free radon test kits through the end of January 2008. They can be picked up at the County's East Annex at 2300 E. Grand River, at Chilson.

Radon is a colorless, odorless gas that can cause lung cancer. It is estimated to be present in one of every five homes in Livingston County. Radon gas accumulates in the lower level of the home (basement) and enters via cracks in the foundation or the sump. It can also be found in homes built on a slab, and is easily remediated by qualified firms.

All homes should be tested for radon, especially if you spend significant time in the basement. January is National Radon Action Month.

For more information please check this link to the Indoor Air Quality section of the Environmental Protection Agency's (EPA) web site, this page at the Michigan Department of Environmental Quality (DEQ), and to the Livingston County Health Department web site.

Investors - Be Careful Out There!

This afternoon, I dropped off an executed purchase agreement to an area lender who was working with a buyer. While there, I took a few minutes to compare notes with the loan officer. We talked about the housing market in general, the tightening of requirements by underwriters, and our prospects of what 2008 will hold for the industry.

The talk came around to investors who are having the same problem that many homeowners are experiencing - time to refinance but there's not enough equity in the property with dropping values. Making it somewhat worse is that there are fewer recent solds to use as a basis for determining value.

A good rule of thumb for any investor is to critically examine a property's cash flow. Don't just think about the old PITI guidelines - Principal, Interest, Taxes and Insurance. Build in a vacancy rate in case you have turnover. If you have a single unit house, one month's vacancy is 8.3 percent for the year. Are you able to comfortably carry the payments without rental income for a month? How about two months?

Before you buy, do a rent survey to see what rent prices are working and how long it's taking to fill vacancies. Add a certain amount for routine maintenance, even if you require tenants to do things like lawn care and snow removal. And don't forget about start-up repairs or remodeling that you may have to do rent a home.

It's a wonderful time to buy investment properties, but keep cash flow as your number one goal. Number two should be likelihood of and rate of appreciation. Number three is a 'no-brainer' - the tax benefits you'll get from owning investment property.

By the way, we think that 2008 will see property values continue to drop (at least through mid-year) unless there is a strong stimulus to jog the economy. And another quarter point interest rate cut by the Fed won't qualify! Again, if you're looking to move up to a larger more expensive home, buy a vacation home or investment property, the first six months of 2008 should be that time.

6 Strategies To Sell A Home In Any Market

Regardless of the market, here are six strategies to help get your home sold. We are currently in a strong buyer's market, which means that there is more inventory than available buyers. In SE and Central Michigan, this has been caused partly by the decrease of employment in the auto manufacturing sector and subordinate tiers of suppliers, and partly by the credit crunch that is accompanying the spike of home foreclosures.

To sell a home in any market, there are certain broad factors to consider. Location, which you really can't change, won't be addressed.

1. Pricing is totally within your control. It's important to set your list price close to true market value. Market value is not what your refinance amount was 12 or 18 months ago. It's not what your neighbor's home sold for 8 months ago. It is truly what a ready, willing and able buyer will pay for it - RIGHT NOW. Your Realtor(R) can help you find that number by looking at recent sold data for comparable homes within a reasonable distance.

Price your home too high and you'll get few (or no) showings. And it's very possible that we'll see home values drop more through the first half of 2008, so getting a good read on the market is vital to getting you the most possible dollars for the sale of a home. Price it right at the start - don't 'experiment'.

Condition also plays a huge part in the value equation. You wouldn't pay as much for the same home if it were in poor repair, would you? Neither would anyone else.

2. Curb appeal is still very important. I admit that it's more difficult to have great curb appeal in the winter, but you can still get rid of the clutter in the front and side yards, keep the driveway and walks shoveled, and have an attractive porch. Don't under-estimated how curb appeal sets the stage for buyers.

3. Inside the home, it's very important to de-clutter and de-personalize the living space. Some people have a difficult time imaging their possessions in a house and making them side-step through rooms doesn't help one bit.

4. Neutral colors are still the best. While many people are now into vibrant colors or a wall of emphatic color, resist the urge. Stay neutral, but not stark, antispetic-looking white.

5. Stage your home. But don't do it yourself. Spend a few hundred dollars to have a professional come in and make the most of what you've got. They can also recommend neutral colors for repainting, so it pays dividends to have a home stager in early in the process. They often more than pay their way on resale amounts.

6. Choose the right Realtor(R). The most important things to look for are whether or not the sales agent is full-time or part-time, how familiar they are with your market area, and how busy they are in the marketplace. Remember that your real estate agent will be helping to guide you with price, appearance and negotiations. Find out what they'll be doing to market your home and how successful those tactivs have been in the past.

There are certainly no guarantees, but you want to have as much of an edge as possible. In the end, if you're not getting the number of showings that you need to generate a purchase offer, the price is not right. Condition will help a buyer to choose you over the competition, but you need a realistic price for your home to be seen in the first place.

Blood Drive - Preview Properties, Brighton - January 5, 2008

I'm proud to say that my office will be hosting a blood drive on Saturday, January 5, 2008, from 10am through 3:45 pm. Preview Properties is located at 130 W. Grand River (corner of St. Paul) in downtown Brighton.

Stop by and donate a pint! According to the American Red Cross of Livingston County's web site, last year they touched the lives of 1 in 3 people in the County, and provided 97% of blood needs to Livingston County hospitals.

Visit their web site for information on building a home disaster kit or get info on CPR and First Aid courses.

Livingston County Non-Smoking Restaurants

I recently received an inquiry about non-smoking restaurants from somebody new to the County. I told him about the ones that I knew of personally, and began to keep notes as I was out and about and added others that I've heard about through friends. Just a few years ago, you would have been hard pressed to find a single non-smoking restaurant in the area.

Here are the ones that made it to my list. If you know of any others,
please drop me a line and I'll add them as they arrive.

Brighton
Bagels & Bites, 5757 Whitmore Lake Rd, 810.220.2333
Big Apple Bagel & BAB's Deli, 8705 W Grand River Ave, 810.220.4512
Brighton Bar & Grill, 400 W Main St, 810.229.4115
Great China, 5757 Whitmore Lake Rd, 810.229.5577
Grecian Island, 9994 E Grand River, 810.229.3101
Ocean Gardens Chinese, 8028 Grand River, 810.229.8888
Panera Bread, 8365 W Grand River, 810.225.0870
Red Robin, 8522 W Grand River, 810.534.1000
Scalawag's Whitefish & Chips, 5757 Whitmore Lake Rd, 810.229.1700
Thai Express, 114 W Grand River, 810.225.3656
Yum Yum Tree, 140 W Main St, 810.227.7780

Fowlerville
China Gourmet, 175 W Van Riper, 517.223.3800
Fowlerville Farms, 941 S Grand, 517.223.3488

Hartland
New Asia Chinese Restaurant, 10030 Highland Rd, 810.632.3288
Waldenwoods Resort, 2975 2975 Old US.23, 810.632.6400

Howell
Bob Evan's Restaurant, 3880 E Grand River, 517.540.0658
Copper Pickle Deli, 119 W Grand River, 517.540.9920
The Grand River Diner, 107 W Grand River, 517.548.5150
Holiday Grill of Howell, 1101 E Grand River Ave, 517.545.3959
Time Square Deli, 4785 E Grand River, 517.546.5151
Uptown Coffee House, 102 E Grand River, 517.546.1124

Mortgage Forgiveness Debt Relief Act Signed by President Bush

On December 20, 2007, President George Bush signed the Mortgage Forgiveness Debt Relief Act of 2007. For homeowners in financial trouble, this is good news.

Under the system before this act was signed, homeowers that sold their homes for less than what was owed (a 'short sale'), or who had debt forgiven due to a foreclosure, deed in lieu or other loan modification arrangement, were taxed on that forgiven amount, often called 'phantom income'. Internal Revenue Service (IRS) guidelines considered that amount a gift, and therefore taxable income. Talk about kicking you when you're down!

The act is retroactive to January 1, 2007 and runs through December 31, 2009. It's capped at a $2 million figure for tax relief and is limited to situations where debt is forgiven because of a decrease in home value or financial hardship of the borrower. It also excludes second homes from tax relief, so it works only with your principal residence.

It also calls for the extension of mortgage insurance premium deductions on your tax return through 2010.

The bill is considered responsible and fair because it will be paid for by increasing penalties for S corporations and partnerships that fail to file taxes.

Michigan Home Manufacturer Buys Canadian Company

Auburn Hills-based Champion Enterprises Inc. (NYSE: CHB) announced that it has acquired Canadian builder SRI Homes Inc. for $114 million (CDN) on Thursday, December 20, 2007.

Champion Enterprises builds and sells manufactured and modular housing under many different industry brand-names.

SRI Homes operates three manufacturing facilities in Western Canada (British Columbia, Alberta and Saskatchewan) and reported unit sales of about 1,350 for the 12 months ending September 2007. Their web site bills themselves as "Canada's Largest Home Builder". Established in 1978, they export homes to China, France, Japan, Germany, Russia, New Zealand the the USA. Their product line includes commercial and temporary/emergency shelters, mostly for export to the international market.

Robert Adria will reportedly remain as president of the SRI Homes division.

In March 2006, Champion acquired Highland Manufacturing Co. , in April 2006 the United Kingdom company of Calsafe Group Ltd., and in July 2006 they acquired North American Housing Corp.

Modular homes have become more popular with consumers because of their lower initial costs.

East Grand River Project-Livingston County

The East Grand River Road project is underway! If you've traveled the road between Pleasant Valley and US-23, you've noticed that there are a lot of trees that have been removed on the north side of Grand River.

This first phase is to help expedite the identification, relocation and consolidation of utility lines. That part of the project is pretty well wrapped up by now, with work on the next phase to resume in March when the weather moderates.

Grand River will get significant modernization under this project. Resurfacing from the Brighton City limits to US-23, widening to five lanes between US-23 to just east of Academy Drive, widening from two to four lanes from that point east to Richards Drive, and widening to three lanes from Richard Dr to Pleasant Valley Rd.

This stretch of road is now seeing 17,000 vehicles a day with an expected increase of 50% over the next 20 years, according to the Livingston County Road Commission. Smoother rides, less congestion, better safety with a left turn lane, and higher capacity in the future are all part of the plan.

Brighton Township and Green Oak Township collaborated on a plan for this area, which was adopted by both Township Boards of Trustees in January 2006. It was used for the design planning stage by the Livingston County Road Commission (LCRC), and also included ordinance revisions, development guidelines, identification of pathway locations along this corridor.

Commuter Expense Calculator - New!

(c) 2007 Robert Smith

I've just installed a new 'Commuting Expense Calculator' on two of my web sites. This calculator determines fuel and mileage costs and their effects on a monthly budget. Enter the mileage to work from two different cities, some other parameters, then the loan amount for a home in both of those cities. Click 'calculate' and see what comes out!

Livingston County Michigan is notoriously a commuter location. Whether you drive to Ann Arbor, Lansing, Flint, Novi, Southfield or Troy, you'll find this new tool useful.

Please visit my main web site at http://www.RealEstateMich.com or my secondary site at http://BrightonHomesForSale.biz to try this exciting new tool! The calculator is located at the bottom of the home page.

My thanks to the developer, Joel McDonald of AutomatedHomefinder.com and BenchmarkRealtyLLC.com for the opportunity to provide this tool to my clients, customers and web site visitors.

Green Oak Township May Implement A Rental Property Registration

At the December 19, 2007 Green Oak Township Board Meeting, the Building Department recommended consideration of an ordinance to register residential rental units. The Board's online packet and minutes contain numerous rental registration ordinances from around the State. The current thinking is to do an initial inspection at the time of registration to make sure the structure is up to code, then do either annual or bi-annual inspections. This could be implemented in Spring of 2008 in one form or another. That packet is currently under the 'Bulletin Board' area, but will get moved to 'Minutes & Meetings' at some point. If successful, this will be the second Livingston County municipality to enact such a provision.

The City of Howell has an ordinance which requires annual registration of rental homes through the Community Development Department. It has nominal fees associated with it, but requires the owner to appoint an 'agent' for the property if the owner resides more than 60 miles from the registered rental home.

Land Donation By Sisters to Livingston Land Conservancy

The Detroit News today reported the donation of eight (8) acres of wetland along the Logan Lakes Natural Preserve in Oceola Township. Located south of M-59 and near Hughes Road, this represents the second land donation to the Livingston Land Conservancy this year - a first.

There is a variety of native plants on this parcel and the habitat is judged to be good for the presence of massasauga rattlesnakes, a shy native species, although none have been seen on this piece of land.

According to the Michigan Department of Natural Resources (MDNR), the massasauga rattlesnake has historically been found in a variety of wetlands and adjacent uplands throughout the Lower Peninsula, with a majority of the sightings being reported from Oakland, Livingston, Washtenaw and Jackson Counties. The species is listed as a species of special concern by the MDNR and as a candidate species for the Federal Endangered Species Act.

Donated by sisters Dianne Winfrey and Jo Anne Normile from Westland and Saline, respectively, Winfrey was quoted in the Detroit News article as saying, "We like the animals and nature. We thought the best thing to do was to donate it to a land conservancy. I'm all for keeping as much open space for the next generation."

The Livingston Land Conservancy was created in 1991 as in a private, non-profit, tax-exempt 501(c)(3) organization, and has preserved a total of over 500 acres of land in various Livingston County and north Washtenaw County locations.

You can read the entire article by Candice Williams at http://www.detnews.com/apps/pbcs.dll/article?AID=/20071219/METRO04/712190352/1015/rss04

Howell Opera House gala Celebrates 126th Anniversary

The Howell Opera House will celebrate its 126th anniversary with a gala event from 8pm till midnight on December 29th. Actually a day early of the true anniversary of December 30th 1881, funds will be used to help with the second floor restoration.

Tickets are $85/person ($75 if you're a member) and Livingston Arts Council organizers expect a capacity crowd of 200. Dancing, a silent auction, hors d' oeuvres and tours of the second floor will be on the agenda.

The Opera House was closed by the Fire Marshall in 1924 and had been in use as a venue for entertainment, speeches by presidential candidates to high school graduations and even a short stint as Livingston County Circuit Court.

The long shuttered second floor (above Gill-Roy's Hardware Store) helped to preserve this gem of a structure. For reservations, call the Arts Council at 517-540-0065.

Remodeling Cost vs. Value

Each year, the National Association of Realtors publishes a Remodeling Cost vs. Value report in Realtor(R) Magazine, adapted from Remodeling Magazine. It sets out certain job parameters, costs out the job, calculates the added resale value, and assigns a percentage as 'Cost Recouped' for each one. Information is broken into geographic areas. Here's information for the East North Central area, which includes Michigan, Ohio, Indiana, Wisconsin and Illinois.

The top 'Remodel' winner is the minor kitchen project. This job was for a 200 sq ft kitchen with 30 linear ft of counter and cabinets. It left cabinets in place but replaced fronts with raised-panel wood doors and drawers and hardware; replaced wall oven and cooktop with more energy efficient models, replaced laminate counters, installed a mid-price sink and faucet, repainted trim, added wall covering and replaced resilient flooring. That came to a total job cost of $21,863 with a resale value assigned at $16,010 and a recouped cost of 73.2 percent.

The top 'Addition' job was a 16 x 20 wood deck with pressure treated joists, 4 x 4 posts anchored to concrete piers, and pressure treated decking layed out in a simple linear pattern. It did include a built-in bench and planter made of decking material, and included three steps to grade as well as railings and balusters. This job cost was $10,516, the resale value was $7,540 and the recouped cost calcuated at 71.7 percent.

You can see all of the data at http://www.costvsvalue.com/ if you wish.

Within a given geographic area there are price variances. Costs of material, labor, permit fees and local taxes all play a part in the final figure. It's always a good idea to have your job parameters in writing and ask at least three contractors for quotes. Many local builder associations have members that specialize in remodeling, and it's always a good idea to check with the Better Business Bureau (BBB) to see if there are unresolved complaints with a given provider.

November 2007 Market Report-Livingston County

Last month's data from our MLS, RealComp, is now available.

Comparing 2007 to 2006 YTD as of November 30th, there are currently 3081 residential listings (homes and condominiums) compared to 2983 last year, or 3.2% more homes on the market.

The number of sales has dropped 11.7%, 1607 for this year as compared to 1819 last year, but the sales volume (total price of the cumulative sales) has dropped by a larger 20.2 %. Days On Market (a measure of how long it takes to sell a home) has risen by 12 days (or 8.8%) from 137.9 days last year to 150.1 days on market this year.

Individual price ranges are seeing different levels of activity. The price ranges that have seen the most sales YTD (with at least $40 million in volume) are the $200,000-$249,999 range (340 sales) and the $150,000-$174,999 range (246 sales). I believe that the former represents move-up opportunities for young families, and the latter is representative of first-time buyers getting into their own home. Three (3) homes have sold for 1 million dollars or more in the County so far this year.

Geographically, Hamburg, Green Oak and Genoa Townships have the most YTD sales and sales volumes with the reporting year almost over. Hamburg Township has been the fastest growing Township in the County for many years running. Livingston County remains Michigan's fastest growing County.

Most borrowers are financing via conventional mortgages, with some cash sales reported, too. FHA, land contracts and VA financing are far behind in numbers.

Lease To Own - Understand Before You Sign

(c) 2007 Robert Smith
There's a lot of interest from consumers about lease-to-own arrangements, sometimes called lease option financing. It's sold to consumers as an alternative method to build equity and delays a formal mortgage application for a set period of time, usually 12 to 24 months.

Prospective purchasers with less than perfect credit, no downpayment, and/or high debt to income ratios are allowed to rent a property for the contracted period, usually at a higher price than market values. A portion of this higher rent goes towards the ultimate purchase price, which is often higher than market value, too. Then there's the up-front 'option fee' which can range from hundreds to even thousands of dollars. Many would-be purchasers borrow this money from family. The option fee is refundable in very limited circumstances at best, and sometimes not at all. At a prescribed point in time, the renters are expected to apply for a mortgage and buy the property at the pre-established price.

What a deal for the landlord/seller! They usually dump all of the maintenance of the property onto the renter which helps them maximize their return. Of course, this type of renter is also more motivated to make payments on-time. Some contracts even have fine print that calls for loss of the option fee for being late with a payment by even one day.

Not all investors participating in lease-to-own arrangements are shady. But the rental market has been a bit soft, not unlike the general housing market, and it's getting harder for landlords to attract quality tenants at the prices they need to make a property cash flow in the positive. Like owning the house in which you live, there's overhead to rental properties. Every month that a property is not producing rent is like a boat anchor for the owner.

Most of the time, lease-to-own sounds attractive to first-time home buyers, who are generally not knowledgeable or sophisticated in Real Estate matters. In fact, one nationally known investor who sells his 'system' to other investors claims that around 50% of his lease option tenants are unable to exercise their option to purchase. So they're thousands of dollars poorer than they would have been if they had simply rented at market price! No problem for the investor, though, he just finds another 'buyer'.

Here are a few guidelines for consumers to follow.

• First, if your credit is poor, talk to a credit counselor before doing anything. If you're not able to raise your credit scores enough to qualify for a loan by the time stated in the contract - don't sign it! If your credit is really bad, forget this arrangement totally.
• Watch out for pre-set purchase prices. The housing market is still dropping in values and you may be overpaying by many thousands of dollars when the contract matures. Don't allow the seller to hire the appraiser if the contract calls for that method to determine the sales price. That should be done by either you or your lender.
• Don't let the seller push you to a certain lender, either. There's too much predatory lending that still happens and if you can't get a loan through an established lender who is not affiliated with the seller that's a huge warning signal.
• Make sure that the seller has clear title to the property. There are a lot of people getting 'rights' to market or sell property that they do not own.
• Sign nothing without having it reviewed by an attorney, preferably an experience attorney that specializes in Real Estate Law. The few hundred dollars you spend there can save you a world of suffering, and a lot of lost money, later.

When you deal with Realtors(R) who are licensed by the State, they must adhere to the Real Estate laws as well as their profession's Code of Ethics. Investors have no such formal code and are guided by only their own moral compass. Buyers can have a Real Estate Professional represent them and watch out for their best interests, in most cases for free. If the time isn't right to buy now, work out a plan to get you to that goal by reducing debt, saving money and improving your credit scores.

Private Mortgage Insurance (PMI) Tax Deductible in 2007!

Anyone who purchases a home or refinances their mortgage in 2007 will be able to deduct mortgage insurance on their 2007 tax returns!

Any mortgage insurance, for new home purchases or refinances, issued between Jan. 1st and Dec. 31st, 2007 will be 100% tax deductible for borrowers whose adjusted gross income is up to $100,000. For every $1,000 they earn over that up to $109,000, the deductible percentage goes down by 10%. For example someone whose adjusted gross income is between $100,000 and $101,000 could deduct 90% of their PMI paid, etc. This applies to VA, FHA, and conventional loans with mortgage insurance.

Mortgage insurance facilitates home purchases for millions of people every year. Individual savings will vary depending on the size of the loan, and the borrower’s adjusted gross income and tax bracket. Your tax advisor can tell you how this new law would affect you. If you have any questions about this or about mortgages, please feel free to call me.

Mary Ann Becker, Progressive Mortgages 517-404-2151

My special thanks to Mary Ann Becker for sharing this news with me - and all of you! There are a few things to consider if you're shopping for a mortgage with less than 20% down. First, this will likely be of the most help to households with adjusted annual incomes between $50,000 - $100,000, and you need to itemize on your tax return to take advantage of this program. Have your lender run costs for a loan with PMI and the 'piggyback' option that best suits you to see which is best. It's also a good idea to discuss this with your tax preparer, too. For more information, see this link - http://www.usatoday.com/money/perfi/columnist/block/2006-12-11-mortgage-deduct_x.htm

And give me a call when you're ready to buy!

Should I Be Represented By A Realtor®?

Here’s a recent, true story. A friend of mine, let’s call him Jim, had been very casually looking for a home. I had done some searches for him and even showed him a couple of homes, but he and his wife were in no hurry. The plan was that they might like to downsize, so if they bought a house they would rent it out until they were ready to move in a few years. A little over a month ago they were out for a Sunday drive and saw a perfect house – and there was an ‘open house’ being conducted. They absolutely fell in love with this house.

Jim is a mechanic and the house didn’t have a garage, but the lot was big enough to accommodate a garage, according to the listing agent. They walked out to where the lot (supposedly) ended, and promptly wrote an offer which was accepted. The listing agent did ask Jim if he was working with a Realtor®, and Jim did think about me, but he thought that he could get a commission discount by going through the listing agent – after all she was going to get the whole thing – no split with another agent. Well, as you might guess, that didn’t happen.

The process continued, and literally at the closing table, Jim and his wife found out that the lot dimensions explained to him were incorrect. In fact, the lot ended about 8 feet from the side of his house. No room for a garage. The sellers were unaware of their agent’s lot line representation to Jim and his wife. It might have been an innocent mistake by the agent, or that she was excited with having a ‘live’ buyer in this slower market and didn’t take time to make sure that the info was correct.

Jim is a good guy. He and his wife just loved the house anyway and didn’t want to mess up the plans of the sellers, so they went through with the closing and bought the house.

He called me the next day to ask if he had recourse. Of course he had a number of options to pursue, all of which would cost him in time, energy and legal fees. He decided to negotiate with a neighbor to buy enough of the adjacent lot so he could build the garage.

Jim is like the rest of us. We all need to make our money stretch. In this case, he thought he could save on the purchase price by getting the listing agent to kick in part of her commission. Of course, that never happened. But more importantly, he was working with an agent who had fiduciary responsibilities to the sellers, not to him and his wife.

If he had been working with a Realtor serving him as a Buyer’s Representative, that agent would have verified all of the details of the listing, reviewed the title work, and made sure that the seller provided a survey. If there were discrepancies, Jim would have had an ‘out’ in the contract, or at least we could have re-negotiated the purchase price. In this case he will pay more because he has to buy land from the neighbor.

I would certainly represent myself in a Real Estate transaction with the knowledge, experience and skill that I have obtained in my field, but I wouldn’t attempt to make a major mechanical repair on any of the family vehicles. Real Estate transactions can be very complicated, and while some transactions are conducted without the aid of a Real Estate professional, my belief is that they will go smoother, be less stressful, and you’ll have fewer surprises than if you try to do it on your own.

Jim did tell me that he will always be represented in future Real Estate transactions, but it was a tough - and expensive way to find that out.

2005 Livingston County Vacant Land Sales

Land sales, as reported through the multilist system, were down about 17% from 2004. But that doesn't mean that it was necessarily a sluggish year. Overall, there were 417 pieces of land reported sold. That does not account for private sales (For Sale By Owner), and not all production builders report every sale through the multilist.



The above chart represents a breakdown by parcel size, days on the market (DOM) and sale price. It's interesting to see that the smaller lots (under 2 acres) sold at a higher median price than the next larger grouping (2 to 4.9 acres). Further examination shows that 40% of the under-2 acre pieces had a curbed street - which means they were in a development - either a site condominium project or a planned unit development.

It's not unusual to see these lots go for a premium price for their size since the developer has put in a hard road, curbs, and sometimes sidewalks, too. They often have underground utilities, and may be connected to a local sewer district if the density is high. All of these amenities cost the developer, and those costs are passed on to the consumer. These lots are often less than a half-acre in size, creating a denser community.

The sold data gives us an average of 34.75 sales per month for 2005. If you compare that to land that is currently offered for sale, we have 1,370 lots available in all sizes. If they were all priced properly (priced realistically to sell), there would be a 39 month supply (1,370 lots divided by 34.75 sales/month). But we know that not every piece of vacant land - as with houses, cars, or anything else - is priced realistically.

The 'Days On The Market' are much larger for currently listed parcels than those of the sold properties. Since those are average figures, it indicates that some land has been listed for a lengthy amount of time.

There are so many factors that influence the final market value of vacant land. In some ways, it is more difficult to price properly than a home. If you're considering buying or selling vacant land it's important that you work with a Realtor who knows what these factors are, and how much or little they contribute to the final value of land.

There is a constant and continued interest from consumers searching for land on which to build homes. Modular homes are especially popular. Smaller, non-production builders area also on the lookout for a nice piece of land, as well.

I get many, many calls every month from people who have newer, larger, beautiful manufactured homes, too. They are getting squeezed by lot rent increases and want to find land where they know the amount of their monthly payment. Unfortunately, this requires a lot of work as some Townships have specific areas zoned for this type of home, or there are private deed restrictions preventing their placement.

If you're considering a land sale in my market area, I'd like very much to go over the many items that affect the marketing price. If you're a purchaser, I'd also like to work with you, but in any case make sure that you find a knowledgeable, local Realtor. There are too many nuances that are missed if both you and your agent aren't from the immediate area. I work with consumers and builders on vacant land acquisition and sales. Feel free to call or email with any questions that you might want answered.

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.