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.

Local Realtors Join In Relief Efforts

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

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

Habitat For Humanity Fund Raiser

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

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

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

Selling Quickly - Bucking the Trend

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

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

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

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

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

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

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

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