Wednesday, June 30, 2004

Tales From The Home Improvement Front, Part 1

As many of you know, Dan and I bought a home last Fall needing updates throughout, but especially to those all important areas--kitchen, flooring & baths. While the idea sounded appealing to do what we want to make it our own, it's been a challenge living in a demolition zone.

Before moving in Dan tore off and re-roofed the entire home, I pulled up the carpet and had the hardwood floors refinished, and we hired painters to paint the entire interior of the home. After we moved in, Dan installed crown moldings, six-panel doors, new lighting fixtures, and tiled the entry to give it an updated feel.

While we've accomplished a lot, Dan's recent kitchen/powder room renovation seems like it's dragging on forever. The photo below shows what our kitchen looked like two months ago. Thankfully, we're further along now but our early Summer deadline is looking more like August...hopefully.

So, here are my three rules of thumb for home improvement projects:
1) It will take longer than you planned,
2) It will cost more than you think, and
3) Your local home improvement store will become your 2nd home.

I'll keep you posted on our progress, and I wish you good luck on your Summer projects!

Kitchen in Transition Posted by Hello

Monday, June 28, 2004

Top Home Improvement Projects

According to a recent article on Homestore.com, the top five home improvement projects are kitchen remodeling, bathroom remodeling, bathroom addition, family room addition, and master suite addition.

Before you tackle a major project however, consider how much you want to spend and how much value it will add to your home. The return on investment varies by geographical location, but according to Remodeling Magazine, the average cost recouped was 86.4% in 2003.

If you don't want to tackle a major project, check out the 10 tricks for a low-cost, high-impact home upgrade on Bankrate.com. From curb appeal to inexpensive decorating techniques, small changes can make a big difference.

While recouping your remodeling investment is an important consideration, more importantly, it can drastically improve the enjoyment of your home. In fact, many homeowners are choosing to remodel and stay in their homes rather than purchase a new home. As an added bonus, when you are eventually ready to sell, an updated home tends to sell much more quickly for top dollar.

Friday, June 25, 2004

To FSBO or Not

If you're thinking of putting your home on the market, you've probably considered selling it yourself. I did that once before I got into the business. I gladly paid the commission on my next two homes to avoid the stressful experience again. So here is my perspective from both sides of the fence.

By and large, the Detroit Metro market is a buyer's market with six months to a year's worth of inventory for competition. As a For Sale By Owner (FSBO), you must be willing to do some heavy advertising otherwise you're limiting your market to only those few people who happen to drive by. Recently when I asked a FSBO what kind of response they'd gotten, they said lots--from real estate agents who want to list their homes, but few qualified buyers.

You also need to be available to answer the call when a buyer inquires. In fact, when I left a message for a FSBO to return my call regarding buyers I'm working with, the FSBO seller called days later. In this case, buyers will just move on to the next home, or find an agent to help them with homes that are listed and easy to show.

Today's buyers are very savvy and they are looking for sellers in desperate situations. Make sure you know the value of your home by getting a market evaluation comparing your home to others that have sold in the neighborhood. Even with your home competitively priced however, be prepared for the first thing a buyer does when making an offer--deduct the commission you're saving right off the top.

In a traditional real estate transaction, once the offer is accepted, the agent works behind the scenes to coodinate a seamless closing. These duties include investigating the buyer's preapproval with the lender, coordinating the inspection and coming to terms on resulting issues, reviewing title work, completing the appraisal, ensuring underwriting is timely, scheduling a walk-through, and checking closing documents--all to get to the closing table on time. Besides your regular job, packing, and preparing for your move, you'll need to juggle all these responsibilities as well.

Still thinking of selling your own home? Clip your cell phone to your hip, put the sign in the yard, place an ad in the newspaper, stock up on antacids, and cross your fingers!

Thursday, June 24, 2004

C.L.U.E. Is Not A Game!

It's no secret that insurance companies have suffered great losses the past few years. Many are taking the offensive and are increasingly using the Comprehensive Loss Underwriting Exchange (C.L.U.E.) database to track claims and losses. While on the surface this might sound innocent enough, information stays in the database for up to 5 years. However, this database is used by other insurers and it could profoundly impact you.

For example, according to a CNBC Money article, a couple in Washington reported a minor water leak to their insurer State Farm. They had not filed a claim in 30 years and ultimately decided not to file one in this case. State Farm, however, cancelled them and reported the information about the home in the C.L.U.E. database. Consequently, other insurers wouldn't write a policy on the home basing their decision on State Farm's damage report.

Although the couple was able to get a bare-bones fire policy for three times the previous full coverage rate, more problems could arise when they try to sell the home if the purchasers are unable to insure the home. In fact, when acting as a buyer's agent, I have begun recommending that purchasers investigate insurance coverage on the home during the inspection period. That way there are no nasty surprises when it comes time to close.

According to the CNBC Money article, the best way to protect yourself is keep your home in good repair, think twice about reporting water-related claims, don't tell your insurer about problems unless you intend to file a claim, and consider getting a copy of your C.L.U.E. report. You can order a copy of your home's C.L.U.E. report for $9 from ChoicePoint, the company that operates the C.L.U.E. database. If you've been denied coverage you can obtain a copy for free.

Tuesday, June 22, 2004

Is An Interest-Only Mortgage For You?

Interest-only mortgages have had a lot of press lately. At first glance, you might wonder who would want a mortgage that doesn't pay off principal from the beginning of the loan. Yet for many, the advantages of these mortgages are just exactly what the purchasers need.

There are a variety of products available, including fixed rate and adjustable mortgages. At the end of the interest-only term, the mortgages are re-amortized over the remaining term of the loan. These mortgages can be a good choice for purchasers who intend to sell or refinance before the interest-only period expires.

Interest-only mortgages are particularly popular among buyers who feel confident they will be getting pay raises in the future, but want a home they might not otherwise be able to afford. They are also appealing to those buyers who prefer to leverage or invest their principal elsewhere, as well as to those who have sporadic income.

The downside of these mortgages is that without paying down the principal, purchasers must rely on the market to build equity. A downturn in the market could be a big problem if they need to sell sooner than expected.

The bottomline is it all depends on the situation and future plans.

Monday, June 21, 2004

Livonia Spree Birthday Bash

Tomorrow kicks off the Livonia Spree, a week-long birthday party for the people of Livonia to celebrate the founding of the city. Enjoy great food, special entertainment, music ranging from country to jazz, a fun family carnival, and the Grand Finale Fireworks Extravaganza on Sunday.

Any proceeds over and above the reserve needed to host next year's celebration are donated back to the community. In the past, Spree has supported All-Night Graduation parties, St. Mary Mercy Hospital’s Angela Hospice, First Step, Livonia Community Foundation, American Cancer Society, Livonia Orchestra and the Spree Scholarship program.

For general information and a daily calendar of events, check out the links below:

Hours, Parking, & General Info

Daily Schedule of Events

Even if you don't attend the Spree, test your knowledge of Livonia Trivia & Fun Facts at the official Spree website.

Sunday, June 20, 2004

Remembering Fathers Every Day

Our teenage daughter Daisy is nearly 19 and sometimes we feel like we are ships passing in the night. With Father's Day approaching, earlier this week my husband Dan wrote the following poem for our daughter Daisy:

It's getting near that time of year
That my straining ears may hear
My precious daughter Daisy say
"Hey Dad...come over here."

Now I don't mean to sound ungrateful
I know she means the best
It's just I miss the daily 'hi', a hug and maybe a kiss
Of late it's more a grumble, growl and hiss.

She's studying hard for classes
Working hard as well
Someday she'll join the po-lice force
And give the villians hell.

It's just that an "I love you Dad"
Or "can you talk awhile"
Would sure be nice without the holiday
To make her old man smile.

I know she has my e-mail
Has my cell phone number too
Remember: roses aren't my favorite flower
Daisy, that's reserved for you!

Luvya, Dad-Dawg


Honoring Fathers out there today and every day!

Dan and Daisy Posted by Hello

Saturday, June 19, 2004

Another Round, Another Deadline

According to the Detroit Free Press, on Friday, June 19th the Michigan Department of Management and Budget accepted the $55 million bid from Real Estate Interests Group, Inc. (REI) for the former Northville Psychiatric Hospital site. Bloomfield Hills based REI beat out Konstar LLC of Auburn Hills ($36 million) and Rock Construction Company Inc. of Livonia ($43.5 million) in the fourth round of bidding for the 422-acre property on the south side of 7 Mile Road in Northville Township. This is the fourth round of bidding for the parcel which is expected to bring residential and commercial development.

REI's environmental assessment deadline for the property is scheduled to be completed by September 15th.

Friday, June 18, 2004

Father's Day Activity Idea

Have you checked out Northville's "Art in the Sun"? Over 130 exhibitors from Michigan and the surrounding states will be participating in the juried art show this weekend. Presented by the Northville Chamber of Commerce, guests can enjoy the unique products, savor the Victorian atmosphere, check out the downtown merchants, and experience outdoor dining while listening to the entertainment in the vintage bandshell. Held on Saturday and Sunday from 10 AM to 5 PM, it's a free, fun afternoon.

Wednesday, June 16, 2004

Internet Savvy Consumers

A National Association of Realtors (NAR) recent study found that more than 70% of home buyers begin their search on the internet. Since you're reading this on-line, it's probably no big surprise to you, but that's a monumental shift in the way real estate has been sold over the years.

Typically, the tech-savvy buyer begins their search on Realtor.com--a wise choice given most MLS companies in the country directly upload their listings to Realtor.com. It's a great place to start to get an idea of communities, types of housing available, and what you can get for your money.

Because on-line buyers like to browse without commitments, many of them prefer to stay anonymous until they find something they are interested in. Only then do they contact an agent, and what they want is information NOW. This fundamental shift is shaking up an industry that used to sift through listings with knitting needles.

To impress the importance of technology upon its members, NAR sponsored the e-PRO certification developed by Internet Crusade. According to Saul Klein of Internet Crusade, the program was designed by Realtors for Realtors to make the most of available technology as they serve today's "connected consumer".

The bottom line is that if you're thinking of making a move, you should consider choosing an e-PRO. You're likely to get the service you want--and deserve.

Speaking of deserving...how about those Pistons!

Tuesday, June 15, 2004

Summer Selling in Southeast Michigan

Finally the Summer selling season is upon us! Sellers are scurrying to ready their homes for this traditionally busy time of year, whether they are preparing to sell their homes themselves or enlist the help of an agent.

We've heard of swift selling markets in other parts of the county, but by and large, we're still in a Buyer's market. There are pockets of homes that sell quickly, but there are also a large number of homes on the market competing for Buyers who are hesitant to 'jump in'. Thankfully interest rates have stayed low, but there are signs they are on the way up.

If you're thinking of selling, prepare your home to look as close to model perfect as you can. Outshine the competition and blow away the Buyers!

If you're thinking of buying, it's a great time. Lots of inventory, interest rates are still low, and you can move in and still enjoy some serious barbeque time!

Until next time, enjoy the season, soak in some sun & GO Pistons!