MI Real Estate Answers: How Can I Get What My Home Is Worth?

Q. I want to move to a bigger house but every agent I talk to tells me I won't get what I want. It's not that I "want" it, I need it be able to make a move.

A. If you're serious about selling, better to price where the market is selling rather than 'chase the market down', by continuing to reduce your price. This usually results in a longer time on the market plus a perception by buyers that there is something 'wrong' with your house because it has been on the market so long.

That said, you can ask whatever you want for your home. The rub comes after you've found a willing and able buyer ready to pay your price because your home needs to appraise for the selling price. Appraisers will use the very same comparable homes that the agents have shown you.

Remember, the beauty of this market is that although you'll take a hit on your home, you'll also be paying a lower price for your new home!

Listen Up 1st Time Buyers...Free $$ and Details on the $8,000 Tax Credit

If you've been renting an apartment or leasing a home for awhile in Northville, Plymouth or the surrounding area, this might be the perfect year to buy your first home.



In addition to the low interest rates and great deals out there right now, the big advantage to buying before the end of 2009 is the $8,000 tax credit enacted by Congress this year to stimulate the housing market. Unlike the 2008 credit, the 2009 tax credit does not have to be paid back.

Here's a great video about the First-Time Home Buyer Tax Credit with answers to a lot of questions you might have:



Plus here's a matrix outlining the tax credit. And if you'd like to explore your housing options further, give me a call!

2614 Brookfield St, Canton MI 48188 | Just Listed For Sale

AWESOME LOCATION IN BACK OF SUB WITH WOODED VIEW! Updated Colonial With Oak Cabinets, Family Room With Gas Fireplace, Ceiling Fans, Newer Tear-off Roof, Vinyl Windows & Pergo Flooring * 13' x 11' 3-Season Room To Enjoy Overlooking Fenced Backyard With Shed Backing to Beautiful Protected Woodlands * Community Park in Sub For Recreational Activities.

Property information ~~ $174,000
1,421sf, 3 Bedroom, 1.1 Bath Colonial

January 2009 Market Report

I know, its the first day of March, but better late than never.

The January statistics issued by our local MLS Realcomp indicated home sales continued their upward trend. In fact, sales increased 25.7% over January 2008.

Most home sellers who don't have to sell are staying put or leasing until things start to recover. Most homes on the market are well priced and inventory is down 21.1% over January 2008.

The first-time home buyer market remains strong and should continue with the recent passage of the $8,000 credit for first time buyers, which unlike the 2008 credit, doesn't have to be paid back. That's a nice incentive, which should hopefully spur more sales enabling move-up buyers to make their moves.

With changes every day, it's hard to keep up, but here are a few interesting stories I've come across:

• Freddie Mac to let residents rent homes after foreclosure
• MSNBC FirstRead's explanation of the Homeowner Afforability and Stability Plan
• A blog post with several resources for laid off workers
• Detroit Free Press article with advice for tax appeals

By the way, if you know anyone Michigan homeowners struggling to make their mortgage payments who might be facing foreclosure, please have them visit Save The Dream operated by the Michigan State Housing Development Authority (MSHDA). Their toll-free number is 866-946-7432 and directs homeowners to a foreclosure prevention counselor in their county.

MI Real Estate Answers: HUD home or Fannie Mae?

Q. If you had a choice between buying a home owned by Fannie Mae or HUD, which one would you choose, all things being equal?

A. What is most important is finding a home you're crazy about in an area you like that is mechanical sound. That said, however, the advantage of HUD is that they are offering a $2,500 owner occupant incentive which is applied toward your either your closing costs, tax prorations & repairs to the home. If all other things are equal, that's pretty nice incentive.

When you couple that with the $8,000 tax credit given to first time buyers through the end of December, 2009 is a great time to jump into the housing market!

From Colonials to Cape Cods...Classifying Real Estate in SE Michigan

Not sure of the difference between a colonial style house and one that's called a cape cod? Can't describe what classifies a home as a Victorian versus a Craftman? Don't feel bad, you're not alone.

Thankfully, you can visit RemodelingCenter.com to view a slideshow showing examples and explaining the differences.

For more renovating ideas, click on their related links to tour a remodeled Craftsman-Style Foursquare or a beautifully renovated Cottage-Style home.

MI Real Estate Answers: Westland City Inspections

Q. I'm interested in a Westland MI home that's a short sale. Who pays for real estate city inspections and how do I know if one has been done?

A. Unless specifically negotiated in the purchase agreement, it's the seller's responsibility to schedule and pay for the inspection, which is $180 for a single family residence. A City inspector reviews the major mechanical systems, health & safety items, and any issues that violate the Property Maintenance Codes.

Call the City of Westland Building Department at (734) 467-3210 (Google any "City State Building Department") to see if the inspection has been completed. If it has, you can go into their office and review the report. If it hasn't, I'd have your agent call the listing agent to find out when they plan to do it.

Since it's a short sale, if there are any issues that need to be addressed from the inspection, the seller may not have the funds to address the issues. Because the inspection period can take 3-4 weeks, it's important that it be done ASAP so that the bank is aware of any issues that need to be addressed to sell the property.

32564 Benson Ct | Westland MI 48185 Just Listed For Sale

Great Location on Low Traffic Cul-De-Sac with Livonia Schools

Bay Window & Spacious Cathedral Ceiling in Living Room & Bedroom * Newer Furnace, Central Air, Roof & Some Newer Windows * Great Breezeway Adjoining 2.5 Car Garage & Patio Overlooking Backyard Surounded by Privacy Fence * Closing & Commission Subject To 3rd Party Approval

Property information ~ $125,000
1,710sf, 4 bedroom, 1.1 bath tri-level

Answers to "How Long Does That Last?"

Did you know that dryers have a life expectancy of 10-25 years? Or that it costs $7,500-10,000 to convert a hot water boiler heater to a forced air furnace?

The Pillar To Post website offers a great tool showing the estimated life of appliances and major systems and components in a home. They also estimate the cost of replacing them, as well as the cost of home repairs.

Once you have the page open, click on the left-hand side to "Expand All" so you can view the details...Did you know metal roofs last 60 years?

Southeast Michigan December 2009 Market Report

Residential sales ended 2008 up 19% higher than 2007 with December's strong finish. In fact, according to Realcomp, every county in the entire MLS showed increased sales and pending sales, which bodes well for 2009.

Sales for the entire MLS during December 2008 were up 31.6% over December 2007, reflecting the 12th straight month of growth.

Strong 2008 starter home sales (those priced under $125K) were up 61% over 2007 due in large part to affordable home prices and low interest rates.

Even though December's inventory was down over 18% over December 2007, the supply of homes remains greater than the demand. Therefore homes selling in this buyer's market are priced to sell.

Market activity has started strong this year. It's still a wonderful time for first time homeowners to take advantage of low interest rates and values.

January is National Radon Prevention Month

The Environmental Protection Agency (EPA) designates January as "National Radon Prevention Month".Radon is an odorless, colorless gas that is naturally occurring in the earth's crust and sometimes seeps into homes through openings in foundations or walls. It is the leading cause of lung cancer among non-smokers, and the second leading cause among smokers.

In August I wrote a blog post on the importance of testing for Radon because of a recent experience with a crazy high radon reading in one of my listing.

According to a proclamation signed by Governor Granholm last year, one in eight homes in Michigan (EPA's map of Michigan radon zones) have elevated levels of radon. Homes with 4 picoCuries per liter (pCi/L) or higher should be remediated. Consider purchasing a radon detection kit if it wasn't part of the home inspection process when you bought your home.

For more information about radon, check out these sources:

Reducing Radon Risks, Michigan Department of Environmental Quality
A Citizen's Guide to Radon: The Guide to Protecting Yourself and Your Family from Radon,
U.S. Environmental Protection Agency
EPA Video Radon Discussion

To Sell or To Lease...That is the Question

The good thing about making a move in this real estate market is that there are lots of good deals out there. The question is, what do you do with your home?

When faced with that situation, many Northville MI owners are opting to lease. Before you consider leasing, you should first check with your lender to get preapproved to make sure you can afford your next home. Also, check your existing mortgage because leasing may invalidate the terms.

I've heard homeowners with good and bad leasing experiences. Many would simply prefer not to become landlords. If you do opt to lease your home, be sure you request a credit report as well as personal and landlord references.

Then, read through the State of Michigan Tenant/Landlord Handbook to research and become familar with your responsibilities as a landlord should you go that route.

Whatever you decide to do, Good luck!

A Grain of Salt

This morning I answered a question on a popular real estate site about how a Livonia MI home could sell so cheaply ($90K) in an area of expensive homes without being listed for sale.

Turns out the home in question was in a new subdivision of about 70 homes so it was purchased through the builder. Upon further investigation, I discovered that after the transaction closed, only the sale of the parcel of land was recorded as the real estate 'sale' on public records. Also recorded was mortgage for over $300K. That doesn't account for how much the Buyer might have paid as a down payment.

It's become so easy to do home value research online through sites like Zillow and Trulia. However, until each municipality standardizes how new construction transactions are to be recorded, data will continue to be skewed and deceptive.

Your best resource for local home values is still a local professional real estate agent who can fill in the full picture for you.

Hurry...$7,500 Home Credit Ends July 1st

In my July Market Report, I mentioned that The American Housing Rescue and Foreclosure Prevention Act includes provisions to help homeowners keep their homes.

Another provision provides a tax credit of up to a $7,500 (10% of the purchase price) for first time home buyers. Effectively, it's a 15-year no interest loan with payments approximately $500 per year, depending on the amount of credit you claimed.

This important credit applies to homes purchased by July 1, 2009 so if you or someone you know is thinking of making the move, now is the perfect time to start looking.

Remember, a mortgage payment may well be cheaper than paying rent...and you pocket the tax benefits instead of your landlord!

Remembering the Past...And Looking Ahead

Wow, were you as glad to leave 2008 behind as I was?

When I wrote my last post of 2007, I thought we would turn the corner in 2008. Boy was I wrong. An economic meltdown on a national level compounded the financial chaos (as if local Michigan real estate wasn't bad enough already). It was enough to make me say good riddance to a year that on the surface seemed like a loser.

But upon reflecting, there were some highlights that made the year great professionally and personally:

• my online efforts have yielded a substantial increase in business
• community and veteran involvement has been a rewarding experience
• my daughter graduated from college & bought a new home

I'm excited to begin this brand new year and I look forward to getting used to our "empty nest" status and continuing my work with community and veteran's organization. My professional commitment this year is to leverage my knowledge of real estate technology with social media to connect with and serve consumer real estate needs in this new Web 2.0 era.

I'm looking forward to new beginnings with the promise of a fresh new year. I wish you and yours a peaceful, prosperous and very Happy New Year!

Icy Danger Lurking Overhead

With all the snow we've had so far this year, it's the perfect storm for ice dams to form on your roof.

What are ice dams?

Ice dams are formations that occur at the edge of a roof near the gutters or soffits when snow melts and refreezes. Icicles are often a telltale sign. Once formed, water backs up behind the ice dam pooling and infiltrating your home, which can cause significant damage.

The best prevention is adequate ventilation and proper insulation of your home to prevent an overly warm attic. Additionally, the roof should have a vapor barrier under the roofing material to help prevent an ice dam.

Keep a close eye on your roof to recognize if maintenance and/or repair is required when weather permits. And stay warm out there!

Photo courtesy of melaniejo

November 2008 Market Report

It's been a crazy month with tons of economic news, and lots of it not so good. With the Detroit 3 thrown a lifeline just in time for the holidays, let's hope that the rest of the economy stabilizes soon so people start buying cars again.

The local real estate market had record sales again for the 11th straight month in 2008, with an increase of 20.5% over November 2007. Realcomp, our local MLS, reports that 2008 year-to-date sales increased 18.1% over 2007. Oakland County posted the highest percentage sales increase for November at 31.8%.

There are a couple of factors for the continued strong market activity. First, starter home sales (those valued up to $124,999) for first time buyers is up by 60% over last year. Secondly, inventory is down 17.72% and homes are priced aggressively. Lastly, interest rates are good and getting better. With the recent Fed rate cut, pressure is mounting to reduce mortgage interest rates. There may never be a better time to buy or refinance.

According to most economists, a recovery is not expected until late 2009. We're all in this together, so keep being thrifty, continue to tighten your belt, and hang on for the bumpy ride.

If someone you know is unable to keep up with their mortgage payment, have them check out HOPE for Homeowners by the Federal Housing Administration, US Dept of Housing & Urban Development for assistance options.

Here are some links to keep track of the important items that have happened this year:
Mortgage Forgiveness Debt Relief Act
Summary of Economic Stabilization Act by the National Association of Realtors
Tax Credit to Aid First Time Homebuyers by the Internal Revenue Service

17438 Farmcrest Ln | Northville MI 48168 Just Listed For Sale

A NORTHVILLE BEAUTY…Updated And Shows Like A Model! Hardwood Floors, Berber Carpeting, New Colors, Absolutely Perfect New Kitchen With All The Amenities * Door Wall Leads To Brand New Decking * Updated Baths & Large Library For Home Office * Professionally Finished Lower Level Adds 1000sf With Wet Bar * Newer Dimensional Roof, Recreational Area, And Sprinkler System

Property information ~ $359,900
2,626sf, 4 bedroom, 2.1 bath Colonial

Taking The Leap & Leaving The Nest

There has never been a better time to buy your first home than right now. Given the current economy, you probably think I'm crazy, but hear me out.

First of all, interest rates are still really great and there are rumbles about them getting better. Second is the first time homebuyer tax credit passed this year. And third, the mortgage is likely to be cheaper than paying rent.

Case in point, my daughter.

After she graduated from college in May, we started running some numbers in preparation for her leaving the nest. She was looking at between $600-750 per month for a small apartment. Based on what I was seeing on the market, I suggested we investigate foreclosed & HUD homes.

Long story short...we found a really great 3 bedroom, 2 bath brick ranch with finished basement, fenced yard and 2 car garage for $50K. Her payment? Under $600 a month!

Are there still great deals out there? Absolutely...and some of them are not even HUD or bank-owned. Some sellers just need to move now.

If you're been thinking about taking the leap, be sure to work with a buyer's agent who can look out for your best interests and research potential problems. And if you check out HUD homes, make sure make sure you're working with an agent whose brokerage is approved by HUD to submit electronic bids.

October Market Report

For the 10th straight month in a row, sales were up over 2007 for total of 27.7% in the MLS area. With lots of competition from bank & government-owned homes and short sales, owners are continuing to hold their homes off the market until it stabilizes so the number of homes on the market has continued to decline.

Homes priced competitively are selling and the number of starter homes (those priced under $125K) sold this year has surpassed 2007. In fact, 53% of all homes sales were below $100K!

Activity has definitely slowed with all the market chaos so next month's numbers will be interesting to see. It's still a great time to buy for first time buyers, particularly owner-occupied HUD homes which require only $500 down. For example, my daughter recently bought a home that was far cheaper than what she would be paying in rent!

Like shifting sands under our feet, it's difficult to keep up with the changes happening around us, but here are a few links to some of the important items that have happened this year:
Mortgage Forgiveness Debt Relief Act
Summary of Economic Stabilization Act by the National Association of Realtors
Tax Credit to Aid First Time Homebuyers by the Internal Revenue Service