Archive for Real Estate

The Basic Facts About Short Sales

Posted in Real Estate by Michigan Real Estate Expert on April 26th, 2018

The Basic Facts About Short SalesAs a potential home buyer, you are probably familiar with what a typical sale looks like. You probably also have a basic understanding of what a foreclosure is and how it works. Another type of sale that may be less understood is called a short sale.

These sales are not as popular in the market, but you may come across a few. You may even fall in love with a home that is listed as a short sale. What does this mean for you as the buyer? These are the basic facts that you need to know about these homes and the process for purchase. 

What Is A Short Sale?

A short sale is negotiated when the lender for the current homeowner’s mortgage agrees to list the house for a smaller mortgage payoff amount. This means that they will be taking in less money than what is owed on the property in order for it to sell quickly on the market.

This usually happens when the current owner of the property, the seller, is in a distressed financial state. There are many reasons why a seller may have lost the ability to pay their mortgage, such as losing income or unexpected expenses. Maybe the owners are going through a complicated divorce and need to unload the property. Regardless of the reason, the lender has an incentive to remedy this situation.

How Does It Work For The Buyer?

When it comes to purchasing a short sale property, the process is not much different than purchasing any other home on the market. The lender will want to make sure that you will be able to complete the purchase, especially under these circumstances, so you will likely need to be preapproved or prequalified before your offer can be accepted. 

One major difference is that the process is typically more drawn out than if you were making a traditional home purchase. Even though it is called a short sale, it is not something that happens very quickly. In fact, it can take an average of 2 to 4 months for a short sale to be approved and for the actual closing to take place. 

Now that you understand the basics of a short sale and how it works, you can decide if it is something that may fit into your criteria and timeline. If so, and you do find a home you love, you should not let something like a short sale stop you from getting it. Your real estate agent can help navigate you through the process to make it as simple as possible. 

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Thinking About Buying A Fixer-Upper? Know These Top Resources To Make The Most Profit

Posted in Real Estate by Michigan Real Estate Expert on April 24th, 2018

Thinking About Buying A Fixer-Upper? Know These Top Resources To Make The Most ProfitIf your financial situation is limited, yet you’re handy with a hammer and nails, then purchasing a fixer-upper home can be an attractive option. Fixer-uppers typically require a bevy of updates and repairs to bring the home up to current market conditions. Because of this, the listing price is often considerably less than a move-in ready home.  Your trusted real estate professional can help you find the best projects to buy and sell.

Getting Started

Fixer-uppers aren’t for everyone, but there are plenty of resources available if you plan to do most of the repair and upgrades yourself. Let’s take a look at a few top resources to tap into if you’re in the market for a fixer-upper or if you’ve already purchased one and you are ready to get started.

  • At Home: A Blog by Joanna Gaines: Chip and Joanna Gaines are well known HGTV personalities who’ve made it their mission to fix up homes. A visit to Joanna Gaines’ blog is a gateway to renovation and decorating tips, products and real-time photos of projects in action. It’s a great place to go for inspiration.
  • Hands-On Workshops: If there’s a Home Depot near your home, chances are you frequent it for many of your hardware needs. There’s another reason you should stop in: Hands-On Workshops. If you want guidance on things like installing bath vanities, tile backsplashes, hanging ceiling fans, or measuring and installing flooring, there’s likely an upcoming workshop at the store that can give you the know-how and confidence necessary to do it yourself.
  • Jeff Patterson’s Home Repair Tutor: This YouTube channel boasts almost 120,000 subscribers and its how-to videos have racked up more than 30.5 million views. Videos include everything from how to tile a shower floor to installing a motion sensor light switch. If you need detailed step-by-step instructions on how to perform a particular job, chances are good this channel has it.
  • The Craftsman Blog: Written by DIY fixer-upper and author Scott Sidler, this blog is packed with how-to advice for home improvement and restoration projects as well as general tips and information about repairs like painting, plastering and restoring windows. This is a blog for a DIY fixer-upper written by a DIY fixer-upper. 
  • Your local hardware store: The big box hardware stores are great for finding just about any sort of tool you’ll need and for hosting how-to workshops. Generally, however, it’s your local, smaller hardware store that can really give you some great one-on-one advice as it pertains to your projects. These stores are typically family owned, and part of the reason they’re able to stay in business is because of their high level of customer service. This often includes guiding you on certain projects.

A fixer-upper can seem like a daunting project when you are getting started. Knowing where to look for the right resources can make a big difference.  Your trusted real estate professional is available to assist you and offer additional advice on your new endeavor.

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Best Tax Deductible Home Improvements for Homeowners

Posted in Real Estate by Michigan Real Estate Expert on April 17th, 2018

Best Tax Deductible Home Improvements For HomeownersBefore delving into tax-deductible home improvements, it’s important to understand that these tax deductions won’t be applied immediately. In most cases, homeowners can only benefit, tax-wise, from their home renovations later, when they sell their home.

It’s important for homeowners to keep receipts for their improvements, though so they have proof of the improvements they made, even if it’s years later when they sell their residence.

Typical Renovations/ Home Improvements That Can Yield Eventual Tax Benefits

A home improvement is any project that substantially adds value to a home. It can include adapting it to be more useful or be improvements that allow it to be used differently. The following are some general home improvements that can yield tax savings when a home is sold for a profit.

  • Room additions.
  • Upgrades to plumbing.
  • Kitchen improvements.
  • A new roof.
  • New bathrooms.
  • Upgraded landscaping.
  • Improvements to fencing.
  • New decks.
  • Improved wiring.
  • New walkways.
  • Driveway improvements.
  • Plumbing upgrades.

How Delayed Tax Benefits Work

While a homeowner can’t take the amount of money they spent on one of the above home improvements and deduct it that same tax year, they can sometimes benefit from the investment in their home. This is true because a homeowner can effectively reduce the amount of taxes they have to pay if they sell their home for a profit down the road.

When an improvement is made, the cost of those improvements are added to the tax basis of a home. The basis is the investment in a home for tax purposes. The greater this number becomes, the less the profit is from selling a home.

The following explains it a little better:

Example Of Tax Basis And Home Improvement Tax Savings

A fictional homeowner purchases their home for $600,000 and sells their home 20 years later for $1,000,000. Their original “profit” from the sale would have been $400,000, which would have been taxable income at the time of the sale. However, throughout the 15 years when they resided in the home, this homeowner made around $60,000 worth of home improvements, including a roof improvement and a kitchen update. The $60,000 is then added to the original investment this homeowner made in their home, bringing their tax basis to $660,000.

The homeowner’s profit when they sell their home is then reduced from $400,000 to $340,000. Many homeowners use home improvements as a way to reduce the amount of taxes they will one day have to pay when they sell their home for a substantial profit.

Other Ways For Homeowners To Benefit From Their Home This Tax Season

Homeowners can make their home work for them each and every tax year by qualifying for the home office deduction. This only works if they own and operate a legitimate business out of their home, though. A part of the home must be used either regularly or exclusively for the business to qualify.

The above is some pertinent information on how homeowners can use home improvements to reduce their tax burden.   As always, check with your trusted tax professional for accurate advice on your personal situation.

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Tips For Home Buying In The Digital Age

Posted in Real Estate by Michigan Real Estate Expert on April 11th, 2018

Tips For Home Buying In The Digital AgeThe digital age has changed the way buyers browse for and purchase goods and services, including real estate. While home buyers still can check out property listings via a print newspaper or by driving through desired neighborhoods in hopes of finding a “for sale” sign, digital sources offer more options and can make the home buying process easier. 

The National Association of REALTORS® (NAR) states in their 2017 Report: Real Estate in a Digital Age, that 44-percent of home buyers look online when beginning their search.

Social Media As Sources For Home Buyers

According to the Pew Research Center, 68-percent or two-thirds of U.S. adults use Facebook. In addition to that popular social media site, American adults regularly use Twitter, Instagram, Pinterest, and YouTube on a daily basis for entertainment, social engagement, shopping, and news. These sites also can be excellent sources for home buyers.

Home buyers now have instant, easy access to a wide variety of property listings beyond those featured on an individual real estate agency’s website. Many real estate agents post listings on social media with interior/exterior photos and some with virtual tours. Sites like YouTube offer valuable resources particular for first-time home buyers, from tips to how-to’s. 

Real Estate Apps

More than 90-percent of all real estate firms have a website. Visiting these sites are a great starting point and ideal way to connect with an agent that knows the local market. However, home buyers may also consider real estate apps to enhance the process. Even if not tech savvy, these apps are easy to use. 

The most used real estate apps are available for both Android and iOS. Digital Trends offers a breakdown of several of the most popular. Ask a real estate agent if they have one that’s specific to their firm.

These apps can help:

  • Customize a search by location, property type, features, and price
  • Reveal the worth or rental value of a property
  • Show floor plans and exterior/interior photos
  • Provide details about neighborhoods
  • Offer lending institution information
  • Directly connect buyers with a real estate agent

Stay Connected With A Real Estate Agent

Cell phones appear to be everywhere today and research shows that 77-percent of Americans own a smartphone. With that smartphone it’s easier than ever to stay connected with a real estate agent when buying a home. An agent can text or email potential listings to the phone, schedule open house meetings, and send updates regarding the offer just made on the perfect home.

Home buyers that can embrace the digital age have the opportunity to take advantage of the multiple platforms and tools available for making a real estate purchase. 

 

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Green Technology To Reduce Your Home’s Carbon Footprint

Posted in Mortgage,Real Estate by Michigan Real Estate Expert on April 10th, 2018

Green Technology To Reduce Your Home's Carbon FootprintWhen you are a homeowner looking to reduce your carbon footprint, there are a number of steps you can take to make your home earth-friendly. From passive solar heating to solar panels, you can make a difference in the impact your home has on the environment.

Even when you aren’t building a new home, changes can be made to an existing property to increase efficiency and reduce reliance on utility systems.

Invest In Solar Power

Solar panels are one of the most popular ways to reduce your carbon footprint, and with good reason. Solar panels often produce enough electricity so that you have energy to sell back to the energy grid every month. Over time, solar panels on your property can earn you money instead of costing money in utility bills.

Consider Passive Solar Designs

Passive solar is heating your home with the sun by using the right design. For example, certain materials such as slate holds heat. If you have a room that gets plenty of sunlight during the day, a slate floor can help keep the room warmer once the sun sets. If the floor is made from a material that dissipates heat, such as ceramic tile, your home won’t benefit from the sun once it sets.

Radiant Floor Heating Saves On Energy Costs

Heat rises, and those that invest in radiant floor heating find that it is easier to heat up a room. Radiant floor heating uses coils below the surface of your floor, creating heat. The heat rises into the room instead of getting blown in through a heating vent. This reduces the amount of energy you need to heat your home.

Invest In Energy Efficient Appliances

Every appliance that you use in your home has an impact. Consider investing in energy efficient appliances when you are trying to make your home more earth friendly. You will save money on utility costs and help the environment at the same time.

Consider a Clothesline

The energy used to heat your clothes and dry them can be eliminated if you simply hang everything outside to dry. While this adds to your workload, it is a free way to reduce your carbon footprint.

When you have a home, there are a number of ways you can help reduce your impact on the environment. Set up a recycling area in your home, have a vegetable garden if possible, and use electricity only when necessary.

Enjoy your space and don’t be afraid to try new ideas to reduce waste within your home.

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6 Money Making Tips For The First Time Home Seller

Posted in Real Estate by Michigan Real Estate Expert on April 3rd, 2018

6 Money Making Tips For The First Time Home SellerToday’s homebuyers can have specific ideas and personal preferences that influence their decision on what attracts them to a particular property. While some prefer a fixer-upper, many desire a home that’s as close to turn-key as possible.

First time home sellers may help expedite the process with these six home selling tips. 

Determine Right Listing Price

A home priced competitively in its market typically sells faster. Professional REALTORS® know the area and look at comparative listings to help determine the right listing price.

First time home sellers often think their home should list higher, and this can turn away buyers. Trust a real estate agent to know the right price that will attract potential buyers for a sale that makes all parties happy.

Curb Appeal Makes a Difference

Great curb appeal has the power to attract buyers and create a positive first impression. Simple enhancements add to curb appeal:

  • Mow the lawn or make sure the walk/driveway is clear of snow/ice
  • Prune overhanging branches and trim bushes
  • Remove any sickly or dead vegetation
  • Replenish missing mulch or rocks in landscape beds
  • Replace worn house numbers and/or mailbox
  • Add fresh potted plants to porch for pop of color
  • De-clutter yard by removing lawn ornaments/art and all kids’ toys
  • Have all exterior lighting in working condition

A fresh coat of paint on the front door, clean windows, and a sidewalk swept free from leaves and debris also add to the overall welcoming look. 

De-clutter and Depersonalize

Once potential buyers enter the home, it’s time to make another important impression. Homebuyers should be able to visualize themselves living in the space.

De-cluttering and depersonalizing the home helps. The fewer items in a room, the larger the space feels. Key areas to de-clutter include the kitchen and bathroom, in particular the countertops. Remove all personal items, storing out-of-sight in a closet or cabinet. 

In addition, remove personal photographs and large collections if possible. Children’s rooms don’t need to be completely depersonalized, but it’s essential to de-clutter the space to show it to its best advantage.  

Repairs and Replacements

Every home has a few small items that need repair but have fallen to low priority. Before listing the home, take the time to make these repairs and replacements.

Tighten that loose cabinet in the kitchen, replace the torn bathroom window screen, and refresh the caulk in the showers. Sometimes it’s the little things that turn off homebuyers and these small repairs may be the tipping point for a sale. 

Offer the Extras

In a competitive market, offer extras to entice buyers. Generally, these extras are appliances that stay with the home as part of the sale. Other extras a seller may include within the price of the home are items like window treatments and outdoor accessories like patio furniture. 

Consider a Pre-inspection

A pre-inspection can help reduce concerns potential buyers have regarding the home’s current condition. It’s a way to reassure buyers that the house doesn’t have any hidden issues.

However, getting a pre-inspection doesn’t mean homebuyers won’t want their own home inspection, too. Consult with a real estate professional to help determine if a pre-inspection may be helpful.

First time home sellers don’t have to be overwhelmed with the process. With the right preparation and the help of a professional real estate agent, home selling can move swiftly. 

 

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7 Excellent Ideas For Building An Eco-Friendly Home

Posted in Real Estate by Michigan Real Estate Expert on March 30th, 2018

7 excellent ideas for building and eco friendly homeIn recent years, building an environmentally friendly home or updating an existing home to be more energy efficient has become much more mainstream. While building an entirely green residence isn’t always fiscally possible, simple eco-friendly building techniques and upgrades will ultimately lower your water and electricity bills.

These green home improvements will save you money in the long run, while also saving the planet. The following are some of the easiest ways to lower your carbon footprint when building or updating a home. 

Build or Purchase a Smaller Home

Smaller homes naturally have a lower impact on the environment. There is less square footage to cool and heat, which keeps energy consumption down. However, this doesn’t mean that you need to give up your dream home. Instead, create an ideal floor plan with usable space, and downsize rooms you know you will not use on a daily — or even weekly — basis. 

Use Energy-Efficient Windows

When building a home or updating an existing home, use Energy Star-labeled windows. This important label means that the Environmental Protection Agency (EPA) has deemed them as energy efficient. The money saved on future heating and cooling bills often more than make up for the initial cost differential. 

Use Energy-Efficient Products

Like windows, certain appliances are also Energy Star-labeled. Energy Star appliances conserve energy, without sacrificing performance. Everything from a single light bulb to a geothermal heat pump can come with this important, government-approved label. 

Use Proper Insulation

Heating and cooling typically accounts for approximately half of a home’s energy consumption, and this energy usage is often wasted due to poor insulation. Start by making sure there are no drafts by windows and doors. This is one of the easiest things you can do to reduce your carbon footprint and the price of your monthly bills.

Install Solar Panels

Solar energy is both clean and renewable, and solar panels are the perfect way to harness this remarkable form of energy. While the initial cost of installation can seem high, the money saved in the long term is extraordinary. Plus, there are often tax breaks and other monetary incentives. When building a new home, consult with a knowledgeable architect about positioning the property and the solar panels for maximum sun exposure.

Use Sustainable Building Materials

Sustainable building materials can be utilized throughout the entire building process. When picking out wood for the frame of the home, use a supplier who practices an environmentally friendly planting and harvesting process. Once in the design phase, consider bamboo and/or cork flooring. They are both eco-friendly and trendy. 

Save Water

There are numerous ways to cut back on water usage. To start, install low-flow aerators on toilets and shower heads, invest in a tankless water heater and only use an Energy Star-rated washing machine. Next, capture rainwater on your property in a cistern or barrel. This water can be used for landscaping and irrigation.

Creating a green home doesn’t have to be complicated. Simple updates and a bit of forethought can drastically reduce monthly bills, while simultaneously reducing fossil-fuel emissions. 

 

 

 

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Five Reasons Why Spring Is The Perfect Time To Sell

Posted in Real Estate by Michigan Real Estate Expert on March 29th, 2018

5 Reasons Spring Is The Perfect Time to SellSpring is many people’s favorite season of the year. Obviously, there are many valid reasons why this is so;  but, one of the best things about spring is that it is an ideal time to sell your home.

If you have considered putting your home on the market any time in the next year or so, check out these five reasons which make spring the ideal time.

  • Buyers are searching – A huge majority of home buyers want to move during summer. Many families have school or work vacations that make the moving process a little easier during this time. If you put your home on the market during spring, you ready things for someone to purchase and move in during this prime time

  • The weather is cooperative – Yes, there may be a few spring rain showers here and there, but during the spring season (in most parts of the country,) you’ll find that the weather is neither too hot nor too cold to keep buyers from searching. In addition, the spring sunshine makes for beautiful listing photos.

  • It’s a great time for home improvement – Whether you want to make improvements to your house to make selling easier, or you plan to sell your home as a fixer-upper, the knowledge that spring and the coming summer months is the perfect time to attend to these tasks will benefit you during the listing and sales process.

  • Your yard will look great – They say that curb appeal is one of the most important things that is considered when someone purchases a home. When you sell in springtime, the grass is green, the flowers are in bloom and your yard will look it’s very best. You may find that it’s a little easier to sell during this time just because of the extra “wow factor” your yard brings to the table.

  • The market is prime – Listen to any news or finance program and you’ll hear that the real estate market is booming. Take advantage of this benefit and pair it with all the other reasons to sell your home this spring. You may find that selling your property quickly and at your asking price is much easier than you ever imagined it would be.

As you can see, spring really is an excellent time to sell a home. However, don’t wait until the peak of the season to think about putting it on the market and expect to reap all the benefits. Act now and be ready to make a splash when the weather warms up and the sun comes out to shine.

 

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Your Guide To Aging In Place Home Modifications

Posted in Real Estate by Michigan Real Estate Expert on March 27th, 2018

Your Guide To Aging in Place Home ModificationsIf you’ve had to watch your parents transition into assisted living, you may have no desire to call such a place home. You are not alone. According to the Aging in Place Housing Survey conducted by the American Association of Retired Persons (AARP), more than 90 percent of seniors want to remain in their home.

Many survey respondents said that they would rather use nursing home funds towards purchasing a home that is suited for aging in place or making accessible home modifications.  

You’ve probably heard the buzzwords — aging in place, non-assisted living, universal design — these phrases mean the same thing: growing older in your home. Today, home modifications can help you continue to live in your home as you age. Plus, aging-in-place home modifications are much less expensive than moving into a nursing home or assisted living facility.

The problem is that most existing homes are not conducive to aging in place. There are more than 100 million homes in the United States. However, only one percent of them are currently set up for accessibility. Fortunately, there are a variety of home modifications that you can do to make any home more accessible. Here is a handy guide to accessible home modifications.

Think About Your Future Needs

The first step in making sure your home is suited to aging in place is to consider how your needs might change in the future. Everyone’s situation is different.

If you have a chronic illness, such as diabetes or heart disease, it is best to talk with your doctor to determine how these health issues might make it hard for you to live on your own in the future. Consider what modifications you’ll need to make to ensure that your home will suit your future needs.

For example, if you are thinking of buying a new home with an upstairs, you might use the upper part of the house for your home office now and convert the area into a caregiver’s quarters in the future.

Consider a First-Floor Master Suite

An essential home modification for aging in place is first-floor living. Although you might not have mobility issues now, hip replacements and other problems that affect mobility are frequent with increasing age.

Plus, a first-floor suite can increase the value of your home should you sell in the future. According to data from Builder Online, out of the best-selling new home floor plans, more than 83 percent feature accessible master suites.

Choose Slip-Resistant Flooring

Falls are a serious threat to the independence and health of older adults. They are the leading cause of injuries among Americans ages 65 and older. That is why it is so important to take steps to reduce the likelihood of a fall.

One of the easiest modifications that you can make in this area is to choose slip-resistant flooring. Cork and bamboo flooring are both popular for aging in place as they are softer and thus more forgiving during a fall.

These are just a few of the aging in place modifications that you can make to your home. There are many others. The important thing to remember is that you don’t have to sacrifice lifestyle or luxury to have a home that is also accessible.

Many of the above modifications can be made anytime and can help enhance the beauty and comfort of your home.

 

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5 Tips For Prospective Buyers To Submit A Winning Offer

Posted in Real Estate by Michigan Real Estate Expert on March 23rd, 2018

5 Tips For Prospective Buyers To Submit A Winning OfferIn a hot real estate market, agents often tell buyers they must expect to make multiple offers before one is accepted. Disappointment may be the new normal rather than an exception. The stress of repeated rejections isn’t easy, so be prepared.

Significant numbers of first-time buyers find the process difficult, and recent research indicates that about 60 percent of Millennials choose to rent rather than own, delaying other important life decisions, including marriage and family. 

There are, however, at least 5 ways to strengthen your buyer profile and give yourself an advantage: 

Check Your Credit

Take advantage of the free credit checks offered by the three credit reporting agencies, and clean up any questionable entries. At the very least, be prepared to offer clear and cogent reasons for any late payments that appear within the last couple of years. Pay down credit card balances and student loan debt as much as possible, and assure that your employment record is stable. 

Sock Away Some Cash

Try to delay your home search until you have enough money for a reasonable down payment and required closing costs, plus a comfortable nest egg or contingency fund. Demonstrate a consistent savings habit. If you plan to borrow the down payment from parents or other family members, be certain it will be adequate and available when you need it.

Talk With Your Loan Officer

Get a definitive idea of how much you can comfortably afford. If you’re a veteran or qualify for other special loan programs, find out in advance. Gain a comfort level with a lender, and listen to the advice that is offered. Interest rates are currently still low, but any rate change will affect the amount you can borrow. Limit your home search homes priced lower than your loan limit.

The only thing better than a pre-qualification letter is approval confirmation for a specific loan amount. In a fast-paced real estate market, seek that pre-approval, so that you’ll be able to move quickly when you find the right property. A pre-approved loan, an offer with no contingencies, and a quick closing date are the marks of an “A-list” buyer.

Define Your Needs

Know your preferred neighborhoods, and prepare a list of “must have” items as well as a wish list to guide your search. But be realistic. Know that home-buying is a matter of priorities and a game of give and take.

Look at a home’s structure and condition; consider the location, and realize that there is no such thing as the perfect house. Know that tired style can be updated, and decor changes are relatively easy on the pocketbook.  

Make the First Offer Your Best Offer

In a seller’s market, it’s wise to make the initial offer your best offer. A lowball bid will not impress the seller, and you may never get a chance to submit a higher bid. When there is serious competition for homes, it pays to be serious about every offer. 

Finally, know that if you’re persistent and prepared, you will find a home to suit you. Practice patience!

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