I sometimes wonder what will the New Year bring? As a Realtor my income is never certain. Varying from month to month and sometimes dependent on the economy.
But one thing I know is that if you talk doom and gloom and do nothing, then you will get doom and gloom. Sure the economy is bad in Metro Detroit. But Metro Detroit Real estate is still selling. It is definitely selling slower and for less money, but people are still buying and still selling.
The trick is to get your piece of the pie. You have to shift focus, shift gears, work harder to make the same amount of money. You need to continue making the client happy, getting them what they want, when they want it, at that low price. It's harder. But it is easier that just talking doom and gloom and not getting it done.
I believe the same applies to all industries and jobs in Metro Detroit. You have to think differently, do things and jobs that you don't normally do to get the job done. We can roll over and quit. We may have to start over in a different field, or do two jobs. You can just complain how bad it is, or you can look at it and try to make money somehow.
Call your friends and tell them you need work. Work later or on the weekend. Take that lousy low paying job. The bottom line is that you and I need to survive through this economy. It can be done. People made it through the depression. We can do it now. By networking, cutting back, working smarter and harder we can make it a great year. A year that may be hard but a year that we enjoyed time with friends and family.
Remember that is why we work. To improve our quality of life. To enjoy it with family and friends. May next year be a safe, healthy, and prosperous year for you and your family.
Russ Ravary
For more real estate and mortage information for Southeastern Michigan go to www.russravary.com
Sunday, December 30, 2007
Thursday, December 27, 2007
Buying foreclosures
Buying REO or bank owned properties in Detroit I read an article on active rain yesterday from an agent that specialized in bank owned properties. His basic attitude was don't submit a low offer and don't put down why you put in a low offer because of the problems with the house. He stated he knew what was wrong with the house.
Unfortunately I think banks are disconnected with how bad some properties are and if that is not included in the offer then they (the bank) have no clue. As the agent said the banks are making a decision strictly on the numbers. It is OK some of the time to make the decision on the numbers. But in Detroit's market the banks are realizing they can't do that. If the bank owned property is in substandard shape then a buyer should be making a low ball offer.
I'm sure I am going to ruffle some feathers here. I know as a real estate agent some agents would rather get and work on an offer that is close to the list price. There is a small percentage of agents that would rather just buy or sell without getting the best possible deal for their client. That small percentage of agents want to just make the sale! Less negotiation, less trouble, quicker money in their pocket. But in the Detroit market the prices are continuing to fall. You are not acting in the best interest of your buyer if you are not putting in a 10 - 15% below list price, if your client is shopping for a deal. It doesn't matter what the comps are now. By summer the price is going to be lower because of the the bank owned properties. The banks have to move the inventory. So they have to lower the price. We do not have enough qualified buyers in Metro Detroit to support the market. But if your client has to have the house, and no other house will do then a low ball offer is not the best tactic. Put in a lower offer that will still clinch the deal and hopefully will be lower than the most recent sold comps.
I have seen sold deals where the bank listed price was $71,000 and sold for the low $40's. Another 2 were listed in the $40's and sold for $5,000. Some banks have sent out emails to the REO's that they were more willing to accept those offers because they had to move the inventory.
The bottom line in Wayne County Real Estate, Livingston County Real Estate, Oakland County Real estate, and Metro Detroit Real Estate is that low offers are being accepted. I agree not all the time and I agree that it would be easier to submit an offer closer to the list price to get the deal done. But as agents we are supposed to be acting in the best interest of our buyers. Sure I can't 100% for sure predict that home prices are going to continue to drop this year in the Metro Detroit market. But I would bet money on it, so if I think that I need to go against common practices and put those low ball offers in.
If you want to Search Michigan Homes for sale or want more information on Metro Detroit real estate go to my website www.russravary.com
Unfortunately I think banks are disconnected with how bad some properties are and if that is not included in the offer then they (the bank) have no clue. As the agent said the banks are making a decision strictly on the numbers. It is OK some of the time to make the decision on the numbers. But in Detroit's market the banks are realizing they can't do that. If the bank owned property is in substandard shape then a buyer should be making a low ball offer.
I'm sure I am going to ruffle some feathers here. I know as a real estate agent some agents would rather get and work on an offer that is close to the list price. There is a small percentage of agents that would rather just buy or sell without getting the best possible deal for their client. That small percentage of agents want to just make the sale! Less negotiation, less trouble, quicker money in their pocket. But in the Detroit market the prices are continuing to fall. You are not acting in the best interest of your buyer if you are not putting in a 10 - 15% below list price, if your client is shopping for a deal. It doesn't matter what the comps are now. By summer the price is going to be lower because of the the bank owned properties. The banks have to move the inventory. So they have to lower the price. We do not have enough qualified buyers in Metro Detroit to support the market. But if your client has to have the house, and no other house will do then a low ball offer is not the best tactic. Put in a lower offer that will still clinch the deal and hopefully will be lower than the most recent sold comps.
I have seen sold deals where the bank listed price was $71,000 and sold for the low $40's. Another 2 were listed in the $40's and sold for $5,000. Some banks have sent out emails to the REO's that they were more willing to accept those offers because they had to move the inventory.
The bottom line in Wayne County Real Estate, Livingston County Real Estate, Oakland County Real estate, and Metro Detroit Real Estate is that low offers are being accepted. I agree not all the time and I agree that it would be easier to submit an offer closer to the list price to get the deal done. But as agents we are supposed to be acting in the best interest of our buyers. Sure I can't 100% for sure predict that home prices are going to continue to drop this year in the Metro Detroit market. But I would bet money on it, so if I think that I need to go against common practices and put those low ball offers in.
If you want to Search Michigan Homes for sale or want more information on Metro Detroit real estate go to my website www.russravary.com
Tuesday, August 21, 2007
21 Potential resale problems
21 Potential Re-Sale Problems Buying a home is a 90% an emotional purchase. As a real estate agent over and over I see buyers buy a home on "liking it" versus the "best value". I have seen people buy a home 300 sq foot smaller home for the same price. The one they bought the one that had something that appealed to them. To them it was the right purchase. The best value no. You should tap into your emotional knowledge, and be aware of your responses on all levels when choosing a home. Homes are places where you and your family should feel comfortable, renewed, and protected. Your decision to purchase a home is a personal choice, taking in many factors. As a real estate agent I will advise you on what is a good value, what I think, and give your my market experience. But it is your home, your life, you decision. I'm not going to live there, you are. The choice is ultimately yours. I will show you the homes, give you the facts, and you make the decision on which home you want.
However, there will come a time when you want to re-sell the home. Years ago many areas were getting 3- 5% annual appreciation on the sales price. Now that has changed. It is more important to think about resale. Homes that have re-sale issues are going for a lot less money. Think about when you are going to sell the home in the future and consider any possible difficulties that you may encounter. The investment value of your home is directly related to its salability. If it is in demand by other buyers, your home will sell at the highest level possible for the market. What you think is a plus may be a negative to others. (ie. being right next door to the school was great for your kids, but may be a negative to an older couple with no kids)
The issues noted here are not necessarily deal killers. The home you would like to buy may have a few defects, yet meets your needs in many ways. No home will be perfect. However, your decision should be supported by careful evaluation.
Investors and home flippers look for homes with marketability problems. They are often priced below market, and are perfect for their remodeling solutions. You, too, can think creatively when considering a home. Some problems can be corrected or mitigated. You may be able to make the design decisions and do the work yourself. Or, you may need to hire design and building help. Solving marketing problems adds a greater level of risk to your home purchase, but possibly, a higher level of satisfaction and monetary reward. Remember, a home that appeals to the greatest number of buyers will sell quicker.
Here are 21 potential re-sale problems:
1. Unusual Easements or RestrictionsIf unusual easements or restrictions were not disclosed up front, you may not be aware of them until you see the survey and title work. If you discover these, I suggest that you take a step back, and consider whether you will accept an unusual easement or restriction on your use of the property. Some examples: neighbors may cross the property to get to common areas, pets are prohibited, or major utilities cross property .
2. Lack of Yard If a home has much less yard area than others in the neighborhood, buyers tend to eliminate this choice. A steep slope may make the grounds difficult to use and maintain. Yards that have been terraced or landscaped may be exceptions. Compare your property to the yards offered by competing homes.
3. Flag LotThese are lots with a long narrow strip, leading to the area where the house is placed. These homes will have almost no street frontage, and there may be another home in front of the home. The home may only have an easement to get to the home. A flag lot in a country setting with a long driveway leading to a large tract may be an exception to the rule. In a subdivision of homes with road frontage, buyers will avoid this type of lot.
4. High Tension Wires & cell towersThe general reaction by buyers to high tension wires crossing near the lot is to simply eliminate the choice. Not many people like buying homes looking out to towers. It reduces the number of buyers and your home will sit on the market longer.
5. Steep DrivewayIn Michigan people think about how they are going to get up and down them in the snow. People are worried about backing off the side or sliding down the hill.
6. Busy StreetThe noise related to a busy street is a turn-off to many buyers. This is more of a problem if the busy street is in front of the house and traffic is more visible.
7. Declining ValuesIf you perceive the neighborhood to be declining, this is a must to avoid. Choose areas that show pride in ownership. However, if you see tear downs and new construction, then the neighborhood may be going through a renewal period, and may be a good risk. 8. Safety or Security Problems If you sense that there are security problems - burglaries, drug trafficing, or safety problems for your children, take a step back and look at the facts and data on these issues before buying. These kind of problems will turn away buyers fast.
9. Extended Marketing TimeHas the home that you are considering been on the market a long time? In the market of 2007 this is normal. The price was probably set too high? Has the market been slow? The one you need to think about is the house on the market because of some of the items we are discussing here. If it is on the market a long time becuase of a bad room layout, or close to a busy road you most likely will have the same problem. Or, is there a problem with the house that you will need to correct or can correct?
10. Remote LocationIn most cities, areas that are closer to downtown tend to have a larger buyer pool than homes located in remote areas. However, you may choose to trade the privacy and setting of a country home with the resale potential. If gas continues to go up will the house out of the city have a great resale value. Or will traffic congestion make the commute to long?
11. No Comparable SalesThis indicates a possible re-sale problem. The home may be very unusual compared to homes around it, or the market may be slow. Understand the underlying reason for few or no comparable sales. You don't want to be the largest home in the neighborhood, or the only log home, or the only contempary home.12. Lacks a Typical AmenityIn an area where nearly all homes are on the golf course, or have a basement, or include a garage, buyers will tend to avoid homes that lack these features. In an area of mostly older buyers, a home with the main bedroom upstairs may have trouble selling. Look carefully at what is generally offered in a given area. Usually you want to buy a home with a basement.13. Unusual ArchitectureHomes that do not fit in to the neighborhood may have trouble selling. For example, the contemporary style home may not be a good fit in older wood frame areas. It would be hard to sell a uniform suburban neighborhood. In areas like downtown Northville many of the homes are Victorian style you would not want to put up a ranch in between two Victorians.
14. Non Functional Floor PlanFloor plans that make living in the home difficult will turn away buyers. Excessive stairs between rooms, rooms that are out of proportion, poor access to the backyard, low ceilings, few windows, and other layout issues will result in a re-sale problem. This may be an opportunity to take down walls, add windows and doors, and make creative changes to improve the functionality and value of a house. Design skill and a fairly high budget will be necessary. Some examples are: Having to get to one bedroom through another bedroom, having only one bathroom in the bedroom.15. Costly Improvements The cost of certain improvements may be hard to recoup. Some examples may be imported fixtures, unusual craftsmanship, exotic woods, European appliances, non-native plants, hand decorated walls, etc. If these finishes are similar to locally available materials, they may not have a market value equal to their cost. In general many improvements will not get you dollar for dollar what you put into it. (ie. swimming pools do not contribute the much of their cost in the value of the home. In fact it may be a negative to some people)
16. Out Dated FinishesMost homes have some outdated finishes - from needing freshening up, to a complete makeover. This is where design skill and perseverance can completely transform a house. If you are new to remodeling, consider your budget carefully. Often the work can get quite extensive and tends to grow as the project develops. (ie. formica counter tops in homes over $250,000 is out where corian, SSV, and granite are in)17. Inspection IssuesExcessive repairs noted on your inspection report indicate that the house was not maintained or was poorly constructed. Be prepared for some serious work on the house. All exterior claddings, including stucco, should be inspected carefully. An incorrect application may have water damage or mold behind it. A mold infestation may be expensive to remove. Be prepared to document your repairs in order to show a future buyer that the problems have been completely solved. These issues tend to have some stigma attached.
18. Insurance ClaimsIn some areas a home may have higher insurance bills because of previous claims from the prior home owner. In Michigan I don't believe it is a factor. However in flood prone areas, hurrican areas it is important to know the facts about a previous insurance claim. If it was due to a fire or flooding problem, you should have full disclosure. Large insurance claims are a red flag, and may result in difficulty in obtaining insurance on the home. Many homes have had repairs covered by insurance, such as hail damage, and these are not a re-sale problem.
19. Over ImprovedHomes that are over improved for the area, or have excess acreage, often have a difficult time recouping the additional cost. Most people feel safer buying one of the cheaper houses in the neighborhood.
20. Commercial ViewHomes in suburban areas that view office buildings or retail centers are less attractive to buyers. Buyers choose suburban neighborhoods for their concentration of single family homes, separated from commercial areas. This may not be a problem in more urban areas.
21. No privacyMost buyers in all neighborhoods want a certain degree of privacy in the back yard. If the building behind your home looks down on your backyard or into your family room, this will be a sales objection. This can be mitigated by trees or screening.
Here are another 2 pages of what adds value to your home and what subtracts value from your home.
To search Michigan homes for sale
For more real estate and mortgage information go to www.russravary.com
However, there will come a time when you want to re-sell the home. Years ago many areas were getting 3- 5% annual appreciation on the sales price. Now that has changed. It is more important to think about resale. Homes that have re-sale issues are going for a lot less money. Think about when you are going to sell the home in the future and consider any possible difficulties that you may encounter. The investment value of your home is directly related to its salability. If it is in demand by other buyers, your home will sell at the highest level possible for the market. What you think is a plus may be a negative to others. (ie. being right next door to the school was great for your kids, but may be a negative to an older couple with no kids)
The issues noted here are not necessarily deal killers. The home you would like to buy may have a few defects, yet meets your needs in many ways. No home will be perfect. However, your decision should be supported by careful evaluation.
Investors and home flippers look for homes with marketability problems. They are often priced below market, and are perfect for their remodeling solutions. You, too, can think creatively when considering a home. Some problems can be corrected or mitigated. You may be able to make the design decisions and do the work yourself. Or, you may need to hire design and building help. Solving marketing problems adds a greater level of risk to your home purchase, but possibly, a higher level of satisfaction and monetary reward. Remember, a home that appeals to the greatest number of buyers will sell quicker.
Here are 21 potential re-sale problems:
1. Unusual Easements or RestrictionsIf unusual easements or restrictions were not disclosed up front, you may not be aware of them until you see the survey and title work. If you discover these, I suggest that you take a step back, and consider whether you will accept an unusual easement or restriction on your use of the property. Some examples: neighbors may cross the property to get to common areas, pets are prohibited, or major utilities cross property .
2. Lack of Yard If a home has much less yard area than others in the neighborhood, buyers tend to eliminate this choice. A steep slope may make the grounds difficult to use and maintain. Yards that have been terraced or landscaped may be exceptions. Compare your property to the yards offered by competing homes.
3. Flag LotThese are lots with a long narrow strip, leading to the area where the house is placed. These homes will have almost no street frontage, and there may be another home in front of the home. The home may only have an easement to get to the home. A flag lot in a country setting with a long driveway leading to a large tract may be an exception to the rule. In a subdivision of homes with road frontage, buyers will avoid this type of lot.
4. High Tension Wires & cell towersThe general reaction by buyers to high tension wires crossing near the lot is to simply eliminate the choice. Not many people like buying homes looking out to towers. It reduces the number of buyers and your home will sit on the market longer.
5. Steep DrivewayIn Michigan people think about how they are going to get up and down them in the snow. People are worried about backing off the side or sliding down the hill.
6. Busy StreetThe noise related to a busy street is a turn-off to many buyers. This is more of a problem if the busy street is in front of the house and traffic is more visible.
7. Declining ValuesIf you perceive the neighborhood to be declining, this is a must to avoid. Choose areas that show pride in ownership. However, if you see tear downs and new construction, then the neighborhood may be going through a renewal period, and may be a good risk. 8. Safety or Security Problems If you sense that there are security problems - burglaries, drug trafficing, or safety problems for your children, take a step back and look at the facts and data on these issues before buying. These kind of problems will turn away buyers fast.
9. Extended Marketing TimeHas the home that you are considering been on the market a long time? In the market of 2007 this is normal. The price was probably set too high? Has the market been slow? The one you need to think about is the house on the market because of some of the items we are discussing here. If it is on the market a long time becuase of a bad room layout, or close to a busy road you most likely will have the same problem. Or, is there a problem with the house that you will need to correct or can correct?
10. Remote LocationIn most cities, areas that are closer to downtown tend to have a larger buyer pool than homes located in remote areas. However, you may choose to trade the privacy and setting of a country home with the resale potential. If gas continues to go up will the house out of the city have a great resale value. Or will traffic congestion make the commute to long?
11. No Comparable SalesThis indicates a possible re-sale problem. The home may be very unusual compared to homes around it, or the market may be slow. Understand the underlying reason for few or no comparable sales. You don't want to be the largest home in the neighborhood, or the only log home, or the only contempary home.12. Lacks a Typical AmenityIn an area where nearly all homes are on the golf course, or have a basement, or include a garage, buyers will tend to avoid homes that lack these features. In an area of mostly older buyers, a home with the main bedroom upstairs may have trouble selling. Look carefully at what is generally offered in a given area. Usually you want to buy a home with a basement.13. Unusual ArchitectureHomes that do not fit in to the neighborhood may have trouble selling. For example, the contemporary style home may not be a good fit in older wood frame areas. It would be hard to sell a uniform suburban neighborhood. In areas like downtown Northville many of the homes are Victorian style you would not want to put up a ranch in between two Victorians.
14. Non Functional Floor PlanFloor plans that make living in the home difficult will turn away buyers. Excessive stairs between rooms, rooms that are out of proportion, poor access to the backyard, low ceilings, few windows, and other layout issues will result in a re-sale problem. This may be an opportunity to take down walls, add windows and doors, and make creative changes to improve the functionality and value of a house. Design skill and a fairly high budget will be necessary. Some examples are: Having to get to one bedroom through another bedroom, having only one bathroom in the bedroom.15. Costly Improvements The cost of certain improvements may be hard to recoup. Some examples may be imported fixtures, unusual craftsmanship, exotic woods, European appliances, non-native plants, hand decorated walls, etc. If these finishes are similar to locally available materials, they may not have a market value equal to their cost. In general many improvements will not get you dollar for dollar what you put into it. (ie. swimming pools do not contribute the much of their cost in the value of the home. In fact it may be a negative to some people)
16. Out Dated FinishesMost homes have some outdated finishes - from needing freshening up, to a complete makeover. This is where design skill and perseverance can completely transform a house. If you are new to remodeling, consider your budget carefully. Often the work can get quite extensive and tends to grow as the project develops. (ie. formica counter tops in homes over $250,000 is out where corian, SSV, and granite are in)17. Inspection IssuesExcessive repairs noted on your inspection report indicate that the house was not maintained or was poorly constructed. Be prepared for some serious work on the house. All exterior claddings, including stucco, should be inspected carefully. An incorrect application may have water damage or mold behind it. A mold infestation may be expensive to remove. Be prepared to document your repairs in order to show a future buyer that the problems have been completely solved. These issues tend to have some stigma attached.
18. Insurance ClaimsIn some areas a home may have higher insurance bills because of previous claims from the prior home owner. In Michigan I don't believe it is a factor. However in flood prone areas, hurrican areas it is important to know the facts about a previous insurance claim. If it was due to a fire or flooding problem, you should have full disclosure. Large insurance claims are a red flag, and may result in difficulty in obtaining insurance on the home. Many homes have had repairs covered by insurance, such as hail damage, and these are not a re-sale problem.
19. Over ImprovedHomes that are over improved for the area, or have excess acreage, often have a difficult time recouping the additional cost. Most people feel safer buying one of the cheaper houses in the neighborhood.
20. Commercial ViewHomes in suburban areas that view office buildings or retail centers are less attractive to buyers. Buyers choose suburban neighborhoods for their concentration of single family homes, separated from commercial areas. This may not be a problem in more urban areas.
21. No privacyMost buyers in all neighborhoods want a certain degree of privacy in the back yard. If the building behind your home looks down on your backyard or into your family room, this will be a sales objection. This can be mitigated by trees or screening.
Here are another 2 pages of what adds value to your home and what subtracts value from your home.
To search Michigan homes for sale
For more real estate and mortgage information go to www.russravary.com
Monday, July 30, 2007
Michigan real estate market update 2007
Michigan Real Estate Market Update, August 2007
So you want to know how long this bad real estate market is going to last in Michigan? I or anybody else can't accurately predicate that.
Here is what I know at this moment.
1.) Home prices are down anywhere from 20 to 30% off their highs of several years ago. I personally have helped clients buy homes that were less than 7 years old for 10% less than the original owner paid the builder. That is not even including what the original owner put into the landscaping, decks, window treatments and any upgrades after they moved in. My clients and I even bought one where the original owners finished the basement. The original owners have lost a lot of equity in the last few years not even including the real estate commissions they have to pay.
2.) It is not going to change within the next year because of these reasons.
a. Michigan has lost people to other states because of the automotive buyouts, Phizer, layoffs, and re-locations. That means less people to buy the same amount of homes.
b. There are more foreclosures on the horizon as there are thousands of adjustable rate mortgages that are going to adjust upward in the next year. How is somebody that has a $350,00 4.75% mortgage going to be able to afford their rate going up to 6.75%? They can for a while. But some people were banking on selling at a profit in 5 years. They can't sell the house for what they have in it right now. They may be able to survive with the large mortgage payment for a while, but at some point they will have to sell or lose the house. (if they can't afford the payment)
c. Banks have tightened up credit guidelines because of the foreclosure rates. What that means to the real estate market is that they have taken approximately 20% of the buyers (that could buy last year) out of the market. No more easy credit. That means less buyers for all these homes.
d. Because of the upcoming foreclosures prices will continue to drop as banks unload those homes. Are they always a bargain? See my how to buy bank foreclosures or are bank foreclosures a bargain? Or my article on how to buy a bargain
So the bottom line is why do you want to sell? Do you have to sell right now? Are you going to wait for the prices to come back? Can you wait for 5 to 10 years? That's how long it may take to get back to those high levels. If houses have lost 20% of their value from the high point and we only gain a 5% increase per year. That means a minimum of 4 years for it to return if we have a turnaround this year and we have 4 years of solid increases Do you think that is possible in the Michigan economy?
If you have more questions and would like to explore your options of buying or selling give me a call on my cell at (313) 310-9855 Selling tips or buying tips
Or go to my website www.russravary.com or search Michigan homes
So you want to know how long this bad real estate market is going to last in Michigan? I or anybody else can't accurately predicate that.
Here is what I know at this moment.
1.) Home prices are down anywhere from 20 to 30% off their highs of several years ago. I personally have helped clients buy homes that were less than 7 years old for 10% less than the original owner paid the builder. That is not even including what the original owner put into the landscaping, decks, window treatments and any upgrades after they moved in. My clients and I even bought one where the original owners finished the basement. The original owners have lost a lot of equity in the last few years not even including the real estate commissions they have to pay.
2.) It is not going to change within the next year because of these reasons.
a. Michigan has lost people to other states because of the automotive buyouts, Phizer, layoffs, and re-locations. That means less people to buy the same amount of homes.
b. There are more foreclosures on the horizon as there are thousands of adjustable rate mortgages that are going to adjust upward in the next year. How is somebody that has a $350,00 4.75% mortgage going to be able to afford their rate going up to 6.75%? They can for a while. But some people were banking on selling at a profit in 5 years. They can't sell the house for what they have in it right now. They may be able to survive with the large mortgage payment for a while, but at some point they will have to sell or lose the house. (if they can't afford the payment)
c. Banks have tightened up credit guidelines because of the foreclosure rates. What that means to the real estate market is that they have taken approximately 20% of the buyers (that could buy last year) out of the market. No more easy credit. That means less buyers for all these homes.
d. Because of the upcoming foreclosures prices will continue to drop as banks unload those homes. Are they always a bargain? See my how to buy bank foreclosures or are bank foreclosures a bargain? Or my article on how to buy a bargain
So the bottom line is why do you want to sell? Do you have to sell right now? Are you going to wait for the prices to come back? Can you wait for 5 to 10 years? That's how long it may take to get back to those high levels. If houses have lost 20% of their value from the high point and we only gain a 5% increase per year. That means a minimum of 4 years for it to return if we have a turnaround this year and we have 4 years of solid increases Do you think that is possible in the Michigan economy?
If you have more questions and would like to explore your options of buying or selling give me a call on my cell at (313) 310-9855 Selling tips or buying tips
Or go to my website www.russravary.com or search Michigan homes
Sunday, July 22, 2007
Common Home Buying Mistakes
1. FAILURE TO GET PRE-APPROVED IN WRITING FOR A HOME MORTGAGE.
Most home buyers need to obtain a home loan to purchase their house or condo. Smart buyers shop for a mortgage before searching for a home. They know if they have issues with their credit before they start to look. They have time to correct the mistakes on the credit report. They have time to reduce their debt. They have time to get their paperwork and finances in order.
Although it's fun to "shop" for a house or condo on the Internet -- where more than 90% percent of today's home buyers begin looking. The smartest home buyers get pre-approved in writing by an actual lender so they know the maximum mortgage amount available. They sit down with a local lender or call a local lender.
Be sure the lender gives you a pre-approval letter. Bring in all the documents required so there are no mistakes. You may be surprised but some deals fall apart because there is miscommunication between the mortgage person and the buyer. The mortgage person may not know all the facts. Not that the buyer lied to them, but the buyer didn't know it was an important detail. Like they were laid off for three months, or they paid rent in cash to their uncle, or they make $42,000 but the W-2's only show $32,000 because they took a lot of time off.
2. GET YOUR OWN BUYER'S AGENT.
The second major mistake some home buyers make is they forget they need their own buyer's agent. It's very easy for prospective buyers visiting weekend open houses to let the listing agent they meet prepare the purchase offer.
Whether that listing agent acts as a "dual agent" representing both the home seller and buyer (an inherent conflict of interest) or the listing agent represents only the seller (and nobody represents the buyer), such a situation is not in the home buyer's best interest.
To find a reputable buyer's agent, home buyers should ask friends, relatives and business associates for recommendations of local agents.
It costs home buyers nothing extra to have their own buyer's agent. If the home is listed for sale, the listing agent will split the sales commission with the buyer's agent. In the rare situation of a "for sale by owner" home, most FSBO (fizz-bo) sellers are only too happy to pay the buyer's agent half of a customary sales commission, usually 2-3 percent to get the home sold.
3. Refusing to Confide in a Trusted Advisor (your agent)
Buyers withhold information for a variety of reasons such as:
Fear of how they will be perceived
Irrational belief they have all the answers
Don't feel it is important enough
Lack confidence in their advisor
Experienced real estate agents like myself (Russ Ravary) handle such a multitude of transactions and personality mixes, there's little they haven't heard before. Your advisers are representing your best interests and have a fiduciary responsibility to do so. They can't help you if they don't know what you are doing behind their backs. Plus, they will likely have a better idea for you than you can think up. Be open, be honest. By letting them know your feelings will help them find you a home that you want at a price that you want.
If you have cold feet and have thoughts about backing out of the transaction, talk to your agent about those feelings. She can help walk you through the anxieties. Pros will help you to determine if you really need to cancel and, if so, try to get your earnest money back.
4. Not Understanding The Common Negotiating Methods Used At Offer Time
Some buyers have been told that the best way to get a good price is to low-ball the seller from the start in hopes that the seller will drop their price down fast in their counter offer. In reality this often does nothing more than upset the seller and will probably end up ruining the chance at an acceptable offer to both of the parties involved. Have good communication with your agent, and they will be able to inform you on the many proper ways to negotiate a deal and still get you the lowest price. A low ball offer is only good if it is a buyers market and you don't absolutely have to have "that home". A low ball offer does upset some sellers and they may refuse to negotiate at all. So be careful when you put one in if you really want the house.
5. Changing your Finances Prior to Closing
I have had people who bought new cars, or bought furniture, or quit their job before the closing. More debt meant debt ratios were out of wack, meant they were no longer qualified to buy a home.
Today's home buyers make the same mistake. Do not buy anything on credit and / or with a credit card once you have completed a loan application. Do NOT buy:
Automobiles
Washers, dryers, refrigerators
Lawnmowers or garden equipment
Expensive electronics or computers
Furniture for your new home
Slight alterations in your credit ratios could cause an underwriter to throw out your loan and deny it. If your loan contingency has expired or been removed, you could forfeit your earnest money deposit in addition to losing the home.
6. Failing To Know Research The Market Before Making Your Offer or FAILING TO INSIST ON A COMPARATIVE MARKET ANALYSIS (CMA) BEFORE MAKING A PURCHASE OFFER. Amazingly, many home buyers still follow the old rule: "Offer 5 percent below the asking price." That makes no sense.
Instead, smart home buyers ask their buyer's agent to prepare a written comparative market analysis (CMA) before making a purchase offer. This CMA is the same form the listing agent prepared for the home seller.
It shows recent sold prices of comparable nearby homes. Just because other homes are asking similar prices doesn't mean you are getting a good deal. It is what has sold recently that is the true measure of what a home is worth. That is how appraisals are done. Not by houses that are listed.
With the help of the buyer's agent, smart buyers then discuss the pros and cons of the homes on the CMA before arriving at a reasonable purchase offer price.Have your agent prepare all the area sales and comparables in your area and get a copy to look over before you make your offer. This will help ensure that you do not overpay what the home is really worth. In most cases, this is the same type of information that the seller saw when setting the price of their home ( and most likely ignored). Failing To Use Certified Home Inspection Company Buying your home often times the most important investment and financial transaction that you will ever make. A home inspection can save you hundreds or even thousands of dollars and unexpected problems down the road. In addition to the inspection, it is often a good idea to request some type of Home Warranty to cover the unexpected problems that may arise after you buy the house.
7. BUY A HOME WITH AN UNCHANGEABLE ISSUE.
A issue that will affect the future sale of the home and the price. In the current buyer's market in most communities, where there are more home sellers than qualified buyers, house and condo buyers can afford to take their time and be "picky." You need to be picky about the home you buy.
No home is perfect. Even brand-new houses and condos have their defects. Thankfully, most homes don't have major defects, such as being located next to a noisy railroad track or a freeway. Smart buyers think into the future and ask, "Will I have any trouble selling this home because of its problems?"
Serious defects are called "economic obsolescence" by appraisers. Examples include a bad floor plan, poor location (such as backing to a main street), outside factors ( such as cell phone towers, freeways, city dumps, commercial properties, high-voltage power lines), noisy street traffic, or lack of on site parking. Serious consideration should be given to these homes. There has to be a good price reduction in order to make it a good value.
8. Buying the Wrong House
The very first thing home buyers should do is make a list of priorities and define your home purchase wants and desires. Figure out what features and benefits are most important and which you can live without. Before you close escrow, review this list. It's easy to overlook a major factor that could come back to haunt you later. If you need four bedrooms for your three kids don't buy a three bedroom and try to "get by"
Know what you can afford for a house payment. Going house poor is going to have you end up in foreclosure. Buy within your means. Don't let your emotions cloud your judgement.
9.. NEGLECTING TO RE- Read and examine the Purchase agreement, it's clauses, conditions, and contingencies..
Today's smart home buyers include at least two purchase-offer contingencies: (a) a satisfactory lender's professional appraisal of the home for at least the purchase price, and (b) the buyer's approval of a professional inspection report to be obtained at the buyer's expense.
Depending on local custom, additional inspection contingencies might include termite or pest control, building-code compliance, energy efficiency, and radon.
A controversial contingency makes the home purchase contingent on the buyer's sale of his/her current residence. Many home sellers refuse to accept such a contingency. Others will accept it but with a 48-hour release clause if a better purchase offer from another buyer materializes
10.. Falling in love
If you think a house is ideal, don't let the seller or any of the seller's agents know. If the seller finds out you're in love with the house, the seller could hold out for a higher price.
A wise home buyer knows there's lots of houses -- and there's one out there that's the right house at the right price. If you can't afford it, move on and keep looking.
11. Overlooking an inferior floor plan for an attractive exterior.
It may have gorgeous curb appeal, but you don't live on the lawn. No matter how attractive the exterior, you need a livable home
12. Overlooking how the house will function for your family.
How do you really live? Do you really need a formal dining room and living room? Would you be happier with an eat-in kitchen and a great room and a den to use as a home office? The house only needs to fit one family -- yours.
13. Not getting what you want because you're impatient.
This is a big decision. You need time. Impatient decisions can lead to mistakes. Take your time, think about your decision. Re look at your favorite houses. Re look at the one you love. You would be surprised at how many times people get frustrated with the buying process and just buy any house because they are tired of looking. Take your time.
For more buyer and sellers tips go to my website www.russravary.com and you can also search for Michigan homes for sale with out leaving your name, email, or phone number
Most home buyers need to obtain a home loan to purchase their house or condo. Smart buyers shop for a mortgage before searching for a home. They know if they have issues with their credit before they start to look. They have time to correct the mistakes on the credit report. They have time to reduce their debt. They have time to get their paperwork and finances in order.
Although it's fun to "shop" for a house or condo on the Internet -- where more than 90% percent of today's home buyers begin looking. The smartest home buyers get pre-approved in writing by an actual lender so they know the maximum mortgage amount available. They sit down with a local lender or call a local lender.
Be sure the lender gives you a pre-approval letter. Bring in all the documents required so there are no mistakes. You may be surprised but some deals fall apart because there is miscommunication between the mortgage person and the buyer. The mortgage person may not know all the facts. Not that the buyer lied to them, but the buyer didn't know it was an important detail. Like they were laid off for three months, or they paid rent in cash to their uncle, or they make $42,000 but the W-2's only show $32,000 because they took a lot of time off.
2. GET YOUR OWN BUYER'S AGENT.
The second major mistake some home buyers make is they forget they need their own buyer's agent. It's very easy for prospective buyers visiting weekend open houses to let the listing agent they meet prepare the purchase offer.
Whether that listing agent acts as a "dual agent" representing both the home seller and buyer (an inherent conflict of interest) or the listing agent represents only the seller (and nobody represents the buyer), such a situation is not in the home buyer's best interest.
To find a reputable buyer's agent, home buyers should ask friends, relatives and business associates for recommendations of local agents.
It costs home buyers nothing extra to have their own buyer's agent. If the home is listed for sale, the listing agent will split the sales commission with the buyer's agent. In the rare situation of a "for sale by owner" home, most FSBO (fizz-bo) sellers are only too happy to pay the buyer's agent half of a customary sales commission, usually 2-3 percent to get the home sold.
3. Refusing to Confide in a Trusted Advisor (your agent)
Buyers withhold information for a variety of reasons such as:
Fear of how they will be perceived
Irrational belief they have all the answers
Don't feel it is important enough
Lack confidence in their advisor
Experienced real estate agents like myself (Russ Ravary) handle such a multitude of transactions and personality mixes, there's little they haven't heard before. Your advisers are representing your best interests and have a fiduciary responsibility to do so. They can't help you if they don't know what you are doing behind their backs. Plus, they will likely have a better idea for you than you can think up. Be open, be honest. By letting them know your feelings will help them find you a home that you want at a price that you want.
If you have cold feet and have thoughts about backing out of the transaction, talk to your agent about those feelings. She can help walk you through the anxieties. Pros will help you to determine if you really need to cancel and, if so, try to get your earnest money back.
4. Not Understanding The Common Negotiating Methods Used At Offer Time
Some buyers have been told that the best way to get a good price is to low-ball the seller from the start in hopes that the seller will drop their price down fast in their counter offer. In reality this often does nothing more than upset the seller and will probably end up ruining the chance at an acceptable offer to both of the parties involved. Have good communication with your agent, and they will be able to inform you on the many proper ways to negotiate a deal and still get you the lowest price. A low ball offer is only good if it is a buyers market and you don't absolutely have to have "that home". A low ball offer does upset some sellers and they may refuse to negotiate at all. So be careful when you put one in if you really want the house.
5. Changing your Finances Prior to Closing
I have had people who bought new cars, or bought furniture, or quit their job before the closing. More debt meant debt ratios were out of wack, meant they were no longer qualified to buy a home.
Today's home buyers make the same mistake. Do not buy anything on credit and / or with a credit card once you have completed a loan application. Do NOT buy:
Automobiles
Washers, dryers, refrigerators
Lawnmowers or garden equipment
Expensive electronics or computers
Furniture for your new home
Slight alterations in your credit ratios could cause an underwriter to throw out your loan and deny it. If your loan contingency has expired or been removed, you could forfeit your earnest money deposit in addition to losing the home.
6. Failing To Know Research The Market Before Making Your Offer or FAILING TO INSIST ON A COMPARATIVE MARKET ANALYSIS (CMA) BEFORE MAKING A PURCHASE OFFER. Amazingly, many home buyers still follow the old rule: "Offer 5 percent below the asking price." That makes no sense.
Instead, smart home buyers ask their buyer's agent to prepare a written comparative market analysis (CMA) before making a purchase offer. This CMA is the same form the listing agent prepared for the home seller.
It shows recent sold prices of comparable nearby homes. Just because other homes are asking similar prices doesn't mean you are getting a good deal. It is what has sold recently that is the true measure of what a home is worth. That is how appraisals are done. Not by houses that are listed.
With the help of the buyer's agent, smart buyers then discuss the pros and cons of the homes on the CMA before arriving at a reasonable purchase offer price.Have your agent prepare all the area sales and comparables in your area and get a copy to look over before you make your offer. This will help ensure that you do not overpay what the home is really worth. In most cases, this is the same type of information that the seller saw when setting the price of their home ( and most likely ignored). Failing To Use Certified Home Inspection Company Buying your home often times the most important investment and financial transaction that you will ever make. A home inspection can save you hundreds or even thousands of dollars and unexpected problems down the road. In addition to the inspection, it is often a good idea to request some type of Home Warranty to cover the unexpected problems that may arise after you buy the house.
7. BUY A HOME WITH AN UNCHANGEABLE ISSUE.
A issue that will affect the future sale of the home and the price. In the current buyer's market in most communities, where there are more home sellers than qualified buyers, house and condo buyers can afford to take their time and be "picky." You need to be picky about the home you buy.
No home is perfect. Even brand-new houses and condos have their defects. Thankfully, most homes don't have major defects, such as being located next to a noisy railroad track or a freeway. Smart buyers think into the future and ask, "Will I have any trouble selling this home because of its problems?"
Serious defects are called "economic obsolescence" by appraisers. Examples include a bad floor plan, poor location (such as backing to a main street), outside factors ( such as cell phone towers, freeways, city dumps, commercial properties, high-voltage power lines), noisy street traffic, or lack of on site parking. Serious consideration should be given to these homes. There has to be a good price reduction in order to make it a good value.
8. Buying the Wrong House
The very first thing home buyers should do is make a list of priorities and define your home purchase wants and desires. Figure out what features and benefits are most important and which you can live without. Before you close escrow, review this list. It's easy to overlook a major factor that could come back to haunt you later. If you need four bedrooms for your three kids don't buy a three bedroom and try to "get by"
Know what you can afford for a house payment. Going house poor is going to have you end up in foreclosure. Buy within your means. Don't let your emotions cloud your judgement.
9.. NEGLECTING TO RE- Read and examine the Purchase agreement, it's clauses, conditions, and contingencies..
Today's smart home buyers include at least two purchase-offer contingencies: (a) a satisfactory lender's professional appraisal of the home for at least the purchase price, and (b) the buyer's approval of a professional inspection report to be obtained at the buyer's expense.
Depending on local custom, additional inspection contingencies might include termite or pest control, building-code compliance, energy efficiency, and radon.
A controversial contingency makes the home purchase contingent on the buyer's sale of his/her current residence. Many home sellers refuse to accept such a contingency. Others will accept it but with a 48-hour release clause if a better purchase offer from another buyer materializes
10.. Falling in love
If you think a house is ideal, don't let the seller or any of the seller's agents know. If the seller finds out you're in love with the house, the seller could hold out for a higher price.
A wise home buyer knows there's lots of houses -- and there's one out there that's the right house at the right price. If you can't afford it, move on and keep looking.
11. Overlooking an inferior floor plan for an attractive exterior.
It may have gorgeous curb appeal, but you don't live on the lawn. No matter how attractive the exterior, you need a livable home
12. Overlooking how the house will function for your family.
How do you really live? Do you really need a formal dining room and living room? Would you be happier with an eat-in kitchen and a great room and a den to use as a home office? The house only needs to fit one family -- yours.
13. Not getting what you want because you're impatient.
This is a big decision. You need time. Impatient decisions can lead to mistakes. Take your time, think about your decision. Re look at your favorite houses. Re look at the one you love. You would be surprised at how many times people get frustrated with the buying process and just buy any house because they are tired of looking. Take your time.
For more buyer and sellers tips go to my website www.russravary.com and you can also search for Michigan homes for sale with out leaving your name, email, or phone number
Buying floreclosures
Everybody watches late night TV and sees the infomercials on how people made millions buying bank foreclosures. Can you do it? It is possible but banks have closed many of the loopholes in the lending process.
Let me explain what happens in the foreclosure process in Michigan. A homeowner falls 3 or more payments behind on the mortgage. The bank then sends them a letter that they are going to start foreclosure proceedings against the homeowner. Sometimes the banks are very quick to get a letter out and start the foreclosure proceedings. Other times some banks take months to get the foreclosure process started.
If the home owners make no attempt to correct the situation and pay up, then it is usually turned over to a foreclosure attorney to handle. During this time the bank usually requires the full amount of arreage to be paid. They won't accept just one payment. They want the full amount. If they owners don't pay the full amount or reach an agreement with the bank. (Remember the bank does not have to agree to take partial payment) The house is then scheduled to be sold at * sheriff sale*. The home is auctioned off. Unfortunately many people think you can steal the homes at the sale. There are deals there at the sale but you have to do the research on the homes and their value. But what usually happens is the bank will buy the home back. The reason they do this is because they have a mortgage on it. Let's say the house is worth $120,000 and the homeowners owe $100,000 on a mortgage. The bank will buy it back up to the $100,000 to recover their costs and to get the other possible liens off the home. You could buy it for $101,000 or more and the bank would probably let you buy it.
If the mortgage was $90,000 then the bank would bid up to $90,000 to keep their interest in the property. So up to this point the only way you can get a deal on the property is to out bid other buyers on a home. (and the mortgage on the property was not close to the value of the home.)
Now the bank owns the home. The original owners may still be living in the home. They have up to 6 months to pay the bank the full amount to keep the home. This seldom happens. The poeple can actually still live in the house and not pay anything and the bank can't kick them out until the six months is up. So sometimes these people live in the house for up to a year or year and a half and not pay a dime!
The bank usually waits for the six month redemption period to lapse. They then contact 3 different real estate agents. The bank will ask the three realtors to give them a price that the house should sell for. The bank is asking the realtor for a price, that price usually is fair market value in the eyes of the realtor. So that foreclosed home is no deal. It is around fair market value. The bank then hires a realtor to change locks, winterize the home, clean carpets, and if necessary get the home in saleable condition.
So the bottom line is that the bank is trying to recover what they are owed on the house or get fair market value. So most homes that are foreclosed are not great deals. Though there are some fixer uppers that may be deals. Ask your real estate agents to look for them. There also are HUD foreclosures that go through a little different process. There may be deals in them. I will be talking about them in another section.
The key to buying homes cheaply is to know values of the neighborhood and city and look for fixer uppers or homes below market value. Or buy Michigan homes that the people have relocated and have to sell. Or a divorce situation where they want to dump the home.
To get more buyers tips and sellers tips go to my website www.russravary.com or search Michigan homes for sale
Let me explain what happens in the foreclosure process in Michigan. A homeowner falls 3 or more payments behind on the mortgage. The bank then sends them a letter that they are going to start foreclosure proceedings against the homeowner. Sometimes the banks are very quick to get a letter out and start the foreclosure proceedings. Other times some banks take months to get the foreclosure process started.
If the home owners make no attempt to correct the situation and pay up, then it is usually turned over to a foreclosure attorney to handle. During this time the bank usually requires the full amount of arreage to be paid. They won't accept just one payment. They want the full amount. If they owners don't pay the full amount or reach an agreement with the bank. (Remember the bank does not have to agree to take partial payment) The house is then scheduled to be sold at * sheriff sale*. The home is auctioned off. Unfortunately many people think you can steal the homes at the sale. There are deals there at the sale but you have to do the research on the homes and their value. But what usually happens is the bank will buy the home back. The reason they do this is because they have a mortgage on it. Let's say the house is worth $120,000 and the homeowners owe $100,000 on a mortgage. The bank will buy it back up to the $100,000 to recover their costs and to get the other possible liens off the home. You could buy it for $101,000 or more and the bank would probably let you buy it.
If the mortgage was $90,000 then the bank would bid up to $90,000 to keep their interest in the property. So up to this point the only way you can get a deal on the property is to out bid other buyers on a home. (and the mortgage on the property was not close to the value of the home.)
Now the bank owns the home. The original owners may still be living in the home. They have up to 6 months to pay the bank the full amount to keep the home. This seldom happens. The poeple can actually still live in the house and not pay anything and the bank can't kick them out until the six months is up. So sometimes these people live in the house for up to a year or year and a half and not pay a dime!
The bank usually waits for the six month redemption period to lapse. They then contact 3 different real estate agents. The bank will ask the three realtors to give them a price that the house should sell for. The bank is asking the realtor for a price, that price usually is fair market value in the eyes of the realtor. So that foreclosed home is no deal. It is around fair market value. The bank then hires a realtor to change locks, winterize the home, clean carpets, and if necessary get the home in saleable condition.
So the bottom line is that the bank is trying to recover what they are owed on the house or get fair market value. So most homes that are foreclosed are not great deals. Though there are some fixer uppers that may be deals. Ask your real estate agents to look for them. There also are HUD foreclosures that go through a little different process. There may be deals in them. I will be talking about them in another section.
The key to buying homes cheaply is to know values of the neighborhood and city and look for fixer uppers or homes below market value. Or buy Michigan homes that the people have relocated and have to sell. Or a divorce situation where they want to dump the home.
To get more buyers tips and sellers tips go to my website www.russravary.com or search Michigan homes for sale
Thursday, July 19, 2007
Gosh darn why isn't my home selling?
It is a tough time to sell a home in Michigan, but homes are being sold. It is going to take time to sell your home no matter how nice your home is.
Turning 'For Sale' into 'Sold'
Getting Your Home Ready To Sell Requires A Little Money And A Lot Of Work!
Depersonalize your house
Get rid of family pictures on walls, dressers, and refrigerator.
Odors will kill a sale. Pet odors, smoking odors, old person odor, mildew odors.
Find the source and clean it. Then buy one of the many products to eliminate the smell and make your house smell better. I always remember I was showing a home to a couple with a 5 year child. We walked into a home and the child blurted out "what is that smell". Make sure litter boxes are clean and dog hair is up if you have a pet.
Clean everything! Bathrooms and kitchen, all rooms and closets from ceilings to floors and carpets!!
Caulk all areas that need it (around sinks, bathtubs, shower stalls, windows, doors, etc)
Grease or oil all squeaky doors and gates.Repaint all areas, especially halls, kitchen and family room if possible.
Neutral paint is one of the biggest selling features! If you have wallpaper consider removing it and repainting. I went into one kitchen that had vegetable wallpaper. I'm sure the homeowner loved it but it killed the deal. And my buyer liked the house up to that point.
If you have worn or stained carpeting consider replacing it with a neutral carpeting.
Clean the windows and doors (inside and outside) Make them shine. Make sure they open, close, and lock with ease.
Get rid of extra chairs, cabinets, or anything that takes up floor space in the kitchen. Every lady likes a spacious kitchen. Get rid of the dog bowls, the potato bin, the desk.
Wipe down all light fixtures including outdoor ones.
Edge your flowerbeds and add fresh mulch. Keep the lawn mowed and edged. Trim the shrubs. Get rid of any overgrown bushes or trees that hide the house. Reseed any bald spots in the yard.
If you have a pool make sure the water is sparkling clear.
Plant flowers in bloom or add baskets and planters. Remove anything that has been laying around the yard, or garage ( that you have been saving ie old wood, that old barbecue).
Make sure your front door is stained, varnished, or painted.
Your front door is the first impression. Add a welcoming wreath to your front door. Repair any leaking water pipes or faucets. If there are water stains clean them up after repairing the leak.Replace stained, bowed, or missing ceiling tiles.
Polish all brass fixtures.
Replace your furnace filters and leave a few extra ones out to show you're good at regular maintenance.
Unclutter all cabinets and closets by packing away things you are not currently using. you want the appearance of spaciousness. By have a crowded closet it appears smaller to the buyer.
Have the siding, deck, stained cement, and railings pressure washed.Put a coat of paint or varnish on the deck.
Clean and organize the garage, work bench, and shed.Clean up grease and oil stains on the garage and driveway.Give your hardwood floors a shine, clean grout on floor tiles.
Get rid of or hide counter 'stuff' too much clutter makes a kitchen or bath look smaller.
If you have an asphalt driveway, consider having it "black topped" for a fresh clean look.
Inspect the wooden trim (window sills, roof line, porches, decks) replace rotten wood and repaint as necessary. Make sure windows and doors open, close, and lock easily.
Add bright bulbs to all areas of the house inside and out.
Add plug in air fresheners all around the house (oil variety in natural soft fragrances are great).
Here are links to different articles on how to help sell your house.
Why your house isn't selling
6 reasons your home isn't selling by MSN
Help my house isn't selling by CNN Money
My house isn't selling what should I do?
What should I do if my house isn't selling? by Home Gain
Sell your house by do it yourself
Prepare your house for sale
Depersonalize your house by real estate abc
How to prepare your house for sale by homebuying
Get your house ready for sale by realtor.com
Getting your house ready for sale by Long and Foster
Getting your house ready for sale by Seacoast
Getting your home ready for sale by homes101
Curb Appeal Curb appeal
How to improve curb appeal by homebuying.com
How to boost your home's curb appeal by Popular Mechanic
Easy way to boost your home's curb appeal by Good Housekeeping
8 tips for curb appeal by bankrateShowing tips
Top home showing tips by a realtor
Tips on home showings by homegain
Preparing your sellers for showings by homeHome Staging
Home staging by home about
Staging your home by globalspan
7 Articles about staging your home by realtor.org
Staging your home to maximize profit by Lisa
I have over 100 pages of tips, advice, reports, and list on how to sell your home and what to look for when buying a home. Go to my website http://www.russravary.com/ for more great info. Or search Michigan real estate
Turning 'For Sale' into 'Sold'
Getting Your Home Ready To Sell Requires A Little Money And A Lot Of Work!
Depersonalize your house
Get rid of family pictures on walls, dressers, and refrigerator.
Odors will kill a sale. Pet odors, smoking odors, old person odor, mildew odors.
Find the source and clean it. Then buy one of the many products to eliminate the smell and make your house smell better. I always remember I was showing a home to a couple with a 5 year child. We walked into a home and the child blurted out "what is that smell". Make sure litter boxes are clean and dog hair is up if you have a pet.
Clean everything! Bathrooms and kitchen, all rooms and closets from ceilings to floors and carpets!!
Caulk all areas that need it (around sinks, bathtubs, shower stalls, windows, doors, etc)
Grease or oil all squeaky doors and gates.Repaint all areas, especially halls, kitchen and family room if possible.
Neutral paint is one of the biggest selling features! If you have wallpaper consider removing it and repainting. I went into one kitchen that had vegetable wallpaper. I'm sure the homeowner loved it but it killed the deal. And my buyer liked the house up to that point.
If you have worn or stained carpeting consider replacing it with a neutral carpeting.
Clean the windows and doors (inside and outside) Make them shine. Make sure they open, close, and lock with ease.
Get rid of extra chairs, cabinets, or anything that takes up floor space in the kitchen. Every lady likes a spacious kitchen. Get rid of the dog bowls, the potato bin, the desk.
Wipe down all light fixtures including outdoor ones.
Edge your flowerbeds and add fresh mulch. Keep the lawn mowed and edged. Trim the shrubs. Get rid of any overgrown bushes or trees that hide the house. Reseed any bald spots in the yard.
If you have a pool make sure the water is sparkling clear.
Plant flowers in bloom or add baskets and planters. Remove anything that has been laying around the yard, or garage ( that you have been saving ie old wood, that old barbecue).
Make sure your front door is stained, varnished, or painted.
Your front door is the first impression. Add a welcoming wreath to your front door. Repair any leaking water pipes or faucets. If there are water stains clean them up after repairing the leak.Replace stained, bowed, or missing ceiling tiles.
Polish all brass fixtures.
Replace your furnace filters and leave a few extra ones out to show you're good at regular maintenance.
Unclutter all cabinets and closets by packing away things you are not currently using. you want the appearance of spaciousness. By have a crowded closet it appears smaller to the buyer.
Have the siding, deck, stained cement, and railings pressure washed.Put a coat of paint or varnish on the deck.
Clean and organize the garage, work bench, and shed.Clean up grease and oil stains on the garage and driveway.Give your hardwood floors a shine, clean grout on floor tiles.
Get rid of or hide counter 'stuff' too much clutter makes a kitchen or bath look smaller.
If you have an asphalt driveway, consider having it "black topped" for a fresh clean look.
Inspect the wooden trim (window sills, roof line, porches, decks) replace rotten wood and repaint as necessary. Make sure windows and doors open, close, and lock easily.
Add bright bulbs to all areas of the house inside and out.
Add plug in air fresheners all around the house (oil variety in natural soft fragrances are great).
Here are links to different articles on how to help sell your house.
Why your house isn't selling
6 reasons your home isn't selling by MSN
Help my house isn't selling by CNN Money
My house isn't selling what should I do?
What should I do if my house isn't selling? by Home Gain
Sell your house by do it yourself
Prepare your house for sale
Depersonalize your house by real estate abc
How to prepare your house for sale by homebuying
Get your house ready for sale by realtor.com
Getting your house ready for sale by Long and Foster
Getting your house ready for sale by Seacoast
Getting your home ready for sale by homes101
Curb Appeal Curb appeal
How to improve curb appeal by homebuying.com
How to boost your home's curb appeal by Popular Mechanic
Easy way to boost your home's curb appeal by Good Housekeeping
8 tips for curb appeal by bankrateShowing tips
Top home showing tips by a realtor
Tips on home showings by homegain
Preparing your sellers for showings by homeHome Staging
Home staging by home about
Staging your home by globalspan
7 Articles about staging your home by realtor.org
Staging your home to maximize profit by Lisa
I have over 100 pages of tips, advice, reports, and list on how to sell your home and what to look for when buying a home. Go to my website http://www.russravary.com/ for more great info. Or search Michigan real estate
Wednesday, July 18, 2007
FSBO myths
FSBO MYTHS
Almost every For Sale By Owner site will tell you that you no longer have to be tied to a Realtor to sell your house. You no longer have to have your home ready to show. You are now the boss and you dictate those things. They are right. You are the boss! But they are leading you down the wrong path.You need to have your home in showing condition. Sure it is a pain to keep it clean. But think of when you looked at houses. What did you think of the homes that were messy or sloppy? What about the one that you could not get scheduled that day. If you found one you liked you most likely never rescheduled to go see that one home.
You have to be ready to show your home when the buyer wants to see it. If you tell a buyer no I'm busy and you will have to schedule it another day. They may not have the time or may not be in that area to see your home. I have sold homes when the buyer was in front of the house with their agent and wanted to get in right then! They walked in and liked the house. They saw the house by driving by and wanted to get in right away. They bought it.
FSBO Myth 1 -You don't have to have your home ready to show and you can show it at your convenience. You will lose buyers guaranteed. There are other houses they can look at. People want to see the home as soon as possible in their time schedule not the sellers.
For sale by owner sites tell you to put a number down that you can be contacted at. Good real estate offices are open 7 days a week. Usually from 9-7 during the week and 10 -3 on the weekends. Good agents respond quickly. If an agent does not call you back within 3 or 4 hours you have the wrong agent. Usually most of the good ones pick up the phone or respond back quickly. As For Sale by Owner of Michigan Real Estate you are now the agent. You need to be accessible and contact potential buyers back quickly. Most salesmen in any field will tell you that you always call back a potential buyer quickly. Get them while they are hot.
FSBO Myth 2 - You are in total control of your time. Wrong! If you don't call back buyers quickly and promptly they may never come and see the house. They may even forget which one it is. Remember when you looked at houses and they all seemed to run together after a while.
For sale by owner sites tell you don't need Realtors. Like all things sure you can do it yourself. But be prepared to know or have your purchase agreement looked at by a lawyer. Have the correct legal disclosures for buyers. Spend the money for advertising. Many real estate agents spend hours and hours in training and reading about real estate, negotiating. They have other real estate agents and their brokers to resolve problems and issues when they are selling Wayne County Real Estate or Washtenaw County Real Estate. For sale by owner sites make it sound easy to sell real estate. If it was easy then Real estate agents would be millionaires from all the easy sales they have done.
FSBO Myth 3 - It is easy to sell your home and doesn't involve too much. Realtors go through constant training, have guidance, experience, and knowledge gained from doing real estate for years. Wouldn't you like somebody that knows what they are doing to do it right? Real Estate contracts are binding and can cost you a lot of money if you don't know what you are doing.Real estate transactions are tricky whether it is Livingston county real estate , Livonia real estate, Oakland County real estate, or Novi real estate As you know it is always better to have a knowledgeable person on your side. Give me a call at (313) 310-9855 to get started listing your Michigan home. For buying tips and selling tips go to my website www.russravary.com
Almost every For Sale By Owner site will tell you that you no longer have to be tied to a Realtor to sell your house. You no longer have to have your home ready to show. You are now the boss and you dictate those things. They are right. You are the boss! But they are leading you down the wrong path.You need to have your home in showing condition. Sure it is a pain to keep it clean. But think of when you looked at houses. What did you think of the homes that were messy or sloppy? What about the one that you could not get scheduled that day. If you found one you liked you most likely never rescheduled to go see that one home.
You have to be ready to show your home when the buyer wants to see it. If you tell a buyer no I'm busy and you will have to schedule it another day. They may not have the time or may not be in that area to see your home. I have sold homes when the buyer was in front of the house with their agent and wanted to get in right then! They walked in and liked the house. They saw the house by driving by and wanted to get in right away. They bought it.
FSBO Myth 1 -You don't have to have your home ready to show and you can show it at your convenience. You will lose buyers guaranteed. There are other houses they can look at. People want to see the home as soon as possible in their time schedule not the sellers.
For sale by owner sites tell you to put a number down that you can be contacted at. Good real estate offices are open 7 days a week. Usually from 9-7 during the week and 10 -3 on the weekends. Good agents respond quickly. If an agent does not call you back within 3 or 4 hours you have the wrong agent. Usually most of the good ones pick up the phone or respond back quickly. As For Sale by Owner of Michigan Real Estate you are now the agent. You need to be accessible and contact potential buyers back quickly. Most salesmen in any field will tell you that you always call back a potential buyer quickly. Get them while they are hot.
FSBO Myth 2 - You are in total control of your time. Wrong! If you don't call back buyers quickly and promptly they may never come and see the house. They may even forget which one it is. Remember when you looked at houses and they all seemed to run together after a while.
For sale by owner sites tell you don't need Realtors. Like all things sure you can do it yourself. But be prepared to know or have your purchase agreement looked at by a lawyer. Have the correct legal disclosures for buyers. Spend the money for advertising. Many real estate agents spend hours and hours in training and reading about real estate, negotiating. They have other real estate agents and their brokers to resolve problems and issues when they are selling Wayne County Real Estate or Washtenaw County Real Estate. For sale by owner sites make it sound easy to sell real estate. If it was easy then Real estate agents would be millionaires from all the easy sales they have done.
FSBO Myth 3 - It is easy to sell your home and doesn't involve too much. Realtors go through constant training, have guidance, experience, and knowledge gained from doing real estate for years. Wouldn't you like somebody that knows what they are doing to do it right? Real Estate contracts are binding and can cost you a lot of money if you don't know what you are doing.Real estate transactions are tricky whether it is Livingston county real estate , Livonia real estate, Oakland County real estate, or Novi real estate As you know it is always better to have a knowledgeable person on your side. Give me a call at (313) 310-9855 to get started listing your Michigan home. For buying tips and selling tips go to my website www.russravary.com
Tuesday, July 17, 2007
Why FSBOs do not always sell
FSBOs, why they don't always sell
Advertising is what sells a house. Getting it out there that your home is for sale. Whether you are a for sale by owner or have your home listed by a real estate agent it needs to be advertised.
The number 1 reason that for sale by owners don't succeed is the lack of advertising. You need to have:
1) a for sale sign out front with a phone number that goes to you directly
2) listing brochure out front of the house with all the facts of the home (the data sheet)
3) getting listed on the local Realtor multiple listing service.By being listed on the local MLS (multiple listing service) in Michigan your home's information is put on multiple websites like http://www.realtor.com/ and http://www.moveinmichigan.com/ . Your home is available to thousands of real estate agents and their clients by having an exclusive right to sell contract with a Realtor. Your home is on the INTERNET and available to thousands of real estate agents across Michigan 24/7. Whenever a client comes in and asks about Michigan Real estate and the criteria meets your home's criteria,.... your home will be one of the homes that will be emailed or shown to the prospective client. That is why most FSBO's don't sell, they don't reach a big enough buying audience. It's that simple.
For sale by owners usually don't have the time or dedication to put the advertising out there. They can get listed on the MLS but if they do not have an exclusive right to sell contract then they may not even be pulled up by the Realtors. The MLS was set up by Realtors so their clients and themselves can advertise and see all the properties listed easily any time of the day or night. The MLS is the give and take of information, and advertising at the touch of a few buttons. (That is not available to most for sale by owners)
Sure a for sale by owner that advertises well, has open houses, has good traffic by the house, puts the word out to his neighbors, family, friends, and co-workers will have a good chance of selling their home if it is in good conditions and priced right for the market.
But over 80% of the homes are sold by Realtors, real estate agents, and the MLS. So if you are thinking of selling your house, advertise, advertise, advertise! Go to http://www.russravary.com/ for more home buying information, home selling tips, search michigan real estate
May your home sell quick whichever way you decide to sell. Russ Ravary
Advertising is what sells a house. Getting it out there that your home is for sale. Whether you are a for sale by owner or have your home listed by a real estate agent it needs to be advertised.
The number 1 reason that for sale by owners don't succeed is the lack of advertising. You need to have:
1) a for sale sign out front with a phone number that goes to you directly
2) listing brochure out front of the house with all the facts of the home (the data sheet)
3) getting listed on the local Realtor multiple listing service.By being listed on the local MLS (multiple listing service) in Michigan your home's information is put on multiple websites like http://www.realtor.com/ and http://www.moveinmichigan.com/ . Your home is available to thousands of real estate agents and their clients by having an exclusive right to sell contract with a Realtor. Your home is on the INTERNET and available to thousands of real estate agents across Michigan 24/7. Whenever a client comes in and asks about Michigan Real estate and the criteria meets your home's criteria,.... your home will be one of the homes that will be emailed or shown to the prospective client. That is why most FSBO's don't sell, they don't reach a big enough buying audience. It's that simple.
For sale by owners usually don't have the time or dedication to put the advertising out there. They can get listed on the MLS but if they do not have an exclusive right to sell contract then they may not even be pulled up by the Realtors. The MLS was set up by Realtors so their clients and themselves can advertise and see all the properties listed easily any time of the day or night. The MLS is the give and take of information, and advertising at the touch of a few buttons. (That is not available to most for sale by owners)
Sure a for sale by owner that advertises well, has open houses, has good traffic by the house, puts the word out to his neighbors, family, friends, and co-workers will have a good chance of selling their home if it is in good conditions and priced right for the market.
But over 80% of the homes are sold by Realtors, real estate agents, and the MLS. So if you are thinking of selling your house, advertise, advertise, advertise! Go to http://www.russravary.com/ for more home buying information, home selling tips, search michigan real estate
May your home sell quick whichever way you decide to sell. Russ Ravary
Sunday, July 8, 2007
Are open houses effective?
For years we have held open houses. But did you know that open houses only sell 2% of the houses. It is just another marketing tool. I have been able to convert lookers into buying the house I have held open. Is it luck or just the right buyer? I do not know. I know agents that have held open hundreds of houses and never sold one.
Open houses are held for four reasons:
1.) To advertise the house
2.) To make the seller's happy that the agent is doing something to market the house
3.) To get the agent more buyers and more exposure.
4.) To get the neighbors inside, talk to them, and get them to talk to their friends, neighbors, relatives and co-workers.
I recommend open houses to be done at least once or twice per house. Sometimes only one or two people come through but you never know when it might be "your buyer". So if you have a Wayne county home, Livingston county home, or Oakland county home that you want to list for sale and have an open house email me. For more information on buying a Michigan home or selling a Michigan home go to my website www.russravary.com
For years we have held open houses. But did you know that open houses only sell 2% of the houses. It is just another marketing tool. I have been able to convert lookers into buying the house I have held open. Is it luck or just the right buyer? I do not know. I know agents that have held open hundreds of houses and never sold one.
Open houses are held for four reasons:
1.) To advertise the house
2.) To make the seller's happy that the agent is doing something to market the house
3.) To get the agent more buyers and more exposure.
4.) To get the neighbors inside, talk to them, and get them to talk to their friends, neighbors, relatives and co-workers.
I recommend open houses to be done at least once or twice per house. Sometimes only one or two people come through but you never know when it might be "your buyer". So if you have a Wayne county home, Livingston county home, or Oakland county home that you want to list for sale and have an open house email me. For more information on buying a Michigan home or selling a Michigan home go to my website www.russravary.com
Saturday, July 7, 2007
21 low cost tips to improve your curb appeal.Buyers will drive by your house when you don't know. Make your home more appealing all the time. Be ready for that buyer. If they don't like the outside they won't come inside. You have to get them inside to sell the house, so curb appeal is important. Here are some quick and easy tips.
1. Trim bushes and Trees neatly so they don't block windows and cut down on light.
2. Trim lower branches of trees so you can see your home from the street.
3. Buy a new doormat.
4. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
5. Plant annuals in your flower beds
6. Put new doorknobs on your doors.
7. Remove the weeds in the cracks of the driveway and concrete
8. Put a fresh coating on your driveway.
9. Cut and edge the grass more often. Trim around walks and trees.
10. Clean up the yard and remove all the debris
11. Be sure kids put away their toys12. Put a fresh coat of paint on the outside.
13. If anything is leaning or crooked straighten it up (crooked shutter, leaning pool).
14. Buy a new mailbox.
15. Upgrade the outside lighting.
16. Polish or replace your house numbers
17. Clean your gutters.
18. Buy a flowering plant and put it in a window you pass by frequently.
19. Put a seasonal wreath on your door.
20. Put fresh mulch or stones down in the beds and have the beds weeded
21. Put a fresh coat of glossy paint on the front door that will accent the entrance way and coordinate with the rest of the colors on the outside.
By doing all of these tips will improve your chances of getting people inside your Oakland County home, or Wayne County home, Livingston county home. Remember it is work that will pay off in selling your Michigan home! For more tips on selling and tips on buying ( over 50 articles on buying ) go to my website http://www.russravary.com
1. Trim bushes and Trees neatly so they don't block windows and cut down on light.
2. Trim lower branches of trees so you can see your home from the street.
3. Buy a new doormat.
4. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
5. Plant annuals in your flower beds
6. Put new doorknobs on your doors.
7. Remove the weeds in the cracks of the driveway and concrete
8. Put a fresh coating on your driveway.
9. Cut and edge the grass more often. Trim around walks and trees.
10. Clean up the yard and remove all the debris
11. Be sure kids put away their toys12. Put a fresh coat of paint on the outside.
13. If anything is leaning or crooked straighten it up (crooked shutter, leaning pool).
14. Buy a new mailbox.
15. Upgrade the outside lighting.
16. Polish or replace your house numbers
17. Clean your gutters.
18. Buy a flowering plant and put it in a window you pass by frequently.
19. Put a seasonal wreath on your door.
20. Put fresh mulch or stones down in the beds and have the beds weeded
21. Put a fresh coat of glossy paint on the front door that will accent the entrance way and coordinate with the rest of the colors on the outside.
By doing all of these tips will improve your chances of getting people inside your Oakland County home, or Wayne County home, Livingston county home. Remember it is work that will pay off in selling your Michigan home! For more tips on selling and tips on buying ( over 50 articles on buying ) go to my website http://www.russravary.com
Thursday, July 5, 2007
Appraisals
When to order an appraisal
You have completed the loan application, put in a purchase offer. When do you order an appraisal? You order an appraisal after the home inspection. You don't want to order and pay for an appraisal until the house passes inspection. If the house fails inspection you don't order the appraisal until you have a signed addendum stating the the seller will do the repairs, give you a lower price, or you accept the house as is. Then you order the appraisal
Appraisals are performed for the benefit of the lender. They are trying to justify the loan amount based on the appraised value. The appraiser will have a copy of the Purchase agreement. (contract). The typical cost of an appraisal is $275 - $350 and is normally paid to the lender upfront by the borrower. Appraisers charge more for rental properties, FHA appraisals, and multi family properties. Commercial appraisals start at $1500 and go up to $5000
An appraisal is subjective. One appraiser may come up with one value and another may come up with a totally different value. An appraisal is not what the house should sell for, it is a educated estimate of value using different value approachs.The most common way an appraisal is done is that the subject house ( the house being bought) is compared to 3-5 homes that are similar in style, size, and location that have sold in the last 6 months. So your appraisal is based on homes that have sold recently that are like yours and near yours!
STYLE By style I mean they compare ranches with ranches. They will not compare a ranch to a colonial. ( or 2 story)
SIZE, AGE By size I mean they compare square footage, number of bedrooms, bath rooms, age, garage, ammenities. Your home may be 1200 sq ft 2 bedroom,1.5 bath, built in 1999, with a 2 car garage. One of the ones that sold may be 1200 sq ft, 3 bedroom, 2 bath, built in 1952, with a 1 car garage. The appraiser has a general formula that he uses to give value to a 3 bedroom versus a 2 bedroom, A home built in 1999 is worth more than one built in 1952 so more value is given to the 1999 home. This gets very complex. What the lender is looking for from the appraiser is that he is not giving some ridiculous value to say the garage or the age. Remember very little value is given to updates. Bigger value would be given to an addition or a garage.
Location If it is in the city lenders like to see the comparable sold homes that the appraiser is using to be within a half a mile. Without crossing main roads or railroad tracks. This common sense, because if you cross a main road the houses can be totally different. The lender wants the appraiser to use the houses closest to the subject property. So if a similar house sold on the same street the appraiser is supposed to use it.That is how many times appraisals are different. Appraisers may be using different comparables (sold houses) and may be using a little different adjustments for the value of a three bedroom home versus a two bedroom home. It gets even more difficult when homes are not selling, or there are very few comparables close by. They sometimes have to go further away and futher back in time. Up to a year ago.
Appraisals are reviewed by the bank. Sometimes the bank has a review department in house or they pay another appraiser to review the appraisal. So there are checks and balances in the system.
What happens is your house does not appraise for the sales price ? Most houses do but every once in a great while one won't.Either the appraiser appraised it for less than the sales price or sometimes the bank rejects the value of the appraisal and will come back with a lower value of the house. What the means to you the buyer is that the sales price must be reduced or you have to bring more money to the table. For example you bought a home for $200,000 and you are borrowing 100%. The bank or the appraiser says it is only worth $190,000. The bank is only going to loan $190,000. You either have to go back to the seller and renegotiate the price or you have to come up with $10,000.
VA Appraisals: If you are getting either of these government mortgages, the appraiser will not only look at valuation but will also look at the condition. If defects are noted, they may require that they be fixed prior to closing. Since the borrower has such a low downpayment, Lenders want to make sure that Borrowers are not hit with any up-front maintenance expenses. The Seller is not obligated to make the repairs; consequently, they will have to be negotiated.
Appraisals are not a guarantee of value. Most lenders will have a disclaimer to that effect. Remember, the appraiser has a copy of your fully negotiated contract BEFORE establishing the appraisal value. It is more of a confirmation of value.
Russ Ravary
You have completed the loan application, put in a purchase offer. When do you order an appraisal? You order an appraisal after the home inspection. You don't want to order and pay for an appraisal until the house passes inspection. If the house fails inspection you don't order the appraisal until you have a signed addendum stating the the seller will do the repairs, give you a lower price, or you accept the house as is. Then you order the appraisal
Appraisals are performed for the benefit of the lender. They are trying to justify the loan amount based on the appraised value. The appraiser will have a copy of the Purchase agreement. (contract). The typical cost of an appraisal is $275 - $350 and is normally paid to the lender upfront by the borrower. Appraisers charge more for rental properties, FHA appraisals, and multi family properties. Commercial appraisals start at $1500 and go up to $5000
An appraisal is subjective. One appraiser may come up with one value and another may come up with a totally different value. An appraisal is not what the house should sell for, it is a educated estimate of value using different value approachs.The most common way an appraisal is done is that the subject house ( the house being bought) is compared to 3-5 homes that are similar in style, size, and location that have sold in the last 6 months. So your appraisal is based on homes that have sold recently that are like yours and near yours!
STYLE By style I mean they compare ranches with ranches. They will not compare a ranch to a colonial. ( or 2 story)
SIZE, AGE By size I mean they compare square footage, number of bedrooms, bath rooms, age, garage, ammenities. Your home may be 1200 sq ft 2 bedroom,1.5 bath, built in 1999, with a 2 car garage. One of the ones that sold may be 1200 sq ft, 3 bedroom, 2 bath, built in 1952, with a 1 car garage. The appraiser has a general formula that he uses to give value to a 3 bedroom versus a 2 bedroom, A home built in 1999 is worth more than one built in 1952 so more value is given to the 1999 home. This gets very complex. What the lender is looking for from the appraiser is that he is not giving some ridiculous value to say the garage or the age. Remember very little value is given to updates. Bigger value would be given to an addition or a garage.
Location If it is in the city lenders like to see the comparable sold homes that the appraiser is using to be within a half a mile. Without crossing main roads or railroad tracks. This common sense, because if you cross a main road the houses can be totally different. The lender wants the appraiser to use the houses closest to the subject property. So if a similar house sold on the same street the appraiser is supposed to use it.That is how many times appraisals are different. Appraisers may be using different comparables (sold houses) and may be using a little different adjustments for the value of a three bedroom home versus a two bedroom home. It gets even more difficult when homes are not selling, or there are very few comparables close by. They sometimes have to go further away and futher back in time. Up to a year ago.
Appraisals are reviewed by the bank. Sometimes the bank has a review department in house or they pay another appraiser to review the appraisal. So there are checks and balances in the system.
What happens is your house does not appraise for the sales price ? Most houses do but every once in a great while one won't.Either the appraiser appraised it for less than the sales price or sometimes the bank rejects the value of the appraisal and will come back with a lower value of the house. What the means to you the buyer is that the sales price must be reduced or you have to bring more money to the table. For example you bought a home for $200,000 and you are borrowing 100%. The bank or the appraiser says it is only worth $190,000. The bank is only going to loan $190,000. You either have to go back to the seller and renegotiate the price or you have to come up with $10,000.
VA Appraisals: If you are getting either of these government mortgages, the appraiser will not only look at valuation but will also look at the condition. If defects are noted, they may require that they be fixed prior to closing. Since the borrower has such a low downpayment, Lenders want to make sure that Borrowers are not hit with any up-front maintenance expenses. The Seller is not obligated to make the repairs; consequently, they will have to be negotiated.
Appraisals are not a guarantee of value. Most lenders will have a disclaimer to that effect. Remember, the appraiser has a copy of your fully negotiated contract BEFORE establishing the appraisal value. It is more of a confirmation of value.
Russ Ravary
Tuesday, July 3, 2007
Making an offer
Ask for this Instead!!!
So you are ready to put an offer in on a Wayne County home, or any Michigan house for sale. Here is another way to negotiate.Sellers sometimes get stuck on a price in their head. The way to get around it and get a lower bottom line to you is ask in a different way. People sometimes don't think about the extras if it is not showing up as a black and white number. So here is different ideas on how to negotiate.
Here are things to ask for:
1.) Personal Property. Ask for the pool table, ask for furniture, ask for the appliances, ask for the riding mower, or the boat. These are give mees that sellers may say let's just throw it in to sell the house. It's free for you and may save you a few dollars. Especially if you need them.
2) Home Warranty. This help protects you if there is a major repair within the first year. The seller doesn't have to pay for this until closing, so it is no money out of his pocket.
3.) Repairs. If you know of something that needs repaired. Ask for it to be fixed before closing. It will save you the cost and time of having it fixed yourself.
4.) Closing Costs. Did you know that lender allows the seller to pay up to 3% of the purchase price? If you don't have a lot of money this is a great way to get a reduction. You can save your money to buy furniture or things you need when you move in. The seller can pay for the title insurance, appraisal, survey, bank fees and even set up your escrow account. They can even pay for your pre-paid interest. (that is the interest until the first of the month)
5.) Tax pro-rations. This is a great one. The seller paid this months ago and may not even think of getting the pro-rated taxes back from you the buyer. This can add up to several thousand dollars. The seller usually never thinks of this in dollars because he already paid it and it is out of his pocket.
Whether you are buying Livonia real estate, Novi real estate, or Oakland County Home, Livingston County Home, or Washtenaw county home I hope these real estate buyer tips help you get a little lower price for your dream home. Russ Ravary
So you are ready to put an offer in on a Wayne County home, or any Michigan house for sale. Here is another way to negotiate.Sellers sometimes get stuck on a price in their head. The way to get around it and get a lower bottom line to you is ask in a different way. People sometimes don't think about the extras if it is not showing up as a black and white number. So here is different ideas on how to negotiate.
Here are things to ask for:
1.) Personal Property. Ask for the pool table, ask for furniture, ask for the appliances, ask for the riding mower, or the boat. These are give mees that sellers may say let's just throw it in to sell the house. It's free for you and may save you a few dollars. Especially if you need them.
2) Home Warranty. This help protects you if there is a major repair within the first year. The seller doesn't have to pay for this until closing, so it is no money out of his pocket.
3.) Repairs. If you know of something that needs repaired. Ask for it to be fixed before closing. It will save you the cost and time of having it fixed yourself.
4.) Closing Costs. Did you know that lender allows the seller to pay up to 3% of the purchase price? If you don't have a lot of money this is a great way to get a reduction. You can save your money to buy furniture or things you need when you move in. The seller can pay for the title insurance, appraisal, survey, bank fees and even set up your escrow account. They can even pay for your pre-paid interest. (that is the interest until the first of the month)
5.) Tax pro-rations. This is a great one. The seller paid this months ago and may not even think of getting the pro-rated taxes back from you the buyer. This can add up to several thousand dollars. The seller usually never thinks of this in dollars because he already paid it and it is out of his pocket.
Whether you are buying Livonia real estate, Novi real estate, or Oakland County Home, Livingston County Home, or Washtenaw county home I hope these real estate buyer tips help you get a little lower price for your dream home. Russ Ravary
Sunday, July 1, 2007
Home inspections
You should never go without a home inspection by a certified home inspector. They are trained, educated, and can spot items that a ordinary person would miss. They do it every day. they are a wealth of information. so whether you are buying Livonia real estate, Novi real estate, or any Michigan home for sale you should get a home inspection done. This checklist can serve as a reminder of some things to consider to make wise home buying decisions, to help aid you in your decision.
Check the foundation, floors, walls and poured concrete. Are there cracks, are there evidence of bowed walls?Are there water stains on the basement walls?
Make sure there's no evidence of water seepage or moisture problems. Are there electrical fixtures in the basement that look improperly wired?
Outside does the ground slope away from the house for drainage.
If there is a sump pump does it work
Check to see if the crawl space is dry, ventedWhile in the crawl space check for condition of floor joists.
Inspection by qualified exterminator is necessary for existing and potential problems related to wood rot and termites (termite inspections are an extra cost and separate inspection).
Check the condition of Underlayment flooring, whether plank or plywood.
Check for solid construction of bridging and joists.
Check walls, whether drywall or plaster. Make sure there are no water marks.
Make sure the attic is sufficiently insulated and ventilated. Check for mold spots for inadequate ventilation
Check that the fireplace damper is in working order, and flues to the chimney are clear.
On heating and air-conditioning systems, check what minor periodic maintenance is required, such as oil fan motor, lubricate bearings, clean humidifier, replace filters, etc.
Check the hot water system -- type and gallon capacity. How long has the present unit been in service?
Check the electricity to make sure that the standard house current, number of circuits, outlets and fuses or circuit breakers are sufficient for everyday needs, and the condition of wiring is good.
Check for good water pressure throughout house and that the tie-in to local water supply facilities, etc. are all in working order. If well and septic you should have a seperate water and well inspection done even if costs extra.
Bathroom and kitchen fixtures should be in good shape. Is there evidence of water leakage under the sinks. Make sure the range, refrigerator, dishwater/disposal, laundry facilities, etc. are all in working order.
Check exterior lot and landscaping. Are trees and shrubs overhanging electrical and phone lines. Is it properly graded or contoured?
Check that fences, walls, patio and driveway are in good condition. Does concrete have major cracks or uneven?
Be sure exterior walls are suitable to weather conditions. Is caulk missing? Does it need repainting? Are boards rotted?
Check doors and windows. Are they easy to open and close (or replace) for storm/screen removal or installation? Is there moisture between the seals. Is any part of the window rotted?
Are the roof, gutters and downspouts in good condition? Are they clean? Are they sagging?
Is the garage door or opener in good working order? Is there sufficient electrical and heating access in the garage?
After you have the home inspected you now know whether your "Plymouth home" or "metro Detroit home" needs major or minor repairs. Every house has repairs. If you have major repair you need to have the seller fix them, renegotiate the sales price, or accept the home as is. It is your choice. The seller usually has the choice to do the repair or back out of the deal.
Good luck on this final phase of the buying process. Russ Ravary
Check the foundation, floors, walls and poured concrete. Are there cracks, are there evidence of bowed walls?Are there water stains on the basement walls?
Make sure there's no evidence of water seepage or moisture problems. Are there electrical fixtures in the basement that look improperly wired?
Outside does the ground slope away from the house for drainage.
If there is a sump pump does it work
Check to see if the crawl space is dry, ventedWhile in the crawl space check for condition of floor joists.
Inspection by qualified exterminator is necessary for existing and potential problems related to wood rot and termites (termite inspections are an extra cost and separate inspection).
Check the condition of Underlayment flooring, whether plank or plywood.
Check for solid construction of bridging and joists.
Check walls, whether drywall or plaster. Make sure there are no water marks.
Make sure the attic is sufficiently insulated and ventilated. Check for mold spots for inadequate ventilation
Check that the fireplace damper is in working order, and flues to the chimney are clear.
On heating and air-conditioning systems, check what minor periodic maintenance is required, such as oil fan motor, lubricate bearings, clean humidifier, replace filters, etc.
Check the hot water system -- type and gallon capacity. How long has the present unit been in service?
Check the electricity to make sure that the standard house current, number of circuits, outlets and fuses or circuit breakers are sufficient for everyday needs, and the condition of wiring is good.
Check for good water pressure throughout house and that the tie-in to local water supply facilities, etc. are all in working order. If well and septic you should have a seperate water and well inspection done even if costs extra.
Bathroom and kitchen fixtures should be in good shape. Is there evidence of water leakage under the sinks. Make sure the range, refrigerator, dishwater/disposal, laundry facilities, etc. are all in working order.
Check exterior lot and landscaping. Are trees and shrubs overhanging electrical and phone lines. Is it properly graded or contoured?
Check that fences, walls, patio and driveway are in good condition. Does concrete have major cracks or uneven?
Be sure exterior walls are suitable to weather conditions. Is caulk missing? Does it need repainting? Are boards rotted?
Check doors and windows. Are they easy to open and close (or replace) for storm/screen removal or installation? Is there moisture between the seals. Is any part of the window rotted?
Are the roof, gutters and downspouts in good condition? Are they clean? Are they sagging?
Is the garage door or opener in good working order? Is there sufficient electrical and heating access in the garage?
After you have the home inspected you now know whether your "Plymouth home" or "metro Detroit home" needs major or minor repairs. Every house has repairs. If you have major repair you need to have the seller fix them, renegotiate the sales price, or accept the home as is. It is your choice. The seller usually has the choice to do the repair or back out of the deal.
Good luck on this final phase of the buying process. Russ Ravary
Tuesday, June 19, 2007
flipping homes
Flipping and Fixer-uppers
So you are thinking of buying a fixer upper, fixing it and reselling it. The key is in planning, good estimating. The oft heard phrase "Buyer Beware" is never more appropriate than when considering the purchase of a fixer-upper. You must know exactly what you’re getting into before buying.
It’s commonly believed that fixer-upper properties represent easy money that is ripe for the taking - that you can buy it, do a little work on it in your spare time, and then flip it. This isn't the case most of the time. Although, with proper planning and thought, money can be made by buying “fixer uppers”. And for many first time buyers who intend to live in the house while working on it, buying a fixer-upper can be a great option. By buying a fixer upper you get sweat equity. You will gain equity in the home by bringing it up to normal standards. The key is to buy a home below market price and to be able to put less money into it than a comparable good home. If you can buy a ready to move in home (in top shape) for $200,000 and you want to buy a fixer upper for $150,000. Then you should not have to spend more than $35,000 - $40,000 to fix it up to make it a deal. It’s also less risky buying a fixer-upper when you can live in the house while fixing it. And of course, by living in the house for at least 24 months you should qualify for the IRS exemption of no capital gains.
The most important thing to know before making a decision on such a purchase is what needs to be fixed. Do a spreadsheet. Jot down all the costs. Give yourself a cushion for unseen expenses. Any time you are spending money on improving a home with the notion of selling it later, strive to spend your money on things that buyers can easily see. Things like new paint and removing trash from the property cost little but have instant impact on curb appeal. Simple landscaping is the best. Landscaping does not bring a large return.
Houses that have only cosmetic problems like peeling paint, an overgrown yard, shag or worn carpet or lots of wallpaper are the best bet. Fixing and cleaning cosmetic issues is fairly easy and inexpensive. It virtually always gives a good return on investment, particularly when you can do the work yourself. Kitchen and bathroom remodeling usually pays a nice return. Don’t be afraid of buying a fixer-upper in need of this kind of repair. Again the key is don’t go over the top. Do a good job, a nice job. But if it is a $100,000 house you don’t want to put in Granite counter tops and a jetted tub. Properties with structural damage, or a floor plan that requires major work to remedy, may not be "fixed up" at a profit.
If you do not have construction experience or done a fixer upper before. Have an inspection for hidden damage performed by a home inspector, a friend that has experience, or construction professional before buying a fixer-upper. Michigan purchase agreements have inspections clauses in them; make sure you use that clause when doing a fixer upper. Then be sure to negotiate to try and get the seller to pay for all or part of the cost of needed repairs uncovered by the inspection (that were unseen). Often, sellers will be willing to lower the sales price to sell the home "as is" instead of paying for the repairs. Give the seller three choices, fix it themselves, hire a contractor to fix it, or reduce the sales price so you can fix it.
Be careful that you don’t over pay. Especially if you plan to resell quickly, paying too much up front can doom your plans for quick profit. Research the market for reselling and have an exit plan for selling the house in place before making an offer.
Remember when buying a fixer upper to put in the cost of paying a realtor to re sell it. Many people forget this. They have figured a $6,000 profit but forgot about the selling commission.
What about the cost of the mortgage and interest? If you aren’t living in the home, the mortgage payment is a cost! If it is going to take 4 months to fix it up then figure the payment as an expense. A $1500 payment adds up. In four months it is $6000 of profit eaten up. What happens if the house doesn’t sell right away? What happens if you have to sit on the house for 10 months? At $1500 a month then $15,000 of your profit is gone.
If you are not going to live in the home there is one last thing item to remember is that if it is a second home, or investment property (in Michigan) you do not get the homestead exemption. Your taxes are going to be much higher. Approximately 40% higher. You have to figure that in as a cost also. See my mileage rates to see the difference in homestead and non-homestead rates. There is even big difference in mileage rates in Livonia real estate, Northville real estate, and Novi real estate.
So you are thinking of buying a fixer upper, fixing it and reselling it. The key is in planning, good estimating. The oft heard phrase "Buyer Beware" is never more appropriate than when considering the purchase of a fixer-upper. You must know exactly what you’re getting into before buying.
It’s commonly believed that fixer-upper properties represent easy money that is ripe for the taking - that you can buy it, do a little work on it in your spare time, and then flip it. This isn't the case most of the time. Although, with proper planning and thought, money can be made by buying “fixer uppers”. And for many first time buyers who intend to live in the house while working on it, buying a fixer-upper can be a great option. By buying a fixer upper you get sweat equity. You will gain equity in the home by bringing it up to normal standards. The key is to buy a home below market price and to be able to put less money into it than a comparable good home. If you can buy a ready to move in home (in top shape) for $200,000 and you want to buy a fixer upper for $150,000. Then you should not have to spend more than $35,000 - $40,000 to fix it up to make it a deal. It’s also less risky buying a fixer-upper when you can live in the house while fixing it. And of course, by living in the house for at least 24 months you should qualify for the IRS exemption of no capital gains.
The most important thing to know before making a decision on such a purchase is what needs to be fixed. Do a spreadsheet. Jot down all the costs. Give yourself a cushion for unseen expenses. Any time you are spending money on improving a home with the notion of selling it later, strive to spend your money on things that buyers can easily see. Things like new paint and removing trash from the property cost little but have instant impact on curb appeal. Simple landscaping is the best. Landscaping does not bring a large return.
Houses that have only cosmetic problems like peeling paint, an overgrown yard, shag or worn carpet or lots of wallpaper are the best bet. Fixing and cleaning cosmetic issues is fairly easy and inexpensive. It virtually always gives a good return on investment, particularly when you can do the work yourself. Kitchen and bathroom remodeling usually pays a nice return. Don’t be afraid of buying a fixer-upper in need of this kind of repair. Again the key is don’t go over the top. Do a good job, a nice job. But if it is a $100,000 house you don’t want to put in Granite counter tops and a jetted tub. Properties with structural damage, or a floor plan that requires major work to remedy, may not be "fixed up" at a profit.
If you do not have construction experience or done a fixer upper before. Have an inspection for hidden damage performed by a home inspector, a friend that has experience, or construction professional before buying a fixer-upper. Michigan purchase agreements have inspections clauses in them; make sure you use that clause when doing a fixer upper. Then be sure to negotiate to try and get the seller to pay for all or part of the cost of needed repairs uncovered by the inspection (that were unseen). Often, sellers will be willing to lower the sales price to sell the home "as is" instead of paying for the repairs. Give the seller three choices, fix it themselves, hire a contractor to fix it, or reduce the sales price so you can fix it.
Be careful that you don’t over pay. Especially if you plan to resell quickly, paying too much up front can doom your plans for quick profit. Research the market for reselling and have an exit plan for selling the house in place before making an offer.
Remember when buying a fixer upper to put in the cost of paying a realtor to re sell it. Many people forget this. They have figured a $6,000 profit but forgot about the selling commission.
What about the cost of the mortgage and interest? If you aren’t living in the home, the mortgage payment is a cost! If it is going to take 4 months to fix it up then figure the payment as an expense. A $1500 payment adds up. In four months it is $6000 of profit eaten up. What happens if the house doesn’t sell right away? What happens if you have to sit on the house for 10 months? At $1500 a month then $15,000 of your profit is gone.
If you are not going to live in the home there is one last thing item to remember is that if it is a second home, or investment property (in Michigan) you do not get the homestead exemption. Your taxes are going to be much higher. Approximately 40% higher. You have to figure that in as a cost also. See my mileage rates to see the difference in homestead and non-homestead rates. There is even big difference in mileage rates in Livonia real estate, Northville real estate, and Novi real estate.
Good luck and happy house hunting. Russ Ravary
Thursday, May 31, 2007
Getting started as a young home buyer
Getting Started as a young home buyer
Buying your first home can be scary, but if you follow these tips, you will do just fine! Also talk with your local mortgageg lender and real estate agent for more tips as this is just to get you thinking.
Many young people do not realize that they can afford a home, that they can get approved for a mortgage. Sometimes you need little or no money to buy a home. There are Government programs for first time homebuyers (FHA) and there are 100%, no money down programs.
The key is to plan ahead. You may need to repair your credit, save for a downpayment, get more time on a job, save for closing costs. You need to know what you have to do to get started. You may be one of the "great buyers" and have everything you need to get started right now and not know it!Many times you do not need money. We can ask the seller to pay your closing costs. There are many programs that offer low rates and no money. 100% financing may be the way to go for you. But taking the first step and seeing what you need to do now is important. It will make the home buying process so easy. Call me to set up an appointment to go over your credit report, and credit scores. You may have imperfect credit, need to reduce debt, or improve your credit scores. The key is to get started. Even though you may have bruised credit, or too much credit I have helped many people improve their credit. They then we able to buy homes.
Create Your "Wish List". Make your wish list. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're looking for will help you focus your search. And it will help your local Wayne County real estate broker, too.
Search Michigan houses for sale.
Think about where and why you want to buy in an area. How far to work? School? Family?Drive by, and look at many Wayne County homes (again we handle Oakland County houses for sale, Washtenaw county houses for sale, Livingston County houses for sales, as well as Wayne county houses for sale. We just use Wayne county as an example in this report). See as many possible to get a better feel for ones available in your price range. Visit my site often and search for homes. Keep track of what you like and dislike about each home that you visit by printing and using our Home Visits Worksheet.
Also consider the market value of the home, any special circumstances surrounding the sale of the home, how much you can afford to pay for the home, and the condition of the home when determining whether the home is right for you.
When you find a Wayne County home in your price range and you want to buy it, visit the Wayne County neighborhood at various times to get a more complete understanding of its activity. Talk with your prospective neighbors about what it's like to live in the area. Take a day and commute to your job from the area. And look at the home more critically -- you may discover flaws you hadn't noticed during your first visit.
Another aspect to consider is the financing you will use to purchase the home. For example, the seller may help pay closing costs such as transfer taxes or points on a mortgage. If this is the case, you may be more willing to accept the seller's asking price. Your local Wayne County real estate sales professional (Russ Ravary) can offer some assistance regarding how much you should offer, but the final decision is yours.
Buying your first home can be scary, but if you follow these tips, you will do just fine! Also talk with your local mortgageg lender and real estate agent for more tips as this is just to get you thinking.
Many young people do not realize that they can afford a home, that they can get approved for a mortgage. Sometimes you need little or no money to buy a home. There are Government programs for first time homebuyers (FHA) and there are 100%, no money down programs.
The key is to plan ahead. You may need to repair your credit, save for a downpayment, get more time on a job, save for closing costs. You need to know what you have to do to get started. You may be one of the "great buyers" and have everything you need to get started right now and not know it!Many times you do not need money. We can ask the seller to pay your closing costs. There are many programs that offer low rates and no money. 100% financing may be the way to go for you. But taking the first step and seeing what you need to do now is important. It will make the home buying process so easy. Call me to set up an appointment to go over your credit report, and credit scores. You may have imperfect credit, need to reduce debt, or improve your credit scores. The key is to get started. Even though you may have bruised credit, or too much credit I have helped many people improve their credit. They then we able to buy homes.
Create Your "Wish List". Make your wish list. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're looking for will help you focus your search. And it will help your local Wayne County real estate broker, too.
Search Michigan houses for sale.
Think about where and why you want to buy in an area. How far to work? School? Family?Drive by, and look at many Wayne County homes (again we handle Oakland County houses for sale, Washtenaw county houses for sale, Livingston County houses for sales, as well as Wayne county houses for sale. We just use Wayne county as an example in this report). See as many possible to get a better feel for ones available in your price range. Visit my site often and search for homes. Keep track of what you like and dislike about each home that you visit by printing and using our Home Visits Worksheet.
Also consider the market value of the home, any special circumstances surrounding the sale of the home, how much you can afford to pay for the home, and the condition of the home when determining whether the home is right for you.
When you find a Wayne County home in your price range and you want to buy it, visit the Wayne County neighborhood at various times to get a more complete understanding of its activity. Talk with your prospective neighbors about what it's like to live in the area. Take a day and commute to your job from the area. And look at the home more critically -- you may discover flaws you hadn't noticed during your first visit.
Another aspect to consider is the financing you will use to purchase the home. For example, the seller may help pay closing costs such as transfer taxes or points on a mortgage. If this is the case, you may be more willing to accept the seller's asking price. Your local Wayne County real estate sales professional (Russ Ravary) can offer some assistance regarding how much you should offer, but the final decision is yours.
Saturday, May 26, 2007
Buying an Affordable home in Michigan
Buying an Affordable home in Michigan.
Most lenders will over approve you for a mortgage. You want to figure out yourself how much you can afford to pay each month and then consult a mortgage and Realtor. There is no sense in over extending yourself when buying a home. We all want more, bigger, and better. But you do not want to be house poor or get yourself in a mortgage that will only get you into trouble ( negative amortization loans, pick a payment loans) Even an adjustable rate mortgage may be risky for some people. So choose your mortgage carefully. You have to be the final judge on what you can afford. Please think hard on this. Many people are losing their homes in 2006 and 2007 because they took risky loans, over extended themselves, or took the largest loan the lenders would give them. You want to enjoy your home for many years to come.
Please note that we handle Wayne county homes, Washtenaw county homes, and Livingston county homes. We just used Oakland county homes as an example in this article. Search Michigan Homes
There are many factors to consider when looking for a home
Types of Oakland County homes - There are many different types of homes: single family, condominium, townhouse, and duplex. Additionally, the type of home you select may impact your buying power.
New or existing home - Consider whether you want to move into a new home, nearly new, or older home. In general, new Oakland County homes are more costly than existing homes. Especially when you figure in the items that are not in the house yet. Such as window treatments, landscaping, decks, and patios. However, the condition of an existing home can significantly increase your maintenance requirements. There may be items that need replacing or upgrading.
Quality of home - Examine the condition of the home. Carefully inspect the structure, interior and exterior of the house for defects. The additional renovation costs may add up over time and exceed your maintenance estimates. Will the house need a lot of repairs? How old are the appliances? The purchase of the home is one step, but the renovations and repairs are added costs that need to be considered. Would you prefer to purchase a newer, costlier home or would you prefer to invest additional time and money into renovations and repairs for an older, less expensive home?
Features - Consider the features of the home. Does it have gas or electric heating? Does it have air conditioning? How many bedrooms does it have? How many bedrooms do you need? All of these characteristics will influence the price of the home and your monthly housing expenses.
Location - Would you rather live in the city, the country, or the suburbs? Do you want to be close to work? Gas prices have made this more important in the last few years. Do you want to be near parks or the library? What about a shopping center? Is it important for you to be near major highways or public transportation? Get a feel for the surrounding area by exploring the Oakland County neighborhood and talking to residents.
Crime rate - Look into the safety of the Oakland County neighborhood. Does the Oakland County neighborhood have a high crime rate? Has there been an increase in crimes committed in the area? If so, how will this influence the future property value of your home?
Michigan School system - The quality of the school system in a particular area is not only important to families with children but can influence the property value of your home.
Economic stability of area - The economic growth and stability of the area surrounding a Oakland County home can influence its future property value.
Oakland County Home tax - Examine the annual amount of local Oakland County real estate taxes (millage rates) and other assessments levied on Oakland County homes in the neighborhood you are considering. Sometimes the amount of taxes are so much greater in one city that you may be able to buy more expensive home in another city with lower tax rates.
I as a person want you to be able to live in the home you buy for many years. I don't want to just "make a sale". I definitely don't want you to over buy and lose your home in foreclosure or bankruptcy. Many of my customers become friends and feel free to call me many years later. I want you to feel good about your home purchase and the effort I make for you. We want you to enjoy your home and enjoy the memories you get from it.
Russ Ravary
Most lenders will over approve you for a mortgage. You want to figure out yourself how much you can afford to pay each month and then consult a mortgage and Realtor. There is no sense in over extending yourself when buying a home. We all want more, bigger, and better. But you do not want to be house poor or get yourself in a mortgage that will only get you into trouble ( negative amortization loans, pick a payment loans) Even an adjustable rate mortgage may be risky for some people. So choose your mortgage carefully. You have to be the final judge on what you can afford. Please think hard on this. Many people are losing their homes in 2006 and 2007 because they took risky loans, over extended themselves, or took the largest loan the lenders would give them. You want to enjoy your home for many years to come.
Please note that we handle Wayne county homes, Washtenaw county homes, and Livingston county homes. We just used Oakland county homes as an example in this article. Search Michigan Homes
There are many factors to consider when looking for a home
Types of Oakland County homes - There are many different types of homes: single family, condominium, townhouse, and duplex. Additionally, the type of home you select may impact your buying power.
New or existing home - Consider whether you want to move into a new home, nearly new, or older home. In general, new Oakland County homes are more costly than existing homes. Especially when you figure in the items that are not in the house yet. Such as window treatments, landscaping, decks, and patios. However, the condition of an existing home can significantly increase your maintenance requirements. There may be items that need replacing or upgrading.
Quality of home - Examine the condition of the home. Carefully inspect the structure, interior and exterior of the house for defects. The additional renovation costs may add up over time and exceed your maintenance estimates. Will the house need a lot of repairs? How old are the appliances? The purchase of the home is one step, but the renovations and repairs are added costs that need to be considered. Would you prefer to purchase a newer, costlier home or would you prefer to invest additional time and money into renovations and repairs for an older, less expensive home?
Features - Consider the features of the home. Does it have gas or electric heating? Does it have air conditioning? How many bedrooms does it have? How many bedrooms do you need? All of these characteristics will influence the price of the home and your monthly housing expenses.
Location - Would you rather live in the city, the country, or the suburbs? Do you want to be close to work? Gas prices have made this more important in the last few years. Do you want to be near parks or the library? What about a shopping center? Is it important for you to be near major highways or public transportation? Get a feel for the surrounding area by exploring the Oakland County neighborhood and talking to residents.
Crime rate - Look into the safety of the Oakland County neighborhood. Does the Oakland County neighborhood have a high crime rate? Has there been an increase in crimes committed in the area? If so, how will this influence the future property value of your home?
Michigan School system - The quality of the school system in a particular area is not only important to families with children but can influence the property value of your home.
Economic stability of area - The economic growth and stability of the area surrounding a Oakland County home can influence its future property value.
Oakland County Home tax - Examine the annual amount of local Oakland County real estate taxes (millage rates) and other assessments levied on Oakland County homes in the neighborhood you are considering. Sometimes the amount of taxes are so much greater in one city that you may be able to buy more expensive home in another city with lower tax rates.
I as a person want you to be able to live in the home you buy for many years. I don't want to just "make a sale". I definitely don't want you to over buy and lose your home in foreclosure or bankruptcy. Many of my customers become friends and feel free to call me many years later. I want you to feel good about your home purchase and the effort I make for you. We want you to enjoy your home and enjoy the memories you get from it.
Russ Ravary
Tuesday, May 22, 2007
Real estate honesty
The question of the day is would you rather have a real estate agent come in and tell you how nice your house looks and compliment you. Or would you rather have them come in and tell you what you need to do to make the house more presentable.
The reason why I say this is that somebody I was talking to was mad at their real estate agent. One of the reasons why was that she was upset he didn't come in and tell her how nice her house looked. She has a nice home but there is always something to make the house more presentable.
Unfortunately in our business people can pick and chose what they want to listen to when they sell their home. It is their right!. They don't have to do any of the things we say. I have told people things and they have done none of them. There house still sits. In this market you need to listen to the little things that might help sell your house.
Have you asked your realtor what you can do to help make your house more presentable? Take a pro-active approach. In this market making the house look good will help it a little. If it costs less than a $1000 to do it, I would take the time and money and get it done. This market is very tough to sell. You need to do everything you can to help sell your home.
In this Metro Detroit real estate market it is taking the right person, a lower price, and a nice home to sell. Buyers have so many to look at. They have the ability to pick and choose and do a low ball price. They don't need to buy your home when the guy down the street will sell it to them for $10,000 less. They don't need to buy your home when another home in the city is nicer even though "you think your sub is the best". It doesn't matter that you have $30,000 more into the house than the house is listed for. The market is low, if you want to sell you have to adjust your thinking.
Don't put your house on the market if you don't need to sell right now. You are going to take a lower price. Get it into your head. If you are going to move you need to make your home more presentable.
For more real estate and mortgage information go to my website www.russravary.com
May your worries be small and a good thing happen to you today.
Russ Ravary
The reason why I say this is that somebody I was talking to was mad at their real estate agent. One of the reasons why was that she was upset he didn't come in and tell her how nice her house looked. She has a nice home but there is always something to make the house more presentable.
Unfortunately in our business people can pick and chose what they want to listen to when they sell their home. It is their right!. They don't have to do any of the things we say. I have told people things and they have done none of them. There house still sits. In this market you need to listen to the little things that might help sell your house.
Have you asked your realtor what you can do to help make your house more presentable? Take a pro-active approach. In this market making the house look good will help it a little. If it costs less than a $1000 to do it, I would take the time and money and get it done. This market is very tough to sell. You need to do everything you can to help sell your home.
In this Metro Detroit real estate market it is taking the right person, a lower price, and a nice home to sell. Buyers have so many to look at. They have the ability to pick and choose and do a low ball price. They don't need to buy your home when the guy down the street will sell it to them for $10,000 less. They don't need to buy your home when another home in the city is nicer even though "you think your sub is the best". It doesn't matter that you have $30,000 more into the house than the house is listed for. The market is low, if you want to sell you have to adjust your thinking.
Don't put your house on the market if you don't need to sell right now. You are going to take a lower price. Get it into your head. If you are going to move you need to make your home more presentable.
For more real estate and mortgage information go to my website www.russravary.com
May your worries be small and a good thing happen to you today.
Russ Ravary
Saturday, May 19, 2007
Ready to look for homes
KNOW WHAT YOU CAN AFFORD. Lenders can usually approve you for more than you can actually afford. You need to sit down and figure out what payment you can afford and live with before you meet with a lender.
*Choose a lender and get pre-approved - take in your w-2s, your asset statements, your paystubs. Have your lender go over your credit score, ask questions about your credit report. Even if you have imperfect credit I have tips on how to raise your credit score. *Go over your mortgage options. Ask your lender about the different type of loans, one may be better suited for you than another. You may not like risk and want a fixed loan whereas some people would rather have a lower payment and take the risk of the rate going up. Ask about FHA Loans, biweekly programs, ARM loans, no money down loans, and buying points. *Sit down or call Russ Ravary and tell him what you are looking for in a home, what cities, what specifications. *Have Russ Ravary your realtor send you emails of all homes that meet your needs and in your price range. *Set up a time so Russ can take you out and show you homes that meet your needs and price. *Shop close to your price limit.
WHAT ARE YOUR NEEDS
What city do you want to live in? What subdivision? Do you want to be close to the expressways or downtown? How far is it from work, from family, from friends?
What size of home do you want? How many Square feet?
How many of Bedrooms , How many of bathrooms, kitchen, basement, library, study, great room, family room, formal dining room, study, master bedroom, closet space.
Fenced or open yard, pool, or community pool, how many car garage.? Is privacy important to you. Do you want mature trees?What style of house? Tudor, colonial, ranch, cape cod? How many stories? Don't want to walk stairs? Need a first floor laundry? Want all the bedrooms on the same floor? How old of a home would you like? Do you want the character of an old home or do you want a home less than 5 years old? What type of floor plan do you want? An open layout or do you like the quaint rooms of a victorian home? What type of street or neighborhood do you want? With lots of kids, a cul de sac, at the back of the sub, close to the bus stop?
What condition of home do you want? Are you a handyman and want a fixer upper? Or do you want to just move in and do nothing? How much updating do you want to do? How much money do you want to spend fixing it up to your specifications? How much money do you have in reserves?
What will you have to do immediately when you buy this home? What will make this house livable to you? What will be the total cost to do this?
THINGS TO CONSIDER
Schools , school district, meap scores. Do they meet your requirements? How close are neighborhod parks and recreation areas. Is there place of worship close by that you want to attend?
Commute time to work, and family and friends is important. Take a ride during rush hour and during off times. Visit the house at dark, and different times during the day. Stand outside and listen and look. By visiting the house during different times of the day you learn about the neighborhood.
Does the lot give value to the house, or is it a negative. Compare that to other values in the neighbor hood. Is it in a flood zone? What are the taxes? What is the Mileage rate? , What are the utility & electric bills?
What is the cost of homeowners insurance? Is the city you are buying in more expensive because of crime rates? Does a home warranty come with it?
What are the ages of major items roof, a/c, furnace, windows? Read the sellers disclosure carefully and ask questions you do not have answers to.
Always remember when and if you sell , how will others view your home . So think twice about homes with only 2 bedrooms, with small square footage, on or close to main roads, with no basement or garage. Think now about resale when you are buying. It will make you a smarter buyer.
What stays with the house? What goes?
There is no perfect home. You most likely will never find a home that has absolutely everything that you want and need. What you need to do is to make a list of what you want. What you must have and what you would like to have. My job is to help you find the home that suits you best at a good value. A home that you want, that you love, and that meets as many of your expectations as possible. We do find homes that have everything some people want, sometimes we even find homes that are beyond the expectation of what you want. I want to help you find a home that you will love to live in, have a place that great memories will come from, and that you can spend years with family and friends enjoying life. That is what is important.
Finally have Russ Ravary go over all the solds in the area and compare what you are buying to what has sold in the sub, in the area, and in the city. Be a smart buyer!
Good luck on house hunting. Give me a call if you are looking in the metro Detroit area!
Live today as if there is no tomorrow.
Russ Ravary
*Choose a lender and get pre-approved - take in your w-2s, your asset statements, your paystubs. Have your lender go over your credit score, ask questions about your credit report. Even if you have imperfect credit I have tips on how to raise your credit score. *Go over your mortgage options. Ask your lender about the different type of loans, one may be better suited for you than another. You may not like risk and want a fixed loan whereas some people would rather have a lower payment and take the risk of the rate going up. Ask about FHA Loans, biweekly programs, ARM loans, no money down loans, and buying points. *Sit down or call Russ Ravary and tell him what you are looking for in a home, what cities, what specifications. *Have Russ Ravary your realtor send you emails of all homes that meet your needs and in your price range. *Set up a time so Russ can take you out and show you homes that meet your needs and price. *Shop close to your price limit.
WHAT ARE YOUR NEEDS
What city do you want to live in? What subdivision? Do you want to be close to the expressways or downtown? How far is it from work, from family, from friends?
What size of home do you want? How many Square feet?
How many of Bedrooms , How many of bathrooms, kitchen, basement, library, study, great room, family room, formal dining room, study, master bedroom, closet space.
Fenced or open yard, pool, or community pool, how many car garage.? Is privacy important to you. Do you want mature trees?What style of house? Tudor, colonial, ranch, cape cod? How many stories? Don't want to walk stairs? Need a first floor laundry? Want all the bedrooms on the same floor? How old of a home would you like? Do you want the character of an old home or do you want a home less than 5 years old? What type of floor plan do you want? An open layout or do you like the quaint rooms of a victorian home? What type of street or neighborhood do you want? With lots of kids, a cul de sac, at the back of the sub, close to the bus stop?
What condition of home do you want? Are you a handyman and want a fixer upper? Or do you want to just move in and do nothing? How much updating do you want to do? How much money do you want to spend fixing it up to your specifications? How much money do you have in reserves?
What will you have to do immediately when you buy this home? What will make this house livable to you? What will be the total cost to do this?
THINGS TO CONSIDER
Schools , school district, meap scores. Do they meet your requirements? How close are neighborhod parks and recreation areas. Is there place of worship close by that you want to attend?
Commute time to work, and family and friends is important. Take a ride during rush hour and during off times. Visit the house at dark, and different times during the day. Stand outside and listen and look. By visiting the house during different times of the day you learn about the neighborhood.
Does the lot give value to the house, or is it a negative. Compare that to other values in the neighbor hood. Is it in a flood zone? What are the taxes? What is the Mileage rate? , What are the utility & electric bills?
What is the cost of homeowners insurance? Is the city you are buying in more expensive because of crime rates? Does a home warranty come with it?
What are the ages of major items roof, a/c, furnace, windows? Read the sellers disclosure carefully and ask questions you do not have answers to.
Always remember when and if you sell , how will others view your home . So think twice about homes with only 2 bedrooms, with small square footage, on or close to main roads, with no basement or garage. Think now about resale when you are buying. It will make you a smarter buyer.
What stays with the house? What goes?
There is no perfect home. You most likely will never find a home that has absolutely everything that you want and need. What you need to do is to make a list of what you want. What you must have and what you would like to have. My job is to help you find the home that suits you best at a good value. A home that you want, that you love, and that meets as many of your expectations as possible. We do find homes that have everything some people want, sometimes we even find homes that are beyond the expectation of what you want. I want to help you find a home that you will love to live in, have a place that great memories will come from, and that you can spend years with family and friends enjoying life. That is what is important.
Finally have Russ Ravary go over all the solds in the area and compare what you are buying to what has sold in the sub, in the area, and in the city. Be a smart buyer!
Good luck on house hunting. Give me a call if you are looking in the metro Detroit area!
Live today as if there is no tomorrow.
Russ Ravary
Sunday, May 13, 2007
Bargain homes
How do you know if you are getting a bargain in a home right now? It is pretty easy to find out if the home you are buying is a bargain. Ask your real estate agent to pull all the comparables in the area. A comparable is a home that is very similar in size and style as the house you are buying. For example you only compare ranch to ranch and colonial to colonials. You should never have to compare a ranch to a colonial.
Some of the basic rules of appraising is that you look for a similar style of home with roughly the same features and approximately the same square footage within a square mile of the existing property without crossing over any main roads, or railroad tracks. And they should have sold within the last six months. Houses that have sold over six months ago may not be a good comparable any more. Especially like the market we are having in 2007.
So your agent should first pull all the homes that have sold in the neighborhood, then they should pull all the homes that have sold within the square mile. They all should have sold within the last six months. Then the agent should pull the solds in the city if he can’t find enough comparables. Some agents don’t like to do this because all they care about is selling a home and not whether the home is worth the price. A good agent will do this for you.
You can then take a look at all the solds and see how the price of the house you are buying compares to the sold homes. Look at the square footage and the features to be able to compare apples to apples. This is how you tell whether the home you are buying is worth it. If you are looking to buy a Metro Detroit home and want an real estate agent to look out for you email me from my website www.russravary.com
Some of the basic rules of appraising is that you look for a similar style of home with roughly the same features and approximately the same square footage within a square mile of the existing property without crossing over any main roads, or railroad tracks. And they should have sold within the last six months. Houses that have sold over six months ago may not be a good comparable any more. Especially like the market we are having in 2007.
So your agent should first pull all the homes that have sold in the neighborhood, then they should pull all the homes that have sold within the square mile. They all should have sold within the last six months. Then the agent should pull the solds in the city if he can’t find enough comparables. Some agents don’t like to do this because all they care about is selling a home and not whether the home is worth the price. A good agent will do this for you.
You can then take a look at all the solds and see how the price of the house you are buying compares to the sold homes. Look at the square footage and the features to be able to compare apples to apples. This is how you tell whether the home you are buying is worth it. If you are looking to buy a Metro Detroit home and want an real estate agent to look out for you email me from my website www.russravary.com
Subscribe to:
Posts (Atom)