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
Sunday, July 1, 2007
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
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