Great Lakes – Great Homes

Another promotion this month!

May is National BBQ Month, so if you list your home with me during the month of May (6 months minimum listing), or if you write an accepted offer during the month of May and your sale closes,  I will reward you with this awesome Craftsman BBQ Tool Set!

I can attest from personal experience that these are good quality BBQ tools – my husband has a set.  They’re heavy-duty stainless steel with the familiar Craftsman  tool-style grips that feel comfortable and familiar in your hand.

See me for details!

Some homeowners choose to list their rental property with real estate agents instead of handling the details and duties of locating prospective tenants on their own.

Rental homes in the Downriver and Monroe County area are very much in demand right now.  Many families have lost their homes to foreclosure or sold their last home in a short sale, preventing them from obtaining a new mortgage for a couple of years.   Often those families have acquired possessions that don’t fit into an apartment lifestyle , have pets that need yards, don’t want to live in an apartment building, etc.

Be prepared to make compromises if you need to find a rental home.   Rental prices for homes are typically higher than apartment or condo rentals because the demand is higher.  The more desirable the area, the higher the rental amount.

Investors who have purchased homes with the intention of turning them into income properties are looking for the  bargains – which usually means the homes are small.  Less square footage means lower costs to rehab or replace.  There are a lot of 2 bedroom homes for rent out there.  There are quite a few 3 bedrooms, but it’s difficult to find a 4-bedroom home or larger.   Living conditions for your family may get a bit cozy for a few years.

Not all landlords accept pets, even if there is a yard.   I’m a pet owner and was a renter for many years until we purchased our home.  Our pets are part of our family – where we go, they go.  We had to make a few sacrifices over the years such as give up the nicer or more affordable rental option in favor of the one that allowed us to keep our pets.   I understand how pets are a part of the family.  However, unless it’s a service pet we have to follow the landlord’s guidelines.

Probably every rental I’ve encountered in my real estate career requires some type of credit report or rental history.  I believe that most landlords understand that most people don’t have perfect credit.  After all, if you had great credit you’d probably be buying a house instead of renting one.  However, if your credit history isn’t the best you should at least have a good rental history or previous rental references that can be verified.

Finally, be prepared for low rental inventory.  Certain communities (Dearborn, Dearborn Heights, Lincoln Park or Taylor) have more rental inventory, and therefore lower rental prices than other area cities such as Trenton, Woodhaven, Huron Township or Southgate – where you’d typically expect to find higher rental prices.

What’s your target move-in date?   Are you trying to time your home purchase with the end of a lease term?   Were you hoping to be settled in before the start of school?

When you begin working with a real estate agent, you should discuss your expectations and plans so everyone knows what to expect.  Buying a home takes a little planning and preparation first.  The housing market moves quickly, especially if the home has good features and is priced correctly.

Most people want to immediately jump into the house hunting process by setting up showings.  Sounds fun, but it could actually do more harm than good.    What if you find “The Perfect House” before you’ve been preapproved?  You’re not ready to buy it.  Unfortunately, the next family viewing the home is…  and they make an offer.  The seller’s not going to wait for you to come around – they’re taking the offer.  If you’re not ready to buy right now, most of the houses you see will be gone when you decide you’re ready.

Suppose you discover during the preapproval process that you’re not quite ready to buy yet?  Perhaps you need a couple of months to raise your credit score or save up more money for closing costs.  The right time to start touring houses is AFTER you’ve been preapproved.

Next,  you’ll need to  figure out when you want to close on your next home.    Here’s a way to establish a buying timeline to avoid stress:  Pick a target closing date and work backward.

• Establish your  “drop dead date” - the final day you can close in order to meet your timeline.  For purposes of our example, let’s say we’re timing a move to beat the start of a new school year.  August 16th will give us enough time to move in, unpack, do a little decorating, and explore the neighborhood before starting school.
• Add  2 weeks to cover any unplanned  last-minute delays to closing.  It happens, and you want the home buying process to be non-stressful.   Our new “FIRM” closing deadline is August 2nd.
•  The next  step depends on what kind of financing you plan to use to purchase your home.  The underwriting process (if you’re using a mortgage to purchase) can take as little as 3 weeks or as long as 6-8.  Each mortgage loan is going to be different, but all mortgage lenders must meet certain requirements and guidelines.
  • Paying Cash?  That makes it easy – add 2 weeks to your timeline.
  • Conventional loan?  This should add only 3-5 weeks for  underwriting.
  • FHA or VA loan?  These take a bit longer – add 6-8 weeks  for underwriting.

Let’s say we’re using a FHA loan – that means we have to submit an accepted offer to the bank no later than June 7th.

• Once you find a house and make an offer, expect to add another week for your home inspection period, and another week on top of that to get paperwork signed and returned.

Therefore, if you plan to move in by  August 16th you should write your offer by May 24th – around Memorial Day!

How long do you plan on looking at homes?   Let’s say it takes you 3-4 weeks to  tour some properties – you should have your written preapproval letter in hand by the end of April.

Using this backward timeline, I estimate it should take about 4 months for FHA buyers, about 3 months for Conventional buyers, and about 2.5 months for cash buyers  to find, offer and close on a home.

Gibraltar is a very unique waterfront community.  The City’s size is approximately 3.9 square miles, with approximately 2.5 miles of water frontage on the Detroit river and a network of man-made canals.  The unique canal feature of this community give many homeowners the opportunity to both live and play on the water.  During warmer months, boating and fishing are favorite resident activities.

The earliest area map refers to the area as Chenel de la Presque Isle.  The French referred to the area by several names, most likely influenced by translations of Indian names.  They called it La Roche Debout (standing or upright rock), Point AuRoche, or Gros Roche.  It would be natural for an Englishman to translate this to Gibraltar which was, as far as the Englishmen were concerned, the greatest rock of all.

Early spellings indicated the name was originally ‘Gibralter.’  The name was officially changed to the present spelling in 1900.

The village was originally part of Brownstown Township, and was originally settled in 1830 by farmers, with the principal business interest being a shipyard.

By 1953, it was decided to incorporate into a village. The City Seal was officially adopted on February 14, 1955.

Today, the City has a significant number of natural resources, including a network of more than five miles of canals, wetlands and streams. The Detroit River International Wildlife Refuge – Humbug Marsh is in the northern portion of the City and Lake Erie Metropark to the south. The canals bisect the City and its four islands: Hall, Edmund, Main and Horse.  The mainland portion of the City is a mix of commercial space and residential units.

Visit the website at www.cityofgibraltar.net.

If you are considering living in Gibraltar and would like to know more about available homes for sale – both on and off the water – give me a call!

RE/MAX was founded in 1973 by David and Gail Liniger in Denver, Colorado.  This year RE/MAX is celebrating its 40th anniversary in the real estate business.

RE/MAX, LLC is a privately owned company still based in Denver, Colorado and is still lead by its founders.  The RE/MAX system is based on attracting productive agents and providing them with valuable support, incredible brand awareness, educational opportunities, and other competitive advantages.

Upset with the bad name that poorly trained novices were giving the real estate profession, Dave foresaw a company where buyers and sellers could walk into any office in any market, confident they would receive the level of professional service that a transaction of such magnitude demands.

That basic concept has enabled RE/MAX to grow into one the most productive organizations the industry has seen.  RE/MAX agents on average have more sales experience than other agents in the industry.  According to the 2012 REAL Trends 500 report, RE/MAX agents outsell those from all other real estate franchises in comparison of the largest real estate brokerages.

RE/MAX agents also lead the industry in professional designations, which denote additional training in working with buyers and sellers in various needs.

Today, the RE/MAX network has nearly 90,000 agents and more than 6,000 offices in over 85 countries.

RE/MAX is the most recognized name in real estate.  When consumers find real estate online, “remax” is the most used search term among real estate brokerages (source:  Hitwise for 2011).    The RE/MAX Hot Air Balloon fleet is the largest corporate balloon fleet in the world.

Although RE/MAX LLC owns several of its own regional franchises, most RE/MAX offices are independently owned and operated.  For four consecutive years, RE/MAX has ranked as the top real estate company in the Franchise Times Top 200 survey.

More about my office, RE/MAX Masters, Inc. in a future post.

Here are some numbers and resources that you might find useful…

Michigan State Housing Development Authority (MSHDA)

Provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing .  Advice and guidance in preventing foreclosure, purchasing a home, fixing up the neighborhood, and helping to build affordable housing.   http://www.michigan.gov/mshda

Search for a HUD Home

Buyers can search for a HUD-listed property in Michigan or any other state.  Narrow your search by price, county, city, zip code, or enter the street name if you’re looking for a particular property; all listings shown are current and active properties.  HUD does the FHA appraisal for you and provides a property condition report.  http://www.hudhomestore.com

Search for a Fannie Mae Foreclosed Property

Search for actively listed foreclosed properties currently for sale through Fannie Mae.  Searchable by state, county, city, zip code, or price.  Learn about HomePath Financing or HomePath Renovation Financing for Fannie Mae properties.   http://www.homepath.com

Search for a Freddie Mac Foreclosed Property

Search for available homes offered through Freddie Mac’s HomeSteps program.  Freddie Mac occasionally offers special programs to buyers such as a Home Warranty at closing (up to a $500 value).  They may also offer HomeSteps Financing on certain homes.  http://www.homesteps.com.

My house is located across the street from a small creek that sees a lot of action throughout the year.  That’s one of the great things about living in Michigan – four separate seasons provide lots of variety in both the view and the wildlife.

Throughout the year we have a highly active squirrel population surrounding our property.  Lots of mature trees provide the acorns, berries and whatever food they require throughout the year.  In the summer and fall we have lots of cardinals, robins, wrens, etc.

Last year the creek level was very low – mostly just the mud bottom for many weeks – and I had the rare pleasure of seeing a red fox for a few days.  The fox probably took advantage of the low water level to explore the creek and search for food.    When the water level is high the creek has crayfish and sometimes the occasional small fish.

Groundhogs or woodchucks live in the area, along with skunks as evidenced by the fragrant reminder they leave for us in the evenings.  I tell my dogs to leave the ‘black kitties’ alone, but all they hear is “mwah mwah mwah mwha KITTIES!!! mwah mwah mwah.”

Spring is bunny making season, and the rabbits are all over the place right now.

There’s a large wood duck nesting box attached to a tree across the street, but for the past few years the squirrels have claimed it as an acorn storage warehouse.   Until this week.

My German Shorthaired Pointer is going berserk because at least one family of Wood Ducks has picked our neighborhood as their new home.  Don’t worry, the ducks are safe – the Pointer can’t get to them and the nesting box is very high off the ground.

I’m so excited to see these beautiful wood ducks for the next few weeks.  The female looked like she’s adding nesting materials to the box, and according to the Michigan Department of Natural Resources, the gestation period for wood ducks is about 28-30 days, and the females lay about 12 eggs.   I hope I get to see them before they migrate.     I’ve read these ducks are really timid, but if I happen to get any photos over the next few weeks I’ll post them.

UPDATE as of April 22, 2013:  Sadly, it appears the squirrels came back and evicted the wood ducks from their acorn storage facility.  We found one broken shell outside the box on the ground, and all the wood ducks seem to have disappeared from the area.    There’s still a mallard family that hangs out near our yard every spring, but it appears the wood ducks have moved elsewhere.    Maybe next year… 

When real property is sold in the State of Michigan, the state imposes a transfer tax at closing.    The tax is paid to both the State and the County in which the property is located.

The tax is imposed on the Seller, although certain sellers will claim exemption from having to pay this tax – particularly  Federal entities such as HUD, Fannie Mae and Freddie Mac.  There’s been a bit of controversy lately as some sellers claiming to be exempt from paying the tax have been requiring the buyer to pay the tax at closing .  More about this in a future post…

Other exemptions may exist such as properties under $100, properties sold in Michigan but located outside of the state, properties transferred to certain family members, etc.   Your Title Company should be able to determine if your transaction qualifies for an exemption.

As of this writing, the current transfer tax rate in Michigan is:

• County Tax:  $ .55 for each $500 or fraction thereof
• State Tax:  $3.75 for each $500 or fraction thereof

I just find it easier to remember $8.60 per $1000.  So, if you sold a home for $150,000, your tax amount due at closing (and included in your closing costs) would be $1,290.00

Finally, with our current economy’s lower property values due to our struggling economy, some homeowners may have been able to take advantage of an exemption contained within the Michigan Transfer Tax Act.  If a seller meets the criteria, they would be exempt from paying the transfer tax.

The Criteria:

1. Property must be classified as a principal residence – classified as homestead property
2. The property’s SEV for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the seller acquired the property, and
3. The Property cannot be transferred for consideration exceeding its “true cash value” for the year of the transfer.

Qualified sellers may have up to 4 years from the transfer date to file for an exemption and may be entitled to a refund of the paid State Real Estate Transfer Tax (SRETT).  Note that there are no refunds for County taxes).

To determine if you are eligible, check with the Title Company that handled your closing.

Some buyers may write an offer on a property and request the seller provide a one-year home warranty .  Some sellers offer to provide the home warranty as a selling bonus, and Freddie Mac’s HomeSteps program currently offers a $500 credit towards the purchase of a home warranty at closing, providing the buyer requests the credit in writing with their offer.

New or existing homeowners can also purchase a home warranty to protect their home system components and appliances.    RE/MAX Masters has partnered with American Home Shield  to offer homeowners choices in home protection plans. 

A home protection plan, also known as a home warranty, is a service contract that protects homeowners against the cost of unexpected repairs or replacement of their major systems such as a furnace, air conditioning system, electrical system, plumbing, ceiling fans, smoke detectors, etc.  It also covers your large appliances beyond the manufacturer’s warranty period, including refrigerator, stove, washer, dryer, garage door openers, etc.

The American Home Shield plan is flexible, with choices to provide a range of coverage options and allows for add-ons such as a pool, spa, water softener or septic pump.

Visit American Home Shield at www.ahs.com to learn more, or click HERE for a brochure.

If you are a DTE Energy customer in the Downriver or Monroe County area, you may also qualify for DTE Energy’s Home Protection Plus service plan.   There’s  a choice of plans providing a range of coverage, with billing charges added to your monthly DTE Energy bill.   Visit DTE Energy Services for more information at www.hppservices.com.

Consumer’s Energy also offers a similar plan for their customers.  Visit www.applianceserviceplan.com for info on Consumer’s Energy appliance service plan for Michigan customers.

If you are having trouble keeping your home and are worried about foreclosure you should check to see if you qualify for the Home Affordable Foreclosure Alternatives (HAFA) Program.    HAFA is available for mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac or serviced by a HAMP participating mortgage servicer.

HAFA provides two options for transitioning out of your mortgage:  a short sale or a Deed-In-Lieu (DIL) of foreclosure.   In a short sale, the lender allows you to sell your home for an amount that falls “short” of the amount you still owe.   In a Deed-in-Lieu, the mortgage company allows you to give the title back, transferring ownership back to them.   A Deed-in-Lieu has also been called a “friendly foreclosure”.

Unlike traditional short sales,

• A HAFA short sale automatically releases you from your mortgage debt after selling the property; you will not be responsible for repaying a deficiency balance because the deficiency is guaranteed to be waived by the seller.
• HAFA has less impact on your credit than a foreclosure or a traditional short sale.
• HAFA may provide up to $3000 at closing for relocation assistance.

To be eligible for HAFA you must meet certain criteria (contact your mortgage servicer to see if you quality):

• You must have a documented financial hardship
• You have not purchased  a new house within the past 12 months
• Your first mortgage is less than $729,750
• You obtained your mortgage on or before January 1, 2009
• You must not have been convicted  within 10 years of a felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

The sooner you seek help, the more options will be available for you.

Visit the MakingHomeAffordable website to learn more, find out if you qualify, and get the forms needed to get started.

If you don’t quality for the HAFA program and need to sell your home using a traditional short sale, please let me know how I can help.

I’m running a special promotion for Buyers and Sellers for the month of April – A $50 Gift Card that can be used at Lowe’s or your favorite garden supply store!

If you are a SELLER and you list your home with me during the month of April,  I will provide a $50 gift card for updating your curb appeal with flowers and plants when we sign the listing agreement.    Add some hanging baskets or just pick up a flat of flowers or a couple of houseplants to brighten your home.   Ask me about the details/restrictions etc.

If you are a BUYER you can also earn a $50 Gift Card for Lowe’s at the closing table if your accepted offer is written between April 1, 2013 to April 30, 2013.   Brighten up your new home with flowers, plant a garden, etc.

See Rhonda Wright for rules and restrictions, etc.  Recipients must be one of my clients, and you can use another local garden center if preferred.

Unfortunately, mortgage foreclosure isn’t the only way a homeowner may be in danger of losing their homes.   Unpaid taxes can also lead to the loss of your property.

In Michigan, the property tax foreclosure process entails a three- year process.  Parcels are forfeited to the county treasurers when real property taxes are in the second year of delinquency.    According to the Michigan Department of Treasury, real property taxes which remain unpaid as of March 31st in the third year of delinquency are foreclosed upon.

Most homeowners who carry a mortgage will have their property taxes and homeowner’s insurance escrowed with their monthly payment.  1/12th of their taxes and insurance are added to the monthly payment, held in an escrow account by the mortgage servicer who makes the payments on the homeowner’s behalf throughout the year.

If you are having trouble making mortgage payments, your tax escrow account may not have enough money available to make your property tax payment on your behalf.

If you are unable to pay your delinquent property taxes, your county treasurer may be able to help by providing suggestions and resources about emergency loans or grants, sources of legal assistance, budgeting help, partial payment plans, special resources for veterans and seniors, and more.

Radon is considered a health hazard by the Environmental Protection Agency (EPA).  It’s a cancer-causing, radioactive gas that can’t be seen, smelled or tasted.    It is estimated to cause thousands of deaths each year.  Radon is found all over the United States.  It can be found in office buildings, schools, and homes.

According to the Map of Radon Zones for Michigan as published HERE by the EPA, Wayne and Macomb Counties are in a “Low Potential” zone, while Monroe, Oakland and Livingston Counties are considered to be in a “Moderate Potential” zone.   Washtenaw, Lenewee, Jackson and Hillsdale counties are considered to be “Highest Potential” zones.

Radon in the home can be easily detected through inexpensive and easy testing.  While Radon testing is not a commonly requested inspection item for home buyers in Monroe and Wayne counties, a radon test can easily be performed during the usual 5-10 day home inspection periods.   If you are concerned about the potential of Radon gas in a home, ask the Home Inspector of your choice about having the test performed during the home inspection period.

If an unacceptable level of Radon is found it in a home, DO NOT LET THIS PREVENT YOU FROM BUYING THE HOME!    Radon reduction systems work well and are not too costly.  Some radon reduction systems can reduce Radon levels in the home by 99%.  If the seller will not install a Radon reduction system you can easily and inexpensively have this done yourself after the purchase.

If you are concerned about Radon levels in your home you can get more information by visiting the EPA at www.epa.gov/radon or the Michigan Department of Environmental Quality (DEQ).

The Huron-Clinton Metropolitan Authority, or Metroparks, is a regional special park district encompassing Wayne, Oakland, Macomb, Washtenaw and Livingston counties.

Sanctioned by the Michigan State Legislature in Act No. 147 of the Public Acts of 1939, and approved in 1940 by residents of the five counties, funding for the Metroparks became available in 1942.

Currently, 13 Metroparks covering almost 24,000 acres, serve about 9.5 million visitors annually.  The parks provide a variety of outdoor recreational and educational activities year round in safe, clean environments.

Daily admission is $5 per vehicle, but I fully recommend buying an annual vehicle pass for only $25 per vehicle.  This admission price will give you a vehicle sticker that can be used to gain admission to any of the 13 area Metroparks.

The Metroparks hold special events throughout the year – fireworks shows in July, car shows in the summer, golf tournaments, concerts, races, festivals and more.

Each Metropark features a unique feature that makes it worthwhile to visit all twelve.  For example, the Downriver area features Lake Erie Metropark in the Rockwood area with it’s summer fireworks display and the “Great Wave Pool”, plus beautiful Lake Erie access and views.  Oakwoods Metropark features a nature center with a 700-gallon aquatic tank.  Willow Metropark has a refreshing pool – and was my favorite summer hangout when I was a kid.   The Lower Huron Metropark has Turtle Cove with a lazy river, water slides, dumping bucket and more.  Huron Meadows features golfing on beautiful green fairways.

Come see what’s available near you at www.metroparks.com.

I’ve seen inside lots of houses.  Let’s just say some are memorable for the wrong reasons.   After previewing six homes in a row, sometimes the only one that stands out is the place with the orange walls and black ceiling.

Deciding what color to paint your walls is a personal decision based on your tastes, mood and sense of design.   Since you’re going to be living there, no choice is wrong (until you get tired of the color and want to change it up).    As long as you are happy, the color is perfect.

TIP:  If you are thinking of putting your home on the market, it might be a good idea to repaint the rooms where you’ve made bold color choices.  A neutral color (white, off-white or something beige) might sound boring to you, but it may help potential buyers envision themselves in your home.

If you are looking for color inspiration, check out Olympic Paint’s free ColorClix software, or download the app for your iPhone, Android or Windows Phone.   You can upload your own photo and let the app select paint samples that most closely match the image colors and display complementary colors, with a full spectrum of shades and hues.  Visit Olympic’s website at www.olympic.com/colorclix.