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Avoid Common Real Estate Scams - Fake Lender Terms - Stealing You Home or Land

by Tom Stachler,ABR,CDPE - Group One Realty Team

Scams seem to be common across all facets of life, and real estate is no exception. Real estate scams target Home buyers, sellers, and owners alike, and they're fairly common. While no one wants to be the victim of a scam, it's possible if you're not aware of the tactics scam artists employ. Read on for some of the most common scams aimed at homeowners today.

Two men discussing the loan of a home.

Loan Modification Scams

When it comes to modifying your mortgage loan, be wary of anyone offering to do it that you don't directly contact. Loan modification scams occur when a scammer offers to negotiate with a homeowner's lender to lower the owner's interest rate for a certain fee. Often, scammers will guarantee results, even going so far as to offer a "money-back guarantee." The scam results in the homeowner paying the fee, only to receive no modification and possibly end up behind on mortgage payments and/or short on funds. There are a number of online resources that identify companies that have been or are being sued by the Federal Trade Commission for their loan modification businesses.

A woman looking at a paper document titled CONTRACT.

Deed Theft

Always be cautious of any actions regarding the deed of your property. Deed theft scams involve the fraudulent transfer of a home or property to a third party. Deed theft can come in different forms:

  • homeowners get tricked into signing over their deed via a fake document
  • homeowners may be aware they're signing over the title of their property but only temporarily while they seek to refinance or take out a second mortgage; they eventually realize they've signed over their property outright

If you're contemplating anything that may modify your current mortgage, make sure you ask questions and read the fine print before you sign anything, and always ensure you're working with a reputable company.

Impersonation Scams

Foreclosure and other financial issues related to home ownership can make people desperate when trying to avoid losing one's home. Impersonation scams occur when homeowners are tricked into thinking they're hiring a company to prevent their homes from falling into foreclosure. Homeowners will pay the company hundreds of dollars a month to prevent foreclosure, only to find out later that their homes are being foreclosed on and the company pocketed the cash. If you're struggling with your mortgage payments, the best first step is to contact your lender and ask about a new repayment schedule. Be wary of companies touting something that may seem too good to be true.

A small house toy next to a paper contract and a calculator.

Mortgage Scams

There are predators in every industry, and the mortgage loan lending industry is no different. Mortgage loan scams abound, so be aware! Scammers will:

  • advertise low-interest rates that aren't actually available
  • forget to inform buyers of high closing costs associated with their mortgage loans
  • steer buyers toward a more expensive loan with higher closing costs although they qualify for a loan with better terms
  • offer adjustable-rate mortgages but fail to inform buyers that the rates can increase or fluctuate in the future
  • and even offer negative-amortization loans (these loans are illegal in most of the U.S. and result in a loan's principal balance increasing over time rather than decreasing)

If you or someone you know is thinking of Buying a home and looking at mortgages, know the signs of a possible scam and look up company reviews before you take any next steps.

A couple looking at documents with concerned looks on their faces.

Fake Lawsuits & Forensic Audit Scams

When you buy a home, you want to believe you're not going to get taken advantage of, but many fall prey to dishonest people targeting homeowners. Fake lawsuits are those lawsuits that promise to 'sue greedy banks' on behalf of homeowners. Many times, the lawsuits are fake, and the homeowner can be out thousands of dollars and many month's worth of time. Be wary of anyone touting a lawsuit, especially when your home or mortgage are concerned.

Another scam not easy to recognize is a forensic audit scam. This scam is focused on making the homeowner believe there are flaws in the mortgage document that could lead to an affordable modification or even nullify the mortgage loan. When it comes to this scam, check the background and references of anyone claiming to be a forensic loan 'auditor,' 'mortgage loan auditor,' or 'foreclosure prevention auditor.'

There will always be people looking to take advantage of others, especially when economies are struggling and people are desperate. If you're a homeowner, don't fall prey to a scam. Ask as many questions as possible. Research everything you can. Talk to your agent for more information. If you're applying for a mortgage loan, get multiple quotes. And remember, if something seems too good to be true, it probably is.

 

As your agent, I am your valuable asset in all things real estate. Reach out to me with any questions you may have about buying or selling. If you're getting contacted about things that seem too good to be true, reach out to me for more information: 734-996-0000 You can also contact me via my website: www.TheRealtyTour.com  Don't hesitate to reach out! 

 

Tom Stachler is a real estate broker working in the Saline, Ann Arbor, Ypsilanti, Milan, Dexter and surrounding markets.  Listing and selling homes, condos, commercial spaces, income properties and other style houses. Experience with over 30 years in the business.  

Understand Commercial Income Property for Investments

by Tom Stachler,ABR,CDPE - Group One Realty Team

As a real estate broker, I often get asked about the different types of investment and commercial properties available in the market. To help my clients make informed decisions, I've put together a quick overview of some of the most popular options, as well as a simple explanation of three key metrics used to evaluate real estate investments: Gross Rent Multiplier (GRM), Capitalization Rate (Cap Rate), and Return on Investment (ROI).

  1. Office Buildings: These listings are typically leased out to office tenants, and are commonly found in central business districts.

  2. Retail Properties: Retail properties can be anything from strip malls to large shopping centers, and are leased out to retail tenants.

  3. Industrial Properties: These properties are used for manufacturing, warehousing, or distribution and are typically larger than other types of commercial properties.

  4. Income Properties: These properties are made up of several units that are rented out to individual tenants.

GRM is calculated by dividing the property's price by its annual rental income. It provides a quick way to compare similar properties, and helps to identify properties that are over or undervalued.

Cap Rate is calculated by dividing the property's net operating income by its purchase price. It provides a snapshot of the property's expected return on investment, and helps investors to determine whether a property is a good investment opportunity.

ROI, or Return on Investment, is a metric that measures the performance of an investment. It is calculated by dividing the investment's net profit by its cost, and is expressed as a percentage. It provides a clear picture of how much an investment has earned relative to its cost, and is a useful tool for comparing different investment options.

Understanding these metrics is crucial for making informed decisions when investing in commercial properties. As always, it's important to consult with a knowledgeable real estate professional to ensure you make the right choices for your investment portfolio.

In conclusion, as a real estate broker with 30 years of experience, I bring a wealth of knowledge and expertise to the table. My experience as a property manager has given me a deep understanding of the complexities of commercial properties, and I use this knowledge to help my clients make informed decisions when selling or purchasing properties. I have a proven track record of successfully navigating the real estate market, and I have the skills and resources necessary to help my clients achieve their goals. Whether you're looking to sell a commercial property, purchase a new investment, or simply need advice on the current market, I am here to help. With my extensive experience and comprehensive knowledge of the industry, I can provide you with the guidance and support you need to make informed decisions and achieve your goals.

 

Saving Energy and Money with High-Tech Solar and Wind Power Home Improvements

by Tom Stachler,ABR,CDPE - Group One Realty Team

"Saving Energy and Money with High-Tech Solar and Wind Power Home Improvements in Saline, Michigan by Tom Stachler, Real Estate Broker"

As a real estate broker in the Saline, Michigan area, I often receive questions about home improvements that can save homeowners money on their energy bills. With the advancements in renewable energy technology, solar and wind power have become increasingly popular and affordable options for homeowners. Here's what you need to know about high-tech solar and wind power home improvements in Washtenaw county.

  1. Solar panels: Solar panels are a great way to reduce your energy bills by generating electricity from the sun. With the advancements in solar panel technology, they are now more efficient and affordable than ever before. Installing a solar panel system can greatly reduce your energy costs and even allow you to sell excess electricity back to the grid.

  2. Wind turbines: If you have a large property in Saline, a wind turbine can be a great way to generate electricity from the wind. While wind turbines have traditionally been large and expensive, advances in technology have made them more accessible for homeowners. A wind turbine can generate enough electricity to power your entire home and even sell excess electricity back to the grid.

  3. Energy storage systems: Energy storage systems, from companies such as Tesla who make battery banks, are essential for homeowners who want to generate electricity from renewable sources. They store excess energy generated by solar panels or wind turbines for use when it's needed, reducing the amount of electricity you need to purchase from the grid.

  4. Smart home systems: Smart home systems, such as smart thermostats, can help you manage your energy usage more efficiently. They allow you to control your home's temperature, lighting, and appliances from your phone, reducing your energy usage and saving you money on your bills.

  5. Green roofing: Green roofing, or the installation of plants and vegetation on a building's roof, can provide insulation and reduce your home's energy usage. In addition to saving you money on your energy bills, green roofing also provides a number of environmental benefits, such as reducing stormwater runoff and improving air quality.

By implementing these high-tech solar and wind power home improvements, Saline and Ann Arbor homeowners can save money on their energy bills while reducing their impact on the environment. If you have any questions or need help finding a professional to assist with these upgrades, don't hesitate to contact me.

 

Maximizing Energy Efficiency in Your Saline, Michigan Real Estate Property by Tom Stachler, Realty Broker

by Tom Stachler,ABR,CDPE - Group One Realty Team

"Maximizing Energy Efficiency in Your Saline, Michigan Real Estate Property by Tom Stachler, Realty Broker"

As a realty broker in the Saline, Michigan area, I often advise homeowners on ways to save money on their energy bills. Improving energy efficiency in your Home not only saves you money, but also helps the environment and can increase the value of your property. Here are some simple steps you can take to maximize energy efficiency in your Saline home.

  1. Insulate your home: Adding insulation to your walls, attic, and floors can help keep warm air in during the winter and cool air in during the summer, reducing your energy costs.

  2. Upgrade to Energy Star appliances: Replacing your old appliances with Energy Star-rated ones can greatly reduce your energy usage and save you money on your monthly bills.

  3. Install a programmable thermostat: A programmable thermostat allows you to set your home's temperature at different times of the day, ensuring you're only using energy when you need it.

  4. Seal air leaks: Check for air leaks around doors, windows, and electrical outlets, and use caulk or weather stripping to seal them. This can prevent heated or cooled air from escaping and reduce your energy costs.

  5. Replace old windows: Old, single-paned windows can let a lot of heat escape in the winter and let heat in during the summer, driving up your energy costs. Replacing them with energy-efficient windows can save you money and improve the comfort of your home.

  6. Switch to LED light bulbs: LED light bulbs use far less energy than traditional incandescent bulbs and last much longer, saving you money on your energy bills and reducing your impact on the environment.

  7. Upgrade to a high-efficiency HVAC system: A high-efficiency heating and cooling system can greatly reduce your energy usage, saving you money and improving the comfort of your home.

By implementing these simple steps, you can maximize energy efficiency in your Saline, Michigan home and reduce your energy bills. If you have any questions or need help finding a professional to assist with these upgrades, don't hesitate to contact me

How Our Tech Helps You Buy or Sell a Home

by Tom Stachler,ABR,CDPE - Group One Realty Team

Using Modern Tech to Buy or Sell Real Estate


With much of the country mostly staying Home, it's not your typical spring homebuying season. 

You might think social distancing has made it difficult to meet with lenders, view properties and sign paperwork, but fortunately that's not the case. 

In fact, prospective buyers and sellers continue to move forward with their housing needs and doing so with safety in mind.

While the process may look a little different, modern technology is making it possible and, in some ways, more convenient.

So how does it work?

  • Virtual Open Houses and Showings: Facebook Live, HouseParty, FaceTime and Zoom are all being used to show properties. And many listings include a prerecorded tour of the home.
     
  • 3D Floor Plans, HD Videos and Interactive Walk-Throughs: Online tools make it easy to create interactive 3D walk-throughs, or our unique HD Videos and even allow for decor and furniture placement to give buyers a more lifelike feel of the space.
     
  • Electronic Signatures and Deed Filings: E-signing technology means there’s no need to meet in person to sign offers, contracts or any other paperwork needed in the process. 
     
  • Desktop and Drive-By Appraisals: If sellers are hesitant to have an appraiser visit their property in person, desktop and drive-by appraisals are a good alternative. These use city data, prior appraisals and comparable sales information to assess a home’s value. Homeowners can video chat with the appraiser to show them the interior and exterior elements of the property.

Curbside & Video Closings: E-signing technology means there’s no need to meet in person to sign most of the closing documents, or any other paperwork needed for closings though many lenders still want "wet signatures" prompting curbside or reserved closing rooms.  

 

So bottom line, the way we buy and sell homes may have changed for now, but it’s still an active and essential market. If you have any questions about making a move, please don’t hesitate to get in touch. Tom Stachler and his team are always on the cutting edge of technology and marketing success.  Check out this website for listings and more resources for the Dexter, Saline, Ann Arbor, Ypsilanti, Milan and surrounding home purchase or listings communities.  

 

How to Take Title - Different Forms of Real Estate Ownership

by Tom Stachler,ABR,CDPE - Group One Realty Team

5 Types of Property Ownership – Which Is Best for You?

 

A lot of focus is placed on acquiring assets and security by advancing your career and making wise financial investments. However, what is often overlooked is how these assets are titled and the effect on your financial situation.

Unforeseen complications can arise when you have properties and assets titled in ways that create conflict within a family (who gets what or how much) or supersede provisions you make in your will. Also, significant tax benefits can be gained – or lost – depending on the characterization of your property.

In order to avoid complication, it’s prudent to be familiar with the different classifications of ownership.

Forms of Property Ownership

1. Sole Ownership

Sole ownership occurs when a single person owns a complete interest in a property or asset. Ownership is conveyed from one person to another through transfer documents, or by the laws of intestate succession. If the owner passes away, his or her interest in the property or the asset is included in the estate. Estate taxes and probate fees could diminish the value of that property if no other planning has taken place.

One positive is that the beneficiary of the property receives a full step-up in basis value. This means there will be no capital gain to worry about if the heir sells the asset because the heir receives the property at current market value.

For example, if a child inherits his or her parents’ Home when the current market value is $500,000, that child’s tax basis in the property will be $500,000, even if the parents’ basis was only $250,000 (meaning that the house was bought for $250,000). In this way, the child avoids capital gains of $250,000 if he or she sells. That said, the current market value of the home is included in the value of the deceased’s estate.

2. Joint Tenancy

Joint tenancy is when two or more persons share equal, undivided interests in property. Joint tenancy is not limited to spouses – anyone can share joint interests, but there is a tax benefit when this arrangement is shared only between husband and wife (qualified joint tenancy). When an asset is owned by spouses, the value of the deceased spouse’s property passes to the surviving spouse with no probate and no tax consequences. This is similar to the process of joint tenancy with rights of survivorship (JTWROS).

A joint property interest cannot be passed through traditional documents, such as a trust or a will. If one owner dies, then the ownership interest passes directly to the surviving owner.

However, when the owners are not married, the entire value of the property is included in the deceased’s estate. In addition, the property must go through the probate process. This can catch people off guard, and underscores why you need to learn about the different forms of ownership.

It is intuitive to think that only the deceased’s share of the assets would be included in the estate, but this is not the case if the asset is held in joint tenancy. As a result, other ownership forms must be utilized to minimize taxes and avoid probate. If you are not married to the person with whom you are planning to share joint ownership of an asset, then joint tenancy is likely not the best type of ownership for the assets.

3. Joint Tenancy With Rights of Survivorship (JTWROS)

Another form of co-ownership of property is joint tenancy with rights of survivorship. Joint tenants also have an undivided right to the enjoyment of the property. When a joint tenant dies, that person’s interest passes on to the remaining joint owners. However, while a joint tenant is alive, he or she can transfer interest to another person.

For example, a father leaves a vacation home to his three children, Tom, Sara, and David, with the house under a JTWROS ownership status between them. Tom dies first, and the home is now owned by Sara and David completely and equally. Tom’s interest does not pass to any heirs. When Sara dies, David owns the vacation home completely. The ownership interest passes without going through probate.

There a few different tax scenarios in JTWROS. Using the above example, as each person passes, other owners receive a step-up in value only on the deceased’s portion of the property. So if the owners sell the property, they will still have capital gains on their portion of the asset. This can have serious consequences in situations where the surviving owners decide to sell the asset.

4. Tenancy in Common

Tenants in common own an undivided interest in property between two or more people. However, unlike other forms of joint ownership, these interests can be owned in different percentages.

A tenant in common can pass his or her interest to others with traditional documents. However, the interest does not pass on to the other owners by law – meaning, if three people own a vacation home as tenants in common and one owner dies, that person’s ownership interest does not automatically pass on to the other owners. In addition, the deceased’s interests do go through probate, unlike JTWROS. This can cause problems if the other owners wish to put the property up for sale, as they will not be able to do so until the probate process is complete.

Once probate is finished, taxes are handled in the following manner: The deceased’s interest in the property goes to his or her heirs, and the heirs receive that interest at a stepped-up basis, or current market value. The value of the deceased’s interest is included in his or her estate. If the property is sold, then taxes will be based on the entire value of the property, which means that even though the owners can apportion their percentage of profit/loss on their tax returns, the IRS can come after everyone if just one owner does not pay his or her portion of taxes on the gain.

 

5. Community Property

Currently, 10 states have community property laws: Alaska, Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington, and Wisconsin.

In a community property state, any assets or income obtained during a marriage are not owned solely by either spouse. It is considered part of the “community” of the marriage, and thus each spouse owns an equal share. Each spouse can choose to leave his or her share of the assets to one or more designated heirs upon death. There are no restrictions on how each spouse can give away his or her half of the community property (upon death), and there is no law requiring one person to leave his or her half to the surviving spouse.

For example, in his will, a remarried man could leave his part of the community property to his ex-wife, and there is nothing his current wife can do about it. However, if he wanted to convey ownership interest to his ex-wife or anyone else while he is still alive, he would need the consent of his current wife.

Or, if a man remarries in California, while he is alive he cannot transfer interest in his house or investments held jointly with his new spouse to his children mothered by his first wife. However, he can declare in his will to have his share transfer to his children when he dies. If his new wife does not want that to happen, she has little to no recourse to prevent it.

Moving to a new state that is not a community property state does not nullify the community property status, nor does separation. Legally, you are still married, and so the estranged spouse still has community property on any assets acquired. Divorce is the only thing that can sever any new assets from being included as community property.

Exceptions to the community property rules are property acquired prior to a new marriage (if in a community property state – this is separate property), property acquired as an individual prior to moving to a community property state, and property obtained via gift or inheritance during the marriage.

For estate purposes, the deceased’s share of community property is included in probate. If a stock portfolio is valued at $500,000, then $250,000 will be included in probate for the deceased spouse, though some states (such as California) have different rules.

The beneficiary of the property interest receives a stepped-up basis on that portion of the property. It is important to remember that the beneficiary can be chosen by the deceased – this is in contrast to joint tenancy (and JTWROS) under which the surviving joint tenant (or tenants) automatically inherit the interest of the deceased. As spouses, it is not necessary to write in a rights of survivorship clause.

Final Word

All too often, people do not understand the differences and ramifications of the various forms of ownership until it is too late to change them. For example, in an age where divorce rates are high and remarriage common, knowing that you are in a community property state is key. It’s also prudent to know which forms of property go through probate and which do not to avoid the complications and expense of probate. As you move down the road of life and build your assets, consult a professional to create a detailed, personalized plan that addresses your needs and eases the process of inheritance for your loved ones.

Do you own property? What type of ownership is it under?

-----------

Tom Stachler is a licensed Michigan Real Estate Broker selling property in the Saline, Ann Arbor, Ypsilanti, Dexter and surrounding communities.  Please reach out to us today for additional real estate resources or properties both Residential, Income, Vacant or commercial realty types.  

Seven Tiny Home Plans with European Style

by Tom Stachler,ABR,CDPE - Group One Realty Team

7 Tiny Home plans with a taste of European style

The best part of building your own house has to be determining right from the outset, the architectural style you most love to come home to. For many people, that ideal style is entirely European.
Echoing days gone past, adding character to the property with ornamental embellishments and making something sturdy to last out of stone; all hallmarks of a European-style build. All of these elements and more are included in our round-up of tasteful European-style tiny home plans.
 
1. English country cottage from ePlans.
At 581 square feet (54 square meters), this charming stone country cottage is reminiscent of Old World England. With a cozy open-plan living, dining and kitchen area complete with characterful niches and wide windows, the layout suits a couple perfectly. One double bedroom leads into a full bathroom and had access to additional storage space in the linen closet.
2. Diminutive Tudor-style cottage by Houseplans.
This delightful Tudor-style cottage comes in at 300 square feet (28 square meters) and suits a couple or downsizing single dweller. A completely open-plan room features a dinky kitchenette and a large walk-in closet for storage. The full-size bathroom is accessible off of the main room, which itself features a fireplace for cozy evenings. A small entrance porch is an architectural detail to add a whimsical feel to the cottage.
3. European stone house by Family Home Plans.
This floorplan measures 976 square feet (91 square meters), although there is the option to extend it with an additional upper floor, which adds 630 square feet (59 square meters) to the plan (and the expense)! Highly modifiable, the original floorplan comes with one double bedroom, a kitchen, bathroom, living room and dining room, as well as a spacious entry porch. You can add on another bedroom and a garage to the ground floor if required.
4. Traditional brick cottage by Houseplans.
At 566 square feet (53 square meters), this property has been designed to be affordable as well as energy efficient and eco-friendly. The standard features can be incorporated in a number of layouts to modify the plans as needed. This model shows an open-plan living, dining and kitchen area ideal for entertaining, as well as a double bedroom and an additional single bedroom. 
5. Stylish Mediterranean property from ePlans.
This gorgeous 972 square feet (90 square meters) property just sings of the Italian plains of Tuscany thanks to the creamy render and authentic looking terracotta tiled roof. An entrance foyer leads onto a central hallway, with open-plan living around the kitchen, living and dining areas. A fireplace bisects the space and there are storage closets and a laundry cupboard built-in. The double bedroom has access to a shower room, as well as built-in storage space for clothes.  
6. South Italian-style cottage from Houseplans.
This unique property calls to mind the houses in Puglia, Italy. With its conical roof and rounded walls, it brings a contemporary feel to the rustic inspiration for the design. Measuring 968 square feet (90 square meters), it is well suited for a couple. With a large, open-plan entertaining space combining the living, dining and kitchen areas, the house can be built on a basement foundation if needed. The plans include a laundry room, entrance foyer, single bay garage and a wall of curved windows. The bedroom has spacious walk-in closets and is adjacent to the full-size bathroom.
7. Victorian style townhouse from Family Home Plans .
At 940 square feet (87 square meters), this Victorian-inspired build is smart and functional. Ideal for a couple just starting out, or downsizing, the large double bedroom has large walk-in closets and is situated right next to the full bathroom. A central entrance hallway can be modified to include stairs to a basement foundation, and leads into an open-plan kitchen and dining room space. The spacious living room features a bay window area and a cozy fireplace.
RESOURCES
 
 

Get Your Market Update on Washtenaw County Here

by Tom Stachler,ABR,CDPE - Group One Realty Team

Watch an update of the 2019 Michigan housing market in Washtenaw County by Real Estate One Family of Companies’ President of Brokerage Services, Dan Elsea. He recaps the market and gives thoughts on the next quarter and upcoming year for the real estate market in Ann Arbor, Dexter, Ypsilanti and all of Washtenaw County. 

 

Tom Stachler is a licensed Broker and Builder marketing homes and Rentals in the Ann Arbor Michigan area.  Also search for properties, houses, and condos for sale in Saline, Dexter, Chelsea, Milan and the Ypsilanti real estate markets.  Check out the handy Links for Home related information and and MLS inventory access above. 

Football Season Is Coming Soon

by Tom Stachler,ABR,CDPE - Group One Realty Team

Football season is coming up! Are you as excited as we are? We have a great calendar for you to print out to keep track of your favorite Michigan Football Team. Both University of Michigan in Ann Arbor and Michigan State in East Lansing have announced the dates of their Home games and away games.

 

 

Washtenaw Housing Market Update 2019

by Tom Stachler,ABR,CDPE - Group One Realty Team

Watch an update of the 2019 1st Quarter Michigan housing market in Washtenaw County by Real Estate One Family of Companies’ President of Brokerage Services, Dan Elsea. He recaps the market and gives thoughts on the next quarter and upcoming year for the real estate market in Ann Arbor, Dexter, Ypsilanti and all of Washtenaw County. 

 

 

Tom Stachler is a licensed Broker and Builder marketing homes and properties in the Ann Arbor Michigan area.  Also search for properties, houses, and condos for sale in Saline, Dexter, Chelsea, Milan and the Ypsilanti real estate markets.  Check out the handy Links for realty related information and and MLS inventory access above. 

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