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Tips for Winter Home Selling

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

The fact that days are shorter and colder in winter often means that selling a Home during this time of year is especially challenging. That doesn’t mean it has to be impossible, as there are some tips for winter home selling people can do in order to increase their odds of securing an offer.

Keeping driveways and walkways clear ensures that real estate agents and potential buyers are able to get to a property. If they can’t get to a particular home, they will bypass it and head to another one instead. Those who cannot clear snow and ice themselves should consider hiring a professional service to help them with this.

Outdoor lighting should be bright enough to illuminate a home’s best features, while also making it safe to enter. Adding new lighting or replacing burned out bulbs can ensure the property’s best features are highlighted, and which guests feel comfortable coming and going.

The inside temperature of a home should feel nice and toasty. When people enter, they don’t want to feel cold, as this will make them wonder whether or not the heating system works efficiently. If a home is vacant, installing a programmable thermostat that is operable by smart phone will allow homeowners to turn the temperature up just before visitors arrive.

Just as in the summertime, everything inside the home needs to be clean, tidy and well-staged. Plastic mats near the doorway will contain snow and mud, thereby helping carpets to stay clean. The angle of the sun during winter also makes streaks and grime more noticeable, which is why washing windows inside and out is highly recommended.

Doing some little things to make a home seem warm and inviting will go a long way toward enticing buyers. Simple things, such as flameless candles burning on an end table or warm cider simmering on the stove, can make a house feel more welcoming. Homeowners may not want to burn a wood fire in their fireplaces if they are not home, but simply staging some fire logs in front of the fireplace could still lend a cozy feeling to the home.

Many market reports show that sellers have fewer homes to compete with during the winter. This means that those who follow these tips for winter home selling are likely to make a sale despite there being inclement weather.

Financial Stretches for Buyers

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

Many prospective Home buyers, at one time or another, fall victim to the "kid-in-a-candy-store" mentality when they find the home of their dreams is available but happens to be priced just a little outside their price range. If you find yourself in this situation, there are some things to contemplate.

Sometimes financial stretches for buyers make sense. This is especially true when you consider that each additional thousand dollars on the overall Home Price equates to a mere $100 - $200 extra on the monthly mortgage payment.  Not only that, but Buying a nicer, larger home will often save you time and money in upgrades in the following years. This means that you can spend your years living in your home instead of working on it.

For a vast majority of people, the purchase of a new home is a long-term financial investment. So if you plan to be in the home for many years to come, then stretching financially may be a great buying strategy for you. 

However, everyone's financial situation is different and sometimes financial stretches for buyers are not a good idea.  For instance, if you are not planning on being in the home for more than 5 years, then you could lose a lot of money in the up and down cycles of the housing market. Also, if you do not have much job security for one reason or another, then you may not want to stretch to a more expensive home.

Financial stretches for buyers can be a calculated risk that pays off well over time. But if you’re a buyer with financial uncertainty, then you’re probably better off not pushing yourself to your financial limit. Talking with an experienced real estate agent is your best step for working out a buying strategy that works well for you.

Home Buying and Selling During the Holiday Season

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

It doesn't take a Black Friday horde to tell you that the holidays are a busy time for merchandisers, retailers and shoppers. However, what you might not know about this festive time of year is that potential Home buyers who are looking now are serious about purchasing your home.

This is one of the reasons why you, as the seller, should be as flexible as you can during this time when it comes to showing your home. It stands to reason that the more flexible you are for showings, including short-notice appointments, the more chances you'll have of selling your home fast.

In addition, sellers show consider how many decorations are put up for this time of year. Decorations are nice and can make the home more inviting. However, too many decorations inside or outside the home can be distracting. Certainly be willing to garnish your home in holiday cheer, but it would be wise to keep it to a minimum.

On the other side of the coin, if you are a potential buyer searching for a home over the holidays, remember that sellers may not have the ability to be as flexible during these often hectic months due to travel plans, hosting commitments, or any number of other valid reasons. In a word, don’t be discouraged if a seller cannot accommodate a home showing on a moment’s notice.

Both buyers and sellers can capitalize on the increased sense of urgency that is typically ratcheted up over the holidays. This is especially true for homebuyers since the vast majority of each group would prefer to close on a home purchase or sale prior to the close of the year.

To best facilitate these transactions in a timely fashion, buyers and sellers alike would benefit from the knowledge and experience of a real estate agent.

 

Tom Stachler is a licensed Broker and Builder marketing homes and properties in the Ann Arbor and surrounding area including 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.  Please keep us in mind if we can help you or an associate with their real estate pursuits in 2019!

Types of Home Loans and Mortgages

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

The two most common types of mortgages are fixed rate and adjustable rate. There are several others, some of which are described below, but it's best to keep it simple as you enter the labyrinthine maze of Home finance.

Fixed rate

These loans offer one specific rate for its entire duration; however, if interest rates fall, your rate may increase.

Adjustable rate mortgage (ARM)

Adjustable rate mortgages main attraction is their relatively low initial interest rate; however, they are directly impacted by the market conditions at adjustment time. So, your monthly payment can fluctuate, up or down, dramatically over time.

Hybrid ARM

A hybrid ARM is a blending of these first two mortgages in which the interest rate starts out fixed, but after a specified length of time, becomes vulnerable to the whims of the market.

FHA (Federal Housing Administration)

This is a government-secured loan that allows people who may have trouble qualifying for other financing a home loan with one low down payment; however, the size of the loan could be limited.

VA (Veterans Administration)

Here we have another government-backed loan; this one offers eligible veterans, active duty personnel and surviving spouses competitive interest rates, with little to no down payments.

Balloon mortgage

Similar to the aforementioned hybrid ARM, a balloon mortgage starts with a fixed rate, usually at a comparatively low number. Once the fixed period ends, the lender must pay back the full balance of the loan.

Interest-only

Another hybrid of sorts, interest-only loans allow the borrower to pay just the interest for an agreed-upon term, after which the full balance of the loan is due.

Reverse mortgage

This one is aimed at senior citizens who want to convert their home equity into cash. The crucial distinction between reverse and conventional mortgages is that with a reverse mortgage, lenders are not required to pay principal or interest as long as they live in or own the home.

The Difference Between Pre-approval vs. Pre-qualified

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

In a meticulous, often confusing process like Home Buying, it's vital for you to understand at least the basic terms. Sometimes real estate professionals and loan officers will use terms like pre-approved and pre-qualified interchangeably when talking about a home loan. They are not, however, the same thing.

Pre-qualification is an estimate of how much money a lender would be willing to loan you, based on a general assessment of your relevant financial information, such as employment status, overall income and estimated value of assets.

The pre-approval process requires the lender to perform a more in-depth investigation and evaluation of your creditworthiness, culminating in a tentative commitment for mortgage funding up to a specific amount.

Here are some more details on each of these to further distinguish these similar but not synonymous terms.

Pre-Qualification

This process begins with you either meeting face-to-face with a loan officer or talking with one over the phone. You'll provide basic information about your personal credit and finances, including any outstanding debts, total income and a potential down payment amount. This data is then used by the lender to provide you with a written estimate of how much you could comfortably afford per month for a mortgage.

There is neither a commitment nor cost associated for either party in a pre-qualification procedure. Its primary purpose is to give you a realistic perspective on how buying a home will impact your month-to-month household budget.

Most real estate professionals will tell you that it's best to make pre-qualification one of the very first steps in your home-buying journey, even prior to looking at houses.

Pre-approval

In order to get a pre-approval, and the tentative commitment that comes with it, you must provide your desired home loan lender with the actual documentation (usually in paper form) of your financial details (assets, debts, income, etc).

You can expect to pay a fee for this part of the process, mainly to cover the lender's expenses incurred by running a credit check, as well as verifying your employment data and financial records.

Your pre-approval is then officially acknowledged via a commitment letter containing the amount the lender is willing to extend to you for your new home purchase.

A pre-approval is neither a guarantee of future mortgage loan approval, nor is it a legally binding contract, meaning you still have the option of choosing another lender.

Use a Short Sale or Foreclosure Expert with a CDPE Designation

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

Buying distressed Ann Arbor Area real estate listings is not for the faint of heart or those wanting responses in 24 hours. Navigating through the minefield of a short sale or foreclosure takes time and dedication to find the right deals.
RealtyTrac recently reported that approximately 25 percent of all US transactions in 2010 involved distressed properties.  Bank-owned (REO) and short-sale transactions will continue to be a major part of the real estate experience this year with short sales on the rise at the expense of foreclosures.  Our present distressed property inventory is about 20% of the total inventory in the Ann Arbor Area. Check back or drop me a message for updates.

1. Is your agent trained to handle this business?
How many closed bank owned or short sales has the agent closed; ask for referrals. Do they have a CDPE (Certified Distressed Property Expert) designation?  selling distressed properties needs skill and dedication. This means the difference between getting a house or not. This means saving thousands of dollars in negotiating or not.

2. Have an attorney review all bank addendums
Many lenders have incorporated language in their contracts that calls for a “blanket indemnification of the lender.” You forfeit your rights, so it is critical that an attorney review all bank documents and indemnification language.

3.  Knowing How to Winterize, and De-Winterize and Access Utilities
If the utilities are on, make sure in the contract that they will remain on for inspections and the house is De-winterized for the whole house inspector. Likewise, with some REO's the buyer may have to pay DTE a turn on charge to get utitilies on.

4.  Know How to Save Money and Protect Yourself 
Make sure contract language states that all contingencies will start when upon receiving signed bank acceptance letter or documents.

Protect yourself by choosing experienced an experienced agent.  I have the CDPE designation and years of experiences and references.  Click here to Find the best foreclosures in Ann Arbor and the rest of Washtenaw, Wayne & Livingston Counties with using this Great Site.

Thinking about listing you Home using the Short Sale Process.  Get started by clicking here

Ways Buyers Can Save Money at Close

by Group One Realty Team - Real Estate One

Seller Concessions:

Percentage of purchase price towards allowable costs (percentage depends on program and downpayment, see chart below).

 

In addition to concessions, sellers can pay for the following:

1. Seller can waive tax pro­-rations from the buyer on the purchase agreement.

2. Disburse Use and Occupancy fee's (if any) to Buyer at clos­ing.

3. Pre-­pay association fee directly to the association. By giving the buyer a paid receipt allows this cost to remain off the final HUD.

Conventional

Down Payment

Allowable Concession

0 - ­10%

3%

11 - ­24%

6%

25% or more

9%

FHA and Non­-Conforming

Down Payment

Allowable Concession

3%

6% for costs/3% for down­payment (through 3/31-­2008)

VA

Down Payment

Allowable Concession

0%

6%

Investment Properties

Down Payment

Allowable Concession

All down payments

2%

Displaying blog entries 1-7 of 7

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