HomesByVance

5755 Shelly Court, Saline

2010-03-10T13:18:00.000-05:00

Take a look at this beautiful home for sale located at 5755 Shelly Court, Saline, priced at $439,000.

Welcome to 5755 Shelly Court in the Harvest Ridge subdivision of Saline! Imagine a peaceful ranch home in the country. You’ll find it in this well-built/maintained 3 bedroom custom-designed home. The secluded, quiet setting boasts gorgeous views. The high ceilings throughout offer a spacious feel. There are new floors in the main living area, the bedrooms, and the finished daylight walk-up basement. The natural oak kitchen & dining nook overlook a layered deck. There’s room for storage in the 2-car attached + 2-car bonus garage/workshop. A huge new Master bath is framed but incomplete. You’re minutes from everything. Don’t miss it!

View 5755 Shelly Court in a larger map

Here’s a brief walking tour of the main floor of this home:

…and a tour of the finished daylight lower level:

You can see dozens of photos of 5755 Shelly Court here.

Notables:
     * Lodi Township
     * Taxes $5385 (2009, Homestead)
     * Schools: Saline

If you’re considering luxury living in Saline, you owe it to yourself to check out this beautiful home. I’d be happy to give you a tour, so talk to someone with local knowledge! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate.com”.

3309 E. Dobson, Ann Arbor

2010-02-23T20:42:00.000-05:00

Take a look at this beautiful home for sale located at 3309 E. Dobson, Ann Arbor, priced at $895,000.

Welcome to 3309 E. Dobson in Ann Arbor! This Woodlands home has a classic layout with designer updates. As you approach the home, a new brick covered front porch greets you. Inside, you’ll find a formal dining room, new master bath and a new guest-suite bath. The kitchen features oak floors, cherry cabinetry, and granite counters. The breakfast nook overlooks a huge deck and private wooded back yard, which is loaded with nature. The family room features a soaring stone fireplace, with other fireplaces in the living room and master bedroom. Double furnaces keep you comfortable throughout the house. You’re less than 10 minutes to the hospitals (UM, VA, SJ). Don’t miss it!

View 3309 E. Dobson in a larger map

Here’s a brief walking tour of the main floor of this home:

…and a tour of the upper level of this home:

…and a tour of the finished daylight lower level:

…and a couple of views of the back yard and deck (taken during the summer):

You can see dozens of photos of 3309 E. Dobson here.

Notables:

          * City of Ann Arbor

          * Taxes $18,667 (2009, Homestead)

          * Schools: King, Clague, Huron

If you’re considering luxury living in Ann Arbor, you owe it to yourself to check out this beautiful home. I’d be happy to give you a tour, so talk to someone with local knowledge! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate.com”.

Saline - Tree City USA

2010-01-13T09:32:00.004-05:00

Did you know that Saline is a participant in Tree City USA? Do you know what Tree City USA is? (Original article by Vance Shutes). Let’s take a look at that today.

Tree City USA is a designation given by the national Arbor Day foundation. Saline has been a part of Tree City USA for six years (since 2004). It’s even noted on the street signs as you approach Saline!

In order to qualify for Tree City USA status, a city must meet four standards established by The Arbor Day Foundation and the National Association of State Foresters. These standards were established to ensure that every qualifying community would have a viable tree management plan and program. It is important to note that they were also designed so that no community would be excluded because of size.

1. A Tree Board or Department
2. A Tree Care Ordinance
3. A Community Forestry Program With an Annual Budget of at Least $2 Per Capita
4. An Arbor Day Observance and Proclamation

Arbor Day in Michigan is the last Friday of April.

Our state tree, the Eastern White Pine, is more prevalent in northern Michigan, but that doesn’t mean that Saline is without the State tree. I recall my daughter receiving a White Pine seedling on one Arbor Day during her elementary school days. That tree is now approaching 10’ tall in my back yard. So the Arbor Day Foundation efforts have definitely had an effect on the Saline community.

Take a look along the sides of the roads approaching Saline and see if you spot the Tree City USA signs. Saline – Tree City USA.

If you’re looking to do anything with Saline real estate and become a part of Tree City USA, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

Resolutions in 2010 for Saline real estate

2010-01-08T10:50:00.001-05:00

I’m not one of those folks who puts much emphasis on “New Year’s Resolutions,” but I’m up for making some Resolutions in 2010 for Saline real estate. (Original article by Vance Shutes). Let’s take a look at that today.

There are now 301 days until November 5, 2010, when we VOTE THE INCUMBENTS OUT!

The first of my Resolutions in 2010 for Saline real estate is something that you’ve seen near the top of each article for the past couple of weeks. I’m tired of the “status quo” here in Michigan. I’m resolved to making a wholesale change in our elected officials. VOTE THE INCUMBENTS OUT! Is my motto for the year! Heck, newly-elected officials at every level of government for Michigan CANNOT do any worse than those who have bungled us into the mess we have today! Let’s get some fresh ideas going in Lansing and in Washington, DC.

The next of my Resolutions in 2010 for Saline real estate has to do with marketing and visibility. If you’re a regular reader of this blog, then you know that I write here daily, six days a week. Collectively, there’s a ton of information here for both buyers and seller of Saline real estate. While I’m pleased that this information has become visible, it’s my resolution to make it even more visible in 2010. My clients expect that, and I expect it of myself!

The last of my Resolutions in 2010 for Saline real estate has to do with you, my readers. While I’ve been pleased to have an occasional comment on these articles, what I’d really like is to build some conversations with you about these articles. Do you agree or disagree with the premise of each article? Have I missed something that you’d like to see covered?

So there you have my Resolutions in 2010 for Saline real estate. Thanks for reading!

If you’re looking to do anything with Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

Uh Oh! A sewer backup!

2009-06-04T08:39:00.002-04:00

When you wake up in the morning, or you return home after work, you never want to hear “Uh Oh! A sewer backup!” If you do, your next thought would likely be “Will my homeowner’s insurance cover this?”

Spring and Fall tend to be our wettest seasons in Saline (this past Spring was, for sure!), making our homes most susceptible to the backup of sewer or drain lines. While these events don't occur often, when they do, the problem can be a small disaster (I know first-hand, as one of my rental properties had such a backup recently). Did you know that a standard homeowner's insurance policy excludes coverage for such an event?

It's true. The backup of sewer and drains, as well as the failure of a sump pump, is excluded from most homeowner’s policies. The damage you sustain from either of these problems will not be covered, and you'll be responsible to pay for the loss (and the clean up). If you have a finished basement, or use your basement area for storage, you shouldn't go without this coverage endorsement.

Heavy rains can trigger a backup. A storm sewer or sanitary sewer backs up into your home and usually comes in through a sump well, washtubs in the basement, or toilets in the basement. However, the damage can happen anywhere in the house. Sump pump failures normally occur from power outages or motor failures. Sump pumps run on electricity, and during a bad storm, the power can go out. That’s when you need the sump pump the most, to pump the water from the heavy rain out of the basement.

The damage can be quite costly. Normally damage occurs in the basement, which houses the mechanical systems of the house, such as the furnace, hot water tank, washer and dryer, and the numerous items we tend to store there. Water or sewage usually destroys anything it comes in contact with. For the possible thousands of dollars in damage, it would be well worth purchasing additional coverage with your homeowner's policy to cover such an event.

Be sure to ask your insurance agent about this coverage (to make sure you already have it on your policy). This coverage can often be purchased as an endorsement on its own, or with an endorsement that will expand or increase other coverages on the policy. The additional cost runs typically between $60 and $90 annually (well worth the peace of mind it brings). The key is to ask your agent or company what you best option is, and BEFORE you need. That way, you can breathe a bit easier when you hear “Uh Oh! A sewer backup!”

If you like what you’re reading here, please subscribe. Thanks!

If you have questions about your specific situation, or if you’re considering buying or selling any Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

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Vance's Bookshelf

2009-03-30T09:21:00.000-04:00

If you’ve been following my bookshelf reports for any time, you know that I enjoy history and biography. But this week’s reading took a different course – Greek tragedy.

The Oresteia, by Aeschylus, was my first venture into Greek tragedy since reading Homer back in college. Here’s a quick review:

The Oresteia is a trilogy of works by Aeschylus – Agamemnon, The Libation Bearers, and Euminides. Agamemnon describes his return from the Trojan War and his murder at the hands of his wife, Clytemnestra. The Libation Bearers describes Clytemnestra’s murder by her son, Orestes, in vengeance for her killing of his father (Agamemnon). Finally, in Euminides, we learn of Orestes’ acquittal at Athena’s court. Overall, the trilogy traces the evolution of justice in human society from blood vengeance (the killing of Agamemnon) to the rule of law (the acquittal of Orestes). This particular translation kept my interest fairly well, as it retains the essence of the Greek language, while it’s totally readable in present-day English. Of course, there are some unusual phrases throughout the book, but that’s to be expected.
Here are a few of my favorite quotes from the book:

Your words have overcome my disbelief, and I believe them, for a willingness to learn returns youth wisely to the old. (p.64)

A life unenvied is an unenviable life. (p. 76)

Charge answers charge, and who can weigh them, sift right from wrong? The ravager is ravaged, the slayer slain. But it abides, while Zeus on his throne abides, that he who does will suffer. That is law. Who will cast out the seed of curses from the house? (p. 99)

For though men idolize success as if it were a god, no, more than a god, Justice finds a way to right the balance. And some it swoops down on suddenly in the bright day; some it waits for, tensing, in the twilit shadows, and some it grabs only after black night has wrapped them in its useless shroud. (p. 109)

Don’t wipe away the seed of Pelops. So long as we live, you yourself can’t die, though dead. For children keep a man’s fame living on after he dies; like corks that buoy a net up, saving the flaxen meshes from the deep. (p. 125)

I pray that the crazed voice of civil strife that feeds on evil and is never full may never roar through this land. And may the earth not guzzle down the black blood of its people, and then, hot for revenge, welcome the city’s ruin, murder paid back with murder. Instead let citizens give joy for joy, loving the common good, hating a common foe: they’ll cure most ills this way. (p. 185)

Having now read a Greek tragedy, my appetite is set for more – though I’ll mix them in between my usual reading in history and biography. So look for more reports from my bookshelf!

If you like what you’re reading here, please subscribe. Thanks!

If you have questions about your specific situation, or if you’re considering buying any Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

Follow me on Twitter!

Bugs

2009-03-24T10:22:00.003-04:00

The weather has been warming up, so you’ve probably noticed that bugs are getting active again. In some of the vacant homes I’ve shown recently, there are various bugs on the inside windowsills, looking for a way to get out into the sunshine. Alas, many of them end up dead on the floor below the window.

As a kid, I was always fascinated by bugs (insects, to be more “formal”). My parents, noticing my interest in bugs, encouraged my interest, and got me involved in 4-H. If you don’t know about 4-H, ask me. If you do, then you know how much fun I had with my bug collection as a kid.

The photo above is from my kid’s bug collection. In fact, my daughter won a “best in show” award at the Washtenaw County 4-H show in 2006 and 2007 with her collection. Is it any surprise where she got her interest from?

Yes, bugs can be creepy, and even damaging to your home – that’s why we have “Pest Inspection” contingencies in our offers to purchase Saline real estate. But bugs can also be beautiful – witness the butterflies in the photo above – so be sure you’re looking above eye level at times so you can see first-hand!

If you like what you’re reading here, please subscribe. Thanks!

If you have questions about your specific situation, or if you’re considering buying any Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

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Looking for a new owner - 1469 Middlewood, Saline.

2009-02-23T14:21:00.000-05:00

I’ve written before about a beautiful home for sale in Saline – 1469 Middlewood. We’re still looking for that perfect new owner! Please take a look – perhaps you know someone who’s looking for just this home?

More info here.

More photos here.

Video walk-through here.

Ann Arbor condo for sale - 1325 S. Maple

2009-02-21T13:56:00.002-05:00

Take a look at this new listing of an Ann Arbor condo for sale at 1325 S. Maple (in Walden Hills). Priced at $115,000, it is available immediately.

Welcome to 1325 S. Maple, #303, in the Walden Hills condos of Ann Arbor! This is a beautiful top-floor 2 bedroom corner unit. You’ll enjoy a spacious living room, a fireplace with a beautiful mantle, and a wall of windows leading to the balcony (which faces west). You’ll also find showcase-designed window cornices, a new furnace, and laundry facilities in the unit. There is locked storage in basement. Walden Hills has a Clubhouse with an indoor pool, a raquetball court, fitness center, sauna and large entertainment room. Walden Hills is also close to highways, shopping and bus lines. The Association fees include water, sewer and carport.

View Larger Map

Here’s a brief walking tour of the condo:

You can see more photos of the condo here.

Notables:
* City of Ann Arbor
* Taxes $2147 (2008, Homestead)
* Association fee $290/month
* Schools: Dicken, Slauson, Pioneer

If you’re considering the condo lifestyle in Ann Arbor, you owe it to yourself to check out this beautiful condo. I’d be happy to give you a tour, so talk to someone with local knowledge! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate.com”.
You can search for condos in Ann Arbor here.

566 Hobart Court, Saline, MI

2009-02-13T13:19:00.002-05:00

There's a new listing at 566 Hobart Court, Saline, MI. Priced at $399,900, it is available immediately.

Welcome to 566 Hobart Court in the York Place subdivision of Saline! This is a custom-designed, original-owner home on an acre lot. In the kitchen, you’ll find maple cabinets and Granite counters. The kitchen is open through to the breakfast nook and the family room, which features vaulted ceilings and a mantled fireplace. The large dining room has space for entertaining. There’s also a first-floor study, off the foyer. You’ll find all the amenities you’d expect in the Master suite, plus the unexpected – a 2nd floor laundry. There are showcase colors throughout. The finished basement includes a wet bar and room for a home theatre. In back, you’ll find an incredibly beautiful 2-tiered patio and gardens surrounding the in-ground pool. This is a fabulous home!

View Larger Map
Here’s a brief walking tour of the home:

You can see more photos of the home here.

Notables:
* York Township
* Taxes: $6514 (2008, homestead)
* Schools:
K-1: Houghton Elementary
2-4: Harvest Elementary
5-6: Heritage School
7-8: Saline Middle School
9-12: Saline High School

If you’re considering a newer home in the Saline area, you owe it to yourself to check out this home. I’d be happy to give you a tour, so talk to someone with local knowledge! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate.com”.

You can search for homes in Saline here.

Be ready for your property taxes

2009-02-07T10:09:00.002-05:00

It’s that time of year for you to be ready for your Property taxes.

You should receive, from your local assessor, a notice of assessment change sometime later this month (February) or the 1st week of March. Here are a couple of examples:

· Lodi and Pittsfield Townships will mail out their 2009 assessment notices during the last week of February.
· The City of Ann Arbor will mail out their 2009 assessment notices during the 1st week of March.

The notices of assessment will give you the proposed 2009 State Equalized Value (SEV) and Taxable Value (TV). Your property taxes are based on TV, while the SEV is “supposed” to give you an idea of the market value of your property. We all know that the market value of our property has declined in the past year, so you should look for your SEV to decline this year. Each municipality may have a different rate of SEV decline for last year.

Your TV this year could change for 3-reasons:

The rate of inflation (Consumer Price Index, or C.P.I.) was 4.4% for 2009 for everywhere in Michigan – meaning that your TV may rise by 4.4% this year (Gasp!);
Any improvements that you made to your property in 2008 – meaning that if you improved your property last year, you should expect that your taxable value would go up by the amount of your improvement;
If you bought your home in 2008, your TV would un-cap and go to the same level as the SEV.

In your notice of assessment will be the schedule for the Board of Review (BOR) for your municipality. For example, in Lodi Township (where I live), the BOR is scheduled for 9am-3pm on Monday, March 9, and from 3-9pm on Tuesday, March 10. Your municipality will have a similar schedule. Typically, your appointment time with the BOR will be ten minutes. During that time, you will have an opportunity to present your case for the BOR to change (lower) your SEV or TV, or both.

There is one and only one question that typically matters with the BOR - does the SEV or TV exceed 50% of the market value of the property?

Things that are irrelevant to the BOR include:
· Your property taxes are going up while values are dropping;
· Your property taxes are higher than those of your neighbors;
· Your “feeling” that your property taxes are excessive.

Even if you are right on each of these three items, it doesn’t matter. What does matter to the BOR is that you show that your new TV is greater than 50% of the market value of your home as of December 31, 2008.

The window of time between receiving your 2009 notice of assessment and making an appointment to appeal with the BOR is narrow. You need to be ready for the notice, and call quickly to schedule an appointment of protest with your BOR. If you miss the BOR schedule, once the BOR adjourns, then your SEV & TV are set for the year.

In short, be ready for your Property taxes!

If you like what you’re reading here, please subscribe. Thanks!

You can search for homes and condos in Saline here.

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Five Deal Killers in Saline real estate

2009-02-04T08:32:00.002-05:00

No matter the condition of the real estate market, you’ll want to avoid these five deal killers in Saline real estate.

Skipping the pre-approval process. You do not want to pick out your dream home, tell everyone about the home you are buying, and spend money for the appraisal and inspections, only to find out that you are not eligible for a mortgage to pay for it. Do you know what your new dream home is going to cost you a month? I’ve written before that mortgages are still available in Saline. Let’s be absolutely certain that you have been pre-approved for your mortgage, so you’ll know exactly what you can afford!
Not understanding what you are signing. The offer to purchase that you sign is a legally binding contract. If you are selling, the buyer can force you to sell. If you are buying, the seller could sue you for any loss they incur as a result of your not completing the purchase of their home. It is a good idea to talk with an attorney BEFORE you sign the offer to purchase. Make sure that your purchase offer expresses completely your understanding of the agreement. In God we trust – everything else must be in writing, to be sure that you can enforce your agreements.
Letting Emotions override the facts. Never let your excitement over any Saline home or condo cloud your vision. You can jump up and down with excitement AFTER you get back in your car, or once the deal closes. Otherwise, the seller will see your enthusiasm, and take advantage of it. Trust me, it happens!
Poor timing. If you’re considering a home involved in a short sale, give yourself a few extra months to complete your transaction. The bank you want to buy from may take weeks, or even months, to accept your offer. There could be hundreds of other possible delays. If you are a first time buyer, you may want to time your move with the expiration of your lease – but remember that it is a whole lot easier to pay for one extra month of rent at the end of your lease than to try to find a place to live for a month while waiting for your “short sale” deal to close.
Missing the whole picture. The wisest investor I know taught me early that he never made money when he sold a property – he made money when he bought the property. For that reason, think about when you will sell your Saline home or condo before you buy it. For example, a one bedroom home or condo might be great for you, but there’s a limited market for re-sale, which may add to your time to eventually sell it, or it may result in a reduced market value when you sell. Think about your property taxes, commute times to work and conveniences, the quality of the local schools, deed restrictions (if the property is in a homeowner’s association), and whether the home will fit your needs five, ten, or twenty years from now. Drive by the home at various times of the day - a quiet street during the day may be a zoo at night, or traffic might make getting to or from your home a challenge. Not being able to back out of your driveway in the morning can sure make for a bad start to each day!

If you like what you’re reading here, please subscribe. Thanks!

If you have questions about your specific situation, or if you’re considering buying any Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

Follow me on Twitter!

Saline Sales Report for January 2009

2009-02-03T13:56:00.000-05:00

Here’s the latest Saline Sales report for January 2009. This is an update to my regular market report which I report around the middle of the month. If you are interested in Saline real estate, here’s what happened in January 2009.

Selling Prices
Saline Homes Active Sold Lowest Highest Months of Supply
City of Saline 75 8 $77,100 $189,000 9.4
Lodi Township 49 1 $213,000 $213,000 49
Pittsfield Township 56 3 $282,000 $344,790 18.7
Saline Township 16 1 $73,375 $73,375 16
York Township 45 1 $175,000 $175,000 45
Average 17.2

The average months of supply for January rose from 8.9 months in December. This is to be expected in mid-winter, especially in light of the cold and snowy weather in January. While the number of homes sold in January declined from December, we didn’t see a huge increase in the number of homes for sale, either.

Selling Prices
Saline Condos Active Sold Lowest Highest Months of Supply
City of Saline 26 1 $187,500 $187,500 26
Lodi Township 5 0 -- -- --
Pittsfield Township 6 0 -- -- --
Saline Township 1 0 -- -- --
York Township 0 0 -- -- --
Average 26

Unlike for homes, where there were still plenty of sales, the market for Saline condos showed significant weakness in January. There was only one condo sold, compared to three sales in December. Again, this could be attributed to the weather we experienced in January. We’ll be closely watching the market for Saline condos in the coming months, looking for a sign of an upturn.

All in all, don’t keep living Groundhog Day, over and over. So something different! Help yourself to be a part of the “sold” statistics for next month’s report!

If you’d like to keep up with the Saline real estate market, please subscribe. Thanks!

If you’re looking to buy or sell any Saline real estate, or have questions about your specific situation, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

Four good things about this winter in Saline

2009-01-30T09:08:00.003-05:00

Here are four good things about this winter in Saline:

The heavy blanket of snow (about 12” on my yard) is providing a terrific blanket for the farmer’s crops (winter wheat) and fields, and for our garden plants, during this extended cold spell. If we had this super-cold weather on bare ground, our plants would be wiped out!
After a winter like this, we will REALLY appreciate Spring this year! Once it hits 50 degrees, we’ll see convertibles with their top down, soaking up the warmth!
When the snow finally does melt (and yes, it will melt), all of the runoff will help to fill our ponds, rivers, and lakes – especially the Great Lakes. Lake levels have been falling since the early 1980s, so it’s time to refill the lakes.
Since the start of Winter (December 21, 2008), there have been 27 homes and 2 condos sold in Saline.

I hope this good news brings a smile to your face today!

If you like what you’re reading here, please subscribe. Thanks!

If you have questions about your specific situation, or if you’re considering buying or selling any Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

Follow me on Twitter!

Four good things about this winter in Saline

2009-01-30T09:08:00.000-05:00

Here are four good things about this winter in Saline:

The heavy blanket of snow (about 12” on my yard) is providing a terrific blanket for the farmer’s crops (winter wheat) and fields, and for our garden plants, during this extended cold spell. If we had this super-cold weather on bare ground, our plants would be wiped out!
After a winter like this, we will REALLY appreciate Spring this year! Once it hits 50 degrees, we’ll see convertibles with their top down, soaking up the warmth!
When the snow finally does melt (and yes, it will melt), all of the runoff will help to fill our ponds, rivers, and lakes – especially the Great Lakes. Lake levels have been falling since the early 1980s, so it’s time to refill the lakes.
Since the start of Winter (December 21, 2008), there have been 27 homes and 2 condos sold in Saline.

I hope this good news brings a smile to your face today!

If you like what you’re reading here, please subscribe. Thanks!

You can search for homes and condos in Saline here.

Follow me on Twitter!

Ann Arbor home for sale - 4 Manitou Court

2009-01-10T14:46:00.003-05:00

Take a look at this new listing of a home for sale in Ann Arbor Michigan, located at 4 Manitou Court, Ann Arbor, MI 48108. Priced at $79,900, it is available immediately.

Welcome to 4 Manitou Court in Ann Arbor! This 3 bedroom home is great for either owner-occupied or investment. It is presently leased $925/mo., so at this price, it will provide a cash return! The oak floors throughout are nicely refinished. There is an updated tiled bath, and oak cabinets in the updated kitchen. The lot is extra-deep lot, and includes a shed for storage, located on a quiet cul-de-sac location. You can walk to the nearby elementary school. This home is approved for a Short sale approved, and shown with 24-hour notice.

View Larger Map
Here’s a brief walking tour of the home:

You can see more photos of the home here.

Notables:
* City of Ann Arbor
* Taxes: $2265 (2008)
* Schools: Pattengill/Bryant, Tappan, Huron

If you’re ready to start your search for an Ann Arbor home or condo, talk to someone with local knowledge! I’d be happy to meet with you. Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Ann Arbor here.

Saline Sales Report for November 2008

2008-12-01T09:38:00.001-05:00

Here’s the latest Saline Sales report for November, 2008. This is an update to my regular market statistics which I report around the middle of the month. If you are interested in Saline real estate, here’s what happened in November, 2008.

Selling Prices
Saline Homes Active Sold Lowest Highest Months of Supply
City of Saline 85 5 $168,000 $463,500 17
Lodi Township 54 1 $498,200 $498,200 54
Pittsfield Township 66 7 $278,500 $377,500 9.4
Saline Township 19 1 $137,000 $137,000 19
York Township 48 3 $184,000 $190,000 16
Average 16

The average months of supply for November declined from 17.4 months in October. This continues a trend of improvement in the overall market for existing Saline homes.

Selling Prices
Saline Condos Active Sold Lowest Highest Months of Supply
City of Saline 31 0 -- -- --
Lodi Township 5 0 -- -- --
Pittsfield Township 6 0 -- -- --
Saline Township 4 0 -- -- --
York Township 0 0 -- -- --
Average --

While there were no condo sales in the Saline market for November, keep in mind that there was a 12.3 months of supply inventory of condos for sale during October, when there were 49 condos for sale. During November, the number of condos for sale declined slightly to 46 condos for sale, so the market for existing Saline condos continues to improve, as well.

If you’d like to keep up with the Saline real estate market, please subscribe to my blog. Thanks!

If you’re looking to buy or sell any Saline real estate, or have questions about your specific situation, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

The biggest shopping day of the year

2008-11-28T08:20:00.001-05:00

Today, the Friday after Thanksgiving, is known as the biggest shopping day of the year.

For my family, that is most certainly true!

We start with all the ads in the Thanksgiving newspaper – actually, it’s one of the few times during the year when I even bother to look at the ads. Working with the list of family members we selected on Thanksgiving day, we’ll put together our “shopping list”. Then, it’s off to the stores!

The Friday after Thanksgiving has been given the name “Black Friday” – not because it’s bad, but because it’s good. It is likely the first day of the year when a store moves into the “black” on their profitability statement. Think about that! You own a store, and all year, until Thanksgiving, you’re losing money. But beginning the day after Thanksgiving, you begin making a profit for the first time all year. Talk about risk! Those store-owners are counting on us to make their year profitable, starting today. So, it’s time to hit the stores now.

Go. Shop. Now.

If you like what you’re reading here, please subscribe to my blog. Thanks!

If you’re considering a Saline home or condo, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

Saline market report for November 2008

2008-11-17T09:02:00.003-05:00

Here’s the latest Saline market report for November, 2008. This is an update to my regular sales report which I reported earlier this month. If you are interested in a Saline home or condo, here’s how our market looks in November, 2008.

Each month, I review all of the homes for sale (column 2) in Saline within defined price ranges (column 1), and those homes where the sellers have accepted a sales offer from a buyer (columns 3 & 4 – Percent Pending). I also review all of the sales in past 30 days in each price range (column 6). The results for November 2008 are shown in the table below:

Using the data shown above, this month, let’s look at a chart of the number of months of inventory of homes for sale in Saline. The number of months of inventory is calculated by taking the total number of homes available for sale (column 2 above) divided by the number of homes which have sold in the past 30 days (column 6 above).

In the chart above, the blue bars show the number of months of inventory each month in 2007. The red bars show the number of months of inventory each month so far in 2008.

This chart clearly shows the continuing improvement we see in the Saline real estate market. Other than back in January, 2008, the level of inventory so far in 2008 is lower than in the same month in 2007. The figure for November, 2008 is that we have 11.4 months of homes to be sold. The figure for 2007 was 16.8 months of homes to be sold.

The holidays are right around the corner, and Saline homes and condos are still selling. I’ll continue to keep track of our market. Count on it!

If you want to be the first to know about conditions in the Saline market, please subscribe to my blog. Thanks!

What do you think? Do you see the market improving here in Saline? I’d love to read your comments on our market.

If you have questions about your specific situation, or if you’re considering selling your Saline home or condo, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

A sight for sore eyes in Saline

2008-11-13T12:41:00.002-05:00

Just this morning, we saw a sight for sore eyes in Saline.

Did you ever think we’d see gas prices below $2 again?

If you like what you’re reading here, please subscribe to my blog. Thanks!

If you’re looking to buy or sell a Saline home or condo, or have questions about your specific situation, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

Featured homes

2008-11-11T10:20:00.000-05:00

Here’s an update on my featured homes for sale, and for lease.

1469 Middlewood, Saline ($245,000)
161 Commons Circle, Saline ($145,000)
1513 White St., Ann Arbor ($200,000)
1218 City Dr., Ann Arbor ($150,000)
1766 Fulmer, Ann Arbor (Lease - $1295/mo)
4125 Weber Road, Saline (Lease - $1375/mo)
211 Old Creek, Saline (Lease - $1400/mo)
212 Commons Court, Saline (Lease - $1000/mo)

You can take a virtual tour of any of these homes through the respective post.

If you’re ready to start your search for a Saline home or condo, talk to someone with local knowledge! I’d be happy to meet with you. Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

You can search for homes and condos in Saline here.

1513 White St., Ann Arbor, MI 48104 - Home for sale

2008-07-19T09:57:00.001-04:00

If you thought you couldn't afford to live in the Burns Park school district in Ann Arbor, check out 1513 White St.

212 Wolverine, Manchester, MI - home for sale

2008-07-19T09:56:00.002-04:00

Check out a great home for sale in the nearby quaint Village of Manchester, located at 212 Wolverine. It's worth the drive!

161 Commons Circle, Saline, MI - Condo for sale

2008-07-19T09:53:00.001-04:00

Check out a great condo for sale at 161 Commons Circle in Saline.

Do the right thing

2008-07-02T14:05:00.002-04:00

EQUAL JUSTICE UNDER LAW — these words, written above the main entrance to the Supreme Court Building, express the ultimate responsibility of the Supreme Court of the United States. The Court is the highest tribunal in the Nation for all cases and controversies arising under the Constitution or the laws of the United States. As the final arbiter of the law, the Court is charged with ensuring the American people the promise of equal justice under law and, thereby, also functions as guardian and interpreter of the Constitution.

Last week, the Supreme Court issued its decision in a case regarding a gun law in Washington DC. Given that Washington is a district created by the Federal government, it is appropriate that the highest Federal court in the land should ultimately decide the case.
And yet, any decision rendered by the Supreme Court must be interpreted through its chief function “as guardian and interpreter of the Constitution.” So the justices in the DC gun law case (a 5-4 decision that the law was indeed un-Constitutional) ultimately knew that their decision had ramifications well beyond the District of Columbia and its gun law.

Which leads me to my point.

Some are more equal than others

There were four justices who actually decided that the DC gun law WAS Constitutional.

If those four justices made their decision about DC (and ONLY about DC), then they were abrogating their Constitutional responsibility. They KNEW that their decision had to be viewed in their role as “guardian and interpreter of the Constitution,” no matter if they were only deciding a case in a federal district.

On the other hand, if those four justices made their decision about DC with full understanding of their role as “guardian and interpreter of the Constitution”, then they were deciding that the second amendment itself was un-Constitutional – a preposterous argument if ever there were one!

So which is it? Did those four justices abrogate their responsibility as “guardian and interpreter of the Constitution?” Or, did they decide that an Article of the Constitution itself was un-Constitutional?

Either way, they are either so incompetent as to be unfit for the job, or so devious as to be likewise unfit. They don’t deserve to sit on the bench any longer. And yet, we all have to suffer under their decision-making for the rest of their lives, or term on the bench.

A sad day for America and our Liberty.

Golf Course Economics

2008-06-27T12:18:00.001-04:00

Regular readers may know already that I enjoy playing golf. Even on a bad day, it’s still a great walk in the park. And while we see Tiger on TV hitting the ball 300+ yards on his drive, I’ve found that the greatest distance in golf is 6 inches – the brain space between the ears. If nothing else, golf is the supreme battle with yourself over control – control of your emotions and your physical body. If you can control the 6 inches between your ears, you can excel at golf.

While playing golf recently, I commented to my playing partner about the changing economics of a golf course.

Think about it.

A golf course is nothing more than an area of finely-maintained lawn. In order to maintain that lawn, it requires regular (daily) mowing – which uses lots of gas or diesel in the mower engines. In order to keep the grass green, and the bugs away, a golf course requires regular application of chemicals – fertilizer, herbicides, and pesticides – which are mostly made up from petrochemicals.

We’ve all seen the changes in the price of gas (and a barrel of oil) lately.

So if you’re a golfer, consider how the changes in the price of gas have hit your local golf course operation. It’s likely that we’ll be paying more for the privilege of playing golf in the future.

Lunch with a Friend

2008-06-27T12:03:00.003-04:00

About a month ago (May 19), I wrote about my experience at the BloodhoundBlog Unchained conference in Phoenix. The inspiration from the conference is still with me – I’m still working on my list of 30+ “things to do” which came out of my experience there.

One of the presenters at the conference is a fabulous Realtor® from Dayton, Ohio – Teri Lussier. She describes herself as “Real estate professional, social networking participant, Web 2.0 enthusiast. “ Being that we’re both in practice in the general “Midwest”, we struck a chord together at the conference. Her market in Dayton is not dissimilar from my market in the Ann Arbor and Saline area.

Yesterday (June 26), Teri and I met for lunch in Findlay, Ohio – about halfway between Dayton and Ann Arbor.

Our conversation ranged all over the map – follow-up from the conference, what we’ve implemented in our businesses as a result of the conference, family updates, and blogging in general.

The bulk of our conversation, though, was about Teri’s latest efforts at BloodhoundBlog. Project Bloodhound has been launched. The goal of the project is to collect some of the best and brightest comments and answers to questions. Those who will be asking the questions are six new participants at BloodhoundBlog. Their experience as Realtors® and as Bloggers ranges from newbie to experienced pro. Being a regular reader and commenter at BloodhoundBlog, I look forward to watching Project Bloodhound unfold. And with Teri’s guiding hand (keyboard? Mouse?), the project will be fabulous.

Hat’s off to you, Teri!

Market Statistics for Saline - June 2008

2008-06-16T10:02:00.004-04:00

If you like my blog, please subscribe! Just hit the "RSS" logo button to your right. Thanks!

You can also visit my new Blog at http://www.salinemichiganrealestate.com/

As you all know, I review our market statistics around the middle of each month.What I'd like to focus on this month is the Saline Michigan real estate market.

The first chart I’d like to review is shown above. I’ve tracked real estate activity for the Saline Michigan real estate market since 1996. There is a definite seasonality to the market – strength in the summer, weakness in the winter. A reading above 25% is a “seller’s” market, while a reading below 20% is a “buyer’s” market.

It’s no surprise to learn that we have been in a “buyer’s” market in Saline since the end of 2004 – more than three years, now.

What’s intriguing about this first chart is the strengthening of the Saline Michigan real estate market since January. What could be the cause of this?

This second chart (above) shows 2 lines. The top line shows the number of homes available for sale (listings) in the Saline area. The lower line shows the number of homes sold each month.
In answer to my question posed above (What could be the cause of this?), the strengthening of the Saline Michigan real estate market since October is a direct result of fewer homes listed for sale. How could this make the market stronger? Well, with fewer homes competing for the available buyers, it’s more likely that any of the homes listed for sale will actually sell during the month. That’s what we mean by a strengthening of the market!

Another interesting observation from the chart is that the number of sales in the Saline area has been rather consistent since 2005! In a previous post, we learned about the three "P's" that you control when you sell. The homes that are selling now, have been selling since 2005, are those that have consistency between the three "P's". Go back and check that post for a reminder.
The final piece of the analysis of the strength of the Saline Michigan real estate market is the months of supply of homes presently on the market.

This table shows the “raw data” that makes up the charts shown above. On the far right hand side of this table shows the “Months Supply” in each price range. Rather than focus on any particular price range, it’s more helpful to understand the overall level of inventory of homes for sale.

As of mid-June, at the present pace of sales of homes in Saline, there are enough homes on the market to supply only 8 ½ months of demand. This is down significantly since February, when there was nearly a 20 months’ supply of homes for sale. In the past few years, it’s been typical to have about 6 months’ supply of homes for sale, so our market is improving toward our average.

If you’re considering selling your Saline home or condo, you owe it to yourself to take advantage of my experience and market understanding. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

Flipping for Video of your Saline real estate

2008-06-13T09:47:00.002-04:00

It is said that you never get a second chance for a good first impression. When you’re looking to sell your Saline home or condo, you want to be sure that your home gives a great first impression.

Recently, I added a new tool to my real estate arsenal – the Flip video. If you haven’t seen one already, you likely will very soon. They’re becoming ubiquitous. Here’s why:

1. The Flip is incredibly easy to use for recording.
2. It has a USB plug-in already built in – just plug it into your computer.
3. The software for manipulating the videos is built into the Flip.
4. Once you’ve downloaded your video to your computer, you can immediately upload it to YouTube.

So why is the Flip so important when you’re looking to sell your Saline home or condo?

Most Realtors® pay close attention to the new listings of homes and condos for sale, every day. Most Realtors® also have set up “automatic” searches for homes and condos, to alert their active buyers of new listings which meet the client’s needs. We use the term “flash” to signify an e-mail update of the new listing information sent to the buyer client.

When that e-mail goes out to buyers, you want to have every tool for marketing your home in place – especially a video of your home. And that is where the Flip is so useful.

In the “olden” days of real estate sales (2007 and before), if you wanted a video of your home, you’d have to wait for a professional videographer to do the shoot. Then you’d have to wait several days, up to a week, to have the video available for viewing on the internet. Those videographers still exist, and they still serve a useful purpose.

But when that “flash” e-mail is sent, these days, we can include a video of your home available on YouTube. That way, when a buyer first sees your Saline home or condo for sale, they’ll be able to take a quick video tour of your home at the same time, when their excited about seeing your home. That could be just the edge we need in selling your home these days.

If you’re considering selling your Saline home or condo, you owe it to yourself to take advantage of my experience with the Flip video. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

Foreclosures in Saline

2008-06-11T08:27:00.003-04:00

It’s a sad fact of life that, even in the Saline real estate market, many people have lost their homes through bank foreclosure.

According to RealtyTrac; a website that logs foreclosure filings, foreclosure rates continue to rise in most of the top 100 largest metropolitan areas of the country.

The effects of foreclosure have spread beyond the delinquent borrower. The losses had a chain reaction from the defaulting borrower, to the lender and the investors. The foreclosure process costs the lenders thousands in losses through legal fees and taxes due until the property is sold. Not to mention the lost equity when the house is priced to sell in a weak market. We’ve seen the news that many of the major financial institutions (such as Citigroup, Bank of America, Morgan Stanley and Merrill Lynch) have reported billions in losses on investments backed by mortgages. You can read one of these reports here.

On a wider scale, even those who have not, or will not, default in their payment were affected. Foreclosure raises the risk of fire, vandalism, theft and other crimes not only in the vacant foreclosed homes but in the surrounding houses, streets and neighborhoods. Here is an article that discussed how the mortgage meltdown sparked a crime wave in one of the areas hardest hit by foreclosure.

When you combine an increase in inventories of foreclosed houses for sale with the typically lower-than-market value sale price of foreclosures, the result is that it weakens the local housing markets. It pulls down the value of other nearby homes and sometimes the whole neighborhood. Buying a foreclosed property in an area known for a lot of foreclosures doesn't leave much room for capital growth, if an investor is planning to flip it.

Remember, although there are many opportunities available in foreclosed properties, not all foreclosures present an opportunity for successful investment. Do your own research. Check the foreclosure statistics in the area. How did the foreclosures in the area affect the neighborhood? Did it increase the crime rate in the area? Are there any developments or job growth that can affect the area's future capital growth potential? Be aware of any indicators that can further dampen the house prices and look out for genuine bargains that can be a potential gold mine.

If you’re considering an investment in a foreclosed home in the Saline real estate market, you owe it to yourself to explore the risks and rewards first. I’d be happy to share what I’ve learned through my experience. Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate.com”.

Understanding Buyer Agency for Saline Michigan real estate

2008-06-09T09:20:00.002-04:00

If you’re in the market to buy Saline real estate, it’s vitally important that you understand buyer agency. In this article I’d like to briefly cover the subject.

When looking to sell their Saline home or condo, sellers will generally interview a number of agents, with the goal of hiring the best real estate agent to list and sell their home. As a buyer, you may just want to see some Saline homes or condos, and therefore you may think that you need an agent only to open the lockbox and let you view the property. In general, many buyers really don't care who opens the door to the house for them.

But they should.

When someone calls me to see one of the many homes I have listed for sale, there are a number of questions I’ll typically ask:

Are you working with another real estate agent to help you buy a home? No, why?

Well, we have to ask. Why?

Because if you are already working with another real estate agent, and if I'm not the listing agent for the home you want to see, then I can't show it to you. Aren't you the listing agent?

No, unfortunately, all of the available homes for sale in the Saline real estate market that you can view on my website are not my listings. Who's the listing agent?

You see, if you want to buy a home and you don't understand buyer agency, you really shouldn't be buying a home. If you do understand buyer agency and choose not to use a buyer agent to represent your interests in the transaction, then by all means, buy a home.

A real estate agent does more than open the lockbox and the door to the home and point out the obvious, such as “This is the kitchen” or “That's a nice walk in closet in the master bedroom.” A real estate agent offers a buyer negotiating expertise, knowledge of the Saline real estate market, and experience in helping buyers avoid potential pitfalls when buying a home. I’ve always looked at Buyer Agency as making sure that a buyer doesn’t make a mistake.

A buyer who chooses to become a client by entering into a written Buyer Agency agreement can expect me, and my Company, to provide the following client level services:

Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable care and skill

Client level services also include advice, counsel and assistance in negotiations (emphasis added).

The best part of buyer agency in the Saline real estate market is that it doesn't cost you any money to be represented. The seller pays the commission to the listing broker, who splits it with the broker representing the buyer.

If you are ready to look at Saline homes or condos, call me at (734) 476-2063, and I’ll guide you to find the perfect home in Saline to meet your needs.

Stage your Saline home for selling now

2008-06-06T11:38:00.002-04:00

If you’re looking to sell your Saline home or Condo, ask yourself how serious you really are to sell. If you’re really serious, it pays to have your home professionally staged.

Home Staging is the very best proven way to get top dollar for your home as you prepare it for sale. Homes that are Staged by a Professional Home Stager sell faster and for more money! This is because Staging sets the scene throughout the house to create immediate buyer interest in your property. This will then lead to your home selling for the highest possible price in today's market. Remember, "The way you live in your home, and the way you market and sell your house are two different things."

“Home staging” is not a new term, but for many homeowners and real estate agents the concept of “professional home staging” is shedding new light on how to promote a home in the real estate marketplace. In past years, homeowners were left to their own discretion as far as preparing for home showings. Though they could occasionally rely on an agent for instructions, more often than not real estate agents were just as perplexed at working out the details as the homeowner.

While agents are experts in the field of selling and closing, many are not design savvy. Agents usually know exactly what factors can help sell a home. It’s just not always easy to get a home into selling condition in a timely manner without some sort of experienced assistance.

Professional home stagers are practiced in the art of preparing a home for resale. They work with the “flow” of a home, eliminate clutter, edit and arrange furniture, and even assist in enhancing curb-appeal. With the aid of a professional home stager, your house can make a notable first impression on potential homebuyers. As the real estate industry often stresses, the first impression is the key factor in selling your home.

You find and select a professional home stager much like you would find any other professional service. Ask around and get referrals. Check with your real estate agent.

When you contact a home stager, ask for an estimate. Most home staging businesses will be happy to give you a free estimate and it is usually a quick process. Keep in mind that this is only an estimate and estimates can be a bit off. However, unless something unforeseen takes place between the estimate and the actual job itself, an estimate should be fairly accurate.

Get several free estimates and make some calculations. Just like any service, pricing in the home staging industry can vary over a wide range. Some charge an hourly rate and some will charge you a set fee for the entire job. Be sure to ask how they determine their fee so that you can make an educated decision. Also, factor in the condition of your home, the average amount of time homes have been on the market in your area, and the asking price of your home.

Asking price can play a huge factor in what you should be willing to pay for staging services. Some professional home stagers bring in rented furnishings, driving the price up considerably. Some simply charge too much to make it pay off. A lot of home stagers seem to forget that their clients are planning on moving out of the house very soon. Most home sellers are not willing to invest a huge amount of cash in a house they are planning on leaving behind.

Find out up front what the stager is planning to bring in and at what cost. Though expert services do come at a price, the cost should balance with the expected benefit of a higher selling price. As a rule, the higher the asking price of the home, the more one can spend to have it professionally staged.

So when it’s time to sell your Saline home or Condo, consider having it professionally staged. If you’d like the names of some excellent home stagers in the Saline area, give me a call at (734) 476-2063.

Open House - Sunday, June 8, 2008

2008-06-05T11:41:00.002-04:00

1469 Middlewood, Saline, MI 48176

You're invited to visit this beautiful 3 bedroom home in the Maplewood Farms subdivision of Saline.

I'll be hosting an open house on Sunday, June 8, 2008 between 2-4pm. You're welcome to visit during that time.

I look forward to meeting you on Sunday!

Too good to be true!

2008-06-04T09:53:00.002-04:00

Just another quick article to let you know how I recently helped a client with their Saline real estate investment plans.

Bart and Lisa are experienced real estate investors in the Saline area. They watched with great interest as home prices have declined about 30% over the past 3 years, focusing mainly on bank foreclosures. Recently, a bank listed a home for sale which was “too good to be true,” only this time, it really was true!

Bart and Lisa had already done their “home”work, by getting their pre-approval with their bank. When the opportunity came up, we jumped, making the first and best offer, on the house.

After we had the home inspected and found nothing objectionable, we knew that Bart and Lisa would be making money right away with this property.

A wise Real Estate investor once told me “I never made money when selling a property – I made money when I bought it.” Given the level of home prices right now – mostly in bank foreclosures - lots of people will be making money when they buy. Will you?

Are you ready to start your Saline real estate investment search? Contact me, and I’ll guide you on finding the perfect investment property in Saline to meet your needs. (734) 476-2063.

Saint Joseph's Statue?

2008-06-02T09:38:00.003-04:00

Why do people bury a statue of a Saint in their garden? How could it be nice to a real Saint to bury a statue of him in the ground? These questions inevitably come up when considering the old tradition to bury a statue of Saint Joseph when you want to sell your Saline real estate.

The history behind the tradition to bury a statue of Saint Joseph is hundreds of years old (A.D. 1515 - 1582). It began in Europe when the nuns at a Cloister needed to expand their land, and as a prayer to Saint Joseph, they buried medals of him in the ground. After a short time they found out that their prayers had been heard and they got more land. This old story has lived on until today, but on the tradition has changed from burying medals to burying statues.

When you first heard that a friend sold their house thanks to a statue of Saint Joseph, you may have been confused. Like any other normal person, your first response was likely “No surprise there!” when your friends told you that they had wanted to sell their Saline home for a few months, but no one showed any interest.

That was when they were recommended to try to bury a statue of Saint Joseph by their “For Sale” sign. They felt a little strange burying it, but they also said that they had known many people that had put their faith in God and succeeded, and that history is full of those stories, so why not give it a try? They bought a statue of Saint Joseph, read the instructions, read the prayers, and said that after the ritual was done, they felt relief, and really knew that soon they were about to sell their house. One week later, they were pleased to accept an offer on their house.

Your friends were religious before, but their faith in the Saints and Saint Joseph has surely increased. That little Saint Joseph statue they buried followed them to their new home, and can be seen over the fireplace in the living room. Do they credit the sale to Saint Joseph? For sure, that little statue helped them to get the faith they needed to make the sale. And they did.

So when it comes to buying or selling your Saline real estate, I look forward to the opportunity to serve you. Vance@SalineMichiganRealEstate.com (734) 476-2063.

Open House at your Saline home?

2008-05-30T09:50:00.003-04:00

When you are considering Saline real estate, you may be wondering “What is an Open House, and what is its purpose?” The short answer: It depends. That wasn’t very helpful, was it? Let me explain.

An Open House can serve a multitude of purposes - it’s a real multi-purpose tool for a real estate agent. The intended outcome is to sell your Saline home, so that should be the primary goal of an open house. But the fact is, that doesn’t happen very often. Why? There are lots of different reasons most homes don’t sell at the open house. So why do Realtors® hold open houses? To sell your house. OK, is this not making sense?

Look at it this way: If your home does not sell at an open house, that does not mean the open house was not successful. Perhaps the buyers came through and will take that information back to their own Realtor®. Perhaps they are parents or friends of out of town buyers and will take that information back to the buyer. Perhaps they are nosy neighbors who are have always been curious about what your property looked like, but once inside, they know someone who would love your house! By holding an open house, you are creating interest in your Saline home. If your home is priced correctly, and prepared properly, you and your real estate agent have a real opportunity to generate some buzz. Hopefully you have done the things you need to do in order to welcome serious buyers. So what is your Realtor® doing? Marketing, of course!

How do you market an open house? It depends on the market for your home. Who are the potential buyers? Your real estate agent should be able to tell you who those buyers are, and have a plan for reaching them. You are hiring a real estate agent to market your home, hopefully they understand the difference between buyers who are looking for starter homes and buyers who are looking for a palatial estate in the country. Some marketing will be similar for each, but marketing is never a one-size-fits-all proposition.

Open houses are a form of entertainment for some people on a Sunday afternoon. Some Realtors® complain about those visitors, but I welcome them! Who better to appreciate your home than someone who looks at open houses for fun and excitement? I figure these are the people who are talking up homes to their friends! “You are moving?!? Where to? Oh! I just went through the cutest little home in Saline last week! Let me tell you about it…” Hooray! We have someone marketing for us! If you are an open house fan, you are welcome to my open houses anytime! Come on in! Take your time, look around. I only ask that you please remember me - Vance Shutes, Real Estate One, the brilliant and nice Realtor® who didn’t mind that you visited his client’s beautifully and well-priced home, welcoming you on Sunday afternoon as his guest. Then when you discuss homes tell people that you know a great Realtor® who holds the best open houses around (I suppose it’s too late for a shameless self-promotion alert… ?).

If you are selling a home, ask questions - know why an agent is holding your home open, and make sure it meets your needs.

I have to thank my friend Teri Lussier, in Dayton, Ohio for the inspiration for this article.

Michigan Get-aways

2008-05-28T09:03:00.004-04:00

There's nothing like a beautiful sunset to re-awaken your sense of the beauty in nature. Here’s what I saw over the Memorial Day weekend at my favorite “home away from home” in Frankfort, Michigan.

Frankfort is a small community on the Lake Michigan shoreline in the northwestern Lower Peninsula, at the mouth of the Betsie river. Betsie Bay is the home of many marinas, home for the serious fishing enthusiast and the serious recreational boater.

So, how does this relate to Saline real estate?

Simple! Saline is home to one of the top charter boat captains fishing out of the Betsie Bay.

Gold Coast Charters is operated by Eric Walline, a Saline resident. Captain Eric has hosted my family for fishing charters out of the Betsie Bay for several years now. Here’s a photo of our catch last summer:

Captain Eric also fishes out of Lake Erie during June and early July. Then he takes his boat north to Frankfort for the King Salmon season in Lake Michigan. He takes out charters both in the morning and in the evening. For some reason, the Salmon bite best at twilight, so we usually hit the water at 5am, and have our first fish in the boat by 6am. By 10am, the bites have stopped, and we head into port to have our catch cleaned and filleted. Occasionally, we take a nice fillet over to the Port City Smokehouse to get the freshest smoked salmon you will ever find! From lake to smokehouse within four hours!

Another of our favorite activities as a family is to hike the trails found all around Frankfort. Just north of Frankfort are the Sleeping Bear Dunes national lakeshore. There are dozens of great hiking trails throughout the dunes – just be careful to stay on the trail, so as not to harm the fragile dune grasses. Contrary to what you might expect from “dunes”, the wooded trails are extensive. Here’s a “grab shot” I took on Sunday morning – we had just seen several deer in this clearing, and I just missed them!

All in all, Frankfort is a great place for a Michigan Get-away!

America the Beautiful

2008-05-22T10:29:00.003-04:00

There's nothing like an airplane ride across America to give you a better understanding of how huge, dynamic, and beautiful our great country really is.

From the Rocky Mountains,

to the high Desert, to the checkerboard of cornucopia in the great middle of our land,

this truly is "America the Beautiful".

Great highways thread like ribbons across the land, flowing with the traffic of commerce - visible even from 38,000 feet. Serpentine rivers, bordered with lush greenery, carry their life-sustaining water along a meandering path. Snowy mountain peaks proclaiming their freedom from the bounds of the "flatlands." Everywhere you look out the window of the plane, you can't help but be in awe.

So, what does this have to do with Saline real estate?

Only that we live in a fabulous town with many of the same dynamism and beauty seen elsewhere in America.

Oh, sure, we've got our share of problems. Job uncertainty, foreclosures, homes sitting unsold for long periods. I'm no airplane-in-the-sky PollyAnna, after all.

In Phoenix, many of the same problems exist. The local Phoenix Realtors with whom I spoke over the past three days echoed the same concerns that you hear around Saline - job uncertainty, foreclosures, homes sitting unsold for long periods. The collective group acknowledged the challenges we face, then turned their backs on the shadows of despair. We were there to develop new skills, to learn new tools, which will allow us to serve our clients at an outstanding level of performance. Can anything be guaranteed? Only that you will get the very best I can give!

What made the past three days at the "Unchained" conference so energizing for me is the total confidence that the attendees have in the future. We've been through times like this before, and we survived. Many will actually thrive, because we see the glass as half-full.

So, take heart, my wonderful community of Saline! We will survive - Nay, we will thrive!

Remember, we have what they want!

See also:

Watch out, Phoenix!

Watch out, Arizona!

2008-05-20T10:13:00.002-04:00

Watch out, Arizona! And California, Washington, Colorado, and Nevada!

For the past three days, I have been attending the Bloodhound Blog Unchained conference in Phoenix. It’s humbling to be around so many brilliant Web 2.0 Realtors and Lenders at one time! While we’re indoors at the Heard Museum learning the tools needed to serve our clients at a superior level, outside, the temperature is 110°F. It’s HOT!

When it’s that hot outside, what’s the one thing we hear, over and over, that we need to protect us? You need to drink plenty of water.

The problem? Soon, there won’t be enough water to go around in Phoenix. There’s only so much water in the Colorado river, and when it’s all gone, it’s all gone. And that’s a really big problem. So, watch out, Arizona! Ditto for Colorado and Nevada!

In California, as in Washington state, the problem is different. Even though home prices there have fallen in the past two years, they are still WAY above the prices of homes in the Ann Arbor area. So, watch out, California and Washington state! My friend, Jeff Brown (BawldGuy Talking), even writes about California prices today on his blog.

In Michigan, we have the things that employers (and all residents) want: plenty of water, and plenty of (less expensive) homes and land. We also have the benefit of some really intelligent and talented graduates coming out of the University of Michigan. Some of those graduates would like to stay in the Ann Arbor area.

Is it any wonder why Google located their AdWords division in Ann Arbor? We have plenty of water, plenty of (inexpensive) homes, and plenty of talented young people just itching to break into the world of Google.

So, if you had the choice of relocating your family to Phoenix, or LA, or Las Vegas, or San Francisco, or Denver, or Seattle, would you go? Or, would you rather relocate to the Ann Arbor area, where you can buy a lot more home (within 5 miles of your work, when gas costs $4 a gallon) than in any of those cities, with plenty of water, and with great schools?

Do you think the employers in those cities may be having some trouble attracting good new employees, because of concerns over housing costs and lack of water? Hmmm…..

When it comes to Saline real estate, we have what they want.

Unchained

2008-05-19T10:26:00.006-04:00

“If you’re not growing, you’re dying”. That’s a pretty powerful statement, but, if you really think about it, it’s true. We can’t just stay the same – even our body temperature changes throughout the day!

So, in an effort to grow, and more importantly, to learn new ways to serve my clients better and better, I’m here at the Bloodhound Blog Unchained conference in Phoenix, AZ.

Far be it from me to even begin to tell you all about Unchained. The instigator of the conference is Greg Swann, of Bloodhound Realty in Phoenix. I had the great fortune to actually meet the man with whom I’ve been e-mailing and blog-commenting for the past six months. I’ve also met many of the other regular contributors at Bloodhound Blog. It’s always fun to put a face and voice to an e-mail and blog-comment presence!

Sunday was a “Bonus” day before the “official” start of the conference. We heard from Mary McKnight, of RSSPieces, about the power of this medium – blogging. I’ll be posting more on what RSSPieces will be doing for me in the near future.

We also had the opportunity to hear from a couple of giants in the blogosphere – Laurie Manny (Long Beach, CA) and Russell Shaw (Phoenix, AZ). Here’s a quick photo I took with both “on stage” at the same time. Awesome!

But before all the work of Unchained, I had the great fun of attending the baseball game between the Detroit Tigers and the Arizona Diamondbacks at Chase Field on Saturday evening with my Father-in-law and his significant other. Here’s a few photos from the game.

In comparison with the cool weather back in Michigan, it was 105 degrees today in Phoenix. The humidity was about 15%, so you barely even break a sweat when you’re outside – it just dries up before it can even put a shine on your skin! Even with the low humidity, it’s darn hot here! I’d take a nice balance between the mid-50’s in Michigan and the heat out here – say, a nice 75 degree day. THAT would be super!

Saline Real Estate market conditions for May 2008

2008-05-16T09:06:00.005-04:00

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As you all know, I review our market statistics around the middle of each month. What I'd like to focus on this month is the overall strength of the market in, and around, Saline.

The first chart I’d like to review is shown below. I’ve tracked real estate activity for the Saline real estate market since 1996. There is a definite seasonality to the market – strength in the summer, weakness in the winter. A reading above 25% is a “seller’s” market, while a reading below 20% is a “buyer’s” market.

It’s no surprise to learn that we have been in a “buyer’s” market in Saline since the end of 2004 – more than three years, now.

What we see here in the middle of May, 2008, is a continued strengthening in the overall real estate market, going back to last October. The jump in strength from April to May is very encouraging, as we have reached a level unseen since the summer of 2005. So, the question to ask is “What could be the cause of this?”

This second chart (above) shows 2 lines. The top line shows the number of homes available for sale (listings) in the Saline area. The lower line shows the number of homes sold each month.

In answer to my question posed above (What could be the cause of this?), the strengthening of the Saline market since October is a direct result of fewer homes listed for sale. Each month, there are fewer and fewer homes for sale in the Saline market. How could this make the market stronger? Well, with fewer homes competing for the available buyers, it’s more likely that any of the homes listed for sale will actually sell during the month. That’s what we mean by a strengthening of the market!

The final piece of the analysis of the strength of the Saline real estate market is the months of supply of homes presently on the market.

As of mid-May, at the present pace of sales of homes in Saline, there are enough homes on the market to supply about 10 months of demand. This is down significantly since February, when there was nearly a 20 months’ supply of homes for sale. In the past few years, it’s been typical to have about 6 months’ supply of homes for sale, so our market continues to improve toward our average.

If you're looking to sell in this market, take heart! Call me!

Auction your Saline Real Estate

2008-05-14T11:06:00.001-04:00

The traditional method for selling your Saline real estate is to list it with a Broker. By “traditional”, I mean only that most sellers choose this method. You ask your friends and relatives for the name(s) of reputable Realtors®. You contact each of them, making note of the ease of reaching them, and your comfort level in speaking with them (after all, you’ll be speaking with them a lot during the selling process). You choose one and begin the listing process.

In today’s market for Saline real estate, we have an 11-month supply of homes available for sale. What that means is that it could take many months to get your home sold. (Let me emphasize that it could take that long, depending upon your asking price).

But what if you can’t wait that long to get your property sold?

There’s always (gasp!) an AUCTION (HUGE GASP!)

Why would you choose an auction?

With a real estate auction, you have the likelihood of a certain date for the sale of your property. I must emphasize that it’s only a likelihood – which you’ll understand more below.

There are two primary forms of auction.

1. An ABSOLUTE auction. This is where the property sells, no matter the hammered price. It is via an absolute auction that you get the most interest from the buying public, as they know that THEY could be the one to scoop up your property at THEIR price.

At an absolute auction, you also know the exact date that your property will likely sell. (I say “likely”, because until the buyer actually hands over the certified check to the auction house, it still isn’t sold).

2. A RESERVE auction. This is where the property sells, but only if the hammered price is above your minimum price. At a reserve auction, you’ll generally see fewer buyers than you will at an absolute auction. Bidders at a reserve auction will not know your minimum price. My guess is that a bidder’s thought process will be something like this – “I’ll bet they set a reserve because they ‘have’ to get a certain price, so I won’t bid as high, and hope only that I’m above the minimum.” Contrast this attitude with one from an absolute auction, where the bidders will continue to bid until they either win, or reach their maximum bid level.

At a reserve auction, if the reserve price isn’t met, you still won’t have a certain date that your property will sell. You may have to list it for sale again with a Realtor®, or try another auction. But understand, once an auction fails, the likelihood of a bidder increasing a bid amount is totally diminished. This ties into one of my fundamental truisms of real estate – the first offer is USUALLY the best offer.

I have been the listing agent for sellers at auction in the past. It is a gut-wrenching process to go through – not for those with a weak stomach. It’s not like eBay where you don’t see the seller or the other participants. Think about this. You have to know with absolute certainty what price you will accept, and stick to it. No wavering.

In one particular case, I recall watching a seller writhe in agony as the hammered bid amount was just slightly below the reserve price. I advised the seller to accept the bid, even though it was below the reserve level. While the seller deliberated, the buyer tapped his foot, waiting, and about two minutes later, walked away. The seller lost the sale, and eventually lost their house to foreclosure. Rather than accept a little less than they “wanted”, they lost their entire equity and their ability to borrow for years to come. All for a couple thousand dollars. Ouch.

If you’re wondering about an auction of your Saline real estate, ask an experienced Realtor® first.

Beanstalks Play Cafe of Saline

2008-05-12T10:26:00.000-04:00

I’m not much of a coffee drinker (Pepsi is my choice for COLD caffeine). That said, many of my friends and clients (especially those with younger children) have lately spoken of a new spot for coffee (and more) in Saline.

Beanstalks Play Café is located in the old Calico Cat building (which is a former church built in 1899) at 117 S. Ann Arbor St. The building is located within the central business district in downtown Saline. Beanstalks Play Café joins the growing trend of businesses geared toward family-oriented play and recreation.

The space has a giant play structure, toddler area, small gift shop, coffee bar and snack area on the main floor. The lower floor has a video game room and space for birthday parties, and the top floor has an office.

Admission to the play cafe for a day is $6 for children ages 1 to 15. A three-month pass is available for $55 for one child, $90 for two children and $125 for a family of three or more children. Adults and children under 1 are free.

The proprietor, April Scarlett, considered a franchise (like Jungle Java), but wanted the freedom to bring her own expertise to the center without corporate interference. She previously owned a children's party-planning business for five years.

So when you’re considering Saline Real Estate, (especially for the schools!), you’ll know that there is a local place for your kids to work out some of their energy. This is especially important in the era of $4 per gallon gas!

For more information on Beanstalks, call (734) 944-7979 or visit www.beanstalksofsaline.com.

The Importance of Pricing

2008-05-09T11:17:00.002-04:00

In good times and bad, in buyer’s markets or seller’s markets, the number one influence on the sale of your Saline real estate is Price, Price, Price. Oh, sure, the three most important issues to most buyers (and sellers) are Location, Location, and Location. But unless you have a mobile home, there’s not much you can do to move the location of your home.

Having lived in Saline since 1985, I’ve seen the changes in price of most Saline real estate over the years. In fact, since 1996, I’ve kept records of the pace of sales activity in the Saline area. It’s what I call my Total Market Overview, or TMO for short.

Using the TMO, I can show you how, since 1996, we have moved from a moderate seller’s market, to a strong seller’s market, to a neutral market, to now – a strong buyer’s market. If you’d like to see the graphical TMO, I usually post it around the middle of each month.

Today’s market conditions – a strong buyer’s market – means the following:

There are many more homes for sale than there are buyers looking for a home. In economic terms, we have too much supply chasing too few buyers. Price has to come down until the extra supply is finally sold off.

So, getting the price of the house right is the number one influence on getting your Saline Real Estate sold today, and getting on with your life.

Here's a short video that makes the point:

See also:
What $4 gas means to Saline Real Estate
Curb Appeal
It’s the Big Sale!

I'm Tired of Stairs!

2008-05-07T09:49:00.000-04:00

Just another quick article to let you know how I recently helped a client with their real estate needs.

Bob and Zoe had grown tired of climbing stairs in their 2-story home. It was time for them to move to a home on a single level.

Geographic proximity to their children and grand-children defined the limits of our search for a ranch-style home or condo. We screened dozens of choices to find a few developments which offered the various amenities important to Bob and Zoe, which meant that we had only to visit a few properties to find the right one.

And now, Bob and Zoe are enjoying their new home, all on one floor!

Meanwhile, they are able to lease out their former home, earning income for their future needs.

So, who do you know that is tired of climbing stairs? Please pass this article along to them.

What are you waiting for?

What $4 gas means to Saline real estate

2008-05-05T09:53:00.001-04:00

When the gas pump turns off automatically at $50 while filling your tank, you know that gas prices are REALLY high. But, what does that mean for Saline Real Estate?

Most of the articles about the price of gas are based upon an implicit assumption: that the price of gas is only temporarily as high as it is. This is not the case. Gas isn't going to get significantly cheaper than today. As a matter of fact, it’s a better bet that the price ten years from now will be much higher. It's a matter of supply and demand. Two billion people in China and India are joining the consumer society, and they want our standard of living. There was a recent article in the AP headlined Gas guzzlers a hit in China, where car sales are booming.

But while sport utility vehicle sales in the U.S. are tumbling, automakers are finding that for China's newly prosperous car buyers, bigger is still better. So General Motors Corp. has made the Escalade a star of its Chinese auto-show display, and is eager to get it on the market there. "If you look at the fastest-growing market segments in China, there are two - SUVs and luxury cars," said Joseph Y.H. Liu, GM China's vice president for sales and marketing.

It isn't a matter of price gouging by the oil companies, or even by OPEC. The real bottleneck is in refining capacity. Oh, there's only a finite supply of oil and eventually it will all be gone. But right now, the things limiting supply are how fast we can get it out of the ground, and how fast it can be refined to a usable form. It doesn't matter how much water is in the lake if you need more supply faster than the pipes can carry it.

Suburban and rural real estate (like around Saline) grew on cheap gas. Five years ago, gas was $1.40 per gallon. A car that gets 20 mph can go 70 miles on $5 worth of $1.40 gas. With gas in Saline now over $3.60 per gallon, things aren't nearly so rosy. Instead of 70 miles, that $5 will only barely take you marathon distance (26.3 miles), and it's going to get worse. At $5 per gallon, the consumer with a job in downtown Detroit who lives in Saline (40 miles) has gone from spending roughly $1400 per year on gas for their commute (five years ago) to $3600 per year on gas now, to possibly $5000 per year (when gas hits $5 per gallon). That difference of $3600 is $300 per month right out of the family budget. In most cases, two spouses are driving separately, which means that difference goes to $600 per month, or more than $7200 per year right out of their after tax income. It’s only a matter of time before already-stingy mortgage lenders figure out a way to account for a borrower’s reduced ability to re-pay a mortgage. When mortage-ability is an issue, you know that home prices will be negatively affected.

Saline isn't the furthest of Detroit's bedroom communities, by any means. I know people who commute from Tecumseh to Southfield each day. Many commutes are over 100 miles, plus all the people from even further afield (for instance, Saline to Lansing). Despite greatly augmented gas mileage, hybrids aren't going to offset this increase and even if they were, people would be adding the cost of at least one new car in order to do so. I don't know if you've looked recently, but hybrids aren't economy-car priced.

With this effectively raising the cost of living further from the job, one of two things will need to happen: Either the places where the jobs are will have to relocate to the suburbs (where their workers can afford to live), or people will have to start finding places to live closer to their jobs. The older communities closer in have long been less attractive than new developments further out (like, in Saline), but raise the price of making that trip enough, and the macroeconomic reality will force people to start thinking more in terms of shortening the commute, even if it means they have to settle for a 1200 square foot house built in 1950 instead of a new 2600 square foot one way out in Saline. People are willing to make sacrifices when it's mostly time out of their day, but when it's a continuing drain on the wallet that means little Billy can have an 8x8 bedroom and food, clothes, and a college fund, or a 15x12 bedroom and none of the others, you can expect more people to start choosing the former.

What this means is that suburban bedroom communities (like Saline) become less valuable, while older communities closer in to the job centers become more valuable. For those who may not realize what I'm saying, the closer it is to places where people work, the more valuable it will become. This factor has always been present, and the cost to commute has always been part of the cost of the property, no matter how many people pretended it wasn't. It will become a more important component as time goes by and gas prices rise further. The further people have to drive to work every day, the less a given area will be worth. The people who work there won't have these costs, of course, but most of the skilled trades that get substantial paychecks have to work in the main job centers, and there aren't as many of those in Saline or Manchester as there are in the central areas of Detroit and Ann Arbor. Corporate facilities are where they are, and if you can't afford to commute, you're either not going to work there or not going to live here.

Buy or Rent that home?

2008-05-02T09:33:00.003-04:00

Not everyone wants to be a real estate investor. For that matter, not everyone wants to own a home of any kind. And that is okay. Some people just don't want to be "tied down" or have to deal with a leaking water heater or have to take the chance on replacing a roof.

But for those of you who are still wavering between buying and renting and are wondering how the current Saline Real Estate market plays into that decision and whether or not it is worth it and...

Let's just lay it all out there for you so you can make up your own mind.

Here is our scenario: A house in Saline that costs about $150,000 will rent for about $1200 in most of the Saline area. The house is a 3 bedroom, 1 and ½ bath brick ranch, in good condition, with (maybe) a 1 car garage. Let’s project that you will either rent there for 8 years or own there for 8 years. That’s about the average length of time a home owner stays put. Renters will move more often, but will usually move into another rental house before finally buying a home. So those are the rules.

RENT

We'll start with the renter because the numbers are more simple. Starting rent will be $1200/mo. We'll raise the rents approximately 5% every other year. Years 3-4 will be $1250/mo. Years 5-6 will be $1310/mo and years 6-8 will be $1375/mo. Sound reasonable?

At the end of the 8 years you will have paid to your landlord $123,240. And the good news is you didn't have to shell out any other expenses for repair type items.

OWN

Taking the $150,000 house, we are going to say that you are going to get a 100% loan. Don't think your’e alone! If you have little or no money to put down, you can still purchase a home in Saline. In fact, now is the perfect time to purchase a home. Historically low purchase prices, coupled with low 30 year fixed rates, are just two reasons to purchase Saline Real Estate now.

FHA IS THE WAY. There are many benefits that an FHA mortgage can provide to buyers. The most significant benefit is enabling the seller to cover a 3.0% down payment and pay all closing costs. There are no income restrictions. Whether you are a first time buyer, or a seasoned buyer, this is the most flexible program available in the mortgage industry today.

Based on a purchase price of $150,000 with the seller paying costs and down payment with a loan amount of $147,268, Principal and Interest (P&I) is $882.95 based on a 30 year fixed rate of 6.0% + PMI (Private Mortgage Insurance, required on FHA loans) of $60.63 + $275.00 estimated taxes and insurance. Your total monthly payment will be $1,218.58.

THE RESULTS

Over that same 8 year period you will pay PITI (Principal, Interest, Taxes and Insurance) of $116,984.

That is $6256 less than if you rented.

Now we have additional factors we have to take into account. Over that 8 year period you will have paid in interest alone $66,755. Home mortgage interest is deductible on Schedule A of your Income Tax return. If you are at the 28% tax bracket, you will have seen a tax savings of $18691 over those 8 years.

Now the difference is even more in OWN's favor, by $24,947 over the 8 years.

Another thing to think about is the reduction in the principal balance of your mortgage. Over those 8 years, each month you paid your mortgage, some of that money (at first a very small amount) went towards reducing the amount of money you owe. Over the 8 years, that amounts to $18,008.

The difference is now in OWN's favor by $42,955 over the 8 years. Do I have your attention now?

Still one more factor to take into account: Appreciation. It seems that we always talk about appreciation of home values. Lately, though, the talk is about lack of appreciation. Here in Saline, we have seen a loss in value of about 25% in the past three years.

Historically, the Saline housing market has appreciated at 5% a year. But for our purposes, we are going to use a yearly average appreciation of 3%. 8 years at 3% per year appreciation (on average) will make that $150,000 home sell for about $190,000. That is a $40,000 gain.

Now OWN's favor is by $82,955.

It is fair to say that after 8 years there will be deferred maintenance that will have to be caught up. So subtract from OWN $5000 for carpeting, $2,000 for appliances, $5,000 for painting and $5,000 for miscellaneous.

You are still left with an advantage to OWN by about $65,955.

There are, obviously, multiple variable and unknowns. The market could continue to go south like some gloom-and-doomers would have you believe. It wouldn't surprise me at all if we stay flat in 2008 and 2009.

There are those who would have us believe the stock market run-up of the '90's, and the real estate boom of the 2000's wouldn't end. They did. Now we are led to believe that the Saline Real Estate market will never rebound. It will. People will still need a home to live in. Banks will still exist, with a business model to make money by loaning money (for home purchases). You can count on that.

Another factor is lifestyle. Perhaps you just don't want to own. I understand that. I've sold duplexes where the tenants have been there more than 10 years. They liked where they lived, and didn't see any reason to do anything different.

The bottom line? Talk with an experienced Realtor®. They can guide you through the numbers of your specific situation, so you can make an informed decision.

Duplex? Do what?

2008-04-30T09:04:00.000-04:00

One of the biggest decisions most people will ever make with their finances and their lifestyle is to buy (or sell) a home. Getting the best bargain in the purchase, or making the most profit on the sale, give buyers and sellers so much to think about that many may never stop to consider keeping that old house - or buying another - as an income-generating property. But the rewards, in savings, profits and problem-solving, can be high.

One option for buyers who otherwise might consider home prices beyond their reach is the property that pays for itself: a house you live in part of and rent out the rest (the simplest form is a duplex). This offers not only an obvious balance of cost and income, but perhaps lesser-known benefits in taxes and mortgage.

The rental unit(s) can be depreciated over time; considered to offset the rental income, this can lower your taxes on that income. At the same time, the addition of the rent to your finances helps you qualify for a larger mortgage, and investors who occupy their rental properties can, under certain conditions, get interest rates lower than those who do not. Of course you'll want to decide if the demands of being a live-in landlord are for you.

One of my early clients as a Realtor® is a prime example of what you can accomplish with an income-generating property.

Rob was in his late 20s, had a great job in the area, and earned a nice income. He could qualify for a mortgage for a “trophy” home, if he chose. Instead, Rob followed a game plan which I would have loved to have followed at his age.

Rob bought his first duplex with me in my first year of business. It needed some minor work (sweat equity) on the owner-occupied side, while the rental unit was nicely updated. Rob fixed up his side in the two years he lived there. On the two-year anniversary of the purchase of his duplex, Rob called to ask about the available duplexes on the market. He bought his second duplex a month later. He moved into the new duplex, taking the “worst” side for himself, and renting out both sides of his first duplex.

Over the next two years, Rob fixed up the unit he lived in, building more sweat equity. As Rob and I were regularly in contact, I knew to send him the list of available duplexes at his purchase anniversary date. Rob bought his third duplex almost four years after his first duplex.

Why always two years between purchases? Tax purposes only. Not being a tax-law expert, I’m not qualified to explain exactly why Rob always waited two years between purchases, except to say that he always explained it as being for “tax purposes”. Ok.

To make a long story short, Rob now owns five duplexes. The first three are fully paid for. The income from those three are used to pay down the fourth duplex. By the time that Rob is in his mid-40’s, he will have all five duplexes fully paid for. He can retire, if he wishes, and live off the passive income for the rest of his life. But knowing Rob, he’ll keep building his empire.

Owning an income-generating property is not for everyone, but - from younger buyers offsetting their purchase costs, to seniors easing the expenses of their retirement years - it can be for all kinds of people.

Who know? You could be the next “Rob” that I’ll be writing about?

Junk Mail

2008-04-28T09:08:00.001-04:00

With no fear of heights, I’m not worried about climbing up on a soapbox for a good rant. Here goes:

I’ve written previously about the struggles of my aging parents. If we’re fortunate to have our parents around for much of our adult lives, it’s something that we all have to go through. Think of it as an educational opportunity to prepare for our own aging – should that actually occur.

One of the tasks which my parents have asked that I assist with is to go through their mail, which I’ve been doing for a couple of months now. And what I have to rant about today stems from that mail-opening experience.

It is absolutely abominable what some so-called “marketers” will do to trick the gullible (in my parents’ case, elderly)! Using envelopes with borders similar to the IRS’ official mail. Using business names (in the return address area) which closely imitate an official government entity. Using stationery which closely approximates what you would expect from a government entity. These are all very common, and frequent, occurrences I’ve experienced in going through my parents’ mail. Much to the chagrin of the mail marketers (they didn’t expect that some educated 40-something would actually read their material), I just chuck it all in the trash, cursing their businesses all the while. So far, I haven’t resorted to a common mail-marketer revenge tactic – to mail all their junk back to them in their postage-paid envelopes – but that’s coming!

No, I didn’t take photos of examples of these offending mail pieces – I didn’t want to run afoul of the law. No doubt, though, that those b*****ds know full well who they are! And if you’re in the “appropriate” demographic for their marketing efforts, you’ve seen their proffering already. Again, I say, B*****DS!!!

No Realtor® worth their MLS would ever disdain the use of mail in their own marketing efforts. It’s one of the many effective marketing efforts that we use in our daily business. But stoop to the level of those mail marketers who prey on the elderly and gullible with their shameless approach? Never!

Let this be a lesson to all Realtors®. Use the mails, but use them with respect for yourcustomer, your profession, and yourself.

OK, I’ll step off the soapbox now.

What do you want - Part I

2008-04-25T09:54:00.003-04:00

When it’s time for you to begin looking at Saline real estate, the first question I’ll ask you is “What do you want?”

Let me paint a word picture: Why does a 60-watt bulb light a room, but give little warmth, while a laser beam will burn a hole through the wall? The answer: Focus.

The more focused you can become about what you really want in your Saline real estate, the more powerful a force you become in the marketplace.

But, how do you really know what you want?

Your first inclination may be to go out and look at lots of houses. You want to experience first-hand what your “wants” both look and feel like.

Many people start off with a list of requirements that look like:
“Must Have”: What you absolutely know you want
“Should Have”: What you think you want
“Could Have”: What you’re not sure you want
“Won't Have: What you absolutely know you don't want

For any number of reasons, what people say they want doesn't always line up with what they really want in their minds and hearts. A lot of times that's because of the difference between theory and application: being able to actually drive the commute or experience how many flights of stairs there are gives people a clearer picture of "Could" vs. "Won't". The tricky part is separating the borderline "Must Have"s from the "Should Have"s.

Have you ever heard the advice, "You should always buy a home where there are good schools?" There are advantages to this because these are neighborhoods which are (in general) the last ones to decline and the first ones to appreciate, but remember that if the neighborhood has a reputation for good schools, that reputation is already priced into the house.

If you have school-age children, you may save money by buying in a less expensive neighborhood and sending your kids to private schools. You will get more house for your money if you don't have to pay for the school district's reputation. And you may get more upside from an ascending school district which is building a great reputation than one that's maintaining its high scores. When the best kept secret in the area comes out, people will be looking for that good value.

Most of us consider commuting a necessary evil based on where we live and work. Time is money, right? Well, almost, because no matter where you were born, what your parents have, or what your opportunities are, everyone starts off with 24 hours in a day.

You can measure the value of your time in two ways. Economists measure the value of time in terms of opportunity cost, the amount of money you can make with your time at its highest and best use. Most people measure it in exactly the same way except with things they can be doing - activities like spending time with the family, or reading a book.

Now consider the cost of your commute. Let's say you've live in your home for five years and take the same commute each day. You earn a conveniently round number $100,000 and work 50 weeks out of the year for 5 days a week. Here's what your commute costs:

At only half-an-hour each way, the commute costs $62,500 over that period and $125,000 if your commute is an hour (two hours a day) each way!

There's no value judgment behind these numbers. Some people want to save money to keep their families fed, happy and well-educated so they will trade more commute time for cash savings. Others prioritize spending more quality time doing other things and choose to allocate more resources to the problem. My thanks to Steve Leung for this analysis and the ideas built around it.

The beauty is that the choice is up to you and experiencing a house search with an expert is an effective way of truly understanding what you want and what you're willing to trade-off in your search for your Saline real estate.

PMI, or Private Mortgage Insurance

2008-04-23T09:35:00.004-04:00

As a home buyer in Saline, you want to know everything about the process before talking with anyone about your plans. That’s completely understandable.

Toward that end, I’d like to address the topic of Private Mortgage Insurance, or PMI. You’ll be paying PMI, in one way or another, whenever you put less than 20% downpayment on your Saline home purchase. If you’re a first-time homebuyer in Saline, coming up with that 20% downpayment may be a real struggle, so it’s especially important to understand PMI.

From Wikipedia, the free encyclopedia: Lenders mortgage insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property.

Another way to put it is that PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value.

PMI plays an important role in the mortgage industry by protecting a lender against loss if you default on a loan, and by enabling borrowers with less cash (like a first-time buyer) to have greater access to homeownership. With PMI, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.

In the past, most lenders honored consumers' requests to drop PMI coverage if their loan balance was paid down to 80 percent of the property value and they had a good payment history. However, consumers were responsible for requesting cancellation and many consumers were not aware of this possibility. Consumers had to keep track of their loan balance to know if they had enough equity and they had to request that the lender discontinue requiring PMI coverage. (As a side note, I track your home’s value for you, and call my clients when it appears that they may be able to drop PMI). In many cases, people failed to make this request even after they became eligible, and they paid unnecessary premiums ranging from $250 to $1,200 per year for several years. With the new law, both consumers and lenders share responsibility for how long PMI coverage is required.

You have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. You also need a good payment history, meaning that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years. Your lender may require evidence that the value of the property has not declined below its original value and that the property does not have a second mortgage, such as a home equity loan.

Mortgage lenders or servicers must automatically cancel PMI coverage on most loans, once you pay down your mortgage to 78 percent of the value if you are current on your loan. If the loan is delinquent on the date of automatic termination, the lender must terminate the coverage as soon thereafter as the loan becomes current. Lenders must terminate the coverage within 30 days of cancellation or the automatic termination date, and are not permitted to require PMI premiums after this date. Any unearned premiums must be returned to you within 45 days of the cancellation or termination date.

For high risk loans, mortgage lenders or servicers are required to automatically cancel PMI coverage once the mortgage is paid down to 77 percent of the original value of the property, provided you are current on your loan.

If PMI has not been canceled or otherwise terminated, coverage must be removed when the loan reaches the midpoint of the amortization period. On a 30-year loan with 360 monthly payments, for example, the chronological midpoint would occur after 180 payments. This provision also requires that the borrower must be current on the payments required by the terms of the mortgage. Final termination must occur within 30 days of this date.

It’s always best to speak with a lender before beginning your home-shopping experience. Your lender will explain to you all of your options regarding PMI. If you’d like the names of some outstanding local lenders, give me a call or send an e-mail.

1469 Middlewood, Saline

2008-04-21T09:39:00.005-04:00

Open House - Sunday, June 8, 2-4 pm

Welcome to this brief tour of my new listing at 1469 Middlewood in Saline. Priced at $249,900, it is available immediately.

This super-sharp colonial in Maplewood Farms is in a great location – central to the subdivision, on the northern edge of Saline, within walking distance to the elementary and middle schools, the public library, and near a main road into Ann Arbor.

This traditional, yet highly-versatile home is in beautiful, move-in condition with lots of natural light. You will be impressed.

A bright white kitchen.

Generously large bedrooms.

A partially-finished basement.

And if you act in time, you can enjoy summer evenings in the huge screened porch or out on the deck.

Notables:
* City of Saline
* Taxes: Approximately $5576 (2007)
* Schools: Saline

This is a fabulous home!

Are you Pre-Qualified or Pre-Approved?

2008-04-18T08:55:00.001-04:00

Before you begin to shop for Saline real estate, it is best that you set up a time to meet with a mortgage lender, so you can figure out how much you can afford. This will put you in a better position as a buyer.

It is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.

To get pre-qualified for a loan, a lender will collect information about your debt, income, and assets. The lender will also look at your credit profile and your assets for a down payment, so that you can get an idea of all the different loan programs that would work for you. The lender will then issue to you a pre-qualification letter indicating the amount you are pre-qualified to borrow.

It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow. It is not a commitment to lend.

Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home, because you have been approved for a loan for a specified amount.
To get pre-approved, you will complete a mortgage application. With the application, you will provide the lender with various information - your employment, assets and financial status. The lender will also review your mortgage options and submit your application to the investor that best meets your needs. Once the application process is complete, you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.

A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.

So, when it’s time for you to shop for Real Estate in Saline, ask me for the names of some outstanding mortgage lenders.

Ann Arbor Market Statistics - April 2008

2008-04-16T10:27:00.003-04:00

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As you all know, I review our market statistics around the middle of each month.What I'd like to focus on this month is the Ann Arbor real estate market.

The first chart I’d like to review is shown above. I’ve tracked real estate activity for the Ann Arbor market since 1996. There is a definite seasonality to the market – strength in the summer, weakness in the winter. A reading above 25% is a “seller’s” market, while a reading below 20% is a “buyer’s” market.

It’s no surprise to learn that we have been in a “buyer’s” market in Ann Arbor since the end of 2004 – more than three years, now.

What’s intriguing about this first chart is the strengthening of the Ann Arbor market since January. What could be the cause of this?

This second chart (left) shows 2 lines. The top line shows the number of homes available for sale (listings) in the Ann Arbor area. The lower line shows the number of homes sold each month.

In answer to my question posed above (What could be the cause of this?), the strengthening of the Ann Arbor market since October is a direct result of fewer homes listed for sale. How could this make the market stronger? Well, with fewer homes competing for the available buyers, it’s more likely that any of the homes listed for sale will actually sell during the month. That’s what we mean by a strengthening of the market!

Another interesting observation from the chart is that the number of sales in the Ann Arbor area has been rather consistent since 2005! In a previous post, we learned about the three "P's" that you control when you sell. The homes that are selling now, have been selling since 2005, are those that have consistency between the three "P's". Go back and check that post for a reminder.
The final piece of the analysis of the strength of the Ann Arbor real estate market is the months of supply of homes presently on the market.

This table (left) shows the “raw data” that makes up the charts shown above. On the far right hand side of this table shows the “Months Supply” in each price range. Rather than focus on any particular price range, it’s more helpful to understand the overall level of inventory of homes for sale.

As of mid-March, at the present pace of sales of homes in Ann Arbor, there are enough homes on the market to supply nearly 12 months of demand. This is down significantly since February, when there was nearly a 20 months’ supply of homes for sale. In the past few years, it’s been typical to have about 6 months’ supply of homes for sale, so our market is improving toward our average.

If you're looking to sell your Ann Arbor real estate in this market, take heart! Call me!

Mill Pond Park in Saline

2008-04-14T09:08:00.010-04:00

Every city and town has one park that tends to define the best features of the community. In Saline, that would be the Mill Pond Park. When you’re looking for Real Estate in Saline, Michigan, having a great park in town is an important consideration.

To those families with young children, most of us know the park more simply as the ROMP, which is an acronym for Re-create Our Mill Pond park. A number of years ago, civic leaders in Saline organized an effort to build a “super structure” playground for young children at Mill Pond. The ROMP structure has been a hit with my kids over the years! Here’s what it looks like from the sledding hill:

And speaking of a sledding hills, one of the better ones in Saline is located at the northeast corner of the park. From the bottom, here’s what the sledding hill looks like in the spring:

Many of us have our family pets, and the Mill Pond Park accommodates the dog owners in Saline with a “leash free” zone. Here’s what that looks like:

It’s a really large area, and borders the Saline river, so your dog can go for a swim if it’s really warm out. Just watch out for the swans and geese – they bite!

The entire length of Mill Pond park borders the “Mill Pond” area. Back in the 1800s, when Saline was being built, the Saline River was dammed up to create the mill pond. The pond water was used to drive a water wheel at the lumber mill, where area trees were converted to lumber for home building.

One of the other enjoyable activities at ROMP (as I call it) is to take the kids fishing. There are mostly panfish in the pond these days, but occasionally you’ll hook a large carp – and then, hang on!

While you’re at the play structure area, you can shade yourself under the pavilion, which is available for lease for large groups through the city of Saline.

Or, you can simply enjoy a walk around the park, which extends upstream from the mill pond into the Saline river, where you can enjoy the babbling brook.

Each summer, Saline is host to the Celtic festival. Much of the Celtic festival takes place at the Mill Pond park.

The park is also used by the Saline High School Cross Country teams. When you walk around the park and see some of the hills the XC runners have to go up (!!!), it takes your breath away. Thank goodness they’re young when they do those runs!

Shop, or Buy?

2008-04-11T13:28:00.000-04:00

Just another quick note to let you know about recent happenings in the Saline real estate market, and with a question: Do you Shop, or do you Buy?

What’s the difference?

Shopping means that you check out all of your available options and research until you conclude which choice is best for your needs. Then, you go out and buy.

These days, over 80% of home buyers do their shopping via the Internet. In years past, most home shoppers would dread having to drive around and look at many homes before making a decision. These days, buyers use the Internet to narrow down their home search choices to a few homes, which they then go out and see in person.

So, when it comes time to sell your home, you want to be absolutely certain that your home is marketed effectively and extensively via the Internet.

And you can be certain that will happen with me.

What are you waiting for?

Curb Appeal - Part 2

2008-04-09T11:56:00.002-04:00

A couple of weeks ago, I wrote about one of my favorite subjects regarding the selling of a home – Curb Appeal. It’s one of the easiest ways to improve your likelihood for selling your Saline, Michigan home this spring.

Curb appeal is the aspect of your home which a prospective home buyer can see from the curb or the street. It’s the first impression your home gives to anyone who approaches your home.
There are many aspects of curb appeal to consider, including the condition of your home (roof, trim, paint, clean windows, etc) and landscape (lawn, gardens, sidewalk(s), driveway, patio(s)). Today I’ll focus on another aspect of the “Curb Appeal” of your home – the overall landscape of the front and back of your home

If you’ve ever read the book by Steven Covey, The Seven Habits of Highly Successful People, you may recall his story about a home chore which he assigned to his son. Covey’s simple point – Clean and Green – has always stuck with me, because of its simplicity and practicality for selling your home.

Despite the “green” efforts we see sprouting up all over, and those who would tell you that you should save the environment by leaving your lawn go dormant over the summer, there is no denying that a reasonably green lawn in the summer gives a better first impression than a brown, crunchy lawn.

That doesn’t mean that you have to go out and purchase an expensive in-ground sprinkling system. Instead, at Lowe’s or Home Depot, you can buy an inexpensive, battery-powered timer which turns on and off your outside water faucet. Then just lay out your hoses and sprinklers to cover your front lawn (at the very least) so that your lawn stays reasonably green. If you want to get ambitious, lay down some general lawn fertilizer to give your lawn an extra “green” boost.

When you drive down many neighborhood streets and see the various landscape efforts on the front of many homes, you can draw some general conclusions. Many people spend a lot of money on an expensive landscape design and installation, and then just leave the landscape to become horribly overgrown. There is no better way to telegraph to buyers, when they pull up in front of your home, that you have not maintained your home well than by leaving your overgrown landscape in place when you list your home for sale.

In the competitive selling environment that exists today, you want every advantage to get your home sold. It’s well worth spending a few hundred dollars with an experienced lawn and garden landscape firm to properly prepare your gardens and shrubs for their best presentation. That few hundred dollars could mean several thousand dollars more in selling price, or bring about a sale many months sooner than would otherwise occur.

When it comes time for you to sell, be sure to ask your Realtor® to help you maximize the first impression of your home’s curb appeal. It can earn you a higher sale price and a likely faster sale.

Been Away for So Long

2008-04-07T10:51:00.000-04:00

There sure is nothing like an unplanned absence from the office to bring new perspective to the work we do as Realtors®!

In a blurred history of the past two weeks, here’s the “Cliff Notes” version.

I’ve written about my mother in the recent past, and her recent medical challenges. When she called me one morning about two weeks ago, complaining of general soreness and slurring her words, I jumped into action. Too many of my friends have had parents suffer strokes for me not to have recognized the symptoms immediately. I left everything at my office and raced over to take my mom to emergency medicine. In less than an hour of her phone call to me, she was hooked up to every medical contraption I’ve seen in an ER. Then the waiting began. Meanwhile, I had to arrange for home-health assistance for my dad, who’s nearly chair-bound. And so went about a week of my life, in a blur of hospital rooms, doctor consultations, home-health-care aides, and so on.

The new perspective I have for the work we do as Realtors is that you can still serve your clients in an awesome way, even in the midst of turmoil! I’m so grateful for the unselfish assistance of so many of my office peers, who stepped in to handle various deals in process. They have earned my undying gratitude.

So now begins the task of picking up my business – pulling the various fragments back together, and getting a general sense of the pulse of the market.

Never have I appreciated the joy of the work we do as Realtors® more so than today.

It’s good to be back!

Curb Appeal - Part 1

2008-03-26T08:22:00.002-04:00

Despite the residual snow on the ground outside – I know, it’s ONLY the end of March! – it’s time to start thinking about ways to improve your likelihood for selling your Saline, Michigan home this spring.

Curb appeal is the aspect of your home which a prospective home buyer can see from the curb or the street. It’s the first impression your home gives to anyone who approaches your home.

There are many aspects of curb appeal to consider, including the condition of your home (roof, trim, paint, clean windows, etc) and landscape (lawn, gardens, sidewalk(s), driveway, patio(s)). Today I’ll focus exclusively on only one aspect of the “Curb Appeal” of your home – the landscape as you approach your front door.

What is the condition of your front sidewalk? Is it smooth and level? Are there trip hazards – raised/sunken sections of the sidewalk?

Are the plants along the edge of your front sidewalk overhanging and interfering with a buyer’s walk to the front door?

Do you have a fresh “Welcome” mat outside your front door?

Are the windows on the front door, or to the side of the front door, clean and shiny?

Does the doorbell work?

I’ll always recall the sale of home several years ago, for the complete effectiveness of the curb appeal as we approached the front door.

As we approached the home, the sellers had installed, to each side of the sidewalk approaching the front door, a hanging flower basket. The metal pole holding the hanging basket on each side was shaped in the form of a half-heart. In other words, when you looked at the poles from a distance, you saw the form of a Heart outlined by the poles. The hanging flower baskets were full of vibrantly colored flowers. All in all, the setting was incredibly inviting. Once we were inside the home, the buyers (who already had a fabulous first impression of the home), fell in love with the interior, and immediately made an offer to purchase. Sadly, though, this example is more unique that you might imagine.

When it comes time for you to sell, be sure to ask your Realtor® to help you maximize the first impression of your home’s curb appeal. It can earn you a higher sale price and a likely faster sale.

Who Are We All Talking To?

2008-03-24T09:30:00.002-04:00

When you drive down the road these days, here’s what you’ll see the most:

Two out of three drivers are talking on a cell phone!

Who are we all talking to?

Is it my neighbors in Saline, Michigan all talking about the Real Estate market in their neighborhood? Is it an excited buyer talking about the sweetheart deal they just got on their new home? Are they calling a friend to join them for dinner at a local watering hole? Are they calling all their friends to b**ch about their property taxes?

Nearly every day, I watch my across-the-street neighbor back out of his driveway. As soon as he has his truck out on the street, he’s dialing his cell phone. By the time he gets to the stop sign at the end of the street, he’s happily gabbing away. What? He couldn’t talk on a land-line phone before he left? Or, are we all so craving for privacy that we have to escape to our cars to carry on a private conversation?

No wonder the plethora of “all inclusive” deals from the major cellular carriers. Apparently the 3000 minutes per month plan (that’s 50 hours each month on the cell phone) wasn’t enough! Judging from all the folks talking on their cells while driving, it clearly wasn’t enough!

There is a definite movement among our (nanny) governmental bodies, at all levels, to address the problem of distracted driving.

Folks, if we don’t get a handle on our need to constantly be holding a cell phone to our ears, that privilege will be taken away from us.

And then how shall we talk?

Ann Arbor's Field of 64

2008-03-21T17:57:00.000-04:00

The Ann Arbor News has taken the concept of March Madness to another level!

In yesterday's "Connection" section, we looked upon a familiar sight - March Madness brackets. Except, this one was a bit different.

What the News has done is take 64 great things about Ann Arbor, seeded them into 4 regions and 16 seeds, and matched them against each other.

The result? The greatest thing about Ann Arbor is Zingerman's.

Now, you may or may not agree with the ultimate champion - is there ever consensus agreement about the eventual NCAA basketball champion? This bracket will sure get tongues wagging on what was included and left out!

The other three in the final four? Football Saturdays, the Michigan Theatre, and the Art Fairs. Now, really, is there anything better about Ann Arbor than these final four?

Congratulations to Zingerman's!

Sweetheart Deals!

2008-03-21T15:15:00.001-04:00

Every so often, it’s important to give an example of what’s going on in the day-to-day marketplace in our area.

A repeat client, Corbin, had heard of some of the great deals in our marketplace recently, and he wanted in on the action. He called me to get an update on any “reasonable” bargains in his local marketplace.

We set up a search, using some unique criteria which I have established for determining which properties on the market really are “bargains”.

Corbin reviewed the list, and found a foreclosed property which fit his needs perfectly. We went to see it, and found it in reasonably good shape (for a foreclosure).

So here’s the details – Corbin buys a property for $150,000 which has an appraised value – even in our current market – of over $220,000. Think about that! He has just picked up a cool $70,000 in equity – all for a little paint and carpet. He’s getting a great home, at a fabulous price.

What are you waiting for?

Valleyview Saline Homes

2008-03-19T18:49:00.005-04:00

At this time, there are only two homes available for sale in the Valleyview Sub of Saline

1. 6931 Heatheridge, $289,000.
2. 6488 Hollowtree Ct., $299,000.

You can tour these two homes here.

If you'd like to see either of these two homes, call me at (734) 476-2063.

Read to Write

2008-03-19T08:57:00.003-04:00

Every once in a while, I like to veer off the course of all Real Estate, all the time. Today’s topic is just such a diversion for me.

It’s always been my impression that those who write well – and those who write for a living – are also likely to be those who read widely and extensively. There are some who are so gifted with the ability to write well that they may never read more than they write themselves, but those folks are likely to be few and far between.

While I’ve always enjoyed reading, it never was a priority for me. Other than the local newspaper (mostly my favorite writer in the Sports section), several Real Estate periodicals, and an occasional book (maybe 5 books each year), reading tended to end up in my “C” priority list.

So, in order to improve my ability to write, I set an ambitious goal for this year (2008). My goal this year is to read at least 50 pages in books each day.

As of mid-March, I’m averaging nearly 60 pages per day. Not bad.

I’ve even gone so far as to post on my Facebook profile both my goal and the books I’ve read (and am reading even now). Bold, but it sure keeps me motivated!

As I write this, I’ve just begun Leaves of Grass, by Walt Whitman. I’ll say right off the bat that I’ve never been one for poetry, so this book is a challenge for me. But, we grow stronger by meeting and beating our challenges. Some of verse can really hit me (“I project the history of the future” – think about this awhile), while others become just a jumble of words in my head. Still, I plow onward.

Mostly this year, I’ve read biographies. Andrew Carnegie (U.S. Steel), John D. Rockefeller (Standard Oil), J.P. Morgan (Investments),Edmund Burke (British statesman), Mark Twain, and Frederick Douglass so far. Yet to read – Einstein, Lincoln, Washington, Horace Greeley, Edison, Tesla, Henry Ford, and many others.

Some of the biographers have done an outstanding job of writing, as the text is riveting. Some of these works were a challenge, too. It has struck me that one of the more difficult challenges is to write a biography. It certainly helps that the subject is a fascinating historical figure. Above that, though, a crafty biographer weaves a narrative story of the life and times of the subject. Many of these books have carried me back in time, such that I was made to feel like I was walking alongside the subject during their lifetime.

The fascinating part of a biography, for me, is that you can “see” across the horizon of the subject’s lifetime over the course of a week of reading. You learn how the subject’s early life affected them throughout the rest of their life. You learn how they made lemonade out of lemons. You learn how they conducted themselves with family, friends, and associates – sometimes for the good, sometimes not! You also learn how they aged – sometimes surrounded by family and friends, sometimes terribly alone. Each of these events in the subject’s life is a teaching moment for my own life – again, sometimes for the good, and sometimes how NOT to live one’s life.

It’s been said that you learn from your mistakes, but that you can become brilliant by learning from the mistakes of others. Perhaps the flip side of this idea holds true, as well. You can also become a better person by learning how great people have conducted themselves and modeling that same behavior yourself.

Has all of this reading helped me to write well?

That’s really for you, the reader, to judge.

All this reading has certainly made it easier for me to write. When you read and absorb how others have assembled their thoughts into words, sentences, paragraphs, chapters, and entire books, it helps you to begin to do the same. You have to learn to crawl before you can walk. With the books I’ve read so far this year, it has felt like I had to begin as a world-class sprinter!

All this reading has also taught me to savor each day, whether filled with success or with challenges. It’s uncanny how you can read of an event in a biography, and then witness a nearly identical event in today’s world. Scary, too. Those who fail to learn by their mistakes are doomed to repeat them.

With each book I’ve read, I’ve kept a journal of notes. Sometimes it’s the way the author has developed an idea, or the way the words just seem to flow together. Other times, it’s a summation of an idea the author was trying to convey in their work. I captured that thought while doing my research for this post:

What if you could learn the success secrets of the greatest people who ever lived? You can.

The lives of the famous and the infamous have been recorded in biographies and are ready for you to read and research.

The lives of great government leaders, businesspeople and humanitarians are there. You will read about successes and triumphs. You will also learn how many times champions lose on their way to winning.

In reading biographies, you may come to the startling conclusion of how much greatness you possess. You may conclude, "Hey, I can do that." You can make your life significant. Biographies help show the way. You only have to take the action to go to the library, bookstores or surf the Internet.

So, friendly reader, will you be the judge of how my reading has impacted my writing this year?

Market Statistics for Saline

2008-03-17T09:16:00.007-04:00

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As you all know, I review our market statistics around the middle of each month.What I'd like to focus on this month is the overall strength of the market in, and around, Saline.

The first chart I’d like to review is shown below. I’ve tracked real estate activity for the Saline market since 1996. There is a definite seasonality to the market – strength in the summer, weakness in the winter. A reading above 25% is a “seller’s” market, while a reading below 20% is a “buyer’s” market.

It’s no surprise to learn that we have been in a “buyer’s” market in Saline since the end of 2004 – more than three years, now.

What’s intriguing about this first chart is the strengthening of the Saline market since October. What could be the cause of this?

This second chart (above) shows 2 lines. The top line shows the number of homes available for sale (listings) in the Saline area. The lower line shows the number of homes sold each month.

In answer to my question posed above (What could be the cause of this?), the strengthening of the Saline market since October is a direct result of fewer homes listed for sale. How could this make the market stronger? Well, with fewer homes competing for the available buyers, it’s more likely that any of the homes listed for sale will actually sell during the month. That’s what we mean by a strengthening of the market!

The final piece of the analysis of the strength of the Saline real estate market is the months of supply of homes presently on the market.

This table shows the “raw data” that makes up the charts shown above. On the far right hand side of this table shows the “Months Supply” in each price range. Rather than focus on any particular price range, it’s more helpful to understand the overall level of inventory of homes for sale.

As of mid-March, at the present pace of sales of homes in Saline, there are enough homes on the market to supply over 12 months of demand. This is down significantly since February, when there was nearly a 20 months’ supply of homes for sale. In the past few years, it’s been typical to have about 6 months’ supply of homes for sale, so our market is improving toward our average.

If you're looking to sell in this market, take heart! Call me!

The "Top Ten" Most Expensive Homes for Sale in our Area

2008-03-14T11:12:00.003-04:00

OK, this post is meant solely to gain your attention. Isn’t that what “Lifestyles of the Rich and Famous” was all about?

Here in Washtenaw County, we’re blessed with two great universities, as well as myriad employers. The economic diversity we have in Washtenaw County is amazing. Because of that diversity, we have some amazing homes. Here are the 10 most expensive homes for sale in our area (9 are in Ann Arbor, 1 is in Dexter) as of mid-March, 2008.

1. $6,750,000
2525 Country Club Rd., Ann Arbor
18,300 sq. ft., 9 BR, 10 ½ baths.
2. $4,000,000
2900 Delhi Rd., Ann Arbor
7918 sq. ft., 5 BR, 3 ½ baths.
3. $3,950,000
5388 Geddes Rd., Ann Arbor
6500 sq. ft., 5 BR, 5 ½ baths.
4. $3,600,000
3650 Daleview Dr., Ann Arbor
11450 sq. ft., 5 BR, 6 full, 2 half-baths.
5. $3,500,000
230 Corrie Rd., Ann Arbor
9000 sq. ft., 5 BR, 4 1/2 bath
6. $2,999,000
3019 N. Maple, Ann Arbor
15,185 sq. ft., 4 BR, 3 ½ baths
7. $2,775,000
5484 Meadowcrest Dr., Ann Arbor
14,543 sq. ft., 5 BR, 7 ½ baths.
8. $2,225,000
5800 Cobble Lane, Dexter
5631 sq. ft., 6 BR, 5 ½ baths.
9. $1,900,000
5270 Geddes Rd., Ann Arbor
2907 sq. ft., 2 BR, 2 baths
10. $1,850,000
330 Barton Shore Dr., Ann Arbor
4843 sq. ft., 6 BR, 5 ½ baths.

If you’re curious to see these fabulous homes, you can check them out here.

If you’d like to see any of these homes, call or e-mail me. Thanks!

Property Tax Board of Review

2008-03-12T10:21:00.003-04:00

For the past two days, I’ve been serving as a member of the Board of Review (BOR) for Lodi Township. For each of the past ten years, I’ve served the Township on the BOR on the second Monday and Tuesday of March.

The Lodi BOR consists of three members – all residents of Lodi township - myself, and two others. Until this year, one of our Board members was a long-time farmer in the township. Sadly, he passed away last year, and we missed him greatly at the BOR meetings this year. He was replaced this year by a real estate appraiser who lives in the township. Our third member is an attorney who specializes in commercial real estate. I bring “market knowledge” to the BOR. Working with these other BOR members has been a pleasure.

The function of the BOR is to hear resident’s appeals of the assessed and taxable value of their real property. Most of those who appeal are not “experts” in property value, nor are they expected to be. Many of them bring a passionate voice to their appeal. What we look for is evidence which supports the value that they place on their property. Sadly, most bring no supporting evidence, so they are less than successful in their appeal.

So, what would I like to see as a BOR member?

Ideally, I would like to see a fee-paid appraisal of the resident’s property, which supports their claim of value (presumably MUCH lower than the assessor’s claim of value). The cost of having an appraisal of your property begins at $350 and goes up from there, so most residents don’t go that far with their appeal.

Short of a fee-paid appraisal, I’d like to see a presentation of comparable properties to the resident’s own property. These comparables can come from a Realtor®, or from the resident’s own research – either on the internet, or directly at the Township offices. I know, I know, it’s very surprising to think that you could do research at the Township (or City) offices. The assessor WON’T bite your head off! Really! Most assessors enjoy discussing their work with residents.

So what kind of data should you get? By definition, a “comparable” property to yours would be a home of similar size, style, age, and location. Ideally, other homes like yours in the same subdivision will support your argument the best. If you have a 2-story home, and you bring only ranch homes as comparables, you have little chance of success. If you have a ranch, and you bring 3, 4, or 5 other similar ranch homes like yours, you have an excellent chance of successful appeal.

What if there are no recent sales of comparable properties? This is becoming a more frequent occurrence, as the number of home sales declines in our region. In this case, look for comparable properties which are currently offered for sale. If the asking price of the homes for sale is less than your taxable value, you have a strong argument in your favor.

I’d be happy to help you with your determination of value for your home in preparation for your Board or Review. I’m not a licensed appraiser, so I cannot offer you a “fee-paid” appraisal. What I can offer is an experienced opinion on your likelihood of success in your appeal. Call or write me.

Dan's Downtown Tavern, Saline

2008-03-10T19:13:00.006-04:00

Every town seems to have a “local” watering hole – you know the one: It’s not highly advertised, but all the locals know about it. If you’re not a local, you’d miss it.

In Saline, that would be Dan’s Downtown Tavern. It’s my favorite
place to eat out in Saline, and has been for many years. In fact, it’s
likely that I’ve eaten out at Dan’s more often than at all other restaurants in our area, combined. Yes, yes, I know – but it’s that good.

During the summer, I play golf. Not every day, mind you, but I enjoy getting out to play as often as I can. Most of the time, it’s an afternoon round of golf, followed by a visit to Dan’s.

OK, picture this: That first swig of draft beer after a round of golf. Can you just taste it, right now? That’s why I’ve visited Dan’s so often. Order up a 2-patty burger with sweet potato fries (say what? Try them, they’re great!) and you’ve got a great post-game meal.

So, if you’re looking for a comfortable place to eat in Saline, be sure to visit Dan’s. Here’s all the map stuff you’ll need to find it. Enjoy!

View Larger Map

Mortgage Foreclosure Timeline

2008-03-07T09:27:00.001-05:00

First Month Missed Payment: The first month that your payment is missed, your mortgage company is likely to contact you by mail and/or telephone to inform you of your delinquent status. A late charge is assessed on your missed payment.

Second Month Missed Payment: The second month that your payment is missed, your mortgage company is likely to begin calling the contact numbers that they have for you, in order to discuss why you have not made a payment. It is important that you not avoid their telephone calls. Try to stay calm on the phone, explain to them your situation, and what you are doing to resolve it. You still may be able to make one payment at this time to prevent yourself from falling three months delinquent.

Third Month Missed Payment: At this point, you are likely to receive a letter from the mortgage company stating the amount that you are delinquent, and that you have 30 days to bring it current. This is called your “Demand Letter” or “Notice to Accelerate”. If you do not pay the specified amount or make some form of arrangement by the date given, they are allowed at that time to refer you to foreclosure, or accelerate your mortgage. They are unlikely to accept less than the total amount due without prior arrangements. Foreclosure/Acceleration means that they forward your account to their Attorneys. You still have time to work something out with the mortgage company.

Fourth Month Missed Payment: Now you are usually nearing the end of the time allowed in your Demand Letter or Notice to Accelerate. If this expires and you have not paid the full amount, or worked out some arrangements, then you will be referred to their Attorneys. At this time, you incur all Attorney fees as part of your delinquency. The Attorney then schedules a “Sheriff’s Sale”, which is the actual date of foreclosure. The Sheriff’s Sale will be scheduled for approximately six weeks after the Attorney receives your file. You will be notified of this date by mail, along with a notice taped to your door. This is NOT a move-out date. The Attorney publishes a notice of foreclosure over four successive weeks in the local legal newspaper. After the first insertion on your property is published in the legal news, you have 4 weeks until the Sheriff’s Sale. Contact your lender NOW!

Sheriff’s Sale: You have up until the date of the Sheriff’s Sale to work out arrangements with the mortgage company or to pay the total amount owed (the reinstatement amount). At the Sheriff’s Sale, your house will be sold. An outside party may bid on your home. If no bids are received, the home goes back to the lender.

Redemption Period: If nothing is done to resolve the situation and the Sheriff’s Sale is completed, then you enter the Redemption period. The redemption period starts from the date of the Sheriff’s Sale. State law in Michigan requires that this period is not less than 30 days, and no more than one year. Most mortgages allow the homeowner six months to redeem the property with the lender/bidder, paying the amount owed plus interest and fees. If the property is over 3 acres, you may have a 12-month redemption period. You will be notified of your time frame on the same notice that states your Sheriff’s Sale date. This is still your time to reside in the home.

End of Redemption Period: If the homeowner has not redeemed the property, ownership is transferred to the lender or bidder. If the homeowner has not left, the new owner starts the eviction proceedings. An eviction hearing is held within two weeks, followed by a 10-day grace period for the former homeowner to vacate the premises. When the grace period ends, eviction is certified. Court bailiffs are notified, and they empty the premises. Any of your belongings remaining in the home are moved to the curb for disposal. The locks are changed, and you no longer may reside there.

So, You Want to Rent, Instead?

2008-03-05T13:49:00.002-05:00

In the Saline and Ann Arbor area, there are many different sizes and types of rental housing available to you. All you have to do is decide which kind you prefer. There are many positive and negative aspects associated with each and the type that is right for you depends on your preferences and desires. To make this process of figuring out what type of building you want to rent, here are some of the benefits and downsides associated with the various rental properties:

Single-Family Houses

Single-family houses are free-standing rental properties that are habited by one person, family, or group of renters. Single-family rental units are very much like owning your own house.

Positive Aspects: As you do not share this rental space with any other tenants, single-family homes offer the most amount of privacy.
Negative Aspects: Many of the amenities that you may expect from a larger rental unit are not available.

Duplex/Triplex/Quad

Positive Aspects: You can expect similar conveniences as with a single-family home when renting a duplex, triplex, or quad unit. These rental units offer greater privacy and independence.
Negative Aspects: However, like single-family homes, these rental properties may not offer as many amenities as larger rental buildings are able to provide. Furthermore, you must also consider that you do have neighbors that are closer to you than what would be in a single-family home.

Small Apartment Buildings

Positive Aspects:Small apartment buildings offer more amenities (generally) than single family homes or townhouses, while simultaneously providing a living situation that you share with a small number of other tenants.
Negative Aspects: You will have more neighbors in a closer proximity than you would if you were renting a single-family home or townhouse. Furthermore, you may not have access to as many amenities as you would have if you were to rent in a larger rental property.

Medium Apartment Complex

Positive Aspects: Medium apartment buildings will often provide many of the amenities expected from large apartment buildings, but shared with fewer people.
Negative Aspects: You will have many neighbors that you must consider when living in a medium apartment building.

Large Apartment Complex

Large apartment buildings are comprised of numerous rental units and house the largest number of tenants under one roof.

Positive Aspects: You can generally expect a greater amount of amenities and luxuries from a larger apartment building than you might from smaller rental properties. Many have on-site management and 24- hour emergency maintenance, in addition to other amenities like swimming pools, clubhouses, and fitness centers.
Negative Aspects: You are surrounded by numerous other tenants and must co-exist with others peacefully. There will generally be more noise and activity in the building, which occurs naturally with the larger population of tenants.

In general, the smaller the rental unit with the smallest number of tenants the greater privacy and a more independent living situation. However, many of these smaller units are not able to offer the same variety of amenities provided by the bigger apartment complexes.

So, if you’ve decided to rent in the Saline or Ann Arbor area, you’ll have a large number of options. If you have questions about any of the material covered in this post, please let me know. I’m always happy to answer your housing-related questions.

Michigan Women's Basketball

2008-03-02T19:31:00.002-05:00

On Sunday, March 2, 2008, the regular season ended for the University of Michigan Women’s basketball team. For my daughter and I (season-ticket holders), it was a bittersweet day. The bitterness came from the outcome of the game, a 48-63 loss to the Golden Gophers from Minnesota. The sweetness came from the terrific turn-around from last season. This year’s team finished with a 16-12 overall record, and a 9-9 record in the Big Ten. When you consider that the team won only three Big Ten games COMBINED in the past two seasons, you understand the magnitude of the change.

The make-up of this year’s team was nearly the same as last year’s. Only one senior graduated last year – Kelly Helvey (a terrific player). Thus, this year’s team had only one freshman member – Veronica Hicks (who has shown tendencies to be equally terrific).

So how did a team that struggled last year under a different coaching staff turn it around? They did it with passion. The new head coach, Kevin Borseth, brought a new drive to his team. From the outset this season we (my daughter and I) saw it. Coach Borseth came in with the bona-fides as a great coach in the Women’s game. His team bought into it, and as the season progressed, the fans who regularly came to the games, bought into it as well. The symbiotic relationship between a team and its core group of fans was born.

When Coach Borseth was introduced last spring, he said something that struck me. He asked us to look around at Crisler Arena, and envision the lower bowl being FULL. I could picture it immediately. Then he told us to get our tickets (or, in my case, to renew my season tickets) while we still can. He was THAT confident that his team would perform such that more and more fans would show up and cheer on his team.

On January 13 of this year, Michigan hosted the Lady Spartans from Michigan State. And, what do you know? The lower bowl was nearly full!

It’s just another example of someone bringing about what they think about. Coach Borseth had already pictured the lower bowl being full of fans for his team, and it happened.

For a True Blue fan like me, it was a sweet victory that day against MSU.

I’m sure that most of you sports fans have already seen Coach Borseth’s passion on display on ESPN and other media, following a heartbreaking loss to Wisconsin on February 28. But, in case you haven’t, here’s the video.

See what I mean? That’s passion about your job!

Go Blue!

Congratulations to the 2007-2008 Michigan Women's Basketball Team!

Our Long Winter of Discontent

2008-02-29T10:40:00.002-05:00

It’s snowing again. And so continues our long winter of discontent here in Michigan.

So far this winter in Saline and Ann Arbor, we’ve had a lot of snow. But by the end of February, most of us are thinking about Spring. Our typical winter gives us about 42” of snow. Global warming, anyone?

While the snow is beautiful, it tends to make driving more difficult – especially when buyers want to get out to see homes. So what happens? We run low on salt available for our roads. Meanwhile, Detroit sits on top of huge salt mines. Go figure.

The largest city in Michigan has become a national joke due to a mayor with complete disregard for the station of his office. The will of the voters? The mayor claims to “be about the work of the people.” Maybe the judiciary will have something to say about that. Still, the city serves as the butt of jokes on late-night talk show monologues, and Michigan suffers further in public image.

So what are we to do on snowy evenings? Order out for Pizza, and swizzle some adult beverages to forget the problems going on all about us in Michigan. But wait! Now we find that pizza prices will be rising substantially. What’s the reason? Oh, wait! I know! We have such a demand for corn (for our E-85 vehicles) that the wheat crop is declining sharply. Man, those ethanol vehicles sure taste great!

Last Sunday, as many local Realtors® prepared for their open houses later in the day, we pick up the local newspaper to catch up on the news. There, above the fold on the front page, is an article about foreclosures remaining on a record pace in our County. Thanks, newspaper! That sure encouraged buyers to get out to visit open houses. Nice way to scratch the back of one of your largest advertising revenue sources. We’ll think kindly of you as we wad up your publication to serve as kindling in our fireplaces while we dine on pricy pizza. Besides, the future of Real Estate advertising lies on the web. Goodbye, newspaper!

Meanwhile, the general populace cries out for some good news – in our long winter of discontent.

Lockbox? What's that?

2008-02-27T08:28:00.005-05:00

When your home is listed for sale with a Realtor®, other Realtors® will be interested in showing your home to their prospective buyers. It is best that you are not at home during any showing. If you’re in your home during a showing, the prospective buyer will feel uncomfortable about the intrusion into your home, even if it was cleared by their Realtor®. The best way for a showing to occur is for you to allow the placement of a secure lockbox on your home.

In the Saline and Ann Arbor area, there are a couple of lockbox options which most Realtors® use on a regular basis. The first option is an electronic lockbox (which most Realtors® refer to as an “iBox”).

iBox Supra electronic KeyBoxes are used on over 2.3 million homes nationwide.

The iBox works as follows:
1. It usually hangs on your front door knob, or a secure home feature near the front door (perhaps a water faucet or a porch railing).
2. One of your front door keys is kept inside the lockbox.
3. Realtors® will open the iBox using their own security device. The security device must be updated each day by the Realtor®, so you are assured that only a Realtor® can open the lockbox.
4. After the showing, the Realtor® will replace your home key inside the iBox, so it is available for the next showing.

The next option is a combination lockbox. There are several types of combo boxes – alphabetic rotating dials, numeric rotating dials, and numeric push buttons.

Supra - Push Button Portable Lockbox -- Push-button key boxes make access easier, Codes are easily changed, Great during escrow for appraiser, termite, repair, etc. Trusted by real estate agents for over 40 years.

The combo boxes work as follows:
1. As with the iBox, it usually hangs on your front door knob.
2. One of your front door keys is kept inside the lockbox.
3. Realtors® will open the combo box using the combo provided by the listing Realtor®. Note that once an agent knows the combo for the lockbox on your home, they can re-enter at any time. Note also, though, that no right-minded Realtor® would ever jeopardize their professional status by an un-authorized entry of your home.
4. After the showing, the Realtor® will replace your home key inside the iBox, so it is available for the next showing.

So when it comes to putting your home up for sale, be sure to ask your Realtor® about the lockbox they will be using on your home.

What Every Seller Should Know - Part III

2008-02-25T10:11:00.001-05:00

Once you have an accepted offer on your home, there are a few things that you should know. For the most part, these are general ideas, applicable to most forms of real estate. Check with your Realtor® to be sure.

1. The Earnest Money Deposit

When the prospective buyer writes an offer to purchase your home, they are requested to provide to their representative agent an earnest money deposit (EMD). The amount of the EMD can give you, the seller, an idea how serious the buyer takes the offer. The more the EMD, the more serious the offer. In general, and EMD of less than $1000 is considered to be not a serious offer, but your Realtor® can advise you how to proceed with the offer.

2. Clouds on the Title

The title to your property is recorded in the public records. A “cloud” on the title to your property is a charge against your property which has been filed in the public records. Examples of common clouds are unpaid property taxes, mechanic’s liens (an unpaid bill from a contractor who did work on the property), and unpaid Federal taxes.

The buyer will expect you to provide a clean title to the property, so you will be responsible for removing any clouds. Your Realtor® and your attorney can assist you.

3. Contractor’s Inspection

Before the buyer prepared their offer on your property, they reviewed the “Seller’s Disclosure Statement”. Still, the buyer will likely put a contingency on their offer that your home be subjected to, and the buyer accept the results of, a thorough inspection by an experienced home inspector. In many cases, the inspector is a former builder. If there are any “surprises” which result from the inspection, you may need to bring about some repairs to your property. Your Realtor® can best advise you here.

4. Pest Inspection

In addition to the contractor’s inspection, your buyer will likely insist on a pest (termite) inspection. While a contractor’s inspection might kill the deal (if major problems are discovered with the home), it is unlikely that a pest infestation will kill the deal. Most likely, the buyer will insist that you, the seller, provide a “clean bill of health” for the home prior to closing the deal. In the worst case, this would likely take the form of a total fumigation of the property.

5. Real Estate Transfer Tax

On January 1, 1995, the State of Michigan increased the real estate transfer tax, taking the total transfer tax from 55 cents per $500 value of the sale to $4.30 per $500 value of the sale. As the seller, you pay this transfer tax when the title transfer is recorded in the public records.

Conclusion

I hope that this series of three reports has been helpful to you in understanding what you must know when you sell your Washtenaw County home.

If you have any questions about any of the topics covered in these reports, please let me know. I’m here to serve you.

What Every Seller Should Know - Part II

2008-02-22T09:55:00.001-05:00

While your your home is up for sale, there are a few things that you should know. For the most part, these are general ideas, applicable to most forms of real estate. Check with your Realtor® to be sure.

1. Curb Appeal

Curb appeal is the term used for the first impression a prospective buyer has of your home. Approach your home from both directions on the street and the sidewalk. What do you see? Is it what the modern home buyer wants to see? Is the lawn mowed, and are the trees and hedges trimmed? Are your outside windows clean and shiny?

2. Inclusions / Exclusions

When you list your property for sale, you must determine what you want to include and exclude from the sale. If the removal of an item will damage the property, it is considered a fixture, and would otherwise be included in the sale, unless you specify otherwise. For example, if you have a stained glass window in the dining room that is a family heirloom, or if you have a flower or shrub that is special to you, you may want to exclude it from the sale.

On the other hand, personal property is an item that may be removed without any detriment to the property, so you may take it without specifically excluding it. For example, if you want to leave your washer and dryer for the new owners, you may specifically want to include them in the sale.

3. Seller’s Disclosure Form

When you sell your home, you must prepare a “Seller’s disclosure statement” form. This statement is your disclosure of the condition of, and information about, your property. As the seller, you are not expected to have any expertise in construction, architecture, engineering, or any other specific areas related to the construction or condition of the improvements on the property or the land. You disclose the information with the knowledge that even though it is not a warranty, you make the representations based only on your own knowledge.

4. Agency Disclosure

All real estate licensees act as agents or sub-agents of the home seller or buyer. The subject of agency could fill a volume, so this guide will only briefly cover the main issues.

In Michigan, there are three primary forms of agency in real estate. The “seller’s agent” is the most common – as the licensee represents the home seller’s best interests. The “buyer’s agent” has become equally common, as the licensee looks out for the best interests of the home buyer, perhaps at the expense of the seller. The “dual agent” is the licensee who lists your home, and then represents the home buyer, as well. A dual agent must be disclosed to both parties, who agree in writing, their consent that the dual agent is looking out for both parties’ best interests.

5. Effective / Efficient advertising

Effective means “doing the right things”, while efficient means “doing things right”. When it comes to advertising your home for sale, do you know the difference? Your Realtor® does, and can design an advertising campaign for your home which will result in direct interest from qualified buyers.

6. Financing Options

Many prospective buyers for your home don’t know much about financing – how or where to get the best mortgage. Your Realtor® knows just about all there is to know about financing. The Realtor® knows how to work closely with all kinds of financial institutions, and knows their methods and requirements. The Realtor® can also get the buyer to the right lender for the specific financing needs. Did you know that one local lender has 22 different financing options for the purchase of a home?

7. Qualifying the Buyer

How do you feel about discussing your finances with a stranger? About the same way that most home buyers do, too. Your Realtor®, as a third party, has been specifically trained to ask just the right questions to determine if the buyer is qualified to purchase your home, without unnecessary prying into the buyer’s financial situation.

8. Environmental Issues

In Washtenaw County, there are at least four environmental issues that you must be aware of when selling your home:
1. Do you have an underground oil or gas storage tank? If so, you may have to dig it up before you sell.
2. Do you get your water from a well? Has the water been tested?
3. Do you have invisible radon gas in your basement?
4. Does your furnace, water heater, or gas stove give off carbon monoxide (CO) gas?

Each of these four issues will be reviewed during the contractor’s inspection (covered in part III – my next post).

9. Closing the Deal

How good a salesperson are you? Getting a reluctant and indecisive buyer to make a decision will be the test. Saying just the right thing, and knowing when not to say anything, can make a big difference. Successful selling is an art and a science. And since buying a home is the biggest investment most of us ever make, highly sophisticated sales techniques are demanded. This is where your Realtor’s® specialized training and experience really pays off.

What Every Seller Should Know - Part I

2008-02-20T09:24:00.001-05:00

Before you think about putting your home up for sale, there are a few things that you should know. For the most part, these are general ideas, applicable to most forms of real estate. Check with your Realtor® to be sure.

1. Selling is a 4-step process

A B C D
Sale <-> Offer <-> Showings <-> Competitive Price

A: In order to get a sale “A”, you must:
B: Get an offer. In order to get an offer “B”, you must:
C: Get showings. People do not buy a home without seeing it,
at least once (usually twice). In order to get showings “C”, you must:
D: Have a competitive price. Your Realtor® can help you price your home
competitively, while earning the top dollar for you. If your price is not competitive, prospective buyers will not even look at your home, since you cannot be objective about the price of your own home, and they do not want to insult you with a low (but fair) offer, when there are other, more realistically-priced homes available.

2. The Seller’s Job

Your job, as the home seller, consists of two critical tasks:

A. You must price your home competitively, and
B. You must “stage” it well (in other words, make it look its best for prospective buyers).

If you, the seller, do your job well, your Realtor® will be more able to do their job well – get your home sold for the most money in the fastest time possible.

3. The Market Analysis

A Comparative Market Analysis (CMA) gives you a range of value that a ready, willing, and able buyer may pay for your home in a competitive market. If you price your home above the CMA range, you risk ever getting a sale (based on the 4-step process described above). If you price your home in the CMA range, you are doing your job of pricing your home competitively.

4. How Much Is Your Time Worth?

Selling a home looks easy. But if you stop to add up all of the time, effort, and money put into advertising, phone calls, showings, paperwork, negotiating an offer, dealing with lenders, title companies, building inspectors, obtaining public records, and shouldering the liability of the sales process, you quickly find that the Realtor® earns their commission at a fair wage.

5. Third-party Negotiators

When an offer is received on a home, there is likely to be several thousand dollars between your asking price and the offered price. Should you stick to your guns? If you do, you may lose the sale. If you don’t, you may cheat yourself. This is likely to be a time of compromise, of give-and-take. But knowing how much to give, and whether to give at all, demands knowledge and negotiating skill. The fact is that you are in an awkward position to best advance your own interests.

At this point, your Realtor’s® advice is invaluable. As a third party, your Realtor’s® objective viewpoint will be reassuring to the buyer. And as a seller, you’ll have an experienced professional in your corner to bargain for you.

6. Cooperating Brokers

Did you know that there are over 1100 licensed Realtors® in the Ann Arbor Area Board of Realtors®? When you list your home for sale with a cooperating broker, you immediately gain not just the listing broker and their agents, but all those other 1100 salespeople working to help sell your home. When you consider the commission paid, how could you hire 1100 experienced salespeople to work for you at the same total compensation?

7. Improvements That Will Pay Off

There are two primary improvements that will have an immediate positive impact on selling your home – the condition of the kitchen and bathrooms.

In both cases, make sure the rooms are clean and freshly painted – preferably white, or a slight off-white. Make sure the faucets work, with no drips. Make sure the sink drains do not leak – and, by all means, do a spotless clean-up job in the cabinet under the sink. Clean the windows and curtains, and clean the light fixture. It might help to put in a brighter light bulb, too.

What it means to be an Associate Broker

2008-02-18T10:08:00.001-05:00

When you see the term “Associate Broker” after my signature, what does that mean?

In each Real Estate sales company, there can be one, and only one, Broker. In my case, the Broker is “Real Estate One”, a Michigan corporation. Yes, an inanimate corporation can be a Broker – Michigan allows such a designation. For anyone else at Real Estate One who wishes to earn their Broker’s license, they must submit to being an “Associate Broker” of the primary Broker.

An Associate Broker is the term for the type of real estate license which I hold in Michigan. A real estate license, of some type, is required in the State of Michigan if you are to be involved in the business of real estate sales. Anyone can sell their own house without a real estate license, but to be involved as an agent of others in the sale of their real estate, a license is required.

So what does it take to become a real estate Broker?

According to the requirements of the Michigan Department of Labor & Economic Growth
Bureau of Commercial Services - Licensing Division, Board of Real Estate Brokers and Salespersons, the following are the requirements to become a Broker / Associate Broker:
1. Submit proof of 90 clock hours of approved classroom hours in real estate. Nine of the 90 clock hours must be instruction in civil rights law and equal opportunity in housing. The 90 hours are in addition to the hours required to obtain a real estate salesperson's license.
2. Submit proof of three years of real estate experience. Experience gained while licensed as a real estate salesperson is verified by past/present employing brokers.
3. Successful completion of the Broker’s Examination.
4. Candidates receive a Broker’s license application with their passing exam scores.
5. Once licensed, the licensee needs to complete at least 6 hours of continuing education each year. Thus, during the regular three-year renewal period the licensee will need 18 hours of courses.
6. There is no reciprocity between Michigan and any other states. All applicants must meet the full Michigan requirements.
7. Both real estate broker licenses and salesperson licenses expire on October 31st. They are valid for a three-year period. An agent may renew an agent license between November 1 and December 30 by paying a late penalty in addition to the regular renewal fee. They may not legally practice until the fees are paid and continuing education courses are completed.

What does this mean to you?

A Broker’s license demonstrates a long-term commitment to the business of real estate sales. With the additional experience (3 years) and education (90 hours) beyond just a salesperson’s license, you are assured of gaining the most advantage in your real estate experience. As I often say, “Let my experience make yours better”.

Be sure that your agent is an Associate Broker.

What's That Smell?

2008-02-15T09:48:00.004-05:00

Oooh, that smell! Can you smell that smell?

Other than being a great song from Lynrd Skynrd, it’s not something we, in the Real Estate business, ever like to hear.

One of the things my parents taught me, from an early age, is that you never get a second chance to make a good first impression. That said, can you imagine a worse first impression of any house than a bad smell when entering? Yuck!

The possible sources of bad odors in a house is endless – far more than I could ever list in this article. I’m reminded of the gist of a definition from the Supreme Court – You can’t really define it, but you know it when you see (smell) it! Here’s a “short list” of possible bad odors you can leave in your home, which will turn off most buyers:

1. Cooking odors – especially regional spices.
2. Animal odors – food, dander, litter box, you get the picture.
3. Smoking – both legal and illegal materials.
4. Mold – more on that later.

Let me relate some experiences (each of these with different buyers) I’ve had in my years in the business:

A. I recall showing a house in the country, which was occupied by tenants. Evidently they liked living in the country for law enforcement reasons, as the house reeked of freshly-smoked marijuana! They must have stubbed out the joint right before we got there. Wheeeeee!!!!

B. Another house smelled so terribly of dog (it must have been a “water” dog, like a retriever) that the buyer and I both coughed terribly upon entering. We tried to make it into the next room, hoping the odor would dissipate, but no luck. That house stunk so bad, even a dog lover wouldn’t touch it!

C. In another house, the buyers and I arrived soon after dinner. We coughed and sneezed at the spices in the air – throughout the whole house! It wasn’t just the kitchen. When I called the other agent to report what we had found, I was told that they had prepared their special (insert country name here) “death sauce”. Lovely! Right before you want to show your home to potential buyers? Brilliant!

D. You can never predict your pets. I’ve lost track of how many times I’ve walked past a freshly-used litter box. It’s like the cats know that strangers are about to enter their home, so they like to leave a present for the guests. Yikes!

Earlier I mentioned mold. We’d all like to think that we don’t have mold in our homes, but the sad fact is that it’s everywhere. Given the increasing use of products like Tyvek in home construction these days, there is plenty of moisture available in most homes to breed a nice crop of mold.

I found a nice checklist from the government about problems with mold, and copy it here below:
Here are 10 things to consider regarding mold:

1. Potential health effects and symptoms associated with mold exposures include allergic reactions, asthma, and other respiratory complaints.
2. There is no practical way to eliminate all mold and mold spores in the indoor environment; the way to control indoor mold growth is to control moisture.
3. If mold is a problem in your home or school, you must clean up the mold and eliminate sources of moisture.
4. Fix the source of the water problem or leak to prevent mold growth.
5. Reduce indoor humidity (to 30-60% ) to decrease mold growth by: venting bathrooms, dryers, and other moisture-generating sources to the outside; using air conditioners and dehumidifiers; increasing ventilation; and using exhaust fans whenever cooking, dish washing, and cleaning.
6. Clean and dry any damp or wet building materials and furnishings within 24-48 hours to prevent mold growth.
7. Clean mold off hard surfaces with water and detergent, and dry completely. Absorbent materials such as ceiling tiles, that are moldy, may need to be replaced.
8. Prevent condensation: Reduce the potential for condensation on cold surfaces (i.e., windows, piping, exterior walls, roof, or floors) by adding insulation.
9. In areas where there is a perpetual moisture problem, do not install carpeting (i.e., by drinking fountains, by classroom sinks, or on concrete floors with leaks or frequent condensation).
10. Molds can be found almost anywhere; they can grow on virtually any substance, providing moisture is present. There are molds that can grow on wood, paper, carpet, and foods.

For more information on mold, visit the EPA’s mold site.

Open House - Sunday, Feb. 17, 2008

2008-02-14T11:07:00.005-05:00

202 Commons Ct., Saline, MI 48176

You're invited to visit this terrific ranch-style condo in the Austin Commons of Saline.

I'll be hosting an open house on Sunday, Feb. 17, 2008 between 2-4pm. You're welcome to visit during that time.

This is truly "no steps" living. You have your own attached garage, and a full basement, if you need the space.

The kitchen features light oak cabinetry, and overlooks a quaint eating space. You also have access to your own private patio.

I look forward to meeting you on Sunday!

Should I Go For Sale By Owner?

2008-02-13T11:24:00.003-05:00

When it comes time to sell your home, one of your options is to sell your home yourself. Since it’s always a good idea to consider the “flip side” of your decision, let’s look at your “for sale by owner” (FSBO) from the perspective of a buyer.

Buying FSBO real estate has its own particular problems and opportunities. Dealing with an uninformed seller who thought he knew enough to handle everything by himself can be frustrating, but it can also be very profitable if you are prepared. First you need to understand the FSBO seller.

People try to sell a house on their own for one primary reason: To save the sales commission. Unfortunately for them, they usually underestimate the cost and complexity of going it alone. They'll often get frustrated and tired of the process, and be ready to drop the price and be done with it. As a buyer, if you can help them solve their problems, your reward can be a good price on a good investment. Just keep the following in mind:

1. A seller isn't an agent. You have to be more careful in what you say and ask. Avoid negative comments about the house. Like it or not, the truth is that it's difficult to get a good deal if the seller doesn't like you.

2. Sellers think they're being smart. If you encourage that belief, they'll be more open to your offer. If they have a good idea, tell them so. It's not unethical to make people feel good about themselves when negotiating.

3. FSBO real estate has often been on the market a long time. Sellers are usually tired of the process, and want it to be done. This means you'll get a better price if you are willing to close quickly and easily.

4. Sellers usually don't have a plan. They don't know where to close, where to buy a title policy, where to keep an Earnest Money deposit, etc. Have simple solutions ready for all these problems. If you walk the seller through the process while letting him feel in control, you'll both be happier.

5. Skip over problems and return later. After a seller has invested more time with you in a negotiation, he'll be more inclined to give you what you want.

6. Sellers have often spent more than anticipated. Classified advertising and other costs have already eaten into their imagined extra FSBO profit. You may want to be generous in negotiating the many closing costs - as long as you get your price and/or terms.

Realtors will tell you that most houses "for sale by owner" net the seller less than those sold by an agent. By the time a seller realizes this, it's often too late to recover his money and time spent. At this point, he usually just wants to get the thing sold as easily and quickly as possible. If you help sellers with that, you can get a good deal on FSBO real estate.

What does it mean to be a GRI?

2008-02-11T11:44:00.000-05:00

When you see the letters GRI as one of my professional designations, what does that mean?

Developed for members of the NATIONAL ASSOCIATION OF REALTORS® and offered through State REALTOR® Associations, the GRI designation is obtained by attending a specific, intensive series of a minimum of 90 hours of classroom instruction, covering subjects in contract law, professional standards, sales and marketing, finance and risk reduction. The subject matter has been chosen to educate Realtors® about local, state and national real estate practices that affect them and their clients. GRI courses are taught by leading real estate professionals from around the country.

In today’s competitive business environment, Realtors® (and their clients) need more than just motivation and initiative to succeed, they need the advantage of the education received in the GRI program.

The Graduate REALTOR® Institute (GRI) designation indicates to buyers, sellers and other real estate industry professionals that I have made the commitment to provide a high level of professional service to my clients by securing a strong educational foundation.

The REALTOR® Institute is more than twenty-five years old and has graduated thousands of REALTORS®. According to data in the 2003 National Association of REALTORS® Profile, only nineteen percent (19%) of all REALTORS® have earned the GRI designation.

Why Choose a REALTOR® With a GRI designation?

Buying property is a complex and stressful task. In fact, it's often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated.

New technology, laws, procedures and the increasing sophistication of buyers and sellers require real estate practitioners to perform at an ever-increasing level of professionalism.

So it's more important than ever that you work with an agent who has a keen understanding of the real estate business. The GRI program has helped the best and the brightest in the industry achieve that level of understanding.

GRIs are:
· Nationally recognized as top performers in the real estate industry
· Professionally trained
· Knowledgeable
· Dedicated to bringing you quality service

A GRI can make a difference

When you see the letters "GRI" after an agent's name, you can count on receiving the knowledge and guidance you need to make your transaction go smoothly. In short, you can count on getting the best service available from a real estate professional.

Don't you deserve the best?

I earned my GRI designation in 1997. Since then, I have taken courses to earn additional professional designations. Each year, all Realtors® in Michigan take a minimum of 6 hours of continuing education. All this training and education is always approached with the basic theme – how will this benefit my customer?

So when you’re looking for a Realtor®, be sure to ask if they are a graduate of the Realtor institute (GRI).

OK, I've been Meme'd

2008-02-08T09:15:00.000-05:00

OK, I’ve been meme’d by Missy Caulk, my nearby neighbor in Ann Arbor, MI. This happened a couple of days ago, but being the “by the rules” kind of guy that I am, I’ve stayed with my existing blogging schedule for the week. So, now I have the time to respond.

If you don’t know what a meme is, think of “tag, you’re it”. Meme rhymes with dream.

The rules are that I am to share 7 things you might not know about me. If you want to know the subject matter for these 7 things, you’ll have to visit my blog on ActiveRain.

So, here goes:

1. I’m an avid golfer. Being in this line of work (Realtor), it doesn’t allow for me to get out to play as much as I’d like. Still, any time on the golf course is a good time for me. My handicap index is around 11, and Radrick Farms is my home course.

2. Ever since I was a kid, I’ve been fascinated by insects. Back then, I put my insect collection in the 4-H fair each summer. There is a moth in the Michigan State collection which I caught in my parent’s back yard in Ann Arbor.

3. Outside of real estate, my primary goal for 2008 is to read at least one book per week – so, 52 books for the year. So far, I’m on track, having just finished my 5th book of the year. My favorites are biographies. You know, you learn from your mistakes, but you can become brilliant by learning from the mistakes of others.

4. Back in college (Michigan, ’81), I had a friend who owned his own airplane. He called me one sunny Saturday morning in the spring and invited me to go flying with him. Taking the controls mid-flight, it was a thrill that I’ve never forgotten. When my kids ask about what it’s like to fly, I just tell them that it’s like driving in 3-D.

5. Between my junior and senior years in college, I visited a friend in Colorado for the summer – he was overseeing the construction of a home for his parents. While there, we climbed Mt. Sopris, at 12,951 feet. If you’ve ever been to Aspen, then you’ve seen Mt. Sopris, as it dominates the skyline just south of Glenwood Springs, on the way to Aspen.

6. For my 30th birthday, my wife and I celebrated in Freeport, the Bahamas. We went snorkeling – beautiful turquoise water, and the fish! Amazing!

7. When my son, Trevor, was very young, we went to a book signing given by Bo Schembechler. Trevor sheepishly approached Bo and told him that they shared the same birthday – April 1. Bo ruffled Trevor’s hair and asked “Do you know what that means, young man?” Trevor nervously shook his head. “It means that you’re going to be GREAT!” Trevor was beaming for days afterward. When Bo passed, Trevor understood the loss at a very deep level.

Don't Buy a Home?

2008-02-06T09:01:00.000-05:00

Don't Buy a Home.

What? Are you kidding?

As a Realtor®, my job is to help people to buy or sell their real estate. When someone wants to hire me to solve their real estate needs, I am very gratified.

But, sometimes it’s better for my client to NOT buy (or sell) a home. How so?

You've probably heard all the perks about buying a house and how it's the centerpiece of the American Dream. But the American Dream is less about owning a house than the change it brings about in your lifestyle.

As a Realtor®, I want you to be ecstatic when buying a home. With an approach like that, it means that there are times when I recommend to clients that buying a house isn't the right way to go yet, particularly when the financial risk of keeping your home takes away from the enjoyment of it.

Here are five times when I counsel clients to wait on buying a house.

1. You're uncertain about your job.

Having a stable income is paramount in ensuring that your home doesn't turn into a financial burden, and almost everyone needs to work to bring in that money.

But if your company is considering layoffs, or moving their headquarters — or you're considering a career change — you may be forced into selling or renting out your home in short order. Doing so is time-consuming and costs money.

Generally, if you have to sell a home within five years of buying, you’ll be lucky to get away at a break-even. I’ve had clients having to bring funds to the closing when they sell, rather than walking away with a check for their proceeds.

You may be mentally prepared to sell your house quickly, but the market may not be so kind, and you might have to take a large loss in order to do so.

2. You have bad credit right now.

When you take out a mortgage to buy a house, your lender charges you interest every month for the privilege, but when you have bad credit, your lender will charge you a lot more.

Why? Because people with bad credit cost lenders money by not paying promptly or not paying at all. And what they charge you may end up being several hundred dollars a month! Bad credit is any FICO score below the national average 720. But be of good cheer! With a few months of "good behavior" you can increase your FICO score and save yourself all that money.

3. You're already in a lot of debt.

I not only want you to be ecstatic after buying a home, I also want you to be able to keep it for as long as you want to. The total of a lot of student loans, credit cards, car payments, etc.: all of this not only hurts your ability to buy a house but also your ability to keep it.

The challenge is that if you take on more debt in the form of a mortgage, you may take away your ability to pay off other more expensive debt. At that point, you're basically paying a lot of money for money you no longer have — a lose-lose scenario.

For people in this situation, the rule of thumb is to pay off your debt with the highest interest rate first and be careful taking on new debt.

4. The only way you can afford the house is using a “creative” mortgage.

Can you imagine a world where everyone had to buy a house using only cash on hand? Very few people would own a home if the world were like that.

Lenders know this and have come up with a number of loan types (they call them products) that are designed to help people get into their dream houses. The most notorious of these loans is the option ARM, sometimes called a "pick a payment" mortgage. The possibility of negative amortization from this loan means you pay less monthly but end up owning less of your house every month too.

I would never do business with someone who recommended one of these loans to my clients, and I recommend you don't do business with anyone who tries to sell one to you.

5. You don't have (at least) some reserves after your downpayment and closing costs.

Buying your home is only the first step. The freedom that comes with home ownership also comes with additional costs like property taxes, special assessments, home maintenance and repair work, none of which were applicable when renting.

I'd argue that if you're stretched to the point where you have zero savings left over to take care of unforeseen expenses after purchasing your home, you risk a lot of unnecessary stress, losing your house or having it fall into disrepair.

The amount you have in reserve doesn't have to be huge, but a couple month's worth of your mortgage in a readily available form like a high-yield savings account, or even stocks, can ease your mind.

Purchasing a house is a major financial decision that stretches the finances of many families, but there's a difference between having to pack your lunch versus risking foreclosure because of a bad month.

There are a lot of folks who want to you stretch to buy a more expensive house than you need or one sooner than you might be comfortable with. My real estate advice is geared so that you're in a position to own and enjoy your home for a long time.

What It Means to be an e-Pro

2008-02-04T09:41:00.000-05:00

When you see “e-Pro” as one of my professional designations, what does that mean?

e-PRO Certification is an online training program offered by the National Association of Realtors® to certify real estate professionals as Internet Professionals.

Now, as an “internet professional”, having the e-Pro designation does not mean that I spend all of my time working on the internet. The internet is a tool which the e-Pro uses in their business to serve their customer’s needs. You can do many things to buy or sell a home using the internet, but nothing can replace the ability to actually visit the home you want to buy or sell.

The Connected Consumer has very different expectations than offline consumers and dealing with them effectively requires a different approach. The e-PRO Certification course guides students through completing a Technology Plan of Action for their business and introduces them to many techniques for evaluating and using Internet tools.

e-PRO Certification is not only about technology. The e-PRO Certification Program establishes a baseline of online competence, and it also introduces its students and graduates to the best aspects of Online Community...the Internet is about the power of people connecting with people.

I earned my e-Pro designation in 2004.

Since then, my curiosity about the internet has only grown, and is always centered around the basic theme – how will this benefit my customer?

There are so many ways that I’ve grown my arsenal of marketing tools since earning my e-Pro designation, including my own website (so buyers and sellers can learn about my service), floor plans and virtual tours of my listings (so buyers can preview a home before driving over to see it), mobile e-mail and text messaging (for instant access), and blogging (so buyers and sellers can learn a little bit about who I am and how I work).

So when you’re looking for a Realtor®, be sure to ask if they are e-Pro certified.

We Hold These Truths

2008-02-01T10:20:00.000-05:00

OK, I have to get something off my chest!

We live in the land of the free and the home of the brave. Lately, though, it seems that we want less of each – less freedom, and certainly less bravery. For example, we are willing accomplices as we allow our local, state, and federal governments to trample on our freedoms of land and property ownership. Remember the words of the Declaration of Independence (emphasis added):

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

As a Realtor®, my primary interest has to do with our freedoms as it pertains to real estate – land, and improvements on the land. As a former president of our local Board of Realtors, I know well the Preamble to the National Association of Realtors – Code of Ethics (emphasis added):

Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership.

So, what have you been up to?

Lately, I’ve been doing some work on behalf of my clients, which will hopefully save them some money. Specifically, I’ve been preparing estimates of (present) market value for my clients’ homes, and comparing the estimates with the taxable value (as determined by the local taxing authorities). In some cases, market values are still well above the taxable value. In many cases, though, market values have fallen below (sometimes, significantly below) the value upon which my client is paying property taxes. The next step is for my clients to appeal their taxable value during the upcoming opportunity within their local taxing authority. Needless to say, my clients are quite happy to learn that they may have a way to lessen the burden of property taxes that they pay each and every year.

Income and Expenses

In this great country, we all have the freedom to earn whatever level of income we desire. We also have the freedom to do with our income that which we wish to do (within the bounds of the law and of our ethics). That is, after we have paid our taxes.

I don’t know how it is in your household, but I’ll tell you how it is in mine. Every year, about this time (tax prep time), we draw up a new budget for the coming year. We first tally our income, then list (and prioritize) our known fixed expenses (including taxes), our planned savings (you know, “pay yourself first”), and finally our discretionary expenses. As we reduce the income line by each line of fixed expenses, savings, and flexible expenses, we have to STOP when we run out of income. Anything on our list beyond when we run out of money becomes a “wish list”. At some times during the year, we may re-prioritize our listed discretionary expenses, depending on needs. But when the money has run out, we just stop spending on discretionary items. We don’t look to our employers (in my case, my clients) and say “Uh, we’ve run out of money, so we need to take more from you”. Can you imagine the response that would get?

It goes without saying that our governments – at all levels, sadly – do not budget the same way that my family does. No, it seems that our elected officials are either unable or unwilling to prioritize spending in any way. Goodness knows, that would expose them to the harsh realities that some people might be hurt by where their “pet” projects actually fall on the scale of urgency of need. At all levels, our governments routinely run out of money to spend – there is never enough!

Our governments turn to us, the so-called “silent majority”, to help them make up the differences between their income (in other words, the taxes we are ALREADY paying) and their desired spending.

A Howard Beale moment

Frankly, I’m tired of this practice, and, like the character of Howard Beale in Network, “I’m mad as he** and I’m not going to take this anymore”.

A pebble here, a pebble there…

Our elected officials first turn to property taxes to fund their shortfalls. Remember, “Under all is the land”. With the annual increases in our property taxes (as I found during my research on behalf of my clients), we’re slowly letting the land under us be taxed away from us.

Next, our elected officials turn to “special assessments” to fund even more “pet projects”. We hear the same refrain each time – “on an average home, valued at $200,000, the increase for this assessment will ONLY be $25 each year. I don’t know about you, but $25 here and $25 there, and pretty soon, you’re talking about real money. And so goes another few pebbles of “under all is the land”.

The words of Thomas Jefferson, written more than 230 years ago, still ring true today. Jefferson anticipated that governments would eventually try to become all-powerful potentates over their subjects, so he made clear that the power of government is derived from the consent of the governed (meaning US). That’s why I stated earlier that we are willing accomplices as our freedoms are taken away.

So how does this all tie together?

A few years ago, a terrific book was written which touches on this important subject. The title? The PRICE of GOVERNMENT: Getting the Results We Need in an Age of Permanent Fiscal Crisis, written by David Osborne and Peter Hutchinson. The authors recommend a process for governmental budgeting not unlike what I do with my family.

As you can imagine, the book fell on deaf ears within the governmental ranks. I mean, come on! What do you mean we ran out of money? We’ll just “tax ‘em” some more!

It’s time to make sure our elected officials, at every level, understand our anger and frustration over their (apparent) disregard of basic home economics. Balance your (profligate) spending with your income (the taxes that WE pay). Tighten your (overhanging gut) belt. Prioritize what is important and make sure the critical stuff is adequately funded (uh, that would begin with our security). Cut out all the “fluff” – even if that means a diminishment of your (precious) power of authority.

Do you get it?

People - remember Howard Beale!

How long are you willing to let the pebbles underneath you be picked off?

HOA - Whoa!

2008-01-30T10:05:00.000-05:00

What the heck is an HOA?

It is an abbreviation for Home Owner’s Assocation, which Wikipedia defines as “the legal entity created by a real estate developer for the purpose of developing, managing and selling a community of homes.”

But what is it, really?

I’ve never lived in a place where I was under the auspices of an HOA, so I cannot speak with direct experience. I can only relate what I have learned through experience, both good and bad, on behalf of my clients over the years.

On the good side…

An HOA can protect the value of your property by establishing and maintaining a uniform set of property conditions for your neighborhood. That’s good, in case you get a neighbor who does something with their property which reduces the value of the surrounding properties. For example, if your neighbor wanted to put up a really tall antenna for their amateur radio operations, many HOAs would preclude that. Who wants to look out their back window and see a tall tower, and the associated guide wires to keep it standing straight?

And, many HOAs have terms in them which would make it difficult to run a home-based business when you have many visitors each day. Who wants a “commercial” operation right next door in their own neighborhood? This doesn’t mean you cannot have a home-based business, only that you have to be careful about the volume of traffic it will generate at your home.

On the bad side…

An HOA can sometimes prevent you from doing something which is otherwise good. For example, many HOAs preclude the use of clotheslines or clothespoles in your back yard. Given the concern over energy usage these days, the ability to save some electricity by hanging your washed clothes out to dry makes sense. It’s good for the environment, and it leaves your clothes with a great “fresh” smell! So, why not allow it?

Many HOAs also have terms in them which prevent the use of fences in your yard, (unless required by governmental ordinances, such as around a built-in pool). When it comes to pets, the only option seems to be with the “electronic” fences, which many pet owners see as cruel to their pets. In such a case, a small fenced-in dog run may be a good option, but how to bring it about?

How do you change things?

In many cases, an HOA is run by a board of directors made up of your neighbors. Most HOAs have terms in them which define how changes can be made to the rules and regulations. With sufficient “yea” votes from your neighbors, you can bring about a change in the rules.

If you’re ever in question about your HOA, I’m happy to help understand a situation. I’m not an attorney, so I cannot give legal advice. If it involves any legal interpretation, I would be happy to refer you to a local real estate attorney for advice.

A Car Wash Tale

2008-01-28T09:32:00.000-05:00

Back in November, a blog auther (Doug Quance) whom I follow posted a fascinating piece about a car wash. So how does this relate to selling a home in today’s market? Read it here to find out:

There’s a lesson in all this, I promise you.

In a transitional part of Atlanta, there now stands a brand spankin’ new car wash. It used to be a Burger King, but that closed years ago… and after demolition, this lot sat vacant for several years.

Fast forward a few years, and a sign went up announcing the construction of the car wash. That sign was up for at least a year in advance of the car wash actually being built… so on this busy street - there was NO question that EVERYONE in the area knew a car wash was coming.

So a few weeks ago, they opened for business - all bright and shiny - and offered a grand opening special of $5.99 to wash a car. They had a guy holding the sign out at the street to make sure everyone knew they were open and that a car wash was only $5.99.

Then, the following week, the sign guy was still out on the street - waving the public in - but this time, his sign stated “$4.99″ - instead of the previous week’s “$5.99″. Hmm… maybe they’re making it up on volume, who knows?

Another week goes by, and now the sign guy is holding a sign stating “$3.99″. Do you see a pattern here? Good. You’re paying attention. Because there is one.

The car wash still does not really have any customers that I can see. And I’d be willing to guess that the owners are starting to panic. After all, they probably spent a million dollars building this place.

So here’s my analysis and how it relates to real estate:

The car wash owners obviously realized that the market did not accept their initial price - no matter how much promotion they had done… and they responded with price adjustments.

Home sellers should take note of this market economics fundamental.

However, what the car wash owners have failed to realize is that two miles down the road is a well-established car wash that has been there for over ten years… and they have a $3.00 car wash. So - unless they add more value to their proposition - the public will continue to reject their offer.

And home sellers should not miss this message, either.

As long as your home does not compete in the marketplace, you will not get any takers. And why should you? There’s a ton of competition out there.

So it will be interesting to see what the car wash owners are going to do next. I am sure that they feel like they “need” to get a certain price (just like some home sellers) but whether or not the market agrees with that price is another thing.

So maybe the guy down at the car wash gets it…

Or maybe not.

Folks, if you’re looking to sell your home in this marketplace, realize from the outset that it will not be easy. Gone are the days when buyers will “at least take a look”, and even further gone are the days when “they can at least make an offer”. No, in today’s market, if your home doesn’t offer some incredibly compelling reason for a buyer to even take a look, you have no chance.

Listen to your Realtor. The car wash guy gets it!

About Home Inspections

2008-01-25T10:34:00.000-05:00

Once your offer to purchase has been accepted, a few things must happen relatively quickly, including the home inspection by an inspector hired by the buyer. A home buyer has a period of time, as outlined in the purchase and sales agreement and generally 7-10 days, to have the home inspection performed and then notify the seller of any unsatisfactory results.

There can be several parts to a home inspection, including the general home inspection, well, septic, radon and environmental testing. Depending on the property, the market and your experience in home buying, you may want all or none. I always recommend home inspections, no matter the market or the buyer’s experience. These are the typical inspections:

General Home Inspection. The inspector will:

Evaluate the physical condition: the structure, construction and mechanical systems.
Identify items that should be repaired or replaced.
Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
The inspector may also test for radon in air, if you request.

Well Water. Homes may either be on public water or well water. If there is well water, the inspector will:

Test for bacteria in your drinking water and the presence of radon in water, among other things.

Septic. Homes can either be on public sewer or an individual septic system. The inspection is performed by licensed septic inspector, rather than the general home inspector. A septic inspector will evaluate:

The use of the current septic system.
The condition and performance of the septic system.

Environmental Tests. A home buyer may elect to have a variety of environmental-related tests performed, including lead paint, mold, asbestos, and UFFI (Urea Formaldehyde Foam Insulation). Some home inspectors will test for these items but they may also refer you to other companies. Here are some things to consider if you are thinking about having these tests performed:

Expect lead paint in a home built before 1978.
Mold is present in every home but people with allergies or with diminished immune systems should be more cautious.
Asbestos was a common material found in insulating products and is commonly found in wrapping on pipes and water heaters, in floor tiles, shingles, etc. It can be found in many older homes.

How Much Do Home Inspections Cost? Costs for home inspections vary, depending on the size and type of property as well as the number of tests being performed. Expect to pay somewhere around $300 -$500 and up.

Also keep in mind that the inspector(s) may suggest that you ”investigate” certain items further. For example, an inspector may note that there is a foundation crack. He/she will likely recommend that you have a structural engineer analyze the crack for you and determine if you should be concerned or not. This would be an additional expense.

How to select a home inspector

Check with your agent for referrals. While not all qualified inspectors belong to the American Society of Home Inspectors (ASHI), a national organization that enforces a code of conduct and practice standards, their website, www.ashi.org., has a referral service. Your inspector should be licensed to conduct home inspections and should have training and or experience in building and construction standards as well as experience as a home inspector. Here are some questions you should ask:

Ten Questions to Ask Your Home Inspector.

1. What does your inspection cover?

The inspector should ensure that their inspection and inspection report will meet all applicable requirements in your state if applicable and will comply with a well-recognized standard of practice and code of ethics. You should be able to request and see a copy of these items ahead of time and ask any questions you may have. If there are any areas you want to make sure are inspected, be sure to identify them upfront.

2. How long have you been practicing in the home inspection profession and how many inspections have you completed? May I have some references?

The inspector should be able to provide his or her history in the profession and perhaps even a few names as referrals. Newer inspectors can be very qualified, and many work with a partner or have access to more experienced inspectors to assist them in the inspection.

3. Are you specifically experienced in residential inspection?

Related experience in construction or engineering is helpful, but is no substitute for training and experience in the unique discipline of home inspection. If the inspection is for a commercial property, then this should be asked about as well.

4. Do you offer to do repairs or improvements based on the inspection?

Some inspector associations and state regulations allow the inspector to perform repair work on problems uncovered in the inspection. Other associations and regulations strictly forbid this as a conflict of interest.

5. How long will the inspection take?

The average on-site inspection time for a single inspector is two to three hours for a typical single-family house; anything significantly less may not be enough time to perform a thorough inspection. Additional inspectors may be brought in for very large properties and buildings.

6. How much will it cost?

Costs vary dramatically, depending on the region, size and age of the house, scope of services and other factors. A typical range might be $300-$500, but consider the value of the home inspection in terms of the investment being made. Cost does not necessarily reflect quality. HUD Does not regulate home inspection fees.

7. What type of inspection report do you provide and how long will it take to receive the report? May I see a sample report?

Ask to see samples and determine whether or not you can understand the inspector's reporting style and if the time parameters fulfill your needs. Most inspectors provide their full report within 24 hours of the inspection.

8. Will I be able to attend the inspection?

Being there during the inspection is a valuable educational opportunity, and an inspector's refusal to allow this should raise a red flag. Never pass up this opportunity to see your prospective home through the eyes of an expert.

9. Do you maintain membership in a professional home inspector association? Are you bonded and insured?

There are many state and national associations for home inspectors. Request to see their membership ID, and perform whatever due diligence you feel is appropriate.

10. Do you participate in continuing education programs to keep your expertise up to date?

One can never know it all, and the inspector's commitment to continuing education is a good measure of his or her professionalism and service to the consumer. This is especially important in cases where the home is much older or includes unique elements requiring additional or updated training.

Renegotiating the Contract. Many buyers attempt to use the inspection to renegotiate the purchase price, which aggravates many sellers. However, if a buyer did his/her due diligence when putting in an offer, then there shouldn’t be too many huge surprises at the inspection and the price should hold. If there are any big surprises, then it is perfectly acceptable for the buyer to request the seller repair the items, reduce the selling price or ask for money in lieu of repairs being made. Getting the seller to actually do the repairs is completely out of the buyer’s control.

As-is Sales and What if the Seller Refuses to Make Repairs? If you’re buying a house as-is, that means that the seller is not making any warranties about the condition of the property. However, that does not mean the seller will not necessarily make repairs or offer to reduce the sales price of the property if a problem is discovered that is unexpected.

For example, a buyer can see for himself/herself that a furnace is aged and that it may have to be replaced. However, if that furnace is only a few years old, the buyer could reasonably expect that furnace to be functioning. Upon inspection, the buyer discovers that the furnace was not installed properly and needs modifications. The buyer can certainly request that the seller make repairs, although the seller may still refuse.

If a seller refuses to make repairs you requested, you have three options:

Continue to negotiate and possibly give them an ultimatum - if you don’t do X, we’re walking. Only do this if you really are willing to walk away from the deal.
Accept the property as it is and buy it, knowing that you will have to make the repairs yourself.
Terminate the contract - you are within your rights to terminate the contract as long as it’s done within the time-frame specified in the contract.

I hope this information is useful to you in your home-buying and home-selling journey. If you have questions about anything in this post, please contact me.

Open House - Sunday, Jan. 27, 2008

2008-01-23T09:56:00.000-05:00

Sunday, January 27, 2008
2-4pm
3177 Asher, Ann Arbor

You’re invited to visit this great condo in the Berkshire Creek development in Ann Arbor. Contemporary flair, designer décor, and inviting colors greet you upon your entry. The location is fabulous – walk to Panera Bread, Whole Foods, and Barnes & Noble. You’re only minutes to the UM and EMU campuses, the UM, VA, and St. Joseph medical centers, Gallup Park, and the Freeways. There are great views in all seasons, with a huge deck for summer entertaining. The garage is a 2-car in-line design. I look forward to seeing you there!

How To Decide When To Buy Or Sell

2008-01-21T10:16:00.000-05:00

True or False: The media decide whether you buy or sell a home.

That sounds ridiculous, even insulting. But there’s no doubt that there is a psychological component to buying a house — and that a lot of negative publicity about the housing market can have an effect on whether you will buy, sell, or sit.

There has been some speculation that the media is usually responsible for the way the market goes. When people hear that the market is going to crash, they freak out and stop buying, which, in turn, causes the market to crash (imagine that!).

In my opinion, much of what happens in the national economy is shaped by the self-fulfilling prophecy of the national media headlines (USA Today, the New York Times, ABC, NBC, CBS, etc.) When you read, day after day, that we’re headed toward a recession, isn’t that what you’d do?

And yet, a review of history shows that the greatest fortunes are begun when “blood is running in the street”. Isn’t that what we have right now?

I’ve written previously about how our local market has fared these recent few years. Prices are down 15-25% from their peaks in 2003-2004. Has this ever happened before? Certainly not in our lifetimes – and, frankly, isn’t that all the history that most of us ever bother to know?

In the world of the major stock markets, when prices decline over 20%, it is what is described as a bear market.

Well, the bear has certainly been growling in our local area! (Either that, or a few ferocious Wolverines – who, by the way, have been known to chase away bears in the wild).

Back to the stock market: When prices decline by 20%, wise investors know that it’s time to take notice for buying opportunities. Wall Streeters use the term “contrarian investing”.

When the stock market value of a company falls below the underlying value of the assets of a company, wise investors swoop in and buy up all the stock they can handle. At worst, they will own assets of a company, which they could later sell off to recover their investment. That’s what’s known as a sure thing.

If ever there was a sure thing in the local real estate market, IT IS NOW!

Oh, sure, you can call me wacky, or a Pollyanna, or worse.

And that’s when I’ll show you how the current prices of homes in our local market have declined below their underlying value.

How so?

Talk to a builder (if you can find one who is still in business – is blood running in their streets? Hmmm…..?). Ask them if they can even build a home right now for less than $125 per square foot. They’ll say “No Way!” – not with the ever-increasing costs of concrete, lumber, copper wiring, drywall, asphalt shingles, and everything else that goes into a new home.

So, if a builder can’t build a new home today for less than the prices of some newer (3-5 year old) homes on the market, haven’t we hit our “underlying value”?

Contrarian investors are moving into our local markets in a big way. Shouldn’t you get on board?

Back in 1980, a local newspaper included a headline “Will the last person leaving Michigan please turn out the lights?” Those were pretty bleak times in Michigan – I know, I was there. Doesn’t it remind you of today?

The average price of a home in Ann Arbor in 1980 was in the $60,000s. Last year – 2007 – admittedly, a bleak year for our local real estate market – the average price of a home in Ann Arbor was in the $240,000s.

That’s a pretty healthy increase, huh?

Trust me on this. Five years from now, a few wise people will be chuckling all the way to the bank when they sell off the investment properties they bought in 2008.

Will you be one of them?

Friday photos

2008-01-18T08:38:00.001-05:00

Well, it's been a while since I've posted any Friday photos, so here goes:

This first photo was taken mid-morning following a super-cold night. We had some fog the night before, so the fog froze to the trees. I believe it's called "hoar frost". The whole area was covered in this frost - it was beautiful!

This next photo is from the same morning, before the sun burned through the low clouds. This decorative grass sits just off the edge of my back-yard deck.

This next photo was taken on the morning following a big snowstorm (January 2, 2008), and shows a scene looking up my neighbor's driveway. The snow started out really heavy and wet, then lightened up into powdery snow. There was no wind in the morning, so the snow stuck to all the trees for a while.

The one really good thing about a heavy, wet snow is that it's great for packing and making things. So, we made a sledslide in our front yard, complete with iced-down walls (to keep the sled on course) and a nice jump in the road-side ditch. Sadly, though, the sledslide lasted only a few days, as temps climbed into the 50s and the whole thing melted! Oh, well! It was a lot of fun for the kids, while it lasted!

Of course, you couldn't have a winter photo without a snowman!

Keep smiling!

It's the BIG SALE!

2008-01-16T09:32:00.001-05:00

Now that the Holidays are past, retailers everywhere are fretting about how to get customers into their stores. In every newspaper around the country, there are full-color advertisements from retailers of every sort, exhorting us to visit their “Big Sale”.

A review of our market conditions here in January, 2008, reveals that the same thing is occurring in the Real Estate market, as well. Only, you’re just not seeing the big headlines.
So, let me be among the first in this area to trumpet the following headline:

It’s The Big Sale!

Seriously, never before in our history has there been such a big sale in the Real Estate market. When has there ever been this many homes available for sale? Never!

Just like in the retail business (when a retailer orders too many of a particular item, they have to lower prices to “move the goods”), the Real Estate market has been experiencing the same thing in our area.

There are many indications that overall prices of homes have come down 15-25% in our region since their peaks of 2003-2004. This is consistent with the retailers’ approach, as we Realtors are trying to “move the goods” for our clients. How? By offering some of the best homes at the best prices we’ve seen in many, many years!

On top of all of this, interest rates continue to be incredibly low, on a historical basis. Just this week, you could get a 30-year, fixed-rate mortgage, for an INCREDIBLE 5.75%.

So, never in our history have we had such a confluence of positives for the Real Estate market – plenty of homes to choose from, fabulous prices, and rock-bottom interest rates.

So, WHAT ARE YOU WAITING FOR?

I know, I know. It’s the economy, stupid (to quote a past President of the United States).

But, back to the matter at hand:

Here’s a chart of the market conditions for Saline, as of mid-January, 2008:

The top line on the chart shows the number of homes available for sale in the Saline area, going back to 1996. The number of homes for sale began to climb in 2004, and is only now showing some signs of a retreat. So, act fast to be sure to get the home you really want, while it’s on the market now.

The lower, blue line on the chart shows the number of homes which actually have sold each month, again going back to 1996. There is a remarkable resiliency in our market, which means that you can’t go wrong buying a home in the Saline market.

I’ve got many other charts like these, including areas like Ann Arbor, and the entire Washtenaw County marketplace. Let me know if you’re interested in a particular area, and we’ll talk.

By the way, I’ll be hosting an open house this coming Sunday, January 19, from 2-4pm, at 1513 White Street in Ann Arbor. It’s an affordable home in the Burns Park school district, priced at $225,000, with 3 bedrooms and 2 full baths. There’s also a walk-up basement, and a 2-car garage. You are welcome to visit!

The Best Referral Compliment I've Ever Received

2008-01-14T20:12:00.000-05:00

What a way to start my day on a Monday morning!

I received this letter from a client, in response to a phone call to him last week. He is the Sales manager for his firm, which will go unnamed. His message was sent to his sales staff. This is his exact e-mail:

A word about growing your business:

The other day, I got a phone call from my Realtor. How is it that he is "my Realtor"? Really, he's a salesman who helped me with a large purchase five years ago. He's "my Realtor" because he made my purchase easy, because he is likable, and because he does good follow-up. I get a card, a call, or an e-mail from him every 90 days, plus one on either my birthday or the anniversary of my purchase.

Would you qualify to have your customer call you "my car expert"?

When my Realtor called on Wednesday, he got right to business. "The reason I'm calling," he said, "is that I've been looking at whether I can help save you some money on your property taxes."

Do you capture your clients' interest effectively when you call them?

"Based on your State Equalized Value, the government taxes your house as though it were worth $XXX,000. I assumed that, based on market conditions, your house might be worth less than the taxable value, maybe even less than you paid five years ago."

Do your clients believe that you think about their best interests?

"But when I did the research, it turns out that your house is worth $20,000 more than the taxable value - a good bit more than you paid. Your house has done very well."

How do you go about complimenting your clients on their wise choices?

I took the bait. "Wait a minute," I interrupted, "Now, I'm not in the market, but you're telling me that if you were going to list my house today, that you'd list it for $YYY,000?" (That number would represent a profit for me over what I paid). "Yes," my Realtor replied, "that's exactly what I am saying."

Can you draw you clients into the market today, or do you wait and hope that they'll call you?

"The interesting thing," he continued, "is that when I have run the analysis for other clients in Ann Arbor, they've seen market values below the taxable values - so they can make an argument to the assessor for a lower tax bill. And, it means that there are some buying opportunities right now, especially in homes that are a next step up from yours. Would you like me to email you some of those opportunities?"

How often do you ask clients for a sale?

I said yes. Of course, he emailed me before we got off the phone!

Do you follow-through quickly and completely?

"Before I let you go, just one other question," he asked, "I know that you're not in the market at the moment, but I do have a house rather similar to yours - do you know of anyone, maybe somebody you work with, who is looking for a house like yours?"

Are your clients comfortable providing you as a referral?

If you're looking for a house, or looking to market yours, allow me to mention that my Realtor is Vance Shutes. He's an associate broker with Real Estate One, in the Briarwood Circle office. His office number is 662-8600 x430 and his email is vls@provide.net

Make sure you mention that I sent you - he has a referral program.

Will your clients be your advocate? Do they know about your referral program?

I won't answer the phone if someone calls and tells me that they're checking in. I won't listen if they want to know how they can help. But when a salesman calls me for a reason; with a message; because he can show me how he can help - suddenly I am interested.

Do you have a plan when you make the phone calls scheduled in Rey-Rey, or do you just go through the motions? Are you working smart and growing your business?

Like I said, this is the finest letter I've ever received!

Rental Property - a Primer

2008-01-14T09:32:00.000-05:00

If you’ve decided that you’re tired of the ups-and-downs of the stock market, and are bored with a simple savings account, you might be a candidate to become a landlord. Not everyone has what it takes to be a landlord, but those who do, may find that owning rental property can be a way to build wealth.

Once you've made the decision to buy rental property, your real work begins. Finding a profitable rental property usually takes time, connections and plenty of research. There’s a lot I can write about on this topic, so today I’ll just cover the basics. Here's what you need to know to get started:

In Our Area:

In the Saline area, you’ll have a more limited market for rental property than you would in a larger community like Ann Arbor. In general, in Saline, you’ll be looking at single-family homes, 2- or 3-unit homes, small apartment buildings, or commercial property (office or retail).
In the larger community of Ann Arbor, with the influence of the University of Michigan, you’ll find more “student rental” properties near the campus, in addition to the types of property you’ll find in Saline.

Before You Buy:

Before you buy a rental property, you should have a good idea how long you plan to own it. The longer you plan to own the property, the more you'll probably need to invest in maintenance, repairs and improvements. If you're only planning to own a property for five years or less, you'll probably want to avoid making any major improvements unless you're sure you can recoup the cost with a higher sale price.

An Example:

For me, I made the decision to buy single-family homes for the long term. Here’s a photo of one of my rentals in Saline.

My thought regarding a single-family home like the one pictured above is that “they’re not building any more like these”. Think about it. When you “come of age” and move out of the home you grew up in, where do you go first? Likely to an apartment. If you don’t want to be in an apartment, and want a home instead, your first rental home isn’t going to be a Taj Majal.

The Basics:

So, find a 3-bedroom brick ranch, like those built in the 1950s. It seems that most communities have neighborhoods like this. In Saline, you’ll find these homes around the Pleasant Ridge school, and near the Liberty School. In Ann Arbor, you’ll find these homes near Abbot Elementary, and around Scarlett Middle School.

Be sure the home has at least 1 ½ bathrooms. A garage is nice, but not required. A basement is essential, especially if it is finished (for more living space). Remember, this type of rental property is only going to have about 1000 square feet, so a small, but growing, family will really appreciate a finished basement, and be more likely to rent.

Risks and Rewards:

The primary risk associated with a single-family rental is that a vacancy means NO income from the property. With a duplex or three-unit, you would at least have income from the other unit(s) to assist with your mortgage payment. Not so with a single-family rental. So, you need to be sure that you can handle the monthly payment for a while when the property is vacant.

The upside of a single-family rental is that the increase in value is not entirely tied to the income the property produces. In general, an income property is only as valuable as the income it produces. If you have a 3-unit home, the increase in value will only come at the same rate as the increase in rents. With a single-family home, you can always sell it as a single-family home, should the market for those type of homes really BOOM in value. In the meantime, you can collect your rents, and take advantage of the significant tax benefits.

In a future post, I’ll build on this primer, so you can gain some confidence that you can do this too!

I Know the Neighborhood

2008-01-11T10:19:00.000-05:00

When it’s time to buy or sell a home, you want someone who knows the neighborhood where you live. I grew up in Ann Arbor, and have lived in Saline since 1985, so I know those neighborhoods the best. I’ve sold homes from Monroe (south) to Brighton (north), from Novi (east) to Jackson (west), and have covered nearly everywhere in Washtenaw County. Here are my statistics since 2000:

Ann Arbor - 26 homes sold, 27 buyers bought
Saline - 24 homes sold, 17 buyers bought
Ypsilanti - 11 homes sold, 23 buyers bought
Western areas - 7 homes sold, 10 buyers bought
Other areas - 5 homes sold, 14 buyers bought

All together - 73 homes sold, 91 buyers bought

So when you evaluate a Realtor, be sure to ask how well they know your neighborhood!

Why Are My Property Taxes So High?

2008-01-09T10:16:00.000-05:00

The taxes on your “real” property (what the Assessors call your home) are based on the taxable value of your home and the millage rate for your area.

I’ve written previously about the taxable value of your home.

If you are interested in local millage rates, here is the definitive source for 2006. As soon as the 2007 publication becomes available, I will publish it here. Washtenaw County property tax rates begin on page 146.

The millage rate on which your taxes are based is made up of a composite of the amounts charged by the state, county, township, intermediate school and school district. Any requests for millage increases are voted on by us, the voters.

So what will happen to property taxes in 2008?

Could there be a silver lining to the increasing number of foreclosures in Michigan? Maybe. Maybe not.

Last year, The State of Michigan changed the laws allowing foreclosures to be taken into consideration in property tax assessments. Previously the depressed sales were disallowed as aberrations.

The State Tax Commission also changed rules allowing sales studies to be based on one year of sales instead of two. The two year ruling had helped to keep assessments low during periods of rapidly increasing sales prices, but it also kept assessments high during periods of rapidly falling prices.

For more information read the article from the Detroit Free Press.

Combined, these two changes could have a significant impact on assessments, but most home owners who have been in their homes for more than a few years will not see any difference in their taxes because of the current cap on property tax increases.

The State of Michigan also provides a website where you can get an estimate of your property taxes. I haven’t tried this website, so I can’t attest to the accuracy of their estimate.

Finally, here’s a different way of looking at the value of your home.

Back to School

2008-01-07T09:58:00.000-05:00

The Christmas holiday is over, and it’s time for the kids to return to school.

I grew up in Ann Arbor, attending Newport Elementary (now the Rudolf Steiner School), Forsythe Middle School, and Huron High school. Looking back on the experience now, it’s understandable why the Ann Arbor public schools are so highly rated. I had some great teachers (and a few clunkers, too), and learned enough to prepare me for the University of Michigan.

Now, I make my home in nearby Saline, where my children have attended the Saline Area schools. In many ways, my kids’ experience here in Saline reminds me of my own experience in Ann Arbor. There have been many outstanding teachers, and the curriculum has been well organized and challenging at each grade level.

You couldn’t go wrong with a choice of either the Ann Arbor or Saline public schools!

Having also helped buyers in Chelsea, Dexter, Manchester, Milan, Whitmore Lake, and Ypsilanti, I know the value of great schools in the choice of your new home.

If you’d like to compare any of the districts in our area, Great Schools provides an on-line view of how our schools rank, in the state, and in comparison with neighboring districts. It’s one of the free sites on the web offering school info.

Do you need a haircut?

2008-01-04T09:26:00.001-05:00

How many barbers are there in the United States?

It’s funny what you remember, isn’t it?

When I was interviewing for a job during my senior year in college (Michigan, 1981), one of the interviewers asked me that opening question about barbers immediately after introducing himself.

I was momentarily stunned, but recovered quickly enough to retort “Why, do you need a haircut?”

He laughed, and the interview proceeded nicely, although I didn’t end up taking their job offer.

So here I am 25+ years later, enjoying life in Saline. And you’ll notice from my photo on this blog, that I’m remarkably coiffed. How did I get that way?

I’ve been getting my hair cut by Bill Stolberg, the owner of Bill’s Barber Shop in Saline, for many years now. Other than having a thick head of hair, I owe the appearance of my hair to Bill.

Stop in and visit with him sometime. You’ll be glad you did!

Michigan wins the Capital One bowl game

2008-01-01T17:35:00.000-05:00

Michigan wins the Capital One bowl game

It’s the end of an era for the Michigan Wolverines football team, but at least the Lloyd Carr era ends on a winning note! By a score of 41-35 against the Florida Gators, the Wolverines have won their first bowl game since 2004.

Congratulations to the Wolverines!

We’ll miss you on the sidelines, Lloyd. All the best in your new endeavors!

Have You Heard What They Said?

2007-12-31T13:45:00.000-05:00

If you're wondering what kind of an agent I am, here are a few recent samples of comments from clients - many of whom write a very nice "Thank You" note after our transaction is complete.

Happy Reading!

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“Thanks. That was a very satisfying operation, and I’m very pleased with how smoothly it went. You did a splendid job of managing all the details, and your efforts are appreciated very much.”
W.B.

“Thanks again for making time to come to the closing. I know you must have been very busy just getting back from vacation. We appreciate all of your help in selling our home. You helped make the process go smoothly and quickly.”
V.M.

“…we were talking about how easy you make everything in this transaction, compared to our last experience. We are happy that we were able to make such a quick turnaround on this property…”
R.C.

“I am still very thankful for all of you who worked so hard with me to make this possible and appreciate it more than you know.”
S.G.

“Thank you for all your help and patience with me.”
J.G.

“We would feel really confident referring our friends to you because you have been incredibly dedicated as we have explored this option over the past year.”
L.R.

“We just wanted to say thank you for all of the time and hard work you did for us. You made us feel special.”
J.A.

“…wanted to let you know I am very satisfied with the service Vance has provided. I would not hesitate to use him again.”
G.N.

If you'd like to find out more about how I work, please call!