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September 2012

Found 7 blog entries for September 2012.

Many believe that Spring is the best time to list their home for sale. Though it is true that the buyer demand increases in the spring, there are certain advantages to sell in the winter and fall. Below are five reasons why selling now may be your better option.

Only Serious Buyers Are Out

During this time of year you will not be pestered by people just "looking". The buyers in the fall are serious about purchasing a home. The people who normally are just looking at homes make up far more of the Spring's potential buyers.

Quicker Progress from Contract to Closing

One large problem seen in 2012 was the amount of time it takes from contract to closing. Lately banks have been swamped with both purchase and refinancing loan requests. These processes

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What is a short sale?

A short sale is when the bank agrees to accepts less than the total amount less on the mortgage. This normally a more appealing option for the bank because the burden of finding a buyer doesn't fall on the banks shoulders, as it would if the property was foreclosed on. This opportunity has been around for years, but due to the current state of the housing market and economy it has been receiving much more attention. 

To qualify for a short sale:

  • Your home must be worth less than what you owe on it.
  • You must be able to provide proof that you are undergoing a true financial hardship. Examples would be decrease in wages, job loss, recent medical condition, divorce, etc. The bank or investor will be the determinant of your
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3.8%-tax-on-housing-in-michiganHere are the 10 Things You Need to Know About the 3.8% Tax according to the National Association of Realtors(NAR):

 

1.) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.

2.) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property.

3.) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.

4.) If you sell your principal residence, you will still receive the full benefit of the

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The booming economy in the early 2000's left us with dreams of buying our beautiful vacation or retirement home.Unfortunately, the house prices rose as soon as the economy did. The real estate market took a harsh downturn, but now is thetime to re-evaluate our dream homes.

In 2006, our dream homes may have carried a price tag of $500,000. Freddie Mac recently estimated that a home selling for about $500,000 in 2006 may be on the market for $400,000 (or less). Buying now would also be more financially appealing when we compare the current interest rates to the rates of 6 years ago.

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Not everyone is blessed with the opportunity to take advantage of these low prices. However, if you are in a secure financial position this could be the time to

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The Chief Economist of Trulia, Jed Kolko, reported that homeownership is 45% cheaper than renting. Kolko explained:

“Homeownership is cheaper than renting in all of the 100 largest metros, by a wide margin. Despite the recent price rebound, rents continue to rise faster than prices, and mortgage rates are near record lows.

Homeownership makes the most financial sense for people whose strong credit scores let them snag the lowest mortgage rate and who get the biggest benefit from deducting mortgage interest and property taxes from their income taxes.”

(Click to read Trulia's full expaination here.)

This should not come shocking to most of us, as we already know the rental market today favors the landlord. Marcus & Millichap created a graph and

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Understanding The Difference

Inventory is the main component in determining whether we live in a buyers or sellers market. When there is more inventory than buyers, it is a buyers market. The opposite applies also; when there is more buyers than there is inventory, it is a sellers market. 

How This Applies To Metro Detroit

When the market crashed several years ago, it was flooded by bank owned foreclosed homes. Over the last few years, the market has slowly absorbed and purchased these bank owned properties. There has been a significant decrease in the amount of foreclosures on the market, as well as short sales. At the peak of the housing decline there were approximately 50,000 properties in the multiple listing system. Currently there is

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Buying a home in Metro Detroit is a smart investment, but it's an investment with a sizable upfront cost, depending on where you purchase your home. Neighborhoods within areas of Royal Oak, Northville, Novi, Birmingham and Ann Arbor are significantly more expensive. With the greater expense comes a larger down payment.

If you're unable to make at least a 20% down payment your lender will require private mortgage insurance (PMI) which will add thousands of dollars each year to your mortgage payments. The best way to avoid having mortgage insurance tacked on to your monthly mortgage payment for real estate in Oakland and Wayne County properties is to make a down payment of at least 20%.

That PMI is necessary as it helps lenders recover money if the

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