Eco-Friendly and Off-Grid Living

In an increasingly environmentally aware society, people are turning more and more towards alternative forms of housing. The range of options is extensive from miniature dome-style houses to full blown mansions equipped with solar panels and wind turbines. As the technology for eco-friendly sources of energy improve, more and more people opt out of traditional homes and seek housing that provides monetary relief while also helping preserve the earth.

A recent article in CNN Money highlights just how available off-grid housing is becoming. The article features the House Arc, a modular 150-square foot home that can be shipped in a crate and assembled by anyone with basic carpentry skills. Architect Joseph Bellamo, who helped design the House Arc, was focused on creating a quick housing option for displaced communities after natural disasters. Though this home option is still relatively pricey at $55,000, it's helping to pave the way for more innovative forms of housing.

Many people choose to build their own off-grid homes rather than attempt to modify an already existing structure to meet their needs. There are a variety of companies that specialize in such homes including the International Dome House Company, Hybrid Homes and many others. Off-grid living often includes homesteading practices, which is why many people choose to purchase acreage so that they have space for a farm or garden. In Michigan, we have a growing community of small family farms making the popularity of vacant land on the rise.

If you are considering an eco-friendly home or simply some environmentally conscious updates, you have a lot of options. Simple changes might include efficient light bulbs, energy star appliances and non-toxic furniture. If you want more advanced updates, you can purchase solar panels, create a rainwater collection and distribution system, or add passive heating and cooling options such as skylights, ceiling fans and adequate insulation.

The type of home that you need when living off the grid varies by your location since these homes are created to consider the environment, the weather and the natural terrain. For instance, Michigan sees rather cold winters so homes must be well insulated and equipped with some form of heating option for those snowy months. A 2010 article in the Michigan Daily spotlights one such Michigan homeowner. Joe Trumpy of Grass Lake, Michigan resides in a two-story adobe house that he built himself, which features solar panels, straw insulation and stone flooring to retain heat.

If you're searching for an eco-friendly home in the Lansing or East Lansing areas or are thinking about purchasing vacant land to build your own, feel free to contact me at MyRealtorRob. As an East Lansing realtor, I can also assist you in the sale or purchase of a new home.

Buying a Home After Foreclosure

Don't Let Foreclosure Prevent You From Home Ownership

While experiencing a foreclosure, many people wonder if they will ever own a home again. From the lasting trauma of having their houses reclaimed to damage to their credit, people who've been through foreclosure often don't see home ownership in their future. However, a recent article published in the Huffington Post states otherwise. Apparently a growing number of foreclosure victims have returned to the market and are buying homes.

The Federal Housing Administration (FHA) is largely to thank for the ability of foreclosed individuals to get back into home ownership. The stringent guidelines set out by conventional banks have caused a lot of people to turn to the FHA and to seek loans through the Department of Veteran Affairs and the Department of Agriculture. In general, FHA borrowers need a credit score of 620 and a down payment of approximately 3.5% of the total home's cost. Borrowers should also expect to pay up front mortgage insurance premiums of 1.75 percent of the loan and an annual premium of 1.25 percent.

Despite the ability for some people to purchase again, it is still important to know what you're getting yourself into. According to Edward Pinto, resident fellow at American Enterprise Institute, the "FHA is putting people back into situations that still have high risk of default." The low down payment combined with a previous history of default may foreshadow the possibility of people taking out home loans that they will be unable to afford in the long run.

Most of the people who have foreclosed and are now purchasing homes began rebuilding their credit immediately after their foreclosure. Since a bankruptcy remains on your credit for seven years, it is important to take the necessary steps to pay bills on time and help recuperate a low score.

Money Girl offers several tips to help rebuild your credit after a foreclosure so that you can move back into the buyer's market. First and foremost is paying bills on time. Second, she advises that you obtain a secured credit card, which you use, but pay in full each month. She also advises that you wait at least two years before trying to buy a home and use that time to save money for a substantial down payment, which can often sway lenders if there is a bankruptcy or foreclosure on your credit.

If you're thinking of getting back into home ownership in East Lansing or the Greater Lansing area and would like more information about real estate for sale or getting pre-qualified for a mortgage, please contact me at MyRealtorRob. As an East Lansing Realtor, I work with a lof of buyers, including those who have previously experienced foreclosure and I'm more than happy to help you get get started on the path to recovery.

Hot House Trends

Like fashion’s morph from bell bottoms to skinny jeans, housing trends are constantly changing. You can stick with your orange shag carpeting circa 1970 – in fact I think it’s making a comeback – or you can stay on top of the current fads and possibly be adding value to your home.

This is especially true if you’re intending to sell your home in the near future and want to make it as marketable as possible.

What are the hot housing trends of 2012?

• Easy Access: Okay it sounds hot, but actually it’s pretty tame. Accessibility is all about making your home a viable living option for the aging baby boomer population. Many boomers are moving into smaller homes or their families are purchasing homes that they intend to share with aging parents. For many of these individuals, certain elements such as wheel chair ramps and bathroom grab bars are simple updates that make the home more livable for aging peoples. Single story homes and those with less stairs are also gaining in popularity. According to a Home Trends Survey conducted by the American Institute of Architects, more than half of the architects surveyed noted accessibility as a major design factor.
• Kitchen Technology: Technology is not merely isolated to our workplaces, cars, home offices….hmmm actually technology seems to have infiltrated everything so why not out kitchens too? According to a blog post on House Logic, a myriad of kitchen tech improvements have begun to show up in newly built homes. A few of these include appliances with digital screens and USB ports, induction built-in cooktops and lights controlled by smart phones and tablets.
• Non-Carpeted Floors: Homes are increasingly bidding farewell to carpeting as home builders and buyers prefer something more bare. These may include hardwood floors, laminate flooring, cork or tile. There are eco-friendly options here as well, which is also an increasingly popular trend. For instance, the material used to make cork floors is a natural by-product of tree bark that sloughs off every fifteen years naturally thus no trees have to be destroyed to create cork flooring (Deseret News).
• Productivity Space: These small areas or alcoves are all about offering homeowners a spot to work within the functional space of their home. Rather than being tucked away in a den or office, resource centers might be located in the kitchen or living room and often include a desk, cubby holes and other tools for work and organization. 

If you're planning on selling your home sometime in the near future, you may want to consider incorporating a few of these trends. Utilizing trends can help set you apart from other more traditional homes that aren't offering what new families are looking for in the 21st century. As an East Lansing realtor, I can attest to unique touches often being the difference between a home that sells in a month or sits on the market for a year. If you need tips on buying or selling a house in East Lansing or the greater Lansing area, get in touch with me at MyRealtorRob. 

Why You Should Buy a Condo

Do you hate yard work, loathe shoveling the driveway and detest fixing leaky shingles? Then perhaps a condo is the choice for you. Many people begin to consider condos when they want to transition from renting, but aren't ready to make the leap into a full-sized residential home with all of the maintenance hassles. Downsizing is also a popular reason that people shift their gaze towards condominiums.

So what are the benefits to buying a condo?

·   Lower Price? Obviously this benefit varies considerably depending on the area that you live in, the newness of the condo and the overall market. However, in many areas you can move into condo ownership for considerably less than purchasing a residential home. For instance, there are many condos currently listed in the popular East Lansing area for under $100,000. It's much harder to find a home in this desirable location for a similar price.

·   Shared Maintenance: This is a huge perk to potential condo buyers, especially those who abhor home improvements. No longer do you have to devote weekends to weeding, mowing and trimming the hedges. In Michigan, snow removal can also be a huge burden that condo owners get to avoid.

·   Less Responsibility: Condos can be a great option for people who travel and want to be able to leave their home for months at a time. The network of other condo owners helps you rest easy knowing that your home is secure.

·   Community: Unlike many modern apartment complexes, condominiums tend to foster a greater sense of community because the people that live around you may be neighbors for years to come. You may also attend association meetings together and interact at clubhouses, condo pools and other spaces that create a greater sense of unity.

Potential Condo Pitfalls

·   Association Dues: These monthly fees cover a variety of costs including lawn care, garbage service, snowplowing service and other condo costs. However in some cases, these fees can be greatly inflated to pay for additional amenities or improvements. If you purchase a condo, you are required to pay these fees even if you don't necessarily agree with the improvement or use the amenities. They can also increase over time or suddenly rise dramatically if an unforeseen expense occurs.

·   Group Ownership: When you buy a condo, you essentially move into a group ownership situation. Therefore, any changes that you feel are necessary must be agreed on, usually by a condo association board. If you have any disputes with board members or don't like the way they handle the condominium decisions, you may find yourself living in conflict.

·   Rented Units: If you purchase a condo that has many owners who rent their units, you may run into trouble. Condo associations may find it harder to enforce condo regulations with renters and if a tenant stops paying their association dues, the owner-occupied condo owners may have to pick up the slack.

Questions to Ask Before Buying

1.Is the building in good shape? It can be easy to overlook this when purchasing a condo because you are more focused on your individual unit; however, you are purchasing a percentage of the whole structure and if it has major necessary repairs or issues, you will be paying for them down the road. Find out when the structure was built and by whom and if there are any foreseeable repairs upcoming.

2.What rules and regulations govern the condo? Most condos have a board of group of owners who oversee the repairs and running of the condominium. Read all of the association paperwork thoroughly to ensure that you can support the current rules that owners are expected to follow.

3.Are there any owner disputes? Find out whether the Association is resolving homeowner disputes and if so, what are they? This can help you understand what types of issues the condo owners are dealing with and may also be a red flag if there are a range of complaints.

If you currently reside in the Greater Lansing area of Michigan and are thinking about purchasing a condo, please get in touch with me at MyRealtorRob. As an East Lansing realtor, I can answer all of your questions about condo ownership and show you a variety of fantastic deals on condos that are currently on the market.

A good neighbor is a fellow who smiles at you over the back fence, but doesn't climb over it.

-Arthur Baer

East Lansing Housing Rehabilitation Program

If you are a resident of East Lansing, it may excite you to hear about the Housing Rehabilitation and Improvement Program. This program, also referred to as the Rehab Program, provides eligible residents with zero percent interest loans to improve their homes. The Hometown Housing Partnership (HHP) uses funds from HUD to connect financially eligible individuals with the financing to improve their living situation.

Who is eligible for the East Lansing Rehab Program?

• East Lansing residents who are 80% or below the median income guidelines set out by the U.S. Department of Housing and Urban Development (HUD).
• Residents who live in their home. Rentals do not apply.
• Residents who are current on their mortgage, home owner's insurance and property taxes.
• Residents whose homes are not located in a floodplain.
• Residents whose homes are single family residences.
• Residents whose homes are located within the East Lansing city limits.

The program offers loans of up to $24,999. The loan must be first put towards any code compliance issues that are related to structural, electrical, mechanical or plumbing defects. After these are corrected, you can put the money towards improving your home's security and weatherization, which can save you future utility expenses. Repayment of the loan does not require monthly payments (Yay!) and is 50% forgivable after 7 years and 50% deferred.

How do I apply for the East Lansing Housing Rehabilitation Program?

• Gather the necessary paperwork. To prove eligibility you will need to provide the HHP with the previous year's Federal Income Tax return, pay stubs for employment verification and bank statements.
• Fill out an application. Staff at the Hometown Housing Partnership can help you complete the application.

To learn more about the East Lansing Housing Rehab Program visit the City of East Lansing's website.

As an East Lansing realtor, I can offer guidance if you're searching for similar programs or would like to buy or sell a house in the East Lansing area. Please feel free to visit my website at MyRealtorRob.

Home Renovations that You can Afford

Whether you're selling your home or just think it's time to make some updates, home renovation costs can add up fast. If you're one of those lucky guys who learned to hang drywall as a teenager or just happen to be very handy, you're probably already saving loads compared to your less capable counterparts. However, a few tricks of the trade can make a big difference in the amount that you spend on your home renovations. Check out the list below to make this year's home improvements a value instead of a burden.

Make online purchases. When you choose to buy wallpaper, carpet or even cabinets online, you have access to thousands of companies, many of which are offering better deals than your local hardware store. Search a variety of websites including your standard stores like Lowes and Menards, which may offer online deals and coupon codes. Don't forget sites like Craig's List where you may be able to get deep discounts for your home improvement needs.

Find a handyman. There are a lot of very capable people who will provide their services and expertise for a fraction of the cost of specialty contractors. Many plumbers, electricians and carpenters also do handy work to supplement their income. Ask friends for references and check out Craig's List and your daily newspaper for people in your area.

Combine your tasks. If you're hiring a handyman to fix a leaky faucet, see if he's also willing to repair your fence and add a coat of finish to your deck. Rather than paying separate people to do each of your home improvements, bundling the tasks together can save you money.

Look for deals. Every appliance and home goods store has special discounted items. Maybe they were display models, got scratched during a move or just haven't sold. Ask the manager if they have any of these deals and scoop them up before someone else does.

Choose your renovation time during the off season. In the summer, air conditioning installation will cost more because more people are buying. It's as simple as supply and demand. This holds true for new porches, furnace installation and even windows. Make renovations when no one else is so that you can get a better deal and the contractor is more likely to bargain with you.

As an East Lansing realtor, I work with a lot of great contractors and handymen in the greater Lansing area. If you're thinking about selling your home and would like references or just have questions about which updates will give you the biggest bang for your buck, get in touch me at MyRealtorRob.

Resources for this post include a recent article on CNN Money.

Buying Foreclosed Property

With the recent and ongoing housing market challenges, most people have become very familiar with home foreclosures. Most of us, by now, know someone or have ourselves experienced home foreclosure and, if not, we've seen it on the news and in a host of other media outlets. Home foreclosures reached all time highs for a variety of reasons, much if which centered on risky lending practices combined with borrowers taking loans that they simply could not afford. Inevitably, home foreclosures would result and though it has been a trying and frustrating time for many people, it can also be positive.

Being displaced from your home is traumatic, but so is the stress of mounting mortgage payments and foreclosure offers homeowners a way to leave unaffordable housing situations and start anew. Foreclosures also give lenders a chance to recoup some of their money. For buyers looking for real estate, foreclosures are properties at a discount, which can be a benefit to investors and new home buyers both. In Michigan, we've experienced a lot of foreclosures, but in recent months, foreclosures have tapered off and home sales in general have been on the rise.

If you are considering purchasing a foreclosed home, make sure to get educated about the foreclosure laws in your state and just about the foreclosure process in general. Many states offer homeowners a Right of Redemption period during which they can buy back their home after it has been sold in a foreclosure. This often does not happen because few owners have access to the amount of their missed payments and fees accrued; otherwise they would not have reached the full term of their mortgage foreclosure proceedings.

Michigan Foreclosure Basics:

·   Judicial and Non-Judicial Foreclosures exist in Michigan. In Judicial Foreclosures, the court declares the total debt that the borrower must pay within a specific period of time. If the debt is not paid, the court issues a notice of sale. In Non-Judicial Foreclosure a power of sale clause exists in the borrower’s mortgage, which pre-authorizes the properties sale to pay off the accrued debt in the instance of default. Michigan does have a Right of Redemption Law.

Home Foreclosures: A Few Things to Remember

·   Not all foreclosures offer deep discounts. In some cases, a borrower owes much more than a property is worth and there may be multiple lien holders expecting to collect money for the sale of a foreclosed home. This and other factors can affect the asking price for a home foreclosure, so don't leap on it just because it's foreclosed.

·   Buying at auction takes cash and patience. Home auctions seem like a great way to pick-up low priced real estate; however, you may have to bring cash to buy auction properties. These homes can also take a while for you to gain possession of. Since you may not see the property before hand, there can also be extensive repairs or the home may have been stripped of appliances and damaged by the previous owners.

·   Find an agent who works with foreclosures. The high risk aspects of home foreclosures make the need for a knowledgeable real estate agent even more urgent.

·   Get a title search. Since the title may be clouded by other liens against the property, you may need to pay several hundred dollars before purchase having the title searched so that you don't obtain a property with multiple liens against it.

How to Buy Home Foreclosures

You have three options when purchasing a foreclosed property. You can buy a home during the foreclosure process from the homeowner. This means that you negotiate directly with the homeowner, but these can be risky because lenders may reject offers despite agreements between the seller and buyer. The other two options include purchasing a foreclosed home at auction or buying a bank owned home. One perk to buying an REO (real estate owned) property is that you can often qualify for a traditional mortgage to purchase it and banks that want to unload these properties are more likely to negotiate a deal that works for everyone.

If you're thinking about buying a Michigan foreclosure in East Lansing, Okemos or the Greater Lansing areas, get in touch with me at MyRealtorRob. In addition to helping you find foreclosure listings, I can answer all of your foreclosure related questions and offer local resources.

Why Do I Need a Realtor?

When it comes time to sell your home, you may contemplate whether or not to hire a Realtor. Since much of what Realtors do happens on their own time, many home sellers are unaware of the sheer amount of time and effort that goes into the sale of every home. Not to say that you can't sell your home without a real estate agent - you can - but make an educated decision first by understanding exactly what a Realtor does to sell your home.

1. Pre-Listing Activities: A lot happens before your house even hits the market.

•  Pre-list presentation where a real estate agent visits your home and explains their services, their sales record and their plan to get your home sold. To prepare for this presentation, your realtor researches comps in your area, your home's market value and the sales activity in your area for the previous 12 to 18 months.

2.  Listing Appointment Presentation:

• This presentation gives the realtor an opportunity to bring you up to speed on what the market situation is in your area so that you can make an educated decision about pricing your home. They offer their credentials, explain their company's profile and experience. They provide you with the CMA (comparative market analysis) that they created, discuss your selling goals, go over marketing strategy and explain any listing agreements and clauses.

3.  After You've Listed with a Realtor:

• Now the real work begins and it starts with the realtor reviewing your title information, obtaining houses plans and room sizes, taking photos and verifying current mortgage information. Your realtor is in the research phase which involves collecting tax, utility, and county information. They will also place signs in your yard, have keys made for the lock box and explain the benefits of a home warranty if that's something you're interested in. Your property with listing information, description and photos are entered into the Multiple Listings Database. 

4. Marketing Your Home

• This includes a wide range of activities that vary across Realtors and their companies. For the most part, all Realtors do a combination of Internet, mail and print marketing. I personally, add listings to my website, to Trulia, Zillow and other online real estate sites and update my listings on my social media pages such as Facebook and Linked In. This also includes word of mouth marketing within their agency and to any buyers they come in contact with. They holding showings and open houses and create virtual tours so that online buyers can view your property from the web.

5. Review Offers and Complete Contract Paperwork:

• Your realtor will review all incoming offers, ensure that the potential buyer is qualified to purchase your home and help you in making an educated decision about counter offers. Your realtor will manage every aspect of the offering process from faxing contracts to buyers and sellers to ensuring money is placed in the escrow account. There is a great deal of work involved in this stage of the process and you can review a more complete list at InsideIncline.com.

6.  Before Closing:

• At this point, your realtor is tracking the process of your buyer's loan to ensure there are no hang-ups. This is also the time to schedule home inspections and home appraisals. A lot of minro challenges may arise during the pre-closing weeks and your Realtor works diligently to put out fires and ensure that both the buyer, the seller and the lender is ready to close on time.

7. Closing: 

• Your realtor will be busy in the days leading up to your closing guaranteeing that all contracts have been signed, resolving any title issues and scheduling the closing date, time and location. At the actual closing, most of the work is finished and your Realtor will answer final questions, get sigantures and handle the filing of your closing paperwork.

Although this list in no way comprises all of a realtor's activities during a listing and sale, it helps to give you a snapshot of the process and a deeper understanding of how much time is actually devoted to every listing.

As an East Lansing Realtor, I can provide you will all of these services if you're interest in buying or selling a home in the East Lansing, Okemos or Greater Lansing areas. In addition to the aforementioned Realtor activities, I take a very strategic approach to marketing all of my listings online and ensuring that my buyers and sellers have access to all of the information and marketing that they need for a successful sale or purchase.

Combined with my personal knowledge of real estate transactions, I utilized a survey created by the Orlando Regional Realtor Association, which was conducted to educate the public about the services and functions of a Realtor. You can view their comprehensive list here.

Land Contract Homes

Since the recent housing crisis, land contracts have grown in popularity. When a seller chooses to offer their home for sale on land contract, they are essentially holding the financing for the buyer so that the buyer does not have to secure a conventional mortgage. Land contracts may be called many names including Contract for Deeds, Deeds of Trust, Notes, Trust Deeds or Privately Held Mortgages. Regardless of the name they all represent an agreement between a buyer and seller for the purchase of a home.

How Does a Land Contract Work?

This largely depends on the agreement created between the buyer and seller. However, the basic understanding is that the seller transfers ownership of a specific property to the buyer after the buyer has successfully paid the agreed upon price. In many instances, the seller will require some form of down payment and then the buyer makes monthly payments over a period of time. This may include a balloon payment at a future date or, in some cases, the seller will hold the financing for the time frame of a typical loan, which is generally 30 years. Most land contracts also include the stipulation that the buyer pay interest to the seller over the life of the loan. Each of these amounts from down payment to monthly payments and interest are agreed upon by the seller and buyer prior to sale.

When the agreement has been signed, the buyer takes legal possession of the home so long as they make their monthly payments and honor their land contract agreements. Aspects of default are also agreed upon prior to sale. In some instances, sellers will require immediate return of the property if a single payment is missed. However, some sellers may offer more leeway in this area.

Why Sell Your House on Land Contract?

There are a variety of benefits to selling on a land contract. First and foremost, you have access to more buyers because your home is not limited to purchase through a conventional mortgage. which generally requires that the buyer achieve a certain credit score and have the cash for a specific down payment (often near 10% of the total purchase price). You also collect interest in addition to monthly payments and a down payment. Finally, if the buyer defaults, you get your property back and can sell it to another party in the future.

Downsides to Selling Your Home Land Contract:

Obviously when you're holding the financing for the sale of your home, you will not receive a large lump sum for the sale. Instead, you are accepting smaller monthly payments over a longer period of time. You are also giving possession to the buyer and if any damages are accrued and the buyer defaults, you will likely not be able to collect on those damages. Lastly, if the buyer defaults, you will again own the property, which means taking full responsibility for taxes, insurance and upkeep.

Why Buy a Home on a Land Contract?

One of the most appealing aspects to land contracts for many people is not having to secure a loan through a financial institution. In recent years, many banks and private lenders have tightened their lending expectations. Therefore, people who have low credit scores, cannot prove a certain level of income or don't have an adequate down payment simply don't have access to homes being sold conventionally. Land contracts give these individuals the ability to buy a property directly from the seller.

It can also be appealing for buyers to deal directly with the home seller rather than a private lender when agreeing upon monthly payments, interest rates and other aspects of the loan agreement.

Downsides to Buying a Land Contract Home:

The biggest downside to purchasing on a land contract is the seller's ability to deny transfer of ownership if a payment is missed. Even after years of on-time payments, the seller still reserves the right to reclaim their property if a payment is missed.

If you're looking for a land contract home in East Lansing or the Lansing area in Michigan, please get in touch with me at MyRealtorRob. Many sellers offer the option of land contracts and as an East Lansing Realtor, I can help you navigate the confusing world of land contract financing.