Housing Permit Requests Rise

Recognizing a recovering housing market involves looking beyond how many houses are selling and what their selling for. Many other factors help determine whether the housing slump is truly coming to an end and one such factor is housing permits. If builders are applying for more housing permits, they are intending to build more houses, which imply willing buyers with the financing to back their future homes.

According to a recent article on CNNMoney, builders applied for permits in May 2012 at the highest rate since September of 2008. This coincides with a National Association of Home Builders survey, which recently found that builder confidence was at its highest since 2007. Though permits have risen, the number of new house starts has not yet grown to match the increasing permits. In fact, housing starts declined 4.8% in May compared to April; however, the increasing permit requests still bode well for the future of the housing industry.

One of the perks to new home building is that it can have a stimulating affect on the local economy and create new jobs. For the building process alone, most homes will employ an architect, carpenters, plumbers, electricians, painters and laborers. According to the National Association of Home Builders, building a new home creates three new jobs and the impact on the local economy for 100 newly built homes includes a generation of $21.1 million in local income, $2.2 million in taxes and local government revenue and 324 local jobs. For many people still struggling in depressed areas, new homes are symbols of hope.

If you're thinking of buying or selling a home in the East Lansing area, please get in touch me at MyRealtorRob. As an East Lansing realtor I can help you find the home of your dreams and even connect with you with a great local builder if you prefer to be there from the ground up.

Home Seller's Showing Checklist

If you're ready to sell your home, it's important to make a great first impression, which means stellar home showings. There are a lot of tips that your friends, realtor and others will offer you in the realm of home showings including everything from buying fresh flowers to painting in netural colors. Consult the comprehensive checklist below to make sure that you cover the basics when it's time to show your home.

Outdoors

• Lawns and shrubs trimmed
• Lawns and shrubs watered
• Walkways and driveway cleared
• Hoses neatly coiled
• Bikes and cars in garage or shed
• Mailbox in good shape

Home Exterior

• Roof clean and in good shape
• Steps and patios clear and clean
• Windows caulked and clean
• Yard clear of toys, tools and equipment
• Gutters clean

Garage

• Floor is swept and possibly painted
• Garage is organized
• Cobwebs and dirt cleaned
• No clutter

Home Interior

• Floors and carpets clean
• Pets not in view
• All furnishings clean and dusted
• Beds made
• Dishes put away, counters clean, appliances wiped down
• Bathroom well aired and clean
• Sinks and bowls shining

Plumbing/HV AC

• Leaky fixtures repaired
• Under sink clean and dry
• Clutter removed
• Stains scrubbed away

Electrical

• Burned out bulbs replaced
• No frayed wires
• Makeshift extension cords removed
• Outlet plates clean and intact

Decor

• Walls clean and painted if necessary
• Ceilings and ceiling fans cleaned
• Pictures straight
• Blinds clean and orderly
• Fireplace clean and ash free

Final Touches

• No loud noises - TV etc
• Smells fresh, consider air freshener, but not too strong
• Netural temperature, maybe open windows for fresh air
• Well lit

Basement

• Clean and organized
• Laundry area clean, no dirty laundry

If you're selling a home in the East Lansing or Greater Lansing areas and would like more tips on presenting your home in the best possible way, please contact me at MyRealtorRob. As an East Lansing realtor, I can help prepare your home for showings in addition to offering you a free makret analysis.

Rising Rent May Boost Housing Market

The floundering housing market, which included mass foreclosures and tightened lending policies changed the landscape of owners and renters. Suddenly hundreds of thousands of people were pushed out of their homes and found themselves in the world of rentals. Many young people, disillusioned by the housing crisis, simply opted for renting, believing that purchasing a home was too risky and did not offer enough incentives. Unfortunately, as more people flooded the rental market, lease rates began to climb. In 2011 alone, the total number of rental households grew by one million. Vacancy rates have also been plummeting, leaving fewer options available for renters.

Across the United States, marked increases have been noted in rental rates. According to a recent article on MSNBC, rental inflation has been experienced in every region of the country. The highest increase occured in the Northeast with a collective surge of 6.5 percent. San Franciso saw the highest jump with an increase of 11% in 2011.

These changes, combined with falling mortgage rates, significantly lower home prices and a recovering market outlook has led many people back to the buyers table. When you're spending several thousand per month on rent, purchasing begins to look significantly more appealing. The upsurge in buyers has also been noted with many Realtors observing homes selling within days of listing, multiple offers on properties and a growing shadow housing market. The number of available homes listed has also seen decreases with 20% fewer or 1.88 million homes less last month than the same month last year.

Investors might also recognize the value of purchasing during a time when the rental market is satiated. Owning rental property is quickly becoming a lucrative business again as rental rates rise and tenants become easier to find.

In East Lansing, we rarely see a draught in the rental market due to popular Michigan State University. From students to incoming faculty, East Lansing rental properties are valuable assets and I generally recommend any investors interested in owning income property in this area to begin with East Lansing. If you;'e thinking about purchasing a new home, investment property or selling the home that you currently own, contact me at MyRealtorRob.

Landlord Tips

Tips for Dealing with Tenants

There are a lot of perks to being a landlord including monthly rental income, financing a property through tenants and growing your investment portfolio. However, nearly every situation has an equal and opposite and in the case of renting, the obstacles can seem rather overwhelming if you’re not prepared for them.

Know Your Rights

Landlord rights differ across states, but it's important to get well acquainted with your rights and responsibilities before renting a property. You can visit your state government website to learn more about specific laws regarding landlord laws in your area.

Basic Responsibilities

• Ensure the property is habitable before tenants move in
• Pay for all repairs due to basic wear and tear
• Do not unlawfully discriminate based on race, religion or sex
• Do not turn off tenant's water, electricity or gas

Leases

As a landlord, the lease is your best friend. It's unfortunate, but most landlords will deal with unruly tenants at some point, which is why a specific, detailed lease is imperative. Getting lease terms in writing helps protect you and your property in the future. Include all of your expectations in your lease from the the time frame that the tenant will rent to whether or not they are expected to mow the lawn.

Items to Cover in the Lease

• How much is the rent and when is it due?
• How long is the lease for? Month to month - a year?
• What is the total deposit and what does it cover?
• Pets - are they allowed? Is there a pet cleaning fee?
• How many tenants are included in the lease? Can more people move in?
• Who pays for what repairs?
• Who takes care of lawn and snow service?
• Is the tenant responsible for their own utilities?
• Is there a fee for late rent?

Issues Getting a Tenant to Vacate:

Tenants have a lot of rights when it comes to the home that they have been occupying, which is why many landlords complain incessantly about the process of evicting tenants. Your first step is to treat your tenants with kindness and respect, preferably from the first day that they move in. If you maintain a positive relationship, they are less likely to create conflict if an eviction occurs at some point. If for some reason, you need to ask them to leave, start with a conversation. Explain your reason for asking them to vacate, offer them a positive reference (if you’re willing) and inform them that a written notice will follow the verbal one. Give written notice to them directly to ensure that they receive it and make sure that you adhere to any local tenant notice laws in terms of what the notice should say and how soon they must receive it. If your tenant refuses to leave, you may have to file an Unlawful Detainer Suit and begin court proceedings to have them legally removed from the premises. This generally includes filing a complaint or petition with your local court and a future court date will be set. In many cases, the tenant will be required to respond to legal documents and appear in court.

As an East Lansing realtor that specializes in licensed rental properties, I can assist you if have questions about your rights and responsibilities as a landlord. If you;re thinking about expanding your portfolio to include rental properties, including East Lansing rental housing, get in contact with me at MyRealtorRob.

Bank Repos in Michigan Down 42%

The last several years. we've all grown pretty accustomed to bank repossessions. In fact, many of us have experienced them first hand. However, last month (May 2012) bank repossessions in Michigan dropped by 42%, good news for many Michigan homeowners. Repossessions can detract value from surrounding homes and often lower morale in neighborhoods where foreclosures are abundant, creating a repossession shadow that seems to fall over a community like a black storm cloud.

Fortunately, the housing market in Michigan is definitely moving into the silver lining of that cloud as reposessions drop, home sales increase and the values of homes steadily rise. According to a recent article in the Detroit Free Business Press, REO's (real estate owned by banks) in Michigan have declined in 18 out of the past 19 months and foreclosure filings dropped in Michigan by 40% in May of 2012 compared to the same month last year.

Although these findings show improvement, Michigan was by far one of the hardest hit states during the housing crisis and we have a long climb back to the top. According to Daren Blomquist, a spokesman for RealtyTrac, a recovery of the market in Michigan will largely rely upon improvements in the job market and the economy as a whole.

Michigan continues to rank in the top ten for foreclosure rates, with a rate of 1 foreclosure for every 519 households. It comes in behind Georgia, Arizona, Nevada, California, Illinois, Florida and Ohio. But regardless of the numbers, correction is underway and people are slowly, carefully moving back into the realm of home purchasing.

If you want more information about foreclosures or short sales in the Greater Lansing or East Lansing areas in Michigan, please get in touch with me at MyRealtrorRob. As an East Lansing realtor, I can answer any foreclosure questions you have or assist you in the purchase or sale of your home.

Buyers Frustrated with Low Inventory

It has become increasingly obvious that the upsurge in home buyers has led to a deficit of desirable homes on the market. Low home prices combined with dropping mortgage rates have motivated many people back into the buyer's market; unfortunately, homeowners have not followed suit, creating a gap between what buyers want and what's available for purchase.

According to a recent survey by real estate brokerage Redfin, many buyers are frustrated with the lack of available properties(Wall Street Journal). They are ready to buy, have their financing approved, but simply can't find the home that they want. Of the 1,200 home buyers surveyed, 6 out of 10 people stated low inventory as their primary concern in purchasing a home right now. It is not simply an issue of buyers being unhappy with the options; compared to last year, there are 20% fewer homes currently for sale. Additionally, 7 out of every 10 buyers faced competing offers when they put offers in on homes that they were interested in.

Although buyers are feeling stressed over the changing housing market, sellers are beginning to celebrate. Not only are their homes selling quickly, they're often receiving multiple offers for full asking prices. Basic supply and demand helps sellers realize that housing prices are starting to rise, prompting more of them to be open to listing their houses for sale now.

This housing draught is also what gave rise to the Shadow Market, which I blogged about in April of this year. The shadow market continues to exist as motivated buyers request that there real estate agents contact non-listed houses to find homeowners who might consider selling if the price is right. For many home owners, the incentives to sell as the market crashed simply did not exist. From buyer's struggling to get financing to low home prices, if a home owner didn't have to sell, they didn't. However, the market is an ever-changing entity and already we can see sellers responding to the influx of buyer's searching for their dream homes.

If you live in the East Lansing or Greater Lansing areas of Michigan and have been considering placing your home on the market, now is a great time. As an East Lansing realtor, I can help match you with a buyer quickly. Likewise, if you're intending to buy a home in East Lansing or the Lansing area, please get in touch with me at MyRealtorRob.

Mortgage Rates Drop and Short Term Loans Rise

The housing market has seen a recent influx of buyers and with continually decreasing mortgage rates, it's easy to see why. Freddie Mac's most recent mortgage survey reveals a 30-year fixed rate loan carries an average mortgage rate of 3.75 percent, down from 3.78 percent the previous week, reaching the fifth straight week of record lows. These rates are appealing to most buyers, but even more appealing is the average mortgage rate for a fifteen-year fixed loan, which came in at 2.97 percent, down from last week's 3.04 percent rate. This is the first time during the 21 years that Freddie Mac has tracked the rates that the 15-year loan came in below 3 percent (RisMedia).

These record lows are drawing more people to the faster pay-off loans; however, the majority of individuals taking advantage of the fifteen-year loans are refinanciers. One drawback to the shorter term mortgage is that they do carry a significantly higher monthly payment. These can range from several hundred dollars to a thousand or more monthly. Another incentive to choose the fifteen-year mortgage is Obama's Home Affordable Refinance Program, which reduces fees for new borrowers if they opt for loans that are shorter than 30 years.

One of the major perks to choosing a fifteen-year mortgage over the thirty-year is the sheer amount of money that you save in interest over the life of the loan. However, these types of mortgages are generally only recommended for homeowners who are secure financially. According to Bob Walters, chief economist at online lender Quicken Loans, people should only choose these short term loans if they have at least a year's living expenses in liquid assets and a debt to income ratio below 35% (Yahoo Finance). His reasoning behind this is quite simple, the high monthly payment can quickly spiral out of control if the homeowner loses their job or experiences an illness or other emergency.

Benefits to a 15-Year Fixed Rate Mortgage

• Lower mortgage rate
• Faster payoff time
• Less interest paid over life of the loan
• Forced savings plan

Potential Issues with a 15-Year Fixed Rate Mortgage

• High monthly payments can become unaffordable
• Less money to invest elsewhere

If you would like more information about mortgage loan options or you want to get pre-approved for a home mortgage in the East Lansing or Greater Lansing area, please contact me at MyRealtorRob. As an East Lansing realtor, I can help you buy or sell investment or residential property.

Best Home Improvement Splurges

Home improvement is not always about making functional changes to improve your home's value. After all, your home is a place of comfort, in which you and your family spend a great deal of time. It can be tempting to only make necessary repairs and improvements, but sometimes upgrades are less about the bottom line and more about quality of life. Consider adding value of another kind to your house this year with these home improvement splurges.

1. Wine Cellar: Wine cellars range from the Gothic spaces tucked away deep in your basement to a glass room filled with dazzling bottles of Merlot and Pinot Noir. In Napa, California one home owner's wine cellar comes with a large wine cave, easily stocked by the 4.5 acres of vineyards that the home sits on (Zillow). You can create a wine cellar simply by adding shelving to a space in your basement and keeping it stocked with your favorite wines.
2. Luxury Rec Rooms: Plush rec rooms are all about fun, which is why many homeowners make the choice to equip their homes with a rec room that focuses on comfort. Luxury rec rooms might include a jacuzzi, wet bar, pool table or even small theatre. The goal is to consider what will most enhance your life on a daily basis. Texas Rangers third baseman Adrian Beltre's rec room includes a batting cage and an infinity pool. Most people won't take their rec room quite to that extreme, financially it's simply not possible, but that doesn't mean they can't deck it out in their own version of opulence. 
3. A Spa-Like Bathroom: Bathrooms are an oft-neglected area of luxury improvement due to their frequent use that has more to do with utility than enjoyment. However, bathrooms provide the small bit of privacy that many people (especially parents) see on a day to day basis. Which is why it makes sense to create a bathroom that is like stepping into a spa. From whirlpool bathtubs to heated tile floors, you can easily transform your drab bathroom into a relaxing sanctuary. 
4. Workout Room: This is a gift to your home and your body and doesn't have to cost a small fortune. Some home gyms are complete with wave pools and elliptical machines, others are simply free weights and a yoga mat. The key here is to build a space that you want to be active in and that you will use regularly. Foam mats, long mirrors and a few pieces of workout equipment and you can workout from the comfort of your home.
5. Radiant Heating: Adding radiant heating (heatable coils under the surface of the floor) is both a luxury and a energy saver. They can be a costly addition to many homes, but they keep your toes toasty and, according to a recent Forbes article, can save 20% a year in energy costs.

Keep in mind that luxury home improvements should only be embarked upon if you have the extra funds to cover the costs. Taking out home equity lines or going deeper into debt is generally not advisable for lavish extras. However, if you do have the financial ease, these home improvements can add value to your house and your life.

You can also take another route to living in a home with a workout room and wine cellar, buy one! If you're looking for a home in the East Lansing or Greater Lansing areas of Michigan, and would like to see what's currently on the market with the features listed above, get in touch with me at MyRealtorRob. As an East Lansing realtor, I specialize in the sale and acquisition of residential and licensed rental homes.