Staying Calm During the Home Buying Process

Buying a home is serious business and it's no surprise that the buying process can get pretty emotional. Finding the perfect home only to be out bid by another buyer is only one of many scenarios that leave home buyers grinding their teeth over the purchase of their future property. However, patience and understanding is key to a successful home purchase and sometimes accepting what is - rather than what you think should be - is the first step in navigating through a peaceful purchase.

Losing the home to another buyer: Usually by the time you've made an offer on a property, you've walked through it a couple of times, considered its potential for your future abode and found it worthy. You might even have started to imagine how your chaise lounge will look beneath that picture window and daydreamed with your spouse about swimming in the underground pool, but there's a reason for the myriad of cliches that go something like "don't count your eggs until they're hatched." Even in a down market people are buying and if you think the property is a great deal, someone else probably does as well. If your offer gets outbid, take a deep breath and recognize that this home simply wasn't meant to be, keeping in mind that until the houses closes, you might still have an opportunity to purchase the property if your heart is really set on it. Regardless, pick yourself back up and start looking again. Chances are you will find an even better option, perhaps around the next corner.

Your loan falls through: Whew this is a painful one and something that many home buyers experience at some point. You're weeks out from closing and the loan suddenly falls out. Before you throw yourself off a bridge or storm the lender's office, recognize that loans fall through all of the time and chances are you can repair the situation. First, contact your lender and find out what's going on. Is the lender closing their doors? Get approved for a loan through another bank. Did the home appraise too low? Negotiate a new purchase price with the seller based on the appraised value. Is your down payment too low? Investigate down payment assistant options in your area and consider where you might pull out extra funds - perhaps from a 401K or a loan from family.

The inspection uncovers some issues: This can be hugely disappointing especially if your home loan is compromised by the cost of repairs. Get multiple estimates on all of the repairs that need to be made and then consider your options. If you or someone in your family is handy, you may be able to make repairs yourself for significantly less than contractor prices. However, you will need to consider how much work you're willing to put into the home. You will also need to negotiate with the sellers for either a price drop or a certain amount of cash placed in escrow to cover repairs.

If you want to buy a home in East Lansing or the Greater Lansing area of Michigan, I can help you find properties in your price range. Feel free to contact me at MyRealtorRob with all of your home buying and selling questions.

Finding Your Home's Value

A lot of factors must be considered when assessing the value of your home. Appraisers look at a variety of things from the date that your home was built to the number of bathrooms. Knowing what adds to or detracts from the value of your home can help you make repairs and improvements prior to your home's appraisal. Check below for a few ways to increase the value of your house's appraisal...

Curb Appeal: The way your home looks on the outside has a relatively significant impact on its value. According to a recent article on CNNMoney, an appraiser may cut up to 3% off the value of your home if the outside is unkempt and dilapidated. This might include chipped and peeling paint, overgrown grass and bushes and other signs of distress.

How to improve it: Give your house a good once over before an appraiser comes out and be proactive in fixing damaged areas, touching up paint and trimming and landscaping your lawn. Consider power washing your home, adding a new coat of stain to your deck and planting flowers to add some color.

Systems: Appraisers are looking for functional electrical, plumbing, heating and other basic systems in your home. If these are not working properly, your home's value maybe drop several percent.

Make Repairs: Ensure that you fix leaks, update electrical and double check the ventilation and other systems in your house. According to Forbes.com, spending $2,000 to fix plumbing issues can generate a $4,000 increase in your home's appraised value.

Trendy Improvements: It may seem like a good idea to convert one of your spare bedrooms into a theatre or a yoga studio, but appraisers understand that trends die and future owners will have to pay to renovate such spaces.

What to do: skip improvements that are likely to go out of style in a few years. Instead opt for things that add lasting value to your home like additional bathrooms or a finished basement.

Efficiency: In this day of rising gas and electrical prices, energy efficiency equals increased value.

How to get efficient: Replace windows and appliances with energy savings options. Many states offer funding for energy improvements so look into these to see if your household qualifies.

As an East Lansing Realtor, I can also offer you a Free Home Market Analysis that considers recent comparables in your area, your home's features and the current housing market to determine your property's value. I can help you buy or sell property in the Greater Lansing and East Lansing areas of Michigan. Contact me today for more information.

Selling Your Home By the Season

Homes look and feel very different from month to month. The lovely three seasons room might be the perfect sunlit reading nook in August, but a frigid cave in January. These major transitions in weather can have a huge impact on how buyers experience your home during showings and open houses. To increase the likelihood of a successful sale, prepare and stage your home for its best face in every season.

Spring Staging

Spring is a great time to sell your home because it's all about new beginnings and many people are ready to shirk off the old in favor of something different. This means transitioning your home from a winter hideaway to a Spring oasis.

• Brighten everything. Open windows, replace burned out light bulbs and replace any heavy curtains, rugs and bedding with lighter, Spring hues. Think whites, light yellows and pastels.
• Plant flowers and bring fresh flowers into your home to give off the scents and energy of Spring renewal.
• Clear out the winter clutter so create more space and a feeling of openness. Maybe even have a garage sale or take a trip to your local thrift store to drop off unwanted goods.

Summer Staging

In the summer, we're thinking outdoor barbecues, dips in the pool and leisurely naps under a shaded backyard tree. If your home is on the market during the hot, steamy months put your efforts into making it summer savvy.

• Maintain your landscaping so that flowers are fresh and bright (not dried and wilting), long grass and weeds are eliminated to deter nesting bugs and no plants are running totally wild making your lawn more jungle than picnic area.
• Get your deck ready for entertaining with a good power wash, new coat of stain and a thorough cleaning of patio furniture. You might even add more ambiance to this area with tiki torches, an above ground fire pit or other deck decor.
• Turn on the AC or get the fans going full blast so that prospective buyers are cool and comfortable when they walk through your home. No one wants to pay for a hundred thousand dollar sauna to spend their summer sweating away in.
• Make the indoors feel light and summery with brightly colored beach towels in baskets, fresh flowers on table tops and lighter colored drapes, rugs and other decor.

Fall Staging

As summer winds down and Autumn brings our first crisp mornings, many people begin to long for the feelings and images of fall. These might include bonfires, holidays like Halloween and Thanksgiving, root vegetables and darker hues.

• Use scent to give your home an Autumn touch. Bake a cinnamon apple pie or burn a pumpkin scented candle.
• Give buyers a unique experience by leaving out cups of apple cider or pumpkin flavored cookies for showings or open houses.
• Decorate with oranges, golds and reds to bring the colors of Autumn from the outdoors to the indoors. You might add pumpkins to your front steps or choose hand towels and rugs in dark gold and red colors.
• Make sure the heat is on if the weather has turned cold to ensure that buyers feel warm and cozy while traipsing through.

Winter Staging

When it's cold outside, people long for warmth and creature comforts. You want to decorate and prepare your house to offer prospective buyers a warm sanctuary.

• Turn the heat up, but don't blast it to the point where people get overly hot. Find a nice, warm temperature that feels soothing when they come in from the cold.
• Increase the temp and the ambiance by turning on fireplaces and showcasing a perfect place to warm up in snowy February.
• Clear the sidewalks, driveways and stairways of snow. Sprinkle salt and break up any ice that has formed in areas that buyers might walk.
• Keep areas that get especially messy in the winter like mudrooms and entryways clean of debris, but plentiful with hooks for winter coats and rugs for wiping snowy boots.

If you're thinking of selling your home in the Greater Lansing or East Lansing areas of Michigan and would like more tips of staging or are looking for a qualified Realtor, please contact me at MyRealtorRob. As an East Lansing realtor that is more than familiar with the changing Michigan seasons, I can help you present your home in the most positive light for every season.

Protect Yourself From Homeowner Scams

Owning a home gets complicated enough without the added issue of people attempting to scam you on home repairs or other property related work. However, according to the 2011 Consumer Complaint Survey Report by the Consumer Federation of America, home improvement scams appeared as one of the five fastest growing complaints by American consumers. The report offers personal stories of individuals scammed during a variety of home improvement projects and hopes to inform consumers to reduce the likelihood that they fall victim to similar experiences. The federation recovered more than $147 million last year alone for homeowners who were scammed.

Don't Pay in Advance: Paying up front for home renovations can be a very costly mistake. In one instance reported by the Consumer Federation of America, a school teacher shelled out $17,000 for a home addition only to have the contractor close his business and flee to Asia before even starting the work. Fortunately, he was later tracked down in California and forced to pay the teacher back in full; however, many contractors get away with similar scams because homeowners don't know how to find them or who to call for assistance. To protect yourself, only pay a deposit up front and then pay for the work in increments as it is completed.

Check for Licensure: Nearly anyone can claim to be a contractor, a locksmith or any number of other professionals to gain access to your home or secure money for a future project. Before you allow anyone into your home or pay for any service, check online to ensure that the person you're considering for the job has the appropriate licensing for your state. You can also simply search their name or business name to find possible customer reviews or complaints.

Pay for Items and Furniture with a Credit Card: When you pay with cash or a check for furniture and other items that are to be delivered, you have few ways to recoup your money if the goods never arrive. The Consumer Complaint Report described one New Jersey Company owner who embezzled more than $60,000 in customer payments for furniture that he never delivered, shortly before closing his business. If you pay with credit, you can dispute the payment then your items don't arrive and possibly get your money back.

Be Weary of Door to Door Contractors: It might be tempting to pay the guy on your doorstep who offers to pave your driveway for half what you might pay a traditional company, but fight the urge until you check out his background. One example portrayed in the Consumer Complaint Report involved a "fake" asphalt repairman who collected payments for asphalt and then sprayed consumer's driveways with something else. Do your research and make sure the person is legit before offering them any sort of payment.

If you live in the East Lansing or Greater Lansing areas and need referrals for contractors and home improvement professionals, feel free to contact me at MyRealtorRob. As an East Lansing realtor, I work daily with a variety of reputable property contractors and am more than happy to offer you their information. I can also assist you in the sale or purchase of a new home in the Greater Lansing area.

Read more on MSN's "From Sleazy Contractors to Bedbugs: Homowner Scams on the Rise."

Millionaire Buys All Tax Foreclosures at Michigan County Tax Sale

Close to 300 people arrived for a Macomb County Tax Sale in July only to watch all of the homes sold out from under them. Millionaire Bill McMachen purchased 650 foreclosed properties for $4.8 million dollars. Many other individuals and investors were stunned and disappointed that the county chose to sell the properties in a package deal, when selling them individually might have yielded a higher profit; however, according to Macomb Count Treasurer Tim Wahby, only some of the homes sell for more than the back taxes while many of the properties don't sell at all, leaving the county holding the bag. Still several investors, including a Canadian Company that had spent several weeks preparing a higher bid for the properties they intended to buy, stated their frustration that they'd wasted their time.

McMachen, the Millionaire purchaser, is offering to sell some of the homes for near auction prices to individuals who are still interested. He says that this is actually beneficial to many potential buyers because they can view the homes before they purchase them, which one can't do when purchasing through a county auction. Additionally, McMachen intends to donate any of the homes that he is unable to sell to charitable organizations.

Tax foreclosures are only one example of the many deals that people are currently finding in the real estate market. If you live in the East Lansing or Greater Lansing area and would like to learn about homes for sale in your area, including Michigan foreclosures, please contact me at MyRealtorRob.

Millionaire Buys All Tax Foreclosures at Michigan County Tax Sale

Close to 300 people arrived for a Macomb County Tax Sale in July only to watch all of the homes sold out from under them. Millionaire Bill McMachen purchased 650 foreclosed properties for $4.8 million dollars. Many other individuals and investors were stunned and disappointed that the county chose to sell the properties in a package deal, when selling them individually might have yielded a higher profit; however, according to Macomb Count Treasurer Tim Wahby, only some of the homes sell for more than the back taxes while many of the properties don't sell at all, leaving the county holding the bag. Still several investors, including a Canadian Company that had spent several weeks preparing a higher bid for the properties they intended to buy, stated their frustration that they'd wasted their time.

McMachen, the Millionaire purchaser, is offering to sell some of the homes for near auction prices to individuals who are still interested. He says that this is actually beneficial to many potential buyers because they can view the homes before they purchase them, which one can't do when purchasing through a county auction. Additionally, McMachen intends to donate any of the homes that he is unable to sell to charitable organizations.

Tax foreclosures are only one example of the many deals that people are currently finding in the real estate market. If you live in the East Lansing or Greater Lansing area and would like to learn about homes for sale in your area, including Michigan foreclosures, please contact me at MyRealtorRob.

Michigan Seeing Fastest Comeback

It's becoming old news that the housing market and economy are slowly displaying improvements nationwide. However, Michigan, by far one of the most troubled states during the recession, is experiencing a more rapid comeback than many other states across the country.

Michigan home sales were up 10% through June compared to a national growth rate of only 5% (National Association of Realtors). Home prices have also seen a steady increase, spurring more homeowners to consider selling where-as they might not have considered it even a year ago. Home prices in the Detroit area rose for the twelfth consecutive month according to Standard & Poor's Case-Shiller index.

The housing market is not the only area that Michigan is showing a positive shift. Economically, the state has begun to  see other areas of recovery. In April and May, Michigan's retail sales grew while nationwide they fell .2 percent. The Michigan Retailers Association reported that more than half of the Michigan retailers who responded to their inquiries showed rising sales in May, the highest sales month since January. Business investors also remain hopeful according to a survey conducted by Wayne State University and Institute of Supply Management, which found that many southeast Michigan purchasing managers expect the business environment to improve or, at least, remain stable. 

Considering the steadily improving economy and housing market, now is a great time to buy or sell a home. If you live int the East Lansing or Lansing areas and would like information about current market values or homes for sale, please contact me at MyRealtorRob. I also specialize in the sale and acquisition of licensed rental property so please feel free to contact me by email for information about East Lansing rental housing.