Choosing The Right Realtor For You

Finding the right Realtor for you may take a little time. It's important to find one that you are confident can meet your needs. The decision to buy or sell a home is a big one, so make sure to choose a Realtor accordingly. 

First, ask people you know who have bought or sold recently if they worked with anyone they would recommend. Ask friends, co-workers, family, and neighbors. Since they have been through the entire process recently, they will know how helpful someone would (or wouldn't) be throughout the process. If no one you know has good recommendations, take a drive around your neighborhood and check out for sale signs. Is one company or person dominating the area? If so, it may be for good reason. Is there an open house nearby? If so, you will be able to see them in action and get an idea of what it will be like working with them. 

Once you have a few options, check out ratings and reviews. Many Realtors will have their own website, but keep in mind they are in control of the content posted there. As well as their site, look at third party ratings to get some non-biased feedback. Don't necessarily get turned away by one bad review, but look at the experiences as a whole and make sure the good feedback far outweighs the bad.

The next step is to interview some agents. Hear from them about their experience, track record, buying or selling style, marketing knowledge, familiarity with appraisals, financing, negotiation, inspections, etc. The important thing during the interview is to make sure you will work with someone you feel you can trust and who you will feel comfortable having guide you through the process. Therefore, make sure you ask the right questions:

• How many homes did you sell in the past year?
• How many of those were in the area I am interested in?
• What is your commission? 
• How will you market my home?
• Can you provide a list of references?
• If you are selling, find out how the Realtor will search for homes for you, how many you can expect to see, and how multiple offers are handled.
• If you are a seller, ask how the agent will market your home, how many photos will be posted, and what current buyers are looking for.

Lastly, set communication expectations. What means of communications will you be using most often? What is an acceptable period of time to get a response within? Make sure you know how you will be kept informed during the process. Setting this tone early will let you know if your communication style meshes, as well as set standards from the get go. 

It is also important to think about what to avoid in a Realtor. If you have a friend or relative who is a Realtor, think carefully before going to them. Make sure you are looking at their qualifications as carefully as you would for any other Realtor. Also, keep in mind how problems that develop through the process could affect your relationship. 

Keep in mind that a low commission doesn't guarantee a good Realtor. It is possible you will be getting what you pay for. The incentive of commission can play an important role in sales. An agent earning a full commission will have incentive to make handling challenges that come along a priority, where an agent earning a small commission would not have that same incentive.

If you are looking for a Realtor to buy and sell a home with, please keep me in mind. You can check out my website to get started. 

Buying Rental Property in East Lansing

     When looking to buy a rental property, you must be mindful of the transfer of the rental license. This post will provide a quick guide to ensuring that everything goes as smoothly as possible during and after your sale.

     Before buying a rental property, go into the Department of Code Enforcement and Neighborhood Conservation. Information for the East Lansing office can be found here. Once there, look at the rental file and included documents. Are there any concerns about the property that haven't been met? Next, look at the rental license. From this, you will be able to see how many people are permitted to rent, as well as any other conditions that need to be met. Staff should be able to answer any questions you have about conditions on your prospective license. Next, look at the most current inspection. Make sure any violations on the inspection have been corrected, and make sure you ask the seller about anything of concern. The staff will know if there is a history of violations at this property, as well as possible conditions resulting from violations. Lastly, obtain a payment history, and ensure there are no outstanding balances on the property. Make sure you address any concerns that come up during this process with the seller.

    Once you have reviewed the property documents and are pleased with your chosen property, it would be a good time to submit a new owner application to the Department of Code Enforcement and Neighborhood Conservation. Although you do have up to a year after the sale to submit this form, if someone is renting and this form is not completed, you could be charged for renting without a license, as the old license expires on the date of sale.

     After the sale, provide notification of the exact date of ownership to the Department of Code Enforcement and Neighborhood Conservation within 10 days, and the license, along with all pre-approved conditions will be transferred to you on the date of sale.

     I would be happy to help you find a rental property to fit your needs. Please feel free to visit my website and get started today.

Understanding Section 1031 exchanges

According to Inman News, Section 1031 exchanges "allows the seller of an investment or business property to postpone recognition of gain provided the seller acquires another, "like-kind" property within the timing requirements spelled out in the law."

Many real estate investors today, seeing the upcoming changes in taxes in 2013 and seeing the possibilities of facing the "fiscal cliff", are starting to do the calculations and see that this option for investments is worth looking into.

When you sell a property for more money than what you bought it for, the profit you make is known as a capital gain. A capital gain tax is a tax imposed on that profit. What a section 1031 exchange allows you to do is defer that tax and buy a "like property". This means that property investors would be able to put a larger chunk of their profit into investing in a new property. Since they were not taxed, they had more gain from the investment with which to put towards another, larger investment. With tax rates looking more and more like they will be on the rise in 2013, this option is peaking a lot of investors interests.

This deferment does have a downside though. It is a tax deferment system, not a tax forgiveness system, meaning that down the line it will come back around and you will still have to pay the tax you deferred. Also, when you do a 1031 exchange, this moves your tax basis to your replacement property, and subjects you to future tax rates.

More investors today are looking at the section 1031 option more carefully. With taxes seeming to be on the rise relatively soon, a deferment of this tax and a larger investment may be the better choice for many facing down bigger losses from taxes in the upcoming year.

Thinking of buying a home?

Joe Joseph, senior mortgage banker for Summit Community Bank writes "Rates are at historic lows coupled with the housing market at historic lows and it is a perfect time to buy a new home.  There are a few zero down programs and many low down programs that make it easy to buy a home.  We offer a 5% down, no monthly PMI program that saves $1000’s over the first 5-7 years.  Strapped for cash?  Take a look at our no closing costs option as well.  Don’t miss out on one of the best environments to buy or refinance a home."

Do you think that you're ready to buy? Here are a few questions to ask yourself to know if you're ready to jump in:

How long will I own it for?

Most people who are buying homes today say that they see their home as an investment. Spending more time in your home should give you more time for it to appreciate, as well as give you more time to do improvements throughout the house.

Can I afford it?

This is a big one. You want to make sure your investment is secure. It may not seem like a problem to have to tighten your spending in order to afford your home, but if its cutting into your lifestyle or other expenses you've come to see as normal, it may be a bigger burden than anticipated. Make sure you take a good look at what you are approved for and then see what it is you can afford. Make sure the decision you make is a smart one for you.

Have I done my research?

Have you looked into the neighborhood? School systems? What shape the house is in and what repairs will need to be made? Make sure you are aware of all aspects of your investment before you take the plunge.