Hawk Nest – A Great East Lansing Community for an Active Lifestyle

If you’re looking for one of the best new constructions in East Lansing, Hawk Nest might be just what you’re looking for.

Hawk Nest is a friendly, active, and diverse neighborhood located in north East Lansing, Michigan. The community was built by Mayberry Homes starting in 2003 and has over 300 single-site condominiums.

The centerpiece Hawk Nest’s active culture is the 20-acre Hawk Nest Park, which is run by the city of East Lansing. The park has playground equipment, a walking path, picnic shelter, and lots of open space.

For walkers, runners, and bikers, the Northern Tier Trail runs along the north and east sides of Hawk Nest, giving residents a perfect place to get their workouts in. Some residents even use the trail to bike to downtown East Lansing.

If you’re a golfer, the highly-rated 9-hole Falcon Golf Course borders Hawk Nest to the north, and the 27-hole Hawk Hollow Course is just a two minute drive from the from the neighborhood’s main entrance.

For dog-lovers, in addition to Hawk Nest Park, Northern Tail Dog Park is a two-acre, double-gated, off-leash dog park enjoyed by many of Hawk’ Nest residents. Northern Tail is located just north of the East Lansing Softball Complex along the Northern Tier Trail, less than two miles from Hawk Nest.

There’s also no shortage of great food nearby, including the popular Jimmy’s Pub, Lou and Harry’s Sports Bar and Grill, and Maru Sushi & Grill.

If you’re looking for a home for you and your family, Hawk Nest is very nice neighborhood, especially if you live an active lifestyle.

To research properties for sale in the neighborhood, use the Advanced Search tool at myrealtorrob.com. Enter East Lansing as your city and Hawk Nest for the subdivision to see everything that’s available.

I do a lot of work in the area and would be happy to show you around any time you’re available. Just give me a call at 517-853-6259 or send an email to rbuffington@tomieraines.com.

Glencairn: An East Lansing Neighborhood with Much to Offer

Glencairn is one of my favorite East Lansing neighborhoods, especially for anyone who works at or attends Michigan State University.

Glencairn Neighborhood in East Lansing

Located a few blocks north of MSU, Glencairn is far enough away that you’re not caught up in the “on-campus” activities, but it’s still close enough that I often see residents walking to and from campus, weather permitting of course.

The neighborhood is bounded by West Saginaw Street to the north, Abbot Road to the east, and West Grand River Avenue to the south.

It is home of the highly-rated Glencairn Elementary School and just a few blocks from East Lansing High School, which produced seven 2013 National Merit Scholarship semifinalists, two National Achievement Scholarship semifinalists, and the 2013 Div. 2 state champion boys soccer team.

Most of the homes in Glencairn were built in the 1920s. Here’s a link to the Glencairn Neighborhood Association, which has a PDF of an original investment brochure for the neighborhood from 1926.

Today, Glencairn has a wide variety of building styles, from condos to traditional ranch homes. The variety means there is also a wide variety of real estate prices for properties. There are condos that can sell for less than $100,000, while the largest properties can go for $750,000 or more.

That means, whatever your place in life, if you’re looking for a really nice neighborhood, Glencairn might be great place for you to consider.

And if you’re looking for investment property, I can help you find a great property and help you find one of the many graduate students who rent property in the neighborhood during their studies at MSU.

I am very familiar with Glencairn and the surrounding area and would be happy to show you around the neighborhood. Just call me at 517-853-6259, or send an email to rbuffington@tomieraines.com.

To research properties in and around this area, use the Advanced Search tool at myrealtorrob.com. Enter East Lansing as your city and Glencairn for the subdivision. That will give you a list of everything that’s currently available.
 

Real Estate Inventory for July

According to realtor.com, real estate inventory has increased from May to June. Although inventory is still off about 7.3%, but the number of listings is still up 4.3% from May to June.

Inman news explains the increase in inventory by stating "real estate observers have speculated that home price gains might spur more homeowners to put their properties up for sale- and for builders to break ground on more new homes." However, this increase could also simply be a normal seasonal increase.

If you have been thinking about putting your home for sale, and are wondering if now it the right time for you, start by visiting my website.

Real estate industry observers have speculated that home price gains might spur more homeowners to put their properties up for sale — and for builders to break ground on more new homes. - See more at: http://www.inman.com/2013/07/15/inventory-shortage-eases/#sthash.8w4mtetd.dpuf

Real estate industry observers have speculated that home price gains might spur more homeowners to put their properties up for sale — and for builders to break ground on more new homes. - See more at: http://www.inman.com/2013/07/15/inventory-shortage-eases/#sthash.8w4mtetd.dpufreal ests

Real estate industry observers have speculated that home price gains might spur more homeowners to put their properties up for sale — and for builders to break ground on more new homes. - See more at: http://www.inman.com/2013/07/15/inventory-shortage-eases/#sthash.8w4mtetd.dpuf

Real estate industry observers have speculated that home price gains might spur more homeowners to put their properties up for sale — and for builders to break ground on more new homes. - See more at: http://www.inman.com/2013/07/15/inventory-shortage-eases/#sthash.8w4mtetd.dpuf

How to Keep Good Tenants

Taken from Personal Real Estate Investor Magazine

Between leasing fees, cleaning costs and lost rent, you lose money when you lose a tenant, so you want to keep good tenants as long as you can. Here are five tips that will help you retain good tenants once you find them:

Be Responsive: “I can’t overemphasize how important it is to be responsive,” says Kevin Conlon, co-founder of Meridian Pacific Properties. “If the A/C isn’t working, it’s an emergency. Anything related to the comfort of the tenant is an emergency. Get out there. Everything else needs to be handled as quickly as possible.”

Listen: Tenants want to be heard. You don’t have to agree with what they say, and you certainly shouldn’t bend the rules for them, but you need to listen to them, even when they’re angry. Conlon suggests looking for those interactions as an opportunity to solve their problem, if you can. Good tenants will appreciate your efforts.

Inspect the property: Regular inspections can actually help you retain tenants. Not only do inspections help you identify which tenants are doing a good job maintaining the property and which ones are not, inspections can also alert you to issues that bother the tenant but not enough to call you. By fixing these minor issues, you gain a lot of good will with the tenant.

Reward them: Let tenants know they’re appreciated. Once a year, maybe before Thanksgiving or Christmas, send a $25 gift card with a note. “You do something like that, and it goes a long way in developing a good relationship.” Conlon says.

Don’t raise the rent: If you want to keep a tenant, don’t raise the rent. Tenants don’t understand- or care- that your taxes, insurance, or other expenses increased last year. They don’t even necessarily care that the market rate has gone up. “All they know is they are paying more and not getting anything extra,” says investor Aimee Elizabeth. “They will instantly start looking for a new place to live.”

Big Changes in Real Estate Sales

by Debbie Barnett, president and owner of Tomie Raines, Inc.

     "Unit sales in greater Lansing were up 15.5 percent in 2012 and more units were sold than any year in the last seven. We have had three straight years of unit growth. Average prices were up by nearly 3.8 percent which was the highest since 2007, however the average was almost 31 percent lower than 2006. The absorption rate, which is a measurement of the current housing supply divided by the current rate of sales expressed in months of supply, dropped to 4.9 months which was the first finish below six months in many years. Demand is beginning to exceed supply in many price categories.
     "So what is the solution for this inventory shortage?
     "Home owners who have a need for more space, a better neighborhood, or a better quality home need to understand that selling their current home for less than their desired price will be more than offset by the discounted price on the home they will be moving up to. They can take advantage of the current high demand by first time buyers and investors and move to a home where the price is more attractive to a small buyer pool. Before mortgage rates rise, move up buyers can lock in an attractive rate on a higher priced home and reduce the cost of home ownership for years. This category of seller is expected to be more than 75 percent of residential sales this year.
     "Home owners who are candidates for a short sale need to act while mortgage forgiveness remains non-taxable for the rest of 2013. Even though such a transaction will result in a blemish on their credit, by acting now they may be able to re-enter the home buying market in as little as two years.
     "I think 2013 is going to be a good year for sales of residential real estate and if the demand and the supply of inventory align, it could be a great year. Regardless, whether you are a buyer or seller, now may be the time to make your move and take advantage of the market movement. Consulting with a professional REALTOR®  with a thorough understanding of the market dynamics should be the first step."

Searching for Homes Online

Most people looking to buy a home today will start their search online. Buyers can search from the privacy of their own home, and do their searching on their own time, which is especially helpful for those beginning their home search. But some ways of searching are better than others. Here are some tips to make the most out of searching for homes online.

1. Know where sites like Trulia and Zillow are feeding in from for the location you are looking to buy in. In some locations like Chicago and Boston, Trulia feeds in from the MLS, which will have very accurate listings. However, in other locations, third party sites like these are not connected to the MLS, and can have gaps in homes that are available. Up to 36% of properties listed on their site have been found to be no longer for sale. This can be discouraging, finding a home that meets your needs, using time to look into it, and then finding out the property is gone.

2. Realtor.com, (which just underwent a redesign to make it more consumer-centric) will feed from the MLS, making its posts very likely to be accurate and complete.

3. Realtors' consumer facing websites (like mine, for example), are updated by the Realtors working with the properties, and are usually kept accurate as well. Also, many Realtors' sites will allow you to find any properties on the MLS in your preferred area as well. You can also find other neat features, with ways to compare locations, and find out great things about the area from those currently working in it.

I would love the opportunity to work with you to find your next home. Start your search today on my website.


Sources: Inman1, Inman2, Inman3, Inman4

4 Qualities to Highlight when selling your home

1. Materials: If your home’s finishes include materials that your agent feels are particularly desired by buyers in your area, you might want to call those materials out in your home’s listing. Counter tops, flooring, and architectural details can all be appealing to buyers with the right materials. 

2. The properties best features: Think about what your house offers that other homes in your area don't. What makes you love your house can also be what helps sell it. Make sure you are talking up your homes best features.

3. Floor plan: People want to know what living in the space is like. If it has an open floor plan, describe its light and open. If it has several levels, it might be great for a family with kids who need their own space. Its important to be accurate with these descriptions. Don't describe it as something its not. If you aren't sure how to describe it, consider letting the pictures do the talking.


4. Nearby amenities: If your home is close to conveniences, make sure to talk about it. Schools, restaurants, activities, parks and shops close to your home can all help sell it. Consider giving exact distances to certain locations, as phrases like "walking distance" can mean different things to different people, as well as excluding some house hunters.

I would love to help you to sell your home. For more information or to contact me, check out my website.

The Most Popular 2012 Real Estate Questions

How are home sales?

Unit sales in greater Lansing were up 15.5% in 2012 and more units were sold this year than any year in the last seven years. Average prices were up by 3.8% which was the highest since 2007 but almost 31% lower than 2006.

The absorption rate dropped to 4.9 months last year which is the first finish below 6 months in many years.

We have seen three straight years of unit growth.

If I have a less-than-perfect credit score, how hard is it to get a mortgage?

Lenders reserve the best rates for borrowers with at least a 720 FICO score, but that doesn't mean anyone else will be denied. You can still get a mortgage with a lower credit score as long as everything else is solid financially. With a lower score, you may be paying higher interest rates as well. Your best bet is to look for homes in a location with stable pricing. This will look more appealing to banks than a location that can fluctuate in value.

What’s going to happen to home sales this year?

Inventory of existing homes is dropping and affordability is still good. Mortgage rates are at historical lows and expected to stay close to this level for the foreseeable future. Lending standards are high but comparable to pre-bubble underwriting standards which were not insane. The local economy is strong and employment is growing. All of these factors lead us to believe the sales of homes will be strong and that prices will rise as a seller’s market develops.

Which is a better investment, a new home or an existing one?
Builders have discounted prices so much that the premium for a new home in some markets has nearly disappeared. New homes that went up during the housing boom were large and packed with amenities that are rarely found in older homes. Assuming a new home and a used home are about the same size and are in the same location, a new home is probably the better investment (assuming that it's well built). Also, with some new builds, you can add details to meet your needs, making it more personalized.


I am underwater with my mortgage. How long is it going to take for the market to recover to the peak?

Even though average selling prices have improved, no area markets are even approaching the pre-bubble average prices. At a “normal” price appreciation of 3.8% it could take 8-10 more years for a complete recovery.

Government supported programs to encourage lenders to negotiate short sales are kicking in and the process though still time consuming appear to be getting better. The amount of mortgage forgiveness will still not be taxable at least through 2013.

What is a good rule of thumb for how much to spend on a home?
There is a general rule of thumb that says to stay close to within 2.5 times your annual income. This leaves breathing room so that if something came up, you shouldn't be stretched too thin. This rule, of course doesn't apply to every circumstance, and you should consider your personal situation carefully as well. 

I want to sell my home but I need to get a higher price than my agent says its worth. Should I just test the market and list at a higher price?

What will determine the value of your home is what a willing and able buyer is willing to pay and what a professional appraisal says its worth. The appraisal will be based upon what comparable properties sold for in the recent past, adjusted for condition, features, and location. What does not affect the value of your home is what you paid for it, what you owe on the home, what you need to net from the sale, the cost to build today, or what an agent says without substantiation.

Overpricing at the outset of a listing will reduce showings and reduce the number of potential buyers. Even if a buyer was willing to pay an inflated price a lender will not provide financing for more than the appraised price and cash buyers often make their offer contingent on appraisal. Your overpriced listing will just make comparable listings look more attractive.

I’m thinking about buying a foreclosed property because the lenders are discounting them to get them off their books. What are the risks?

Some foreclosures can be a good value but all foreclosures are not. These types of properties are called distressed because of the circumstances of sale but in fact the condition of the properties are often distressed as well. Many times homes, which are often vacant, have missing appliances, HVAC, pipes, mold contamination, and a variety of other damages. Buyers must be careful to fully understand what it will take to get the property to a livable state and properties should be inspected at the last moment to see if conditions have changed. Often times, negotiating a fair price for a “normal” listing may have a better outcome for a buyer.

I have considered buying a home that was a short sale. Are there risks?

Although short sale prices can often be negotiated at less than a normal market price there are caveats. The time it will take to conclude a transaction varies from lender to lender and the process is often protracted and unpredictable.  Just being able to close a transaction successfully is not assured.

Patience and flexibility are required of potential short sale buyers. Careful inspection of property condition is advised as well.

Make certain the agent you are working with is experienced in short sale transactions or has professional assistance.

What improvements should I make to help sell my home?
Great kitchens and bathrooms can help sell homes quickly. Keep a budget in mind, and take personal taste out of it, since this is a house you will be leaving anyway. Also think about repainting, cleaning the inside and yard, and making any necessary repairs to the house.

I would be happy to answer more questions, or to help you find or sell your home. Contact me at lansingarearealestate.com

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Getting the most out of refinancing

Refinancing your home can have great benefits, giving you lower interest rates and lower monthly payments on your mortgage. However, you should be aware of the costs and added expenses you can incur from doing so. These costs aren't always obvious, and making yourself aware of them will help you make the best choice.

You are probably focusing your decision on one or both of two main factors: interest and payments. How you go about lowering these is very important. For example, some refinance options will reset the term of your loan. If you have been paying on your home loan for 10 years and had 20 years left of payments, and you reset this term to 30 years at the start of your refinancing, your payments will go down simply because you are paying the same amount over more time. To combat this, keep your new mortgage term to the same or less than the existing one.

Another cost to think about is cashing out. This could add to your total debt in the long run. If you have done several refinances over time and added a few thousand to the loan to help with closing costs, you have added a large sum of money to your total debt. This isn't a normal cost, but it is one to consider when thinking about refinancing.

A helpful tool to use when thinking about refinancing is the recapture period. To figure this, take the closing costs and divide them by the monthly savings. For example, if you pay 2,000 in closing costs, and get a $125 dollar reduction in monthly house payment, it will have paid for itself in just 16 months. This can be helpful to consider when weighing benefits of refinancing.

If you would like advice refinancing your home, contact me at myrealtorrob.com

The Fiscal Cliff Deal

            As the fiscal cliff quickly approached, a decision was finally made to avert it. President Obama signed it into law a day after the House and Senate approved the legislation. Here are some main points of the deal that was made:

            A payroll tax reduction that was enacted in 2011 was not extended, leading to an increase in payroll taxes. The goal of this tax cut was to give workers more take home pay in order to stimulate. That cut ended in 2013, and since it was not renewed, the payroll tax will increase. Before the tax cut was enacted, the payroll tax was 6.2 percent, brought down to 4.2 percent in 2011. Since it ended, the tax will return to 6.2 percent. Employers have until mid-February to begin taking the added money out of paychecks.

            Estate tax rates will rise from 35 percent to 40 percent for estates valued for more than $5 million dollars. Republicans did however succeed in building in a provision, which allows the amount of the exemption (currently five million dollars) to be indexed to the rate of inflation.

            The bill also extends unemployment insurance for those actively seeking a job. It also delayed the sequestration, which would take multiple thousands from the budget. The sequestration was pushed back by two months. About half of the budget will be made up for through defense cuts, and the other half will come from non-defense cuts in spending. 

In 2013, Consider an Investment Property

 The investment market in Greater Lansing is hot right now. With students from MSU flocking to find off campus housing in downtown East Lansing, there is fantastic opportunity to have a profitable investment property in the area.  The important thing is to do your homework before jumping in.

A good first step is to look into your area. A seller can downplay negatives about an area, or over embellish how many students look at that area. Therefore, it is necessary to look into it yourself. Check the rental listings for the neighborhood and drawn your own conclusions as to whether student budgets could meet them. If the area you are looking at has an average rental rate of $1200 per person, and a nearby area rents for an average of $500 per person, more students will probably flock to the cheaper area more often.  You can also talk to neighbors about the area. They have lived there for a while and have seen who comes and goes. Keep in mind that you can also confirm any information that you are worried about with your Realtor.

It’s also important to keep in mind how you plan to manage the property. If you will actively manage it yourself, you may want a property that’s reasonably close to where you live. This way, if issues come up with tenants or small repairs are needed, it won’t be a hassle to make a trip. If you are going to have another person or a management company manage it, the proximity to your house will be less of an issue.

In the end, you will definitely want to make sure that you have someone who can help you with several different aspects of the investment property transaction. It’s critical to find a Realtor that is well versed in the guidelines and restrictions around licensing (like myself), to make the transition to rental property owner a smooth one (see my post on rental licensing).  It’s also beneficial to work with someone that specializes in investments and has possible additional knowledge or certifications in this niche (which I do). So, if you would like to look into your first rental property or your fifteenth, I would be happy to speak with you.