Metro Detroit Home Prices Rise while National Prices Fall

Home prices in Detroit saw a 13 percent increase in February over the same month last year, which marks the 8th consecutive month of rising Detroit home prices relative to last year. While home prices around the country fell for the fourth straight month in December 2011, housing prices in Detroit actually increased. Detroit has often been known to set itself apart from other major U.S. cities; however, it is a rare event to see the city coming in on the positive end of the financial spectrum. According to the Standard & Poor's Case-Shiller index, as prices around the country fell, Detroit saw an increase of .5 percent during December and has now seen a considerable jump of 13 percent for February 2012.

Robert Dye, a Chief Economist at Dallas-based Comerica Inc., reported the data to be encouraging; however, he warned that "it is still too early to say that residential real estate markets in the Detroit area have definitely turned the corner," (Detroit News). Dye believes that housing affordability combined with low mortgage rates is attracting a lot of buyers to the market. The most notable increases took place in Livingston and Macomb Counties, both of which saw jumps of more than 23 percent over last year's figures (Detroit News).

Ultimately this is good news for Michigan. Perhaps the housing market is beginning to turn around. If you're in the market for a home, buying now before prices rise further makes sound financial sense. As a realtor in East Lansing and the Greater Lansing areas of Michigan, I can attest to an improvement in the market as buyers find more appealing finance options and sellers continue to be flexible with prices. If you would like more information about real estate in the Lansing area please visit MyRealtorRob.

Detroit, Michigan

Will the Housing Crisis End in 2012?

According to a recent article on DSnews.com, there are several reasons to believe that 2012 may signal the end of the housing crisis. This conjecture mainly stems from a report released by Capital Economics citing that loosening bank standards will allow more people to borrow money for housing purchases.

A variety of other market indicators are also contributing to this conclusion. For instance, lenders are now offering loans to borrowers that are 3.5 times their earnings, which is an increase from the low of 3.2 times borrower earnings during the crisis. Additionally, many banks are becoming more flexible with their LTVs or Loan to Value ratios, up to 82% from the low of 74% reached in 2010.

While the loosening bank standards are a huge benefit for anyone searching for a home, other factors may also contribute to an improved housing market. Many housing prices have moved into more acceptable (i.e. affordable) ranges compared to home prices during the height of the housing bubble. Homes simply cost less now, which is a great incentive for anyone looking to buy. Furthermore, a lot of homeowners have begun to offer creative financing alternatives like land contracts and rent-to-own options to reach buyers who can't qualify for conventional mortgages.

As an East Lansing, MI realtor, I can offer first hand experience of the housing market and from where I'm standing, the outlook is good. People who have been renting during the crisis are beginning to purchase homes because the prices are often less than the cost of rent. The growing rental population has also motivated a lot of real estate investors to purchase rental properties, especially in East Lansing where Michigan State University always provides a thriving rental community. If you would like more information about buying or selling a home in East Lansing or the Greater Lansing area, please contact me at MyRealtorRob.

If you think hiring a professional is expensive, wait till you hire an amateur - Red Adair

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Short Sale Process

What is a short sale?

Stated simply, a short sale occurs when a lender or bank enters into an agreement with a borrower to accept less than the full balance of their loan at a sale. The borrower owes more on the home than current market value making it nearly impossible for them to sell the home without taking a loss. In times past, bank short sales were a rare occurrence. What bank after all is willing to take less than the amount borrowed for the sale of a home? Well it turns out quite a few. Especially these days when foreclosures are at an all time high and many individuals simply cannot afford to keep making their mortgage payments.

Who qualifies for a bank short sale?

The specific qualifications vary; however, individuals who can no longer make their monthly payments and are experiencing financial hardship may qualify to sell their home short.

The Short Sale Process:

Submit a request to sell short. Before any home sales can begin, the homeowner must submit a request to their lender seeking approval to sell their home for less than they owe on their mortgage. Generally at this time, they will submit a short sale package, which includes the listing agreement, executed purchase offer, the buyer’s letter of pre-approval and any supporting documents for the homeowner (financial statements etc.). The seller must provide adequate documentation including pay stubs, bank statements and other financial hardship evidence to encourage their lender to accept their request.

Purchasing a Short Sale

If you are buying a short sale, have patience because the process is more complex and may take longer than a conventional home purchase. Offers placed on the home are approved, countered or rejected by the lender, not the homeowner, and ultimately the lender’s goal is to recoup as much of their initial investment as possible.

Short Sale Tips

• Foreclosure can still occur during the short sale process and postponements are not guaranteed so pay close attention to foreclosure dates.
• Check for additional liens. Some homeowners will owe additional debts, which have become liens against their property. Investigate all potential liens before initiating a short sale.

Short Sales in East Lansing Michigan

If you have any questions about buying a short sale home or selling your home short, please contact me at MyRealtorRob. As a seasoned realtor in East Lansing and Lansing, I have dealt with a variety of short sales and understand the ins and outs of the process.

Find more information about short sales at KnowYourOptions.com.

Love Yourself This Valentine's Day by Selling Your Home

This Valentine’s Day, rather than give Hallmark your hard earned cash for a cardboard cliché, pour your love into your home. Valentine’s Day is really just an excuse to spread the love after all, so why not direct it towards something that can bring you happiness and alleviate the stress of paying double mortgages or feeling trapped in a home that you’re dying to unload. Follow the 4 tips below and get ready to see the home offers flooding in.

Bake something sweet and savory: This is a “killing two birds,” move because not only have you baked your honey a delicious Valentine’s Day treat, you’ve also made your home more…homey. The smells of baking are bound to draw any buyer into a nostalgia induced buying frenzy. At the very least, the smells will create a warm, inviting atmosphere that buyers (especially those with families) will enjoy.

Set the Stage: Forget mood lighting and rose petals, this Valentine’s Day, get your house ready to sell with an increasingly popular technique called staging. According to a 2011 article on CNN Money, staging can be as simple as rearranging your furniture or as complex as purchasing new fixtures, painting and redecorating all together. The idea is to transform your space to highlight your home’s best features while simultaneously making it very easy for your potential buyer to imagine living in it.

Take It Online: Not to EHarmony or some other dating site, but to the places where buyers go. Think Trulia, Zillow and websites catering to buyers. Make sure that your home appears on these sites with a variety of photos and plenty of home details, otherwise buyers won’t bother contacting you.

Offer Some Freebies: It’s hard to view selling your home as a competition, but in a market where buyers have the upper hand, it is one. Think of those old dating shows where the contestant behind the curtain highlights all of their quirky attributes. If they said the same thing as every other contestant, they wouldn’t stand out and they wouldn’t get the girl. Go the route of the underdog and offer some incentives to set your home apart. Offer to pay for closing costs, have your yard professionally landscaped or throw in a flat screen TV. You never know what perk will be the one to hook your buyer, so get creative.

If you're buying or selling a home in East Lansing, Okemos or the Greater Lasning areas in Michigan and need some more tips or just want to find out what's available, get in touch with me. If you're looking for the biggest and bestest Valentine's Day gift of all time, check out my current property listings and give your sweetie a present that they will not soon forget.

5 Reasons To Buy Rental Housing Near a University

It may not be time to go back to school, but that doesn’t mean you shouldn’t be frequenting college campuses. These property gold mines are profitable and sound investments and, depending on your location, can be more than affordable. For instance, I have several East Lansing, Michigan rental houses listed, just blocks away from Michigan State University, that are priced under $200,000 and two that are priced below $150,000. For homes that rent in upwards of $2,000 plus monthly, that can work out to be a very good investment.

According to a recent article by Ann Brenoff published on AOL Real Estate, college housing investments have thrived while most other housing markets have declined.  Brenoff cites increasing college enrollment that is not coupled with growing housing options, thus creating an opportunity for property owners to cover their mortgage and see some positive cash flow.

This isn’t an investment strategy for seasoned veterans only. Many parents of enrolled students and students themselves have begun to purchase property near their universities. For instance, Zac Bissonnette, a 2011 graduate of the University of Massachusetts, bought his first near-campus investment property his freshman year of college and his second year bought another one. He found that he easily covered his condo payments and had additional money to spare.

5 Reasons to Buy Property near a University

• Large population of potential tenants (students) for the foreseeable future.
• Students generally don't pay for their rent; their parents do, which increases the likelihood of timely, consistent payments.
• If your child attends the university, an expensive rental payment is alleviated and you can make money!
• Housing near campuses attract more than students. Think professors and university staff.
• University towns often have a lot of appealing amenities, which helps keep property values stable. For instance, in East Lansing we have an amazing variety of ethnic restaurants, great eclectic shops and a myriad of fun venues to check out.

East Lansing, MI

Obama's Home Refinance Expansion

Good news for homeowners struggling to stay on top of hefty mortgage payments. President Barack Obama has announced plans to improve the American economy by offering further relief to homeowners through expansion of HARP (Home Affordable Relief Program). Homeowners who qualify will be able take advantage of low mortgage rates, which may save owners who qualify around $3,000 per year.

Ultimately this program will not help everyone. It's designed for homeowners who hold private mortgages, but have still maintained their credit. Read more about Obama's Refinance program in a recent article published on Forbes.com.

If you're a homeonwer in the East Lansing or greater Lansing area of Michigan, and would like to learn more, please contact my trusted lender at Providence Mortgage. For all of your other real estate questions please visit my website.

Remodelling Your Home on a Budget

You might be thinking of remodeling your home for a variety of reasons. In some instances, you merely want to improve it for your own quality of life. One more bathroom leads to less early morning shower battles and that updated kitchen means your family actually wants to enjoy dinner together. Others decide to remodel when it's time to sell their home. Buyer feedback can cue sellers in on some major areas of improvement or just a few ways to maximize their sale price.
Fortunately, remodeling is becoming easier as sellers learn some important DIY (do it yourself) techniques, which help them to improve their house while keeping costs low.

A recent article in the Detroit Free Press highlights Habitat for Humanity Restores as one avenue for bargain remodelling. As a realtor in the East Lansing area, I know a variety of homeowners and contractors who visit restores when it's time to update their houses. You can find a plethora of building and remodelling treasures from nearly-new appliances to marble counter tops.

Of course, before you start loading up on home improvement materials, you will want to know what you're doing. In the technology age, this is becoming easier every day. Hop on Youtube.com and you can find thousands of video tutorials on pretty much every home remodel project know to man (or woman). Visit your local library and check out books (for free) on unique painting techniques, bathroom plumbing and much much more. You can also attend free how-to workshops at Home Depot and several other home improvement stores.

I've seen first hand how updates can make or break the sale of a home. Unless you're selling a fixer-upper, your buyers want a home that's ready to be lived-in. For instance one seller that I represented, who sold their home in East Lansing, needed only to repair an ailing roof and add new paint to the interior to find a happy buyer. The recommendations vary when it comes to getting the most bang for your buck on remodel projects. Bathrooms and kitchens are nearly always a good idea. However, you know your home best. What does it need to great? Do that.

5 Reasons Why You Should Buy a Home in 2012

Home buying has seen its ups and downs over the years. Fortunately, as we move into 2012, the market is primed for those ready to purchase a new home or buy an investment property. The steady decrease in housing prices has created the perfect buyer's market. That dream home that was unaffordable five years ago now sits perfectly in your price range. Those investment properties are priced just right to bring some positive cash flow into your life. And let's not forget the surplus of lenders offering rock bottom mortgage rates.

Like any major decision, home buying should be a well thought-out process, but with the right realtor, you can receive expert advice and discover a myriad of homes that are suitable for your budget.

Top Ten Reasons to Buy a Home in 2012

1. Value: Purchasing a home right now means you're getting a great deal and securing a sound investment. Home prices are so low that you're bound to see a future increase.
2. Low Interest Rates: This one clearly is a no-brainer. There is no better time to purchase than when the banks are bending over backwards to lend you money at a very affordable rate.  
3. Low-Deposit Options: According to a recent article in the Guardian, low deposit mortgages are making a "strong resurgence." These mortgages are especially helpful to individuals or couples who don't have access to a lot of down payment cash.
4. Access to Information: Home buyers of the 21st century have the unique advantage of being instant home buying experts. Simply hop online and you can search properties for sale in your area, read lender reviews and hunt for the best realtor to represent you.
5. Rent is Going Up: For most people, the alternative to buying a home is renting one; however, a recent article published on AOL Real Estate cites a nearly 4% rise in rental costs in 2011, while home prices dropped almost 2%.