Should You Buy a New Home or an Old One?

If you're thinking about purchasing a home, an important factor to consider is whether you're interested in a new construction or an older home. It's easy to overlook a few of the components that really set newly-built homes apart from their previously constructed counterparts. Look below for a  few of the pros and cons of each option.

New Homes

The Pros:

• Incentives: Many new homes come with a variety of incentives designed to appeal to potential buyers. Developers want a subdivision that's full, not a half empty one with For Sale signs set up on every third lot, which is why they offer a variety of perks to steer you in their direction. Incentives might include lower sales prices, extra features such as customized kitchens or money back at closing options.
• It's New: Well this is obvious, but there's something to be said for moving into a home that is untouched. It's free of the history, decor and stale remnants of its previous family or families. You get a virtual blank slate upon which to create the home that suits your specific tastes and styles. Newer homes also tend to be more modern and designed to fit current needs rather than those of the past.
• Fewer Repairs: Generally new homes will have fewer repairs and those repairs will costs less. From major stuff like electric that's up to code to new appliances, repairs in newer homes simply tend to happen less. 
• Young Community: This doesn't necessarily apply to age, though it can. Ultimately subdivisions with new homes means you get to be part of the community from the ground up. Everyone is in the same boat having purchased a new home in your community so making friends and organizing social gatherings may happen easier than approaching your neighbors in a community that's existed for fifty years.

The Cons:

• Higher Prices: New homes can get pricey especially if they're in desirable areas. Since everything has been purchased new, such as appliances, and a range of contractors performed services from plumbers to carpenters, costs can get rather steep.
• Location: Most cities and areas close to businesses saw homes built around them decades ago. Thus you may find if you buy a new home, you're commuting twenty or thirty minutes to work everyday. Choosing a new home often means living further out in the country, which can also mean higher taxes because the city pays more for water, sewer and other utilities. 
• Less Room to Roam: Many newer communities are divided into smaller lots, therefore, smaller yards or lawns. This can be nice for the mower in the family, but it can be a pain if you have kids and pets who want space to play outdoors.
• Bad Construction: Since a new home hasn't stood the test of time, you're walking in blind in terms of construction durability. Check the builder's track record and make sure that other homes he's built previously are still in good shape. 

Older Homes

Pros:

• Great Deal: The last several years have seen a definite spike in homes for sale, which bodes well for the buyer's market. Many people own their homes outright and may offer land contract financing or a lower price to sell a house that they no longer want.
• Charm: Many people love the character that is rarely found in newly built homes. From original hardwood floors to elaborate crown molding, many older homes are reminiscent of the era in which they were built.
• Established Area: When you buy an older home, you move into an existing community. Often these communities sprang up for a reason such as nearby schools, churches or parks. 

Cons:

• Maintenance and Repairs: Older homes have older appliances, furnaces and whole-house systems. When you buy a home, you may not be aware of certain issues such as a basement that floods every year or a section of the roof that is in poor condition. Home inspections can catch some of these potential repairs, but many will be overlooked, so it's a good idea to buy the home knowing that some maintenance may be necessary.
• Higher Utility Costs: Older homes are often less energy efficient because they use older appliances, may have poor insulation and drafty windows. Utility costs can get very high, especially if you live in a state such as Michigan with long, cold winters.
• Ghosts of the Past: Probably no literal ghosts, though you never can tell, but definitely you will see aspects of the home's previous inhabitants reflected in the home's design, wallpaper and decor. Plan to spend some time eradicating the old touches to make the home your own.

Whether you're in the market for a newly built home or an older house, I can help you find the perfect property for your needs. As an East Lansing realtor, I specialize in the purchase and sale of Lansing area homes. Please contact me today at MyRealtorRob. 

Real Estate: Buyer's Agents

When choosing to sell their property, most home owners contact several Realtors after researching agents in their area. They ask their friends and family for recommendations and interview possible realtors to make the best choice. They understand that it's important for the successful sale of their home to choose someone who has experience in home sales, knows their area and is connected to a network of potential buyers. Most home owners recognize that their house is on of their main, if not their primary, asset, which motivates them to take the selling process very seriously. However, few buyers put this kind of due diligence into finding a buyer's agent. Many of them simply fall in with a buyer's agent and rarely stop to consider whether they are the best person for the job.

Buyer's agents assist the home buyer in a myriad of ways from securing financing to understanding legal documents and closing paperwork. They help the buyer find a home of their liking, negotiate a sale price and ensure that all of the parties involved have the proper documentation on the day of closing.

When it's time to choose a buyer's agent, make sure you know what you want. For instance, some agents do real estate part time or as a second job, which may mean that they will have less time to show you homes. A realtor with a staff of five people might have plenty of manpower devoted to your housing search, but you may generally communicate with assistants instead of the realtor himself. You may also want to ask prospective agents how many clients their working with to determine how much time they will have for you personally.

Once you have made a decision, your realtor may want you to sign an agreement stating that you will work exclusively with them. This may seem a bit uncomfortable, but it's important to remember that your realtor is doing a lot of work behind the scenes, not to mention using their own money to drive to houses that you might be interested in buying while also spending time showing you homes. You can request an agreement that is shorter term in case you decide that you don't want to work with the agent further down the road, but do remember to respect the financial and time commitment devoted to your home purchase.

If you're considering buying a home in the East Lansing or Greater Lansing area please contact me at MyRealtorRob. As a Realtor with Tomie Raines, I can quickly help you find homes that fit your needs and wants while also assisting you with financing, understanding market values and connecting you with other housing resources.

Chase Offering Mortgage Relief...Finally

If you're one of many homeowners who has attempted to refinance your mortgage in the last several years with Chase, or any other large lending institution, you've probably been through the ringer. Many people discovered, after months of haggling with their mortgage companies, that they still lost their homes despite attempts at getting current on payments or working out refinancing options. Fortunately, the $25 billion dollar settlement between the nation's five biggest banks and the attorneys general and federal government means that Chase and several other banks are now offering refinancing options that actually make sense.

Chase has declared $4.2 billion in mortgage relief to homeowners, which they will accomplish by either reducing mortgage principals or lowering interest rates. The settlement offers more credit to those banks who modify more loans in the first year so Chase has moved quickly, assembling a team to sift through tens of thousands of loans and identify homeowners who qualify for one of the relief options. For the most part only those owners who owed more on their homes than they were worth or who were delinquent on their mortgage payments qualified.

Chase has already begun sending loan modification letters to homeowners. In fact, CNNMoney highlighted Michelle and Bob Irwin who received a surprise letter from Chase informing them that their  interest rate would be slashed and their monthly payment would be reduced by $229 a month. This was especially good news for the Irwins who were 20 months behind on their mortgage payments and fearing foreclosure.

This is also good news for many other homeowners who may see similar letters arriving from their own banks. It's also a positive shift overall for an economy and a housing market that appear to be gradually shifting back into the positive.

If you're a resident of East Lansing or the Lansing areas of Michigan and would like more information about buying a home, selling a home, or getting approved for a home loan, please contact me at MyRealtorRob. As an East Lansing realtor, I can offer you a free market analysis and help you determine how to get the most money for your home right now.

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.

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.

Creative Ways to Expand Your Living Space

When you first bought your home it may have been the perfect size - but several years later and the addition of a child or two, a few new pets and a basement full of Christmas decorations and winter clothes might have your house feeling a bit cramped. Without major renovations like knocking down walls or building additions, the hope of creating more space may seem impossible. However, creativity can always lend itself when you're faced with a difficult challenge, such as making space where there is none.

Try these tips to get more home out of your house:

Do Away With the Dining Room: Dining rooms are often an extra space filled almost entirely with a dining room table and chairs that rarely get used. Unless you host dinner parties on a weekly basis, chances are your dining room is sucking up much needed space in your home. Purchase a smaller table and place it in the kitchen for sit-down meals and let your imagination run wild with how you might use your newly freed space. Any number of possibilities exist from home offices to a new nursery. Take a tip from the Beverly Hillbillies movie and convert your dining area to a billiards room where you dine on the pool table or keep the pool table and stick with eating in the kitchen.

Spill Your Inside Outside: In Michigan, this isn't a year-round fix for expansion, but it's great for summer and often possible during the spring and fall as well. You can get really intricate here and build a new patio complete with outdoor wood burning pizza oven, jacuzzi and fire pit or you can keep it simple with nice patio furniture and some flowers pots. The major issue is whether it serves its purpose and people want to spend time in the space. If you want it to be available when it's raining, consider investing in a covered tent or gazebo.

Make Your Garage More Functional: Garages are great for cars and skis and lawnmowers, but they're also great for recreational areas, workout rooms and even man caves. I recently visited a house where half the garage consisted of leather couches, a flat screen TV and a refrigerator with beer and munchies. The man cave that might have been in the basement had been relocated to the garage to conserve space within the home. This also let's the man inhabiting the cave turn the volume as high as he wants and open the garage door to let some sunshine in if the whole cave thing isn't really his style. Just make sure to prepare your garage so that it's comfortable for the use intended. For instance, a craft room may not go well if it consists of a folding table butting up to a broken down Chevy that stinks of oil.

If you're buying or selling a home in the East Lansing area, please visit MyRealtorRob. On my website you can view my current Lansing area real estate listings, search the MLS and read articles about biuying and selling homes in Michigan.

Governor Snyder Approves Michigan's Housing Tax Credit Overhaul

Michigan Governor Rick Snyder recently approved the MSHDA's (Michigan State Housing Development Authority) Qualified Allocation Plan, which offers new guidelines for investors and developers taking advantage of the Housing Tax Credit Program in Michigan.

In the U.S., every state receives a certain amount of tax credits annually based on population. Michigan has seen decreases in population over the last several years, thus the total tax credits awarded has dropped as well. To make Michigan more appealing to developers and investors, the MSHDA overhauled their previous framework for awarding tax credits. In order to receive tax credits, developers must compete and they are scored on a variety of factors. If they are awarded tax credits, they can then sell them to investors and raise money to build more affordable housing.

The major changes to the plan are intended to promote community renewal in urban and rural areas with considerations for accessible transportation and other placemaking amenities. A few other changes included community support, cost containment and permanent supportive housing category modifications.

You can learn more about the specific changes at the Michigan State Housing Development Authority Website.

If you live in the Lansing or East Lansing areas in Michigan and are thinking about buying or selling a home, please contact me at MyRealtorRob. As an East Lansing realtor, I can provide you with a free market analysis, help you get pre-qualified for a mortgage loan and answer questions about life in the Lansing area.

Many Young People Not Buying Homes

Once upon a time you went to school, started a career, got married and bought a house. It was sort of like a template for life in the United States and a lot of young people strove to achieve each of those milestones. Today, the template and, more so, the grid that we lay it upon has changed dramatically. Recessions and bursting housing bubbles, struggling economies and overwhelming student debt are only a few of the major transitions that America has seen in the last decade. These changes have a variety of ripple effects on people's lives and one effect is that fewer young people are purchasing homes.

According to a February 2012 article in The Atlantic, half as many young people were getting mortgages between 2009 and 2011 compared to ten years earlier.  The article cites a range of reasons for fewer young homeowners including higher student debts, fewer marriages, decreased earnings and a recognition that many people lost big time investing in real estate. It's no wonder that these factors influence entire generations who might otherwise have walked the path of home ownership like their parents before them and their parents before them.

One young person who wrote into The Atlantic stating their reason for not purchasing a home said, "My generation wants more freedom to travel, to see and live in new places and to experience new cultures. In general, buying a home can seem like a rejection of freedom, and anytime one of my friends gets a home, I just can't help but think how restricted they now are, whether that's true or not." This implies a shift of priorities for younger generations, perhaps moving away from security and towards excitement.

Another respondent said, "I wish I had bought straight out of college. (...) Home ownership is a big commitment, but in my opinion renting is financial suicide." In this person's case, buying made more sense, especially after they spent years paying rent and still had no place to live unless they continued to shell out the monthly payment.

Ultimately buying a home, like most things, boils down to personal situation and preference. A young, single person loaded with student debt who likes flexibility may hate home ownership. On the other hand, young people who have graduated, found a good job and intend to stay put for a while could benefit from purchasing a home and building equity rather than giving their hard earned money to a landlord each month.

If you're considering buying or selling real estate in the East Lansing area, please get in touch with me at MyRealtorRob. With Michigan State University as something of a hub in our community, we have a lot of students and student families who like to purchase while they attend school. If that sounds like you and you would like to learn about the affordable East Lansing housing in the area, send me an email.

Save Money with Home Maintenance

It's easy to overlook home maintenance. After all, most of us subscribe to the old adage "if it isn't broke - don't fix it." Unfortunately, your home doesn't exist in a glass bubble. Instead it is exposed to you and your family, climate conditions, outdoor vegetation, pets and a variety of other elements that cause areas to slowly degrade. You can skip the maintenance, but at some point you will be faced with a hefty repair bill that could have been avoided with some basic maintenance steps.

Avoid Roof Repairs: Roofs are a costly expense, but you can minimize the likelihood that your roof will spring a leak or need to be replaced in the near future.

• Clear Debris: Clean all debris off your roof including leaves, branches and anything else that lands up there. Debris can hold water, which quickens roof deterioration
• Get Rid of Algae: If algae or moss is growing on your roof, clean it off and consider applying zinc control along shingle ridges.
• Ventilate Your Attic: Adding ventilation to your attic helps preserve the roof by reducing the temperature beneath the roof. You can hire a contractor to add vents to your attic or, if you're handy, it can be a weekend project that you do yourself.

Make Your Lawn a Priority: Many homeowners consider mowing their lawn to be the only necessary maintenance; however, neglecting your grass can lead to problems down the road.

• Mow Your Grass Higher: Its tempting to go for the close shave when you mow your lawn, but slightly longer grass reduces water loss, prevents more weeds from growing and strengthens the roots of your grass.
• Skip Fertilizer When it's Hot: Avoid using lawn fertilizer in the summer because grass is already taxed merely trying to survive in the heat. Fertilizer can have damaging effects when your lawn is too weak to handle new growth.

Clean Filters: Filters in your furnace and air conditioner need to be kept clean, otherwise you may find yourself roasting the summer and freezing in the winter.

• Change AC Filters: Change the filter in your air conditioner before summer begins and you start using it. Also make sure to change it once every few months while it is in use. Ensure that the exterior of the unit is clean of shrubs, mildew and dirt as well.

Basic home maintenance can save you thousands of dollars every year.

If you're in the East Lansing or Greater Lansing areas of Michigan and are thinking about buying or selling your home, please contact me at MyRealtorRob.

New Program for Struggling Michigan Homeowners

Michigan has been, by far, one of the hardest hit states during the housing crisis of the past several years. Rampant foreclosures left many Michigan residents scrambling to find housing amid an economy thin on jobs and heavy on unemployment. To combat these financial obstacles, the Michigan State Housing Development Authority (MSHDA) began offering a variety of programs to assist homeowners who were struggling with their mortgages for a variety of reasons from unemployment to overwhelming medical bills. On July 9th, Gary Heidel, executive director of the MSHDA, announced a new Modification Program to help underemployed homeowners in addition to revisions made to the Michigan's Hardest Hit Funds programs.

The new Modification Plan is designed to help homeowners who are struggling with their monthly payments. The maximum reservation for the program is $20,000 and the funds go to the lender for the delinquent amount so that the lender can modify the mortgage and reduce the owner's monthly payments. Homeowners who have a delinquent second mortgage can also take advantage of the program if their first mortgage is current.

In addition to the new Modification Program, Michigan residents have access to several other plans designed to help homeowners prevent foreclosure. These include the Unemployment Mortgage Subsidiary Program, the Mortgage Loan Rescue Program and the Principal Curtailment Program.

The Unemployment Mortgage Subsidiary Program: This plan makes payments directly to the lender in upwards of $1,000 or 50% of the owner's monthly payments for a period of 12 months.

Mortgage Loan Rescue Program: Designed to assist homeowners who are delinquent on their mortgage, this program pays funds directly to the lender to help the homeowner avoid foreclosure. The maximum allowance has recently been increased to $20,000.

Principal Curtailment Program: This program assists homeowners who have a mortgage principal that is higher than the home is worth and are also struggling to make their monthly payments. Homeowners can qualify for up to $10,000 in assistance, which is paid directly to the lender, but the lender must match the total assistance amount and reduce the principal accordingly. The total reduction helps the owner with more manageable payments while also decreasing the total amount owed on their home.

You can learn more about Michigan's variety of homeowner assistance programs at the MSHDA website. If you're buying or selling a home in the East Lansing or Greater Lansing areas of Michigan, please contact me at MyRealtorRob. In addition to providing a free market analysis, I can assist you in securing financing and finding the best loan option for your current needs.

Home Buying: Finding Your Dream Neighborhood

The home of your dreams often has a lot less to do with the size of the master bath than, say, the area that it's located in, the schools nearby and the community that the home is a part of. People often forget when shopping for their future home that much of their life will be lived outside of those neatly painted walls. When it comes to choosing the perfect home, it's usually more important to take a close look at the world surrounding the home including nearby parks, stores, neighbors and schools.

Neighborhood Considerations

• Quality of Schools: You can consider a variety of factors here including the school's location, average test scores, college-bound percentages and spending per student. Gather information about the subjects studied, the teachers' backgrounds and the quality of the school lunches. Check the area to see if alternative school options such as Montessori are available if you prefer to offer your children a more creative environment.
• Education and Income Profile: Consider the household income, education level, occupation and family type of a given neighborhood. You can find some of this information on The U.S. Census Bureau Fact Finder Website. You can also ask people living in the neighborhood and your realtor. If you're single and not intending to have kids, a family oriented community with playgrounds is probably not your best bet. On the other hand, families might do well to avoid communities where a lot of people rent or groups of students live.
• Amenities: This can include a whole range of options from museums to bakeries. Spending Sunday mornings walking two blocks to buy homemade donuts and coffee can be the makings of a dream home so consider what you really love to experience and choose a neighborhood that makes this a possibility.

If you're thinking of purchasing a home in the East Lansing or Lansing areas of Michigan and would like to learn about the right neighborhood for you, please contact me through my website at MyRealtorRob. As an East Lansing Realtor and resident, I can point out popular communities, desirable area amenities and homes that are in your price range that also fit your neighborhood profile.

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.