What Is the Cost of Renting vs. Buying?

This is a question many people begin asking themselves when they first consider a home purchase. They start thinking about the cost of rent versus the equity they could be building in their own home. While buying is the American Dream, it can be hard to know the right time to move from renting to buying. To know which is better for your situation, you have to do some calculations.

What Goes Into the Decision

While there are a lot of factors to consider when deciding to rent or buy, the financial aspect is one of the most important. You can use any one of several calculators online to help you determine which option is better for you financially. However, you should know what information is being used in each choice.

For renting, you not only consider the monthly amount you pay but any renter's insurance and the security deposit you must include. Rent goes up so you have to figure in the cost of rent appreciation over time.

To figure in the cost of buying, you start with the purchase price and include the down payment along with any closing costs you have to pay. Then, you add in the monthly mortgage payment along with property taxes and insurance.

Maintenance is added in while deductions on your taxes for interest and property tax are also calculated. To get a true estimate, you have to figure how long you will be in the home, the price you would get for selling and any closing costs you would pay as a seller.

Several assumptions are used in the calculations such as the mortgage rate, your income tax bracket, and how much the home will appreciate over time. The end result is the total cost of renting or buying over time. While some of the information will require estimating such as future appreciation, it can help you understand your options when you see the numbers in black and white.

An Investment

While buying a home is often an emotional decision, it is also a financial investment in your future. For this reason, it is important to look at facts and figures to help you determine if you are ready to buy and how much you can afford.

If you have decided that now is the time to buy, give me a call and we can get you started on your way to the American Dream.

How to Optimize Your Ad

According to many experts and statistics from the last year, it has become evident that the housing crisis is past and home prices and sales are on the rise. Even in international markets that have been seeing sharp declines, housing seems to be leveling out. Regardless of where your market is located, it is highly likely that your buyers will be using the internet to find their properties.

It is important to optimize your ad campaigns now to take advantage of this year's busy season. Here are a few recommendations to help you get the most traffic to your ads and see greater success in conversions.

1. Use Keywords

Based on a study of keywords for real estate advertisers, there are four areas that should be the focus.

Brand terms

Many advertisers think their own brand will show up in organic listings but this is not always the case. You also don't want your competitor bidding on your brand.

Sales or Rental Terms

It is worth your time to build a large portfolio of all of the variations that come with "for rent" or "for sale." A large percentage of clicks come from these terms coupled with other generic terms.

Generic Terms

Many advertisers overlook general terms such as apartments, real estate, and other very generic words. However, these terms are especially important when you combine them with a targeted area, such as California homes or Boston apartments. This combination helps you reach your targeted audience in the right place. You can specify in your settings that the target is people either in the targeted location, searching for, or viewing information about the targeted location to ensure you don't leave anyone out.

Local Terms

Targeting the correct audience often happens when you use specific location terms. This can take time, but the results are worth it.

2. Know When to Bid

If you are focusing on localized terms for your marketing campaigns, you can adjust the bidding on terms based on peak buying season. For example, in Hawaii the real estate search reaches its peak in January. On the other hand, June is the best month for people looking to buy in Mississippi. Bid on all of the match types to improve your click-through-rate.

Consider placement of the ad to ensure a higher CTR. A recent study showed better results when the ad is on the main search rather than located on the sidebar.

3. Create a Worthy Landing Page

The best ad won't close the deal for you if the landing page is a disappointment. To turn visitors into conversions you need to create an optimal landing page. Here are some features that visitors expect to see:

• Photos- the more, the better as long as they are clear and provide details
• Detailed information about each property that is for sale or rent
• Virtual tours through the homes or apartments
• Maps, especially interactive ones to provide clearer information on location
• Contact information for the real estate agent
• Neighborhood information

These are the most important details to include, but you will also want to add the contract status, as well as information about upcoming houses and recently sold properties.

Ways to Help Your Home Sell Fast

Buyers can look at a dozen or more houses and the one that finally captures their attention is the one they feel a connection with. It's all about emotion – the buyer's, not yours. To help your home stand out and sell faster than the competition, you need to create a space they will fall in love with. Here are some ways you can do that.

Curb Appeal

Begin with sprucing up the inside. Here are some ideas to get you started.

• Clean up first. Cut, trim, weed, and remove clutter.
• Remove extra bushes, trees, flowers, etc. that detract from the landscaping rather than enhancing it.
• Apply fresh mulch to your flower beds to give them a well-maintained look.
• Power-wash your house, the driveway, walkway, and deck or patio.
• Paint the front door.
• Buy a welcome mat and other decorative items for your porch or front entry.
• Placed potted flowers or plants by your front door.
• Clean windows.
• Make sure house numbers are easy to read from the street.

If your house looks dated, consider painting the exterior. While this can be quite a job, it can make the biggest impact.

The Inside Matters, Too

If buyers drive by the house and like the first impression, they will probably want to come inside. As the seller, you have to stop looking at your home as the place you live and begin to see it as a product that you are selling. Here are some tips to help you do that.

• Make sure the lights work, the doorbell works, and nothing squeaks or creaks.
• Pick up clutter and personal items.
• Keep closets clean and organized even if it means packing some of your stuff away. You want to give the impression that you have plenty of storage, not that you have to use every square inch to fit everything in.

Look at Every Room

• Go through every room to see if you have too much furniture or pieces that look old or outdated. Move anything out that makes the room feel awkward or small.
• Clean carpets or have them replaced.
• Clean or refinish wood floors.
• Clean or paint ceilings and walls.
• Paint if you do not have neutral colors on the walls.
• Have blinds and curtains open during the day.
• Leave plenty of lights on if your house is being shown at night. Use larger-watt bulbs to make a room feel brighter and bigger.
• Get rid of pet odors.
• Clean off counters, shelves, and tables to make a room look more spacious.

Update Areas Where Needed

A house that you have been in a long time often has that lived-in look. Buyers want to feel that the place they are buying is brand new. Here are some ways you can make your house feel like new.

• Update hardware.
• Paint kitchen and bathroom cabinets.
• Buy a new shower curtain.
• Replace caulk and clean the grout.
• Don't forget the garage and other "hidden" areas. Nothing is secret during a showing.

If you want to get a feel for how a house should look, visit some other homes for sale during open houses. It may help you see your home in a new light and get it ready to sell fast. If you are ready to start selling your home, give me a call at 517-853-6259 or send an email to rbuffington@tomieraines.com.

 

 

 

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.”