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.