Another Man’s Treasure?

All of us seem to suffer from the same malady when it comes to clutter and junk in our homes. If your home is not for sale, it quite all right to surround yourself with all your “treasures” and enjoy.

If, on the other hand, you have your home listed in this buyers’ market, then it is essential that you do everything necessary to set your home apart from the next dozen or so just up the street. Clutter and junk makes a room feel smaller; detracts from a buyer’s ability to envision themselves in the home. In a buyers market there is NO room for anything that detracts from the objective: TO SELL THE HOUSE.

Get rid of those fifteen year old swimsuit editions of Sports Illustrated; the Playboys left over from college are only a distant memory of good times past, lose last year’s newspapers; get rid of the broken toys from Christmas past; clean out the closets, if it has not been worn in the last year donate the stuff and take a tax credit; look in the cupboards for those old pots and pans that your grandmother gave you when she moved to her condo in Florida; how many containers of salt do you need, how many three quarters empty boxes of old food do you need; and of course, last but not least, the garage. A garage is not a storage bin, it is designed to keep your car out of the elements. Organize it, hang up the tools, take out last year’s trash, sweep the floor, replace the burned out bulbs with new high efficiency devices and, oh by the way, most of us only need one lawn mower.

Bottom line: if it is broken trash it; if you don’t need it sell/donate/trash it; clean the windows, polish the floors, take the Old English to the trim that the kids have chewed on, to say nothing of the dog. When you are finished, your home will feel lighter, smell fresher and the open feeling will again make it feel like a home rather than a collection point for Goodwill.

How do you tell your sellers: Just do it, bad news does not get better with time!

Authored by
Brent H. Nichols
Principle Associate Broker/Owner

Winter White – Think Spring Green

Spring is coming!
And with spring comes a flood of new homes on the market!

If you are a Seller with a home that has been on the market for awhile, springtime will mean new competition for those limited number of Buyers. Now is the time to take advantage of that small window that remains. Talk with your Agent about ways to set your home apart from others currently listed to get your house sold now-before new competition presents new challenges. You may want to consider lowering the price, offering a Seller contribution toward Purchasers’ closing costs on a full price offer closed on or before April 1, or increasing the Broker commission on the Seller’s side. There are many other unique ways to set your listing apart from the competition. Brainstorm with your Agent.

If you are thinking of listing your home soon, don’t wait for the competition…call your Agent of choice, now.

If you are a Buyer, this means that there will be lots more to choose from! Refer to my previous article “There are some basic steps on the road to owning your new home” for preliminary steps you will want to take now to prepare for the purchase of your new home!

Authored by:
Diane Mack, Realtor
View My Listings

Read This – You May Learn Something

More Mortgage Terms You Should Know

Appraised Value – an estimate of property’s worth, usually based on recent sales of comparable properties nearby. Lenders use appraisals to verify a home’s value and to justify a lender’s commitment for that home.

Balloon Mortgages– fixed rate loans for a specified period of time (typically 5,10,15 years), with the balance due at the end of the time period. At that time, you must either refinance or repay the entire outstanding balance in one lump sum.

Fixed-Rate Mortgage – have a stable interest rate and monthly payment. The loan is completely paid off at the end of its term, typically 15 or 30 years.

Loan-to-Value (LTV) – the relationship of the mortgage loan to the value of the home, expressed as a percentage. For example: a $100,000 home with a $75,000 mortgage would have an LTV of 75%. Many lenders limit the maximum LTV, which they are willing to lend on a home.

Authored by:
Diane Mack, Realtor
View My Listings

Winter Blues? Nah.

MYTH: You can’t sell your property in the winter.

We are located in Northern Michigan and thus the weather from October to April is always a factor that must be considered in whatever we do, be it pleasure or business.

For years I have heard sellers bemoan that they intend to take their home off the market in the winter because property does not sell. While this might have been somewhat true in a pre-internet era it certainly is not a factor today.

Over the past few years we have seen our January/February/March sales either exceed or equal any other month of the year. This fact seems to be driven by the extensive use of the Internet by buyers who are “shopping” on line. They can view photos, virtual tours, slide shows, maps, documents etc. In other words, winter shopping for homes is no longer effected by the gloomy weather.

When sellers come at me with the “I’m taking my home off the market for the winter” drill, it is a clear signal to me that I have more educational work to do. This would include educating my sellers on the benefits of the Internet, meaning that today’s buyers shop year around from the comforts of their Lazy-Boys.

In today’s buyer driven market in Michigan (and I suspect in some other parts of the US) we are fighting for every buyer out there. Sellers, therefore, should be helped to understand that getting a buyer to make an offer is tough and if your home is not on the market, well it just won’t sell.

One old adage of yesteryear is true: If you are not in the poker game you cannot win.

Authored by:
Brent Nichols
Principle Associate Broker/Owner

Mortgage Know-How

Mortgage Terms You Should Know
Mortgage definitions are helpful and handy to have. Here are a few terms heard most often.

Adjustable Rate Mortgage (ARM) – a loan with an interest rate that can go up or down. Most ARM’s have their interest rates adjusted at specific intervals of time depending on the mortgage

Annual Cap – the limit on how high the interest rate of an ARM can rise during a single year. Annual caps are specified in all of the better ARM mortgage programs. Don’t sign without one.

Annual Percentage Rate (APR) – the true cost of a loan, expressed as an interest rate including finance charges and fees. The APR is your best way to compare loan programs from various lenders.

Authored by:
Diane Mack
View My Listings

Something’s Fishy

Bait and Switch Pricing

With our slower than normal market, some Sellers feel it necessary to increase the price when buyers start showing an interest in their property. I don’t know if it is to protect their current asking price or what…..my thoughts are: Listing agents should counsel their sellers to “grandfather” the recent inquiries-especially if it is down to collecting data from the listing agent, etc…or at least the listing agent should extend a courtesy call to the agents of those recent inquiries advising them that the seller’s are raising the price.

It is a challenging market, and this practice makes it all the more challenging.

Authored by:
Rick Jackson, Realtor
View My Listings

The 12 Step Process

“There are some basic steps on the road to owning your new home!”

Buying a home is one of the most important financial decisions you’ll ever make. A home can be an excellent investment because most houses increase in value over the years. Home ownership may also bring tax benefits. Here are some of the basic steps you will take on the road to owning your own home:

• Choose a reputable lender
• Get pre-qualified, or even better, get pre-approved for a loan
• Decide what price range of home will provide a mortgage payment you are comfortable with
• Decide on the type of home you want
• Make a list of the features you want in your new home
• Choose a real estate agent that will go beyond your expectations is assisting you in finding your new home—this experience should be an enjoyable one!
• Start house hunting
• When you find a home you want and can afford, your Agent will help you write a realistic offer and negotiate on your behalf
• When your offer is accepted, arrange for an inspection
• Prepare for the closing under the guidance of your Agent
• Arrange for utilities to be transferred to your name for the date of possession.
• Congratulations! You should now hold keys to your new home. Move in and enjoy!

Authored by:
Diane Mack, Realtor
View My Listings

Roll Over Fido – It’s Time to Sell the House

Having spent most of my working career overseas with frequent moves (Georgia, California, North Carolina, Virginia, Panama, Brazil, Vietnam, Korea, Turkey, Bermuda, Kuwait, Saudi Arabia, England etc. etc.) we never had the opportunity as a family to enjoy and have pets. My appreciation of their companionship is, therefore, limited and affords me the opportunity to be somewhat objective regarding their impact on the sale of a home.

My observation is that while most owners of pets seem to be very tolerant of their critters, the last thing they want is to be bothered by the pets of a seller while looking at a prospective new family home. It reminds me of the mantra of the “home stagers” that say there should be nothing related to family in a home for sale, in that it does not allow a buyer to see themselves in the home as new owners.

The same seems to be true when it comes to pets. Buyers immediately notice the smells of another’s pet; they always comment on how badly the home is damaged by the pets; that they would never tolerate the barking dog in the basement or the cat that has stripped the cabinets of their finish; that “their” litter box is never full and the beat goes on. Additionally, if pets are present for showings there is always the real (or perceived) threat that a pet may cause harm to say nothing of being a distraction while looking at a potential home to purchase.

Somehow it is necessary to “lose” the pets during showings. Get rid of the litter boxes and food bowls. Use some Old English on the cabinets and furniture scratches. Install several fresh scent devices to camouflage the smells (I know your pet does not smell). Get the cat and dog hair out of the rugs and off the furniture. Wash the windows where the paw and nose drippings serve as a distraction. Pick up the poop in the yard. In general no buyer wants to see the mess and damage of the pets of a seller. Trust me, seeing the boa, lizard, bird or iguana in the bedroom does not make for warm comfortable images of future romantic nights.

It is easy to blow it off with, “I love my pets and if they can’t get past them then they (the buyer) really is not interested in buying my beautiful home”. Buyers seem to be very focused on purchasing the home: not the pets — regardless of how cute they may be. My feeling is that it is essential to always “lose” the pets and clean their mess before any showing.

From my observation in my few short years in the business – it’s the home that is of interest: not the pets!

Authored by:
Brent Nichols
Principal Associate Broker/Co-Owner

The “State” of Real Estate in Michigan

Regardless of where I look in Michigan it appears that the volume of property currently on the market, and coming to market, far exceeds current demand. News reports trumpet the sorry state of the economy in Michigan; the demise of the American auto industry (at least the so called big three); highly unfavorable tax structure for businesses; loss of industry to other states; and, sadly loss of many skilled and unskilled jobs.

These factors have led to the glut of real property on the market in Michigan and depressed prices throughout the state from levels seen in 2000-2003. Adding to the unsold inventory of vacant property and homes, are the many homes coming to market through foreclosure – one in thirteen homes in Michigan is currently in foreclosure according to the press releases. Have we reached bottom yet in this buyers market? I don’t think so! Many downstate owners of property are being forced to put their property and second homes up for sale due to loss of jobs, further adding to a saturated market.

So is the glass half empty of half full? In my opinion it is a buying opportunity seldom seen in my lifetime. In the Grand Traverse area of Michigan for example we have homes in every category available at dramatically reduced prices and an unsold inventory approaching three years at traditional absorption rates. Want to steal something? Come to NW Michigan and capitalize on this buyers market.

What we are seeing is our buyer base shifting to those with money from other states and European buyers due to the incredible strength of the Euro, now at more than 35% of the dollar. In the St. Pete area of Florida for example more than 30,000 European buyers have bought property in the last three years capitalizing on somewhat depressed property values and a very strong Euro.

For a real estate broker the question seems to be how to attract those buyers with money and the Europeans.

Authored by:
Brent Nichols
Principal Associate Broker/Co-Owner