Real Estate Realities

Mortgage Money Will Be Cheap!

2011-01-10T06:15:00.001-05:00

Interest rates will remain at historic lows and money will be abundantly available to those who can afford to borrow it. The problem is lending requirements have become so strict that fewer borrowers fit today's bank guidelines. To get a loan, a borrower's FICO score needs to be above 620 for FHA and 720 for conventional. Banks order FICO scores from 3 credit reporting agencies and use the middle score. To stimulate the real estate market, the Feds are likely to keep interest rates in check throughout 2011.

STARS ALIGN FOR BUYERS

2011-01-08T18:12:00.003-05:00

Interest rates below 5% & prices bottoming out in the 1ST half of the year will drive 2 of the 3 main ingredients for buyer affordability to cyclic lows next year, Freddie Mac's chief economist said yesterday. "Buyer affordability is at the highest level in decades," said Freddie's Frank Nothaft. "With affordability high, many 1ST-time buyers will be attracted to the housing market in the new year, likely translating into more home sales in 2011 than in 2010." Though they will rise above their present level, he expects rates on 30-year fixed-rate loans to remain below 5% throughout the year. As for home prices, price indexes for the U.S. as a whole are likely close to bottoming out. The National Association of Realtors' Affordability Index for the 1/3 quarter reported one of the most affordable buying markets since the inception of the index in 1971, he noted.

Complete Article

2011 HOUSING TRENDS

2011-01-06T17:51:00.000-05:00

McMansions are out; compact housing is in: The era of the McMansion is over, according to the 2011 edition of "Emerging Trends in Real Estate," co-published by PricewaterhouseCoopers and the Urban Land Institute. Not only are baby boomers downsizing to more manageable homes, but 1st-time buyers are also entering the market with extremely different tastes than their parents. The younger generation of homebuyers, born between 1977 and 1994, are interested in smaller homes in vibrant, compact, walkable neighborhoods. As baby boomers move into smaller homes, who will they sell their large, suburban homes to?

Homebuyers are thinking long-term: In the past, many homeowners thought of their houses as "credit cards" to borrow money against -- a mindset that caused many of the financial problems. While most Americans still think buying a home is a smart financial move, they also realize that a house is more than an investment. Instead, today's buyers are looking for a home, a place to provide shelter and security for a family. As a result, homeowners are planning on stay in their dwellings longer; 1st -time homebuyers want to own their homes for a decade, while repeat buyers want to own theirs for 15 years.

More foreclosures to come: Foreclosure processing was delayed this fall by the "robo-signing scandal" raising concerns that many homeowners may have been unfairly evicted. Though the controversy caused a dip in foreclosures in October, it won't cause a huge drop-off in the number of distressed properties entering the market, says Rick Sharga, senior vice president of RealtyTrac. At the rate the banks are going, it will likely take several more years to work through the millions of delinquent mortgages. But on the bright side, if banks continue to foreclose homes gradually, home prices are likely to stay stable.

Mortgage rates remain low: It's not too late to take advantage of low mortgage rates. While rates are expected to rise slightly in 2011, they will likely remain low, even under 5

Housing recovery contingent on jobs: Above all, a healthy workforce is key to housing recovery. While the unemployment rate remains high, current homeowners will continue to lose their homes to foreclosure, and potential homebuyers will find it difficult to qualify for loans. According to the National Association for Business Economics, unemployment will stay above 9 percent in 2011, which could hold back a housing recovery next year.

HGTV Frontdoor Article

THE HOUSING MARKET IN 2011

2011-01-05T18:03:00.004-05:00

According to Dan Elsea, President of Real Estate One, the largest Real Estate Brokerage in Michigan: The November Michigan Real Estate market was down from the frantic activity of last fall, but up over the market bottom of 2008. Values have stabilized (price per square foot) in the past 6 months & available homes for sale have continued to fall, which are both positive signs towards a more stable market. Overall the number of months inventory (MSI) is still in the Buyer's market range, but at 5.1 months, it is getting close to balanced.

The average days on market (DOM) for homes sold has remained about the same over the past 2 years. The reason seems to be a small segment of the market is well priced & selling quickly while the majority remains priced out of the main stream, taking months or even years to sell. For Sellers, that means they need to be fully aware of the total market and focus on Solds over active listings. Those still on the market after 6 months are priced out of the market & not relevant competition.

So what will next year look like for Michigan real estate? We would expect it to look and feel a lot like 2010, maybe down a bit in number of homes sold, but growing stability in pricing. Also a continued decline in available home inventories, but not falling as fast as 2010 (more bank properties and an improving market will bring out those sitting on the fence). If we simply match 2010, that would be a great success, since it would mean our core economic improvement has made up for the artificial market push this year from the tax credits.

HOUSING SHORTAGE COMING IN 2011?

2011-01-03T17:42:00.006-05:00

The focus of the U.S. real-estate market lately has been the number of foreclosures and people trying to purchase cheap housing. But Brian Wesbury, chief economist at First Trust Advisors, says that if Americans don't start focusing on building new houses, the market will have a much bigger problem on its hands. "We need one and a half million houses per year just to keep up with population growth," Wesbury said in an interview with Steve Forbes. "And then if you throw in, you know, fires and tear-downs and just worn-out properties, we need 1.6 million or more per year. Right now, we're down to about 6 & 1/2, 7 months' inventory whether you look at new homes or existing homes."

By: Alexandra Zendrian of Forbes

Complete Article

North American International Auto Show

2011-01-01T17:05:00.011-05:00

One of the premier international auto shows in the world!

Held at Cobo Center.

Public Show is when all of us get to check out the cars.
January 14

Charity Preview Gala

January 15-23

Public Show
http://www.naias.com/

Public Show

2011 FIRE & ICE FESTIVAL

2010-12-31T15:00:00.005-05:00

Bundle up the family and head to

Downtown Rochester

January 28 (6-9 p.m.)

29th (10 a.m - 9 p.m.)

30th (11 a.m. - 4 p.m.)

Tubing Hill, Ice Skating Rink, Snow Play Area, Dog Sledding,

Tastefest & Beer Tent, Fireworks . . .

Fire and Ice Festival

Plymouth Ice Festival

2010-12-31T10:00:00.002-05:00

January 21-23, 2011

29th Annual "will feature over 100 ice sculptures, live music and entertainment, interactive family shows, winter-themed tasty treats and a variety of additional events to interest all ages. Several new event highlights include the Dueling Chainsaws Speed Carving Show, Forest Avenue Scavenger Hunt, Penniman Ave., Petting Farm & Pony Rides.

TIME TO INVEST IN SOUTHEARN MICHIGAN!

2010-12-27T08:00:00.010-05:00

The Michigan economy is not out of the water just yet, but there are some very encouraging signs indicating that things may be turning the corner.

1. Detroit's Automakers Are All Producing Profits It is no secret that Michigan's economy is heavily tied to the automotive industry. In recent years, the automakers have struggled tremendously, but the restructuring is starting to take hold. In the 2nd quarter of 2010 all three of Detroit's automakers were in the black posting the following profits: Ford - $2.6 Billion - General Motors $1.3 Billion -Chrysler - $183 Million

This is welcomed news for the Michigan job market as these profits have already resulted in renewed investments into Michigan's economy. These investments are expected to create approximately 63,000 jobs.

2. The State of Michigan Has Provided a 42% Tax Credit to Film Makers In April 2008, the state of Michigan announced a 42% tax credit for film makers that produce films using Michigan workers. This has spurred a flurry of film making activity. Before the incentive, Michigan averaged five film productions annually. In 2008 -31 films were produced, and in 2009- 35 films were produced. This trend is expected to continue with the announcement of 3 major studios to be built in Pontiac, Detroit, and Grand Rapids. These studios alone are expected to bring 6500 permanent jobs to Michigan.

3. Investment in Renewable Wind Energy Because of Michigan's vast coastlines along the great lakes, the wind potential is phenomenal. Michigan has enacted the Renewable Portfolio Standard which requires 10% of the state's energy demand to come from renewable resources by 2015. This standard is sure to drive investment into renewable energy resources in Michigan.

2011 REAL ESTATE PREDICTIONS

2010-12-26T14:00:00.000-05:00

Freddie Mac analysts point to five features that they believe will likely characterize the 2011 housing and mortgage markets:

1. Low mortgage rates. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market.

2. Prices have hit bottom. House prices are likely to begin a gradual, but sustained recovery in the second half of 2011.

3. Housing will remain affordable. With affordability high, many first-time buyers will be attracted to the housing market in the New Year, likely translating into more home sales in 2011 than in 2010.

4. Refinances will dwindle. Many eligible borrowers have already refinanced and the federal Making Home Affordable refinance program is expiring on June 30. While fixed-rate loans are likely to remain low, they will move up gradually, making it even less likely that refinances will be attractive to most home owners.

5. Delinquency rates will decline. Based on the last several business cycles, the share of loans that are 90 or more days delinquent or in foreclosure proceedings - known as the "seriously delinquent rate" - generally crests within a year of the start of the recovery in payroll employment, and this economic recovery appears to fit within that pattern. Payrolls began to rise last January, and by the spring the seriously delinquent rate had begun to fall.

Source: Freddie Mac (12/09/2010)

WHAT IS THE "CONSUMER CONFIDENCE INDEX"?

2010-12-15T20:53:00.004-05:00

The Consumer Confidence Index (CCI) is a monthly release from the Conference Board, a non-profit business group that is highly regarded by investors and the Federal Reserve. CCI is a unique indicator, formed from survey results of more than 5,000 households and designed to gauge the relative financial health, spending power and confidence of the average consumer.

There are three separate headline figures: one for how people feel currently (Index of Consumer Sentiment), one for how they feel the general economy is going (Current Economic Conditions), and the third for how they see things in six months' time (Index of Consumer Expectations).

HOMEOWNERS LOWER THEIR DEBT!

2010-12-07T15:47:00.001-05:00

In the 1/3 quarter of 2010, 33 % of homeowners who refinanced their first-lien home mortgage lowered their principal balance by paying-in additional money at the closing table. This is the second highest "cash-in" share since Freddie Mac began keeping records on refinancing patterns in 1985.

MAGIC OF BIRMINGHAM-DECEMBER 2010

2010-12-05T17:58:00.004-05:00

Saturday, December 11 & 18 from

11 am - 5 pm

Enjoy the sights and sounds of Birmingham for the holidays! In addition to shopping, you'll enjoy the Santa House, free carriage rides, gifts for random shoppers, carrolers from local schools and more!

CONSUMER CONFIDENCE AT 6 MONTH HIGH!

2010-12-03T15:39:00.002-05:00

In November, University of Michigan consumer confidence rose back to the highest level since June supported by gains in both economic conditions (79.7 from 76.6) and the economic outlook (62.7 from 61.9). According to the first estimate, Michigan consumer confidence rose from 67.7 to 69.3, slightly above the consensus estimate of 69.0. The one-year inflation outlook rose to 3.0%, the highest level since May 2010. The recent positive economic news might have brightened consumer's sentiment, although labor market conditions remain very fragile.

HAPPY HOLIDAY SEASON 2010!

2010-12-02T09:00:00.006-05:00

The Gift of Love.

The Gift of Peace.

The Gift of Happiness.

May all these gifts be yours during this holiday season and throughout the New Year!

Lani R. Sussman

NOTEWORTHY SOUTHEASTERN MICHIGAN CHARITIES

2010-12-01T20:24:00.000-05:00

Benefits of Charity

2010-11-23T19:50:00.000-05:00

While your primary motivation to donate to charity in time, money, or goods may be because of the deep sense of satisfaction you receive, you should know that great tax benefits exist for those who give. Here are some of the benefits you should know about.

1. A gift to a qualified charitable organization may entitle you to a charitable contribution deduction against your income tax if you itemize

2. A contribution to a qualified charity is deductible in the year in which it is paid.

3. There are limits to how much you can deduct, but they

4. Rules exist for non-cash

SHARING & CARING

2010-11-22T16:55:00.011-05:00

This time of year, many of us are able to sit around an abundant Thanksgiving table counting our blessings, indulge in wonderful holiday gifts or travel to see family and friends. Many are not so fortunate. Included are a few of the noteworthy and deserving organizations in the greater southeastern Michigan area that strive to help out those in need. If you can - give of yourself, your time or money, or lend a helping hand to someone in need.

The Big, Bright Light - December 2010

2010-11-20T19:42:00.012-05:00

DOWNTOWN ROCHESTER

Nov. 29 – Jan. 2, 2011, 6:00 pm – Midnight

The buildings in Downtown Rochester will be covered in more than 1.5 million points of glimmering holiday light which will be lit nightly. Entering its 5th year, the buildings of Main Street will be covered in big, bright lights beginning at the South Bridge, but this year, they will extend all the way north to Romeo Road!

WAYNE COUNTY LIGHTFEST

2010-11-01T21:33:00.002-04:00

With 4 1/2 miles of giant animated displays and nearly a million lights along Hines Drive, it's the Midwest's largest Holiday Light Show. Drive through
7 p.m. to 10 p.m.

Nov 18 - Dec 31, 2010
Wayne Country Lightfest Website

AMERICA'S THANKSGIVING PARADE

2010-11-01T21:25:00.006-04:00

The theme for the 84th America's Thanksgiving Parade® is Celebrate the Spirit. The theme chosen by The Parade Company, allows for everyone to celebrate in their own way. Celebrate time together with friends and family, celebrating the spirit of the holidays, and the spirit of community pride.

One of the country's oldest and most celebrated Parades, will step off at Begins 9:20 a.m. on Woodward Avenue and Mack and end at Woodward Avenue and Congress in downtown Detroit on Thursday, November 25, 2010.

America's Thanksgiving Parade Website

FORECLOSURES IN MICHIGAN

2010-10-22T09:14:00.002-04:00

Michigan is among the hardest hit foreclosure states in the Nation. In August 2010, the state’s foreclosure rate increased 128% over August 2009 and it remains among the top five states in the Nation in foreclosure totals. In July 2010 alone, 1 in 241 housing units in Michigan received a foreclosure filing.

What is a REO?

2010-10-22T09:00:00.001-04:00

Foreclosure is a legal process by which a defaulting borrower is deprived of their interest in the property. Real estate owned (or REO), on the other hand, is a real estate asset owned by the lender that is taken back during the foreclosure process. Foreclosures are legal proceedings not listed homes.

Should You Buy a Foreclosed Property Right Now?

2010-10-15T20:53:00.007-04:00

These houses are tempting for scores of first-time homebuyers, second-home seekers and people looking to get an early jump on buying a retirement home while prices and interest rates are low. So given the pitfalls, are they crazy? The answer is no, not always.

It’s important to keep some things in mind. Think hard about the following 3 factors if you find foreclosed homes even remotely enticing.

THE LOAN: Many banks would prefer to sell to an investor who will pay cash. You may need a mortgage and your need for bank approval can delay the sales process. Lenders will usually only give you a loan on homes that are ready to be lived in. Many foreclosed homes need basic repairs such as installing toilets, sinks, and appliances.

THE INSPECTION: You’ll want to make any bid for a home contingent on a thorough inspection from someone familiar with foreclosed properties. Mold may be a concern given that many foreclosed homes have been uninhabited for months. You should arrange to have the power and water turned back on before the inspection if possible to ensure that pipes are sound and electrical is safe.

THE TITLE INSURANCE: This is a must in the event that a former owner somehow wins back rights to the foreclosed home you end up buying, and then tries to kick you out, you will need to make a title insurance claim.

Take your time. Assemble a panel of experts and watch the listings carefully. For better or for worse, foreclosed properties are going to be available for a very, very long time.

BEFORE YOU JUMP INTO THE HOT FORECLOSURE MARKET - TEST YOUR KNOWLEDGE

2010-10-11T17:21:00.000-04:00

As a general rule, foreclosed homes sell for less than their market value. - False

If you bid on a foreclosed property at an auction, you also may be bidding on tax liens and other debt accrued by the prior home owners. - True
Home owners who always pay their mortgage on time don't need to worry about foreclosed homes in their neighborhood. - False
Home owners can sidestep foreclosure by transferring the title of their home to a foreclosure rescue company for a year or two. - False
Once home owners default on three mortgage payments, the home automatically goes into foreclosure. - False
Owners of foreclosed homes can reclaim their property - even after someone else has already bought it - by paying off the loan along with any interest, taxes, and penalties within the redemption period. - True
Lenders stand to benefit when home owners default on their mortgage. - False
http://www.realtor.org/rmoquiz2.nsf/foreclosurequiz?openform

Once a bank takes possession of a foreclosed home, the previous owner is free of all financial obligations. - False

FORECLOSURE IN THE NEWS

2010-10-09T17:13:00.001-04:00

Reported by crainsdetroit.com, Michigan is not likely to be impacted by the issues raised with national lenders, said David Trott; president of Farmington Hills based Trott

& Trott PC involved with about 2/3rds of all Michigan foreclosure filings. At issue has been a practice by banks to use so-called “robo signing,” putting signatures on some court documents without reading them. In Michigan less than 1% of all foreclosures go through the courts, so affidavits signed without being read will not likely be an issue according to Trott. “Our process is much simpler here, and we typically don’t have affidavits,” Trott said. “I’d be surprised if this is the basis to unwind any foreclosures in Michigan.”

TOP 9 GREEN HOME IMPROVEMENTS

2010-09-22T17:05:00.004-04:00

Take some time to get your home ready for fall now and you won’t be caught unprepared when the temperatures begin to cool. Here are the top 9 GREEN Home improvements based on cost & return on investment according to HomeGain.com
1. Plant native trees & plants
2. Replace air filters
3. Green home staging
4. Weather strip, caulk doors and windows
5. Install programmable thermostats
6. Install low flow shower heads
7. Use auto turn-off power strips
8. Install CFL or LED lights
9. Paint with low VOC paints

FUN IDEAS FOR FALL

2010-09-22T16:54:00.000-04:00

The crisp weather of fall is almost upon us and football season is well underway. While the prospect of relaxing into a lazy Sunday schedule calls to many home owners weary from the routine of weekend lawn mowing, why not prepare some fun activities to enjoy during the upcoming cool weather.

- Get fall and winter sports equipment ready for action.

- Stocking up on crossword puzzles, compelling books and other brain-stimulating items.

- Dust off board games and plan playful activities. Set up a series of game nights to host for friends and family

- Get rid of any unnecessary summertime items and clean your home from top to bottom

- A great time to get your house ready for group gatherings and other social activities.

Make sure you have plenty of open, inviting space in which to host people so your home will accommodate any and all guests!

8 SMART FALL HOME MAINTENANCE TIPS

2010-09-17T12:05:00.001-04:00

Continue to mow your lawn until the first frost. Remove the leaves when your grass has stopped growing.

Falling leaves clog your gutter. Not cleaning your gutters can lead to wet basements.
Clean your outdoor furniture. Refinish it if necessary to prevent rust. If you store it inside, allow for airflow so you avoid moisture damage.
Schedule any indoor painting you need done. The weather is usually ideal for leaving windows open for ventilation.
Check your insulation in your attic, basement and other areas. If you find any dirty spots, it often indicate air leaks into or out of your home. If you find any holes, seal them with caulk.
Exterior lighting is very important. With dark days ahead, check all your bulbs and consider using timers to turn lights on at dusk and off in the morning.
Properly discard or store paint, caulk or adhesives in a heated area to prevent them from freezing. Check with your local hazardous material recycler for instructions on discarding products that could be toxic. Drain all gasoline-powered tools.
Clean and/or repair your chimney. Before you light the first log, get your chimney cleaned and make any necessary repairs.

GET INDOOR SPACES READY FOR FALL

2010-09-15T16:35:00.001-04:00

Maintain your pipes. Wrap your pipes with heating tape every winter. Keep your house warm - at least 65 degrees.
Check your heating systems. Be sure to maintain your furnace, boiler, water heater, and wood-burning stove and have your heating system serviced every year. Change your heating and air conditioning filters regularly.
Know your plumbing. Learn where and how to shut the water off. If your pipes freeze, the quicker the water is shut off, the less chance pipes will bust.

Clean and vacuum dust from vents, baseboard heaters and cold-air returns. Dust build-up in ducts is a major cause of indoor pollutants and can increase incidences of cold weather illnesses.

.

GREEN BUILDING TAKES OFF IN REAL ESTATE SLUMP

2010-09-09T13:08:00.002-04:00

Green building remains the bright spot in an otherwise dull U.S. real estate market as companies and homeowners look to lower utility bills according to an article in the USA TODAY. In fact, green building has increased from 2% in 2005 to nearly one-third now.

The Washington based USGBC (U.S. Green Building Council) LEED (Leadership in Energy & Environmental Design) program is set up like an arbiter of a sort of building Olympics. Projects earn points for various features. Use renewable cork flooring, for instance, get a point in the materials and resources category. Use paint that doesn't give off toxic substances — score a point for indoor environmental quality. There are categories for water efficiency and energy. Pay the fees, rack up enough points, and win a basic, silver, gold or platinum rating. Around 155,000 designers, contractors, consultants and others have studied up online using courses, and then passed the test to earn the designation LEED Accredited Professional — or "green associate." Employ a LEED AP on a project and you get a point for that.

The number of homes receiving LEED approval tripled last year, from 1,151 in 2008 to more than 3,000 in 2009. Homes, like office buildings, get points for water conservation, energy efficiency, durability, location, air quality and other factors.

FALL COLOR TOUR

2010-09-08T09:16:00.000-04:00

Catch the last spectacular show of fall color in East Central and Southeastern Michigan in October. A loop of 150 miles from Bloomfield Hills, to Flint and back down to the Brighton area.
Fall Tour Website

Art & Apples festival - 44th Annual - Rochester, MI

2010-08-24T14:57:00.002-04:00

September 10-12, 2010

Rochester Park

Rochester, Michigan

Presented by Paint Creek Center for the Arts, the Art & Apples Festival is Michigan's second largest juried fine art festival with an average attendance of over 125,000 festival-goers and 250+ artists from across the country. The festival showcases artists from across the country, local and national entertainment acts, a free Kids Art Zone, Activity Zone, 3 food courts and more. http://www.artandapples.com/artandapples.php

ARTS, BEATS & EATS

2010-08-24T14:47:00.006-04:00

Oakland County’s Summer Festival

September 3-6, 2010

200 Performances on 10 Stages!

Oakland County’s Favorite Summer Festival Celebrating Art, Music, Cuisine and Humanity returns September 3-6, 2010. Now in its 13th year Ford Arts, Beats & Eats Presented by Citizens Bank will take place in Downtown Royal Oak, a great place to live, for the very first time. The festival will offer more than 200 performances on ten stages, a highly ranked Juried Fine Arts Show, local restaurants with some of the finest cuisine in metro Detroit and international, regional and local attractions that will make the city of Royal Oak the premier destination for Labor Day weekend 2010.

http://www.artsbeatseats.com/

Event Hours
Friday September 3rd 11:00am - 11:00pm
Saturday September 4th 11:00am - 11:00pm
Sunday September 5th 11:00am - 11:00pm
Monday September 6th 11:00am - 9:00pm

WHERE TO FIND A QUALITY HOME INSPECTOR

2010-08-23T13:58:00.003-04:00

1) Ask for referrals: Try to gather two or three referrals.

2) Interview the home inspectors: Find out about their education, years of experience, number of inspections they’ve performed and insurance coverage. Also, do they participate in continuing education or stay up-to-date on current laws and building codes?

3) Determine the inspection cost: Ask how much they would charge and what areas of the house it includes.

4) Make sure you are welcome at the inspection:. This is a unique opportunity to see your new home through the eyes of an expert.

5) Get the home inspection report in writing: Ensure that he or she will provide you with a comprehensive report.

INSPECTIONS: how Much Do They Cost?

2010-08-23T10:00:00.001-04:00

A professional home inspector evaluates the current condition of a house. It is NOT an appraisal, which estimates the market value of a property.

Many inspectors offer a home inspection for a flat rate based on the square footage, age of home and number of rooms. The price should include a written report, often with accompanying photos of problem areas. The average home inspection should take 2-4 hours and will cost between $250 and $500, depending upon the size of the home. Home inspections do not cover everything. In some circumstances additional inspections may be needed for swimming pools, septic systems, pest report and/or mold inspection.

HOW CAN A PRE-SALE INSPECTION BENEFIT A SELLER??

2010-08-22T11:04:00.011-04:00

Easier and more realistic pricing. A professional home inspection helps with pricing in two important ways.
1. It allows you to see your home through the eyes of a critical third-party and increases objectivity. It helps you to price your home realistically.
2. The inspection report reflects the current condition of the property – good, bad, or ugly. A seller can take that true condition into consideration and set the price lower accordingly.
Enhanced marketing impact. Prospective buyers are likely to find a pre-inspected home more attractive because the “what if” factor is not as great.
Greater negotiating leverage. Sellers discover any issues that might delay or derail the transaction and can make advance repairs, thus heading off potential price concessions sought by buyers. Even if repairs are not made, disclosing any defects upfront and pointing out that the price is adjusted accordingly can deflate buyer’s objections. You have the time to get reasonably priced contractors or make the repairs yourself, if qualified.
On going safety ensured. It may alert you of items of immediate personal concern, such as radon gas or active termite infestation. Alerting you to immediate safety issues before agents and visitors tour your home.
A professional home inspection helps with pricing in two important ways.
1. It allows you to see your home through the eyes of a critical third-party and increases objectivity. It helps you to price your home realistically.
2. The inspection report reflects the current condition of the property – good, bad, or ugly. A seller can take that true condition into consideration and set the price lower accordingly.
Enhanced marketing impact.
Prospective buyers are likely to find a pre-inspected home more attractive because the "what if" factor is not as great.
Greater negotiating leverage.
Sellers discover any issues that might delay or derail the transaction and can make advance repairs, thus heading off potential price concessions sought by buyers. Even if repairs are not made, disclosing any defects upfront and pointing out that the price is adjusted accordingly can deflate buyer’s objections. You have the time to get reasonably priced contractors or make the repairs yourself, if qualified.
On going safety ensured. It may alert you of items of immediate personal concern, such as radon gas or active termite infestation. Alerting you to immediate safety issues before agents and visitors tour your home.

SELLER INSPECTIONS

2010-08-21T10:59:00.007-04:00

A Great Tool for Competing Against Foreclosure Listings!

They Aren’t Usually the Bargain Buyers Expect: Banks will price a foreclosure near appraised value unless there are MAJOR defects. There is almost always a significant investment needed to bring the condition to a "move-in ready" state. Sellers can make their properties more enticing by having them problem free.
It Can Take a Long Time to Close on a Foreclosure: Banks will rarely respond quickly to get these poorly performing assets off their books. It can takes weeks to respond to offers & counteroffers. Prepared sellers will fare well in competition because buyers can close and move in on a realistic schedule.
Disclosure of Defects is Non-existent With Foreclosures: Banks will disclose nothing about the condition of the foreclosure home. Its "buyer beware" even with a home inspection. Some lenders will want some or all of the problems discovered during an inspection corrected before closing. The smart seller will have done their own pre-listing inspection and corrective action repairs.

BRIGHTER OUTLOOK FOR REAL ESTATE WITH JOBS COMING TO MICHIGAN

2010-08-20T13:48:00.001-04:00

There are signs of positive growth for the Southeastern Michigan job market. With companies adding jobs, consumer confidence is also on the upswing and more people are looking to buy or lease in the area.

A recent Free Press article claims "Jobs are trickling back into southeastern Michigan as technology and government-related fields grow. That's great news for local relocation experts, who say they are working with a diverse client base to help employees coming to Michigan find housing. Some are leasing and some are buying.

The companies with employees coming to metro Detroit include GE, General Dynamics Land Systems and Harman International, maker of high-end audio systems. Warren is to gain 1,200 positions from transfers at the Rock Island Arsenal in Illinois, and more jobs are likely in coming years at the Warren Tank-Automotive and Armaments Command."

BY GRETA GUEST

FREE PRESS BUSINESS WRITER
Free Press Article

Tony Robbins Offers Tip on How to Weather the Economic Storm

2010-08-15T19:13:00.005-04:00

Tony Robbins, who has worked as a personal adviser to some of the world's top financial leaders, encourages people to be smart about the financial decisions they make in the coming months and years. "This is a season called winter and it doesn't last forever. Winter's followed by spring. There will be another great set of opportunities," says Robbins. "It'll probably take longer than we want, but if you're smart and don't let things stop you, you can see where these opportunities are."
The Huffinton Post has included his video on this subject and is truely work watching: Tony Robbins Video http://www.huffingtonpost.com/2010/08/11/how-to-weather-the-econom_n_677769.html

MICHIGAN'S ECONOMY CONTINUES TO GROW-SLOWLY

2010-08-06T09:19:00.002-04:00

In an article from Crain's Detroit Business, Shawn Wright discusses some postive news for Southeast Michigan's economy. At its lowest point in January, the PMI (Purchasing Managers Index) showed a 45.2. Over the last six months, the index has indicated a consistently expanding economy to July's level of 56.7. As we see sustained growth in the economy, purchasing managers should become more comfortable with hiring once again. And, as people feel more confident in their job security, the economy, and housing prices, we should see some leveling off of the real estate market.

For Shawn's complete article, click here

MICHIGAN APPLIANCE REBATE PROGRAM EXPANDED!

2010-08-02T09:12:00.004-04:00

According to a recent story by reporter John Lund of WILX-TV, Michigan will now add furnances & hot water heaters to the list of appliances available for rebates from the State of Michigan. It is another effort to stimulate the economy & help homeowners upgrade their inefficient appliances to more energy saving versions.

Rebate Website

Starting Aug. 1, the Michigan Department of Energy, Labor and Economic Growth will offer rebates on hot-water heaters and furnaces. But those products are just the new addition to the Michigan Energy Efficient Appliance Rebate Program.
"Most of our rebates- we've given out 62,000 rebates, and most of them have been for refrigerators, clothes washers and dish washers," said Department of Energy's manager of technical assistance, John Sarver.
The program, part of the Federal Economic Recovery Program, has been around since February. It is like last year's Cash for Clunkers in the automobile industry. Except, this time, it's major appliances.
"This is most likely a one-shot deal, from the federal government," Sarver said. "These are federal dollars administered by the state to save energy, but also stimulate the economy."
The Michigan Trade Up program is similar to others around the country. But analysts say that Michigan is giving out more rebates than any other state.
"If we stay on the schedule, we should give out about 115 to 120,000 in rebates and that's about 13 times the amount of rebates other states will give out by the end of our program," said Stephanie Epps, appliance analyst for the Department of Energy.
Available at retailers wherever appliances are sold, the new eligible appliances are rated "energy star" or better, and are strictly for residential usage. Over $2 million is available for the furnace and hot water trade-ins, while $6.6 million is available for fridges and washers.
"Quite a bit of money available, but we're thinking that with the addition of the natural gas furnaces and hot water heaters, that the money will go fairly quickly," Sarver said.
Sarver estimates that the programs funds will be depleted by November.
FULL STORY

Lani's July 2010 Real Estate Update

2010-07-30T14:29:00.010-04:00

Optimism – “a disposition or tendency to look on the more favorable side of events or conditions and to expect the most favorable outcome" As the economy recovers, so does the real estate market, buyer optimism and our biggest investment – our homes. This month’s News You Can Use! newsletter contains articles about a glass half full! To view the newsletter, click on: http://www.lanisussman.com/

To Subscribe to Lani's Monthly Newsletter: respond to lani@maxbroock.com

Our Current Real Estate Market

2010-07-28T16:40:00.001-04:00

Sales of Houses in Birmingham, Bloomfield Hills,

Franklin, & W. Bloomfield

JULY 2010 -- 110 Houses Sold - 29% Were Forclosures/Short Sales
Lowest: 2250 Island View - List $35,00 -- Sold $35,250
Highest: 1016 Lake Park - List - $2,748,000 --Sold-$2,450,000
JULY 2009 -- 121 Houses Sold - 54% Were Forclosures/Short Sales
Lowest: 6725 Cooley Lake - List $43,500 -- Sold $34,000
Highest: 360 Woodbridge - List - $2,999,000 --Sold-$2,350,000

THE 2% RULE

2010-07-27T16:45:00.000-04:00

The "2% Rule" states that you should never refinance your mortgage unless your new mortgage rate is at least 2% lower than your existing home loan’s rate. That no longer applies. Deciding to refinance a mortgage should be done on a cost/savings basis.
Evaluating your refinancing options tells you how long it will take to recoup your expenses and makes it easier to recognize and avoid junk fees. How do figure out how long it will take to recoup your expenses when refinancing?
1. Figure out what your new monthly payment will be using a basic home mortgage refinance calculator.
2. Subtract your new lower payment from your old payment and you’ve got your monthly savings .
3. Total up all of your closing costs including any loan origination fees you’re paying the person arranging your new mortgage.
4. Divide this total by your savings and you’ve got the number of months it will take you to recoup your expenses from taking out a new mortgage loan.

HIGHER END HOMES BRING MULTIPLE OFFERS

2010-07-26T15:44:00.000-04:00

Metro Detroit buyers in the $500,000 plus market are finding in hard to buy "move-in" ready homes. Houses in good condition often bring multiple offers. If they are persistant, they can find a house with all the "extras", but in many cased these houses need some work. The inventory includes many foreclosed and short sales house where the fixtures have been stripped or the condition of the house requires some work. For a great article on this subject, visit "Good deals are at the high end, but finding them takes some work"

What You Should Know Before You Refinance Your Mortgage

2010-07-20T15:58:00.002-04:00

It all depends on three factors on a sliding scale:
1. How much you can reduce your interest rate.
2. How much you’ll pay in closing costs.
3. How long you plan to live in the home.
The real key is the break-even point. That’s the number of months you should plan to keep the home after refinancing in order to recover your closing costs. For example, if you pay $3,000 in closing costs and you manage to lower your mortgage payments by $150 a month, you would reach the break-even point in 20 months. As long as you plan to live in the home longer than that, refinancing could be worthwhile. It’s a sliding scale. The smaller your savings, the longer you need to stay put.
There are a couple strategies to tweak the sliding scale by minimizing the price of closing costs when you refinance.
1. Ask your current lender to refinance you. In order to keep your business, your lender may be willing to waive certain closing costs.
2. Ask for the "reissue rate" on your title insurance, a savings of 40 to 50 percent.
3. Ask for an automated or drive-by appraisal, which is cheaper than a full-fledged one.
4. Get your lender to skip the credit check. After all, the company is intimately familiar with your payment record.

REFINANCING - How to Make It Work

2010-07-19T16:29:00.003-04:00

If you have decided that refinancing makes sense for you, follow these tips to make sure you do it wisely:
1. Shop around for interest rates. The Internet is a good place to comparison shop, but be wary of unknown companies.
2. Hold the line on closing costs. Some lenders are taking advantage of low interest rates to jack up their closing costs.

3. Start with the bank that currently holds your mortgage. They may give you a good deal just to keep your business.
4. Avoid paying points. When you refinance, you can deduct only a portion of the points each year.
5. Don’t try to outsmart the market and wait for interest rates to hit their low point. If the numbers make sense, jump in!

ZERO COST REFINANCING

2010-07-16T16:33:00.001-04:00

Don’t have the ready cash to close on a refinanced loan? Ask the lender to absorb your closing costs by raising your interest rate by an eighth or quarter percentage.
Benefits are:

1. No upfront costs.

2. Immediately cut interest rate & monthly payment with no out-of-pocket expense.
Drawback:
You don’t get lowest possible interest rate.

JULY EVENTS ON THE WATER

2010-07-01T10:25:00.004-04:00

Over the past 10 years, “Quake on the Lake” has gained a reputation as one of the premier summertime events in/around Oakland County, Michigan.
The “Quake” has become a “must attend” event for North American Inboard Hydroplane owners and drivers; and since its inception, nearly 350,000 people have witnessed world-record racing performances from the top teams in the business. The event is the proud recipient of 17 American Power Boat Association (APBA) world speed records being set in 5 different racing classes making Pontiac Lake one of the fastest one-mile race courses in the country!

New for 2010 the “Quake” will feature an awesome carnival complete with midway and over 15 amusement rides such as the Enterprise, Space Loop, Spin Out and Mulligan Wheel as well as national musical recording artists headlining the stage on Friday and Saturday evening

The 16th annual Meijer St. Clair Riverfest will be a three-day extravaganza held Friday, July 23- Sunday, July 25, 2010. Located on the banks of the St. Clair River in beautiful downtown St. Clair, MI. http://www.quakeonthelake.org/

Meijer St. Clair Riverfest

started in July of 2006 in conjunction with the St. Clair River Classic formed over 15 years ago by the Blue Water Offshore Racing Association. This event combines the power of Offshore Racing with National Recording artists performing on two of the three nights culminating with spectacular Offshore racing on the St. Clair River. The Riverfest has grown into the largest event in St. Clair County with it drawing well over 100,000 visitors annually since it began. http://www.stclairriverfest.com/

FARMINGTON FOUNDERS FESTIVAL

2010-07-01T10:08:00.001-04:00

Founders Festival!
July 15, 16, & 17

Downtown Farmington invites you to Go Play in the Streets for a weekend of music, food, and fun activities geared for all ages. Go stroll through the Crafters Marketplace and Farmers and Artisans Market. Visit the Main Stage for great music and catch a Movie Under the Stars. Cheer on a parade, make crafts with the kids and run around the Go PlayGround. There's lots to see and do.

HAPPY 4TH OF JULY!!

2010-06-30T10:10:00.000-04:00

A GREAT RESOURCE FOR A FIREWORKS

CELEBRATION LOCATION NEAR YOU:

2010 Michigan Fireworks Schedule

STAY COOL THIS SUMMER & REDUCE YOUR ENERGY BILL

2010-06-28T10:20:00.001-04:00

1. Invest in Ceiling Fans: Ceiling fans help cool you down because they move the air. When moving air meets moisture (like the sweat on your skin) it has a cooling affect that can make you feel 8 to 10 degrees cooler.
2. Use Outdoor Misters: Have a cooling affect that can make you feel 8 to 10 degrees cooler. A mister sends a fine spray of water into the air which slowly evaporates by absorbing energy from the air. The net result is a cooler air temperature in the immediate vicinity of the mister.
3. Give Your Air Conditioner a Check-up. The contractor will clean the coils, make sure you have enough refrigerant, and generally see to it that the system works as well as possible. You should also replace or clean the unit's filters as often as required.
4. Energy Efficient Light Bulbs –Fluorescent light bulbs not only use less energy, & last up to 5 years longer, they don’t emit as much heat as regular incandescent bulbs. In fact incandescent bulbs waste 90% of their energy on the heat rather than on lighting!

BRAVE NEW REAL ESTATE WORLD!!!

2010-06-22T10:00:00.000-04:00

The housing market has emerged in a brave new world on the bust side of the boom. Distressed properties litter the market. Tighter underwriting rules apply. Regulations are stronger. Cash talks. Fast appreciation isn't guaranteed. But buying is still possible if you understand what's changed.

You need money on the table. Don't leverage yourself to the hilt. The larger the down payment, the better. A sizable down payment gives you an immediate equity stake in your home and a better shot at landing a loan for less.

Credit is tight. In the past, almost everyone was able to get a loan. Today you'll need a credit score in the high 700s, prove your income, assets and demonstrate you can make mortgage payments.

Home ownership isn't a right It's a responsibility. Today's housing market is littered with homes purchased by buyers who moved to fast and later discovered they could not afford interest rate resets or the mortgage once the economy tumbled and layoffs reduced or erased income.

Smaller is better. The era of energy- and money-gobbling McMansions is over. Smaller homes are less expensive to own, to operate, to maintain and easier to sell. Using less energy, they are also greener. Who needs all that space anyway?

Fast appreciation isn't guaranteed. Buying a home can be a good deal with prices down as much as 50%. Buy because you can afford a home. Don't buy because you expect appreciation to make you rich.
By: by Broderick Perkins of Realty Times - June 10 ,2010 Complete Article

THE RECOVERY ACT & MICHIGAN

2010-06-20T09:39:00.001-04:00

Here is what a recent government report has to say about what the Recovery Act has done for Michigan.

$1.35 billion to develop and build advanced batteries

$243 million to weatherize 40,000 homes

$650 million in SBA loans to small businesses, tax credits leveraging

$750 million in private investment for clean energy manufacturing:

The Recovery Act is changing Michigan's economic landscape. In the 18 months since the Recovery Act became law, Michigan has used these federal funds to create or retain more than 54,000 jobs. Thanks to the Recovery Act, people are building roads, improving water systems, educating our children and making our homes and public buildings more energy efficient.

http://www.michigan.gov/recovery

MICHIGAN AT THE HALFWAY MARK ON PATH TO REVIVAL

2010-06-15T09:29:00.001-04:00

Tom Walsh of the Free Press offers this perspective on Michigan’s recovery.

Halfway to revival, halfway to cheating death, to dodging a label as America's first third-world state. The glass is half full.

While challenges certainly do remain, the good news is that we have cleared two big hurdles on the four-step path to economic self-realization:•

We know now that Big Companies can't support everyone in perpetuity. We've seen that at General Motors, Delphi, Visteon, DaimlerChrysler. Remember Comerica, Burroughs, Unisys, National Bank of Detroit?•

We know Big Labor can't protect everyone either. Just look at the shrunken payrolls of GM, Ford and Chrysler; the reduced wages at American Axle; the extinction of the Electrolux appliance plant in Greenville.

Now we're at Step 3 on the path to self-realization, dealing with the belief that Big Government can ride to the rescue. Government can and should provide aid in emergencies, it must not become a crutch used to prop up an otherwise uncompetitive economy. That's where we are in Michigan now, wrestling with how to wean ourselves off reliance on government largess. We're still plugging the state budget with federal stimulus money. Detroit relies on federal cash to knock down blighted housing.

The last hurdleIf the state can survive that struggle, all that remains will be Step 4 in self-realization: The only ones who can save us are Ourselves.

Complete Article

SHOULD YOU MOVE UP?

2010-06-13T09:53:00.000-04:00

There is an endless supply of reasons why a family may need to move up to a bigger, or nicer, home. How do you know, though, that now is a good time to move up?
Housing Prices. The price of homes makes it the best time to purchase in 40 years.

Interest Rates. There is a huge difference between buying a home at 5 percent interest (June 2010), and buying one at 13 % interest (February 1983). The available rates can change from week to week, and how you qualify depends largely on your credit rating.

Income. Moving up to a bigger or nicer house will may mean a bigger mortgage payment. Take an honest look at your budget to see if this makes sense for your family.

Equity. This is one way to avoid a bigger mortgage payment. Make a large down payment.Wish list. Take a moment to consider what area of town would be best for your family. Think about schools, commute times, neighborhood amenities and affordability.

FATHERS DAY - JUNE 20TH 2010

2010-06-01T11:45:00.001-04:00

REMEMBER TO HONOR YOUR FATHER

Sunday, June 20th

"My father taught me to work; he did not teach me to love it."

Abraham Lincoln

Detroit River Days

2010-06-01T10:39:00.004-04:00

Presented by the Detroit RiverFront Conservancy, the 4th Annual River Days takes place along the Detroit Riverfront - from the Renaissance Center to the new Milliken State Park. The festival kicks off on June 18 & ends on June 21 with the Target Fireworks. A celebration of Detroit's river, history & culture with activities on land and water, including tall ships, live music, sand sculptures, river tours, carnival rides, jet-ski demos, kids activities, delicious eats & much more!

In the Park Summer Concerts-Birmingham MI

2010-05-31T10:54:00.000-04:00

Birmingham - In The Park Summer ConcertsCelebrating 30 Years!
June 18 - Aug 11
Spanning a diverse range of music from contemporary pop to bluegrass to jazz. Please note: the concerts will be held at Booth Park due to construction on Shain Park

4 Remodeling Myths

2010-05-28T11:18:00.001-04:00

Myth #1: Any remodel is a good one.

Some people think that any improvement is a good one, but not all home improvements are created equal. For example, a homeowner had a concert hall of his very own in his ranch-style home. Unless the next homeowner is an opera singer, they may not want a balcony in the house. Keep in mind that you might want to sell the place one day.Myth

#2: I can do it myself.

You may be convinced that you can do it just as well as a contractor, but news flash! You can't. You may just have an unrealistic idea of your "knack" for remodeling. Doing it yourself can sometimes save money, but you need to know your limits. Don't be afraid , ask for help.

Myth #3: Pools add value.

A lot of people think that adding a swimming pool and/or a hot tub is a sure seller. That's not always true. Location is extremely important. If every day is summer in your climate and it's a pool-friendly region, that's one thing, but if you live in a cooler climate, it could be different story. In most areas of the country, adding a pool is a scary proposition. It's a big liability and can be a lot of work to maintain in the off-season.

Myth #4: Follow the latest design trends.

Many homeowners think it's a good idea to follow the latest design trends. Not true. For instance, peach textured wallpaper went out in the '80s. Features like that must go before a house goes on the market. Neutral colors or palettes have more of a timeless feel and will appeal to far more people. brighten, consumers are about to face a new financial burden: a sustained period of rising interest rates.
For the complete article, visit: HGTV.com

INEXPENSIVE CURB APPEAL UPGRADES

2010-05-27T11:08:00.001-04:00

Walk across the street from your house, turn around, take a good look at your yard and ask yourself if you're impressed by what you see. You can get a bang for your buck on a limited budget . . .

For $100, you can ...

Create a welcoming entrance with 1 or 2 big pots filled with colorful plants. Buy seeds & cover much more ground than $100 worth of plants.

For $500, you can ...

Invest in a couple of great architectural pots & make a statement at your entrance.
Spruce up your foundation plantings with a border of long-blooming perennials.

For $1,000, you can ...

Redo an area of your garden or even a small backyard, Add several evergreen plants, both trees and shrubs, to punctuate an entrance.Install landscape lighting to illuminate the path to your front door.
Buy a small, freestanding water feature,& add rocks, boulders and plantings to make it look natural.
Complete Article by By Cameron Huddleston of Kiplinger

Consumers Want Innovative Quality with Real Benefits

2010-05-22T01:15:00.000-04:00

New research from TOTO USA, Inc., a manufacturer of high-quality plumbing products, showing that one of the most prevalent trends with consumers today is a strong desire for innovative products, but only if they have real-world benefits, like saving water and money, reliability, or better performance.

TOTO's own study confirmed that quality and reliability are primary drivers in consumer purchasing choices, perhaps more so now that the recession has tightened pocket books and wallets. The top five answers to a consumer insight question back this up:

1. I typically do my research to know which products are the best (79%)

2. I'm willing to pay more for superior quality and value because I know it's a good investment (77%)

3. I typically buy the best products I can afford (76%)

4. I am willing to pay more today for the best quality products, because I know they will save me money in the long run (76%)

5. I like to deal with companies who do the right thing (71%).

The research also noted that saving money and water are 2 examples of tangible benefits that any consumer, in any household income bracket, will appreciate in the new economy. That bodes well as most homeowners long to bring the indulgences they experience in hotels and spas into their own homes.

For the Complete Article, click here

LANDSCAPE "WOW" FACTOR

2010-05-21T11:24:00.000-04:00

Container plants are an easy way to give immediate visual impact to your home, creating that important curb. Here are some important tips to make sure you use containers effectively.

#1 Use big containers

Don't be afraid of using big, bold containers. They will have much more impact and will be easier to care for because they won't dry out so easily.

#2 Use quality containers

Avoid plastic containers, as these can look cheap. Terracotta, wrought iron, or zinc containers look great. Choose a container that complements your house and the rest of your landscaping. For example, if you have iron detailing, finda matching container; if you have brick paving, a terracotta pot might look good next to it.

#3 Fill them with plants

For immediate results, fill your containers with more plants than you normally would. Otherwise, you will be forced to wait for the plants to grow before your container will look lush and healthy.

#4 Feed your plants

Make sure you keep your containers well maintained by watering and feeding the plants regularly. You want buyers to think the containers are always there, not just a quick fix.

GOOD NEWS for Southeastern Michigan Real Estate!!!

2010-05-20T11:40:00.001-04:00

Housing starts continue to climb in Southeast Michigan compared with last year, according to the latest data released by Housing Consultants Inc. today. From January through April, the nine-county region saw a 119 percent increase in construction permits for new housing from the same four-month period last year. Some of the most pronounced increases occurred in Metro Detroit's three largest counties. Oakland County experienced a 152.8 percent jump to 182 permits from 72!
Article by:Louis Aguilar - Detroit News

CAN YOU STILL GET A 5% MORTGAGE?

2010-04-28T10:15:00.002-04:00

Here's What aRecent CNNMoney.com Article
Had to Say . . .

Since November 2008 the Federal Reserve has snapped up $1.25 trillion worth of mortgage-backed securities -- essentially, people's mortgages bundled together and sold to investors. When the Fed stops buying and cedes the playing field to private investors, they will almost surely demand better return for their risk. The Fed said it will taper off [purchases] gradually. Each week they buy less than the week before.
So far, though, the tapering has failed to spawn higher rates. Still, all of the experts agree that mortgage rates will climb. The good news is that none of them think the increase will be very large. Their projections are for a gradual run up to between 5.5% and 6% by December. That will add only about $70 to the monthly payment on a $150,000 note. That's still very reasonable and should not discourage many consumers.
Homebuyers may even find themselves paying less every month as housing markets continue to experience price declines. Industry experts are projecting further home price drops of 5% to 10%. Which would wipe out every bit, and more, of the monthly payment increases higher mortgage rates would bring.
CNN Money Article

Remodeling Costs Affected by New EPA Rule

2010-04-28T10:02:00.004-04:00

Started on April 22, 2010, a new regulation went into effect, the Renovation, Remodeling and Painting Ruleor RRP Rule. The RRP Rule requires that all persons who provide construction trade services will be mandated to have successfully completed a professional 1-day training course and be licensed or certified by either the EPA or by the state where the work is occurring.
This rule will apply in any situation where the construction trade service is impacting an area in a home built before 1978 equal to or larger than 6 square feet of interior or an area equal to or greater than 20 square feet of exterior area that is affected by any material, paint, or surface coating containing lead.
Construction trades refers to renovators, remodelers, HVAC persons, plumbers, electricians, modernizers, roofers, carpet installers, maintenance repair people, or anyone working in a construction type trade.Everyone involved will need to be trained in the proper uses of lead safe work practices as well as the proper documentation. The trades will have to use the following rules:
1. Contain the work area. The area should be contained so that dust and debris do not escape from that area. Warning signs should be put up and heavy-duty plastic and tape should be used.
2. Minimize dust. There is no way to eliminate dust, but some methods make less dust than others. For example, using water to mist areas before sanding or scraping; scoring paint before separating components; and prying and pulling apart components instead of breaking them are techniques that generate less dust than alternatives.
3. Clean up thoroughly. The work area should be cleaned up daily to keep it as clean as possible. When all the work is done, the area should be cleaned up using special cleaning methods before taking down any plastic that isolates the work area from the rest of the home. The special cleaning methods should include: Using a HEPA vacuum (not just vacuum bag) to clean up dust and debris on all surfaces, followed by wet mopping with plenty of rinse water when the final cleaning is done, look around.
All this extra work costs money. You should probably expect to see additional cost for any home improvement you contract for, from new carpeting to a room addition. For more information on what "lead safe work practices" entails, see: EPA Lead & Rennovation.

DETROIT'S DOWNTOWN HOEDOWN

2010-04-28T09:45:00.002-04:00

The Downtown Hoedown was established in 1983 and is widely recognized as the largest Country Music Festival of its kind in the world. Hosted by 99.5 WYCD, Detroit's Best Country, and produced by Wasserman Media Group, the Hoedown is regarded by the Country Music Industry as a premier showcase opportunity for new and established artists. Located at Hart Plaza in the heart of downtown Detroit, the event attracts hundreds of thousands of enthusiastic country music fans from the Midwest and beyond.

May 14 - 16 in the Hart Plaza

May 15-16 - Art Birmingham

2010-04-28T09:30:00.002-04:00

Art Birmingham, originally known as the Birmingham Fine Art Festival, celebrates its 29th anniversary with a new and extraordinary location. The event moves from Shain Park to South Old Woodward, the celebrated gateway to downtown Birmingham. Unique shopping and fabulous restaurants line the street, drawing upscale shoppers and residents from throughout Oakland County and beyond. More than 160 juried artists will be featured in this elegant setting.
The BBAC is pleased to announce that it will be presenting this event in association with The Guild of Artists & Artisans. This new collaboration will help the BBAC continue to be a regional resource for the arts, artists and art education while ensuring the continuation of this highly respected fine art fair. The Guild of Artists & Artisans is a non‐profit, membership association of independent artists best known for its award‐winning Ann Arbor Summer Art Fair. Guild events have a reputation for excellent advertising, fair attendance and artist amenities.

Saturday, May 15th 10 a.m. - 6 p.m.Sunday, May 16th 11 a.m. - 5 p.m.

Location: Old Woodward in Birmingham

For more information contact the Birmingham Bloomfield Art Center at (248) 644-0866

St. Mary's Polish Country Fair

2010-04-27T15:00:00.000-04:00

In Orchard Lake May 28-31, 2010 (fri-mon):
Free Admission - Parking $7
More than 45 Carnival Rides, Kid Zone, Authentic Polish and All-American Food, Las Vegas and Bingo Tents, Live Music and Dancing, more.
More information: St Mary's Festival

INTEREST RATES HAVE NOWHERE TO GO BUT UP!

2010-04-26T14:00:00.000-04:00

Even as prospects for the American economy brighten, consumers are about to face a new financial burden: a sustained period of rising interest rates.

This fact, economists say, is the inevitable outcome of the nation's ballooning debt and the renewed prospect of more inflation as the economy recovers from the depths of the recent recession.

The shift is sure to come as a shock to consumers whose spending habits were shaped by a historic 30-year decline in the cost of borrowing.
The impact of higher rates is likely to be felt first in the housing market, which has only recently begun to rebound from a deep slump. The rate for a 30-year fixed rate mortgage has risen half a point since December, hitting 5.31 in April, the highest level since last summer. Along with the sell-off in bonds, the Federal Reserve has halted its emergency $1.25 trillion program to buy mortgage debt, placing even more upward pressure on rates.

The Mortgage Bankers Association expects the rise to continue, with the 30-year mortgage rate going to 5.5 percent by late summer and as high as 6 % by the end of the year.

For young home buyers today considering 30-year mortgages with a rate of just over 5 %, it might be hard to conceive of a time like October 1981, when mortgage rates reached a peak at 18.2 %t. Therefore, this meant monthly payments of $1,523 then compared with $556 now for a $100,000 loan.

No one expects rates to return to anything resembling 1981 levels. Still, for much of Wall Street, the question is not whether rates will go up, but rather by how much. For the complete article see: Complete NY Times Article

2010-04-23T14:56:00.001-04:00

Interesting info about our unique neighborhoods in Birmingham and Bloomfield Mi.

Royal Oak Farmer's Market

2010-04-20T11:00:00.001-04:00

The Market is located in the Civic Center at the corner of 11 Mile Road and Troy Street, across from the Library and adjacent to the 44th District Court. The Royal Oak Farmers Market provides one of the premium farm market venues in southeast Michigan. Farm producers sell from an enclosed building, with ample parking, on Friday during the farm season (May through Christmas) and Saturday all year 'round. During growing season farmers are only allowed to sell what they grow.

Birmingham Farmer's Market

2010-04-20T11:00:00.000-04:00

WILL OPEN MAY 2nd!

Every Sunday
May 2 - October 24
9 a.m. - 2 p.m. at the Birmingham Farmers Market City Parking Lot #6North Old Woodward north of Harmon

MI Earth Day

2010-03-31T11:19:00.000-04:00

The MI Earth Day Fest in Rochester, April 23-25, offers a wide variety of fun, informative, healthy and earth-friendly experiences. Throughout the weekend, you'll enjoy over 200 green and wellness exhibits, displays, presentations, networking roundtables, organic food service, entertainment, kids' corner, a farmers market, petting farm, and many special activities including a parade and trail race. On Friday and Saturday evenings, a Party for the Planet organic beer/wine tent will round out the festivities.
Earth Day Fest website

ROLLERCOASTER RIDE!!!

2010-03-20T11:21:00.000-04:00

The residential real estate market went on quite a roller-coaster ride in the past decade, rising to mid-decade peaks only to fall into the trough it remains in as of late 2009. While it may seem like real estate prices will never rise again - just like it seemed that they would never stop rising earlier in the decade - the real estate market is, at its heart, cyclical, and what goes down is bound to rise again.

Many experts believe that the market will continue to fall through mid-2010 but will find a bottom by the end of the year. The exception: extremely distressed real estate markets in California, Nevada, Arizona and Florida, which are likely to continue to fall into 2011. In the longer term, a number of factors - including interest rates, foreclosures, currency valuations and unemployment rates - will determine how quickly home prices begin to appreciate again.

BUNNYVILLE AT THE ZOO

2010-03-18T11:25:00.000-04:00

Bunnyville at the Detroit Zoo is the perfect way to hop into Spring. The event will take place this year on April 3, 2010 from 10 a.m. to 4 p.m.Sponsored by Meijer, Bunnyville will feature games and prizes, costumed characters, treats, crafts and plenty of entertainment. Kids and adults will have plenty of opportunities to visit and take pictures with the Easter Bunny at photo stations throughout the zoo. Bunnyville guests are encouraged to bring a canned or other non-perishable food item to be donated to Gleaners Community Food Bank. Admission for guests with a food donation is $5, parking not included. Zoo members are free but are also encouraged to bring a canned food donation. For more information visit the Detroit Zoo's Web site.

Is Home Equity Retirement Value Gone?

2010-03-17T11:13:00.002-04:00

Moody's prediction could mean that hundreds of thousands of Americans may find it impossible to sell their houses without making payments to their banks to cover underwater home loans. In many parts of the country, which include large states like New York and Illinois, home prices will not rebound to 2006 levels until 2018 to 2022. In the states where prices have fallen the most values may not rebound until 2024, The prediction, if correct, means that Baby Boomers & even some of their older children may not be able to sell their home to help finance retirement.
Home equity loans will be out of the question. Some homeowners will have to give banks money to get out from under their houses, default because they cannot afford to sell their homes at a loss, or stay in homes that they no longer need. The housing crisis, it seems, still has at least 15 years to go and for some older Americans that is a lifetime.

MOODY'S IS BEARISH ON HOUSING RECOVERY

2010-03-15T11:05:00.000-04:00

Moody's Investors Service threw cold water on optimistic projections of a V-shaped recovery in the battered U.S. housing market, predicting it could take more than 10 years to get back to boom-level prices. "For many reasons, the rebound will be disproportionately small compared to the decline," Moody's said this week in its latest outlook on the residential market. "It will take more than a decade to completely recover from the 40% peak-to-trough decline in national home prices."

The housing market is in the third year of the current downturn, one of the worst corrections in U.S. history as a result of the economic recession and the mortgage industry nearly grinding to a halt during the credit crunch.

"The bursting of the housing bubble precipitated a crisis in financial markets the likes of which have not been seen since the Great Depression and plummeted the nation into recession," Moody's said.

"The scars that this downturn will leave on the economy and the housing market will be long lasting and persist in nearly all facets of the housing industry, including the demand for homes, ownership patterns, homebuilding, and house price appreciation," the analysts forecast.
"It will take more than a decade for many measures of housing activity to regain ground that has been lost as a result of the correction: The intense downturn will overcorrect for the excesses in the housing market generated by the boom years," they added.
Complete article at: Moody's is Bearish

LOOKING FORWARD TO AN IMPROVING SPRING MARKET

2010-03-10T11:09:00.001-05:00

February has picked up speed, indicating that the tax credits may be having a more significant impact than we had first projected. I am hearing stories of move-up buyers acting as a direct result of the $6,500 credit, which we had not expected. In addition, with inventories shrinking, we are moving towards a balanced market in some price ranges. Behind that good news there still continues an underlying weakness with inventories still in the Buyer's Market range for most price ranges (Months Supply of Inventory moving from 8 months to 4 months under $100,000 and from 24 to 9 months over $100,000 Feb 09' vs. Feb 08').

We still project a slowing market the second half of this year and it will feel even slower than it really is because of comparisons to a very strong second half of 2009.

A new wild card in the process is the implementation of HAMP (Home Affordable Modification Program - for loan modifications) and HAFA (Home Affordable Foreclosure Alternative Program - for short sales) in April. These two Federal initiatives are designed to reduce the number of foreclosures and stream line the Short Sale process. Their success will depend on the lenders ability to shift, staff up and train to the new program. We expect it to be a slow start, but, if effective, they do offer the opportunity to help offset the effects of the growing "Shadow Inventory" of delinquent, bank inventory and not yet foreclosed properties.

Although the market is by no means robust, this will be the best spring in the past three years for Sellers and in relative terms the best values in years for Buyers. A rare perfect moment for all parties!

The article is from our real estate company blog: "Lets Talk Real Estate"

5 Questions to Ask Before Considering a Reverse Mortgage

2010-02-22T21:50:00.001-05:00

1. Do you really need a reverse mortgage? Why are you interested in these loans? What would you do with the money you would get from one? Are the needs you intend to meet really worth the high total cost of these loans?
2. Can you afford a reverse mortgage? These loans are very expensive, and the amount you owe grows larger every month.
3. Can you afford to start using up your home equity now? The more you use now, the less you will have later when you may need it more, for example, to pay for future emergencies, health care needs, or everyday living expenses.
4. Do you have less costly options? Do you have other financial resources that you could use instead of taking out a loan?
5. Do you fully understand how these loans work? Reverse mortgages are quite different from any other loans, and the risks to borrowers are unique. Before considering one, you need to do your homework carefully and thoroughly.

False Advertising & Unsuspecting Seniors

2010-02-20T21:46:00.000-05:00

False advertising, while not new, is cropping up often enough in direct mail pieces to prospective reverse mortgage customers that public and private authorities are expressing concern. Often appearing as if it is coming from an official (i.e. government) source, the appeals offer to help unsuspecting recipients - usually seniors - take the necessary and proper steps to obtain this specialty financial product. "It is a source of concern," says Peter Bell, president of the National Reverse Mortgage Lenders Association, who notes that the mailings "are not coming from lenders, but lead generation companies that don't understand the product." He adds that the most common mailings "are impersonations of government agencies which are not stating that HECM/reverse mortgages are a loan program."

PROS & CONS OF REVERSE MORTGAGES

2010-02-19T21:41:00.003-05:00

These loans come with onerous expenses, but they do have some redeeming value. Read about the pros and cons, and check out the link provided below.

1. You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options.

2. Income from reverse mortgage generally does not affect Social Security or Medicare benefits.

3. Debt isn't passed on to heirs. Loan balance is deducted from proceeds of home sale.

4. If you "outlive the loan," meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC.

5. Loan advances are generally not taxable.

6. Most loans do not have income requirements.

7. Homeowner retains title to home.

8. No payments are due until last surviving borrower dies, sells the home or no longer lives in home as primary residence.

9. HECM programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due.

10. After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.

The downsides of reverse mortgages

1. Reverse mortgage proceeds could impact Medicaid eligibility.

2. Borrowers must be at least 62 years old to qualify.

3. Lenders generally charge origination fees and other closing costs that are usually steep.

4. Lenders require free debt counseling prior to loan application.

5. Lenders may charge servicing fees during term of the mortgage.

6. Debt increases over time as interest is charged to outstanding balance of loan.

7. Most loans have variable interest rates tied to short-term indexes, such as the one-year Treasury bill or LIBOR.

8. As home equity is used up, fewer assets are available to leave to heirs.

9. Interest is not tax deductible until the loan is paid off.

10. Borrowers are responsible for paying taxes, homeowners insurance, maintenance costs and other expenses. If they don't, the loan may become due.

DO YOUR HOMEWORK. Determine what type of reverse mortgage you might need. Do you need a one-time payment to help pay for home improvements or property taxes? Consider a single-purpose reverse mortgage. Call the Area Agencies on Aging to explore this option at 1-800-677-1116. Ask for information about loan programs for home repairs or improvements or for property tax postponement. To find an agency near you, visit www.eldercare.gov. Do you need money for another purpose altogether? Do as much homework as possible before contacting an HECM or proprietary lender.
Complete Article

REVERSE MORTGAGES - LOAN TYPES & COSTS

2010-02-15T21:36:00.002-05:00

The most well-known and widely available reverse mortgage is the federally-insured Home Equity Conversion Mortgage (HECM). This loan is backed by the U. S. Department of Housing and Urban Development (HUD) and can be used for any purpose. It is generally offered by mortgage companies or banks.

Some state and local governments offer low-cost reverse mortgages that generally must be used for one specific purpose only, for example, to make home repairs or pay property taxes. Many of these "public sector" loan programs are only available to homeowners with low or moderate incomes.

"Proprietary" reverse mortgages are owned and backed by the private companies that develop them. These loans can be used for any purpose and are generally the most expensive type of reverse mortgage.

Loan costs can vary by a lot from one type of reverse mortgage to another. Not all reverse mortgages include the same types of loan costs. As a result, the true total cost of reverse mortgages can be difficult to understand and compare. This is the reason federal Truth-in-Lending law requires lenders to disclose a "Total Annual Loan Cost" for these loans.
AARP Loan Types article

REVERSE MORTGAGE - HOW THEY WORK

2010-02-10T21:30:00.002-05:00

With a reverse mortgage, homeowners borrow part of the equity they have in their property. The principal and accrued interest are repaid only after they die or move out. Over time the owner's equity diminishes while the amount of the loan increases-the opposite of a traditional mortgage. Unless you fall behind on taxes or allow the house to slip into disrepair, the lender can't foreclose on the property, even if you live many years beyond expectations and the size of the debt surpasses the value of the house itself. In most cases, the proceeds of a reverse mortgage can be taken in a lump sum, an open line of credit, or as monthly payments.

Though reverse mortgages have been available for more than 25 years, they've become more widespread recently. In fiscal 2007, the Department of Housing and Urban Development insured upward of 100,000 reverse mortgages, compared with less than 7,000 in 2000. HUD, through its many authorized lenders, is by far the largest reverse-mortgage provider, with almost 90 percent of the market.

Moreover, as average life expectancy continues to rise, older folks need more money than before to get through their retirement years. They may be less concerned about passing on large sums to their children, who are often middle-aged and financially settled by the time of their parents' deaths.

How They Work - Comsumers Report

6 High Impact, Low Cost Updates

2010-01-22T20:14:00.002-05:00

1. Tidy up kitchen cabinets.
Potential buyers do open kitchen cabinets and look inside.
2. Add or replace tile.
Every city has stores that offer $1 to $2 tile, so home owners have to pay only for the low-cost tile and labor to replace a dated backsplash, add a new one or update bath tile.
3. Add a breakfast bar.
When a wall separates a kitchen from a family room, cut out an opening to create a breakfast bar & add light to the room
4. Install granite tile instead of a slab.
Home owners can put in 12-inch granite tiles for about $300 in materials and get very high impact for little money.
5. Freshen up a bathroom without retiling.
Put in a new medicine cabinet for $100 to $150, light fixtures for about $100, a faucet for $50 to $75, and a vanity for $200 to $300.
6. Freshen up the basement.
With cement block or poured concrete walls in the basement, have a contractor fill in cracks with hydraulic cement and then paint with waterproofing paint, then add a top coat to add color. Also paint the basement floor with a good floor paint, which spiffs it up. The basement may not be finished, but it’s no longer a damp dungeon.

Foreclosures Soar Despite Effort to Delay Them

2010-01-17T20:11:00.001-05:00

This is an excerpt recent Free Press (Jan 14th) article that includes our company president's remarks about the effect more foreclosures coming on the market may have on the numbers of buyers looking for properties in 2010. Experience has shown that these buyers are often disappointed by the condition of foreclosed properties and once they have decided to buy, will look to private owned properties for their purchase.

Foreclosure filings in Michigan jumped last year even with a freeze on foreclosures, suggesting that 2010 could be another rough year in a state where one out of every 38 households is in foreclosure. Michigan ranked 1/8 nationwide for its foreclosure rate in 2009. ( national rate of 1 foreclosure /45 households).

Properties heading for a sheriff's sale shot up 55% last month from the previous month, indicating some of those homeowners initially helped by the moratorium were headed toward a bank repossession, anyway.

RealtyTrac data indicates that more than 900,000 properties nationwide are held by banks, but 450,000 of those are not on the market for sale.

In Michigan, housing inventory has fallen from a high of about 60,000 homes on the market in the spring of 2008 to about 31,000 for sale now, according to Dan Elsea, president of brokerage services for Real Estate One in Southfield. Elsea said a significant portion of the reduction in inventory comes from fewer bank-owned homes on the market. He said he expects up to 10,000 additional foreclosures to hit the market this year. "The good news is as inventories rise, more buyers come out to play, so we can expect that to increase sales activities over what would have normally occurred," Elsea said.
http://www.freep.com/apps/pbcs.dll/article?AID=/20100114/BUSINESS06/1140412/1318/Foreclosures-soar-despite-effort-to-delay-them&template=fullarticle

Home Buying Trends in 2010

2010-01-16T15:43:00.000-05:00

Smaller in Size, But Big on Amenities

Today’s inventory of homes includes a wide selection of styles, price points that cater to the growing trends of smaller size, but with more amenities.

Current home buyers are searching for homes that reflect their own personal lifestyles. At the same time, they must be a great value with a thoughtful floor plan. High performance and quality matter over quantity.

What Do Most People Want in a New Home?
Open Floor Plans – 1st Floor Masters – Updated Appliances – Granite Countertops – Updated Baths - Cozier – More Organized – More Economical in Terms of Operating Costs

Now, That’s Entertainment!
Basements have become entertainment showplaces, where custom built-in bars, theater areas, exercise rooms and guest suites give friends and family an open invitation to stay for a while. Homes have become a source of entertainment for owners who want to trade in a night on the town for take-out and a movie on the flat screen.

New Home Buyers are Willing to Pay for Energy-Efficiency
According to industry experts, home buyers are becoming more aware of how their home functions and are willing to invest more upfront on products to make their home more energy efficient.

Signs of Improvement Make 2010 a Promising Year, but more challenges are yet to come

2010-01-15T20:06:00.003-05:00

But more challenges are yet to come . . .

2010 looks to be another year of low sales prices & fierce competition from other sellers. Foreclosures at bare-bones prices continue to give sellers plenty of competition.

Fortunately, today’s buyers are looking for move-in ready homes which excludes many foreclosures that are not in the best shape when they hit the market. Preparing your home for sale -- which can include cleaning, making repairs, making upgrades and staging -- can help your home stand out from the foreclosure down the street and get you a higher sales price.

#1: More Buyers Entering the Market
The First-Time Homebuyers credit extension and expansion to existing homeowners with higher incomes should encourage more 1st time buyers to purchase a home or move-up buyers to make the move.
#2: More Foreclosures to Come
Home values may be stabilizing in some markets, but challenges still lie ahead. Between rising unemployment rates, a backlog of homes already in the foreclosure process and many adjustable rate mortgages scheduled to reset next year, more foreclosures are expected to hit the market in 2010.
In an attempt to mitigate the effect of these new foreclosures, Fannie Mae has come up with a potential solution: The mortgage giant will allow some people losing their homes to foreclosure to lease those properties back for up to a year at market rental rates. (D4L or “Deed for Lease” program)The agency hopes this program will help stabilize neighborhoods by keeping more people in their homes. https://www.efanniemae.com/sf/servicing/d4l/
#3: Lending Standards Still Tight
According to the Federal Reserve, fewer banks tightened their lending standards in the third quarter of 2009. However, that doesn't mean lending standards have gotten looser, either. In 2010, banks will continue to keep the subprime mortgage debacle in mind and require extensive documentation and stellar credit from borrowers.
#4: Rising Mortgage Rates
In 2009, the Federal Reserve bought up a massive amount of mortgage-backed securities, keeping mortgage rates at historic lows for much of the year. However, the Fed is scheduled to end those efforts in March 2010, meaning mortgage rates could jump as much as a full percentage point next year. If you're considering buying a home, now would be the time to take advantage of historically low interest rates. If you're a current homeowner thinking about refinancing, act now.
#5: Tricky Appraisal Rules
Ridiculously inflated home prices in many markets contributed to the housing crisis, motivating the federal government to pass the Home Valuation Code of Conduct (HVCC) -- a set of rules that determines how appraisals should be made -- in May 2009. The law aims to distance appraisers from the real estate transaction so they can provide an unbiased, objective analysis of a property's market value.
Real estate agents argue that the system is flawed and deals are falling through because of the ever-changing, lengthy maze of rules. Long story short: With the new rules in place, appraisals now take longer, are more expensive and are often conducted by appraisers unfamiliar with the local market.
#6: Smoother Short Sales
In 2010, this problematic process should become much smoother. Lenders and real estate professionals alike are working on ways to streamline the short-sale process. More real estate companies are training their agents to do these specialized sales, and lenders will be more open to processing them.
#10: Cash Is King
If you plan on buying a home in 2010, especially a low-priced foreclosure or short sale, be prepared for competition. Demand is high for these properties, so it's not uncommon for bidding wars to break out over them. Real estate investors are particularly tough for regular buyers to contend with: Many investors are making all-cash offers, and banks -- who are often more concerned with making a speedy sale than with getting the highest price possible -- are accepting these offers over higher-priced offers where loans are involved. To stand out from the competition, make your offer as attractive as possible. That means saving up a sizable amount of cash for a down payment and making an offer that's close to -- or even above -- asking price.

2010 Trends In Home Decor

2010-01-10T14:51:00.002-05:00

It is interesting how the economy effects how we arrange our home around us and what feels comforting depending on which way the economy is trending. With the economy in a downward trend, people are getting back to basics. Homemade, homegrown & recycled are the buzzwords these days. In addition to seeking out more economical lifestyles, people seem to be going back to times they remember as "better". The following predicted trends demonstrate that back to home desire.

To Grandmother’s house we go:

Patricia Shackelford thinks we’ll see more patchwork quilts, hooked rugs, needlepoint and chintz. “On ‘Top Design,’ a contestant (Ondine Karady) was criticized for being too ‘grandma’ for using a crocheted throw,” Shackelford said. “Actually, she was on to the next trend.” Shackelford said it’s the return of Sister Parish design, using heirlooms or pieces with history. “It’s a way to bring comfort to formality,” she said.

Graffiti furniture:

Antiques in recent years have become more affordable, but some pieces can be unwanted, drab even, and call for help. “Antiques don’t always have to be these sacred things,” Keith Johnson said. “They can be reinterpreted.”

Made in the U.S.A.:

In 2010 and beyond, a “made in the U.S.” label will resonate strongly with buyers, because people want to strengthen the economy. Buying more local items also is better for the environment.

Homestead chic:

More of us are growing vegetables, crafting our own cheeses and battling city hall to keep chickens in our backyards. Just as we’ve been reconnecting with the land, look for that bond to strengthen in the rest of the home. We’ll use more locally harvested wood and reclaimed barn wood. We’re becoming fonder of burlap-style grain-sack and rustic linen pillows. The fabrics follow on the heels of the classic rural European look popularized by Belgian designer Axel Vervoordt. He sparingly mixes industrial furniture with worm-holed unstained wooden pieces.

Flea market frenzy:

Many homeowners made their first visits to flea markets and thrift stores in 2009, a trend that will get even bigger in the New Year. “People aren’t doing the full-scale bathroom and kitchen re-dos they were a few years ago,” Dunham said. “But they can easily perk up a room with textiles or a new lamp.”

Article By susanne On January 9, 2010 http://rismedia.com/2010-01-09/6-home-trends-you-can-bank-on-in-2010/

D4L (“Deed for Lease”) Program Criteria

2010-01-05T14:37:00.000-05:00

· The mortgage loan is a first lien mortgage loan secured by a one- to four-unit property. All property types are eligible. Second lien mortgage loans are not eligible.

· The mortgage loan is not guaranteed or insured by a federal agency (FHA, HUD, VA, or Rural Development).

· The borrower resides in the property as a primary residence or has leased the property to a tenant who uses the property as a primary residence. Second homes or vacation homes are not eligible.

· At least three payments have been made since origination or since the last modification.

· At the time of the referral to Fannie Mae for the D4L, the borrower is not 12 or more payments past due on the mortgage loan.

NEW PROGRAM - RENT & AVOID FORECLOSURE

2010-01-05T14:34:00.001-05:00

D4L (“Deed for Lease”) program allows qualifying borrowers of properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home and community by executing a lease of up to 12 months in conjunction with a DIL with possible month-to-month extensions.

This is a program designed to minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities, and home price stabilization.

It also helps save money because the lender does not need to complete the often lengthy and time-consuming foreclosure process.

Fannie Mae executives said the rental program is designed to help delinquent homeowners who don't qualify for a loan modification, but still want to stay in their homes.

The plan could be particularly attractive in our area where homeowners are stuck paying large mortgage payments on properties that are now worth less than they paid for them.
At the same time, rents have been falling in the area. A homeowner could wind up paying far less every month by renting their current home.
Still, the effort is likely to attract a relatively small number of homeowners. In the first nine months of 2009, Fannie Mae took ownership of nearly 2,000 properties through a process known as a deed-in-lieu of foreclosure. That pales in comparison to the 90,000 foreclosed properties the company repossessed in the period.
For further information: https://www.efanniemae.com/sf/servicing/d4l/

A HIGHER PRICE WILL BRING A HiGHER OFFER?

2010-01-03T14:32:00.001-05:00

Many home owners believe: We should price the house higher, because we can always lower the price right away if we don’t get an offer.”

THIS IS A MYTH!

Once upon a time, buyers first saw your house through a newspaper ad, magazine ad or maybe a flyer in front of your house. Now, most buyers start on the internet. Even if your house has the basics of what they are looking for, if it is not priced “competitively”, they will click on to the next house.

Once a buyer has selected a variety of houses they are interested in actually going out to looking at, they will call an agent. While talking with an agent, they will find that agent knows the current inventory and what properties will fit their needs – especially in the price range they are qualified for.

Buyer’s agents are not swayed by advertising. They know the needs of the client and the price range. If your house is overpriced, agents will show similar houses that are priced more attractively. Your listing will get passed over.

“New” listings get an agent’s attention. Buyer’s agents are constantly on the lookout for new properties coming on the market that meet their buyer’s criteria. Your listing will get passed over if it is overpriced. Your property is only “NEW” on the market once.

"But I'm willing to negotiate!"

Buyers are not thinking in advance about how much you are willing to negotiate. They don’t want to fall in love with a house that is not within a range they can qualify for. They are comparing your asking price to other asking prices.

Price your house competitively from the beginning based on the condition, location, and current market. Statistics indicate your first offer is often the best offer. Correct pricing will expose your house to as many buyers as possible who are looking for a house just like yours!

Be wary if you build, remodel a home

2010-01-02T14:42:00.001-05:00

This is a great article published in the Free Press for those who are considering doing some updating or remodeling to their home.

Thousands of Michigan consumers who build or remodel a home could face higher costs and a greater risk of legal problems because of the insolvency of a little-known Michigan fund.
The Michigan Homeowner Construction Lien Recovery Fund has operated since 1982 to protect homeowners from having liens slapped on their property for work they've paid for. The fund pays subcontractors for work they've performed when a developer or general contractor doesn't pay his or her workers.

With the nationwide real estate crash, many developers and general contractors have gone broke, leaving subcontractors unpaid. Those subcontractors in turn have swamped the state fund with claims to the point where the fund is broke.

With no way to get paid for past work, subcontractors either will make consumers pay more up front or slap liens on consumers' homes -- which means a homeowner could face a bill of several thousand dollars that already was paid to the general contractor. Moreover, the house can't be sold until the lien is taken care of.

Claims exhaust builders fund

Lumber dealer Robyn Beckett of Warren has gotten squeezed by the depressed real estate market just like thousands of other suppliers and subcontractors in the state. Not only are sales down, but she's not getting paid by many longtime customers. "I have 6-foot-2 guys sit at my desk, crying. They say, 'I know I owe you the money and I want to pay you, but I have no work,' " she said.

Over many years, a State of Michigan fund cushioned such hardship for suppliers and subcontractors by paying for work when a developer or general contractor stiffed his or her workers. The fund protected consumers, too, because subcontractors didn't have to slap liens on homeowners' property for work the owners had already paid for.

But now, the Michigan Homeowner Construction Lien Recovery Fund is broke -- a victim of too many claims stemming from the nationwide real estate crash.

The result of the fund's insolvency: Even more construction industry contractors and suppliers are likely to go bankrupt, and more liens and lawsuits are likely to be filed. Both outcomes could further chill Michigan's already depressed real estate markets.

New Vocabulary for a New Market –“Strategic Default”

2009-12-17T16:44:00.005-05:00

It used to be unthinkable to stop paying the mortgage.

More Americans are finding themselves “underwater” on their mortgages. They owe more to the bank than their properties are worth. A house that was purchased for $240,000 several years ago, and there is still $218,000 outstanding on the loan, now finds the property is only worth $130,00 or less. Even if the homeowner can still afford to pay, should they? Especially when they can rent a comparable space for less than their mortgage payment.

More and more people, where house values have plumpeted are considering a “strategic default” – walking away from their mortages – not out of necessity, but because they think it is in their financial best interest.

A standard mortgage-loan document reads, "I promise to pay" the amount borrowed plus interest, and some people say that promise should remain good even if it is no longer convenient. What makes it immoral for a homeowner to walk away from debt, but we have allowed banks to walk away from debt with impunity? Should borrowers take a cue from lenders that ruthlessly sought to maximize profits or minimize losses irrespective of concerns of morality or social responsibility.

Strategic Default is not without its risks. Walking away isn't risk-free. A foreclosure stays on a consumer's credit record for seven years and can send a credit score plunging. A lower credit score means auto and other loans are likely to come with much higher interest rates, and credit card issuers may charge more interest or refuse to issue a card.

As the idea of a strategic default makes more sense to homeowners with negative equity, will we see more decline in values. In neighborhoods with high concentrations of foreclosures, is it going to be really difficult to prevent a “cascade effect" as one strategic default emboldens others to take that drastic step?

First American CoreLogic, a real-estate information company, estimates that 5.3 million U.S. households have mortgage balances at least 20% higher than their homes' value, and 2.2 million of those households are at least 50% under water. The problem is concentrated in Arizona, California, Florida, Michigan and Nevada.

What would you do?

If You Walk Away, Who Can Sue You for a Deficiency Judgment... And Will They?

What is a Foreclosure?

2009-12-13T10:15:00.002-05:00

Foreclosure is a legal process by which a bank, mortgage company or other creditor takes a homeowner’s property in order to satisfy a debt. The foreclosure is the result of non-payment of the mortgage (including second mortgages and home equity loans); however, people also lose their homes due to unpaid property taxes. As a result of the foreclosure (at the end of the redemption period), the homeowner loses the rights he or she had to the property.

FORECLOSURE TIMELINE:

Day 1-15
Mortgage payments are typically (not always) due on the first of each month. If the payment is not made by the due date it is considered delinquent.
Day 1-15
A late fee is usually assessed to the mortgage account after day 15. The first notice is usually mailed on the 16th of the month. You may begin getting phone calls at this time.
Day 31-45
Servicer sends “demand” or “breach” letter to the borrower pointing out that terms of the mortgage have been violated.
Day 61-90
When a loan is 60 days past due, the lender may initiate acceleration procedures by sending a letter notifying the borrower that foreclosure is the next step. At this time the lender will only accept your total past due which includes: all past and current payments with late fees and interest.
Acceleration procedures include lenders refusing to accept any partial payments and requiring that the past due balance on the mortgage be paid in full, and can even mean that the lender will void any payment agreement and call the loan due in full.
Day 91-105
Servicer refers loan to foreclosure department. Hires local attorney or other firm to initiate foreclosure proceedings.
Once acceleration begins, if you abandon the property or the property is red tagged, your home may be repossessed. This may include your locks beginning changed and your utilities are disconnected.
Foreclosure proceedings can start any time after the acceleration notice is sent, but usually happens when the loan is 90 or more days past due. This is when attorney fees become a significant part of the fees due.
Day 150-415
House sold at foreclosure sale or auction. Wide time range due to different state requirements. Foreclosure can happen in Michigan either by judicial action or by newspaper advertisement (sheriff sale). The most common foreclosure action in Michigan is by advertisement. In this procedure, the lender’s attorney advertises the property for sale in a general-circulation newspaper for four consecutive weeks.
The sheriff sale date is listed in the advertisement, and following the four weeks the county sheriff sells the property to the highest bidder (which is usually the lender).
The officer conducting the sale will execute and deliver a “sheriff’s deed” for the premises to the highest bidder. The deed will specify the last date that the mortgagor can redeem the property. This deed must be recorded within 20 days of the sale, and the person recording the deed will endorse the date and time it was received on the document. If the property is redeemed the sheriff’s deed will be destroyed.
Day 150-415+
After the property is sold at a sheriff sale the mortgagor has a redemption period during which time the property can be reacquired. The redemption period in Michigan is usually six months, except in situations where there are more than four units; less than 2/3 of the original debt owed, multiple acres and/or abandonment occur. In order to redeem the property at this point you must pay off the mortgage, all interest and late fees, court costs, attorney fees, title and appraisal fees. If the sheriff deed holder paid taxes or insurance after the sheriff sale, the mortgagor must pay those fees as well. Redeeming the property by getting another mortgage is very difficult because of the bad credit rating that resulted from the foreclosure. Redeeming the property by selling it on the market is often a good option. If the property is redeemed, the original rights and obligations of ownership are reinstated.

Home Inspections Avert Future Headaches

2009-12-13T09:15:00.002-05:00

Suppose you bought a house and later discovered, to your dismay, that the stucco exterior concealed a nasty case of dry rot. Or suppose that when you fired up the furnace in the winter, you discovered a cracked heat exchanger leaking gas into your home. The best way to avoid unpleasant surprises like these is to arrange for a home inspection before you buy.

Home Inspections Help You Avoid Unpleasant Surprises

A good home inspection is an objective, top-to-bottom examination of a home and everything that comes with it. The standard inspection report includes a review of the home's heating and air-conditioning systems; plumbing and wiring; roof, attic, walls, ceilings, floors, windows, doors, foundation and basement.

Getting a professional inspection is crucial for older homes because age often takes its toll on the roof and other hard-to-reach areas. Problems can also be the result of neglect or hazardous repair work, such as a past owner's failed attempt to install lights and an outlet in a linen closet.
A home inspection is also a wise investment when buying a new home. In fact, new homes frequently have defects, whether caused by an oversight during construction or simply human error.

Getting an Inspector

Real estate agents can usually recommend an experienced home inspector. Home inspections cost about a few hundred dollars, depending on the size of the house and location. Inspection fees tend to be higher in urban areas than in rural areas. You may find the cost of inspection high, but it is money well spent. Think of it as an investment in your investment – your future home.

Some builders may try to dissuade you from getting a home inspection on a home they've built. They may not necessarily be trying to hide anything because most builders guarantee their work and will fix any problems in your new home before you move in. Some builders, in fact, will offer to do their own inspections. But it’s best to have an objective professional appraisal - insist on a third-party inspector.

An Inspection Will Educate You about Your House

Education is another good reason for getting an inspection. Most buyers want to learn as much as they can about their purchase so they can protect their investment. An examination by an impartial home inspector helps in this learning process.
Ask if you can follow the home inspector on his or her rounds. Most inspectors are glad to share their knowledge, and you'll be able to ask plenty of questions.

Inspection Timing and Results

Homebuyers usually arrange for an inspection after signing a contract or purchase agreement with the seller. The results may be available immediately or within a few days. The home inspector will review his or her findings with you and alert you to any costly or potentially hazardous conditions. In some cases, you may be advised not to buy the home unless such problems are remedied.

You could include a clause in your purchase agreement that makes your purchase contingent upon satisfactory inspection results. If major problems are found, you can back out of the deal. If costly repairs are warranted, the seller may be willing to adjust the home's price or the contract's terms. But when only minor repairs are needed, the buyer and seller can usually work out an agreement that won't affect the sale price.

What does REO mean?

2009-12-12T09:10:00.001-05:00

What does REO mean?

REO stands for Real Estate Owned. In the current real estate market, banks and lending institutions have had to take back thousands of properties in the foreclosure process. Bankers are now finding themselves in the real estate business instead of the lending business. Whole new departments are springing up inside of a bank’s organization. In 2005 you never heard of a short sale department or loss mitigation. Now they are commonplace.

Military Families Receive Extra Benenfit from Home Buyer Tax Credit

2009-12-06T08:55:00.003-05:00

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.

Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase.

Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

IMPORTANT! - HOME BUYER TAX CREDIT IS REFUNDABLE!

2009-12-04T08:50:00.002-05:00

-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

-For example:-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).

-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.