Tips and Tricks from Michigan Listing.com

Kitchen is no place to skimp on lighting

2008-02-15T09:31:00.002-05:00

Brightening tips to make cooking, cleaning even more fun!

When it comes to lighting, few places in the home are more important than the kitchen. From general lighting to specific task lighting, a well-designed lighting plan makes the use and enjoyment of any kitchen a much brighter undertaking.

GENERAL LIGHTING

General lighting is what comes on as you first enter the room. It should brighten up the room well enough that you can see to enter and move around the room, and to perform basic tasks, such as getting something out of the refrigerator.

In many kitchens, general lighting is accomplished with one or two incandescent or fluorescent light fixtures, or by a group of recessed can lights. The general lighting fixtures should be controlled by a switch that is easily accessible as soon as you approach or first enter the room. If there are two entrances to the room, the same group of fixtures can be controlled from both locations using a 3-way switch.

TASK LIGHTING

Task lighting, on the other hand, comes from fixtures that are strategically placed to provide good lighting for performing specific operations, such as cooking or cleaning up. Since the general lighting sources are located high up on the ceiling and behind you wherever you are in the room, your body typically blocks or shadows some of that light, which is why specific lighting fixtures dedicated to specific areas are so important. Task lighting may be in the form of recessed cans, fluorescent fixtures, halogen lights, or any combination. To conserve energy and prevent over lighting or overheating the room, activation of the task lighting is generally broken up between several switches.

To lay out your task lighting, first envision how the kitchen will be used. One or more fixtures should be located over the sink, to provide direct overhead lighting for cleanup and food preparation. Recessed lights work well here, as they can be directed very specifically to light the sink. The over-sink fixture should be on its own switch.

Cooking tasks require their own light source as well. If you have a range hood that is located above your cook top or range, the light that is located within the hood may be sufficient, or you can add a recessed fixture to the ceiling that is located to provide as much direct light down onto the cooking surface as possible. The fixture in the hood will have its own switch, and any other specific cooking area light should be separately switched as well.

Islands can present another task lighting challenge. Here again, recessed fixtures can be used to good advantage to light up the island, or you can consider one or more hanging pendant lights over the area. Some lighting designs will have the island lights come on as part of the general lighting, but most will target these lights with separate switches as well.

One kitchen lighting area that is extremely important but often overlooked is the countertop. Between the combination of your body as you stand at the counter and the bulk of the wall cabinets, much of the counter area is severely shadowed, and yet this is where much of the work in the kitchen is done.

To overcome this, specific under-cabinet lighting is used. Perhaps the most common source are shallow fluorescent fixtures that are mounted to the underside of the upper cabinets. These under-cabinet lights come in a number of different lengths to make it easy to match the fixtures to the cabinet layout, and you should use an adequate number of them to provide even, shadow-free lighting on all the counters.

Small halogen fixtures, typically called puck lights for their resemblance to small hockey pucks, are also sometimes used in these areas. Puck lights are brighter, but may put out too much glare or too much heat in some areas, so take that into consideration as well.

Here again, you want to divide up the under-cabinet fixtures onto one or more specific switches. What usually works best is to envision how the counters will be used and then group the fixture switching so that the desired counter or group of counters is lit at the same time. For example, if you regularly use one section of counter for food preparation, all the under-cabinet lighting over that section of counter should be on the same switch.

All of these fixtures should be available from local lighting stores, electrical supply retailers, and home centers. Remember to use only UL-listed fixtures and parts, and always consult with a qualified electrician for assistance on any wiring project you're not comfortable with.

By Paul Bianchina, Inman News

High-efficiency furnace offers big payback

2008-02-08T09:01:00.000-05:00

Savings over cheaper model seen after 6.25 years

It's always a tough situation when a major appliance, such as your furnace, decides it's had enough of working for a living and chooses to quit producing any more heat. You have the heating contractor out to examine the situation, and you end up with options to repair the old furnace, replace it with a new one of the same type, or replace it with an upgraded model that is more energy efficient.

In making the decision on the best course of action, you have to weigh any number of factors, and the decision that follows is typically a difficult balancing act of budget constraints, expediency, energy savings, and comfort.

There's often not too much you can do about the first two considerations. If repairing the furnace can be done for $500 as opposed to several thousand dollars for a new one, that may dictate the decision. Likewise, if it's mid-winter and repairs can be done in a day when a new furnace would take two weeks to order and install, again the decision may be made for you.

But if you have the time to weigh all your options, and perhaps the possibility of arranging the necessary financing for a new furnace if that proves to be the best route, then the next thing you need to do is look at which option makes the most sense from a payback perspective.

Let's look at the case of two new gas furnaces, one standard, mid-efficiency model for $2,500, and one high-efficiency model for $4,000. Let's say that on a yearly basis, you spend an average of $100 per month on gas for heating. When you meet with the contractor, he tells you that you'll save approximately 20 percent on your heating billings. You've now reduced your gas consumption by $20 per month (20 percent of $100), or $240 per year.

The difference in the cost of the two furnaces is $1,500. At a savings of $240 per year, it would take about 6.25 years to earn back the difference. After that, you would be pocketing a savings of $240 a year for the life of the furnace, which could be 30 years or more. So, assuming that you will be staying in the house, and giving the furnace a life of 30 years, you could expect to save about $5,700 over the life of the furnace (23.75 years of furnace life after the initial payback period, times $240 per year savings).

All in all, a very good investment, based on some very hypothetical figures. There are lots of variables here, from the amount of labor involved in changing furnaces to the energy efficiency of your particular home and the lifestyle of you and your family. When you talk with the heating contractor and see the actual prices of the furnaces, and factor in the actual amount that you pay for heating fuel each month, you can plug those numbers in and get a more realistic idea of how it will work out for your specific situation.

Let's look at another common situation. You currently have an electric water heater, and your friends have been telling you that you'll save money by heating your water with natural gas instead. Your electric water heater is a little smaller than you like and is starting to show some signs of age, so you want to look at the replacement cost difference between the two. Again, these are hypothetical figures.

A replacement electric water heater is around $400. Since you're already wired and plumbed for it, the labor is only another $150, for a total of $550. The gas water heater is around $500 for the same capacity. However, the gas water heater will require that a gas line be run to it. Also, your old electric water heater did not require an exhaust flue, but the new gas one does. Depending on the difficulty in running the gas line and especially in adding a flue all the way to the outside of the house, that can add considerably to the cost. For example purposes, let's say it'll cost $1,100 for additional parts and labor, for a total cost of $1,600.

The two water heaters are both upgraded models, with high energy-efficiency ratings. According to the manufacturer's Energy Guide labels, you can expect to pay an average of $270 per year for fuel costs with the gas water heater, and $410 per year for fuel costs with the electric model, an annual savings of $140. The difference in installed cost between the two water heaters is $1,050, so the gas water heater would pay back its initial investment in 7 1/2 years.

Again, there are lots and lots of variables to consider when making these kinds of decisions. In addition to the straight financial calculations, you also have to factor in how long you will be in your home, what other homes in your neighborhood have done, and even the intangible effects of your decision on the environment.

A good place to start for accurate information when calculating payback costs on any energy-related investment, from appliances to weatherization, is your utility company.

By Paul Bianchina, Inman News

Home Staging & Staging a House - What is Home Staging?

2008-02-06T15:54:00.000-05:00

Dressing a House for Success - STAGING A HOME

Home staging is about illusions. It's how David Copperfield would sell a house. It's beyond decorating and cleaning. It's about perfecting the art of creating moods. Staging makes your house look bigger, brighter, cleaner, warmer, more loving and, best of all; it makes home buyers want to buy it.

Contrary to what you might think, it's about more than preparing the house for sale. Staging is what you do after you've cleaned, de-cluttered, painted, made minor repairs; it's all about dressing the house for sale.

What is a Professional Home Stager? Professional stagers are highly skilled artists. They can take a blank canvas and paint a sensuous portrait without ever lifting a paint brush. Stagers possess the skills of a top-level designer and they create dramatic scenery that appeals to all five senses. Here are some of their secrets:

 Arrange sparse pieces of furniture in an appealing grouping (vignette)
 Showcase a generous usage of soft fabrics such as silk, lambs wool, satin
 Display unusual knickknacks in units of 1, 3 or 5
 Drape window coverings with simple lines
 Add unique elements to draw attention to predetermined areas

What Accessories Does a Stager Use? Stagers bring in a vast array of items to spruce up the house. Here is a small sampling of items professional stagers often use to dress each room. How they are utilized is limited only by the creativity and vision of the stager:

 Mirrors
 Plants
 Silk Flowers
 Floor & Table Lamps,
 Area and Throw Rugs
 Small Love Seats
 Ottomans
 Afghans
 Pillows
 Inflatable Queen-Size Beds
 Baskets
 Plastic Tables & Chairs

Professional Staging Tricks & Tips: An artist for 35 years, Dawna Johnson, is an Accredited Staging Professional Master (ASP) and owner of Sacramento Staging Solutions. She says the idea behind staging is to allow rooms to show themselves. "If your home is vacant, it's soulless," Dawna warns. "Without staging, it will probably remain on the market for many months." She calls the kitchen the "heart of the home," and offers this practical advice for making that space sparkle:

 Apply orange oil to cabinets to renew their original luster
 Put out large bowls of fruit such as polished apples, bright oranges, etc.
 Arrange colorful and fun cookbooks on the counters

Dawna believes in bringing the outdoors inside through the use of greenery and plants; in creating clean, crisp spaces and arranging furniture with plenty of room to walk around. She says bathrooms are essential to dress well. "Bathrooms should look open, airy and delightful," says Dawna. One of her favorite tricks is to add baskets filled with spa treatments such as:

 Towels, tied with ribbons
 Scented soaps
 Creamy lotions
 Moisturizing & Facial jars

The back yard needs staging, too. For patios and decks, Dawna brings in plants and potted flowers, and adds additional color by setting the picnic table with bright, plastic dinner plates.

How Much Does it Cost? Prices vary depending on where you live and the local demand for professional home staging. Coastal areas and large metropolitan cities where home staging has been prevalent for years command higher prices. Some real estate agents help sellers Stage® the home themselves.

Most listing agents agree, however, that vacant homes show better with staging and will encourage sellers to hire a professional stager. Fees range from $500 to $5,000 or more, depending on square footage and the number of rooms staged.

by Elizabeth Weintraub

The 'No Buyers' Market!

2007-11-11T09:29:00.000-05:00

There are two parts to this column. The first is for home buyers and the second is for home sellers:

Buyers, everyone is telling you it's a buyer's market. Guess what, they are not telling you the truth. We are not in a buyer's market now. We are in a "no buyers market." If it were a buyer's market then all the buyers out there would be buying, but they are not.

That is why the inventory of homes is creeping up and up. Buyers are waiting because they think they will get a better deal later on. Home prices have slipped a little this last year, but nothing is falling off the cliff. You can wait until next year and maybe the prices will go down some more ... by 1 percent or 2 percent. Have you saved enough to actually wait when you can get the same savings now by entering serious negotiations with a seller? And while you are waiting, some other smart buyer has bought that dream home out from under you.

The people who are finding the right home now and negotiating hard for a good price are the ones who are getting the good deals. All the other people who are "thinking about buying" are missing the good deals. They will wait until the market turns around and becomes a seller's market.

Think about that for a second. You don't get the best deal if you wait until everyone jumps back into buying homes again. Smart buyers are buying now.

The second part of this column is for sellers who are wondering where the buyers are and why haven't they bought their home. Any home can be sold today if you follow the three most important things about real estate:

For years it was suggested that the three most important things in real estate were location, location, location. Once and for all, let's put that old joke aside. It has never been true. You can have the best location in the world for a home and it still will not sell. And there are homes in the worst locations that do sell. Why?
The location of your home may give you more money when you sell it. But you probably paid more for that same location when you bought the home, so the location did not really help you.

The real rules to know are price, presentation and management of the sale, which I will explain.

Rule 1: Price. We are talking about the asking price. In most cases the asking price is based on four factors. The first factor takes into consideration the homes similar to yours that have sold recently. Going back a year will give you a false price, because the market is always changing. The homes sold in the last six months will be an indicator of where the market is. It is not a perfect indicator, because we are looking backwards, but good enough.

The second factor is the homes that were for sale but did not sell. One of the major reasons homes do not sell is that the asking price is too high.

The third factor is the homes that are currently for sale. This is your competition. When it is time for a buyer to decide whether to buy your home or a home down the street, well, that is not the time for your home to be the bridesmaid. You want to be the bride.

Finally, the weakest of the four factors is that good old "gut" feeling. Too many homeowners rely more on that than on the other factors. Don't make that mistake. Your home is special, but until someone buys it, it's just another home for sale.

Rule 2: Presentation. When you go to the grocery store you pick out the best-looking fruit and vegetables. The same is true for home shopping. If it looks good, someone will buy it. If it looks bad, then only the cheap bargain hunters are going to make an offer, and they rarely give you a good offer.

Here are a few suggestions. Put in those higher wattage compact florescent lights to make the home look brighter. Don't just tidy up, throw the clutter out or give it away. Trim the shrubs. Shampoo the carpets. Paint the walls. Get rid of the animal smells. Set the dining room table as if royalty were coming to dinner. The small amount of effort you make to present your home properly will reap significantly higher offering prices. Ask your agent to help you stage your home. And remember that your agent is trained and has many years experience selling homes, so listen when he or she tells you that you need to change a few things in order to sell your home.

Rule 3: Management of the Sale. It is very difficult for homeowners to know all the information about pricing. The vast majority of homes are sold by a real estate agent who has ready access to that information. Online sites that offer to help you price your home properly are often badly out of date. But that is not the only reason to have a Realtor manage your sale.

Research has shown that a home sold by an agent will produce anywhere from 16 percent to 30 percent more dollars for the seller than owners selling on their own. That easily pays for the professional fee. Plus the agent is going to make sure everything is done correctly to safeguard the sale. That includes all the marketing and showings of your home.

If you set the price correctly for the current market, if you present your home in the best possible light and if you have a professional real estate agent manage the sale for you, then your house will sell.

By The Times-Union - David Anderson is a licensed real estate agent for Watson Realty Corp. and a member of the Northeast Florida Association of Realtors.

Preparing to Make Retirement Move

2007-04-30T15:52:00.004-04:00

Making a retirement move can be daunting. It involves a complicated decision-making process. When should you make the move? Where do you want to live? What kind of care will you need? How much can you afford? The mere thought that a retirement move could be your last move is enough to stop many seniors in their tracks.

Deciding where to move is never easy. There are arguments for staying in the community where you've lived for most of your life. You still have friends in the area. You have doctors with whom you've developed relationships over the years. You know the area; it's familiar. This can be a comfort during later years.

On the other hand, many seniors prefer to be close to children and grandchildren. This could mean moving to a community in which they've never lived before. The trade off is having family close by, which can add significantly to one's quality of life.

Seniors who are still independent, but who want a simpler lifestyle, may decide to make their retirement move in two phases. One couple, who weren't ready to move to a retirement facility, sold their Brighton, MI. home and bought a condominium in the same area.

In doing so, they freed themselves of the burden of maintaining their large family home, which left more time and money for travel and other pursuits. They were also able to adapt to living in smaller quarters before they moved to an even smaller apartment in a continuous care facility.

A recent article in the New York Times reported that two-phase retirement moves are becoming increasingly common as seniors live longer. Independent seniors first move to an active retirement community in states like Florida and Arizona where the winters are mild. When they need more care, they move to a second retirement community closer to their children.

Seniors who are contemplating moving to a smaller home before full retirement should consider buying early as a hedge against inflation. A retired nurse who lived in a large house with stairs bought a smaller, single level home years before she needed it. She rented the smaller property to a tenant until she sold her family home. Using this strategy, she came out ahead financially. She paid less for her retirement home than she would have if she had bought it later. And she netted a higher price on the larger, more expensive home than she would have it she had sold it earlier.

The retired nurse mentioned above had no difficulty implementing her retirement move. She had worked in hospitals where she'd cared for far too many seniors who hadn't planned for their later years. They waited until they were desperate to make the move, only to find that their options were limited.

It's wise to plan a retirement move well in advance. Most good retirement facilities have waiting lists. It could be difficult to find a place where you'd like to live on short notice. Also, many facilities will only accept seniors who are in good health, and who are not yet 83 years old.

A Hartland, MI. senior didn't want to be a burden on his children as he aged. He researched his retirement options and picked a retirement facility years before he needed it. He even selected the precise unit in which he wanted to live. He was put on a waiting list and waited for over two years. During this time, he de-cluttered his home and prepared it for sale. When he received the call that his unit was available, he was ready to go.

THE CLOSING: To find retirement options by area, visit www.NewLifeStyles.com or www.seniorhousing.net.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

Signs the Market is Changing

2007-04-30T15:52:00.003-04:00

Hot real estate markets don't stay hot forever. In some areas around the country, the home sale market has already slowed after being robust for several years.

For years, the unsold inventory index has been used to predict which way the market and home prices were moving. The unsold inventory index reports how many months it would take to sell the existing inventory of homes for sale at the current sales pace.

Changes in the unsold inventory index are directly related to changes in supply and demand. When the demand for housing goes up, the pace at which homes sell accelerates and the existing inventory of homes for sale decreases. As inventories shrink, prices often go up as more buyers compete to buy a limited number of listings.

When demand for housing goes down, it takes longer for homes to sell. Inventories tend to rise, as does the unsold inventory index. In this sort of environment, prices may decline.

Recently, the unsold inventory index has been at an all time low nationally. However, national trends don't necessarily tell you much about the pace of your local real estate market.

The local economy, particularly the job market, has a direct impact on the local housing market. People who lose jobs don't buy houses; in fact they often sell. In areas where job growth is strong, you often find a strong housing market. On the other hand, over-building in an area can also lead to excess inventory, which can put a downward pressure on prices.

The National Association of Realtors tracks existing home sales on a national and regional basis. These figures are often quoted in the media. However, existing home sale figures aren't necessarily a reliable predictor of the direction of the housing market because they are based on closed sales. Home sales typically take 30 to 60 days to close. The Existing Home Sale Index measures past sales activity. It doesn't tell where the market is going, or even where it is today.

On March 7, 2005, the National Association of Realtors unveiled a new diagnostic tool that will be much more useful in determining the future direction of the residential real estate market. The new Pending Home Sale Index, which will be released the first week of each month, measures home sales based on the date the sales contract is accepted rather than on the date the sale closes.

NAR touts the PHSI as a "leading indicator" of future home sale activity. However, like all tools used for predicting the future, the PHSI has its limitations. For one thing, a certain number of pending sales fall apart and never close. Even so, NAR analyzed existing home sales and pending home sales for the period from 2001 through 2004. For that period, the two sales indices tracked very close to one another with pending home sales lagging 2 months behind existing home sales.

Another shortcoming is that, like all national statistics, the PHSI is of limited usefulness on the local level. To compensate for this defect, it's helpful to look at the relationship between the number of new listing and pending sales in your locale. Analyze the statistics for one month, and then compare this to the statistics for two and three months ago. Your real estate agent can assist you with this.

THE CLOSING: When there are more pending sales than available listings, this indicates a high demand market, and one that is likely to put upward pressure on prices. When there are more listings than pending sales, this indicates a softer market.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

How to Make up to $250K Tax Free Every 2 Years

2007-04-30T15:52:00.001-04:00

Have you ever met a "serial home seller?". They are fascinating people, usually the "handyperson type." They also enjoy bragging about how much tax-free profit they earn buying and selling fix-up houses. Perhaps you're getting the picture.

THE 5 EASY STEPS FOR EARNING $125k TAX-FREE PER YEAR: Virtually every homeowner knows about the Internal Revenue Code 121 principal residence sale tax exemption up to $250,000 (up to $500,000 for a qualified married couple filing jointly). To be eligible for this tax exemption benefit, home sellers must have owned and occupied their principal residence at least 24 of the 60 months before its sale. Millions of home sellers use this tax break each year.

However, few home sellers use this tax exemption to create a repeatable tax-free home sale business every 24 months. Here's how to create your own tax-free home sales business:

(1) Buy a sound, well-located house needing cosmetic fix-up work.

(2) Move in, making it your principal residence for at least 24 months.

(3) Fix up the house, making profitable improvements, which cost less than the market value they add.

(4) Sell the house at a tax-free profit not more than $250,000 ($500,000 for qualified spouses).

(5) Repeat every 24 months.

HOW TO CREATE PROFITABLE HOME IMPROVEMENTS: Years ago, Mark Haroldson wrote the book "Wake Up the Financial Genius in You," which invented the term "forced inflation." The author explained that term means adding more real estate market value than the improvements cost.

Examples of profitable cosmetic improvements include painting (the most profitable home improvement of all, often adding $5 or more of market value for each $1 spent), new light fixtures, fresh landscaping, new carpets and flooring, and adding a second bathroom to a one-bathroom house.

Examples of unprofitable structural improvements (which don't add as much market value as they cost) include new roof, foundation repairs, plumbing replacement, new wiring, siding replacement, and window replacement.

In the classic best-selling real estate book of all-time, the late William Nickerson's "How I Turned $1,000 into $5 Million in Real Estate in My Spare Time" suggested the sound basic formula of spending $1 to add at least $2 in market value by making profitable cosmetic improvements. However, some improvements are obviously necessary, such as a new roof or new wiring, but they won't add as much market value as they cost. Thankfully, other improvements often add $2 or even $3 in market value for each $1 of expense.

Some home improvements are "break-even." Examples include kitchen remodeling and bathroom upgrades. Before undertaking such expensive renovations, consider their influence on the home's ultimate resale value and the home's marketability. Ask yourself "Is this improvement really necessary?"

THE MAJOR DRAWBACK OF BEING A SERIAL HOME SELLER: Just in case you haven't yet figured out the major drawback of repeatedly buying and selling homes approximately every 24 months, it is living in the house while the fix-up work occurs. Marriages have been known to end in divorce while a home is being renovated, especially if the kitchen isn't useable and the family must suffer dining out every night.

A bit of advance planning can pay off. For example, after you purchase a fix-up house, having the upgrading work completed before moving in will avoid the hassles of having workers around. My neighbors took another approach: they spent the summer in Europe while their home was completely remodeled so they could come back to a virtually new renovated home.

THE BONUS ADVANTAGE OF BEING A SERIAL HOME SELLER: Home market value appreciation is a bonus advantage, on top of "forced inflation," of being a serial home seller. In the last 10 years, U.S. homes have enjoyed the greatest market value increase in history. Percentage market value increases vary wildly by community, but houses in most towns have benefited from at least 75 percent increased market value during the last decade.

Historically, houses appreciate about 5 percent annually in market value. But some economically depressed areas have lower or even negative appreciation. Of course, you wouldn't want to become a serial home seller in such a community lacking sound economic conditions.

MISTAKES TO AVOID: If the idea of earning up to $250,000 tax-free (up to $500,000 for a qualified married couple) every two years by purchasing and living in a fixer-upper house appeals to you, there are some pitfalls to avoid:

(1) Avoid buying a house in excellent condition (it lacks fix-up profit potential).

(2) Avoid buying a "tear down" or "scraper" house. If you acquire such a property, be sure you don't pay more than its land value alone. Profiting from such run-down houses is extremely difficult.

(3) Avoid condominiums and townhouses. Even if you find a condo or townhouse needing profitable improvements, there is usually little profit opportunity because the market value is held down by recent sales prices of comparable condos and townhouses in the vicinity. You can fix up your unit to look great, but if the surrounding units are run-down, you won't earn much profit.

(4) Avoid buying a house in a bad location, high crime area, or a poor quality school district. As with any house purchase, these three criteria of home buyers will hold down the resale value of a house no matter how nice you fix it up.

HOW TO FIND PROFITABLE FIXER-UPPERS: The best way to find profitable fixer-upper houses is to work with a savvy buyer's agent who knows the local market. After explaining your criteria, your agent will alert you when a house meeting your standards hits the market, whether it is listed in the local multiple listing service (MLS) or is a "for sale by owner".

Additional sources of profitable fixer-upper houses include foreclosures, probate and bankruptcy properties, and even vacation or second homes. As always, the key to profit success is spotting houses needing profitable improvements. In other words, look for "the right things wrong" if you want to earn up to $250,000 tax-free every 24 months.

Fix Up Work on Your Own Home

2007-04-30T15:51:00.003-04:00

Usually it's worthwhile for a seller to fix-up a home before putting it on the market. Listings that are in move-in condition attract more buyers. The more interest there is in a listing, the more chance a buyer will make a strong offer. Buyers tend to pay more for homes that they can move in to without doing a lot of work.

The prospect of a profitable sale is a strong incentive for some sellers to turn themselves into general contractors, for the short term. This can have a positive result because most buyers have difficulty imagining what a listing might look like if they were to do the refurbishing. There's nothing like showing the finished product to convince buyers that they'll feel at home in your home.

Another reason to consider fixing your home up for sale is that it will make it easier for real estate agents to sell it. Houses that show well are a pleasure for agents to show, so they are shown more often. If your home is a show stopper, word will get around. This can only help bring about a quick and profitable sale.

But beware. A good fix-up for sale job, including a well staged décor, can blind buyers to defects that they will surely discover after they move in. Keep this in mind when you embark on your fix-up for sale endeavors. There's a fine line between making a listing presentable and misrepresenting the condition of the property.

Disclosure laws vary from state to state. Check with your real estate agent or attorney to make sure that you don't violate your disclosure obligations in your effort to show your home in a better light.

One seller figured that his three-bedroom home would sell for a lot more if it had a family room. So, before he listed his home for sale, he converted an area of his basement to a separate room by adding paneled walls and a dropped ceiling with recessed lights. He painted, installed a carpet over the cement floor and moved furniture in to create an inviting setting.

Thanks to the seller's improvements, the house sold for a good price. However, the seller ended up being sued by the buyers because he failed to disclose that the house had a serious drainage problem. The house was located in California where home sellers are required by law to disclose all material facts when they sell.

Not only did this seller fail to disclose the problem, he intentionally led the buyers to believe that the downstairs room was usable living space. However, during the first heavy rain storm after the buyers moved in, the basement flooded. The basement improvements were damaged beyond repair.

Before tackling a major fix-up-for sale project, have your home thoroughly inspected so that you are aware of any serious problems. You may want to make some repairs while you're preparing your home for sale. However, if your renovations conceal rather than correct a problem, make sure the buyers are aware of this before they make an offer.

Sellers often fear that disclosing defects will keep their home from selling. Actually, the opposite is true. Buyers who are aware of defects before they buy usually don't sue the seller after closing. However, when buyers find out after closing that the sellers intentionally concealed a defect, it's a different and often unpleasant story.

It's good to prepare your home for sale in order to show off its potential. But, concealing material defects in the process can get you into trouble.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

Pricing Important... In The Current Real Estate Market

2007-04-30T15:51:00.001-04:00

The number of home sales in July was the third highest ever recorded, according to the National Association of Realtors. But anecdotal evidence suggests that the market is changing. In some areas of the Midwest, home sales have slowed considerably.

It's still a great time to sell provided you have realistic expectations. Interest rates are low, which means that buyers can afford to pay more than they would if rates were to rise significantly.

Here's what home sellers should consider if the market shifts from a strong seller's market to a more sensible balanced market.

You will probably face more competition than you would have if you sold last spring. Other homeowners also think now is a good time to cash in on the phenomenal appreciation that has occurred over the past few years. This doesn't mean it's not a good time to sell. But it does mean that you might not sell with multiple offers, so don't count on extreme overbidding. It could also take longer to sell. You might face more negotiation.

Lately some sellers who waited to hear offers ended up with none on the designated offer date. In most cases, this was due to over-pricing. The listings that are still attracting multiple offers are those that are priced competitively. With all the talk about home prices being over-inflated, it's easy to understand why buyers would have no interest in making offers on overpriced listings.

Sellers who overprice their homes have two options: They can either play the waiting came, or they can reduce their asking price to a level that attracts buyers' interest. It's risky to wait. If the market slows further, you could have to make a much larger price reduction.

Think big when you consider discounting your price. A reduction of less than 5 percent of the purchase price is not likely to have much effect. If you're going to lower your price to ensure a sale, make a meaningful price reduction.

When the inventory of homes for sale increases, buyers have the luxury of being more discriminating. They will also tend to be less forgiving on inspection issues. During a hot seller's market, buyers often agree to purchase listings in their "as is" condition regarding such things as wood pest damage. So if you have the time, you might consider making some repairs before putting your home on the market.

THE CLOSING: Don't waste your time testing the market at an unrealistic price. This market is for serious sellers. There are plenty of serious buyers for listings that are priced for sale at current market value.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

Fixer-Uppers In Today's Market

2007-04-30T15:50:00.001-04:00

There was a time when no one wanted to buy a dilapidated "money pit." That was before the days of high appreciation rates and low inventories of homes for sale. Now fixers are almost as popular as homes that are in move-in condition.

For example, a couple of years ago, a home that was in such bad shape that it wasn't livable sold with nine offers. In fact, the buyers didn't fix up the house for immediate resale. They fixed it up for themselves and lived in it for a couple of years. When they sold, they did recoup their investment, but only because home prices appreciated more than 10 percent the year before they sold. However, they did not sell for significantly more than they invested, much to their disappointment.

Before jumping into a fix-up project, do your homework and be objective about the upside potential of any project you consider. The primary considerations are the price you pay, the cost of improvements, your carrying costs and the expected selling price.

The most difficult part of rehabbing for profit in this market is finding suitable property to buy at the right price. In some areas, low inventories and high prices are causing more buyers to consider buying a less expensive home that needs work. It's hard for an investor to compete with a buyer who plans to fix up the property for himself rather than fix it up to sell for a profit.

The key to success is being able to walk away from a project that doesn't make sense. If you pay too much going in, you'll make less when you sell unless you skimp on renovations or home prices escalate. Don't be too quick to wrap up a deal. Successful real estate investors often make offers on hundreds of candidate properties before finalizing a purchase.

Be realistic about the renovation costs. It's wise to pad the estimates on the high side to cover for unexpected expenses. When renovating an older property, there's always the risk of an unknown defect that will push you over budget.

The best fixer projects are the ones that need only cosmetic improvements. But, these are also the ones that attract buyers who will fix the property up for themselves. These buyers can afford to pay more because they don't need to pay themselves a profit.

Beware of the fixers that no one wants. These might have a serious or incurable defect, like freeway noise, that will limit your upside potential. The buyers in the above example would have realized more from the sale if it weren't for the fact that the property was subject to freeway noise.

Buying fixer-upper properties in this market is risky because of the fact that home prices have experienced extreme appreciation in some areas during the last few years. No one knows for sure where the market and home prices are heading. But, if your buy now and the market slows down and you can't sell quickly for a profit, you'll be looking at higher carrying costs and perhaps a lower price.

THE CLOSING: Keep in mind that your goal is making a profit. It there isn't profit potential, save your money until you find a project that makes sense.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

What's Your Home's Market Value?

2007-04-30T14:33:00.001-04:00

The Internet is a boon to home buyers. Instead of personally visiting listing after listing, you can shortcut the home search process by previewing listings online in the comfort of your own home. The Internet is not as useful, however, when it comes time to decide how much you should pay for a home you'd like to buy.

There are Internet sites that provide information about home sales in an area. This information is often sketchy and occasionally misleading. One home buyer relied on comparable sales information that she obtained online to help her decide what price to offer on a new listing. She asked her real estate agent to include the information with her offer. The seller was miffed when he reviewed the buyer's offer, which was for considerably less than his asking price. The price seemed reasonable to the buyer in light of her Internet sales data.

The problem with the data was that it included sales from an adjacent neighborhood where homes sold for much less. The Internet search was based on ZIP code, which doesn't necessarily provide reliable information about market values in niche neighborhoods.

When the seller countered the offer, he asked his listing agent to include comparable sales information that was appropriate for his home. The buyer accepted the counter, relieved that there weren't multiple offers. If there had been, the seller probably wouldn't even have considered her offer.

The best way to learn the market value of listings in your target area, and to avoid making a costly mistake, is to preview a lot of properties in person. This is a more time consuming but far more productive approach.

Buying a home is a big investment. It's almost impossible to know with certainty whether you're offering too much or too little without intimate local market knowledge. If you rely on inaccurate or insufficient data, you could offer too little and lose a coveted property to another better-informed buyer. Or you could pay too much, which would diminish the return on your investment when you sell.

A good real estate agent can shortcut the learning process by feeding you information about new listings. You should plan to look at every listing that might work for you. Hitting the Sunday open house circuit is a good way to canvass a lot of listings in a short-time frame. Make sure your agent knows what listings you've seen. Ask your agent to let you know when the listings you have seen sell. Some buyers find it useful to keep a file of the listing flyers from the properties they've seen. Mark the selling prices on the flyers and refer back to this information when you're deciding what price to offer. Don't toss the flyers from listings you didn't like. Knowing what these listings sold for will add to your store of knowledge.

Before you make an offer, ask your agent to prepare a Comparative Market Analysis (CMA) for the listing you're considering. Be sure that your agent includes photos of each comparable sale. This will help you remember the listings that you personally previewed. Learning local market value is equally helpful for homeowners who will shortly be sellers. Visiting open houses in your neighborhood is an excellent way to become familiar with home prices in your area. Sellers often depend on their agent to provide a CMA to help them decide on a list price. Although useful, the text data may not paint the whole picture.

Important valuation factors such as natural light, outlooks, the layout of the house and the condition of the adjacent homes may not be apparent from the comparable sales data.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide" Chronicle Books.

Copyright 2005 Dian Hymer

Pre-Offer Considerations

2007-04-30T14:31:00.001-04:00

Home buyers often go through an approach-avoidance dance when preparing to make an offer to buy a home. Buying a home is not only a huge investment for most people, it's also a big commitment.

If you've been renting, you will no longer have the luxury of calling your landlord when the plumbing breaks down or the roof leaks to get the problems fixed.

If you're a repeat home buyer, you're probably already used to the home maintenance drill. But if you're trading up to a larger home, you may be taking on a much bigger responsibility. That can be intimidating.

The first order of business is to sort out your feelings about making the move. Are you ready for the increased responsibilities? If you're not, perhaps you should stay put for now. On the other hand, if you continually find yourself straddling the home buying fence, maybe you need to give yourself a nudge. A fact-finding foray could help you make a prudent decision.

For some people, it's useful to make a wish list of all the features you'd like to have in a home. You should also make note of the things you don't like about your current place. Be sure to check your wish list first when you're on the verge of making an offer.

You could be attracted to a listing because it has been beautifully decorated. But in most cases, you will buy the house without the furniture. Does the house work for you without the decorations? Home buying involves compromises. But don't compromise by accepting features that you know from experience don't work for you.

Ideally, the home you buy should suit your long-term needs. Keep that in mind even if you have friends who recently made a lot of money on a home they bought a short time age. There's no guarantee that appreciation will continue at its recent breakneck pace.

If you're new to home ownership, you may have the impression that home prices only go up. But history shows otherwise. During the early 1990s, after a big run up in prices, home prices dropped in many areas. In some places, it took years for those markets to recover.

Before making an offer, make sure that you're buying in the right location. Recently a buyer found a property to buy that suited her needs perfectly. She made an offer on the property and it was accepted.

However, after a sleepless night, she realized that she could never feel safe living in the neighborhood and she backed out of the contract. Your deposit could be at risk if you back out, depending on how your contract is written. To be on the safe side, spend some time in the neighborhood before you make an offer.

Many buyers in high priced housing markets are opting for potentially risky mortgages in order to be able to buy at all. According to Harvard's Joint Center for Housing Studies 2005 State of the Nation's Housing Report, adjustable-rate mortgages, no-down payment and interest-only mortgages all gained in popularity this year.

Interest-only mortgages now make up one-third of all new home mortgages originated nationally. The percentage is much higher in high cost housing markets like San Francisco and New York City. As with any mortgage, there are advantages and disadvantages.

Make sure you understand the potential risks involved in a mortgage product you're considering by asking your mortgage broker or loan agent to present you with a worst possible case scenario.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

Pre-Construction Investing

2006-11-17T12:26:00.000-05:00

What is Pre-Construction Investing? Quite simply, pre-construction real estate investing is when you purchase a condo, townhouse, or single family residence before it is completely built. In fact, many of these investments begin when there is nothing more than a sketch of the final property.

This provides multiple opportunities for you. First, it provides an opportunity to buy at a preconstruction discount relative to fair market value so a real estate developer can obtain financing on their preconstruction project.

Second, it provides an opportunity to get appreciation in the property even though you don't even own it yet. Sometimes, you can get as much as 12 months of appreciation while only putting $1,000 down!

Third, is that you may have the opportunity to enter into a great cash-flowing property, with a lot of equity, if you know what to look for when searching for deals! Michigan Listing.com

First Impressions Key To Sales

2006-11-17T12:25:00.000-05:00

One of the first things you should do if you're thinking about selling is to walk through your home and examine it with a critical eye. Imagine yourself as a buyer and force yourself to make mental note of all the imperfections you've ignored for years.

Don't be surprised if you're overwhelmed by what you see. The drapes may be faded and frayed from years of sun exposure. If you have children or pets, the interior doors and baseboards may be nicked and need paint. Your furniture might be outdated and the floors might look worn. It may strike you that the place needs so much work that you ought to just move out, slap on a fresh coat of paint, redo the floors and sell the house vacant.

Painting and floor refurbishing are good ideas. Renewing the interior surfaces of your home when you sell is one of the most cost-effective improvements you can make to increase your net proceeds. Buyers usually pay more for homes that are in move-in condition.

However, selling a vacant home could result in a lower net return. The main reason for this is that first impressions play a big part in selling homes. When buyers walk into a home that looks bright, inviting and comfortable, they feel good. When most buyers walk into a vacant home, they feel that something is missing.

Many people have a hard time imagining what a vacant home will look like when it's furnished. For these buyers, a vacant house poses a problem. They walk into an empty living room and start worrying about how they'd furnish it. It can be a threatening experience.

Home buying is stressful enough without having to worry about how the floor plan works and which room is used for what. A strategically furnished house creates a more pleasurable viewing experience and reduces the stress of buying.

Granted some buyers, such as architects and designers, have the ability to conceptualize in three-dimension. Some experienced buyers have moved so many times that they've developed the knack of visualizing their furniture in an empty space. But, you are likely to sell your home for more money if you can appeal to the entire pool of prospective buyers, not just those who have a particular expertise.

You can certainly sell your home vacant. Virtually everything sells at a price. The question is how much more could you sell your home for if it was attractively furnished?

The cost of staging your home for sale may seem prohibitive, but it needn't be. Many sellers who stage their homes for sale use their own furniture after removing outdated pieces and rearranging the rest.

Tattered draperies can be removed and often don't need to be replaced, unless they cover an unsightly or distracting outlook. For selling purposes, it's important to let in as much light as possible.

It's a good idea to consult with a decorator who specializes in staging homes for sale. A stager can arrange to bring in furniture if you decide that's what you need. To keep costs down, you may be able to create an inviting ambiance without furnishing your entire house or condo.

The living and dining room, kitchen, family room and master bedroom are the most important places to concentrate your staging efforts.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

How to Determine Market Value

2006-11-17T12:24:00.001-05:00

Over Pricing Can Be Risky

2006-11-17T12:24:00.000-05:00

Before the torrid real estate market of recent years, a common pricing strategy was to list your home for between 2.5 to 5 percent more than the expected sale price. This way, you would have room to negotiate with the buyer.

If you used this approach today, you'd be lucky to receive any offers. Recently, listings that were priced at or under market value received offer--sometimes multiple offers. Over-priced listings sat on the market unsold.

One risk of pricing too high for the market is that you won't receive offers. Sellers often find this hard to believe. Why won't buyers just make an offer if they think a listing is priced too high? The answer is two-fold.

First of all, if a listing is priced too high in a market where well-priced listings are selling, this may indicate that the seller has unrealistic expectations. Making an offer involves a big emotional commitment and it takes a lot of time. Most buyers don't want to waste their time offering on a listing that's over-priced for the market, particularly when there are other listings to choose from.

Secondly, even though buyers might prefer to buy without competition, the fact that a listing is popular is a stamp of approval. A property that is in high-demand is one that is likely to have good resale value.

Another risk of over-pricing is that you could end up in downward price spiral. Here's how this can happen: You bring your home on the market listed at a price that you're sure is right. After all, your home is better--in your estimation--than anything else on the market. Your agent cautions against this, but you're intent on getting your price. After a month or two, you aren't even getting a nibble from an interested buyer. Even so, other listings similar to yours are coming on the market and selling. In fact, buyer's agents are using your over-priced listing to help them sell the well-priced listings that come on the market.

The longer your home stays on the market unsold, the bigger the risk that it will develop a negative stigma. Your home becomes the white elephant on the market. Buyers wonder if there's something wrong with the property. In most cases, the only thing wrong is the price.

So, you reluctantly agree to lower the price. Your efforts could be fruitless if you reduce too little, too late. Meanwhile, more well-priced listings come on the market and sell.

If the market softens, as it has in many areas around the country, you might have to make further price reductions. Buyers tend to gravitate to the newer listings, not the ones that have been on the market for months. You'll have to offer a cut-rate price to be competitive.

It's difficult for sellers to be objective about the value of their home. Although most sellers estimate high, some sellers, who can't believe how much their home has appreciated, underestimate the value. For best results, rely on a real estate professional for a realistic price assessment. The dynamic is changing in many real estate markets around the country. Sellers, in many cases, are no longer in the driver's seat. Keep this in mind when you select a list price for your home.

Comparable sales from a few months ago may be out of date for the current market. Even though your neighbor's home sold for an exceptional price, it may have been the only game in town at the time.

Today, you're much more likely to find competition from other sellers who want to cash in on the recent extraordinary home price appreciation.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

Why Isn't My Home Selling?

2006-11-17T12:23:00.000-05:00

Let's say your neighbor's house sold in about 15 minutes for way over the asking price. His house had a bit of a view and yours has none. But your house seems fairly priced, the inventory is low and yet your home is unsold. Why isn't your home selling when others are?

If you're selling in what you hear is a sizzling market, it's easy to lull yourself into false expectations. Are all home sellers in your area really selling their homes in a flash? Probably not.

It's hard to decipher what's really going on. Real estate is a hot topic of conversation. Neighborhood gossip is prone to exaggeration. Two offers can turn into five as news of a new sale travels through the rumor mill.

To find out what really is going on requires a fact-finding foray that's best done with the help of your listing agent. Ask your agent to provide you with a list of all the homes in your price range that were listed around the time your home went on the market, and all those that have come on the market since then.

How many of these listings are pending or sold? How long did they take to sell? This data is easily retrievable from the Multiple Listing Service (MLS). Then find out if the pending and sold listings received multiple offers, or only one? This information isn't readily available from the MLS, so your agent will have to ask other listing agents for the information.

The next step is to compare the list price and amenities of your home with the listings that sold. If you see a big discrepancy between your price and your competitor's prices, and you're on the high side, the answer to why you're home isn't selling is simple. Your asking price is too high for the market.

This fact may be hard to accept, particularly if you thought you'd priced your house right for the market to begin with. However, the market is dynamic, not static. As market factors change, so will the value of your home.

Increased inventory, which we're starting to see in some markets, can account for a slow down in the time it takes for listings to sell. If you selected a list price based on comparable sales from a few months ago, when there was a shortage of homes for sale relative to buyer demand, those sale prices may be higher than you can expect given current market conditions.

After analyzing the factual data, you may find that your price isn't out of line for the market. In this case, you should re-evaluate your marketing plan to make sure that it provides full exposure to the market. It you find that your agent isn't making your listing a priority let her know what you expect.

Also, ask your agent to talk with the buyer's agents who have shown your home. This will give you valuable feedback regarding why their buyers turned your home down. It may be because of a fixable condition that you can do something about, like a garish paint color or pet odor.

THE CLOSING: If the common theme is that there's something about your home that buyers can't live with, like traffic noise or no yard, you should seriously consider reducing your list price. Everything sells at the right price.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2005 Dian Hymer

Unlisted Homes Come at a Price

2006-11-17T12:22:00.000-05:00

Looking for a home to buy can be fun. It can also be tedious and discouraging if you're trying to buy in a market where there are very few homes for sale.

Some buyers will go to extraordinary lengths to find a home to buy when the listing inventory is low. Recently a buyer asked his agent to contact homeowners in the area where he wanted to live. Even though there weren't any homes for sale in the area, the buyer hoped his agent could convince someone to sell.

The agent's efforts did turn up a prospect. The buyer ended up buying the property. But it took weeks to negotiate the contract, and the buyer paid a premium price. As is often the case with unlisted properties, this owner was willing to sell, but only if he received a price he couldn't refuse.

Many issues come into play when you consider buying a home that's not on the market. A major factor is whether or not the property is really for sale. You could waste a lot of time and energy trying to talk a homeowner into giving up his home when he has no pressing reason to sell, even if at a profit.

The price issue is a concern for both the buyer and seller. When a home is listed on the open market, it's easier to gauge its market value. If buyers are clamoring to buy the listing, the property will probably sell for the asking price, or more. A listing that has been sitting on the market for months may be priced too high for the market.

It's harder to determine the market value of a property that hasn't had the benefit of market exposure. One option is to have the property appraised. However, appraisals, which are done without the aid of market exposure, often don't reflect real market values.

One homeowner had his home appraised for a refinance shortly before selling the property. The property sold for much less than the appraised value. Refinance appraisals can also come in on the low side.

If you buy a property that hasn't been marketed, you will never know if you paid too much. Likewise, the seller will never know if he could have sold for more.

Expired listings can offer opportunities for buyers who are having trouble finding a home to buy. An expired listing is a property that was listed for sale, but that didn't sell during the listing period. Sellers of expired listings can lose interest and give up when their home doesn't sell during the listing period. They may decide to wait for a different market, or they may shop for a different agent. In any case, these sellers are often anxious to sell.

Several years ago, a couple was having difficulty finding a place to buy. Their agent remembered an expired listing that she thought would work well for her clients. She contacted the owner who was indeed willing to sell. The seller was just giving the listing a break before putting it back on the market.

Before you buy an expired listing, find out why it didn't sell. It may have been priced too high for the market. Or, the market could have been soft. Study the comparable sales information before deciding what price to pay.

Consider hiring a local real estate agent or real estate attorney to make sure that you're interests are represented, and that all disclosure requirements are complied with. Have the property thoroughly inspected even if you think you're getting a great deal.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Copyright 2003 Dian Hymer

10 Questions to Ask Before You List Your Property!

2006-10-26T10:59:00.000-04:00

Below are 10 simple but very important questions to ask any agent or broker trying to list your home or property.

Make sure to ask an agent these 10 questions BEFORE you list your home or property!

_____________________________________________________

Do they have Caps (Limits) on their Commissions?
Michigan Listing.com Full-Service and Full-Service Plus listings do... If they don't, you're simply paying too much to sell your property in Michigan!
Do they include Virtual Tours for all of their Listings?
Michigan Listing.com does... Virtual Tours are a must when marketing your home online. Our Full-Service programs include a 3-6 scene virtual tour, standard with every Full-Service and Full-Service Plus listing!
Will your Listing be a "Showcase Listing" on Realtor.com?
All Michigan Listing.com Full-Service and Full-Service Plus listings do... A "Showcase" listing includes scrolling text, enhanced (5 additional picture) photo layout, additional text description, links to Virtual Tours and more! It's a must have in online marketing!
Do they offer "Sell By Owner" options?
Michigan Listing.com does... See the EZ-Listing! We are the only Full-Service real estate company offering you the option to "Sell By Owner" and save even more!

This is a better alternative to selling "For Sale By Owner".
Will your Listing be in the monthly "Real Estate Book"?
Michigan Listing.com does... See our Full-Service Plus program. This full-color glossy marketing book, seen in hundreds of Michigan locations, offers real estate marketing unlike any other! If they don't advertise here, your home or land is not being properly marketed!

Check out the Real Estate Book
Are you a Real Estate Broker - or just another Agent?
Michigan Listing.com associates are Brokers & Realtors... Compare an intern to a specialist, someone who has gone the extra mile in their real estate career. There are no part-timers at Michigan Listing.com!

Check your agent at the State of Michigan Licensing Board!
Do they pay Selling Brokers 3% or something less?
Michigan Listing.com does... This is a MUST!

It is very important to insure your listing is shown by other Brokers. Paying less than a 3% co-op selling commission will make your listing less-desirable for other agents to show. A typical 6% sales commission pays the Listing Broker 3% and whomever sells the property a 3% (co-op) commission. We offer the best of both worlds; we don't charge 6% but we offer 3% to a Buyer's Agent!

Fewer Showings = Fewer Buyers!
Do they have a Toll Free office number?
Michigan Listing.com does! This is very important to out-of-town agents and buyers looking to re-locate to your area! Our Toll Free number is (877) 837-8813
How long have they been selling Real Estate?
Michigan Listing.com is a new company - open since 2004...

Our Broker and founder has been selling real estate in Michigan nearly 12 Years! Find out why this knowledge could make a huge difference in your sale! Compare us to other companies!
Do they offer Three Programs to choose from - or just one?
Michigan Listing.com offers three unique programs... Compare Us to the others! Nobody else can compete - or offer you so much!

The EZ-Listing - A better alternative to "For Sale By Owner"

The Full Service program coordinates all the confusing elements to make things easy! Virtual Tours, "Showcase Listing" on Realtor.com and more - with commission caps to help you either save more money or price your home more competitively! Our most popular plan provides professional real estate services from "Contract to Closing"

The Full-Service Plus program combines Full-Service marketing with commission caps, so you don't have to pay more just because your home will sell for more! Start Today!

Postpone Buying in a Slow Market?

2006-10-26T10:40:00.000-04:00

The word is out that the home sale market has changed. Interest rates are rising and, in some areas, homes are selling at a slower pace than they were a year ago. So buyers are finally gaining an edge. And this could be a good time to buy before rates rise further.

An increasing number of homeowners are convinced that now is a good time to sell, so the inventory of homes for sale is increasing. Why are more sellers willing to sell? They fear that the change in the market might lead to lower home prices going forward. Does this mean that you should postpone buying to see if they're right?

No one knows for sure whether home prices will decrease from recent highs, remain relatively unchanged or continue to rise but at a lower pace as interest rates rise. There's risk if you buy now and there's risk if you don't.

If you postpone your purchase and prices rise along with interest rates, you will pay more than you would today. In a flat market, you could also pay more by waiting if interest rates rise thereby decreasing your purchasing power. However, if you buy now and prices fall, you could lose money if you have to sell before the market cycles upwards again.

At the end of the 1990s, a Michigan couple regretted not buying earlier. They postponed a home purchase for a year so that they could save money to make a larger down payment. In the year they waited, home prices increased so much that the additional cash they saved had no effect on their ratio of down payment to purchase price. As fate would have it, they bought when the market peaked. If they'd bought a year earlier, they would have paid less and would have earned appreciation.

They stayed in the home for about seven years, during which time they remodeled to make the house suitable for their growing family. When they outgrew the home, they sold and moved to a more affluent neighborhood with a better school system.

Even though they'd spent money improving their home, they didn't realize a significant profit when they sold. Home prices declined after they bought and were just starting to recover when they sold.

Would this couple have been better off if they'd continued renting? Not in their estimation. They enjoyed many happy years living in a home of their own. They were freed of the stress of having to find another rental at an inopportune time. They were free to modify their home at will. They also realized tax benefits and built equity by diligently paying down their mortgage. More importantly, they realized significant appreciation almost immediately on their new, more expensive home.

Over the long term, home prices in this country have tended to rise. But, they do fluctuate over time. It's impossible to time the market. Still, you won't realize any appreciation unless you're a property owner.

We're coming out of a period of extreme appreciation. In many areas of the country homeowners who bought two to three years ago and then sold did very well. But, this is not the norm. Your home purchase decision should not be based on the anticipation of continued appreciation at the recent rate. And, in most cases, it's not a good idea to buy for the short-term.

Even though the market has slowed and appears to be heading towards a more sensible, balanced market, you may encounter competition for well-located, well-priced listings. But, where inventories are rising, you can expect to have more selection and more opportunity to negotiate with the seller - either on the price or on concessions for defects.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books

Copyright 2005 Dian Hymer