What you need to know when hiring a real estate agent in Michigan?

First and foremost, not all real estate agents are equal. If you hire a bad one then you run the risk of having a bad experience, losing prime market time to sell your home, and can even harm your pocket book. Therefore when you are considering selling or purchasing a property it is wise to interview at least three real estate agents.

Think of it as a job interviewer tying to find the right candidate for the position. After all if you needed brain surgery would you ever consider hiring a plumber for the job? Probably not but the point is you have a goal and there are specialists which can provide you with a pleasant real estate experience. Therefore the interviews are crucial for comparing the agent’s marketing strategies and to determine which agent is the best fit for your selling or purchasing goals. Likewise, a seller’s agent should be assessing the condition of your home, analyzing market trends and making recommendations on how the home would show more effectively if certain things were done. Keep in mind, unless you have prepaid a brokerage for flat fee services, the agent and/or brokerage typically will incur expenses to market your home in anticipation that while under contract it will sell. Therefore a good agent will be hesitant to take a listing which is overpriced or one which will not show well. Doing so would be a disservice to you because if your home is overpriced or if your home smells chances are that in a buyer’s market it won’t sell.

Since your interviewing agents for a service it might help to know that in Michigan there are various agency relationships: buyers agent; sellers agent; dual agent and transaction coordinator. The role of each agency relationship determines whos interest will be represented. In an abridged explanation:
· A seller’s agent has a fiduciary responsibility to act solely on behalf of the seller.
· A buyer’s agent has a fiduciary responsibility to act solely on behalf of the buyer.
· A dual agent has a fiduciary responsibility to both the seller and the buyer. A dual agent is required to disclose this fact and to obtain informed consent from both the seller and the buyer.
· A transaction coordinator DOES NOT have a fiduciary responsibility as they are not acting as an agent of either the seller or the buyer. They are only providing services to complete a real estate transaction.

As a baseline, here are some questions which might help you get started in comparing real estate agents:

Questions for Both Buyer & Seller Agents:
How long have you been in the real estate business? (If they have been in the business less then a year, then what type of supervision and/or mentoring have they underwent through their brokerage? In other words, can their lack of experience be compensated by the support of their brokerage’s supervision? Although inexperienced, a new real estate agent may have more time to devote to a new listing and may be eager to prove themselves.)
Are you a full time or a part time agent and how many hours per week do you devote to being an agent?
Are you a real estate sales associate or a REALTOR?
What separates you from your competition?
Why should I hire you?
After obtaining your 40 hours of pre-licensing and the continuing education which Michigan requires what have you done to advance your real estate education?
Do you practice dual agency?
How often and how will you communicate with me?
What does your brokerage have to offer and what its reputation?
Can you provide me with references?
If I am ever dissatisfied with the service I am receiving what are my options?
What haven’t I asked you that I need to know?

Questions specific for Seller Agents:
What is your marketing plan? (Direct mail campaign, online campaign, and print media campaign)
What multiple listing services do you post and/or data share my listing with?
Do you have any samples of your flyers and direct mails pieces?
What separates you from your competition?
On average how quickly do your listings sell?
How many listings do you currently have?
What is your average list price to sale price?

Questions specific for Buyer’s Agents:
How will you find my new home?
How many homes will you show me?
How will you present my offer?
How many buyers are you currently working with?
What is your average offer to acceptance ratio?
What is your average savings on list price to sale price of accepted offers?
What is your default rate on offers which were rejected or didn’t make it to closing?

Not all agents are equal, so compare and find the one which best meets your expectations and goals.

Tips For Selling Your Home!

In case no one has ever told you, when selling a home your personal domain is suddenly transformed into a product to be marketed. Therefore putting your best foot forward is the ideal way to make a good first impression.The first impression begins from the view of the street, aka streetscape. To evaluate your home objectively put yourself within the mindset of potential buyers. What will they see when they drive by your home? Does the lawn appear to be manicured and is the landscaping inviting?Looking from the exterior of the property how does the following appear?

Does the exterior of the home need to be powerwashed or painted?
Is there any cracked or broken windows?
Is the mailbox, the door locks, number plates, or other hardware in need of shining or replacement?
Are the landscape lights and exterior lights working properly?
Is there broken flower pots, lawn ornaments, or yard debris which should be removed?
Are the sidewalks free of yard clippings and dirt?
Is the lawn edged?
Are the hedges trimmed and are the flowerbeds/gardens free of weeds?
During winter months, is the snow removed from driveways and sidewalks?
Do any of the downspouts need to be extended to move water away from the foundation of the home?
Are the gutters clean and free of growing vegetation?
Do the home's windows sparkle?
Do any of the home's storm windows or screens need to be replaced?
Does the garage door open easily?
Is the garage organized, clean and orderly?
Is the home's entry welcoming and inviting?
Is there a clean and well maintained floor mat on the front entry?
What does the interior of the home reflect?
Does the entry way welcome visitors?
Keep in mind that buyers relate general cleanliness to how well your home is maintained.
Remove clutter
Clean, vacuum and dust
Arrange furniture so rooms appear spacious with easy clearance to doorways, closets, etc.
Remove unneeded items and furniture to give the room a more spacious appeal.
Clean carpets and wax floors
Store personal items.
Prior to putting your home on the market, remove any items you do not want sold with the home.
Lock and store all firearms out of site and out of the reach of children.
Remove and store clothing in over-crowded closets.
Arrange front hall closets and bedroom closets to exhibit adequate storage.
Ensure hallways and stairwells have an open appearance and are clutter free.
Remove all unnecessary appliances and decorations to ensure clutter free workspace within the kitchen.
Clean appliance inside and out.
Remove trash from the home.
Organize kitchen cabinets to exhibit adequate storage.
Clean the shower, tub and tiles in the bathroom
If needed, re-grout and caulk in the bathroom.
Shine sink facets and basins.
Clean toilet.
Repair leaking faucets and running toilets.
Through out the home repair or replace loose doorknobs, sticking drawers, warped cabinet doors, loose stairbanisters, and oil hinges on squeeky doors.
Replace light bulbs and faulty switches.
Remove extension cords.
Remove cobwebs and organize storage.
Ensure furnance, water heater and electric boxes are easy to access.
Use a dehumidifer in the basement.
Homes should be well ventilated and hopefully odor free.
If your home has pet odors, then please keep the liter box clean and clean the carpets. If after cleaning the carpets the odor persists consider contacting your real estate agent to discuss the odor problems and options available to you.

Best wishes in your home selling ventures!

Why Hire a Home Stager?

Staging works! It is important especially when you place a “For Sale” sign in your yard because, at that percise moment, your home is no longer a home it is a product on the market. As in any product on the market, the presentation and packaging of your home is crucial to how consumers will react to it.

Your home must appeal to both real estate agents and their clients. Keep in mind buyers want a clean home with light, bright rooms. Therefore you want your rooms to look spacious, clean and uncluttered.

Bottom line the reasons you should hire a home stager are because:
1) Staging is a marketing tool.
2) It is setting your home’s best foot forward and there is rarely a second opportunity to make a good first impression.
3) A properly staged home helps potential clients visualize living in their new home.
4) According to the Accredited Staging Professional’s (ASP) survey staging a home can increase the price a home sells for.

For a list of accredited staging professional’s serving the Washtenaw County area please call me at: (734) 262-3730.

Is purchasing a HUD home right for YOU?

Let’s start by defining what A HUD home is: when a homeowner defaults on their FHA insured mortgage, after certain criteria as established by statute has been met, the lender can foreclose on the home. After foreclosure the home’s ownership is transferred to the Housing Urban Development department, aka HUD. Then HUD attempts to sell the home for the current appraised fair market value.

HUD homes are sold on a bidding process in “AS IS” condition without a warranty deed. (This means if repairs are needed then the buyer is responsible for them.) The bidding process is opened first to individuals who plan to own and occupy the dwelling. After a specific period of time, if none of the owner occupied bids are accepted then the bidding is opened to investors. The electronic bids are submitted daily during HUD’s specified hours. The nature of the bidding process is entirely different then a traditional real estate offer and negotiation process. In this electronic bidding process, if a bid is selected by HUD then it is crucial to ensure all bidding process requirements, timelines, and responses are adhered to. HUD doesn’t babysit it’s accepted bids so if HUD requests information or if a deadline is missed the deal will fall through and the property will remain up for auction.

It might help to know when a house becomes a HUD home there is an appraisal conducted to assess the fair market value; and if there are any signs whatsoever of mildew or mold there will be a mold warning associated with the home. They are not required to test the mold or to provide documentation as to the type of mold. They are only required to disclose it’s presence within the dwelling. Therefore if mold remediation is necessary it would be at the expense of the buyer.

Before bidding it is wise to conduct due diligence on the home and to preview it with your agent. You will also need to provide the HUD approved broker/real estate agent with either: a lender pre-approval letter or proof of funds which are greater then your bid. Here are some helpful tips based on Federal Housing Administration guidelines which may help determine which HUD homes you want to consider and which may present a challenge in securing funds from a lender. They are as follows:

1) IN or Insured: means the home is eligible for FHA 203(b) loans and the home is in fairly good condition.
2) IE or Insurable with Escrow: this means the home is eligible for FHA financing but there is up to $5,000 worth of repairs needed. These repairs must be completed after the escrow closes on the home.
3) UN or Uninsured: these homes need extensive repairs and only qualify for conventional, cash and in some instances may be eligible for a FHA 203(k) loan. (Please note: not all of the extensive repairs may be eligible for the FHA 203(k) loan but a mortgage lender should be able to provide you with some options.)

In addition, there is a HUD program which is called the “Good Neighbor Initiative”. This program is specifically available for: police officers, teachers, firefighters, emergency medical technicians, nonprofits and local governments. Although it is a wonderful program for those who qualify, it is only available on a small percentage of homes sold through HUD because it is contingent on the property being located within a specific, designated area. To learn more about the Good Neighbor Initiative program please visit: http://www.hud.gov/offices/hsg/sfh/reo/goodn/main.cfm


To research how to purchase US government homes please visit: http://www.homesales.gov/homesales/HowToBuy.jsp
To view what homes are available in Michigan go to: http://www.homesales.gov/homesales/mainAction.do

Let me know if there is a property you would like additional information on or if you would like to place an electronic bid.

Does The Michigan Housing Market Have You Turned Upside Down?

Within the past year I have been contacted by people who are evaluating their financial options. Since their homes are often their largest asset many of them are looking at ways they can either reduce their monthly payments or tap into their equity. Unfortunately in some cases, their housing values have declined and increases in their adjustable rate mortgages have pushed their monthly mortgage payments higher then they can afford. Therefore it is not uncommon for them to attempt to sell their homes before they lose it to a foreclosure. Coincidentally it is also not uncommon to watch these same homeowners bring thousands of dollars to the closing table just so they can get out from under their debt load.

Having shared the bad news, the good news is given the increase of residential housing inventory, a prudent buyer can often make up their selling losses in the purchase of their new home. It is for this reason I wanted to share some general information with you.

First, regardless of what a lending institution might qualify you for be realistic with yourself. Seriously evaluate if you can afford a house and still have funds to live on.

Second, it is wise to attempt to put a larger down deposit down and build equity by paying a little extra each month on the principal balance.

Third, to avoid mortgage payment increases and the risk of declining housing values, seriously consider obtaining a fixed rate mortgage. If you have ever had credit problems or if your debt load is high, then your gambling with your future if you take out an interest only or adjustable rate mortgage. Therefore know your risks before proceeding.

Fourth, do your homework! There are some wonderful consumer sites which can help seperate the sales pitches from your mortgage options. Therefore don't be fooled, instead be informed. To start check out the FDIC Mortgage Shopping Worksheet.

In addition, if you or someone you know has a low to moderate income then you might be eligible for down deposit assistance programs. Call me at (734) 262-3730 and I will provide you with additional information.

How To Address The Impacts of the Housing Market

In Michigan, just about every day, an article surfaces on the increased number of homes on the residential real estate market in Michigan, the significant number of mortgage defaults, and the status of Michigan's economy. Is it any wonder there has been an impact on consumer confidence and that fear of the unknown has spread like a wild fire?

Since each of us have the potential to either contribute to the problem or the solution, I have deceided to ask you, how do you think we could address the impact of Michigan's housing market and it's ripple effect on Michigan's economy?