Summer is here! Its hot outside and the real estate market is booming. In Michigan, More homes are sold in the months of April through August than the rest of the year combined. What I like to call Seller Season has arrived.
There are plenty of people that fall in love with a home during these months. The scene is so perfect. Birds chirping, flowers blooming, then the inside of the house has hardwood floors an open floor plan, stainless steel appliances and marble counters. You want the house! You tell your agent to put in an offer!
7 other people felt the exact same way. BEST AND FINAL DUE AT 5PM
These market conditions where there are more qualified buyers wanting to purchase than there are owners willing to Sell creates an uptick in price for the good homes. That doesn’t always mean you have to offer more money to get the house of your dreams.
Offers are comprised of 3 components.
1.) Price – This is the amount you are willing to pay for your home. Most feel this is the most important number. Bid too low, you’re eliminated, bid too high and you may find yourself losing out on financing to a low appraisal or worse stuck making up the difference you overbid in cash.
2.) Terms – The other words on the page of that purchase agreement you signed mean things too. Things like the closing date, your Earnest Money Deposit, Inspection Periods, etc. Have your agent explain these terms to you and decide what works best for your situation. Terms also include contingencies. Contingencies are non-negotiable terms that will stop the deal if they are not met satisfactorily. The most common examples are the Home Inspection and obtaining Financing.
3) Conditions – Sometimes a home needs work. There are things that you ask the Seller to take care of before you purchase their home or you will not buy it. Maybe you ask them to fix a hole in the floor, or paint the cieling. Perhaps you need some help covering your closing costs. All of these things. These are conditions.
MAKE THE OFFER! You miss 100% of the shots you don’t take. It is important to submit the right combination of these 3 components. So let’s do one. using some simple numbers.
You and Sally, your agent, pull up to a house that’s priced at $200,000. Its Perfect on the outside. Nice clean streets, great curb appeal, and its in the top school district in the state. Inside The kitchen is nice but the sink has not been installed. The basement is finished. It has 4 bedrooms and 2 Full bathrooms.
Sally tells you Homes in the area have been selling in the range of 200,000-215,000 for homes with 4 bedrooms 2 bathrooms and no finished basement. You find out through public sales records the Seller purchased their home 7 years ago for 150,000. Using these facts. How do we beat out 7 other offers on the home? You’re lender has approved you for $220,000. You tell Sally do what it takes to get it done.
In this case, Sally must consider the seller’s bottom line when structuring the 3 components of her deal.
The Price is Fair. Comparable sales have shown homes like this have sold for more than what the Sellers are asking and although there are flaws(no sink in the kitchen) This home has improvements (a finished basement) over past sales in the area. Sally says to offer 210,000 because she finds out the seller’s refinanced their home 2 years ago and owe more money than they paid. Keep in mind Sellers have Closing Costs too. Your financing requires a 20% down payment. Higher Down Payments make your offer attractive to the Seller, because you’re financing is less likely to fall apart. Finally, Sally concludes We can close this deal in 30 days, which is important to the sellers. They priced the home below market value to move quickly.
To win the bidding war, its best to find out what the Seller wants and offer it to them. During this season, I strongly discourage “low-balling” a home. A strong agent will ask the right questions and research the home’s history before recommending the best price, terms and conditions.
Right Now, reliable transportation and public transit are big topics in the Motor city. The Q-Line is fully operational and shuttling pasengers from Downtown to Midtown and almost to the destinations they actually desire to travel. The Livernois Median project developed a new type of left turn to master. The people mover is tried and true. The Old Reliable personal vehicle still remains our best option for travel in The D but how efficiently we move around is based on the knowledge of the native Detroiter. The questions that need answering by tourists and young professionals from other states can only be gathered from one reliable source of intel.
It has become a community all its own.
Its a cultural hub for learning, as much as it is a photo album for your High school Prom.
Every So often it produces gems, like this public post that has been shared 7,000 times [at publishing] by Paid in Full Darrien AKA Darrien Brysob. It answers all the Californian quests for M-10 and the like.
Please enjoy this Facebook status for its full facetious yet authentic nature.
Detroit Driving Tips
1. First, you must learn to pronounce the city name. It’s Di-TROIT. NOT DEE-troit. If you pronounce it DEE-Troit then we will assume you are from Toledo. You might be punched.
2. Forget the traffic rules you learned elsewhere. Detroit has its own version of traffic rules… Prayer is the key. Faith unlocks the door. So does your remote. .
3. The morning rush hour is from 6:00am to 10:00am. The evening rush hour is from 3:00pm to 7:00pm. Friday’s rush hour starts Thursday morning. Weekends are open game.
4. If you actually stop at a yellow light, you will be rear-ended, and possibly shot. If you’re first off the starting line when the light turns green, count to five before going. This will avoid getting in the way of cross-traffic who just ran their yellow light to keep from getting shot.
5. Schoenherr can only be properly pronounced by a native of the Detroit metro area. That goes for Gratiot too. And yes, most people will say “LaSHer.” That’s hood.
6. Construction and renovation on I-94, I-96, I-75, I-275, I-375, The Lodge and Southfield freeways are a way of life. Just deal with it. There are three seasons in Detroit; winter, Michigan Football and construction.
7. If someone actually has their turn signal on, it is probably a factory defect or they are from out of town.
8. All old men with white hair wearing a hat have total right-of-way.
9. The minimum acceptable speed on I-696 is 85 regardless of the posted speeds. Anything less is considered downright sissy. Don’t even think of allowing more than one car length between cars. You might get punched.
10. That attractive wrought iron on the windows and doors in Detroit is not ornamental. DO NOT get out of your car. You might get punched.
11. Never stare at the driver of the car with the bumper sticker that says “Keep honking, I’m reloading.” You might get SHOT.
12. If you are in the left lane, and only going 70 in a 60 mph zone, people are not waving because they are so friendly in Detroit. I would suggest you duck. You might get SHOT – again.
13. I-275 / I-696 is our daily version of NASCAR.
14. It’s not M-10, it’s “The Lodge”.
15. That’s not a lake, it’s a pothole.
16. If someone tells you it’s on Outer Drive, you better have a map.
17. The left turn is simple. If you want to turn left, go a 1/4 of a mile past your turn, get to the left, then make a left, then make a right. Now you have gone left.
18. The “D” hat is universally feared, revered and respected all across ” ‘merica” and on cruise ships. Disrespect if you wish. You might get punched.
19. Ohio State troopers are not of this world. We come against them NOW!
6 mile turns into McNichols 8 mile turns into Baseline and Vernier at opposite ends 15 mile turns into Maple. 16 mile turns into Big Beaver and becomes Metro Parkway, then Quarton, somewhere along the way. 17 mile turns into Wattles 18 mile turns into Long Lake 19 mile turns into Square Lake 20 mile turns into Hall Road and then Highland Rd., before it becomes M-59 (*and William P Rosso HWY at the very end) Main street starts as “Main Street” and turns into Livernois for no apparent reason. If someone tells you to take “75 South to Detroit” make sure you merge onto 375 or you’ll end up in Toledo.
*As a REALTOR® to many airmen I could not leave out, M-59 turns into the road to Selfridge ANGB in Harrison Township.
So in this hot Seller’s Market we call spring, Buyer’s have a particular challenge finding a home. It’s not entirely their fault. HGTV has simplified the home buying process to a half hour round robin elimination. The format of looking at three homes and choosing the best one is a dream for agents and buyers alike. In the real world we are at the mercy of rules and regulations. The production value and drama hold no place in the land of real estate.
These shows often skip the most valuable information about the process. Luckily you all have me to give you the tools of success.
Step 1: Find a good Realtor®
Not only will they simplify the process for you but they are valuable resources come negotiation time and could save you from financial headache.
Step 2: Get Financed
99% of you are not paying cash for your house. There’s a mortgage lender waiting for your call. That lender will break sdown the numbers and let your realtor know how much house you can afford. Its better to only visit homes you have confidence in purchasing.
Step 3: Viewing Homes
This is the fun part. You get to Zillow and Trulia and pik out all your favorite finishes and check out the cool features in the finished basement and imagine cooking Thanksgiving dinner in your new kitchen and the kids playing in the backyard and whatever else you have dreamed of over a lifetime of realized dream.
Step 4: Making the Offer
Once you’ve found that HGTV gem dream home it’s time to make it yours. Rely on the professionals to give you a range of similar homes that have sold in the area. Make your decision based on the facts. The Realtor® you’ve hired will do their job and offer you the best advice.
Step 5: Inspection
After your offer is accepted, you need to check the house for bugs. The government is watching. I’m kidding. Your inspection is to make sure the house you’re buying is in livable condition. A good home inspector checks the house in three phases. Main Floor, Roof and Basement/Crawl space. Heed your inspection report. Its everything.
Step 6: Appraisal
This is where deals are won and lost. Your lender will send someone out to check behind your work. The appraiser has the final say in whether or not your loan will be approved at most lending companies. If the appraiser gives a value less than what you’ve offered, its back to the negotiation table. If the amount is equal to or greater than the amount you offered… Congratulations! You’ve Puchased a home and you’re on to the final step.
FInal Step: Closing!!
You’ve done it!! Now you’re dotting ‘I’s and Crossing ‘T’s at the title company. In 45 minutes you will have the keys to your brand new home. Welcome to the club.
The answers we seek are often hidden in plain sight. Right in front of us. What if I told you that in the title of this blog was a multi-million dollar secret. No codes to break, No nonsense. All you had to do was execute these steps and the fruits of your labor would be Ripe for the taking. Well …
The city of Detroit is in a unique position. There is one group of people building, rebranding, and shaping the future of a population that does not exist, yet. The existing population is adjusting to a rapidly changing environment that has not been very inclusive but for a select few. These divides have always existed. In every major city.
The difference is, there has never been a major city that was resurrected from the ashes with federal government funds.
After the auto bailout of 2009 Detroit’s population dropped sharply by more than 200,000 residents.
There’s no direct correlation to the decline in population and the auto bailout, but Detroiters know it’s not a coincidence that Big 3 employees (Chrysler, GM and Ford) accepted buyout packages the year before upwards of $75,000 (for eligible employees). Then suburban new home sales saw a sudden spike, in sales. Macomb County has grown exponentially since 2010 as people continue to build & secure shelter outside of the city.
What became of the homes they left behind? They could not sell the them. The city’s bankruptcy tanked the value. Basic city services were being cut left and right. Who could live in such a state? Where would they live? Vibrant neighborhoods saw the bubble burst and their homes were worth a third of what they paid for them. Panic set in. They left.
Scary as that is, from the coal and pressure diamonds were created.
Some of these abandoned homes in Detroit were Multi-Family Residences. Duplexes, Flats, Apartments, etc. In the right spots these properties can be immediate income streams for those that want to be a part of the real estate boom without being in the real estate business. With a solid system in place, profits could flow as soon as your first year of ownership.
Thats not the best part tho. The real money is in conversions. If you can obtain one of these MF Homes and convert it into a Single Family Residence (SFR) The returns could be astronomical. Especially, in Detroit, where the values are still relatively low.
If I’m simplifying a complicated process and skipping to the meat, A Multi Family flat could be purchased for 25k coverted for 25k and sold for 100k Netting and investor 100% profit. Rinse and Repeat after 20 flips you’ve made your first Million in profits.
Courtesy of Bedrock
Call Me if you want to take advantage (586) 719-5115
Buyer agents work to negotiate the best terms and price for the buyer. Best of all, the buyer agent’s services are free to the buyer.
Most buyer agents will have their clients sign an agency agreement, an Exclusive Buyer Agency Agreement. It outlines their services, how they are compensated, and how the two parties will work together.
The Seller has hired an agent to represent them in negotiations. Much like a hockey goalie, real estate agents are there to block bad deals from happening. Even FSBOs(For Sale By Owners) most often have consulted with a professional REALTOR® before putting their home on the market. Wouldn’t it be wise to bring a big stick to the ice rink?
Remember, you wouldn’t hire your spouse’s attorney to represent you in your divorce. The same goes for real estate. Why use the seller’s agent to negotiate your best interest? There is an inherent conflict of interest.
Your buyer’s agent is your trusted advocate.
According to most buyer agency agreements, the buyer’s agent must do these things:
Protect their client’s financial information
Negotiate the best possible price for the buyer
Must disclose to the buyer if they are working with another buyer interested in the same property
Show all properties the buyer is interested in that fits their criteria and budget
Connect you with the service providers—inspectors, lenders, home warranty companies—to best suit your needs
The buyer also has some responsibilities to their buyer’s agent:
Buyers must work with their buyers agent exclusively
Buyers should never give personal information to any other agent
Buyers should not call other agents to see properties, even if they think they are saving their agent some time and effort
Buyers should clearly define their must haves and deal breakers to help their agent streamline the showing process
Home buyers are at a premium in today’s housing market. Buyers should interview agents just as seller’s interview listing agents. Make sure the buyer’s agent you select is familiar the type of property you want to purchase, the area you want to purchase in and the particulars of your situation. An agent is only as effective as the information they are given. Clients relocating from one city to another require a different set of skills from a client moving within the same area, for example.
Buying real estate is a big decision. Ask Dibbs to find a REALTOR® who will guide you through the local market conditions.
As a real estate professional I’m most often asked to find “the hookup” for my peers. Far more than often I explain the ins-and-outs of the real estate market, they become disinterested and we play XBOX.
I want to share, with y’all, every important detail my friends dismissed with napalm fire and knife-ing.
There are two very specific types of homebuyers. Only two categories that Really Matter. Those categories are READY (Financed, Cash Buyers) and NOT READY (Renters, w/Poor Credit)
If you fall into the NOT READY category, do not fret. We have a a few options. One being to find you a nice rental to improve your status to READY and the other is alternative financing. Some Sellers (bless their hearts) want to get out of their house so bad that they are willing to buy it for you, with the consideration that you will, of course, pay them back. They essentially become the Bank of Saviour to the NOT READY homebuyer.
Most people, when searching for “the hookup” look for “rent-to-own” deals. — Applying your monthly rental payment towards the purchase of the house/condo you’re living in. What they are really looking for is one of these two types of Seller Financing.
A Lease Option – a type of contract used in both residential and commercial real estate. In a lease-option, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property. (this is for NOT READY buyers that become READY buyers during the term of the lease)
Land Contract – a contract between a seller and buyer of real property in which the seller provides financing to buyer to purchase the property for an agreed-upon purchase price (This varies between contracts, but usually allows time for a NOT READY to become a READY before the final installment is due.)
Now, finding these types of deals does not guarantee you will be swimming in your Beverly Hills pool this summer. You still must qualify for the house. You have to make the seller believe you are worth the risk.
Here are some steps to better your chances:
Prove how serious you are about homeownership by being open and honest about your credit history. Your score is low for a reason. It looks good if you know why and can demonstrate what you have learned.
Have your down payment ready. The competition for these deals is stiff. Without at least 10% in cash… Jesus be a call back from the Seller.
Seek Counsel. A real estate attorney is a good source for looking at contracts and explaining all of the terms of your agreement. Have them work with your real estate agent to get you the best price and terms for your market.
Moving from a small town or suburb to a large city can be an intimidating proposition. Here are a few tips to help make your move as painless as possible.
Research before you move. It’s important to understand the culture you’re joining. Do research online and find out about school systems, neighborhoods, parking, weather, public transportation, and laws that are native to that area. If you can, visit a city before moving and connect with someone who’s lived there before.
Have a plan. There are a lot of steps to go through before you start packing the moving truck. Find housing before you leave, or at least know where you’ll stay while you look for a home. Never sign a lease on an apartment that you haven’t seen. If you can’t get there, find a friend or an employer to check for you. Have a job waiting for you, or if that’s not possible, know what you’ll do for money in the first few weeks of living there. Try to line up things like driver’s licenses, car insurance, renter’s insurance, and parking passes ahead of time as well.
Get involved. Meeting people in a big city can be daunting. Don’t expect the neighbors to knock your door down with a casserole when you arrive: city life is often too noisy and hectic. Take the initiative. If there are things you liked to do in your town, find ways to do those things in the city. Try new things. Volunteer. Big cities offer so many opportunities to engage other people, so find what you like.
Mind your wallet. City life is expensive. Everything costs more: food, insurance, clothes, rent. There are also a lot more ways to get ripped off, whether legally or criminally. Be careful how you spend, and know where your money is going.
Selling your home doesn′t just mean hiring a realtor to stick a sign out front. There are a lot of preparations you should make to ensure you get the best offer possible in the shortest time.
Repair. Just because you’ve gotten used to the cracks in the walls and the rattles in the radiators doesn’t mean a buyer will too. If you have hardwood floors that need refinishing, be sure to get it done—hardwood is a huge selling point. Buyers like to snoop around, so be sure to fix any sticky doors or drawers as well. Finally, don’t forget to address any issues with the exterior—fences, shingles, sidewalks, etc. After all, without curb appeal, some buyers may never get to see the inside.
Neutralize. You want buyers to see themselves in your home. If your living room has lime green shag, wood-paneled walls, and all your collectibles and personal photographs, this will be much harder for them to do. Try replacing any bold color choices in your floors and walls with something more neutral—beiges, tans, and whites. Repainting and reflooring will make everything look fresh and new, and help prospective buyers imagine all the possibilities.
Stage. Once your house is clean and updated, it’s time to play dress up. Home stagers can add small details and décor touches that will bring out the possibilities in the various spaces in your home: lamps, mirrors, throw rugs and pillows, flowers, decorative soaps and towels, patio furniture. Home staging can be particularly useful if your home is especially old or if the exterior looks dated. Think of it as a little mascara and rouge—if it’s done right, you notice the beauty, not the makeup.