Northern Michigan Real Estate: February 2010

Why should you encourage your clients to purcahse a Hmoe Warranty as part of their Real Estate Transaction?

• Lessen your liability
• Reduce after-sale disputes
• Increase your repeat & referral business from satisfied customers
• Financial help with repair costs allows peace of mind for clients
• Home Warranties pick-up where insurance companies leave off
• A home warranty is a highly effective marketing and negotiating tool, particularly helpful when selling older homes.
• Reports indicae that home warranties help sell homes up to 15% faster and can  help obtain 2.2% higher selling price
• Protects against repair and/or replacement on covered systems while the home is on the market
• No cost for basic coverage until the home is sold in most cases.

 REFERRING FRIENDS AND FAMILY

If you have a relationship with a Realtor that you know and trust, share that person's expertise with others that you know.  Many times, consumers are speaking with someone who mentions that they are moving out of state or just out of the area.  Even know they may know a great Realtor that they have worked with in the past, they don't refer them to the person moving because the Realtor does not practice in the area that they are moving to or from.  Consumers never think twice about this and Realtors are constantly asking why?  Let me let you in on a little secret that will help both your friend moving and the Realtor that you have grown to know and love.  Your Realtor can help anyone, anywhere with the purchase or sale of a home.  ALl Realtors have the ability to find, screen and refer a Realtor to someone moving to or from the new area.  This will help the client by assuring that they will get an experienced agent.  Picking an agent out of the phone book or from a web site can sometimes be a scary thing.  Why not trust your friends and family that are re-locating to someone that you already know and trust.

The greatest compliment you can give your Realtor is the referral of your friends and family, weather it is moving across town or across country.

Homes for Heroes

IF YOU HAVE NOT TAKE A LOOK AT THIS PROGRAM FOR YOUR CLIENTS, YOU ARE TRULY MISSING OUT ON A WONDERFUL PROGRAM.

HOMES FOR HEROES IS A NATIONAL PROGRAM THAT WAS STARTED IN 2002 BY A REAL ESTATE COMPANY IN MINNESOTA AND HAS SPREAD THROUGHOUT THE COUNTRY.

THE PROGRAM OFFERS CASH REBATES AND DISCOUNTS TO HEROES WHEN THEY BUY OR SELL A HOME.  REALTOR AND LENDER AFFILIATES RECEIVE LEADS FROM THE HOME OFFICE FOR A HERO THAT IS LOOKING TO BUY OR SELL A HOME.

WE ARE ROLLING OUT THIS WONDERFUL PROGRAM TO NORTHERN MICHIGAN MARCH 15TH

HOMES FOR HEROES INCLUDES MILITARY PERSONNEL (ACTIVE AND RETIRED), FIRE AND POLICE, TEACHERS AND MEDICAL PERSONNEL.

CALL TODAY FOR ADDITIONAL INFORMATION ON HOW HOMES FOR HEROES CAN SAVE YOU THOUSANDS ON YOUR NEXT HOME PURCHASE OR SALE.

 HOME INSPECTIONS

 You need to know a great deal about your house when you sell it, usually more than the average seller knows or wants to know. So, how do you handle disclosure without spending the next six months learning about construction? Many sellers use an inspector. The inspector solves a whole series of problems. If the inspector you use is bonded, and a problem arises after the sale, it is easy enough to say to the buyers, "I didn't know there was a problem. I had the house inspected and I trusted the work of the inspector. Blame the inspector."

 That, of course, does not get you off the hook, but it does help things. In addition, if there are damages to be paid and the inspector is to blame and is bonded, the inspector may have to pay them instead of you. Thus, using an inspector can be very worthwhile.

 FINDING A REPUTABLE HOME INSPECTOR 

Almost anyone can inspect a house, but that does not mean they are qualified. In recent years, contractors without enough work have taken on home inspection to supplement their income. A home inspection usually costs between $250 to $400. A contractor can walk through your house, check little boxes on a form, and charge you several hundred dollars for a few hours work. But are contractors qualified? Some are and some definitely are not. A contractor who builds new homes may know very little about older homes. A plumbing contractor doesn't necessarily know about electrical needs. A cement contractor probably is not an expert on roofs. The value of their inspection is questionable at best.

 The real problem is that home inspections are relatively new. In a few years, states will undoubtedly begin licensing and testing home inspectors. But as of now, few states are doing this, so sellers are on their own. One way of qualifying a potential inspector is to insist that he be a member of ASHI. This is the American Society of Home Inspectors. It is a trade organization that has been endeavoring to raise the standards of home inspectors overall. ASHI sets standards for inspectors and makes an effort to see that its membership follows those standards. ASHI, however, does not require its members to be contractors. Having a contractor license does not necessarily qualify someone to be a home inspector. For more information about ASHI, you can contact the organization at Suite 630, 1010 Wisconsin Avenue, NW, Washington, D.C., 20007. Their telephone number is (202) 842-3096.

 Beware of contractors who offer to do a home inspection for a nominal fee, then find something wrong and offer to fix it, usually for a high fee. Some unscrupulous contractors have been using home inspection as a way of procuring business. A good rule of thumb is to never have the person do the work who does the inspection. Also, don't ask the inspector to refer you to someone. That someone could be the inspector's brother-in-law or sister who is on the team.

 Always insist on getting a written report from an inspector. An oral report is useless to you if there should be a problem from the buyer later. When problems occur, everyone seems to remember things differently. You may say the inspector told you the house was perfect, but the inspector may say that the defects that the buyer is now complaining about were disclosed in the inspection. Get it in writing.

 TERMITE INSPECTION 

This is just a quick note to point out that termite inspections are not really a new part of the home inspection process. Lenders have been requiring termite inspections as a condition for approving a new home loan for decades. A termite inspection and the repair of damages has been a requirement of home sales almost as long. In almost all states, termite inspectors are licensed, and their written reports are required to be registered.

TITLE INSURANCE

 TITLE INSURANCE IS THE ULTIMATE PROPERTY PROTECTION.  IN REAL ESTATE, "TITLE" MEANS A RIGHT TO OWNERSHIP.  THE TITLE INSURANCE PROFESSIONAL YOU WORK WITH IS VERY IMPORTANT TO THE SALES TRANSACTION.  IF YOU HAVE CLEAR TITLE TO A HOUSE OR PROPERTY, IT MEANS THAT YOU OWN IT FREE AND CLEAR.  THE DOCUMENT STATING YOUR RIGHT TO A PROPERTY IS ALSO CALLED A TITLE.

 TITLE HAZARDS

Various kinds of claims can exist to "Cloud" a title.  Some examples are:

·  Long lost relatives or heirs could show up with a claim that supersedes yours.

· Sometimes fraud, such as forgery, is involved on recorded documents.

·  Liens due to foreclosures (nonpayment of loans to the original lender).

·  Easements (right to use of the land for other purposes like utilities, etc.).

·  IRS tax liens from the previous owner.

 Keeping it safe: When buying a property, the best way to protect your investment is to obtain the services of a reputable title company to do a thorough title search, and insure you against the chance of some lien or claim being overlooked.

 Seller's Proof: It is general practice in a real estate transaction for the "Seller" to purchase the title insurance policy covering the new owner. The understanding is that the seller is proving to the new buyer that the property has clear and marketable title. The buyer receives an owner's title policy from the title insurance company at the close of escrow to insure his interests. The buyer is generally required by the lender to provide an additional policy of title insurance covering the lender's interest in the property for the amount of the loan he or she is taking out on the property. This is generally paid for by the new buyer and provided to the lender at the close of escrow.

 Title Claims: In the unlikely event that an unforeseen claim to a title shows up after transfers, your title insurance policy reimburses you for all losses covered by your policy and may also provide legal support to defend your rights.

 ESCROW 

You may have already heard phrases such as "The house fell out of escrow," or "We're waiting for escrow to close." So just what is escrow anyway? And what does it mean to a home buyer or seller?

 Simply stated, escrow is the involvement of an impartial third party in a real estate transaction. This neutral third party acts as an intermediary between the buyer and seller, and also collects and  remits funds as instructed. Generally, this means that when you buy a home, you do not pay the seller directly. Instead, you deposit funds with the escrow company that are then remitted to the seller on your behalf. The basic concept of escrow is to ensure that both the buyer and the seller are protected during any real property transaction. Not only is "Escrow" the concept of a third party receiving and disbursing funds, but it also includes other valuable transaction services. In order to facilitate the transfer of property from one owner to another, the best escrow companies will:

 · Determine the legal ownership and status of the property through a "Title Search."

· Request a beneficiary's statement if a debt is to be assumed by the buyer.

· Confirm that the buyer is qualified and meets the lender's requirements.

· Confirm property meets requirements imposed by lender and/or buyer.

· Prorate all related financial matters (e.g., taxes, insurance) involved in the ownership transfer.

· Ensure all legal documentation is complete, including recordation of the deed.

· Comply with time limits imposed in instructions.

· Close escrow when all instructions (buyers, seller's and lender's) have been fulfilled.

· Disburse funds as instructed, including all related fees (title fees, commission, payoffs, etc.)

· Prepare final statement for all concerned parties.

 Escrow operations are licensed by the State of Arizona, and their records are open to inspection by the Insurance Commissioner and the State Banking Department.  Thus, the state helps ensure that escrow companies are properly managed and truly act as impartial parties to any real property transaction.   No changes may be made to the purchase contract without the consent of the parties to the transaction. 

 Finally, all escrows have clearly defined time limits. If, for some reason, all terms of the purchase contract cannot be carried out by the end of the time limit, all parties involved are entitled to the return of documents, fees, funds and other related materials, as prescribed by the contract. They also may mutually agree to extend the time period by amending the purchase contract.

 The term "Escrow" has come to mean "Neutral Protection" for the seller, the lender and the buyer. All parties involved in the transfer of real property are impartially protected during the transaction and are serviced by professionals intent on ensuring a smooth, trouble-free sale.

 Escrow is an indispensable necessity in today's marketplace. If you need further explanations during the process, always consult your escrow officer. The escrow officers are, indeed, a neutral third party, and their job is to make sure all sale conditions are met quickly and efficiently.

Only a real estate professional who belongs to the National Association of Realtors may call himself or herself a Realtor. A Realtor is bound by a Code of Ethics and pledged to protect and promote the interest of the seller by providing fair treatment for all parties involved in the real estate transaction. Here are some of the ways a Realtor can help you sell your home:

•    A Realtor is knowledgeable of the market and gives you instant exposure to the

             maximum number of buyers.

•  A Realtor can assist in "pre-qualifying" prospects as to their affordable price range and housing needs.

•  A Realtor knows current real estate values and can help you set a realistic,

           competitive price for your home. They are skilled professionals and they know how 

           to market your home efficiently and effectively.

• A Realtor can figure the net proceeds from your sale, taking into account your

          outstanding loan balance, closing costs and possible creative owner financing.

• A Realtor can tap into a large market of potential buyers through referrals and

          professional marketing techniques.

• A Realtor can free you from the problems associated with showing your home,

          handling phone inquiries, appointments, showings and negotiations of the contract.

          Your home will only be shown to serious, qualified buyers.

• A Realtor maintains objectivity in presenting offers and counter-offers.

• A Realtor assumes liability by maintaining errors and omissions

          and malpractice insurance.

• A Realtor is a professional and may be able to get the job done in less time than you. 

The information provided about what a Realtor can do for you was not designed to scare you into listing your home. Really! It is simply pointing out that when you use an agent, a good agent, you DO get something valuable for the money you pay them in the form of a sales commission.

THIS DOES NOT MEAN YOU CANNOT SELL YOUR HOME ON YOUR OWN!

 However, your time and stress are also important to consider and all sides of the FSBO question need to be discussed. Remember, only a fool works for nothing and if you do sell on your own, you will earn the money by hard work and persistence.

 Only you can decide whether or not the stress of selling your own home is worth the savings to you. If you want to do it... Just do it!

 A COMPROMISE MAY BE THE ANSWER!

  Maybe you should set a time limit on your FSBO activities. Try it for a month or so and if you aren't getting the response you want, reconsider listing your home with a professional Realtor. Maybe you set the limit for two months. Whatever you decide, at least you will know that you gave it a chance and you'll know if you were able to do it or not. Be realistic on the time limit. If you are in a rush to sell, make the limit shorter. If you are in no hurry, make the time limit longer.

 If you sell on your own, great! If you don't, it's not a problem. You can always hire a Realtor at any time. Either way, Good Luck.

First Place Bank

Traverse City has a new choice when it comes to lending.  First Place Bank has just announced that they will have a lending branch here in Traverse City.  Wait, that is not the best news.  The best news is that the entire lending team from Bank of America has come on board to join them.  We will have the same great faces and service but with a much better product line for the consumer.  Holly Hack, Loan Officer has informed me that First Place has great rates, lot loans, construction loans and the two best things are that we will once again have local processing and underwriting.  I am so excited I can hardly stand it.  Local processing is something that our local banks took away last year as a cost cutting measure.  Customer service from those lending institutions suffered greatly as a result of this.  I cannot tell you how helpful local underwriting will be.  No longer will a loan officer have to wait for a return phone call or email from someone they have never met downstate or out of state for an answer to your loan status.  If you or your clients have any mortgage or re-finance needs, give Holly a call at 231-409-0771 or email her at holly@hollyhack.com.

How Safe Will My Home Be?

This is a question that all sellers should be asking their Realtor when they interview them, yet I cannot say that I have ever been asked this question.  There are several things that a Realtor can do to ensure the safety of the homeowner.  The first thing is to have a lockbox that is secure and trackable.  The majority of agents out there are placing lock boxes on homes that they pick up from the local hardware store.  These boxes are easily broken into and they also cannot be traced to who used them.  Agents do have the choice to go with a more sophisticated lock box that will deny access between 8:00 pm and 8:00 am ensuring the privacy of the seller and it also records every agent that was in the house along with the date and time that they were there.  The second thing is to not have open houses.  Did you know that less than 1% of listings are sold through an open house.  Do you want to expose your home to potential robbers for only a 1% chance of it selling.  I can tell you from experience that the only reason Realtors do open houses is to generate potential buyers for other properties.  Open houses may bring potential buyers to your house but the chance of them purchasing that home is slim.  There have been many areas of the country where people attend an open house to see what is in the house and if it is worth coming back to burglarize at a later time.

My advice to any seller interviewing a Realtor is that they ask these two important safety questions:

1. What type of lock box are you using on my home?
2. Do you do open houses?

Child and Family Services of Northern Michigan is gearing up for our Festival of Tables Fund-raising event.  The event will take place at the Hagerty Center in Traverse City, MI on May 14th and 15th.  This is the main fund-raising event for the organization and if you have not attended this event in the past, you MUST attend this year.  Holly Hack, Loan Officer for Bank of America and Colleen Macdonald, Owner of Mustards restaurant are the co-chairs of the event and are doing a fabulous job to create a fun and festive event.  There will be a silent and live auction, lots of food and many wonderful attendees.

Child and Family Services opened in traverse City in 1937 as a branch of the Michigan Children's Aid Society, whose purpose was to"To strengthen and nurture children and families by ensuring their safety and well-being while promoting healing and growth through education, support, and advocacy."
As northwestern Michigan has grown and changed, so, too has Child and Family Services changed to respond to the issues relevant to children and families today.  Through programs that address the continuum of people's social and emotional needs, the professionals of Child and Family Services improve the health and well-being of the whole community. 

Child and Family Services is a nonprofit organization serving some 4,000 people in 12 counties each year.  offices in Traverse City and Habor Springs house more than 60 staff members.  Child and family Services mission is:  "to promote the safety and well-being of children, adults and famalies by providing services that foster and develop social and emotional healing and growth."

Child and Family Services programs are:

• foster care and foster home licensing
• infant and special needs adoption services
• behavioral health services/counseling
• juvenile justice, including substance abuse monitoring, community service supervision, mentoring, and experiential therapy
• VOCA:  treatment and support for child survivors of sexual abuse
• pregnancy and birth counseling
• Family Group Decision Making:  an intensive family preservation program
• safe, supervised visitation for children and families
• Development:  securing the financial future of the organziation

We are currently seeking sponsors for our fund-raising event and would urge each and everyone of you to look deep into your heart and consider making a donation to this wonderful event.  For additional information, please contact Christine Stalsonburg, Sponsorship Committee Member  at 231-944-0854.

We are changing children's lives - One child at a time.

2009 Year End Sold Market Analysis
Five County Area (Single Family):
Grand Traverse, Antrim, Leelanau, Kalkaska, Benzie