Michigan Real Estate Blog

FrontDoor.com senior editor Annalisa Burgos talks to a Boston couple who learn a valuable lesson when buying their first house. Go to bit.ly for expert tips and advice for first-time home buyers.

This video contains tips and information on how buyer should write an offer to get the best deal

Joel Persinger, Your Real Estate Dude, gives you the top 5 tips to help you buy a home.

Experienced Agent Hall Willkie of Brown Harris Stevens in NYC shares his expertise with potential homebuyers. Check out hot properties at ResidentialNYC.com

In the world of investing there are two kinds of people, those who make money and see a profit and those that don’t. Everyone wants to be a part of the first group, but not everyone knows how to do it.If you are truly to do well in investing, you have to take a few lessons from the big dogs. After all, they got to where they are through years of hard work and investing. They must have done something right. The first thing you need to know is where to invest your money. Many of those money moguls will tell you their fortunes were made in real estate. Look at Donald Trump! His whole career was made on the right real estate moves at the right time. Another thing to consider is that real estate is an asset, instead of a more fluid commodity that could disappear overnight. What if the market had a tough time? Warren Buffet once said, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” Can you say that about your other holdings? If you have real estate in your investment portfolio, you probably could, as real estate is something that will still have value.For many people who are accustomed to the more traditional types of investments, they are not really sure where to start when it comes to investing in real estate. Do you have to buy a piece of property? A house? An apartment complex? The answer is no. You don’t have to do any of those things. Purchasing property outright, while still a nice investment, is a much more detailed investment than most people want to try. You want to be a part of a fund or have something as liquid as a stock, not be stuck in a situation where you are forced to deal with all the contracts and deeds of property as well as the maintenance of it.This is why you should be looking at REITs. REITs are Real Estate Investment Trusts. Essentially these are the mutual funds of real estate. When you purchase shares in REITs you are putting money into the pot for the real estate management group or real estate development group to build or purchase real estate with and then manage it and keep it operational. How you profit from this system is when through the money the management group makes annually. From rent in residential properties to leases of business properties, 90 percent of the profits from REIT investments must go back to the shareholders in the form of dividends each year.Beginning investing in REITs is simple you just need to know where to look. A website like REITBuyer.com is a great place as they not only have all of the education and research you need to find out what REITs are out there and see how they are performing, but they also are a full service investing real estate broker so you can purchase your REITs through them as well.This article was written by Earl E. Bird, III, spokesperson for the REIT Buyer.com, a full service online information resource dedicated to assisting investors who are interested in learning more about Real Estate Investment Trusts (REITs), Real Estate Mutual Funds and how to invest in them. Visit http://www.reitbuyer.com to learn more.

San Diego County is home to one of the largest concentrations of military bases in the United States. In fact, the San Diego area contains 12 major Marine Corps and Navy bases and facilities. If you’re in the military and moving to San Diego, one of your biggest decisions is whether to buy a property, live on base housing (if this option is available to you), or rent a home or apartment. If you choose to buy a property, there are many issues to consider before taking this step.
BUY OR RENT?
The decision to buy or rent is more complicated for military personnel because you may be assigned to San Diego only for a limited period of time. If you plan to purchase while in San Diego and then sell when you transfer, the condition of the real estate market at the time you sell will make this either an easy or difficult process. In a seller′s market (when demand exceeds supply), properties tend to sell quickly and at or above asking price. In a buyer′s market (when supply exceeds demand), properties usually take much longer to sell and may sell below asking price. Individuals in the military should consider this issue in determining whether to buy or rent real estate in the San Diego area.
For those who choose to buy, the major other consideration is the likely appreciation rate of your property during your tenure in San Diego. If you plan to sell your property before you depart to your next assignment, you should remember that there are expenses (e.g. realtor fees, taxes, etc.) associated with selling your house, and any price appreciation you realize by owing the property for a few years, may or may not be offset by these fees.
Some individuals choose to keep their property even after they transfer to a new assignment outside of San Diego. In these cases, you can rent out the property, leave it empty, or find another acceptable use of the dwelling. If you choose to hire a Property Manager to oversee the renting and maintenance of your property, keep in mind that the fess for this service will cut into any monthly profit you realize on the property.
GETTING A HOME LOAN?
If you decide to purchase a property, obtaining a home loan is one of the tasks you must undertake. Many active-day members, retirees and other service veterans are eligible for special loan programs guaranteed by the Veterans Administration (VA).
To be eligible for a VA guaranteed loan, you must have served on activity duty and have a discharge status of other than dishonorable after a minimum of 90 days of service during wartime, or a minimum of 181 continuous days during peacetime. There is a minimum 2-year service requirement for veterans who enlisted after September 7, 1980. The 2-year requirement also applies to Officers who began service after October 16, 1981. There is a minimum 6-year service requirement for National Guard members and Reservists, and surviving spouses are also eligible under some conditions. There are other special conditions in which a person may be eligible, so contact your local VA office to get more information.
WHAT IS VA GUARANTEED LOAN?
The VA loan is a federal guarantee of a maximum of 25% of a home loan amount but not to exceed $104,250. This formula allows eligible members to obtain a maximum loan amount of $417,000 (as of 2006). However, service members must meet other eligibility requirements. Individuals borrowing using this type of loan must intend to be occupants of the purchased property.
Private lenders are the source of funds for VA guaranteed loans. The guarantee provides these private lenders assurance that the federal government will reimburse the lender up to the maximum allowable amount if the borrower fails to repay the loan. Because of this guarantee, lenders are more favorable to offering loans without a requirement for a down payment.
VA CERTIFICATE OF ELIGIBILITY
Individuals desiring a VA guaranteed loan must first obtain a Certificate of Eligibility from the Veterans Administration (VA Form 26-1880). Contact your local VA office to obtain this form by calling 1-888-244-6711. You will need a copy of your military discharge document (DD-214) to submit with your application. Once you have the Eligibility Certificate, you can then select a lender or mortgage broker to work with on getting the loan.
CLOSING COSTS
In addition to the purchase price of your property, there are closing costs that must be paid to process your home loan. These closing costs are fees that are charged by different service providers to help complete the loan process. For example, your lender will require an appraisal of the property to make sure that its value is at or above your purchase price. Other charges commonly included in closing costs are: recording fees, credit report fee, prorated taxes and assessments, hazard insurance, flood insurance (if required), survey, title examination, title insurance, postage and shipping fees, and the VA Funding fee.
WHAT IS THE VA FUNDING FEE?
The VA charges a fee to individuals utilizing the VA guaranteed loan. This fee is a percentage of the loan amount and is linked to the size of your down payment on the home you plan to purchase.
For active-duty personnel or veterans who put no money down, the funding fee is 2.15% of the loan amount. This rate increases to 2.4% for National Guard/Reserve.
For active duty personnel or veterans who put a down payment greater than zero but less than 10% of the loan amount, the fee is 1.5% of the loan. This rate increases to 1.75% for National Guard/Reserve.
For active duty personnel or veterans who put a down payment of 10% or more of the loan amount, the fee is 1.25% of the loan. This rate increases to 1. 5% for National Guard/Reserve.
The rates listed above are for first time users of the VA loan guarantee program. Individuals who have used the VA guaranteed loan program before pay higher rates than first time users. The rates above are subject to change. In some limited cases, individuals are exempt from paying the funding fee. You should contact your local VA center for current information.
CHOOSING A VA LOAN VS. A CONVENTIONAL LOAN
You must carefully evaluate the terms of the VA guaranteed loan vs. the terms of a conventional loan. One advantage of a VA guaranteed loan is that many lenders will not require you to put a down payment on the purchase of the property, assuming you meet their other lending criteria (e.g. credit scores, sufficient income, adequate debt to income ratio, etc.). There are also many zero down payment conventional loan programs. In some cases, the VA guaranteed loan will offer a lower interest rate and better terms, and in other cases, you can obtain a better deal through conventional financing. A good loan officer can help you evaluate the advantages of either loan, given your particular situation.
FINDING THE RIGHT HOME
If you are familiar with the San Diego area, then you probably already know where you want to live. If you are less familiar with the communities in San Diego, your Realtor can serve as an excellent resource to answer your questions. There are many steps to take during the home search process, which include:
1. Work with your loan officer to identify how much you can afford.
2. Determine what type of property you want to buy (single-family home, townhouse, condominium, other). Your Realtor can advise you about the differences between these types of properties.
3. Determine how many bedrooms, bathrooms, square footage, etc. you need.
4. Determine what areas of San Diego you would consider living in.
5. Calculate the drive time (with and without traffic) to your job.
6. Identify the quality of schools in the neighborhoods that you are considering.
7. Locate the crime statistics for the neighborhood that you are considering.
8. Identify the location of local community resources such as libraries, shopping centers, athletic centers, etc.
9. Ask your Realtor to advise you about the resale potential of the home you are considering.
Although there are many other factors to consider, the above is a good starting point. Your Realtor should be able help you get answers to the questions above as well as provide you many other resources. Keep in mind that most Realtor′s who assist homebuyers and paid by the home seller, but make sure to ask your Realtor about this.
HOW MUCH SHOUD I PAY FOR A HOUSE?
Your Realtor should be an excellent source of information to help you understand a fair offer price. The Realtor should provide you information about what other similar properties in the same community have sold for recently, current pricing trends for the community, as well provide you a recommendation based on their experience in the local market.
DO I NEED A HOME INSPECTION?
There are many other issues besides the offer price to consider when making an offer. For example, many buyers find it advantageous to get an inspection of the property by a qualified inspector. The inspection typically covers the major systems of a property. Check out the National Association of Home Inspectors web site for more information about what is covered in a typical home inspection. Getting a home inspection is generally a good idea.
HOW LONG WILL THIS TAKE?
If you want to use the VA guarantee, then make sure you have obtained the Certificate of Eligibility far in advance of your relocation to San Diego. Whether or not you are using the VA loan program, be sure to obtain a loan pre-approval (sometimes called loan prequalification) from a lender or mortgage broker. This lets home sellers know that you are a serious buyer and are ready to act quickly if needed.
Prior to moving to San Diego, get a sense of the local real estate market. Your Realtor can set up an automatic email notification system that will send you descriptions and pictures of properties that meet your criteria. Doing this type of research should save you a lot of time when you arrive.
Once you have your loan pre-approval, the next step is to locate a property that meets your needs. Your Realtor should show you a variety of available properties that meet your criteria. Once you find a house you an interested in, your Realtor will prepare the purchase offer documents, and guide you through the loan and closing process.
In summary, it’s simply a process of getting a loan, finding a house that you like, making an offer that is accepted, and going through the closing process, which can occur in less than 30 days.
CONTACT A SAN DIEGO REALTOR
If you are moving to San Diego, contact a Real Estate agent who is familiar with VA guaranteed loans and has experience working with military buyers. Many agents have prior military service themselves, and are very familiar with your situation and needs.

Interested in learning how to entice a buyer into purchasing your home? Concentrate on making a memorable first impression. Sometimes, all it takes is a little preparation to get your house ready to sell. You can inspect your house and do any necessary repair work yourself, which will save you some, but if you really want the best outcome, pay a little extra and get your home inspected by a professional.

What are some of the other things you can do that will impress buyers the most? Here are a few suggestions.

Make The Outside Look Beautiful.

Nothing extreme, just beautifying. Your buyer will be impressed when the outside looks clean and taken care of. You should be aware that the outside is the first impression formed by the buyer. There are two senses that you want to please. One is the nose, the other is sight. You want to clean up the exterior of your home to have a welcoming feeling on the outside. Here are some steps you can take:

* Mow the grass, plus water and clean out weeds from around plants and flowers.

* Clean the entrance and driveway, then put a few potted flowers along the sides.

* Eliminate any stale odors with fresh potpourri.

* Clean the windows and doorways.

* Remove or store equipment away.

* Paint walls that need it.

Create a Welcoming Interior.

Now that your buyer loves the outside, you want them to feel the same about the inside. You want the buyer to feel at home the second they walk in. Here are some steps:

* Clean or even strip any tiled floors that are dirty.

* Clean up the garage, basement, and attic.

* Clean and open your windows for fresh air and light inside your home.

* Give your pets a bath.

Repair and Replace

If you have outdated appliances, broken furniture or equipment, you might want to fix or replace them. Look around for:

* Broken or missing doors

* Cabinet hardware

* Ceilings

* Filters for ventilation

* Tiles broken in the bathroom or kitchen

* Sink and faucet

* Wallpaper or paneling

* Certain furniture

Get opinions from friends and family.

If you want to make your Westfield, New Jersey house a buyers’ first choice, have friends act as a buyer and get their advice. The one thing you want to know is if your home feels like their home.

Make The Outside Look Beautiful.

Nothing extreme, just beautifying. Your buyer will be impressed when the outside looks clean and taken care of. You should be aware that the outside is the first impression formed by the buyer. There are two senses that you want to please. One is the nose, the other is sight. You want to clean up the exterior of your home to have a welcoming feeling on the outside. Here are some steps you can take:

* Mow the grass, plus water and clean out weeds from around plants and flowers.

* Clean the entrance and driveway, then put a few potted flowers along the sides.

* Eliminate any stale odors with fresh potpourri.

* Clean the windows and doorways.

* Remove or store equipment away.

* Paint walls that need it.

Create a Welcoming Interior.

Now that your buyer loves the outside, you want them to feel the same about the inside. You want the buyer to feel at home the second they walk in. Here are some steps:

* Clean or even strip any tiled floors that are dirty.

* Clean up the garage, basement, and attic.

* Clean and open your windows for fresh air and light inside your home.

* Give your pets a bath.

Repair and Replace

If you have outdated appliances, broken furniture or equipment, you might want to fix or replace them. Look around for:

* Broken or missing doors

* Cabinet hardware

* Ceilings

* Filters for ventilation

* Tiles broken in the bathroom or kitchen

* Sink and faucet

* Wallpaper or paneling

* Certain furniture

Get opinions from friends and family.

If you want to make your Westfield, New Jersey house a buyers’ first choice, have friends act as a buyer and get their advice. The one thing you want to know is if your home feels like their home.

When it comes to buying a vacation home, most of the home buyers check out with the hottest tourist destinations of the world. But not all the tourist hot spots are fit for real estate investment. But Caribbean surely does not fall in that category—a Caribbean real estate investment is as good as a Caribbean holiday. However, for the best value for your investment, you should prefer Costa Rica over her neighbors. The country is fast developing and its real estate, especially the tourism related real estate is swelling. That Costa Rica is a retirement heaven for the baby boomers is not altogether a marketing hype—the country’s real estate, especially the Costa Rica condos truly help your investment grow bigger than what they could do back home.True those Costa Rica condos are cheaper than the comparable properties in Florida, California or New work. It is true that prices are skyrocketing due to the excessive demands. It is also true that a little moving around is sure to help you locate your dream Costa Rica real estate. But at the same time the reality is: it requires a good deal of investigation on your part to make a success of your condo purchase in Costa Rica. There are certain areas that require extra screening on your part prior to purchase and here is your checklist.1. Roping on to the right agentIt sounds cynical, but let’s start with this: never trust the smart real estate agents. Recommendations give a good head start in this direction. A reliable real estate agent will give you the right information about the value of the property, while the scrupulous one will tend to push overpriced properties.2. Go through the land recordsWhen you are exploring the market for Costa Rica condos, make sure the project does not fall within the boundaries of restricted zones or is a part of national park. Take extra caution in this respect, especially when you are mulling over the projects near the province of Dominical. 3. Consider the practical aspectsA property in remote, isolated place sounds too romantic, but it can be an unpractical decision of the worst kind. So far as the under construction Costa Rica condos are concerned, make sure that the developer has got the provisions for all basic amenities as electricity and water supply, before you make the down payment. It might create an added expenditure for you if you do not verify this point at the very beginning.4. NeighborhoodNeighborhood should be your prime concern when you are buying property in a foreign land. The local Costa Ricans are a friendly, welcoming lot. Still make sure to invest in Costa Rica condos that house large expatriate community on whom you can lean back at the times of needs. For the same reason, avoid the local neighborhoods, where the normal way of life may not be exactly up to your expectations or your tolerance level. For that matter, also check the crime rate in the area. As an example, there are pockets in the big Costa Rica cities like San Jose, where it will be extremely difficult for foreigners to live.  5. Make sure of the qualityWhen you are buying Costa Rica condos, hire an engineer to check out the constructional aspects of the building for you. Also take notice of such aspects as sewage system, plumbing, wiring and roof for leaks.Buying properties in foreign land comes with its pitfalls. But a good deal of research and a good broker can help you avoid them and make your overseas investment a success.

Are you currently thinking about buying your first house? Real estate is a fantastic investment. Don’t let the media hype fool you: low interest rates combined with reduced home prices make this an excellent economic environment for first-time home buyers. Here are a few tips to help you along the way.
The first and most important thing to remember is to buy only as much house as you can afford. Just because a lot of young people in your area are buying gigantic homes with acres of property and four car garages doesn’t necessarily mean they could afford their mortgages. All you have to do is look at the foreclosures situation to see examples of people who purchased more than they should have.
Adjustable rate mortgages, or ARMs, have been exceedingly popular in the last ten years. When the housing market was on fire a few years ago, banks were giving out loans to practically anyone, regardless of their income or credit.
ARMs made it possible for people to buy enormous homes even though they didn’t make a lot of money because they start out with low payments and then balloon as time passes. This is a big contributing factor to the current housing crisis. More and more people who had adjustable rate mortgage loans are defaulting as their homes go into foreclosure. I tell you this not to discourage you from looking at ARMS, but to help you understand the risks. In fact, FHA offers a great ARM that have 1% annual caps and a lifetime cap of 5%. This will beat any conventional ARM offered.
Because the banks are feeling the crunch, credit standards are being raised. If you are uncertain of your credit score, it is wise to check online with a company like Equifax, TransUnion or Experian to find out where you stand before you apply for a home loan. Clear up any financial loose ends and get your score looking the best it can before you start the home loan process. You’ll get a better interest rate and have more leverage with lenders. It may even allow you to get 100% financing. Yes, you can still obtain 100% financing and you don’t have to be a veteran.
As far as your down payment is concerned, you may want to come up with as much money as you possibly can. Why, you ask? PMI, or principal mortgage insurance, will add to your monthly payment until you’ve paid for twenty percent of your home. Even if you can’t get that much money together, and most first time home buyers simply can’t, try your best if you want to avoid PMI. As an added bonus, a nice down payment improves your chances of getting your loan in the first place.The good news is that your PMI might be deductible. You have to have an adjusted gross income of under 100K to deduct it all otherwise it will phase out when it reaches 110K.
You will pay half a percent to one and half percent of your loan value every year until it reaches approximately 75-80% of either the initial loan balance or of the market value. The rules are different for FHA and conventional loans and vary slightly. Generally,lenders won’t tell you that you’re eligible to get your PMI dropped from your payment. So, be sure to keep tabs on your remaining loan balance and contact your lender to get the PMI dropped. It will save you quite a bit of money in the long run.
Lastly, first-time home buyers will feel much better about purchasing their new home if they learn about the closing process and closing costs. We teach a first time buyer class where we cover this and much more. We recommend you seek out a similar class in your area.
The home buying process can be exhilarating and overwhelming, but the more knowledge first-time home buyers have on their side, the better off they are. Keep on learning and happy home buying! You will love your new home, and it will be one of the best investments you’ll ever make.

If you are currently in the market to purchase Austin real estate, you may be one of the many buyers who are considering the purchase of a condo for sale. As with any property, there are advantages and disadvantages to owning a condo. In most cases however, the benefits outweigh the disadvantages. Condo owners enjoy low-maintenance living, often with resort-style amenities which are typically only offered in more upscale single family home and golf course communities. Condo communities also usually have a ‘condo association’ which takes care of building and common area maintenance, as well as security on the property. If you are considering the purchase of one of the many Austin condos for sale, below are a few tips to help make the decision-making process easier.

Research the Location

One of the first things you will want to do is research the location. Location is extremely important to ensuring your new Austin condo will retain its resale value. If you purchase an Austin condo in a neighborhood that is already popular, you are almost ensuring the resale value and if you purchase in an up & coming neighborhood, you will likely do just as well. The latter is always a riskier strategy for purchasing an Austin condo for sale.

Avoid Cookie Cutter Austin Condos

Unless you plan on living in your new condo for the rest of your days, it is also important to avoid purchasing a condo without any unique features. These are referred to as “cookie cutter” because they look the same as a thousand other condos on the market. When purchasing your Austin condo, look for something that makes it stand out such as an amazing view, luxury items such as granite countertops or hardwood floors, or environmentally friendly or ‘green’ features like bamboo floors or recycled glass countertops. Anything that can make the condo unique will help its resale value in the future.

Old vs. New

Though it may always seem like a good idea to purchase a brand new Austin condo, instead of an existing condo for sale, this may not always be the case. You have to consider that it is more difficult to resell a condo in a brand new community if many of the units are still vacant. Though new condos are more likely to have the latest upgrades and amenities, an older condo may offer more appeal due to its location or the fact that the community is already established.

Condo Association

You must definitely find out what kind of condo association the community has. Find out what types of restrictions the community has as far as parking, guests, etc. It is important that you can live within the community rules to ensure a happy existence in your new Austin condo.

Following these tips should help you make the decision about whether or not buying a condo is the right choice for you.

Trying to sell real estate in a buyers market can be a tough and frustrating venture. When sellers greatly outnumber the buyers, competition can get fierce. Prices often drop dramatically and homes stay in the market for months. If you have to sell in a buyers market, be sure you know the tricks of the trade to make the best of a bad situation.
The Price is Right
Selling in a down real estate market requires that, you offer very fair and reasonable pricing for your house. If you overprice it, buyers will turn to nearby deals. If you under price your home, buyers will worry that there are some hidden defects in your property. Make sure you are appropriately pricing your sale by getting an appraisal from a certified appraiser. You can also have a real estate agent, to conduct a Comparative Market Analysis to determine how your place stacks up with the neighboring homes for sale. It may even save your time and score you a buyer to have a copy of the appraisal or analysis on hand as potential candidates come during open houses and other viewings. This will give them confidence that you are offering a competitive value.
Repair the Leaks
If you want to get a good selling price during a buyers market, you will need to have your home in a tip top condition. With so many options available, buyers will be looking for that “turnkey” home, one that is perfectly ready to move into. If there are any repairs to be done or any cosmetic blemishes, buyers are going to look for a deep discount in the price. Add to your selling profits by fixing up the home before you put it on the market. A few repairs and updates can add a lot of value to your home, usually much more than the money you spent to renovate it.
Get the Edge on the Competition
Beating out your competition might mean offering incentives. Think about throwing in added landscaping or the current home appliances into a sale. You could also offer to pay the buyers closing points, discount points or participating in a down payment gift program. Before you tack on the extras though, be sure to add them into the selling price of the house. That way you will have some cushion, when the buyer or real estate agent wants to negotiate down the price.
Have Realistic Expectations
Perhaps, the most important thing in selling in a buyers market is to set realistic expectations from the sale. Forget about the way things were during the last up market. So, what if homes were selling for twice as much? Times have changed and while you may not be able to make a killing on your sale as you would have back then, you can still make a profit that can help you in your next purchase or financial scheme. Take a look at, what homes are selling for in your area and realize that you cannot expect more than the current fair market value. Be sure to consider all reasonable offers and don’t let greed keep you from making a smart move.