Michigan Real Estate Blog

For the last five years, you could pretty much list a property on the market in any condition and have it sell. That is no longer the case, which means you need some tips.

Tips For Property Sellers

In recent years, selling a property was a breeze. As long as the structure was in any kind of decent shape, you could expect offers to rain down when it hit the market. Sometimes, you would close the sale before the property ever hit the market! To say it was a sellers market is a slight understatement.

As was inevitable, the real estate market has cooled off a bit. From a historical perspective, it is still red hot although not as hot as the last few years. As a seller, this means you need to start focusing on the fundamentals of selling your property. The following tips should get you focused.

Purchasing a property is an emotional decision. To this end, you need to position yours to captivate potential buyers. In this case, this means giving it a makeover. For instance, you should:

1. Cut back the forest known as your yard.

2. If your landscaping isn’t that great, spend the money on new plants to make it look appealing. The buyer has to see themselves living in the property, so make it a paradise.

3. Clean the roof and fix any loose shingles, etc. Buyers and appraisers always look at roofs closely.

4. Clean up any paint issues on the interior of the property including behind doors, in closets and so on. This may sound odd, but buyers will look in every little cranny.

5. Clean up any paint issues on the exterior of the property. Obvious spots include the sides of the home and behind any plants that sit up against the wall.

6. Clean your driveway and garage floor. Nasty oil spots take away from the appearance of your gem. A super clean driveway and garage floor is a sign of a seller that has made a major effort to maintain the property, a factor buyers will view very favorably.

7. Finally, list it for sale on the Internet. A vast majority of buyers now surf the web looking for their dream residence. If your property isn’t listed, they will not see it.

At the end of the day, all of the above boils down to one real theme. What would you look for if you were out shopping for a property? Make a list and then analyze your property with an eye towards those items.

In the last few years, homes have became increasingly owned by single homeowners. Many single people are realizing that there are many benefits to owning a home that aren’t just for married couples.

Single homebuyers face unique challenges in buying. They have to compete with dual-income households, which can be tough when the market is hot and competition is fierce.

But whether you are single or married, some real estate basics hold true. For example, the biggest decision factor for both continues to be the old and true — location, location, location. The neighborhood, price, and closeness to work, school, family and friends are important factors to consider in a home.

With the ever-present economic uncertainty and high home values in many areas, many single homebuyers wonder if they can afford a home. With rising interest rates, this is a valid worry.

In many areas, inventory is slim. Sellers are receiving multiple offers. If you find a home you like, you better be ready to jump on it.

Be ready. Spend time getting your finances in order. Compare different mortgages and lenders so that you find the best plan for you and your financial situation. Go ahead and get pre-approved once you find the right lender. Not only will you know exactly how much you can spend, but you have an extra edge when placing an offer. Most sellers in a hot market only accept offers from pre-approved buyers.

Make sure you know what your requirements are before you begin looking. Think about the square footage, number of rooms and neighborhoods. This will save you time in your search by narrowing down the properties to only the ones that fit your needs.

Consider buying a condo or townhouse. Usually more affordable, this type of housing offers little upkeep, close neighbors and community facilites, such as a pool or workout room. But keep in mind that condo living means little privacy outdoors and virtually no back yard. If you like to entertain outside, it may not be for you.

Keep in touch with your agent throughout the search. Let your agent know that you are a serious buyer. Make sure that he or she understands your needs. You want your agent to call you first when a new listing hits the market. Don’t be afraid to search the MLS listings online and then call your agent with any properties you are interested in.

Remember that there is no such thing as a perfect home. Decide what aspects of a home are most important to you. You may find that you are willing to sacrifice, for example, an extra bedroom for the perfect location close to work.

Base your bid on what you want to offer, not what you think other people will offer. Don’t let yourself be stretched farther than you are comfortable with just to get the home.

Don’t be shy. If you find a home that fits your criteria, jump on it. When markets are hot, as many are in the metro areas, you can loose a home by hesitating. Ask your agent how long you have to decide and take their advice. If they say you have to decide within a few hours, you have to decide.

It is time. You are prepared to buy yourself a nice home. You have a stable job. Money is flowing in. You have your life completely together so now you can afford to shop for a home and start a family.

PUT ON THEM BRAKES!

Back up for a moment here. Did you think about your long-term goals? Did you include in those goals room for emergencies? I didn’t think so.

Well, don’t be the next knucklehead on the streets that believes bad stuff only happens to other people. God didn’t give you a tag that stated you have a better future than the rest of us ahead. Instead, you are at risk of disaster just as the next guy on the street.

Therefore, now we need to save money and to think real estate and long-term goals logically. There is nothing wrong with finding a home that you can own. First, however you have to think of ways to save money, think about your long-term goals, and wait…

Did you remember to make a list of real estate agents? Did you know that real estate agents, i.e. some will work hard to find you the best deals and will help you find a mortgage loan? You save money!

Just a tip to get you thinking – First, we are going to talk about those long-term goals. You want to think of those, since disaster could hit you at anytime. NO, I am not hoping you have a disaster, rather just concerned about your financial future. For Pete Sakes, give me a banana.

Long-term goal in real estate planning: Now you have to work with me on this one. I have no idea what, your long-term goals entail. Unfortunately, I only read minds that don’t argue back and those who always say I’m right.

Long-term goals: Mortgage Insurance: What about insurance, did you think of this? Oh, you are going for the life plans that give you minimal coverage because it is cheap. Well, did you not know that some mortgage insurance plans would cover you in the event disaster occurs? No, this is not just a plan for disaster, you have health insurance, dental plans, home coverage, disaster backup, and other coverage in some of the real estate plans offered online. Buzz on over to some of the mortgage insurance companies and review the types of coverage. The disaster policy may cover you in the event of fire, theft, burglary, etc. You can save money by getting quotes at the real estate sites online. The quotes will help you to compare the best deals on mortgage insurance. Look, for policy features, such as premiums, death benefits, duration, saving components, dividends, etc.

Darn, look at us. We are jumping the gun. You haven’t even bought your home yet. Well, let’s travel to some real good real estate web sites online and Honky Tonk around the net to find some of the best deals in real estate. Don’t drink too much either I am talking about Honky Tonking to save money in real estate.

Real estate agents are people that manage, organize, and take hold of the risks in buying and selling homes. Some of these people make up brokers. Brokers will represent you. Brokers will assist you with finding a loan that meets your budget; help you through the closer and contract signing once you find a home. Brokers walk you through list agreements and stand behind you through to the finish to make sure that you save money, and complete the buying a home process without legalities arising or other complications occurring.

Now you can drive on to find your own home, and you may even get a deal, but who is Sam Crinkle’s name is going to walk you through the buying process and make sure that you are not buying a clunker. Brokers in real estate will also help you deal with your plans. If you have a budget setup, a qualified broker will assist you in meeting this budget. Brokers have a list of homes for sell, so it will take no time at all to find homes that meet your criteria. In addition, brokers in real estate will negotiate pricing of homes that interest you. You can save money big time by investing your time with licensed brokers in real estate.

Now back to your long-term goals. Always plan for disaster mister: Because it could happen to you at anytime…you did not receive a badge from God to cover you in the event of disaster. Take time to explore the Internet and get quotes at real estate sites to find deals. Won’t this consume my time?

Time is money honey. Time? you will spend a lot of time browsing the streets looking for a home. Using the Internet however will save you time and MONEY, because you have the world at your hands. You can use quotes at real estate sites to save money. In addition, you won’t be running up your gas or wearing down your vehicle. Did you think of this? Now what did you say? Won’t this consume my time? Well, it is your choice, but I am busy helping you to save money in real estate.

Commercial Real Estate refers to the property that has potential to generate extra income for the owner of real estate. Commercial real estate generally includes office buildings, retail properties, apartment units, condos and raw land. Every property that can produce revenue for the owner is known as commercial real estate. It doesn’t include habitable real estate like houses or apartment buildings.

In 21st century, large number of people is generating income with commercial real estate. Commercial real estate business is based on certain principles. These principles are generally same for property owner, developer as well as for commercial real estate agent. Commercial real estate agent helps you to identify the best features of commercial real estate agent. Real estate agent enables you to make a finest deal of commercial real estate. Commercial estate agent is helpful to both buyers as well as tenants.

You should choose best commercial real estate as per your requirements. Choose your property at best location that has great future. Commercial real estate at good location will offer more benefits in the coming days. You’ve to choose finest piece of land that you can use efficiently. You may select commercial real estate nearby high traffic areas that can be easily used for full-service restaurants, hotels, stores or other shopping malls.

Investment in commercial real estate business is the best way to get more revenues. Always keep in mind that a right time investment is the best opportunity to earn more profits. You should consult financial advisors that will provide help to find the best commercial real estate. Investment in commercial real estate is good for large as well as small-scale businessmen.

Buyers should check the reputation of commercial real estate provider. Before any type of agreement or purchase, they should check rate, terms & conditions, and other essential aspects of commercial real estate for the best deal.

There are several shows on television that feature people buying properties and then flipping them after minor repairs. Many people make a profit doing this, but if you really pay attention, you will often only see what the house could make the owners. The shows often leave out when and for how much the home sold for.

Many of the richest people in the world started out in real estate. That’s why real estate investment is so popular. But what are some essential things you should know before jumping into real estate?

1. Know how market timing works.

This means that you need to not only research how market cycles work, but that you need to sit back and watch them for yourself. The fact is that markets go up and markets go down. A lot of successful investors aren’t looking for a three-month buy and flip. They buy when the market is low and sell when it is high.

2. Know how to analyze real estate numbers.

You have to be able to identify all of the factors that are affecting your profit.

There are four major parts of real estate investing: cash flow, appreciation, loan reduction and tax benefits. You need to understand how the four factors work together to produce a rate of return.

Real estate isn’t simply making you a profit when it appreciates. And it isn’t necessarily loosing money when it depreciates.

3. Know the economics in your area.

You have to look beyond the simple growth of the neighborhood you are investing in to the overall health of the city, state and country. For example, if interest rates are rising, you need to understand that borrowers are being cut out of the market.

The six aspects of economics you must understand are: mortgage interest rates, affordability indices, supply and demand, demographic information, commercial real estate and the job market.

It helps potential investors to take classes in both macro and micro economics. Macro will help the investor understand the large forces that impact real estate, such as recessions, national interest rates, war and demographics. Micro will look at individual sectors and focus on the local real estate market, such as local disasters, local recessions, unemployment rates, supply and demand, new housing starts, housing for sale and types of vacancies.

There is a lot that you need to know before you jump into being a real estate investor. Yes, if you are just buying and fixing up and selling one house, you have the potential to make money. But if you plan to do this as an investment, you need to obtain the necessary education. Otherwise, you are gambling with your money.

So you’ve seen your umpteenth infomercial with the guy in his neatly pressed button-upped white T-Shirt grinning ear to ear waving his rock-solid no-money-down rags-to-riches real estate investment course for 3 easy payments of a gazillion dollars (but only if you call now) and now you are thinking, “wow this looks like a great deal, I better get it fast before the special offer expires.” You notice how there’s always a special offer? Anyway, I am not saying this guy isn’t telling the truth, however regardless of which course or school of thought you buy into there are several key areas that one must avoid when engaging in any real estate related transaction.

Pitfall Number 1: Don’t Overpay!

The whole point in investing is to find properties that are undervalued. How does one find out what is undervalued versus overvalued? Without getting into technical details, the bottom line is you need experience. Yes much like shopping for anything else, real estate is essentially one of the highest ticket items in the shopping center of life. It’s advisable to stick with one market, perhaps the one closest to you in proximity as a starting off point. Through your experience and asking the right questions, you will eventually have a feel for the pulse of the market you are looking after, and of course identify what is considered a good buy.

Pitfall Number 2: Know the Market

Yes, you are actually going to have to do more work! This part is really common sense though, but executing it where the beauty and the payoff comes in. How do you make money in real estate? The most basic way is to buy low and sell high. So from the first step, you have identified general trends in the value of homes, and are pretty good at spotting undervalued homes. Assuming you acquire that home, you may want to profit from it by selling it off to someone else for a higher price. How can you do this? Well there are many ways. For one, most markets appreciate in value over time so if you want a longer term approach that will work. Making upgrades to the property will automatically raise the price of the home as well. Think in terms of what the market wants, not what you personally want. You aren’t the one buying it; you are trying to sell it to someone else for a higher price than you bought it.

Pitfall Number 3: Know Your Budget

It may be a fine philosophy to go through life on a whim, but real estate is serious business, and thus diligent financial planning and budgeting is critical to your success. Don’t worry you don’t need to be a finance geek, however you need to be disciplined and know your budget from the onset, or you may be finding you are learning that you need to make certain renovations or upgrades, and didn’t anticipate it going over to a certain cost. Think ahead as to what is needed before actually going forth with investing in real estate.

Real estate investing is always good and sometimes it’s red hot. When it’s hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education.

It’s startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the “sizzle” and make profiting from real estate sound easy. The truth is that it’s simple, but not easy.

Here’s a quick plan that will enable anyone to begin building financial independence.

There are basically four steps to investing in single family homes:

1. Buy homes below full market value. Yes, people really do sell homes for less than the home’s full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price.

The successful investor learns to find financially distressed home owners who have no choice but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit.

Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all cash offer.

2. How do you find motivated sellers? You work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, is the one that was proven 75 years ago by the Fuller Brush company; door to door sales.

You are selling your skill as a home buyer to people who must sell. Your are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will learn more and buy more homes quicker than any other method. However, most people just won’t walk door to door for three or four hours per week. OK, there are other ways.

You can watch public notices for the announcement of foreclosure sales. Meeting with a home owner right after they’ve received a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site.

You can telephone the names found in these notices or, and this is the least time consuming, send a postcard expressing your interest in buying their property. It will produce buying opportunities, just not as many as personal contact.

3. After you’ve found a motivated seller you must understand how to frame offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller.

The home owner is in a tight spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start.

No investor can afford to leave cash in every deal. No one but Bill Gates has that much available money. You must use creative techniques like, leases, option and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in book stores or on EBay. The same education that seminars sell for thousands of dollars.

4. You make your profit when you buy! Never make a purchase until you’ve carefully determined exactly how you will get to your profit. If you hold it as a long term investment will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy.

There you have four steps that even a part-time investor can execute in three to four hours per week. What’s the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be well on your way to financial independence.