All posts by Tomie Raines Housing News

Five Ways to Discourage Burglars

About the house...

camera.largeThere’s more you can do to discourage burglars than an alarm system when you’re away. Burglars look for easy targets, where they can get in and out quickly. They pick a house and watch it to learn your comings and goings and for signs that you’re gone. So what can you do? Make it harder for burglars.

Smart Phone Security. Make cameras visible and install them in more places than the front door. You can access your security cameras anytime, anywhere and get alerts when visitors are detected. You can store video clips and recorded audio to the cloud.

Neighbors. Meet your neighbors and exchange numbers. Watch their homes when they’re gone and ask them to watch yours for any suspicious activity. Have your neighbor pick up mail, flyers on your door or packages left on your doorstep.

Trash. Burglars look through trash for valuable personal records and through empty boxes to learn about purchases, such as pricey new electronics. Make sure to shred important documents you wouldn’t want them to get ahold of.

Lighting. Motion detector lighting is startling and may discourage a burglar from entering your home. It’s worth it to keep your home well-lit with landscape lighting that illuminates windows, doors and walkways. Use on-off light timers, T.V. flicker simulators and large dog bark recordings to simulate that someone’s at home.

Vehicles. Many burglars break into cars to get addresses and other information. Keep your car and glovebox locked. Don’t leave your garage opener visible. Instead, pair your opener with your smartphone so only you can access your home.

It’s Time for Homebuyers to Catch a Break

Buyer Information, Market Update

Buyers who have been discouraged about purchasing a home because the housing market is too competitive, will like the latest 2022 forecast update from Realtor.com.

Inflation, higher home prices and higher mortgage rates are impacting affordability, which has caused many homebuyers to stop looking. In April 2022, existing home sales dropped 2.4% from March, and 5.9% year-over-year, partly due to mortgage interest rates crossing 5% for the first time in decades. Meanwhile, home prices in April rose 14.8%.

Many sellers are putting homes on the market in an effort to cash in before prices possibly begin to fall. Active listings, or homes listed for sale, are anticipated to grow 15% year-over-year in the second half of 2022. Home builders have stepped up production by about 5%, so buyers will have more inventory to choose from. Home sellers will have to become more competitive which will invite wait-and-see homebuyers back into the market. Housing sales volume for 2022 should be the second-highest in 15 years, even though a decline of 6.7% from 2021 is anticipated.

With unemployment rate near 50-year lows, wage growth should rise 3.8%, and flexibility to work remotely, even out of state, will continue. First quarter data showed that 40.5% of Realtor.com® home shoppers viewed listings located outside of their current state, up from 33.4% in 2020.

That said, affordability will remain an issue for many homebuyers as home sales prices rise 6.6% and mortgage rates reach 5.5% by the end of the year.

Market  View – September 1, 2022
• 714 currently listed homes for sale in the five county greater Lansing area.
• 296 homes with accepted offers. Awaiting inspections and/or appraisal.
• 487 homes listed as Pending. Have completed inspections and will soon close.
• 4553 homes that have closed since January 1, 2022.
• 7241 homes that have closed in the past 12 months.

Mortgage interest rates
30 year fixed – 5.55% ($5.45 per $1000)
15 year fixed – 4.85% ($7.59 per $1000)

 

Can Someone Steal Your Home Through Title/Deed Fraud?

About the house..., Finance and Taxes

With the information available in public records, cunning thieves may be able to forge documents that will give them access to the deed and title to your home.  This fraudulent ownership may allow them access to the equity in your home and possibly sell the home to someone else. While this seems highly unlikely, it is not impossible, and there are ways for homeowners to protect themselves.

Do you need to spend money on a service?

Fraudulent-Quitclaim-Deeds (1)These ads claim that anyone with forged signatures and fake IDs can file paperwork with the county’s register of deeds to transfer ownership of your property to themselves or a third party.  They then use your home as collateral against a large loan to steal your equity.  When you fail to make payments on the loan, the lender can place a lien on your home preventing you from selling, refinancing, or passing the home on to heirs.  As the ads state “Don’t lose your home or life savings.”

Home Title Lock is one of the services that says it will monitor your home’s deed 24/7 to prevent title fraud; it costs $15 a month ($150 annually).  But you can protect yourself for free.  Many Michigan counties now provide a consumer notification service.  You simply register and you will quickly receive an e-mail or text any time a document is recorded on your property.

Ingham County has a free deed fraud alert system in place.
Property Fraud Alert

Eaton County has a program called Fraud Sleuth.
Eaton County Fraud Sleuth

Clinton County uses Fraud Guard.
Fraud Guard

You don’t need to pay a company to protect you from criminals who put their names on your home title. You can protect your home for FREE.

Surprising Features Homebuyers Want in 2022

About the house..., Seller Information

Picture1Virtual interior designer/home stager Stuccco.com has compiled a wish list from numerous online sources that experts say homebuyers want in 2022. Many popular features aren’t what home sellers may think. Before you upgrade your home to sell, consider these top five homebuyer preferences:

  • Laundry rooms
  • Exterior lighting
  • Ceiling fans
  • Patios or decks
  • Walk-in pantries

Laundry rooms. Homebuyers don’t want to go down to the basement to do laundry, so make room somewhere on the first floor. Including a built-in table for sorting is a good idea. Realistically, many Lansing area homes have a basement laundry.  Paint the surrounding wall a light color and make certain the area is well-lit.

Well-lit outdoor living spaces. Homebuyers want exterior lighting (87%), patio (82%) and a front porch (81%), a rear porch (75%) or a deck (75%). Landscape lighting adds a luxurious glow to outdoor spaces as well as an extra element of security.

Ceiling fans. With the sudden rise in energy prices, it’s not surprising that homebuyers want lighting fixtures to do double duty as an air conditioning aid, especially when cooling or heating a larger home.

Walk-in pantries. Homebuyers want to be able to stockpile food and paper goods. They want to open the door to the pantry and see at a glance what’s on hand.  Not everyone has a large enough kitchen to support a pantry.  Consider reorganizing a nearby closet that currently houses miscellaneous items.

Homebuyers also prefer two-sided kitchen sinks over farmhouse sinks (81%.) They want a full bath in the living area (80%) and kitchens open to the dining room for less formal dining (85%.)

Homebuyer preferences are changing home design. The National Association of Home Builders reports that new home buyers want bigger homes which now average 2,524 square feet.

 

Buyers and Sellers Adjust to Changing Interest Rates

Market Update

With home sales, the purchase price of the home means something different to sellers and buyers. Sellers are concerned with how much their home will sell for.  Buyers purchasing with mortgage financing are concerned about budgeting for the monthly payment.

For Buyers interest rates greatly impact the affordability of a home.
Mortgage interest rates below 3.5%, which had become a standard for the past five years, began to rise at the beginning of 2022.  As we close out the second quarter of the year (June 30) interest rates have escalated to 5.81%.

A rate of 3.5% on a 30-year fixed rate mortgage translates to $4.49 per $1000. A buyer borrowing $200,000 at 3.5% this past December would have budgeted for a monthly loan payment of $898. Borrowing the same amount today will result in a payment of $1175. A difference of $277.

For Sellers, higher rates will push some buyer out of the market.
Rising interest rates make it more expensive to get a mortgage. This lowers demand and competition for homes. As cautious buyers rethink what is affordable, sellers may be presented with fewer offers, which may not be excessively above asking price.

However, sellers shouldn’t worry. There will be a short slowdown as buyers adjust to the new rates, but there are still too few available homes to satisfy demand. Buyers facing ‘mortgage shock’ will also see increasing rental rates and again be budgeting for a home purchase.

Market  View – July 1, 2022
• 556 currently listed homes for sale in the five county greater Lansing area.
• 348  homes have accepted offers. Awaiting inspections and/or appraisal.
• 482 homes are listed as Pending. Have completed inspections and will soon close.
• 3244 homes have closed since January 1, 2022.

Mortgage interest rates
30 year fixed – 5.81% ($5.87 per $1000)
15 year fixed – 4.92% ($7.86 per $1000)

How Will the Russia-Ukraine War Impact U.S. Housing?

Market Update

7957715.largeAs Russia’s invasion of Ukraine continues, the real estate industry in the U.S. is beginning to ask questions. How will the war affect the economy and how will it impact the housing market? At the very least, global conflict is unnerving, but is there hidden opportunity for American homebuyers?

According to REALTOR Magazine, stocks and cryptocurrency have been volatile. As sources of payment for homes, these may impact the real estate market.  Inflation is at a 40-year high, and only likely to get worse. Household budgets are already being tested with rising oil, gas and food prices. Rents, home prices and new construction are more expensive. Lumber prices have soared 40% in the last year. Higher mortgage rates will slow homebuying demand, says Robert Dietz, chief economist for the National Association of Home Builders.

When consumers at any level get nervous, they tend to curtail spending, particularly for large purchases like homes. “The impact on the U.S. housing markets from the Russia-Ukraine conflict has been muted so far,” George Ratiu, manager of economic research at Realtor.com, told Fortune.com. But an escalation of the European crisis could lead to more trade route and supply chain problems and higher prices, he said.

As investors reallocate their portfolios toward U.S. Treasuries, it could cause interest rates to fall. But if oil prices remain above the $100/barrel level, inflation continues, and interest rates and adjustable rates increase, the impact on the housing market could be negative, causing home sellers to lower prices.

Housing Inventory Market View – June 1st

Current Lansing Area Sales Statistics, Finance and Taxes, Market Update

Rising mortgage rates and record home prices have become the norm for the opening months of the spring housing market. Frenzied buyer demand for the few homes offered for sale since mid-March has pushed purchase prices 20% above what they were listed at.

Sellers offering homes priced below $300,000 have been receiving multiple offers above asking price with escalation clauses and appraisal guarantees.  An escalation clause provides that the buyer will pay $2000 more (example) than any other competing offer up to a set price, often 20 to 25% more than the asking price.  An appraisal guarantee assures that the buyer will pay the difference between the mortgage appraisal and the offered price. With many offers, buyer have even been waiving the inspection option.

Interest rates on a 30-year conventional mortgage have risen from 3.5% at the close of 2021 to between 5% to 5.4%.  However, increasing housing prices and interest rates has not slowed down the Lansing area real estate market enough to be noticeable.  This is probably due to rising rental rates continuing to make home ownership the better option.

Market  View – June 1, 2022
• 458 currently listed homes for sale in the five county greater Lansing area.
• 302  homes have accepted offers. Awaiting inspections and/or appraisal.
• 476 homes are listed as Pending. Have completed inspections and will soon close.
• 2486 homes have closed since January 1, 2022.
• 7331 homes have closed in the past 12 months.

Mortgage interest rates
30 year fixed – 5.1% ($5.43 per $1000)
15 year fixed – 4.31% ($7.55 per $1000)

About Earnest Money Deposits

Buyer Information, Seller Information

When a buyer and seller agree on a purchase price and terms, the buyer7856255.large shows the seller a sign of good faith in the form of earnest money. This money, typically 1% to 3% of the sales price or whatever is customary for the local market, is deposited with an escrow agent or title company, a neutral third-party that serves to finalize the transaction for both sides.

Earnest money is designed to protect the seller. It shows the buyer is serious, but if the buyer doesn’t follow through with the contract, the seller could lose valuable marketing time when the transaction doesn’t close. They’ll have to start all over again to market the home. There are also opportunity costs – the seller could have possibly sold the home to a different buyer and perhaps for better terms. For that reason, the seller can keep the earnest money.

This also protects the buyer. The buyer can get out of a sales contract and get their money back if contingencies outlined in the purchase agreement aren’t met. Typical contingencies are that the buyer’s lender agrees to make the loan, the appraisal meets or exceeds the sales price of the home, the home passes inspection or that the buyer sells their current home before closing on the seller’s home.

Earnest money paid upfront in the transaction means the buyer has to come up with less money at closing or the deposit can be used as part or all of the down-payment.

Housing Inventory Market View – April 1, 2022

Finance and Taxes, Market Update

This is no joke! Limited housing inventory will continue into the Spring of 2022.

Through the month of March, homes that would have once been considered overpriced have received multiple offers, exceeding asking price, within the first two days of having been made available.

It remains to be seen if rising interest rates, now almost a full percentage point above last year’s rate, will influence on buyer on upcoming offers.

Market  View – April 1, 2022
• 351 currently listed homes for sale in the five county greater Lansing area.
• 255  homes have accepted offers. Awaiting inspections and/or appraisal.
• 370 homes are listed as Pending. Have completed inspections and will soon close.
• 803 homes have closed since January 1, 2022.
• 7485 homes have closed in the past 12 months.

Mortgage interest rates
30 year fixed – 4.42% ($5.02 per $1000)
15 year fixed – 3.63% ($7.21 per $1000)

Extend The Lifespan Of Home Fixtures And Appliances

About the house...

april applianceSomething goes wrong with the air conditioner or the toilet clogs when you least expect it. If you’re not a Mr. or Ms. Fixit, you’ll have to go through the expense of calling a plumber, electrician or appliance expert to solve the problem. Unless a part has worn out, pilot error (that’s you or someone in the household) caused the malfunction.

Appliances and fixtures can be temperamental because they’re only designed to work under certain conditions, so take time to learn a little about how each product functions. Even if you don’t think you’re handy, you can do a little preventive maintenance and make a quick fix to handle minor problems.

To extend the life of your appliances and systems, here are 10 helpful suggestions:

  1. Keep all booklets, warranties and operating instructions for every system and appliance in one convenient place.
  2. Follow suggested scheduled maintenance, such as bi-annual checkups for air conditioning systems.
  3. Keep supplies on hand – a plunger, drain cleaner, filters, etc.
  4. Change heating and air filters once a month.
  5. Clothes need room to tumble to get clean, so don’t overload washers.
  6. Empty dryer filters with every load.
  7. Don’t put potato peelings, fibrous vegetables such as celery, cooking oil or grease down any drain or disposal.
  8. Run water before during and after using the disposal.
  9. Put a mesh trap in your shower drain to catch hair and soap buildup.
  10. Paper towels, Kleenex, baby wipes and cat litter can quickly clog a toilet, even if the box says the contents are safe to flush.