Category Archives: Uncategorized

Sellers: Don’t Be Surprised by Repairs

Buyer Information, Seller Information, Uncategorized

Repairs or replacements that the homebuyer requires to be completed before closing on the sale of your home can blindside you if you’re not prepared. While any unforeseen expenses are an unwelcome surprise, you’ll still have to fix the problems or risk letting your buyer out of the contract and having to disclose the problems to future homebuyers.

Homebuyers have the right to have the home they’re buying professionally inspected. The purpose of the inspection is to inform the buyer as to the condition, age and likely lifespan of major systems and appliances in the home. As a contingency in the contract, the buyer has the choice to proceed with the contract or ask the seller for repairs or replacements. This is fair because many issues with a home can’t be seen with the naked eye. An inspection gives a rough idea of future expenditures; if there are more problems than the buyer is willing to allow, the transaction will be in jeopardy. The buyer can’t help but wonder what other problems may come to light about the home.

Obviously, the less the buyer finds wrong, the smoother the transaction will be. Before you put your home on the market, hire a licensed home inspector to alert you to unknown problems and repair or replace them so the buyer has no misgivings. You’ll also be able to ask a higher price for your home when it’s in excellent condition.

Housing Inventory Market View – March 1, 2022

Uncategorized

Limited housing inventory will continue  to plague the real estate market well into 2022. Buyers faced with few suitable choices will need to make creative offers in multiple offer situations. Banking sources indicate that the Ukraine war will have little effect on mortgage rates.

Market  View – March 1, 2022
• 360 currently listed homes for sale in the five county greater Lansing area.
• 226  homes have accepted offers. Awaiting inspections and/or appraisal.
• 400 homes are listed as Pending. Have completed inspections and will soon close.
• 799 homes have closed since January 1, 2022.
• 7455 homes have closed in the past 12 months.

Mortgage interest rates
30 year fixed – 3.89% ($4.71 per $1000)
15 year fixed – 3.14% ($6.99 per $1000)

Is It Wise to Refinance Now?

Finance and Taxes, Uncategorized

Over the summer of 2020, refinances of existing mortgages rose over 200 percent
Driven by the lowest interest rates and the highest home prices in recent history, many homeowners are opting to skip the frustrations of moving in favor of lowering their current monthly mortgage payments.

Reduce your monthly mortgage or remove PMI
Trading your current 30-year mortgage for a new 30-year loan makes good sense when you can greatly reduce your monthly mortgage expense if you plan to remain in your home for more than three years.  It can also be a good idea if you have an FHA loan with private mortgage insurance (PMI) that can only be canceled by refinancing if you have more than 20 percent equity, you can refinance into a conforming loan with no PMI due.

When refinancing is a bad idea
Refinancing could be a bad idea if it’s done for the wrong reasons, such as taking cash out of your home to consolidate credit card debt.  Refinancing comes with considerable costs and fees, typically 3 to 6% of your loan amount, which can take as long as three years or more to pay back.  If you decide to move sooner than three years, entering into a new loan to pay debts may cost you money.  Also, you’ll need to avoid the temptation to “reload” your paid-off credit cards with new balances.

The best plan is a healthy break-even point where the costs of refinancing are covered by the monthly savings provided by your new loan.  Explore the numbers with your lender before deciding.

What the Fed’s Interest Rate Cut Means for Mortgage Rates

Finance and Taxes, Uncategorized

The Federal Reserve recently lowered its interest rate to a range of 1% to 1.25% due to the risks the COVID-19 coronavirus outbreak poses to the economy – but this does not apply to mortgage rates.

The Federal Reserve frequently adjusts the short-term interest rate it charges to banks and other financial institutions.  Mortgage rates are based the long-term bond market, which include Municipal bonds, Corporate bonds, and U.S. Treasury bills,  not the interest rate offered to financial institutions.

Mortgage rates have recently dropped to 3.26% (30 year fixed mortgage) as a result of investors pulling out of volatile markets and embracing the safety of bond markets.
Lower mortgage rates have already caused increased refinance activity and demand among home buyers continues to remain high, in spite of the short supply of homes for sale.

Be aware that a home equity line of credit has nothing to do with mortgage rates. These are adjustable-rate loans based on the prime rate.  However, you may see a drop in these interest rates, since the prime rate does closely follow the Federal Reserve rate.

5 Advantages of Selling Your Home in The Winter

Uncategorized

winter-home-sale

In the winter the housing market naturally slows down. Because of this, many home sellers follow suit and will either pull their listing off the market to be listed again in the spring, or hold off on putting their home on the market at all. However, even with the winter months being notoriously slow, it could be an advantageous time to put your home up for sale.

1. Less Competition
In the winter months, the number of houses listed on the market drastically drop. This is because of a number of different reasons including the weather, the holiday season and other factors that typically put winter into a slow season. However, this could be viewed as an advantage to some home sellers. Placing your home for sale in the winter drastically reduces competition and appeals to homebuyers that are ready to buy now.

2. Motivated & Flexible Buyers
During the winter season you’ll typically be able to find motivated and flexible homebuyers. If a homebuyer is moving because of a job change for example, they need to purchase a home now in order to begin their new position. Home buyers may be more flexible during this time as well because of the time off they have during the holiday season. This will allow them to spend more time working with a realtor to view available houses and make a strategic offer. Motivated and flexible buyers mixed with low competition will mean higher return on your property.

3. Home Offers Consistent With Asking Price
Because the market is less competitive in the winter months, there’s a chance that a motivated buyer will be more competitive with their offer. If they have less options on the table to choose from, and have really fallen in love with your for sale home, they are more likely to give a home offer closer if not at or above the asking price. Use the low competition of homes in the price range of your home to your advantage to get a strong offer.

4. Higher Return For Heating Tune-Ups And Replacements
If you’ve spent time and money updating or replacing your furnace or other heating system, this big ticket update will be more top of mind for buyers. During cold winter months home buyers are more conscious about what type of heat the home has and how up to date the heating system is. Because of this, selling your home with a recently updated heating system will give you a greater return on your investment in the winter months.

5. Appeal To Buyers With Cozy Home Staging
Home staging is simple in the winter months. This time of the year homebuyers are looking for a warm and cozy feeling in the homes they walk through. Adding fabrics, candles and lighting the fireplace are quick and easy ways to set the stage for an effective home walk through.