Real Estate Information Archive

Home Improvements to Help You Sell...

Kitchen makeover. The kitchen is the most popular room in the house to remodel. Most in the industry will tell you money spent upgrading a kitchen produces the highest return on investment. Hot makeover trends include adding dual sinks, cooking stations, bigger dishwashers, under-cabinet lighting, warming ovens and wine coolers. Also consider upgrading all major appliances.

Bathroom fixer-upper. Upgrading a bathroom is another sound choice and will often provide a significant return on investment, as large bathrooms typically top the list for those seeking a new home. Adding skylights, sunken whirlpool baths, or larger showers are other attractive selling features.

Cosmetic touch-ups. A paint job, new double-paned windows, or new carpeting will increase the price of a house virtually dollar-for-dollar. It is important to make sure your home standards are in-line with other houses in the neighborhood. Neutral colors and no clutter make a world of difference! It is vital to look after minor problems such as a leaky faucet or a loose cabinet to guarantee your house doesn't experience any long-term damage. As soon as you notice a problem, fix it sooner than later to help avoid a larger expense down the road.

Home improvement professionals for hire. Whether you need an architect, gardener, interior designer or contractor, it is always important to do a background check prior to hiring a professional. Get references from family or friends and then interview your selection. Important qualities to look for are trust and experience, not initial price.

Is now a good time to buy an investment property?  The dollars and cents answer is probably yes... with property values and interest rates at an all time low there has never been a better time to buy.  In addition, there is a large demand for quality rental properties given the number of families who are unable to buy because of credit issues. 

The one thing to carefully consider is whether you have the time and skill set to be an effective property manager.  I have often heard real estate investment income referred to as "passive income".  Take it from someone who has owned and managed rental properties for ten years, nothing comes for free.  Getting and keeping good tenants is a constant battle, not to mention the necessity for repairs (always at the most inconvenient time).  That being said, if you are willing to spend some time and energy and treat your property investments like a part time job, it can be a very lucrative long term investment. 

If you plan to investigate purchasing a rental property I strongly suggest finding an experienced local Realtor who not only understands property values in your area of interest, but has local know-how about the rental market (preferably someone who has managed their own rental properties).  Making the right decision on which property to purchase is more than half the battle.

A cash investment in real estate can easily offer Return on Investment numbers exceeding the stock market.  If you think you are good landlord material, get shopping! There is no time like the present to buy your first rental.

Today I am spotlighting the Dundee Ridge Community in Dundee, Michigan.  This community has experienced turbulent property values over the past several years.  Many times in the past several years there have been ten or more homes available in the community and values absolutely plunged between 2005 and 2010.  Fast forward to 2011...we can't keep inventory in Dundee Ridge.  Everything I have listed in the sub in 2011 has sold for very close to full asking price within the first 30 days on the market.  We seem to have hit upon a hot seller's "micro-climate" specific to this area.  Home values have not only stabilized but I am seeing good increases.  The average sale price for homes in Dundee Ridge in 2010 was just under $122,000.  For homes already sold in 2011 that figure is up to nearly $125,000.  Better yet, there are currently 5 pending sales in the development with an average list price of $129,000.  For a market that is supposedly "stable" or "declining" these are great numbers.    It's great to be able to report some good real estate news! Things are definitely looking up for residents of Dundee Ridge. 

What is a short sale? A short sale happens when a seller must sell their home for less than what is owed to their mortgage company or companies.  For instance, if a seller owes $130,000 to their first mortgage company and $25,000 to their second mortgage company for a total of $155,000 and their home is worth $105,000 in today's market.  To qualify for a short sale a seller must show that they have had some sort of hardship leaving them unable to make their payment obligations.  Hardships would include illness, loss of employment, etc. 

The benefit of a short sale to the seller is that they can avoid a full foreclosure proceeding and often the mortgage holders will consider the proceeds of the short sale as full compensation, waiving any future right to sue the seller for a deficiency judgement.  Once a seller elects to do a short sale, they hire a realtor and together arrive upon a price at which to market the property based on the realtor's expertise of the local market conditions.  The property then gets marketed through the MLS system for sale "subject to short sale approval".  Once a buyer writes an offer, a package gets submitted to the mortgage company (or companies) for consideration.  The consideration process can take anywhere from 14 days to 120 days or longer depending on the circumstances. 

If you are considering selling your home on short sale the first thing to do is speak with your lender to see if you might qualify under their guidelines.  The second and by far most important is to hire a professional, local realtor experienced in short sales. 

 If you are a buyer considering a short sale you must be prepared to be very patient.  If you have to be into a home in a short period of time, a short sale is not for you.