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Home Staging Ranks #2 in HomeGains Top 12 Home Improvements for Sellers

Most Home Stagers agree, however, that Staging encompasses all 12 of these improvement projects, as a good Stager will advise if, and to what extent, these improvements should be undertaken to increase the marketability of the property.

The article can be viewed here:

http://blog.homegain.com/home-improvement/homegain-2009-top-12-home-improvements-survey-results/

I have already had an agent ask if $300 for Home Staging is realistic.  The answer is yes, a $300 Home Staging can make a major improvement in the way an occupied house shows.   Call a Home Stager for more details.

Tags: Home Staging ROI, Home Sweet Home Staging, oakland county home stager, selling a metro detroit home

Home Staging By the Letters!

From my staging colleague Cindy Bryant, owner of Redesign, Etc. in Houston, TX:

Helping home sellers achieve their goal.

Offers will come faster.

Marketing strategy.

Effective selling technique.

Selling a home for all it’s worth.

Taking a tried and true approach.

Always looking better than the competition.

Get better appraisal values.

Internet photos will show a must see property.

Never giving you a bad first impression.

Gain more exposure with better listings.

Stage Rooms for Their Intended Purpose When Selling a House

When potential buyers view a house for sale, they need to see rooms presented as they were intended.  The master bedroom shouldn’t be an exercise room, the bathroom shouldn’t be a pet station, the garage shouldn’t be a storage unit, and unless you have more than 3 bedrooms, resist the urge to make one an office.

This is especially important when it comes to dining areas.  People want to see where they will gather for meals and entertain their loved ones.

I recently staged a 900 sq. ft. house for a client who was using her dining room as office space.  As you can see (amongst the considerable clutter), a desk definitely does not belong there.  Aside from being the wrong use of the space, it was also the first thing visitors saw when they came in the front door … NOT a good first impression. 

After completely clearing out the area , I moved the table and chairs that were overwhelming the small kitchen and created a proper dining room.

Visitors can now see that there is room for a full size table and 4 chairs at the very least.  Showing a dedicated dining room, the intended purpose for this space, adds value to this petite house and answers an important question for the buyer.

Short sales successes

When we started selling homes in 2001, short sales were unheard of in Metro Detroit.  Foreclosures were rare in Oakland County.  But times have changed and this year we have had an enormous uptick in our short sale business.

Short sales are taking place in every price range.  In the last 30 days we’ve helped buyers and sellers to close on homes with list prices between $110,000 and $999,000 in communities like Bloomfield Hills, Royal Oak and Orchard Lake.  We’ve got 5 other short sale homes in the pipeline right now, all with offers on them and in to the bank for evaluation.

Some scenarios can make a short sale even more challenging to handle successfully.  Dmitry recently navigated treachorous waters with a short sale that involved private lien holders in addition to the banks.  Three individuals had made personal loans to the owner and did not really want to accept anything less than payment in full.  The banks were offering a few grand to them to scram.  If the home and gone to foreclosure they would not have seen a nickle.  In the end there was intense drama for a few weeks but Dmitry got everyone to the closing table.  The buyers got a great house and the seller got out of a bad situation.

Buyers, you can get a deal with a short sale, but it comes at a price.  If you have the time and the patience you could be rewarded handsomely.

Tags: bloomfield hills short sale, foreclosure, short sale

What is a Mortgage Loan Modification and How can it work for Me?

Mortgage loan modification is something that has been talked about a lot over the past year as financial hardships have made it difficult for some to manage their monthly payments. Loan Modification is when your lender agrees to make a permanent change to the original terms of your mortgage loan. This could be in the form of an interest rate reduction, fixing the rate on an ARM loan, extending the amortization (i.e., making the loan a 40 year term to reduce the payment), changing the loan terms to require an interest only payment or even a principal reduction (reducing the amount owed). The purpose of the modification is to make it feasible for the borrower to make the monthly payments on the house.

Why would a lender agree to this and under what circumstances will they do it? Well, the lenders’ goal is to have loans it makes perform and, contrary to popular belief, they do not want to foreclose on anyone as owning homes is not the lenders business. So, if the borrowers’ personal circumstances indicate that a specific change in the terms of the loan will make it possible for them to make on-time payments on the debt then the lender will seriously consider making those changes.

Your specific circumstances are going to be the driving factor in whether or not a loan modification is possible. The lender is going to ask you to document your income so they can determine whether you are capable of making the existing loan payments and, if not, whether a modification of the terms will make it possible for you to make the payments. If you make $10,000 per month and your loan payment is $2,000 it’s not likely that your lender is going to modify the loan because it appears that you should be capable of making the payments. If you and your spouse were both working at the time you took the loan out and one of you has lost your job then a loan modification may be feasible as long as the lender believes making the change to the loan will enable you to make timely payments. If you are unemployed then a modification is not likely as the lender will want to know you have a stable income stream to make the new payments. Each case is different and they are going to be looked at individually.

There are a lot of companies that have popped up over the past year that offer to work as a facilitator to work between you and your lender. Generally, they charge an upfront fee (usually several hundred dollars) and give you no guarantee as to the outcome. Some of these companies are reputable but many are not so be careful. You really don’t need a modification company at all as you can work directly with your lender. However, some folks have reported excellent results working with a mod company. I have referred some of my clients to one which purports to have a 90% success rate. What they do is to review your financial data in advance of charging you a fee and then if they feel that your modification has a good chance of success they move forward. If it does not look like the lender will consider the modification they charge you nothing. This seems to be the best approach in my opinion.

So, a loan modification is one way for people who are experiencing a financial hardship to work with their lender and keep their home and their credit standing. It is a viable option and should not be ignored. If you think that you may be qualified for a loan modification give your lender a call and you may be surprised by the result. Good Luck!

Image courtesy of The Truth About Mortgage.com

Tags: loan modification

Oakland County Fireworks

7/01 Fireworks in Borden Park in Rochester Hills

7/03 Fireworks during ArtBlast in Birmingham at the Birmingham-Bloomfield Art Center

7/03 Fireworks at Lincoln Hills Golf Course in Birmingham

7/03 Fireworks in the Parks at Addison Oaks County Park in Leonard

7/03 Fireworks over Wolverine Lake

7/03 Fourth of July Fireworks at Hazel Park Raceway in Hazel Park

7/03 Fourth of July Fireworks at Red Run Golf Course in Royal Oak,

7/04 Fourth of July Fireworks at Lakeside Park and Groveland Oaks Park in Holly

7/04 Clarkston Festival of Fun at Clintonwood Park in Clarkston

7/04 Lake Orion Fourth of July Jubilee at Green’s Park in Lake Orion

7/04 Annual Beach Bash at Camp Dearborn in Milford

7/04 Huntington Woods fireworks at Rackham Golf Course

7/04 Fireworks over Maceday and Lotus lakes in Waterford Township

7/04 Clawson 4th of July Fireworks at Clawson Park on Main Street

7/04 Fenton fireworks at Silver Lake Park

7/04 Fourth of July Fireworks at Mitchell’s Marina in White Lake

7/05 Oakland County Boat Club Fireworks at Sylvan Lake

Photo by James Marvin Phelps

Tags: 4th of July, oakland county fireworks

Mortgage Rate Update

Mortgage Market Update June 9, 2009
Well, it’s Wednesday, May 27th and I’m cruising along at the office working out various underwriting issues working towards closing a bunch of loans because for the first time in over a year, I’m really busy! Oh happy day! Until today.

On the day I am writing about interest rates had been very stable in and around 5% on a 30 Year Fixed for a couple of months and it did not appear that anything was going to move the rate up for the foreseeable future. That assumption turned out to be very wrong. On May 26th our rate (30 Fixed) was 5.0% with zero points. The Treasury Bond market was a little jittery at the end of the day because the Federal Government was scheduled to be selling a bunch of new debt over the next couple of weeks and if the bond auctions were not well received by investors then the rate on these bonds would rise. An increase in Treasury Bond rates will cause mortgage rates to rise also. The billions of dollars in 5 Year Bonds the fed sold on the afternoon of the 27th were not very well received and by the end of the day, May 27th, mortgage rates had gone up to 5.5%. In one day – Ouch.

The next day I awoke feeling very positive that this little spike in rates was going to reverse itself over the next week or so. Then on the 28th Durable Goods Orders figures were released and orders were up 1.9% – much stronger than expected. Also, released were new claims for unemployment benefits which were smaller than expected. People buying more stuff and fewer people losing their jobs is good news for the economy’s future but bad news for interest rates. Interest rates go up when the economy is doing well and go down when things are bad. By the end of this day the rate was up to 5.75%.

Rates had gone up ¾ of a point in just a couple of days. Since then this rate has held as more positive economic news has been released. Personal incomes and Outlays (consumer spending) were reported at the end of the week and both were stronger than expected keeping rates pegged at the new higher level.

The good news – we may get out of this economic mess we’re in faster than anyone thought. The bad news – a stronger economy will keep mortgage rates above the super low levels that we had been seeing. Overall though, when you can get a 30 year fixed rate mortgage anywhere in the 5’s that is a really great rate to borrow at. We may see a slight pull back in rates in the near term but as the year progresses there is little doubt that interest rates will be rising some more. If you’re in the market to buy a home I suggest identifying a home to buy, making an offer and getting your rated locked in now. Happy house hunting!

Tags: mortgage rates

And the Answer is … HARDWOODS!

I received a call recently from a client to whom I had provided a Home Staging consultation report.

For those not familiar, a consultation involves touring an occupied house for sale, assessing it’s flaws and possible buyer turn-offs, and providing a complete DIY to-do list to the seller. For sellers who have the time and energy, it’s a great low-cost alternative to having the house professionally staged.

A quick note about this client … his regular travels back and forth from Ohio to his elderly mother’s Oakland County house to help her prepare it for market surely put him in the running for “Son of the Year”!

So, in following my list of recommendations, he had one question for me:

“We’re going to replace the carpet, but there is hardwood underneath. Should we recarpet or refinish the hardwoods?”

After giving an enthusiastic “YAY!!!”, I told him that refinishing the hardwoods was DEFINITELY the way to go. He was a bit surprised, and offered the theory that buyers would prefer carpet because it looks “cozier”.

NO!

Carpeting may look warmer, but it also can deter buyers who worry about allergies, previous 4-legged residents and water/mold issues. Even the smell of new carpet can be troublesome. Carpet just isn’t as hygienic (or beautiful) as hardwood flooring, and resale value reflects that.

Today’s buyers want hardwoods. If your property is blessed with hardwood floors under the carpet, sand them down and shine them up! It’s a no-brainer.

Tags: answers to home seller's questions, home stager, Home Sweet Home Staging, Marianne Sweet on Home Staging, Oakland County MI home stager

Breaking News: First Time Home Buyers Can Use $8k Tax Credit as Downpayment!

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.

Donovan’s remarks came in an address to several thousand REALTORS®, including 130 from Michigan, who are in Washington D.C. this week for the annual REALTORS® Midyear Legislative Meetings & Trade Expo.

Secretary Donovan said that important changes, which the National Association of REALTORS® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Read more here.

Michigan: A Great Place to Live!

Michigan on a Positive Note!
Okay, really, I have absolutely had it with some of the doom and gloom we are all hearing about. Sure industry is going through some dramatic changes right now and in my opinion it’s not all bad. The various things happening in the auto industry in Michigan today are going to shape new more efficient entities that will be better positioned for long term survival, growth and prosperity. Nobody likes change but it comes our way whether we approve of it or not, so embrace it. You know the old saying – “when one door closes, another opens.” These changes that are occurring are staging new opportunities that we, as yet, may not even be aware of!

The real purpose of this writing is to talk about all of the various things that make Michigan one of the most desirable places to live in the nation. When a place has all of the amenities that our state has it’s going to attract new residents. Sure, there are some folks leaving the state to seek out opportunities but there are also people moving in to the area to take jobs here (I have financed or talked to a handful of people relocating here this year) and others coming to Michigan to buy vacation homes here to take advantage of the great affordability of that market right now.

Anyway, consider all of the great things our State has to offer; it’s a water wonderland with tons of golf, beautiful destinations, professional sports and cultural activities!

Water Fun Abounds
Did you know that Michigan has over 3,000 miles of beautiful Great Lakes shoreline? Can you imagine the number of different beaches we have to relax on? Take your family to build sandcastles, play Frisbee, do some wakeboarding, maybe some shoreline fishing, or just lie down and read a book!

We have over 11,000 inland lakes! If you’re into waterskiing, tubing, fishing, sailing or just partying on the water where else will you find the abundance of lakes we have all around us?

Into fishing? There are 36,000 miles of rivers, and 12,000 miles of trout waters here in our state. If you’ve never done it, there is nothing like catching, filleting and pan frying a fish the same day you caught it out of a local freshwater stream.

Winter Wonderland
After shoveling snow for most of my life I mostly think of snow as a pain in the you know what, but it also has its fun side with snowmobiling, skiing, snowboarding, sledding and snowman building. We have over 6,100 snowmobile trails and 40 ski resorts in Michigan. If you’re into winter sports this is a great place to land. You have to admit when the whole State is covered in a fresh coating of white snow it is quite beautiful.

Golfers’ Paradise
Michigan is home of more than 800 golf courses – Country Club’s, Golf Resorts, public and private courses all over the State. We are truly the golf capitol of the Midwest.

Beautiful Destinations
I personally travel within the State once or twice every year. Mackinac Island is one of my personal favorite places to go. No cars – the only modes of transportation are your feet, horseback or carriage and by bicycle. What a quiet and peaceful island paradise nestled between two Great Lakes in the Mackinac Straights. Although there are just too many destinations to list here, some of the other places we frequent include Harbor Springs, Saugatuck, Charlevoix and the Glen Arbor area. Don’t forget about the Upper Peninsula. When it comes to wilderness hiking and unbelievable scenery the UP is the place. Are you a UP’er?

Cultural Activities
Finally, Michigan offers some great cultural activities. The newly renovated Detroit Institute of Arts is always a great way to spend the day. Also downtown we have the Historical Museum, Science Center African American History Museum and the Detroit Zoo. In Dearborn the Henry Ford Museum and Greenfield Village are fun for the whole family. Don’t forget we have an abundance of local professional sports teams here and more winning clubs in various sports than anywhere else in the nation! We have a perpetually strong hockey club in the Red Wings, a consistently great basketball team in the Pistons; the Tigers have shown unbelievable strength in recent years, and, well, the Lions. Of course, we also have thousands of fantastic restaurants, night clubs and several casinos if that’s your bag.

What a Great Place to Live!
So, for all of you people out there who think folks are leaving this State in search of greener pastures I say that over time there will be more people coming to the area to enjoy the amazing amenities that Michigan has to offer than will ever leave. Sure in the short run you may see somewhat of a population shift out of the area but in the long run there is just too much here to draw people in. We have a very high quality of life in this State when it comes to recreational activities and isn’t that what life is all about? We work hard so we can play hard and there isn’t another State in the Union that has more opportunities for leisure time fun than Michigan!