Posts Tagged ‘Foreclosures’
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Friday, October 29th, 2010
As foreclosures and short sales continue to complicate the resale market of existing Ann Arbor homes, some sellers may choose to lease their home with an option to buy. Before entering into this kind of real estate agreement, the seller and buyer should consider the following issues.
An option to purchase real estate gives the buyer the right to purchase a property at a specific price during a finite period of time. It can not be revoked by the seller and the buyer must exercise the option prior to the expiration date.
When a buyer exercises the option, it immediately goes into effect and should not require the buyer and seller to execute a separate purchase agreement. Therefore, an option agreement should spell out all the key terms of the purchase: price, when the sale will close, title insurance requirements, tax proration methods, inspections, etc. If the essential components of a purchase agreement are not made part of an option to buy, then the option may not be enforceable. Some option agreements allow for a portion of the rent to be applied towards the purchase price if the buyer exercises the option. Similarly, the portion of the rent applied to the purchase price is forfeited if the option is not exercised. Sellers may also include a clause that ends the buyer’s right to purchase if the tenant/buyer fails to pay the rent on time.
A buyer in a lease with an option to buy transaction may want to protect their interest in the home by recording it with the appropriate register of deeds. The option agreement can be recorded. However, this makes all the terms of the purchase public record. Rather than record the entire option agreement many buyers record a memorandum of option. This notifies anyone interested in purchasing the home that an option exists but does not reveal the specific terms of the agreement.
If there is an existing mortgage on the property then both the seller and buyer must be fully aware of the existence of a “due on sale” clause in the seller’s mortgage. Generally speaking, most mortgages have a due on sale clause which states that if all or part of the property is transferred without the lender’s written consent, the lender may require that loan become immediately due and payable. The specific language in this clause will indicate if a lease with option will trigger the loan becoming payable.
Sellers and buyers should also be aware that a leased home is no longer eligible for the principle residence exemption which causes the property taxes to increase. There may be local ordinances governing rentals which may require inspections, permits, etc. When a home becomes a rental, insurance rate often rise so it is important to discuss this with your insurance carrier before entering into a lease.
You can see that a lease with an option to buy has many components and factors that both buyer and seller must consider. The very nature of the agreement is complicated so as we frequently say in the real estate profession: “All parties should seek the advice of an attorney”.
As always, we here at Prudential Snyder & Company Realtors are here to assist you with any of your Ann Arbor Area home buying, home selling, rental or other Ann Arbor real estate needs.
Call us at 734-747-7500 or 734-747-7700 weekdays, or 734-660-0105 evenings and weekends. We’re also available via email at info@prusnyder.com or online at www.prusnyder.com anytime. Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor, Ann Arbor Homes, Ann Arbor House, Foreclosures, home buying, home selling, lease with option, rental, resale market, Short Sales
Posted in Ann Arbor Rentals |
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Wednesday, September 29th, 2010
Homes that need repair or other improvement often represent a great opportunity to buy a home in a desirable location for less than its market value.
Ann Arbor area home investors and other real estate professionals often have enough cash to buy the property at the reduced price and pay for the repairs. Once the repairs are made, the investors put it back on the market and generally sell for a profit.
How does a buyer, who doesn’t have cash and plans to live in the home, finance the purchase and pay for the repairs? Some lending institutions participate in “renovation financing” which is available through the Federal Housing Administration (FHA).
Commonly known in the real estate industry as a FHA 203(k) loan, it allows a buyer to finance the purchase price and the cost of the repairs and improvements.
The lender will assign a renovation loan specialist to assist the buyer with the process. The loan amount is determined by using the after-improved value of the home and can be for as much as 110% of the after-improved value up to the FHA loan limits that apply in that geographic area..
Once a purchase agreement has been accepted by both buyer and seller, the buyer must select a contractor and submit the contractor’s bid and the work to be done to the renovation loan specialist.
After the scope of work is agreed to by the buyer, the contractor, the loan specialist and the lender, the approved scope of work is sent to an appraiser who goes to the property and establishes the home’s after-improved value.
If the appraisal supports the purchase price and the cost of the repairs and all the other standard loan qualification steps have been successfully completed, the loan is approved.
The renovation must begin within 30 days of closing and must be completed within the agreed upon time frame which is generally 6 months or less.
Renovation financing is also available for those who wish to refinance and improve their homes.
So, don’t shy away from those homes that need some help. They may turn out to be just what a buyer is looking for.
As always, we here at Prudential Snyder & Company Realtors are here to assist you with any of your Ann Arbor Area home buying, home selling, rental or other Ann Arbor real estate needs.
Call us at 734-747-7500 or 734-747-7700 weekdays, or 734-660-0105 evenings and weekends. We’re also available via email at info@prusnyder.com or online at www.prusnyder.com anytime. Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor Area Home, Ann Arbor Homes, Ann Arbor House, buyer, fha 203, Foreclosures, home buying, home selling, Homes for Sale, loan specialist, renovation loan, rental
Posted in Ann Arbor Real Estate |
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Tuesday, July 27th, 2010
 Photo: Nick Bastian We’ve talked a lot about Ann Arbor Real Estate, the short sale and foreclosure market, and the changing housing market. The internet gives us a plethora of information on Ann Arbor homes for sale, but often the jargon used by Realtors goes undefined. With that thought in mind, I’m going to run a new series to help home buyers and home sellers decifer the details shared in our marketing pieces and listings.
Let’s start with the basics today: What is a condo?
- If you own a condo, you do not own the land surrounding your living space.
- A condo owner owns only the unit itself, which is taxed as an individual entity, and sometimes a percentage of the common areas of the community.
- Condo communities may provide such shared facilities as a pool, gym, tennis courts and clubhouse, all maintained by the condo association, which takes care of all day-to-day management tasks. This is one of the key advantages of condo living — all of the joy of using the amenities, none of the hassles of maintaining them.
- Condominium owners pay a monthly fee to the condo association, which also sets the rules for the community.
There are well over 100 condo communities in Ann Arbor alone. Each development is centered around the unique needs of its owners and has a distinctive set of accommodations and special features that make it exceptional.
If you’re interested in learning more or have any comments or suggestions, please let us know. In the next blog, we’ll take a look at the different types of single family homes available in the Greater Ann Arbor Area.
As always, we here at Prudential Snyder & Company Realtors are here to assist you with any of your Ann Arbor Area home buying, home selling, rental or other Ann Arbor real estate needs.
Call us at 734-747-7500 or 734-747-7700 weekdays, or 734-660-0105 evenings and weekends. We’re also available via email at info@prusnyder.com or online at www.prusnyder.com anytime. Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor, Ann Arbor Homes, Ann Arbor House, Condo Communities, Foreclosures, Greater Ann Arbor, home buyers, Home Search, home sellers, home selling, Homes for Sale, Prudential Snyder, Realtors, rental, Short Sale
Posted in Ann Arbor Real Estate |
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Thursday, February 11th, 2010
Getting the best price is about bringing you the right buyers for your house. This requires a Rock Solid ® marketing plan, targeted media exposure and an extensive network of local and out-of-town buyers. When you work with an Ann Arbor based company with a global support and presence, you’re able to access unparalleled online technology, such as the Online Sellers Advantage programming.
At Prudential Snyder & Company Realtors, we pride ourselves on putting our consumers first. To that end, we have revamped our servicing programs to make information available early and often for all parties in a transaction. Check out our fabulous website with mobile phone search capabilities and ask about our new Relay technology!
We pride ourselves on our ability to work with consumers to find the best solutions for your specific needs. Our agents hold certifications and are specially trained to handle any situation. Whether you require a Short Sale & Foreclosure Resource Certified Agent, or specialty marketing for your Green Living home with an EcoBroker, a Fine Homes Specialist or any other special niche you may require, we can help you!
As always, we are here to assist you with any of your real estate needs. Call us at 734-747-7500 or 734-747-7700 weekdays, or 734-660-0105 evenings and weekends. We’re also available via email at info@prusnyder.com or online at www.prusnyder.com anytime. Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor, Ann Arbor Home Search, Ann Arbor Homes, Ann Arbor House, Ann Arbor MI, Ann Arbor Properties, EcoBrokers, fine homes specialist, Foreclosures, Green Living, online seller, Search Ann Arbor Homes, Short Sales
Posted in Ann Arbor Realty |
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Wednesday, November 18th, 2009
We all know that there are no emotional ties between the bank negotiator and the homes they sell. They are looking at bottom line net prices only. So if you walk through a home and hate the carpet or it smells like animal urine, the walls are filled with nail holes, and there’s ½ inch of water in the basement, take that into account when you determine your offer price and/or ask for concessions in the original contract. Asset Managers understand that there are issues that may come up in inspections that were not known ahead of time, but if you write an offer and have it accepted, then go back to the bank and ask for items that should have been noticed and considered in your inital offer, they tend to get annoyed.
In order to make your transaction go as smoothly as possible, make sure you adhere to the following guidelines:
- Do your due diligence. Your Buyers Agent will assist you with confirming taxes, school boundaries, outstanding leins, square footage, etc.
- Make sure you have all facts gathered & inspections completed prior to requesting seller repairs or concessions.
- Include repair bids to expedite the negotiation process.
- Choose realistic closing dates. Underwriters are swamped and new guidelines that are bogging the process, so be sure to allow proper time.
- Listen to your Realtor. They are here to work in your best interest, they know the market, and they can usually get a feel for when you’re hitting the nerves of the negotiator. If your Realtor tells you to stand down on an issue, it’s probably in your best interest to do so. Remember, you’re not fully under contract until negotiations are completed and contingency removals are signed off on, so the bank can refuse to negotiate if you become difficult to work with, and move on to the next prospective buyer.
For many Foreclosure Asset Managers, the only issues that they will address are health and safety concerns. With short sales, often the bank will allow NO repairs or additional concessions. When a purchase is an “as is” sale, inspections done are for informational purposes only – the buyer will have the opportunity to walk away from the sale if the inspection issues are great, but it doesn’t mean that they will re-negotiate price.
As always, Prudential Snyder & Company Realtors are here to assist you with any of your real estate needs. Call us at 734-747-7500 or 734-747-7700 weekdays, or 734-660-0105 evenings and weekends. We’re also available via email at info@prusnyder.com or online at www.prusnyder.com anytime. Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor, Ann Arbor Home Search, Ann Arbor Homes, Ann Arbor MI, ASSET MANAGERS, Foreclosures, HOME SALES, Homes for Sale, Investments, NEGOTIATION, Prudential Real Estate, Real Estate, Realtors, Short Sales
Posted in Ann Arbor Real Estate |
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Wednesday, November 18th, 2009
I am both amazed and revolted by the number of con artists out there trying to take advantage of the distressed homeowners. Once these companies snag your attention, they have a variety of ways of “saving” your home. Most commonly:
- Rent-to-buy scams. They get the owner to sign over title of the home, then rent it back with the option of re-purchasing it in the future. The terms and rates of the agreement are set up so that gradually the rent is raised to the point where it is no longer affordable, the former owner is evicted, and new owner is free to sell the property.
- Phony refinancing. The owner signs documents believing they are bringing their mortgage current, instead they are signing over title to their property unknowingly.
- Fake Counselors. A company contacts owner, offers to assist with refinancing, and demands an up-front fee for services. Sometimes they request that all house payments be made directly through them during the “negotiation period” with the bank. In both scenarios, there are no attempts to contact lenders, the scammers just take the money and disappear.
There are lots of other ways that these con artists make off with your hard earned money, so be extremely leery if anyone contacts you directly.
As always, Prudential Snyder & Company Realtors are here to assist you with any of your real estate needs. We can help direct you to local reputable services if you have questions or concerns about selling your home. Call us at 734-747-7500 or 734-747-7700 weekdays, or 734-660-0105 evenings and weekends. We’re also available via email at info@prusnyder.com or online at www.prusnyder.com anytime. Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor, Ann Arbor Home Search, Ann Arbor Homes, Ann Arbor House, Ann Arbor MI, Ann Arbor Properties, Distressed Homes, Foreclosure, FORECLOSURE RESCUE, Foreclosures, Homes for Sale, HOUSING COUNSELORS, SAVING YOUR HOME, SCAMS, Search Ann Arbor Homes, Sell My Home
Posted in Ann Arbor Real Estate |
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Wednesday, October 14th, 2009
Last week we talked about the high number of individuals looking to rent Ann Arbor properties and did a quick overview of what is necessary to become a landlord. Along the same vein, we’re being bombarded with television shows and media showing us how quick, easy, and profitable it can be to buy a home in need of renovation and “flip” it.
With many of the same criteria as the rental investors, here are a few things 1st time flip investors need to keep in mind:
- Create a budget, then double it to allow for unforeseen issues.
- Make sure there enough room to make a true profit after repairs and improvements; if you don’t know the market, do your research!
- Plan a timeline, then double it as well. Always better to be safe than sorry.
- Know your contractors. Interview and get recommendations from other investors. They will make or break your project.
- Know your limitations. Many 1st time flippers believe that they can do a lot of work themselves only to learn it’s not always as easy as the pros make it appear.
- Know city building codes as well as homeowner association regulations if applicable.
In a buyers market like we’re experiencing, the potential to make a profit IS there, but only if you are effectively budgeted and prepared. Make sure you’re doing your homework and utilizing professional assistance as needed.
As always, Prudential Snyder & Company Realtors are here to assist you with any of your real estate needs. Call us at 734-747-7500 or 734-747-7700 weekdays, or 734-660-0105 evenings and weekends. Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor Home Search, Ann Arbor House, Ann Arbor MI, Ann Arbor Properties, building codes, contractsors, fixer upper, Flip a house, Foreclosures, home renovation, home sale profit, housing budget, housing market, Investment properties, Investments, repairs and improvements
Posted in Ann Arbor Real Estate |
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Wednesday, August 26th, 2009
Recent Sale in Burns Park
1520 Morton Ave
List Price: $579,000
Sale Price: 494,000
DOM: 73
Closing Date: 8/25/09
THE BENEFITS OF WORKING WITH A BUYER AGENT
Purchasing a home is one of the most important steps that you will take in your lifetime. Besides being one of the largest financial investments that you may ever make, today it has easily become one of the most complex. Entering into a Buyer Agency Contract will be the first and most important step that you will take in the home buying process.
So what is Buyer Agency?
Michigan law requires real estate licensees who are acting as agents of sellers or buyers of real property to advise the potential sellers or buyers with whom they work of the nature of their agency relationship.
A buyer’s agent, under the buyer agency agreement with the buyer, acts solely on behalf of the buyer. The buyer’s agent will have a fiduciary responsibility to negotiate on your behalf. Working with a buyer agent is beneficial for so many reasons.
- Your buyer’s agents will provide help and support throughout the entire process.
- Buying or selling a home requires numerous disclosure forms, inspection reports, mortgage documents, deeds and so much more. An experiences real estate professional will have the expertise to walk you through the home buying process.
- Your buyer agent can provide important information on each property that you are interested in learning more about. They can also provide crucial local community information on utilities, zoning and more. You can’t find everything on the internet; let your Realtor lead the way!
- Benefit from your buyer’s agent negotiating experience. There will be many factors involved in your real estate transaction including but not limited to price, date of possession, possible repairs or concessions, financing or furnishings. Your buyer agent can advise you as to what’s worth negotiating.
- Your buyer agent can speak the language. Odds are you don’t know the difference between a CTS status from a PUD. You can understand why it’s important to enter into a Buyer Agency Contract with your real estate professional who is immersed in the industry.
- Most people only buy and sell real estate a few times in their entire lifetime. Your buyer agent spends every single day in the real estate business and is up to date on recent laws and possible regulation changes. Realtors handle hundreds of real estate transactions over the course of their career. Working with an expert in the industry is crucial.
- Most often Realtor compensation is at the expense of the seller.
SEARCH FOR ALL AVAILABLE LISTINGS
Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor Homes, Ann Arbor House, Buyer Agency, Chelsea, Dexter, Downtown, Foreclosures, Livingston County, Michigan Football, Prudential Real Estate, Prudential Snyder & Company, Realtor, Saline, The University of Michigan, Washtenaw County, Ypsilanti
Posted in Ann Arbor Real Estate |
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Wednesday, August 5th, 2009
WELCOME TO THE FUTURE OF ANN ARBOR REAL ESTATE!
PREVIEW SUNDAY OPEN HOUSES – On the left side:
- go to “Listing Type“
- select “All MLS Open Houses.”
- scroll down, select “Go.”
SEARCH FOR ANN ARBOR AREA HOMES
In our commitment to being the Local Innovation Leader, we at Prudential Snyder & Company would like to invite you to CLICK TO THE FUTURE of Real Estate!
We welcome any feedback and suggestions: info@prusnyder.com. Choose Prudential Snyder and Company for the best Ann Arbor Realtors!
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Tags: Ann Arbor Homes, Ann Arbor House, Ann Arbor Properties, Chelsea, Dexter, Distressed Homes, Downtown Ann Arbor, Foreclosures, Mobile Phone Search, Open Houses, Saline, Short Sales, Washtenaw County, Ypsilanti
Posted in Ann Arbor Real Estate |
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Tuesday, June 16th, 2009
The ninth annual Ann Arbor Green Fair drew an enthusiastic crowd of ecologically minded people to the Downtown area last Friday on June 12th. Over 100 exhibits were available with environmental information which included everything from clean energy, green construction, hands-on youth activities and face painting along with the some of the Prudential Snyder & Company EcoBrokers!
EcoBroker Laura Shope was thrilled with the Green Fair Event: “This has been the largest turn out in terms of the fair and vendor participation in the past 4 years. People were more aware and knew specifically what they wanted to know more about.” Listen to Laura Shope talking about the EcoBroker Certfication on WEMU.
David Wallner, also a Prudential Snyder & Company EcoBroker enjoyed educating the public on the benefits of working with an EcoBroker and also left the Green Fair with a lasting impression of Eco-Friendly living. “After attending the 2009 Ann Arbor Green Fair, I made the decision to order an energy audit on my house. This is a great start for conserving energy.”
The fair was broken down to four related events:
The Environmental Leaders Area: more than 50 environmental nonprofit organizations, government agencies, and participating businesses that have earned the “Waste Knot” partner designations from Washtenaw County.
(more…)
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Tags: Ann Arbor Green Fair, Ann Arbor House, EcoBrokers, Football Stadium, Foreclosures, Homes, Hospital, Prudential Real Estate, The University of Michigan
Posted in Ann Arbor Real Estate |
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