Hi, I’m Tammy Halterman, and if you’re looking for a new home – or your first home – now’s the time to buy. We’re in the middle of a historically unprecedented housing market shift, and if you’re a buyer, that’s good news for you.

My clients are my priority and I believe in true customer service.

In this challenging market, there are opportunities for buyers which may never come again. From HUD homes to larger properties, prices and mortgage rates are favorable to buyers like never before. Acting now could save you many thousands of dollars over the course of your home ownership, and I’d like to help you make the dream come true.

If you’re looking for the perfect home for your family, seeking investment or rental properties, looking for a HUD home, thinking about renovating a home to flip or just looking ahead, I can help. I have contacts with lenders and finance institutions, inspectors and contractors that can help you every step of the way.

I can help you find the perfect home for you and your family – and help you navigate your way smoothly through what may well be the most important (and largest) purchase you’ll ever make.

Muskegon County, Mich., is no exception to that rule, but a stunning offer might help change that trend.

The unemployment rate in Muskegon rose from 13.9% in June to 14.9% in July, but in  a bold move to stimulate hiring, the city of Muskegon, the county and Dalton Township have joined forces to offer free land to companies that can guarantee 25 or more full-time jobs at one of two industrial parks.

Qualifying companies that accept the offer also will receive reduced water and sewer utility rates for at least three years, plus huge tax breaks. Government officials rolled out the program, known as Muskegon 25, late this summer.

 

The available parcels at Seaway Industrial Business Park in the city and Muskegon Business Park North in Dalton Township are “shovel-ready sites,” says Ed Garner, president and CEO of Muskegon Area First, a private, non-profit corporation whose mission is to attract and retain businesses.

“The due diligence has been already done to qualify these sites environmentally, explains Garner, adding that the necessary zoning approvals are in place. “These sites are ready to go, which tends to be important to developers.” The asking price of land averages $17,500 per acre in Muskegon Business Park North and $30,000 per acre in Seaway Industrial Park.

That’s certainly an enticing offer. “We think it’s going to work. We’ve definitely got some calls about it,” says Mike Franzak, zoning administrator for the city of Muskegon, population 40,000. “We also want to show people this is a great place to live.” The downtown area is located on the shores of Lake Muskegon, an inland lake connected to Lake Michigan. “We have a great quality of life here in terms of the recreation — the golf, beaches, marinas and bike trails,” says Franzak.

And that’s not the end of the story…

Both industrial parks are in Michigan Renaissance Zones, which are virtually free of all state and local taxes for businesses located within their boundaries. That program ends in 2014, with a gradual phase-out period beginning in 2012.

Businesses that locate in either of the parks will pay no real estate property taxes or personal property taxes until 2012, when they will be required to pay 25% of the taxes, followed by 50% in 2013, 75% in 2014, and the full amount thereafter. It is possible to get at 15-year extension for “catalyst” projects.

The manufacturing sector in Muskegon County is diverse. Alcoa Howmet, which serves the aerospace industry, is the largest manufacturer in Muskegon County with 1,900 full-time employees. The county’s next largest manufacturer, L-3 Combat Propulsion Systems, produces engines and transmissions for military tanks and vehicles and has 600 full-time employees.

About 18% of the county’s workforce is employed in the manufacturing sector, says Garner. The silver lining in a high jobless rate is that skilled workers can be hired quickly. “We feel that we have a good training system with our colleges to get people ready.”

Are Unions the problem?

One misconception that some employers have of West Michigan is that the local workforce is heavily unionized, says Garner. Unions are a much bigger factor in Southeast Michigan, where Ford Motor Co., General Motors Co., and Chrysler Group LLC are all based, he emphasizes. “I would dare say that of the companies that are unionized here, it’s not an adversarial relationship with the union. It’s more of a cooperative nature.”

According to the U.S. Bureau of Labor Statistics, union members accounted for 18.8% of wage and salary workers in Michigan in 2009, down from 26% in 1989. Six states reported union membership rates below 5% in 2009, including North Carolina (3.1%), Arkansas (4.2%), South Carolina (4.5%), Georgia (4.6%), Virginia (4.7%), and Mississippi (4.8%).

Muskegon 25 is a win-win for companies and skilled workers, says Franzak, who doesn’t mince words. “We have people hungry for a job, and we feel we are a very business-friendly community.”

Financing is tougher to get, prices will almost surely keep dropping, and as they do, your selection of a home for investment becomes more critical.

If you have the money – or can get the proper financing – and can hang on to a home for five years or more, there's a huge inventory of properties at prices not seen since 2004.

"Everything is on sale today," says Amy Bohutinsky, a spokeswoman for Zillow.com.

Ask yourself: are you really getting a bargain?

Analysts at Redfin, a discount brokerage firm, think you can. Data from sales of 9,053 single-family houses in Los Angeles County; Fairfax County, Va.; and King County, Wash., between April 15 and June 15, Redfin shows most homes fetched within 3% of asking prices.

A large number sold 10% below asking prices. Studying these sales, Redfin came up with a formula. The recipe includes some tactics that savvy buyers use instinctively and others that run counter to prevailing wisdom.

Of course, not everybody agrees that homes selling well below list price can be considered discounted. Maybe they were just overpriced, says Barry Nystedt, president of the National Association of Exclusive Buyer Agents.

"Discount implies savings from actual value, as opposed to a price reduction from an unrealistic asking price," Nystedt said.

To make realistic decisions, you have to have realistic information about the current market, and that's where your agent enters the picture. By analyzing the surrounding homes and home sales, you can arrive at a useful base price to begin your negotiations for a particular property.

The first week of July should be dedicated to prospecting the 'expired listings' in your marketplace. There is no other activity that will bring a greater return on the investment of your time and energy. The agents who dominate this category of business in July will have a great finish to the year and will start 2010 off right.

2.    Work on properly pricing your inventory.

Do whatever research is necessary to have a complete understanding of both future 'demand for' and future 'supply of' housing inventory in your market. Those two components of the 'Supply and Demand Curve' will be the best indicator of future pricing.

3.    Understand where interest is going and explain it to  every buyer.

Help each of your potential buyers make good decisions on the purchase of a home. Explain that, even though the PRICE still may be softening, the increase in mortgage rates will increase the COST of the home. When is the best time to purchase? Now…

4.    Put together all four presentation manuals.

There are four appointments we must master to be considered a great REALTOR. We should
have a separate presentation manual for each one:

• Listing
• Buyer Counseling
• Price Reduction
• Presentation of 'Offer to Purchase'

]]> http://muskegonhomebuyers.com/2011/04/success-strategies-for-real-estate-agents-in-the-muskegon-market/feed/ 0 http://muskegonhomebuyers.com/2011/03/buying-your-home-in-muskegon-what-you-need-to-know/ http://muskegonhomebuyers.com/2011/03/buying-your-home-in-muskegon-what-you-need-to-know/#comments Tue, 29 Mar 2011 15:52:00 +0000 Tammy Halterman /post/2008/03/29/Buying-Your-Home-What-You-Need-to-Know.aspx Buying A Home

Creative ways to buy a home you may not have considered…

So you want to buy a place of your own but can't figure out how to pull together the necessary cash and financing? If you're willing to think creatively, there are several offbeat ways to buy your first home.

The fixer upgrade When you can't afford what you want, look for what you can afford and use it as a stepping stone.

Case in point: Jamie C, 46, and her husband bought an $80,000 two-family house about six years ago. They renovated, sold it and invested in a $200,000 two-family place in a nicer town. In a few years, they'll repeat that process and buy their dream house.

Their first house was far from ideal, but the down payment was only $5,000, and the rental income allowed them to pay for repairs without incurring more debt. After the sale, they walked away with more than $30,000. Ditto in their new home, but the rental income is higher, so they'll save more toward their next purchase — enough so that they can buy the new house and keep the rental property as an investment.

Pros: There are plenty of lower-priced houses out there in need of repair, and the income from a tenant can help both with repair costs and mortgage payments. Even in overheated markets, there's little likelihood that the value of homes at the low end will suffer in a slump.

Cons: This method isn't for the impatient or the status conscious. To save money, the couple did many repairs themselves, and it will be almost 10 years before they can settle into their dream house. Just be careful not to buy a place where the cost of repairs will eat up any profits you might make when you sell.

The shared load If buying your own property is prohibitive, consider buying into a dwelling with shared ownership. There are several options here, with varying levels of complexity and commitment. One of the most common uses a legal form of ownership called "tenants in common."

The friendly option: It's possible to buy a property with a friend you trust, sharing the mortgage and the title. This form of ownership is called joint tenancy, and it's the way most married couples hold property.

Case in point: In 2003, Bryan, 34, bought a three-bedroom house with a buddy for $299,000. They each put down $10,000, and they rent out the third bedroom to a friend, which helps cover costs.

Pros: The two are only paying slightly more than they would in rent, while they're building equity and the house is appreciating.

Cons: The legal particulars of joint tenancy vary from state to state, so you'll need to check with a lawyer. Under joint tenancy in many states, any owner can force the sale of a house or transfer ownership rights without the permission (or even knowledge) of the other owners. The costs and all decisions about maintenance and financing are shared equally, which is fine so long as everyone agrees.

The instant neighborhood Cohousing has its origins in Europe and is practically like buying a neighborhood along with your house. Residents own one of a group of small homes clustered together and share ownership of the land.

In 1992, Tom M and his family bought a small (1,150-sq.-foot) 3-bedroom house for $157,000 in a cohousing development on Bainbridge Island, Wash. A similar private home would have cost about $185,000 then, or 17% more, Tom estimates.

Pros: In many cases, property prices are lower than market. And though houses tend to be smaller, residents share ownership of the common facilities. "We had a 5,000-square-foot common house, with guest rooms and dining rooms where you could entertain large groups," Tom says. Residents may cook meals together or swap babysitting time.

Cons: Cohousing is largely a blue-state phenomenon with vaguely utopian overtones, but it's slowly spreading throughout the country. You need a high tolerance for meetings, because many decisions have to be made jointly by the owners. When selling your property, there may be some restrictions, and the buyer has to want to join a communal setting.

The parental plan Saving enough for a down payment usually requires some kind of a sacrifice, so don't rule out living with family.

Case in point: Saddled with hefty school loans and about $25,000 in credit card debt at the end of their medical residencies, Sonya C, 37, and her husband decided to move in with his parents for a year to pay off their plastic and save for a down payment. "People thought we were crazy," she says. "But it worked out really well."

Pros: Can you say super savings? Within 15 months, Sonya had paid off their credit cards and saved enough to put $50,000 down on a four-bedroom colonial in Long Island. "And we're all still speaking to each other," she jokes.

Cons: Mixing family and finances can be a stress cocktail. To diffuse tension, Cottone says, discuss money and expectations up front (everything from paying rent to doing chores). And though your savings will make you feel flush, "don't see it as extra," Sonya says. Stick to your savings strategy or you'll be living with Mom and Dad for years.

The no-money-down Hail Mary It can be tough to save enough cash for a down payment, but in certain circumstances you can finance your way around it.

Pros: You can buy a house without any upfront cash.

Cons: You need to have nerves of steel (in case property values drop) and be willing to live in contractor hell for a few months. And if your credit is less than stellar, this may not be an option at all.

The susu-super saver This simple saving strategy goes by different names in different communities, but the method is the same. Members of a "susu" contribute a fixed amount each week or month for a certain period (e.g. $200 a month for 10 months). At regular intervals, one member gets a specified payout in cash. .

Case in point: Laverne, a single mother in her 50s, has participated in over a dozen susus over the last 20 years. Right now she's in a 26-week susu in which each member will get $7,000.

Pros: Although the amounts are small, usually under $10,000, a disciplined saver could participate in several susus to fund a down payment.

Cons: Only communal pressure and the honor system ensure that everyone gets their turn (and that folks don't default). And your money doesn't earn interest.

But wait, there's more In the course of excavating all these options, I came across a wide array of federal, state and local programs designed to help first-time buyers and low-income buyers purchase a home.

For example, you may be able to borrow from your 401(k) or take money from an IRA (you escape the 10% early withdrawal penalty, but not income taxes). The Federal Home Loan Bank sponsors programs that match savings, $3 for every $1 put aside. There are loan subsidies for buyers in rural areas and in inner cities, too.

They have FHA financing so they could borrow extra money for repairs or renovations through either a 203K or a 203B FHA loan but that money cannot be used to build a garage or a pole barn. 

Another question they had was what happened if they bid more than full price on the home, some of the HUD homes are priced very well and bidders will offer higher than full price when they know there will be a lot of competition. 

The answer to that question for an FHA borrower is, yes, you can bid more than full price but you have to be prepared to make up the difference in cash.  On a HUD property, an FHA appraisal is done when it's put on the market, therefore your lender will have to use that appraisal for the value of the home. 

If your financing is conventional your lender will do their own appraisal and if they determine the property is worth what you offered than they will lend that amount. Of course, a cash offer has no restrictions as there is no lender or appraisal involved. 

A conventional loan on a HUD property can have it's own set of complications. If you offer on a property that needs repairs, the appraiser will come and look at the home and sometimes call for repairs that need to be made before the loan can close. 

On a HUD property or any other foreclosure the properties are sold in "as is" condition and the sellers will not do repairs.  The buyer is not allowed to do repairs on the property until it closes, so you become stuck in a Catch 22 situation.

There are good deals to be found in both HUD properties and other foreclosures, and with the help of a knowledgeable Realtor and lender, you can own one of these homes. If you understand the complexities involved – and there can be many – this is an excellent market for buyers. 

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3031 Merriam

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City: Muskegon Heights

Baths: 1

Price: $39,900

Status: Active

Bedrooms: 3

Half Baths: 1

208 Houston Ave

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City: Muskegon

Baths: 0

Price: $34,900

Status: Active

1082 2nd St

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City: Muskegon

Baths: 0

Price: $29,900

Status: Active

6296 Main

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City: Twin Lake

Baths: 2

Price: $149,900

Status: Active

Bedrooms: 5

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1606 5th St

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City: Muskegon

Baths: 1

Price: $24,000

Status: Active

Bedrooms: 4

Half Baths: 1

7338 Grand Haven Rd

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City: Spring Lake

Baths: 1

Price: $82,900

Status: Active

Bedrooms: 3

1531 Auble Rd

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City: Muskegon

Baths: 1

Price: $104,900

Status: Active

Bedrooms: 3

Half Baths: 1

1965 Manor Dr

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City: Muskegon

Price: $15,000

Status: Active

Description: Double lot in Norton shores, one outbuilding on the property. Quiet tree lined street in Mona Shores school district. Buyer to verify all information More Info

2286 Kinsey St

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City: Muskegon

Baths: 1

Price: $49,900

Status: Active

Bedrooms: 3

4477 Grand Haven Rd

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City: Muskegon

Baths: 1

Price: $149,900

Status: Active

The number of foreclosed homes for sale are at a record high.  If you have been considering investing in real estate now is the time.

 Interest rates and home prices are low and that is good news for buyers.  Whether you are thinking about buying investment property or plan to live in the home there are some great deals out there right now. 

The first step is always securing financing.  To place an offer on a bank property you will need either a bank statement with proof of funds or a letter from a lender approving you for a loan.  They will not even look at your offer without either of these items.  They normally ask for an earnest deposit of a certain amount, you will also need a cashier's check for the specified amount to place your offer.  Time can be of the essence when offering on some of these properties and if you are prepared you won't miss out and watch someone else get the home that you wanted. 

Whether you have purchased a home before or this is your first home this is a whole different ball game. 

You can get a very good bargain but there is risk involved with the reward.  It's like a "scratch and dent" sale, you are buying as is without any warranty.  I don't tell you this to scare you off, just to inform you. With the help of an experienced agent you can enjoy the rewards and minimize the risk. 

The second thing you need to do is forget everything you know about buying a house as this entire process will be different.  It even varies from bank to bank, your agent needs to make sure and spell out exactly what you are asking of the seller in the purchase agreement. Once you have an accepted offer the bank will have their own set of addenda for you to sign.  You and your agent need to go over them carefully so you know exactly what you are agreeing to.  They have their addenda drawn up by attorneys and they usually cover everything, bottom line is you are buying AS IS. If you have reservations about the bank addenda it may be worth your while to have your attorney look them over.  Your agent should understand them pretty well but real estate agents are not attorneys.

You can still place an offer contingent on a home inspection if you want to even though the seller is a bank, this usually gives you 10 days to arrange and pay for an inspection.  If the results are unsatisfactory and you are within your 10 day period you can get out of the contract and receive a refund of your earnest deposit.  You do need your agent to go over the bank addenda though as sometimes they will shorten the inspection period and anything written in the bank addenda will override the purchase agreement.  So, make sure you read carefully!

Other items to address are who is going to pay for title insurance, closing costs, revenue stamps, well and septic inspections and any required city inspections.  Once again if you don't ask for these things specifically most banks will not pay for them. 

Another issue to watch out for can be the closing date. 

The bank will specify a closing date in their addenda and if you are not able to close by that date they can charge you a "per diem" charge for every day you go past the closing date.  It is usually anywhere from $50.00 to $150.00 per day.  If your offer is cash this is not usually an issue as you can be ready to close any time.  If you are waiting on a loan make sure to give yourself some extra time for unforeseen delays.  You can ask for an extension without penalties but they will want a reason and they are not obligated to grant the per diem free period.  On the other hand, if they aren't ready to close they don't charge you and of course you have no choice but to give them an extension! 

 If there is anything I didn't cover here or if you have any questions about foreclosures please feel free to email me at t.halterman@exitlakeshorerealty.com or call me at 231-638-3090. 

They list it with a real estate agent at current market value to try and sell it before the foreclosure and redemption period are up.  This means the bank has to agree to accept less than the full amount owed on the property.  Short sales can be tricky as the listing agent doesn't usually know exactly how much the bank will accept so they have to set the price where they think it should be.  They can present an offer to the bank and it can take a long time for the bank to give an answer, and then when they do they may counter back above the listing price.  This can be confusing to buyers. 

Another problem with a short sale is the time frame of the redemption period.  When a homeowner is behind on their mortgage payment the bank will send notice of foreclosure after 4 missed payments, they will give the homeowner a date that their home will go to "sheriff's sale".  From the date of the sheriff's sale the homeowner has a 6 month "redemption period" where if they can come up with the entire amount owed they can keep their home.  This doesn't mean just catching up on back payments and late fees, it means you would have to obtain the entire balance of the loan from another source to "redeem" your home.  If they have three acres or more the redemption period is 12 months.  The homeowner can stay in the home until the redemption period is up. 

The problem with a short sale is if an offer comes in too close to the end of the redemption period and doesn't have time to close before it's up the sale cannot be completed.  The buyer will have to offer on the property again after it comes up for sale as a foreclosure.  Short sales can be a good deal but as a buyer you will need to have the time to wait and it is best to work with an experienced agent.  If you have a question that was not answered here please feel free to give me a call at 1-231-638-3090 or email me at t.halterman@exitlakeshorerealty.com. 

I have been on both sides of the short sale process both as a listing agent and as a buyer's agent.  I've had them take as long as four months, but on the other hand, I just offered on one and had it signed and accepted the very same day. Both of these examples are extremes and I would say most short sales will fall somewhere in the middle.  I am working on one right now that I first wrote an offer on in November of last year, I got it accepted but not until just recently and now we are battling the clock to see if we can get it closed by February 21st as February 22nd is the day the redemption period is up and then we will have to start all over.