The economy may be facing some challenges, but that didn't stop many buyers from investing in vacation properties last year. NAR's 2010 Investment and Vacation Home Buyers Survey shows vacation home sales rose 7.9 percent to 553,000 in 2009, compared to 513,000 in 2008. Ninety percent of survey respondents plan to use their second home as a family vacation retreat.  Only one in four plan to rent it to tenants. Twenty-six percent intend to make the property their primary residence in the future. The median sale price of a vacation home was $169,000 in 2009, compared with $150,000 in 2008. In contrast to vacation homes, investment home sales fell 15.9 percent to 940,000 in 2009 from 1.12 million in 2008. The median transaction price of an investment property purchased in 2009 was $105,000... 11/29/2010

While the winter months are often considered perfect for spending time with loved ones, they could also be an excellent time to buy a home. You can get yourself a home for the holidays. There is a general perception that real estate activity typically slows down a bit during colder months. Many people don't find the idea of house hunting in the cold very appealing. Also, many families are focused on the school year and their holiday shopping - which tends not to include shopping for a house. This reduced competition can work to a buyer's advantage. With fewer people searching for home loans, lenders are less busy and more likely to give greater personal attention to the smaller pool of buyers. Winter weather can also clue buyers in on whether a house is drafty - indicating the home migh... 11/28/2010

According to poll results from the National Foundation for Credit Counseling, the principal barrier to homeownership is accumulating the money needed for a down payment and closing costs. Of the more than 2,000 poll respondents, only 12 percent said they'd have no problem coming up with a 20 percent down payment, while 49 percent of those polled say they would never be able to save that much. The National Association of Realtors® research found that 61 percent of recent home buyers relied on savings as a source for their down payment and 22 percent were helped by a gift from a relative or friend.  Forty-two percent of repeat buyers used proceeds from the sale of their previous home.  With home equity declining in the recent 5 years, it is not surprising that existing home owners who des... 11/27/2010

There are tax benefits to owning your home, and these should be considered by buyers as an incentive to buy a home before the end of the year.  One of the tax benefits many homeowners enjoy is the mortgage interest deduction (MID).   This tax deductibility of interest paid on mortgages has been an incentive for homeownership since 1913. Individuals can deduct interest paid on mortgage debt of up to $1million. The deduction is available for interest on mortgages for a principal residence and one additional residence.  Sixty-three percent of families who claim the MID earn between $50,000 and $200,000 per year. While the MID is a great benefit, people usually don't buy homes only because of the deduction. They buy homes to satisfy social, family and personal goals.  However, a recent Nati... 11/27/2010

Despite attacks by national media pundits and critics in recent months on the value of home ownership and whether it's still the American Dream, the idea of home and the goal of homeownership continues to resonate with a majority of people from all walks of life. For proof, look no further than the Country Music Awards.   Country singer Miranda Lambert's song "The House that Built Me" won the award for Single of the Year.  A sample of the lyrics reinforces the importance of home: "Mama cut out pictures of houses for you... From Better Homes and Gardens magazine... Plans were drawn and concrete poured... Nail by nail and board by board... Daddy gave life to mama's dream." For many people, owning a home is much more than just a financial decision - it's a place where they build families, ... 11/26/2010

A qualified buyer in winter is generally a very serious buyer.  If you live in Michigan, and are considering placing your home on the market, do not buy into the old saw that you should wait until spring to place your home on the market.  Too many sellers hold off for this, thinking that there are fewer buyers, and they might have more ‘luck' when the weather gets warmer.  I have found the opposite philosophy to be true.  The reason you should consider placing your home on the market during the heavy winter months of December, January, February and March is because every other seller is applying the strategy of pulling out until spring.  This means less competition.  You might say, well aren't there fewer buyers in the winter?  Sure there are, but there are still buyers.  It is importan... 11/25/2010

Let's talk turkey for a minute, shall we?  Being that this is the season for turkey dinners across the USA, I thought I would engage in some turkey talk for this blog post.  Just outside Battle Creek, Michigan, North of Marshall we have the locally owned and operated ‘Cornwell's Turkeyville Farm and Restaurant' where you can go enjoy some good food (usually turkey related) all year long.  In fact they are open for Thanksgiving, and guess what they are serving?  That's right: Turkey.  So when we are talking turkey, it is hard not to wander on over to Turkeyville, which is a great place for the kids too.  Turkeyville boasts an incredible ice cream shop, hay rides for the kids, eclectic gift shop and a dinner theatre.  So if you just do not want to cook your turkey this year, consider taki... 11/23/2010

The following Press Release was made available last week by the National Association of REALTORS®, and I consider it to be a compelling analysis of the current economic conditions and the state of homeownership in our Nation right now, with vital decisions coming up for the 2011 Congress.  I thought it important enough to include in my blog: Washington, DC, November 16, 2010 Although the recent trend of rising long-term borrowing rates may mean higher mortgages for consumers in the coming months, the greater obstacles to housing market recovery are job creation and availability of credit, according to a National Association of REALTORS® analysis. "Modest changes in mortgage rates are less important to a housing market recovery than the number of people who are able to obtain mortgages,"... 11/22/2010

How do I go about selling my home in Battle Creek?  This is a question I get asked a lot in these times with a declining national market place for Real Estate, and an influx of foreclosures that resemble a tidal wave.  The answer can be simple, or very involved.  Dr. Seuss once wrote: "Sometimes the questions are complicated and the answers are simple."  The most difficult answer for many sellers to understand right now is that the ‘added value' items that used to influence an increase in value for a home have zero impact on values when the overall market is slanting downward.  The simple answer for most any seller is: "Price".  The price, which is often regarded as only one of the top ten items of importance in selling a home in days past, is not almost the senior guiding force in many... 11/21/2010

When I became a Certified Residential Specialist in Battle Creek, Michigan there were only ten Realtors in town that had achieved this designation from the Council of Residential Specialists.  Today, there are only six remaining.  The other four appear to have moved away from the Battle Creek area.  What is a Certified Residential Specialist in Battle Creek?  A Certified Residential Specialist (CRS) is a REALTOR® that has earned this certification from the Counsel of Residential Specialists by completing a rigorous course of advanced training on Real Estate, and by meeting significant experience requirements.  It's a rare combination that makes a Certified Residential Specialist more than just another Real Estate agent.  It's the ability to make a real difference in the purchase or sale... 11/19/2010

Single family housing in Battle Creek is the general term used for homes that are a one family home.  This can be defined as any sized home that can comfortably house 1-5 people, but is more often defined as any single group of people living as a family in a single home, as opposed to a ‘multi-family' home which would be like an apartment building as an example.  Single family housing in Battle Creek can be a free standing home, or a condominium.  When one mentions ‘Single family housing in Battle Creek' one typically thinks about a free standing house in a neighborhood, which is the common usage.  So when buying or selling single family housing in Battle Creek, one often draws comparisons for value from surrounding homes that similar in size and location.  Other factors can also come i... 11/17/2010

Owning a home in Battle Creek, Michigan is a desirable goal for anyone who is currently renting.  If you write that check to a landlord each month, and ever have the thought that it would be nice if you could just keep the money, then you should consider owning a home.  Owning a home in Battle Creek, or anywhere, is essentially the same as renting each month, but you are buying something tangible with your monthly payments.  When you rent, you are buying time, or as it could be better defined ‘Time to remain where you are'.  So owning a home in Battle Creek gives one more control over their future, as you are in fact doing a form of investing.  With the change of climate in lending, owning a home is challenging for some, but it can be accomplished for everyone.  Some people may have a l... 11/17/2010

I attended a class just last week instructed by an experienced local lender from Wells Fargo on the subject of FHA loans and gift funds.  First time home buyers often seek help from their family members when buying their first home.  FHA (Stands for Federal Housing Authority) is a government loan program which is directed at first time home buyers.  It requires that a buyer place 3 ½% down of the purchase price of the home as a down payment.  The funds have to be their own, or they can be gifted from a family member.  There are certain requirements that must be met, if one is to use gifted funds as a down payment.  These points are the requirements for Well Fargo, but would apply to most any lender doing an FHA loan, and they are as follows: 1) The gifted funds must be from a family mem... 11/16/2010

There are specific income caps for Rural Development loans in Calhoun County, Michigan.  Each County in the State has a specified income requirements assigned by USDA Rural Development that oversees the guidelines for this loan program.  In Calhoun County, a household income of 1 to 4 people cannot exceed $74,050.00 per year.  The household income of 5-8 people cannot exceed $97,750.00 per year.  The income is verified by the lender by obtaining a copy of the prior year's W-2 and recent pay stub of each working member of the household over 18 years old.  This can include adult children living in the household.  Another credit guideline is that the borrower must have a credit score of 620 minimum if they have clean credit.  If they have a challenged credit history, they must have a credi... 11/16/2010

Country homes in Michigan are in high demand.  Many buyers, first time and seasoned home owners alike often are drawn to this type of property for the solitude they typically offer.  There are unique characteristics of country homes in Michigan that differ from other properties.  Quite frequently these homes have at least an acre of land or more, and are usually on a well and septic system.  It is always recommended that a well and septic inspection be done on any home when purchasing it, but especially on homes that have been vacant.  In fact some Counties such as Barry and Eaton in Southwest Michigan require it before a transfer of ownership or deed can be recorded.  The advantage of a well a septic system is that the water and sewer service are free, however wells need to be cleaned ... 11/16/2010

There are Calhoun County specific requirements for VA loans in Battle Creek, Michigan which should be of interest to the prospective buyer.  One key Calhoun County requirement is that the home must have a pest inspection, and this inspection must be paid for by the seller.  Obviously if signs of infestation are discovered in the inspection, the home must be properly treated and any required structural repair made.  Additional requirements for VA loans in Battle Creek, Michigan include the standard VA requirements of having a VA certified appraiser do the appraisal.  VA loans in Battle Creek, Michigan offer features that are not found in many loans.  A home buyer can receive 100% financing on the home, with no required down payment.  Additionally, it is permitted for the seller to pay up... 11/15/2010

Many home buyers are using FHA loan programs in Battle Creek, Michigan on their first home purchase.  The FHA loan allows buyers to get into a home with a low down payment of 3 ½ % of the purchase price. So for example, if a buyer is seeking to purchase a home at the price of $100,000, the required down payment would be 3 ½ % of $100,000, which is $3500.  Most conventional loan programs require on the low end 5% and on the high end as much as 25% or 30% down.  So you can see the savings right there for the home buyer.  Additionally, FHA loan programs allow for the seller to contribute up to 6% of the closing costs currently, which depending on the purchase price, can often cover a majority if not all of the closing costs.  These closing costs can include buying down interest points on t... 11/15/2010

The city of Battle Creek has been working on a project called ‘Battle Creek downtown transformation' which is a plan for revitalization for the city.  The plan includes an $85 Million dollar project for redeveloping the downtown area with improved curb appeal.  Part of the project involves the Kellogg Corporation establishment of the Food Production Training Institute and the Global Food Production Institute.  The plan also includes an expanded presence of the Kellogg Company in downtown, and their continued expertise in food and nutrition research.  The business of food science and research is the core of the development plan, and is the center of the downtown reformation.  The re-design is also targeted at improving tourism, and many of the facets of the plan include cosmetic improvem... 11/14/2010

Many new homebuyers find themselves asking the question "How do I find out if I am qualified to buy a home in Battle Creek?"  Their first impulse is usually cautious one, and they start looking online.  They find a website heavily advertised that presents itself as helping someone get pre-qualified for a loan online.   As a Realtor in Battle Creek, I would caution any buyer from placing their faith or financial information in the hands of an internet site for the purpose of getting qualified for the largest purchase in their life.  So how do you find out if you are qualified to buy a home in Battle Creek?  Contact a local Realtor.  A Realtor that knows the area will be able to direct you to a competent local lender that has a production record of getting buyers through the hurdles of ge... 11/13/2010

Winterization of homes in Battle Creek, Michigan is something one needs to factor in when buying a foreclosure.  It would be the same for anywhere in Michigan.  If it is vacant, you need to find out if the house was winterized?  The banks usually hire asset companies to do the winterization on homes, but it happens often during the winter that the bank reacquiring a home in the foreclosure process does not obtain possession until mid-winter.  With this occurring, there is a risk of the home not having been winterized before some of the plumbing was damaged by freezing conditions.  When you are shopping for a foreclosure, either as a personal residence or an investment property, you need to factor in winterization of homes in Battle Creek, Michigan.  When a house is winterized by a servi... 11/04/2010