Selling a house? vs. Online dating.

Selling a house ? Its about 1 buyer, not ‘# of hits’, not ‘# of showings’.

Meet & Discuss Further

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35 yrs as a Realtor/ Broker, always as an independent, not a franchise. Why?

Those ‘online dating’ sites make you wonder what you are getting.

  • Wow, lots of lookers! Are they potential/ qualified buyers or just ‘photo surfers’?
  • Ya, lots of dates – aka: showings. But again ready to act buyers … or just neighbors getting decorating ideas or agents using your house to compare against the one they plan on showing after yours?

Franchises are fine. They have a place. But my clients find when they ask for “Mr/Ms Top Producer”, they really get a group of less experienced ‘specialists’ & ‘processors’, etc. lacking a global vision. Marketing ? Those producers do have their systems, yet are they customized enough to make you feel you are getting:

  • All the data you need to make a big decision?
  • ‘Drill down’ marketing that will bring out the ones that really truly want your place (and will pay for it)?
  • ‘Property Specific’ (not plug-n-play/ off the shelf):
    • Comparative Market Analysis (CMA) that takes more than a few minutes. Most Anibal-Group-LLC-RealtyNetWorth-Sell-CMA-Valuation-Analysis-PUBLICare very over-simplified in methods AND accuracy? See my Zillow reviews.
    • Pre-listing ‘to do’ list?
    • Custom made mailers?
    • Website that shows your property ONLY without distracting ‘click-aways’?
    • Web advertising using specific demographics & interests unique to your offering?
    • Videos of not only your property but also the area leading to your home?
    • ‘Adwords’ on different search and social platforms?
  • Your very own portal space – feedback and doc’s area to enjoy (or ignore) 24/7.Anibal-Group-LLC-RealtyNetWorth-YourSpace247 seller

Summary: Make sure your selling agent/ broker can get past the ‘plug into’ format. Quick-n-easy tools are great for the new agent – often simplistic/ standardized. Are they best for you? Remember what you need. A buyer – 1 buyer to be exact.

Are the 1000 hits and 25 showings qualified and interested? or curiosity seekers? It is the ‘drilling down’ on that 1 unique buyer to get the best price with the least interference, at least in my approach!



‘Short Sale’

Short sale? – buyers beware!!

Meet & Discuss Further <|> Share Your Wish List


  • easy,
  • quick,
  • predictable,
  • a sure possibility of condition of property or title history, etc.
  • NOT 

In fact, here are some excerpts from a Anibal-Group-LLCs-RealtyNetWorth-Handyman-Short-Sale-old-housedisclosure for buyers. I think it says it best:


‘…. If you will be frustrated beyond the savings of a short sale, then consider buying a home not under short sale. In other words, be prepared to be frustrated during the attempted approval period…’

KNOW BEFORE YOU BUY A SHORT SALE

  • Buyer and seller are advised that to a degree, all short sales are unique. Every transaction will be assigned to a loss mitigation specialist who will proceed based upon the current and ever changing needs and goals of the lender. What works with one short sale rarely is the same on the next.
  • Buyer and buyer’s agent acknowledge that because we handle multiple transactions, in order to best serve everyone buyer/ buyer’s agent will receive a link to a communications site for updates on the short sale process. Calls made to the office/ agent(s) will most likely not be acknowledged if updates are already posted. Extra calls, texts, & emails do nothing to further the process.
  • Once lender receives short sale offer documents, the lender may need minimum 40-60 days to approve. After approval, the sale must close at lenders approved time frame, often 30-45 calendar days, but may run 2 weeks to 12 months. It is common to receive no updates, no contact, and no calls from the lender.
  • Any ‘seller’ funds are usually paid to lender. The seller will receive no cash except for a HAFA short. The seller will bring no additional cash for any closing costs, buyer’s appraisal or home warranty.
  • Buyer home warranty is recommended by this office, your agent, and the broker, and may be purchased prior to close. The seller may not maintain the property.
  • Should buyer purchase a professional home inspection (highly recommended), the seller will not agree to any requested repairs. Many lenders are going to require certain repairs as a condition for loans, costs will be borne by buyer.
  • Buyer must communicate to seller through buyer’s real estate agent only as a courtesy to all involved parties.
  • Please acknowledge the above _________________

More reading:


 

 



Your Bigger Picture, and ‘Life Changes’

What does that tag line ‘Your Bigger Picture’ on our business card mean exactly? It includes taking a larger perspective on your home sale, first home purchase, vacation home or relocation, and your investment rentals & flips.Anibal-Affiliates-RealtyNetWorth-Lake-Shannon-duck-in-water-1.1

You see, there is indeed a ‘bigger picture’. After this many years in the business I’ve accumulated many stories – good & not so much – of considering a broader point of view. Its not all money. Its not all ‘I want’. Being such a large and potentially emotionally loaded transaction, I really like to mix in some ‘heart to heart’ moments should they possibly help. And really, a caring ear and some outside eyes that have ‘been there/ done that’ may save some heartache later, and hopefully bring some rewards of great ‘future memories’ yet to be made.

The holidays can bring heavy hearts for some. If not you, I still encourage you to make yourself a bit more informed so you might have a bit of empathy to pass along. Hence, I’m posting up an article that has nothing to do with real estate, and yet, many will need to sell and move at a time of ‘change’ such as passing of a loved one. If that’s you or a friend or family member, rest assured I’ll be as patient as possible, and give extra care through the ordeal of a move. Blessings!



When is it time to sell? For everyone its different. Frequently we begin to consider relocating when:

  • We become ’empty nesters’
  • We retire
  • A major change in health of one or more homeowners
  • Loss of spouse
  • New opportunities

Really, there is the possibility for great strife in moving, even for young and strong.

 



 

Assisting with the sale of an Elderly / Retired Person’s home.

When is it time to sell? For everyone its different. Frequently we begin to consider relocating when:

  • We become ’empty nesters’
  • We retire
  • A major change in health of one or more homeowners
  • Loss of spouse
  • New opportunities

Really, there is the possibility for great strife in moving, even for young and strong. So much more are the concerns and emotions as the years go by and we have been in one location longer.

Great care needs to be given in how and who assists in the orchestration of relocating those in our circles of great value, that being a mom, dad, neighbor, aunt, uncle, or dear older friend. You should be ready to give acknowledgement to:

  • Someones increasing physical &/or mental fragility.
  • Their great reluctance to surrender not only the home but so many personal treasured items that may need to be sorted through, sold, donated, or lovingly adopted by others.

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“The house was a symbol of her independence. She was extremely frightened to let it go,” one person said in helping a senior with her real estate transaction.

Nearly 40 % owners over 65 haven’t moved in over 30 years. “For an older person, a home represents their life story.” its been said. Think of holiday gatherings, dinners, or a wall of photos.

There is destination/ relocation planning, tax considerations, seasonal timing to avoid bad weather, coordination of helpers, the list goes on. This is a time to pick a real estate professional with a skill set that fits the situation, think compassion, some experiences with older persons – perhaps an immediate family member(s), and related wisdom is of extra benefit if not sometimes crucial. e.g.:

  • In our office one of my assistants is a retired hospice care nurse – has worked with challenging situation involving medical needs and interaction with the children.
  • My 96 year old mother was recently relocated to a elder care residence after being independent at a Florida condo for many years. We needed to coordinate 3 children in 3 states to assist in the challenging process.
  • We’ve assisted many clients & their family with referrals regarding estate planning, and income tax planning/ filings.

Here are a few suggestions for the children of seniors who want to assist their parents in making a smooth move:

 

  • Show sensitivity when helping seniors sort through their possessions.
  • Be careful before committing to the sale of your parents’ extra belongings. Instead, your parents might prefer to donate their extra belongings to a charity they respect, such as the Goodwill or Salvation Army.
  • Consider showcasing certain select items at your parents’ next home. The display can also serve to jog fading memories or to spur conversations with visitors.


Buying a house site unseen. Would you?

Yes, I’ve helped folks buy ‘site unseen’. This article is condensed but has some of the basics.



Online photos aren’t enough!
Here’s my ‘must do’ list:

  1. Use a local buyer agent that is on retainer/ agreement with you, not just the seller side.
    • I’d advise using a broker that will give you a referral from a client that used said broker more than once!
  2. Go ‘live’ on your walk thru. Interactive, voice/ video, tour in real time with your agent (broker) ‘on the ground’.
  3. Have an inspector give you feedback. Again, best if your broker/agent is live.
  4. Get your trades person that may do upgrades after purchase to give you pre-offer insights in the same way.
  5. Solicit immediate and local area videos – real time again is great. Good to do this during a busy weekend evening.
  6. View map from above. LOOK for train tracks, land fills, factories, freeways, etc etc…. look look look.
  7. Call: local utility for ‘estimate of usage’ for an idea of how weather tight the home is.


Value: Assessed, Market, ‘Zillow’, Taxable

That’s an ‘uuugly house’. It was my 2nd investment & I was a 20 y.o. junior in college. It was also the highest ROI realty investment I ever had!


Market Value = house specific, current, based mainly on aesthetic appeal (new kitchen, Anibal-Affiliates-Realty_NetWorth_3134birchrow-eastlansing-mi-1982-bwonderful yard, location, etc.)

Assessed Value = neighborhood average, historical (old), based mainly on exterior mechanics (size/ age).


Now that we have that established, lets proceed.

Whether helping a seller set a price or helping a buyer write an offer, they want to know my opinion. “So how much it the place ‘worth’?”

  • A seller always picks a number that is highest – e.g.: ‘Well such n such says my house is worth $bla bla bla’.
  • A buyer always picks the lowest number (surprise) – e.g. ‘Well this says its only worth $yada yada.’

Opinion? Not so much, I prefer to provide information. With me & numbers I’ll give you various methods I use & crunch the numbers on YourSpace – YOU choose the value. My accounting & finance degree and nurture of broker fathers background with an economics masters has dictated this style as my preferred approach.


Back to definitions:

  1. Assessed =
    • neighborhood average,
    • historical (old),
    • based mainly on exterior mechanics (size/ age).
    • The assessor used a complicated ‘multiple regression analysis’ to take all properties with in the ‘taxing unit’ and give approximate values to the ‘components’ of homes.
      • i.e.: bathroom #1 is worth $2000, bath #2 an extra $600, #3…$250, etc.
      • 1000 s/f = $XX per s/f, 1001-1500 is worth $X per s/f
      • New roof = $XX less $X for each year its been there
  2. Market =
    • house specific,
    • current,
    • based mainly on aesthetic appeal (new kitchen, wonderful yard, location, etc.)
    • This
  3. , ‘Zillow’ = a computer model spits out this often ‘train wreck’ of a combination of #1 &2.
    • I’ve seen Zillow ‘values’ of $165000 for a home listed at $80k. I’ve seen the opposite, which can confuse a buyer obviously. I’ve seen another house go from ‘Zestimates’ of $183k to $93k to ‘Unknown’ all in the same year that I listed and sold said home for $150k ?? Figure that one out.
    • After all, ‘Zillow’ never walked the neighborhood, or smelled the basement, or saw the standing water in the spring time.
  4. Taxable = as it says. Forget using this number as a value. Your only concern here is if its too high, then you need to protest it.
  5. Bigger Picture RealtyNetWorth Value ? = Have you every booked a flight online? IntegrationCapNotice it says ‘save money by being flexible with travel dates’, yes? If your timing, tax situation, stage of life, & non-financial intangibles aren’t being considered, you may well need a better qualified ‘resource(s)’.

So whats a wise person to do?

The model I use for buyers and sellers is a spreadsheet approach that uses input from both the assessment – which considers the interaction of house basics, and current market sell prices from ‘as close as possible like-kind’ homes. To use one aspect without the other is a huge absence of a critical treasure of data.


Related:


 


When to hold a rental, when to flip a house.

You invest in property. You’re approaching it as either a residence, retreat, rehab, or Anibal-Affiliates-RealtyNetWorth-LakeShannon-why-I-sell-lakefront-young-couple-at-sunsetrental. But which came first, the property or the label? And more importantly, why did you choose one over another?

With such a substantial investment, I hope you have an idea of how you are evaluating on the way in based on your plan for use/ resale/ or rental afterward. So many clients start out with the “well this happened along our path one day so we just…” approach. Maybe o.k. for a garage sale find. But this randomized thinking potentially leaves dollars on the table and years of your life wasted.

Example:

  1. Customer wanted to sell a unit. “Why did you buy it?” I asked. “Well, it was a great deal so we bought it. then we rented it out”. ( A great deal for what ?)
  2. Customer wanted to have a unit inspected. “Why are you interested in this house?” I asked. “Well, I heard rental property is a good idea.” I asked, “Why?” …. he said “I don’t know.”
  3. Customer had a rental. “Why did you buy it?” I asked. “My friend called me and asked if I wanted to buy it.” So I asked, “do you have other rentals and why do you want this one”. He said, “no, first one, we want others”.

None of these folks had a strategy. They stumbled into their situation. In each case, I sat with them, started ‘at the top’, looked for customer strengths/ weaknesses/ and ideal goals.

  1. For customer #1, I said “so you want rentals?” Actually, it had never been profitable as a rental. They sold it for a profit, but the title choice drove up their tax burden. Further, had they made some specific improvements, the profit would have been better. They sold to a hustler by owner, but fortunately we took a better strategy going forward.
  2. For the 2nd scenario client, I tried to not completely make fun of the poor choice of home he wanted to – and almost did had he not called me – buy. Instead, I showed him only 1 more property. We spent an extra 60 minutes of his time, got a house in a better location, less money, newer, better heat/electric + 2 car garage, 2 decks and shed. That property more than doubled in value in a matter of months, and has had only 1 tenant in the 4 yrs. he’s owned it, bringing a good profit from rent and appreciation. The other property – still a mess and not worth much at all.
  3. In situation #3, we sat down and looked at how there is no profit from holding. Further, because of his skills, he’s better suited to rehab than to hold a loosing investment. All profit available on his held house will come from moving it, not holding it. Timing the sale will be the extra expertise I offer.

So the basic questions will still be, what do you have:

  • More or less skills.
  • More or less time.
  • More or less funds.
  • More need for current income (you are in a lower tax bracket), or more need for future (retirement) income, (you are probably in a higher tax bracket).

Based on these answers, there are very specific properties, areas, price ranges, and portfolio management styles (e.g.: you/ us) you’d be better suited for.  Decision time

I meet w/ clients a minimum of 1x/ year. This is a great time for a no-cost initial meeting to chat about what your real estate ideas are. Contact me via the feedback form to set a time & day !


In the meantime, I’m inserting text from an earlier post of mine:


In the early 80’s I picked up a very honest yet motivational ‘how to’ book on real estate investment. In my senior year of college I was set to invest. I actually drove to NJ, looked up as many of these homes as I could, took pictures, and tried to take notes in my then ignorance. After reading the book I bought a shack for $17500, w/ $1000 down, gutted the kitchen and bath, and placed into service what was one of my most successful investments to date.

I’ve used these & other techniques I gleaned from my broker/investor dad, and have shared them with clients for 3 decades.

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It comes down to humble work, patience, time value of money, and good mentors – I had my dad ! I keep a few copies of the book for clients I work with. Let me know if you’d like one.



Real estate bubbles, strategies, and the current market

Are we in a bubble market ? Just read from one of my favorite bloggers who boasts: “15 Anibal-Affiliates-RealtyNetWorth-LakeShannon-why-I-sell-lakefront-young-couple-at-sunsetflips currently in progress. 126 flips completed. 15 rentals properties. Follow me to see how I make money in any market cycle.” So here’s the excerpt & my ‘reply’:

  • “…Low-money-down loans have been available for decades, and that is not what caused the housing crash. Really bad loans to people who should not buy houses is what caused the housing crisis. …”
  • reply: I’m presuming this is a ‘cliff notes’ take on the market since we can’t dispense all knowledge in a post. But my quick 2 cents. As a 2nd generation broker/investor/finance degree holder, bad loans where just a part of the problem. We had funds flowing out of other ‘under performing’ investments…e.g: $’s tend to move from CDs to collectables to stocks to real estate, etc. Further, and this makes the topic more of a localized thing, wages must support prices. Las Vegas had speculators running up prices but buyers weren’t all from out of town so prices couldn’t be sustained. Here in NW Detroit suburbs, we are seeing a lot of new industry coming in and hence price strength above what might be healthy in other parts of MI.

The article goes on to say how the market is not at a bubble stage. I think that greatly oversimplifies. So whats the point I’m making? As in Ecclesiastes 3 “To Everything There is a Season.” With-in 30 miles of each other, I have client investments of which 1 area I feel should be liquidated asap as the appreciation has come fast and peaked, the other could be held for a taxpayer that needs deferred income and no cash flow now, but if cash flow is needed move on. In other words:

  • Look at: investor needs (cash, retirement savings, …)
  • Investor tax situation
  • Investor has more time and abilities or more cash to throw at the portfolio mix
  • General economy but also local economic outlook…. very important.

This isn’t like buying a candy bar.



This is not an offer of a guaranteed return. Always do your due diligence before investing.

What kind of ‘Fixer Upper’ ROI is possible when we’re your Portfolio Brokerage Mentor?

How much can I make rehabbing homes?Info-graphic-appreciating-wealth-build

There are many different approaches. Are you in a high tax bracket and want appreciation, taxed and withdrawn at a future date (like retirement) and wish to accumulate rentals? Or, are you in a low tax bracket/ want maximum returns now/ hence ‘Flips’ make more sense? Looking at our charts, you’ll see cheaper homes are better suited for rentals, but all properties are usually better suited for ‘flipping’.

‘Flipping’ homes is not for the faint of heart, nor for a novice. The TV shows are for entertainment – turn them off. I’ve never watched even 1 episode and I’ve ‘flipped’ houses since 1981. Yes, I’ll be glad to share my entire portfolio results to date with you.

The vast majority of folks loose money on rehabs, making lots of cash for ‘wholesalers’. So how do I know when to use a professional ‘Portfolio Broker’ Mentor? (that would be us). Perhaps when said mentor has a track record going back to 1980 and will say “NO” more often then “MAYBE” OR “YES”.

Prefer ‘hands off’ approach? We ‘joint venture’ with clients – you bring $’s, I bring expertise, your principle comes out first, we split the balance at closing. (there is a formal agreement letter but that’s the short version).

For every property I recommend, There are about 25 that I tell the investor “NO” and then tell them why. I want this to be educational as well as profitable for you – it helps us both!

Anibals-Realty-Net-Worth_2016_EOY_JV_ROI

If you click thru on the link below this photo, you can compare with last year EOY results. There has been some year over year appreciation.

  • In this market, this will plateau and makes these ripe for selling to reinvest a better part of proceeds.

Anibals-Realty-Net-Worth_2016_EOY_RENTALS_ROI

VIEW IN PDF:  Rental and Flips ROI Calculations – EOY16

Rental and Flips ROI Calculations – EOY15

Active client of ours? Request a copy of the below spreadsheet to compare your investments year to year & within your portfolio. This can assist in planning ‘which to keep’ vs ‘which to cut loose’.

  • Non-clients: ‘Remote in’ installation & setup available, or stop in – you don’t even need to bring your laptop.


This is not an offer of a guaranteed return. Always do your due diligence before investing.

Passing Your Home to Your Children.

When/ How/ If: I Should Deed My House to the Kids

There can be some benefits, but also drawbacks to both the gift giver and recipient(s).

(Speak to your accountant/ lawyer/ lender/ and insurance agent for specific advise – the following is excerpts from counsel received and not to take the place of paid advisers in their respective field of licensing.)Anibal-Group-RealtyNetWorth-Senior_Services_woman-elder-2

Some will:

  1. Add the child’s name onto the existing deed.
  2. Make an outright gifting over.
  3. Deed over but reserve a life estate.
  4. Will the property, i.e: a “transfer on death”.
  5. Others consider a revocable trust, irrevocable trust, or a family LLC.

#1, Possibly Tax Disaster.

  • Set up an office visit. There are good reasons, but often more bad reasons to use this strategy.

#2, Outright Gift.

  • Irrevocable, the parent loses control and legal right to stay in home. Perhaps the parents will rent back.
  • Ends the parent’s right to claim any preferences on property tax bills, e.g.: the homestead exemption, being blind or over 65, hardship/ low income exemptions.
  • This can dramatically increase property taxes.
  • If real estate transferred to a child is worth more than what was paid to purchase and improve it, then the child pays capital gain tax on the sale of the property. (The $250k/ $500k MFJ primary residence exemption is not applicable unless you own and live in the property).
  • Children’s (ex)spouse and creditors may have the ability to seize the property.
  • vs. Will at death.
    • If a parent’s Last Will and Testament leaves real estate to a child, parent can change their mind w/ a new will.
  • Additional Parent Considerations.
    • To remove the asset for Medicaid qualification, remember that a transfer of your real estate can make the parent ineligible for benefits for nursing home expenses, depending on when you enter the home. The length of time ineligible depends on the value of the real estate, whether it was transferred outright or retained as a life estate. Generally, its a five years look back.

A transfer of real estate is a “gift” and will no doubt require filing Tax Form 709 with the IRS.

#3, Gift with Retained Life Estate.

  • During life, the parent has the right to live in the property, and at death the life estate ends. Property transfer effectively at that time.
  • Some want to avoid probate after death, and possibly to avoid any court administration of their estate.
  • If the recipient child dies first, the child’s share in the real estate could pass to the deceased child’s spouse, rather than to the grandchildren.
    • vs a parent’s Last Will and Testament may provide that an inheritance would go to grandchildren if a child died before the parent.
  • The parent still loses a significant degree of control. If the parent sells the property, the proceeds belong to the parent and the child (remaindermen), split according to the percentage of ownership determined by IRS life-expectancy tables.
    • Capital gain tax would be owed by the child on his or her gains.
  • If the parent retains a life estate and the property is not sold before the parent dies, then under current law there would be no capital gain at the time of death because its cost basis is “stepped up” to the property’s market value on the date of death. This is a good thing for the recipient !
  • For Medicaid, the parent is deemed to own the entire interest in the real estate for five years after a deed execution retaining a life estate. They will also be the owner of the life estate interest thereafter, the value of which is calculated at the time of application for Medicaid.
  • RE: inheritance tax, the date-of-death value is taxable to the child – not lovely. But, the child gets a step-up in cost basis (easier if inherited at death in my opinion).

#4, Will the property.

  • Call the lawyer. Ok, now, plan for the child to do back flips on how much taxes you just saved him/her/them.

#5, The ‘entity’ approach.

  • The nuances will require coordinated input from your lawyer, CPA/ accountant, insurance agent, with some feedback from a real estate broker and your banker.

Bottom line.anibal-affiliates-realtynetworth_deeding-property-to-children-b

  • The when/ how to transfer should involve your accountant, lawyer, insurance agent, banker/lender at a minimum.

As I’ve told clients for decades: “You’re not dealing with a candy bar.”

More:


 

ROI Strategies for Real Estate ~ Cash now or cash later?

If you expect real estate should involve ROI, then there’s some basics to the outline.

  1. Acquisitions – some we have control, others not – e.g.: inheritance.
  2. Holding – short/ long/ entity/ self held/ purchase for child/ etc
  3. Approach: add value/ flip/ wholesale/ rent/ vacation/ family lease to/ residence with business inside

Most properties will be held for cash income OR appreciation. If you can get both, then neither will probably be optimal.

Regardless, upfront considerations must include:Anibal-Group-LLC-RealtyNetWorth-Senior_Services_woman-elder

  1. What you need from the property: income now or later (cash flow vs appreciation)
    • I look at these like ‘a job’ or
    • ‘retirement investment’
  2. I will invest more:
    • cash or
    • time & talent

So there will be many vehicles and considerations. SD IRAs, set up LLC, Corporation, etc. One of my favorite realizations is that PROFIT is usually made on the way into an investment in THE BUY. Further when you SELL, what can you/will you do with the funds ? Make sure you have another opportunity lined up if you liquidate a great rental. Make sense ?

‘Later’ is not the preferred time to plan.

More:


Local large city property taxes are often far over assessed. v2017.01.24

I’m updating this article.anibals-realtynetworth-realt-estate-brokerage-consulting-relocation-management-property-tax-protests-the-power-to-tax-is-the-power-to-destroy

Below is the original posted 3 yrs ago. This has long been a problem. Why? While I can appreciated ‘work load’ as a reason, it eventually becomes and excuse if its not dealt with on the assessor/ local /state government end. Assessors by-pass state law &/or take advantage of their position to frustrate property owners into being unfairly over taxed. Via interviewing property owners and walking thru the process for clients, I witness first hand the ugly side of the process. I’ll not speculate to far on the gov’t employees side of this – you can figure it out for yourself – but what is the results of over taxation and undue burdens associated with ‘tax protests’ ?

Instability. Show me one neighborhood that prospers from having homeowners uprooted. Getting these properties properly and fairly assessed brings a long term increase in the value of an area. At that point, values and assessments can rightly follow. Why is this so a hard message for the local assessor and his boards of review to understand ?


Recent links:anibals-realtynetworth-realt-estate-brokerage-consulting-relocation-management-property-tax-protests



Original article from 2004 –

According the Detroit News, there is a large inequity from property to property. This is true in most large cities in MI. Further, the local board of review personnel often doesn’t know how to or refuses to assist you, the taxpayer they work for, in the process. The article leaves out important details of interpretation. Don’t assume the house you buy will change property taxes for the better – DO assume they will change with ownership change. We can chat further.

=========

Detroit— Detroit is over-assessing homes by an average of 65 percent, leading to higher tax bills, according to a Detroit News analysis of more than 4,000 appeal decisions over the past three years by a state board.


Lead water in the pipes – since 1986

So much talk of lead in the drinking water in Flint MI these days. Well, I’ve owned 2 homes Great-plumbing-ideas-lead-in-water-flint-miin Flint. I have the same wisdom for those folks as anyone who buys a home built pre-1986.

I recall when I built a home, coincidentally in 1986, that I had to switch from a lead solder to a tin solder. It doesn’t flow the same. But, the point is, per “The Safe Drinking Water Act Amendments of 1986”, homes built before `86 tend to have lead joints so it makes sense to drink & cook with filtered or bottled water. I do.

The law prohibited use of lead solders, pipes, and flux in drinking water systems. Plumbing solder lead content was set at 0.20% maximum. ( previously 50/50 mix w/ tin). It also included wording to require states to enforce the provision.


Rental house ROI & remodeling budgets

Jumping into investment real estate this year ? Good info with a quick easy read, my basic Anibal-Group-LLC-RealtyNetWorthcriteria for useful information:

Here’s a huge oversimplification of the article links shown below:

ROI – your rent should be at least 1% of the purchase & set-up cost of your rental. e.g: You paid $85k to buy and rehab, it better rent for $850. Further, expect around 50% of the rent to be expenses (less if you have a mortgage).

My add to the thoughts: Annually evaluate your properties against each other AND against what else you could swap the lesser performing houses for. i.e: You can sell it for $200k/ it rents for $1250/mo., find another that will rent for the same that 1.costs less OR 2.costs the same but will rent for far more.

Renovations – Think practicality and ROI. Don’t go cheap for cheap sake and don’t over pay because its so snazzy. This is a business, not a glossy magazine.

My add to the thoughts: MANY. We’d need to sit down for this as each person, area, and property has different types of strengths and weaknesses. These need to be evaluated up-front BEFORE buying. I still believe that ‘the profit is made at the time of purchase’.



Married folks note: ‘The Demise of Dower – State Bar of Michigan’

Every year I give feedback to people AFTER there has been a life changing event in their family. I strongly recommend that everyone who buys/ sells/ marries/ has children, etc, 13975257_547728985400158_1961526686294140869_o[1]seek a consultation asap with (at a minimum):

  1. Legal counselor
  2. Insurance agent
  3. Real estate/ tax consultant
  4. Estate planner

‘Dower rights’ have changed in MI. A widows automatic 1/3 interest in her husbands real estate will be altered in April of 2017.

Plan accordingly.

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Storms/ Trees/ Insurance/ Liability

As always, this is NOT to take the place of calling YOUR agent!


What happens if:3808286

  1. My tree falls on my house.
    • A: my insurance should pay
  2. ” and the ins.co. had asked I remove/trim it beforehand.
    • A: I pay
  3. My tree falls on neighbors property.
    • A: their insurance should pay
  4. ” and the tree was dead/ dying.
    • A: I was negligent, I will probably pay
  5. A neighbors tree fell on my house.
    • A: living tree – I/my insurance pays, dead/dying – they/their insurance pays.

You already know that no matter what you asap inform your insurance company with “notice of an event which could give rise to a claim”, even if you’re sure there will be none. Why? You are not the insurance expert AND you don’t know what the future holds. Contact them now.

Basic point: Check your yard for hazards, check with your agent for coverage gaps.


These are short answers.  Again, you are best advised to at a minimum QnA your: Insurable risks professional, accountant, lender/banker, realty professional, legal adviser when changes happen or are anticipated.

If you’d like me to assist further, contact me w/any questions or comments. Recall, using anyone in my referral network qualifies for reimbursed services (FREE) on your next buy/sell activity.

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Great Car Enthusiast Garages – ‘with attached house’ !

Are you one of Michigan’s thousands of ‘car persons’ ? I’ve brokered for 3 decades and owned many classics myself.

If you’re a local, you’ve seen my office just down the street from Boomers Shark Club, home of the famous huge weekly car cruise-ins, or the Dream Cruise in Flint, or the Fenton Dream Cruise ‘tune-up’, or even in Brighton MI (below). If you’re a dealer, you’ve seen me all over the country at dealer auctions searching out sweet unique rides for clients.

anibal-affiliates-realty-net-worth-greatcarcaves-car-show-brighton-michigan

As a local 30+ year real estate broker with loyal clientele & lots of hands on construction & car experience, I’m also great source of hot rod & other car related referrals.

Let me walk you thru your Buy/Sell situation knowing the value of a Great Car Space !


Bonus: Here’s some exceptional adaptive use spaces for Great Car Caves, Showcase Garages, Wrencher Spaces, and Daily Driver Comfort Zones. How do you rate them ?

My dedicated webspace for car lovers ! Great Car Caves – custom garage spaces in MI and FL



 

For your friend at a time of loss.

Remember when you first realized you need ‘something more to offer’ when friends are at a hard time ? I remember well. I felt empty that I didn’t have deeper compassion for a grieving neighbor at a time of traumatic loss in the family. It was time to turn off the 12463529_10208993491577858_96798857_nentertainment and read.

Here is a nice starter list for you to develop deeper empathy and your loved one. I especially like C S Lewis books. He experienced an early loss of a spouse married late in life, a compassionate deep thinker who is easy to follow.

http://www.recover-from-grief.com/grief-and-loss-books.html

I guess the ever growing family counseling library I have is why I’ll sometimes call myself ‘your financial therapist’. If a loss was yours, “….what you are feeling is normal, and you are not alone.”

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Let Me Share A Secret. (aka: Realty Relocations & Referrals)

Let Me Share A Secret.

Real estate nationwide relocation referrals moving

Just read a post about ‘The secret life of Realtor Referrals’. It was something like: ‘oh let me “help” you…you’ll get nothing and I get $$!’ kind of an article.

Phooey to that noise. It didn’t, so we shall, discuss ‘the better way‘.

Here’s MY Secret:

When using the referral process, ask:

  1. What will YOU get/give ?
  2. What will I get/give?
  3. What will THEY get/give?

There should be an obvious ‘WIN/ WIN’ situation, or move on.

For 3 decades my philosophy has always been, if I can’t get for you more than what I get in return, I have nothing to offer – have a good day.

  • A typical broker/agent has no mechanism in place to assist you in the referral/ relocation process, except what they’ll get financially from another office.
  • Further, and what the article skipped over, is the ‘relocation companies’ as well as sites like ‘Estately’. These tend to be mechanisms to, for example, simply grab front page search results and sell the leads to agents. Zillow, Adwerx, and Trulia do similar things but in a ‘flat up front fee’ way.
  • Franchise offices ? Here you get a referral from something more akin to an AutoZone auto parts store sending you to another AutoZone. Fine for auto parts. (Our local NON-FRANCHISE auto parts store actually suggests referrals to shops they have no affiliation with! Yeah !) Again, its often a ‘no services added’ fee. Just keeping the profits in-house, right?

How do you suppose these scenarios affect the transaction without producing a better result ? Well, the brokers/agents I speak with usually have the ‘I pay them X% for what?!!!’ The broker/agents that do take referrals tend to place the lead & client in a lower service level than organically derived customers.

1

Here’s my detailed secret, via http://AllOverUSA.com (yes, a shameless sell), I offer the upfront ‘ugly’ work that should be done by BOTH the person(s) being referred, and the brokerage/agent that will be on the ‘short list’ given to my customer/client that I’m working to forward a file with. Yessir, service for expected fee – novel eh? A buyer/seller needs to be ‘hardened off’ into reality – no agent likes this up front aspect of the realty experience. Further, agents should be screened….drilled and grilled AND be held accountable thereafter. Accountable is of value we the referral comes from a fellow pro much more so then if it comes from your friend or neighbor – after all, will it matter to the agency on receiving end vs. the result will matter A LOT to both the forwarding agency (in this case US), AND the receiving real estate agency.

So what’s my best sell when someone says ‘well, I can just do it myself and save’. Not really, there is NO cost to my clients getting referred and there can be maaaany rewards. AND, yes indeed, I have multiple times used other offices services in the same way I tell clients to use mine – all for the same reasons ! We used to call that “Practice What You Preach”.

All of my LinkedIn articles:


Its been a great summer

  • Its been a privilege assisting customers and clients this summer.20160816182131
  • Its not too late … Shall we grab a bite and discuss YOUR situation ?