Senate Bill 77 offers a second chance to claim your Principle Residence Exemption

Great news from the MAR Public Policy Staff… Senate Bill 77, sponsored by Senator Jud Gilbert (R-Algonac) unanimously passed the Senate Finance Committee on Thursday.  This legislation would provide for an additional “Principle Residence” filing date of October 1st

Currently if you buy a home that is “zero % Homestead”, you have to wait until May first to claim your exemption, so if you buy your home on May 2nd, you have to pay 18 additional mills for a year.  This bill will give a second filing date (October 1st) for those who find themselves in this situation.

With all of the foreclosures on the market these days, many of which have lost the exemption due to being vacant for a long period of time, this will be a great savings to many, who have had to shoulder this extra tax burden for months, waiting for May 1st to roll around.

Hopefully this is only the beginning of some great common sense legislation that we will be seeing coming out of Lansing as we all work together towards getting Michigan’s economy back on track.

Thanks to the Senate Finance Committee Chair, Senator Nancy Cassis (R – Novi), bill sponsor, Senator Jud Gilbert (R – Algonac) and committee members Senator Mark Jansen (R- Cutlerville), Senator John Pappageorge (R-Troy) Senator Gilda Jacobs (D – Huntington Woods) and Senator Deb Cherry (D – Burton) for their support of this important legislation.  and thanks to the MAR Public Policy staff for meeting with legislative leaders to help move Senate Bill 77 though the House and Senate.

“Don’t house flippers deserve a profit?”  Following is a blog that I’m “re-blogging” as it is very relevent to what I have been thinking and finding to be true in my area.  I have a couple of clients who do this for a living and what they have done to some of these houses is truely amazing.

(Before photo of cottage in Northern Newaygo County)

Some are estate properties, some foreclosures, but in any case, these folks are not “taking advantage” of anyone’s misfortune, these properties need to be sold, and they need to be improved, and here, of all places, in the land of free enterprise, we should understand that with great risk, should come great reward.

(Old Kitchen)

(Renovated cottage)

(Renovated kitchen)

These investors do a great service to us all, and here are some of the reasons I believe the deserve a good profit:

1.  Risk…These folks are risking a lot of money.  They are taking a gamble that the great expense they go too, to get these homes back in livable (and finance-able) condition will provide them with enough profit to stay in business.

2.  Increased Value…In most cases these investors are taking homes in very poor repair,  and they are bringing them back to life, which increases the value, which in turn, increases the value of other homes in the neighborhood.

3.  Affordable Housing…Finally, they are providing affordable homes in “move-in” condition.  These homes in many cases are not able to finance for most people, or if they are, they need so much work that the buyer is not able to take on the task.  This is a great service to the community, as in most cases these are the first-time home buyers who, if they are unable to find suitable homes that they can actually get a loan for and feel good about living in, choose instead to continue renting.

In closing, I just want to say that I respect those “House Flippers” that are doing it right, they spend a lot of money to make these houses…homes again, and they deserve to sell them for “fair market value.”  The question:  “How much did they pay for it” should really be irrelevant, instead, we should be asking, how much value is there in what they are providing?  If the value is there, let them make their profit, they’ve earned it.

Randy

Old bathroom in "Granny's house"

New bathroom in "Granny's house"

New Kitchen in "Granny's house"

Following is the blog post from Karen Fiddler…Thanks Karen!

Via Karen Fiddler Broker/Realtor (Great Western Realty Group/eVantage Real Estate):

I was out with a home buyer. This was not their first time, we had sold their home a year ago and they have been traveling, visiting family, and RVing across the country….needless-to-say these are my kind of people . But while I relate to them personally and greatly enjoy their perspectives on life, I was surprised to find a prejudice against “flipper” homes.

Because of my respect for this couple, I asked them if I could blog about this issue on Active Rain and make the conversation public. So beware….this is public.

The couple expressed that they felt that there was something wrong with an investor making money off someone else’s tragedy and they didn’t want to contribute….fair enough.

But then as I pondered this, I wondered what’s wrong with someone taking advantage of a financial situation to create wealth?

It must be made clear that these are not people who bought short sales and are flipping them without any improvements, we were looking at home which were purchased at auction (I can tell because of the way our MLS shows the title) and then spruced up and re-listed. Normally these homes have fresh paint and carpet, the yards have been tidied up or replanted and often….the kitchens and bathrooms have had granite or tile installed. They are lovely homes!

So if an investor purchases the home, takes the financial risk, creates value and reaps a profit….all while providing an easy escrow and quality home….why is this wrong? I don’t think it is!

Karen

Karen Fiddler
Broker/Associate
www.great-western-realty.com

Serving all of Orange County, California Real Estate!

Becoming a Homeowner – Now What?

News Release

For more information contact:

Patricia Nieboer, Association Executive
West Central Association of REALTORS®
10443 Northland Drive, Big Rapids, MI 49307
(231) 796-3640, (231)796-3645(fax)

For immediate release

Becoming a Homeowner – Now What?

August 2010

More than 2.5 million people became first-time homeowners last year. Like graduating or getting married, this life-changing event will usher in a new chapter in their lives.  Once new homeowners have their house keys in hand and prepare to move furniture into their new place, one question they may find themselves pondering is, “What happens now?”

One major advantage new homeowners will enjoy is the ability to personalize and decorate their house; renters are often restricted in this respect. Walls painted in a rented home will likely need to be repainted in their original color when the renter moves. Remodeling the interior is an investment a renter will never recoup. In contrast, homeowners have the freedom to strip the interior bare and rebuild it entirely, investing in remodels and upgrades that can pay off in the long run.According to the West Central Association of REALTORS®, websites like HouseLogic.com can provide tips, home improvement advice and how-to’s that can inspire homeowners and help them maintain and enhance their home’s value.  “Closing on a property for the first time is a tremendous accomplishment. It represents the hard work and responsible choices of the new owner,” said Randy Poll, President.

“When you invest in your future through home ownership, the possibilities are endless and HouseLogic can help both new and seasoned homeowners take full advantage of the opportunities that owning a home offers to people. It’s a rewarding experience through which families build lives and memories, as well as their financial futures.”Over the long-term, owning a home helps people dramatically increase their net worth. The most recent data from the Federal Reserve Board shows a homeowner’s net worth is 46 times that of renter’s. According to Poll, home ownership is how many American families begin to accumulate wealth.

“Even given the challenges of today’s market, people who bought within their means with the intent to stay in their homes for more than a few years have the opportunity to build financial stability into the future,” said Poll. “A fixed-rate mortgage might last 15 to 30 years; renting is forever.”

Even so, Poll says purchasing a house goes much deeper than dollars and sense analysis.  “Home is a place of comfort and security,” said Poll. “Owners don’t move as frequently as renters so it encourages stability. Most people don’t want to uproot their families and disrupt established friendships by leaving the community they’ve invested so much in emotionally as well as financially. Homeownership isn’t for everyone, but for over 200 years millions of Americans have owned homes and have enjoyed the benefits. This has not only strengthened families, but also has bestowed immeasurable benefits for individuals and the country as a whole.”

The West Central Association of REALTORS, a local non-profit real estate trade
association, has over 240 members in Newaygo, Lake, Mecosta, Osceola, and
Montcalm counties. Affiliated with the Michigan and National Association of
REALTORS®, it is dedicated to education for professionals, promotion of home and real
property ownership and protection of personal property rights through legislation.

Randy Poll – 2010 WCAR President

Politics…a gentle art…

“Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other.” – Author unknown

(This would be funnier, if it wasn’t so often true)  Hopefully as we head out to vote in the primary election on August 3rd, we can discern between those with empty promises and those who truly have great ideas and a desire to facilitate change. (call me naive, but I do believe we have candidates like this.)

As I’ve said before, and will most likely say again, it is up to us to “let our voices be heard”, we need to take the time to get to know the candidates and the issues and where each stands on them, and then… get out and vote.

Or, will you take the Forrest Gump approach and reach in that box of chocolates and just hope you come out with something palatable?

Whoever you may support…”Let your voice be heard”…VOTE!

Let your voice be heard, get out and vote!

Marc Libants - Candidate for 100th District House of Represtatives seat

As a local association president, I recently had the privilege of interviewing many of the candidates running for office this year, throughout the West Michigan Area and I was really impressed and somewhat surprised at the quality of these individuals.  There are a lot of really good ideas and these folks are very dedicated to bring positive change to Lansing, as well as Washington D.C.

We have had a tough time here in Michigan, with the rise in unemployment, reaching 20% in some areas, and the decline in the housing market, with home values in many cases dropping 25 or 30% and foreclosures on the rise, we are in desperate need of great leadership in our legislature, and I have certainly been encouraged through this process.

This morning I met with Marc Libants who is running for the 100th District seat for the State House of Representatives.  Marc has recently been endorsed by the West Central and Michigan Realtor Associations.

Geoff Hansen - Candidate for State Senate seat

Yesterday I met with Geoff Hansen, who is running for State Senate, Geoff has also been endorsed by the West Central and Michigan Realtor Associations.   We wish these candidates the best in the upcoming elections and appreciate all they have done and intend to do to improve the conditions in our state, especially in regards to the housing market and the protection of personal property rights.

This country was intended to be governed by “majority rule”, but that can only happen if the majority let’s their voice be heard, so make sure that whoever you support, you get out and vote!  The next opportunity for us is in the primary election on Tuesday August 3rd.  This is very a very important election in many of the races and like I mentioned, there are some very good candidates who deserve a good turnout, they are spending thousands of dollars to get their message out there, the least we can do is take a few minutes out of one Tuesday to get out and cast our vote.

These are the people that are going to be making some very important decisions on our behalf for the next several years, so please…”Let your voice be heard.”    Vote!!!

Have a great weekend!

Randy

News Release

For more information contact:

Patricia Nieboer, Association Executive

West Central Association of REALTORS®

10443 Northland Drive, Big Rapids, MI 49307

(231) 796-3640, (231)796-3645(fax)

For immediate release

Benefits of Homeownership: What Matters Most

July 2010

At some point in time most people are faced with the decision to either buy a home or continue renting, and with the expiration of the home buyer tax credit, that choice may be on many people’s minds these days.

Renting can make sense for those not yet ready to take on the responsibility of homeownership, but for those in a position to purchase a home it can offer immediate benefits and long-term value.  According to the West Central Association of REALTORS®, the benefits of owning a home go beyond financial considerations.

“Homeownership is an investment in your future,” said Randy Poll, President. “While financial considerations are certainly important, a lot of today’s buyers are motivated by things beyond just dollars and cents. For many of them, homeownership is a lifestyle choice. They want a place of their own to raise a family, build memories, and be part of a larger community.”

For many people, owning a home is part of the American dream. It continues to be a goal of individuals and families from all walks of life.  The NAR 2009 Profile of Home Buyers and Sellers survey reveals buyers most often cite the desire to own a home as the primary reason for their recent home purchase.

Research suggests that homeownership also strengthens communities. Homeowners are more likely to be involved and engaged in local issues, and they move less frequently than renters. This helps prevent crime, improve childhood education and support neighborhood upkeep.  According to the National Association of Realtors^® study, Social Benefits of Homeownership and Stable Housing, homeowners are more likely to vote and they volunteer time for political and charitable causes more frequently than renters.

“Buying a home provides families the opportunity to establish roots in a community. It’s also proven to be one of the best ways to long-term wealth, with equity accumulation and tax benefits over time,” said Poll.

Data from the Federal Reserve Board shows a typical homeowner’s net worth is 46 times that of a renter’s.  Poll says would-be homeowners should also consider the incredible opportunities offered in the current market.

“The truth is, today’s buyers have a lot of advantages. Inventory is high, prices are affordable and mortgage rates are near 50-year lows,” said Poll. A buyer who’s ready to take the next step should contact a Realtor^® in their area who can help them begin to build their future through homeownership.”

The West Central Association of REALTORS, a local non-profit real estate trade association, has over 230 members in Newaygo, Lake, Mecosta, Osceola, and Montcalm counties.  Affiliated with the Michigan and National Association of REALTORS®, it is dedicated to education for professionals, promotion of home and real property ownership and protection of personal property rights through legislation.

Fannie Mae to crack down on “Strategic Defaults”

Home owners who walk away from their homes, even though they can actually afford the mortgage may be in for an unpleasant surprise, when they go to purchase their next home.  Earlier this month the house of representatives passed a bill barring “strategic defaulters” from obtaining an FHA backed mortgages and now Freddie Mac and Fannie Mae are also cracking down, by not allowing these types of borrowers to obtain a loan for 7 years.

A real estate research firm: Realty Trac estimates that approximately 3 million home owners will get foreclosure notices this year and that over a million of those will actually get foreclosed.  There are currently over 11 million homes “under water” and predictions are that there could be as many as 21 million over the next 3 years. With this many people with homes that are worth less than they owe, many are choosing to just bail, rather than continuing to pay their mortgage, and some speculate the number of borrowers making this choice, may once again exceed 1 million borrowers, over twice the number for 2008 and 4 times the 2007  figures (according to Experian.)

Reports I’ve read also indicated that Fannie Mae could pursue deficiency judgments more often in the future, so walking away, when you don’t really have to (strategic default) may not be a viable option much longer.

My advice is be cautious if you are considering  just walking away from your house, and make sure you check with a knowledgeable real estate attorney as to the laws in your state.  You may want to consult a real estate professional experienced in short sales and foreclosure avoidance as well as your local non-profit housing agency, which the banks are required to communicate with to try to find alternatives to foreclosure for home owners in trouble.

Explore all your options, or you may be just dreaming of your dream home for about 7 years.  7 years can be a long time….look before you leap.