Farmington Hills, MI

Sharp Spacious Cape Cod!

• 3 Bedrooms
• 2 Full Baths
• 1,605 Square Feet
• Built in 1983
• Farmington School District
• 1st floor master suite
• 2 nice size bedrooms with full bath upstairs
• Kitchen with oak cabinets, appliances (stove, refrig, dishwasher and disposal) and breakfast area
• Formal dining room and family room
• Natural fireplace in great room
• Both baths are updated with new vanity and marble counters
• Basement is great for storage.
• Newer windows throughout
• 2 car attached garage
• Huge deck
• Great size backyard
• Above ground pool

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Tim J. Thrift

248-830-4832

When buying a home it may take a comparision between the homes. In this example I will use a piece of Farmington Hills real estate and a Canton Township home. When you start making your decision you of course write down what you like and what you don't like in a home. But you should also do a financial breakdown. By doing a financial comparision you may find some surprising differences.

Where the comparisions may differ in prices are

• association fees - different complexs and subdivisions have different homeowners association fees. So be sure to include that in your comparision.
• PMI - You may be choosing between two different price ranges. On the higher priced house you may not have enough down payment to cover the 20% down. You may be required to pay PMI because you don't have the 20% down. This can be costly, so be sure to include this.
• homeowners insurance - different cities have different insurance rates. Call a local insurance agent to get a quote. It may make you change your mind. You may not have realized how bad the crime was.

Here is the info on Both houses. I just estimated interest rates and the PMI. The PMI may be higher.

Canton Farmington Hills
purchase price 224,000 300,000 deposit 40,000 40,000

Association fees 2220

taxes 6008 6742

taxes broken down monthly 500 561

loan amount with 60k down 179,200 260,000

payment at 5.5% 30 year 1017.48 1476.25

monthly taxes 500 561

homeowners insurance 70 70

association fee 185 PMI 100 ______________

_______________ ________________

Total $1587.48 $2392.25

Sure you may love both homes but the financial considerations should over ride your loves. Sure you love that $300,000 Farmington Hills home. If you can't afford the house payment THEN DON'T BUY THE HOUSE.

If it is a major stretch for your financials. THEN DON'T BUY IT. I want you to own the house five years from now. I don't want you to be house poor. I want you to enjoy your house. I hope this break down gives you an idea of how to put together your comparision.

Have a great day!

Here is why the bank took a lower cash offer over your offer on the Farmington Hills home.

Banks prefer cash deals for these reasons:

• cash deals can close within a month. They close quicker than mortgage deals that take 30 to 60 days..
• cash deals don't require an appraisal. There is no chance that the deal will fall apart because the house didn't appraise.
• cash deals don't have a mortgage. The deal can't fall thru because of mortgage problems such as debt ratios, and underwriting issues.
• cash deals don't depend on the buyer having a job. If the buyer loses their job on a mortgage deal the deal is dead. With cash deals it can still close.
• cash deals have already proved they have the money. When you put in a cash offer you must get a proof of funds letter. The letter comes from your bank and states that you have a certain amount of money in your account.
• cash deals will be accepted when there are repairs that will need to be completed for a FHA loan, VA loan, or a conventional loan.
• cash deals don't have an out. If you don't close with a cash deal you lose your money. If you have a mortgage you can get your deposit back if the house doesn't appraise or if the mortgage doesn't go through.

Many times banks will take a lower cash offer over a mortgage offer. It just depends how big of a difference there is. I lost a deal on a piece of Livonia real estate on a cash offer. The list price on the Livonia ranch was $61,000. My clients bid $81,000. The bank accepted an offer of $55,000.

That was a $26,000 difference.

I hope this explains why the bank took a lower cash offer on the Farmington Hills home you loved.

Farmington Hills real estate

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Preparing your pet for a move

Here is a quick glimpse of Farmington Hills Condos that are currently for sale. You see there are quite a few condos that are priced under $60,000. This year I have helped quite a few young people get into condos. I had a couple of buyers that bought condos for cash. They are going to live in these condos and have a lower payment than they can rent for. And they own the place.

Some of these condos my clients have bought were very nice. Move in ready, freshly painted. Quiet condo associations. I have helped clients buy stand alone ranch condos for $75 a square a foot that were spacious, newer, move in ready, and in a gated complex. I have seen 2500 square foot condos for under $150,000. There are lots of good condo deals out there..... and still quite a few good home deals.

Price Statistics Legend

If you have any questions or would like to get started looking for your own home give me a call. I will be glad to sit down and go over your goals.

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Farmington Hills, Michigan data

Farmington Hills real estate MI

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Information courtesy of RealComp Ltd II