Novi, MI

Many times I get the question..... "can I start fixing and painting the house before we close". NO. The answer is no. It is simply a matter of liability for the real estate agents or the seller.

As a buyer you don't have home owners insurance on the property!!! Who will pay if you get hurt? Who will pay if somebody burns the house down? Who would be liable?

The seller doesn't want to pay your medical bills. The listing agent and I don't want to be responsible if you get electrocuted. It's not that you aren't qualified to do the work. But accidents happen. Hospital emergency rooms are full of people that have accidents.

As your buyers agent I can't OK for you to work on a house that you don't own. If the seller said it is OK then we can do it. But the seller is not going to say yes. They never have yet. It would be crazy for them to say yes. If I am the seller's agent I am going to recommend to you the seller not to let the buyer work in the house until they own it.

What happens if the mortgage falls thru? What happens if the buyer loses their job and can't buy the house? What happens if they have painted it an odd color or tore out a wall? Bottom line is there is no rush to fix up the house. I want you to have the house exactly the way you want it, but for the financial protection of everybody you will have to wait.

Just what is due diligence.... Quite simply it means getting off your arse.... and finding out for yourself. Sure we as your Realtor are your go to person, but there is tremendous liability sometimes in getting that info.

Think about this...

I had a client ask me about lot lines. Sure I can make an educated guess but you need to hire a surveyor to find out exactly where the lot lines are.

I had a client ask me whether Novi schools or Northville schools were better. I gave them some independent websites to check out. Because my opinion might be biased.

I had a client ask me what the building codes were and what could he build on the property. Sure I went down to the building department and got the building guidelines. But I make no assumptions on what can or can't be built. I gave him the info, the building inspectors name, the local architects name, and the buyer needs to do the rest.

I had a client ask about the association rules. So I'll be glad to get the by-laws and the association members phone numbers. But you need to ask the questions.

I had a client ask me about the seriousness of a sex offender living down the street. I gave them the website to check it out. And I asked them to call the local police to check out the sex offender. I'll never tell anybody that somebody on the sex offender list isn't serious. Even if they got busted for urinating in public I can't make that judgment call for you. You have to do it.

YOU NEED TO ASK THE QUESTIONS... because I want you to know the answer. Don't rely totally on your Realtor.

• I'm not being lazy
• I might be biased on what I think is the best.
• I want you to here it from the horse's mouth. From the professional. From the source.
• I want to you to be absolutely sure you have the right answer
• I don't want you to think I steered you wrong, if somebody gave me the wrong answer.
• I don't want the liablity that comes with the wrong answer.
• I don't ever want to come across as just giving the answer you want to hear in order to sell the house.

I'll point out where to find the info and who to talk to but I want you to make the decision.

Russ Ravary your Metro Detroit real estate agent serving Livingston, Wayne, and Oakland County

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This is a Novi Short Sale that I listed and closed. My sellers needed to sell. They were both affected by the economic downturn and were unable to continue paying for their monthly mortgage payments. Their incomes were reduced to more then half of what they were making at the time the mortgage was originated. The Sellers were thrilled with my services. Without a Short Sale, they would have been foreclosed on. This would result in years of debt and probable litigation.

Some Homes have become an anchor that prevents the owner from progressing with the rest of their lives. A SHORT SALE can cut the rope which allows the seller to move on to a brighter future with out the baggage of the past.

PROFILE:

Location: Island Lake Orchards, Novi, MI

Type: 2006 Toll Brother's Single Family Home, 3814 Sqft, 4 bed, 3.1 bath, basement and garage

Condition: Fantastic with granite counter tops, remodeled baths and more.

Lender #1: Country Wide/Bank of America

Amount Owed: $634,000

Lender #2: Community Choice Credit Union

Amount Owed: $90,000

Sold Price: $490,000

List Date: 02/07/2009

Closed Date 09/02/2009

Negotiation time: 2 month

Amount owed by seller post closing: Promissory note on the 2^nd lien.

Seller's out of pocket costs: 0

Hardship: loss of income, failing business and need to reduce expenses.

Happy Seller, Happy Buyer and One less Foreclosure in Michigan.

Call me, I can help

Sell My Home to Stop Foreclosure Now

Mike Sher

Office: (248) 644-4700x242 Fax :(248) 499-1020
4120 Telegraph Rd, Bloomfield Hills, MI 48302
E-mail: mike@mikerealtor.com

Blog/Profile: http://activerain.com/mikerealtor Web: www.mikerealtor.com

Linkedin: http://www.linkedin.com/in/mikesher CDPE: http://hosted.cdpe.com/MikeRealtor/

he Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market. If you have to sell and can not, perhaps it is time to look at a Short Sale. The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

Here is a quick explanation of tax pro rations. In the Metro Detroit real estate market we pay our Michigan property taxes in advance.

So whether you are buying Livonia real estate or Farmington Hills real estate you will owe the seller back the tax money they have already paid.

I am just going to explain about summer tax pro rations in this blog. Each year the homeowner pays their summer taxes on July 1. So this year we paid our Michigan property taxes on July 1, 2009. They are paid up until June 30, 2010. So if the seller sells his house on October 30, 2009 he hasn't used 8 months of property taxes. From October 30 to July 1, 2010 is taxes the seller has paid for but not used. The seller want his unused tax money back.

The buyer has to pay the unused Michigan property taxes back to the seller. This is common practice when selling a home. There is no way around not paying tax pro-rations.

I hope this explains a little bit about why you have to be prepared to pay tax pro-rations at closing. So many home buyers are not told about this and are surprised by this extra amount of money they need.

Russ Ravary your Metro Detroit real estate agent serving Wayne, Oakland, and Livingston Counties

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in the Michigan real estate market. Yes time is running out on 2009 first time homebuyer tax credit. Only 61 days to have a signed purchase agreement and 30 days to get the mortgage done. So many people are forgetting that on the average it takes a month to get a mortgage completed.

If there is no extension to the first time homebuyer tax creditthe deadline to purchase a home is December 1, 2009. That means you have to close on the home by December 1, 2009. Not be in process with the mortgage. Not sign the purchase agreement. The HUD 1 settlement statement has to be from before December 1.

So if you have been waiting around or not actively looking for a house because you thought you had lots of time..... Get going. On the average most first time home buyers take from one month to three months to find a home.

As of today in the Michigan market you have 61 days to buy a home if you need to have a mortgage! 61 days. And the second reason to get out there looking right away is that all the first time homebuyers are going to be scrambling to find a house in October. I think there might be some bidding wars on the nice houses.

So don't wait to the last minute and miss out on the first time home buyer tax credit.

Russ Ravary your Metro Detroit real estate agent

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