Jay Spencer

I happened upon an article today about an area family who had decided to raise chickens and they were told by the municipality's zoning department that chickens were not allowed. Now while, I don't think I would want the responsibility of every day feeding, tending and whatever else you have to do to take care of chickens; I am awed by someone who wishes to take this on.

Contained in this article was a link to an earlier article about another family, who, too, were raising chickens (I think this makes articles about three different families). One line in article, with a cute picture of one kids and one of the three hens, really set me off.

It had nothing to do with chickens!!!

It was about the City's Chief Building Official not wanting to be in a position to have to make a decision!

Here's what was said:

"As currently written, (the code) gives me the latitude to stipulate the conditions (for keeping

chickens). WE'RE NOT REAL COMFORTABLE WITH THAT FLEXIBILITY."

I just don't get it...HE IS PAID to make these decisions!! If he wants to have the zoning ordinance to be that specific the he can be replaced with a $10/hour person. This person could read the law and then say, "Sorry, but the books says....NO!"

Have we truly gotten to the point where a bureaucrat can't or won't use his God given talents to make a decision?

Here I sit in Grand Rapids, Michigan and it is one of the Chamber of Commerce days. You know the type - the sun is bright, the sky blue with little wisps of white clouds dashed in for effect and the tempurature are awesome.

I was thinking that today is a great day for someone to participate in the real estate market. One of the comments I keep hearing is "I am waiting to make sure we are at the bottom of the market".

I am glad to say, It appears that we have passed it! First let's go back to the fall on 2008. Both the University of Michigan and an Economist from Comerica Bank said that we, West Michigan, would start its' recovery in about a year. GUESS WHAT FOLKS, IT'S BEEN ABOUT YEAR!!

Just in the last several days, Ford reported an increase in sales for the first time in two years. The office furniture index is showing improvement. It was announced yesterday that Michigan firms will divide up $1 Billion to make Electric cars and batteries. Homes sales in the Grand Rapids Area are up for the sixth straigh month. Nationally the home sales are up for the fifth straight month.

All of this is great news! What I think it means is that we have reached the bottom. Interest rates, while still are great, are starting to creep up. Homes are getting multiple offers and in some cases over the list price - one of our clients won out by a single dollar!!!

This tells me that the gap between the listing price and the actual sold price will be closing. Great deals are still out there.

If you don't get in now your are almost about ready to lose $8,000 automatically. The first time home buyer tax credit is set to expire November 30th. The house has to close by then. It may take 45 to 60 days from the date of an accepted offer to close - so you should have an accepted offer no later than the end of September. It may take a while to find a home that you like - you need to get looking now. You don't want to miss that money if you are entitled to it.

Even if you are not a first time home buyer and you have a house to sell; maybe it would be home to be bought by a first timer. I guessing that they will take a break from the market until February or so. They will have missed the $8,000 tax credit and wait to see what, if anything, the government will do to help them.

Get out there and start participating in the real estate market. It's a beautiful day to do real estate!!!!

A couple of weeks ago I met a wonderful person how has been trying to sell her home for the last two years. We were scheduled to meet this week to list the home. She called me to let me know that she may be selling the home on land contract to a friend.

I think it is great that her home is going to be sold, though I did offer some suggestions. I thought I would share those suggestions here:

1. As a seller, make sure you have a clear understanding "Why?" the buyer needs to purchase your home using a land contact. There are a number of variables that would cause one to need to want to use a land contract. Most common would be that they don’t financially qualify for a tradition mortgage product – mostly due to credit issues. In my opinion, I would not allow someone’s bad credit history this to be the only reason not to sell on a land contract – though you need to try to get to the bottom of the whole story. Is the buyer’s situation chronic or a result of a one time event, i.e., divorce, job loss or down sizing, medical issue, etc.

2. How much of a down payment should be paid? On a typical land contract you would want to collect enough to cover your costs (title insurance, closing fee, real estate commission, etc). This might mean that a 10% down payment may be necessary. This means that on a $120,000 house the buyer would need to come up with $12,000. In some cases that may be a challenge for a buyer to come up with.

3. How much would the payment be? There are a couple of ways this could go. In our area the payment on a land contract is typically 1% of the original land contract balance. So, using our example above the original balance would be $108,000 and 1% of that is $1,080/month. You could also use a loan calculator that will allow you to put in all the particulars and give you the amortized payment. Some land contracts also have a balloon payment after a period of time (three, five or ten years). This is when a buyer has to pay the remaining balance after agreed upon time period.

4. How much interest should I charge? Each state has maximum limits on how much interest a seller can charge on land contract – in Michigan it is 11%. This amount is negotiated between the buyer and seller and is dependent on the current market.

These are just some of the questions I get about selling homes on land contract. Feel free to contact me with a specific question you have about your property.

Jay Spencer

Lease Option & Seller Financing Specialist

U.S. Home and Realty

jay@USHomeOnline.com

616-301-7000 x201