Farmington Hills Real Estate and Events talk Michigan

This post is going to tread on ground that a small minority of people still don't know about and don't understand.  In the metro Detroit area we have a few cities where "white flight" is very evident.  Over the years the city that once has a majority white demographics has now gone to a black majority.  As real estate agents we show houses in any city to anybody that wants to look at them.  So today it surprised me when a person at a barbecue asked me where they can "find a black real estate agent".

They told me a story of 83 year old white Southfield condo owner.  They wanted to sell the Southfield condo.  The majority of the residents in the condo complex are no longer white.  So they felt a black real estate agent should be the one to list it so they could sell to a black buyer.

That goes against what we as real estate agents do.  We don't discriminate because of race, color, national origin, religion, sex, family status, or disability because it is illegal by federal law.  If the agent is Asian and lists a Livonia house, they don't sell the house to just Asians.  A Spanish speaking agent doesn't only sell homes in our Mexican Village area.  Sure they may specialize in that area but they don't discriminate.  They help all buyers and sell any home regardless of race, color, national origin, religion, sex, family status, or disability.  They don't stop a Hindu, or a person of Arabic descent from buying it.  If you are an African American agent you don't just have African American buyers.  Caucasian agents will help any buyer find a home.  It is illegal to do otherwise.

When we list your home we put on the MLS which feeds out to "ALL" REAL ESTATE AGENTS.  The MLS feeds the listings out to all sorts of web sites on the internet.  A buyer looking for a Oakland County Condos under $50,000 will call a agent and ask to see all Oakland County condos listed under $50,000.  This Southfield condo willl show up on any search regardless of who is asking.  That is how homes are sold.  The condo or house is open for showing to any buyer that is financially qualified.  It is illegal to refuse to sell a home to any person because they are a different race, and the other discrimination factors.

It is illegal for any agent to "STEER" white people to cities that are more white.  It is illegal for any agent for any agent to "STEER" an Arabic person away from Westland and get them to buy only in Dearborn because Dearborn is pre-dominantly Arabic.  We don't even answer racist questions.  We stay away from questions on what type of people live in the neighborhood.  We tell you to look up the demographics.  We tell you to drive the neighborhood at different times of the day to see if you like the neighborhood.

It is OK to help somebody that wants to buy a home in an area that they feel comfortable in because there are other people like them.  It's OK for us to take the buyer to the city they request.  It's not our job to decide where people live.  WE CAN NOT STEER PEOPLE.  So the bottom line is you don't need a specific ethnicity or race of a Realtor to sell your home.  You don't need a certain realtor to buy a home.  So whether you are buying or selling give me a call I'll show you homes in the cities you want to look in and I will help get your home out on the internet so it is open to all buyers.

If somebody discriminates against you or tries to steer you to a certain city call the local real estate board and make a complaint.   But better yet go to HUD and fill out the online complaint form.  It should not be happening in this day and age.

 Here is some West Bloomfield MI relocation information.

West Bloomfield Michiganis an affluent township in Oakland County ( about 35 minutes from downtown Detroit).  West Bloomfield MI like much of Southeastern Michigan was originally a farming community. Late in the 19th and early in the 20th century, it became a popular lake resort area, accessible from Detroit by interurban railway.  West Bloomfield grew from a farming community, to a lake community, and became a highly desirable upscale suburban community.  Today West Bloomfield is a well developed and well maintained area of single family homes and some up-scale condominiums and apartments.

 According to the 2000 census, the township had a population of 64,860 in 2000. In the Detroit metro real estate market it is widely known for its larger homes, good school district, and being a community with middle to high socioeconomic status with many holding advanced degrees and working in professional capacities in local business and industry. West Bloomfield is a varied community of all races, cultures, and religions.  West Bloomfield has a large Chaldean and Jewish presence. The school district serving the town is the West Bloomfield School District, which is one of the premier districts in the state, and the Walled Lake Consolidated School District serves the city west of Drake Road.

The West Bloomfield school district has a diverse population of 6,633 students. A survey of languages in 2008 indicated 40 different languages represented in the district in addition to English.  Major languages represented include: Chaldean, Arabic, Japanese, Russian, Chinese, Hebrew, Spanish, Korean, Urdu, Hindi, German, Romanian, and Albanian.  The West Bloomfield School district has a 98.4% average daily attendance rate and 94.8% graduation rate.

   The West Bloomfield school district has a highly qualified staff of 450 teachers with 17% holding Bachelors degrees, 82% Masters, and 1% Doctorate.  Their expertise provides a highly engaging learning environment for students at all grade levels.

If you are looking to move to Michigan I hope this West Bloomfield MI relocation information helps you choose a place that fits you and your family.  West Bloomfield is a great place to live.

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West Bloomfield lake homes for sale and West Bloomfield Lake information   

                          Oakland County Michigan lake front real estate                               

Here is part two of my journey of being a Michigan landlord & managing investment properties.  I now have a Canton MI investment property.  But my first experience as a Michigan investment property owner was horrible. I made all the mistakes you could make.

So I am writing this so you don't make the same mistakes I did.

I rented the house and kept the garage to store personal and business equipment.  I also kept a boat on the property during the winter.  MISTAKE.  You have to remember there are problems with this.  The people you rent to see what you are bringing in and out of the garage or the building on the property.  The renters are there all the time.  They have time to get into the garage without anybody knowing.  Remember the people that rent from you aren't rich.  So what you have may seem like a lot.

So your property is enticing to them. 

My experience was two fold.  They broke into the garage.  They actually took the wood off the back side of the garage and crawled into it.  Another time I stored a shrink wrapped boat.  They cut a slit in the shrink wrap and stole the radio, the depth finder, and anything else that wasn't nailed down.

It's no doubt my renters did it.  But I couldn't prove it.  My advice to you is never plan on storing business or personal property on a rental property that have renters living in another part of the property.  You will have theft problems.  Don't do it.

This is my journey of being a Michigan landlord & managing investment properties.  I hope it provides you with experience, so you don't make the same mistakes.  If you benefit I will have done a good thing. 

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I thought I would share my journey of buying an Michigan investment property.  I already have a Canton duplex that I rent out to two different sets of people.  And many years ago I had a house that I rented out for three years.  So I will start

So I do have experience.  My first experience of being a landlord wasn't very good. 

THEFT ----   I only rented the house and kept the garage to store my possessions.  I even stored a boat in the back yard one year.  My tenants learned how to break into the garage and steal stuff out of it.  The boat was shrink wrapped but somebody cut the shrink wrap and stole the radio, the depth finder, and anything else that valuable out of it.

SECTION 8 ---- I rented the home to a lady that lived with a boyfriend which was a no-no for section 8.   So she was conveniently absent and unable to let state inspectors into the house.  The renter had changed the locks on the house so I no longer had a key.  I couldn't let the state's section 8 people in.  it took me six months to get a check from the state because of these issues

DIDN'T PULL CREDIT REPORTS ---- I didn't know how to read a credit report.  If I talked to a person and liked them I rented to them.  No references.  I went on gut feelings.

BEING TOO NICE ---- I bought every story the renters gave me.  They were cut back on hours at work.  They had been sick.  The kids car insurance was due.

I WAS TOO LACKADAISICAL ---- I didn't do yearly checks of the properties.  If they were late with rent I didn't jump on it.  I let somebody get 4 dogs!  I was just happy to have a tenant.

RENTING TO FRIENDS AND RELATIVES.  ---- I didn't know if I was moving in with a girlfriend forever so I rented my house to a friend with my possessions in it.  Damage and theft were just some of the problems, coupled with late rent and no payments some time. 

I hope to teach you by sharing my journey of buying a Michigan investment property.

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Livonia homes for sale and Livonia real estate information

                Michigan Lake homes for sale   

                                                          Metro Detroit real estate    

these questions. 

1.  How has the end of the first time home buyers tax credit affected your real estate market?

2.  Has your market gone up or gone down?  What percentage would you guesstimate that it is up or down?

TAX CREDIT CHANGE - WILL IT AFFECT YOUR POCKET BOOK?

I do some consulting for a New York investment firm and they asked these questions about my local market.  It got me thinking how the end of the first time home buyer tax credit was affecting the rest of the country.

Here in Detroit sign calls and first time buyers have dried up.  I have noticed internet leads are down and phones are a little slower.  Showings are down.  Depending on who you talk to, the real estate first time home buyers market has dropped from 20% to 70%.  But our listing inventory for the Southeastern Michigan area has not changed in the last month.  No increase in our inventory yet.

So what is happening your neck of the woods?  Mortgage people have applications or inquiries dropped?     

Our Southeastern Michigan real estate market is what I would call "stable".  The question came up during a phone call.  An out of state investor asked me on the phone call what our market was like. 

Our local housing inventory has been relatively staying the same. Our local MLS has been averaging between 44 -46,000 home listings.  Here is what that means.  If the housing inventory was growing, it  means homes are not selling as fast.  That homes prices may drop because there is less demand.  If housing inventory was going down it means the real estate market is ''hotter".  That homes are selling faster than they are coming on the market.  It may mean that home prices may be rising. 

But the southeastern Michigan real estate inventory and market prices are relatively stable.  Neither going up in price dramatically or going down quickly.  Which is good for both buyers and sellers.   The investment firm was trying to gauge what the end of the first time home buyers was having on the market.

So as of right now there has been no drastic change in our market because of the end of the first time home buyer credit.    

I had a Redford home buyer tell me today that she thought if she bought a house that had non-homesteaded taxes that it would always be non-homesteaded taxes.  They didn't want to look at houses with non-homesteaded Michigan taxes because they thought they would forever be paying higher property taxes.

That's not the way it works.  A Metro Detroit home becomes non-homesteaded if the property owner does not claim it as their primary residence and claim a homestead exemption.

Examples of when a property is non-homesteaded are:

• a bank foreclosure
• a home that the owner has died
• a home that the owner has moved out of state or out of the country
• a home that is a rental property
• a home that is owned by somebody that has another home with a homestead exemption
• a second home
• a vacation home

Cities only change a home's property tax status from non homestead taxes to homesteaded on May 1.  So if you buy a bank foreclosure on June 30 you will have to pay the higher non homesteaded tax rate until next year.  On May 1 it would change to homesteaded taxes if you filed the homestead exemption with the city prior to May 1.

So I hope this explanation about Michigan property taxes did explain more about homestead and non-homesteaded taxes.  So you can look and buy a home with non-homesteaded property taxes.  If you file your homestead tax exemption you will be paying the lower taxes after May 1 rolls around.

More on Livonia real estate, Wayne County real estate, Oakland County real estate 

Thinking of buying in the metro Detroit area?  Here is information about Livonia real estate and Livonia relocation information.

From the area´s original inhabitants, the Potowatmi Indians, through today, people have always found the Livonia area a wonderful place to live. From its humble beginnings as a farming community, Livonia MI has grown into a town with all the amenities you need to make a comfortable home. Tucked between Detroit and Ann Arbor, any big city features from the cultural to the recreational, are within easy driving distance of your dream home. If you are looking to purchase a home in Livonia or the surrounding area, you can use my websites to gather the information you need. Our mortgage information will help you find the right price range to comfortably suit your life style. From there, you can use the search the MLS button to select the features you´re looking for and narrow down your search to only include the homes that match your criteria. You can research Livonia neighborhoods by browsing our community information and even read our helpful home buyer tips before you enter the Livonia real estate market.

Livonia homes are a mixture of colonial, split level, cape code, bungalow, and ranch style homes built primarily in the 1950-60's.,  A 3 bedroom brick ranch is very easy to find in Livonia. Prices for Livonia homes currently range from $70,000 to $300,000 (2010). We also have some newer brick colonial homes and subdivisions that range up into the $450,000 range.  For people looking to relocate to Michigan, Livonia has a wide variety of beautiful homes and nice neighborhoods.

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One home buying mistake many home buyers make is over-extending themselves by buying a house too big! 

Many people have lost their homes in the last few years because they over extended thenselves.  So many first-time home buyers make the mistake of getting sucked into buying a house too big.  Sometimes its peer pressure.  Showing that they have "made" it.  The buyers get a loan that stretches their budget, the first time home buyer bets on a future increase in income. 

Yes so many people want to get into that  bigger, more expensive home. Sure most people make more money as they get older.  But taxes go up, insurance goes up, and there is always something to fix or repair in a house.  Your mortgage is always going to be one of your most expensive payments in life.  Don't let it ruin your life.  Buy a Michigan home that fits your budget.  One that you can afford to take vacations, one that you can afford to enjoy life.

So don't make this one home buying mistake that many home buyers make.  Don't over -extend yourself.

Wayne County Michigan home buyer articles                     Metro Detroit area home buying tips and advice

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When does it make sense to do a short sale if the bank isn't cooperating?  What I mean by that is the bank being stubborn on the price.  Is the bank refusing to do the sale unless you sign a deficiency?

Let me explain this a little bit.  When you sell your Metro Detroit home via a short sale there is two choices for the bank to make.  They can forgive the deficiency and give you a letter releasing you from any liability from the deficiency.  Or they can refuse to give you a letter.

If the bank refuses to release you from the liability, you are possibly responsible for the deficiency.  Then it may be smart NOT TO DO A SHORT SALE.  Now this is just my opinion.  Why would you go through the whole hassle of doing a short sale if the bank can come back after you for the deficiency?  The only reason I can see to do a short sale versus a foreclosure, is if you can keep your credit in tack and the bank won't report the short sale on your credit report.

From what I have been told is if you can get through a short sale without getting behind on your mortgage payments it is a good thing.  Better for your credit report than if you had 90 day lates on your credit report.  But nobody knows for sure how badly a short sale affects your credit report.  It depends on whether you have late payments or not.

But my opinion is that if you are going to be responsible for the deficiency it is better off to let the home go into foreclosure.  Then you are through with the home.... very seldom do banks go after people that have lost their home in foreclosure.

Now let me say this.  You need to seek legal advice from a real estate attorney before you make these choices.  You should also talk to your CPA or the person that does your taxes.  You need to know all three of these aspects:

1. Your possible legal liability
2. Your future financial liability / ability to get back on the right financial path
3. What this will do to credit / can you survive with bad credit for three to seven years? 

Don't go on my opinion alone.  Get all professional advice from those who specialize in those fields.  They are better to guide you on what to do.  But it is your decision alone.  Choose carefully.

More Michigan home selling tips

Feel free to contact me if you make a decision to sell your home as a short sale.  I will be glad to help you get it sold.

                       Russ Ravary

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My quote of the day:

Most people who succeed in the face of seemingly impossible conditions are people who simply don't know how to quit. 

               Robert Schuller