Category Archives: Home Buyers

Thinking About Buying? Know Your Credit Score!

Do You Know Your Credit Score?

Calculation Your Credit Score when buying a home

Knowing your credit score or getting a recent copy of your credit report is one of the first steps that you can take toward knowing how ready you are to start the home buying process.

Make sure all the information listed on your report is accurate and work to correct any mistakes. The higher your credit score, the more likely you will be to receive a better interest rate for your mortgage, which will translate into more ‘home for your money.’

Many potential buyers believe that they need a 750 FICO® Score or higher to be able to purchase a home. The truth is that according to Ellie Mae’s Origination Report, over 53% of loans were approved with a FICO® score under 750 last month!

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What You Need to Know About Low-Maintenance Communities

fallen leaves on a lawn in the winterPicture this: It’s winter. It’s freezing. You still need to clear the last of the leaves from your lawn, but you’re finding every excuse to stay huddled inside your warm home and out of the cold, biting air. More than ever, you’re wishing your yard work would just do itself.

Sound familiar? Maintenance and lawn care can be tedious and exhausting chores, especially on the coldest or hottest days of the year. But there are types of residential developments that take care of these chores for you.

The Many Faces of Low-Maintenance Living

Low-maintenance communities, in general, are neighborhoods that provide services such as lawn care and exterior maintenance through an association fee. In a maintenance-free community, especially, little — if any — maintenance is required on the homeowner’s part.

As is the case with any neighborhood, different communities offer different amenities, especially when it comes to low- or no-maintenance living. So to give you a better idea about what to look for in a low-maintenance home, we’ve come up with a quick guide.

Low-Maintenance Townhome Developments

properties along a wide streetIf you want all the space of a single-family home but don’t mind sharing a wall, a townhouse is a great option for low-maintenance living. Though the amenities many vary from community to community, townhome developments typically provide common area maintenance and landscaping.

Low-Maintenance Condominiums

Think of condos as upgraded rental apartments: you have your own space, you can access community amenities, and you can count on someone else to take care of the most mundane chores.

It’s important to note that condos are a type of ownership: when you own a condo, you own everything within the walls of your home. Unlike with townhomes, you aren’t required to care for the exterior.

In addition, condo associations typically maintain the common areas and provide services like trash removal and pest control. Depending on the association, the community may also provide utilities, phone service, and cable or Internet.

No-Maintenance Residential Communities

house common in a maintenance-free communitySome communities, like 55+ communities, take care of more than just the common areas. True maintenance-free communities may also take care of your home’s exterior maintenance, lawn care, landscaping, and services like trash or snow removal.

Real estate options in these no-maintenance communities can include condos, townhomes, and/or single-family homes.

Where to Do Your Research

If a community has an association, check the rules and regulations to learn about what services the association provides. Not sure where to look? It never hurts to ask a trusted real estate agent.

Want to Buy a Low-Maintenance Home? Let’s Talk

We’re familiar with the types of homes and communities found throughout our area, so we’re more than happy to answer any questions you have. Just give us a call at The Bouma Group, Realtors today at 734-761-3060 or email info@bouma.com. Want to start looking now? Check out our real estate search tool here!

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Whose Mortgage Are You Paying?

Renting vs Buying…Either Way, You’re Paying Someone’s Mortgage

Man Paying Someone Money for Rent or Mortgage

Should you be renting vs buying? There are some people who have not purchased homes yet because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich,”

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person with that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 3.94% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy. Let’s get together and talk about your options and see if buying is better than renting for you! 734-761-3060 or info@bouma.com. Start your home search here!

6 Reasons Why Owning a Home is Awesome

Owning a Home IS Awesome!

From personalizing your living spaces to turning a profit when you sell, there are dozens of reasons why first-time home buyers can’t wait to find a home and make it their own. Though there are plenty of benefits of owning a home, here are the six benefits that stand out from the rest.

decorated room in a home

1. You Can Customize Your Space

Whether you want to invest in the latest high-tech home features or paint your walls neon green, owning a home gives you the freedom to do just about anything you want.

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Why Are So Few Homes for Sale?

How is the Lack of Homes for Sale Affecting Buyers?

Detective Buyer Searching for Homes for Sale

There is no doubt that the largest challenge in today’s housing market is a lack of inventory for sale. This challenge has been defined as an “overwhelming lack of supply,” and even a “straight up inventory crisis.”

First American just released the results of a survey which sheds light on the reasons for the current lack of supply.

The survey asked title agents and real estate professionals to identify what they believe are the top reasons for this lack of inventory in their markets. Here are the results of the survey:

  • 47% – existing homeowners are worried that they will not be able to find a home to buy
  • 26.5% – first-time buyer demand is absorbing a large share of available homes
  • 11.3% – existing homeowners’ mortgage rates are lower than the current rates
  • 10.6% – insufficient or negative equity in the home
  • 4.6% – foreign buyer demand is absorbing a large share of available homes

As the survey revealed, there is a shortage of current homeowners willing to put their homes on the market for one of three reasons (see numbers 1, 3 and 4 above).

Is this an opportunity for some homeowners?

The report on the survey explains:

“The crowd has spoken, and it seems in many markets home buyers and sellers alike are ‘imprisoned’ by the lack of housing inventory.”

That leaves a tremendous opportunity for every homeowner not facing these concerns. If you can put your home on the market today, you are subject to far less competition than at any time in recent history. That will result in your home selling quickly and for the highest possible price.

The Bottom Line

While many homeowners are feeling imprisoned for multiple reasons, those who are not handcuffed by these concerns have a once in a lifetime opportunity to sell at a peak selling time. Plenty of buyers have seen what the summer market has leftover and are just waiting for better homes to come to the market. If you’re an anxious buyer waiting for new inventory, let one of our Buyer Specialists get you set up on a ‘flash’. You will receive instant notification of new listings that fit your criteria as soon as they hit the market. Give us a call at 734-761-3060 or shoot us an email at info@bouma.com and we’ll get started!

Ann Arbor Condo Market Report – Summer 2017

Sale Prices Soar for Ann Arbor Condos

Ann Arbor Condo Statistics for August 2017 and Second Quarter

When comparing Ann Arbor condo data year-to-date through August of 2016 to that of 2017, little has changed, except in one very important area. The number of new listings that came to the market was 552 in 2016 and 550 this year, basically the same, as with the number of sales, 455 vs. 447. However, the average sale price of Ann Arbor condos has skyrocketed from $203,743 YTD in 2016 to $252,547 this YTD, an increase of $24%!  The low supply is keeping demand high, which is raising the average sale price. This is also apparent in the average days on the market which has decreased from 31 to 27. Once we see inventory begin to rise, prices will level out. Continue reading

How Buyers and Sellers Have Lost Thousands of Dollars to Email Scams

laptop and smart phoneEmail scams are as old as, well, email, but as the years go by, these scams have become more and more sophisticated. Recently, several home buyers have fallen victim to specially targeted email scams that attempt to rob them of their closing costs — sometimes up to hundreds of thousands of dollars.

These types of scams are devastating both financially and emotionally, especially when your home is involved. But to help protect you from email scams targeting the real estate industry, we have outlined a few tips about what these scams are and how to avoid them.

What Email Scams Are Common?

Though the method through which hackers collect personal or financial information is always changing, there are a few basic types of scams that buyers and sellers should be aware of.

Phishing

fishingThis type of scam attempts to “fish” for sensitive personal or financial information (such as passwords or credit card numbers). Many emails used in recent phishing schemes look legitimate; they may use the name of a trusted company or individual as the sender name, but the email address is slightly different than the company’s or individual’s verified address.

These types of email messages may also ask you to verify information or click on a link, which could install harmful software on your computer. Continue reading

6 Questions to Ask When Considering a Neighborhood with an HOA

community pool with inflatable innertubeLet’s say you have your heart set on buying a home in a community with a swimming pool, a clubhouse, and maybe even a playground or trails. Having access to these amenities often means living in a community with a homeowners association, or HOA.

Generally, an HOA is responsible for keeping the neighborhood looking beautiful — and as a result, keeping property values high. But since no two neighborhoods are the same, no two HOAs will be the same, either.

What You Should Know About the Homeowners Association

Doing your research on homes and communities means finding the answers to dozens of questions. As a savvy home buyer, you’ve probably already considered some of the most important topics early on in your home search, such as the local property taxes and whether the neighborhood is appreciating in value.

But if you’re considering a neighborhood with an HOA, there are a few additional things that you should know. Here are the essential questions you should ask. Continue reading

The 5 Emotional Stages of Buying Your First Home

Ask anyone you meet and they’ll likely recall vivid details about their first roller coaster ride, their first day of school, or their first kiss. A first home purchase is no different! While buying your first home comes with its fair share of ups and downs, it will ultimately be an enjoyable experience you’ll remember for years to come.

elation of buying your first home

Stage 1: Elation

You’ve checked your budget and the numbers all line up. You can now buy your first home! While you’re busy pinning home décor ideas to your Pinterest board, taking a peek at homes for sale in your favorite neighborhoods, and uncorking the champagne, you’re grinning from ear to ear. In no time, you’ll be stepping over the threshold of a home you can call yours. Continue reading

The 5 Greatest Benefits of Homeownership

The 5 Benefits of Homeownership You Need to Know!

Homeownership is Worth Celebrating

Recently, Freddie Mac reported on the benefits of homeownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”

  1. Homeownership can help you build equity over time.
  2. Your monthly payments will remain stable.
  3. You may have some tax benefits.
  4. You can take pride in ownership.
  5. Homeownership improves your community.

Let’s expand on each of Freddie Mac’s points:

Homeownership can help you build equity over time.

Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun reported that now the net worth gap is 45 times greater.

Your monthly payments will remain stable.

When you purchase a home with a fixed rate mortgage, the majority of the payment (principle and interest) remain constant. On the other hand, rents continue to skyrocket. Your housing expense is much more stable if you own instead of rent.

You may have some tax benefits.

According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership.

Here are four items from the Briefing Book:

  • Mortgage Interest Deduction
  • Property Tax Deduction
  • Imputed Rent
  • Profits from Home Sale

You can take pride in ownership.

Most surveys show that a major factor in purchasing a home is the freedom you have to design the home the way you want. From paint colors to yard accessories, you don’t need a landlord’s permission to make the house feel like a home.

Homeownership improves your community.

The National Association of Realtors recently released a study titled ‘Social Benefits of Homeownership and Stable Housing.’ The study explained:

“Homeownership does create social capital and provide residents with a platform from which to connect and interact with neighbors…Owning a home means owning part of a neighborhood, and a homeowner’s feelings of commitment to the home can arouse feelings of commitment to the neighborhood, which, in turn, can produce interactions with neighbors.”

Bottom Line

There are many benefits to homeownership, in addition to these top 5. Have you been considering purchasing a home, but aren’t sure where to start? Check out our state-of-the-art home search here. If you’re ready to get out and view a few homes, contact us at The Bouma Group, Realtors today at 734-761-3060 or email info@bouma.com and we’d be happy to help!

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