With the glorious fall Southeast Michigan experienced this year, and more warm days than cold, it’s hard to believe it’s time to think about winterizing your Ann Arbor Home. But the frigid days are just around the corner, and an occupied house still needs a few important tasks completed. Here are a few tips to get your home winter ready.

• Exterior Spigots. Turn off the water from the inside, turn on the spigot outside to drain, disconnect and put away your hose. A burst pipe can wreak havoc and the cold weather will crack your hose.
• Air Conditioner. If your unit has a shut off valve, turn it off and drain any hoses. Remove window units and store.
• Sprinkler System. If you have an in-ground sprinkler system, have the lines blown out. Simply draining it can leave water in the pipes which will freeze and cause damage.
• Clean Gutters and Downspouts. Make sure leaves aren’t clogging your gutters and downspouts, hampering water flow. Ice dams can form in blocked drains and water can back up and freeze causing damage to your roof and home.
• Heating System. Replace your filter and get your furnace tuned up. Many companies offer free annual check-ups. If there are any problems you can address them now before temperatures drop.
• Thermostat. Reprogram your thermostat so it is turned down when no-one is home and at night. This will save you money on your heating bill.
• Reverse Ceiling Fans. Most ceiling fans have a switch that reverses the blade direction. By doing this, warm air is pushed downward and recirculated keeping the room more toasty.
• Wrap Pipes. Frozen pipes are the last thing you want. If you have pipes that run through unheated areas, be sure those have an insulating wrap protecting them. Likewise, interior pipes that feel warm to the touch should also be wrapped to save energy.

Do you have anything to add to the list? Please leave a comment with your winterizing tip! For more home maintenance tips, or to find out what your Ann Arbor home is worth in today’s market, give us a call at 734-761-3060 or email us at info@bouma.com. And be sure to check our Ann Arbor real estate blog regularly for market updates, subdivision reports, current mortgage rates, community events and more!

Mortgage scams are at an all-time, record high. According to FinCEN (Financial Crimes Enforcement Network), suspicious activity reports were up 31% from the first quarter of 2010. Although this sharp rise is in part attributed to cases going back several years that are just now being uncovered, there is a new scam that Ann Arbor homeowners should be aware – hijacked mortgage payments.

Here’s how it works: the homeowner receives a letter in the mail from Bank B claiming that they have purchased their mortgage from Bank A. The letter states that the homeowner should start sending their loan payments to Bank B, who now holds the mortgage. Since banks buy and sell mortgages on a regular basis, the homeowner may not think this is fraudulent and begins making payments to the ‘new’ bank. They usually don’t realize they’ve been scammed until a month or two later when they’ve missed payments with Bank A.

Homeowners should know that the FDIC Mortgage Servicing Laws require that they receive two letters. One from the current company notifying them that as of a specific date their payment should be sent to a new company and one from the new company that provides mortgage payment information (principal, interest, and escrow). Both letters should include the loan number. You should also contact the original bank to verify that the loan has been sold and the letter they received is legitimate.

If you suspect that you have been a victim of mortgage fraud and are unsure of what to do, give us a call at 734-761-3060 and we’d be more than happy to advise you. If you are thinking of purchasing a new Ann Arbor home or condo in the future, be sure to start with our state of the art Ann Arbor real estate website where you can: View Our Buyer Services, Search for Washtenaw County Homes, and Visit the Mortgage Center.  We look forward to assisting you with your next real estate transaction!

The most successful investor and third wealthiest person in the world, Warren Buffet, recently shared his belief that real estate is still a good investment. He stated “The third best investment I’ve ever made was the purchase of my home” with the first two being wedding rings. In his annual letter to shareholders, he points out that, “Home ownership makes sense for most Americans, particularly at today’s lower prices and bargain interest rates”.

But, he advises to use caution when purchasing real estate and follow these tips:

• Only purchase a home that you can afford. Don’t bank on growing into your house payment. Be able to afford it now, including having extra cash for unexpected events.
• Buy low. Now is the perfect time for this, as housing prices are at an all-time low. Any market is impossible to predict, so don’t wait to take advantage of it.
• Get a fixed mortgage. In the past, in order to afford their house payment buyers opted for a variable rate with the hopes their home would gain value and they could refinance into a lower payment in the near future. When the housing market went south, home values did not increase, rates increased, and homeowners could no longer afford their payments.
• Plan on a long term hold. Home values fluctuate, but statistics show that over time real estate values increase. Plan on owning your home for at least 10 years to realize a return on your investment. Warren Buffet actually still lives in the Nebraska home he purchased 52 years ago for $31,500.

Spring is here and the Ann Arbor real estate market is full of great deals. Whether you’re buying or selling a home, The BoumaGroup can answer any questions you have about real estate in Ann Arbor. Thinking of settling down in Washtenaw County, Dexter, or a specific Ann Arbor neighborhood? Call the Bouma Group today. And don’t forget to check out our Condo Hotline – we know the Ann Arbor Condominium market better than anyone!

If you are a Washtenaw County property owner, within the last 2 weeks you should have received a Notice of Assessment, Taxable Valuation, and Property Classification letter from the city or township where your property is located. This letter states what the taxable value and the assessed value are for your home for the current year 2011 and the past year 2010. After reviewing this information, you may not agree with the current assessed value of your home and the taxes you are required to pay, based on recent home sales in your neighborhood.  If you feel that your property assessment is too high, here is some important information that may help you protest your assessments at your local board of review.

The date for filing Property Tax Appeals is quickly approaching. Here are some helpful dates to keep in mind:

• October 1, 2009-September 30, 2010: This is the sales study period. Assessors use home sales from this time frame to calculate 2011 property values.
• December 31, 2010: Tax day for 2011 assessments and 2011 property taxes. No sales after September 30, 2010 will be used to calculate home values (except in special circumstances).
• March 2011 Beginning the Tuesday after the first Monday: This is when the Boards of Review will be meeting with homeowners to discuss appeals. You must make an appointment. Check your Notice of Assessment for the phone number to call and the exact dates they will take appointments. Keep in mind that this date changes based on municipality so please check with your jurisdiction.
• May 1, 2011: This is the last day for Homeowners to file a PRE, Principle Residence Exemption form. You can read more about it on the Michigan Taxes website.
• July 31, 2011: The deadline for filing residential appeals to the Michigan Tax Tribunal. You must have already protested your tax assessment at the local review board in order to take it to the MTT.
• December 31, 2011: Tax day for 2012 assessments and 2012 property taxes.

A more in depth chart of appeal authorities and dates can be found here: http://www.michigan.gov/documents/treasury/STCBulletin19of2010_340266_7.pdf

According to Brian Kirksey, Senior Appraiser with KRES, Inc. before you start a property tax appeal, you should ask yourself the following questions:

• What is the disparity between assessed and taxable values?
• Is the assessment correctly reflecting your property? ie. Correct square footage, lot size, etc.
• What do you believe the property is worth , and in terms of taxable value?
• What is risk involved and associated rewards gained in appealing, based on a win, split, or lose decision?

If you decide that a property tax appeal is the right decision, schedule the appointment now. For your appointment, you will need support for why you are appealing and a recent appraisal by a local appraiser is the best way to go. The Bouma Group recommends Rachael Massey, a certified Residential Appraiser for Washtenaw County, 734-761-3065. As always, should you have any questions or are thinking of buying or selling an Ann Arbor area home, contact us today at 734-761-3060 or info@bouma.com.

Refrigerators and Freezers

• Adjust the thermostat. Because it cycles on and off all day, your refrigerator consumes more electricity than any appliance in the home (aside from the heating and cooling system). When you set the thermostat colder than it needs to be, you could be increasing your fridge’s energy consumption by as much as 25%. Adjust the refrigerator so that it stays in the 37-40F range. Try to keep your freezer between 0-5F. If your model doesn’t display the current temps, invest in two appliance thermometers (one for the fridge, one for the freezer).

• Clean the coils. As dust accumulates on the condenser coils on the rear or bottom of the fridge, it restricts cool-air flow and forces the unit to work harder and longer than necessary. Solve the problem by vacuuming away the dust that accumulates (every six months or so). Also, make sure there’s at least a 3-inch clearance at the rear of the fridge for proper ventilation.

• Use ice cube trays. Automatic ice makers are a nice convenience, but it turns out the mechanisms are energy hogs. They’re also prone to frequent problems. By switching off the ice maker and using trays, you can avoid potential problems, while saving about $12 to $18 on your annual electricity bill. Most units require little more than a lift of the sensor arm to switch them off.

• Unplug the extra fridge when it’s not in use. Many homes have an extra refrigerator that runs year round, even though it’s used sparingly – a real dollar waster. To save energy, and get the most mileage from the unit, make sure the extra fridge remains three-quarters full at all times. This helps maintain a steady internal temperature, and lets the fridge recover more quickly after the door is opened and closed.

Ovens and Ranges

• Cut the power early. If you’ve ever bumped a burner on an electric stove, you know that those heating elements stay hot long after they’ve been switched off. This is an especially prevalent mishap during the holidays, when everyone wants to help out in the kitchen. Put the residual heat to work by shutting off the burner several minutes before the end of the cook time. Do the same with your oven.

• Match the burner to the pan. By matching the burner to the pan, electricity won’t be squandered heating the kitchen rather than the food. The reverse is true, too. A small burner will take considerably longer to heat a large pan than would an appropriately sized burner. For gas stoves, don’t let the flames lick the sides of the pot.

• Stop preheating. Experts agree that unless you’re baking breads or cakes, this practice is completely unnecessary. You may need to add a few minutes to the overall cooking time, but it eliminates all that wait time (and energy waste) on the front end.

Dishwashers

• Activate energy-saving features. A dishwasher’s heated dry cycle can add 15% to 50% to the appliance’s operating cost. Most machines allow the feature to be switched off (or not turned on), which can save $8-$27 per year. If your dishwasher doesn’t have that flexibility, simply turn it off after the final rinse, and open the door.

• Use the machine. Many homeowners believe they can save water and energy by hand washing dishes. The truth is that a dishwasher requires less than one-third the water needed to wash those dishes by hand. Run the machine, and you can cut down the operating time of your hot water heater. Plus, you’ll avoid the frequent occurrence of accidents with knives and glassware.

Enjoy a relaxed holiday season in your Ann Arbor home! Martin Bouma - your Ann Arbor expert – can help you find the perfect piece of Ann Arbor real estate. Whether you’re buying or selling a home, the Bouma Group can answer any questions you have about real estate in Ann Arbor. Thinking of settling down in Washtenaw County, Saline, or a specific Ann Arbor neighborhood? Call the Bouma Group today! And don’t forget to check out our Condo Hotline – we know the Ann Arbor condominium market better than anyone.

Affordability of housing is one of the best ways to make more people homeowners. Government-backed mortgage insurance can help to lower loan costs, and a variety of public and private programs offer low-cost loans and down payment assistance. You can help prospective homeowners save down payment funds by donating to sites like EARN, a non-profit company that uses donations to match funds saved by low-wage earners.

Especially in the current housing market, foreclosure hurts all homeowners. Each foreclosure within 1/8th of a mile of your home lowers your property value about 0.744 percent, according to estimates by the Center for Responsible Lending. Every home owner whose neighbor loses their home to foreclosure is affected; if your next door neighbor loses their home, your home’s value decreases. Individuals who go through pre-purchase and post-purchase counseling are less likely to face foreclosure. You can help, by encouraging potential home owners to seek such counseling; they’ll learn about mortgages, budgeting, and home maintenance.

Another way to do your part to help other home owners is by donating your time or money to some of the many non-profits that promote responsible home ownership. Habitat for Humanity partners with new home owners to build affordable housing. Habitat homes aren’t free; home owners work hundreds of hours, receive home ownership counseling, and make regular mortgage payments. The United Way supports many local programs that build affordable housing, help families build financial assets, and teach financial management skills. If you donate to The United Way, you can direct your contribution to those causes.

Enjoy the benefits of home ownership in Ann Arbor, and help others reap the same benefits. Let Martin Bouma – your Ann Arbor expert – help you find the perfect piece of Ann Arbor real estate. Whether you’re buying or selling a home, the Bouma Group can answer any questions you have about real estate in Ann Arbor. Thinking of settling down in Washtenaw County, Saline, or a specific Ann Arbor neighborhood? Call the Bouma Group today. And don’t forget to check out our Condo Hotline – we know the Ann Arbor condominium market better than anyone!

According to the Michigan Department of Natural Resources and Environment (DNRE) the state has issued 13,641 deer hunting licenses in Washtenaw County so far this year, while statewide, sales have reached about 1.3 million. Firearm season for deer runs from November 14 through the 30th; archery season begins December 1 and runs through the 30th.

A Hunting Hold Harmless Agreement is a simple document, used by home owners with anyone they allow onto their property for hunting purposes. Signers of such an agreement waive any claim against the owner of the property on which they are hunting. The hunter agrees to indemnify and defend the homeowner in the event that their hunting causes injury to another person.

Michigan law states that a property owner has a duty to warn individuals (such as hunters) of hidden defects on the premises, or other features that could cause or contribute to injury or loss. If money is exchanged for allowing others to hunt on an individual’s property, this duty to warn is even greater. Generally, the property owner is required to make the property reasonably safe, warn others of known dangers, regularly inspect the property, and make all necessary repairs. Even if no money is exchanged, the homeowner can still be held liable if a situation occurs resulting in injury or property damage.

Martin Bouma - your Ann Arbor expert – can help you find the perfect piece of Ann Arbor real estate. Whether you’re buying or selling a home, the Bouma Group can answer any questions you have about real estate in Ann Arbor. Call the Bouma Group today! And don’t forget to check out our Condo Hotline – we know the Ann Arbor condominium market better than anyone!

Super Quick Fixes

• If you don’t have smoke detectors, install them now. If you do have them, change the batteries and test the detectors to ensure that they’re working properly.

• Inspect your roof for missing or cracked tiles. If repairs are needed, get them before snow and ice force you to wait until spring.

• Vacuum the coils on the back of your refrigerator. This will help your fridge work more efficiently, saving money on your power bills.

• Flip your mattress. Turning your mattress regularly will extend its life.

• Get your heating system serviced to ensure it’s in good working order.

Things That Require a Little More Time, But Are Well Worth the Effort

• Oil your power tools and, if you have a gas-powered lawn mower, drain the gas from it.

• Check all taps for leaks. Pipes can burst if they freeze, so if you leave home for more than a few days, turn off the water and drain the pipes.
• The cold doesn’t deter burglars so be sure to inspect your locks and any burglar alarms and consider using lighting timers for that lived in appearance.

Prepare an Emergency Kit So That These Things Are Within Easy Reach

• A small tool bag with a flashlight, a roll of insulation tape, spare fuses, spare batteries, and a screwdriver

• A small fire extinguisher

• Important telephone numbers like the police, plumber, electrician, and your home insurance company

Winter weather is here, and Martin Bouma - your Ann Arbor expert – can help you find the perfect piece of Ann Arbor real estate. Whether you’re buying or selling a home, the Bouma Group can answer any questions you have about real estate in Ann Arbor. Thinking of settling down in a Ypsilanti home, a Saline property, or the Hunters Ridge neighborhood? Call the Bouma Group today! And don’t forget to check out our Condo Hotline – we know the Ann Arbor condominium market better than anyone!

Tip #1: Wrap your heater in a blanket. Water heaters are often located in unheated areas, making insulation critical. Cutting heat loss by using an insulating blanket (usually priced around $30) can save 4%-9% on the average water-heating bill. Be sure to check with your manufacturer’s guide; some new models of water heaters already contain insulating foam, making a blanket unnecessary.

Tip #2: Install low-flow fixtures. The easiest way to cut hot water costs is to use less of it. According to the American Council for an Energy Efficient Economy (ACEEE), a family of four uses about 700 gallons of hot water each week. Installing inexpensive ($10-$20 each) low-flow shower heads and faucet aerators can produce reductions of hot water by 25%-60%.

Tip #3: Take your water heater’s temperature. Most water heaters leave the factory with a high temperature setting. Reducing the temperature by just 10 degrees can cut your bill by 3%-5%. A setting at 120 to 140 degrees is hot enough; settings below 120 degrees can create a breeding ground for bacteria.

Tip #4: Drain the sediment from your tank. Tanks naturally build up sediment, which reduces the overall efficiency of the water heater. The process is relatively easy: turn off the water and power to the unit (set the burner on a gas unit to “pilot”). Connect a garden hose to the spigot at the base of the tank. With the other end of the hose pointed at your floor drain, carefully lift the tank’s pressure-relief valve and turn on the spigot; water should begin to flow. You don’t have to drain the tank completely; the Department of Energy recommends draining about a quart every three months.

Tip #5: Insulate exposed hot-water pipes. Wrapping insulation around hot-water pipes reduces standby losses, allowing water to arrive at the tap 2 to 4 degrees warmer. Since you don’t have to wait as long for it to heat, you’ll save energy, water and money.

Enjoy the upcoming winter in a new Ann Arbor home! Let Martin Bouma – your Ann Arbor expert – help you find the perfect piece of Ann Arbor real estate. Whether you’re buying or selling a home, the Bouma Group can answer any questions you have about real estate in Ann Arbor. Thinking of settling down in Washtenaw County, Saline, or a specific Ann Arbor neighborhood? Call the Bouma Group today. And don’t forget to check out our Condo Hotline – we know the Ann Arbor condominium market better than anyone!

What is the monthly condominium fee, and what does it cover? Condominium fees can range widely. They generally include a variety of things and purchasers need to know exactly what they are. The fees are derived from such things as the number, age and condition of units, annual expenses to maintain common areas, and management (is it professionally, or self-maintained?).
What are the condominium rules and regulations? Are pets allowed? Can you perform renovations to the unit? Can you rent the unit, rather than living in it yourself? Completely familiarize yourself with these rules and regulations before buying a unit, in order to avoid later surprises. If you have an attorney involved, be sure to have them review all documents to ensure that they comply with state condominium laws (as well as FHA and Fannie Mae regulations, if they apply).

Is the condominium association self-managed, or is there a professional management company? While a professional management company may present an additional expense, it can provide substantial added value in the form of well-run governance and professional management of common areas.

Are there any contemplated or pending special assessments? A special assessment is a one-time fee, payable by every unit owner, which is used for capital improvements. A good way to determine the existence of a special assessment is to review the condominium association meeting minutes from the past two years; this can help you ascertain what’s happening now, as well as the possibility of upcoming special assessments.

Along these same lines, how much money is in the capital reserve account, and how much is funded annually? The capital reserve account serves as a kind of “insurance policy” for the capital repairs which are required by every building. If the capital reserve account is poorly funded, the chances of a special assessment are increased.

Is the condominium association involved in any pending legal actions? If so, this can signify a poorly run association. Legal fees come out of the association’s budget, and can lead to a special assessment. In most states, you can search the court database to see if they’ve been involved in any recent lawsuits.

How many units are owner-occupied? A large number of renters can create a variety of headaches, including re-sale and financing issues. Fannie Mae and FHA both have new condominium regulations which pertain to owner-occupancy rates.

What is condominium fee delinquency rate? Again, Fannie Mae and FHA regulations stipulate delinquency rates of 15% or less. If the delinquency rate is high, it can signify overall financial problems with the condominium association itself.

Martin Bouma is your Ann Arbor neighborhood expert, and he knows the Ann Arbor condominium market. We offer a Condo Hotline, where you can learn about all of the condominiums available in the area. We will find Ann Arbor real estate that’s exactly right for YOU. Whether you’re buying or selling a home, the Bouma Group can answer all of your questions about real estate in Ann Arbor, whether you’re interested in Washtenaw County, Saline, or a specific Ann Arbor neighborhood.