Question from buyer -

Hi Michelle!

I do have a question. I’ve been looming at the 2330 Argentina SE foreclosure.
It says the taxes are around $4700, what is this based on? Will they change if the house is purchased at a much lower rate? Why are houses near that in the same price range have taxes in the 3400 range?

Let me know if you could. Thank you!

Answer -

1st off the house is now pending, they have accepted an offer. Only on the market 5 days, GOOD EGR bank owns do not last long!

However I will answer your question, the short answer is because it is in EGR – Longer explanation:

EGR has the highest millage rates in Kent county. Millage rate X SEV divided by $1,000 will give you a good estimate of your annual property taxes for a year.

So to find the SEV on a listing on GRAR, look at the city/township property information on their website, we will use EGR’s since it appears you are looking in that area-

http://www.eastgr.org/ – link to right hand side to property info

(we will use my listing at 701 Gladstone as an example) – click on link and put in address.

Look for SEV (State Equalized Value) Gladstone is 73,100 (in the old days you were to multiply this by 2 to get your homes “retail;” value, but this is not a sure thing anymore with the massive and rapid changes in the market)

Look on this same page to see if the home is 100% homestead or 0% homestead. Gladstone is 100% – explanation on my blog here – http://activerain.com/blogsview/1533544/property-taxes-in-michigan-homestead-vs-non-homestead (the home on Argentina was 0% homestead – so higher millage rate, but if an owner occupant buys it – it will convert back to homestead if proper paper work is filed at closing)

Look up millage rates here: https://treas-secure.state.mi.us/ptestimator/ptestimator.asp

Enter the proper info and your annual taxes will calculate, and you can see current then what is will become, assuming you are a buying a home to live in, if you are buying as an investment home and not using as your primary residence, either the non-homestead taxes will not change or will convert May 1st from homestead to non-homestead.

I hope this helps.

If you have been following me for a while, you will know I am a big fan of renovation loans.I love that 1st time home buyers can buy low and roll in needed repairs  to a loan to make a home sustainable in return improving/stabilizing the value of a neighborhood.  Makes me very happy!Till now these loans, have been a lot of work, many hoops to jump through, delayed closings……… just very hard to assure closing dates, which is needed when buying a bank owned.  And so much up front work, that the home buyer, that can not take off work to get everything donee that is needed for the loan; many would just say for get it!2011 is a new year and lenders are very excited about the FHA 203k streamline!Much easier to do these loans now, no delayed closings.Many bank owned homes need repairs, many 1st time home buyers are wanting to use a FHA loan.  The 2 do not go together unless using a FHA 203k loan.The city of Grand Rapids has a Down Payment assistance program up to $5,000.00 – now if I can only get them all to play together………we could really move some bank owned homes!So if you are a home buyer thinking of buying a home that needs some work, you owe it to yourself to check out this program this year.  If going in for your pre-approval ask your lender if they offer this program and get an explanation.  It is good to know your lending options when shopping for a home, it will make your shopping experience more pleasurable and your agent will thank you, as he or she will know what to look for.If you are in the Kent County area and needs some referrals for lenders with this program feel free to contact me, I will send you a list of some good lenders in our area, who can assist you.

One of my top ten pet peeves, is when I call a new doctor for an appointment and the 1st thing out of their mouth is what kind insurance do have?They do not pay attention to my name, ask me what I want to see the doctor for, how serious my condition is – just want to know how I am going to pay before I receive any services.I wonder if this would work in retail; Maybe Macy’s should ask to see my charge card or cash before I can shop there.Well I relate this to Realtors saying when they get a call from a new prospect, if they are not pre-approved for a loan I am not waisting my time.  Man, that statement really gets under my skin!I agree the 1st step to buying a home is a pre-approval………and I too will not shop for homes with a client till a pre-approval has be obtained……..however is this the 1st sentence our of your mouth when getting a call from a prospect?And further more is the unapproved buyer REALLY a waste of time?Last spring when the Home buyers credit was coming to an end, The Gordon Group sold  20 homes in a very small amount of time.  These were buyers we had worked with and prepared for the home buying process.  Many started with us as a credit challenge.  We worked with them, became their biggest fan and cheer leader to help them achieve the American dream.  And so they did; achieved the American dream.Some of these clients took over a year to get ready to buy a home.In the mean time, they referred us to friends of theirs that were READY to buy a home as they liked working with us.When I get a call from an owner occupant home buyer, the pre-approval question comes later in the conversation.  I learn their name, I ask what their goals are, and tell them a little about us.  After we connect and it looks like we may be a good match for each other I will ask what steps they have taken thus far to home buying process……..if they say none, then I will say your first step is a pre-approval from a lender.However I like to ask a few questions myself of their situation, believe it or not, in my area, they are pretty honest.  They will tell me if their credit rating is a horrible.  But this is good info to know as I know where to send them to get them started.Realtors have more power and knowledge then any other individual in the Real Estate related business.  Home inspectors know how to inspect homes, Lenders know how to write a loan………..etc……….but most good Relators will know who is the best lending company in your area, who does a wonderful job on inspections, who can help with a credit repair.I will show a few homes (that are vacant – not to put a home owner out) to show what your pre-approval means……IE: Many prospects who call and have had the pre-approval of an FHA loan, do not understand this FHA will not buy any home, so it is good to learn what your pre-approval means – as lending is confusing, if I can help you ask the right questions of the lender before going, I think it makes for a much smoother pre-approval.I am NOT an order taker, I/We are professional Realtors who care – yes I want to know your name and your hopes and dreams of owning a home and I want to help you get there.

Michelle Gordon is a Realtor with Keller Williams Realty – Grand Rapids Michigan – voted the best Real Estate company by readers poll 2009 – 2010 in the Grand Rapids Magizine.   Focus on 1st time home buyers, Relocation and listings in the Kent County area.   You may find Michelle on facebook, twitter or linked in and she invites you to join her.

Lets talk a bit about the down payment and/or cost of doing a loan. Where is that money coming from?I hope you are reading this because buying a home is just a glimmer in your eye and you want to get your ducks in a row before buying a home.Usually I tell people your 1st step is getting pre-approved by a lender – but really your first step is saving money for the Down Payment and closing cost, and seasoning that money.What is seasoned money you ask?  It is money that has been in your account for more then 2 months.  But you say your parents are loaning you the down payment for the home, so won’t this work?  Well a FHA loan will allow your parents to “gift” you the money, but…………they need to sign a statement this is really a gift that you are not to pay back ( or it will be considered a loan and added to your debt ratio).  And some lenders will want to know where that money came from that your parents gave you.  So your parents may have to show where they got it from.This is what we call a paper trail.  All monies have to be documented – money can not just fly out of the sky!  I still to this day have people that save their money in their mattress at home, and want to deposit it when they are ready to buy, not going to work in today’s market.The lender is going to want to see 2 months of the most current bank statement, ( and they may ask again before closing) There better not be any big deposits you can not give a good paper trail to.  So if you normally deposit $1,000 every 2 weeks and all of a sudden there is a $5,000 deposit into your account, they are going to want to know who, what and where.So empty the mattress and open an account at your local bank and season that money!Then go get a pre-approval from a lender………….

Michelle Gordon is a Realtor with Keller Williams Realty – Grand Rapids Michigan – voted the best Real Estate company by readers poll 2009 – 2010 in the Grand Rapids Magizine.   Focus on 1st time home buyers, Relocation and listings in the Kent County area.   You may find Michelle on facebook, twitter or linked in and she invites you to join her.

I believe the future of preparing a home for sale is going to change.  As our market changes, needs and wants from buyers are changing as well.We all have read many articles about staging the home, adding square footage, paint the home to fresh current colors.Where all is this is still very good advice, and many are doing this………how can you stand apart or be better then all of them?What I am finding is 1st time home buyers are more aware and educated then ever.  I have been selling for 10 years now, and the questions that are asked of me now about a home are so much more intelligent then they were 10 years ago.  I credit this to the source of info you can get on the web.Specifically in Grand Rapids, Michigan……..they want to know what “green” features if any the home has.  Is it safe, healthy and energy efficient?How old are the windows is the #1 question I get.  Questions to follow are:

• How old is furnace and is it energy star rated
• How old is the roof and was it properly insulated
• Is the electrical updated properly – up to code and inspected

I am changing things up a bit this year – and when interviewing my sellers for a listing – I will be sure to learn more about what Energy Star items they have and include them in my listing.At this time our MLS does not offer fields in the data base to include this, we are hoping it will in the future.  As these features are very important…….and from talking to an appraiser yesterday, he claims he would give the home more value if he knew about these items.I personally think the meaning of “value” has changed for the 1st time home buyer.  So if your house looks awesome, but needs a new roof and new furnace – it may not sell as quickly as the home that needs cosmetics but the home is 5 Star energy rated or has a high HERS Score.If you would like to get your home inspected for things you can do to make your home more comfortable and efficient here is one source –  Ask the General.If you want to learn more about HERS scores  click here.I am not getting anything – payment or gift for linking these sites, just sharing some info I found useful to me.  I hope you find it useful as well.

Michelle Gordon is a Realtor with Keller Williams Realty – Grand Rapids Michigan – voted the best Real Estate company by readers poll 2009 – 2010 in the Grand Rapids Magizine.   Focus on 1st time home buyers, Relocation and listings in the Kent County area.   You may find Michelle on facebook, twitter or linked in and she invites you to join her.

I feel very compelled to write this article having moved here about 7 years ago.   I have been here long enough to know the ends and outs of the area, however not here too long to forget where I came from and recognized the benefits of living here.

East Grand Rapids is a place where pedestrians always have the right away.

East Grand Rapids is a place where people will say hello to you when you walk by, even if they do not know who you are.

East Grand Rapids is a place where it is okay to make eye contact and smile.

East Grand Rapids is a place where shivery is not dead.

East Grand Rapids is a place where you do get to know your neighbors.

East Grand Rapids is a place where drivers let you cut in front of them.

East Grand Rapids is a place where I can walk my dog after dark.

East Grand Rapids is a place where my neighbor™s cat comes to visit my cats¦¦¦. (They have play dates)

East Grand Rapids is a place where people help others in need.

East Grand Rapids is a place where they still have block parties and the firemen come to visit.

East Grand Rapids is a place where the High School plays get sold out.

East Grand Rapids is a place where you can hear the band and local fans cheering at the football games from your house.

East Grand Rapids is a place where our kids can ride their bike to any one of their friends house who also lives in
East Grand Rapids.

East Grand Rapids is a place where there is history and pride for the community.

East Grand Rapids is a place where my kids can not do a thing with out me knowing about it!

East Grand Rapids is a place where we all buy candy from the kids who are raising money for school!

I would love to hear your comments on why you LOVE EGR!!!!

In brief here are the details:

You must put a minimum of $1,000.00 down (unless it is a HUD home then $500.00 is expectable if the home is priced lower then $50,000) and have a pre-approval letter from a lender (some banks want you to be pre-approved by them, but you do not have to use them, however they will try to cut you a deal to use their services) they will not even look at your offer with out this.

Most of them still follow the guide lines that you have a  10 days (includes week ends) inspection period.   So you would come to an agreement on price and then have the inspection period, to decide based on inspections if you still want to purchase the home.   However not all follow this guideline, so make sure the inspections do not have to be done prior. The home is sold œas is no repairs will be made by seller.   If you decide not to buy the home based on inspections, you will get your earnest money (also know as good faith money) back.  

Your offer can NOT be based on the sale of your home.   No contingencies are accepted.

It can take 1 day or a month to hear back from the bank on your offer.   If you are buying a bank owned home (REO Real Estate Owned) and need to close right away, as you are selling your home or your lease is up, I advise you to be pre-pared to have somewhere else to live in the meantime, as this may not close when you want it to.   However the savings may be worth the wait.

How long will it take to close, is one of the questions I get asked the most.   So far my experience is they have closed on the date on the contract, however not much before that date.   I envision a guy working in a small office with piles and piles of files and is getting to them as fast as he can.   Not just one person at the bank makes the finial decision.   The bank has to prove to their investors that this is the best possible price they can get.

There is general feeling out there by many buyers, that this bank should just want to dump this home, I will go in a low ball the price, and they should take it.   This is not the case.   In most situations they do not take much off the asking price; however they will continue to drop the price till it gets sold.

Title work is usually done by their title company (they make it very hard to work with a local one) However, depending on who they choose, it sometimes makes sense to pay the higher amount for  your own  title policy.   I have run into many problems with œtheir title company.   So far I have caught the mistakes made by their title company, but this makes me nervous, as I am NOT a title person.   Some of things I have run into:

They do not warrantee their work

They do not understand
Michigan laws; due to the title company is from another state.

They do not check for liens

They do not pay off the liens (seller is responsible for all liens on property, unless other wise negotiated)

I am very experienced with these types of sales and will guide you the whole way through, but just wanted you to know a head of time what is involved.   Each bank is a little different¦¦¦¦¦¦so we take it as it comes¦¦¦¦¦or NOT!

Welcome to Michelle Gordon’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Grand Rapids, Michigan.To learn more about me and The Gordon Group, please visit www.thegordonsgroupgr.com.