TEN STEPS TO BUYING A HOME

You're ready to take the leap and buy a home. If this is your first time, you may want to know what to do to make the process go more smoothly. Here are ten steps you'll be going through to buy your next home.

Check Your Credit Reports and Scores - You get one free look at your credit reports annually. Go to AnnualCreditReport.com and see how easy it is to get credit reports from the three major credit bureaus, Experian, Transunion, and Equifax. You'll need all three because they each report differently, so you may find an error at one bureau but not the other two. You don't know which credit bureau your lender will use so you want all three bureau reports to be accurate. If you see a mistake, contact the bureau and alert them to the error. Send a copy of your proof, such as the paid balance.

Get prequalified - Your lender will "run your credit" to look at your credit reports and evaluate you for risk. Your income, credit scores, payment history, revolving debts, obligations such as child support as well as the type of loan you choose are all factors in determining your interest rate and other terms of the loan. The lender will also consider how much home you can buy based on your down payment; smaller down payments mean higher monthly payments. Last, the interest rate and terms (30-year, fixed or adjustable rate) will determine what you can afford in monthly payments.

Make your wish list - Decide where you want to live and how many bedrooms and baths you'll need. Consider lifestyle -- condominiums offer shared amenities, with little responsibility. Single-family homes offer more space and privacy, but much more exterior and yard maintenance. Think about how far you're willing to commute to work. Make a list with five must-haves and five deal-breakers that you absolutely don't want. Be willing to compromise if you find a home with most of the things you want.

Hire a real estate professional - Your real estate professional should be expert in the area where you want to live and familiar with the type of home you want to buy. Your agent has house-by-house experience in your neighborhood and can offer the best advice on homes in your range. Ask for referrals from people you know who have recently bought or sold a home or choose an agent in the neighborhood who is less than five minutes from the neighborhood you want.

Select your home - No home is perfect, so expect to find a few things that are disappointing. Try to see past minor flaws such as bad paint colors or old carpet. Think long-term. Is this the house you would want if it were painted and recarpeted? Which home best suits the activities and needs of your household now and in the years ahead? Don't buy more than you need or can comfortably afford.

Make an offer - You're either in a buyer's market or a seller's market, so your offer depends on the current market conditions. If a home has been on the market a long time, you can ask the seller for a price reduction, repair concessions, and help with closing costs, but if it's new on the market, the seller is unlikely to accept an offer lower than 95 to 97 percent of the asking price. Ask your real estate professional for advice and a CMA so you can determine a fair offer price. Be sure to make your offer contingent on a satisfactory inspection.

Get an inspection - A home inspection is a professional third-party opinion of the home's condition. The inspector works for you, so it is his job to point out problems big and small. He will check age of all systems, note large and small repairs that are needed, code violations, and so on. Some inspections are not included, so you will have to hire a separate experts to look for pests, or inspect the septic tank. You need to know what problems and expenses you'll be facing as the next owner.

Renegotiate Terms - If the inspection reveals a problem that is more severe or is not noted on the seller's disclosure of the property, you should renegotiate terms. Either ask the seller to fix the problem or ask for a price reduction if you prefer to fix it yourself.

Get an appraisal - The bank appraisal determines market value. If the home doesn't appraise for the purchase price, the bank will refuse to make the loan unless you increase the size of your down payment or renegotiate a lower price with the seller. If the home meets the appraisal comparables, the lender will move toward closing. Pay close attention to the comparables that the appraisal uses -- they may skew the value in a different direction than you might be expecting.

Go to closing - Once final negotiations are complete, and you've done a final walk-through of the property to make sure all repairs have been made, the parties to the transaction meet at the escrow office. This office could be a title company, real estate attorney, or whatever is customary in your area. All paperwork is signed by both parties. The lender pays the seller, minus any liens against the home such as the seller's mortgage. Once all the disbursements have been made, you get the keys to your new home, according to your agreement.

Congratulations! You're ready to move into your new home.

A Comprehensive Market Analysis Is Not An Appraisal

As part of the home buying process, your real estate agent

may create a comprehensive market analysis or CMA. Later, when you apply for a mortgage, a bank appraisal is conducted by a licensed appraiser. Are CMAs and appraisals the same thing?

While both CMAs and appraisals help determine a home's market value, their purposes are not the same. The CMA is a sales tool to help you find an offer price for the home you want to buy. The homes in the CMA include the home you want to buy plus similar nearby homes. This helps you see how the home you want compares to other homes so you have an idea what to offer.

A real estate professional may prepare a CMA for their sellers to help them choose a listing price. The CMA includes recently sold homes and homes for sale in the seller's neighborhood that are most similar to the seller's home in appearance, features, and general price range.

Although the CMA is used to help determine current market value, the seller's home is typically not even featured in the CMA. The CMA is merely a guide to help the seller learn what's happening in their local market, so they can better understand where their home fits in term of price ranges, based on location, features, size, condition and other factors.

The CMA offers the same advantages to you as a buyer. They help you better understand the local market. You can expand the search and get different results in a CMA simply by changing the zip code or the price range or the number of bedrooms and baths.

Appraisals are all about risk retention for banks and their customers. If the buyer is receiving financing through a bank, the bank will order an appraisal.

Unlike the CMA, a bank appraisal is a professional determination of a home's value. It's performed by a licensed appraiser, using guidelines established by the Federal Housing Finance Agency, which regulates federal housing loan guarantors such as FHA, VA and housing loan purchasers Fannie Mae and Freddie Mac.

An appraisal is a comprehensive look at a home's location, condition, and eligibility for federal guarantees. For example, the home you want may have porch steps but no handrail. If you want to buy the home with an FHA or VA-insured loan, your seller will have to repair or install a handrail. The FHA or VA appraiser will look at the home a second time to make sure the steps were made safe.

Appraisers use the same data in their market research to find comparable homes as Realtors do. They are also members of the MLS, but they have additional guidelines from the bank to follow to minimize risk to the bank and to the borrower. If home prices are falling, the appraiser takes the number of days a home has been on the market far more seriously.

When the appraisal is finished, the bank makes the decision to fund the loan, or it may require the seller to fix certain items and show proof that the repairs have been made before letting the loan proceed. If the loan doesn't meet federal lending guidelines, the bank will decline the loan.

Despite stricter lending and appraisal standards, most buyers' loan applications go through to closing. One reason the system works so well is that real estate agents are preparing CMAs that are better tuned to lending standards as well as market conditions. As a buyer, it's in your best interest to understand how lenders approach risk and to learn what the market is doing.

Simply put, you need both a CMA and an appraisal to determine market value. A CMA helps you decide what you should offer the seller. An appraisal determines what the lender is willing to lend to help you purchase a home.

Don't Assume You Can't Get A Mortgage Loan

According to the latest J.D. Power 2014 U.S. Primary Mortgage Origination Satisfaction Study, first-time home buyers report challenges with understanding the mortgage process and the options that are available to them. It also suggests that lenders may be doing a poor job of educating and helping borrowers navigate the loan process.

Among survey respondents purchasing a home, 58 percent were first-time home buyers, yet only 29 percent of homebuyers in the last three months were first-timers, according to the National Association of REALTORS^®. The percentage of first-time homebuyers has been less that 30 percent for 17 of the past 18 months. The reason the number is significant is that it's well below the long-term average of 40 percent.

Nearly half (48 percent) of first-timers headed to a brick and mortar lender to meet with a loan representative and receive personalized advice, yet even then, 43 percent reported that they did not completely understand the process. And only 41 percent of first-timers said their loan officer completely explained the types of loans, terms, special programs, fees and options to reduce their down payment.

First-timers want more transparency in the process, but transparency works both ways. Lack of experience and uncertainty about the process may keep first-timers from asking the right questions that could result in the right loan. Buyers may also be reluctant to share key financial information that could help the lender provide better guidance.

For all these reasons, you should assume that your chances of getting a loan are better than you think, but only if you're willing to do two things -- ask questions and share information.

Here are some suggestions to help you:

1. Look for a lender who is willing to take time with you. Be upfront that you're a first-time buyer and that you want to understand the process better. If you don't know a good lender, ask for referrals from people you know who have recently purchased a home.

2. Be willing to provide basic information your lender needs -- income, debts and obligations such as child support or student loan.

3. Share your plans and dreams. If you want to flip the home in two years, say so. If you want to live in it for 10 years, say so. It will make a difference in the type of loan your lender recommends.

4. Come clean about any problems you think you may have getting a loan. If you weren't so great at paying bills while you were in school, you may have hurt your credit rating. Tell the lender that you may have possible derrogatories and what you've done to repair the damage.

5. Be flexible about your goals and don't try to get a loan that's beyond your means. You'll build equity and wealth much more quickly if you buy a home you can comfortably afford.

6 GREAT REASONS TO BUY A HOME RIGHT NOW

To take advantage of near-record low mortgage interest rates and home prices undervalued by as much as three percent nationwide, now is a great time to buy a home.

You've already missed the bottom of the market, but that doesn't mean there aren't great buys to be had out there. Your community may not have appreciated as quickly as some of the big metro areas have recently. Your boom may yet come.

To begin with, the economy is growing. From information gathered on or before August 22, 2014, the Federal Reserve's "Beige Book" report found economic activity is up in all eight national districts, including consumer spending, freight loads for deliveries of goods, and more.

But there are even better reasons to buy a home right now. Here are just a few:

More jobs are available

The Labor Department announced that the jobless rate is now below six percent. Consider how far the job market has come since January 2010 when unemployment was 9.7 percent.

Houses hedge against inflation

The Consumer Price for All Urban Consumers is up 1.7% from August 2013 to August 2014, excluding volatile food and gas prices. The food index has risen 2.7 percent over the span, while the energy index has increased 0.4 percent. This is the first month that the index hasn't risen since 2010.

Why is that good for homeowners? Even in a tepid inflationary environment, when prices rise, a major asset such as a home, purchased at a fixed cost, becomes more valuable. Typically, in an inflationary environment, housing prices rise.

Housing price gains are slowing

The median existing-home price in August was $219,800, which is 4.8 percent higher than home prices in August 2013. This marks the 30th consecutive month of year-over-year price gains. In 2013, home prices rose in the double digits.

Mortgage interest rates are still low

According to Freddie Mac's archives, the lowest that mortgage interest rates have been in modern history (since 1971) was in November and December 2012 at 3.35 percent with 0.7 points for a benchmark 30-year, fixed-rate loan, and that was back in 2012 before the housing recovery began in earnest. The most recent Freddie Mac survey found national averages at 4.16 percent with .05 percent points in September 2014.

                                

Pent-up demand ready to release

Household formation has been muted since the Great Recession, preventing as many as 2.5 million people from forming households who otherwise would have. Economists with Harvard's Center for Joint Housing Studies predict that annual U.S. housing starts should average 1.4 to 1.5 million over the coming decade. Considering that the largest generation ever –81 million Echo Boomers -- are well into renting and homebuying age, the numbers should be closer to the 2.3% annual growth of the 1970's, when 78 million Baby Boomers reached adulthood.

Buy VS rent ratios favor homeownership

Trulia, a real estate marketplace and research group announced that nationally, rents rose 6.5% year-over-year in September 2014. Apartment rents were up 6.9%, while single-family home rents gained 5.2%. At the same time, housing prices have leveled off.

The takeaway

A housing market never remains even. There are always surges and dips. Buyers could wait for better market conditions, but the present alignment of low mortgage interest rates, slowing home prices, rising rents and pent-up demand add up to great reasons to buy a home right now.

Are You Really Ready To Sell Your Home?

When you put your home on the market, you may think you're really ready to sell, but if you're throwing roadblocks in front of buyers, you're really not ready at all.

When you're not really ready to sell, you tend to be unrealistic and say things to your friends, family and your real estate agent like this:

"I can sell it myself."

"My home is worth more than that."

"The buyer can fix things themselves."

"Let's price it higher, and see what happens."

Let's address these one at a time. About 15% of homes sold by their owners are successful. Sure you can sell it yourself, but your home is competing with listed properties that are effectively marketed and represented by real estate professionals.   Those that list with a real estate professional also get a 14% higher sales price on average then selling it by themselves.

You may believe your home should be money in the bank. It should be worth more than you paid for it, it should never go down in value, and it should provide you with enough equity so you can trade up to another home, put your kids through college, retire, or meet some other financial goal.

There are times when you can really make out selling your home, and times when you won't meet your goals. If you stay in your home long enough to build equity (at least 4 years or more), don't take out equity loans or lines of credit, and you keep your home in good repair, you're likely to make some money when you sell.

Realistically, your home is only worth what a qualified buyer will pay for it today, not what it was worth yesterday or what it will be worth tomorrow.

Last, most buyers don't want to fix anything, so if your home needs work, you're cutting down on the number of buyers who will make offers on your home. That leaves you with only the buyers who want a bargain or a fixer-upper, which means you won't get top dollar for your home.

If you're serious about selling your home, you'll hire a professional to advise you and help you. A real estate professional will show you the current numbers and comparables and explain current market conditions and how they will impact your pricing and marketing strategies.

You're ready to sell if you're prepared to listen to your real estate professional and follow his or her advice. You're ready to sell if you're willing to do the hard work to make your home appeal strongly to buyers.

You're ready to sell if your price your home to current market conditions, not what you believe you deserve.

Why Using A Realtor Is Important Whether You Are Buying Or Selling

Approximately 85 percent of home sellers use a real estate

professional to sell their homes. But did you know that buyers who are represented are also more likely to have a successful transaction?

Getting a purchase closed in today's market is complex. Buyers face many more hurdles including stricter financing and a confusing marketplace of listed homes, for-sale-by-owner homes, foreclosures and short sales.

Your area may be in a buyer's market with lots of inventory available and falling prices, or you may be in a seller's market with homes selling out from under you before you can write an offer. Either way, you'll be better off navigating the market with an experienced guide.

To take advantage of today's near-record low interest rates, attractive inventory levels, and price rollbacks from decade highs, you need a sales professional to help you close the deal.

A good real estate professional understands the current market. He or she has house-by-house neighborhood experience and help you obtain the right house at the best price and terms. Professionals share their knowledge of homes coming on to the market, through the multiple listings service and through networking.

You can search for homes online, but do you know about the homes coming onto the market? Your real estate professional will tell others about you to make sure you learn about upcoming homes for sale before they hit the online sites. Many homes are bought and sold this way, without a sign ever going into the yard.

Real estate professionals work primarily on commission. If the deal of the century is about to come on the market, who do you think your agent will tell? The buyer who thinks he'll get a better deal by working every agent, or the buyer who is loyal?

Here are some tips on how to work with your own agent:

If you want great service, show appreciation and commitment. 

• Get prequalified with a lender by sharing your financial records so you know exactly how much home you can buy.

• Work with only one agent. If it's customary in your area, sign a buyer's representation agreement.

• Stay in contact. If you want to look at open houses or builder homes, invite your agent to come along. If she's not available, show your loyalty by telling the salespeople you meet that you are already represented.

• Don't hide pertinent information from your agent, or she will be in the dark about key issues that could impact your transaction negatively.

• Once you find the house you want, the work really begins. You'll need help navigating negotiations, loan approval, seller's disclosures, inspections, repairs, and much more. Your agent will share your risk, and will make sure you go into any home purchase with your eyes wide open.

Take advantage of the greatest homebuying resource available - a real estate professional.

New FHA HAWK Program To Help New Homebuyers October 1st

The FHA is piloting its Homeowners Armed With Knowledge (HAWK) program beginning Oct. 1,

in which first-time borrowers who participate in housing counseling approved by the Department of Housing and Urban Development before they make an offer on a home, as well as before and after settlement, can get a reduction in their mortgage insurance premiums.

First-time home buyers who participate in the four-year pilot program will benefit at closing from a 50 basis points reduction in the upfront mortgage insurance premium and a 10 basis points reduction in the annual premium.  If buyers complete post-closing housing counseling and do not have delinquencies greater than 90 days in the first 18 months after closing, they will receive an additional 15 basis points reduction on the annual premium starting the loan’s 25th month which lasts the life of their loan. .

The FHA loan is popular among today's U.S. home buyers.

Along with ultra-low FHA mortgage rates which rival those from Fannie Mae and Freddie Mac, FHA loans are attractive because they offer a minimum down payment requirement of just 3.5 percent -- the lowest of all widely-available loan programs.

And now, a new Federal Housing Administration program -- the Homeowners Armed with Knowledge program -- is expected to add to the program's allure.

ABOUT THE FHA AND HOMEOWNERSHIP

The Federal Housing Administration (FHA) is the world's largest mortgage insurer. It was first formed 80 years ago as an act of Congress; part of the National Housing Act of 1934.

In 1934, it was difficult for home buyers to borrow money from a bank. Because the economy was still reeling from the Great Depression, banks typically enforced home downpayments of fifty percent or more on loans; and required complete loan repayment in 5 years or fewer.

Terms like these precluded homeownership for many would be buyers and, not surprisingly, more than 60% of Americans were renters.

Then came the FHA and its flagship mortgage insurance program, which has helped make homeownership possible for more than 34 million Americans since its inception.

The premise of the FHA's mortgage insurance program was simple. Much like an auto insurer insured policyholders against loss from damage or accident, the FHA agreed to insure lenders against loss from lack of payment (which is known as "default" in mortgage terminology).

To get its insurance, the FHA published standard eligibility requirements which all loans were required to meet. Today, those requirements include a minimum credit score reading of 580; proof of citizenship or legal residency; and a 3.5% downpayment.

The FHA program was revolutionary for the U.S. housing market. Neighborhoods stabilized as loan defaults dropped and homeownership rates crossed 60 percent by the early 1960s.

Today, FHA loans account for approximately 1 out of every 5 new loans.

2014 FHA MORTGAGE INSURANCE PREMIUMS

When an FHA loan goes bad, the agency repays lenders from its Mutual Mortgage Insurance (MMI) fund. The Mutual Mortgage Insurance fund is the account into which FHA mortgage insurance premiums (MIP) are paid each month.

By law, the account is required to maintain a balance equal to 2% of the FHA's outstanding insured loans and for the agency's first 60-plus years, it met this requirement ably.

A rash of defaults between 2009-2012, though, dropped the FHA's insurance reserves into negative territory.

To recoup lost money -- and to meets its federally-mandated 2% reserve requirement -- the FHA was forced to raise its mortgage insurance premiums five times in 5 years.

Today, the FHA charges mortgage insurance in two parts.

The first MIP is charged at closing and it's called the FHA Upfront Mortgage Insurance Premium, which some lenders abbreviate as UFMIP. The second MIP is charged on-going as part of your monthly mortgage payment.

This payment is called the Annual Mortgage Insurance Premium.

FHA MIP varies based on your downpayment and the length of your loan. All FHA purchase loans are subject to an upfront MIP payment of 1.75%, or $1,750 for every $100,000 borrowed.

For annual MIP, the 2014 FHA MIP schedule is as follows:

• 30-year loans with a downpayment of 5% or more: 1.30% annually
• 30-year loans with a downpayment of less than 5%: 1.35% annually
• 15-year loans with a downpayment of 10% or more: 0.45% annually
• 15-year loans with a downpayment of less than 10%: 0.70% annually

Annual MIP is spilt into 12 parts. The percentage is based on the year's starting balance such that a homeowner with a $100,000 30-year FHA mortgage and making the minimum 3.5% downpayment will pay $108.33 monthly, or $1,300 per year.

Photos: The most expensive home in America?

In the Tampa Bay area, a 60,000-square-foot mansion in Hillsboro

Beach has hit the market after seven years of construction.

"Le Palais Royal" was modeled after palaces in Europe, and it certainly has a royal price tag. With an asking price of $139-million, it may be the most expensive home on the market in the entire country.

The annual property tax bill alone -- estimated at $143,000 -- is more than the cost of many homes.

What does a cool $139-million buy these days? Here are some of the highlights, according to the official Coldwell Banker MLS listing:

• 11 bedrooms
• 17 bathrooms
• The first-ever private IMAX theater
• A 30-car underground garage
• A grand staircase valued at $2-million
• Six waterfalls
• 4,500-square-foot infinity pool
• Air-conditioned dog kennel
• Putting green

The property straddles four acres on the southern end of the small island, meaning the home has both beachfront access and, as the listing suggests, space on the Intracoastal "to dock a mega yacht."

The home has been gathering international attention since hitting the market.

WHAT YOU NEED TO DO TO YOUR HOUSE BEFORE FALL

As summer fades out and the first hints of fall arrive, thoughts start to turn to boots and sweaters and parkas and snowball fights. But before we start changing out our wardrobe and preparing for snowfall, there are a few things we should do to our home.

Air leaks throughout house

Air leaks are one of the primary sources for energy loss in a home, and energy loss means money loss. There are steps you can take to check for and eliminate them. "When checking your home windows and doors for air leaks, start with a detailed visual inspection from both the interior and exterior of your home," said Lifehacker. "On the outside you should look for areas where the old caulking has failed, revealing the gap between the window or door frame and your home's siding."

They also recommend "inspecting the threshold under each door, looking for daylight or other obvious signs of an opening that is too big and needs to be sealed shut, making sure that the weather stripping around the windows and doors is in good condition, and checking old single-paned windows for damaged glazing, which can make the home "vulnerable to expensive heat loss."

Once you've discovered the air leaks in your home, you can set about sealing them up. "More often than not, a fresh layer of exterior-grade caulking will adequately seal shut any gap or crack that is causing you problems. New weatherstripping or an adjustable threshold can help to seal shut the gaps around your home's doors."

Roof check

Summer storms caused problems in areas throughout the country, and in many cities, no roof was spared. If you have yet to have yours checked out, you may want to do so before winter comes and brings snow with it. A call to your insurance company should produce a free visit to come check its condition.

Filters

If it's been awhile, you'll want to do a check of your filters throughout the house to make sure they are clean so air can flow through them smoothly. "According to Energystar.gov, the filters on your home system likely need to be changed either once a month or once every three months, depending on the type you're using," said Allstate. "You should check the product information on the filters for the manufacturer's suggested frequency of change. Depending on where you live, the time of year, and how much you're using your AC or furnace, you may end up having to change your air filter more frequently. For instance, during a steamy summer when you're running your system constantly, you may end up having to change the filter more often than if the weather is nice and you're relying on open windows."

Smoke detectors

It's also time to change out the batteries in your smoke detectors. While you're at it, check and clean out your dryer vent at the same time, clearing any buildup of lint since this can cause a fire.

Fireplace

Now to the place where you actually want a fire in the winter. To keep it safe, you'll want to inspect this area as well. Woodburning fireplaces need to be cleaned because of the potential for buildup of soot and creosote. Gas fireplaces should also be checked for debris and to make sure the chimney structure is secure with no cracks or crumbling mortar joints.

Once you've checked off this list, your home should be in good shape to get you through another fall and winter.

More Good News On The Real Estate Front, If You Are Considering Selling Your Home

The median selling price of homes in Metro Detroit rose 18.2 percent to $152,200 year-over-year in July, according to

figures released Monday by Realcomp, the Farmington Hills-based Multiple Listing Service for Southeast Michigan.

It marked the 17th straight month of double-digit growth. While prices continued to rise, sales slowed, with 5,085 homes sold throughout Metro Detroit in July 2014, compared with 5,283 homes sold in the same month last year. Realcomp defines Metro Detroit as Wayne, Oakland, Macomb and Livingston counties.

While not broken down for Metro Detroit, on-market inventory across all of Realcomp's coverage area, which includes all of southeast Michigan and a small part of northern Ohio, was up 19.7 percent on an annual basis in July.

Average days on market for homes fell to 40 days last month, from 58 days in July 2013, and marked the quickest pace of sales so far in 2014.

Here’s a closer look at how each Metro Detroit county fared on an annual basis in July:

Wayne
The median selling price grew 29.8 percent to $99,000, while total units sold dropped 9.9 percent to 1,702 homes.

Oakland
The median selling price rose 9.9 percent to $207,675, while total units sold edged up 1.5 percent to 1,956 homes.

Macomb
The median selling price climbed 22.2 percent to $132,000, while the number of units sold slid 5.2 percent to 1,107 homes.

Livingston
The median selling price increased 6.1 percent to $196,350, while the total units rose 6.7 percent to 320 homes.

In the Grosse Pointe area, in which Realcomp includes all of the Pointes and Lake Township, total sales by units dropped 21.4 percent to 77 homes sold in July. The median selling price in the Pointes rose 16.5 percent year-over-year to $262,500.

For the Detroit area, which includes the city of Detroit, Hamtramck, Harper Woods and Highland Park, the median selling price grew 18.5 percent to a mere $16,601. Home sales by units plummeted 20.9 percent to 336 homes.

ARE SERVICE PLANS AND HOME WARRANTIES WORTH THE COST?

Extended warranties, or service plans, offer consumers longer terms of coverage on service, repair and replacement for their home's appliances than the standard out-of-the-box warranty from the manufacturer.

These warranties are highly profitable for retailers, as they deliver 50% profit, but they also run up the total cost of your washer, dryer, or or refrigerator by as much as $118, according to Consumer Reports.

Are service plans actually worth it? You can argue the benefits both ways.

In the fast-paced world of home electronics, future technology will far outclass today's products by the time the extended warranty expires. Digitaltrends.com states that household electronics have seen great improvements in product reliability, making the price of most extended warranties about the same as a repair bill. The same is true with most appliances today too.

Consumer Reports data concludes that products "usually don't break during the two-to-three-year period after the manufacturer's warranty expires and the service plan is in effect." And if they do break, the repairs, on average cost only $16 more than the service plan. Most defects will reveal themselves within the first year of use, while the manufacturer's warranty is still good.

If you're tempted to buy a service plan, follow this rule -- the cost of the warranty should be no more than 10% of the purchase price. That said, extended warranties should be purchased for some items, including those that are difficult to repair or high-priced items that would be painful to replace.

Or you could buy a home warranty for about $500. Explains Amy Hoak, correspondent for MarketWatch, "A home warranty is a service contract that commonly covers the repair or replacement of your home's appliances and systems, including your heating and air conditioning systems."

No matter which appliance breaks, you make one call and the service plan call center dispatches the appropriate repairperson. The problem is that service providers pay for these leads, which means they make less money, so be prepared to be upsold to a "cleaning" or more expensive repairs.

In addition to the annual fee, you'll also pay a $60-$75 service fee when a contractor is dispatched to your home.

Home Warranties are ideal for rental properties and as incentives for homebuyers, and they come in handy when multiple appliances break down, saving an average repair bill of $840 or a replacement at an average of $1,200, says Hoak.

Ultimately the choice and risk are yours to assume. Extended warranties or home warranties can be worth the cost in terms of peace of mind, but only if it's for a product you don't intend to change for a few years.

And if you decide to skip the warranty, be prepared to shoulder the cost for assessment (service calls), repair (time in labor plus parts) and shipping.

Consumerreports.org says you shouldn't have to pay extra to get manufacturers or retailers to stand behind their products, but sometimes, you have to. If you have older products and systems, a home warranty may be your best bet.

Are you ready for a brutal season of mosquitoes and ticks in? Tips to stay Safe

Have you found it unbearable to be outside in the evening as of late because of mosquitoes?

Insect experts say Michigan is in for a brutal season for blood-sucking ticks and mosquitoes, which raises the risk of certain illnesses. Other bugs, such as bees, wasps, mayflies and spiders have returned to Michigan as well.

This past winter’s extreme cold will have little effect on most bug populations in the state this summer, said Howard Russell, a Michigan State University entomologist known as “The Bug Man.”

The heavy snowfall, on the other hand, was beneficial to some creepy crawlers. It served as an insulating blanket for bugs, such as ticks, that live in the leaf litter and at the base of trees. “The snow provided a great barrier against the cold,” he said.

It also left behind lots of water in low-lying areas, which is ideal for mosquitoes to breed, Russell added.

Mosquitoes can carry West Nile as well as Encephalitis

Encephalitis is a potentially fatal inflammation of the brain and spinal cord. In Ohio, there are three prevalent mosquito-borne viruses that cause encephalitis. LaCrosse Encephalitis (LAC) virus is transmitted between small woodland animals and mosquitoes. St. Louis Encephalitis (SLE) and West Nile virus (WNV) virus are transmitted between several species of mosquitoes and wild birds. Humans are at risk of acquiring encephalitis if bitten by a female mosquito that is infected with either virus. LAC is usually an infection in young children between the ages of one and fourteen. SLE and the WNV are a more serious concern for the elderly.

Early symptoms of mosquito-borne disease may include nausea, fever, vomiting, and/or headache. These symptoms usually develop in approximately two weeks. More serious cases include drowsiness, stiff neck, stupor, disorientation, tremors, and convulsions (especially in infants). Diagnosis of encephalitis can only be made through laboratory testing. Consult your physician if any or all of these symptoms occur, especially during the peak months of virus transmission, which are June through October.

Fighting off bugs

Here are some tips from the Department of Community Health on how to avoid being bitten by mosquitoes and ticks:

■Use insect repellent when outdoors, especially from dusk to dawn. Look for products with DEET, Picaridin, or oil of lemon eucalyptus to keep mosquitoes and ticks away. Don’t forget to reapply as needed.

■Use nets or fans around outdoor eating areas to keep mosquitoes away.

■Make sure window and door screens are in good condition to keep mosquitoes outside.

■Cover or eliminate any containers of standing water where mosquitoes can lay eggs.

■Avoid tick-infested areas, especially in May, June and July. If you can’t, walk in the center of trails to avoid contact with overgrown grass, brush, and leaf litter.

■Treat clothes — especially pants and socks — as well as shoes with permethrin, an insecticide that kills ticks on contact or buy pre-treated clothes.

■After coming indoors, bathe or shower as soon as possible to wash off or find ticks.

■After being outdoors, wash and dry clothes at a high temperature to kill any ticks that may have gotten a ride indoors on clothing.

■To remove an attached tick, grasp it firmly and as closely to your skin as possible with a pair of tweezers. Pull the tick away from the skin with a steady motion. Do not be alarmed if the tick’s mouth parts remain in the skin. Cleanse the area with an antiseptic. Usually, ticks must be attached for at least a day before they can transmit the bacteria that causes Lyme disease.

Source: Michigan Department of Community Health
 

One thing to note is chemical sprays not only kill bugs but also you.  Many of the ingredients in insecticide sprays are known carcinogens.  If you can, use natural bug replant and plant citronella plants in your yard and keeps some in pots on your patio, deck or balcony. 

SELLING YOUR HOME: 5 FRONT YARD LANDSCAPING TIPS THAT WILL BRING THE BUYERS

Your front yard is the red carpet inviting buyers into the beauty that is your home. If it's rugged, messy and unkempt, buyers will take one look and then keep on driving to the next property on their list. Don't let that happen by making your front yard luscious and as amazing as the inside of your home.

What areas should you focus on in your front yard? Where do you start? To help you break down the revitalization of your front yard, here are the steps you should take:

1. Cut the grass.

Buyers don't want to trudge through high grass as though they were in the Amazon or on a safari in Africa.

This means the lawn mower needs to be out at least once a week if not every other week, keeping it trimmed and maintained.

It also needs to be green so it looks alive and lush. Water so the sun doesn't dry out the lawn and turn it yellow or brown.

A professional landscaper can help maintain a balance of trimming and growth so it looks just right for buyers.

2. Plant more shade trees.

One or two trees in the front yard are all right, but if you want to really add some shade, plant more. Shade trees will detract from the glare of the sun, and it can help decrease the temperature of the house if they're placed close to windows. It also will help keep the lawn green with moisture. You can plant trees that are shorter and will grow by the time the new owner buys the home, but be sure they're strong and can handle the climate.

3. Install outdoor lighting.

Outdoor lighting is a good way to both illuminate the house at night and accent parts of your yard. Depending on where you install the lights, your house will look very appealing at night to those buyers who might not have time to do their shopping during the day. Outdoor lighting also helps to illuminate a path like a sidewalk to get from the curb to your front door for easier navigation. It helps to accent the beauty of your landscaping which all together increases the beauty of your home.

4. Consider adding flowers for more color.

If your front yard has a lot of greenery, you should increase the yard appeal by adding more colors. Flowers are a great and simple way to do this, as well as shrubbery with different blooms. Perennials are the best for this because they last for more than a year, which means less maintenance for the seller and the new homeowner. They come in a wide variety of colors and types so the yard can be decorated with any number of them while still requiring less maintenance.

5. Keep everything clean!

In addition to keeping the lawn trimmed, everything else should be clean. Anywhere that can build up dirt or grime - siding, porch, front door, driveway - should be cleaned on a regular basis. Buyers don't want to see a lot of dirt and mess, and it will detract from them wanting to walk into the house. So take a broom, a power washer and a few hours on the weekend to keep everything sparkling clean. Don't have a power washer? A professional power washing service can cost as little as $300.

GETTING A HIGHER PRICE FOR YOUR HOME

The first offer is your reality check. If your agent told you to declutter, paint, repair and deep clean and you didn't do it, then the offer is showing you the error of your ways. Unless you do some drastic corrections, the only thing you can do is negotiate the buyer's low offer upward.

Negotiation typically works best when both parties get what they want. For example, you may be willing to take less money in exchange for a cash offer or a quicker closing. Your buyer may be willing to pay closer to your asking price in exchange for paying their closing costs, which could be several thousand dollars.

Your willingness to negotiate depends on several factors:

• Can you get something you want in exchange for conceding something the buyer wants?
•  What are your market's conditions? Do buyers have the upper hand or do sellers?
•  How badly do you want to sell? Are you willing to let a few thousand dollars stand between you and the next stage of your life?

Start from a position of strength -- an offer shows you have something the buyer wants. Unless the buyer can get the same thing for less elsewhere, you can safely counter the buyer's offer.

Keep in mind that a buyer will only pay what he or she believes your home is worth. Buyers respond to price, location, and condition. What you paid for the home, or what equity you need out of it, aren't relevant to the buyer.

Homes in top condition sell for the most money. You can't negotiate your home's location, but a poor location can definitely be improved by putting your home in the best condition possible.

If your home isn't spotless and move-in ready, then condition is likely affecting the price buyers want to pay for your home. You can either make the repairs and updates your buyer wants, or you can counter with a carpet allowance, pay HOA fees, or some other concession that will please the buyer.

Before you negotiate any offer, you need to know whether or not you have a solid, serious buyer. This is where your real estate agent is indispensable. Your agent can act as a go-between to make sure your buyer is qualified by a reputable lender.

A real estate agent can give you feedback on your home's price, location or condition, and make suggestions on where you can improve your negotiating position.

Once the buyer makes an offer, your agent can advise you how to negotiate the offer, based on the contract terms, and what she can find out from the buyer's agent about your buyer's motivations.

Your agent can't tell you what to ask for your home or what you should accept, but he or she can tell you what you can do to improve your contract negotiations.

If you don't agree to the buyer's terms, and counter the buyer's offer price, or change the day of closing, or some other term, the home is not yet under contract. Your buyer can initial his or her acceptance, and you have a binding contract.

Or your buyer can do nothing, and you may have lost an opportunity to sell your home.