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.

60% of Homes Will Be Sold Between May and August. Staging Tips To Help You Sell Yours.

The winter home selling season was crippled by the polar vortex, especially in the east and northeast, so there's pent-up demand from buyers who've been waiting for better weather to brave the house hunt. Mortgage rates are still at historic lows, so buyers ARE poised to buy and ready to hit the streets.

Sixty percent of all homes in 2014 will be bought and sold from May to August. Putting your home on the market at the beginning of the selling season will help your chances of snagging a winning offer before buyers turn their attention back to school starting in September.

Beach Front Property? Woman Turns Front Yard Into A Beach

Kansas City, MO- What do you call a house surrounded by sand? Sounds like a beach house, right?

But get this, there's a home in Kansas City, nowhere near the beach, that's completely enclosed in sand.

Homeowner, Georgianna Reid, says she decided to convert her yard into a beach-like atmosphere after contractors tore it up.

There’s even beach chairs in front of her home.

While some neighbors admire her unique landscaping decision, others feel it's not the right look for the neighborhood.

Some even filed complaints with the city.

However, in the end, the city says Reid isn't violating any codes because the sand is being used for landscaping.

"I slowed down to see the statues and everything," said resident Kathy Devine. “I like it"

Other residents disagree.

"I think the house looks revolting with all that’s out there," said neighbor Edward Bisby.

"It just doesn't fit in. It just doesn't fit in the Brookside neighborhood I feel," said neighbor Betty.

Reid says part of the reason she turned her yard into a beach was for less upkeep.

"Now being over 60 I've decided that I've owned the house for 33 years, and that I wasn't going to mow anymore or water," said Reid. "It'd all depend on how my neighbors would come by - what are you doing to your yard? I would say, I’m putting gin the largest litter box in the world."

Turns out, it took Reid 80 tons of sand to completely cover her yard.

DON'T RISK YOUR SAFETY, LIST WITH AN AGENT

One of the best reasons to list your home with a real estate agent isn't just about getting more money for your home. While a real estate agent can get you up to 14% more for your home, according to the National Association of REALTORS®, he or she can also protect you and your property.

When your home goes on the market, you don't know where your buyer is going to come from -- the Internet, the sign in your yard, a neighbor referral or the buyer's agent. Having your home professionally listed makes your agent the point of contact so you don't have people coming to your door who aren't qualified and ready to buy a home.

To expose your home to the most qualified buyers, your listing agent operates within a cooperative of real estate brokers called the multiple listing service (MLS). Competing brokers may bring their buyers to your home and receive a share of your agent's commission for helping to sell your home.

The MLS is the fastest and broadest way to expose your home to as many ready, willing and able homebuyers as possible. Through the MLS, your home may be promoted on Internet sites such as Realtor.com, Zillow and Trulia, where homes are showcased with virtual tours and multiple photos. Your agent may showcase your home in local media and put a sign in your yard so interested buyers can drive by and see your home's curb appeal.

Serious buyers use these tools to choose homes they're interested in. They realize that your home is listed through an agent and will get in touch with their own agent or your agent if they're interested. Anyone who ignores or tries to circumvent these obvious signs of agency is not the buyer you want.

Real estate professionals have ways of identifying genuine buyers. True buyers are prepared and ready -- they've been preapproved by a reputable lender, they're represented by an agent, and they're willing to share information about their parameters and timeline for buying a home.

What about open houses? Most real estate agents offer them only when they have increased security to protect your home (and themselves), such as asking another professional or a lender to accompany them.

Open house visitors are required to sign in, and some agents ask to see and make notes of drivers' licenses. Serious buyers won't mind these precautions, but someone who is interested only in decorating ideas or stealing prescription drugs from your bathroom won't likely comply.

Since you're being represented by an agent, there's no reason to open your door to anyone who says he or she is a real estate agent or a buyer unless they have an appointment.

Simply direct doorbell ringers to call your listing agent for an appointment. If they try to plead, bargain or get angry with you to get you to open the door, don't do it. Call the police.

There's a good reason why 88 percent of sellers list with a real estate agent over selling their home by themselves. Don't risk your safety -- it's never worth it.

HOW TO NEGOTIATE WITH SELLERS

If you dread the negotiating process when buying a home, never fear. When you hire a Realtor you will have a partner that is an experienced negotiator who helps keep the bargaining from becoming emotional and veering off track.

Your Realtor must know your desires by heart and have quick access to you if a negotiation point needs to be made. It's important to stick to the strategy you and your agent have agreed upon -- showing the seller how strong your offer is.

First, get pre-approved for a mortgage loan. That means your mortgage lender has reviewed your credit history and assets, checked employment and income, examined your debt-to-income ratios, and has pre-approved you for a certain amount, terms and interest rate so you know exactly how much you can spend.

Being preapproved shows sellers that you are prepared and able to buy. Before you submit an offer, ask your agent to find out more what the seller wants as far as terms. The more your offer matches up with the seller's requests, such as a closing date, the more likely your offer will be accepted.

Find out when the house will be vacated, if any repairs or improvements are planned, and if the seller has any pressure points such as a relocation deadline. Also, you'll want to review the seller's disclosure of the condition of the property.

Your agent must also find out if other offers are on the table. Your position is stronger if there are no other offers. The seller may be less likely to bend on price concessions or repairs if there are other offers.

Have your agent pull up the most recent CMA (comparable homes recently sold or on the market) within a reasonable radius of the home, so you can sculpt your offer price. Be sure that you are comparing apples to apples in terms of updates, size of the home, amenities, location, schools districts, etc.

Once these steps are made, you are ready to write an offer.

Making the offer

Make yourself think like the seller. It helps you anticipate what the seller will accept in price, terms, and other conditions. By considering the seller's position, you will likely create an offer that is either accepted or strongly considered.

Your offer should be clear on the terms, closing dates, repair requests or other conditions the seller needs to meet and it should be accompanied by a letter from your lender that you are preapproved to buy the seller's home. Include a cover letter summarizing your strengths as a buyer in terms of creditworthiness, flexibility in closing, and the strength of the offer.

Don't insult the seller with an offer that's too low or requires too many concessions. The seller may be nostalgic about his or her life in the house and may not like the idea that you want to remodel.

The only thing a seller can't argue with is a strong set of comparables that show the home is overpriced or out of date. These are homes that have sold that are nearby (within two blocks) and similar in age, size and features. If you can show that a similar home has sold within the last two months for less than the seller is asking, that's good.

Be sure all conditions, repairs, etc. are agreed to in writing. Some sellers may feel that a handshake covers a promise, but it's essential to be clear on paper what is expected and when. A seller's promise to paint should be included as an addendum to the contract and include all details, such as primer, exact color and type of paint, how many coats, and when the work will be finished for inspection.

Negotiating after inspections

The offer is negotiated and accepted, the earnest money is at the escrow agent's office. Now the inspections occur, and this is where the contract negotiations can break down.

No home is perfect, not even brand-new construction. During the inspection process, the inspector is usually required to tell you about any condition of appliances, heating and cooling systems, roofs, electrical and plumbing systems, etc, and if your future home is up to current city codes.

Sellers are usually not required to bring a house completely up to current local building codes. Negotiate a repair only when a system is unsafe or a major repair is needed to make the system operate effectively.

As long as the seller has a reasonable explanation of what your position is and why, and communication remains open, the seller should have as much desire to make the contract work as you do.

New State of Michigan Appraisal Management Company Licensing Requirements

New State of Michigan Appraisal Management Company Licensing Requirements

Contact: Melanie Brown 517-373-9280

Agency: Licensing and Regulatory Affairs

May 28, 2014 - On December 27, 2012, Gov. Rick Snyder signed into law House Bill 4975 of 2011 which became PA 505 of 2012, effective April 1, 2014. This new law makes it mandatory for appraisal management companies (AMC) to be licensed in Michigan for the first time. 

Section 2663 of the Occupational Code, MCL 339.2663, provides that a person shall not do any of the following in this state without an AMC license:

•             Directly or indirectly engage or attempt to engage in business as an AMC.

•             Directly or indirectly perform or attempt to perform appraisal management services.

•             Advertise or hold itself out as engaging in or conducting business as an AMC.

•             Use the term “appraisal management company,” “mortgage technology company,” or any similar term that indicates the person is licensed under the Occupational Code.

Currently, the Corporations, Securities and Commercial Licensing Bureau (CSCL) in the Department of Licensing and Regulatory Affairs is reviewing applications and issuing licenses to applicants who meet the AMC licensing requirements, as defined in section 2665 of the Occupational Code, MCL 339.2665.

As of May 27, 2014, CSCL has received 106 applications for licensure and has issued 56 licenses.  If an incomplete application was received, a deficiency notice was sent to the applicant.  Since this law went into effect, there have been no complaints and there are no open investigations regarding AMCs.

An application for licensure may be downloaded from the www.michigan.gov/amc website by clicking on “Forms and Publications” on the right-hand side.  The fee for a three-year license is $2,000.00.

For more information about LARA, please visit www.michigan.gov/lara

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10 WAYS TO GET THE HOME YOU WANT

Rates may soon rising, banks are still operating under tight lending conditions, inventory is shrinking, and competition for well-priced homes, especially in the first-time buyer range, is fierce. Are you being shut out of the real estate market?

With some advise from Real Estate at MSN.com,  here are 10 ways to improve your chances of getting in the market and getting the home you want.

1. Know what to expect from the process

No two real estate transactions are exactly the same, but buyers who have an idea of how things work will have a leg up. "Buying your first home is one of the most important decisions of your life," said MSN. "Yet most people lack in-depth knowledge of the process." Working with an agent you can trust is key. And while you might be tempted to use the lady down the street who just got her license or your brother-in-law's cousin's stepbrother, your best bet is to ask for referrals from your core group and interview a few. After all, there are hundreds of thousands of dollars and the American dream at stake.

2. Know the market

In real estate, things can change quickly. Make sure you keep up on what's happening with mortgage rates as well as home sales and prices in your target neighborhood. You'll also want to know if any homes are in default - this will shed some light on neighborhood stability, and may also uncover a great real estate deal for you.

3. Know your neighborhood

That abandoned house on the corner might be a great deal, but as for neighborhood charm…well, how do you feel about a real-life Breaking Bad situation going on across the street? You don't want to end up on the news as a witness to a drive by, so make sure you consider more than price when narrowing down neighborhoods. How are the schools? Great Schools can give you some insight, but you'll also to simply ask those who live in the area. If you don't know anyone, reaching out to your contacts through social media is a good way to make use of your extended network. You'll also want info on area crime rates, which your agent should be able to provide. The local police department can also give you some information. Finally, you'll want to check registered sex offenders in the area, which you can do on a site like Family Watchdog.

4. Know your credit score

Minimum scores needed to qualify for a mortgage vary depending on the type of loan, the lender, the going rates, the amount of money you are putting down…it's a complicated equation your lender can help explain. For an FHA loan, which is what many first-time buyers use because of the more relaxed requirements, buyers typically need a "minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent," said FHA. Buyers should know that a score that low in combination with the minimum down payment may result in a more complicated loan approval process and a higher rate. And "borrowers need, in general for a conventional mortgage, a minimum FICO score of about 650,. Remember, the higher your credit score, the lower your mortgage interest rate will be.

5. Know how much it really costs to buy a house

Down payments are one thing. Have you factored in any upfront fees you are expected to pay? Your earnest moneyrequired to show the seller good faith? How about your closing costs? These will vary depending on your lender and your loan, but closing costs are usually between three and five percent of your loan amount, which can be a hefty and sometimes unexpected output of cash on top of everything else you just paid. For a detailed breakdown of FHA closing costs, click here.

6. Know how much you can afford

And stick to it, even if it's tough to find a house you like. Busting your budget won't pay off in the end if it's a constant struggle to keep up with your mortgage payments. "The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary," said CNN Money. "But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford."

7. Know how monthly payments really work

About those calculators…many real estate sites and online calculators calculate principal and interest only, but as a homeowner, you will also pay insurance and taxes. If you put less than 20 percent down, you will also have to add in private mortgage insurance. And if you are in a planned community, you need to account for homeowners association (HOA) dues as well. Make sure you ask your agent about HOA fees, and ask your lender to do a calculation including everything you will pay on a monthly basis. You can also try this one.

8. Know how to win friends and influence people

Nothing tests the patience like losing out on the home you've fallen in love with (unless it's losing out on 2 or 3 or 10 - hey, it's tough out there for a first-time buyer.)  A good agent should be able to reach out to his or her network to potentially find you a home that is not currently on the market or help you stand apart. But you can also take it into your own hands! Try a little tenderness, and you just might get ahead. After all, not EVERYTHING is about the bottom line. "To stand out from the pack, an increasing number of buyers are taking the old-fashioned approach and penning a love letter to sellers telling them what they adore about the house and why they are the best suitor to end up with it," said MSN. Sometimes, all it takes is a little something extra to take you from frustrated homebuyer to happy homeowner, and making a personal connection with a seller who may be overwhelmed with offers can only help.

9. Know how to play hardball

Is somebody who's working for you under performing instead of over-delivering? Go back to that whole "working for you" thing. If you remember that your realtor, your lender, and your title company are all there to help you - but they're being paid to do so - it'll be easier to have a tough conversation if and when necessary.

10. Know when to cut and run - and how

An inexperienced, overly busy/inattentive, unethical or abusive agent or lender can turn what should be a joyous experience into a disaster. If you reach the point where it's time to move on, heed this advice from MSN: "Once you're ready to break up with your agent, make sure you have this dissolution in writing. That protects you from paying unnecessary commission and keeps the agent from continuing to work on your behalf after you've moved on. Make sure you have the agent revise a contract of representation if you signed one to make it clear that the relationship has been cancelled."