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.

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.