Ann Arbor Real Estate Talk

Weekly we get calls to the Ann Arbor Real Estate Team, Missy Caulk with buyers asking us to help them find a house or condo with a rent with an option to buy.”

What is a Rent with a Option to Buy

Renting with an option to buy is pretty easy to understand, first you rent and then you buy the same home. Many times renting  becomes necessary if you have been subject to a Short Sale or a Foreclosure the last few years and you are not capable of getting a mortgage on a home at this time.

In a few years time this would not be a issue. Therefore renting with an option to buy is great alternative for buyers.

Sometimes the buyers have had their credit destroyed by a divorce and so renting for a year may be more feasible until they can get back on their feet.

Sometimes men need to rent with an option to buy because the divorce is not final and they need to rent until it is. In Michigan we still have dowry rights so any property owned until he divorce is final the wife gets part of the property.

The Problem

So what’s the problem with renting with an option to buy?  First of all homes that are available with a rent to option to buy are hard to find, we are in a rental shortage right now in Ann Arbor, Saline and Dexter. There are more people wanting to rent than homes available so the ones that do come on the market go quickly.

Second,many sellers are reluctant to take a offer with the rent to own option. They fear is they agree to rent for 1-3 years until the buyer can obtain a mortgage that the “market will go up” and they will be stuck selling a home or executing a purchase price now that in three years will be too low.

Third, may local REALTORS don’t publish in the MLS remarks that their sellers would be open to to rent to buy option. Last, week we had made a call to a local agent as we have a buyer who wants to rent for ONE YEAR and then purchase. Having gone through a Short Sale due to job loss and divorce  years ago, he is not able to get a loan. His credit is outstanding, and he has a new job.

So we called up the listing agent on a home we had shown him and asked if the sellers would be willing to take a rent to own on their home (which has been on the market for 9 months and smells like smoke)

“No”

Never mind he didn’t even ask his sellers, that is a whole different story. Just NO.

Now, if I had been trying to sell my home for 9 months, no offer and had a ready, willing and able buyer I would have 1) asked the sellers, 2) done it.

These are some of the difficulties with Rent with Options to buy. But, many times it can be a win win for both buyer and sellers.

If you have a home you would be willing to sell with a rent to option, give me a call or email as we would love to talk to you.

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Post from: Ann Arbor Real Estate Talk

Renting with An Option to Buy in Ann Arbor

Today we received a notice from the Ann Arbor Area Board of Realtors alerting us to a new mortgage scam floating around the country.

How it works

This scam involves sending letters to borrowers to inform them that a new company has assumed the management of their loans and to start making mortgage payments to the new company. The selling of mortgages is a pretty common thing so BUYER BEWARE!

Since many home owners aren’t familiar with the mortgage transfer rules, they follow the directions of the letter.

A month or two later is when they realize they’ve been tricked. But, not until they have made several mortgage payments to the crooks.

Mortgage Servicing Rules

The FDIC Mortgage Servicing Laws require that they receive 2 letters.

1) One from the current company notifying them that as of a specific date their payment should be sent to a new company and

2) One from the new company that provides mortgage payment information (principal, interest, and escrow). Both letters should include the loan number.

Another precautionary measure, borrowers may contact their original company to verify that the letter they received is legitimate.

If you are looking to buy a home in Ann Arbor, check out our home search site with Google maps, Satellite images and multiple photos.

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Well I thought this would happen, after the home buyer tax credit the amount of home sales in April of 2011 decreased by 17% from last April.

That is why we need to leave the market alone and let it adjust on it’s own.

The good news is we are up almost 10% from last month in Ann Arbor area home sales.The interest rates are still low which is amazing to me. But, exciting for the buyers working with Missy Caulk & TEAM.

Here are the graphs based broken down my area’s throughout Washtenaw County.

Condo Sales in Ann Arbor

Search the Ann Arbor Area MLS

Related articles

• Ann Arbor First Time Home Buyers in 2010 (annarborrealestatetalk.com)

In Ann Arbor our purchase agreements provide a time frame of 48 hours to do a final walk-through before closing. Typically this is done the night before or an hour before the closing.

This is really important for a new home buyer to do. Many times you may think, oh I just saw it, measured for curtains, did an inspection but…take 15 minutes and make sure everything is still the way you last saw it.

Pre-Closing Tips – Preparing For Your Final Walk-Through

Be sure that you conduct a pre-settlement walk-through and check each of the systems prior to settlement. Review the overall condition of the home just prior to your taking ownership and confirm that systems that were operating properly during the home inspection are still in working condition.

Occupied House: If the house was occupied at the time of our inspection, personal belongings, furniture, etc., may have obscured items/areas and made them inaccessible for inspection. Normally these belongings are removed prior to the pre-settlement walk-through and you will have an excellent opportunity to view all of the surfaces and systems at that time. If an item was obscured during our inspection and you feel that it may be defective after you have had an opportunity to view it during your pre-settlement walk-through, you should discuss it with your title company or attorney right away.

Vacant House: While a vacant house is easier to inspect visually than an occupied one, there are disadvantages. This is particularly true if the house has been vacant for a long time. Seals and bearings of mechanical systems may have dried out and caused accelerated deterioration or failure. Further, possible leaks may not have been detected during your inspection because lack of use had prevented accumulation of sufficient water to create a stain or other observable evidence.

Utilities Off: You should ensure that the utilities will be turned on prior to your pre-settlement walk-through inspection and that you will have an opportunity to check all of the systems. If the utilities were off at the time of your inspection, contact your inspector to ascertain the steps/checks you should perform to satisfy yourself that any un-inspected systems are working properly prior to settlement.

Declaration: If a declaration has been made by the sellers or agents concerning the age of any item, condition, repair, service contract, or warranty, those statements should be placed in writing. A request should be made for the seller to provide you with all instruction books, operator’s manuals, warranties, and other documents related to the various systems and appliances within the property. This paperwork will be extremely useful to you.

Checklist: Don’t forget to bring along our complementary “Walk-through Checklist.” Using our Walk-through Checklist is a required part of our inspection service agreement and provides practical, useful information for you at the time of closing.

Article courtesy of U.S. Inspect.

Below is a chart for the recent MEAP scores for the School district in Ann Arbor and the surrounding communities of Saline, Dexter, Chelsea,Milan, Lincoln, Ypsilanti, Manchester, Willow Run and Whitmore Lake.

Included in the chart is the State of Michigan average and proficiency of each subject tested, Math, Social Studies, Writing and Science.

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The Medical Residents “match” letters went out of Thursday, across the United States.

Congratulations if you are moving to Ann Arbor.  We are DRS Certified, and each year help many U of M Residents relocate to Ann Arbor for the duration of your residency.

I am sure there is a number of you moving to the University of Michigan trying to decide if you should buy or rent.

We are currently working with 8 newly accepted residents moving to Ann Arbor.

The Missy Caulk TEAM can help you whatever way you decide is best for you during your Residency.

If you want to purchase or rent you can start your home search here.We have condo’s, single family homes and rentals on the Ann Arbor homes for sale site. It is a direct MLS feed so the data is accurate.

DRS Agent™ is an exclusive designation to a limited member group of agents nationwide that have achieved a level of success and desire to enhance their real estate business with medical professionals. The DRS Agent™ Network is proud to associate itself with PhysicianLoans who have been working with medical professionals since 1993 and have helped thousands with niche product home financing.

Call us today at 734-926-9797 and we will get right back to you.