Many people are thinking of buying Metro Detroit investment properties.  But  what makes a good investment property?  I am going to focus on long term appreciation.

If you are going to buy a investment property for long term appreciation then here are some of the items and questions you should be asking yourself.

1. Can I get positive cash flow out of this property?
2. Is the investment property in good structural condition?
3. Will the area that the home is in be a good area in five years? ten years?
4. Does the area have a good school system?

If you are looking for long term appreciation you want an area that will be stable for years to come.  You want the area to be where people want to move to.  Middle class Americans want to buy homes where their kids can go to school.  A good school system.  A place to raise their kids.

Which Metro Detroit citieswould you think home buyers would want to live in?  Do you think middle class Metro Detroiters would want to buy a home in the City of Detroit?  Or would they prefer to buy in a different city?  Which cities do you think an investment property will appreciate more in.

These are key elements in long term appreciation of Metro Detroit Investment properties.  

http://www.detroitmichiganrealestatehomes.com/004480

I received a call from a young lady the other day.  She said she had gone into a Detroit home being showed by a metro Detroit real estate agent.  The buyer said it was a very nice home.  She was calling me to get pre-qualified for a mortgage.

As she explained what was going on with the home purchase I quickly decided I wanted nothing to do with this deal.  The real estate agent was going to commit fraud.  The asking price was $95,000 for this Detroit Home.  The real estate agent/seller was going to give the buyer $20,000 cash back on the day of closing.  It was not going to be disclosed on the HUD Settlement statement.  The lady said that way the bank would not know about it.

This is fraud!

You can not get cash back on a home purchase and not disclose it to your mortgage company, or the cash back is not disclosed on the closing paperwork.  It is fraud plain and simple.  To this lady it was a lot of money.  A half year of work.  Who wouldn't want that cash.

But what she didn't understand is that she was borrowing the cash, that she would be paying interest on the money, and that she was overpaying for the home.

All she saw was the $20,000 cash.  Probably more money that she has ever seen at one time.  No wonder she was sucked into this deal.

She went her way to find another mortgage lender because she would not listen to me.  Good luck because she is going to need it.  So if the seller, mortgage person, or real estate agent offers you money back on the side..... Run  

http://www.detroitmichiganrealestatehomes.com/00444E

Would I buy a FSBO in this Wayne County buyers market?  NO WAY!!!!

I have been looking at a lot of Wayne County homes with some of my buyers.  When we are out looking we have seen some Metro Detroit For sale by owner homes.  In Dearborn Heights we were looking at $70,000 homes, yet the For Sale by Owner Home was listed at $120,000 for the same home.  In Dearborn we were looking at $120,000 homes, yet the same small colonial by For Sale By Owner home was listed for $190,000.  In Brighton we were looking at $490,000 home and the neighbor who was For Sale By Owner was listed at $590,000.  The homeowner said "the last two houses in the sub were given away.  Why just a year ago our house was worth $610,000.

When we call I have been shocked by how high the For Sale By Owners prices are.  Of course none of my buyers wanted to see any of them.  I can understand why they are For Sale By Owner.  The FSBO'shave not come to grips with the current real estate market.  Unfortunately as realtors we are the bearers of bad news right now.  Some of my friends even called me a pessimist last week.

I wish I could lie and tell you that the metro Detroit real estate market is coming back.  That your Plymouth home for sale should be pulled off the market because it is going to be worth a lot more next year.  I wish I could lie and tell you that.  Unfortunately as a home buyer you need to price your home at CURRENT MARKET PRICES...... NOT LAST YEARS..... OR TWO YEARS AGO.  I want to give you the current sold home prices in your neighborhood and then help you make a decision on where to price your home.

As a home buyer I would call on FSBO's but if their price is way off base don't bother going into the home.  You don't want to over pay in this Michigan Home buyers market.  Don't waste your time or take the chance of falling in love with a overpriced home.  Especially if it is ridiculously overpriced home.  If you overpay for a home now it may take ten to fifteen years to break even.  You may be locked into a home that you overpaid for. 

 

http://www.detroitmichiganrealestatehomes.com/00444C

Northville Real Estate, MI

Pheasant Hills subdivision.  Pheasant Hills has approximately 136 homes in it.  The homes were built during the years of 1988 -2006. The homes are mostly Colonial and Cape Cod style.  Most of the homes have  brick/wood, brick exteriors, 2 & 3 car garages, 3-4 bedrooms, 2 + bathrooms, basements (some walkout). Square footage of the homes range from 2800 - 4400 square ft. The school district is Northville Schools  The location of the subdivision is between 8 and 9 mile roads and between Taft and Beck Roads. The streets that are in the Pheasant Hills subdivision are: Elmsmere Dr Coldspring Dr Millpond Ct  McDonald Rd Pond Island Ct Andover Dr

Here is the latest Northville real estate market update for Pheasant Hills Subdivision Neighborhood as of August 19, 2008. There are 7 Northville homes for sale currently in the Pheasant Hills sub.  The average list price is 593,971 and on the average has been on the market for 273 days. On-Market Residential Price Address Bed Bath   $449,900  92 MILLPOND CT 4 3.1   $510,000  92 COLDSPRING 4 4.1   $525,000  85 ANDOVER DR 6 4.1   $549,900  91 MCDONALD DR 5 4.1   $575,000  100 MCDONALD DR 5 4.2   $698,000  86 ANDOVER DR 5 4.2   $850,000  99 COLDSPRING DR  4  4.1          IF YOU OR ONE OF YOUR FRIENDS, OR CHILDREN WOULD LIKE TO SEE ONE OF THESE LOVELY NORTHVILLE HOMES FOR SALE OR GET MORE INFORMATION ON THESE HOMES EMAIL ME AT INFO@RUSSRAVARY.COM OR CALL ME ON MY CELL AT 313-310-9855 Here are all the Northville homes that have sold in Pheasant Hills, Northville, MI in the last year as of 8/19/2008 Off-Market Residential Status   Price   Address   Bed Bath OffMktDt     SOLD   $275,000   901 COLDSPRING DR   4 4.1 4/30/2008   SOLD   $469,000   891 MCDONALD DR   4 4 9/11/2007   SOLD   $475,000   988 COLDSPRING DR   4 3.1 11/12/2007   SOLD   $564,595   990 MCDONALD DR   4 3.1 10/11/2007   SOLD   $875,000   900 MILLPOND CT D 6 5.2 7/7/2008 5 Northville homes have sold in the last year with an average price of $531,719 after being on the market an average of 147 days.

You will notice the trend in Metro Detroit real estate if you look at several of these subdivision updates.  Northville real estate home values are continuing to fall, but the time on market for Northville homes for sale is about the same.  Even though Northville real estate home values are falling they are not falling as much as the rest of Wayne County home values.

For more Northville Subdivision updates, or Livonia real estate updates check out the Michigan real estate Market reports on the side categories.  You can search Michigan homes for sale on my other website for free. 

http://www.detroitmichiganrealestatehomes.com/00441C

Metro Detroit Relocation tips

                              

 Whether you are moving to Metro Detroit, out of Michigan, or just in state it is stressful if you are not prepared.

1. Get rid of things you don't want to move.  No sense moving items that will stay in boxes for years.  No sense paying to move stuff to have it sit in a box.  Have a garage sale or give it too charity.  You will get a tax deduction for those items.
2. Get lots of boxes before hand.  Go to your local fruit market or buy them at the local moving store. Get lots of packing materials.  If you have breakables you never have enough old newspaper.
3. Get organized.  Get large colored markets or colored tags so you can mark boxes where they can go.  For example Red tags for kitchen, blue for the kids bedroom, orange for the living room.  Label the boxes with what is in them.  Label them on the top and one side so you can see what's inside from anywhere.
4. Take valuable papers, valuables, electronic chargers, and any other important paper work with you.  Don't pack them in the moving truck.  Anything that you might need before the truck arrives.  Some of the things you might want to take with you ................your phone book with all your new important phone numbers, home closing papers, check books, bank account info, new school information, etc.
5. If you have pets, pre-plan where they are going to stay, or how you are going to travel with them.  Do they need updated shots?  Do they have id tags?  Do you have their lease, food, dog bowls, and collar in your car?
6. Have you contacted the new school for what is needed for your kids?  Get their shots updated for the new school.  Have their school transcripts with you.
7. Make a list of all the things that need to be done.  A Things to do list and when they need to be done will make your life easier.  Triple space the list so you add more things to do between.  Don't be afraid of redoing your list.

Buying Metro Detroit real estate or selling a Michigan home is crazy enough without adding moving to it.  Every preparation you can make before hand will help make your Metro Detroit Home move  a breeze.

My thought of the day is

"The secret to a genuinely peaceful world is within us.
We can make it so, if we all start now.
Right now, pledge to do acts of kindness each and every day
Be gentle, kind, caring, and loving
Always smile. Laugh!
Learn. Teach. Above all, be patient.
Share, be part of a team, and be fair.
Listen. Sing. Play. Be the music.
Hug someone.
Remember the ultimate goal of true unity...
And the world will live as one."

Amanda Beadle written in the 10th grade 

 

http://www.detroitmichiganrealestatehomes.com/004408