That's what a potential client said, "my real estate agent told me I could buy a house"  This client had recently sold a Redford home.  He had orginally bought the house for $95,000 and it was worth only $25,000 when he sold it.

The client had sold the home as a short sale because the homes value had fallen so much and the area was getting worse.  He could afford the payments but he was more concerned with the "area".  He thought the crime had gone up.  It was now a undesirable "area" for him.  He wanted out.

So he listened to a metro Detroit real estate agent that told him that he could buy a home after they sold the Redford home as a short sale.  Unfortunately he let the payments lapse.  He was over 120 days late on his payments. When you go 120 days late on your mortgage payments that is as bad as a foreclosure on your credit report.    So now he basically has a foreclosure on his record because of the 120 day lates. 

Now he can't buy a new Michigan water front home for 3 years.  He wanted to look at Pontiac Lake homes White Lake and White Lake homes in Oakland County MI, but now he has to rent. 

My advice to anybody considering a short sale is to research it, be sure to consult with an attorney, a mortgage person, and CPA to find out your potential liabilities.  If you have decided to sell your home as a short sale give me a call or email me.  I will help you through the short sale process.

My quote of the day is:

 Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, vision cleared, ambition inspired, and success achieved.

                                                                              Helen Keller

I can't tell you how many times I have heard sellers say "my house is the best" or "my house is nicer".  So many Southeastern Michigan home sellers think their house is the "bees knees".                    

As real estate agents we hear that a home down the street sold for $250,000 a year and a half ago and "my house is much nicer".  Yes it might be true that the house is nicer, BUT the issue is the time.  The market has changed from a year and half ago.  In some cities home values have fallen 17% in the last year and a half.

So even though your house is nicer doesn't mean that it is going to get a higher price than the neighbors.  In fact the home is  most likely going to get much less money.  The easiest way to find out what the home is worth is too have your Real estate agent do a comparative market analysis showing recent solds.  

It only matters what homes are selling for now not what they sold for a year or two ago.     

Plymouth MI sellers advice - should I offer a home warranty to the buyer?

Plymouth MI sellers advice - It never hurts to offer a home warranty to the buyer.  A Plymouth MI home buyer will feel more comfortable with inspection issues if there is a home warranty that is being paid for by the seller.  It may make the buyer feel better about that "older furnace" or the "dated hot water heater" or "rusted air conditioner".  You can even get coverage for your pool.

A home warranty is relatively cheap for the perceived coverage it gives.  If the home buyer thinks there is a possible problem with your Plymouth MI home they will like getting a home warranty plan.  You can offer to pay for the home warranty right in the beginning when you list the home, or you can offer it after the home inspection.

So this is my advice to you..... spend the money for a home warranty for the buyer if you believe there are issues with your home or if the buyer asks for one after the home inspection.

Just my thoughts

More Wayne County MI home selling advice

My quote of the day:

At times the road of life can seem dark, cold, and lonely. One day it seems, nothing in the world can stop you from accomplishing your dreams. Then, unexpectedly a situation arises out of nowhere and the doubt, fear, and anxiety creep in. Perseverance Quotes give us the insight and strength to do what's necessary to accomplish your most treasured and sought after dreams and goals. They provide you that little extra boost you need to keep on keeping on even when the world says it can't be done. --

                                                                                                                                                      Robert Alan

 Do I have to pay taxes on my Metro Detroit short sale?  Normally when a house goes into foreclosure a bank sends the owner a 1099 in the amount of the deficiency.  Deficiency is the difference between what the house sold for and what was owed on the house.

But a few years ago President Bush signed the Mortgage Forgiveness Debt Relief Act  which exempts acquisition or home improvement debt on one's primary residence from taxation.   Which is a great relief for all the homeowners that are losing their home.  It would be bad news to owe taxes on a home you lost.

The rules are:

•  The limit of the forgiveness is $1 million for single or $2 million for joint tax returns.

Right now banks can send a 1099 for second homes or investment properties that have gone into foreclosure or sold as a short sale.  Many Metro Detroit real estate agents tell their short sale sellers not to worry about a 1099 without asking their seller if they pulled money out of their home through a refinance.  If you paid off credit cards, or used the money to buy a car, or some toys then you could possibly owe taxes to Uncle Sam.  Will the tax man catch it?  I don't know.

The real estate agent needs to ask what the seller used the money for.  It could be a possible liability issue for the real estate agent.  If the seller gets a 1099 guess who is going to get sued.  It is best for the seller to check with a CPA and an attorney to find out their potential liability on doing a short sale.  That's why I always recommend all my clients to check with a CPA or an attorney before they going into foreclosure or put their home up for a short sale.  

Metro Detroit home seller tips

My advice is to use only one photo on your Metro Detroit home listing when putting on the internet ------ IF THE HOUSE IS TRASHED INSIDE.  You don't want to show:

• the non updated kitchen (especially if it has plywood cabinets)
• the 1970's green shag carpeting
• the rooms full of wall paper (especially the kitchen vegetables or fruit wall paper)
• the holes in the wall
• the mold in the basement
• the non updated bathroom (especially if it has the green tile or Pink and Black tile)
• the cluttered junk filled rooms
• the dirty, marked up, unpainted walls
• the outdated windows
• the velvet Elvis wall hanging
• the beautiful linoleum flooring
• your collection of (clowns, old farm tools, animal heads, southwestern decor, to name a few)

The goal is to get the home buyer into your house.  So my Metro Detroit home seller tip is to use the least amount of photos possible when you have nothing to show. 

 If the kitchen is small or out dated. DON'T TAKE A PICTURE OF IT.  If back yard backs up to a commercial building.  DON'T TAKE A PICTURE OF IT.  If the dog has torn up the wood work.  DON'T TAKE A PICTURE OF IT. 

That's the best home selling tip I can give if the home is below par.  You have to get the buyer inside.

Here are more metro Detroit home seller tip articles

4 things that affect the sale of your Wayne County home / Oakland County MI home

What to give the Michigan home buyers at the closing table

Fast Livonia Home Sale Tips

Saving A Deal : Pointers

Negotiating to yes

My quote of the date:

"Love is a temporary madness. It erupts like an earthquake and then subsides. And when it subsides you have to make a decision. You have to work out whether your roots have become so entwined together that it is inconceivable that you should ever part. Because this is what love is. Love is not breathlessness, it is not excitement, it is not the promulgation of promises of eternal passion. That is just being "in love" which any of us can convince ourselves we are. Love itself is what is left over when being in love has burned away, and this is both an art and a fortunate accident. Your mother and I had it, we had roots that grew towards each other underground, and when all the pretty blossom had fallen from our branches we found that we were one tree and not two."
-St. Augustine