Dearborn Michigan Area Real Estate Blog

God bless all of the brave American service men and women

who are willing to put their lives on the line everyday so

we can enjoy the freedom that we have in this country.

The near-record low mortgage rates seen during the past few weeks may not be around much longer.

Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to raise key interest rates, driving up mortgage rates, says Stephen Stanley, chief economist at Pierpont Securities LLC.

The evidence includes more consumers are paying their bills on time. Past-due accounts at American Express declined 34 percent compared to a year ago, and Target Corp. reported its lowest delinquency rate in two years during the second quarter.

In another sign of economic improvement, fewer banks reported tightening lending standards this month, one reason consumer borrowing rose for the second time in three months.

“If  lending standards start to stabilize, that’ll be another reason to remove the emergency measures, including the zero rate,” says Jay Bryson, a senior global economist at Wells Fargo Securities LLC in Charlotte, N.C., who formerly worked at the Fed in Washington.

Source: Bloomberg, Bob Willis and Anthony Feld (05/28/2010)

Question:

“One quick question.  Since I am unfamiliar with the real estate market in the US I would like to know if I can expect a “discount” if I will pay cash for a property? A one-off payment?”

Thank you,

Answer:

Regarding your question about getting a “discount” if you are paying cash for a property. Please keep in mind that every home that is for sale and on the market has a certain amount of negotiation room built into the price. Depending on the listing price this could be anywhere from 2% to 10%. Read more…

Steve and Vicki — you were terrific to work with!  We chose to work with you because of your professionalism, your team effort, and your marketing plan that took into consideration the tough economic atmosphere in which we needed to sell our house.  You did a great job with our listing in terms of description and photos, and additional effort to post on Craig’s List several times.  You coached us well along the way and helped us to be fully prepared for the closing.  We am happy to recommend your services to others.
 
Home Sellers: Richard and Barbara Thomas – May 25,2010

Some buyers ask why they should have a private home inspection.

There are a few very good reasons why they should… 
 
 To have a qualified expert examine the property before you fully commit
to the purchase. 
 
 To learn more about the property, how things work and what you will need to do
later in regards to maintenance items.
 
 To find any major flaws, problems, defects, issues, etc.* with the home/property
before you have fully committed to the purchase. Read more…

Many homeowners do not have a full understanding of how the asking price of a home should be established. They either base their decision on what they need to “get out” of the sale in order to buy another home, or they base it on what they paid and adjust for inflation. Another mistaken concept that prevails is that the real estate agent sets the asking price. The truth is that buyers are the ones who establish what your home is worth in today’s market.

When an agent comes to your home and provides you with a competitive market analysis (also known as a CMA), he or she will examine what recently sold and comparable homes have sold for. Read more…