There comes a time in every person’s life when they are ready for a change. Sometimes, we or members of a family change jobs or schools. Unfortunately, even a change of a spouse is not that uncommon anymore. Whatever the reason, these changes often require us to change our addresses, too. If you can choose to move anywhere you want, where would it be? Probably somewhere exotic, right? Well, if those exciting fantasies are not realistic for you, think about Michigan. The lovely Great Lakes State in the Midwestern region of the country is home to about ten million people. Being the tenth most populous state of the USA, it’s no wonder that the Michigan real estate market is thriving. Whether you are looking to buy, sell or just own a property, there are some great opportunities for you.
What is Michigan’s Real Estate Market Like?
In one word, the Michigan real estate market is very dynamic. Because of the large number of people living here, it’s normal that there is always something changing. Every day a new property pops up on the market. Of course, every day some property gets taken off of it, too. So, you will need some research, preparations, and guidance. Just like you need the assistance of a professional moving company if you are moving to Michigan from another county or state, you will need assistance for the Michigan real estate market. That is why we divided this subject into three parts, so you know what to expect
What are the Things to Know About Michigan Real Estate?
There are three possibilities that concern the real estate market:
- buying a property,
- selling a property,
- or owning Michigan real estate
Once you go through these steps, you will know what awaits you on which road. No matter what group you belong to, make sure to consult and hire a reliable and trustworthy real estate agent, like Ed Constable. He will be by your side every step of the way. That will make this complex process a little easier on you. With the right guidance and support, you will learn that buying and selling real estate doesn’t have to be so stressful. So, you can relax and put your trust in the hands of an experienced professional, who knows every corner of the Michigan real estate market.
Firstly, think about this very hard. Are you currently at a place in your life to buy a home? We know that everyone gets tired of their landlords sometimes, but is that a big enough reason? Ask yourself if you are truly ready for this kind of commitment. If you are not completely sure what the near future holds for you, maybe it’s better if you wait. Are there any possibilities to relocate because of your job? Perhaps you are thinking of going back to school in some way. These are all questions to think about when deciding whether to buy a house or not.
We are not trying to discourage you from buying a house, but we want you to be careful. Buying a home is a long-term process that requires a lot of commitment, time, professional help, and, of course, money. Everyone can understand why you can’t wait to buy one of the waterfront homes that Michigan real estate has to offer. But, can you afford it? If you want to buy a home, you need to prepare:
- A down payment – which is usually 20% of the property’s worth.
- Cash for closing costs (fees and charges to arrange your mortgage loan) – transaction costs, homeowners’ and mortgage insurance, your share of that year’s property taxes. It usually goes up to 2-3% of the property price.
Your mortgage itself, of course – which depends on the value of the property and the number of years that you’re getting a loan for. People usually compare that with the monthly rent, to see what’s more cost-effective. Unfortunately, they forget about the hidden costs that go hand in hand with owning a property. Not to mention the costs of maintaining your own place.
Selling a Property
Are you selling a property in the Michigan real estate market? Make sure to ask a real estate agent to give you a free market analysis, so you could sell your home faster. They will also give you specific information about the physical condition of your home, that you have to provide to buyers. If you don’t provide the documents, the buyer may cancel the sale or sue you for fraud. Of course, that is in case they discover something about the place that you didn’t tell them prior to buying. You will have to fill out the disclosure form if you are selling residential property. It can contain one unit, like a family house, or up to four units, if you’re selling a building with up to four apartments.
There are some situations when you will not be obligated to provide disclosure documents. Those are the cases where the sale is happening between cotenants, for example. Or between spouses, children, and parents, or grandparents. Ask your real estate agent to tell you about the rest of the situations where you don’t need to provide disclosures. In all other cases, make sure to fill out the form and disclose the information that you know. For everything that you are not sure about, or don’t have the information on, check the box in the form that says “unknown”.
Owning a Michigan Real Estate Property
If you are planning to build new real estate, for example, and become a landlord, you should make sure to know some things about renting. That will help you avoid legal problems with your tenants.
Firstly, when you are choosing your tenants, you must do so, by Michigan law, without discrimination, regarding their sex, race, religion, status concerning family, or anything else. However, you can reject potential tenants if they have a bad credit history, negative references, or bad behavior. If you find yourself in a situation where you have to evict someone because they don’t pay rent, make sure to follow the rules and procedures. In Michigan, tenants have seven days to pay rent or move out before you can file for eviction. When it comes to the amount of the deposit, Michigan state law limits it to 1,5 months’ rent. And if you are planning to be a good landlord, make sure to return the deposit within 30 days after your tenants move out.
As you can see, there are a few things to know about the Michigan real estate market. But not to worry, once you find the right real estate agent to be your partner, everything will go much more easily than it sounds.
Call me today and have my teamwork for you. You will be thankful that you did!
Your Realtor for LIFE
Do you want your home selling experience to be made easy?
Ed Constable is a top Realtor in Fenton, MI, and surrounding areas!