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Energy-Efficient Mortgages

Thursday, May 15, 2014
by Tom Stachler,ABR,CDPE - Group One Realty Team

Homeowners who are interested in improving the efficiency of their homes can consider taking out an energy-efficient mortgages. Energy-efficient mortgages are loans that can be taken out to finance upgrades on a Home that will benefit both the homeowner and the community by working to reduce the carbon footprint of the property. Typically, expenses involved with making the upgrades are added to the overall mortgage loan so that additional loans do not need to be taken out by the homeowner to make the upgrades.

An important aspect of an energy-efficient mortgage (or an EEM) is that they can feature exceptions to debt-to-income rules that restrict homeowners from taking out additional financing. Therefore, a homeowner who takes at an EEM can borrow more money to put toward his or her home than would be possible through a traditional mortgage. These exceptions are justified due to the fact that- despite the fact that initial expenses will be higher- the EEM should reduce the cost of living in the home and maintaining the home over time. However, taking out an EEM requires an energy audit carried out by a recognized expert to prove the benefits of the proposed energy-efficient upgrades.

There are three types of EEMs: the conventional EEM, the Federal Housing Administration (FHA) EEM, and the Veterans Administration (VA) EEMs. Below is an explanation of each type.

  • Conventional EEMs- This is the most common of all of the different EEMs. When a lender is determining whether or not a given energy-efficiency update can be financed, that lender can factor the future energy savings that will be brought about by the update into the borrower's income when determining the borrower's debt-to-income ratio. In this way, the homeowner can borrow more money and still be within applicable debt-to-income rules.
  • FHA EEMs- There are a variety of different underwriting conditions that need to be met for a homeowner to take out a FHA EEM. Through this type of EEM, the homeowner can borrow whichever amount is less: the overall expenses involved with the improvements/inspections, or the lesser amount of either 5 percent of the property's value, 115 percent of the median price on a single family home in the area, or 150 percent of the loan limit specified by Freddie Mac.
  • VA EEMs- This type of EEM is available to qualifying veterans, and it can consist of a loan of anywhere between $3,000 and $6,000.
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Tips for Winter Home Selling

Tuesday, February 4, 2014
by Tom Stachler,ABR,CDPE - Group One Realty Team

The fact that days are shorter and colder in winter often means that selling a Home during this time of year is especially challenging. That doesn’t mean it has to be impossible, as there are some tips for winter home selling people can do in order to increase their odds of securing an offer.

Keeping driveways and walkways clear ensures that real estate agents and potential buyers are able to get to a property. If they can’t get to a particular home, they will bypass it and head to another one instead. Those who cannot clear snow and ice themselves should consider hiring a professional service to help them with this.

Outdoor lighting should be bright enough to illuminate a home’s best features, while also making it safe to enter. Adding new lighting or replacing burned out bulbs can ensure the property’s best features are highlighted, and which guests feel comfortable coming and going.

The inside temperature of a home should feel nice and toasty. When people enter, they don’t want to feel cold, as this will make them wonder whether or not the heating system works efficiently. If a home is vacant, installing a programmable thermostat that is operable by smart phone will allow homeowners to turn the temperature up just before visitors arrive.

Just as in the summertime, everything inside the home needs to be clean, tidy and well-staged. Plastic mats near the doorway will contain snow and mud, thereby helping carpets to stay clean. The angle of the sun during winter also makes streaks and grime more noticeable, which is why washing windows inside and out is highly recommended.

Doing some little things to make a home seem warm and inviting will go a long way toward enticing buyers. Simple things, such as flameless candles burning on an end table or warm cider simmering on the stove, can make a house feel more welcoming. Homeowners may not want to burn a wood fire in their fireplaces if they are not home, but simply staging some fire logs in front of the fireplace could still lend a cozy feeling to the home.

Many market reports show that sellers have fewer homes to compete with during the winter. This means that those who follow these tips for winter home selling are likely to make a sale despite there being inclement weather.

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Home Buying and Selling During the Holiday Season

Thursday, December 12, 2013
by Tom Stachler,ABR,CDPE - Group One Realty Team

It doesn't take a Black Friday horde to tell you that the holidays are a busy time for merchandisers, retailers and shoppers. However, what you might not know about this festive time of year is that potential Home buyers who are looking now are serious about purchasing your home.

This is one of the reasons why you, as the seller, should be as flexible as you can during this time when it comes to showing your home. It stands to reason that the more flexible you are for showings, including short-notice appointments, the more chances you'll have of selling your home fast.

In addition, sellers show consider how many decorations are put up for this time of year. Decorations are nice and can make the home more inviting. However, too many decorations inside or outside the home can be distracting. Certainly be willing to garnish your home in holiday cheer, but it would be wise to keep it to a minimum.

On the other side of the coin, if you are a potential buyer searching for a home over the holidays, remember that sellers may not have the ability to be as flexible during these often hectic months due to travel plans, hosting commitments, or any number of other valid reasons. In a word, don’t be discouraged if a seller cannot accommodate a home showing on a moment’s notice.

Both buyers and sellers can capitalize on the increased sense of urgency that is typically ratcheted up over the holidays. This is especially true for homebuyers since the vast majority of each group would prefer to close on a home purchase or sale prior to the close of the year.

To best facilitate these transactions in a timely fashion, buyers and sellers alike would benefit from the knowledge and experience of a real estate agent.

 

Tom Stachler is a licensed Broker and Builder marketing homes and properties in the Ann Arbor and surrounding area including properties, houses, and condos for sale in Saline, Dexter, Chelsea, Milan and the Ypsilanti real estate markets.  Check out the handy Links for realty related information and and MLS inventory access above.  Please keep us in mind if we can help you or an associate with their real estate pursuits in 2019!
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Home Inspections

Monday, November 18, 2013
by Tom Stachler,ABR,CDPE - Group One Realty Team

As you navigate through the process of Buying a Home, you will find that one of the more critical components is the home inspection. To understand the value of home inspections, buyers and sellers should both be aware of what they do and do not include. While there may be some variation from state to state, home inspections typically do not look for asbestos, radon gas, lead paint, toxic mold, or pest control. If the buyer has concerns, professionals specifically licensed for each must address these issues. The focus of the typical inspection is three-fold: structural, mechanical and electrical condition of the house. The goal is not a complete laundry list of necessary repairs, nor an appraisal of worth. It is an unbiased evaluation of the home’s condition.

Step One

The process begins with a visual examination of the front of the home from a distance sufficient to view the entire exterior surface. Starting at the top and systematically moving down the wall, the inspector will review the roof, the chimney, gutters, fascia and soffits. Next, he will look at windows, doors, porches, decks and all of the structural details down to the ground. He will consider the grade or slope of the surrounding ground, inspect flowerbeds, walkways and driveways. Moving closer to the building, he will continue the home inspection by investigating details that caught his attention. Repeating the process with each wall, he will work his way around the house.

Step Two

Inside the house, he will continue the home inspection starting at the lowest level and moving up. The review starts with the floor, moves up the walls and across the ceiling. Then he will check each appliance in the room. He will open each door and inspect closets and storage areas before moving to the next room. He will look at floors, heating sources, electrical panels, outlets and switches. He will look for water damage including stains and sagging. He will check all plumbing fixtures and visible pipes.

Step Three

The home inspection will follow a checklist to insure that it is complete. Then the inspector will provide a formal report of his findings. It will then be up to the buyer to accept the property as it is, request repairs, request reduction of price to cover repairs, or decline the property. Your real estate agent will work with you to help you with your negotiation and decision.

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