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Selling Real Estate in Michigan

Selling real estate in Michigan has been fun! I've been doing it since 2006, and I have experienced both the ups and downs of the market. 

Usually no two deals are the same! I'm also very involved in my local board, my local MLS, my broker and the Women's Council of Realtors. These organizations all help to increase my knowledge as well as bring me opportunities to go and see new things and meet new people. I hope you enjoy my experiences and my opinions! Please fact check. I hope my stories send you a smile or an "ah-ha!"

Nov. 1, 2019

What Happens at a Real Estate Closing?

It's Closing Day!

If all the work has been done from contract to closing day, closing day should be a happy and exciting day!  In Michigan, closing day usually means that the buyer get the keys to their new home, the seller gets their proceeds' check from their sale, and the brokers get paid their commission!

Who has to be at Closing?

Everyone involved in the transaction should be attending the closing.  There are many documents at the closing that need to be signed and reviewed including mortgage documents, title documents and real estate documents.  Any seller who is on the deed, the mortgage, or representing the seller, needs to sign documents at closing.  The buyer who is going to be on the new deed and/or the mortgage needs to be at the closing to sign all of the buyer documents as well.  There is an escrow agent, who is a representative of the title company, that facilitates the closing.  The seller and buyer should have received the closing documents ahead of closing to review.  Feel free to ask any questions that you may have as to what you are signing.  Real Estate Agents and Mortgage Lenders do not have to attend the closing, but it is a great benefit in case questions come up in regards to the purchase/sale or the mortgage.  The closing agent is not privy to the negotiations of the transaction.  They only know the documents that are in the closing package.

What do I have to bring to Closing?

A Seller will have to bring a valid proof of identification.  They may also want to bring extra copies of the house keys, garage door openers, alarm codes, and general information about the home that the new buyer may need to know.  There also may be requirements for a certified death certificate or trust, probate, divorce information.  A Buyer will have to bring a valid form of identification, their portion of their proceeds in a cashier's/certified check or proof of wire transfer, and possibly proof of homeowner's insurance and proof of utility transfers.  Usually the title company will notify all parties of a "need's list" of items that are required to complete the closing.  Everyone is notified well ahead of closing.

Where does the Closing happen?

The closing is usually dictated by the seller and it occurs usually at the seller's title company's office or seller's real estate agent's office.  At times, closing can occur in a mutually agreed upon place where it's convenient for all parties.

How long does a Closing take place?

A mortgage closing usually takes about an hour if there are no issues.  All parties need to sign all the required documents, and the closing agent usually summarizes each page so that everyone has a general understanding of what they are signing.  At anytime, feel free to ask questions or take the time to read the documents again if you don't understand.  A cash closing usually takes about a half hour or less because there are less documents to sign.  With a mortgage, the closing agent usually has to wait for a "funding approval" from the buyer's lender.  When everything is complete, the seller will get a proceeds' check, the buyer will get the keys to their new home, and the real estate agents will get their broker's commissions!

There are always problems that can occur, but hopefully everyone has prepared for this day, and it will go smoothly!  Isn't that what everyone wants?  Share your closing experience below, and if you need help with your next real estate transaction, I'm only a phone call away!

 

 

Kelly Dix, Real Estate One, 586-899-6666 - Kellydixrealestate@gmail.com - www.kellydixrealtor.com

 

Posted in Buying A Home, Selling A Home
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July 29, 2019

Is A Final Walk Through Necessary?

Is A Final Walk Through Necessary?

A final walk through before closing is included in the purchase agreements that I write.  It basically states that as the buyer, you have an opportunity to "walk through" the property one more time before closing.  This is where you will want to double check that things are still in working order, and that the terms of the purchase agreement that you agreed upon are being adhered to.  Hopefully the seller should be completely moved out (or fairly close by then) when you do your final walk through the day before closing.  You will want to notice if the appliances for example are still there if that is what you negotiated.  Is the home still in the same condition as when you wrote your offer?  Are the mechanicals still in working order?  Are there any issues such as leaks, damage, etc?  If there are issues, you may want to bring these up before you become the new homeowner.

On the other end, you will want to make sure that the home is cleaned out of debris and all of the personal items that are not supposed to be left.  Our purchase agreements state that the seller should be leaving the home in "broom clean" condition.  There should not be trash laying around, paint cans or rubbish that they cannot get rid of themselves.  Sometimes it is acceptable to have some full garbage cans that were not able to be put out on the last garbage day.  Otherwise, all of their items should be out by closing, unless the seller is getting occupancy.  When the closing documents are signed, I say to my clients that you now own the home.  I also highly recommend against the seller leaving items to be picked up after closing.  Sometimes they can't get everything out in time and want to leave items in the garage for example to pick up later.  Even though everything might be ok, there is a chance for something to happen.  What if the seller leaves it longer than what they said?  What if the seller claims that you damaged or stole something?  What if there was a flood or a fire by chance, and their items got ruined?  It's best to have all ties cut at the closing time.

If you are giving the seller occupancy after closing, I still recommend doing a final walk through beforehand.  Some agents forego this, but I always recommend it.  When you sign the papers at closing, you own the house.  You are still taking the chance of something being wrong that you didn't know about, and sometimes it can be too late to do anything about it.  Even though the seller has their furniture and items still in the home, I believe you should still walk through.  You can judge if the home is still ok.  Granted, during the occupancy stage something could still go wrong, but if it was an item that could've been corrected before closing, you might have had a better chance of resolving the issue then.  If something does occur during occupancy, the issues would have to be resolved before a key exchange and a release of escrow is signed.  This is done at the end of the occupancy period stating that the buyer is ok with the condition of the house at the key exchange date.  I always recommend too that this key exchange takes place at the property.  As a buyer, you want to walk through the home and make sure that the home is still in good condition.  If there are issues, I would reconsider signing the key exchange form releasing any escrow funds.  I've never had any issues with problems occurring during the occupancy period, but they can happen.  What happens if the furnace or air conditioner breaks???  Everyone should be clear at closing who is responsible if something happens during the occupancy period.

Lots to consider when buying a home.  This is just another reason why having an agent to guide you is a good idea!

Let me know if I can help with your home buying and/or home selling in Southeastern Michigan!

Kelly Dix

 

Posted in Buying A Home, Selling A Home
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July 15, 2019

Offer Accepted! - How Long Do I Have to Move?

Yay!  You finally received an offer on your home that's for sale!  Now the process begins.   Home inspection, appraisal, packing, sleepless nights, moving, repairs etc.  The real question is... How much time do I have?  This all depends on your purchase agreement, and what was agreed upon.

In the purchase agreements that I am used to using, an estimated closing date is put in there.  It can say to close "on" that date, "on or before" that date, or it could be a range of dates.  This is a targeted date that buyer and seller are aware of, agents are aware of, title company is aware of and mortgage lender is aware of, if there is one.  Hopefully everyone is working towards that date.  If there is a mortgage from the buyer that everyone is waiting on the approval of, that could take 20-60 days, depending on what type of mortgage the buyer is doing and how quickly the buyer responds to the needs of the lender.  The lender will request documents, signatures, access to many things during the process after an offer is accepted.  If the buyer is not quick to respond, this can delay the closing.   When the loan is approved, a closing can be set that everyone is agreeable with.  Sometimes an extension to the closing date is requested to be done if the closing cannot occur on the estimated date.  This does not have to be done, so it is very important that everyone tries to meet the goal of the close by date/dates on the purchase agreement.

On the seller side, title is being checked and any discrepancies need to be resolved to hand over clear title to the new owner.  Divorce degrees, death certificates, trusts will need to be reviewed during this time as well.

If occupancy is agreed upon, everyone is aware of how many days "after" closing a seller has to still occupy the home.  In most instances, a seller in a sense is renting the home from the new owner (the buyer).  Sometimes a seller (the new renter) does leave before the agreed upon occupancy time frame and the new owner (the buyer) can move into the home sooner.  While this may be the case, I always suggest to plan on the occupancy date that is agreed upon, so you are not discouraged if the seller (the new renter) has to occupy the home for the full agreed upon time period.

If you did not agree to occupancy after closing, a seller needs to be out of the home at closing.  Sometimes sellers will ask if they can leave items behind, in the garage for example, and come back to pick them up after closing.  I always suggest that this does not happen.  In reality, the new buyers become the homeowners at closing.  They own the home and everything that is there.  Even though everyone agrees, you could really be trespassing on their home!  What if your personal property gets damaged or stolen before you pick it up?  What if they change their mind about giving you access?  Maybe these things won't happen, but I say best to have ALL of your things out at closing.  They don't want your things there really either.  They have all of their own stuff to bring in!  On the other hand, I have also experienced buyers wanting to start storing their items before closing.  I also suggest again this as well.  The items could be damaged, stolen or worse yet, the closing could never happen!  Then what happens to your things??

The bottom line is, everyone is hopefully trying to reach the end result of the home being sold.  Patience really needs to come into play here.  Buying and selling a home is a top stressor in a person's life, but hopefully the end result does happen.  When listing your home for sale, you should already have purged, planned to purge, or have packed/stored your items from your home.  When buying a home, have another option available if you are not able to move in by the projected "close by" date.  If everyone stays flexible and has a "back up plan" things will hopefully go a lot smoother!

One consolation is that you are not the only person that has ever gone through this.  People buy and sell homes everyday!  Happy Selling!  

If you need a REALTOR in the Southeastern Michigan area, I would happy to help!

Kelly Dix, REALTOR, 586-899-6666 Kellydixrealestate@gmail.com

 

Posted in Buying A Home, Selling A Home
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June 24, 2019

Do You Have a Secret Quit Claim Deed?

Do You Have a Secret Quit Claim Deed?

Some people will try to avoid Probate Court by drawing up a Quit Claim Deed on their property and sock it in a drawer or safety deposit box until the time comes to file it at the county.  You may have other options available.  

I have heard some recent horror stories that has brought about the reason for my post.  A Quit Claim Deed may still be the right option for you and maybe not.  The best plan of action is to have this discussion with your estate planning attorney.

You may never have an issue, but I'm going to share 2 situations that I have recently heard about.  

A Quit Claim Deed was stored away and brought to existence after someone's death.  A Probate Court case still needed to be opened because the deed was not valid when it was filed.  In 2 instances this had happened.  One of the reasons was that the signature for the notary was unreadable, and the other was that the deed was not signed properly.  Now of course it is too late to modify the Quit Claim Deed because the owner is now deceased.

Another story that I came across was that a person who was living in the home had to go to a nursing home.  The children then needed to sell the home.  They actually filed the Quit Claim Deed that was drawn up 5 years ago for convenience of selling the home, and the City decided to change the homestead on the property to non-homestead from the date that the Quit Claim Deed was written.  The City was requiring the children to now pay the back taxes (5 years worth) at the non-homestead rate and all late penalties and fines!  They were trying to avoid the owner from claiming the property as an asset, but now it has cost them some money in the sale in regards to the taxes owed.

Best advice is to talk with an estate planning attorney for the best option for your situation.  Trusts, Lady Bird Deeds, Powers of Attorney, Guardianship, Conservatorship as well as Quit Claim Deeds can be topics of discussion.

Planning Ahead is the Best Plan!  If you are looking to buy or sell in or near the Macomb County area, I'd be happy to help!   Kelly Dix, Real Estate One, Michigan

 

Posted in Selling A Home
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June 13, 2019

It's Closing Day! What Does That Mean?

It's Closing Day! - What Does That Mean?

These are answers to a typical Michigan closing in my experience.  Of course there are always variances.  Always check with your title agent and/or your real estate agent so that you are properly prepared!

1.  Who needs to be at closing?

Answer: Whomever is selling or buying the house needs to be there to sign the documents.  Anyone on the deed needs to be there.  Other options are personal representatives and someone that has a power of attorney.  You may also have the option of pre-signing the closing documents.  Be aware that some of them will require the signatures to be notarized.  (If this is an option that you need to utilize, make sure that the closing agent is aware that you will be pre-signing ahead of time).  All documents are prepared financially to close on that date.  Interest, taxes, and other items are considered by the date of closing.  If it doesn't happen when scheduled, it will need to be rescheduled, and all of the documents may need to be recalculated and reprinted.

2.  Where does the closing take place?

Answer:  The closing will normally take place at the title company or real estate office.  These areas are most convenient because there is plenty of room to allow for many people in a room and access to space to allow for signing of many documents.  Also, typically there needs to be access to a copy machine to have copies for all parties involved.  Some closing agents will offer electronic files of your closing documents if that is better for you.

3.  How long does the closing last?

Answer:  A typical mortgage closing will take approximately a hour.  A closing can be delayed if the signing parties are late, if there are problems with the closing documents, and/or if the wire has not been received from either the buyer's lender, the buyer's contributions or the seller's contributions, if that is the case.  There has also been issues at closing resulting from problems discovered during the final walk through before closing.  Sometimes these items can delay or even kill the purchase completely.

If the purchaser is buying with cash, a typical cash closing takes about a half hour or less.  The purchaser does not need to sign any mortgage documents at closing.

Sometimes a closing can close in escrow until a delay can get resolved.  This usually happens when either the money or documents have not been received.  Not always an option though.  Nothing is official until the documents are all signed, the keys are transferred and the closing agent says, "congratulations on your new home!"

4.  What do I need to bring to closing?

Answer:  You definitely need to bring a valid photo identification.  It cannot be expired.  This may delay your closing.  You may also need to bring some supporting documents for example; original copy of a death certificate, original certificate of trust, repair receipts, final water bill, green card, etc.  You should know this way ahead of closing day so that you are not surprised with having to bring these items.  Your title company/real estate agent should be informing you in plenty of time.  If you are ever unsure, just ask.

5.  What am I signing at closing?

Answer:  Prior to closing, you should receive a copy of all the documents that you will be signing at closing.  Ask your questions prior to closing if you don't understand anything.  Your closing representative will most likely be summarizing each document that you are signing.  Your real estate agent should be able to help at closing too if they are in attendance.  Hopefully you are prepared before closing day.  You will be signing title documents, real estate documents and mortgage documents if you are getting a loan.  Being prepared will help your closing day go smoother.

6.  Do I own the home at closing?

Answer:  If all of the documents are signed at closing, and all of the funds needed for the sale are in, you should be the proud owner of your new home!

7.  Do I get the keys at closing?

Answer:  This all depends on your purchase agreement.  If you agreed to get occupancy at closing, you should get the keys at closing.  If you've agreed to offer occupancy to the sellers after closing, make sure that you understand how long that is, and what happens from closing until then.  So many things can happen in that time period.  If there are issues, you may have to consult an attorney to resolve them.

8.  Do we have to close on the closing date in our purchase agreement?

Answer:  This answer depends on your purchase agreement.  It says exactly if you need to close on that day, during a date period, or even before that date if everyone is ready to close.  Your purchase agreement is actually a contract, so the terms of your contract should be adhered to.  I have seen an addendum drawn up to extend the closing date if it is needed and if all parties agree to it.  

HAPPY CLOSING DAY!!!

 

 

 

Posted in Buying A Home, Selling A Home
no comments yet
June 6, 2019

Video and Audio Surveillance when Selling/Buying a Home

Video & Audio Surveillance & Selling/Buying a Home

With the popularity and ease of access to home surveillance and security systems, it's a good idea to know about your rights as a seller and a buyer when selling or buying a home.  I've included a link from the National Association of REALTORS that touches upon this topic.  As a seller, do you need to disclose that you are recording potential buyers as they walk through your home on showings or open houses?  As a buyer, are you aware that the things that you are saying are possibly being recorded as you walk through the home or even from the driveway as you get out of your car? The laws are governed by each State.

Surveillance video and recordings are becoming more popular with security systems, doorbells and Google Home and Amazon devices.  As a seller, you may want to inquire if you need to disclose that you are recording your visitors and using these features when selling your home.  You may have to disclosure this with a notice in your home or on your listing ticket.  As a buyer, you may want to just presume that you are being recorded, even if you don't see any recording devices or notices.  You may want to refrain from talking about your financial disposition or issues regarding the home that could hurt your negotiations if you want to write an offer.   

Check out this video from the National Association of REALTORS

This currently is a hot topic being discussed in the Michigan Legislature.  If you are in violation, you could be subject to fines and jail time under the current state laws.  Make sure that you are aware of what you can and cannot do during your home selling process.

Looking to buy or sell in the Macomb County Michigan area? I'd be happy to help!

Kelly Dix, REALTOR - Michigan www.homessellwithkell.com

 

Posted in Buying A Home, Hot Topic, Selling A Home
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March 21, 2019

5 Basic Steps to Follow When Buying Your Home

5 Basic Steps to Follow When Buying Your Home

1. Decide How You Are Going to Pay For It.   If you are paying cash for your home, you will need to make sure that your funds will be liquid in time for the closing date.  If your money is tied up in a retirement account or in a settlement, you will need to make sure that the funds will be accessible in time.  If you are paying with a mortgage, you will need to talk with a mortgage lender, or your bank, to see if you qualify for a loan and what kind.  Your income, employment history and credit will have to be verified.  You also will need to know what your down payment will be and your closing costs.  There are also other out of pocket expenses such as private home inspection, appraisal and home owner's insurance.  You will also want to know your potential monthly mortgage payment and be comfortable with that.  Is it manageable with your current lifestyle?  You don't want to lose your home to foreclosure right after buying it.

2. Decide Where You Want to Live.  There are things to think about when choosing your location.  Is the distance from your work, the school system for your children, the closeness to other family members (or not haha!) things that need to be considered?  You may also want to research the crime in the area by talking with the local police department and the neighbors. The neighbors are usually more than willing to share the neighborhood gossip!  It's also a good option to drive the area at different times of the day and week if possible.  If you fail to consider these things in the beginning, you may be unhappy when you move into your new home.  Do your homework ahead of time.

3.  Decide What Type of Home You Want.  You should have your wish list of must haves as well as some items that you are willing to negotiate on.  Sometimes having too many restrictions will limit your search while looking for a home.  Working with a real estate agent and/or traveling to open houses should also help in your search.  Some buyers believe that working with the seller's agent will benefit them.  The listing agent signs a contract with the seller to work on their behalf.  They can't work in the buyer's best interest as well.  You may be hurting yourself.

4.  Time Is Of The Essence.  If you find a home that you like, don't hesitate!  Someone else may be interested too!  If someone can't decide on writing an offer, I ask, "If someone else bought this home, and you couldn't get it, would you be disappointed?"  If the answer is yes, then you better write an offer!  You can always do your due diligence with your research during your inspection period!  The goal is to get your offer accepted first!

5.  Pack Your Patience.  Plan on having some snags along the way.  Nothing is final until everything is signed, and the closer says, "congratulations on your home purchase!"  There are many things that are really out of your control that will take place from the accepted offer to the closing table.  The best advice is to just stay in constant communication with your lender, your real estate agent and anyone else that is working with your transaction.  Everyone involved generally wants to get to the closing table as well!  Buying a home is one of life's top stresses, but it can be so worth it in the long run!  Good luck!

 

Posted in Buying A Home, Financing A Home
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March 19, 2019

Showing Feedback

 

Why Don't Agents Leave Feedback After A Showing?

Giving feedback after showing a home for sale is an interesting topic of conversation.  Also, there are a lot of opinions on each side.  When an agent lists a property for sale, they inform their client that agents showing the home should give feedback afterwards to say what their client felt about the home; but they don't always do it.

I've heard many showing agents say, "If we liked the home, you would've received an offer from us."  Well, feedback is just not if they liked the home or even if they are writing an offer on it.  I think that's just an excuse not to do it.  It's just courteous that you acknowledge that you've shown the home, and it's also helpful with some comments for the homeowners as well as the agent.

The homeowners spend a lot of time getting their home ready to show.  They disrupt their family schedule to accommodate the potential buyer and their agent in order to leave the home during the showing scheduled time.

If there are a few showings scheduled, sometimes they have to be gone from their home for a few hours.  I feel that the least a showing agent could do is leave some type of comment after the showing.  Sometimes the potential buyer says things while they are looking around; "too small", "too smelly", "we don't like the neighbors" etc.  This is possibly the comments that you can leave.  The homeowner always asks; "what did they say?", "are they interested?", "is there anything I can change to help it sell?"  Sometimes the homeowners can do nothing about your feedback, but at least give them that option.

Some agents believe that giving feedback will hurt negotiations.  I don't think so.  Buyers and sellers will only negotiate to where they feel comfortable.  The feedback doesn't even have to be long.  It can be really something simple.  It might even be something that the homeowner is willing to take care of or offer to drop the price for.  You would never know that if you don't offer what your clients are thinking.

Also, why do agents ask for feedback if they didn't feel is was important?  I wonder if the agents that don't give showing feedback look for it on their own listings?   It's embarrassing to say to a client, "I'm going to ask for feedback, but sometimes agents in my profession feel that it's not necessary to give feedback after you allow them into your home".  There really is no excuse to not leave the feedback.  Everything is all automated now a days to make it easy.  It only takes a few minutes.

If you as a showing agent are showing multiple properties, it's simple to just write a few notes on your showing ticket as you are walking through the home.  If your clients have no comments, it's just as helpful if you leave one from yourself.  All the nay-sayer are right that you don't have to leave it.  It is just courteous if you do.  Sometimes as a listing agent, it's good to get other support from your fellow agents with comments that you have been saying to your clients all along.  Let's work together!  Just my opinion~ What do you think?

 

 

Posted in Buying A Home, Selling A Home
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