Posted in Buying Homes, Credit Score, Home Buyers, home ownership, Midland Saginaw Real Estate, real estate, Real Estate Bay Midland Saginaw, Uncategorized

Don’t Get Sidelined by Your Credit!

You can’t have good credit unless you have debt. Sound like an oxymoron? It always has to me, but nevertheless it is a fact.  As a Realtor, I am often in the position of raising awareness about repairing credit and even the importance of how the system works and what your current score is.

I can’t tell you how many times I’ve had people who have a 20% down payment on hand (in their mattress) but have no credit and are shocked when they can’t get a mortgage. Then there are those who have 15 different credit cards, bankruptcies,  or repossessions, who are also amazed when they have their credit pulled and find it is rated poorly and they’re unable to secure a mortgage.

You should always know your credit score. Not only does it give you a sense of accomplishment when you see it go higher, but it will also alert you if something is happening that you’re not aware of, such as identity theft or erroneous reporting.  There are various companies online that will allow you to check your score and some credit card companies also offer it.

Just be sure you’re looking at your FICO score; as this is what the majority of lenders/creditors will be looking at.  FICO stands for Fair Isaac Corporation which created the system back in 1960.  In order to even have a FICO score, you have to have an account of some type, whether revolving (credit card)  or a set monthly installment (car loan) and it needs to have been reported to the credit bureau for at least six months.

People are often under the impression that paying off a card is a good way to raise your credit score – – Nope! Or that they should close an account to raise it – – No Sir! Paying down a credit card and maintaining it to around a 30% balance will raise your score more than paying it off. Also, the longer an account is open, the longer your history is and that is also advantageous.

It does not have to be a mystery. Keep in mind these simple steps:

  1. Paying your credit accounts on time has the more significant impact on your credit score.
  2. Don’t use more than 30% of your available credit on any one card – if you do, be sure to pay it down to that 30% at the end of that billing month.
  3. Don’t close out all your old accounts. Having an account open for a long period of time scores you credit score benefits.
  4. Use more than one type of credit, combining installment and revolving. Be sure you don’t get carried away. If you can’t pay it off in 30 days (revolving) you probably shouldn’t purchase it.

Most lenders require a credit score of 640 in order to purchase a home; though there are a few who have programs for scores less than that. It is pretty amazing though, because at 640 you’re only in the “Poor” rating for credit.  If you want to secure a lower interest rate on a home, increasing your credit score is a great way to do that.

A simple way to look at it is this: Bad = 550 & below/ Poor 550-649/ Fair 650-699/ Good 700-749/Excellent 750+

If you have questions about mortgages and/or credit scores, please feel free to contact me. I work with some great lenders who are willing to help you raise that credit score and create a plan specifically for you. Purchasing a house is a great investment. Don’t get sidelined because of a surprise or non-existent credit score.

 

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Posted in bay city, Bay City Michigan, Buying Homes, community, Finding a great Realtor, goal setting, Home Buyers, Home Selling Tips, midland, Midland Michigan, Midland Saginaw Real Estate, real estate, Real Estate Bay Midland Saginaw, Real Estate Market Statistics, Realtor, saginaw, Selling Homes, Selling Your Home, Tips for selling your home faster, Uncategorized

Less Sales – Higher Prices for Saginaw County

Based on number of transactions, March 2017 fell short in Saginaw County home sales when compared to a very robust March of last year, and even behind the 5 year March average. Don’t despair! If you are a buyer or seller there is still good news.

Despite the lower number of sales, Saginaw’s 12 month average sales price ending in March 2017 was at $104,314. This is up 3.33% over last year at the same time. I remember back in 2008 when the average home sale was at a whopping $64,143 – so we’ve made a lot of progress getting back to the “Pre-crash” price in 2005 and the average was just over $107,000.

Lots of numbers. What does it mean? Well, we can’t really formulate a trend from the low March sales. I’ll be keeping an eye on it to see if it was a statistical anomaly for the month. A slow March in essence is really a slowdown of activity in January. The plus side is the increase in home values for our various communities. That’s good news for sellers.  This in turn, realistically is also good for buyers.  Why? Well, all year we’ve seen low inventory of good homes.  As word spreads that home prices are continuing to rise, more sellers are likely to get their homes on the market. This gives a buyer more choices, which also gives them more leverage when making an offer.

The March trend was different for Bay and Midland Counties, despite how closely tied our Mid-Michigan communities are.  Bay County saw 25% more transactions this March over last year which is great; however the average sales price rose less than 1%.  Midland also saw about a 20% increase in number of transactions over last March plus had a 6.13% increase in values.

Quarterly reports should be out soon and that will perhaps give a little more insight as to whether March was a trend or an anomaly. Always good to keep in touch with the heartbeat of your community.  If you would like to know more specific information for your area, please feel free to call or email me. If you’d like to receive a free home market analysis – I’d love to hear from you.

~Build a better world by building a better you

  • Monique Gilbert – Your Real Estate Matchmaker – Connecting Buyers & Sellers for a Perfect Match
Posted in bay city, Bay City Michigan, Buying Homes, community, Finding a great Realtor, Home Buyers, midland, Midland Michigan, Midland Saginaw Real Estate, real estate, Real Estate Bay Midland Saginaw, Realtor, saginaw, Uncategorized

Is Real Estate Investing For You?

Recently Saginaw was deemed the 2nd Best Housing Market in the United States. I know that seems to be contrary to what most people think when they ponder the state of Saginaw, with its loss of population and manufacturing jobs over the past decade.  There were a lot of factors that went into the study which gave us this infamous title. Though many of the factors are good things for us; higher number of residential sales in 2016 than any other in 10 years, average sales price climbing, etc – there’s more to it than that; and it and of itself could be a series of articles. But my point today is with the current changes in our market, could real estate investing be a good avenue for you?

If you are active in the stock market you are well aware of the volatility over the past years. If you’re toward the end of your working age, or recently retired – you may have had to make drastic changes to your retirement plans due to extensive losses.  What do you consider a good Return On Investment? (ROI) Many in the stock market are averaging 5-8%. You might be thrilled at a higher amount.

What if you purchased a home for $25,000 and put in $3,000 of repairs and rented it for $650-$800/month? Taking out taxes and insurance, even on a $650/month home, your income would be about $5,500. That in one year would be an APR ROI of almost 20%. Granted, you will occasionally need to do maintenance, perhaps pay a fee to a property management company. I would always suggest that for the first year, all of your rental income be kept in a designated savings account for future maintenance issues, as well as a good 10-15% each year.

With this income of 19.6%ROI annually, you would have a steady income and when the day came you wanted to sell, history tells us that you should get at least 100% of your original investment back as well. Why isn’t everyone doing this? Well, a lot of people are. I don’t have any stats about the percent of homes being purchased in Saginaw by out of area investors but I know it is much higher than any other time in the past ten years.

Let me be very clear that being a landlord, even if you hire a property management company, is not risk free.  You need to do a great job in selecting tenants (or the PM co. does) You need to be sure you’re setting those maintenance funds aside. There will be tenants who do crazy things and cost you money.

You may decide the risk for damages would be less if you were dealing with more expensive rentals. For example I recently had a client who purchased a home for $60,000 in the Township and then rented it for $1300/month.  That’s an awesome ROI, but a higher initial investment. You have to do what you think is best. And that might be nothing at all! But I believe it bears thinking about.

If you think investing might be worth looking into, feel free to call or email me. We have a great property management division here at Berkshire Hathaway too. If you want some honest advice I would be happy to sit down with you.

 

Posted in bay city, Bay City Michigan, Best Time to Sell, Buying Homes, community, Finding a great Realtor, Home Buyers, midland, Midland Michigan, Midland Saginaw Real Estate, real estate, Real Estate Bay Midland Saginaw, Realtor, saginaw, Selling Homes

…Giving Your Character That Ravishing Red…

Dear Friends:

Fall has been beautiful thus far and soon the festivities of Thanksgiving shall begin. We shall see gourds, pumpkins, shocks of corn, cornucopias, and turkeys galore. Though I personally am not much looking forward to the wintry mix that is sure to soon follow; Thanksgiving is definitely my favorite day of the year.

It is a time I am able to take just a very short break and surround myself with family, my extended family. All five of my siblings, their children, and grandchildren gather at my parents for a day or two of full tabletops, glorious wafting smells arising from the oven, mixed with laughter of children and adults alike. We have pillow fights, card games, leaf wars, football, and more.  I am blessed to have a family who loves to share these types of days together. I am blessed also that we have a wonderful home to gather in and enough in the bank to put whatever we’d like in the oven and on that table.

I encourage you, even if you aren’t a Thanksgiving Day “celebrator”, to take this opportunity to inventory those things in which you can be thankful.  As we watch the leaves turn from their bright greens to ravishing reds, glorious golds, and soft yellows we can turn our thoughts to the changes in our own lives from the past year. Maybe it wasn’t an easy year – those struggles leaving you stronger in the end, giving your character that ravishing red. Maybe there were wonderful celebrations providing you with glorious golden memories, and those little moments to cherish like the soft yellow leaves twirling down in the fall winds.  Whatever has transpired this year; we all have things to be thankful for.

“Gratitude can transform common days into thanksgivings, turn routine jobs into joy, & change ordinary opportunities into blessings” – William Arthur Ward

Blessings to you and yours,

Monique Gilbert

Posted in Best Time to Sell, Buying Homes, community, Home Buyers, home ownership, Home Selling Tips, real estate, Real Estate Market Statistics, Realtor, saginaw, Selling Homes, Selling Your Home, Tips for selling your home faster

It Is NOT Too Late!

Spring, spring! It’s gotta be Spring or it’s too late! That’s what sellers often think of in regard to home sales. Reality says, it isn’t so. Sure, the highest peak months might be May and June, but looking at the graphs you will most likely be surprised that the only two really low months for closed sales are January and February.

Sales in Saginaw & Midland Counties are up in general this year (yay!) Looking at the graphic below; you can see two things. First you’ll see the difference between the 5 year average and 2016.  Most importantly if you’re thinking of selling, you will see there is not a huge drop-off. Homes are being sold EVERY month.

There is always a market for good inventory.  I would love to give you a free market analysis on your home if you’re thinking of selling or be your buyer agent for those of you looking for that new home of your dreams. Call me today! 989-475-2958!

Graph

Posted in Home Buyers

HOUSES ARE LIKE SPOUSES! Great Info For Buyers

They cost as much – can be cold and drafty – potential to take away your paycheck! Oh my, this is not what I was thinking when I posted that I would be writing an article with the title Houses Are Like Spouses; but those were some of my followers lines! Lol……

Here’s what I was thinking: Have you heard that line before, “There’s no one perfect spouse”? This is the direction I was headed. Stay with me here. You see, I love working with buyers. For the most part they are super fun and it is so exciting when they find “The one”. But in reality, I don’t think there is any “one” perfect home, as there isn’t necessarily a perfect spouse. No house is perfect, neither is any person. Though, as they say – there might be one perfect for you. Or at least one that you can work on where the end result is indeed the perfect match. 🙂

When I begin working with a buyer, I ask them to get me a Wish List. Write down some major and most important factors you are looking for in a home; just like your mom told you to do when you were looking for that special person in your life. There are a lot of things you can like &/or dislike in a home. Some are deal breakers, others are fixable, changeable, or just not that important. Decide what is the most important aspect in a home for you. It will be different for everyone. Maybe location is most the highest on the list for you. Maybe it needs to be a 1 story, have a main floor master, or you just have to have a pole barn. What is it? Narrow it down. Make sure you are aware of the items that are deal-breakers & those that are “Gee that would be nice”.

The reason is because most likely there won’t be one home that has it all. But, there may be several that have everything except one or two things. I rehab a lot of homes. Buy them, fix em, and re-sell. I have come to look for the possibility in homes. Maybe I found the perfect location but I understand most people want a master suite and this home doesn’t have it. I just closed on one of those last week. Voila, for under $5,000 I am making a master suite and have added another half bath off the kitchen to make a 2 1/2 bath home, that was originally a 2 bath and it will soon have that ever sought after master suite with walk-in closet and bath. Things aren’t always that expensive. Most things can be done. Would it have been economical for me to have purchased a home that I would have had to actually put an addition on? Nope, absolutely not. But this one worked perfectly for me.  At my personal home though, I’m considering an addition; one that will make my home just the way I want, and it is focused on things I know the return on investment is high.

Here are some main things you should consider when buying a home: location, setting, style (ranch, 2 story), # BR’s & BTH, basement, attached garage, pole barn, acreage, and of course price. What is important to you? When we look for that perfect person, we may have to teach them to kiss – our way! Or to put the toilet paper roll front ways. These are trainable and changeable things. Just like there are things in a house that we can do to make it a home, OUR home. Don’t miss out on something that could be just perfect for you!!