Deborah Johnson’s Blog

Every Thursday morning, I wake up bright-eyed and bushy tailed at 5:30 a.m.  Well, maybe more like cross-eyed and bushy haired.  I do, however, get up very early in anticipation of what my weekly networking meeting will bring. 

I belong to a BNI (Business Network International) chapter in Farmington Hills.  We have grown to approximately 20 + members consisting of one person per professions such as a mortgage lender, insurance providers, dentist, chiropractor to name a few.  My goal was to build relationships with this fine group of professionals in order to become a one-stop shopping experience for home buyers and sellers. 

When a homebuyer first meets with me, it is important that I am able to refer them to a mortgage lender, an insurance provider, a home inspector, a title company, a mover, etc.  This is especially important if someone is relocating to the area.  They are unfamiliar with local businesses and will ask me for a dentist, daycare provider, local banker, and more. 

I have built relationships with people within my chapter which enables me to feel confident when I pass along their business card.  This is definitely a matter of convenience for my clients which helps strengthen my long-term relationships with them.

If you are a business professional within close proximity to the Farmington Hills area, contact me to find out how you can apply for a position within my chapter.  

 About The Author Deborah Johnson is an Associate Broker at RE/MAX New Trend, a Farmington Hills Real Estate Brokerage business. Deborah utilizes her 12 years of Farmington Hills Real Estate experience in order to help clients with investment opportunities. She contributes to a daily Web Blog which focuses on the Oakland County Real Estate Market, as well as other topics important to Farmington Hills, MI and Southeast Oakland County. For more information on Deborah, please visit her real estate website at www.visitdeborah.com or via email: djohnson@realtor.com or (313) 719-5838

Sales of bank-owned homes are definitely picking up in Farmington Hills.  I am experiencing that each bank-owned home I show is selling very quickly if it needs minor cosmetic work and is priced well.  The offers I am presenting are asking for my client’s “highest and best offer”.  On average there are at least 10+ offers on the property within 2-3 days of coming on the market. 

Buyers need to be educated that if they are looking for a bank-owned home that is not in need of extensive repairs, you can expect to pay full price or higher for the property.  They also must be prepared to get out and look as soon as the home becomes available to view.  If I find a home that has been on the market a few weeks or longer, typically it is in need of repairs that the average buyer cannot take on.  Since the majority of buyers looking right now are first-time, they have little savings to get in and are in need of assistance with closing costs.

This is also a great opportunity for investors to purchase a home as a rental property.  There are many people looking to rent due to the fact that they have lost their home to foreclosure or cannot qualify for a mortgage.  You can find bank-owned properties for some great prices allowing you to collect rent at a profit.

If you are interested in purchasing foreclosure /bank-owned homes in Farmington Hills and surrounding areas, contact me today.  I would be happy to provide you with a list of foreclosures within your price range.

About The Author Deborah Johnson is an Associate Broker at RE/MAX New Trend, a Farmington Hills Real Estate Brokerage business. Deborah utilizes her 12 years of Farmington Hills Real Estate experience in order to help clients with investment opportunities. She contributes to a daily Web Blog which focuses on the Oakland County Real Estate Market, as well as other topics important to Farmington Hills, MI and Southeast Oakland County. For more information on Deborah, please visit her real estate website at www.visitdeborah.com or via email: djohnson@realtor.com or (313) 719-5838

What is a Short Sale?

A short sale is a discount on the outstanding mortgage balance by the lender or lenders to allow the property to sell.  The mortgage balance exceeds what comparable properties are selling for. 

In today’s market, values have depreciated greatly.  The average homeowner is competing with bank-owned homes which are priced at incredibly low prices to sell quickly.  If you are facing hardship and can no longer afford your mortgage payments, a short sale may be your only option.  This allows you to price your home competitively to obtain a quick sale. 

The advantage of selling this way is that you can attempt to salvage your credit.  A foreclosure remains on your credit report for up to 10 years adversely affecting your score.  A short sale may be far less damaging.

If you are considering selling, contact a real estate professional who has experience and success with selling short sales.  Your time is limited, since the foreclosure process continues while you are attempting to sell your home.

Contact me today for a confidential consultation.

Servicing Farmington Hills, Novi, West Bloomfield and surrounding communities.

 About The Author Deborah Johnson is an Associate Broker at RE/MAX New Trend, a Farmington Hills Real Estate Brokerage business. Deborah utilizes her 13 years of Farmington Hills Real Estate experience in order to help clients with investment opportunities. She contributes to a daily Web Blog which focuses on the Oakland County Real Estate Market, as well as other topics important to Farmington Hills, MI and Southeast Oakland County. For more information on Deborah, please visit her real estate website at www.visitdeborah.com or via email: djohnson@realtor.com or (313) 719-5838

If you are a first-time buyer, this is an incredible time to purchase a home.  Effective January 1, 2009, American Recovery and Reinvestment Act of 2009 increased the amount of the tax credit to 10% of the purchase price up to $8,000. 

Here are some facts to consider:

• You must close on the purchase of your home on or before November 30, 2009
• You can ammend your 2008 taxes after you close and receive your tax credit
• Must be your principle residence and continue as your principle residence for 36 months after closing
• Must not have owned a principle residence in last 36 months
• There are income limits for purchaser to qualify 

You are advised to seek the advise of a tax professional to determine if you qualify for this credit. 

For additional information, you may also visit the IRS website.

Time is running out.  If you would like to take advantage of this tax credit, contact me today.  We can begin the home buying process to ensure that you close before the deadline. 

About The Author Deborah Johnson is an Associate Broker at RE/MAX New Trend, a Farmington Hills Real Estate Brokerage business. Deborah utilizes her 12 years of Farmington Hills Real Estate experience in order to help clients with investment opportunities. She contributes to a daily Web Blog which focuses on the Oakland County Real Estate Market, as well as other topics important to Farmington Hills, MI and Southeast Oakland County. For more information on Deborah, please visit her real estate website at www.visitdeborah.com or via email: djohnson@realtor.com or (313) 719-5838

I remember good times as a child when my father would take my sisters and me to do whatever was his whim.  It varied from iceskating, tobagganing,  swimming at the YWCA to a road trip to King’s Island Amusement Park.  My dad was an adventurous one.  He loved riding dirt bikes, snowmobiles, tubing on the lake up north and shooting off fireworks into the dark sky. 

I think about how much impact your father has on your life.  Whether he was a part of it while you grew up or not, he influenced you in ways you were unaware of. 

Hopefully, your father is still with you to celebrate him on this day.  

Happy Father’s Day to all of the great dads who are and ever were!

About The Author Deborah Johnson is an Associate Broker at REMERICA United Realty, a Novi Real Estate Brokerage business. Deborah utilizes her 13 years of Farmington Hills Real Estate experience in order to help clients with investment opportunities. She contributes to a daily Web Blog which focuses on the Oakland County Real Estate Market, as well as other topics important to Southeast Oakland County. For more information on Deborah, please visit her real estate website at www.visitdeborah.com or via email: djohnson@realtor.com or (313) 719-5838

Are you short on funds for your down payment and closing costs?   

There is a program available for low to moderate income purchasers through MSHDA (Michigan State Housing Development Authority).  This program allows you to borrow up to $7,500 towards your down payment and closing costs at zero interest.   There are no monthly payments on the $7,500.  The balance is paid in full when you sell your home or refinance.

A few guidelines:

• There are limits on your income and the purchase price.
• You must complete a homebuyer education class. 
• You must contribute at least 1% of the sales price.

If you are interested in learning more about this program, visit:

MSHDA: Down payment assistance simple facts  

MSHDA: Policies and procedures

For assistance with purchasing your home and finding a lender who participates with MSHDA, contact Deborah today!

About The Author Deborah Johnson is an Associate Broker at RE/MAX New Trend, a Farmington Hills Real Estate Brokerage business. Deborah utilizes her 12 years of Farmington Hills Real Estate experience in order to help clients with investment opportunities. She contributes to a daily Web Blog which focuses on the Oakland County Real Estate Market, as well as other topics important to Farmington Hills, MI and Southeast Oakland County. For more information on Deborah, please visit her real estate website at www.visitdeborah.com or via email: djohnson@realtor.com or (248) 254-3133

With an abundance of homes on the market, the majority of the inventory is either bank-owned or offered as a short sale.

The question many buyers ask:  What is the better bargain?

Buying a Foreclosure Property

Pros:

• Lowest priced properties on market
• Close within 30-45 days

Cons:

• Defects unknown other than what is determined by inspector
• Previous owners can be resentful of losing home and damage property
• Items such as kitchen cabinets, toilets, furnace, plumbing, etc. might be missing
• Not necessarily the best deal after figuring in the repairs needed

 Buying a Short Sale Property

Pros:

• can get a competitive priced property
• condition typically better than a foreclosure
• seller’s disclosure completed telling you of defects of property
• warranties are passed from seller to you
• appliances might be included

Cons:

• approval process through bank can be long
• short sale may not be accepted by bank
• not for buyer who is under a time constraint

 A foreclosed property is a home that is now owned by the bank. 

A short sale is a property offered for sale by the homeowner/occupant who is in a hardship position.  They are attempting to sell the home for less than what is owed on their mortgage. 

About The Author:

Deborah Johnson is an Associate Broker at REMERICA United Realty, a Novi Real Estate Brokerage business. Deborah utilizes her 13 years of Real Estate experience in order to help clients with investment opportunities. She contributes to a daily Web Blog which focuses on the Oakland County Real Estate Market, as well as other topics important to  Southeast Oakland County. For more information on Deborah, please visit her real estate website at www.visitdeborah.com or via email: djohnson@realtor.com or (313) 719-5835

Welcome to Deborah Johnson’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Western Wayne and Southern Oakland Counties.