Michigan Home Sellers Can Have 2 Primary Residences For Tax Purposes

Michigan homeowners need to be aware of the law that exists to provide tax savings to anyone who has a home for sale but has purchased another home. You can claim both properties as your Principle Residence and receive Homestead millage. This law went into effect for homeowners in 2008, as relief for Michigan home sellers who have moved and have not been able to sell their home in Michigan.
The law is called PA 96 of 2008, and it is a HUGE tax break for people in Michigan that expands the Principal Residence Exemption on unsold homes. If you live in Michigan, and own a home you are allowed to claim one house for a primary homestead exemption. Non-Homestead Tax millage is 18 mills higher than Homestead that is approximately 30% higher.
Now the legislature has allowed you keep two exemptions "if" you move from one home in Michigan to another one and are still trying to sell the previous home. The home must be vacant and for sale. You can claim this exemption for a maximum of 3 years by filing a Conditional Rescission of Principal Residence Exemption form.

Why Are Taxes So High on Foreclosures?

There are many factors that are going on there. More often than not, when a property goes to foreclosure sale, the Twp or local tax authority equalizes the Taxable Value to match the SEV. (Often grossly out of whack from realistic market value because the SEV is based on the last purchase price & other factors such as state formula). So bottom line, the Taxable value jumps considerably at the time of foreclosure sale! Also at that time to add insult to injury, the taxing authority reverts the property to the Non-Homestead Tax millage- 18 mills higher than Homestead for a double whammy! The non homestead tax rate is approx 30% higher than the homestead rate. This is termed Principle Residence Exemption

Other times the Twp or County does not catch the foreclosure sale and make the change right away. It is hard for them to keep up with all the foreclosure sales. So the taxes remain reasonable.

New legislation was just passed to prevent this problem by allowing a foreclosure to remain Homestead for a maximum of 3 yrs or until purchased before adjusting the homestead exemption

This is why you are seeing such a wide range of taxes on foreclosed properties.

In any case, when you purchase a foreclosure - the taxable value will again be adjusted and will revert to Homestead millage ( if the Principal Residence Exemption form is filed prior to May 1st). The townships will NOT automatically drop it to 1/2 the sales price because all taxing authorities are in need of money. Usually it is advisable to dispute the taxable value in the spring at the Tax Review Board within your local taxing authority's specified dates and times.

If any particular property interests you, be sure to ask a real estate professional or mortgage lender to verify the taxes because it will greatly affect your pre-approval amount and ultimately monthly payment. It is better to be well informed than to jump into a home and realize the taxes put you in the 'poor house.'

Redemption and Deficiency

Sellers facing foreclosure in Michigan have it better than any other state, as Michigan is a Redemption state. This means even once a foreclosure sale (sheriff sale) has taken place, the seller has the legal right to live in the home for 6 months to 12 months mortgage free (depends on amount of acreage attached with the home). This statute provides home owners in default the ability to redeem the property back in good standing. This way, property owners are afforded every opportunity to seek alternatives to foreclosure during this redemption period.

Michigan is also a Deficiency State. Being as such, a debtor or borrower who does not produce sufficient funds to pay the mortgage balance in full or negotiates terms to "satisfy" the loan, then the creditor has the right to pursue or sell the debt for 7-10 years. Many homeowners do not realize this applies to foreclosures, short sales and deeds in lieu unless specific language expressly states the loan has been satisfied or cancelled. Otherwise a deficiency judgment can be placed on your credit or this deficiency amount can be sold to a collection agency. Typically a deficiency judgment, until this is paid off, will not allow another home purchase through a lender.

This does not mean that the lender WILL pursue the debt, but provides them the right to. As of right now, every state except California and Oregon are deficiency law states.

Sounds of Sharing

On crisp starry nights, with tiny snowflakes gently falling, you can hear the unmistakable sound of tinkling bells faintly ringing at nearly every storefront & street corner. This comforting sound of Christmas is the Salvation Army Bell Ringers. Since 1891, volunteers have been standing in the bitter cold, ringing the golden bell and possibly even singing a Christmas carol or two. Amongst the hustle and bustle of the holiday season, passersby are encouraged to donate to this nation’s second oldest charity by dropping loose change into the red kettle and hear it cling and clang. However, if you are like many American’s today, you are probably carrying plastic including ATM & gift cards. This Christmas, we encourage you to make an effort to pull out your green, silver & copper and donate to those less fortunate. Add a jingle to that signature red Salvation Army bucket!! Happy Holidays to all our friends and family from the MacIntyre & Cowen Real Estate Team.

QR Codes in Real Estate and everywhere else

QR codes are coming up everywhere. You can be directly linked to a website, list of open houses, link to a particular property all with the click of your phone. I had a free app in my blackberry and set it up in 4 minutes. All you do is read it with your phone like you are taking a picture and you are connected. I have sence found many other QR codes. One in the Sunday paper linking me to holiday recipies and another in the alumni magazine from the college I attended ( Rhode Island School of Design ) linking me to an overview of a proposed law about art in education. It is the latest way to get information fast. The codes were created by a sub division of Toyota to scan inventory rapidly. ( QR - quick response) codes are fanning out into all aspects of consumer driven high tech data systems.

Good News for Greater Lansing, MI sellers

Michigan residents’ optimism about the future is at its highest in nearly five years, according to Michigan State University’s latest State of the State Survey. The number of Michiganians who say they believe they will be better off financially one year from now stands at 54.8%

National Association of Realtors has named Lansing, MI the 3rd fastest rebounding market in the United States in Oct 2010. Our community is receiving national attention for being one of the most affordable places to live.

**General Motors relocating 750 + workers from Tennessee plant in 2010. Also owns 700 additional acres in Delta Twp for future expansion.

**GM’s creation of 600 + jobs for the new small Cadillac line

**Eaton Rapids welcomes the Swedish wind turbine manufacturer with 280 – 550 jobs

**Auto Owners expanding- 80 new jobs

**Accident Fund expanding -500 new jobs

**Delta Dental expanding- Building 2 new facilities in Okemos

**MSU awarded $50 Million for Alternative fuel research and $550 Million cyclotron

**CATA was awarded Number #1 in North America for Public Transportation

**Lansing, MI was just awarded “Top Ten Best Tasting Water in America”

**Cooley Law is largest law school in the county

**Lansing Old Town and Downtown – Revitalization Projects

In Oct 2010, Governor Granholm announced a historic $2.1 billion investment by companies in Michigan, creating 6,000 new job opportunities for workers in the state and retaining more than 200,000 jobs.

We encourage you to take another look at the possibility of buying and selling in today’s market. MacIntyre & Cowen would gladly provide a complimentary Over the Net Home Evaluation or email alerts to Hot Buys/ Foreclosed /Liquidation/ Distressed Properties
Thank you, Pmac Team

Title Tidbits - Tenancy

Be aware when purchasing a home that you need to direct exactly how your deed will reflect tenancy. If you are a single person buying a home, no notation as to tenancy is needed. However, purchasing with another person, or mulitiple people, it is important that tenancy read in a manner that reflects your wishes.
The basics:

Joint Tenancy with full rights of survivorship - each individual owns an equal share in the property. When one tenant passes away, their share passes to the remaining tenant(s).

Tenants in Common - two or more related or unrelated purchasers (co-tenants) own the property in equal or unequal shares. Each share is undivided meaning each has equal right to the whole property. Unlike in a joint-tenancy, the share of a deceased co-tenant passes on to his or her estate and heirs. All decisions to develop, mortgage, sell, or use the property may only be made collectively by all co-tenants.

Tenants By the Entirety with full rights of survivorship - this is the assumed tenancy for married purchasers. The property is owned as a whole by each spouse. The passing of one spouse transfers the whole ownership of the property to the surviving spouse. The passing of the sole surviving spouse transfers the property to that individuals Estate.

BEWARE OF GIMMICKY FORECLOSURE WEBSITES

My real estate office receives calls and online inquires daily from eager bargain busters looking for access to properties found online advertised as “foreclosed/ liquidation/ tax sale/ auction” properties available for sale. These properties more often than not have NO indication of being foreclosed, available or listed for sale. Often these internet shoppers are looking for non MLS foreclosure listings and wish to deal directly with the banks in order to cut out the middle man (realtors) and walk into boo-koo instant equity.

I am not going to go as far as to name names, but several predatory sites feed off consumer curiosity and their natural desire to “sniff out the hottest buys before being available to the public.” These sites ask for membership fees and credit cards information and in exchange for a “propriety lists of liquidation properties not available on the market!” Often one can spot these websites with the following characteristic. 1. If it seems too good to be true, it is. For ex. a Million Dollar home available for purchase for $99,797 in back taxes. 2. Missing information -Many of these sites will not legally be allowed to display unreliable & unauthorized information and are prohibited in advertising complete addresses, property features, photos or contact information. For example, they will give a photo and a street, with no street numbers.

Truth of the matter is and are you ready for this? AVAILABLE DISTRESSED, FORECLOSED AND GOVERNMENT OWNED PROPERTIES WILL BE LISTED ON THE MLS IN YOUR AREA - PERIOD. The lenders rarely, if ever, will consider direct offers. There is a reason for this. The banks must follow very specific procedure & protocol to ensure the legitimacy of the legal process. When a new foreclosure comes down the pipeline, it is assigned a bank asset manager who in turn contacts an affiliate real estate professional in that territory to evaluate, list & market the home for sale. It is in the lender’s best interest to market the home to the public through free, openly- displayed, public information in order to generate the highest price & most qualified buyer. You can see how ridiculous it seems on the other hand for a lender to
begin wheeling and dealing with the first buyer who finds the property tucked away on some very mysterious website and pays for a private list with contact information.

Many times these websites are only telling half of the story; advertising the amount of perhaps only the 2nd mortgage as the purchase price. Many of these so called ‘REO/ Foreclosed” properties are occupied homes with homeowners who have found themselves behind in payments or taxes. All of which are at least 12 months out from full foreclosure & have every intention to redeem their home in good standing!!!! Steer clear of gimmicky foreclosure sites asking for any type of payment or over zealous personal information beyond name, phone, email and property criteria.

Can't Sell Your Home For What It Is Worth????

Upside down on your home? Many Greater Lansing Michigan sellers, like home owners all over the country, are experiencing the frustration of out growing a home that they cannot sell for enough to clear their mortgage payoff, let alone pay brokerage fees and closing costs! We have all heard of short sales as the alternative....but what about those who do not qualify? Or those who do not wish to ding their credit in hopes to turn around and purchase? What are the alternatives when you can not price your home to compete with the many foreclosures / short sales throughout your neighborhood?

OWNER FINANCING : A growing percentage of Americans have weathered through this economic downturn with a direct negative affect to their credit score. Making for an huge spike in good hard working families across all of our communities that temporarily DO NOT qualify for traditional mortgage financing. Day after day, my office fields calls of prospects with strong income & down payment money who have fallen below the 620 credit score minimum. These buyers are looking to pay good money for land contracts, lease purchase and lease w/ options. Unfortunately, there is little to no inventory offered.

As a seller, you have pricing leverage if you are open to owner financing terms because the competition is virtually nonexistent. You usually can drive the negotiations based on this fact. Best of all, you are able to use this income, land contract and/or lease agreement as a way to free yourself up for a pre-approval and move up into another home! Of course, you need to screen candidates thoroughly and there is always some risk and a little leap of faith. Generally we advise to collect enough money up front that it will hurt quite a bit if the buyer decides to default! I strongly advise you involve a real estate professional to protect your interests and provide the appropriate provisions within the agreement. We are always here to assist and provide the options for your situation.

Feeding our Feathered Friends

Fact- As a homeowner, it’s always a joy to see the variety of birds that call your backyard home. There are a few things you might want to take in consideration before you feed your feathered friends. Just like us birds gotta eat too! Like many things, having a bird feeder can pose a variety of problems. Here are a few things you should know before you turn your backyard into the neighborhood smorgasbord.

Just like anything else mold can develop on feeders with moldy or rooting bird seed. This is a threat because this can spread disease among birds who drop in for a feeding session. To combat this issue, make sure bird seed remains dry and always clean the feeder. A simple solution anyone can make is diluting a small about of bleach (10 percent) and water, to disinfect the bird feeder. There are also a ton of berry and nut producing plants on the market; you can also place around the yard as a natural food source to feed birds. Besides providing a feeding source, you can also invest in shrubs and bushes with thorns, which make excellent shelter options. Brush piles are another way you can protect birds from predators and stormy weather. In addition, to feed also make sure the birds are well hydrated. Fresh water is highly important, check around there are special heating units to keep bird baths ice-free during the winter months.

Well, we have gotten the three necessities covered food, water and shelter for birds. There are other food options you can place in your feeder, just check your local supermarket or home supply stores. Attract a large diversity of birds through sunflower seeds. A simpler way of eliminating the mess from seeds, you can also invest in sunflower chips which are a little bit more expensive, but they eliminate the mess. Cardinals, chickadees, red –bellied woodpeckers, and mourning doves enjoy the taste of safflower seeds. This white seed also keeps squirrels and blackbirds away also. Worth the money, the thistle seed attracts golden finches, house finches and purple finches. Peanuts without the salt or sugar also make a great meal for jays, woodpeckers, nuthatches, and chickadees.


If you are looking to expand beyond the basic of bird seed and nuts, you can also feed birds beef kidney fat and suet. These high in fat content feed are high energy foods that keep birds warm and are best used in the winter months. Other options included whole kennel and cracked corn, this makes a good meal option for blue jays, woodpeckers and squirrels. Cracked corn will also not mold or rot.

Not only birds will be attracted to your feeder, cats, mice, raccoons and squirrels can also come for a meal. Besides these pests hawks and birds of prey can come to catch a feathered meal, take extra precautions to keep these pests at bay. Happy Bird Watching!

Moving with Children - The easy scoop on the difficult process

So you want to move but even just the thought of moving your children sends shivers down your spine. First you think about all of their stuff and then it settles in that they will be disorientated and possibly angry that they will be leaving friends and comfortable situation behind. But we are here to tell you that it is possible to move your family without parting the dead sea first. Plenty of Greater Lansing, MI families have undergone this process and it went smoothly for them because they followed these simple guidelines:

1- Tell your children as soon as you know you are moving. Nothing upsets a kid more then being thrown into a situation last minute. This is all to inviting of tantrums and refusals. Sit them down and let them know where when and why.

2-Be excited about the move. Children are professional emulators or their parents and even the slightest signs of doubt will rub off on them.

3-Be open to questions. This is very important for children whether they are young or older. Answer every single question they have and they will feel much more comfortable about the entire situation. Make sure to ask them if they have any questions as well because this will give them the opportunity to be open about their feelings.

4-Let them help you move. Children want to be part of the action so let them! The simplest duties can make a kid forget about the move and concentrate their feelings elsewhere.


There you have it! Follow these steps and you will find yourself in a very manageable situation. Moving with kids is not impossible, just be open and willing to explain.

Thats a fact,

pmachomes

Misquito Madness

So your looking for a private, treed backyard where you can lean back in your chair and relax on a summer evening. Well if you're from the Greater Lansing Michigan area than you know that this is all too inviting to those needle-nosed nagging mosquitoes. Just the thought of the endless scratching is enough to make someone leave their dream of a backyard paradise inside their head. But if there is one thing that us humans are good at, it is finding interesting ways to take care of pesky problems. Since the everyone has a different preference for how they avoid mosquitoes, I decided to compile a list. Some of these are simple and some are quite intricate, it is up to you to find what works the best for yourself.

1 - Bug Spray - Make sure your spray has about 25% Deet for hanging out outdoors. Companies have come out with great new alternative sprays that don't smell as bad and go on super dry.

2-Plant particular flowers and plants around your home- Planting marigolds, catnip, rosemary and basil can be effective ways to keep mosquitoes at bay. Many believe the strong odors of the plants mess up the mosquitoes sensors.

3-Dry Ice- Many of the methods for avoid mosquito bites is to attract them to something different. Putting dry ice in a bucket about 20 ft away from where people are gathering is supposed to keep mosquitoes far away. Apparently they are attracted to the CO2 we breath out so the CO2 produced by dry ice in water is a perfect detouring element.

4-Nets- If you hate the weird smells and don't want to spend too much money, buy mosquito net. These can be hung around your patio furniture and are an effective way to keep bugs out. Plus, this one time purchase is very cost effective.

These are just some of the great ways to keep mosquitoes off of your skin. Don't let pests control your home buying decision. For more information on finding a private, treed in lot, go to http://www.pmachomes.com

Green Living Tips and Tricks

Fact- We are all fortunate to live in a time where global preservation techniques are constantly being monitored and improved. With the population growing bigger and bigger, it is up to us to help reduce waste and preserve natural resources. All of this can seem very overwhelming and it seems nearly impossible to make a contribution that will truly help, but this is far from the truth. You've heard it said before and it will rightfully be said again and again, if everyone pitches in a little bit, mountains of change can result. Here are some small tips that can help you reduce, reuse, recycle, and even save you some money!

1- Use a Fan!- Air conditioning can run up the bills and use massive amounts of electricity. Using a fan can lower a room temperature 5-10 degrees for a fraction of the price. Ya sure it's hot outside but embrace the good weather while we have it!

2-Re-Use Rainwater- If you live in the Greater Lansing Area then there is good chance you have plenty of rain during your year. Put a bucket outside and collect the water for use later to water plants or your garden. The process of cleaning water is not cheap and plants don't really have a preference as to what their water tastes like.

3- Grow a Garden - Growing your own garden can be a great way to save money and an even better way to practice being green. Gardens reduce the combined costs of growing, transporting, and selling food at a supermarket. Besides, growing a garden can be a great exercise and really rewarding.

These are only three of the millions of ideas for living green. Do some research and learn how you can be part of the solution.

The Rainy Day Home Seller

Fact - When selling a home, a rainy day can prove to be an amazing motivation tool. The summer months tend to take us from our homes out into the sunshine, but this can cause sellers to push aside important tasks that need attention. Remember, if you are serious about selling your home, then you need to be serious about making it look its best. Here is a few rainy day chores that take a huge chunk out of your "To Do Before Selling!" list:

1- Clean out the basement - This area of the home is many times looked at as a over sized storage bin. The basement is were you will take things that you hope to never see again but are afraid to throw away. This may be perfectly fine for you but what about a buyer with kids? The basement offers a ton of extra space that can be finished to provide a play room for children, or at least a safe spot to get them out of your hair for a bit! Basements can be used to house laundry rooms, provide space for hobbies, they can be turned into second living rooms and can even offer space for a second kitchen. Go through the basement and CLEAN IT OUT. No, don't just move things around, CLEAN them out. Throw away old decorations and give old clothes to a local charity. A good rule of thumb is that if you can't even remember the last time you used something, throw it away. Make the basement an area where people can imagine themselves living, rather than just storing their stuff.

2- Detail the windows - Many times people forget to really clean their windows for no reason other than they just don't think about them. Windows are amazing in their abilities to collect crud from all around the house. Clean the inside glass with some window spray and by using a piece of newspaper, you can really reduce smudging. Grab the vacuum and suck out all of the dead bugs and follow up with a wet rag. Make sure to really get in there and get everything all cleaned out. The beauty of paying extra detail when cleaning your windows is that you won't have to clean them that often from then on.

3- Clean under appliances - Anyone who has ever moved their refrigerator knows that the things that manage to get under there are the closest things to aliens that man has seen thus far. Move these big appliances: washer, dryer, dishwasher, refrigerator, etc. and clean under them. Once again, this is a task that can be done a few times a year and be maintained fairly well, but you will be amazed at what you find under there. You never know what buyers may look for and if its that, you will be all set!

Obviously there is a million tasks to get done on a rainy day, but these are just a few to get you started. Get the hard work out of the way so that when the sun returns you will be able to enjoy the day. A little work goes a long way. Happy cleaning!

-Pmac