Selling Michigan Blog

In today's high-interest-rate environment, homebuyers are looking for every possible advantage to secure an affordable mortgage. One often-overlooked opportunity is assuming an existing FHA or VA loan , especially those issued in the past few years when interest rates were at historic lows. An assumable loan allows a qualified buyer to take over the seller's existing mortgage, including its remaining balance, interest rate, and repayment terms . FHA and VA loans are generally assumable, but buyers must meet the lender's qualification standards, just like they would for a new mortgage. With interest rates currently much higher than they were just a few years ago, assuming a loan that carries a lower-than-market interest rate can be a game-changer for buyers. Here are some key advantages: Lower Interest Rate = Lower Monthly Payments - If the seller's mortgage has an interest rate of 3% or 4% , assuming the loan means immediate savings compared to today...

If you've owned your home for a long time, chances are its value has increased�maybe even doubled, tripled, or more. But did you know that a law written in 1997 still limits the amount of capital gains tax exclusion, despite skyrocketing home prices? Currently, homeowners can exclude up to $250,000 in gains if single or $500,000 if married filing jointly when selling their primary residence, as long as they've lived there for at least two of the last five years. But with today's home values, more sellers are finding themselves exceeding this exclusion and facing a significant tax bill. More Homeowners Are Now Affected In 2023, nearly 8% of home sales surpassed the $500,000 capital gains exclusion. However, in high-cost states like California (28.8%), Hawaii (23.8%), Washington, D.C. (22.1%), Massachusetts (17.9%), and Washington State (15.2%), the numbers were far higher, according to CoreLogic. What Happens If You Exceed the Exclusion? If a homeowner sell...

Benjamin Franklin famously stated that "in this world, nothing is certain except death and taxes." While his words still ring true, there's another unavoidable reality in modern life: rising costs. From groceries to energy bills, the cost of living continues to climb, and one of the biggest contributors to this is housing. Housing has always been a major expense for individuals and families, but recent data highlights just how burdensome it can be. According to an article released in September 2024, renters spent a median of 31.0% of their income on housing costs, while homeowners with a mortgage spent 21.1%, and those without a mortgage spent just 11.5%. Despite this, 18.8 million homeowners were still dedicating more than 30% of their income to housing expenses, illustrating that affordability remains a challenge for many. The long-term trends in housing costs are equally telling. According to the Federal Reserve Economic Data, rent increases have averaged 3...

As experienced real estate investors reach the limits of conventional financing options, creative approaches become essential for continued portfolio growth. Here are eight innovative financing strategies to help you expand your rental property investments beyond traditional boundaries: House Hacking offers a clever entry point for investors looking to maximize their purchasing power. By utilizing owner-occupied loans like FHA or VA, you can secure a property with minimal down payment and favorable terms. The strategy involves living in the property initially, then transitioning it to a rental once you've met occupancy requirements. This approach not only provides a cost-effective way to acquire property but also allows you to gain hands-on landlord experience while building equity. Seller Financing presents a flexible alternative to traditional mortgages. By negotiating directly with the property owner, you can often secure more favorable terms, including lower down pa...

Maintaining a clean and organized home is essential for creating a comfortable and welcoming living space. Whether you're preparing to sell your home or simply want to enjoy a clutter-free environment, taking time to declutter and deep clean can work wonders. Not only does it help you stay organized, but it also enhances the functionality and aesthetics of your space. This article provides a comprehensive checklist of tasks to guide you through decluttering and deep cleaning your home, ensuring every corner sparkles and feels refreshed. Decluttering Tasks: Start Small: Begin with one room, drawer, or closet to avoid feeling overwhelmed. Create Keep, Donate, and Discard Piles: Sort items into these categories to streamline the process. Purge Expired or Unused Items: Check kitchen pantries for expired food. Sort through toiletries and medications for expired products. Organize Closets: Donate clothes you haven't worn in the past year. Use matching hangers f...

In times of economic uncertainty, real estate stands out as one of the most reliable ways to protect your wealth. Unlike stocks or bonds, real estate is a tangible asset with intrinsic value that retains its worth even during economic fluctuations. Its physical nature provides stability, making it a safe and dependable investment. Over the past six decades, homes have soared, at an astounding annual compounded growth rate of 5.48%.   In 1963, the average home price was $19,300 and at the end of 2024, the average home price was $501,100.   In parallel, rent has steadily risen at 3.88% annually.   Inflation during the same 60-year period averaged 3.7%. Historically, property values tend to appreciate over time, often outpacing inflation and preserving purchasing power. This appreciation not only builds equity but also ensures that your investment grows along with or ahead of inflationary pressures. Additionally, real estate investments can generate rental inco...