Author: Toth Team Worldwide

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Kathy Toth and Team are Washtenaw County, Michigan real estate experts who will guide home buyers and sellers through the entire real estate process. Our extensive knowledge of Washtenaw County areas, combined with decades of expertise in the local real estate market is extremely valuable to helping you achieve your goals. For quality service and personal attention during your real estate transaction, contact Kathy Toth and Team for all your home buying and selling needs.

We want to be your real estate agents!

Closing Cost Basics | Ann Arbor Real Estate

Posted by Toth Team Worldwide on January 23, 2014

Closing costs can sneak up on an unsuspecting home buyer in a hurry. In order to avoid any unexpected obstacles, prepare for the total purchase cost from the beginning through understanding what closing costs are and what they include.

Ann Arbor Real Estate — Photo by Chris Potter

About Closing Costs

Closing costs are typically associated with fees due on, or before, the date a buyer closes on a new home. Real estate agents and brokers, the mortgage lender, insurance companies, and state and local governmental agencies are the most likely sources of these fees. Some items that tend to get lumped in with closing costs are actually paid prior to closing or separate from the closing itself. Examples include title search fees, title insurance, taxes, property insurance and association fees.

Upfront costs can vary widely from market to market. There can be as many as a couple dozen items that need to be handled by a home buyer before signing on the dotted line at closing. They range from the loan origination fee, typically 1 percent of the purchase price, to costs for required inspections, an appraisal, and for recording fees. The title search and title insurance fees protect the lender from secondary and silent liens on the property. In some cases, an escrow deposit to cover the cost of private mortgage insurance and the first few months of property taxes will be required.

Estimated Price of Closing Costs

As a rule, home buyers will pay anywhere from two percent to five percent of the total purchase price in upfront costs. A recent nationwide survey of closing costs showed that Michigan’s were among the lowest in the U. S. The survey used a $200,000 home value as the benchmark. In Michigan, these costs amounted to an average of $2,203, of which $1591 went to the lender, and $611 went to third parties. A buyer seeking to “buy down” the interest rate upfront will add one percentage point of the total purchase price for each discount point purchased. Prepaid fees were also excluded from the survey.

Minimizing Their Impact

It’s not possible to avoid upfront costs entirely, but there are ways to minimize them. If the lender allows for it, a no-closing-cost mortgage is one possibility. The lender will typically charge a higher interest rate or include these costs in the mortgage, but for a cash squeezed buyer already struggling to come up with the down payment, it can be a good option. Finally, closing costs in a traditional transaction are born by the home buyer. But, as always, many aspects of a real estate purchase can be negotiated. Closing costs are no exception. A seller who agrees to pay for closing costs, however, may be less willing to negotiate in other areas.

Do your homework early to avoid last minute surprises. Then, sit down with your Ann Arbor area real estate agent with the confidence you are ready to write the purchase offer that best suits your needs.

What to Consider Before Purchasing a Home

Posted by Toth Team Worldwide on January 22, 2014

We at Kathy Toth & Team are fortunate to have a great working relationship with several trusted lenders in the Ann Arbor area, one of which is Steve Stork. Steve comes to us today to share some knowledge about things that you should consider before purchasing a home.

Purchasing a home is likely to be the largest financial transaction in one’s life. Before beginning the home search, it’s important to first step back and take a look at the big picture. A few questions below can help add perspective to the main question, “Am I ready to own a home?”

How much can I afford to purchase?

It’s important to create a monthly budget to have an idea how much is available to allocate towards your mortgage payment. This will also confirm what remaining cash flow is available to add to savings once all monthly bills are paid. Mortgage calculators are a great way to identify what your monthly housing payment would be, which will also help to identify what price range and area you should be looking in.

Have I saved up enough money?

Lending institutions will review assets up front to confirm you have the required amount to qualify/purchase a home. A required down payment can range between 3.5% to 20%+. The higher the down payment means less risk to the bank, and ultimately better loan terms and interest rates. Beyond the down payment, it’s important to plan for life’s unexpected events, such as a required home repair, injury, or job loss. Having additional savings above and beyond the required amount needed to purchase a home will help to offset unforeseen risks.

Is my credit score high enough to qualify?

The purpose of a credit score is to show ones ability to meet their monthly obligations in a timely matter. The minimum credit score requirement will be determined by the type of loan you’re applying for. The highest possible credit score available is an 850, however any score above 740 is considered excellent, and is eligible for the best interest rate offered. Most individuals in this credit score range are applying for a conventional loan. Many times an individual is just starting to establish their credit or in the process of repairing their score and may not qualify for conventional financing. Because of this, there are government loans, such as FHA and VA. These loans offer lenient financing terms, which in turn help broaden what financing terms can be offered to a home buyer.

How long do I plan to live here?

There is no crystal ball when it comes to life’s plan and ones future. Even so, it is still important to assess if you see yourself in a particular home and area for 5, 7, and even 10 years. Important questions to ask yourself would be – Do I have enough space to start a family here? Do I have any potential of being relocated for work? Is this a neighborhood where I want to raise children? On average, it takes roughly 5 years before one begins to build equity in a home. If you’re uncertain if you can see yourself in a home for at least 5 years, it may be best to rent. Everyone’s situation is different. If you’re still unsure of renting or owning, it may be helpful to reach out to a Specialist on with Kathy Toth and Team, who can help assess your options so that you can make the best decision possible.

Why is it important to work with a Real Estate Expert?

Before beginning the home search, it’s important to sit down with a Real Estate Agent so that you can identify what is most important to you in a home/area. What are some of the, “Must haves” and what would be nice, but not necessarily a requirement. Your Real Estate Expert has access to the multi-list, and can send you a tailored home search criteria based off your expectations and price range. Having a Real Estate Agent represent your interest on a purchase is at no additional costs to you as the buyer. It’s important to work with an expert, such as Kathy Toth and Team, as they have the ability to negotiate the best possible home price for you.

If you’re on the fence about purchasing a home or not sure if you’re quite ready, call an expert with Kathy Toth and Team today for a free consultation.

Steve Stork is a Senior Loan Officer with Summit Funding, Inc. He can be reached at [email protected].

2013 Recap for the Ann Arbor Area Real Estate – Insight by Ann Arbor Area Real Estate Experts

Posted by Toth Team Worldwide on January 21, 2014

2013 Recap for the Ann Arbor Area Real Estate Market. Here is a recap of a very active year in residential and condo sales in the Ann Arbor real estate market.

In real estate, you will often see or hear the Median Price vs. the Average Price in the reporting of statistical data. The Median Price represents the middle of a specific group. Place the amounts or the numbers of the selected group in value order and select the middle number. If there are two middle numbers you average those two. If we used the Average Price, all it would take to influence a large change, up or down, would be one very high or one very low priced home to skew the results. Therefore using all the data and selecting the Median price will provide a more accurate depiction of our local price levels. The median price, therefore, provides a real-time market overview.

The Residential and Condo sales volume (above) showed strong sales at the end of the 2nd quarter and holding through the 3rd quarter. The last quarter slowed to April and May levels with a steady selling period to finish out the 2013 calendar year. Throughout the 2013 calendar year, inventory was low. There are plenty of qualified buyers out looking for homes and condos. If you are thinking of listing your home or condo, this is the time to speak with the Toth Team to get your questions answered. With inventory low, prices in many areas have been rising.

Below, the highest Median Monthly Sales Price for Residential properties was $234,950 in June. The Condo Median Prices remained steady with January and June showing the highest priced median selling months at $160,000.

In our particular charts we are looking back at the Monthly Sold Volume and the Median Monthly Sales Price for 2013. Information has been gathered from the Ann Arbor Area Board of REALTORS stats.

To search for homes visit www.HomeSearchAnnArbor.com

Stay abreast of the market with your smart phone: www.HomeSearchAnnArbor.com – get mobile! Find all homes and condos in our Washtenaw County area.

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How Much Home Can You Afford in Ann Arbor, MI

Posted by Toth Team Worldwide on January 21, 2014

The American dream of home ownership took a hit during the recent housing crisis. Now that the bubble has burst, and the housing market has regained much of its previous shape and form, many Americans are once again attracted to what has always been the intrinsic benefit of home ownership. That is, having a place to call their own. Determining how much home you can afford, however, continues to be the question that most often causes potential home buyers to fret. Here are some things to consider before buying a home in Ann Arbor:

Old Ratios still Apply

The first things you’ll want to take a look at involves a couple of easy calculations. The housing ratio rule says you’ll be qualified to take on a mortgage for a new home if your monthly house payment, including taxes and insurance, does not exceed 28 percent of your pre-tax monthly earnings. Income often does not tell the full story, however. You’ll also want to take your ongoing debt into account. Car loans, student loans, credit card bills and the like can affect your ability to make regular and timely payments on your new mortgage. The rule here is that your debt to loan ratio should not exceed 36 percent of gross monthly income.

Bigger Down Payments Help Ease Mortgage Rates

While you can sometimes qualify with less, a good down payment should be roughly 20 percent of your total loan. Hitting this mark will allow you, in most cases, to avoid having to purchase private mortgage insurance. Besides, lenders love cash up front. If your credit score is below 680, home loans can get very pricey in a hurry. Higher risk for the lender equals higher cost for you. Even if you qualify for a so called “conventional” mortgage, most lenders will charge a “less than perfect” credit borrower more to insure the loan against default.

Think about Tomorrow

Even after having worked your way through the aforementioned calculations, it’s probably time for a little soul searching. Even if a lender qualifies you for a nice mortgage, it’s important to think about your own comfort zone. The old term “house rich but money poor” applies to those who have stretched themselves so far financially to get the house of their dreams that they have significantly hampered their ability to live the lifestyle of their dreams. Only you know how much you can afford to spend on a home. Also don’t forget to do a little future prognosticating. If you plan on getting married, having children, putting existing children through college or even just buying a new car, the last thing you’ll want to be is money poor.

Get Good Help

Depending on where you are in the process, there are any number of good sources of information. A real estate professional with knowledge and experience navigating the vagaries of the market area your exploring can be invaluable, as can a good mortgage loan officer. Don’t be afraid to ask for help. Purchasing a home is, for most, the largest and most significant investment decision they’ll ever make.

Pacific Rim Restaurant in Ann Arbor for Delicious Asian Cuisine

Posted by Toth Team Worldwide on January 20, 2014

We just recently enjoyed a wonderful meal and dining experience at the Pacific Rim by Kona in downtown Ann Arbor. I enjoyed every aspect of the meal. The menu was extensive. The food was beautifully presented. The ambiance was great, and you can actually hear each other’s conversations at the table. The wait staff was very professional and we knew they really wanted us to enjoy the entire dining experience.

Their contemporary pan-Asian cuisine draws from the best of Japanese, Korean, Chinese, Vietnamese and Thai food. Seasonal fresh ingredients are used in preparing each dish. We had the Steak with Vegetables on Rice and the Sablefish along with Salad and Desert. (Menu) The food looked so good and tasted great, too.

Pacific Rim located at 114 W Liberty Ann Arbor, MI 48104. The first block west of Main Street in downtown Ann Arbor, MI. For Reservations or call 734.662.9303. Hours: Mon-Thu 5:30-9:30 pm | Fri-Sat 5:30-10:30 pm | Sun 5:00-9:00 pm.

Search for Homes in Ann Arbor and the surrounding area at www.HomeSearchAnnArbor.com.

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Ann Arbor Area Real Estate for Sale: 35 West Philips

Posted by Toth Team Worldwide on January 20, 2014

35 West Phillips

Bedrooms: 3 Bathrooms: 1

Square Feet: 960

This close-to-town charmer is move in ready! A wonderful ranch style home that is neat and tidy, all for a great price! Enjoy the redone kitchen, with ample eating area. The living room is ready to gather friends and family. Three bedrooms allow for endless possibilities, guests, home office, or a study.

Many updates include: newer roof, bathroom, and windows. There is hardwood under the carpeting. The yard is fenced, pet friendly and safe for children. Walk to parks, shopping and all that downtown Milan has to offer.

This home is wired for a generator. Home warranty and two air-conditioning units included. Don’t miss this opportunity for home ownership in the Ann Arbor Area Real Estate market! This one is priced to sell!!

ANN ARBOR AREA REAL ESTATE Listings

7881 Baker Heights Court

2425 Hay Creek

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The Earl in Ann Arbor, Michigan is Always a Fun Dining Experience

Posted by Toth Team Worldwide on January 18, 2014

The Earl Restaurant in Ann Arbor, Michigan serves a delicious French and Italian country cuisine. The menu is broad and the wine list is one of the best in Ann Arbor. The minute we entered The Earl in Ann Arbor, we were greeted in a song.

Ours meals were delicious. This is truly a friendly, casual dining experience. Keep The Earl in mind if you want to entertain larger groups. They do have private dining arrangement for up to 50 people. The location is perfect for meeting friends after work for their Happy Hour Special during the week.

Some of you may remember The Earl back in the late 1970’s. The restaurant was a Jazz Club. Just a few years later, 1979, they decided to Jazz Up the ambiance and the menu and turned The Earl into a fantastic downtown Jazz restaurant serving an award-winning French and Italian cuisine (menu). There is live Jazz music in the dining room five nights a week starting at 7 pm and Saturday and Sunday at 8 pm. Make your reservation for an evening out at The Earl. The Earl is located at 121 W. Washington, in Ann Arbor, MI 48104 – Between Main and Ashley, downtown Ann Arbor.

If you are searching for a home in Ann Arbor or the surrounding area, use HomeSearchAnnArbor.com.

Your Ann Arbor Real Estate Experts

Keller Williams Realty