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.

House Hunting Tips for Finding the Right Home in Ann Arbor

Posted by Toth Team Worldwide on January 16, 2014

In the hunt for the dream home, it’s easy fall for charming details and staged homes around Ann Arbor, MI. Some of them will even downplay flaws and distract you from what you should be looking at. When looking for a new home, consider these house hunting tips, so you don’t end up kicking yourself in the butt later on:

1. Establish Priorities

Talk with the family to establish the must-have features of your next home. It’s so easy to go off the rails if you see something that charms you, but if the home doesn’t meet the priorities on your list, you may regret the decision in the future. As you search for the home, it’s a good idea to take pictures of the landscaping or window treatments that sway you, and replicate them in the home that you choose at the end of your search.

2. Organize the Information

If you find a home you like, jot down the information. A spreadsheet or table in a word processing program makes it easy for you to organize it and sort it later, based on your priorities. You can even assign values and make financial calculations that will be useful when comparing the benefits of one property versus another.

3. Bring a Tape Measure

Oftentimes, home sellers will place smaller furniture in their home to showcase the “ample amount of space” you can have. However, measure the rooms that are critical for you, so you’ll know if your furniture will fit comfortably. The last thing you want is additional costs for new furniture.

4. Take Pictures and Videos

After a while, all homes seem to blend together, and by photo documenting your tours through homes, you’ll have a good reference to help you differentiate one from another. Be sure to ask the Realtor’s or homeowner’s permission first to lessen any misunderstandings. Plan beforehand how you plan to organize these visual tools, so that you can easily access a specific home later on.

Don’t skip looking in the kitchen and bathroom cabinets throughout the home. Once you move in, storage will be one of the most important issues you face. Wide open spaces in a home are visually appealing, but only if you have enough space to store items you don’t want to see.

5. Take Energy Efficiency into Account

It’s likely that the energy bills for a home are going to be one of your highest ongoing expenses. Inspect the attic for adequate insulation. Ask to see the utility bills for the last year and write down the brand and model numbers for the heating and cooling system if the seller or Realtor doesn’t know their ratings. You can research them online later to find their efficiency rating. The U.S. Department of Energy estimates that heating and cooling consume about half of what you spend annually on your energy bills. Given the cold winters in Ann Arbor, heating costs may rival your house payments.

Buying a Home in Ann Arbor, MI

Although organizing and documenting do add some work to the home buying process, home buyers who follow pre-established guidelines usually have greater satisfaction with the decisions they make.

5 Home Buying Mistakes to Avoid in Ann Arbor, MI

Posted by Toth Team Worldwide on January 9, 2014

With interest rates continuing to hover near historic lows, there’s no time like the present to buy a home in Ann Arbor, MI. However, interest rates aren’t the only consideration. You want to be sure you are in the right position to buy a home and don’t wind up making one of the most common home-buying mistakes. Here are some mistakes you should avoid this year:

1.Don’t Break the Bank

Most people who go house shopping get fixated on how much of a monthly payment they can afford. But many of those same people forget to account for other costs. Your mortgage payment consists of more than just the principal and interest on the loan. You also have to pay insurance and taxes, as well as mortgage insurance if you don’t put down 20 percent.

Before going house shopping, get pre-approved for a mortgage. This will give you a good idea of what you can afford. Consider whatever amount the bank is willing to finance to be the absolute maximum you can spend.

2. Don’t Forget about Other Costs

The costs of a house don’t stop with the check you mail to the bank every month. Before you can close on the loan there are closing costs for things such as an appraisal, an inspection, a credit check, and a loan origination fee. These usually total 2 percent or more of your loan. And once you start living in your house you will have ongoing costs for repairs and maintenance.

To account for these costs, make sure you have extra money besides your down payment as well as extra room in your monthly budget to deal with home-related contingencies.

Click Here to Explore Homes for Sale in Ann Arbor

3. Make Sure You Understand Your Real Estate Contract

If you want the appliances or window treatments to stay in the house you are buying, get it in writing. Also make sure you understand when the closing is scheduled and what will happen if the sale falls through.

4. Don’t Overspend on Furnishings

Buying a new house is exciting, and you will surely want to make it as comfortable as possible. But you need to resist the temptation to bust your budget on new furnishings and major remodeling. Borrowing a bunch of money to pay for these things could put you in financial straits and also put your credit score at risk if your debt level rises too high. Stick to simple inexpensive changes such as painting rooms new colors or using slipcovers on your old furniture if it doesn’t match your new decor. Save up for bigger changes to make later.

5. Don’t Buy if You Aren’t Settled

If you think there’s a chance you might have to move in the next couple of years, you should resist the temptation to buy. Unlike the early 2000’s, when people were flipping homes in a month or two and getting double-digit returns, if you try to sell a house now after a year or two, you’d be lucky to break even.

Buying a Home in Ann Arbor, MI

Buying a house is likely the biggest investment you will ever make, so you don’t want to mess it up. Do your homework and get your finances in order so you make the right decision.

New Year Resolutions for Your Ann Arbor, MI Home

Posted by Toth Team Worldwide on January 6, 2014

If you own a home, there are most likely some things that you have neglected in your house during the past year. This might have happened because you were too busy to deal with it, or you might have simply forgotten about it. Whatever the case may be, the new year means it is time for New Year’s resolutions. Here are some 2014 New Year resolutions you should consider this year:

1. Purify Your Indoor Air

The quality of indoor air is one of the biggest environmental hazards, according to the EPA. This is because indoor air contains many potential contaminants, including viruses, pollen, mold spores, and dust. When you have all of your doors and windows closed tightly in the winter, the problem is at its worst. These tips can help you to get rid of harmful lung irritants that are located in your home:

Clean single rooms with a portable air cleaner
Always burn real wood, not pressed wood products
Excess humidity, smoke, and cooking fumes can be removed by using localized ventilation in your bathrooms and kitchen

2. De-clutter & Get Organized

If you’re tearing your hair out from the lack of space, it’s time to get rid of some clutter in your Ann Arbor home. You can eliminate clutter by placing high shelves between narrow hallways. Use the areas located between wall studs and under staircases to store a lot of the junk you have taking up the space in your home. You can buy a shoe organizer to help clear up additional space. Drawers can also be installed in the toe kicks of your kitchen cabinets.

3. Curb Your Home’s Water Use

An average of 400 gallons of water each day is used in every house. This amounts to sewer and water expenses of $700 each year. To avoid this, try the following things:

Install low-flow toilets to help you save $90 in water costs. High-efficiency toilets use electric water pumps and compressed air to flush less than a single gallon of water.
Low-flow showerheads allow the water pressure to remain high while reducing the flow of water. They are easy for an average person to install.

Click Here to Explore Ann Arbor Homes for Sale

4. Cut Energy Use

Energy prices can have a tendency to drain your wallet. Insulate and seal all of your duct-work. This can help you to save up to 20 percent on your heating and cooling costs each year. The savings could be $200 or more. You should use metal-backed tape or duct sealant to seal holes, seams, and connections at floor registers and vents.

5. Use Maintenance-Free Materials

For any maintenance, you should use materials that are designed to be durable. Here are some materials to consider:

LED bulbs: They last 20,000 to 50,000 hours. If they are used for three hours every day, they will last for roughly 18 to 46 years.
Fiber-cement siding: It resists rot, insects, fire and dents. It is weather-proof and will last for 50 years.
Ceramic tile: It is resistant to moisture and stains. It will last for decades without needing to be replaced.

Start the New Year with Your Home Resolutions

Rome was not built in a day. Take your time and tackle these resolutions one by one. Before you know it, you will be living in a cleaner house. Your energy bills will also be significantly less. The new year will mean making your home a better place to live.

College Football Bowl Game Snacks to Enjoy at Home

Posted by Toth Team Worldwide on December 19, 2013

Bring the energy of a college football game into your own home with a more intimate setting … by hosting a bowl game at home. Celebrate the University of Michigan Wolverines with an appropriate menu of delicious and easy-to-prepare snacks for your guests. Here are a few ideas to get your Ann Arbor home party started:

Ann Arbor Football Snacks — by Yuri Long

Hearty Potato Cake With Ham

Potatoes are the perfect cold weather food. They keep easily and have a comforting texture. Fill up your guests with a hearty potato cake. Cut potatoes into quarter inch rounds. Layer a buttered casserole dish with potato rounds, thinly sliced ham, and heavy cream. Top with parmesan. Bake the entire dish for forty minutes. Slice the resulting cake into bite sized chunks and serve to guests.

Chicken Fingers

Chicken fingers are the ideal finger food. Make some in advance for your guests. Chop up chicken pieces. Coat with a mixture of egg wash and flour. Fry in hot oil. Make them even more special with the use of dipping sauces. Make a quick honey mustard by adding a few drops of honey to your favorite type of mustard. Serve along with ketchup you have spiced up by adding some of your favorite spices like freshly ground peppercorn.

Bacon Wrapped Shrimp

Shrimp are an easy snack that appeals to a wide variety of tastes. Shrimp that have already been peeled and boiled are widely available in many Ann Arbor area markets. Defrost them in advance. Wrap bacon around the shrimp and secure them with a toothpick. Place them under the broiler of your oven for a few minutes until the bacon becomes crisp. Serve with a cooling dip. Drain plain yoghurt overnight with a cheesecloth. Empty into a pan. Mix the results with olive oil and minced garlic.

Super Quick Nutritious Vegetables

Provide your guests with an immediate nibble once they come in your house. Cut up broccoli, carrots, turnips and green bell peppers into bite sized slices. Boil water. Place all of the vegetables in a colander. Pour the boiling water over the vegetables to blanch them. Serve with a dip of chopped garlic, chopped tomatoes and olive oil for a healthy boost.

Roast Chickpeas

Chickpeas make an easy and quick snack. Surprise your friends with a roasted version. Open up a can of chick peas. Drain them of all water as carefully as possible. Sprinkle on spices such as cumin or paprika. Place them in the oven for ten minutes. The result is a crispy snack with an unexpected bite.

Enjoy College Football Snacks

Gathering together with friends to watch as the Michigan Wolverines win yet another game is a great way to embrace the fall season. Make your party even more special by presenting your friends with easy to eat snacks they will all love.

Find a Home Perfect for Hosting Bowl Game Parties

Kathy Toth and Team REALTORS® Welcome Donna O’Toole to the Ann Arbor Area Real Estate Experts Team

Posted by Toth Team Worldwide on December 16, 2013

Kathy Toth and Team REALTORS® are pleased to announce the addition of Donna O’Toole, to the Ann Arbor Area Real Estate Experts team.

“We are very excited to have Donna join our team as a Client Care Manager, Closing Coordinator”, said CEO Kathy Toth. Donna brings over 25 years of mortgage background experience to the team. She will ensure all transactions are carried out efficiently and accurately while meeting client’s needs. In her spare time she enjoys watching her children play hockey.

With specialists handling each aspect of the transaction, Toth is certain that clients will get quality service, personal attention and results that they deserve during their real estate transactions.

Kathy Toth & Team REALTORS® have several open positions for those considering a career in Real Estate or a career move to Keller Williams Realty. Details are continually updated at http://www.KathyToth.com/job_opportunities

Kathy Toth and Team have been serving Washtenaw County real estate including Dexter, Ann Arbor, Chelsea and Saline clients for over 24 years. They are among the top one percent of REALTORS® nationally and have been featured twice on House Hunters HGTV. Kathy works directly with listing and buyer representative partners towards exceeding her client’s expectations while meeting their real estate purchase or sale objectives.

Kathy Toth and Team

Your Ann Arbor Real Estate Experts

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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!

Easy Tips to Hanging Holiday Lights for Your Ann Arbor, MI Home

Posted by Toth Team Worldwide on December 10, 2013

The holiday season is just around the corner in Ann Arbor, which means that you need to start thinking about hanging up your Christmas lights. It is an amazing feeling when you get this task done, but many people do not relish doing it. The key to getting it done is getting it started. Once you get some momentum going, it will be done in short order. To help you find the motivation to hang your Christmas lights this year, follow these tips to make it easy on yourself:

Ann Arbor MI Christmas Lights — by Christmas Lights, Etc

Spots & Tips to Hanging Holiday Lights Outdoors

Displaying holiday lights around the exterior of your Ann Arbor home is a great way to show your holiday spirit this year. Dazzle neighbors and children alike with colorful decorations that makes everyone feel at home this holiday. To get started, think about where you want to hang your lights. Places like the driveway, front door, bushes & trees, and around the windows are great places to add strings of lights.

Measure the area where you want to hang lights and consider how many lights you’ll need for the project. Also be sure to collect all your supplies, such as your work gloves, stepladder, and extension cords, to make the process easier. Once you’ve done the initial preparation, begin by testing the lights. Plug them in and spot any that aren’t working. It’s suggested you don’t connect more than 3 strands together, in case of any electrical surges. To save you time from turning the lights on and off, get a timer that is weatherproof and let the machine take care of the work for you.

Additional things to consider include clips, tacks, and adhesives made for hanging lights outside.

Spots & Tips to Hanging Holiday Lights Indoors

Besides placing lights around your Christmas tree, there are a number of other areas you can spread joy around the house. Places you might want to consider hanging lights include:

Around the walls of your bedroom
On the fireplace mantel
Up the stair rail
On a wreath
Around the windows

Again, be sure to measure the area where you will hang lights at and prepare the supplies. Items like transparent tape, tacks, and twist ties come in handy when hanging lights indoors. Always remember to work from the highest point first and work your way down. If you use tacks, make sure not to pierce the electrical wiring. If you place any lights in seasonal wreaths, consider using battery-operated lights to save you time and hassle.

Click Here to Explore Ann Arbor Homes for Sale

12 Tips to Selling Your Ann Arbor Home Before the Holidays

Posted by Toth Team Worldwide on December 6, 2013

Winter is upon us in Ann Arbor, and that means cold and snow. It can be difficult to drag potential home buyers out to your property to give it a look, so you need to do everything in your power to make your home as appealing as possible. While the task is daunting, get in the spirit of the season and you can accomplish wonders in just twelve days. Here are 12 tips to selling your home before the holidays:

Day 1: Find an Agent & See How They Can Sell Your Home

Finding the right real estate agent is complex and subjective, but it’s the first thing you should do. Interview possible agents and find out how successful they are, how much of a commission they command and what methods they use to market your home. Starting things off with the right agent makes everything that much smoother.

Day 2: See What Your Home is Worth

Your agent can help with this step. Combine their recent market analysis with your own research into recently sold homes. Look at the sale values for homes of a similar size and location as yours. This should give you an idea of what prices you can expect to draw interest.

Day 3: Decide on a Listing Price

If you set your price too high, you’ll fail to attract any buyers at all. Set it too low and you’re throwing away money. Talk with your agent to set a competitive price that will attract buyers to leave the comfort of their current homes to come check out yours.

Day 4: Make any Necessary Repair

Broken tiles, leaky faucets, warped floorboards, chipping paint — these are all common in older Ann Arbor houses, and they’re all problems that require time and money to solve. Invest this money yourself and you’ll make your home look more enticing to buyers. People want to buy homes that are in good condition, not fixer-uppers.

Day 5: Clear the Clutter in Each Room

No, you can’t just shove your stuff in a closet. Closet space in older Michigan homes is at a premium, so buyers will check to see what you have available. Clear out as much as you can, either boxing up, selling or donating what you don’t need. You’re moving once you close the sale, and clearing out clutter helps prepare. Also, you should get rid of any clutter lying around the house, including toys on the bedroom floor and papers stacked in the home office. Minimize things and your home will appear more spacious — a quality home buyers look at.

Day 6: Arrange Furniture in a way that sells

Avoid cluttered rooms. Never leave a room empty. Make sure traffic flow works. The layout in some of these old homes can be odd, so play around with furniture until you get a layout that feels right.

Day 7: Stage the Bathroom

No one lives with a spa bathroom, but everyone wants to think they can. Spice up your bathroom to attract buyers. Hide or remove your personal items, clean everything up, and spruce up the decor. A little hardware goes a long way.

Day 8: Stage the Kitchen

What applies to the bathroom applies to the kitchen. Clean up the appliances, hide your counter-top machines and display the selling points. If it has a window, emphasize natural light. If it’s cramped and small, make sure it’s well lit and gleams.

Day 9: Enhance the Curb Appeal

If it snows, clear the driveway and sidewalks, salt them, and avoid marching through the yard. Make it as picturesque as possible. If it hasn’t snowed yet, clear leaves and make the lawn look neat.

Day 10: Add Seasonal Touches

A few ornamental Christmas items can go a long way towards putting your buyers in the right mood. A couple of candles, lit before they arrive, can make your home smell inviting and pleasant. Be subtle and non-denominational, not garish.

Day 11: Prepare & Host an Open House

Advertise early and leave the rest to your agent. Having the seller present distracts buyers and leaves you prone to making excuses. Your house should be staged by now; trust your agent to handle the rest.

Day 12: Review Feedback from the Open House

If you don’t have a serious buyer, it’s time to revise your strategy. What made your house less appealing to buyers? Do you need to reduce the price? With the aid of your agent, you can use the open house feedback and repeat the process until your home sells.

Selling Your Home in Ann Arbor, MI

If you’d like more information about selling your home in the Ann Arbor area, read our free home seller’s eBook:

Kathy Toth Reveals Ann Arbor Real Estate Market Conditions on the Lucy Ann Lance Show

Posted by Toth Team Worldwide on December 5, 2013

When radio host Lucy Ann Lance asked Ann Arbor REALTOR® Kathy Toth about the local housing market, she received a wealth of information. “Average home prices year-to-date in Washtenaw County are up 18 percent,” Toth reported. “Meanwhile, the number of units sold did not change by much. The shortage of home inventory accelerated our home prices.”

Lance questioned how this has affected Ann Arbor home buyers. “We had multiple offers and bidding wars,” Toth explained. “Buyers who made their best offers first, and who used escalation clauses in their offers, were the most successful.”

Buyers who resisted the market trends were often disappointed. “A two thousand dollar difference in price is only about twenty cents a month on your mortgage payment,” Toth added. “There’s nothing worse than calling your buyers the next day and telling them the house was sold to someone else – over such a small difference in the offers.”

Ann Arbor and Dexter are the most competitive markets in Washtenaw County, with home absorption rates of 3.2 months and 3.8 months, respectively. Absorption rates under 6 months indicate a seller’s market. The fastest-moving market segment involves homes that are priced from $200,000 to $400,000.

When Lance asked what challenges remain for the market, Toth pointed to low home appraisals. “Appraisers remain skittish, and sometimes appraisals are based on outdated information,” Toth says. “In some cases we can point out mistakes made by the appraiser, or prove that the market has more recent data to use.”

Ultimately, if a low appraisal stands, there are still ways to save the deal. Toth illustrated an example. “If a home is truly over-priced, a seller may agree to a price reduction. Home buyers can also bring more cash to the table to cover the difference between their financing and the sale price.”

When questioned about the status of short sales and foreclosures, Toth had good news to share. “Two and a half years ago, distressed sales were 21 percent of our market. Now they’re only five percent of the market.”

Toth explained that homeowners who are experiencing a hardship suffer an emotional burden on top of a financial one. She advocates short sales as an important solution. “I’ve seen lenders forgive as much as $150,000 in debt,” says Toth. “We’ve negotiated debt forgiveness with first, second, and sometimes even third lien holders. We also negotiate credit reporting to help protect the seller’s credit history.”

The key to a successful short sale? “Comply with the paperwork demands,” Toth says. “And be patient.”

Looking to the future, Toth sees market conditions remaining positive in 2014. “We are on the right track, but there is more room for recovery. As long as interest rates remain stable, we should continue to see home price appreciation through 2014.”

Kathy Toth & Team have been serving Washtenaw County real estate including Dexter, Ann Arbor, Chelsea and Saline clients for over 20 years. They are among the top one percent of REALTORS® nationally and have been featured twice on House Hunters HGTV. Toth works directly with listing and buyer representative partners, with a goal of exceeding her client’s expectations while meeting their real estate purchase or sale objectives.

A recording of the radio broadcast aired by WLBY 1290AM can be accessed online at www.KathyToth.com/radio_shows. For more information about Kathy Toth & Team and their array of client services, visit www.KathyToth.com.

Ann Arbor Area Real Estate: 11225 Sand Hill Drive, Grass Lake

Posted by Toth Team Worldwide on December 5, 2013

11225 Sand Hill Drive

Bedrooms: 5 Bathrooms: 3.5 Square Feet: 2,425

See Virtual Tour for 11225 Sand Hill Drive

Attention to detail is around every corner in this 5 bedroom, 3.5 bathroom home! Step in to the beautiful formal living and dining rooms. The large windows, crown molding and chandelier give a sophisticated first impression. Move into the gourmet kitchen that will impress the most discerning home chef with abundant cabinetry and a center. The open floor plan will make entertaining a breeze with the adjacent great room and dining area with a lovely bay window. The great room is open and bright with vaulted ceilings, large windows and a cozy fireplace.

The details continue on the second floor with a spa like master suite. You will not be disappointed in the master bathroom! Dual vanities, soaking tub and separate tile shower are sure to impress. The second floor is completed with three additional spacious bedrooms and a full bathroom. A finished basement with a rec room, bedroom and full bathroom complete the home. Relax outdoors on the deck and enjoy the wide open space. Don’t miss this Ann Arbor area real estate gem!

ANN ARBOR AREA REAL ESTATE Listings

2405 Carlton Drive