Southwest Michigan Realtor Blog

By Michael Delaware, REALTOR®

Monthly Archives: December 2010


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Crystalline Trees in Southwest Michigan

On December 29th, 2010 I was driving through Bedford towards Augusta, Michigan in the Southwest, and I could not help but notice the beautiful display of Mother Nature with crystalline trees. 

Crystalline Trees along the road to Augusta in Southwest Michigan - December 2010.

The trees were all icy, and the branches were white against a blue sky.  Perhaps it was the blue sky that made them stand out so?  Whatever the case, I could not help but be enamored with the wonder of their beauty and snap a few photos from the road.  Later on in the day, the weather had warmed up and changed and the artistry of Mother Nature was gone, but I still had the memory. 

Later on in the evening, my wife came home from work, and although it had been several hours since I saw the crystalline trees, she commented on them.  She asked me if I had seen them, and she too was impressed with their beauty.  It is hard to see it fully in these photographs, but the branches sparkled as you drove by, and they were against the blue sky back drop, so they were ever so stunning. 

Being a Realtor in Southwest Michigan, I frequently find myself driving all over the

To create this icy trees effect it takes a perfect combination of wind, moisture and freezing temperatures.

 countryside and I have seen many beautiful displays of nature.  However, this particular winter display takes the right combination of dew, melting and freezing with a sudden clearing away of the clouds to make the show that we saw yesterday.  So I attribute the beauty to the wonders of winter in the hands of Mother Nature, and just enjoy this during the week between Christmas and New Years. 

I just wish I had been able to get more close up photos, but I had an appointment to get to and so I had to shoot the photos while I drove by them.  Still, I hope I was able to capture some of the crystalline trees for you from beautiful Southwest Michigan!

Mother Nature displays her beauty in winter with icy crystalline trees - December 2010.


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U.S. Census Bureau Announces 2010 Census Population Counts — Apportionment Counts Delivered to President

The Following article was release last week by the U.S. Census Bureau concerning the 2010 U.S. Census:

The U.S. Census Bureau announced today that the 2010 Census showed the resident population of the United States on April 1, 2010, was 308,745,538.

The resident population represented an increase of 9.7 percent over the 2000 U.S. resident population of 281,421,906. Commerce Secretary Gary Locke, Acting Commerce Deputy Secretary Rebecca Blank and Census Bureau Director Robert Groves unveiled the official counts at the National Press Club in Washington, D.C.

“A big thanks to the American public for its overwhelming response to the 2010 Census,” U.S. Commerce Secretary Gary Locke said. “The result was a successful count that came in on time and well under budget, with a final 2010 Census savings of $1.87 billion.”

The U.S. Census results are in...

Rebecca Blank, now Acting Deputy Secretary of Commerce who has overseen the 2010 Census as Under Secretary for Economic Affairs, echoed Locke. “The 2010 Census was a massive undertaking, and in reporting these first results, we renew our commitment to our great American democracy peacefully, fairly and openly for the 23rd time in our nation’s history.”

The U.S. resident population represents the total number of people in the 50 states and the District of Columbia.

The most populous state was California (37,253,956); the least populous, Wyoming (563,626). The state that gained the most numerically since the 2000 Census was Texas (up 4,293,741 to 25,145,561) and the state that gained the most as a percentage of its 2000 Census count was Nevada (up 35.1% to 2,700,551).

Regionally, the South and the West picked up the bulk of the population increase, 14,318,924 and 8,747,621, respectively. But the Northeast and the Midwest also grew: 1,722,862 and 2,534,225.

Additionally, Puerto Rico’s resident population was 3,725,789, a 2.2 percent decrease over the number counted a decade earlier.

Just before today’s announcement, Locke delivered the apportionment counts to President Obama, 10 days before the statutory deadline of Dec. 31. The apportionment totals were calculated by a congressionally defined formula, in accordance with Title 2 of the U.S. Code, to divide among the states the 435 seats in the U.S. House of Representatives. The apportionment population consists of the resident population of the 50 states, plus the overseas military and federal civilian employees and their dependents living with them who could be allocated to a state. Each member of the House represents, on average, about 710,767 people. The populations of the District of Columbia and Puerto Rico are excluded from the apportionment population, as they do not have voting seats in Congress.

“The decennial count has been the basis for our representative form of government since

Michigan was the only U.S. State to see a drop in population over the last decade.

 1790,” Groves said. “At that time, each member of the House represented about 34,000 residents. Since then, the House has more than quadrupled in size, with each member now representing about 21 times as many constituents.”

President Obama will transmit the apportionment counts to the 112th Congress during the first week of its first regular session in January. The reapportioned Congress will be the 113th, which convenes in January 2013.

Beginning in February and wrapping up by March 31, 2011, the Census Bureau will release demographic data to the states on a rolling basis so state governments can start the redistricting process.

Article I, Section 2 of the U.S. Constitution calls for a census of the nation’s population every 10 years to apportion the House seats among the states. The 2010 Census is the 23rd census in our nation’s history.


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Granholm Vetoes Principle Residence Bill Benefiting New Homebuyers

Governor Jennifer Granholm, Michigan’s lame duck Governor, in her final days in office had an opportunity to pass a bill beneficial to new homeowners across the State.  Instead, she chose to veto Senate Bill 77 (aka SB 77) yesterday on the 21st of December. 

Governor Jennifer Granholm

The bill has not gotten much press coverage, and certainly was not one of the most high profile pieces of legislation coming from Lansing recently, but it was perhaps the most significant bill that would have been of benefit to new home buyers in the coming years ahead. 

SB 77 began development in January of 2009, and went through several changes in committee and passed both the house and Senate on December 3rd, and it was presented to the Governor on December 15th.  The bill provided for changes in the filing of the Michigan Principle Residence Exemption, which currently homeowners can file for once a year in May.  

The Principle Residence Exemption (also known as the Homestead Exemption) essentially gives a tax break in favor of homeownership on property taxes, and reduces ones property taxes annually by approximately 40%.   

Under current law, if you bought a home in June, and the principle residence exemption

On December 21st, Governor Granholm Vetoed SB 77.

 was expired, you can not renew it until the following May.  That means than new home buyers are required to pay the full property taxes on their new home for one year.  This difference in property taxes can often mean the difference in whether they can afford the monthly payments or can qualify for the home with their lenders guidelines. 

The new bill proposed changes to the law that allowed for homes in the foreclosure process to allow a bank or credit union to file a form that retained the principle residence exemption for a period of 3 years.  Because a great many homes on the marketplace are foreclosures, this would allow a new homeowner purchasing a foreclosure to retain the homestead exemption if they purchase the property. 

With Governor Granholm's veto of SB 77, relief for home buyers acquiring homes with an expired priciple residence exemption is halted.

Additionally the language of the bill covering homeowners who perhaps moved and are trying to sell their home that read: “If an owner is eligible for and claims an exemption for that owner’s current principal residence, that owner may retain an exemption for not more than 3 tax years on property previously exempt as his or her principal residence if that property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose by filing a conditional rescission form prescribed by the department of treasury on or before May 1 with the local tax collecting unit.” 

The Michigan Association of Realtors had hopes that the Governor would sign the bill, as it clearly benefited homebuyers, and the general consensus on the hill in Lansing was that it would be favorable to the Governor.  Apparently it was not, and she chose to veto the legislation on December 21st.  You can see the progress of the bill here. 

I will refrain from commenting on Governor Granholm’s decision in this matter.  However, I will note to homeowners that in January we have a new Governor, Mr. Rick Snyder.  There will also be a lot of new faces in both the State House and Senate, so perhaps this issue will be brought through the process again under his administration.

Perhaps under a new administration in Lansing starting in 2011, Michigan home buyers will be able to see some relief with new legislation surrounding the Principle Residence Exemption.


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Selling Your Home Quickly in Battle Creek, Michigan

Selling your home quickly in Battle Creek, Michigan or the surrounding Southwest area can be challenging in an uncertain market.  However, despite what you hear from the news media, people are still buying homes. 

Selling your home quickly means working with an experienced Realtor.

In fact, if you are seriously interested in selling your home quickly in Battle Creek, Michigan or in the area, it is important to remember this basic rule: People still need to live in homes.

So the media and Washington can drag on, and on about how bad the economy is, and the real estate market, but there is no escaping the truth that people still want to live in homes.  So that makes the product of ‘homes’ still in demand, even if under different conditions. 

In order to accomplish selling your home quickly in Battle Creek, Michigan it is important that you consult and work with a local Realtor that knows the market area, and especially one that has the attitude that selling a home is possible despite all the noise to the contrary. 

Once you have that professional, the next thing you need to address is yourself.  Yes,

Selling your home quickly in Battle Creek Michigan involves being willing to confront what the market conditions are, and make sensible decisions.

 yourself.  You might need to change old ideas in order to accomplish the goal of selling your home quickly in Battle Creek, Michigan. 

The first realization you may need to come to is that you might not have any equity in the home.  A lot of sellers have to confront this.  Some even have the condition where they owe more on the home than market value.  When this happens, one has really three choices: Sell the home for market value, and bring cash to the closing table for the difference.  Short sell the home, and hope the bank will accept a lower settlement after what is often a long negotiation process. 

Finally, your last option is to rent the home and turn it into an investment property.  So sometimes when one wants to get out of their current home, and you are interested in selling your home quickly in Battle Creek, Michigan, it might be a better option to rent it out.  For more advice on selling your home in Battle Creek, click on this link and read more on my other blog. 

If you would like help with selling your home, give me a call at 269-441-8182 or visit my website at: www.michaeldelaware.com and contact me through there. 

Sometimes one has to consider renting the home for a few years in order to move on. Knowing market value can help with this decision.


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Buying a Home on Land Contract in Michigan

Buying a home on land contract in Michigan is often a route those with a troubled credit history will explore.  To have the desire to buy a home, and then have the disappointment of having a poor credit history which results in a denial from a lender is not often easy to experience.

Buying a home on land contract may be a good choice if you have poor credit, but good income and can offer the seller a sizeable down payment.

Buying a home on land contract in Michigan

is often sought as an alternative to taking to the time to repair ones credit in order to receive lender financing.  What a buyer must realize in buying a home on land contract in Michigan is that one can work with a seller in most cases with the poor credit history, but one must be able to demonstrate strengths in other areas in order to have the seller serious consider you as a candidate.

For one, you must be able to demonstrate income.  This income is usually in the form of money earned from work, but can be other sources such as a pension, structured settlement or in some cases government assistance.

However, with government assistance you most likely will be required to show evidence of this payment program, and length of time you will be receiving it, as a land contract is generally a long term commitment and short term government assistance alone is not enough to substantiate a stable and reliable income source.

Therefore, as with any income, one should also expect to not only demonstrate income, butUnderstanding Land Contract Homes: In Pursuit of the American Dream length of employment, and stability of the income line.  Buying a home on land contract in Michigan also requires one put a down payment.  This can vary, but most sellers I work with as a Realtor I encourage to try to get at least 10% of the purchase price, and in some cases more, depending on the sales price.

The reason for this is it makes the buyer come forth with a commitment to the long term purchase of the home, and a buyer who puts down a large down payment is less likely to default on the contract down the road.  So essentially anyone interested in buying a home on land contract in Michigan should realize that the lower a down payment, the more risk Land Contract Homes for Investorsthe seller is taking on, and the higher the down payment, the less risk there is for the seller.  So, one way to overcome a poor credit history is to offer the seller a sizeable down payment along with demonstrating ones income sources.

For more information on buying a home with a land contract, contact me at: 269-441-8182 directly or through my website at: www.michaeldelaware.com.  One can also gain more information on the subject of Land Contracts by downloading my eBooks in Kindle format now available on Amazon: ‘Understanding Land Contract Homes: In Pursuit of the American Dream‘ and ‘Land Contract Homes for Investors’.

Sellers will lose confidence in a prospective buyer if reliable income cannot be demonstrated, or the down payment offered is too small.


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Rural Properties and the American Dream

Rural properties seem at times to be interwoven in the fabric of the American Dream.  So many times I receive phone calls from people that are seeking to buy their first home, and many times they originate they want to be more out in the country and have some land. 

Perhaps there is still a ripple of the explorer or pioneer in all of us, and this has a lot to do

Rural properties have long been an attaction for first time home buyers.

 with rural properties and the American Dream.  There are certain types of buyers that were raised on a farm, and are seeking to get into the business themselves.  This might be classified as a business minded buyer.  What I most often run into is the first time home buyer who has their vision of rural properties and the American Dream all ties in together. 

The new prospective home buyer is seeking the rural setting for peace and quiet and privacy most often.  There are a few things in today’s real estate market that make this type of property more affordable, and one of those key factors is the USDA Rural Development loan program for single family homes. 

Rural properties offer a sense of peace and quiet that one does not often have in the city.

It allows a first time home buyer to purchase a home with 100% financing, and no down payment.  It also offers a low interest rate that makes it affordable.  The property must qualify in terms of location as a rural property in order to be made eligible for this financing, and so the official USDA maps must be consulted to see if the home is located in a defined rural area. 

Working with an experienced Realtor in this program can help you identify properties that qualify for this program and exclude those that do not in your home search, if that is the loan program you are seeking to use. 

Embracing rural properties and the American Dream most often means the home is somewhat removed from urban areas, and quite often is on its own water supply through a well, and its own sewage disposal system called a septic.  These systems will have to be inspected as part of the loan approval process on USDA Rural Development.

If you would like more information on rural properties in Southwest Michigan, contact me directly at: 269-441-8182 or contact me through my website at www.michaeldelaware.com.

Rural homes are interwoven into the fabric of the American Dream.


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2010 US Census results to be released by December 31st

In 2010 the US Census was conducted, and you may recall a few months ago filling out a questionnaire that you received in the mail or had someone come to your house and ask you some basic questions.  This was the decennial or ‘Every Decade’ count of the US resident population of our fine country.

The U.S. resident population includes the total number of people in the 50 states and the District of Columbia. The resident population of the United States on April 1, 2000, was 281,421,906, an increase of 13.2 percent over the 248,709,873 counted during the 1990 Census. This data will be released by the Census Bureau before December 31, 2010.

I have taken the following information from the US Census Bureau website, about the 2010 Census:

“Apportionment” is the process of dividing the 435 memberships, or seats, in the House of Representatives among the 50 states based on the population figures collected during the decennial census.

The first decennial census was conducted in 1790 and has been taken every ten years as mandated by Article I, Section 2 of the U.S. Constitution. Since the first census, conducted by Thomas Jefferson, the decennial count has been the basis for our representative form of government as envisioned by our nation’s Founding Fathers. In 1790, each member of the House of Representatives represented about 34,000 residents. Today, the House has more than quadrupled in size, and each member represents about 19 times as many constituents. In 2000, each member of the House of Representatives represented a population of about 647,000.

The apportionment population consists of the resident population of the 50 states, plus the overseas military and federal civilian employees and their dependents living with them who could be allocated to a state. The populations of the District of Columbia and Puerto Rico are excluded from the apportionment population because they do not have voting seats in the U. S. House of Representatives.

The first population counts from the 2010 Census for the nation and states, along with the apportionment totals, will be released by December 31, 2010. The apportionment totals are calculated by a congressionally defined formula in accordance with Title 2 of the U.S. Code.

Article 1, Section 2, of the United States Constitution states:

“Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers…The actual Enumeration shall be made within three Years after the first Meeting of the Congress of the United States, and within every subsequent Term of ten Years, in such Manner as they shall by Law direct.”

Therein lies the primary mandate of the U.S. census, apportionment of the House of Representatives. Since that first census in 1790, five methods of apportionment have been used. The current method used, the Method of Equal Proportions, was adopted by congress in 1941 following the census of 1940. This method assigns seats in the House of Representatives according to a “priority” value. The priority value is determined by multiplying the population of a state by a “multiplier.” For example, following the 1990 census, each of the 50 states was given one seat out of the current total of 435. The next, or 51st seat, went to the state with the highest priority value and thus became that state’s second seat. This continued until all 435 seats had been assigned to a state. This is how it is done.

Another major use for decennial census data is for geographically defining state legislative districts, a “redistricting” process that begins in 2011. The census data allow state officials to realign congressional and state legislative districts in their states, taking into account population shifts since the last census and assuring equal representation for their constituents in compliance with the “one-person, one-vote” principle of the 1965 Voting Rights Act.

 Soon, by the end of December, we will know the results of the 2010 Census.


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When the lights go out in Michigan during winter…

When the lights go out in Michigan during the winter, it can be a dangerous time.  I am talking about the unexpected power outage.  Now most any area of the country has experienced a power failure now and again. 

Most rural homes are on a well and septic system in Southwest Michigan.

I remember the Fourth of July weekend in 2008 when my neighborhood was without power for four days.  It was brutally hot at night, and we had to empty our refrigerator and save what food we could by taking it to my step-daughters apartment on the other side of town. 

We lived by candle light at night, and played a lot of cards.  When the lights go out in Michigan during the winter it is a different story altogether.  The severe danger is frozen pipes.  The first best course of action is to immediately set all of your faucets to dripping or when in doubt, a slow drizzle. 

If you have a fireplace, take advantage of it and get your fire going.  Being in the city, when a power outage occurs in winter, it usually is very short lived.  The people that have the most trouble when the lights go out in Michigan during the winter are those that live in the rural areas, and have well water. 

Well water requires electricity to operate the pump, and if you are in extreme freezing

Winter in Michigan requires a back up plan in case of a power outage.

 conditions, dripping the faucets may not be the only solution necessary.  It is advisable that people that live in a rural area own their own gas powered generator for just such an occasion, as power outages in rural areas are known to take longer to be restored than in urban areas. 

The main reason is that the power companies tend to focus on restoring power to the largest groups of people first.  Rural locations typically have lower population levels, so they can experience longer delays.  If you have no generator, it would be good advice to drain the water heater, and throw anti-freeze in the drains and toilets as some basic steps to saving your plumbing. 

Another option a lot of rural homes include in their planning is a wood burning back up heat system, like a fireplace or stove that allows them to heat the entire house.  This can offer great energy saving benefits, as well as security from damaged plumbing in the event of a prolonged power outage in winter. 

When the lights go out in Michigan during the winter, it can sometimes be a scary thing, but with taking some precautionary planning steps, it does not have to be so bad. 

Winter in Michigan is beautiful, but being alert for how to act during a power outage is important to prevent damage to your property.


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Buying A Home with a VA Loan in Southwest Michigan

Buying a home with a VA loan in Southwest Michigan is a great choice for buyers who qualify.  Veterans Administration (VA) loans allow a US military veteran to purchase a home with 100% financing, requiring no down payment.  The program offers a low interest rate, which makes it an appealing loan. 

VA Loans are a great first time home buyer program.

There are some other interesting features about buying a home with a VA loan in Southwest Michigan, and that is it allows for the seller to pay up to 4% in closing costs for the purchase of the home.  Many times, if the purchase price is above $100,000 this covers a majority if not all of the required closing costs. 

When the sale value is in a lower range, the buyer would need to bring the difference to closing.  Certain counties have requirements regarding buying a home with a VA loan in Southwest Michigan.  One of these is Calhoun County for example, and they require that a pest inspection be done on the home, and it be paid for by the seller. 

Other counties in the region may have similar requirements, from county to county.  

VA Loans are a great benefit for veterans.

 Barry and Eaton Counties require that a passing well and septic inspection by their combined health department accompany any transfer of ownership of a property, but this is not loan program specific. 

All in all, buying a home with a VA loan in Southwest Michigan is a great first time home buyer program for those that qualify, as it allows a buyer to get into a home without a lot of expense out of pocket.  The home itself does need to have an appraisal that is done by a certified VA appraiser, and the home has to meet VA standards to qualify for the loan. 

For more information on buying a home with a VA loan in Southwest Michigan, including getting connected with a lender experienced in the program, call me directly at: 269-441-8182 or contact me through my website at: www.michaeldelaware.com.


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Winter in Southwest Michigan

Winter in Southwest Michigan is a unique time of year.  Some aspects of our change of lifestyle with this shift in the season effects many industries, including Real Estate.  An outsider might assume that winter in Southwest Michigan or in Michigan period must mean a slow down time for the economy, etc. 

Winter in Southwest Michigan is a time of activity.

Perhaps this is a Southern perspective of the Northern States, believing that we hibernate in our dwellings, and huddle near a roaring fireplace and do not start moving again until spring.  I know when I lived in the South, and I would encounter a Northerner, discussions would lead to the harsh winter climate and my perspective was such. 

However, having lived now in Michigan for 10+ years, I can tell anyone that this perception is quite false.  In fact, I would say the opposite is true.  Spring and summer in the North tend to be a distraction, and I find that most people get back to focusing on the business of living during the winter in Southwest Michigan. 

The colder weather tends to bring consistent gray skies, colder days, and shorter daylight.

Winter is a great time to buy a home.

  We find ourselves compressing more into our shorter days.  As a Realtor in Southwest Michigan, I find myself compressing more time for showing homes to clients into the shorter daylight hours, and processing administrative duties during the evenings. 

I find I often write more contracts after dark, or and show homes during someone’s lunch hour, or weekend.  The interest in improving their lives increases when weather gets colder and snow is on the ground. 

Renters look at their drafty rental home, and look into to becoming homeowners.  Families with children off school for the summer, are suddenly back to business of making changes during the winter months when the kids are in school.  Summer in Michigan sends people outdoors to enjoy camping; boating and golfing and leisure time become a focus. 

In the winter in Southwest Michigan, as a Realtor that services several counties, I find people are more active than less active, and usually more serious about buying a home.  So if you are looking for a home in Southwest Michigan, and would like to get a great deal, contact me through my website at: www.michaeldelaware.com or call me direct at: 269-441-8182.

Winter in Southwest Michigan is a great time to sell a home, as the buyers are more serious.

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