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7 Key Benefits of Downsizing

Posted on by Hometown Development

If you’re considering selling your large home to move into a smaller one, there are many advantages to living a cozier life. Let’s take a look at several benefits of downsizing you may not have thought about.

#1 Increased Capital

Starting with one of the most important benefits of downsizing, when you sell a larger house to buy a smaller one, you’ll likely have money to spare which can be used to pay off debts or invest in your future. With a smaller home, you’re also likely to have a smaller monthly mortgage payment, so you can enjoy the savings and use them toward something important to you.

#2 Reduced Costs

When you downsize, you can reduce your utility costs and living expenses by living in a smaller dwelling. Not only is there less house to maintain, but you’re also saving energy to power and heat a smaller home. Reduced square footage equals a reduction in energy costs, which not only improves your carbon footprint, but means serious savings for you.

#3 A More Manageable House

Another of the benefits of downsizing to a smaller home is more time for you and your family. Smaller homes require less upkeep, which means less time stressing about when you’re going to do chores, and less time doing chores when you get around to them. When you have a smaller house to take care of, you have more time to do other things that are more important to you — time to pick up that new hobby, spend time with your family, or get out and see more of the world.

#4 More Opportunity to Travel

A larger home ties you down with upkeep, security concerns, and general stress. When you downsize, it frees up your time and energy for other pursuits, like traveling. In a smaller house, you can spend less time worrying about housework and take that road trip you’ve been dreaming about. 

#5 A Happier Family

Downsizing can lead to a happier family dynamic. Living in close quarters encourages the family to spend more time together in communal spaces like the living room and kitchen. Rather than withdrawing to their own corners of a large house, family members are forced to spend time together — for the better. Although it can take a little adjusting at first, one of the major benefits of downsizing your home is a focus on gathering the family to eat, chat, and enjoy one another’s company.

#6 Effective Budgeting

Did you know that one of the benefits of downsizing is that it can help you stick to a budget? If your resolution is to keep your spending in check, downsizing can help you do just that. With a smaller home, you will enjoy reduced monthly expenses including a more manageable mortgage payment, and lower utilities. Also, since you don’t have extra space to fill with furniture and things, you’re less likely to spend the money on things you don’t need, and more likely to get creative with storage and multipurpose items.

#7 Something New

Downsizing your home is a great way to start the next chapter of your life and try something new. Whether your kids have grown and moved out of the family house, you’ve just gone through a divorce, or you’re just ready for a new adventure, you can start your new life in a smaller home and embrace the benefits of downsizing.

Thinking about downsizing, but stressed about the prospect of preparing a home for sale? Downsize without the hassle — talk to the team at Hometown Development about your options for a simple, fast home sale.

How Does a Second Mortgage Work?

Posted on by Hometown Development

Second mortgages are a type of lien used on a property that is already attributed to a loan. They can be beneficial tools for some homeowners and a huge risk for others. If you’re considering a second mortgage on your home, it’s important to be prepared for what it means for your home and your financial future.

Here’s everything you need to know about a second mortgage, including what it is and how a second mortgage works.

What Is a Second Mortgage?

A second mortgage, similar to a traditional mortgage, is a loan that is taken out against your home as collateral. Since it is taken out after the purchase loan, it’s called a second mortgage. A second mortgage is also second in line to be repaid if your home is sold in the foreclosure process.

Some homeowners may be interested in taking out a second mortgage if they need to free up money to pay for things like unexpected repairs, bills, or fees. While taking out a second mortgage may be an option for many homeowners, it also comes with risks that are important to understand before making this financial decision. 

Let’s look at how a second mortgage works, some of the pros and cons of this type of loan, and some other options that may work for you if a second mortgage doesn’t feel right. 

How Does a Second Mortgage Work?

A second mortgage works by borrowing based on the home equity you have accrued. Home equity is the value of the home you own. When you have a mortgage on your home, you don’t technically own all of it, so the part that you do own (equity) is the part of the mortgage you have paid off. Keep in mind, this doesn’t include interest, which makes up a significant portion of your mortgage payment.

How Do You Build Home Equity?

Equity can be accrued in a few ways. First, if your home’s value increases over time, so does your equity. This can happen if you make improvements to your home, or the real estate market in your area becomes more lucrative and your home’s value appreciates. Also, when you make payments on your mortgage, you will own a larger percentage of your home, so the total equity you have will increase. 

Similarly, if your home’s value decreases over time or you take out more loans against your home (reducing the percentage you own) your home equity decreases.

What Does a Second Mortgage Look Like?

When your lender grants a second mortgage, it will typically be a percentage of your home equity (on average, 20 percent). The second mortgage can take a few different forms. It can either be granted as a lump sum or a revolving line of credit.

Second Mortgage Lump Sum

The home equity loan can be given as a lump sum for you to spend as you wish. Second mortgages can be used in an almost infinite number of ways – to pay for repairs to your home, pay off credit card debt, or pay tuition fees. When you receive the lump sum, you will begin making monthly payments toward resolving the debt, with interest of course. This is an additional payment to that of your “first” mortgage, or purchase loan.

Second Mortgage Line of Credit

A home equity line of credit works similarly to a credit card, your loan amount is stated as the credit limit and you can borrow against that amount. Whatever you borrow is what you pay interest on and repay — so if you only use 5,000 of the 10,000 limit, you will make payments on the 5,000. You can make as many withdrawals as you want up to the credit limit. Once the borrowed amount is repaid, you can withdraw the full 10,000 limit again.

Pros and Cons of a Second Mortgage

While a second mortgage can free up your home’s equity into funds you can use right now, it could put you in a difficult financial position. Before taking out a second mortgage on your home, consider the pros and cons of this important decision.

Pros of a Second Mortgage

  • Lower interest rates than credit cards: due to the high value of your home, your interest rates for a second mortgage will likely be significantly lower than your credit card interest rates. For this reason, many people use a second mortgage to pay off their credit card debt, and then repay the second mortgage over the loan term.
  • Flexible uses: With a second mortgage, you are not restricted to using the loan amount in any way. You can spend the money on almost anything — as long as you’re able to pay it back with interest over the agreed period of time.
  • Higher loan amounts: A second mortgage allows you to borrow more than you could usually get from a loan without using your home as collateral. Because homes are typically worth a significant amount of money, there is more collateral to borrow against, giving you a higher loan amount.

Cons of a Second Mortgage

  • Higher interest rates than refinancing: Because there is less collateral than your original home loan, second mortgage interest rates will be higher than those of your original mortgage. If refinancing isn’t an option, you may still be able to take out a second mortgage.
  • Financial Strain: A second mortgage requires an additional mortgage payment to your current monthly bills, which could put a strain on your finances, especially if you’re taking out the second mortgage to cover previous debt, or find it difficult to meet your original mortgage payments.
  • Higher risk of foreclosure: If you stop making payments on any of your mortgages, you enter the foreclosure process. With the additional strain of a second mortgage, there’s a higher risk of foreclosure. This is why it’s not a good idea to use a second mortgage to pay for living expenses or costs — even for your first mortgage — as this method of spending is not sustainable and will likely result in losing your home.

Alternatives to a Second Mortgage

Is a second mortgage really the best way to accomplish your goals? If the risk of a second mortgage isn’t appealing to you, you may still have other options available for freeing up some extra cash flow from your home. As an alternative to a second mortgage, you could discuss refinancing your mortgage with your lender, or consider selling your home to resolve debt, get out of a troublesome mortgage, or free up the available capital locked in your home.

Refinancing Your Home Loan

When you refinance your home loan, you discuss your loan terms with your lender. They may be able to repackage your home loan with lower interest rates, or a longer loan term, depending on your needs. With a refinanced loan, the new loan takes the place of your existing mortgage. This is a great way to save a little money without having to assume the risks of a second mortgage.

Sell Your Home to a Real Estate Investor

If refinancing isn’t an option, or you’re having trouble making payment on your original purchase loan, a second mortgage isn’t going to help you resolve your financial problem. The best thing you can do with a home you cannot comfortably afford is to sell it and look for another that better fits your financial needs. When you sell your home, the sale will pay off the original mortgage, and you will have cash left over you can use to purchase another home, or pay off other debts or costs. 

For a simple, hassle-free sale, you can sell your home to a real estate investor. When you sell to a real estate investor, they will assess your home based on its current condition and make you a fair cash offer based on its market value. With this type of sale, you don’t have to make any repairs, prepare your home for the market, or hire a Realtor. Best of all, in as few as five days, you could have your home sold and liquidate the equity locked in your home for use however you see fit.

If you’re considering taking out a second mortgage on your home, it’s important to take time to really think about it. If your finances might be better served by getting out from under a troublesome house, the Hometown Development team can help. Give us a call to learn more about your options today.

How to Sell Rental Property With or Without Tenants

Posted on by Hometown Development

If you have a rental property to get off your hands, it can be complicated to sell quickly. The sale process can seem even more complex if you still have tenants occupying some or all of the units on the property. While selling a rental property without tenants is more straightforward, both are possible with the right buyer. Let’s talk about how to sell rental property with or with or without tenants — without the hassle. 

 

How to Sell Rental Property Without Tenants

If you need to sell rental property that’s vacant, the process isn’t too different from a typical property sale. You’ll go through the same steps of preparing the property for sale and listing it on the market, but you’ll be looking for the right buyer willing to take on an investment property — and all of the upkeep it requires. Decidedly easier than selling with tenants, prepare the property for sale, and find the right buyer looking for an investment property

In these situations, real estate investment firms make an ideal buyer for a rental property because they are actively looking for real estate investments, have the time and energy to devote to a new project, and have the capital available immediately to make you a fair offer and sell on your timeline. If you need to sell a rental property without tenants, sell to a real estate investor for a fast, hassle-free sale.

How to Sell Rental Property With Tenants

It’s no secret that it can be more difficult to sell a rental property with tenants. This is mostly because it takes just the right buyer for the sale. You also have to consider your tenants’ rights and try to make the sale easier for all involved parties. 

To sell a rental property with tenants, you’ll likely need to vacate the property before you can sell, unless you can find a buyer willing to take over the current leases. Let’s talk through a few of the options available to you.

Wait for Tenants’ Leases to Expire

If your tenants rent month-to-month, you could simply give them notice and the appropriate amount of time to vacate. Or, wait until the current lease term is up for the last tenant. However, if you need to sell now, you may not have time to wait 6 months or more for your tenants to move on their own. In that case, it’s best to be up-front with your tenants about your plans to sell, and hope that they will move out sooner. Or, you can try to convince them to move.

Convince Tenants to Move

Tenants with a fixed-term lease are entitled to fulfill the lease term and continue living at the property. If the end date of the lease is beyond the sale date, the buyer must take over the lease. However, if both the property owner and the tenant mutually agree to dissolve the lease, both parties can decide on a flexible end date.

The best way to go about this is to have an honest discussion with your tenants about selling the property. It’s important to actively communicate with your tenants throughout the process. This way they’ll feel involved in the process and be more likely to participate in making the sale a success for everyone.

Persuading your tenants to move cannot involve threatening behavior or a blanket refusal to maintain the property. Their rights clearly state they may continue to live on the property until the end of their lease, so the ball is in their court, so to speak. You may try to sweeten the deal for tenants to move early, such as offering to pay moving expenses or the security deposit for their next apartment, but ultimately it is their decision.

Sell Rental Property to Buyer Who Will Honor Tenants’ Leases

The final option is to find a buyer willing to take over the current leases of your tenants. Under the new owner, tenants will maintain their current lease agreements. Once the lease term has expired, it’s up to the new owner whether they want to renew the lease with the tenant or not. 

This option suits tenants because they won’t be required to vacate, but can make it more difficult to find a buyer willing to take on the extra responsibility. If they want to schedule renovations, they may have to wait until the tenants move on their own.

Sell Rental Property to a Real Estate Investor

If you need to sell rental property with tenants, consider selling to a real estate investor. A real estate investor has the time and capital to sell according to your timeline and will work to find the best solution for you and your tenants. They care about your situation as well as your tenants’ rights and will help the sale go through with minimal disruption.

When you sell rental property to a real estate investor, you don’t need to worry about making repairs and updates to the property before selling. You don’t have to work with a Realtor, or host open houses. You don’t have to wait weeks or months to find the right buyer for your property. Real estate investors can help you sell rental property fast for cash in a hassle-free sale that works for you and your tenants.

Need to sell your rental property, but not sure what it means for the current occupants? Talk to Hometown Development. We can help make selling your property easier for you and your tenants.

How to Sell a House by Owner: A Step-by-Step Guide

Posted on by Hometown Development

Selling a house by owner is a very attractive option for many homeowners. Some of the benefits include the flexibility to sell on your own terms and timeline, the ability to fix what you want — or not make any repairs or changes before you sell, and, possibly most importantly, the fact you don’t need to work with a Realtor, nor pay their commission once the house is sold.

Selling a house by owner comes with its own challenges, however. You’ll be left to navigate the fluctuating real estate market on your own without anyone to help you get the word out about your home, show the home to potential buyers, negotiate offers, and help the sale close smoothly.

If you’re determined to sell the house yourself, here are the steps you’ll need to take to make that happen efficiently. 

Steps to Selling a House by Owner

Selling a house by owner can be complicated, depending on how much work your home needs before it’s ready to sell and your expectations from the sale. To get started, you’ll need to establish a baseline for what your home is worth, so you can determine the best listing price. 

Step 1: Determine Your Home’s Market Value

Finding the market value of your home will help you determine how much you can expect from the sale. There are a few ways you can go about this:

  1. Talk to a real estate agent. You can ask a Realtor to walk through your home and help you estimate its value. Keep in mind, you may get a biased response as they’ll want you to list with them for a higher price and commission.
  2. Get an appraisal done. A formal appraisal will provide the most unbiased, accurate estimate of your home’s value. However, these assessments can cost up to $500.
  3. Make an educated guess. If you do your market research of similar homes in your area and their average sale prices, you may be able to ballpark your own home’s value. In your comparison, consider special features or recent repairs like a pool or brand new roof that may make other homes more desirable and therefore able to fetch a higher sale price.

Step 2: Prepare for the Market

Once you have a value as a starting point, you can start the preparations of listing your home for sale. This is when you go through your home and decide what needs to be fixed, changed, or upgraded to make your home market-ready. These could be small fixes like cosmetic changes to the paint colors or flooring, tasks like a deep cleaning of your home’s carpets, or expensive tasks like roof or foundation repair.

Whatever you decide to do to your home in this stage should be to help it become ready to be sold or sell for a higher price. There’s no point in pouring money into projects you won’t earn back in the sale price — unless they’re essential to potential buyers —  such as any damage that makes the home unsafe or would be an immediate expense for the new owners (mold, leaks, damaged wiring/plumbing, etc.).

Preparing your home for sale also includes making your home look more aesthetically pleasing to potential buyers. A thorough cleaning, sprucing of landscaping and exterior of the home, and general decluttering of your home are all important steps to selling a house by owner.

Step 3: Get Your Home Out There

Once your home is ready for sale, one of the most important steps to selling a house by owner is to get your home out there for buyers to find. Unfortunately, this is often the most difficult stage if you’re selling your home yourself. To market your home for sale by owner, here are a few ways to get the word out:

  • Word of mouth: tell your friends, share photos on social media, encourage others to share the news with their network.
  • Listing online: Post information and photos of your home to real estate sites like Zillow and Realtor.com.
  • Print Media: Create brochures and flyers with information about your home sale and post them in visible places.
  • Put up a sign: Having a physical sign in front of your home will be a basic, but very effective tool to drum up interest in your home.
  • Host an open house: Even if half the attendants are curious neighbors and friends stopping by to look around, they might keep your home in mind if they know someone looking.

Step 4: Wait

In between open houses and showings, all you can do is wait for an offer. Unfortunately, when selling a house by owner, you’re at the mercy of the housing market. If your house has been on the market for a while, you may consider lowering the price or making some other improvements to the home to make it more attractive to potential buyers.

Step 5: Negotiate an Offer

If you do receive an offer on your home — congratulations! This is a big deal, but you’re not done yet. If the offer is well below your asking price, you may need to negotiate with the buyer. The buyer may have other conditions to their offer, such as the completion of certain repairs or even for the seller to cover the closing costs. 

This is often a situation where a Realtor can come in handy to field offers and see if a buyer is actually interested in purchasing — and willing to negotiate. If you’re negotiating with buyers yourself, be careful, as being completely inflexible may scare offers away.

Step 6: Close on the Sale

Once the sale price is settled, a written sales contract will be drawn up and signed by both parties. The contract includes the final sale price, conditions of the sale, and where and when the closing will take place. A closing agent leads the legal closing process, and you will need to follow the process and submit documentation when required. 

If the buyer is taking out a mortgage to purchase your home, the closing process can be even more tense. Many lenders have certain conditions that must be met before the loan can be issued. If the financing for your buyer falls through for any reason, the sale won’t be able to go through and you’ll be back to square one.

When you sell your home by yourself, you have to be involved in every step, which can be time consuming, expensive, and stressful. If you want to skip this lengthy and involved process, but still sell your home by owner, you have another option: you can sell your house fast for cash to a real estate investor.

Sell a House By Owner to a Real Estate Investor

When you sell to a real estate investor, you get to skip the inconvenient parts of preparing your home for sale like working with a Realtor, and sell your home quickly and hassle-free. Selling to a real estate investor means:

  • No repairs, changes, or upgrades before selling your home
  • No Realtors, listing fees, or open houses
  • No waiting for a buyer, or waiting for financing to come through

When you sell to a real estate investor, you can effectively simplify the steps to selling a house by owner into one. They will make you an offer for your home in its current condition for a cash offer that’s based on its real market value. Also, many real estate investors prefer to work quickly, meaning you can have your home sold in as few as five days.

Selling a house by yourself can be a hassle. If you’re looking to avoid Realtor fees, but you don’t want to go through the whole process of selling a home traditionally, a cash offer might be a great option for you. For your no-obligation offer, reach out to the team at Hometown Development.

How Do I Stop a Property Tax Foreclosure?

Posted on by Hometown Development

Property tax foreclosure is a complicated situation to be in. Once the foreclosure process has begun, it can seem like there’s no way to get ahead of it. Fortunately, you can stop property tax foreclosure and understanding how it works is critical to saving your home and your credit.

 

What is Property Tax Foreclosure?

Property tax is a fee you pay the county you live in, based on the value of your property. This tax must be paid annually. If you fail to pay your property taxes, the property tax foreclosure process takes three years to complete, after which you may lose your home and significantly damage your credit.

To better understand how to stop property tax foreclosure, let’s start by taking a look at how the property tax foreclosure process works.

Property Tax Foreclosure Process

If property taxes are not paid on time, the tax is considered delinquent and penalties are applied. After one year, if the property tax payment is not made or is incomplete, your property is placed on a preliminary forfeiture list

At this point, you can stop property tax foreclosure if you’re able to pay back the owed taxes and any associated fees and interest. Interest rates during the first year are at 1 percent per month, but they will go up to 1.5 percent after the first year. It will be easier to pay back the missed taxes if you’re able to pay them sooner, rather than wait — even if you can only make payments toward the owed amount.

After Year 2, the property is forfeited to the county treasurer. Forfeiture does not mean the same as foreclosure. You can continue to live in your home after the property has been forfeited. However, once you’re in the forfeiture stage, you can only pay back all the owed taxes in a lump sum in order to stop property tax foreclosure. This is a very difficult thing to do if you’re still struggling to pay back the taxes and accrued interest from the first year of delinquency. 

How to Stop Property Tax Foreclosure

Once we can assess where you are in the process, we can understand the best way to stop property tax foreclosure for your situation. If you’re facing forfeiture or property tax foreclosure you still have options to save your home: you can pay off all the owed taxes, or sell your home in order to stop property tax foreclosure.

How to Stop Property Tax Foreclosure by Paying Owed Taxes

To stop property tax foreclosure you will need to pay back the owed taxes. Depending on where you are in the property tax foreclosure process, you may either be able to spread out payments over a year, or you’ll need to make a single payment. If you don’t have the necessary funds right away, there may be emergency loans available to help you meet tax deadlines, after which you can pay back the taxes over a longer period of time.

Some taxpayers may be eligible to apply for deferment of property taxes. Eligibility requirements are steep, and only some low income, disabled, veteran, or elderly applicants may be permitted to defer taxes. 

Property tax deferment allows taxpayers more time to pay back the owed taxes. However, it cannot stop property tax foreclosure from moving forward once taxes are due.

Can’t Pay Your Property Taxes? Here’s How to Stop Property Tax Foreclosure

If you can’t afford to pay the property taxes and tax deferment isn’t an option, you will likely need to part with your home in order to resolve the delinquent taxes. Rather than wait for your home to go to auction, you can take control of your situation and sell your home on your own terms. Then, you can pay the owed tax and move on in a home you can better afford.

The advantage of stopping property tax foreclosure by selling your home is that you can avoid the severe hit to your credit that happens in a foreclosure. This puts you in a better position to rebuild your credit and financial status, so you can apply for a loan or purchase another home in the future.

How to Stop Property Tax Foreclosure by Selling Your Home

When you sell your home to stop property tax foreclosure, it’s important to complete the sale quickly. If you sell your home fast, you won’t accrue as much interest, so you’ll be able to pay off the tax and use the rest of the sale towards your next home.

To sell quickly, you can price your home competitively and wait for a buyer to find you, or sell to a real estate investor for a quick and hassle-free sale.

Price Your Home Competitively

When you sell your home on the traditional real estate market, it may take time to prepare your home for sale, work with a Realtor, and wait for a buyer to make an offer. Pricing your home competitively may entice a buyer to purchase your home in time to stop property tax foreclosure. Alternatively, if you don’t want to go through the process and hassle of selling your home this way, you can sell to a real estate investor.

Sell Your Home to a Real Estate Investor

Selling your home to a real estate investor is a great option if you need to sell quickly. Real estate investors will purchase your home as-is, meaning no preparation needed to get it ready to sell. They will make you a fair offer based on the market value of your home in its current condition. 

Also, because offers from real estate investors are often in cash, the closing process is simplified, so you can close the sale in as few as five days or on your own timeline. If you’re looking for a fast, simple option to sell your home to stop property tax foreclosure, this is it.

If your property is at risk of property tax foreclosure, now is the time to talk to Hometown Development. Foreclosures become final at the end of March, so there’s still plenty of time to find a solution. Let our team help.

10 Things to Know About Moving to Grand Rapids, MI.

Posted on by Hometown Development

If you’re moving to Grand Rapids, MI you may be new to West Michigan or the state, and not know what makes this place so special. Here are 10 things you should know when you’re moving to Grand Rapids, MI:

#1 Grand Rapids Offers Four Beautiful and Distinct Seasons

Grand Rapids, located in West Michigan, offers a pleasant climate with unique weather patterns. Lake Michigan, just 85 miles to the west, influences the temperature and precipitation of the region. It generates lake-effect rain and snow which converts Grand Rapids into a winter wonderland during part of the year, and tempers a warm and pleasant summer.

West Michigan is known for outdoor activities you can enjoy in each of its seasons, from gardening and golfing in the spring, to festivals and beach days on Lake Michigan, to fall hiking and apple-picking, to winter sports like sledding, skiing, and snowboarding.

#2 Grand Rapids is Walkable and Bike-Friendly

Downtown Grand Rapids has so much to offer. Great restaurants, bars, and shops are all within ten minutes’ walking distance. Many Grand Rapids residents commute by bicycle, as the city is designed to handle pedestrian and bicycle traffic safely. There are bike trails all around Grand Rapids that go along the Grand River, out to large parks, and even eventually reach the shore of Lake Michigan.

#3 Grand Rapids Has a Convenient Location

If you’re moving to Grand Rapids, MI you may have chosen this spot for its location. Living in Grand Rapids, everything that’s great about Michigan within reach. The city is full of amenities and things to do, but if you need to get out of town, there are many attractions a short drive away. The beautiful Lake Michigan is less than an hour drive away, making it easy to pack a picnic and head to the lakeshore any day to catch the sunset.

Grand Rapids is also an easy commute to the camping and outdoor recreation opportunities of Northern Michigan. It’s also a reasonable distance from the large cities of Detroit and Chicago. If you need to travel further, Grand Rapids has its own airport which is serviced by major airlines, both national and international.

#4 Grand Rapids Has a Lively Art Scene

Grand Rapids is a cultural hotspot in West Michigan, known for its galleries, art education and museums, theater and performance art, live music and concert venues. Van Andel Arena regularly hosts big names, such as Neil Diamond, Lady Gaga, and Kenny Chesney. Many other smaller venues around town feature touring artists and music groups. 

ArtPrize is an annual event in Grand Rapids that draws participants and spectators from all over Michigan and the Midwest. Participating artists create installations around Grand Rapids in late September and visitors vote for their favorites. $500,000 is awarded in prizes based on popular-vote winners in many categories.

#5 Grand Rapids Offers Many Employment Opportunities 

If you’re moving to Grand Rapids, MI in search of employment, you’ll find plenty of opportunities in this fast-growing metropolis. From working in the healthcare field, to technology and manufacturing, to jobs in the service industry, Grand Rapids has a lot to offer. The city is growing fast, so new employment opportunities are appearing all the time.

#6 Grand Rapids is Known for Great Health Care

Grand Rapids, MI is home to state-of-the-art hospitals and rehabilitation facilities. Many travel to Grand Rapids to seek out the best care at DeVos Children’s Hospital, recover at Mary Free Bed, study at MSU College of Human Medicine, or work in the Spectrum Health system.

#7 Grand Rapids is Surrounded by Beautiful Parks and Gardens

There are 1,200 acres of city-owned parks in Grand Rapids, MI. With endless opportunities to get outside and enjoy the fresh air and open spaces of the city’s parks and trails, it’s easy to stay active and healthy. Riverside Park, located north of downtown Grand Rapids, is a beautiful spot to take a walk by the river. There are also kayak and paddleboard rentals you can use on the river. 

Millennium Park has its own beach for kids to play, and also activity fields, and plenty of walking/biking trails that connect it to downtown. There are also great hiking trails at Aman Park and the Blanford Nature Center just west of town.

Meijer Gardens, located on the east side of Grand Rapids, is a beautiful 158-acre botanical garden that also contains a sculpture park, butterfly room, and amphitheater that features a regular calendar of live music during the summer. The manicured gardens with a huge variety of plants, flowers, and art, is a popular spot for weddings, family outings, and school field trips. 

#8 Grand Rapids is Known as Beer City, USA

If you’re moving to Grand Rapids, MI, you may be surprised to learn that it’s home to over 60 breweries, which earned it the title Beer City, USA. A few of the most popular spots in town are Atwater Brewery, Founders Brewing Company, and Brewery Vivant.

These establishments also craft their food menus with care to pair perfectly with unique brews for a great-tasting experience.

#9 Grand Rapids Has Excellent Shopping Opportunities

If you’re moving to Grand Rapids, MI, and need to shop for home furnishings, clothes, sporting goods, pet supplies, or anything else, you’ll find a huge variety of options around town. Downtown Grand Rapids will have a variety of boutiques and high-end stores. If you’re looking for great antique stores, explore the Eastown and Heritage Hill neighborhoods. Tanger Outlets is a short drive away and features expensive brand names for discounted prices. For everything else, visit the Woodland Mall, box stores, and car dealerships along the popular 28th Street.

#10 Grand Rapids Consists of Many Unique Neighborhoods

Outside of downtown, the neighborhoods of Grand Rapids create a sprawling, small-town feel. Each neighborhood has its own flavor, unique shops, restaurants, coffee houses, and parks. You’ll see people out and about walking with their kids and pets. If you’re moving to Grand Rapids, MI, there’s a neighborhood that’s perfect for your family. Whether it’s the historic Heritage Hill area, the more affluent East Grand Rapids, or the unique and hip Eastown, your family is sure to feel right at home in one of the many popular Grand Rapids neighborhoods.

Moving to Grand Rapids, MI? Hometown Development is always working to restore and renovate some beautiful houses in some of the most popular neighborhoods. Let us know what you’re interested in, and we can help you find the perfect home for you and your family.

How to Handle Selling A House and Buying In Another State

Posted on by Hometown Development

If you’re relocating to a different state, whether for work, family, or just a new start, you probably want to sell your home for at least two reasons:

 

  • To cover the costs of relocating, including buying another home and getting your life started somewhere new.
  • To avoid the costs and hassle of maintaining the old property, including property taxes and upkeep

The process of selling a house and buying another in a different state doesn’t have to be complicated, but it does depend on how you want the relocation to work. There are a few things you should know to handle the sale successfully.

What to Do When Selling a House and Buying Another in a Different State

Ideally, you would sell the old home the day you move and simply move into a new location, but it’s rarely that easy. Most likely, you’ll be faced with two realities: sell your home after you relocate, or sell it before.

Selling Your Home After Relocating

One option is to have a new home lined up, so when you sell the old home you can simply move and then sell the other one later. In this case, you would wait to sell the old home, and you risk having two homes at once, which could strain your finances in an already stressful time of change. Also, once you’ve begun your new life in a new state, you likely can’t or won’t want to commute back and forth to prepare the other home for sale, arrange showings, or negotiate offers for the old home.

Sell Your Home Before You Move

Another option is to sell the first home before you move, whether you’ve found your next home or not, and rent an apartment in your new location. This gives you time to learn the area you’re moving to, and you’ll have your finances in order when you find the right home for your next chapter. In either case, once you’re ready to sell your old home, you’ll likely want to take care of the sale quickly. You don’t want to wait months for your home to linger on the market, especially while it’s costing you money and patience to maintain.

How to Sell Quickly When Relocating

If you’re selling a house and buying another in a different state, you don’t have time to wait months to find a buyer for your old home and wait for a sale to go through — you want to sell your home ASAP. However, if the home needs fixing up or preparation before it’s ready to be listed on the market, you may not be able to do this before you need to move. Rather, you may find yourself commuting back and forth to fix up the old home before you can list it for sale. To avoid this, you can skip the preparations, repairs, and updates and sell your home as-is.

Selling Your Home As-Is

When selling your home as-is, you look for a buyer who will purchase the home in its current condition. There are a couple of ways you can successfully do this so that your home sells quickly: Price it competitively or sell to a real estate investor.

Price the Home Competitively

Pricing your home competitively shows buyers that you’re motivated to sell, so they’ll be more likely to make an offer. Although you might not be able to earn as much for the home as you could in a normal circumstance, a lower sale price will help the home sell quickly, which, if your goal is to get the extra home off your hands and move on, is a pretty good deal.

Sell to a Real Estate Investor

Selling your home to a real estate investor is another way to sell your home fast. Real estate investors prefer to close on home sales fast — often in as few as five days. Also, when you sell to an investor, you don’t need to make any repairs or changes to your home. You can sell your home in its current condition without the help of contractors, inspectors, or Realtors. A real estate investor will walk through the home with you, then offer you a fair price based on the home’s market value. In less than a week you can have your home sold and close that old chapter of your life, ready for whatever’s next. When you’re relocating, one of the best ways to set yourself up for success is to get that old home off your hands. Hometown Development can help you close in as few as 5 days, and we always make fair cash offers based on the market value of your home. Move on quickly and successfully! Give our team a call today for your no-obligation cash offer.

5 Ways to Invest in Real Estate without Buying Property

Posted on by Hometown Development

Investing in real estate is a great way to diversify your portfolio and expand your income sources. However, not everyone is interested in buying and flipping houses to rent out, or maintaining property and tenants. If you’re looking for how to invest in real estate without the commitment or hassle of buying property, here are 5 other ways to invest in real estate that offer just as reliable returns.

#1 Invest in a Development

When you invest in a development, you help to finance a developer’s vision of a community of homes and properties. You can choose a development company that matches your tastes and investment level, but the rest of the process is relatively hands-off. You don’t have to be involved in the minute decisions of building or maintaining the development but get to enjoy the income from your equity or debt investments. These real estate companies play an important role in local economies by creating jobs, and also provide solutions to the national housing crisis.

Risk Level

Many real estate investments present a moderate level of risk. Investing in a development has great potential for good returns. As long as costs of the development stay on track and the property values and housing market remain stable, your investment will remain low-risk. You could anticipate great returns if the values of the properties increase once development is complete. To risk losing money, the market would have to decrease significantly. Therefore, the choice to invest in real estate companies that develop property is fairly safe.

#2 Invest in Real Estate Investment Companies

Real estate investment companies do the work of finding properties in need of updates, make the necessary repairs, and flip them for rental or real estate opportunities. They also work with homeowners in need to find creative solutions to missed mortgage payments, foreclosure, and other debt problems, offering them a way out that saves their credit. The homes are then given the attention they deserve and brought to showcase the best of their character and charm. Real estate investors can improve communities and help struggling homeowners into homes they can comfortably afford.

Risk Level

The risk level of investing in these real estate companies is comparable to other real estate investments in that it is also tied to fluctuating housing markets. The success of the company depends on the customer’s ability to buy a home or find a mortgage with an affordable interest rate to purchase a home. However, because the homes these companies purchase are already in established neighborhoods with nearby amenities and are priced lower than new construction homes, they tend to sell readily and provide above average returns, especially when compared to investment in another real estate company.

#3 Invest in REIT Companies

Real estate investment trusts, or REITs, are another great way to invest in real estate without finding, financing, or maintaining property. REITs own or finance income-producing real estate. Their properties can be either residential or commercial, and generate regular profits which are shared with investors through dividends. When you invest in these real estate companies, you diversify your real estate investment portfolio with passive involvement. You can either invest through stock, mutual funds or exchange-traded funds (ETFs).

Types of REITs
  • Equity REIT: publicly traded on national stock exchanges 
  • mREIT or mortgage REITs: provide initial financing for income-generating real estate
  • Public non-listed REITs: registered with the SEC (Securities and Exchange Commission) but don’t trade on national stock exchanges
  • Private REITs: not registered with the SEC and do not trade shares
Risk Level

Publicly traded REITs are less risky because investors can easily research the companies to see their financial history and stability. They also have better liquidity, making it easier to sell shares.

#4 Invest in Home Construction Companies

Investing in home construction companies is popular as the housing market climbs, and interest and mortgage rates are low. As the economy tightens and interest rates rise, however, the rate people buy and build homes slows — and so will your investment returns. This investment type is also dependent on the availability of building supplies, contractors and other resources, which, if scarce, can delay the building process and prevent you from seeing consistent returns. Investment in home construction companies is a great way to diversify your portfolio without being responsible for a home or property. You can purchase shares of home building company ETFs or invest in a specific home building company directly. However, you should be aware this type of investment is best for investors with a tolerance for some risk.

Risk Level

Investment in home construction companies presents higher risks for those seeking short term investments and quick returns, but provides more moderate risks and better returns for long-term investment. Ideally, investors should hold onto shares for at least 10 years to allow for recovery from temporary losses that can occur as home values fluctuate. Price volatility due to the constant movement of the real estate market means this type of investment is sensitive to changes in the economic conditions of the country.

#5 Join a Real Estate Crowdfunding Opportunity

Investment platforms are a relatively new way to invest in real estate without buying property directly. On these platforms, you can invest in bigger residential or commercial property deals with others, as a crowdfunding effort. This is a way to invest in real estate companies that requires some capital, but much less than buying a property yourself. You can invest in singular projects or a portfolio of projects with all types of real estate from income-producing to development properties. Be aware that, because investment and crowdfunding platforms are new, they have fewer protections than traditional investment methods. And although the online services are easy to use, apps and websites for crowdfunding may have associated fees.

Risk Level

Investing through an online crowdfunding platform means many of the opportunities to invest in real estate companies are relatively new. Therefore, there’s not a lot of financial history available to review, and investors have to sign on with a higher risk for their investment. Also, since the assets are not liquid, they are more complicated to sell. If you’re looking for a way to invest in real estate long-term, crowdfunding may work well for you. It’s best for investors who won’t need to see returns soon, and can hang onto their investments for a greater return down the road. Crowdfunding opportunities used to invest in real estate can be useful to diversify a portfolio, especially if you have many equity investments. If you’re looking for a real estate investment that can provide passive income at above-average returns, Hometown Development might just be the option for you. Talk to one of our investment experts to see how a partnership with our real estate investment company could benefit you.

Selling the Family Home: How to Let Go of Your Family Home

Posted on by Hometown Development

The house where we grew up is important in our formative years and is the backdrop of many of our youthful memories. However, there comes a time when we have to say goodbye and part ways with these spaces. Selling the family home can be difficult, not only because of the emotional attachment to a home that’s been in your family for years, but also because preparing a home to sell on the traditional real estate market can be time-consuming, expensive, and frustrating — especially when you have other grown-up responsibilities and your own home to take care of. Fortunately, when it comes to selling the family home quickly and painlessly you have options. Let’s talk about how to make the process of selling the family home as easy as possible.

Pack Up the Family Home

When you first take ownership of the family home, whether you’ve inherited the property or taken it over from other family members, that first walk-through can be difficult. From getting distracted by memories to feeling overwhelmed by the work ahead, you likely need to prepare for an initial wave of emotion. This is an important time to reflect on what the home meant to you, and take an inventory of everything in the home. Work your way through the home and decide what can be sold or donated, or what you absolutely can’t part with. Go through the belongings with your siblings to make sure everyone is involved in these important decisions. Consider that even some extended family may have an interest in keeping some items, especially priceless ones like family photo albums or other keepsakes. Unclaimed furniture, clothing, kitchen supplies, or decór can be sold in an estate sale or donated to a local charity.

Selling the Family Home

Once you have gone through the home and divided up the important belongings, it’s time to start thinking about selling the family home. In these situations, it’s often better to sell the home quickly rather than hang onto it, because even the best childhood memories can be soured when you have to take care of property you no longer want. When it comes to selling the family home, you have a few options: You can either sell it on the traditional real estate market by working with a Realtor, or sell it in a quick cash sale to a real estate investor.

Sell on the Traditional Market

Before you can sell on the traditional real estate market you’ll need to assess the home’s condition, make any necessary repairs, consider upgrading parts of the home to make it more appealing, hire a realtor, and show the home to potential buyers. Traditional sales take time — especially for older homes that might need a bit of work, maintenance, or updating. If you want to sell the family home quickly, pricing it correctly is important. Understand that you can’t put a price on your memories. It’s special to you because of the people you shared the memories with, not the home itself. Even if you think the home deserves a high price, potential buyers won’t factor the good times you spent in the home into their decision. Pricing the home too high will make it more difficult to sell, and if you have to keep readjusting the price later, buyers may become more wary and your home will lose appeal. If you don’t want to deal with making repairs or maintaining the property during the selling process you may consider selling the home to a real estate investor.

Sell to a Real Estate Investor

When you sell to a real estate investor, you don’t have to wait through the long sales process. Real estate investors prefer to close on home sales with a cash offer in as few as five days. Investors will also purchase your inherited home in as-is condition, meaning you don’t need to worry about making repairs or updates to the home. They will walk through the home with you and make you a fair offer for its market value, no Realtors necessary. The advantage of selling the family home to a real estate investor is that they have the time and capital to give the home the care and repairs it needs. They can wait for the right family to move in to make new memories. Meanwhile, you can sell quickly for cash and move on.

Say Goodbye When Selling the Family Home

When selling the family home, it’s important to acknowledge the importance of the space to you and its place in your memories. On your final walkthrough, reminisce where you and your siblings opened presents during the holidays, the place in the kitchen where the family dog used to lie, where you would sit at the dinner table and tell stories over vegetables you didn’t want to eat, where you once backed into the garage door before you got your license — and remember that the characters of those stories are the key to the memories, not the setting. Rather than let an additional home become a stressful responsibility, sell the home and hang onto the memories you made there, instead. Realize that, although it may hold a special place in your heart, it’s not your house anymore — at least not in the same way. If you sell the home, another family can move in and enjoy the space. Parting with the property will be tough, but in the long run, it will save you time, money, and stress. If you’ve recently inherited a family home, and just aren’t sure what to do with it, the Hometown Development team can help. We’ll clearly explain all of your options so you can make the best choice for you, and your family. Give us a call or reach out online to learn more.

Can I Sell My House If I Have a Mortgage?

Posted on by Hometown Development

When you sell a house with a mortgage, the buyer’s funds should cover the rest of your loan, with a bit left over in profit for you. But, if your asking price is lower than what’s left on your mortgage, you may run into problems. Let’s take a look at what happens when you sell a house with a mortgage.

Selling a House With a Mortgage

Many homeowners sell their homes with a mortgage. It’s pretty common that homes are sold before the mortgage is completely paid off. The sale of the home should pay off the remainder of the mortgage and hopefully leave you with enough profit left over to make a down payment on your next home. As long as the real estate market has stayed fairly stable since you’ve purchased your home, and you’ve kept the property in good condition, it’s likely you’ll be able to sell the home, pay off the mortgage, and move on to a new home and a new mortgage without issue. If the mortgage is not paid in full by the sale of the home, the situation becomes more complex.

Will the Sale Price Cover the Mortgage?

To calculate how much money you’ll need to earn when you sell a house with a mortgage, start by asking your lender for the payoff amount. The payoff amount is the total sum you’ll need to fulfill the loan contract. Just using the remaining balance in your estimate won’t factor in the loan interest and other associated costs. Next, estimate your home’s value to get an idea of the price you could earn from selling. To do this, you might research similar homes for sale in your area, calculate the average price per square foot, and factor in the size of your lot and if you’ve recently completed any major upgrades to the home. If you want to skip a formal assessment, there are calculating tools online that can help you get an idea of your home’s value. The estimated sale price should be able to cover the payoff amount, any other fees for property taxes, realtor fees, and leave some money left over for you to move to a new home. If it comes up short, this could mean you owe more on your mortgage than your home is worth. When this happens, your home purchase loan is considered to be “underwater.” If you want to sell a house with a mortgage that’s underwater, a traditional sale may not be right for you. However, you still have options to sell your home.

Can I Sell a House with an Underwater Mortgage?

If the principal on your home loan is greater than your home’s value, you may find yourself trying to sell a house with an underwater mortgage. There are a number of factors that can affect your home’s value and make selling a house with a mortgage difficult. If your home needs significant repairs, or the home’s value dips due to other factors, the sale value might not match the value when you signed the mortgage. Fortunately, you can still sell a house with a mortgage that’s underwater. You can work with your lender to sell in a short sale, or sell to a real estate investor for a quick, cash offer.

Sell a House in a Short Sale

In a short sale, the lender agrees to accept less than the original loan terms. In some cases, they may be willing to waive the remainder of the loan. The short sale means the lender is more involved with the sale of the home. They must sign off on any offers before they can be accepted. The short sale process can be lengthy, and involves a lot of paperwork and waiting for bank approval. If you want to sell your home quickly, you might want to consider another option.

Sell a House With a Mortgage to a Real Estate Investor

When you sell your home to a real estate investor, they will make you an offer, in cash, based on the market value of your home. Real estate investors have worked with many homeowners who want to sell a house with a mortgage and can offer you a quick and effective solution for your mortgage problem. If you’re looking to sell your home quickly, they can close on the sale in as few as five days. Since they will purchase your home in its current condition, you won’t have to worry about making repairs or changes to your home. Also, you won’t need to hire a realtor. A real estate investor can work with you to resolve your debt and help you out of your home and on with your life. If you’re selling your home, but aren’t sure you can recoup enough to cover your mortgage, talk to the team at Hometown Development. We regularly work with homeowners just like you, and we can find a solution that’s right for your situation.

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Meghan Vandenhout 616-942-8955

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