Bob Fall

Great question! Historically yes land is a good investment over the long term. Outside of booming market bubbles, land, and real estate give stability to any portfolio of investments. Chat with your CPA on tax advantages and the affordability of the land you are looking to purchase.

Does the property cash-flow? That is the most important question. If the property brings in more than the mortgage, taxes, and insurance that is a huge plus. Then the question is what will the maintenance cost be over the next few years? A good inspector can help you note concerns. If those questions check out and you decide to purchase the property the three most important rules at that point is #1. renter selection #2. renter selection #3. renter selection! Spell everything out on the front end so there is no question as to the expectation from you and from your tenant.

Great question Sam, This is a bit tricky to answer as we are not talking about a specific house and your specific circumstances. In light of that, I will just speak generally. Normally the foreclosure process takes a significant amount of time. Depending on the season and market, it can take anywhere from 3-8 months for a bank to bring a foreclosed home to market. Banks often employ property management companies to secure and prep the home but by the time they get called to do that, the home has sat vacant for some time. Its important to keep that in mind when looking. A good inspector can point out major concerns and help you determine if its something you can tackle or not. For the last part of your question regarding the bank coming back on you. It would be wise to utilize a title company that can insure the title before you purchase the property. This may cost a little bit but could save you from someone coming back and laying a claim to the property. No two transactions are the exact same, so lean into those local professionals that know your market.

You should know that every state and municipality handles mobile homes differently. Some lenders will lend on them some will not. In some states, they are titled like a vehicle and that means you may be required to pay additional sales tax on the purchase of the mobile home. Some states require a brokerage to carry a special license to buy and sell them. Because of all these variables, I would encourage you to reach out to a local professional that can speak to your specific situation. Hope that helps.

Hi Dale! Sounds like a frustrating situation. The answer to your question is... maybe. It all depends on how the contract is written and how your state has interpreted said contracts in the past. Some contracts allow ways to back out of the contract. For example; inspections, appraisals, and the ability to finance are common contingencies in my neck of the woods. My best advice would be to reach out to an attorney that specializes in real estate. They will likely want copies of the contract and ask questions to better understand your situation. Good luck and God Bless!

An agent is a fiduciary of the broker and their brokerage. So technically you are always working with the broker even if you are working with one of their agents. The broker is acting on your behalf to the extent that you have agreed to regarding real estate transactions.

The way to determine the value of something is to try and figure out what someone would pay for it. To determine what someone will pay for something, we look at what people have paid for similar properties in similar areas. We do a comparative market analysis (CMA) which looks at what properties have sold for in the last few weeks. Please note that in most states a third-party opinion of value must be performed by a licensed appraiser. That is different than a CMA. A CMA is a tool to help determine how much you should list your house for or a fair market estimate of what you should pay for real estate.

Great question! Treat the property like a house purchase in the sense that you will own it. So, get inspections done. ALSO, read the covenants, by-laws, and rules the govern the condominium. Depending on how you write the offer to purchase, these should be considered part of the inspection period. It is a good idea to team up with a local agent that can help you understand these things. Good luck!

The most common method appraisers use in residential real estate is the comparative method. This is where they compare your home to similar homes that have recently sold. This gives them an idea of what your home would likely sell for. Some of the things they compare are the age of the home, updates, square footage, architecture type, and location. Focus on the factors you can control. The most controllable factor is updates. Updates that really matter include things like the roof, HVAC system, plumbing, electrical, etc... Carpet and paint do little compared to an updated kitchen or bathroom. Also keep in mind that when an appraiser appraises a house for a lender they are, in a sense, answering a question for the lender. That question is "Is this house worth what has been agreed to in the purchase agreement?" Its increasingly rare today to have an appraisal come in above the agreed-upon purchase price. I would encourage you to chat with a local agent that understands the market in your area and can give you some insight to what your home may fetch in the current market.

This can be a very fun and interesting challenge. I recently listed a house in a very historic area and found the public library very useful when it came to the specific history of that town and area where the house was located. I would start there.

Hi Sarah! I am a Realtor in Michigan. A typical exclusive right to sell contract usually dicates that the brokerage is owed a commission for the sale of the property no matter who purchases it. In a typical exclusive agency listing contract the brokerage is owed a commission IF they bring a buyer. There are also one party listing agreements that are common among "for sale by owners" that are dealing with a buyer agent; in these the commission is negotiated before the offer is presented. The speed of the sale is not relevant in determining if a broker is owed a commission unless the contract has expired. I hope this helps answer your question. Make today great!

Hi Leigh! The exact answer to your question is....maybe. Sometimes kitchen remodels add value to the property and most of the time they make it more marketable. That said, it is important to know that it is also one of the most expensive rooms to remodel. You may not get back what you put in. A local agent can help you determine the rang of pricing you might expect to get in your area. This would be good information to have before you start that project. Good luck!

A good inspector will be able to give you a pretty good idea if the basement has flooded. Some states require that the seller disclose information like that if they know about it. But I revert back to an inspector with experience, they are your best option.

Great question. I manage several properties in Michigan; both residential and commercial. The 3 most important things about rental properties is, in this order; 1. screen the tenant 2. screen the tenant, 3. screen the tenant. The only way you can predict future performance is to analyze past behavior. Remove emotion from the equation. Consult an attorney to draft your lease agreement. Invoke the services of a local real estate professional who has experience in this area. Like anything worth doing, there is risk, but these risks can be mitigated.

Sorry about your experience. The best thing to do is reach out to the supervising broker.