As each area of the country has its own local customs and policies when it comes to buying real estate it is important for you to know what to expect in Michigan.
You can expect to close in 30 days from the time your offer is accepted if you are working with a local ender 45 days with an out of town lender. Possession is usually 30 days after closing. Much different than possession day of closing that most of the Chicago area experiences. You may charge the seller rent to stay for those extra days although the buyer normally lets the seller stay at no charge.
Seller pays for and will provide termite inspection however at Michigan Lakes Team Inc. we feel this is a conflict of interest for our buyer’s best interest and therefore recommend that the buyer pays the $60.00 for the inspection and controls who performs the inspection.
You may have your attorney represent you in your lake property purchase however this is not the norm. The title companies handle all aspects of the closing including title searches, processing all of the paperwork and doing the closing. They have their own attorneys. As your real estate agent is not an attorney and cannot give you legal advice if you have any questions or concerns feel free to ask your attorney.
You are encouraged to have the home you are interested in fully inspected by inspectors of your choice. We believe it is very important to know the full condition of the property before you close. Your inspection choices include: whole home, well, septic, water, radon, survey and more. You may also choose to have roof, electric, heating, cooling, plumbing etc. done by individual inspectors rather than a whole home inspector. Inspections are normally paid for at closing but some whole home inspectors may want to be paid for at the time of the inspection. Several health departments in Michigan ask for payment up front.
Your offer is contingent to favorable inspections. You may either ask the seller to make repairs to problems found through the inspections or cancel the sale if the seller does not agree. You will get your earnest money back. As these homes are most likely not new we are looking for major defects that will affect the integrity/safety of the home. Roof, cracked heat exchangers, unsafe electric, radon septic failure and well repairs. Expect many small items such as no GFI’s, sticky windows, bathroom fans not working etc. These items are not items to cancel a sale. Remember we are looking for major problems and that older homes will have many small items wrong with them. If you ask your agent to select inspectors for you please do not hold your agent liable if that inspector misses something. We can suggest inspectors for you but cannot guarantee their work.
Most heating systems will be propane heat or maybe even oil. These are systems you are most likely are not familiar with. We can get heating budgets for you from the seller which should give us an idea of how well the systems works and how insulated the home is. That combined with a heating system inspection should give us a good picture. All fuel stays with the house at closing.
Your earnest money will be held in non-interest bearing account with Michigan Lakes Team. Your check will be cashed and held until closing. Monies will be applied against your closing costs/down payment.
Taxes are prorated from January 1st until the day of closing. You will get a credit from the seller for this time period. After closing your taxes may go up substantially. Please check the Michigan tax we site or call the county treasurers to verify what your taxes may go up to. Your agent will guide you but cannot guarantee tax information.
You may ask the seller to provide a 1 year home warranty or you may purchase one yourself. Costs are normally $375-$400 paid at closing. This policy covers your home for items that may need repair but were in good working order when you closed. There is a deductible of normally $95.00 to you.
You are responsible to get information as to sex offender’s locations, psychologically affected properties, crime statistics etc. Your agent can give you the proper place to go for this information.
Michigan Lakes Team will NOT discriminate for any reason, with anyone nor answer any questions in respect to protected groups.
Michigan Lakes Team is a very ethical group of agents. We will always work for our client’s best interest while being fair and honest to everyone. We pride ourselves with our outstanding principles, education and professionalism. You will not find a better group of agents to work on your behalf. We look forward to helping you in this very important purchase and in keeping you well informed about lake living for many years to come.