Jeff Duneske

Yes, land can be an excellent investment, but it is an entirely different type of investment from a rental property. You are correct in your thinking. A rental property is an income-producing asset (it's designed to create monthly cash flow). Raw land is a non-income-producing, speculative asset. Its entire investment value is based on appreciation. As you consider this, here are the general pros and cons. Land as an Investment: The Pros and Cons The "Pros" (Why it's a good idea) Affordable Entry Point: It's a way to get into the real estate market with significantly less capital than buying a home. Low Maintenance: This is a major advantage. You don't have to worry about tenants, toilets, or roof leaks. A "Forced" Savings Plan: By paying down the land, you are building equity in a tangible asset. Finite Resource: They aren't making any more of it. In an area with population growth, land will almost always become more valuable over time. Flexibility: When you are finally ready to build, you can build the exact home you want. The "Cons" & Risks (What you must know) This is the most critical part. Unlike a rental, where a tenant helps pay your expenses, land has carrying costsaEUR"meaning it will cost you money every month out of your own pocket just to own it. Negative Cash Flow: You must be financially prepared to pay these costs, potentially for years, without any income to offset them: Property Taxes: You will pay property taxes every year. Financing: Getting a loan for raw land is very different from a home mortgage. Lenders typically require larger down payments (often 20-50%) and may charge higher interest rates because the land itself isn't generating income. Liability Insurance: You'll want this in case someone gets injured on your property. HOA/POA Fees: If the land is in a community or subdivision, you'll likely have annual dues. It is "Illiquid": This is a key financial term. "Illiquid" means it can be difficult to sell quickly. The market for a specific 3-bed, 2-bath house is massive. The market for a specific plot of vacant land is much, much smaller. You can't just "cash out" in a week if you need the money. Intensive Due Diligence is Required: This is where investors get into trouble. You cannot just buy a pretty piece of land. Before you close, you must verify that you can legally and physically build on it. Zoning: Is it zoned for residential use? Utilities: How will you get power, water, and internet? Are utilities at the street, or will you have to pay thousands to have them run? Sewer vs. Septic: If there's no public sewer, you need a septic system. This requires a "perc test" (percolation test) to see if the soil can absorb water. If the land fails a perc test, it could be unbuildable and worthless. Access: Does the property have legal, year-round road access? A "landlocked" parcel is a major problem. Environmental: Is it on a flood plain? Are there protected wetlands? Is the topography too steep to build on affordably? My Professional Advice Your strategy is sound if you go in with your eyes open. Land is a "buy and wait" investment. It's not a "get rich quick" plan. It's a fantastic way to secure your future build site and capture appreciation, as long as you can comfortably afford the carrying costs for the long haul. The most important step you can take is to partner with a local agent who specializes in land. This is not the same as a standard residential agent. A land specialist will know the specific zoning laws, soil conditions, and development costs in that county and can guide you through the critical due diligence process.

Not necessarily, but they're often misunderstood. Open houses can serve a purpose, but their value depends on how they're conducted and what the seller's goals are. A well-planned open house can attract local buyers who are just starting their search, neighbors who may know someone looking to move into the area, and even unrepresented buyers who might not have scheduled a private showing yet. However, most serious buyers indeed schedule private showings with their agents; that's where the strongest interest usually comes from. So while open houses can increase exposure and create energy around a listing, they rarely produce the actual buyer directly unless the marketing and follow-up are handled strategically. If your agent isn't using a sign-in system, collecting buyer information, or providing flyers and digital follow-up, then yes, the open house might not be serving its full potential. It's not that open houses are a waste of time; it's that poorly executed open houses often are. In my experience, open houses work best when they're part of a larger marketing strategy, one that includes targeted digital promotion, neighborhood outreach, professional materials, and a clear plan for following up with everyone who attends. The bottom line: an open house can be valuable, but only when it's done with purpose, preparation, and follow-through.

When you are buying land and planning to build a home, financing usually happens in one of two ways, depending on where you are in the process and your financial situation. Option 1: Separate Loans for Land and Construction Some buyers start by purchasing the land first, using a land loan. Land loans are used only to buy the lot and tend to have shorter terms, higher interest rates, and larger down payments (often 20 to 30 percent) since there is no structure yet to serve as collateral. Later, when you are ready to build, you apply for a construction loan to cover the cost of building the home. Once the home is complete, you can often refinance both loans into a single traditional mortgage, also called a construction-to-permanent loan. Option 2: One Loan That Covers Both A construction-to-permanent loan can simplify the process by combining land purchase and construction financing into a single loan from the start. You make interest-only payments during the construction phase. Once construction is complete, the loan automatically converts into a standard long-term mortgage, saving you a second round of closing costs and underwriting. What to Expect Down Payment: Typically 10 to 30 percent, depending on the lender and whether you already own the land. Draw Schedule: The lender pays the builder in stages as work is completed. Appraisal and Inspections: The lender will require appraisals and progress inspections during construction. In short, yes, you can have separate loans for land and construction, but a combined construction-to-permanent loan is often the smoother and more cost-effective route for most buyers.

That's a great and very real question, and one that every potential landlord should ask before jumping in. Owning a rental property can be a fantastic way to build long-term wealth, but it's not " easy money.aEUR? Like any investment, success comes from preparation, protection, and having the right systems in place. Here's how to protect yourself and minimize risk when renting out a home: 1. Screen Tenants Thoroughly The most important step in protecting yourself is selecting the right tenant. Run credit, criminal, and eviction background checks. Verify employment and income (aim for at least three times the rent). Call previous landlords to confirm payment history and behavior. Meet potential tenants in person when possible. A good tenant is your best insurance policy. 2. Use a Strong Lease Agreement Avoid generic forms online. Work with a real estate attorney or experienced property manager to draft a lease that's clear and enforceable under Michigan law. Include: Rent due dates and late fees Maintenance responsibilities Pet and occupancy limits Rules for property condition and inspections A detailed lease can prevent 90 percent of disputes before they start. 3. Require a Solid Security Deposit Michigan allows landlords to collect up to 1.5 months' rent as a security deposit. This protects you if a tenant leaves early, damages the property, or skips out on rent. Keep the deposit in a separate account and follow Michigan's specific rules for notices and returns aEUR" it keeps you compliant and professional. 4. Keep Documentation and Communication in Writing Use text or email for rent reminders, maintenance updates, and agreements. If you ever need to enforce the lease or go to court, clear records make all the difference. 5. Consider Landlord Insurance and an LLC A standard homeowner's policy usually doesn't cover rental activity. A landlord policy protects you from liability, loss of rent, and damage caused by tenants. If you plan to own multiple rentals, putting each property in its own LLC can help shield your personal assets from legal or financial risk. 6. Plan for Vacancies and Unexpected Costs Even with great tenants, you will face vacancy periods and repairs. Set aside at least three to six months of mortgage payments as a reserve. This gives you peace of mind if a tenant leaves suddenly or you need time to find the right replacement. 7. Hire a Professional Property Manager (If Needed) If you don't want the day-to-day stress of managing tenants, consider hiring a local property manager. They handle marketing, screening, maintenance, rent collection, and evictions aEUR" for a percentage of monthly rent. It can be well worth it for peace of mind and protection. The Bottom Line Owning a rental can absolutely be beneficial, but only if it's approached like a business, not a hobby. With the right tenant screening, lease structure, insurance, and financial buffer, you can protect yourself while building long-term equity and steady income.

In Michigan, who pays the real estate commission depends on how the home is sold and whether an agent is involved in the transaction. 1. If You Listed with a Realtor If you signed a listing agreement with a RealtorA(R), then yes, you'll typically owe the commission outlined in that agreement, even if the sale happens quickly. The commission is always negotiable. It's paid from the proceeds at closing, not out of pocket upfront. So even in a fast sale, your Realtor still earns their fee because they marketed, negotiated, and facilitated the deal that got your home sold. 2. If You Sell Without an Agent (For Sale by Owner or Direct to Investor) Suppose you sell your home on your own or directly to a buyer or investor without listing it. In that case, you typically don't owe a Realtor commission, unless you separately agreed to pay a buyer's agent who brought the buyer to you. However, in those cases, the buyer may expect a discount on the purchase price since no agents are being paid. 3. In Some Quick or Off-Market Sales Suppose your agent brings you a buyer directly (before public marketing or listing). In that case, most listing agreements still state that commission is earned once a ready, willing, and able buyer is procured, even if it happens fast. The Bottom Line Yes, in most quick sales handled by a Realtor, commission is still paid at closing as part of the normal process. That said, a quick sale often means you're saving time, stress, and carrying costs, which can balance things out financially.

Should You Get a Pre-Listing Inspection? If your home was built in the 1970s, a pre-listing inspection can be a smart move before putting it on the market. Here is why: 1. Identify Issues Before Buyers Do Older homes often have aging systems like electrical, plumbing, or HVAC that may not meet today's standards. A pre-listing inspection helps you find and address these issues early, so you are not surprised later when a buyer's inspector finds them. 2. Increase Buyer Confidence When you provide an inspection report up front, it sends a message that you have nothing to hide and that you take care of your home. Buyers tend to feel more comfortable and may make stronger offers when they trust the condition of the property. 3. Control Repairs and Pricing By knowing what needs attention ahead of time, you can decide which repairs to make and which to leave as is. This allows you to price your home accurately and avoid last minute renegotiations that can delay or derail a sale. 4. Save Time During Negotiations When you already know the condition of your home, there are fewer surprises during the inspection phase, which often means a smoother, faster closing process. When It May Not Be Necessary If your home has been well maintained, updated, and you already have a good sense of its condition, a pre listing inspection may not be essential. In that case, your RealtorA(R) can help you decide if a buyer's inspection contingency is enough protection. The Bottom Line A pre-listing inspection is not required, but for homes built before 1970, it can give you peace of mind, make your listing more attractive, and reduce the risk of surprises later. It is an investment that often pays off in smoother negotiations and stronger offers.

That's completely understandable. Sometimes, you need to know what your home is worth without listing it for sale. Here's how you can get a home appraisal in Michigan: 1. Hire a Licensed Appraiser Directly You can contact a state-licensed or certified residential appraiser to perform an independent appraisal. Search online through the Michigan Department of Licensing and Regulatory Affairs (LARA) or professional sites such as the Appraisal Institute or Appraisers.org. Look for appraisers who specialize in your property type and area. They will schedule a visit, inspect the property, review comparable sales, and provide a detailed written report showing your home's appraised value. 2. Expect Typical Costs and Process Cost: Most residential appraisals range from $400 to $700, depending on the size and complexity of the home. Time: The process usually takes about a week from inspection to receiving the report. Purpose: Be clear about why you need it, for example, estate planning, refinancing, divorce, tax appeal, or private sale. This helps the appraiser prepare the correct type of report. 3. Alternatives to a Formal Appraisal If you just want an estimate of market value (not a legal appraisal), you could also request a Comparative Market Analysis (CMA) from a local RealtorA(R). A CMA is not an official appraisal, but it can give you a solid idea of what your home might sell for in today's market, usually at no cost. The Bottom Line If you simply need an official valuation and are not planning to sell right now, hiring a licensed appraiser directly is the right path. If, down the road, you decide to explore selling or refinancing, I would be happy to connect you with a few trusted local appraisers and help interpret the results.

Meeting with an agent does not mean you have to hire them. It is your choice who you work with, and the agreement becomes binding only after you sign it. Take your time, ask questions, and choose the person who feels like the best fit to represent you and your home.

You don't need to follow the appraiser during the entire visit, but you should be present and available. Think of it as a balance between being helpful and giving them space to work. Here's the Best Approach 1. Be There to Greet Them Welcome the appraiser when they arrive, introduce yourself, and offer a quick overview of the home. Have any upgrades, updates, or improvements written down, things like a new roof, furnace, windows, or finished basement. This gives them helpful context before they start. 2. Give Them Space to Do Their Job Once the inspection begins, let them move through the home freely. Appraisers need to measure rooms, take photos, and make notes without distraction. Hovering can unintentionally add pressure or slow them down. 3. Be Available for Questions Stay nearby in case they want to ask about property details, utility systems, or updates. You can stay in one area (like the kitchen or living room) so they know where to find you. 4. Provide Key Documents If you have a list of recent improvements, permits, or a copy of a recent survey or floor plan, offer it at the start or end of the visit. These details help ensure your home's full value is represented. 5. Keep the Home Clean and Well Lit It's not a showing, but first impressions still matter. A tidy home communicates pride of ownership, which can positively influence how your property is perceived. The Bottom Line You don't need to follow the appraiser, but being polite, prepared, and available goes a long way. Offer your information up front, then give them room to complete their inspection efficiently.

That's a great question, and one I hear often from homeowners preparing for an appraisal. The truth is, you do not need to make your home spotless or perfect, but presentation does matter in subtle ways. Appraisers are trained to focus on objective factors like square footage, condition, updates, and comparable sales, not how clean your home looks. However, a well-cared-for and tidy home can leave a positive impression that reinforces your property's overall condition and pride of ownership. Your goal should be clean, not flawless. Give your home a good once-over so it feels neat, organized, and fresh. Wipe down counters and surfaces, vacuum or sweep floors, and make sure the kitchen, bathrooms, and entryway look presentable. Put away visible clutter and personal items where you can, but do not stress if your kids' toys are out or the laundry is not perfect. Appraisers understand that real people live in their homes. What matters most is that your home looks maintained. Fix any minor issues such as loose handles, scuffed walls, or burnt-out lightbulbs before the visit. If you have made recent updates like a new roof, appliances, or finished basement, it helps to have a simple list ready to share. A clean, organized home does not directly increase your appraised value, but it does support a positive impression of how well the property has been cared for. Think of it as giving your home a " guest-readyaEUR? clean, comfortable, tidy, and inviting, without the pressure of perfection.

That's a great question and a common concern for many sellers. The number of open houses a Realtor holds can vary depending on the home, the market, and the overall strategy. In most cases, agents will hold one or two open houses within the first few weeks of listing a home to create early momentum and attract potential buyers. After that, open houses are usually scheduled only when there is a slowdown in showings, a price adjustment, or a new marketing push. It is important to remember that open houses are only one part of a much larger marketing strategy. Today's buyers often find homes online first and schedule private showings through their own agents. That is why strong marketing usually focuses more on professional photos, online exposure, social media promotion, and agent networking. Those efforts typically generate more qualified buyers than repeated open houses. If your home has had only one open house in three months, it does not necessarily mean your agent is not doing their job. It may simply reflect a different marketing approach. However, it is completely reasonable to ask for an update on what is being done to promote your home, how much online visibility it is getting, and what kind of feedback has come in from showings. In short, most homes do not need multiple open houses to sell successfully, but you should always feel confident in your agent's plan and the communication you receive about it.