TIC Property Sales in Ann Arbor, Michigan

By
Real Estate Agent with Keller Williams Realty, Ann Arbor, MI

Let me take you back to your real estate exam days.taking the real estate exam

We all learned a lot of things to pass our real estate tests, and if you had an instructor like I had, you were likely told that most of what you learned to pass the test would not be needed in day-to-day business.  That probably explains why so many agents called me when I listed my odd Ann Arbor property quite prominently as a "TIC property sale" involving three individual residences under a TIC property agreement.  Apparently, this is the first property listed this way in all of Michigan.

The calls flooded in from agents.  "What does TIC mean?"  "Tenancy in common," I told them.  I would then go into my spiel about my particular cluster of 3 residences tied together by a common well and septic field on a parcel too small to create additional wells and septics, short setbacks on two of the three, etc.  Suffice it to say, non-conforming on multiple fronts.  However, TIC ownership could allow the properties to be sold in a fractional ownership situation with each individual/entity having designated exclusive right of use of a part of the property.attorney type and clients  As long as the buying parties agreed to the TIC document details, which they themselves would author, or perhaps more precisely, alter to their needs and requirements, under the guidance of a TIC attorney, everything should be just fine.

Not too scary, right?

The fear factor of a joint mortgage paralyzed many from the start, no matter how many safeguards were to be written in to the TIC agreement.  Remember, Michigan is no stranger to mortgage defaults and the economic climate is not suggesting many positive vibes to the contrary.  Skepticism abounded but the showing requests were enormous since the price points are fabulous.  Breaking this $299,900 property into 3 individual sales made the list prices appealing to buyers while the 3-in1 price had been decidedly unappealing to investors.  If the properties condo-convert, there should be an equity jump for all, investors included.  

multi-unit housingSo I am looking forward to offers shortly on some of the best deals on vintage single family homes in a tranquil setting within Ann Arbor schools, opposite a picturesque lake and commutable to multiple popular destinations.  Other parts of the country long ago embraced TIC property sales and it is time for Ann Arbor and Michigan to roll out the welcome mat too.

Please click on the links below.  This is not really a listing; it is an education.  I welcome any and all inquiries.  I apologize for the lack of interior photos for some of the properties - they are tenant occupied.  View and enjoy.  Then write me an offer!

P.S.  Did I mention that a local bank is considering offering financing on the individual properties in the TIC sale agreement, removing the scary all-in-one mortgage from the table?  Stay tuned - more to come!

http://aaar.mlxchange.com/Pub/EmailView.asp?r=518109012&s=AAR&t=AAR - 7493 Plymouth, $134,000

http://aaar.mlxchange.com/Pub/EmailView.asp?r=518109012&s=AAR&t=AAR - 7491 Plymouth, $69,900

 http://aaar.mlxchange.com/Pub/EmailView.asp?r=518109012&s=AAR&t=AAR - 3865 Albert, $96,000

 http://aaar.mlxchange.com/Pub/EmailView.asp?r=518109012&s=AAR&t=AAR - buy all three!  $299,900

www.susanwalters.net

Helping you find your way home.

Specializing in TIC Property Sales.

 

Comments (2)

Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I don't know if that would be allowed here in my county.  Not sure if a single parcel could be deeded to different people without a true survey and division which would not be allowed.  Interesting concept.  I can see I'm going to have to a little research on the subject.

Jul 17, 2009 04:17 PM
Susan Walters
Keller Williams Realty, Ann Arbor, MI - Ann Arbor, MI

Tammy, everyone is on the deed.  It is done routinely now already and this property may right now be a TIC since the owner and his wife, plus her parents are on deed.  The major difference is that the TIC in this format would be unrelated and initially unknown-to-each-other buyers.  There is nothing to prevent that arrangement being made in Michigan, anywhere.  Perhaps not anywhere in the country.

Condo conversion, that is a whole other story - you get into zoning, etc.   This is the salvation for this difficult-to-sell property.  It can even be financed FHA if at least one of the parties will be owner-occupiers.  (It is not priced out of the boundaries for what FHA will do in our area.)  It will revolutionize how we do multi-unit sales but like all new concepts, agents aren't comfortable working in environments they do not know.  Someone has to be the guinea pig.  I had the perfect property to do this with.  I hope my buyers and sellers will see the value, take the "risk", and benefit financially from having done so.

Jul 17, 2009 06:09 PM