The very first Jackson, MI real estate purchase occurred in 1829 and consisted of 160 acres at a price of $2.00 per acre. Although the prices are not as good today as they were then, it is always a good idea to own some real estate. Jackson, MI might be a good place to start looking.

Originally named Jacksonburg, the name was shortened to Jackson after only nine years. Located in the south-central area of Michigan, south of Lansing, west of Ann Arbor and Detroit, it is the county seat of Jackson County. Major employers include CMS Energy, Foote Hospital and Michigan Automotive Compressor. At the last census, the average income for a family was around $40,000 per year.

A recent search for Jackson, MI real estate for sale returned a list of over 1600 single family, town-homes, condominiums and lofts. At least 900 of these had asking prices of $200,000 or less. Rather than price per acre, many listings now show price per square foot. For example, a home in the Queens area on South Higby Street is priced at $179,900. That price is equivalent to $97 per square foot.

In 2006, nationwide price increases were seen in real estate, Jackson, MI and the surrounding areas were some of the few exceptions. These markets saw decreases in average sales prices by as much as 7%. The real estate agents in these areas made a 6% commission on the average. If the homeowner on Higby Street is able to get the asking price of $179,900, she will pay $10,794, just in commission.

Commissions are high on real estate; Jackson, MI is no exception to this rule. Some realtors are even advertising 'low' 3 or 4 percent commissions, as a way to attract new sellers. That's still equivalent to thousands of dollars. Homeowners with little or no equity are making little or no profit. In fact, people who must sell their home quickly are sometimes losing money.

Buyers of Jackson, MI real estate are typically found paying all of the closing costs. Sellers paying high commissions and making little or no profit are not likely to help with closing costs. In addition, lenders typically want prospective buyers to pay at least 5% down, that's another $9000 on the Higby Street home. Buyers with problematic credit are typically required to put more money down or pay higher interest rates, if they can qualify at all.

Both buyers and sellers need options. The number of 'for sale by owner' listings are on the rise. Sadly, so is the number of foreclosures. Our recent search for Jackson, MI real estate foreclosures returned 223 results.

One option that is becoming increasingly popular is 'rent-to-own' or a lease option agreement. When handled properly, this option can keep a property out of foreclosure; put more money in the sellers pocket and, not the least of all, help the buyer as well.

A lease option agreement 'locks in' the price of the property. For the seller, this means that she will not be forced to reduce the price in order to complete the sale quickly. For the buyer, this means that if the property appreciates in value (which they usually do), he will not be forced to pay the higher price.

A lease option agreement helps the property owner make the mortgage payments, keeping the property out of foreclosure, even if the owner already has another mortgage to pay. The same agreement helps the prospective homeowner save for a down payment. Buyers and sellers agree on a monthly rental that is affordable, pays the mortgage and has an amount 'set aside' which goes towards the buyer's eventual down payment.

If the seller chooses not to use a realtor for the final sale, a lease option agreement can mean thousands more in profits. If a buyer finds his own loan, he avoids paying mortgage broker fees.

People with credit problems that might not qualify for a conventional loan can usually qualify for a lease option program. In addition, there are legal credit repair programs that can increase a person's credit score by hundreds of points in a matter of months. This can be an advantage to anyone with less than excellent credit, because the higher the credit score, the lower the interest rate. Lower interest rates can save you hundreds of thousands of dollars, in the long run. In the short term, lower interest rates mean lower monthly payments or shorter mortgage periods.

These are only some of the advantages of a lease option or rent to own program. 2006 saw nationwide increases in rental amounts on real estate. Jackson, MI was, once again, no exception. Even though, sales prices were down, rental prices were up. Renting a home is almost like throwing money away for years and years. Buying a home is an investment in the future. People who own their home when they retire have many more options than people who have rented all of their lives.

Whether you are buying or selling Jackson, MI real estate, take a closer look at the lease option or rent-to-own properties. The advantages can be numerous.

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