Oakwood Heights homeowners urged to crunch numbers
Brian J. O'Connor/The Detroit News
17 November 2011

At a minimum of $40,000 plus a bonus and other incentives, homeowners in Oakwood Heights are looking at a tidy sum of cash to sell their homes to Marathon Petroleum Co.

But they shouldn't be dazzled by dollar signs, warns Setina Briggs, housing manager with GreenPath Debt Solutions.

"It may be a good deal for most of them if they're getting above the market value for their property," Briggs said, "but you really have to plan on where you are going to go once you sell."

Homeowners without a mortgage may not want to take on new loans to move elsewhere, for example. Homeowners also should check with a local mortgage broker and find out how much they might be approved to borrow for a new home.

Other factors include calculating new taxes in another neighborhood or community and insurance costs, as well as other expenses, such as a longer commute to work.

Briggs encouraged homeowners to work with their own real estate agent to estimate the value of their home and all the costs of a move — from purchase fees to moving, taxes, insurance and any repairs to a new home.

If the homeowners owe more on the current mortgage than their Oakwood Heights home is worth, they'll have to pay that off in order to move, as well.

"First do a financial assessment to determine what it's going to cost to relocate and all the expenses they might incur," Briggs said. "See what it's really going to cost to relocate."