Christian Real Estate Professionals : Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate

Grand Rapids, MI agents don't have to wait for the yearly announcement of the 'Good Neighbor Award' to support and celebrate one of our own local Realtors®.  It's wonderful to live in a community in which so many individuals give of their time and talents to serve our local community.  

And then, there are some agents like Sue Prins, a real estate agent with Five Star Real Estate, who stretch arms of compassion across the globe to touch the lives of those who are less fortunate.

I recently completed a transaction with Sue; one which took about 3 months to negotiate. It was really refreshing to work with a professional.  One of the unanticipated results of our 'extended deal' was that I became aware of Sue's interest in helping people in an impoverished area of South Africa become self-sustaining by starting a business.  The initiative is Vox Threads.

Here's a few excerpts from Sue's letter about the project:

I just read a post by Sally Cheeseman that stopped me in my tracks.  Sally quotes Qunicy Jones in an interview about  Michael Jackson.

Quincy goes on to say:

You have to be spiritually grounded and you are really a terminal for a higher power,

And if you don't understand that, you know, it can be very complicated.

And.....I've seen a lot of people misinterpret what success is all about.

One online descriptive defines a terminal in the following way: "a contact on an electrical device (such as a battery) at which electric current enters or leaves."  If a terminal is not grounded, the results can be disasterous and even fatal, because the electricity which is passing through the unit is so incredibly powerful.

Had you ever thought about how powerful the breath of life in you is?  Every human being is an expression of the Divine power of God.  Every gift and talent is an expression of His creative genius and inspiration.

It occurs to me that being grounded spiritually has it's base in humility; an understanding that whatever gifts and advantages we bring to this planet are a gift that simply flows through us...not a possession which we own. Humilty also serves to protect us from being blown away by hype, which will topple you over as quickly as it lifts you up with hot air.

Understanding this, as Quincy says makes all the difference in the world.

Picture is courtesy of jdl deleon on flickr

Copyright 2009 Audu Real Estate  All Rights Reserved

The latest issue of the Michigan Realtor magazine has an interesting article written by Walter Sanford which opens with the following quote:

"It's time to address something that's really a closet issue in our industry.  It is so rarely mentioned in mixed circles and looked upon with such fearful consideration that you might not immediately recognize the word:  Profitability."

It's the dirty little secret in our industry that most of us would rather not air.  Huge commission checks and tons of leads for buyers and sellers does not necessarily guarantee living above the poverty line when the balance sheet tabulates the bottom line. 

And this is not limited to a particular segment of the industry.  Brokers (small and large) as well as individual agents often find that expenses have a way of mounting and spiraling out of control. 

Part of the problem Sanford points out is our ignorance or lack of application of common sense business tools. 

It's so easy to get caught up in expending huge amounts of money in expensive training and seminars or the latest gadgets and loose sight of the obvious ways in which the money spigot is gushing out dollars and cents in a careless fashion. 

Here are some of the items which I found helpful in the article:

1.  Research your office supply purchases.

The tendency to buy without researching can be very expensive when it comes to purchasing office supplies over a period of time.  This is multiplied when supplies are purchased for multiple offices with different vendors.  There can be significant cost savings by consolidating purchases and negotiating preferential rates based on volume.  This method could also be used by GROUPS of individual agents purchasing in bulk and benefiting from lower costs.

2.  Eliminate ALL credit card debt above 16%

I thought this benchmark was interesting.  I would put the rate even lower than 16%, but it's at least a good starting point.  Higher interest cards should be consolidated to lower interest cards when possible and paid down as quickly as possible.

3.  Live on 90% of your income.

This is huge!  I am a firm believer in charitable giving, but in addition, it's important to put something in savings from EVERY commission check.  The rainy day fund does not hedge against a rainy day, it presumes that there will be one!

4.  Watch the "I am too busy to Eat at Home Syndrome

I loved this item on the list!  Eating at home is much healthier and less expensive than eating on the go.  I'm finding it useful to cook a little more than normal and to plate up the extra food for later.  When I'm in the car debating eating out, it's easier to head home if I know that something delicious can be easily warmed up in the microwave.

Also, according to Sanford, some agents spend up to $500 a month eating out at restaurants and subsequently gain an average of eight pounds a year.  If you continue at that rate, that's an average of 30 POUNDS every 4 YEARS and and additional $6,000 in meal expenses!

 5.  Advertise where your returns are the greatest!

Sanford advocates immediately STOPPING ANY ADVERTISING that is not bringing in a  4-1 ration. That means for every dollar you spend, you make $4 AFTER expenses.  When you look at your investment in money and TIME, you may be surprised to find out exactly what your advertising dollars are or are not doing.  This includes time spent online...some mediums far outweigh others in terms of lead generation and conversion to income.

6.  Cut the fancy car habit.

For many agents, fancy cars are an outward statement of success.  But according to Sanford, fancy cars are probably the worst investment you can make.  In an era of escalating fuel costs, fancy cars not only cost more to purchase, they often guzzle more gas.  And in the end, your value is not in your wheels, but rather in your integrity and competence in successfully completing a transaction.

Have you had a personal profitability discussion recently?

Have you had a personal discussion about profitability recently?  Either with yourself or another broker/agent?  There are a number of ways that we can do things more efficiently.  Are there some of the ideas you have used to shore up resources and increase your profitability during this time?

This article was very timely for Michigan as we face ongoing challenges in our economy, but I think Sanford's advice is well heeded by all real estate practitioners who are determined to thrive in today's market. 

Copyright 2009  Audu Real Estate  All Rights Reserved

 Image courtesy of Mike Schmid on flickr

Recently a call came into the office from a prospective buyer.  After talking with her briefly, I asked her if she was being assisted by an agent who could get her real time updates of newly listed homes when they were listed.

She seemed surprised that this was possible.  But it wasn't until she began to share her online experience with me that I became startled. Apparently, she had clicked on a link on a website to get information about a home listing and didn't think anything of it...until she was presented with a $15 charge on her phone bill the next month.  When she contacted the phone company, they informed her that the click had cost her $15!

Has anyone else run into this? 

I did let her know that you don't have to pay ANYTHING to get updated information about homes in Grand Rapids, MI.  In fact, the Grand Rapids Association of Realtors is now beta testing a new site which will allow prospective homebuyers to customize and SAVE their searches.  They can also choose to associate the search with the real estate agent of their  choice if they'd like.

In addition, the association is asking consumers for feedback so they can enhance what our guests experience while they are online.  Check it out for FREE.  You don't have to pay for the most comprehensive, real estate listing information available in Grand Rapids, MI straight from the professionals who serve in the real estate industry everyday.

If you're searching for an agent to serve your local real estate needs, visit www.auduhomes.com.  You can create your own private search by clicking on the Property Search link and also access tons of information about the local area.

Copyright 2009  Audu Real Estate  All Rights Reserved

Passion! 

Is the inspiration behind genius.

Passion!

Is  purity which Loves for it's own sake

Passion harbors gritty endurance 

That withstands the gale of withering opposition 

Passion is a nectar...

Which provides sustaining grace in the face of extreme odds. 

Passion is the gift of insight which perceives a reality obscured to the casual observer. 

Passion plays center stage in it's own  drama 

And dances to the beat of an unknown drummer

Passion manufactures it's own joy...

And nourishes it's own truth

Passion understands it's own unique sorrows

And endures to reap it's own peculiar Reward.

******

Copyright 2008  Audu Real Estate  All Rights Reserved

*This blog post was originally posted in the Spring of last year.  It remains one of my favorite inspirational posts and is included in "The Oldies But Goodies" series.

Today, the sun came out to play!  Lately, it's been hiding away. In it's place, the clouds have had full sway. Drenching us with showers and occassionally startling me with a loud burst of thunder illuminated by brilliant crackles of lightning.

And, it is at precisely within this dark backdrop that my attention is captured by two flowering trees in the yard; in particular a magnolia tree plump with juicy pink blossoms.  As if to say, 'I'm not worried about a little drama, it's time to strut my stuff!'

Sometimes strong storms visit West Michigan during the transition between winter and spring when the earth begins to resist the blanket of snow which has buried it for several months. The visitation of these strong winds has been known to topple even electrical poles as the rain melts what is left of the lingering snow.

At first, the grass barely yawns.  It is haggard and brown, a condition reflected in trees with lifeless branches.  But then something odd begins to appear.  As the first storms drench the earth, the hardiest of plants begin to emerge...spring flowers like the daffodils.  Have you noticed how incredibly bright these hardy souls are?

We can learn a lot from the first signs of spring.  Lessons which are increasingly valuable in the times in which we live.  One lesson which stands out to me is that storms are inevitable.  And they are necessary.  When the rain splatters against a hardened earth, the softening begins to make way for the shoots buried just underground.  The strokes of lightning like a paint brush, transforms the dull grey to a brilliant green lush canvas.

I see my magnolia.  Her arms reach towards the sky, confident that the sun will appear again. She is unafraid of the harshness of the circumstance.  Instead, she chooses to launch out with confidence, her branches revealing a beauty which transcends the atmosphere raging around her.  And with time, the sun does re-emerge.  But, she doesn't skip a beat. Now her blossoms open in wide embrace as if to say, "I knew you'd be back!"

Copyright 2009  Audu Real Estate  All Rights Reserved

This past week, I attended a Foreclosure seminar which was part of the Fair Housing annual educational and awards presentation held in Grand Rapids, MI.  The event drew a significant number of individuals representing different areas of government, business and the non-profit sector.  

The foreclosure session was led by Kym Spring, the coordinator for Foreclosure Response, and featured several presenters as well as discussion and questions from the audience.  I learned a lot about the profound impact that foreclosures are having in the West Michigan area including the unsettling statistic that 10% of the housing stock in our area is in some part of the foreclosure process.  In Kent County, we're loosing about 10 homes a day, 7 days a week!

One of the most arresting comments came from a member of the audience. (which included several local experts)  A gentleman associated with Home Repair services, an organization dedicated to helping home owners STAY in their homes shared this:

'While much is being done and invested to address the crisis through programs to help the banks and re-build communities, we should remember that it costs approximately $1,000 to help a family STAY in their home.  And organizations which do this are struggling with their budgets.'

That comment for me highlighted the challenge of dealing with this crisis.  Sometimes, complexity gets in the way of common sense.  While there is not going to be one single silver bullet to end this crisis, we risk loosing sight of obvious steps which can be taken to alleviate human suffering and stabilize hard hit communities.

After all, if our neighbors loose their homes, we're all going to suffer.  This is NOT an individual problem...it's a collective problem!

At a time when the numbers being tossed around to deal with this crisis are so staggering that we need graphs and pictures to help folks understand the size of the mountain of dollars, it was really refreshing and eye opening to hear about practical solutions which would cost far less and can be implemented at the local level.  

If you're in the West Michigan area and need help because of the threat of Foreclosure, here are some reputable organizations which can be of assistance.

Legal Aid of West Michigan: 

If you're a renter, being unfairly evicted due to foreclosure, call:  616-774-0672

Foreclosure Response:

Homeowners, renters and neighborhood communities can access services, self-help tools and action steps to help prevent foreclosures.  Call 616-401-0680 or e-mail ForeclosureResponse@gmail.com

Home Repair Services:

These housing specialists provide FREE assistance to help homeowners work out positive outcomes with their lender.  They also serve as a referral to other services which can be of assistance to people facing this challenge.  Call 616-241-2601

Copyright 2009  Audu Real Estate  All Rights Reserved

If the beginning of the year 2009 was somewhat tepid for real estate sales in Grand Rapids, Michigan…things changed in March.  March roared in and out with numbers which had many in the real estate community chattering with delight.

Activity increased with home buyers sending sales into an upward spiral which eclipsed the same period of time in March of 2008 by 19.46%!  For agents on the ground working with home buyers, this translated into multiple offers or Sold signs on many desirable properties.

In addition, although foreclosures and short sales continued to depress pricing, the overall number of homes for sale was down by 12.8% (10,301 active listings in 2008 vs 8,982 in 2009) and the inventory racks (also known as the absorption rate) decreased from 12.69 months of housing inventory to 9.26 months.

For home sellers, the bottom line view still hurts to look at.  In March of 2008, the average single family home was $120,000, this year it’s about $100,000…a whopping 20% drop!  Ouch!

So what’s the best course of action if you’re in the real estate market of 2009.  Well, it depends on which side of the market you’re putting a stake in the ground for.

Buyers…

If you’re buying a home, the combination of record low prices, great interest rates, good inventory and the tax credit make a very strong case taking a good look at your options, doing your research and acting responsibly and decisively.  Nothing lasts forever…this perfect storm won’t either.

Sellers…

If you’re selling your home, step back and take a birds eye view of your surroundings.  You might be surprised by how much competition is surrounding your dwelling.  Study the numbers intently.  This starts by ordering an appraisal or commissioning a well prepared Comparative Market Analysis by a seasoned real estate professional.

Be realistic; you’re probably not going to make a ‘killing’ in the profit department, but if you play your cards right, you don’t have to get taken to the cleaners either.  Homes which are priced right are selling.  It’s just that the term ‘priced right’ is a moving target.

If you’d like a more detailed analysis of your specific neighborhood, contact me at info@auduhomes.com.  It’s important to note that the stats for every neighborhood in Grand Rapids, MI and the surrounding areas are unique.  This is not about a one size fits all approach.

Copyright 2009  Audu Real Estate  All Rights Reserved

While the number of homes being Sold under 'special conditions' a term which is a euphemism for distress sales in Grand Rapids, MI trended slightly downward in March, home owners will still be dealing with the impact of so many homes in 'crisis' on the market this spring.

The spring market is traditionally the period for the most activity in the real estate industry.  In Grand Rapids, MI; a gorgeous day like the one we enjoyed today, is just the tonic needed to spur many potential home buyers into the buying mode.

With the tax credit available to buyers who purchase during this year, there is some expectation and hope that perhaps there is a leveling off on the horizon for the precipitous drop that has driven prices down drastically over the last couple of years.

But, the fact remains, many home sellers will still find that in order to sell their homes, it will be necessary to complete a short sale, as the amount owed on the mortgage will not be paid after the costs of the sale.  If you find yourself in this situation, there are some steps you can take to ensure that you are realistic in your pricing when you place your home on the market.

What is a Short Sale?

Short Sales are an option to consider if your home will probably NOT sell for the Amount You OWE on the Loan after you have paid all the costs associated with selling your home. 

A Short Sale is a negotiated Solution with the owners of your note (s) which requires patience and persistence.  It's not a simple negotiation.  It will require your real estate agent negotiating with a potential buyer, jumping through the hurdles to get an acceptable offer to all parties AND THEN Negotiating with the bank & perhaps their subsidiaries including the Investor who may suddenly seem to appear out of "nowhere" with a monetary interest in your property. 

The Investor is your Ultimate Money Man & makes the final decision in most cases. You  and/or your agent may or may not deal with him/her directly in the process but be assured that their influence is substantial. 

While it is true that the bank does not really want your home back...they are bankers,  not real estate agents...they DO want as much money as they can possibly get for the loan.  After all...you did agree to pay them the amount you signed for. 

Now, in situations similar to what many residents of the State of Michigan have faced recently, there are a number of neighborhoods for which the Value of the homes have dropped considerably.  First of all: KNOW YOUR CURRENT VALUE.

How Can I Determine the Value of my Home? 

It is wise to invest in an appraisal or accurately prepared Comparative Market Analysis. If you would like a referral to an honest, competent appraiser, you can contact our office.  Our team at Audu Real Estate can also provide a thoroughly researched Comparative Market Analysis. 

This is NOT the time for games.  In-fact, if you choose to utilize a Comparative Market Analysis, ask the Realtor ® to create the analysis using ONLY Sold Comparables and Expireds.  This will give you the most realistic picture of what the market in your area is currently doing.  The fact is that many homes currently on the market will NOT sell, so why use a Non Starter to determine how to price your home.  Focus on the Success Stories...the homes that have SOLD to increase your chances of Success!

Having arrived at a price that will SELL your home, Reduce that amount by 1-5%! Then...Put it on the market.  Jump into the game like you really mean it.  Time is not your friend in this process.  As more homes go into Foreclosure, the Value of every home may continue to trend downwards!

Many times homeowners think that because they are not going to be getting much out of their home, they are giving the house away and therefore don't really put effort into presenting  the home properly. There is also a temptation to be uncooperative about showing your home because you are resentful about having to sell it. This is a big Mistake.  We will discuss WHY trying to get the most out of your home even if you won't be taking money out of the deal is to your best advantage in a future blog post.

Copyright 2009  Audu Real Estate All Rights Reserved

We picked up two loaves of bread the other day from one of our favorite local bakeries, Great Harvest Bread Company.  Let me tell you, there are few things more singularly delicious than sinking one's teeth into a soft, freshly baked piece of bread.  And when it's challah or cinnamon bread, two of my favorites...well, it's like a little slice of heaven here on earth. :)

As we enjoyed a little break, my husband made a passing remark which went something like this...'just six things'.  Now if you knew my hubby, you would appreciate that he is a man of relatively few words, so one learns to pay attention when he dispenses them.  So, I inquired about what he was referring to.  

Well, he was looking at the label on the bread loaf and noted how simple the ingredient list was. Remember the days when bread contained ingredients that you didn't need a science degree to understand?  I picked up the loaf to see for myself.  The list...white flour, honey, eggs, water, yeast and salt.  That was it!  All that taste and flavor from just a few simple ingredients.

Made me think about our jobs as real estate professionals. At a time when there's so much hype about this and that...social media, online advertising, online networking, personal promotion etc, etc...doesn't it still boil down to just a few simple things?

My dad used to say, 'it's not about what you know, it's about who you know'.  I learned that you Treat people the way you want to be treated...don't manipulate, don't deceive...what goes around comes around.  Then there was this...'whatever your hands find to do...do it with ALL your might.'  And...always keep an open, clean heart...clear those accounts every single night.  And then one of my favorites...a simple African proverb; 'No condition is permanent in this world.' Just a few simple things, but I've found them to be vital in creating an enriching life.

Copyright 2009  Audu Real Estate  All Rights Reserved