Christian Real Estate Professionals : Michigan: Grand Rapids

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

When you take a look at things in black and white, you see things in a different way.  This past year, I've taken several snapshots of a variety of areas in Grand Rapids, MI and converted them to black and white images.  This slide show done with Real Estate Shows captures some of these images which are as diverse as a giant cabbage rose at the Fulton Street Farmers Market to a downtown highrise taken from and adjacent parking ramp.  To view more of my images from my walk-abouts in Grand Rapids, Mi....vist my Flickr profile.

Have you ever bought a book because of just one chapter?  Or gone to a restaurant because you just love one singularly scrumptious dish?  I have...I bet you have too.

In a world of plenty and an overwhelming abundance of choices, standing out from the crowd is an important part of business survival.  This past week, we drove downtown to check out a new restaurant offering in the Grand Rapids, Michigan area.  We'd heard about the Winchester from some friends.

The Winchester is a new gastro pub located on 648 Wealthy St. SE.  Some friends had urged us to check it out.  Stepping into the restaurant revealed the validity of the recommendation.  Every table was full; and at 5:15 there were very few spaces left at the bar.  Two women noting my plight, waved me over and began to wax rhapsodical about the place.  I looked at them closely...they weren't drunk; they were simply true fans who had found something good and wanted everyone to know about it!

As I grabbed a menu to go, I knew that I'd be back.  The fish tacos are calling my name. :) 

Today, being a 'jack of all trades' will be an increasingly difficult job to maintain.  At a time when jobs are being lost by the millions on a monthly basis, it's imperative that professionals of all varieties take the time to understand WHY certain businesses such as the Winchester are flourishing during challenging economic times.  Personally, for me it all boils down to the 'experience'.

I think that there are a few significant elements which help to determine whether an experience will be memorable for the consumer or simply fade into memory.  If a business or business professional concentrates on these issues, they will greatly increase their chances of success in any economy!

Create A First Class Experiences...

In a world overflowing with mediocrity, a first class experience stands out.  It's a little counter-intuitive, but think about it...if you had limited resources, wouldn't you want to get the best bang for your buck? The Winchester is located in a historic building which has been gutted to the core and lovingly renovated.  The owners are planning to move in to an apartment above the restaurant.  Now, that's true commitment! Those who create consistent first class experiences for their clients and offer more than they promise will be big winners.

Get Rid of Unexpected Surprises...

People don't like surprises.  There's enough stuff making folks anxious these days and most people prefer to pay for an experience which is predictable.  Witness the success of franchise organizations.  But what is lost in the typical franchise experience is uniqueness.  The thing about humans is that we are unique (hence the term individuals) and we crave unique combinations.  Any business which is able to marry the benefit of a guaranteed service proposition with a unique element or value which stands out from the crowd will benefit in a time of economic uncertainty. 

Provide A Value Proposition To Your Menu...

As I browsed the menu I picked up at the Winchester, I noted that most of the items were less than $15.  I could count on having a dinner which wouldn't break the bank!  No wonder the place was crowded and full of neighborhood regulars.  Great food and great value.  An unbeatable combo for sure.

As real estate professionals, there's much to take home from this example of a new restaurant which seems to be thriving when many businesses are fading.  It's easy to get caught up in the gloom and doom or to spend our time chasing the new formula for success when in reality, the recipe is quite simple

Consumers want a First Class Experience that Doesn't come with Unexpected Surprises and which Provides Good Value.  It's really not that complicated.

Copyright 2009  Audu Real Estate  All Rights Reserved

Last night, we had a pre-Valentines Day Celebration.  We attended Opera Grand Rapids performance of Donizetti's 'The Elixir of Love.' This was preceded by dinner with some friends at the University Club during which we enjoyed the expansive view of the Grand Rapids skyline.

The Elixir of Love is a touching love story with some good comedy thrown in. The happy ending in which true love eventually trumps class differences, competition and financial hardship is quite different from some of the more somber dramatic operas with tragic endings.  The show is running for two day, February 13 & 14, 2009 at the DeVos Hall.  There was a good crowd on opening night.

Partly because we'd planned the evening at the Opera and partly due to sheer busyness, no dinner plans have been made for Valentines Day itself.  So, this morning, on the spur of the moment, we decided to see if there would be any chance of getting into any of Grand Rapids, MI finer restaurants.

Well, we were not surprised to learn, that Valentines' Day is recession proof!  Most fine restaurants in Grand Rapids, Michigan are solidly booked unless one wants to eat at near midnight or shortly after lunch!  This is good news.  Apparently, love is triumphing over all the doom and gloom of economic recession at least for the time being.

As for us...it was off to the grocery store to get some nice steaks and trimmins'.  The roses arrived earlier in the day and they are simply beautiful. They'll decorate the dinner table tonight.  So here's to you for a Happy Valentines Day and hoping that regardless of where you are, it's a day in which you take the time to embrace and enjoy those whom you love.

Grand Rapids, MI 2009...

Homeowners in Grand Rapids, MI have witnessed a startling increase in the rates of homes sold through foreclosure sales and short sales.  In the early portion of 2007, the percentage of home sales that were 'crisis sales' hovered between 14% - 16%. 

But by the end of 2008 and into early 2009 the numbers had escalated dramatically to account for over 70% of the homes sold by the members of the Grand Rapids Association of Realtors Board.

Selling a home within this type of environment requires a different approach. 

Although marketing a home has never been easy, the challenges of the current crisis require a firm resolve and focus to do whatever it takes to succeed. 

The Truth about this Market...

A very different mind set is required...that is IF you intend to sell your home within the next 12 months.  Now, one important note:  this market is not for everyone.  If you have recently purchased a home or don't have a compelling need to move such as a change in life circumstances or employment, this may NOT be your market.

However, there are some things which you can do to enable a more efficient process if you have to sell your home for less than what you owe on the mortgage aka as a Short Sale.  Here they are:

Document your financial hardship...

You will be required to give a fairly detailed accounting of your financial condition which will include statements from all bank accounts, investment accounts, tax records, a credit report, and a letter documenting your situation.  Be prepared to submit this documentation in an organized fashion and include a letter/statement which authorizes the bank to speak to the appropriate professionals such as your real estate broker if your home is listed.

Set the Stage...

Just because your home is being sold under less than ideal circumstances does not mean that it should be portrayed this way in your marketing efforts.  The goal of a short sale should be to sell your home.  Remember that your home will be competing with potentially hundreds or thousands of homes. 

Unless a home buyer falls in love with your home, you won't even have the chance of negotiating a short sale. You may also inadvertently attract even lower offers from buyers who smell desperation within the mess.  It should also be noted that home buyers are often wary of the long drawn out process that the negotiation of a short sale requires so make it worth their while to wait!

Price to Compete!

One of the most interesting points during my listing presentation is when I show home owners a map of just how many homes are listed or have sold within their community within the past year.  Most people are more than a little surprised.

There's a lot of activity happening in the real estate market right now and you owe it to yourself to have an accurate understanding of your neighborhood market.  Run the other way if an agent shows up at your door to take your listing in hand without documenting in detail WHY and HOW he/she has arrived at a pricing strategy and listing price.

Detach the Sentiment...

Proper pricing and subsequent adjustments are critical if you are to succeed.  A market rife with foreclosures sometimes makes for a 'moving target' when it comes to determining the right price.  Be prepared to make adjustments quickly to reflect market realities which will include banks unloading more of their extensive foreclosure inventory in 2009.  Emotional attachment about why this 'awful situation' should not apply to your particular home will not serve you well when you're dealing with buyers who are primarily looking at the bottom line. 

On the other hand...a good deal cannot be hidden!  We're seeing homes priced competitively getting several bids and sometimes selling above the listing price.  These homeowners took the time to understand their market and to respond accordingly.  My counsel if you're determined to Sell Your Home...is to take note.

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Copyright 2009  Audu Real Estate  All Rights Reserved