Trying to sell a home in Grand Rapids, Michigan has not been easy for the past few years due to the crisis in the manufacturing sector, the mortgage industry implosion and the glut of homes which deluged the market within the past 24 months. 

Selling a home without help as an Unrepresented Seller presents some additional challenges.  In a conversation with an experienced mortgage broker, this past week, I was surprised to learn about some unique criteria which are now pre-requisites for homeowners who are selling their own homes.

According to this source, she indicated that many area lenders are now requiring at least 2 appraisals on any home purchased directly from a home owner.  This additional expense is due to the fact that much of West Michigan is now considered a Declining Market. 

Thus homes sold by Unrepresented Homeowners aka FSBO's are scrutinized more closely because they represent a higher risk to investors. This is also why title/escrow costs are often higher for Unrepresented Sellers.

The designation of Declining Market has two significant implications for all home owners in West Michigan.  First of all, many lenders are looking more closely at ANY HOME which has been on the market for over 6 months even if the location has not been designated a Declining Market.  If a home has been on the market for some time, (in West Michigan, our average was between 9-11 months in many areas) the lender may require that the buyer put a deposit of 5% or more down for a mortgage. Unfortunately, many buyers today are unprepared or unable to come up with additional funds.

In addition, areas which have been designated as Declining Markets may experience this added burden on ALL HOMES regardless of how long they have been listed.  This contributes negative leverage to the drag that Foreclosures and Short Sales have already had on home values.

There are some lending options which may diminish the impact of these additional fees and these should be explored with an experienced lender PRIOR to placing a home on the market.  The government programs such as the FHA have really been much needed source of stability in these times. Now, more than ever...it's important to have a Strategy in place to Sell your Home.  Unfortunately, today...simply getting a Buyer to sign a purchase agreement will NOT guarantee you a seat at the Closing table.

If you'd like a referral to a highly qualified lender or need to discuss some options to successfully market and sell your home, please contact Audu Real Estate.  We are available to discuss the current Market Conditions in your specific neighborhood in the comfort and convenience of your home.

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