I thought it was going to be a normal listing appointment.  The call came into the office and went something like this: 

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.

Click here for Related Short Sale Articles:

Copyright 2009  Audu Real Estate  All Rights Reserved

Unless you've been under a rock, you have heard about the furor over 'Joe the Plumber.' (Actually I understand that his full name is actually Samuel Joseph Wurzelbacher.) But at a time when 'Joe Six Pack' and the 'Bridge to Nowhere' have captured the national spotlight, it's no surprise that our attention has been riveted by the the question 'Joe the Plumber' asked Presidential hopeful Senator Barak Obama during a routine campaign stop in Columbus, Ohio.

"How Will Your Tax Plan Affect My Plan to Become A Small Business Owner?" (my paraphrased version)

Joe concern centered around his perception that his personal tax rate might be adversly impacted by the senators proposed tax plan. Thus, a worldwide debate sparked about what would be best for Joe!

Well, I've been thinking about Joe's welfare too. Because in a tangible way, Joe symoblizes everyman. Everyone of us who is wondering what to do next in the face of an increasingly complicated world. Everyone who has tried to cut through the noise and confusion and struggled to figure out what in the world makes the most sense today.

GOOD NEWS: It has occured to me that unlike the bizzare direction of much of the current political debate, real estate professionals have some real solutions at their disposal which can help Joe and countless millions like him actually reach their financial goals. The fact is that Joe wants what all of us want.

1. A Good Value for His Investment

2. Relief from Excessive Taxation

3. Something that he can call his own!

THE FACTS: Owning ones own home continues to be a solid investment. Despite, the crisis in the subprime lending industry and the subsequent economic chaos which ensued, the fact remains that the vast majority of Americans, (over 96%) continue to pay the mortgage on their home in a responsible manner. Here in Grand Rapids, MI real estate professionals have continued to sell homes despite the enormous challenges that our state has faced through this economic crisis.

MORE GOOD NEWS: The Value Proposition for Buying a Home remains a sensible way to get the best bang for your buck...especially TODAY, when we have pretty near historic lows for interest rates and a remarkable inventory of homes on the market for sale.

This week, Scott DeWolf, a manager and Senior Loan Officer with Exchange Financial completed the second part of a 2 Week Series on The Financial Markets and Loan Options for the team at Audu Real Estate. He shared these facts with our agents.

On the purchase of a $120,000 home, in Grand Rapids, MI today, the average buyer would enjoy the following:

1. An interest rate of approximately 6.37%

2. A principle, interest, insurance and tax payment (PITI) of $932/month

3. An upfront investment of 3% on an FHA mortgage and 1% on a MSHDA mortgage

4. A nice sum of $116 going towards the principle of their mortgage monthly for a total of $1392/yr

5. Access to a $7,500 TAX CREDIT through the IRS if he buys his first home before July of 2009

6. A gain of over $7,000 that he wouldn't have flushed down the toilet by paying rent! *

Compare this to paying between $700-800 for a 1-2 Bedroom Rental Unit!

*This information does not include the tax credit that homeowners get for owning a property. The gain in the example above only reflects the difference between paying yourself $116/month towards your equity rather than giving $8,400 to a landlord to pay down their equity!

So, What can 'Joe the Plumber' get for $120,000 TODAY in the Grand Rapids, MI market? Well, it turns out to be a whole lot of Value and a generous supply of homes. In fact, today a search on the local MLS revealed that there are over 4,303 homes, some of which can be viewed here.

The current housing market offers remarkable opportunities for 'Joe the Plumber' and other straight talking Americans to review the facts and determine whether they'd be best served by purchasing a home after the Tax Rebate option expires in July 2009 and when interest rates have increased OR if the better plan of action is to take advantage of some unique options which are available to qualified home buyers today!

At Audu Real Estate, we help people to make smart decisions. Buying a home may be the largest financial investment you will ever make. Don't allow the politicians, media mavens and the barons of Wall Street to scare you or cloud your options. Talk to a qualified real estate professional who can help you determine what choices will be of the greatest benefit to you Today!

Copyright 2008 Audu Real Estate All Rights Reserved

picture is courtesy of Mike Licht on Flickr.com

A blind date has got to be one of life's scarier moments! Many of us have been the recipient of this form of 'relationship assistance' at some point in our lives.

Although, it's exciting to not know exactly who you will be meeting, the experience is fraught with much angst and trepidation for precisely the same reason...you don't know exactly what you'll get when your date shows up in person!

Today, online dating has spawned hundreds of thousands of successful unions.  However, we all suspect that for every success story, there are oodles of folks who don't have a storybook outcome. 

We all worry about the potential for this:

• A person whose in person appearance is not even remotely connected to how they appear online

• Fake Testimonials which promise more than they deliver

• Individuals who are not what they purport to be...ie the 'pretend doctor' syndrome with fake credentials

These issues are also a concern for millions of consumers who are now going online to select professional services like those provided by members of the real estate community.  Data from the National Association of Realtors indicates that more than 80% of all consumers will utilize the Internet as a part of their selection process for choosing an agent and/or home.  Selecting the right agent for your specific concerns can make all the difference in the world.

Although, there are no guarantees that even your best efforts will yield the results you desire, taking the time to do some preliminary research will greatly enhance your prospects for a successful match.  Let's examine some critical aspects which you should consider as you review potential prospects.

Do You Know if they're the Real Deal?

I mean this literally.  Make sure you're dealing with a real person or business.  Do some checking.  It's pretty easy.  Here are some suggestions:  Contact the local real estate board to inquire about their membership and status.  If they indicate they hold certain awards or designations, call or go online to see if they are on the membership roster.  Google the physical location/address and if you still have doubts, do a drive by.  If things don't check out at this basic level, there's a problem.

Are their Products Visible?

You'll be hiring a real estate agent to market your home.  The disappearing agent who sticks a sign in the yard and NEVER calls is well documented in real estate folklore. 

But what about the disappearing listing? When the home is placed on the market, it becomes a part of the real estate companys' listing portfolio. 

Did you know that there is a dramatic difference between the levels of exposure which your home may receive on the Internet? Did you know that your agent's understanding of Search Engine Positioning and Optimization will be key determinants of your exposure?

For instance, a good online real estate agent can literally put your home on the map...the google indexing map that is.  Imagine being able to say to your friends and family...did you google my home?  If you're competing with 50 other homes for sale in your community, this may make all the difference in the world.

Do They Know What They're Talking About?

Here's the area where the Internet can be of the greatest benefit.  While an increasing number of agents and their agencies have websites, these will provide you with only static information about their listings and services.  To dig deeper, it's prudent to see if the agent you are considering also writes a blog.

Blogging provides a tremendous amount of benefit to the consumer who is in the process of selecting an agent.  For starters, it can save you TIME!  In reading a good agent blog, you will be able to determine the areas of an agent's expertise, their style with clients, the kinds of transactions they handle, and the way they resolve conflicts and solve problems.

Can You Interview them Without Extra Hassle?

You'll find that reading an agent's blog is similar to conducting an interview.  What's great is that you can e-mail or respond in the comment section if you have any additional questions or would like clarification on certain issues.  This type of dialog can be tremendously informative and provides a great platform to become comfortable with someone before hiring them for the job.

It's important to hire the right agent to get the job done.  Using this simple list will improve your chances of selecting someone who has the skill and personality which will be most in alignment with your specific needs.  If you are in the Grand Rapids, Michigan area and are looking for an Online Real Estate Expert, the real estate specialists at Audu Real Estate would be happy to explore how we can assist you.

Where Should you be looking?

Our listings are advertised in a number of Venues which include:  our website, numerous blogs, the Grand Rapids Association of Realtors Multiple Listing Service, the NAR (National Association of Realtors), Zillow, Trulia, Real Estate Shows, Google, Yahoo, Oodle, Twitter & Flickr.  Contact us to discuss how we can create an Internet marketing strategy which makes sense for you!

Copyright 2008  Audu Real Estate  All Rights Reserved

In a real estate market in which just under 1 out of 2 homes which are actually SOLD are Short Sales or Foreclosures, more home sellers in the Grand Rapids, Michigan area are inquiring about if a Short Sale may be a viable path to consider.

It is no secret that there has been a precipitous slide in home prices over the past year.  This coupled with the sub-prime mortgage mess has placed some home owners into a situation in which the Value of their home is LESS than what they currently owe  on their mortgage payment.  In some cases...way less.  As a result, some home owners are bringing thousands of dollars to the closing table to make up the difference owed to the bank.

But what can you do if you don't have Thousands of Extra Dollars sitting in a bank, savings or retirement account?  Unfortunately, this is a question, many home owners are asking.  Individuals who have to move due to a job loss, illness or divorce.  Individuals who can no longer afford to stay in the home they bought.

Short Sales are complex real estate transactions.  Although banks do not want to 'own' real estate, they are often less than cooperative in situations in which the debt obligation to them will not be fulfilled.  To make the case to the bank about the specifics of your situation and your intention to try to fulfill your obligations to the best of your ability, it is wise to hire a real estate agent who has successfully completed Short Sale negotiations and who understands the intricacies of the process.

There are several stages within a Short Sale Negotiation.  The first determination is to gain a comprehensive understanding of your specific situation.  Questions which need to be answered include your payment history and a complete analysis of your financial resources; including a detailed rendering of any extenuating circumstances which may impact your ability to repay your obligation.

The home in question must also be verified through a market analysis to substantiate the loss in Value.  This will often include not just a real estate broker evaluation but also an independent appraisal or Broker Price Analysis from another source.  Then the home must be marketed aggressively, as NOTHING proceeds forward until you obtain a viable buyer.

Once an offer is tendered, the real 'fun' begins.  In some instances, we have encountered Loss Mitigation Specialists assigned to handle up to several hundred files at a time.  The pressure on them is enormous and they often fail to answer their phones or respond to any attempts of communication.  It is here that hiring the RIGHT agent makes all the difference in the world. 

It is important that your real estate agent/broker possess the following qualities when negotiating a Short Sale.

1.  They must UNDERSTAND the process...knowledge of the different aspects of foreclosure & short sale

2.  They must KNOW how to price your home to actually SELL

3.  They should have a good INTERNET presence to attract the largest pool of buyers

4.  They must be PERSISTENT in their negotiation efforts

5.  They should have an inherent grasp of the DETAILS to ensure that all parties remain informed

6.  Your agent must be DETERMINED to represent your best interest

Successful Negotiation of Short Sales is a mandatory element of the training which the agents of Audu Real Estate receive during their 1-2 year apprenticeship.  Audu Real Estate has successfully short sales on behalf of our clients. 

We strive to conduct our negotiations in a way which honors the dignity of those involved and protects their privacy.  If you'd like additional information or a private consultation regarding your Short Sale options, please contact us at: info@audurealestate.com.

Related Links:

Additional Real Estate Short Sale Articles by Audu Real Estate