Grand Rapids, Michigan
Information about local real estate in Grand Rapids, Michigan & surrounding communities including Grandville, Wyoming, Jenison, Kentwood & Walker. Also, Lola Audu, CRS, an experienced Real Estate Broker shares insights and general wisdom about life and personal growth. Lola welcomes your thoughts & insights about the information shared on this Web Log.
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Jul. 18, 2008
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
May. 6, 2008
There's a simple proverb that says..."When the student is ready, the teacher will appear.
For thousands of students in Michigan, including myself, that teacher has been Gwyn Besner. My initial interraction with Gwyn was during a Continuing Education Class. I found her teaching style interesting and she definitely kept us awake!
Through the years, I have recommended Gwyn Besner to many students who through her instruction and encouragement successfully passed their real estate licensing exams. More importantly, these new real estate agents finished her classes with a clear sense of what the real estate profession aspires to be and were well prepared to launch their new profession.
Today, Gwyn is the President and Instructor for the Acme Institute and continues to teach students across the State of Michigan.
So, I am delighted to be able to have the opportunity to have Gwyn Besner participate in the Continuing Education Courses that are being offered in Grand Rapids, Michigan on May 28th, 2008.
Gwyn will be joining us in the afternoon of May 28th, 2008 to teach the Code of Ethics! This class will function for double duty! In addition to qualifying for 3 hours of Continuing Education Core Curriculum, this class will also allow members of the Grand Rapids Association of Realtors to have an interesting, live interactive Code of Ethics class...one of the requirements for ALL members of GRAR.
Don't Miss this Opportunity!
Here's a Description of the Course that Gwyn will be teaching on May 28, 2008...
Honesty, Integrity and Commitment are not just buzz words. As a REALTOR® those are the promises you make. The public knows that because you can use the term REALTOR® after your name, they can expect nothing less from you. Do you really understand the promises you are making? Join us for a fresh perspective of the Code as we celebrate its 100th birthday.
This class contains the NAR required curriculum for the Second Cycle of Quadrennial training and has been approved by the Department of Labor and Economic Growth of the State of Michigan for three hours of continuing education, including the mandatory two hour core curriculum (legal update) #K299, K5047. Presented by Gwyn Besner of The Acme Institute Approval code K348
Class Starts at 1:00 p.m.
Registration begins at Noon* Participants in the Blogging Courses can register for all 3 courses and obtain 7 hours of Continuing Education in one day and have all your requirements for Continuing Education, Core Curriculum/Legal Update AND Code of Ethics in one day! If you register for all 3 Courses...We'll Feed You Lunch!
Place: 660 Kenmoor SE, Grand Rapids, MI 49546
Click this LINK to REGISTER for the Code of Ethics class! (the registration button is at the bottom of the page)
Click this LINKG to REGISTER for Blogging Continuing Education Classes!
Related Links:
Information about the Blogging & Technology Continuing Education Courses on May 21 & 28th, 2008
State ID K1062 & 1063 Instructor Approval Code ~ Audu Real Estate K355
Download Registration Form for Blogging & Technology Continuing Education Courses
View Video of Class held in Grand Rapids, Michigan in 2007
Click to read more from Gwyn Besner's blog...
Visit Gwyn Besner's Website...
Mar. 8, 2008
 I was in my office some time back when a call came in. The caller was frantic! As the words tumbled out, I slowly began to decipher what was being said. The voice on the other end was panicked as they described a most bizarre situation. These were my dear clients. We had successfully helped them to purchase this lovely home several months prior. They had happily settled down in their new home...and now this!
The drama had started with a knock on the front door. When they opened the door, a grandfatherly looking man dressed in a nice suit introduced himself. He indicated that he had just seen a notification that their house had just been foreclosed. He was wondering if they aware of this? He indicated he had dropped by to let them know about some options for folks in their situation. Talk about jaw dropping surprise!
The story from this gentleman was eerie. For one thing, he knew that they had recently closed on the home and that there had been some liens on the home. In this particular situation, there had been a divorce which had left some loose ends hanging which had to be cleared prior to closing. As the buyers agent, we had ordered and checked the title-work to make sure that everything was clear prior to closing. However, there were enough significant details conveyed to me in the conversation with my distraught clients, that I too began to wonder if I had missed something.
Fortunately, he had left his card. I immediately alerted the listing agent and then initiated an urgent call into the title company. The title company verified that there were no outstanding liens at the time of closing. My next contact was to the county clerks office and they also had no indication of any foreclosure filing. You know who my final call was to...Mr. Santa Claus himself. You can rest assured that I was NOT to wish him a Merry Christmas!
Scams within the context of real estate transactions are increasingly common. Last year, the Grand Rapids Association of Realtors added a link on its website to allow anyone to report suspicions of mortgage fraud. It was a very necessary response to try to combat the increase in loan fraud. But the assault against customers has not been limited to just loan fraud. In the Grand Rapids area, we have had a number of reported cases in which individuals have been promised assistance with saving their homes from an imminent foreclosure, only to find out that they had been scammed hundreds or thousand of dollars and eventually lost their homes.
Yesterday, I received a call from a gentleman in another state who had found my blog post/series on short sales and foreclosures on line. He indicated that he wanted to know if I had heard about a certain company. Apparently, they had missed a payment or two and his wife in her acute distress, had contacted a company which promised that they would save their home from foreclosure. As long as they paid them $1,200 of which $600 was due that night! Whoa!
This gentleman had a nagging sense that something was not quite right. That gut level intuition is one of the most powerful sources of protection when dealing with a scam artist in real estate or any other area. Many scam artists are able to prey on people when they are most vulnerable because there is a tendency to grasp for any shred of hope in a desperate situation. It is most critical during these times to put the brakes on ALL hasty decisions.
The reality is this...It is not a Quick, Easy or Simple Process to Loose Your Home. AND...there are a number of options and solutions which you can explore in a reasonable manner so you can make an informed decision about what makes the most sense and is best for you.
Here are a few suggestions that might find helpful:
1. Avoid making hasty decisions when in a crisis. Recognize that your judgement might be impaired.
2. If something feels not quite right...Wait, Ask more questions, Verify
3. Report suspicious activities or proposals to the appropriate authorities
4. If someone offers to save you from a foreclosure and asks you for money to do it...DON'T instead..
5. Contact a Licensed Professional with knowledge about the process of foreclosures and short sales and requests a FREE Consultation to help you determine the best route for you to pursue.
And now to finish the story about Mr. Santa Claus. When I confronted him about his duplicity, he instantly retreated. He indicated that he must have made a mistake and got the wrong address. He was so sorry to have caused any distress & asked me to apologize to my clients. He had been given this list and was just trying to do his job. I told him that the only thing he was sorry about was that he had been caught and that he would be reported to the authorities. The line went dead...The only information on the card was a company name and an out of state telephone number.
Copyright 2008 Audu Real Estate All Rights Reserved
Feb. 26, 2008
In Grand Rapids, Michigan it's an argument that every real estate agent has heard at least once. In the opinion of most...one time too many. It goes something like this. I'd like to sell my home, but I need (X) amount from it. I know that you are recommending I list my home for 10 ~15 % Less than (X) but I figure that if buyers are interested, they will make an offer. I refer to this argument as the decision to Chase Down the Market.
Chasing Down the Market has become a real estate consumer sport. Homeowners gambling with the odds of Selling their home before the market swings further south usually have several options up their sleeves. These include: Lowering the Price of the home, offering incentives to buyers such as 3 months of FREE Mortgage Payments or providing decorating allowances. These are held out like chips to bait potential home buyers.
Sometimes, these gambits work and attract an offer. But, it's usually not the offer that was anticipated or expected. What we are seeing in Grand Rapids, Michigan and across the country is that buyers for homes are remarkably well informed. Incentives are no longer viewed as reasons to purchase. Instead, savvy buyers dig deeper to try to determine WHY Incentives are necessary.
Savvy buyers understand that irregardless of the market, Accurately Priced Homes will Sell even within a challenged market like Grand Rapids, Michigan within 3-4 months.
It's particularly instructive to note that Banks who own a number of Foreclosed homes in the Grand Rapids area right now also understand this. In fact, these banks will often lower their prices several times within a relatively short period of time simply to ensure a quick sale. This tactic has led to an increase in the sales of Bank Owned Homes to a level which is almost 50% of ALL Current Sales in the Grand Rapids area.
The implications of so many foreclosed and short sale homes on the market has had a devastating effect on homeowners who are Chasing the Market Down. Last year, the Grand Rapids Association of Realtors statistics indicated that homeowners who did not sell their homes during the first 5-6 months eventually Sold their homes for an average of 25% Less than the Listing Price. This was in stark contrast to those who through pricing their home properly to reflect the current market usually Sold within 3-5% of the Listing Price.
Thus the Penalty for Chasing the Market Down and Loosing in 2007 was about a 20% Reduction in Net Proceeds. This did not take into account the investment of additional time on the market or the inconvenience of two mortgage payments in some cases. Unfortunately for home owners, playing this game in 2008 will be even more risky.
With foreclosures and short sales on the rise, and a large influx of homes anticipated for Spring Market of 2008, the Grand Rapids real estate market simply does NOT have the elasticity to absorb all these homes for a couple of MAJOR REASONS. The most significant issue is the Lending Crisis which has dried up funds for a large number of potential buyers. Secondly, since many areas of West Michigan have now been designated as Declining Markets, potential buyers are being asked to come up with larger down-payments and sometimes having to pay higher interest rates unless they qualify for a government funded program.
In my view, Chasing Down the Market is a risky gambit. The twists and turns of gambling in this market require a pretty strong constitution...one which many home owners are ill equipped to maintain. The closer your initial asking price is to the Bullseye, the better your chance of obtaining a fair price and the pre-requisite mortgage for a buyer which allows you to move on with your life. Less exciting perhaps...but certainly easier on the stomach wouldn't you say?
Copyright 2008 Audu Real Estate All Rights Reserved
   
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 Perhaps the most daunting task facing Multiple Listing Systems (MLS) systems and real estate boards today is issue of Relevancy. It would be misguided to assume that the search of choice for real estate transactions in the future will necessarily be the local real estate MLS. Unless significant changes are made which combine the best features of expertise and professionalism amongst MLS members with the enhancements available through technology today, the industry may find itself sidelined as the destination of choice for professional real estate information.
Today, I came across a Slideshare show by Frank Meeuwsen entitled "Nine Big Ideas of Social Media." Meeuwsen essentially details the movement from the static nature of Presentation to the vital energy engaged through Presence via the use of Social Media. In some ways, the concepts he explores are an interesting way to think about a pathway by which the fairly static medium currently employed by most MLS systems might engage the consumer and create a more dynamic process.
Here are my thoughts on some real estate applications.
How Social Media Concepts Could Transform the Nature of MLS Search....
Social Media is About:
BEING OPEN: MLS Systems have learned this the hard way. Information is powerful when you're the acknowledged source expert and are willing to share. It is poisonous when perceived to be withheld.
RE-MIXING: MLS Systems will be challenged by their competitors to put information together for the consumer in a way that creates relevance. Sure it's great to know what's for Sale, but it's better to understand the underlying context and implications of that information. Consumers want to know whether a home is a good deal or not. Fear that they will avoid the real estate agent once they get this information is probably unfounded. When a Re-Mix works...the creator or aggregator of the content reaps the benefits. A well-designed MLS system could channel this positive cache towards the benefit of its members.
SHARING: People love to share stuff. The Internet has made this oh so easy. Why don't we take advantage of this? MLS systems could adapt to this trend by making it easy for viewers to share great listings or videos of great listings. How about enabling agents to allow the general public to share their thoughts on a listing? There's a remarkable amount of untapped connectivity hidden within the vast listing data pools residing withinmost MLS systems.
TELLING & LISTENING: Make it easy to talk. MLS systems could incorporate into the their systems options to instant message the agent, create links to agent blogs or websites, connect surfers to an agent's twitter account or download audio blog or recording about the home. MLS systems need to create more avenues for potential clients to interact and engage with agents long before it's transaction time. Social Media is about Relationships. So is selling real estate.
PLAY: Don't be so serious. Yes, real estate is about big business...but before that, it's about homes, families and individuals with diverse tastes and interests. Most MLS systems are incredibly boring places to visit if you're not looking for a specific listing right now. However, an MLS system could capture the mind of the next generation of consumers by creating a complementary site for playing the most fascinating past-time most Americans can't seem to get enough of...Buying, Selling, Fixing, Flipping & Trading Real Estate. Perhaps Second Life....real estate style! (Just kidding)
RELAXING: Goes along with play. Be less stodgy. The average consumer is much more relaxed in their approach to life. As professionals, we could take a lesson from the playbook & relax...just a tad. What about an MLS system in which the neighborhood got together virtually to share what was going on in their community?
LEARNING: Why shouldn't the largest portal of real estate listings in any given area in the United States not also be the best place to learn about homes, landscaping, titlework, re-modelling, design elements, mortgage financing etc.? And why can't this learning take place 24/7 all around the world at our MLS sites?
CO-CREATING: The best idea may be the one you haven't yet heard. If MLS systems enabled direct feed-back from consumers in real time, we might find out ways to improve and enhance the search process in a way that creates a better experience for everyone.
RAVING FANS: Created from the Sum Total & Successful Application of all of the above!
Just curious...Are there MLS systems across the country incorporating any of these elements successfully? I'd love to hear about any experiences you're willing to share. Here's the slideshare show...
Copyright 2008 Audu Real Estate All Rights Reserved
Here's the Link to the show...
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