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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Apr. 14, 2008
 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.
Copyright 2008 Audu Real Estate All Right Reserved
   
Apr. 30, 2007
Why Shifting Into Neutral Can Fast Forward Your Advancement!
There's an oft repeated tale about how certain hunters in Africa catch monkeys. It can be very difficult to corral these intelligent creatures, so hunters have used a more inventive method...trapping a monkey by enticing him. A small jar is placed at the base of a tree with nuts or other items which may attract the monkey's curiosity.
The opening of the jar allows the monkey to place his hand in, but when he tries to withdraw it, he is unable to do so without letting go of the contents of the jar. Believe it or not, some monkeys will stay there with their hand in the jar until the hunter comes back to trap them! They are trapped because they are unwilling to let go of something they are doing which is working against them.
It's not just monkeys who get trapped by what we are unwilling to release. While, most of us would not be tempted by peanuts or sweets in a jar, it's amazing the things we will hang onto rather than release them so we can move on. As a Realtor, I witness this phenomenon all the time. The peanuts are quite conventional; I've got to obtain this Price for my house...irregardless of the market or I must have this home even though I can't really afford the payments. There may be variations on these themes, but in the end they're still peanuts...unrealistic expectations held on to at the expense of moving forward and achieving our goals & desires.
The real estate process often involves the 3 main components of this story; the Hunter, the Monkey & the Jar of Peanuts. Buyers & Sellers are the significant players in the real estate process. Sometimes, there is a tendency to behave like the monkey with the hand stuck in the jar for a few peanuts. Instead of drawing back, taking the hand out of the jar to reconsider options and listen to sound counsel, so many get trapped by the peanuts.
Peanuts are the misguided rewards that we think we desperately need. Peanuts are symbolized by the Price that the Property must be worth because so much has been put into improvements. Peanuts talk to the monkey even though they have no audible voice. They convince the monkey that if you hold on to this for long enough, you will get what you want. Peanuts lie! Letting go of false assumptions is what will bring fulfillment to the desire & this can only be done by stopping the action of holding on to those peanuts.
Holding on to an Artificially Inflated Price which the current market cannot support is listening to the Peanuts Lie. Refusing to let go of clutter that serves no useful purpose and is hindering the sale of your home traps the hand in the peanut jar. Looking for the , perfect home, in the perfect neighborhood, with the perfect neighbors at the perfect price etc. ad nauseum ensures that your dream will never become a reality because...I tell you truth...Those peanuts will lie to you & then trap you! Once you move into the perfect neighborhood, you can rest assured, it will no longer be perfect.
The Hunter represents market forces. The market needs players so it offers attractive opportunities. The number of financing vehicles, housing choices & selling tools available to home buyers and home sellers has created many options & provided a diverse variety of peanut jars. The market doesn't really care which monkey is snared by the contents of the jar. It knows that some monkeys will pass by it's offers & simply decide that peanuts just aren't' an attractive choice on the menu at the moment.
Th e Hunter also figures that a certain percentage of monkeys will recognize a trap when they see one & won't fall for the ruse. But, it gambles that enough monkeys will not figure out a very simply solution to the dilemma. Simply, let go of the peanuts, release your hand from the trap, turn the jar upside down & then you can have your peanuts & not get trapped! The monkeys who have their Freedom & Eat Their Peanuts as well are those who realize that sometimes you have to let go of an outdated or incorrect assumption or ideals in order to move forward. Sometimes, the action you take to STOP doing the wrong thing is the most important action you take because it allows you to see more clearly the best solution & option available to you.
Instead of demanding the highest price, simply stop being unrealistic. Instead of taking several jobs to support a lifestyle we cannot afford, simply stop spending more money than you make or sell your house & move to something more affordable. We would be so much further ahead. if we concentrated on simply stopping doing a few of the things that we are doing which impede our progress Instead of thinking like the monkey who is committed to getting a few peanuts out of a jar at the expense of his life & freedom, we can stop and let go of the peanuts & choose intelligent solutions. This technique works for real estate & for life!
© 2007 Audu Real Estate All rights reserved
Mar. 14, 2007
Worrying, Wanting & Waiting...Overcoming Emotional Hurdles During A Home Sale.
From time to time, I work with clients who are having a really difficult time leaving a home. Sometimes, it is a home that they have lived in for decades which holds a lot of precious memories. At other times, circumstances have changed; perhaps a job transfer which necessitate a move. It is a really difficult thing to be dealing with the normal stress of showings and a move and also wrestle with the fact that deep down inside...you're not really ready to leave...just yet.
Over the years as I've counselled with my clients, I've realised that there are a number of reasons why people struggle to let go of a dwelling...even when they know they must. One of the biggest issues is fear of the future and the unknown. Other times, it is the feeling that by leaving, they will be separated from special moments that were a part of this special space they call "home".
Here are a few simple suggestions that many of my clients have found very helpful.
 Practical Solitude
Set aside some time to alone & quiet within your home...quiet your heart, be still. Turn off the TV, listen, hear and re-live special moments. Look, really look at your home the way you would look into the face of a dear friend. Relish the moments that have been shared, the laughter, the tears, the good times, the bad...Listen to hear things that may still need to be resolved. In the stillness you will hear this as well. Take note
 Thanksgiving
Express gratitude outloud. Yes, these walls have heard a lot of things during your time within them. Why not your thanksgiving? Thank out loud for the goodness & provision and shelter that your home has provided you. Thank out loud for the many friends and family members who have found solace, refuge and friendship within it's walls. Thank out loud for the difficult lessons learned and the trials you survived. Thank out loud that you and this home exist...many homes and people no longer do. Thank outloud that your home will soon be transferred to new owners who will be the beneficiaries of the shelter your home has faithfully provided.
 Release the Blessing of Peace
A final step is to release the blessing of peace. I suggest that you go through each room, thanking silently or audibly and then releasing God's peace into the space in preparation for the new owners. This can be a wonderful time to envision the blessings that you desire for the welfare of those who will purchase your home. Different blessings can be released for different areas. For instance in the kitchen, you can release wholesome goodness in the food that is prepared & bless this center of life to be a place in which the family or individual experiences the joy of friendship and satisfaction. Remember we all reap what we sow. What you are doing for others will eventually be returned in some fashion back to you.
Many have found these few simple steps to be very helpful as they prepare to move. Even if it is not a difficult move emotionally, this process can be extraordinarily enriching.
Dec. 12, 2006
Is My Home Ready to Sell ? Quiz/Questionnaire
The Grand Rapids Real Estate Association currently has over 10,000 listings for sale. On average 1000+ homes have sold every month which means there is ample supply of homes for sale for every buyer. The good news is that homes are still selling and motivated Homeowners are exploring New Options to ensure that their home is one of them. This Quiz is designed to assist you in determining how competitive your home is the current Grand Rapids Market and can easily be utilized in any real estate market in which there is more than 6 months worth of inventory in the Current Listings for Sale. Use the Key below to help you determine your Competitive Index Quotient.
*(This tool has been designed by Lola Audu, CRS of Audu Real Estate to assist homeowners in evaluating how best to enhance their marketing options and chances for success in a competitive real estate market. It is not intended to be a substitute for professional counsel. Please contact a real estate Broker or Realtor for in-depth analysis and interpretation about your current situation)
How to Use this Questionaire: Each category has several options. Please Check all that apply. Then use the scoring index below to evaluate your score.
1. Initial Home Listing Price (Sale price refers to homes sold within past 90 days)
- A. Home currently priced above the average home for sale in neighborhood
- B. Home priced at the average neighborhood home sale price
- C. Home priced 5-10% Below average neighborhood home sale price
- D. Home Listing includes Selling Bonus to Selling Agent
2. Pricing Adjustments (Based on updated Certified Market Analysis after 30-60 days)
- A. Stay the course, Keep price the Same regardless of current indicators
- B. Revise Listing on-line to match current Average home sale price
- C. Decrease list price by 5% if necessary below revised market analysis price
3. Financing Options Provided
- A. Seller offers to pay closing costs- typically between 3-5% of sales price
- B. Seller offers to pay 1st 3 months of Buyers Mortgage Payment
- C. Seller offers buyer incentive such as Vacation/Car Rental/Cruise/Plane Tickets
- D. Seller willing to Consider Government Financing (EX: FHA, VA, MSHDA) in addition to Conventional Loans
- E. Seller willing to offer Lease with Option to Purchase or Land Contract in addition to traditional financing vehicles
4. Home Condition
- A. Home has been professionally Staged & recommendations completed
- B. Home has been cleared of excess belongings and clutter
- C. All minor & major home repairs have been made
- D. Home looks and smells clean and fresh
5. Marketing of My Home
- A. Media/Web tours available on my homes' interior
- B. Home available on Local MLS and additonal websites including BLOGS
- C. Open Houses accessible on-line
- D. Brochure box attached to Sign rider with fliers detailing home
- E. Comprehensive marketing plan includes print media and on-line options and is in writing
6. Risk Reduction
- A. Seller willing to offer and/or pay for Home Warranty Protection
- B. Seller provides appraisal by Independent appraiser to document value of listing price
- C. Seller's Agent provides detailed Neighborhood analysis of Homeowners community
- D. Seller able to provide receipts and contractors names & licenses for repairs and/or improvements
7. Flexible Possession
- A. Home seller able to move quickly once home is sold...including the day of Closing
- B. Home seller willing to rent back home as a tenant to New Buyer if homeowner cannot move immediately
8. Real Estate Agent Hired
- A. My agent has access to the MLS and advertises through this medium
- B. My Real Estate agent has earned Advanced Designations and has superior training. (EX: E-Pro, CRS, Broker)
- C. My Real Estate Agent has an agent website and is tech saavy (EX: e-mail, Palm-pilot, Notebook computer, BLOG)
- D. My Real Estate Agent works with an Agent or Assistant Team- virtually or on-site
Scoring Template: Q1. a-0, b-5, c-15, d-10; Q2. a-5, b-10, c-10; Q3. a-10, b-10, c-5, d-5, e-5; Q4. a-10, b-5, c-10, d-5,
Q5. a-5, b-10, c-5, d-5, e-10; Q6. a-5, b-10, c-5, d-5; Q7. a-5, b-5; Q8. a-10, b-5, c-5, d-5
50 or Below: In a challenging Market you will have difficulty being competitive with other homes.
50-100 : Your home may be being shown, but is being used to sell other houses in your neighborhood who are a better value.
100-150: You are fairely well positioned in a Challenging Market, but may want to enhance incentives & or pricing.
150-200: As they say "Get Packing", Everybody loves a good deal. Be prepared for Multiple offers!
© 2006 Audu Real Estate. All rights reserved
E-Neighborhood Reports- Offer Valuable well researched Data For Homeowners!
Have you ever wondered what your neighbor sold their home for? Although, we live right next door to our neighbors and may see them everyday, this type of information sometimes feels like an intrusion to ask. If you get an answer, are you sure it is the truth? You see, it is amazing how often people round up numbers when telling others how much they really made or sometimes they just plain forget. Irregardless, if you're counting on this information to provide guidance on the correct value for the sale of your home in a challenging market, this can prove to be an unreliable register of information.
There are website such as www.zillow.com or www.homegain.com which will give you information about homes in your neighborhood. I know that for at least one of these sites, you have to provide THEM with the addresses of your neighbors’ homes! I don't know about you, but the prospect of driving or walking slowly around the neighborhood writing down addresses surreptitiously is just not extremely appealing to me. And then...what if you miss one or what if a home has actually sold, but the Realtor has not gotten around to removing the sign or placing a SOLD sign on the property? Then, this valuable information which you needed to provide accuracy to your research is not available.
You can also pay for an appraisal. This is an excellent source of real estate data about homes in your general area which are most like yours. A licensed appraiser will use their skill and training to determine with a high degree of accuracy the true market value of your home. If you have an unusual or extraordinary property, this may be your only option to ensure a correct evaluation. The cost of an appraisal varies based on the data provided. Beware of BPO's, drive-by appraisals in which the Lender never enters your home, but simply drives by it and on this basis provides an estimate of your home's value WITHOUT ever entering the premises.
At Audu Real Estate, we provide a Comprehensive Report which combines a Certified Market Analysis with an E-Neighborhood Report to give a very complete body of information on the following: Houses which sold in your Neighborhood to include mortgage & financing information as well as home details, schools with student to teacher ratios and address/contact numbers, median house values, average home values, average rental rates and types of rentals, average age of the housing in the neighborhood and home ownership rates and much more. This report is between 15-25 pages and is heads and tails above the average Real Estate estimate of value. We will tour your home and then meet at our office or at your home to help you intelligently evaluate the data which we present. You make the decision about how quickly you want your home to sell and you know before you start what odds you're dealing with!
If you're buying a home, you will appreciate our ability to compare up to 4 different communities. This is a really excellent way to protect the Value of Your Investment in an Over Heated Real Estate Market. At Audu Real Estate, we know that our Buyers often become our future Sellers. Over 87% of our Business comes from "word of mouth" advertising....simply stated Referrals! As a homebuyer wouldn't you feel more comfortable knowing that the home you are buying is as well researched as the information most Realtors provide for "Seller's Eyes Only'?
Visit my website at: http://www.LolaAudu.Homelog.com to sign up for Free Updates of Every Home Sold in Your Area or to request your own analysis.
©2006 All rights reserved
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