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All About Grand Rapids Real Estate information & insights

Blog by Lola Audu
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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All About Grand Rapids Real Estate information & insights

Chasing Down The Market... Risky Real Estate Games & Gambles

Feb. 26, 2008

War paint

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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When Life Delivers Lemons...Squeeze Out the Lemonade!

May. 16, 2007
Categorized in: Home Selling/Buying Tips

If Life Throws You a Lemon...Squeeze Out the Lemonade!

Earlier this year, Grand Rapids, Mi was in the national spotlight.  A native son, the former President of the United States, Gerald Ford came home to rest.  The harsh cold wintry conditions were no deterrent for thousands who waited patiently in line for up to 8 hours to pay their respects.  The next morning, the crowds had thinned out & our real estate team headed downtown.  The line for the viewing extended out the Gerald Ford Presidential Museum,across the bridge over the Grand River & snaked through the DeVos Hall several times before exiting at the door.  When we arrived at 10:30, a secret service agent informed us that the viewing was concluding at 11:15 a.m. and the line was now a 2 hour wait.  He suggested we simply sign the guest book & make our departure.  I decided that we would stay in line. 

As the line inched forward & then began to move a little more rapidly, we anxiously looked at our watches...11:15 was rapidly approaching.  Although all seemed lost, I kept on repeating to my team..."We are on the viewing line!  I don't know what those who are turning around came to do, but we came for a Viewing & we will remain on the Viewing Line." 

11:15 came & went.  We remained in line, crossing the bridge & finally had clear sites of the museum door.  Although no more people were joining the line, those who were in line were allowed to continue to move forward.  When we reached the door, to our surprise, we were greeted by the children of President FordSteven Ford shook my hand & when I told him that I was praying for him, he said, "You don't know how much that means to us."

We payed our respects that day in tremendous gratitude for the life of a great leader & Our President.  We later heard that the line had remained OPEN at the Special Request of the Ford Family.  This experience really showed me the power of perservering & not giving up!   We also learned another important lesson that has stuck with our team to this day.  Whenever anyone repeats dire statistics about the real estate market in Grand Rapids, Michigan, we recall the lesson we learned from being on the Viewing Line. We've decided that we are on the Selling Team.  We've decided that the houses we represent will be in the Homes Sold Statistics.  Yes, this is our choice & it's a Quality Decision.  Regardless of how long the line looks or how slim the chance, we know that all things are possible to those who believe & work hard.  So if you're a home owner who has determined to SELL your home, call us...We're the Selling Team.  In preparation for your impending success, here are a few tips to Get You Started.

 

Remember LESS is Sometimes MORE

Obtain a well researched Market Analysis (10-15 pages) from Audu Real Estate.  This invaluable guide to pricing your home is an Excellent Starting Point.  We will advise you on strategically positioning your home to create optimum interest & generate showings.  Over-pricing NEVER works in this type of market.  Rather, let us tell you  about a tactic has brought many sellers multiple offers THIS year.  One happy seller went to the bank with $14,000 ABOVE asking price & paid NO ConcessionsContact us to learn about our comprehensive strategy for marketing your home.

 

Set the Stage for Success!

Get your house ready & then Stay in Ready Mode!  Audu Real Estate offers FREE staging consultations to our clients to make your home look & show it's best.  Most of the items we'll use...you already own.  We also provide a written list of all our recommendations.  Our website & our Blogs generate thousands of hits every month & multiple pictures of your home will highlight it's best features. Selling your home demands that you give yourself every advantage.  Audu Real Estate specializes in Selling homes & Presenting them well. Several homes in our inventory have recently closed or received offers.  We're ready to help you be the Next Home to Sell in Grand Rapids, Michigan!

Promote Profusely!

Times have changed, you've got to mix it up!  Today's buyer is looking in places on-line that you may not have considered.  Most of them start looking 6-12 months before they buy.  Real estate blogging has become on of the most important new promotional tools in the emerging marketplace.  I say emerging because we frankly cannot accurately determine the enormity of the impact of Web 2.0...but we know that some of these developments are going to change business as we know it forever. 

Along with blogs have come a number of important New sites to be aware of when promoting your home.  You may want to consider utilizing these to enhance a traditional MLS listing.  At Audu Real Estate, we have experienced results & leads through our Blogs and can also discuss the pros & cons of supplementing your listing with other listing portals like trulia.com or Craigslist.  You don't have to be the expert when you can simply call one!  Call Audu Real Estate...We're the Selling Team!

So we say, Down Market...No Problem,  Lots of Houses for Sale...No Problem,  Home Expired...No Problem,  Home Needing a Short Sale...No Problem.  We believe that when Life throws you a Lemon, the very best thing you can do is Determine to Squeeze Out the  Lemonade!

 

How Will You Know When You're Really Ready To Make a Move?

Mar. 21, 2007
Categorized in: Home Selling/Buying Tips

How Will You Know When You're Ready to Seriously Consider Making A Move?

 

 Driving home from work, you notice that your next door neighbors did it last night.  You're sure it wasn't there when you left for work early this morning, but now it...the For Sale sign...is boldly strutting it's stuff on their front lawn daring you to pull over & surreptitiously swipe a flyer from the over-stuffed information box.  They've  put their home on the market!  You find the urge irresistible...Your must know what price they are asking for their home!

You may have been mulling over the idea of putting your house on the market for some time. Or, perhaps, it's a sudden turn of events like a job transition or change in life circumstances which propels this topic front & center.  Maybe, it's the unrelenting curiosity of wondering just how much money can currently be drawn off the piggy bank of home equity by a sale this spring.  All these reasons still beg an answer to the question...Am I ready to seriously consider making a Move?

Here are Some Simple Questions to ask Yourself to Determine if Now is the Time & if You are in a Position to Make A Move.

1.  Can I Afford to Move?

  • This question has increasingly become the cornerstone of the decision for many home owners.  Property values in many locations have dropped within the last couple of years eroding the home equity in many homes.  An accurate appraisal of the value of your home is a necessity. You may want to consider ordering a professional appraisal and obtaining a Comparative Market Analysis from a real estate broker to assist you in determine the market price of your home & the costs associated with selling.

2.  Do I Have the Motivation to Move?

  • Wanting a nicer, more expensive house is a desire...a wish.  Being unable to navigate a 2 story residence where all the bedrooms are in the upper level is more of a need...unless you are OK with sleeping in make-shift bedroom quarters in the living room.  Write down your motivations to move.  Then really look at them.  Are they wants, wishes or needs.  Then re-consider Question #1.

3.  Do I Have the Time to Move?

  • This may seem at first glance to be a ridiculous question.  But this is a very serious question as getting a house ready for sale and going through the process of showings & Open Houses and then finally moving and packing is very time consuming.  A decision like this is best made with the input of all family members.  Children or spouses who fail to buy into the effort to keep a home in showing condition can seriously compromise the successful sale of a home.

4.  Do I have the Money to Move?

  • Moving is costly.  Assuming that you will have a profit on the sale of your home, count the costs before you place your home on the market.  Will you need money towards a down-payment for your next home?  Are there bills that should be paid off so that you do not experience undue financial stress if your house payment increases?  Will you want to purchase new furnishings or appliances? 

Considering these simple questions prior to placing your home on the market will bring focus and a higher likelihood of success. These questions are not all inclusive of all the criteria which should be considered when making a determination of if the time is right for you to move.  They are more like the boundaries of a fence which provide a framework of issues to resolve or work on.   If you would like a detailed analysis of the value of your home in the current market and additional tips to ensure your home is properly prepared for sale, please contact Audu Real Estate or call 616-791-0511

Staging Your Home for Memorable Showings!

E-Neighborhood Reports Offer Valuable, Well Researched Data For Homeowners

Worrying, Wanting & Waiting...Overcoming Emotional Hurdles During a Home Sale.

How to Loose 2 Million Dollars in On-Line Home Equity!

Spring Time Open House Search for West Michigan.

This series was inspired by an blog post by the realestatetomato.