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

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.

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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