Inspired Real Estate For Today

Are we on the verge of a transition in thinking about what qualifies as a good home location?  For decades, the dream of American homeownership has often envisioned a home with a white picket fence out in the suburbs.

The article "The Tipping Point...When Poverty Moves to the Suburbs." explored the increasing trend in foreclosures and short sales which has led to many home owners who were once thought to be enjoying the "good life" loosing their homes and enduring great hardship due to devastating economic situations.  For many folks, hard times have turned the dream of "living in the burbs" into a nightmare.

Recently, Jonathan Miller of the Matrix blog wrote a thought provoking post entitled "Suburbs are the Next Slums."  In this quote from Arthur Nelson the Director of the Metropolitan Institute at Virginia Tech, he pinpoints a situation which is being observed in neighborhoods across the country...over-building resulting in high levels of homes without inhabitants!

"Arthur C. Nelson, director of the Metropolitan Institute at Virginia Tech, has looked carefully at trends in American demographics, construction, house prices, and consumer preferences. In 2006, using recent consumer research, housing supply data, and population growth rates, he modeled future demand for various types of housing. "

"The results were bracing: Nelson forecasts a likely surplus of 22 million large-lot homes (houses built on a sixth of an acre or more) by 2025-that's roughly 40 percent of the large-lot homes in existence today."

The US population has increased moderately over the last couple of decades.  Yet, builders have built more and more homes with tons more space on increasingly larger lots all over the country.  When I drive past many suburban communities, I see subdivisions half finished, with homes which are clearly unoccupied. 

This is a major shift from most of the past decade in which homes were being built, sold and occupied as soon as the occupancy permit could be obtained.

Today, the new home market in Grand Rapids, Michigan is markedly subdued.  New home starts have fallen dramatically.  Many builders have had to leave the trade.  New homes are now a part of the short sale and foreclosure list which has increased to almost 50% of the sales activity in the area. 

As a home buyer, it is important to be aware of this trend, particularly if you are involved in purchasing a Re-Sale Home.  Most buyers who are considering a older home in a community may not think that they need to be aware of what is happening to the new construction in their neighborhood.  But they should be.  Apart from the fact that they may be missing out on a good deal, a drastic drop in the price of new homes will also devalue older homes as well.  These factors should be considered when making an intelligent offer.

There are other trends which may impact gentrification of downtown areas and precipitate on-going decline in suburban communities.  These include: the increasing cost of gasoline making it more expensive to drive long distances to work, the increase in the cost of food, the rising costs for healthcare and the challenge of job losses in many sectors of the economy. Suburbs are usually bedroom communities...not places where people go to work.  Consequently, inhabitants of outlying communities may be more susceptible to a combination of these types of economic issues.

Americans have had a long love affair with the idea of wide open spaces, where neighbors are greeted with a wave across large stretches of land...if seen at all.  This lifestyle may be seriously challenged in the days ahead. Will, the suburbs become the Next Slums?  Personally, I don't think so.  However, in Grand Rapids, Michigan...some of the most exciting developments taking place in the real estate arena these days involve the downtown area which is being rapidly transformed into a world class cityscape.  Just curious...are you observing any of these trends in other areas of the country?

Copyright 2008 Audu Real Estate  All Rights Reserved

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

Cycles of change are a normal part of life.  Day transitions into night, summer transitions into fall and eventually winters' cold spell breaks up to reveal the freshness of spring.  While we accept these cycles as normal in nature, we sometimes ignore the fact that cycles are evident in all aspects of life. 

As I look out my window and observe the snow cover, it's hard to imagine that underneath that frigid white blanket there is active life.  But there is.  It will not be evident for several months, but eventually, the ground will reveal what has been buried for it's own protection.

We can learn a lot from the way in which the earth adjust to its' different cycles.  The seasons merge gently into one another; each one revealing its' own unique qualities.  In fact, it's more than a little odd when winter tries to make an early appearance in fall or out stays its' welcome into spring.  When this happens, it's almost as though the earth is a little out of sorts with itself.

I have become more aware of the fact that in some ways, our personal and professional cycles operate in way similar to the seasons of life. There are periods when things seem dormant and almost at a standstill. On a personal basis, this may manifest as a period of limited energy or a more introspective period. It is not unusual for many people to misunderstand this and to become depressed or listless instead of allowing the natural rhythmic cycle to operate so they can revitalize.  This is nature's way of restoring and replenishing for periods of heightened activity. 

As we begin to pay attention to these cycles, we will discover that they are remarkably consistent personally and professionally. When I started my real estate career almost thirteen years ago, I fretted when I was not busy.  I didn't understand that there is a natural cycle and rythm for everything. I didn't see that less busy times were opportunities to invest time in my own education or to improve my systems so I could serve my clients more effectively. Nor did I know how to discover the optimum cycle was for my personal or professional life.  Consequently, I was prone to becoming overwhelmed because I  was afraid to relax.

Well, over the years, I've learned that learning to relax is as important as working hard.  Balance is the key to a successful life.  I've also learned to explore my seasonal work cycle.  For me, it is important to have one day a week which I do absolutely nothing which is related to real estate including blogging. I also plan regular periods for study and professional growth.  If you take the time to learn your personal seasonal cycle which determines  how you function best, you will be better able to plan for vacation, rest and relaxation.  The pay-off will be better health, more efficiency and as a result more enjoyment of your time and money.

Copyright 2008 Audu Real Estate  All Rights Reserved

I met them early one evening several months ago.  They were young, attractive and articulate.  This was going to be their first home and they had questions...lots of them.  They had been referred to me and as we talked about the process and what they could anticipate, I began to appreciate a keen understanding of their shared goals and purpose. Remarkable as they were newly weds who had mastered what many couples fail to achieve after years of married life.

Like all journeys, you can never be quite sure where the road will lead.  We started looking for properties which could double as an investment opportunity.  In a market which was still doing the upheaval dance, this was a fail-safe approach.  But, as the process continued...the desire for a home of their own which they could love and share with just their family and friends surfaced strongly.  Through it all, Therese Vandermeer, our Client Specialist coordinated the transaction with skill and patience.

The results were well worth it!  Their new home is beautiful.  It's an older home near a park which has been painstakingly and lovingly re-finished.  Unique accents like gorgeous antiqued radiators plus a beautiful kitchen make the home a place which you can fall in love with all over again...everyday. 

It's always a joy to help others fulfill their goals and dreams.  Over the years, we've received numerous hugs, e-mails and Thank You Cards.  I keep them.  These letters are meaningful reminders to me about Why I am willing to do what I do.  However, this letter was special.  You see, it wasn't written to me.

January 21, 2008

To Whom It May Concern:

After my husband got a new job, we needed to move.  Having been married just over a year, we were not planning to become homeowners so soon, but seeing that the market seemed to favor buyers, we decided to look into purchasing our first home.  We received a personal referral from a close friend to consider Audu Real Estate.  After our initial meeting with Lola Audu, we knew we had found the right real estate agency.

Lola was very personable and genuinely interested in our needs.  She asked us what kind of things we were looking for in a home, but she also asked us what our personal interests were and where we saw ourselves in the future.  We enjoyed the conversation and were impressed by the holistic approach that Lola took.  In addition she explained many of the home buying process basics.

This was great as we were unfamiliar with the process.  Lola stressed that she wanted us to understand every step so when the process ended, we would know how we got there.  We left that initial meeting every excited about our decision to pursue home ownership.

After choosing some homes we were interested in seeing from the website, we were connected with Therese VanderMeer, one of the agents at Audu Real Estate.  She communicated with us regularly by phone and e-mail in order to set up home showings.  Her accessibility and professionalism were wonderful.  We were on a bit of an accelerated time schedule as we needed to buy a home and move within just a couple months. 

Therese worked diligently to set up showings and was very flexible with out work schedules.  Any time we had a question, Therese was more than willing to take the extra time to explain things to us or look up the information we  needed.

When we choose the home we wanted, Therese and Lola walked us through every step of the process from making an offer to having an inspection and finally closing.  On the day we closed, we were so excited to be homeowners.  Therese and Lola gave us a beautiful and heartfelt gift as well as a very touching card.  We were so amazed by their generosity and the personal touches of the gifts.

We would highly recommend Audu Real Estate to anyone wanting to buy or sell a home.  The professionalism, customer service, and integrity we experienced made what can be a very stressful process so wonderful.  We love our new home and feel very blessed to have had the privilege of working with Audu Real Estate!

Sincerely,

Two Satisfied home owners 

This is why I do what I do everyday.  It's not about the size of the deal or how much money I can make.  It's about helping people to achieve their goals.  It's about Celebrating the Joy and Satisfaction that comes from owning a place of one's own.  It's about knowing that a family or individual was well served and is happy. There's no commission big enough to deliver all of that!

*They gave me permission to use this letter & their names.  However, I would like to protect their privacy.

Copyright 2008  Audu Real Estate  All Rights Reserved

The title of the Most Important Job I have ever had is: MOM.  It's a job that has delivered the most extraordinary moments in my life as well as some of the most challenging.  Many of you know that this year I have started making contributions to Mothers Fighting For Others, a blog which highlightes situations affecting disadvantaged children in Africa & Asia.  We also explores new and creative ways to Fight for the Rights of Others who do not always have a voice or presence to speak for themselves.  Here's a pre-view to my latest blog below. 

I admit it...I have a tendency to be impatient. Although, I love the melody of John Mayers song, "Waiting for the World to Change," there is always something inside me that bucks against the message.

Deep down inside, I distrust the notion that the world will simply change while we wait or because we hope it will. My gut informs me that change occurs because we make it happen!

A couple of weeks ago, I was watching a 60 Minutes piece about the Gulf State, Dubai. Steve Kroft interviewed the nation's leader and traveled with him to a number of different areas of the country. During the broadcast, Kroft and the Sheik are watching a camel race. What intrigued me was that the jockeys were not human beings...they were robots!

Well, as Paul Harvey would famously say..."And now for the rest of the story." Apparently, the use of robotic jockeys for camels is a fairly new development in the sport of camel racing. In fact, these robotic jockeys are so highly developed that they are controlled by their handlers from jeeps racing around the track shouting instructions into special hand held devices. They also wear a special perfume which makes the camels think they're being cajoled by a real human being and not a machine. Amazing.

It's even more extraordinary when you consider that a mere 2-3 years ago, the jockeys were little human beings... children. Many of whom had been sold or abandoned to child slavery. Click to continue reading...

Picture of child jockey was obtained from Wikipedia and provided courtesy of Creative Commons License from Ansar Burney Organization.

I'll always remember my first one.  As a young girl in the mid-seventies, a good family friend brought a large box-like structure to our home and told us it was a new camera.  One that could take a picture and we would be able to see it within minutes.  We all stared at the thing in awe. 

No one in my family owned a personal camera.  When special moments needed to be recorded, we called a photographer.  It was always uncomfortable. And after the posing and primping, you were lucky to get a picture back to you in a couple of weeks.

Our family friend offered to take a picture.  Just like that!  No special primping, no awkward pose...just a smile please & a flash and a few minutes later, just like he'd promise, we could see ourselves.  As we were moments ago.  Wow!  We were thrilled and awed.  Polaroid camera would become for me and many of our friends our first foray into the era of new imaging technologies.

Today, my Active Rain friend Colleen Kulikowskisent me a Digg on an article she thought might be of interest to me.  It was about the virtual demise of Polaroid.  The story, filed earlier this month in the New York Times by the Associated Press chronicles the demise of what was once an industry giant.  This month, Polaroid is dropping the technology that gave it worldwide fame and is whittling down it's work force which topped 21,000 world wide just 30 years ago to a minimalist 150.  In fact, Polaroid stopped making instant cameras almost two years ago leaving the camera to languish in the relics of history.

The president of the company, Tom Beaudoin is quoted as saying:

''We're trying to reinvent Polaroid so it lives on for the next 30 to 40 years,'' Tom Beaudoin, Polaroid's president, chief operating officer and chief financial officer, said in a phone interview Friday, after the company's plans were reported in The Boston Globe.

The article goes on to note:

Polaroid failed to embrace the digital technology that has transformed photography, instead sticking to its belief that many photographers who didn't want to wait to get pictures developed would hold onto their old Polaroid cameras.

Three things struck me as particularly poignant:

Polaroid executives failed to discern the Future of their industry.  They failed to embrace digital technology even though they were the industry leaders.

Polaroid still holds Market Share in the mind of loyal enthusiasts who will go to great lengths to procure and continue to use a Polaroid for sheer nostalgia's sake

Polaroid is struggling to emerge from a near-death experience by touting a new mini-sized printer of photographs.

Today, the real estate industry stands at  similar crossroads.

We are in danger of failing to discern the future of our industry and failing to embrace the technology which will define it in the next decade even though we are currently the industry leaders.  We are in danger of failing to comprehend how drastically the nature of SEARCH will re-define the real estate process in it's entirety. 

Polaroid didn't see it coming.  The instant picture is no match for a digital image which can be deleted, re-imaged, shared, colorized, stored AND printed at the whim of the user with minimal cost.

Today, most real estate continues to be sold by real estate agents.  In fact, over 80% of sales are transactions facilitated by real estate professionals.  But last year, according to the National Association of Realtors, approximately 400,000 Members did not Sell even one home.  That number is expected to increase this year.  The point is this:  there will always be a place for real estate agents who are effective and efficient.  But, we risk loosing our market dominance if we don't adapt in a way that meets the needs and desires of today's consumers who are looking for:

*Convenience & Easy Access to ALL real estate related information

*Reasonable Costs for Value Added Services

*Verifiable Expertise

*Enhanced Options & Opportunities aided by the use of new technologies

Will Polaroid be able to regain it's glory days by touting the development of a convenient mini-sized printer? Maybe.  But, I would suggest that the odds of this happening are infinitesimally small.  Why?  Because this is not their unique service advantage.  There are many in the printing world who have been doing this far longer and have the benefits of "mind share ownership" in the consumer's mind in the arena of printing.  When I think of printing, I think of Hewlett Packard...not Polaroid. 

Is the real estate industry in danger of making this type of error?.  Absolutely.  If we loose our Core Mission even though we have a significant margin to our advantage, we may also find that within a decade, real estate agents who survive in semblance close to what we understand the term to mean today, will be struggling to do everything BUT actually helping members of the general public to buy and sell homes.  Just a thought...

Copyright 2008  Audu Real Estate  All Rights Reserved

Photo image of young photographer is courtesy of muha's photostreamon flickr.com

Photo image of crossroad is courtesy of bradleyolin's photostreamon flickr.com

There's a reason why we have two ears and just one mouth.

A single mouth can easily over-power two perfectly good ears.

It's always easier to talk than to listen.

To listen we must be quiet...with our mouth

And dull the roar from within the heart.

Listening is hard work...

Voices in the mind shout and jostle for attention.

Listening means that I accept that what you are saying right now is more important than...

What I need to say right now,

What I need to say next and...

What I really wish I could say.

Listening helps me to see with my understanding what I cannot observe with my eyes.

When I listen...I don't interrupt

When I listen...I seek to understand

When I listen...I relinquish the right to judge

When I listen...I feel what you say even if you can't express it.

When I listen....I hear

When I listen...I offer you my unique gift

Copyright 2008  Audu Real Estate All Rights Reserved

Click here to Read more entries in the "What it Means" series...

We're having the strangest of winters this year in Grand Rapids, MI.  Here's what my yard looked like just a month ago.  I wrote the post below because it was so strange to see green moss growing in the middle of what was supposed to be the dead of winter.

January 16, 2008

Here's a picture of what it looks like in Grand Rapids, Michigan when winter decides to take a hiatus and there's 60 degree weather in the middle of January.

It seems as though the trees are confused.  Why is there green moss up the tree trunks?  Some plants are also wondering what they're supposed to do. 

When it's this warm, if you were a plant...you'd probably be tempted to bud early too.  Meteorologist tell us this is past week, we had one of the warmest winter days on record for the past 20 years.  Global Warming??

Fast Forward just under 30 days...

February 12, 2008

We have had two weeks of what seem like non-stop snow storms.  And I don't use the term storms lightly. We've heard thunder & lightening during heavy storms.  Here's a picture and some comments on the winter wonderland in Grand Rapids, Michigan today.

I love to look at the cool white stuff while I'm snuggled up within the warmth of my own home.  But driving through it...well, that's another matter entirely. 

Left for a meeting this afternoon & there was NO SNOW.  Two plus hours later...it's a totally different story!

I had a couple of inches on the hood of my car and the roads had been transformed into white tarmac with black track marks where the cars had travelled.  Visibility was about 100 yards in some spots.

Traffic on the expressway was FAST when speeds reached 45 mph!  Getting off the highway, it slowed down to between 15-20 mph.  This is one of the those nights where it's wise to stay put...unless you can't resist the lure of the ski trail & snowmobile machine. 

Stay safe out there.

Recently, I sat down for lunch with an engaging, young mortgage professional, Hillary Kooy, to talk about her involvement with the Garfield Park Development Corporation. The Garfield Park Neighborhood in Grand Rapids, Michigan is  roughly bounded by Cottage Grove Street to the north, 28^th Street to the south, Division and Century Streets to the west, and Eastern Avenue to the east.

Garfield Park is an eclectic and diversified neighborhood which is anchored by the historic neighborhood park by the same name.  It's a neighborhood which also supports a number of ethnic and minority communities and businesses.  The Garfield Neighborhood Association is one of Grand Rapids best known and established community organizations. In 1992, concerned residents within the Garfield Park neighborhood formed an adjunct which is known as the Garfield Development Corporation.

The Garfield Development Corporation was founded to open up home ownership to people who had been shut out of the process for a variety of reasons. Through the Homebuyer Purchase & Renovate Program (HPR) a grant funded by the State of Michigan, the Garfield Development Corporation has been able to help homeowners with limited funds purchase affordable homes. 

As Hillary explained the opportunities to me, I was astounded!  The HPR Program enables Buyers to qualify for grants up to $10,000for Down Payment Assistance to purchase a home of their choice as long as the home falls within the prescribed boundaries.

But wait... it gets better!  If a home has lead based paint and requires lead based paint abatement, the borrower can get an additional $10,000 grant to execute this renovation.  And that's not all.  Based on a home inspection and approval,  AND provided the funding is available, home buyers can qualify for up to $20,000 for energy efficient home improvements that can include items such as: a new roof, furnace, replacement windows or new appliances.

The Best Part of the program is that the Grant is forgiven after 50 years. While it's true that most people will not be staying in a home for that long, a unique aspect of the program enables qualified buyers to take advantage of these resources and be liable for only the portion of the improvements which make up the current market value as verified by a current appraisal.

For a buyer contemplating buying a home in what is now referred to as a "Declining Market" this is heaven sent relief!  Here's how it works. (1) You go out & find your home within the boundaries served by the program (2) You buy a home with Assistance from the Down-payment Assistance Fund. (2) It needs some repairs which you qualify for & get done by a licensed approved contractor.  (3) Then...another appraisal is done to determine current value WITH the repairs. The final loan you are assessed on a Silent Second Mortgage is only the Difference between what you Bought the home for and what the home is now worth on the Current Market based on the new appraisal!

It's an extraordinary opportunity!  If you're thinking about purchasing or selling your home in the Grand Rapids area and would like to explore this further, this is a program that merits your attention. Feel free to contact us if you have any questions.

*This home is an example of the quality of construction and type of home which buyers can purchase.  Or home buyers can purchase a home  & fix it up.  This year, Garfield Development Corporation hopes to build at least 2 brand new homes and offer them for Sale.  You can choose to work with your favorite loan officer & real estate agent & buy one of these homes. They will work with any qualified real estate agent who brings a qualified client.  This is a terrific Win Win for all concerned.  Make sure to check this out!

Copyright 2008 Audu Real Estate All Rights Reserved

You don't know you've lost Peace until you can't find it.  Sometimes you don't know you've lost Peace because you've never had it. 

Peace is not an absence of challenge or trial.  It is not a promise or guarantee of the avoidance of hardship.  Rather it is the stillness which draws from a deep well spring the knowledge that all that really matters...is well.

Peace is not about being popular or well-liked.  In fact maintaining it will sometimes require doing things which are deemed disagreeable and opposed.  However, Peace cannot be divorced from Truth and the Integrity to live a life which is free of duplicity.

Peace does not guarantee that you will never have aught with your fellow man.  However, it will provide the pre-requisite humility and wisdom to understand how to surrender in love knowing that the personal battles we fight are ultimately temporary in nature. Peace knows that real victory lies in understanding the profound and empowering universal truth of the power of Love. That is eternal.

Peace means you can look your enemy in the eye without malice in your heart because you know that the lessons he was sent to teach could never have been learned without the  pain of the gift of his strike.  Peace allows you to laugh again...It's not about forgetting about the wound, but being confident that the healing of the scar has made you stronger than you were before.

Peace is being able to leave it alone...lay it down.  It is the strength to walk away and be free from the temptation to look back. Peace is a good night's sleep & a refreshing wake-up in the morning.

Copyright 2008 Audu Real Estate All Rights Reserved