Inspired Real Estate For Today

Today, the sun came out to play!  Lately, it's been hiding away. In it's place, the clouds have had full sway. Drenching us with showers and occassionally startling me with a loud burst of thunder illuminated by brilliant crackles of lightning.

And, it is at precisely within this dark backdrop that my attention is captured by two flowering trees in the yard; in particular a magnolia tree plump with juicy pink blossoms.  As if to say, 'I'm not worried about a little drama, it's time to strut my stuff!'

Sometimes strong storms visit West Michigan during the transition between winter and spring when the earth begins to resist the blanket of snow which has buried it for several months. The visitation of these strong winds has been known to topple even electrical poles as the rain melts what is left of the lingering snow.

At first, the grass barely yawns.  It is haggard and brown, a condition reflected in trees with lifeless branches.  But then something odd begins to appear.  As the first storms drench the earth, the hardiest of plants begin to emerge...spring flowers like the daffodils.  Have you noticed how incredibly bright these hardy souls are?

We can learn a lot from the first signs of spring.  Lessons which are increasingly valuable in the times in which we live.  One lesson which stands out to me is that storms are inevitable.  And they are necessary.  When the rain splatters against a hardened earth, the softening begins to make way for the shoots buried just underground.  The strokes of lightning like a paint brush, transforms the dull grey to a brilliant green lush canvas.

I see my magnolia.  Her arms reach towards the sky, confident that the sun will appear again. She is unafraid of the harshness of the circumstance.  Instead, she chooses to launch out with confidence, her branches revealing a beauty which transcends the atmosphere raging around her.  And with time, the sun does re-emerge.  But, she doesn't skip a beat. Now her blossoms open in wide embrace as if to say, "I knew you'd be back!"

Copyright 2009  Audu Real Estate  All Rights Reserved

This past week, I attended a Foreclosure seminar which was part of the Fair Housing annual educational and awards presentation held in Grand Rapids, MI.  The event drew a significant number of individuals representing different areas of government, business and the non-profit sector.  

The foreclosure session was led by Kym Spring, the coordinator for Foreclosure Response, and featured several presenters as well as discussion and questions from the audience.  I learned a lot about the profound impact that foreclosures are having in the West Michigan area including the unsettling statistic that 10% of the housing stock in our area is in some part of the foreclosure process.  In Kent County, we're loosing about 10 homes a day, 7 days a week!

One of the most arresting comments came from a member of the audience. (which included several local experts)  A gentleman associated with Home Repair services, an organization dedicated to helping home owners STAY in their homes shared this:

'While much is being done and invested to address the crisis through programs to help the banks and re-build communities, we should remember that it costs approximately $1,000 to help a family STAY in their home.  And organizations which do this are struggling with their budgets.'

That comment for me highlighted the challenge of dealing with this crisis.  Sometimes, complexity gets in the way of common sense.  While there is not going to be one single silver bullet to end this crisis, we risk loosing sight of obvious steps which can be taken to alleviate human suffering and stabilize hard hit communities.

After all, if our neighbors loose their homes, we're all going to suffer.  This is NOT an individual problem...it's a collective problem!

At a time when the numbers being tossed around to deal with this crisis are so staggering that we need graphs and pictures to help folks understand the size of the mountain of dollars, it was really refreshing and eye opening to hear about practical solutions which would cost far less and can be implemented at the local level.  

If you're in the West Michigan area and need help because of the threat of Foreclosure, here are some reputable organizations which can be of assistance.

Legal Aid of West Michigan: 

If you're a renter, being unfairly evicted due to foreclosure, call:  616-774-0672

Foreclosure Response:

Homeowners, renters and neighborhood communities can access services, self-help tools and action steps to help prevent foreclosures.  Call 616-401-0680 or e-mail ForeclosureResponse@gmail.com

Home Repair Services:

These housing specialists provide FREE assistance to help homeowners work out positive outcomes with their lender.  They also serve as a referral to other services which can be of assistance to people facing this challenge.  Call 616-241-2601

Copyright 2009  Audu Real Estate  All Rights Reserved

If the beginning of the year 2009 was somewhat tepid for real estate sales in Grand Rapids, Michigan…things changed in March.  March roared in and out with numbers which had many in the real estate community chattering with delight.

Activity increased with home buyers sending sales into an upward spiral which eclipsed the same period of time in March of 2008 by 19.46%!  For agents on the ground working with home buyers, this translated into multiple offers or Sold signs on many desirable properties.

In addition, although foreclosures and short sales continued to depress pricing, the overall number of homes for sale was down by 12.8% (10,301 active listings in 2008 vs 8,982 in 2009) and the inventory racks (also known as the absorption rate) decreased from 12.69 months of housing inventory to 9.26 months.

For home sellers, the bottom line view still hurts to look at.  In March of 2008, the average single family home was $120,000, this year it’s about $100,000…a whopping 20% drop!  Ouch!

So what’s the best course of action if you’re in the real estate market of 2009.  Well, it depends on which side of the market you’re putting a stake in the ground for.

Buyers…

If you’re buying a home, the combination of record low prices, great interest rates, good inventory and the tax credit make a very strong case taking a good look at your options, doing your research and acting responsibly and decisively.  Nothing lasts forever…this perfect storm won’t either.

Sellers…

If you’re selling your home, step back and take a birds eye view of your surroundings.  You might be surprised by how much competition is surrounding your dwelling.  Study the numbers intently.  This starts by ordering an appraisal or commissioning a well prepared Comparative Market Analysis by a seasoned real estate professional.

Be realistic; you’re probably not going to make a ‘killing’ in the profit department, but if you play your cards right, you don’t have to get taken to the cleaners either.  Homes which are priced right are selling.  It’s just that the term ‘priced right’ is a moving target.

If you’d like a more detailed analysis of your specific neighborhood, contact me at info@auduhomes.com.  It’s important to note that the stats for every neighborhood in Grand Rapids, MI and the surrounding areas are unique.  This is not about a one size fits all approach.

Copyright 2009  Audu Real Estate  All Rights Reserved

While the number of homes being Sold under 'special conditions' a term which is a euphemism for distress sales in Grand Rapids, MI trended slightly downward in March, home owners will still be dealing with the impact of so many homes in 'crisis' on the market this spring.

The spring market is traditionally the period for the most activity in the real estate industry.  In Grand Rapids, MI; a gorgeous day like the one we enjoyed today, is just the tonic needed to spur many potential home buyers into the buying mode.

With the tax credit available to buyers who purchase during this year, there is some expectation and hope that perhaps there is a leveling off on the horizon for the precipitous drop that has driven prices down drastically over the last couple of years.

But, the fact remains, many home sellers will still find that in order to sell their homes, it will be necessary to complete a short sale, as the amount owed on the mortgage will not be paid after the costs of the sale.  If you find yourself in this situation, there are some steps you can take to ensure that you are realistic in your pricing when you place your home on the market.

What is a Short Sale?

Short Sales are an option to consider if your home will probably NOT sell for the Amount You OWE on the Loan after you have paid all the costs associated with selling your home. 

A Short Sale is a negotiated Solution with the owners of your note (s) which requires patience and persistence.  It's not a simple negotiation.  It will require your real estate agent negotiating with a potential buyer, jumping through the hurdles to get an acceptable offer to all parties AND THEN Negotiating with the bank & perhaps their subsidiaries including the Investor who may suddenly seem to appear out of "nowhere" with a monetary interest in your property. 

The Investor is your Ultimate Money Man & makes the final decision in most cases. You  and/or your agent may or may not deal with him/her directly in the process but be assured that their influence is substantial. 

While it is true that the bank does not really want your home back...they are bankers,  not real estate agents...they DO want as much money as they can possibly get for the loan.  After all...you did agree to pay them the amount you signed for. 

Now, in situations similar to what many residents of the State of Michigan have faced recently, there are a number of neighborhoods for which the Value of the homes have dropped considerably.  First of all: KNOW YOUR CURRENT VALUE.

How Can I Determine the Value of my Home? 

It is wise to invest in an appraisal or accurately prepared Comparative Market Analysis. If you would like a referral to an honest, competent appraiser, you can contact our office.  Our team at Audu Real Estate can also provide a thoroughly researched Comparative Market Analysis. 

This is NOT the time for games.  In-fact, if you choose to utilize a Comparative Market Analysis, ask the Realtor ® to create the analysis using ONLY Sold Comparables and Expireds.  This will give you the most realistic picture of what the market in your area is currently doing.  The fact is that many homes currently on the market will NOT sell, so why use a Non Starter to determine how to price your home.  Focus on the Success Stories...the homes that have SOLD to increase your chances of Success!

Having arrived at a price that will SELL your home, Reduce that amount by 1-5%! Then...Put it on the market.  Jump into the game like you really mean it.  Time is not your friend in this process.  As more homes go into Foreclosure, the Value of every home may continue to trend downwards!

Many times homeowners think that because they are not going to be getting much out of their home, they are giving the house away and therefore don't really put effort into presenting  the home properly. There is also a temptation to be uncooperative about showing your home because you are resentful about having to sell it. This is a big Mistake.  We will discuss WHY trying to get the most out of your home even if you won't be taking money out of the deal is to your best advantage in a future blog post.

Copyright 2009  Audu Real Estate All Rights Reserved

Some time ago, two friends invited me to lunch at their home.  I had gotten to know them through a class that we were involved in. From the moment I stepped into the home, I knew that this would be an unforgettable experience.  It was a celebration of friendship in which they had lovingly baked and cooked a real feast.  It was such a delight!

I was touched by the care and attention they had taken to do something special for me.  It still means a lot even as I remember it so many years later.  I was at their table...but they had taken pains to make the experience something they knew I would love and appreciate.  Pure pampering for the soul..  I left that luncheon feeling nourished in spirit and body.

Now what if I had sat at the table and not expressed appreciation for the care and attention they had obviously put into the meal?  That would have been rude and mean-spirited on my part.  Not only would I have ruined the pleasure of the meal for them, I would have ruined it for myself as well.  That's the nature of human interaction...we tend to get out of relationships what we put into them.

In life, we're often guests at someone else's table.  And it's not always set the way we would do things if the table was at our house. It may be a boss who has a different set of expectations than you do or a friend who looks at a situation from a unique perspective.  Regardless...it's not our way.

But so what?  Why does it matter?  Why not simply accept the fact that a different way can be embraced and enjoyed simply for what it is. It's really not about if we're at my table...or yours; it's about being mature enough to appreciate and cherish what others bring as their unique gift and accepting it for what it is...and is not.  Period. 

picture courtesy of Rene Erhardts photostream on Flickr Creative Commons license.

Copyright 2009  Audu Real Estate  All Rights Reserved

 You are welcome to attend Lola Audu's course on Blogging Ethics & Social Media for Business Professionals!  Lola is a Michigan Continuing Instructor and has attended the Bill Gove Training Institute for Keynote Speakers.

This will be a great learning experience for those who want to enhance their business model through the use of blogging & social technology. Social technology is here to stay and now is the time to get ahead of the curve.  

Lola will demonstrate how social media can play a significant role in growing your business by taking it to the next highest level online. Please see the instructions below on how to register for this awesome class!

You can resigister by going to www.auduhomes.com and click on the "Education" link. This will take you to your registration options. You can also register online or print out a download-able form and fax it over to AUDU Real Estate @ 616.791.0535. First come first serve as spaces are limited.  *Please NOTE:  The SAME 2 classes are offered on 2 different days!  April 16th is almost Full.  Reservations still available for April 17th, 2009.

Please confirm your registration by 5pm on Tuesday, April 14^th

Date, Time, & Place:

Friday, April 17th 2009

9am-12:45pm

Country Inn & Suites~East

3251 Deposit DR NE 

Grand Rapids, MI 49546

 Payment:

The cost is $50 for 2 courses. $65 for walk-in. You can pay in advance via credit card or check. You can also pay by cash,credit, or check at the door, however you must still confirm your registration by submitting your registration form by the April 14^th deadline.

Important Note: It is recommended to bring a laptop if you have one. Wireless access will be provided. If you do not have a laptop, you may follow along with the instructor.

Blogging Ethics for Real Estate Professionals ~ Continuing Education ~ 2 Credits ~ K1062  Sponsor Code K355

Social Media for Real Estate Professionals ~ Workshop ~ Not Continuing Ed

Please email Takara Taylor at Takara@grar.com  for questions or concerns or call 616.541.2312.

Related Post:

Why Real Estate Blogging is Like A Peanut Butter Sandwich...

************************************************************************************************

Snacks & Beverages will be provided! Course Agenda is listed here! This workshop is not limited to Real Estate Professionals. This course is considered to be a viable resource for many other professions.