About Grand Rapids' Grandville

I just returned from a meeting with sellers who have a home to sell that they no longer occupy. They have purchased another home and have physically and mentally moved on. Except for this one small detail...they have a home to sell!

The odds are daunting. In their price range there are 22 homes for sale in the surrounding area, only 2 have sold in the past 12 months. Of all of the units sold throughout our Multiple Listing Service (MLS) in the Grand Rapids area, only 2% of the properties sold were in this same price range. That means at the current level of activity we have a 10 year supply!

Our discussion was frank and to-the-point. They have been under contract with a company who charged them a flat fee to have the property on the MLS but did no marketing for them. In fact they agreed to a $65,000 price reduction and it never was reported to the MLS! How's that for getting what you pay for? Six months later they still own their home along with all of the ongoing maintenance costs, taxes, utility bills etc. In today's market it is clear that one needs every advantage possible to expose a property to as many potential buyers as possible. Marketing and positioning need to be aggressive! This is no time for thin skin....it's time to roll up sleeves and get things in order.

The property has lots of wall paper which needs to be removed and walls repainted. While it may have been perfect for the sellers, most buyers can't see past the pattern and imagine their own décor. I suggested the use of a property stager so that the house will show at its greatest advantage and buyers will feel like this is a "home". Remember, most buyers buy what "feels good". It's unfortunate that these things weren't suggested months ago.

Sometimes sellers will push back and tell me that their home is perfect and doesn't need to be updated, neutralized or redecorated. My suggestion then is to suggest they visit the competition which may be staged, redecorated, freshly painted or even brand new. With so many choices buyers become very discriminating and reject homes that don't hook them right when they come in the door. Little details can make a big difference.

I may not always tell you what you want to know but I will always tell you what you need to know! After all, isn't that what you really want?

It's a gorgeous day here in West Michigan and we are in the midst of the fall season.

I think it's my favorite season of the year. The colors of fall are the color palette of my home and I find them warm and restful....greens, browns, purples, oranges, reds, yellows. The mixture is breathtaking on a bright sunny day against the blue sky.

There's something about autumn that make people stop and take in the wonder of the world around them. The air is different...crisp and fresh and frosty mornings sometimes take your breath away. The sky is bluer, the air clearer and the grass greener.

Last week I drove to Traverse City, Michigan and enjoyed the views on my way. Black cows juxtaposed against a golden field surrounded by flaming trees casting long fingered shadows as the sun dropped in the west. Deer grazing for corn left behind by farmers weeks ago. The evergreens creating a backdrop for the bright sentries lined against them in the form of maples, oaks, sumac, etc.

A walk along the shores of Lake Michigan finds quiet solitude during these days when the summer visitors have returned to normal schedules of jobs and school. The water is green gray against the intense blue of sky and the sand is crunchy and firm beneath my feet. Water and sand smoothed chunks of wood are plentiful and here and there a stone smoothed to a perfect oval awaits discovery.

Night comes earlier in these weeks but my drive home reveals a perfect maple tree reflecting the dropping sun and casting long shadows down the street. In a day or two its leaves will drop and only a skeleton will remain to wait for spring's new leaves. In the meantime I need to take time to enjoy the Creator's brushstrokes while they last.

I am reminded that all of life is like that. I get so busy with the rushing and the routines that I often forget the journey is not the destination....it's the experiences all along the way! Some of those are breathtaking and very short and I need to make sure to enjoy those moments as they come along.

I just returned from visiting my oldest daughter and her husband in California. Our first grandchild arrived on September 27th so our new grandson, Whitaker, was the star attraction of our visit!! I've heard that grandparenting is the best but words hardly describe the feeling of holding a grandchild for the first time!

While there the headlines were all about the financial crisis and the ups and downs of the stock market. The saying goes that "if it bleeds, it leads" and the media certainly never gives us a breather from day to day.

I remember when my daughter and husband planned their move to California last April and considered buying a home there. Was it wise to do so now or was it better to wait for the "bottom", whatever that was? They decided to take advantage of the downturn in the market and were able to purchase what they wanted for much less than if they had purchased a couple of years earlier. I tried to remind them that no one would know where the bottom of the market was; by the time anyone recognized the bottom it would be too late. Reminding them that you can't buy where the market "was" only where the market "is", I suggested they could enjoy their new house now and make it their home.

As I watched them in the last week I was reminded that a personal residence is more than a house, an investment or tax deduction. It is the "home" that we begin to personalize almost as soon as the first box is opened. It includes the nursery that is lovingly and carefully decorated to which we will bring our newborn son. It's a yard we make ours and and is the place our dogs will play and roll and where we will entertain our new friends and neighbors. It is the place we return to each night after a long day of work. It is the place where we make the many memories that will last a lifetime.

I always counsel the buyers with whom I work that if they can't see themselves in a house for a least 4-5 years than it probably isn't right for them. But I also remind them that one can buy a house....never can we BUY a home....we make that for ourselves!

Everyone I talk with in the last few days has been keeping close track of the financial news and the hourly (even momentary) tweaks and nuances to the Federal Response to the financial crisis of the last several weeks. The landscape sometimes seems pretty bleak.

We worry as REALTORS about the impact on the housing market, our clients, communities and our own livelihoods, if we're really honest! Unfortunately I still have several conversations each week with those who are in trouble financially with regard to their current mortgage and may be sinking further by the day.

In all of the turmoil of the past weeks many have lost sight of the potential relief that if available for home owners in the form of the new housing bill (HR 3221, Section 1403) which was signed into effect on July 30, 2008. This bill requires mortgage servicers to modify loans for homeowners if they meet the requirements which are as follows:

1. They are already or will soon be in a defult situation on their mortgage
2. They are living in the property and it is their personal residence
3. A workout or loan modification would represent a larger return to the lender than would a foreclosure

Since most borrowers make their monthly payments directly to servicing companies it is critical for consumers to understand that the law requires these servicers to act in the best interest of the investors who actually own the mortgage. That means modifying the loan if the borrower can afford the modification terms.

Often borrowers who are in trouble tell me of the maze of frustration they experience when they try to contact their lender to attempt to work something out. It is critical to keep the following in mind when in this situation:

1. Make sure you are dealing with the lender's loss mitigation or work out department!
2. You will need to write a "hardship" letter detailing why you are in default or soon will be. Details like job loss, medical problems, divorce/separation, overextended credit, adjustable interest rates; anything that makes it impossible for you to keep making your payments. You must demonstrate that you are or soon will be in default in order for the law to require the lender to work with you.
3. The lender will require you to complete a financial statement including recent pay stubs, tax returns, household expenses vs. income, debt obligations, etc. All of this will demonstrate your ability to pay on a modified loan arrangement.
4. You will need to provide your lender with a recent appraisal or have a REALTOR prepare a comparative market analysis of your home showing recent sales and current homes for sale in your area. You will need to demonstrate to the lender that, by modifying the loan, the lender stands to lose less money than if they were to foreclose on the property.

A sample letter that can be used during your negotiations is:

http://www.cmpsinstitute.org/pdf/SampleLoanModificationRequest.pdf

Should your lender refuse to work with you as per the terms of the law it may be appropriate to contact an attorney or legal assistance organization to ascertain your rights and the next steps to follow.

It is in the best interest of everyone if borrowers are given the opportunity to modify their mortgage terms and can remain in their home. We all need to spread the word!

Once again there is talk of football and all sorts of opinions about which team will be most competitive which signals that school is about to begin and summer is nearing its end! Those of you who know me well know that I love football...high school, college or professional. That being said it is always hard to believe another summer has flown by. With time seeming to fly by, I find it more and more important to remember to focus on what is important in my life and to stress less about what is not.

I recently came across a quote from Warren Wiersbe that I found very insightful and valuable enough to share with you.

"At some point in life, each one of us must decide what is his highest joy, for the thing that delights us directs us. Generally speaking, a child finds his delight in what he has, a youth in what he does, and an adult in what he is. The first lives for possessions, the second for the experience, and the third for character. If life is to be rich and meaningful, then our joys must be the highest possible."

One of the books I read this summer was The Best Question Ever by Andy Stanley. The best question ever is "What is the wise thing for me to do?" When a decision is necessary, that question helps me. So my decisions are best made when I consider what brings me the highest joy and what is the wise thing to do. My ultimate goal then becomes making my priorities less about possessions and "doing" and more about the person I want to be.

I hope that you find yourself spending time on things that bring you the highest joy and that you'll find time to consider what those things are in these waning days of summer.