Just over three years ago, a select group of brokers and agents in Grand Rapids, Michigan got together for series of meetings. They had been tasked by the Grand Rapids Association Board of Directors to study and make recommendations about a problem which seemed to be mushrooming across the local community. Foreclosure and Short Sales had jumped from being barely a bleep in the statistics to trending into the low double digits.
Although, few of us in the room could have envisioned where this assignment would take us, I vividly recall gasping when someone suggested that we might just be seeing the tip of the iceberg and that delinquency rates might be over 60% in the future.
Over the past 12 months as foreclosure and short sale rates in our local market have jumped to encompass up to 70% of the reported sales, one thing has become patently clear...foreclosures are impacting EVERY price range and some analyst predict that the higher end homes may comprise more of the foreclosure/short sale market in the next wave.
The Luxury Challenge...
High end homes face a unique set of challenges in this market. With the U.S. economy in a financial slow down, the rate of job loss has been very severe for many with managerial and professional skills.
The biggest challenge faced by homeowners in the luxury market is the inability of homeowners to clear their debt obligations through the sale of their home.
Greg Carlson, the 2009 President of the Grand Rapids Association or Realtors recently commented on the fact that over half the membership on our board had not made a single sale in 2009 (we're currently midway through the year) and only 200 agents had sold more than ten homes!
This underscores the real difficulty even professionals face in successfully selling a home today as banks deal with huge inventories of foreclosures and patience runs thin for home buyers skittish about taking risks.
Although recent incentives for first time home buyers have helped to bolster the lower priced homes, these incentives have not benefited sellers who need to sell luxury homes. In addition, many move-up buyers may not be able to sell their homes or may be struggling with financial obligations due to the credit and job crisis.
Soaring Delinquencies...
As delinquencies soar, a recent Business Week(June 15, 2009) article quotes a May 28 report from the Mortgage Banker's Association which highlights the threat "
For the first time since the rapid growth of subprime lending, prime fixed-rate loans now represent the largest share of new foreclosures...Nearly 13% of loans were delinquent or in foreclosure, the most since the bakers started keeping tabs in 1972." David Crowe, chief economist of the National Association of Homebuilders does not see this peak cresting until 2011.
The good news is that homes in Grand Rapids, MI and other areas across the country are still selling and this includes some high end homes. Selling a high end home in this market will require a good handle on the fundamentals of pricing strategy and also an appreciation for some of the emerging new avenues for marketing in a global arena.
Click here to continue reading part 2...
Copyright 2009 Audu Real Estate All Rights Reserved
Click here to read more articles about Short Sales...
We're always available to answer your questions and provide informed counsel and recommendations.
There are a number of metrics which one can use to get a handle on the current housing market in Grand Rapids, Michigan. However, the one which captures my attention as we head into what is traditionally the busiest season in real estate is the Spring Parade of Homes. Here's what I wrote about the tour last year...
It's a spring time ritual in Grand Rapids, Mi. For residents like myself and many others who love to peek into gorgeous homes and pick up the latest tips for home decor and furnishings, the Spring Parade of Homes Tour is an event which is highly anticipated.
However, this year, the Parade of Homes will feature a tour with significantly fewer offerings than in recent years. In 2006, there were 200 homes featured in the Parade of Homes, last year (2007) the number was 133. This year, 83 homes will make their debuts in the Parade...far fewer entries than just 24 months ago. (click here to continue reading)
This year, the Parade of homes will feature less than 1/2 of the homes entered in the 2008 year. The 2009 Parade debuts with 42 homes as it marks 50 years. A search for the nucleus of this story traces back to the number of building permits issued in Kent County in 2009. A number which has been declining for the past several consecutive months to just 25 for the entire county in March of 2009; down from 61 in the same month of the previous year 2008 according to data obtained from the Grand Rapids Association of Realtors®.
For the first quarter of the year, permits are being issued at about 1/2 the rate of last year 2008...which was already a less than stellar year for new home construction.
But, West Michigan has always been a resilient community which prizes innovation and creativity. This year, the Parade of Homes will feature six Green Homes, a Brand New offering. Not only will the public be able to view quality built, affordable, environmentally sustainable home construction, there will be classes available for those who would like to learn more.
Last year, I visited a green built home in my neighborhood. I thoroughly enjoyed talking with the builder and learned a lot about how smart investments can save a future homeowner money and increase the enjoyment and comfort of the residence. If you'd like to tour a Parade home, look for the signs which mark each home or visit this site for additional tour information including scheduling for the Green Homes which are open on Thursdays.
Visit www.auduhomes.com to view NEW home construction in all price ranges!
Copyright 2009 Audu Real Estate All Rights Reserved
Recently a call came into the office from a prospective buyer. After talking with her briefly, I asked her if she was being assisted by an agent who could get her real time updates of newly listed homes when they were listed.
She seemed surprised that this was possible. But it wasn't until she began to share her online experience with me that I became startled. Apparently, she had clicked on a link on a website to get information about a home listing and didn't think anything of it...until she was presented with a $15 charge on her phone bill the next month. When she contacted the phone company, they informed her that the click had cost her $15!
Has anyone else run into this?
I did let her know that you don't have to pay ANYTHING to get updated information about homes in Grand Rapids, MI. In fact, the Grand Rapids Association of Realtors is now beta testing a new site which will allow prospective homebuyers to customize and SAVE their searches. They can also choose to associate the search with the real estate agent of their choice if they'd like.
In addition, the association is asking consumers for feedback so they can enhance what our guests experience while they are online. Check it out for FREE. You don't have to pay for the most comprehensive, real estate listing information available in Grand Rapids, MI straight from the professionals who serve in the real estate industry everyday.
If you're searching for an agent to serve your local real estate needs, visit www.auduhomes.com. You can create your own private search by clicking on the Property Search link and also access tons of information about the local area.
Copyright 2009 Audu Real Estate All Rights Reserved
Apart from my signs, one of the fist items that I purchased for my real estate tool kit more than 14 years ago was a brochure box.
Remember when color brochures were the latest in creative marketing? Brochure boxes hung around many signs, sometimes along side the 'talking house', a radio broadcasting network which allowed listeners who tuned in to listen to the agent describe the experience inside the home they were parked outside of.
Sometimes, brochure boxes were jerry rigged to ensure that they didn't fall off. Others were battered and cracked due to the rigors of banging against a sign and being tossed around by wind and rain or worse...
This is what we dealt with back then...
1. Reams of sheets of paper and cartridges of ink to make fliers
2. Lots of wasted fliers which were grabbed in bulk by sometimes just one passer-by
3. Countless wadded up shreds of paper drenched by rain
4. A less than stellar presentation of a home's potential
You get the picture. Brochure boxes that needed to be continually replenished. A process which wasted time, gas, energy and of course paper. Is this the best use of our natural resources?
Over the past couple of years, we've been experimenting with a Green approach to real estate signage. One which is facilitated by our Internet marketing strategy. As a result of consistent blogging and social media efforts, home listings for home owners we represent can be found online by address. We had a local sign maker create a new sign rider with the heading, "Google this address." We've been placing these riders on many of our signs instead of brochure boxes.
The Benefits:
1. No more wasting of paper, gas or time ~ Reduced Energy Costs
2. The ability to market the home 24/7 ~ More Effective & Efficient
3. The ability to create a more engaging marketing experience which includes media and video
4. Viral Marketing opportunity which increases exposure
That was then...This is now!
We're seeing more agents use these sign riders in our local area. That's great. Whenever our industry has the opportunity to move in a direction which uses our natural resources more efficiently and serves our clients and community, we love it!
One Caveat...make sure you've done the work which enables the sign to actually yield a google indexing. Here's an example from one of our home listings...1028 Ada Place Dr. SE Grand Rapids, MI 49546.
Housing bubble picture is courtesy of the truth about real estate on flickr
Google this address picture in front of 4537 Buchanan Ave SW, Wyoming, MI is courtesy of Auduhomes and Audu Real Estate
Copyright 2009 Audu Real Estate All Rights Reserved
I actually heard this comment recently! "I can't waste my time on that Internet/social media stuff...I've got to do my real job." I opened my mouth to say something, and nothing came out! I admit to still being somewhat taken aback by the number of professionals in a variety of areas who fail to comprehend that the Internet is REAL. And...just so you know, it was not invented by Al Gore! The REAL time, which I've invested in building a presence on the the VIRTUAL online world has resulted in many transactions and opportunities over the past three years. In fact, it would be very expensive for me to ignore this incredibly important enhancement to my everyday job...It's simple really; for the proof of the pudding has proved to me how important being visible to potential buyers, sellers and referring agents is. Real estate is what I REALLY sell, it's not about pretending at all. I'd like to invite you to take a virtual tour of this new listing: 4537 Buchanan Ave SW, Wyoming, MI! It's a home which feels like new! Over 2000 sq. ft of allows for spacious living and the REAL price of $114,500 won't break the bank! Call us @ 616-791-0511 for a private pre-view! You won't be disappointed. :) 4537 Buchanan Ave SW, Wyoming, MI 49548 You'll enjoy the surprise factor in this Wyoming home! ATTENTION: Home sellers; statistical analysis from the National Association of Realtors indicates that over80% of potential buyers for your home are searching on the Internet right now. They're REAL buyers who will be buying real property. If you'd like to know how we use the resources online to successfully market homes in Grand Rapids, Michigan, please contact us: info@auduhomes.com or 616-791-0511.
I thought I'd take a moment to share just one example of how the Internet is a part of my REAL job. Several weeks ago, a call came into my office from an agent in another part of the state. Guess where she'd found me? She was trying to place a referral and had gone to the place where most people go to find information these days...the Internet.
4537 Buchanan, Wyoming, MI 49548 View Map
She's been well maintained and updated in all the ways that matter! The spacious tiled entrance foyer leads to a living room with large picture windows and a gas fireplace.
The home features new flooring and paint throughout. The kitchen includes new appliances, tons of cupboard space and an adjacent main floor utility. Around the corner in the dining area is space for a desk to hook up your computer.
Accented by professional landscaping, the white picket fence frames the yard which includes an additional storage shed. With a 2 stall garage, shed and storage space throughout the home...this is a home to grow into!
Copyright 2009 Audu Real Estate All Rights Reserved
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Grand Rapids, Michigan Real Estate including information on local real estate market conditions and insights from Lola Audu ~l Grand Rapids, MI Real Estate Broker.
Lola Audu, CRS GRI
Associate Real Estate Broker & Owner Audu Real Estate
, Grand Rapids, Michigan
I have been a Realtor since 1995 and have had the opportunity to meet and assist hundreds of families and individuals. Over 95 percent of my clients hear about me from a friend or family member. I don't believe in a cookie cutter approach, rather I think that each transaction should be handled the way a skilled tailor would fashion a suit made to fit.
I have travelled extensively within the United States and several countries. My background in an international community exposed me to individuals from all over the world. As our nation becomes increasingly diverse, this wonderful opportunity I have to live, work, play and gain knowledge about all God's children is a gift I celebrate every day!
*Lola has written and taught a variety of courses. View her Training courses on-line....
An important professional development this year is the opening of our new real estate agency, Audu Real Estate. We've outgrown our previous location and will be moving to a brand new refurbished office on the corner of Alpine and 4 Milejust behind our current office. The address is 3659 Alpine Our office suite is adjacent to Audu Engineering Consultants, a full service civil enginering firm. Audu Engineering Consultants also provides structural services and design consultation for subdivision developers which enhances the options available to our investor clients.
Our team currently has full-time real estate specialists who work with several auxiliary consultants in the lending and inspection industry and strive to provide memorable, grace-filled real estate transactions to our clients, their family and friends. Each Client Specialist at Audu Real Estate commits to a rigorous on-going program of training and personal development. "On Track for Success" our agent training program is a 1-2 year long apprenticeship to ensure that the skill and art required to become a professional real estate practitioner are mastered.
As Internet savvy real estate professionals, we utilize the power of blogs and online professional networking to enhance the flow of information about the housing market in Grand Rapids, Mi and to market the homes we represent. Because we embraced this emerging technology early, our clients receive are kept abreast of the latest developments which are impacting the purchase or sale of a home.
This commitment to excellence and dedication to our clients is expressed daily in follow-up, follow-through and results! Meeting and exceeding your expectations means that home sellers and home purchasers receive extensive research for their homes and several have received multiple offers on homes listed for sale this year; one of the most challenging markets our local area has ever experienced!
Audu Real Estate: How We do Things Differently.
In addition to assisting sellers with selling their homes and assisting buyers with their home purchase, we offer a number of specialized unique services and products which include:
1. Staging your Home for Success
We provide staging expertise to help you make your home a memorable showing experience for potential home buyers and their real estate agents. We have access to a number of individuals who have extensive experience in interior design and home accessorizing. The service of staging can cost several hundreds of dollars, but there are indications that a properly staged home nets 7-13% More than a home which is not staged. This service is FREE to our clients. To learn more....
2. E-Neighborhood Reports- FREE to our Seller & Buyer Clients
An E-Neighborhood Report is a detailed 15-30 page report about the neighborhood including recent sales, types of financing, community demographics, types of homes and much more! We also make this informative report available to buyers to compare up to 4 DIFFERENT communities before making an important investment decision. The E-Neighborhood neighborhood analysis is combined with a Professionally prepared Comparative Market Analysis to focus on homes which are most like yours in your community. The benefits of understanding these facts prior to listing or purchasing a home are important in protecting your home equity. To learn more...
3. Broker is also a trained Loan Originator and has processed closed loans
We are Realtors and this is by choice. But as the mortgage industry has expanded in recent years, it became clear that we needed to have more understanding in this area for the benefit of serving our clients. We are able to provide assistance to clients in selecting the right loan and reviewing options for financing. The Broker's knowledge of financing has helped clients make wise choices in a number of different situations including re-financing a home, negotiating short sales with banks and comparing different mortgage programs. We will work to create a cooperative working arrangement with any Mortgage lender the buyer selects and monitor the transaction to ensure a smooth closing.
4. Experience with Relocation and Sales nationwide and internationally
We have closed transactions with clients in a number of states and have worked with clients who have been relocated or been on assignment overseas during the process of transaction. Lola Audu's cross-cultural experience in living and visiting several countries on three continents gives her a window to the world and this appreciation and dexterity enables us to provide an understanding environment which is sensitive to the unique challenges of differences in backgrounds and culture. We serve and honor the dignity of the human soul and that transcends culture.
5. Foreclosure & Short Sale Negotiation
For Homeowners...
We have successfully negotiated and assisted many clients through the bewildering and disheartening process that often accompanies the unfortunate circumstances which may necessitate a short sale. Our focus and energy is directed in giving sound counsel and providing clarity. We understand that by the time a short sale or foreclosure is necessary, people are drained on a number of different levels. Our goal is to provide the information & support to get the home sold and whenever possible avoid more trauma.
For Home Buyers...
Grand Rapids, Michigan has recently gained national recognition as being one of the most affordable places to live in the United States. This is a solid community and Investors are beginning to appreciate the opportunities that exist here. If you are interested in investing in the Grand Rapids, Michigan area, this is an excellent time to be a buyer. We provide a number of services and referrals for Investor clients.
Get Free List of Forclosures in West Michigan and surrounding communities....
6. Thoroughly Well Trained Agents
Every new agent with Audu Real Estate is enrolled in a 1-2 year apprenticeship. In addition to weekly educational classes, agents are required to complete assignments and work with a skilled Mentor to develop their skill set. All contracts are reviewed by the Mentor. Because we know that we can't improve or correct what we do not know, ALL clients are given an opportunity to grade our agent experience. Compliments our agents have received can be viewed here. You can also see Examples of Class Selections and Training offered through Audu Real Estate including our NEW 2007 Learning Series.
7. Negotiation of Transaction & follow-up Through to Closing
We present all offers and include a Net Sheet. There is NEVER a surprise about the proceeds at a closing. Negotation is a skill set and an art form. It requires an understanding of legal implications and an ability to protect and enhance a clients options and position. The real estate transaction is inherently adversarial. Both parties aim to get the best deal possible. We don't think this necessitates enmity. Our aim is to ensure a fair and good result for our clients. We know that our reputation for fairness and competence benfits our clients and their real estate concerns.
When you're ready, Use this Site to Search for Homes in Various Local Grand Rapids Area School Districts....
Search the Local MLS for Homes in Byron Center School District,Allendale School District,
Cedar Springs School District, Caledonia School District
Comstock Park School District, East Grand Rapids School District
Forest Hills School District,Grand Rapids School District
Grandville School District,Wyoming School District
8. Other Stuff...
Yes, there are all sorts of things that we do to serve our clients. First of all, it is our sincere desire to build friendships, not just sell homes. We take the time to really listen and seek to understand. We keep in touch, not just because it is our job, but because we want our clients to be informed participants in the process and we also enjoy touching base. We've assisted with arrangements for cleaning, moving unwanted debris, shoveled snow, made a bed, done some dishes. But, what's this amongst friends! Lastly, we know that no one is introduced to our practice by accident. We strive to discern the true reason for the encounters we experience. Our weekly prayer focus for each client is for God's blessing in their lives in the way they need it most. Sometimes, this may be the greatest service we give.
BLOG DISCLAIMER
The information contained in the articles on this blog is the property of Audu Real Estate. Comments posted in response to individual blog posts are the opinions of the respondents. Audu Real Estate is not responsible for the opinions, thoughts or ideas expressed by visitors to this blog nor for any liability for any damages or losses direct or indirect that may result from the
use or reliance on information contained herein. The information provided is deemed reliable but not guaranteed. This blog is provided for informational purposes only. Readers are advised to contact a real estate professional for specific counsel related to their individual real estate needs.
Recent testimonial-- 2008
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. Click here to continue reading...
Dear Renee & Lola
I wanted to write a quick note and thank you BOTH for all the love and concern and just plain WORK you put into our journey of finding the "right" owner for my folks home these last 6 months.
I was pleased from beginning to end with everything. It was all handled with such excellence and I am sure quick to refer anyont to your company, Lola :) And thank you for the lovely roses that were delivered to the office on Friday...What a treat!!! You two were the best. Thanks again for everything,
Thank you so-o-o much for your diligence; but most of all for your prayers. Praise God
Flo G.
Dear Lola,
Thank you for taking time for the staging appointment at my folks home. What a neat experience! I learned so much and realized how much you know. Thanks again for being everything God has called you to be.
Love Sue
Dear Lola & Ed,
Thank you for giving us such a smooth closing on the condo. It is always enjoyable to work with professional Realtors like yoursevles.
Best wishes,
Dave
P.S. Let's not wait another 5 years to do another deal!
Things went great! Thank you again.
Rich & Linda
Please visit us on-line at http://www.auduhomes.com/ to view many comments from our clients!
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