Lola Audu~Real Estate Broker/Owner Grand Rapids, Michigan Real Estate

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

It's one of those mornings when I'm rushing around trying to get too many things done before I head out the door. Yet, my eye catches the flash of my phone which I've turned OFF precisely to avoid this type of distraction. I can't help myself. I pick up the call.

The voice on the other line is friendly...and unfamiliar. I instantly regret my mistake in picking up the phone. He launches into a sales pitch. This guy is good! He starts out by telling me that he's got referrals that he has to get placed today. Folks are coming in to Kentwood, Michigan and he needs to find an agent to help them. Could he interest me?

I cut to the chase. "So...how much is this gonna cost?" Without hesitation, he answers..."only $99 per placement. And if they don't work out, we'll replace them with a guaranteed fit. In fact, we're so confident about our product, that I want you to know about a special deal. Our clients are FOR SALE today! We'll give you 10 of them for only $990! WOW!

It's the phrase 'clients for sale' which stuns me momentarily. I have never thought of the people I serve as products which I can trade or sell for profit. He takes my silence as interest and continues. "In fact, we're so confident about our service, we'll guarantee you ONE sale out of the 10. All for $990!

I wonder WHO these clients are? Did they consent to be used for chattel? Are they aware that their names and the hopes and dreams they expressed when they filled in the innocent looking boxes for assistance with their home search would result in their information being sold and traded on the real estate referral market place?

And then I think about the agents who are going to buy these names today. Sinking hard earned dollars for the hope of landing perhaps one real estate deal. And I guess one could do the arithmetic and figure that you'd be ahead if you spent $990 and got a deal that netted several thousand in commission perhaps...

But what's lost in the frenzy of boiler rooms filled with fast talking sales persons looking for the next sucker willing to part with some money, is the fact that real estate referrals are NOT really about selling people's names and data. It's about creating human relationships which begin through a need for service. People refer people whom they know, like and respect to others whom they know. Genuine Referrals are personal. And that's why things become a little dicey when we take the referral relationship out of the personal context.

It's also why social media and sites like Active Rain are so incredibly powerful. Through blogging, engaging with people on the network through comments, building relationships on sites like Facebook, Twitter and LinkedIn, answering questions as a local expert on Trulia, Zillow or Localism, we put into place the powerful personal building blocks which create authentic communication.

Over the next couple of days, a small group of individuals will be taking the time to understand how to do this effectively. Relationship skills are not a hit or miss proposition. Anyone who has enjoyed vibrant relationships in their personal or professional lives knows that it takes work. This applies to the online virtual world too.

And NO...there is no such thing as a CLIENT SALE. Yes, you can be sold a name, and address and a list of criteria...but that is an entirely different thing than being connected with a genuine Referral.

If you're in Grand Rapids, MI and want to stop in, check us out here...(April 16th & 17th @ the Country Inn & Suites ~ East, 3251 Deposit Drive, Grand Rapids, Mi) wwww.auduhomes.com (Click Education tab to download registration info)

Picture courtesy of glindsays65 on Flickr with Creative Commons license.

Copyright 2009 Audu Real Estate All Rights Reserved

Well, this not quite wordless...but it'll be close. :) Picture is taken along the banks of the Grand River in Grand Rapids, MI. It was a beautiful day with several fishermen fishing along the banks. We were taking a leisurely stroll on the sidewalk when I turned around and there was this shot...it reminded me of a giant rubix cube. One of my favorite puzzles. You can see more images captured during my stroll here...