Michelle Gordon

As realtor, I wonder what the long term effects are going to be by reducing our assessed values. For those of us that are planning on being in our home for a long time, the reduction in property taxes is all we are worried about.

However, for those who will want to step up in a few years.......how this will affect the neighborhoods value and listing price.

Yes we are declining in value and the neighbors are already affected. But one day we will come out of this and return to a "regular" market. However we would have reduced the assessed values so much we will still have to list for less.

Buyers still look at assessed values when making a buying decision. Most will not pay more, no matter what the comparable sales say. I do understand we all have to cut cost where ever we can, I just wonder what the long term effect this will have?

If you stumbled on this blog first go to part one.

Okay per part 2 we have narrowed down the search to 3 of our favorite homes and now we are researching the logistics of the homes.

What is the status of each home? Meaning:

Short Sale: Have they started negotiations with the bank? Are you the 1st offer in? How much time is left before foreclosure is assumed? The best advise I can give my clients/buyers on a short sale is be prepared for the long haul. It can and has taken up to 6 months to close a short sale deal. If the price is right and you love the home the wait can be worth it, but there are no guarantee's. You may get to the end and never close. If you have a lease and you need to be out by a certain time this may not be the best route for you to take. Now some short sales may have been approved by the bank and they may be to very near the "end", so it may be worth your time and trouble to go for it.............but get the facts.

Bank Owned:Most 1st time home buyers are going the FHA route. And most bank owned homes are sold "as is" so do your research as much as you can till you can get utilities on. A FHA loan will require an FHA appraisal. The FHA appraisal will check for working "everything"! 2 year life left on the roof "no leaks" and no peeling paint. If they find anything wrong with the home they will require it to be repaired and reinspected prior to close. If the bank is not willing to make these repairs the loan will not go through. You may need to research an FHA 203K loan to get the job done.

Regular Sale: I must say I do not get many of these any more, but excited when I do! Look at the listing card and see what the seller/owner has agreed to to when it comes to types of financing. If they have listed FHA they are willing to work with you on any necessary repairs that may be needed. (however needs to be outlined in a contract/offer - discuss with your agent.

Before putting your offer in, please have your agent run compatibles in the area..........also known as comps. Look at what like homes have sold for in the area in the last 6 months..........get an idea for your top dollar on the home and make sure you do not go over. You may love the home and willing to pay full price, but will the house appraise for that amount? If it will not you will not be able to get the loan. This is where you use your head and not your heart. And where our Realtor can keep you focused.

Also before putting an offer on the home have your lender run you a GFE (good faith estimate) in the climate we are in, the numbers may have changed sense the time you had gotten your pre-approval. Make sure it is ran for the highest amount you will offer to know worse case senario. Make sure you can afford te mortgage payment and the amount needed to close.

Do you need sellers to contribute to closing cost and pre-paids? This needs to be on the contract and you need to understand that this gets paid by seller out of their proceeds, so in fact by paying your closing cost and pre-paids they are already taking a reduction in price, most likely 3 percent right off the bat...

You may go back and forth a bit on price and some Realtors will choose to do a "meeting of the minds" before putting the final agreed upon offer on paper. This is why a Realtor is good to use for this process....it is not personal, it is a business deal. The sellers who love their home do not want to hear how you are going to spend money changing up the home they have loved for years.......you never know what you might of said to the home owner that may have soured the deal.

Part 4 next week.............What to do after the offer is excepted.

Yes, I am writing this blog in February when it really too cold to enjoy all the activities that the parks have to offer. However I really do have spring fever. May it be because the real estate market is having an early season, or is it just because it has been a cold long winter and I am ready to be done with the snow and cold and want it to be warm? Well, lets say it is a little of both!

When our kids were young, we went to the park all the time. Feed the ducks, played on the equipment and went to art shows........

Here in Grand Rapids our parks offer so much more to do then we did 20 years ago and we should all take advantage of them.

Currently there are 41 parks, trails and/or undeveloped green spaces in the Kent County Park system, totaling 6333 acres. 10 of which are open in the winter.

Douglas Walker
Johnson (Henry)
Lamoreaux (Donald J.)
Long Lake
Palmer
Pickerel Lake
Rouge River
Seidman
Townsend (Warren)
Wabasis Lake Park

The rest of the parks open May 1^st - among other things you can also reserve parks, reserve open or enclosed shelter-houses for family gatherings, wedding receptions, and club or group meetings.

Kent County Parks Foundation is working hard to keep up the current parks and also trying to purchase parcels of land that they have had their eye on for a long time.

To learn more about our parks click here.

Parks are very important to a community. It makes for a better place to live. A place where people can gather and socialize, a place where you can go with your family, a place to walk your dog, (yes we have a dog park) and a way to keep our community beautiful.

I have personally visited Millennium Park and Richmond Park. And hoping this foundation will bring back the pool to Garfield Park. I think the city parks are very important. Most of the homes that surround these parks have smaller yards and in the summer the kids are looking for somewhere to go. Richmond Park Pool lets anyone under 17 in for free and the place is full all summer long.

There are many ways to get involved and donate you time and get involved.

Let everyone schedule a day at the park this year!

If you stumbled on this blog first go to part one then read this blog.

Okay as discussed in the 1st blog we picked an area(s) which we want to live and we have a pre-approval from a lender. So we now know how much we can afford and the area we want to live in.

What do you want from a home? What is important to you? I have my clients make a 3 part list.

A. What you MUST have - meaning if the house doesn't have it - you do not want to even look at it.

B. What would be a bonus - not a deal breaker, but would be icing on the cake

c. What you really do not want - IE: a neighborhood without side walks, busy street.......etc.........

This list should be shared with your Realtor, so they know what you are looking for and they are not waisting your time seeing homes that really do not fit your needs.

Have your Realtor Send you listings that fit what you want, sometimes a drive by is good to do 1st, not all pics on line are a good representation of the home. If the price of the home is too good to be true, it probably is!

Set an appointment to view homes with your Realtor............I try to never show more then 6 at time to first time home buyers (relocation is different). You need to take it all in and remember what you saw. Feel free to bring a camera and take notes.

Every home will be different in status - believe me.........some will be bank owned, some will be short sales, some will be just a "regular sale". So you are not only taking notes on the condition of the home, but it's case scenario.

Meaning - How fast can you get into the home, if it is a short sale be prepared to wait ( depending what stage of the game they are in), is it sold "as is" is the seller willing to pay closing cost and pre-paids?

You do not need to research every home you look at, but the ones you are interested in you should know more about.

Make a list of the homes you really liked and try to narrow it down to your 3 favorite. Then revisit these homes and make a "good list". Check it against what you really wanted in a home list you made before. Make notes about repairs needed. Is the home going to nickle and dime yo to death?

Cosmetics are not as big of a deal as needing say.................a new roof or a new furnace. Do not buy the home just because it is pretty! Personally I would buy a home with good "bones" and updated mechanics but needs paint and flooring apposed to the home that needs updated mechanics and roof but shows very well.

Next - Part 3 - preparing to put the offer on the home - next week

Yesterday I had a great meeting with Susan Pastoor at Metropolitan Title. I have to admit they do have all the bells and whistles and "fluff" if you need it and want it.

However the biggest thing that impressed me was how green friendly they have become. They have a green task force so they are sure to stay on top of things.

They have become as much paperless as they can be. They scan docs into the computer so every office can see the paperwork...........therefore cutting down on faxes and copies.

All the paper they use is recycled paper and the closing docs are put on a CD for everyone involved.

What a great way to keep your closing documents............less clutter, less paper............means not only are they green friendly, but we as Realtors have less to put in a box to keep. And buyers and seller can down load on their computer and have it always..............

No more lost docs, no more "I can not find the file from 8 years ago"............it is all on your computer! (do not forget to back up)

For me using e-mail is the best as I can file the paper work and pick it up anywhere, no matter where I am at the time. Most young 1st time home buyers prefer this kind of communication - now only if we could "text" it, huh? lol

Susan has worked with me in the past on F.L.O.W. project, so I alredy knew she is a dedicated hard working person.............now I have a great title company to work with as well!

I urge you to meet with her and see what they have to offer...............

Susan's onfo:

Susan Pastoor

Marketing& Sales Manager

Metropolitan Title Company

Phone (616) 291-0274

Email Address: spastoor@metropolitantitle.com