Pat Vredevoogd Combs-Grand Rapids, MI Broker

Closings are a good thing! But what is a Closing exactly?

One of the questions I get asked all the time by both Buyers and Sellers is: "I'm always hearing about a CLOSING - what is it?"

Here are 5 things you should know about closings:

1. What is a closing?

A closing in the State of Michigan is the culmination of a real estate transaction. This is where the buyer and seller get together (sometimes in person - sometimes not) to sign the final papers and transfer ownership. The buyers bring in their down payment and closing costs (the bank/mortgage company brings in the money for the mortgage) and the buyer becomes the legal owner of the property...the sellers, in most instances, receive their money and are no longer the owners of the property. The HUD Closing Statement summarizes the transaction and looks like this. Keep in mind in many states there are things called Escrow Closings which I am not addressing here.

2. Where do you hold a closing?

In the Grand Rapids area, we hold most of our closings at a title insurance company. Some are located inside real estate offices, while others are in offices in different areas of town. A few even have mobile closings and drive up in a Mobile Closing Van (although they do come into the office to do the closings - I've not attended any sitting in a van). The Realtor representing you (either as a buyer or a seller) will let you know well in advance where your closing will be held and at what time. Few title companies do any closings on the weekends or after 5pm - so you will need to coordinate your work schedule around attending.

3. What if you are out of town or can't make it to a closing - can it still close?

Yes, we have various ways to facilitate closings if you are not able to attend:

a. You can appoint a trusted friend or relative (or even your Realtor) to be your Power of Attorney for your closing. I have served as POA (the acronym for Power of Attorney) in a number of occasions for both buyers and sellers. Make sure your agent knows well in advance you would like a Power of Attorney because this document must be O.K.'d by the lending institutions and there is a charge to record the POA. These charges will go on your Closing Statement. Here is a copy of a general Power of Attorney

b. If there is ample time - the title insurance company can send you the papers which you need to sign - provided you sign them in front of a Notary Public. Usually the package will be overnighted to you for your signature and you will overnight the package back - it is rare this package would go regular mail simply because time is of the essence in the closing process. Time is important because for the seller - each day that a home does not close they are paying interest on the mortgage they hold. For the buyer time is important for many possession issues.

4. How far ahead will I get all my information about my closing?

A closing date (or at least a "not later than date") is part of your purchase agreement in most cases - so you will have a general idea when you will be closing. Your agent will let you know where and at what time the closing is scheduled.

In an ideal world I would like to have my HUD Closing Statement at least 24 hours before the close so I can review it with either my buyer or my seller. The buyer needs their numbers so they can get their certified check to bring to the close. The seller needs it often to take to their next closing on the home they are purchasing. Sometimes an advanced closing statement doesn't happen due to the package coming late from the mortgage company - so everyone needs to be patient and keep their cool.

5. Will the buyer and seller finally meet at the closing?

Most of the time - YES! In my closings I like to have the buyers and sellers separately sign their papers (there is a lot of personal information that many are signing and it seems a bit awkward for some of the parties to the transaction) and then while the closer is making copies (or CDs now) for all the participants - I like to have everyone come together. Here are some of the things that happen during this social time:

a. keys are passed from the sellers to the buyers (if there is possession at close) If possession is later we talk about the best way to have the keys change hands.

b. garage door openers and any other pertinent information is passed on to the buyer.

c. Utility change over is discussed

d. It's a nice time for the sellers to give the buyers some insight into some of their neighborhoods and the things they like best there - also to tell the buyers about any little quirks about the house that would be hard to figure out when just moving in (like the hidden light switch for the floor lamps, etc.)

e. I like to have the sellers and buyers exchange phone numbers and new adresses for the seller in case some stray UPS packages come through or some mail doesn't get forwarded correctly

Expect to spend about an hour at a closing and above all - HAVE SOME FUN!! This is the culmination of a lot of hard work by the Buyers, Sellers, Realtors, Mortgage Agents, Title Closers, etc. to make this a win/win for everyone

Let me know if you have any questions about closings - I'm happy to answer any - I've been closing homes in the Grand Rapids, Michigan Real Estate Market since 1971 and have lots of varied experiences with closings that I'd love to share.

OK - so Michigan has a little winter now and again. It also has an awesome summer, spring and fall that will rival some of the "one season only" states that call themselves retirement communities.

OK - so I'm prejudiced - I was born and raised here and love Michigan. The winters are pristine and beautiful to go along with the blossoming springtimes, waterfront summers and colorful fall foliage. The art and music communities are alive and well plus the opportunity to serve in all volunteer capacities is very fulfilling. Philanthropy runs high in Michigan along with pride and a high homeownership rate - all providing a great place to retire.

Thanks to a new study, Michigan is the most advantageous place to live if you are watching your tax dollars. There are a number of tax breaks and tax treatments that are really cool for Seniors. They have defined Seniors as those over 65 years old - that actually seems pretty young to me as I 'm heading in that direction.

I'm not sure I'll be able to convince everyone looking for retirement that Michigan is a great place to be - but those folks who want beautiful landscapes, great sunsets, thousands of lakes, 4 gorgeous seasons, art, theater, symphony, ballet or a quiet place in the woods - plus advantageous tax positions: Michigan is the place. Take a look at the article and see for yourself!

http://www.mlive.com/news/index.ssf/2009/11/senior_tax_breaks_cost_states.html

How cool it is to see so much excitement and energy generated here in Grand Rapids, MI with Artprize. Artprize is an Art competition with huge monetary prizes but with judging by the public on line. A very community based free flowing competition with art as the centerpiece.

I was walking around on Friday taking a look at the artists and the art all over downtown and was amazed at so many things! Check it out at www.artprize.org

First I was amazed at the positive attitudes of everyone. From the artists who were engaging the public in discussions about their work - to the throngs of people out to see the art - to the merchants who housed the art - and just the various folks enjoying the festivities - they were happy!

Smiles were on the faces of everyone - what a wonderful attitude stimulus. Here we are in Michigan. We are faced with some mighty economic challenges and we can take some time to enjoy and be positive! Hurrah!

Secondly, I was amazed that this great opportunity to see the art and engage these artists is all FREE. Sure you can buy a wristband to take the shuttle around the loop of venues and get a book with all the artists in it - but you certainly don't have to. The GR Press has published all the maps and the venues and you can find them online - so it would be very easy to see everything totally free. This in itself makes you smile :))

'Third - It is building a great sense of community. Sometimes when we are in some difficulties we tend to hunker down and curl up inside ourselves when in reality we all need to reach out to each other and support one another to get through any tough times. What a collaborative venture this has been - the art community is hanging out with the shop keepers who are opening up their businesses to the throngs - it is a cooperative circle that is building a wonderful community of help for one another.

Fourth - Its FUN! Smiles are great! Paper Airplanes flying in the wind and as my granddaughter Anna says "got dumped on my head and it was so cool" making people laugh.

Fifth, it's bringing business to the entire community. Restaurants were full - hotels were sold out - hot dog vendors were dogless by early afternoon - Great Business Builder for our Grand Rapids area!

Thank You to everyone associated with Artprize - You've made my home town proud!

I'm not sure what has happened to the general civility in the real estate marketplace - but along with my 401K it seems to have diminished considerably.

Here is my wish-list for all agents that we work with as we bring buyers and sellers together here in the Grand Rapids, MI Real Estate Marketplace (after all that is what our job is - isn't it?)

1. Have a fool proof way to get a showing set up. This means day and night, weekdays and weekends - I am trying to show your listings and would appreciate the courtesy of a call back or an email back. This includes how I get in to the property.

2. Be accurate with the facts on the listing or website. Time is important to the buyers when looking and to sellers who have to clean up and get their homes ready to sell. If the house really has only one bedroom and you list it as a 3 bedroom - you are wasting every-ones time in showings.

3. Return phone calls or emails. We are all busy - don't try to prove you are busier than everyone else by never returning a call - all it serves is to aggrevate and does not help in putting transactions together.

4. Know the market. It is our job as professional Realtors to know the zoning, know the property tax implications, know the mortgage status of our listings - and everything pertinent to selling - or buying - so we are the experts. Let's make sure we get that information on our listings and accurately portray it for the selling agents.

5. Smile and Be Nice - We are all in this together. Our market is picking up and we need each other to make 2009 a great year for our customers and clients.

Well March Madness is going on in the Grand Rapids Real Estate market just like it is happening on the Basketball Courts right now.

It is a mixed story - there are winners and there are losers in this market just as there are on the basketball courts.

The big winners today are the buyers who can take advantage of the $8,000 tax credit (first time buyers or someone who has not owned a home in the past 3 years), low prices, huge selection and low interest rates.

Other winners are move-up buyers who - even if they have to take a hit on their homes that they sell - will make it up on the home they buy and will still be in the dirvers seat. Winners are also those sellers who have owned their homes for a while or have not run up their mortgages to close to purchase price and are selling in today's market - there are still buyers out there looking for their dream house.

Unlike March Madness in Basketball - there is not one winner that will be crowned National Champion - in the real estate game there are loads of winners that can capitalize on this March Madness Marketplace.

My advice to all who find themselves in the "possible winner category" is to find a Realtor who you like and who has the credentials to help you - and let them lead you through some of the mine-fields of this market full of short sales (which often never close) and foreclosures (which need special attention to get accepted and closed).

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