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Archive for the 'Buyer Information' Category
One (1) Major Reason to get a 30 year Fixed Rate Mortage (and that’s all you need)
April 9th, 2012
Everyone looking to buy a home in today’s marketplace is struggling with deciding what kind of loan to get. Should they go “really low” and get an adjustable rate mortgage for 5, 7 or 10 years?
… Or should they go with the tried and true 30 (or 20) year fixed rate mortgage?? With today’s record setting low rates I don’t believe there is any doubt a 20 or 30 year fixed rate mortgage makes the most sense for almost everyone in today’s market.
Here is the most important reason why – and almost the only reason why:
1. Check out this Cost Comparison Chart and become a BELIEVER
Here are the Cost Comparison’s for the major indexes in the United States. ONLY the monthly fixed rate mortgage ends up having a 0% of change on the Price Index. We all know our food, gasoline, medical care and tuition have all gone crazy since 1981 – it is only the monthly mortgage payment on a median priced home (which at that time was at 14% – and was not refinanced with any cash out) that did not skyrocket…it didn’t even go up!
Words of advice:
1. Find a good lender (we’ll send you a list if you like). With rates as low as they are today you can shop closing costs and rates.
2. Find a good REALTOR (that would be us) who can lead you through the process.
3. Rest easy with the knowledge that today’s marketplace offers great value and if you go with a fixed rate loan – future stability
4. Don’t refinance for cash out during the time of your loan (you probably won’t have to since the rates today are so low.
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Grand Rapids Real Estate Stats – Things are lookin’ UP
March 7th, 2012
There are two trends that we are tracking here – which should be of interest to any buyers or sellers in the marketplace today. Both trends can be predictors of the marketplace
Trend # 1 Fewer Listings
The first trend is the light green graph, which shows the number of listings on the Grand Rapids Association of REALTORS site. We have fewer listings on the market today than in the past 12 months. What does that mean right now? For Buyers: Fewer choices. Since it is trending this way you can pretty much plan that the choices will even diminish more – so make your move when you find the right house or condo – don’t wait!! For Sellers: Better chances of selling since you have less competition on the marketplace.
What does it mean for the future if this trend continues throughout the summer? Simply that prices will begin to go up – it’s a simple supply and demand equation
Trend #2 Pending Sales are up
This trend is shown with the solid line and triangles - It’s the Pending Sale Numbers. This trend mirrors the consumer confidence that is showing up in the marketplace. A combination of historically low interest rates and unemployment numbers improving has given consumers a better feeling in the marketplace than we’ve seen in years. Our foreclosure numbers are decreasing and job growth is picking up – so it’s not just a Spring Market driving the Upward Trend of Pending Sales.
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It’s Fall…and more than leaves are Falling – Record Low Interest Rates are here!
October 27th, 2011
It’s Fall…and more than leaves are Falling – Record Low Interest Rates are here!
OK – I’ve refinanced and the rates are still dropping. Who could have predicted the rates for a 30 year fixed rate loan could drop below 4%??? So, now there are record low interest rates – why aren’t more people buying homes? Good Question!
I have 3 quick guesses why folks aren’t buying even with these low rates:
1. Banks aren’t lending like they used to.
We’ve swung from the practice of giving mortgages to anyone who was breathing (a good thing since it caused a good deal of the foreclosure crisis), to not giving really qualified folks mortgages due to more rules and regulations. Don’t let this deter you! We have some great lenders who recognize a qualified buyer and will work diligently with you to get you qualified.
2. Consumer Confidence is a bit shaky.
With the number of buyers down, a new opportunity opens up for you – lots of homes with prices like we have not seen in years – couple this with these low interest rates and it is a fabulous time to buy. There are many signs of a rebound – so stay tuned!
3. It’ Fall
There is a perception in the marketplace it’s best to buy in the Spring – Not So! As sellers head into the Winter months their motivation is even stronger to sell – so some great prices are available in the Fall Real Estate Market.
Don’t let these three things get to you this fall as you consider getting into the homeownership status. Rates are GREAT! Inventory is HIGH! It’s a great time to buy your first home or your dream home. Give us a call or send us an email for a complete search and home buying information. Pat Vredevoogd Combs, Coldwell Banker AJS-Schmidt, 4488 Cascade Road, Grand Rapids, MI; 616-559-7241 pat@patsplace.com
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Earnest Money…The What, When & Why’s
August 15th, 2011
Lately I’ve been helping a lot of first time homebuyers purchase their dream homes. In almost every instance there are questions along the way about some aspect of the Earnest Money process – so here are some of the most asked questions – and their answers:
1. What is Earnest Money?
The simple answer is – this is money the buyer puts up (most often into the Trust Account of their Real Estate Broker) to show the seller they are “Earnest” in purchasing their home, land or business.
2. How much Earnest Money is usual and normal?
The amount varies around the country – I’ve heard of it being as much at 10% of the offer price in some parts of the country. Here in Western Michigan the custom is that the earnest money is around 1% of the offer price. On foreclosed properties the bank might have a set amount they MUST have and in some cases it becomes non-refundable after inspections.
If there are multiple offers it’s always a good idea to consult with your agent to see if perhaps having a large earnest money check might give you a bit of an edge, especially if the offers are similar. (I recall an old time Realtor – every time he presented an offer to his sellers he would lick the earnest money check and stick it on his forehead – where it would stay during the entire presentation – just so they could “see” the money).
3. Do I get it back?
Most often the answer is YES. The earnest money and its disposition are addressed in your purchase agreement. Typically the money is refundable if any of the contingencies in the offer are not met. These contingencies can consist of: financing, inspections, other zoning or legal matters – all must be addressed in the purchase agreement. If all contingencies have been met and you walk away – then there is a good chance you do not get the money back (after all the money is to show you are earnest in buying the home).
4. Who holds the Money?
All states vary a bit – here in Michigan the Earnest Money is deposited into the Trust Account of the Real Estate Brokerage you are working with. In some instances the Title Company will hold the check (new condominium project, bank owned properties) in their Trust Account. There are very strict rules about broker’s trust accounts – there can be no co-mingling of funds with the broker’s other accounts.
5. When do I see my money again?
At Close! Typically the Title Company will use the earnest money as a credit to you at the close. In a foreclosure or a bank owned close, the agent might be bringing the earnest money check to the closing for you – to use as a credit for you.
6. Do I need a certified check or money order?
In Michigan, for a normal sale the answer is – No – your own personal check will do (but a certified or money order will always work). Many banks insist on certified funds for their earnest deposits on foreclosed properties. If you only have cash, a real estate office is usually not equipped to take in a lot of cash – especially on a weekend, so a money order would be a good alternative.
Any comments – questions – suggestions – or good Earnest Money stories are welcome!
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It’s County Fair time in West Michigan! Moo – Oink – Yippee!!
July 5th, 2011
I love a county fair – and this is the time of year to really enjoy them – here is a list of the county fairs within easy driving of Grand Rapids this summer:
(in date order)
Montcalm County Fair - July 3 – July 9 – Greenville
Mecosta County Fair – July 11 – July 16 - Big Rapids
Berlin Fair – July 18 – July 23 - Marne
Ionia County Fair – July 21 – July 30 – Ionia
Ottawa County Fair – July 25 – July 30 – Holland
Muskegon County Fair – July 26 – July 30 – Ravenna
Kent County Fair – August 8 – August 13 – Lowell
See you there!!!
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It’s a HOT! HOT! HOT! Real Estate Market
June 23rd, 2011
Despite all the negative publicity and crummy stats getting thrown at us – the real world real estate market in Grand Rapids is HOT!
Last week we put three sales together (condo in the 150’s; home in the 200’s; executive home in the plus 1,000,000’s) and are working non-stop this week with buyers. We wonder what is causing this resurgence in buyer activity and attribute it to one of five reasons:
1. WARMTH
It’s summer and we’re finally feeling warm and fuzzy – which brings out the positive attitudes needed to step up and make the move to buy a home.
2. LIGHT
Once again – It’s summer – and in Michigan we’re on the far Western side of the Eastern Time Zone – so it stays light until 10pm – which gives us much more daylight to look at homes in the evenings.
3. CONSUMER CONFIDENCE
Here in Michigan our housing market took a dive earlier than any other area of the USA and we are digging back out earlier than other areas too – the folks we are working with looking at homes have a very positive attitude, can qualify for loans (and are getting phenomenal rates beside) and are making the move.
4. GREAT PRICES
It’s taken the sellers a few years to realize the market isn’t like it was in 2007 – so sellers are actually pricing their homes TO SELL! Buyers are having to adjust a bit because their idea of “screaming deals” are the relationship between list price and sale price – now that the list prices are becoming more reasonable, sellers are often getting “their price” – even though it happens to be at 2000 levels.
5. HOMES PRICED RIGHT AND SHOWING GREAT ARE SELLING FAST - SOME URGENCY!
As more buyers enter the marketplace – the inventory is going down. Two of the offers we wrote last week were multiple offers (our buyers got the houses!!). Many sellers are listening to their agents and staging their homes so they are showing well, that coupled with a price to sell has some homes selling in a matter of days or weeks. Hopefully gone are the days when it takes years to sell a home!
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Heart of the City – 52 Monroe Center, Grand Rapids, Michigan – SOLD!!!
March 17th, 2011
Ok – Who wouldn’t want to live in the hub of Grand Rapids – right on Monroe Center – in a fabulous 2 bedroom condo. The best of the “old” and the best of the “new” all rolled together in one gorgeous unit?
This has everything! Exposed brick walls, tall rounded windows, wood floors coupled with updated bathrooms, cherry cabinets, granite countertops and stainless appliances – WOW – and within walking distance of all your favorite restaurants and bars.
Just Listed and Just SOLD in less than 1 week.
I know there are a lot of folks who love the urban life style. There is great walkability! Go to the theater, catch a concert on Rosa Parks Circle, no parking worries for Van Andel Arena Events… the list goes on and on…it’s a great lifestyle. Walk to work, jog down to the Grand River and catch the fireworks…Grand Rapids has so much to offer in the heart of the City.
Looking for something similar? We can help!
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Sqiggles and Squares – What on Earth is a QR Code??
March 16th, 2011
The future of home shopping has arrived! Imagine driving up to a home for sale, pulling in the driveway and being able to determine the price and check out photos of the inside without leaving the comfort of your car!
The funny looking symbol to the right and those attached to our listing signs are QR Codes or Quick Response Codes. And they do just that – provide a quick response to your inquiry about the home in one quick QR scan. Try scanning the QR Code with your smart phone and check out our listing. Coincidently, it’s for sale and is a great horse farm!
Just as bar codes replaced key punching in the grocery store check out, QR Codes will speed the process of looking at real estate. All you have to do is download a QR Code scanner to your smart phone and you are ready to do some serious house hunting!
Naturally, REALTORS play a big part in this. We provide the photos, prices and home details the QR Code interprets. And our phone numbers and email addresses are listed so we will be able to provide professional advice on your home hunting decision.
1041 Thornapple River Drive, Ada, MI – Sold in 32 Days!!!
January 26th, 2011
Think Summer!
Take a look at this great waterfront home in the heart of the Ada/Cascade Corridor – just 15 minutes from downtown Grand Rapids. It could be yours – check out the floor plan and Summer Waterfront Activities that go with this totally updated home.
…Or think about enjoying a beautiful Michigan Winter by snow shoeing, cross country skiing or skating right here on the frozen river – but within minutes of a skating rink and trails…then coming home for a hot toddy in front of any one of the 3 gas fireplaces in this home. Panoramic views from almost every room – Gorgeous landscaping with pond and waterfall – All for only $485,000!
Viewing Homes – The New Normal – On-Line or In Person???
October 27th, 2010
The Internet has revolutionized a lot of things: think – talking to your friends – communicating with your relatives – setting up appointments with your doctor – shopping…. it goes on and on!
Real Estate sales are not exempt from the Internet revolution – and the way folks select homes to see and buy is changing along with everything else. I will tell you I am a bit biased because I still believe a buyer of a home needs to walk up to the door – walk in – and feel a WOW!!! The actual buying process is more than an Internet look. It’s the sight, the smell and the feel that makes a house a home.
That being said – the way most people arrive at the buying decision today is vastly different than even five years ago. Today, most folks start their searches on the Internet – not the newspaper or driving around looking for signs or working with a Realtor like they did in the past.
With the advent of high resolution photography – inexpensive digital and video cameras – a buyer can cruise the Internet and see floor plans, room decoration from many angles, photos of the neighborhood and just about anything else about a property. This is good news and bad news all rolled into one. Good news everything is so transparent – bad news that buyers often rely on just photographs or videos to make the decision whether or not to go see the home in person.
I often find out of town buyers who are only in town for a weekend have already made up their minds on what homes they want to see and those they don’t want to see. Most of these decisions are being made on the basis of what they saw on the Internet. Time and again, I see folks reject some perfectly good homes because the photos were either unavailable (shame on you agents who don’t take photos or hire a photographer – what an injustice to your sellers!) or were bad photos.
In the past, a buyer had to go into a home to rule it out – today they don’t need to go that far. Buyers are taking their first tour of a house on-line. By the time an actual showing is set up on a house – it could be considered a second showing since it has already been viewed on-line.
Sellers: Make sure your agent has great photos of your home.
Buyers: Don’t rule out a house just because the photos are unavailable – or you don’t like the decor – work with your agent to make sure you’re seeing the cream of the crop – not dumping something because it isn’t photogenic.
