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Archive for the 'Seller Information' Category
Do you leave yourself “Open” to theft when you have an Open House??
August 20th, 2010
Sellers Be Attentive! There are loads of really good things about Open Houses – like they might get your house sold – or the neighbor down the street, who has a brother moving to town, might stop by to see it and refer it to her brother.
It is a perfect time to finally get your home organized and it’s a forced way of washing those windows you have been putting off for months. Some buyers feel much less obligated if they can find a nice neutral time to view a home – so an Open House is a perfect time for them to slip through.
But before you have an Open House, make sure you have an open discussion with your agent about the things that will keep you and your home out of trouble. Over the past years, we have had really very little theft from Open Houses – which is a good thing. However, there is no sense in tempting fate – so put away your valuables, jewelry and any small items that could be stuck in someone’s pocket – better safe than sorry.
The other thing most folks don’t think about – and something that is becoming more and more prevalent – is the theft of prescription drugs. The most innocent looking people are doing it. I heard of a little gray-haired lady who asked to use the bathroom and was stealing drugs from the medicine cabinet! Again, don’t tempt fate. Put away all your prescription drugs before an open house.
It actually is pretty rare anything goes missing from an open house – so the odds are pretty good to continue to have Open Houses – just be smart about getting ready for it.
3 Reasons why your home is not selling
August 13th, 2010
In today’s BUYER’S MARKET homes are sitting on the market for record numbers of days. Even those everyone says will sell immediately are languishing. After 40 years of selling real estate in Grand Rapids, I believe there are only 3 reasons why a home does not sell. These reasons were valid in 1971 when I started in the business and are just as true today.
1. PRICE.
Top on the list is your price. The more properties on the market – the more competition you have for the buyers in the marketplace – and price is the only part of the equation many folks even look at. Buyers always want a “Deal.” This was true in 1971 and remains true today.
Everybody wants a bargain. In today’s marketplace, the media has hyped the foreclosures and short sales as to make everyone feel they are sure to get a bargain – so don’t be surprised if any offer you get is a “low ball” offer.
All areas and marketplaces are different so make sure you listen closely to a professional REALTOR who knows your marketplace – and price your home accordingly. If you are interviewing more than one agent – don’t necessarily go with the one who comes in with the highest price for you – go with the person who has the most experience in your neighborhood and knows the marketplace backwards and forward. Study the comparable homes and know the market – then price yourself below your competitors.
2. PROPERTY CONDITION
Houses, which are updated with the latest paint colors, countertops, and hardware and show great – will be the first homes to sell. Having dated wallpaper, woodwork, hardware and counter tops stop a buyers from either making an offer or offering a good price. Have your agent walk through your home to assist you in determining what you need to do to get it ready for the market. If you don’t have the money to update – think about offering a price below market or offering a decorating allowance so they can do the work themselves. Consider hiring a stager to have the place look like a “million bucks”
3. LOCATION
Our old school real estate mantra used to be “Location Location Location” – even though other things come into play in today’s marketplace – Location could be a key reason why your home is not selling. The good news for those of you who are in a good location is that it will be a real plus when selling.
For those of you who are next to a power line, a railroad track or under the flight path of your local airport – you will need to discount the comparable cost of your home to below others that are not affected by these challenges. You can always turn the tables and aggressively look for someone who shares a love for trains or planes and market directly to them – but keep in mind that re-sale is on the mind of every buyer out there today.
Check with us today if you need any real estate counseling on Price, Property Condition or Location…we’re happy to help.
Ranch Style Homes sell better than 2 Story Homes in the Grand Rapids Real Estate Marketplace
June 22nd, 2010
Statistics for the past year show 2714 ranch style homes (all on one floor) sold and only 1683 two story homes sold in the Grand Rapids Real Estate Market. (According to GRAR statistics between 100,000 – 400,000 in price). I am often asked which homes have the best resale and if you look at the stats for all homes sold in the Grand Rapids area – they look like this:
$100,000 – $400,000 Currently Listed on Entire MLS Sold in Past 12 Months in Entire MLS
Ranch Style Homes 2578 2714
Two Story Homes 1496 1683
Multi or Tri Level Homes 565 782
As you can see by the stats above the Ranch Homes sell by a greater margin than 2 story homes – and Multi or Tri Level Homes bring up the lower third of the market.
What is interesting about this is all real estate is local – each area and neighborhood has a unique breakdown of the style of home which sells the best and each price range has it’s own breakdown of styles which do best. Your Realtor will give you great advice about the area you are considering as far as what home styles sell the best – make sure you check with them if you are strictly buying for re-sale.
I am finding ranches are selling very well for the older crowd – and as the baby boomers age, I think we will be seeing more demand for the ranch style – mainly because everything is all on one floor and no steps are needed for either bedrooms or laundry facilities. Now, since I’m a baby boomer I will confess that I live in a ranch style home specifically for this reason.
Many of the two-story buyers I see are folks with young families who want the bedrooms upstairs. Multi and Tri Levels are higher in demand in areas where younger first time homebuyers are looking as they have great usage of all square footage and seem to be more contemporary.
The good news is there are plenty of home styles for anyone to choose from in this marketplace. As you saw from the stats above – there is almost a one year supply of homes on the market – so it’s a great time to buy. Give us a call if we can give you some advice on the marketplace in your neighborhood or help in finding that perfect home for you.
Dave Ramsey says “Use Us”
June 16th, 2010
Don’t sell your house yourself – Don’t be a FSBO - Don’t be fooled by the middle-of-the-night TV huckster – It’s a lot harder than you think. Dave Ramsey’s column gets a question we get all the time – “What are the advantages of using a real estate agent versus going the for-sale-by-owner route when it comes to selling a home?
Since I’ve been actively selling real estate here in Grand Rapids for about 40 years, I have answered this question thousands of times – but Dave does it so eloquently – plus he has a bigger audience than mine (so far)! Here are some of the highlights of his answer which have resounded steady for the past 40 years:
“…you will immediately have thousands of potential buyers.”
-when you have your home for sale “By Owner” your market is as large as a sign, an ad, and limited internet exposure will bring you. The MLS and an active agent bring you qualified (very important as it separates them from lookeyloos) buyers who have the motivation and means to buy right now.
“…they (real estate agents) know all the ins and outs of buying and selling a home, and they’ll walk you through every step of the process.”
All real estate is local and it is so important to work with someone who knows the customs in the area, is familiar with all the forms commonly used and can keep their client (either a buyer or a seller) out of legal trouble as they go through the ever complex real estate transaction.
“…you will cost yourself more than the agent’s commission by trying to sell it yourself.”
Amen – I’m really liking Dave Ramsey!! Often we as real estate agents make it look too easy – we don’t bother the client with little glitches, we just go ahead and solve the problems and bring the transaction to close. We have the knowledge and the experience to know when to fire up the cannons and when to low-key something that can be solved easily – and then we solve it before it becomes an issue.
Bottom Line – Use a Realtor when you are thinking of Selling or Buying Real Estate! Contact us for your personal real estate needs – with almost 40 years of real estate sales and being a native of Grand Rapids – We know GR and we know Real Estate !
Don’t be Homeless – Sell First – Buy Next.. It works!
May 28th, 2010
When a seller needs to sell their home before they can buy – which is most of the time – they are usually a little bit nervous. I assure them if they can’t find a house; they can move into our lower level until they do (that was before we got a dog – now they probably wouldn’t take us up on it).
Over the 40 years I have been selling real estate in GR, I have never had anyone even come close to moving in – but here are some hints to keep you from going crazy in the selling process.
1. Check out what is on the market first – but don’t fall in love yet
This is the time we research the marketplace – see what meets your wants and needs as you morph into becoming a buyer. Go see a few homes and make sure there are some which would be a good match for you. We keep this profile of homes and continue to send new listings to you – but don’t really want you to fall in love with a particular home yet.
Falling in love (in more than just real estate) can cause irrational behavior. You might be tempted to take less for your home than it’s worth because you have fallen in love with another home.
Once you know there are great homes available - we put your home on the market.
2. Price Your Home Right to Encourage Offers
This advice applies to anyone thinking of selling – so I will say this over and over – listen to your Realtor and price it correctly for the marketplace. Don’t even think of pricing your home based on anything other than today’s market – because you won’t be moving on to the home of your dreams.
3. Sell First
Unless you are independently wealthy and can afford double house payments…or don’t mind a few sleepless nights – you should always sell first and buy after you have a firm offer on your own home. A buyer who has sold their home and is “ready to buy” is like gold to current sellers. An offer “contingent on the sale of your home” won’t bring the same price as an offer free of that obligation. I’ll be talking more about “contingent on the sale of..” offers in a future post so stay tuned.
So don’t be afraid of selling your home first, finding your dream home after the sale and buying your new home for the best price - just work with a professional Realtor who can advise you along the way. We do this everyday and if we can be of any assistance in providing you with a good idea about the pricing of your home, timing on the marketplace and what you might find for your next move – make sure you contact us.
5 Things you should know about Closings…the main event in Real Estate
May 3rd, 2010
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.
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. Read the rest of this entry »
Get the Lead Out..New Law…Higher Prices???
April 25th, 2010
On “Earth Day” this year the EPA put into law a new Lead Based Paint Regulation. This affects disturbing any existing paint (so remodeling or scraping and painting rooms) on homes built before 1978.
I did a little research on just how many homes this affects in the Grand Rapids real estate market and found 4414 homes currently for sale which fit the description. From now on, any scraping and painting, new windows, remodeling…etc. on these 4414 homes must be done under compliance with this new law.
The Grand Rapids Press had a great article about it – read it here - which can help you understand it and how it might affect you if you own or are thinking of owning a property that is over 32 years old.
I have been surprised how many painters I have talked to who know nothing about this law – so make sure you ask your contractor if they have the RRP Certification. Check out the EPA’s website to get a little more information on both the law and the affects of lead paint on children – you can view it here.
It’s being said the cost of contracting for remodeling of any home built before 1978 might skyrocket due to the increased cost of certification. The cost for the contractors ($200 registration fee, $300 for classes, more expensive equipment, reporting and documentation) plus the fact there are very few trainers currently doing the training for certification, leaves many contractors in a bind.
As a Realtor I know this might slow down some closings, add extra costs to repairs and perhaps at a time when a seller is close to going under – might be the final blow to a possible sale. With every new law there is a learning curve and I hope this one is short and sweet for all involved.
5 Things you can do to sell your home in 30 days
April 25th, 2010
Hard to believe but there are 5 things you can do to get a quick sale now that the tax credits have expired:
1. Price it Right
Yes – Price is king today. There is still a lot of inventory on the market that is your competition. There are still repossessed homes and short sales hitting the market on a regular basis. You NEED to pay attention to Price!
2. Clean it Up: and still price it right
Buyers often judge your house on it’s cleanliness – not becuse they will keep it that clean – but the question always comes up “If the owners keep the things we can see in a messy state – what about routine maintenance and the things we can’t see?
I have seen buyers walk away from houses that are a mess – even if it is a perfect house for them – mainly because they couldn’t see past the clutter.
3. Trim up the yard – and make sure it’s priced right.
The first impression of any home is the walk to the front door – if you haven’t kept up on landscaping – grass is uncut – trimming not done – shrubs overgrown – you’ve lost that competitive edge of a great first impression. This is probably the most overlooked and the least expensive move someone can make in the sale of their home – but, don’t forget to price it right.
4. Light’s On for a showing – oh, and the PRICE!
Everyone is looking for that light, bright home that sparkles. Whenever you have a showing – day or night – make sure you turn on all the lights (and if you’ll be right back leave a note for the Realtor showing the property that they don’t need to turn them back off). If we can show a home without searching for all the light switches and lamp knobs – we can concentrate of selling your home.
5. Price Again – New Mantra in the Real Estate Industry “Price – Location – Price”
Make sure you and your Realtor have done all the homework to see where you fit in the marketplace and price your house accordingly. I know – but your house is “bigger than” “prettier than” “better than” all of the other houses in the market – but open up your minds to what your Realtor is telling you about the market – they are the professionals!
We do extensive research on prices and make recommendations for all our clients on price in the marketplace. If we can answer any questions for you as you decide if you want to sell or not – give us a call.
I’m also really interested in what you think ist he most important step in getting your house ready to sell – so comment back to me and we’ll compile a list of your suggestions!
March Madness
March 13th, 2010
March Madness
What on earth does tournament time in basketball and the “Spring Market” in real estate have in common? Here are 4 ways they go hand-in-hand:
1. Excitement
March madness in basketball has teams in a frenzy and fans going crazy. March madness in real estate has buyers coming out of the woodwork (like spring fever) excited to buy – this year excited to get a buyers tax credit – with their fans (family mostly) going crazy too. Read the rest of this entry »
Climbing up from the bottom…prices in the “new” normal
March 2nd, 2010
The old adage “Location, Location, Location” has been displaced in this new real estate market to “Price, Location, Price.”
After a few years or so of a market dragging at the bottom of the barrel here in Grand Rapids, MI- we are now seeing some signs of rebirth and life. Open house attendance is really high, showings are ramping up on listings, buyers are coming into the area, sellers are on the phone to agents asking if now would be a good time to put their homes on the market…signs are everywhere that a turnaround is at hand.
The question is…what are we turning around to? What is the “New Normal” that we will be seeing for the time being? Here is what I’m seeing as a Realtor in the marketplace:
- Sellers have been gun-shy about putting their homes on the market unless they absolutely have to sell. Two of my last three closings the sellers had to bring a substantial amount of money to close ($61,000 for one and $28,000 for another). They both were transfered and had jobs in another City so “had to sell.”
Because of all the media hype about what a bad market it is – for a while only sellers who “had to sell” put their homes on the market. It wasn’t until the buyers tax credit hit in conjunction with some positive spring indicators that a seller that wasn’t in trouble even bothered to think about selling.
None of the sellers that I am working with are surprised when I explain about prices in the marketplace – they all know they have gone down. That being said – I believe I am pricing my listings to the market right now – not to some old inflated idea of normal. This is a trend across the board.
Now – in comes a Buyer who is only hearing about foreclosures, short sales, deeply discounted prices and encouraged by some mis-guided ideas are still throwing low-ball offers at a seller who has taken the market into consideration when pricing their home already. Don’t get me wrong – we love to get offers – and sometimes they even get accepted and closed. But I think many buyers have the misconception in this marketplace that all houses are overpriced and no matter where a seller has priced their home – a major low-ball offer is in order.
Suggestion to Buyers: work with your agent to do a CMA on any home you are considering before you make that low offer.
Suggestion to Sellers: price to the market today – your Realtor can help you know where this is.
After all is said and done - the free market system will prevail. A house is still only worth what a buyer is willing to pay and a seller is willing to sell for. We have some artificial market pressures going on now with shortsales and foreclosures – but the New Normal will always balance out to Adam Smith’s Law of Supply and Demand.
