Gary White FlexIt Realty~Real Estate & Updates, Grand Rapids & West Michigan

We have a few piles of snow...forcast for out west still has snow....we may not see that...so.  The buyers are starting to come out again. 

Our winter has been a real winter this time.  Showings and travel were not always easy.  Several times this winter we had to adjust our showings as a result of weather conditions.  Living in a winter wonderland and adjustment go hand in hand.

Having homes ready to show with the walkways and driveways clear was not always possible.

Now we only see patches of snow on the ground, glimpses of sunshine from day to day and the buyers are venturing back out. 

Sellers are even becoming more confident that their homes will sell when they see more showings.

I was reminded during an open house today by a buyer...don't talk to loud about the ground being clear....  We have had some real blasts late in the year!  Today was a typical day in Michigan...no sun to speak of and crisp 40's...jacket required.  After the winter...I'll take it!

We are seeing showing on a regular basis that means two things, buyers are coming out and our marketing efforts are also attracting buyers...both is a happy sign for our clients.

Some of the other markets have seen a pick up in activities several weeks ago....regardless we are very happy.

Has your market started to return?

Click here to search the MLS for Active Listing in Grand Rapids and West Michigan  

Many agents will stop at nothing to get listings, improve their image at the expense of another agents....and who looks like the south side of a North bound donkey?

Our profession slides down every-time an agent thinks a slam or disparaging word is selling.  If the remarks are thought to diminish the other companies stature or image...we all lose with the remarks.  Our profession gets another slap to demonstrate why we are as perceived.  What the offending party is doing is violating one of the ethics standards and depending on the statement may even have crossed the line into liable and slander.

If the tactic gets the agent the listings or temporarily improves their position it won't last.  People who employ this tactic never really get ahead for longer than the time it takes for a counter attack by the offended party and then who wins?

If the offended party does not retaliate with an ethics complaint but instead goes about performing their job as a professional the only thing that is noticed is the bad actor of an agent who made the malicious statements in the first place.

Recently I had an executive from a competing real estate organization make some statements that should not have been made.  He specifically does not know me...he does not know my credentials, he does not even know my business ethics or policy.  Yet he decided to make remarks that could have cost him dearly with an ethics violation and a possible civil suit had any issues escalated.  Instead of addressing this situation down at the board or in the public venue with attorney's I decided to make one call to the employing broker.  If this did not resolve the issue...then the ethics complaint and attorney was my next immediate step...do not pass go do not collect $200.00!

So I had a pleasant conversation with the employing broker whom immediately understood the issues and vowed to resolve the matter immediately.  This may or may not work but the issue is simple.  If you feel a competitor is doing something wrong deal with it.  If the competitor is simply beating you at your own game...you can resent it...you can get mad or you can adjust and move on.....business is business.  I have hired several agents from this company to mine recently...I did not go after them...they cam to me.  This issue is simple...so what...agent move from company to company for a variety of reasons....but you can not make stupid remarks that diminish the other company for offering a better mouse trap...perceived or real makes no difference.

You usually do not get in trouble for doing your job correctly...representing your company and clients in a professional manner.  If you feel someone has made an error fine...take it up with your broker first...if that does not work you can deal with the local board which is what our code of ethics tells us to do...if it is a civil matter move to your nearest attorneys office and have at it!

Being professional will get you more personal marketing mileage, offer you better opportunities and create clients that appreciate you and offer a lasting source of referrals.

Don't let it go...but don't take excessive action without some thought.  I am not an attorney but I have a staff of them that work for me for over 10 years...they charge me and enjoy winning....so play by the rules or the guy with the gold will teach you a new game!  The golden rule...he with the most gold can win!  The most important issue is none of us win and our profession loses a bit more of it's professional images every time someone does this.

How do you handle these situations?

Today I discussed with a reporter the upcoming media spot dedicated to sensationalyzing the FSBO discount flat fee broker. 

I happen to have a combination company but not a discount company or flat fee company.  I own more websites dedicated to the FSBO seller than anyone in Michigan.  So the reporter wanted my spin....and spin was the right work.

The problem is there is no spin.  There is only the truth.  Some sellers are very well equiped to sell their own homes....most are not.  Some sellers understand the risks....most do not.  Most sellers have a misconception they are going to save thousands in commissions....most do not.

So why do people sell on their own?  They lure of potential savings.  If you are truthful with yourself answer these questions.

If you could save $10,000 dollars on your next car purchase, if you did a few things would that interest you?

Here is all you have to do.

1. Mount your own tires
2. Bolt in your own seats
3. put in your own floor carpets
4. screw in your own sunvisors
5. mount your glove box cover

You get the idea...most of these things we actually could do.  They may expose us to some liability but some of us might be willing to do it for the lure of a significant savings.  The reporter thinks he knows why people use For Sale By Owner programs.  The number one reason is the lure of commission savings.

Lure is the right word.  Most buyers expect a larger discount because the seller is not paying a commission...so the home should automatically be priced below one which uses a realtor.  The buyer never considers the advertising costs a seller has to spend to get the same market exposure as a "Realtor" brings when they promote a listing.  Advertising must be free....right!

On average buyers pay between 3-8% more for a home listed with a Realtor.  So like the reporter that is the commission that inflated the sell price!  Wrong!!!! the difference is a professional explaining the benefits and features of the home, property, neighborhood and schools so the buyer is willing to pay more for a better product that meets their needs.

Seller's over sell and create skepticism in the buyers mind concerning condition.  I have had proud seller's take me through their homes...."you'll love this, OH did you know we just painted and added a new toilet paper roll holder"!  Seller's are so anxious to get an offer from everyone that sees their home...so they over sell.

I love having the combination company...I display over 2000 listings across more than 18 major cities.  I have full time agents working on commission just like the traditional companies too.  They also share in the FSBO sign-up fee.  We know that the number of FSBO sellers is going to increase because of the economy but we also know they will convert to full service listings when they are unable or decide not to sell as a FSBO.

So does FSBO programs work...Yes for some people...certainly not the majority.  Why do people try it if it does not work for the majority?  The lure of commission savings.  The lack of understanding what a Realtor actually does, the media, banks, lenders, on-line listers the list is long but the bottom line the media has played this song so loud and long.  People are not looking at the real estate profession as the professionals we are at this point.  The public is looking at us as over paid for the services we render.  Just for the record our signs do not resemble these in the slightest. 

The first self serve gas station only had a few customers...but try and find a full service one now!  The lure was cheaper gas...where did that go?

I didn't mention the liability issues with disclosures, or contracts this is all things professionals know about and we point out...many companies that offer FSBO programs do not even have licensed agents...no need the For Sale By Owner client is not represented!  The other issue that is going to be addressed and has been already in some states is minimum service and no service companies.  The Broker that is after the quick buck and wipes his hands after placing a listing on the MLS for the For Sale By Owner.

So is there a spin to this story?  Yes...we are not going to eliminate the For Sale By Owner.  Will the FSBO be able to sell....yes in some cases.  Is the For Sale By Owner program something that everyone should try or want to try?  No, most will only waste their money.

So was I happy a reporter twisted the facts and a broker helped by not revealing the true story of the For Sale By Owner...no.  Will this help my business probably...but we explain the facts...take the time and help the potential client make the right decision for them...not just take their money and run. 

We are Realtors first...with ethics, morals and responsibilities to our clients and profession.  Can these programs co-exist...some say no...others say hell no!  But the truth is both are here to stay...so understand it.  Don't think twisting the facts in one direction or the other will make a difference.  The truth is for some people that make the decision with their eyes wide open and have the expertise to handle the process For Sale By Owner can work.  Yet the majority of sellers are not in that position and do not want to deal with or take the liability selling on their own requires.

We want sellers to sell that is the bottom line.  We want buyers to fine the right home at the right price.  We know that a home is only worth what a buyer is willing to pay for it!

I hope this gave you some food for thought.

Active Grand Rapids Area Listings click           FlexIt Realty Website 
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I was hearing people discussing the impact on the non-distressed homes on the market today.  One agent said his sellers are really feeling the pain with so many foreclosures and short sales.  The other agent said hasn't bothered my clients...

Somewhere in between is probably the reality...but then where are the majority of the foreclosed located?  Are they isolated in a certain price range?  What about the short sales are these happening in lower price ranges as well?

Here is something to review with your clients.  Look at the price range of the disclosures within a 4 or 5 mile area of their listing!  In many cases you are not even in the same price range or neighborhood when you drive that far...so how many homes are really in your clients comparison area?

Does a foreclosure property really compete for the same buyer?  I myself do not think they are the same buyers at all.  The foreclosure buyer is similar to the bargain hunter.  If he get a house that will work for his needs and it is within the price range hurrah...but if he can not get it for the price range...on they go to the next one.

Are the foreclosure buyers as concerned with schools, churches, shopping...or the other issues that a traditional buyer is considering?  The short sale buyer may be the traditional buyer...but they still consider the lack of maintenance and the properties general condition.  If the buyer is Mr. or Mrs handyman...they might try to go through the process of a lender selling th property for less but it is a process.

So do the foreclosures and short sales impact our traditional listings as much as we think they do or are we so focused on the media issues that bombard us everyday we just think they impact us.

Here is a little headline...homes sales up 2.6% for February....how many were traditional sales, new construction, foreclosures and short sales?

The information is not always as it is reported.  I know if I prepare my sellers and do my marketing I can justify my price to anyone....even the short sale buyer.  The property is not in need of excessive maintenance and we don't apologize that you can just move-in!

Food for thought....how are these issues affecting you and your seller's?

HUD announced on February 8th some new incentives for "owner occupied" properties being purchased as single family homes in Michigan and Ohio.

These incentives have a time frame. Please note they end September 30, 2008

THESE INCENTIVEs ARE:

***Effective February 21, 2008, there is a change to the sales incentives allowance which is now $2,500 for all owner-occupant purchasers (excluding HUD approved non-profit organizations and units of local government) in Michigan and Ohio regardless of financing type.  Please see below for details.

" Huge Sales Allowances!  All owner occupant purchasers (excluding HUD approved non-profit organizations and units of local government) will receive $2,500 at closing to use on repairs, closing costs, or to lower their mortgage amount without regard to the type of financing used by the purchaser."

So if you are thinking of purchasing a property at a lower price and are willing to do a bit of work...which most will need something....this is your chance.

We can help you place your bid on the property.  We can help you with key information so your bid is processed.  We can offer a free list of inspeciton companies to evaluate your selection so you are bidding with your eyes wide open when it comes to property condition.

Ask for your "Free" list of active HUD listings in Michigan.

This is the time to act is while the selection is still good and the incentives are available to lower your costs even further!

Click on our "LOGO" to go to our website for more information.   

Buyers wanted...preferably alive!  The old Steve McQueen program "Wanted Dead or Alive" emplifies how some sellers and seller agents are feeling these days.

Homes are selling.  If you do not think buyers are buying look at your local MLS statistics.  You can quickly identify where and for how much with a little research.  If you have a listing in an area where other homes are selling and your listing is not getting showings what does that tell you?

I have some seller meetings of my own scheduled for this week.  I am giving them the updates on the market and where their home sits within their market area.  They want to sell...I want them to sell....so now we have to help each other meet our mutual goals.

So Buyers Beware...sellers on the prowl offering great home purchase values, some have warranties too!  Buyers want to see properties that are priced right. 

One of my goals is to reward my sellers with a sale.  Builders and sellers are more open to negotiations now than they have been in years.  My buyers are anxious to buy...but they have to find the right property priced right for the market.

Sellers have to be more aggressive to get more showings.  With the number of homes that are on the market only the homes priced right for the market are going to get multiple offers.  All the other homes will be passed by..and will linger on the market...until the seller accepts or understands the conditions required to make their listing competitive.

None of this is a news flash to most of us....but I still see many homes that should have sold months ago...lingering on the market like a cloud of smoke on a still day.

We have to have common goals.  As sellers agents we have to educate and help our sellers understand the market...and defend a property that is priced right.  As a buyers agent we have to help our buyers get the best value possible and help them achieve their goal of purchasing.  Sometimes this means telling them the truth...the low offer could mean someone else will be living in that home you love.

Buyers Beware....there are some great deals out there with financing to match.  Call me or one of the local experts in your area if you are not represented so you get the best possible opportunity to find the home of your dreams.

Click here: search homes in the Grand Rapids Area

Here is a question everyone gets when they listing their home for sale right now.  Is this the right time?

Family, friends, neighbors, co-works all ask why are you selling in this market?  This same question was asked of me when I sold my home a few months ago in Florida.  The media has created a issue for every price range as though all homes sell for the same price...are in the same condition...located in the same spot!  They are not, you are not...and your homes are not the same.

No one is suggesting the market does not have issues but segments of the market has issues not the total market.  Does it impact homes in the total market from a sell stand point yes.  Every home no.

Here are a few issues to consider.

• You may have to sell for a lower price...in fact you will sell for lower than last year believe it!
• You can buy the home of your dreams for a lower price too....believe it!
• You will only be seeing people that really want to buy....believe it!  Credit has tightened so only real buyers are in the market.
• Can you expect some low-ball offer....YES....believe it!
• Can you expect to sell in a reasonable time.....Yes if marketed properly...believe It!

So why all the drama over selling in a down market?  Because people do not understand a buyers market.  If you are listing a home in the upper middle or High end of the range....you will have fewer buyers because there have always been fewer buyers in these ranges.

Where are the most buyers?  In the lower price ranges...that is were they always have been and always will be.  That is not a news flash but some people want you to believe other wise.  Remember the foreclosures and short sales...well those rarely affect the higher end listings not that people are immune to foreclosures and short sales but they usually have more resources so the percentages of short sales and foreclosures are in the lower price ranges.

So if you want to sell do it!  Do it with your eyes wide open...know what to expect.  Know what your final sell price range is probably going to be.  Here are the three probable prices to consider...Your list sell price, the offer price and the actual sell price.

So can you sell?  YES.  Can you buy another home which will be of similar discount to match what you had to do?  YES.  So if you do that when the market comes back will you increase in value to make up for the current market down turn?  YES, it always comes back...if you have purchased up your investment will go up exponentially.

So is this a great time to sell and buy?  This is a no BS post...rates are great...the home selections are as good as it is going to get and your opportunity to find exactly what you want at a great value could not be better.

The only thing you have to do....is do it!  I sold my home for less...and I bought for less.  Did the sellers get what they wanted?  They sold....did I get what I wanted?  I sold.  The truth is we can quibble over a few thousand dollars and calculate that out over 30 years and find it is only $500.00 a year!  Does that make sense when you can have what you want for $500.00 a year?

That's how I looked at it...I am in the business as a professional doing real estate full time...do you think I would do what is best and most profitable for me and my family?  I am just like you.  I pay a mortgage, I want a place to enjoy coming home too.

Find a professional that will give you some great advice, market your property sell it for top dollar and move on to a better life for you and your family.

I hope this has helped create some perspective in this crazy dramatized market.

Search Homes Here!

Have you lost a bite out of your chocolate Easter bunny? 

My grand kids think that after church the Easter Bunny will have slipped into the house and dropped off baskets for them.  We turned the tables this year, somewhtat.

We made them help us deliver Easter baskets.  Friday night my wife along with the grand kids put together Easter baskets for needy families.  Small little baskets for the kids and a grocery bag for the families Easter dinner. 

We worked on this for three weeks.  We called local churches and asked for names of the neediest families.  Once we explained what we were doing they had no problem providing us with names.  We then sat down with all the grand kids and put the names on a sheet with what little information we had.  We then discussed which families we felt we could make the best Easter for with our gifts.

This became a very serious thing for the kids.  They talked even argued on behalf of people they didn't know!  So yesterday was our delivery day.  We could only help 50 families this year.  It took us all day to deliver our packages and bags of groceries.

Each family received a 10 lb ham, 5 lbs. of potato's, jar gravy (low fat) canned corn, rolls, cranberry sauce.

The kids each received a small Easter basket with a chocolate bunny, jelly beans, marshmallow eggs and a big smile from the grand kids as they were being handed the basket.

Some people cried, some people hugged us...some didn't know what to say....others offered us to join them on Easter.  It was one of our best Easter's as a family...we are talking of doing it every year!

The best part is my grand kids learned a real lesson....people are people no matter where or how they live.   

This morning they are still talking about the experience as they opened their own Easter baskets.

Happy Easter Everyone. 

Friday could not have come soon enough for me this week. 

I love Easter for all the right reasons, and I get to see family too!

I am sure my clients are feeling the same way.   Good Friday, Easter and them family, what a weekend coming up.   We had some nice weather for a change...but as I look out the window...it is snowing like crazy and accumulating!  Yuck!

So how is the mayhem and maybes in your world?

Clients are clinging to any little positive comment...sellers are concerned about the economy and the market conditions are volatile.  But the truth is homes are selling, showings are happening and the good agents are working and moving along.

Good agents understand the requirements.  This market is not like the others we have seen.  In-fact it is a real test of marketing skills and understanding.  Those that make the adjustments and help clients understand the adjustments required to meet client goals are going to do just fine for both the client and themselves.

We are seeing agents writing offers that would never be written in other markets...but this isn't another market.  I hear agents say they are so mad at the offer they received because they have to explain this low-ball insulting offer. 

lets just stop right here!  Nobody said the seller had to take the offer or would even consider the offer...so why should we get all fired up and agitate our clients in the process?  We look at the offer as an opportunity.  A place to start.  I don't care that it is low...if your don't get an offer do you have a starting point?  If you don't get an offer do you have anything to discuss with your client?

I learned a long time ago that patience and analyzing the offer could help both your client and the seller meet someplace neither thought they would go!  So work out the strategy of the offer.  Look for silver linings, find options to improved your sellers position...after all it is a give and take issue...that is why they call it negotiating.  Sellers have to be helped to understand aspects of an offer that could benefit them.

Sellers have to be given a strategy to meet their goals without losing the buyer or dashing the buyer dreams and goals at the same time.  Yes this is challenging and I can not think of anything better to do than get an offer and get the ball rolling for my client.

So I smile at low-ball offers.  I find that many times the agent representing the buyer does not know how to explain the value of the property they are bidding on....so the buyer looks at the offer and property like any other HUD home or foreclosure without giving any thought to the real value.

True, some buyers are only bargain hunters...but they are quickly discovered.  Investors do not usually go after regular listings.  So yes you have your work cut out for you...who told you this was easy?  If your world is like mine it is full of mayhem and maybes!

If I am lucky I even get a low-ball offer.  How do you handle your offers?

Are you discouraged with selling your home in this market.  The truth is selling in any market can be a real test of one's ability to adjust.

Selling is rated very high on the stress list.  It is no wonder people selling on their own are nervous wrecks!  They must make sure they price their home competitively with others in the market place.  They must make sure the home is in show ready condition and set appointments for each showing without knowing if the person they are showing their home to is even qualified to purchase.

Selling in this market also requires a thick skin.  So many people have taken the media spin in such a literal fashion that every home must be a foreclosure or short sales in the Grand Rapids metro area so the low bids just keep coming in...without regard to the actual home location, condition or price.

Here are some issues that may help you understand the market, showings, when your home will sell and many more issues.

This market is unique in we haven't seen one like this...even in the 80's when interest rates hit 18% the market was not like this one.  Michigan also has it's own set of lending and borrowing issues to contend with that impacts your selling process.

Foreclosures impact selling a non-distressed property.  Short sales also impact your sale.  One of the considerations in selling is your home being compared to a property that is "distress"?  What does that really mean?  Distressed means the seller is in a financial position where taking a lower price is better than losing it all!  So they sell the home for what they can get.  Lender owned homes are just like short sales in one regard.  The lender is getting homes back through the foreclosure process in record numbers.  So they can only keep themselves solvent if they sell them....so a bargain price is offered to do just that. 

Buyers may or may not consider that the home has been neglected.  The basic repairs and maintenance have most likely NOT been done.  This increases the cost of the home to get it back in shape.  Most/all bank or lender owned properties are "AS IS" sales too.  This means the buyer will not have any recourse...what you see is what you get.  We a normal property the disclosures offer a buyer a better picture of the condition and history of the property. 

Short sales are similar with the exception most have disclosures...but the lender has to take less than owed on the property.  Unless there is a very good reason to do this with a reasonable offer...which means reasonable to the lender not the buyer, the lender may or may not accept the short sale.

We are seeing many foreclosure and short sale homes where more than one bid is being placed and the lender is just waiting and does not respond to offers until they get one they like.  So because a buyer submits a bid does not mean a lender will not take an offer that was submitted later!

So selling your home that is not distressed by a foreclosure or short sale means you have to price your home correctly.  I did not say you have to under value or under price your home.  You have to price your home according to the market.  You have to have your home in great condition and show ready. 

Another key is having financing ready for a buyer who does not understand or have a lender relationship.  It takes longer to sell in this market but you can certainly sell.  You need some very key issues to happen to market your home to get top dollar.

I hope this has helped you understand more about the market.

You can go to our company website www.FlexItRealty.com to download over 28 "Free Reports" that could save you thousands of dollars in your next real estate transaction.

If you are thinking of selling or are not represented and would like to discuss your real estate needs contact me directly for a personal and confidential meeting.

Gary White, Broker
garywhite@grar.com
Gary White 1515 Michigan St. NE, Grand Rapids, Michigan 49503