Real Estate Information Archive

Realtor Magazine just published the economic forecast for the 2015-2016 housing market and the numbers continue to trend upward. As the market continues to improve however, interest rates also are forecasted to rise. The forecast is predicting 2015 interest rates to average in around 4.9% and will continue to rise to 6% in 2016. If you're thinking of making a move, this is further proof that 2015 will be a great year to do so. While 6% is still a low interest rate historically speaking, you will have higher purchasing power in 2015 and that will continue to decrease as interest rates increase! Keep in mind that for every percentage point that interest rates rise your affordability drops by roughly $20,000! The forecast is outlined below:

A Great Article Posted Via Trulia.Com! Check it out!

http://www.trulia.com/blog/taranelson/2013/04/5_emotional_mistakes_sellers_make?ecampaign=cnews201304B&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2013%2F04%2F5_emotional_mistakes_sellers_make

New and existing homes in the Grand Rapids and surrounding areas are flying off of the shelves. Some homes selling before they even hit the market and others selling for more than the asking price. Reason…historically low interest rates, $0 down Rural Development loan options, 3.5% down FHA loan options, 5% down Conventional loan options with no mortgage insurance and the list goes on. You can now own for less than you rent an apartment for! First time home buyers are ecstatic with their payments, growing families are selling and moving up to bigger & better homes for the same payment as their old homes. It is an incredible time for all buyers, sellers, builders, real estate agents and loan officers in West Michigan. If you are on the fence, it is time to get off quickly before this window of opportunity passes you buy. I always say, you will never know we hit the bottom until we are on the way back up and at that point the opportunity may be gone.

Zac Ellerbroek

Loan Originator – Lake Michigan Credit Union / Knapps Corner

616-234-6864 – Direct

616-893-6024 – Cell

616-643-0783 – Secure Fax

NMLS# 138717

To Send Secure E-Mail Click Here

Earlier this week the National Grand Rapids Foreclosures Mitigation Counseling (NFMC) Program held a web-ex about the Loan Modification Scam Alert campaign. Due to the growing number of scams, Congress asked NeighborWorks America to launch a national public education program; the campaign empowers homeowners to protect themselves against loan modification scams, to find trusted help and to report illegal activity to authorities. Keep yourself informed and aware, visit this website to stay educated www.LoanScamAlert.org.

1. Don’t slack off on home maintenance. Houses in need of TLC often attract investors or property flippers, which are known for submitting low-ball offers. To attract offers and the highest bids, sellers should attend to any upkeep and maintenance issues before putting the house for sale.

2. Make sure the home isn’t being overshadowed outside. Nothing kills curb appeal more than a home you’re selling that you can’t even see. Be sure to trim trees or bushes to ensure they aren’t blocking any windows or the exterior of the home.

3. Remove wallpaper. Wallpaper and borders can be a nuisance to remove so you might want to take these personal decor touches down before you list the home. Neutralize the homes in subtle colors that will appeal to the most buyers and allow buyers to better visualize their personal decor moving in.

4. Don’t keep an empty home empty. Buyers can struggle in picturing themselves moving in if a home is left empty. Vacant homes can feel cold and rooms can look smaller than they really are. That’s why O’Ryan reminds us why builders spend thousands of dollars staging model homes. If your listing is vacant, consider staging it to bring in furniture and accessories to help define the various rooms functions.

By Melissa Dittmann Tracey, REALTOR Magazine

Many buyers are demanding perfection in home’s today.

A small stain on the carpet? Forget it. Distracting paint colors? They can’t look past it. No granite countertops? Onto the next house!

As home values drop, offering buyers some of the best bargains in years, more home buyers have realized they can get more choosy when home-shopping. And with inventories high in many areas, sellers realize their home needs to exude perfection if its going to stand out.

During the housing boom a few years ago, buyers were more willing to overlook flaws, or accept them, that is. They may have negotiated with the seller over repairs or upgrades, but some buyers were willing to even take the home “as-is” to win a bidding war or to get the home in the area they wanted.

Times have changed.

Even first-time buyers, who once were lured to the “starter home” (a.k.a. a fixer-upper), are getting choosier. A Coldwell Banker survey earlier this year found that 87 percent of first-time buyers say they want a “move-in” ready home over a fixer-upper–and they want it to be affordable too!

Buyers are “missing out on some excellent, older lived-in houses,” Holly Kirby Weatherwax, a real estate professional in Reston, Va., told the Toledo Blade. “It’s a shame, simply because they can’t overlook” flaws that wouldn’t have bothered most buyers in the previous two decades. Those flaws could be anything from minor imperfections like kitchen appliances by different manufacturers to the home’s color not matching the buyer’s furniture, Kirby notes.

“Anything that can be a distraction, you want to eliminate,” a Tennessee home seller noted in a recent news article. “A light bulb isn’t a big issue, but it can affect [buyers’] subconscious.”

So how did buyers get so picky anyway? Is it just the power of a buyer’s market? Some also blame the rising popularity of home design shows on TV for making buyers more selective when viewing homes. But in recent months, more home design TV programming is showing a slight shift to fixer-upper housing make-overs, showing how a home’s flaws can be overcome to still become a dream home. Will such TV shows eventually make more buyers give less-than-perfect homes a second chance?

Until then, before the for-sale sign goes up, more sellers are heeding the advice of their real estate agent to clean, paint, upgrade and stage to avoid lowball offers. Plus, with the huge glut of low-priced foreclosures, such finishing touches may help home owners rise above the competition.

By Melissa Dittmann Tracey, REALTOR® Magazine

Grand Rapids, Mich., made RelocateAmerica’s Top 10 list for its solid schools and strong economy, especially when compared with the rest of the state. “It’s got the best of everything in a smaller large city,” said Steve Nickerson, president of RelocateAmerica.

Read the full article by clicking the link below:

http://www.marketwatch.com/story/the-10-best-places-to-live-in-the-us-2011-08-02

There are homeowners that would like to have a larger/nicer home but are patiently waiting for the market to improve.  A frequently heard objection is that they can't sell their home for what it is currently worth.   

Buying up in a down market is actually advantageous because while you might get less for the home you're selling, you're also getting the larger home for less.  For instance, if you had to sell a $200,000 home for a 10% discount, you might feel that you left $20,000 on the table.  However, buying a $300,000 for the same 10% discount would put you $10,000 ahead on the sale and purchase.

The other obvious matter is that when the mortgage rates increase while you're waiting for the market to improve, it dramatically increases your cost of housing with higher payments.  The cost of housing is affected by price and mortgage rates.

To accurately evaluate your current options, you need facts and assessment tools that will provide you the information to make an informed decision. Contact me, Mark Brace, today to discuss your options. Whether buying or selling I am here to help make the process enjoyable and exciting! 

First 3 Paragraphs Taken from Pat Zaby's Blog

According to CNN Money, Grand Rapids ranks #9 out of the 10 most affordable housing markets. There is no better time to buy than NOW!

Via CNN Money.com talking about Grand Rapids:

In the late 19th and early 20th centuries, lumberjacks took down many square miles of Michigan's hardwood forests to feed the numerous furniture makers of this city in the center of the lower peninsular. There are some furniture makers left, but they tend to use metal rather than golden oak.

There's been a gentle slope to population growth over the post-war years; the metro area gained about 5% during the past decade.That means low demand for housing and the median price of about $80,000 in early 2011 is down about 10% from the boom years. A tidy three-bedroom home can be bought for less than $90,000.

Still, gardeners need  to make judgment calls. How much water does this shrub need? Will that tree get enough sun? Is this hole deep enough? It’s easy to misjudge and make a mess out of the landscaping. Here are common garden blunders.

1. Too many changes too soon. The excitement of warm spring weather often creates a passion for yard work. But what looks like a spring weed might be a fall-blooming vine. Encourage buyers to: Live with their land for a year and observe how many hours of sunlight each part of the garden gets. Test the pH of the soil to determine if acid- or alkaline-loving plants will be happy in that particular patch of heaven.

2. Too much togetherness. Trees and shrubs that look properly spaced when you plant them will crowd each other and compete for water, sun, and nutrients in a few years. Encourage buyers to: Read spacing instructions. Give trees plenty of space—they can always fill in later. Stagger bushes and plants and create two rows, which will create more breathing room. The results will look absurdly sparse at first. But live with it. In a few years, shrubs will fill empty spaces without suffocating each other.

3. Planting without a plan. Planting new garden beds without a long-term landscape plan is like pouring a house foundation without blueprints. Encourage buyers to: Draw a simple sketch of their yard—what’s there now and what they might add later, including patios and pools. Learn about the trees and shrubs that grow best in their soil and climate. A professional landscape designer can create a starter plan for as little as $250 to $500.

Taken from Realtor Mag