Grand Rapids MI real estate listings and homes for sale, home buying, home selling information – Kevin Walters - Five Star Midwest

Kevin's Real Estate Blog

Negotiating the Sales Contract

January 22nd, 2008 10:39 AM

Preparing your home and marketing your home are only half of the complete selling process. Negotiating the sales contract (purchase agreement) every bit as important. Once you have found a buyer who is interested enough in your home to make an offer, you need to ensure that your interests are protected in the purchase agreement.

At this critical stage it is imperative that you fully understand your personal reasons and motivation for selling the home. For example, you may be more motivated to sell and willing to accept a lower price and concessions if you are moving due to a job transfer or job loss. However, if you are simply selling so that you can use your current equity as a down payment on your dream home, you may be less likely to deviate from your asking price.

When dealing with an offer from a prospective buyer, make sure that every detail is in writing. Once the offer has been submitted, you have three possible choices: 1) Accept the offer as written; 2) Reject the offer outright; 3) Propose a counteroffer. The following is a list of points to consider when reviewing an offer.

Price
Earnest money deposit
Buyer financing: Do they have an approval letter from a lender? How much is their down payment? What interest rate are they seeking?
Closing and possession dates
Prorations for taxes/association dues/etc.
Closing costs: Who will be paying? Are the costs split between buyer & seller?
Home Warranty/Home Protection Plan: Who is paying for it? What company is supplying it?
Inspections: What inspections will done and by whom?
Fixtures/Improvements: What items are included in the sale (appliances, etc.)?
What title company and/or attorney will handle the closing?
What contingencies are involved? (i.e. the sale of another home, financing, etc.)

Posted by Kevin Walters on January 22nd, 2008 10:39 AMPost a Comment (0)

When a showing appointment is made...

January 9th, 2008 9:53 AM

When you put your house up for sale, both agents and individuals will want to view your home. The following is a listed of suggested ideas to help increase the chances for a successful showing:

1) Open all draperies and window shades during daylight hours.
2) Turn on all lights and replace bulbs with high wattage bulbs where needed.
3) Open windows one-half house before showing to circulate fresh air.
4) Open all the doors between rooms to give an inviting feeling.
5) Place fresh flowers on kitchen table and/or in the living room.
6) If possible, bake cookies or bread to add an inviting aroma.
7) The kitchen and bathrooms should be sparkling clean.
8) Pets should be confined or restricted from view. Be sure to eliminate pet odors. Not everyone may share your love of animals and some people may even be allergic to them.
9) All jewelry and small valuables should be stored in a safety location.
10) Replace any items not included in the sale, or tag them appropriately with “to be replaced with…” or “not included” signs.
10) Beds should be made and clothes picked up. Bathrooms should be clean with towels folded and the toilet lid down.
11) When you leave the house, leave it as if you know it is going to be shown. You never know when the right person is going to look at it!
12) Make sure your property profile folder, utility bills, house locations survey, etc. are available.
13) Add some strategically placed fresh flowers
14) Turn off the television and turn on the relaxing music at a low volume
15) Make a fire in the fireplace if appropriate

Posted by Kevin Walters on January 9th, 2008 9:53 AMPost a Comment (0)

Marketing Your Home in Grand Rapids

December 10th, 2007 3:47 PM

Before Officially Putting the Property on the Market
1) Property preparations: See detailed description in previous blog post.

2) Take property/home photos: Be sure to take both exterior and interior photos for websites, brochures and newspaper/television ads. For exterior pictures make sure the sun is at your back (preferably in the morning or late afternoon but not when the sun is directly overhead). For interior photos be sure to remove clutter, turn on all lights and use a flash when.

3) Prepare property flyer/brochure: Many computer programs (Microsoft Word, Publisher, Adobe PhotoShop, etc.) have this capability. Additionally, your local office supply or copy store should also be able to help. Be sure to use high quality paper.

4) Order preliminary title work: Contact a local title insurance company to get started and find out what services they offer.

5) Obtain paperwork (purchase agreements, disclosures, etc.): State- and local are specific purchase agreements and disclosures are often available online or in office supply stores. Additionally, you can sometimes obtain the necessary paperwork for free from a local attorney or Realtor®.

First Week on the Market
1) Put up “For Sale” sign: Hardware stores usually have a good selection. Local real estate boards also often sell “For Sale” signs.

2) Run an advertisement: The local newspapers, internet and television channel’s are all good places for a first ad. Additionally, some real estate brokers will allow individual property owners to pay a flat fee to get their property listed on the local MLS.

Second Week on the Market

1) Mail postcards to neighbors: This will help get the word out about your home and possibly bring a buyer if one of your neighbors knows of someone who might want to move to the neighborhood.

2)Schedule an open house for an upcoming weekend: Be sure to advertise the open house with both a newspaper ad and a yard sign.

Ongoing
1) Show property to prospective buyers
2) Review price and marketing strategy based on buyer input and market conditions

Posted by Kevin Walters on December 10th, 2007 3:47 PMPost a Comment (0)

Preparing your home for the market

November 30th, 2007 3:32 PM

Your home has just one chance to make a great impression with each potential buyer. The following “tricks of the trade” will help you keep track of what needs to be done. The whole idea is to present a clean, spacious clutter-free home – the kind of place you would like to buy! Accomplish a little everyday and before long your home will be ready to make the impression that can make the sale.

To help your home’s curb appeal…

Mow the lawn
Trim the shrubs
Edge gardens and walkways
Weed and mulch
Sweep walkways and driveway, remove branches, litter or toys
Add color and fill in bare spots with plantings
Remove mildew or moss from walls or walks with bleach and water or other cleaner
Take stains off your driveway with cleanser or kitty litter
Stack woodpile neatly
Clean and repair patio and deck area
Remove any outdoor furniture which is not in good repair
Make sure pool or spa sparkles
Replace old storm doors
Check for flat fitting roof shingles
Repair broken windows and shutters, replace torn screens, make sure frames and seams have good caulking
Hose off exterior wood and trim, replace damaged bricks or wood
Touch up exterior paint, repair gutters and eaves
Clean and remove rust from any window air conditioners
Paint the front door and mailbox
Add a new front door mat and consider seasonal door decorations
Shine brass hardware on front door, outside lighting fixtures, etc.
Make sure doorbell is in good working order

General Interior Tips…

· Add fresh coat of interior paint in light, neutral colors

· Shampoo carpeting, replace if necessary

· Clean & wax hardwood floors

· Clean & wash kitchen & bathroom floors

· Wash all windows, vacuum blinds, wash window sills

· Clean fireplace

· Clean out & organize closets, add extra space by packing clothes and items you won’t need again until after you’ve moved

· Remove extra furniture, worn rugs, and items you don’t use: keep papers, toys, etc. picked up.

· Repair problems such as loose door knobs, cracked molding, leaking taps and toilets, squeaky doors, closets or screen doors which are off their tracks

· Add dishes of potpourri or drop of vanilla or bath oil on light bulbs for scent

· Secure jewelry, cash and other valuables

In The Living Room…

· Make it cozy & inviting, discard chipped or worn furniture and frayed or worn rugs

In The Dining Room…

· Set the table for a formal dinner

In The Kitchen…

· Make sure appliances are spotless inside and out (try baking soda for cleaning Formica stains)

· Make sure all appliances are in perfect working order

· Clean often forgotten spots on top of refrigerator and under sink

· Wax or sponge floor to a brilliant shine, clean baseboards

· De-clutter all counter space, remove countertop appliances

· Organize items inside cabinets, pre-pack anything you won’t be using before you move

In The Bathrooms…

· Remove all rust and mildew

· Make sure tile, fixtures, shower doors, etc. are immaculate and shining

· Make sure all fixtures are in good repair

· Replace loose caulking or grout

· Make sure lighting is bright but soft

In The Master Bedroom…

· Organize furnishings to create a spacious look with well-defined sitting, sleeping and dressing areas

In The Garage…

· Sell, give away or throw out unnecessary items

· Clean oily cement floors

· Provide strong overhead light

· Tidy storage or work areas

In The Basement…

· Sell, give away or throw out unnecessary items

· Organize and create more floor space by hanging tools and placing items on shelves

· Clean water heater and drain sediment

· Change furnace filter

· Make inspection access easy

· Clean & paint concrete floors & walls

· Provide strong overhead lighting

Posted by Kevin Walters on November 30th, 2007 3:32 PMPost a Comment (0)

Determining Your Costs and Profits

November 25th, 2007 2:53 PM

The following is partial list of costs that may be associated with the sale of your home. Once you have calculated your total costs, simply subtract that number from your sale price to determine your profit (or loss).

1st Mortgage
2nd Mortgage (Home Equity Loan)
Title Insurance
Closing Fee
Legal/Attorney Fees
Home Warranty Policy
Inspection Fees (Termite, Structural, Radon, etc.)
Document Preparation Fees
Appraisal Fee
Recording Fee
Property Taxes (Prorations, etc.)
Local Transfer Taxes
Local Revenue Stamps
Advertising/Marketing Fees

If you need more detail or would like average figures for each of the above categories, please contact me at Kevin@grapidshomes.com.

Posted by Kevin Walters on November 25th, 2007 2:53 PMPost a Comment (0)

Creating a Property Profile

November 16th, 2007 8:26 AM

Creating a Property Profile
The following features will aid in identifying properties that are comparable to yours for proper price determination. As you read through the list, write down the specifics about your home. Many of the features listed below are the subject of commonly asked questions by prospective buyers.

-Assessed Value
-Year Built
-Design Style (Ranch, 2-Story, etc.)
-Number of Bedrooms
-Heating Source (Gas Forced Air, Radiant, etc.)
-School District
-Total Square Footage (Above Grade + Finished Below Grade)
-Number of Bathrooms (Full + Half)
-Air Conditioning (Yes or No?)
-Fireplace (Yes or No?)
-Garage (Number of stalls, attached or not)
-Basement (Full? Finished?)
-Other Rooms (Rec. Room/Dining Room, etc.)
-Pool (Yes or No?)
-Acreage/Lot Size
-Water (City or Well?)
-Sewer/SepticOut Buildings
-Creating a Property Profile

After you've created your property profile, try to incorporate most of the data into a brochure or flyer about your property. The flyer can be posted in a box in your front yard and also handed out to interested prospects.

Posted by Kevin Walters on November 16th, 2007 8:26 AMPost a Comment (0)

The Importance of Intelligent Pricing

November 12th, 2007 6:23 PM

Determining the best asking price for a home can be one of the most challenging aspects of selling a home. It is also one of the most important. If your home is listed at a price that is above market value, you will miss out on prospective buyers who would otherwise be prime candidates to purchase your home. If you list at a price that is below market value, you will ultimately sell for a price that is not the optimum value for your home and risk “leaving money (profit) on the table”. More buyers purchase their properties at market value than above market value. The percentage increases as the price falls even further below market value. Therefore, by pricing your property at market value, you expose it to a much greater percentage of prospective buyers. Thus increasing your chances for a sale while ensuring a final sale price that properly reflects the market of your home.

Another critical factor to keep in mind when pricing your home is timing. A property attracts the most attention, excitement and interest from the real estate community and potential buyers when it is first listed on the market. Improper pricing at the initial stages of trying to sell your home misses out on this peak interest period and may result in your property languishing on the market. Eventually, this may lead to a below market value sale price or even worse, no sale at all. Therefore, your home has the highest chances for a successful and profitable sale when it is new on the market and the price is reasonably established.

Posted by Kevin Walters on November 12th, 2007 6:23 PMPost a Comment (0)

Pricing Your Home

November 6th, 2007 1:56 PM

A comparative market analysis (CMA) is essential to determine the value of residential property. Location and characteristics of the property are the key elements in determining value; therefore the basis for valuation is similar properties in your area. The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of comparable properties currently on the market. The desired end result is to find a price that will attract a willing and able buyer in a reasonable time.

There are essential three categories of comparable homes that you should use to help determine the value of your home. The first category is comparable homes that are currently on the market (i.e. available to purchase). This category represents the competition for your home. There are likely several homes in this category that potential buyers will cross-shop while they are considering your home.

The second category of comparable homes to consider is homes that have recently sold (i.e. within the last year). This category represents what buyers were (and hopefully still are) willing to pay for a home that is comparable to yours.

The third category of comparable homes to consider in your CMA is homes that were for sale but did NOT sell. Real estate agents often refer to these homes as “expired listings”. More often than not, homes that do not sell are overpriced. Therefore, this category represents what buyers were NOT willing to pay for a home comparable to yours.

Once the value of your home has been determined, you can decide on an offering price that will achieve your goals. Generally, the price should not exceed the value by more than 5% or potential buyers may not even make offers. Naturally, if you want to sell quickly your asking price should be very near the value.

The following are a few things to keep in mind about pricing:

Realistic pricing will achieve maximum price in a reasonable time.
You cost or profit desire is irrelevant; the market determines price.
The costs of improvements are almost always more than the added value.
Houses that remain on the market for a long time do not get shown.
A house that is priced right from the beginning achieves the highest proceeds.

Posted by Kevin Walters on November 6th, 2007 1:56 PMPost a Comment (0)

Learning the Grand Rapids Real Estate Market

October 29th, 2007 2:41 PM

Understanding the current state of the Grand Rapids real estate market is critical to the successful sale of your home. Selling a home often involves trade-offs. The trade-offs revolve around two key issues: 1) How quickly you need to sell your home; and 2) How much money you need to profit from the sale of your home. The local real estate market conditions will help you determine what is realistic to expect for both issues.

If you need to sell your home quickly (faster than the average “days on the market”), you may need to price it below most comparable homes in your area. The trade-off in this scenario would be that you may not make the maximum profit on your sale. Conversely, if you are not pressed for time you may be able to price your home on the higher end of comparable properties in your area. The trade-off in this case is that it may take more days on the market to sell your home.

Real estate markets work on the general financial principle of supply and demand. When there are relatively few homes on the market and there many eager buyers, the market is termed a “seller’s market”. When there relatively few buyers and several months’ worth of inventory (houses for sale), the market is termed a “buyer’s market”. Remember, regardless of whether your local market is a seller’s market or buyer’s market, you will likely get the benefits of each if you sell your home and then decide to buy another in the same market.

To learn about the Grand Rapids real estate market, check our local real estate Multiple Listing Service (GRAR: http://www.grar.com) for the lastest statistics for comparable homes. If you are unfamiliar with how this is done, feel free to contact me (Kevin@grapidshomes.com) and I'll do all I can to help. Ideally it would be useful to know the average days on the market, average sales price and number of other homes on the market that are comparable to yours.

For more information on our local market, stay tuned for the next post regarding "Comparative Market Analysis".

Posted by Kevin Walters on October 29th, 2007 2:41 PMPost a Comment (0)

Grand Rapids Real Estate Market - Blog Overview

October 26th, 2007 3:08 PM

The purpose of this blog is to keep readers informed of issues relevant to the Grand Rapids, Michigan real estate market. The blog is authored by Kevin Walters, Realtor with Five Star Midwest Realty.

Posted by Kevin Walters on October 26th, 2007 3:08 PMPost a Comment (0)