Interest rates may be going up, but do you know where they were 10 or 20 years ago? As you’ll see, the low rates of today are a rarity and worth taking advantage of. Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation Our market right now is defined by two factors: housing supply and interest rates. I’ve got two charts to share with you that demonstrate exactly where our market is when it comes to affordability. The first chart shows historical rates from Freddie Mac for 30-year fixed rate mortgages. The big takeaway here is that today’s interest rates are still 3.5% lower than the 30-year average. A lot of first-time homebuyers aren’t aware of this. Knowing that rates are up to 4% doesn’t sound that great when you don’t understand the context. For example, if you look back to 1987, you’ll see that rates were over 10%. At the same time, this is the fourth best year for interest rates in the last 30 years, even if the rates are up slightly from last year.Historically speaking, rates are rarely this low. If you’re trying to save up for a down payment, look at what a 1% interest rate hike would do to your payment to see if it might be a better idea for you to just buy now with rates where they are and a lower down payment. If home prices are going up by an average of $10,000 to $15,000 every year, is saving up $15,000 really worth it? The second graphic is similar to the first but shows interest rate changes over the last 200 years instead of the last 30. When you look at this chart, it’s crazy to see that rates were at 16% in 1980. This is just another example that shows how good we have it with our current interest rates. Even with low inventory, there are still plenty of homes on the market available for purchase. Hopefully you’ve found this information helpful. If you have any questions in the meantime about buying or selling a home, don’t hesitate to give me a call or send me an email. I would love to hear from you soon. Chart 1: 30 fixed rate mortgages Chart 2: 200 years of interest rates

Spring is in the air, and a lot of sellers are asking what they need to do to get their homes prepared for the market. Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation There are many things you can do to get your home ready for sale, but curb appeal has the greatest impact on how buyers feel. With that in mind, here are the top four things you can do to wow a buyer through landscaping:These tips will help your home appeal to buyers’ emotions.1. Cut the grass. When buyers first pull up to your house, they’re making judgments, and you only get one chance at a first impression. Cut the grass at least once a week and make sure it’s green.  2. Install outdoor lighting. This way you can illuminate the house at night and accent certain parts of the yard. If a buyer can’t see your home during the day, it’s a cool thing for them to be able to pull up and see all those landscaping lights. This is a low-cost, high-return investment. To get an idea of what installation setup would work for you, there are many online resources you can reference or companies you can contact.  3. Plant flowers to add color. Believe it or not, too much green in your landscape is not good. Planting flowers to add a splash of color is a good way to appeal to buyers’ emotions. 4. Clean the siding, the porch, and the front door. Enclosed porches tend to have a lot of cobwebs, dirt, and debris cluttering around, and that can make a bad impression on buyers. Cracks in your driveway are a prime area for weeds to sprout from, which doesn’t look good either. Make sure these areas are swept, cleaned, and cleared.  We’re in a seller’s market, but if you want to maximize the price of your home sale, you still have to be responsible about selling your home. These tips can earn you an extra couple thousand dollars on your final sale price.  If you have any questions or are thinking about selling your home, please don’t hesitate to give us a call or shoot us an email. We look forward to talking to you soon! 

Grand Rapids is making headlines because of our low inventory. I’ll go over how our low supply of homes is affecting our market today.  Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation The housing shortage in Grand Rapids is making headlines! A recent article in Grand Rapids Business Journal says Grand Rapids is number three in its list of the 10 U.S. cities with the biggest housing shortages. Today I want to talk a little bit about what that means for our market.  Right now there are 1,426 homes on the market compared to around 10,000 homes on the market at this time in 2008. Demand is crazy in Grand Rapids.Buyers and sellers still have plenty of options to get a great home. In fact, there are people who want to move into a new house and sell their current home, but they are scared they won’t be able to find a new home because of the low inventory and increased competition. Situations like those are definitely when an agent or team who has access to off-market listings will come in handy.  The best teams in any area are going to have a list of off-market properties, so you can feel confident listing your current home or buying your first home if you choose to work with one of those teams or agents. I recommend selling your home now and putting yourself in a situation to buy in the next 60 days when inventory increases in the spring as well.  As far as buyers go, there are a ton of options out there and the spring market will bring an influx of inventory to choose from.  If you have any questions about this topic or any other real estate related questions, please feel free to give me a call or send me an email. I look forward to hearing from you! Click here to view the full article from Grand Rapids Business Journal: Grand Rapids 'housing shortage' ranks No. 3 in US Listen to my radio interview on Wood Radio 1300:

I recently came across an article about the value of working with an agent who has a veteran level of experience. I think you'll be surprised to hear how much more money that can make you. Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation I recently came across an article in The Wall Street Journal from a couple years ago that I wanted to address today called "The Price of Real Estate Experience: $25,000." A professor of finance was intrigued by this topic, so he took a 10,000-home sampling over a 10-year span and researched real estate sales. He broke the sale into three categories; homes sold by rookie agents with two years of experience or less, homes sold by agents with two to 10 years of experience, and homes sold by real estate veterans with more than 10 years of experience.  He found that the veterans sold homes for an average of 12% more money than rookie agents. In our market with an average sale price of $175,000, that equates to about $20,000 more in your pocket by hiring a veteran agent.  The more experience you have, the more insight you have. You also will have the finances and the skills to market better, because you've seen it all. Having seen almost every possible version of a real estate transaction is invaluable experience that means more money for a seller. The funds to market properties appropriately comes with a breadth of knowledge and experience to allow an agent to do it over and over and turn their skills into mastery. In our market, working with a veteran agent could net you an extra $20,000. The study also found that two-thirds of the listings were sold by veteran agents, while the rookie agents only sold half of their listings. A lot of the listings from rookie agents were expiring. Another benefit to working with a veteran agent is their knowledge of neighborhoods and a larger network of buyers.  If you knew for a fact that your ability to get the most money for your home hinged on hiring an agent or team, would you place more value on that, or on appeasing a friend who just got their real estate license? I ask because we see it all too often. Our market has attracted so many agents because the barrier to entry is so low; you can get a license for $100. This leads to many agents making transactions without much experience in marketing or negotiation. Hopefully you found this information helpful! If you have any questions about buying or selling homes in the Grand Rapids market, give me a call or send me an email. I'd be happy to help you.

There are three main reasons why homes fail to sell, and the third one may surprise you.  Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation Why do homes not sell? There are three main reasons why, and one of those will likely shock you.  Many listings are expiring. An expired listing is a listing that an agent put on the market but failed to sell. Many home sellers blame the agent and believe getting a new one will solve the problem, but that isn't always true. The number one reason why homes don’t sell is they aren’t priced properly. In 2016, the average sales price was only 91% of the listing price, which means that most homes sold at a discounted price. In fact, 50% of the time in 2016, homes went through two price reductions before they sold. That means that the home was priced incorrectly, forcing the seller to accept a reduced price. If it had been priced right from the beginning, the seller could have sold faster, gotten more money, and even drawn multiple offers.  Improper pricing also causes the home to be in a different price bracket than it should be. If you overprice your home, you will be at the bottom of a more expensive price bracket, and your home won’t look as impressive as the competition. Get the pricing right up front so your home doesn’t just sit on the market.  Poor marketing combined with incorrect pricing is a recipe for failure. Most expired listings fail to sell because the pricing was wrong and the agent didn’t do a solid job articulating the benefits of the property, using technology to accentuate those benefits, and sending your listing out into the marketplace in a way that would compel the buyer to take action. Negative experiences can follow home sellers and impact the sale. One of the most important factors when selling your home is placement. If you are in the wrong price range, then you are not priced for success. If your home is not marketed well in a competitive market, buyers will not notice your home. A real estate agent who can guide you through the pricing process and has the marketing to back it up will get you a successful home sale.  Finally, many sellers in the expired listing category tend to get in their own way. Why? They have hired an agent before and had a negative experience. They start to believe that all real estate agents are the same. Negative experiences can follow home sellers. Even if a new agent gets a lot of new showings and activity for the home, a seller might rebel against the new opportunities. They may even start to say negative things about the buyers or the home itself. This is a real challenge. However, it is always important to remain positive. In Norman Vincent Peale’s book, The Power of Positive Thinking, he says, “If you expect the best, you are given some strange kind of power to create conditions that produce the desired results.”  In other words, if you expect the worst, your home will fail to sell. Expectations and intentions are important to the home selling process. Figure out what you want, keep the negative emotions at bay, and hire the right agent to sell your home. Don’t self-sabotage the deal, let your agent get you to the closing table. If you have any other questions about expired listings or the home selling process, give us a call or send us an email. We would be happy to help you!

In a real estate transaction, the listing agent works exclusively for the seller, while the buyer’s agent works exclusively for the buyer.    Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation. What’s the difference between a listing agent and a buyer’s agent?  They each have unique roles in how they help their respective clients. For the full legal explanation, I’ll quote the definition of each position from the Disclosure Regarding Real Estate Agency Relationships.  The listing agent: “A seller’s agent, under the listing agreement with the seller, acts solely on behalf of the seller. Seller’s agents will disclose to the seller known information about the buyer which may be used to benefit the seller.” This means is that the seller’s agent is bound by a contract in the form of a listing agreement, and they are to get the seller the best terms. The have a fiduciary obligation to find out anything they can about the buyer that would benefit the seller. It’s a common misconception that the listing agent also works for the buyer. While there is such a thing as a dual agent, a listing agent works for one side and one side only. If you’re a buyer, the agent with a sign in the yard is working for the seller. The buyer’s agent: “A buyer’s agent, under a buyer’s agency agreement, acts solely on behalf of the buyer. Buyer’s agents will disclose to the buyer known information about the seller which may be used to benefit the buyer.” As you can see, this is the complete opposite of the listing agent. If you’re a buyer, the buyer’s agent will help negotiate the contract with you, help you set up showings, and guide you through the closing steps once you have an accepted offer. Buying a home without a buyer’s agent is like going to court without an attorney.  If you have any more questions about the differences between a listing agent and a buyer’s agent, feel free to give me a call or type something into the comment section below. If you send us a question that we use for a future video topic, you will receive a gift card. We look forward to hearing from you! 

In the aftermath of the election, people are wondering what is going to happen to the real estate market.  Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation The dust has settled, and we finally have a new President of the United States. With the craziness of this election season, many people have asked me what we can expect from the housing market in the coming months and years, so I’m excited to tackle these topics and provide some clarity to you. We have heard the question of “What happens next?” a lot over the last six months. Here’s the truth: elections can affect anything from mortgage rates to housing prices, stock market values, and corporate investments. However, studies show that during a typical election year, the uncertainty of a presidential race itself can have more of an impact on the housing market and economy than the actual outcome of the election. Statistics show that home prices rise 1.5% less during an election year than the year before an election and they rise 1% less in the year after the election. The good news is that the U.S. housing market is stronger than it was during the 2012 election, as is the economy overall. Based on that, we should continue to see the market go up for the following year. I hope this clarifies any misunderstandings you have. Here’s the challenge, though: because the election results can affect personal finances, some home buyers have been unwilling to take the plunge until the dust settles and the new president's policies become known. I anticipate more buyers will jump back into the market in 2017 because it will be considered a window year where many adjustments will be taking place and policies won’t have an immediate impact on people’s lives. Market fundamentals such as housing inventory, affordability, interest rates, job growth, and consumer confidence are real factors that influence the housing market. The fact still remains that housing accounts for 18% of the U.S. economy and remains one of the most foundational ways for Americans to build wealth. I hope this has helped to clarify any misunderstandings you may have had about our real estate market in the aftermath of the election. If you have any follow-up questions or other questions you’d like me to answer, give me a call or send me an email. I look forward to hearing from you.

Timing is everything when it comes to selling your home, so should you list it now or wait until the spring? Here are the pros and cons of each option. Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation When you’re thinking about selling your home, timing is a very important component. Should you sell your home in the fall or wait until spring to list it on the market? Today I’d like to break down the pros and cons of each option. The only reason that you should consider waiting to list your home until the spring is if you’re not super motivated to sell it right now. You have to be motivated to sell in most markets, but it’s especially important in our market today. When I say motivated, I don’t mean desperate; you should have a clear idea about where you’re going and why you want to sell. Why should you consider listing your home now as opposed to the spring? Here are 5.5 reasons: 1. Your home will have more competition in the spring. It’s true that more homes sell in the spring, but this is only because everybody else waits until spring to list their home. The bottom line is that there is roughly 35% less inventory—or competition—in the fall than in the spring. This means that if you list in the fall, you will be competing with fewer sellers. 2. Interest rates may be higher in the spring. We don’t know how long interest rates will stay as low as they are right now. If you wait to sell until the spring and interest rates increase, it will affect affordability for people that could otherwise purchase your property, shrinking your buyer pool and affecting your own purchasing power for your next home. You’ll face less competition as a seller in the fall and winter. 3. Many job transfers are about to take place. These inbound relocations for companies will occur now and you’ll be on the receiving end of those since people need to buy a house and need to move quickly. 4. Homes sell faster during the fall and winter. Because there are fewer homes on the market, demand increases, especially when you factor in the low interest rates we’ve been seeing. 5. Buyers are more serious in the fall and winter. Buyers will not put on their coats, boots, and hats and drive through snowstorms to get to your front door unless they are ready, willing, and able to purchase your home. There are tons of buyers are out in droves during the spring and summer, but not so much in the wintertime. The buyers that are left are highly motivated. 5.5. You could be in your next home by Christmas. Think about what it would mean to you if you and your family could be at Christmas dinner in a new home. If you can visualize this, you can make it happen now. If you’re interested in selling your home during the fall or holiday season or are just curious about what your home is worth in today’s market, give me a call or send me an email. I’d be happy to help you!

If you’re a seller thinking about listing your home this fall or next spring, there are three key home improvements you might want to consider making. Buying a home? Click here to perform a full home searchCall me at (616) 942-2449 for a FREE home buying or selling consultation If you’re a seller thinking about listing your home this fall or are thinking about a spring listing strategy, you might want to listen up. Here are the top three home improvements you can make in terms of percentage of cost allocated for that improvement, according to the 2015 Cost vs. Value Report for home improvements in Grand Rapids: Entry doors. Average cost: $1,187. Average resale value: $1,023. Average return: 86%. The entry door is the focal point of the home and the first thing a prospective buyer sees upon entering it. Stone veneer accents. Average cost: $7,100. Average resale value: $5,400. Average return: 76%. By stone veneer accents, I mean any place outside your home where you can put stone veneers on a column.The entry door is the focal point of the home and the most important improvement. Wooden deck additions. Average cost: $9,204. Average resale value: $6,700. Average return: 73%. A shoddy wooden deck can make a bad impression because wooden decks are the most accessible way people enjoy the exterior of their home. Click on the image below to get a free download of the 2015 Cost vs. Value report: If you have any real estate questions, please feel free to give me a call or send me an email. I look forward to hearing from you.

We had a question come in from a viewer who is wondering how to choose the right offer when selling a home. It's a great question for sellers. You want to start with price, but don't end there. The offer with the highest price will certainly get your attention because it's probably at asking price or even above it, but it doesn't mean you should automatically hand over the keys. You also want to compare contingencies in their offer - these are the conditions in the offer that if not met, they can cancel the deal. These contingencies can include getting approved for a mortgage, the house passing an inspection, and making sure the home appraises for a certain amount. They're all negotiable. Some buyers who are really aggressive will strip these contingencies to make their offer more appealing to you.Start with price, but don't end there.Also remember to consider the buyer's funding; will they pay cash or finance the house with a mortgage? If they're paying cash you won't have to wait on mortgage approval. If they're using a mortgage, make sure they have a pre-approval letter, and look at it closely. Thirdly, consider your home's value. Say you've accepted an offer, but the appraisal came in less than the price they offered. If the offer indicates that the buyers are willing to spend their own money to honor the original offer price, the offer is more attractive than one where the buyer is leaning completely on the money that's being loaned by the bank. Also remember to review closing periods. A buyer who can close within a few weeks is more attractive than one who needs a month or two. For most sellers, closing sooner is better, but that's not always the case, and it may not be the case for you. Finally, review buyer's extras in the offer. Some buyers may be willing to pay some of your closing costs to stand out. They might also have an escalation clause, where they automatically outbid other offers up to a certain amount. So if you're thinking about selling your Grand Rapids home and you have any questions for me, please don't hesitate to reach out to me. I'd love to help you out.