As the Spring market prepares to heat up, the real estate community will begin a familiar ritual of preparing the latest new offerings for sale to make their debut to the market. The Parade of Homes is one of the most well attended Open House Events for new homes in the Grand Rapids, Michigan area. It's a coming out, not unlike a debutante's ball. Prospective buyers, lookers and the simply curious buy tickets and tour maps to see the insides of Grand Rapids latest new home offerings.
Builders work diligently to make sure that deadlines are met. Stagers dress the interior with stylish sophistication in the higher end homes. Not to be outdone, landscape artists create beguiling scenic entrances.
Unfortunately, this year... just beneath all this pomp and circumstance another type of Home Parade could be conducted. In fact it is already occurring in some parts of the country.
According to a 60 Minutes report this past Sunday, real estate agents in California and other parts of the nation are offering a new type of Open House event. These tours across all kinds of neighborhoods do not feature new homes, but rather take buyers on tours of Foreclosure properties available. They're referred to as the Repo Parade.
Talk about a sign of the Times...
In Grand Rapids, Michigan, the numbers say it all. Take a look at what's been going on over the past year with Short Sales.
Jan 2007 - 124 Short Sales Short Sale% 14.85%
Feb 2007- 126 Short Sales Short Sale % 15.93%
By MID-YEAR
June 2007 -213 Short Sales Short Sale % 21.22%
Aug 2007 - 288 Short Sales Short Sale % 26.45%
By YEAR END
Nov 2007 - 207 Short Sales Short Sale % 36.13%
Dec 2007 - 353 Short Sales Short Sales % 39.80%
THIS YEAR- 2008 thus far
Jan 2008 - 457 Short Sales Short Sale % 50.44%
These numbers underscore the impact that Foreclosures and Short Sales are having in the Grand Rapids, Michigan area. While buying a foreclosed home can be a great deal, it is important to keep in mind certain important issues to when purchasing a home in this situation.
1. Do Your Homework!
Buying a foreclosure home on the basis of a quick tour can be risky business.
Remember...foreclosure properties are sold "as is." It is a Buyer Beware Situation. The lender is not going to reveal any defects to you. It's up to you to discover them. So although the house may be spiffed and shined up to sell quickly, latent defects may exist in homes which have been neglected which are not readily visible. Don't rush. Take time to inspect your purchase thoroughly.
2. Understand Your Values!
Foreclosure homes are not necessarily the best deals.
One of the good results of the market correction is that housing prices have decreased across the board. The average home price in Grand Rapids, Michigan was approximately $121,000 in 2005. Today, that number is closer to $100,000. Don't assume that the best home on the block is the home in foreclosure. Sometimes it is...sometimes it isn't. Working with a good real estate agent can help you determine the appropriate valuation of a property.
3. Look Before You Leap!
Housing is one of the most important investments you will ever make.
As the foreclosure crisis widens, it is impacting a number of communities. When a home goes into foreclosure in a community, all the homes in the neighborhood will be affected by a diminishing in their value. You should keep this in mind when considering where to buy and what to offer.
A good deal may have it's value fade rapidly if there are too many homes in a community which are in a distress sale and the home prices are continuing to decline. It's wise to walk around a community, talk to neighbors and store clerks to find out more about a community. Having as much knowledge as possible is one way to safe guard yourself from making the wrong choice.
The Silver Lining in this difficult period in the real estate industry is that there are many Well Priced homes which are NOT in Foreclosure or Short Sale. This means that when you make your offer, you deal directly with the Home Owner and can get an answer in a much shorter time...usually days, not months.
In addition, you can negotiate with a real live person, not with a committee or worse...a voice mail system. If you're interested in knowing more about Great Homes In Grand Rapids, Michigan which are for Sale Directly from Their Owners, please give us a call or e-mail us at info@auduhomes.com.
Copyright 2008 Audu Real Estate All Rights Reserved
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