Recently my company implemented a new high-tech system using mobile and GPS technology to get buyers information on listings, 24 hours a day from our signs.  They did not charge the agents anything for this, all they asked is that the agents go out and change the sign riders they have with these now ones (which they provided.)  What amazes me is the number of agents who can’t even be bothered to do this small task (for their business), even agents with as few as 2 listings.  Come on…really?  Don’t you know…this is YOUR business, if you put nothing into it, guess what you can expect to get out…NOTHING!

We need to remember that as real estate professionals, we are independent contractors, this is OUR business, it is not our brokers business (or responsibility) to make us successful, it is ours.  A good broker will provide all the tools they can, but it is up to the agent to do their share and treat their business like a business.  Most of us came from other carreers, and sometimes we suffer from what I call…”Job Mentallity”, we need to remind ourselves…”If it’s to be…it’s up to me”

Randy

Dear Patrick,

Thank you for your time on Monday. I hope that you pass this along to Senator Booher as soon as you can. Per our talk on Monday afternoon, here are some of my observations and thoughts regarding this crisis….I don’t use that word arbitrarily. Make no mistake……this is a crisis!

I am not going to discuss the merits, pro or con of the Court of Appeals decision. That is above my pay grade. What I want to do is project out some ripple effects of this decision on a housing market in Michigan already “struggling to get off the mat”.

If our experience as a small mortgage office is any indication, the state will reel from this situation in the coming weeks. At this time, close to 20% of my clients currently buying homes are facing sales contracts that have been effectively voided. They are devastated. Here is a thumbnail of some actual situations for background:
• A buyer in Royal Oak; $1,000 in pre-paid expenses, over 90 days in waiting, about to close, now MERS has killed his purchase.
• A buyer in Manistee, again with $700 in pre-paid expenses, about to close this week, MERS voided purchase with no clear chain of title.
• A buyer in Cadillac, 45 days in process, just paid $650 for a Flood Elevation Survey and Home Inspection, contract voided per MERS.
• A buyer in Cadillac, 40 days in process$250 in pre-paids, voided MERS title.

This is just in the last week. So let’s extrapolate out a ways; if something is not done quickly to get these MERS chain of title issues resolved quickly, here is what we could very well see throughout our state:
• Vacant homes that were about to have families re-occupy after a long time sitting vacant…are now vacant once again.
• Neighborhoods with derelict properties, declining in market value and safety, will continue to blight Michigan.
• Buyers, who were just starting to feel confident enough to buy again, now throwing in the towel in disgust, disheartened enough by the tight lending criteria. They will go back to renting, feeling that this is not the time to buy.
• The critical Spring/Summer selling season passes by as Government, the Courts, MAR, Title Companies and Lenders and MERS vacillates over what to do with the ruling and its affect on Michigan foreclosures.

On to some suggestions, as you asked:
• I like your idea….it seems only logical that a “work group” be convened to examine what can be done in the near term to conscientiously move the process along to get these distressed homes back on the market. (Critical Note: all 4 buyers have stated that they would be willing to see what happens; if clear title can be resolved in 30-60 days, they would be willing to wait it out for the homes. Let’s move while buyers all over the state share this sentiment!)
• I would suggest the Legislature consider the following measures:
1. Immediately convene committee hearings with all parties interested (MERS, Lenders, Title and PMI companies, MAR) to discuss the “ripple effect” of this ruling. Think about all of the homes previously sold, now with a cloud on title!!!
2. Review the process of Judicial Foreclosure (especially in the case of empty REO properties), and Affidavit of Abandonment to see if this process can be streamlined at all to turn these homes back around to the market by Summer to capitalize on the short selling season in Michigan!
3. The Legislature has gotten “crafty” before, extending a 3 year window for Homestead Exemptions to homes for sale by owners currently not occupying the home during the beginning of the Housing Crisis. Desperate times can call for conscientious decision making in short order, if all parties see the urgency. All that is required is leadership; and I voted for Senator Booher because he is a leader!
4. This issue needs to get the attention of the Governor. His weight will be needed to make the parties involved work at the appropriate speed to get quick results.
5. MAR Legal Counsel, Greg McClelland, is an excellent source of information and has the gravitas to be a force for action. I would ask him to be part of your workgroup.

Patrick, in summation, I do not exaggerate here. We are Affiliate Members of and do business in the following Boards of Realtors:
• Paul Bunyan Board of Realtors
• Traverse Area Association of Realtors
• Clare/Gladwin Board of Realtors
• West Central Board of Realtors
• Mason/Oceana/Manistee Board of Realtors
The Realtors in all of these Boards I have spoken to, are all either VERY concerned or have not yet seen the issue hit their deals. The biggest concern; the lack of information and the lack of leadership/sense of urgency in creating a set of solutions. There is no one organization addressing this head on to create a structure by which the parties involved can create a solution. I am counting on the Senator’s years as a banker and his terms as a State Representative, to bring the needed leadership on this issue to the forefront. Action is needed; yes, thoughtful, not more “knee-jerk reactions”, but action none-the-less.

I thank you for your time and pass along my best to the Senator. I do not pretend to know all there is to know about such a complex issue. But, here’s what I do know; if you need any more feedback, I can find plenty for you……a lot of folks are hurting here.

Bruce Meek
Division Manager/Sr. Mortgage Consultant, NMLS# 138648
Genisys Mortgage Professionals
Ph (231) 779-9817 Cell (231) 846-0824

(Thanks Karen for a great topic)

Via Karen Fiddler Broker/Realtor (The Fiddler Realty Team/eVantage Real Estate):

It’s hard…..the last thing any buyer wants to do is find out that the “right” home is the very first one they see. It causes so much doubt,

“well, this is the first one we’ve looked at, what if there is something better”?

What if there isn’t? What if this is the perfect home for you and you miss it? I’ve seen it happen. I can usually tell from my buyers when they spot “the” house for them. There is a look and visible emotion evident. But it’s hard when it’s the first home…..and I need to try and explain to brand new clients that they should write up the offer.

I feel pushy!
I feel like I’m rushing them!
I feel like ….well…..a salesman!

I hate that! I haven’t had time to build rapport….to assure them that I care about which home they buy. That I want them to have the perfect home for them……unfortunately it seems that it’s the first home they walked into. Just trust me?

This happened yesterday! Brand new buyers….although I’ve been talking with them for a couple of months while they worked with a lender on financing. We saw 3 homes and the very first one they really loved. It was what they wanted…..so now what? Write an offer! It’s a short sale, we have lots of time to change our minds, but limited time to get an offer in. The agent is going to pick one and work only one. I can already tell you that they are going to miss their opportunity…..we needed to get the offer in last night. No word from the clients and I’m leaving shortly.

We talked quite a bit yesterday about short sales and timing and options. And I left them with the one question I like to tell all my buyers:

“Would you be sad if this home was gone when you make up your mind?”

If so…..let’s write the offer, if not…then let’s move on!

Karen Fiddler
Broker/Associate
The Fiddler Realty Team/eVantage Real Estate
Lic # 01494165

www.searchfororangecounty.com

Serving all of Orange County, California Real Estate!
Buyer’s Agents, Listing Agents, Short Sales, REOs, Equity Sales, Investors

Most people who know me, know I’m all about real estate in this blog, but for a couple of times a year (Christmas and Easter),  I have to take a brief step back from my business and talk about a ‘Higher’ business, so if you don’t want to hear about spiritual things, just tune in next time for more about the housing market, but for today, it’s all about…Him….A baby…the real story of Christmas…

“Fear not, for behold, I bring you good news of great joy that will be for all the people. 11 For unto you is born this day in the city of David a Savior, who is Christ the Lord.” (Luke 2:10,11)

During the hustle and bustle of the season, it’s good  to remind ourselves what Christmas is really all about…The birth of a Savior.  The Christmas scene depicted here, is the real reason we celebrate…the miracle of a baby, born of a virgin..God’s own son, sent to save all who would believe.  So, as you go about your Christmas traditions, take a moment to consider…what does Christmas mean to me?  If you, like me, believe it is so much more than tinsel and garland, Santa and Frosty, etc…then great, but if you are not sure, I urge you to pick up a bible and read for yourself, the Christmas story…the story of a Christmas over 2000 years ago, when the Son of God came to earth as a little baby, grew to be a man,  and then gave his life as a sacrifice for all of us who believe in him…”that we should not perish, but have everlasting life.”  If you don’t have a Bible, contact me, I’ll get you one, or go online to http://www.biblegateway.com/ and read the story for yourself.

You may want to start with the Gospel of Luke, or Mathew, or better yet…both, then, read on and and discover “the rest of the story”, the story that leads to the cross, where the Christ child who’s birth we celebrate on Christmas, sacrificed his life, that we might live.

That Christmas was the beginning, but when we get to Easter, we hear him say:  “It is finished”..the victory is ours, he paid the price for us, and that is the rest of the Christmas story, the part that people don’t always talk about.  It’s easy to talk about a baby, and celebrate his birth, but as we do so, we need to remember why he came, and what he accomplished while he was here, and what will occur when he returns.  It’s all in the book…I hope you’ll read it…often.

Merry Christmas, and as Tiny Tim says in “A Christmas Carol”…”God bless us..everyone.”

Here is a great post from Kathleen Elim explaining some misconceptions about Realtors® compensation and  how these costs are rarely discussed or understood by the general public.  This weekend, here in Michigan, the gas pumps hit $3.05 a gallon, which is the first item on her list.  Up here in the north country, where doing business in the winter, especially if you specialize in recreational property as I do, is pretty tough to do without 4WD and my Dodge Ram only gets about 14 miles per gallon, and guess who has to keep feeding this bad boy?  That’s right…me, there is no corporate charge card, no sugar daddy, just me.  Many in our profession also have no health insurance, it is a very big problem for the self employed in this country and especially hard hit are Realtors®.  Many find themselves having to choose between car payments and car insurance…or health insurance, and the choice is obvious…no car, no work, no work…no money…you get the idea.

My point, like Kathleen’s is not to complain, but just to make note that this is a very expensive business and getting more expensive all the time, and it’s good to see some of these issues brought to light, as we often just “grin and bare it” and don’t mention it to anyone.  Thanks Kathleen!

Randy Poll ~ Greenridge Realty Inc.

Realtor®. SRES, ABR, SFR, AHWD

231-924-8668 www.randypoll.com

Randy Poll ~ Realtor®, SRES, ABR, SFR, AHWD

Greenridge Realty Inc.  1331 W Main St.  Fremont, MI 49412

231-924-8668 or www.searchnewaygo.com

Via Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate:

When I landed my first administrative job out of college, the dress code was pretty much set in stone. Jeans and flip-flops (you’ve got to be kidding!)  Back then, you wore pantyhose and closed toe shoes even in sweltering 100 degree weather.  Suits were the norm if you were going to be taken seriously, and the bared arm or mid-riff was grounds for scandelous stares.  Certain things just weren’t done.

When I started my real estate career in the mid 90′s, the dress code enforcement policy was still very much alive and well.  My first company required the wearing of a ‘Gold Jacket’.  I became adept at finding ways to pair gold inventively with all sorts of things in my closet.  But, it didn’t stop with your personal appearance, your car was also expected to be neat and free of debris.  The broker told us that HIS reputation was on the line.  When we left the office to do a transaction, it wasn’t just about us…

It’s amazing how quickly things change.  Within the past 15 years, Casual Friday has morphed into Casual Everyday.  Sometimes, I’ve gone to a Closing and been hard pressed to figure out who was the Realtor® and who was the client.  And it had nothing to do with the price range of the home.  One wonders if the move to home offices has escalated this trend or if we’re simply becoming messier as a society in all aspects of life – homes, dress, cars etc.

The latest edition of Bloomberg Business Week has an article entitled ‘The Tragic Decline of Business Casual’. It seems that there is a growing backlash from employers about the extent to which casual dressing has digressed over the past couple of decades in the professional setting.  Some companies are now hiring image consultants to teach their employees proper etiquette and how to dress for work.

In the real estate community, our employers are the clients we serve.  One can’t help but wonder how they perceive this issue when in their workplaces, there is a growing awareness of the need to present a certain appearance in public.  After all, when I go to see a doctor, I expect him/her to be clean, well dressed and wearing a white coat.  And, I wouldn’t trust my money to an accountant who showed up with holes in his jeans.  Why do we think that it’s OK to present a less than stellar image at times to individuals who are entrusting their real estate agent with the largest financial investment 97% of Americans will ever make?

In Case You Were Wondering…

According to the Bloomberg Business Week article,  the Top five Office Fashion Faux Pas are…

1.  Hooker Earrings

2.  Chest Plumes…as in the open shirt which bares the chest or breast

3.  Exposed Bra Straps

4.  Toes…yes, as in bare toes even when adorned with a nice pedicure

5.  Tattoos…if you have them, cover them up when in a professional setting.

Lola Audu, is the Designated Broker & Owner of Audu Real Estate.  Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area.  We’ve had the privilege of helping hundreds of clients succeed in their goals of purchasing and selling property including demonstrated success in the negotiation of Short Sale Transactions. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511.

News Release

For more information contact:

Patricia Nieboer, Association Executive

West Central Association of REALTORS7

10443 Northland Drive, Big Rapids, MI 49307

(231) 796-3640, (231)796-3645(fax)

Global Pursuit of the American Dream

August 2010

American real estate is catching the eye of international buyers. Foreigners who understand the value of owning U.S. property are flocking stateside to cash in on the opportunities in the U.S. housing market. This is according to the National Association of Realtors^® 2010 Profile of International Home Buying Activity, which revealed an increase in the number of international clients serviced by Realtors^® over the past year.

West Central Association of REALTORS^® says several factors, including the strength of the dollar and the emerging economic recovery, continue to drive international interest in owning a home in this country.

“International buyers and investors are investing in their future by owning homes here in the U.S.,” said Randy Poll, President. “Foreign buyers continue to see this country as a desirable place to own property, and they view ownership here as a profitable investment.”

According to the survey, 28 percent of Realtors^® reported working with at least one international client from the period between April 1, 2009 and March 31, 2010. Eighteen percent of Realtors^® completed at least one international transaction during that time. Those buyers represented 7 percent of the total housing market and are estimated to have purchased $66 billion of U.S. residential property. In comparison, the 2009 survey reported 23 percent of Realtors^® worked with international clients and 12 percent completed at least one sale.

International buyers hailed from 53 countries across the globe, but more than half came from Canada, Mexico, the U.K. and China/Hong Kong.  At 23 percent, Canadians make up the largest group, and have remained so over the past three years. The survey shows Mexican buyers accounted for 10 percent, surpassing the U.K. as the second largest group of international buyers. Buyers from the U.K. decreased from 10.5 percent in 2009 to nine percent in 2010. Eight percent of buyers came from China/Hong Kong.

“Perceptions abroad about U.S market trends have lead many foreign clients to believe purchasing a home here is more affordable than in their country and holds more value,” Poll said. “The U.S. remains an attractive destination for foreign investors, despite the global credit crunch and economic slowdown.”

Proximity to their home country and the convenience of air transportation are the two factors that most influenced international buyers when deciding where to buy in the states. Florida typically attracts European, Canadian and South American buyers. The East Coast draws more Europeans, and Asian buyers are attracted to the West Coast. The Southwest attracts many Mexican buyers.

Poll says the rise in international interest has had an immediate and powerful impact on real estate markets.

“Through working with immigrant buyers and foreign investors, Realtors^® have developed partnerships that bring value to buyers, sellers and investors around the world. International clients know that Realtors^® have the expertise, knowledge and experience to help guide them through the complex process of buying property here at home.”

The West Central Association of REALTORS, a local non-profit real estate trade association, has over 240 members in Newaygo, Lake, Mecosta, Osceola, and Montcalm counties.  Affiliated with the Michigan and National Association of REALTORS7, it is dedicated to education for professionals, promotion of home and real property ownership and protection of personal property rights through legislation.

Currently if you buy a home that is “zero % Homestead”, you have to wait until May first to claim your exemption, so if you buy your home on May 2nd, you have to pay 18 additional mills for a year.  This bill will give a second filing date (October 1st) for those who find themselves in this situation.

With all of the foreclosures on the market these days, many of which have lost the exemption due to being vacant for a long period of time, this will be a great savings to many, who have had to shoulder this extra tax burden for months, waiting for May 1st to roll around.

Hopefully this is only the beginning of some great common sense legislation that we will be seeing coming out of Lansing as we all work together towards getting Michigan’s economy back on track.

Thanks to the Senate Finance Committee Chair, Senator Nancy Cassis (R – Novi), bill sponsor, Senator Jud Gilbert (R – Algonac) and committee members Senator Mark Jansen (R- Cutlerville), Senator John Pappageorge (R-Troy) Senator Gilda Jacobs (D – Huntington Woods) and Senator Deb Cherry (D – Burton) for their support of this important legislation.  and thanks to the MAR Public Policy staff for meeting with legislative leaders to help move Senate Bill 77 though the House and Senate.

(Before photo of cottage in Northern Newaygo County)

Some are estate properties, some foreclosures, but in any case, these folks are not “taking advantage” of anyone’s misfortune, these properties need to be sold, and they need to be improved, and here, of all places, in the land of free enterprise, we should understand that with great risk, should come great reward.

(Old Kitchen)

(Renovated cottage)

(Renovated kitchen)

These investors do a great service to us all, and here are some of the reasons I believe the deserve a good profit:

1.  Risk…These folks are risking a lot of money.  They are taking a gamble that the great expense they go too, to get these homes back in livable (and finance-able) condition will provide them with enough profit to stay in business.

2.  Increased Value…In most cases these investors are taking homes in very poor repair,  and they are bringing them back to life, which increases the value, which in turn, increases the value of other homes in the neighborhood.

3.  Affordable Housing…Finally, they are providing affordable homes in “move-in” condition.  These homes in many cases are not able to finance for most people, or if they are, they need so much work that the buyer is not able to take on the task.  This is a great service to the community, as in most cases these are the first-time home buyers who, if they are unable to find suitable homes that they can actually get a loan for and feel good about living in, choose instead to continue renting.

In closing, I just want to say that I respect those “House Flippers” that are doing it right, they spend a lot of money to make these houses…homes again, and they deserve to sell them for “fair market value.”  The question:  “How much did they pay for it” should really be irrelevant, instead, we should be asking, how much value is there in what they are providing?  If the value is there, let them make their profit, they’ve earned it.

Randy

Old bathroom in "Granny's house"

New bathroom in "Granny's house"

New Kitchen in "Granny's house"

Following is the blog post from Karen Fiddler…Thanks Karen!

Via Karen Fiddler Broker/Realtor (Great Western Realty Group/eVantage Real Estate):

I was out with a home buyer. This was not their first time, we had sold their home a year ago and they have been traveling, visiting family, and RVing across the country….needless-to-say these are my kind of people . But while I relate to them personally and greatly enjoy their perspectives on life, I was surprised to find a prejudice against “flipper” homes.

Because of my respect for this couple, I asked them if I could blog about this issue on Active Rain and make the conversation public. So beware….this is public.

The couple expressed that they felt that there was something wrong with an investor making money off someone else’s tragedy and they didn’t want to contribute….fair enough.

But then as I pondered this, I wondered what’s wrong with someone taking advantage of a financial situation to create wealth?

It must be made clear that these are not people who bought short sales and are flipping them without any improvements, we were looking at home which were purchased at auction (I can tell because of the way our MLS shows the title) and then spruced up and re-listed. Normally these homes have fresh paint and carpet, the yards have been tidied up or replanted and often….the kitchens and bathrooms have had granite or tile installed. They are lovely homes!

So if an investor purchases the home, takes the financial risk, creates value and reaps a profit….all while providing an easy escrow and quality home….why is this wrong? I don’t think it is!

Karen

Karen Fiddler
Broker/Associate
www.great-western-realty.com

Serving all of Orange County, California Real Estate!

Patricia Nieboer, Association Executive
West Central Association of REALTORS®
10443 Northland Drive, Big Rapids, MI 49307
(231) 796-3640, (231)796-3645(fax)

More than 2.5 million people became first-time homeowners last year. Like graduating or getting married, this life-changing event will usher in a new chapter in their lives.  Once new homeowners have their house keys in hand and prepare to move furniture into their new place, one question they may find themselves pondering is, “What happens now?”

One major advantage new homeowners will enjoy is the ability to personalize and decorate their house; renters are often restricted in this respect. Walls painted in a rented home will likely need to be repainted in their original color when the renter moves. Remodeling the interior is an investment a renter will never recoup. In contrast, homeowners have the freedom to strip the interior bare and rebuild it entirely, investing in remodels and upgrades that can pay off in the long run.According to the West Central Association of REALTORS®, websites like HouseLogic.com can provide tips, home improvement advice and how-to’s that can inspire homeowners and help them maintain and enhance their home’s value.  “Closing on a property for the first time is a tremendous accomplishment. It represents the hard work and responsible choices of the new owner,” said Randy Poll, President.

“When you invest in your future through home ownership, the possibilities are endless and HouseLogic can help both new and seasoned homeowners take full advantage of the opportunities that owning a home offers to people. It’s a rewarding experience through which families build lives and memories, as well as their financial futures.”Over the long-term, owning a home helps people dramatically increase their net worth. The most recent data from the Federal Reserve Board shows a homeowner’s net worth is 46 times that of renter’s. According to Poll, home ownership is how many American families begin to accumulate wealth.

“Even given the challenges of today’s market, people who bought within their means with the intent to stay in their homes for more than a few years have the opportunity to build financial stability into the future,” said Poll. “A fixed-rate mortgage might last 15 to 30 years; renting is forever.”

The West Central Association of REALTORS, a local non-profit real estate trade
association, has over 240 members in Newaygo, Lake, Mecosta, Osceola, and
Montcalm counties. Affiliated with the Michigan and National Association of
REALTORS®, it is dedicated to education for professionals, promotion of home and real
property ownership and protection of personal property rights through legislation.

Randy Poll – 2010 WCAR President