Buying and and selling houses can be tricky. Here in Grand Rapids, MI, we have a huge variety of markets and sub-markets, wildly different seasons, and enough options to make your head spin. Do you buy a historic home in Heritage Hills, or a brand new build in Walker? A side-by-side duplex in Kentwood, or a 3/2 in Wyoming?
What about the Kalamazoo, Portage, or Parchment areas? Am I crazy to consider a rent-to own, and will a new build be way too expensive? All of the questions can drive you nuts.
Fortunately, we can cut through the clutter. If you’re looking to buy or sell a house in Grand Rapids, MI, or the surrounding areas, read on!
How to Find Real Estate Deals
Let’s start on the purchasing side. Where do you start if you want to find the right home for your family (or the perfect investment)?
The ‘Tried and True’: First, you can talk to a Realtor. The right Realtor can provide a huge boost to your home search. Since they work in your local market every day, they often get wind of great deals before they hit the MLS. In addition, many homes are easier to access if you have a Realtor on your team. They can show you a dozen houses in a day if you like. Visit this page for great tips on picking the RIGHT Realtor.
The ‘Tech Savvy’: The internet has a huge number of sites where you can look up available homes for free. Zillow.com, Trulia.com, Realtor.com, FSBO.com, and ForSaleByOwner.com, are excellent places to start. Looking through these sites can give you a great idea of what is available here in Grand Rapids, MI.
The ‘Do-it-Yourself’: If you are willing to put in the work, you can find and create your own deals. While this is more of a commitment, these ‘diamond in the rough’ properties often wind up being great deals. Many of the best deals and homes aren’t listed on the MLS, so you’ll either have to find your own motivated sellers or know someone who does. Which leads us into our next point…
How to Find Motivated Sellers
There are many fantastic ways to find motivated sellers. But first, what creates a push for a quick sale in Grand Rapids, MI?
Most often, this motivation comes from a big life change. A new job, a marriage, a cross-country move, or a change in financial situation are just a few examples. When you find folks that need to move quickly, you can help them avoid a lot of stress with a well-timed offer.
Wouldn’t it be nice if people would just hang a sign around their necks announcing status as a motivated seller? Unfortunately, finding these folks usually requires some digging. Here are just a few ways to identify motivated sellers in Grand Rapids.
Driving for Dollars: Sometimes, the houses themselves tell you when the owner is motivated. If you’re looking to buy in a particular neighborhood, drive around the area regularly. Look for homes in need of some care. Long grass, piled up newspapers, notices on doors, and a lack of upkeep might indicate that the owner is just too busy to keep up with the house. Contact the owner of the home, or leave your information at the house for them
Direct Mail: If you have a certain area in mind, you can send mail (yes, real mail, with stamps and everything!) to the homeowners in that area. Some people may be tired of being landlords, while others have just been considering selling their homes for years. If you reach them with a well-timed letter, you can really help them.
Online Advertising: There are many ways to advertise for real estate online. Google Adwords, YellowPages.com, Bing Advertising, and Facebook Ads are just a few of the many, many options available to you. The costs can run high, but if you find a great deal, it is well worth it.
Probate Sales/Tax Sales: In Grand Rapids, MI, you can find great properties at local tax sales. If you want to go this route, make sure you learn about the proper procedure for making bids on properties. In addition, probate courts often sell property in accordance with the family’s wishes. Follow up with yours to see what is available.
Craigslist: On the Grand Rapids and Kalamazoo Craigslist sites, look through the postings. You have to do more leg work to research and follow up with the leads, but you can find some great houses if you look hard enough. Also, try creating your own posts to request the type of home you’re looking for.
Lawn Signs: If you are in Grand Rapids or Kentwood, MI I can’t recommend this, because there are ordinances against posting signs around town. However, if you are in an area that allows lawn signs, this can be a great way to get the word out.
Once you’ve found a great, motivated seller, what next?
How to Work with FSBO Sellers
When you’re working with a FSBO seller, think of them as your partner. They have a problem they need to solve (getting their house sold), and you can help them by purchasing their home. By developing an open, honest, and cooperative relationship, you create a win-win situation.
Remember that if you’re working with a motivated seller, they are likely dealing with a stressful situation OTHER than their home. So be kind! Be open and honest about your intentions, and be willing to sit with them and talk through their issues. By having good conversations with them, creative solutions often become clear.
If you are able, consider creating multiple offers for the sellers. That way, they can consider ALL of their options, such as land contracts, cash sales, traditional offers, lease options, and more.
Always follow up with the seller. Be available to communicate, and respond quickly. Follow through on your promises, and answer all of their questions.
You likely won’t be able to help everyone you talk with. However, by creating a solid professional relationship, you have a great chance of creating a win-win situation.
How to Buy a ‘Rent-to-Own’ Property
Rent to own properties, also known as lease options, can be a great choice. If you need time to save up for a down payment on a mortgage, would like to improve your credit score, or just want to try the neighborhood before committing, look into rent to own properties closely.
First, many properties are advertised as rent to own or lease option houses. The Grand Rapids and Kalamazoo Craigslist pages have many available. In addition, when you dig through the other listing sites mentioned above, you’ll find that a lot of them are available for lease options. Typically, you will have to contact the owner or Realtor to find the terms the seller would consider.
In a rent to own house, you will make regular rent payments to the seller, because you are leasing their home. However, you also have the option to purchase the home for a set amount of time. Once you qualify for a loan, you can close on the home as you normally would.
Make sure you use excellent paperwork (I highly recommend using an attorney), and have a clear agreement from the beginning.
Remember that a lease option transaction is an ongoing relationship. You and the other parties will be working together for at least a few months, while payments are made and you work towards closing. Before you sign any paperwork, make sure that you are getting into business with the right people. A good professional relationship will help all of your interactions run smoothly.
For more information on rent to own houses in Grand Rapids, visit this page.
How to Sell Your House Fast as FSBO
In Grand Rapids, MI, you can successfully sell your home quickly FSBO. If you want to really dig in to this topic, check out our page on selling your home quickly ‘For Sale By Owner.’
For now, though, we will hit some of the high points. First, do your research! It is very important to understand the sale process, and the steps you will need to get your house closed. This is not complicated, but pick up a good book on the process. Amazon.com has many available.
Next, make sure you are pricing your home correctly. You can start with online research to get a good ballpark figure. Try Zillow.com, Trulia.com, Realtor.com, Homes.com, and Redfin.com, among others. Search for RECENTLY SOLD houses within about half a mile of your own. Then, narrow down by the number of bedrooms, number of bathrooms, square footage, lot size, and features.
Find the houses that have sold in the last six months that are the most similar to yours. Look at the range of sold prices for those homes. This is your likely listing price range.
It is very common to overprice your home when selling FSBO. Overpricing will cause the house to sit for a long time, which can be very frustrating. Don’t fall into this trap!
Next, stage your home for sale. Make your home clean, tidy, and inviting. Make easy for buyers to picture themselves living in your house. For a great walkthrough, visit this page on staging your home. Next, practice showing your home, so you are ready when the first buyer walks through the door.
Marketing may be the most important element of selling your home quickly FSBO in Grand Rapids, MI. Make sure you have excellent photographs, even if you need to hire a photographer for an afternoon. Write a unique and interesting description of your home, so the buyer understands what is special about your house.
Post your home for sale online. Most buyers begin their search on the internet, so get your home in front of them! There are many options available, such as FSBO.com, forsalebyowner.com, and flat fee MLS listing sites, each with its own pros and cons. You should also invest in a quality lawn sign, so people driving by know you’d like to sell.
When offers start coming in, be ready. Know your price limits in advance, and stick to them. The negotiation process can take a long time, and some buyers will try to nickle and dime you all the way to the closing table. Be honest and fair with your negotiations, but don’t give away the farm either!
When it comes time to close, contact a real estate attorney and a title company. These two will help you successfully navigate to the closing table. Make sure to get recommendations or references, and check these folks out thoroughly.
For a more in-depth description of the process, visit this page on selling your home FSBO in Grand Rapids.
How to Work with Realtors and Brokers
The right Realtor can be a wonderful partner. The wrong one can cause frustration, headaches, and a lot of wasted time buying and selling a house. So how can you make sure to choose the right Realtor?
First, get references. Talk to people who have recently bought or sold houses, and get their opinions. Go to your local REIA (there are some good ones in Grand Rapids) and talk to the members. Or, at the very least, find some online reviews.
Once you have a few references, make sure the Realtor or broker is an expert in your type of house. If you’re an investor looking for a duplex in Rockford, find a Realtor who has worked with investors in the area. If you’re looking for a starter home in Wyoming, choose someone who has done a lot of transactions in your price range and target area.
If you’re looking for a $50,000 fixer-upper, and the person only has experience in $1,000,000+ transactions, they are probably not the right choice for your situation.
Make sure the Realtor you choose is an excellent communicator. There is a lot of back and forth in a real estate transaction, and you don’t want to work with someone who is hard to reach (or never calls you back).
Ask the Realtor about their systems. They should be able to clearly communicate their listing, marketing, staging, and closing processes. You should feel that these systems will be sufficient to help you successfully buy or sell a home.
Remember that you will be working with the Realtor for a few weeks at least. Make sure you get a good ‘vibe’ from them. If you are able to have an effective professional relationship, things will be much less stressful.
Once you have found the right Realtor, treat them with respect. They are professionals, and earn their money by helping others. Communicate with them clearly, and be responsive. Follow through with your promises. Be honest about your goals and limitations, and help them to help you.
When you have found a great Realtor, make sure you express your gratitude, and spread the word about their service. Referrals are an essential part of their business, and they will really appreciate it.
How to Boost Your Credit
If you want to get the best mortgage rates and qualify for the home of your dreams, having good credit is essential. But if your credit isn’t as solid as you would like, don’t despair. There are a lot of great steps you can take to improve your credit score in Grand Rapids, MI.
First, work hard to understand what makes up your credit score in Grand Rapids. Your FICO score, which is used by many lenders, is judged on the following elements:
35% – Payment History
30% – Amounts Owed
15% – Length of Credit History
10% – Types of Credit in Use
10% – New Credit
As a result, your credit score reflects years of payment and borrowing history. Make sure your score is as high as it can be by reviewing your credit report, and searching for errors.
In Michigan, you are legally entitled to one free credit report per year from each of the three credit reporting bureaus – Experian, Transunion, and Equifax. Rather than buying the hype about ‘free’ credit reports that require you to sign up for a credit monitoring service, go to www.AnnualCreditReport.com.
This site will allow you to get your credit report, for free, legitimately. If you want to be really savvy, check one bureau’s report every four months. That way, you get an update 3 times a year, and you can successfully monitor your own credit.
Address any errors on your report. Contact the lender, utility company, or credit card company directly, and report any incorrect marks. This alone can really help your score.
Once you’ve addressed any errors on your report, make sure you’re set up well for the future. You can’t change past issues, but you can establish great habits moving forward.
Create systems to pay your bills on time, such as auto-pay (available with most banks and credit unions) and/or calendar updates. Pay down your existing debt, starting with the highest-interest debts. Keep your balances on your existing credit cards below 30%, and avoid opening or closing new cards as ‘tricks’ to improve your score.
You can also use the help of a credit counselor. However, make sure you’re working with a legitimate one. Check the Michigan Attorney General’s office for this guide on avoiding scams, and the Federal Trade Commission’s page on choosing the right credit counselor.
For more information, visit our page on improving your credit score in Grand Rapids, MI.
What You Need to Know About Our Business
At Honeybee Homes, we are local real estate investors located right here in West Michigan. We buy and sell real estate in Grand Rapids, Kalamazoo, and the surrounding areas.
We specialize in fast closings, and pride ourselves on being honest, hard working, caring, responsive, and reliable.
We see ourselves as problem solvers, not salespeople. We never deliver ‘hard pitches’ or pressure anyone to sell, and we are open and honest throughout the process. If you are interested in selling your house in Grand Rapids quickly, we would love to hear from you.
We also love to create great relationships with other real estate professionals. If you work in the industry, reach out and we’ll work to find ways to work together.
In Conclusion
We hope this guide has been helpful and informative. For more information on these topics, or anything related to real estate, please contact us at (616) 606-3390, or at info@thehoneybeehomes.com.
Good luck, and go get ‘em!