Don't Want to Sell on Land Contract? Take Another Look.

If you're like me, you're sick of hearing the phrase, "Think outside the box." I've been outside the box for so long now, I can't even see the dang box anymore!

I have had some success this year by utilizing some unorthodox means to get my real estate deals in Oceana County closed, however. The most prominent, by far, is not even original, just a resurgence of an old practice from the '80's. That's right, the infamous LAND CONTRACT.

I have two pending sales right now that I wouldn't have had I not been able to educate both buyer and seller as to the benefits of a land contract (or a purchase money mortgage, but that's a whole 'nother blog in and of itself).

In one of these deals, I represented the buyer, and the seller was not offering LC as one of the terms. My buyer had a three year old foreclosure, was working on repairing some credit divots, and financing wasn't looking likely. My home buyer needed a home, though, so I got flexible. I took the time to prepare a package that would excite the seller, and convince him to entertain a land contract. This is the step that I think a lot of people are missing.

The package contained a credit report, a letter of explanation regarding the failings of the credit report, income verification (including length of employment), proof of funds for the down payment, our offer, and our earnest money deposit. Working with the seller's agent, we presented the package, and the seller accepted our offer.

Now, I have had many calls from agents who will call on one of my listings and just ask, "Will the seller take a land contract?" In most cases, the answer would simply be, "No." (Unless, of course, the seller and I had already agreed to that in the original listing contract.)

I have taken to getting in the practice of asking the agent to prepare a package like I described above. I then present the whole package to the seller, and have been pleasantly surprised when a few of them changed their stance and accepted a land contract offer.

I'm not suggesting that land contracts are the answer to everything. Obviously there are issues that come into play that must be addressed, such as "due-on-sale" clauses which are in most every mortgage agreement. The seller may also need the funds to move onto their next home. So no, LC's are not for every situation.

I do firmly believe, however, that if you're not educating your buyers and sellers on the possibilities of a land contracts and purchase money mortgages, you're missing out on business, and I don't know anyone in Michigan that can afford to do that these days.

Just Listed! 6111 N Oceana Dr Hart, MI 49420

$159,900

This beautiful ranch home features an open floor plan in a country setting. The main floor includes a living room, dining area, and kitchen under a cathedral ceiling. Master suite includes a full bath and walk-in closet. Two bedrooms and another full bath are located on the opposite end of the home from the master suite. There are lots of closets for storage, and main floor laundry.

The home sits on an unfinished walk-out basement, and is pre-plumbed for a future bathroom. A built in egress window allows for a future basement bedroom.With 1344 square feet of finishable basement space, this could become a 2600+ sqft home with 4 beds, 3 baths, and added living areas.

The exterior is maintenance free vinyl, and since everything is new, you don't need to fear having to replace the roof or furnace. Many of the home's products are still covered by manufacturer's warranties.

The two car attached garage includes an electric opener. Relax on the 10x12 deck and enjoy watching birds and deer. Lots of trees provide privacy. The deck has a retractable awning to provide shade on a summer day. The home sits on over 3 1/2 acres of land with lots of trees and a view of the neighboring pond.

Located just a few miles from Pentwater and Silver Lake, this home would make a great year round home or summer vacation getaway. The location is just a couple of mile from US-31, which is on the West Michigan Fall Color Tour circuit. At this new price, this one won't last long. To see more of the home, visit http://www.timwhitehomes.com

First time home buyers are eligible for a tax credit of $8000 when purchasing this home.

Bank Owned Properties Mean Opportunity for First Time Home Buyers

First time home buyer activity is on the rise in Oceana County. A significant reason for this is the number of bank owned properties currently for sale in the Hart, Shelby, New Era, and Pentwater areas. Bank owned properties, often referred to as foreclosures, are often sold well below market value, and create unique opportunities for first time home buyers.

I recently had the pleasure of writing an accepted offer for a young engaged couple from Hart, MI. They are getting married this summer, and wanted to start looking for a home now. They have decent credit, but relatively low income, and the majority of what they could afford consisted of manufactured housing, which they hoped to avoid if at all possible.

I sent them to one of my preferred lenders, and had them prequalified. Prequalification is vital when attempting to purchase a bank owned home. Once the lender had them preapproved and through underwriting, and we had established a monthly payment that was affordable and comfortable for them, I began my search in earnest.

I was looking for a home that would meet their needs, and their budget of about $60,000. I ran searches daily, as I knew that when the right one came up, it wouldn't last wrong. I searched for about three weeks, in which time we looked at a handful of bank owned properties. The majority of these properties were going to require too much work to make them livable, so I continued to search.

Last week, I found a listing that was just unbelievable. It was a bank owned property in New Era, listed for $60,000. I was familiar with the home, and the location was perfect for what my buyers were looking for. I made a phone call, and told my clients that we needed to act fast, and see the home that night.

My buyers rearranged their schedules, and we went to see the home. The curb appeal was great. The home was less than ten years old, and was in great shape. The yard was just over an acre, and even had privacy fence built along the neighbor’s property line. This was a three bedroom home with a two car attached garage, and 1300 square feet of clean, well kept living space.

My buyers were instantly excited, and quite frankly, so was I. This was exactly what we had been praying to find, and we immediately submitted a full price offer. Since I already had them preapproved and through underwriting, our offer was solid and attractive. As it turned out, there was another offer made the same day, so we submitted an addendum offering to bump our price by $1100.

Earlier this week, I found out that that little bump sealed the deal. Our offer was accepted, and this previously bank owned home will soon be owned by two wonderful people. When they return from their honeymoon, they'll be coming home to a home that they own. I couldn't be happier for them.

Aftermath of Tea Parties in West Michigan

I was driving east on Ocean Dr. in Hart, Michigan today when I saw this little gem sitting alongside the road. I had my camera with me, like any good realtor should, and I just couldn't resist blogging about it.

Michigan is widely held to be a left leaning, liberal state. So much so, in fact, that Senator McCain's campaign withdrew from the state early during the election runoffs of 2008. John, I think you gave up on us too quickly.

You see, there are strong pockets of conservatism in West Michigan. The recent Tea Parties have sounded a clarion call to the formerly "Silent Majority", and I wouldn't be surprised to see more of these types of displays.

Even if you're a liberal, you have to admit this is pretty clever.

Headlines Belie Good News in Housing Start Reports

"March Housing Construction Drops 10.8 Percent"

By now you've probably seen headlines like this one. It's dramatic, it sounds like the world is ending for real estate, and it is just the kind of dramatic overstatement that makes me gag when I read the news. But have you actually READ the article? I've linked it to the headline.

Believe it or not, there's actually a lot of good news in there. The article explains that the percentage is based largely on the fact that multi-family home starts (apartments) are down, but in fact, single family home starts have stabilized. Here are two excerpts from the article which belie the headline:

"The much larger single-family sector actually stabilized in March at an annual rate of 358,000 units, the same level as February when single-family starts managed a small 0.6 percent rise."

"The bad news is that home construction is still in the tank. The good news is that single-family activity may finally be stabilizing," - Joel Naroff, an economist at Naroff Economic Advisers

So why the mixed message? No, wait, scratch that. Why the completely misleading, borderline outright lie of a headline? The answer is simple: bad news sells.

The media has adopted an attitude that no one wants good news. I am a fan of Fox News, which is where this article comes from. However, they are often just as prone to adopting this attitude as anyone else.

As a Realtor, I find it encouraging that apartment starts are down. This means that people are buying homes, and are less interested in renting. With low interest rates and low prices, the consumer is realizing that renting is not their only option.

Now, more than ever, it is extremely important that we perform as real estate educators, and not just salespersons. We have to counter this type of negativity, and make people aware that the sky is truly not falling.

Somebody get on the phone and tell Chicken Little he can come out, we're going to be OK. All we need is a healthy dose of reality. We've seen an increase in home sales in West Michigan real estate, and I'm doing my part to make sure the word gets out. You can help by reblogging and linking this blog to everyone you know.

Just Listed! 6471 Avalon Dr SE Caledonia, MI

JUST LISTED!!

This amazing 4 bedroom home for sale is only 2 years old, and features lots of extras. With over 2500 sqft of finished living space, it’s a true value at just $83 per sqft. The main floor has an open floor plan with lots of room.

The living room has a gas fireplace, and abuts the formal dining room. There is a flex space currently being used as an office, but could make a great sunroom or breakfast nook. The kitchen has an island with snack bar, and includes all stainless steel appliances. The appliances are GE, and include a smooth top electric range, a built in microwave, dishwasher, and side-by-side refrigerator with water and ice dispenser. There is a powder room and convenient storage closet located off the garage entry.

Upstairs are four huge bedrooms, all with large spacious closets. The master bedroom is over 17’x17’, has its own full bath, and an enormous walk-in closet that is 9x10. All closets feature space saving organizers. A second full bath is located upstairs, and the 2nd floor laundry means no more carrying laundry baskets up and down the stairs.

The home sits on a full walk out basement. The west side of the basement has an egress window in place, and is sized perfectly for a bedroom. There is over 1000 sq ft of finishable living space down stairs, giving this home the potential to be over 3500 sq ft with 5 bedrooms. Plumbing for a future bath was installed under the concrete, and is ready to hook up.

Avalon Pointe homeowners enjoy an association pool and clubhouse. The membership fees are very reasonable at $280 a year. That's less than $24 per month! The association is made up of homeowners in the neighborhood, and organizes neighborhood events throughout the year.

There is a fenced sidewalk connecting Avalon Pointe to Explorer Elementary, a Blue Ribbon Award winning school. There are daycare facilities located with walking distance of Avalon Pointe. M-6 is just a couple miles away, so you can easily access all of Grand Rapids. Gaines Township residents pay some of the lowest taxes in Kent County, so you can put more of your monthly payment towards building equity in your home.

This home is a great value, and can be yours today. First time homeowners may be eligible for $8,000 in federal tax credits. Interest rates are lower than ever, and this home can be purchased with as little as 3.5% down. Call or email Tim White today to schedule your personal tour!

The Guy That Inspires Me

One of my most valued friends is Jaime Woodall. I met Jaime about four years ago when I started attending First Baptist Church in Hart. My family and I were new to the church, and Jaime was the youth pastor there at the time. Jaime and his wife Kris welcomed us into the church family, and Jaime and I really connected.

Over the first year or so, Jaime and I would meet for coffee, and talk about some seriously deep stuff. I'd never had a friend I felt so comfortable talking with. Jaime opened up new doors for me, and encouraged me to build my relationship with Jesus Christ.

Jaime is not your typical pastor, at least not the way I came to expect pastors to be. I grew up in Southern Kentucky, where I attended Southern Baptist churches, and never established a real relationship in any of those churches. Jaime is laid back, easy to talk to, and has a very approachable personality. He is a great listener, and doesn't push his opinions on you.

As we became friends, Jaime encouraged me to do some public speaking to other churches' youth groups. With my Marine Corps experiences, and the struggles I have had with my own faith, he helped me reach the conclusion that I had something to offer young adults. I have done a few of these speaking events since, and the rewards have been amazing.

In August of 2007, Jaime and I both announced that we would be leaving First Baptist. I had been given orders to deploy to Iraq, and would be gone for a year. Jaime felt called to do missionary work in Northern Michigan, planting churches. It was a tearful Sunday when we stood in front of the Congregation together and said our goodbyes. We didn't know if we would ever see each other again.

I stayed in touch with Jaime while I was in Fallujah, and we encouraged each other in our endeavors. Jaime was dealing with the upheaval of his family, and I was dealing with my family's sense of loss with me being deployed. Jaime guided me to seek strength in Christ, and I hope I helped him do the same.

I returned from Iraq last September, and returned to First Baptist Church. Jaime was having some success up in Petoskey, and I was happy for him. I missed him and his family, but I knew God was using them for His work.

Today was missionary Sunday, and Jaime came to town to speak to the Congregation. He shared with us how his ministry in Petoskey had grown, and the lives that he and his group had touched. It was amazing. Now Jaime is preparing to move to Boyne City, to plant a church there.

I love the way Jaime ministers. It is a message of love and salvation. He doesn't push, and allows you to come to Christ at your own pace. He fosters a desire for you to want you to learn more without you even being aware of it. Then when you have questions, he is there to answer them.

Jaime is affiliated with Genesis. Genesis has stripped away the dated religiousity that hinders so many from seeking out God's word. Genesis seeks to encourage building a relationship with Christ, fostering goodwill, and community service. Please visit their website by clicking the image below.

Please include Jaime and his family in your prayers, that he may continue to do God's work, and change peoples' lives like he changed mine.

Foster Care Licensing

My wife and are currently in the process of obtaining our Foster Care License here in Michigan. Today we attended our first six hours of mandated training, and it sparked some interesting questions for me.

Did you know that to care for a foster child, you have to submit to background checks, fingerprinting, interviews, and a mountain of paperwork centering around your belief systems and your own childhood? In addition, an applicant must attend twelve hours of training for state licensure, plus additional training from the supervising agency. Continuing education is also required on a yearly basis to maintain the license.

What blows my mind is that we have to do all this work to take care of someone else's child, but there are absolutely NO requirements for just anyone to have children. This is especially frustrating considering that I already have three wonderful children that Amy and I have cared for for over twelve years. Our kids are great students, active in the church and community, and are just all around generally "with it". Now all of a sudden, we have taken in a six month old little girl, and we have to take parenting classes?

I wish the biological parents of these foster kids had sat through these classes before having children. We learned today that in Muskegon County, they receive 3500 calls alleging child abuse each year. Of those, 75% are deemed to be valid complaints and are investigated. Our instructors further added that there are about 400 children in foster care in Muskegon County today. 20% of these children are eligible for adoption, and just need parents to adopt them.

We are more motivated than ever to do what we can to help provide a safe home for some of these children. The rewards of providing a safe haven for a troubled child are worth the frustration. If you are interested in adopting or providing foster care, please visit Bethany Christian Services at http://www.bethany.org/grandrapids. This is one of several licensing agencies, and happens to be the one that we are working with. We live in Oceana County, but Bethany has offices in several locations, and their workers will come to you.

You can also inquire at your local Department of Human Services for your county. If you are thinking about getting into foster care, and don't feel comfortable contacting an agency, contact me, and I'll be happy share our experiences with you.