Foreclosures and Short Sales in Grand Rapids

JOHN RICE ASSOCIATE BROKER | REALTOR

In today’s market the term “short sale” & “foreclosure” not only are making headlines – they’re making today’s smart buyer money. West Michigan has seen a rise in it’s foreclosure rate – in fact it doubled. Doubled? that’s not as scary as it sounds; our market went from a historical foreclosure rate of 2% to 4% in recent times.
With 4% of the market in foreclosure what does that mean for today’s buyer? It means 2 things 1. Foreclosed properties are often offered at a discounted rate to that of a traditional sale as they are owned by banks or the government – 2 parties who consider the home a liability not an asset and who wish to sell quickly.
2. Today’s traditional seller (not in foreclosure) is having to compete against significantly reduced comparable properties.
As a buyer in today’s market how do you capitalize on this current foreclosure trend? 3 things:
A. Get a buyers agent to assist you. No seriously this is not simply a sales pitch for business. here’s why: Bank list their properties with listing agents who work for the bank- they represent the bank for a set commission rate. There is a commission offered to a buyers agent for helping the buyer find a home so they’re motivated to help the buyer with the buyer having to pay. However there is typically not a discount on commission for going straight to the list agent. It doesn’t save the buyer money and the agent with the sign in the yard is working for the seller. Second- foreclosure markets can run quickly – the top properties can sell in a matter of hours. Working with a buyers agent will get you the inside line on a home as soon as it hits the market or prior to the general public being aware of it.
B. Get pre-approved. Banks won’t even look at your offer unless it’s from a buyer who has been pre-approved.
C. Be informed. Banks want to dump the house as fast as possible but that doesn’t discount your right to know what you are buying. ASIS doesn’t mean you don’t have the right to inspections and it also doesn’t automatically mean that is something drastically wrong with the property. It does mean that the bank does not plan on fixing any issues you come across. However you can usually negotiate for those issues. Let’s say you place an offer for $140k on a home that’s on the market for $160k in foreclosure. After negotiating the offer is accepted at $145k. You have inspections and find you need a new roof which is estimated at $3500. You can then go back to the bank to look to renegotiate and get that $3500 off the purchase price. Of course the deal has to be written properly in the first place to ensure you reserve the right to do this but an agent that’s use to dealing with foreclosures can assist with that.

Want to learn more? Contact us or plan to visit our net seminar.

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A few words from our clients:
We have worked with John multiple times now, both buying and selling homes. We 100% recommend him and he’ll always be our go-to realtor for any future real estate needs. John is experienced in the industry and well-known and respected. He is extremely professional and knowledgeable, on top of being an all-around nice guy. He is responsive and answered all of our questions along the way. We asked John for several referrals for other services (lender, cleaner, etc.) and we were very happy with all his suggestions. John is honest and will listen to your concerns/opinions. He is never pushy, but gives great advice based on his years of experience. We are so thankful for the guidance we received from John to make our recent home buying and selling experience successful and quick! If you need a realtor, call John.
G&E Webb
We have worked with John to sell 1 home and buy 2 homes and he is an incredible realtor! He is professional, prompt with communication, honest and patient. We had quite the list for what we were looking for and John was always available to answer questions and get us in to look at a home. His knowledge and connections in the industry made both the buying and selling process go smoothly. We simply cannot recommend John enough!
Chase and Nicole O
John Rice is hands down one of the best realtors in the Grand Rapids and surrounding areas. We have utilized him as our realtor on two separate occasions, once over 10 years ago, and again over the last several months to buy/sell. He is incredibly knowledgeable and uses his expertise to help guide you in your choices throughout the realty process. He is professional, kind, has impeccable attention to detail, responsive, and clearly loves what he does. Choose John for your realty needs…he is the best of the best!
Amanda W
John helped us sell our house when we moved out of Grand Rapids 3 years ago and recently helped us purchase a new house when we moved back. He is very professional and knowledgeable of the area and market. I would recommend him to anyone looking to buy or sell.
S&K Weber
Purchased and sold with John, he is: Professional, an extremely good communicator, precise, and acted on our behalf 24/7. He kept us up to date on listings for purchase and preparation advice for selling our home. He was knowledgeable about neighborhoods. Photography for sale of our house was impressive. We were appreciative of the guidance regarding making offers, inspections, when to list our home, writing contracts, detailed review and presentation of offers on our home and being realistic about our purchase of new home. Great experience, Great Realtor.
J&G Junod
It was a wonderful experience working with John. His professionalism, honesty, experience, and knowledge of the Grand Rapids market, helped us in multiple ways. John sold our home in one day, was honest about what we could expect from offers, and was spot on. As we progressed toward finding our new home, again, he was extremely knowledgeable about the neighborhoods, home values, and history of the homes. We are more than happy to say, that he helped us find our dream home within our budget! Anything I needed, he was there through emails, texts, or phone calls. He definitely put in a lot of work for us. Without a doubt, I will ask for his assistance again when the time comes. Thank you John!
T&A Lascari
We moved to the Grand Rapids area 11 years ago and John was very patient as we found our first home and made the experience absolutely seamless! When we were ready to sell and buy again we knew to reach out to John. As we remembered and appreciated, John is an absolute professional and was and advocate for our best interests at all times during this wild market. We found great value in our new home and he helped us get top dollar for our sale. Grateful to have him on our side though the whole process. You won’t be disappointed!
Lance W
We can’t say enough good things about John. He is an awesome realtor! We bought our home with his help and just recently sold it with his help. He is highly knowledgeable about the Grand Rapids area market and his expertise and professionalism has shown through both times we worked with him...John is a wonderful communicator and a genuine person. His sincerity has been evident in his commitment to making the purchase and sale experience as seamless and informed as possible. We consider ourselves incredibly fortunate to have worked with John and strongly recommend him without reservation!
E&T VanBuskirk