A Quick Analysis of the Short Sale Situation in Grand Rapids, Mi

daisyOver the past year, the number of homes sold through the Grand Rapids, Michigan real estate board which were Short Sales increased form 14.85% in January to almost 40% by the end of the year. 

This year, the month of January seems to indicate that the trend is continuing unabated with 457 Sales recorded as Short Sales/Foreclosure representing 50.44% of total volume. (information is supplied from statistics available through the Grand Rapids Association of Realtors.  It is deemed reliable but not guaranteed.)

These numbers are sobering.  Since 2005, Grand Rapids, Michigan has had a drop in real estate values of over 20% for Single family homes.  An average home value in 2005 was about $121,000.  Today, the average home is just under $100,000.  

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. Home Sellers in the Grand Rapids, Michigan area who Sold within 90 days last year did so because there homes were perceived to be a Good Value!

For stressed out home buyers this spells relief.  There are few things more irritating than finding the “perfect home” only to discover that it may be several months before you know if you can buy it or not.  It is also somewhat disconcerting to know that if anything is wrong with the home…if the owner is the bank, they will not be disclosing this to you.  It’s up to you to find every latent defect and you will be usually purchasing the home “as is.”

There are some advantages to dealing with a home owner vs. a bank owner. When 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 through their real estate agent and 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 contact us us at info@auduhomes.com.

2 thoughts on “A Quick Analysis of the Short Sale Situation in Grand Rapids, Mi

  1. Hi Dave, The number of 457 reflects homes that are being sold as repossesed homes/foreclosures to home buyers AND homes that are sold to a 3rd party as a Short Sale in which the bank agrees to take less than what is owed on the mortgage balance in order to facilitate a distress sale.

  2. Hi,

    Just as a point of clarification on the “457 Sales recorded as Short Sales/Foreclosure representing 50.44% of total volume” in your article.

    Does this mean that the house was taken back by the bank (foreclosed), or the house was sold to a 3rd party as part of a short sale by the bank. Is it one, or the other, or both?

    Thanks,

    Dave

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