Grand Rapids Ranks #3 in the U.S. for Biggest Housing Shortage

Grand Rapids is making headlines because of our low inventory. I’ll go over how our low supply of homes is affecting our market today. 

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The housing shortage in Grand Rapids is making headlines! A recent article in Grand Rapids Business Journal says Grand Rapids is number three in its list of the 10 U.S. cities with the biggest housing shortages. Today I want to talk a little bit about what that means for our market. 

Right now there are 1,426 homes on the market compared to around 10,000 homes on the market at this time in 2008. Demand is crazy in Grand Rapids.
Buyers and sellers still have plenty of options to get a great home.

In fact, there are people who want to move into a new house and sell their current home, but they are scared they won’t be able to find a new home because of the low inventory and increased competition. Situations like those are definitely when an agent or team who has access to off-market listings will come in handy. 

The best teams in any area are going to have a list of off-market properties, so you can feel confident listing your current home or buying your first home if you choose to work with one of those teams or agents.

I recommend selling your home now and putting yourself in a situation to buy in the next 60 days when inventory increases in the spring as well. 

As far as buyers go, there are a ton of options out there and the spring market will bring an influx of inventory to choose from. 

If you have any questions about this topic or any other real estate related questions, please feel free to give me a call or send me an email. I look forward to hearing from you!

Listen to my radio interview on Wood Radio 1300:

The Value of Working With a Veteran Real Estate Agent

I recently came across an article about the value of working with an agent who has a veteran level of experience. I think you'll be surprised to hear how much more money that can make you.

Call me at (616) 942-2449 for a FREE home buying or selling consultation

I recently came across an article in The Wall Street Journal from a couple years ago that I wanted to address today called "The Price of Real Estate Experience: $25,000."

A professor of finance was intrigued by this topic, so he took a 10,000-home sampling over a 10-year span and researched real estate sales. He broke the sale into three categories; homes sold by rookie agents with two years of experience or less, homes sold by agents with two to 10 years of experience, and homes sold by real estate veterans with more than 10 years of experience. 

He found that the veterans sold homes for an average of 12% more money than rookie agents. In our market with an average sale price of $175,000, that equates to about $20,000 more in your pocket by hiring a veteran agent. 

The more experience you have, the more insight you have. You also will have the finances and the skills to market better, because you've seen it all. Having seen almost every possible version of a real estate transaction is invaluable experience that means more money for a seller. The funds to market properties appropriately comes with a breadth of knowledge and experience to allow an agent to do it over and over and turn their skills into mastery. 
In our market, working with a veteran agent could net you an extra $20,000.
The study also found that two-thirds of the listings were sold by veteran agents, while the rookie agents only sold half of their listings. A lot of the listings from rookie agents were expiring. Another benefit to working with a veteran agent is their knowledge of neighborhoods and a larger network of buyers. 

If you knew for a fact that your ability to get the most money for your home hinged on hiring an agent or team, would you place more value on that, or on appeasing a friend who just got their real estate license? I ask because we see it all too often. Our market has attracted so many agents because the barrier to entry is so low; you can get a license for $100. This leads to many agents making transactions without much experience in marketing or negotiation.

Hopefully you found this information helpful! If you have any questions about buying or selling homes in the Grand Rapids market, give me a call or send me an email. I'd be happy to help you.