West Michigan Real Estate

Demand for Vacation Homes Soaring

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Vacation home sales spiked from January to April 2021, rising by 16.4%—more than 10% higher than the growth of existing home sales during the same period, according to the 2021 Vacation Home Counties Report.  Sales have continued to soar, however, and Lawrence Yun, NAR’s chief economist expects the trend to continue. “Vacation homes are a hot commodity at the moment,” he said in a statement. “With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers.”

We’re looking at four popular locations for vacation homes and taking you beyond the tourist traps to provide a peek into what local living could be like in your dream spot.

Santa Barbara, California 

Known for its laidback, coastal casual ambiance, Santa Barbara packs a lot of high-end appeal into its 42 square miles.

Where to eat: What’s better at The Lark: the cuisine, the wine, or the ambiance? It’s a toss-up at this Michelin-starred spot. Make a dinner reservation in advance and ask for a table on the covered patio, where you can enjoy a view of the starry sky with your family-style, Central Coast fare. After dinner, (and lunch, for that matter), grab a scoop of Garrison Bros. Whiskey & Pecan Pralines or Eureka Lemon & Marionberries from McConnell’s Fine Ice Creams, which TIME calls “The best ice cream in the world, as anyone who has tried it will argue.”

What to see: Thousands of Monarch butterflies visit the historic Ellwood Mesa Monarch Preserve in Goleta, just north of Santa Barbara, every year during their migration. This Eucalyptus grove is a 137-acre coastal bluff that also attracts hikers, artists, and wildlife lovers. Other must-dos: Watch—or play in—a polo match at the Santa Barbara Polo & Racquet Club and explore the 40 wineries of the Santa Barbara Urban Wine Trail.

Where to stay: While you’re figuring out where you want to purchase, spend some time at the five-star El Encanto. The seven-acre property, opened in 1918, is the epitome of relaxed yet elegant Santa Barbara life and boasts spectacular views of the ocean from its hillside perch.

What to buy: Located in Montecito’s highly desirable, guard-gated Sea Meadow community, this gorgeous home offers all the amenities you’d want in a vacation getaway, including a gourmet kitchen, large living room with fireplace, and a main-level guest suite. Outside, the grounds feature a resort pool, lush landscaping, and an entertainment patio, with private, shared beach access. It’s listed for $8,750,000 by Dana Zertuche and Lori Bowles of Coldwell Banker Realty.

Best time to visit: Anytime! The average high in Santa Barbara doesn’t dip below 65 degrees all year. But if you want to time a visit to the monarch migration, schedule a trip from mid-October to mid-February.

Pisa, Italy

Pisa has so much more to offer than the Leaning Tower.

Where to eat: Want to eat like a local? Ask a Pisano for a recommendation and you’re bound to hear, “Ristorante Osteria L’Artilafo.” Tucked away from the main tourist area, it’s a bit hard to find (Look for the side door and don’t be deterred if it’s locked—just ring the bell.). Inside, don’t let the cozy atmosphere fool you: The food is first class, with seasonal Italian fare you’ll return for again and again.

What to see: You’ll obviously need to take first-time visitors to the aforementioned Tower; It is one of the most popular attractions in Italy, after all. But what will you do the rest of the time? Spend the day at the lovely Orto Botanico di Pisa (Botanical Garden of Pisa), the first university botanical garden in the world. Stroll under the magical canopy of trees at the park of San Rossore. Head to Piazza dei Cavalieri on the second Sunday of the month, when the daily market welcomes antique stalls. In Pisa, you’re also just 55 miles from Florence, where more Italian wonder awaits.

Where to stay: Palazzo Cini is a luxury Bed & Breakfast set in a late 19^th-century Art Nouveau villa close to Corso Italia, Pisa’s main shopping street. Featured are gardens of jasmine, bananas, and orange trees and an art gallery with works by Chagall.

What to buy: Fulfill your “Under the Tuscan Sun” fantasies in this 12^th-century castle in the countryside of Pisa. Constructed as a fortified monastery and owned by the archbishopric until the end of the 17^th century, the castle is ensconced in cypress and olive trees and surrounded by vast parkland. The main villa has been lovingly restored over the years and features grand entertaining spaces, expansive frescoed halls and works of art, and several additional structures to accommodate guests and staff.

It’s listed for sale for $5,884,521 by Alessandro Tognetti of Coldwell Banker Forte dei Marmi.

Best time to visit: In Pisa, you’ll want to make sure you’re in town in June. Three important (and very popular) celebrations take place during this month: the Luminara, when the banks of the Arno are lined with candles, illuminating the city, on June 16; the Regatta Parade, a race along the Arno celebrating the city’s nautical history, on June 17; and the Battle of the Bridge, a true spectacle/cherished tradition, the last Saturday in June.

New York City, New York

If you feel the pull to NYC, you’re not alone. One of the most popular vacation areas in the world is also one of the most in-demand real estate spots.

What to eat: You can eat your way through three tantalizing meals a day during a month-long trip to New York and never double dip. But if we had time for just one meal, you’d find us at the two-Michelin-starred Momofuku Ko. It’s notoriously small and often hard to get a reservation, so bring your patience—and your appetite. In the main dining room, the 10-course Asian tasting menu spans three delicious hours. If you can’t get in, or during those times when you’re craving some genuine New York pizza, head to NY Pizza Suprema, offering arguably the best slice in the city.

What to see: You already know about the many monuments and must-see tourist spots throughout the city, but there’s plenty to see and do in NYC you might not be familiar with. A few of our favorites are ARTECHOUSE for unique experiential art and The Elevated Acre, a serene acre of view-rich green space between Lower Manhattan skyscrapers near Pier 11 and Wall Street.

Where to stay: You can take your pick of plush, swanky, and funky hotels in New York City, but The Mark, well, hits the mark. Between the history of this 1927 hotel, its glamorous setting on Madison Avenue, the posh décor and classic architecture, and the on-site Jean-Georges restaurant, there isn’t one inch of this place that isn’t awe-inspiring. It also doesn’t hurt that it’s one block from Central Park.

What to buy: A Pied-à-terre in the city generally comes with a mansion-size price tag. But this particular penthouse also comes with an incredible Fifth Avenue location and spectacular views of Central Park and the Manhattan skyline. The well-designed interior space includes a renovated kitchen with top-of-the-line appliances and a great room with 10-foot ceilings and a wood-burning fireplace. Floor-to-ceiling glass doors lead out to a wraparound view terrace that spans the length of the building, revealing more than 85 feet of frontage along the park. It’s listed for $7,995,000 by Jane R. Andrews and John Cronin of Coldwell Banker Warburg.

Best time to visit: It’s frigid in the winter and muggy in summer, but that does little to deter visitors. If you can time a visit to fall and catch the changing of the leaves, by all means, do so.

Durango, Colorado 

Looking for the perfect ski locale? Durango has the slopes and a style all its own.

Where to eat: Eolus Bar & Dining is a well-loved fine-dining spot in Historic Downtown Durango featuring everything from lobster corn dogs to prime rib “two ways.” When the weather allows, grab a table on the heated rooftop patio.

What to see: People often come to Durango to ski Purgatory. But the city isn’t just a cold-weather mecca. Here, you can enjoy everything from horseback riding to whitewater rafting to rock climbing. Off-season, mountain bikers flock to Purgatory Bike Park to ride the 400+ miles of backcountry trails.

Stay: Molinillos Mountain Resort will give you great access to the slopes and the city. But while you’re in southern Colorado, check out Dunton Hot Springs. Here, you’ll stay in a restored, hand-built log cabin with breathtaking views of the mountains—all of which were constructed around a saloon and dance hall. The springs are calcium bicarbonate, said to aid in circulation and promote healthy skin.

Buy: Now that you’re primed for the log cabin experience, it’s time to purchase one. This custom log estate offers premium mountain living with four and one-half acres on a peninsula in the private, gated community of Two Dogs, close to Purgatory and minutes from Historic Downtown Durango. The craftsmanship is as exquisite as the nature views are dramatic. Features include an elevator, home gym, wine cellar and card room, wet bar and billiards room, private study/home office, and an expansive guest wing. It’s listed for $6,795,000 by Lindsay Lubrant of Coldwell Banker Distinctive Properties.

Best time to visit: If you’re skiing, be prepared for temps that can get down to -15 in the winter. Summers are warm and sunny, with highs reaching the low 80s.

2975 Lakeshore Drive in Saugatuck, Saugatuck Township is Sold!

in Saugatuck, Saugatuck Township The 2 story at 2975 Lakeshore Drive has been sold.

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The Cost of Buying a Second Home is Set to Increase

As the holidays are now behind us, and winter is in full effect here in West Michigan, now is about the time people begin dreaming of the warm days of summer, and with that, the prospect of owning a home on or near one of our amazing lakes.

Whether it’s Lake Michigan, Spring Lake, Lake Macatawa to name a few, it seems it’s getting a little more expensive to take out a mortgage. This week, Freddie Mac said the average interest on a 30-year fixed-rate mortgage crept up to 3.22% — still very low. But this time last year, that rate was a record-low 2.65%.  If you were on the fence before, it might be time to take the dive and purchase before April 1, as that is when the increase is set to take effect.

Who will be impacted?

The pricing increases target borrowers applying for conventional high balance loans and those for second properties. 

For perspective, conventional mortgages account for about 64% of home purchase loans, according to the National Association of Realtors.

High balance mortgages are any that have a balance above the baseline conforming loan limit — $647,200 in 2022 for about 95% of the U.S. 

And a second home is any property you’ll live in part-time, but that won’t be your primary residence. 

For those in the market for a second home, costs are going up even more, thanks to higher fees coming in a few months.

Demand for second homes has gone through the roof in the last couple of years, as newly remote workers seek more space and better scenery.    

It’s not just the pandemic, said Daryl Fairweather, chief economist at Redfin.

“There is a long-term trend that we’ve seen of second-home purchases increasing,” she said. “I think part of that just goes along with wealth inequality in the rich getting richer and being able to buy more second homes.”

Soon, they’ll have to pay a little more for those homes. This week, the Federal Housing Finance Agency announced it’s increasing the upfront fees for second-home loans sold to Fannie Mae and Freddie Mac by as much as about 3.9% starting in April.

Why is FHFA raising fees on high-balance and vacation home loans?

The FHFA made the fee adjustments in order to facilitate “equitable and sustainable access to homeownership” while improving Fannie and Freddie’s “regulatory capital position over time,” FHFA Acting Director Sandra L. Thompson said.

Basically, that means the new fees will bolster FHFA’s cash reserves.  

The fees are also a way to help first-time home buyers and borrowers with low- and moderate-income get access to credit. First-time homebuyers in high cost areas with incomes at or below their area median income will be exempt from the fees.

The newly raised fees “should provide an opportunity for the government-sponsored enterprises (GSEs) to lower fees on the mission-centric portions of their businesses that primarily serve first-time and low- to moderate-income borrowers,” according to Mortgage Bankers Association President and CEO Robert Broeksmit.

Both fee hikes will go into effect on Apr. 1. 

How much are the new conforming loan fees?

The upfront fees for high balance loans bought by the GSEs will increase on a tiered scale between 0.25% and 0.75%, depending on loan-to-value ratio.

Upfront fees for second home loans will increase between 1.125% and 3.875%, also tiered and dependent on loan-to-value ratio.

How much of the new fees lenders absorb and how much they pass to the borrower will be up to the lender.

“It’s hard to model how much, but [the new fees] unequivocally mean higher rates”

In this scenario, lenders will likely inflate the mortgage rate they offer on these types of loans to offset their new incurred cost. 

“It’s hard to model how much, but it unequivocally means higher rates. That’s how it works,” according to a community lending expert.

However, if the lender knows they’ll be able to execute the loan sale to Fannie or Freddie before the new fees go into play, they won’t have to price it up, the expert continued. 

Redfin estimates that’ll cost a typical buyer an extra $13,500 on a $400,000 home. Fairweather said regulators may be trying to get a handle on what could be an emerging bubble in the housing market.

“If a whole lot of people are buying up second homes with the belief that it’s a great investment because the value will only go up, that can turn into bubble behavior,” she said.

Fees will also go up on certain high-balance loans with exceptions for first-time buyers. Fannie and Freddie have a mission to help make homeownership more affordable, said Guy Cecala with Inside Mortgage Finance.

Propping up the market for second homes isn’t exactly helping.

“They should be focusing their resources on low- and moderate-income borrowers, and that’s the reason for doing it,” he said.

Demand for second homes is likely to remain high, according to Dean Tucker, a mortgage broker in Boise, Idaho.

“I don’t think that it’s going to slow that market down. Second homebuyers are typically more affluent,” he said. “And if that’s the cost of getting a second home, that’s the cost.”

Apply before costs rise

If you’re considering taking out a loan above the baseline conforming limit or purchasing a second home, two factors should push you to act fast: the FHFA’s fee increase and expected rising interest rates for 2022. 

The FHFA set the date of Apr. 1 for the fee hikes “in order to minimize market and pipeline disruption,” according to its press release. 

Getting in before the new fees take effect will come down to individual loan characteristics and how long it takes from application to delivery. Giving your lender as much lead time as possible will likely help everyone involved.  

“If it’s a purchase transaction, consumers should be very conscious of the contract settlement date,” said Allied Mortgage Group COO Kyle Manseau. 

“And ideally, the industry and lenders need a little bit of buffer from the time a loan funds, to post-close, to prep it for delivery to the GSEs — generally a week or so. Realistically, we’re looking at 30 to 40 days.”

With that buffer period in mind, submitting your application around two months before Apr. 1 to allow for the regular processing time could help you avoid the new fees.

If you’re looking at either a high balance loan or a mortgage for a second home, there’s no time like the present to lock in a low rate.

All is not lost, however, for properties in Michigan, my trusted lending partner Dan Moralez has a fixed rate option where the increase will not be applicable.  “A super aggressive product and the rates will be way lower than what clients can get in most places.  With this product there is no price adjustment for second homes in Michigan only.  Does not apply to other states” says Dan. 

Buyers can always borrow in the private market. And a lot of them don’t even need a mortgage — they pay cash.

Luxury Real Estate’s New Power Players: A Snapshot

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About 71% of U.S. luxury properties owned by those with a net worth over $5 million are now valued in the $1–$5 million range. These individuals have been dubbed the new “Power Players” — because of their outsized influence on the luxury real estate market over the last 18 months, as per the newly released report “A Look at Wealth: 2021” from the Coldwell Banker Global Luxury® program.

Using wealth data compiled by Wealth-X, WealthEngine and The Institute for Luxury Home Marketing, there are four key groups of Power Players who have expanded their wealth since 2019, and are primarily responsible for the bulk of luxury real estate transactions in this country today. Baby Boomers, Golden Millennials, Second Homeowners and Urban Repatriates are driving demand in the suburbs, resort markets and secondary cities. Many are even moving back to major metropolises — bucking the urban exodus trend of 2020.

Here’s a quick snapshot:

1. Second Homeowners still drive the 2021 market.

This power group gobbled up inventory and drove up prices in resort enclaves like Coeur D’Alene and Monterey. Their influence on the overall luxury property market is one to watch; nearly 70% of those with a net worth of $5 million+ own two or more properties.

 

2. Baby Boomers represent 51% of Power Players.

Speeding up retirement plans, they’re buying dream homes in places like Park City, where they can build family compounds near outdoor recreation, or Sarasota, Florida, where there’s sunny weather and a friendly tax environment. Boomers show greater affinity for second-home ownership, as well; there are 2,020,854 Boomers owning more than three properties, the most out of any age group.

 

4. Urban Repatriates pump up cities again.

Luxury attached property values in 2021 increased an average of 10% compared to 2020 and 2019, and number of sales is up 39%. Investors capitalizing on low interest rates and higher inventory in cities like San Francisco and New York are behind the uptick, as are newcomers flocking to the city and former residents who fled in 2020 and are now on the hunt for more square footage and outdoor space.

4. Golden Millennials own 60% of millennial-owned properties priced $1–$5 million.

Golden Millennials have reached the life stage (35–40) where they are getting married and having children. This, combined with shifting psychologies during the pandemic and inability to travel, pushed them toward suburban locations, like the Greater Chicagoland area, and hot secondary cities like Atlanta, where they can get more house for their money. The influence of Golden Millennials will be important to watch as their wealth and real estate portfolios grow.

 

 

Benjamin Moore’s 2022 Color of the Year Is

Each year, the color and paint gurus at Benjamin Moore have the monumental job of selecting one paint chip out of more than 3,500 that captures the mood of the moment. They call this ever-elusive paint chip their “Color of the Year.”

Their annual analysis usually involves attending exhibitions, canvassing trade shows and collecting everyday observations, hobbies, personal rituals and cultural influences — you know, a lot of travel. But the team’s travel schedules were lighter-to-non-existent last year, which meant that their usual color explorations turned solitary and the swapping of ideas and inspirations with the group moved from in-person to online. It “became more of an inward-looking process than other years, where we’ve really focused on outside influences,” as Andrea Magno, Benjamin Moore Director of Color Marketing & Development, recently told Architectural Digest’s Hannah Martin.

The result of their team’s inner reflection was the selection of October Mist 1495, “a gently shaded sage that encourages creative expression through color,” said Magno. “People are looking for a means of self-expression. There’s this craving for individuality.”

Much like the green stem of a flower, Magno’s team saw October Mist as a natural connector from which a rainbow of colors could emanate — like the 14 colors in the Benjamin Moore Color Trends 2022 palette. It’s the kind of color that would allow the imagination to blossom.

Adds Magno: “As the spaces in our homes continue to evolve, we uncover more opportunities to express our individuality and leverage the power of color to design environments that serve different functions and styles, October Mist and the corresponding Color Trends 2022 palette reflects an effortless harmony of colors, while inspiring unique combinations for any paint project.”

The Color Trends 2022 palette features 14 Benjamin Moore colors — ranging from refreshed primary colors to luminous pales and botanical hues. There’s Wild Flower — a mellower version of poppy, a Hint of Violet — almost more gray than purple, and Mysterious —a richer and moodier take on navy. The palette is meant to encourage experimentation, invigorate the senses and give root to personal style. And don’t we all need a little bit of all of that in our lives right now. 

To learn more about the Benjamin Moore Color of the Year and Color Trends 2022palette, order color samples or to locate a Benjamin Moore retailer, visitbenjaminmoore.com. For more information, search #ColorTrends2022on social media channels including Instagram (@benjaminmoore), Facebook (Benjamin Moore Paints), Pinterest (Benjamin Moore), YouTube (BenjaminMoorePaints), TikTok (benjaminmoore)and Twitter (@Benjamin_Moore).

1950 Forest Drive in Park Township, Holland is Sold!

in Park Township, Holland The 2 story at 1950 Forest Drive has been sold.

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Keeping Family Close: Increasing Number of ADUs Largely Housing Parents of the Owner

Does it have a backyard cottage? This is a question that more and more real estate agents are seeing come up across the country, as buyers are seeking their next dream home. It’s in part because of safety concerns about nursing homes, adult children who are moving home because of finances, and maybe even homeowners who want a second income source. For all of these reasons, Covid-19 has led to a trend across much of the country where people want that second mini house. In fact, according to data from the National Association of Realtors, this category of housing rose to 15 percent of total purchases across the country.  

 

In Michigan, the surge in Accessory Dwelling Units (ADUs) looks like backyard cottages, attic apartments, or garage additions that create a separate unit with all of the amenities. Moreover, in a recent survey from the real estate experts at HomeLight, more than a third of agents across the country saw an increased demand for ADUs in their markets.  

 

Why do I need an extra unit?

While giving aging parents a place to call home is the most common use for these additions (as 61% of agents reported across the country), ADUs aren’t just for grandparents. Did someone say a home office or home gym? Maybe that ADU is for adult children who need temporary housing for financial reasons (35%). Another popular option is for short-term renters with 32% of agents citing this trend. Moreover, a guest house (43%) and yes, that home office (41%), or home gym (16%), might make it worth the upgrade. 

 

Thinking beyond the backyard cottage

Even homes without expansive properties are getting ADUs. Over a third of agents said the most common type of ADU in their markets is a detached structure — like that backyard cottage. However, 24% said an attached structure or interior conversion (20%), or garage conversion (16%) were being used. In the Midwest, interior conversions and attached ADUs are the most popular, with 27% and 25% of agents citing them as the hottest in their markets. 

Does an ADU really add value?

The most obvious answer is yes, an ADU will add value as the demand for them continues. In fact, this is even more true in the Midwest as the value of ADUs here has increased by 54% since 2020 as compared to 38% nationally. If you are selling a home with an ADU in the Midwest, you could get more for your home than a comparable one without this feature. 

 

If you are a buyer who is looking for a home with an ADU, you are not alone, and the good news is that there are now more properties with this amenity, especially in the Midwest. If you are thinking about adding an ADU — whether it’s a cottage, garage addition, or an add-on within your home — there are some compelling reasons why this could be an investment worth going for. The flexibility of an ADU is that you can use it for whatever purpose serves you and your family best, and that reason might change over time. The bottom line is, when it’s time to sell, an ADU can put your home at an advantage.

2 Story For Sale in Park Township, Holland

Lake Macatawa Access

•  1826 sqft , 2 bath , 3 bdrm 2 story – FOR SALE  USD469,000 .
MLS® 21109238

in Park Township, Holland

Beautifully updated home with deeded Lake Macatawa access in the highly desirable Chippewa neighborhood. Enjoy the charm this 3 Bedroom/2 bath home features with large deck and Patio to soak in the summer fun. The kitchen has granite counter tops with snack bar and eating area featuring views of Lake Macatawa.You will love the neighborhood & home, this is the perfect place to make memories as a vacation cottage or year around home. Location close to Holland State Park, General Store, restaurants, Mt. Pisgah, bike paths, parks for hiking, marinas and boat launch. Exceptional rental income& VRBO History and is being sold turnkey.

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Ranch For Sale in Park Township, Holland

Waterfront near Lake Michigan

•  2345 sqft , 2 bath , 1 half bath , 4 bdrm ranch – FOR SALE  USD499,900 .
MLS® 21108505

in Park Township, Holland

Waterfront near Lake Michigan-this is a 16-acre spring-fed lake -fabulous for paddle boarding, swimming and fishing!! Enjoy the absolutely gorgeous southern exposure views of the lake from every window. This lovey Silver Ridge home is located in award winning West Ottawa/ Waukazoo school district and is in Park Township-with access to Lake Michigan parks and loads of hiking and biking trails. The home features newer hardwood floors and stunning four-season sunroom with radiant floor heat – all freshly painted, the kitchen boasts Kitchenaid stainless appliances, granite tops & a snack bar. The main-floor master suite features beautiful views of the lake. The lower level is spacious and has 2 additional large bedrooms, family room with a slider to the patio. The landscaping and yard are stunning! This home has amazing curb appeal and includes a paddleboat!

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