How Do You Deal With Picky Property Purchases In Real Estate? – Jake Davis
On this episode of The Closing Table, we sat down with Jake Davis!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Jake Davis…
The conversation began with a this or that icebreaker on appraised value, bank financing, and more. Jack provides an insightful glimpse into his life beyond real estate. At 35 years old, he’s a devoted father to two young boys, dedicating his free time to them. Alongside his role as a husband, he’s fortunate to have a caring wife who ensures their household is a hub of health and wellness. Their commitment to well-being is evident as they religiously follow practices like those advocated by the medical medium, prioritize herbal teas, and maintain a consistent cleansing routine. For Jack and his family, health is the ultimate form of wealth.
Zooming into the specifics of his market, Jack centers his efforts on Rochester Hills, a city where he also resides. Situated approximately 40 minutes north of Detroit, this area boasts a prominent feature: the affluent downtown Rochester. Renowned for its vibrant events and a top-tier school district, it’s a magnet for both residents and potential buyers. Expanding his geographic scope, Jack caters to the entire Metro Detroit region. His guiding principle is clear: putting people’s needs first and financial gains second.
Despite the sensationalized reports of a market downturn, Jack’s perspective offers a grounded outlook. The average sales price across Metro Detroit has exhibited a modest uptick, moving from 338k to 340k. While media may depict a broader market decline, Jack underscores the relativity of these terms, acknowledging that Michigan’s market dynamics differ significantly from those of other states. Notably, the average days on the market have seen a shift from 15 to 22 days—a visible sign of slowdown. This trend is attributed to a substantial 27% reduction in inventory, causing the market’s pace to adjust accordingly.
When discussing the attributes that attract buyers to his market, Jack highlights a pivotal factor: the automotive industry. He notes that this sector continues to draw foreign nationals from overseas to work within it. Additionally, his personal market of Rochester Hills possesses several other appealing aspects. The community’s strength lies in its exceptional safety record, earning it consistent rankings as one of the safest cities in the US. Furthermore, the area boasts top-notch schools, picturesque parks, and the advantage of being just a 40-minute drive away from the emerging city of Detroit.
Jack’s real estate journey actually commenced in Hawaii, rooted in familial ties to Oahu. He vividly remembers an early transaction that held a lasting lesson. During this deal, the buyer’s employment status unexpectedly posed a challenge, jeopardizing their loan qualification. The lender’s clever maneuvering saved the situation, but the experience taught Jack a crucial principle: educating buyers about refraining from significant financial moves before closing a home purchase is of paramount importance.
Jack then candidly acknowledges that sometimes, a client-agent partnership doesn’t align. Occasional conflicts arise, and parting ways can be the best solution for both parties. He recounts a challenging instance where a buyer, scarred by a previous agent’s disregard for their interests, exhibited apprehension. By demonstrating his genuine concern for their well-being, Jack managed to foster trust. This instance reinforced his belief that professional detachment and prioritizing clients’ best interests are key.
Following that, Jack recounts a poignant encounter with a seller who clung to her lakeside home, which she was reluctantly selling after her husband’s passing. His empathetic approach, driven by his spirituality and openness, resonated with her. Their bond facilitated a seamless transaction, resulting in a sale above the asking price. Despite subsequent complications with the buyer, Jack’s steadfast support and negotiation skills brought solace to the seller, who eventually embraced a new home with Jack’s assistance.
In recalling an intricate real estate scenario, Jack delves into a particularly challenging situation he encountered. The property at hand occupied a sprawling acre and had been the residence of his client for an impressive four decades. Originally a single parcel within one city, evolving circumstances involving Utica and Shelby Township necessitated a division of the lot. This division resulted in two houses coexisting on the land: the front house located in Utica, while the back house found itself within Shelby Township’s jurisdiction.
The complexity deepened as the property’s zoning transitioned from residential to light industrial—a shift that positioned the land as commercial and made it adjacent to a highway. Confronted with these intricate legal and zoning constraints, Jack and his client sought a resolution by engaging with local authorities, including the mayor. The challenging process of rezoning was met with resistance from both cities, each unwilling to cede land from their respective territories. Faced with these hurdles, the property remained on the market for a protracted period, its sale further complicated by a tenant-related predicament that required six months to rectify.
Despite these challenges, the sale ultimately did not materialize due to the property’s designation as light industrial within the boundaries of two municipalities. The alternative was to market it as non-conforming. Amidst these intricacies, Jack’s proactive approach yielded a positive outcome. He secured a tenant for the front property at an advantageous rate, easing his client’s concerns about problematic tenants and safeguarding the house’s upkeep.
The conversation wraps up with Jack’s approach to owning a home, he emphasizes the importance of his experience, market insights, and the evolution of available resources. He outlines a strategic approach that centers on leveraging seller financing to his advantage. By circumventing conventional interest rates and tailoring the terms of the purchase, Jack highlights the potential benefits of such an approach. Drawing from his expertise, he advocates for a negotiation process that results in terms conducive to his personal objectives of homeownership and financial security.
Jack’s decision to employ this strategy isn’t arbitrary; it’s informed by his grasp of the industry, including his own market knowledge and a comprehensive understanding of the real estate landscape. He reveals that he has personally embraced this tactic, purchasing his own home through seller financing to align with his specific goals.
To ensure a seamless execution of this approach, he underscores the necessity of legal consultation, particularly if navigating contracts without the involvement of a reputable title company. While acknowledging that consulting an agent is beneficial, Jack cautiously highlights the potential disparities in expertise among agents in handling complex financial arrangements. His advice hinges on having a thorough understanding of the process, substantial expertise, and a strong professional network to navigate such intricate maneuvers effectively.
Check out Jake Davis:
Facebook Business Page: https://www.facebook.com/ohanarealtors
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