the wells team: Spend More Time on the Financing! - 05/17/12 03:28 PM
Financing has become the make or break factor for many real estate transactions.
As important as it is to the overall purchase of a home we are seeing less time spent on the actual specifics of financing.
Today we had a one hour class taught by one of our mortgage brokers. She wanted to review a Pre-App Worksheet, HUD form, and various funding fees for conventional, USDA, FHA, and VA mortgages.
Did you know?
· On an FHA loan that the maximum contribution from a seller, for closing cost, is 6% of the purchase price?
· A lender can pay … (0 comments)
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the wells team: We Learn from our Clients: The Art of Negotiations! - 04/07/12 08:03 AM
A great part of this job is the ability to learn from our clients.
Our last education involved the art of negotiations. The ironic thing is that as much experience as my client had in sales negotiations ultimately the deal fell through.
We received an offer from the buyer’s agent. This buyer had been in the home numerous times but had a very difficult time making a decision on whether to put an offer on the home or another property. After a lot of assistance from her family, agent, and financial planner the buyer placed an offer on the home. We … (6 comments)
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the wells team: Want to Build a Home? Bring Cash! - 03/23/12 05:48 PM
Want to build a home? Better bring cash!
We have been working on information for a client concerning a construction loan. If you have not tried to acquire a construction loan in a while you are in for a rude awakening.
For a lot and home totaling approximately $420,000 we found out the following:
The lot has to be purchased usually for cash. There is no longer temp to perm loans Therefore two closings occur Requires 30% down payment Takes 30-45 days to close Buyer and bank determine draws Monthly interest payments are made on the draws as they … (2 comments)
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the wells team: If you dont want to hear the answer.... - 03/01/12 06:18 PM
Feedback is an important tool in the marketing and sale of a home. The Wells Team places a lot of importance in feedback as we work with our clients. We work hard to get feedback from other agents while we are very forthcoming with feedback on homes that we show buyers.
Recently we were showing higher priced Lake Lanier properties. ($450,000 to $650,000). My partner had a request to give feedback on one such property. Her answers were honest and professional based on her buyers opinion.
Comments included:
Hand prints, from finger paint, on the garage doors Kitchen Counter tops … (5 comments)
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the wells team: MOLD! A Four Letter Word - 02/04/12 08:13 PM
I bring up the subject of mold because we just dealt with this situation. Please read our prior blog entitled "We Know What We Are Doing".
What I have learned about mold is that the very word sounds off alarm bells with most people. Realtors have placed mold with synthetic stucco and for sale by owner as terms we hate to discuss.
Here is what I will say about mold:
Take the time to check your homeowners insurance to see if you have mold coverage If you suspect mold in your home call at least three certified experts to discuss optionos. … (0 comments)
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the wells team: We Know What We Are Doing! - 02/04/12 08:11 PM
I have had to emphasize this point for many years: THIS IS OUR PROFESSION.
My partner Barb and I have had the pleasure to work with many well educated, business savvy, experienced clients. Some of them have bought and sold more houses than I have!
However after 7 years of success in this real estate market we can say with confidence that we know what we are doing.
Recently we had a client who was dealing with a possible mold issue in a home that he was lease/purchasing. A water leak occurred in the bathroom (nail in a pipe). The homeowner … (0 comments)
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the wells team: The Payroll Tax and Increase in Mortgage Fees - 01/12/12 10:26 PM
Another tax is going to be implemented on real estate starting January 1st.
In order to cover the two month "payroll tax holiday" fees will be increased on government backed mortgages from Fannie Mae and Freddie Mac.
The fee will be an additional 0.1 "surcharge" paid monthly on mortgages from both government backed institutions.
A typical $200,000 mortgage will see an approximate increase of $17 per month.
The Payroll Tax is used to fund Social Security. A two month "tax holiday" will take around $33 billion dollars away from the Social Security Trust Fund.
Bottom line: There is not free ride. … (0 comments)
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the wells team: GAR Contract Changes for 2012 - 01/12/12 10:21 PM
We just completed our 2012 GAR (Georgia Association of Realtors) contract class.Every year we go through this class as GAR continually refines our contracts. Every change helps our buyers and sellers and the amount of protection we offer them in their real estate transaction. The biggest change to the GAR contracts is in reference to access to the actual contracts. Starting this month there some new procedures in place.Real estate agents, who are members of the National association of Realtors and GAR, will continue to have full access to all GAR forms. However if an agent is not a member of … (0 comments)
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the wells team: Obama Health Care Plan and an Additional Real Estate Tax - 01/12/12 04:48 PM
I just received an email from my Dad about a real estate tax that would be part of the Obama Health Care plan.
Beginning January 1, 2013, ObamaCare imposes a 3.8% Medicare tax on unearned income of “high-income” taxpayers which could apply to proceeds from the sale of single family homes, townhouses, co-ops, condominiums, and even rental income, depending on your individual circumstances and any capital gains tax exclusions. Importantly, the “high income” thresholds are not indexed for inflation so will reach increasing numbers of middle-class taxpayers over time.
I have attached two links to the National Association of Realtors website. … (0 comments)
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the wells team: New Years Predictions: None! - 01/02/12 08:02 AM
After seven years in the real estate industry it would be safe to say that we have an idea what is going on in our local real estate market.
Instead of making bold 2012 real estate predictions I have decided to decline.
Why?
Because every other real estate agent, real estate company, and professional organization has already published theirs! My clients have read some of them but not many.
So my crystal ball stays in the closet with my ouija board, rabbits foot, and all other prognosticating devices that I own.
All I tell my clients is to be realistic and … (3 comments)
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the wells team: I Have to Practice What I Preach! - 12/12/11 10:51 PM
It is easy to give advice to clients, friends, and family when it does not directly affect you. In this situation I had to practice what I preached.My family has owned a condo in Florida for over five years. We bought this condo to enjoy with our family not as an investment. Then the housing market collapsed. The result: The market value of the property went down by 53% After three attempts at a short sale, loan modifications, and refinancing, we were at a crossroads. Do we continue to put money into the property or cut our losses and move on?It … (2 comments)
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the wells team: They Took the Doors - 12/12/11 09:55 PM
This market continues to amaze us. It forces people into irrational behavior. Take the case of the latest home to go into foreclosure in my neighborhood. The home had been for sale approximately two years. A custom built home with upgraded appliances, light fixtures, and a pair of handmade antique front doors.
Needless to say the home was advertised for foreclosure at the beginning of December. Our team put a short sale offer on the home two weeks before it was to go into foreclosure. At that point the "owners" had taken the appliances, and changed out the light fixtures. We … (5 comments)
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the wells team: Lake Lanier! You are killing me! - 11/19/11 07:00 PM
For all of us "locals", we are all very familiar with Lake Lanier and its ever changing water levels.
As of today Lake Lanier was down over 14 feet!
What does that have to do with a real estate agent who sells Lake Lanier property? I think you know the answer.
We had been working with a client for over six months. We had showed them Lake Lanier property and knew their desire to live in our area. We were waiting for them to sell their Florida home.
You probably know how this turned out. Our clients had sold their Florida home however … (3 comments)
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the wells team: Why I Did Not File the Deed! - 11/19/11 06:21 PM
After six years I still learn something new everyday!
I have a client who is buying a home from a seller who purchased the home on the courthouse steps. The seller, with his investment group, paid cash for the property.
As we finalized the agreement with the seller we did negotiate with one disadvantage. We did not know what the seller paid for the home. Why? Because the seller had not filed the deed with the county!
After we finalized the agreement I brought up this point with the seller. The seller waited to file the deed because he did not … (4 comments)
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the wells team: Ten Trends from The Norton Agency - 11/19/11 06:03 PM
We had the opportunity to attend The Norton Agency Advanced Seminar last week. Our President, Frank Norton Jr, gave us a lot of statistics, information, and trends for the national and local real estate market.
Top ten trends, for our area, as identified by The Norton Agency
Expect no upward swing (in regards to prices) Foreclosures have run their course in Georgia Lending is invisible (more lending alternatives) Cash is piled up on the sidelines (folks in a holding pattern) Value price is in Healthcare sector is pumping Agriculture is back (demand for small farms) Function before glamour (in regards to … (2 comments)
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the wells team: Frustration with Appraisals! - 11/19/11 05:47 PM
I know every agent in this country is feeling the same pain that I feel when it comes to appraisals!
At my weekly Rotary Club meeting I had a friend share his frustration. He recently had his home appraised for refinancing.
His frustration was in the fact that, in his opinion, the appraiser had no idea about the details of the home. When my friend had his home built he spared no expense. Extra insulation, upgraded hardwoods, top of the line fixtures, counter-tops, and extra energy efficiencies throughout.
In a normal market all of these upgrades would weigh on the price … (5 comments)
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the wells team: HUD Temporary Extension on FHA's Property Flipping Exemption - 11/07/11 11:39 AM
A couple of points:The FHA is extending the availability of the temporary waiver of its regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, until December 31, 2011To use an FHA loan on a home that is being flipped: All transactions must be an arms-length transaction. The home cannot have a pattern of previous flipping activity as evidenced by multiple title transfers within the last 12 months. The property must be marketed open and fairly. If the property is being sold for more than 20% of … (1 comments)
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the wells team: A Wasteful Effort - 11/07/11 11:00 AM
This recently happened to a friend of mine in the Atlanta area.
A large lending institution advertised that they would be in Atlanta to assist people in modifying, or refinancing, their existing mortgages. Part of this program was a result of the new initiatives passed at the White House.
My friend went online to make an appointment to meet with the lender. No appointments were available. My friend then went to downtown Atlanta on the day of the event to wait in line for three hours! After a long wait my friend finally met with a lender representative. This was one … (0 comments)
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the wells team: The Difficulty of Moving Up a Closing - 10/08/11 12:17 AM
Your buyer is anxious to move up the closing. The lender says that they are ready, the buyer is ready, BUT: This is a short sale or a foreclosure!
What does that mean?
It means that the lender has to approve the HUD 48 hours prior to closing. It means having the HUD perfect. It means waiting for the title to arrive, via courier, to the attorney.
When The Wells Team works with a buyer or seller in this situation we become a second set of attorneys. We check on the status of financing, liens, paperwork from the selling institution, paperwork from … (0 comments)
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the wells team: Realtionships Still Work - 10/07/11 11:51 PM
We were approached by a company offering an internet lead capture system.
I know that they are great systems but The Wells Team obtains their business the old fashioned way: Personal Realtionships.
We are going to have a successful year despite the tough real estate market. The majority of our business is from personal relationships.
The Wells Team has made it a point to be active in the local community, participate in local organizations, and donate to local groups that need assistance.
I realize this is very basic but, after six years in the business, relationships remain a fundamental part of … (1 comments)
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