Athens Area Real Estate Blog

One Website Says; “Buy Athens Now!”

2008-11-25T22:26:09Z

Athens Georgia has a Real Estate Team built for Home Buyers of all kinds located at http://www.BuyAthensNow.com. The purpose of this website is to Feature Buyer Concierge and Real Estate Rewards Programs in addition to focusing on sole Buyer Representation by the Hank Bailey Team at Keller Williams Greater Athens.

If you keep up with my Blog posts you will know that I have a deep belief that Buyers need to understand Buyer Representation as necessary through educating them on Real Estate Agency Law. It seems that many Home Buyers I meet have only a fuzzy concept at best as to how Buyer’s Representation works. Many feel as if they are going to get a “better deal” if they work directly with a seller, seller’s agent, or builder.

What they at times optimistically forget is that the seller and seller’s agent is looking out for everyone’s best interest in the transaction “except” the Buyer.

Take a look at this site. The name of it, BuyAthensNow is intended to also emphasize that now is a good time to start looking into purchasing property in Athens GA.

Have a Great Thanksgiving!

Search for "Green" Property Listings in the Greater Athens Area

2008-11-24T12:12:27Z

If you have a desire to find properties that are "Green" and enjoy the thought of "Green Living" in Athens GA Area, try searching the Web for "Green" Properties at http://www.athensgahomesforsale.com. Click on the "Property Search" tab on the tool bar on the left side of your screen. If you have any questions regarding the "how-to's" of the search for "Green" real estate please email me and I will be happy to assist you!

Buyer's Agency in Athens, Ga; Concierge Program and Buyer Rewards

2008-11-24T11:45:03Z

Located at www.athensgahomesforsale.com, home buyers will find an unparalleled service called the Buyer Concierge and Real Estate Rewards Program!

Before the creation of the internet finding a home was an even more lengthy and costly process. You and your Realtor who would spend a great deal of time looking at property listings, and home shopping meant driving around for hours, days, weeks, and even months walking countless properties!

Today with close to 80% of buyers using the internet to do housing searches, not only is it much easier, but the process allows us to use time for more effectively by not having to spend valuable time driving around viewing properties that don’t meet your objectives. By searching online, you as a Buyer happen to be doing some of the work. If you do the research and preview properties online, you as the buyer should be rewarded. This offer is not available to those buyers currently in a buyer’s representation agreement with another broker or Realtor. There are also other details outlined and full eligibility described on the site.

Check out this page. You will find it on the tool bar positioned on the left side of the website. I assure you it will be worth registering to find out how it works! Registration is painless, only asking for your name, phone number, and email address. Once registered you can view the details of this program and you will receive a questionnaire to aid me in the search for a property that meets your objectives.

Athens GA Networking

2008-11-23T12:48:52Z

Athens Georgia Networking Group; Linkedin

If you are looking for a place to network with other professionals in the Athens Georgia area, look not further. You are cordially invited to join the Athens Area Networking InGroup on LinkedIn.com. Joining will allow you to find and contact other Athens Networking Group members on LinkedIn. This is an online presence for The Athens Area Business Network, which connects both local and regional in-person and online events and resources. Our LinkedIn group is open to networkers predominantly in Athens, Atlanta, and the Southeast. Come join us! The goal of this group is to help members:

Reach other members of the Athens Area Networking InGroup

Accelerate careers/business through referrals from Athens Area Networking InGroup members

Know more than a name – view rich professional profiles from fellow Athens Area Networking InGroup members . On the online site there are places to share, post discussion or “brain storming questions,” post and review news, and receive updates on member topics.

Here’s the link to join:
http://www.linkedin.com/e/gis/149446/527C63466651

Hope to see you in the group! We also have a monthly get together at Panera Bread posted on the Discussion Board at Linkedin. We are also bringing the online presence down to “reality” by providing a venue for members to meet face to face to build relationships faster and provide a place where members can discuss what they do for a living, what their business is and what types of prospective clients they are looking for so that other members can be aware of how to help each other on a referral basis. Oh, and there is no membership fees or dues. This is a group of like-minded professionals who meet together simply to help each other’s businesses grow!

Hank Bailey, Associate Broker Keller Williams Athens, a neat new web idea called Eyejot.com.

2008-11-04T14:24:07Z

Lately I am hearing more and more people who want something more than words as they read an endless stream of blogs and look at Realtor websites by the hundreds, if not thousands, that look so much the same that they must have come off the same shelf. They want video. They want to see the author of the blog or the Realtor on the website and hear the words coming out of their mouth before they commit!

Today I found a neat website that would provide such a service. Eyejot.com. You can post a still shot and video in your profile. You can email people video. The best part about it is that it is all for free!

Please check out my link at http://eyejot.com/users/Hankbailey.

Home prices by Area; Trulia Heat Maps are another great tool to use to start your search

2008-10-31T08:10:53Z

If you are new to an area, there is another tool you can use to gauge home values to possibly help narrow your search. You may want to also feed the "inner Capitalist" or Investor in you and attempt to maximize your return. Trulia Heat Maps allow you to compare prices and popularity by neighborhood (in larger metro areas), city, county, and state. This can allow you to gauge market trends based on listing and sales prices. As you may know, the three "L's" of real estate are "location, location, location," this also may help you determine the most popular area for home buyers in a given market.

Check out http://www.trulia.com/home_prices/Georgia/ to start your search.

Prelisting Inspections; Gaining that Edge

2008-10-30T09:24:35Z

This is a sore subject to many a home seller today. When their Realtor brings up the additional "cost" of getting a home inspection done prior to listing thoughts run through many a seller's mind of the cost to do the inspection not to mention the concerns over what hidden defects (or not so hidden to the property owner) might come out that will result in the loss of more hard earned equity from the Home Inspectors report.

In the buyer's market we find ourselves in however with 10 months of inventory for sale and so many new homes on the market, I always recommend to my seller clients to get a home inspection done prior to listing it for sale to get an edge on their competition.

What no seller wants is to have a buyer through their home inspection, after a long sought after contract is finally at hand, find defects no matter how big or small especially if the disclosure statement provided by the seller showed a clean home with no issues. This causes questions in the buyer's mind of "well what else are they not disclosing and what is the cost to repair?"

Recently I found a situation where a home closing almost went south due to a roof leak which could have been fixed for $300 but went in disrepair for no one knows how long until after the home inspector for the buyer pointed it out. Whether the transaction closes is anyone's guess, but in the buyer's mind they instantly had justifiable concerns over mold, rot, and anything associated with these issues. Are there any other issues with the home related to the leak? No one knows, but that is my point. The unknown issue is the one that will kill a home sale. The seller not fixing the issue and not having a home inspection to reveal the $300 patch job the roof needed ahead of time has created an issue. (Paint buckets in the attic kind of caused questions as well.)

Most people are not contractors and don't have enough experience to know what repairs or fixes cost. Therefore in most potential buyer's minds, a repair that in reality only costs a few hundred dollars might cost "thousands." These problems that arise could also potentially push the home's sale price down during negotiation. A seller may discover from a prelisting home inspection that support beams that that support a ceiling or the roof were improperly installed. The seller may choose to repair the support beams, rather than having the problem become a price negotiating tool. For example, paying $5,000 for the repair makes more sense than losing $10,000in the sale. The seller and their real estate professional also have the option of getting a quote for the cost of the work, putting it in the file with the more accurately completed disclosure statement to show what the real cost is to repair, and then price the house accordingly.

In the end, you don't want to leave yourself exposed as a seller and you need that extra edge. One home inspection company I spoke to locally, Homepro Home Inspections of Athens, has a page on their website devoted to "Pre-Inspected Homes for Sale." This difference maker that results in the taking away of doubt in a buyer's mind, may just get that offer over your competition!

Real Estate Auctions; Trend or Fad?

2008-10-27T12:38:07Z

As the real estate landscape evolves, more and more home buyers and sellers are using auctions as an alternative to traditional home buying.

Real estate auctions continue to be one of the fastest growing sectors of the auction market. According to the National Auctioneers Association, residential auctions generated $17 billion last year alone.

For sellers, auctions can translate into immediate cash and no long-term carrying costs. Buyers can save time and money. A listing can typically sell within 9-12 minutes.

Locally, it seems that while there are auction companies out there, the trend seems to be on the downward slope. Costs involved with auctions, unlike a listing, revolve around advertising. The seller in addition to listing the property for a traditional commission must also pay upfront advertising costs that the auctioneer needs to advertise the auction. These costs can run as little as $5,000 and as much as $15,000 or more. Auctioneers I have spoken to recently have told me that they would not take my money right now as in their opinion the auction market is a slippery slope at best. The last auctioneer conveyed that in his last held auction there were no buyers who showed up. That's right. After the seller spent almost $10,000 on advertising through the auctioneer's firm, the only people who showed up were other nosy neighbors and Realtors.

On a side note, one reason turnout was probably bad was because the weather did not cooperate the day of the auction. Therein is the other issue. If you as a seller spend $10,000 advertising an auction for a certain Saturday, you have that auction on that Saturday whether or not you have sun, rain, or snow. With 10 months or more of inventory in many areas including our own, in the midst of a buyers market, on a day where the weather does not cooperate you don't have many buyers interested enough to brave the elements for "one more auction" or perceived distressed sale as there are so many to pick from in this market.

Rising Commodities Lift all Homes

2008-10-27T12:26:07Z

Home prices tend to rise with commodity prices over the long term. Currently, the Producer Price Index for construction is up 39 percent over the past five years, and prices for commodities like oil, copper, steel and cement are sky-high. Sooner or later the increasing costs of these raw materials will push home prices higher.

As the supreme commodity, every home is full of materials like steel, wood, and copper wiring. Presently, an oversupply of homes may be keeping prices low, but home prices are rooted in hard costs and will eventually adjust to reflect the price of production.

In many cases today, homes are being sold for less than their replacement cost. One good example of this was a property that a local home seller told me where their insurance company did an analysis based upon a very detailed custom home which came back that their replacement cost was roughly 25% more than what they take for their house in a sale, and it was almost 40% higher than tax appraisal. The issues obviously is that it seems that those homes that were custom built versus spec houses which probably had a tighter budget, are more apt have more cost with a therefore higher replacement value than they could sell the property for in the open market.

Government Rescue Bill

2008-10-27T12:15:40Z

Congress approved a massive $700 billion rescue bill earlier this month, paving the way for responsible government intervention in the financial markets, which will benefit current homeowners, potential home buyers, financial institutions, the economy, and ultimately taxpayers.

The Emergency Economic Stimulus Act of 2008 gives the U.S. government the authority to buy off troubled mortgages. This will encourage banks to refinance and reconfigure more mortgages to help many families keep their homes.

It will also introduce more money into the system, which will make financing more available and help stabilize home sales and prices. If credit markets remain tight, even families with strong credit and income might not be able to obtain a mortgage.

One Real Estate Professional commented to me, "I called my congressman, as a real estate broker to find out if I could go for a ride on this gravy train, but they still were not sure who was going to execute this program. It will end up with the treasury department." He further discussed short sells as an example of where the market is today in terms of straightening itself out from the subprime mess by stating, "This whole short sale scene is getting slower by the day. I was working on one today from the time they missed their first mortgage payment until they were ready to go to foreclosure will be 9 months. They have lived rent/mortgage free for 9 months. It is only going to get longer and we have about 6 more months for the arms to kick in before the subprime breaks were put on. I could see it taking a year and a half to go through the process in the near future. "

A Senior Asset Manager at Grubb & Ellis Realty Investors out of Denver commented, "Some of the answer is that real property assets are much less expensive now than they were in the second quarter of 2008. Its not clear what the pricing floor is. If a client has cash, now is the time to be shopping because economy mitigation efforts from governments around the world are being employed so the current "free fall" starts to be with out basis. Prices could be lower, but not, I hope, tremendously lower. "

He also provided some very good real property purchasing tools;

1) Be choosy and discerning and discriminating in acquisitions.
2) The investment horizon is at least 8 to 16 quarters.
3) Be extremely bearish in growth assumptions when building real prooperty acquisiton models because income/value growth will very slow as long as retail sales and employment are slow or non-existent.
4) Leverage to the extent that you can but terms must be fixed and the lender experienced in real property. They must be ready to live with the inconsistencies that will occur quarter to quarter. Client integrity will be important as well as committed equity partners.

He followed his kind note up with a "Best of Luck." Definitely, Best of Luck to us All.

Identify the Front Door and Win a Free Gas Card

2008-10-19T23:06:03Z

In this day of high gas prices and a battered stock market I thought it would be nice to start sponsoring a Free Gas Card contest every 30 days on my blog. The way this will work is that if you guess what historical property this door belongs to you will win a Free Gas Card.

All you have to do is make a comment to this post, and the first to answer correctly with their name, email address, and snail mail address will receive a Free Gas Card. Now think quickly because you are also competing with those subscribers on my Trulia Real Estate Blog as well! Every 30 days from the date of the initial post I will announce the winner for that month and post a new door from the Greater Athens Area for the next 30 day contest. Have fun and help me give away some Free Gas!

Mortgage Choices and Options in Today's Market

2008-10-15T09:22:30Z

There's been a lot in the news recently about delinquency problems with subprime mortgages, even though these delinquencies comprise less than 2 percent of all outstanding loans. Lenders have been tightening their underwriting standards, making it harder for some consumers to find and qualify for a mortgage. However, most home buyers still have a number of financing options.

Conventional fixed rate and traditional ARMs, offered in both the prime and subprime markets, are good choices for some first time home buyers.

Responsible nontraditional mortgages and hybrid subprime mortgages are still a choice for borrowers who can afford them. FHA and VA have recently made significant improvements to their programs that can be valuable financing tools for many home buyers.

To get a perspective on the financing choices available to those home buyers and changes they've seen in this regard over the past year I inquired of various mortgage lenders to find out the answer to a question that is plaguing the market today. Brian Smith, a Senior Loan Officer, gave me perhaps the best definition to my question.

Mr. Smith notes that there are options, but nothing like we've seen in the past few years. No one has any interest in owning Mortgage Backed Securities because when they were bundled up, there were good and bad loans in the package. The mortgage market works, like all credit markets, when there is liquidity and right now there is very little liquidity.

He further explained that mortgages fall into 3 basic categories, Government Backed mortgages (FHA, VA, USDA), Agency Backed (Fannie Mae, Freddie Mac) and Portfolio (loans typically held on the bank's books in their portfolio).

Government backed mortgages are all underwritten to very specific guidelines that require documentation of income, the source of funds for the down payment and consideration for the borrower's ability to make the mortgage payments. Government loans are "serviced" by a lender (the loan could have been brokered or sold to the lender) and either HUD (FHA), VA or USDA issues an insurance policy that explicitly backs the performance of the individual loan. If the loan fails, the lender forecloses on the property; the government pays off the outstanding mortgage and takes possession of the property. (HUD homes, VA repos)

Agency loans, Fannie/Freddie also have specific, albeit, somewhat flexible guidelines regarding income and assets. The guidelines would determine whether a loan would qualify to be "securitized" by Fannie or Freddie. The security would allow the loan to be placed in a pool and the pool sold off as a security (MBS). The lender would have Private Mortgage Insurance (PMI) to hedge against performance for loans above 80% loan to value. If the loan fails to perform, the home is foreclosed and the lender would own the property.

The portfolio option allows for the lender to determine the criteria for the loan. Those guidelines can be along the lines of Agency loans (so the loan can eventually be securitized) or whatever the risk manager deems to fit the bank's needs. Sub Prime mortgages fall into this class, as they are not underwritten to guidelines that would allow them to be included in a Fannie/Freddie or Government Backed Mortgage Bond offering.

This is where the story takes a tragic and ironic twist. Fannie and Freddie, as Government Sponsored Enterprises (GSE's) were able to have monopolistic control over the market by acting as a free market corporation while living with blessings and protection (implicit) of the federal government. Congress mandated goals for Fannie/Freddie in regards to underserved, low to moderate income borrowers and inner city areas. These mandates required Fannie/Freddie to reserve 50% of their portfolio for these markets, but Fannie couldn't keep up. Eventually, the GSE's went to Wall Street to buy Mortgage Backed Securities that served their mandate, low-to-moderate income, inner- city underserved areas. Sub Prime loans.

While some in congress were pushing for stricter oversight of the two companies, Fannie/Freddie were lobbying the likes of Barney Frank, Chuck Schumer and Barack Obama to keep the oversight to a minimum. Despite the accounting scandals, the GSE's pressed forward buying securities for loans that their own guidelines would never allow.

He finishes by denoting that all this brings us back to my question. Fixed Rate loans, from the standpoint of the secondary market, are currently considered to be the best investment, based on performance. Therefore, interest rates for Fixed Rate mortgages are in many cases lower than the "riskier" adjustable rate mortgages (risk and reward), effectively making ARM's obsolete. Portfolio lenders are having a difficult time securitizing pools of mortgages, so they are very reluctant to take on any risk. Higher down payments, higher credit requirements and stricter guidelines offset the risk. That leaves Agency and Government mortgage programs as your only alternative for decent rates, decent underwriting standards and low down payment loans.

Thank you Brian for your detailed breakdown on the subject. You can look at Brian's personal website at http://www.republic-mortgage.com/BSmith/.

Where Have All the Buyers Gone?

2008-10-14T11:54:31Z

Household formation just isn't what it used to be. Over the past two years, net job gains have increased by 4.3 million, according to both company payroll data and household survey data, and U.S. aggregate personal income has risen by $1.4 trillion. Such gains should have translated into about 2 million additional homeowners, yet only 600,000 new households were created during that time.

Over the same period, housing affordability has actually improved. Still, many people have evidently continued to rent, put off buying that first-home, or have moved back with parents and family members. Why?

According to economists with the National Association of Realtors (NAR) it is believed that buyers are hoping to time the market, waiting for lower home prices and interest rates. Foreclosure worries are also having an effect.

Being inquisitive I have wondered what housing options people are choosing - who's buying, renting, or simply holding off on that first home purchase (or that step-up purchase), and why?

My research has gone to interview Realtors® outside of our area to get a larger perspective regarding the clients they work with who are thinking about buying homes at this point versus those that have decided to stay perched on the fence and find out why.

Also, my first question for those either currently looking for a home or have chosen to postpone a home purchase is to learn about what has motivated buying decisions and what their future plans are moving forward.

One potential buyer I spoke with made the following points as to why he put plans to move or buy on hold. "I own a home currently, so I don't want to give it away. Will the market continue to drop, leaving me with a loss on my new home purchase? What if my company cuts back and I'm without a job? What if my credit takes a hit because the credit card companies lower my credit limit and I have a lower level of available credit? What if this is just the beginning of an economic downturn, and we are a long way from the bottom?"

A would-be second home buyer stated, "I am interested in buying a property in Florida. However, I will not do so for at least another year because the housing market still has further to fall in that market. Even after it hits a bottom, there will be no rush to buy, due to the huge inventory to pick from, and a shortage of credit-worthy buyers."

While we have to remember that real estate is "local," I am sure we have all heard or felt the same thoughts before ourselves. A huge potential problem that the media probably does not cover enough is the story behind getting loans to closing once they are in the lender's hands.

A Real Estate Professional summed it up rather well when she relayed a story of three recent attempted closings. "I've had 3 contracts fall apart before closing because buyers who were prequalified didn't get financing. Loan requirements changed mid-stream. I think there are a lot of buyers, especially first-time buyers, who are qualified but can't get loans because of tightening credit. It's a shame, because in many places prices have declined enough to make home ownership affordable again.

If entry level buyers could purchase some of these homes on the market, this would allow the move-up market to buy, and so on."

She hit the nail on the head on her final statement. If entry level or first-time homebuyers could purchase some of these homes on the market, this would allow the move-up buyer to buy and so on. The problem is that when lenders have such a hair trigger where "the rules change" in mid-stream due to tightening credit it crushes the housing market's ability to come out of this lull it finds itself locked into today. Keep in mind that her words stated she had "prequalified buyers" not approved buyers. This is why I always encourage people to go ahead, get a list of what your lender needs to get a full approval (the list is on my blog), and take the worry out of the equation.

So where have all the buyer's gone? They are out there. I think my would-be second home buyer summed it up best when he answered my question by stating that he had the perception as a buyer in the Florida market that it has further to fall, and even then he is not rushed due to huge inventory and a lack of credit worthy buyers who cannot get financing.

To end this column on a positive note I want to reflect on a few thoughts from a Market Analysis Report of Athens, GA I obtained recently. It states that the University of Georgia has been the foundation for the community for more than two centuries. It goes on to point out that the university is a stabilizing factor in the economy. It notes that even during recession the area is not as severely affected as other areas of the country due to a large portion of the labor force either employed by the University or dependent upon the University. Put that in perspective. Two centuries UGA has been a stabilizing force in our local economy! Can anyone tell me who was President of the United States in 1785 when UGA was founded?

We are in a bit of a sheltered market. Real Estate is local and not "national." Keep this in mind and remember that unless you are buying a second home or investment property in Florida, for example, that if you are a buyer in today's market as a first-time homebuyer or this next purchase is a step-up home for you that your next home purchase is where you and your family will personally reside. This is more than a conversation about capital gains, appreciation, and real estate. It is about your home. Your life and dreams and where you envision your life unfolding. Based upon this fact, now is a great time to buy a new home!

By the way, that question about who was President in 1785 was a trick question

HOUSING JOBS KEY TO LOCAL ECONOMIC RECOVERY SAYS THE NAHB

2008-10-14T07:08:14Z

According to the NAHB, "Job losses and declining tax revenues resulting from the deep housing slump and the decline in property values require state and local governments to consider innovative ideas to help put the housing market back on track, according to Sandy Dunn, Chairman of the National Association of Home Builders (NAHB) and a home builder from Point Pleasant, W.Va."

“Necessity is indeed the mother of invention during a financial crisis,” Dunn said. “While the federal government has stepped forward with a series of emergency actions to stabilize and restore confidence in the financial markets, it’s now time for the same sort of innovative thinking at the local and state levels where public officials are grappling with budget shortfalls that are putting a squeeze on spending for everything from schools to public safety and other essential services.”

Such creative thinking, Dunn added, could range from foregoing impact fees on new development to allowing higher density zoning to build more affordable housing and streamlining the entire development review process. It is also important that cities and counties extend existing zoning approvals while builders work out financing for new projects.

Any of these measures will help stimulate the housing sector and boost local economies. “By encouraging new development rather than penalizing it, local governments will be helping to create a new business environment that will generate jobs, stabilize property values and get the housing market back on track,” she added.

“Fifteen cents of every dollar spent in this nation is spent on housing,” Dunn said. “It is the engine that runs this country.” The importance of residential construction on local economies can be seen in a recent study by NAHB economists. The study, which looks at the impacts of single-family and multifamily home building and residential remodeling, can be found at www.housingeconomics.com.

In Athens Georgia we are glad that local Real Estate has gone to the Dawgs!

2008-10-13T15:19:26Z

Where is the housing market headed? That is a question we ask ourselves daily as the turmoil from Wall Street to Broad Street shakes the fabric of the American Dream. According to Lawrence Yun, NAR Chief Economist, "Home sales continue to edge up and down. Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings." Mr. Yun goes on to say that the recent action by the federal government in "taking over" the two GSEs could be the shot in the arm that the housing market needs.

Another factor is the attractiveness of FHA-mortgages, according to Mr. Yun. He states that FHA is taking a more active role in serving a broad cross-section of home buyers, but it will take some time to fully get up to speed. "There's been a surge in FHA mortgage applications. Interestingly, many people in high-cost areas aren't familiar with FHA programs."

Mr. Yun points out a weekly (daily) mantra on my blog and in my columns that all real estate is local, but he reminds us all that economic conditions are also local. The speed and timing of a housing and economic recovery depends on local market conditions. He notes that based on local market fundamentals, he expect robust home price growth over the next two years. He sums up his economic and housing report by stating that nationally, home sales are stable now but are expected to increase in coming quarters.

As far as local market conditions are concerned, quoting from a Market Analysis Report of Athens, GA I obtained recently it would seem we are somewhat sheltered by the University of Georgia being located right here in Athens. It states, "the University of Georgia has been the foundation for the community for more than two centuries. It goes on to point out that the university is a stabilizing factor in the economy. It notes that even during recession the area is not as severely affected as other areas of the country due to a large portion of the labor force either employed by the University or dependent upon the University." Luckily for us we are not in "ground zero" areas such as Florida or California that had truly ridiculous run ups in home values in previous years. Right now local real estate is more affordable than it has been for years. Now all it takes is for the level of inventory to be sold down through financing opportunities such as through FHA and this market will be back in order again.

Free Home Value Analysis for the Greater Athens Area

2008-10-12T15:34:41Z

o get the most accurate estimate of how much you should list your property for, you need to have a Real Estate Professional run a Comparative Market Analysis (CMA). It generally takes into account various aspects of your home, including size, features and annual costs. Reviewing comparable homes that have sold within the past year, along with the listing or asking price on current homes for sale, should help you determine a fair sale price for your property.

To update a previous post I wanted to emphasize that I am able to provide a FREE Home Value Analysis on your home or on a home your are looking at purchasing to help establish value.

Please got to the following URL http://x288170.yourkwagent.com/atj/user/CMAFormGetAction.do and fill out the form online for your FREE Home Value Analysis.

Save Green Going Green

2008-10-11T22:58:02Z

According to NAR research, 65 percent of new home buyers see their home’s energy efficiency as an important consideration.

However, the initial cost of “going green” is still a significant factor in many people’s decisions to purchase energy-efficient home features.

Today’s green-savvy home buyers and sellers have many options. Sellers whose homes meet the EPA energy efficiency standard have a valuable marketing point – EPA studies show that these homes deliver $200-$400 in savings on utility bills per year.

Buyers can use green mortgages that will help them make environmentally friendly improvements to their home. One example is an FHA-insured Energy Efficiency Mortgage (EEM) offered by HUD. Regarding Green Mortgages, the Housing and Economic Recovery Act of 2008, which few realize, contained an incentive in Section 2092 for green mortgages. Green Mortgages have been around since the 1970's although they have yet to be widely implemented. A good source for more information on green mortgages is http://www.fha.com/energy_efficient.cfm.

Another Way to Research Homes in Athens; www.hankbaileysellshomes.com

2008-10-11T11:16:31Z

Teaming up with Athensgahomesforsale.com to increase exposure for home research in the Athens Area! Banner as seen at www.theoconeeleader.com.

Mortgage Rates Drop Below 6% This Week

2008-10-10T21:39:32Z

Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) yesterday in which the 30-year fixed-rate mortgage (FRM) averaged 5.94 percent with an average 0.6 point for the week ending October 9, 2008, down from last week when it averaged 6.10 percent. Last year at this time, the 30-year FRM averaged 6.40 percent.

Subsequently the 15-year FRM this week was also down as it averaged 5.63 percent with an average 0.6 point, down from last week when it averaged 5.78 percent. A year ago at this time, the 15-year FRM averaged 6.06 percent according to Freddie Mac.

"Longer-term mortgage rates fell for the first time in three weeks, roughly following bond market yields," said Frank Nothaft, Freddie Mac vice president and chief economist. " The latest housing market data showed some pickup in home purchase activity in August. According to the National Association of Realtors, pending existing home sales in August rose 7.4 percent, and July’s figures had an upward revision, according to the National Association of Realtors.

Shades of Green

2008-10-09T18:27:36Z

Not so long ago helping the environment meant recycling plastic and newspapers, but today it has evolved into “green” thinking and extends to homes and office buildings.

According to a recent NAR survey, nine out of 10 Realtors® said their clients are interested in energy efficient features of green homes and the potential cost savings of such features. An overwhelming 90 percent agreed there will be even more interest in green building practices a year from now.

The U.S. Green Building Council believes this is an industry trend, rather than a passing fad; not only does it save on energy costs, but also it’s better for residents’ health and increases worker productivity.

Which green features are most important to to people today? According to the American Association of Home Builders, the green segment of the construction industry is expected to climb from 2 percent of all housing starts in 2005 to between 5 and 10 percent in 2010.

"Green" technologies include;

Low or No VOC Paints

Plumbing Manifolds

Bamboo Flooring

Rainwater Harvesting

The key to the conversation is that it seems there are many shades of "green," each with their own motivations and levels of commitment.

Six Selling Myths Uncovered

2008-10-09T14:23:20Z

Myth #1: You should always price your home high and negotiate down.

Truth: Pricing too high can be as bad as pricing too low. If you list too high, you'll miss out on buyers looking in the price range where your home should be. Offers may not even come in, because buyers who are interested in your home are scared off by the price and won't even take the time to look at it. By the time you correct the price and list your home at its fair market value, you will have lost that window of opportunity when your home draws the most attention from the public and real estate agents; i.e. the first 30 days that it is on the market. A well-trained real estate agent who looks out for your best interests will consult with you on your home's fair market value and different pricing strategies for the current market.

Myth #2: Minor repairs can wait until later. There are more important things to be done.

Truth: Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale. Most buyers are looking for homes that are ready for them to move into. If your home happens to attract a buyer who is willing to make repairs, he/she will begin asking for repair allowances that come out of your asking price. The amount of an allowance that you have to offer a buyer is usually more than what it would cost for you to make the repair (or hire someone to make the repair). Remember, buyers are comparing your home to other homes that are currently on the market. Your home should be inviting so that everyone who looks at it can see themselves living there.

Myth #3: Once a potential buyer sees the inside of your home, curb appeal won't matter.

Truth: Buyers probably won't make it to the inside of the home if the outside of your home does not appeal to them. Buyers and their agents often do drive-bys before deciding whether a home is worth their time to look inside. Your home's exterior must make a good first impression so that buyers are compelled to stop and come inside. All it takes is keeping the lawn mowed, shrubs and trees trimmed, gardens weeded and edged, and clutter put away.

Myth #4: Your home must be every home buyer's dream home.

Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house. There is a point where improving your home doesn't pay off. The key is to consider what competing properties feature and look like. A highly-motivated real estate agent will consult with you on what competing properties have to offer - he/she can even show you competing properties so that you can make sound home improvement decisions.

Myth #5: You are better off selling your home on your own and saving money on the commission you would have paid to a real estate agent.

Truth: Statistically, many sellers who attempt to sell their homes on their own cannot consummate the sale without the service of a real estate agent. Homeowners who succeed in selling their home by themselves usually net less than if they had a real estate agent working for them. The National Association of REALTORS_â surveys consumers every year, including homeowners who succeeded in selling their home without a real estate agent. Over 70% of these homeowners say that they would never do it again.

Myth #6: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.

Truth: You should reply immediately to an offer! When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don't want to lose the sale because you have stalled in replying.

Leading Blog Post 10 09 08 on Trulia's Surviving the Housing Crisis Page

2008-10-09T11:30:19Z

Surviving the Housing Crisis

Today, October 9, 2008

When Buying Makes Sense

2008-10-08T15:04:24Z

The housing market has never been better for many potential buyers. In fact, in many U.S. metro areas it's more affordable to buy than rent.

The National Low Income Housing Coalition reports that in 57 out of the 100 most populated metro areas, renting a three-bedroom home is more expensive than monthly costs on a six percent mortgage for a typical low-priced house in the same area.

Of course, buyers with strong credit are best positioned to take advantage of today's opportunities. A high credit score will yield a lower interest rate and increase the likelihood that a loan application will be approved.

For example, a buyer with a 6 percent mortgage will pay a third less per month than a buyer who has a loan at 8 percent. This difference can be hundreds of dollars per month.

As a Realtor® I have had the opportunity of interviewing former renters who recently became homeowners to learn what factors influenced their decision to buy instead of continuing to rent.

The top reasons that seem to arise as to why you should own your own home usually begin with tax breaks. The Tax Code allows a deduction of the interest paid on your mortgage, your property taxes, as well as some of the costs involved in buying your home such as points.

Also, as you build equity in your home you have a ready-made "currently tax-free" savings plan. When you sell, you can take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax. This can be taken advantage of through the sale of your primary residence every two (2) years.

Depending on what area of the country I made this next statement I might be run out of town on a rail, but real estate has long-term, stable growth in value. That's right. In the long-run appreciation has been a constant in the housing market.

While yearly price fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

Let me refer you back to my column a few weeks ago entitled, "A ‘Case' of Exaggeration," where I referred to MSN Money Staff figures that showed our area actually was the 15^th best performing market according to MSN in the past year compared to 300 other metro areas in the United States with appreciation during the last one, three, and five-year periods through June of this year.

The next reason that my clients have told me that they decided to buy versus rent is that money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.

Unlike the life of a tenant where rent payments can and usually do go up, your fixed-mortgage payments don't rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

Finally, the biggest benefit I hear from former renters is the ability to remain in one neighborhood for several years which gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

In the end, the advantages seem to outweigh any disadvantages. Homeownership is still the American Dream. At least it is in the Greater Athens area!

Surviving the Housing Crisis Featured Blog Post

2008-10-08T14:57:51Z

Hank has a blog post about Preparing a Mortgage Checklist which is a featured post on Trulia's new "Surviving the Housing Crisis" page which includes Top Housing Market Stories, News, Tips, and the Latest Blog Posts and Questions. Also contains area on the Page to ask questions, get advice, and do real estate searches.

http://trulia.com/voices/marketcrisis/

How Much Home can you Afford?

2008-10-08T14:03:19Z

The single most important part of buying a house is figuring out how much you can realistically afford to pay. You'll have to take a good look at your budget, debts, credit reports, and credit score (check out myfico.com). Once you have a good picture of your financial status, start saving as much money as you can for a down payment, closing costs and other extra expenses that come along with buying a house. Extra expenses could include paying for a home inspection (around $200 - $350 depending on where you live) or hiring a moving company after the sale is final.

Depending on the condition of your finances -- if you have a lot of debt, errors on your credit report, or a low credit score -- getting ready financially could take six to 12 months or more! If your credit score falls below 680, lenders may see you as a risky borrower. It might be worth your time to take a year and work on building a better credit report before taking on the responsibility of a mortgage. Also, if you qualify for a lower interest rate you could save thousands of dollars over the life of the loan. Be wary of companies that offer to repair your credit for a fee. There are exceptions. FHA has come to the rescue by providing loan guidelines that allow low down payment loans with comparable rates to "conventional" mortgages for first time homebuyers.

There are a few basic formulas commonly used by lenders to determine how much of a mortgage you can reasonably afford. These formulas are called qualifying ratios because they estimate the amount of money you should spend on mortgage payments in relation to your income and other expenses. It is important to remember that these ratios may vary from lender to lender and each application is handled on an individual basis, so the guidelines are just that - guidelines.

Generally speaking, to qualify for conventional loans, housing expenses should not exceed 26 to 28 percent of your gross monthly income. Monthly housing costs include the mortgage principal, interest, taxes and insurance.

For example, if your annual income is $60,000, your gross monthly income is $5,000 and $5,000 x 28 percent = $1,400. So you would probably qualify for a conventional home loan that requires monthly payments of $1,400.

IT IS IMPORTANT THAT YOU SELECT A HOME THAT WILL MEET YOUR FAMILY'S NEEDS AND KEEP YOU HAPPY FOR YEARS TO COME.

When budgeting to buy a home, it is important to allow enough money for additional expenses such as maintenance and utilities. If you are purchasing an existing home, gather utility cost averages and maintenance costs from previous owners or tenants to help you better prepare for homeownership.

Generally speaking, if your finances are in decent shape, you could look for a home priced at two to three times your gross yearly salary. And while using mortgage calculators can give you a rough idea of how large of a mortgage you might qualify for, talking to a lender in person will give you a more accurate figure.

Tax Benefits of Homeownership

The tax deductions you're eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here's how it works.

Assume:

$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

The tax deduction is a difference you also have to take into consideration, especially if you are currently renting. Because of tax deductions, you can make a mortgage payment - including taxes and insurance - that is approximately one-third larger than your current rent payment and end up with the same amount of income.

In the end, consult a mortgage or other lending professional who you trust. Get their input before you start house shopping. Then you will be ahead of the curve and more able to make a stronger more confident offer when that right property appears with an approval letter in hand.