Athens Georgia Homes - Athens GA MLS Search

“How do I Get an Offer on My Home?”

2009-10-15T07:23:00.000-04:00

Posted on July 31, 2008 by hankbailey

Whether you have had tried to sale your house for a week, month, or a year this question comes up all the time. My initial advice to sellers is to make sure they price their home correctly. Set a price at the median of your property’s realistic price range. How do you accomplish this? Get an appraisal. I know, I know. It cost money, but leaving money on the table from pricing your home too low or making interest payments, paying taxes, insurance, and paying for maintenance on a home from over pricing your house to begin with will cost you far more than the appraisal in the long run. An appraisal will give you current sales comparables to help you determine a high and a low for your neighborhood. If you price your home right, it will sell.

Beyond this you must prepare for visits from potential buyers. Get your house market ready at least two or three weeks before you begin showing it. Think about this process as if you were walking up to your front door for the first time. Is the hardware on your front door tarnished and scratched up? Is the finish in “vogue” at the present or is it out of style? Look at new homes that are on the market in the price range of your home. If all of them have oil rubbed bronze front door hardware, for example, and you have a brass front door knob it may make sense to bring your door hardware up to date with current styles or finishes. For many people they like the idea of buying a new home. Make your house feel like new.

Remember that placing a pot of seasonal flowers (or a small evergreen in winter) on your porch is not only a good idea when you are entertaining, but also when you are selling your house. Edge the grass around walkways and trees. Keep your garden tools and hoses out of sight. Keep clutter such as toys and yard art cleared from the lawn. I have even had sellers buy a new mailbox, and upgrade outside lighting in an attempt to add curb appeal. As far as outside lighting is concerned, it can be done rather inexpensively today. Make sure you buy a new doormat for the outside of your front door. Put a basket with disposable “shoe covers” right inside the door to show that you care for your home. Also, nothing says “home” like a seasonal wreath on your door. Even something simple like house numbers should be either polished or replaced.

Repair any cracks in the driveway. This is a suggestion I normally give. I am actually more concerned however with cracks in a basement slab than I am with cracks in the driveway. People from the Northeast who move into our area are more aware of Radon than we Southerners. Cracks in the basement slab might be a problem to them that could either cause a contract to fall apart or cause a hiccup during the due diligence process. Be mindful of fixing anything that could cause a hindrance to a sale.

On the interior of your home I would start with removing clutter and cleaning off counters. Keep everything extra clean. A clean house will make a strong first impression and send a message to buyers that the home has been well-cared for. Get rid of smells. Remember that some air fresheners “mask” smells. I previewed a house recently where the air freshener intended to hide dog odors was far more offensive than the dog could have been on its own. This means when in doubt, have the carpet professionally cleaned.

Brighten your rooms by putting higher wattage bulbs in light fixtures to brighten up rooms and basements. Also, don’t disregard minor repairs. You want the house to show as “like new” as possible. If you ask most closing attorneys in town they will tell you that a 5 year-old house in our area is “outdated” now a days with new construction inventory on the market. Your house needs to feel like a “new home.”

You need to set the scene by making centerpieces for your tables. From nicer than every day table settings and candles to creating other vignettes throughout the home you are helping buyers picture living there. You don’t need to pay the extravagant pricing for a Home Staging Company to do what you can do yourself with a little forethought.

Replace heavy curtains with sheer ones that let in more light, and show off the view, if you have one. It should go without saying, but make sure windows are cleaned, inside and outside.

Finally, make the bathrooms feel luxurious. A tip, any good Home Stager always stages the bathrooms. You as the homeowner should do no differently.

Make sure you are flexible about showings. It’s often disruptive to have a house ready to show at the spur of the moment. But the more amenable you can be about letting people see your home, the sooner you’ll find a buyer.  

As you start the showing process make sure you anticipate the offers. Decide in advance what price and terms you’ll find acceptable.   Lastly, and this is hard for most of us to accept if we feel we have priced our house correctly to begin with, don’t refuse to drop the price. If your home has been on the market for more than 60 days without an offer and selling season is drawing to a close, you should be prepared to at least consider lowering your asking price. This is one reason I mentioned to price your house in the median price range per your appraisal. This gives you room to move lower without feeling as if you gave something away.

In summary, if you take my initial advice and price your home correctly it will sell, but it takes painting the picture to help a buyer envision themselves in your home to procure a contract!

A Home Shopper’s Wish Lists

2009-10-10T07:22:00.000-04:00

Shopping for a home is an exciting adventure and it’s easy to get lost in a sea of dazzling for-sale homes and all of their fabulous amenities – which can cause you to temporarily forget that a large backyard is your top priority. To keep yourself focused, take time to identify and organize exactly what you’re looking for in a home by creating thorough “must-have” and “wish” lists before you begin home shopping. You may also want to make a third list that details your dislikes.

To get started ask yourself these questions: Which items and features must your home have? Which items and features would you like to have, but could live without? What would your dream house include, and what features or issues must you avoid?

For the must-have list, try to focus on essentials and hard-to-change details, like a home’s layout. If you must have a three-bedroom, two-bath house, put it on the list. Ranking your must-haves in order of importance is also a good idea.

Hard-to-change, must-have features can include the type of house, for example, a two-story colonial or a sprawling rancher; the number of rooms or square footage; the home’s proximity to shopping; or its overall condition. Your must-have list can’t be too detailed because it aims to itemize the features that are most important to you and your family.

Your wish list is the flexible and fun list. Wish lists are good for cosmetic features that would be great to have, but that can be changed. Hardwood floors can replace old wall-to-wall carpeting. If the yard is large enough and has adequate open space, a pool can be installed later, and landscaping can be a work in progress. Since the wish list is a secondary, there are no limits so be sure to also include your dream amenities.

While compiling your lists, don’t hesitate to confer with your real estate professional, who is a great resource for information about neighborhoods, homes and other pertinent “must-have” information.

Once you have determined your must-haves and optional features, create a checklist to take with you during your home tours. Besides helping you stay focused, it will provide an organized review of each house.

Your lists will most likely change as you tour homes and see what the market really has to offer. It’s also unlikely that one house will include all of your must-have features. But, your efforts will be well worth it once you find the perfect house that includes just enough must-haves and even a few wishes. Your perfect home might not include that must-have basement, but its view may be a dream home come true!

5 Questions to Always ask any Lender

2009-10-08T14:02:00.004-04:00

Buying a home for most people is the single biggest investment of their lifetime. That being said, it is extremely important for all buyers to have criteria they use in choosing their lender who will be responsible for getting them into a loan that best fits their needs. As you know, a reliable lender makes all the difference in the world when it comes to the loan process.

1) Does my lender have reputation of closing loans promptly and working with my agent, ensuring a personal commitment of accountability to closing my loan as quoted and on time?

2) Does my lender have access to real-time quotes from dozens lending sources to guarantee me the most competitive rate that is available in the market place?

3) Does my lender commit to returning my phone calls quickly and to counsel with me regarding all the loan options available to me, while keeping my highest financial objectives in mind?

4) Does my lender have a team of experienced mortgage professionals surrounding them to provide support and problem solve quickly on a local level, including the ability to use local appraisers?

5) Does my lender have complete control of my loan with local in-house processing, underwriting, closing and funding?

Feel free to contact me at any time for any reason as I am always available.
Provided by Russ Tanner of Adams and Associates Residential Lending Group
www.RussTannerLoans.com

Why Won't My House Sell?!?!

2009-10-06T17:18:00.003-04:00

You have Heard that "Cash is King," well "Price rules the Roost." In many if not most cases, the reason a property doesn't sell is price. In the market we find ourselves in today you can price a home correctly at the inception of listing your home for sale, but if you're in the wrong price point your property won't sell. The reason? The credit crunch on jumbo properties and high inventory levels.

When talking home sales in the sub-$200,000 range, first time buyers have kept this segment of the market alive due to the first time buyer tax credit of $8,000. Higher-end homes that require "Step-up Buyers" which are generally homes that require financing over "conforming limits," are piling up on the market and inventory levels are growing in certain areas of the marketplace.

In many areas the highest loan amount you can obtain for a conforming loan is $417,000. Therefore if your property is priced more than $450,000, one key reason it may not be selling is that buyers are unable to obtain financing. I mentioned the words "Step-up Buyer" a minute ago. In this price range properties are definitely step-up properties where buyers may also have a home to sell before they can purchase your home. Compounded is this problem for the Step-up Market in that a high percentage of sellers today have no equity in their current homes. This can render the Step-up market all but impotent.

Does your house show "like new" or is it a train wreck? How is the curb appeal? Does the exterior need pressure washing? Is clutter all you see? Then your potential buyers are seeing it too. START LOOKING at your home in the eyes of a buyer. Remember your objective is to help the buyer your home as "their home."

Real estate comes down to three things: "location, location, location." If you have bought on the wrong side of town, a neighborhood full of foreclosures, or just a bad lot, at this point there is not much you can do about property location. You CAN make sure the price is adjusted accordingly based on the location. "Now wait, wait, wait Hank." I can hear the objections coming. Yes, adjust your price based upon a lesser location. For example, if homes in a given subdivision are priced at $120,000-$130,000 and your home sits on a lot off the entrance of the subdivision and backs up to another main road, then you should adjust down the price of your property. IT WILL NOT sell for what an interior property that backs up to trees might sell for in this market. Not with 12-13 months of inventory on the market for sale. Buyers have too much to pick from and your home will sit if you price it with the other listings in the neighborhood.

Do you, if selling FSBO, or your Realtor have a written marketing plan? Did he or she have a virtual tour made of your property? What's more, did they do a VIDEO tour? How many photos are online? Is it less than 20? If your answers are no, no, no, and less than 10, then you have some issues. Is your home being marketed on at least 30 major Web sites? Any you have ever heard of or do online home shopping on yourself?

Is your home on Realtor.com, your local MLS, Georgia MLS, Yahoo Real Estate, Trulia and Zillow? If not, find out why and make sure your Realtor immediately gets your home marketed on these locations as they are the most-visited online real estate sites according to Hitwise.com and other traffic analytic sources. If your agent has no idea how to do this and looks cross-eyed when you mention the word "Zillow," you might need to have a heart to heart chat with them.

If you are having trouble selling your home, figure out where you are on each issue. Also, address any issue you are short on today to get your home sold as soon as possible!

Housing Leads the Way, First Time Home Buyers, and Credit Extensions

2009-10-06T15:36:00.004-04:00

Some economists have been suggesting the recession is largely over, and the U.S. economy appears to be breathing new life. A major factor in this resuscitation is the ongoing stabilization and steps toward recovery in the real estate market.

Although the past few months have shown existing-home sales on the rise, in August, sales eased slightly from July, but are still above year-ago levels. The road to recovery is still tenuous, with additional foreclosures expected to enter the market next year.

The Clock is Ticking

To take advantage of the $8,000 tax credit, buyers must close on their home by November 30.
Although efforts are currently underway to extend the tax credit into 2010, this is currently a hard deadline that is fast approaching. As a Real Estate Broker, as I speak to local home buyers I find that the looming deadline is not much of an influence on purchase decisions right now because of the assumption that the credit will be extended into the new year. In Athens we have noticed a surge in sales within the $100k-$200k price range in the last two months. How much of this is because of the credit?

In the past three (3) months I have seen personally only about 20 percent of my closed business be that of purchases by first time home buyers. This is much lower than the national average of 45 percent of sales last month according to the NAR.

In my humble opinion, we cannot afford not to extend this credit as it is probably one of the few economic "stimulus" plans that has actually pumped money into the economy. As I wrote in another blog post, "The Internal Revenue Service reports that so far 1.4 million families have benefitted from the $8,000 first-time home buyer tax credit. Projections reveal that between 1.8 to 2 million first-time buyers will take advantage of the tax credit this year, and economists estimate that approximately 350,000 of those sales were motivated exclusively because of the incentive.

The tax credit has proven to be an extremely popular incentive. It targets first-time home buyers, who currently represent about 30 percent of current market activity. In addition to benefiting buyers who take advantage of it, the tax credit also contributes to the overall health of the U.S. economy. Economists estimate that each home sale pumps an additional $63,000 into the national economy which also reveals that the housing market is vital to the survival of many different industries. The retail of goods and services like carpeting, furniture, appliances, title companies and insurance, just to name a few, depend on a healthy housing market.

The figures mentioned above would mean that for the $16 billion pumped into the tax credit from Uncle Sam, the result thus far has been a $22 billion stimulus into the economy. Not a bad return on investment!"

Contact Uncle Sam today!

Can You Afford That House?

2009-10-05T07:20:00.000-04:00

Posted on May 9, 2008 by hankbailey

Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA), depending on the consumer’s current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is about $4,167. Thirty-one percent of that is $1,292.

There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments.

However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses.

Utilities

The most obvious of additional housing expenses are utilities—gas, electricity and water. But don’t forget about telephone, trash collection, and cable or satellite bills.

Taxes

As a property owner, you are responsible for property taxes. The rate will vary from city to city. To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year’s tax assessment. Your real estate professional can help you refine these figures.

Association Dues

Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some (residential developments/subdivisions/neighborhoods) have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget.

Maintenance

You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances.
Insurance

Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars. And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance.

Remodeling/Upgrades

Unless the home you purchase is picture perfect, you’ll more than likely be adding your personal touch. Therefore, you need add to your housing budget the costs for remodeling and upgrades. According to “Remodeling Magazine’s” 2007 Cost vs. Value Report, the national average for a midrange minor kitchen remodel is $21,185; a bathroom remodel averages $15,789.
Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up.

By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.

Ideas for Selling your Home in a Slow Market

2009-10-01T07:19:00.000-04:00

Posted on May 28, 2008 by hankbailey

Consumer Reports, the trusted rater of goods and services, also offers information for homeowners through tried and true ways to quickly sell homes.

Seek representation from a REALTOR who knows the area. Seek local agents know the area. Have several of them give you a presentation to justify your home’s value and explain their marketing technique.

Know your Market. A good agent can help you understand market conditions and the latest prices because she or he has access to closed sales data before they become public records. He’ll also possibly have knowledge about the details of the sales including concessions and other giveaways that may not show up in the final price.

Give something to get something, i.e..a sale! Offer to pay toward closing costs, promise to include tangible items like a TV or new kitchen appliances or allowances toward updating paint, cabinets, etc. Consumer Reports reported sellers offering vacations, golf carts, a period of monthly condo assessment or maintenance fees, moving expenses and the first mortgage payment. Get creative. If your neighborhood does not have a pool or health club, offer a year’s membership at a community pool and club. This offers an amenity that your neighborhood might not have that a competing house selling nearby could offer through a neighborhood pool which might cost you a sale.

Obtain a home warranty. Consumer Reports said, depending upon the coverage, costs range from $250 to $400 from companies like American Home Shield and First American Home Buyers Protection Corp.

Make sure you have curb appeal. Curb appeal is a potential buyer’s first impression of your home. It should bring out a gotta-have-it desire that might make that buyer grab his or her cell phone to call for an appointment! Unmaintained landscaping, litter and “yard art” will turn people away.

Stage your home, whether it is occupied or vacant. If you have a vacant home, staging helps define each room so that your average home buyer might more clearly see your property’s potential. Obtain professional staging if you don’t have home decor talent on your own. Your home will be more appealing to a wider variety of buyers, according to Consumer Reports. Even Staging a home that has your “stuff” in it by removing clutter and cleaning house until is sparkles is part of the effort. Bad odors are turn offs. Staging can cost from hundreds to thousands of dollars but it can be worth the price and some real estate agents include some staging as part of their service so it may not cost you a dime if you push it over to the REALTORS side of the equation.

When buyers know market conditions are in their favor, expect them to let you know that they know. And don’t forget, anything in the real estate deal is negotiable so don’t leave that deal breaking kids swing set in the backyard if you don’t want it to become part of the negotiating process. Also, don’t have feelings hurt with low-ball offers. Leave emotions out of it.

Update your Listing Regularly. Consumer Reports says don’t use out-of-season photos with your listing. It tells buyers you’ve got a white elephant that isn’t moving. With browsing for housing now a common practice among buyers don’t overlook virtual tours, your own property web site or blog for your home. Also, when working with a REALTOR make sure that every 150 or so days that they renew the listing with a new MLS number. Nothing screams at REALTORs who may have a potential buyer for your property that you have a white elephant that is not moving than for them to pull from the MLS that you have had your house on the market for 200,300, 400 days or longer.

Avoid These Seller Mistakes

2009-09-29T07:14:00.000-04:00

You want to get the best price for your home, plus sell it in the least amount of time. In a buyers’ market such as the one emerging now, homes will take longer to sell. Therefore, it’s important that you make the right moves at the very beginning of your homeselling process to remain competitive. Here are some common traps that many homeowners fall into and how to avoid them.

1. Over-pricing — It’s easy to think your home is worth more than the current market may support, particularly after the long run-up in home prices. Since home prices have cooled in markets around the country, home sellers must be prepared to negotiate on price and terms, and stay flexible to other stipulations benefiting the buyer. Sellers must also keep their emotions in check during the process. After all, your home is special to you and your family, and you’re proud of the improvements you’ve made over the years. But, how does your home really stand up to the others? And are those improvements important to a potential buyer?

To determine a reasonable listing price, get sales statistics on homes in the neighborhood including listing prices and actual sales prices, how long it took for the homes to sell, and government valuation comparisons. You’ll also want a market appraisal on your property. Visit homes for sale in your area and compare what you see in terms of sales appeal.

2. Negligent Housekeeping — Buyers need to be able to envision themselves living in the home. Take a good, objective look at the condition of your home. Clean, well-kept homes with an updated appearance always stand out, and a little decorating appeal can go a long way. You don’t have to buy new furniture to create charm, but you can put toys and clutter away, freshen up paint and carpet, make the most of window coverings, and add a few key accessories in order to send out welcoming signals.

3. Failing to Fix-It — Buyers, unless they are looking for a fixer-upper, would prefer to move into a home that is in perfect or near-perfect condition. If they have to fix the roof, a broken tile floor, the garage door, worn carpet or just about anything, this may give them pause about buying. At the very least, it may lower the value of the home in the prospective buyer’s mind.

4. Not Identifying Exclusions — This can be a cause of contention just at a critical point in the sale. Be sure to specify any special sales considerations or exclusions from the fixtures and furnishings list. Generally, anything permanently fixed to the house is an asset that stays with the home after the sale. So if you intend to take your grandmother’s antique chandelier that’s hanging in the dining room, clearly specify that the chandelier is not included in the sale price.

5. Not Understanding the Agent Agreement — Your sales endeavor will go smoothest when all parties have a clear understanding of what is expected. Understand the types of agency agreements when you sign with a real estate professional or company.

Be sure to check on fees, commission percentages, marketing plans and time frames. Most importantly, get everything in writing.

From Savvy with Staging to Scintillating about Short Sales!

2009-09-25T07:00:00.000-04:00

The In's and Out's of the short sale is something of interest to buyers and of great concern to sellers today. Here is a brief eight (8) question quiz to see if you understand the process before jumping into the fray.

Several Great Links from Realtor.org

Webinars:

Smooth Short Sales: Tips from a Lender
From the 2008 REALTORS® Midyear Meetings, a lender offers advice for preventing transaction delays and preparing your clients for what lies ahead.

2008 List Issue: 4 Reasons Lenders Want to Work With You on Short Sales

If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS with MapTracks please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!

Selling Prices; FSBO vs. Agent-Listed Home Sales

2009-09-25T06:59:00.001-04:00

Source: 2009 NAR Member Profile

According to statistics from the National Association of Realtors, all sellers in the Home Buyer and Seller survey reported a median sales price of $204,900.

The survey also found that the median sales price of a for sale by owner home reported was $153,000. The median sales price of an Realtor-assisted home sale reported was $211,000. According to the Survey, "There are a number of factors that play into the sales price of a home, including whether a FSBO seller knew the home buyer. If the seller knew the buyer the median sales price reported was $150,100. Agent-assisted sales can be broken down into two categories. Those who first tried to sell their home as a FSBO and those who were only agent assisted. Those who tried to sell their home as a FSBO first had a slightly lower median sales price."

Ways to Expedite Sale

2009-09-15T06:58:00.001-04:00

As we see the end of prime "selling season" coming in the next few weeks, getting your home sold quickly remains a trial in many markets statewide. Here is some advice, and some of it is not easy to hear, but it is reality.

Cut your list price to 15 percent to 20 percent below what comparable properties are listed for in your neighborhood or surrounding area.

Spruce up the outside. Update the landscaping. Power-wash the exterior and paint the door.Anything that looks "uncared for" will appear to today's foreclosure hungry shark of a buyer as a wounded guppy in the water.

It's all about the first-time buyers. Advertise on younger consumers' favorite Web sites, such as Facebook and MySpace. Hiring a photographer to shoot the house with a wide-angle lens, extra lighting, and even do some panned shots to get that virtual tour effect is a great idea. Video that you can place on YouTube is another great idea.

Be aware of how incrementally pricing a house can make a difference. Be aware of how people shop online. For example, a $299,000 house might have a better shot of being seen at $274,900 or $249,900 in most home searches. Think of $25,000 increments and put yourself in the shoes of a buyer to see if "you" would find your house on a given home search based on how its' priced considering your home's features.

Make the deal work. Have a pre-home listing inspection done to know of any potential deal killers that may arise, get an appraisal done to make sure you are on the money regarding price so that a future buyer appraisal has less likelihood of killing a deal, offer to pay part closing costs, and throw in everything including the kitchen sink or prepay HOA fees to make it work. If you live in a neighborhood with no community pool, but there is a pool right down the street, pay for a summer membership to set yourself different than your neighboring competition.

One More Reason to Move to Athens, we are Undervalued

2009-09-09T13:23:00.004-04:00

Athens, Georgia's latest press coverage; One More Reason to Move to Athens!

"Top 10 College Towns in America," BrilliantTrips.com, Sept. 8, 2009
"15 Great Underpriced College Towns," U.S. News and World Report, September 2, 2009
"Best College Towns in America," one of 12 profiled by
Hotels and Travel Reservations, August 27, 2009

According to the article from U.S News and World Report, and based upon IHS Global Insight’s first-quarter 2009 House Prices in America report which uses population density, household income, and other data to compare a housing market's current value with where it should be on a purely statistical basis, U.S. News states that they put together a list of the top underpriced college towns.

Of Athens, they state that our “Classic City” is undervalued by 17 percent according to the IHS Global Insight data. That is “undervalued,” which if you are looking to make a move to a new lifestyle for all your tomorrows, this is one more reason why I have to encourage you to look hard at Athens, GA!

Houston: 37 percent undervalued
Atlanta: 24 percent undervalued
Bryan-College Station, Texas: 21 percent undervalued
Columbus, Ohio
: 21 percent undervalued
South Bend, Ind.: 19 percent undervalued
Ann Arbor, Mich.:19 percent undervalued.
Athens, Ga.: 17 percent undervalued
Tallahassee, Fla. : 17 percent undervalued
Gainesville, Fla.: 17 percent undervalued
Lincoln, Neb.: 16 percent undervalued
Minneapolis-St. Paul : 16 percent undervalued
Boston: 16 percent undervalued
Fayetteville, Ark: 15 percent undervalued
San Luis Obispo, Calif.: 14 percent undervalued
Columbia, Mo.: 14 percent undervalued

Distressed Property: Below Market Prices in a Bifurcated Market

2009-09-05T06:55:00.000-04:00

By Jed Smith, Managing Director, Quantitative Research, Wannasiri Chompoopet, Manager, Housing Statistics, and George Ratiu, Research Economist

The existing home sales market is currently bifurcated between distressed and non-distressed sales. Distressed sales declined to 33 percent of the market in May from a high of 49 percent in March. As part of the Realtors® Confidence Index Survey we obtain data on “discount from market,” the degree to which distressed property is being sold below the market price it would otherwise command if it were not distressed. As of May 2009, estimates are subject to an approximately 3 percent survey margin of error.

The median discount from market for foreclosures was 20 percent in May; for the time period February through May the average median discount from market was 18 percent.
The average discount from market for foreclosures was 21 percent; for the time period February through May the average discount from market was 19 percent.
The median discount from market for short sales was 12 percent; for the time period February through May, the average median discount from market was 14 percent.
The average discount from market for short sales was 17 percent; for the time period February through May, the average discount from market was 18 percent.

One issue raised by Realtors® is that of buyer confusion in terms of home values, most succinctly phrased as “Everybody wants 50 percent off due to foreclosures.” In fact, non-distressed property is actually commanding a premium relative to distressed property, other things being equal. In the case of distressed properties, real estate in physical condition that is below average market condition actually sells at an even greater discount.

"Copyright National Association of REALTORS®, Reprinted with permission."

Athens GA Home Sales, week of August 31, 2009

2009-09-04T08:36:00.004-04:00

What's sold in Athens, GA this week? As we conclude the week leading up to Labor Day 2009, this week's home sales statistics are as follows;

Statistics (16 listings)
	Low	High	Average	Median	Total
List Price	$29,900	$299,900	$145,725	$124,000	$2,331,600
Selling Price	$25,000	$250,000	$135,043	$113,122	$2,160,688
List/Sold(%)	83.36%	100.00%	93.16%	93.43%	--
Days on Market	26	567	142	110.5	--

East Athens had 11 of these sales while Five Points had three (3) and North Athens the remaining two (2) for the week. Average and median priced sales were lower than in recent weeks showing a bias toward the lower end of our market. Out of sixteen sales only three (3) were in excess of $200,000. This is typical of what we see in the Athens market with a predominate average sales price this year in the $160k range.

With 16 sales this week this would be a prorated 832 sales in a 52 week year which is off a little from the pace set in the last 30 days in Athens where we have seen 76 homes sold (988 in a year). This figure over the past month is getting more respectable. To get inventory levels down however our market needs to sell at least 100 homes a month in Athens just to start making a dent.

This same 30 day window a year ago saw 106 homes sold where 24.6 percent of homes sold were in excess of $200,000 (versus 18 percent this year). This still shows a stagnation in sales over $200k in our area.

The good news is that we had a good month. After the most recent 12 months sales figures sat at less than 800 homes sold, in the last two months in Athens we have seen roughly 185 homes sold. That is good news for everyone!

Did you Know? Information on Athens GA at your Finger Tips!

2009-09-02T10:16:00.003-04:00

At Athens GA Homes for Sale I have made it my goal to provide information about many aspects of our Classic City!

The following are on the Tool Bar to the Left hand side of the Home Page. Please use them as a resource for information Athens!

Property Searches
Your Home's Value
Your First Home
Buyer Concierge and Buyer Rewards
Athens GA Rankings, Stats, and Facts
Historic Districts of Athens
County Maps of Athens-Clarke and Surrounding Counties
Subdivision Map of Athens-Clarke and Oconee County
Telephone Numbers you might need when moving to the area
Short Sale information
You Tube Videos regarding home ownership and Athens, GA
Athens area attractions
Price Reductions in the Athens GA area
Foreclosures
Boulevard, Beechwood, Kingswood, and East Athens information

Please take a spin over to AthensGAHomesForSale and join the 1000 visitors a month that bookmark this site on the Web!

Months Supply of Housing Inventory in Oconee County, GA

2009-09-02T08:19:00.003-04:00

We have all heard that nationally the inventory level is supposedly at 9.4 months. I have indicated via a recent blog post that in Athens it is more like 12.5 months based upon recent 12-months sales figures. Today I wanted to look at Oconee County, GA. I also wanted to break it down to various price points. It seems that homes in excess of $250,000 are selling much slower with longer days on market this year. Let's compare inventory levels of below $250,000 and those over $250,000 in Oconee County, GA.

To begin with there were 303 homes sold in Oconee County, GA over the last 12-months (through 9/2/09). Of these home sales, 148 homes were over $250,000 in sales price. As of today, and according to the Athens MLS, there are 394 homes on the market for sale. (Of these only 11 (or 2.7%) were foreclosure resales too by the way, but that is for a different blog post.) From this you could deduce that we have roughly 15.6 months of inventory on the market for sale. To have a balanced market we need to get this figure down to about six (6) months supply of homes on the market for sale or an inventory level of 151 homes.

There were also 280 out of 394 homes currently on the market are listed for sale at over $250,000. At a current clip of 12.33 home sales per month in Oconee County, GA over the past 12-months, inventory levels for homes in excess of $250,000 would be said to be at a whopping level of 22.7 months or almost two (2) full years.

Actually if you are one of the lucky one's that have your home on the market for sale in Oconee and it is listed below $250,000 the level of inventory is 'only' 8.8 months. This is below the national average and closer to a balanced market between buyers and sellers.

What does this mean for homes over $250,000 that are on the market for sale? Either sellers need to understand that the road is long and patience is definitely a virtue as they market their homes for sale or drop your price and try to be as competitive as possible if you must sell sooner rather than later. Dropping your price however is not a guarantee as there is so much inventory to pick and choose from today with a limited number of buyers in today's market for sale. Contact me and I will tell you how I can sell your home in 90 days, but only contact me about my 90 day home sale plan if you are motivated!

Top Real Estate Web Sites

2009-09-02T07:25:00.002-04:00

According to Hitwise.com, websites for 'Business and Finance - Real Estate', ranked by Visits for the week ending 08/29/2009.

1. Realtor.com 7.32%
2. Zillow 3.52%
3. ZipRealty 2.59%
4. Yahoo! Real Estate 2.44%
5. Rent.com 2.26%
6. Trulia.com 2.15%
7. MSN Real Estate 2.07%
8. ServiceMagic 1.95%
9. Homes.com 1.76%
10. RE/MAX 1.50%
11. HUD 1.45%
12. Apartments.com 1.39%
13. AOL Real Estate 1.26%
14. Century 21 1.24%
15. Homegain 1.24%
16. MyNewPlace 1.22%
17. Apartment Guide 1.11%
18. RealtyTrac 0.86%
19. mlsfinder.com 0.82%
20. ForRent.com 0.81%

As has been typical, the Top five (5) sites attract roughly 1 in 5 visits to real estate search sites while the Top 20 control almost 40 percent of all visits. Are you getting the right kind of exposure to your Athens GA area home for sale?

Reasons to Buy a Home

2009-09-01T22:25:00.002-04:00

If you're not sure whether to buy a home, consider some of the reasons that most home buyers give. People buy homes as investments, to save for their futures, to accomplish the American dream. Once you have saved for down payment and made the emotional commitment you're ready to buy your first home.

Planning Renovation During a Tough Economy

2009-09-01T09:49:00.002-04:00

You may look at your personal finances and the bad economy around you and think that now is not the time to be putting money into a home renovation. Advice from a professional builder says now may be the best time to look into that renovation project.

Are you Ready to Buy a Home?

2009-09-01T09:45:00.002-04:00

From Award-winning syndicated real estate and personal finance columnist, WSB Radio talk show host, and best-selling book author Ilyce Glink.

Did You Know: Size of Home Purchased

2009-09-01T06:53:00.000-04:00

By Jessica Lautz, Research Economist

The American Institute of Architects recently released a study, AIA Home Design Trends Survey, showing there is a growing demand away from McMansions and towards homes that are smaller.
From the survey only 4 percent of architects reported their clients wanted more square footage this year compared to 16 percent last year.
The smaller home size could be a reflection of a number of factors including the affect of the recession on home owners and home buyers mind set. Smaller is better and less is more. It could also be a reflection of home owners moving towards a more energy efficient home to lower energy consumption costs.
The 2008 Profile of Home Buyers and Sellers showed the average home buyer purchased a home that was 1,825 square feet.
Those who purchased new homes typically purchased home that were larger than those who purchased home that were previously owned.

Source: 2008 NAR Profile of Home Buyers and Sellers

12.5 Months of Inventory for Sale on Athens, GA Housing Market

2009-08-31T07:52:00.007-04:00

Well the end of the month of August brings us a new 12-month rolling time period to play with and discuss. Anytime I can 'over' analyze figures with a cup of coffee (or three or four) nearby I am in heaven.

The good is that the average sales price in Athens inched up over the previous period (12-mo's ending Aug 1, 2009) by a few hundred dollars. The average sales price in Athens is at $163,587 as compared to 12-months ending June 2008 at $168,257. This continues to back up the fact that on the average the Athens market has not lost as much ground as the mythic "national real estate market" over the past 18 months. Median sales figures from 12-months ending June 2008 show a median price of $142,400 at that reading of the numbers as compared to $139,900 today. Again, this shows only a slight fall off of home prices. I grant you the fact that at higher price points the fall off in prices can be higher, but if you look at the average to median price range in Athens it has stood up rather well.

What continues to amaze me is that when looking at sales figures of homes sold in Athens this year the average list/sold percentage is about 95 percent. This means that there is very little price roll off of list price. On price points north of $300,000 you might see this number in the 91-93 percent range.

What has continued to surprise me is that the number of sales has continued to fall off unabashed over the past year. The numbers of homes sold is off roughly 28 percent this year and 44 percent from the peak of 1382 homes sold in the 12-months ending June 2008.

All in all however, just looking at single family detached residential housing in Athens on the market for sale, with 774 homes sold in the most recent year through end of August we are looking at 12.5 months of inventory on the market for sale. We need about half that much to be in a balanced market between buyers and sellers. Note recent Online Athens article and the comments toward the end by that well spoken local young real estate broker!

*Note* 'I found the reader's comments to this article on Online Athens interesting. He is obviously either burned by the market or biased in some way. Maybe he is blinded by the national media that tells him things are bad so they must be locally too. I always preach that real estate is 'local' not national.

The numbers are what they are fortunately or not. Overall we have been less affected by foreclosures than the national average and other nearby markets. At higher price ranges the sales are even slower, and the reader to the piece in Online Athens points out all the slow sales and properties that have been on the market for awhile, but this does not mean that one can assume higher foreclosure levels and falling prices than exist in reality.'

How do you compute inventory absorption rates? You can't really. There is no way to know how fast this inventory will be depleted. In the meantime, the best one can do is to be patient if you need to sell your home and it is over $200,000 in price. If you are under $200,000 in price, I have seen this price range of the market as hot as it has been in 3+ years as of late. Almost all my listings between $120,000-$200,000 are either under contract or sold just in the last two months! If you are a buyer, the market is yours!

Showings and Contracts; Is one Dependent on the Other?

2009-08-26T13:42:00.006-04:00

Getting traffic into your Athens, GA home for sale. That is the end all. At least they tell me it is the end all. Okay, okay, I know I am a Gen X'r and a Contrarian, but while I do agree we need showings, I still hold fast to the concept that the technology we have today does weed out and therefore reduce physical showings. This is okay. I mean, you don't want 47 people to walk through your house creating foot patterns in the carpet and also requiring you to possibly have to clean it each and every time there is a showing lined up when a handful of showings can just as well do the trick thereby creating a sought after Contract.

Examining showings on a few of the home listings that I have had recently go under contract or sell, this is my finding;

	Showings	Days on
Location	90 Days	Market
Sunset Drive	18	103
Brookstone Drive	6	137
Sterling Drive	48	269
*Averages*	24	169

So a few questions arise.

Do the number of physical showings (i.e. walking potential buyers through the front door) cause the house to have a higher probability to be sold as compared to the next home?
Does location weigh into whether or not a particular house is sold more quickly than another?
Does price factor more heavily than other variables in getting a house sold? Does price if it is too high also possibly reduce the number of showings as well as create a prohibitive environment reducing our opportunities for contracts of sale?

The answer to these questions are "no, yes," and "definitely yes."

What is almost humorous to me, forgive me if I make myself chuckle in my analytical geekness, is the fact that I did not include the sales price of any of these homes. What you might find interesting is that the home with the most showings was the least in price of the three sales. It's also quite surprising that it had the longest days on market. Why? It missed on location, the neighborhood had too much competitive inventory on the market for sale, and was vacant which hurt it compared to other homes which were furnished or staged.

The property with the least showings in Brookstone sold for 98 percent of list price, and sold at a relatively low number of days on the market. Why was this the case? It had great location for the buyer. There was also fewer comparable properties on the market for sale in this subdivision. The Sunset Drive property was the most expensive of these listings and sold in the fewest number of days on the market. This was a result of location, location, and location.

In the end, none of these sold as a result of a great number of showings where real estate professionals dragged people through these homes. None of them even had, are you sitting down, a single "Open House." They sold because of hundreds and hundreds of views online, they were priced right, and they had good location.

I know these are only three sales in my example, but I could throw you another that sold in 44 days on the market, was priced at $239,900, and had but 2 showings. Again, it sold due to location and price for the area.

Keep this in mind if you are in the process of selling your home or are thinking about it. Through keeping the "masses" off your carpet, hardwoods, and rugs, you will have less to have professionally cleaned for your buyer when it does go under contract!

Athens GA Home Sales Trends and Market for Aug 2009

2009-08-26T12:53:00.004-04:00

Thus far in the month of August we are seeing the following Stats in the Athens, GA housing market;

Statistics (44 listings)
	Low	High	Average	Median	Total
List Price	$27,900	$670,000	$198,602	$145,200	$8,738,484
Selling Price	$23,000	$610,000	$187,530	$141,250	$8,251,337
List/Sold(%)	78.35%	101.05%	95.25%	96.36%	--
Price/SqFt ($)	$0.00	$158.52	$56.21	$67.00	--
Days on Market	19	576	149	96	--

Home Inspections in Athens, GA; Now go Infrared!

2009-08-26T09:38:00.007-04:00

Recently I had a home inspection needed on a property a Buyer Client of mine was buying in the Greater Athens area. This was a 4300 square foot bank owned property that had been sitting for awhile so the client decided to not only do a home inspection on this "as-is" purchase, but they took my advice to use HomePro Home Inspections and had them do their "Infrared" Home Inspection service. I have blogged about infrared home inspections in the past, but I thought the results of this inspection was substantial enough to do a follow up post.

HomePro, in Watkinsville, is the only area home inspector that is certified to do infrared home inspections.

This particular home has heart pine on the floor, walls, and ceiling of the main living area as you walk in the front door. What was ultimately impressive was that the attached photo shows heat coming in from outside due to missing and loose insulation in multiple locations. The bottom photo is amazing. The caption is "heat bleeding through from attic area due to loose insulation." It really does look like it is "bleeding" too.

What is pretty impressive about the technology is that you can more accurately nail a leak in a roof, condensation in a wall due to duct work that is loose or seeping, and even find those old bottles and nails left inside a wall from when it was constructed!

Is this for everybody? Maybe not this level of service. If I were buying a distressed or foreclosed property in this day and time I would get one of these services done.

HomePro does do the same basic inspections that any home inspector might do in addition to infrared. They have their patented "Blue Book" that goes through a soothing color coded section of warm to hot to help you as a home owner, home buyer, or Realtor see what problem areas exist in a property and which one's are no big deal.

Would use HomePro and Mark Lotane again in a heartbeat to help identify potential issues. Other than Mark, no one in town can "see through walls." He is my resident Superman in terms of getting my clients answers on area homes. Not sure if he can leap tall buildings though...

Foreclosures in the Greater Athens GA area

2009-08-26T07:56:00.002-04:00

Foreclosures in the Greater Athens GA area now linked via the Athens MLS and GA MLS to the Blog Roll. Make your foreclosure searches even easier!

Neighborhoods and Condominiums Around Athens, GA

2009-08-25T13:10:00.004-04:00

Neighborhoods Around Athens:

Boulder Springs - www.boulderspringssubdivision.com - low 400's
Bridlegate Homes - www.bridlegate.com
Bryce Landing - www.brycelanding.com - 180's to low 200's
Clarksboro - www.clarksboro.com - 300's to 400's
Colleton Oaks - www.colletonoaks.com - low 200's
Falling Shoals - www.whiteoakhomesinc.com - from the 200's
Lakewood Manor - www.aliciaappling.com - low 600's
Meridian - www.meridianoconee.com - from the 550's
Oak Grove - www.oakgroveathens.com - 200's to 500's
Saddle Shoals - www.saddleshoals.com - mid 600's to 1M
Townside - www.townsidehomes.com - 250's and up
Vintage Farms - www.vintagefarmsoconee.com
White Oak Homes - www.whiteoakhomesinc.com

Condominiums Around Athens:

Remember that "Agency" in Real Estate defines the relationship you have with a REALTOR and who is looking out for your interests (i.e. Listing Agents represent the Seller).

Through my Buyer Rewards Program (full details at www.AthensGaHomesForSale.com) as a benefit to Buyer's working through me I give up to 1% of Seller Paid Commission toward the reduction of the purchase price of a home purchased through me! That is what I call a "Win-win!"

Foreclosure for Sale! Sure they are out there but are people really buying them?

2009-08-25T12:10:00.000-04:00

Posted on March 6, 2009 by hankbailey

For months now all we hear is how many foreclosures are happening “all around us.” RealtyTrac.com for example has made a huge amount of money focusing on nothing but foreclosures. Six out of their last nine press releases have dealt with foreclosure activity in and around the United States. You hit the “Why Join?” tab and it takes you to a 7-day free trial where it is indicated that you would be provided with unsurpassed foreclosure data including access to make an offer directly to the lender.

My question has been, while foreclosures are prevalent, are we buying them? I mean all the property “virgin” shows on HGTV lately have shown young first-time home buyers offering “full price or better” on foreclosures in order to get a deal on that home being sold “as-is.” We Americans must be buying these homes in mass, right?

According to the NAR’s Profile of Buyers and Sellers for 2008, no we’re not. According to the study it showed that only 6% of homebuyers bought a property in foreclosure in 2008. Of first-time homebuyers it was a tad higher at 7%, but on the whole the study showed that 56% of homebuyers did not even consider a foreclosure in their home buying plans.

Of the 38% that did consider buying a foreclosure, 21% could not find the right home, 12% each found the process too difficult or the home was in poor condition. Poor financing options accounting for another reason that the foreclosure sale did not happen or the home was in an undesirable neighborhood.

What I really find humorous was that 5% of buyers found the “price was too high” on the foreclosed property for resale! You would think that in buying a foreclosure you are getting a “deal,” but not always. I had a situation like this in our area where a buyer client wanted to consider a foreclosure, but there were two offers on the table and the bank was treating it as basically an auction where Realtors were asked to fax offers to a central number where they bank would take the best offer. The price needless to say got bid up so high my client found a beautiful home he ended up buying from a seller who had this home on the market for over a year, was in great shape, and he even got a home warranty out of it.

In the end, you hear conflicting information from the national media. I just don’t think the numbers stack up in their favor. I still find that a buyer would rather deal with a seller who is not a cold, “only care about the numbers,” bank.

If you are looking to purchase a home in the Greater Athens area, please feel free to use this link to Search the Athens MLS ! While on the Georgia MLS you can search for homes, create a User account to save favorite property searches, email property searches to friends and family, or request more information!

The link to my Featured Properties can take you to any number of properties that I am Marketing currently for Sale.

Quarterly Housing Market Performance for Athens-Clarke

2009-08-25T11:40:00.004-04:00

FHFA (Federal Housing Finance Agency) uses the revised Metropolitan Statistical Areas (MSAs) and Divisions as defined by the Office of Management and Budget (OMB) in 2008. These MSAs and Divisions are based on 2000 Census data. According to OMB, an MSA comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county as measured through commuting.

For information about the current MSAs, please visit:
http://www.whitehouse.gov/omb/bulletins/fy2009/09-01.pdf

MSA HPI Comparisons

Four-Quarter Percent Change in FHFA MSA-Level House Price Indexes (All-Transactions Index, 2009Q2)

Year	Quarter	Athens-Clarke County, GA	Atlanta-Sandy Springs-Marietta, GA
2009	2	-1.53	-3.49
2009	1	-0.90	-1.73
2008	4	1.43	-2.89
2008	3	-0.40	-2.05
2008	2	3.81	-0.58
2008	1	2.94	1.07
2007	4	2.28	1.42
2007	3	4.10	2.17
2007	2	4.50	3.70
2007	1	5.09	3.49
2006	4	5.76	3.47
2006	3	4.76	2.65

What we see is a relative strength in Athens-Clarke as compared to Atlanta since third quarter of 2003. Not surprising, but Athens has maintained a price level in the past four quarters of about 98.5 percent of where home price values were a year ago this time. In comparison, the Atlanta market is roughly 89.68 percent of where it was at the beginning of Q2 2008.

MSAs are defined by the Office of Management and Budget (OMB). If specified criteria are met and an MSA contains a single core population greater than 2.5 million, the MSA is divided into Metropolitan Divisions. The following MSAs have been divided into Metropolitan Divisions: Boston-Cambridge-Quincy, MA-NH; Chicago-Naperville-Joliet, IL-IN-WI; Dallas-Fort Worth- Arlington, TX; Detroit-Warren-Livonia, MI; Los Angeles-Long Beach-Santa Ana, CA; Miami- Fort Lauderdale-Miami Beach, FL; New York-Northern New Jersey-Long Island, NY-NJ-PA; Philadelphia-Camden-Wilmington, PA-NJ-DE-MD; San Francisco-Oakland-Fremont, CA; Seattle-Tacoma-Bellevue, WA; and Washington-Arlington-Alexandria, DC-VA-MD-WV. For these MSAs, FHFA reports data for each Division, rather than the MSA as a whole. FHFA requires that an MSA (or Metropolitan Division) must have at least 1,000 total transactions before it may be published. Additionally, an MSA or Division must have had at least 10 transactions in any given quarter for that quarterly value to be published. Blanks are displayed where this criterion is not met.

Athens, GA First-Time Home Buyer Tax Credit: A Wealth of Information is Available

2009-08-25T06:52:00.000-04:00

By Danielle Hale, Research Economist

This commentary was prompted by a recent conversation I had with a Realtor® who was lamenting the fact that a first-time buyer who had a co-signer did not qualify for the first-time home buyer tax credit. “That’s not true!” I said and pointed her to an IRS website that stated otherwise. Since this is not the first time I have heard incorrect information on the tax credit from a Realtor®, the news media, or other person or entity that should be in the know, I thought it would be a good time to remind everyone of the basics and show you where to go when you have questions.

The Basics

First-time home buyers who purchase a home to be used as a primary residence before December 1, 2009 are eligible for a tax credit equal to 10 percent of the value of their home purchase up to $8,000. To qualify as a “first-time home buyer” the purchaser and his/her spouse (if applicable) may not have owned a residence during the three years prior to the purchase. The credit is subject to income limits. Single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the maximum tax credit. The credit decreases for single buyers who earn between $75,000 and $95,000 and for married buyers filing jointly who earn between $150,000 and $170,000. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit. Unlike the credit for homes purchased in 2008, the tax credit for purchases in 2009 does not need to be repaid unless it ceases to be the primary residence of the tax credit recipient within three years after the purchase. In that case, the credit recipient will owe the full amount of the credit at that time the income tax return for the year the home ceased to be your principal residence is due. (i.e. You sell your home on January 1, 2010 or December 31, 2010; the full amount of the credit is due when your tax return is due on April 15, 2011.)

Limited, But Still Powerful

As of now, the credit is still limited to $8,000, available only to first-time buyers, and can be used on purchases that close before December 1, 2009. Still, we expect the tax credit in its current form to impact the market by bringing in a substantial number of home buyers. Check out this analysis done by Research after the credit passed in February to get the full picture. Currently, the National Association of REALTORS® is advocating for changes that would extend the time period for eligible purchases or expand the credit to all buyers. For more information on the legislative picture, visit the National Association of REALTORS®’s government affairs website.

Available at Closing!

While the tax credit itself cannot be claimed until a tax return is filed after a home has been purchased, the FHA recently announced changes to rules that enable FHA lenders to monetize the credit so that a buyer can use it for certain purposes at closing. In order to take advantage of this program, a buyer still must meet FHA’s 3.5 percent minimum down payment requirement. Before FHA’s announcement, certain states had instituted their own monetization programs that enable the monetized credit to be applied to the 3.5 percent minimum down payment. For more information on state level programs, check out this site.

Resources Available from the National Association of REALTORS®

The National Association of REALTORS® has a wealth of information to help everyone make sense of the tax credit. Visit our home buyers and sellers resource page on the tax credit here.

If you’re looking for resources to help you get the message out to potential first-time buyers, be sure to check out the Right Tools Right Now page where you’ll find a special section full of free tools on the tax credit and information about working with first-time buyers.

Resources Available from the IRS and FHA

Of course sometimes it’s nice to go straight to the source. The IRS has some helpful web pages on the tax credit, too. Check out the overview page.

Also be sure to visit the “Scenarios” section of the question and answer page for guidance on issues such as splitting a credit between non-married persons, having cosigners, how to handle the credit for married couples. For further clarification, consult with a tax attorney.

The tax credit is a great opportunity for first-time buyers, but it is only available for a limited time. Be sure you are up to speed on the tax credit provisions that are currently in the law so you can help buyers take advantage of this opportunity.

Copyright National Association of REALTORS®, Reprinted with permission. Photos courtesy of Athens Convention and Visitor's Bureau

Taking the Long Out of the Short

2009-08-25T06:51:00.001-04:00

For many sellers the “short” sale process is anything but; it can be much more tedious than the phrase implies. Realtors® say the extensive delay in the short sale process has caused many buyers to go elsewhere, forcing many sellers into foreclosure.

Now the U.S. government is stepping in to help homeowners facing foreclosure by streamlining the process for short sales and deeds-in-lieu of foreclosure. The U.S. Treasury recently announced new incentives under the Making Home Affordable Program to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and help many of them protect their financial futures.

Best Laid Plans

From my own experience, and from talking to other Realtors® to get their insights into short sales in today’s real estate market, it seems that we all have the same client experiences. The short sale process and outcomes regarding these transactions, for both buyers and sellers are still as tiresome as ever.

It still takes time, and time is what most buyers don’t feel they have to provide due to the fact that there is still roughly 10 months of inventory for sale. Especially this time of year, buyers are trying to get situated before school starts back. The desire is for a quick purchase and to move to settle in before the fall of the year. Short sales delay this process for weeks whereas a bank owned foreclosure resale can be something negotiated with the bank after the foreclosure and be handled in a relatively short period of time.

Statistics - Foreclosure Resales in Athens; Y-T-D 2009 (66 listings)
	Low	High	Average	Median	Total
List Price	$11,900	$395,000	$120,163	$107,450	$7,930,750
Selling Price	$9,200	$330,000	$112,506	$105,501	$7,425,374
List/Sold(%)	74.07%	122.18%	94.82%	95.21%	--
Price/SqFt ($)	$0.00	$194.15	$46.16	$47.50	--
Days on Market	22	682	152	92.5	--

Athens GA Real Estate Trends and Analysis

2009-08-24T10:53:00.002-04:00

If you haven't had your home on the market for the past 12 months you probably don't know what to expect in terms of DOM (days on market). How have properties in Athens, GA performed under pressure?

Time on Market Analysis
For Units Sold
Days	Residential	Other	Total
0 - 30	22	2	24
31 - 60	101	7	108
61 - 90	122	3	125
91- 120	94	1	95
121+	446	5	451

Out of 803 residential properties sold in the last 12 months (through 8/24/09), roughly 3 out of 5 was on the market for more than 121 days. The price point with the longest DOM was actually between $250,000-$299,999 where the average home sold in 346 days on market! The price range with the most homes sold was between $100,000-179,999 where more than half of all homes in the Athens area sold.

How about financing? How are people finding money for home purchases and putting deals together in this period of tight credit?

Type of Financing Analysis
For Units Sold
Financing	Residential	Other	Total
Cash	161	8	169
VA	7	0	7
Owner Financing	4	0	4
Conventional	387	9	396
FHA	204	1	205
Other	22	0	22

A full 1 buyer in 4 was able to obtain FHA backed financing. "Conventional" financing was most dominate with roughly half going that route while a few put together deals with the help of VA and owner financed arrangements. What might surprise you is that almost 1 home in 5 was a cash purchase!

There are still homes being bought and sold and money to be found in the purchase of a home when the "deal" is found or that right "first" or "step-up" home is being sought after. The key is to keep looking! Right now homes are at such a relative bargain.

Housing Affordability Continues To Hover Near Highest Level In 18 Years

2009-08-24T09:33:00.003-04:00

"Bolstered by affordable interest rates and low prices, nationwide housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago," according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released last week.

According to Wells and the NAHB, "the 72.3 percent of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5 percent during the previous quarter and up from 55.0 percent during the second quarter of 2008."

“The increase in affordability — along with the $8,000 federal tax credit for home buyers — is stimulating demand, particularly among young, first-time buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “But to keep the recent upturn in home sales going into next year, Congress will need to extend the tax credit for another year and make it available to all buyers in an effort to encourage activity in the trade-up market.”

Difficulties in Obtaining Mortgages; Do they still Exist?

2009-08-22T12:09:00.000-04:00

Posted on March 9, 2009 by hankbailey

Over the past year we have been inundated by news of hard credit, a lack of credit, and the pains of the mortgage process. What is real and what is perception however might be two different things. In a study of 2008 buyers and sellers done by the National Association of Realtors it apperas that only 7% of all home buyers felt the mortgage process to be more difficult than expected. In fact, 73% found the mortgage process not difficult or no more difficult than expected.

What about the dreaded thought of being rejected for a mortgage? 93% of buyers were successful in obtaining financing for their home purchase. Only 5% where rejected on their first mortgage application while 3% where rejected by two or more lenders before finally obtaining a loan.

The reality seems to be that the process is not as difficult from the buyer’s standpoint as it may be to the loan officer, appraiser, Realtor, and loan underwriter. Hopefully this means that all of the above shelter properly and do a good job professional job at hiding the innate stresses of our jobs!

The link to my Featured Properties can take you to any number of properties that I am Marketing currently for Sale.

http://athens-ga-homes.yourkwagent.com/

Athens GA Home Sales, week of Aug 17, 2009

2009-08-20T15:48:00.003-04:00

During the week of August 17th, we have seen fifteen sales in Athens, GA. Of these roughly 27 percent were listed for more than $300,000. Of these we find the following statistics;

Statistics Sales Above $300k List Price (4 listings)
	Low	High	Average	Median	Total
List Price	$315,900	$399,900	$348,800	$339,700	$1,395,200
Selling Price	$288,600	$378,000	$318,400	$303,500	$1,273,600
List/Sold(%)	86.79%	94.52%	91.14%	91.63%	--
Days on Market	90	118	100	96	--

Of properties listed for under $300,000 (chart below) we found that Athens, GA home sellers are still getting a high percentage of list price. Higher end homes seemed to sell at more of a discount during the week to get them moved quickly. This is a testament to some of the lowest days on market that we have experienced this year thus far.

Statistics Sales Below $300k List Price (11 listings)
	Low	High	Average	Median	Total
List Price	$62,500	$279,900	$143,591	$133,000	$1,579,500
Selling Price	$60,000	$259,000	$137,055	$132,000	$1,507,600
List/Sold(%)	88.06%	100.00%	95.83%	96.08%	--
Days on Market	37	288	131	84	--

All in all, the most popular price range in the Athens area is between $120,000-$180,000 as I have noted in other recent posts. If you are in this price range please know that you won't have to budge much when that offers comes!

Greater Athens area Sales Trends and Market Data

2009-08-20T14:13:00.003-04:00

Through August 20, 2009, performance in different sectors of our market;


	Homes Sold	$ Volume
Year To Date	% Change	% Change
Oglethorpe	5.08%	-21.60%
Barrow	-35.73%	-47.55%
Jackson	-14.75%	-29.40%
Oconee	-28.98%	-36.99%
Athens-Clarke	-36.25%	-42.52%

Keep in mind that a decrease in sales volume doesn’t necessarily mean that prices have decreased. It does show that lower priced homes have been the norm to sell this year as opposed to last. Areas of the Athens market beating the norm are homes priced between $30,000-$69,999. Sales of homes in this price range have actually increased this year in terms of the number of homes sold. Hardest hit price points are from $180,000+ which have had a reduction in the number of homes sold within higher price ranges of anywhere from 50 to 81 percent during 2009. In Oconee County are seeing an increase for the year in sales up to $120,000 over last year and then decreases in sales figures as we start climbing over $200,000.

Areas we have seen life in during these summer months are between $200,000-$299,999. In this range we have seen an increase in the number of homes sold, as compared to last summer, of 19 homes sold versus 7 a year ago which is almost a 300% increase year over year. Also 3 out of 5 homes sold in Athens in the last two months were sold between $120,000-$180,000.

Your Home is being marketed on the Net; Is anyone seeing it?

2009-08-20T12:08:00.000-04:00

Posted on March 10, 2009 by hankbailey

According to Hitwise, a company which provides insights on how 10 million Internet users interact with more than 1 million websites, across 165+ industries, has provided their monthly traffic report on real estate websites. If your listing or property for sale is not on several of these top sites, you need to start asking why. The sites are ranked on share of visits from a total Hitwise sample of 10 million Internet users.

Realtor.com seems to own the top spot with a 6.97 percent of the market share of all visits to real estate-related web sites.

Yahoo Real Estate (realestate.yahoo.com) ranked second with a 4.38 percent share, followed closely by Zillow.com (3.1 percent) which held third position again this month. How about the rest of the top 10? ZipRealty.com , Rent.com, the U.S. Department of Housing and Urban Development’s, HomeGain.com, ServiceMagic.com, and Trulia.com rounded out the list.

http://athens-ga-homes.yourkwagent.com/

Top Real Estate Websites for Athens, GA or your Town 8/15/09

2009-08-20T07:16:00.004-04:00

The following report shows websites for the industry 'Business and Finance - Real Estate', ranked by Visits for the week ending 08/15/2009. Data via Hitwise.com

Rank Website Visits

1. Realtor.com 7.42%

2. Zillow 3.36%

3. Yahoo! Real Estate 2.79%

4. ZipRealty 2.71%

5. Rent.com 2.33%

6. Trulia.com 2.15%

7. ServiceMagic 1.93%

8. MSN Real Estate 1.91%

9. Homes.com 1.66%

10. RE/MAX 1.53%

According to Hitwise, among the most popular search terms leading to real estate-category Web sites during the four-week period ending July 25: "realtor.com," "zillow," "real estate," "apartments for rent," "zillow.com," and "homes for sale.”

Does your REALTOR® Blog?

2009-08-19T12:07:00.000-04:00

Posted on March 11, 2009 by hankbailey

source: 2008 NAR Member Profile

“The percent of REALTORS® who have a real estate blog doubled to 8 percent in 2008 from 4 percent in 2007.
An additional 13 percent of REALTORS® plan to have a blog in the future.
Nearly one in ten REALTORS® younger than 60 years of age have a blog.
Additionally,one in five REALTORS® 29 years old or younger reported that they plan to start a blog in the future, decreasing to a still significant one in ten among those 60 years or older.”

Does your REALTOR® blog? If not, why not? If they blog, does their blog seem to be an attempt at a blog post here and there randomly or is it a part of their business practice? Blogging is, or at least it should be, more than random thoughts about what restaurant they had lunch at yesterday. More than a blurb about the last parade through town, or their last open house experience. It should be a study (for the REALTOR®) and a reflection of knowledge that they have obtained about their town and the real estate business. Through blogging we are able to show an almost inexhaustable body of work that shows we study our business daily.

Real Facts about Athens Georgia Real Estate

2009-08-18T12:05:00.000-04:00

Posted on March 13, 2009 by hankbailey

Real Facts about Athens Georgia Real Estate as provided by the Athens Georgia Area Association of REALTORS® with market update from Hank Bailey.

The Athens Georgia Area Association of REALTORS® has teamed up with the National Association of Realtors® to give Athens Georgia area regional residents the facts about homeownership and information about the local real estate market. Would-be homeowners who are uncertain about their home buying plans can learn more about the options available to them and the long-term benefits of owning a home through a new advertising campaign that will provide current, relevant housing data to help them make an informed decision. Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing-sales series. A Federal Reserve study has shown that the average homeowner’s net worth is 46 times the net worth of the average renter. Despite this and other research, some potential home buyers are being kept on the sidelines as they react to national media reports about the housing market.

“Nobody buys a home in the national real estate market,” said NAR President Dick Gaylord. “All real estate markets are local, and buyers and sellers who are thinking about making a move should consult with a Realtor? in their local market to learn about conditions specific to the area. It’s also advisable to look beyond the immediate horizon – real estate has proven itself to be a good long-term investment and a safe, secure way to build long-term wealth.”

According to the Multiple Listing Service of the Athens Georgia Area Association of REALTORS®, Athens Georgia real estate prices prove to remain on a steady rise in the Athens regional area unlike much of what in reported in the media for the nation. In Oconee County, the average residential sold price was $279,615 in 2005. In 2007, the Athens, GA MLS reports that the average sold price rose to $321,207. In Clarke County the Athens, GA MLS residential reports show that the average residential sold price in 2005 was $184,119. In 2007, that average rose to $189,934. Madison County has also had a strong increase in prices with an average residential sold price in 2005 at $159,753 and increasing to $164,758 in 2007. In addition, the Athens, GA MLS shows that Oglethorpe County prices held strong with an increase from 2005 at an average price of $149,263 to $160,472 in 2007.

Market Update; In the Q4 Real Estate Market Report, Zillow.com, it was reported that the market declined 11.6% from a year ago. In 2008 the average residential sales price in Clarke County, through the Athens, GA MLS was $189,017. A modest decrease from the previous year’s $189,934. In Oconee County, where the average residential sales price rose in 2007 to $321,207, in 2008 sales prices rose again to $322,378.

http://athens-ga-homes.yourkwagent.com/

First Time Home Buyer; Got the FICO, need the 3-4% Down. I might know where you can find it tax free!

2009-08-17T12:02:00.000-04:00

Posted on April 3, 2009 by hankbailey

With all of the talk about the $8,000 tax credit for first time home buyers, the fact that there is potentially “more” tax free money that can be used toward the purchase of a first time home, might be escaping us. The Roth IRA. Yep. According to the IRS’ website, “You do not include in your gross income qualified distributions from your Roth IRA. You may have to include part of other distributions from Roth IRA(s) in your income.” Okay this we know.

The site goes on to say, “A qualified distribution is generally, any payment or distribution made after the 5–taxable–year period beginning with the first year for which a contribution was made to a Roth IRA set up for you, and that is made on or after you reach age 59 1/2, made because you are disabled, made to a beneficiary or to your estate after your death, or that is made to buy, build, or rebuild a first home. A distribution used to buy, build or rebuild a first home must be used to pay qualified costs for the main home of a first time home buyer who is either yourself, your spouse, or you or your spouse’s child, grandchild, parent, or other ancestor.” As my twenty-something year old niece would say, “hey HEY hey. “

The IRS rules allow that up to $10,000 in “earnings” can be withdrawn after the 5 year period. This means that if you have an ROTH and it was first funded six (6) years ago this year, you are probably in business. Now, should you use these dollars toward a purchase your new home? Good question. I could definitely make the case that with affordability at 50 year lows that it makes sense. If you have the money in some fixed investment or the stock market it might make better sense. If “not” using your ROTH would prohibit you from buying your first home and taking advantage of the $8,000 tax credit which would essentially increase dollar for dollar (up to $8,000) your ROI (return on investment) in your new home, then yes I would have to say it is an absolute must to “raid your ROTH.”

Also, and don’t miss this point, the IRS says “used to pay qualified costs for the main home of a first time home buyer who is either yourself, your spouse, or you or your spouse’s child, grandchild.” This means that if Mom or Dad want to help you get into that first home, they can tax-free. That means Grandma or Grandpa can do the same.

Now you don’t have to use a ROTH to help you out, but consider that tax laws change like the wind. You can’t count on what they might be a year from now much less 10, 20, or 30 years down the road. You can take advantage of what we know today however to make your first biggest investment of your life!

These are probably the best buying conditions in 30 years! If you would like to search the Athens MLS please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!

Athens GA Homes, Market, and Trends

2009-08-17T07:19:00.004-04:00

Home Sales statistics in Athens, GA over the past week;

Statistics (22 listings)
	Low	High	Average	Median	Total
List Price	$28,500	$670,000	$192,549	$144,500	$4,236,074
Selling Price	$28,500	$610,000	$179,591	$136,000	$3,951,000
List/Sold(%)	78.35%	101.35%	93.97%	94.75%	--
Days on Market	19	906	227	121	--

While days on market were a little higher than had been the norm of late, the average priced sale was also a bit higher thanks to a full 21 percent of sales being in excess of $300,000. 63 percent of these sales were in East Athens, which remains a hot spot in town due to lower than the overall median home price for the area.

On sales over $300,000 this week we saw an average List/Sold percentage of "only" 91.77 percent with the low at 88 percent of List/Sales price. Compare this to sales price below $215,000, and we see at List/Sold percentage or ratio of almost 95 percent of list price.

As far as foreclosure sales are concerned, only 3 out of these 22 home sales were bank owned sales. Compared to the most recent figures from the NAR where in July 31 percent of homes sold nationwide are foreclosure sales, our 13.63 percent of foreclosure sales is thankfully low in comparison. In fact, if you go back over the past six months in Athens, GA you will find 71 bank owned foreclosure sales out of 468 total homes sold. Foreclosures nationwide have made up anywhere from a high of 49 percent of the market down to a recent 31 percent in recent months. At 15.3 percent over this time frame, we have had a relatively consistent market on distressed property this year. Consistently low as compared to non-distressed sales.

This is a great deal to be thankful for in our marketplace!

No Down Payment No Problem; FHA to the Rescue

2009-08-16T12:02:00.000-04:00

Posted on April 8, 2009 by hankbailey |

As a follow up to my April 3, 2009 post, “First Time Home Buyer; Got the FICO, need the 3-4% Down, I know where you can get it Tax Free,” I noticed that FHA loans also allow gifts for the entire down payment and closing costs. This is huge whether or not Mom and Dad have a ROTH, as previously posted.

No down payment, no problem. Just make sure you discuss with your lender what time frame is needed for Mom and Dad to make the gift before jumping in and doing it. This could save some headache and hassle down the road.

Locking in your Mortgage Rate

2009-08-16T07:21:00.000-04:00

Mortgage Shopping; Negotiating

2009-08-16T07:20:00.002-04:00

Nothing says “Pre-Foreclosure” like a Vacant Home!

2009-08-14T12:00:00.000-04:00

Posted on April 15, 2009 by hankbailey

If you are one of thousands of sellers all across the fruited plain that has a vacant home you are trying to sell, let me give you some advice, raise the price and keep it from looking vacant. Okay, well maybe don’t raise the price, but nothing seems to slow down the selling process like trying to sell a vacant home. Buyers and real estate professionals seem to smell “distressed sale” even though that vacant home may not be a distressed sale. Assumptions by potential buyers on the current financial status of many a vacant home has killed an owner’s chances of getting it sold at market value, and they tend to sit on the market much longer than occupied homes for sale. From my experience as a real estate broker, here are some tips to live by in selling your vacant home.

*Give the house a lived-in look. See if a neighbor or close by family member would help by making the house look occupied. Have them park a car in the driveway, open and close the blinds, and take in any stray newspapers off the driveway. This can also be accomplished, by letting a college aged child live in the property while for sale. On one of my listings we are taking this option. He needed a place to live during his Junior year of college, so he is going to stay and live in the home while it is on the market.
Now-a-days there are even house sitter services that will put someone in the property while for sale to maintain it for the seller. Another option is Home Staging. This can be expensive, especially on a tight budget, but may be well worth it in certain price ranges depending on your home and location.

*Maintain the look of the yard. I have had buyers attracted to one listing over another due to the fact a lawn looked cared after. Unless you are going to do this yourself, hire a lawn service during the summer to keep the grass cut, edged, weeds pulled out of the beds, and limbs off the lawn.

*Do some Home Staging on your Own. Touch up the paint, repair nail holes when removing pictures or mirrors from the walls, and replace rugs so there are no faded spots or blemishes on the walls. Keep some of your furniture in the home if at all possible. Set up sitting areas, as a good home stager would do. If you have a love seat and a full sized sofa in the living room, take the sofa and leave the love seat. Remove the King sized bed in the Master or Owner’s suite and replace it with a Queen. Get your larger, bulkier, furniture out of the house and replace or leave smaller pieces to emphasize the space.

*Leave the Utilities Running. Most thermostats today have the wonderful ability to program a comfortable temperature during the winter and summer months without having to worry about the inside temps in your home. Also, keep them going. If you don’t want to seem desperate and the property hurt by feeling like a “distressed sale” remember also that nothing says “foreclosure” more than walking into a home with no power! Keep paying those utilities.

*Hiring a maid service and other tips. Make sure the home remains cared for through at least having a monthly service check for cob webs, dust, and even sweeping or mopping floors. If you are getting some traffic coming through the house to view the property, it makes a better impression if the floors remain clean. A trick to use is to keep two baskets by the front door with disposable shoe covers. One for new and one for those discarded after use. Believe me when I say that anyone looking at your home will be impressed that you care enough to protect your home from excess traffic that you provided and request for anyone showing or previewing the home to wear disposable shoe covers than the dozens of homes that your potential buyers may look at which do not. Whether they wear them or not while previewing your home, the point will be made!

Words not to use when Advertising your Home

2009-08-13T15:12:00.004-04:00

Got a PDF today regarding words that you are not supposed to use per the following remarks from our MLS. The local board stated, "Attached are the list of words that you are not allowed to use according to HUD. It has come to the MLS board's attention that many agents across the board are in violation with their listings and especially public remarks shown on pictures. Please police your own listings to make sure you are in compliance."

Wow! Made me afraid. What could it be that people are saying or words they are using to send an email out to every local real estate professional?!?!

Some of it is real. For example you can't use terms that discuss ethnicity, nationality, or religious institutions in a given area near a home for sale. Even if it is near the "Baptist Church," you can't "say" that or risk offending HUD. In the "BIBLE belt" it can be pretty difficult to omit every church that might be nearby a home you happen to be selling.

What I thought was funny however were a few of the terms you CANNOT USE! One in particular struck me as funny. The term is "Anglo Saxon." Just WOW! I never would have thought of that one. Frankly, if you are Welsh or Irish you might be offended, but who in this country and in this day and time (especially with our educational system) would know or care what an Anglo-Saxon was anyway? Who would use that term to describe a home? I can see it now;

"Beautiful 3 bedroom/2 bath for the Anglo Saxon in you!"

It is kind of a Jeff Foxworthy(ism) that says, "If they put it in the list of words not to use, then some dang fool used it."

Terms that you MIGHT USE, which means they may violate the rules still, are words like "fisherman's retreat." Yes, you read me right. This term "may" violate the law. We don't want any fish getting offended and we also don't want to be providing an unfair advantage to the fish!

Another that I know you have seen is the term, "handyman's dream." You can say "fixer-upper," but again, we don't want to have people assuming we only sell to "handymen." If you want to use it, beware! If you want to use the word Catholic or Mormon in your advertising you had also better think about it, but according to the rules please state proudly in your advertisement the word "EASTER BUNNY!" It is actually in the list of okay phrases. Again, who would use this term in an advertisement to sell a house?

We MAY NOT say Christian, but we can say "Happy Easter" and "Merry Christmas." Also, don't even dream of using the word "Empty Nesters." The word "traditional" might violate the law if you use it, and while our own Association has changed "Master" Suite or bedroom to "Owner's Suite," HUD says that Master Bedroom is perfectly fine to use. No worries, you won't offend anyone so says our government!

The words "must comply with park rules" and "newly-weds" are potential no-no's, and while you can't use the term Jewish, you can specify that "kosher meals available" with confidence. Now how does that make any sense?

In the end, feel good because "nanny's room" is okay to use with no one need be ashamed!

First Time Home Buying in Athens, GA; Buying Vs Renting

2009-08-13T09:26:00.010-04:00

There are many variables that go into the decision to Buy versus Rent. I found a neat tool that might be useful in determining whether or not the decision to Buy makes sense. Before I give you the link, I would like to show you a scenario or two I am working out on my own.

Buying Versus Renting

Buying a home would save you approximately $71,374 (in today's dollars) over 15 years, compared to renting, based on the assumptions you provided.

Cost comparison		Rent	Buy
Rent and fees		$243,126
Mortgage payments			$279,443
Property insurance	+		$21,579
Property taxes	+		$37,762
Maintenance	+		$7,500
Opportunity cost	+		$45,136
Tax savings (interest/taxes)	-		$30,046
Home Appreciation	-		$215,786
Total cost	=	$243,126	$145,588
Present value at inflation		$182,609	$111,235
Difference			$71,374

What is neat about this is that based upon the following variables and assumptions that buying definitely works. It shows that in 15 years, you would own your home, and would have saved $71,374.

Rent assumptions

Monthly rent payment

Additional monthly fees

Monthly renters insurance

Annual rate increase

(0-10) %

Purchase assumptions

Price of property

Down payment

Loan amount

Annual interest rate

(0-30) % 5.5

Loan term

(1-30)

Annual appreciation rate

(0-10) %

Annual homeowners insurance premium

Annual property taxes

Annual maintenance cost

Other assumptions

Number of years for the comparison

(1-30)

Marginal tax bracket

(0-50) %

Before tax return on savings

(0-12) %

Assumed annual inflation rate (0-10) %

What if we drop the price by another 10%? I mean after all the harbinger's of doom are still preaching that the sky may yet to fall some more. (**Note** In multiple blog posts of late I have demonstrated that per sources such as Zillow that the Athens market has actually 'increased' over the past year on the average.) Let's also looks at what happens if rates jump 'another' half a point from 5.5 percent to 6 percent. This can happen you know. Remember rates in the 4.75 percent range a few months ago. The are floating between 5 1/8 - 5.5 percent right now.

Buying a home would save you approximately $73,595 (in today's dollars) over 15 years, compared to renting, based on the assumptions you provided.

Cost comparison		Rent	Buy
Rent and fees		$243,126
Mortgage payments			$259,739
Property insurance	+		$21,579
Property taxes	+		$37,762
Maintenance	+		$7,500
Opportunity cost	+		$40,393
Tax savings (interest/taxes)	-		$29,837
Home Appreciation	-		$194,207
Total cost	=	$243,126	$142,928
Present value at inflation		$182,609	$109,014
Difference			$73,595

So basically the assumption of a price drop and a half a point increase in rates caused you to save another $2200 over the life of the loan or about $146.66 per year. To wait for 'another price drop' would save you lunch money each month.

Am I calling for that mythical bottom of the market? I don't really have to call for it. If you want to own your own home and understand the math behind it, it would seem that owning today even if the market drops lower still makes sense. If you want to play around with some custom scenarios like I just did, please go to http://www.trulia.com/rent_vs_buy/.

Athens GA Home Sales; Week of Aug 10, 09

2009-08-13T07:31:00.002-04:00

This week we have seen some shorter days on market for sales in Athens, GA. Please note the chart of 13 sales thus far for the week of August 10, 2009;

Statistics (13 listings)
	Low	High	Average	Median	Total
List Price	$28,500	$429,900	$156,260	$120,900	$2,031,375
Selling Price	$28,500	$415,000	$147,723	$110,000	$1,920,400
List/Sold(%)	85.00%	101.05%	94.60%	94.55%	--
Days on Market	19	661	150	65	--

Note the "High" sales was on the market for 661 days. The only other sale out of this group of home sales that was over $175,000 sold at $280,000 in 141 days. Roughly 85 percent of this week's sales were under the $175k level.

What is important to note is that sellers are still getting a tight 95 percent of list price. That is good for all of us!

Shopping for a Loan; Getting the Best Deal

2009-08-13T06:51:00.004-04:00

Eco-Friendly Ideas for Home Buyers, Sellers, and HomeOwners

2009-08-12T11:58:00.000-04:00

Posted on April 21, 2009 by hankbailey

*Use Eco-friendly Moving supplies when you find your new Dream Home! Also, look first at energy wise “Energy Star” compliant appliances.

*Educate yourself on tax incentives available for Green Homes.

*When you have a special occasion or birthday for a friend and family to celebrate, or even as a house warming gift for a new neighbor, give a Tree!

*Do Eco-Friendly home improvements. All this takes is a little bit of education as to what makes up an Eco-friendly improvement versus not. This can cause benefits for the environment and for future marketing of your home for sale!

Mortgage Shopping; A Four Part Series from MoneyTalks

2009-08-12T08:43:00.002-04:00

Part 1 of a 4 part series on shopping for a mortgage focuses on the basics of your mortgage search.

Zillow Real Estate Market Reports for Q2

2009-08-11T07:23:00.007-04:00

Real estate powerhouse Zillow came out with their Q2 housing market report . Out of 161 MSAs (Metro Statistical Areas) they found the following;

*Home Values fell 12.1 percent year over year

*Foreclosures comprised in June 22 percent of all sales (it was noted in another one of my posts that Athens had a recent foreclosure percentage of only 10.5 percent of sales)

*Negative Equity; 23 percent of sellers lost money and had to bring a check to closing or their lender agreed to a short sale

*Home Sales off 23.7 percent in June

Now with this said, if you live in our "Classic City," was Athens, GA even reported on in this market report that will get big news today in the press? For that matter, is Athens, GA counted in the Case-Shiller market report? You know the one that has been reported on constantly and has become the harbinger of doom for the so-called "national" real estate market.

The answer is an emphatic "No." Our small hamlet, and yes I used the word hamlet, in northeast Georgia is not counted in these composite rankings.

In Athens, according to Zillow's Home Value Index (not a part of the Zillow Market Report for Q2), our market was up 11.3 percent in the past year! When you hear gloom and doom from the composite indexes from Zillow, Case-Shiller, OFHEO, or the NAR, make sure your market is included in the mix. A loss to the index does not guarantee a loss to your individual market just because the composite lost value. I know, I know that 11.3 percent increase is hard to buy for most of you, so I included the link.

Look at the S&P 500 stock index for example. Just because the index loses value in given year, it doesn't mean all 500 stocks lost value. Now if my stock were "not even in the S&P 500," I wouldn't care what the S&P 500 index did because it definitely doesn't impact me.

This report from Zillow or the next one from Case-Shiller might not impact you!

Absorption, Inventory Levels, and Athens Housing

2009-08-11T06:49:00.007-04:00

Yesterday I had a chance to be interviewed by the local Athens paper regarding inventory levels in our "Classic City" and how they compared to the national picture. It was actually like exploratory surgery as I had a chance to take a look in the mirror of our town's real estate market to see where we are today.

What we came up with was that there are 1239 homes for sale in Athens, GA as of today. This would include not just single family detached, but also condos and townhomes. In the past year, through 8/10/09, there were roughly 800 homes sold in Athens. You could derive from this that we have about 18 months worth of housing inventory from these facts. I think that is most telling however is that for a healthy "balanced" market, inventory levels need to be between 4-6 months. With this said, we need to absorb through sales, withdrawals, or expirations of listings about half to two-thirds of existing housing inventory for sale to have a healthy market again.

How long will this take? There are too many variables to be able to know that figure precisely.

Fun facts for our housing market, for example, in the past year there were 2400 new listings put on the market. Roughly a third of these have sold as I pointed out. Another 1240 are still on the market. This leaves about 10 percent that either expired or were withdrawn without selling.

New construction adding to the mix of additional listing inventory has all but been eliminated for now. This is one reason why for the year ending June 2008 there were more than 3300 new listings on the market and now we are off that figure about 1000 homes.

In all, we see foreclosure rates locally, including Oconee County, to be much less than the national averages. The market may have too much inventory, but we are weathering the storm.

Keeping America Green

2009-08-10T11:57:00.000-04:00

Posted on April 22, 2009 by hankbailey

Although today’s economic environment has a lot of Americans seeing red, many are still thinking green when it comes to housing.

According to the National Association of Home Builders, the green homes market is expected to increase to 10 percent by 2010.

Ninety percent of recent home buyers believe energy efficiency is a very important factor when shopping for a home. Buyers who placed a priority on energy efficiency were also more likely to value other environment-friendly features, such as proximity to parks and public transportation, and existence of sidewalks in the neighborhood.

Smart Green Growth…

A contrarian’s point of view, one broker I spoke with felt that unfortunately if a home is green that this equates to also mean expensive. He stated, “I would like to hear from builders or providers to green home building what the return on investment is for each feature. “

Regardless of popular sentiment, he commented, “people in the green movement honestly believe that if it is green regardless of the payback it will sell.” He also stated, “I do not believe that the green movement will succeed unless it has a reasonable return on investment. In my humble opinion the buyer’s want a return on what they invest.”

A forensic review appraiser, Rachel Massey, chose to “go green” a much more cost effective way. She stated that her way of going green was moving from a 2,400 sq ft house into a less than 1,100 sq ft house. She commented that the move into a house with better windows than the previous home, lower fuel costs which were about half that of the large house were for her a great way to go green and save money all at the same time. She commented that she and her family would like to include solar and/or wind as a power source, but the costs seem prohibitive. She states that for now, simply going smaller was a good way to go green.

Greening of Older Homes…LEED Certification

Dan Melman, a Realtor at Long & Foster Companies provided a great perspective on older homes. He comments, “My market includes older homes (100+ years) thru new construction. Green equates to renovated, and even if the renovation is not to LEED standards, it is certainly more efficient than what was replaced.”

“By default, most of the new construction has green elements, most typically energy star appliances and natural light. While some buildings have marketed themselves as LEED and therefore ‘green,’ the initial appeal was hampered by bad design, which may have actually been a result of LEED standards. Poor design choices resulting in awkward spaces or rooms that are just too small meant that the units did not have the utility of competing buildings. When a bedroom is too small that you have to think about bed size, that is not a great option for the consumer.”

“Older homes certainly benefit from ‘greening’. Looking at my area’s “Cost vs. Value Report” from Realtor.com, our return from unglamorous projects like replacement windows is quite high. Having replaced all my windows, we saw a huge energy benefit. We also pumped in insulation while the wall cavities were open because it was easy to do.

But while low VOc paints and eco-friendly plywood are great concepts, we still have lead paint, radon and asbestos which are more pressing concerns.”

Dan echoes others regarding pricing. He continues by stating that when you are starting with a rehab or a gut, the incremental differences to make green choices are smaller. “I believe the true green niche is just too expensive in this economy. While savings on electricity and heating oil are helpful, it will not come at the cost of hugely more expensive homes,” according to Dan.

Home Choices….Not Fads

An Ann Arbor Realtor weighed into the discussion by pointing out, in her opinion, some of the “green” focus it irrational. She feels that, for example, by choosing a flooring material simply because it doesn’t require cutting down trees is not logical. “Oak trees are not an endangered species. And a number of the cork floors I’ve seen don’t look like they will be usable after 15 years of household traffic. What is the point here,” she counters. She finished her comments by pointing out that they work to help home buyers understand the long term impacts of their home choices, not just the current fads.

In the end, the best low cost way to green your home is through increasing weatherization your homes by making the home tighter through caulking, insulation, and weather stripping at the very least. Is the greening of American housing a fad? Some thought the Web to be a fad, and only a few years ago no one had heard the term “blog” yet here we are today!

Sunset Drive, Talmadge Heights, and the General Hospital Area; Sales Trends and Walk Scores

2009-08-10T09:40:00.006-04:00

The Sunset Drive, King, Hart, Holman, Gilmer, and Westover and other streets comprising the Talmadge Heights and General Hospital Area have seen limited sales this year. Sales data from the Athens MLS is as follows;

Statistics (8 listings)
	Low	High	Average	Median	Total
List Price	$103,500	$299,900	$179,725	$184,900	$1,437,800
Selling Price	$106,000	$317,500	$177,969	$173,600	$1,423,750
List/Sold(%)	93.02%	105.87%	98.52%	97.73%	--
Price/SqFt ($)	$0.00	$152.32	$117.21	$136.50	--
Days on Market	32	211	118	114	--

There are also another five under contract at this time.

Statistics (5 listings)
	Low	High	Average	Median	Total
List Price	$120,000	$240,000	$160,330	$150,000	$801,650
Price/SqFt ($)	$0.00	$130.17	$57.67	$64.27	--
Days on Market	28	377	143	103	--

What is most striking about this area of Athens is that both the ratio of list price to sold is higher than overall area numbers, but also the average days on market is much less than that of the overall Athens area. In this area of town you might find a home for as little as $100,000 with less than a 1,000 square feet and as much as $300,000 with 2,500 square feet worth of volume. I think what makes this neighborhood so attractive is its' walkability. Both Talmadge Heights and General Hospital Walk Scores below.

Quick Take: New Home Sales

2009-08-10T08:58:00.001-04:00

By Gregg Stratton, Research Economist

New Home Sales JUMP in June

New home sales in June increased by 11% from May to 384,000 on a seasonally adjusted/annualized basis. However, sales are still 21% below the June 2008 level of 488,000.
The 384,000 sales in June exceeded the consensus forecast among economists of 350,000.
The Midwest exhibited the largest increase in sales from May of 43% or 22,000 units.
The months supply of new homes declined from 10.2 in May to 8.8 in June nationally.
Approximately half of the new home sales in June were priced below $200,000. In May, 40% of new home sales were priced below $200,000.

What does today’s data mean for consumers?

The latest increases in both existing and new sales have primarily taken place in the lower end of the market – sub $200,000 – as this segment has responded more quickly to higher inventories and foreclosures through more substantive price declines than other segments.
Sales for new and existing homes have each increased for three consecutive months through June.
This appears to be the beginning of the recovery for the housing market, although it is conditional on continued improvement in the credit markets and consumer confidence, and assumes that the intended efficacy of the federal stimulus will materialize in the coming months.
NAR, for its part, is forecasting existing home sales in the second half of 2009 to be 10-20% higher than the second half of 2008.

Daily Forecast Update

NAR monthly official forecast as of July 1
GDP Q2: -1.0%
GDP Q3: +0.2%
GDP Q4: +1.0%
Unemployment rate by the end of 2009: 10.5%
Average 30-year fixed mortgage rate by the end of 2009: 5.4%

When Selling your Home, What Hill do you Die on?

2009-08-09T11:56:00.001-04:00

Posted on April 27, 2009 by hankbailey

Selling a Home in Athens or in your town? What hills do you die on? I am referring to the negotiations process. What areas do buyers seem to compromise on and what areas are they going to dig in their heals and hold firm?

According to the National Assocication of Realtors, home buyers last year had some distinct areas that they would negotiate on and some that they were not so firm on in the home buying process.

As far as the top three things that both first time home buyers and repeat buyers would budge on, both sets of buyers matched in their answers. Both said that on Price and Size of Home they negotiated the most. First time home buyers in their third highest area of compromise however picked “distance from work” as their third biggest area to compromise while repeat buyers felt the condition of the home was something they were more willing to negotiate on over location to work.

Areas of little to no compromise? The number one area in which buyers would not compromise was in the distance of the home to school. The quality of schools and neighborhoods were second and third least likely to be compromised on respectively.

Which group made up the highest percentage of buyers who felt they made no compromise in their recent home purchase? Repeat home buyers. Almost 2 in 5 made no effort to compromise what they wanted in a home. I guess this means that Gen Y is more flexible and easy going than we older generations! Remember the next time you buy a home that for future resale you need to consider these areas of little to no compromise to make sure the future marketability of your home is secure.

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