Can You Afford That House?

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

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.

From Savvy with Staging to Scintillating about Short Sales!

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

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."

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!

Ways to Expedite Sale

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.

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!

Months Supply of Housing Inventory in Oconee County, GA

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!

Planning Renovation During a Tough Economy

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.

Did You Know: Size of Home Purchased

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

Copyright National Association of REALTORS®, Reprinted with permission.

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!

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

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!

Foreclosures in the Greater Athens GA area

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

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:

• www.ansonboroughofathens.com
• www.cottagesatcreekside.com
• www.historicgeorgian.com
• www.mooseclubcondos.com
• www.redoakvillageofathens.com
• www.summitofathens.com
• www.terracesofathens.com
• www.thelodgeofathens.com
• www.theseasonsofathens.com
• www.woodlandsofathens.com

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?

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

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

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.

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!

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

Taking the Long Out of the Short

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	--

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!

Athens GA Real Estate Trends and Analysis

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.

Does your REALTOR® Blog?

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.

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

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!

No Down Payment No Problem; FHA to the Rescue

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.

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!

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

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!

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!