The article from the WSJ referenced above points out, “You can deduct your real estate taxes. And you’ll get a tax break on capital gains–if any–when you sell. Sure, you’ll need to do your math. You’ll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.”

Let’s do a comparison.  I am going to pull.....

For the complete blog post please visit the LawrencevilleHomeStore Blog!

Nationwide home values dipped 0.2 percent in the third quarter and declined almost 4.5 percent from third-quarter 2010. In Atlanta the quarterly change was a negative 3 percent for the quarter,but Atlanta home values have dropped 10.5 percent year over year.  This data updated through November 11, 2011 by Zillow.

Lawrenceville, Georgia home prices down almost 6 percent for the quarter and 11 percent year over year. The “bright” spots would be....

For the complete blog post please visit the LarwrencevilleHomeStore blog.

It is always wise when selling foreclosures and short sales to broach the subject of 'purchase appraisals' with my Buyer clients when we get close to being on the homeward stretch of getting a sale towards a closing. 

I generally find it is important to explain the difference of a lender or "purchase" appraisal and "market value" of a home.  Many people feel that appraisals tell market value. They don't.  An appraiser who is going out to look at a home with a contract in hand, in this case of one of my recent sales at Sterling on the Lake which was at $180,000, is only expected to find contract price. 

The appraiser needs to get contract price to show the bank the collateral for the loan is sound.  The bank doesn't care, and the appraiser knows this, if the house is worth "more" or over contract value. For the buyer, other than a "feel good" it doesn't matter either as any equity cannot be used any longer to offset MI (mortgage insurance) or down payment. 

The position the appraiser is on a purchase appraisal is that if they come back with a figure much higher than contract they have to prove why they did and sometimes this leads to appraisal reviews and subsequently many lenders may not use that appraiser again thinking them to be too aggressive.  This causes appraisers to go to the least common multiple which is to just appraise a house at or very close to contract price. 

After looking at Realist.com I found a range of value on this specific Sterling on the Lake home of $229,511-$304,235.  There was a recent sale on another 4BR in Sterling on the Lake at $300,000 so this high end is conceivable to a point in looking at market value.  The reality is that an appraiser is going to look on the low end of tha scale or range of homes that he picks.  Also, I pulled another CMA with a completely different set of comps that shows an estimated value of $218,445.  If I were trying to pick comparables to show "only distressed homes" (foreclosures and short sales) I could do that eliminating the use of non-distressed sales and pull it down closer to contract price.  All this to say that the appraisal process defines a value based on what the maker of that market valuation or appraisal is looking to hit.  I think the subject property in this sale is worth between $218,500-$229,500 personally knowing the upgrades and actually having gone into other homes in the neighborhood.  Now what this means is that at a sales price of $180,000 if the home is worth $220,000 my client is getting about a 19-20% discount to market value. 

To put this into perspective, in Flowery Branch and according to RealtyTrac the average "foreclosure" resulted in a 20% discount last month to market value.  For a short sale to compete with bank owned is tremendous.

What RealtyTrac quotes as discounts to sales price is always based on the average sales price in an area.  NOT a discount to list price, but discount to average sales prices.  Never forget this point. List price means nothing if you are trying to get in your mind during negotiations a discount equal to what the media is using to define discount percentages and that is average market value.

In this neighborhood there were 39 sales in the past year that averaged $240,000.  This would mean you are buying in at a 25% discount to the market related to sales in Sterling on the Lake!  This is the real figure to focus on.  Appraisals can be manipulated to tell whatever story the appraiser wants to tell the bank.  I could come up with a different figure.  What matters is that if we look at what the company that reports to the media (which is what RealyTrac does) says. They say to take a sales price and divide it by NOT list price, but by average sales price for that market.  This again is not saying the house is worth $240,000, but that buyers buying into this market are paying this much to get into it on the average.  In this case my client bought into this neighborhood for 25% less!

I hope this is useful information.  I dislike the appraisal process as it is too opinionated and once again it does not show market value, but it is a proof regarding the bank's collateral.  On the other hand as I say people hear things from the media regarding discounts through buying REOs and short sales and I find that by defining how they come up with those discount numbers we can more reasonably compare apples to apples.  This cuts down on any chance of Buyer disappointment when the bank's appraisal comes back slightly over contract price! 

At the end of the day, or the buying process, the only "bad" appraisal is the one that comes in below contract price.  If this happens then chances are the deal is dead and there is a lot of gnashing of teeth, so to speak. Thankfully I haven't seen too many of these of late.

As recently as two years ago mortgage rates were hovering in the 6.0%-6.5% range.  The net result is that your mortgage payment today would be substantially less than most rental units.  The Wall Street Journal notes in their article entitled 10 Reasons To Buy a Home, “If inflation picks up, you won’t see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.”  I don’t think we will see them much below where they are at today.  Just like with housing prices, trust me on this one, you won’t catch a bottom on mortgage rates....

For the Complete Blog Post please visit http://lawrencevillehomestore.com/blog/.

“Enough with the doom and gloom about homeownership. Brett Arends explains why owning a home is a good thing.”

Source; RealtyTrac

So I asked myself, “Why wouldn’t this apply to Lawrenceville, GA?”  The answer is that it does many times over.  To the right note the Lawrenceville heat map as defined by RealtyTrac. The darker the red the better the deal in terms of foreclosure discounts as compared to the avearge overall sales price of each zip code!

You can get a good deal. The story goes on to note what we all know to be true that this is a buyer’s market.  It goes on to say, “We’re four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor’s Case-Shiller Index, which tracks home prices in 20 big cities.”

The logical question that many ask are whether prices will fall further....

For complete Blog Post please visit http://lawrencevillehomestore.com/blog/.

Are there foreclosures in the 30044 zip code within your price range?

For the Complete Blog Post with Heat Maps  http://lawrencevillehomestore.com/lawrenceville-ga-foreclosure-heat-map-september-2011-market-trends-foreclosure-data/

On the demand side of the equation, during Q2 – 2011 their were a total of 2670 sales in Metro Atlanta. It is important to note the difference in seller types that make up this data component. 1433 sales were bank/government owned properties while 1237 sales were Market Sales, or qualified transactions where the seller was not a bank or government entity. For Q2-2011 in Gwinnett 53.67% of all sales were bank or government properties.

For the Complete Blog Post including Charts please go to http://lawrencevillehomestore.com/atlanta-business-chronicle-home-quarterly-report-gwinnett-county-ga-foreclosure-and-sales-activity/.

Prices have dropped a little over 30 percent since an April 2006 peak.  This figure does include distressed sales however.  When distressed sales (bank-owned homes, foreclosures, and short sales) are taken out ...

For the Completed Blog Post please try the LawrencevilleHomeStore Blog at http://lawrencevillehomestore.com/foreclosure-slowdown-stabilizes-real-estate-values-how-about-lawrenceville-ga/.

Nearly 33% of all U.S. homes sold in the second quarter of  2011 were in some stage of foreclosure, with short sales making up 12  percent of all residential real estate sales according to RealtyTrac. 

Based on data from RealtyTrac, including average sales price, average discount to overall market value, percent of sales, and average days to sell a short sale, Foreclosure News Reportcompiled the following list of the Top 10 metropolitan statistical  areas (MSAs) for buying a short sale..

1) LOS ANGELES

2) PHOENIX

3) CAPE CORAL-FORT  MYERS, FL 

4) OXNARD-THOUSAND  OAKS-VENTURA, CA

5) RENO-SPARKS,  NV

6) SAN FRANCISCO

7) SAN JOSE

8) PORTLAND

9) ATLANTA

Atlanta had an almost 22 percent increase in short sales quarter over quarter. In the metro Atlanta 14 percent of all sales were short sales last quarter.

10) MILWAUKEE

Default notices were filed for the first time on nearly 80,000 U.S. properties last month, which is a nine-month high and a staggering 33 percent increase from July. That figure is the largest month-over-month increase in four (4) years!

“The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems,” said James Saccacio, chief executive officer of RealtyTrac. “It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process.”

How about REOS? Lenders across the nation took close to 65,000 properties in August. The report noted that five (5) states accounted for over half of all U.S. foreclosure activity in the month of August. California led the way followed by Florida Michigan, Illinois, and Georgia which posted the fifth highest state total with 11,743 properties with foreclosure filings in August.

Which Georgia Counties faired the hardest? Fulton, Dekalb, and Gwinnett were 1, 2, and 3 in order and Cobb came in a close fourth.  These four Georgia counties contained about 2 out of every 5 foreclosures in the State of Georgia in August by themselves.

This comment comes up every now and then.  "We need some activity!  We need more showings!!!"

Yesterday on one of my Oconee listings which I have had listed for 32 days we just got an offer.  What is most interesting is that it had only one showing! 

This is what I see more and more of as technology continues to evolve the way buyer’s purchase homes.  It seems that we have less physical showings at the properties and more online activity that results into very serious buyers by the time they see a particular listing.

Today for example I am showing properties to a buyer who scoured the MLS overnight to choose or rule out which properties she wanted to see.   If it were not for the help online to look at houses, I would have had 20+ houses I could have shown her today to see if she had an interest in any one of them!  As a result of having the tool to look at these homes online she whittled it down to 5 homes she wanted to see that she had particular interest. Now does it mean that those other 15 houses had 'no activity?"  Not at all.  This buyer looked through everything there was to see on each of these homes in detail!

The difference is that the internet allowed her to be of particular interest on five of them. She is more motivated and her time is used more efficiently than if I brought her through all 20+ homes in her preferred zip code within a price range that 'might have been of interest.'

I say all this because I know traditionally when we sell, and as ‘traditionally’ as a very few years ago, most people expect a lot of showings!  Most feel that if their homes are not showing several times a week then their home may not sell!  That is just not the case today.  As a seller I would prefer it that way because instead of having a bunch of tire-kickers walking across my carpet and me having to have my house show ready all the time it gives us the ability to have the online search process bring us really qualified and interest people!

It is my goal to always help to create the property expectations in the sales process!  I have seen homes sell with one showing and I have seen homes sit with 50!  Showings don’t equate to a contract, but rather the online process does.   I had a call yesterday on another listing from a buyer in Florida who saw a short sale listing of mine online, never seen it in person before, and she had her agent in Georgia write up an offer and submit it to me based on what she saw on the internet! 

The process works and this is how Buyers rule out or choose to be hot on particular homes today.

The average sales price of homes in foreclosure or bank owned was $164,217 in the second quarter, down less than 1 percent from the first quarter and down nearly 5 percent from the second quarter of 2010. The average sales price for homes in foreclosure or bank owned was 32 percent below the average sales price of homes not in foreclosure.

“With average prices on distressed real estate trending down and average discounts trending up, this report is clearly good news for well-positioned buyers and investors looking for bargain real estate that will build them wealth in the long term and often cash flow as rental real estate in the short term,” said James Saccacio chief executive officer of RealtyTrac. “Maybe less evident, however, is the good news in this report for distressed homeowners looking to sell, and even lenders saddled with large portfolios of delinquent loans.

“The jump in pre-foreclosure sales volume coupled with bigger discounts on pre-foreclosures and a shorter average time to sell pre-foreclosures all point to a housing market that is starting to focus on more efficiently clearing distressed inventory through more streamlined short sales — at least in some areas,” Saccacio continued. “This gives distressed homeowners who do not qualify for loan modification or refinancing — or who are not interested in those options and want to sell — a better chance of completing a short sale to avoid foreclosure. Streamlined short sales also give lenders the opportunity to more pre-emptively purge non-performing loans from their portfolios and avoid the long, costly and increasingly messy process of foreclosure and the subsequent sale of an REO — which may end up selling for a lower price than it would have as a pre-foreclosure short sale and in the meantime further stresses already overloaded REO departments.”

Pre-foreclosures, also called short sales, had an average sales price across the U.S. of $192,129, which translates to a discount of 21 percent below the average sales price of non-distressed homes. The biggest issue has always been how long it took a pre-foreclosure or short sale to close!  Pre-foreclosures or short sales that sold in the second quarter took an average of 245 days.

Nationally, REOs or bank owned homes had an average sales price of $145,211, a discount of nearly 40 percent below the average sales price of non-foreclosure or non-distressed homes. According to RealtyTrac, this is an increase from a 36 percent discount in the previous quarter and a 34 percent discount in the second quarter of 2010. REOs that sold in the second quarter only took an average of 178 days to sell after being foreclosed on.

Georgia foreclosures, pre-foreclosure, or short sales accounted for 38 percent of all sales in the state during the second quarter of this year. 

Foreclosure Sales Percent of All Sales - Top 10 States

Chart and Press Release Source; RealtyTrac U.S. Foreclosure Sales Report

In Georgia the biggest deals still seem to be REOs or bank owned resales.  The average bank owned home discount to market value was over 41 percent in Q2 of this year.  What is surprising is that banks are allowing on pre-foreclosures or short sales for more of a discount than in the past with the average Georgia pre-foreclosure selling at a third below non-distressed sales.

For Q2 of this year Georgia saw an almost 17 percent increase in foreclosure activity over the first quarter of the year.

About 7 out of 10 homes sold in the second quarter of this year were affordable to families earning the national median income of slighly over $64,000. 

"At a time when home ownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales," says Bob Nielsen, chairman of the National Association of Home Builders. "That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery."

According to the index, Youngstown-Warren-Boardman, Ohio-Pa., was the most affordable major housing market during Q2 with just under 94 percent of all homes sold found to be affordable to households earning the area's median family income of $54,900. Other cities ranking highest nationwide in affordability are: Syracuse, N.Y.; Indianapolis, Ind.; Dayton, Ohio; and Lakeland, Fla.  In the State of Georgia Atlanta and Gainesville were deemed to have had 78 and 79 percent of all homes sold to be affordable to those earning the median income for those respective cities placing both in the top 50 markets in the South and ahead of the national average.

The index deemed to be the least affordable market in the U.S. happens to be New York-White Plains-Wayne, N.Y.-N.J., in which 25 percent of all homes sold during the quarter were affordable to those earning the area's median income.

Trulia released its Summer 2011 Rent vs. Buy Index, comparing the cost of buying and renting a two-bedroom apartment, condominium, or townhouse in America’s 50 largest cities based on population.

"While recent stock market volatility on top of the slow economic recovery makes homebuyers nervous, it has not destroyed the American dream of homeownership. However, prospective homebuyers, who are ready and qualified to buy, face an uphill battle despite falling home prices and record-low mortgage rates,” said Ken Shuman, Head of Communications at Trulia.
 
“Today, many banks are actually less enthusiastic about approving residential mortgage applications, which has dragged out the home buying process. Until a middle ground on lending practices can be met, many highly-qualified buyers may be forced to be renters by choice for now.”

“Many aspiring homeowners are on the fence about renting and buying in today’s market. Should they take advantage of falling home prices and low borrowing costs, or should they continue to rent until the economy stabilizes?” said Ken Shuman, Head of Communications at Trulia. “Price alone should never be the sole factor in deciding to purchase a home. Instead, buyers should first ask themselves if they plan to live in the home for at least seven-to-10 years, could make monthly payments on the house, and have enough cash in the bank for a down payment and an additional six to eight months worth of mortgage payments. If you can answer ‘yes’ to each of these questions, then the cost of buying a home definitely outweighs renting in most cities.”

Well what about Atlanta?  Metro Atlanta has remained fairly consistent over the past year in terms of being a value to the home buyer versus renting.  Trulia has a neat tool that allows you to view interactive data visually illustrating how the cost of renting versus buying has changed over the last six months and this calendar year. click here.

Metro Atlanta's scores are evidence that it is much less expensive to buy as a matter of fact and according to Trulia's index, as opposed to rent.

Photo Source; Trulia.com

“Unfortunately, the falloff in foreclosures is not based on a robust recovery in the housing market but on short-term interventions and delays that will extend the current housing market woes into 2012 and beyond,” Saccacio continued. “A stabilizing economy and improving job market are the long-term keys to a housing market recovery."

Also according to the report, with an 18 percent monthly increase in foreclosure activity, the State of Georgia posted the nation’s third highest foreclosure total in July. There were a total of 11,461 Georgia properties with foreclosure filings. Why the big boom in Georgia foreclosures?T

The overall increase in Georgia foreclosure activity, according to RealtyTrac was driven largely by a 25 percent month-over-month increase in REO activity.

Which Georgia counties led the way in foreclosure activity in July?


Source; RealtyTrac.com

Other areas of interest include Barrow with 168 new foreclosure filings, Jackson 110, Clarke 105, and Oconee at only 29.

Broker Jesse Buckler as the story goes told Sambrotto "the condo was priced too low and wasn’t attracting the right buyer for the condo."

"At first he wouldn't let me increase the price," Buckler said. "I told him I know what I am doing—the market is picking up."

In the end the condo attracted multiple offers and ended up closing for $150,000 more than the original asking price.

WARNING ALERT IS OVER – (back to me being me – okay, maybe you should still be on alert)

"What does an Appraiser Gain by Not Appraising at Marketing Value?" This question came up yesterday in a conversation I had with a Buyer client of mine who is purchasing a foreclosure in Snellville, GA. The appraisal was done by her 'bank' in relation to a purchase mortgage on this property.

When my client hit me with the question above I asked her to turn the question around, “What does an Appraiser Lose by Appraising a property at Market Value?”

The home appraiser, predominantly working for banks today in 2011, has nothing to gain by appraising a purchase any higher than contract value, if they can hit contract value at all. If anything, the appraiser has more to lose if they appraise above contract or sales price when that appraisal goes into appraisal review and 'others' question the appraisal and whether or not it was done based on criteria that are acceptable to that particular bank and banking guidelines in general. If the bank deems an appraiser as not being prudent enough in relation to appraised values then that appraiser may lose future work. With an almost 10 percent unemployment and higher in Metro Atlanta I don’t see many appraisers wanting to lose potential work over giving the home buyer a feel good appraisal ‘much above’ contract price.

Even in a case like this where we are talking about foreclosures (REOs) and resales, all the appraiser and all the bank who is doing the loan cares about is whether it meets contract price. There is no benefit to anyone to have an appraised value above sales price.

Ironically too within this appraisal the appraiser only used foreclosures and short sales. No other sales besides ‘other distressed sales’ were used in the subject property's neighborhood. What infuriates me is that they pulled sales that were over 2 miles down the road to get their 3 sold’s for the appraisal!

What they did use in the neighborhood;

Listing .1 mile Away
SNELLVILLE 30039

Sold for $30,000 over appraised value of subject property

What they didn’t use in the same neighborhood;

Listing .2 mile Away
SNELLVILLE 30039

Sold for almost $60,000 over appraised value of subject property

Listing .1 mile Away
SNELLVILLE 30039

Sold for almost $60,000 over appraised value of subject property

What’s Under contract in the same neighborhood that we know about that was not part of this appraisal;

Listing .1 mile Away
SNELLVILLE 30039

Under Contract with List Price of $40,000 over appraised value of subject property

Listing .2 mile Away
SNELLVILLE 30039

Under Contract with List Price of $30,000 over appraised value of subject property

*note* This property however was in a multiple offer bidding war when it went under contract meaning that it most assuredly got bid up.

Now granted, an Under Contract listing is not sold until you get to a closing, but now-a-days we see Under Contract listings as well as Active Listings in some purchase appraisals so there is now precedent today to use them.  Yes, I am asking myself why the beef?  Why am I so bothered by this?  We did hit contract price and another foreclosure will be sold as a great deal to another Gwinnett buyer after all.

The issue is that I have to tell all the buyers that I work with, even those buying foreclosures once again, not to be deflated by the appraised value when it comes back.  It won’t make them happy and make disappoint them.  When you realize however that the system is not designed to tell market value of a property, but is designed to cover a minimum to know that the bank’s collateral is covered then you are okay with the appraisal’s findings as they mean nothing, as long as the appraisal is for at least market value.

Another issue I see all the time is that of using comparable sales and square footages to make adjustments to the subject property (i.e. the house your client is buying) in an appraisal.  You see, the bank’s appraiser working for the buyer measures square footage of the house the loan is going to be on.  The one you are buying! They then take square footage figures from tax and other records on comparable sales to compute adjustments in value and cost per square foot.  The funny thing is that they don’t go and measure those other sales.  They can’t!

This means the appraisers are comparing apples and oranges.  Tax records rarely if ever show correct square footage on anything.  This means if the appraiser is using bad information on comparables without ever going into those comparables and without measuring those comparables then how unfair is it and how broken is this system that allows for an ‘appraisal’ of value on a property and yet they have no way of knowing if what they are comparing is accurate as they have never seen those comparable sales in real life!

Every property appraisal has a range of value. This one for example ranged from $180k’s to $280k’s and depending on what sold comparables you take it is worth higher or lower.  This is why any appraiser can come up with a value different than the next one.  For my buyers the purchase appraisal and contract price are on the low end of this range.  Lucky for them!  On the other hand I think it safe to say that this home is worth $250k’s-$280k’s based on actual sales and sales of homes under contract about to close within a tenth of a mile from the purchase.

That is exactly what I told my client and they were quite pleased.  I just hate that due to the system and expectations of what appraisals are supposed to be all about that buyers do get the wind knocked out of their sales quite often.  We do see foreclosures where buyer or purchase appraisals come back 10-25% above contract value, but more times than not they are pretty close to contract or sales price.   According to dictionary.com an appraisal, “the act of estimating or judging the nature or value of something or someone.” The fact is that in the U.S. today, and for the past few years, appraisals have not been the act of estimating value.  They have been the act of “can we cover the bank’s collateral.” I try and make sure all my Buyers understand this, but we have been taught over the years that appraisals mean what the dictionary says it means and that is not the case.

This appraiser did his/her job.  No doubt.  Not saying that they didn’t.  Just saying that the system we all live in is broken and doesn’t represent what people have been taught that it should over past history. I guess that is why they made blogs. To vent and hope someone might understand!

Locate and map nearby via GPS elementary, middle, and high schools or search listings across the U.S. View detailed ratings, reviews, and test scores from GreatSchools, the nation's most trusted independent source of school performance information for over a decade. Includes private schools as well!  Now you can use GreatSchools while out house hunting to go along with your Zillow app!  This is a favorite website of mine that I refer to home buyers all the time! Whether you're a parent, real estate professional, or education researcher, finding great schools is now at your fingertips. For iPhone, iPad, or iPod touch.

According to Great Schools key features include:

• Search the latest school information for more than 125,000 K-12 schools in the U.S., including public, public charter, and private schools.
• Map and compare schools for any city, based on your current location.
• Filter schools by public or private, grade level, distance, GreatSchools Rating, Community Rating or, enrollment size.
• Browse parent reviews, recent test scores, and district info.
• Save schools to your personal list of favorites for quick retrieval later.
• Share schools with family and friends.

A time-honored business principal maintains that consumers generally base their buying decisions on emotion. Only later do they use logic, often to rationalize their emotional decisions.   

    Homesellers, working closely with their agents, will prepare their homes to evoke positive and personal emotions for those who come inside. They should also create “takeaways” that will keep those fond memories resonating in prospective buyers.

    “One effective takeaway is a personal letter from you describing your experience of falling in love with the home when you were the buyer,” said Kay Steele Faulk, a Lake Village, Ark. freelance writer.

    The letter, presented on brightly colored stationery, can describe the fun of meeting your new neighbors and the warm friendships you’ve established in the neighborhood. It can also recall joyous holidays around the home, show pictures of your home during special times and list neighborhood activities scheduled throughout the year.   

    “You should recall a memorable moment of coming home, such as after the birth of a child or after a long vacation, because these are all things buyers can relate to emotionally, they will serve to reinforce the positive feelings buyers experienced at your home,” Faulk said. “And to satisfy buyers’ logic—which they will use to justify their emotional connection to your home—also describe the loving care you’ve given the home while there.”

    Once all the words are in play to touch upon the emotions, then it’s time to write about things that will relate to buyers’ practical sides.

    Russell Goldstein, a New Jersey-based writer who often helps homebuyers prepare personal letters, stresses that this is the perfect way to say all the little things you can’t always place in advertisements and fliers.

    “You can list your routine maintenance tasks plus any remodeling, updates or upgrades you’ve done in the years you have lived there,” he said. “Include anything that gives buyers a sense of confidence in your home’s current condition, and be sure to mention any special features you paid high dollar for, such as thicker exterior walls, which have better insulation values. These are your home’s key marketing details that make it a better buy than the competition down the street.”

    A second effective takeaway is a home brochure created around high-quality color photographs of your home’s interior and exterior. “Use photos that highlight your home’s most appealing features,” Faulk said. “Just be sure each photo has a caption or short description that helps buyers remember. Even with a brochure, you still need that all-important section meant to satisfy buyers’ logic. This can simply be a descriptive sentence followed by a list of your home’s key marketing details and the T.L.C. you’ve given [the home] as owner. To make for easy reading, use bullet points to highlight each item of your list.”

    If you’re good at writing warm personal letters or if you have the ability to create a professional-looking brochure, it’s quite acceptable to save money by doing it yourself. If not, turn to a professional copywriter to create a compelling takeaway that ensures a lasting emotional connection with buyers.

Buying a new home can be a huge, complex undertaking, especially when it’s your first time. That’s why it’s important to have an experienced real estate agent guiding you along the way.

    In a survey conducted earlier this year by Prudential Real Estate and Relocation Services (PRERS),  a Prudential Financial, Inc. [NYSE:PRU] company, 75% of respondents highlighted the importance of real estate agents in the process of buying or selling their home, with only 24% saying agents are helpful but not imperative.

    “Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes,” said James Mallozzi, PRERS’ chairman and chief executive officer. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”

    First-time buyers need to look at their financial situation and crunch the numbers to see if this is the right time to buy. Chances are the numbers they see today will be the best they will see for some time, which is why so many are considering homeownership.  

    Still, understanding the money that goes into a home purchase is important. The biggest mistake new buyers make is underestimating the costs of buying a house and maintaining it over time.

    Homebuying requires more than a down payment as closing costs and future expenses will figure prominently. Many experts agree that homeowners should have 1%-3% of their homes’ purchase price in savings for improvements and surprise expenses. Mortgage experts also say it’s wise to have at least six mortgage payments in the bank after a closing.

    While those numbers may not be feasible for everyone, if you are spending above your means on a new home, you may find yourself in financial trouble fast.

    Inspections are important for the first-time buyer, as they list repairs that will be needed for the home. A buyer should put together a short-term and long-term plan based on the inspection so they know how much money they will need in the months and years ahead.

    As renters, people are accustomed to paying rent and basic utilities. As homeowners, you’ll also pay for water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and homeowner’s association dues, plus yard care, snow removal and other expenses unique to your location.

Good things come in smaller packages. At least that’s the feeling today among many homebuyers, who are increasingly interested in smaller spaces instead of the gaudy, sprawling homes that were popular in the ’80s and ’90s.

    Many agents believe that smaller homes are more in demand because the Baby Boomer generation is starting to downsize. Boomers no longer need four or five bedrooms and are looking for spaces that are more in tune to their lifestyles as empty nesters. In fact, the latest U.S. Census Bureau reported that a little over 60% of all U.S. households are comprised of just two people or less.

    While affordability is the No. 1 driver for this trend, other factors do play a role, as buyers are more concerned with how much they will be paying each month on their energy, water and heating bills.

    “You can add better insulation, new windows and insulated doors, but nothing saves energy like a slightly smaller home,” said Danny Gough, an energy auditor for the consultant firm, Energy Solutions, based in N.C. “We have seen an interest in smaller homes because of this.”

    Conservation is the new watchword in new-home building and existing home sales, as buyers want to conserve their larger down payments and their future dollars by buying homes they need, not homes that impress the neighbors.

    According to a recent study by the National Association of Home Builders, by 2015, new homes will not only be greener and packed with more technological features than today’s homes, but they will be 10% smaller. In its report, “The New Home in 2015,” the NAHB points to the economic downturn for a “less is more” mentality. 

    “People are looking beyond what they pay in principal, interest and taxes and look closer at what they will be paying each month,” said Stephen Melman, director, Economic Services, Economics and Housing Policy for the NAHB. “Buyers, despite excellent prices and low interest rates, are cautious and are going to purchase the home that they need and not necessarily even the home they can afford. They are very careful.”

    This trend has developed quickly. At the beginning of 2007, the median floor area of new homes started was just over 2,300 square feet. The median floor area of new homes dropped to nearly 2,100 square feet by the end of 2010.

    “That’s close to a 9% decline in floor area over a very short period,” Melman said. “Total floor area isn’t what’s important there, but the amenities inside the home itself.”

    Rooms that are falling out of favor in new homes include media rooms, sunrooms, mudrooms and libraries. Echoing entryways, vaulted ceilings and giant pantries are also less popular.

    The report even said that the living room is dying out and will either vanish, merge with another room or become a smaller parlor.

    “People are asking what they can truly do without,” Melman said. “Almost 50% of buyers surveyed said they would be willing to give up the living room if affordability is an issue.”

Today’s prospective homebuyers are increasingly interested in a property’s outdoor living space as they are its interior. Savvy agents understand this powerful trend and are staging homes on two fronts – the terrific indoors and the great outdoors.  

     The following tips will help ensure that your backyard is as distinctive at your home itself. 

· Make your Backyard Homey: Create a conversation area with some furniture. The area needn’t be elaborate; just two chairs pulled close together with a table between can make even the most basic concrete patio special. Just the idea that an outdoor eating option is possible makes a property more inviting. Adding accessories like a small table, an inexpensive outdoor rug or a few pots filled with flowers will make the area even more attractive.

· Remember the Kids: If you have an old tree house, fix it up and paint it bright colors or add sporty designs that will make other kids fall in love with it. Just make sure the tree house is safe. Add a tire swing to a tree and keep an orderly basket of balls, flying disks and a jump rope so kids dragged along on the showing can play in the yard. Swing sets that are old and unsightly should be removed or refurbished to look new.

· Fire is Hot: There’s nothing like sitting around a fire and enjoying the company of friends and loved ones, which explains the growing popularity of fire pits and outdoor hearths. Few home improvements create the “wow” factor that a backyard fireplace will, and many homeowners are adding a fireplace to their outdoor landscape to recreate all the appeal of their home’s interior outside in the backyard.

· Simple Fixes: You needn’t go overboard with the changes in your yard. Sometimes, the easiest fixes will create a look that people will remember. Do a thorough inspection and replace any damaged boards on your deck or fence, and apply a fresh coat of paint, stain and sealant if the finish requires it. You should also weed and groom your garden and add some perennials for color.

Real estate consumers today can find ample value in distressed homes – properties that are under a foreclosure order or up for short sale. In many cases, however, “distressed” speaks more for the condition of the homes than their recent financial histories, as they’ve sat empty for extended periods and have been subject to vandalism and theft.

    Those considering homes in need of repair and renovation should consider a 203k mortgage, which enables homebuyers to finance both the acquisition and rehabilitation of the property with just one loan.

    “FHA 203k purchase loans are the perfect financing vehicle for homeowners seeking the value proposition offered by REO homes,” said David Wind, president and board chairman of White Plains, N.Y.-based Guaranteed Home Mortgage Company, in a company statement this June. “Home buyers’ ‘perfect’ home can be purchased in less than perfect condition with a single-close loan product that allows repairs and remodeling.”

    There are two types of 203k loans: the 203k streamline and the full 203k. The 203k streamline is the most popular among homebuyers and lenders.

    “The maximum allowable in repairs is $35,000 under the 203k streamline and it does not allow any structural repairs to be done to the home, unless [the repairs are] a result of an unforeseen circumstance,” explained David Krushinsky, a certified mortgage planning specialist for Mesa, Ariz.-based AmeriFirst Financial Inc. “The full 203k allows structural repairs and will allow the buyer to exceed the $35,000 in home repairs. Both loans allow up to $1,500 in swimming pool repairs.”

    Contractors chosen to perform repairs must be licensed, bonded and insured, and they usually must provide the lender with a resume and two client-reference letters.

    “After the close of escrow is when all the rehabilitation work begins,” said Krushinsky. “Funds usually aren’t released immediately so it’s important for your contractor to start work in a timely manner. Typically, if they’ve been in business, they have existing relationships with vendors so they can order materials and begin work. If not, the project may take longer than anticipated.”

    Since the 203k mortgage is based on the home’s potential value after repairs -- not its existing value -- you can be approved for a higher loan amount. The mortgages also carry long-term-fixed rates, are insured as soon as they fund, and include escrow accounts for the scheduled repairs.

    Loan amounts are capped according to local FHA limits. Only owner-occupied properties of one to four units qualify for 203k mortage financing; homes also must be at least one year old.  

One of the most important jobs for your real estate agent is to determine the value of your home by developing a Comparable Market Analysis, which will be used in pricing the home for the right amount.

    If your property isn’t attracting serious shoppers, your agent may recommend that you invest in an appraiser to get a second pricing opinion, as the appraiser will come in with an independent, unbiased opinion to help ensure your price is correct for the market.

    “An appraisal is important in today’s market especially, because it’s an objective and unbiased source of information,” says Michael H. Evans, president of Chico, Calif.-based Evans Appraisal Service Inc. “The appraiser is an independent professional who performs a service for a fee rather than for a commission and is therefore not as invested as others are who are making pricing decisions.”

Appraisals allow for homeowners and buyers to establish “fair market value.” In addition, an appraisal allows a lender to know how much they can safely lend.

    “Credible opinions of value can help to stabilize the real estate market,” says Joseph C. Magdziarz, president of Chicago-based Appraisal Institute, a global membership association of professional real estate appraisers. “Appraisers today are doing the same thorough, fact-based research and analysis they have always done.”

    A home appraiser will compare the condition of your house in relation to the comparable properties in the neighborhood and will give you a reasonably good idea where your house fits in relation to recent sales.

    According to Evans, a home appraisal can range in length from two pages to more than 100. It will include details about the house, a description of the neighborhood and side-by-side comparisons of similar properties. It will also contain an evaluation of the area’s real estate market, notations of major problems with the property that will affect its value and an estimate of the expected time it will take to sell the property.

    Earlier this year, the Appraisal Institute released several tips for consumers and guidance for homeowners and buyers seeking to ensure their sales are completed in a timely manner.

• Make sure the lender hires a qualified appraiser (such as a designated SRA, SRPA or MAI member of the Appraisal Institute). The lowest-priced appraiser does not necessarily equate with the most qualified. This is a time to get the numbers right.
• Accompany the appraiser during the inspection of the property if possible. The more active of a participant you are in the process, the more you will understand it, and be able to catch any errors.
• Request a copy of the appraisal report from the lender. Federal law requires that you receive a copy of the appraisal within 30 days.
• Appeal the appraisal if appropriate. Market conditions do change, especially in these economic times. If you feel that new information may change the appraisal, be sure to speak up.
• Have your agent ask the lender to order a second appraisal by a qualified and designated appraiser.
• File legitimate complaints with appropriate state board or professional appraisal organizations.

    Remember, you needn’t agree with the outcome of an appraisal. You and your agent can work with the figures and determine if you should change the sale price or not. A home appraisal, no matter how scientific, still ends up being the opinion of the appraiser and to some degree is a judgment call.

• Foreclosures Off 29% in 2011; http://t.co/6aGZy3L 1 hour ago
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• Clem Lancey just reviewed me on Zillow for purchase of a Foreclosure in The Falls of Braselton! - http://t.co/CHLMdt3 20 hours ago
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• I'm at Hedgerows (camp branch rd, dacula) http://4sq.com/oVBuAc 5 days ago
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• Which Banks Are Pursuing the Most Short Sales?: http://t.co/6jHpoFw via @AddThis 1 week ago

Twitter Updates

• I'm at Falls of Braselton http://4sq.com/q9EQBR 1 day ago
• I'm at Hedgerows (camp branch rd, dacula) http://4sq.com/oVBuAc 4 days ago
• Harry Stinson just reviewed me on Zillow for helping him obtain a home in Reunion off Grand Reunion Drive - http://t.co/rEanmkj 5 days ago
• Which Banks Are Pursuing the Most Short Sales?: http://t.co/6jHpoFw via @AddThis 6 days ago
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• I just unlocked the "Local" badge on @foursquare! http://4sq.com/l4nRXR 1 week ago

The real question, or the big question, that many ask is when is the Buyer obligated to get their financing started and when do they need to conduct due diligence (i.e. get a home inspection)? Most Buyers don't want to spend the money on a home inspection until the Seller's lender has approved the short sale 'contract.' This is not a big deal really. Special stipulations can be placed within the contract to allow the Buyer an inspection period after bank approval. The only issue here is that if there are any major issues with the property it would extend the transaction if the Buyer did want to go back and ask the 'Seller' (and really it is the bank at this point) to fix or repair anything.

I know, I know that short sales are "As-Is" purchases, but you can't fault a guy for asking for things to be fixed anyway now can you! If you do the home inspection on the front side during the lender contract approval process then certainly you have time to also include any potential major repairs to be done or paid for out of lender proceeds. Who knows, you don't get what you don't ask for in this life.

The binding agreement date however is not after lender approval, but at the time both Buyer and Seller agree to a contingent (lender approved) contract and sign a purchase and sales agreement. Logically think about it this way. If the binding agreement is agreed not to be until lender approval some 3-4 months out, it can raise the question regarding whether you ever had an enforceable purchase agreement.

One such special stipulation as provided by our friends at Weissman, Nowack, Curry, and Wilco, P.C. would be the following;

"Buyer and Seller agree that all time periods in the Agreement that are measured from the Binding Agreement Date such as the Due Diligence Period, shall instead be measured from the date when all lenders and other liens holders who must approve the sale of the Property on the terms set forth in this Agreement have done so in writing and the same has been delivered to the Buyer or the Broker representing Buyer in this transaction."

In this way you have both due diligence, financing, and other contingencies covered while not creating a fuzzy area that might open questions of contract validity.

Twitter Updates

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From the Prudential Georgia Featured Blog on Realtor.com. For the complete blog post please click here to go to http://prudentialgeorgia.featuredblog.com!

"Article From BuyAndSell.HouseLogic.com

By: Marcia Jedd
Published: May 18, 2011

You can buy a home at a significant discount at a foreclosure auction, but you’ll face a host of challenges. Don’t get burned; be solutions-ready.

If you want to get a good deal at a foreclosure auction, know what you’re buying and how you’ll be expected to pay for it.

Start by understanding the foreclosure auction (http://www.pueblo.gsa.gov/cfocus/cfbuyforeclosed08/focus.htm) rules for your area. State and local governments set their own rules for such factors as:

•Bidding process

•Amount of deposit

•Where the auction is held

•Whether the home owners can get their properties back after the sale

You can learn about the process in your area by talking to officials at your county tax department (http://www.naco.org/Counties/Pages/FindACounty.aspx) or to a REALTOR®.

Although foreclosure auctions follow local rules, there are some universal challenges you’ll face no matter where you shop for foreclosed properties. (http://buyandsell.houselogic.com/articles/5-tips-buying-foreclosure/) Here’s how to solve them.

Solutions to 6 common foreclosure auction challenges..."

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Summary:

Twitter Updates

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• Short Sale Guidelines Are Making a Difference: The theory behind short sales seems simple enough: If a homeowner... http://bit.ly/mvr78U 3 hours ago
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As the new owner, after closing, I drove my Mom directly over to the house so she could take it all in. 

I have to say......the place is even better than our initial visit................especially, without all that snow! (if you remember)

Anyway, thank you again for your service.  I enjoyed doing business with you.
We will be sure to recommend you to any of our friends & family who are in need of an excellent Realtor.

Take care,

Sharon Kelly

Regarding the Purchase by her Mom of a home in Rivers End in Buford, GA

All they will be able to compare is square footage and cost per square foot.  I don’t think with two sales, and one was in January of this year at $176,000 and one in April for $180,000 that "even if” you pulled another area sale outside the neighborhood as the Seller insists you could, that you wouldn’t pull an appraisal on this home up higher than $190k for a bank appraisal.  No way.  Amazing to see how the Listing Agent managed this client "so well."  If it were me, I would have explained how area sales in the neighborhood have to be used for the appraisal the bank does "if you get a buyer" who wants to negotiate a contract! 

I personally think that while a lot of agents are good and try and help their seller’s see the light of day to get a deal done, this listing agent has not done this at all.  They are trying to sell upgrades in a neighborhood where the order of the day for the past four years has been "foreclosures."  Makes no sense.

This is why most Buyers in our area are not buying non-distressed homes.  The banks price them low as they want to sell them while many Sellers are still mentally caught up in 2005 where upgrades sold for more and the bubble hadn't broken yet. 

            That’s why it is essential that you showcase your home through images in the best way possible.

            According to the National Association of REALTORS®, nearly 90% of all homebuyers begin shopping for homes online. Many flip through photos of the homes and send a list of those they want to see to their agent. In fact, homes with few or no photos are often passed over simply for that reason, even if the home’s description matches a buyer’s ideal listing.

            Many agents believe that apart from staging, no other marketing investment is as important as professional photography in marketing a property effectively. So, to generate more buyer interest, there has been a dramatic increase in the use of professional real estate photographers in the past few years.

            The best photographs are most likely to come from someone who has an eye for the underlying beauty of the home’s structure and spaces; has specialized equipment and techniques for lighting and perspective control; and uses workflow processes for post-processing of the images for use on the Web and in publications.

            Let’s face it, as much as we all like to think we take great photos, a professional has an eye for seeing the best vantage points and lighting options and also has better equipment to make the photos bright, clear and sharp. A professional photographer will most likely use a 10mm lens that can capture up to 85% of a room and lighting that can illuminate the entire room.

            The same holds true with taking video of your home to add to a website listing. An amateur can show what each room and yard looks like, but a video professional will make the strongest elements stand out and provide a much better video narrative of the home. Plus, you don’t have to worry about any shakiness or dullness that someone not that experienced with a video camera may give you.

            Before bringing in someone to photograph or video your home, it’s essential that it is clean and de-cluttered so the pictures entice a buyer to want to see the home in person. You don’t want clothes, pets or anything else distracting people from the photo at hand.

            Indeed, homes showcased with the best photographs and videos will attract more sellers and help speed the home-sale process to a successful conclusion.

            However, making-energy efficient home improvements doesn’t have to mean sweeping changes and, by creating a better carbon footprint for your house, you will attract green-conscious homebuyers.

            Recent studies have reported that 80% of homebuyers identify energy savings and comfortable surroundings as key factors when deciding between listings, so more agents today are working with home sellers on innovative energy, environmental and ecological approaches and opportunities for selling the home.

            One simple and easy change concerns the lighting in your house. Today’s green lighting isn’t limited to the fluorescent light bulbs to which most people have quickly adapted. There are plenty of other options including LED gaining in popularity as a viable and affordable home-lighting source.

            LED is an energy-efficient, semi-conducting light source that started growing in popularity in 2007. In the past, LED lighting appeared as unattractive blue hues but today’s LED lighting offers the same bright white output as incandescent lighting. Plus there is an affordable price tag to go with it and people understand the value of it.

            LED lighting can also be used in some areas of the home that will better showcase features when one looks around. From track lighting over the fireplace to under-counter cabinet lighting to can lighting in the hall, LED fixtures can cast dramatic light on your home’s best features.

            There are plenty of other benefits as well. LED lighting uses 75% less electricity than the standard incandescent light bulbs, and LED bulbs last 50 times longer than standard bulbs, saving you money.

            Energy-efficient lighting should also be used in exterior locals of the home, such as around any deck, pool, patio or garden. These low-energy emitting lights are perfect complements to any outdoor features you want to show off.

            Of course, once someone buys a home, they can just make the changes themselves, but a savvy real estate agent will tell you that a homebuyer will judge your eco-friendly actions in a positive light and may be more inclined to deal with you.

            Taking advantage of these modern lights will not only let you help the environment, but it may benefit your pocketbook as well.

The addition of any amount of usable real estate to a property increases value. Customized decks and personalized outdoor living areas are a hot trend in home improvement upgrades, and a great-looking deck may entice more people to come see your home.

Building or updating an existing deck isn’t simply a great investment; it also provides opportunities to personalize your backyard and customize the look to your taste. And with many families staying home this summer to save money, why not think about creating the perfect location for entertaining?

Deck experts agree that multi-level decks are the most popular now. These are a series of decks connected by stairways or walkways, which are aesthetically pleasing and can be used for different purposes. One level can be used to catch the sun, one level can be positioned for shade and another can be set close to the house for entertaining and barbequing.

Wood decks have always been the most popular, but caring for them is tough. They will rot over time, are subject to insect infestation and require a great deal of maintenance to keep the wood from fading. Accordingly, people are embracing composite materials for their decks, which cost significantly more but will last longer with less maintenance.

For those homes that already have a deck, it’s important to make sure that it’s still in good shape and adds to the attractiveness of a property. You can change your deck’s appearance with interesting balusters to match other decorative accents on your house or in your yard and really add unique touches to make the deck a personal haven. Meanwhile, railings offer a good opportunity to pull in color and ornamental detail that complements the house.

By designing your deck with accents, lights and unique accessories, you can transform your backyard into an outdoor retreat one will never want to leave. Whether you’re catching up with friends over a grilled dinner in the evening or are curled up with a book in a lounge chair on a sunny afternoon, a deck is the perfect place to be.

What we have run into with this type situation before is that both FHA and conventional financing start your timetable for being eligible for a new loan from the date that the bankruptcy was discharged AND when the creditor closed out the mortgage on your credit, which often times can take a year or more to do.  That is not fair and absurd that a lender would do that, but they do.  This means that while the bankruptcy is charged, as is the debt on the home, like this couple, you may be stuck not being able to buy or obtain a new mortgage for another six months to a year or longer “after” the discharge has aged for three years!  Now here is the "fun" part.  I have seen deals die on the vine weeks and days before a closing "after" a pre-approval letter was formally issued once a loan file was in front of an underwriter.  To Buyers; please understand and please read those pre-approval letters for yourself.  They typically have additional verbiage of something to the affect;  

“This is based on the information provided including income and assets, and an in-file credit report. This file has been through automated underwriting and received full approval based on the information provided. Final approval is subject to verification of the information, and an acceptable appraisal and title.”

What if the information provided is incomplete or wrong?  I have had loan officers call me recently and say that W2 income as reported on the online pre-approval system didn’t match up with what tax returns showed.  Is this mortgage fraud? No. It was an honest mistake created out of borrower misunderstanding on how the system worked as to what information was being asked for on the online pre-approval site.

Can a pre-approval system online at an originator’s website give the originator much less an underwriter all pertinent details to meet every situation and loan guideline?  Simply put, no.  The best advice I can give is that if you are self-employed or have any extenuating circumstances going back for 36 months to pick up the phone and call the originator asking hard questions to make sure that the pre-approval letter when issued can stand.  When I say 36 months back, I mean 36 months to the “day.”  As we see in my situation above, this couple is 36 months from a bankruptcy discharge “next month” and yet the mortgage doesn’t appear to have been closed off their credit for 15 months afterwards.

If your situation contains a bankruptcy please understand that I am not trying to be a “Mr. Bummer Guy,” but trying to help you do the research before you get ready to buy.  Believe me that it hurts to be me sometimes, as I would much rather make that offer for that Buyer, but at the end of the day if we don’t go deeper to verify that nothing is going to come up in the underwriting process then we all may be wasting our time.  This is from the credit report below.  Note, full bankruptcy discharge was a full 15 months “before” the loan was closed and property sold.

“Lender- “XYZ”  HOME MTG

FORECLOSURE PROCEEDINGS STARTED;

CHAPTER 7 BANKRUPTCY; Discharged 4/08

SEARCH-FORECLOSURE 05/06/09 PROPERTY

RESOLD AND LOAN CLOSED 07/01/09”

“Lender – “XYZ” TRUST

CHAPTER 7 BANKRUPTCY; DISPUTE RESOLUTION PENDING;

INCLUDED IN BANKRUPTCY PER ONLINE SEARCHFORECLOSURE

05/06/09 PROPERTY RESOLD AND LOAN CLOSED

07/01/09”

http://www.hankbailey.prudentialgeorgia.com
 

1. Ohio, 43 percent discount

2. Kentucky, 40 percent discount

3. Tennessee, 35 percent discount

4. California, 35 percent discount

5. Pennsylvania, 35 percent discount

6. Illinois, 35 percent discount

7. New Jersey, 35 percent discount

8. Michigan, 35 percent discount

9. Georgia, 35 percent discount

10. Wisconsin, 35 percent discount

Find Them and "See Them ALL"

	Google Maps Search of All Atlanta, Georgia Foreclosures
	"Search them All!" Every REO Bank Owned Foreclosure in North Metro Atlanta, Georgia for sale in Georgia MLS and FMLS!

	Google Maps Search of All Gwinnett County, Georgia Foreclosures
	"Search them All!" Every REO Bank Owned Foreclosure in Gwinnett County, Georgia for sale in Georgia MLS and FMLS!

	Google Maps Search of All Athens-Clarke and Oconee County, Georgia Foreclosures
	"Search them All!" Every REO Bank Owned Foreclosure in Athens-Clarke and Oconee County, Georgia for sale in Georgia MLS and FMLS!

	Google Maps Search of All Winder-Barrow County, Georgia Foreclosures
	"Search them All!" Every REO Bank Owned Foreclosure in Winder-Barrow County, Georgia for sale in Georgia MLS and FMLS!

	Google Maps Search of All Hall County, Georgia Foreclosures
	"Search them All!" Every REO Bank Owned Foreclosure in Hall County, Georgia for sale in Georgia MLS and FMLS!

	Google Maps Search of All Jackson County, Georgia Foreclosures
	"Search them All!" Every REO Bank Owned Foreclosure in Jackson County, Georgia for sale in Georgia MLS and FMLS!

	Google Maps Search of All Walton County, Georgia Foreclosures
	"Search them All!" Every REO Bank Owned Foreclosure in Walton County, Georgia for sale in Georgia MLS and FMLS!

Regarding Active Listings, Sold, and Under Contract over the past six (6) months along with a price survey;

	The Chateau Elan Real Estate Report

Chateau Elan Homes and Real Estate; Braselton, GA

SB346 was passed last year with fanfare.  Many have quoted and re-quoted the details that discuss how this bill have allowed Georgia’s property owners to triumph as the Georgia House and Senate passed this key piece of legislation. The Property Tax Assessment and Appeals reform bill is aimed at protecting all Georgia property owner’s by making sure that all properties are assessed at Fair Market Value and that property owners have guaranteed rights to appeal.

“The overwhelming bi-partisan support in favor of property owners’ rights to fair and transparent assessments clearly demonstrates the need for property tax reform.  While this is a huge victory for Georgia property owners, it’s only part of the solution to providing a system that actually works.  With the passage of SB 346, we will protect taxpayers from unfair assessments and guarantee the right to appeal,” said Rogers.
The overall reform includes more than 50 changes to current state law. Significant taxpayer friendly provisions include:

Requirement that every property owner receive annual Notice of Assessment, which guarantees right to appeal

• Every Notice of Assessment must contain estimated property tax
• Expansion of appeal time-period from 30 to 45 days
• Alternative streamlined appeal option for property valued in excess of $1,000,000
• Automatic taxpayer victory on appeals when government fails to respond within 45 days
• Requirement that all relevant sales, including distress sales, be included when determining Fair Market Value
• Requirement that only “current use of property” be used in determining Fair Market Value
• Taxpayer must be given access to all data used in determining Fair Market Value
• Sales price establishes Fair Market Value for next tax year

As a Buyer’s Agent who works with Foreclosure Buyers, the piece of the legislation I like the most is the last sentence which says in detail;

“PART V, Section 5-2 (fair market value and the income approach)

• Defines “fair market value”

• Requires assessor to consider income approach, if data available, in determining FMV of income

producing property

• Transaction (sale) price of the most recent arm’s length/bona fide sale shall be the maximum

allowable FMV for the next taxable year.”

This means if you bought a foreclosure in 2010 on into the future and you are looking at a big tax assessment and worried about how whether those taxes are ever going to get adjusted downward, now you have the answer to your question.  The answer per SB346 is yes they are!

Read more at http://www.gaptp.com/docs/SB346.pdf.

http://www.hankbailey.prudentialgeorgia.com

"Hank has been very giving of his time and expertise. He really helped me in what I would consider the most unusual home purchase effort that I have experienced. I have been in in big ticket item sales for over 33 years and can honestly say that Hank is one of the best and most professional salespeople that I have ever met. He is completely trustworthy and I believe he really does have his client's best interests at heart!"

Mr. Ed Curry

http://www.hankbailey.prudentialgeorgia.com

From the Prudential Georgia Featured Blog on Realtor.com.  For the complete blog post please click here to go to http://prudentialgeorgia.featuredblog.com!

Well you are asking about now, “Well why are you so full of sunshine Hank?”  I will tell you.  Freddie Mac, http://www.freddiemac.com/pmms/pmms30.htm, shows the average 30 year mortgage rate at the peak of the market, as defined by Zillow, in June of 2006 at 6.68 percent.  This means that the same average to median priced home at $175,000 some four and one half years ago would have cost (including escrows) that home buyer (assuming 5% down) $1,332.20 per month and $479,592 in payments over 30 years.  Today at a 5 percent 30 year mortgage, would mean a payment of $1,154.09 per month and total payments over 30 years of $415,472!

The devil is always in the details 

The article notes FHA commissioner David Stevens who says he understands the lender’s allowing this because they are trying to help people who had a tough time through the recession, maybe temporary loss of income.  From what I see most people who are in those boats are not going to fit these requirements.  See the BOLD for “highlights”.

“Home buyers with scores of 580-599 will need 5 percent down payments, and will be prohibited from supplementing their own cash with gifts. Borrowers with FICOs above 600 will qualify for 3.5 percent down payment FHA deals, but will be allowed to use gift money.

Contributions from home sellers to defray..................

"I appreciate Mr. Hank Bailey's role as a Buyer's Agent for helping me purchase an ideal house in the Five Points neighborhood of Athens GA. His resources, inventory of homes in Five Points, his efficiency, patience, hospitality and suggestions are valuable for buyers in allowing them to make the best home buying decisions. I suggest that home buyers consider Mr. Bailey as the first agent in Athens as well as the Metro Atlanta region."

Dr. Zining Wang

University of Georgia

http://www.hankbailey.prudentialgeorgia.com

Metro Atlanta came in at 19th in the list of Top Cities where it is deemed much less expensive to Buy than to Rent.

How does your city or town stand up to the test?  Pretty simple.  The methodology by Trulia in computing their Price-to-Rent Ratio is as follows; .......

What is a HUD home?

HUD homes are homes that had FHA loans at one point, but were foreclosed. Once the homes are foreclosed, they go back to HUD for resale.
 
We get new HUD listings daily. As soon as the properties go on the market, bids are limited to owner-occupants only (those who will buy the house to live in) or non-profit agencies. Day 1-15 bids are sealed & accumulated, and then on day 16 bids are reviewed. If no acceptable bid is accepted then from day 16-30 is daily bidding. After thirty days if no bids are accepted, the bidding is opened to everyone, including investors. You must use a HUD-Certified Agent to place your bid. Who Can Buy A HUD Home?

Anyone who can qualify for a mortgage or who can pay cash may buy a HUD home. Owner occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home as an Owner Occupant for two years. Buyers must use a broker or agent who is registered with HUD to place a bid on a property.

How Can I Place An Offer On A HUD Home?

HUD requires that you start by finding a participating real estate agent. Your real estate agent must submit your bid for you. Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers are opened and considered to be received simultaneously, and, basically, the highest acceptable net bid is accepted.

Where Can I Learn About Available HUD Properties?

Reasons You Should Consider A HUD Home

HUD will pay up to 3% in closing cost

All homes have a “Clear Marketable Title”.

Officer/Teacher Next Door Program .

Firefighter-Emergency Medical Technician Next Door Program

$100 Down Payment!!

HUD (the US Department of Housing and Urban Development) is offering a Homeownership incentive which allows qualified buyers (owner occupants only) to buy HUD homes with a down payment of only $100!

HUD will pay up to 3% of your closing costs.

Qualifications

Qualifying is easy! To buy your home with $100 Down payment, you must:

   • Qualify and obtain a new FHA loan for the purchase. 
   • Stay in the property for at least one year (investors do not qualify for this incentive), and cannot participate in HUD sales for 2 years after purchase.

How Do I Start?

For complete blog post including step by step what to do to get started please click the link to be directed to http://prudentialgeorgia.featuredblog.com!

Today I received an email from a customer who I had shown some property to yesterday.

He said, “Hank…thank you for your time yesterday…it was very enlightening from the Huffington Post. If you have a chance read article “8 states running out of homebuyers”…(Georgia is 6th…not good)..24/7Wallstreet…ouch.”

Read the article.  This actually would be funny if it were not such a pathetic excuse for journalism.  Talk about “spin.”  It was also the most illogical argument and set of “half facts” that didn’t mean anything related to the premise of the story that I have ever seen.

The title is “8 states running out of home buyers.”  What they said about Georgia was;

“The number of building permits issued in 2006 in Georgia was 92,541.  In 2010 that number dropped to 16,391.  This is the second greatest decrease in the nation during that time. The state’s unemployment rate, at 10%, is above the national average of 9.4%.  Also, in 2010, there were 130,966 foreclosures in Georgia, 3.25% of the state’s properties.  This is an increase of 53.62% since 2008.”

Where do I start?  I have a fancy Latin term that describes what I think of this argument and story.  It is the word “Baloney.”

Building permits in and of itself means nothing related to “running out of home buyers.”  This means that we are not building new homes.  There is no reason to build new homes because of all the foreclosed properties “and” heavy non-distressed inventory in the market for sale.  You can buy for less per foot than build so of course building permits are down.  Makes no logical sense for the author to connect there being a “lack of home buyers” with housing starts being down.

The unemployment rate is 10% but it is about 9.4% nationally as they put it.  Roughly a half a point difference between the state of Georgia and the national unemployment picture has nothing to do with and cannot be directly connected here with there being “more” a case of a “lack of homebuyers” in Georgia over the any other state than anything else they say so far.

The foreclosure rate is high.  Sure it is.  We are a non-judicial foreclosure state so it is easy for lenders to foreclose.  Therefore the rate is going to be in the top 10 nationally, but if you are a buyer and buy in the right neighborhood, street, home then you can make a lot of money and buy safe!  If the S&P or Case Schiller as they mentioned is right and prices are off 7-10% this year overall, then wouldn’t it be nice to buy a good REO or bank owned home that is 20-30% below market!  Most, including RealtyTrac, feel that foreclosures are going to peak this year before going down.  Buy low, sell high down the road.

According to Georgia MLS last year, the biggest MLS in the southeast, if we take a 50 mile radius around Atlanta, GA there were 55,891 sales in 2010 of residential homes in Georgia.  Of these, 19,198 or 34 percent were foreclosure or bank sales.  Ironically, this is about the exact same percentage of foreclosure inventory nationally that was sold each month in 2010.  This means that Georgia’s percentage of REO sales was NO HIGHER than the national average.  Not worse. Again, the article used a higher than average foreclosure rate as to mean this meant we had a bigger problem here over other states and this meant somehow we had fewer buyers.

In 2009 there were 22,778 REOs or foreclosure sales out of housing inventory.  There were 60,293 overall sales per Georgia MLS of single family detached residential homes. This means in 2009 there were 38 percent of homes sold in Georgia were REOs or foreclosures out of housing inventory.  Let’s back some numbers out of this and analyze them.  Foreclosure sales went down last year by 15.7 percent.  In 2009 there were 37,515 non-distressed home sales in Georgia.  In 2010 there were 36,693.  I am seeing a small or marginal decrease.  On the whole we saw about a 7 percent decrease in homes sales.

Once again, per the wisdom of the Huffington Post or 24/7Wallstreet, we are to believe that Georgia has few if any buyers and is drying up as a state.  Again, I am not seeing any logic in their argument.  They offer no facts that would back up the premise of their story.  Let me go one more year back.

In 2008 we had 41,691 overall sales.  If anything, there are more buyers in the market today than three years ago! In 2008 there were 18,774 foreclosure sales out of this sale inventory for a staggering 45 percent of inventory!

In Georgia I see a market getting healthier each year, and one not hindered by the fact that we don’t have more “housing starts.”

The final piece of my argument is the 2010 U.S. Census.  If Georgia were running out of home buyers, it would stand to reason that Georgia is also showing stagnant to a decrease in population.  In fact, the 2010 census showed an 18.3 percent increase in population for the State of Georgia, a.ka. more home buyers not less.  This figure is the 6th highest growth rate of any state in the nation over the past decade.

Once again, when you look at facts, note that at the bottom of the "8 States Article" they reference using the U.S. Census, is the article "8 States Running out of Home Buyers" bad journalism or intellectual dishonesty?

http://www.hankbailey@prudentialgeorgia.com

We will be holding these Free Foreclosure Seminars the first Saturday of each month from 1:00-2:00 p.m.  Specific REO locations where the Seminar will be held will be emailed to registered attendees the Wednesday before each Seminar.  Schedule is as follows for 2011;

February 5, 2011  Held in Jackson County, GA

March 5, 2011 Held in Hall County, GA

April 2, 2011 Held in Gwinnett County, GA

More dates announced in the future so keep checking back!

This Seminar will Feature the Following Information to be Discussed at each Venue;

• How to Evaluate REO's
• Does "As-Is" mean the Bank is not going to Fix Concerns from the Home Inspection?
• How Low Can I make my Offer?
• What Does Highest and Best Offer Mean on a Multiple Offer situation?
• Who is representing me in the Purchase?

Hank Bailey, Associate Broker and REOS, has extensive experience in working with Buyers of Bank Owned homes.  Hank brings this experience to a real life walk-through each month of an REO to help you see with his trained eye issues with REOs that need to be addressed to protect your best interests!

• How do I know my title is clear?
• What happens if I have problems i.e. repair issues with the house after closing? 
• What happens if there are liens against the previous owner; do they carry over to my title? 

http://www.hankbailey.prudentialgeorgia.com/free-foreclosure-seminars-ga.aspx

Article From HouseLogic.com

Published: November 29, 2010

Take a look at the most common things that can go wrong when you have guests and learn how to prevent them.

Imagine you're preparing to host your annual holiday party, and you're past the point of no return. The veggies and meats have been bought. Guests are already braving busy airports and crowded highways to get to your home-and then your oven won't turn on. Your home-cooked meal has quickly turned into a microwave dinner.

That's just one of many hosting nightmares that can end your holiday party before it even begins. Thankfully, some of the most damaging mishaps easily can be avoided. We collected five of the most prevalent issues and give you preventative tips to keep your holiday party on track.

Problem: The oven doesn't heat

For any holiday occasion, the oven is the most important appliance in your house. If it fails to work, the centerpiece of your meal could go from roasted beef, ham, duck, or Tofurky to Peking Duck from the local Chinese takeout joint.

How to avoid:

          •There are any number of reasons a stove can break, but one common cause of disaster is easy to prevent. Don't self-clean your oven until AFTER the holidays. You risk blowing a fuse or a thermostat, and tracking down an oven technician around the holidays can be tough.

Problem: The kitchen sink clogs

The day after Thanksgiving is the busiest of the year for plumbers. The prime cause of this clog-a-thon is the mistreatment of drains when cooking holiday feasts. We hope your Thanksgiving went well, and that you avoid clog-a-thons for the rest of the holidays.

How to avoid:

          •Fats and cooking oils can solidify in your pipes, so never dispose of them in your kitchen sink.

          •If you have a garbage disposal, make sure it's running before anything goes in it, and never feed it any stringy, fibrous, or starchy foods like poultry skins or potato peels.

          •To fix, don't rely on chemical drain-clearing products that can harm your pipes. Use a snake instead, available for $15 at your local hardware store. Best to keep one on hand.

Problem: The heat goes out

As the party's host, you're supposed to hang guests' coats-not apologize to them for having to keep them on. A lack of heat can stop a holiday party dead in its tracks.

How to avoid:

          •The key to avoiding freezing your party to a standstill is regular maintenance of your HVAC. Every 90 days, a new one-inch pleated furnace filter should be installed. If you haven't done it in a while, now's a good time to replace it.

          •Also inspect insulation on refrigerant lines that are leading into your house. Replace them if they're missing or damaged.

Problem: The toilet stops up

Toilets have a way of clogging up at the worst times, such as during parties and when you have overnight guests. This is especially true if you have a low-flow toilet from the early 1990s.

How to avoid:

          •Don't flush anything other than sewage and toilet paper down the toilet. And there's nothing wrong with putting up a polite note to remind your guests to do the same.

Problem: The fridge doesn't cool

Without a properly functioning refrigerator, your meat could get contaminated, your dairy-based treats could go sour, and you may not be able to save your yummy leftovers. To avoid discovering a warm fridge after it's too late, take these simple precautions.

How to avoid:

          •Get a thermometer for your refrigerator to make sure each shelf stays below 40 degrees and you can be aware of any temperature changes.

          •Also make sure the condenser coils located on the back of the unit or beneath it are free to breathe. Coils blocked from circulating air by cereal boxes atop the fridge, or dirtied by dust or pet hair can prevent a fridge from keeping cool.

Lately I have had my “advisor’s” hat on as I have been working with clients around the area.  My biggest niche is working with foreclosure buyers, those people looking for “steals and deals” in our market (Gwinnett, Jackson, Hall, Barrow, Oconee, to Athens).  The thing I keep stressing is that knowing list price by itself is leaving you short when evaluating how good a deal a bank REO is in our marketplace.  You must know market value.  Either through conducting your own appraisal of a property “pre-offer,” looking up the value of the property via tax assessment (marginal value), having a Realtor produce a CMA (current market analysis) for you, or some other home price index.

What we see on these nine random sales is an average sales price to list price of about 86 percent or said another way, there was a 14 percent discount from sales price to list price.  Now when you look at RealtyTrac or the media at large they tout “foreclosure discounts of more than 32 percent in October!”  What they are referring to is comparing foreclosure sales to market value.  RealtyTrac for example takes the average sales for a given city, county, or state and divides this average sales price per home sale with the average sales price of foreclosure sales in that area.  Dividing average foreclosure sales into average overall homes sales they come up with their “average foreclosure discount percentage.”

This has nothing to do with list price

If I take the sales I listed above and compute the SP (sales price) to MV (market value) we have an average discount of 78.9 percent.  So my clients have seen an average discount of roughly 31-32 percent across the board.  Another example, I am working on a home purchase with a Buyer client in Traditions of Braselton right now.  I cannot give its’ location because it is Under Contract, but this home has a HPI value of $397,000 and my clients have it Under Contract for 19.5 percent below list price and 34 percent below market value!

Deals are out there.  You just have to research them, be patient, and negotiate (or have a Buyer’s agent who is experienced at negotiating with banks) to get your best deal!

http://www.hankbailey.prudentialgeorgia.com

These are the latest numbers on the return you may receive on any remodeling ideas you might be toying with....or have completed!

Visit http://www.costvsvalue.com/ to see the average cost for 35 popular remodeling projects and the value those projects retain at resale. You can drill down by market, by state and even download local data on one of 80 U.S. cities featured in the report.

Key findings? Curb appeal improvements continue to play a strong role in a home’s resale value. They are among the least expensive projects in the survey, and they improve curb appeal in a way that can affect a potential buyer’s first impression and, consequently, a home’s resale value.

City data for 35 projects, including:

• City Job Costs
• City Resale Value
• City Cost Recouped
• City/Region Comparison
• City/National Comparison

Cost versus Value report for Atlanta is located here.

The biggest return on your money in Atlanta?  An Entry Door replacement.

The biggest "upscale" update for a return on your money?  Replacing the siding.

For more information you can download Atlanta, GA renovation vs value data here.

http://www.hankbailey.prudentialgeorgia.com

Depending on days on the market, you might find a property that has had three price reductions off appraised value that was set within 3-6 months ago and might be already at a given value to market.  You might also find a new(er) REO listing that was priced 20-25 percent higher as a short sale listing and now after the bank took it, then as an REO the bank lowered the price to something already well below market.  Knowing listing history of a property can help you make a well informed offer and purchase.

We will pick on one property that I have under contract for a client of mine at this moment.  The property is at Traditions of Braselton in Jefferson, Georgia.

You can see how this property has been listed off and on since 2007 with a high of $599,900!  The last listing expired at a list price of $375,000 as an attempt to short sale the property.  Now it is listed  at $324,900.  The moral of my story is that the bank is not going to take 50 percent of this new list price.  Especially when the home across the street with the same square footage just sold for $410,000 three months ago!

Now with that said, and I cannot disclose the Under Contract amount, but my client and I negotiated a price that was still more than 20 percent lower than list price.  In the end, you have to look at listing history and what the property is valued at or worth in today's market.  A discount of more than 20 percent of list price is irrelevant.  The relevant figure is that it was already priced 15-20 percent below current market value.  Now we are talking a discount to market of more than 40 percent!

If you get list price "in your head" as having to beat it by more than 40-50 percent to feel you got a deal on an REO, then you might be missing the REO boat! There are a lot of other factors involved that spell out value in an REO purchase beyond just looking at list price.

http://www.hankbailey.prudentialgeorgia.com