Metro Atlanta North Real Estate

There are dozens and dozens of real estate searches out there, which one should you use?  There are two major answers to that: the one you are most comfortable with, and the one that is best integrated with your realtor.  It all depends on how you want to work with your realtor. 

You could use a general purpose consumer Real Estate search site such as Zillow, Trulia, or Realtor.com (or a half-dozen other common ones).  They are nice, and they are also pretty friendly.  But it means that you have to do all the work.  Once you’ve found properties in which you are interested, you need to write down the MLS number or address to tell your agent.

Most agents also have a search available on their web site, and my site does too.  But an agent’s web site search tends to have less functionality or be harder to use than the major public sites.  Mine is in-between, almost as friendly as Zillow but with many more detailed search options.  Like the public sites, you can save searches on my site, and tag properties you like as “Favorites”.  Unlike the public sites, when a new property comes on the market that meets your criteria, you will get an email. 

What makes my site better than the public sites is that it tells me what you like.  You don’t have to remember or write down the property information.  When you find a property you like, mark it as a favorite.  Then when you’re ready, you send me an email to set up a showing time.  I will go in, look at your favorites, and start making the appointments.  Simple.

If you are getting too many properties you don’t like showing up in your search results, I have an even better search engine at my disposal – but it is open only to agents.  In this search engine, I enter the criteria for the type of property you are seeking to a much finer level of detail, and set it up to mail you every day with properties.  Like my web site search, you can mark favorites, and I will see them.  The good side: You only see those properties that are just right for you.  The bad side: I have to set it up for you or change it for you.

My site also allows you to search for foreclosures for free, something most sites charge for.  I also provide a search of commercial properties that most agents cannot show.  Finally, there is another search that most agents do not even know about – HUD Foreclosures.  These can only be searched on the government site for it, no agent can provide a search of them.  But give me a call or an email, and I will send you a document with detailed instructions on how to get there, how to use it, and how I can help you with the houses you find.

There are tons of good Real Estate search sites out there.   There are also a few bad ones.  The ones to stay away from are those that offer to show foreclosures for a fee, or those that say they can tell you about foreclosures before they happen.  These are both … well I would not say “scams,” but less-than reputable.  If you would like to know why, give me a call and I’ll discuss it at length.  But for now, don’t waste your time and energy on this type of site.  Find the site that will allow you to work with me in the way that is most comfortable for you.  They almost all show the same properties.  If you’re not sure which, just stick with the one on my website until you become more comfortable.  Then, once you know how they work, you can start comparing these other sites and see if you like one of them better.

Here’s the key to a good search.  It should find between 50 and 100 houses that match your criteria, and it should let you know when new ones come on the market.  It should be finding between 5 and 15 new ones each week.  If you are getting more than that, you may have set your criteria too wide and it will take you too long looking through houses that will not work for you.  If you get less, you will be frustrated because weeks may go by without seeing a good house for you. 

Now I’ve gone on and on about searches, probably telling you more than you want to know.  There’s a lot more to tell you, but I think it would be better to wait for you to ask me questions when you are ready.  So go search, and even better, go find.

The First-Time Homebuyer tax credit was about to expire at the end of the month.  Our government leaders have decided to extend it to the end of April 2010 – and to extend it to existing homebuyers as well.  As long as the contract becomes binding before April 2010, you have until May 31 to close.

For First-Time Homebuyers, the only thing that changes is the deadline – it moves from November 30 to May 31.  The credit is still $8,000.  It is still capped to homebuyers making $225,000 or less.  They added a purchase price cap so that it would not apply to houses with a purchase price of over $800,000. Some new anti-fraud measures were also adopted. 

New credits are extended to existing homebuyers – $6,500 to those purchasing a home if they sell their previous home and lived in it for at least 5 of the last 8 years.  Active Duty Military get another year, until April 2011.

The National Association of Realtors (NAR) has put together a handy table showing the key changes in the tax credit law, and a Frequently Asked Questions document.  Feel free to peruse and share.  Let me know if this helps you decide to go out house-hunting this weekend!

If you have been “on the fence” about buying a house, consider this:  If you buy a house now, you get:

• An $8,000 first time buyer Federal tax credit
• An $1,800 first time buyer Georgia tax credit
• Up to $1,800 per month for 6 months (10,800) Job Loss Protection to pay your mortgage if you lose your job
• Instant equity in today’s low-priced buyers market

Right now, with the quantity of Foreclosures and Short Sales on the market, prices are about as good as we are likely to see for several years.  And these tax benefits will not last several years.  In fact, they won’t last several months.  In order to qualify, you must close by the end of November to qualify.  Closing can take from 3 weeks to 3 months depending on the property, so you should get moving quickly if you are thinking about buying a house this year.  Please call us and we can help you get started!

Prudential is Here to HELP

Prudential Georgia Real Estate is now offering a revolutionary program called Homeowner Education and Loan Protection (HELP) designed to offset fear of buying in this economy and market.  Many people who might consider buying a house right now are putting off that decision becasue of uncertainty about the economy and their job.  Car companies have been offering Payment Protection programs for this very reason, now Prudential is taking that idea to the Real Estate market.

With unemployment hovering around 10%, this is offsetting the effect of the Federal $8000 tax credit, Georgia’s $1800 tax credit, and the indredible buyer’s market we are experiencing.  Even with these incredible numbers, people are hesitating because they are understandably worried about the safety of their job.  This program will help alleviate the hesitation.

The HELP program is administered by the Rainy Day Foundation and available now from certified Prudential Realtors.  It combines the Payment Protection program with an Education program to help the buyer during the first two years, with the goal of helping the buyer stay in the home.  The program costs $500 and is funded by the Seller at closing.

With this program, if the buyer loses his job within 24 months of purchasing the house, the program will pay up to $1,800 per month for up to six months.  Buyers may negotiate it into the purchase contract, or sellers may offer it in order to make their properties stand out and be more attractive to buyers.

Click on http://vidego.multicastmedia.com/player.php?p=44059 to view a video explaining the program.

Now is the moment to really understand what is most important in our lives…

In speaking with various people I’ve found it interesting that for us human beings these moments are going to be a new history in many areas.  One of them is changing our idea about pride and what success means.  Having to decide between trying to do a Short Sale or lose your house in a foreclosure, many people opt to ignore their situation until it is too late.  In their eyes, it is shameful, and their sense of loss of confidence is very high for many of them – ending in depression.

I am not a psychologist, but I can share with you that I am a human being, one that life has taught from a very young age that having pride about the wrong things can lead me to disaster.  Over the years, I have understood that the life these things have taught me were not something to be ashamed of.  They were to raise me up, learn a lesson, and keep going forward being stronger and smarter.  What tough lessons they were….

Two weeks ago, I had an appointment with a young gentleman who wanted to understand his options about Short Sales.

When I met with him in my office, he apologized for not speaking well…  At first, I did not understand, it seemed to me that he spoke perfectly (he does not have a thick accent like mine… ? ).  After a few minutes more, I understood – that because of the level of stress that he was living with the economic problems and with the thought of losing his house, half his face was paralyzed.

We spoke for several hours, and after a couple of days he called me.  He said that he was ready to begin the Short Sale process.  When we met again, several days later, he was another person.  His face was much better, and he was very optimistic about the future.

For me, it is an honor when a person allows me to walk with them during these difficult times, and show them that there is hope and a new beginning at the end of the Short Sale process.  I have no doubt that I will meet all my clients again in a couple of years, and they will be strong again – in their mind, their spirit, and their family.

Once again, I come back to the fact that while these transactions are harder and sometimes less financially rewarding, the personal reward that I get out of helping people more than makes up for it.  Share your stories with us about helping people, or about people who could use this kind of help.

Last week I closed on a property located in Loganville, GA, representing the buyer.  The property was brand new construction; the bank had foreclosed on over one-third of the subdivision.

Even though it was a foreclosure, the bank agreed to pay for:
$5,000 in closing costs
$   480 for a home warranty
$   330 for HOA transfer and assessment fees
$   300 to install two new windows that had been broken
$   400 for a termite bond

As we were closing, the attorney saw those numbers on the HUD and told my client that he might have had a good advocate in the process, and my client agreed with him.  When the closing had ended, the attorney turned to my client and told him that he had closed that morning on a house in the same subdivision, with the same floorplan, for a price $35,000 higher than we were paying.

In these times where everyone is counting the pennies, you need to look not just for an agent who will represent you, but for an advisor who will advocate in your favor during the whole process.  One who will help you to purchase your dream home while looking out for your best interests.

I would like to earn your business by providing you with that same level of service, and have a client for life.  What do you buyers think of this kind of service?  Leave us a comment here and tell us what kind of service you are looking for.

The Congress and the President are considering legislation to phase out the deductibility of mortgage interest for people who make over $250,000.  This appears to be the first installment of the President’s pledge to raise taxes on those making over that amount.  The plan is still in the development stage, so it is unclear how much and how quickly the deduction will shrink for those people. 

At first glance, that does not affect everyone making less than 250,000, but that does not consider collateral consequences.  When people making more money are given less of a deduction, they will sell their higher priced homes and reduce their mortgage by buying a cheaper house.  This has the potential to further stress our already challenged market and reduce the prices of homes across the board – just as the foreclosure crisis has done.

Let me know what you think of this idea, post a comment here.  But more importantly, contact your Senators and Representatives and let them know how you feel – whether you are for or against this idea, it is important that they know your opinion.

Here are 5 things you should consider before applying for a loan.

1. Expect a larger downpayment – at least 10 percent for a “conforming loan” (a mortgage that Fannie Mae and Freddie Mac will purchase).

2. Credit scores matter.  FICO has a scale going up to 850.  Above 740, you get the best rate.  For every 20 points below that mark, a premium is added to your rate: 1/8th, 3/8ths, and 1/2 of a percent at each respective level.

3. Consider VA and FHA. If your credit score is not perfect, or you are short of a full downpayment, consider government-insured loans offered through the Federal Housing Administration or the Veterans Administration.

4. Gather the Paperwork. Before applying, put together all the records for taxes, banking and other proof of income, savings and debts. Be patient with the endless requests for information.

5. Pay down debt. It is important to limit your debts, including the prospective mortgage, to under 43 percent of gross income.

Now is a great time to buy a house, especially with the $8000 first time buyer tax credit.  If you are preparing to buy, start considering these 5 steps and give me a call. 

On March 4th, President Obama laid out some of the details of his Homeowner Affordability and Stability Plan.  It is mostly aimed at people who already bought their homes.  It has two large components: one to help those who cannot pay their mortgages and are already behind, the other to help those “under water” who have a home worth less than their mortgage.  A smaller part of the plan is to extend and change the first-time home buyer credit.  As with most bailout policies of the last year, this one has its share of proponents and antagonists.  Without discussing the appropriateness of the approach, I would like to take a moment to point out the benefits for you, depending on what group you belong to.

For those behind on their mortgages and unable to get current, the idea is that you talk with your lender to see if you can qualify for the government plan.  The lender gets some money from the government as an incentive to help you modify your terms.  You would negotiate a payment you can afford, and the lender gets money from the goverment corresponding to how faithfully you pay the new mortgage – how much is unclear.  Obviously, if your new negotiated payment plus the government subsidy add up pretty close to your current payment, the lender is more likely to accept as it prevents a default.  But if the two do not add up to a reasonable portion of your mortgage, the lender has no reason to want to accept it. 

For those current but underwater, the idea is to refinance the loan under Fannie Mae or Freddie Mac (only if they already hold your mortgage) into a 15 or 30 year fixed rate loan.  To qualify, you must have a home worth less than the mortgage, but not by more than 5%.  If you have a $200,000 mortgage, for example, the house must appraise for between 200,000 and 210,000.  Anything more or less does not qualify. It is aimed at those in that underwater position who have a current interest rate significantly higher than the market rate.  If you are not in that position, the plan is not likely to help you even if you qualify.

If you have never owned a home before, the government has changed the first-time home buyer tax credit.  The one passed last year was for up to $7500, but it was treated as a loan that had to be paid back over 15 years through your taxes (500 per year).  This one has no repayment clause, and was increased to $8,000.  So, in essence, the government is giving you $8000 to add to your downpayment.  It is a fantastic deal, open only to first time home buyers.

For more information on the Plan, go to http://www.whitehouse.gov/blog/09/02/18/help-for-homeowners/.

Let me know if you think this plan will help you, and what you think about the whole idea, by leaving a comment here.

The numbers we are hearing in the media are astounding and incomprehensible.  A billion for this, ten billion for that, how do they decide who gets how much?  What does it mean to us?  To our children?

Let’s take a moment and put it in “Kitchen Table” terms – illustrate it with a family budget.  Let’s say your family takes home 26,600 per year (one ten-millionth of the federal income).  But you have been living beyond your means, borrowing money from your credit cards to make up the difference.  You owe the credit card companies $106,000 – four years worth of your take home pay.  You are still spending 2,400 a year more than you make.  And those were the numbers 4 months ago.  In the mean time, you borrowed another 8,400 to help an ailing friend (the banking industry).  Now, a lender comes to you with a very strange proposition.

What this banker wants you to do is borrow another 8,100.  But he has some restrictions.  You are not to use the money to pay any other debt, or to buy anything that would increase your net worth (say an investment property or a car). You have to give it away, or use part of it to reduce your income.  As a matter of fact, the suggestion is that you reduce your income by 2,000 (the tax cuts that make up 25% of the package).  The other 6,000 you have to give away, not pay bills.  And you have 2 weeks to figure out where you are going to put that money.

So now, you and your family sit around the table figuring out how to spend that 6,000.  You decide to give 5% to the united way, 10% to your church, etc. etc. etc.  That is exactly how our lawmakers are deciding how to spend the money in the stimulus bill.  They do not even have exact costs for specific projects, in most cases.  They just believe that program X is underfunded by some amount, so they write a line giving that program that amount of money.

Some of that money you gave your sick buddy (the banking industry) was used to buy trinkets for his wife instead of going to his bills – because you didn’t tell him he had to pay bills with it, because you had to come up with the money in 2 weeks to help him or he was going to lose his job.  Because you did not think it through.  And it still has not helped him get back to work.

These are all numbers we can understand.  Now, multiply every number by 10,000,000 and it is incomprehensible.  That is what our legislators are dealing with right now.

You may believe the United Way and your Church are worthy causes, and they are.  But does it make sense to only have 2 weeks to figure out what kind of charity giving is best going to make a dent in the plight of the world?  Or what kind of spending programs will “save” our economy?  No matter what it is that you believe in, it makes sense that we should step back and think a little more.  Be sure what we’re doing is right. 

Let me know your thoughts on all that is happening with the Government, the Stimulus, the Economy, and the Real Estate market.  I’d love to hear your perspective.