Atlanta Real Estate, Real Easy

Trip to Dillard, GA

2012-01-26T04:43:00.000-08:00

View from our "Fireside" suite at the Dillard House

What a nice trip we had for New Year's 2012. I've never been to Dillard, GA. This year,my step-daughter asked us to join her, and her husband and our grandkids at the Dillard House.

It's only about 130 miles from our house in Henry County. We stopped at Tallulah Gorge to view the deepest gorge east of the Missippi. Karl Wallanda walked over it in 1970. Although the water doesn't flow through the gorge, it is still a great view. (The water has been diverted for hydro-electric purposes. However, water is released in the spring and fall from Tallulah dam. You can check with www.gastateparks.org/info/tallulah to see when water will be released

We had a great suite. It included a living room with a fireplace, a microwave, refrigerator and sink, a bedroom and nice bath. The grounds and views were beautiful. The Dillard complex includes about 30 cottages about 2 miles away. Each cottage is tucked into a wooded location and includes balconies and decks and a kitchen, living area and one or more bedrooms and baths.

The little towns leading to Dillard are chock full of antique shops an eateries. The kids had a great time "panning" for precious stones and feeding the goats at a place called "Goats on the Roof". They were also eager to jump in and out of the hot tub in their cabin, naked as jay birds. Lots of fun.

We hope to come back in the fall.

How to make your kitchen store more

2011-11-09T13:54:00.000-08:00

Ever since I was a little girl, I've been organizing the kitchen. I used to do it for my mother on summer vacation. I used to do that and wash all the china and put it back in the china cabinet - nice memories!

Now, I'm in a ranch style home with no basement. My kitchen is average with builder grade cupboards and always short on storage. The pantry is one of those 24" deep cabinets, but if you pack the cabinet, you won't be able get to the stuff in the back. And, the older I get, the less I want to bend.

A good client/friend of mine and I were talking last week and she wanted to organize her cabinets with pull out drawers. I couldn't believe the prices she was quoted.

Check out these pictures:

Since I'm a big DIY advocate, I decided to tackle this project myself. I was able to buy slide out "Elfa" shelving from the Container Store and really pack things in. I only had to make minor modifications by shortening the shelving tower in the lower cabinets.

Let me know if you want any pointers! The Elfa shelving is on sale sometimes - it's worth it to wait for the sale.

Things you see when you don’t take the train.

2011-11-02T18:57:00.000-07:00

My husband and I took a short trip earlier this month to visit with my sister and her husband while they were in Myrtle Beach. We flew. It was a great, short trip. We can do that because our daughter, Jennifer, flies for Delta and we have flight benefits (Thank you, Jen).

We always take the people mover train at Hartsfield-Jackson Airport. Especially when going to our gate – gotta get to the gate early and all that. And besides, it’s a quarter of a mile between terminals not to mention the long concourses!

So, when we came home, we landed and debarked at terminal “D”. I was getting down on myself because I hadn’t walked at all on our short trip (I'm in weight watchers). So, when we got down into the lower level to take the train back to baggage claim, I saw a lady, about my age in a wheel chair. I thought to myself, God gave you two good legs, use ‘em. So, I told my husband I’d meet him at baggage claim shortly and took off.

What a nice surprise to see a series of sculptures along the way. They were all modern sculptures from African artists. Very nice.
Next time you’re at Hartsfield, walk through the lower level and if you have time, stop to look at each one. They were truly beautiful – and I didn’t have to pay an admission charge to see them. According to the write-up above, they are on permanent display.

The Rock Ranch, 30 mins south of McDonough, GA

2011-10-27T12:18:00.000-07:00

The Rock Ranch near Barnesville, GA

We have six grandchildren and two daughters. This is a treat for me - the daughters are step-daughters and, since I never had kids, the grandkids are always a treat.

Last year we went to Southern Belle Farm here in Henry County. It was a great, warm, October day. That year they had a corn maze made in a likeness of Bobby Cox, the now retired manager of the Atlanta Braves. The kids went through that and played on everything that was available - a cool slide that goes under ground, a big "jumpy" pillow, they shot the corn canon and Bella (6 years old at the time) got a prize for hitting a target. We went on a hay ride, petted the cows, watched a pig race, fed the goats - great time for all concerned. They all came back to the house. Monty took the boys and got all of them in the shower and I took the girls - they were dusty and dirty and then we all ate pizza.

This year, we went to the Rock Ranch near Barnesville. This is owned by Truett Cathy - founder of Chick-fil-A. It was like Southern Belle Farm on steroids. All the same activities plus Tiny Town (a bunch of small buildings for the kids to play in), pony rides, peddle cars, train ride, zip line, several food/snack bars and there were hot-air balloons on hand to give people "tether" rides.

The hot-air balloons were gorgeous. They started inflating them about 4:00, but it was too windy. They managed to inflate them as the sun was going down. They were even more beautiful in the night sky. As the flame would burn, it made the balloons glow.

Don't miss this great, fun spot for you and your family. I left so much out - they have campfires at night and I think you can even camp there overnight and it's all good, wholesome fun. But just like Chik-fil-A, they are closed on Sundays.

Important questions to ask when listing your home.

2011-10-19T07:31:00.000-07:00

It’s about you, it’s not about me.

Have you ever seen it? You know what I’m talking about…that insipid, smiling picture of a salesperson on a billboard or bus bench or grocery cart. Maybe they’re even winking.

It’s funny, about 15 years ago when I got in the real estate business, it wasn’t too hard to represent a seller. In the good old days, we could list a house and be closed in 45-60 days and the owner would get what they asked and actually put a few dollars in their pockets. You could actually put a sign in the yard, put it in the MLS, put a lock box on the door and pray and it would sell. No additional marketing required.

Not so easy today. Now, we have to tell people that not only won’t they see the price they paid for the house, but it’s likely they’ll get considerably less. Try explaining that to someone who paid $660,000 and barely squeaked by with a $400,000 sales price or paid $380,000 and sold for $280,000. Sadly, this phenomenon is found in all price ranges. Wouldn’t you want to know that this was likely before you put your house on your market? Wouldn’t you want to know the market trend? That prices are going down? That the offer that’s below your list price is really good? That if you don’t take it, we might get less next month? And we’ll be lucky if the house APPRAISES for THAT lower price?

House finally sells, but below market

I recently met a seller who was listed at too high a price and turned down an offer they received which was about $50,000 lower than at what they were listed. They turned the offer down because their agent did not give them the information they deserved. They asked for guidance and the agent offered none. Today, they’d probably get $40,000 less than that offer.

In order to evaluate an offer, you must know what has sold recently; how does it compare to your house; what are the chances that your house will appraise for contract price; what’s under contract, that if it sells before yours, will negatively impact you; what do you know about lending guidelines; are they changing; if so, how will that affect you?

If you are truly “represented” by a real estate agent, they owe you a fiduciary responsibility to give you the information you need so you will be an informed consumer. Then, and only then, can you possibly make a decision that will improve your chances of closing.

Timing is everything. Don’t let opportunities pass you by. Don’t let an agent “buy your listing” by assuring you that they can sell it an unrealistic price. Don’t help sell the house down the street by being the high priced house that makes that lower priced house look like such a value. Don’t miss opportunity by not asking the right questions up front.

It’s no different than buying milk – if Kroger’s has it for $2.98 a gallon and Publix has it at $3.95 and they’re both on your way home, you’ll buy at Kroger’s!

Fiduciary - one often in a position of authority who obligates himself or herself to act on behalf of another (as in managing money or property) and assumes a duty to act in good faith and with care, candor, and loyalty in fulfilling the obligation :one (as an agent) having a fiduciary duty to another. (Miriam Webster Legal Dictionary).

Why did my taxes go up?

2011-10-09T18:26:00.000-07:00

There are a number of reasons:

The millage rate has increased;
The home was previously owned by an elderly person 62 years old or older and they have an elderly exemption which you are not entitled to;
The home has increased in value;
The home was new construction and there was no owner-occupant on January 1 (test for whether homestead exemption should be given);
The home was a rental property or was foreclosed the year prior to sale and there was no owner-occupant on January 1.

Taxes, as listed in the Multiple Listing Service (MLS), are a representation of what the tax office states the property was valued usually the year prior to the sale. Example, tax bill available is for 2010, house sells early in 2011, tax proration at closing is done based on 2010 taxes. Most tax offices publish the tax bill in October; however the assessment is published in the spring. If home is being sold by owner occupant, we may get more accurate information during the year if, in fact, the tax rate is about to change.

Now, the new buyer closes and moves into the home in early 2011. The tax assessment for 2011 has not yet been published or, the timing may be such that when the assessment is published, the new owner is not privy to the information and is unaware that the taxes will increase significantly because of one of the reasons stated above.

The unsuspecting new homeowner gets an unwelcome surprise when the tax bill comes out and is higher than what they anticipated. Now, their mortgage statement goes up to cover the higher escrow for taxes. The lender will give the owner an option to spread the payment over the next year, x dollars per month or to pay the shortfall in one lump payment.

Come January 2012, the owner can file for his own homestead exemption. In the spring, the tax office will notify the homeowner of the projected taxes for 2012. If the homeowner believes the taxes are too high, he may appeal that assessment within a certain number of days after receipt of the notice (varies by county). Later in the year, the tax office will notify the owner and the mortgage holder of the new tax rate. If the taxes go down, the payment would go down due to lower escrow requirement. In this case the owner would get a refund from the escrow account if the lender was collecting too much for escrows. If the taxes go up, the same procedure would be followed as outlined above.

It is unfortunate that sometimes the new owner is caught in a situation where they have to pay a higher tax rate during the first year or two of ownership and then the payment will stabilize.

Kansas with Kennesaw Symphony Orchestra

2011-10-01T10:04:00.000-07:00

My husband is quite the Rock 'n Roll fan. Thanks to him, we've seen a ton of great performances in Atlanta and the southeast. Yes, the southeast! One time James Tayor was touring and I knew he was going to be in Atlanta. But we didn't see him in Atlanta, we went to Nashville to see him. Why? Because Nashville has White Castles and Atlanta doesn't. We've also been to West Palm Beach to see 38 Special and REO.

Last night we went to the Cobb Energy Center to see Kansas. What a beautiful building - I had never been there before. I was struck by the elegance of the building. There is dark woodwork, colorful carpeting and huge glass chandeliers that look like they are made of ribbon, but as you look closely you see that it is delicate twisted glass that shimmers in the light. There is a 5 or 6 story wall of glass so as you walk up the stairs to the top floor, you can see Atlanta off in the distance. And the stair way is gorgeous too - instead of pickets, you are protected by glass panels so the view is relatively unobstructed. There is also a 5 story wall of Onyx - gorgeous natural stone illuminated from the back.

It remind me of the first time I went to "The Fabulous Fox Theater" in downtown Atlanta. That day we saw The Guess Who and Joe Cocker. It was a great evening. I was struck by the beauty of the Fox and the magical ceiling.

We've been to a lot of places in search of great Rock 'n Roll - we've been to

The Verizon Amphitheater in Alpharetta - The Steve Miller Band and Boston
The Gwinnett Center - Transiberian Orchestra, Styx, Reo, Manheim Steamroller, Don Henley and Stevie Nix, James Taylor and Carole King
Mable House in Mableton - Art Garfunkel
The Lakewood - a couple of times
The Fred - Kansas
Phillips Arena - Simon and Garfunkel, The Rolling Stones, Bob Seger, Neil Diamond, Rod Stewart, The Eagles, Manheim Steamroller, Transiberian Orchestra
Chastain Park - Heart, Joan Jett, Fleetwood Mac, James Taylor, Jackson Brown
The Tabernacle - Jackson Brown

Plus, we've seen a variety of princesses, muppets, witches and blue men, etc. with the grandkids and daughters at The Fox, Phillips Arena and the Gwinnett Center.

And, you can see major league football, basketball and baseball as well as college football and basketball and AAA baseball.

There isn't a weekend where there isn't something fun, cultural, sports or otherwise to do in and around Atlanta.

Not only would we love to help you find your perfect home, but we are always available for inquiries regarding things to do in Atlanta. If you need a tip, give us a call.

The tax man commeth and he's not always fair.

2011-09-26T12:52:00.000-07:00

Since we have lost so much value in our properties, some folks haven't thought to have their taxes reviewed and are paying more than they should.

I have had many clients ask me about how to appeal their taxes, so I thought I'd share what the Tax Assessor's office in Henry County, GA, told me today.

The tax office sends assessments yearly in May. Once you receive it you may appeal it by writing a letter to the Tax Assessor. Any appeal must be done within 30 days of receipt of the assessment. Once the Tax Assessor reviews your file, they will send you another letter showing that they either agree or disagree with your appeal.

If they agree, they will state what your new tax amount would be. If they disagree, they will state that and give you a procedure to appeal further. Should it be necessary to appeal their decision, you will need to bring evidence of recent sold properties to a hearing which would be convened to hear your case.

Believe it or not we have had a couple of properties re-assessed without asking for this to be done. That was a pleasant surprise. But since this is not the norm, you should really talk to the Tax Assessor’s Office directly and watch your mail for the assessment in May.

Should you need any assistance in gathering the recent sales in your area, give us a call. We'd be happy to help.

Did you know that Roswell might have been Barrington?

2011-09-23T12:52:00.000-07:00

I took a rare day off yesterday with my good friend, Leslie Jeffrey.

Barrington Hall Side View

I had purchased tickets to a Southern Trilogy Tour of Homes through Groupon back in early summer and we vowed that we would tour these homes once the weather cooled off and yesterday was nice and cool. The tickets allowed us to tour Smith Plantation, Barrington Hall and Bulloch Hall. Leslie lived in Roswell for some time and had never been to see any of the homes. Although I have been to the Swan House and the Atlanta Historical Society, I know nothing about the northern suburbs and so it was quite an adventure for me.

I was a little off in our planning and we got to Barrington Hall "after the hour". Tours begin "on the hour". So we explored the gardens first and then had a private tour - just the two of us with the docent. It was great. I had been to Stone Mountain, but all the structures there had been moved to the site. This was the original house, owned by Roswell Barrington! Who knew? I had no idea such a beautiful, original home existed so close to Atlanta!

Smith Plantation

After that tour, we went to lunch at a lovely cafe - Oak Street Cafe - nice atmosphere and tasty lunch. And then, we proceeded to go to the Smith Plantantation. We had a great guide by the name of Jane. She made it very interesting and she spoke about Mamie Cotton, the domestic who stayed on beyond the death of Mrs. Smith, because of the life estate that had been left to her.

Unfortunately, we were unable to see Bulloch Hall which was closed in preparation for a quilt display. We'll go back soon to see Bulloch Hall and follow that with shopping at the quaint local antique shops. It's fun to explore! There are actually a lot of great venues to explore in and around our area. Stay tuned for additional places of interest.

Never saw so much OSB in a tract home!

2011-09-18T18:08:00.000-07:00

Monty and I were driving through a new home subdivision the other day. Remember that this is 2011 and building has just about stopped in Metro Atlanta. So, watching a home being built is a fairy rare occurrence these days.

But, I was just awe-struck by the fact that the entire home is sheathed in oriented strand board (OSB). See photo below. When this house gets its exterior siding, it will have an all brick front and hardi-plank siding on the sides and rear.

About a hundred years ago, when I first moved to Atlanta (really 1986), I wrote a contract
on a new townhome that was just lovely. It was a very nice new home community. The next day, I drove through slowly and watched some homes being built. They weren't using OSB, they were using this blue foam board! I stopped the car, picked some up and snapped it in half with two fingers. I was incredulous that this was how they were building my house.

I come from Lackawanna, NY. The winters are long and harsh and we have several instances of high winds during the year, especially in the winter and spring. And, being a huge fan of the Wizard of Oz, I just couldn't imaagine what would happen if a strong wind blew through Atlanta.

So, when I saw that "blue board", as it's known in the industry, covered by vinyl siding, I freaked out. I cancelled the contract and bought something more substantial. The house I bought was much sturdier it had a wood product siding and just felt sturdier. Later, I would find out the joys of Lousiana Pacific Siding... but that will be a topic for future post.

Years later, when I became a real estate agent, I worked for a new home builder who built his houses with blue board and vinyl siding. Although he did a lot to make the home sturdy with special bracing, you couldn't get over the fact that if someone wanted to break into your house, all they had to do was punch through the vinly siding, the blue board, the insulation and the dry wall and they'd get in! Without breaking a window, forcing a door or anything. You can't do that with a house wrapped in OSB and another hard surface siding like brick or hardi plank.

So kudos to any builder that uses OSB as their exterior sheathing. Makes for a much stronger house and helps defend against the elements and thieves.

Pay for college or retirement - why choose?

2011-09-05T17:45:00.000-07:00

Buy a piece of real estate for each child and avoid the dilemma...

I watched this story on the Today show today. (If you are on an ipad, you may need to
click here).

Visit msnbc.com for breaking news, world news, and news about the economy

It's a debate on how or if you should fund your child's education or your retirement fund. I submit to you that you can do both!

This has always been a sore topic for me. I am first generation Italian. I am the last of 5 children. I would have loved to go to college. But, my parents worked very hard, my father was a steel worker and my mother was a seamstress in a factory. Although I wouldn't consider us poor, I certainly wouldn't consider us rich. I didn't want to be a drag on them - they were in their late 50's and early 60's when it was time for me to go to college. For some reason, the State of New York said they made too much money in order for me to qualify for any tuition assistance.

My only choice was to get loans, etc. Initially, I was unwilling to do that, so I went to school with benefits from my employers. I would get reimbursed for tuition if I did well and it took me about 4 years to get a 2 year degree. I earned one year of credits over several semesters of night school. Then one year, I got layed off from my job and went to school full time. I did take out a loan for tuition and I paid it off over several years.

As I got older, I started hearing about parents who felt compelled to pay for their kids' education. They would do a cash out refinance to take equity out of their houses to pay for the education. Or they would contribute to one or more financial plans available to save and have enough money when the child needed it. They would even borrow against their retirement fund. All kinds of things.

Did you ever consider buying your child a rental property?

It makes sense. You don't have to invest a lot. If you buy it when your child is very young, you'll have more time for the mortgage to be paid down and the equity to build and, if we ever get back to normal appreciation, it WILL appreciate in value.
Today, it makes more sense than ever. Houses are incredibly cheap. Imagine buying something for around $50K +/- $10K. You can certainly rent it for $600/mo +. When the child needs the money, sell it or do a cash out refi at that time and keep the asset and keep collecting rent.

See: Give your kids a chance and be sure to check out homes for sale using the tools on the side of this blog post or click here for homes under $60,000.

Has it come to this? and why you shouldn't wear crocs to a crime scene.

2011-09-04T16:56:00.000-07:00

First break-in - too much
broken glass for crocs

Yes, I did wear crocs to this crime scene - thieves threw a big rock through the door which caused the alarm to go off. There was glass everywhere. I couldn't go into the house all the way. I had to tip toe gingerly into the kitchen so I could survey some of the damage. They smashed the thermostat and the alarm control panel off the wall. We dealt with that break-in and about a month later... another theft at the same house.

I got a phone call from a fellow who was the neighbor of one of my listings. He used to cut the grass for the homeowner and wanted to get in touch with her. I gave him the information and then he said, "By the way, did you know the air conditioner is missing?"

No, I didn't know the air conditioner was missing! Very frustrating! So, I ranted on facebook for a minute and two friends commented.

One said, "While my rental is vacant, I had the appliances and the air conditioner removed until I get a new tenant."

The other said, "In some areas, we don't advertise the address of the rentals we manage nor do we put a sign in the yard."

Amazing!

I will be talking to my alarm company representative and see how hard it is to put a sensor on the air conditioning compressor so that if someone tries to steal it, the alarm will go off.

Of course, it didn't help that when the owner moved out she:

Took the curtains off one of the front windows
Didn't have anyone cutting the grass
Didn't ask any neighbors to park in the yard
Generally left the place looking abandoned...

I welcome any words of wisdom.

Straight Talk About Internet Real Estate Sites

2011-08-24T19:50:00.000-07:00

Years ago, real estate was a closed industry. By that, we mean that the public had no way to easily access the current inventory of available homes without the services of a real estate professional. Indeed, inventory was a closely-held secret with agents having the 'book'... literally a phone-book sized publication that they guarded with their lives. After all, the old axiom is that 'knowledge is power'. In those days, buyers based their purchase decision based upon what they were shown, not what was available. In the late 1990s, the real estate industry transitioned to an internet-based model and, Eureka, consumers now had access to all the available inventory. Big improvement, right? Maybe not.

While legitimate brokers and agents now display their inventories on the internet and each other’s sites, the past few years have given rise to a type of provider known as an 'aggregator'. An aggregator, simply stated, is an entity that's not directly involved in the sale of real estate but collects a fee for being nothing more than a matchmaker. They also allegedly provide “value added” services such as access to information about sold

properties, etc. Suppose you were in the market for a new television. If so, several choices are available. You could investigate the products of Sears, Best Buy, Target, etc, or you could use an aggregator website who will collect a fee for putting you in touch with... Sears, Best Buy, Target, etc. Presto!!! You've just introduced an unnecessary middleman into the transaction.

The real estate aggregators are especially slick, in that they collect their fee from the broker, not the public. But the principle remains the same... a middleman is involved who is neither the buyer, nor the seller, nor adds any value to the transaction. Recently, we had a customer who landed on a web site we'll call "Trillow". He contacted us wanting information about a particular home he saw on Trillow because Trillow didn't display full information (street address, price, etc). After more than an hour of research, we were able to determine that the home sold more than a year ago and for about $100,000 more than the 'range' suggested by Trillow. In this case, Trillow was not forthcoming about information and, in fact, was advertising a property that was not for sale at all. Their hope was simply to gain customer contact information and then sell it to one of their partner-agents.

Other sites promise a commission rebate at the time of closing. This is done by selling customer contact information to agents (usually rookies) who agree to rebate part of their commission to the buyer at closing. The problem here is obvious. If you had brain cancer would you look for a surgeon with little experience who offered a reduced fee, or would you want the most experienced surgeon you could get? A current company we'll call "Bluefin" does exactly this - sells your information to an agent who gives you a modest rebate and pays a fee to Bluefin.

In summary, lots of real estate information is available online. Some of it is legitimate and some is a scam. Legitimate real estate agents/brokers can be tremendously helpful while unnecessary middlemen provide little value whatsoever. Simply ask yourself, 'do I really need someone to direct me to Sears, Best Buy or Target? Or am I perfectly capable of finding them myself'?

Our advice, get a good agent, they’ll provide necessary and accurate information for your transaction.

2011-04-30T10:04:00.000-07:00

What’s Your Balance?

Financing outside the box...

I hadn’t heard of this either, but, believe it or not, people are doing it. They are buying foreclosures in Georgia with credit cards.

A good friend of mine said, Carla, you have the money to buy that foreclosure—put it on a credit card. I thought she was crazy, but believe it or not, now you can buy a house, not just a building lot, but a real live house for just over $10,000.

Yes, you need to fix it up, but if the foundation is sound and the framing is OK and interior walls, and fixtures are OK, you’re getting all that AND the land! It’s a beginning. Look at the pictures below of these foreclosure homes that were fabulous deals.

I recently sold the two houses pictured below and the buyers used credit cards. Yes, credit cards! How's that for thinking outside the box, or to coin a phrase, financing outside the box. These folks are handy. They’re not afraid to tackle painting, do flooring, take out walls or to add walls. They’re contractors and they can do just about anything. But even if you can’t do it yourself, you can always call a contractor—ask me, I have people I can refer you to!

As a matter of fact, the foreclosure in the top row of pictures was in really nice shape inside. It needed very little. But they wanted to make it better and took one look at that massive kitchen and decided to re-orient it just a bit. They installed a big breakfast bar, cut the wall between the kitchen and living room, installed ceramic tile and framed in a walk in pantry to the right of the stove.

You wouldn’t believe the difference and it just took them some sweat equity and about $1,500 to do all that. In time, they’ll replace the siding, but for $25,000, they’re living pretty cheap!

Can’t wait to see what they do to the foreclosure in the bottom set of pictures!

(Full disclosure.... The house in the bottom set of pictures had been vandalized, the copper pipes were removed - so what! a couple thousand dollars for plumbing, some new sheet rock and you're good to go. One estimate for repairs for this house was about $15,000 - that's for material and labor. So, for roughly $30,000 you have a great home. It's worth it. It's on a very nice street with neighbors that have lived there for years. The houses all around it were in nice condition too! Try it! You can't live cheaper than this!)

Foreclosures down in Metro Atlanta

2011-03-21T12:24:00.000-07:00

Information provided by Data Intelligence Corporation

The chart above shows data for the metropolitan Atlanta area. It charts the number of properties involved in foreclosure notices; the number of foreclosures; and the number of bank-owned sales.

As you can see, the number of foreclosure notices as well as the number of foreclosures is down dramatically from a high of 12,739 and 6,097, respectively, compared to September of last year.

There are some interesting facts that one can discern from this information. Fewer than 8% of the homes that received notices are actually being foreclosed on, currently. September's numbers showed closer to 50% of homes receiving foreclosure notices being foreclosed. This means that banks may be entertaining more short sale requests or requests for modification. Whichever is actually taking place, the flood of foreclosures has slowed.

The interpretation by some experts is that there remains a large "shadow inventory" (which is evidenced by the large number of pre-foreclosures) and the banks and the government have figured out a safe number of homes that can be released into inventory without flooding the market and further depressing prices.

The correlation between the value of the properties that received the foreclosure notices vs. the value of the bank owned sales is interesting as well. This seems to indicate that, when properties are foreclosed, they subsequently sell for less than 1/2 of the original unpaid mortgage. This will have a large, negative impact on traditional sales, but will also be tremendously beneficial to current buyers.

For more information regarding your area, contact us for a personalized report.

Trash to treasure in one easy loan

2011-01-28T05:10:00.000-08:00

This home was dirty and had been stripped! It was missing the entire kitchen, the 2 AC compressors, 17 interior doors, one furnace, the pull down attic stairs, lots of electrical fixtures, 1/2 of the master bath vanity, the hall bath vanity. And, it had termites.

But, an enterprising school teacher who kept her eye on the prize, listened to my advice and the lender’s advice and we were able to purchase this massive, 4 bedroom, 2 and 1/2 bath home with formal & informal living and dining plus an office all on a full basement for $93,000 plus repairs!

How did we do it? With a knowledgeable team! It started with Joe Farro, Premier Capital Mortgage, 678-289-6600. Joe created a system whereby buyers could buy homes that need TLC (non-structural issues) using the FHA 203K Streamline Loan.

This requires agents (such as me) who understand the process, to work with preferred contractors like Andy Matyszewski (ABM Services, 770-288-2368) to help home buyers identify homes that need no more than $35,000 in repairs. We need to make sure that the home will appraise for the purchase price plus the cost of repairs, then, once the buyer gets approved and closes, the contractor comes in, makes the repairs. When the repairs are complete, the contractor gets paid from funds set aside at closing by the lender. So, the price of the home was $93,000 + $35,000 in repairs for a total of $128,000. This home appraised for $136,000 after repairs.

Obviously this is a simplified explanation. For more detail—call us—Carla or Monty Haight! The FHA 203K Streamline may be the answer to buying that foreclosed property that needs some TLC to make it shine and make it your own.

YOU DID WHAT?!?! Five ways to disapprove your own mortgage

2010-10-11T05:39:00.000-07:00

As most of us know, there are several basic criteria that are used to approve or disapprove a mortgage application. These include income, employment history, credit rating, debt-to-income ratio, property appraisal, etc. In metro-Atlanta, the typical mortgage application takes 3-6 weeks to process and, during this period, it is crucial that borrowers fully understand the process. If they don’t, they could inadvertently undermine their own application. Here’s how.

There are three principal players at the mortgage company – the loan officer (or mortgage originator), the loan processor and the underwriter. The loan officer takes the initial mortgage application from the borrower, reviews the credit report and other basic qualifications, provides information regarding loan programs, interest rates, etc. and advises the buyer of their loan options.

Once the application is complete, the packet is passed to the loan processor. This person is responsible for verifying information provided by the borrower, analyzing documentation, obtaining missing documents and generally ‘packaging’ the file. When the file is fully ‘packaged’, it is then sent to the underwriter.

The underwriter represents the final, and sometimes the most difficult, hurdle in the process. While all lenders want to lend (after all, it’s how
they make a living), they only want to make good, solid loans with a high probability of prompt repayment. The underwriter is the person who makes this judgment, based upon the contents of the loan packet.

Once again, this is typically a 3-6 week process and, during this period, it is suicidal for a borrower to have any adverse changes to his/her situation; for example, losing your job, declaring bankruptcy, having a car repossessed, etc. Any adverse change can easily result in disapproval. One of the most common occurrences is discovery of new debt, thus increasing the debt-to-income ratio. How is it discovered? Through review of a second credit report which is typically ordered by the lender just a couple of days prior to closing.

We always tell our buyers that, until the day of closing, they should buy absolutely nothing….not new furniture, not a car, no vacation (where large sums are charged on a credit card), no refinancing of anything… nothing. Taking-on new debt is always serious business, and it’s just dumb to do it while a mortgage application is pending.

Today’s mortgage environment is much stricter than in the past and underwriters are under tremendous pressure to make only ‘good’ loans. Don’t cause your own application to be disapproved by doing something dumb.

MCDonough

2010-09-22T04:44:00.000-07:00

McDonough Courthouse with
Park in the Square in foreground.

McDonough has matured to become one of the largest cities in Henry County. It is a city in which to live, work, play and worship. We are proud of our excellent schools, medical facilities (Henry Medical Center and a plethora of specialists located a stones throw from the hospital) and outdoor activities for the entire family. McDonough is also honored to have been designated as a "City of Character" and a City of Ethics" by the Georgia Municipal Association.

Strolling through the historic "square", you will find quaint shops as well as fantastic restaurants. Don't miss the annual Geranium Festival in May!

Henry County Justice Center
built in '2007

McDonough is the county seat for Henry County and is the location for our county courts.

McDonough City Hall - built in about 2005

Just off the McDonough Square, you'll find the City of McDonough city hall. One thing's for sure, a trip to the McDonough Square and it's surrounds will yield a ton of great and useful places to visit!

There are three outstanding golf communities in McDonough, Cotton Fields, Lake Dow and Eagles Landing (the former home of the ladies LPGA). Check back for pictures of these areas.

McDonough is served by two zip codes - 30252 and 30253.

To find your dream home in the north-east part of McDonough, click here

To find your dream home in the southern part of McDonough, click here

The Big Downpayment Myth: Buying a home with little (or nothing) down

2010-09-13T05:16:00.000-07:00

I was born and raised in Detroit, Michigan and, like all other major metropolitan areas, we had three television stations to watch – the ABC affiliate, the CBS affiliate and the NBC affiliate. Back then, kids played outside constantly because, frankly, there wasn’t much television that was worth watching. In the late 1960’s, cable entered the marketplace, followed by satellite. Suddenly, there were literally hundreds of channels to watch. Big improvement? Perhaps not.

Today there are hundreds of channels available to every household ,greatly increasing the flow of information. Unfortunately, much of it is inaccurate. To illustrate, let’s consider home mortgages.

Tune to CNBC, Fox Business Channel, MSNBC, Bloomberg TV or any other channel with a business orientation and within one hour, someone will tell you that the days of buying a home with little-or-nothing down are long gone. Absolutely not true! Here are three outstanding mortgage programs to consider.

FHA Home Loan. The FHA home loan is currently the mortgage of choice for many homebuyers. Contrary to what you may hear on TV about 20% downpayments, the FHA loan requires a downpayment of 3.5%. That’s right – 3.5% Further, this loan can be used to buy homes up to a sales price of $346,250 in metropolitan Atlanta. With the sharp price declines of the past several years, that’ll buy a lot of house.

VA Home Loan. Created by Congress following World War II, the VA home loan represents a big “thank you for your service”. For those meeting minimum service requirements, a loan of up-to $417,000 is available with zero – that’s right, zero – down. And as of several years ago, this loan is available to many members of the National Guard and Reserves as well.

USDA Rural Development Home Loan. Although not as well-known as the previous two loans, this mortgage product has recently skyrocketed in popularity. It is designed to encourage the purchase of homes in ‘underpopulated’ areas’. The term ‘underpopulated’ can be quite misleading, though, as large portions of metro-Atlanta qualify for this loan.

Loan amounts vary by county, but are generally between $141,000 and $175,000 in metro-Atlanta. And the required downpayment? (drumroll, please…) ZERO!!!

So, in five minutes you’ve learned of three mortgages that are widely available and require either little-or-zero down. What’s next? First of all, turn-off the TV (it’s all bad information, anyway). Second, call a reputable mortgage broker to discuss the information above. He/she will be very familiar with all three loans and will qualify you in a matter of minutes. Once qualified, contact a good real estate professional (not surprisingly, we can help with this one) and begin the search for one of today’s bargain-priced homes. Discount pricing and zero down… what a concept… what a country!

Monty Haight

Is the mold in my home toxic or harmful?

2010-09-08T11:34:00.000-07:00

This and other interesting facts about mold can be found in a flyer provided by the College of Family and Consumer Sciences and the College of Agricultural and Environmental Sciences through the University of Georgia Cooperative Extension Service.

The most noteworthy item is Item #4 from pamphlet HACE-E-62 "Mold - Five of the most commonly asked questions about household mold, with answers."

"#4. Is the mold in my home toxic or harmful?

• According to the Institute of Medicine of the National Academies, mold in damp indoor environments is associated with upper respiratory (nasal and throat) tracts ymptoms, cough, hypersensitivity pneumonitis in susceptible persons, wheeze, and asthma symptoms in sensitized persons.

• Although the media talks about ‘toxic mold,’ the fact is that only a few fungi produce toxins on their spores. However, it is best to limit your exposure to all molds. "

Be sure to go to UGA Website and view the report for answers to the following questions:

How do I get rid of excess mold?
Who can test my home for mold?
Where can I find a mold remediation specialist?
How can I be certain that my home is mold-free?

Stockbridge City Detail

2010-09-06T17:32:00.000-07:00

Stockbridge City Hall - Still under construction 6/2010

The City of Stockbridge is located in the northern part of Henry County, Georgia. It was founded May 15, 1821. The county has an area of approximately 331 square miles located in the Piedmont Section of northern Georgia and is surrounded by the counties of Butts, Clayton, Dekalb, Rockdale and Spaulding.

Stockbridge is conveniently located off of I-75, exits 228 and 224. Stockbridge is only 20 minutes to the airport and about 30 minutes to downtown Atlanta. Conyers in Rockdale County is less than 15 miles to the east.

The City has recently built a brand new City Hall in the heart of town.

Community pride runs strong with the annual Olde Stockbridge Days Festival in the summer where vendors will display and sell handcrafted jewelry, baskets, crochet items, and wooden roses to name a few. There will also be plenty of activities for the children such as pony rides, train rides, sand art, candy art, inflatables as well as a climbing wall.

Relax on those steamy summer nights with music in the park. Music In the Park is held in Memorial Park located at 106 Jennings Way, Stockbridge, Georgia from 7:00 – 10:00PM monthly April through October.

City information - Source:

http://www.cityofstockbridge.com/

To search for homes in stockbridge - click here.

Henry County Golf Course Communities

2010-09-04T20:17:00.000-07:00

Life in the south wouldn't be complete for some folks without spending a good amount of time on the golf course. Lucky for them. There are several to choose from. Stay tuned as I add photos and the information is "fleshed out". In the meantime, if you have any specific questions that just can't wait, give us a call. Call Carla at 678-637-3046 or Monty at 404-806-6871.

View Henry County Golf Communities in a larger map

Carla completes NAR Certification "Short Sale and Foreclosure Resource"

2010-08-13T13:34:00.000-07:00

It's been several months, and this is kind of old news, but I moved this information off of my website and want to put it here for people to find easily....

Short Sale

Carla completes NAR "Short Sale and Foreclosure Resource" certification course.

These trying times call for specialized training. More and more, our clients and their friends and relatives find themselves unable to pay their mortgages and sometimes face foreclosure.

A foreclosure is the most damaging event for your credit rating. Let me help you look into your alternatives;
you may be able to negotiate a short sale with your lender. (A short sale is simply your lender's agreement to allow you to sell your home for less than what is owed.) You'll need help navigating these tricky waters. As usual, we have prepared ourselves and offer expert information.

If you, your family or friends are in this difficult situation, be sure to pass our name on. We're ready to help!

FHA MIP Charges coming in October

2010-08-11T18:04:00.000-07:00

Click Here to view HUD Letter

Chaos at the Courthouse

2010-08-04T04:34:00.000-07:00

Wow! So, on the first Tuesday of July, I went to the Henry County, Georgia, Court House to observe a foreclosure sale. Can you spell chaos?

Don't know how it is in other states, but here in Georgia, there was no organization to the sale. I got there early, not knowing what to expect.

Our court house is on a quaint square with roads leading north, south, east and west out of the square. Traffic is always heavy - really doesn't matter what time of the day you go through. It was probably 95 degrees when it started. I got there at 9:00 when it was only 80 degrees in the shade. But at 10:00, the sun had shifted and the steps were in the full sun. A crowd had started to gather at about 9:40. Soon, some people started to show up with boxes, briefcases, clipboards, etc. Some of them were dressed rather interestingly. The major law firm was represented by a man - I swear he was in a Hawaiian shirt, fishing had and cargo shorts. But I only caught a glimpse of him before he was swallowed by the crowd. Then there was a lady in a nice dress and I swear five inch, pointy-toed heels - (I didn't wear those when I was 20, let alone now - I'd get a nose bleed from the height if I didn't break an ankle first). Then there was a conservatively dressed, young lawyer with dress pants, long sleeved shirt and no tie - spoke in a monotone.

One gentleman in a polo shirt and jeans asked if someone could witness his call and I and another spectator approached while he read one property foreclosure notice - word by word, single spaced - one solid page. We each signed the document and that was that.

Wished I hadn't done that because while we were "witnessing" this "call", a gentleman representing a major player law firm in our area showed up (he was the one with the hat and the Hawaiian shirt) and read what seemed like an endless list of names, addresses and amounts. By the time I realized what was going on, there was quite a crowd near him and it was hard to hear from where I was standing. They had two different stacks of papers (probably two different banks). They had a procedure, which was a little confusing when it first started. But here's the gist of it. As they read an address, if someone in the crowd was interested in the property, they would set it to one side and if no one was interested it would go in the box.

So, they plowed through the documents and finally came to the end. The property that I was there to hear about was my listing which we had been notified would be foreclosed on that first Tuesday in July and in fact, no one was interested in buying it for $183,000, $8,000 more than I had it listed for and probably the peak of what that neighborhood might bring.

So, at the end of the reading of the defaulting properties, the law firm representative started auctioning the properties that the crowd had been interested in. I assume at the end of the auction, they read the ones that no one was interested in and claimed them for their bank-client. I didn't stay to the end.

But that's not the chaotic part. While all of the above was going on, at least 4 more law firms' representatives were reading/calling their notices. You could barely hear any of them because of the din of the traffic. Not to mention, the discomfort from the heat. And they were not speaking loudly, just in normal voices. You could only hear if they were standing right next to you, like the young, conservatively dressed attorney who happened to be standing next to me and, again, spoke in a monotone.

Surely, there is a better way to handle this! You'd think that the banks and lawyers could devise a system themselves so that more of the properties could be auctioned. You'd think that the clerk of the court would somehow be involved and perhaps have the reading done in alphabetical order by owner, regardless of the bank/law firm. Then each law firm representative would read theirs one at a time as their clients names came up.

You'd think it could be done in a quieter spot. You'd think in the heat of the summer, they could do it earlier. I wonder what the banks would think of the procedure. Surely they are not being properly represented if no one can hear the reading. You'd think that they would insist on a better procedure so that they don't end up with the properties.

The only reason I went was to see if my listing actually got foreclosed. I didn't want to remove the sign/lockbox prematurely. It has happened on many occasions where we were told that a property would be foreclosed and then it wasn't.

I guess as a non-judicial foreclosure state, the chaos comes with the territory. One of our gubernatorial candidates wants to change the foreclosure process in our state. I've been told that if we change from a non-judicial foreclosure state to a judicial foreclosure state, that our interest rates would be higher. I think that would be just fine. Clearly, something needs to be done.

Consumer Centric Contact

2010-07-23T06:12:00.000-07:00

Once upon a time, it was easy. If someone wanted to contact us we would give them our phone number - office or home - and either they or I would initiate the call and if the other answered, guess what, we were communicating! If they didn't get us or I them, a message would be left, either via a human and later via voice mail. We even had pagers - not too long ago, and now, they've gone by the wayside.

Now, it's much more complicated. There's email, twitter accounts, facebook, text messages, email messages, home phone (maybe), cell phones and office phones and efaxes. So, when someone wants to communicate with you how do you keep in touch without missing some important information? How do you get information to people in a way that's easiest for them?

In the past year I worked with five clients who didn't have an email address, didn't have a smart phone, didn't have access to a fax. Took a lilttle extra time, but I think the relationships were stronger because of more face-to-face time. You know what, we still got to the closing table.

Today, it's best to ask! I might check twitter once a day with tweets from some people I want to follow appearing directly on my phone. Whereas I'm on email many times a day. I'm on facebook as time permits. I always have my smart phone with me, but that's only for texts and phone calls. Don't call the office, you won't get me, but I will get a message and usually when people call, they want me, not my voice mail. Oh, and I never answer the home phone. I only have it to service my alarm system. Don't assume that everyone wants text messages or pays for the service. My motto, ask before you text.

I can do a lot of things with my Windows Mobile Phone, but it doesn't mean I'm going to. How can you be talking to a client, opening a lockbox with your phone, reading email, checking facebook, looking at the twitter stream and keep your wits about you? I can't! I might go onto facebook with my mobile phone if I'm bored silly in a doctor's office, but other than that - I do it from my laptop or desk top.

The smart phone does make a difference, though. When I drive down a street and a client asks, why aren't we looking at this property, I can look it up and see why I didn't have it on the list (maybe it was too expensive or not configured for their needs) and I can look at faxes without having to run to the office. I can even take pictures of things, if I need to. I can use it to show short videos to clients, too! It's kind of like a "Swiss Army Knife".

Moral of the story - I ask how people want to be contacted and then act accordingly!

What do you think? What's your preference?

Still Tasty, really?

2010-06-27T09:20:00.000-07:00

Completely off topic for real estate, but maybe not. Check out this website:

Still Tasty

Some people, (present company included) keep things forever. We forgot we have them, either in the refrigerator or in the pantry.

So, as you get your house ready for sale, take a look at the pantry. Just like a closet, you don’t want it to look stuffed. So, go through your staples, your cereals, etc. and if you don’t know if it’s still good, check out the link above and, act accordingly.

Do you know how foreclosures affect neighborhoods?

2010-05-15T05:52:00.000-07:00

Yes, there's the obvious. The grass gets tall, the home not only is abandoned, but looks abandoned. There's old newspapers in the yard. And there's always the threat of people breaking in for nefarious activities or vanadalism that could spread to your home.

But monetarily, for every foreclosed home that shows up in your neighborhood, your property value will decline by 1%, initially. But worst than that, when that foreclosure sells at a drastically reduced price, your values will tumble even further.

We have been faced with homes dropping in value by over 25%. Example: appraised for $268K in May only appraised for $210K in October; home appraised for $615K in May, sold for $400K the following year. It's not good and we're not out of the woods yet.

You might ask - were these bad appraisals? The answer is, No! At that time, they were good appraisals. (An appraiser makes a judgment based on the facts at that point in time - it's a snapshot. Usually appraisals are good for 90 days and they are one person's educated analysis of the value. Remember we all have opinions and another appraiser may have a totally different opinion.) However, when the market deteriorated after that point in time, the values changed. And whereas years ago, foreclosures did not define the market, today they do. Years ago, appraisers did not use foreclosed homes in their analysis. Today they have to.

Our company President, Dan Forsman, declared that home values have bottomed. Let's hope he is right. Because, for those that had to sell during this turbulent market, it wasn't easy or pretty. The good news is they sold, the bad news is they lost value.

Check out the complete report - http://bit.ly/HomeValuesHitBottom

Buyer wants refrigerator and water heater needs to be serviced

2010-05-07T17:03:00.000-07:00

What do these two things have to do with each other?

Well, "Buyer wants refrigerator", was an actual stip that a good friend of mine wrote years ago on a contract where she was representing the buyer. So what! I want a million dollars, but that's not gonna happen.

The second one, "Water heater needs to be serviced", was written on a special stip just the other day. Well, maybe so... So what?

Neither of these stips say what has to be done, who's going to do it, by when, and who's going to pay for it.

Many times we face challenges when working with our fellow Realtors(r) and home inspectors. The inspectors don't always write things clearly but as agents, it is imperative that we clearly and concisely ask for the repairs in the special stipulations on either the "Amendment to Address Concerns" or the "Right to Request Repairs" forms.

Make sure you and/or your buyer are at the inspection - at least for the summary. If you do not understand what the inspector has written, ask them while you are at the inspection or call them after the fact. It is beneficial to use an inspector who takes photos so we don't have to play a guessing game. If you are fortunate to be using an inspector who takes photos and prepares a good report, furnish it to the seller's agent even if it is not required - it makes life easier for all concerned and streamlines and facilitates the process for all involved.

So, "Buyer wants refrigerator" may be better stated as, "Seller shall leave white, Amana, side-by-side refrigerator currently installed in the kitchen at no cost to buyer".

I usually start a group of repairs with the following preface:

Seller shall perform the following prior to closing:

1. Service water heater by draining it and ensuring proper operation.
2. Fill the crack on the front porch and repaint with matching paint as necessary.
3. etc.

And/Or maybe, you might see me write: "Seller shall, at seller's expense, have all carpets professionally steam cleaned immediately after vacating the home and prior to granting possession to buyer."

Don't leave things open-ended and even if the inspector says something "should" be done, it is up to us to ensure that it IS adequately spelled out.

Don't forget the caveat "all repairs must be done in a good and workmanlike manner". I'll never forget a sneaky repair that was done once where a gutter was loose. The inspector wrote it up and I asked for it (I thought cliearly). Unbeknownst to anyone, the wood behind the gutter was rotten. So, the seller re-fastened the gutter and left the rotten wood. Not a good thing and I truly believe this was not done in a "good and workmanlike manner." To me that's kind of like "Do unto others..."

Your lawn and the first impression of your home

2010-03-29T07:12:00.000-07:00

I remember when I was a little girl, I took biology in school and the teachers scared us to death about walking around barefoot. They said we would get some dread disease that we could pick up by stepping on sidewalks and lawn that had icky stuff that would come in through our pores or cuts on our feet, etc.

Unfortunately, because of this, I never walked around barefoot on my dad's beautiful Kentucky Blue Grass lawn. He took great pride in maintaining his lawn. Back then, edgers weren't popular (or at least we didn't know about them) and we actually trimmed around the flower beds, driveway and walkway by hand with a little scissor. I can't even imagine doing this now. All I ever wanted was a nice lawn. And now, my husband and I spend a small fortune (not really- about $55/treatment - 9 per year) to keep our Bermuda Grass weed free and thick. I don't walk barefoot on it either!

I cannot believe the difference in my lawn! When I bought my home as a foreclosure, the lawn was thin and I had more weeds than lawn. Once Monty and I got married, he talked me into a lawn service and I just can't believe the difference!

Walking around my neighborhood the other day, I found lots of lawns that had lots of weeds. I don't think folks realize how easy it is to maintain their lawns. If they would just do the following:

put down a pre-emergent treatment in the fall (this treats weeds before they sprout) and again in the early spring (when the grass is still brown).
put down a post emergent once any residual weeds come up. There are products you can use when the grass is still brown and all that's green is the weeds and another when the grass is mostly green and there are weeds still in the lawn.
fertilize twice in the summer, once when the lawn greens up and again in late summer.
1-2 inches of water per week. Water deeply - 15 mins at a crack doesn't do anything. Put a clean tuna can in the path of the sprinkler to measure how much water is getting to that area.
Get a soil sample - do this through the extension office - it's easy to do and it only costs $8. This will tell you whether you need lime. If you have Bermuda grass (which most of us do), it likes lime! But save your money, don't do it unless you need it.
Oh! and don't cut it too short - you only want to scalp it early in the season - maybe the first cut. After that, leave it about 2 inches high. This helps it not burn up when we get dry spells.
(please note - a lot of the products are weed and feed products so you accomplish two things at once).

I was a consultant for Scott (lawn products) last year. They make good products with no fillers (that means each granule has everything your lawn needs from that product) and it's hard to hurt your lawn by improperly applying the product. MAKE SURE TO READ THE LABLES! Some products are not safe for some lawns - when in doubt, speak to an employee in the garden center or call the manufacturer of the product you are thinking of using.

But whatever you choose - professional applications or DIY - it makes your house look so good. You might have a nicely painted home with neat window treatments and nice shrubs, but a bad lawn looks like you went out with stains on your clothes. Just my opinion. But, I know when I take buyers out to look at properties, they really appreciate a nice lawn. Landscaping does contribute to the value of your home.

And, again, if you have a Bermuda lawn, once it gets the nutrients it needs and the weeds are gone or dying, it takes over and fills in. It won't take it long to get the upper hand and reward you with a beautiful carpet-like grass.

The many hats of a real estate agent!

2010-03-27T18:24:00.000-07:00

Many times, I sit with sellers and have to explain about the various hats I wear. When we agree to list a home for a client, the client sometimes begrudges us our commission rate. It's hard for outsiders to understand that when we begin representing them, we begin laying out large sums of money on their behalf for a home that may never sell.

Agetns end up wearing many hats. The first hat we wear is that of an analyst. While some agents use the PFA method (plucked from the air) for pricing a home, it is definitely not my style. When someone brings raw data to the table (CMA printouts from the MLS or prints of recent solds) I just consider that raw data. While pictures paint a thousand words, it's impossible to know, just by looking at a picture, how big a house is or how many bedrooms or baths are inside, or the finish quality of the interior or how old the HVAC system is and a myriad of other details.

In order to price a home correctly, we must analyze the size of the subject home (the home to be sold) as well as all the details including age, condition, size, lot size, location, etc. Once we know these things, then we can compare the subject home to other, recently sold homes. It used to be that we could compare your home to home sales that were up to 6 months old, but now, with recent changes in appraisal practice (HVCC rules), we can only go back 3 months. Years ago, we did not use foreclosed homes in our analysis, today, if they are there, we must use them. Anyway - there's a lot more to this and I don't want to bore you. Suffice it to say, this is my analytical phase and consequently I were my analytical hat.

Once the homeowner agrees to list their home with me and my company, I put on my marketing hat. This is when I design flyers, internet marketing campaigns of all sorts, begin the process of raising awareness about your home, audit the listing in all the places where I can manipulate and expand the descriptionn, add photos, etc.

Oh, and did I mention my staging hat (OK, sometimes we don't actually stage, but we sure give constructive criticism - why? - so you can sell your home!)

Oh, did I mention photos, well then I need to wear my photography hat. Make sure I take good photos, right exposure, toilet seat down, clutter hidden, good resolution. (Our MLS used to do drive by shootings. If the garbage can was out, there were two cars on the grass, no matter - they'd take the picture anyway! - now we're very careful to put your home in the best possible light!)

Experimenting with photos at dusk (There's a reason for this - ask me!)

Oh, and I forgot to mention my writing hat (someone has to come up with all the descriptions, ensure spelling is right, etc.)

Now, I put on a reporter's hat - "What?", you say. Yes, I actually arrange for you to receive reports so that you can see whether our marketing is working and how many "hits" you've had.

Well, finally I get some interest on your property so out comes my salesman's hat! Gotta convince them it's not too far to the interstate, shopping, that the schools are great, etc.

Good news! Someone wants to write an offer - now I have to put on my negotiating hat! Whew! are we done?

No, now that we've negotiated the contract, wearing my negotiator's hat; I find myself hand-holding all parties and coordinating the inspection(s), any required repairs, the scheduleing of the closing, follow up with the lender - yep another hat!

Then, we go to closing - finally after months and months and countless hours of work with no pay, I bring one hat to closing hopinig that someone will drop something in my hat to not only cover all my unpaid expenses and bring some money to my broker, but also make some money to put food on my table... and purchase another hat.

I don't know of any other professional, licensed business where we don't get paid ANYTHING until the end! And, everything, our continuing education, our car, our gasoline, everything like that is just overhead, that, you guessed it, gets paid by us.

But, it's OK - Once we get your family moved and into another home and I know we did our best to ensure no surprises, I know we did our job well and we earned every penny!

Due Diligence, Simplified

2010-01-31T08:32:00.000-08:00

The Georgia Association of Realtors (GAR), led by legal counsel Seth Weissman of Weissman, Nowack, Curry & Wilco, provides the forms used in the overwhelming majority of real estate transaction in Georgia. In particular, the standard Purchase and Sale Agreement contains a ‘due diligence’ paragraph which is often misunderstood by buyers and sellers alike. In truth, it’s very simple and tends to facilitate a smooth transaction for all parties.

As with most legal documents, the GAR Purchase and Sale Agreement has evolved over time. Prior versions attempted to assign some responsibilities to the buyer (i.e. home inspection, loan acquisition, etc) while assigning others (termite clearance, septic system certification, boundary marking, etc) to the seller. This sometimes resulted in misunderstandings between the parties, with important milestones going unmet or being performed hurriedly, just prior to closing.

The current Purchase and Sale Agreement largely solves this problem by establishing a negotiated ‘due diligence period’. During this period, the buyer accepts responsibility for performing any and all inspections, investigations, surveys, etc, as he/she sees fit. Further, this period is used by the buyer to determine his/her ability to obtain a mortgage loan. During the due diligence period, the buyer can negotiate identified deficiencies with the seller, determine boundaries through a survey, determine the presence of termites or other wood destroying organisms. If the buyer and seller are unable to reach a resolution of these issues, or if the buyer learns that he/she cannot obtain the necessary mortgage loan, the buyer may unilaterally declare the Agreement null and void, and receive full return of previously-tendered earnest money. At the end of the due diligence period, however, this right ends and the seller can reasonably expect that the buyer will now proceed to closing. Should the buyer fail to do so, his/her earnest money will normally be forfeited.

That’s it. No mystery, no smoke-and-mirrors. While there has always been a degree of intimidation contained in Caveat Emptor (Let the buyer beware), this paragraph provides the buyer a reasonable period of time to learn all that he/she can about the property and to then exercise (or not exercise) the unilateral right to withdraw.

Consumers in Georgia who elect to engage the services of a Realtor can be assured that they will navigate the due-diligence period with minimal difficulty, thus resulting in a higher likelihood of closing. And, after all, isn’t that what all parties want?

The story of the share cropper... another Monty-ism

2009-11-24T05:26:00.000-08:00

What the heck does THIS have to do with Real Estate?

Well, recently our MLS has stepped up to the plate and calculates months of inventory. Months of inventory refers to this concept: Let’s say today there are 15 months of inventory. That means that if no more homes come on the market, and if sales stay at their current rate, then it will take 15 months to consume the number of homes on the market. Experts have stated that if months of inventory is 6 months or less, we are in a seller’s market. If months of inventory is 6 months or more we are in buyer’s market.

So, assume that months of inventory is showing as 9 months for this market – where you are about to get a listing. The agent, bless his heart, does everything right, is knowledgeable about the market, does all the necessary research, has a bang up marketing program, builds rapport and the seller says – OK Johnny, I would love to list my house with you but I only want to list it for 2 months...

The agent, understandably, is happy and sad at the same time. Happy that they were well received and got the job and sad because the seller only wants to list it for two months when the study clearly shows that there are 9 months of inventory. Well, if the real estate gods are with the agent – maybe it could sell in 5-6 months, but if the market changes for the worst, you’re looking at 9 months OR MORE!

So enter the share cropper story: Monty says, “Suppose you were a share cropper, you rent the land from the farmer, you buy seed, you tlll the soil, you plant the seed, you water the seed and finally you start to see some little sprouts. You know you’re going to have a harvest cause the seeds are sprouting. Then, out of no where the farmer says ‘OK, thanks for doing all that, I’m going to terminate our relationship – I don’t want a share cropper any more' or 'I’ve got somebody else coming in to finish it off' or 'I’ll do it myself' or whatever.’

Now you say to the seller, wait a minute you are denying be my harvest. We all know that it takes several months for a “crop” to mature so you can reap the harvest and you want me to share crop for 2 months and leave? (really for the house to sell).

You get the idea. A good, solid, professional agent will require enough time time for a harvest and it's only fair for you, the seller, to provide it. After all, would you plant a crop knowing that you'll be unable to conduct the harvest?

It's the Law .... NOT!

2009-11-13T11:17:00.000-08:00

There is no law that says you have to have your septic pumped when you purchase or someone sells.
Here's the thing.

The seller has to disclose (if they use a standard Georgia Association of Realtors contract) when/if his septic was pumped. Based on this information, the buyer decides whether or not to ask for this to be done.

The buyer has a due dilligence (although this is new for the past 2-3 years). Prior to that, the buyer had an inspection period where they could inspect for anything and everything. If a home inspector has reason to believe that there is a problem with a septic system, he might suggest that it be inspected.

If the home was vacant and the buyer gets an FHA loan, then FHA requires a septic letter - but this is so bizarre, because a septic letter just entails someone doing a "drive by" to see if there is any standing water in the yard - well if the house is vacant and no toilets are being used, etc., then, of course there will be no standing water. Duh! (Once I had a house listed and we had the system pumped and were told that there was a problem with the tank. We fixed the problem and gave the receipts for the work and that wasn't acceptable to FHA - we had to still get the "drive by" inspection...)

Some people are of the opinion - if it ain't broke, don't fix it.... So a lot of people don't have their septic systems pumped periodically.

For example, if there are only two people living in a home and they're very careful about not putting grease down the drain, and they don't have a garbage disposal and they use RidX or a similar product routinely, then, they don't have it pumped.

Others are of the opinion that you should do it every 3-5 years....

I've been involved in my share of septic reports/repairs and when you're in the middle of a real estate transaction, some unscrupulous companies will tell you just about anything - because they have you over a barrell and will suggest all these "add on" services that you may not need.

With that said, sometimes, an "unhealthy" tank may have such a high level of "unhealthy bacteria" (and this may not be the right term) - probably more like corrosive acids build up, that it will actually corrode the concrete pipes that come out of the tank to the plumbing system right near the tank. You may also have a crack in either the tank or the lid. These are very serious problems because this will allow ground water to get into the tank...

If your lid doesn't have a clean out, then the septic company has to dig up your yard to remove the lid to perform the service...

Another problem is if there are tree roots growing in the leach field, then you will have to have the leach field re-dug and re-routed or have it pressure washed out depending on the severity.

Lastly, on a sale of a home, if I'm representing the buyer, I will try to get the homeowner to pay for a warranty that includes septic coverage. However, this will have limits on coverage and it is only for year one. So, if a buyer has any reason to suspect a problem, it is worth examining thoroughly and getting a second opinion before continuing with the purchase.

I think the worst one I was involved in is when the buyer did not have the system inspected and was told after she purchased that the septic was not functioning, had to be relocated and had to be a more elaborate, more expensive system.... This happened because the ability of the land to continue to absorbe leaching water had changed due to new development in the area that changed the water run-off capabilities on her land.

Personal opinion - I would buy a home with a septic tank, but I think I would have it pumped every 3-5 years and ensure that the leach field was far from possible encroaching tree roots and that no one would be allowed to drive over it (possibly cracking the lid...).

Roof Repairs - don't overlook this important maintenance item

2009-11-04T05:02:00.000-08:00

This yankee has learned something about roofs from living here in the south. This story starts when a friend of mine (who was born and raised in the south) showed one of my listings and declared that the roof had to be replaced. I said, “What are you talking about, there are no leaks, the shingles aren’t curling it’s just a little stained.” (Staining occurs on a north-facing slope with algae build-up.)

She said, “Yes, but a lot of the granules are washing off.” I said, ”So? That roof is only 12 years old. It has a lot of life left.” She said, “There’s hail damage.” I laughed, “Ha Ha Ha! Where I come from, with New York winters and ice build up, etc., roofs last for ever. Surely a little hail can’t damage a roof...”

Well come to find out, it can! and it did! The heat is brutal and is very hard on roofing materials. The more ventilation you can provide, the cooler your attic will be and therefor, less heat will be trapped and your shingles will not deteriorate as quickly. When shingles are subjected to this brutal heat, they get brittle. When they are hit by hail, the force will cause the granules to wash off and may shatter the shingles. In time, you will have leaks.

So, watch for the tell-tale accumulation of granules in your splash blocks. If there’s been a hail storm in your area, have an expert look at your roof. If there’s damage, you can file a claim with your insurance company. If you don’t know a good roofing company, ask your insurance company to refer someone to you or–contact us. We have dealt with this on numerous occasions both for our own home and our rental properties, but also when helping a seller get their home ready for sale. We can refer you to a good roofing contractor.

But don’t ignore the signs, it will only get worse.

When you have the work done – make sure that the contractor also replaces the boots around any vent stacks – those dry out over time – no sense replacing the roof and not the boots. Also, if you don’t have a ridge vent – spend the extra money and get one – it is the best way to provide good ventilation for your roof. Also, consider getting algae resistant shingles. We did that on our house – time will tell, but our old roof was only 10 years old when it got replaced and the north slope of our roof looked horrible... We’ll see how it looks 5 or 6 years from now. The algae resistant quality comes with a 10 year warranty.

Make sure you know whether or not the workers used toe boards. This is very important. The reason they use toe boards quite simply is to be able to stand on the roof easily while they are working. They take a two by four and nail it through the shingles. I would prefer they didn’t do this – there are other ways to work safely. However, if they do use toe boards, ensure that they calk all the holes with UV resistant calk after they have completed the work. This will ensure that you won’t have any leaks.

Why I need $30,000 more than your suggested price.

2009-09-21T19:26:00.000-07:00

Here we are, 2 years into this crummy market and we still run into people who have an “I Need”. What’s that, you say. Well here’s one of many “Monty-isms” to come. (That’s what a friend of mine calls these little bits of wisdom that come rolling out of my husband’s mouth with ease, eloquently and on time.) When he first started using this analogy, I thought it was silly, but it really works.

When we talk with sellers, many times they are surprised by the affect of the market on their home price. We go and talk to them and we do detailed research before the appointment. ( Many agents will use the PFA (plucked from the air) method to pricing. I can’t do that. Since I have an appraisal background (even though it was for only one year, this experience runs deep) I try to do as thorough a job as possible. I don’t like to lie to people and I don’t like to raise false hopes.

So, we prepare, we research, we drive by solds, we call selling agents, we look at tax records, we make adjustments, we create a detailed presentation and we march off to see the seller. We smile, we talk, we laugh, we look at the house and then.... we sit and talk about the price.

Every now and then, the seller says “we can’t sell for that price!, we need XXXXXX and usually that translates into several thousand dollars above what we gave as our educated opinion!

When the seller(s) announces that they need to sell for much higher than what the market is showing – after all, they need to have money to move, they need to have money to buy furniture for the new house and they need money to go on vacation before they move and many other things.... This is when my husband delivers this classic Monty-ism:

“Suppose you went grocery shopping and filled your basket with all your needs, bread, eggs, cereal and many other things but no milk. As you are waiting in line, the manager looks in your basket and notices that you have not purchased any milk. He stops and asks you about it ‘Madam, I can’t help but notice that you haven’t purchased any milk. ‘ You reply, ‘No, I didn’t buy your milk, it’s $6 a gallon.’

The manager patiently explains ‘Well, you see, we own our own our own dairy farms and herds. We milk our own cows, we process the milk, bottle it and ship it – we have total control. Recently, our herds were decimated by a rare disease and we had to buy all new cows. It took a while for them to start producing. We were down for months and just now got back into operation. We’re trying to recoup our costs and that’s why our milk is priced at $6 a gallon.’

You’ve been nodding patiently, but you reply to the manager ‘Listen, buddy, I’m sorry to hear about your cows and that you NEED to get $6 a gallon, but I can buy it anywhere else in town for $2.50 or less – why would I buy your milk for $6?’”

Moral of the story:

That’s how buyers will evaluate your home. If competing properties are selling for less, they don’t care what you need. Their heart might go out to you and they might feel your pain, they might think you’re a heck of a guy, but they are not going to overpay for your home. They will engage in comparison shopping and will soon determine whether or not they will pursue your home and if so, what price they would offer.

Pricing is not a science. Just remember,

• you want to be competitive in the market
• you want to be realistic
• you don’t want to help sell the house down the street that IS priced right
• If your house is priced too high, buyers will go see your house and others similarly priced. If your home doesn’t deliver the same value as the others in your price range, yours will not sell.

Real Estate, a Team Sport

2009-09-14T04:11:00.000-07:00

So, let’s pretend that you need an oil change and you go to your local Station and say to the proprietor “listen, my car is supposed to have an oil change every 3,000 miles and I want to do that. But, here’s what I propose ... How about you change the oil, check all the fluids and then, in a couple of months, when I’ve determined that my car is OK and the oil change was right, then maybe I’ll pay you....”

That’s not going to happen...

Actually, in writing this, I can’t think of any professions where you can go in, speak to the professional who will render your needed service, and have him/her perform the service without being paid.

Doctors won’t do it, lawyers won’t do it, mechanics won’t do it – but not to fear – Realtors will!

On the front end, we spend our time to thoroughly research and give advice. We don’t mandate a price, we try to educate the seller on the market and together, we determine a price for the home. (That’s another story – they actually do shoot the messenger and don’t hire you – instead they go with the agent that gives them the highest price for the home, rather than the one who can do the best job...)

Once the seller determines that they are happy with the price and they hire you, you then get to put on your “marketing hat”. We begin the time consuming task of marketing the home. We don’t just do the 4 P’s

• put up a sign
• put on a lockbox
• put it in the MLS
• pray

Not that I’m not religious – I do pray – but not for the sale of a home.

The marketing, especially today, is multi-faceted.

We design print advertising in the form of flyers, post cards, letters, e-mails with the proper description of the home. We create a virtual tour. We handle the on-line placements including one or more MLS’, private website, company web site, realtor.com, ajchomes.com, Trulia, online seller’s advantage and more.... At Prudential Georgia Realty, we syndicate our listings to 400 on-line venues.

We handle the phone calls. Sometimes we schedule the showings and act like personal secretaries for the homeowners. Hopefully, this attracts a buyer.

This is when we put our Negotiator hat on. If the buyers are working with an agent, we sometimes do their agent’s job – they may not write the contract properly; we might have to go let their inspector in because he doesn’t have a lock box key (smiling all the way – clearly we shouldn’t have to do this); ditto for the appraiser; we then have to negotiate some more.

Then, we are hopefully moving towards closing, set the appointment, follow up on the loan, arrange for the warranty, notify everyone, turn in the paperwork – and you know what – during this whole process, we did not collect one dime. We are assuming that if everything goes well, we will get paid at closing.

Sometimes, you get to the appointed day, and through no fault of your own, you don’t close. The seller has done everything requested by the buyer, you’ve met all the time lines and the buyer’s loan isn’t approved – not because they lied, not because the loan officer is bad, but because some rule has changed or some minor glitch in the type of loan they’re getting or some processor who dropped the ball and didn’t follow the critical path method to processing the loan (and it’s really scary when they don’t know what this means).

And then, after weeks and months – WE DON’T GET PAID – but that’s OK – just keep smiling and do it again. Go back on the market, buy a truckload of tissues for the buyers and sellers, re-update all the marketing – you get the idea. It’s very difficult. It can be draining - physically, emotionally and financially.

So, the message is we’re a team.

We need the buyers to do what they promise to do – provide your documents to the lender timely; arrange for your inspections; be responsive to your agent; don’t make any large purchases until after closing.

We need the sellers to do what they promise to do – keep the house clean; make the house available for showings; refer all buyers to your agent; evaluate your price periodically and lower as necessary; keep an open mind when an offer is presented and believe/know that there is a happy medium.

Why you can’t always buy a foreclosure for list price.

2009-09-07T05:12:00.000-07:00

Boy oh boy, I wish I had some disposable dollars to invest in some of these deals. Yep, they’re out there.

We’ve seen homes that previously sold for $220,000 sell for $145,000. We’ve seen new construction that was priced at $425,000 and undoubtedly would have sold for that price, sell for $275,000. Wow – there are tons of examples.

Some banks will list the property for what they hope to get. Others list for lower than what they hope to get.

So, here you are Mr. and Mrs. Buyer and you look at this foreclosure. It’s priced at $170,000 and you say – “I can do better”. You offer $120,000 on a house that should sell for $240,000, even in it's distressed state. If you offered list price, you probably won't get it at that price either. Here’s what you may not know.

Very often, some banks will list a home at a price considerably lower than what they hope to get. This serves to attract interest from the buying public... lots of interest. Hopefully (for the seller/bank) all this interest will result in multiple offers. When this occurs, the listing agent is obliged to notify all parties that there are “multiple offers” and invite those who have made the offers to revisit their original offer and come back with their “highest and best” offer.

This is, indeed, nothing more than an auction except in a conventional auction, all the bidders are in one place. Nonetheless, the seller hopes that one or more of the bidders has become emotionally invested in the property and thus submits a “highest and best” offer well in excess of the listing price. And, needless to say that's who ends up with the house.

So, when you're contemplating making an offer, whether it is a foreclosure or not, make sure your agent reviews a CMA (comparative market analysis) of the subdivision with you before you make your offer. This will help you understand what to expect as negotiations proceed.

And, when you are approved for a certain max purchase price, don't try to buy a foreclosure that is listed artificially low, that is at your maximum purchase price. You will be disappointed when that property is "bid up" in price and ends up beyond your reach. And how do you know if it's artificially low? Trust your agent.