Should You Increase Your Offer on a Home? Should You Bid Over the Asking Price of the Home? Highest & Best - Multiple Offers - Oh My!

Housing inventory is at an all time low in the Metro Atlanta area. Six months of inventory or less is a "healthy market." In Metro Atlanta, most counties are running somewhere between a 2-3 months inventory. That says it all!

It's tough to advise clients in this market. We don't want them to feel as though we're being pushy when we tell them to make a strong offer, to increase their offer, or to even overbid the asking price. Rarely has our market seen overbidding, but now it's common. With the lack of inventory and the higher demand of buyers you can bet that if you are interested in a home at least a few other buyers are as well.

There was an article published recently by the KCM Group that we follow. They are trusted real estate advisors and they talk about the issue of low inventory and making offers exactly the way we are experiencing the Atlanta market. Read their article below:

Should Your Buyers Increase Their Offer? Posted: 28 Mar 2013 04:00 AM PDT

Limited inventory and a very strong demand for housing has created an environment where bidding wars are commonplace in today’s real estate market. Homes priced properly are getting multiple offers within a short time of coming to market. This brings about a dilemma for the agent: How should they advise their client who is about to make an offer when other offers will also be presented?

Over the last several years, there wasn’t any pressure on the buyer to adjust their offer for three reasons:

1. There were plenty of homes for sale
2. Prices were falling
3. Mortgage interest rates were falling

The buyer could find another home easily for probably less money and a lower mortgage rate. There was no downside to not ‘upping the ante’. However, in today’s market, things have dramatically changed.

HOUSING INVENTORY

A normal real estate market has between 5-6 months worth of inventory. Over the last several years, the inventory of homes for sale had skyrocketed to 10 months. Most buyers in almost any price range had a multitude of houses to choose from. Today, the national month’s supply of inventory has fallen below five months. In many markets, there is not enough housing inventory to satisfy the current demand.

Conclusion: If the buyer loses the house they are bidding on, there is no guarantee they will find a similar home anytime soon.

HOME PRICES

Because of the limited inventory, home prices are again appreciating. The Case Shiller Pricing Index revealed that house prices rose by 6.8% in 2012. Experts are projecting home prices to increase by 5% to 8% in 2013.

Conclusion: If the buyer doesn’t get this house, there is a good likelihood that a similar home will cost more in the future.

MORTGAGE RATES

The ‘cost’ of a home to a buyer is determined by the price of the house and the expense associated with the financing. Mortgage rates are projected to inch up in 2013. In a recent forecast, the Mortgage Bankers Association predicted that rates could climb as high as 4.3% by the end of the year.

Conclusion: If interest rates do inch up, the ‘cost’ of the next home could be impacted significantly.

Bottom Line

If a buyer truly loves the house they are bidding on, it probably makes sense to raise their bid now instead of waiting for another dream house to appear.

Meth Lab For Sale

For Sale:  Meth Lab.... Any Takers?

 

 

(This photo is via)
By the way, if you're interested, you can really purchase this shirt by visiting the site above...but we don't really recommend buying it nor wearing it. That would make you strange and not fashionable!

 

If you follow national news, you might have heard about the young couple who purchased a Freddie Mac foreclosure in Oregon that turned out to be a formal MeTh LaB! Yikes! They renovated the home, moved in, and became ill (mouth sores, dry mouth and all!). A neighbor advised that they thought the home was a former meth lab and when they purchased a $50 testing kit, it confirmed what the neighbors had told them.

Sooooo -- how can you prevent this from happening to you? A couple of ways:

• Always talk to neighbors if possible. Generally, they'll be happy to talk to you and if they know something you should know, they'll probably tell you!  
• Visit the Drug Enforcement Administration's website to review their "National Clandestine Laboratory Register." This list shows properties in which law enforcement agencies found what they believe to be either meth labs or dumpsites. Even if you're not looking to buy a house, checking out this list is kind of interesting ... you know, because everyone should know where their local crack/meth houses are! :) (Be sure to read the disclaimer at the bottom of the website ... it advises that it's not a complete list. Basically, you can't sue them if you purchase a home and it's not on the list).
  http://www.justice.gov/dea/clan-lab/clan-lab.shtml
• It wouldn't hurt to call your local police department and check the address and maybe even ask them for crime stats for the neighborhood/subdivision/area. 
• If you really have suspicions or are overly paranoid about the possibility of purchasing a meth lab, maybe a $50 kit wouldn't be such a bad idea!

One article that we read advised that the following are signs of a meth lab:
1. Yellow discoloration on walls, drains, sinks, and showers.
2. Blue discoloration on valves of propane tanks and fire extinguishers.
3. Burning in your eyes, itchy throat, a metallic taste in your mouth, or breathing problems when in the home.
4.Strong odors that smell similar to materials often found in a garage, such as solvent and paint thinner, or odors of cat urine or ammonia.

Once you purchase a foreclosure (meth lab or not), generally it's yours to keep. You purchase them as-is, in whatever condition they may be in, and with any and all history that comes with it. Hopefully Freddie Mac will help this couple out of this situation, but they may not.

If you want to check out the story, visit: http://abcnews.go.com/Business/oregon-meth-house-owners-delivers-petition-freddie-mac/story?id=17534927

5 Reasons to Buy a Home Now!

5 Reasons to Buy a Home Now!

Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:

Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don't miss the opportunity to get that 'once-in-a-lifetime' buy.

Price Increases Are on the Horizon

Prices will bounce along the bottom this winter. However, projections call for appreciation after that. Several studies and surveys call for price increases over the next few years starting in 2013. One such survey shows that prices will increase over 10% by 2016.

Rents Are Skyrocketing

Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported that rents this year have actually shot up by 5.4%.

Interest Rates Are at Historic Lows

Federal Reserve Chairman Ben Bernanke has kept interest rates low in an effort to stimulate a lethargic economy. He understands that low rates will help housing and housing is a key to bringing back the economy. As the economy approves, the need to keep rates low will no longer exist. The 30-year-mortgage rate before the financial crisis was 6.57% (August 2007).

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling 'low'. It's time to buy.


Blog Courtesy of KCM Blog - Steve Harney

Is Real Estate Better Off Than 4 Years Ago?

These are national sales averages, however, the story it depicts definitely applies to our market!

BUY YOUR NEXT HOME NOW!  We repeat............BUY YOUR NEXT HOME NOW!

Fabulous Foreclosure Deals!

Incredible Foreclosure Deals!

This market is something crazy! Sometimes I come across deals that absolutely blow my mind! I'm not sure whether to be more suprised by today's market or the crazy market that existed prior to the bubble burst in 2007. Take the house above for example:

355 Vista Creek Drive in Monarch Village (Stockbridge, GA) - it is approximately 2413 square feet with 4 bedrooms and 2 full bathrooms. It has a spacious kitchen with breakfast area, formal dining room, family room, plus a sunroom and a privacy fenced backyard! It previously sold for:

• 2002: $191,900
• 2005: $189,999
• 2007: $197,500

It is now on the market as a Fannie Mae foreclosure for $106,900! Now, I know your first thought would be that it's a foreclosure and probably in horrible condition - but it's not. I've shown the home and from what the naked eye can see, it needs a good cleaning, paint and carpet. Here are some interior photos:

If you're looking for a fabulous foreclosure at a great price, let us help you! This isn't the only great deal out there -- there's plenty. You just need a great agent to help you locate them!

Real Estate in Numbers: 2nd Quarter - Butts County, Clayton County, Fayette County, Henry County


Pulling statistics from the MLS quarterly is one of my favorite things to do! Call me a real estate geek, but I get excited to see where the market is heading! If you have questions about your local market or a specific subdivision/neighborhood/community, please contact us and we'll be happy to provide a detailed market analysis and other market data!

Are You a Buyer Looking to Purchase a Short Sale?

It seems that there is a significant amount of confusion when it comes to purchasing a short sale. There are many misconceptions when it comes to this type of transaction, so below I have provided some information to potential buyers of short sales. If you are looking to purchase a short sale, understand that it is not the same as a normal sale and the approach is very different. There could be several parties involved and issues that are unknown to the buyer and buyer's agent that can affect the transaction. If you are looking to purchase a short sale here is some helpful information.


1. On average, to get a short sale approval, it can take 60-90 days.
There could be mortgage insurance and an end investor on the loan as well as the servicer, which means it has to go through three different processes. Bank of America could be the servicer on the loan but they do not actually own the loan, so, the short sale has to pass their guidelines, then go to the mortgage insurer if there is one, then to the end investor like Fannie Mae and Freddie Mac. If you are a buyer and can't wait at least 60-90 days for an approval and then another 30 days to go to closing, then you need to look at other houses. The worst thing you can do is tie up a house that is in a short sale with no intention of being patient while waiting for a short sale approval. Approvals can come sooner than 60 days, but industry standard is at least 60 days to get an approval or denial.

2. There is a general assumption that you can purchase a short sale for 40-50% under its listed price. In a short sale the bank comes out and does a valuation of the property and will expect a slight discount, but will not accept a huge amount under the market value.
Hopefully, if the agent who is handling the sale is experienced, they will have already gotten an approved list price from the bank by the time you are interested in making an offer. The bank will usually be willing to negotiate on that price, but will not, in almost every case, take 40-50% off of that price. To that point, you may be able to get a reasonable deal on a short sale, though it will not be, in most cases, as much of a deal as you may be able to get on an REO (foreclosed property). Also to that point, most short sales will be in better condition than an REO. When you look at the potential repairs a comparable REO needs and the time and expense it can take to do those improvements vs. a short sale being sold at a slight market discount with improvements already made, the investment could even out. There are REO properties that can be picked up for a huge discount, but require massive repairs that a comparable short sale may not require.

3. Short sales are a very difficult process and it takes a qualified person to handle this type of transaction.
With this type of transaction it takes a very experienced agent on the listing side as well as the buying side. Make sure before you move forward on the transaction that the listing agent has ample experience dealing with these types of transactions, or you could be tied up in a contract for months that never goes to settlement. There are several different types of short sale processes and each bank's process is somewhat different; it takes a professional who has had experience with all of these different types of short sales to help facilitate a successful transaction.

4. In most short sale transactions the properties are sold "as-is" and no repairs will be made.
Although there are some exceptions to this rule, speaking in general, short sales are sold "as-is" and no repairs will be made even if they are found during a home inspection. In most short sale transactions the bank will require both the buyer and the seller to sign an addendum that states the property is being sold "As-is" and no repairs will be made.

These are just a few short pointers for buyers who are looking to purchase a short sale as they are a reality in every market, and if you have the patience you may be able to get the home you are looking for at a discount!

Source: KCM Blog - Steve Harney 

6 Don't After You Apply for a Mortgage

I learned a long time ago that "common sense is NOT common practice“. This is especially the case during the emotional time that surrounds buying a home, when people tend to do some non-commonsensical things. Here are a few that I’ve seen over the years that have delayed (and even killed) deals:


1. Don't deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Small, explainable deposits are fine, but getting $10,000 from your parents as a gift in cash is not. Discuss the proper way to track your assets with your loan officer.

2. Don't make any large purchases like a new car or a bunch of new furniture. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios…higher ratios make for riskier loans…and sometimes qualified borrowers are no longer qualifying.

3. Don't co-sign other loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios, as well. Even if you swear you won't be making the payments, the lender will be counting the payment against you.

4. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Frankly, before you even transfer money between accounts, talk to your loan officer.5.Don't apply for new credit. It doesn't matter whether it's a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

6. Don't close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more approvable. Wrong. A major component of your score is your length and depth credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.

Yes.....we've had it happen. A first time home buyer was so excited about her first time purchase that she went out and bought all new appliances for the kitchen on her credit card BEFORE the closing took place. When the lender pulled her credit again before closing and saw that there was now another $3000 in debt she no longer qualified. Don't let this be you.

The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. Any blip in income, assets, or credit should be reviewed and executed in a way to keep your application in the most positive light.




 
KCM Blog - Steve Harney

Where Did All of the Houses Go!?!?

What happened to all of the houses for sale?! Just a few months ago we had more properties than we could possibly sell. Now, we're scrambling to find good inventory for our buyers who are anxious to find a home and tired of looking at the leftovers - you know, the stale inventory... the properties that are still available for a reason (overpriced, horrible condition, etc).

When a good property hits the market it seems as if it instantly goes to a multiple offer situation/"highest and best." In the past two months, I've had one buyer who has participated in three multiple offer situations, offered much more than the asking price ($15k, $30k, etc) and still wasn't the best offer. The competition is crazy out there right now and can be very discouraging for buyers.

Realtor.com just released statistics that show that the Atlanta market is #8 in the country in terms of metro markets that have experienced the greatest drop in "for sale" inventory and boy does it show! Here's the complete list:

1. Oakland, CA
2. Bakersfield, CA
3. Phoenix-Mesa, AZ
4. Fresno, CA
5. Miami, FL
6. Fort Lauderdale, FL
7. Seattle-Bellevue-Everett, WA
8. Atlanta, GA (-39.62% decline)
9. Orlando, FL
10. Portland-Vancouver, OR-WA

So what does this mean? Hopefully it's a positive sign for an improving market. If you're thinking of selling your property, now might just be the time. Buyer's have less to choose from so if you get your house in tip-top shape and price it aggressively, chances are, you're going to be successful in selling it! If you're a buyer, it means that you better be aggressive with your home search. If a house hits the market and you think you might be interested, don't wait a week to go check it out. By the time you go view it, it will likely be under contract! If you fall in love with a house that just hit the market, there's probably 4 other buyers who love it just as much. If you'd be heartbroken if you missed it, then it's probably not the time to lowball!

If you're looking to buy or sell in this crazy market, please call or email us! We would love help you!

How much money do I need to buy a house?

If you're thinking of buying a house, you may have taken the first step which is to get prequalified for a mortgage; however, there are some other factors to consider ... like how much money/cash you may need upfront. From contract to close, there are a few numbers you should know about and be prepared for:

• Down payment: ...the obvious! Depending on what type of loan you're pursuing, you may need a down payment anywhere from zero (yes, you read that right - think USDA loan), $100 (FHA loan on a HUD property), 3.5% of the purchase price (FHA loan) to 5-20+% of the purchase price for conventional products. This is due at closing but typically must be available in your account a few days/weeks prior to closing so that the lender can confirm that you have the cash needed to close. The good news is that some loan products (FHA) allow gift funds but check with your lender for the specific requirements on this.
• Earnest Money:  In the local market, earnest money is typically anywhere from $500-$1000 for majority of properties but can be higher depending on the purchase price. Typically the rule of thumb is "the higher the purchase price, the higher the earnest money". This is totally negotiable and can vary greatly. What is earnest money? Earnest money is a deposit to show that you're serious about buying the house (if there was no such thing as earnest money and buyers didn't have any monetary interest, you can imagine that contracts would be broken all the time!). The good news is that earnest money is your money and it comes back to you at closing in the form of a credit towards your closing costs, down payment, or credit to the sales price so long as you follow the terms of the contract and close as scheduled. If you default or terminate after due diligence/inspection periods/contingency periods, etc, then you risk losing your earnest money. In some unique situations, it can be negotiated that earnest money is non-refundable or is paid to the seller - be sure you understand your contract! Prepare to write an earnest money check when you write the offer, although sometimes it can be negotiated to be paid upon a binding agreement or within so many days of the binding agreement date.
• Closing Costs & Prepaids: If you're obtaining financing for the purchase of a property, you will incur several fees/costs/etc. that are collectively known as "closing costs" and "prepaids." These fees include things such as the lender's origination fee, attorney's fees, credit report fees, initial deposits into escrow to cover hazard insurance and taxes, etc. In the current market, it is typical that the seller contribute towards buyer's closing costs; however, this contribution doesn't always cover 100% of the costs. It just depends on how the deal is negotiated. When shopping for a mortgage, be sure that the lender provides an estimate of how much cash is needed to close. This should include your down payment, closing costs, and prepaids. Some lenders try to sneak by by just telling the client about the down payment amount and never mentioning the closing costs amount upfront. Be sure you know how much you will need to close the deal so that you can prepare ahead of time!
• Home Inspection: While a home inspection is optional, it is HIGHLY (notice the capitalization, bold, italics, underline ... you get how we feel about this, right?) recommended. Home inspections in this area typically run anywhere from $250-450 depending on the size of the house and what all the inspection includes. Some inspectors can also do termite, radon, mold inspections, etc. Either way, you'll want to budget for this ahead of time. You'll need to pay for the home inspection at the time of the service - just depends on when you have your home inspection, but be sure to do it during your inspection/due diligence period.
• Appraisal: Majority of lenders these days collect this fee upon contracting on a property while others may collect it at closing as part of the closing costs. Go ahead and budget for this as an upfront fee. Typically it's around $400-500 in this area.

These are the main items that you will need money for; however, there are always optional items like home warranties. Many first time home buyers have limitied cash reserves and don't know exactly what to expect when it comes to purchasing a home. You may be prequalified to purchase a home, but be sure that you have the funds to move forward if you're considering making an offer!

...now, to cover our rear ends, please know that the information above is specific to our location (perhaps in many areas, earnest money needed is much more!). Every situation is different and should be discussed with the Realtor or lender that you are working with. Some of this information is subject to change ... like the $100 down payment that HUD offers buyers pursuing an FHA loan - this is a current promotion that could end at anytime. Questions? please call or email us!

Buying vs. Renting? Which is More Affordable?

It's More Affordable to Buy in 98% of Major Markets!!!

Last week, Trulia released their Winter 2012 Rent vs. Buy Index. In the index, they report that:

"After years of home price declines and tightening rental markets, home ownership is now more affordable than renting in all but two of the 100 largest metros – even in expensive real estate markets such as New York, Los Angeles and Boston."

The two metros where renting was more affordable were Honolulu and San Francisco. However, Trulia explains that, even in these markets, buying a home:

"...might make sense for people who plan to stay in their next home for at least five years and can benefit from the mortgage-interest tax deduction."

This rent/buy ratio favors buying more so then at almost any time in history. In a recent article, Forbes Magazine quotes Jed Kolko, Trulia's chief economist:

"Certainly prices have continued to fall nationally, but rents have been rising so this would be the lowest price-to-rent ratio that we've seen."

Bottom Line

It might be time to talk to talk to us about buying a home! We realize that the economy has been tough in the last few years and that many people have had mishaps with their credit, etc. There are some loans for people with less than perfect credit, but you may have to put more money down (it's all based on circumstances, etc). If you need help cleaning up your credit, we have a wonderful connection with a lender and credit restoration company that can work with you over the next year or two to get you ready to buy.

YOU DON'T WANT TO MISS THIS OPPORTUNITY TO BUY A HOME! All good things must come to an end and we don't want to see anyone miss the boat on the best time to buy a home in history (our humble opinion)!


Source: KCM Blog - Steve Harney

Four Foreclosure Myths for 2012

Carl Medford, a Realtor with Prudential California Realty, recently wrote a blog addressing myths and rumors about foreclosures and bank owned properties. I love what he had to say and thought it was great information to pass along. Here are four myths regarding foreclosures:



1. You can go directly to a bank to buy a foreclosure.

Every few weeks I’m asked how to buy foreclosures direct from a bank. Someone knows a friend being foreclosed on and they want to step in and grab the house before it hits the market. Don’t we all? In reality, banks have a simple system – they first offer properties on the courthouse steps. The rest they assign to asset mangers who then hire local real estate agents to put them on the market along with all the other homes. Want an REO? Pay cash at the courthouse steps or get in line witheveryone else when they hit the local MLS (Multiple Listing Service).

2. You can get a killer deal by submitting lowball offers on foreclosures.

You would think this myth would be dead by now. Unfortunately, like Elvis sightings, it just won’t go away. Here’s the truth: Banks want REOs sold in 30 days or less, so they typically appear on the market priced slightly under comparable properties. If the property doesn’t sell quickly, the bank will lower the price after about 30 days. Lowball offers are ignored and are, quite frankly, a waste of everyone’s time and effort. You might get a deal by offering a lower price on a foreclosure that’s been sitting on the market for more than 90 days, but remember that there are good reasons it’s gone unsold for so long. And even if you have cash, your lowball offer won’t be accepted —seriously.

3. You can’t use foreclosures when doing an appraisal.

Or short sales, for that matter. That is no longer true. In fact, in many neighborhoods, that’s all that’s there. Therefore, foreclosed or distressed sales represent the actual value of homes in the area and HAVE to be used to appraise other properties. Don’t like it? Get over it. Times have changed and the ways neighborhoods are valued have changed as well.

4. Foreclosures are only affecting the bottom end of the market.

This used to be true. However, while foreclosure rates on the lower end of the market have actually decreased, they’re actually increasing on the upper end. According to Daren Blomquist, vice president of RealtyTrac, the market share of foreclosed homes under $1 million is shrinking, but those among properties valued over $1 million are rising – up 115% since 2007. And foreclosures on properties valued upwards of $2 million have increased by 273%. While some well-known jet-setters have melted down and lost everything, others are choosing to strategically default. They see it like liquidating a poorly performing portfolio – they have enough resources to cut their losses and move on. Historically, banks have been reticent to foreclose high-end homes and absorb a large loss, but defaulters are now forcing their hands and mansion foreclosure rates are moving on up.

Myths control behavior, and this has never been truer than in the housing market. Savvy agents will work hard to educate their clients, debunk myths, explain market trends, educate with solid facts – and actually close transactions

Homestead Exemption Georgia - Henry, Coweta, Fayette, Clayton

Homestead Exemption Crunch Time!

If you purchased a home last year and are eligible for homestead exemption but haven't filed as of yet, you better get busy!!! The deadline for most of the southern crescent counties is April 1st! Homestead is a valuable exemption that may reduce the amount of property taxes that you owe provided that you owned and occupied the property as a primary residence as of January 1st. Here are some helpful links and information that you may want to view:

• Clayton County Homestead Exemption
• 121 S McDonough Street, Jonesboro, GA 30236  770-477-3311
• Coweta County Homestead Exemption
• 22 East Broad Street, Newnan, GA 30265  770-254-2670
• Fayette County Homestead Exemption
• 140 Stonewall Ave West, Fayetteville, GA 30214  770-461-3652
• Henry County Homestead Exemption
• 140 Henry Pkwy, McDonough, GA 30253  770-288-8180
• 164 Burke Street, Stockbridge, GA 30281   770-288-7999

When applying for homestead you will need a copy of your warranty deed that was mailed to you after closing by the attorney's office. If you do not have this and need it to file, please let us know and we'll be happy to obtain a copy for you! It is highly recommended that you call the local tax office prior to filing to make sure that you have everything that you need as each county may have different procedures and/or requirements.

If you miss the deadline, don't fret. You can actually file for homestead at any point during the calendar year but it won't applied until the following year. Have questions? Please don't hesitate to call or email us (but remember, we're not CPAs or Attorneys!)

Warning!!! If the homestead exemption was applied to your property when you purchased it (due to the previous owner's filing), it will vanish if you don't apply for yourself. This will then cause the property taxes to increase!! Once you apply for homestead, it applies for the lifetime that you own the property so long as the exemption exists! Don't miss out -- file asap!

Warren Buffet Says It's Time to Buy Real Estate!

Warren Buffett appeared live on CNBC’s Squawk Box this week. During the interview, he was asked about the current real estate market and whether he felt now was the time to buy. His response was rather emphatic and has been used as a headline in hundreds of articles since the interview:


“If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”

However, throughout the interview, he addressed the market from a few angles. Here is what he said:

Why invest in real estate now?

“It’s a way, in effect, to short the dollar because you can take a 30-year mortgage and if it turns out your interest rate’s too high, next week you refinance lower. And if it turns out it’s too low, the other guy’s stuck with it for 30 years. So it’s a very attractive asset class now.”

Is buying your own home better than investing in stocks right now?

“If I knew where I was going to want to live the next five or 10 years I would buy a home and I’d finance it with a 30-year mortgage… It’s a terrific deal.”

Should we buy multiple houses?

“If I was an investor that was a handy type and I could buy a couple of them at distressed prices and find renters, I think it’s a leveraged way of owning a very cheap asset now and I think that’s probably as an attractive an investment as you can make now.”

Over the last couple of months, there have been more and more financial analysts coming to the same conclusion: It’s time to buy real estate.

Convinced? Ready to Buy? From first homes, move up homes, or investment properties....we've got you covered! Give us a call or shoot us an email.

Source: KCM Blog - Steve Harney

9 Things to Ask Before Hiring a Real Estate Agent

I was browsing the real estate section of thenest.com this evening and came across a great list of questions that you should ask a real estate agent before hiring them. As I read the questions, I thought "you know... this would be a great blog post." Sooo - here's the complete list of the questions along with our answers:

  
Whether you're buying or selling, there are a few key questions to ask an agent before saying, "You're hired." Before hiring a real estate agent, make sure to ask these questions:

1. How long have you been in the real estate business?
How long has this person been on the job (look for upward of a year), and were they full or part time? While experience is no guarantee of skill, real estate, like many other professions, is mostly learned on the job.
Answer: Melissa has been a licensed Realtor since 2004 (8 years) and Rebekah since 2008 (4 years); however, we have much more experience than just our "licensed years." Prior to becoming a Realtor, Melissa worked for one of Georgia's top Realtors (since she was 15!) and Rebekah worked in the corporate office of a large real estate firm as a relocation specialist. Growing up, our mother was a successful Realtor and still works in the industry. Oh, and our aunt is a Realtor as well! Let's just say, we go way back when it comes to real estate.

2. Are you a member of the National Association of Realtors?
This organization requires certain standards from its members, and you don't want to worry about having a shady agent.
Answer: Yes, we are! We're members of the National Associaton of Realtors, Georgia Association of Realtors and the Metro South Association of Realtors. In this market, many real estate agents have elected not to continue their membership with this great organization (in effort to avoid the membership fees involved). We are proud to say we're members!

3. Are you a member of MLS?
This is the Multiple Listing Service, which gives agents access to houses represented by all agencies -- not just their own. For sellers, this means your home will be posted on the list as well, which means more people will see it.
Answer: Yes, we're members of both Georgia Multiple Listing Service (GA MLS) and First Multiple Listing Service (FMLS). This is extremely important in the Metro Atlanta area as many agents that serve the southern crescent of Atlanta are only members of GA MLS. What's the difference? The Southside is pretty much ruled by GA MLS and Atlanta upwards is FMLS driven; however, when marketing a home, it's extremely important to have as much exposure as possible.

4. Do you work on weekends? Since this is when most open houses take place, the answer to this should be yes.
Answer: Do we work weekends? Are you kidding me? Of course we do! We understand that majority of our clients work normal schedules which means they're only available on evenings and weekends. Therefore, it's important that we're available during evening hours and weekends. It's true ... some agents don't work weekends and some don't work evenings. I always love agent voicemails that say "if you're calling after 6:30p, your call will be returned the following buiness day." -- you know... sorry, client Smith, you're not important after 6:30p - your question will have to wait.

5. Can you outline how you would represent us?
The answer should include your housing inspections, following through with your mortgage approval process, and being present at your closing.
Answer: When we represent a buyer, we hold their hands through the entire process. We assist with the pre-qualification process with the lender if necessary, show properties, assist with research/questions, write offers, negotiate, draft contracts, negotiate more if needed, assist with scheduling home inspections, negotiate repairs if necessary, keep in constant contact with your mortgage lender to make sure the process is going smoothly on the back end, schedule closing, communicate with the attorneys, attend closing and the best part of all ... we're still there to assist in any way needed after closing.

6. Will you show me houses listed by other companies?
Double-check that the agent isn't partial to his or her own realty group.
Answer: Absolutely! As licensed Realtors, we're allowed to show any home listed in MLS, no matter who has it listed -- Coldwell Banker, Keller Williams, ERA, Century 21, Solid Source, No Name Realty, etc, etc. We can even show you for sale by owner properties so long as the owner is willing to allow us into their home for showings! If you're interested in a house, we're going to show it to you!

7. Are you familiar with our area?
You'll want the agent to know the ins and outs of your community.
Answer: Well, since this is generic, I'm not exactly sure where your area is; however, I can say that we never represent buyers in areas that we don't feel that we know well. If you ask us how far the closest grocery store is and we don't even know where any grocery stores are in the area - we probably don't need to be assisting you in that area. We would rather you work with a true professional who knows the ins and outs! In this market, some agents are craving a sale so bad, they'll drive 2 hours away to areas they don't know in hopes of selling a house....

8. How many homes have you sold?
If you're in the market to sell, find out how many homes they successfully sold last year. While those numbers may be low due to market activity over the past six months, it’s a good way to compare candidates.
Answer: We sold 50+ properties in 2011 and to be honest, I couldn't give you an overall total because we don't keep a running tally of ALL of our closings. The numbers aren't important to us, our clients and current transactions are! We could spend time bragging on our recent sales, awards received, etc. but we don't. We don't have time to go back and compile it all; however, it would be interesting to see and we certainly have a proven track records! 

9. What's your business style?
Do you want a broker who calls you once a week or emails daily? Find out how the agent will keep you updated on prospects and inform them about your preferences.
Answer: We're as aggressive and assertive as you want us to be. If you're just beginning to explore the possibility of buying/selling a home and contact us but you're not quite ready, don't worry. We're not going to stalk you with phone calls and emails; however, if you call us and you say you're ready to go, then we are too and we're going to be there every step of the way! We communicate in whatever way is best for you -- phone, email, text, in person, and we've even Skyped with some of our clients!

 Have any other questions? We'll be happy to answer them! We realize that there are a gazillion agents out there and you don't know us from Adam. So if you have other questions, please don't hesitate to call or email!

Why Real Estate Deals Fall Apart

I have seen estimates stating that 29% of deals that go to contract and require a mortgage, don't close. That number boggles my mind. It means that even after a buyer and seller come to terms on a sale (not an easy feat these days), 3 out of 10 transactions fall apart. What are some of the more common reasons?

■ Appraisal issues – In many markets, we are still seeing declining values. Appraisers are in a difficult position, and with so many transactions (including seller's concessions to assist buyers with closing costs) values aren't always coming in at sales prices.

■ Short Sales not being approved by the current lender – With so many sellers owing more than their home is worth, buyers’ proposals need to be sanctioned by the lender (who will be receiving less than they are owed). Some of the offers are too low, but often, the lender isn't local and they really don't know what the property is worth today.

■ Bad pre-approvals from the loan officer – Today, loan officers who are not reviewing tax returns, analyzing bank statements, and asking for detailed explanations and documentation on credit blemishes, are truly hurting the customers. Issuing pre-approvals based on the representations of the customer is reckless and a cause for dismay later.

■ A lack of transparency – Whether it's a seller or agent not disclosing property issues, or a buyer trying to sneak things by an underwriter, too many people think they can cut corners. That is not the world we live in anymore. Everything is uncovered. Being honest in the beginning, gives you the best chance to overcome obstacles.

It is clear by the numbers that closing loans can be more difficult today. However, with proper planning and integrity, many of the challenges can be dealt with early and successfully. Agents documenting values of the homes, loan officers doing complete reviews of the loan profile up-front, and everyone telling the truth helps get deals to a successful conclusion and avoids horror stories.

It helps to have a good agent, or two of them, for that matter (HINT HINT)! Give us a call or send us an email. We have a 95% contract to close ratio!


Article from KCM Blog, Steve Harney