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How Are You? What Does Your Answer Say About Your Attitude?

"How are you?"

A question we all ask dozens of times each day.  For me, it had become such a conversation opener, sometimes it was posed as a rhetorical question.  I always want someone to say, "Great; Couldn't be better!", and then we can move on to the real conversation.  Partly because I always want everyone to be "Great!" when around me, and partly because I really don't expect anyone to sit down and tell me all of the worrisome items spinning around in their head simply because I asked!

Over the past two years, the answer I wanted has largely not been the answer I received.  Everyone would answer the question instead with worries about the economy.  "Business has been so bad."; "I'm not sure we're going to make it much longer."; "Julie - You've got to get my property sold or I just don't know what we're going to do."; etc.  Your basic nightmare answers to the "How are you" question.

I care more about people's feelings than I should (a little fault of mine), and for a few months - it made me sad.  Then, for a while, I convinced myself it was refreshing to have people answering the question honestly rather than leaving anything to the imagination.  Plus, the recession did seem to bring everyone in our Country together in a sense.  Everyone was struggling, so everyone actually worried about other people's concerns - if for no other reason than they were a reflection of their own.

However, recently, when I receive that answer it makes me think that person is stuck in a rut and not working very hard to get out of it.  I know, that sounds horrible - even to myself, but we the people of the US seem in general to be trying hard to pull ourselves up, think outside our comfort zones, and make the current environment work for us . . . which is, in my opinion, the American way.  

Many of us spent the last 12-18 months lamenting and comforting our fellow man, which is good, because maybe now everyone understands that each of our individual success is dependant upon our neighbor's success as well.  For instance, if you own a retail business, you understand what happens to business when 20% of your customers become unemployed and the others have to start counting pennies.  Now, you want ALL people in your community to triumph over hard times, because their achievements will result in increased business in your store, thus guaranteeing your own success.

Before the "recession", how many of those same business owners didn't spend time worrying about the few people they passed who were down on their luck?  How many looked at that person and thought, "You just aren't trying hard enough.  If you feel so bad, quit whining and go out and make it happen for yourself."   Afterwards, everyone gained a greater understanding of how difficult things can be when the world seems to keep knocking you down no matter how hard you try; perhaps because they were getting knocked down personally, or so many of their hard-working neighbors were that they came to realize we are all joined together to form this Union and it works best if we all concentrate on making it a better place For Us ALL.

I have always believed a big portion of success is thinking positively.  When one thinks negatively, speaks of negative things, and everyone they talk to has negative things to say, the negative energy works to tire them out, steal their hope, and prevent them from trying to work to make things better.  Eventually, that person can forget entirely how to be "Great!"

On the other hand, when you ask someone how they are doing and they exude positive energy right away, it makes you feel good too (or, at least makes you jealous enough to work a bit harder to steal some of their thunder!).  Regardless of the motivation - positive answers provide inspiration! 

Am I saying, if we all collectively began faking enthusiasm and hide our negative feelings that the ills of the world would suddenly be fixed?  No.  I may be an idealist, but I am not completely out to lunch!  However, . . . the eternal optimist in me thinks it would definitely help our collective psychology to spend more time concentrating and sharing the positives in our daily lives.  And, winning the mind is the hardest portion of the battle.

The real estate market has been moving.  More of my retail and restaurant clients & tenants see business picking up.  The Dow is up.  Unemployment levels are down.  Fewer houses are actually going  to foreclosure.  Even the Government's bail outs are starting to help real people (aka: Main Street) and not just the uber rich insurance company CEOs and banks. 

Obviously many of us are trying to turn that frown upside down and find the silver lining in the clouds.  The answer to the "How are you?" question is finally tipping back towards "Doin' Well".  But, not everyone has gotten on board yet.  Don't we all agree that now it is time for us ALL to step up and work to change the way we see the world, thus the changing answers we've been giving and receiving to the "How Are You?" question - if only for the spirit of positive reinforcement?

By The Way: All of this craziness has produced the most opportunistic market I've ever seen.  Now is still a great time to buy!  Call me today; let's talk about all of the great things happening in Northeast Georgia!

MSNBC.Com boasts: New Home Sales See Biggest Jump in 47 Years!

Alan Zibel of MSNBC.com recently posted this, and I thought it was interesting:

Sales of new homes surged 27 percent last month, bouncing off the previous month's record low and blowing past expectations as government incentives and better weather boosted sales.

The Commerce Department said Friday that new-home sales rose in March to a seasonally adjusted annual sales pace of 411,000.  It was the strongest month since last July and the biggest monthly increase in 47 years.

The median sales price was $214,000, up more than 4 percent from a year earlier, but down more than 3 percent from February.

The new-homes sales report reflects signed contracts to purchase homes rather than completed sales and thus gives economists a feel for how many buyers were out shopping for new homes in a given month.

It is likely capturing consumers who are trying to qualify for federal tax credits that will expire today.  The government is offering an $8,000 credit for first-time buyers and $6,500 for current homeowners who buy and move into another property.

To qualify, buyers must have a signed contract complete by the end of the week and must complete the transaction by the end of June.

"Everyone's just trying to sign on the dotted line," said Jennifer Lee, an economists with BMO Capital Markets. 

Nearly 1.8 million households have used the credit at a cost of $12.6 billion, according to the Internal Revenue Service.

"These robust numbers say the credit is working," said David Crowe, chief economist at the National Association of Home Builders.  He forecasts sales will rise through April, weaken modestly, and then remain stable through the rest of the year.

The rise in a new-home sales was seen nationwide.  Sales grew a whopping 44 percent in the South and 36 percent in the Northeast.  They also rose about 6 percent in the West and 3 percent in the Midwest.

The number of new homes up for sale in March fell 2 percent to 228,000.  At the current sales pace, it would take nearly 7 months to exhaust that supply.

Still, new-home sales are down 70 percent from the peak in July 2005, and some analysts predict they will sink back to the winter's dismal levels after the tax credit runs out.

"I expect we'll see a very sharp drop back," possibly to new record lows, said Paul Ashworth, Senior U.S. economist with Capital Economics.

- So, I want to talk about what all of this means:  First of all, on a personal basis, I have contracted with several first time home buyers this month, so I agree that the credit was helping tremendously, but I've also contracted with several people buying lake homes.  It seems that overall, people are beginning to have more faith in the economy again.  We have a few manufacturing plants in Hartwell and the surrounding areas which are also hiring large numbers of people this spring, which is helping with middle range home purchases and greatly assisting with my leasing services.    Now that the home buyer's credit is disappearing, I do expect to see some of the lower end home sales go more slowly (durnnit!), but I don't think sales will die off completely as some predict, since many of the spring sales are still relocation or recreational second home directed and not first time home buyer driven.  Not to mention, your real estate buying dollar still goes a longer way right now and interest rates are still great!

One thing I look forward to seeing is how the government is now going to produce a resurgence in commercial and investment purchases.  I have many great income producing investment properties listed, but they unfortunately are selling slowly right now because lenders have not yet loosened up on commercial lending.  Right now, most buyers have to put down almost 40% to buy investment properties and then the interest rates are not super.  That being said, these investment properties are priced at very affordable rates - the days of 8% CAP rates are long gone for Sellers, and we're seeing more 12%+ CAP rates.  The good news is leasing has been strong both commercially and residentially, so there are more investment properties actually producing income now.  We may have to see a surge in Seller Financing to move these properties before the commercial property ladder begins climbing again. 

Some of my clients and I have been doing lease-purchases with our properties to move them.  It is complicated, takes an agent who knows what she is doing to set up correctly, a seller who is in a position to "be the bank" for a little while, and everyone has to wait to finally get to closing, but in general I'll take a good sized downpayment and then allow the Buyer to pay over the next year with a good portion of the "rent" going towards their earnest money - thus helping them get to the required downpayment over a year's time.  So far, I've only had it fail once, but the client still made over $18k on the venture and still has the property to sell, thus no one considered it a "failure"! 

    If it is something you think may work for you, call me today and let's discuss how to get you in the game.  Hopefully lenders will wake up in the mean-time and get back on board with some investment lending options.  No One wants the banks to fall back into old habits which have gotten them into trouble, but the trouble-causing habits were lending more than the property was worth to people who weren't qualified rather than simply lending money on investment properties.  If you have an investor with 15 to 20% to put down, good credit, and is buying the property at a good price, that's a good risk in my opinion! 

In the meantime, we just keep on working.  It is the American way: when times get tough, we roll up our shirt sleeves and work to figure out how to convert things to our favor!  At least things have been interesting through all of this; I've gotten a good bit of practice thinking outside the box.  Give me a call if you are ready for someone who can help you find interesting ways to work towards the sell of your property, and let's see what we can make happen together!

What's Going on in Hartwell this Week?

Hello All! 

Hartwell is really happening!  Lake properties are moving, first time home buyers - and now people hoping to sell their current home and buy a new one - are rushing to get closed in time to receive the Federal Tax Credits available, and Realtors all over town are busy, busy, busy!

Since October 16th, 18 more properties in Hart County have gone under contract or closed from within the MLS system.  Others may have sold via owner or via a realty firm unaffiliated with MLS which are not reported herein.  **Did you know?: 93% of all sales in Georgia are on MLS - that much more reason for Sellers to use a Great Realtor to market your home for sale, or for Buyers to view the best of all available properties through a professional Realtor!* 

The average sales price was $240,508.  The average number of days on the market is 158 days.

The properties which sold or are under contract are as follows:

• 1719 Lakeview - 5 bd / 3.5 ba lake home.  Sold for $530,000
• 9 Sidney Drive - 4 bd / 2.5 ba lake home.  Sold for $500,000
• 784 Lightwood Lane - 3 bd / 2.5 ba lake home.  Sold for $410,000
• 100 Heathwood -  4 bd / 2 ba home.  Sold for $261,100
• 97 Cabin Lane - 3 bd / 2 ba lake home.  Sold for $257,500
• 151 Alderman Lane - 2 bd / 2 ba.  Sold for $235,000.
• 1 Old Andersville Rd - Nice, non-dockable lake Lot.  Sold for $180,000
• 5187 Royston Highway - 3 bd / 3 ba doublewide on multiple acres.  Sold for $175,000
• 100 Relim Lane - 3 bd / 2 ba in Peek Estates.  Sold for $115,000
• 52 Wisteria Cove - 3 bd / 2 ba.  Sold for $112,500
• 48 Lewis Road - 3 bd / 1 ba.  Sold for $75,000
• 278 Knotts Landing - 3 bd / 2 ba doublewide.  Sold for $35,000
• 0 Willis Road - 3 bd / 2 ba.  Listed for $135,900; I'll let you know what it sells for after closing.
• 101 Oak Hill Road - 4 bd / 2 ba.  Listed for $119,000; I'll let you know what it sells for after closing.
• 2071 Bowersville Highway - 3 bd / 2 ba.  Listed for $79,900; I'll let you know what it sells for after closing.
• 133 Adams Place Drive - 3 bd / 2 ba.  Listed for $76,000; I'll let you know what it sells for after closing.
• 75 Cunningham Drive - 3 bd / 1 ba.  Listed for $69,900; I'll let you know what it sells for after closing.
• 837 H. N. Ayers Road - 3 bd / 2 ba.  Listed for $49,900; I'll let you know what it sells for after closing.

BTW: someone got some FABULOUS DEALS on these properties.  It is risky to wait once you've found the perfect house at an affordable price.  The Federal Home Buyers Tax Credits have been extended and expanded to include people who are selling a current home and buying a new one; so there are many more reasons to buy now.  If you are looking for a GREAT Realtor - come talk to Julie Haley today!!!  I sell and lease properties from Lake Hartwell to the Classic City.

What's Happening in the Hartwell Real Estate Market This Week?

As promised, I'm making updates to the blog!  Hope you've noticed my new theme of the month is the National Tax Rebate . . . which only applies to purchases closed before December 1st, 2009.  So, if you are a potential first time home buyer, don't delay any longer.

Also as promised, here is your bi-weekly update on closings in the Hart County Area.  While we did not match the 28 sold or contracted properties from the last two weeks of September, we still had a strong showing with 11 properties sold or under contract during the first two weeks of October.

It is crucial to note that, although the overall number of contracts was smaller, the average sales price was 25.5% higher.  The Average Sales Price for the first two weeks of October was $297,287.50 vs $236,780 for the last two weeks of September. 

AND, the average number of days on the market was 23% shorter.  The Average Days on Market for the first two weeks of October was 110 days vs 143 days on market for those which moved the last two weeks of September.

The following properties went under contract in Hart County over the last two weeks:

• 1820 Liberty Hill Road.  3/2.  I will update the sales price after closing.
• 278 Knotts Landing.  3/2.  I will update the sales price after closing.
• 784 Lightwood Lane.  3/2/2 lake home.  I will update the sales price after closing.

The following properties sold in Hart County over the last two weeks:

• 225 S. Webb.  2/1 intown.  Sold for $9,400.
• 744 Speedway Road.  4/2 doublewide.  Sold for $84,900.
• 429 Opal Ext. 3/2.5 in town home.  Sold for $92,500.
• 75 Deerfield Court.  5/3 with a pool.  Sold for $245,000.
• 100 Heathwood.  4/2 lake home.  Sold for $255,000.
• 586 Winding Way.  5/3.5 lake home.  Sold for $339,500.
• 211 Lake Shore.  5/4 lake home.  Sold for $557,000.
• 307 Lake Shore.  5/4.5 lake home.  Sold for $795,000.

Sales prices appear to be going up as the contracts come streaming in.  If you have ever considered buying a home on Lake Hartwell, they don't appear to be getting less expensive.  Average interest rates are currently in the 4 to 5% ranges.  NOW is the time to buy . . . 

If you've been waiting patiently for the best time to sell, let's get it out there ASAP and see if we can catch a ride on this late season rush.  

Buyers and Sellers should call Julie Haley TODAY.  Allow me to put my knowledge of our market to work for you while the timing is right!  Julie@JulieHaley.com

Helping Your Child Buy Their First Home

With Real Estate Prices bottoming out in many areas and a juicy tax credit still on the table, now may be a great time for your child or grandchild to buy a first home.

But these days, mortgage lenders may demand substantial down payments and they often charge high fees and unattractive interest rates to those with less-than-stellar credit.  Wouldn't it be great if you could loan your child or grandchild enough money to make the purchase?

Obviously, this idea isn't for everyone.  But if you can afford to lend a hand, the Feds will help, too, with a tax credit worth up to $8,000 for deals done by November 30, 2009.  With that deadline in mind, here's what you need to kno.

The Soon-to-Expire Home Buyer Credit

The Stimulus Act extended the first-time home buyer credit to cover qualified purchases that close by November 30, 2009.  The credit equals the lesser of:

• 10% of the purchase price,
• $8,000, or,
• $4,000 for a buyer who uses married filing separate status.

Your child can use the credit to offset his or her federal income tax bill, including any alternative minimum tax (AMT).  Since the credit is refundable, they can collect in cash any remaining credit after their federal income tax bill has been reduced to zero.

Of course, there are some ground rules:

• The credit is only available if your child has not owned a principal residence in the U.S. during the three-year period that ends on the purchase date.  The home must be your child's new principal residence.  If your child is married, both spouses must pass the three-year test.
• The credit is phased out if your child's 2009 modified adjusted gross income (MAGI) is too high. (MAGI is the number at the bottom of the first page of your child's 2009 Form 1040, increased by certain tax-free income from outside the U.S.)

The phase-out range for unmarried individual and married individuals who file separately is between MAGI of $75,000 and $95,000.  The phase out range for married joint filers is between $150,000 and $170,000.

    see the full article by Bill Bischoff; published September 10, 2009 on MSN Smart Money

at:  http://www.smartmoney.com/personal-finance/taxes/helping-your-child-buy-their-first-home/

If this article interests you, or if you have a child in college, also read my blog article titled: "Act Now to Take Advantage of the National Tax Rebate and Avoid Paying Rent Throughout Your College Student's Education"

Act Now to Take Advantage of the National Tax Rebate and Avoid Paying Rent Throughout Your College Student's Education

According to the Office of Student Financial Aid at the University of Georgia, average room and board expenses in Athens total $615 per bedroom / per month – 12 full months per year.   Meaning, rental houses in Athens easily pay for themselves while continuing to hold or increase their value throughout the entire period of ownership.  This is why I have always recommended putting investment money in rental houses in Athens, Georgia.

The intelligence of these investments applies particularly to parents of college students because of the vast savings afforded by purchasing rather than renting in a college town (an area where I have more than a little bit of experience)!

My parents helped me to purchase my first Athens rental property while I was in college at UGA.  The rent paid by my roommates covered the mortgage payment, escrow payment, and my portion of the utilities throughout my entire time in college.  Once out of college, I moved out, and used the additional rent to supplement my income while I settled into my career.  Then, I sold the property for a $35,000 profit over purchase price and used that money to pay for the down payment on my first home with my husband (and new car!).  

By being smart investors, my parents made a one time cash investment of $7,000 and avoided paying rent or utilities for my entire time in Athens – an average savings of $7,300 per year.  Eventually, they also received their cash investment back, AND their intelligent investment provided me a nest egg to promote a strong start to my future without having to get into debt over my head or ask them for financial assistance. 

In addition to the obvious savings my parents enjoyed, and the nice start in life afforded to me by their investment, home ownership allows your young adult to build crucial positive credit while helping them learn responsibilities of home ownership. 

If you have a son or daughter in college, I highly recommend looking into purchasing a property in the area.  And, do it NOW to make another $9,800 that is only available for purchases by December 1st.  Even if you lend the downpayment money to your college student - as long as they are first time home buyers living in the house, they should qualify for both the National $8,000 tax rebate and the Georgia State $1,800 tax rebate offers.  But, they have to CLOSE before December 1^st to qualify.

With that benefit, plus the rent, your savings should total ~ $40,000 over a 4 year college career.  This doesn’t even take into account the savings for students who are currently on out of state tuition – add another $80,000 in savings for that.  Plus equity gained and profit after the sell . . . for any family with the means, this investment simply makes good sense!

The market is perfect for Buyers right now, thus the property should produce a very nice profit in the future if they wait for a good market to sell. 

In review:  assisting your college age son or daughter with purchasing before December 1^st rather than renting or living in the dorms saves an immediate $9,800; another $7,300 per year throughout their college careers, and then saves your young adult incalculable amounts in interest rates, fees, PMI, etc. by having a nice nest egg for their future.  All the while, teaching them crucial lessons for adulthood.  This is what I call a win-win-win-win situation!

Contact Julie Haley TODAY to make the most intelligent investment you can make in your child’s future.  Julie@JulieHaley.com

One More Time - Let's Revisit the Tax Rebates Available before It's Too Late!

The good news is, the real estate market seems to be rebounding nicely.  If you've read my post regarding the 28 properties which went under contract or sold in Hart County during the last 2 weeks of September, this is not news to you!

While not the only factor, I feel the national first time home buyers tax rebate is at least partially responsible for this rebound.  Unfortunately, this offer only applies to properties which close before December 1st. 

If you think you still have plenty of time to find the right property and close before December 1st, think again!  Mortgage lenders are trying to mend their evil ways, resulting in slower processing, knit-picking underwriters, and more intensive due diligence inspections.  The average first home purchase closing takes 4 weeks.  If the property you choose is a foreclosure or short sale, it could take twice as long. 

With the tax rebate currently applying only to properties which close by December 1st, home buyers hoping to take advantage of this offer need to be under contract THIS WEEK to assure receiving the benefits.

This is why I want to make issues of the tax rebate offer my theme for the next week . . .

I won't go over the basics of the program again.  To find out those basics, see my earlier blog under the archives for "April 2009" or under the category "Buyer's Tips".  However, I will add that I have since read articles which indicate the tax rebate can be used in instances where the lender borrows money from a family member to purchase!  Naturally, you still need to check with your personal tax advisors, but the information has come from reliable sources.

This is important for newlyweds and particularly college students to research.  I've written articles in the past describing the many positive aspects for parents of college students to purchase a house rather than spending money on rent.  I am going to pull that one out of the archives, dust it off, and repost it over the coming days.  If you include the GA State tax and the National tax rebate, your college student can make enough in rebates by buying a house to pay for a full year of college tuition AND books, with more left over!  Now - more than ever before - it is crucial for parents of college age sons and daughters to discuss the possibilities of purchasing over renting!

As this is my theme for the next two weeks, you will find articles going in depth on even more of these subjects every day.  In the meantime, contact me at julie@juliehaley.com for further discussions.  Don't wait; the clock is ticking fast . . .

What's Happening This Week on Lake Hartwell?

So, I've been ignoring my blog lately.  For those of you who read my blog back when I was writing in it often, I am sorry.  I was working really hard to pull together a project for a developer client of mine, and . . . well, the reason doesn't matter!  What matters is I have a new plan for keeping my readers informed through this blog: 

Every 15 days, I plan to post the local happenings in the Real Estate Market around Lake Hartwell.  I know those of you who follow Lake Hartwell are interested in what has Sold, Gone Under Contract, or Been Newly Listed. As part of my job, I always research this information anyway.  Now, I'm going to inform my loyal readers . . .

Since September 15th, the following 27 properties have Sold or Gone Under Contract in Hart County:

307 Lakeshore - a wonderful 5 bd / 4.5 ba lake home very close to town.  List price of $980,000.   I'll let you guys know the sales price when it closes.  I had a client who made an offer on this house in September, too bad they refused to raise their offer - it's an amazing house that they missed out on.  BTW:  Speaking of amazing houses - the house 2 doors down from this one is bank owned and for sale.  It needs some work, but is preapproved for a short sale of $595, has a new 2 story dock, and is a GREAT deal for someone who would have painted and changed carpet anyway!

112 Highland Shoals Court.  List price of $465,000 / Sold for $440,000.  4 bd / 3.5 ba on 15 acres.

14 Azalea Drive. List price of $199,000.  I'll let you know the sales price.  3 bd / 2 ba close to town.

100 Relim Lane in Peek Estates.  List price of $132,000.  I'll let you know the sales price.  3 bd / 2 ba close to town.

209 Providence Point.  List price of $639,000 / Sold for $592,000.  4 bd / 4 ba lake home off Yacht Club with single slip boat dock.  On market for 5 months.

291 Oak Tree Lane.  List price of $65,900 / Sold for $50,000.  3 bd / 2 ba bank owned house needing "some work" off Mnt Olivet Road.  On market for 6 months.

129 Oak Street.  List price of $59,900 / Sold for $59,900.  2 bd / 1 ba house close to town off North Forrest.  On market for 6 months.

98 Barefoot Bay.  List price of $799,000 / Sold for $750,000.  4 bd / 2.5 ba lake home in Chandler's Ferry with covered 1 slip dock.  On market for 6 months.

1471 Will Bailey Road.  List price of $189,000 / Sold for $169,900.  3 bd / 2 ba on 4 acres.  On market for 6 months.

744 Speedway Road.  List price of $84,900.  I'll let you know the sales price. 4 bd / 2 ba doublewide on 5 acres.  On market for 3 months.

135 Highland Avenue.  List price of $139,9000 / Sold for $135,000.  3 bd / 2 ba in town.  On market for 4 months.

1158 Knox Bridge Crossing.  List price of $335,000.  I'll let you know the sales price.  Commercial and Farm property on 15 acres.  On market 2 months.

100 Heathwood.  List price of $255,000.  I'll let you know the sales price.  4 bd / 2 ba lakehome with single slip dock.  Bank owned.  On market 2 months.

1640 Ridge Road.  List price of $59,990 / Sold for $32,500.  2 bd / 1 ba close to town off Ridge Road.  On market 3 months.

15 Graham Way.  List price of $109,900 / Sold for $105,000. 3 bd / 2 ba close to town in Peek Estates.  On market 3 months.

48 Lewis Road.  List price of $78,500.  I'll let you know the sales price.  3 bd / 1 ba close to town off Hwy 29N.  On market 3 months.

1561 Hodges Mill Road.  List price of $34,900 / Sold for $33,500.  3 bd / 2 ba bank owned mobile home.  On market 3 months.

97 Cabin Lane.  List price of $299,000.  I'll let you know the sales price.  3 bd / 2 ba lake home close to town with slip in community bank dock. 

75 Deerfield Court.  List price of $249,000 / Sold for $229,000.  5 bd / 3 ba with a pool on 3 acres in Royston.  On market 1 month.

Willis Road.  List price of $135,000.  I'll let you know the sales price.  3 bd / 2 ba off Knox Bridge.  On market 1 month.

151 Alderman Lane.  List price of $289,900.  I'll let you know the sales price.  2 bd / 2 ba off Mnt Olivet.  On market 1 month.

1820 Liberty Hill Road.  List price of $24,500.  I'll let you know the sales price.  3 bd / 2 ba mobile home.  On market 1 month.

225 S. Webb Street.  List price of $14,800 / Sold for $9,400.  2 bd / 1 ba historic age house in downtown Hartwell.  On market 1 month.

12 Spout Springs Court.  List price of $25,000.  I'll let you know the sales price.  2 bd / 2 ba bank owned mobile home off Liberty Hill.  On market 2 weeks.

429 Opal Ext. List price of $94,900.  I'll let you know the sales price.  3 bd / 2.5 ba near the YMCA.  On market 1 week.

1719 Lake View.  List price of $590,000.  I'll let you know the sales price.  5 bd / 3.5 ba lake home with covered 1 slip dock and boathouse.  On market about 2 days!

278 Knotts Landing.  List price of $37,900.  I'll let you know the sales price.  3 bd / 2 ba mobile home on 5 acres. On market about 2 weeks.

Proof positive - if your Realtor tells you that nothing is happening, you need to call me instead!  Things are happening, and I work every day to help my clients take advantage of it!  Right now, everyone is trying to rush in to buy before the $8,000 tax credit offer goes away.  Call me today, and let's make something happen together!

The Effect of the Tax Rebate on the Property Ladder, You, Me, and Even Retirees in Florida

Most have heard Congress recently passed legislation allowing qualified first time home buyers to receive a tax rebate of up to $8000.  Google it and research the benefits if you haven't done so.  Unlike the 2008 version, this rebate doesn't have to be repaid!  It is an excellent attempt to propel the real estate business, and I believe it will have a great impact if the lenders will use their bail out money to join in the common cause.  Even though the tax rebate only applies to first time buyers, sellers of all types of properties should see benefits as a result of the property ladder . . .

What I've been terming "The Property Ladder" works like this: 

• Once a first time home buyer is preapproved for a loan, they choose a Realtor and buy a starter home listed for sale - the first wrung of the ladder.
• The seller of the starter home is then able to buy a bigger house perfect for their growing family - the next wrung up the ladder. 
• This allows the Seller of the bigger house to finally move to the house of their long-term dreams - the next wrung up the ladder. 
• The seller of the dream house is now a happy retiree able to buy a condo in Florida, a lake home in Hartwell, and a couple of rental investment homes in Athens, because the rental income pays their annual tax bills on all of the properties.

When the banks began pulling back on funding and tightening regulations, more first time home buyer candidates had to remain renters.  Thus all of the houses on the market took longer to sale: from starter homes to family homes to dream homes, and so on, and so on. 

Obviously, moving the starter homes is an opportunity for everyone hoping to sell; Family homes, Florida vacation homes, Hartwell Lake homes, townhomes, mansions, and even double wides.

Because qualified applicants can file for the rebate with their 2008 tax return, or lower their withholding over the course of 2009 by the amount of their rebate, the tax rebate should help first time home buyers with the expenses of first time home ownership.  I should also add that most foreclosures can be purchased at large bargains, but often need work.  This requires cash many starter home purchasers don't have after going through the process of putting a downpayment on a house.  This rebate allows them a means to pay for those repairs and begin filling some of the empty shells left after foreclosures.

Oh - and parents of college students - I think this is a great opportunity to experience the benefits of the rebate while helping your college student grow their credit:  Gift them the funds and assist them with Buying the house they currently rent (I even know of a lender who can offer 100% financing!).  Have their roommates continue to pay rent, and your college student will have an income stream while also receiving a tax rebate that will assist in their education expenses for the year - and gain equity throughout their college career.   BTW: A good property management company (All Hart Realty, for instance!), can manage it for him or her, collect rents from their roommates, pay the mortgage, make repairs, and simply cut a check to your son or daughter every month for you.

Encourage everyone you know who can benefit from the tax rebate to buy!  Contact me anytime, and I'll work with you to help determine your elligibility.

Understanding Points, Rates and Fees

There are several additional costs associated with your mortgage

Not only do you have to understand what type of mortgage you should choose, you have to understand the costs associated with your mortgage. All of these costs will be paid upon closing your mortgage.

Purchase Points

Purchase points, also known as "buy-down" or "discount points", are an up front fee paid to the lender at closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the lower your interest rate, but the more money you'll need at closing.

How do you decide whether you should buy points and if so, how many? Well, the decision should be based on how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If you plan on living in your home for more than five years, it's probadly a good idea to purchase points. The longer you live in your home, the more you can save on interest over the life of your loan.

Interest Rate

When you get a mortgage, you are charged with an interest rate. This is the rate which the lender charges you for using their money to buy a home. It determines how much your monthly payments will be. Generally speaking, the higher the interest rate, the higher your monthly payment.

Mortgage interest rates change constantly, daily, even hourly. If you speak to a lender and are quoted a specific interest rate, that's not to say you'll necessarily get that rate when you close on your loan. Not unless you formally lock-in that rate with the lender. Locking in an interest rate will guarantee you get your loan with a particular interest rate. Lenders will allow you to lock in for 15, 45 or 60 days. But the longer you lock in, the more expensive it will be, since it's more of a risk to lenders.

Fees

There are always fees associated with getting a mortgage, these fees cover the cost of processing and underwriting the loan. These fees can include charges for ensuring the title to the home is free and clear, paying for a land survey, or for paying for a home appraisal which gives you the estimated value of the property (lenders require an appraisal to close on your mortgage).

Deciding which mortgage to get may depend on what each lender does because different lenders may charge different amounts. Some may charge lesser closing fees to lure you in, but may charge you a higher interest rate, which means you may pay more in the long run. But everyone has different needs. You may or may not be able to afford to pay more at closing and are willing to pay more over the long term.

Before it comes time to close, do your homework, make sure there are no hidden fees, and ask your lender lots of questions so that you understand all the costs involved with your mortgae