Real Estate News

This friday a new global warming report is scheduled to be realeased. The report will explain that the climate is changing faster than anyone could have predicted. At least 500 sicentists are meeting today to finalize the preliminary report on the effect of rapid climate changes. The news they will be releasing is not going to be good. They are saying that significant climate changes are likely to occur within the next 10 years.

Who’s to blame? The scientists do feel that “we” are the reason for these changes. If that is the case, then we can change the outcome.

What exactly can happened? They say that there be increasing numbers of heat waves, intense tropical storms, intense hurricanes, a sharp rise in the sea level and more melting of snow and glaciers.

While it’s not a pretty picture, it’s certainly not at the “back to the ice age” level in the movie. However, it does make you wonder if we could reach that level. No one knows what lies ahead.

They are coming up with ideas on how to prevent more global warming and counteract what has already been done. The preferred method is cutting back on carbon emissions. There are other alternatives that are being explored. For instance, using mirrors to deflect some of the sun’s rays. They are being called sun shades.

The 2007 Dog Lover’s WALK at the Landings is scheduled for Saturday February 10th. The WALK will support the humane society. People will be meeting at the Messiah Lutheran Church parking lot at 8:30 am. There you will check-in and be a part of the pre-walk activities. Don’t worry, there will be long and short routes. Also, there will be a gift for every walker, obedience and agility demonstrations, photo opportunities, refreshments, and lots of fun stuff. The walk should be over around 11 am.

The Pledges made through the WALK will support the Humane Society Savannah/Chatham in their efforts to reduce pet overpopulation, provide education to the community about pet ownership, protect animals from abuse, and shelter and care for homeless animals. They will give these deserving pets adoptive homes and eventually permanent families.

Spread the word! Make sure you tell every animal lover you know about this WALK. Together we can make this inaugural event a HUGE success.

Join in the fun and get your pet a little exercise. It will also give you the chance to see the Landings at Skidaway Island. Unfortunately, I am unable to attend so I already sponsored one of our Weichert Associates. Do your part to help out our furry friends.

          The buyer can now describe both a first and second mortgage loan. The buyer then has to prove his ability to obtain all loans set forth in the contract. This change was a direct result of buyers seeking a first and second mortgage in order to purchase.
          The closing attorney section has been modified to allow both parties to negotiate who the attorney will be. The closing attorney represents the lender in the closing in which the buyer is seeking financing.  In “all cash” transactions, there is now a check box so that both parties can negotiate who the closing attorney will represent.
          The inspection section has also been split into three categories.  Along with the right to inspect the property,  it is now a duty of the buyer to inspect the neighborhood. The buyer has to acknowledge that they had time to acquaint themselves with the neighborhood conditions.
          Previously, the owner was responsible for furnishing the buyer with an Official Georgia Wood Infestation Report. Now, it is the buyer’s responsibility to have the property inspected for any wood destroying pests and to obtain the Report. If anything is found, the buyer can request that it be treated, repaired, or contract termination.
          Lead-based paint is now treated like any other adverse condition that may affect the property. The buyer has the right to test for lead-based paint during the due diligence period, formerly known as the right to terminate. Now, the buyer has the right to request any repairs or to terminate the contract. Also, the property disclosure no longer has the lead-based paint disclosure. There is an exhibit that must be attached to all contracts on homes that were constructed prior to 1978 or were sellers are unsure of the home’s age.
          The deed of conveyance and the owner’s affidavit that is prepared by the closing attorney are now being treated as  closing costs. Previously, sellers were responsible to pay these.
          The time frames in the contract have been changed to be more specific. Problems can arise if the buyer is from out of state or out of the country. Time is now based in reference of Georgia time.
          While the changes are beneficial, they are also now putting more weight on the buyer. If you are thinking about or currently looking for a home, be sure to read the contract well. If you have a real estate agent, they will be able to help you understand these changes and keep you from breaching the contract and losing your earnest money. If you have any questions or need any help, feel free to contact me anytime.

Technorati Tags: Port Wentworth, Savannah GA, Southside

You all know the saying and it couldn’t be truer today. The Georgia Association of REALTORS® has released the new 2007 purchases and sales agreements. They made quite a few changes including the overall organization. The important things like price, date of closing, earnest money, any seller contributions, and method of payment are now on the very first page.

The change that will affect most buyers was the changes to the method of payment section. The old contract allowed the buyer up to the date of closing to be approved for the loan described in the agreement. This caused many problems as you can imagine. For instance, a seller moves their belongings or even purchases another home only to find out the buyer can not obtain the loan set forth in the contract. On top of this, the buyer also received their earnest money back. The seller now has unrecoverable costs.

Now, the buyer has a negotiated period of time to determine if they do indeed have the ability to obtain the loan or loans described in the contract. This period of time is called the Financing Contingency Period. If the buyer is unable to obtain the loan(s), the buyer must then give the seller a letter of loan denial. The loan denial will tell the seller all of the reasons why the loan was denied. This letter MUST be given to the seller BEFORE the end of the Financing Contingency Period. If the letter is not given to the seller, the loan is considered to have been approved and the contingency is removed.

So, what does this mean?
It means that if the buyer is not able to obtain financing, the buyer will NOT get back their earnest money. Therefore if the lender gives the buyer a verbal denial and fails to send the letter, the buyer is assumed to have the ability to acquire the loan(s). If the lender fails to approve or deny the buyer’s loan(s) during the Financing Contingency Period, the buyer is deemed capable of getting the loan(s). The lender may even approve the loan(s) during the contingency period only to deny the loan(s) later. The buyer is now breaching the contract if they can not close on the property. The buyer is no longer required to apply for financing in a specific time frame or at all. If there is no letter of denial, the buyer is assumed to have applied and capable of obtaining the loan(s).

Now more than ever, the buyer must beware of not only the new changes, but also their choice of mortgage lender. You must may sure your lender can work within the deadlines and keep their promises. These changes will also encourage buyers to start the loan approval process before signing a purchase contract. This will also allow the buyer to know exactly how much they can afford to pay for a home. Buyers may also negotiate longer Financing Contingency Periods to allow them more time to receive the lender’s letter of loan denial. Therefore, a buyer can extend the contingency period until the closing date. The real difference is that it is now negotiable.

If the buyer is afraid they may not receive the letter of loan denial in time, they may extend the Due Diligence Period to be greater than or equal to the Financing Contingency Period. This will allow a buyer that does not receive a letter in time to terminate the contract.

Also if the buyer receives the letter in time, the buyer still MAY not get their earnest money back. If the buyer is found to be the reason for the denial (such as not having necessary funds for closing), the buyer is in breach of the provision in the GAR contract because the buyer guaranteed they had enough funds to close. Therefore, the buyer would not be entitled to get their earnest money back.

Technorati Tags: Port Wentworth, Savannah GA, Southside

The mortgage bill has arrived and you don’t have the money to pay it. You are not alone. Many people find themselves facing this problem. It may seem hopeless, but it’s not. There are ways to stop the foreclosure process and even save your home.

If you have credit card debt, you should always pay your mortgage first. You home is your biggest asset. You want to keep your home. Pay your credit cards later.

Make sure your mortgage has not been sold. This happens more than you think. You are paying the old mortgage lender but the new lender is not receiving any money.

Always keep in contact with your lender. Let them know if a problem has arisen and if you are going to be late. By talking to them you are showing you want to resolve this and they are more likely to work with you. Always communicate in writing and make copies. This way you have proof that you are trying to work things out.

Watch out for debt removal scams. They seem to know when you are at your lowest and strike. Instead go to the National Foundation for Credit Counseling for help.

The foreclosure process usally takes at least 4 months to complete. That means you have 4 months to find a way to resolve your financial problems and come up with a solution.

If you have a FHA or VA loan, there are special programs out there for you. Call you lender and ask them what is available.

Military Personnel have special rights under the Soldiers and Sailors Civil Relief Act that can stop foreclosure and may even reduce your interest. Contact your lender or military legal advisor for more information.

Check out the National Consumer Law Center to see if there are any legal loopholes that may help you stop or slow down the foreclosure process.

Check with your employer to see if you can use your retirement savings plan to pay your mortgage. Make sure you will not be assessed any early withdrawl penalties. You don’t want to lose any more money.

Look into restructuring your loan. If you have two mortgages, try combining them into one. If you a lot of credit card debt, try consolidating all the debt. You can even try to extend your loan from 15 to 30 years. With the new 40 year loans, you can extend your 30 year loan to a 40 year loan.

It may be hard on you, but you can always ask for your relatives help.

There is always the option to sell your home to pay off the mortgage. You can also deed the home to the lender to stop foreclosure.

The last option is to declare bankruptcy. Doing this allows you legal leverage to resolve your issues while temporarily stopping the foreclosure process.

Again, remember you are not alone in this. Take any steps necessary to prevent the foreclosure and to try to save your home.

Real estate is just like any other industry. There are new trends and some that make come backs. Are you marketing your home effectively? Does you home have bell bottoms when it should have low riders? Let’s look at some of the “in” trends to marketing or redecorating your home.

What’s In:

Pricing your home for the current market
Timing your Home Marketing
     Summer and spring are the best times to sell your home. While fall and winter are a little slow.
Internet and technology savvy buyers
     With interest rates still low and the market correction, buyers that were previously unable or fearful will start to return to the market.
Homes with extra space for a home office or two
     With gas prices being unstable, home offices are on the rise. Buyers are looking for that extra space. Some buyers are even looking for a place they can have two home offices.
Flex Space
     In addition to office space, some buyers are looking for personal space. They want a place they can go to work on home projects or to just relax
Dog House
     Do you have a room ajacent to the master bedroom? If so, they are becoming popular. It’s a great alternative to sleeping on the couch and for trying to get away from that snoring partner of yours.
Modular homes
     Modular homes have changed a lot in recent years. They aren’t like the typical mobile homes any more. They offer many of the same luxeries and amenities of a single family home.
Energy Friendly Homes
     Everyone wants to save money and also help the environment if they can. Also make sure they are user friendly and easy to maintain
Structured Wiring
     The internet and technology are important to a majority of people. Having the home wired for all their needs is very attracted to today’s technologically advanced buyers.
Now let’s look at what’s on it way out or has been long gone.

What’s Out:

Selling “As Is”
     In today’s market, the words “as is” does not instill the confidence necessary to get buyer’s into your home. After all, they did lose confidence in the market. You must help build their confidence in the market and more specifically your home.
Buyer Incentives
     Some buyer incentives, like a new car or a vacation, will not help sell your home. Offering to pay some closing costs or redecorating allowance may help however.
Open Houses
     Having your home open every weekend is a sign of desperation. Try having an open house every 3 to 4 weeks to get traffic but avoid the distraught seller vibe.
Over Price Offers
     Although not too long ago, houses were flying off the market and getting offers over the list price. In today’s market that is no longer ikely to happen. The buyers have many choices out there. If the terms aren’t favorable for them, they will simply move on to the next house.
Glass in the Kitchen
     Although most buyers like the look, they do not like the maintenance required. The kitchen is a greasy place. You don’t want a lot of glass in the kitchen that needs to be cleaned constantly.
Spiral Staircases
     The baby booming generation loved these. However, they have aged and their children are not fond of them. They are unfriendly to pets and to children.
Bowl Shaped Sinks
     Another thing buyer’s love to look at but don’t want is the bowl shaped above counter bathroom sinks.
Shiny Fixtures
     The antiqued or polished brass is out and has been replaced by pewter or brushed nickel.
Is that really a bedroom”
     When the market was hot, investors were turning things like walk-in closets into bedrooms to get more money.
Flooring
     Bamboo floors and hardwood laminate are quickly becoming a thing of the past. The bamboo is easily dented and scratched. Also in some climates, it can warp. The laminate flooring can not be sanded multiple times to change the color or remove stains.
Smokers Beware
     Buyers don’t like stepping into a home that has the second hand smoke scent through out. It may be your home right now, but you want the potential buyers to start thinking of it as their home.

There are a lot of people out there that don’t seem to know what we do exactly and how we can benefit them. I thought I would take a few moments to address some of the most common mistakes or misconception people have.

Firstly, we are not all rich. We do not make lots of money. There are some wealthy agents out there, don’t get me wrong. The majority or average agent is not however. I found a study online that determined the average agent makes $36,000 a year gross (equivalent to 1 average home sale a month). Which means advertising expenses, mls fees, office supplies, license expenses, and continuing education cost must still be deducted.

Secondly, we will NOT do anything to get your business. There are some agents out there that are indeed only in real estate to make as much money as they can. However after a few bad experiences, people will no longer use this agent and he will soon after quit. A professional, full time agent wants to keep their clients happy. They will not do something against their personal or personal morals. And they will not sacrifice their relationship for profit. After all, we are in a business where we rely on client referrals. And for this reason, many new agents or agents new to the area (like me) find it difficult to get started. We don’t lose just one client when something goes wrong, we lose all their referrals as well.

Thirdly, buyer’s agents don’t want you to pay more for a home just to make more money. If you increase your offer by $10,000, the agent only gets about $100 to $200 more for themselves. Again, it’s not worth $100 to $200 more to lose a returning client and all of their potential referrals.

Fourthly, a buyer dealing directly with the listing agent is not going to save any money. The listing agent is working for the seller. It is their job to get the best price and terms for the sellers. Therefore, they are not going to negotiate a better price for you. Also, you may not save the commission money. The seller and the agent worked out a percentage at the start. That agent will share their commission with another real estate professional that helps them sell their clients home. They do not, however, have to lower their commission since there is not buyer’s agent. So in the end, the buyer will not get the deal they were hoping for and they were unrepresented.

The fifth misconception is that calling more than one agent will increase the number of homes that you can see. If you are looking in more than one area or county, this can be true. However if you are looking at one particular city, you are only going to have several agents sending you the same listings. If you are looking in more than one area, you can sign buyer’s agency agreements with more than one agent. Call some agents and find out what areas they cover. In the agreement, make sure you define the areas in which each agent will work. Such as, Agent A will find homes in Chatham County and Agent B will find homes in Effingham County. This will eliminate some confusion. When you sign a buyer’s agency make sure you are not binding yourself to them for a long time or make sure it gives you the right to terminate the relationship at any time.

The sixth misconception is to pick an agent based on the number of listings they have. They may not necessarily be the best agent for you. Remember, you will need to have time devoted to you. They may be too busy to accommodate you. A brand new agent can be just as good if they are knowledgeable and competent.

Lastly, a real estate agent will not get more money for your home than the market will allow. The agent help you price your home for current market conditions. For Sale By Owners often get less money because they do not know the market. In addition, buyers will often offer less than the asking price because the seller is not paying a commission.

Coming from Pennsylvania, I have never been exposed to communities or subdivision. You won’t find a subdivision with a community pool or playground where I am from. We don’t have homeowner’s associations or covenants. We simply have homes of all different shapes and sizes on streets. So it was a little overwhelming for me when we first moved to Georgia. The most overwhelming was Savannah. Savannah is a beautiful area filled with history and different styles. Finding your way around and where you want to live can be a difficult task. So, I thought I would try to break down different places for different styles of people.

The laid back and easy going person will do well on the islands or beach area. People there like to take their time, enjoy life, and are pleasantly happy. They have great views and wonderful scenery all around. While driving there, you feel like you have been transported to an exotic island as you follow palm tree lined roads. People that love beaches for a backyard have found the right place on the islands. Even if you can’t afford to have the beach in your backyard, there are plenty of homes will get you close. Most of the homes are the bungalow style up on stilts to help prevent flooding inside your home. The only drawback would be springbreak and college students. But that is only a temporary bother.

The history fanatic will be in heaven in the historic district of Savannah. Traveling down roads with Oak trees covered in Spanish moss in the centers, the old Victorian houses seem to tell you a story if you are listening. The past meets the present here. There are many different styles of old buildings around the squares. Almost all the squares were the originals from the town plan in 1733. The boundaries of the Savannah Historic District are the Savannah River,East Broad Street,Gwinnett Street, and Martin Luther King, Jr Boulevard.There are tours available and lots to look at. Some of the most notable buildings are Owens-Thomas House built in 1818 on Oglethorpe square, the Edmund Molyneux Mansion built around 1917 on Bull Street, Spencer Woodbridge House built in 1795 on Habersham Street, and the Greene House built in 1853 on Madison square.

For people that like love city living, there is the downtown Savannah area. It is close to shops, restaurants, malls, and everything Savannah has to offer. Some places still have the old cobblestone roads. The homes are older and close to one another. This is also a great place for someone looking to invest. The Savannah College of Art and Design, Savannah Technical College, Savannah State University, South College, and Armstrong Atlantic State University create great opportunities for rental incomes. Most of these homes are the old cinder block or brick bungalow style homes. There are some single and double story homes and duplexes as well.

 If you like being close to everything without being in the center, the Southside is for you. The Southside consists of many different communities south of Hunter Army Airfield and continuing west. Windsor Forest is an older community that has simple ranches to more spacious homes in the older sections. It is close to Armstrong Atlantic State University, which makes it ideal for university staff. There is a 9 hole golf course located in the center as well. Coffee Bluff is a newer than Windsor Forest and has “low country” one and two story homes. It is located near two rivers, which allows water access, boating, and scenic views. There is a marina located here. Georgetown was the first planned community and was built in the 1970’s. They have there own elementary and middle schools. It also has “low country” style homes in single or double stories. Also with the addition of the Southwest Bypass, the area is great for commuters. Vernonburg/Beaulieu has been separated from Savannah since 1742. It was chartered as a township in 1866. The community has original plantation homes that have become communities.There are less than 250 people living in the secluded and somewhat private area. The Southside, as a whole, is great for commuters, university staff, and military personnel. The Savannah Mall is around ten minutes away along with all kinds of shops and eateries. 

People that want to be farther from the city in newer homes and communities have a place in the Savannah area too. There are many places that are growing rapidly outside the city but are still within 30 to 45 minutes. Richmond Hill in Bryan County is a great place. It is growing everyday. However, there are still places with lots of land for those that love to have room. It is convenient to both Hunter Army Airfield and to Fort Stewart. West Chatham County is another great option. It consists of Pooler, Port Wentworth, and part of Bloomingdale. It is impossible to drive anywhere without seeing something being built here. A new elementary and middle school will be on the way in Pooler. The growth is this area is impressive. There are plenty of new communities that offer different amenities, so be sure to look around. There is something for everyone out here. If you want a more country feel, Effingham County is for you. Although South Effingham has experienced and will be experiencing a lot of growth, there are still some areas untouched. A benefit of the growth was new schools. You can also find new communities here as well along with places with acreage.

Basically, the Savannah area has something to fit everyone. It’s only a matter of finding it.

Technorati Tags: Port Wentworth, Savannah GA, Southside

Whether the real-estate bubble has burst or just never happened, it’s time to get over it. In the places where homes seemed to appreciate exponential, the current prices are stagnant, or worse. The new home builder’s stocks are down and their inventories are up.
All this creates a buying opportunity for first time or seasoned investors. We expect to see the property investors start to reenter the market.  They can buy while the prices are low and hold until the value starts to increase again.
A first time, novice investor can make money in smaller properties that are easy to acquire and keep up, even in this uncertain climate.
Let’s look at several options that could be a great investment.
The most basic investment in property would be the in-law suite or the guesthouse that is on your home site. They can be attached to your home or a separate entity of their own. You will not get rich renting this way, but it can reduce your homeownership costs. If you rent out an in-law suite for $300-$500 a month, you can use that money to pay down your principle every month. If you have a 30 year mortgage on a $250,000 home, you can take of anywhere between 10 to 12 years and save $100,000 to $130,000 on interest. The best part is that you will be able to write off the costs including depreciation of it on your income taxes up to the rental income amount.
Then there is renting or flipping of single family homes. This should be avoided unless you can get the home at a big discount. Government liquidations, foreclosures, and bank owned properties can all be good investments. Renting involves buying and holding on to a property. Flipping, on the other hand, is cleaning and fixing a home up fast to make a quick turnaround. It’s all about managing a house that can pay for itself. In today’s market, the best way to go is renting. It can be difficult to make a house pay for itself. If the loan on the home is 80 to 90% of the value, the renter has to pay more to rent than they would to own the home.
For example: you buy a three bedroom, two baths home is Savannah, Georgia for $150,000. You put 10% down and have a 90% loan at 6%. Your monthly mortgage payment will be about $1070 including principle, taxes, interest, and insurance. Since you are a landlord, you need to add an additional $150 per month for any expenses. Therefore to break even, you would need to rent the home for around $1250 a month. Your renters could buy the house without any money down for $1165 a month at 6%. They would actually save money and build equity.
Since single family homes were in high demand, smaller two to multi family properties didn’t experience the pricing increases. Therefore, you can get a great deal. With little updating, you can still make positive after tax cash while charging at the lower end of the market. If you upgrade the units, you can charge at the top of the market.

In West Chatham County, as of today, there are 433 single family homes actively being sold and 127 homes that are under contract. There were 45 homes sold between December 10, 2006 and today. The average sales price was $259,435

There were three new listings,one home was sold today and another went under contract. Last month was a little better but the holidays usually are a little slower. However, the numbers seem to suggest that things are starting to pick back up. There were 880 homes sold last year. The average sales price was $232,415. In 2005, 771 homes sold at an average price of $220,677.

The 30 year fixed mortgage is 5.71% compared to the 5.73% it was last week.

All signs are pointing to a good start to the new year in Real Estate.