A recent article from Ron Phillips 2012 Immediate past president of the National Association of Realtors said a June survey of Economists indicated we have hit bottom and are now on the rebound. He mentioned that before the crash the majority of the work agents put in for their client was prior to contract and fall out was non-existent. However, in today’s real estate world, especially here in the Lake Lanier Real Estate market, there is more time put in after the contract and fallout is much greater.

Having come from the New Homes in the Buford Ga Real Estate arena it had always been the later for me. I can remember in the mist of the housing boom we had to sell 3 houses to get one closed. We wrote many contracts that never made it to the closing table. We were used to working hard so when the economy crashed we stepped to the plate and made corrections so we could continue our business.

I have seen many offices for the major real estate brokerages go out of business, maybe that is why?!. No longer do you have to affiliate with the big name Brokerages to have a successful business. The Lake Lanier Real Estate and Buford Ga Real Estate consumer realized that it was never the Brokerage that sold their home it was the agent! This gave all of us successful agents a chance to step away from the high costs required by major Brokerages and finally get the attention we deserved for a job well done.

As Realtors we should help protect our housing economy, including educating the consumer in making the best decision when considering the purchase of a home, (our fiduciary responsibility). The economy and housing values both have cycles.  It has been more than eighty years since the difference between the top and the bottom was so great. With the news of the economy moving in the right direction, we need to do so cautiously so we do not repeat the last 10 years. Below are 10 lessons Ron Phillips mentioned that came to mind. I think he is dead on.

1. The economy cannot recover without housing.
2. Everyone needs shelter, but not everyone needs to own their shelter.
3. High homeownership rates are important but they must be sustainable.
4. Home prices go up and go DOWN.
5. The process of purchasing / financing a home is more complicated.
6. Sound underwriting of mortgages is critical.
7. Home equity should not be used for ordinary living expenses.
8. Financial reserves for family, companies, and countries are necessary.
9. Homeowners confidence in the economy is directly related the value of their own homes.
10. The economy is global.

What is important is that we remember what happened as we prepare to write the future.  Most importantly, we should also have a sense of accomplishment that we endured these life lessons.

Let us all remember there is the good the bad and in the last 10 years the ugly to our economy, it all cycles. Personally, I am ready for some good again. As a good Southerner would say “God bless your heart “for doing better next time. Visit us often at AtlantaHomeConnections.com to see the latest Real Estate in Buford, GA and Lake Lanier Real Estate.

Deciding to list your home for sale is a momentous time. It means you will be moving on to a new stage of life, no matter if you’re moving up or sizing down. Take a moment to look over these tips for what every seller should do before they put their home on the market.

• Organize Your Paperwork: Every homeowner should have a detailed list of all past repairs, updates, and upgrades they’ve made. This will help your agent know what should be mentioned on the MLS. Did you put on a new roof in 2010 or a install a new water heater in 2009? These are great selling features because they mean less work in the future for the prospective buyer.

  Also included in this list should be any home warranty information. These warranties will most likely transfer with title of the home.

   

• Get Ready to Declutter: Even before you’ve officially listed your home for sale, you should start getting rid of things you don’t need. Starting now will mean a more thorough and less rushed job of clearing things out.

  Start with one closet and work your way through the entire home. Sort items to toss, keep, sell, and donate.

  Having a yard sale is a wonderful way of making a little extra pocket change while reducing the amount of things you’ll have in your home during showings and that you’ll need to pack up and move. It’s a win-win!

   

• Clean, Clean, and Clean Some More: Dirty homes are a real buyer turnoff. Now is a great time wash down walls, spruce up paint, and give your entire home a thorough cleaning. Do your carpets need refreshing? Consider renting a carpet shampoo machine or hiring a professional carpet cleaning company to come in and revamp your carpets.

  Chances are buyers will ask for this anyway come closing time. You’ll beat them to the punch and have a shiny, sparkling home to show for it.

   

• Get an Inspection: Did you think inspections were only for buyers? Having a pre-sale inspection can mean identifying problem areas. Perhaps you’re unaware that your foundation needs repaired. This will severely affect your listing price. It’s best to be prepared and realistic in today’s market.

   

• Make Repairs or Get Estimates: Your inspection will likely leave you with a list of repairs, large and small, that need made. Keep in mind that prospective buyers will also get an inspection of your home and will find these same issues. Head them off at the pass and do some fixing up. You may wish to go ahead with large repairs. If not, be sure to at least get estimates so you are fully prepared for negotiations (you’ll know what the real cost should be) or so you can provide the estimates for buyers.

   

• Start Staging: Staging is like prepping your home for its first date. You want to have it clean and well-dressed. This means amping up curb appeal with neat landscaping, fresh paint, and flowers. It means rearranging furniture and removing clutter.

  Congratulations on deciding to list your home for sale. Be proactive about making a good first step by following these tried and true tips. 
  
  
  Written by Carla Hill

The appraisal process often baffles consumers. They may feel that their home is worth a higher dollar amount, and so the appraised value doesn't always make sense to them. It is important to know that the appraiser is completely independent from lenders, buyers, sellers, and real estate agents, and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice (USPAP) and Fannie Mae. In most states, the mortgage lenders must also disclose the purpose of the appraisal, as each transaction carries its own set of rules.

In essence, these important guidelines help appraisers put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value.

For example, there is no set dollar figure associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, but the local marketplace supports the value of a pool at $15,000, then that item will be bracketed as [$15,000] on the appraisal.

Upgrades can usually be expressed at a higher percentage of their value in newer homes because the only way to obtain those upgrades was to put more money into the cost of building the home. On the other hand, the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal. This is because typically 25-40% of the project involves demolition and the fixing of issues that aren't uncovered until the project has already begun, such as plumbing or wiring that may need updating.

Ultimately, the value of the upgrades must be supported by comparable examples within the same marketplace. These comparisons must be drawn from current market activity within the last six months. This is a safeguard to prevent appraisers from attaching too high a value to the home in question, and opening up the appraisal for review. This guideline further states that appraisers can only base their opinion on the value of home sales that have actually closed.

As a Real Estate Broker, I make a point to follow the appropriate guidelines at all times, including the guidelines in the Home Valuation Code of Conduct, which among other things prohibits a lender or Agent from having any influence on how the appraiser values a home. Staying up-to-date on the rules of my industry promotes a good relationship with our clients, and helps to create easier and much smoother closings for the Sellers and borrowers.

April foreclosure activity decreased nationally by 5 percent from the previous month and was down 14 percent from April 2011. One in every 698 U.S. housing units had a foreclosure filing during the month.

Large decreases in California, Arizona, and Nevada are largely responsible for the decline in part due to an increase in short sale activity and their population.

However, 14 of the 24 non-judicial states saw in increase in foreclosure activity. One of these was Georgia. The Atlanta metro area was hit with a 21.3 percent increase. The Atlanta rate equates to 1 in every 298 homes is in some stage of foreclosure.

Check out the activity on our main foreclosures page  http://www.atlantahomeconnections.com/buford-foreclosures/ or call us today at 678-546-7387 to get started finding your next home!

According to the National Association of Realtors®, pending home sales are on an upward trend and are nicely above a year ago since reaching a low last April. That is great news for home buyers and sellers alike!  Perform a custom search for homes in Buford and other areas of North Metro Atlanta by clicking this link. You can find Lake Lanier Real Estate here and Buford Foreclosure properties here.

The Pending Home Sales Index, (a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed)  which is a forward-looking indicator based on contract signings, rose 2.0 percent to 97.0 in January from a downwardly revised 95.1 in December. This is 8.0 percent higher than January 2011 which was 89.8.

Lawrence Yun, NAR chief economist, said this is a hopeful indicator going into the spring home-buying season. “Given more favorable housing market conditions, the trend in contract activity implies we are on track for a more meaningful sales gain this year. With a sustained downtrend in unsold inventory, this would bring about a broad price stabilization or even modest national price growth, of course with local variations.”

The PHSI in the Northeast rose 7.6 percent to 78.2 in January and is 9.8 percent above a year ago. In the Midwest the index declined 3.8 percent to 88.1 but is 10.8 percent higher than January 2011. Pending home sales in the South increased 7.7 percent to an index of 109.1 in January and are 10.5 percent above a year ago. In the West the index fell 4.4 percent in January to 101.9 but is 0.7 percent above January 2011.

“Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,” Yun said. “If and when credit availability conditions return to normal, home sales will likely get a 15 percent boost, speed up the home-price recovery, and thereby significantly reduce the number of homeowners who are underwater.”

Determining your homes value in Buford Ga and Lake Lanier Real estate

Real estate agents use comparable sales or "comps" (properties recently sold in the area) to see what the market bears for a listing price to determine value when marketing your home.

But what makes a home a good comp? A few things must line up in order for the agent to utilize the comp to justify your listing price. The same neighborhood, school district, similar street and, of course, similar housing features and size. If these things align, then a comp can be used to provide a current estimated value of your home.

Ideally, using a comp from a home that is the same model in the same subdivision is key. Even better is if a sold comp closed escrow in the last 3 to 6 months. Taking comps from homes that have closed after 6 months can weaken the comp but are necessary when there is a shortage of comparable properties.

The expertise of a highly knowledgeable real estate agent can save you many hours of research and headaches. Most people don't really know how to compare real estate properties, which is why they hire an agent. Good agents take the work out of selling your home and give you a solid reason to understand why the agent is pricing the home at a particular price.

Location, upgrades, amenities, sale date, extras, foreclosures, short sales, and unique nuances of the home all affect the listing price and how your home is compared to a comp.

Taking a closer look at each of these shows exactly what people in your area might be looking for when it comes to buying a home. For instance, a higher price on a home that has a pool can indicate that this is a family neighborhood and buyers put an increased value on amenities that create family/social fun. Your home may not have a pool but it might have another type of amenity: tennis courts, gym, or putting green.

Agents look at both what is similar and what makes your home stand out. They search for the best characteristics to showcase and, when comparing your home to others that have sold, they look to see how yours stacks up from a buyer's perspective.

Reviewing the comps can provide a lot of insight about sales in your neighborhood. Physically viewing the properties can be even more eye-opening. Agents who routinely work in the neighborhood may have an excellent grasp of which homes will sell fastest. It's not a lucky guess.

They've been inside these homes and have seen the notable upgrades or the tragic flaws of a home. They also know which homes were foreclosures or short sales. Sometimes a foreclosure home is in poor condition. However, a short sale can be in much better condition. Both of these sales are at discounted rates. So, if a comp is used from one of these types of sales, your agent will take careful consideration to evaluate the distinct differences that may increase the value and, ultimately, the listing price on your home.

I do many BPO's "Broker Price Opinions" for banks and other lending institutions. I am instructed not to use REO (Real Estate Owned) "foreclosures" in my estimates of value when a home is scheduled for foreclosure unless the market is driven in that area to be majority REO/short sales. Still, those homes do come into play when determining the value of your home. Many buyers think that a market resale (non REO) should be sold at the same discount rate. Buyers must be educated on the differences. Your Real Estate Agent can help the Seller and the Buyer understand, and sometimes the buyers agent.

Call us, we understand the market and will do our best to help you sell your home and educate you on how to take advantage of the REO properties that are sold at a discount rate for your next home.

Virginia Lee Virginia@AtlantaHomeConnections.com 678-546-7387 Buford GA real estate and Lake Lanier real estate

Foreclosures in Buford Ga Real Estate fall in 2011 but not for long.

Foreclosure filings and repossessions fell to their lowest level since 2007 last year.

Total filings, including default notices and bank repossessions were down 33% for the year to 2.7 million, according to RealtyTrac, the online marketer of foreclosed properties.

One in every 69 homes had at least one foreclosure filing during the year, while 804,000 homes were repossessed. That's a significant improvement from the peaks reached in 2010 -- when 1.05 million homes were repossessed -- and the lowest levels seen since 2007.

In Buford Ga real estate had 1752 in 2011 and more than 4 million homes have been lost to foreclosure nationally over the past five years.

While the declines seem like good news for the housing market, where a flood of foreclosed homes has depressed home prices, much of it is due to processing delays caused by fall-out from the "robo-signing" scandal that broke in late 2010.

During the year, banks spent more time making sure paperwork was legal and proper, creating a backlog in the foreclosure pipeline. As a result, the average time it took to process a foreclosure climbed to 348 days during the fourth quarter, up from 305 days a year earlier.

"Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year," said Brandon Moore, chief executive officer of RealtyTrac.

However, the lenders are working through foreclosure backlogs in certain markets. He expects foreclosure activity to rise above 2011's level but remain below the peak hit in 2010.

Whether you are an investor interested in purchaseing for rental or looking to purchase a home for yourself, I would consider buying Buford Ga real estate and Lake Lanier real estate in 2012. Call us we are experts in the foreclosure sales.

Principle Reduction help for Buford GA and Nationally.

Despite many programs to help underwater homeowners, the financial crisis continues and foreclosures loom throughout the country.

Some experts say the housing answer is not just lowering interest rates but also actually reducing principal. In other words, these experts are encouraging banks to write down the principal and interest rates to current market value, which according to some experts would save homeowners $71 billion each year. CoreLogic reported that at the end of the second quarter 2011, underwater homeowners owed $709 billion on mortgages (much more than their homes were worth).

Real estate expert, Tanya Marchiol, who has appeared on TV, in print, and on Sirius Satellite Radio, writes in a recently released report, "In 2010 the nation's top banks paid out twice that amount in bonuses and compensation ($146 billion)."

Marchiol claims the savings to homeowners whose mortgages are upside down would create an economic boost to the economy -- creating jobs, reducing mortgage payments, helping investors–rather than the negative financial effects which ripple through the economy when a foreclosure occurs.

Marchiol writes that, "investors would typically be better off if servicers would agree to loan modifications with principal reductions rather than letting the home fall into foreclosure."

However, the thought of principal reduction and loan modifications are often scoffed at by big banks. Marchiol claims that's because servicers can actually make more from a property that is foreclosed on by the foreclosure-related fees. She points to the National Consumer Law Center and writes, "A servicer deciding between a foreclosure and a loan modification faces the prospect of near certain loss if the loan is modified and no penalty, but potential profit, if the home is foreclosed." This Marchiol claims is often not in the best interest of the mortgage investor. She explains that when a servicer forecloses on a home, it's the investor who is "saddled with all foreclosure-related costs: legal fees, maintenance costs on the property, sales costs, etc.".

That can be quite costly. The argument Marchiol makes is that it can be cheaper to simply write down principal to the current market value and avoid foreclosure. A win for everyone she explains, and the solution to "solve the housing crisis and jumpstart the economy".

However, quite obviously big banks have not viewed it this way and have resisted principal reduction or loan modifications.

Opponents of principal reduction argue that the main reason it doesn't work is because of what is referred to by economists as asymmetric information, according to information by the Federal Reserve Bank of Atlanta. This basically means that only the borrowers truly know if they will really default on a loan and let it fall into foreclosure. So, this theory speculates that without this information investors who back mortgages are essentially guessing which ones may or may not default and which ones truly need help as opposed to defaulting and trying for help simply because a principal reduction might be available.

The authors, economists, Chris Foote, Kris Gerardi and Paul Willen write on the website, "The argument for principal reduction depends on superhuman levels of foresight among lenders as well as honest behavior by the borrowers who are not in need of assistance. Thus far, the minimal success of broad-based modification programs like HAMP should make us think twice about the validity of these assumptions"

So far, programs like the Principal Reduction Alternative (PRA) have only really helped what would be considered a mere handful (53,000) of fortunate homeowners. Many millions more remain in need. PRA offers incentives to investors to reduce principal on certain mortgages. It's part of the Home Affordable Modification Program (HAMP) but PRA's reach has been limited partly because the program requires that the mortgage not be owned by Fannie Mae or Freddie Mac, which significantly reduces the number of homeowners who can qualify.

PRA launched in October of 2010 and requires that mortgage servicers evaluate homeowners for a possible principal reduction when they apply for a HAMP loan modification, (provided they do not have a Fannie Mae or Freddie Mac mortgage) and have a loan-to-value ratio greater than 115 percent. The investor who holds the mortgage must approve the principal reduction. Homeowners who are approved will earn one-third of the total reduction over a period of three years, provided they stay current on their mortgage.

Marchiol sums it up, "The American economy is chained to the crushing housing debt load. Chronic unemployment, foreclosures, and small business closings can all ultimately be traced back to the housing crisis."

She claims principal reduction is the answer to the housing crisis. "Now it is the banks' turn. Principal reduction will restore the American Dream, create jobs, and give the American family the ability to breathe again." 

We specialize in Short sales, foreclosures and Homeowner counceling. Please call me directly at 770-757-7200 It would be my pleasure to help any way I can.
 

 We’ve seen the effects of tight mortgage conditions over the last year. Existing and new homes sales have struggled and we are now left with sizable pent-up demand. Will this trend continue into 2012?

      For starters, consumer prices fell in October, meaning low wage workers and others struggling to make ends meet will find more affordability. Additionally, according to experts, this decline gives the Federal Reserve more wiggle room when it comes to policy making should the economy worsen.

 Why the decline, which was not wholly expected? The recent developments in the European debt crisis have had their affects on American markets.

 Yet, affordabilty is the name of the game for 2012. The National Association of Realtors reports that next year will be one of the best years on record for housing affordability. "Housing affordability conditions, based on the relationship between median home prices, mortgage interest rates, and median family income, have been at a record high this year," said Lawrence Yun. "Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970. Our hope is that credit restrictions will ease and allow more home buyers to take advantage of current opportunities."

NAR President Phipps says that "mortgage availability remains a real concern since the private market has yet to return.

While the housing market is still in recovery, we firmly believe that lower loan limits will only further restrict liquidity in mortgage markets."

Home sales could start to see some improvement in the new year, though. Existing-home sales are expected to rise 4 to 5 percent. "Once home prices turn positive on a sustained basis, consumer confidence will rise and help the broader economy to improve," Yun added. "If we could maintain sound and reasonable mortgage underwriting standards, the market would be able to avoid a future big boom and bust cycle, but mortgage standards remain overly stringent."

While mortgage rates may rise slightly, they will still be near historic lows. In fact, the Federal Reserve is committed to keeping rates low through mid-2013.

The latest reports on the remodeling market show that today’s low rates may be allowing stay-put homeowners the opportunity to refinance and funnel extra funds into home improvements. According to BuildFax the remodeling market is up 34 percent over September 2010. They report the top projects are roof remodels/replacements followed by deck and bathroom remodels.

Nearly two and a half years after the recession the economy and housing market continue to struggle, but recent stats and surveys are revealing that a change could be on the horizon for 2012. For now, affordability and interest rates are making for tempting deals for today’s buyers. We specialize in Short Sales and Foreclosure and have many homes for sale that desperately need a family. Call me today to view one of these valued homes! 

Studies over the past few years have shown a solid trend regarding home sizes. Buyers today want smaller homes with
smaller price tags. During the boom era in the mid-2000's, homeownership was about McMansions and spacious sprawls. The recent recession and continued ailing recovery have made many families rethink their budgets and lifestyles. A 9.1 percent unemployment rate hasn't "helped."

So, this question is posed. How much space does your family really need? This isn't a simple cut and dry question. Every family has different needs and dynamics.

Let's put things into perspective, though. Having a large, show-stopper home doesn't equate with family happiness. Many families in centuries past lived happily in one room cabins and small-scale homes.

There are social benefits to sharing tighter quarters. Some families feel that smaller homes force more together time, which means more time for bonding and strengthening relationships.

Smaller homes mean reduced costs across the board. Let's examine these for a moment. Property taxes are based on the value of your land and home. While more prestigious neighborhoods and homes within city limits typically pay higher taxes, remember that a smaller home in that same prestigious neighborhood will pay a smaller dollar amount in taxes each year. Maintenance costs are also lower. It costs much less to replace a roof on a 1,000 square foot house than it does on a 6,000 square foot one!

The same goes for home insurance and, let's not forget, the actual purchase price of the home. Reduced size means reduced costs.

Perhaps the most important item is reduced energy costs. Smaller homes take less energy (and money) to heat and cool. Plus, there are fewer rooms and that means leaving on fewer lights!

Today's standard home, according to recent statistics from the Census Bureau’s Survey of Construction, is 2,150 square feet. This is down considerably from the boom era seen just 5 or 6 short years ago.

These standard houses have 2.5 baths and 3 bedrooms. Can your children share a bedroom? You bet. It can teach responsibility, sharing, and how to get along with others. These are all great lessons to learn as a child.

These standard houses also feature a garage, central air, a fireplace, separate dining room, and three miscellaneous rooms. This doesn't sound like a one room shack! It's simply an adjustment from the McMansions that boasted media rooms, exercise rooms, 5+ bedrooms, and a bathroom for every member of the family.

Just 60 years ago, when many people's grandparents or parents were first entering the housing market, the average home was just 1,000 square feet. Quaint and charming, these houses made warm and loving homes.

If you're thinking of entering the housing market and are feeling trapped by shrinking budgets, just remember that a smaller house can be just as charming, functional, and full of love! 


Written by Carla Hill