Adorable ranch on almost an acre! Rocking chair front porch. This home has a new stove, new bathroom tile and has been freshly painted. Great school district.  Priced at $115,000.  Call us today for more details at 770-606-0054.

Important Changes to Mortgage Underwriting

RisMedia just published this blog post regarding important mortgage underwriting changes that could affect many buyers.  Mainly, buyers need to be aware that lenders will re-pull their credit scores, pay stubs, validate social security numbers and verify intent to occupy just before closing.  It is imperitive that potential buyers be honest and up front with their information with the initial application and not make any major purchases or do anything that would affect their credit scores or job status before closing.  If lenders find potential buyers have mis-represented their situation in any way they can potentially be charged with fraud.  Read on for more details

FHA Proposed Changes

Currently FHA has an open comment period on considering changing some of the basic parameters for it’s mortgage loans.  For one, they are considering reducing the amount seller’s contribute to closing costs (seller’s concession) to 3% which would mean buyers would need to come up with the remaining monetary amount of these funds.  Additionally, enforcing credit score minimums of 500 to 580 depending on the loan to value ratio is also being considered.  The comment period runs through August 12th.  Any changes will likely not go into effect until October of 2010.

We’ll keep you posted on any changes we hear along the way.

10 Questions to Ask Your Realtor about Selling a House

1. Are you a full-time professional real estate agent? How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have?
   Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.
2. Do you have a personal assistant, team or staff to handle different parts of the purchase? What are their names and how will each of them help me in my transaction? How do I communicate with them?
   It is not uncommon for agents who sell a lot of houses to hire people to work with them. As their businesses grow, they must be able to deliver the same or higher quality service to more people.
   You may want to know who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team. If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing?
3. Do you have a Website that will list my home? Can I have your URL address? Who responds to emails and how quickly? What’s your email address?
   Many buyers prefer to search online for homes because it’s available 24 hours a day and can be done at home. So you want to make sure your home is listed online, either on the agent’s Website or on their company’s site. By searching your agent’s Website you will get a clear picture of how much information is available online.
4. How will you keep in contact with me during the selling process, and how often?
   Some agents may email, fax or call you daily to tell you that visitors have toured your home, while others will keep in touch weekly. Asking this question can help you to reconcile your needs with your agent’s systems.
5. What do you do that other agents don’t that ensures I’m getting top dollar for my home? What is your average market time versus other agents’ average market time?
   Marketing skills are learned, and sometimes a real estate professional’s unique method of research and delivery make the difference between whether or not a home sells quickly. For example, an agent might research the demographics of your neighborhood and present you a target market list for direct marketing purposes.
6. Will you give me names of past clients?
   Interviewing an agent can be similar to interviewing someone to work in your office. Contacting references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.
7. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our listing agreement?
   In the heavily regulated world of real estate, it can be difficult for an agent to offer a performance guarantee. If your agent does not have a guarantee, it does not mean they are not committed to high standards. Typically, he or she will verbally outline what you can expect from their performance. Keller Williams® Realty understands the importance of win-win business relationships: the agent does not benefit if the client does not also benefit.
8. How will you get paid? How are your fees structured? May I have that in writing?
   In many areas, the seller pays all agent commissions. Sometimes, agents will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of costs from any agent you contemplate employing.
9. How would you develop pricing strategies for our home?
   Although location and condition affect the selling process, price is the primary factor in determining if a home sells quickly, or at all. Access to current property information is essential, and sometimes a pre-appraisal will help. Ask your agent how they created the market analysis, and whether your agent included For Sale by Owner homes, foreclosed homes and bank-owned sales in that list.
10. What will you do to sell my home? Who determines where and when my home is marketed/ promoted? Who pays for your advertising?
    Ask your real estate agent to present to you a clear plan of how marketing and advertising dollars will be spent. If there are other forms of marketing available but not specified in the plan ask who pays for those. Request samples or case studies of the types of marketing strategies that your agent proposes (such as Internet Websites, print magazines, open houses, and local publications).

We would love to share our answers to these questions with you.  Just let us know when you’re ready and we can make an appointment for you to interview us to sell your home!

Opting for new home construction

Whether to buy an existing home or have one built is yet another decision to make during the home-buying process. If you decide to go with new construction, a real estate agent can be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other terms with the home builder.
Below are some basic pointers to prepare you for the journey ahead.

Selecting a builder
Shopping for a large production or custom home builder can be a daunting task. Start by defining what architectural styles appeal to you and then seek out the builders in your area who offer those styles. Due diligence is essential. Ask friends for referrals to get firsthand accounts; verify the builder’s state license status, if applicable; and check whether they’re certified by the National Association of Home Builders.

The builder representative and your real estate agent
A builder representative’s ultimate goal is to sell you a home. His or her role is to provide a wide range of information to help you in your decision-making, from building restrictions, roads and easements to inspections, warranties, rebates and upgrades. A real estate agent knowledgeable in new-home construction will be able to help you wade through all the data and point out the downsides and upsides of each line item. Your agent also can look out for your interests in reviewing the builder’s contract, which often contains more legal jargon than consumer-friendly language.

It’s all about timing
Market conditions greatly dictate a builder’s incentive to make a deal you cannot refuse. When a builder has inventory on his hands, his carrying costs start adding up. When this happens, a builder might be more amenable to strike a favorable deal, whether it’s throwing in upgrades or taking a bit off the asking price. A real estate agent can help you know when market conditions are right for these benefits. Also, watch for builder close-out sales. Builders promote these special events when a new subdivision is near completion but empty inventory still remains.

A word about paying up
While there are always exceptions, most builders require a deposit when a purchase agreement is signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to closing, unless the agreement states otherwise, you will lose that money. Make sure you understand every detail in the builder’s contract before signing it.

Give us a call today at 770-606-0054 if we can help you buy a new construction or an existing sale!

Location, location, location

Where you buy not only affects the home’s current and future value, but it also affects your lifestyle. Your agent will be able to conduct a more targeted home search if you outline your preferences in neighborhoods and nearby amenities. Here’s a checklist of items you should consider and communicate to your chosen real estate agent.

* Urban, suburban or rural
* Commute time
* School districts
* Desirable neighborhoods
* Proximity to the airport
* Proximity to restaurants and retail
* Access to major highways and thoroughfares
* Access to public transportation
* Health care facilities
* Parks and recreation
* Length of time you plan to live in the home (Your agent should be knowledgeable about growth trends and projections that could affect your investment.)

Monies Needed in a Real Estate Transaction

Although every situation is different, there are a few common out of pocket costs associated with buying real estate.  While this is not an exhaustive list, we hope it will help you as you prepare to buy a home.

Most sellers require an earnest money check, typically between $500 and $1000 depending on the cost of the home, in order to show you are a serious buyer.  Additionally, in order to have peace of mind about the investment your are making, you’ll likey want to have a home inspection and termite letter done on the property.  Home inspections usually run anywhere between $350 and $400 while termite inspections are about $45-$75. 

Lenders have their own requirements as well.  An appraisal will need to be done on the home which is usually around $350.  Additionally, a credit report will be required for $75 in order to qualify you for the loan. 

Beyond these expenses, a good faith estimate will be performed by your lender which will detail all of the costs around the purchase of the home you desire.  Most of these costs are included in the closing costs and will be part of the final price tag on the home you buy.

Please don’t hesitate to give us a call if you have any questions regarding this transaction.  We work in this business everyday and keep up with the changes in our market to know what costs you can expect.

Common Misconceptions of Using a Real Estate Agent

Many people facing the task of buying or selling a home often wonder whether or not they should utilize a real estate agent for the transaction.  While some prefer to go at this task alone, we want to try to shed some light on misconceptions people have of agents that may still have some anxiety over the issue.

1.  I can do the same marketing an agent can do to sell my home

While there are several marketing tools anyone has access to, an agent has a huge vested interest in online and public marketing.  Because agents belong to brokers, most of those brokers have purchased ad space and priority on listing sites.  This can be a huge advantage in the exposure your home gets.  For example, we only enter your listing into about 4 websites.  However, because of our broker partnerships, those listings are then extended to hundreds of other real estate sites for greater exposure.  Not only that, but we have a team member (listing and marketing manager) that is committed solely to marketing your home.  That way, you can go on with your life while we work to get your home the broadest exposure possible.

2.  Agents are just in it for the money

As in any business, some people look solely to the bottom line in their business.  This can leave the public feeling ignored, used and mistreated.  As someone who has been in the business for over 22 years, I’ve seen some of this attitude.  However, my desire since day one is to make sure my clients are the #1 priority.  Any good agent will listen to your desires, concerns and reactions to different options and work with you to find the best possible situation for you.  I only want to get paid if I’ve done a good job for my clients.  I love getting new business from past client referrals because that helps me know I’m doing what it takes to build a reputable, helpful and effective business.

3.  Agents just want the buyer to buy the homes the agent has listed on the market

While this might have been an underlying motive in the past, Georgia law has helped get rid of this.  In our state, every agent has access to every other agents homes.  That is why we have both buyer and seller agents.  One agent lists properties and another sells.  Sometimes it works out that you use the same agent for both sides of the transaction but ultimately an agents primary responsibility is to get you in the home you want-regardless of who is selling it. 

Regardless of your fears or worries in buying or selling real estate, finding an agent you can trust is extremely helpful.  So, make sure you do your research and compare agents history, volume of sales and past clients success before you commit to utilizing their service.

With our current economy many people have stayed put in their starter homes as others have downsized from larger square footage.  Regardless of the reason, the average American home grew smaller in 2009 compared to 30 years of growing in size previously.  There can be some bright spots to living in a smaller space, like a lower utility bill and closer family connections.  This article gives some great tips for how to maximize a small living space and how to see the good side of living with less space.