As we all cling to hope for the future of the real estate market, some good news has come our way.  In his letter to the shareholders of Berkshire Hathaway, Warren Buffet said “within a year or so, residential housing problems should largely be behind us.”  This optimistic outlook gets us excited as well!

Nationally, home values have readjusted back to normalized levels.  Fixed mortgage rates are still sitting near record lows and the number of homes available for sale is providing home buyers with more options.  Also encouraging are indications that the high end of the housing market could begin moving again as luxury financing becomes more readily available.

Despite high unemployment and looming foreclosures, experts maintain their expectations that the economy will grow in 2010, while the government carries on its search for solutions to help both troubled homeowners and the unemployed.

USDA Funding likely to run out by April

In a letter to participating lenders, the Housing and Community Facilities Programs of USDA, stated that “program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010.  Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds.”  This is because it is not certain when additional funding will be available.”

For those of you looking to purchase a home using this program, the time to act is now, before the funds are depleted.

Post contributed by Shane Siniard with WR Starkey Mortgage.

Exterior improvements give more of a return when remodeling

There is an annual report that examines the cost versus value for home remodeling.  The report is helpful for those who are considering making improvements to their homes, especially if their home is one that they consider selling in the near future.  Historically, bedrooms and bathrooms are where people consider spending their money but the return on the remodel investment is not necessarily there.

According to the 2009 Remodeling Cost vs. Value Report the best return for your money are exterior improvements that often are lower cost projects to begin with.  Adding decks, replacing siding, new doors and windows are among projects that recoup the most money when re-selling a home.  The return on these projects is typically 80% or more.

The annual report shows how important first impressions are.  If you are considering selling your home make sure that the exterior is as eye catching as it can be.

Click here to learn more about remodeling costs versus value at The National Association of Realtors’ website.

Take time to choose the right broker when selling your home

When preparing to sell your home it is important to find a real estate professional that will best suit your needs.  A warm handshake and a friendly smile is all well and good but if you want to sell your home pick a broker that is experienced and knowledgeable, someone that will do the best job for you.  When selecting your real estate agent here are a few things to keep in mind:

Data.  Get a prospective Realtor to bring in a copy of what they have listed and closed.  They can present you with an MLS report that displays their inventory.

References.  Get references from a potential Realtor and call them.  Find out what other people’s experience with a particular Realtor has been.

Price.  Get an evaluation of your property.  A solid real estate professional will be able to detail what has been selling and for what price.  He will be able to evaluate your home and your location, giving you a value for your home that will help sell it not deter people from looking at it.

Plan.  What does your Realtor plan to do for you in terms of marketing, sales, listing, etc.  Make sure he has a plan for your house and find out what he is willing to do to get it sold for you.

Real estate is often a person’s most valuable asset.  Do your legwork and choose the best broker for your home.  He or she should be a salesperson.  If they can sell themselves to you perhaps they are halfway to selling your home for you as well.

As a northwest Georgia real estate agent, I have 22 years of full-tim sales experience and a team of highly qualified professionals ready to meet your needs.  I’d love to have the opportunity to meet with you and show you how I can help meet your needs.

New FHA Appraisal Mandate

Value on a home as provided by a certified real estate appraiser in a written report is critical to a mortgage loan.  Effective February 15^th, a change in FHA appraisals takes place.  Essentially FHA has implemented the same rule as FannieMae and FreddieMac, which are conventional loan agencies.  FHA is a government agency.  Prior to this new FHA mandate a lender could order an FHA appraisal from a certified FHA appraiser of their choice, who typically was someone with whom they had an established relationship.  Not anymore.  Beginning Monday the 15^th, all FHA appraisals must be ordered from an entity, an independent company, who maintains a roster of appraisers approved and certified by FHA. This mandate by FHA affects all lenders nationwide.  Failure to adhere and comply with this mandate will result in administrative sanctions, something no lender originating government loans wants to have happen.

HUD, and therefore FHA’s intention, is appraiser independence from any influence pertaining to value, condition of the property, etc. In order to ensure appraiser independence, lenders who are FHA approved are prohibited from compensating, choosing, or even retaining an FHA roster appraiser.  Even substantive communication between the lender and appraiser is no longer acceptable in order to avoid conflict of interest or even the appearance of such. The intent is to prevent a lender’s influence on an appraiser which could have an impact on valuation of a home. Because mortgage lenders are typically compensated based on production, and an appraisal report is essential to loan approval, FHA has begun to use these safeguards in an effort to protect the integrity of the loan collateral.

Those of us in the residential real estate industry have seen significant changes in the last year and a half.  This is yet another change, and while it sounds daunting compared to what we’ve been used to, it remains to be seen if it creates obstacles.  My expectation is we’ll likely be assigned appraisers we already know and who understand how to help us work though any issues, just as they always have.  Some turbulence is to be expected and I will continue to always be here for you to work through any appraisal problems we encounter.

Post submitted by Rena Rogers with Pine State Mortgage, (770) 387-4504

First Time home Buyer Tax Credit Website

For those of you with questions about the first time home buyer tax credit, you’re not alone.  With so many changes and stipulations surrounding this credit, there are more and more confused potential home buyers and recent homeowners.  This website was created by Better Homes and Gardens Rand Realty to help you determine whether or not you may be eligible to apply for this credit.  They have even created a questioinnare that answers whether or not you are eligible and for how much.  We hope this will help answer your questions regarding this legislation!

http://www.homebuyertaxcredit.com/

 Carol will be working Saturday Feb. 13th from 10-5 at the Arbor Place Mall Sears in Douglasville if you want to stop by. 

New Guidelines for Short Sales-Northwest Georgia Real Estate

On April 5, 2010, a new program will go into effect to make it easier for a homeowner going through the process of a short sale.  The Treasury Department is urging participating servicers to follow through with short sales for homeowners that are facing foreclosure because they don’t qualify for a reworked mortgage.

To help this program along, the government is offering an incentive payment of $1000 per completed short sale.  Servicers will also get $1000 for each deed-in-lieu of foreclosure.    Subordinate lien holders will be paid to release their claims on defaulted properties, up to $3000 of the short sale proceeds as long as the primary investor agrees to share the earning, and for this concession, the investor will also receive up to $1000 from the Treasury.

For those second lien holders who want more than the $3000 cap to relinquish their stakes, the Treasury said they could pursue a short sale outside of the federal program.  Homeowners who agree to a short sale or deed-in-lieu of foreclosure will get up to $1500 to help with relocation, and must be “fully released” from any future liability, according to the guidelines.  In addition to solidifying incentive payments, the newly published procedures bar servicers from forcing short sale facilitating agents and brokerages to reduce their commssions as a prerequisite for approving the transaction.

So, in a nutshell, the treasury is now stepping in and putting money towards the negotiating of the first and second mortgages and providing incentives for the investors to accept and close on short sales in a more timely manner.  This will help prevent foreclosures and provide homeowners with some cash as closing.

As you can see short sales are a complicated process and we are here to help.  We have experienc in doing them and see how they are a viable solution to avoid foreclosure.  Call us if we can help answer any questions about the process.  Also, you can check out http://avoidbankforeclosurenow.com to read more about this process.

The Federal Housing Administration (FHA) announced several important changes last week that will help ensure it’s long-term financial soundness.  The biggest change is that they will raise the minimum down payment for its least credit-worthy borrowers.

In an effort to increase the agency’s finances, borrowers with a credit score below 580 will be required to put down at least 10%.  Those with a score above 580 will still be able to put down the current 3.5%.

Additionally, the FHA has increased the upfront mortgage insurance premium from 1.75% to 2.25%.  The agency is also expected to seek congressional approval to raise annual mortgage insurance premiums above the current .55% maximum over the life of the loan.

To see the rest of the FHA changes, visit REALTOR.org.

Now might be the best time to lock in a low mortgage rate

Low interest rates have been gracing the real estate market with their presence for the past year but the word on the street is that they won’t be here much longer.  While mortgage rates aren’t going to skyrocket out of sight, it is doubtful that they will decrease and certain that they will steadily begin to rise.

For those wishing to lock in at below 5%, the time just might be now or never (or at least for a very long time).  This past week, the first week in January, the average 30 year fixed mortgage rate was 5.09%.  The general sentiment among economists is that rates are not going anywhere but up from here.

The strengthening of the economy equals less chance for discounted rates.  If you want to refinance or purchase real estate, now is definitely the best time to do so.

For more information on mortgage rates click here to look at a recent article from CNNMoney.com.