South Atlanta Househound

I have been given an opportunity to join the team of Christy Crumbley and Randy Stamey in representing the community of Hickory Hills. 

Hickory Hills is less than 30 minutes to the heart of Atlanta but far enough away to provide a Southern Living sanctuary for you and your family.  The builders in Hickory Hills are David Sparks and Lifetime Homes.  These builders are truly the best in the business.  They only do quality work and they stand behind everything they do.  The quality is so good that David Sparks actually lives in Hickory Hills.  Both builders started out as trim carpenters so the amount of trim and detail in our homes is fantastic.  Our homes all feature wonderful outdoors living spaces and the designs are all Southern Living.  Home prices are from $500,000 to the high $600,000.  You can visit the Hickory Hills website at http://www.hickoryhillscommunity.com/.  To get directions to the neighborhood start here. 

Please come by and look up Christy, Randy or myself. 

You don’t have to be a tree hugger or environmental activist to want to be green.  In addition to reducing your monthly utility bills we have to recognize that the world’s energy sources are not unending.  Here are some ways that will not only reduce your monthly expenses but help to increase your homes value. 

Lighting

In addition to using florescent bulbs whenever possible, there are two other options for efficient lighting… light dimmers and motion sensors.  Light dimmers are switches that allow you to increase or reduce the light intensity in a room.  Be careful when using some dimmers with some florescent bulbs, they don’t play well together.  Motion sensors turn lights on and off automatically by sensing when folks enter and leave a room.  These are more effective when used in rooms that are used less often. 

Insulation

Good insulation is probably the number one way of increasing the energy efficiency of your house.   Insulation is rated upon an “R” value used to measure its ability to resist heat flow.  The higher the “R” value, the more effective it is.  Here are a few tips about insulation.

• One type of insulation maybe thicker or thinner, but if the R value is the same they should insulate equally.

• R value performance testing is done in a 70 F environment with no air movement. Ironically enough, when you need insulation the most you’re generally not in these ideal temperatures or conditions. This can result in the rated house insulation R value being higher than the actual effective R value.
• The average recommended R value of insulating material for basement insulation in North America is R-12.
• The R value in house insulation is substantially lowered when there are any air or water/moisture leaks.
• The standard R value for house insulation varies based on climate and temperature
• 1 inch of insulation is = to 30 inches of concrete.

Windows and Doors

Windows and doors account for 30% of the loss of heating or air conditioning.  Well sealed windows and exterior doors are just as important as insulation for preventing energy loss.    Wood frames are the most efficient in terms of energy loss but require painting or staining to keep them looking sharp.  Aluminum frames are very easy to maintain but are the worst rated in energy efficiency.  The best of both worlds is the aluminum-clad windows that have the easy maintenance of aluminum but the improved efficiency of wood. 

Cooling

Ceiling fans are much more energy efficient way of cooling than air conditioners.  Also using light colored drapes or blinds will help to reflect much of the suns rays away from your house.  You can save as much as 10% a year on heating and cooling bills by turning your thermostat back 10-15% for 8 hours a day.  This can be done without sacrificing any comfort by installing a programmable thermostat. 

Landscaping

The way you landscape your yard can drastically reduce your energy bills.  To provide more shade plant large growing trees, vines and shrubs on the south and west sides of your house.  In addition to adding curb appeal, careful planting of trees can add windbreaks which shield your house from the wind, to prevent heat loss.  Also planting trees or shrubs around air conditioning units can help to keep them cool, but they should not block airflow. 

Use an Energy Efficient Mortgage for your remodel

An energy efficient remodel will result in lower monthly bills but the start up costs are often higher.  If you are planning on remodeling a good option might be an EEM (Energy Efficient Mortgage).  To qualify for an EEM, the money you save on your monthly utility bills must be greater than the monthly repayment of the EEM, and your total savings must also be more than your total costs (including maintenance). When you are granted an EEM, you have 90-180 days to carry out the remodeling work. Additionally, you cannot be granted an EEM if you apply after remodeling has started, or if you apply after any other financing has been granted.  You can find more information on EEM’s here:   http://www.pueblo.gsa.gov/cic_text/housing/energy_mort/energy-mortgage.htm

Just because we’re having cooler temperatures it doesn’t mean cooler home sales.  The trick is to warm up and make your home a refuge from the cold.  While it is true that there are less buyers during the colder months, there is also less competition… and even fewer folks properly showcasing their home during this time of year.  In fact, most people who are shopping this time of year tend to be more serious buyer than some of the “shoppers” during the warmer months. 

Warm It Up

Think “Warm and Cozy”.  Before the buyers come through, adjust the thermostat to make it warm and welcoming.  Build a fire or turn on the gas logs.  The smell and crackle of a fire is always welcoming.  Add seasonal touches like warm throws on the couches or turning back the thick comforter on the beds. 

Make A Good First Impression

Your entryway or foyer sets the tone, so clean or paint the front door and polish the brass door knocker. If your welcome mat looks shabby replace it with a new one.  Wash the windows as the strong southern light can reveal grime and make it look like they haven’t been washed for ages. 

Let There Be Light

Encourage showings during the high daylight hours, if you show after work your practically in the dark.  Make the most of the light available by having the curtains and blinds cleaned and fully opened.  Clean all the light fixtures and put in the highest wattage bulbs they will safely take.  Before the house is shown, turn on All the lights. 

Can You Smell That?

The number one favorite is the smell of chocolate chip cookies.  Everyone likes the smell, and leave a few out on the counters for your buyers to nibble on.  Other great scents are cinnamon rolls, fresh baked bread, apple pie, apple cider or even a few drops of vanilla placed on the burner of the stove.  But be careful not to overdo it.  If  you run around with the bottle of air fresheners, burn scented candles and have a plug in each socket, it makes the buyers think your trying to cover something up. 

How About A Little Music

Create a relaxed atmosphere by tuning the radio to classical or light jazz.  You only want it playing in the background so you can barely hear it.   Even if love a good polka or metal rock, stick to classical or light jazz for the showing as they tend to have the greatest appeal to buyers. 

Make It Festive

While the holidays are over and yes, the Christmas decorations should come down, you can still use winter wreaths and dried arrangements around the door, foyers, kitchen, living room and hallways.  Another nice touch is to set the dining room with the good china and have something waiting for the buyers such as warm cider or bottled water. 

Your home has sat on the market week after week collecting dust.  Your in agony, frustrated, mad, sad and looking for answers.  But who’s too blame?  Here is my list of common reasons why your home might not be selling… and what you can do about it.

Price

Regardless of the circumstances improper pricing is the number one reason most homes are still sitting on the market.  I love to be optimistic… I’m a glass half full sort of fella!  It’s just human nature to try and get the most you can when selling your home.  Some of the reasons we tend to overprice our homes is that we often have a high opinion of our property and many of us are emotional and attached to our homes… even when we’re trying to sell them.  Some folks may need to sell for a certain price to pay off your mortgage.  You may have bought the house for X amount.  The home down the street sold for X amount just two years ago.  Unfortunately the market doesn’t much care about most of these reasons.  The bottom line is that the market will dictate how much your home will sell for.  If your home is overpriced and you need to sell then adjust your asking price. 

Market Conditions

To sell your home in a buyers market is more challenging than a sellers market for sure.  When trying to sell in a down market, there are four basic points to focus on

• Have your property competitively priced.

• Increase buyers perceived value of your property through staging, repairing any defects and keeping your home “show ready”.

• Have your home marketed to as many targeted potential buyers as possible through internet marketing, flyers, advertisements in the paper, magazines or television. 

• Be prepared to evaluate offers and negotiate on amenities, financing and concessions. 

Location

We’ve all heard “Location! Location! Location!” and that’s because location rules in real estate.  Homes in bad locations are hard to sell, tend to be on market longer and sell at a lower price than similar homes in good locations.  If your home is in an area that has high crime, bad schools, a poorly maintained neighborhood, crazy traffic, no shopping or high power lines then your options are somewhat limited.  A good agent can help you accentuate the positives and dampen the negatives.  One option might be to suggest that you use landscaping to screen a busy road from your property and minimize the effect high traffic has on your property. 

Condition

Price and condition are the two things that the seller can do something about.  There are many do’s and don’ts to get your house ready for the “Show”.  A good agent can advise you about where your time and money is best spent. 

• It has to be clean… spotlessly clean.  Buyers are much more likely to buy an immaculate house than if they have to “overlook” the messes.   It’s a pain to put your home back into “Show Condition” before you leave for work, but you are more likely to be less inconvenienced for a shorter period of time when your house impresses and sells faster.

• It has to be maintained.  If you are planning on selling your home “AS IS” then be prepared to price it for less.  When buyers have to factor in the items they have to fix up, then your price had better be lower or you won’t stack up with the other properties.  A new coat of paint is the seller’s best friend because it makes things look and smell fresh and it’s your best return on investment.

• Keep up with the yard work.  Pull the weeds, plant some flowers or pay the neighbor’s kid to cut the grass.  If your outside lawn looks unkempt the buyer may not even want to look inside. 

• Stage, de-clutter and de-personalize your home if possible.  You may love your home but you want the buyer to see the home as they want it to be.  Less equates to more value so pack away personal photos, get rid of the knick-knacks and eliminate your house of clutter.  Using warm neutral colors, keeping inside plants fresh and staging your home makes people want the image that comes with your house. 

Marketing

If potential buyers don’t know your home is available, then it’s not gonna sell.  No matter how nice your home is or how good your price is, no marketing equals no sale.  Long gone are the days when an agent could just list your property in the local multiple listing service and wait for another agent to bring forth a buyer.  Top agents utilize a multilevel marketing plan that includes newspaper advertisements, open houses, fully stocked flyers, Craig’s list, individual property websites, just listed post cards, virtual tours, placements in real estate magazines, placement on real estate websites and even television ads.   If your home isn’t being marketed in these ways or more, find an agent who will market your property the way it deserves. 

The Wrong Agent

Experienced, friendly, enthusiastic, and diligent agents with good marketing skills are crucial where the wrong agent will overprice your home, fail to screen qualified buyers, be unresponsive to you or other agents and keep you in the dark through the whole process.   With the thousands of agents to choose from in Henry County, you have the opportunity to be selective and find someone who works well with you and shares your passions, concerns and needs.  I think it’s always sound to interview several agents and find the right fit for you. 

Flexibility

A difficult seller who fights you every step of the way is incredibly frustrating to the buyers and agents.  If you truly want to sell your home try to be as accommodating as you can in terms of showings, open houses and agent viewings.  It may be inconvenient at times, but it goes a long way towards selling your home.  Be open and flexible about price, concessions and terms during the negotiations.  I’ve had a deal fall through over a $500.00 difference in price that in the end resulted in waiting an additional 3 months for another offer that was $1000.00 lower than the original offer. 

Lastly there are just a few hot buttons to avoid:

Don’t do “showing by appointment” unless your home can be listed as a luxury property.  There is so much inventory in Henry, Clayton, Butts and Spalding Counties that a majority of buyers agents will skip your house if they have to coordinate and schedule a time. 

Eliminate all odors and funky smells.  The house that smells doesn’t sell.  Most sellers are not aware of how their pets, smoking or unique foods can drive away potential buyers by the dozen.   

Don’t be home during a showing.  Take a walk, visit friends or go to another room if you can’t leave.  Potential buyers won’t feel comfortable with you in the same room as they view your house.  

Before I get to the politically incorrect heading, let me ask some questions to the folks out there who have listed their property for sale. 

• Do you know your agent? 
• Is he or she a family friend? 
• Did someone refer your agent to you? 
• Did you check on the quality of work that your agent does?  
• Do you trust your agent?

By nature I’m a trusting guy, it’s how I’m wired I guess.  The problem for me and for many of you home sellers out there is that we all have to know when trust ends and common sense begins.   After all, you are dealing with one of the largest sales you will make in your lifetime… it should be handled properly. 

I have been working with this young couple trying to find their first home.  I’m searching the MLS (Multiple Listing Service) trying to find the perfect home with everything my clients desire.  They would like a 3/4 bedroom, 2/3 bathroom home with about an acre of land in Henry or Butts Counties and they would like to be under $200k.  I’m looking at many listings… as I’m searching I come across this gem:

Here is where I start to get bent.  Did this person actually think this picture would entice anyone to come and view this home?  This property is listed for $180k, so were not talking about a hole in the ground.  I’m dumbfounded.  I find it hard to believe that this agent actually uploaded a picture of trees.  I can’t even see the house!  The listing should say “Trees for sale, $180k… comes with a free house!” 

My feathers are a bit ruffled but I shake it off.  It’s a busy day and I have to stay on task.  A few houses down my list is…

Now I’m just plain mad.  I see a lot of the “broker provided photo” pictures in the low end or bank owned properties but this home is listed as a 4 bedroom, 3 bathroom home for $196k.  I’m asking myself what on earth this agent was thinking?   Where the first picture was sloppy this is just plain lazy. 

Now I’ll grant you that there are times when I’m not the sharpest tool in the shed.  I’ve had more than my share of “Hey Man… watch this!” moments.  Once, I actually answered my wife when she asked me how her butt looked in comparison with her new jeans.  While I know that those in glass houses shouldn’t throw stones, I think these examples show how these realtards have goofed up the basics.  The list of items that make up a real estate transaction are just about endless.  If your agent can’t even get the pictures right, chances are they’re not doing the other parts of the job very well either.  We’re not talking about how well they marketed the property or their negotiating skills in working out the deal.  We’re talking about taking pictures. 

So my tip to all you homeowners out there is to avoid the realtards.  Ask questions.  Be participative in how your property is being marketed.  See for yourself how your agent is listing your property.  Ask for printed copies or websites that your property is listed on.  Once these terrible photos go up, they are out there in cyberspace forever being fed across the internet.  If your agent drove by your house and stuck his digital camera out the window and then stuck it on MLS, then you have been a victim of a realtard “drive by shooting”.  What to do?  First tear, them a new one.  Next, do not remove your foot from his or her posterior until the photos are replaced with something decent, promptly.  A picture really is worth a thousand words, so be careful about what your home is saying. 

I would like to wish you all a Merry Christmas. During this time of family and giving, I would like to express my thanks to the people of the armed forces. Yes, I know this is a real estate blog and while I generally try to keep my politics out of it, this isn’t about politics. My brother in law is a Marine and at times like now I think of him and what he and his brothers in arms are sacrificing, for us. Regardless of which side of the war you are on, I feel we should still support our military that is supporting us. I’m not a big fan of videos on my blog but this one truly pulls on the heart strings. This video was made by a 15 year old girl, Lizzie Palmer. It’s about the soldiers… not the war.

Please keep them in your hearts this Christmas season.

I got a phone call from a past client who has a ARM (Adjustable Rate Mortgage) that is about to reset and his payments are going through the roof.  He asked me if I know about all the stuff on the news and what it really meant.  I did some digging and found that most of the hubbub really comes down to two programs.  The first is the “Hope Now Alliance” program and the other is “FHA Secure”. 

Hope Now Alliance

The Hope Now Alliance is a group of private companies and the government working together.  They want a five year freeze on interest rates for those who can now afford to keep paying their mortgages, but would be at risk of foreclosure if their adjustable rate mortgage ballooned at the next reset point.  This group is very new… they are only taking baby steps at this point.  The website is http://www.hopenow.com/ but it is not overly helpful yet.  One of the key factors for this program is that it’s only available to those who ASK for it.  So if you don’t contact your lender, someone through the website or call 1-888-995-HOPE then you won’t get any additional information.  If you do contact the number you will be matched up with a HUD approved credit counselor who will help you begin the process. 

FHA Secure

The Federal Housing Administration (FHA) has a program called FHA Secure which gives homeowners with Non-FHA Adjustable Rate Mortgages (ARMs), current or delinquent and regardless of reset status, the ability to refinance into a FHA insured mortgage.  FHA Secure is part of the underwriting process and not an actual loan program.  That means you need to refinance your mortgage to see if you qualify.  With FHA Secure the lender will not automatically disqualify you because of delinquent status on your loan.  Here are the qualifications for the FHA Secure:

• 3% equity in your home
• Sustained employment history
• Your income must meet qualifying guidelines
• You must have a history of timely mortgage payments before the ARM reset
• Your ARM must have reset between June 2005 and December of 2009

If you would like more information about the FHA Secure Program you can visit the FHA FAQ at http://www.fha.gov/about/fhascusqa.cfm.  I can’t tell you who to talk to for your mortgage needs but I can give you a couple folks that I trust and you can use them if you wish.  Travis Evans with Brayden Capital at (404) 713-8662 or Ebony Hairston with First Service Mortgage at (404) 767-1111.  They are both knowledgeable about these programs and can be a source of good information if nothing else. 

So we just had our office Christmas party here at Gateway Realty.  I’m sitting around with my fellow agents just chatting and running our mouths.   Yes… I know we agents are blessed with the gift of gab.  Someone starts talking about how they looked up a property for a client they are working with and how it sounded so good in the description and when they got to the property it was a joke.  Of course this started us all throwing out our own war stories about goofy real estate adspeak and how the ad says one thing but means another.   

I realize we real estate folks are glass half-full sorta people but sometimes we do go a wee bit overboard when “creatively” describing our property listings.   Today I’m in a funny mood and I thought I’d share some of the zingers with you all.  To my fellow agents out there… yes… I am most definitely making fun of us all. 

While I am poking at us, there is also a serious side of this issue.  “Puffing” is a real estate term used to describe a property in more poetic or subjective terms and generally is harmless.  What all buyers need to be aware of is how to tell the difference between puffing and misrepresentation.  If a home is listed as having a fantastic view, that is an opinion and is puffing.  If a home says it has a fantastic view of the lake and you have to stand on the roof to even see the lake, that is misrepresentation and is illegal.  Remember that “puffing” is one persons opinion rather than fact.  At the end of the day the only opinion that should really matter to you should be yours and the true facts about the property. 

In one way or another credit is in the news a lot lately.  From mortgages to credit cards and car payments, your credit affects your life in so many ways.  As you can see from the graph to the right, your credit score can cost or save you a ton of money.  Here are some tips to keep you in the green. 

1)  Pay Your Bills… ON TIME

While this seems rather simple it is actually crucial.  Your payment history accounts for 35% of your total FICO score so this simple act has the greatest single control over your credit.  An occasional missed payment here or there isn’t huge but being consistently late will affect your score in a big way.  For many folks it’s not that the money isn’t in the bank… it’s that they just hate to sit down and  pay bills.  Make it part of your monthly routine to get all your bills paid on or before the due date. 

2)  Reduce Your Credit Card Balances

Having credit cards that are near their limit crushes your credit score.  A big factor in the FICO score is the credit card balance versus the credit limit of the credit card.  A good rule of thumb is to keep credit card balances below 25% of the credit card limit of the card.   

3)  Correct Credit Report Mistakes

Your credit is only as good as what shows on your credit report.  Review your credit report from the Big 3 (Equifax, Experian and TransUnion) once a year and a couple months before you shop for a loan.  If you find a mistake contact the creditor first and if it is still not corrected, then contact the appropriate agency.  Unfortunately it can sometimes take months to correct a mistake. 

4)  Pay Off The Debt, Don’t Move It Around

The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.  Beware of adding new credit cards also.  For one their “special introductory rate” often ends in a few months and then the real rates kick in.  Additionally, you should only open new accounts when you really need them because too many new accounts will lower your average account age, which could actually lower your score by 10 points.

5)  Don’t Close All Your Unused Credit Cards

To begin with, closing an account doesn’t make it go away.  By closing all your unused credit cards you risk raising your loan to balance ratio.  I’m not saying you have to keep them but don’t close the accounts until after you get the loan or the financing you need.  You can cut them up or stick them in a safety deposit box if you’re worried you’ll start using them again.  Close the accounts when your credit balance to credit limit will not take you above 25%.

To Order A Credit Report Or Correct A Mistake

Experian  (888-397-3742)
NCAC
PO Box 9556
Allen TX 75013
888-397-3742

Equifax Information Services  (800-685-1111)
P O BOX 740256
Atlanta, GA 30374
800-997-2493

TransUnion  (800-916-8800)
Customer Disclosure Center
Trans Union Consumer Relations
PO Box 2000
Chester, PA 19022-2000
800-888-4213 

Let’s be  honest.  The most significant factor in selling your home is price.  Yes… staging is important.  Yes… neighborhood and schools are important.  Yes… location is important.  There’s a ton of factors that affect price, but at the end of the day it all comes down the “principle of substitution”.  If I can buy your 3 bedroom, 2 bathroom house for $170,000 or I can buy another 3 bedroom, 2 bathroom house down the street for $150,000 and both houses are about the same… guess what… I don’t think your house is selling today.  

When pricing your home there are three prices we should look at.  To sell it in 30 days, to sell it in 90 days and to sell it in 6 months to a year.  First decision is how quickly do you want to sell.  I would suggest that if you are going to price your home to sell in 6 months to a year you should wait and not put your home on the market now.  There is a glut of homes on the market in Henry, Butts and Clayton counties currently.  When you leave a house on the market for what seems forever it just makes folks think something is wrong with your house. 

The biggest problem with setting price is most folks start out trying to price their house to sell it in a year and want to sell it in a month.  Unfortunately that is not the reality of the buyers market we are currently experiencing. 

Understand that as a sellers agent I have fiduciary responsibility and I want to sell your home for the most money possible.  It benefits both of us.  That said, I am honest and I won’t just “buy” your listing by giving you an inflated sales price so you will choose me to list your home.  You may or may not like the price I suggest but you can always count on the fact that I have your best interest at heart.  Here is a few tips as to how to property price your home. 

Determine Your Home’s Market Value

The three most common ways to estimate value is to hire a professional home appraiser, evaluate your agent’s CMA (Competitive Market Analysis) and use online valuation tools. 

• You probably don’t need to hire a professional appraiser unless your home is unusual or in an area where there haven’t been many recent home sales.
• You should interview at least three successful real estate agents who sell homes in your vicinity. The reason to interview multiple agents is to cross-check their evaluations of your home’s market value.  When you interview the agents, watch out for an agent who “high balls” your home’s value, hoping you will list with him or her because they suggest a high sales price in order to “buy” your listing. 
• Be very careful when using the online valuation tools.  These sites use computerized data crunching tools and are typically based upon public records — tax assessments, deeds, demographics, property characteristics and sales price trends, but can also include data from mortgages, multiple listings and appraisals.  They only give users a “ballpark figure” of what their home is worth rather than a well-researched and unbiased opinion of value. 

Know Your Competition

• Grab the flyers from the other houses in your neighborhood and determine what their listing prices are and how your house compares to theirs in amenities.  

What Are Your Unique Selling Points

• Is your house in a great location?
• Is your house better maintained than most?
• Does your home possess desirable amenities?  Spacious updated kitchens, granite countertops, keeping rooms, updated bathrooms and master suites are all popular upgrades.

Know the Market

• Selling in a buyers market is very different from selling in a sellers market.  We are currently in a buyers market, but all real estate markets fluctuate.  During a sellers market you can list your house just over the prices of recent home sales in your neighborhood.  During a buyers market be prepared to price your home more competitively, budget in closing or buy-down concessions.  I always prefer to market financing options during a buyers market. 

Set Your Price

• Hopefully you will use an agent to help you with this task.  Using the tools and information above, you should set a price both of you and your agent feel comfortable with.  If you and your agent disagree on price, a possible option is to start at your price and if no offers or interest in X number of days then move to the agents price. 

Monitor Your Price

• The interest in your house is a good indicator of how well you priced your home.  If your not getting enough showings then chances are your price is too high for them to bother even looking at your house.  If your getting showings but no offers then it may be time to look at a price adjustment or some concessions on financing or closing costs. 

As I said above pricing is key, but there are several things you can do to make your home more valuable.  Effective marketing, staging, property preparing your home to show and keeping your home “open house ready” are all crucial to getting the most for what your home is worth.