10 Rules Of Owning A Home

10 Rules of Owning a House


Owning a home is a tremendous joy--and a big responsibility. Here are 10 rules home owners should live by.





1. Take care of your home

Experts recommend budgeting 1 to 3% of your home’s value for maintenance and repairs each year.

2. Build equity

Making an extra principal payment when possible can decrease the interest you pay over the life of your loan.

3. Make a good first impression

Keep your front entrance clear and welcoming. Curb appeal improves the neighborhood and enhances your home’s value.

4. Be properly insured

In most cases you only need to insure the replacement value of your home and personal property, not the land.

5. Love the neighborhood--not just the house

And if you’re not happy with your current neighborhood, start thinking and planning where to move next.

6. Make improvements

Statistics show updated kitchens and baths often make a difference in a sale.

7. Safety first

Install smoke and carbon monoxide detectors to ensure the security of your family.

8. Beat your bills

Improvements in the insulation of windows, doors, and storm doors can save energy costs and increase your home’s resale value.

9. Go neutral

If you’re thinking of moving in a year or so, choose light, neutral paint colors so there’s less work when you sell.

10. Know when it's time to move

Over time people often outgrow a house or neighborhood. If you’re thinking of making a change, please call or email to discuss the next steps.

What Makes For A Winning Offer?

Get pre-approved
Before writing an offer – and ideally before you even begin your search – meet with your bank or other financial advisor; the one who will be giving you your mortgage, and get pre-qualified or pre-approved. When it’s time to put forth an offer, the seller will know it’s serious.

Understand the local context
List prices are often subjective. Look to your Better Homes and Gardens Real Estate Metro Brokers sales associate to advise you on pricing strategy. In the end, it’s important that you know the real estate situation yourself to determine if the property is fairly priced, based on comparable, recently sold properties. There’s no rule of thumb that says going in under asking is expected. Market conditions will dictate the selling price. Keep in mind that homes will also occasionally be under-priced to attract multiple offers. This circumstance may call for a bid over the initial asking price.

Understand and adjust to the seller's interests
Asking the right questions prior to writing an offer can often make the difference between an accepted offer and a stalled negotiation. Some contract terms may be of great significance to the seller, whereas only a slight inconvenience for you. Should the seller want to rent the place back, for example, for a few days or weeks after escrow, your written flexibility on the move out/in date could close the deal in your favor.

Make a strong deposit part of your offer
You'll want to submit an earnest money deposit when writing an offer, payable to a reputable escrow company, to be delivered by your agent no more than three business days after the acceptance of the offer. Even when delivering an offer below asking price, offer a large deposit if possible, and it will pay dividends in the end. Down payment strategies however may vary. In some areas, a smaller deposit is the norm. Regardless of location, a higher deposit will most likely strengthen your negotiating power.

Provide an appropriate time for the seller's response
Time is of the essence once you decide to take the plunge, especially regarding a newer listing in which the risk is high that other buyers will potentially submit offers. Typically, the seller is given until 5pm on the third day from receipt of the offer to respond, unless you write in a different date and time. If the offer is strong, speed up the response time. Your Better Homes and Gardens Real Estate Metro Brokers sales associate can advise you on what strategy will work best.

I look forward to assisting you and your family in the purchase of your next home or marketing and listing your current home for sale. Please feel free to call me anytime with your many questions and concerns regarding the Atlanta metro real estate market in general or specifics regarding the relocation / buying / selling process. I look forward to assisting you further when the time is right for you. I can be reached anytime at 770-399-8108 OR e-mail me at sara.hibbard@metrobrokers.com.

If Its Wednesday, It Must Be Market Conditions Wednesday

Every Wednesday, we provide a market snap shot of current market conditions affecting specific cities in the Atlanta metro area. Wednesday's are known as "MARKET CONDITION WEDNESDAY", as I publish details about what is ACTIVE, PENDING, SOLD in one of Atlanta's major cities.

Today the focus is on CANTON. Canton is located about 30 miles north of the city of Atlanta. In 2005, Canton was the fastest growing city in Georgia and the 5th fastest growing city in the United States.

According to the latest FMLS data and as I write this, there are currently 73,698 homes on the market in the entire Atlanta metro area. Likewise, as I write this, there is a total of 1,133 single family homes on the market in CANTON and a total of 52 condo/town-home properties available and actively listed in CANTON, GA.

Actively Listed Single Family Homes
This week, Canton single family homes range in price from $39,900 for a 1959 vintage bungalow, ranch style "fixer-upper" home with 2 bedrooms/1 full bathroom located in close proximity to Exit 16 to a 22 acre estate home featuring 5 bedrooms/6 full and 2 half bathrooms for a cool $2.985 million. This spectacular pillared home sits on lakefront property and features a gourmet kitchen, 4+ car garage, indoor and outdoor swimming pools, outdoor kitchen, media / theatre center, basketball court, hot tub, gazebo, game room, wine cellar and much more.

Actively Listed Condo/Town Homes
Active CANTON condo/town home properties range in price from $83,000 for a spacious 2 bedroom / 2 full bathroom town home, built in 2001 and located in Cottonwood Creek to a 4 bedroom/4 full bathroom town home adjacent to the popular BridgeMill community in the new Overlook at Sixes Road neighborhood. This home is priced at $340,000.

Pending Sale
Currently there are 174 single family homes pending sale in Canton with prices ranging from $25,500 for a foreclosure property to $1.1 million for a 7 bedroom/7 full and 1 half bathroom estate featuring 10+ acres on an equestrian estate with barn and stables amid rolling pasture and a woodland backdrop.

SOLD Properties (4/1/2010 to 6/24/2010)
It might interest you to know that from April 1st through June 24th there were a total of 278 single family homes sold in CANTON ranging in price from $77,800 to $740,000 closed on 6/15/2010 and 6/7/2010 respectively. Likewise, there were a total of 7 townhomes sold ranging in price from $86,000 to $342,500.

So, as you can clearly see homes are selling in Canton, GA! Please call me with your many questions regarding the Canton and Atlanta metro area real estate market in general or specifics regarding the buying / selling process. Please call me if you see a home that peaks your interest or if you are considering the possibility of selling your current home. I look forward to helping you and your family, realize your real estate dreams.

In the meantime please visit me at www.GeorgiaRealEstateOnMyMind.com, e-mail me at sara.hibbard@metrobrokers.com or CALL ME ANYTIME at 770-399-8108! Happy House-Hunting!

Front Door Face Lift

What about it? Does your front door need a face lift?

“Don’t judge a book by its cover” does not apply when it comes to selling a house. In real estate, first impressions can make all the difference, and nothing makes a first impression like the entrance to your home. Luckily transforming a lackluster entrance can sometimes be as simple as applying a fresh coat of paint, so if your home’s front door currently says “go away,” have no fear. The guidelines below will help you have your entrance say, “come on in and stay a while,” in no time.

Choose a Theme
Your front door serves as an introduction to your home, so it should reflect what visitors can expect to find inside. It’s also important to take into consideration your neighborhood. With these things in mind, you might choose a modern theme with clean lines, silver or chrome accessories, and matte colors. Or you could go for something more traditional, with deeper hues and brass or antique-white fixtures, complete with features like shutters and flowerboxes. Make sure you follow the guidelines of your Home Owners Association (HOA) when making any changes.

Add a Splash of Color
A bright purple door can certainly make your house the block’s stand out, but think carefully before you select your paint. In some instances, as with a stone house in the mountains perhaps, a deep raisin with undertones of gray and brown could be the perfect choice. The front door offers a great opportunity to add a splash of originality and warmth to an otherwise buttoned-up exterior.

In general, however, it’s a good idea to steer clear from extremes in your choice of front door paint. Instead, choose a distinctive shade that still promises universal appeal. Steely blues, deep reds, or a sunny yellow – chosen to complement the house itself and any other trim – all make good choices. But don’t overlook classic white as an option either. For some homes – traditional brick, for example – a clean white treatment for the front door helps add welcome contrast while freshening and updating the house as a whole.

Accessorize!
From door knockers to mailboxes, this is your chance to have some fun. Remember your theme and select accessories that fit it. For a modern look, choose sleek metal and modern glass. Want something more traditional? How about wrought iron or brass? If yours is a casual bungalow, unfinished wood planters and simple pewter accessories might be just the thing.

If necessary, replace the house number, too, so that it accentuates the house’s overall look. Do your visitors and delivery people a favor by selecting a style and size for numbers that is clear and large enough to easily be read from the street.

For finishing touches, add fresh flowers in a flowerbox or a seasonal wreath on the door. A stylish doormat that plays off the color of the door can complete the front door facelift.

Shine a Light on It
In your front entrance remake, be sure to remember lighting. Choose a lighting fixture that fits with your theme and adequately illuminates the front door and house number for easy visibility at night. An antique lantern could illuminate the beautiful brass hardware on a traditional entrance beautifully. Or, for a more modern look, try a fixture with straight lines and angles in etched glass. Some designers recommend installing identical light fixtures on either side of the door to provide a sense of balance, a technique that also serves to make your entrance appear larger.

Select energy-efficient light bulbs intended for exterior use, and remember that brighter is not always better. Too much light can create glare and make surrounding areas appear dark and unappealing. Low-wattage bulbs (around 40W) cast a warm, inviting glow while still illuminating the entrance adequately and safely. Compact fluorescent bulbs (around 15W) make an even better choice, because they can last up to 10 times longer and use only a third as much energy as incandescent bulbs to produce a comparable amount of light.

First-Time Home Buyers: Tips to Make Your New House A Home

There are few things as satisfying to me as helping 1st time home buyers realize their dream of home-ownership. I am proud to say that I have several 1st time buyers who were under a Binding Agreement by April 30th and scheduled to be at the closing table before next Wednesday, June 30th.

After getting the keys to their new homes, many first-time home buyers are excited about finally having the opportunity to personalize and furnish their new house. From coffee tables to lamps to lawnmowers, many previous renters leap into homeownership quickly realizing they need to do a lot of shopping to truly make their house a home.

“Whether you’ve been living in an apartment with roommates or at your parents’ house, many first-time home buyers do not think about all the items they need – and want – when moving into a house,” said Janice Jones, national vice president of merchandising for Centex. “With a little advance planning and budgeting, you won’t break the bank to make your new home a reflection of your personal style and showcase your pride of homeownership.”

A typical home buyer spends $7,400 on average on their home, with more than half of that spent in the first year after purchase, according to the National Association of Home Builders.

While many first-time home buyers may not have accounted for this level of spending, Jones offers advice on what types of items to purchase to not only properly maintain and live in the home, but also more importantly, items that help new homeowners feel like their house is a place to call home.

Furnishings
Many first-time home buyers no longer want their parents’ hand-me downs or their childhood bedroom set. From sofas to dining room sets to mattresses, many first-time home buyers take the opportunity to upgrade their furniture when moving into their new home. According to an NAHB study, furnishings take the biggest chunk of the budget, with home buyers spending about $5,300 on furnishings during the first year after buying a home. The biggest ticket item for all households is bedroom furnishings, including mattresses, followed by sofas.

Window coverings and linens
The median square footage of homes bought by first-time buyers is 1,500. So, you can only imagine the number of windows that need to be covered to ensure privacy and security in a home. According to Jones, many home buyers don’t account for this in their budget. Additionally, with the ability to now paint and decorate each room, new homeowners find that they want to purchase new bedroom and bathroom linens.

Garden tools
Since a first-time home buyer is likely to move into their home from an apartment, unless you plan on hiring a gardener, you’ll need to purchase a few basic gardening tools, including a lawnmower, garden hose, sprinkler and a shovel (for winter weather).

Flat screen TV
Let’s face it: many home buyers shop for their new home while taking into a consideration how a new, large, flat-screen television set will be situated in their new living space. So, it’s not a surprise that a hot item on the list is purchasing an entertainment system.

However, you’ll also need the basic appliances in your new home: a refrigerator, stove, and a washer/dryer. While many existing homes usually come with appliances, a home buyer needs to take inventory as to whether or not they will need to purchase these big ticket items before they purchase their new bedroom set.

Basic tool kit
Every home needs a well-stocked tool box. Many home improvement stores have sets you can purchase, but make sure it includes a hammer, screw drivers, pliers, wrenches, a tape measure and a staple gun.

“My biggest piece of advice for new home buyers is to be creative and tackle this room by room,” said Jones. “For example, after outfitting your home with the necessary items—like appliances and window coverings—move on to the kitchen and family room spaces. This area is the heart of your home where everyone gathers.

“Look for great values on the items you need that will be utilized most. Take your time and get the feel of how you want to use each space for both function and enjoyment. This strategy allows homeowners to stage their purchases and add new furnishings as the budget allows. Decorating your new home should be fun and a reflection of your personal style.”

Will The Tax Credit Closing Deadline Be Extended?

Many homebuyers who went under contract prior to the April 30th tax credit deadline, but still haven’t managed to close, may be starting to sweat as the June 30th closing deadline approaches. In fact, according to the National Association of Realtors (NAR), as many as 180,000 homebuyers who signed contracts in time will not be able to make the June 30 closing deadline. Approximately 75,000 of those are buyers of distressed properties.

It looks like they might get a little extra help from Uncle Sam.

After strong urging from NAR, the Senate approved adding the amendment to a proposed jobs bill on Wednesday to extend the closing deadline on the tax credit of up to $8,000 for home buyers. Under the measure, buyers would have until Sept. 30 to close on sales that went under contract by April 30.

The extra time would, of course, only apply to buyers who met the original April 30th sales contract deadline…if the bill passes.

“All [the measure] does is take the existing law and scratch out June 30 and put in Sept. 30,” says Lucien Salvant, a spokesman for NAR.

The measure was introduced by Nevada Democrat Harry Reid, Georgia Republican Johnny Isakson, and Connecticut Democrat Chris Dodd. The extension measure is part of a wide-ranging bill of tax policy extensions and federal program renewals.

The Senate will likely vote on the larger measure later this week or next week, and then it heads to the House. Stay tuned…I'll be following developments on the status of the bill.

RISK: A 4-Letter Word For Mortgages

I consider Judy Jones, Vice President of Metro Brokers Financial to be an excellent source when it comes to questions regarding financing and mortgages. Judy is a woman way ahead of her time in analyzing and evaluating mortgages and risk assessment. Additionally, she is a woman of extremely high character and integrity. She knows how to accomplish tasks and get the job done. She is a true "can-do" personality type. Likewise, she is by-the-book. Judy is a straight shooter. She will tell you in no uncertain terms that what you are proposing will not work. She will also tell you why.

It might interest you to know that Judy Jones holds the distinction of being the ONLY person or private citizen in the banking / finance / mortgage industry to ever be invited to present and speak to FANNIE MAE and FREDDIE MAC. Judy is truly an authority figure in the world of mortgage financing.

For those reasons and many more, I share the following article written by Judy Jones.

RISK: A 4-Letter Word for Mortgages

The current economic climate we find ourselves in could easily be titled, “The Good, The Bad and the Ugly”, “The Best of Times and the Worst of Times” or even, “I have good news and I have bad news”

I’m a very strong believer that if you know what to expect and have an understanding of possible challenges and plan for them and anticipate them, bad news or challenges can be overcome.

Well, here’s the GOOD News:

• Interest rates are at 50 year lows.
• Home prices are at 10 year lows in some markets.
• It’s a buyer’s market.
• FHA HUD homes can be bought with $100 down.
• There are a large number of homes to choose from.
• Etc., Etc.

Some have grown complacent to all this good news.

Some even thought there was better news coming and missed the only Federal Homebuyer Tax Credit in History!

Well, here’s the BAD News:

• The low interest rates mean that Lenders have more to lose than gain by making loans!
• These lenders have already lost large sums due to unpaid mortgage loans that have resulted in the drop in home prices.
• Risk rules the Lending world today. This makes getting a new mortgage a very difficult and long process.

So, be prepared for the reality of the new lending requirements. It’s definitely worth it when you consider what they have to gain.


1. All loans are fully documented today. Many buyers and sellers remember getting a mortgage when the documentation was very limited and qualifying was easy. And, that is what got the industry in the mess it is now.
2. The buyer/borrower needs to provide all documents required as quickly as possible to the mortgage lender to help protect their earnest money.
3. The mortgage lender is not a party to the Real Estate Sales Contract. This means that the due diligence period is not a time line the lender must meet. Often, due diligence periods are impossible to meet due to new Federal Laws which have been implemented to intentionally slow the mortgage process and protect the borrower.
4. Lenders will continue to dig until all their questions are answered. Borrowers who think they can trick the system may find their loan declined or worse, they could be investigated for attempted mortgage fraud, a felony in the State of Georgia!

Here are the top 5 Got Ya’s in obtaining a mortgage today:

1. Buyer/Borrower does not reveal the entire truth of their income, assets or debts when they first make loan application.
2. All Mortgage Lenders (FHA, VA, FNMA and Freddie Mac) pull a copy of the borrower’s filed tax returns from the IRS. Often the income shown on the tax returns does not match the pay stubs or shows business expenses.
3. The money used for down payment can not be borrowed. Often times the borrower’s bank statements will reflect large deposits that do not match their payroll deposit amounts. These large deposits must be explained and DOCUMENTED.
4. Gifts from relatives for the entire down payment are only acceptable on FHA loans.
5. Documenting the gift includes a completed signed gift letter from the relative, a copy of the check from the relative, copy of the relative’s bank statement proving they had the money to give and an updated bank statement for the borrower showing the current balance after the receipt of the gift amount.


For all the information, Judy Jones presented here, its all the more important to ensure that you are a well educated consumer. If you are a buyer or seller in today's market, you really need to have an educated real estate professional represent your best interests. You need someone who can guide you throughout the many challenges involved with buying and / or selling in today's real estate marketplace. It is a great time to buy, but without the proper guide to help navigate the waters, you may end up loosing the money you would have otherwise saved. This counts double for sellers in todays market.

Please call me with your many questions and concerns regarding the mortgage / relocation / buying / selling process. I can be reached anytime at 770-399-8108 or e-mail me at sara.hibbard@metrobrokers.com. I look forward to assisting you when the time is right for you.

Will A Short Sale Save Your Credit?

There is unfortunately a ton of miss information floating around on the Internet as well as other news sources regarding short sales and foreclosures.

This past week 4 different people actually told me that if they file for a short sale their problems will vanish.

As you would expect, as a real estate professional, I spend a lot of time and money attending various industry seminars, taking continuing education courses and learning about all things real estate. The reason for this is that the industry is changing -- literally changing with the wind. My goal is to stay as current as possible. To do that I also am a subscriber to many industry related newsletters and magazines. This allows me to stay current and up to date on various trends and issues facing the real estate industry and my clients. One newsletter I receive on a daily basis is RIS MEDIA. After the week I have just had, today's top story is timely and so I share it with you here.

Please feel free to call me anytime with your many questions regarding short sales, foreclosures or whatever might be on your mind relating to the Atlanta metro real estate market in general or specifics regarding the buying / selling / relocation process. I look forward to assisting you and your family when the time is right for you folks. Call me anytime at 770-399-8108. Have a wonderful weekend!

RISMEDIA, June 11, 2010— (MCT)—Stuck in a house you can’t afford or can’t sell for more than you owe on it? Beware the Web, where you’ll see plenty of claims that short sales will save your credit, simple as that. But there’s nothing simple about deciding whether to sell your house in a foreclosure or in a short sale, which means you sell the property for less than you owe the bank. And in most cases, going through either process will wreck your credit score.

“Both short sales and foreclosures are considered negative by the score, because our data shows us it’s very predictive of future credit risk,” Tom Quinn, Minneapolis-based Fair Isaac Corp.’s vice president of FICO scores, said. “The claim that doing a short sale is not going to hurt your score is false. It’s inaccurate.”

Credit scores, which are designed to assess how likely it is that consumers will uphold their side of the bargain, look at the severity (are we talking bankruptcy or a late car payment?), frequency (have you skipped a payment once, or have you missed a bunch?), and recency (did you miss a payment last month or last year?) of items on your credit report.

In both short sales and foreclosures, “you made a lender eat a big number,” said Alex Stenback, a mortgage banker with Residential Mortgage Group in Wayzata, Minn.

That’s not to say that there aren’t some instances where short sales are better. If a borrower is current at the point of a short sale, for instance, then the consumer’s credit score won’t sink as far as it would have if he hadn’t made a mortgage payment for six months. Still, Fair Isaac says that the benefit from not having prior delinquencies on file pales when compared with the hit a score takes from a short sale.

Dan Williams, program director for LSS Financial Counseling Service, says this widespread notion that short sales are better for credit is a big problem because it deters some people from going into foreclosure when that would be the best option for them.

In Minnesota, homeowners can stay in their houses for six months after the foreclosure sheriff’s sale. Factor in the fact that many banks don’t start foreclosure proceedings right after the third missed payment, and families can potentially stay in a house for more than a year rent-free, hopefully saving that money to help them get back on their feet. This could amount to thousands of dollars.

Housing counselors say that most clients have credit scores in the basement already. “If you’ve got a poor credit score and are doing a short sale to preserve your credit, it’s ridiculous,” Williams said. And it’s happening every day.”

If you’re having mortgage trouble, seek help right away from a housing counselor or an attorney. Realtors are the go-to professionals to learn about the local housing market and what it takes to sell your home. But they aren’t credit experts, and I’d get a second opinion if anyone is telling you that a short sale will save your score. And don’t pay someone a lot of money if they promise to quickly rehab your credit score after foreclosure. Credit scores are forgiving—over time.

Both FICO and its credit scoring competitor VantageScore have released estimates for what happens to consumers’ credit scores when they make mortgage missteps. In the VantageScore study, a homeowner with an otherwise clean record who then has a short sale sees their credit score drop between 120 and 130 points (on a scale of 501-990) compared with between 130 and 140 points if the same homeowner ends up in foreclosure.

For a homeowner whose credit report is rife with late payments on everything from credit cards to car loans, a short sale would ding them between 15 to 25 points compared with 10 and 20 points for a foreclosure. Customers with rotten scores will see smaller point drops than someone whose score is good, because the score already has taken into account the lower-scoring customer’s risky behavior and adjusted the score downward.

FICO’s example found short sales and foreclosures will set you back between 140 and 160 points if your credit score is a respectable 780 (on a scale of 300 to 850), or between 85 and 105 points if your credit is 680.

Even if you do your homework, you ultimately can’t control how your housing woes are reported to the credit bureaus. For example, mortgage servicers may report your situation to the credit bureaus using different codes that could be interpreted more or less favorably by FICO, Quinn said.

What if your circumstances change and you’re able to save your home from a foreclosure? “Once you’ve got a foreclosure starting to track on your credit file, you’re taking a major hit,” even if you ultimately save your house, said Sarah Davies, a VantageScore senior vice president.

Credit scores play such a central role in consumer’s lives. Yet it’s so hard to understand them that people can end up making disastrous choices based on myths that are taken as fact. It’s certainly not a catchall solution, but Congress should at least grant consumers free access to their credit scores, an idea which is currently being floated at the capitol.

Pricing Your Home For Sale

Is your home worth your asking price? The best way to answer that question is to separate what’s relevant to home buyers from what’s not relevant.

Starting with the bare basics, home buyers choose homes based on:

Price – their lenders tell them what they can afford
Location – they know where they want to live and why
Condition – they want homes that are well-maintained and move-in ready

They look at the available inventory – your home and its competition. The greater the inventory, the more room they have to negotiate terms.

They narrow their choices to a short list, based on what they perceive to be the best value.

They buy according to what’s most important to them – price, neighborhood, and/or condition. For example, a buyer who wants a certain neighborhood may choose a home in less than perfect condition, but only if the price is right.

What you should consider before you price your home
Your market

When home sales volumes increase, prices go up, and inventories of homes for sale fall below about six months on hand, (meaning it would take six months or less to sell all the homes for sale on the market to zero on hand) the market is said to be a “seller’s market,” because the market’s conditions favor sellers.

When sales volumes decrease, prices decline, and inventories of homes rise above about six months on hand, conditions favor the buyer, making it a “buyer’s market.”

To sell your home in the current market, you have to consider the market’s conditions.
You may adjust your price and terms accordingly.

Your competition

Your competition is not only other similar homes in your area, but what buyers can get if they buy brand-new. Your buyer is comparing size, number of bedrooms and baths, amenities, updates, views, landscaping, and décor. You can’t put a price on many features, but some qualities, such as fine workmanship, room flow, and convenient storage are simply worth more money to buyers.

Your urgency

If you’re relocating or have another reason to be in a hurry, you don’t have time to test the market. You have to price your home to get immediate and serious offers to buy.

What’s not relevant to home buyers
Your emotions

If you’re sentimental about your home, remember your buyer hasn’t formed the same attachments. Your buyer may appreciate your home, but will still compare it to other available homes in terms of price, location, and condition before weighing emotion.

What you paid for the house

Many area home prices have receded as much as five to ten years. Sellers who paid high prices for their homes, purchased too recently to build equity, or took out second liens or equity loans may find that what they paid is not what the home is worth in today’s market. Buyers are only concerned with what they can afford.

What you paid for improvements beyond ordinary maintenance

Your swimming pool may be beautiful and add some value to your home, but some buyers may not want the upkeep or the insurance liability, so they’ll tend to offer less for the home than a buyer who really wants a pool.

What buyers expect is for homes to be properly maintained. Even if a home is in the most desirable of neighborhoods, it will never sell for as much as similar homes if it is in poor condition or lacking updates comparable to newer homes in the area.

Your investment or retirement
No one wants to lose money selling a home. That’s why the government provides countless subsidies to encourage home ownership, including tax relief. In normal markets, homes outpace inflation by about one to two percent annually, but when markets heat up, home owners have the opportunity to net more. The downside is that overheated markets eventually return to the “mean,” or typical appreciation. In doing so, some markets overcorrect, leaving sellers short.

With many employers no longer providing retirement funds, and social security at risk for the next generation, many home owners want their property to fill the financial shortfall. While that’s possible, it’s not a consideration in pricing your home. Your buyer will not want to pay for you to move up, for your retirement, or for equity you may have removed from the property in order to pay for college educations, furniture, or credit card loans.

The bottom line is that no buyer will pay more than a home is worth in the current market. They may have paid more in the past, and they may pay more in the future, but what they pay today is a matter of supply and demand.

If you want to sell your home quickly and for the most money possible, price to entice buyers, and let them see for themselves that your home is in best condition for the neighborhood.

If It's Wednesday -- It Must Be Market Conditions Wednesday!

If It's Wednesday -- It Must Be Market Conditions Wednesday!

This week the spotlight is on BALL GROUND.

To give you a frame of reference, there are a total of 72,796 homes on the market in the entire Atlanta metro area as I write this at 11:53AM on 6/9/2010. In the last market conditions report published on May 26th which focused on Austell, there was a total of 74,051 homes on the market -- a difference or decrease of 1,255 homes.

Today, as I write this, BALL GROUND has 166 homes Actively listed and on the market. They range in price from mobile home on a 2 acre lot priced at $42,900 to an unbelievable 78 acre gated estate compound home complete with a large guest house, stables with living quarters, swimming pool, tennis court, storage building, 2ponds and 4+ car garage priced at $3.9 million.

Currently there are 29 homes PENDING SALE in Ball Ground. Prices range from $49,900 for a short sale property with 4 bedrooms/2 full bathrooms to $980,000 for a 4 bedroom/4 full and 2 half bathroom home on the Etowah River in a gated community.

Homes are selling in Ball Ground! Since March 1st to date, there have been 50 properties SOLD and closed in Ball Ground. The least expensive property to sell during the period, sold for $15,000 after 61 days on the market. This property is located 1738 Sperin Road. This home offered 3 bedrooms/2 bathrooms and was built in 1973. It sits on 2.4 acres. The house is in great need of TLC and the land was worth more than the property. The property closed on 5/14/2010. Likewise the highest priced property to sell in Ball Ground during the period was originally listed at $900,000. It was reduced to $864,900 and after a total of 436 days on the market sold and closed on 5/11/2010 for $850,000 or 94% SP/OLP. This property is located in Hawks Ridge and is a Country French estate home with 5 bedrooms/4 full and 3 half bathrooms with brick on 4 sides of the house, complete daylight basement, 3 car garage and details too numerous to mention.

Join us next time when we will highlight the city of CANTON. Homes are selling all over Atlanta. During the month of May, more than 8,000 were sold and closed in the entire Atlanta metro area. Somewhere, there is a home waiting with your name on it! Please call me if you know someone who is considering the possibility of buying or selling real estate. I look forward to assisting you too when the time is right for you. I'm Glad Georgia Real Estate Is On Your Mind! Call me anytime at 770-399-8108.

Recently, I was invited to give a listing presentation at the home of prospective clients who are interested in selling their beautiful and extremely well cared for home in East Cobb.

This family has called this house "home" since moving there in 1979. The whole place is truly lovely. The home radiates pride of ownership and love -- love of family as well as the obvious love this family has put into their home over 30 years. Truly a labor of love! This home exudes memories through pictures and family memorabilia as well as elegant landscaping where children once chased fire-flys on hot summer nights and played football games amidst a lush backyard setting. A home so well organized there is a place for everyone and everything. It is obvious that this family appreciates nice things and over the years they have taken vigilant and excellent care of their home and surroundings. Even after 30 years, this home has the feel and look of a "model home". Picture a home featured in Better Homes and Gardens Magazine!

Yes, these home owners have maintained this home perfectly too. They have been meticulous about cleaning gutters, mowing, weeding, trimming, edging the yard and landscape. They replaced old windows with new energy efficient windows. Rooms that once had elegant wall papers, are now custom and neutral tone paints. Additionally, there have been occasional replacements and upgrades as necessary for a new roof, hot water heater, exterior and interior paint, new bathroom vanities, new front door hardware, appliances, etc.

After raising 4 active children and the recent marriage of a daughter these clients believe it is time to downsize. They want to sell this beautiful home and they want to be sure their home is in "show ready" condition.

While visiting this home, these clients wanted my input on whether they should install new countertops before putting their home on the market. (I might add here, that this home will show extremely well (and sell quickly even in a down market) regardless of whether or not they decide to have new countertops installed). Regardless, this is a project they want to do as a gift to lucky new buyers.

This subject is what influenced my Blog topic today. As we discussed the pros and cons of countertops, I thought you might be interested in this subject too.

With 80 percent of homes in the U.S. built before 1980, chances are you are either buying or selling a home that needs a kitchen update.

Your real estate professional has likely told you that countertops are among the most important surfaces in the home. What’s the latest in countertops?

Granite
Granite conveys quality, durability, and elegance. “It’s got granite” has become shorthand for luxury.

Consumers love granite because it’s easy to maintain and can withstand hot pans up to 900 degrees Fahrenheit. And, it’s beautiful.

To meet demand, many builders use “commodity” granite with familiar names like Uba Tuba, Baltic Brown and Black Galaxy. These granite patterns feature small patterns that are easy to fabricate into small tiles or slabs. You can find commodity granite at home improvement stores.

But if you want the latest look, it’s all about “slab” granite. Like a piece of modern art, slab granite is chosen for the beauty of a contiguous swirl or lighting-like pattern that is one of a kind and can be fabricated without a seam across a large countertop space.

It’s an expensive way to go, but the effect can be dazzling, like capturing a fine painting in the framework of your counter space.

Quartz
Unlike granite that has to be measured and cut to specifications, engineered stone is poured into a mold to fit the measurement.

Engineered stone is about 93 percent quartz, which is then rounded out with epoxy, polymers, pebbles, semi-precious stones and other materials. Unlike granite, which can stain if it’s not sealed and resealed periodically, engineered stone is non-porous.

Since it’s man-made, it’s easy to match and arrives looking just like the sample in your hand. You’ve heard the brand names – Silestone from Italy, Hanstone from Korea, CaesarStone from Israel, among others. Each of these brands have stunning palettes to choose from, from granite-like patterns to solid colors of all hues.

Another advantage to quartz engineering is cost. When it was first introduced, it was more expensive than granite, but that’s no longer the case.

Composites
Building on resin-based technologies, new companies are creating innovative eco-friendly custom countertops. Made with recycled paper, concrete, glass and other products, these countertops can look as warm and as smooth as burnished wood, or as vivid and colorful as a kaleidoscope. Example composites can be seen at vetrazzo.com.

The unpredictable availability of certain glass means that each countertop is a work of art, and that some patterns are only available in a limited edition.

If you like the look and features of granite, quartz and the new composites, use all three! Try quartz for your cooking area, a complementary granite for your island, and a jazzy composite for the wet bar.

The good news is you don’t have to limit yourself to one selection.

Please call or e-mail me if you are considering the possible sale of your current home and / or the purchase of a home. I look forward to consulting with you too when the time is right for you. I can be reached at sara.hibbard@metrobrokers.com OR call me at 770-399-8108! I'm Glad Georgia Real Estate is on Your Mind!

4 Tips to Determine How Much Mortgage You Can Afford

4 Tips to Determine How Much Mortgage You Can Afford
By: G. M. Filisko
Published 2010-03-11 16:55:18

Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.

Instead of just taking out the biggest mortgage a lender qualifies you to borrow, consider how much you want to pay each month for housing based on your financial and personal goals.

Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage?

Still not sure how much you can afford? You can use the same formulas that most lenders use, or try another of these traditional methods for estimating the amount of mortgage you can afford.



1. The general rule of mortgage affordability
As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.

To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.

2. Factor in your downpayment
How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which costs hundreds each month. That leaves more money for your mortgage payment.

The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

3. Consider your overall debt
Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn’t total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 41% of your gross annual income.

Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.

4. Use your rent as a mortgage guide
The tax benefits of homeownership generally allow you to afford a mortgage payment—including taxes and insurance—of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here’s an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.

However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calcuation instead.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

G.M. Filisko is an attorney and award-winning writer who’s owned her own home for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Greek Tragedy Helps U.S. Mortgage Rates

Judy Jones of Metro Brokers Financial writes that the current financial troubles in Europe are proving to be an unexpected blessing for U.S. homebuyers. With the value of the Euro steadily declining, large international investors are now putting their money into U.S. Treasury Bonds. The value of these bonds has a direct impact on mortgage interest rates. When the value of U.S. Treasury Bonds go up, mortgage interest rates go down.

The increased demand and buying of U.S. Treasury Bonds has forced their value up which in turn has allowed mortgage interest rates to drop to a new 50 year low.

So what does that mean for homebuyers and homeowners? That this is an EXCELLENT time to buy or refinance!

These low rates coupled with incredible home prices allows a homebuyer to literally own a home that was far beyond their reach 3 years ago, for less per month than they pay in rent. In real dollars and cents, a $150K, 30-year loan at 5% is a principal and interest payment of $805 per month.


The low rates also make it an excellent time for current homeowners to refinance. Approximately 50% of homeowners with a 30-year fixed rate loan have a rate that is higher than 6.25%. Even with the cost to refinance, it makes sense to refinance.

The hurdle that borrowers are facing is getting approved for the mortgage. Mortgage approval guidelines are more stringent than they have been in the past 12 years. Tons of paperwork will now be required and only those borrowers with excellent credit scores will be able to take advantage of the lowest available rates.

“It’s all Greek to Me”

As Americans ponder whether to take advantage of historic interest rates, few realize the great irony that the economic woes of the tiny island of Greece could be one of the key reasons for American mortgage interest rates falling to a 50 year low!

If this connection is “all Greek to you”, here is a simple explanation: Greece is a member of the Euro Zone, which is an economic and monetary union consisting of 16 European member states. These states have agreed to adopt the Euro as their sole legal currency. The Euro currency was supposed to bring economic strength and unity to the member states. But, as we all know, every group is only as strong as its weakest link. Greece seems to be that weak link.

And in typical Greek tragedy fashion, Greece is very small in comparison to the other 16 Euro Zone states. Greece has a population of only 11 million while the rest of the 16 European member states of the Euro Zone have a total population of over 329million. Yet Greece is that major weak link in the Euro Zone.

Greece’s national debt is now bigger than the country’s entire economy. Simply put, Greece spends 12.7% more than it currently makes in revenue. Fear of Greece’s negative impact on the value of the Euro has prompted major investors to seek safer investments such as U.S. Treasury Bonds.

Thus, Greece could be the domino that has pushed U.S. mortgage rates lower than anyone had predicted.

Let me know if you’re interested in finding out more about getting mortgage rates at a 50-year low. I will be happy to introduce you to a qualified, fully informed and capable Loan Officer who can assist you throughout the process and find the loan best suited for your needs and pocketbook. Call me anytime at 770-399-8108. I'm Glad Georgia Real Estate in on Your Mind!