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Get Yourself Pampered This Week, and, The Pamperer Will Support a Great Cause

Get yourself pampered this week with a treatment at Re'Vive Salon and Spa. In order to help the Athens Area Association of Realtors reach it's over $70,000 goal, Re'Vive has offerred to share 30% of the proceeds it receives from patrons this week.

There are only two things you need to do in order to make this happen:

1. Make an appointment at Re'Vive Salon and Spa for one of their spa treatments between today, Sep 14 and Friday, Sep. 19.
   
2. Mention the AAAR 3 Day Breast Cancer Walk

and voila! Re'Vive will pledge 30% to this goal.

Details can be found in the flyer below:

Marty Winkler - Jazz, Blues & Folk Singer - Free Concert at the Athens-Clarke County Library, 3 P.M. Sunday Sep. 6

Marty Winkler, along with her partner Michael C. Steele, will be giving a free concert at the Athens-Clarke County Library on Sunday, Sep. 6. Marty and Michael will be presenting their original work as well as their versions of other artists music.

You can get a flavor of what to expect at the concert by visiting Marty's MySpace Music page. She will also be appearing in downtown Athens at the Melting Point, Saturday evening, Sep. 5. along with Jazz Enigma and Holly Belle.

The concert will be in the auditorium of the library and is sponsored by the Friends of the Athens-Clarke County Library.

Dine Out in Athens or Watkinsville GA and Help Find a Cure for Breast Cancer!

The Athens Area Association of Realtors (AAAR) is sponsoring a team for that 3 Day Breast Cancer Walk. AAAR has set a goal of raising $69,000.00 this year.

To help reach that goal, some Athens area restaurants have agreed to donate part of their proceeds from specific days and meals. If you are considering dining out on those days, please consider these restaurants:

The Daily Neighborhood Deli - Friday, July 31st, dinner only - reservations suggested

The Hilltop Grille - August 3 - 9, all meals

The Daily Neighborhood Deli - August 14 - dinner only

The Daily Neighborhood Deli is located at 2791 Monroe Highway, Watkinsville.

The menu for Fri, Jul 31 will be::

Option 1: Traditional spinach salad: bacon, red onion, hard boiled egg, creamy housemade dressing.

Seared scallops, lemon risotto, asparagus, pine nuts, balsamic gastrique. $16.95

Option 2: Antipasti, pesto ciabatta

Orecchieete, sausage, broccoli rabe, parmesan, arrabbiata sauce $15.95

Dinner is served from 5:30 - 8:30 PM

They would appreciate it if you would call and let them know that you are coming, but not absolutely necessary. Their phone number is 678-661-0303.

So, go out and have a great meal while helping a great cause!

Can You Use $8000 More for Your Down Payment?

I know that I can. Unfortunately, I do not qualify. But, if you are a first time home buyer, someone who hasn't owned your own home for at least 3 years, you just might be able to take advantage of this.

As of Friday, May 29, 2009, H.U.D. has approved the monetization of the $8000 tax credit. What that simply means is that the tax credit, however much your home purchase qualifies for, can be used for part of your down payment or closing costs. No, the government will not give you a check that you can take to closing, but, lenders are now free to consider this and apply it to your down payment or closing costs.

How this will be done has not yet been determined, but, it will most likely be in the form of a short term "bridge" loan that will be payable at the time you receive your tax credit. I have not seen any programs announced, but expect that within a few days the various banks and other lenders will have packages set up.

What does that mean to you? It will mean that you can possibly afford a more expensive home, or, that you can have lower house payments if you apply your credit to the down payment or closing costs.

Is it a wise thing to do, or the best thing to do for you? That, I cannot tell you. I don't know your situation, and, I am also not a financial adviser. You will need to work that out for yourself, or with the help of a qualified financial adviser.

If you would like more information on the First Time Home Buyer's Tax Credit, or, if you are interested in buying or selling your home or land in Athens-Clarke County, Jackson, Barrow, Madison, Oglethorpe and Oconee Counties, give me a call at 706-207-5290. Or, you can click here to email me with any inquiries. To search for homes and land in and around Athens, GA please visit my website, The Athens Real Estate Page.

So You Want to Sell Your Home - Lucky Part 13 - What's Cooking in the Kitchen?

A few posts ago I provided a list of how buyers prioritize the areas of the home they are viewing. After the curb appeal and the entryway, the most important area is the kitchen.

Today's kitchen is not longer the sole domain of the woman. More and more men are spending time in the kitchen doing the cooking. In my home I prepare most of the meals, although I do admit, my wife does most of the cleaning. Men don't just grill anymore, we bake, we steam, we souffle, we cook!

What does that mean? It means the kitchen now has to appeal functionally and attractive to buyers of both genders. The counters have to appear spacious, the cabinets accessible with a lot of storage, the lighting bright, and overall, movement between prep area to cooking area to serving area clear and uncluttered.

So what are the steps to making your kitchen appealing?

• Clean your kitchen until it shines - every square inch of it, paying special attention to the stove, oven, sink, counters, floor and refrigerator.
• Take care of any maintenance issues, fix your leaky faucets, replace faulty burners, replace burned out light bulbs. Make sure your drawers and cabinets open easily and without squeaks. Replace broken or worn drawer and cabinet pulls. Make sure any exhaust fans, as well as built in appliances, such as disposal, are all in working order.
• Empty the kitchen counter surfaces of all but the most often used and needed items. The more open counter space the more appealing the kitchen.
• Empty your cabinets and only return items that you use regularly. If you have place settings for 12 but only use 4, put at least 6 in storage. Put seasonal items, like Thanksgiving platters into storage until needed. Get rid of items that you don't use (like that second toaster) or put them into storage.
• Clean out your refrigerator and pantry. Get rid of old out dated foods. In the refrigerator, get rid of any fuzzy "science projects". Make sure the shelves and surfaces are clean. Keep only enough food for a couple of days in both the refrigerator and the pantry. Keep an open box of baking soda in an inconspicuous place in your refrigerator. And don't forget to take all those post its off of the refrigerator door.
  
• Wash your dishes after every meal. Ok, this one might be tough, but dirty dishes in the sink detracts from the perception of the kitchen. Even if you have a dishwasher, rinse the dishes well before placing them inside of it. You don't want any food smells when someone opens the dishwasher door. Wash your dishes daily in the dishwasher.
• Clean out under the sink. Get rid of cleaners, chemicals and everything else that you store under the sink but don't use regularly. You don't want to remind anyone that your gleaming kitchen takes work to keep it that way. Make sure that you clean under there also.
• Paint your walls. Even if it means removing wallpaper. Wallpaper is an even more personal selection than paint and if a buyer sees that he or she will need to remove wallpaper it may tilt the balance against your kitchen. Use a neutral color.
• Display flowers and fresh fruit, but don't over do it. And the key word is fresh, for both the flowers and the fruit.
• Oh-Oh that smell. Be careful what you cook while your home is for sale. Many foods leave odors, even if you have gotten used to them. If you like bacon, you may be better off getting it somewhere like Denny's. Bacon and other foods can leave lingering aromas that can and do turn some people off.
• You can feed Fido but don't leave any evidence of it. Put away the water and food dishes for your pets. They make both a trip and spill hazard.
  

Sounds like a lot of work, doesn't it? But it really isn't and, you will like like the results when your home sells faster because you have taken care to present the most important (to the buyer) room in house in the best manner possible. Best of luck.

For information on buying or selling your home in Athens GA and the surrounding areas, call me at 706-207-5290 or click here to email me. You can visit my website, The Athens Real Estate Page to search for homes and land in and around Athens.

Thinking of Buying a Foreclosure?

Well here are some things to think about!

You may have heard on TV or radio, from your friends, from newspapers, magazines or the internet that there are some really good bargains out there in the foreclosure market. In fact, you see some ads about people purchasing homes for 10¢ on the dollar. They are even willing to sell you the information on where you can buy foreclosed homes and properties. But there are some things that they don’t tell you. Here are some of them:

You don’t have to pay for a list of foreclosures in your area – you can get this information for free in several ways. You can go to each banks foreclosure sight on the internet. Or, you can go to a Realtor® and he or she will do the work for you.

You get what you pay for – you may pay only 10¢ on the dollar but that is what the property is worth in today’s market. You get for that price because nobody would pay more.

Most foreclosed upon properties are distressed – In one form or another almost every foreclosed property is distressed, or has problems. They usually need work and many do not qualify for an FHA loan without significant repairs made. Sometimes it might only be repainting, carpet replacement and appliances replaced. Very often there is extensive work required to make the home live-able.

Cash is king – In the foreclosure market the cash buyer typically has the advantage. The bank or other owner of the foreclosed property will usually accept a cash offer over one that needs financing or appraisal approval.

Don’t just get pre-approved, get pre-committed – After cash, the purchase that has pre-committed funds is next in the pecking order. This means that if a loan is required, the lender has already committed to lending the purchaser the money. The only contingency is that the property meets the appraisal requirements. This is beyond pre-approval, where a credit check has been performed and the lender has determined that the client may be eligible to get a loan. And, it is certainly way beyond a pre-qualification which is not much more than recognition that the buyer is still breathing.

Don’t expect a quick response to your offer – most banks will wait for some time before responding to an offer. They are hoping for multiple offers to come in and will wait for that to happen. When they get multiple offers they will then issue a call for “highest and best” offer and will give a deadline for those to be received. Even if there is only one offer they will wait and then either negotiate or ask for highest and best.

You may have to offer, or pay, more than the asking price – Yep; this is a big surprise for many people. You may have to offer more than the asking price, especially when there are multiple offers on the same foreclosed property.

You will get special conditions from the bank before the offer is accepted – Most lenders of foreclosed properties will have special conditions or stipulations for the sale. This may require using a specific closing attorney that might be hundreds of miles away. It will almost always include a shortened due diligence period, the period you will need to perform all inspections, of the property, etc. They may even want you to be approved by a specific lender, although you won’t necessarily have to use that lender. The lender may, or may not, negotiate these conditions. So, if you have a particular attorney you would like to use to close with, you can attempt to negotiate that but don’t expect to have it happen.

Get your financing commitment before you start looking – Get that commitment for funding before you even start looking at a foreclosure. If you find one that you like, very often others will also like it. The best ones don’t stay on the market very long. Get that pre-commitment so that you don’t lose out on an opportunity by not being ready with all your financing requirements taken care of.

You can get renovation funds included in your loan – There is more likely than not going to be problems with a foreclosed home. It is possible to get a loan that will include funding to make any repairs/renovations required to bring the property up to standards to meet the loan eligibility. You can even add that deck, granite countertops, whatever renovations that you would like to make, if you qualify. Check with your lender on the programs available.

Work with someone familiar with the process – This is a strong recommendation. Work with a Realtor® that will guide you through the entire process and know the best ways to get you the property you want, whether for your own home or for an investment.

Armed with the above list, go ahead and look for that foreclosed property. You might not find your dream home, but you might very well find the home that you can make into the home of your dreams. And above all, be patient. You might not, probably won’t, win the first one, but keep it up, it will happen.

Note: This is not to be construed as financial advice or legal advice. Please check with an attorney for any legal recommendations and with a qualified lender for advice on getting pre-committed.

For information on buying or selling real estate in Athens and the surrounding counties, call me at 706-207-5290 or click here to email me. If you would like to search for properties available in this same area, please click to follow the link to The Athens Real Estate Page.

Thinking of Buying a Home - How Much Home Can You Afford

If you are thinking of buying a home you really need to understand how much home that you can afford. Not how high a payment that you are comfortable with, but how high a payment that your lender and loan type/underwriter thinks that you can afford. And, you should find this out before you look for a new home. You don't want to waste your time, or your buying agents time, looking at homes that are out of your price range.

So how can you get an idea of how much home that you can afford? It's a two step process. The first step is determining what your ratios are. But, just what are these ratios, you might ask.

The first is called the Front End Ratio. That is merely how much your cost of housing will be compared to your gross income. Note: it is not how much your loan payment will be but the total cost of housing which includes Principle, Interest (both of which are our loan paymet), Taxes and Insurance. These are commonly referred to as PITI. Gross Income is your total monthly income from all sources: wages, alimony, interest, dividends, social security, etc. Your monthly income is figured by looking at your previous 12 months income and dividing by 12.

Front-End Ratio = (Monthly Housing Expense / Gross Monthly Income) x 100

The second is call the Back End Ratio, or your Debt-to-Income Ratio. This is the total of all your monthly debt payments, including PITI, compared to your gross monthly income. This includes all debts: credit cards, student loans, alimony, child support, gym memberships, etc.

Back-End Ratio = (Total Monthly Debt Expense / Gross Monthly Income) x 100

Lenders use these ratios to calculate risk, or the likelihood of the borrower being able to make their payment on time. The higher the ratio, the greater the risk.

As mentioned earlier, various loan types can and do have different ratio requirements. Below is a list of current ratios. Note: These figures have changed recently and are subject to change at any time under current credit conditions.

FHA & VA - 31 Front End /43 Back End Ratio
USDA Rural Development - 29 Front End / 41 Back End
Conventional - 33 Front End / 45 Back End

Using these figures, if you have a monthly income of $3000.00, under FHA and VA, your total monthly housing expense can be as high as $930.00 and your total debt to income can be as high as $1290.00 a month. For Rural Development, this would be a bit lower, for Conventional, a bit higher. Depending upon where you are looking, your PITI will vary based upon tax rate and insurance. In the Athens Area, for a median home sale of $170,000 taxes could run $160. month and insurance $40 month for a total of $200.00. This means you can afford a home with a loan amount of $730/month. (Note: Taxes and insurance will vary. Those figures are only approximate and will be dependant upon assessment and any exemptions you may be eligible for.)

Lenders usually place more emphasis on back end rations than front end.

The second step is to determine how much home your loan payment will cover. Use the chart below to determine your monthly principal and interest payments at various interest rates for either a 15- or 30-year term.

Interest Rate Factors Per $1000

Interest Rate	15 Yr. Term	30 Yr. Term	Interest Rate	15 Yr. Term	30 Yr. Term
4%	$7.40	$4.77	8%	$9.56	$7.34
4.25%	$7.52	$4.92	8.25%	$9.70	$7.51
4.5%	$7.65	$5.07	8.5%	$9.85	$7.69
4.75%	$7.78	$5.22	8.75%	$9.99	$7.87
5%	$7.91	$5.37	9%	$10.14	$8.05
5.25%	$8.04	$5.52	9.25%	$10.29	$8.23
5.5%	$8.17	$5.68	9.5%	$10.44	$8.41
5.75%	$8.30	$5.84	9.75%	$10.59	$8.59
6%	$8.44	$6.00	10%	$10.75	$8.77
6.25%	$8.57	$6.16	10.25%	$10.90	$8.96
6.5%	$8.71	$6.32	10.55%	$11.05	$9.15
6.75%	$8.85	$6.48	10.75%	$11.21	$9.33
7%	$8.99	$6.65	11.25%	$111.36	$9.52
7.25%	$9.13	$6.82	11.5%	$11.52	$9.71
7.5%	$9.27	$6.99	11.75%	$11.68	$9.90
7.75%	$9.41	$7.16	12%	$11.84	$10.09

1. Find the appropriate interest rate from the chart above.
2. Look across the column to the appropriate term to determine your interest rate factor.
3. Multiply the interest rate factor by your loan amount in $1,000s.
4. Compare that to the payment you reached by applying the ratios.

For instance, if you assume a 30 year loan at 5.5% for a $170,000 home, multiply $5.68 x 170 (the number of thousands in 170,000). Your payment would be $965.60, much higher than you can qualify for. To find out the approximate loan amount, divide $730 by $5.68. Your result will be a $128,500 loan at 5.5%. If you want to buy a home higher than that amount you will need to either make a larger down payment or qualify for a lower interest rate.

Note: This is not to be construed as financial advice. It is merely to provide you a means of approximating the price of a home you may be able to afford. Please check with an experienced lender to determine the exact amount of loan and interest rate you qualify for. They will then be able to give you a more exact price of a home you may be able to get a loan for.

For information on buying or selling real estate in Athens and the surrounding counties, call me at 706-207-5290 or click here to email me. If you would like to search for properties available in this same area, please click to follow the link to The Athens Real Estate Page.

So You want to Sell Your Home - Part 12 - The Grand Entrance

OK, you have had a garage sale, put excess clothes and furniture into storage and your yard looks like a well manicured golf course. You are now ready to invite buyers into your home. Another chance for a first impression, where those buyers will actually be spending most of their time if they purchase your home.

Whether you are using an agent or selling the home on your own, or using a limited service agent where you are doing all the showings, etc., make sure that buyer are directed to enter the home through the room that will give the most dramatic, the most favorable impression to them. If you are showing your home, that is relatively easy to manage, you direct the prospect to the right door. If you are using an agent, you will usually not be there when the home is shown. Make sure that any lock-box the agent provides is as close to the preferred entrance as possible and that they put specific directions which entrance to use. After all, they might never see how the chandelier looks framed in front of the french doors if they come in the wrong door.

Give a feeling of space. If you have a narrow entrance hallway, makes sure that it is open and cleared of all obstructions. While you might be used to opening the door slowly so that you don't damage that hall tree, anybody looking at your home will not be. Make sure that there are no loose throw rugs or mats that someone may trip over as they enter your home.

Say "Welcome!" with colorful flowers or candles strategically placed to draw the eye but are out of the way. But be careful of anything that might provide an overpowering scent. Remember, those prospective buyers might not have the same discriminatory tastes that you do. Or, they just might not like a home that reminds them of a flower shop.

Make it look like new. Or at least make it look well cared for. A thorough cleaning is always in order. Make sure the carpet is cleaned and just vacuumed, or the tile is swept and the grout cleaned. Eliminate any hand prints or smudge marks from walls, doors, etc. If any minor repairs are needed, such has nail holes patched, warn carpet or damaged tiles replaced, and that any painting is completed.
You can get hints and tips at how to decorate, not just your entrance, but your whole home, by looking at magazines, websites, or even by touring model homes and open houses. Find something that reminds you of your entrance way and do something similar.

Remember, this is the rare opportunity to make another good first impression. Make the best of it! It will help set the tone for how the rest of the home is viewed.

Home Financing - The USDA 100% Rural Development Loan

A few weeks ago I wrote an article about the types of financing available in today's market. Today, I would just like to expand on just one of those types, USDA Rural Development loans.

The U.S. Department of Agriculture is also in the home loan guarantee business, just like the V.A.
Under it's Rural Development 502 Guaranteed Housing Loan Program the USDA is offering 100% loans to qualified buyers. Here are the highlights of the loan program:

• There is no down payment required. Similar to the VA, this is a true 100% loan program.
  
• There is NO Mortgage Insurance. Conventional loans require PMI or Private Mortgage Insurance on loans of greater than 80%. This is usually added to the loan payment. FHA requires MIP, or Mortgage Insurance Premium, part of which is paid at closing and the remainder in the monthly payments.
  
• There is no Cash Reserve Requirement. Some loans and/or lenders require you to have cash reserves, money left over after closing, to cover up to six months of payments. The Rural Development 502 program does not have that requirement. While I am not a financial planner, it does make sense to me to have some cash reserves on hand after your purchase.
• There is no Pre-payment Penalty. You can pay your loan off early with no penalties. Although this is common in today's market, there are still some loans and lenders that will impose a pre-payment penalty.
• You Don't Have to Meet First Time Buyer Requirements. You aren't getting a tax credit, but, you can use this type of loan when moving from one home that you own to another.
• Both new construction and existing homes are eligible. You can by new are a previously ownded home.
• There is no Seller Contribution Limit to Closing Cost. Unlike an FHA loan, if your agent, or you, can negotiate it, the seller can pay all of your closing costs.
• There is no Gift Contribution Limit to Closing Costs. You may get all of your closing costs in the form of a gift from relatives or friends. You are not required to use your own "seasoned" funds.
• It is a Fully Amortized 30 Year Loan. Payments are fixed over the time of the loan. There are no adjustable interest rates or payments. There is no balloon payment.
• You Can Receive a loan for up to 102% of the Appraised Value. Providing you qualify, you can cover some of the closing costs and/or repairs with a loan of up to 102% of the appraised value.

This loan is not available in Athens-Clarke County or in Watkinsville. However, large areas of Oconee, Jackson, Madison and Oglethorpe counties are eligible for this loan program.

For more information on USDA loans contact a qualifed lender who is experienced with this program.

If you have questions on properties available under this program, or, if you are interested in buying or selling your home in Athens and the surrounding counties and communities please call me at 706-207-5290. Or, you can click here to email me with your inquiries. To search for home in Athens, Watkinsville, Oconee County, Oglethorpe County, Jackson County or Madison County, please visit my website at http://www.theathensrealestatepage.com

So You want to Sell Your Home - Part 11 - Too Much Stuff

How much stuff do you have? If you have been living in your home for any length of time, the answer is probably "too much stuff".

Stuff, no matter what it is: furniture, pictures, appliances, toys, knick-knacks, clothes, etc., only distracts the potential buyer who is previewing your home. The buyer(s) want to picture the home as theirs, not yours. They are trying to see themselves living there. They are placing their furniture in the rooms, their pictures on the walls, their children in the yard, etc. The more "stuff" you have, the harder it is for them to picture their "stuff".

You need to minimize your stuff, or, declutter! That doesn't mean getting rid of everything and living in a bare house. It does mean getting rid of what you don't need to live there.

Start with the small things. Look in your closets to see what is there. Depending upon where your home is you might have four seasons of clothing in your closet. Pack up those clothes that will not be needed in the next few months. If your closets are still overfull, pick out the shoes, shirts, coats, etc. that you will be using. Try spacing your hanging clothes at least 3 fingers apart. If you have shelves in your closet, make small stacks of clothing, and don't crowd them together. Give the feeling of more space rather than less.

Clear your counter tops. In the kitchen limit your counter top appliances to a coffee pot. Place all your other appliances out of the way. Reduce the amount of dishes, pots, pans, etc. in your cabinets. Make them appear roomy. In the bathroom, do the same thing. Reduce what you keep on the counters and clear out those things from the cabinets that your don't regularly use.

Remove most, if not all, of your collectible items from view. This may include display cabinets and curio shelves that you have put in place just to display what you have collected. It allows the buyers to picture there items.

Get rid of pictures. Free up your walls as much as possible. One or two strategically placed pictures in a room are fine, recommended even. But don't have picture walls, especially those picture walls loaded with your family history. Some even suggest getting rid of all pictures of a personal nature. And, if you have pictures, be careful of the content. Risque, religious, political, and other pictures might distract the buyers, and even cause some to reject the home outright. We have a couple of Louis Icart prints, tasteful, but they might be offensive to some. We took them down when we sold our homes since having them.

Do you have too much furniture? Many of us do, at least for certain rooms. Get rid of excess furniture. And what is excess furniture? Any furniture that makes a room look crowded is too much furniture. It also might be that your furniture is over-sized for a room. You might consider temporarily replacing it.

Garages, basements, storage areas: While you may be able to store some of you stuff in these areas, do not fill them up. Make sure that cars can be parked in the garage. Keep your "stuff" from the middle of any of these locations.

What can I do with that excess stuff? There are many options. You can get a storage unit and store your things there. If you are storing a lot of books, or other delicate items, a climate controlled storage unit might be appropriate. Just remember, though, that for items you might need, such as clothing when a season changes, to place boxes, trunks, etc. so that they are easily accessible.

You can give items away, to friends, family or donate them to charity. You can sell items on Ebay or have a yard/garage sale. There are many ways to get your stuff out of the way.

Remember, you are trying to sell your home, not your stuff. The less stuff buyers see, the more of your home that they see. Whether you are using an agent, or trying to sell your home on your own, when it comes to "stuff", less is more!

For more information on getting your home ready to sell, or for any other real estate concern, call me at 706-207-5290 or you can email me with your information request.

April Fool's Day Virus - Conflicker - Removal Tool

The news has been all over the latest April Fool's Day virus that is to hit tomorrow, or actually might have already hit in Sidney Australia and parts of Asia.There does not appear to have been any widespread damage yet.

But, I digress. From the Kim Komando show here is a link to see if your system has the conflicker virus and a removal tool for it.

Conflicker virus removal tool

Also, here is a link to other conflicker removal tools on Kim's site.

BTW, McAfee does not view this as a critical threat, especially if you have been updating your virus signatures on their site.

If you have Windows and have kept up with your updates, you should be ok. But, if not, go to Kim Komando's site and see what she has to say about fixing things.

Attention For Sale By Owner - Alert on Possible Scam

Do you have your home up for sale by owner? If so, please read this through.

A seller that I have been talking with, who has since listed their home, was approached by a couple about the home, while still FSBO (For Sale By Owner) last week. The couple was very nice, expressed an interest in the home and eventually made a verbal offer. The sellers countered and they reached an agreement.

The couple then said that they would be using a VA loan and would get a VA appraisal and have a signed contract. Three days later the sellers and the couple talked on the phone. The husband of the couple informed the seller that the VA would only value that house at about $7000 less than the agreed upon figure, and, that they would require the sellers to pay $5500 in closing costs.

When asked how the VA appraised the home without a singed contract, the buyer replied that the VA checked out the value on tax records. The sellers, fortunately, walked away from the deal.

Now, where is the scam? The VA, nor any lender that I know of, in today's market, will do an appraisal without a contract. And, they will certainly not base that appraisal all on tax records. And, while VA will allow seller concessions, up to a maximum, they do not require them.

It is apparent that the "buyers" wanted to get a much lower than market value price for the home as well as having the seller pay most, or all, of their costs to close. To compound that matter, one of the "buyers" represent their self as a real estate agent. If that were true, this practice appears to be a gross violation of Georgia license law.

This is the first instance of this that I have heard of, but it is one too many. I recommended that the seller talked to the broker where the "buyer" indicated she was an agent. If anyone comes to your door proclaiming to be an agent, make sure that you get a card of theirs, and, if they try anything like this, report it to their broker. The "buyer" might not be an agent, or, might be new and not realize that they are breaking license law. They also might be unscrupulous and want to get a quality home for foreclosure prices. Either way, the broker is responsible for the actions of the agents at their firm and, believe me, will nip this in the bud.

So, protect yourself from predatory buyers. Read my blog, I try to be fair. And, to find out about my offer especially for FSBO's, give me a call at 706-207-5290 or click here to email me with your inquiries.

From the VA Home Loan Information Site, see particularly steps 2 & 3,

FIVE EASY STEPS TO A VA LOAN:

1. Apply for a Certificate of Eligibility (COE).
   
   A veteran can obtain a COE by completing VA Form 26-1880, Request for a Certificate of Eligibility, and mailing it, along with proof of military service, to the eligibility center (see office list at back of pamphlet). Also, veterans who have already begun the loan application process with a lender may request the lender obtain a COE through webLGY, which is accessed through the VA portal. More information about this online system can be found at our website which is: www.homeloans.va.gov.
   
2. Decide on a home to buy and sign a purchase agreement.
   
3. Order an appraisal from VA. (Usually this is done by the lender.)
   
   Ordering an appraisal can be done via the Internet using TAS (The Appraisal System). This is a centralized system that allows lenders easy and quick access to order an appraisal.
   
4. Apply to a mortgage lender for the loan.
   
   While the appraisal is being done, the lender can be gathering credit and income information. If the lender is authorized by VA to process loans on the automatic basis (and approx. 99 percent of all VA loans are processed this way), the loan can be approved and closed upon receipt of the appraised value determination without waiting for a VA review of the credit application. VA has also approved the use of several automated underwriting systems for lenders to use in connection with VA loans. The two main systems are Loan Prospector and Desktop Underwriter. For loans that must be approved by VA, lenders send the credit package to VA. VA staff will then review it and notify the lender of the decision.
   
5. Close the loan and move in.

Buyers - There is Still Money Out There for a Loan - Financing Options

With all of the focus on how tight credit is, you may believe that there is no money out there for a home loan. If that is the case, you are believing wrong. There is still a lot of money available and a lot of lenders who will make that loan. There are even some 100% loans available.

Here is a list of the main types of loans that you can get today:

• FHA - the majority of today's mortgages are being written, or underwritten, by FHA. The requirements are a bit stiffer than they used to be, and the you will need to come up with at least 3.5% of the loan amount to qualify.
• FHA Renovation Loan - there are two types, standard and streamlined. They allow the buyer to renovate a home prior to moving into it. This type of loan can make purchasing distressed or foreclosed properties enticing.
• VA - this is a 100% loan available to honorably discharged U.S. veterans. It can be used more than once, the veteran will just have to get a certificate of eligibility each time he/she wants to use it. All previous VA loans have to be paid off.
• USDA- rural development loan for properties in specific designated zones. This is another 100% loan program. Athens-Clarke County is not eligible but much of Jackson, Madison, Oglethorpe, Oconee, Barrow and Walton County are eligible.
• Reverse Purchase Mortgage - this is a program specifically for seniors over age 62 who can purchase a home for a down payment and have no payments for the rest of their lives.
  
• Conventional - available from mortgage brokers, banks, lenders, etc. Different institutions will have different types of loan programs.
• Owner Financing - sometimes the seller will finance all or part of the purchase price. This may be good for someone with special circumstances who cannot qualify for a loan for some reason but is able to make the payments. A person who is self-employed but with less than 2 years of history might be a candidate for this.

For all loan types (except owner financing) speak with knowledge-able lenders. Not all lenders will be knowledge-able about each loan type. They might not even offer all loan types. And, even if they offer the same loan type, such as FHA Renovation, the programs may be very different. You may want to interview and deal with several lenders and make detailed comparisons before selecting one. And don't forget to get a pre-approval, not pre-qualified, letter. It puts you in a better position to get the home that you want.

For more information on loan types, or, about buying or selling a home or land in Athens and the surrounding counties, call me at 706-207-5290.

Athens GA Women's Council of Realtors Charity Chili Cook-Off Mar. 19, 6-9 PM

The Athens chapter of the Women's Council of Realtors will be hosting it's 4th Annual Chili Cook-Off for the benefit of the Athens Area Homeless Shelter. The cook-off will take place at The TailGate Station, 234 Oak St from 6PM - 9PM Thurs, Mar. 19.

There will be something for everyone, with 12 different chili recipes to sample and vote on. Soft drinks are available also, along with fire extinguishers. The Packway Handle Band will be providing blue-grass music for entertainment.

For more information and for tickets, click on the Athens WCR website.

Come out for some smokin' hot chili and to support a great cause.

So You Want to Sell Your Home - Part 10 - First Impressions are Everything

What is the first thing people see when they come to look at your home? Your yard and other exterior features, of course. They see you lawn, your mailbox, your driveway, your plants and trees. They see the outside of your house.

The home buyer experience starts when the buyer(s) first see the property. If what they see isn't appealing enough to coax the potential buyer to leave the car, it doesn't matter what the inside of the home is like (unless the buyer's agent really knows the home and is can persuasively present a case for it). And even if the buyer(s) go in to look at the interior, they already have had their expectations set for poor maintenance and possible hidden problems. They will take a closer look at the interior, expecting to find problems, sometimes imagining them, that will discourage an offer.

Start from the street and look back at house. Are they shrubs that need trimming that obscure the view of the home? Does the lawn need mowing and weeding, or even re-seeding? Are there dead trees and shrubs that need to be removed? Are there fallen leaves that need raking.

How does the house look? Does it need painting? Are the gutters or shutters sagging? Is the driveway in good repair? Is pressure washing needed? How does that roof and chimney look? Pay close attention to door and window jams and thresholds. Are they mildewed? If so clean them up. Are there signs of dry rot or water damage? If so, have them repaired. Do they need painting? Go ahead and paint them.

Once everything is in good repair, add some inviting features. Place annuals around the mailbox, plant some shrubs, put annuals along walkways, mulch any flower beds, place flowers around the entrance. Provide some color and a cheery perception. Perception is everything with a buyer when they are looking.

The important thing, set the buyer's expectations. A well presented exterior makes a positive impression. It encourages the buyer to view the interior more positively. And, it increases the potential for both an offer and the amount of the offer.

First impressions, if they are very good, are an important step in getting from For Sale to Sold!

Getting to Yes - Negotiating the Deal

Negotiating, we do it every day, in all parts of our lives. When we discuss what to have for dinner, that is a negotiation. When we decide which station to watch, which movie to see, those are negotiations. We do it all the time, often unconsciously. We do it mostly with the little things, and usually it goes very well. We avoid confrontation, sometimes with agility, sometimes not, but we do it.

Negotiating is often viewed as confrontation, with a clear winner and a clear loser, but, it doesn't have to be that way. The best negotiations result in both sides winning, neither side losing. It is called WIN-WIN. Yes, there might be compromise, but it is mutually agreeable compromise.

Whether buying or selling a home, each person wants to get the very best deal that they can. How do we make both sides winners? The simple answer is by doing whatever it takes to make both the buyer and the seller feel good about the transaction. It's getting there that takes the skill.

Here are a few pointers to aide in easing the home buying and selling negotiating process. They apply equally to buyers and sellers:

1. Don't think of this as a win at all costs situation. This is not a contest.
2. Make your offers and counter offers realistic. You, the buyer, are not going to get that house for 10 cents on the dollar. You, the seller, are not going to get paid more than market value for the home.
3. Do not view offers, or counter-offers, as insults. Negotiating is an iterative process, it may often take multiple counter-offers by each party to reach an agreement.
4. Do not immediately respond to offers or counter offers. Take some time to review them. Determine as seller if you can live with what you will net from the offer. Determine as a buyer if you can afford that additional stipulations.
5. You can substitute items of value for money. What does that mean? As a buyer, you can meet an asking price but ask for the appliances to remain, or for a home warranty. As a seller, you can agree to concessions, such as paying a certain amount of the costs to close, but, you can ask for an earlier closing date, or a higher price to cover some of the closing costs.
6. Refrain for providing personal information that may provide leverage to the other party. For instance, as a seller, don't mention that you are being transferred. As a buyer, don't mention that you absolutely love the home and it is what you have dreamed about all of your life.
7. Set a reasonable deadline for response to offers and counter offers. Provide days rather than hours for a response, especially if it involves providing something that is dependent upon the actions of a third party, i.e. getting a survey done, it may take a couple of days to find a surveyor and get the cost of having the survey completed.
8. Keep quiet. Once your offer or counter has been submitted, wait. Don't contact the other side. It puts you in a position of weakness.
   
9. Keep your emotions out of the negotiating process. This is the hardest part of the process, for many, an impossible part of the process. The buyer does not want to pay for you memories of the property. The seller is not there to enable you to afford a boat with the money you will save.
10. At sometime, BAFO. At some point one or the other side will reach BAFO, or Best And Final Offer. If this is the case, make sure that it is stated in your counter offer. It may be the most the buyer can afford, or is willing to pay for the home. It may be the least the seller will take without any further concessions. Either way, when this point is reached, be prepared to say Yes or No. Don't get angry and don't take it personally.
    

And here is my last tip. Get someone to handle the negotiations for you. This could be your Realtor buyers or sellers agent or it could be an attorney or someone else you hire specifically for the negotiation. Some Realtors will handle just the negotiations, and the paperwork for you. But this person should be totally objective about the transaction and able to remain unemotional. This will assure that personalities do not enter into the process.

As your sellers representative, I will present all offers to you, in a very positive manner, along with an analysis of what this means to your bottom line; your net proceeds, your closing date, etc. I will give you time to review the offer, and then we will discuss it. I will present the pros and cons, let you know whether it is reasonable to market value. We can then work out any counter offer strategies, or even a flat out rejection (not recommended).

As your buyers representative, I will work with you on preparing a reasonable offer, to market value and any concessions that might be reasonable, also. Once a counter is received, I will perform the same steps that I would with a seller.

Either way, I will be working to get this negotiation to the point of Win-Win regardless of how many iterations this may take. Whether you use me, another Realtor, an attorney, or do it yourself, this should be your goal; Getting to Yes, Getting to Win-Win.

For information or assistance in buying or selling your home in Athens and the surrounding counties, please call me at 706-207-5290 or click here to email me with your questions and inquiries.

Time for a Change - or Just Change Your Time - Spring Forward this weekend.

This weekend marks the beginning of Daylight Savings Time for 2009. At 2:00 A.M. on Sunday morning, resulting in a "short weekend" for those of us that live in states other than Hawaii and Arizona.

It is also a reminder to change the batteries in your smoke alarms and other alarms, such as carbon monoxide, if you have them. Whether you want to be a purist and remain awake to change you clocks and watches at 2:00 A.M. or you prefer to make the changes before going to bed or after waking up, it doesn't matter. Just don't be late to church on Sunday or work on Monday.

For information regarding buying or selling a home in Athens-Clarke County, Oconee, Oglethorpe, Madison, Jackson, Barrow or Walton Counties, call me at 706-207-5290 or click here to email me with your inquiries.

So You Want to Sell Your Home - Part 9 - Write a Book

Really, writing a book will help you sell your home! It doesn't have to be a long book, or even have much of a plot. You don't even need to write a lot of original content.

When I list a home, I work with the sellers putting together a marketing book. This is a book that is prominently displayed in the home and that buyers and buyers agents have easy access to. They may even carry it with them as a reference as they tour the home and property.

So, what should this book include? Let's start with the cover. The cover should be a nice quality binder with a very appealing picture of your home, at it's best. It should also show the address, to help imprint your home in the potential buyers mind. I use a quality binder because, unlike paper folders, the binder is less likely to "walk off".

So much for the outside, what should you include on the inside:

• A letter from you, the home owner. This should be the very first item in the book, and, one of only pages that will be truly original thought. This should be a short letter, one or two paragraphs, of what you love about your home, perhaps why you bought it, what memories it provides.
• A description of your home clearly pointing out all of the highlights. Describe the granite countertops, the master bath, the hardwood floors, all of the features that you feel are the selling points.
• Pictures of the property - especially the outside, during the different seasons.
• A plat of the property. If you don't have one, you can usually get one at the courthouse.
• A floor plan of the home and any other structures. If you have one available, it is a great tool to help a buyer get a feel for how the home flows.
• Square-footage of key rooms, which include but aren't limited to:

Kitchen
Dining Room
Living Room
Family Room
Master Bedroom
Other Bedrooms
Bonus Room
Basement

• Area information:

dining
hospitals
parks
entertainment
etc

• Commute times to schools, shopping, etc.
• What improvements have you made or had made.
• Copies of your last utility bills, up to 12 months if possible
• A property tax page detailing how much your property taxes are.
• Area schools, just the addresses types. Do no evaluate the schools.

That's it, a simple book but it can make the difference in selling your home or not. So, whether listing with an agent, or selling on your own, write a book.

So You Want to Sell Your Home - Part 8 - Standing Out From the Competition!

In previous posts I have emphasized that price is the number one issue in getting a home sold. However, what that really means is that the price must reflect the condition of the home being sold.

Real estate buyers, especially in today's market, look very closely at price and condition. Buyers believe that what they see is what they get and what they see determines what they are willing to pay for the home.

Buyers typically prioritize, whether consciously or not, a home in this order:

1. Curb appeal
2. Entryway
3. Kitchen
4. Master Bedroom & Bath
5. Living Areas
6. Other Bedrooms
7. Backyard

Curb appeal, believe it or not, has a major impact on how the buyer(s) view the rest of the house. It is the first thing they see when they approach your property. It sets not only expectation, but also the perception of how they view the remainder of the home.

In future posts, we will discuss how we can address curb appeal, as well as the remaining six priorities of the buyer, following the staging formula of 3P - 2F:

• plantings
• paint
• pictures
• fixtures
• furnishings

For information on getting your home ready to sell or for a copy of my 99 Tips for Getting Your Home Ready to Sell, call me at 706-207-5290 or click here to send me an email request.

Thinking of Buying a Home - Make a List, Check it Twice

When you go grocery shopping do you have a list of items that you want or need? Perhaps, if you are like me, it's one that your wife puts together for you. Whether it is just a few items or a couple dozen, we always grocery shop with a list.

I see a lot of grocery shoppers with lists. However, I see very few home buyers with lists. Sure, they all have some vision of a home, the home of their dreams, they can see it in their minds. But when out looking at homes for sale, they don't see it in reality. That doesn't mean that the home of their dreams is not out there, it often only means that they really aren't sure what the home of their dreams looks like.

How can you increase the chances of finding the home of your dreams? It really isn't that difficult. Just Make a List. I recommend making what I call the 15 list. First, make a list of 5 attributes that the home of your dreams must have. For seniors, or for couples with an infant or planning on babies, one must have might be a single story ranch or similar home. For families with older children it could be a split bedroom plan. A must have list could look something like this:

Our Dream Home Must Have:

1. Minimum 3 bedrooms, 2 baths
2. Split bedroom plan
3. Handicapped access
4. Fenced backyard
5. Low maintenance yard

Second, list 5 more items that would be nice to have, they could look something like this:

These items would be nice to have in our Dream Home:

1. Granite counter tops
2. Finished basement
3. 2 acres
4. 10 minutes from work
5. brick exterior

And finally, make a list of 5 items that you absolutely don't want (for some people, this is the hardest part). That list could be something like:

These things would make our dream home a nightmare:

1. swimming pool
2. adjacent to school or park
3. gas appliances
4. next to cemetery
5. fixer upper

Note, the above lists are only examples and not suggestions as to what you should want or not want in your dream home. They will be different for everyone. Review this list often, both before you start the home search process and while you are looking. You may be surprised to find that the must have and desirable items may swap places with each other, or even be replaced by other items you hadn't included originally.

You don't have to limit the number to 5 in each category, or even the same amount of items in each group. You might have 7 must haves, 10 nice to haves and only 3 absolutely no way will our home ever have these.

So, when you first think about buying a new home, whether it is your first, or or your tenth, make that list. If you are buying with someone else, make sure you have one list that includes both of your needs and excludes both of your absolutely nots.

For more tips on buying, selling or investing in a home or real estate in or around Athens, GA call me at 706-207-5290. Or you can click here to email me with your inquiry. Please visit my website at The Athens Real Estate Page for information on local properties available.

Athens GA Area Seniors to Get Income Tax Assistance

Athens GA Area Seniors to Get Income Tax Assistance

AARP is once again offerring free tax preparation assistance for low to moderate income taxpayers, with a focus on seniors in the 60+ age group. Help will be available now through April 11 on a rotating schedule among several sites.

Assistance is available at the following locations on the days and times listed:

Oconee County Library - Mondays , 1 - 5 PM

Oglethorpe County Library - Tuesdays, 1 - 4:30 PM

Kroger's, 1720 Epps Bridge Parkway, - Wednesdays - Saturdays, 9:00 A.M. - 1:00 P.M.

Athens Council on Aging, Hoyt St. - 9:00 A.M. - 1:00 P.M.

For more information, such as what papers and information will be required, call 706-543-9511.

This is a nationwide service from the AARP Tax-Aide group. For a location near you, outside of the Athens, GA area you can go to the AARP Tax-Aide Locator.

For information on Athens GA Real Estate, as well as the surrounding counties call me at 706-207-5290. Or you can email me or check out my website, The Athens Real Estate Page.

Get Ready for Your Credit Score to Decline - New FICO Formula Kicks in This Month

FAIR ISAAC is changing the playing field again, implementing it's latest version of credit scoring FICO 2008. And it doesn't appear that the change will be leveling it. The three major credit reporting agencies will be rolling out the new scoring system this year, with Transunion deploying it in January, Equifax in late spring and Experian at some later date.

The new FICO is touted to better predict the likelihood of a default on the part of the borrower. However, many of the changes appear to be designed to lower credit scores. FICO 2008 will place more emphasis on available credit, not just balances. So, even if you are not carrying a balance, if your credit line is reduced, your FICO score could be lowered. It appears, under the new scoring system, the more available credit you have, the better your score would be. (I remember having been rejected for an airline credit card in the early 90's because I had too much available credit even though most of it was unused). You will also have your credit score reduced by having only a few open and active credit accounts.

Supposedly, there are three changes that will benefit credit consumers.

• It will ignore debts gone into collection if original debt is less than $100
• It will not punish single credit set-backs, such as write offs or repossessions as long as all other accounts are in good standing
• It will continue to use some "authorized-user" information (although this is only a change from the fact that they were going to discard it entirely).
  

What will this do to the real estate and mortgage industry? I don't see anything good, at least for the first few months of implementation, especially since at any one time the credit agencies may be using different versions of FICO. That can only lead to confusion. Perhaps, in the long run it will lead to fewer defaults, but until it has rolled out completely, the only change that I can see is some tightening.

Personally, I know that my current FICO score is around 800. I am expecting it to drop just a bit since I am using my cards less and my only installment loan will be paid off in April.

Do you know what your score is? You can get an estimated range here.

Click here to read the complete article about the new FICO 2008 scoring system and how you can take steps to mitigate any lowering of your credit score.

Only 15 Days Left for Freddie Mac 3.5% Closing Assistance Program

Feddie Mac's Homesteps closing assistance program ends on Jan. 31. You still have 15 days to get a contract on a Freddie Mac Homesteps home (see me blog post about the program) and close by Mar. 14 this year.

This is an excellent program to help buyers get some assistance on their home purchase.

This looks like a helpful program to assist both buyers getting into homes and to help Freddie Mac sell off some of it's owned property. For complete details clink on the program link.

For more information on this program, and for buying or selling real estate in Athens and the surrounding 5 counties please don't hesitate to call me at 706-207-5290 or you can click here to email me.