Property Source Pros is NorthEast Georgia's Premier Real Estate Resource from Atlanta, GA to Greenville, SC

Short Sale - Do You Know What One Is?

We've seen the phrase "Short Sale" increasingly in real estate ads over the past year.  I've found, however, that many Sellers, Buyers, and yes - even sometimes the Realtors who are writing the ads - do not actually know what the phrase means.

Seems easy enough to figure out, right?  Two small words learned in grade school.  Most buyers have determined by now that the phrase indicates the Sellers are more than willing to sell their house at a great price.  But these two little words mean much more than that . . . they represent an organized process requiring work and cooperation from the Seller, the Seller's Agent, the Buyer, the Buyer's Agent, and a bevy of people working for the Seller's Mortgage Holder.

A Short Sale is basically convincing the bank holding the current mortgage to take less than a full pay-off of the mortgage balance owed on a home, and then write off the rest.  A well executed short sale is a positive experience for everyone involved:  Banks avoid a foreclosure, Realtors can sell a house that otherwise would not sale, Buyers can get an excellent purchase price, and Sellers can sell a house they are "upside-down" on without ruining their credit.  But don't step into the process lightly or expecting a quick turn-around because not every listing agent understands what is required of them prior to advertising a short sale opportunity.  Poorly executed short sales can be extremely frustrating to sellers, buyers, and the realtors who work as buyer's agents.

In today's market, banks understand a property's fair market value may have been reduced by no fault of the owner.   They also have their hands full with foreclosure properties waiting to sell, so they are frequently willing to allow a short sale when they have an able buyer and distressed seller rather than taking on another foreclosure.  But, that doesn't mean they will entirely neglect to analyze the situation and simply jump to accept whatever the buyer is offering. 

Unless the listing agent has performed their job prior to advertising with those two little words (which, is unfortunately not always the case), a "Short Sale" offer typically takes four to six months to close - if it closes at all.  On the other hand, if the listing agent has done their job, a short sale offer can be accepted and closed in just two weeks!

So, what is the listing realtor's job when representing a seller with a short sale?  Well, first - they must obtain approval by the bank to offer the property as a short sale opportunity!

Before approving a property for a short sale, the mortgage holder will analyze the current fair market value of the property as well as the Seller's financial situation to assure they can no longer afford the house.  They are rarely going to accept less than is owed on a mortgage simply because the owner is impatient to sell the property.  Thus, not every property nor every seller will easily qualify for a short sale.  To prevent frustrating the buyer and avoid misleading advertising, the listing agent should work to provide all necessary information to the mortgage holder proving the property is acceptable for a short sale - prior to advertising it as one.

An experienced and successful short sale listing agent is critical to the process proceeding smoothly.  Once the bank has reviewed the documentation proving that the fair market value has fallen below the loan balance, and reviewed the seller's financial situation proving they are unable to continue paying for the property by the original, agreed upon terms, they will be able to make the determination to allow a short sale.  At this point, and not until this point, the listing realtor should begin advertising a property as a short sale opportunity. 

If your listing agent has recommended advertising your property as a short sale yet they have not mentioned working to obtain approval from your bank, they likely do not understand the full process and simply believe the phrase is an easy way to motivate buyers to make offers on the property.  If you wish to persue a short sale, consult an agent with the experience to successfully guide you through the process. 

Call or email Property Source Pros to discuss listing your property as a short sale, or to discuss purchasing a property currently being advertised as a short sale.  I can walk you through the entire process, give you an honest opinion on where it stands, and help you navigate a smooth short sale!  Julie@PropertySourcePros.com; 706-376-PROS (7767).

Real Estate on the Cheap: How to Craft a Lowball Offer - MSN Real Estate 10/19/2011

I guess October 19th was my day for reading MSN . . .

As an real-estate broker who works frequently as a Buyer's Agent, I have been making "Lowball" offers on REO's (and even some seller-owned) properties for years.  Many of my investor clients have made hundreds of thousands of dollars by allowing me to guide them to the best REO's, hammer out the best prices, assist them with determining the correct items to repair for increasing the property's worth, and then reselling.  However, I have learned, the rules are different for buyers who are looking for a great deal on their dream home.  We can still negotiate fabulous deals, but will loose the home if we try to be as agressive as those investors who are not emotionally involved in the property.  It takes a lot of research, patience, and luck to land the fabulous buys.  How to approach the negotiation shouldn't be taken lightly . . .

Real estate on the cheap: How to craft a lowball offer.  A buyers market isn't necessarily a free-for-all.  Here are tips on how you can score a great bargain in your next home purchase. 

By Leah Culler of MSN Real Estate

We all love getting a good deal, particularly in this economic climate.  Whether you're saving 75 cents on a bag of frozen french fries or "$5,000 on a new home, frugality is in.  That's the idea behind "Real estate on the cheap," on MSN Real Estate.

The art of the lowball offer:  To kick it off, let's talk about that all-important step after you've found your dream home: submitting the offer.  If you're following the numbers, you're probably aware that most U.S. markets still favor homebuyers.  That may lead you to believe that sellers are desperate and will take any offer you throw at them . . . You'd be wrong.

While sellers may be more willing to negotiate now than they were in 2006, for instance, you still must perfect the art of the lowball offer.  The key is research.  An agent in Northern California states, "you must know everything about the market, the property, the seller and yourself."

The Market: There is no such thing as a national real-estate market, which means all this talk of a buyer's market may not even apply where you live.  Even in a seemingly depressed market, certain price ranges and amenities are still sought after and may be moving quickly.  Your real-estate agent can find out whether comparable homes are selling quickly or slowly and at, above, or below asking price.

The Property: How does the price of the property compare with those of comparable homes?  How long has the home been on the market?  The longer it has been listed, the more likely the seller may be to entertain lower offers.  "If it has been on the market for months or even years and there have been no offers, at some point the seller is going to give up and either accept a much lower price or just resolve not to sell it," Byrd says.

Another factor is whether the home will require a lot of work, says a real-estate agent in Virginia Beach, VA.  "One house had a tarp over the roof, and a lot of investors were avoiding it because they didn't want to deal with it,' she says.  "I had a group make a low offer, and it was accepted. If you're willing to do the work, you can generally find good deals on fixer-uppers."

The Seller:  If sellers already have purchased another home or are starting a job in a new city and must sell quickly, that will affect their willingness to settle for less.  Being flexible on the terms of a contract also can translate into a lower price.  For example, if the seller plans to move to a new home still under construction, he might accept a lower price in return for a rent-back agreement allowing him to stay in the home for some period after closing.

Yourself: Are you in love with the house or with getting a good deal?  If the former, you would probably want to offer something closer to market value in order to lock it up, particularly if it's in a market with intense buyer competition.  If the latter, take a shot at whatever is in the lower hemisphere of fair and see how things develop.

A buyer's best bet for finding a great deal is to buy a short-sale property.  That said, you must be sure you're cut out for what is usually a long, difficult process.  You can get a bargain when buying a foreclosure, but those homes are typically priced based on what is owed to the bank rather than their actual value (unless, of course, it needs serious repairs).

If you're looking at a distressed property, be realistic about whether you can handle buying a property "as is".  If you've never picked up a hammer, the money you save on the purchase may not be worth the hassle and expense of hiring contractors to make updates - or even to make the home livable.

I have made some changes, paraphrasing, and ad-libs to this article.  To read the original article, go to http://realestate.msn.com/real-estate-on-the-cheap-how-to-craft-a-lowball-offer.

What Real Estate Agents Do For Buyers . . . MSN Real Estate October 19, 2011

I saw this article on MSN Real Estate a few days ago, and thought it was a pretty good one for first time home-buyers to review.  Everyone has heard "It is a Buyer's Market", but fewer people than one would expect actually choose a Buyer's Agent to assist them with their purchases.  Likely this is because few people understand Buyer's Agency, or that - unless they specifically enter into a Buyer's Agency agreement - the Real Estate Agent helping them is a Seller's Agent and is obligated to represent the Seller in the transaction.   If you would like more information about Buyer's Agency in Georgia or South Carolina, please call 706-376-PROS (7767) or email Julie@PropertySourcePros.com anytime, and I can help guide you through the process . . .

What real-estate agents do for buyers; First-time homebuyers research online but use real-estate agents for complex tasks.  By Michele Lerner of Bankrate.com

Homebuyers, including first-time buyers, usually use the Internet for the preliminary work of finding homes for sale and collecting information on neighborhoods and recent sales.  But those buyers, particularly if they are first-timers, should use real-estate agents to indentify long-term value in properties, negotiate prices and ensure that deals go through.

Functions of buyer's agents: "Many first-time homebuyers will not be purchasing their dream home as their first place, and (they) often have difficulty seeing the true value in homes," says a real-estate agent in Seattle.  "Since may of these buyers will be moving in the future, I think it is a good idea to think about resale when the buyer is purchasing.  Buyers may not be aware of things like the problem of living on a busy street, or know to check on issues with homeowner-association covenants."

A buyer's agent can point out potential issues that could affect the resale price of a home and suggest changes to increase the home's value.

"I have a three-legged approach to working with buyers," says an associate broker in Arlington, Mass.  "I start by getting to know what the buyers want by picking up on the hidden signals that a prospective buyer shows when they see a home.  They may not know what they want, but they can feel what they want.  When I'm showing a house that absolutely does not work, I dig into why it doesn't work.  When we see other houses that may be a better fit, we discuss what does work for them and why." 

The other two parts of the approach are negotiating a transaction and bringing that transaction to settlement.  "The most important function of a {buyer's agent} is negotiating a good deal on behalf of the buyer and educating the buyer about the market," says a managing broker in McLean, VA.  "First-time buyers should rely on their Realtor to provide them with data about comparable homes that have sold, how long a home has been on the market, what homes haven't sold and all the activity that has been happening in the local real-estate market.  Ultimately, it is the buyer's decision what price and terms they wish to offer.  However, buyers should be able to rely on their Realtors to guide them toward an educated offer on the home."

The agent points out that negotiation occurs not only at the beginning of a transaction over price and terms, but also possibly after a home inspection, an appraisal and at other times between contract and closing.

Fair-housing laws and real-estate agents:  While real-estate agents can help buyers in myriad ways, there are some things they cannot do:  "Fair-housing laws prohibit discrimination.  Thus, an agent cannot steer a client to or away from particular neighborhoods based on their knowledge of an area's demographics.  Further, agents cannot explicitly describe a neighborhood based on racial, religious, age or other demographic criteria.  The agent can point buyers to websites and other reference sources where buyers can discover this informaiton for themselves."  As one realtor interviewed says, "Our job is to talk about the home, not the people."

Working with other professionals:  First-time homebuyers need to recognize that they must work with other professionals during the homebuying process, such as an attorney, inspector, and mortgage lender.  "Agents are not lawyers, home inspectors, mold experts, financial advisers or tax advisers.  While a real-estate agent can give some general background information in each of these areas, they cannot claim to be an expert and must suggest that the buyer retain the services of one of these other professionals should the need arise."

The biggest concern for most buyers today is whether a home will keep its value.  An experienced buyer's agent can provide a buyer with the local market knowledge needed to make an informed decision about what to buy and how much to spend. 

I made some changes and paraphrases for this blog post.  Read the original article online at: http://realestate.msn.com/what-real-estate-agents-do-for-buyers

An Entire Year - Make that Life Time - of Changes and Growth!

If you've followed my Blog from the beginning, you know two things: I only post when I really have something interesting to say and I started my own company about this time last year.

I have to admit, I haven't really allowed myself the personal indulgence of blogging since I started Property Source Pros last year.  All of you entrepreneurs out there, and hopefully those of you who have considered being an entrepreneur but haven't become crazy enough to make that jump yet, surely understand.  The past year has been a year of growth, tears and happiness, success and failures, worry and elation, hope and even occasionally depression . . .  Starting your own company lends HD definition to every possible adjective and emotion.  I've always felt the best opening line of any book was in "A Tale of Two Cities" . . . "It was the best of times; it was the worst of times", but I never truly appreciated what that meant until I started my own company!

However - a year later, even in a horrible real estate market, we have had more successes than failures.  With offices in Hartwell and Lavonia, and agents in Atlanta, Athens, Hartwell, and Savannah.  We have over $12.5 million in super listings and owe our success to our 6 amazing, friendly, successful, college educated agents.   We have 15 residential properties under our management and several commercial properties for lease from Athens, GA to Anderson, SC.  So far, we have accomplished every goal we set out to accomplish, and are hoping for greater success as we continue to grow.

So, it was time - I felt - to get back to my blogging nature!  Please don't hold it against me if I am unable to blog more than once per month, but feel free to email me anytime at julie@propertysourcepros.com if you have specific questions. 

In the meantime, I am starting a new fun monthly report on the sale trends called, What's Hot and What's Not.  And, as always, look for my views on particularly new or popular real estate trends.  I also intend to start blogging those articles I read which I find interesting.

All of my blogs should also be posted to my Twitter account of "Source Pros" and my Facebook account.  Coming soon, we plan to add a Property Source Pros Facebook account to discuss only professional aspects of our real estate work in the Hartwell, Georgia area.

Thank you again for following my blog, and I hope to hear your views, opinions, questions, or critiques soon!

Best regards,

Julie Haley

Broker / Owner

Property Source Pros

What's Hot and What's Not??

In Hartwell, Georgia - home of Lake Hartwell - the real estate preferences change often!  This is a new monthly post I hope to update for you guys . . .

What's Hot?

Lake Homes under $350k

What's Not?

Lake Homes above $550k

What's Hot?

Investment & rental properties under $100k

What's Not?

Investment properties topping $100k

What's Hot?

Commercial rentals

What's Not?

Entrepreneurs planning for an opening in Hartwell after lake season

What's Hot?

Cooling down from the weather on beautiful Lake Hartwell

What's Not?

Anything that requires being inside and not enjoying the lake!

Come enjoy Lake Hartwell this summer!  We have vacation rentals; long term rentals; lake homes and lake lots for sale all over Lake Hartwell.  Visit Property Source Pros today!  706-376-PROS (7767); www.propertysourcepros.com.

Owner Financing vs Lease Purchase??

So, we've all heard the nightmare stories of dealing with obtaining bank loans these days.  Add to that, the fact that foreclosure properties have flooded the market and driven down prices for Sellers, and you get a large number of Sellers battling back by actively participating with Seller financing to move their property.

Recent lending adjustments only rarely allow Sellers to contribute costs to Buyers to allow them ease of buying (perhaps to assure that REOs are being considered if anything is being sold).  That leaves us with two primary methods for Sellers to facilitate the sale of their properties:  Owner Financing or Lease Purchase.

Most people don't know what the difference is, or even what those terms mean.  I have many Sellers who are participating in both programs; I have closed many under both terms over the past few years, and there are distinct differences.  So, pull up a chair, grab some coffee, and find out . . .

Owner Financing:

With Owner Financing, there is an actual closing.  The Buyer takes title to the property with the Seller providing a (typically short term) first "mortgage".  Essentially, with owner financing, the Seller becomes the bank. 

This is the better of the two options for everyone involved in the process, but the process has two basic requirements which are difficult to meet: 

1. The Seller must own the property outright, or be close enough to paying off his own mortgage that a downpayment can satisfy the pay-off.  You see this most often with inheritance properties or investor owned properties, though many times on Lake Hartwell a Seller has owned a lake property long enough to have paid it off or they purchased their second home with cash. 
2. The Buyer must have a substantial downpayment.  Remember I said with owner financing, there is an actual closing.  The Buyer must have a downpayment large enough to convince the Seller to take it off the market, but also large enough to pay the closing costs, inspections, and to pay the Realtor Commission (yes, providing our services is actually how we make a living!).  Seems unbelievable a Buyer could have money yet be unable to obtain a loan, but it happens.  I've seen it most often with a Buyer who relocated to the area and has a home they cannot sell elsewhere, but also with a Buyer who has a small mar on their credit which needs time to season, and sometimes even a Buyer who wants to work their way with equity below the "jumbo loan" mark so they can obtain a better interest rate.

On the rare occassion when you have a Buyer with money and a Seller who owes no money, Owner Financing is a perfect scenerio.  The Buyer is responsible for taxes, insurance, upkeep, and maintenance.  The Seller makes more money from the sale because they pocket two to three years of additional interest income.  It can close very quickly, and the Buyer is able to gain equity as they continue to make payments so refinancing is easier than a purchase loan. 

The downside is - just like any loan - the Buyer could fall behind on payments.  For my clients, I work to prevent this from happening in two ways: I thoroughly check the credit and background of the potential Buyer, and I assure the Buyer is paying, on average, at least a 15% downpayment- which they are not likely to walk away from and lose.

However, if it does happen, in Georgia the Seller can foreclose quite simply by accelerating the balance due, running notice of foreclosure in the local newspaper for four weeks, and foreclosing on the court house steps. The Seller still retains the initial downpayment, the monthly payments made prior to the foreclosure, and they take the house back, ready to be sold again.  I love owner financing and all of my clients who offer it!

Lease Purchase:

Lease Purchase is an entirely different animal.  There is no closing.  The Seller continues to own the home and is responsible for taxes, insurance, maintenance, etc.  The Buyer has no deed to the property, and generally doesn't pay much more than a security deposit to get into it.  The Buyer does have slightly more "pride of ownership", but it is still primarily a tenant/landlord mentality.

The lease purchase is typically used instead of owner financing when the Seller is not in a position to pay off the loan on their home and the Buyer is not in a position to put down a large downpayment.  We see these more often in situations where Sellers are a little desperate to get out from under it and the Buyers LOVE the home, but are not able to get a loan to purchase it.  Though, often investors or builders who were left with inventory but aren't willing to make the "business decision" to let it go back to the bank will also participate in this process just to keep getting by in hopes of a better tomorrow.

Because there is no closing until the pre-determined end of the lease purchase time frame (which is difficult to estimate since we are more often than not just hoping the Buyer can get a loan in the future), no one really gets paid.  Sellers and Realtors are holding on indefinitely waiting on a payoff, and Buyers are not gaining equity towards the home (another lending adjustment . . . there are only certain situations in which lease purchase payments are allowed to apply towards equity or earnest money in the home.).

In my opinion, the worst part of the Lease Purchase scenerio, however, is the horror stories I've heard from Buyers who actually put down a decent downpayment, improved the property, and paid faithfully over the time frame, only to end up with the bank's representative on their front steps offering them "cash for keys".  Some Sellers, despite their best intentions, just aren't able to use the money of a lease to prevent them from loosing the house to foreclosure.  So, there has been more than one crying Buyer on my porch steps claiming another Realtor set this up with this lease purchase scenerio, but now the Seller is being foreclosed on and they only have 2 weeks to move out of their house and find another.

I, personally, will not even entertain the idea of a lease purchase for my listing clients unless they allow me to manage the property - including making mortgage payments and escrowing to pay taxes and insurance when due.  It isn't that I don't trust my clients, it's just that after a while, as a lease purchase drags on, the Sellers - more often than not - see the Buyer as a person who falsly lead them to believe they would be able to get a loan when circumstances may still not allow it, didn't put enough earnest money down to put them in a better position, and have nothing in the house.  I personally have a property on lease purchase right now and adore the tenant/buyers, but am so ready for them to finally just buy the house!!!

Mix the unsure time frame of closing and the fact that times are like they are, and Sellers could too easily find the temptation is there to use the monthly rent money for the new set of brakes their car needs or the new set of braces their child needs.  In my opinion, Lease Purchases need to be run through a Realtor Trust Account, or both Buyer and Seller are simply setting themselves up for failure.

That being said, in the hands of a reliable Realtor, a Lease Purchase can help both a willing Seller and a willing Buyer find one another and help one another through until the time comes when the ever difficult to obtain bank loan finally comes and they both accomplish their goals.  So, along those lines, Lease Purchases are another God-Send allowing us to work around the banks' criteria to eventually bring two great people to a successful meeting of the minds.  

With everything I've said, please don't get me wrong - many people still obtain bank loans every day and close on their properties (within 45 to 60 days) the old fashioned way.  There are still 100% bank loan products out there, and definitely FHA 3% down loans.  But, if you really want to sell or buy and are concerned you aren't going to be able, call me and let's look outside the box to determine if there is something else we can do to move things along! 

The best moves for home buyers and sellers:from http:/money.cnn.com

Plenty of forces,from overly cautious lenders to inaccurate appraisals,are wrecking real estate deals right

now. But one of the biggest roadblocks to getting a house sold these days is the disconnect between buyers

and sellers.

In general, sellers have gotten more realistic in pricing their homes than they were right after the housing

bubble burst, but agents say that many still don't grasp how much they must concede to close a deal. And

buyers are still spraying lowball offers around in hopes that sellers will be desperate enough to bite.

Take such unreasonable expectations, multiply by two, and what do you get?  "A standoff".

With the busy summer home-sale season drawing to a close, there's little time to waste. Whether you're

trying to unload your place or land a new one, follow these do's and don'ts to negotiate the best deal--

fast.

If you're buying

Don't say: "I'll pay 85% of your asking price and not a penny more."

Instead: look for homes that are fairly priced and make a reasonable offer. "Coming in about 10% below

list is a good starting place for negotiations now. Yes, you have the upper hand in most markets, but the

average homebuyer is paying only 2.7% below list price. Set your expectations accordingly. you can always

ask if the seller is willing to bridge a gap in other ways--for example, by picking up your closing costs.

Don't say: "I haven't put my house on the market yet."

Instead: List your current home before you start shopping seriously for the next one. Because it takes

almost three months to move a house these days, sellers are loathe to write home-sales contingencies

into purchase contracts. You'll have far more leverage if you've gotten rid of your house before you start

negotiating: Sellers know there's less chance of the deal falling apart. What's more, you'll know exactly how

much money you can put into your digs.

Don't say: "This is my dream house."

Instead: Stop imagining the great parties you'll throw and gird yourself to walk away if the seller won't

make reasonable concessions. Your ability to abandon negotiations is your powerful bargaining chip. Given

that plenty of other homes are on the market now, finding another place to love shouldn't be too hard.

You might let the seller know that. Nicely.

If you're selling

Don't say: "You're offering how much? Forget you!"

Instead: When bidders lob low-balls at you, thank them for their interest--and ask that they come back

with earnest offers. "If you become offended, enraged, or unreasonable, you've blown any chance at negoti

ation. These days many buyers are just testing you to see how big a discount they can get. Point the bidder to comparable recent sales that support your list price.

Don't say: "I know the deck was rotting."

Instead: Pay a few hundred dollars to get your house inspected before you put it on the market. Then

arrange to make any necessary repairs yourself. Taking care of any inspection issues upfront helps

sellers limit the points that buyers can negotiate on.

Don't say: "It might take us a while to move out."

Instead: Make sure to tell buyers--especially those who might have children starting school this month--

that you're willing to scram pronto,if possible. That will help you stand out from any short sales in your

area, which may have lower list prices, but can take months to close. "If the buyers have a strict time

limit, they're going to pay more money to get into a house quickly."

Real Estate Showing Signs of Life in Anderson Area

This article was originally posted online at independentmail.com/news/2010/jul/29/real-estate-showing-signs-life-anderson-area:

Sales of homes in the Anderson area are beginning to recover, if slowly, local Realtors said. and the median price of a home also has crept up, according to statistics from the South Carolina Realtors MLS.

Upstate South Carolina, including Anderson and Oconee counties (counties surrounding Lake Hartwell), survived the precipitous drop in real estate sales and home values during the housing meldown in 2007 and 2008, but did not escape entirely, real estate agents said.

A part of the market, lake homes, was hit by a major drought the same time home sales declined, and home buyers in general went into hiding as the economy took a nosedive.

But reports from the Realtors' group show a 20.8 percent increase in home sales in the area when comparing sales in the second quarter of 2009 to the second quarter 2010.  At the same time, the median price of homes increased 0.5 percent, from $122,000 to $123,000.  Median means that half of the homes were worth more and half were worth less.

The report covers the Western Upstate counties of Anderson, Oconee - which make up the major portion of the listings.  Real estate website Zillow.com reported that year-over-year figures from May 31, 2009 to May 31, 2010, show Anderson County sales were flat, with no change, and the median home value county wide was $96,900.  Realtors in Anderson said the market seems to be at a bottom and turning up.

"We definitely see a trend," said a broker in Anderson.  "The phones are ringing more, and there seem to be more buyers out there."  The same broker said buyers in higher price ranges are starting to reappear.  "We've seen a little uptick in activity and buyers in the $200,000 to $400,000 price range are coming out."

Area homes for sale are staying on the market longer than in the boom days, but the situation is improving.  The average number of days on market for Hartwell Lake homes is six to nine months.  But for homes priced $150,000 to $250,000, the average is 175 days.  Homes priced $100,000 to $150,000 are on the market an average of 145 days.

Sellers are pricing homes a little more realistically.  The majority know the market is what it is and are more realistic as well.

Another Anderson area broker said she's seen the market improve since the introduction of the $8,000 federal first-time home buyer credit.  "The incentives really helped to kick start the market.  A lot of homes sold then."  She said sales started to improve for her company about mid-February and they stayed busy after the credits expired.  "Our numbers are really encouraging right now.  While that doesn't mean there's been a big turnaround, sales are much better than they were.  We see a light at the end of the tunnel.  Lake home sales are showing signs of life, more properties are being listed and more home showings are going on.  The value of homes seems to have firmed too..  The NAR doesn't see home prices dropping.  I think we may have hit the bottom, and I think that is the general consensus.  Sales of lots for new home construction and commercial property are probably slowest now.  People aren't buying new homes right now.  I know they want to, but I think banks are trying to get rid of existing inventory."

Both brokers said a number of factors are helping sales.  The Associated Press reported thursday that 30-year mortgage rates hit a low of 4.54 percent, the lowest level on record for the fifth time in six weeks, the lowest since Freddie Mac began tracking rates in 1971.

I, personally, have been saying this for a while now, but one of the brokers interviewed for the piece said it perfectly:  "Prices are low, there's a lot of inventory out there, and interest rates are low also.  It's a perfect storm as far as time to buy real estate.  There are some good properties to be bought, and the rates are fantastic.  Now is the time to buy."

I agree!  So, let's get out there and buy!

New Firm, New Attitude

So, I finally did it . . . after spending the years working to making someone else money  - I finally am living the American dream.  I went out on my own, joined with an amazing partner, and started a new real estate firm! After a month of preparation, Property Source Pros officially rolled out on May 27th, 2010.

I am so excited about the possibilities for Property Source Pros.  All of us are hard working, full time Realtors.  Once we truly get gelling as a team, we will quickly become a top tier real estate firm.  Getting started has really been hard work, though.  And, I still have so much left to do!

We rolled out with several listings, which is a great start, but it also meant a whole LOT of signs going up in one day.  We were all worn out, hot, and sticky by the end of the day, and I freely admit I had momentarily forgotten one of the most important things which has helped me be successful in my real estate career . . . that this is a very fun job!  I mean, think about it, as a Realtor, I get to meet and help new people every day.  Plus one never knows what my day will hold.  I get to help investors analyze and make successful investments, retailers find new locations to start their businesses, worn out metro residents find lake get-a-ways close enough to home so they get a chance to sit back and relax every weekend, and first time home buyers find new homes.  What a fabulous career!

Anyway, I was tired and worn out, and just wanted to get done with signs.  I needed to put a directional sign for one of my lake listings at an intersection occupied by a mini-market, so I went in to ask if I could put the sign on their property.  I was just rushing in to ask, but ended up being refreshed by one of the most entertaining, out-of-the-blue conversation I've had in ages.  While I won't try to repeat all the details, let's suffice it to say that my popping in to ask if I could put a sign up turned into a bizarre and hilarious 10 minutes with 2 strangers debating a wide range of topics from the amount of salt in 1 cubic foot of ocean water to the number of holes in a Ritz cracker (7, by the way - that's the original round version)!

It reminded me that, no matter how busy I am, it is important to take time and simply talk with people.  Perhaps it is even more important when I think I am too busy to do so.  Now, don't get me wrong, I actually enjoy working too much to sit around talking all the time.  But, over the past year and a half, I've been so busy, I haven't taken any time to sit and talk . . . until I ran into the trivia King at the L&J who reminded me of this important aspect of life in general.

So, now with that in mind, I'm going back to work!  But, take this lesson from me: don't forget to stop every so often and take the time to talk with someone you've never met before.  Oh, and don't forget to keep an eye out for Property Source Pros.  We're a full-service real estate firm founded by professional, full-time Realtors with experience in commercial and residential sales, leasing, and management. Our sphere of influence ranges from Atlanta, Georgia to Anderson, South Carolina.  Regardless of your real estate needs, we're the group!

Flip This House - Hartwell

I actually wrote this story last October and never posted it, but these same clients just put their third flip house under contract yesterday, so I wanted to go ahead and re-lease this story to lead into the next 2 which I will be posting about them over the next few days:

My clients, Halmour Properties - a mother / brother / son combo, recently had a successful house flip.  I wanted to share their story for all of those who think there is no longer money to be made in today's market!

Purchase:  I searched for houses for them for approximately 60 days prior to finding the perfect house for their flip.  It is very important in today's market to look for a house which can be renovated and sold for a profit at the average sales price for your area.  In Hartwell, right now, the houses selling are not the higher priced Lake Homes, but those homes in the $80-90,000 range.   Halmour was looking for a house that could be purchased and renovated for less than $60,000.

We looked at the house on September 6th.  It was a 3 bedroom / 1 bath brick home on .65 acres of land directly across the street from the Hart County Middle School.  It was in very good structural condition, but there was no HVAC, the hot water heater and appliances were missing, it was dirty, the yard was overgrown, the carpets were horrid, and the paint colors were extreme (hot pink, dark hot pink, dark brown, deep bright yellow).  It was listed at $55,500, and had been on the market for six months.  They made an offer to the bank of $38,500 - which was accepted.  The property closed on October 7th.

Renovations:  To their amazement and good fortune, the investors found many special touches which had been hidden.  For instance, they found hard wood floors in great shape beneath all of the nasty carpets, and well-done rock work around all of the landscaped areas beneath the long-ingored plant life gone wild.  They were able to use these items to their advantage.  They had planned significant changes to the home such as: adding a second bathroom,removing the wall between the kitchen and living room area to open it up, adding on to the back deck, and installing a kitchen bar area. But it turned out the most extreme changes they had to make involved removal of the in-the-wall heaters and repair of the remaining holes after installation of a central heat and air system.  Their repairs totalled $7,100.

Sell:  The reason they didn't end up making significant changes was: I put it under contract on October 10th to a family who requested they make only the most necessary repairs and sell it to them. The family has a daughter who had just started middle school.  They took one look at the property, and put it under contract.  They wanted to keep their total payments in the $525 per month range.  It closed on October 31st for $72,750.  Their monthly payments, including escrows for taxes and insurance, total $533 per month.

Halmour agreed to the contract because they knew they could have made the changes and sold the home in the $90,000 range, but it would have cost them that much more to make the changes.  As it worked out, they were able to spend the least amount of time and still create a good profit while feeling proud of the home they sold.

Bottom Line:

Purchase Price = $38,500; Repairs / Commissions = $7,100.  Total Investment = $45,600.

Sales Price = $72,750.  Total Profit = $27,150.  Total time to flip = 24 days. 

What they Learned:  They said what they learned mostly was the order in which to make repairs!  Also, to keep a running board with the day's tasks listed to be checked off.  Apparently the two investors re-did a lot of work because they were not communicating well.  For instance, one prepped the bathtub for refinishing, then the other came the next day and scrubbed it - requiring another prep of the tub before refinishing.  One prepared the trailer for a dumpster run, the other came in and filled it with brush from the yard clean-up.   They both cleaned the windows; they both cleaned the ceiling fans; they both mopped the same floor and forgot about another, etc. 

As their agent, I was very proud their flip worked as well as I told them it should.  Another option for investments in this price range is to rent it for a couple of years before selling it during the next strong seller's market.  I also do property management and leasing, so I had prepared them for this option.  In this instance, they did not have to wait.  We are currently looking at two other homes which they hope to rent and / or sell in this same manner. 

Are you interested in making a 60% profit in a month's time?  Call Julie Haley today . . . I will set you up and we will work to make your goals!