On January 19th, 2017 at the annual Lamar County Chamber of Commerce awards night,
Dora Cox was named “Career Woman of the Year”.
Now is a great time to buy a house because prices are so low, but more importantly, interest rates are extremely low. I think you would have to go back to the 1940′s to find interest rates this low. But interest rates are beginning to creep up. They are bouncing between 3.75 and 4.25 right now and trending higher.
Interest rate is amazingly important in the final price of your home. For instance, in 2000 interest rates were running closer to 10%. Anything under ten was a good rate. At the height of the housing market, anything in the sixes was a good rate. Over the last year we have been in the three’s.
For example, the total cost of a house that sells for $100,000 will vary by $150,000.00 in the actual amount a person pays for the house.
9.75% will have a monthly payment of $859.12 for a total payment over 30 years of $309,295.89.
6.50% will have a monthly payment of $632.07 for a total payment over 30 years of $227,544.99.
3.25% will have a monthly payment of $435.00 for a total payment over 30 years of $156,674.27.
If it is a time in your life that home ownership makes sense for you, now is a great time to buy a home!!
Who knew that planting a tree in your yard or digging holes for the supports on that new deck you are adding to your home could be a dangerous thing to do?
Unseen and rarely thought about: buried utility lines and pipes crisscross our streets and our yards just inches below us and puncturing or severing any of them can be expensive, or worse, deadly.
You would think the chances of hitting one of these lines would be slim but in fact one is hit every three minutes in the U.S., according to the Common Ground Alliance, who tracks these incidents.
Please be aware that you could incur fines from local regulators and be responsible for repair costs associated with fixing the damaged utility line as well as being held liable for any neighboring homes or businesses impacted by a utility outage as a result of your digging.
811, a national call center number, was created by the U.S. Department of Transportation to help professional excavators and contractors be aware of underground infrastructure.
You don’t have to be a professional to call. Anyone can call 811 and your local utilities will send out a professional to find, identify and mark off all buried utility lines – free of charge.
811 Know what’s below. Call before you dig.
When planning your move, packing can be the most stressful part. That’s why most everyone saves that task for last.
Using any or all of these 10 packing ideas will take some of the pressure off during packing and, just as important, when unpacking too.
1. Freebies – Why buy boxes when you can get them for free? Go to Freecycle.org or the “free stuff” section on Craigslist. Both list items by location. It’s best to find boxes of varying sizes. Avoid supermarket cartons that may contain messy or smelly food residue.
2. Pack Backwards – This means starting with the last room you will unpack which is typically the kitchen and pack the first room you’ll want to unpack last – typically the bedroom. Loading the boxes in this order for the move helps on the delivery end too.
3. Color Coding – No one needs to know what’s in which box but you, right? Use assorted colors of duct tape or sticky dots and use the same colors on the rooms in the place you move to. Mark all sides of the box so no matter how they are stacked you can always identify where it goes.
4. Bag & Tag – Leave your hanging clothes on their hangers and group a few hanging clothes together with a twist tie, slip a black garbage bag over them, and make a hole in the top of the bag for hanger hooks to stick out. Mark which room they go to with your color code tape (see #3). To “unpack,” simply remove the bag and tie.
5. Cover It – Instead of buying the mattress cover sold by your mover, leave the fitted sheet you use regularly on your mattress, then cover both sides of the mattress with two older fitted sheets you no longer use.
6. Wrap It – Don’t bother emptying out the drawers of smaller furniture like end tables or corner desks. Wrap heavy-duty plastic wrap around it from top-to-bottom and side-to-side. This seals the drawers in place, and saves you hours of unpacking.
7. Tape It – If certain furniture pieces require disassembly, place all bolts, screws and small pieces in a Ziploc bag and tape the bag with clear packing tape to the bottom of the piece.
8. Pad It – When packing the moving truck, use socks or rolled t-shirts between items that could bump up or rub against each other in transit. This is especially handy inside boxes for wrapping around breakables like glassware.
9. Even It Out – Even out the weight when loading furniture and appliances in a moving truck to help prevent damage. Place the refrigerator in the front right section of the truck and the washer and dryer opposite, front left.
10. Secure It –When loading your plastic-wrapped furniture, place the side with drawers against the wall of the truck to prevent them from opening. Use tie-downs or bungies on the side walls for added security. Remember, things shift front to back as well as side to side.
Are you thinking of buying a house, but do not do know how, or who to ask?
Buying a house these days is relatively simple. Most of the people buying today are young, first time home buyers. Let me give you a few easy steps:
1. Find out how you are going to pay for the house. Some people pay cash, but 90% get a loan. There are 3 most popular types of loans.
2. Next, choose a lender. THE LENDER IS THE MOST IMPORTANT PERSON IN THE PURCHASE OF YOUR NEW HOME. GO WITH AN EXPERIENCED LOCAL LENDER.
3. Choose the right real estate agent. Real Estate signs are a little misleading. All real estate signs list the name of the company and telephone number of the agent that has the property for sale. YOU ARE NOT REQUIRED TO CALL THE LISTING AGENT TO SEE THE PROPERTY. ANY REAL ESTATE AGENT CAN SHOW YOU ANY REAL ESTATE PROPERTY. You can choose the agent you want to work with. Generally, the best agents do this full time. Talk with several agents and choose the agent with whom you fill most comfortable. A good real estate agent will make the process pleasant. From choosing a lender, to choosing a house, to getting the home inspected, right to the closing table, a good agent will make the process easy.
4. Call Dora Cox Realty. We would love to help you find your dream home! 770-358-7000
Everyday we hear on the nightly news that homes prices are up and that sales are up 25% from a year ago. I wish this were true here in Lamar County. I have been tracking sales since January 2000 (when I first started in real estate). The above chart shows the history of single family home sales in Lamar County.
This data comes from homes sold by real estate agents listed with Geogia MLS. This is not data from the tax records, because when I started that data from county sales was not readily available.
In Lamar County, we peaked in 2006. Specifically our highest monthly sales were May 2006. We benefitted from 3 things. Interest rates had dropped. From an earlier blog you can see that 9.75 on a $100,000 loan, the payment is with interest and principle for 30 years is $859.12, but at 6.5% the same loan is $632.07.
When gas prices went up and home prices dropped, our sales dropped dramatically. Even though interest rates are unbelieveably low, our sales have not gone up. People are upside down on their mortgage and cannot sell to buy a bigger home. Buyers are not willing to drive as far due to the price of gas.
In Lamar County this year our home sales are on track to be our lowest number of sales since 2010
In order for your lender to determine your options, all borrowers listed on the loan must provide certain financial documents to their lender.
All borrowers must provide:
In addition, all borrowers must also provide the documents under each category that applies:
If you are a salaried or hourly employee
If you are self-employed:
If yu currently live in your home:
If you receive income from a rental property
If you belong to a Homeowners Association:
If you receive alimony, child support or separation maintenance as qualifiying income:
You are not required to disclose child support, alimony or separation maintenance income, unless you choose to have it considered.
If you have other income from any other source(s):
This could include bonuses, tips or investsment income.
When starting the short sale process, select a big box or folder and keep all of your documentation in this one place throughout the short sale. As time passes you will be required to update documentation.
This process is not easy, and is often frustrating, put do not give up. Short sales happen everyday. The short sale process requires patience and diligence. Good luck.
Information courtesy of Bank of America.
If you are in trouble with your mortgage, there are several sites on the internet that are helpful.
To request help with your mortgage from your lender, you may qualify if you have some form of hardship. You will need to fill out a form called Fannie Mae/Freddie Mac form 710. You may find this form at: http://www.freddiemac.com/sell/single/service/docs/form710.pdf
Your lender looks at the request and categorizes you into one of 2 categories: Has Hardship or Has NO Hardship.
HARDSHIP IS NOT:
If you establish you have a hardship your lender will help you decide which option is best for you. You may:
For people living in Georgia who have lost their employment, Georgia has a program to help. The details can be found at www.homesafegeorgia.com .
Due to previous abuses by the lenders in the past, such as robo-signing, improper documentation and lost paperwork, in March 2012, the federal govenment released details of the $25 billion dollar National Mortgage Settlement stemming from improper foreclosures and other deceptive practices in the origination and servicing of mortgages.
The agreement with Bank of America Corp, JP Morgan Chase & Co.,Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc. (formerly GMAC) is designed to provide eligible homeowners with relief as well as prevent future abuses.
More information on this can be found at the governments Making Home Affordable at http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx.
Credit scores are calculated from different credit data in your credit report. The most common credit-scoring system was developed by the Fair Isaac Corp.(FICO) and is used by major credit bureaus to evaluate your credit history. The system considers factors like how many credit cards you have and how quickly you pay your bills, and assigns you a rating between 300 and 850.
Two of the most important factors affecting your score are your payment history and whether you’ve had any collections. Other factors include amounts owed, types of credit used and length of credit history.
According to FICO whose credit score represents an industry standard, raising one’s score from 550 to 720 produces a savings of $131,000 over the life of a 30-year mortgage. Nest are some helpful hints in raising your credit score.
Once you have the house you love “under contract,” you still have a lot to do. Many have a time deadline. Make sure you understand all of the deadlines in the contract.
Our goal is to have the easiest and smoothest closing possible and to hand you the key to your new home.
The third step is the most bewildering for first time home buyers. After you have looked at the market and have decided this is the house you want, how do you create a contract to buy your house?
Working with a Realtor makes this easy. Your realtor has access to a vast array of contracts that are designed to address most needs of both the buyer and the seller in a contract.
In Georgia, you can create a contract on a scrap of paper with just a few words. But if a difference of opinion arises or issues with the house, a scrap of paper may not be enough to protect you and keep you out of court.
Let us assume you are going to use a realtor, hopefully a Dora Cox Realty realtor.
Housing prices are always negotiable. The Seller may not take less, but you can always try. Besides the price, a contract spells out who pays Buyer’s closing costs and how much; when will you close on the house; which attorney will handle the closing; and many other issues.
Your realtor will ask you many questions designed to make the contract as close to your needs as possible.
Then the contract is submitted to the Seller. The Seller then decides what to agree about the contract and what to counter on the contract. If the Seller signs the contract without making any changes, the contract negotiations are complete and the contract is binding as soon as the Buyer gets a copy.
If the Seller makes changes to the contract, it is considered a “counteroffer.” The Buyer can then make sign the counteroffer without making changes and the contract negotiations are complete and the contract is binding when the Seller gets a copy.
But if the Buyer makes any changes to the counteroffer, the you are still in negotiations. The offer can go back and forth as many times as needed till both parties agree to all conditions of the contract.
Working with a realtor makes this process less stressful for both parties. Most issues are covered in our standard contracts. The contracts are designed to address the needs of both the buyer and the seller.
If you have never bought a house before, the process may seem overwhelming. But once you have talked with a lender to find out if you can buy a house and how much you can afford to pay, the next step is finding the house.
DEFINE YOUR CRITERIA
There are thousands of houses on the market. You need to make a list of FEATURES that are important to you. Then prioritize your list.
Is location important? Do you want to live in Lamar County? Or perhaps one of the surrounding counties. Some people are literally looking “south of Atlanta.” Other people want to live within 10 miles of their job. The question is What do you want?
How many bedrooms and bathrooms do you want. Do you want 4 bedrooms, but 3 is OK? Or do you have to have 4 bedrooms because your father lives with you.
Do you need one level because someone has knee trouble? Or do you want a one level, but two is OK?
What size lot? Do you want to live in the country on 2 or more acres? Or do you want to live in the city on a quarter acre lot?
What age or “year built” house do you like? Do you like old houses? Or do you want a brand new house?
If you take a moment to define your criteria–what you want and what you have to have, you will have more fun looking for a home. Once you have figured out your criteria you can start your search.
LOOKING ON THE INTERNET
There are many good sites on the internet to look for homes. There are also many not so good sites you can use to look for your new home. In my opinion the criteria for a “good” or “not so good” site is how often they update the listings on the site. Sometimes I get calls from buyers on houses that have been sold six months ago. The site they were looking at never updates!! The site must pull up new listings, but never removes old listings. You do not want to waste your time on a site with old listings.
At www.DoraCoxRealty.com, We update out website every business day. Also the button “Georgia MLS click here to search” is actually a link to Georgia Multiple Listing Service that agents use to communicate to each other. That site is updated daily.
Also www.Realtor.com is a good site that is updated daily.
At these sites you do not waste energy finding your dream home only to learn it sold six months ago!!
CALL AN AGENT, HOPEFULLY AN AGENT AT . . . DORA COX REALTY.
We can open the door for you–both figuratively and literally. We can show you the houses. We can unlock the door. We can also perform more focused searches. If you really want a screened in porch, you cannot look for that but an agent can. Include an agent early in your search for a house.
If you are looking for a “fixer upper,” we can tell you which ones qualify for a loan and which ones will be far more difficult to buy. Although, if your heart is set on a fixer upper, we can also direct you to a lender and a loan program that might make that possible.
Once you have looked at homes with an agent, you’ve looked online to educate yourself on the market and you are ready to jump into home ownership, then . .
LOOK ON THE INTERNET EVERYDAY
This is very much a foreclosure market. The government owns most of the foreclosures. The government’s goal is not to get the highest price. The goal is to move the houses quickly. With so many houses and so many different people involved sometimes a house gets listed significantly below the market. Even this market.
So look everyday. If a real deal hits the market you will be familiar with the market and ready to act. Do not be slow!! Good deals go quickly. We frequently have multiple offers on a really good deal! One day can make the difference between getting a deal and “coming close”. Remember close only counts in horseshoes.
NOW IS A GREAT TIME TO BUY. PRICES ARE LOW AND INTEREST RATES ARE INCREDIBLY LOW.