Real Estate Information

Even in Tough Times, 77% of Americans View Homeownership as a Part of Their Own Personal American Dream

A national survey recently released by real estate leader Trulia shows that many Americans feel that President Barack Obama has not lived up to the hope he created during his campaign and his first 30 days in office.  In Trulia's latest American Dream survey conducted online on its behalf by Harris International from January 19-21, 2010 President Obama scored considerably lower marks on the topic of restoring the American Dream of Homeownership compared to a survey conducted February 20-24, 2009 after his first 30 days in office.

The current survey found that 37% of Americans gave President Obama a grade of "D" or "F" on the decisions he's made towards restoring the American Dream of Homeownership compared to only 22% in the February 2009 survey.

Additionally, 54% gave him a grade of "A" or"B" in February 2009 compared to only 37% in January 2010.  Despite these lower grades, and the troubles that have continued to plague the U.S. housing market, the survey found that the "American Dream " of homeownership continues to be alive and well with more than three out of four Americans considering owning a home as part of their personal American Dream.

"I am thrilled to see that the American Dream of Homeownership is alive.  If the dream had died we would be in a lot of trouble," said Pete Flynt, CEO and co-founder of Trulia.  "Everyone realizes there is no easy fix and we have a long road ahead.  Until there is a reversal in unemployment and the growing number of home foreclosures, the U.S. real estate market will continue to see significant volatility.  I agree with the results of our survey that job creation and job security have to be the President's top priority."

President Obama's Report Card- Democrats currently rate President Obama's  performance higher that Republicans, but both downgraded the President's performance in the January 2010 survey compared to the survey Trulia conducted in February 2009.  The current survey shows that "A" ratings from Democrats decreased by 19 percentage points and by 13 percentage points from Republicans.

Priorities Going Forward- Democrats and Republicans agree on the areas President Obama needs to focus on in 2010 to stabilize the U.S. real estate market.  Creating jobs and job security continues to be at the top of the list with 62% of adults referencing it as a key priority for the President.  With foreclosures reaching record levels in 2009 and expected to grow even more this year, it's not surprising that 45% of adults included this as an important area of focus.  Rounding out the top three priorities for President Obama is bringing/keeping low interest rates at 39%.  Only 27% of Americans surveyed believe that extending the home buying tax credit through the end of 2010 should be a key initiative to help stabilize the housing market.

This sentiment was also echoed on Trulia Voices Community, with many users feeling that President Obama tried to do too much, and that the key to fixing the economy and housing market will be to focus on creating new jobs and job security.

Positive and Negative Views- The majority of Americans surveyed were unaffected by the events that have transpired during the past year in the housing market, with 60% saying that their view toward homeownership is unchanged.  Slightly more of those surveyed have a more pessimistic than positive outlook with 21% saying they have at least a somewhat more negative view toward owning a home, compared to 20% having at least a somewhat more positive view.    For more information, visit www.trulia.com  and www.rismedia.com

If you are ready to buy a home, The Judy Ballard Team is ready to assist you every step of the way.  Our Buyer Agents know this area and can show you anything that is on the market- no matter which Broker has the Listing.  Judy Ballard is Marietta's Luxury Home Marketing Specialist.  Call us today for a  private showing on any home we currently have available For Sale.

THE MOST IMPORTANT JOB IS THAT OF LEARNING HOW TO NEGOTIATE WITH OTHERS WITHOUT FRICTION.

Experts in negotiation handle the process so smoothly that discussions hardly seem like negotiations at all. While the word negotiation itself conjures up visions of cigar-chomping adversaries pounding the table to emphasize their demands, the best results are achieved when all the parties involved are able to put themselves in the others’ shoes and arrive at an agreement that is beneficial to everyone involved. Whether you are negotiating a higher salary, a new job, a new home or the acquisition of a company, your chances of success are far greater when you approach the situation positively and with a clear objective in mind. It also helps to understand the motives of others involved and to have in-depth knowledge of the subject under discussion. Finally, approach every topic with an open mind-don’t simply try to bully others into accepting your proposal or point of view.

Judy Ballard and Associates Real Estate has a Team of Buyer Agents specializing in negotiations and we are ready to put our negotiation skills to work for you.  As soon as we find that perfect home, we will be representing you and your interests in achieving the best price and terms possible and to advise you of the best mortgage rates available.  Call us and we can get started today looking for that dream home!

The Real Estate roller-coaster ride continued last year as the median price of U.S. single-family home plunged 11.9% to $173,200.

The  housing situation had been looking up earlier in the year, with prices gaining ground in the first nine months.  But the increases weren’t enough to push the median home pries above 2008’s bar of $196,600. according to the National Association of Realtors.

And then, prices fell in the fourth quarter, dropping 2.9% compared to the previous 3 months and 4.1% compared to the last quarter of 2008.

Still the quarter-over-quarter drop was encouraging to NAR, which tracks home prices and sales.

“This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” said Lawrence Yun, NAR’s chief economist.  “Because buyers are taking on long term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable.”

Another sign of improvement is the increase in the number of homes sold.  More than 6 million homes changed hands between October and December- a  27.2% increase from the same time period in 2008.

“The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates.” said Yun. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.  (CNNMoney.com- New York)

Advice for Home Sellers!

Competition for qualified buyers is greater than it has been in years past, but there are still buyers out there who are willing, able, and interested in purchasing your home! If you are realistic about what it takes to sell in a buyers market — and you are willing to meet the buyer in today’s market — then success can be yours! Here are a few tips to make your home stand out from the crowd:

Pricing – Price your home realistically.  Remember, buyers are comparing your home against all others and are looking to stretch their dollar. By pricing your home to sell, you end up saving time and money in the long run by keeping your home from being shop-worn and overlooked.

Home Inspection – How does your home stack-up against new construction?  Pre-existing homes often require more effort to maintaining inventories, incentives can be the deciding factor between your home and the competition.  Consider offering a free home warranty, a carpet allowance, or assistance with closing costs.  Incentives don’t have to cost a lot to be attractive.

By offering value, you attract buyers and enhance your property’s desirability.  If you are thinking of selling your home, please contact us for a current market analysis and marketing consultation.  There is no obligation for these services.

This is definitely the time to take advantage of the real estate market.  Interest rates are at their lowest in over 40 years and I do not think we will see values like this again in our lifetime.  There is a great selection of inventory available in just about every price range which gives buyers outstanding value.  If you are anticipating the bottom, you may miss it and have to catch the wave on the way back up, which is why you should consider investing in the real estate market now. 

The Federal Government is making available an $8,000 tax credit for anyone who has not owned a home in the last three years.  Also, the State of Georgia is offering another $1800.  So combined, this is $9800 to help purchase your home in Georgia. 

In today’s market more than ever, correct pricing is what it takes to sell a house.  Every buyer is looking for “the deal” and with so many foreclosures and short sales available, it is imperative to be priced competitively.  If you are a seller, on the positive side, you must remember that whatever loss is incurred on the selling end, you can more than profit on the buying side as you, too, can find “great deals” and ultimately come out ahead. 

For investment, the Atlanta Area Real Estate Market has so much going for it.  The Atlanta economy remains strong with population growth continuing, along with great economic growth, the fastest growing metropolitan area in the nation since 2000, future job growth projected, affordable housing, low energy bills, temperate weather, lovely terrain and convenient locale.  U-Haul released the results this year, of the annual U-Haul National Migration Trend Report.  According to moving data reflective of nationwide statistics for calendar year 2008, Atlanta once again takes the No. 1 spot for the 2nd year in a row. 

The good news is that the nation’s median home price is projected to have only another 5%-10% to fall (IHS Global Insight - the most consistently accurate forecasting company in the world).  Lower prices have lured buyers recently, so sales are stabilizing in some markets.  Economists currently forecast that in the national average, we will see the bottom either from the 1st quarter of next year (Moody’s Economy.com) to the first half of 2011 (IHS Global Insight).  

When buying a home, the first thing you should do is make sure you are financially ready to buy a home.  You want your home to be a blessing - not a curse - so it’s crucial to look at your income, savings, expenses and debts, budgeting all accordingly and examine to see if home ownership is affordable to you at the present time.  Prior to the start of your search for a new home, you may want to speak with a lender to get pre-qualified for a loan.  This is an unofficial estimate of the home you can afford, which helps you focus on a specific price range, saving you time so you won’t be looking at properties well over the price that you can afford to purchase.

“My hope is that everyone who is capable, may obtain the dream of Home Ownership.”  Judy Ballard

www.judyballard.com

Why Buy a Home Now

If you're renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, "The average homeowner is worth 35 times more than the average renter."

He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford.

The longer you rent, the longer it may take you to eventually get into homeownership. If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.

According to a MarketWatch news article, buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. "People can get a lot of what they need and almost all of what they want today," said Jay Papasan, one of the authors of "Your First Home".

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy. But in order to make your purchase profitable, here are some things you should consider.

How long will you be in the home? Some experts advise that if you are planning to move within a year, buying may not be the best option because of the expenses associated with moving. However, if you're searching for a place to live for, at least, several years, buying now could be a good choice for you.

How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes -- simpler living.

Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income, and a substantial down payment will make you a better candidate for the better mortgage rates.

Freedom to choose. Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy.

Quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.

Tax credit benefit. The American Recovery and Reinvestment Act of 2009 provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

www.judyballardhomes.com

Shopping for your dream home has never been easier!

One website offers everything needed to search for your dream home on line.  Cobb Home Searcher has 12,000 Cobb County Homes to view featuring large photos, virtual tours and maps – everything that a multi-listing service has to offer and more.  All the critical elements that a buyer is looking for – large pictures, complete descriptions, street level and satellite maps are available on one site.  When viewing listings, the buyer will never be redirected to another site.  Navigating with minimal clicks are one of the wonderful elements to this site.  Once registered, the buyer can view all listings that meet their criteria.  Area, price range, number of bedrooms and baths are all customized by the buyer.  Multiple searches can be done at one sitting and favorites can be tagged to view again.  The buyer’s password will be emailed to them so return visits can be made easily and with no hassle.  The potential buyer can also choose to have new listings that fit their desired criteria emailed to them as soon as they become available. 

Here is an expample of the home page of Cobb Home Searcher: 

                                                             www.judyballard.com

What to LOOK for in an Agent when Selling Your Home

It used to be that choosing a listing agent was a pretty easy task.  Choosing a real estate agent has never been as important as Cobb County, Georgia inventory levels have swelled to historic highs and home pricing has become a lot more competitive.  This decision should NOT be based on:

• The fact they charge the lowest commission as discounted service most likely leads to disappointing service.  Ask what their marketing plan entails as discounted service normally leads to less marketing!
• A friend of a friend knows the person and has “heard” they sell a lot of real estate.  Ask for facts and figures about the person such as how many years and how much real estate they have sold in their career and last year.

Here are a couple of things that you should be looking for and expect from them when choosing someone to sell what is most likely your largest investment in Georgia:

• An internet Presence That Google & Yahoo love:  Did you know that 84% of home buyers will begin their search on the internet?  Before you choose an agent, take the time and see THEIR website presence, not the corporate website presence.  A high internet presence results from aggressive advertising and networking on the internet that often results in thousands more for a home or owner.  Search some of the phrases that a home buyer would be most likely to use such as:  Marietta, GA real estate, Cobb County real estate, luxury homes in Cobb County.
• Local Market Knowledge & information:  A knowledgeable real estate agent has never been so important as competitively pricing a home is the most important part of your home’s marketing plan.  The longer a home sits on the market the more “stale” it gets and statistics show that this will lead to a lower sales price.
• Advertising that buyers see:  It is amazing to see how many agents that think it is still acceptable to put only one photo of a home on the MLS.  A home must have the maximum amount of photos possible that help highlight all the positives of a home.  More exposure comes from more pictures.  Simply put, the more pictures, the more someone is going to be interested.
• Honesty:  Selling your home in Georgia is a partnership between you and your agent.  Your agent should be wiling to tell you the good as well as the bad in regards to buyer feedback and what improvements need to be done before selling your home.  If a person is only telling you the good, then you won’t have the opportunity to improve and thereby might continue to lose potential buyers to the same problem. 

If you are planning on selling your home, then I implore you to interview at least three agents before making a choice.  Like any relationship, it is more then just the business aspect, but the personal aspect as well.  This is most likely your largest investment; you should feel comfortable personally and professionally with the person representing you.

If you're like many first-time homebuyers, chances are you've been spending your weekends driving around visiting open houses and new model homes. This is a great way to get a feel for what you want. The problem is that what you want isn't always what you should get.

Before you start touring homes for sale, it's important to start off with a budget so you know how much you can afford to spend. Knowing what mortgage payment you can handle will also help you narrow the field so you don't waste precious time touring homes that are out of your reach.

Where to begin

The key factor in figuring how much home you can afford is your debt-to-income ratio. This is the figure lenders use to determine how much mortgage debt you can handle, and thus the maximum loan amount you will be offered. The ratio is based on how much personal debt you are carrying in relation to how much you earn, and it's expressed as a percentage.

The ideal ratio

Mortgage lenders generally use a ratio of 36 percent as the guideline for how high your debt-to-income ratio should be. A ratio above 36 percent is seen as risky, and the lender will likely either deny the loan or charge a higher interest rate. Another good guideline is that no more than 28 percent of your gross monthly income goes to housing expenses.

Doing the math

First, figure out how much total debt you (and your spouse, if applicable) can carry with a 36 percent ratio. To do this, multiply your monthly gross income (your total income before taxes and other expenses such as health care) by .36. For example, if your gross income is $6,500:

Next, add up all your family's fixed monthly debt expenses, such as car payments, your minimum credit card payments, student loans and any other regular debt payments. (Include monthly child support, but not bills such as groceries or utilities.)

*Your minimum credit card payment is not your total balance every month. It is your required minimum payment -- usually between two and three percent of the outstanding balance.

To continue with the above example, let's assume your total monthly debt payments come to $750. You would then subtract $750 from your total allowable monthly debt payments to calculate your maximum monthly mortgage payment:

In this example, the most you could afford for a home would be $1,590 per month. And keep in mind that this number includes private mortgage insurance, homeowner's insurance and property taxes. To determine the price of home you can afford based on this amount, use a home affordability calculator.

Exceptions to the 36 percent rule

In regions with higher home prices, it may be hard to stay within the 36 percent guideline. There are lenders that allow a debt-to-income ratio as high as 45 percent. In addition, some mortgage programs, such as Federal Housing Authority mortgages and Veterans Administration mortgages, allow a ratio higher than 36 percent. But keep in mind that a higher ratio may increase your interest rate, so you may be better off in the long run with a less expensive home. It's also important to try to pay down as much debt as possible before you begin looking for a mortgage, as that can help lower your debt-to-income ratio.