Georgia Mountain Real Estate

Fixed Mortgage Rates Hit Record Lows…Again

Rick Andrews — Sat, 19 May 2012 11:13:04 +0000

Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates again hitting new record lows. The 30-year fixed-rate mortgage at 3.79 percent continues to remain well below 4 percent and 15-year fixed-rate mortgages are also slightly down at 3.04 percent.

Additional details from the PMMS:
-30-year fixed-rate mortgage (FRM) averaged 3.79 percent with an average 0.7 point for the week ending May 17, 2012, down from last week when it averaged 3.83 percent. Last year at this time, the 30-year FRM averaged 4.61 percent.
-15-year FRM this week averaged 3.04 percent with an average 0.7 point, down from last week when it averaged 3.05 percent. A year ago at this time, the 15-year FRM averaged 3.80 percent.
-5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.6 point, up from last week when it averaged 2.81 percent. A year ago, the 5-year ARM averaged 3.48 percent.
-1-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.5 point, up from last week when it averaged 2.73 percent. At this time last year, the 1-year ARM averaged 3.15 percent.

Source: Freddie Mac

For FREE access to local market information click MARKET INSIDER. I assist buyers in Hiawassee GA, Young Harris GA. Blairsville GA, Hayesville NC and Brasstown NC. If you have any questions regarding mountain real estate you can reach me at 828-557-9139 or email me at Rick@scenic21.com.

Forbes Best Cities to Raise a Family

Rick Andrews — Fri, 18 May 2012 12:21:00 +0000

Forbes based its rankings on median income, overall cost of living, commuting time, crime, school quality, and housing affordability.

1. Grand Rapids, MI

2. Boise, ID

3. Provo, UT

4. Youngstown, OH

For the complete list visit www.forbes.com

Steps to Make Your Offer More Desirable Than Other Bids

Rick Andrews — Thu, 17 May 2012 10:11:23 +0000

The Hiawassee GA market is still a buyers’ market. Even in a buyer’s market, there are often multiple offers on a property. This can be a stressful and frustrating time for perspective buyers, and they should rely on their professional real estate agent to guide them through the process. The sellers evaluate the offers and decide which to accept. Here are some tips to put your offer above the competition.

Money talks – A cash offer is a serious contender with any property.
Pre-approved guarantee – Let the sellers know you are qualified by submitting your loan pre-approval letter from the lender. A pre-approval letter from the lender confirms your employment, source of your down payment, and other aspects of your financial circumstances. Although obtaining the approval is more involved than a pre-qualification letter, it carries more weight. A strictly cash offer is a serious contender with any property.
Don’t underestimate the power of a down payment – Increase your down payment, it tells the seller you are a serious buyer. Obviously, the highest offer appeals the most to sellers. If the price is uncharacteristically low to encourage multiple offers, have your agent evaluate the comps in the area to decide on a reasonable offer.
Play nice – Find out what the sellers want and be flexible. Cater to their desired closing date or waive minimal repairs. Offer to pay closing costs and don’t ask for personal items in the home.
No strings – Remove contigencies. The buyer with an offer that is not contingent upon sale of another property will more attractive to sellers.

Gardening Mistakes to Avoid

Rick Andrews — Wed, 16 May 2012 10:36:43 +0000

Whether you are a garden novice or a seasoned green thumb expert, avoid common gardening mistakes with these tips

Pay attention to your property. Observe what areas receive the most sunlight and if there are areas that are often shaded throughout the day. Is there an area that collects an excess of water?
Read care instructions on trees, shrubs nd plants. Learn and adhere to proper spacing instructions. Remember, spacing may seem excessive at first, but as plants grow and flourish they will increase in size and require adequate space.
Take pictures of your space and bring them to your local nursery with your notes and observations of sun exposure. The experts may have some advice and ideas for what will thrive and complement your yard.
Install an irrigation system in your yard or be vigilant about watering plant roots according to necessary specifications. This is especially important in the early stages to ensure the plants take root. Landscaping and upkeep can be time consuming and expensive. Choose plant life that will not break your budget, this may entail landscaping your space in stages.

Good News for Those Seeking Employment-and ultimately, for Commercial Investors

Rick Andrews — Tue, 15 May 2012 10:18:34 +0000

As commercial real estate investors know, any improvement in the employment market bodes well for commercial real estate. After all, as companies increase their employee headcount, they’re likely to need more space. That in turn creates a stronger demand for commercial properties, both for leased and purchased space.

So commercial investors will be happy to hear that according to CareerBuilder, hiring plans in the U.S. are returning to pre-recession levels.

The firm released a survey on April 5 showing that one-third of employers added full-time, permanent employees in the first quarter of 2012-the highest increase since the recession began. And the momentum is expected to continue, CareerBuilder says, with 30% of employers reporting that they plan to add new full-time, permanent staff in April through June.

The national survey was conducted by Harris Interactive from Feb. 9 to March 2 and included over 2,000 hiring managers and HR professionals.

If that trend continues, interest in office buildings and for that matter multi-family units (a stable job means need for more independent housing)is sure to be positively affected.

To read more about the CareerBuilder Q2 Job Forecast, visit http://bit.ly/HnZkYG

Six Keys to Selling Your Home in Today’s Market

Rick Andrews — Mon, 14 May 2012 10:03:53 +0000

According to the National Association of Realtors®, more than 4.25 million homes sold in 2011. That’s a lot of real estate and such numbers raise the question: How are sellers doing it?

“Because individual homes are unique, there isn’t one single strategy that works equally well for every property,” says Wendy Forsythe, the executive vice president of a real estate company. “The real trick is understanding that today’s marketplace is cash driven, quick and highly competitive. Owners who understand their local markets and work with a knowledgeable agent are those most likely to succeed.”

In March roughly one-third of all sales were cash, meaning a large number of buyers are not dependent on lender financing, the sale of their existing home or a settlement that might be 45 to 60 days in the future. Instead, they can act quickly and in many cases seek properties which can be bought today and occupied tomorrow.

To ready a home for sale in today’s marketplace, Forsythe says owners should consider six basic keys to selling success.

Six Keys to Success

1) Curb appeal counts.
Most home buyers want homes which look great from the outside. It’s not just a question of curb appeal — it’s about perception. If a home looks good from the street it probably means the property is ready for a new occupant without a lot of cost or hassle.

Buyers tend to pass on a home that doesn’t appeal to them from the street — not even bothering to look inside. An experienced local REALTOR® can show you how to generate the most curb appeal with the least cost.

2) A clutter-free home.

With the new emphasis on cash sales and speed owners must show homes which are free and clear of clutter. A clutter-free home will make interior spaces look larger and eliminates the need to get rid of stuff when you are in the throes of moving. It makes sense to donate or reduce clutter before a home is placed on the market — not only as a sales tactic but also as a practical step toward relocation.

3) Working condition.

Having your home’s systems in good mechanical condition is an advantage in today’s market. Most distressed homes can’t compete when it comes to such basics as working heating, plumbing and air-conditioning. Properties that can readily pass a professional home inspection are often easier to finance, and are generally more appealing to buyers who don’t want to face the unknown costs and delays sometimes associated with major renovations.

4) List and negotiate properly.
According to Forsythe, “a seasoned REALTOR® can show owners how best to market a particular home according to such factors as location, price, condition and financing. Owners want to work with us because our experience brings value and confidence to a transaction, factors that are enormously important in a changing marketplace.”

5) Seek prequalified buyers.
While many sales may be for cash, the majority still require financing. It would be frustrating to enter into a sales contract with a potential buyer who ultimately cannot obtain financing to purchase your home — meaning you have lost time — and potentially money — and then you have to start over. When a home is shown by appointment, the buyer should have a pre-qualification letter in hand.

Such letters from lenders are not binding but at least show that the purchaser sat down with a loan officer and has some realistic sense of what he or she can reasonably afford.

6) Distressed properties.
Roughly 30 percent of today’s home sales involve “distressed” properties — a term which includes short sales and foreclosed properties owned by lenders. You need to consider the distressed properties in your neighborhood when pricing and marketing your home. These properties typically sell at discount, especially in major foreclosure centers and sometimes require substantial repair and rehabilitation.

“Home sellers can compete with these offerings,” according to Forsythe. “There’s no question that a large number of distressed properties in a local market will impact prices, but price is not the only factor buyers consider. While distressed homes work for some purchasers, they’re not the right choice for buyers who want homes that offer move-in condition — homes in better shape that can often command higher prices.”

While the housing market is just in the beginning stages of a recovery, it’s still possible to successfully sell your home by making sure you’re catering to the kind of buyers in the market today, and by making sure that you — and your home — are ready to move as quickly as these buyers are.

Tips for Buying and Selling Homes at the Same Time in Hiawassee GA

Rick Andrews — Mon, 14 May 2012 09:48:20 +0000

When you are buying a property while selling a property in Hiawassee GA your real estate agent is more important than ever. A qualified and competent agent should be able to give you an accurate estimation of the price your current property may trade for, which is crucial if the sale of the property is contingent on the purchase of another.

Follow the same basic rules when selling your home: get organized by disposing or donationg unused items, stage your property, and pack anything you don’t need on a daily basis in preparation for a move. Get a home inspection and make any necessary repairs for your potential buyers and a pre-approval letter to give to sellers of a property you may be interested in. Any proactive and preventative steps you complete will expedite both the home selling and buying process.

When listing your home be realistic with potential offers and ask for a closing date that fits your schedule. Perhaps, if the property you are purchasing is contingent on the sale of your current property, you can ask your buyers for an early closing date. If you have yet to find a property to purchase, you may ask for a later closing date so you won’t have to rent in the interim. No matter what your circumstances are, organization, pre-planning, in-depth knowledge of your finances, coupled with a skilled and experienced real estate professional, are vital aspects to the process.

New Report Shows Family Rental Markets with Highest Returns

Rick Andrews — Sun, 13 May 2012 10:48:23 +0000

There’s some good news for investors in single-family homes-particularly if you choose to rehab and rent, rather than sell, them.

A recent report by CoreLogic, a Santa Ana, Calif.-based provider of consumer, financial and property information, provides some insight into the single-family rental market and even indicates which markets across the United States have the highest rental cap rates.

With the recent emphasis on REO-to-rent programs, this is valuable information for single-family home investors.

According to CoreLogic’s April MarketPulse report, the West Palm Beach, Fla. market had the most attractive rental cap rate in April among the 26 markets studied by CoreLogic. As any investor knows, a cap rate, or capitalization rate, is a metric that is commonly used to determine the profitablility of a particular investment property, The cap rate in West Palm Beach in April was 12.4 percent, indicating that this market provides one of the highest returns to single-family home investors who opt to rent.

Other markets ranked highly in the April MarketPulse report in April were Cleveland (12.3 percent), Fort Lauderdale (12 percent), Chicago (11.6 percent) and Las Vegas (11.4 percent).

Markets with the lowest rental cap rates, on the other hand, included Honolulu (5.4 percent), Raleigh (7.3 percent) and Austin (7.7 percent).

For a complete copy of the April CoreLogic MarketPulse report, visit http://www.corelogic.com/downloadabledocs/MarketPulse 2012-April.pdf

79 Percent of Refinancing Homeowners Maintain or Reduce Mortgage Debt in First Quarter

Rick Andrews — Sat, 12 May 2012 11:03:21 +0000

Freddie Mac (OTC: FMCC) released the results of its first quarter refinance analysis showing homeowners who refinance continue to strengthen their fiscal house.

In the first quarter of 2012, 79 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table. Of these borrowers, 58 percent maintained about the same loan amount, and 21 percent of refinancing homeowners reduced their principal balance; the share of borrowers that kept about the same loan amount was the highest in the 26-year history of the analysis.

“Cash-out” borrowers, those that increased their loan balance by at least five percent, represented 21 percent of all refinance loans; the weighted average cash-out share during the 1985 to 2008 period was 50 percent.

The median interest rate reduction for a 30-year fixed-rate mortgage was about 1.5 percentage points, or a savings of about 27 percent in interest rate, the largest percent reduction recorded in the 27 years of analysis. Over the first year of the refinance loan life, the median borrower will save about $2,900 in interest payments on a $200,000 loan.

The net dollars of home equity converted to cash as part of a refinance, adjusted for inflation, was at the lowest level in nearly 17 years (since the third quarter of 1995). In the first quarter, an estimated $5.3 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages, down from $7.0 billion in the fourth quarter and substantially less than during the peak cash-out refinance volume of $83.7 billion during the second quarter of 2006.

Among the refinanced loans in Freddie Mac’s analysis, the median prior loan life was 4.3 years. One-half of the loans that were paid-off had been in place from between three and seven years, that is, had been originated between 2005 and 2009.

“The typical borrower who refinanced reduced their interest rate by about 1.5 percentage points,” says Frank Nothaft, Freddie Mac vice president and chief economist. “On a $200,000 loan, that translates into saving about $2,900 in interest during the next 12 months. Fixed-rate mortgage rates hit new lows during March, with 30-year product averaging 3.95 percent and 15-year averaging 3.20 percent that month, according to our Primary Mortgage Market Survey®.

“The enhancements to HARP announced in October, such as removing the maximum loan-to-value limit, are beginning to show up in additional refinance volume during the first quarter. HARP loans were 20 percent of Freddie Mac’s refinance fundings during the first quarter, the highest share since HARP’s inception.”

For more information, visit www.freddiemac.com.

Union County Georgia Home Sales

Rick Andrews — Sat, 12 May 2012 10:56:49 +0000

Union County Georgia Home Sales – by Month

	Active	SOLD 2012	SOLD 2011	SOLD 2010
January	391	29	17	20
February	396	23	38	20
March	415	31	32	32
April	441	31	23	18
May			35	32
June			37	20
July			31	30
August			47	37
September			43	30
October			33	33
November			25	40
December			32	29
TOTAL	——–	114	392	342

Union County Georgia Home Sales – by Price Range

	-2012-	-2011-	-2010-
Under $99,999	40	124	91
$100,000 – $199,999	54	179	155
$200,000 – $299,999	13	54	43
$300,000 – $399,999	3	23	13
$400,000 – $499,999	2	6	2
$500,000 – $599,999	1	3	1
$600,000 – $699,999		2	3
$700,000 – $799,999		1
$800,000 – $899,999
$900,000 – $999,999	1		1
Over 1 million
TOTAL	114	392	309

Union County Georgia Home Sales Summary

	2012	2011	2010
Total Sold	114	392	342
Average Days on Market	175	161	180
Average List Price	$154,674	$169,393	$169,568
Average Sold Price	$143,547	$154,972	$153,869
Lowest Sold Price	$14,900	$13,800	$18,500
Highest Sold Price	$950,000	$720,000	$950,000
Volume Sold	$16,364,364	$60,749,203	$52,623,105
Price Differential Sold to List	92.81%	91.49%	90.74%
Price Differential Sold to Original	82.02%	71.44%	80.18%

Union County Georgia Vacant Lot Sales – by Month

	Active	SOLD 2012	SOLD 2011	SOLD 2010
January	551	9	13	7
February	559	15	11	4
March	551	9	11	3
April	550	9	7	8
May			7	8
June			23	8
July			5	6
August			9	16
September			11	9
October			6	11
November			11	13
December			12	11
Total	————	33	126	104

Union County Georgia Vacant Lot Sales Summary

	2012	2011	2010
Total Sold	33	126	91
Average Days on Market	320	297	312
Average List Price	$20,488	$26,517	$35,569
Average Sold Price	$17,021	$18,133	$24,853
Lowest Sold Price	$4,845	$4,400	$5,250
Highest Sold Price	$60,000	$74,520	$88,180
Volume Sold	$561,695	$2,284,746	$2,261,626
Price Differential Sold to List	83.08%	63.38%	69.87%
Price Differential Sold to Original	53.74%	50.98%	55.55%

All statistical information has been obtained through the Northeast Georgia Board of Realtors MLS and regards solely realtor sales. This information is deemed accurate, however, is not guaranteed. If you have any questions regarding real estate in Hiawassee, GA; Young Harris, GA; Blairsville, GA or Hayesville, NC please contact me at 828-557-9139 or email me at Rick@scenic21.com.