Athens Georgia Homes - Athens GA MLS Search

Foreclosures in the Greater Athens GA area

2009-08-26T07:56:00.002-04:00

Foreclosures in the Greater Athens GA area now linked via the Athens MLS and GA MLS to the Blog Roll. Make your foreclosure searches even easier!

Neighborhoods and Condominiums Around Athens, GA

2009-08-25T13:10:00.004-04:00

Neighborhoods Around Athens:

Boulder Springs - www.boulderspringssubdivision.com - low 400's
Bridlegate Homes - www.bridlegate.com
Bryce Landing - www.brycelanding.com - 180's to low 200's
Clarksboro - www.clarksboro.com - 300's to 400's
Colleton Oaks - www.colletonoaks.com - low 200's
Falling Shoals - www.whiteoakhomesinc.com - from the 200's
Lakewood Manor - www.aliciaappling.com - low 600's
Meridian - www.meridianoconee.com - from the 550's
Oak Grove - www.oakgroveathens.com - 200's to 500's
Saddle Shoals - www.saddleshoals.com - mid 600's to 1M
Townside - www.townsidehomes.com - 250's and up
Vintage Farms - www.vintagefarmsoconee.com
White Oak Homes - www.whiteoakhomesinc.com

Condominiums Around Athens:

Remember that "Agency" in Real Estate defines the relationship you have with a REALTOR and who is looking out for your interests (i.e. Listing Agents represent the Seller).

Through my Buyer Rewards Program (full details at www.AthensGaHomesForSale.com) as a benefit to Buyer's working through me I give up to 1% of Seller Paid Commission toward the reduction of the purchase price of a home purchased through me! That is what I call a "Win-win!"

Foreclosure for Sale! Sure they are out there but are people really buying them?

2009-08-25T12:10:00.000-04:00

Posted on March 6, 2009 by hankbailey

For months now all we hear is how many foreclosures are happening “all around us.” RealtyTrac.com for example has made a huge amount of money focusing on nothing but foreclosures. Six out of their last nine press releases have dealt with foreclosure activity in and around the United States. You hit the “Why Join?” tab and it takes you to a 7-day free trial where it is indicated that you would be provided with unsurpassed foreclosure data including access to make an offer directly to the lender.

My question has been, while foreclosures are prevalent, are we buying them? I mean all the property “virgin” shows on HGTV lately have shown young first-time home buyers offering “full price or better” on foreclosures in order to get a deal on that home being sold “as-is.” We Americans must be buying these homes in mass, right?

According to the NAR’s Profile of Buyers and Sellers for 2008, no we’re not. According to the study it showed that only 6% of homebuyers bought a property in foreclosure in 2008. Of first-time homebuyers it was a tad higher at 7%, but on the whole the study showed that 56% of homebuyers did not even consider a foreclosure in their home buying plans.

Of the 38% that did consider buying a foreclosure, 21% could not find the right home, 12% each found the process too difficult or the home was in poor condition. Poor financing options accounting for another reason that the foreclosure sale did not happen or the home was in an undesirable neighborhood.

What I really find humorous was that 5% of buyers found the “price was too high” on the foreclosed property for resale! You would think that in buying a foreclosure you are getting a “deal,” but not always. I had a situation like this in our area where a buyer client wanted to consider a foreclosure, but there were two offers on the table and the bank was treating it as basically an auction where Realtors were asked to fax offers to a central number where they bank would take the best offer. The price needless to say got bid up so high my client found a beautiful home he ended up buying from a seller who had this home on the market for over a year, was in great shape, and he even got a home warranty out of it.

In the end, you hear conflicting information from the national media. I just don’t think the numbers stack up in their favor. I still find that a buyer would rather deal with a seller who is not a cold, “only care about the numbers,” bank.

If you are looking to purchase a home in the Greater Athens area, please feel free to use this link to Search the Athens MLS ! While on the Georgia MLS you can search for homes, create a User account to save favorite property searches, email property searches to friends and family, or request more information!

The link to my Featured Properties can take you to any number of properties that I am Marketing currently for Sale.

Quarterly Housing Market Performance for Athens-Clarke

2009-08-25T11:40:00.004-04:00

FHFA (Federal Housing Finance Agency) uses the revised Metropolitan Statistical Areas (MSAs) and Divisions as defined by the Office of Management and Budget (OMB) in 2008. These MSAs and Divisions are based on 2000 Census data. According to OMB, an MSA comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county as measured through commuting.

For information about the current MSAs, please visit:
http://www.whitehouse.gov/omb/bulletins/fy2009/09-01.pdf

MSA HPI Comparisons

Four-Quarter Percent Change in FHFA MSA-Level House Price Indexes (All-Transactions Index, 2009Q2)

Year	Quarter	Athens-Clarke County, GA	Atlanta-Sandy Springs-Marietta, GA
2009	2	-1.53	-3.49
2009	1	-0.90	-1.73
2008	4	1.43	-2.89
2008	3	-0.40	-2.05
2008	2	3.81	-0.58
2008	1	2.94	1.07
2007	4	2.28	1.42
2007	3	4.10	2.17
2007	2	4.50	3.70
2007	1	5.09	3.49
2006	4	5.76	3.47
2006	3	4.76	2.65

What we see is a relative strength in Athens-Clarke as compared to Atlanta since third quarter of 2003. Not surprising, but Athens has maintained a price level in the past four quarters of about 98.5 percent of where home price values were a year ago this time. In comparison, the Atlanta market is roughly 89.68 percent of where it was at the beginning of Q2 2008.

MSAs are defined by the Office of Management and Budget (OMB). If specified criteria are met and an MSA contains a single core population greater than 2.5 million, the MSA is divided into Metropolitan Divisions. The following MSAs have been divided into Metropolitan Divisions: Boston-Cambridge-Quincy, MA-NH; Chicago-Naperville-Joliet, IL-IN-WI; Dallas-Fort Worth- Arlington, TX; Detroit-Warren-Livonia, MI; Los Angeles-Long Beach-Santa Ana, CA; Miami- Fort Lauderdale-Miami Beach, FL; New York-Northern New Jersey-Long Island, NY-NJ-PA; Philadelphia-Camden-Wilmington, PA-NJ-DE-MD; San Francisco-Oakland-Fremont, CA; Seattle-Tacoma-Bellevue, WA; and Washington-Arlington-Alexandria, DC-VA-MD-WV. For these MSAs, FHFA reports data for each Division, rather than the MSA as a whole. FHFA requires that an MSA (or Metropolitan Division) must have at least 1,000 total transactions before it may be published. Additionally, an MSA or Division must have had at least 10 transactions in any given quarter for that quarterly value to be published. Blanks are displayed where this criterion is not met.

Athens, GA First-Time Home Buyer Tax Credit: A Wealth of Information is Available

2009-08-25T06:52:00.000-04:00

By Danielle Hale, Research Economist

This commentary was prompted by a recent conversation I had with a Realtor® who was lamenting the fact that a first-time buyer who had a co-signer did not qualify for the first-time home buyer tax credit. “That’s not true!” I said and pointed her to an IRS website that stated otherwise. Since this is not the first time I have heard incorrect information on the tax credit from a Realtor®, the news media, or other person or entity that should be in the know, I thought it would be a good time to remind everyone of the basics and show you where to go when you have questions.

The Basics

First-time home buyers who purchase a home to be used as a primary residence before December 1, 2009 are eligible for a tax credit equal to 10 percent of the value of their home purchase up to $8,000. To qualify as a “first-time home buyer” the purchaser and his/her spouse (if applicable) may not have owned a residence during the three years prior to the purchase. The credit is subject to income limits. Single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the maximum tax credit. The credit decreases for single buyers who earn between $75,000 and $95,000 and for married buyers filing jointly who earn between $150,000 and $170,000. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit. Unlike the credit for homes purchased in 2008, the tax credit for purchases in 2009 does not need to be repaid unless it ceases to be the primary residence of the tax credit recipient within three years after the purchase. In that case, the credit recipient will owe the full amount of the credit at that time the income tax return for the year the home ceased to be your principal residence is due. (i.e. You sell your home on January 1, 2010 or December 31, 2010; the full amount of the credit is due when your tax return is due on April 15, 2011.)

Limited, But Still Powerful

As of now, the credit is still limited to $8,000, available only to first-time buyers, and can be used on purchases that close before December 1, 2009. Still, we expect the tax credit in its current form to impact the market by bringing in a substantial number of home buyers. Check out this analysis done by Research after the credit passed in February to get the full picture. Currently, the National Association of REALTORS® is advocating for changes that would extend the time period for eligible purchases or expand the credit to all buyers. For more information on the legislative picture, visit the National Association of REALTORS®’s government affairs website.

Available at Closing!

While the tax credit itself cannot be claimed until a tax return is filed after a home has been purchased, the FHA recently announced changes to rules that enable FHA lenders to monetize the credit so that a buyer can use it for certain purposes at closing. In order to take advantage of this program, a buyer still must meet FHA’s 3.5 percent minimum down payment requirement. Before FHA’s announcement, certain states had instituted their own monetization programs that enable the monetized credit to be applied to the 3.5 percent minimum down payment. For more information on state level programs, check out this site.

Resources Available from the National Association of REALTORS®

The National Association of REALTORS® has a wealth of information to help everyone make sense of the tax credit. Visit our home buyers and sellers resource page on the tax credit here.

If you’re looking for resources to help you get the message out to potential first-time buyers, be sure to check out the Right Tools Right Now page where you’ll find a special section full of free tools on the tax credit and information about working with first-time buyers.

Resources Available from the IRS and FHA

Of course sometimes it’s nice to go straight to the source. The IRS has some helpful web pages on the tax credit, too. Check out the overview page.

Also be sure to visit the “Scenarios” section of the question and answer page for guidance on issues such as splitting a credit between non-married persons, having cosigners, how to handle the credit for married couples. For further clarification, consult with a tax attorney.

The tax credit is a great opportunity for first-time buyers, but it is only available for a limited time. Be sure you are up to speed on the tax credit provisions that are currently in the law so you can help buyers take advantage of this opportunity.

If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS with MapTracks please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!

Copyright National Association of REALTORS®, Reprinted with permission. Photos courtesy of Athens Convention and Visitor's Bureau

Taking the Long Out of the Short

2009-08-25T06:51:00.001-04:00

For many sellers the “short” sale process is anything but; it can be much more tedious than the phrase implies. Realtors® say the extensive delay in the short sale process has caused many buyers to go elsewhere, forcing many sellers into foreclosure.

Now the U.S. government is stepping in to help homeowners facing foreclosure by streamlining the process for short sales and deeds-in-lieu of foreclosure. The U.S. Treasury recently announced new incentives under the Making Home Affordable Program to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and help many of them protect their financial futures.

Best Laid Plans

From my own experience, and from talking to other Realtors® to get their insights into short sales in today’s real estate market, it seems that we all have the same client experiences. The short sale process and outcomes regarding these transactions, for both buyers and sellers are still as tiresome as ever.

It still takes time, and time is what most buyers don’t feel they have to provide due to the fact that there is still roughly 10 months of inventory for sale. Especially this time of year, buyers are trying to get situated before school starts back. The desire is for a quick purchase and to move to settle in before the fall of the year. Short sales delay this process for weeks whereas a bank owned foreclosure resale can be something negotiated with the bank after the foreclosure and be handled in a relatively short period of time.

Statistics - Foreclosure Resales in Athens; Y-T-D 2009 (66 listings)
	Low	High	Average	Median	Total
List Price	$11,900	$395,000	$120,163	$107,450	$7,930,750
Selling Price	$9,200	$330,000	$112,506	$105,501	$7,425,374
List/Sold(%)	74.07%	122.18%	94.82%	95.21%	--
Price/SqFt ($)	$0.00	$194.15	$46.16	$47.50	--
Days on Market	22	682	152	92.5	--

Athens GA Real Estate Trends and Analysis

2009-08-24T10:53:00.002-04:00

If you haven't had your home on the market for the past 12 months you probably don't know what to expect in terms of DOM (days on market). How have properties in Athens, GA performed under pressure?

Time on Market Analysis
For Units Sold
Days	Residential	Other	Total
0 - 30	22	2	24
31 - 60	101	7	108
61 - 90	122	3	125
91- 120	94	1	95
121+	446	5	451

Out of 803 residential properties sold in the last 12 months (through 8/24/09), roughly 3 out of 5 was on the market for more than 121 days. The price point with the longest DOM was actually between $250,000-$299,999 where the average home sold in 346 days on market! The price range with the most homes sold was between $100,000-179,999 where more than half of all homes in the Athens area sold.

How about financing? How are people finding money for home purchases and putting deals together in this period of tight credit?

Type of Financing Analysis
For Units Sold
Financing	Residential	Other	Total
Cash	161	8	169
VA	7	0	7
Owner Financing	4	0	4
Conventional	387	9	396
FHA	204	1	205
Other	22	0	22

A full 1 buyer in 4 was able to obtain FHA backed financing. "Conventional" financing was most dominate with roughly half going that route while a few put together deals with the help of VA and owner financed arrangements. What might surprise you is that almost 1 home in 5 was a cash purchase!

There are still homes being bought and sold and money to be found in the purchase of a home when the "deal" is found or that right "first" or "step-up" home is being sought after. The key is to keep looking! Right now homes are at such a relative bargain.

Housing Affordability Continues To Hover Near Highest Level In 18 Years

2009-08-24T09:33:00.003-04:00

"Bolstered by affordable interest rates and low prices, nationwide housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago," according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released last week.

According to Wells and the NAHB, "the 72.3 percent of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5 percent during the previous quarter and up from 55.0 percent during the second quarter of 2008."

“The increase in affordability — along with the $8,000 federal tax credit for home buyers — is stimulating demand, particularly among young, first-time buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “But to keep the recent upturn in home sales going into next year, Congress will need to extend the tax credit for another year and make it available to all buyers in an effort to encourage activity in the trade-up market.”

Difficulties in Obtaining Mortgages; Do they still Exist?

2009-08-22T12:09:00.000-04:00

Posted on March 9, 2009 by hankbailey

Over the past year we have been inundated by news of hard credit, a lack of credit, and the pains of the mortgage process. What is real and what is perception however might be two different things. In a study of 2008 buyers and sellers done by the National Association of Realtors it apperas that only 7% of all home buyers felt the mortgage process to be more difficult than expected. In fact, 73% found the mortgage process not difficult or no more difficult than expected.

What about the dreaded thought of being rejected for a mortgage? 93% of buyers were successful in obtaining financing for their home purchase. Only 5% where rejected on their first mortgage application while 3% where rejected by two or more lenders before finally obtaining a loan.

The reality seems to be that the process is not as difficult from the buyer’s standpoint as it may be to the loan officer, appraiser, Realtor, and loan underwriter. Hopefully this means that all of the above shelter properly and do a good job professional job at hiding the innate stresses of our jobs!

The link to my Featured Properties can take you to any number of properties that I am Marketing currently for Sale.

http://athens-ga-homes.yourkwagent.com/

Athens GA Home Sales, week of Aug 17, 2009

2009-08-20T15:48:00.003-04:00

During the week of August 17th, we have seen fifteen sales in Athens, GA. Of these roughly 27 percent were listed for more than $300,000. Of these we find the following statistics;

Statistics Sales Above $300k List Price (4 listings)
	Low	High	Average	Median	Total
List Price	$315,900	$399,900	$348,800	$339,700	$1,395,200
Selling Price	$288,600	$378,000	$318,400	$303,500	$1,273,600
List/Sold(%)	86.79%	94.52%	91.14%	91.63%	--
Days on Market	90	118	100	96	--

Of properties listed for under $300,000 (chart below) we found that Athens, GA home sellers are still getting a high percentage of list price. Higher end homes seemed to sell at more of a discount during the week to get them moved quickly. This is a testament to some of the lowest days on market that we have experienced this year thus far.

Statistics Sales Below $300k List Price (11 listings)
	Low	High	Average	Median	Total
List Price	$62,500	$279,900	$143,591	$133,000	$1,579,500
Selling Price	$60,000	$259,000	$137,055	$132,000	$1,507,600
List/Sold(%)	88.06%	100.00%	95.83%	96.08%	--
Days on Market	37	288	131	84	--

All in all, the most popular price range in the Athens area is between $120,000-$180,000 as I have noted in other recent posts. If you are in this price range please know that you won't have to budge much when that offers comes!

Greater Athens area Sales Trends and Market Data

2009-08-20T14:13:00.003-04:00

Through August 20, 2009, performance in different sectors of our market;


	Homes Sold	$ Volume
Year To Date	% Change	% Change
Oglethorpe	5.08%	-21.60%
Barrow	-35.73%	-47.55%
Jackson	-14.75%	-29.40%
Oconee	-28.98%	-36.99%
Athens-Clarke	-36.25%	-42.52%

Keep in mind that a decrease in sales volume doesn’t necessarily mean that prices have decreased. It does show that lower priced homes have been the norm to sell this year as opposed to last. Areas of the Athens market beating the norm are homes priced between $30,000-$69,999. Sales of homes in this price range have actually increased this year in terms of the number of homes sold. Hardest hit price points are from $180,000+ which have had a reduction in the number of homes sold within higher price ranges of anywhere from 50 to 81 percent during 2009. In Oconee County are seeing an increase for the year in sales up to $120,000 over last year and then decreases in sales figures as we start climbing over $200,000.

Areas we have seen life in during these summer months are between $200,000-$299,999. In this range we have seen an increase in the number of homes sold, as compared to last summer, of 19 homes sold versus 7 a year ago which is almost a 300% increase year over year. Also 3 out of 5 homes sold in Athens in the last two months were sold between $120,000-$180,000.

Your Home is being marketed on the Net; Is anyone seeing it?

2009-08-20T12:08:00.000-04:00

Posted on March 10, 2009 by hankbailey

According to Hitwise, a company which provides insights on how 10 million Internet users interact with more than 1 million websites, across 165+ industries, has provided their monthly traffic report on real estate websites. If your listing or property for sale is not on several of these top sites, you need to start asking why. The sites are ranked on share of visits from a total Hitwise sample of 10 million Internet users.

Realtor.com seems to own the top spot with a 6.97 percent of the market share of all visits to real estate-related web sites.

Yahoo Real Estate (realestate.yahoo.com) ranked second with a 4.38 percent share, followed closely by Zillow.com (3.1 percent) which held third position again this month. How about the rest of the top 10? ZipRealty.com , Rent.com, the U.S. Department of Housing and Urban Development’s, HomeGain.com, ServiceMagic.com, and Trulia.com rounded out the list.

http://athens-ga-homes.yourkwagent.com/

Top Real Estate Websites for Athens, GA or your Town 8/15/09

2009-08-20T07:16:00.004-04:00

The following report shows websites for the industry 'Business and Finance - Real Estate', ranked by Visits for the week ending 08/15/2009. Data via Hitwise.com

Rank Website Visits

1. Realtor.com 7.42%

2. Zillow 3.36%

3. Yahoo! Real Estate 2.79%

4. ZipRealty 2.71%

5. Rent.com 2.33%

6. Trulia.com 2.15%

7. ServiceMagic 1.93%

8. MSN Real Estate 1.91%

9. Homes.com 1.66%

10. RE/MAX 1.53%

According to Hitwise, among the most popular search terms leading to real estate-category Web sites during the four-week period ending July 25: "realtor.com," "zillow," "real estate," "apartments for rent," "zillow.com," and "homes for sale.”

Does your REALTOR® Blog?

2009-08-19T12:07:00.000-04:00

Posted on March 11, 2009 by hankbailey

source: 2008 NAR Member Profile

“The percent of REALTORS® who have a real estate blog doubled to 8 percent in 2008 from 4 percent in 2007.
An additional 13 percent of REALTORS® plan to have a blog in the future.
Nearly one in ten REALTORS® younger than 60 years of age have a blog.
Additionally,one in five REALTORS® 29 years old or younger reported that they plan to start a blog in the future, decreasing to a still significant one in ten among those 60 years or older.”

Does your REALTOR® blog? If not, why not? If they blog, does their blog seem to be an attempt at a blog post here and there randomly or is it a part of their business practice? Blogging is, or at least it should be, more than random thoughts about what restaurant they had lunch at yesterday. More than a blurb about the last parade through town, or their last open house experience. It should be a study (for the REALTOR®) and a reflection of knowledge that they have obtained about their town and the real estate business. Through blogging we are able to show an almost inexhaustable body of work that shows we study our business daily.

Real Facts about Athens Georgia Real Estate

2009-08-18T12:05:00.000-04:00

Posted on March 13, 2009 by hankbailey

Real Facts about Athens Georgia Real Estate as provided by the Athens Georgia Area Association of REALTORS® with market update from Hank Bailey.

The Athens Georgia Area Association of REALTORS® has teamed up with the National Association of Realtors® to give Athens Georgia area regional residents the facts about homeownership and information about the local real estate market. Would-be homeowners who are uncertain about their home buying plans can learn more about the options available to them and the long-term benefits of owning a home through a new advertising campaign that will provide current, relevant housing data to help them make an informed decision. Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing-sales series. A Federal Reserve study has shown that the average homeowner’s net worth is 46 times the net worth of the average renter. Despite this and other research, some potential home buyers are being kept on the sidelines as they react to national media reports about the housing market.

“Nobody buys a home in the national real estate market,” said NAR President Dick Gaylord. “All real estate markets are local, and buyers and sellers who are thinking about making a move should consult with a Realtor? in their local market to learn about conditions specific to the area. It’s also advisable to look beyond the immediate horizon – real estate has proven itself to be a good long-term investment and a safe, secure way to build long-term wealth.”

According to the Multiple Listing Service of the Athens Georgia Area Association of REALTORS®, Athens Georgia real estate prices prove to remain on a steady rise in the Athens regional area unlike much of what in reported in the media for the nation. In Oconee County, the average residential sold price was $279,615 in 2005. In 2007, the Athens, GA MLS reports that the average sold price rose to $321,207. In Clarke County the Athens, GA MLS residential reports show that the average residential sold price in 2005 was $184,119. In 2007, that average rose to $189,934. Madison County has also had a strong increase in prices with an average residential sold price in 2005 at $159,753 and increasing to $164,758 in 2007. In addition, the Athens, GA MLS shows that Oglethorpe County prices held strong with an increase from 2005 at an average price of $149,263 to $160,472 in 2007.

Market Update; In the Q4 Real Estate Market Report, Zillow.com, it was reported that the market declined 11.6% from a year ago. In 2008 the average residential sales price in Clarke County, through the Athens, GA MLS was $189,017. A modest decrease from the previous year’s $189,934. In Oconee County, where the average residential sales price rose in 2007 to $321,207, in 2008 sales prices rose again to $322,378.

http://athens-ga-homes.yourkwagent.com/

First Time Home Buyer; Got the FICO, need the 3-4% Down. I might know where you can find it tax free!

2009-08-17T12:02:00.000-04:00

Posted on April 3, 2009 by hankbailey

With all of the talk about the $8,000 tax credit for first time home buyers, the fact that there is potentially “more” tax free money that can be used toward the purchase of a first time home, might be escaping us. The Roth IRA. Yep. According to the IRS’ website, “You do not include in your gross income qualified distributions from your Roth IRA. You may have to include part of other distributions from Roth IRA(s) in your income.” Okay this we know.

The site goes on to say, “A qualified distribution is generally, any payment or distribution made after the 5–taxable–year period beginning with the first year for which a contribution was made to a Roth IRA set up for you, and that is made on or after you reach age 59 1/2, made because you are disabled, made to a beneficiary or to your estate after your death, or that is made to buy, build, or rebuild a first home. A distribution used to buy, build or rebuild a first home must be used to pay qualified costs for the main home of a first time home buyer who is either yourself, your spouse, or you or your spouse’s child, grandchild, parent, or other ancestor.” As my twenty-something year old niece would say, “hey HEY hey. “

The IRS rules allow that up to $10,000 in “earnings” can be withdrawn after the 5 year period. This means that if you have an ROTH and it was first funded six (6) years ago this year, you are probably in business. Now, should you use these dollars toward a purchase your new home? Good question. I could definitely make the case that with affordability at 50 year lows that it makes sense. If you have the money in some fixed investment or the stock market it might make better sense. If “not” using your ROTH would prohibit you from buying your first home and taking advantage of the $8,000 tax credit which would essentially increase dollar for dollar (up to $8,000) your ROI (return on investment) in your new home, then yes I would have to say it is an absolute must to “raid your ROTH.”

Also, and don’t miss this point, the IRS says “used to pay qualified costs for the main home of a first time home buyer who is either yourself, your spouse, or you or your spouse’s child, grandchild.” This means that if Mom or Dad want to help you get into that first home, they can tax-free. That means Grandma or Grandpa can do the same.

Now you don’t have to use a ROTH to help you out, but consider that tax laws change like the wind. You can’t count on what they might be a year from now much less 10, 20, or 30 years down the road. You can take advantage of what we know today however to make your first biggest investment of your life!

These are probably the best buying conditions in 30 years! If you would like to search the Athens MLS please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!

Athens GA Homes, Market, and Trends

2009-08-17T07:19:00.004-04:00

Home Sales statistics in Athens, GA over the past week;

Statistics (22 listings)
	Low	High	Average	Median	Total
List Price	$28,500	$670,000	$192,549	$144,500	$4,236,074
Selling Price	$28,500	$610,000	$179,591	$136,000	$3,951,000
List/Sold(%)	78.35%	101.35%	93.97%	94.75%	--
Days on Market	19	906	227	121	--

While days on market were a little higher than had been the norm of late, the average priced sale was also a bit higher thanks to a full 21 percent of sales being in excess of $300,000. 63 percent of these sales were in East Athens, which remains a hot spot in town due to lower than the overall median home price for the area.

On sales over $300,000 this week we saw an average List/Sold percentage of "only" 91.77 percent with the low at 88 percent of List/Sales price. Compare this to sales price below $215,000, and we see at List/Sold percentage or ratio of almost 95 percent of list price.

As far as foreclosure sales are concerned, only 3 out of these 22 home sales were bank owned sales. Compared to the most recent figures from the NAR where in July 31 percent of homes sold nationwide are foreclosure sales, our 13.63 percent of foreclosure sales is thankfully low in comparison. In fact, if you go back over the past six months in Athens, GA you will find 71 bank owned foreclosure sales out of 468 total homes sold. Foreclosures nationwide have made up anywhere from a high of 49 percent of the market down to a recent 31 percent in recent months. At 15.3 percent over this time frame, we have had a relatively consistent market on distressed property this year. Consistently low as compared to non-distressed sales.

This is a great deal to be thankful for in our marketplace!

No Down Payment No Problem; FHA to the Rescue

2009-08-16T12:02:00.000-04:00

Posted on April 8, 2009 by hankbailey |

As a follow up to my April 3, 2009 post, “First Time Home Buyer; Got the FICO, need the 3-4% Down, I know where you can get it Tax Free,” I noticed that FHA loans also allow gifts for the entire down payment and closing costs. This is huge whether or not Mom and Dad have a ROTH, as previously posted.

No down payment, no problem. Just make sure you discuss with your lender what time frame is needed for Mom and Dad to make the gift before jumping in and doing it. This could save some headache and hassle down the road.

Locking in your Mortgage Rate

2009-08-16T07:21:00.000-04:00

Mortgage Shopping; Negotiating

2009-08-16T07:20:00.002-04:00

Nothing says “Pre-Foreclosure” like a Vacant Home!

2009-08-14T12:00:00.000-04:00

Posted on April 15, 2009 by hankbailey

If you are one of thousands of sellers all across the fruited plain that has a vacant home you are trying to sell, let me give you some advice, raise the price and keep it from looking vacant. Okay, well maybe don’t raise the price, but nothing seems to slow down the selling process like trying to sell a vacant home. Buyers and real estate professionals seem to smell “distressed sale” even though that vacant home may not be a distressed sale. Assumptions by potential buyers on the current financial status of many a vacant home has killed an owner’s chances of getting it sold at market value, and they tend to sit on the market much longer than occupied homes for sale. From my experience as a real estate broker, here are some tips to live by in selling your vacant home.

*Give the house a lived-in look. See if a neighbor or close by family member would help by making the house look occupied. Have them park a car in the driveway, open and close the blinds, and take in any stray newspapers off the driveway. This can also be accomplished, by letting a college aged child live in the property while for sale. On one of my listings we are taking this option. He needed a place to live during his Junior year of college, so he is going to stay and live in the home while it is on the market.
Now-a-days there are even house sitter services that will put someone in the property while for sale to maintain it for the seller. Another option is Home Staging. This can be expensive, especially on a tight budget, but may be well worth it in certain price ranges depending on your home and location.

*Maintain the look of the yard. I have had buyers attracted to one listing over another due to the fact a lawn looked cared after. Unless you are going to do this yourself, hire a lawn service during the summer to keep the grass cut, edged, weeds pulled out of the beds, and limbs off the lawn.

*Do some Home Staging on your Own. Touch up the paint, repair nail holes when removing pictures or mirrors from the walls, and replace rugs so there are no faded spots or blemishes on the walls. Keep some of your furniture in the home if at all possible. Set up sitting areas, as a good home stager would do. If you have a love seat and a full sized sofa in the living room, take the sofa and leave the love seat. Remove the King sized bed in the Master or Owner’s suite and replace it with a Queen. Get your larger, bulkier, furniture out of the house and replace or leave smaller pieces to emphasize the space.

*Leave the Utilities Running. Most thermostats today have the wonderful ability to program a comfortable temperature during the winter and summer months without having to worry about the inside temps in your home. Also, keep them going. If you don’t want to seem desperate and the property hurt by feeling like a “distressed sale” remember also that nothing says “foreclosure” more than walking into a home with no power! Keep paying those utilities.

*Hiring a maid service and other tips. Make sure the home remains cared for through at least having a monthly service check for cob webs, dust, and even sweeping or mopping floors. If you are getting some traffic coming through the house to view the property, it makes a better impression if the floors remain clean. A trick to use is to keep two baskets by the front door with disposable shoe covers. One for new and one for those discarded after use. Believe me when I say that anyone looking at your home will be impressed that you care enough to protect your home from excess traffic that you provided and request for anyone showing or previewing the home to wear disposable shoe covers than the dozens of homes that your potential buyers may look at which do not. Whether they wear them or not while previewing your home, the point will be made!

Words not to use when Advertising your Home

2009-08-13T15:12:00.004-04:00

Got a PDF today regarding words that you are not supposed to use per the following remarks from our MLS. The local board stated, "Attached are the list of words that you are not allowed to use according to HUD. It has come to the MLS board's attention that many agents across the board are in violation with their listings and especially public remarks shown on pictures. Please police your own listings to make sure you are in compliance."

Wow! Made me afraid. What could it be that people are saying or words they are using to send an email out to every local real estate professional?!?!

Some of it is real. For example you can't use terms that discuss ethnicity, nationality, or religious institutions in a given area near a home for sale. Even if it is near the "Baptist Church," you can't "say" that or risk offending HUD. In the "BIBLE belt" it can be pretty difficult to omit every church that might be nearby a home you happen to be selling.

What I thought was funny however were a few of the terms you CANNOT USE! One in particular struck me as funny. The term is "Anglo Saxon." Just WOW! I never would have thought of that one. Frankly, if you are Welsh or Irish you might be offended, but who in this country and in this day and time (especially with our educational system) would know or care what an Anglo-Saxon was anyway? Who would use that term to describe a home? I can see it now;

"Beautiful 3 bedroom/2 bath for the Anglo Saxon in you!"

It is kind of a Jeff Foxworthy(ism) that says, "If they put it in the list of words not to use, then some dang fool used it."

Terms that you MIGHT USE, which means they may violate the rules still, are words like "fisherman's retreat." Yes, you read me right. This term "may" violate the law. We don't want any fish getting offended and we also don't want to be providing an unfair advantage to the fish!

Another that I know you have seen is the term, "handyman's dream." You can say "fixer-upper," but again, we don't want to have people assuming we only sell to "handymen." If you want to use it, beware! If you want to use the word Catholic or Mormon in your advertising you had also better think about it, but according to the rules please state proudly in your advertisement the word "EASTER BUNNY!" It is actually in the list of okay phrases. Again, who would use this term in an advertisement to sell a house?

We MAY NOT say Christian, but we can say "Happy Easter" and "Merry Christmas." Also, don't even dream of using the word "Empty Nesters." The word "traditional" might violate the law if you use it, and while our own Association has changed "Master" Suite or bedroom to "Owner's Suite," HUD says that Master Bedroom is perfectly fine to use. No worries, you won't offend anyone so says our government!

The words "must comply with park rules" and "newly-weds" are potential no-no's, and while you can't use the term Jewish, you can specify that "kosher meals available" with confidence. Now how does that make any sense?

In the end, feel good because "nanny's room" is okay to use with no one need be ashamed!

First Time Home Buying in Athens, GA; Buying Vs Renting

2009-08-13T09:26:00.010-04:00

There are many variables that go into the decision to Buy versus Rent. I found a neat tool that might be useful in determining whether or not the decision to Buy makes sense. Before I give you the link, I would like to show you a scenario or two I am working out on my own.

Buying Versus Renting

Buying a home would save you approximately $71,374 (in today's dollars) over 15 years, compared to renting, based on the assumptions you provided.

Cost comparison		Rent	Buy
Rent and fees		$243,126
Mortgage payments			$279,443
Property insurance	+		$21,579
Property taxes	+		$37,762
Maintenance	+		$7,500
Opportunity cost	+		$45,136
Tax savings (interest/taxes)	-		$30,046
Home Appreciation	-		$215,786
Total cost	=	$243,126	$145,588
Present value at inflation		$182,609	$111,235
Difference			$71,374

What is neat about this is that based upon the following variables and assumptions that buying definitely works. It shows that in 15 years, you would own your home, and would have saved $71,374.

Rent assumptions

Monthly rent payment

Additional monthly fees

Monthly renters insurance

Annual rate increase

(0-10) %

Purchase assumptions

Price of property

Down payment

Loan amount

Annual interest rate

(0-30) % 5.5

Loan term

(1-30)

Annual appreciation rate

(0-10) %

Annual homeowners insurance premium

Annual property taxes

Annual maintenance cost

Other assumptions

Number of years for the comparison

(1-30)

Marginal tax bracket

(0-50) %

Before tax return on savings

(0-12) %

Assumed annual inflation rate (0-10) %

What if we drop the price by another 10%? I mean after all the harbinger's of doom are still preaching that the sky may yet to fall some more. (**Note** In multiple blog posts of late I have demonstrated that per sources such as Zillow that the Athens market has actually 'increased' over the past year on the average.) Let's also looks at what happens if rates jump 'another' half a point from 5.5 percent to 6 percent. This can happen you know. Remember rates in the 4.75 percent range a few months ago. The are floating between 5 1/8 - 5.5 percent right now.

Buying a home would save you approximately $73,595 (in today's dollars) over 15 years, compared to renting, based on the assumptions you provided.

Cost comparison		Rent	Buy
Rent and fees		$243,126
Mortgage payments			$259,739
Property insurance	+		$21,579
Property taxes	+		$37,762
Maintenance	+		$7,500
Opportunity cost	+		$40,393
Tax savings (interest/taxes)	-		$29,837
Home Appreciation	-		$194,207
Total cost	=	$243,126	$142,928
Present value at inflation		$182,609	$109,014
Difference			$73,595

So basically the assumption of a price drop and a half a point increase in rates caused you to save another $2200 over the life of the loan or about $146.66 per year. To wait for 'another price drop' would save you lunch money each month.

Am I calling for that mythical bottom of the market? I don't really have to call for it. If you want to own your own home and understand the math behind it, it would seem that owning today even if the market drops lower still makes sense. If you want to play around with some custom scenarios like I just did, please go to http://www.trulia.com/rent_vs_buy/.

Athens GA Home Sales; Week of Aug 10, 09

2009-08-13T07:31:00.002-04:00

This week we have seen some shorter days on market for sales in Athens, GA. Please note the chart of 13 sales thus far for the week of August 10, 2009;

Statistics (13 listings)
	Low	High	Average	Median	Total
List Price	$28,500	$429,900	$156,260	$120,900	$2,031,375
Selling Price	$28,500	$415,000	$147,723	$110,000	$1,920,400
List/Sold(%)	85.00%	101.05%	94.60%	94.55%	--
Days on Market	19	661	150	65	--

Note the "High" sales was on the market for 661 days. The only other sale out of this group of home sales that was over $175,000 sold at $280,000 in 141 days. Roughly 85 percent of this week's sales were under the $175k level.

What is important to note is that sellers are still getting a tight 95 percent of list price. That is good for all of us!

Shopping for a Loan; Getting the Best Deal

2009-08-13T06:51:00.004-04:00

Athens Georgia Homes - Athens GA MLS Search

Foreclosures in the Greater Athens GA area

Neighborhoods and Condominiums Around Athens, GA

Neighborhoods Around Athens:

Condominiums Around Athens:

Foreclosure for Sale! Sure they are out there but are people really buying them?

Quarterly Housing Market Performance for Athens-Clarke

MSA HPI Comparisons

Athens, GA First-Time Home Buyer Tax Credit: A Wealth of Information is Available

The Basics

Limited, But Still Powerful

Available at Closing!

Resources Available from the National Association of REALTORS®

Resources Available from the IRS and FHA

Taking the Long Out of the Short

Athens GA Real Estate Trends and Analysis

Housing Affordability Continues To Hover Near Highest Level In 18 Years

Difficulties in Obtaining Mortgages; Do they still Exist?

Athens GA Home Sales, week of Aug 17, 2009

Greater Athens area Sales Trends and Market Data

Your Home is being marketed on the Net; Is anyone seeing it?

Top Real Estate Websites for Athens, GA or your Town 8/15/09

Does your REALTOR® Blog?

Real Facts about Athens Georgia Real Estate

First Time Home Buyer; Got the FICO, need the 3-4% Down. I might know where you can find it tax free!

Athens GA Homes, Market, and Trends

No Down Payment No Problem; FHA to the Rescue

Locking in your Mortgage Rate

Mortgage Shopping; Negotiating

Nothing says “Pre-Foreclosure” like a Vacant Home!

Words not to use when Advertising your Home

First Time Home Buying in Athens, GA; Buying Vs Renting

Cost comparison

Rent assumptions

Purchase assumptions

Other assumptions

Cost comparison

Athens GA Home Sales; Week of Aug 10, 09

Shopping for a Loan; Getting the Best Deal