Athens Georgia Commercial Real Estate and Land

Selling your house in an increasingly competitive home market

2006-10-18T09:42:00.000-04:00

Home staging experts say there are ways to succeed while other home sellers are struggling

RISMEDIA, October 18, 2006—When it comes to selling your house in an increasingly competitive home market these days, the old real estate adage "location, location, location is taking on new meaning. Staging the optimal location of the furniture and items in the seller's home usually makes a difference between sale or no sale. Home staging experts say there are ways to succeed while other home sellers are struggling.

"Edit, reduce clutter, and rearrange existing furniture," says Dana Dickey, vice director of Interior Redesign Industry Specialists (IRIS), an organization for professional interior redesigners and home stagers – http://www.WeRedesign.com www.WeRedesign.com>. Dickey's comments describe what industry insiders have termed "staging." Staging, the process of preparing and cleaning a home to make it more marketable to potential home buyers, is something that has gained national popularity in recent years. "It's a fairly simple process," says Dickey. "It's also cost-effective. Homeowners I work with are amazed at how the look of their home can dramatically improve with just a little assistance."

Meeting Homeowner's Needs
IRIS trains members to tailor their staging services to meet the needs of individual homeowners based on the homeowner's budget and desired level of assistance. Some homeowners have no problem with organization, for example, yet need assistance with the exterior of their home, to create more curb appeal. Others seek professional assistance for re-organization of furniture and decorating. Whatever the task, the goal remains the same.

"We want to give each home that 'wow' factor," Dickey says. "Especially in today's housing market, in which home buyers largely make their final decision based on emotional factors, it's important that a house make a good first impression."

In addition to the increased speed at which a home sells, staging can also help homeowners boost their asking price. Many professionals focus their attention on two rooms in particular: the kitchen and the bathroom. Due to the high level of traffic through both rooms, each tends to collect clutter and becomes a source of hidden messes.

"It's not that people don't want to pick up," said Dickey. "It becomes a situation where the homeowner just naturally looks past something without even noticing it." She explains that professionals act as objective observers, seeing decorating possibilities and unwanted clutter that a homeowner might not otherwise see.

Popularity Equals Competition
The recent national popularity in staging services seems to have sprung from the popularity of television shows such as HGTV's "Designed to Sell," A&E's "Sell this House," and TLC's "Clean Sweep." While Dickey acknowledges the competition that her business faces, she is reluctant to compare it to the competition that homeowners face when selling a home.

"It can be brutal," says Dickey of the housing market. "That's why we offer our service -- to let people know that the smallest detail can mean the difference between a quick sale and a depressingly long stay on the market. We're here to give their home the edge on the competition."

Design guidelines for historic districts and landmarks in Athens, Georgia

2006-09-11T09:22:00.000-04:00

Design guidelines for historic districts and landmarks

(a) Identification of design guidelines. Concurrent with, or immediately following, the designation of any historic district or landmark, the historic preservation commission shall recommend to the mayor and commission a set of "Design Guidelines" appropriate to the district or landmark. The guidelines are intended to identify the characteristic features of the designation that will be used in determining the compatibility of new construction or alterations of size, location, materials, style, rhythm, and any other quality deemed by the historicpreservation commission to contribute to the character of the historic property.

(b) Procedure for adoption of design guidelines. The historic preservation commission must draft and recommend the proposed design guidelines to the mayor and commission at a public hearing. Adoption of the guidelines by mayor and commission may only be considered after the historic preservation commission's recommendation and following a public hearing as follows: The historic preservation commission and the mayor and commission shall hold a public hearing on the adoption of the design guidelines. Notice of the hearing shall be published in at least three consecutive issues in the legal organ and/or in a newspaper of general circulation within Athens-Clarke County. All such notices shall be published not less than ten nor more than 20 days prior to the date set for the public hearing.

(c) Concurrent action. The historic preservation commission may recommend, and the mayor and commission may consider and adopt, the design guidelines at the same public hearing and/or meeting as the designation of the corresponding historic district or landmark. The legal notices for the guidelines and designated area may be combined into one notice if the hearings are to be combined.

New Home Sales Dip

2006-08-24T13:21:00.000-04:00

WASHINGTON (AP) -- Sales of new homes dropped in July by the largest amount since February while the inventory of unsold homes climbed to a record high.

Piling on more proof that the housing boom is over, the Commerce Department reported Thursday that new home sales fell by 4.3 percent last month to a seasonally adjusted annual sales pace of 1.072 million units. The decline was the largest since an 11.5 percent plunge in February.

Sales of both new and existing homes set records for five consecutive years as the housing industry enjoyed a boom powered by the lowest mortgage rates in four decades. But rates have been steadily rising this year as the Federal Reserve tightens credit conditions as a way to slow the economy and keep inflation under control.

Analysts expect home sales to drop by some 10 percent this year.

In other economic news, orders to U.S. factories for big-ticket manufactured goods fell 2.4 percent in July as demand for aircraft and automobiles weakened.

And the Labor Department reported that the number of Americans filing claims for unemployment benefits last week slipped by 1,000 to 313,000.

Prospective home buyers have turned cautious about making such a big-ticket purchase as mortgage rates have gone up and uncertainty has risen over whether the economy and job creation will keep slowing, analysts said.

The government reported that the median price of a new home was $230,000 in July, down from $233,800 in June and up from $229,200 a year ago.

Rent vs Buy

2006-08-21T13:15:00.000-04:00

In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.\
The chart below shows a cost comparison for a renter and a homeowner over a seven year period.

* The renter starts out paying $800 per month with annual increases of 5%
* The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
* After 6 years, the homeowner's payment is lower than the renter's monthly payment
* With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years

Years Rent Mortgage Differenc Tax Savings | Yearly Difference | Savings
1 800 1000 -200 -50 -2400 -600
2 840 1000 -160 -10 -1920 -120
3 882 1000 -118 +32 -1416 +384
4 926 1000 -74 +76 -888 +912
5 972 1000 -28 +122 -336 +1464
6 1021 1000 +21 +171 +252 +2052
7 1072 1000 +72 +222 +864 +2664
8-30 Savings increase every year

Monthly Expenses: Buying

Your rental company takes part of your rent payment to cover certain housing expenses. When you decide to purchase a home, you accept responsibility for paying for these expenses (listed below). They are additional costs to your monthly mortgage payment and should be included in your budget estimates:

* Property Taxes and Special Assessments
* Home/Hazard Insurance
* Utilities
* Maintenance
* Home Owner Association (HOA) Fee: Doesn't apply to all purchases. It pays for trash and snow removal and maintenance of common grounds if applicable.
* Membership Fee: It may pay for recreational facilities and other services (cable TV).

Sales of U.S. homes will ease modestly

2006-07-11T13:07:00.000-04:00

WASHINGTON, July 11 (Reuters) - Sales of U.S. homes will ease modestly but should stay within a narrow range for the remainder of 2006, a real estate agents' trade group said on Tuesday.

The National Association of Realtors (NAR) said in a monthly forecast that it expects sales this year of existing homes to fall 6.7 percent to 6.6 million units, the third highest yearly level on record, from 7.08 million in 2005.

NAR also said it expects new home sales to fall 12.8 percent to 1.12 million units from 1.28 million in 2005, and for housing starts to dip 6.8 percent to 1.93 million units from 2.07 million last year.

"We should see home sales rise and fall month to month, but don't look for any big shifts one way or the other," National Association of Realtors chief economist David Lereah said in a statement.

"The major housing indicators have been moving up and down within a reasonable range, which means the market should even out just below present levels," he said. "At the same time, housing inventory levels are balanced in much of the country, so overall price appreciation will be at a normal rate."

NAR said it expects 30-year mortgage rates to reach 7.0 percent by the end of 2006. "We remain concerned about the potential impact of higher interest rates in some of the more expensive areas of the country," Lereah noted.

The Realtors group also forecast the national median existing home price for both single-family units and condominiums to rise 5.3 percent this year to $231,300 and for the median price on new homes to reach $243,300, up 1.0 percent from 2005.

But NAR President Thomas Stevens said home prices were leveling out. "Home sellers in most areas understand that the period of abnormal price growth is over, and they have become more realistic about the current market. This is helping to ease the pressure on home prices in some areas," he said.

The association also said it expects the 2006 U.S. unemployment rate to average at 4.7 percent and the Consumer Price Index to be at 3.4 percent this year. U.S. 2006 gross domestic product growth was forecast at 3.4 percent and disposable personal income to rise 3.1 percent.

30-year mortgage rate nears 7 percent

2006-06-30T07:59:00.000-04:00

Money costs a lot more today than it did just three months ago. The average rate on a 30-year, fixed-rate mortgage is flirting with 7 percent and is almost half of a percentage point higher than it was at the end of March.

The benchmark 30-year fixed-rate mortgage rose 10 basis points to 6.93 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.34 discount and origination points. One year ago, the mortgage index was 5.61 percent; four weeks ago, it was 6.72 percent. The last time the mortgage index was higher was April 18, 2002, when it was 6.96 percent.

The 15-year fixed-rate mortgage rose 12 basis points to 6.57 percent. The 5/1 adjustable-rate mortgage rose 10 basis points to 6.59 percent.

Mortgage interest rates are up slightly

2006-04-18T13:19:00.000-04:00

Mortgage interest rates are up slightly over the last two months.

The new Federal Reserve Board chairman, Ben Bernanke, did not disappoint. In his first meeting as chairman, as expected, he raised short-term interest rates by another .25 percent so that the Fed Funds target rate now stands at 4.75%. That is the interest rate that banks use to borrow borrow funds from each other overnight.

The Federal Funds rate is influential because it affects many other short-term interest rates, such as the prime rate and short-term treasury notes.

So why did the Fed raise rates yet again?

After a slow fourth quarter in 2005, the economy seems to have picked up the pace in the beginning of 2006. If the economy grows too fast, wage and price inflation become a fear, so the Fed raises rates to try and slow things down.

We expect mortgage rates to remain fairly stable, with the continued potential for small increases like we've experienced since the beginning of the year. At the same time, there is potential for a little bit of a bump when employment growth figures are announced during the first week of April and as 1st quarter economic figures come out later in the month.

Mortgage Rate Update

2006-04-03T10:43:00.000-04:00

Long-term mortgage interest rates were up again Thursday, and the benchmark 10-year Treasury bond yield rose to 4.86 percent.

The 30-year fixed-rate average climbed to 5.97 percent, and the 15-year fixed-rate edged up to 5.66 percent. The 1-year adjustable was up at 4.97 percent.

The 30-year Treasury bond yield jumped to 4.9 percent.

Rates are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.

In other economic news, the Dow Jones Industrial Average was down 65 points, or 0.58 percent, finishing at 11,150.7. The Nasdaq gained 3.04 points, or 0.13 percent, closing at 2,340.82.

Stock and bond figures are current as of 7:30 p.m. Eastern Standard Time.

Fed Chief Keeping Eye on Real-Estate Loans

2006-03-27T09:02:00.000-05:00

WASHINGTON -- The rapid growth in commercial real-estate loans made by community banks bears watching, even as these mostly smaller, local banks remain in good overall financial health, Federal Reserve Chairman Ben Bernanke warned Wednesday.

"In most local markets, commercial real-estate loans have performed well," Bernanke said. "Our examiners tell us that lending standards are generally sound" and are not comparable to the lax standards that contributed to the savings and loan crisis two decades ago, he said.

"However, more recently, there have been signs of some easing of underwriting standards," Bernanke said in prepared remarks to the Independent Community Bankers of America meeting in Las Vegas.

The rapid growth of commercial real-estate loans "raises the possibility that risk-management practices in community banks may not have kept pace with growing concentrations and may be due for upgrades in oversight," he said.

A copy of Bernanke's remarks was distributed in Washington.

Steps to Raise your Credit Rating

2006-02-28T10:48:00.000-05:00

1. PAY YOUR PAST DUE ACCOUNTS.

Yes, this sounds obvious, but understand that credit scoring software severely penalizes you for having accounts with a past due balance. Making sure all of your accounts are current, and paying the amount that shows as being past due on the credit report can increase your credit score by a significant amount.

2. TRY TO “GET RID” OF YOUR LATE PAYMENTS.

Contact all creditors that have reported late payments on your credit and request a good faith adjustment that actually removes the record of late payments reported on your account. Be persistent, if they refuse to remove the late payments at first, remind them that you have been a good customer that would deeply appreciate their help. Call several times if you need to and ask for supervisors…persistence and politeness pay off in this scenario.

3. REQUEST TO HAVE YOUR CREDIT LIMITS INCREASED.

Contrary to popular belief, having low credit limits on a credit card can actually hurt your credit score. Having low available credit limits affects your “actual debt to available credit ratio”. For example, if you owe a total card debt of $10,000 and your total credit available is $20,000, you are only using 50% of your total credit available. But if you have card debt of $10,000 and your total credit available is $15,000, you change your ratio to 66% of your available credit being used. The lower the percentage of debt to available credit the better, as it shows you are able to handle having credit available without running it up to the max.

4. BECOME AN “AUTHORIZED USER”.

If you have a short and limited credit history, you can ask someone to add you to their credit card account as a joint account holder or an authorized user. When added, the primary account holder’s credit card will appear on your credit report. Credit scoring software will treat the added account as though it is your account and you will benefit from the low balance and the long payment history for that account. It is important to remember that being an authorized user is helpful for your credit score only if (1) the person is carrying debt below 10% of the credit limit on that card and (2) has had good payment history on the card for seven years or longer…and the longer the history, the better. Being an authorized user is potentially detrimental to your credit score if the person giving you the card either maxes out the credit or pays late, since this would report on your credit report too.

5. DO NOT CLOSE YOUR OLD CREDIT CARDS, KEEP THEM ACTIVE.

15% of your credit score is determined by the age of the credit file. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you’ve had credit…as well as increase your “debt to available credit ratio” as discussed in point 3. Use the old card at least once every six months to avoid the account rating to change to “Inactive”. Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down. An inactive account is ignored by Fair Isaac’s credit scoring software, so you will not get the benefit of the positive payment history and low balance that card may have had in the past.

From Money Magazine - 2005 Best Places to Retire

2006-02-15T09:25:00.000-05:00

Athens, Georgia As much as Bob and Shirley Willoughby wanted to retire near their kids in Atlanta, they didn't want the hassles of a big city. They also knew that their children might eventually move. So the Willoughbys sought a town nearby that could stand on its own, one with a vibrant cultural scene and a strong health-care system.

Athens, home to the University of Georgia, met their requirements and then some. The town of 102,700 lacks even a hint of modern urban sprawl, giving it a distinctive, cozy feel. The pedestrian-friendly downtown lines the north edge of the campus.

Two well-regarded hospitals are within five miles of the town center; three golf clubs sit just beyond the perimeter. Entertainment includes six local theaters, wine tastings in the botanical gardens and a music scene that both spawned rock superstars REM and supports a community orchestra.

Anyone over 62 can take classes at UGA for free. And Learning in Retirement, a local member-run nonprofit, taps professors to teach classes ranging from foreign relations to geology.

To folks arriving from any big city metro area, Athens is strikingly affordable. Modest homes start at less than $150,000 and dinner for two at one of Athens' finer restaurants runs less than $50.

"This is the best decision we ever made," says Bob, a retired Alcoa executive who is taking an herbology class this semester and recently attended his first Bulldogs football game. "We'll be okay here even if our kids move."

Oconee County, Georgia #1 in Southeast, #3 in Nation

2006-02-15T09:09:00.000-05:00

The February, 2006 issue of the Progressive Farmer Magazine has named Oconee County, Georgia as the #1 place to live in the Southeastern United States and the #3 place to live in the entire country. Counties in the overall top 10 and the regional top 20 lists are ranked first according to cost of living (the ratio of average household income to average household spending). Oconee County is just minutes away from downtown Athens and the University of Georgia which received a top ranking for Best Graduate Schools for 2006 by U.S. News & World Report.

As one of only two places that made the top 10 two years in a row, it is especially impressive since the formula for selection was changed extensively. The formula takes into account crime rates, air quality, access to health care (the number of medical professionals per thousand people), education (student/teacher ratios and college-bound percentages) and leisure activities (restaurants, museums, parks, golf courses, etc.) A four-star rating indicates the county finished in the top 25 percent of the top 200 list in a category, while one star would indicate the bottom 25 per cent. Oconee County has 4 star ratings in Education, Low Crime and Low Pollution. Received 2 star ratings in Access to Health Care and Leisure Activities.

For the entire article go to www.pfbestplaces.com

Top Mistakes of Home Buyers in 2005

2006-01-02T09:50:00.000-05:00

Here are some of the top mistakes made in 2005:

-- Were represented by the same agent representing the sellers. Thinking they might get a better deal or out of ignorance used the listing agent to represent them as well. Most states require written acceptance of this situation known as dual-agency by both parties under agent license laws. All buyers should be represented by an agent who has a fiduciary responsibility to them. Hire an Exclusive Buyers Agent.

-- Bought properties to flip at top-of-market prices. Thinking the bubble headlines were wrong or didn't apply to them, newbie real estate investors wanted to become week-end millionaires. What they didn't know is they were buying the experienced investors portfolios as they exited markets at the top.

-- Utilized Interest-Only Mortgages. Many home-hungry buyers discovered the only way you can pay top-of-market prices is to get an interest-only mortgage. With declining prices and no monthly principal payments, these homebuyers could fuel a foreclosure market in 2006. Fixed-rate mortgages will become the majority in 2006 as mortgage underwriters and educated consumers are reunited.

-- Overlooked Resale Characteristics. New construction was the rage in 2005, everyone wanted to select finishes, floor coverings and kitchen cabinets. Buyers should beware when this year’s home buyers become sellers, buyers could bypass their resale that was new in 2005 for the chance to design their own new home. Look to future before signing on the line.

-- Skipped Performing a Home Inspection. Before some markets shifted away from sellers markets, many homebuyers waived their right to a property inspection. Never, skip or waive the right to a inspection, the benefits far out weigh the costs and could save you numerous headaches and expenses later. Hire a professional, not Uncle Bert.

-- Misinterpreted developers’ giveaways. Two years free condominium assessments, stainless appliances and plasma TVs were thrown in to induce buyers to write contracts to purchase. What many buyers thought were a freebie were actually a signal that markets were softening and that projects were slow to sell from increased competition and a lack of buyers. Incentives are a Band-Aid for a languishing development.

-- Didn't Read Homeowners Association Documents. Getting rid of Fido because you didn't know you were moving into a no-dog building is an example why every buyer should request and read home owner association declarations, rules and regulations, association meeting minutes and budgets. Ask if there are any special assessments (typically for capital improvements; new roofs, windows, elevators) or planned ones. Special assessments can run into the thousands.

-- Neglected to request rates of state, county or local transfer taxes paid by buyers at closing. Some buyers learn too late that they might need large amounts of extra money to pay transfer taxes in the state, county and city where they are purchasing property. Transfer taxes which typically can't be financed can kill a transaction. Inquire when you start your search how much transfer taxes are and who pays them.

Mortgagre Rates (Dec. 8 - Dec. 14) the experts say:

2005-12-16T11:04:00.000-05:00

It looks like mortgage rates have peaked for now.

Half of our mortgage experts expect rates to remain relatively unchanged (plus or minus 2 basis points) over the next 35 to 45 days. The rest are evenly split among those who expect them to rise and those who think they'll fall.

EXPERTS' COMMENTS:
"The techs are still calling for a mild, bullish correction, but on Monday there appeared to be more weather-generated angst. Instead of hurricanes knocking Gulf oil production offline, we had cold weather in the Northeast raising concern about the need for distributors to vie for more supply of heating oil. More heating oil equals more crude. More crude equals inflation fears. Healthy productivity numbers on Tuesday undid Monday's damage. We also have a 99 percent certainty of another Fed hike on Dec. 13 and a market factoring another hike after that. Concern will continue even when the Fed stops hiking. The fear then will take the form of 'Now that the Fed has stopped hiking, will inflation break out?'"

Escaping the Tax Trap

2005-12-07T13:46:00.000-05:00

You might not live the life of the rich and famous, but when Uncle Sam taxes you, he might treat you as though you do.

The alternative minimum tax, designed more than three decades ago to catch the cagiest of rich tax evaders who used clever deductions to eliminate their income tax, is becoming the feared tax of the middle class. Typically, people with incomes between $150,000 and $300,000 are most vulnerable to the AMT, but sometimes people with moderate incomes get nabbed - especially single parents with several dependents and deductions, salespeople with a lot of unreimbursed business expenses or investors with certain bonds.More...

Mortgage Applications Rise

2005-12-07T13:25:00.000-05:00

NEW YORK (Reuters) - U.S. mortgage applications increased for the first time in a month, mostly driven by a robust rebound in home refinancing volume even as interest rates rose, an industry trade group's figures showed Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 2 increased 5.2 percent to 656.7, up from the previous week's 624.1.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.32 percent, up 0.12 of a percentage point from the previous week's 6.20 percent. It was the first increase in three weeks.

The MBA's seasonally adjusted purchase mortgage index increased 4 percent to 495.1 from the previous week's 476.2. The index is considered a timely gauge on U.S. home sales.

The group's seasonally adjusted index of refinancing applications climbed 7 percent to 1,596.4 compared with 1,484.3 the previous week. This was the first increase in the index in seven weeks.